Memorandum, State Department Summary of Telegrams

DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON September 7, 1948 SUMMARY OF TELEGRAMS AUSTRIA We are requesting the British and French views as to the advisability of proposing that negotiations on an Austrian treaty be resumed. While no new proposals have been received which would justify this move, we feel that the issue of an Austrian treaty should be kept alive both for internal Austrian political reasons and in order to avoid a Soviet squeeze on Austria. We consider that the Yugoslav difficulties with the Cominform may have created a situation which could be used to advantage in settling some issues. Austrian Foreign Minister Gruber has already informed our Legation in Vienna that he will not proceed with bilateral negotiations with the Soviets so long as there is reasonable prospect that quadri- partite negotiations may be resumed in the near future. GERMANY Ambassador Murphy feels that the recent formation by pro- Soviet political elements of the so-called "democratic bloc for Berlin" is disturbing in that it indicates the USSR does not intend to relax efforts to attain domination of Berlin, whatever may be the outcome of the present four power negotiations. This bloc could readily become the nucleus of a new government which might take over the city at an opportune moment. Meanwhile Murphy feels that the west- ern powers lost considerable prestige over the demonstrations which took place yesterday in connection with the meeting of the Berlin city assembly. EGYPT Ambassador Griffis reports that the violent anti-American sentiment in Egypt resulting from our Palestine policy appears to be lessening and there is now considerable prospect that relations between the US and Egypt can be improved. However, he considers it essential to this end that we make every possible effort to assist the Arab refugees in the Middle East. Meanwhile we are informing the British of our serious concern over this refugee problem and of our DECLASSIFIED T a E.O. 12065, Sec. 3-402 State Dept. Guiceline, June 12, 1979 By NLT- HC NARS, Date 11-13-to