Apart from this objection, the Commission has continued its work and the Italian Delegation has put forward a project for a Consortium in the port of Fiume between the three interested States. Such a project, in a general way, attributes to Fiume the character of an international port, leaving the possibility of the enjoyment of special privileges and guarantees to each of the contracting States for a freer development of the traffic which affects them. With regard to such a project, the Serbo-Croatian-Slovak Delegation has put forward its objections, presenting on its own account a draft of a project, according to which the Sauro Basin and the Delta would be excluded from the port of Fiume and assigned exclusively to Yugoslavia.
The Italian Delegation has formally declared that it could not accede to any pact whatsoever which, destroying the unity of the port of Fiume, would irremediably damage the future of the new State, and, in answer to the objections raised by the Serbo-Croatian-Slovak Delegation to the Italian project, our Delegation has presented another plan, in which full consideration was given to the said exceptions. But, in the course of the following discussion, the points of view of the two Delegations could not be reconciled. The sittings were suspended on 24th March, to be resumed shortly.
The new Lausanne Conference. Following the counterproposals put forward by the Government of Angora, the British Government has convened in London an Inter-Allied meeting in order to examine what modifications to the drafting and the substance of the Peace Treaty presented to the Turks on the 30th of last January may be possible. The Allied Representatives at this meeting have decided to invite the Turks to resume as soon as possible at Lausanne the discussion with the Allied experts and have at the same time come to an agreement as to the line of conduct to follow in such a discussion.
In the text of the reply sent to the Government of Angora, which has been published, the Allies have deemed it opportune to insert some remarks and objections on certain points of special importance, as for example that regarding the removal of the Economic Clauses asked by the Turks, to which the Allies cannot accede; that concerning some part of the judiciary declarations and the Turkish demands relative to substantial modifications of the Territorial Clauses already agreed upon, such as that of Castelrosso, whose restoration to Turkey could not be countenanced.
It is to be hoped that the good-will that both parties have the intention of displaying in the imminent negotiations of Lausanne may bring about speedily the conclusion of peace in the East, which corresponds with the warmest wish and interest of the Italian Government.
Italo-Polish Relations. Mr. Skrzynski came to Milan to express to me the gratitude of Poland for the friendly attitude of Italy in the determination of the Polish frontier, which took place recently. Expressing a personal view, I mentioned to him the advisability of a larger extension of autonomy to the population of Eastern Galicia. I profited by the occasion to examine with the Minister for Foreign Affairs some concrete points, which, with regard to oil and coal, concern more closely our commerce. I recognised with satisfaction the friendly disposition which animates the Polish Government and I was struck with the impression that whenever important Italian enterprises should wish to develop their activity in Poland, they would find there the best of welcomes. The representatives of some Italian firms of standing, moreover, are now already in negotiation at Warsaw, and the results, I hope, will in a short time confirm the favourable attitude of the Polish Foreign Minister.
The Visit of the Austrian Chancellor Seipel. In the conversations I had at Milan with the Austrian Chancellor, both parties expressed the reciprocal desire and interest to improve further relations between the two countries. The Chancellor has warmly thanked the Italian Government for the helpful action on behalf of Austria and has asked our support for the satisfactory solution of all problems which might contribute to the economic reconstruction of the Republic. I gave favourable assurances and, consequently, have accordingly hastened the negotiations already begun for a commercial agreement and I have had examined numerous questions which had been dragging on unsolved for some time.
It is to be hoped that, the last difficulties having been removed, the Commercial Treaty may be signed within a few days. The Clauses of the Portorose Conventions, signed and not ratified by the contracting parties, will be included in it. The Chancellor has asked that the small Austrian properties in Italy and the historical Austrian Institute in Rome should be restored to Austria, as was done for Germany. While I declared myself favourable to his requests, I have, for my part, reminded him of the situation of Italian property in Austria and have obtained from the Chancellor satisfactory assurances concerning this and other subjects. With reference to the Conventions signed at the Conference of Rome, some of which have notable importance for Italy, the Chancellor has promised to proceed to their ratification without further delay.
The Commercial Relations with Austria. The negotiations with Austria are being conducted with a spirit of the greatest good-will on both sides, in order to arrive in a short space of time at an agreement which should establish regular and profitable relations between the two countries and also after the first period, during which the economic relations between the two States are regulated by the Treaty of St. Germain. If some difficulty still remains, this is due in the first place to the fact that it is not the case of negotiating pacts which, with regard to their application and their consequences, could remain restricted to the exchanges between the two neighbouring States, but are destined to have a repercussion also on our relations with the other States which, for their imports into Italy, enjoy the “most favoured nation” clause.
This fact, independently of the specially favourable conditions by which certain important industries, competing with ours, are working in Austria, compels us to be very cautious in adhering to the many Austrian requests, and all the more that, for financial and other reasons, Austria is herself not in a position to meet our demands to the extent which is essential to us. The two Delegations have, however, already arrived at an agreement on most of the questions which have been the subject of reciprocal demands, and now certain controversies remain to be solved which, although they offer the greatest interests for both sides, it is to be hoped may be solved with satisfaction to all.