763.0221/11–2051: Telegram
The United States Delegation at the Tripartite Foreign Ministers Meeting to the Acting Secretary of State 1
3013. On occasion his conversation with Secretary2 yesterday (Embtel 3001, Nov 203), Gruber4 also brought up question of occupation costs. He emphasized importance from point of view Austrian Parliament and public opinion of arriving at situation where Western Powers will clearly have “protecting forces” in Austria, as distinguished from Soviet occupation forces. Gruber emphasized in this connection efforts which Austria is making to cooperate with Western allies in their function of protection.
Secretary remarked that question extremely difficult in view Brit and French financial crises.
Gruber then said that if Brit and Fr wld renounce occupation costs and follow pattern set by US, Austrians cld give them “about the same amount” under the table, if the US were agreeable. For instance, Austrians cld build housing for Brit and Fr Forces and “rent it to them free of charge.” Morally, he said, Austria wld gain by such operations which wld isolate Soviets and permit quadripartite action in Allied Council to reduce their occupation costs.
Secretary inquired whether Gruber perceived danger to quadripartite mechanism in Austria from such procedure. He said US wld wish to give further study to his proposal.
Perkins remarked that US Senate has in past shown great interest in whether Brit and Fr have financial benefits in Germany that do not extend to U.S. If situation were to exist in Austria where all three Western Powers had renounced occupation costs, but two of them were receiving benefits that wld not extend to US, incongruousness of such situation might well attract congressional criticism.