The 2nd Division (New Zealand) arrived on the next day and forced the surrender of the 2,000 German Army troops holding out in Trieste, who warily had refused to capitulate to partisan troops, fearing they would be executed by them. An uneasy truce developed between New Zealand and Yugoslav troops occupying the area until British Gen. Sir William Morgan proposed a partition of the territory and the removal of Yugoslav troops from the area occupied by the Allies. Yugoslav leader Josip Broz Tito agreed in principle on 23 May, as the British XIII Corps was moving forward to the proposed demarcation line.