740.00119 Control (Austria)/3–2346: Telegram

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

secret

423. Inform War Dept. Executive Committee meetings this week brought out following indications of Soviet policy in Austria.

Soviet member refused to discuss proposals by other three to establish procedure for Austrian budgeting of occupation costs, taking position maintained consistently heretofore that occupation costs and expenditures of military forces are matters solely within competence of governments of four powers and not of Austrian Government or Allied Council.

He also refused to make any commitment re distribution of oil and gasoline from Soviet held Zistersdorf sources to other zones of Austria, and criticized as an “ultimatum” UNRRA representative’s letter March 1871 informing AC that Director General UNRRA had instructed him not to sign UNRRA-Austrian agreement until receipt of definite assurances that oil and gasoline needed for relief program will be provided from resources other than UNRRA. Soviet member agreed refer this question to Economic Directorate for discussion but held UNRRA agreement should be signed without awaiting outcome of oil discussion.

They held it unreasonable to make signature of UNRRA agreement dependent on a decision which concerns only the commanders, remarking that UNRRA should put up additional funds to buy fuel abroad for Austria rather than make demands upon AC for oil products to ensure distribution UNRRA supplies.

Russians refused to approve Austrian law regarding export import controls unless it were amended to provide that it apply “neither to enterprises and firms controlled by Allied forces nor to concerns in which Allied countries or nationals have any interest”. This is first indication that Russians did not intend to subject to Austrian law those enterprises which become Soviet state property under Potsdam Agreement.

Soviet element consistently refuses in Executive Committee discussions to approve the temporary draft constitution now submitted by Austrian Government on ground that Austrians should be ordered to submit for approval a permanent constitution and meanwhile it would be confusing and undesirable to approve an interim constitution, in [Page 323] spite of fact that formulation of latter was earlier requested by Allied Council. This is on agenda for AC meeting 25 March.

Russians argue against acceptance of Indian and Australian Missions on ground EAC agreement limits Missions to United Nations “chiefly interested”.

They refuse to authorize Austrian Government to accept invitation to send representative to April 3 EECE meeting London, taking position that situation of Austria in international political affairs is not yet ripe for Austrian participation in international conferences.

Sent Dept. as 423, repeated Moscow as 22 and London as 41.

Erhardt
  1. Not printed.