their economy by the Soviet exploiters, the Austrian people have courageously and skillfully rebuilt the economy which was left to them. They have never succumbed to the temptation to accept a treaty which gave them less than genuine freedom and independence. This record enables one confidently to place faith in the resolution of the Austrian people to preserve their freedom and independence for the future.

The Soviet Foreign Minister proposed in Vienna a four-power undertaking to respect and observe Austria's intended declaration of neutrality. I stated that the United States would have no objection in principle to expressing an intention to respect Austria's neutrality, as I had already said at Berlin in February 1954. Such respect is indeed enjoined upon us by the United Nations Charter. For example, article 2 (4) of the charter requires all members to refrain in their international relations from the threat or use of force against the territorial integrity or political independence of any state. However, I said that any final formulation of our position in this regard would have to be deferred pending action by the Austrian Parliament, at which time it will be possible to consider the form and content of the declaration.

The Soviet-Austrian agreement of April 15, 1955, referred to above, specifies a desire on the part of Austria for a guaranty by the Governments of the United States, the United Kingdom, France, and the Soviet Union of the inviolability and integrity of Austria's territory. This desire on the part of the Austrian Government is understandable, but the Government of the United States has made no commitment with respect thereto. It should, moreover, be clearly understood that none of the signatory powers to the treaty conditioned the conclusion of the Austrian Treaty or the implementation thereof on a guaranty of Austria's territorial integrity.

The Senate of the United States would be fully informed and consulted with respect to any further developments in this connection.

VI

You will recall, Mr. President, that in your address before the American Society of Newspaper Editors on April 16, 1953,1 you referred to the efforts made by the Government of the United States to speed conclusion of the Austrian Treaty and cited Soviet signature of the Austrian Treaty as one example of how the Soviet Government could attest by deeds the sincerity of its claimed peaceful purposes. The Austrian Treaty having now at last been signed, I cannot fail to express the hope that this is but the beginning and that the Soviet Government will, in other directions, join in making a real effort to find acceptable solutions for the many problems still requiring attention.

VII

I recommend, Mr. President, that you request early consideration by the Senate of this matter with a view to obtaining the advice and

consent of the Senate to the ratification of the Austrian State Treaty. Such action is, in my opinion, in the best interests of this Government. Respectfully submitted,

JOHN FOSTER DULLES.

26. REPORT OF THE SENATE COMMITTEE ON FOREIGN RELATIONS, JUNE 15, 19551

The Committee on Foreign Relations, having had under consideration the Austrian State Treaty, signed at Vienna on May 15, 1955 (Ex. G, 84th Cong., 1st sess.), unanimously reports the treaty to the Senate and recommends that it give its advice and consent to ratification thereof.

1. MAIN PURPOSE OF TREATY

The pending treaty, to which Austria, France, the Soviet Union, the United Kingdom, and the United States are parties, reestablishes Austria as a sovereign, independent, democratic state, thus redeeming the pledge of the Moscow Declaration of 1943 that Austria should be made free and independent. The treaty, among other things, prohibits any future political or economic union between Austria and Germany; fixes the frontiers of Austria as those existing prior to the Anschluss of 1938; limits certain types of weapons which Austria is not to construct or possess; provides for the withdrawal of the forces of the Allied Powers within 90 days after the treaty comes into force; prescribes the disposition of German assets in Austria; renounces certain claims by Austria on Germany and on the Allied and Associated Powers; provides for restoration of legal rights and interests of the United Nations and their nationals; and makes temporary provisions relating to the economic relations of Austria with other nations.

2. COMMITTEE ACTION

The Austrian State Treaty was signed at Vienna, May 15, 1955, and transmitted to the Senate on June 1, 1955. The Committee on Foreign Relations has followed the long tortuous negotiations over the years through the reports of the Secretaries of State on the progress or lack of progress made at Foreign Ministers' meetings on the treaty; When Soviet obstructionism finally virtually ceased this spring, and it appeared likely that agreement on a treaty on the basis of the Austria-Soviet Union memorandum of April 15, 1955, could be obtained, the Honorable Livingston T. Merchant, Assistant Secretary of State for European Affairs, discussed the draft treaty with the Consultative Subcommittee on European Affairs on May 3, 1955.

Inasmuch as the committee was generally familiar with the problems and provisions of the treaty, and these negotiations have drawn out

1 S. Exec. Rept. No. 8, 84th Cong., 1st sess.

2 Senators John J. Sparkman, Hubert Humphrey, Michael J. Mansfield, Alexander Wiley, H. Alexander Smith, and William F. Langer.

over 8 years, the committee held a public hearing on June 10,1 at which Secretary of State Dulles testified and, after discussion in executive session on June 14, voted unanimously to report the treaty to the Senate for favorable action.

The committee was informed that Austria has already ratified the treaty and there have been unofficial reports that the Soviet Union has done likewise. The United Kingdom and France are expected to act during the summer.2 Action by the United States during this session of Congress will enable Austria to regain her independence before the end of the year.

3. BACKGROUND INFORMATION ON AUSTRIA

(a) Description

Austria is a mountainous country, of about 32,300 square miles, comparable to the size of Maine or South Carolina. It is bounded by Germany and Czechoslovakia to the north, Hungary to the east, Yugoslavia and Italy to the south, and Switzerland to the west. About half of Austria's 1,648-mile frontier is with Communistcontrolled areas. Austria, therefore, forms a salient into Eastern Europe.

Austria's population of 7 million is 95.3 percent German-speaking and 89 percent Catholic. The capital city of Vienna, with its 1,700,000 inhabitants, accounts for more than one-fourth of the population. Austria is primarily an industrial nation, with agriculture employing only about one-third of the population. Metallurgy, textiles, engineering, and wood are the major industries. Among important natural resources are iron ore, coal, copper, lead, zinc, bauxite, graphite, sulfur, manganese, and petroleum.

(b) History

The Austro-Hungarian Empire, which encompassed Austria, Hungary, and portions of Czechoslovakia, Poland, Rumania, Yugoslavia, and Italy, was dismembered in 1918 at the end of World War I. Austria became a Republic at that time and its boundaries were set by the Treaty of St. Germain.3

Austrian independence came to an end on March 13, 1938, when Nazi troops moved in and Hitler proclaimed its union with Germany in the so-called Anschluss. The Anschluss was never recognized by the United States, which took care to avoid any steps that might be considered as constituting de jure recognition of the annexation. (c) Wartime agreements

As a part of Germany, Austria was plunged into World War II. Austria did not declare war against any of the United Nations nor

1 The Austrian State Treaty: Hearings before the Committee on Foreign Relations, United States Senate, 84th Cong., 1st sess.

? Austria deposited its instrument of ratification June 14, 1955; the U. S. S. R. July 5, 1955; the United Kingdom, July 19, 1955; and France, July 27, 1955.

Treaty of Sept. 10, 1949; Treaties, Conventions, International Acts, Protocols, and Agreements Between the United States of America and Other Powers, 19101923, vol. III (Washington, 1923); pp. 3149 ff.

7

did of them declare war on Austria. Austria's status as a victim any of Nazi aggression was emphasized by the United Kingdom, U. S. S. R., and United States declaration on Austria, made at Moscow on November 1, 1943, which reads as follows:

DECLARATION on Austria, November 1, 1943, at Moscow

The Governments of the United Kingdom, the Soviet Union and the United States of America are agreed that Austria, the first free country to fall a victim to Hitlerite aggression, shall be liberated from German domination.

They regard the annexation imposed upon Austria by Germany on March 15th 1938, as null and void. They consider themselves as in no way bound by any changes effected in Austria since that date. They declare that they wish to see reestablished a free and independent Austria, and thereby to open the way for the Austrian people themselves, as well as those neighboring states which will be faced with similar problems, to find that political and economic security which is the only basis for lasting peace.

Austria is reminded, however, that she has a responsibility which she cannot evade for participation in the war on the side of Hitlerite Germany, and that in the final settlement account will inevitably be taken of her own contribution to her liberation.

At Potsdam in 1945 the Soviet Union, the United Kingdom, and the United States agreed that "reparations should not be exacted from Austria." France associated herself with both of these declarations. (d) Occupation

In May 1945 Allied troops occupied Austria in four zones and her prore-1938 boundaries were restored. Dr. Karl Renner set up visional government, which was given a popular mandate in the elections of November 1945. The occupation powers recognized this Government, headed by Dr. Renner as President and Leopold Figl as Chancellor, on January 7, 1946. This act did not affect the occupation, which had been set up by agreements of July 9, 1945. Although the objectives of the occupation-demilitarization, denazification, restitution of allied property, return of allied prisoners of war, care of displaced persons, and punishment of war criminals--were achieved shortly, failure of the occupation powers to agree on the terms for an Austrian Treaty resulted in the continuation of the occupation.

(e) Political developments

Austria has had a coalition government since the first national elections of 1945. The coalition is formed by the People's Party and the Socialist Party, the two major political parties in Austria. Both have been thoroughly anti-Communist and devoted to democratic principles. This coalition was maintained in power at national elections in 1949 and 1953. At present, the coalition controls 147 seats out of 165 in the Austrian Parliament. Communist Party strength in Austria is negligible. In the 3 postwar elections, the Communists received between 5 and 5% percent of the total vote and from 4 to 5 seats in the Parliament.

1 Section VII of the Protocol of Proceedings of the Berlin Conference; A Decade of American Foreign Policy, p. 42.

2 Ibid., p. 614.

3 Ibid., pp. 610-613.

Whether the coalition will continue after Austrian independence is a matter of conjecture. The important thing to note is that Austria has basically a two-party system with both parties in the western tradition. Communist Party efforts to exert influence in Austrian politics will undoubtedly increase after the restoration of independence but since Austria has endured a Soviet occupation it can be expected that these efforts will not be successful.

4. SOVIET OBSTRUCTIVE TACTICS ON TREATY

The history of the Austrian Treaty negotiations is a study of frustrations in dealing with the Soviet Union. The United States took the lead in 1946 to have the treaty included on the agenda of the Foreign Ministers' meetings. After much temporizing by the Soviet Union, the treaty was finally placed on the agenda only to meet with more delaying tactics. In attempts to clarify Soviet demands, the deputies of the Foreign Ministers, a special treaty commission, and intermittently the Council of Foreign Ministers itself, wrestled with the issue from 1947 to 1954. In all, the treaty had been discussed at 379 separate sessions of these bodies by the end of 1954.

At first, the Soviet Union maintained that it was not ready to discuss the treaty. Then it maintained that Austria was not ready for independence. After those excuses became implausible, irrelevant side issues (the status of Trieste, the so-called "dried pea debt," and the alleged resurgence of nazism and militarism) were posed and had to be disposed of. A few times it seemed that apparent agreement had been reached or would be reached shortly, only to have these hopes dashed subsequently. In efforts to break this stalemate, the United States proposed a short simple treaty in place of the complex sixty-odd-article draft on which the Soviet Union kept shifting ground. The United Nations General Assembly in 1952 by a vote of 48-0 (Soviet bloc abstaining) called upon the occupation powers to make a renewed and urgent effort to terminate the occupation and restore Austrian independence. Neither effort caused the Soviet Union to change its position.

Regarding the treaty provisions themselves, the greatest controversy centered around so-called "German assets" in Austria (in particular oil fields and refineries, the Danube Shipping Co., and some 300 business and industrial enterprises), and the withdrawal of Allied troops. These, and other issues are more fully discussed elsewhere in this report.

In 1955, Soviet policy underwent a sudden change. On March 25, 1955, Austrian Chancellor Raab was invited to Moscow to discuss the areas of disagreement. On May 15, the treaty was signed by the four occupation powers and Austria. In the space of 7 weeks, between the Soviet invitation and the signing, every obstacle thrown up during the previous 7 years was withdrawn or compromised by the Soviet Union, and a treaty acceptable to the Western Powers and Austria was signed.

1 For annotation of the developments mentioned in this section of the Senate Committee's report, see section II of the report by the Secretary of State; supra, pp 676-679.