I found this passage about the Lateran treaty in a book called European History Since 1870 p.487-488
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The Settlement of the Roman Question
Fascism inherited from its predecessors the long-standing problem of Italy’s relations with the Vatican, a problem which Mussolini was especially eager to solve. In October, 1926, the Duce through an intermediary expressed to Pope Pius XI his strong desire to enter into negotiations for the purpose of eliminating the existing state of hostility between the church and the state. The delicate negotiations which ensued eventually resulted in an agreement between the papacy and the Italian government, and on February 11, 1929, a treaty, a concordat, and a financial convention were signed in the Lateran Palace by Cardinal Gasparri, papal secretary of state, and by Mussolini.
By the terms of the treaty Italy recognized the state of Vatican City under the sovereignty of the pope. The Vatican City was to have its own coinage system, postage stamps, wireless, and railway station, and the right to send and receive ambassadors. Its territory was always to be considered neutral and inviolable; freedom of access to the Holy See was guaranteed for bishops from all parts of the world; and freedom of correspondence with all states, even with states which might be at war with Italy, was assured. Furthermore, the privilege of extraterritoriality was granted outside the Vatican City to certain churches and buildings used by the Holy See for its administration. Finally, the person of the pope was declared to be as sacred and inviolable as that of the king.
In the concordat Italy recognized the Holy Catholic Apostolic and Roman religion as the only state religion in the country. The Italian government bound itself to enforce within its territory the canon law – that is to say, the laws relating to faith, morals, conduct, and discipline prescribed for Catholics by church authority. Matrimony was recognized by the state as a sacrament regulated by canon law, and thereafter, if certain regulations were observed, the state would recognize the legality of marriages performed by priests. Religious instruction, formerly excluded from the secondary schools, now became compulsory in both elementary and secondary schools, and was to be given by instructors selected by the bishops and maintained by the state. The election of bishops was also further regulated. Formerly they were appointed by the church subject to the approval of the state, which paid their salaries; thereafter the state’s role would be restricted to the right of objecting to an appointee for political reasons. Ordained priests, moreover, were exempted from military obligations. In the convention the pope accepted 750,000,000 lire ($39,375,000) in cash and 1,000,000,000 lire ($52,500,000) in 5-per-cent government bonds “as a definite settlement of all its financial relations with Italy in consequence of the fall of temporal power.” Finally, the Holy See declared the Roman question irrevocably settled and therefore eliminated, and recognized the Kingdom of Italy under the House of Savoy, with Rome as the capital of the Italian state. On June 7 ratifications of the treaties comprising the settlement were exchanged in the Vatican by Cardinal Gasparri and Mussolini. Six months later the Chamber of Deputies voted that September 20, the anniversary of the taking of Rome in 1870, should be supplanted as a national holiday by February 11, the anniversary of the signing of the Lateran treaties.
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