740.00119 Council/4–248: Telegram
The Acting Secretary of State to the United States Deputy for Austria at the Council of Foreign Ministers (Reber), at London
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1152. Ausdel 10. For Reber. Delsecs 1651 and 1653.1 Dept realizes difficulty of problem confronting you as result Soviet concession on lump-sum payment but does not believe problem can be met by agreement in part or agreement in principle on several parts. Concerned lest any agreement in principle on figure higher than 100 million dollars would only be on record for use against us by Soviets in future or serve as basis for bilateral deal in case failure of negotiations.
Would it not be helpful to submit paper setting forth all elements of a proposal for settlement assets problem including such authorized concessions as may presently seem appropriate, leaving blank for figure of lump-sum (or alternatively inserting figure $100 million) and otherwise advancing provisos Ausdel 9?2
Your position can be that lump-sum figure should be finally determined only as residual item in light of total Austrian burdens. Hence necessity to reach some understanding on other points. Putting in complete proposal would serve as basis for attempting to shift discussion to these points. Soviet statement reported Delsec 1653 seems to leave door open for such shift.
We appreciate that on properties your margin for trading is slim but doubt that you should use all your authorization at this time. Suggest you might wish to name refineries for transfer Soviets. Proposal on net profits must be sufficiently tight to leave no loopholes under which Soviets could later claim right to withdraw bulk of production or convertible currency by reason of operation of clause protecting Austria’s minimum requirements.
Sent London 1152 Ausdel 10 for Reber; rptd Vienna 311 for Keyes and Erhardt only.