Foreign Relations of the United States, 1949, Council of Foreign Ministers; Germany and Austria, Volume III

740.0011EW (Peace)/9–1449: Telegram

The Secretary of State to the Embassy in the Soviet Union

top secret
priority
niact

Washington, September 15, 1949—12 noon.

654.¹ Dept concurs changes proposed London’s 3705 Sept 14.² Note reading as follows shld be presented forthwith in accordance previous instrus:³

“1. During recent conference of deputies for the Aust Treaty difficulties arose with respect to the fulfillment of the decisions taken at Paris by the Foreign Ministers of the four powers. These difficulties have prevented the deputies from reaching agreement on the terms of the Treaty, date of Sep 1, 1949, in accordance with their instrus.

2. In order to facilitate early conclusion of Aust Treaty my Govt considers it essential that deputies shld be in position to complete their work within briefest possible period. For this purpose, it believes it highly important that, as has already been proposed, deputies shld meet again on September 22 in New York, where Ministers will be available for consultation, if necessary.

3. In its earnest desire to insure fulfillment of obligations which four powers incurred in subscribing to Moscow Declaration on Nov 1, 1943, my Govt has consistently maintained in course of more than two and one-half years of negots need for concluding Treaty in terms consistent with principles of that declaration which envisaged reestablishment of independent and democratic Austria on firm and lasting basis.

4. Within framework of these principles my Govt has endeavored to meet claims advanced by Sov Union, particularly with respect to Ger assets settlement, in order to bring about conclusion of Treaty. However, my Govt considers itself unable to make such concessions to the increased Sov demands as wld impose on Austria settlement more appropriate for conquered rather than for liberated country. Such settlement wld have effect of nullifying Moscow Declaration.

5. In reaching agreement in principle at Paris Conference for settlement Ger assets question, my Govt did not anticipate that Sov Delegate in subsequent conference of deputies in London wld insist on acceptance without modification of Sov proposals based on an interpretation of that agreement which goes beyond decisions reached by Fon Ministers. Govts of France, UK and US on other hand have interpreted Paris agreement as expressing willingness on part four powers to conclude Aust Treaty on just basis in keeping with objectives set forth in Moscow Declaration. My Govt accordingly considers that Treaty must not contain provisions which wld limit Aust sovereignty or hinder normal development of Aust econ life.

6. In order that above aims may be achieved, my Govt in conjunction with the Govts of France and UK consider it essential that final settlement involve an equitable division on the oil exploration areas in east Austria, based on principles agreed to in Paris, and provisions which will insure that Austria shall retain adequate rolling stock for normal operation of its railways.

Moreover, my Govt also considers that text of Treaty shld make it clear:

(a) that, as stipulated in Paris agreement, rights of Danube Shipping Company to be transferred to Sov Union shld be only those formerly enjoyed by company;

(b) that Aust law shall prevail in all matters involving operations of Sov enterprises in Austria, except for specific cases which are provided for, and that an arbitration procedure shall also be included for settlement of disputes which permits reference to SYG of UN;

(c) that no unwarranted limitations shall be placed on employment of foreign technicians by Austria; and

(d) that adequate provisions shall be made for restoration of UN property rights or compensation therefor.

7. My Govt, together with Govts of France and UK, trusts that its concern for early conclusion of Aust Treaty is shared by Govt of Soviet Union and in this connection requests that Govt of Sov Union will give most serious consideration to views set out above. Meanwhile, it wld be grateful to receive reply at earliest possible moment proposal that deputies shld resume their negots in New York on September 22.”

Concur London’s recommendations inadvisable to release publicity [publicly?] until Sovs have replied and that Aust Govt be given text of note by Ministers Vienna as soon as Ministers notified that delivery has taken place.

Acheson

1. Repeated to London as 3352, Paris as 3445, and Vienna as 1106.
2. Not printed. Following the adjournment of the Austrian Deputies’ meetings, the three Western representatives submitted to their Governments the draft of a note to the Soviet Government. The British and the French agreed to its text, but the United States felt that it represented only part of the necessary approach. A second draft was prepared by the Deputies September 12. Its text as amended by the three Governments provided the basis for the text of the note transmitted in this cable. The texts of the two drafts and related documentation are in file 740.0011EW (Peace)/9–249 through 9–1449 and 740.00119 Council/9–249 through 9–1449.
3. In telegram 3255, September 8, to London (to Moscow as 632), not printed, the Department of State suggested a tripartite approach be made in Moscow with coordination done by the three Western Ambassadors. (740.0011 Council/8–749)