663.001/1–3050: Telegram

The Secretary of State to the Embassy in the United Kingdom

top secret

432. Eyes only for Holmes. We have strong reason believe Gromyko has in fact told Bischoff1 Soviet consent to concluding Austrian treaty dependent upon acceptance by Austria of bilateral deal similar in nature to proposals made in previous years to Hungary, Rumania, etc., aimed at complete domination Austrian economy.2 We [Page 443] are naturally concerned at Austrians holding out this info from Western Govts. Brit and Fr Foreign Offices shld be advised of these developments using greatest care to protect source. Gen outline of Gromyko proposal shld however be communicated to them to indicate far-reaching nature of demands and their similarity to earlier demands on satellites.

Bohlen3 has been fully briefed here, is returning to Paris Jan 31 to brief Bruce.4 We think it important Bruce query Gruber directly on this matter while latter is in Paris and he will do so after Bohlen’s anticipated arrival Feb. 1. If Brit have any comments or suggestions they may be made through Harvey.5 Bruce shld see Schuman along same lines.

Sent London as 432; rptd Paris eyes only for Ambassador as 404.

  1. Norbert Bischoff, Austrian Political Representative in the Soviet Union.
  2. While there had been press reports of a Soviet-Austrian deal, the first allegations of a possible bilateral treaty had come from Herbert Kraus, leader of the Austrian Union of Independents, and from military sources in Vienna. According to these sources, by the terms of the alleged treaty the Soviet Union would secure control of Austrian industrial enterprises and oil rights in all of Austria. Further, the Soviet Union would have-the right to equip a future Austrian Army. If these alleged demands were not accepted the Soviet Union “would be forced to consolidate their zone, as in Germany.” Telegrams MAV 1563, MAV 1585, and 139, January 20, 29, and 26, from Vienna, none printed. (663.001/2650 and Vienna Post Files, Lot 55 F 125, Box 137, 320.1 Austrian Treaty)
  3. Charles E. Bohlen, United States Minister at Paris.
  4. David K. E. Bruce, United States Ambassador in France.
  5. Sir Oliver C. Harvey, British Ambassador in France.