Memorandum, State Department Summary of Telegrams

DEPARTMENT OF STATE VITLE OFFICE OF THE SECRETARY WASHINGTON DECLASSIFIED February 15, 1946 E.O. 12065, Sec. 3-402 p.m. State Dept. Guidelines, March 6, 1982 By DEB NLT, Date 6/13/85 TOP SEGRES SUMMARY OF TELEGRAMS AUSTRIA The British Foreign Office has submitted to the American and French missions in London memoranda designed to establish a formula for the treatment of German assets in Austria. The formula would then be submitted to the Soviet Government. The British memorandum after outlining background on this case proposes that it be agreed that measures already taken against German assets in Austria constitute full satisfaction with respect to reparation on German foreign assets in Austria. It would also be agreed that further removals as reparation from Austria would be discontinued but that the Austrian Government would be required to undertake an examination into the title of ownership of all German assets remaining in that country and to take such action thereon as might be required. ITALY General Morgan during his political meeting on February 14 announced his decision that military maintenance would be transferred from Trieste to Venice as of April 1. He denied that serious repercussions might arise from this decision. The American and British political representatives protested strongly against this decision and stated previous objection thereto on the part of the Department of State and the British Foreign Office. Morgan refused to alter his decision or to submit the matter to the Combined Chiefs of Staff for prior considera- tion. Kirk recommends an approach to the Combined Chiefs in order to obtain a reversal of SAC's decision. The British representative is making a similar recommendation to the Foreign Office. During the February 12 meeting of the Deputies on the Council of Foreign Ministers Dunn suggested that the Italian Government be permitted to submit further information with respect to the treaty as a whole in addition to that already submitted on Venezia Giulia and the Tyrol. The British representative agreed but Gusev asked for deferral of a decision. During subsequent meeting naval limitation was discussed generally pending study by experts. Gusev, however, took occasion to reiterate the Soviet argument that there should be no control body to inspect in view of Italy's status as cobelligerent and the pledge to support Italy's admission into UNO. JAPAN mop GEORET