740.00119 Council/4–2447: Telegram
The Secretary of State to the Acting Secretary of State
urgent
1545. Delsec 1470. For the President, Vandenberg, Connally and Acheson from Marshall. Second, third and fourth informal restricted CFM meetings on April 21 and 22 continued in closed session discussion [Page 378] of the Austrian treaty.17 Marshall stated that the issue of German assets in Austria affected so many other articles in the treaty that, unless they could reach a decision on that issue (Article 35), it was obvious that they could not settle many other points in the treaty. Molotov agreed to this thesis but said that the Soviet Government could not agree to reduce to naught the reparations which it was to receive from Germany. He continued that the Soviets were only claiming what was [were] German assets under the Potsdam Agreement and if that agreement harmed the interest of someone else not party to Potsdam, these interests should not be protected at the expense of the Soviet Union.
Molotov suggested possibility of agreeing to amendments of original Soviet proposal on assets, but declined to submit any amendments.
As to the Austrian boundary of Yugoslavia and reparations from Austria to Yugoslavia in accordance with Potsdam, Molotov said he was still not ready for further discussions because he had not yet had an opportunity to talk with the Yugoslav representatives in Moscow.
The results of these three closed sessions were negative insofar as agreement was concerned, so the Ministers resumed open discussion. It was agreed that the three closed sessions would be “off the record”.
Repeated London 186, Berlin 329.