ECONOMIC TREATMENT OF AUSTRIA
 
                         SUMMARY
 
        The United States is committed to the political 
objective of a free and independent Austria. Stable and 
prosperous economic conditions in Austria would provide 
a strong underpinning for political independence and 
encourage support from the Austrian people for a separate 
Austrian sovereignty.                
 
     From the moment of occupation it will be necessary
to commence the reconstruction of the Austrian economy. 
The tripartite military government should at once under-
take the eradication of German economic influence in that 
country as well as the denazification of economic life.
It must provide some substitute for German economic admin-
istration and should sequester all Reich German properties 
in Austria and administer them on behalf of the eventual 
Austrian Government. It should take steps to establish 
financial autonomy, including an exchange of currency and 
probably the payment of  interest on the public debt. 
Within its capabilities it should attempt to revive 
civilian production in order to avoid large-scale un-
employment and to satisfy essential requirements. Finally 
it should encourage the revival of Austria's foreign trade 
and if necessary bring in relief supplies of foodstuffs 
and perhaps materials for the rehabilitation of Austrian 
industry.
 
       Most of the longer-range economic problems in Austria 
can be dealt with effectively only when an acceptable 
indigenous government comes to power. In the settlement 
of occupation costs Austria should bear the cost of all 
expenditures incurred in the country by the occupying
forces and should be charged for the value of the relief 
imports. On the other hand, it should be credited for the 
amount of troop pay spent in the country. It is recommended 
that Austria should neither pay nor receive reparation. 
Payments by Austria would threaten its economic viability, 
while Allied claims to German reparation will be so large 
that Austria cannot be allotted a share. By the same token, 
Austria should not obtain any compensation from Germany 
for German currency, public debt, etc., held in Austria. 
The Allied powers should assist, the eventual Austrian 
Government in a long-range program of economic and finan-
cial reconstruction, in particular by helping it to obtain 
foreign markets and credits. Austria should be admitted 
eventually to any world economic organizations that may be 
formed (including the World Fund and Bank). In addition
the major Allied powers may have to make loans to Austria 
justified on political rather than commercial grounds.