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United States Department of State / Foreign relations of the United States, 1948. Germany and Austria

IX. United States participation in the negotiations for an Austrian treaty,   pp. 1447-1535 ff. PDF (34.1 MB)

Page 1448

nists, it would be a favorable sign as indicating Soviet intention to
offer "deal" which they thought had serious chance of -acceptance.
Gruber believes Soviets will submit some sort of proposal to London
soon but ialso feels -that, even should proposal provide real basis for
agreement, Soviets will drag feet in negotiations in order to pro-
long present uncertainty which gives them additional leverage over
Austrian Government in connection with current Soviet unilateral
  Legation believes Soviets may well find it advantageous to submit
in London proposal whi'ch does not shut door on settlement, which
can be used in propaganda to portray Russian generosity and which,
as Gruber suggests, can provide basis for long drawn out negotia-
tions during which Austrian Government, and possibly western Allies,
might be reluctant to resist vigorously -Soviet pressures in Austria.
If this analysis of Russian intentions proves correct, it would appear
that sound US reaction would be, while 'showing perfect willingness
to negotiate on basis of any reasonable Soviet proposal, to insist that
Soviets can demonstrate their sincerity only by eliminating from pro,
posal any provisions infringing on Austrian 'sovereignty and by per-
mitting negotiations to be brought to rapid conclusion.
CFM Files: Lot M-88 : Box 1138: CFM (D) (L).(48)1
Proposal by the Soviet Delegation to the Council of Foreign Ministers
                         on German Assets
 SECRET                                  LONDON, January 24, 1948.
   The Soviet Union shall receive:
   1. (a) Oil Eotraction
   'Concession rights to oil production areas equivalent to two thirds
 of the current production of oil in Austria, as well 'as property rights
 to all buildings, plant, equipment tand other property forming part
 of these production areas, in accordance with the lists and the map
 annexed to the Treaty.
   (b) Oil Prospecting
   ,Concession rights to two thirds of all undeveloped areas in Eastern
 Austria that are German assets to which the Soviet Union is entitled
 in conformity with the Potsdam Agreement and which are in its pos-
 session 'at the present time, in accordance with the list of concessions
 and the maps annexed to the Treaty,
   2. The period of validity of the concessions defined in paragraph 1
 for prospecting 'and for the extraction of oil shall be fifty years.
   3. The Soviet Union shall receive oil refineries having a total annual,

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