740.0011 EW (Peace)/10–248: Telegram
The Acting Secretary of State to the Legation in Austria
798. In discussions with Reber in London and Paris Brit and Fr agreed in principle with US initiative concerning resumption Aus treaty negotiations that proposal will be made to Sov at first favorable moment. Brit and Fr concur that further clarification Berlin situation necessary prior to any move by western powers. No basis exist for Aus report from London urtel 1113 Sep 291 that US holding back as question was addressed to Brit in first instance.
Dept discounts Bischoff’s report2 as AmEmbs Moscow and Belgrade do not agree that Sovs will abandon Yugo claims or that frontier difference can be settled by bilateral arrangements. Views presented by USFA in separate message represent in general Dept’s position on considerations involved in concluding Aus treaty at this time. While resumption negotiations may be necessary in terms Aus public opinion negotiations at this stage might result in increased Sov pressure on Vienna to obtain settlement prejudicing conditions agreed by western states and Aus as basic for maintenance independence. Possible future development Sov controls in satellite areas should also be evaluated by Aus prior to despatch of any note to western powers.
Dept will consider Gruber’s proposal for approach to Sovs no later than November but reserves position entirely pending development of SC discussions on Berlin.