Revolving Defense

No one had expected the Russians to agree to a German settlement. But there had been real hope for Austria. By the Moscow Declaration of 1943, Russia had agreed that Austria should be treated as a liberated country. After 374 discussions over seven years, "every conceivable nook and cranny," as Dulles pointed out. had been explored. All that remained to be done was to reach agreement on five disputed articles. Chancellor Julius Raab was willing and even eager to pledge Austria's neutrality. Foreign Minister Leopold Figl was sent to Berlin prepared to accept the heavy price demanded by the Russians for Austria's freedom--payment of $150 million for German war assets captured by the Russians, Russian rights to exploit 60% of Austrian oil production. "We have a problem of completely manageable magnitude," said Dulles. "If the Soviet Union will join us in doing this deed, the whole world will rejoice."

The hope was soon dashed. With a practiced hand, Molotov made the manageable unmanageable. His new conditions: occupying troops must remain in Austria until

1) a German peace treaty is signed, and

2) agreement is reached on Trieste. Said Dulles: "My first reactions are those of a cold chill."

Cold Chills. It was the typical Russian revolving defense. Molotov's real reason, Dulles suggested, was one he had not mentioned: Russia's Red armies are legally kept in Hungary and Rumania on the pretext of maintaining communication with Soviet occupation forces in Austria.

Molotov tried to make plausible the continued presence of Soviet troops. "The U.S. has eight military bases in France," he argued. "What is this? Is it an occupation?" Snapped Dulles: "There is no comparison. There is no state in the world in which the U.S. has a base that is not there at the invitation of that country. The U.S. will have no part in forcing these bases on any country, and will not force them on Austria."

Molotov then made his position clear with the baldest statement of the conference: "If the U.S., France, and Great Britain would write off creation of EDC, if they would write off revival of militarism in West Germany, the situation would become easier.".

Alarmed Squid. At this point, the West really put the unyielding Molotov on the spot. Bidault declared that France would give in to the Russians on all five disputed articles if only the conference could get to a peace treaty. Eden concurred, and Dulles was about to. That left no obstacle to signing the existing treaty. Flustered, Molotov retreated like an alarmed squid, throwing off black clouds of protests, protocol, and procedural double talk. "We must not get in a muddle," he protested.

Molotov ducked and wove, argued that the question of Trieste should be settled first. "We did not come here to discuss Iceland, Morocco, Gibraltar or Trieste, we came to discuss Austria," retorted Dulles. Four fruitless hours later, Bidault said: "We have conceded all we were ever asked to concede, and now we are confronted with heart-rending new proposals."

Cabled TIME Correspondent Eric Gibbs from Berlin: "Much has been said of Molotov's propaganda motives in the Berlin conference, but this week has made clear that Russia is not really prepared to yield one square inch of territory in exchange for any political or propaganda advantage."

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