740.0011 EW (Peace)/12–349: Telegram

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

top secret
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Delau 367. From Reber. It is difficult to evaluate Zarubin’s present objective and significance of tactics he has adopted during past few meetings. As Department is aware, despite repeated assurances that Soviets foresaw no difficulties once problem of German assets and paragraph 9 of Article 42 had been disposed of, new problems are being created. Linking of remaining paragraphs of Article 42 and Article 48 with successful outcome of Vienna negotiations1 on services and supplies may be, as I had previously reported, intended to bring pressure on Austrians to accept Soviet claims in this respect. There is also possibility that for some reason of their own, Soviets have decided to postpone conclusion of treaty until a time more favorable to them and thus are using Vienna negotiations as pretext for delay. More than ten days have passed since Austrians made their offer and still no reply has been forthcoming. Soviets may intend to suggest next week that deputies reconvene in London some time shortly after first [Page 1203] of year. Zarubin has in past said that if work cannot be finished in New York, why not move to London.

Although when pressed this morning, Zarubin maintained Soviet position on Article 27, he has continually in past reiterated that once other articles were settled, in particular 16, this particular clause would not give rise to difficulty. There is, of course, no guarantee that he will live up to this assurance. It seems more likely to me, however, that Vienna negotiations may prove stumbling block and deputies will be unable to conclude by next week, especially as there is every indication the French will not change their position on Article 16 until progress has been made on other articles.

Department please relay London as USUN No. 98; Paris as USUN No. 70; Moscow as USUN No. 76; Vienna as USUN No. 51.

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Reber
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  1. Under reference here were talks between Soviet and Austrian officials in Vienna under Article 48 bis of the Draft Treaty for the settlement of amounts due the Soviet Union for goods and services rendered to Austria during the occupation. A summary of the Austrian proposals of November 24 was transmitted in Delau 363, November 28, from New York, not printed (740.00119 Council/11–2849). No reply had been received by the Austrian Government to that proposal.