800.515/1212: Telegram
The Secretary of State to the Ambassador in the Soviet Union (Harriman)89
1519. I. The Department was informed by the British Embassy in Washington June 15, 194490 that the Foreign Office has sent a communication to the British Embassy at Moscow along the following lines:
“It seems desirable for both political and practical reasons to introduce a separate currency in Austria to replace the Reichsmark as soon as possible and not to use the Allied Military Mark currency in Austria in view of the decision made at Moscow to establish a free and independent Austria.91
The establishment of a separate currency will help to disentangle the Austrian from the German economic system and will strengthen belief on the part of the Austrian people in the reality of the promise of independence.
A flight from currency into goods and a loss of all confidence in the Reichsmark may be expected in Austria after the defeat of Germany. The task of occupation forces or commissions in Austria may be seriously impeded by the resultant hoarding and economic difficulties. Not only should schillings be used but there should be sufficient supplies to make possible the complete replacement of all Reichsmark notes currently in circulation as soon as this becomes feasible in the light of existing circumstances. It should be possible to hold off currency chaos through the use of schillings at a fixed rate of exchange with mark notes even if complete replacement does not prove to be immediately possible.
The printing of notes in nine denominations is involved in this program. These denominations being 1000, 100, 50, 20, 10, 5, 2, and 1 schillings and 50 groschen. The order involves a total face value of 4678 million schillings and a total of 236 million pieces.
The needs of Soviet forces as well as British and United States forces can be met by the stocks provided under this program.”
II. The British Government in its June 15 note through the British Embassy at Washington expressed the hope that the United States Government would be willing to ask the United States Ambassador at Moscow to make a joint approach to the Soviet Government with the British Ambassador on this matter.92
III. The Department perceives no objection to this proposal and accordingly requests you to act in concert with the British Ambassador at Moscow in advising the Soviet Government along the above lines. You should point out that this proposal is not intended in any way to prejudge decisions concerning the occupation or administration of Austria which may hereafter be made as a result of EAC93 recommendations or otherwise.
- A copy of this telegram was transmitted to London on the same day as telegram 4858.↩
- Note not printed.↩
- See Declaration on Austria, November 1, 1943, Foreign Relations, 1943, vol. i, p. 761.↩
- In a memorandum of June 20 (not printed) the Department informed the British Embassy that this was being done (800.515/6–2044).↩
- European Advisory Commission.↩