863.6363/9–2645: Telegram
The United States Political Adviser for Austrian Affairs (Erhardt) to the Acting Secretary of State
[Received 3:40 p.m.]
254. Concluding developments re proposed Soviet-Austrian oil contract (my PV 7431 September 13). In discussions on September 17 [Page 608] Soviets indicated willingness to lower somewhat their demands on Austria, e.g., as to capitalization of proposed corporation. However, shortly thereafter Renner is reported to have instructed his representatives for political reasons to suspend all discussions. Apparently that is where matter now stands. Meanwhile Soviets indicated there was no longer need for proposed Austrian trade delegation to proceed to Moscow as planned.
Re Soviet interest in Danube shipping (my 236, September 2016) a Soviet representative in July asked Donaudampfschiffahrt Gesellschaft17 to prepare proposals for Austrian-Soviet corporation to take over and operate DDSG properties (DDSG was originally an Austrian enterprise controlling bulk of non-German shipping on Danube). After Anschluss control was acquired by Hermann Goering Works.18 At present about half DDSG fleet is under Soviet flag and about half is held by US forces above Linz. DDSG accordingly submitted plans under which “foreign interests”, including USSR, would acquire about 40% stock interest and hold veto power over appointment of Vorstand19 members. Soviet representatives have made no counterproposals and Director General of DDSG20 has impression they are not greatly interested. However, some Austrians, e.g., Joham, Director General of Credit Anstalt, feel apprehension of future Soviet pressure in this field.
Soviet railroad experts soon after occupation indicated considerable interest in Austrian railroad system, preparing and requiring urgent printing of a book in Russian containing compendious information. 300 copies were printed and marked “for official use only”.