Office of the Historian

325. Memorandum From the Deputy Assistant Secretary of State for European Affairs (White) to the Deputy Under Secretary of State for Political Affairs (Hare)0

Washington, May 17, 1960.

SUBJECT

  • OCB Consideration on May 18, 1960 of the Semi-Annual Appraisal of US Policy Toward Austria (NSC 5603, dated March 23, 1956)1

Salient Features

There has been no basic change in Austrian policy, or in US policy vis-à-vis Austria, since the last semi-annual review.2 However, in view of the fact that the NSC policy paper was written in late 1955 (although dated 1956), its usefulness would be greatly enhanced if it were brought up to date.

For instance, there is no mention of US recognition of Austrian neutrality, which took place after the report was written, or of the South Tyrol question, which was not an active issue in 1955. In addition, there have been certain changes in the military collaboration between the US and Austria which should be reflected in the paper.

Possible OCB Discussions

In view of the fact that the members of the Working Group on Austria were unanimous in believing that the policy paper should be [Page 826] brought up to date, there will probably be relatively little discussion. However, the following subjects may be brought up:

1.
South Tyrol. It now seems likely Austria will ask this session of UNGA to request the ICJ for an advisory opinion on the South Tyrol dispute despite the fact that the US, UK, France and the USSR, in uncoordinated approaches to the Austrians, have indicated disapproval of bringing the question before the UN. We have told both the Austrians and the Italians that we favor continuation of bilateral negotiations, and, if they should fail, we believe consideration should be given to referring the matter to International Court of justice in a “contentious proceeding”.
2.

Austrian Assets Treaty, the Vienna Memorandum and Persecutee Claims. The Senate Foreign Relations Committee on May 9 voted not to take action on the Austrian Assets Treaty (the Treaty would implement our obligation under the State Treaty to return Austrian assets in the US). Therefore it is virtually certain the Senate will not approve the Treaty this session.

It seems likely this will have no adverse effect on the “Vienna Memorandum” agreements about to be finalized between Socony–Mobil and the Austrian authorities settling the former’s claims.

However, the Committee’s action may have some adverse effect on the Austrian Parliament, which is considering passing legislation further to implement Austria’s obligations under Article 26 of the State Treaty to persecutees, principally Jews.

3.
US-Austrian Military Collaboration. The small ($301, 000) training program for Austria was approved for FY 1960 and will probably be continued at virtually the same level for FY 1961. We plan to give no new grant assistance to Austria.

The Austrians have asked to buy certain military equipment, including 40 military aircraft. The Pentagon has offered to sell 36 aircraft of a type similar to that requested and is conducting price and availability studies on the other items.

Clearances

L/EUR, INR, S/P, U/MSC. There are no unresolved differences in the Department.

Recommendation

That you recommend approval of the Semi-Annual Appraisal of US policy toward Austria.3

  1. Source: Department of State, OCB Files: Lot 62 D 430, Austria. Secret. Drafted by Wells. Attached to the source text was a cover sheet, dated May 16, that reiterated the recommendation to review U.S. policy toward Austria.↩
  2. See footnote 1, Document 295.↩
  3. See Document 322.↩
  4. No written semi-annual appraisal of U.S. policy toward Austria has been found in Department of State files; however, a memorandum from Bromley Smith to James Lay, May 25, noted that the OCB had decided on May 18 not to submit a report to the NSC but had recommended that NSC 5603 be updated in view of new developments since it was drafted in 1955. (Department of State, OCB Files: Lot 62 D 430, Austria)↩