840.811/8–348: Telegram

The Secretary of State to the Embassy in Yugoslavia

secret   us urgent

455. Dudel 21. Your summary Soviet draft received today. (Deldu 28, Aug 3) Text received via Brit[ish]. Preliminary views re this draft as follows. Soviet draft differs U.S. position on major issues. Technical details of no political significance pose no serious problems.

Most important issues crystallized by Soviet draft are (1) Western Power participation in new regime, (2) relationship to United Nations, (3) privileges and discriminatory practices present Soviet controlled companies.

Dept considers most notable features Soviet draft are: (a) lack of adequate safeguards for shipping and commerce against local discriminatory [Page 652] and preferential practices; (b) total exclusion of non-riparian states from membership on the commission; (c) no provision for membership of Germany now or later; (d) exclusion of Austria until peace treaty arranged; (e) no provision for participation of occupying Powers during occupation; (f) no obligation placed upon states to carry out commission decisions by adoption of legislative or administrative actions; (g) inadequate assurance of uniform navigation, police or sanitary regulations throughout river; (h) complete omission of any reference or tie to United Nations; (i) smallness of quorum (5 states) for commission to do business; (j) no requirement regarding frequency of commission meetings; (k) no provision for amendment as required by Council Foreign Ministers Declaration.

Important points omitted Soviet draft are: (a) no protection for for in-transit vessels being forced into ports and made to unload cargoes; (b) no prohibition of call or port dues; (c). no permission for navigation companies to establish agencies in ports; (d) commission not entitled to examine complaints regarding application of convention or river practices; (e) commission not authorized to make study trips on river; (f) states not obligated to give commission full cooperation and facilities; (g) no protection of ships’ fuel and stores being taxed or licensed; (h) vessels not protected against being held for unreasonable lengths of time for examinations and petty charges; (i) no mention of free port; (j) no section on navigation courts or exaction of special bail.

Marshall