740.00119 Council/3–2847: Telegram
The Secretary of State to the Acting Secretary of State
urgent
1074. Delsec 1363. For the President, Vandenberg, Connally and Acheson from Marshall. Sixteenth CFM, 28 March, Bevin presiding, resumed discussion of German assets in Austria, with Marshall indicating his points of agreement to Bidault’s proposals (see 15th CFM)91. Marshall agreed with proposal one and two. As regards Bidault’s third proposal, Marshall was willing to omit further discussion of this problem by the deputies if CFM would agree that [Page 296] article 57 provided a means of arbitration for settlement of disputes. He then proposed that CFM reach agreement in principle on this subject and direct the deputies to incorporate the various views into suitable proposal.
Molotov rejected Bidault’s second proposal because its limited application would deprive Austria of so little in the way of transfers. He also objected to Austria’s having a voice in the determination of German assets. He pressed for substitution of a proposal which would define German assets in Austria as excluding those taken by direct, forcible action without compensation.
Bevin stated that he was working on the basis that everyone wanted to be fair and to avoid allied support to the fraudulent methods Hitler employed in acquisition of property in Austria. He, as well as Marshall, rejected Molotov’s proposal. There followed considerable discussion as to the next move with Molotov attempting to stop further consideration of the problem until the Austrian treaty was considered as a whole. It was finally agreed that the matter would be referred back to the deputies for their further consideration.
The Coordinating Committee (see fourteenth meeting)92 then submitted its report.93 Marshall said there were too many points of disagreement to resolve in the Council and suggested that the Council limit its immediate discussion to the following three items: (A) treatment of Germany as an economic unit; (B) review of levels of industry and resumption of reparations; (C) form and scope of provisional government. The other matters relating to the report would be referred at once to a special committee to make recommendations to the Council for the adoption of such directives as the Committee members, acting under instructions from their respective ministers, can agree upon. After a discussion, in which Bevin and Bidault declined to commit themselves and Molotov suggested adding demilitarization, it was agreed that the Marshall proposal would be considered tomorrow.
Molotov then resumed discussion of participation of allied nations in the preparation German peace treaty and the peace conference. He held out strongly for limiting the participation to the 18 nations already listed plus, of course, Albania.94 Marshall rejected this position and reiterated the previous United States position. Molotov went [Page 297] through the second chorus of his act and it was finally unanimously decided to refer the problem back to the deputies.
Department please pass to Vienna as 18, to Rome as 16, and to Paris as 90.
Repeated London 111, Berlin 183.
- For the substance of Bidault’s proposals, see telegram 1056, Delsec 1358, March 27, from Moscow, supra.↩
- For the report on the Council’s 14th Meeting, March 26, see telegram 1030, Delsec 1353, March 26, from Moscow, p. 292.↩
- The text of the Report of the Coordinating Committee was circulated to the Council in documents CFM(47) (M)64, March 26, and CFM (47) (M) 74, March 28, pp. 401 and 409.↩
- For a fuller account of Molotov’s statement on the composition of a German peace conference, see Molotov, Speeches and Statements at Moscow, pp. 49–50.↩