462.00R29/136: Telegram
The Secretary of State to the Ambassador in France (Wallace)
665. For Bathbone from Davis. Treasury R-314.
Your 457,23 45922 and 464.24 1. It does not appear important for us to raise any point as to the conclusion of the Allies as to whether any action may be taken pursuant to Austrian Treaty, although not yet ratified.
2. With reference to the letter to the Austrian Government set out in your 402,25 I do not quite understand why the Austrian Government [Page 277] should be forced to acquire all securities held by their nationals in neutral countries. If this precedent is followed is it not an undue interference with the rights of private property and an extension to Austria of the interpretation which the Allies wish to give to Article 235 of the German Treaty to which we are opposed?
3. The proposed plan outlined in paragraph 2, your 464 defining the conditions under which relief advances will be made to Austria are satisfactory with the following exceptions: (a) We do not think it advisable to impose upon Austria the condition that she shall pass such laws as the Austrian Section may propose in respect to the sale or disposition of privately owned property, provided this should violate the principle indicated in the above paragraph, (b) In respect to the proposed supervision and control over the collection and expenditure of taxes, customs and revenues of the Austrian Government, we consider this a rather dangerous provision. The direction of such service should be advisory and should not be taken over except in the case that Austria wilfully fails to comply with the other loan provisions and to administer this service economically and properly. (c) As to the study and submission of plan for the economic and financial rehabilitation of Austria, we understand that this will not imply any obligation, even moral, on our part for financial assistance other than that already provided for.