763.0221/7–3053: Telegram

No. 877
The United States High Commissioner for Austria (Thompson) to the Department of State1

priority

262. Soviet HICOM this morning delivered note to Chancellor with copies to Western HICOMs stating that in accordance with Austrian Government desire the Soviet Government now finds it possible effective August 1 to assume “all expenditures for maintenance of Soviet occupation forces” and thereby relieve Austrian budget from these costs.2

In response to press queries, US HICOM released following comment:

“The US element welcomes this development. It will be recalled that the US element in Austria has been paying all of its own expenses since June of 1947 and, of course will continue to do so. Any step which lightens the burden of occupation carried by the Austrian Government and the Austrian people will, I am sure, be welcomed by all concerned. It is hoped that this action by the Soviet element will be followed by the vastly more important relinquishment for the benefit of the Austrian economy of the so-called former German assets, as was done in 1946 by the US, France, and the United Kingdom. Best of all would be the prompt conclusion of an Austrian State Treaty.”

Thompson
  1. Repeated to Bonn and Moscow.
  2. According to telegram 269 from Vienna, July 30, both the British and French High Commissioners were “seriously perturbed” over the consequences of the Soviet move to renounce occupation costs even though this action was not unexpected. Thompson stated that there was little doubt that both countries would eventually be forced to follow suit. (763.0221/7–3053) The Department of State was also informed in telegram 382 from Paris, July 30, that the French Foreign Ministry was disturbed by this Soviet action because this was particularly a bad moment for the French in light of their efforts to reduce their military budget. An official of the Foreign Ministry commented that this might necessitate a reduction of French forces in Austria. (763.0221/7–3053) When E. E. Tomkins, First Secretary of the British Embassy, visited the Department of State on Aug. 3, a similar indication was given about the possible reduction of British forces in Austria. (Memorandum of conversation by Collins, Aug. 3, 763.0221/8–353)