863.5151/5–1348: Telegram

The Secretary of State to the Legation in Austria

us urgent

434. Eximbank credit agreement Sept 11, ’47, providing for financing of approved chemical raw materials and capital goods, stipulates beneficiary firms must be submitted Eximbank’s prior approval. Creditanstalt submitted list such firms, following four firms being located Sov Zone:

A.G. der Voeslauer KammgarnFabrik, Bad Voeslau—b/Wien; 78% Aus, 11% US, 11% Brit ownership; Bleaching, dyeing and printing of cotton and wool fabrics: Credit of $100,000 ($86,000 for dyes, $14,000 miscellaneous chemicals).
Guntramsdorfer Druckfabrik A.G. Wien XXIV, Guntrams-dorf; textile firm, bleaching, dyeing and printing of cotton, cellulose, semi-artificial and all-silk fabrics; Aus ownership; credit of $70,000 for dyes.
AGA Sauerstoffwerke A.G. Wien, Main plant Schwechat, Sov Zone, other factories Florisdorf, Peggau, Asten, Innsbruck, Obereggendorf, Poitschach, Salzburg; Aus Corp with Swedish participation founded 1916; credit of $30,000 for miscellaneous chemicals plus $15,000 for capital equipment.
Rich. Klinger A.G., Gumpoldskirchen; rubber factory, Aus owner; credit of $75,000 for general chemicals plus $10,000 for chemical production equipment. Since export licenses already granted Eximbank authorized issuance letters of credit for $53,000 for materials, leaving balance $22,000 for materials and $10,000 for equipment to be approved.

Depts position, communicated Eximbank, that it is undesirable completely exclude plants located Sov Zone from participating in [Page 1399] limited Eximbank credits, Understood by all concerned since Sept ‘47 that small fraction chemical credits would go to Sov Zone plants. In view above and limited amounts involved (of which only $25,000 for capital equipment) Dept not inclined interpose objection above credits. However in view export license screening for Aus (Deptel 429 May 111) Dept urgent requests AmLegation’s comments re specific firms and materials above, esp from security standpoint. Since Eximbank holding up several letter-of-credit requests pending Depts opinion your comments required by May 17 latest.

Similar comments desired re Semperit Gummiwerke A.G. in Sov Zone. Eximbank previously approved credit of $625,000 for chemicals etc for manufacturing rubber goods. Aus now request allotting Semperit additional $575,000 for above purposes plus $173,152 for cord production machinery to be used in manufacturing tires. More than 50% already advanced against purchase this machinery by Aus. Eximbank informed that export licenses have been secured. Eximbank refers to AmLegation’s report 29, Mar 10,2 as suggesting additional machinery and equipment be delivered to Sov Zone plants in limited amounts. Aus advise Eximbank that cord production machinery urgently required to replace machinery borrowed from Italy (Pirelli) and since removed. Apparently questionable whether additional raw materials can be effectively utilized unless above machinery is replaced. Your comments above needed by May 17.

  1. Ante, p. 1396.
  2. Not found in Department files.