Creation of Triest Free Territory: an examination of the decision-making process through correspondence letters in the aftermath of World War II

Bianchini, Virginia (2025) Creation of Triest Free Territory: an examination of the decision-making process through correspondence letters in the aftermath of World War II. Economic History Student Working Papers (39). Department of Economic History, The London School of Economics and Political Science, London, UK.

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Abstract

This paper examines the establishment of Trieste as a Free Territory after WW2. The existing literature covered its contested status between Yugoslavia and Italy, focusing on its socioeconomic, and geopolitical challenges. However, I adopt a unique approach examining correspondence letters between country leaders and internal reports to provide first-hand accounts of the negotiations and considerations of leaders from the United States, United Kingdom, Italy, France, and the U.S.S.R. The methodology involves a qualitative analysis of the correspondence letters to comprehend the decision-making process behind the creation of Trieste Free Territory. The findings reveal a consensus on establishing a unique currency the "Triestuno" and Bank of Issue for Trieste, which aimed to provide financial stability but faced challenges due to limited initial capital and dependency on external financial support. It then complements this with internal reports providing data on economic indicators such as budget allocations, balance of payments, labour, and wages. The budgetary analysis shows a balance between revenue and expenditure, with a potential surplus indicating cautious financial planning. Furthermore, the balance of payments reveals Trieste's dependence on international trade, particularly with neighbouring countries and the importance of the port and shipbuilding industry offers potential for economic growth.

Item Type:	Monograph (Working Paper)
Official URL:	https://www.lse.ac.uk/Economic-History/Working-Pap...
Additional Information:	© 2025 The Author
Divisions:	Economic History
Subjects:	H Social Sciences > HC Economic History and Conditions J Political Science > JZ International relations D History General and Old World > D History (General) > D839 Post-war History, 1945 on
JEL classification:	F - International Economics > F5 - International Relations and International Political Economy > F50 - General
Date Deposited:	03 Feb 2025 10:57
Last Modified:	03 Feb 2025 10:57
URI:	http://eprints.lse.ac.uk/id/eprint/127146

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