Foreign Relations of the United States, Diplomatic Papers, 1945, European Advisory Commission, Austria, Germany, Volume III

863.24/10–545

The Secretary of War (Patterson) to the Secretary of State

Washington, October 5, 1945.

Dear Mr. Secretary: Estimates indicate that it will be necessary to import, annually, to Austria 761,000 tons of subsistence supplies and 1,800,000 tons of coal. These tonnages provide a minimum standard of living and do not include imports of supplies other than coal and food, which may be required at a later date to further the objectives of the occupation. Since the United States is the residual world supplier of these commodities, imports will have a direct effect upon the United States economy.

The supply problem in Austria differs from that in Germany, in that there does not appear to be any hope that supply requirements will decrease in the future nor that the Austrian Government shall at any time in the future be able to reimburse the United States for the cost of these imports. The pre-war economy of Austria was insufficient to provide for the needs of its people. This insufficiency is now exaggerated by restrictions to the free exchange of goods within Austria resulting from the zoning of responsibilities by the occupying powers, and by barriers to trade existing between Austria and other Central European and Balkan countries. Normally these latter areas exported substantial quantities of food to Austria.

The War Department, through negotiations by its military representatives in Austria, is exerting every effort to reestablish a free exchange of foodstuffs and other commodities within Austria. The Allied Council for Austria held its first meeting on 14 September 1945. It is hoped that a Quadripartite Resources Board can be established soon. However, the British Government has been reluctant to participate in any quadripartite organization in Austria until consideration has been given to the supply of Austria as a whole, particularly the utilization of the countries of the Danube Basin as a primary source of supply. The Russian Government opposes this view, and has proposed unilateral responsibility for the separate occupied zones of Austria itself.

In view of the close interdependence between civilian supply for Austria and the complex trade problems existing in Central Europe, the War Department does not feel that it can adequately protect the interests of the United States Government without resorting to negotiation on the governmental level. It is, therefore, recommended that appropriate steps be taken through the State Department to negotiate or otherwise arrange such agreements as are necessary to insure the maximum utilization of Central European resources to reduce the import requirements from the United States to Austria.³⁷

Sincerely yours,

Robert P. Patterson

37. Secretary Byrnes, in a reply of November 19, informed the Secretary of War that the Department had made inquiries among the various eastern and central European Governments as to the availability of supplies. He also indicated the Department’s readiness to negotiate if negotiation should prove possible. (863.24/10–1545)