863.6363/10–1845: Telegram
The Secretary of State to the United States Political Adviser for Austrian Affairs (Erhardt)
217. We agree reurtel 357, Part II,73 which was not available in drafting our 212 of Oct 2574 that oil situation requires level of negotiation higher than technical subcommittee.
US interpretation of Potsdam Agreement in accord USSR view that USSR now has right to claim ownership German assets Eastern Austria. It does not agree that forced transfers to German ownership on or after Mar 13, 1938 are valid. Reference should be made to United Nations Declaration of 5 Jan 1943.75 Your formula for implementation this position appears workable.
It is clear in fact that equitable segregation of Austria, USSR, and Allied property interests in Eastern Austria must take place by negotiation after detailed exploration of facts. Expansion Austrian oil production after 1938 in particular makes necessary such process. In proposing negotiation attempt immediate freeing domestic oil production Austrian current needs.
In general US interest is: (1) to protect legitimate US property interest and ensure satisfactory conditions future operation US owned properties: (2) to ensure Austria acquires equitable share expanded oil properties; (3) to ensure oil surplus to domestic Austrian needs available for export to acquire foreign exchange for Austria imports. In case of oil and other properties we should urge USSR to avoid [Page 641] removals or other action which would compromise rapid revival Austrian economy. In exercising claims to German assets in Western zones, we propose to follow this principle.
We will forward by early air pouch a suggested Dept interpretation of Potsdam IV, Para. 9, and definition of US property interest, for your guidance in negotiation.76 For your immediate information definition of USSR interest is German-owned property or German-owned share in property physically located in USSR zone of occupation. Presence of ownership documents in USSR zone would not entitle USSR to properties physically located in Western Zones. German assets such as deposits, claims, shares, etc., where physical location of property cannot be clearly determined, would be allocated arbitrarily, on best approximation to principle of physical location.
- October 18, 5 p.m., p. 630.↩
- Not printed; it instructed the Political Adviser to urge General Clark to propose the establishment of a Quadripartite Board to resolve the Austrian oil dispute. This board should, in consultation with the Renner government, determine: (1) how the provisions of the Potsdam Protocol could be carried out, (2) Austrian oil requirements, and (3) the interests of the occupying powers in oil exports as a means of financing imports. The Political Adviser was also instructed to stress the fact that any oil agreement between the U. S. S. R. and the Renner government was a matter of common concern to all of the occupying powers, but at the same time to acknowledge U. S. S. R. rights under the Potsdam Agreement to genuine German property interests in oil wells and equipment. (863.6363/10–1845)↩
- For text, see Foreign Relations, 1943, vol. i, p. 443, or Department of State Bulletin, January 9, 1943, p. 21.↩
- See telegram 10380, November 29, to London, p. 668.↩