13 Apr Trieste Agreement 1954
Between October 1947 and March 1948, the Soviet Union refused to nominate 12 governors, after which, on 20 March 1948, the three powers (the United States, the United Kingdom and France) issued a communication to the Soviet and Yugoslav governments recommending the return of the territory to Italian sovereignty. After the UN resolution, no governor was ever appointed. The territory has therefore never acted as a truly independent state, although its formal status has been widely respected and it has participated in the European Plan for Economic Recovery (ERP) and many international organisations (OEEC).  Area B has even published its own stamps. The break between Tito`s government and the USSR in mid-1948 led to the suspension of the proposal to return the territory to Italy until 1954. … Germany and Austria and the Trieste Agreement (1954), which provided for a division of free territory between Italy and Yugoslavia. After occupying Trieste in May 1945, the maquisards hoped their property would be insured, but the Allies forced the establishment of free territory in Trieste, consisting of an Area managed by Italy in and around the city and a Yugoslav area on the Istria Peninsula. In 1954, Tito…
Italy fought with the Axis powers during World War II. When the Fascist regime collapsed in 1943 and Italy capitulated, the territory was occupied by German troops who created the Adriatic coast area of operation, of which Trieste was the capital. The 4th Yugoslav Army and the 9th Slovenian Corps entered Trieste on 1 May 1945 after a battle in the town of Opicina. The 2nd Division (New Zealand) arrived the next day and forced the surrender of the 2,000 federal soldiers who were in Trieste and who had cautiously refused to surrender in front of troops of partisans, lest they be executed by them. A turbulent ceasefire developed between the New Zealand and Yugoslav troops occupying the area until British General Sir William Morgan proposed to divide the territory and withdraw Yugoslav troops from Allied-occupied territory. On 23 May, the head of the Yugoslav government, Josip Broz Tito, agreed in principle on 14 May 2007, 14 May 2003, 14 May 2004, 14 May 2003. On June 10, an agreement was signed in Duino for the creation of the Morgan line. Yugoslav troops withdrew until 12 June 1945.  Arrangements are being made by Italy and Yugoslavia to prematurely terminate the Allied military government, withdraw the US and British armed forces from the area under their occupation and take responsibility in the territories defined in today`s initial agreement.
(Department of State Bulletin, October 18, 1954, page 555) The free territory was de facto dissolved and handed over to its two neighbours (Italy and Yugoslavia) in 1954.