TREATMENT OF AUSTRIA - SUMMARY
 
I. The basic aim of American policy in Austria is its
immediate separation from Germany and establishment of
an independent Austrian state. This aim is expressed 
in the Moscow Declaration of November 1, 1943 (text at-
tached in Appendix I), which promised Austria libera-
tion from German domination and pledged the three powers
to open the way for the Austrian people themselves to
find that political and economic security which is the
only basis for a lasting peace. Austria's strategic
location in Central Europe makes both its future internal
stabilityand its relations to neighboring states a 
matter of pressing concern to the international community
and to the United States.
 
II. The United States favors restoration of the 1937
frontiers of Austria with the addition of the province
of Bolzano from Italy and the exclusion of two small
mountain communities in the Sonthofen area attached to
Bavaria.
 
III. The aims of American policy, the Moscow Declara-
tion, and the requirements of general security can best
be achieved by the following steps:
 
     A. Complete tripartite military occupation and
government of Austria. (To assure us a full voice in
Austria, the Department of State recommends that we
occupy a zone equally with the British and Russians.
It is clear that we cannot have an equal voice without
equal participation in the actual occupation. The
Department of State recommends that changes be made in
the Soviet proposal for zonal occupation to enlarge the
area of the City of Vienna to include the Gau or Vienna
to extend tripartite division to the Innere Stadt or
Vienna, and to include Ost-Tirol in the same occupation
zone as the province of Karnten).
 
     B. Legal, administative and economic separation
from Germany, and denazification.
 
     C. Treatment different from Germany, designed to
foster:
                              1. Restoration