PROGRESS REPORT ON NSC 164/1 (AUSTRIA)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01731R003000110001-0
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 18
• Document Creation Date: December 16, 2016
• Document Release Date: March 16, 2005
• Sequence Number: 1
• Publication Date: September 15, 1954
• Content Type: REPORT

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COPY NO.
OPERATIONS COORDINATING BOARD
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ashington, D.C.
PROGRESS PORT 01f NSC 164/1 (AUSTRIA)
'REFERENCE; t:SC Action No, 932
OCB FILE NO. 2
NSC revlw
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This document contains information affecting the national defense of the
United States, within the meaning of the espionage laws, Title i8, Sec-
tions 793 and 794, i1. S. C., the transmission or revelations of which in
any manner to an unauthorized person is prohibited by law.
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TQP S CRET
OPERATIONS COORDINATING BOARD
Washington 25, D. C.
December 29, 1954
NENDRANDUM FOR THE OPERATIONS COORDINATING BOARD
SUBJECT: Progress Report on NSC 164/1 (Austria)
Attached is the second Progress Report on the implementation
of NSC 164/1, covering the period from January 20, 1954 through
August 24, 1954, as approved by the Operations Coordinating Board
on September 15, 1954.
The previous draft of this report dated September 3, 1954 is
obsolete and may be destroyed in accordance with the security
regulations of your agency.
Elmer B. Sta. as
Executive Of i r
OCB Executive Officer Memo to
Mr. Lay, NSC, dated 9/17/54,
subject as above, with attach-
ment as listed.
Downgraded to CONFIDENTIAL
OCB File No. 22 when removed from attach- TOP: SECRET
ments.
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 TOP SECRET
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OPERATIONS COORDINATING BOARD
Washington 25, D. C.
MEMORANDUM FOR: Mr. James S. Lay, Jr.
Executive Secretary
National Security Council
September 17, 1954
SUBJECT: Progress Report on NSC 164/1 (Austria).
REFERENCE: Memorandum for the Executive Secretary, NSC, dated
October 14, 1953.
On October 14, 1953 the 'President approved NSC 164/1, "U. S.
Objectives and Policies with :Respect to Austria," and designated
the Operations Coordinating Board as the coordinating agency.
Attached hereto is the second progress report on the implementa-
tion of NSC 164/1, covering the period from January 20, 1954 through
August 24, 1954. The report was approved by the Operations Coordinating
Board on September 15, 1954.
The Board wishes to bring to the attention of the National
Security Council two official U. S. actions since August 24. Twenty-
five thousand metric tons of feed corn were given the Austrian
Government as a "gift from the American people" for distribution to
needy farmers in the areas stricken by the recent Danubian floods.
In addition, the U. S. released 800 million Austrian schillings in
counterpart funds for flood relief.
:to-r j ) /
liner B. Staats
Progress Report on NSC 164/1,
dated September 15, 1954.
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September 15, 1954
PROGRESS REPORT ON NSC 16
S.OBJECTI~~AND POLNIW WITH RESPECT TO AUSTRIA
(Policy approved by the President,,. October 114, 1953)
A. SUMMARY OF MAJOR ACTIONS
1. A Western offer at the Berlin Conference in February to sign
an Austrian treaty including the Soviet versions of the unagreed
Articles was not accepted by the Soviets and was subsequently with
drawn, The western powers and Austria rejected Soviet proposals to
eondlucsa treaty providing for (1) retention of occupation forces in
the zones; (2) withdrawal of occupation forces from Vienna, and
(3) Austria's neutralization,
2. Following coordination with the West, Austria proposed on
July 22,'a five power committee in Vienna to consider alleviation
of occupation burdens. The Western Governments accepted this Austrian
proposal but it was rejected by the Soviet Government which proposed
instead the resumption of treaty negotiations based presumably on
their Berlin proposals.
3,' In unilateral efforts to alleviate Austria's burdens, the
U.S.'has (1) turned over to Austrian control the Linz and Salzburg
stations of our radio network; (2) agreed in principle to an increase
in the transportation rates paid by us in Austria; and (3) i>btained.-i
Congressional appropriation- of 01,000,000 for'the_ cofistk.-uction of
dependents' housing in Vienna. In addition#.emergency assistance- has
been.provided*to rglieye the eituation_cauaed by the July floods.
.. Soviet threats against the Austrian Government in May were
countered by airing the matter in the Allied Council on U.S. initia-
tive. Except for the reestablishment of Soviet zonal border checks
on two occasions, and occasional stoppage of German tourists in the
Soviet zone, Soviet threats have not been carried out.
5i As a further step toward meeting its obligations for trade
liberalization under the OEEC code, in June 1954 Austria raised the
level of imports from the EP'U area which are not subject to quanti-
tative restrictions from 50% to 75%.
6, On U.S. initiative tripartite agreement has been reached on
proposals for planning for the emergency utilization of Austrian
manpower. We are awaiting Austrian reaction to these proposals.'
(For detailed development of NSC courses of action, see ANNEI "h" )
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B. OPERATIONAL CONSIDMATIONS BEARING ON POLICY
7, In the opinion of the Working Group on Austria,. NSC 164/1
remains effective, timely and capable of continuing implementation..
C, EMERGING PROBLEMS AND FUTURE ACTIONS
8, Study is being given to the likelihood that we may be faced
in the near future with the problem of modifying our position on the
Austrintr treaty negotiations.- The Austrians are expected to be
increasingly resentful of any refusal to negotiate and British and,
French eappnrt of the Austrian position is anticipated. This study
will give consideration to the possibility of renewed negotiations
on the basis of the Soviet Berlin proposals which would, p
be the only basis upon which negotiations could be reopened. The
deterioration maintained and all
U,S.-Berlin position will, the
quo.
efforts will be made to prevent a
9., Tripartite consideration, in consultation with the Austrians,
is being given to inscribing the Austrian item on the UNGA agenda
this fall and to submitting to the UNGA a tripartite report on
Western efforts to conclude an Austrian treaty in response to UNGA
Resolution of December 1952. Aside from its propaganda value it
is hoped that this Soviet Lovertur overtures strengthen renew Austrian ations-
ness toresist possible
or to engage in bilateral negotiations.
10, The Working Group on Austria believes that it would be
preferable to leave until after the event as little as possible of
the planning necessary to cope with the sort of situations envisaged
in paragraphs 17f and h ef' the Courses of Action. It has,
fore, agreed upon tie stuffy described in paragraphs 17f, $ and h
infra. It remains a question as to how much useful advanced planning;
is possible, but it is believed worthwhile to examine the specific
situations that might arise and at least to attempt to plan tot meet
them. The decision to undertake this study does not imply
Working Group foresees any early Soviet action to partition Austria,
blockade Vienna, or make illegal use of armed force. Such actions,
however., are apossible and the Soviet
represented initial stepsotowardlpartition.
17a (5) infra could
11. Notwithstanding the ;progress that has been made in building
up the Austrian gendarmerie, the problem of the defense of Austria
oof the f the U.S. posi-
against full-scale Soviet attack, the maintenance
tion in this area, and the protection and support p southe-ra
flank of NATO is a matter of continuing concern, The long-awaited
settlement of the Trieste situation and the development of
fttheubalkfr
Pact, consistent with .and NO n butluntil~this el planning is more
stantially to easing this cgence ?,.,y or
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