740.0011 EW (Peace) /1–1449: Telegram
The Acting Secretary of State to the Legation in Austria
43. Subj to agreement by Brit and Fr prior to conference ur 9 Jan 5,2 we propose use every means possible to test Sov intention re conclusion Treaty on acceptable basis. We concur early agreement military clauses desirable and are considering recommendations P 2869 Jan 63 for further action to seek quadripartite authorization for preliminary army planning. Since most unagreed articles hinge in one way or another on German Assets settlement, we do not see how Gruber’s tactics of progressive agreement on minor issues over a long period of time can be followed. Although tentative plan is to review at outset all outstanding issues and then to concentrate on military clauses and German assets we consider that Sov intentions can not be tested finally until frontier is discussed in detail. Proposal for establishment subcommittees to agree on properties to be transferred in categories Article 35 already agreed in principle and to give such specifications in other categories as oil production and exploration to make agreement in principle possible might be useful in ascertaining Sov intentions.
During visit Reber, Williamson and Col Thielen to Vienna discussion should be held with Gruber concerning precise plans which Austrians undoubtedly have for meeting lump sum settlement obligation within range of 100 to 150 million dollars represented by present Western [Page 1067] and Soviet positions. We wish Austrians’ views on methods and form of payment (i.e., extent to which payment could be made in goods or convertible currency) and maximum amounts which Austrians think could be transferred annually, especially in early years. We are particularly interested in how payments should be arranged so as to avoid interference with Austrian economic reconstruction and use of US economic assistance as source of financing of payments.
Discussions should also be held in Vienna on questions relating to P 2869 in order that tripartite agreement may be obtained on possible action to be taken by Deputies.4
- Not printed; it reported Gruber’s views on the tactics to be followed in the negotiations of the Deputies for Austria. He hoped that the frontier question would not be raised early in the discussions since the Russians were unlikely to yield on this point, but he wanted a prompt settlement of the military clauses so that the Austrian Government could request authorization from the Allied Council for the planning of the Austrian Army. (740.00119 EW (Peace) /1–549)↩
- Not printed; in it Keyes recommended that the Foreign Ministers direct their representatives on the Allied Council to allow Austria to begin the planning and organization of its security forces or that the U.S. Representative at the treaty discussions introduce such a proposal at the Deputies’ meetings in London. (740.00119 EW (Peace)/1–649)↩
- In telegram 43, January 18, from Vienna, not printed, Erhardt reported that Gruber had agreed in general with the first paragraph of this telegram, hut reiterated his view that the Soviet Union would not be willing to yield on the frontier issue early in the negotiations. If the Russians could obtain a reasonably satisfactory settlement on the German assets question and were permitted to retreat from their untenable positions on other issues in a face-saving manner, then they would be prepared to conclude the treaty. As to the method and form for paying the lump sum, Gruber stated that the Austrian Government would prefer to pay cash, but that it would probably be necessary to pay the bulk of the debt in goods. (740.0011 EW (Peace) /1–1849)↩