try.

ed

tria

-5-

of the joint program for European recovery assets,

and earnings therefrom, which belong to nationals

of Austria and which are situated within the United

States of America, its territories or possessions.

Nothing in this clause imposes any obligation on the

Government of the United States of America to assist

in carrying out such measures or on the Government

of Austria to dispose of such assets.

be To promote the development of industrial and
agricultural production on a sound economic basis; to
achieve such production targets as may be established
through the Organization for European Economic Cooperation;
and when desired by the Government of the United States of
America to communicate to that Government detailed proposals
for specific projects contemplated by the Government of
Austria to be undertaken in substantial part with assistance
made available pursuant to this Agreement, including when-
ever practicable projects for increased production of food.

ce. To stabilize its currency, establish or maintain
a@ valid rate of exchange, balance its governmental budget
as soon as practicable, create or maintain internal finan-
cial stability, and generally restore or maintain confidence
in its monetary systen.

ad. To cooperate with other participating countries in
facilitating and stimlating an increasing interchange of
goods and services among the participating countries and
with other countries and in reducing public and private

barriers to trade among themselves and with other countries.

2. Taking


,@

e,

an

Sovernuent in dealing with ita currency problems in

rolution to the requiresients of Article IV of the

arreemert.

Accept, Sir, the renewed assurances of my highest

consiccration.

e4e
WCOckey: jm

John G.

Erhardt


it

3. The Government of the United States of America will
from time to time notify the Government of Austria of its re-
quirements for administrative expenditures in schillings within
Austria incident to operations under the Economic Cooperation
Act of 1948, and the Government of Austria will thereupon make
such sums available out of any balances in the special account
in the manner requested by the Government of the United States
of America in the notification.

4. Five per cent of each deposit made pursuant to this
Article in respect of assistence furnished under authority of
the Foreign Aid Appropriation Act, 1949, shall be allocated to
the use of the Government of the United States of America for its
expenditures in Austria, and sums made available pursuant to
paragraph 3 of this Article shall first be charged to the amounts
allocated under this paragraph.

5. The Government of Austria will further make such sums
of schillings available out of any balances in the special
account as may be required to cover costs (including port,
storage, handling and similar charges) of transportation from
any point of entry in Austria to the consignee's designated point

of delivery in Austria of such relief supplies and packages as

“ are referred to in Article Vv.

6. The Government of Austria may draw upon any remaining
balance in the special account, for such purposes as may be agreed
from time to time with the Government of the United States of
America. In considering proposals put forward by the Government
of Austria for drawings from the special account, the Government
of the United States of America will take into account the need
for promoting or maintaining internal monetary and financial

stabilization


lusten durch Kriegsereignisse, dann erklart die ésterreichische
Bundesregierung, dafiir Sorge tragen zu wollen, dass im Falle
eines kiinftigen Kriegsschadens dic Staatsangehérigen der
Vereinigten Staaten von Amerika, denen derartige Garantien
gegeben wurden, im Rahmen eines etwaigen Wiedergut-
machungsgesetzes fiir Kriegsschaden oder andere Massnahmen
nicht ungiinstiger behandelt werden als dsterreichische Staats-
biirger oder Staatsbiirger dritter Lander. Die dsterreichische
Bundesregierung erklart ferner, dass sie, wenn die Regierung
der Vereinigten Staaten von Amerika im Rabmen einer
Garantie fiir den Fall von Kriegsverlusten an einen Staats-
biirger der Vereinigten Staaten eine Zablung in US-Dollar
leistet, die ganzliche oder teilweise Ubertragung auf die Ver-
einigten Staaten von Amerika von Rechten, Privilegien oder
Interessen anerkennen wird, die solchen Staatsbiirgern auf
Grund der vorbeschriebenen Behandlung seitens der éster-
reichischen Bundesregierung eingerdiumt oder auf die sie an-
spruchsberechtigt werden, auf die Vereinigten Staaten von
Amerika anerkennen wird.

Alle itbrigen Bestimmungen des Artikels III des Abkom-
mens iiber Wirtschaftliche Zusammenarbeit vom 2. Juli 1948
in seiner derzeitigen Fassung sowie des vorgenannten Noten-
austausches zwischen unseren beiden Regierungen vom 14.
und 16. Februar 1952 behalten ihre volle Giiltigkeit und
Rechtskraft.

Wenn dieser Vorschlag fiir die ésterreichische Regierung
annehmbar ist, wollen Sie mir mit einer Note antworten.
Die vorliegende Note wird zusammen mit dieser Antwort ein
Ubereinkommen zwischen unseren beiden Regierungen bilden.
Das Ubereinkommen wird mit dem Datum Ihrer Antwortnote
in Kraft treten.

Beilage: Paragraph 413(b) (4) des Gesetzes iiber Gegenseitige Sicherheit

von 1954 in seiner derzeitigen Fassung.”

Ich beehre mich zu bestitigen, dass die in der zitierten Note
enthaltenen Bestimmungen fiir die dsterreichische Regierung
annehmbar sind und Einverstdndnis dartiber besteht, dass Ihre
Note und die vorliegende Antwort in diesem Gegenstande ein
Ubereinkommen zwischen unseren beiden Regierungen bilden, das
mit dem Datum der vorliegenden Note in Kraft tritt.

TIAS 4127


- 20-

understood that the undertaking of each Government in respect
of claims espoused by the other Govermnent pursuant to this
paragraph is made in the case of each Government under the
authority of and is limited by the terms and conditions of
such effective recognition as it has heretofore given to the
compulsory jurisdiction of the International Court of Justice
under Article 36 of the statute of the Court.

8. It 1s understood that any agreements which might be
arrived at pursuant to paragraph 2 of Article IX would be sub-
ject to ratification by the Senate of the United States of

America.


2. Taking into account Article VIII of the Convention for
European Economic Cooperation looking toward the full and effec-
tive use of manpower available in the participating countries
the Government of Austria will accord sympathetic consideration
to proposals made in conjunction with the International Refugee
Organization directed to the largest practicable utilization of
manpower available in any of the participating countries in
furtherance of the accomplishment of the purposes of this
Agreement.

3. The Government of Austria will take the measures which
it deems appropriate, and will cooperate with other participating
countries, to prevent, on the part of private or public commer-
cial enterprises, business practices or business arrangements
affecting international trade which restrain competition, limit
access to markets or foster monopolistic control whenever such
practices or arrangements have the effect of interfering with
she achievement of the joint program for European recovery.

| ARTIOIE ITT
(Guaranties)

1. The Governments of the United States of America and
Austria will, upon the request of either Government, consult
respecting projects 1n Austria proposed by nationals of the
United States of America and with regard to which the Government
of the United States of America may appropriately make guaranties
of currency transfer under Section 111 (b) (3) of the Economic
Cooperation Act of 1948.

2. The Government of Austria agrees that if the Government
of the United States of America makes payment in United States
dollars to any person under such a guaranty, any schillings,

or credits


-1l2-

Organization for European Economic Cooperation, which the
Government of the United States of America may need to
determine the nature and scope of operations under the
Economic Cooperation Act of 1946, anc to evaluate the
effectiveness of assistance furnished or contemplated
under this Agreement and generally the progress of the
joint recovery program.

ARTICLE VII

(Publicity)

1. The Governments of the United States of America and
Austria recognize that it is in their mtual interest that full
publicity be given to the objectives and progress of the joint
program for European recovery and of the actions taken in fur-
therance of that program. It is recognized that wide dissemin-
ation of information on the progress of the program is desirable
in order to develop the sense of common effort and mutual aid
which are essential to the accomplishment of the objectives of
the program.

2. The Government of the United States of America will
encourage the dissemination of such information and will make
it available to the media of public information.

3. The Government of Austria will encourage the dissemin-
ation of such information both directly and in cooperation with
the Organization for European Economic Cooperation. It will
make such information available to the media of public informa-
tion and take all practicable steps to ensure that appropriate
facilities are provided for such Gissemination. It will further
provide other participating countries and the Orsanization for
European Economic Cooperation with full information on the
progress of the program for economic recovery.

4. The Government


c. Amounts commensurate with the indicated dollar
cost to the Govdrnment of the United States of America
of commodities, services and technical information (includ-
ing any costs of processing, storing, transporting, repair-
ing or other services incident thereto) made available to
Austria on a grant basis by any means authorized under the
Economic Cooperation Act of 1948, less, however, the amount
of the deposits made pursuant to the exchange of notes
referred to in sub-paragraph b of this Article. The
Government of the United States of America shall from time
to time notify the Government of Austria of the indicated
dollar cost of any such commodities, services and technical
information, and the Government of Austria will thereupon
deposit in the special account a commensurate amount of
schillings computed at a rate of exchange which shall be
the par value agreed at such time with the International
Monetary Fund provided that this agreed value is the single
vate applicable to the purchase of dollars for imports into
Austria. If at the time of notification a per value for
the schilling is agreed with the Fund and there are one or
more other rates applicable to the purchase of dollars for
imports into Austria or, if at the time of notification no
par value for the schilling is agreed with the Fund, the
rate or rates for this particular purpose shall be mutually
agreed upon between the Government of Austria and the
Government of the United States of America. The Government
of Austria may at any time make advance deposits in the
special account which shall be credited against subsequent
notifications pursuant to this paragraph.

3. The Government


ons

rted

X-

,@
T

tica.

The Government of the United States of America will furnish

this assistance under the provisions, and subject to all of

the terms, conditions and termination provisions of the

Economic Cooperation Act. of 1948, acts amendatory and supple-
mentary thereto and appropriation acts thereunder, and will

make available to the Government of Austria only such commodities,
services and other assistance as are authorized to be made avail-
able by such acts.

2. The Government of Austria, acting individually and
through the Organization for European Economic Cooperation,
consistently with the Convention for European Economic Coopera-
tion signed at Paris on April 16, 1948, will exert sustained
efforts in common with other participating countries speedily
to achieve through a joint recovery program economic conditions
in Europe essential to lasting peace and prosperity and to
enable the countries of Europe participating in such a Joint
recovery program to become independent of extraordinary outside
economic assistance within the period of this Agreement. The

Government of Austria reaffirms its intention to take action

to carry out the provisions of the general obligations of the

Convention for European Economic Cooperation, to continue to
participate actively in the work of the Organization for European
Economic Cooperation, and to continue to adhere to the purposes
and policies of the Economic Cooperation Act of 1948.

3. With respect to assistance furnished by the Government
of the United States of America to Austria and procured from
areas outside the United States of America, its territories and
posseasions, the Government of Austria will cooperate with the
Government of the United States of America in ensuring that

procurement


3 TIAS 2516

The Appointed Ambassador of Austria to the Acting Secretary of
State

AUSTRIAN EMBASSY
WASHINGTON, D. Cc.
Ref, No, 1322 Fepruary 16, 1952
Sir:
I have the honor to acknowledge the receipt of your note of Feb-
ruary 14, 1952, which reads as follows:

“Excellency :

I have the honor to refer to the conversations which have recently
taken place between representatives of our two Governments rela-
ting to Article III of the Economic Cooperation Agreement between
the United States of America and Austria, signed at Vienna, on
July 2, 1948, as heretofore amended or supplemented. As a conse-
quence of these conversations, the Government of the United States
of America proposes the following agreement to the Government of
Austria:

The Governments of Austria and of the United States of
America will, upon the request of either of them, consult respect-
ing projects in Austria proposed by nationals of the United States
of America with regard to which guaranties under Section
111 (b) (8) of the Economic Cooperation Act of 1948, as hereto-
fore amended, have been made or are under consideration. With
respect to such guaranties extending to projects which are ap-
proved by the Government of Austria in accordance with the
provisions of the aforesaid Section, the Government of Austria
agrees:

a. That if the Government of the United States of America
makes payment in United States dollars to any person under
any such guaranty, the Government of Austria will recog-
nize the transfer to the United States of America of any
right, title or interest of such person in assets, currency,
credits, or other property on account of which such payment
was made and the subrogation of the United States of Amer-
ica to any claim or cause of action of such person arising in
connection therewith. The Government of Austria shall
also recognize any tranfer to the Government of the United
States of America pursuant to such guaranty of any com-
pensation for loss covered by such guaranties received from
any source other than the Government of the United States
of America;


-18-

ANNEX
(Interpretive Notes)

1. It 4s understood that the requirements of paragraph 1 (a)
of Article II, relating to the adoption of measures for the
efficient use of resources, woulc include, with respect to com-
modities furnished under the engagement, effective measures for
safeguarding such commodities and for preventing their diversion
to illegal or irregular markets or channels of trade.

®. It is understood that the obligation under paracraph
1 (c) of Article II to balance the budget as soon as practicable
would not preclude a deficit over a short period but woule mean
a budgetary policy involving the balancing of the budget in the
long run.

3. %It is understood that the business practices and business
arrangements referred to in paragraph 3 of Article II mean:

a. Fixing prices, terms or conditions to be observed
in dealing with others in the purchase, sale or lease of
any product;

be Excluding enterprises from, or allocating or dividing,
any territorial market or field of business activity, or
allocating customers, or fixing sales quotas or purchase
quotas;

ce. Discriminating against particular enterprises;

a. Limiting production or fixing production quotas;

e. Preventing by agreement the development or applica-
tion of technology or invention whether patented or un-
patented;

f. Extending the use of rights under patents, trade-
marks or copyrights granted by either country to matters
which, according to its laws and reculations, are not within

the scope


for

ental

the
ate

ant

38,

its

-15-

2. The Governments of the United States of America and
of Austria further agree that such claims may be referred, in
lieu of the Court, to any arbitral tribunal mutually agreed
upon.
5S. It 1s further understood that neither Government will
espouse & claim pursuant to this Article until its national
has exhausted the remedies available to him in the administra-
tive and judicial tribunals of the country in which the claim
arose.
ARTICLE X
(Definitions)
As used in this Agreement the term “participating country"
means
(1) any country which signed the report of the Com-
mittee of European Economic Cooperation at Paris on Septem-
ber 22, 1947, and territories for which it hes international
responsibility and to which the Economic Cooperation Agree-
ment concluded between that country and the Government of
the United States of America has been applied, and
(2) any other country (including any of the zones of
occupation of Germany, any areas under international
administration or control, and the Free Territory of Trieste
or either of its zones) wholly or partly in Europe, together
with dependent areas under its administration; for so long
as such country is a party to the Convention for European
Economic Cooperation and adheres to a joint program for
European recovery designed to accomplish the purposes of

this Agreement.

ARTICLE XI


TREATIES AND OTHER INTERNATIONAL ACTS SERIES 2516

ECONOMIC COOPERATION

Guaranties Under Public Law 472, 80th Congress,
as amended

Agreement between the
UnirEp STATES OF AMERICA
and AusTRIA

@ Effected by Exchange of Notes
Signed at Washington February 14
and 16, 1952

@ Entered into force February 20, 1952



c , gezeichneten Hochachtung.
Ne

5

Empfangen Sie, Exzellenz, die Versicherung meiner aus-

Ficn
8. E.
Herrn ao. u. bev. Botschafter
H. Freeman MattHews,
Wien
Translation
‘THE FEDERAL MINISTER
FOR
FOREIGN AFFAIRS

‘No, 635.013-Wpol-mult/s8 Vienna, October 23, 1958
EXcELLENCY: .

T have the honor to acknowledge the receipt of your note of
October 23, 1958, which reads as follows:

[For the English language text of the note, see ante, p. 1.]

T have the honor to confirm that the provisions contained in
the aforementioned note are acceptable to the Government of
‘Austria and it is agreed that your note and this reply will con-
stitute an agreement between our two Governments on this

) subject, the agreement to enter into force on the date of this note.

Accept, Excellency, the assurances of my highest consideration.

Ficu
His Excellency
H. Freeman MattHews,
Ambassador Extraordinary and Plenipotentiary,
Vienna.
TIAS 4127

U. 5. GOVERNMENT PRINTING OFFICE: 1798


procurement will be effected at reasonable prices and on reason-
able terms and so as to arrange that the dollars thereby made
available to the country from which the assistance is procured
are used in a manner consistent with any arrangements made by
the Government of the United States of America with such country.
ARTICLE IT
(General Undertakings )

1. In order to achieve the maximum recovery through the
employment of assistance received from the Government of the
United States of America, the Government of Austria will use
its beat endeavors:

a. To adopt or maintain the measures necessary to
ensure efficient and practical use of all the resources
available to it, including

(1) such measures as may be necessary to ensure
that the commodities and services obtained with
assistance furnished under this Agreement are used
for purposes consistent with this Agreement and, as
far as practicable with the general purposes outlined
in the schedules furnished by the Government of Austria
in support of the requirements of assistance to be
furnished by the Government of the United States of
America;

(2) the observation and review of the use of such
resources through an effective follow-up system
approved by the Organization for European Economic
Cooperation; and

(3) to the extent practicable, measures to locate,
identify and put into appropriate use in furtherance

of the joint


TIAS 2516 2

to such guaranty of any compensation for loss covered by such
guaranties received from any source other than the Government
of the United States of America;

b. That any claim against the Government of Austria, to which
the Government of the United States of America may be sub-
rogated as the result of any payment under such a guaranty,
shall be the subject of direct negotiations between the two
Governments. If, within a reasonable period, they are unable
to settle the claim by agreement, it shall be referred for final
and binding determination to a sole arbitrator selected by
mutual agreement. If the Governments are unable, within a
period of three months, to agree upon such selection, the
arbitrator shall be one who may be designated by the President
of the International Court of Justice at the request of either
Government;

c. That any currency transferred to the United States of America
pursuant to the terms of any such guaranty shall be accorded
the treatment provided in paragraphs 1 and 2 of the letter of
March 23, 1949 from the Austrian Federal Minister for For-
eign Affairs to the Chief of the Special Mission to Austria. [?]

If this proposal is acceptable to the Government of Austria, it is
suggested that you reply by note. This note, together with such reply.
will constitute an agreement between our two Governments on this
subject, the agreement to enter into force on the date of receipt of your
reply note. [?]

Accept, Excellency, the renewed assurances of my highest con-
sideration.

For the Secretary of State:
Aorran S. Fisnrr

His Excellency
Dr. Max LoewenTwat-CHULMECEY,
Appointed Ambassador of Austria,

‘Not printed
? Feb. 20, 1952.


. -10-
stabilization in Austria and for stimulating productive activity
and international trade and the exploration for and development
of new sources of wealth within Austria, including in particular:
a. Expenditures upon projects or programs, including
those which are part of a comprehensive program for the
development of the productive capecity of Austria and the
other participating countries, and projects or programs
the external costs of which are being covered by assistance
rendered by the Government of the United States of America
under the Economic Cooperation Act of 1948 or otherwise,
or by loan from the International Bank for Reconstruction
and Development; and
bd. Effective retirement of the national debt, es-
@ pecially debt held by the Austrian National Bank or other
banking institutions.

7. Any unencumbered balance, other than unexpended amounts
allocated under paragraph 4 of this Article, remaining in the
special account on June 50, 1952, shall be disposed of within
Austria for such purposes as may hereafter pe agreed between
the Governments of the United States of America and Austria, it
peing understood that the agreement of the United States of
America shall be subject to approval by act or joint resolution
of the Congress of the United States of America.

ARTICLE V
(Travel Arrangements and Relief Supplies)
1. The Government of Austria will cooperate with the
Government of the United States of America in facilitating and
@ encouraging the promotion and development of travel by citizens
of the United States of America to and within participating

countries.
2. The Government


TREATIES AND OTNER INTERNATIONAL ACTS SERIES 4127

GUARANTY OF PRIVATE INVESTMENTS

Agreement Between the
Unirep Stares or AMERICA
and Austria

Amending Article III of Agreement
of July 2, 1948, as Amended

Effected by Exchange of Notes
Signed at Vienna October 23, 1958



ECONOMIC
COOPERATION
AGREEMENT

Between

The UNITED STATES of AMERICA

and

AUSTRIA

DEPARTMENT OF STATE


TIAS 2516 4

b. That any claim against the Government of Austria, to which
the Government of the United States of America may be
subrogated as the result of any payment under such a
guaranty, shall be the subject of direct negotiations between
the two Governments. If, within a reasonable period, they
are unable to settle the claim by agreement, it shall be re-
ferred for final and binding determination to a sole arbitra-
tor selected by mutual agreement. If the Governments are
unable, within a period of three months, to agree upon such
selection, the arbitrator shall be one who may be designated
by the President of the International Court of Justice at
the request of either Government;

c. That any currency transferred to the United States of Amer-
ica pursuant to the terms of any such guaranty shall be
accorded the treatment provided in paragraphs 1 and 2 of
the letter of March 23, 1949 from the Austrian Federal Min-
ister for Foreign Affairs to the Chief of the Special Mission
to Austria.

If this proposal is acceptable to the Government of Austria. it
is suggested that you reply by note. This note, together with such
reply, will constitute an agreement between our two Governments
on this subject, the agreement to enter into force on the date of
receipt of your reply note.

Accept, Excellency, the renewed assurances of my highest con-
sideration.

For the Secretary of State:
s/s Aprian S. Fisrer.”

I have the honor to confirm to you that the provisions set forth in
the said note are acceptable to the Government of Austria and that
it is agreed that your note and this reply constitute an agreement
between our two Governments on this subject, the agreement to enter
into force on the date of receipt of this note.

Accept, Sir, the assurances of my highest consideration.

LorwentHaL

The Honorable
Tue Actine Secretary oF STATE
Department of State
Washington, D. C.

Wo GUERAMENT PRINTING Or FieL: 1955


ern-
ention
force

on

*nment
basic
she
shere-
“@
aont)

i upon
rent

‘minate

iph 3
itention

be
ment
which

United

iate

veness

- 17 -

’ of such subsidiary agreements and arrangements shall be
_ Governed by their ow terms. Article IV shall remain in effect

until all the sums in the currency of Austria required to be
deposited in accordance with its own terms have been disposed
of as provided in that Article. Paragraph 2 in Article III
shall remain in effect for so long as the guaranty payments
referred to in that Article may be made by the Government of
the United States of America.
4. This Agreement may be amended at any time by agreement

between the two Governments.

5. The Annex to this Agreement forms an integral part

’ thereof.

6. This Agreement shall be registered with the Secretary-
General of the United Nations.

In Witness whereof the respective representatives, duly
authorized for the purpose, have signed the present Agreement.
Done at Vienna, in duplicate, in the English and German languages,
both texts authentic, this second day of July, 1948.

For the Government of the For the Austrian
United States of America: Pederal Government:


-16-

ARTICLE XI
{Entry into Force, Amendment, Duration)

1. This Agreement shall become effective on this day's
date. Subject to the provisions of paragraphs 2 and 3 of this
Article, it shall remain in force until June 30, 1953, and,
unless at least six months before June 30, 1953, either Govern-
ment shall have given notice in writing to the other of intention
to terminate the Agreement on that date, it shall remain in force
thereafter until the expiration of six months from the date on
which such notice shall have been given.

2. If during the life of this Agreement, either Government
should consider there has been a fundamental change in the basic
assumptions underlying this Agreement, it shall so notify the
other Government in writing, and the two Governments will there-
upon consult with a view to agreeing upon the amendment, modifi-
cation or termination of this Agreement. If, after three months
from such notification, the two Governments have not agreed upon
the action to be taken in the circumstances, either Government
may give notice in writing to the other of intention to terminate
this Agreement. Then, subject to the provisions of paragraph 3
of this Article, this Agreement shall terminate either:

a. Six months after the date of such notice of intention
to terminate, or

b. After such shorter period as may be agreed to be
sufficient to ensure that the obligations of the Government
of Austria are performed in respect of any assistance which
may continue to be furnished by the Government of the United

States of America after the date of such notice.

3. Subsidiary agreements and arrangements negotiated
pursuant to this Agreement may remain in force beyond the date
of termination of this Agreement and the period of effectiveness

of such


The Secretary of State to the Appointed Ambassador of Austria

DeparTMENT OF STATE
WasHINcTon
Feb 14, 1952
EXcELLENcy :

I have the honor to refer to the conversations which have recently
taken place between representatives of our two Governments relating
to Article III of the Economic Cooperation Agreement between the
United States of America and Austria, signed at Vienna, on July 2,
1948, [?] as heretofore amended or supplemented.[?] As a conse-
quence of these conversations, the Government of the United States
of America proposes the following agreement to the Government of
Austria:

The Governments of Austria and of the United States of America
will, upon the request of either of them, consult respecting projects
in Austria proposed by nationals of the United States of America
with regard to which guaranties under Section 111 (b) (8) of the
Economic Cooperation Act of 1948, as heretofore amended. [3]
have been made or are under consideration. With respect to such
guaranties extending to projects which are approved by the Govern-
ment of Austria in accordance with the provisions of the aforesaid
Section, the Government of Austria agrees:

a. That if the Government of the United States of America makes
payment in United States dollars to any person under any such
guaranty, the Government. of Austria will recognize the trans-
fer to the United States of America of any right, title or in-
terest of such person in assets, currency, credits, or other prop-
erty on account of which such payment. was made and the
subrogation of the United States of America to any claim or
cause of action of such person arising in connection therewith.
The Government of Austria shall also recognize any transfer
to the Government of the United States of America pursuant

+ Treaties and Other International Acts Series 1780; 62 Stat., pt. 2, p. 2140.
* TITAS 2020: UST 145: TIAS 2283: and TIAS 238
° 62 Stat. 144: 22 U.S. C. $1509 (b) (3).

mM
261555!


mt

iles

mt @

“7.

or credits in Schillings, assigned or transferred to the
Government of the United States of America pursuant to that
section shall be recognized as property of the Government of
the United States of America.
ARTICLE IV
(Local Currency)

1. The provisions of this Article shall apply only with
respect to assistance which may be furnished by the Government
of the United States of America on a grant basis.

2. The Government of Austria will establish a special
account in the Austrian National Bank in the name of the
Government of Austria (hereinafter called the "special accowmt")
and will make deposits in schillings to this account as follows:

a. The unencumbered balance at the close of business
on the day of the signature of this Agreement in the
special account in the Austrian National Bank in the name
of the Government of Austria established pursuant to tne

Agreements between the Government of the United States of

America and the Government of Austria made on June 25,

1947 and January 2, 1948 and any further sums which may,

from time to time, be required by such Agreements to be

deposited in the special account. It is understood that

Sub-section (e) of Section 114 of the Economic Cooperation

Act of 1948 constitutes the approval and determination of

the Government of the United States of America with respect

to the disposition of such balance, referred to in these

Agreements.

be The unencumbered balances of the deposits made
by the Government of Austria pursuant to the exchange of

notes between the two Governments dated April 15, 1948.

ce Amounts


full

int

-13 -

4. The Government of Austria will make public in Austria
in each calendar quarter, full statements of operations under
this Agreement, including information as to the use of funds,
commodities and services received.

ARTICLE VIII
{Missions )

1. The Government of Austria agrees to receive a special
mission for economle cooperation which will discharge the
responsibilities of the Government of the United States of
America in Austria under this Agreement.

2. The Government of Austria will, upon appropriate
notification from the Minister of the United States of America
in Austria, consider the special mission and its personnel,
and the United States Special Representative in Europe, as part
of the Legation of the United States of America in Austria for
the purpose of enjoying the privileges and immunities accorded
to that Legation and its personnel of comparable rank. The
Government of Austria will further accord appropriate courtesies
to the members and staff of the Joint Committee on Foreign
Economic Cooperation of the Congress of the United States of
america and grant them the facilities and assistance necessary
to the effective performance of their responsibilities.

3. The Government of Austria, directly and through its
representatives on the Organization for European Economic Co-
operation, will extend full cooperation to the special mission,
to the United States Special Representative in Europe and his
staff, and to the members and staff of the Joint Committee.
Such cooperation shall include the provision to the extent
practicable of all information and facilities necessary to the

observation


€

SN

3

The Austrian Minister for Foreign Affairs to the American

Ambassador
DER BUNDESMINISTER
FUR DIEZ
AUSWARTIGEN ANGELEGENHEITEN
21.035.011-W pol-mult/58 Wien, am 23. Oktober 1958
Exze.ienz!

Ich beehre mich, den Empfang Ibrer Note vom 23. Oktober
1958 zu bestitigen, die wie folgt lautet:

“Ich beehre mich, auf Artikel III des am 2. Juli 1948 in Wien
unterzeichneten Abkommens tber die Wirtschaftliche Zusammen-
arbeit zwischen den Vereinigten Staaten von Amerika und
Osterreich in seiner derzeitigen Fassung sowie auf den Noten-
austausch vom 14, und 16. Februar 1952, womit dieses urspriing-
liche Abkommen abgeindert wurde, und ferner auf die vor kurzem
zwischen Vertretern unserer beiden Regierungen abgehaltenen
Besprechungen iiber eine weitere Art einer Garantie, fiir welche
Paragraph 413(b)(4)(B) (ii) des Gesetzes tiber Gegenseitige Sicher-
heit von 1954 in seiner derzeitigen Fassung die gesetzliche Grund-
lage bildet, Bezug zu nehmen. Ich beehre mich ferner, die auf
Grund dieser Besprechungen getroffenen Abmachungen wie folgt
zu bestatigen:

a) Jedwede in Artikel III des Abkommens fiir Wirtschaftliche
Zusammenarbeit zwischen der Regierung dér Vereinigten
Staaten von Amerika und der ésterreichischen Regierung vom
2. Juli 1948 in seiner derzeitigen Fassung sowie in dem Noten-
austausch zwischen unseren beiden Regierungen vom 14. und
16. Februar 1952 enthaltene Bezugnahme auf ‘Paragraph
111(b)(3) des Gesetzes fiir Wirtschaftliche Zusammenarbeit
von 1948” ist als Bezugnahme auf “Paragraph 413(b) (4) des
Gesetzes iiber Gegenscitige Sicherheit von 1954 in seiner
derzeitigen Fassung” zu verstehen.

Die beiliegende Abschrift des Paragraph 413(b) (4) des Gesetzes
tiber Gegenseitige Sicherheit von 1954 in seiner derzeitigen
Fassung ersetzt die dem vorgenannten Notenaustausch ange-
schlossene Beilage.

b

e) Unterabsatz (b) des unnumerierten zweiten Absatzes des
vorgenannten Notenaustausches findet auf dic im nachste-
henden Unterabsatz (d) vorgeschene Art einer Garantie keine
Anwendung.

d

Gibt die Regierung der Vereinigten Staaten von Amerika fir
Investitionen in Osterreich Garantien zur Deckung von Ver-

TIAS 4127


THE FOREIGN SERVICE
OF THE
UNITED STATES OF AMERICA

REPUBLIC OF AUSTRIA

LEGATION OF THE
UNITED TATSS OF ALEFICA

)
)

CITY OF VIENNA ) SS.
)

I, Robert L. James, Vice Consul of the United
States of America at Vienna, Austria, duly commissioned
and gjualified, do hereby certify that the annexed note
ho. 55, dated July 2, 1948, from the Minister of the
United States of America to the Minister of Foreign
Affairs of the Hepublic of Austria is a true and
correct copy of the signed original, the same having
been carefully examined by me and found to agree with

the said original word for word and figure for figure.

In witness whereof I have
hereunto set my hand and caused
the seal of my office to be
affixed this second day of

July, 1948.

(Lee

\Robert L. Janes
Vice ‘Consul of the United
States of America,
Vienna, Austria.


the Government of Austria is a member of the Organization for
European Economic Cooperation created pursuant to the provisions
of that Convention;

Considering also that, in furtherance of these principles,
the Government of the United States of America has enacted the
Economic Cooperation Act of 1948, providing for the furnishing
of assistance by the United States of America to nations par-
ticipating in a joint program for European recovery, in order
to enable such nations through their ow individual and concerted
efforts to become independent of extraordinary outside economic
assistance;

Taking note that the Government of Austria has already ex-
pressed its adherence to the purposes and policies of the
Economic Cooperation Act of 1948;

Desiring to set forth the understandings which govern the
furnishing of assistance by the Government of the United States
of America under the Economic Cooperation Act of 1948, the
receipt of such assistance by Austria, and the measures which
the two governments will take individually and together in
furthering the recovery of Austria as an integral part of the
joint program for European recovery;

Have agreed as follows:

ARTICLE I
(Assistance and Cooperation)

1. The Government of the United States of America under-
takes to assist Austria by making available to the Government
of Austria or to any person, agency or organization designated
by the latter Government such assistance as may be requested by
it and approved by the Government of the United States of America.

The Government


2

c. Sub-paragraph (b) of the unnumbered second Paragraph of
the aforementioned exchange of notes shall not be applicable
to the type of suaranties provided for in the following sub-
Paragraph (d).

d. If the Government of the United States of America issues
guaranties to cover losses by reason of war with respect to
investments in Austria, the Austrian Federal Government
declares that it will insure in the event of future war damage

* nationals of the United States of America to whom such

guaranties have been issued will not. be treated less favorably
than Austrian nationals, or nationals of third countries,
within the framework of any war damage indemnity act or
other measures. The Austrian Federal Government further
declares that if the Government of the United States of
America makes payment in U.S. dollars to any national of
the United States of America under a uaranty for losses by
Teason of war, the Austrian Federal Government will Tecog-
nize the transfer to the United States of America of any
right, privilege, or interest, or any part thereof, that such

Agreement of July 2, 1948, as heretofore amended, and of the

If this proposal is acceptable to the Government of Austria, it
is suggested that you reply by note. This note, together with
such reply, will constitute an agreement between our two Gov-
ernments on this subject, the Agreement to enter into force on the
date of your reply note.

Accept, Excellency, the Tenewed assurances of my highest
consideration.

B. Freeway Marranws
Attachment: 10]

Section 413 (b) (4) of the Mutual
Security Act of 1954, as hereto-
fore amended.
His Excellency
Dipl. Ing. Leororp Frau,
Minister for Foreign A lfairs,
Vienna I,
Ballhausplate 2,

—_
1 Not printed,
TIAS 4127 a

}


x )

opment
sicular;:

aiding

-stance
aerica
se,

stion

a, it

ution

‘@

at

-lle-

2. The Government of Austria will, when so desired by
the Government of the United States of America, enter into
negotiations for agreements (including the provision of duty-
free treatment under appropriate safeguards) to facilitate
the entry into Austria of supplies of relief goods donated to
or purchased by United States voluntary non-profit relief
agencies and of relief packages originating in the United States
of America and consigned to individuals residing in Austria.

ARTICLE VI

(Consultation ane Transmittal of Information)

1. The two Governments will, upon the request of either
of them, consult regarding any matter relating to the application
of this Agreement or to operations or arrangements carried out
pursuant to this Agreement.

2. The Government of Austria will communicate to the
Government of the United States of America in a form and at
intervals to be indicated by the latter after consultation with
the Government of Austria:

a Detailed information of projects, programs and
measures proposed or adoptea by the Government of Austria
to carry out the provisions of this Agreement and the
general obligations of the Convention for European Economic
Cooperation.

be. Full statement of operations under this Agreement,
including a statement of the use of funds, commodities and
services received thereunder, such statements to be made in
each calendar quarter.

ce. Information necessary to supplement that obtained
by the Government of the United States of America from the

Organization


AUSTRIA

Guaranty of Private Investments

Agreement amending article III of the agreement of July 2, 1948,
as amended.

Effected by exchange of notes

Signed at Vienna October 23, 1958;

Entered into force October 23, 1958.

The American Ambassador to the Austrian Minister Sor Foreign
Affairs

No, 626 Vienna, October 28, 1968

ExcELLency:

Thave the honor to refer to Article III of the Economic Coopera-
tion Agreement between the United States of America and Austria
signed at Vienna on July 2, 1948 as heretofore amended, and to the IAG en 20 249,
exchange of notes of February 14 and 16, 1952 amending this 2, 1 esP ae 2
original agreement; and to the conversations which have recently Tras 2516,
taken place between the representatives of our two Governments 2UST:Pt-3.p.s874.
relating to a further type of guaranty authorized by Section 413
(b) (4) (B) (ii) of the Mutual Security Act of 1954, as heretofore BOs Bi 10330)
amended. I also have the honor to confirm the understandings “) ®) @).
reached as a result of these conversations as follows:

a. All references to “Section 111 (b) (3) of the Economic
Cooperation Act of 1948” in Article III of the Economic 2 O'8. 4 1500 (b)
Cooperation Agreement between the Governments of the ®).
United States of America and Austria of July 2, 1948, as
amended; and in the exchange of notes of February 14 and
16, 1952 between our two Governments, shall be understood
as referring to: ‘Section 413 (b) (4) of the Mutual Security
Act of 1954, as heretofore amended.”

b. The enclosed copy ['] of Section 413 (b) (4) of the Mutual
Security Act of 1954 as heretofore amended, shall be sub-
stituted for the copy enclosed with the aforementioned
exchange of notes.

Cc ! Not printed.

QO

‘31878 169) TIAS 4127


21 (a)

for

‘sion

able

the

-Ca=

thin

-19-

the scope of such grants, or to products or conditions

of production, use or sale which are likewise not the

subjects of such grants; and

& Such other practices as the two governments may
agree to include.

4. It is understood that the Government of Austria is
obligated to take action in particular instances in accordance
with paragraph 3 of Article II only after appropriate inves-
tigation or examination.

5. It 1s understood that the Government of Austria will
not be requested, under paragraph 2 (a) of Article VI, to
furnish detailed information about minor projects or confidential
commercial or technical information the disclosure of which
would injure legitimate commercial interests.

6. It is understood that the Government of the United
States of America in making the notifications referred to in
paragraph 2 of Article VIII will bear in mind the desirability
of restricting, as far as practicable, the number of officials
for whom full diplomatic privileges will be requested. It is
also understood that the detailed application of Article VIII
will, when necessary, be the subject of inter-governmental
discussion.

7. %It is understood that if the Government of Austria
should accept the compulsory jurisdiction of the International
Court of Justice under Article 36 of the statute of the Court,
on suitable terms and conditions, the two Governments will con-
sult with a view to replacing the second sentence of paragraph 1
of Article IX with provisions along the following lines: It is

understood


-14-<-

observation and review of the carrying out of this Agreement,
including the use of assistance furnished under it.
ARTICLE IX
(Settlement of Claims of Nationals)

1. The Governments of the United States of America and
Austria agree to submit to the decision of the International
Court of Justice any claim espoused by either Government on
behalf of one of its nationals against the other Government for
compensation for damage arising as a consequence of governmental
measures (other than measures concerning enemy property or
interests) taken after April 3, 1948, by the other Government
and affecting property or interests of such national, including
contracts with or concessions granted by duly authorized
authorities of such other Government. It is understood that
the undertaking of the Government of the United States of America
in respect of claims espoused by the Government of Austria pur-
sueant to this Article is made under the authority of and is
limited by the terms and conditions of the recognition by the
United States of America of the compulsory jurisdiction of the
International Court of Justice under Article 36 of the statute
of the Court, as set forth in the Declaration of the President
of the United States of America dated August 14, 1946. The
provisions of this paragraph shall be in all respects without
prejudice to other rights of access, if any, of either Govern-
ment to the International Court of Justice or to the espousal
and presentation of claims based upon alleged violations by
either Government of rights and duties arising under treaties,
agreements or principles of international law.

2. The Governments


American Legation
No. 55

’ Vienna, Austria, July 2, 1945

Sir:

I have the honor to refor to Article IV of tho
Econaaic Cooperation Agreement of this cate hetweer. our
two Sovernments. In rezarac to the provisiors of this
Article, your attention ig invited to the fact thet
Section 115 (b) (6) of the Econanle Coonerction Act of
1048 erantsa wide discretion to authorize the use of funds
fron the Special Schilling Account, provided for there-
under, for pursose of interaal monetary end firarciel
stabilization, for the stimuletiorn of procuctive activity
and the exploration for enc developvent of new sources
of wealth end for such other expenditures as may be con-
sistent with the purposes of the Act. You may be sure
that the Government of the United States of America and
the Economic Cooperation Administrator desire as full
as the Austrian Soverntent to bring about econonic re-
covery in Austria arc will taxe every reasornauie measure,
within the broad scope of this provision of the Economic
Cooperation Act referred to above, to assist the Austrian

Governnont
The Honorable
Karl Cruber,
Winister of Foreign Affairs,

Vienna.


ECONOMIC COOPERATION AGREEMENT BETWEEN
THE UNITED STATES OF AMERICA AND AUSTRIA

PREAMBLE

The Governments of the United States of America and
Austria:

Recognizing that the restoration or maintenance in European
countries of principles of individual liberty, free institutions,
and genuine independence rests largely upon the establishment of
sound economic conditions, stable international economic rela-
tionships, and the achievement by the countries of Europe of 4
healthy economy independent of extraordinary outside assistance;

Recognizing that a strong and prosperous European economy
is essential for the attainment of the purposes of the United
Nations;

Considering that the achievement of such conditions calls
for a European recovery plan of self help and mutual cooperation,
open to all nations which cooperate in such a plan, based upon a
strong production effort, the expansion of foreign trade, the
creation or maintenance of internal financial stability and the
development of economic cooperation, including all possible steps
to establish and maintain valid rates of exchange and to reduce
trade barriers;

Considering that in furtherance of these principles the
Government of Austria has joined with other like-minded nations
in a Convention for European Economic Cooperation signed at
Paris on April 16, 1948, under which the signatories of that
Convention agreed to undertake as their immediate task the
elaboration and execution of a joint recovery program, and that

the Government