No. 496

763.0221/7–1751: Telegram

The United States High Commissioner for Austria ( Donnelly) to the Secretary of State

secret

200. British High Commissioner has informed me of British and French intention to reopen question of occupation costs for 1951, on basis of increase local costs, and to endeavor obtain additional allotment for current year in connection with any quadripartite agreement on 1952. Caccia said he and Payart wld hope additional allocation for 1951 cld be agreed upon in time for Austrians to include sum in their annual deficiency appropriation generally submitted to Parliament in September, and that costs for 1952 cld be decided by October when Austrian budget for coming year will be announced.

In reply to my query re amounts involved, Caccia said present British calculation, which was purely tentative, showed they wld require an additional 11.9 million schillings for 1951. French, he added, were talking about an additional 40 million for current year, and around sum of 200 million for 1952.

Caccia told me British and French Embassies were being instructed to discuss this question with Dept. I strongly recommend that we adamantly refuse to consider any further allocation of costs for current year, and I hope we will use every effort to keep costs for 1952 near the present figure if we are still not prepared to insist that British and French join us in paying occupation costs here.1

Donnelly
  1. In telegram 153 to Vienna, July 18, the Department of State expressed its full agreement with Donnelly’s position. (763.0221/7–1751)