company executives and "peacefully remained thereafter al1 day on the premises", and on subsequent days a small group of employees wandered about on the premises. The Mayor of Palermo, in an affidavit, has stated that "The occupation of the plant by the employees (which started well before the requisition) turned out to be of a 'cooperative' nature after the requisition and was no obstacle to the continuation of those activities which were pos'sible udder the circumstances", and an officia1 of the Municipality of Palermo has stated, in an affidavit, that "there were no problems such as 'hard' picketing" and that one of the production lines was re-activated and "we proceeded regularly with the contracts in hand". According to an affidavit filed by the United States "the plant sat idle for the remainder of 1968", but Italy has produced evidence showing that some work in progress was continued and completed in the months following the requisition, in particular for the Nato Hawk programme. 34. On 19 and 20 April 1968 meetings were held between officials of Raytheon and the President of the Sicilian region, Mr. Carollo, who stated that "the Regional and Central Governments had reached agreement to form a management company with IR1 participation to operate ELSI" and invited Raytheon to join the management company. The proposa1 would have entailed the contribution by ELSI of new capital and its assuming complete responsibility for past debts; in the discussion Mr. Car0110 stated that "the Region now has a single goal, to keep the workers employed". At the request of Raytheon, Mr. Carollo, on 20 April 1968 supplied Raytheon with a memorandum to provide the company with "some fundamental elements of judgment". In that memorandum he explained that it was impossible for the time being for Raytheon to liquidate ELSI, for the following reasons : "1. Nobody in Italy will purchase [Nessuno in Ztalia compreràl, that is to Say IR1 will not purchase, neither for a low nor for a high price, the Region will not purchase, private enterprise will not purchase. Let me add that the Region and IR1 and anybody else who has any possibility to influence the market will refuse in the most absolute manner to favor any sale while the plant is closed. 2. The Banks, which have outstanding credits for approximately 16 billion Lire, cannot and will not accept any settlement even at the cost of dragging the Company into litigation on an international level. 1 mean to refer to Raytheon and not to ELSI because the distinction between ELSI and Raytheon is not found to be admissible, since any and al1 financing was granted to ELSI based on the moral