Foreign Relations of the United States, 1947, Council of Foreign Ministers; Germany and Austria, Volume II

863.51/12–1347: Telegram

The Chargé in Austria (Yost) to the Secretary of State

secret

Vienna, December 13, 1947—2 p.m.

1278. Soviet pressure on Austrian Government initiated or developed during last fortnight add up to impressive list. Following are most important:

1. Delay in approval of currency law resulting in Austro-Soviet side agreement.

2. Extension of controls on movement of goods in and out of Soviet zone.

3. Demand that 75 locomotives be turned over immediately to Yugoslavs.

4. Proposal to sell to Austrians for 400,000,000 schillings large quantity of rolling stock of various origins seized by Soviets as war booty.

5. Announced intention to raise prices of petroleum products 150%.

6. Demand presented to Interior Minister Helmer for replacement of Liberda, Director of Public Safety for Lower Austria, by Duermayer.⁷¹

7. Kidnapping of Katscher, official of Austrian railways.

8. Arrest of Klor, official of lower Austrian Labor Office.

Present status of issues listed above is as follows: No. 1. is successfully completed; No. 2. is being negotiated between Soviets and Austrians; No. 3. was brought before AC December 12 without apparent result; No. 4. is being brought before economic directorate of AC in near future; No. 5. has been withdrawn and No. 6. has not yet been further pressed; there are no developments on Nos. 7. and 8.

In spite of quantity of pressures initiated during brief period it is not yet possible to state that they represent any new departure in Soviet policy. Nevertheless accumulation of such acts, even though they may not be consciously coordinated, at moment when CFM is still in session would certainly appear to indicate that Soviets do not contemplate any relaxation of their duties in Austria. On other hand failure of Soviets to take advantage of favorable opportunity offered by currency conversion law to promote either definite economic split or widespread economic confusion would seem to forecast policy of steady and cumulative but indecisive pressure rather than any drastic step which might result in breakdown of control agreement or of Austrian Government’s authority over whole country.

USFA concurs.

State please pass to Army.

Sent Department 1278, repeated USDel CFM London 124.

Yost

71. Telegram 1235, December 4, 1947, from Vienna, not printed, reported that Austrian Minister of Interior Helmer had a call from a Soviet officer representing General Zheltov. The Soviet officer demanded the removal of the Director of Public Safety in Lower Austria and his replacement by Heinrich Duermayer, former Communist Chief of the Vienna State (Secret) Police until his removal by Austrian authorities in September 1947. Helmer had informed the Soviet officer that he would never appoint Duermayer to the position (740.00119 Control (Austria)/12–447).