14. Telegram From the Department of State to the Embassy in Austria1

1863. Department was prepared for post-treaty period in which Austrian Government would display various signs of going through shakedown period involving coalition difficulties, uncertainties as to use of newly won sovereignty and groping for proper application policy military neutrality. Recent developments have however proved more disturbing than expected and have produced Austrian trends difficult analyze. Such developments as are occurring with respect trade controls, possible Soviet loans and possible Austrian recognition Communist China could constitute signs serious adverse trends in development attitudes and policies post-treaty Austria. There are also some indications that contrary expectations Austrian Government applying neutrality policy beyond area military alliances and bases. These signs seem go beyond expected Austrian effort balance moves toward East and West, e.g., we were not surprised by recognition Albania following recognition West Germany.

Moreover recent behavior of Raab and other Austrian leaders and apparent marked diminution cooperation with West particularly by Peoples Party regarded here as equal in significance to foregoing substantive developments. All of these factors seem to have appeared without any apparent unusual Soviet pressure and with continued benevolent Western policies toward Austria.

Department therefore considering advisability recalling you for consultation soonest after January 1 in effort achieve clearer understanding factors involved and formulate future US courses of action. [Page 29] Mere fact your consultation might prove salutary if before departing you hint to high Austrian officials reason your trip.

Any event not unlikely Congressional committee will insist you testify on budget about January 10.

Your comments requested.

  1. Source: Department of State, Central Files, 763.00/12–2955. Secret; Limit Distribution; No Outside Agencies. Drafted by Compton and Freund of WE on December 28 and signed for Dulles by Merchant.