the Prefect against the requisition, and the affidavits of the Mayor of Palermo and one of his officials (see paragraph 33 above). It is difficult to
accept that the occupation seriously harmed the interests of ELSI in view
of the evidence produced by Italy that measures taken by the Mayor of
Palermo for the temporary management of the plant permitted the continuation and completion of work in progress in the months following the
requisition. The United States has asserted that the continued production
was very limited, and cannot be equated with resumption of full production in the plant, and continues to contend that the plant and machinery
fell into disuse following the requisition and deteriorated rapidly in value.
The Court of Palermo however found itself unable to establish that any
damage to the plant had been caused by the occupying workers.
108. The reference in Article V to the provision of "constant protection
and security" cannot be construed as the giving of a warranty that property shall never in any circumstances be occupied or disturbed. The dismissal of some 800 workers could not reasonably be expected to pass without some protest. Indeed, the management of ELSI seems to have been
very much aware that the closure of the plant and dismissal of the workforce could not be expected to pass without disturbance; as is apparent
from the removal of the company's books and "quite a lot of inventory" to
Milan (paragraph 17 above). In any event, considering that it is not established that any deterioration in the plant and machinery was due to the
presence of the workers, and that the authorities were able not merely to
protect the plant but even in some measure to continue production, the
protection provided by the authorities could not be regarded as falling
below "the full protection and security required by international law"; or
indeed as less than the national or third-State standards. The mere fact
that the occupation was referred to by the Court of Appeal of Palermo
as unlawful does not, in the Chamber's view, necessarily mean that the
protection afforded fell short of the national standard to which the
FCN Treaty refers. The essential question is whether the local law, either
in its terms or its application, has treated United States nationals less well
than Italian nationals. This, in the opinion of the Chamber, has not been
shown. The Chamber must, therefore, reject the charge of any violation of
Article V, paragraphs 1 and 3.
109. The Applicant sees a further breach of Article V, paragraphs 1
and 3, of the FCN Treaty, in the time taken - 16 months - before the
Prefect ruled on ELSI's administrative appeal against the Mayor's requi-