Monday, Oct. 24, 1949

The Same Horse Twice

At the Paris Foreign Ministers' conference last spring (TIME, June 27), it looked as though the Russians had finally agreed to an Austrian peace treaty--in exchange for Western concessions (e.g., $150 million reparations from Austria). But this month, when the ministers met again in New York (taking time out from the U.N. General Assembly), it appeared that, as usual, the Russians were trying to sell the same horse twice. The new Soviet price for an Austrian settlement included: P: Some 95% of Austrian oil output, 35% more than agreed upon at Paris. P: A large percentage of the rolling stock of Austrian railways.

P: Free'movement on Austrian waterways, ownership of all Austrian shipping taken over by the Germans, and control of Austrian docking facilities. (As far as shipping goes, the Russians have already seized almost everything worthwhile.)

By last week, the Foreign Ministers had handed the matter back to their weary deputies, who have been struggling with it on & off through 200-odd meetings over the past 2 1/2 years.

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