740.00119 Council/10–2749: Telegram

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

secret
priority

Delau 336. From Reber. Department’s instructions of October 261 most helpful. I have discussed them with French and British Deputies who assure me of their full cooperation in continued efforts to reduce Soviet demands and secure conclusion of treaty. As proposed in Delau 3322 we have agreed that primary endeavor should be made to resolve outstanding issues of Article 35 which we expect will permit us to obtain greater concessions from Soviets on other Articles. It would of course be made clear that any modification of US position on outstanding issues of Article 35 is being made in light of Zarubin’s [Page 1188] declaration that agreement on this article would eliminate difficulties as regards other articles.

Department will recall that agreement was reached last Friday to review situation within one week, and agreement to proceed beyond this date will necessitate such review tomorrow.

As it will have to be demonstrated that continuation of negotiations will be profitable we consider that in such review a first step should be made tomorrow along lines suggested in Department’s latest instruction and accordingly have agreed to attempt secure modification of Soviet List 2 and acceptance of Western draft of paragraph 73 in return for final agreement on List 2 as modified and on List 3. It is unlikely Soviets will be in position to accept such suggestion without further instruction but it would also be indicated at same time as a form of package settlement we would be prepared accept Soviet version paragraph 12 in return for agreement upon appointment of third arbiter and that modification of Soviet position on DDSG leases (paragraph 2 of footnote to List 5) would facilitate agreement on paragraph 3 of footnote. The latter would be acceptable particularly as Soviets insist that liabilities in question only relate to leases themselves and do not apply to services or constitute any special exemption from Austrian law.4

In tripartite meeting this afternoon I stressed that US willingness to continue to seek agreement on remaining unresolved issues on best terms obtainable was contingent on assurances received from Messrs. Bevin and Schuman on September 15 that at the time of signature Soviets would be approached on governmental level for purpose of obtaining their agreement to initiation of Austrian Army program. I requested this matter be recalled to attention of their respective governments.

Please relay to Vienna 24, Paris 42, London 65, Moscow 53.

[
Reber
]
  1. Transmitted in Audel 200, p. 1185.
  2. Not printed.
  3. For the texts of this and subsequent drafts indicated in this telegram, see the Unagreed Articles of the Draft Treaty for the Re-establishment of an Independent and Democratic Austria, September 6, p. 1131.
  4. The course of action outlined in this cable was approved by the Department of State (Audel 202, October 28, to New York, not printed, 740.00119 Council/10–2749) and proposed with British and French concurrence at the 227th meeting of the Deputies on October 28. The Soviet Deputy then reiterated his previous position on all of the points proposed by Reber, and the Deputies adjourned until October 31 to allow time for further study of the proposal. (Delau 338, October 28, from New York, not printed, 740.00119 Council/10–2849). On the 31st the Soviet Deputy continued his stand on the outstanding issues of Article 35 and the meetings were suspended until the next Chairman ascertained that a basis for further meetings existed. (Delau 339, October 31, from New York, not printed, 740.00119 Council/10–3149).