Paris Peace Conf. 184.011102/431
Mr. Albert Halstead to the Secretary of State 33
Subject: Opportunities for investment in Austria.
Sir: I have the honor to state that while the reduction of Austria to a small state of less than 7,000,000 people and the pronounced ambition of the Czecho-Slovaks to make Prague the financial and commercial center of that part of Central Europe which was formerly the Austrian Empire will seriously jeopardize the future of Vienna, it is not improbable that this would have but a temporary effect. Vienna’s geographical position makes it a natural center for commerce from all parts of Europe.
The present outlook is almost desperate, but even though political union between the nations that formed the Austrian Empire was unsuccessful, the commercial ties were so developed, and that development [Page 567] was so natural, that it must be expected that even though at present severed, they will later become almost as important again.
With the Austrian crown worth about a cent and seven-tenths, opportunities have recently been afforded, and many continue, for investments here that in the future should increase many times in value. Even though the city should lose half a million people and become but four-fifths as large, business property in its center would still be a bargain at the price in American money at which it could now be purchased. The British have recognized this—they have purchased the new printing office of the Austrian Government; the Italians have recognized this—they have purchased shares in the iron-ore company called the Alpine-Montan Gesellschaft; the French are reported to have made investments. The British have purchased large interests in the Danube Steamship Company with its capital of a little over 50,000,000 crowns and valuable coal deposits in Hungary and with its fleet of river steamers including those for the carrying of oil.
The Danube traffic would be under the supervision of an American and through shipments would be possible. American capital can still purchase heavily in this company with prospectively large returns. Though there be depreciation and the greatest distress in the near future the skill of the Vienna workmen will not be lessened and sooner or later at least a partial return to the prosperity that existed before the war is certain.
In all the circumstances, with the feeling of sympathy and the confidence in the United States, it seems regrettable that American financiers have been so apparently indifferent: that American exporters have been to such a great degree unwilling to take property or mortgages on the same as security for the sales to this country, all of which would have tended to create commercial ties which when the better times set in would be very remunerative and which at the same time would assist in the re-establishing credit in a sorely tried nation. It is suggested that though many valuable opportunities have been snapped up by the British, Italian and French, others still offer which would seem to make it worth while for financiers to investigate in person.
I have [etc.]
- Copy transmitted to the Commission by Mr. Halstead under covering letter No. 434, September 9; received September 11.↩