Ext 6116/46(S) 'Secret Weekly Political Intelligence Summaries, nos 356-416, August 1946-November 1947' [‎321r] (655/978)

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considers that no German Government can
merely stand by through the summer,
waiting upon the next Four-Power Con
ference.
Dr. Schacht has been sentenced by a
German tribunal in Stuttgart to eight
Jarirs’ imprisonment, of which he has
already served two years. He loses most
of his property and civic rights. He was
not convicted as a “war criminal”—on
which charge he was acquitted at Nurem
berg^—but as belonging to the lesser cate
gory of a “ major offender ” because of his
support of the Nazi regime.
(See also under “ France.”)
AUSTRIA
The Austrian Peace Treaty Commission
has begun work in Vienna. The five meet
ings held so far have been largely devoted
to attempts to secure agreement on the
terms of reference of the Committee of
Experts who are to study Articles 35 and
42 of the Austrian Treaty (German assets
and United Nations’ property in Austria).
Drafts have been submitted by the delegates
of the Four Powers and, while no agree
ment has yet been reached, the issue seems
to have been whittled down to one of
resolving the differences between the
proposals submitted by the United States
and Soviet delegates. At the fifth meeting
of the Commission, on the 17th May, the
British delegate expressed his willingness
to accept the United States draft in order
to expedite progress.
The main point at issue has been the
amount of latitude to be allowed to the
Committee of Experts in their considera
tion of the German assets : the Western
delegates have felt increasingly that the
Committee should fix its own programme
of work and procedure, while the Soviet
delegate has claimed that the Commission
should discuss and lay down the Com
mittee’s programme, particularly in regard
to the “concrete facts” which it should
be instructed to try and establish. In
conversation with the British delegate, on
the 17th May, M. Novikov stated that his
real fear was that, if the Committee of
Experts were given too free a hand, they
would wander off into all kinds of questions
which would require years to solve. After
the British delegate had sought to reassure
him on this point, and also on the possi
bility of reconciling the Soviet and United
States’ drafts with a view to enabling the
Committee of Experts to begin work on
the oil industry and other important con
cerns, M. Novikov promised to study
Mr. Dodge’s proposal. Mr. Dodge had
previously proposed an amplified definition
of the “ concrete facts ” regarding the
most important aspects of the German
assets: the Soviet draft provides that the
Committee shall begin its work with an
examination of “ the most important
aspects ” of German assets in Austria,
while the United States draft provides that
the Committee shall begin with an
examination of “concrete facts.” It has
been agreed in principle that oil shall be
taken first and shall be followed by other
important questions, such as the Danube
Shipping Company, the insurance com
panies and certain branches of industry.
According to Reuter, the failure of the
Commission to reach agreement on the
preliminary discussions on procedure
caused great pessimism among Austrian
observers in Vienna. The Socialist
Arbeiter-Zeitung commented : “ From this,
every Austrian will be able to calculate
when the State Treaty may be achieved.”
The Austrian Cabinet decided at its meet
ing on the 13th May to appoint a com
mittee of experts to discuss with Austrian
Government Departments various questions
of the Treaty. The Vienna press has
expressed its disappointment that the
conference is about, rather than with,
Austria, but it is hopeful that the Com
mission will work in constant contact with
the Austrian Government and Austrian
experts. The Communist press organ has
described the conference as “ the gate
which Molotov opened for Austria ” and
has reiterated its appeal for “ understand
ing ” with the Soviet Union.
It has been reported from Vienna that
the continued low level of hard coal and
coke loadings for Austria from the Ruhr,
following upon the much reduced deliveries
of the first few months of 1947, is rapidly
precipitating a crisis in Austrian industry.
Only 70 per cent, of Austria’s total alloca
tions for the first quarter of 1947 were
delivered. It is feared that, unless
deliveries are speeded up and maintained
at a level consistent with allocations,
Austria’s only battery of coke ovens at
Linz, and the only blast furnace at present
working in Austria, at Donawitz, will have
to close; consequent decline in already low
morale may provoke unrest,
CZECHOSLOVAKIA
During the debate on foreign affairs in
the National Assembly on the 14th May,
members of all parties spoke in eulogistic
terms of the Czechoslovak-Polish Treaty
signed in March. The Palish Ambassador,
M. W ierblowski, was given an ovation when
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