Department of the Army Files: Telegram
The United States Military Commissioner in Austria ( Clark ) to the Joint Chiefs of Staff 59
priority
P–3605. For the past several weeks we have attempted to make progress in the Allied Council in the development of Austria along economic lines. These efforts have been blocked by the veto power of the Soviet element. The most important efforts made include:
- a.
- Clarification of German assets.
- b.
- Breaking down demarcation lines to enable the free exchange of goods without guarantee that Soviets will utilize for own benefit.
- c.
- Reduction of troops in order to relieve Austria of excessive occupation costs.
- d.
- Resumption of inter-state traffic on the Danube with the view of allowing Austria to return to normal supply sources.
No progress whatever has been made on any of these matters since the Allied Council was established. Each time these questions, as well as others which vitally effect the future of Austria, are raised the Soviet element uses every means to block progress.
It is clearly evident to me that Soviet policy is to prevent the establishment of Austria as an economic entity without strong ties to Soviet territory or Soviet controlled areas. While the governments of the [Page 313] three Western powers are attempting to reach agreement on the vital question of German assets, the Soviets are removing many important plants, resources and other economic assets from their zone. In other cases, such as the Zistersdorf Oil fields and the Danube Shipping Company, they are taking over control in such a way that Austria must remain dependent upon Soviet influence for years to come. Whole plants essential to the existence of Austria have been stripped of machinery. Others have been put to work solely on production of items most needed by the Red Army. There are indications that the Red Army is using schillings obtained to pay troops to meet payrolls of civilian personnel operating such plants. Also it is reported (not verified) that Red Army troops are using pay derived from schillings to purchase property.
The Soviets have acquired control of the Danube in Hungary and Rumania by their recent agreements with these countries leading to the establishment of joint shipping interests. The fact that they recently took over the properties of the DDSG in their Zone of Austria, except funds deposited in Vienna banks and the boats and docking facilities in Linz and Passau, indicates their intention to extend this control of the Danube to include Austria. It is pointed out that the Soviets control north bank of the river between Enns and Passau, and have full control of the river in Austria from Enns to the Hungarian border. They can effectively block the River at Enns, which they have done, and we have no way of blocking the river between Enns and Passau. This gives them nominal control of the Danube from Passau through Austria, Hungary and Rumania to its mouth in the Black Sea.
All efforts to date to bring about settlement of traffic on the Danube have been blocked by the Soviets. I am convinced that no progress can be made on this subject as this waterway is too vital to the economic life of the Danubian countries.
Several attempts have been made to seek full relaxation of the demarcation barriers between Zones. The Soviets have consistently taken the position that the removal of demarcation barriers is a matter not within the competence of the Allied Council. Their Zone is blocked so effectively that it is almost impossible to learn what activities are taking place therein. The Soviet element is most reluctant to grant passes for Allied personnel, including correspondents, to visit any place in the Zone, or to pass through the Zone.
The Soviet element has refused to discuss reduction of troops. The Western Allies are fast reducing troop strengths in their respective zones. According to the best intelligence information the Red Army in Austria totals approximately 130,000. My troop strength now is 32,000 and by 1 April will be 12,000. Each time the question of reduction of troops arises Konev justifies the presence of Red Army forces [Page 314] because of the slowness of de-nazification by the Austrian Government and existence of potential military and para-military organizations in Austria, both of which require careful observation by the Soviet element. The result of all this is that the Red Army is remaining strong in Austria and the Western Allies are daily growing weaker through redeployment and reduction of strength. Furthermore, the demands made by the Red Army upon the Austrian Government for schillings to pay troops each month is greater by more than one-fourth the combined total of the three Western Allies. For example, in January the Soviets obtained 243,000,000 schillings as against 55,000,000 obtained by each of the three Western Allies. This places a serious drain upon the economy of the country and gives rise to inflation.
As a further indication that the Soviets intend to maintain substantial forces in Austria, the Red Army has just placed a demand upon the Austrian Government for approximately 60,000 acres of farm land in Lower Austria for use by the Red Army to raise vegetables and other garden produce to feed their troops. Our experts estimate that this acreage is sufficient to feed 80,000 to 100,000 people for one year at 1550 calories. Withdrawal of this land from Austrian economy will indirectly mean that UNRRA will be feeding the Red Army because of the necessity for greater food imports to meet Austrian deficiency due to loss of this farm land.
Because of the strength of the Soviet position in Austria it is daily becoming more evident that the Austrian government recognizes the inability of the Western Allies to cope effectively with this position. Within the past two weeks the Austrian Government has adopted the strategy of submitting a counter proposal to each demand made by the Soviet element. This indicates clearly that the Austrian Government feels it must get along somehow with the Soviets, and that it is too much to expect the Western Allies to cope with the strong Soviet position, other than to voice a protest to demands made which are in conflict with announced policies of the respective Western governments. Prominent Austrians in Vienna realize they are surrounded by Soviet-held territory and there is little hope of economic liberation under such a situation.
At the moment it appears to the average Austrian that the best the Western Allies can do is to supply food and other essential supplies to keep down disease and unrest; that the presence of Western Allied troops serves mainly as a hope that some solution to the future of Austria may develop, although that hope gives no immediate encouragement. There is increasing indication that our press correspondents are becoming impressed with the hopelessness of the position of the Western Allies and are beginning to recognize that the [Page 315] Western Allies are carrying on a program here, which in the face of Soviet policy can only result in gains for the Soviet Government with no great benefit to the Governments of the Western Allies. Sooner or later the press will begin to raise doubts in the minds of the people of our country regarding the lack of benefits if we pursue the type occupational role we have assumed. This question will grow in importance when, and if, UNRRA takes over supply responsibility, since approximately 72% of UNRRA funds are derived from the United States.
While I recognize the responsibility of the United States toward Austria, I am of the opinion that little can be accomplished toward discharging that responsibility until the governments of the four powers adopt a uniform policy in carrying out the avowed intentions. Early satisfactory settlement of the question of Germany assets will do much to aid in the restoration of Austria as an independent, democratic state and to bring real economic hope to the country. The Western Allies are at present blocked by the Soviet veto power in the Allied Council and they can only give lip-service to the Austrian Government on any policy which the Soviets choose to adopt and which is contrary to the policy of the Western Allies. This does not serve to accomplish our mission nor does it increase the prestige of the Western Allies. The economic gains being made by the Soviets can result only in eventual political strangulation if Soviet policy is allowed to continue.
- This telegram was also sent to the Secretary of State.↩