1987 by the United States Government is inadmissible because local remedies have not been exhausted. B. If not, to adjudge and declare: (1) that Article III of the Treaty of Friendship, Commerce and Navigation of 2 February 1948 has not been violated; ( 2 ) that Article V ,paragraphs 1 and 3, of the Treaty has not been violated; ( 3 ) that Article V, paragraph 2, of the Treaty, and the related provisions of the Protocol to the Treaty, have 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 (6) that no other Article of the Treaty or the Supplementary Agreement has been violated. C. On a subsidiary and alternative basis only: to adjudge and declare that, even if there had been a violation of obligations under the Treaty or the Supplementary Agreement, such violation caused no injury for which the payment of any indemnity would be justified. And, accordingly, to dismiss the claim." 12. The claim of the United States in the present case is that Italy has violated the international legal obligations which it undertook by the Treaty of Friendship, Commerce and Navigation between the two countries concluded on 2 February 1948 ("the FCN Treaty") and the Supplementary Agreement thereto concluded on 26 September 1951, by reason of its acts and omissions in relation to, and its treatment of, two United States corporations, the Raytheon Company ("Raytheon") and The Machlett Laboratories Incorporated ("Machlett"), in relation to the Italian corporation Raytheon-Elsi S.P.A. (previously Elettronica Sicula S.P.A. (ELSI)), which was wholly owned by the two United States corporations. Italy contests certain of the facts alleged by the United States, denies that there has been any violation of the FCN Treaty, and contends, on a subsidiary and alternative basis, that if there was any such violation, no injury was caused for which payment of any indemnity would be justified. 13. In 1955, Raytheon (then known as Raytheon Manufacturing Company) agreed to subscribe for 14 per cent of the shares in Elettronica Sicula S.P.A. Over the period 1956-1967, Raytheon successively increased its holding of ELSI shares (as well as investing capital in the company in other ways) to a total holding of 99.16 percent of its shares. In April 1963 the name of the company was changed from Elettronica Sicula S.P.A. to "Raytheon-Elsi S.p.A."; it will however be referred to hereafter as "ELSI". The remaining shares (0.84 per cent) in ELSI were acquired in April 1967by Machlett, which was a wholly-owned subsidiary of Raytheon. ELSI was established in Palermo, Sicily, where it had a plant for the production of electronic components; in 1967 it had a workforce of