740.00119 Control (Austria)/12–848: Telegram
The Acting Secretary of State to the Legation in Austria
922. Note from Aus Leg Nov 301 re effects of occupation costs established by AC resolution 14 May 1948. Aus Govt not able make payments for 1948 amounting 448 million schillings mil occupation 220.9 civilian occupation. Payment would involve new taxes or injurious financial measures endangering economic progress to date. Since no improvement in financial situation in sight inclusion occupation costs in 1949 budget appears impossible. Note states unanimous decision by AC on 1949 would be evidence fact that four powers consider Aus responsible for occupation and make necessary great financial sacrifices. Aus Govt requests US vote against imposition of occupation costs for 1949 as incompatible with Allied policy. Hope expressed High Commissioner would present this view in discussions with other commanders and prevent any unanimous agreement on this subject. Aus Govt requests immediate reply since Parliament at present considering budget.
No reply will be made by Dept until recommendations are received from you and Army, particularly in light following questions. Is action proposed by Aus Govt desirable at this time in view effort maintain quadripartite organization in Aus and to obtain quadripartite agreement on Treaty? Will occupation costs 1949 impose burden endangering [Page 1445] present rate economic progress? Can agreement be reached with Brit and Fr High Commissioners on joint favorable action this matter? Have Sovs collected occupation costs for this year?
Dept would appreciate receiving recommendations soonest.
- Not printed.↩