Telegram from Walter Bedell Smith to the Department of State

INCOMING TELEGRAM grt DEPARTMENT OF STATE-DIVISION - OF COMMUNICATIONS AND RECORDS TELEGRAPH BRANCH BECLASSIFIED E. O. 11652,- Sec. 3(E) and S(D) or (E) Dept. of State letter, Aug. 9, 1973 By NLT- HC NARS Date 7.14.7, A 7-N Action: EOR Control 7615 Info: s/s Rec'd April 25, 1947 UE 12:45 a.m. A-H LE ESP FROM: Moscow DC/R LOG TO: Secrotary of State NOg 1545, April 24, 8 p.M. ORGENT DELSEC 1470 FOR the PRESIDENT, VANDENBERG, CONNALLY AND ACHESON FROM MARSHALL Second, third and fourth informal restricted CFM meetings on April 21 and 22 continued in closed ses- sion diacussion of the Austrian treaty. Marshall stated that the issue of German assets in Austria affected so many other articles in the troaty that, unless they could reach a decision on that issue, (Article 35) it was obvious that they could not settle many other points in the treaty. Molotov agreed to this thesis but said that the Soviet Government could not agree to reduce to naught the reparations which it was to receive from Germany. He continued that the Soviots vere only claiming what was German assets under the Potsdam Agreement and if that agreement harmed the interest of someone else not party to Potsdam, these interests should not be protected at the expense of the Soviet Union. Molotov suggested possibility of agreeing to amend= ments of original Soviet proposal on assets, but declined to submit any amendments. As to the Austrian boundary of Yugoslavia and ropara- tions from Austria to Yugoslavia in accordance with Potsdam, Molotov said he was still not ready for further discussions ARCHIVES AND RECORDS INFORMATION COPY : SERVICE