WEEKLY SUMMARY - SOVIET UNION: AUSTRIAN TREATY

Created: 12/29/1948

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WEEKLYx SUMMARY

32

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Apr 77

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EASTERN EUROPE

SOVIET UNION

Austrian Treaty Soviet willingness to rosume four-power discussions on the Austrian peace treaty may be accompaniedore conciliatory attitude In an attempt to achieve an early settlement. Prospectsoviet compromise an tho major points ofwhich were not resolvad during the last conference. The USSR may ostensibly champion the Yugoslav people by initially supporting Yugoslav territorial claims, la order to strengthen the Soviet bargaining position with the West.of the Tito-Stalin rift, however, It Is unlikely that the USSR will wish to break off negotiations over this Issue. Moreover, the Kremlin may now considerAustria could serveridge over which needed western materials and machinery could flow bo the USSR;espite the calculated risk of quadripartite withdrawal, an "unoccupied" Austria may be more susceptible toInfiltration, These considerations may Impel the USSR toore reasonable approach to the thorny question of external German assets In regard to both the lump sum to be paid by Austria to the USSR for restoration of German external assets anc" the amount and type of properties to be turned over to the USSR. The achievementeasonable compromise would vino strengthen Soviet propaganda claims that the USSR Is leading the world effort to further peace. Consequently, as long as the Kremlin considers It possible to reach an Austrian settlement, the USSR is unlikely to Initiate strong measures which would disrupt the present quadripartite administration.

Original document.

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