Telegram from Walter Bedell Smith to the Department of State

INCOMING TELEGRAM Return to President which DEPARTMENT OF STATEC-SDINISION OF COMMUNICATIONS AND RECORDS TELEGRAPH BRANCH E. O. 11652, Sec. 3(E) and 5(D) or (E) Dept. of State letter, Aug. 9, 1973 X By NLT. He , NARS Date 7.19.) 20P BECRET 72 A Action: S/S Control 6725 Rec'd April 22, 1947 6:28 p.m. FROM: Moscow TO: Secretary of State NO: 1511, April 22, 10 p.m. URGENT DELSEC 1458 PERSONAL EYES ONLY FOR ACHESON FROM MARSHALL Please deliver the following message to only the President: "My Dear Mr. President: Midway in yesterday's Monday afternoon meeting at my suggestion, we went into closed session and on my insistence took up the discussion of our fundamental differences over the Austrian treaty, (A) no change in Austrian boundary in favor of Yugoslavia, (B) no reparations from Austria to Yugoslavia in accordance with Potsdam Agreement, and (c) German assets in Austria. Molotov showed some indication of reconsidering Soviet position on (A) and (B), but no change on (c). This morning we went again into closed session without profitable discussion, Molotov stating that the Soviet delegation was not ready to discuss (A) and (B). Bevin and he had a prolonged and futile debate over (c), in which I declined to participate as it was meroly time consuming. Molotov had suggested possibility of agrseing to amend- ments of original Soviet proposal on these assets, but declined to submit any amendment. Soviet position since London had remained unchanged while Bevin and I had each submitted proposals amonding our original proposals in en effort to secure Soviet coneurrenos. I s SERVICER stated that sor OECKET 6.6. and INFORMATION COPY