740.00119 Council/7–246: Telegram
The Acting Secretary of State to the Secretary of State, at Paris
3209. Secdel 390. For the Secretary from the Acting Secretary. On the basis of your recommendation, Gen Clark signed June 28 new control machinery agreement for Austria.27 US adherence to this agreement opens new questions with regard to our policy in Austria and the organization of US representation.
We regard new agreement as definite step forward in extending the authority and responsibility of Austrian Govt and establishing Austrian economic unity in so far as possible under continued military occupation. Zones are retained, however, as boundaries of spheres of authority of Four Powers and location of occupation troops. Article 6 gives Austrian Govt a large measure of legislative freedom and provides that agreements may be made with any one of the Four Powers without Allied Council approval, thus ending difficulties formerly inherent in unilateral exercise of veto power.
A departmental group is now engaged in studying possibility of concrete economic assistance to Austria under terms of this new agreement [Page 353] and will shortly make proposals designed to assist Austrian economic rehabilitation. Any proposal will be submitted to Paris for your consideration if agreement is reached in Dept prior to your return.
Allied Council, consisting of Four High Commissioners, will continue to exercise supervisory power on all matters except demilitarization and disarmament, military security of occupation forces, restitution of United Nations property, disposal of German property, authority over prisoners of war and displaced prisoners and war criminals. Control of travel by Austrian Govt and establishment of Austrian customs and frontier controls will be progressively established.
Allied High Commissioners may be either civilian or military and each of Four Powers is given specific right to appoint its Commander-in-Chief of occupation forces, diplomatic or political representative or any other official whom it may care to designate. Agreement also provides for Executive Committee composed of Deputies of High Commissioners. By terms of Article 7, Austrian Govt is free to establish normal diplomatic and consular relations with Govts of United Nations.
These provisions open question of US representation in quadripartite structure and seem to us to required decision in immediate future in order that continuity of Allied policy may not be disrupted. Gen Clark and his Deputy, Gen Tate, have done excellent work in representing US position in difficult task of carrying out Allied objectives in Austria. Since occupation forces will still be required, it seems to us that Gen Clark should continue in his present work with designation of US High Commissioner and Gen Tate be designated as his Deputy on the Executive Committee, You may wish us to approach the War Dept directly to ascertain its views.
It also seems desirable to us to take advantage of Article 7 and reestablish as early as possible complete diplomatic and consular relations with the Austrian Republic. Such action would distinctly contribute to recognition of Austrian independence and would facilitate negotiations on any possible economic assistance which may be extended by this Govt. Establishment of full diplomatic relations by Austria with other United Nations would also clarify Austria’s legal status and facilitate its possible entry into the United Nations, through which the Austrian state could participate in various international economic activities designed to promote European reconstruction.
The task of any US Minister in Austria is exceedingly complicated in view of military occupation and supervisory functions of Four Powers. The desirability of maintaining a continuity in these quadripartite functions indicates to us that if the US enters into full [Page 354] diplomatic relations with Austria, Erhardt should be designated as US Minister. A corresponding change would have to be made in the status of the Austrian representative in Washington.
We have no information on plans of other occupying powers on designation of High Commissioner or decision to establish full diplomatic relations. We are submitting these ideas for your consideration now, since both of these matters will have to be taken up with the War Dept and the President. In view of the record of US initiative in accomplishing the objectives of the Moscow Declaration, we consider it desirable for this Govt to take the lead in securing maximum advantages for the Austrian state under this new agreement.
- In Department’s telegram 607, June 27, to Vienna, Erhardt was advised that “Gen Clark has been instructed (War Dept 92657, June 26) to sign for US new control machinery agreement, including authority to accept French amendments.” (740.00119 Control (Austria)/6–2746) For text of the agreement, signed June 28, 1946, see A Decade of American Foreign Policy, Basic Documents, 1941–1949 (Washington, Government Printing Office, 1950), p. 614.↩