Evening star. [volume] (Washington, D.C.) 1854-1972, 1946-06-16
Austria 10 Maintain
independence From
~
Reds, Chancellor Say!
By SomueI LubelI
North American Newspaper Alliance

3. VIENNA, June 15.-Austria is de-
termined to maintain her economic
independence" and will not sign a
trade treaty with Russia until after
Austria is definitely free" Austrian
Chancellor Leopold Figl told me
yesterday in an interview.
Mr.. Figl reiterated the hope that
the Big Four ministers in Paris
would redeem the promise" made
In the Moscow agreement to treat
Austria as liberated nation But,
he added, even if the parley fails
to break the deadlock parayzing
this country, Austria would some
how have to find the strength to
ride out the tide"
Mr.. Figl's statement that Austria S
liberation must precede any trade
agreement is considered particularly
significant in view of recent Soviet
pressure for such a trade link with
Austria. This pressure has been
interpreted in some quarters here as
possibly rejecting Soviet startegy to
bring Austria under Russian eco
nomic dominance before agreeing to
any peace treaty which would with
draw from Austria all troops of the
four occupying powers.
Government Stiffens.
Last week the Austrian govern
ment was reported Wavering under
the Russian pressure, and Mr. Figls
statement indicates a Stiffening of
the Austrian backbone, probably as
a result of American counter-pres-
sure-and also in large part due to
the fact that Soviet economic de-
mands still are too high or sweep
ingly vague.
One ranking Austrian official, not
Chancellor Figl, yesterday summed
up Austria's dilemma.
IF We could trade reasonable
economic concessions" he said, for
Russia to end her military occupa-
ton We might do so, but no such di-
rect trade has been offered us. We
are faced with sweeping demands,
and even if we agreed to them, the
military occupation might not be
ended. We then would be worse off
than before. Austria must have def
mite assurance of her liberty before
she can agree to economic conces-
Sions."
Terms Kept Secret.
Mr.. Figl would not reveal the
terms for which Russia has been
pressing, except to say that Russia
wants permanent economic roots
In Austria" He then added, I'VE cam
not give up our economic indie
pendence FOR the sake of some i'm
mediate advantages" But ne empha-
sized that Austria was anxious for
economic understanding with the
Soviets, saying IF we get our
liberty. We are thoroughly prepared
to work out satisfactory relations
both with Russia and other coun-
tries"
Expressing the hope that the
foreign ministers would agree in
Paris to a definition of what is
meant by German asset" under the
Potsdam agreement. Figl said this
Issue of disposal of German property
IN Austrias could not be settled by
direct negotiations between the
Austrian and Russian governments.
There are so called German as
sets in all four zones of occupation"
he poiraed out. I'VE must have
definition which will apply to all
zones equally"
This same principle, agreement
with all four occupying powers at
the same time, MIR. Figl went on,
holds also for the question of Aus
tria's repaying the occupying powers
for food and other aid given in the
past. Earlier this week the Soviets
pressed Austria to sign compensa-
ton agreement to repay aid given
the cit yof Vienna by the Red Army
estimated by the Russians at 49,
100000 schillings and at 100000
by Austria or (S7,166,66 and S6,000,-
000). The Soviets wanted the debt
repaid in industrial products to a
value of 100000 schillings plus
another 100000 schillings of fin
ished products manufactured from
raw materials which the Russians
would furnish.
Proposal Shelved.
The Austrian cabinet shelved this
proposal. AS Mr.. Figl explained
we have run up debts not only with
Russia but with other occupying
countries and we must settle them
all together"
1t was feared here that the agree
ment sought by the Russians would
in effect earmark number of Aus
tria's key industrial plants for ex-
elusive Russian production and
might serve as precedent for
similar demands in the future until
the bulk of Austria's industry was
dependent on Russia's needs.
Asked how long Austria could
withstand the squeeze between East
and West and what Austria could do
if the deadlock persisted, Mr.. Figl
replied, the Austrian people are
very patient and they have borne
lot. We can't understand why the
powers continue to treat us like a
defeated nation but we hope justice
will win out"
tCopyrieht, 1850