22. Telegram From the Embassy in the Soviet Union to the Department of State1

1791. Reference Embtel 1789.2 Three Western representatives met with members Austrian delegation and were given account of yesterday’s meeting and present status discussions by Figl.

Molotov, Mikoyan, Gromyko and Ilichev were principal officials on Soviet side yesterday.

1.
Molotov made statement that Soviet Government was prepared to sign Austrian draft treaty as soon as possible. They were willing to fix a date in “very short time” for withdrawal of all foreign troops.
2.
Soviet Union was prepared to return on signature of treaty to Austrian Government oil properties and assets of Danube Shipping Company as specified in Article 35 in return for deliveries of oil from Austria to Soviet Union to be spread over six years in quantities to be fixed.
3.
Soviet Government repeated its Berlin offer (Article 35 clause 6) concerning 150 million dollars and method and length of payment.3
4.
While no changes were proposed in actual text, there were a number of articles which no longer reflected current situation and this would be taken into consideration in their application.
5.
Austrian Government should make “nationally binding” declaration of its intention not to participate in any military alliances or to permit foreign military bases on its territory. This declaration to be outside treaty.
6.
Guarantee by four powers of independence and sovereignty Austria also to be outside text of treaty. Soviets gave no indication of exact form of this guarantee but cited guarantee of Switzerland as example.
7.
Soviets made no specific proposal in regard to subsequent conference but indicated that they expected Austrian Government Would be helpful in arranging such a conference to complete and sign treaty. Soviets emphasized that conference would deal only with Austrian treaty. They didn’t specify level but clearly seemed to have in mind eventual foreign ministers meeting but did not make any objection to preliminary Ambassadors’ or other preparatory meeting.
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Figl in giving this information emphasized that Austrian delegation was staying completely within framework of procedure which had been discussed with representatives three Western powers in Vienna and made entirely clear (which Soviets apparently accepted) that they did not intend to reach any form of agreement implied or otherwise here but merely to take back to Vienna clarification of Soviet position. Austrian Government naturally hopes that this clarification would form basis for future conference at which Austrian treaty might finally be concluded.

Although Austrian delegation is understandably pleased and even elated at present Soviet attitude, they are realistically aware that snags may arise in further conversations during their stay in Moscow. However, as matters now stand, and if Soviets back up in concrete form the positions adopted yesterday, they believe that prospects for conclusion treaty are bright.

On troop withdrawal Soviets did not indicate fixed period for total withdrawal and Austrians will endeavor to obtain clarification on this point today. However, from Soviet statements yesterday they believe period will be quite short.

In addition to troop withdrawal Austrians naturally attach great importance to declared willingness Soviets to give back ownership of German assets under Article 35 and their general impression was that oil deliveries over six years would not be too difficult to work out.

Chief point, of course, remaining obscure, in addition to date troop withdrawal, is exact nature of four-power guarantees which Soviets have in mind.

As of considerable interest in reflecting basis present Soviet attitude, last night at dinner Austrian Embassy Bulganin in his toast stated that in past Soviet Government had linked Austrian and German question in hope that a settlement would facilitate solution of German problem but now this was not possible and therefore Soviet Government saw no reason for any further delay in conclusion Austrian treaty.

Another meeting is set for 11 a.m. this morning. We will receive this afternoon information on results.

Bohlen
  1. Source: Department of State, Central Files, 663.001/4–1355. Secret; Niact. Repeated to London, Paris, and Vienna.
  2. In telegram 1789, April 12, midnight, Bohlen reported that the Austrian Delegation was extremely optimistic after its first meeting with the Soviet Delegation and that representatives of the three Western Embassies would meet with the Austrians at their Embassy at 10 a.m. on April 13. (Ibid., 663.001/4–1255)
  3. For text of the Soviet proposal on Article 35, Clause 6, as presented at the Berlin Conference, January 25–February 18, 1954, see Foreign Relations, 1952–1954, vol. vii, Part 1, p. 1202.