763.00/9–452
No. 817
Memorandum of Conversation, by
Joe B. Cox of the Embassy in
Austria
Participants:
- Ambassador Thompson
- Vice Chancellor Schaerf
- Mr. Dowling
- Mr. Cox
The occasion of the conversation was the Ambassador’s initial visit which followed immediately his initial visit to the Chancellor.1
After a complimentary exchange paralleling that with the Chancellor, the Ambassador expressed the hope that a sincere, frank and fruitful relationship could be established.
The Vice Chancellor, speaking for himself and his party, assured the Ambassador of full support and cooperation. He linked the political situation in present day Austria to that in the Roman Republic. It was characterized by two large parties of almost equal strength, corresponding to the two Roman consuls, each of whom could do only that which his partner did not prevent him from doing. While this “remarkable regime” might sometimes be difficult to understand, the coalition was the only possible arrangement under present conditions. Though this situation might hinder [Page 1782] action desired by the Americans, and while there might sometimes be differences of opinion, the Vice Chancellor assured the Ambassador that American advice and comments would always be received with good will.
The Ambassador then raised the question of the legislation favoring Nazi victims and that of the heirless Jewish property, stating as in the earlier conversation with the Chancellor that he had no instructions to intervene in these matters but that he felt that the Austrian Government might benefit from the impressions he had gained recently in America: namely, that there was a great interest in and understanding for Austrian problems in Washington growing in part out of admiration for the courage shown by the Austrian people; that the only thing presently clouding this sympathy was the differences over indemnification of Nazi victims and the unsettled question of the disposition of heirless Jewish property; that, particularly in view of the readiness of the Jewish representatives to reach a reasonable settlement involving a comparatively small sum, it would be a great pity if Austria did not avail herself of the opportunity to dispose of the entire problem quickly.
The Vice Chancellor reviewed the brief history of the laws passed in July, pointing out that they owed their passage primarily to political considerations. Since July all political activity has transpired in a pre-election atmosphere. The initiation and passage of the legislation in question resulted from a pre-election nervousness. Proof of this lay in the fact that just two days before these laws were passed in Parliament the two big parties agreed not to pass them. Though he is Chairman of the Socialist Party and head of the Socialist faction in Parliament, the Vice Chancellor cannot always control sentiment in the Socialist faction by reason of the fact that he is not always there. These laws were not passed with an eye to the 40,000 persons affected by them but with an eye on 400,000 votes. While the Socialist Party cannot expect to attract many of these particular votes, nonetheless it cannot remain behind by a pace, or even a nose, in the competition for them.
As for the heirless Jewish property, the Vice Chancellor said that his party had been in contact with Jewish groups on this matter. A very great obstacle stands in the way, however. A very large part of this property falls in the category of “German assets” under the Potsdam Agreements and cannot be disposed of until the question of German assets in Austria is finally clarified.