740.00119 Council/9–2949: Telegram

The United States Deputy for Austria at the Council of Foreign Ministers ( Reber ) to the Acting Secretary of State

secret

Delau 307. At a tripartite ministers meeting today, it was agreed that Bevin will see Vishinsky informally, if possible, tomorrow, to ascertain whether Soviet stand is as rigid and inflexible as reported in Delau 305.1 He will probe whether Soviets really desire to conclude? Austrian treaty at this time. If Vishinsky gives any indication he will continue negotiations on a reasonable basis, Bevin will seek to ascertain his minimum position or any other conditions without committing Western states on any specific point.

Bevin has submitted proposals for a comprehensive settlement of outstanding issues which could be used as a basis for fair settlement. No commitment has been made concerning either the text of British proposals pending further study or manner or timing of presentation, if any, to Soviets.

Text British proposal is as follows:

“The following proposals are put forward as an attempt to secure a comprehensive settlement of the outstanding points which the representatives of the three Western powers would be prepared to recommend to their Governments as a settlement fair to all parties.

There are three sets of disagreed articles. First, the political and military clauses—Article 16 on displaced persons, Articles 26 and 27 about German rearmament, and Article 32 on Allied War Graves and [Page 1166] Memorials. The second question is the German Assets Settlement under Article 35. The third concerns the other economic articles of the treaty—42 (United Nations Property), 48 (Debts) and 48 bis (Civilian Supplies).

In the first group, the Soviet seek to impose certain obligations on Austria in respect of (a) the grant of relief to displaced persons (Article 16), (b) the employment of foreign technicians (Articles 26 and 27), and (c) the protection of Allied war graves and memorials (Article 32).

It is understood that in the past, the Soviet representative has linked the first two of these points indicating that if the Western representatives agree to impose the restrictions which he wants in regard to displaced persons, he will give up his proposed restrictions in Article 27. Although not convinced that there is any close connection between these two subjects, the Western powers will be prepared to reach agreement on this basis: that is to say, they would agree to the removal of all the brackets in Article 16 if the Soviet representative will agree to the deletion of the phrases in brackets in Articles 26 and 27.2

On Article 32 (War Graves) the Western representatives are prepared to accept in principle the Soviet draft.

The second group of questions is that concerning German assets.

On the oil question, the Western representatives would be ready to accept a settlement which gave the Soviet satisfaction on oil refineries and oil distribution, that is to say, to accept Soviet lists 3 and 4, provided that the Soviet will agree to the retention by Austria of the pipeline from Lobau to Zistersdorf as a common carrier. The Western representatives are also prepared to accept Soviet list No. 2 on oil exploration areas subject to the Soviet claim to Gross Enzersdorf being reduced to 60 percent of the concession area. This would mean the transfer to the Soviet Union of a block of 105,000 hectares in the southern half of the area of Gross Enzersdorf. The total area to be transferred to the Soviet Union would be made up to 766,000 hectares by the concession to the Soviet Union of the area of Laa an der Thaya.

On the DDSG the Western representatives consider that the Soviet proposals go beyond the agreement reached in Paris. In the interests of a general settlement they are, however, prepared to agree to the transfer to the Soviet Union of the leases held by the DDSG with the proviso that any lease which expires shall be Subject to renewal and that such renewal shall not be unreasonably withheld. If the Soviet consider that renewal is being unreasonably withheld, they should apply the arbitration procedure provided for under Article 35.

Rolling Stock.

Having regard to their understanding and the records of the discussions in Paris on this subject, the Western representatives consider that this question should be discussed by the deputies, who should be instructed to find a solution of the problem which would ensure that Austria retains rolling stock adequate for her economy.

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On paragraph 7 (a) of Article 35, the Western representatives reaffirm their desire that this paragraph should run:

  • “All assets in Austria which have become the property of the Soviet Union under paragraphs … shall…”

As regards paragraph 9, the Western representatives are ready to accept the Soviet draft on the assurance which has been given by the Soviet deputy that the rights, property and interests in question will remain under Austrian jurisdiction and subject to Austrian law.

The Western representatives are prepared to accept the Soviet draft of paragraph 10 providing for Settlement of disputes.

The settlement of questions outstanding on Article 35 proposed above would give the Soviet Union very substantial satisfaction on the question of German assets. The settlement would go much further than the Western representatives had originally envisaged or than they consider to be really justified. In these circumstances, the Western representatives would make that settlement conditional on the Soviet Government accepting their proposals in regard to Articles 42 and 48 which deal with matters which do not affect Soviet interests but which do affect the legitimate interests of other United Nations,

As regards Article 48 bis, Civilian Supplies, the Western representatives propose that this matter be settled by withdrawing the article altogether. This would not prejudice in any way the ability of the Soviet Union to negotiate a separate settlement on this question with Austria.”

Department’s comments on foregoing British proposal are urgently requested.

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  1. Not printed, but see footnote 3 above.
  2. For the various positions on the unagreed articles of the draft Austrian Treaty, see the Unagreed Articles of the Draft Treaty for the Re-establishment of an Independent and Democratic Austria, September 6, p. 1131.