OBSERVATIONS ON DRAFT PEACE TREATIES



  b. The ownership (by the Government of the "Free Territory of
Trieste" or by such body as chosen by it) of the generating stations
above-mentioned, electric transmission and telephone lines, with the
undertaking never to adopt any measure which might alter the full
ownership of the above installations and their free working.
  c. The full right of transmission and use of the electricity as
generated, without imposing on it any payment of taxes or charges
of any kind. Italy would likewise in no case forbid, limit or im-
pose any customs or other duties on the importation of materials
necessary for the proper working and upkeep of installations.
  d. Any other right or faculty necessary for the proper working of
the power stations, electric transmission and telephone lines.
  5. The Italian Delegation asks, therefore, to be allowed to submit
some counter-proposals concerning the text of Annex 9 as proposed
by the United States Delegation.
  6. Should the Italian proposal for the improvement of the new
frontier between Yugoslavia and Italy for the area of the Upper and
Middle Isonzo not be accepted, it would in any case be essential for
the reasons set forth in the preceding paragraphs, that the aforesaid
concessions and facilities should be granted by Yugoslavia to the
"Free Territory of Trieste".


Counter-Proposals Concerning Annex 9 (Territory of Trieste) as
            Proposed by the United States Delegation
  N.B.-The sentences and words underlined in the following para-
graphs repeat sentences or words taken from Annex 9, par. c of the
United States proposals.
  1. The Italian Government will permanently grant the "Free Ter-
ritory of Trieste" (or such body as is chosen by it):
  a. A permanent concession of rights to the waters of the Isonzo and
its tributaries north of Salcano (Gorizia) up to the source of the river
for the purpose of working existing and future generating stations;
  b. The ownership of the Doblari and Plava generating stations of
the high tension electric transmission lines Doblari-Trieste (at 130.000
volts) and Plava-Gorizia-Monfalcone-Trieste (at 50.000 volts) and
of the telephone lines essential to the proper operation of those power
stations. The Italian Government will undertake never to adopt
any measure which might alter or modify the full free ownership of
the above installations and their free development;
  c. The right of transmitting and utilising the electricity generated
there, undertaking never to request payment or taxes or charges of
any kind for the electricity thus generated. Italy will not in any



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