You will recall that the post-war relations between Canada and Austria were reviewed in a memorandum which I had prepared for you on January 21st, 19484 After pointing out that Canada had never been at war with the political entity of Austria, nor with any Austrian predecessor to the present Government, the memorandum reported that both the Canadian High Commissioner in London and the Canadian Ambassador in Washington had been approached by their Austrian colleagues with a view to exchanging diplomatic representation; and that the Austrian Minister in Washington had explained that his Government would like to open a Legation in Ottawa, or at least a Consulate-General, even if the Canadian Government were not able to reciprocate for the time being.

2. Your comment on the memorandum on FebruaTy 12th was: "Council feels we should not be in any hurry about this. We are not able to expand at present." On February 14th you added: "In view of attitude of Council re our mission in Rome, I prefer not to bring up the matter of diplomatic relations with Austria at this time. Perhaps we might consider it a few weeks hence when again discussing Rome."

3. The elevation of our mission in Rome from Legation to Embassy has recently received your, and the Prime Minister's, approval. I feel that consideration might now be given to the Austrian Government's request for some sort of representation here.

4. The Austrian Government, since the date of my previous memorandum on the subject, has continued to press this matter, and not only through their Ministers in London and Washington. As you know, the Austrian Chancellor himself brought it up when he received Mr. Manion of our Rome Legation, during the latter's visit to Vienna in connection with Canadian relief shipments. In a despatch dated February 24th Mr. Manion reported: "The Austrian Government desires by all possible means to strengthen its position vis-à-vis the Western Powers."

5. I consider that recent developments in Europe make it advisable for us to do what we can to help Austria strengthen the ties with the West upon which it evidently sets such store. It is true that our shortage of staff makes it inadvisable to consider an exchange of diplomatic representatives for the time being. However, I can see no objection to the Austrian Government's alternative suggestion, that an Austrian Consulate-General be appointed to Ottawa, - a step, of course, which involves no obligation whatever on our part to reciprocate.

6. I would suggest, therefore, that we might instruct the Canadian High Commissioner in London to inform his Austrian colleague that the Canadian Government would now welcome the establishment of an Austrian Consulate-General in Ottawa. In doing so he should make clear that we cannot reciprocate now or in the foreseeable future.¹⁰

L.B. P[EARSON]

¹⁰Note marginale :/Marginal note:
I prefer to wait until I can suggest something Inure obvious in the way of advantages to a grouping of the Western Powers. St. L[aurent] 7.5.48