840.50 Recovery/3–2448: Telegram
The Minister in Austria ( Erhardt ) to the Secretary of State
365. Giesl has informed Austrian Government that there is no immediate prospect of action on Eximbank applications listed Legtel 279, March 51 or on any other Austrian Eximbank application except for cotton loan. We would appreciate being informed whether Giesl’s understanding is correct and, if so, whether reason for this decision is imminence of enactment of ERP.2
Austrian Government considers that unless funds for these projects will be provided promptly under ERP granting of Eximbank application is of vital importance to rehabilitation of Austrian industry and to success of export program envisaged under ERP estimates. Legation concurs fully with this judgment insofar as projects referred to in paragraph four Legtel 279 are concerned and hopes approval may be given at earliest possible time.
We should also appreciate being informed whether as matter of general policy future Eximbank loans to Austria and other ERP [Page 1388] countries will be considered as part of funds authorized under ERP or whether Eximbank loans supplementary to ERP authorizations will be granted in deserving cases. Austrians, of course, urge strongly that latter policy be followed in their case particularly since ERP estimate so far available here provide far less-for industrial rehabilitation than is felt to be urgently necessary.