Conference files, lot 60 D 627, CF 197

No. 520
Proposal of the United States Delegation 1


Basis for Immediate Conclusion of Austrian State Treaty

Considering that the draft Austrian State Treaty was agreed by the Deputies of the United States, United Kingdom, France and the U.S.S.R. in 1949, with the exception of Articles 16, 27, 42, 48 and 48 bis;2 and

Convinced that the signing of this Treaty at the present Conference is essential in justice to Austria;

The Four Foreign Ministers:

Confirm their acceptance, in the form agreed by their Deputies, of the Preamble and Articles 1–7; 7 bis; 8; 10–15; 16 bis; 17–19; 21; 25; 26; 28; 30–34; 36; 38; 39; 44; 45; 49; 50; 52; 52 bis; 53–59; Annexes I; II; VIII; IX; X.
Agree to accept Articles 9, 16, 27, 42, 48 and 48 bis; in the form proposed by the Soviet Deputy in the course of the negotiations and reproduced in the English version in the Annex attached hereto.
Agree to Article 35, with the modification proposed by the Soviet delegation, to authorize payment by Austria in goods deliveries of the amount due to the Soviet Union for former German assets under Article 35 of the draft State Treaty.
Agree to sign the Treaty in the foregoing form on Thursday, February 18, at 3 p.m.
Direct their representatives to prepare the final text of the Treaty in the Russian, English, French and German languages in time for such signature.

Note: This proposal is submitted as an interdependent whole.

[Page 1196]


Text of Articles 9, 16, 27, 42, 48, 48–bis as Proposed by the Soviet Deputy

Article 9

dissolution of nazi organizations

Austria shall complete the measures, already begun by the enactment of appropriate legislation approved by the Allied Commission for Austria, to destroy the National Socialist Party and its affiliated and supervised organizations, including political, military and para-military organizations, on Austrian territory. Austria shall also continue the efforts to eliminate from Austrian political, economic and cultural life all traces of Nazism, to ensure that the above-mentioned organizations are not revived in any form, and to prevent all Nazi and militarist activity and propaganda in Austria.

Austria undertakes to dissolve all Fascist type organizations existing on its territory: Political, military, para-military as well as other organizations which carry on activity hostile to any United Nation or which intend to deprive the people of their democratic rights.

Austria undertakes not to let, under threat of penal punishment which shall be immediately determined in accordance with order established by the Austrian Laws, the existence and the activity on Austrian territory of the above-mentioned organizations.

Article 16

displaced persons

Austria undertakes within the period determined by the Allied Commission for Austria to take all necessary measures to complete the voluntary repatriation of Displaced Persons within its territory.
Austria undertakes to render full assistance to the Allied and Associated Powers concerned in regard to the voluntary repatriation of their nationals and will enter into direct bilateral negotiations for this purpose.
Austria further undertakes:
to permit accredited representatives of any Allied or Associated Power whose nationals are in camps or assembly centers allotted to Displaced Persons now in Austria to visit freely such camps or centers for the purpose of conferring with its nationals;
to prohibit in such camps or centers any propaganda hostile to the interests of the Allied and Associated Powers and any activities [Page 1197] designed to induce such Displaced Persons not to return to the countries of which they are nationals;
to dissolve immediately any “committees,” “centers” and other similar organizations existing in those camps and assembly centers that may be found to be engaged in activities opposed to the interests of the Allied and Associated Powers;
to prohibit the recruiting of Displaced Persons into military or para-military organizations;
to provide the means of transportation necessary for the transfer of repatriates to the frontier of their countries of origin nearest Austria.
Austria undertakes to grant to such Displaced Persons the same rights in all respects as those normally accorded to non-Austrians who have been legally admitted into Austria.
No relief shall be given by Austria to persons who refuse to return to their native countries, if these persons fought on the side of the enemies of the Allied and Associated Powers, or voluntarily collaborated with the enemies of these Powers, or engaged in hostile activities against their countries of origin, as well as against any of the United Nations, or are members of organizations and groups which encourage Displaced Persons not to return to their countries of origin.
This Article shall be applied without prejudice to the provisions of Article 11 of the present Treaty.

Article 27

prevention of german rearmament

Austria shall co-operate fully with the Allied and Associated Powers in order to ensure that Germany is unable to take steps outside German territory towards rearmament.
Austria shall not employ or train in military or civil aviation or in the experimentation, design, production or maintenance of war matériel:

persons who are, or were at any time previous to March 13, 1938, nationals of Germany;

or Austrian nationals precluded from serving in the Armed Forces under Article 18;

or persons who are not Austrian nationals.

Article 42

united nations property in austria

In so far as Austria has not already done so, Austria shall restore all legal rights and interests in Austria of the United Nations and their nationals as they existed on the day hostilities commenced between Germany and the United Nation concerned, and [Page 1198] shall return all property in Austria of the United Nations and their nationals as it now exists.
The Austrian Government undertakes that all property, rights and interests passing under this Article shall be restored free of all encumbrances and charges of any kind to which they may have become subject as a result of the war with Germany and without the imposition of any charges by the Austrian Government in connection with their return. The Austrian Government shall nullify all measures of seizure, sequestration or control taken against United Nations property between the day of commencement of hostilities between Germany and the United Nation concerned and the coming into force of the present Treaty. In cases where the property has not been returned within six months from the coming into force of the present Treaty, application shall be made to the Austrian authorities not later than twelve months from the coming into force of the Treaty, except in cases in which the claimant is able to show that he could not file his application within this period.
The Austrian Government shall invalidate transfers involving property, rights and interests of any description belonging to United Nations nationals, where such transfers resulted from force exerted by Axis Governments or their agencies between the beginning of hostilities between Germany and the United Nation concerned and May 8, 1945.
(a) In cases in which the Austrian Government provides compensation for losses suffered by reason of injury or damage to property in Austria which occurred during the German occupation of Austria or during the war, United Nations nationals shall in no event receive less favorable treatment than that accorded to Austrian nationals; and in such cases United Nations nationals who hold, directly or indirectly, ownership interests in corporations or associations which are not United Nations nationals within the meaning of paragraph 8 (a) of this Article shall receive compensation based on the total loss or damage suffered by the corporations or associations and bearing the same proportion to such loss or damage as the beneficial interest of such nationals bear to the capital of the corporation or association.
(b) The Austrian Government shall accord to United Nations nationals the same treatment in the allocation of materials for the repair or rehabilitation of their property in Austria and in the allocation of foreign exchange for the importation of such materials as applies to Austrian nationals.
All reasonable expenses incurred in Austria in establishing claims, including the assessment of loss or damage, shall be borne by the Austrian Government.
United Nations nationals and their property shall be exempted from any exceptional taxes, levies, or imposts imposed on their capital assets in Austria by the Austrian Government or any Austrian authority between the date of the surrender of the German armed forces and the coming into force of the present Treaty for the specific purpose of meeting charges arising out of the war or of meeting the costs of occupying forces. Any sums which have been so paid shall be refunded.
The owner of the property concerned and the Austrian Government may agree upon arrangements in lieu of the provisions of this Article.
As used in this Article:
“United Nations nationals” means individuals who are nationals of any of the United Nations, or corporations or associations organized under the laws of any of the United Nations, at the coming into force of the present Treaty, provided that the said individuals, corporations or associations also had this status on May 8, 1945.
The term “United Nations nationals” also includes all individuals, corporations or associations which, under the laws in force in Austria during the war, have been treated as enemy.
Only those United Nations nationals who possessed United Nations nationality prior to the date on which their property suffered damage in Austria shall, however, be entitled to compensation in accordance with paragraph 4 of this Article.
“Owner” means the United Nation, or the United Nations national, as defined in sub-paragraph (a) above, who is entitled to the property in question, and includes a successor of the owner, provided that the successor is also a United Nation or a United Nations national as defined in sub-paragraph (a). If the successor has purchased the property in its damaged state, the transferor shall retain his rights to compensation under this Article, without prejudice to obligations between the transferor and the purchaser under domestic law.
“Property” means all movable or immovable property, whether tangible or intangible, including industrial, literary and artistic property, as well as all rights or interests of any kind in property.
The provisions of this Article do not apply to transfers of property, rights or interests of United Nations or United Nations nationals in Austria made in accordance with laws and enactments which were in force as Austrian Law on June 28, 1946.
The Austrian Government recognizes that the Brioni Agreement of August 10, 1942, is null and void. It undertakes to participate with the other signatories of the Rome Agreement of March 29, 1923, in any negotiations having the purpose of introducing into its provisions the modifications necessary to ensure the equitable settlement of the annuities which it provides.
[Page 1200]

Article 48


The annexation of Austria by Germany shall not be deemed to have affected the obligations of the Austrian Government in respect of external loans issued prior to March 13, 1938. The Allied and Associated Powers recognize that the Government of Austria has no obligation in respect of German Government securities freely accepted by the holders thereof in exchange for securities of the Government of Austria, or in respect of these Austrian securities regarding which after March 13, 1938, payment agreements were concluded between Germany and the creditor States.
The Allied and Associated Powers recognize that interest payments and similar charges on Austrian Government securities falling due after March 12, 1938, and before May 8, 1945, constitute a claim on Germany and not on Austria.
The Allied and Associated Powers declare their intention not to avail themselves of the provisions of loan agreements made by the Government of Austria before March 13, 1938, in so far as those provisions granted to the creditors a right of control over the government finances of Austria.
The existence of the state of war between the Allied and Associated Powers and Germany shall not, in itself, be regarded as affecting the obligation to pay pecuniary debts arising out of obligations and contracts which existed, and rights which were acquired before the existence of the state of war, which became payable prior to the coming into force of the present Treaty, and which are due by the Government or nationals of Austria to the Government or nationals of one of the Allied and Associated Powers or are due by the Government or nationals of one of the Allied and Associated Powers to the Government or nationals of Austria.
Except as otherwise expressly provided in the present Treaty, nothing therein shall be construed as impairing debtor-creditor relationships arising out of contracts concluded at any time prior to September 1, 1939, by either the Government of Austria or persons who were nationals of Austria on March 12, 1938.

Article 48–bis

Austria acknowledges as a debt, payable by her, monetary loans and also the value of all supplies and services delivered to the Austrian Government by any of the Allied or Associated Powers between May 8, 1945, and the coming into force of the present Treaty.

  1. This proposal was introduced at the seventeenth plenary on Feb. 14. For a record of that meeting, see Sectos 144 and 145, Documents 479 and 480.
  2. For the unagreed articles of the Austrian Treaty as they stood in 1949, see Foreign Relations, 1949, vol. iii, p. 1131.