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Memorandum of Conversation with Secretary of State Dean Acheson, Ernest Bevin, Robert Schuman, Sir Oliver Franks, Henri Bonnet, Sir Roger Makins, and Others

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6 DECLASSIFIED E. O. 11652, Sec. 3(E) and 5(D) or (E) Dept. of State letter, AIR-3-7375 DEPARTMENT OF STATE By NLT- He : NARS Date 4.22.76 258 -a MEMORANDUM OF CONVERSATION September 15, 1949 SUBJECT: Tripartite Position on Austrian Treaty PARTICIPANTS: Mr. Bevin Sir Roger Makins 5. Ambassador Franks Mr. Schumann ARCHIVES 'NATIONAL RECORDS SERVICE" AND Ambassador Bonnet Mr. Acheson Ambassador Jessup Ambassador Murphy Mr. Williamson Mr. Reber Col. Byroade Mr. Satterthwaite COPIES TO: S/S, G, S/P S/A, BA, EUR, E ITP, OFD, TRC, S/BFA London, Paris, Moseow, Vienna, Frankfurt Austria I said we might take up Austria first on the items of the Agenda as it was the most troublesome. I asked Williamson to explain from charts the economic position of Austria. These charts clearly demonstrate. we think, that if we yield any on our position with the Soviets, Austria could not have a self-supporting economy Reber said the principal difficulties which have prevented the carrying out of the Paris agreements have arisen in connection with oil rights shipping, and an ade- quate supply of rolling stock. The Soviets claim 60% of the area of the ofl exploration lands but this 60% in- cludes nearly all the lands which hold any promise of future development. We are in a dispute with the Soviets also over refineries, over the capacity of several of the plants, and over which ones they should get. The Soviets are allotted 420,000 tons capacity. They claim our esti mates of capacity are too high but we think that their estimates are too low. So if the Soviet's claims are met, Austria would have to be an importer of some 30,000 tons a year, with the resultant drain on her economy a The Soviets claim the two most modern refineries and the Lobau pipe line which runs from the producing areas to Vienna. We claim that the pipe line is not a part of the refinery, and should become a common carrier under Austrian control. With POP