763.00/9–452
No. 816
Memorandum of Conversation, by
Joe B. Cox of the Embassy in
Austria
Participants:
- Ambassador Thompson
- Chancellor Figl
- Mr. Dowling
- Mr. Cox
The conversation occurred at the Federal Chancellery on the occasion of the Ambassador’s initial visit.1
After an exchange of amenities, a review by the Chancellor of the excellent past relations between the Austrian Government and the U.S. High Commissioner, mutual assurances of the desire to perpetuate this fine tradition, delivery of the greetings of the President and Mr. Acheson, etc., the Ambassador spoke of the great interest in and understanding of Austrian problems that he had encountered during his consultations in Washington. This interest, he felt, stemmed in part from the American admiration for the courage Austria has shown in resisting encroachments. The Chancellor reviewed his recent trip to America,2 his reception there as Chancellor of a sovereign state, the real interest shown in Austrian problems by members of Congress and the Administration, and the renewed encouragement which he derived from his American visit.
The one point of current interest raised by the Chancellor pertained to the Austrian Government’s desire to initiate negotiations for a commercial treaty with Russia. The Government hoped to take a step in this direction on the next day (September 5) and was anxiously awaiting news of Washington’s reply to the Embassy’s recent inquiry in this matter. The Vienna Fall Fair, at which the [Page 1780] Soviets would have an impressive display in their new permanent pavillion, would begin on Sunday, September 7, the Chancellor pointed out. It was urgent that the Government take steps to initiate negotiations on a commercial treaty with the Soviets before businessmen and public opinion forced them to do so. Once begun, the negotiations with the Soviets would be drawn out (as negotiations with the Soviets always are) and there would be ample time to arrange any conditions, restrictions, etc., desired. Any agitation from Austrian business or the Austrian public for trade with the Soviet Union to combat unemployment and poor turnovers could then be effectively countered by the Government.
The Ambassador stated that he would seek to obtain the American viewpoint as quickly as possible.
The Ambassador stated that he hoped the Chancellor would not mind if, in the interests of establishing a relationship based on frankness and directness, he were to bring up a matter which normally would not be broached during a formal visit and which he had no instructions to discuss. The Ambassador thought that the Government might on occasion derive some benefit from the frank presentation of his personal observations and impressions. (The Chancellor stated that such a relationship had always existed between the American High Commissioner and himself and that he hoped Ambassador Thompson would perpetuate this tradition.) The Ambassador then made reference to the legislation passed recently by the Austrian Parliament pertaining to indemnification of Nazi victims and restitution as well as to the problem of heirless Jewish property. He thought it would greatly benefit the Austrian Government to resolve differences in these matters as quickly as possible. Prior to coming to Austria he had been approached by representatives of Jewish groups in America. He felt that by receiving a representative of Jewish interests and reaching a settlement with them, the Government could comparatively easily avoid what might otherwise become a very unfortunate situation. Only a relatively small sum was involved. The first figure named by the Jewish representatives would of course be higher than they expected to get, but, having talked with them, the Ambassador was sure that they sincerely desired, and were anxious to obtain, a reasonable settlement.
The Chancellor pointed out that the Allied Commission had recently disapproved the Reacquisition Law and, while approving laws indemnifying prisoners of the Nazis and compensating civil servants whose promotions were blocked by the Nazis, had sent the Austrian Government a letter terming the compensation of Nazi victims inadequate, calling for the extension of such measures to include all Nazi victims irrespective of their present nationality, [Page 1781] and inviting the Austrian Government to correct these deficiencies within six months. The original legislation had been initiated by Parliament, not by the Government. However, the Chancellor had given instructions for appropriate draft legislation containing the corrective provisions called for by the AC to be drawn up. It was not yet decided whether this draft legislation would be introduced into Parliament as a Government bill (bills?) or as a proposal originating in the Lower House. At any rate, Parliament would convene in October, and the Chancellor was sure that the desired legislation would be passed by some time in November. As for consultation with representatives of Jewish interests, the Chancellor had already made this proposal in the Cabinet once. He proposed to advance it again at the next Cabinet meeting and had every reason to believe that this time it would be accepted.