Foreign Relations of the United States, 1952–1954, Germany and Austria, Volume VII, Part 2

S/S–NSC files, lot 63 D 351, NSC 38 Series

No. 876
Memorandum by the Under Secretary of State (Smith) to the Executive Secretary of the National Security Council (Lay)¹

top secret

Washington, July 23, 1953.

Subject:

• Fourth Progress Report on NSC 38/4² and NSC 38/6,³ “Future Courses of U.S. Action with Respect to Austria” (including reference to NSC 63/1).

1. NSC 38/4 was approved as Governmental Policy on November 18, 1949; NSC 38/6, on May 5, 1950. It is requested that this Progress Report, covering the period June 15, 1951 to June 15, 1953 be circulated to the members of the Council for their information.

2. No important four-power negotiations on the Austrian Treaty have taken place since the fall of 1949. The Soviets have refused to discuss the abbreviated treaty text which the Western Powers proposed as a basis for renewed negotiations in March, 1952. In December, 1952 the UN General Assembly, by a vote of 48–0 with the Soviet bloc abstaining, urged the occupying powers to renew negotiations with a view to concluding quickly an Austrian settlement. On April 30, 1953 the NSC considered U.S. policy on the treaty and agreed that the Department of State should be authorized to enter into negotiations for an Austrian Treaty, if necessary on the basis of the long draft Treaty (NSC Action No. 778).⁴ In May the Soviets refused to attend a meeting of the Treaty Deputies on the grounds that the Deputies lacked competence and in any case would not succeed.

3. The British, French and Soviets continue to collect occupation costs from the Austrian Government, which recently has stated that no reason exists for the maintenance of occupation forces in Austria.

. . . . . . .

5. Shipment of equipment for the 28,000 man post-treaty Austrian army is over 80 per cent (money value) complete. The Austrian program, which comprises solely army items, totalled $68.2 million as of May 30, 1953. It is designed to provide major equipment for two constabulary-type divisions. Part of the stockpile is in the custody of the Commanding General, U.S. Forces Austria and the remainder in France and Germany. The question of the future location of this stockpile is under study.

6. Construction of an airstrip in the Western Sectors of Vienna, which would be operational for C–47’s, has been found not to be feasible (NSC 63/1, “U.S. Policy in the Event of a Blockade of Vienna,” approved as Governmental policy on February 17, 1950⁵).

7. In view of changes in the Austrian situation and the full or near completion of certain actions covered in existing NSC papers on Austria, the Department of State considers that a new NSC paper on Austria should be initiated. Accordingly, a new paper, which has been prepared within the Department of State, is now being circulated at the working level and will soon be submitted to the Council.

W. B. Smith

1. Attached to the source text was a covering memorandum which briefly summarized the contents of this Progress Report. According to NSC Action No. 885, the National Security Council, at its meeting on Aug. 13, 1953, noted this Progress Report and the fact that the Department of State was preparing a proposed revision of these policies. (Eisenhower Library, Eisenhower papers, Whitman file)
2. Foreign Relations, 1949, vol. iii, pp. 1190–1197.
3. See the editorial note, ibid., 1950, vol. iv, p. 397.
4. For the memorandum of discussion of this meeting of the National Security Council, which includes NSC Action No. 778, see Document 864.
5. Foreign Relations, 1950, vol. iv, p. 372.