No. 562

663.001/10–251: Telegram

The United States High Commissioner for Austria ( Donnelly) to the Acting Secretary of State 1

secret

1208. Part III. Leg comments on abbreviated Aust treaty:

Legal.

Suggest for current tripartite discussions possible arrangements to cover substance of articles 38(3), 39, 42, 44(2), 45(2), 48 and annex IXB(1), which may be required in view of disability of claimants to bring suits against former Ger holdings in Sov Zone during occupation. Some of these matters probably can be covered only by secret assurances of Aust Govt which would not be binding on future Aust Parliaments, but desirability of a treaty warrants relying on the moral effect of such secret commitments and our future influence. Presume Aust declaration of September 1949 on elimination of Ger assets would be revised in light of art 6 of abbreviated treaty.

Although it might detract from striking force of concise text from legal point of view it wld be advantageous if present text of Art 39 clauses on waiver of Aust Govt’s claims against allies and possibly Art 44 (1) without its present restrictive title, could be included in abbreviated treaty. Broad scope of Art 44 (1) would cover most of article 42 problems, and could be accompanied by secret understanding with Aust Govt, substance of which could be made public prior to treaty ratifications, that its provisions will be satisfied by natl treatment under existing restitution laws and reasonable extension of time to file claims. If this not feasible, questions of alternative arrangements cld be explored in tripartite discussions. Leg’s analysis and comments on possible extra treaty arrangements being prepared for despatch Dept next week.

Donnelly
  1. Repeated to London, Paris, Moscow, and Frankfurt for Reber.