Evening star., 1947-03-27
Mo|otov Agrees
To Define Naziis'
Austrian Assets
Action Stirs Hope for
UntongIing Of Major
reuty Complications
BY the Associated Press

MOSCOW, Mar. Soviet
Foreign Minister Molotov agreed
tonight to consider-as a basis
for discusSion-a French pro-
poSal to define German assets
In Austria. This raised hope that
the Council of Foreign Ministers
might untangle this major COM
plication in the framing of Aus
tria's treaty.
The Russians up to now have held
that any German assets in the
eastern zone of Austria belonged to
them without question, and that no
definition was necessary Of just
what these assets were.
No decision was reached today,
but there was an indication COM
promise was likely on this most
controversial point of the Austrian
pact.
Compromise Offered.
However, Mr.. Molotov submitted
a compromise proposal which Amer
ican authorities said unoff1cially
they considered unacceptable. The
Americans and British have insisted
there must be agreement that no
property would be taken from Aus
tr1a as German assets which in fact
had been acquired by the Germans
by force or duress in annexing the
nation.
The British and Americans also
took the position that Austria must
De left with sufficient assets to be
able to survive as an independent
nation.
American officials said privately
that Mr.. Molotov's proposed defni-
tion was not sufficiently specific and
still would allow extensive removals
OF so-called German assets which
IN the American and British view
were not properly so classified, and
the removal of which would be det-
rimental to Austria.
Earlier today the Austrian FOREIGN
Minister, DR.. Karl Gruber, conferred
Tor 40 minutes with Mr.. Molotov
Emerging from the conference. Dr.
Gruber said he had been encouraged
about the prospects of getting
completed Austrian treaty during
this session of the Council.
Want Precise Definition.
In the Council session the Ameri-
can, British and French ministers
maintained there was no question
OF depriving the Russians of legiti-
mate German assets, but said
precise definition was needed since
the Germans had seized much prop
erty in>Austria without payment to
either the Austrians or other
owners.
After a brief recess-the first of
these Moscow sessionS-Mr. Molotoy
agreed to two points in the French
proposal on German assets, and on
one OF the points, suggested an
amendment. He rejected a third
point-calling for an arbitration
board to settle disputes between the
Russians and others as to what con-
stitued German assets.
Mr.. Molotoy proposed that the
deputies of the foreign ministers be
instructed to prepare definition
OF German assets excluding property
seized by the Germans by direct
force or as a measure of aryaniza-
ton without compensation from the
United Nations or the Austrians."
The original French proposal on
this point called for preparation of
"a definition of German assets, ex-
cluding all property taken by force
or duress and in general unduly
taken by the Germans from the
United Nations or Austria, for re-
ligious, political and racial reasons" 4"
British Foreign Secretary Bevin
said he would have to study Mr..
Molotov's amendment, and the
meeting adjourned until tomorrow.
Hartman Letter Cited.
Mr.. Molotov brought up during
today's session heretofore secret
letter of the former United States
Ambassador to the Soviet Union, w.
Averell Hartman, to Mr.. Molotov
IN September, 1945. He quoted this
letter as follows:
THE Soviet government will dis
pose of assets in Finland, Hungary,
Bulgaria and Romania and assets in
Eastern Austria without reference to
British, French or United States
representation; British, French and
United States representatives on the
Allied Control Council will dispose
of all other German external as
(See MOSCOW, Page A-4)