"May it please the Court,
To adjudge and declare that the Application filed on 6 February 1987 by
the United States Govemment is inadmissible because local remedies have
not been exhausted.
If not, to adjudge and declare :
(1) that Article III (2) of the Treaty of Friendship, Commerce and Navigation of 2 February 1948 has not been violated;
(2) that Article V(1) and (3) of the Treaty has not been violated;
(3) that Article V (2) of the Treaty has not been violated;
(4) that Article VI1 of the Treaty has not been violated;
(5) that Article 1 of the Supplementary Agreement of 26 September 1951
has not been violated;
and, accordingly, to dismiss the claim."
I l . In the course of the oral proceedings the following submissions were
presented by the Parties :
On behalfof the United States of America,
at the hearing of 16 February 1989 :
"The United States requests that the objection of the Respondent be
dismissed and submits to the Court that it is entitled to a declaration and
judgment that :
(1) the Respondent violated the international legal obligations which it
undertook by the Treaty of Friendship, Commerce and Navigation
between the two countries, and the Supplement thereto, and in particular, violated Articles III, V, and VI1 of the Treaty and Article 1
of the Supplement; and
(2) that, owing to these violations of the Treaty and Supplement, singly
and in combination, the United States is entitled to reparation in an
amount equal to the full amount of the damage suffered by Raytheon
and Machlett as a consequence, including their losses on investment,
guaranteed loans, and open accounts, the legal expenses incurred by
Raytheon in connection with the bankruptcy, in defending against related litigation and in pursuing its claim, and interest on such amounts
computed at the United States prime rate from the date of loss to the
date of payment of the award, compounded on an annual basis; and
(3) that Italy accordingly should pay to the United States the amount of
$12,679,000 plus interest."
At the hearing of 27 February 1989 (afternoon) the Agent of the United States
confirmed that these were the final submissions of the United States.
On behalfof the Republic of ltaly,
at the hearing of 23 February 1989, repeated as final submissions at the hearing
of 2 March 1989 (aftemoon) :
"May it please the Court,
A. To adjudge and declare that the Application filed on 6 February