740.00119 Control (Austria)/2–1048; Telegram

The Secretary of State to the Legation in Austria


116. Brit memo1 received Jan 13 stresses need for long-term economic planning in Aus coordinated with political objectives of US and UK, and proposes secret informal discussions of US–UK in Vienna, with addition Fr and Aus representatives at appropriate time. Preliminary meeting US–UK would discuss constitution of informal working party on economic policy, terms of reference, approach to Austrians for cooperation, and timing of approach to French. Brit propose to instruct Southam, of ACABrit, to conduct talks for them.

Dept has agreed to such preliminary discussions but has suggested that they be held in London in view of forthcoming discussions Austrian deputies which will to large extent determine type of long-range economic problems that must be met and for which experts will come to London. Dept understands Southam will be in London for German assets negotiations. Trust that AmLeg and USFA reps participating in Aus deputies work will also be available for such preliminary discussions with Brit. Anticipated that discussions in London will be followed by more detailed substantive examination of problems in Vienna.

Sent Vienna as 116; rptd London as 429.

  1. Not printed.