663.001/8–353: Telegram
No. 881
The United States High Commissioner
for Austria (Thompson) to the Department of
State
297. Kreisky asked to see me alone today. He had seen Schaerf in Bad Gastein over weekend who asked that I be informed he supported withdrawal short draft treaty in present circumstances. Kreisky emphasized Socialists most anxious coordinate policies with us. They worried Raab’s recent moves on international grounds as well as advantage he has gained on Austrian political scene. Indicated would be difficult if not impossible for Socialists to oppose PP on question withdrawal short draft and Socialists persuaded by recent reports particularly lower Austria that failure withdraw would be serious mistake.
Kreisky believes Austrian Government should face up to question of what kind treaty would be acceptable to Austria and indicated his party would try to force early decision by government. His personal view is that present provisions Article 35 re oil unacceptable and that $150 million too much for Austria to pay. Suggested figure should be reduced to $100 million for period of payment extended with payment in goods instead of dollars. Advanced personal suggestion that while Austria should probably not attempt participate in negotiating treaty as whole, she should ask or be invited participate in discussion Article 35.
I did not encourage this idea but believe we should give it serious consideration at appropriate time. While desirable that Austrians be allowed pay in goods elaboration of any list would almost certainly raise difficulties re Battle Act. I did encourage Kreisky to endeavor speed up transmission to us Austrian ideas on substance treaty.