(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A006000010052-4
• Release Decision: RIFPUB
• Original Classification: T
• Document Page Count: 2
• Document Creation Date: December 20, 2016
• Document Release Date: December 14, 2000
• Sequence Number: 52
• Publication Date: May 2, 1949
• Content Type: SUMMARY

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Approved For Release 22X7/02/0 C ClARDP78-01617AO06000010052-4
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State Dept. declassification & release instructions on file
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"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
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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?
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