740.00119 Council/4–148: Telegram
The United States Deputy for Austria at the Council of Foreign Ministers (Reber) to the Secretary of State
1301. Delsec 1651. From Reber. Analysis of current Soviet tactics in making concessions on lump sum and attempt to center discussion on this one aspect of their proposal on German assets demonstrates importance of forcing Soviets to discuss other unagreed issues in treaty. USDel’s telecon proposal was designed to do this and to forestall any prolonged wrangling on specific points in Article 35. In Austrian opinion, lump sum question has assumed symbolic importance as the test of settlement, only equaled by frontiers and military clauses. Failure of western states to make equivalent move on this question will increase feeling in many Austrian quarters that western states do not desire treaty.
USDel considers therefore, that telecon proposal would have following advantages as a tactical move:
- 1.
- It would be a dramatic proof to Austrians that US is willing to reach agreement. At same time, USDel considers that its proposal is not “a summary disposition” of Article 35 since it is our intention to reach agreement on percentages and figures of oil settlement, to provide an approach to solution of DDSG, and to fix lump sum subject to necessary reservations before turning Article 35 to AC for further elaboration of detail.
- 2.
- It would place Soviets in position of accepting a liberal settlement of assets question and prevent a return in deputies to interminable and profitless discussion of “principle.”
- 3.
- It is only device foreseeable at this time for turning discussion to other articles, requiring Soviets to state position on other aspects of Austrian sovereignty and independence, which in USDel’s view have equal importance with provisions of Article 35.
- 4.
- Agreement in principle on Article 35 with appropriate reservations along lines of Deptel 11161 and transference of discussion to another forum would force Soviets to give specification to demands in terms of properties involved and precise exemptions from Austrian law. USDel considers that such a discussion would not only be valuable in defining in detail Soviet objectives in Austria but, taking place in Vienna in consultation with Austrian Government, would also curb Austrian ardor to assume any obligation whatsoever to get rid of Soviet troops. Discussion would provide a guide for any future bilateral agreement which Soviets will undoubtedly demand for implementation of settlement. At same time, discussion of details in AC would still permit Four Power control of assets discussion. Similarly, reference to AC will not be interpreted as US unwillingness to conclude agreement provided a step forward is made here to meet Soviet demands and discussion is continued in London on other unagreed articles.
- 5.
- In terms of previous instructions and views of USFA and American Legation Vienna, this proposal would still permit the continuation of military occupation as security force in Austria and would give renewed authority to AC in associating it with Austrian treaty settlement.
In view of these considerations, as well as approach of Soviet figure to maximum position outlined in February 11 memorandum,2 USDel would appreciate review of instructions in Deptel 1116 taking into account Austrian question as a whole since we are convinced that continued discussion on gap between Soviet and western positions on Article 35 alone will ultimately provide political advantage in Austria only for Soviets. USDel requests authority depending upon outcome of talks with British and French to enable it either to agree to 150 million lump sum payment in one gesture or to propose another specific figure. French deputy has shown inclination to move in latter direction. We consider that an exact position is preferable to an expression of willingness to increase sum provided SovDel accepts various conditions, which as today’s meeting has (again demonstrated, SovDel will not discuss until agreement is reached on sum and time limit.
Sent Department as 1301, repeated to American Legation Vienna as 48.