740.00119 Council/3–648: Telegram

The Secretary of State to the United States Deputy for Austria at the Council of Foreign Ministers ( Reber ), at London

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793. Ausdel 2. For Reber. As you are probably aware from Army cable to Milattaché London,1 JCS has given opinion that from military point of view treaty which would involve troop withdrawal is undesirable in light of newest Soviet action in Europe. In formulating earliest decision which must take full account of both political and military factors, we would appreciate any supplementary views you, Keyes and Erhardt may wish to offer next day or so.

In the meantime with considerations in mind put forward in Delsec 1614, Mar 6,2 Dept authorizes you to use proposals in Feb 11 memo3 on oil and DDSG for a compromise offer by one of Western delegations. Re DDSG you should understand offer should not foreclose any possible US claim to German assets in company. You should remain firm in accordance with Feb 6 memo on lump sum settlement and supremacy of Austrian law and should also insist that all disputed issues arising from interpretation of Article 35 after coming into force of treaty should be settled in accordance with Article 574 or otherwise by quadripartite agency. These three issues with reference to German assets problem seem best tactical ones to choose for defensible position in interest of preserving Austrian political and economic independence.

(Sent London 793; repeated Vienna as Depts 197 Personal for Erhardt and Keyes Eyes Only)

Marshall
  1. Not printed. For the opinion of the JCS see telegram 844, March 10, to London, p. 1474.
  2. Supra.
  3. Not printed. For a summary of the proposals in the February 11 memo see Delsec 1614, supra (footnote 4).
  4. Article 57 provided that any dispute over the interpretation of the Treaty should be settled by direct negotiations between the interested parties, or failing that should be referred to a Commission of the two states and a mutually acceptable third state; if the two parties could not agree on the third state, they could request the Secretary-General of the United Nations to appoint the third party.