Paris Peace Conf. 184.011102/444
Mr. Albert Halstead to the Secretary of State37
Subject: Italian investments in Austria.
Sir: I have the honor to report that of the four powers—United States, United Kingdom, France, and Italy—Italy is the only power that has made large investments in Austria. The Italians have purchased large interests in the Austrian Lloyd, Adria, Austro-American and several smaller steamship companies, and the Alpine Montan Iron Ore Company which controls practically all the iron ore out put of Austria. The Italians have also purchased the Urainische Stahlweike in Trieste. Other investments have been made, so it is reported but information is not available at the moment, as what are the companies in which Italy has purchased interests. The British have purchased the old Government printing office and are reported to have invested heavily in the Danube Steamship Company but the latter report does not appear to be correct for otherwise share quotation would have advanced much more rapidly.
The Italians have exported largely of textiles and other products to Austria paying for them in lire which they have bought up at good rates in coffee houses in Vienna.
The Italians have shown a pronounced desire to do as much business as possible and according to reports reaching me from a source which seems fully reliable, many of the Italian officers have not hesitated to use their positions for business purposes. For example:—Textiles that come to Austria from Italy enter Austria at Laibach which is occupied by Italian troops. There it is stated that large quantities of textiles are escorted across the frontier by Italian officers in uniform for sale in Austria. Some of the goods are stored here and sold to the nations that had formerly been parts of the old Austrian Empire. The town of Laibach is reported to be filled with Galicians who participate in this trade. I have also been informed, and by a leading banker, that the Italians connected with the Mission have used information they [Page 570] have officially obtained in business transactions which have netted them large sums.
No other Mission here is known to have followed this policy. The American Mission certainly has not and the British have been equally particular in their conduct while there is every reason to believe the French have been beyond criticism in their conduct.
I have [etc.]
- Copy transmitted to the Commission by Mr. Halstead under covering letter No. 442, September 12; received September 17.↩