The Economic Miracle

Abstract

According to the Italian peace treaty of February 1947 the region around the city of Trieste had been created a free territory of Trieste to be ruled by a governor chosen by the Security Council of the United Nations. However, the Council was never able to agree upon a governor: hence the Anglo-American occupation of the northern Zone A which included the city, and the Yugoslav occupation of the southern Zone B, dragged on. In effect Zone A was half assimilated into Italy and Zone B more than half assimilated into Yugoslavia. By the end of De Gasperi’s time both the Western Allies and the Italians were tired of the tension in the so-called free territory. De Gasperi’s successor, Giuseppe Pella, laid claim to the whole area, and at one moment mobilised Italian troops — only to arouse angry protests from Belgrade.