740.0011 EW (Peace)/11–447
The United States Representative to the Austrian Treaty Commission (Dodge) to the Secretary of State
My Dear Mr. Secretary: With this letter I am delivering the basic material of the report covering the work of the Austrian Treaty Commission.
The Commission met eighty-five times during the period May 12, 1947 to October 11, 1947, inclusive.
The material submitted is composed of the following documents:
- 1.
- The Quadripartite Report of the Austrian Treaty Commission to the Council of Foreign Ministers.58 This is a document composed of the texts of the unagreed articles of the Treaty as proposed by the Delegation. Each delegation submitted a new draft of Article 35 on German assets.
- 2.
- The U.S. Summary of Issues with the positions as they appeared at the end of the Austrian Treaty Conference.59 This document also contains an analysis of the proposed revisions of Article 35 and recommendations for future negotiation.
- 3.
- The Report by the U.S. Delegation of the Austrian Treaty Commission.60 This is divided into nine chapters, each with its own index. It relates primarily to German assets in Austria and covers the various categories of German assets discussed in the Commission. [Page 674] A copy of the index to each Chapter is attached61 so you can see the nature of the treatment and scope of the coverage. Of particular interest to you will be Chapter I, General Summary and Recommendations, and Chapter IX, Possibilities for a Cash Settlement and Austria’s Capacity to Pay.
- 4.
- This is supplemented by folders corresponding to the nine chapters of the Report of the U.S. Delegation. In each is bound the appropriate chapter and the related documents considered by the Commission at its discussions. These folders are provided for ready reference and compile the official material connected with each subject.
- 5.
- The stenographic transcripts of the discussions at each of the meetings.
Fifty copies each of the quadripartite report to the Council of Foreign Ministers, the U.S. Summary of Issues, and the Report of the U. S. Delegation on German Assets (the latter including 20 sets with all related documents) are being transmitted to the Department. In addition, complete files of working papers and transcripts have been transferred to London.
The principal accomplishments of the meetings of the Commission and the work of the U.S. Delegation may be summarized in this way: The accumulation by each Delegation of a vast quantity of detailed information regarding the former German ownership of assets in Austria, which has not heretofore been available; clarification of issues with respect to Article 35 on German assets and other unagreed Articles of the Treaty; and a much clearer understanding, with an approach to unification, of the United States, French and British views.
While the U.S., French and British positions have been more nearly consolidated, this has served to emphasize the substantial differences between their views and that of the Soviet Delegation. These differences appear greater than at Moscow. In part this may be due to the further clarification of positions.
The heart of the problem is the matter of the amount and the nature of the Soviet claims on Austria. In the opinion of the U.S. Delegation, these are unbearably excessive, far more than was agreed at Potsdam, and far more than a free Austria can afford. The nature and extent of these claims are summarized in Part II of Chapter I of the U.S. Delegation’s report.
The recommendations contained in the Report are of two kinds, first, with reference to the terms of a definition of German assets; and, second, with reference to the terms and the possibilities for a specific offer to be made to the U.S.S.R. which could be utilized in lieu of a definition. The latter approach, in my judgment, offers the more hopeful prospect for agreement in view of established difficulties in agreeing [Page 675] on an acceptable treaty article. I am presently considering the details of such an offer with appropriate officers of the Department.
Because the meetings in Vienna extended over a much longer period than was anticipated, there was considerable pressure and urgency in the preparation of the Report. However, it is complete except for any minor corrections, revisions, or modifications which may be made necessary by a re-check of the material. Corrections will be incorporated in the report prior to the meeting of the Council of Foreign Ministers.
For myself and Mr. Ginsburg, I wish to pay a high tribute to the energy, ability and application of all the members of the staff who worked on this problem, and to the unfailing and constructive cooperation of Lieutenant General Keyes and Minister Erhardt and their respective staffs in carrying out the assignment.
Mr. Ginsburg, who acted as my Deputy and, after I left Vienna, carried on the negotiations for a period of about six weeks and who is mostly responsible for the form and content of this Report, cannot be commended too highly.
Very sincerely yours,