740.00119 EW/l–2246

Memorandum by the Chief of the Division of Central European Affairs (Riddleberger) to the Director of the Office of European Affairs (Matthews)

Mr. Matthews: General Clark and the Mission in Austria have submitted to the Department (Vienna 87, January 1929) a joint recommendation that a treaty be concluded to bring to an end the system of Four Power controls and to establish the complete national independence of Austria. This subject was also referred to by the Acting Secretary in his press conference of January 22.30

At the present time, Austria is still under the Four Power military occupation although the Government formed after the elections of November 25, 1945 has been accorded de jure recognition by the Four Powers.31 The United States, France and Great Britain have agreed to exchange political representatives with the Austrian Government and the Soviet Government has indicated its intention of a similar exchange in the near future.

The United States has taken the lead in proposing on an intergovernmental level a large-scale reduction of the occupation forces and an agreement on the interpretation of the Potsdam Declaration concerning the Soviet removal of German foreign assets in eastern Austria.

In view of the provisions of Article 14 of the Agreement on Control Machinery providing for a new international agreement following elections and the recognition of an Austrian Government, CE recommends that the United States propose to the other Powers the conclusion of a treaty to establish the complete independence of Austria and to define the interests of the Four Powers in the maintenance of that independence. CE concurs in the recommendations contained in Vienna’s 87 of January 19.

The following recommendations are submitted by CE concerning procedure for the conclusion of a treaty with Austria:

1.
That the Department propose to the British, French and Soviet Governments, with the concurrence of the Chinese Government, that the question of a treaty with Austria be placed on the agenda of the deputies and an agreed draft treaty prepared by them be submitted to the conference in Paris in May.
2.
That an American draft treaty be drawn up for introduction into the agenda of the deputies to contain the recommendations made by [Page 300] General Clark and the Austrian Mission in addition to any other points recommended by the Department. CE has already inaugurated an extensive research program on a possible draft treaty.
3.
That the Department consider the advisability of postponing the implementation of a treaty pending the conclusion of a Four Power Agreement concerning German foreign assets in Austria to determine what resources and assets will be available for an independent Austrian economy.

James W. Riddleberger
  1. Not printed.
  2. See New York Times, January 23, 1946.
  3. For a description of the events relating to recognition of the Austrian Government by the Four Powers, see Foreign Relations, 1945, vol. iii, pp. 693 ff.