(1 STAT.] ITALY--FINANCIAL AND ECONOMIC RELATIONS-AUG. 14, 1947 3979 One of the more troublesome problems which has arisen in con- Property in Italy of nection with Article 78 of the Treaty of Peace has been concerned n1 i c a n iSt cO 61 Stat., Pt. 2, with the property in Italy of American oil companies. The principal . 1403. difficulty which has been encountered in returning such properties to the rightful owners has been the question of the employment rights which accrued during the period of control of the American oil com- panies by the Government of Italy. I am authorized by my Government to advise you of the following agreement on the question of employment rights which has been reached between the Government of Italy and representatives of the oil companies: 1. The Anglo-American companies (which had originally re- quested the Government of Italy to consider as broken the con- tinuity of employment for the employees on their pay rolls at the moment of liquidation of the companies) have now in principle agreed to re-engage 95% of the personnel. The Azienda Generale Italiana Petroli on its side shall, in full agreement with the !Italian Treasury, pay the indemnities for the period running from the date of the liquidation to the date of re-employment. The implementa- tion of this formula can be expected to take place in the very near future. 2. An agreement has been reached on the partitioning of the market between the foreign companies on the one side and Azienda Generale Italiana Petroli on the other side. This agreement has involved considerable sacrifice on the part of Azienda Generale Italiana Petroli. 3. Insofar as the war damages suffered by the American com- panies are concerned, the duty of the Government of Italy derives from Article 78 of the Treaty of Peace, and the policy applied will p.6l 4 tat. Pt. 2 , be in accordance with Article III, paragraph 16, of the above A "e,p. 39 M . referred to Memorandum of Understanding. It is also understood that the properties and all assets will be returned, including, of course, the employee compensation funds which were on hand at the date of liquidation and which represent the funds available for persons still employed by the companies. This agreement was made known to the representatives of the American oil companies in the United States of America concerned with this problem, as well as to officials of your Department, all of whom signified their approval. I can, therefore, confirm to you that the Government of Italy accepts all the above engagements and will implement them at the earliest possible date. Accept, Sir, the renewed assurances of my highest consideration. LOMBARDO Chief of the Itaian Ecomic and Financial Deaation The Honorable ROBEcT A. Lov1TT, Acting Scretary of State.
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