Foreign Relations of the United States, 1949, Council of Foreign Ministers; Germany and Austria, Volume III

CFM Files: Lot M–88: Box 142: United States Delegation Minutes

United States Delegation Minutes of the First Part of the 20th (5th Restricted) Meeting of the Council of Foreign Ministers, Paris, June 14, 1949, 3:30 p.m.

Paris, June 14, 1949, 3:30 p.m.

secret

First Part

Present

U.S.S.R.

• Mr. Vyshinsky (Chairman)
• Mr. Smirnov
• Mr. Pastoyev

United Kingdom

• Mr. Bevin
• Sir I. Kirkpatrick
• Mr. Peyton-Smith

United States

• Mr. Acheson
• Mr. Jessup
• Mr. Bohlen
• Mr. Reber (for Austrian Discussion)

France

• M. Schuman
• M. Parodi
• Interpreter

Mr. Vyshinsky said that the Soviet Delegation had studied the two memoranda (USDel Working Paper/39 and USDel Working Paper/32 (Rev. 5)¹) submitted last Sunday taking into account the oral statements made by the three Ministers at the time and he was in a position to give an answer to both of these papers.

1. On the Austrian Treaty since it appears that the three other Ministers were prepared to meet all Soviet claims of former German assets as set forth in the Soviet paper of January 24, 1948,² the Soviet Delegation saw no objection to the payment of $150,000,000 for the transfer by the Soviet Union of the properties indicated in that memorandum. The Soviet Government, therefore, was prepared no longer to support Yugoslav claims on reparations and on the frontier question. It was likewise acceptable that the Deputies should be instructed to complete the drafting of the treaty by September 1, 1949. It would appear, therefore, that the four powers were agreed to settle the Austrian Treaty on the basis of M. Schuman’s memorandum. He stated that he must recall that the Soviet Government still considers the Yugoslav claims as justified both in regard to reparations and the frontiers, but since the three other powers would not agree, the Soviet Union was prepared to meet their wishes and would not insist on satisfaction of these claims in return for satisfaction of the Soviet Union of its claims to German assets in Austria and with the understanding that Yugoslavia would obtain the Austrian assets in Yugoslavia.

2. In regard to the German question the Soviet Delegation was ready to accept as a basis for discussion Mr. Acheson’s memorandum (USDel Working Paper/32 (Rev. 5)). The Soviet Delegation, however, had certain changes and additions. Mr. Vyshinsky then introduced his amendments and additions to the Secretary’s memorandum (USDel Working Paper/42³). Mr. Vyshinsky read through the amendments and when he came to point 5 he said that the Soviet Government had had difficulties in regard to point 5 as set forth in Mr. Acheson’s memorandum. He stated that the Soviet Government could not accept the proposal to turn over to the Western Allies the Helmstedt Autobahn. This road was in the Soviet Union [zone?] and there were no grounds in their view for creating a Danzig corridor.

M. Schuman said he thought as regards Austria they could consider that they were agreed on the four basic questions which he listed as follows:

1. The payment of $150,000,000 by the Austrian Government to the Soviets for the properties previously held by the Soviets.

2. No reparations from Austria. The Yugoslavs could get Austrian assets in Yugoslavia.

3. The frontiers of Austria remain as they were, and

4. All other claims of a financial nature against Austria arising out of these properties, covered in Article 48 bis, and past claims for occupation costs would be waived.

Mr. Vyshinsky said he did not understand the last point; that M. Schuman’s memorandum had only contained three and that the question of claims dealt with under Article 48 bis of the draft treaty was quite a different subject and was unagreed.

M. Schuman said he had been in error, but what he had in mind is that any future charges or claims concerning the property relinquished to the Austrian Government should be covered by the payment of the $150,000,000.

Mr. Vyshinsky said that the $150,000,000 was only for German assets and not for other claims. He said that 48 bis was still unagreed and that the Deputies should consider it, but that it was not covered in M. Schuman’s memorandum.

Mr. Bevin inquired whether Mr. Vyshinsky meant the claims under 48 bis only or those arising out of the control of the property to be returned to Austria.

Mr. Vyshinsky said that they were both as there might be certain claims in connection with the property. It was agreed that there should be an intermission to study Mr. Vyshinsky’s proposals and statements and that the three Ministers would communicate with Mr. Vyshinsky regarding the time for a later meeting that afternoon.

[At this point there was an intermission to allow the Western Ministers to study the Soviet amendments to USDel Working Paper/32 Rev. 5.]⁴

1. The reference to USDel Working Paper/39 is in error since this paper was not presented until the second part of the 20th meeting. Vyshinsky was referring to the Tripartite memorandum presented to Mr. Vyshinsky at the 19th Meeting which is printed on p. 1053. For the text of USDel Working Paper/32 Rev. 5, see p. 1051.
2. The reference here is to the Soviet proposal on German Assets in Austria (Article 35), circulated at the first meeting of the Austrian Deputies in February, 1948, as CFM(D) (L) (48) (A)1. The text of this proposal is printed in Foreign Relations, 1948, vol. ii, chapter vi.
3. Not printed; the amendments introduced by Vyshinsky to USDel Working Paper/32 Rev. 5 are indicated in the footnotes to that paper.
4. Brackets appear in the source text.