61 STAT.] ITALY-FINANCIAL AND ECONOMIC RELATIONS-AUG. 14,1947 3967 cord such property or interests treatment identical with that pro- vided in section (a) above. (c) The Government of Italy shall, with reference to para- graphs (a) and (b) above, apply Paragraph 4 (b) of Article 78 of the Treaty of Peace. 61 Stat. , Pt. 2, p. 1404 . (d) Compensation paid in accordance with terms of this section shall be free of levies, taxes, or other charges and shall be freely usable in Italy but shall be subject to the foreign exchange control regulations which may be in force in Italy from time to time. ARTICLE IV PREWAR CLAIMS OF THE GOVERNMENT OF THE UNITED STATES OF AMERICA OR OF UNITED STATES NATIONALS 17. (a) The Government of Italy, recognizing the existence of legitimate claims of the Government of the United States of America or of United States nationals against the Government of Italy or Italian nationals arising out of contracts or other obligations incurred prior to December 8, 1941, agrees that it will make every effort to settle at an early a date as possible, and to facilitate to the extent possible the payment of the debts or other claims referred to here- inabove. (b) With respect to lira payments made under Italian law to Italian government agencies in purported discharge of debts in non- lira currencies owed by Italian nationals to nationals of the United States of America, the Government of Italy fully recognizes the exist- ence of legitimate claims of the Government of the United States of America or United States nationals in these cases. The Government of Italy further agrees that within six months from the date of the signing of this Memorandum of Understanding it will either assume the obligation to make payment of such debts in foreign exchange to the extent that lira payments were made to the Government of Italy in the manner referred to above, or it will provide that the Italian debtor shall be held directly responsible for the payment of such debts. In either event, the Government of Italy agrees that it will make available the foreign exchange necessary for the discharge of such debts at the earliest date permitted by the Italian foreign ex- change position. It is understood that the provisions of this section do not prejudice any settlement between the Government of Italy and the Italian debtors with respect to such lira payments. ARTICLE V DEFINITIONS 18. For the purposes of this Memorandum of Understanding, the "Nat term "nationals" means individuals who are nationals of the United States of America, or of Italy, or corporations or associations organized under the laws of the United States of America or Italy, at the time of the coming into force of this Memorandum of Understanding, pro- vided, that under Article III above, nationals of the United States of
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