863.00/9–451: Airgram
The Acting Secretary of State to the Legation in Austria 1
A–162. With reference to the use of U.S. information media in Austria to achieve U.S. policy objectives, particularly in the economic field, the Department is considering a change in emphasis and direction, and desires your comments on the following proposal.
Heretofore, as the Department understands, U.S. economic objectives have been publicized from the viewpoint of Austrian progress toward reconstruction and recovery, success under the Marshall Plan, and difficulties caused by Soviet interference and spoliation. U.S. dissatisfaction with Austrian slowness to solve its internal economic problems and to make the most efficient utilization of U.S. aid has been expressed solely through diplomatic channels. At present, however, the economic prospect for Austria is so dark that additional measures are required to convince the Austrian public of: (1) the extreme urgency of the situation; (2) the reasons for decreasing aid; (3) the fields in which Austria itself may take remedial action; (4) the prospect of a lowered standard of living if decisive action is not taken.2 Given the apparent inability of the coalition to face these problems squarely and to keep the Austrian public properly informed, the question arises to what extent U.S. information media can be used to further this program.
The Department is aware how delicate and difficult such a program would be. The central problem is, of course, the inevitable [Page 1063] charge of interfering in Austrian internal affairs. In this connection the Department does not envisage a frontal attack on the coalition or elements in the coalition parties responsible for the majority of archaic or inefficient practices but rather an indirect approach to publicize their nature and cost. For example, the High Commissioner’s veto of the cartel law in the Allied Council provides an excellent opportunity for a series of articles on restrictive business practices. Other possible topics are foreign exchange controls, banking reform, tax evasion, “price-gap” financing and food subsidies, the productivity drive, administrative reform, grain-meat prices, price rises outside the wage-price agreement and high export prices. Also articles comparing Austrian economic practices or conditions to more progressive or advanced economies in other Western European countries may serve to keep this program on an objective plane and to diminish the charge that Austria is being singled out for U.S. attention.
It is believed that the USCOA economic staff and the ECA Mission are in a position to provide sufficient material. It may be necessary to provide a topflight U.S. economic editor to prepare this material for the Kurier and Red-White-Red broadcasts, but initiation of such a program should not be delayed pending a determination of the personnel requirements involved.
Because of the urgency of the problems posed by the Austrian economic situation the Department requests your comments as soon as possible.3
- Drafted by Rutter and cleared with Dawson, Colladay, Williamson, and Towsley of ECA.↩
- An analysis of Austria’s economic condition by the Legation in Austria is in despatch 1039, April 2. (863.00/4–251)↩
- The Legation did not respond to this airgram until December 12 when, in despatch 892, it informed the Department of State that U.S. information officers in both the USCOA and the ECA Mission would attempt to persuade Austrian molders of public opinion to clearly explain the country’s current problems and their rational solutions. In the opinion of the Legation’s information officers, this policy could not be followed indiscriminately because the United States should not singlenandedly institute a broad campaign to eliminate undesirable practices in Austria. (863.10/12–1251)↩