Vienna Legation Files: Lot 55 F 74: Box 3161: Airgram
The Minister in Austria (Erhardt) to the Secretary of State
A–473. Reference Department’s A–250, October 13.1 Austrians continue to feel deep concern and even bitterness over occupation costs. In presenting budget to Parliament October 27 Finance Minister Zimmermann pointed out that no provision was made therein for occupation costs and that, if costs were levied next year, imposition of a special occupation tax would be unavoidable.
Gruber raised question with us again yesterday and urged that U.S. endeavor to persuade British and French to renounce occupation costs, thus isolating Soviets on this issue. He went so far as to ask that U.S., regardless of attitude of the other Powers, make Allied Council action impossible by refusing to concur in fixing costs. He was not deterred by argument that Soviets would in that case find some means of levying and collecting costs unilaterally, contending that such action would be no more harmful economically than costs as presently levied and would place Soviets in very unfavorable propaganda position. Gruber also maintained that British and French establishments here, particularly the latter, are unnecessarily large, that French Army in Tyrol serves no useful purpose, that number of French dependents here is grossly excessive and that both French and British still have far too much personnel engaged in civil affairs. He concluded by recurring to oft-repeated theme that it is outrageous that Austria should, three and one-half years after end of war, and through no fault of its own but simply by reason of failure of the Great Powers to agree on Austrian treaty, still be obliged to bear occupation costs.
In discussing problem with Gruber, we repeated considerations set forth in Deptel’s 471, May 25 and 598 July 9,2 and maintained U.S. position as stated by Assistant Secretary Saltzman to Minister Zimmermann. However, Department must expect, in view of bitter [Page 1442] Austrian feeling on this subject and of additional weight which may be imposed by occupation costs on already over-burdened budget, that continued efforts will be made to induce Western Powers to renounce these costs and that, if efforts are unsuccessful, Austrian public opinion, needled by such devices as an occupation tax, will be increasingly agitated against the occupying powers. The U.S. Element, in spite of not being directly involved, can hardly escape sharing to some degree the resulting ill feeling.