CFM Files: Lot M–88: Box 74

Unagreed Articles of the Draft Austrian Treaty

secret

[Editor’s Note: The following are the unagreed articles of the draft Austrian State Treaty as it stood when quadripartite discussions were suspended after the 110th meeting of the Deputies for Austria on May 6, 1948, as indicated by the records of the United States delegation at these discussions. The brackets indicate unagreed text. All numbered notes to the articles correspond to the notes in the final [Page 1515] report of the Austrian Treaty Commission to the Council of Foreign Ministers, October 11, 1947 ( Foreign Relations, 1947, volume II, page 632). These notes were submitted by the Deputies as correct statements of the positions of their delegations on these articles at the time the present report was submitted. All unnumbered notes were inserted by the United States Delegation and were not agreed statements unless otherwise indicated. For text of the agreed articles see ibid., page 516.]

Article 2 Preservation of Austria’s Independence (1)

[1. The Allied and Associated Powers declare that they will respect the independence and territorial integrity of Austria as established under the present Treaty.] (2)

[2. The Allied and Associated Powers shall oppose any action, in any form whatsoever, that may threaten the political or economic independence or the territorial integrity of Austria, and in event of such threat will consult with one another and with the appropriate organs of the United Nations with regard to appropriate action.] (3)

(1)
Soviet Delegation considers this Article unnecessary.
(2)
Proposal by United States Delegation. United Kingdom and French Delegations will accept this paragraph in order to obtain agreement.
(3)
Proposal by French and United States Delegations.

Note: The United States Deputy stated at the 101st meeting that if the first paragraph of this Article was accepted, his delegation would be prepared to withdraw its proposal for the second paragraph (CFM/D/L/48/A/101st meeting, April 22, 1948, Record of Decisions.)

Article 5 Frontiers of Austria

[The frontiers of Austria shall be those existing on January 1, 1938.] (1) (2)

(1)
Proposal by United Kingdom, United States and French Delegations.
(2)
The Soviet Delegation regards as well founded the proposals of the Yugoslav Government concerning the reuniting of Slovene Carinthia with Slovenia (which is part of Yugoslavia), and regarding the Slovene frontier districts of Styria as well as with regard to the conferring of a special status on the Burgenland Croats, ensuring their national rights, as proposed in the Yugoslav memorandum which was submitted to the Council of Deputy Foreign Ministers in London on January 22, 1947.
Note: The Soviet Deputy at the 108–110th meetings supported the revised Yugoslav territorial claim (CFM/D/L/48/A/8, April 27, 1948) as being well founded and just, but stated that his delegation was prepared in the interest of early settlement of the treaty to consider proposals by the other delegations which take into consideration the legitimate interests of Yugoslavia. This would mean each delegation would drift from its extreme position. He added that he thought the legitimate interests of Yugoslavia require some rectification of the present frontier.

section v

Article 16 Displaced Persons [and Refugees] (1)

1.
Austria undertakes within the period determined by the Allied Commission for Austria to take all necessary measures to complete [Page 1516] the [voluntary] (1) repatriation of Displaced Persons [and refugees] (1) within its territory.
2.
Austria undertakes to render full assistance to the Allied and Associated Powers concerned in regard to the [voluntary] (1) repatriation of their nationals and [may](1) [shall] (2) enter into direct bilateral negotiations for this purpose.
3.
Austria further undertakes:
(a)
to permit accredited representatives of any Allied or Associated Power whose nationals are in camps or assembly centers allotted to Displaced Persons now in Austria to visit [freely] (3) such camps or centers for the purpose of conferring with its nationals;
(b)
to prohibit in such camps or centers any propaganda hostile to the interests of the Allied and Associated Powers and any activities designed to induce such Displaced Persons not to return to the countries of which they are nationals;
(c)
to dissolve immediately any [“committees”, “centers” and other similar] (2) organizations existing in those camps and centers that may be found to be engaged in activities opposed to the interests of the Allied and Associated Powers;
(d)
to prohibit the recruiting of Displaced Persons [and refugees] (1) into military or paramilitary organizations [such as security detachments and guard units] (2);
(e)
to provide the means of transportation necessary for the transfer of repatriates to the frontier of their countries or origin nearest Austria.
4.
Austria undertakes to grant to such Displaced Persons [and refugees] (1) the same rights in all respects as those normally accorded to non-Austrians who have been legally admitted into Austria.
[5.
Neither Austria nor any international organization allowed to function on Austrian territory shall give any relief to persons who for hostile reasons refuse to accept help from the Government of their country and refuse to return to their native country.] (2)
6.
This Article shall be applied without prejudice to the provisions of Article 11 of the present Treaty.
[7.
No Displaced Persons or refugees who have expressed objections to returning to their countries of origin and who do not come within the provisions of Article 11 of the present Treaty, shall be compelled to return to their country of origin.] (4)
(1)
Proposal by the French, United Kingdom and United States Delegations.
(2)
Proposal by Soviet Delegation.
(3)
Proposal by Soviet and French Delegations.
(4)
Proposal by United States Delegation, acceptable to United Kingdom Delegation. The French Delegation is not opposed to the inclusion of this paragraph but wishes to point out that it would be superfluous if the word “voluntary” was included in paragraphs 1 and 2 of this Article. The Soviet Delegation objects to the inclusion of this paragraph.
Note: See Appendix I for texts of United Kingdom position at end of Moscow CFM and Annex VI.
[Page 1517]

Article 26 Disposal of War Materiel of Allied and German Origin

1. All war materiel of Allied origin in Austria shall be placed at the disposal of the Allied and Associated Power concerned according to the instructions given by that Power.

Within one year from the coming into force of the present Treaty Austria shall render unusable for any military purpose or destroy:

all excess war materiel of German or other non-Allied origin;

in so far as they relate to modern war materiel, all German and Japanese drawings, including existing blueprints, prototypes, experimental models and plans;

all war materiel prohibited by Article 21 of the present Treaty;

all specialized installations, including research and production equipment, prohibited by Article 21 [and 27] (1) which are not convertible for authorized research, development or construction or which are in excess of those necessary for the military requirements defined in Articles 17 and 25 of the present Treaty.

2. Within six months from the coming into force of the present Treaty Austria shall provide the Governments of the Soviet Union, of the United States of America, of the United Kingdom, and of France with a list of the war materiel and installations enumerated in paragraph 1.

3. Austria shall renounce all rights to the above-mentioned war materiel.

[4. Austria shall not manufacture, acquire or possess, either publicly or privately, or by any other means, any war materiel of German origin or design.

This does not forbid the use of such restricted quantities of war materiel of German origin or design remaining in Austria after the Second World War as may be required for the creation of the Armed Forces authorized by Article 17 of the present Treaty.] (2)

[Austria shall not manufacture any war materiel of German design.] (3)

[4. Austria shall not manufacture any war materiel of German design.

Austria shall not acquire or possess, either publicly or privately, or by any other means, any war materiel of German manufacture or origin except that the Austrian Government may utilize, for the creation of the armed forces authorized by Article 17 of the present Treaty, restricted quantities of war materiel of German manufacture or origin remaining in Austria after the Second World War.] (See note below)

5. A definition and list of war materiel for the purposes of the present Treaty are contained in Annex II.

(1.)
Proposal by French Delegation, with which the Soviet Delegation agrees. The United States and United Kingdom Delegations oppose this proposal.
(2)
Proposal by Soviet Delegation, which is opposed by United States, United Kingdom and French Delegations.

Note: It was the understanding of the US Delegation at the Moscow CFM that all delegations were agreed that paragraph 3 of this Article refers only to the first subparagraph of paragraph 2 of this Article.

(3)
Proposal of United States Delegation, with which the French and United Kingdom Delegations agree.

Note: United States proposal informally submitted at 102nd meeting. The Deputies noted in the Record of Decisions for that meeting that “all Delegations were in agreement on the principle contained in this draft, but that the final wording should be determined at the drafting stage.”

Article 27 Prevention of German Rearmament

1.
Austria shall co-operate fully with the Allied and Associated Powers in order to ensure that Germany is unable to take steps outside German territory towards rearmament.
[2.
Austria undertakes to abide by the limitations and prohibitions listed in Annexes III, IV and V of the present Treaty.] (1)
3.
Austria shall not employ or train in military or civil aviation or in the experimentation, design, production or maintenance of war materiel:

persons who are, or were at any time previous to March 13, 1938, nationals of Germany;

or Austrian nationals precluded from serving in the Armed Forces under Article 18;

[or persons who are not Austrian nationals.] (2)

(1)
Proposal by French Delegation, with which the Soviet Delegation agrees. The French Delegation, while adhering in principle to its position, is ready to reexamine certain points of detail in the Annexes III, IV and V when Article 27 is under discussion by the Council of Foreign Ministers in London. The United States and United Kingdom Delegations oppose the inclusion of this paragraph and its annexes.
(2)
Proposal by Soviet Delegation, opposed by the French, United Kingdom and United States Delegations.

Part IV Claims Arising Out of War

section i

Article 34 Reparations

[The Allied and Associated Powers declare that they will advance no claims for reparation from Austria on their own behalf or on behalf of their nationals arising directly out of the war or out of actions taken because of the existence of a state of war in Europe after September 1, 1939, whether or not the Allied or Associated Power was at war with Germany at the time.] (1)

(1)
Proposal by United Kingdom and United States Delegations, supported by French Delegation. The Soviet Delegation suggests consideration of the proposals of the Yugoslav Delegation, set out in documents CFM(D) (47) (A) 10, CFM(D) (47) (A)75, and CFM (47)M/143, relating to its reparation claims against Austria and proposes hearing the Yugoslav Delegation.

[Page 1519]

Article 35 German Assets in Austria

[1. Austria recognizes that the Soviet Union, the United Kingdom, the United States of America and France have the right to dispose of all assets in Austria in accordance with decisions of the Berlin Conference of August 2, 1945.

2. (a) Notwithstanding the provisions in paragraphs 4 and 5 of the present Article, Austria undertakes to take all measures necessary to eliminate German interests in Austria and in particular to trace, take under control and liquidate assets of all kinds belonging to Germany or to German nationals and which are situated in Austria.

(b) The liquidation of German assets shall not affect the rights possessed by the United Nations and their nationals directly or indirectly to property in Austria, including the rights which are to be re-established under Article 42 of the present Treaty.

(c) The liquidation of German assets shall be carried out under the control of a Commission consisting of representatives of the Soviet Union, the United Kingdom, the United States of America and France and shall be completed within a period of eighteen months from the coming into force of the present Treaty.

3. Austria undertakes to pay to the Soviet Union the proceeds from the liquidation of German assets in Eastern Austria and to pay to the United States of America, the United Kingdom and France the proceeds from the liquidation of German assets in Western Austria. She will hand over or deliver free of charge to these Powers, as representing the proceeds of such liquidation:

(a)
the assets mentioned in paragraphs 4 and 5 of the present Article immediately upon the coming into force of the present Treaty;
(b)
for a period of — years from the coming into force of the present Treaty, the property and products under the conditions set out in paragraph 6 of the present Article to the value of — millions of US dollars corresponding to the share of the Soviet Union and to the value of — millions of US dollars corresponding to the share of the United States of America, the United Kingdom and France.

4. (a) Austria shall take all measures necessary to ensure the transfer to the Soviet Union in full ownership the installations and equipment used in prospecting and extracting bituminous products and which are enumerated in Appendix—to the present Treaty.

(b) Austria undertakes to grant to the Soviet Union and to uphold for a period of—years from the coming into force of the present Treaty concessions for prospecting and extracting bituminous products on land of an area of—hectares as set out in Appendix—to the present Treaty.

(c) The undertakings set up by the Soviet Union for the purpose of exploiting the property and the rights mentioned in subparagraphs [Page 1520] (a) and (b) of the present paragraph shall, for all purposes, be subject to the provisions of Austrian law. However, Austria undertakes not to nationalize or to order under any form whatsoever the forced alienation of such undertakings before the expiry of a period of—years from the coming into force of the present Treaty, without the agreement of the Soviet Union.

5. (a) Austria renounces, on her own behalf, and on behalf of her nationals, in favor of the Soviet Union all property of the “Erste Donau Dampfschiffahrte Gesellschaft” Company (D.D.S.G.) which are located on the territory of Hungary, Bulgaria and Rumania including the ships enumerated in Appendix—to the present Treaty.

(b) Austria shall hand over to each of the Allied and Associated Powers a number of ships to be levied on those belonging to the D.D.S.G. Company representing a tonnage equal to that of the ships which were lost by the Shipping Companies owned or controlled by the said Allied or Associated Power or by its nationals due to their ships having been used by the D.D.S.G. during the war.

6. (a) The deliveries mentioned in paragraph 3(b) of the present Article shall be derived:

(i)
from Austria’s current production;
(ii)
from the installations and industrial equipment designed for the manufacture of war material and which are not necessary for the requirements of the authorized military forces and which cannot immediately be adapted to civilian use.

(b) The amounts and categories of goods to be delivered shall form the subject of agreements between the interested Government and the Austrian Government; the choice will be made and deliveries spread out in such a fashion as not to impede the economic reconstruction of Austria and not to impose additional burdens on the other Allied or Associated Powers. The agreements concluded in virtue of this paragraph shall be communicated to the Heads of the Diplomatic Missions of the Soviet Union, the United Kingdom, the United States of America and France in Vienna.

(c) The Allied or Associated Power concerned shall supply to Austria under trade conditions the raw materials or products normally imported by Austria and which are required for the production of such goods. Payment for such raw materials or products shall be made by deducting their value from the value of the goods supplied to the Power concerned.

(d) The United States dollar at gold parity as on July 1, 1946, that is to say that 35 dollars per fine ounce of gold shall be used as the basis for calculating the settlement provided for in the present paragraph.] (1)

[Page 1521]

(1)French proposal submitted as Annex to CFM/ATC (47) 76, October 8, 1947. This text was supplemented by document CFM/47/L/8 of November 27, 1947 as follows:

The French Delegation is now able to supply certain particulars in regard to the proposals which it put forward in Vienna on October 8th and which formed the subject of Document CFM/ATC (47) 76 of October 8, 1947.

Definite settlement of the problem of German assets in Austria should comprise three elements i.e.:

(a)
an apportionment of oil rights both for prospecting and extracting in the form of new concessions;
(b)
a division of the holdings of the D.D.S.G.;
(c)
an amount fixed in dollars to be paid by Austria in the form of products from her current production.
After further study, since the adjournment of the work of the Austrian Control Commission, the French Delegation is able to put forward certain figures in respect of each of these elements.

1. Oil.

(a)
Extraction. The Soviet Union should receive concessions corresponding to about 50% of the present production of Austria. The duration and general terms should be fixed in accordance with precedents in similar cases.
(b)
Prospecting. The Soviet Union should receive about ⅓ of the area of the Zistersdorf oil fields.
(c)
Refining. Refineries representing a capacity of 250,000 to 300,000 tons should be transferred to the Soviet Union.
(d)
Distribution. The Soviet Union should keep those facilities which she now has in two distributing concerns.

2. D.D.S.G.

Austria should forfeit in favor of the Soviet Union all holdings of the D.D.S.G. in Hungary, Roumania and Bulgaria. Further, Austria should transfer to the Allies a certain number of ships in order to compensate the losses suffered by their river fleets during the war through requisitions made for the benefit of the D.D.S.G.

3. Amount in Dollars.

The figure envisaged by the French Delegation for Eastern Austria is 100,000,000 dollars. Delivery should be spread over ten years, starting from such time as Austria’s minimum needs have been met.

The particulars set out above by the French Delegation do not, of course, constitute a fresh proposal, and all the suggestions contained in the document of October 8th, which formed a whole, as indicated in paragraph 17 of this document, still stand particularly those concerning points not dealt with above; this is especially the case as regards the application of Austrian law, arbitration, and the property of United Nations and minority groups.

[The Soviet Union shall receive:

1.
(a) Oil Extraction
Concession rights to oil production areas equivalent to two thirds of the current production of oil in Austria, as well as property rights to all buildings, plant, equipment and other property forming part of these production areas, in accordance with the lists and the map annexed to the Treaty.
(b) Oil Prospecting
Concession rights to two thirds of all undeveloped areas in Eastern Austria that are German assets to which the Soviet Union is entitled in conformity with the Potsdam Agreement and which are in its possession at the present time, in accordance with the list of concessions and the maps annexed to the Treaty.
2.
The period of validity of the concessions defined in paragraph 1 for prospecting and for the extraction of oil shall be fifty years.
3.
The Soviet Union shall receive oil refineries having a total annual production capacity of four hundred and fifty thousand tons of crude oil, in accordance with the list annexed to the Treaty.
4.
The Soviet Union shall receive those undertakings concerned in the distribution of oil products which are at present at its disposal, in accordance with the list annexed to the Treaty.
5.
In respect of D.D.S.G. (Danube Shipping Co.), the Soviet Union shall receive the assets, including ships, located in Hungary, Bulgaria and Rumania, and likewise a share (25%) of the assets of D.D.S.G. which are located in Austria itself.
6.
The Soviet Union, the United Kingdom, the United States and France cede to Austria their property rights to all former German assets in Austria, with the exception of those assets which are specified in paragraphs 1, 3, 4 and 5 of the present proposal, and Austria, on her part, undertakes to pay the Soviet Union within two years two hundred million American dollars in freely convertible currency, and to pay to the United Kingdom, the United States of America and to France —— million American dollars within —— years.
7.
All former German assets which have come into the possession of the Soviet Union shall not be subject to alienation without the consent of the Soviet Union.
Undertakings covered by the definition of assets above-mentioned shall operate in accordance with Austrian legislation, on condition that Austria shall not raise any difficulties in regard to the export of the profits or other income in the form of output or freely convertible currency.
The foregoing German assets shall be transferred to the Soviet Union free from any obligations which have accrued up to the date of the actual transfer of the said assets to the Soviet Union.
8.
Any disputes which may arise in connection with the application of the provisions of the Article covering German assets in Austria shall be settled by means of bilateral negotiation between the interested parties.] (2)

(2) Soviet proposal, CFM/D/L/48/A/1, January 24, 1948, revised.

Note: The following was recorded in the Record of Decisions for the 89th meeting of the Deputies:

The Deputies continued discussion on the question of German assets in Austria and decided to record the following decisions of principle, these decisions being subject to a satisfactory settlement of the German assets question as a whole and conditional upon subsequent agreement on lists of definite properties to be transferred:

(a)
Refining
There shall be transferred to the Soviet Union oil refineries with a total annual capacity of 420,000 tons of crude oil on the basis of the 1947 capacity of these refineries;
(b)
Distribution of Oil Products
There shall be transferred to the Soviet Union those undertakings concerned in the distribution of oil products which are at present at its disposal;
(c)
Duration of Contracts
The period of validity of concessions to be transferred to the Soviet Union shall be established as follows:
(i)
For the extraction of oil from areas already under exploitation—30 years;
(ii)
For oil exploration—8 years, with a further period of 25 years for extraction to run from the time when oil has been discovered in the explored areas.

[Page 1523]

section ii

Article 36 Restitution by Austria

1.
Austria accepts the principles of the United Nations Declaration of January 5, 1943, and shall return, in the shortest possible time, property removed from the territory of any of the United Nations.
2.
The obligation to make restitution applies to all identifiable property at present in Austria which was removed by force or duress by any of the Axis Powers from the territory of any of the United Nations, irrespective of any subsequent transactions by which the present holder of any such property has secured possession.
3.
The Austrian Government shall return the property referred to in this Article in good order and, in this connection, shall bear all costs in Austria relating to labor, materials and transport.
4.
The Austrian Government shall co-operate with the United Nations in, and shall provide at its own expense all necessary facilities for, the search for and restitution of property liable to restitution under this Article.
5.
The Austrian Government shall take the necessary measures to effect the return of property covered by this Article held in any third country by persons subject to Austrian jurisdiction.
6.
Claims for the restitution of property shall be presented to the Austrian Government by the Government of any country from whose territory the property was removed, it being understood that rolling stock shall be regarded as having been removed from the territory to which it originally belonged. The period during which such claims may be presented shall be nine months from the coming into force of the present Treaty.
7.
The burden of identifying the property and of proving ownership shall rest on the claimant Government and the burden of proving that the property was not removed by force or duress shall rest on the Austrian Government.
8.
The Government entitled to restitution and the Austrian Government may conclude agreements which will replace the provisions of the present Article. This bilateral procedure will apply particularly to the restitution of rolling stock, in regard to which the Allied and Associated Powers recognize that restitution should be arranged so as to effect a minimum dislocation of Austria’s essential transport requirements.
[9.
If, in particular cases, it is impossible for Austria to make restitution of objects of artistic, historical or archaeological value, belonging to the cultural heritage of the United Nation from whose territory such objects were removed to Austria by force or duress by German forces, authorities or nationals, Austria shall transfer to the United [Page 1524] Nation concerned objects of the same kind as, and of approximately equivalent value to, the objects removed, insofar as such objects are obtainable in Austria.] (1)
(1)
Proposal by the Soviet Delegation opposed by the French, United States and United Kingdom Delegations.

Article 38 Austrian Property in Germany and Renunciation of Claims by Austria on Germany

1.
From the date of the coming into force of the present Treaty the property in Germany of the Austrian Government or of Austrian nationals, [including such property removed after March 12, 1938, as may be declared subject to return by the Powers in occupation of Germany], (1) shall be returned to its owners. This provision shall not apply to the property of war criminals or persons who have been subjected to the penalties of denazification measures; such property shall be placed at the disposal of the Austrian Government if it has not been subjected to blocking or confiscation in accordance with the laws or ordinances in force in Germany after May 8, 1945.
[2.
The restoration of Austrian property in Germany shall be effected in accordance with measures which will be determined by the Powers in occupation of Germany in their zones of occupation.] (2)
[3.
Without prejudice to these and to any other disposition in favor of Austria and Austrian nationals by the Powers occupying Germany, Austria waives on its own behalf and on behalf of Austrian nationals all claims against Germany and German nationals outstanding on May 8, 1945, except those arising out of contracts and other obligations entered into, and rights acquired, before March 13, 1938. This waiver shall be deemed to include all claims in respect of transactions effected by Germany during the period of the annexation of Austria and all claims in respect of loss or damage suffered during the said period, particularly in respect of the German public debt held, by the Austrian Government or its nationals and of currency withdrawn at the time of the monetary conversion. Such currency shall be destroyed, [except for such amounts as may be required to meet the claims of United Nations,] (3) upon the coming into force of the present Treaty.] (4)
(1)
Proposal of the French Delegation, supported by United Kingdom and United States Delegations, opposed by Soviet Delegation.
(2)
Proposal of the Soviet Delegation.
(3)
Proposal of the United Kingdom and United States Delegations. The Soviet Delegation is opposed to the words between brackets. The French Delegation reserves its position on these words until Articles 35 and 48 bis are agreed.
(4)
The United States and United Kingdom Delegations will accept paragraph 3 above only on condition that a general agreement is reached on Article 41.

Article 41 German Claims against Austria

[The Allied and Associated Powers undertake to support the inclusion in the German Peace Treaty of a waiver by Germany to all claims [Page 1525] based on the transfer or liquidation of its property or the property of its nationals as well as to all economic and financial claims against Austria or Austrian nationals outstanding on May 8, 1945, or arising out of the re-establishment of Austrian independence and of such waiver as may be appropriate of claims of German nationals against Austria or Austrian nationals.] (1)

(1)
Proposal of United States, United Kingdom and French Delegations. Soviet Delegation considers it premature to discuss this question.

Article 42 United Nations Property in Austria

[1. In so far as Austria has not already done so, Austria shall restore all legal rights and interests in Austria of the United Nations and their nationals as they existed on the day hostilities commenced between Germany and the United Nation concerned, and shall return all property in Austria of the United Nations and their nationals as it now exists.] (1)

[1. In so far as this has not already been done, Austria will restore all legal rights and interests in Austria of the United Nations and of their nationals such as they existed on September 1, 1939, as well as the legal rights and interests of the United Nations and of their nationals which existed on March 13, 1938, and were subjected after that date to transfers liable to cancellation under paragraph 3 of the present Article. Austria will restitute to such United Nations and their nationals items of property belonging to them in Austria in their present condition.] (2)

2. The Austrian Government undertakes that all property, rights and interests passing under this Article shall be restored free of all encumbrances and charges of any kind to which they may have become subject as a result of the war with Germany and without the imposition of any charges by the Austrian Government in connection with their return. The Austrian Government shall nullify all measures [including seizures, sequestration or control] (3) [of seizures, sequestration or control] (4) taken against United Nations property between [March 13, 1938] (5) [the day of commencement of hostilities between Germany and the United Nation concerned] (6) and the coming into force of the present Treaty. In cases where the property has not been returned within six months from the coming into force of the present Treaty, application shall be made to the Austrian authorities not later than twelve months from the coming into force of the Treaty, except in cases in which the claimant is able to show that he could not file his application within this period.

[3. The Austrian Government shall invalidate transfers involving property, rights and interests of any description belonging to United Nations nationals, where such transfers resulted from force exerted [Page 1526] by Axis Governments or their agencies between the beginning of hostilities between Germany and the United Nation concerned and May 8, 1945.] (7)

[3. (a) The Austrian Government will cancel transfers of property, rights and interests of all kinds belonging to the United Nations which were carried out between March 13, 1938 and May 8, 1945, when these transfers:

(i)
were carried out in relation to measures directed by Germany against physical or juridical persons designated as non-Aryan;
(ii)
were carried out without the free consent of the owners and without complete compensation.

(b) The Austrian Government will also cancel, in the degree in which they have caused prejudice to the United Nations or their nationals, transactions carried out between March 13, 1938 and May 8, 1945 in relation to property, rights and interests belonging on March 13, 1938 to these United Nations or to their nationals when by such transactions the property, rights and interests have been acquired by any person whatsoever:

(i)
to the exclusion of the rights of nationals of the United Nations;
(ii)
by an investment in enterprises the property rights of which had previously been transferred and which must be cancelled in accordance with the terms of sub-paragraph (a) of this paragraph;
(iii)
through acquiring enterprises the property rights of which had been transferred previously and which must be cancelled in accordance with the terms of sub-paragraph (a) of this paragraph, or through acquiring the assets of these enterprises.] (8)

[4. (a) In cases in which the Austrian Government provides compensation for losses suffered by reason of injury or damage to property in Austria which occurred during the German occupation of Austria or during the war, United Nations nationals shall in no event receive less favorable treatment than that accorded to Austrian nationals; and in such cases United Nations nationals who hold, directly or indirectly, ownership interests in corporations or associations which are not United Nations nationals within the meaning of paragraph 8 (a) of this Article shall receive compensation based on the total loss or damage suffered by the corporations or associations and bearing the same proportion to such loss or damage as the beneficial interest of such nationals bears to the capital of the corporation or association.] (9)

[4. (a) The Austrian Government undertakes to enter into agreements with each of the United Nations concerned in regard to the property in Austria, dealt with in this Article, of their nationals which cannot be returned or which has suffered injury or damage as a result [Page 1527] of the war with Germany. These agreements shall be concluded in the shortest possible time and Austria undertakes therein to give to the nationals of each of the United Nations concerned treatment no less favorable than has been, is, or may be, granted in the territory of that United Nation to Austrian property, and, in no event, less favorable treatment than that accorded by the Austrian Government to Austrian nationals.

Nothing in the foregoing shall require Austria to make payments in foreign currencies in respect of loss, injury or damage to property.] (10)

4. (b) The Austrian Government shall accord to United Nations nationals the same treatment in the allocation of materials for the repair or rehabilitation of their property in Austria and in the allocation of foreign exchange for the importation of such materials as applies to Austrian nationals.

5. All reasonable expenses incurred in Austria in establishing claims, including the assessment of loss or damage, shall be borne by the Austrian Government.

6. United Nations nationals and their property shall be exempted from any exceptional taxes, levies or imposts imposed on their capital assets in Austria by the Austrian Government or any Austrian authority between the date of the surrender of the German armed forces and the coming into force of the present Treaty for the specific purpose of meeting charges arising out of the war or of meeting the costs of occupying forces. Any sums which have been so paid shall be refunded.

7. The owner of the property concerned and the Austrian Government may agree upon arrangements in lieu of the provisions of this Article.

8. As used in this Article:

(a) “United Nations nationals” means individuals who are nationals of any of the United Nations, or corporations or associations organized under the laws of any of the United Nations, at the coming into force of the present Treaty, provided that the said individuals, corporations or associations also had this status on May 8, 1945.

The term “United Nations nationals” also includes all individuals, corporations or associations which, under the laws in force in Austria during the war, have been treated as enemy [or as under enemy control]. (11)

[Only those United Nations nationals who possessed United Nations nationality prior to the date on which their property suffered damage in Austria shall, however, be entitled to compensation in accordance with paragraph 4 of this Article.] (12)

(b) “Owner” means the United Nation, or the United Nations [Page 1528] national, as defined in sub-paragraph (a) above, who is entitled to the property in question, and includes a successor of the owner, provided that the successor is also a United Nation or a United Nations national as defined in sub-paragraph (a). If the successor has purchased the property in its damaged state, the transferor shall retain his rights to compensation under this article, without prejudice to obligations between the transferor and the purchaser under domestic law.

(c) “Property” means all movable or immovable property, whether tangible or intangible, including industrial, literary and artistic property, as well as all rights or interests of any kind in property.

[9. The provisions of this Article do not apply to transfers of property, rights or interests of United Nations or United Nations nationals in Austria made in accordance with laws and enactments which were in force as Austrian Law on June 28, 1946.] (13)

10. The Austrian Government recognizes that the Brioni Agreement of August 10, 1942, is null and void. It undertakes to participate with the other signatories of the Rome Agreement of March 29, 1923, in any negotiations having the purpose of introducing into its provisions the modifications necessary to ensure the equitable settlement of the annuities which it provides.

(1)
Proposal by the Soviet Delegation. Opposed by the French, United States and United Kingdom Delegations.
(2)
Proposal by the French Delegation. The United States Delegation supports this proposal in principle but in view of the intimate relation of paragraphs 1 and 3 of Article 42 to Article 35, and the existing differences among the several Delegations, including differences between the French and United States Delegations, regarding the text of Article 35, the United States Delegation prefers to reserve its position on the exact language of these paragraphs pending further study of or agreement on Article 35. The United Kingdom Delegation agrees in principle with the United States Delegation but will reserve its final position on these paragraphs.
(3)
Proposal of United Kingdom, French and United States Delegations.
(4)
Proposal of Soviet Delegation.
(5)
Proposal of United Kingdom, French and United States Delegations.
(6)
Proposal of Soviet Delegation.
(7)
Proposal of Soviet Delegation. Opposed by French, United Kingdom and United States Delegations.
(8)
Proposal of the French Delegation. The United States Delegation supports this proposal in principle but in view of the intimate relation of paragraphs 1 and 3 of Article 42 to Article 35, and the existing differences among the several Delegations, including differences between the French and United States Delegations, regarding the text of Article 35, the United States Delegation prefers to reserve its position on the exact language of these paragraphs pending further study of or agreement on Article 35. The United Kingdom Delegation agrees in principle with the United States Delegation but will reserve its final position on these paragraphs.
(9)
Proposal by United States and Soviet Delegations.
(10)
Proposal by United Kingdom Delegation. Supported by French Delegation.
(11)
Addition by United States and United Kingdom Delegations, which the Soviet and French Delegations consider unnecessary.
(12)
Addition by the French Delegation, with which Soviet Delegation agrees in principle. Opposed by the United States Delegation.
(13)
Proposal of Soviet Delegation. Opposed by the United States, United Kingdom and French Delegations.
[Page 1529]

Article 43 Application of Austrian Law to United Nations Property, Rights and Interests in Austria

[Subject to any other provisions in the present Treaty affecting the treatment of property in Austria, all property, rights and interests in Austria of the United Nations and their nationals, equally with Austrian-owned property, shall receive the full protection of Austrian law and be subject to the provisions of Austrian law.] (1)

(1)
Proposal of United States, French and United Kingdom Delegations. The Soviet Delegation reserves its position until Articles 35 and 42 have been agreed.

Article 44 Property, Rights and Interests of Minority Groups in Austria

1.
In so far as such action has not already been taken, Austria undertakes that, in all cases where property, legal rights or interests in Austria have since March 13, 1938, been the subject of [measures of sequestration, confiscation or control] (1) [transfer under duress, acts of confiscation, dispossession or spoliation] (2) on account of the racial origin or religion of the owner, the said property shall be returned and the said legal rights and interests shall be restored together with their accessories. Where return or restoration is impossible, compensation shall be granted for losses incurred by reason of such measures to the same extent as is, or may be, given to Austrian nationals generally in respect of war damage.
2.
Austria agrees to take under its control all property, legal rights and interests in Austria of persons, organizations or communities which, individually or as members of groups, were the object of racial, religious or other Nazi measures of persecution where, in the case of persons, such property, rights and interests remain heirless or unclaimed for six months after the coming into force of the present Treaty, or where in the case of organizations and communities such organizations or communities have ceased substantially to exist. Austria shall transfer such property, rights and interests to appropriate agencies or organizations to be designated by the Four Heads of Mission in Vienna by agreement with the Austrian Government to be used for the relief and rehabilitation of victims of persecution by the Axis Powers, it being understood that these provisions do not require Austria to make payments in foreign exchange or other transfers to foreign countries which would constitute a burden on the Austrian economy. Such transfer shall be effected within eighteen months from the coming into force of the present Treaty and shall include property rights and interests required to be restored under paragraph 1 of this Article.
(1)
Proposal by the Soviet Delegation which the French and United Kingdom. Delegations are prepared to accept.
(2)
Proposal by United States Delegation which United Kingdom and French Delegations are prepared to accept.
Note: The following notation is made to the text of this Article in the ATC Final Report:
Comparison of the texts revealed that the word “substantially” in paragraph 2 Of the English text is not contained in the Soviet and French texts.

Article 45 Austrian Property in the Territory of the Allied and Associated Powers

1.
The Allied and Associated Powers declare their intention to return Austrian property, rights and interests as they now exist in their territories or the proceeds arising out of the liquidation, disposal or realization of such property, rights or interests subject to accrued taxes, expenses of administration, creditor claims and other like charges, where such property, rights or interests have been liquidated, disposed of or otherwise realized. The Allied and Associated Powers will be prepared to conclude agreements with the Austrian Government for this purpose.
[2.
Notwithstanding the foregoing provisions, the Federal People’s Republic of Yugoslavia shall have the right to seize, retain or liquidate Austrian property, rights and interests within Yugoslav territory on the coming into force of the present Treaty and also to apply the proceeds thereof to such purposes as it may desire within the limits of its claims and those of its nationals against Austria or Austrian nationals, including debts, other than claims fully satisfied under other Articles of the present Treaty. The Government of Austria undertakes to compensate Austrian nationals whose property is taken under this paragraph.] (1)
(1)
Proposal by French Delegation, supported by Soviet Delegation. United states and United Kingdom Delegations can accept this paragraph only if the United States, United Kingdom and French proposal for Article 34 is accepted by all Delegations. The Soviet Delegation considers paragraph 2 has no connection whatsoever with Article 34.

Article 48 Debts

1.
The annexation of Austria by Germany shall not be deemed to have affected the obligations of the Austrian Government in respect of external loans issued prior to March 13, 1938. The Allied and Associated Powers recognize that the Government of Austria has no obligation in respect of German Government securities freely accepted by the holders thereof in exchange for securities of the Government of Austria, [or in respect of these Austrian securities regarding which after March 13, 1938, payment agreements were concluded between Germany and the creditor States]. (1)
[2.
The Allied and Associated Powers recognize that interest payments and similar charges on Austrian Government securities falling [Page 1531] due after March 12, 1938, and before May 8, 1945, constitute a claim on Germany and not on Austria.] (2)

[As regards payment of interest and similar charges on Austrian Government securities falling due between March 13, 1938, and May 8, 1945, the Allied and Associated Powers declare their intention to negotiate with Austria agreements to fix the conditions of payment, taking into consideration the financial position of Austria.] (3)

3.
The Allied and Associated Powers declare their intention not to avail themselves of the provisions of loan agreements made by the Government of Austria before March 13, 1938, in so far as those provisions granted to the creditors a right of control over the government finances of Austria.
4.
The existence of the state of war between the Allied and Associated Powers and Germany shall not, in itself, be regarded as affecting the obligation to pay pecuniary debts arising out of obligations and contracts which existed, and rights which were acquired, before the existence of the state of war, which became payable prior to the coming into force of the present Treaty, and which are due by the Government or nationals of Austria to the Government or nationals of one of the Allied and Associated Powers or are due by the Government or nationals of one of the Allied and Associated Powers to the Government or nationals of Austria.
5.
Except as otherwise expressly provided in the present Treaty, nothing therein shall be construed as impairing debtor-creditor relationships arising out of contracts concluded at any time prior to September 1, 1939, by either the Government of Austria or persons who were nationals of Austria on March 12, 1938.
(1)
Proposal by the Soviet Delegation opposed by the United Kingdom, United States and French Delegations.
(2)
Proposal by United States, United Kingdom and Soviet Delegations.
(3)
Alternative proposal by French Delegation, opposed by United States, United Kingdom and Soviet Delegations.

Article 48 bis

[Austria acknowledges as a debt, payable by her, monetary loans and also the value of all supplies and services delivered to the Austrian Government by any of the Allied or Associated Powers between May 8, 1945, and the coming into force of the present Treaty.] (1)

[The Governments of the Allied and Associated Powers waive all claims against the Government or nationals of Austria which they or any of them may have for the value of imported supplies delivered by them or any of them for civilian consumption in Austria between May 8, 1945, and the coming into force of the present Treaty, other than supplies delivered under commercial contracts, trade agreements or credit arrangements.] (2)

[Page 1532]
(1)
Proposal by Soviet Delegation.
(2)
Proposal by United States Delegation, supported by the United Kingdom and French Delegations.

Article 49 bis Contracts Between Austria and Germany

[The Government of Austria with the agreement of the Heads of the Diplomatic Missions in Vienna of the Soviet Union, of the United Kingdom, of the United States and of France, may take action with a view to terminating contractual relations between Austrian nationals and Germany or German nationals existing on May 8, 1945, which created conditions of undue economic dependence by Austria on Germany, or which were harmful to the Austrian economy and involved long-term obligations for the delivery of goods or services or for the determination of prices or of preferential terms of payment.] (1)

(1)
Proposal of the United Kingdom, United States and French Delegations. The Soviet Delegation reserves its position on this Article until a decision on Article 35 is reached.

Part VIII Miscellaneous Economic Provisions

Article 51 Patents

[Austrian patent law shall be amended in order to limit the study preliminary to registration to a simple survey of the definition of the new characteristics of the projects.

Any kind of technical centralization by any means and any form of preliminary appeal to opposition are prohibited.] (1)

(1)
Proposal by French Delegation. Opposed by the United States, United Kingdom and Soviet Delegations. The French Delegation reserves the right to present a new text of this Article.
Note: The French Deputy informally proposed the following at the 103rd meeting:
Austria undertakes to join any international organization engaged in the investigation of the novelty of inventions on behalf of national Patents Offices.
Austria shall not adopt within its territory any measures which might prevent it from becoming a member of such an organization in the future.

Annex III Prohibition of Certain Equipment and Products

[List of the equipment and products of which the research and development, experimentation, production and possession are prohibited under the conditions set out below.

i

(a)
Continuous rolling mills of an affective width over 2 meters, other than those already existing.
(b)
Cranes and gantries of a power greater than 100 tons in steel mills or steel foundries, other than those already existing.
(c)
Armour plate over 3 inches thick (76 mm.), with a surface hardness greater than 500 Brinnell.

[Page 1533]

ii

Manufacture, research for the purposes of industrial manufacture, and possession of hydrogen peroxide of a concentration greater than 41 percent. Laboratory research on this product is authorized, likewise the possession of the requisite quantities for this purpose.

iii

(a)
Mathematical machines specially designed to be fitted into prohibited apparatus or equipment, or to be applied to their study or construction.
(b)
Installations or apparatus devised for the study of nuclear physics, as applied to industrial uses or for war purposes. However, the use of cyclotrons or similar instruments in universities, for fundamental research work, is authorized.
(c)
Installations or apparatus intended for aerodynamic research in the regions corresponding to a Mach number greater than or equal to 0.9.
(d)
Experimental tanks and all other apparatus devised for the study and development of high speed craft (speed equal to or over 30 knots), submarines, underwater explosions and other development or apparatus and equipment adaptable to naval warfare.] (See note below.)
Note: French proposal; supported by USSR; opposed by US and UK.

Annex IV Prohibition of Certain Research, Development and Manufacture

[List of research and development and manufacture which are prohibited under the conditions set out below:

i

(a)
Research and development into the application of gas turbines and rockets to aircraft and manufacture in connection therewith.
(b)
Research and development of gyroscopes.

ii

(a)
Research, development and manufacture of radio-electric emitting apparatus of a frequency over 300,000 kilocycles, and the equipment connected with these.
(b)
Research, development and improvement of manufacturing processes of quartz and piezo-electric cells, thermo-electric, radio-electric and photo-electric cells, the use of which shall be unrestrictedly authorized, but the stock shall be limited to the indispensable spares, and exportation prohibited.
(c)
Research, development and manufacture of emitting or receiving apparatus for infra-red, ultra-violet, infra-sounds and ultrasounds, the use of which shall be limited to medical and university-requirements exclusively, and the stock shall be restricted to the indispensable spares for these requirements. Fundamental research and development on infra-red, ultra-violet, infra-sounds and ultra-sounds are authorized.
(d)
Research and development on stratospheric cabins and manufacture connected with these.
(e)
Research, development and manufacture of industrial machines such as: centering machines and industrial measuring machines and machine tools, accurate to over one ten-thousandth in the measurement of force, one ten-thousandth of a second in the measurement of time, and one thousandth of a millimeter in the measurement of length.

iii

(a)
Manufacture and use of heavy water on an industrial scale, and research for this purpose.
(b)
Manufacture for export purposes of the following primary metals and their alloys: magnesium, beryllium, vanadium.
(c)
Manufacture of nitric and sulphuric acids by processes producing directly concentrations of higher than 95 percent and 98 percent respectively in excess of domestic non-military requirements.
(d)
Research, development and manufacture in the field of fritted metals, with the exception of the Reutte works, which shall not be permitted either to increase or alter their installations and equipment.
(e)

Research, development and manufacture of radio-active materials, the use and stocking of which shall be restricted to medical and university requirements.] (See note below)

Note: French proposal; supported by USSR; opposed by US and UK.

Annex V Limitation of Stocks of Certain Materials

[List of materials, the stocking of which shall be restricted to the quantities requisite to meet the peace-time requirements of the Austrian economy over a period of six months:

  • Copper
  • Nickel
  • Chromium
  • Vanadium
  • Tungsten
  • Manganese
  • Molybdenum
  • Magnesium
  • Beryllium
  • Natural and artificial radio-active products
  • Rubber
  • Primary aluminum
  • Fritted metals
  • Sulphuric acid of more than 98 percent concentration
  • Nitric acid of more than 95 percent concentration] (See note below)

Note: French proposal; supported by USSR; opposed by US and UK.