175. Telegram From the Embassy in Austria to the Department of State0

2169. Reference: Department’s telegram 2403.1 Both Schleinzer and FinMin Klaus, whom I saw at reception last night, delighted with terms DOD offer embodied June 15 Nitze letter.2 Both expressed deep gratitude for US efforts and understanding for difficulties involved in working out proposals which Austria could accept.

Klaus said without reservation that “he could afford” this proposal and would proceed immediately with internal implementation. GOA now intends send two-man team (one each from Finance and Defense Mins) to Washington in about ten days to complete details negotiations.

It obvious great load lifted from Klaus’ mind by US offer. Embassy feels US defense credit to Austria will bring major long-range political benefit, and appreciates efforts all participating Departments.

  1. Source: Department of State, Central Files, 763.56/6–1962. Confidential.
  2. Telegram 2403, June 18, reported on the status of negotiations over the loan. (Ibid., 763.56/6–1862)
  3. Not found.