Foreign Relations of the United States, 1955–1957, Central and Southeastern Europe, Volume XXVI

1. Memorandum From the Secretary of State’s Special Assistant for Mutual Security Affairs (Nolting) to the Assistant Secretary of Defense for International Security Affairs (Hensel)²

Washington, May 25, 1955.

SUBJECT

• Austrian Stockpile A

We have reviewed the Army memorandum on Stockpile A which you transmitted to me by your memorandum of May 20, 1955.³ As you know, the problem of making available Stockpile A to the Austrians has been under study in this Department, and we have had a number of discussions with members of your staff. As a result, the Department queried Ambassador Thompson for his views on this matter. His reply (Vienna 2803, May 18, 1955, Top Secret)⁴ sets forth a proposed course of action which is concurred in by the Department.

Accordingly, the Department believes that the following steps should be taken:

(1) The Department of Defense should initiate an action to obtain a Section 401 Presidential determination prior to June 30, 1955. This determination would authorize the transfer of equipment in the amount of $20 million from Stockpile A to the Austrian Government. A further Presidential determination under Section 401 would be sought to authorize turning over an additional $20 million of equipment from Stockpile A to the Austrian Government as early as possible in FY 1956.⁵

(2) The Commanding General, USFA, be authorized to make available to the Austrian Government gendarmérie type equipment required for approximately 2,500 men. This should complete the equipping of 8,500 men for the gendarmérie. To the extent possible, equipment now in the hands of USFA should be used to meet these requirements. This equipment and any other equipment previously loaned to the Austrian Government for the gendarmérie should be a charge against Stockpile A, and should be a part of the Section 401 determination.

(3) Prior to the withdrawal of United States troops, any equipment additional to that required for (2) above should be called forth from the Stockpile only to the extent requested by the Austrians and with the concurrence of Ambassador Thompson and the Commanding General, USFA.

(4) Except as any equipment may be moved under (2) and (3) above, the Stockpile should remain at Leghorn and, after the withdrawal of United States troops from Austria, it should be the responsibility of the Austrian Government to accomplish the movement of the remaining part of the Stockpile from Leghorn into Austria.

(5) It is probable that the equipment which would be made available under the two Section 401 determinations would meet Austrian needs prior to July 1, 1956. However, to the extent that there may remain available in the Stockpile equipment in excess of the $40 million proposed to be transferred in FY 1955 and 1956, such equipment, if requested by the Austrians, and justified by existing circumstances, could be made available on an emergency loan basis pending the enactment of legislation or additional Presidential determinations in FY 1957.

It should be noted that it is probable that the Austrian Government may request equipment in addition to that presently contained in the Stockpile. It would probably be in the national interest of the United States to meet these requests if the Austrians demonstrate a need for this equipment and the ability to absorb and utilize it effectively.

If you concur in the foregoing proposals, we should move rapidly to advise Ambassador Thompson and the Commanding General, USFA, of their content and to secure the necessary Presidential action.

I am sending a copy of this memorandum to the Director, Foreign Operations Administration.

Frederick E. Nolting, Jr.

⁶

2. Source: Department of State, Central Files, 663.001/5–2555. Top Secret.
3. Not found in Department of State files.
4. In telegram 2803, Thompson recommended that the United States turn over gendarmérie-type equipment from stockpile A to Austria before the phase-out of U.S. installations and personnel from Austria. (Department of State, Central Files, 663.001/5–1855)
5. On June 16, President Eisenhower approved the $20 million transfer of equipment to Austria under Section 401. On August 2, he approved an additional $20 million worth of equipment under Section 103 of the Mutual Security Act. (Memorandum, August 2; ibid., 763.5–MSP/8–355)
6. Printed from a copy that bears this typed signature.