Foreign Relations of the United States, 1952–1954, Germany and Austria, Volume VII, Part 2

110.11 AC/7–252: Telegram

No. 807
The United States High Commissioner for Austria (Donnelly) to the Department of State

confidential

Vienna, July 2, 1952—8 p.m.

23. In conversations with Secretary, Aust officials here, for most part, anxious only for general exchange of views. Chancellor himself having expressed view that he felt it wld be more helpful for Secretary to meet Aust Govt and gain general impression of Aust situation than to discuss specific issues.

1. Federal President greeted SecState as “one of leading statesmen of a great nation with which Aust has always lived in peace and friendship.” He expressed Austria’s thanks for generous US aid and sent greeting to President Truman.

In reply Secretary expressed appreciation for hospitality shown him by Govt, emphasized common cultural heritage which linked two countries and said this bond was further enriched by recent visits to US of Chancellor Figl and Vice Chancellor Schaerf.

Secy also paid tribute to progress made by Aust in time of trial which has strengthened morale of other peoples who are also under pressure.

2. Call on Chancellor was concerned primarily with his report on Govts action in econ field along lines discussed during his Wash visit (Embtel 12 July 1¹). Figl expressed Aust gratification with Secy’s visit which was proof that Aust cld count on US friendship.

Secy expressed his appreciation for progress made by Aust Govt on econ problems and assured Chancellor of continued US interest in Austs development.

3. Vice Chancellor Schaerf expressed appreciation for Secy’s visit and attached greatest importance to spontaneous public acclaim for him. Schaerf also considered it significant that Commies had dropped plans for anti-US demonstrations at last minute because of Sov instructions and because Commies realized overwhelming majority of public against them (Embtel 4074 June 30²).

4. In talks with FonMin, Gruber inquired re US views on Austs admission to UN, with particular reference to “bloc” admissions, Secy replied that matter was under constant study, but pointed out difficulty of reaching general agreement on this question. Discussion then turned to State Treaty and it was suggested as next move West powers shld send Sovs another note. Possibility of placing Treaty problems before UN General Assembly was also discussed and it was agreed Gruber wld discuss this course in greater detail with Perkins and Jessup (Embtel 22³). Gruber also gave Secy his impressions of his recent visit to Tito (Embtel 4042 June 26⁴).

5. During Emb garden party, Secy had brief but cordial conversation with Sov HICOM, who expressed pleasure at mtg personally man about whom he had heard so much. In jocular vein, Sviridov expressed hope Secy had brought peace with him, to which Secy replied that was something “we will have to do together.”

6. In separate conversations after reception, both Fr and Brit HICOMs referred to West cooperation in Aust, alluded to maintenance and possible augmentation of West forces here, with concomitant problem of occupation costs, with Payart particularly stressing Fr need for further occupation funds. Both Caccia and Payart inquired re Secy’s impressions on general situation, to which Secy replied that in his opinion there were no symptoms at present indicative of early dangerous developments.

Donnelly

1. Telegram 12 reported Figl’s statements to Secretary Acheson concerning several problems which were discussed during Figl’s visit to Washington in May. Figl noted that the investigation of the nationalized banks was now completed; the Limor investigation was begun; and the final reply to the MSA letter of Jan. 7 concerning fiscal policies was ready for his signature. (110.11 AC/7–152)
2. Telegram 4074 noted that Schaerf told Secretary Acheson that the Austrian security police had learned that local Communists received orders on June 29 from the Soviets instructing them not to interfere with his visit. (110.11 AC/6–3052)
3. See footnote 1, infra.
4. Telegram 4042 summarized the results of Gruber’s visit to Belgrade beginning on June 19. Gruber, impressed with the cordiality of his reception and the frankness of the discussions with Tito, told Embassy officials that the results of his trip could be measured more in better relations between Austria and Yugoslavia than in agreements reached during his meetings with Yugoslav officials. (663.13/6–2652)