740.00119 EAC/4–1345: Telegram
The Ambassador in the United Kingdom (Winant) to the Secretary of State
[Received 8:30 p.m.]
3783. Cornea 218. In connection with Soviet insistence on inclusion of a reparation division in control machinery for Austria, discussion turned to principle of Austrian reparation at last night’s meeting [Page 60] of the EAC. Gousev requested answer on principle to question reported in my 347, April 5, 5 [8] p.m. My attitude in the discussion was based on Department’s 2794, April 10, 7 p.m.
In reply to Gousev’s query Strang stated UK view that Austria should not escape obligation of reparation as matter of right but that Allied political aim of reestablishing independent Austria should be guiding factor; payment for imports regarded by four powers as necessary for Austria should have precedence over reparation transfers. Massigli similarly pointed out need to decide later whether Austria can pay reparation and how much.
Strang asked whether affirmative reply in principle to Soviet query should not be accompanied by reservation of view or how much Austria could pay. In one exchange Gousev asked whether trade or reparation was basis of Allied policy in Austria. At close of discussion Massigli proposed a formula by which Austria as a former component part of the Reich would be bound to make compensation for damage done to the Allies, while the four governments, having in mind their intention to restore an independent Austria, retain complete freedom of judgment regarding the amount and method of such compensation. The Commission agreed to study this formula.
Gousev’s insistence on acceptance by EAC of the principle of Austrian reparation has thus for the moment given the French representative an opening for securing discussion of this question at a four power level. Early in the discussion Gousev had stated that the EAC should merely adopt the principle, without entering into negotiation on implementation.