[1] During the First World War, Austria – which formed the nucleus of the Austro-Hungarian Empire – was defeated by the Allied Powers, one of which was the United States of America.

At the end of the war in 1918, Austria-Hungary disintegrated and Austria was established as an independent republic.

As a result, the two governments started negotiations for a bilateral peace treaty not connected to the League of Nations.

The treaty laid the foundations for a US-Austrian cooperation not under the strict supervision of the League of Nations.

The treaty was supplemented by a treaty signed in Washington on November 26, 1924, which provided for the establishment of a mixed US-Austrian-Hungarian commission to decide amount of reparations to be paid by the Austrian and Hungarian governments to the US.