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

740.00119 Control (Austria)/10–2045: Telegram

The Deputy United States Military Commissioner for Austria (Gruenther) to the Joint Chiefs of Staff ⁶⁵

[Paraphrase]

Vienna, October 20, 1945.
[Received October 21—12:01 a.m.]

War Series PV 8372. Ref. PV 8330 and PV 8337.

1. Koniev announced at this afternoon’s meeting of the Allied Council that the Soviet Government approves the extension to the whole of Austria of the authority of the Provisional Austrian Government. To Doctor Renner will be dispatched a memorandum which conforms to the October 1st resolution and a copy of this memorandum will in a later message be sent to you.⁶⁶ Doctor was invited to appear before the Allied Council where he was informed of the action of the four governments.

2. The functions of the government which are to be reserved to the Allied Council Koniev declined to discuss and with instructions to submit recommendations to Allied Council for meeting on 30 October this subject to the Executive Committee was referred.

3. No agreement was reached on the question of currency conversion in Austria though considerable time was spent in discussing it, Koniev maintaining, that portion outlined in our PV 8337, paragraph 2, conversion into Austrian national currency should be made even though it cannot be accomplished before February 1946 at the earliest. This conversion he contended is best for the Austrian people. He would not comment on the fact that immediate conversion into Allied military schillings is favored by all Austrian financial experts and Dr. Renner himself. Emphasizing the serious results to Austrian economy if conversion is delayed until February 1946, French, British and United States members presented arguments in favor of immediate conversion. Referred for study to the Financial Committee was a proposal by Bethouart embodying a compromise measure providing for immediate conversion from reichsmarks into Austrian national currency to the extent that the supply of that currency will permit about 2 billion schillings to be supplemented by Allied Military schillings.

[Gruenther]

65. This telegram was also sent for information to General Clark, who was in Washington temporarily.
66. Text of the October 20 memorandum to Dr. Renner was sent to the Joint Chiefs of Staff in telegram PV–8396, October 21, from Vienna, repeated to the Department and General Clark. The text, which conforms closely to the Allied Council recommendation of October 1 reported in telegram PV–7841, p. 619, is printed in the Gazette of the Allied Commission for Austria, No. 1, December 1945–January 1946, p. 29.