 Under the Treaty of Peace with Italy, 1947, the eastern border area was annexed by Yugoslavia causing the Istrian exodus, while Italy lost all its overseas possessions.The General Elections of 1946, held at the same time as the Constitutional Referendum, elected 556 members of a Constituent Assembly, of which 207 were Christian Democrats, 115 Socialists and 104 Communists.A new constitution was approved, setting up a parliamentary democracy.