Foreign Relations of the United States, 1955–1957, Austrian State Treaty; Summit and Foreign Ministers Meetings, 1955, Volume V

30. Telegram From the Embassy in the Soviet Union to the Department of State ¹

Moscow , April 19, 1955—3 p.m.

1843. Following is translation of oral statement made to me this morning by Molotov concerning results Austrian talks:²

“From 12 to 15 April in Moscow there took place negotiations between Soviet Government and Governmental Delegate of Austria. As a result of these negotiations agreement was reached on number of basic questions connected with conclusion state treaty with Austria.

Austrian Governmental Delegate undertook to see to adoption on part of Austria of following measures:

(1) In spirit of statement made by Austria at conference Berlin in 1954 concerning non-participation in military alliances and prohibition of military bases on territory of Austria, Austrian Government will make a declaration in form placing upon Austria an international obligation to effect that Austria will permanently (postoyanno) maintain neutrality of a similar type to that maintained by Switzerland.

The declaration of Austrian Government will be presented for adoption of decision to Austrian Parliament immediately after ratification of state treaty with Austria. Government of Austria will undertake all appropriate steps in order that the declaration confirmed by Parliament of Austria should receive international recognition.

(2) Government of Austria will welcome giving by four great powers of guarantee of integrity and inviolability of Austrian state territory and will support with Governments of France, Great Britain, USA and Soviet Union such a declaration concerning guarantee by the four great powers.

(3) Following transfer to Austria of German assets in eastern Austria the Federal Government of Austria will undertake measures in order to exclude transfer of these assets to ownership foreign citizens including juridical persons of private or public law.

For its part Soviet Government expressed its willingness to sign Austrian state treaty without delay and also agreed that all occupation forces of four powers would be withdrawn from Austria following entry into force of state treaty not later than December 31, 1955.

In addition Soviet Government declared its willingness to take part in the giving by four powers of guarantee of integrity and inviolability of Austrian state territory along model of Switzerland.

The parties came to agreement also on following economic questions:

1. Soviet Government expressed its willingness to accept the equivalent of the total sum of 150 million American dollars contained in Article 35 of state treaty entirely by means of delivery of Austrian goods which would be delivered to Soviet Government in yearly installments over six years in amount of 25 million American dollars annually.

2. Soviet delegation accepted proposal of delegation of Austria that Austrian Government in return for transfer to Austria of oil installations and oil refineries belonging to USSR to effect payment by means of deliveries to Soviet Union of crude oil in amount of one million tons annually over ten years, in all 10 million tons.

3. Soviet side agreed to transfer to Austria all assets of Danube Shipping Company located in eastern Austria including shipbuilding ways in Korneuburg, ships and port installations for which Government of Austria will pay Soviet Union two million American dollars simultaneously with transfer of these assets to Austria.”

Information in statement coincides very closely with that already received from Austrians but it is noted that Soviet statement refers to “agreements” reached on these questions and formulation of Austrian declaration reveals importance which Soviet Government attaches to this point. It is noted that although model is Switzerland, no mention is made of understanding concerning Austrian participation in UN. Guarantee is not clarified as to content beyond reference to Swiss model but reference is made to Soviet willingness “to take part” in four-power guarantee. There is thus no indication in this statement concerning possibility unilateral guarantee. On this point I sought to obtain further clarification from Molotov and asked him if he could tell me exactly what type of guarantee Soviet Government envisaged. He stated that this subject had not been clarified at all in Austrian talks as it was matter for four powers. He added that it was one of subjects that could be discussed at Foreign Ministers’ meeting which Soviet Government was proposing but did not go beyond these remarks.

Bohlen

1. Source: Department of State, Central Files, 663.001/4–1955. Secret; Niact. Repeated to London, Paris, and Vienna.
2. At 1 p.m. Bohlen cabled that Molotov had seen him at noon and read him the text of this oral statement. Molotov then handed Bohlen note No. 31/OSA which, inter alia, called for a meeting of the Foreign Ministers of the United States, the United Kingdom, France, the Soviet Union, and Austria at Vienna for the conclusion of an Austrian State Treaty. (Telegram 1842 from Moscow, April 19; ibid.) Russian and English texts of the note and the Russian text of the oral statement were transmitted as enclosures to despatch 407 from Moscow, April 19. (Ibid.) For text of the note, see Department of State Bulletin, May 2, 1955, p. 734 or Documents (R.I.I.A.) for 1955, pp. 224–225.