Immediately after WW2, the USSR favoured a unified German state that was neutralised and offered no threat
Austria was divided into occupation zones and the USSR focused on receiving economic aid from Austria as they had from the Soviet Zone of Germany
Austria had the potential to become as great an issue as dividing East and West Germany had been until 1949
Austrian leaders in the Western Zones promoted the idea that Austria could easily be absorbed into the Soviet sphere of influence as Czechoslovakia had been a few years earlier
Some observers even referred to Austria as ‘Europe’s Korea’
By 1955 – USSR showed serious intentions for negotiations over the future of Austria
May 1955 – 4 occupying powers reached agreement in the form of the Austrian State Treaty
Led to the withdrawal of all occupying powers and the declaration that Austria was a neutral state
In line with USSR’s willingness to accept both Finland and Yugoslavia as neutral states and not liable to join the Soviet sphere of influence
This agreement showed a serious intent towards mutual co-operation and removed a major source of potential conflict
Western powers then removed their occupation forces from West Germany
This cooperation consolidated the East-West position
Next significant step was taken with the decision to resume summit diplomacy