663.001/10–251: Telegram
The United States High Commissioner for Austria ( Donnelly) to the Acting Secretary of State 1
1207. Part II. Leg comments on abbreviated Aust Treaty: Substitution new Article 6 for previous Article 35.
In analysis Sov reaction to proposed replacement of Art 35 by new Art 6, Leg expects Sov to echo Western protests on Sov amendment to Art 9 that reconsideration of already agreed articles inadmissible. Sov will probably also charge violation of Potsdam Agreement. These protests can be discounted as propaganda rather than real concern for further delay if Sovs turn down opportunity to conclude old text or abbreviated text with Art 35 included. On propaganda basis, every advantage to be derived from new Art 6 which will receive unanimous approval of Aust population and isolate Sov as only power still seeking spoils at Aust expense.
Analysis of postwar Sov economic benefits from occupation would include industrial removals, war booty, production exported without benefit to Aust economy, operational profits, and occupation costs. Doubtful that definitive figures can be produced, but estimates from earlier studies being revised on basis latest Aust Govt info. Value of industrial removals in Sov Zone has been variously estimated at $100 to $200 mil; more precise study of early Sov removals from Brit and US Zones alone, places their value at $92 million. Total occupation costs recd by Sov to date 2,358.4 million schillings in addition to 400 million schillings recd on “Soviet loan” settlement at time of 1947 currency conversion. It shld be noted that Aust Govt suffered tax losses on USIA operations estimated by Ministry of Finance at more than half billion schillings 1946 thru 1950, plus Sov exploitation of Brit and Amer oil companies by extracting rebates. Supporting papers these points will be despatched this week.
- Repeated to London, Paris, Moscow, and Frankfurt.↩