710.J/4–1048: Telegram
The Acting Secretary of State to the Secretary of State, at Bogotá
Telmar 42. Personal for the Secretary from Lovett. You will recall JCS opinion that for military reasons, in particular troop withdrawal, Austrian treaty undesirable at this time.1 We believe there are valid political and economic grounds for our continuing to endeavor to negotiate a treaty which will fully meet Austrian requirements. Dept considers it unlikely that Sovs will accept conditions US stipulates as essential for Austrian independence. Sov responsibility for break on these terms should be clearly understood in Austria. To meet latest Sov concessions on lump sum, Dept is instructing US Dep to propose compromise amount 125 million dollars but to insist on 2-year moratorium initial payment. Dept thinks no other solution would be consistent with Austria’s reasonable capacity to pay. We would recommend that if subsequent negotiations yield prospect of treaty on US terms, question of conclusion be referred to National Security Council. In any event, it is unlikely that treaty could be completed for submission to present session Congress. Meanwhile situation may become clearer than at present.
(Sent to Bogotá as Telmar 42 repeated to London, Reber Eyes Only as 1269).