177. Telegram From the Department of State to the Embassy in Austria0

854. Following based on uncleared memcon.1 Foreign Minister Kreisky called this morning on Acting Secretary Ball and held cordial and frank discussion question Austrian association with Common Market. Kreisky indicated Soviets appreciated need Austria work-out “arrangements” with Common Market but Khrushchev had politely indicated that for Austria to go too far in direction of membership would have serious consequences. Kreisky indicated language relating political aspects Austrian association which delivered at hearing before Six in July had in effect been cleared with Gromyko. Kreisky said he not pessimistic that solution re Austrian association could be found and was convinced that will existed on the part of Six to find solution. Formula to be worked out needed to be more than just trade agreement because that was not enough and yet less than customs union since that not achievable. Agreement would have to include provision for harmonization Austrian social policy and cover such matters as capital and labor markets. Kreisky stressed importance of Austrian people feeling that they participating to some extent in European integration.

In reply Acting Secretary’s question re timing, Kreisky indicated that he thought exploratory talks could go on now for one to two months and then would be followed by formal negotiations lasting 8 to 9 months. To Acting Secretary’s observation that EEC running out of qualified people conduct negotiations, Kreisky replied that separate special group had been working on matter Austrian association and individuals involved (Seeliger) happy for chance to become involved in negotiations.

  1. Source: Department of State, Central Files, 763.13/9–2762. Secret. Drafted by Stone, cleared by U and S/S, and approved by Tyler. Repeated to Brussels and USUN for the Secretary.
  2. A copy of the memorandum of the BallKreisky conversation is ibid., Secretary’s Memoranda of Conversation: Lot 65 D 330.