The Economy of the Free Territory of Trieste

American Geographical Society

The Economy of the Free Territory of Trieste Author(s): Leonard Unger Source: Geographical Review, Vol. 37, No. 4 (Oct., 1947), pp. 583-608 Published by: American Geographical Society Stable URL: https://www.jstor.org/stable/211187 Accessed: 17-07-2019 01:15 UTC JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.

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THE ECONOMY OF THE FREE TERRITORY OF TRIESTE LEONARD UNGER

HE Italian Peace Treaty provides for the establishmen

Territory of Trieste, independent of Italy and Yugosla

integrity and independence guaranteed by the Secur

the United Nations.' The treaty defines the boundaries of the

and sets forth principles for its government and the opera

Port and for certain aspects of its relations with other count

guarantees of the continued availability of certain essential supp

ties. The economic clauses include the following: The Permanent Statute of the Free Territory (Annex VI provides for an independent currency. It regulates aviation,

and the registration of vessels, and it guarantees that good

from the Free Port shall be accorded "freedom of transit" b ritory and by any state whose territory is traversed.

The Instrument for the Free Port of Trieste (Annex V the Free Port, free of customs, "in order to ensure that the

facilities of Trieste will be available for use on equal terms by al

trade and by Yugoslavia, Italy and the States of Centra

Instrument binds the Free Territory and the signatory cou

whose territories the Free Port's traffic passes to facilitate

of this traffic and not to apply any discriminatory measures

countries are also forbidden to take any measures "regarding

rates which would artificially divert traffic from the Free Port

of other seaports."

The Free Port Instrument also sets up an International C

oversee the operation of the port and transit facilities. The

other than the Four Powers and the Free Territory, reflect

the hinterland: Yugoslavia, Italy, Czechoslovakia, Poland Austria, and Hungary.

The treaty further guarantees (Annex IX) that Yugoslavi the supply of water to northwestern Istria within the Free

springs within Yugoslav territory. It provides for the cont 'Treaties of Peace with Italy, Bulgaria, Hungary, Roumania and Finland

(U. S. Dept. of State Publ. 2743 European Ser. 21), I947. An accompanying case of m

I of the Italian Peace Treaty; Annex II gives a detailed description of certain sec

Italian frontier.

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584

THE GEOGRAPHICAL REVIEW

?-e'"' '"'''a /. .:.:..

Padua pvenice a "Fiume

I. ^: * .:* . ' . 45. .,: 'P: ---s : : n sOSaher Pr/nc/pa/ rail connections ral is/Q 7balhn7

\ s \-.' * . * %, * **'. / y . ^S v ,QSud6ahn ? T rvisJo ( TuernPo :?'? ? c ~,"-? L~c~Oh r' :w v fz^y ^ ^^-^.* . Cit. .- J yN^-'':^- '-- Power sources:

A_ f^y^^ :" *c *P6? ^: tV ( i\?_A WDob6ar! OP/ava /veneto

~c/ \'-'.' ' * * - ';r ".*/*' \ *.' .(> v'f Tee Territory of Trieste

o 50 MILES . Boundaries: ' ' ' S KILOMETERS ..... Uder Italan Peace Treaty

GEOGR. REVIEW, OCT47 As of Se. ./, 939

FIG. i-Map showing railway connections and power sour

existing system that supplies electric pow

to the rest of Venezia Giulia. It stipulate

facilitate local trade between the Free

Territory and Yugoslavia. Annex X treats THE GENERAL SITUATION

Trieste lies at the head of the deep-penetrating Adriatic where it reache

almost to the borders of Danubian Europe. Through its port has moved in modern times, the larger part of the goods that landlocked Austri Czechoslovakia, and Hungary have sent abroad or have imported from overseas; and it is also the natural outlet for the immediately neighboring regions in Italy and Yugoslavia (Fig. i).

The comparative railroad distances of Table I point the natural advantage for Danubian traffic of any port at the head of the Adriatic. It has been Trieste, however, rather than Venice or Fiume, that in modern times has

reaped the principal benefit of this position. Trieste is closer to the Postumia Gate than the other two ports and is connected with it by a relativel

easy route. This pass (2020 feet), lying between the Julian Alps to the nort

and the Dinaric Alps to the south, provides the lowest and perhaps th

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THE FREE TERRITORY OF TRIESTE

585

easiest route between Mediterranean and Danubian Euro

Bosporus and the Rhone Valley breach."2 The situat

important in ancient times. The Postumia Gate was well k even as far back as the Argonauts.

Trieste is thus situated in a transitional region between

and Danubian environments. Climate, vegetation, langu

many related factors, although predominantly influenced b TABLE I-DISTANCE BY RAIL IN KILOMETERS

Trieste Fiume Venice Hamburg Vienna 555 553 635 987

Budapest 607 605 ... 1328 Prague 828 826 88i 640

Ljubljana 129 127 ...

Munich 552 ... .. 739

Belgrade 677 ... ... 1802

and Italian elements, partake also of ma istics. This transitional situation endows

variety and provides the contrasting en

But it has also heightened the rivalry to

from time to time in history, by linkin several directions.

THE PHYSICAL SETTING

The city of Trieste lies on the northern

stone hills that slopes steeply from the K

to the sea (Fig. 2). The oldest part of the

the harbor; the newer parts stretch out

and on neighboring hills and slopes lead

The Karst Plateau, made up of very thic

limestone, has almost no surface drainag

off in underground streams fed through

stone hills which underlies the city of Tr

form the northern Istrian coast line is a

relief with level land only where deltas

at the edge of the water. In its heart ar

Dominating the Bay of Pirano and the D

is the escarpment of a lower karstic plate

2 E. C. Semple: The Barrier Boundary of the Medite

Factors in History, Annals Assn. of Amer. Geogrs., Vol.

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' ,Ronch hi FREE TERRITORY

_Monfal0cone OF TRIESTE

Shli,d imavo Spro o MILES

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Ias ^ fpars& Pas - ea a C no FIG. 2-Theer Territory of Trieste and its

economic featu

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as far west as Umago and Cittanova.

Italian Boundary Problems: A Review, Geogr. Rev., Januar

586

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CITY AND PORT OF TRIESTE G u I f

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fl/a Refinery * * . . To DiVaCcia GEOGR. REVIEW, OCT. 1947

FIG. 3-The city and port of Trieste. Key: A, old general cargo cargo port (Emanuele Filiberto, Duce d'Acosta); C, timber wharf

San Andrea (foundry and engine works); 2, Arsenale Lloyd; 3, cr 5, jute and hemp works; 6, Gaslini vegetable oil refinery; 7, Ang San Sabba refinery.

587

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588

rHE GEOGRAPHICAL REVIEW

remaining corner of the Free Territory. Near Buie

plateau is crossed by a secondary belt of sandstone hil

to southeast. The southern boundary of the Free Territ

rather spectacular flat-floored valley of the Quieto Ri sharp break in the plateau.

It is estimated that the total area of the Free Territo

treaty is 276 square miles or 716 square kilometers. Th

for about 80 miles, and the land boundary for 57 miles

The climate of the Free Territory falls roughly in based mostly on altitude. Along the seacoast and in

tected places the climate is that of the Mediterranean, slightly colder than in peninsular Italy and rainfall is

rather than summer drought.3 At higher altitudes Cen

ences are evident-appreciably colder winters and heavi

pronounced summer deficiency. A sharp boundary run

dividing the vegetation of these two environments. Th

tory blows the infamous bora,4 a northeast wind that m

Ioo miles an hour. In a steady blast lasting for several

cipitously drains the cold air lying over the Karst Plat

Basin in winter into depressions appearing over the Adr Where soils have developed they reflect the type of

the limestone is terra rossa, characteristic of Mediterra sandstone the soil tends toward the fertile brown fores

the Po Plain and Western Europe. But over the larger p

the soils are thin and stony, especially in the high rock

where the extreme porosity of the underlying rock con

landscape of sparse scrub vegetation and bare white lim

painstakingly removed from the fields is to be seen eve

and buildings. In northwestern Istria soils are usuall

much interspersed stony material. The best soils as rega

ment and absence of rocks are in a belt of terra rossa of Istria.5 3 Trieste has an average of 42 inches of rain a year, with an October maximum and a January minimum. January temperatures average 39.4? F., July 740; the mean maximum is 94?, the mean mini-

mum 23?; days with frost range from 5o to I00. See E. Alt: Klimakunde von Mittel- und Siideuropa (Handbuch der Klimatologie, Vol. 3, Part M), Berlin, 1932, p. I8I; also Giotto Dainelli: Atlante fisico economico d'Italia, Milan, 1940, Plate 1.

4 See E. R. Biel: Climatology of the Mediterranean Area, Univ. of Chicago Inst. of Meteorology Misc. Repts. No. 13, 1944, pp. 20-23. s Norbert Krebs, edit.: Atlas des deutschen Lebensraumes in Mitteleuropa, Leipzig, 1937, Plate 4,

"Die B6den," by H. Stremme and W. Hollstein.

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THE FREE TERRITORY OF TRIESTE

589

THE HISTORICAL SETTING

Historically, too, Trieste is in a contact zone, "an area of convergence of contending and expanding political powers."6 Roman Tergeste, founded

by Augustus in the first century before Christ on a site already occupied by the Romans for a hundred years, became a walled strong point of the frontier province of Venetia and Histria, protecting routes from the Venetian

plain to the Dalmatian coast. Other Roman settlements were the predecessors of the present towns of northwestern Istria. The disintegration of the Empire

left the Trieste region exposed to barbarian attack; between incursions the Patriarchate of Aquileia and the Byzantine Empire reasserted their authority.

For a time the region was included in the Frankish Empire of Charlemagne;

and when this in turn fell apart, it was replaced by a feudal regime under warring barons whose headquarters usually were outside-in Friuli, Austria, or Istria. The rise of the rival Venetian Republic and Hapsburg Empire had by the middle of the fourteenth century set a pattern for the region of the

Free Territory that persisted until Napoleon's time: Trieste and the Karst Plateau were tied to Central Europe across the Alps as part of the Austrian

domain; northwestern Istria became a part of the Republic of Venice.

Despite the nearness of the Queen of the Adriatic, Trieste fell under her sway for only a few short periods; in fact, in 1382 Trieste sought Austrian

protection against Venice, in an effort to avoid complete surrender to the Venetian monopoly over Adriatic trade and the overland connections with inland Europe.

The division between Italy and Austria is apparent to the present day.

In northwestern Istria "the pattern of life in the coastal towns and their

immediate environs was largely determined by Venetian influence, in a region where few human activities, other than seafaring and its ancillary occupations, are possible."7 Trieste, on the other hand, shows few Venetian influences and partakes to some degree of the character of a Central European city.

Until the seventeenth or eighteenth century Trieste and Istria functioned

primarily as local economies, mostly self-sustaining. Most of the trade moving to the Danube Basin used the Pear Tree Pass. For several centuries 6 A. E. Moodie: The Italo-Yugoslav Boundary, London, 1945, p. 56 (reviewed in the Geogr.

Rev.,Vol. 37, 1947, pp. 140-141). Other references consulted on the history of Trieste are: Stjepan Srkulj:

Hrvatska Povijest (Croatian History), Zagreb, 1937; "La Marche Julienne," Institut Adriatique, Susak, 1945; National Liberation Committee of Venezia Giulia: Geographic, Ethnic and Economic Problems of Venezia Giulia [submitted at Trieste to the Commission to Investigate the Italo-Yugoslav Boundary] 1946; G. Gratton: Trieste, clef de voute de la paix, Paris, 1946.

7 Moodie, op. cit., p. 62.

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590

THE GEOGRAPHICAL REVIEW

the population of Trieste probably remained about the 30

I202. Any potential economic development had to cont

that the region, "with no political identity of its own, yet suf

military incursions of three of what had become the Grea

time [Venice, Austria, and the Ottoman Empire], . . . was tated and its people, already occupying a territory where

were often reduced to conditions of appalling poverty an

FIG. 4 (left)-General view of Trieste from the Castle hill.

FIG. 5 (right)-Looking north from near the Castle to Opicina on the Kars the right distance is the new university building.

As far back as the seventh and eighth centuries, Slavic t

the region of the Free Territory from the east, and some

permanent settlements. Their numbers were supplem

Ottoman advance through the Balkan Peninsula by refug

as far north as this and settled in the inhospitable karst they could find room.

MODERN DEVELOPMENTS

Perhaps the first recognition in modem times of the potential comm

importance of Trieste came when Charles VI of Austria proclaimed free

of navigation on the Adriatic in 1717 and declared Trieste a free port 1719. Trade with the Austrian hinterland began to grow. In 1768 a Ven 8 Ibid., p. 66.

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THE FREE TERRITORY OF TRIESTE

591

commission characterized Trieste as a gran magazzino, whereas i ly been a miserabile luogo.9 Schiffrer says of it at a slightly later The traffic in goods at Trieste is more and more lively and is beginning

number of stevedores, wagoners, etc. The newly created Austrian merch

sailors, laborers for the shipyards, for construction and public works, etc. All t

the prosperity and the increased demands of a rapidly expanding city, contri

Trieste a powerful urban center of attraction.'0

FIGS. 6 AND 7-Views in the old town. On the left the Arco di Riccardo, an arch of A.D. On the right a steep street climbing to the Castle.

No marked increase in the trade of the port came until th

the nineteenth century, when Trieste was chosen as the seawar the Siidbahn, Vienna's railroad to the sea. The line, built acro

terrain by the Austrian government, reached Trieste in I857.

time an artificial harbor was constructed. The shipping an

perience acquired over the centuries by Istrians and Dalma

stood the port in good stead on the threshold of its major de

Traffic through the port in gross tonnage of ships was 8

206,597 in 1820, and 321,049 in 1830. In this period the ships w

Italian. In I860, three years after the Siidbahn was comple reached a total of 717,293. In 1869 the Suez Canal was open 9 "La Marche Julienne" (op. cit.), p. 207.

0O Carlo Schiffrer: Le origini dell'irredentismo triestino, Udine, 1937, p. I8.

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592

THE GEOGRAPHICAL REVIEW

FIG. 8 (left)-The castle with ruin of the Roman basilica in the foreground.

FIG. 9 (right)-The arena.

came a remarkable increase to 960,103 tons in 1870; tonnage

I890, 2,I58,624 in 900o, and 5,480,074 in 1913. At this last Austrian flag were most numerous, British second.

Concomitantly, commerce and industry in Trieste grew

proportions. Commerce took advantage of the variety

that Central Europe shipped out and of the colonial produc

bulk from all over the world and were largely processed a port for shipment inland or, sometimes, for reshipment to

ranean port. Industry centered around the Cantieri, the sh built the Austrian merchant fleet and some of the naval ve

In the peace settlement after the First World War, Italy

with the cession by Austria of what became Venezia Giu the proposed Free Territory of Trieste. Between the tw

the rail and water traffic of Trieste remained approximatel

in the later Austrian period, though with considerable fluct

for example, the tonnage of shipping using the port w ships were almost all of the Italian flag." Industry, on

increased far above the Austrian level, and there were introd

oil refinery, an iron and steel works, a much-expanded

petroleum-refining industry, and a machine, crane, an Shipbuilding, however, remained the principal industry the modem canneries at Isola d'Istria and Umago were e

peasant farmers lost easy access to the Austro-Hungarian m wine and other Mediterranean products and, moreover, fo

obliged to participate in the "battle of wheat"; northwe many of its vineyards cleared out and sown to grain.

" Pierpaolo Luzzatto-Fegiz and others: L'economia della Venezia Giulia, U Istituto di Statistica, Trieste, 1946, p. 88.

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THE FREE TERRITORY OF TRIESTE

593

FIG. IO (left)-The castle and the old town from the roof of the Casa del Popolo.

FIG. II (right)-Piazza della Borsa on the day of signing of the Peace Treaty, Feb. II,

During the Second World War the city of Trieste suffered less

damage than many other European cities, though the port wareho

especially, the principal shipbuilding yard and petroleum refin

badly hit. After liberation from the Germans the city was occupied

Yugoslav Army for about a month in the spring of I945. It has sin

administered by Allied Military Government. The part of north

Istria, however, that is to be included in the Free Territory has re under Yugoslav Military Government.

POPULATION

According to the Italian census of I936, the area contained within the boundaries provided for the Free Territory of Trieste in the Italian Peace

Treaty had a population of about 343,000oo. Of this total, 248,000 lived within the commune of Trieste, which consists of the city and its suburban

area. The other urban agglomerations are minor; the three larger are Capo-

distria (7Io5), Isola d'Istria (6777), and Pirano (5724). Muggia, Buie, Umago, Cittanova, and Verteneglio are the remaining towns, ranging in population from 3000 down to iooo.12 The rural population of the Free Territory numbers about 70,000. It is concentrated in the south; in the north the inhospitable Karst can support only a meager scattering of agriculturists-

perhaps io persons to a square kilometer.

Along with the economic development of the city of Trieste that began

in the early eighteenth century, its population grew rapidly, especially in the later years of the nineteenth century. At the opening of the eighteenth

century the city is reported to have had 600 houses and 5700 people on 34 hectares; in 1785 it had 20,300 people; in 1802, 27,576; in 1857, 104,707; in 12 Italian census of April 2I, 1936, adjusted by the Trieste Communal Office of Statistics to correspond to Free Territory frontiers.

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THE GEOGRAPHICAL REVIEW

594

-ii: 1 - -~~

FIG. 12-The ILVA steel works.

FIG. I3-Customs harbor from the Castle.

I900, 176,383; and in I92I, 236,449.I3 Supplementing the growth

natural increase, immigration swelled the population. In 1921, 42 per

of the inhabitants of the city had been born outside the region (Ven

Giulia)-14 per cent from Italy (pre-World War I boundaries); ab

per cent from the Gorizia region and another Io per cent from Istria

Dalmatia; and 7 per cent from elsewhere in the former Austro-Hung

Empire. Earlier immigration had already established in Trieste a colony of considerable importance in numbers and economic influ

and also groups of Armenians, Albanians, Turks, Egyptians, Swiss, Cz Poles, and Jews.

The ethnic character of the Free Territory population has been the

ject of innumerable studies and, in the past year, of international inve tions and debates. The Austrian census of I9IO and the Italian census of

indicate that the sparsely settled Karst Plateau, extending from the

frontier to the city of Trieste, is inhabited primarily by Slovene far

Trieste itself is predominantly Italian; but a Slovene minority, w

contributes a large number of the industrial workers, lives in the ind

suburbs and peripheral area and in neighboring communes to the

In northwestern Istria the townspeople are overwhelmingly Italian; mo the rural inhabitants are also Italian, but there are some Slovene and

Croat agricultural communities, especially in the highly dissected hil the interior.

Industry is the most important employer in the Free Territory, oc

ing in 1940 about I6 per cent of the total population and about one-thi

the employed population (45 per cent of the total population are emplo

Commerce and transport and communications come next with abo

per cent, and agriculture with 9 per cent. Of a total of some 56,ooo w

in industry, more than 47,000 are in Trieste commune; Muggia, an ou

I3 p. Luzzatto-Fegiz: La popolazione di Trieste (I875-I928), R. Universita . . . di Trieste, Is Statistico-Economico, Trieste, 1929, pp. I5-I6.

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595

THE FREE TERRITORY OF TRIESTE

II

,i

.1

FIGS. 14 AND 15-A "bora" day in Trieste, February, I947.

of the Trieste industrial area, has 3000, and Capodistria, Duin

and Pirano have each about Iooo. The transport and comm

are also concentrated in Trieste, which has 39,000 of the 43,00

employed; Pirano is the only other commune with as many a

than two-thirds of the agricultural workers (3I,ooo), however

Istrian communes, where, characteristically, from 30 to 35 per

total population are active in agriculture.'4 RAILROADS AND POWER

The Siidbahn forms Trieste's most important link with the hinterland, carrying over its double-track, electrified line the largest part of the rail traffic. A cutoff from Divaccia shortens the last leg of the Siidbahn as it descends into Trieste from the Karst, and provides direct connection with the modern port. Trieste is also linked to Central Europe by two other lines.

The first, completed in I885, passes through Gorizia, Udine, and Tarvisio

and provides access to western Austria and southeastern Germany. The Tauernbahn, completed in I909, climbs the Isonzo Valley north of Gorizia

and tunnels twice through the Alps, to provide a somewhat shorter route to

Vienna and to Salzburg and Bavaria. To reach Austria the Sidbahn crosses

Yugoslavia, the Tarvisio route crosses Italy, and the Tauernbahn both.

The construction of all three lines was very expensive, and they have rarely

paid their way in any strict accounting sense. According to Italian State Railways statistics these three lines can handle a daily traffic of 36,000 tons.

Trieste is also linked to Italy by a double-track line across the Venetian plain, to Fiume by a connection that leaves the Siidbahn at San Pietro del

Carso, to Pola by a line that traverses the center of the Istrian peninsula, and

to Gorizia by a second line, which leaves from the south station (Campo Marzio) and climbs northward over the Karst behind the city.

'4 "Population as of 15-6-I940 According to Activity Groups of the Communes of the Proposed Free Territory of Trieste," Dir. of the Communal Office of Statistics of Trieste, Feb., 1947 (Table).

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Adequate to good highways follow these same general routes, but

economic importance, except locally, is not great at present. However

the Istrian section of the Free Territory there are no operating railr and transport must be by motor vehicles and coasting vessels. Much

fish, wine, vegetables, and fruits from northwestern Istria seen in T

markets has arrived on small boats from Isola d'Istria, Pirano, or Capod

There are at present no operating airports in the Free Territory,

Zaule port having been out of use for some time. At least two new fav sites are under study, and one may be improved in the near future.

The Free Territory is destitute of domestic sources of fuel and po

One coal mine at Sicciole, near Portorose, produced in I945 betwee

and 500 tons a month of a good quality of bituminous coal. It was estim

that this could be raised to 2000-3000 tons if the proper pumping fa

were installed to keep the mine free of water.'5 The Territory's e

requirements were recognized in the peace treaty by the guarantee to T

of an uninterrupted supply of electric power from the sources on wh

has been accustomed to draw in the past (Annex IX). The two pri

sources-contributing roughly equal amounts-have been the power sta

of the middle Isonzo River (Doblari and Plava) and the Piave-Santa

group of stations in the Veneto; both formed part of the well-integr north Italian power grid. The Isonzo plants lie in territory to be cede

Yugoslavia, the Veneto plants will remain in Italy. According to stati

of the Societa Adriatica di Elettricita the area constituting the Free Ter

of Trieste has consumed on the average about I5o million kilowatt-ho electric power a year; industrial reconstruction and recovery might

this figure to 280 million. Seasonal variations are pronounced: the Iso stations are counted on heavily in the spring and autumn; the Veneto

is of prime importance in midwinter and summer. As a safeguard ag the failure of either or both of these sources the construction of a wat

thermal station to keep the Triestine economy in steady operation m considered advisable.

THE PORT OF TRIESTE AND ITS TRADE

The Port of Trieste extends for about eight miles along the Gul

Trieste and the Bay of Muggia. It consists of two highly organized, spec

equipped ports for the handling of general cargo; a customs port betw these two for passenger traffic, the fishing fleet, cold storage, and lo

business; and a string of wharves and docks along the north shore of Mu Is Estimate, I946, by the Trieste Chamber of Commerce.

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THE FREE TERRITORY OF TRIESTE

597

Bay devoted to shipbuilding, ship repairing and outfitting,

petroleum, iron and steel manufacturing, and vegetable-oil r

bulk of the transit traffic goes through the general-cargo por up two of the four customs-free zones of the Port of Trieste.

period the older port was called Vittorio Emanuele III, the n

Filiberto, Duca d'Aosta. The other two free zones are specialize

wharf handling the export of timber from Yugoslavia an the San Sabba petroleum harbor, with storage facilities and a

The older of the general-cargo ports lies at the terminus o

and was constructed mainly in the period I867-1883. It can t a draft of 26 feet and has four basins, with ample wharfside

houses alongside served by rail. The new port was begun tow

of the Austrian period, but no substantial part of it was read

after the First World War, and only two of the three great m

a little more than Iooo feet in length) called for in the plan h pleted. This port takes ships with a draft of about 29 feet. It was fully loaded Liberty and Victory ships came in recent years with

of UNRRA goods for Yugoslavia, Czechoslovakia, and Aus on to the older port when partly unloaded. The warehouses

equipment along the docks are of the most modem design and

to the great variety of commodities that flow across the wh

port is the grain silo which will accommodate as much as grain and which can unload about 3500 bushels an hour.

Before the recent war 18,700 tons of goods a day could be

these two ports, and 282,000 tons stored. The potential hand

is reduced, however, by the difficulty of intercommunicati

means is a one-track line along the water front. In Triest

I7,000 people employed in transport and communications wo and its facilities.

Who trades with Trieste and through Trieste? During the

cussions of the Italo-Yugoslav frontier, claims and countercl

forward. Actually, the hinterland of the port lies mainly bey

tains, in Austria and Czechoslovakia, which contributed r

and 20 per cent of the rail traffic to and from the port in 1

contributed 25 per cent. The other percentages were: Hun

slavia, 6; Germany, 5; and Switzerland, 3. 6 The new boundar in the Peace Treaty bring some of the territory on which t

was based into Yugoslavia, and much of it into the Free Terr

I6 Rodolfo Bernardi: Trieste Traffic in the Light of Official Statistics, Trieste, 19

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598

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During the days of the Austro-Hungarian Empire, Trieste,

the principal port, had little difficulty in attracting a large par

nubian and Central European overseas trade. In I9Io, for e handled 2I per cent of Austria's overseas imports and I8 per

exports. Moreover, its location and political advantages were st by a system of so-called "Adriatic rates," which set up special

vantageous to the users of Trieste. At the close of the Austria traffic had reached the all-time high of 3.4 million tons, almo

quite equaled in 1938, and rail traffic had risen to 2.7 million to

subsequently only once, in 1924.

Between the World Wars Trieste found itself cut off politi

the larger part of its hinterland and in competition with the highly

German North Sea ports, which were being assisted by a variet

and economic devices. Moreover, the era of economic nati

self-sufficiency was at hand, and the total volume of trade was

One factor in Trieste's favor was that the Adriatic rates were at leas

ly kept in force in much of the hinterland, as treaty obligatio

port managed even to maintain its position in this period is so of its natural advantages.

Because of its entrepot service to neighboring Adriatic ports,

of the processing industries in the city itself, more of the goo

through Trieste come and go by water than by rail. It is difficu

statistics, to designate any particular overseas areas as the natur

trade with Trieste, since shipping lines in Fascist Italy had carefully

routes and such factors as the Ethiopian war also distorted the t

Nevertheless, Trieste has an obvious natural advantage in trade

Mediterranean area, the Near and Far East, and South America

its hinterland. On the other hand, goods moving across the No

or through the North and Baltic Seas would reach all but the n

of Trieste's hinterland more easily by way of North Sea and B

In I937-I938 water-borne traffic to and from Trieste was as fo

30 per cent; Levant and Black Sea countries, I6; East Indies a I4; United States, II; Netherlands, 7; Argentine Republic, 4.

The principal commodity moving through the port before petroleum, both crude and refied, and its products, about 9 in 1938. More than half came from the United States and Latin

the British East Indies and the Levant supplied most of the re

troleum (some was refined in Trieste) moved principally to Au and Switzerland.

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THE FREE TERRITORY OF TRIESTE

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The trade in metallic ores was 670,000 tons in I938. T

chiefly from Northwestern Europe, the Levant and Black

and North Africa (presumably iron); Austria supplied magne some zinc from the Predil mines near Tarvisio. Austria, Italy

slovakia took a large part of these ores, and a great deal was

Trieste industry. The magnesite went chiefly to the United S

Austria and Yugoslavia shipped large amounts of timb Trieste, and Austria and Czechoslovakia sent wood products,

cardboard, and wood pulp. In I938 these commodities totaled

tons. They were shipped from the port to almost all its over

About 440,000 tons of iron and steel passed through Trieste,

Austria, Czechoslovakia, and Northwestern Europe and go

to Italy. Coal, from Northwestern Europe, the United K Czechoslovakia, was next in importance-about 350,000 t Almost all of it was either consumed locally or forwarded to

Oil-bearing seeds and fruits were imported in large quant transit, part for consumption in the local refinery and shipment

oil and oil cake. Of the 260,000 tons in I93 8, the largest amou

the British and Dutch East Indies and India; they were shipp

to Austria and Italy, but also to Switzerland, Yugoslavia, and

Fresh and dried fruits and vegetables, sugar, cereals, and r

respectively, the next in importance, with tonnages ranging

to Ioo,ooo in I938. Italy aid the Levant countries contribu

part of the fruits and vegetables (including citrus), and thes

to Czechoslovakia, Germany, and Austria. The sugar came alm

from Czechoslovak beets; the cereals from Latin America, Hu

Black Sea countries; and the cotton from Egypt and Turk States, and India. The Levant countries and Africa (presum

African colonies of Italy) took most of the sugar, Austria and Ital

and the whole range of hinterland countries, but principally the raw cotton.

The trade of Trieste is clearly weighted heavily on the commodities. Coal and minerals account for about a quarter

ment of goods, petroleum for about I5 per cent, and cere per cent. If timber, wood pulp, oilseeds, sugar, and cotton a into account, it is apparent that considerably more than hal trade is composed of heavy, relatively low-value goods.

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must be given also to the skill and broad experience of it traders. These men have contacts throughout Central Europe all over the world. They know at any given time where

obtained, who will buy them, and at what prices; they have e

and banking arrangements and insurance facilities; they kno

should be packed and shipped, billed, and accounted. Th separated producer and consumer have often found it easier

the Trieste merchant to move goods. The independent trader such bright prospects, however, because of the increasing use

state trading companies, and it is probable that this group will be

less importance in coming years. According to the 1936 census

were employed in commerce in Trieste-a high proportion per cent.

MANUFACTURING AND PROCESSING

The Free Territory of Trieste is small enough to permit the study of its

individual industrial enterprises. Most of the industries have obvious con-

nections with the port, while almost none of them depends on the resources

of the surrounding countryside. The Cantieri Riuniti dell'Adriatico is the organization of predominant importance in Trieste, and also in Monfalcone,

just across the new Italian boundary to the north. The Cantieri is made up

of several separate enterprises, dating from the early nineteenth century,

which were assembled in 1930 into one firm. In Trieste, and across the bay in Muggia, the Cantieri has two shipyards with nine ways in all and a dry

dock. Two of the ways can build ships of 50,000 tons, and two of Io,ooo tons. These yards are not as modern as those in Monfalcone, and the San Marco yard was severely damaged by bombing. Nevertheless, they are already turning out a number of vessels, and orders to keep the yards busy

for several years are reported to have been placed already. Under Italian rule the larger part of the output was taken by Italy, but ships also were sold all over the world.

Of the materials for the shipyards, those of local manufacture include

some of the rougher steel plates fabricated at the ILVA plant (iron and steel),

the Diesel and other nonelectric engines, and various cranes and other lifting

and carrying equipment; almost everything else is imported. In this connec-

tion two of the other Cantieri enterprises in Trieste may be introducedthe Fabbrica San Andrea and the Officine Ponti e Gru. The former is a foundry that casts heavy metal and machine parts and constructs the largest

and most moder types of Diesel marine engines, steam turbines, and ships' auxiliaries. It produces both for the near-by shipyards and for export. The This content downloaded from 78.12.167.12 on Wed, 17 Jul 2019 01:15:14 UTC All use subject to https://about.jstor.org/terms

THE FREE TERRITORY OF TRIESTE

6oi

second enterprise, the crane and bridge works, has provid myriad cranes and hoists that line the wharves of Trieste

other ports all over the world. It has also supplied the mater

ing skill for the construction of bridges, tanks, and the l

Central Europe and as far away as Egypt and South Am

additional sources of foreign exchange for the Free Territ

all the raw materials that go into this production must be i

local skilled labor and management should be able to contr

keep these industries prosperous. All told, the Cantieri en

today about I5,000 men in Trieste and Muggia.'7

Next in importance is the group of industries that proces

imports from overseas and re-export the refined or manuf

It is estimated that 30 per cent of the goods passing throu

handled in some fashion by these industries. Chief among th

and vegetable-oil refining, jute and hemp milling, tobacco

and coffee roasting. The raw materials come in general fr

small capital and unskilled labor by cheap ocean transport. I

interest of economy to reduce their bulk and increase the

of weight before starting them on their overland journey well equipped to perform this function.

When, in the I88o's, petroleum and its products first bec

a refinery for crude petroleum was built at San Sabba. from time to time and supplemented with storage facil

eventually constituted as the fourth of the free zones of th

as a result of the greatly increased importance of oil, a ne

refinery was built across the bay from San Sabba, the refining capacity before the war was 350,000 tons of cr year, and its storage capacity Ioo,ooo cubic meters; San

tons and 67,000 cubic meters.'8 Italy normally took about 7

total production. Aquila was severely damaged by bombs b to be about ready to begin operations again in the spring fineries employed about 570 men, about 300 at Aquila and

The war years saw a substantial development of petroleu in Hungary and Austria. Austria had been the destination

cent of the oil that passed through, and was refined in, Tri

not unlikely, therefore, that some reduction in this trade w

'7 Luzzatto-Fegiz and others, op. cit., p. 76; and information in the files o Government, Venezie Giulia.

I8 These and following figures from statistics in the files of the Allied M

Venezia Giulia.

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602

THE GEOGRAPHICAL REVIEW

Oilseeds are pressed in Trieste at the Gaslini mill, near shipyard. There is also a mill at the head of Muggia Bay,

present but might be brought back into use. The oil is expresse

seed, linseed, soya, sunflower, copra, and other vegetable-

normal output has been about 45,000 tons of edible oil and

cattle food a year; an average of several hundred workers

Italy has taken the entire output of vegetable oil in the pas

The jute and hemp factory (Jutificio e Canapificio)

mostly jute from India for the manufacture of ropes, gun

the present time, however, it is limited mainly to hemp, s

this from Italian domestic production. The plant finds a r

its products in the ships and warehouses in the harbor of T

Mediterranean ports, and in the binding and sacking requ agricultural hinterland.

Tobacco has its work space in one of the port's warehou

leaf from Greece, Russia, and Turkey is split, sorted, and ot

for reshipment, and Trieste has thus become the regional

though it manufactures no tobacco products. Supplies

tobacco are often purchased here. Manipulating the tobacc

ment to as many as 3500 people. Food industries depen imports to produce for a larger market than the local one are

liqueur distilleries, a large brewery, and some jam and conf facturing.

ILVA is a subsidiary of a large Italian firm of the same name. The Trieste plant consists of six blast furnaces (five electric), a steel mill, and a coke and

gas works. The annual output for I938-I940 included 150,000 tons of pig iron, 70,000 tons of steel ingots and plates, and I70,o00 tons of coke. The by-products were 25 million cubic meters of gas for Trieste, ammonium

sulphate, benzine, tar, and slag. The only locally available raw material for the blast furnaces is limestone. Coal has usually come from the Ruhr or

Czechoslovakia. Italy has supplied some of the iron ore, but the larger part

has come from North Africa, Yugoslavia, and elsewhere. ILVA products are high-cost ones, but in Italy, which lacks most of the natural prerequisites

for a steel industry, Trieste was perhaps better situated than many places.

Part of ILVA's output is taken by the shipyards-about I5,ooo tons of the rough steel plates. Most of it, however, has gone to Italy; whether this will also be its future market depends a good deal on the customs arrangements set up between the Free Territory and Italy. Other markets for

these iron and steel products, when once the present world shortages have

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THE FREE TERRITORY OF TRIESTE

603

been met, are not so apparent, though the industries able to take a substantial part of the output. ILVA em workers.

There are several industries in the Free Territory outside the city of Trieste that are worth noting. Principal among these are the canneries of the Ampelea company at Isola d'Istria and of the Arrigoni company at Isola and Umago. These three plants are fairly modern and well equipped. They are devoted chiefly to the preserving of fish, but the Arrigoni plants have

undertaken the preparation of tomato paste, meat extracts, and jams and marmalades as well, for which they manufacture their own cans. The plants

are all at the water's edge, where they receive from the fishing boats the anchovies, sardines, pilchards, tunny, mackerel, and herring from Mediter-

ranean (primarily) and North Sea waters. The tomatoes and fruits come mostly from the surrounding countryside. Central and Danubian Europe, as well as Italy, have taken the products of these canneries and may be expected to continue to do so. When working at capacity, the plants employ

more than a thousand persons. They are a sure buyer for the fishermen of the region, some of whom are also employed on shares.

The building of wooden ships may well date from Roman times in Istria,

but it certainly flourished in the Venetian period. Today there are still in operation several yards that build fishing boats and other wooden craft of high quality-Capodistria, Isola d'Istria, and Pirano have each such a

yard-and find a ready market in the neighboring ports and among the

local fishermen.

There is also a large saltworks just south of Pirano, which takes advantage

of the extensive marshes at the mouth of the Dragogna River. These have been diked and regulated for flooding and drainage, and the hot summer sun does the other necessary work. Venice depended on this salt for many centuries; it is now sold widely in the region.

The cigarette-paper industry in the city of Trieste completes the roster of Free Territory industries. This has supplied a substantial fraction of the

cigarette-paper requirements of the Italian tobacco monopoly; the rough paper comes from Italy.

SHIPPING, INSURANCE, AND TOURISM

As goods moved in increasing amounts through the port of Trieste, an incentive was afforded for the development of local shipping companies to transport them. In addition, there were the hundreds of thousands of Central European emigrants, especially in the later nineteenth century and early This content downloaded from 78.12.167.12 on Wed, 17 Jul 2019 01:15:14 UTC All use subject to https://about.jstor.org/terms

604

THE GEOGRAPHICAL REVIEW

twentieth, who came to Trieste to embark for America. Su

Austrian Lloyd, founded in 1836, and Cosulich, an independ

in I903, became known throughout the world. After the F

Cosulich continued under the same name; the Austrian Lloyd Triestino and in the I930's was largely taken over by

Many other lines were established in this period, and it is

most of the owners in themselves reveal one of the princip

shipping skill and experience of Trieste, namely the men f of Lussino, which lies off the southeast coast of Istria. Cosu

are Tripcovich, Premuda, Martinolich and Gerolimich. represented today in almost every important enterprise in

The war took its toll of Trieste shipping and has left the

with almost no ocean-going ships. There are many evid

that the old shippers are ready to start again, and they and som

will probably be able to rebuild the merchant marine to a rather soon. Additions to the existing business may come

peace-treaty clause that permits the registry in Trieste of ships

vakian, Swiss, and, later, Hungarian and Austrian merchan

A useful adjunct to the shipping industry is the Arsenale

the San Marco shipyard, where all kinds of ship repairs are

The Austrian period saw the growth in Trieste of a numb

companies. Two have become world-famous and are perhap insurance businesses on the Continent-the Assicurazioni Ge in 1831, and the Riunione Adriatica di Sicurta, founded in

however, these companies, their world-wide assets and busin

severely curtailed by the war and the peace treaty, will pla

in coming years; because their fmancial ties are now chiefly

have recently decided to move their headquarters there, th offices will remain in Trieste. In the past the offices of the

nies have employed about 2500 persons.

Those Central Europeans who can afford it look to t vacation place, in summer and in winter. Here are swim sunshine, and generally pleasant weather. The Free Ter

direct rail connections, can attract some of this resort and

and to some extent it is provided with facilities to care fo

principal resort is Portorose, in a protected site on the sou

peninsula at the tip of which Pirano stands. It would seem t also make into tourist attractions the castles at Miramare an

pleasant towns of the Istrian coast, with their Venetian charact

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THE FREE TERRITORY OF TRIESTE

605

facilities. Moreover, the unique status of the Free Territ

draw intergovernmental conferences and international me

and other groups.

RURAL ECONOMY AND FISHING

Rural economy clearly will play only a small part in the life of the Free Territory, with its infertile soil, yet the agricultural community has some significance in the food and exports it can contribute. As was noted earlier, the country east and north of Trieste offers little to the farmer because of the

infertility of the rocky, porous, highly calcareous soil of the Karst. Farms here average between five and ten hectares, and only about 5 per cent of the farm area is sown to crops, principally potatoes, hay, beans, and rye.'9 In many parts cultivation is confined to the dolini, at the bottoms of which

enough moisture and soil have collected to make plowing and planting worth while. Most of the rest of the land is in permanent pasture or sparse, scrubby

woods, and the remainder is entirely unused. Some vineyards, orchards, and

vegetable gardens are found in favored spots on west-facing slopes where the Karst drops sharply to the sea, especially near the city of Trieste.

In northwestern Istria the Dragogna Valley and the restricted lowlands around Capodistria and Isola d'Istria are devoted to an intensive, commer-

cialized farming on very small holdings, usually between two and five hectares. Potatoes, fresh vegetables (cabbage, cauliflower, asparagus), and tomatoes are the main crops; a part of these has customarily been sold to Central and Northern European markets when such products were out of season there. Wine (also for export), cherries, figs, peaches, maize, beans, and olives are also produced here, and dairying is of some importance. In this part of the Free Territory is found the most intensive use of land, the commune of Capodistria having more than 60 per cent of the total area of farm and woodland sown to crops.

Farther to the west, around Umago and Buie, agriculture more closely approaches the Mediterranean type. Vineyards, olive groves, wheat, beans, and some fruit trees predominate. Farms are slightly larger, averaging about

five hectares. The pasturing of sheep assumes more importance. On the average, between 30 and 60 per cent of the land is in cultivation.

As might be expected, agricultural yields are generally low. Wheat yields, for example, average less than 10 quintals to a hectare, as compared

with more than 25 in the Po Valley; potatoes yield fewer than 50 quintals to a hectare, as compared with about I5o in the Po Valley. Vine and I9 Dainelli, op. cit., Plate 39.

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THE GEOGRAPHICAL REVIEW

fruit-tree yields, however, are relatively higher.20 Most o the Free Territory own their own land.

In sum about I7,500 hectares in the Free Territory is un

and an additional 8900 is in vineyards, orchards, and the lik

that on this land the following chief crops were prod average, in quintals a year: grapes, 280,000; potatoes,

9I,000; corn, 90,0ooo.2 If Zone B only is considered (south Line in northwestern Istria), the following information is 9600; olives, 5000; barley, 2200; fruits, 2000.22

The Free Territory is not well forested, and forest activ a minor role in its economy. Forests occupy about I7,700 additional land useless for other purposes could be refores

dependence on wood imports.

In 1937 about 30,000 tons of bauxite was extracted in the

deposits lying east of Umago and Cittanova. These are so

thoroughly worked-out of the Istrian bauxite deposits, an may be expected to decline.23

Fishing ports, large and small, line the coast of the Fre

send their fleets out into the Adriatic. The fishing ground

Trieste coast are said to be "one of the richest fishing zones

seas."24 An average yearly catch of about 4500 tons is brou sisting primarily of sardines, pilchards, and mackerel. All t

sumed locally, either fresh or canned. Isola d'Istria, wi canneries, is the principal fishing port; Capodistria and next. Much of the fishing is well organized, and the larger

is taken from motor ships. Much of the pilchard fishing i

with the aid of lamps. Shellfish are locally important, espec

ofMuggia Bay at Zaule, and some are sufficiently well know

The chief types are oysters and mussels.

There are 60,000 to 65,000 persons actively engaged in, o

agriculture, hunting, and fishing in the Free Territory. The

on the Karst, if not too far removed from transit faciliti much time working in Trieste as in tending their farms;

fishing may occupy much of the farmer's time. Inland 20 Ibid., Plates 42, 47, 50 and 5i.

21 Statistics in the files of the Allied Military Government, Venezia Giulia.

22 Statistics of the Yugoslav Military Government.

23 Umberto Sorasio: Notizie sui giacimenti di bauxite istriani, Trieste, 1946; an files of the U. S. Department of State.

24 Luzzatto-Fegiz and others, op. cit., p. 59.

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THE FREE TERRITORY OF TRIESTE

607

especially in the hilly country, are the exclusively agricultural communities where a much higher proportion of the daily necess raised on the farm. Here life may still revolve around a closely bu

town perched on a hilltop as protection against the enemies that hav it since the end of the Pax Romana.

ECONOMIC OUTLOOK

The Free Territory of Trieste will consist essentially of a city w

well-developed industry and a moder port serving an extensive hinterla

in Danubian Europe. Around the city lies a small territory with few resou

and a production that can meet only a fraction of the requirements of Free Territory's population and industries.

The local agricultural production can supply Trieste with an estimat

I85,ooo quintals of cereals and limited quantities of potatoes, vegetables

fruits, wine, and fish. But it is estimated that to feed the population o

the Free Territory in the coming year about 530,000 quintals of cereals w

be required, as well as many other foods. This requirement makes up abo

one-fourth, in value, of the goods and services that must be imported keep the Free Territory alive and functioning.

The electric power to operate industries and utilities and to prov light and heat is transmitted from the Isonzo stations and the Veneto;

must be paid for. This is also true of the water supply for northwester

Istria. Together these make up about 2.4 per cent of the import require ments. Coal is needed from outside as well, some for the ILVA furnaces

other industrial uses, some for heating, and some for bunkering the sh

that use the port; this will use up roughly 7 per cent of the import bud

The industries of Trieste are almost entirely dependent on imports their raw materials-chiefly oilseeds and fruits, crude petroleum, iron o and scrap-and for machinery and equipment, and these items add 50 pe cent to the mounting bill. Lastly there is the variety of consumer good including tobacco, which the population demands. Many commodities ar fabricated locally, but such major needs as textiles and clothing must b brought in from abroad-I4 per cent more added to the import bill.

In the past much the largest part of the above-mentioned goods cam from Italy, and much will certainly continue to do so, but the existenc a political and fiancial barrier between Italy and the new Territory

undoubtedly divert some of the latter's buying to other sources. How ext

sive these changes will be depends on the nature of the barriers, not on

vis-a-vis Italy, but also with Yugoslavia and elsewhere. The new situatio This content downloaded from 78.12.167.12 on Wed, 17 Jul 2019 01:15:14 UTC All use subject to https://about.jstor.org/terms

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THE GEOGRAPHICAL REVIEW

may also reduce Italy's formerly extensive purchases of g

in the Free Territory, but to what extent it is impossible to

The goods and services which the Free Territory can abroad in the coming year will, it is optimistically esti meet the necessary expenses for imports from abroad, if

found for these products. An important source of inco

perhaps 22 per cent, is the sale of the products of the shipyard

industries related to the Cantieri. ILVA could account for

and the petroleum and vegetable oil refineries, the canneries, t

and several smaller enterprises for an additional 40 per ce

of the port earn Trieste Io per cent more and the shippin

per cent. Agricultural and miscellaneous exports contribu

cent. These estimates are derived principally from the con

Trieste Commission of Inquiry, which studied the econ

Trieste in January and February of 1947 under instructions

of Foreign Ministers.

It is clear that Trieste's economic position is dependent

free movement of goods in world trade. Any strong trend

nationalism, especially in the countries of the hinterland, c

the prosperity of the Territory, where any thought of s

obviously absurd. Moreover, the Territory is exposed to v

economic discrimination, which might be applied for

and which could reduce the business of the port far below

for economic operation, given its present development an ment.

But there is no doubt about the natural economic advantages that Tries

has as the funnel for imports and exports of Danubian Europe, and a

processor of the goods that pass through this funnel. If reasonably amicab

political conditions prevail and world trade can be restored to the levels

the period before the World War just past, the Free Territory can expec

to provide its citizens with useful work and a satisfactory level of living.

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