740.00119 Council/8–1146: Telegram
The Acting Secretary of State to the Ambassador in France (Caffery)
4173. Secdel 691. Clark’s P–2461 of Aug 10, repeated to Paris, and Erhardt’s 1101 of Aug 11,46 repeated to Paris as Delsec 171 emphasize gravity present situation Austria, and urgency resolution impasse on German assets and nationalization.
US position is that while Potsdam provided possibility Soviet reparations from German assets Eastern Austria, Austrian decision to nationalize properties in Austria, which might convert reparations payments from ownership interests to (say) current output in goods, is consistent with Potsdam. Potsdam did not, in US view, provide that the Soviets should necessarily get long-run ownership interests, and Austrian sovereignty carries with it normal rights to nationalize on non-discriminatory basis, if compensation is paid. In view Dept, present impasse should be broken at high level as soon as feasible. First step might be early follow-up Paris by Brit on recent note to Moscow re quadripartite definition German assets, with consideration alternatives discussed Erhardt’s 1101 Aug 11, should Brit approach fail at this time. You may wish enquire Brit intentions in Paris.
Sent to Paris as 4173 Secdel 691; repeated to Vienna as 769.
- Neither printed.↩