763.00/3–253: Telegram
No. 854
The United States High Commissioner
for Austria (Thompson) to the Department of
State
2565. Gruber informed me yesterday of intention People’s Party to attempt bring VDU into coalition. He said right-wing of People’s Party outraged at Socialists’ alleged use of President in calling for early resignation of government which despite President’s denial most People’s Party believe to be true, and they are alarmed at [Page 1843] extent of Socialists’ bid for power as revealed by their asking for separate Ministry of Housing which would give them control of all housing activities in Austria. He advanced many arguments for proposed coalition including statement that this would make it easier for Socialists to agree to sensible economic program and to control their extremists. People’s Party also fear that two-party coalition more apt to break down and result in early further elections with results disruptive to maintenance political stability.
I stated formation of government was purely Austrian affair but I felt obliged to point out what I considered would be unfortunate international effects. Results Austrian election generally interpreted abroad as rejection extremists of both right and left and People’s Party action to bring VDU into government at this stage would weaken Austria’s prestige abroad. Moreover, it would provide Russians with pretext to oppose and perhaps even refuse recognition of new government. Emphasizing that I was speaking purely personally I also expressed surprise that People’s Party would take this action which by giving patronage to VDU might have effect of strengthening that party at next election. I wondered why they did not reform two-party coalition now, keeping in reserve possibility later inclusion of VDU after bad elements in that group had been split off as he indicated was likely.
Gruber replied that these factors have all been taken into account and admitted that People’s Party action partly maneuver to strengthen their hand in negotiations with Soviets. If latter were reasonable, present coalition would be maintained. He thought likely that VDU would split over question of coming into government and some would support Socialists. Of the 14 VDU elected to Parliament, he considered 10 to be more or less reasonable men and only 4 were definitely bad. Gruber indicated he and Figl did not personally fully believe in wisdom of People’s Party action and implied they were mildly opposing it.
He thought that his and Figl’s days were numbered and that this is probably last coalition in which they will be included since their advocacy of cooperation with Socialists had weakened them with right-wing of their own party. He has promised to keep me informed of further developments.
While I do not believe we should attempt to intervene officially, I consider policy of People’s Party unwise from point of view our interests and overall welfare Austria. I believe they are motivated by overriding fear that breakdown of two-party coalition and new elections might result in Socialist Government. Gruber thought there would be less difficulty in agreeing on economic program than upon composition of government. He said many of his party leaders believed that we were being too strict in counterpart allocations [Page 1844] and that agreement upon economic program would be facilitated if they could be in position to do more to resolve unemployment problem. Helmer sent me word today that Socialists are fully informed of People’s Party negotiations with VDU and indicated that Socialists would not agree to three-party coalition.1
- According to telegram 2577 to Vienna, Mar. 3, the Department of State approved the position taken by Thompson as explained in telegram 2565. It also noted that the U.S. press had widely hailed the election as a triumph of Austrian political maturity under the most trying circumstances. (763.00/3–253)↩