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THITARY DEPARTMENT OF THE ARMY OFFICE OF THE UNDER SECRETARY WASHINGTON, D. C. STATES OF 26 October 1949 E.O. 000 He 3-24.23 MEMORANDUM FOR THE SECRETARY OF DEFENSE Subject: Austrian treaty negotiations. 1. This supplements my memorandum of 20 October 1949, which I understand that you forwarded to the President. This should, I believe, be amplified by the following information: NSC 38/1 -- referred to in my memorandum -- includes a letter from you to the Secretary of State, dated 14 June 1949, containing the following paragraphe, -- "In view of the above consideration, the Joint Chiefs of Staff believe it highly important that the withdrawal of occupation forces not be completed until such time as Austria has in being armed forces reasonably adequate for its security. It is recognized that the mothod which is adopted to insure timely provision of the necessary Austrian armed forces can only be arrived at during the treaty negotiations. In this connection, it is recommended that provision be embodied in the treaty for a step-by-step reduction of occupation forces in consonance with the ability of the Austrian Government to organize, train, and equip its forces for internal security and to assume rasponsibilities in accordance with the phasing. AND "Regardless of the method employed, the National Mili- 6. tary Establishment considers that the peace treaty for Austria should become effective only after the United States ie assurod that Austrian armed forces are reasonably adequate to perform all tasks envisaged in the treaty. 2. Following this, the NSC initiated a study by its Staff to cover this point and also various other aspects of the Austrian treaty. This study has not been completed. 3. It is apparently froe from dispute, and I am informed that State Department agrees, that the United States should insure, before the