Under the terms of the peace treaty of 10 Feb., 1947, Italy gave up the city of Trieste and the Istrian peninsula, which were constituted as the Free Territory of Trieste. Since the terms of the treaty relating to the Free Territory of Trieste could not be put into effect, the Territory remained under military occupation for 9 years. The Territory was divided into two zones: Zone A (which included the city of Trieste) administered by the United States/United Kingdom Military Government, and Zone B (the Istrian peninsula) administered by the Yugoslav Military Government. On 5 Oct., 1954, the Governments of the United Kingdom, United States, Italy and Yugoslavia initialled in London a Memorandum of Understanding terminating military government in both zones of the Territory. On 25 Oct. the United Kingdom and United States Governments withdrew their forces from Zone A and handed over the administration of this zone, less one small strip of territory, to the Italian Government. Zone B, together with this strip, was placed under Yugoslav (civil) administration. The Security Council of the United Nations was informed of these ‘practical arrangements,’ and the Soviet Government ‘took cognizance’ of them in a manner which virtually amounted to approval.