763.0221/11–2651
The United States High Commissioner for Austria ( Donnelly) to the Deputy Director of the Office of Western European Affairs ( Williamson)
Dear Francis: I telegraphed the Department on November 23rd following a meeting of the four High Commissioners on the increase in occupation costs for 1951.1 They agreed upon a figure of 11,000,000 schillings for each element, which was made subject by the British High Commissioner to the approval of the British Foreign Office.
Red Dowling had met with the Deputy High Commissioners earlier in the week, the result of which was the Soviets held off for 17 millions, the British 15 millions, the French 12 millions, and we indicated we might go to 10,000,000 schillings.2 At the meeting of the HC’s the other three High Commissioners maintained their positions until the French suggested a compromise. My position during the meeting was to deny the Soviets as much money as possible without prejudicing the British and French. The outcome of the meeting was that we agreed upon the figure of 11,000,000 schillings. [Page 1080] The British were visibly disappointed, having expected a figure of not less than 12,000,000. The French, I believe, would have accepted less than 11,000,000 but it was quite obvious that the British would not go below this figure, and to prevent a sharp disagreement I finally compromised on 11,000,000 which the Soviets accepted, but only after the British and French talked to them aside. Throughout the meeting the Soviets indicated they would accept whatever figure was agreeable to the British. Following the meeting the Soviet High Commissioner commented to our interpreter that “it makes very little difference because the Austrian Government will have to pay the light, gas and other bills of public utilities”. He may have meant by this that they had ways and means of obtaining the 15 or 17,000,000 schillings regardless of the decision taken at the meeting.
At the end of the meeting the British High Commissioner suggested to me that we meet following the next AC meeting on November 30th to discuss occupation costs for 1952. I reminded him of the prior agreement with the British and French that we would first consult the military commanders of our forces in Austria so as to find out how they could cooperate with us in meeting 1952 costs without giving additional funds to the Soviets. He agreed and the meeting with the military will take place on November 30th following the AC meeting.
The British continue to be very stubborn in the matter of occupation costs.
Sincerely yours,