My telegram D No. 1739 19th September. [1] Council of Foreign
Ministers. Yugoslav-Italian Frontier.

The following reports of statements by the Australian, New Zealand
and South African Representatives have been supplied by the
respective delegations.

1. Dr Evatt stressed the right of Australia to participate in
every aspect of the Peace Settlement. He welcomed the opening
remark of the Chairman (Dr. Wang) [2] to the effect that just and
lasting peace settlements require wide discussion open to all
parties interested and said that the Australian Government
welcomed this suggestion. Australian interest in the matter under
discussion arose from no territorial claims but from the fact that
as a country which had carried an active and sustained
belligerency against the axis powers, Australia felt that it had a
right in common with other countries who had made a similar
contribution to a direct part in major aspects of the peace
settlements. The Council should, therefore, decide between two
alternatives:-

(A) That countries who had made active and effective contribution
to victory should be fully associated at this stage with peace
making processes as in the question under discussion or,
(B) That recommendations to the Council should be submitted later
to the free deliberation of conference including such States. It
was almost as important to adopt just and democratic methods for
arriving at peace settlements as to secure just settlements
themselves. It was his understanding that the absence of the
Canadian Representative from the present meeting was due to
Canada's realisation that present methods of consultation should
be extended to more continuous participation. Australia was
pleased with recognition of her status but agreed with the
Canadian view. It would be wise and only just for the Council to
make provision for countries in the category referred to-they were
few in number and besides the British Dominions would involve for
example Greece and Yugoslavia-to be heard.

2. On the Italy Yugoslav Frontier under discussion, the views put
forward on behalf of the Australian Government were advanced
without dogmatism or rigidity but with frankness. By reason of
Italy's record in the war and its proved policies of oppression
followed in Venezia Giulia after 1920 as from the general history
and character of the region, the fair and just presumption must be
that Yugoslavia was entitled to the Istrian Peninsula and Western
Frontier to the north approximating as nearly as possible to the
ethnic line which admittedly could be accurately determined if
necessary after investigation. Consequential deprivations of coal
and bauxite which Italy might suffer could be remedied by special
economic arrangements.

3. Trieste, however, would be left as a pocket under such a
settlement. Conflicting claims of sovereignty over Trieste could
not be reconciled nor was there any determining factor which would
decide that Trieste should go one way or the other. The obvious
and reasonable answer seemed to be that the principle of
Internationalisation, already conceded by Yugoslavia and Italy in
respect of Trieste port facilities, should be extended to cover
the general status and administration of the City. Trieste should
be neutralized and demilitarized and put under joint Italy-
Yugoslavia control with proper relation to an international
supervisory authority. The Heads of an International Convention
could be drafted for this purpose. Dr. Evatt asked the Council to
consider the question of Trieste from a broad angle irrespective
of ideas of national sovereignty and to regard it as a further
opportunity for application of the principle of international co-
operation already favourably endorsed by the Council in respect of
former Italian colonies designed for the benefit of people
primarily concerned and the peace of the world (the text of the
statement has since been circulated as a conference paper [3]).

4. The Chairman (M. Bidault) [4] expressed the Council's thanks
for the Australian contribution and said that the Council would no
doubt study his suggestion for procedure as to consultation.

[matter omitted]