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D. Trade and Finance

1. Negative trade balance since 1918

2. Pre-war exports: finished products

3. Pre-war imports: food, raw materials

4. Trade today geared to uncoordinated economic systems of other devastated European countries

5. Tourist trade important to economy

a. Tourist areas: Tirol, Salzburg, Vienna

b. Special rations to attract visitors

6. US Army in Austria now paying its own occupation costs

a. Aid Austrian economy

b. Offset Russian influence

E. Natural Resources

1. Oil: Zistersdorf oil fields in Russian zone

a. Production capacity enough for Austria plus export

b. Russians keep most of Zistersdorf production

2. Waterpower: All zones. Great potential production

3. Coal, iron, ether minerals: Mainly in British and Soviet zones.

F. Transportation

1. Danube (Donau) system

a. Gateway to sea for Central Europe

b. Large Austrian commercial fleet

c. Russian pressure for control of Danube traffic

2. Railroads: state-owned, good condition but short on rolling stock

3. Highways: Excellent road system plus section of Autobahn

BIBLIOGRAPHY AND SUGGESTED READING:

Gunther, John
Inside Europe, Harpers & Brothers,
New York, 1940

Tschan, Grimm, and Squires
Western Civilization Since 1500, Lippin-
cott, New York, 1942

Encyclopaedia Britannica, Vol. II,
Encyclopaedia Britannica, Chicago, 1944

Report of the US High Commissioner,
Military Government Austria, All Issues
1946-1947

World Report US News Publishing Co.,
Washington, D.C., 4 February 1947
and 1 July 1947 Issues.

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STUDENT OUTLINE

INTERNATIONAL SURVEY BRANCH
Central and Western Europe

AUSTRIA
POST WAR PROBLEMS

PURPOSE: To present both a brief summary of postwar conditions in Austria from a political standpoint and a discussion of the factors that threaten Austrian independence today.

SUPPLEMENTARY MATERIAL: 1. Lecture outline, one to each student.

2. Wall map of Post-War Austria.

I. Moscow Declaration, 1943.

A. Big Three (U.S., USSR, Britain) guaranteed Austrian independence.

1. Austria totally divorced from Germany.

2. Dependent to some degree on Austrian contribution to the liberation.

B. Plans made for joint rule of Austria pending formation of democratic Austrian government.

1. Set up democratic government.

2. Build stable economy not dependent on Germany.

3. Denazification and disarmament.

C. France later included in occupation plans as fourth power.

II. Liberation of Austria, April-May 1945.

A. Eastern Austria and Vienna over-run by the Russians.

B. Russians immediately installed leftist provisional government in their zone, contrary to Moscow agreement.

1. Government headed by Dr. Karl Renner, Socialist, former First Chancellor of Austrian Republic.

2. Included equal (not proportional) representation from each political party.

3. Provisional government slighted Peoples Party (Catholic agrarian) of rural and semi-rural districts.

C. Western Austria liberated by troops of U.S. Seventh and Third armies.

D. British Eight Army advanced into southern Austria (Kärnten and Steiermark).

E. Austria given temporary status as enemy or occupied nation.

1. Non-fraternization introduced (later repealed).

2. De-nazification and disarmament policy initiated.

3. CIC given mission of occupational phase security and apprehension of war criminals.

III. Potsdam Conference, August 1945.

A. Western powers accepted provisional government for all of Austria.

1. Joint occupation of Vienna, the Austrian Capital.

2. Peoples Party (majority party) given better representation in Renner government.

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VI. Displaced persons.

A. 160,000 registered DP's in U.S. Zone.

1. Mainly Slavic-Volksdeutsch DP's who fear Communist-Russian
terrorization in home country.

2. Resettlement plans for bringing DP's to South America, United
States, Western European countries.

3. DP camps administered by relief agencies. Supervised by
U.S. army.

B. 20,000 Jewish refugees in U.S. zone.

1. Mainly from areas now under Soviet control.

2. Allegedly exfiltrating to Palestine.

3. Subject to Austrian anti-semitism in some degree.

C. Security.

1. DP black market operations.

2. Undercover Communist activity.

3. Neo and pro-fascist activity.

D. Russian viewpoint.

1. No DP's in Russian zone.

2. DP's in U.S. zone threat to Russia necessitating large
Russian occupation army.

3. Constant demands for return of Russian and Ukrainian DP's.

E. U.S. Policy.

1. Prosecute and punish war criminals.

2. Grant asylum to DP's fearing repatriation.

VII. Reparations problem.

A. Western powers agreed to Russian claims on German assets in
Austria at Potsdam.

1. For repayment in kind on German destruction in USSR.

2. Conference failed to define a German asset.

B. Russian wholesale seizure of Austrian industrial equipment

1. Some reparations material of doubtful German origin.

2. Austrian economy strangled by loss of machines.

C. Recent Russian moves.

1. Seizure of Zistersdorf oil fields and refineries.

2. Danube shipping.

3. Increased Russian pressure for stock control of Austrian
industry.

VIII. Border revisions.

A. Western powers support status quo.

B. Russians back claims of satellite Communist countries.

1. Yugoslavia demands slice of southern Austria.

2. Czechoslovakia wants part of Austria near Czech frontier.

IX. U.S. Policy in Austria.

A. Rebuilding of Austrian economy and government.

B. Moscow conference, 1947.

1. Torpedoed by Russian reparations demands.

2. Discouraged Austrian hopes for early peace settlement.

C. Recent U.S. moves.

1. $100,000,000 loan to Austria subject to U.S. inspection.

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2. Assumption of occupation costs by U.S.

3. Retroactivity of occupation payment plan.

4. Protest against Russian seizures of Austrian economy.

5. Strong stand against Russian aggression.

D. Next Russian-U.S. conference on Austria scheduled for November.

X. Austrian attitude.

A. Austrians fear Russian coup or Communist control.

1. Possibility of permanently split Austria.

2. Possibility that Austria may follow Hungary into Red net.

Holborn, Hajo

American Military Government. Infantry Journal Press, Washington, 1947.

Report of the U.S. High Commissioner. Military Government Austria, all issues, 1946 - 1947.

Civil Affairs in Occupied and Liberated Territory. Analysis Branch, War Dept. All issues, 1946 - 1947.

1.S.F.33

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Name
Grade or
Rank
Group
Date

INTERNATIONAL SURVEY BRANCH

Central and Western European Section

EXAMINATION

Hours 23 - 33 inc.

Score

INSTRUCTIONS: The following examination consists of essay and completion questions. The value of each question is as indicated.

Point
Value

(3) 1. A majority of the people within the Austro-Hungarian monarchy were of stock.

(3) 2. What position did Dollfuss and Schuschnigg hold?

(6) 3. State the chief difference in the governmental set-up between Austria and Germany *today*.

(3) 4. Which parties are represented in the present Austrian government? and

(5) 5. State the reasons why Mussolini opposed the Austrian Anschluss attempt in 1934. (Assassination of Dollfuss)

(5) 6. Explain the non-interference of Mussolini in the Anschluss in 1938 (Schuschnigg).

(8) 7. Give two (2) major problems with which the present Italian government is confronted.

(4) 8. The present status of Trieste is that of

(3) 9. Which is the main point of disagreement concerning an Austrian Peace Treaty between Russia and the Western Allies?

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Central and Western Europe

| HOUR | SUBJECT | INSTRUCTOR |
|---|---|---|
| 1. | ORIENTATION | Major H.C. King |
| 2. | PARLIAMENTARY GOVERNMENT I | Capt. F.R. Sala |
| 3. | PARLIAMENTARY GOVERNMENT II | Capt. F.R. Sala |
| 4. | WORLD POWERS | Capt. F.R. Sala |
| 5. | GEOPOLITICS | Capt. F.R. Sala |
| 6. | GEOGRAPHY OF EUROPE | Capt. D.M. Allen |
| 7. | GEOGRAPHY OF GERMANY | Capt. D.M. Allen |
| 8. | GEOGRAPHY OF RUSSIA | SFC G.E. Bullens |
| 9. | GERMANY: Patterns of Culture | Lt. R. Rothschild |
| 10. | EXAMINATION: Hours 2 to 9 inclusive | SFC G.E. Bullens |
| 11. | GERMANY: History to 1806 | Lt. R. Rothschild |
| 12. | GERMANY: History 1806 to 1918 | Lt. R. Rothschild |
| 13. | GERMANY: Weimar Republic | Lt. R. Rothschild |
| 14. | GERMANY: History of Third Reich | Lt. R. Rothschild |
| 15. | GERMANY: Third Reich | Lt. R. Rothschild |
| 16. | GERMANY: Post-War Developments | Capt. E.C. Hulmer |
| 17. | GERMANY: Civil Government-Trizia | Capt. E.C. Hulmer |
| 18. | GERMANY: Present Political Parties I | Capt. E.C. Hulmer |
| 19. | GERMANY: Present Political Parties II | Capt. E.C. Hulmer |
| 20. | GERMANY: Russian Zone of Occupati | Capt. E.C. Hulmer |
| 21. | EXAMINATION: Hours 11 to 20 inclusive | Lt. R. Rothschild |
| 22. | AUSTRIA I | Lt. R. Rothschild |
| 23. | AUSTRIA II | Lt. R. Rothschild |
| 24. | FRANCE I | Lt. R. Rothschild |

Int SF # 2

4 Nov 48 (Rev 4 May 49)

<table><thead><tr><th>HOUR</th><th>SUBJECT</th><th>INSTRUCTOR</th></tr></thead><tbody><tr><td>25.</td><td>FRANCE II</td><td>Lt. R. Rothschild</td></tr><tr><td>26.</td><td>ITALY AND TRIESTE</td><td>Lt. R. Rothschild</td></tr><tr><td>27.</td><td>POLAND AND HUNGARY</td><td>Capt. D.M. Allen</td></tr><tr><td>28.</td><td>CZECHOSLOVAKIA</td><td>Capt. D.M. Allen</td></tr><tr><td>29.</td><td>YUGOSLAVIA AND ALBANIA</td><td>Capt. D.M. Allen</td></tr><tr><td>30.</td><td>RUMANIA, BULGARIA AND GREECE</td><td>Capt. D.M. Allen</td></tr><tr><td>31.</td><td>NEAR EAST I</td><td>Capt. D.M. Allen</td></tr><tr><td>32.</td><td>NEAR EAST II</td><td>Capt. D.M. Allen</td></tr><tr><td>33.</td><td>EXAMINATION: Hours 22 to 32 inclusive</td><td>Lt. R. Rothschild</td></tr><tr><td>34.</td><td>USSR: Russian Revolution of 1917 (Part I)</td><td>WOJG M.C. Huss</td></tr><tr><td>35.</td><td>USSR: Russian Revolution of 1917 (Part II)</td><td>WOJG M.C. Huss</td></tr><tr><td>36.</td><td>USSR: Russian History 1924 to present</td><td>WOJG M.C. Huss</td></tr><tr><td>37.</td><td>USSR: Constitution of 1936</td><td>WOJG M.C. Huss</td></tr><tr><td>38.</td><td>USSR: Communism-Party Dominance over State</td><td>WOJG M.C. Huss</td></tr><tr><td>39.</td><td>USSR: Intelligence Organizations</td><td>SFC G.E. Bullens</td></tr><tr><td>40.</td><td>BENELUX</td><td>Capt. D.M. Allen</td></tr><tr><td>41.</td><td>SCANDINAVIA</td><td>Capt. E.C. Hulmer</td></tr><tr><td>42.</td><td>NORTH ATLANTIC PACT</td><td>Lt. R. Rothschild</td></tr><tr><td>43.</td><td>EXAMINATION: Hours 34 to 42 inclusive</td><td>WOJG M.C. Huss</td></tr></tbody></table>

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