Paris Peace Conf. 184.011102/671
Mr. Albert Halstead to the Secretary of State58
Subject: State Chancellor’s conference with the four missions.
Sir: I have the honor to report that the State Chancellor of Austria, Dr. Renner, several days ago requested the heads of the Missions of the United States, the United Kingdom, France, Italy and the Chief of the Japanese Military Mission to meet him at the State Chancery. The representatives attended. The State Chancellor was represented by the Food Controller, the Secretary of Finance, the Secretary of Commerce and Public Works and the Secretary of Railways. The discussion opened with a frank statement by the State Chancellor of the difficulties that confronted the State of Austria, and that without help a catastrophe could not be avoided.
There are inclosed statements read by the various cabinet officers present59 for such consideration as the Department sees fit to give them.
As the statements, copies of which are enclosed, were read, various points were discussed, all of which served to confirm my view, which I also understand is that held by my colleagues, that the Austrian [Page 599] situation is very precarious. The French representative, Mr. Allizé, announced however, after the Minister for Railways had indicated how pressing was the need of coal cars and the difficulties which were met in securing the return of cars from other States formerly part of Austria, as well as the delivery of coal in cars after it had once been started for Austria, that an arrangement had been made by the Supreme Council for the control of the transit of coal between the various countries that furnished and obtained coal so that wagons would be returned and coal billed for any definite place reach there. The Department will remember that this plan was initiated by the Vienna Sub-Commission of the Organizing Committee of the Reparation Commission, which insisted that coal trains should come unbroken from the mines, and should be ticketed with a label indicating that they were under the control of this Commission, and that such trains should remain as originally consigned until officially released. I had not thought it wise to make this announcement inasmuch as it had never been officially communicated, but had come to me through the co-operation which characterizes the relations of this Mission with the American part of the Sub-Commission. The State Chancellor and the other Austrian officials present were very much encouraged at the announcement of this arrangement, which, by the way, is not as yet effective.
It was pointed out that the Police President of Vienna could not guarantee the safety of the city if the undernourishment of the population continued, and if the homes, as is at present the case, procure insufficient coal for kitchen purposes.
There is practically nothing new in the situation as outlined. The population continues underfed as it has been for weeks. The supply of food is never sufficient for any length of time. The prices paid are necessarily excessive because long contracts cannot be made, and the resources of the country are through this method of purchase, generally inefficient, rapidly being dissipated.
The peculiar point in the conference that should be emphasized is that the real head of the Austrian Republic should think it necessary to appeal to the heads of the Missions as a body in the form that he had so often appealed to each individual commissioner; that the Government is nervous and overwrought has been apparent, and the apprehension for the future is at this moment graver than at any time before. An additional point is the request for an immediate credit by the Allies and the United States in foreign banks, the sum not mentioned, to enable Austria to procure food, coal and raw materials up to June, which credit is to be based upon such assets as the personal and real property of the former dynasty including art treasures, State railways, concessions for water power, etc. It was emphasized that this [Page 600] credit ought to be granted before the exact list of securities was indicated.
Before the closing of the conference, the State Chancellor declared that there was another danger (Gefahr) that confronted the Austrian Republic, and that was the activity of the Swiss Federal Council in favor of the union of the Austrian province of Vorarlberg with Switzerland, which, if it were to be consummated, would mean that Tyrol, Salzburg and other provinces would separate themselves from Austria. This would mean of necessity that Austria could not carry out the engagements she made in the Treaty of St. Germain, which, with suitable credits, she thought she would be able to carry out.
In order that the matter might be presented personally to the Supreme Council, it was requested that permission be granted for the State Chancellor, the Finance Minister and other secretaries of State, to go to Paris between the 10th and 15th of December, and there present the case of Austria.
I have [etc.]