840.50 UNRRA/12–1245: Telegram

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

561. RefDepts 315 of Nov 29. Schaaf has discussed Austrian UNRRA program with us and with Economic Directorate of Allied Commission. Since regular UNRRA program cannot be put in operation before March 1 at earliest, the most urgent problem at present is to secure emergency aid starting before then, if possible January 1, in largest possible amounts. There appears to be no chance of such emergency aid in amounts large enough to raise Austrian nutritional standards to levels set at UNRRA council meeting in London. Best that can be hoped for is that Soviet and French zones can be brought up to level of 1550 calories for normal consumers which obtains in Vienna and in US and UK zones at present.

Following is text of telegram approved Monday by Allied Council and sent to UNRRA yesterday:

  • “1. With reference to resolution 74 of UNRRA council and since UNRRA has complied with request for a delegation of technicians to be sent to Austria the AC officially invites UNRRA to provide urgent assistance for Austria, which faces serious situation in view of shortage of food and vital necessities.
  • 2. The importance and urgency of the assistance requested from UNRRA will be set forth in another telegram.
  • 3. In view of General Clark’s statement concerning a telegram received from the Director General of UNRRA the Allied Council expresses appreciation to UNRRA for the efforts already begun to secure as soon as possible an effective food supply for Austria.”

Any assistance which Dept can bring to bear to expedite emergency UNRRA aid will be appreciated.

[Page 682]

Following are comments on indicated paragraphs of Dept’s 315:

(1)
Standards referred to here are understood to be 2650 calories for normal consumers. Please advise if this is incorrect.
(2)
US and UK representatives in Allied Commission have made every effort to secure quadripartite agreement on this principle but without success. Soviets insist they are under no obligation as result of Foreign Minister’s discussions in London, to import food for establishment of 1550 calories level in their zone Austria. (They recognize a definite obligation, assumed in Allied Council, to provide that level in their districits of Vienna and are in general fulfilling it but they are believed to be taking some food supplies from lower Austria for this purpose.) They argue that food conditions in Russia are extremely bad and that charity begins at home. They also argue that there are no food surpluses in Hungary or Rumania. French representatives recognize moral obligation to try to provide 1550 calories in their zone but warn that they will probably not be successful.
(2)
Use of term “occupation period” in this paragraph seems inappropriate since it is hoped that UNRRA can assume all or major part of supply burden many months before the Allied military forces are withdrawn from Austria.
(3)
No comment.
(4)
We concur fully in this paragraph but suggest adding a phrase to indicate that barter deals should be replaced by normal trade as soon as possible.
(5)
Strongly recommend modification of payment procedure outlined in this paragraph. Exportable surpluses in Austria are negligible now and those produced in near future will be needed for barter deals contemplated in paragraph 4. Moreover most exports must go to countries in central and southeastern Europe which are unable to pay in convertible currencies acceptable to US and other occupying powers. Although all efforts will be made to acquire foreign exchange it will be many months before there is enough to equal cumulative cost of relief imports. Making this cost a first charge on foreign exchange pool would amount to confiscation of all convertible foreign exchange. Instead it is suggested that no payment for relief imports be required for the present and that after a suitable period, say after January, 1947, a scheme of payment be worked out which would be compatible with Austria’s financial recovery. Such a scheme might assign percentages of (a) Austria’s convertible foreign exchange and (b) its total foreign exchange, to payment for relief imports. Requirements for debt service on any foreign credits would also be taken into account.
(6)
Indigenous supplies of some types are probably being purchased or requisitioned for use of some of the occupying forces. No food or other essential supplies are being purchased or requisitioned in US zone or, to best of our knowledge, in UK zone. It is believed that some purchasing and requisitioning of food and other essential supplies is taking place in French zone. Soviets assert definitely that no Austrian food or essential supplies are being requisitioned or purchased for use of their forces. We understand that Soviet formations are now under explicit orders not to requisition local food supplies. The best available intelligence reports indicate that at present [Page 683] the larger units are not requisitioning but that any small units are requisitioning freely. Regarding seizure of ex-German property on reparations account Dept is aware that Soviet interpretation of Potsdam Agreements is different from our own.

RefDepts 333, Dec. 6.52

This tentative proposed UNRRA program for Austria is being discussed with UNRRA technical mission by appropriate divisions of Allied Commission.

General Clark concurs in this message and asks that a copy be sent to War Dept.53

Erhardt
  1. Not printed; it gave a detailed statistical summary of the program for Austria proposed by UNRRA authorities in Washington (840.50 UNRRA/12–645).
  2. In telegram 367, December 17, to Vienna, the Department advised that it was considering Mr. Erhardt’s observations, and that it would support the Allied: Council’s request for emergency relief supplies from UNRRA (840.50 UNRRA/12–1745).