graph :the allegation by the United States of a violation of this paragraph by Italy relates to the first sentence. 69. In terms of the present case, the effect of the first sentence of this paragraph is that Raytheon and Machlett are to be permitted, in conformity with the applicable laws and regulations within the territory of Italy, to organize, control and manage ELSI. The claim of the United States focuses on the right to "control and manage"; the right to "organize", apparently in the sense of the creation of a corporation, is not in question in this case. 1s there, then, a violation of this Article if, as the United States alleges, the requisition had the effect of depriving ELSI of both the right and practical possibility of selling off its plant and assets for satisfaction of its liabilities to its creditors and satisfaction of its shareholders? 70. It is undeniable that the requisition of a firm's "plant and relative equipment" must normally amount to a deprivation, at least in important part, of the right to control and manage. It was objected by Italy that the requisition in no way affected "control by the shareholders over the company", but merely concerned the management by the company of property belonging to the company. It is true that the direct impact of the requisition was only on control of the property requisitioned. It is however also undeniable that this requisition, which remained in effect until30 September 1968, was issued to avoid the closure of ELSI's plant, the dismissal of its workforce, and as a consequence the probable dispersa1 of the assets, al1 of which were integral to ELSI's plan for orderly liquidation. Since the requisition thus had the design of preventing Raytheon from exercising, for six critical months, what was at that time a most important part of its right to control and manage ELSI, there exists a question whether the requisition was in conformity with the requirements of Article III, paragraph 2, of the FCN Treaty. Before coming to a conclusion on that question it is necessary now to take into consideration certain other matters. 71. Article III of the FCN Treaty, both in paragraph 1 concerning rights to be enjoyed by the nationals of one party in the territory of the other, and in paragraph 2, concerning rights of nationals of one party to "organize, control and manage" corporations of the other party, contains the qualifying phrase, "in conformity with the applicable laws and regulations" of the latter party. It was argued by Italy that this clause confirms that the correct interpretation of that paragraph is that it was not intended to confer upon United States nationals any rights of control and management more extensive, or more extensively protected, than those enjoyed by other stockholders, of whatever nationality, in Italian companies. Therefore, it was said, the requisition was no breach of the rights conferred by the FCN Treaty, because its "invalidity . . .as ascertained by the decision of the Prefect of Palermo, does not alter the fact that it was issued by the competent authority on a regular legal basis". But, in the Chamber's view, the reference to conformity with "the applicable laws and regu-