Document Type: 
Document Number (FOIA) /ESDN (CREST): 
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Original Classification: 
Document Page Count: 
Document Creation Date: 
December 20, 2016
Document Release Date: 
December 14, 2000
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Case Number: 
Publication Date: 
May 2, 1949
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PDF icon CIA-RDP78-01617A006000010052-4.pdf151.69 KB
r , 2 MA`t lgikq Approved For Release 22X7/02/0 C ClARDP78-01617AO06000010052-4 R State Dept. declassification & release instructions on file $ 3'a i. ~is.t "Prospects for Austrian treaty talks--The Department of "7- has i brgned t.1S representative Reber at the Austrian r.,reaty talks that it does not desire to discuss the problem of Austria at any forthcoming CF If,, meeting until substantial agreement is reached on German issues. The Department does not wish to link the Austrian treaty to a possible dead- lock on Germany, thus prejudicing future Austrian talks, anti uiderstands that the British and French concur in this ap- proach. The Department desires that discussions of the ustrian treaty be continued in order to clarify secondary issues and to ascertain Soviet intentions, that a recess be obtained shortly before a CFM meeting, and that negotiations be resumed : inmultaneously with the CFM meeting. Austrian Foreign Minister Gruber has expressed the hope to US Minister Erhardt in Vienna that, if no agreement is reached on Austria either at a CFM meeting or during the the western powers will make a sweeping pro- London talks, ?posal advocating that occupation of Austria be terminated within six months or a year and that, in the meantime, occupa - tion controls be relaxed and the Austrian army be built up. rtdrhardt agrees substantially with Gruber, despite the fact that Gruber's ;proposal would take western forces out of ustria while the USSR retained German assets in Austria CIA- 5 e/sa -3 -:and the frontier issue remained unsettled. THE C.I.A. HAS N CE .J ^T_ ON TO HE DECLAS 1 'ICATION OF THIS DOCUMENT., VAR -1 'AST NO. Q~.~ 2. CHINA: Communists seek trade with japan--US Consul General Clubb Peiping rieportst a.t a Chinese Coxmmu- S s W=aists have solicited the help of a private US firm in proutoti trade between North China and Japan on a barter basis. The arm's representative has asked whether the State Department Approved For Release 2~%W- P78-01617A006000010052-4 o 1 Approved For Release 2007/0 OFT-01617A006000010052-4 and SCAP would approve in principle of such trade. Clubb requests authorization to inform the Communists, when they Inquire about such trade, that the US would be ready to give sympathetic consideration to its facilitation provided US consular establishments in. Communist-controlled areas were permitted to function normally,. Clubb transmits his firm belief that such an opportunity to insert an opening wedge between Communist China and the USSR, should be promptly and fully exploited. Shama near a csiomic collapse--US Consul General Cabot in Shanghai ?epo ?ts that Shanghai faces catastrophic conditions. According to Cabot, public confidence It the Nationalist currency has practically vanished, employers arr3 unable to meet their pa rolls, and foreign businessmen fear that conditions will become so bad that the people of Shangh?.i will welcome the arrival of the Communists. Cabot considers it essential that the US continue the present ECA program for Shanghai because its curtailment at this time would lead to such serious food and supply shortages that economic collapse would be complete. Cabot believes, however, that ECA stoc in Shanghai should be kept at prudently low levels? r.. Approved For Release 2007/02~P - W 01617A006000010052-4