840.50 UNRRA/8–2746: Telegram
The United States Political Adviser for Austria (Erhardt) to the Secretary of State
[Received August 27—6:11 a.m.]
1170. There have been discussions among US, civilian and military personnel, with UNRRA and with British in connection with Dort’s47 visit here. As a result following preliminary conclusions and recommendations have been reached re post UNRRA economic problem. These conclusions shared by General Clark and myself.
Extremely important from standpoint of political and economic stability in Austria that assistance be provided in calendar year 1947 in addition to amount needed to prevent disease and unrest in US zone. Present estimate would indicate minimum need between 125 and 150,000,000 dollars on basis 1550 food ration for normal consumer and [Page 363] reactivation of essential industries. This based on estimated import needs of about 26,000,000 dollars and estimated exports of about 155,000,000. British here appear to be in general agreement on size of deficit and to assume British Government will probably make a contribution if we do.
Any assistance given by US should be on basis direct unilateral arrangement between US and Austrian Government which should include understanding that assistance is intended to be used generally for good of Austria as a whole. US assistance should not be given irrevocably to Austrians but US High Commissioner in Austria should have right to withhold funds at any time if Austrians thru internal political pressure or that of other occupying powers give indication of utilizing assistance or equivalent local resources in an inequitable or improper manner. Believed important that at least part of assistance be available for Austrians to spend in making trade arrangements with their normal sources of supply outside US.
In view of improbability of obtaining funds for such a program, if approved prior to early months of next year it is important that arrangements be made, at least for US zone, to maintain shipment of most essential supplies particularly foodstuffs between termination of UNRRA pipeline and shipments under any broader program. Clark has already requested War Dept to make arrangements for such shipments thru military channels.
Clark is obtaining latest information concerning gasoline deliveries by Soviets and has also suggested to Figl that Austrians formally request Russians to turn over for civilian distribution (?) seized estates which are now being held on the land subject to control Red Army. Unless results are satisfactory finding by UNRRA Central Committee of violation of resolution No. 91 should be pressed. Exact type of sanction to be applied probably should be considered later and in meantime maximum publicity given to Central Committee action. Dort will bring with him more detailed information on requirements and recommendations, returning Washington about September 10.
- Dallas W. Dart, US delegate to the 4th and 5th sessions of UNRRA Council at Atlantic City and Geneva, 1946; chief relief and rehabilitation policy officer in the Office of the Assistant Secretary of State for Economic Affairs.↩