53. Telegram From the Delegation at the Vienna Ambassadorial Conference to the Department of State1

2641. Following Soviet statement that he had nothing to add on Article 35, further discussion this article pursued again in restricted session where US Ambassador offered alternative proposal (to that in Embtel 26202) in effort to meet Soviet objection.3 Soviets were told this was as far as US could go without leaving issue unresolved in which case delegates must ask their Foreign Ministers if they prepared to meet under circumstances involving substantive treaty negotiations.

US proposal comprises:

Adoption of present Article 35 with addition of “no German ownership” clause such as that reported as “second US proposal” in Embtel 2620;
Annexation to treaty of economic clauses of Austro/Soviet Moscow agreement with 3 additional stipulations:
Transfer to Austria of oil properties and DDSG to be completed within 2 months after entry into force of treaty;
Oil and DDSG properties to be transferred free of indebtedness and claims as in paragraph 7(E) of Article 35;
Agreement that Austria may restore small properties, houses, etc. to foreign owners (necessity of its stipulation dependent upon degree to which Soviets ultimately willing to waive Moscow east zone “no foreign ownership” clause).

US Ambassador explained that stipulation (1) above might be covered by re-wording of paragraph 8, Article 35 and similarly stipulation (2) by extension of applicability of paragraph 7(E), Article 35, also stipulation (3) would become unnecessary if Soviets fully withdrew “no foreign ownership” clause in Moscow agreement in favor [Page 88] of “no German ownership” clause as proposed in paragraph “A” above.

All representatives agreed to keep offer confidential and to study for discussion Monday. Impression gained that Soviets attracted by all Austria “no German ownership” proposition and will agree.4

  1. Source: Department of State, Central Files, 396.1–VI/5–655. Secret; Niact. Repeated to London, Moscow, Paris, and Bonn.
  2. Document 48.
  3. The restricted part of the fifth Ambassadorial meeting lasted from 4:35 to 5:30 p.m. For a report on the nonrestricted part of the meeting, see telegram 2639, supra.
  4. Following the discussion of Article 35 Thompson informed his colleagues that Secretary Dulles, who was in Paris for a North Atlantic Council meeting, wanted him to be there on May 7. The Ambassadors agreed to adjourn for the weekend and to request instructions from their governments on the remaining issues. They also discussed the date of the Foreign Ministers meeting, but arrived at no decision. (Telegram 2640 from Vienna, May 6; Department of State, Central Files, 396.1–VI/5–655)