Memorandum by the Chairman of the State-War-Navy Coordinating Committee (Hilldring) for the Secretary of State

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Subject: Relief and Rehabilitation in Austria After UNRRA Program.

At its 52nd Meeting on 22 January 1947 the State-War-Navy Coordinating Committee after further amending approved SWNCC 324/2, as amended by SWNCC 324/3.1a A copy of the revised approved paper is forwarded herewith.

In approving this paper the State-War-Navy Coordinating Committee agreed that:

The Joint Chiefs of Staff should dispatch the draft cable in Appendix “A” to the Commanding General, U.S. Forces, Austria.2
The Department of State should approach the interested Allied Governments on diplomatic level to ascertain their views with respect to concerted action with regard to the general post-UNRRA situation in Austria, the Soviet position on German assets, and related programs.
The Department of State should support and pursue approval of an Export-Import Bank credit for Austria. (Such credit would not be used for relief purposes.)
The Department of State should take the necessary steps to obtain Congressional approval of financial assistance for Austria to the extent of the American share of the estimated balance-of-payments deficit in 1947.
The administration of all U.S. credits and grants should be subject to the appropriate American authority in Austria.
The War Department should assume, until 30 June 1947, responsibility for supplying relief imports not to exceed $15,000,000 in value financed from present Civil Affairs appropriations to be replaced from a War Department deficiency appropriation, in addition to g below, to the Commanding General, USFA, based on requirements of the U.S. Zone, Austria, for the prevention of starvation and unrest after termination of the UNRRA program in Austria or until steps are taken to enable the Austrian Government to finance its own basic relief needs from loans or otherwise, whichever may be the earlier.
UNRRA should make available to the War Department supplies valued at $7,500,000 to be used for relief in Austria.
In view of the great importance attached to the treatment of Austria as a unit wherever feasible, the United States Government should authorize the Commanding General, USFA to take such appropriate action, including the pooling or exchanging of supplies which, in his judgment, will elicit comparable contribution from other occupying powers or will further the achievement of American policy objectives in Austria.

It is requested that the State Department take such action as may be necessary to implement the foregoing decisions.

For the State-War-Navy Coordinating Committee:

J. H. Hilldring
  1. The State-War-Navy Coordinating Committee paper under reference, not printed, consisted of a report by the State-War-Navy Coordinating Subcommittee for Europe regarding the problem of relief and rehabilitation in Austria after the UNRRA program had ended together with certain ancillary papers. The recommendations set forth in the revised SWNCC paper are those repeated in this memorandum.
  2. The draft cable under reference was a restatement of the recommendations set forth in paragraphs b through h of this memorandum.