740.00119 Council/9–2046: Telegram
The Acting Secretary of State to the Chargé in Austria (Denby)
917. Paristel 4175, Delsec 966, reptd Vienna as 141; 4718, Delsec 967, reptd Vienna as 142, Sep 20; and urtel 1294, reptd Paris as 217 Sep 30.60 Dept has had several conferences with Erhardt on Ger assets problem. Dept approves Gruber’s submission third restitution law to Parliament and if law discussed in AC US representative should uphold right Aus to enact law without endorsement Aus definition Ger assets therein before US definition formulated and perhaps tripartite definition agreed upon. In event that Soviet declines implement law in Sov zone, you may at your discretion permit implementation law in your zone provided you consider it favors Am objectives.
Proposal urtel 1294 about simple formula defining assets acceptable in principle. Suggest you and Brit and France prepare joint draft for submission to your Govts. Dept meanwhile also formulating provisional definition which will be forwarded Vienna for your assistance.
Re Brit proposal Dept has little confidence that under present conditions Sovs disposed accept any suggestion contrary to their claim to determine themselves what constitutes Ger asset. In view Gruber [Page 374] preference to try Restitution Law now Dept suggests that Brit be approached to withhold their proposal at this time.
Advisability possible use Brit proposal later should be considered in tripartite discussions concerning definition. Believe that tripartite definition would in certain respects modify Brit scheme. Please consider advisability trying Brit proposal thus modified before actual implementation tripartite definition in Am Zone or green light on bilateral Sov-Aus arrangement. Employment tripartite definition in connection with possible bilateral Austro-Sov negotiations and its future implementation in Western zones is under urgent study by Dept, which feels final decisions will be affected by outcome conversations with UK and France.
In connection with Brit proposal, important include provision specifically stating that any property acquired by foreign power should be subject Aus law.
Sent to Vienna as 917; reptd Paris as 5451 Secdel 1096.
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