Treaties — Interpretation of — Principles and rules of — Literal interpretation — Natural and ordinary meaning — Whether absolute principles of interpetation — Multilateral texts — Interpretation by reference to subsequent agreements between two Parties — Treaty of Peace with Italy and Memorandum of Understanding between Italy and United States of America (Lovett-Lombardo Agreement) — Relevance of subject-matter of provision — Considerations presumed present to Parties when treaty concluded — Foreseeability of future problems — Relevance of considerations of equity — Special nature of peace treaty — Distinction between clauses dealing with restoration of property and those dealing with compensation — Significance of distinction for question of taxation of restored property and of compensation payments — Restrictive theory of interpretation — Whether based on equitable considerations.

Treaties — Special kinds of — Peace treaties — Imposed rather than negotiated — Relevance of manner of conclusion to interpretation of treaty — Relevance of considerations of equity — Treaty of Peace with Italy, 1947.

Disputes — Arbitration — Procedure — Competence — Conciliation Commissions under Treaty of Peace with Italy — Competence to determine relevant issues of Italian law — Whether application of Italian taxes compatible with Italy's obligation under Treaty of Peace — Articles 78 and 83 of Treaty.

War — In general — Performance of treaties of peace — Treaty of Peace with Italy, 1947 (Article 78 (4) (a) and (c)) — Claims for compensation for loss or damage to property — Extent and meaning of tax exemption provisions — Imposition of succession tax — Whether indemnity payable to heirs of deceased claimant is subject to succession tax.