740.00119 Council/12–447: Telegram

The United States Delegation at the Council of Foreign Ministers to President Truman, the Acting Secretary of State, and Others

confidential
urgent

6326. Delsec 1521. For the President, Vandenberg, Connally, Eaton, Bloom and Lovett. Ninth CFM meeting, December 4, Bevin presiding, discussed the Austrian treaty.6 Marshall pointed out that the US, UK and France had reached substantial agreement on a definition of German assets in Austria which are transferable to the USSR under the Potsdam Agreement. He noted that the USSR did not agree with the other three powers on this definition and asked Molotov several questions in an attempt to find out what the Soviet Union wanted from Austria. He stressed the necessity of solving the German assets question now in order that the conclusion of an Austrian treaty would not be further delayed.7 Bidault pointed out that France had made every effort to conciliate the USSR on this question but that it would go no further. Bevin intimated that Molotov was not dealing with the German assets problem on its merits but was using it to achieve other ends. He said he could not understand why the treaty was being held up, thus necessitating the retention of occupation troops in a liberated country. He pressed Molotov to state specifically the Soviet claims against Austria.

Molotov stated that he could not accept the views of his colleagues and contended that only his position was in conformity with the Potsdam Agreement and the Moscow Declaration. He accused the US of violating the sovereignty of Austria in providing economic assistance and said the US and UK had blocked an agreement between Austria and the USSR on the disposition of German assets in Austria. Marshall categorically denied Molotov’s charges, adding that the real purpose of such propaganda attacks is to disrupt the great cooperative movement that is being launched for the economic recovery of Europe.

Marshall asked Molotov whether the Soviet Delegation had any proposal to resolve the differences on this question other than that the three western powers reverse their firm convictions and agree to the Soviet position on German assets. Molotov replied that he could not accept the compromise offered by the French and merely repeated that the Soviet views on this question are known.

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Bevin said he was attempting to prevent complete deadlock in the CFM on this issue because of the unfortunate effect on Austria of further delay in completing the Austrian treaty. Molotov said he was prepared to accept 10% less than the amount of German assets to which the USSR is entitled. Bevin pointed out that Molotov was offering to take 10% off an unknown total and again asked Molotov to draft a concrete proposal. Molotov said he had no new proposals to offer.

In view of the lack of progress on Austria, Marshall proposed and the Council agreed to leave this subject and to consider tomorrow the next item on the agenda which is economic principles for Germany, the level of German post-war economy and plan for reparations.

Repeated to Moscow, Paris as 633, Berlin as 515, Vienna as 131, Rome as 162.

  1. Under discussion during this meeting of the Council was document CFM(47) (L)15, December 2, 1947, p. 798.
  2. For the text of the Secretary of Stated statement summarized here, see Germany 1947–1949, pp. 385–387, or Department of State Bulletin, December 14, 1947–pp. 1183–1184.