740.0011EW (Peace)/9–1749

The Secretary of State to the French Minister of Foreign Affairs ( Schuman )

secret

My Dear Mr. Minister: You will recall that at our meeting on September 151 it was agreed that a memorandum should be prepared summarizing the conclusions reached with respect to the outstanding issues of the Austrian Treaty, which could serve as a basis for continued negotiations and for any possible informal discussions of the Treaty with the Soviet Foreign Minister. The enclosed memorandum represents our understanding of the agreements reached. I should be grateful for any comments you may care to make or for your confirmation.

I am sending the same communication to Mr. Bevin.

Sincerely yours,

Dean Acheson
[Enclosure]

Memorandum Prepared in the Department of State

secret

On September 15, 1949 the three Ministers discussed the remaining unagreed issues in the Austrian Treaty and procedure for further negotiations. Agreement was reached on the following points:

1.
The Deputies will reconvene their conference in New York about September 22. They will ascertain whether, as a result of the joint diplomatic demarche in Moscow, there has been any change in the Soviet position on the unagreed issues in the Treaty. If no change materializes in the Soviet position which will permit conclusion of the Treaty, the three Ministers are prepared informally to discuss with the Soviet Foreign Minister the principles involved in the existing disagreements and to seek a final settlement consistent with the agreement reached in Paris on June 20, 1949.2
2.

The Ministers agreed on the basic position which will be adopted by the Delegations of the US, UK and France in meeting the Soviet claims on the various unagreed articles and recommended specific [Page 1155] changes which could be made in previous positions in order to facilitate agreement. The specific points are as follows:

  • a. Article 16—Displaced Persons and Refugees. The Ministers agreed that no compromise could be made which would prejudice the principle of voluntary repatriation or which would place Austria in a position requiring repatriation of displaced persons and refugees against their will. An effort will be made to eliminate the entire article from the Treaty, and failing this to eliminate the objectionable paragraphs as proposed by the Soviet Delegation.
  • b. Articles 26 and 27—Military Clauses. The Ministers agreed that they could not accept the Soviet proposal prohibiting Austria from employing foreign technicians in military and civil aviation and in the experimentation, design, manufacture and maintenance of war material. Similarly, the position of the three Western Delegations must be maintained with respect to the three annexes attached to Article 27.

    It was agreed that the Soviets would be approached on a governmental level at the time of the signing of the Austrian Treaty for the purpose of obtaining their agreement to the initiation of the Austrian Armed Forces program in consonance with the provisions of the Treaty.

  • c. Article 35—German Assets. The Ministers agreed that a further effort would be made to obtain agreement on the German assets settlement by insisting on Soviet adherence to the Paris agreement. An effort would be made to secure an equitable distribution of the oil exploration area by acceptance of Western proposals for a division of the Gross Entzersdorf field and to secure acceptance of the provision that the Lobau-Zistersdorf pipe line shall remain under Austrian jurisdiction to be used jointly by Soviet enterprises. If such a settlement can be reached the Ministers saw no objection to accepting the present Soviet claims for refineries in Austria.

    On the question of Danube shipping the Ministers agreed that the Western Delegations should maintain their original position that the Soviet Union receive only the assets held by the DDSG and that they be bound by the terms of the leases.

    On the transportation equipment, it was agreed that the question of assuring sufficient rolling stock to Austria must be discussed, as provided for in the Paris negotiations, and an equitable settlement be reached.

    It was agreed that the provision for appointment of a third arbitrator by the Secretary-General of the United Nations is an important element in the German assets settlement but the Ministers decided that they wished to examine this question before agreeing on a fixed position.

  • d. Article 42—It was agreed that the Treaty must contain satisfactory provisions respecting the restitution of United Nations property, rights and interests.
  • e. Article 48—It was agreed that the Soviet proposal concerning the payment of pre-Anschluss debts by Austria could not be accepted.
  • f. Article 48 bis—The Soviet proposal cannot be accepted and the Western position should be maintained pending satisfactory outcome of the current bilateral negotiations between Austria and the Soviet Union respecting Soviet claims for relief supplies and services.3
  1. A memorandum of conversation of the meeting of the three Foreign Ministers is printed supra.
  2. For the text of the Communiqué of the Sixth Session of the Council of Foreign Ministers, see p. 1062.
  3. In a memorandum to Secretary Acheson, September 23, not printed, Reber reported that Bevin had suggested only one change of substance: an addition to the position on Article 16 which would exclude “refugees” from the scope of the article if the Soviet Union refused to delete the whole article or the objectionable paragraph 5. (740.0011 EW (Peace)/9–2349) No evidence has been found in the Department of State files of any reply by Schuman to this memorandum.