62. Telegram From the Delegation at the Vienna Ambassadorial Conference to the Delegation at the North Atlantic Council Ministerial Meeting, at Paris1

413. Soviets stood firm on their position on Articles 33 and 35.2 During tea interval I informed Soviets that I had received clear indication that Secretary Dulles unwilling come Vienna until these points resolved. Soviets asked whether we insisted upon annex or whether [Page 98] some reference in Article 35 to the Moscow understandings would be sufficient. I said I did not see how this could be worded since if we referred to the economic provisions of the Moscow memorandum, it would cover such matters as trade agreements. I also pointed out this would involve publishing the Moscow memorandum. I suggested better method would be for Soviets and Austrians immediately to sign an agreement in Vienna covering the necessary points, and that in Article 35 we would insert a paragraph reading along the following lines:

“This Article is subject to the provisions of the agreement between the USSR and Austria signed in Vienna on May 2.”

We are preparing and will transmit to Soviets and Austrians a draft text of such agreement. There would not be time for ratification before Ministers meeting, but believe we need not insist upon this as we could delay our ratification until such agreement had been approved.

If we included in Article 35 prohibition against transfer German assets to Germany, I will ask that Soviet Union send Austrians note stating that this paragraph in the state treaty supersedes the provision in the Moscow memorandum prohibiting transfer German assets in eastern zone to foreigners. We could add to the paragraph on this subject in Article 35 a statement that Austria undertakes not to transfer the rights and properties in lists 1 and 2 Article 35 to foreign ownership. Corwin states he has no objection to this.

I continue to believe Soviets will meet our position in some form or other, but time is getting short and Austrian nerves will not stand much more strain.

  1. Source: Department of State, Central Files, 396.1–VI/5–1055. Secret. Repeated to London, Moscow, and Washington. The source text is the copy sent to Washington.
  2. The seventh meeting was held from 2:30 to 5:55 p.m. on May 10 with the same heads of delegation present as at previous meetings. The official verbatim conference minutes and the U.S. Delegation minutes of this session were transmitted as enclosures to despatch 1302 from Vienna, May 11. (Ibid., 396.1–VI/5–1155) For a report on the restricted part of the seventh meeting, see infra and Document 64.