840.50 UNRRA/11–2945: Telegram

The Secretary of State to the United States Political Adviser for Austrian Affairs (Erhardt)

315. UNRRA Washington has advised Dept that UNRRA Mission headed by Schaaf, D.D.29 left for Vienna last week to discuss UNRRA program for all Austria.

Informal discussion now in progress between Dept and British indicates divergence views as to manner and extent to which UNRRA should take over relief and rehabilitation program in Austria though both agreed that some form of UNRRA program desirable for Austria. For your info and guidance, therefore, following is summary of Dept’s policy in this respect. Full text will be sent you when final draft completed.

1.
The Austrian Government, UNRRA and the ACA (Allied Commission Austria as a whole) should jointly work out import program sufficient to provide Austria with relief and rehabilitation supplies at standards approved by UNRRA Council resolutions for guidance in drawing up such programs.
2.
Since, in view world-wide needs, UNRRA funds will probably not be sufficient to achieve even such minimum approved program for Austria, the occupying powers should agree in Allied Council that each at least will be responsible during period military occupation for procuring and financing civilian relief supplies for its own zone sufficient to attain ration standard (1550 calories per day) approved by Council Foreign Ministers Sept 29, 1945.30
3.
UNRRA should assume responsibility to extent its funds will permit for supplemental relief and rehabilitation imports.
4.
Austrian Government should be permitted to make approved barter deals for needed supplies.
5.
The ACA should reach agreement with Austrian Government that proceeds all Austrian exports (with certain exceptions such as those resulting from any ExImBank loan) to be pooled under control ACA; and the contributions made by each occupying power as provided in two above, as well as their respective contributions (including that of Canada) made prior to consummation this arrangement, should be repaid out of such proceeds. Any balances remaining [Page 668] should be made available to Austrian Government for purposes approved by ACA. No payments out of such proceeds should be required as repayment to occupying powers for imports for use occupying forces or of cost of troop pay not expended in Austria.
6.
In order not to increase requirements Austria for external assistance, occupying powers should undertake to abstain from requisitioning or purchasing for use own forces Austrian indigenous supplies needed by civilians; and from claiming as part of German reparations, German property in Austria necessary for rehabilitating sound Austrian economy.

Your comments and suggestions would be appreciated. You may wish to discuss above informally and on tentative basis with UNRRA mission.

Byrnes
  1. C. Hart Schaaf, Assistant Deputy Director, Department of Supply.
  2. See telegram 10181, October 1, from London, p. 620.