662.6331/275: Telegram

The Consul at Geneva ( Gilbert ) to the Acting Secretary of State

106. Consulate’s 67, May 1 [19], 6 p.m. This morning Schober in a statement made in public session of Commission for European Union outlined the situation with respect to Austrian commercial policy in its relation to European cooperation and made the following declaration concerning the Austro-German Customs Union:

“The Austrian Government saw from the events of the past months that, contrary to their intentions, difficulties might arise in the way of trusted cooperation of European nations through the application of the Customs Union scheme; therefore, the Federal Government in whose opinion the interest in this cooperation is closely connected with the interest of Austria, declared that they resolve to pursue no further the project of the Customs Union”.

This declaration was followed by a speech [by] Curtius who stated that irrespective of the decision of the Permanent Court Germany and Austria had decided to pursue no further the Customs Union project in view of the more general plan for European cooperation now before the Commission as set forth in the reports of the subcommittees, particularly that of the Committee of Economic Experts which he felt gloved [sic] as a final goal the establishment of a European Customs Union.

The French, Italian and Czechoslovak delegates expressed appreciation of the spirit animating these declarations and laid stress upon the influence that this decision would have in restoring confidence in Europe and on the development of European cooperation.

It is generally believed here that Schober’s declaration is made with fore-knowledge of a Permanent Court decision unfavorable to Austria.

Gilbert