Memorandum, State Department Summary of Telegrams

DECLASSIFIED E.O. 12065, Sec. 3-402 DEPARTMENT OF STATE State Dept. Guideline, June 12, 1979 OFFICE OF THE SECRETARY By NLT- He NARS, Date 11-30-to WASHINGTON June 20, 1949 SUMMARY OF TELEGRAMS AUSTRIAN TREATY In commenting on the fears expressed by the JCS over the conclusion of an Austrian treaty prior to the formation of adequate Austrian security forces, the Secretary points out that only the main treaty issues are being handled at the present CFM and that, even if the deputies of the Foreign Ministers are successful in completing a draft treaty, this would not be signed before September or October, after which the process of ratification would require about six months. The period of ninety days within which the occupation forces must be withdrawn would start to run only from the date of the entry into force of the treaty after exchange of ratifications. The Secre- tary also points out that if the creation of adequate Austrian forces is delayed the ratification of the treaty could be postponed in order to prevent the creation of a military vacuum such as is feared by the JCS. The Secretary believes that, as soon as the military clauses of the treaty are accepted by the Soviets, four power agreement to the formation of an Austrian army should be sought and suggests that, if the Soviets refuse to agree, consideration should then be given to the possibility of going ahead in the western zones with the necessary mili- tary organization. The Secretary does not think that, if the main issues of the treaty are settled at the CFM, further action need be taken for the present on the limitation of occupation forces. MILITARY AID Our representatives in London state that they believe PROGRAM it highly desirable to obtain a substantial appropri- ation for dollar support of increased European military production. They point out that unless a large dollar sum is available we will lose the flexibility necessary to work out a maximum production program consistent with no substantial impact on ERP and will not be able to take advantage of a change for the better in the European economic situation. They say, however, that there is no substantial slack pro- duction capacity in the Western Union countries and that the budgetary expenditures already accepted by these countries for the coming year are as near safe limits as present estimates can go. PALESTINE In a meeting with the Under Secretary on Friday Israeli representatives here and at the UN reiterated their usual arguments on the refugee question and a territorial settlement; in reply the Under Secretary said that it is necessary for the parties to the Palestine dispute to subordinate their particular desires to the overall necessity for a genuine peace and stated his fear that the desire for such a peace is not yet strong enough in the Israeli government. We reiterated our views on the territorial and refugee questions and made