Foreign Relations of the United States: Diplomatic Papers, 1945, European Advisory Commission, Austria, Germany, Volume III

863.51/1–946

The United States Political Adviser for Austrian Affairs (Erhardt) to the Secretary of State

No. 681

Vienna, January 9, 1946.
[Received January 23.]

Sir: I have the honor to transmit herewith four copies of the translation of the debate in the Cabinet on November 23⁶⁹ over the law to convert currency circulating in Austria.⁷⁰ This debate not only reflects the Austrian point of view at the time with respect to the conversion problem but also indicates in a striking manner some of the continuing problems with which the Austrian Government is concerned. At the conclusion of this debate the Cabinet voted to reject the Currency Law. They subsequently requested the right to appear before the Allied authorities and presented a statement to the quadripartite Finance Committee.⁷¹ After discussions between the Allies and the leading Austrian authorities, the matter was brought before the Cabinet again on November 30 with a request from the Allies that a decision be reached immediately. After another heated and long discussion, the Law was approved and came into force December l.⁷²

The translation of the debate enclosed shows clearly the Austrian fear of inflation, their astonishment over the size of the amounts to be assigned to the Allied occupying authorities, and the fear on the part of many that the size of Allied expenditures may make fiscal control impossible. This translation of the debate should be considered in connection with the financial reports which have described other phases of this problem and which give the schedule of events leading up to final acceptance of the Conversion Law.

Respectfully yours,

For the Political Adviser:

Cecil W. Gray

Counselor of Mission

69. Not printed.
70. Agreement was finally reached by the Allied Council on a program for the conversion of reichsmarks and Allied Military schillings into Austrian National schillings on November 16. The text of the Allied Council’s Conversion Decree is printed in the Gazette of the Allied Commission for Austria, No. 1, December 1945–January 1946, p. 31. The plan adopted was then given to the Austrian authorities with the request that it be drafted into law. The Austrian draft law was approved by the Allied Council on November 18, and was then debated by the Austrian Cabinet on November 23.
71. In its comments to the Allied Council, the Austrian Government urged that it was not in a position to exercise the normal functions of a government and the fiscal control which was required of it by the Allied Council unless some limit was placed on military expenditures.
72. The Austrian currency conversion law of November 30, the so-called Schillinggesetz, is in Staatsgesetzblatt für die Republik Oesterreich, Jahrgang 1945, Ausgegeben am 1, Dezember 1945, 59. Stück, Nr. 231, p. 419.