No. 479

763.0221/2–2151: Telegram

The United States High Commissioner for Austria ( Donnelly) to the Secretary of State 1


1813. High Commissioners agreed today on occupation costs as follows: 137 million schillings per element for 1949; 125 million for 1950; and 140 million for 1951. Escalator clause (Deptel 1639 February 202) was dropped, although British and French insisted on pointing out for record that any element naturally had right under AC procedures to raise issue at any future time should they so desire. Agreement also reached on limitation that of occupation costs for 1951, not more than 40 million schillings per element could be drawn in cash, although Soviets argued strenuously against any such restriction.

[Page 1026]

Agreement provides that balance of 1949 and 1950 allocations, after deduction of disbursements already made by Austrian Government, as well as cash for 1951, shall be drawn in equal quarterly installments during current year.

Text of AC resolution being airmailed.3

  1. Repeated to Paris and London.
  2. Not printed.
  3. The minutes of the 141st meeting of the Allied Council and the text of the resolution on occupation costs under reference are in ALCO records, lot 62F9, box 114.