HSVES

Z H esvenwrtii

ACCESSION NO. \ .

THE REHABILITATION OF AUSTRIA

Beading this Sign Below Date .

1945-1947
The rehabilitation of Austria, Vol I I I . United States Allied Commission Austria.! 19U5 - 1 * 7 .

VOLUME

This Document
IS A HOLDING OF THE

ARCHIVES SECTION

LIBRARY SERVICES
FORT LEAVENWORTH, KANSAS

DOCUMENT NO. K-l61fl5

A miyC&GSCPO-14081 Msr 505M

COPY NO.

PREPARED BY UNITED STATES ALLIED COMMISSION AUSTRIA

R 1 1 1950

THE REHABILITATION OF AUSTRIA

1945-1947

VOLUME

PREPARED BY UNITED STATES ALLIED COMMISSION AUSTRIA

VIENNA, AUSTRIA

Foreword
This volume, the second in a series of four, reports on the progress liberated Austria has made in her struggle to resume her place among the family of nations as a free, sovereign, independent state. Traditionally, Austria represents a symbol of freedom and democracy in the heart of Europe. The progress shown on these pages records the positive aspects of the Austrian struggle for economic and social rehabilitation and the spirit of her people in their battle for Peace and Freedom.

GEOFFREY KEYES

Lieutenant General, US x\rmy United States High Commissioner

TABLE OF CONTENTS

Page Finance Summary Reconstructing Austria's Financial Institutions The Banks The Austrian National Bank The Commercial Banks Other Financial Institutions The Insurance Companies Beginnings of Reconstruction . . . . The Problem of t h e German Branches Restoring t h e Austrian Currency The First Currency Conversion Features of the Currency Protection Law Foreign Exchange Price Stabilization
Why have Austria's Prices Increased
The Black Market
Inflationary Pressure
Balancing t h e Austrian Budget The 1946 Budget
The 1947 Budget
Budget Estimates for 1948
Transport Background Post-War 19451947 Railroads . . .
Highways
Inland Waterways
Municipal Transport
Communications . . Background . . 9 10
12 13 15 17
19 20
21
22
25
25 30 31
32
32

38

Page
The Story of Austrian Aviation Austria's Air Importance The History of Austrian Aviation OELAG Austria's Airline World War I I Occupation a n d Air Rehabilitation What Remains to be Done Restitutions and Reparations External Restitutions Basic Policy for Restitution External Restitution in t h e US Zone . . . International District of Vienna Restitution in t h e British Zone of Austria Restitution in t h e French Zone of Austria Restitution in the Soviet Zone of Austria . The Question of German Assets Allied Policy Prior to the Occupation of Austria Unilateral Action b y t h e Four Powers German Assets in t h e City of Vienna Displaced Persons Origin and Classification of Displaced Persons Quadripartite Control of Displaced Persons Care of Displaced Persons Jewish Refugees The Volksdeutsche Problem Resettlement 53
53
53
56
57
57
64
65
65
66
66
70
70
71
71
72
72
75
81
84
84
86
86
88
88
89
. . . 92
92

38
41 42
43
40
4G 48

Education in Austria

Post-War Austria

Glossary of German Terms

Educational Conditions and Controls after the War The Pattern of Austrian Education Teacher Education Kindergartens and Day-Care Centers Elementary Schools Sonderschnlen Vocational Education Secondary Education Institutions of Higher Education Youth Activities Adult Education Textbook Production and Examination of Instructional Materials

92 93
96
99
100
103 103
104
106
109
113 116

Statistical Annex Money and Banking Insurance Prices and Wages Austrian Federal Budget Austrian Federal Railroads Highway Transport Water Transport Municipal Transport Vienna Communications Air Operations Restitutions Displaced Persons Education

117
121 \
123
124
132
137
144
146
148
148
151
151
154
156

COLORED ILLUSTRATIONS
I II What Threw the Budget out of Balance? 1947
How Did the Federal Businesses Fare? 1947
Facing Page VIII 26 III Federal Railroads, Operating Expenditures and Revenues IV Highway Vehicle Registration Facing Page
34
42

BLACK AND WHITE ILLUSTRATIONS

1 2 3 4 5 6 7 8 9 10 It 12 13 Liabilities of the Austrian National Bank Number of Credit Institutions in Austria Savings in Banks Number of Insurance Companies Operating in Austria Insurance Premiums and Claims Paid Austrian Cost of Living Index Components of Cost of Living Index, 19461947 and Division of Consumer Budget 1947 Changes in Legal and Black Market Prices for Selected Commodities in Schillings,
Jan 1946 and Nov 1947 Black Market Dollar Rate in Vienna, 19461947 Ordinary Federal Budget Results, 19461947 Percentage Breakdown of Federal Tax Revenues Map of the Austrian Railroad Systems The Federal Railroads, Comparison of Monthly Average Number of Employees . . . 3
4
7
9
10
19
20
22
23
26
29
33
39
14 15 16 17 18 19 20 21 22 23 24 25 26 27 Passengers Carried by Federal Railroads Railroad Freight Tonnage Highway Transport Vehicles According to Types of Fuel Consumption 1947 . . . Vienna Municipal Transport System Personnel of the Austrian Federal Post Volume of Letters and Parcel Post, Austria, 1936, 1946 & 1947 Network of OELAG Operations, 1937
Airfields in Austria
Foreign Air Lines in Austria, 1937 versus 1947
Status of Restitution Claims 31 December 1947
Estimated Value of Completed Restitutions, 31 December
1947 Austrian School System
Distribution of School Children, December 1947
Membership in Youth Movements, 1947
Page
40
41
42
44
48
49
54
59
62
68
69
94
101
112

All illustrations prepared by US Allied Commission Austria

VI

ABBREVIATIONS AND CONVERSIONS

Abbreviation or Measurement Sign Explanation or Conversion Abbreviation or Measurement Sign Explanation or Conversion

AYA BTU COSMOS Cubiecenti meter Cubicmeter DDSG D. P. e (Preceding figure) Fed. Fig. Horsepower ICAO IMO IRO Kilogram Kilometer Kilo-WattHour Liter Locomotive Kilometer kg km KWH hp cc cbm

Austrian Youth Activities (US sponsored) British Thermal Unit (See footnote, Table 33) Kontinentale Motorschiffahrts AG. 0.061 cubic inches dry; 0.338 fluid ounces liquid 35.31445 cubic feet

Long Ton M.A. Meter Metric Ton Miles Mut. M.T.

Mis.

2,240 pounds Monthly Average 1.093611 yards 2204.6 pounds

Mutual (Insurance Companies) Not available Number Oesterreichische Luftverkehrs A.G. (Austrian Air Traffic Company); OesterreichischeVersicherungs A.G. (Austrian Insurance Company)j Passenger Petroleum, Oil, Lubricants RM
S
Occupation rate of exchange i$ 0.10 Official rate of exchange $ 0.10 1550 square inches Statistical Annex Soviet holding company for administration of German assets in Austria Union of Soviet Socialist Republics Vienna Inter-Allied Command

Donaudampfschiffahrtsgesellschaft (Danube Navigation Company)! N.A. Displaced Person No. Estimate | OeLAG
j

Federal Figure \

I OeVAG I Pass. I POL

International Civil Aviation Company International Meteorological Organization International Refugee Organization 2.2046223 pounds 0.621370 miles

I Reichsmark
i

: Schilling ' | Squaremeter

! St.A. USIA | (USIVA)

1.0667 liquid quarts or 0.9081 dry quarts 0.6214 locomotive miles ! ; USSR

I VIAC

VII

Note for the Reader

This volume of the study of the "Rehabilitation of Austria" (19451947) contains a short summary and background of the financial development of Austria, and detailed discussions on currency, banking, insurance, foreign exchange, and the federal budget. Furthermore, the economic picture presented in Volume II, is completed by discussions of the developments in transportation, communications, aviation, restitutions and reparations. In addition, a chapter on displaced persons and on education is also included. A warning, however, must be given to the reader with regard to the figures, both in the text and in the Statistical Annex. They have been checked as carefully as possible, but figures for the years 1945, 1946, and partly for 1947 are still subject to revision. However the figures presented are the best available.

VIII

WHAT THREW THE BUDGET OUT OF BALANCE ?

1 9 4 7

ALL FIGURES IN SCHILLINGS

FIGURE

FINANCE

Summary
The newly established post-war Second Austrian Republic was faced from the start with a gigantic financial problem. In order to exist at all, it was necessary first to establish some means whereby financial life could be revived. The provisonal Austrian Government which assumed power in May 1945, thus faced the difficult task of bringing about a resumption of financial activity without an Austrian currency, without gold or foreign ex change instruments with which a future currency could be backed, without a central bank, and without the records or assets of the major private banks, ownership of which had been taken over by the Germans. The second problem, namely the revival of trade and commerce, was al most as difficult as the first. A large portion of the production facilities had been destroyed or damaged, fuel and raw materials were almost non-existent, and communication facilities, especially the railroads, were practically at a standstill due to equipment damage and fuel and power shortages. Also, some of Austria's most valuable trade assets, notably the Zistersdorf oil fields and many miscellaneous factories located in the Soviet Zone had been lost to Austria as far as the benefit of much of their production was con cerned. The mass dislocation of population caused by the war created serious local labor shortages. Until November 1945, Allied military schillings and the Reichsmarks of the defunct German Government constituted the currency of the land. There were 7.7 billion Reichsmarks and one billion military schillings in circulation, representing an inflation of 850% over 1937. This inflation had rendered the money practically worthless. The Austrian schilling was re-established as the Austrian currency by the "Schilling Law of 30 November 1945." This measure reduced the note circulation to S 3.3 billion and total money circul ation to about S 7.0 billion. The law also froze bank deposits and laid the foundation for a reorganization of the banking system. The new money was to be issued by the Austrian National Bank, which had been recreated by a law of July 1945. In the meantime, relief measures, instituted principally by the US and British occupation authorities were slowly reviving communications and some production. By the middle of 1946 a small amount of foreign trade had started. A law of 25 June 1946 set forth the regulations under which the Austrian National Bank could control foreign exchange transactions and holdings. Prior to this law the operations of the foreign exchange depart ment of the National Bank had been governed by a 1938 German law. Most of the provisions of the German law were retained in the new legislation. Rates of exchange were fixed at the rates which had been established by the occupation powers in May 1945. In July 1946, the Austrian parliament passed a law nationalizing the three major commercial banks in Vienna. This had the effect of backing them with the full resources of the government. The insurance companies had been freed from most restrictions in June 1946 by the Transitional Insurance Law. Although these two measures represented great advances toward financial stability, the question of ultimate ownership of several private banks and insurance companies had to be left open, since many were con sidered to be German external assets. But simultaneous with this advance in the national financial structure, the currency was once more becoming inflated. Total circulation (note cir culation plus free giro accounts) rose from S 7 billion to S 9 billion between December 1945 and June 1946. The black market in foreign currencies and scarce commodities continued to flourish, and legal wages and commodity prices rose continously, although wages lagged behind prices. To meet this inflationary threat it was imperative to restore and increase production in all sectors of the economy. Factories had retained full payrolls but could seldom maintain a steady rate of production at a high level owing to poor condition of equipment, lack of raw materials, or low fuel and power availabilities. Farm production was also low, and much of the food produced was used as livestock feed or was diverted to the black market to circumvent the low prices fixed by law. The net result was that money was virtually the only commodity not in short supply. The only bright aspect of this otherwise gloomy picture, was the fact that, with money plentiful and with so few commodities available, the government had little difficulty in balancing its ordinary budgets for 1945, 1946, and 1947. There was, however, no serious attempt to balance the total budget, which included payment of occupation costs to the Allies, support of displaced persons, and reconstruction of war damage. Taxes were based on existing German legislation which suited the emergency situation well

in view of the fact that it had itself been designed to finance the emer gency of war. Near the end of the period under study, production began to recover, and two major steps were taken to stabilize the shaky currency. In February 1947, the US Element released to the Austrian Government 4,450 kg of gold which had been stolen by the Germans from the National Bank, and in the same year the Brussels Reparation Commission returned an additi onal 26,187 kilograms to Austria. With this substantial gold reserve to back the currency, the government, in December 1947 enacted a second currency conversion, which cut total monetary circulation by almost 40%. Prior to this conversion, a wage-price agreement had been made in August 1947 where by a proper balance of wages and prices was attempted. The currency con version was expected to create the conditions necessary for a steady return to full production and general financial stability.

Reconstructing Austria's Financial Institutions

The B a n k s The Austrian National Bank
The Austrian National Bank was first established in December 1922 as the official central bank of the Austrian Republic and as the only agency of the Austrian Government authorized to issue paper currency. The stock holders were principally Austrian savings and commercial banks, public corporations, and private capitalists. The bank was organized in the form of a private corporation, but its charter and by-laws could be altered only by parliamentary action. The principal functions of the bank were to provide banking service for the federal government, to act as a rediscounting agency for the other banks, and to carry out the government's foreign ex change control policy. Its chief duties in the monetary field were to maintain the gold parity of the currency and to control the volume of currency in circulation. After the German annexation of Austria in 1938, the German Reichsbank took over the assets and liabilities of the Austrian National Bank, and placed it under liquidation. As compensation for their shares the shareholders

received German Government bonds. During the eight years of German rule, the National Bank had therefore ceased to exist. Reichsbank branch offices, in Austria carried on limited central banking functions. After the reestablishment of an independent Austria in 1945, one of the first acts of the provisional Austrian Government was to re-establish the Austrian National Bank. This was done through a law dated 3 July 1945. This law, called the "Bank of Issue Transitional Law" (Notenbankueberleitungsgesetz), was a provisional measure. It was designed to enable the bank to resume as far as possible its old functions. The charter and by-laws of the institution were allowed to take effect again in their old form. There were, however, some ma jor changes. No attempt was made to settle the question of the ultimate status of the bank. Pending such a settlement, the new law authorized the government to appoint the President and the members of the Board of Direc tors of the bank, and also authorized the bank to take over the assets of the German Reichsbank in Austria. On the other hand, the new bank assumed liability for the German bank notes in circulation in Austria, and for certain claims against the Reichsbank in Austria. To cover the difference between the assets taken over and the liabilities assumed, the new bank was authorized to include among its assets claims against the German Reichsbank in an equivalent amount. The law of 3 July 1945 was amended by a law passed by the Austrian parliament on 13 June 1946. The revised law specifically authorized the Austrian National Bank, in conformity with its charter and by-laws, to issue bank notes in schillings. The bank had actually been doing this since De cember 1945, under the implied permission contained in the Schilling Law of 1945. The revision of 13 June 1946 also made another, and much more im portant change in the regulations affecting the National Bank. It provided that the bank notes issued under the Schilling Law, together with the sight liabilities assumed by the bank at its re-establishment, should be equated in the balance sheet by a corresponding claim against the Federal Government. This claim was to be reduced by any amounts the bank might realize out of its own claims to the Reichsbank assets in Austria. The amendment of 13 June 1946 to the Bank of Issue Transitional Law also provided that the issuance of bank notes should be limited to the amount of the existing assets acceptable as cover for such notes, plus the bank notes needed by the Finance Ministry to meet the demands of the occupation powers for occupation costs. Bank notes issued to the Finance Minister under this provision were to be equated in the balance sheet by an increase in the banks* claim against the Federal Treasury.

Through these two laws, and the foreign exchange law of 1946, the Austrian National Bank re-assumed all of the functions it had carried out prior to 1938. The first published statement of the re-established bank appeared on 7 October 1946. Among the assets were listed foreign exchange (S 9 million), fractional currency (about S 6 million) and a claim against the Fed eral treasury of S 12,546 million. The liabilities included only bank notes in circulation (S 5,133 million), free giro accounts (S 3,113 million), and blocked giro accounts (S 4,315 million). There were no discounted bills among the assets, since the bank did not immediately begin to carry on a rediscounting business. It was not until February 1947 that discounted bills began to appear among the assets. No gold holdings were listed in the original statement. The first important acquisition of gold was made in February 1947, when the US Element turned over to the National Bank gold weighing 4,450 kg, which US troops had found in Land Salzburg. At the official buying rate for gold, this had a value of about S 47.5 million. In November 1947, the Brussels Repatriation Commission allocated an additional 26,188 kg of fine gold to Austria, as its share of the gold recovered from German stocks. At the price of S 10.690 per gram, this gold has a value of nearly S 280 million. By the end of 1947, however, this second acquisition of gold had not yet been reflected in the official statement of the Austrian National Bank (see Fie. 1 and St A Table 1). In March 1946 a separate department of the bank was established, which at first carried out foreign exchange activities in accordance with regul ations of the German regime. After 25 July 1946 this department functioned in accordance with the new foreign exchange law of the same date passed by the Austrian parliament. The provisional exchange rates adopted under this law were the same as those used by the occupying powers for dollars (S 10 equal $ 1) and British pounds (S 40 equal 1). The official dollar value of other currencies was used to fix the exchange rates between such currencies and the schilling. The Austrian National Bank has used a discount rate of 3.5% ever since its re-establishment, and the rate on loans secured by prime short-term securit ies (so-called "Lombard" loans), had been stabilized at 4.5 %. Unlike other central banks, the Austrian National Bank, although it acts as deposit ory of most of the reserves of the savings and commercial banks, cannot influence the size of these reserves nor exercize any effective influence on the volume of credit outstanding. This is because there is no minimum reserve requirement in Austrian banking law.

LIABILITIES OF THE AUSTRIAN NATIONAL BANK

IN BILLIONS OF SCHILLINGS

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
NOTE: FIGURES ARE AS OF 7 DECEMBER 1 9 4 7 , LATEST PUBLICATION BEFORE 2nd CONVERSION

SOURCE : AUSTRIAN

NATIONAL

BANK

TOTAL CIRCULATION I//\ FREE GIRO ACCOUNTS R&64 NOTE CIRCULATION

Figure 1

The Commercial Banks

Background

Austria's commercial banks have always followed continental banking practice, extending long-term loans rather than the ninety-day loans common in the United States, and acquiring direct ownership interests in the industrial concerns with whom they did their chief business. After the establishment of the First Austrian Republic in 1919, it was evident that Austria had far too many banks in relation to the possible volume of banking business. A pol icy of consolidation was encouraged by the government, and by 1927 only six major banks existed. These were the Laenderbank, the Wiener Bank verein, the Escompte-Gesellschaft, the Creditinstitut, the Bodenkreditanstalt, and the Creditanstalt. Due to their practice of concentrating their business in long-term loans to industry, the Austrian banks were in a highly vulnerable position when

NUMBER OF CREDIT INSTITUTIONS IN AUSTRIA

the world-wide depression of 1929 set in. The Bodenkreditanstalt, one of the oldest and largest banks, was the first to appeal for aid. It was taken over by the Creditanstalt (see Fig. 2 and St. A. Table 4).
The Creditanstalt

1937
MORTGAGE RANKS

1947
aa *- In May 1931 the Creditanstalt, one of the largest banks in South-Eastern and Central Europe, notified the Austrian Government that it had a deficit which later turned out to be nearly S 1 billion. The ensuing collapse of the Creditanstalt could not be prevented by the government, which had con tributed S 100 million, nor by the National Bank, which had advanced S 500 million to the threatened institution. The repercussions of this collapse were virtually world-wide, and were a contributing cause of the deepening depression which first was felt in Germany and then in the United Kingdom, which abandoned the gold standard in September 1931.
Wiener Bankverein

COMMERCIAL BANKS

A i

njfJi

a a) ai*3 aid

PRIVATF RANKS*

SAVINGS BANKS

JKI
-3 !I fl

Austria's second largest commercial bank, the Bankverein, attempted to save itself by a reorganization in 1932 but was compelled, at the end of 1933, to merge with the Creditanstalt.
IIIIIIIIU iiaiiaii

URBAN CREDIT COOPERATIVES

a s a

Creditanstalt-Bankverein

RURAL CREDIT COOPERATIVES

INCLUDES STOCK MARKET BROKERS AUTHORIZED TO CARRY ON LIMITED PRIVATE BANKING BUT SELDOM PERFORMING THIS FUNCTION
PREPARED BY U.S. ALLIED COMMISSION AUSTRIA

The newly created Creditanstalt-Bankverein became the largest and most important commercial bank in Austria. It still retains this position today. It now has 9 provincial branches, and 23 branch offices in Vienna. It con trols a large number of important industrial firms, and the list of enterprises in which the bank is interested includes virtually all fields of industry and commerce in Austria. Before the Anschluss it controlled, or participated in, major companies in the fields of insurance, water transportation, electric power, construction, mining, steel manufacture, metal industries, railroad equipment, machinery, automobiles, paper, flour, sugar, dairy products and a number of other enterprises. The Germans, however, forced the bank to sell substantial holdings, especially in the field of transportation and steel manufacture. The bank still has 3 subsidiaries in the provinces, the Bank fuer Kaernten, the Bank fuer Tirol und Vorarlberg, and the Bank fuer Oberoesterreich und Salzburg, all of which are provincial banks of good standing.

Figure 2

The Creditanstalt-Bankverein under German Control

When the Germans annexed Austria, the capital stock, both common and preferred, of the Creditanstalt-Bankverein had a par value of S 101 million. Approximately 36% of the total shares outstanding were in the hands of the Austrian Government, about 12% in the hands of the Nationalbank, about 16% were owned by the employee's pension fund, 29% were in scattered holdings, while 7% were owned by the bank's own subsidiary, the "Oesterreichische Realitaeten A. G.," a real estate firm. The shares owned by the Austrian Government were taken over by the Vereinigte Industrie A. G., Berlin, a holding company owned by the German Reich. The Austrian Government received no compensation. The shares which the Austrian National Bank owned through its subsidiary, the Oesterreichische Industriekredit A. G., were taken over by the Reichsbank. No compen sation was paid. Approximately 48% of the stock of the Creditanstalt-Bankverein there fore came into German hands after 1938. The Reich also took over the 16% of the shares owned by the employees' pension fund, and acquired additional shares by open market purchases, mostly from foreign stock holders. At the end of the war the German holdings amounted to 77% of the total. Through its control of the Creditanstalt-Bankverein the Reich acquired influence over the important Austrian industrial enterprises which the bank controlled. Under Nazi management the Creditanstalt-Bankverein pursued an aggres sive policy of expansion, buying shares in banks in Czechoslovakia, Bulgaria, Yugoslavia, and other countries. While thus assisting in the financial penetration of countries already under Nazi domination, or slated for future domination, the Creditanstalt-Bankverein was compelled to convert a con siderable part of its assets into German Reich securities. As of 31 December 1946 the bank's holdings of German securities and claims against Germany amounted to S 324.9 million, or about 15% of its total assets. The proportion would have been much higher had not some of the leading figures in the bank's management been able to dispose, just before the end of the war, of a portion of the German securities held by the bank. After the re-establishment of an independent Austria the CreditanstaltBankverein resumed its pre-war character as an Austrian institution and began the difficult task of rebuilding its business. By the end of 1947 the bank was operating normally, although it was unable to evaluate its assets with sufficient accuracy to publish a balance sheet. Under the nationalization
l*

law it became a government-owned institution, but this caused no important changes in the bank's policies or personnel. The Laenderbank, Vienna. The second largest commercial bank in Vienna is the Laenderbank. Although it has only a few important industrial interests, its banking business is second in volume only to that of the Creditanstalt-Bankverein. The bank was founded in 1880 as the "Oesterreichische Laenderbank," and became the official bank of the City of Vienna. It established branches in Paris and London before World War I, and carried on a large amount of international business. After World War I its foreign debts were so large in relation to its other assets that a reorganization became necessary. A French banking group acquired control and contributed fresh capital. The reorganized institution was known as the Central European Laenderbank, and its head office was in Paris. The bank, by virtue of the special Austrian law establishing the institution and requiring that the major part of its assets must be invested in Austria, retained its Austrian character, and about 75% of its business remained Austrian. Soon after annexation in 1938, the French interests controlling the bank decided to sell the Austrian branch to a German banking group. The Mercur bank, formerly the Austrian subsidiary of the German Darmstaedter and Nationalbank, together with the Vienna branch of the Hermesbank of Budapest, the Zivnostenska Banka of Prague and the Credito Italiano of Milan, were joined together in a new institution bearing the name "Laenderbank Wien." Although the Laenderbank branch had by far the largest business of the banks combined by the merger (possibly as much as two-thirds of the total) it was really the Mercurbank which absorbed the others and kept the old well-known name of Laenderbank for reasons of prestige. The Mercurbank, almost 100% Germanowned, was the only one in the group with any German share-holdings. Through this merger the Nazi managers of the new bank were able to make advantageous use of the numerous foreign connections of the old Laenderbank. The bank acquired shares in banks in Czechoslovakia, Poland, Rumania, Yu goslavia, Hungary, and Bulgaria. It also established connections with Hun garian and German banks which had subsidiaries in Turkey and Greece. As a result of World War II, the Laenderbank, like all the other Austrian banks doing business in foreign countries, lost all its foreign branches and foreign assets. The French interests have nevertheless claimed restitution of their former Laenderbank shares on the ground that the sale to the Ger mans was made under duress.

The Hypotheken- und Creditinstitut

Other Financial Institutions

Savings Banks At the end of 1947 there were 197 savings banks in Austria, but more than half of the total deposits in all savings banks were in two Vienna instit utions, the Zentralsparkasse der Gemeinde Wien, and the Erste Oesterreichi sche Spar-Cassa. The first of these is owned by the City of Vienna. Next to the Creditanstalt-Bankverein it is the largest financial institution in Austria. The second largest savings bank, the Erste Oesterreichische Spar-Cassa, is one of the oldest institutions in Austria and is still run in the form of a non profit association. In the provinces nearly all savings banks are owned and operated by municipalities. A further savings institution is the Postal Savings System (Postspar kasse). This enterprise is wholly federally-owned, and is similar to the postal savings systems in England and in the United States.
Mortgage Banks

The third largest commercial bank in present day Austria is the Hypotheken und Creditinstitut, Vienna. This bank had been established as the "Credit institut fuer oeffentliche Unternehmungen." It was founded in 1896 as a government-owned mortgage and commercial bank. Before 1938 its principal business was connected with the financing of state-owned enterprises, public works, and housing projects. The Austrian Government owned about 95% of the shares outright, and the Austrian postal savings institutions owned about 3%. The business of the bank was largely limited to Austria. After the German annexation of Austria, the Bayrische Hypotheken- und Wechsel bank, Munich, acquired control of the Hypotheken- und Creditinstitut through the wholly owned Austrian subsidiary of the Munich Bank, known as the Salzburger Kredit- und Wechselbank. The Austrian Government never re ceived any actual compensation for its share holdings in the Institut. At the end of 1946 the Institut had RM 42 million of German securities and RM 3 million of other German assets as against capital and reserves amounting to only S 16 million. The Nationalization Law On 28 July 1946, Parliament approved a law nationalizing the Credit anstalt-Bankverein, the Laenderbank, Vienna and the Hypotheken- und Credit institut. This action was taken because it was clear that all these banks were actually insolvent and because the Austrian Government had contributed heavily to their capital prior to 1938. The nationalization law put all of the resources of the Austrian Government behind these institutions and thus restored public confidence in their solvency, but did not attempt any solution of the question of the former German holdings in the stocks of the commercial banks, nor of the French claim to a part of the Laenderbank shares. The question of compensation for the lost foreign branches and foreign assets of the commercial banks, as well as the losses within Austria which the banks and their affiliated enterprises suffered as a result of the war, were not treated in the nationalization law. Nor did the nationalization law have any important effect on the actual operations of the nationalized banks. They continued to do business much as before. While none of them had published any balance sheet or profit and loss statements by the end of 1947, it was generally believed that the nationalized banks, as well as the other Austrian banks, were not operating at a profit in the first two post-war years, since economic con ditions were such as to prevent the carrying out of normal banking business. 6

Each of the Austrian Laender, and the City of Vienna, operates its own mortgage bank. The largest of these is the Mortgage Bank of Lower Austria. During the annexation period these banks were operated as German insti tutions, but otherwise they were not affected. After the collapse of the German Reich they again came under the ownership of the Austrian Laender. However the large volume of cash in circulation and the high prices obtainable for agricultural products made it unnecessary for most farmers to apply for mort gage loans. In fact, a large percentage of the mortgages outstanding were paid up between 1945 and 1947, and the lack of adequate interest income on loans has made it difficult for the banks to meet operating expenses in the post-war period. As is the case with the commercial banks, the Land mortgage banks had published no balance sheets or profit and loss statements by the end of 1947. Private Banks In March 1938 there were about 140 private banking and brokerage firms in Austria, the majority of them in Vienna. "Aryanization" by the German authorities, and the general restrictions on private enterprise under the Nazi regime, caused most of the institutions to disappear. Among the few important private banking firms remaining today are E. V. Nicolai & Co., which had taken over the firm of S. M. von Rothschild; "Schoeller & Co.,

both in Vienna; and Karl Spaengler & Co., Salzburg. Post-war develop ments did not encourage the re-emergence of private banking.
Credit Cooperatives

SAVINGS IN BANKS

IN MILLIONS OF SCHILLINGS 1947

Before the Anschluss Austria had about 2000 rural credit cooperatives, or Raiffeisenkassen, and about 340 urban credit cooperatives. Together with cooperatives of other types, they were connected with the Girozentrale der oesterreichischen Genossenschaften, which acted as a common clearing house and banking institution for the member cooperatives.
Pawn Brokers

The only important pawn broking institution in Austria is the "Doro theum," a government corporation which not only lends money on personal property, but receives savings deposits and holds auctions of property of all kinds. The Stock Exchange Upon the entrance of Russian troops into Vienna, the Vienna stock ex change closed its doors. Officially it had not been re-opened by the end of 1947. An unofficial securities market, however, was already functioning by late September 1945. At first trading was limited to occasional transactions between bankers and brokers. On 16 August 1946, an unofficial but regulated market was opened under the guidance of a committee composed of all active licensed traders in securities. Quotations for a limited group of stocks and bonds were announced in unofficial bulletins. An index of securities prices, based on these unofficial quotations, shows a steadily rising trend during the first nine months of 1947 (see St. A. Table 17). In the last three months of 1947 prices fell sharply, as rumors of the impending conversion grew into reality.
Post-War Bank Deposits and Loans

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN AUSTRIA

JUL

AU6

SEP

OCT

NOV

DEC

PREPARED BY U.S. ALLIED COMMISSION

Figure 3

No interest was paid on deposits in Austrian banks during the first two and half post-war years (mid-1945 to December 1947). There was thus little incentive to save, and post-war conditions made the accumulation of savings virtually impossible for the ordinary citizen. Business enterprises generally needed all their available cash for reconstruction purposes. It is not surprising, therefore, that the volume of free deposits in savings accounts showed a down ward trend, falling from S 3,877 million in June 1946, the first month for which post-war totals are available, to 2,573 million in November 1947,

just before the second currency conversion. Free checking deposits, on the other hand, rose from S 3,638 million in June 1946 to 4,978 million in November 1947, but part of the increase was due to unblocking of accounts blocked under the Schilling Law (see Fig. 3 and St. A. Table 2). Bank loans outstanding, in spite of the high interest rate of about 8%% common in Austria, rose in volume during the first one and a half post-war years. (Data from the end of the war to June 1946 are not available.) At the end of June 1946, bank loans outstanding amounted to S 1,724.5 million at the end of December 1947 the corresponding figure was S 2,146.2 mil lion and in September 1947, the date of the last pre-conversion report, the figure was 2,193.4 million (see St. A. Table 3). Outlook Although the ownership status of Austria's principal banks, as well as the question of the claims of Austria's banks against Germany, can be de

cided only by a State Treaty, the future of Austria's banks as operating con cerns would seem to be assured. The banks will inevitably participate with profit in the financing of the country's reconstruction and in the financing of Austria's part in the Marshall Plan. This should give them the necessary impetus to establish themselves once more on a firm footing.

The I n s u r a n c e Companies Historical Background

Even in the days of the Empire, Austria was plentifully supplied with insur ance companies of all kinds. These companies expanded not only within the Empire but extended their business beyond its borders to neighboring countries. Vienna's position at the cross-roads of East Central Europe made her a natural center for the insurance of Danube river shipping and overland freight passing across Austria. After the dismemberment of the Empire in 1918, the Austrian insurance companies continued on a reduced scale to transact business in the succession states. Even the largest of them were small by American standards. They would have been unable to stand alone without recourse to the device of reinsurance. The Austrian companies were, therefore, drawn into a world wide net of reinsurance agreements. The greatest amount of business was transacted with Germany, Switzerland, France, and England, although it was by no means unusual for Austrian risks to be reinsured with Dutch, Scandinavian, and even South American countries, with return business flowing back to Austria through the same channels. The chief source of foreign business, however, remained the Balkans and the Near East. Austrian companies had branches in Prague, Budapest, Belgrade, Cairo, Haifa, and other centers. At the same time, Italian, Swiss, German, British, and Hungarian companies were competing with the Austrians on Austrian soil. In addition to the stock companies, Austria had, and still has, a number of important institutions of a quasi-public nature. These are the provincial or Land fire insurance institutions of Salzburg, Upper Austria, Carinthia, and other Laender, and the Vienna Municipal Company, a large mutual which writes all types of insurance. Another large company is the Versiche rungsanstalt der Oesterreichischen Bundeslaender, a stock concern in which most of the stock is held by the Laender, and which derives a large part of its revenue from reinsuring the business of the Land fire insurance com panies. In addition to the stock companies and the large mutuals, there are

hundreds of small mutual insurance societies serving Austrian farmers. Most of these date back to the Austro-Hungarian Empire. These latter are not, however, part of modern Austria's insurance problem, since they were left more or less intact by the Nazi regime. In 1938, after the annexation of Austria by Germany, Austrian insurance laws were abolished and modified versions of German insurance laws were introduced. The Austrian companies came under heavy pressure. The stock companies were forced to sell controlling blocks of shares to German concerns, sometimes at figures far below the actual value of the shares, and to accept German Government bonds in part payment. Resistance to these forced sales, was overcome by threats of imprisonment and other strong-arm methods. This made possible the systematic looting of Austrian companies by German interests. The new shareholders (most of them German companies) ordered that profits be deposited with them. By a system of "centralizing" the records of the Austrian companies within the German headquarters, the Austrian companies were deprived of control over the body of documents necessary for the successful operation of every insurance company. The German Govern ment itself actively participated in this looting activity and forced the Austrian companies to invest their reserves in German Government securities^ German companies were also given exclusive access to the most lucrative portions of the property insurance business. A decree was published which prohibited non-German companies from directly insuring essential war industries in Austria. Shortly after the Anschluss, a number of purely German companies estab lished new branches in Austria. Swiss, Swedish, English, and other foreiga shareholders were obliged to sell out to German interests, often under con siderable pressure. The process of germanization of the Austrian insurance industry led to the establishment in Austria of branches of 20 German property insurance companies, 17 German life insurance companies* 11 German sickness insurance companies, and 3 miscellaneous German com panies (hail and credit insurance). This made a total of 51 new companies, started in an industry in which already 35 Austrian companies, 11 preAnschluss German branches, and 12 branches of other foreign companies, were operating. A further unknown number of German companies sent agents into Austria although these did not open branch offices. Since none of the German companies kept assets to cover their Austrian liabilities within Austria, their existence created a serious problem for the Austrian Govern ment after the separation of Austria from Germany in 1945 (see Fig. 4 and St. A. Table 6).

Moreover, during the war the Austrians had lost all their reinsurance connections with countries other than Germany. The German Government had ordered all German and German-controlled companies to reinsure their risks with an emergency reinsurance pool or with one of the German companies spezializing in reinsurance.

Chaotic Conditions in 1945

The general breakdown of communications and the virtual sealing-off of the various zones of occupation immediately after the cessation of hostilities severely hampered the first attempts to restore the Austrian insurance in dustry in the spring of 1945. Nearly all of the companies had their main offices in Vienna (under sole Soviet occupation). Buildings, records, office equipment, and investment property had all suffered heavy war damage. The more important records were unavailable, since they were in Germany. Moreover, mail and other forms of communication with foreign countries remained interrupted for a long time. The Austrians, therefore, had no means of knowing the condition of their business in Czechoslovakia, Hungary, the Balkans, and the Near East. Neither were they able to maintain contact with their former insurance partners in Germany and were therefore unable to find out the situation with regard to claims which had arisen in the closing period of the war.

NUMBER OF INSURANCE COMPANIES OPERATING IN AUSTRIA

OTHER COUNTRIES

Beginnings of Reconstruction
After Vienna came under four power occupation in September 1945, it became possible to make a start in the reconstruction of the insurance business. The government established an Insurance Department in the Federal Ministry of Finance and issued a number of emergency decrees. Branches of German companies were forbidden to write new business. Pay ments of insurance claims to Austrian citizens were severely restricted, while payments to German citizens and members of the Nazi Party were blocked completely. Public administrators were appointed for the German branches and for certain Austrian companies. After the restoration of communications between Vienna and the rest of Austria, the insurance companies were again able to direct the affairs of their branches and to deal directly with the many claimants who now came for ward. The measures taken by the government to protect Austrian policy holders, and the growing ability of the companies to find or train competent sales agents, were soon seen in an increase in new business and in the volume
1936 1945 1947

1936

1945

1947
PREPARED

uni m m
1938 1945 1947
BY U.S. ALLIED COMMISSION AUSTRIA

Figure 4

of premium income (see St. A. Table 5). The companies were able to show a surplus out of current operations, even though the great majority were clealry bankrupt when their valueless German assets were set down at realistic figures. The Austrians strove to find new reinsurance connections in Switzerland, France, and, in fact, in any country except Germany. These efforts were at first unsuccessful because the Austrian schilling had no value outside Austria. Austria needed her small volume of foreign exchange for more essential pur poses. The Swiss, and later the French agreed, however, to wait for payment and entered into a number of reciprocal reinsurance agreements with Austrian companies. In 1947, the Austrian Government concluded reinsurance treaties with both France and Switzerland. The Austrian National Bank 9

INSURANCE PREMIUMS AND CLAIMS PAID

agreed to make foreign exchange, up to S 5 million available to Austrian companies for foreign reinsurance payments.

The Transitional Insurance Law

In June 1946, improvement in the insurance industry had progressed to a point where the government was able to relax existing restrictions on insur ance payments. Such action was contained in the provisions of the Transiti onal Insurance Law which was passed by Parliament on 13 June 1946. In October 1947, the Finance Minister issued a decree which lifted all remaining restrictions on payments to insurance claimants with the exception of life insurance. Full payment of life insurance claims was allowed only with respect to that portion of the accumulated policy reserve represented by premium payments for periods after 1 January 1946. Sixty percent of the portion represented by earlier premium payments remained blocked. While the outflow of cash to policyholders was materially increased by these relaxations on payments, the companies did not suffer any particular embarrassment. Ever since the end of the war their premium income had been steadily rising, and they had found few favorable investment opportun ities. Consequently, their cash holdings enabled them to withstand the strain (see Fig. 5 and St. A. Table 5). Operating costs, however, were another matter. The price-wage agreement of August 1947 brought higher wages for insurance workers, and higher charges for postage, light, transportation, and other expenses. To meet this rise in operating expenses the government announced a temporary increase in premium rates for most kinds of insurance. This increase was to be effective for a period of one year, and varied according to the type. The highest was the 25% increase for property insurance. By the end of 1947 it had already become clear that hail insurance experience would be so favorable that the increase in this type could be suspended before the one-year period had elapsed. In property insurance, a return to the old rates could already be seen by the end of 1947, while the increase in life insurance rates was not expected to remain as high in the year 1948. The currency conversion of December 1947, and the growing volume of business, were the two principal factors limiting the need for these temporary measures.
] 947

PREMIUM INCOME

CLAIMS

PAID

IN MILLIONS OF SCHILLINGS

GENERAL INSURANCE
SOURCE: AUSTRIAN MINISTRY OF FINANCE

LIFE INSURANCE

SICKNESS INSURANCE

The Problem of the German Branches

At the time of the cessation of hostilities, a total of 62 German insurance companies maintained branches in Austria. All of these had been orphaned

Figure 5

10

by the defeat of Germany and by the Allied policy of severing the economic links between Austria and Germany. Few of the companies had assets of any value in Austria, and none were financially sound. The Austrian Govern ment appointed public administrators for each company, and ordered all but a few to cease selling new insurance. They were permitted, however, to continue to accept premiums on existing contracts and to pay claims under the same regulations as the Austrian companies. These were temporary measures, drafted in the hope that an early peace treaty would clarify the status of the "orphans," especially as to the extent of the parental respon sibility of their German central offices. The branches themselves were clearly in no position to become self-supporting. A further temporary measure was adopted in general insurance. The orphan companies were compelled to join together in a common rein surance pool. Each company contributed according to its respective premium income. The Austrian companies bolstered up the pool by contributing to a contingency fund. By the end of 1946, however, the pool had suffered no net losses. The contingency fund had actually not been called upon, and was consequently terminated. On orders from the Finance Ministry each of the German general insurance branches made its own arrangements with Austrian companies for 100% reinsurance cover. In life insurance a somewhat different situation was found. No Austrian company was willing to assume responsibility for the uncovered liabilities of any German branches. The companies were willing, however, to give hol ders of German policies preferential treatment if they bought new Austrian policies. In December 1946, the public administrators of the branches of German life insurance companies were instructed to send circulars to their policyholders, which pointed out the uncertain ultimate fate of their German policies. Policyholders were advised to take advantage of the special low rates offered by Austrian companies. The latter sent their agents to such policyholders to sell the proposition, each company limiting its activity in this field to specific groups of policyholders, according to a prearranged agreement. At the same time, the public administrators of the Austrian branches of German general insurance companies also informed their policyholders that they were free to cancel their German policies and take out Austrian policies. (Under Austrian law property insurance cannot ordinarily be cancelled by the insured, and is usually written for a ten-year period.)

These measures, of course, did not apply to the few German branches which were in relatively good shape financially. Only 5 life branches and 7 general branches were, however, unaffected. Sickness insurance was the third field in which the Austrian branches of German companies posed a problem. This was solved by the adoption of a plan whereby each of the 4 Austrian companies selling sickness insurance assumed liability for the obligations of a group of German branches. Gradu ally these companies sought to wean the policyholders away from their former connections and to take out memberships with them. Late in 1947 the Austrian Government took another step toward the dis solution of the German life insurance branches in Austria. The public adminis trators of such concerns were forbidden to make any further payments to policyholders after 31 December 1947, on the ground that the financial con dition of these branches had deteriorated to the point where further payments to current beneficiaries would jeopardize the acquired rights of other insured persons whose policies had not yet matured. By the end of 1947 it was clear that the activity of the Austrian branches of German companies would steadily approach the vanishing point. No plan had yet been developed, however, for assisting Austrians holding Ger man policies to collect the surrender values which they had built up through years of premium payments. Nor was any solution in sight in the question of the healthier orphans. They continued to operate, selling new policies, collecting premiums, and showing good profits. No one knew, however, what would be done about their German-held shares, and their visible hard assets were not nearly large enough to cover their potential liabilities. Oe. V. A. G. The"OesterreichischeVersicherungsAktien-Gesellschaft" (or OeVAG) has had a turbulent history. It was created in 1936 to take over the Austrian life insurance business of the Phoenix Company, a large concern with sub sidiaries in a number of European countries. The Phoenix had crashed earlier in the year, leaving a deficit estimated at S 250 million for the Austrian life business alone. (The general insurance business of the Phoenix in Austria was taken over by another company.) The OeVAG stockholders were mainly Austrian banks and insurance companies. All life insurance companies in Austria were federally taxed to support the Phoenix fund, which constituted OeVAG's principal cover. Phoenix Fund bonds amounting to S 250 million were sold in the open market. While OeVAG was created primarily to admin ister the old Phoenix policies, it also wrote new business.

11

After the Anschluss the Austrian stockholders were forced to sell their OeVAG shares to the Deutscher Ring, an insurance company owned by the German Labor Front. The Germans created a new Phoenix Fund to replace the old, and required the company to invest heavily in German government securities. After the war OeVAG resumed its old name and started doing business in their old premises (badly damaged by bombing and fire). The company prospered under energetic management, but its real status was obscured by two questions: a) Who owned OeVAG? The original shareholders requested restitution on the grounds that they had sold under compulsion. The Austrian Trade Union Federation claimed the shares as restitution for assets carried off by the German Labor Front. But neither the Federation nor the original stock holders wanted to assume liability for OeVAG's deficit. b) What was OeVAG's position with regard to the old Phoenix policies? The company claimed that it had only a trustee's responsibility, which it could not be expected to meet so long as the Austrian Government did not re-establish the Phoenix Fund. The government did not share this view.

those countries by Austrian insurance companies and since lost through confiscation or nationalization. For the general insurance companies the great imponderable remains the question of the payment of the war damage claims in transport insurance. The pool organized by the German Reich is still receiving such claims. Whether a future German Government will recognize them is also highly uncertain. The remaining assets of the pool were estimated, at the end of 1947, to be sufficient to cover only about 25% of possible claims. Moreover, the question of compensation of assets held in countries now under Soviet domination remains unsolved. But on the whole, all things considered, a good future seems to be ahead for the general insurance companies.

Restoring the Austrian Currency

Background
The schilling, the monetary unit of the pre-war Austrian Republic, ceased to exist soon after the Anschluss. In March 1938 the Germans ordered all schilling currency to be exchanged for Reichsmarks in the relation of S 3 to RM 2, and all bank deposits, debts, and other obligations to be converted into the Reichsmark equivalent on the same basis. During the Anschluss period the financial policy of the German Government, and abnormal wartime conditions resulted in a large increase in the circulation of Reichsmarks in Austria. In November 1945 the volume of German currency in circulation was approximately RM 7.7 billion, and Allied military schillings accounted for an additional one billion. In 1937, the last pre-Anschluss year, Austria's currency needs had been met by a schilling circulation averaging 909 million. Thus the new Austrian^Republic began life with a huge circulation of currency consisting largely of the worthless paper money of a defeated foreign country without a government, and of emergency currency issued by the occupying powers, which was not backed by gold and engendered no faith. One of the first steps in Austria's financial rehabilitation, therefore, was obviously that of providing the new Republic with a currency of its own. The original Austrian government plan was to utilize that portion of the German bank note reserves of the Austrian National Bank which had been "borrowed" from the Soviets, who had seized the Reichsmark reserves of the banks,

Outlook
The future of Austria's insurance institutions is dependent on a number of factors. Currently they are doing good business, and prospects for the future are favorable. All of them, however, carry on their books large amounts of German government bonds, as well as other claims against Germany. In what manner these debts will be paid remains to be seen. It may be presumed that the Austrian Government will assume a part of this German debt, at least to the extent that some of the German government bonds represent old Aus trian government obligations converted into Reich bonds by the German Government. It is also quite possible that the life insurance companies and their policyholders may be obliged to make up part of the deficit by means of taxation. A general write-off of policy face values and redemption values, coupled with carry-backs in maturity dates, will place a further part of the burden on the policyholders. There is a slender hope that a future German State may recognize at least part of the Nazi debt toward Austria. But this is still within the realm of conjecture, and there is no immediate comfort in such a possibility. There is also a similar hope that Austria's other neigh bors, particularly Hungary and Czechoslovakia, may offer compensation for the losses of the branches, subsidiaries, and other assets formerly held in

12

(including those of the Reichsbank branch in Vienna) when they entered Austria. It was planned to "nostrify" these German bank notes by over printing them with the seal of the Austrian National Bank.

The First Currency Conversion

The "nostrification" plan of the National Bank was never carried out. In stead it was decided to give Austria her own national currency. Schillings were to replace Reichsmarks at the earliest possible date. The US plan was to call in the Reichmarks and issue Allied military schillings, allowing each holder of Reichsmarks to exchange up to RM 150 for Allied military schillings in the same amount. The remainder of each person's Reichsmarks holdings would be surrendered for a receipt which could be used to open a bank account or to make a deposit to an account already existing. Of this new account, or new deposit, only 40% would be available for transfer and 60% would be blocked completely; no cash withdrawals would be allowed except for certain contingencies and for necessary wage payments. The plan also provided for the extension into the British, French, and US Zones of the system of blocking of bank deposits already in effect in the Soviet Zone. In the US Zone, for example, all old deposits existing before the liberation of the zone would be blocked except that 40% could be transferred. New deposits made after liberation of the zone and before the conversion would be 100% free both for cash withdrawals and transfer. Under the American plan the conversion into Allied military schillings would be followed by a conversion into Austrian national schillings as soon as a sufficient supply of new notes could be printed. The printing of schilling notes began in the summer of 1945 but proceeded very slowly. Paper, ink, printing presses, power and workers had first to be brought together. In the chaotic conditions prevalent in Austria in the summer of 1945, none of these was easy to obtain. Nevertheless, by the end of November about 3 billion schillings worth of new schilling notes were in the hands of the National Bank, representing about half the total agreed upon as being necessary be fore a change-over to an Austrian national currency could be made. After a long series of meetings in the Finance Committee of the Allied Commission, the Soviet Element agreed, on 27 September 1945, to the US plan for an immediate conversion of Reichsmark into Allied military schil lings. On 4 October 1945, however, the Soviets suddenly withdrew their assent to this plan and demanded a direct conversion into Austrian national schillings. Again meeting after meeting was held at all levels of the Allied

Commission and its subordinate committees and working parties, but the Soviets refused to alter their position. The Western Elements believed that the Soviet plan would mean a delay of four or five months, and new currency was urgently needed. The French then assumed the role of mediators, and suggested a compromise plan. Reichsmarks were to be exchanged for Austrian national schillings so far as the supply of the latter would permit, and the remaining Reichsmarks were to be exchanged for Allied military schillings. The Western Allies were prepared to accept the French plan, but again the Soviets refused to agree. Again and again negotiations broke down on the question of how much of the new currency would be allocated to the occupying powers for funds to pay their troops and meet the other costs of occupying Austria. Finally a compromise was agreed upon. Reichsmark notes of RM 10 or larger were to be exchanged for new Austrian national schillings, but the smaller Reichsmark denominations were to remain in circulation. Allied military schillings were also to be converted on the same basis. The conversion plan, in the form of a law passed by the provisional Austrian Government, was approved by the Allied Council and put into effect in the period from 13 December to 22 December 1945.

Provisions of the first Post-War Currency Conversion Law (Schillinggesetz)

Under the Schillinggesetz of 30 November 1945, Reichsmark bank notes and Allied military schilling notes in denominations of RM/S 10 and up, were declared no longer to be legal tender in Austria after 20 December 1945. The schilling replaced the Reichsmark as the official currency unit, and all sums previously stated in Reichsmarks were restated in schillings, the figures being unchanged. The old Reichsmark notes and Allied military schilling notes were exchanged for new schilling notes in the ratio of 1:1, up to S 150 per person, during the conversion period. Any excess over S 150 per person was credited to the individual as a deposit to a savings account, or simply noted on the conversion form which everyone executed during the conversion period. Corporations and other non-physical persons had to convert their money into bank deposits. If they had no bank accounts, they had to establish them for this purpose. A complicated set of provisions, embodied in the law, concerned bank deposits made before 3 July 1945, from that date to the beginning of the conversion period, during the conversion, and afterwards. These provisions 13

grew in part out of the fact that the Soviets, while in sole control of Vienna, had blocked all bank deposits made before 3 July 1945 in Vienna and the Soviet Zone of Austria. The blocking was accomplished under the Schalter gesetz, a Soviet-sponsored measure adopted by the provisional government before it was recognized by the other occupying powers. This law was not recognized in the Western Zones. In order to equalize the treatment of bank accounts as between the various zones, the Schillinggesetz provided that the remaining balances of deposits made in the three periods indicated above be divided as follows:
, OTT mirDeposits in Vienna and the Soviet Deposits in the three Western

ceptions to the regulations to be made if it could be shown that the funds to be unblocked were to be spent for reconstruction or other purposes beneficial to the economy.

Effects of the First Currency Conversion

At long last Austria had its own currency once more. After seven years of annexation and war, the Austrian schilling was again a working, useful coin instead of a collector's item, of interest only to numismaticians. This fact alone gave a tremendous psychological boost to the Austrian population. Technically more important was the fact that the volume of currency in circulation was drastically reduced. In the summer of 1945 total monetary circulation was about 8.7 billion (RM and Allied military schillings). The conversion left only about S 3.3 billion in the hands of the civilian popul ation and the occupying troops. Of this total, about 1.5 billion were allocated to the occupying powers. The danger of a runaway inflation was thus temporarily lessened (see St. A. Table 1). The currency reform was carried out in the nick of time. A thriving black market had sprung up immediately after the occupation of the country and, by December, had achieved fantastic proportions. The danger of an uncontrolled inflation was present for two principal reasons. First of all, there was too much money in the hands of the people for which, because of a great scarcity of food and all types of consumer goods, there were too few legitimate outlets. Secondly, holders of preconversion Reichsmarks had little or no confidence in the ultimate value of this German money, although nearly everyone expected the government to "do something" about money. Consequently prices, except for officiallycontrolled prices of rationed commodities, rose to unprecedented heights, the longer the conversion was delayed. The average Austrian citizen, however, soon dropped out of this fantastic market and resorted to barter to obtain necessities not available on his ration card, as well as to obtain commodities, particularly food, appearing on the card but not actually to be found except in black market deals. Jewels, china, paintings, silverware, and even large pieces of furniture, somehow found their way out of Vienna and other Austrian cities into the cottages of farmers who had food for trade. The currency conversion did not end the black market or stop the illegal "rucksack" (or haversack) trading of the city dwellers. It did stop, temporar ily, the rising inflationary spiral in the black market and caused the price trend to turn downward. This was especially noticeable in the case of hard

Before 3 July 1945 Old accounts Old blocked accounts

zone 40% 60%

Zones 28%a 42 %a

From 3 July to 30 November 1945 New accounts 40% New blocked accounts 60% Deposits during the Conversion Period Conversion accounts 40% Conversion blocked accounts 60%

12%a 18 %a 40% 60%

The regulations regarding the use of the various blocked accounts were at first very strict. Only the so-called new accounts could be freely drawn upon. Persons without adequate income who, for reasons of poor health, advanced age, or other disability, were unable to find employment, could withdraw up to S 150 per month from their blocked or restricted accounts. Withdrawals to pay wages, rents, insurance premiums, and the like, could be made from old accounts and conversion accounts up to certain specified monthly limits. The "conversion blocked accounts," re presenting 60 percent of deposits made during the conversion period, could not be touched at all. Immediately after the conversion period, on 23 December 1945, a law was passed under which the restrictions on the use of blocked accounts were some what relaxed, and the Finance Ministry was authorized to permit exa) In the absence of records it was assumed that 70 % of the balance of de posits in the three Western Zones on 30 November 1945 were made before 3 July 1945.

14

foreign currencies, such as the US dollar. Expressed in terms of Reichsmarks or schillings, the dollar rose in value during October and November 1945, weekly quoted prices running 175, 190, 210, 260, 300, 340, 400, 430 and 800. The last figure was for 7 December 1945. In the following week the dollar fell to 500, and continued to fall to 160 and 140 in the two weeks immediately following the conversion period (see Fig. 9 and St. A. Table 13). In contrast to the falling prices on the black market, legally controlled prices moved upward slowly but steadily during the period following the first currency conversion. Wages rose at the same time, but less rapidly. Farm prices failed to keep pace, and farmers declared that the poor harvest, plus rising prices and wages, made it impossible for them to cover their production costs. In the meantime the amount of money in circulation, which had been drastically reduced by the currency conversion, slowly rose again. Payments to the occupying powers for occupation costs and releases of blocked bank accounts accounted for the rise. The total circulation (cur rency in circulation, plus free bank balances with the Austrian National Bank) rose from S 7,162 million in December 1945, to S 9,182 million by June 1946. The Austrian government took action to limit the "currency overhang" in September 1946. A re-examination resulted in the transfer of S 600 million from the free to the blocked accounts of the Austrian National Bank, and treasury bills in the amount of S 625 million issued to meet occupation cost payments, were purchased by banks out of their free accounts. Even after these measures, however, there was still much more money in circulation than was actually needed. Legal prices continued to rise (see St. A. Table 14). Workers complained that wages were not keeping up with prices, and farmers renewed their demands for higher legal prices for their products. No action was taken until August 1947, the government being unwilling to authorize any radical changes in the cost and price structure. In August 1947, however, prospects of another poor harvest caused farmers to bring the matter up for urgent consideration. An agreement, known as the "Price and Wage Agreement," was reached between representatives of agriculture, industry and labor. Wages and prices were fixed at new higher levels, farm prices rising by 50 to 60 percent, prices for industrial products by 30 to 50 percent, and wage rates by about 45 percent. Shoving wages and prices up abruptly did not result in stabilization or solve the problem of the currency overhang. Production was not greatly stimulated, and producers tended to hoard finished and semi-finished goods in anticipation of further price increases, with the result that Austria's com petitive position in the export market suffered.

In the meantime, Austria's financial experts had begun planning for a second currency measure. The trade unions urged the government to put the plan into effect. Rumors of this reached the general public, resulting in further hoarding of goods and unwillingness to sell for schillings. Since it was known that the wage-price agreement had an effective period of only 3 months, it was assumed that the expected currency reform would be announced when this period expired. This did not prove to be the case, however, since no currency reform plan that was agreeable to both of the major political parties could be worked out in time. The wage-price agreement continued in effect, by suffer ance, until the monetary reform had been carried out, and even later. In the meantime confidence in the currency deteriorated. Durable goods almost disappeared from the market, and black market prices for jewelry, paintings, and other valuables rose as possessors of cash, most of them black market operators themselves, began a flight from the schilling. On 20 November 1947, the "Currency Protection Law" was passed in Parliament. Austria's small Communist Party which had been most vociferous in denouncing the government's lack of action on the currency question, voted against it, and Austria's single Communist Minister resigned from the Cabinet in protest. Unanimous Allied Council approval of the new law was necessary if it were to take effect immediately. Otherwise, it would become effective at the end of a 31 day period after passage, provided the Allied Council did not unanimously disapprove. For a time it seemed that the Soviet Element would withhold approval, but the Austrian Government succeeded in obtaining Soviet consent to the law on 4 December 1947, and actual conversion began on 10 December, 21 days after passage of the law. The agreement with the Soviets provided for the exchange of 490 million of new schilling notes for S 133 million worth of old notes, and the Soviets agreed to drop their claim to RM 600 million which they had "loaned" to the Austrian Government in the early days of the occupation.

Features of the Currency Protection Law

The Currency Protection Law provided for an exchange of old schilling notes for new during the period from 10 to 21 December. In general the exchange was at the rate of one new schilling for three old ones, except that everyone could exchange 150 old schillings at 1:1, and farmers received a 1: 1 ratio for old schillings up to the value of the crops they had delivered at legal prices after 30 June 1947. Bank deposits blocked under the Schilling Law of December 1945 (the first currency conversion law of the new Austrian Republic) were completely written off under the Currency Protection Law.

15

Accounts restricted under the Schilling Law were converted into rights to government bonds. Deposits made after December 1945 were, however, credited at their full value. One-half of such deposits was blocked, 25 percent for six months and the remaining 25 percent for nine months. Deposits of pub lic bodies were devalued by 25 percent, and another 25 percent of such deposits was blocked for one year. All currency payments into bank accounts after the law was announced and before it took effect were treated like cash and devalued by 67 percent. An odd feature of the law was that debts of old schillings could be paid at par until the actual conversion operation began. Thus the Austrian public was treated to the rare spectacle of debtors remorselessly pursuing their creditors and forcing old schillings into their unwilling hands. Tax collectors, too, were eagerly sought out and urged to accept old schillings in settlement of long overdue assessements, and many taxpayers tried to make advance payments of future taxes. The insurance companies also experienced a rush of premium payments. Because of this loophole in the law, and because each of the occupying powers received 12 million new schillings in exchange for equal amounts of old schillings held by members of the occupying forces, plus the fact that 490 million new schillings went to the Soviets, the currency conversion did not achieve as large a reduction in monetary circulation as had been hoped. Nevertheless, note circulation dropped to about S 3,400 millions from the peak of 6,200 million reached at the end of October 1947. Total circulation was cut by about 37 percent. Bank deposits in banks other than the National Bank were written off in the amount of S 10,700 million, leaving only 4,800 million in such accounts. Most of the reduction (92.4%) was in the old accounts which had originated before the passing of the Schilling Law in 1945. The write-off under the Currency Protection Law had a widely different effect on deposits in various types of banking institutions (see St. A. Table 2). While the commercial banks also carry savings accounts, the great majority of savings accounts are carried with the savings banks. The total deposits of these latter banks were cut more severely than the total deposits of the commercial banks. Since savings bank deposits are the customary means of investment for the so-called "small man", it follows that this class was hit more severely than other classes by the Currency Protection Law. An equaliz ation of this sacrifice will be attempted in the capital levy, the preliminary announcement of which was embodied in the Currency Protection Law. Before the currency conversion of December 1947 the commercial banks had smaller total deposits than the savings banks. Through the conversion,

however, they obtained a decisive lead over the savings banks in this respect. The Postal Savings institution also had a 10 percent larger share of total deposits after the conversion than before. The private bankers' insignific ant share in total deposits remained unchanged. Under the Currency Protection Law the banks were required to credit the Federal Treasury with an amount equal to the gain they made by the reduction in their deposit liabilities. This gain amounted to S 10.7 billion. The Federal Government thus far has announced no new measures regarding the values the banks will be required to deliver to the Federal Treasury in order to extinguish this debt. One measure already announced namely, the 80 % reduction in the giro accounts of the banks with the Austrian National Bank gained approximately S 2,700 million for the Federal Treasury. The two-thirds reduction in deposits made between 12 November and 10 December 1947 netted S 276 million. An interesting side light on the conversion is seen in the changes in the volume of bank loans in the crucial period between the announcement of the law and its effective date. Total bank loans outstanding, amounting to S 2,113 million as of 12 November 1947, decreased by 25% to S 1,590 million as of 9 December 1947. By 24 December 1947 the loans had increased again to S 1,917 million. The loophole in the Currency Protection Law, permitting payment of debts in old schillings, was thus apparently used to repay bank loans in the amount of S 523 million.

Effect of the Currency Conversion on the Austrian Economy

In the closing days of 1947 there was little change in the Austrian price structure. This was because the conversion operation took place just before Christmas. Everyone could do his pre-Christmas buying with old schillings, or with new ones, if he already had them. Prices in retail stores were quoted in both old and new schillings, new schillings having 3 times the purchasing power of old ones. The long Austrian Christmas holidays meant a virtual cessation of business until the beginning of January, but it was already clear by the end of 1947 that the currency conversion had brought a new confidence in the Austrian schilling, both externally and internally. Quotations on the Zurich currency exchange, the only organized external market for Austrian schillings, rose sharply immediately after the conversion. Within Austria, prices for all types of foreign currencies tumbled. The US dollar, which had sold for S 125 in October 1947, and had risen temporarily to 175 in November, as rumors of the impending conversion grew, dropped to-S 85 in December.

16

Foreign Exchange
General
Since the establishment of the Austrian Republic in 1918, the country's economy has always been dependent on the importation of certain raw mater ials, semi-finished and finished goods, and, particularly, food. Under such circumstances it was essential for the country to maintain a supply of foreign exchange to pay its trade balances. Even though the situation in the 1920's when a changeover of the whole economic system from an empire economy to that of a small republic was carried out was extremely difficult, ne vertheless, Austria had, by 1937, achieved a favorable balance. Trading in foreign currencies within the country was unhampered by legal controls, a situation in striking contrast to that prevailing in almost all other Central European countries at that time. The situation in which Austria found her self in May 1945, however, was desperate. The carefully accumulated foreign exchange reserves had been taken away by the Germans in 1938. After the Nazi defeat there was no foreign exchange left in Austria. Moreover, the after effects of the war rendered more acute the needs for imports. Production equipment of practically all kinds was in poor condition and in urgent need of replacement; domestic food supplies were poor, necessitating large imports of food; transportation equipment needed repair and replacement. These and other war-born conditions created a great need for imports of many varieties. Whatever foreign trade there was, had to be carried out strictly on a barter basis. In fact the country could not have existed if it had not been for the help given to Austria by the Western Allies and later by UNRRA. It became a prime necessity for the Austrian economy to build up a foreign exchange reser ve to be utilized to pay for at least the most essential imports.

government possessed no foreign exchange instruments whatever. This desperate situation found its clearest expression in the fantastic quotations for foreign currencies on the black market. During December of 1945 as much as RM 800 were paid for one dollar. During the first few months of the occupation, all foreign trade was control led on a zonal basis by the military governments of the four occupying powers. By quadripartite agreement, military exchange rates were established for all zones late in 1945. The rates established for the principal currencies were: RM 10 to the dollar, RM 40 for one pound sterling, and RM 2.3 per Swiss franc. After the conversion from Reichsmarks to schillings in December 1945 the same rates applied. (The Russian rubel is an internal currency. Soviet occupation policy has been to appropriate local currency for the amounts needed.) For the first year of its existence, the Foreign Exchange Department of the National Bank operated under the German Foreign Exchange Law*(Devisen gesetz) of 12 December 1938. The principal provisions of this law were: (1) the Reichsbank (changed to Austrian National Bank) was the sole agency for en forcement of foreign exchange regulations, (2) all movements, value, and uses of the national currency were subject to regulations by the National Bank, (3) the national currency was an internal currency only, (4) the National Bank was the sole clearing house for foreign exchange transactions. On 25 July 1946 the Austrian Parliament passed a new foreign exchange law to take the place of the German legislation. This new law retained most of the basic features of the former German law and it became effective on 14 September 1946. With the passage of this law, Austria obtained at least partial control as far as foreign exchange transactions were concerned. The military rates mentioned above became "provisional official exchange rates/' These rates were still effective at the end of 1947.

Foreign Exchange and Prices The Remedies

Fully realizing the seriousness of the situation, the Austrian authorities as soon as possible after the establishment of the Provisional Government started out to rebuild a foreign exchange reserve. In July 1945 the Austrian National Bank was reestablished as the official central bank of Austria. It was entrusted by the provisional government with the handling of foreign exchange transactions. At the time of its re-establishment, however, the bank had neither buildings nor a staff, while communication facilities were almost non-existent. The government had no means of controlling currency movements across Austria's international borders. Moreover, the The domestic price and wage levels in Austria at the end of the war had largely remained at the 1938 levels (see pp. 19 f.). No change was made in this situation in December 1945, when currency was converted and the schilling was substituted for the Reichsmark at the rate of 1 :1 (see pp. 13 f.). The establishment of a rate of exchange of S 10 to the dollar which under valued the schilling in terms of its internal purchasing power at official prices, actually had the effect of lowering the prices of Austrian goods on the world market, since the 1938 internal wage and price levels had been related to the dollar at a 5 : 1 exchange rate. Therefore, Austrian internal prices, which made up the cost factor of the world market prices of Austrian goods,

17

were temporarily fixed at a low pre-war level, while the international value of the schilling had been cut in half. This enabled Austrian exporters to offer the few goods available for export at prices well below the average world levels, while still maintaining large profits for themselves. The high profits realized by exporters tended to create an excess of buying power over goods available, in the hands of a few individuals. On the other hand, imports had to be paid for at high world market prices. The same forces which allowed Austrian exporters to undersell foreign competitors made foreign goods extremely expensive for Austrian importers. (An attempt was made to establish a fund called the "Equalization Fund" for the purpose of subsidizing vital imports out of excess profits, but lack of cooperation on the part of Austrian business men caused the plan to fail.) Since many of the cost-of-living items were imports, with many others directly dependent upon imported raw materials, the cost-of-living index rose, bringing on demands for wage increases which, in turn, increased the cost of Austrian goods. An attempt was made to restore the balance of the pricewage ratio by means of a price-wage agreement in August 1947 (see p. 15). By the end of 1947 the internal prices of many commodities had risen to the world price level, while in some instances they had risen above world price levels. When this development had come to a close the country's business men found it more and more necessary to return to sound commercial prac tices in order to compete successfully on the world market.

Increase in Foreign Exchange Holdings

In 1946 Austrian foreign trade was insignificant both in value and in volume. Moreover, the commercial import-export balance showed a deficit of 161 million schillings. Much of this amount was covered by promised future exports to creditor nations, with payment of the rest deferred under trade agreements concluded with other nations. Thus, by the end of 1946, the Austrian National Bank had, in spite of the actual trade deficit, amassed sufficient foreign exchange reserves to inaugurate a trade policy more satis factory than the direct barter transactions which had comprised the major portion of Austria's foreign trade through 1945 and 1946. In 1947 a very considerable increase occurred in both volume and value of foreign trade. But there was also an increase of the deficit of commercial imports over exports to S 349 million (about 115% above 1946). And even in 1947 barter arrangements still represented approximately 50% of all Austria's trade with other countries.

Yet the trade figures quoted above apply only to commercial trade trans actions. Actually, whereas Austrian commercial exports in 1947 balanced 70% of commercial imports, when compared with total imports including re lief shipments, they offset only 30% of the value of imported items. Never theless, Austria was able to accumulate an increasing amount of foreign ex change during 1947. Trade agreements with various countries which allowed a deferment of payments aided in this development. There was also a sharp increase in exports during 1947. They rose from S 23.5 million in January to a total of S 125.1 million worth of goods shipped out during December. The improved situation is brought into relief by a comparison of figures for 1946 and 1947. At the end of 1946, total foreign exchange holdings, half of them in the hands of the Austrian National Bank, the other half held by private banks, firms, and individuals, amounted to 2.8 million dollars (at official rates). At the end of 1947, total holdings had increased to 10.6 million dollars. Sixty-three percent was in the form of dollar instruments or credits (see St. A. Table 1). An examination of the breakdown of foreign exchange receipts and expendi tures during 1947 shows that commercial trade produced a deficit of 6.2 mil lion dollars. This was offset, and a surplus was produced by invisible exports listed as "Services" and by "Payments" which included payments by the US Element for its share of occupation costs beginning 1 July 1947, relief payments earmarked for the purchase of coal, and by transit trade balances. Relief imports of physical items are not shown in the breakdown since there were no payments to or by the Austrian Government for them.
FOREIGN EXCHANGE RECEIPTS AND EXPENDITURES IN 1947 BY MAIN CATEGORIES (Million Dollars) Receipts Trade . . Services . Payments Travel Total . . Balance . . . . . . . . . 26.8 13.6 2.8 0.5 Trade . . Services . Travel Total . . Expenditures 33.0 1.9 1.0 35.9

. . . 43.7 . . . 7.8

Dollar payments by the US Element for the schilling costs of the occup ation and for US government obligations to former Austrian prisoners of war (included in "Services") represent roughly the amount of the surplus.

18

accrued during 1947. Cumulative payments to former prisoners of war totaled approximately 5.4 million dollars at the end of the year.

AUSTRIAN COST OF LIVING INDEX 1 9 4 i 1 9 4 'r

APRIL 1945=100

Summary
Beginning with nothing, Austria has succeeded in two and a half years in building up a foreign exchange reserve with an approximate equivalent value of 10.6 million dollars, compared with over 30 million dollars held by the National Bank alone at the end of 1937. This was made possible only through relief action and credits on the part of the United States, through relief and credits granted by Great Britain, and through UNRRA aid. The rehabilit ation of this phase of the economy has, however, been hampered to a great extent by the fact that the USSR has deprived Austria of a considerable portion of her foreign exchange sources, especially her oil fields and a number of industrial plants, under the guise of "German External Assets". This has had the double effect of preventing the Austrian economy from benefiting from the export of a considerable portion of her productive capacity, as well as obliging the government to pay out foreign currency for the importation of certain necessary items such as oil which Austria produces but which the Soviets withhold for their own use, or export on their own accountNevertheless, it can be confidently expected, that with a rising volume of foreign trade the foreign exchange reserves of the. country will increase under the careful management of the Austrian National Bank.

_
. .

- -

/ /
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

APR MAY JUN JUL AUG SEP OCT NOV DEC SOURCE: AUSTRIAN INSTITUTE FOR ECONOMIC RESEARCH

Figure 6

Price Stabilization
Austria's Post-War Living Standards
The average Austrian housewife, forced to pay about three times as much for her small ration of groceries in December 1947 as she did before the war, accepted this fact with the vague realization that it was just another symptom of difficult times. In actual fact she was helping to pay for the cost and consequences of the war. Between the Anschluss and the end of the war, little change had taken place in the cost of living in Austria. The index published by the Austrian Institute for Economic Research changed only fractionally between April 1938 and April 1945. From April to May 1945, the first full month after the re-establishment of an independent Austria, the index began to advance

actively. By December 1945 the cost of living series, measured on an April 1938 base, was about 25% higher than it had been in the pre-war period. In December 1946 it was about 50% higher and by the end of 1947 living costs were approximately 3.5 times greater than in the pre-war period (see Fig. 6 and St. A. Table 7). Wage rates also advanced to a certain extent. Statistics in this area are somewhat less thorough, but again measured on a pre-war base, wages in December 1947 were no more than three times their pre-war level. This disproportionate increase in living costs and wage rates reflects a contraction in Austria's real living standard. In actual fact this contraction was considerably greater than the above statistical comparisons would suggest. Numerous commodities which had been available, at moderate prices, prior to the war, were simply non-existent in the post-war period. Moreover, such articles as were available were almost uniformly of inferior quality. These factors are not reflected in the cost of living index. In reality the average Austrian wage earner experienced a very sharp decline in living standards during the post-war period (see Fig. 7 and St. A. Tables 810 & 18).

19

COMPONENTS OF COST OF LIVING

(APRIL 1945 = 100)

INDEX

1946-1947

Why have Austrian Prices Increased?

As previously indicated, the causes of Austria's reduced living standards, which are only partially reflected in the sharp advance in retail prices as compared to increases in wage rates, are to be explained in terms of the war. In almost all instances production costs advanced substantially while the volume of output contracted. Many of the nation's industrial firms were badly damaged through bombing, and under German rule factories were run at maximum capacity with little concern for repairs or replacements. A number of industrial operations which had previously been done by machine had to revert in the post-war period to hand operations. More over, labor was less efficient than it was before the war. The average worker in Austria today is somewhat older than he would be in normal times. Austrian manpower losses were concentrated in the most productive age group. The insufficient food ration further decreased labor's efficiency. Thus, while forced to depend more largely on hand labor, Austria found her work force, including both men and machines, substantially less efficient. Although it is difficult to measure worker efficiency, it has been estimated by various sources that the nation's labor productivity in 1947 was only 50% to 60% of its pre-war state. Another factor contributing to the increases in Austria's prices has been the withdrawal of subsidies. When Germany absorbed the Austrian economy in 1938, she found it expedient to have a single price structure for the whole of Greater Germany. Austrian prices, which had been higher than those prevailing in highly industrialized Germany, were accordingly reduced. This was accomplished by means of a far reaching subsidy program. Austria therefore evolved an unrealistic cost-price structure; wherever production costs were not covered by prices the deficit was made up by government payments. With the reestablishment of Austria's independence in 1945, almost all industrial subsidies fell away. Price adjustments sufficiently high to cover production costs were allowed. Agricultural products continued to receive subsidies for a short period. Inasmuch as the Austrian worker was very much dependent on the price of food, it was feared that a too sudden withdrawal of bonuses in this area would precipitate wage demands and aggravate price pressure. By mid-1946, however, almost all food sub sidies had also been withdrawn. The decision to discontinue subsidy payments was based chiefly on the Austrian Government's desire realistically to relate costs and prices as quickly as possible, and thereby lay the ground-work for a sound economic

^ ^ E

AND DIVISION OF

CONSUMER BUDGET-I947
DECEMBER DECEMBER 1946
1947

PREPARED BY U.S. ALLIED COMMISSION AUSTRIA

Figure 7

Perhaps a good notion of the Austrian standard of living shortly after the war can be gathered from a study made by the International Labor Office. This office compiled a list of products purchased by a typical Austrian family in 1937 and the amount thus spent was compared with the sum that would have been necessary to buy the identical products in the winter of 1946. This calculation included both legal and black market prices, since most of the goods necessary to duplicate 1937 living levels were available only on the illegal black market. For example, a pair of mens' shoes which in 1937 sold for approximately S 25 was available in the closing months of 1946 for about S 800 to S 1000, while a meter of wool cloth which sold customarily for S 20 to S 25 was now quoted as high as S 1500. In the food field the price inflation was somewhat less pronounced but illegal quotations were still extremely high (see St. A. Table 12). According to this study it would have cost the Austrian family approximately 200% more to live in the winter of 1946 on a level comparable to that which he experienced in 1937.

20

development. No less important were budgetary considerations. There was much reconstruction to be done and the Austrian Government felt that the money expended for the support of the price structure could be more efficiently employed in other fields. There are, of course, many other factors which contributed to higher production costs in the post-war period. Transportation rates were advanced and expenditures for transport increased further on account of the war damage sustained by the railroad facilities. This often resulted in delays and in longer routing of shipments. Furthermore the prices of raw materials coming from abroad had also risen, while shortages of power, especially during the winter months reduced working time. The aggregate sum of these various factors reduced Austria's production rate and resulted in a noticeable increase in unit production costs.

The Black Market

The facts and figures quoted above are limited to Austria's legal economy. These include only the minimum products issued on a rationed basis to the population, as well as rent, various incidentals, and services. But life on the legal ration was hard and many persons found it necessary to supple ment their normal rations with purchases on the black market. Practically every Austrian family since the end of the war has made some small "illegal" purchase. In many instances such activity constituted merely a barter transaction. For example, families or individuals who owned some personal household possessions, which they were able to spare, would exchange them for some other items not legally available but necessary to their everyday life. This type of exchange was accomplished by high schilling values set on the products, sold and bought, but the effect was largely that of a transfer of goods. Hence, where non-food items were involved, this type of barter cannot be considered to have had too bad an effect on the economy. In the food area, however, it tended to dissipate the total Austrian availabilities resulting in an inequitable distribution and forcing an overall low ration. But black market activities, unfortunately, extend far beyond barter and have invaded the legal price and rationing structures. The effect on food distribution and prices has been most distressing. Many items such as meat, butter, etc. which were legally practically non-existent in the larger cities could be easily obtained on the black market. These products were fre quently available from domestic farm sources or from UNRRA and military stock piles. Yet all food should have been sold through established rationing

channels at prices consistent with the incomes of Austrian wage earners; instead some of it was diverted to the black market because of the very high prices offered in that area. Similarly, as manufactured goods slowly became available, a large proportion of the supply was sold illegally. However, since January 1946, the black market prices of both food and semi-luxuries have declined sharply (see Fig. 8). This decrease can be explained by the gradual improvment in economic conditions which have occurred since the extremely difficult and disorganized situation which followed the collapse of the German army. Also of importance is the government's currency conversion operations, which took place in two steps, the first at the end of 1945 and the second in the closing weeks of 1947. Since the end of 1945 the general trend of black market prices has been downward, despite occasional advances which can be explained in terms of fluctuating pressures or speculative developments. The behavior of this market can be regarded as a barometer of general improvement, for declining prices reflect either an increase in the availability of goods or a reduction in monetary circulation. The latter, in terms of Austria's post-war fiscal situation, is also to be regarded as favorable. As the black market price structure begins to approach the legal level, the incentive for the illegal diversion of goods is reduced, and, accordingly, a large share of the nation's production is equitably distributed. This, in turn, has a further deflationary effect on black market prices. Such a tendency, of course, could increase legal availabilities, permit an expansion in the ration, and in general con tribute to a better standard of living, greater confidence in the currency, willingness to work and greater productivity. These have, in actual fact, been the tendencies since the end of the war. Viewed in retrospect, the movement of Austria's black market prices since the end of the war provides an interesting index of the nation's total economic development during that period. Immediately following the end of hostilities prices skyrocketed as a result of scarcity, general insecurity and confusion. They vacillated from day to day and almost from street corner to street corner, but the trend was sharply upward. In December 1945 the Austrian Government instituted its first currency conversion law. This action severed monetary connection with Germany and re-established the Austrian schilling currency. Second, and almost equally important, it reduced monetary circulation. Immediately following this fiscal reform, prices fell sharply. Using the January 1946 level as 100, black market prices in the last quarter of 1945 had fluctuated between 130 and 150. In the first half of 1946 the index moved around the 120 level, reflecting an in

21

CHANGES IN LEGAL AND BLACK MARKET PRICES

FOR SELECTED COMMODITIES-IN SCHILLINGS
JAN 1946 AND NOV 1947
IOOO

900

H |
800

LEGAL BLACK

PRICE MARK ET PRICE

I: ..!
700

V.*

600

creasing amount of money available among the population. During the summer, however, a larger volume of goods became available on the black market. This is to be explained by the growth of well organized black market rings which saw the opportunity to reap fat profits from a disturbed Austrian price structure. The harvesting of the first Austrian post-war crop also increased black market availabilities, since there was considerable illegal funnelling of local production. As a result of this increased volume of available goods, the black market index began to fall markedly in the last six months of 1946. In December, in spite of the holiday demand factor of that month, it finished at a level of 50. The first six months of 1947 also showed a relatively healthy development with the index between 50 and 40. In the latter months of 1947, however, monetary circulation, as a result of occupation costs and other factors, began to expand and in June the index once more began to climb. In the last few months of 1947 rumors of a currency conversion once again pressed the index above the 50 mark and in December it was over 60. This upward trend in the closing months of the year was a precurrency conversion trend, for in December the second post-war conversion took place (see Fig. 8 & 9 and St. A. Tables 1116).

500

*.v

...

.V.

Inflationary Pressure
... ... ...

.V.

400

300

!v!
*
*
200

*.v
100

V.*

V.*

\v j

.7

v:
NOV 1947 JAN 1946

V.*

*:
JAN 1946 NOV 1947 JAN 1946 NOV 1947 JAN 1946

vv
NOV 1947 JAN 1946

% v
NOV 1947 JAN 1946 NOV 1947

SHOES CLOTHING LARD PER PAIR PER m* PER kg

PREPARED BY US. ALLIED

SUGAR PER kg
COMMISSION

BEEF PER kg
AUSTRIA

BREAD
PER k

Before attempting to make any evaluation of the probability or danger of inflation in Austria, it is necessary to define the actual meaning of this term. In popular acceptance "inflation" denotes conditions similar to those that existed in Germany and Austria following the first world war. In that period prices increased to such an extent as to make paper money worthless. So rapidly did prices change that it became necessary for an employer to establish new wage rates at the beginning of each work day. In some in stances daily salaries were paid before the noon hour so that the worker could convert his earnings into goods during the lunch period since the purchasing power of the currency was certain to have deteriorated by the end of the day. The economic and social consequences of such a situation are apparent. First, there are pronounced decreases in production at the very time when more goods are necessary. Anticipating price rises, producers become reluctant to sell and as far as possible shift from the production of non durable to durable goods which can be hoarded: withholding of raw materials further decreases production. Farmers, rather than slaughtering, build up livestock herds which consume food crops at the expense of the food

Figure 8

22

supply of the population. Laborers, finding it difficult to live, strike for higher pay, further reducing production, and giving additional impetus to the upward movement of prices. In extreme cases goods become so scarce on the market, wage rates so meaningless, that production practically ceases. Such economic disruption has serious political and social consequences. Strikes, unemployment, and poverty, the by-products of inflation, threaten the stability of the government. A large segment of the middle class, dependent upon relatively fixed incomes, finds that its savings and annuities are wiped out, and those employed by non profit-making institutions educational, health, social, etc. which do not produce commodities which can be sold at inflated prices, find that their employers cannot afford to adjust wages. This class, which inevitably suffers most severely, is tradit ionally the bulwark of democratic government. The situation described above represents an extreme case of inflation, but the same conditions could be present in a milder form. In any event, it will be helpful to keep the above description in mind in determining the extent to which inflationary symptoms are already present in Austria. Unmistakably there were many factors threatening the stability of the country's price structure. Most important, the volume of money in cir culation far exceeded the amount of goods available (see St. A. Table 1). The magnitude of this so-called "inflationary gap" was difficult to measure with any accuracy, but it was indisputably very substantial. The Austrian Minister of Economic Planning, Dr. Krauland, estimated late in 1946 that monetary circulation had increased fivefold over that in 1937, whereas the amount of goods available was only 40% of that same year. This situation had improved considerably by the end of 1947, when the second currency conversion substantially reduced the volume of monetary circulation. (This problem is discussed in greater detail on pp. 15 f.) Other important inflationary factors were also present in Austria's post-war economy. War damage, to the extent that it decreases the nation's capacity to produce, prolongs the period of scarcity. So long as this situation prevails the population will be willing to pay high prices for the limited commodities which are available. War damage, as we have already seen, necessitates upward price adjustments to compensate for increased production costs. Such adjustments eventually result in an increased price level which, in turn, forces wage increases. This process has been going on since the end of the war and has resulted, as noted previously, in a 250% increase in the cost-of-living index coupled with a 200% rise in the average wage as of December 1947.

BLACK

MARKET DOLLAR RATE IN VIENNA 1946 - 1947

MONTHLY RATE IN SCHILLINGS
LEGEND : 1946 9 I 4 9 T

PER

DOLLAR

125

J JAN
MOTE ! * POST

FEB
CURRENCY

MAR
CONVERSION

APR
FIGURE

MAY

JUN

JUL

AU6

SEP
PREPARED

OCT
BV

NOV

DEC
COMMISSION AUSTRIA

US. ALLIED

Figure 9

Presence of occupation troops in Austria also makes stabilization somewhat more difficult to achieve. Requests by certain Allied powers for schillings to offset operating occupation costs increases note circulation while the demands for goods by occupation personnel has the effect of reducing the supplies available to Austrian customers. The black market is another threat to Austria's price structure. (This problem has already been discussed above.) The present currency exchange rate of 10 schillings to 1 American dollar also imposes a burden on the Austrian economy which is dependent on a well developed foreign trade. In terms of this official rate the average Austrian, in December 1947, earned approximately $ 60 a month. It is, therefore, extremely difficult for Austria to import and to sell these imports at existing maximum prices. The country must, at present, however, make sizeable importations of goods and materials from abroad. Despite these various pressures, the symptoms of inflation were consid erably less pronounced in the final six months of 1947 than they were in 1946. 23

Although there is a sizeable class of persons who live by black market operations who contribute no productive work, by and large the Austrian laboring population was well disciplined and has kept on the job. The free market value of the schilling has fluctuated sharply but by the end of 1947 the currency conversion promised to bring considerable stability in this area. The middle class, however, with fixed incomes, or those engaged in public services experienced a contraction in living standards which was considerably greater than that suffered by the rest of the population. Cash savings of most classes, moreover, were completely wiped out (see St. A. Table 2). In this social sense Austria has actually been through an inflationary period. Economically, however, the situation has been and continues to be reasonably well controlled. A quick historical review of developments will prove this statement. The inflationary factors in the Austrian economy were of course most pronounced in the closing days of the war. At that time production was completely disorganized and the currency was regarded by the general population as being almost worthless. While on the one hand no new goods of any quality were being made available, there was on the other a strong tendency to hoard. This situation was somewhat improved following the first currency conversion in December of 1945. Still, the re-established Austrian schilling was not immediately accepted by the population with any great confidence, since the whole economic and political future of the country was still too problematic. Nevertheless the new currency did represent an improvement. Goods became available on the black market against schilling payments and in very limited quantities but prices were exorbitant. The wheels of industry, although slowly and inefficiently, did once more begin to turn. On the whole little improvement could actually be noted during the first six months of 1946. A serious inflationary breakthrough was, however, prevented by a rigid government program of rationing and price control. Later in 1946, as the prices on the black market declined, upward adjustments took place in the wage-price structure with a resultant rise in legal prices. The gap between the legal prices and illegal prices therefore began to close (see St. A. Table 14). Finally the wage-price agreement of August 1947, which increased the legal price structure by about 50%, had a most salutary effect on the economy. For, not only did it reduce further the gap between controlled and illegal prices, but it also increased the money demands of the legal economy thereby contracting the availability of money for illegal business. The second currency conversion of December 1947 gave additional strength to the currency.

Since May 1945, many of the early symptoms of inflation were present such as hoarding, diversion of goods to the black market and a limited confidence in the schilling, nevertheless the nation's industries continued to produce, and at an expanding rate. By the end of 1947 it could be said that Austria's rehabilitation had not been retarded to any great extent by inflationary factors.

The Austrian Government's Anti-inflation Program

The fact that the various inflationary pressures existent in Austria have not culminated in a serious price-wage spiral may be attributed largely to the government's ability to maintain a legal price area where the minimum essentials of living were obtainable at prices within the income of the average wage earner. This maintenance of a legal area was achieved by means of price control laws, rationing, wage regulation and last, but not least, effective monetary measures. The rationing program is described in detail elsewhere in this work (see vol. II, pp. 67 ff). It need only be noted here that the system of controls of almost all commodities from the source of production, or origin, through final distribution and consumption had been continued through the post-war period. Without such controls goods would have flowed into the black market and the legal area would have evaporated. Prices could not have been effectively regulated if wages paid to labor had not also been controlled. Increased wages would palpably have pushed production costs upwards, necessitating price adjustments. This would have precipitated additional wage increases and set a spiraling process in motion. This is the road to inflation. Finally the government has maintained a price control program. An Austrian price office functions under the Ministry of the Interior and main tains various sub-offices operating throughout the country. With but few exceptions all commodities and services are regulated by price laws and increases allowed only where prices fail to cover costs, or where an overall price-wage increase is formulated by the government. The enforcing of price control laws is the duty of an established economic police force which is also under the Ministry of the Interior. Overall wage-price policy is made by a ministerial body called the Council of Economic Ministers, in which are represented all the major economic segments of the economy, i. e., labor, industry and farmers. There has been, and still is, a great deal of price violation in Austria, and in many respects the government has not pressed its price control

24

program as energetically as the situation would demand. The government enforcement apparatus is much too weak, and price policy is not always clear. But in spite of these administrative difficulties, which are perhaps inevitable weaknesses of any extensive system of control, the government has successfully managed to withstand the strong inflationary pressures inherent in the post-war situation. Perhaps it is the very flexibility of the government's policy which has insured the relative success of the price control program. Instead of pursuing a rigid "hold the line" policy, the Austrian Government appears to have selected a program of yielding where pressure becomes so strong as to endanger a serious cracking of its enforcement controls. Thus in 1946 and through the summer of 1947 continuous adjustments were made in the maximum prices of many commodities. Price increases were allowed on the basis of production costs. Periodic wage adjustments were also made consistent with advances in the cost of living which followed the granting of higher prices. In the late Spring of 1947, however, a crisis appeared to be developing. The relatively bad farm delivery record of 1946 and mounting production costs in agriculture made it quite apparent that if the government hoped to obtain through legal channels any share of the 1947 crop it would be necessary to offer some inducements to agriculture. Price increases for food products were accordingly granted. This clearly necessitated appropriate adjustments in wages, since between April and August 1947 the food com ponent of the cost of living index rose by more than 100%. Rather than continue a piecemeal adjustment program wherein wages were advanced followed by a rise in industrial prices, a sequence which could result in an inflationary development within the whole wage-price structure, the government, together with representatives of industry, agriculture and labor, reached an overall wage-price agreement whereby all areas of the economy were brought into appropriate balance in one major action. While this action attempted to establish and stabilize prices and wages into an acceptable relationship, prices, nevertheless, continued to move forward while wages remained constant. In actual fact the wage-price agreement of the summer of 1947 was accepted as an experimental alternative to a currency conversion. The "run-away" of industrial prices following the summer agreement finally precipitated the currency conversion in the final months of the year. The Austrian Government has continuously emphasized the importance of monetary controls as a means of achieving stabilization. The first post-war Austrian currency conversion took place in the closing months of 1945. The resulting reduction of monetary circulation while an important anti-

inflationary measure, was not as successful as had been anticipated. High occupation costs and other factors soon expanded monetary circulation to a level which was much higher than the aggregate value of goods available, thus permitting the development of a large monetary overhang. This was and still remains one of Austria's major inflationary dangers. Considerably more success was achieved on the monetary side in the second currency conversion which was undertaken by the government in December 1947. The government also maintained a reasonably balanced budget through 1946 and 1947. Although expenditures were not entirely covered by government income, the deficit was relatively small. The latter was mainly the result of such obligations as occupation costs and the maintenance of displaced persons. By the end of 1947, following the currency conversion, the stabilization situation, despite the persistence of numerous inflationary pressures, was reasonably good. Certainly by the end of that year the major danger of a price-wage break-through was a thing of the past. Expanding production, a new currency, and a patient trade union movement permit a reasonable optimism for the future.

Balancing the Austrian Budget

General The post-war government of Austria came into being only after the national elections in November 1945. The provisional Renner government which functioned from the liberation up to the closing months of 1945 recognized its own temporary nature and left the task of budget-building to its permanent successor. Consequently 1946 was the first post-war year in which a federal budget was actually prepared.

The

1946

Budget

The Budget estimates for 1946 assumed total ordinary revenues of S 2,530 million and total ordinary expenditures of 2,526 million, leaving a small surplus of 4 million. It turned oat that ordinary expenditures were somewhat lower, and revenues somewhat greater, than anticipated. The realized surplus in the ordinary budget was actually S 207 million. The budget-makers, however, had used a device familiar to budget-makers in many other countries. They had placed certain categories of unwelcomely heavy expenditures for

25

ORDINARY FEDERAL

BUDGETS RESULTS 1946 - 1947

OF SCHILLINGS

IN MILLIONS

EXPENDITURES I I REVENUES

ADMINISTRATION 5 LEGISLATURE

FEDERAL ENTERPRISES

FEDERAL RA!LROADS

TOTAL

the first two quarters of that year allocations to the occupying powers amoun ted to 35% of the total Austrian federal budget. For the third quarter the allocation was reduced to 30%, and for the fourth quarter to 25%, but only after long and acrimonious debates in the Allied Council. The Soviets, who had previously demanded and received half of the total occupation costs, agreed in the last quarter of 1946 to accept only a third of the total of future allotments. In 1945 the Austrian Government had paid out S 1,500 million in occupation costs, so that the 866 million paid in 1946 represented a considerable reduction. The greater part of this total, or S 812 million, was paid to the occupying powers for troop pay and maintenance (i. e. so-called "military" occupation costs). The other 54 million represented "advances" paid by the Austrian Government to its own nationals for goods and services furnished to the occupying powers. Of this, about S 40 million represented "advances" on behalf of the Soviet Element, which were not repaid by the end of 1947. The other S 14 million were later repaid by the French, British and US Elements. In addition to the direct payments and the advances mentioned above, the Austrian Government supplied new schilling notes in the amount of S 480 million to the occupying troops under the terms of the December 1945 conversion.

Figure 10

The Details of the Budget

The Austrian Government divides its budget under the following main head ings: administration and legislature (Hoheitsverwaltung), monopolies, federal enterprises, federal railways, and the Austrian tobacco corporation.
Administration and Legislature

reconstruction and investment purposes in a separate "extraordinary" budget. These, they estimated, would total 584 million in 1946. Actually they amounted to 1,254 million, resulting in a net budgetary deficit of S 670 million. In the extraordinary budget expenditures for occupation costs, which had been estimated at S 250 million, actually amounted to 866 million, and expenditures for maintaining displaced persons, which had been estimated at 56 million, reached a total of nearly 70 million. As a result, the total deficit in the Austrian Federal Government's finances for 1946 amounted to S 1,047 million, instead of the 580 million originally estimated. The ex tremely heavy expenditure for occupation costs was the chief cause (see Fig. 10 and St. A. Table 19).
Reducing Occupation Costs

Under the leadership of the US Element, strenuous efforts to reduce the occupation cost burden on the Austrian Government were made in 1946. In 26

Of the expenditures in the ordinary budget those for administration and le gislature constituted by far the largest portion. In the 1946 budget they had been estimated at S 1,705 million and actually reached 1 483 million. The net difference of S 222 million was the result of various factors. About S 150 million provided in the budget for service of the national debt were not spent in 1946. Outlays for pensions were about S 51 million less than had been estimated. Social insurance payments fell below estimates by about S 10 million and S 53 million earmarked for unemployment compen sation payments, were not needed. On the other hand, expenditures for the federal police and gendarmerie exceeded estimates by about S 24 million,

HOW DID THE FEDERAL BUSINESSES FARE 2 - 1 9 4 7

ALL FIGURES IN SCHILLINGS t^ REVENUES __ ORDINARY g EXTRAORDINARY EXPENDITURES SALT MINES RAILROADS

WIDTHS OF ARROWS ARE IN PROPORTION TO SUMS MINT

THEATRES

FEDERAL
MONOPOLIES

POST AND
TELEGRAPH SERVICE

N O T E : FORESTS

IN AODITION INVESTMENTS WERE MADE AS FOLLOWS: FEDERAL ENTERPRISES 32,923,700 MONOPOLIES 1,701,700 RAILROADS 23,933,600 58,559,000 TOTAL

FIGURE II

largely because safety conditions in Austria in 1946 necessitated an increase in federal police personnel. The ordinary revenues consist of the tax revenues and other government revenues to be discussed later which were budgeted at S 1,415 million, rendered S 1,559 million, whereas other government revenues (e. g. payments for social insurance 143 million against only 86 million budgeted school fees 31 million as against 46 million budgeted) brought in only 305 million against an anticipated 325 million. Thus total ordinary receipts exceeded ordinary expenditures by S 382 million. After deduction of the extraordinary expenditures estimated at 431 million but actually S 1,099 million, there was a net deficit of 717 million, or 82% (322 million) more than estimated.
Monopolies, Federal Enterprises and the Tobacco Monopoly

federal pharmacies with 630,000. The income of the mint was 1 million less than estimated. The monopolies made no extraordinary expenditures during 1946, but their investments totaled S 505,000, 1.5 million less than had been budgeted (see St. A. Table 21). Extraordinary expenditures of S 2 million were budgeted for the federal enterprises but none were actually entailed. Investments were 21 million or 7 million under the estimates. Investments of both monopolies and enterprises were principally in new buildings or equipment which are designed to bring a return in the future.
The Federal Railroads

In contrast to the reduced expenditures for government functions proper, the federal monopolies expended about S 9 million more in 1946 than had been provided in the ordinary budget and the federal enterprises exceeded budgetestimates by about S 68 million. The expenditures of the Austrian tobacco monopoly are not included in the budget, and only the estimated net profit from the operation of the monopoly is shown on the income side of the budget; the actual results of the operations, however, are not available. The monopolies of the Austrian Government include the salt monopoly, the state lottery, and the brandy monopoly. Pay ments to lottery winners were more than S 7 million above estimates, accounting for most of the unanticipated expenditures for the monopolies as a group. The federal enterprises include the postal and telegraph service, the federal forests, the government printing office, the mint, the federal theaters, and the federal pharmacies. The postal and telegraph service spent S 64 million more than estimated in the ordinary budget, the federal forests 0.5 million more, the federal printing office 2.5 million more, and the federal theaters 1.2 million more. On the other hand, expenditures for the federal mint were 0.5 million below estimates. However, the overexpenditure on the part of the enterprises was nearly balanced by a S 65 million excess of actual revenues of the enterprises (except the Austrian Federal Railways) over their estimated income. The post and telegraph service contributed the major share of the surplus, with total receipts of S 241 million, 59 million more than estimated. The other enter prises showing an excess of actual receipts over estimates were the federal forests with 4 million, the federal printing office with 2 million, and the

The railroads spent nearly S 91 million more in 1946 for ordinary operating purposes than the budget had provided, largely because of an in crease in pay rates and in prices for supplies and materials, especially coal. Another reason for the increase was the extremely poor condition of the road bed and the signal installations which required an increase in the number of crossing watchmen, trackwalkers, and the like. Extraordinary expenditures on the part of the railroads, mostly for re construction of war damaged installations, also exceeded estimates by S 21 million, bringing the total expenditures to 732 million, or 112 million more than the total budgeted for this purpose. Investments in new equipment and building totaled less than S 3 million as contrasted with the 12 million budgeted. Railroad revenues from all sources fell 3 million below expectations. Del ays in schedules because of the poor condition of equipment, plus the com paratively small amounts of goods moving were the principal causes (see St. A. Table 19).
Suggestions by the Allied Council

Austria's budget law, like other laws, came under review by the Allied Coun cil, and this provided an opportunity for detailed examination and recommen dations. Two types of expenditures, it seemed, were urgently in need of reduction. The first was expenditures for current personnel services. The Austrian Government had over 290,000 people on its payroll in 1946. Reduc tions in the number of federal employees were undertaken in 1947, and the 1948 budget estimates provided for only 245,500 positions. Even so, Austria still had a much larger civil service than in 1938 when it got along with 166,300.

27

Another place where expenditures seemed in need of trimming was in the federal pension list. Austria has always been liberal with pensions for her superannuated federal workers. One of the causes of Austria's financial diffic ulties after World War I was the heavy pension burden she carried be cause of the large number of former Empire officials who had to be cared for. After World War II, the pension list again threatened to grow. Recommen dations in connection with the 1947 budget were for higher pensionable ages, denial of pensions to able-bodied persons under the statutory retirement ages, and reductions in supplementary payments for dependents of pensioners. Taking cognisance of these recommendations, the Austrian Government raised the automatic pension age from 60 to 65, as of 1 January 1947, and adop ted a more rigid policy with respect to requests to enter the pension rolls be fore reaching the automatic pensionable age. Applications for supplementary pensions also came under stricter scrutiny. Nevertheless, the pension burden declined only slightly between 1946 and 1947. The budget estimates for 1946 allocated S 452.8 million for pensions to 194,500 persons. The 1947 budget estimates allocated S 440.7 million to about 194,350 persons. The estimates for 1948, which were prepared and approved in the latter part of 1947, provided S 740.3 million for about 176,600 persons. The increase in the total amount to be spent for pensions in 1948 was largely due to the effects of the August 1947 wage-price agreement. However, the Austrian Government's more restrictive policies with respect to pensions did result in reduction of the pension roll by about 18,000 persons. The federal budget shows an actual expenditure for pensions of about S 200 million in 1946 and 266 million in 1947. The difference between these figures and the much larger amounts mentioned above is due to the fact that the former totals apply only to pensions paid to former employees of the federal household itself while the large figures include also pensions paid to former employees of the federal monopolies, the federal enterprises, and the federal railroads. Federal Receipts in 1946 Of the total federal receipts of S 2,679 million, federal taxes accoun ted for 58 %, or 1,559 million. Receipts of the various departments aside from their shares of the taxes amounted to 306 million, of which the Ministry of Social Administration received 147 million, the Ministry of Education 30 mil lion, and the other ministries smaller amounts. This income came from a variety of sources: social insurance payments to the Ministry of Social Ad 28

ministration, tuition fees collected by the Education Ministry, etc. The net surplus of income to the Federal Ministries and other administrative offices over the total administrative costs amounted to S 382 million. Gross receipts from the monopolies were S 90 million, yielding a net surplus of 36 million. The federal enterprises had a gross income of 291 million, and total ordinary expenditures of 333 million, leaving a net deficit of 42 million. The federal railroads took in 433 million against expenditures of 601 million. All sources of income except the federal railroads grossed more than the budget estimates; the federal railroads' income fell S 3 million short of expectations. It was not known how the net profit of the Tobacco Corporat ion compared with the budget estimate of S 37 million, as the necessary accounting work had not yet been completed at the time of the audit of the 1946 budget. When investments and extraordinary expenditures are included the fed eral administration had a deficit of S 718 million, the federal railroads a deficit of 302 million, and the federal enterprises a deficit of 63 million, while the government monopolies yielded a net profit of 35.3 million (see St. A. Table 20). Tax Revenues Austria's post-war tax structure shows considerable change if compared with the pre-Anschluss period. Taxation in Austria has always been regarded primarily as a source of revenue rather than a means of social control. After the war the German tax laws were retained. They differed from the old Austri an laws principally in the high income tax, the original purpose of which was to procure money for war production and which was maintained to raise money for reconstruction after the war. While in 1937 only 30% of the total tax revenues were derived from income and other direct taxes, in 1946 and 1947, the taxes yielded nearly 50% of the total collected (see Fig. 11 and St. A. Tables 22 and 23). Some of the German taxation laws which were intended to equalize incomes have been relaxed since 1945, but with the purpose of avoiding an intolerable burden on some taxpaying groups rather then abating taxes in general. Other taxes were increased, with the 100% increase in the rehabilitation surtax on tobacco being the largest single rise. In addition, some taxes levied by the local communities were increased. The principal direct taxes in 1946 and 1947 were those on wages and other individual income, amounting to about 36% of the total taxes collected. The

corporate income tax yielded about 4 % and the trade tax another 6%. Another major source of tax income is the general sales tax, or turnover tax, which must be paid each time a commodity changes hands. In 1946 the yield from this tax was only 12% of the total (in 1947 13%) as compared with 25% in 1937, largely because there were fewer commodities available for sale in the post-war years, and many of the purchases have been made on the black-market, thus escaping taxation. The yield from customs was only S 10 million (0.6%) in both 1946 and 1947 as against S 208 million in 1937, partly because the majority of imports in 1946 were received as foreign aid which entered free of duty, and partly because the Austrian frontiers could not be adequately guarded by the small force of Austrian customs officials. Taxes on consumer goods amounted to 33% both in 1946 and 1947 compared with only 16% in 1937. These two figures, however, are not very well compar able, since in 1937 revenues from tobacco and cigarettes were not included among the taxes in the budget, but under federal monopolies. Receipts by this monopoly amounted to 174 million in 1937, and receipts from excise taxes to S 196 million (or 16% of the total tax revenues.) In 1946 and 1947 the excise tax on tobacco accounted to over 30% of all revenues, 503 million in 1946 and 1,070 million in 1947, reflecting the high rate of taxation as well as the high level of consumption of this commodity. In addition, a probably still larger amount of non-Austrian brands wras sold on the black market, without any taxes being paid on them. Other excise duties yielded only S 51 million or 3.1% in 1946. They consisted of taxes on beer, sugar, salt, mineral oil, matches, playing cards, wine, and the like, commodities which were available only in very small quantities in 1946. Stamp duties and miscellaneous taxes yielded only 76 million schillings in 1946, as against 131 million in 1947. They consisted of stamp taxes on legal documents and the like, and taxes on inheritances, real estate transfers, insurance, capital transfers, automobiles, transportation, and the special atonement tax paid by former members of the Nazi party.
Relative Share of Taxes Paid by Various Income Groups

PERCENTAGE

BREAKDOWN
TAXES
OTHER

OF FEDERAL

TAX REVENUES

DIRECT

INDIRECT TAXES AND CUSTOMS

MISC. SALES EXCISE* CUSTOMS

INCOME

1937
9.1 % 20 2 % 16.3% 17.3%

1946

" . " . * . " . TOBACCO.

1947
5.3% 13.0 7. 30.2 % 2.3%-' 0.5% NOTE: NO TOBACCO TAX IN 1937 PERCENTAGES 00 NOT INCLUDE TAXPAYER PAYMENTS OF TAX COLLECTION COSTS: 1937 - 0.3 % , 1946- O.I % , 1947 - O.I % PREPARED B US. ALLIED COMMISSION AUSTRIA Y

Figure 11

Data on the absolute amount of taxes paid by various income groups in Austria are not available. However, the Austrian Institute for Economic Research had computed the percentage of the annual earnings of various income groups which federal taxes absorbed in a typical post-war year. According to this computation the lowest income group, with an average in-

come of S 400 per month, paid federal taxes of all kinds totaling about 10% of its income. For those earning about S 800 a month, the federal tax burden amounted to about 12% of income. For the middle income group, those with incomes of S 1000 to S 2000 per month, the federal tax burden ranged from about 14% to 21 %. In the higher income groups, those with incomes of S 50,000 to S 1,000,000 per year, taxes absorbed from 40% to 61 % of net income. These figures are based on the assumption that all tax payers paid their taxes in full, but, as the study points out, the lower income groups, whose taxes are collected chiefly by witholding from wages, have less opportunity for tax evasion than the higher income groups, whose income is largely derived from business profits or professional fees. The study also indicates that independent farmers have escaped paying their just share of taxes because they keep no accounts and their income for tax purposes is computed on the basis of standard values for agricultural products which have not been changed since before the war, although prices received by farmers are about 4 times pre-war.

29

Shares of Laender and Communities in Federal Taxes

The financial relationship between the Austrian Federal Government and the Laender and the local communities have always been extremely complic ated. Before the Anschluss, the Laender and the local government units le vied their own taxes and had other independent sources of revenue. In ad dition, they received percentage shares of certain federal tax collections. Under the German system, the collection of revenues was concentrated lar gely in the central government, and the Laender and communities received allotments or subsidies from the Federal Government to carry on their functi ons. Upon re-establishment of the Austrian Republic, the German system was continued with few modifications, but it was anticipated that the old system of local tax autonomy would soon be restored. In the meantime, the only important sources of direct revenue retained by the Laender and commun ities were the trade tax and the property tax. In 1946 the Federal Govern ment turned over S 92 million to these local government units as their share of the federal tax revenue.

original estimates for the year 1947 had assumed a deficit of S 487 million, not including occupation costs and the costs of caring for displaced persons. The smallness of the actual deficit was a heartening sign that Austria would soon be able to put her financial house in order. It was partly due, however, to the effect of the December 1947, currency conversion. In anti cipation of the conversion there was a widespread paying-up of taxes and other obligations toward governmental units, and the Federal Government's receipts in December alone amounted to nearly S 1,200 million. The August 1947, wage-price agreement also had a favorable influence on the federal budget, since prices increased relatively more than wages, and a large part of the cost of operating the government is represented by the salaries of personnel (see Fig. I and St. A. Tables 1921).
Administration and Legislature

The

1947

Budget

Austria's 1947 budget estimates showed considerably higher figures, on both the expenditures and the revenues side, than the 1946 budget. This was largely due to the rising price level. However, the budget makers had not foreseen the August 1947 wage-price agreement, which occasioned a raise of 36% in federal salaries and caused upward changes in a number of other expenditure items. It was estimated later that the wage-price agreement alone would mean additional expenditures amounting to S 2,076 million, but that increased revenues, mainly from the tobacco tax, the turnover tax, and the federal railroads, would equal the increase in costs. Total receipts in 1947 were S 5,410 million, as against an originally estimated 2,989 million. Total ordinary expenditures were 4,209 million, as against an estimated 2,987 million, so that the ordinary budget showed an actual surplus of 1,201 million. However, extraordinary expenditures and in vestments of 669 million, plus extra-budgetary expenditures of S 97.1 million for the support of displaced persons and 506 million for occupation costs produced an actual deficit of S 72.7 million. The occupation costs were split between military costs in the form of cash payments of 407.5 million and civilian services, rendered to the Soviet forces only, of 99.1 million. However, this result was very much better than expected. The

Ordinary expenditures for operations of this administration and legislature during 1947 were budgeted at S 1,893 million, or 61% of the total ordinary budget. Actual expenditures were 2,517 million, 624 million higher, but accounting for only 51% of the actual ordinary espenditures. Major factors in the increase were S 190 million paid to local and provincial governments, in addition to the 221 million budgeted, as their shares of federal taxes, a S 69 million increase over the estimated S 197 million of pension payments, a 98 million overexpenditure by the Federal Chancellery, and lesser overexpenditures by most of the Federal Ministries. Extraordinary expenditures were budgeted at S 245 million and actually came to 1,016 million. The increase was in large part accounted for by the rise in building costs during 1947, as much of the extra ordinary expenditure was for repair and reconstruction of Federal Government buildings. The increased expenditures of the administration and legislature were more than countered by the increased revenues of all types received by these government branches. Tax revenues were nearly S 3,370 million instead of the 1,711 anticipated, while other revenues were more than double the 289 million budgeted. Thus, the total revenues were S 3,967 million, 1,967 over estimates. The total budget of the administration and legislature showed a net surplus of 434 million where a S 138 million deficit had been expected.

30

Monopolies and Federal Enterprises

Budget Estimates for 1948

One of the last acts of the Austrian parliament during 1947 was to pass the budget law for 1948, on 18 December 1947. In the ordinary budget for 1948 expenditures were estimated at S 5,091 million, while receipts were estimated at 5,092 million. Extraordinary expenditures and investments were estimated at 598 million, so that the expected deficit was 596 million. However, a number of changes in federal budget accounting made the figures for 1948 difficult to compare with those of previous years. For one thing, non-recurrent emergency expenses were transferred from the extraordinary to the ordinary part of the budget for 1948, leaving only investments and a limited number of reconstruction projects in the extraordinary part. Another change was in the manner of accounting for the revenues which are shared with the Laender and the communities. The budget-makers anticipated the passage of a new "Finanzausgleich" or "Financial Equalization" Law, which would radically change the method by which federal revenues from shared sources were distributed to the Laender and communities. Whether the 1948 budget estimates could come reasonably close to actual expenditures and revenues was a question that could not be answered without foreknowledge of the effects of the 1947 currency conversion on the Austrian economy, as well as the effects of the European Recovery Program. Austria, at the beginning of 1948, was on the threshold of major economic changes as a result of these two factors.

The budget of the monopolies, excepting the tobacco corporation, seemed fairly realistically drawn. Revenues and expenditures in the ordinary budget increased approximately in proportion to each other and to the degree of currency inflation during 1947. Revenues were S 143 million, 62 million more than the estimates, while ordinary expenditures were 83 million, 24 million more than estimated. Extraordinary expenditures of the mono polies, which had been budgeted at S 250,000, were only 202,000 (see Fig. II). The federal enterprises, except the Austrian Federal Railroads, had actual revenues of S 528 million and ordinary expenses of 545 million. Extra ordinary expenses were 2.5 million, and investments 33 million, leaving a de ficit of 52 million. The budget had assumed revenues of 334 million, ordin ary expenditures of 363 million, extraordinary expenditures of 2.5 million, and investments of 26 million, with a deficit of 57 million. The actual net profit of the tobacco corporation was not available at the end of 1947. It had been estimated at S 11 million.
The Austrian Federal Railroads

The Austrian Federal Railroads operated at a net loss of S 512 million instead of the 321 million deficit expected. Extraordinary expenditures and investments were 195 million and 23 million respectively, while ordinary expenditures were 1,063 million. Revenues were 770 million (see St. A. Table 19).

31

TRANSPORT

Background
General
Austria's geographical location at the crossroads of East-West and NorthSouth traffic in the center of Europe has accounted for the development of her excellent transport services. Austria early realized the important posit ion it was to play in international commerce, and the foreign credits available through the handling of transit shipments. Because of difficult terrain features, Austria's transportation systems have been faced with construction problems of almost unsurmountable difficulty. Through this, Austrian engineering ability has become worldfamous. Her engineering feats even today are recognized as marvels of man's ability to overcome nature. Engineers from the four corners of the world have come to Austria to study and to honor her technical achievements. Two of the many examples of Austrian engineering skill that are studied in technical schools throughout the world are: The railroad line crossing the Semmering Pass, which climbs 1,800 feet in approximately 27 miles, with a maximum grade of 2.5%, curves of 26 degrees, and a total of 10 tunnels and 22 multiple-arch bridges, built almost a century ago, and the highway cross ing the Grossglockner mountain, a two-lane toll highway of 43.5 miles length, which in 8 miles climbs 5,800 feet, with a maximum grade of 14%. The development and engineering maintenance of the Danube River as a vital, cheap means of transport, offering landlocked Central Europe a water route to the Black Sea and thence to the Mediterranean and the rest of the world, can also be credited to Austrian engineering ability. Austria's foresight regarding the possibilities and the future of international commerce, early assured her of the leadership in European transportation. Administrative, financial, and commercial principles that were accepted throughout Europe and have remained in practice to this day originated in Austria. The world's largest freight forwarding concerns, Schenker and Interkontinental, were founded in Vienna about 1850. Procedures which they developed are practiced today in all progressive countries ot the world. In considering Austria's present-day transport system, one must also keep in mind the problems of state-owned monopolies, the ethnological disunity of the Austro-Hungarian Empire, the disastrous effects of World War I and, particularly, the results of the splitting up of the Austro-Hungarian Monarchy at the end oi World War I.

Historical Data to 1918

The first horse-drawn rail line, from Budweis, now in Czechoslovakia, to Linz, (81 miles), was opened for service in 1832. After considerable modific ations, this line was converted to steam operation in 1872. Meanwhile, other lines were being constructed to connect Austria with the port of Trieste and all neighboring countries. Original construction and operations were by private enterprise. However, in 1842, the Imperial Chancellery decreed that railroads would be property of the state, at which time the general management of the State Railways was established. The purpose of this nationalization act was to create an added source of revenue for the treasury. This action had far-reaching effects on the progress in transport methods, because, in an effort to increase the revenue to the treasury, the minimum of service was offered for as high a rate as the traffic would bear. The Austro-Hungarian Monarchy's transportation system, until its dis solution in 1918, comprised: 27,800 miles of railway open for traffic in the Empire, of which 14,512 were in the Austrian provinces, and 13,333 in Hun gary; 17,297 marine vessels of all sizes, with a tonnage of 610,541, and em ploying 48,698 men; and ports in Trieste, Pola, and Fiume and 800 miles of navigable Danube river. Highways played only a very minor role in the transport field and were not constructed on advanced engineering principles.

New Problems 1918-1938

The Railroads

In 1918, with the dissolution of the Dual Monarchy, Austria (as we know her today) emerged with a railroad trackage of 4,134 miles of which 2,786 miles were federally owned and operated 894 miles were privately owned but federally operated (see Fig. 12 and St. A. Table 25), and 454 miles were privately owned and operated. The Austrian stretch of the Danube had been reduced to 215 miles of navigable river, and Austria had lost all her seaports. The highway system was antiquated.

32

VIENNA TERMINAL MAP

MAP OF THE AUSTRIAN RAILROAD SYSTEMS

MAIN ROUTES,DOUBLE TRACK MAIN ROUTES,SINGLE TRACK OTHER THAN MAIN ROUTESJE .= AUSTRIAN FED RR's LOCAL LINES
(STANDARD g NARROW GAUGE
( GAUG
I D E P E
INDEPENDENT RR SYSTEMS
(STANDARD , NARROW GAUGE)

Figure 12

33

These factors had a devastating effect upon Austria's general economy and presented a labor problem that has not yet been solved. When one considers that the personnel requirements in the Federal Ministries and other governmental bureaus situated in Vienna had been based upon the requirements of a huge empire, now reduced to 11.5% of its former area, and 11.8% of its previous population, one realizes the labor burden placed upon industry in general and transport in particular a burden that is still being carried. The new Austrian Government allowed all former federal railroad em ployees in Austria to remain in their former capacity and subject to retire ment according to Austrian law. Considering that the office of the general management of the Austrian Federal Railroads was now staffed with personnel sufficient to manage a railroad of approximately 4 times its present size, one realizes the duplication of jobs and the exorbitant payroll that was to be met by such greatly reduced railway mileage. As time went on, a staggering number of these employees qualified for retire ment; the Austrian Federal Railroads, complying with the Austrian lawr on pensions, are thus still carrying a pension burden that is unprecedented in any other industry. However, by 1937, Austria had acclimated herself to her reduced size and had become a self- sustaining and economically sound nation. At this point, commerce and international trade had increased throughout the continent and Austria, although small, found herself through her strategic location, high in importance in the transport of transit freight and passenger movements. Revenues derived from these sources helped the Austrian Government to meet its budget and obtain financial stability. The Austrian Federal Railroads realized the necessity of harnessing Austri a's abundant hydro-electric supply. This was particularly important in a country which had to rely on imports for the larger part of her coal supply. A program of electrification of railways was started, and by 1937 there were 557 miles of line converted to electric operation (see Fig. 12). Some indication of the formidable task accomplished by the railways in conquering Austria's ill-suited terrain is to be found in a resume of their ways and structures. The Federal railroads, on only 3,680 miles of line, had 6jO99 bridges (over 1,500 carrying multiple track) extending approx imately 70 miles with over 7,000 spans, and 240 tunnels (60 with double track) (56;miles in length. No other railroad in the world could boast of a comparable number of engineering structures per mile of line. 34

There were 317 locomotive water towers, 267 turntables, and 1,476 signal control towers and buildings covering 1,129,000 square yards, all in servi ceable condition. By 1937, the Austrian Federal Railroads were operating on a well-balanced budget and for the year showed a net operations profit of S 4,253.000. This profit was, however, more than offset by the extraordinary expenditure of S 24,696,000 (including S 14,635,000 for new electrification of line) for newconstructions and improvements which were considered over and above nor mal maintenance of ways and structures, shops, and equipment (see St. A. Table 27). Employment was at a normal level with a monthly average total of 56,903 employees (of which some 2,000 were employed in the offices of the general management), representing a yearly payroll of S 212,636,000 (a monthly average gross earning per employee of S 311). To this must be added a total of 80,911 retired employees drawing a yearly pension of S 139,664,000. Rolling stock consisted of 2,145 locomotives, 32,136 freight cars and 7,461 passenger units, of which it was estimated 1,829, 28,500, and 6,420 units, respectively, were serviceable. An appraisal of railroad operations in 1937 reveals that locomotives oper ated a total of 45,062,000 miles (of which 35,102,000 were revenue miles), pulling freight and passenger cars a total of 1,010,345,000 car-axle miles. 59,512,000 passengers and 27,311,000 tons of revenue freight were carried. The average freight car turnaround time was four days and 64% of the total freight car haul was under load; the average distance travelled by each passenger carried was 25.2 miles; each ton of freight handled averaged a move ment of 95.2 miles (at an average rate of 12.2 groschen per ton-mile). Highway Problems By 1937, although 117,362 highway motor vehicles were registered in Austria, the highways had not been modernized as the term is understood in modern highway engineering in the United States (see St. A. Table 34). Yet, between 1933 and 1937, 640 miles of federal highway had been improved or rebuilt at an expenditure of S 154,104,000. These improvements were credited to the work of the United Austrian Highway Association and its member associations in each of the Laender, which had conducted an effective campaign for better roads in Austria. Members of the association included municipal and communal governments, tourist trade enterprises, truck transport firms, interested individuals, and highway engineers and administrators.

REVENUES [ > I 1 M I S C .

YEAR 9 3 7 194 6 947

REVENUES 47 5,395 4 3 3, I I 9 770,785

EXPENDITURES 471,142 60 I ,26 I 1,063 , 0 8 0

PROFIT ( + ) OR LOSS ( - ) + 4,253 168,142 29 2 , 29 5

FIGURE

In the 1937 Federal budget, S 50,600,000 were designated for roads: Ordinary Budget Maintenance New Construction Modernization Roads other than Federal Austrian Schillings 11,500,000 37,100,000 0 2,000,000 50,600,000 This budgetary allowance was based upon estimates of income from taxes on traffic. The main direct revenue from highway traffic, which was derived from the gasoline tax and toll charges, had been virtually eliminated in 1931, on the initiative of the Federal Government. The second main source of revenue was from customs duties on the import of motor vehicles (100% of the sales price). These, plus a motor-transport tax and a vehicle-ownership tax, brought the annual revenue from highway traffic to over S 60,000,000. Unfortunately, the Federal Government did not see fit to expend all of these revenues from highway transport on the maintenance and new con struction of roads. Consequently, the highway system suffered from a chronic shortage of funds. Therefore, although heavier-type construction was cheaper in the long run than lighter types, small initial investment was considered of greater importance. This resulted in an inadequate highway system, the main tenance of which absorbed funds that should have been spent for permanent improvements. This type of construction called for light equipment only, and the Federal Highway Department and private construction firms reported 124 miles of field railway track, 700 dump cars, 6080 small locomotives, many steam shovels (figure unavailable), 30 hot-mix spreaders for tar and asphalt paving and 50 steam rollers. Private capital was reluctant to invest in modernized heavy-duty trucking equipment.This was partly due to high operating costs and low pay loads caused by inferior road construction, excessive grades, and low-limit bridges. An other ground for this reluctance was the Federal Government's disapproval of any phase of commercial transport that might deprive state-owned and operated rail and highway transport of revenue. In 1937, there were 117,362 highway vehicles in operation. Of these, only 2,392 were buses, most of which were operated by municipalities, Federal Post, or Federal Railroads. There were also 26,031 freight-carrying vehicles {including those employed in local drayage, and 12,214 3-wheel motorcycle

type carriers with maximum capacity of 500 pounds). In addition, 2,223 freight trailers were licensed (see St. A. Table 38). The major portion of the heavier units operating over the road were corporation-owned vehicles used for short-haul delivery of the owners' products. Inasmuch as contract carriers were not in common operation in Europe, the remaining over-the-road vehicles were common carriers, a group that was sub divided into two classes: (a) those permitted to operate within a radius of 31 miles, and (b) those with permits exceeding 31 miles. A large portion of this latter group were operating in international commerce with neighboring countries, although these also travelled relatively short distances. The Waterways Austria, not being an agrarian nation, is consequently forced to import large quantities of foodstuffs. It has always been essential to transport these food stuffs at minimum cost. Luckily, these imports were mostly obtainable from riparian countries of the Danube river, in exchange for Austrian manuf actured products. The Danube river has played, therefore, an important part as a mode of transport in the Austrian economy. By 1914, the Danube Steam Ship Company (Donaudampfschiffahrts gesellschaft-DDSG) had become the largest inland navigation company in the world. Despite the loss of half of its vessels after World War I, it was able to retain its leading position in Europe. Between 1918 and 1938 navigation on the Danube River was regulated by international agreement and was free to all nations. On the Austrian stretch of the Danube, big shipping companies of other nations (Germany, Czechoslovakia, Hungary, Yugoslavia, and England), in addition to two large Austrian firms and other smaller companies, maintained regular ship ping services. In 1937, only two navigation lines of any importance were operating on the Danube as Austrian firms, DDSG and COMOS (Kontinentale Motor schiffahrts A.G.). The latter was actually a Dutch line, flying the Dutch flag, but with all shares of stock deposited in Austria and paying Austrian as well as Dutch taxes. In 1937, these two companies were operating a fleet of 572 river craft, consisting of 49 tugs, 27 freighters, 18 passenger boats, 6 tankers, 412 barges, and 60 tank barges, with a total capacity of 344,513 tons and 14,600 passen gers. During that year, this fleet operated 754,208 miles and moved 1,535,621 tons of freight and 645,438 passengers.

Although no complete figures are available for 1937 covering total Danu bian freight traffic, a study of the 1936 figures will give some conception of the importance of the Danube river as a commercial highway for Austria. In that year, a total of 1,797,538 tons was handled, of which 165,094 tons were inland freight, and 1,088,298 were either import or export traffic and 544,146 tons transit freight (see St. A. Tables 39, 40, 41 & 42). One of the more important and frequently overlooked means of passenger transport by inland navigation is the small lake-steamer. Austria has a large number of lakes and borders on one of the largest lakes in Europe^, Lake Constance, The steamers, while offering frequent excursion trips, operate on regular schedules mainly for the tranport of workers, school children, and transients and carry some freight to small villages that are inaccessible by either highway or rail. Between 1932 and 1936 approximately 700,000 passen gers were transported annually by this lake traffic. Most of the vessels are small (150200 passenger capacity) and are steam-operated.

Double track was laid on the following lines: Passau Haiding (Upper Austria) Woergl Kufstein (Tyrol) Leoben St. Michael (Styria) Bruck Zurndorf (Lower Austria) 45 miles 9.7 10 ,, 12

Incorporation into German Transport System 19381945

The Railroads After the Anschluss, the Austrian Federal Railroads and the Austrian Federal Post (with its bus system) were integrated with the Deutsche Reichsbahn and the Deutsche Post, respectively, and lost all semblance of their former entity as indiviudal units. The Deutsche Reichsbahn in Berlin absorbed the management of the Austrian Federal Railroads. Problems peculiar to Austrian rail operations were completely overshadowed by the needs of the newly expanded German railroad system. All rolling stock formerly belonging to the Austrian Federal Railroads was re-marked "Deutsche Reichsbahn" and placed in operation at the discretion of the Berlin general management, in other operating districts. There were essential changes made to conform to German prin ciples with respect to both administration and operations. Particularly sig nificant changes were effected in the assimilation of signaling equipment. The integration of Austria's railways with the German transportation net was complete by 1941. ** Germany, realizing the importance that the former Austrian Federal Railroads would play in its world aggression policy, made efforts immediately after the Anschluss to improve rail facilities in Austria, particularly in those strategic areas that the Nazis intended to industrialize for war production. 36

The standard-gage cog line Vordernberg-Eisenerz, Styria, used for hauling iron ore from the Erzberg mines, was relaid with heavy track and equipped with more modern signaling equipment in order to increase the operational capacity. The electrification of the section of the Salzburg-Vienna line from Salz burg to Attnang-Puchheim was completed. In keeping with Germany's idea of developing Linz as Austria's greatest in dustrial center, rail yard facilities of the city and environs were greatly ex panded. The switching yards in Linz were modernized and more than tripled in capacity. The Wels marshalling yards were expanded and greatly improved by the addition of two modern retarders and one modern breaking-hump which had a control tower equipped with an interlocking switching system. The Amstetten yards (marshalling yards east of Linz) were greatly expanded and modernized. Because of the importance of the Brenner Pass line, in view of the close relationship of Germany and Italy, Germany also greatly enlarged and mod ernized the yards at Innsbruck, for rapid handling of freight cargoes. Realizing the necessity for rapid freight haulage and the added weight demands in moving war equipment, Germany increased the axle loading capacity on all main lines. Nonetheless, the war demands on both labor and materials prevented normal maintenance of ways and structures, rolling stock, and shops. Ways and structures suffered from a lack of repairs, roadbeds deteriorated through the continued deferment of proper distribution of ballast and replacement of cross-ties, shops were unable to obtain replacements of machine tools, supplies of materials, and were drained of the more skilled engineevs and laborers, with a resultant inadequate maintenance of rolling stock and swit ching and signal equipment. Although no figures are available (after the Anschluss all operating fig ures were maintained at the general management's offices in Berlin), it is reasonable to assume that from 19381944 the operating districts in Austria handled an all-time record of freight tonnage. Heavier loads,, faster and more

frequent schedules, and lack of proper maintenance stepped up the tempo of over-all deterioration of the ways and structures. The war itself had a most devastating effect on Austrian railroad facilities. Rail yards, shops, and bridges suffered heavily from bombing, shelling, and demolition. As a result, at the end of hostilities in 1945, 1,558 miles of line (41 %), 381 bridges (6%), 97 water columns (30%), 44 turntables (31 %), 262 control towers {14%) and 6,775,000 cubic yards of railroad buildings and shops (27%) had begn damaged or destroyed (see St. A. Table 24). The switching yards and facilities at Wels, Linz, Salzburg, Graz, Vienna, Bruck, St. Poelten, Krems and Woergl had been 90% destroyed; the classification yards at Innsbruck, Vienna, Linz, Amstetten, and Attnang-Puchhein had received a similar percentage of damage and the main railroad shops at Floridsdorf (Vienna), Linz, and Simmering (Vienna) had been 80% destroyed. It was further estimated that 60% of the freight and passenger cars and 80 % of all locomotives were rendered unserviceable. At the cessation of hostilities there was no rail movement, not only be cause of devastation but also because of lack of fuel, electricity, and operating personnel, and the chaotic situation which in itself precluded the offering of goods for transport. The Highways The Nazi Government, realizing the importance of modern arterial highway systems in mechanized warfare, planned and began work on the extension of the network of Autobahns from Germany through Austria. This was the first major effort to modernize Austria's antiquated highway system. The plan called for the construction of 876 miles of two parallel, double-lane, concrete highways, separated by parkways, by-passing all cities and towns, without rail or highway crossings and constructed with clover-leaf approaches. In the long straight stretches, plans called for the concreting of the center parkway in order to allow the highway to function as a landing strip for air craft. Although only 11 miles of the super-highway in the vicinity of Salz burg were completed, work was in progress on an additional 208 miles. On the section Salzburg-Linz-Vienna, the right-of-way was cleared, the arches for practically all of the bridges were completed, and most of the concrete cul verts were delivered to locations. As part of this project, great emphasis was placed on longhaul highway transport. The greater use of highway equipment, particularly of the heavier

type, was encouraged. This trend accounted for the increase (approximately 350% between the years 1937 and 1945) in tractor and trailer vehicle regis trations. The years 1938-1945 saw a radical change in highway traffic. Prior to 1938 there were 2% times as many passenger vehicles operating as trucks. With the wartime curtailment of non-essential operator's permits and the im position of gasoline rationing, the proportion of truck to passenger traffic rose to 3 : 1; operation of motorcycle traffic was reduced by approximately 50%. "*^ Although tonnage figures for highway transport are not available, evidence indicates that highway freight tonnage during the war years increased by a far greater percentage than did rail tonnage. One of the factors contrib uting to this increase was Germany's dispersion of war production plants to remote localities which were often inadequately served by rail transport. This same factor accounted for an increase in highway bus operations, both in passengers carried and units operated, since, in many instances, this was the only means available for transporting workers to and from the factories. Between the years 1937 and 1944 bus units increased by 6%. Full employment, accelerated industrial production, and a curtailment in the operation of non-essential highway vehicles accounted for an increase in municipal transport. Because of a German law that soldiers in uniform were permitted free municipal transport, the revenue of the various Austrian municipal transport systems was not in proportion to the increase in the number of passengers carried. A lack of manpower prevented the normal maintenance of highways during the war years and accounted for a general deterioration of the entire high way system. Further deterioration was brought about by the tremendous increase in truck traffic, carrying loads in excess of those for which the high ways had been constructed. Strategic highway bridges which bombings and artillery fire had failed to destroy were blown up at the end of the war by the retreating German forces. At the end of hostilities, there was no civil highway transport in operation whatsoever. There had been a mass exodus westward of both the German army and the civilian population from eastern Austria. Every mobile ve hicle had.-been pressed into service and driven, as far westward as gasoline and conditions permitted. Abandoned and wrecked vehicles littering the highways were pushed into the roadside ditches to permit passage of the steady flow of traffic. By May 1945, 65% of Austria's motor vehicles had been dissipated from normal home stations to points in western and southern Austria. Because 37

repair parts had been available only for military purposes, most of this mass was neither operational nor, without cannibalization, reparable. The Waterways Inland waterways had fared slightly better than other means of surface transport. Although many tugs and barges had been destroyed, the move ment of foreign craft up-stream from Eastern countries was sufficient to replace the majority of those sunk and damaged. But here also was a marked deterioration of equipment due to a lack of proper maintenance and repairs. By the end of hostilities, most crews had deserted and the vessels were tied in docks without proper personnel to safeguard craft or cargoes aboard. Dock and harbor facilities, particularly in Vienna, had been severely damaged; load ing and unloading equipment and warehouses receiving the brunt of the destruction. River bridges were destroyed and offered obstructions that made traffic on the river impossible.
Municipal Transport

and priorities given to the movement of shipments essential to the supply of troops and the civilian population.

Railroads
Repairs Of the pre-war total of 3,680 miles of federal line trackage, about 41 % (1,558 miles) was damaged. In addition, 36 %% of terminal and switch yard trackage 43%% of switches, and 25% (139 miles) of catenary had either been damaged or destroyed. A total of 6,775,000 cubic yards of station buildings, train sheds, terminals, locomotive and car shops, control towers, and main buildings also had suffered damage. The rapid rehabilitation of the Austrian railroad system was imperative; and reconstruction work was begun immediately after the cessation of hostilities. The task was tremendous and was not lightened by the loss of many key employees who had to be dismissed in accordance with denazification regulations. By the end of 1947 much progress had been made: all railroad trackage(standard and narrow gauge), with the exception of 30 miles, had been repaired; of the 381 bridges which had been destroyed, all except 22 had been replaced by temporary or permanent structures; of the 44 turntables which had been war-damaged, 20 had been placed into service again; of the 262 control towers, all but 69 were in operation; 55% of damaged railroad buildings had been repaired; 3,319 major, 10,052 medium, and 26,919 minor repairs had been performed on locomotives; 15,025 major, 25,667 medium, and 439,660 minor repairs had been made on passenger and freight rolling stock (see St. A. Table 24).
Rolling Stock

Municipal transport probably received a larger percentage of damage than any other phase of transport. There was no operation possible in Vienna, Linz, Salzburg, or Innsbruck. Rail, catenary (overhead electrical wiring), and rolling stock had been destroyed. In Vienna, the municipal transport system suffered its heaviest damages during the actual battle for Vienna. Street cars were used as barricades, catenary and poles were pulled down by heavy tanks, and undestroyed track was usually covered by debris from destroyed buildings. The actual track damage had been small only 7 miles (2%).

Post-War 19451947
General
After the cessation of hostilities, the Allied occupational forces began the rehabilitation of such transport as was essential to the armed forces and to the requirements of the Austrian population. Rail transportation officers, engineers, military government and harbor craft units assumed the respon sibility of restoring all phases of required surface transport. Highway and rail bridges had to be rebuilt, rail lines restored, and bomb damage to high ways repaired; fuels required for various types of transport had to be supplied

At the cessation of hostilities, Austrian rail yards and lines were crowded with rolling stock and locomotives of German, Austrian, and foreign origin, most of which had been re-marked with the symbols of the German State Rail roads. No inventory of this equipment was ever taken, but it is known that the units were far in excess of Austria's pre-Anschluss equipment. In these excess supplies, there seemed to lie the promise of the early restoration of the Austrian Federal Railroads to a pre-war normalcy insofar as operational rolling stock was concerned. However, various unforeseen developments led to a very rapid deterior ation of this favorable situation. That equipment which was in the best condition was immediately placed into service by the Allied armies for the movement of their troops and supplies, and the return of displaced

38

persons to their own countries. Unfortunately, most of this equipment was never returned-to Austria nor was other equipment returned in exchange therefor. This alarming exodus of rolling stock from Austria reached such propor tions that in the fall of 1945, the Allied Commission for Austria established the policy of a car-for-car exchange in all international traffic. Although this policy was unanimously agreed to by the four occupational powers, the Soviet Element, nevertheless, did not enforce the ruling on traffic between Austria and Soviet satellite countries, with the result that by the end of 1947, Austria had a credit balance of 3,900 cars owed by eastern countries. The rolling stock was further depleted through the restitution to owner countries of units on Austrian lines which were the property of Allied nations. In addition, an element of uncertainty was introduced by the Soviet pol icy of declaring all rolling stock found in its zone prior to 1 June 1945, as war booty and subject to disposition as the Soviet Element saw fit. By the end of 1947, under this ruling, the Soviet Element had removed approximately 500 locomotives and 8,000 cars from Austria. Thus, the situation obviously necessitated the formation of at least a tem porary Austrian car park of sufficient capacity to care for the minimum needs of the Austrian economy. At the instigation of the three Western Powers, the Allied Commission, on 21 March 1947, agreed to permit the Austrian Federal Railroads to form a temporary car park of 5,000 passenger and 25,000 freight cars. Permission was granted to cross out the former car markings of the Deutsche Reichsbahn and to add the markings of the Austrian railroads, which other European nations agreed to recognize. However, even though this relieved the situation, it was by no means a final solution, as the ruling did not establish the final ownership of the cars involved (see St. A. Table 31). It was realized that a similar agreement on locomotives was necessary, and the three Western Powers made repeated efforts to obtain agreement in the Allied Commission. No agreement from the Soviet Element had been obtained by the end of 1947.
Employment

THE FEDERAL RAILROADS

COMPARISON OF MONTHLY AVERAGE NUMBER OF EMPLOYEES

BY OPERATING DISTRICTS a GENERAL MANAGEMENT

1937 * ES3 1946 ; 1947 IN THOUSANDS OF PERSONS

VIENNA GEN. MANAGEMENT

PREPARED BY U.S. ALLIED COMMISSION AUSTRIA

Figure 13

experienced a minimum of war damage, was not forced to increase its number of employees to any appreciable extent. At the same time, it is most note worthy that whereas there was a tremendous increase in the number of rail road labor employees, there was an appreciable decrease (30%) in the general management and its subsidiary offices. This over-all increase in employees accounted for an approximate 60% increase in number of employees per 100 miles of line (see Fig. 13 and St. A. Table 26). Financial In 1937, the Austrian Federal Railroads had shown an operating profit of S 4,253,000. But in 1946 its financial statement revealed an operating loss of S 168,142,000, and in 1947 a loss of S 292,295,000. In addition, extra ordinary expenditures increased by 550% in 1946 and by approximately 900% in 1947. Reconstruction of war-damaged equipment accounted for the increase in extraordinary expenditures. The operating loss was occasioned

The great volume of work required in the rehabilitation of the railroad system, plus the lack of skilled labor, caused a 100% increase in employees. This increase was proportionally divided between the Vienna, Linz, and Vil lach operating divisions. The Innsbruck operating divison, however, which

39

PASSENGERS CARRIED BY FEDERAL RAILROADS

MONTHLY AVERAGES

4,959,000

outlying rural areas in an effort to obtain food for their own use and for sale on the black market, (see Fig. 14 and St. A. Table 28). In 1947, when conditions began to become more stable, the number of passengers carried fell appreciably to a total of 92 million. This travel was practically 100% internal. International passenger traffic remained very restricted, and Austria collected very little foreign currency from this source. Prior to the war, international traffic on the Austrian rail roads had been a profitable source of foreign currency.
Freight Traffic

19 4 6

10,833,000

194 7

7,674,000

= 1,000,000 PASSENGERS
PREPARED BY US ALLIED COMMISSION AUSTRIA

Freight traffic carried in 1946 totaled 15 million tons. In 1937, 27 million had been carried. Although a small portion of this decrease may be accounted for by the lack of serviceable freight cars, the main contributing factor was a lack of goods to be shipped. This situation improved considerably in 1947 when 24 million tons were handled. The increase is attributable to improvement in the number of ser viceable cars, the gradual improvement of the Austrian economy, which was in a position to offer increased tonnages for shipment, and an increase in American relief supplies (see Fig. 15 and St. A. Tables 29 & 30). Operations Operating conditions deteriorated in proportion to both the inadequate number of properly skilled employees, and the deteriorated condition of the rolling stock, locomotives, and war-damaged handling and storage equipment. In 1946, the average turn-around time had increased from a 4-day average in 1937 to 16 days; locomotive coal consumption had increased from 23 tons per 1,000 locomotive miles in 1937 to 35 tons per 1,000 in 1946 (one reason was the inferior quality of coal available), and although locomotive revenue miles operated decreased from 35 million in 1937 to 19 million in 1946, non-revenue miles increased from 10 million in 1937 to 11 million in 1946. Improvement in operations was noted during the year 1947; average car turn-around time had been reduced to 11 days through the application of increased demurrage charges and more efficient handling by all concerned. The average consumption, however, of bituminous coal per 1,000 locomotive miles increased to 41 tons, a fact which is attributable to the increased number of cars and tons per train and the inability to properly maintain and repair the locomotives. Although the total number of locomotive revenue

Figure 14

by the increase in employment and a 70% increase in wages. This wage in crease also involved a 70% raise (S 139,664,000 in 1937, to S 241,708,000 in 1947) in pension payments (see Fig. Ill and St. A. Table 27). Passenger Traffic Although there was an inadequate number of passenger coaches available (most of which were 2nd and 3rd class coaches withouth windows, heat, or lighting), the number of passengers carried in 1946 was 130 million, as com pared to 59 1 / 2 million in 1937. This increase was caused by the generally unsettled conditions of post-war Austria. Many people were seeking new homes; displaced persons were attempting to return to former residences; persons were seeking lost relatives and misplaced property and attempting to secure employment. Probably the greatest source of congestion for the railroads was the travel by individuals from the larger cities to 40

miles remained the same as in 1946, the total number of non-revenue miles dropped to the prewar level of 1937 (see St. A. Tables 32 & 33).

RAILROAD FREIGHT TONNAGE

MONTHLY AVERAGES 1937 - 1946 - 1947
{ 2,276,000T - I.25O.OOOT - 2.007,000T )

Highways
Highway Maintenance - The 3,790 miles of Federal highways and 312 bridges of 20 or more meters in length, suffered heavy devastation not only from bombings and artillery fire but from excessive traffic (particularly of tonnages in excess of that for which they were constructed) and a material deterioration because of a lack of proper maintenance. Of the total number of bridges, 31 (10%) were war-damaged. By the end of 1947, however, 10 of these had been replaced by permanent structures and the remaining 21 had been replaced by temporary structures. A lack of bituminous materials retarded the reconstruction of the war-dam aged highways, but supplies furnished by the Occupational Forces per mitted the repair of those arterial highways essential to the Allies. Mean while, all damages to secondary roads were patched and repaired by the con tinued replacement of gravel and stone. By the end of 1947 all roads were at least serviceable.
Highway Transport General

250,000 TONS

PREPARED BY U.S. ALLIED COMMISSION AUSTRIA

Figure 15

In May 1945, civilian highway transport was at a standstill. A lack of fuel, tires, and repair parts prevented any operations in this phase of transport. The first major task in rehabilitating highway transport was to register with essen tial service stickers all vehicles deemed necessary to the Austrian economy; to obtain and distribute POL (petroleum, oil, and lubricants) products to the operators, and to devise regulations covering the rationing of these products. The procurement and distribution of tires, tubes, and spare parts and the rehabilitation of war-damaged vehicles was also necessary. The US Zone was the first to inaugurate a serviceable system to handle these problems, which was universally adopted by the Austrian Government in 1946. Because of the non-serviceable condition of the railroad and the impossib ility of using the Danube river in the summer of 1945, all freight movements were necessarily handled by trucks. Although the tonnage at this time was small, certain essentials, particularly food, had to be brought from the farms to the urban areas and stocks of medicinal supplies and clothing held in

warehouses had to be distributed. Every piece of available functioning equip ment was placed into service on a 24-hour basis. After railroad facilities had been repaired, highway trucking also began to return to normal operations and to carry goods to and from rail terminals. In the face of the road conditions and the lack of tires and repair parts, the highway transport system in Austria accomplished a herculean task and must be credited with having contributed immeasurably to the prevention of disesase and unrest in Austria during the difficult months in 1945. One thousand damaged trucks, rebuilt at the Steyr works (in the US Zone), were placed at the disposal of the Austrian economy, both within the US Zone and Vienna. Trucks allocated to the City of Vienna played a major role in the rubble removal program, and in the summer of 1946 transported fresh fruit and vegetables from Lower Austria and Burgenland to the capital. The supply of POL products for highway transport was of major im portance. Since domestic production was under Soviet control, these supplies had to be obtained from external sources. In 1945, the US Army supplied

41

HIGHWAY TRANSPORT VEHICLES

ACCORDING TO TYPES OF FUEL CONSUMPTION-1947

0.3 % ELECTRIC

Numerically, the Austrian economy had emerged from the war with a 29 % increase in its highway vehicles (see Fig. IV). However, it must be kept in mind that 70% of these vehicles were over 5 years of age and during the war years had experienced a maximum of use with a minimum of maintenance. Vehicle registrations indicated the following types of fuel consumption : 84.3% gasoline, 115.% diesel, 3.9% gas or wood burners, and 0.3% electric (see Fig. 16 and St. A. Table 35).
Freight and Passenger Traffic

84.3 %GASOLINE

3.9 % BOTTLE GAS WOOD BURNERS MISC. 11.5% DIESEL

The tremendous increase in tonnage handled by highway carriers is well illustrated by the fact that the amounts rose from 7 million tons in 1936 to 19 million tons in 1947. Although no figures are available of the total number of passengers carried by all Austrian bus systems, the Austrian Federal Rail road Bus System carried 1.4 million in 1945, 8.1 million in 1946, and 11.6 million in 1947. The Austrian Postal Bus System (which tabulates only reve nues and not passengers) shows gross revenues of S 4.4 million in 1945, S 23.5 million in 1946, and S 38.6 million in 1947 (see St. A. Tables 36 & 37).

PREPARED BY US. ALLIED COMMISSION AUSTRIA

Inland Waterways
General

Figure 16

and distributed an average of approximately 500,000 gallons of gasoline and 400,000 gallons of Diesel oil to the US Zone monthly. Early in 1946, the Soviet Element agreed to allocate POL requirements from domestic production in Lower Austria. However the quantities allocated were never sufficient and in no instance was the monthly allocation met. Consequently, it continued to be necessary for the US army further to augment domestic deliveries to the US Zone from military stocks in order to prevent a breakdown of highway transportation. In 1946, 850 tons of captured enemy buna rubber were released to the Austrian economy by the US Army. Most of this rubber was placed at the disposal of the Semperit Werke, in Lower Austria, for new tire production. This brought some relief to the critical tire shortage. The war destruction and Soviet seizure of certain size tire molds, however, prevented the new pro duction of certain size bus and truck tires. It was only the timely arrival of 32,000 tires from UNRRA in these desired sizes that prevented a cessation of truck and bus services.

At the beginning of the occupation, a preliminary survey of the Danube river's shipping facilities revealed deplorable conditions. Although the shipyard at Linz (the main Danube harbor in the US Zone) had suffered minor damage, the shipyard personnel had dispersed and operations were at a standstill. The shipyards at Korneuburg and all craft in the Soviet Zone had been seized by the Soviet forces. In the US Zone, former German and Austrian shipping control organizations, such as the River Police, had been dissolved and the equipment was dispersed and in numerous cases either destroyed or lost. Approximately 800 river craft of all types and nationalities had surrendered to the US army and were scattered over the entire length of the US Danube sector. The majority of this craft were precariously moored and in a poor state of maintenance. Many required heavy repair before being placed back into service. In anticipation of the winter season, dispositions were made to shelter the entire fleet within winter harbors and shelters. This necessitated extensive dredging of every available basin and shelter, since the number of craft involved was far in excess of any previously sheltered in this relatively limited area.

42

HIGHWAY VEHICLE REGISTRATION

LEGEND
1936 B 1946 1947

EACH SYMBOL EQUALS 10,000 UNITS

FIGURE IV

The financial situation of the various shipping companies was also found to be extremely precarious. Cut off from their head offices, many of which were in Germany, and with no sources of revenue, crew members had not been paid for months. In some instances, these conditions resulted in open mutiny. Immediate steps were taken to alleviate the situation through the un blocking of frozen funds. The problem of rations and other vital needs of civilian crew members, many of whom were non-Austrian, was solved through the cooperation of US military government and civilian agencies. Rehabilitation Because of the attitude of the Soviet Element and its claim against Austrian shipping, it was impossible to re-establish shipping throughout the entire Austrian length of the Danube. By 1947, however, the following had been accomplished: (a) Navigation had been opened on the entire length of the US Danube sector. Damaged river constructions had been largely removed and navi gational channels had been freed of obstructions and dredged. (b) One passenger boat had been placed in service offering regular passenger service for civilians from Linz to Engelhartszell and return. (c) A comprehensive boat maintenance and repair program had rehabilit ated a large part of the Danube fleet. (d) Damaged shipyards had been cleared of debris, and, where possible, reconstructed to operational status (see St. A. Table 43). The foregoing accomplishments indicate that, for all practical purposes, navigation on the Danube river had been restored. But political considerations which restricted this transportation to the US Zone only (a limited geo graphical area of the Danube river) did not permit extensive navigation or trade. Only a few thousand tons of miscellaneous freight were moved in 1947. By the end of that year, most shipping was on a deactivated status with most boats having a minimum of maintenance personnel. No figures were available for shipping operations in the Soviet Zone. Yet actual observation indicated that this once busy stretch of the river was generally deserted except for an occasional tug, with barge, or a river steamer. It is easy, therefore, to imagine the continuous damage done to Austria by the almost complete elimination of its cheapest mode of trans port. In the meantime, highway and rail transport, both struggling with their own difficulties, had to carry the additional burden. There is not even

much hope that Danube shipping may be restored in the near future, as long as the Soviet Element maintains its intransigent and adamant control of the Danube and its shipping facilities as far west as possible.

Municipal Transport
General All municipal transport systems throughout Austria were severely dam aged during the war. In May 1945, not a single line was in operation. Although there are municipal services in all the major cities of Austria (Vienna, Graz, Linz, Salzburg, Innsbruck, St. Poelten, and Klagenfurt), Vienna, having the only major system, will be the only one considered in this report. The Vienna municipal transport system is considered one of the most efficient in the world for a city of its size. This efficiency was accomplish ed through the planning and routing of its lines, which has prevented peak loading terminals. Even in the business sections, at opening and closing office hours, one does not find the heavy concentration of passengers at stops which would be expected in a city of 1,750,000 people (see Fig. 17). War Damages The Vienna Municipal Street Railway and Rapid Transit System suffered heavy war damage, especially during the actual battle of Vienna in April 1945. The cars were used as barricades; overhead trolley lines and poles were pulled down by heavy tanks; bridges were blown up; and stations, shops, and other buildings which had remained undamaged by air bombardment suf fered severely from artillery fire. Practically all of the motor bus equipment was either damaged or requisitioned by the retreating German Army. Al though the track area had been hit by over 500 bombs, only about 7 miles, (less than 2%), was damaged. Reconstruction On 29 April 1945, three weeks after the entry of the Soviet Army, only 6 car lines (10%) had been placed in operation. With the arrival of the other three occupational powers in Vienna, work on rehabilitation of the Vienna municipal transport system was accelerated. By 1947 all lines scheduled for restoration were in operation. The work accomplished, particularly in the first year after cessation of hostilities to May 1946, reveals the tremendous task which confronted the Vienna municipal system (see St. A. Table 44).

43

VIENNA MUNICIPAL TRANSPORT SYSTEM

LEGEND
STREETCAR LINES

UNDERGROUND-ELEVATED LINES BUS-LINES FIRST DISTRICT BUS-LINES

BUILT- UP AREA PARKS

PREPARED

BY

U S . A L U E D COMMISSION AUSTRIA

Figure 17

44

Traffic

Passenger traffic demands on the surface and rapid transit system of Vienna has been very heavy indeed. Undoubtedly, the per capita riding rate is one of the highest of any large city in the world, a per capita travel of 440 trips per year (which figure does not allow for the fares uncollected because of the crowded condition of the cars). Although up to December 1947 only 62% of the pre-war number of cars were in operation, passenger figures were approx imately 26% higher than in similar periods in 1938. Compared with pre-war operations, the car equipment in 1947 was being operated approximately 11 % further each month. The number of passengers per car-kilometer which, before the war had been 3.9 had risen in 1947 by 85% to 7.2 revenue passengers per car-kilometer operated (see St. A. Table 45).
Personnel

The total employment in 1938 was 13,150, while the post-war employees were 8,000. By 1947, the number returned to the pre-war total. This fact is significant when one considers the immense increase (approximately 25%) in revenue passengers carried.

Conclusion
By the end of 1947, all phases of surface transport had been rehabilitated to the extent that the carrying capacity was sufficient to meet the demands of the four occupying powers and the Austrian economy. However, because of the dilapidated and obsolete condition of equipment and installations and the fact that a great part of the repair work had been on a temporary basis, operations in general were being carried on uneconomically. Traffic via rail and highway transport had returned to pre-war levels but operations were far from normal. Soviet policy continued to block free navigation on the Danube, however, the channel, harbors and craft were undergoing repair of war damages in preparation for the day when free navigation would be resumed.

Denazification of employees took an unusually high toll of workers. There were 3,050 party members employed, which represented approximately 23% of the total employment. Of these, 1,517 were discharged without notice, and 1,503 were pensioned after notification.

45

COMMUNICATIONS

Background
Pre-Anschluss
Administration of Austrian communications has always been controlled by the Austrian Post and Telegraph Administration, an organ of the Federal Government. This office operates the postal system, telephone and telegraph services and radio communications. Prior to 1938, the administrative head of the organization was the Director General, whose position and functions corresponded to those of the Postmaster General of the United States, but with the additional duty of supervising radio and telecommunications. The Director General had complete authority within his sphere of operations, and the Post and Telegraph Administration itself was an independent governmental body. The Director General /however, did not have cabinet rank and was responsible to the Minister of Trade and Commerce. The administration of the Post and Telegraph Administration was highly centralized, but the local administrative districts, while not independent of the central office in policy matters, were so organized that they were capable of nearly autonomous operations. It was, therefore, a comparatively simple matter for the Germans, when they annexed Austria in 1938, to dissolve the central administration and integrate it into the German postal system without disturbing the existence or operation of the local administrat ive districts. The personnel of the Austrian post, telephone, and telegraph offices were practically all civil service employees. The top ranks were filled either with law school or with technical school graduates; the lower ranks were recruited on the basis of successful completion of special training courses or civil service examinations. Altogether there were 25,251 civil service employees of the Postal Administration in 1937. The Postal System Postal services were essentially the same as those in most other countries of the world. The addressing system was based on postal zones such as are presently used in the United States. In Vienna a network of pneumatic tubes was widely used for rapid distribution of telegrams, letters and postcards. Although domestic airmail was almost non-existent, Austria participated in a sizeable international airmail traffic because of her position as a central European communications center and because of the constant presence within Austria of large numbers of foreign tourists. Distribution of mail to remote rural areas not served by railroad was accomplished through the Austrian Post Office Bus System. Although the service was started purely for the purpose of mail distribution, the Post Office bus routes were, and still are, an important part of the public passenger transport system of Austria. In 1937, the Post Office operated a fleet of 751 buses which served 185 routes totalling 4,550 miles. The extensively used Austrian Postal Savings Bank was actually a part of the Ministry of Finance but often used the postal facilities to offer its depositors a convenient method of banking their money. The Telephone System In the mid-1930's, the Austrian telephone system compared favorably with those of other European countries in the amount and width of distrib ution of equipment, although at the time of the Anschluss much of it was obsolete. The telephone service was by far the most important part of the telecommunications system and ranked second only to the combined postal services as a source of income to the Postal Administration. In 1936 Austria had 2,045 miles of long-distance cables. Underground cable comprised one-quarter of the existing lines. In December 1936, there were 279,000 telephones in Austria, an average of 4.03 per hundred inhabit ants. Over half of the sets were installed in Vienna, which had between one-third and one-fourth of Austria's population. At this time, there were two automatic exchanges which had to a certain extent replaced manual operation. By 1938, average automatization throughout the entire Austrian system was 24%, while in Vienna, because of the exceedingly heavy telephone service demand there, approximately 72% of the exchanges had been con verted to automatic operation.
The Telegraph System

In comparison with other services, at the time of the Anschluss, telegraph services were declining rapidly and had fallen far behind most other European

46

nations. All transmission of messages was on a manually-operated Morsecode basis. Teletypewriter service had been introduced to Austria in 1935 but had been confined to use on a few international lines and on a few lines rented to commercial customers for their exclusive use.
Radio

The administration of all radio services had originally been organized as a branch of the Post and Telegraph Administration, but development and operating costs had proved so high that the government had been obliged to sell its interests to two joint stock companies, RAVAG and Radio Austria. RAVAG operated a monopoly of all entertainment broadcasting but was still controlled by the Postal Administration through this government body's control of telephone lines and broadcasting licenses. Its ownership was split among the Austrian Post Office (30%), Austrian National Bank (20%), City of Vienna (20%), Bank of Styria (20%), and three private telephone manufacturing concerns, who between them owned the remaining 10%. Radio Austria operated a monopoly of radio-telegraphic services in Austria. It was 70% owned by the Marconi Wireless Telegraph Company of London, with the other 30% held by private Austrian stockholders, making it the only privately owned company in Austria which enjoyed official monopoly rights.

The German Occupation

Immediately after the annexation of Austria by Germany in 1938, the Germans moved the headquarters of the Post and Telegraph Administration from Vienna to Berlin. Germans were installed in the key positions of the new consolidated German-Austrian Postal Administration, with the Director General, whose title was Postal Minister, having full cabinet rank in the Reich government. Despite the fact that the changeover was accomplished almost overnight, there were no technical difficulties, and business on the actual operating level proceeded as usual. Austria's six postal districts were bound to the German postal system, which was similar in structure, by the appointment of six regional presidents, who were directly responsible to the Postal Minister in Berlin. The old topheavy Austrian central administration was simply abolished. In the local postal districts, the changeover went practically unnoticed.

Ultimately, however, the change made itself felt in the personnel situation; on the date of the annexation of the Postal Administration, 19 March 1938, there were approximately 28,000 employees in the Austrian Post and Tele graph Administration; when Austria was re-established as an independent nation in April 1945, there were about 81,000 employed in what had been the Austrian Postal Administration. Naturally, the bulk of the increase had taken place at the lower and middle grades. Many of the higher ranking jobs which were retained under the Germans had already been infiltrated by pre-Anschluss Austrian Nazis. Anti-Nazis were quickly purged from all levels. To fill these vacancies, as well as many new jobs which had been created in the interests of greater efficiency or for purely political purposes, the Nazis conducted an intensive recruiting campaign which was largely based on a simultaneous Nazi Party membership drive. Jobs were always available to party members. By such methods the Germans soon trebled the employment figures of the once understaffed Austrian Postal Administration. Two other factors which entered into the increase in size of the organization were the re-incorporation of RAVAG and Radio Austria in the Postal Administration and the shifting of the Postal Banking Service from the Ministry of Finance to the Postal Ministry. German influence on the Austrian telephone system had begun in 1925, when a ^concession had been granted to the German Post Administration permitting the Germans to carry out an extensive physical development of the Austrian system. In 1926, under this program, the first underground telephone cable had been laid in Austria. By 1940, the Germans had laid a broad band cable between Munich and Vienna. Most of Austria's other telephone equipment, however, was nearly obsolete at the time of the Anschluss. It is reasonable to assume that the Germans also improved the telephone equipment during their occupation. The Germans were also responsible for the considerably increased use of the teletypewriter in Austria and for the expansion of the system of auto matic dial telephone exchanges to a large degree. As previously indicated, the administration of RAVAG and Radio Austria came under the control of the German Postal Ministry, but actual control of the broadcasting was vested in the Ministry of Propaganda. Postal services in Austria were virtually unaffected by the German occupation; the type of mail handled changed, however, with letter traffic falling off considerably and money order business increasing. In addition,

47

PERSONNEL OF THE AUSTRIAN FEDERAL POST

IN THOUSANDS OF PERSONS

had been destroyed or badly damaged; and many of the higher ranking officials, for the most part staunch Nazis, had fled their jobs when it became obvious that the final defeat of the German armies in Austria was imminent.

Developments to the End of 1947

Administration

PREPARED 8Y U.S. ALLIED COMMISSION AUSTRIA

Figure 18

the Germans introduced a few new minor services and rearranged somewhat the postal zones. The Post Office Bus routes were expanded in number from 182 to 443, and mileage from 4,550 to 9,800.

The first step necessary to the rehabilitation of the administrative machinery of the Postal Administration was the denazification of the personnel roster. This task had been partially accomplished through the flight of some of the Nazi officials, but an extensive purging was still necessary. It was not as easy, however, to find suitable replacements for the personnel who were thus fired. By the end of 1946, the total number of employees on the Postal Administration payroll had dropped to 39,812, of whom 12,371 were office employees, 4,643 were classed as laborers, and 21,966 were special contract employees, hired for the most part for reconstruction work (see Fig. 18 and St. A. Table 47.) By the end of 1947, the total number of persons on the payroll had reached again 41,736. This, however, was generally considered to be a sign of normal development, resulting from employment of new and young personnel. Simultaneous with the rehabilitation of the personnel, a program of physical reconstruction took place. The Central Post Office in Vienna had been demaged beyond use by bombing. Many of the branch and sub sidiary offices throughout Austria had also been destroyed or damaged. By the end of 1947, new buildings had been erected and damaged buildings had been sufficiently repaired to carry on the business normally.
Postal Operations

Post-War Austria
General Conditions at the End of the War
When the German Reich collapsed in the spring of 1945, the Austrian portion of the German Postal Administration completely ceased operations. The operating districts had lost their central direction from Berlin; trans portation facilities for the entire Austrian administration consisted of one horse-drawn vehicle; telephone and telegraph equipment, as well as buildings

During the summer of 1945 postal services in the city of Vienna were almost at a standstill. During August the mail items which had accumulated during the last few weeks of the war were distributed, but beyond that, operations were limited to slow local service. There was no flow of mail across the zonal demarcation lines, and no international mail traffic existed. Even if there had been no hampering regulations, it would have been virtually impossible to render these services owing to the severe damage suffered by post-office buildings and other equipment. Four of the five railroad post offices had been destroyed, transportation facilities were non-existent, and the condition of the undamaged post offices was chaotic because of the extensive looting which had taken place.. The parcel post

48

office in Vienna had been completely burned down, and the post offices at Wiener Neustadt and Bruck a. d. Leitha, both in Lower Austria, had been totally destroyed. Thioughout the rest of Austria the damage Md been less, but there lack of transportation equipment and the restrictions on mail traffic imposed by the four occupying powers kept the flow down to a trickle. By September 1945, postal services had been about 20% restored. Near the end of that month, quadripartite coordination on postal matters was achieved, opening the zonal boundaries to a free flow of mail. By 10 October 1945, all branches of the postal service were functioning on a limited scale. Owing to the lack of normal transportation facilities, extensive use was made of messenger service and horse-drawn vehicles. During 1946, the occupying powers made an increasingly large number of motor vehicles available, so that by the end of the year it was estimated that postal operat ions were almost 80% restored. It is interesting to note that the volume of letter mail handled in 1946 was greater than in 1947 (see Fig. 19 and St. A. Table 48). There were several reasons for this. In the first place, by the end of 1945, a tremendous backlog of mail had accumulated in the post offices of Vienna which was gradually released in 1946. Moreover, the chaos accompanying the end of the war had scattered families and groups of friends throughout Europe, and the first thoughts of hundreds and thousands of Austrians was to locate missing friends and relatives. Communication by telephone or telegraph was impossible, and railroad travel was nearly as bad, so millions of letters were written in the quest for information. The large drop in the volume of letter mail from 770 million in 1936, and 628 million in 1946 to only 483 million in 1947 was due solely to the fact that the Austrian public felt and with good justification that internal Austrian mail was still censored by the Soviet Element in spite of the Allied Council agreement of October 1946. People have learned to be extremely cautious with their correspondence to and from Vienna and the Soviet Zone in order not to jeopardize the safety of their friends and relatives. On 2 January 1946, a restricted international letter mail service was Tesumed with all countries except Germany and Japan. Beginning in April of the same year, this same service was opened with Germany. A limited international air mail traffic was started again on 25 March 1946. During the rest of the year several additional relaxations were achieved liberalizing international mail service still further. In October 1946, Austria was read mitted to the Universal Postal Union, but at the end of 1946 some restrictions

VOLUME OF LETTERS AND PARCEL POST AUSTRIA

1936,1946 81947
LETTER MAIL 1,000,000 UNITS PARCEL POST 100,000 UNITS
200 100
0 0 I

ri

SO10

400

500

^^^^^^H 1 3 H 96

IE
III
INTERNATIONAL
(IWC0MING,0UTGOIN6,TRflNSIT)

1'1'1 1 f1

I^^^^^^H 1 4 H 96 HH1947 H
I 1 1 1 f' 11

^ ^ H INLAND
PREPAREO BY U.S. ALLIED COMMISSION AUSTRIA

Figure 19

still remained. By the end of 1947 the only restrictions still in force were on business correspondence between Austria and Germany, Japan and Spain. Resumption of international parcel post was much slower. Even within the country in 1945 there were strict limitations as to weight and content of parcels. These restrictions were gradually lifted during 1946, so that by the end of that year internal parcel post had returned almost to normal. On the other hand, international incoming parcel post service was not resumed until June 1946, and parcels from Austria to foreign countries were permitted only in February 1947, in both cases Germany and Japan excepted. Even by the end of 1947, strict regulations on international parcel post with regard to weight, contents etc., were still in existence varying from country to country (see Fig. 19 and St. A. Table 49). One of the greatest difficulties in the rehabilitation of the postal services of which a network of bus lines was an integral part (see also p. 42) was the restoration of the motor park of the Postal Administration. In the spring of 1945, the retreating German armies had requisitioned all motor vehicles belonging to the Postal Administration and had moved them westward where many were destroyed or became otherwise irretrievable.

49

Only a few trucks and buses were recovered during 1945. However, miscellaneous vehicles were contributed by the occupying armies and by UNRRA, so that by the end of 1946 most postal bus and truck delivery routes had been restored to some degree of service. Some new Diesel buses were purchased from Italy in 1947, but the lack of fuel, tires, and spare parts so hampered operations that at the end of 1947 bus and truck routes were only about 30% served.
Telephone Operations

At the end of the war all telephone service in Vienna and most of the rest of Austria was at a standstill. Service in central and western Austria was restored in June 1945, but owing to extensive equipment removals by the Soviet forces as war booty and to restrictions imposed on telephone service by the occupying powers, service in Vienna was not resumed until August 1945. On 8 September 1945, eight exchanges in Vienna were still completely inoperative because of war damage. Important local service requirements which had normally been served through these exchanges were routed through others. Practically no exchanges, however, were able to offer anything like normal service. Switchboard and cables had been damaged during the war, and all reconnects were subject to approval by the occupation power governing the particular district. Local service gradually improved as captured enemy war material was released to the Austrian Government and as war damage was repaired. In some cases restoration of partially damaged central exchanges was accomplished through moving equipment to new locations where it could be more efficiently utilized. Long distance service was partially restored in 1945, but equipment damage seriously hampered full resumption of service. The principal Austrian long distance exchange, located in Vienna's first district, had been damaged by bombing but was still in usable condition at the end of the war. However, the Soviet forces removed 72 of the 164 positions of the long distance switchboard as well as a great deal of high frequency carrier equipment. The coaxial cable between Vienna and Salzburg was rendered useless by the physical removal from the ground and from Austria of the section between Vienna and Bruck a. d. Mur in Styria. As a result of the loss of all of this equipment, it was necessary for each of the occupying powers to make available to the Austrian Government as much repeater and other equipment as was necessary for the restoration of essential military telephone traffic. Early in 1946, a limited international long distance service was technically restored, but the actual level of service attained

was very low. Quadripartite approval was needed for all new international services, and Soviet policy blocked the restoration of most internationa contacts. The military requirements of the Soviet Element used all of the highest grade equipment available regardless of the needs of the Austrian Government and private users. What service was available to the Austrian economy was exceptionally poor, owing to the necessary use of non-quaded cable and other inferior equipment. By the end of 1947, war damage had been repaired to a sufficient extent and enough lost equipmant had been replaced to enable handling of all traffic permitted under Soviet restrictions (see St. A. Tables 50 & 51).
Telegraph and Miscellaneous Wire Service Operations

The restoration of telegraph services closely paralleled that of telephone services. The Western Allies, however, took the opportunity offered by the need for replacement and repair of much of the equipment, to give a minimum of assistance to the Austrians in the restoration of their antiquated handoperated Morse sending equipment, while at the same time giving the maxi mum possible aid in repairing and installing teletypewriters and subsidiary equipment. In the US, British, and French Zones this policy resulted in a great improvement of telegraph services. In the Soviet Zone, restrictions imposed by the Soviet Element on teletypewriter service discouraged the expansion of this type of facility. Dial teletypewriter service, which had been greatly expanded by the Germans, received a severe setback in Vienna when the Soviet forces removed most of the equipment and transported it out of Austria. The three Western Elements partially remedied this situation by coordinated movement of similar equipment from their zones of occupation into Vienna, so as to give equitable distribution of service throughout as much of Austria as was possible. The principle obstacle in the way of full exploitation of teletype writer service has been the continuation of restrictions on such service in the Soviet Zone, and along lines which cross international frontiers (see St. A. Table 52).

Censorship
In May 1945 upon entry of the Allied armies into Austria, one of the first acts of the several commanders was to institute censorship over all means of communications within their zones. This was a matter of military necessity, in order to safeguard as much as possible the security of the troops.

50

During the fall of 1945, negotiations were carried on among the four cocupying powers to achieve a centralized control over censorship. In October 1945, there was no civil censorship in Vienna, and the three Western Elements proposed that international communications be screened in the capital. The Western powers also favored Allied operation of censorship, while the Soviets wished to make this an Austrian responsibility. Finally it was decided that the Vienna Censorship Office should censor, under Allied control, all civilian telephone and telegraph communications and the Vienna Postal Censorship Oflice would censor international mail originating from or addressed to Vienna. Besides these offices in Vienna, censorship was carried on in the various zones. As the rehabilitation of the country progressed and the situation became more normal during 1946 the necessity for censorship for the sake of security of the Allied troops decreased proportionately. As a matter of fact, censorship became increasingly burdensome and slowed down all postal services con siderably. Business in particular was hampered in its reconstruction efforts by the retarding effect of censorship. The Western powers soon realized this situation and on the instigation of the British Element and after careful quadripartite study censorship of internal Austrian mail was discontinued on 4 October 1946, as a first step by the Allied Commission. From this time on the three Western powers continued their efforts to further relax, or if possible abolish all censorship in Austria. However, the adamant position of the Soviet Element allowed only a limited success. During the fall of 1947 the three Western Elements abolished, in their respective zones, all censorship of international mail, excepting mail to or from Germany and Japan. But in the Soviet Zone and in Vienna censorship of international mail continued because of Soviet insistence. In September 1947, the British Element announced the abolish ment of censorship of internal telegrams and this good example was soon followed in the other zones. It was further followed by the abolishment of internal telephone censorship. Nevertheless, to the end of 1947 centrally controlled censorship on all international wire communications remained in force in spite of repeated efforts by the Western powers and particularly the US Element to relax or even abolish all censorship in Austria. To what extreme absurdities this insistence on continued censorship could lead is illustrated by the fact that a telephone call from Vorarlberg to Switzerland often over a distance of only ten miles or less had to be routed over 600 miles of line through Vienna for screening. It is clear

that under such conditions existing line facilities were greatly overtaxed, resulting in long and unnecessary delays of international telephone communic ations. Requests by the Austrian Government for decentralisation of international communication censorship merely led to unproductive action in the Allied Commission. The three Western Elements in January 1947, proposed in the Allied Commission that censorship responsibility be handed over to the several Commanders-in-Chief for their respective zones in order that local stations could screen international communications near inter national borders. However, this met with an adamant refusal by the Soviet Element. The latter merely suggested that internal circuits be expanded in order to facilitate censorship in Vienna, but at the same time refused to grant permission for the establishment of any new circuits. By the end of 1947 this situation was still unaltered and it remained one of the retarding elements in the rehabilitation of Austria. There was not even much hope for a change to the better in the near future.

Radio
In 1945 Austria's most powerful transmitter at Vienna-Bisamberg in the Soviet Zone, was totally destroyed by SS units of the retreating German army and by the end of 1947 it had not yet been restored to operation. Such other transmitters as there were in the US, British, and French Zones, were taken over immediately by the occupying forces. To the end of 1947 these facilities have remained in the hands of the occupying powers but the degree of supervision exercised and of technical assistance given in the rehabilitation of radio broadcasting has varied from zone to zone. The Soviet Element has given neither technical nor financial support in their zone. The Austrian Post and Telegraph Administration soon after cessation of hostilities installed a 10,000 watt station in Vienna, as a tempor ary replacement of RAVAG's destroyed Bisamberg transmitter. The new station operated on a frequency of 592 kilocycles, the old Bisamberg fre quency. In outward appearance there was no visible control by the Soviet Element to the end of 1947. Yet every word that was broadcast over this station had first to pass through the most painstaking Soviet censorship control. Anything that displeased the censor was taken out and the most careful monitoring of every program ensured that no deviations from the censored text occured. Moreover, the Soviet Element soon introduced certain programs, which were sponsored by the USSR and contained pro

51

paganda material and Soviet-slanted news. Both of these types of programs, although light in the beginning increased as time went on. In the US Zone all radio facilities remained to the end of 1947 under the control of the US Element. In 1945, the Red-White-Red network was established with transmitters in Salzburg, Linz and later in Vienna. Much technical assistance was rendered to repair war damages and to improve the facilities. Austrian personnel was hired for broadcasting but the pro gramming was controlled by US personnel. Foreign language broadcasts were introduced first in order to serve the large population of displaced persons and later they were also beamed to adjacent countries. Nevertheless, the Austrian population was well served through excellent news broadcasts and entertainment programs. In the British and French Zones too, radio facilities to the end of 1947 remained under the supervision of the occupying powers. The British Element in its zone had established the "Alpenland" network with trans mitters in Graz and Klagenfurt and a relay transmitter in Vienna. The French Element established the "Sendegruppe West" with transmitters in Dornbirn in Vorarlberg and Innsbruck in Tyrol. Control over these networks was very light. The British Element merely exercised general supervision leaving most matters including programming to an Austrian staff. The French Element merely reserved the right to be consulted before any dismissals or new appointments were carried out. Protests from the Austrian Government, the Austrian Trade Union Federation, and other Austrian sources, beginning in 1946, that radio control should be no longer in Allied hands had met with no tangible results to the end of 1947. It has been impossible to reach quadripartite agreement to Austrian Government operation of radio facilities free of influence by any occupational power. And there seems to be little hope that this question could be settled in the near future. From the beginning of the occupation radio networks in the zones had to struggle with considerable financial difficulties. The income of Austria's

radio networks always had been derived from annual taxation of radioreceivers throughout the country. After the war there was only a very limited amount of commercial broadcasting (about one hour a day) by RAVAG, Alpenland and Sendegruppe West. The income from taxation is divided up among the networks in the various zones according to money collected in those zones. RAVAG received by far the largest amount, about S 1,000,000 a month, because the greatest number of receiving sets are in Vienna and Lower Austria. The other networks received a much smaller share and were therefore often at a disadvantage, struggling with financial difficulties.
Radio Austria

The Radio Austria transmitters and receivers in Vienna and at DeutschAltenburg, Lower Austria, were completely destroyed during the war. They have been restored, however, with the assistance of the three Western Elements. By December 1947, contact had been restored with eight foreign countries, as compared to twelve prior to 1938 and twenty one during the time of German occupation. The amount of traffic over these channels had been severely limited, because of censorship restrictions, and a strict, control over foreign exchange by the Austrian National Bank.

Conclusion
The limiting restrictions over Austria's foreign communications services by the end of 1947, represented a severe handicap in the rehabilitation of the country. These restrictions were due almost solely to the uncompromising attitude of the Soviet Element, which refused to give up any of the controls of censorship or permit the expansion of telephone and telegraph circuits to meet Austria's increasing requirements. Because of thjs adamant position of the Soviets there is very little hope of bringing about any important improvement in the near future.

52

THE STORY OF AUSTRIAN AVIATION

Introduction
Austria's Air Importance
Situated at the crossroads of Central Europe, Austria is important from an aviation viewpoint in much the same way that she was a vital factor, throughout history, in the economic and political life of Europe. Geographic ally in a position to control the Danube valley, Austria finds herself today a key factor not only in military air strategy, but also in the economic struggle for rehabilitation of the whole continent. Lying astride the dividing line between Eastern and Western Europe, Austria is once more in a position to be the means whereby these two halves may be joined. Austria's air importance, however, is not confined to political and military significance alone. In the rehabilitation of Europe, Austria's civil aviation could exert a useful influence on industrial and economic developments throughout Eastern and Southeastern Europe. First-class communications are a necessity rather than a luxury for Austrian prosperity, whether those communications are utilized for transporting tourists or exporting specialized domestic products. Before the second world war, a network of foreign airlines radiated outward from Austria to nearly all European countries, serving the nation's industry in much the same manner as did the railroads and waterways. Internally, Austria's single ma j or airline OELA Gspeeded up the movement of tourists and businessmen within the country and provided also a means for swift ship ment of industrial and perishable agricultural commodities (see Fig. 20). Today, under extremely difficult conditions, Austria seeks to develop new industries. More than ever before in her history, she is dependent on communic ations. She has an urgent need for technical assistance, and she must also secure vitally important equipment and supplies. But without the economic and technical help from abroad, Austrian aviation remains helpless. US Air Mission in Austria Such aid could be forthcoming. It was the aim of the US Element from the beginning of the occupation to re-establish the country's civil aviation on a basis to meet international requirements. To accomplish this, some of the immediate objectives have been: To establish Vienna as an international air center, with a central metro politan airport; To develop modern ground facilities for Austrian civil aviation; To secure membership for Austria in the International Civil Aviation Organization (ICAO). In these aims the other two Western Elements concurred. But the diffi culties which arose were again and again put forward by the Soviet Element, whose established policy seems to be to hinder the development of Austrian civil aviation unless it will submit completely and unilaterally to Soviet tutelage. In order to obtain a clear picture both of Austria's present status and of her potential future role in the international aviation scene, it is first necessary to understand the extent, and the limitations, of the country's aviation. Outside of Austria, little is known of the nation's early scientific contributions to aeronautics. The importance of these contributions was considerable. Her vigorous sport aviation program, the struggle to revive civil and military air activity in the years 19191938, Germany's influence on Austrian aviation after 1938, and finally the extent of the Austrian air effort during World War II, must all be taken into consideration before an estimate can be made of the past.

The History of Austrian Aviation

Early Scientific Contributions to Aeronautics
In the early days of aviation, Austria played a leading role. Several Austrian scientists were prominent in the establishment of aeronautical foundations; Boltzmann and Mach (physicists), J. Hann (meteorologist), and Scheimpflug and Boykow (aero-photogrammetrists) were all active in early research on aeronautical theory. Other Austrians helped to create the theoretical basis for aircraft construction, among them Prechtl and Exner, who conducted research on the flight of birds; Knoller, with his theory of glider flight and his work in air resistance and propellers; Wellner, a noted aeronautical scientist who pioneered in propeller settings; and Nimfuehr, an internationally-known aeronautics authority.

53

N 0 HTH -S A

.
1

KAUNAS f ;

NETWORK OF OELAG OPERATIONS

1937

PREPARED BY

U.S. ALLIED COMMISSION AUSTRIA

54

Austrians were also prominent in the field of design and invention of early flying machines,. Wilhelm Kress built the first stable model of an aircraft in 1884, and even though his first flying attempts failed because of the ex cessive weight of the machine's power unit, later developments proved that Kress* basic ideas had been correct. Igo Etrich made record-setting flights of 250 meters in 1906, using "flying wings," and a glider which he built in 1907, "The Dove," became a model pattern copied in other countries. Two Austrian engineers, Paulal and Von Umlauf, designed the Lohner "arrow-craft," which was the forerunner of European bi-planes. Still other Austrians worked on helicopters, a field in which this nation particularly excelled. The Austrian Air Ministry's helicopter, in 1916, estab lished a world record by remaining at an altitude of 50 meters for thirty minutes. After the First World War, several Austrians set new world records in international helicopter competitions.
Austrian Aero Club

less. As a result of the Armistice and the Treaty of St. Germain, all aviation materiel and facilities had to be destroyed. Only three airports were left intact Wien-Aspern, Graz-Thalerhof, and Klagenfurt-Annabichl. Not until approximately ten years later was the use of aircraft permitted in Austria, but even then military planes were still banned. Under Article 147 of the Treaty of St. Germain, Austria was prohibited to produce, import, or export aircraft or aviation materiel. Later, when this prohibition was cancelled, Austria was still bound by the "Regulations for Distinguishing Military from Civilian Airplanes." "Military" aircraft were defined (and therefore prohibited) under the classes of aircraft below: 1. Single seaters with performance over 60 hp. 2. Pilotless aircraft. 3. Aircraft with armament, arm, bombsight, or bomb release device. 4. Aircraft carrying over 2000 pounds, including crew weight, with service ceiling over 13,300 feet with full load, or with top speed over 110 mph.
International Air Activity

Sport aviation was introduced in 1901, when the country's first aeronautical organization the Austrian Aero Club was founded for the purpose of promoting balloon flying as a sport. The club's first president was Viktor Silberer, a world prominent balloon pilot. In 1908 the Aero Club joined the International Aeronautical Association, and subsequently sponsored the first Austrian "Aviation Week" at Wiener Neustadt, featuring cross-country and local flights as part of the program. In 1912 Aspern Airport, on the outskirts of Vienna, was constructed by the Aero Club. In the same year, the first international aviation exhibition was held in Vienna. Altogether, before the outbreak of the First World War5 about 445 balloon ascents were made, many of them serving scientific purposes.
World War I

Meanwhile, although Austria had been granted limited membership in the League of Nations in 1920, she refused to join the CINA (Commission Inter nationale de Navigation Aerienne) which had been organized in Paris, conten ding that she could join only as a fully-recognized League member. She did, however, become a member nation of the CAI (Conference Aeronautique Internationale), which was concerned with international coordination of various traffic and technical problems of civil aviation, including radiocommunications, flying safety, and meteorology.
Austrian Aviation Bureau

During World War I, Austrian air activity was naturally confined to milit ary efforts. The Austrian Air Force was relatively small. It consisted mainly of reconnaissance squadrons attached to ground units, and it played only a minor role in the war effort of the Central Powers. Air Restrictions after the War When the war ended in 1918, only a handful of Austrian Air Force pilots remained to carry on the country's flying tradition, and in the face of air restrictions laid down by the victorious Allies, even this small group was help

Within the Austrian Government, civil aviation was supervised by an Avi ation Bureau. This bureau was responsible for technical questions, legal problems, and financial transactions. It also supervised the enforcement of the restrictive laws governing Austrian aviation. This particular function required the employment of specialists in aircraft testing, radio-communic ation, air safety, meteorology, and flight medicine.
Revival of Sport Aviation

With the gradual revival of aviation, the Austrian Aero Club, which had completely suspended operations during the war, resumed its activity. By 1931 the club was maintaining four airplanes to furnish refresher training for former pilots, and had organized a course for glider-towing at Aspern.

55

Under the leadership of the late Prince Ulrich Kinsky, a wealthy and wellknown sportsman, the Aero Club was able to keep aloof from all political ties and to concentrate solely on flying. A considerable number of other glider-flying groups were organized through out Austria during these years. In 1934 these groups were subordinated to the Aero Club and organized into the Osterreichische Luftfahrerverband (Austrian Aeronautical Association). It was a vigorous period for glider activity; several world records were set by Robert Kronfeld, then generally regarded as the dean of Austrian glider pilots. Glider-towing courses were also conducted at Wiener Neustadt where the Austrian participants in the 1936 Air Olympics were trained.
OELAG Austria's Airline

Upon incorporation, the Company was removed from the Commercial Register, its license was suspended, and by the end of 1938 its membership in the International Air Traffic Association had been cancelled. All leading positions were taken over by Germans, and OELAG became the Southeast District of the Deutsche Lufthansa A. G., operating the routes to the Balkans. Pre-war activities (19381939) of the Deutsche Lufthansa in Vienna were similar to those of the pre-Anschluss Oelag, except that management personnel were now selected for the advancement of German policies and were totally subordinated to Berlin. Air traffic increased tremendously, with passenger mileage rising 80 % and air mail tonnage climbing an incredible 150%. The Austrian Aero Club was incorporated into the NSFK (Natiohal sozialistisches Fliegerkorps), whose first act was to dismiss the popular Kinsky as president. At the time of its seizure by the NSFK, the Aero Club owned about 24 power planes and other property valued at about S 700,000. Its active membership was then between 800 and 1000. At the time of the Anschluss, the Austrian Air Force, which had begun to be reorganized in 1936, boasted a total of 93 aircraft. All of these were obsolete models. Its nature was more that of police unit than a military air force. And while pilot training in Germany had already become highly specialized, Austrian airmen were still being given an over-all course, including mechanical training. With the incorporation of Austria into the German Reich, the Austrian air position changed completely. An overall administrative organization such as Austria had never seen came into existence. The entire country, except Tyrol and Vorarlberg, was placed under the jurisdiction of Luftgau kommando XVII, with headquarters in Vienna. The Austrian Air Force was absorbed into the German Air Force. The Nazis methodically began the job of streamlining Austria's aviation. Luftflotte 4 was organized under the command of the Austrian General Loehr, and a higher training command was established. Personnel drawn from the Reich increased, while many Austrian technicians were transferred to Ger many for additional training. Plans were put into action for construction of new airfields and enlargement of existing fields, the greatest concentration naturally being in the Vienna area. The Germans rapidly geared Austria's air potential for the coming war.

In the field of commercial aviation, Austria's only major airline before the 1938 AnschluB was the Osterreichische Luftverkehrs A. G. (Austrian Air Traffic Company). This enterprise, known popularly as "OELAG," was founded in 1923 at Vienna with a capital stock of S 800,000. Heavily subsidized by the Austrian Government, OELAG was also backed by the German airline Deutsche Lufthansa A. G., which owned 50% of the stock. Originally, OELAG's chief function was to represent the various incoming foreign airlines on the ground. For this purpose it operated Aspern Airport, which was at that time the only landing field in the Vienna area. OELAG's activities, however, soon increased. By 1928 it was operating six routes covering about 1,500 miles, to points as distant as Iraq, in conjunction with the Deutsche Lufthansa and Italian and Hungarian lines. By 1930, the company's routes had expanded to nearly 2,500 miles. Between 1930 and 1935, which were years of economic and financial crises in Austria, the mileage declined, but in 1937 route mileage had again risen to the 1930 figure (see Fig. 20 and St. A. Table 53). The Nazi Anschluss After the Anschluss in 1938, OELAG was taken over by the Deutsche Lufthansa A. G. The company's assets then consisted of about S 2,000,000, 22 completely furnished offices, ten Junkers aircraft, 48 spare engines, and elaborate airdrome equipment at Aspern, including complete repair shops and storage rooms. OELAG's staff numbered 162, including 61 management personnel, 21 flying personnel, and 80 technical employees.

56

World War II

Occupation and Air Rehabilitation

End of the war
When the war ended in the spring of 1945, aviation in Austria was naturally brought to a complete halt. Except for flights by aircraft of the occupying powers, all air activity over Austria had ceased.

During World War II there were (in addition to the training units, schools, permanent fighter defense divisions, and combat units temporarily based in Austria) certain special air units operating from Austrian bases. These were: Uberfuhrungsgeschwader Stidost (Southeast Aircraft Ferrying Group). The 3rd Squadron of this group was based at Aspern and had the task of delivering new aircraft to the Balkan and Eastern fronts, and bringing back obsolete or used aircraft to the schools for training purposes. Pilots relieved from combat duty, NSFK pilots, and, sometimes, female pilots were used for these assignments. Luftdienstkommando (Air Service Unit). This unit, based at Wiener Neu stadt, was used for target towing, for anti-aircraft practice, instrument test flights, and for exploding underwater mines by electro-magnetic means. (Mines laid in the Danube by Allied aircraft were thus exploded from the air by JU 52's.) The Courier Squadron at Aspern and Wiener Neustadt was a general purpose unit of transport and passenger planes used for swift transmission of communications, transportation of general staff officers, etc. The Fiihrer Squadron, based on Salzburg-Maxglan airfield, was Hitler's personal squadron. It was used for transporting his staff, guests, and impor tant Nazi visitors between Berlin and Berchtesgaden. As the war progressed, air attacks necessitated the dispersal of storehouses and workshops from airfields to nearby villages. At Aspern, for example, the whole airdrome establishment was moved westward to Enns (Upper Austria) when the front moved westward toward the end of the war. Air traffic dwindled until only two air routes were maintained: Vienna-Berlin, and Vienna-Zagreb. Even these two routes were, of course, discontinued when the Soviet armies overran the Balkans and captured Vienna. A special phase of aviation during World War II which is noteworthy was Austria's share in the development of aircraft design. Several Austrian scien tists and engineers worked with the development of aircraft that exceeded the speed of sound. Prof. Dr. Wagner designed a most successful jet power unit, and Dr. Brandtner constructed the Jumo 222, one of the best aircraft engines of the war. Ferdinand Porsche, who had previously built conventional aircraft engines and had established the prototype for the DB series with his DB 600, also designed a jet unit which in weight and performance was one of the best in the field. Alexander Lippisch designed the Me 163 jet aircraft and was working on several models of tail-less aircraft when the war ended.

Regulation of Air Activity

The Allied Council, as the supreme authority in Austria, and in accordance with the terms of the Potsdam Agreement, directed the Austrian Government in December of 1945, to take action to achieve the complete demilitarization of the country. Specifically prohibited were the production, acquisition, and development of all types of aircraft and gliders. The Amt fiir Luftfahrt (Aviation Bureau) was ordered dissolved and the Austrian Government was forbidden to maintain, without permission of the Allied Council, any directorate or department connected with aviation. Further, no company (limited, commercial, sporting or other) or public agency was to be founded for participation in commercial aviation without Allied Council permission. This had the effect of banning any kind of aeronautical activity unless expressly authorized by the Allied Council.
Interim Air Agreement

In June 1946, the use of air space over Austria for occupation aircraft was regulated by the Allied Council by means of a quadripartite agreement titled "Interim Air Agreement for Air Traffic Over Occupied Zones of Austria." This became effective on 1 July 1946. It can be considered as the starting point of air rehabilitation in Austria. The Agreement provided routes, clearance procedures, etc., for use by aircraft of the four occupying powers. Nevertheless, there followed many dis agreements between the three Western Allies on the one hand and the Soviet Element on the other. The latter, taking advantage of their control of the approaches to Vienna, attempted, through their interpretation of the "Interim Air Agreement," to restrict Allied flights to Vienna. However, the firm atti tude of the three Western Allies and particularly of the US Element blocked attempts to increase restrictive measures on Allied flights.

57

Air Disarmament

Austrian Civil Aviation Department

Air disarmament was one of the most important of the early occupation missions. By the close of 1945, the primary and secondary phases of air dis armament had been completed. In the US Zone all known air targets had been demilitarized. The final phase, the disposal of war material and installations, was carried out during 1946. Similar steps were taken by the occupying powers to complete air disarmament in the British and French Zones (see Fig. 21). When the Western Elements officially announced that air disarmament in their respective zones had been completed, the Soviet Element refused to believe them. They claimed that only in the Soviet Zone had air disarmam ent been achieved. In August 1946, the Soviet Element introduced the subject of disarmament separately in the three Service Directorates Air, Military, and Naval. They proposed a plan for inspection of former war industries to include not only industrial plants but scientific and research establishments as well. The British, French, and US Elements rejected the proposal, reiterating that demilitarization was completed in their zones. One year later, however, coincident with the Air Directorate agreement for establishing a Civil Aviation Department within the Austrian Government, all four elements agreed to make a final study of the status of air disarmam ent throughout Austria. The plan called for inspection of seven establishments in each zone by quadripartite teams. When all the inspections were made, a report would be prepared by the Service Directorate concerned. The inspections were carried out but it was impossible to obtain an agreed quadripartite report. The British, French, and US Elements agreed that each of the targets inspected was completely demilitarized. They, therefore, agreed that the demilitarization of the aviation industry in Austria could be considered complete, and recommended that a resolution to that effect be submitted to the Allied Council. The Soviet Element was not agreeable to considering disarmament as completed. During the inspections they had considered a number of targets to be "not demilitarized." They claimed that they were not in a position to come forth with a conclusion on the state of Austrian demilitarization. Lengthy quadripartite discussions at various levels failed to reconcile the divergent points of view. By the end of 1947, no unanimous agreement had yet been reached on the status of air disarmament in Austria.

What can be considered to be the most important step in the air rehabilit ation of Austria was the establishment of a Civil Aviation Department within the Austrian Federal Government. Quadripartite discussion of this began on 11 October 1946, within the Air Directorate, following a request to the Executive Committee from the Austrian Chancellor for the establish ment of such a department within the Austrian Government. A resolution to this effect was forwarded to the Executive Committee. This resolution was supported by the British, French and US Elements. The Soviet Element dissented. In the Executive Committee meeting of 22 October 1946, the US Element stated its position on this vital question as follows: 1. This was not the re-creation of the Amt fur Luftfahrt (Austrian Avi ation Bureau), an agency previously abolished by the Executive Com mittee. 2. The occupation powers should proceed just as rapidly in creating a free and independent Austria as they had in demilitarizing the country. 3. The proposed department had no military significance. This position was accepted by the British and French Elements, but not by the Soviet Element. The resolution was then forwarded to the Allied Council. There the Soviet Element persisted in its stand that the proposal to create a Civil Aviation Department was "premature/' Finally, the Allied Council at a later meeting and after exhaustive discussion, agreed to request the Austrian Chancellor to submit plans to the Air Directorate showing the proposed activities of the Civil Aviation Department. The Chancellor promptly submitted detailed plans calling for initial organization of the department in five separate sections: Administration, Control, Construction Service, Technical Air Traffic Control, Weather Ser vice, and Testing. Soviet objection to the proposal continued throughout the spring and early summer of 1947. On 31 July 1947, informal Soviet agreement was obtained for authorizing the establishment of the Civil Aviation Department. Soviet concurrence was obtained, however, only after the US Element had consented to proceed with the review of the status of Austrian air disarmament, a project then keenly desired by the Soviet. Accordingly, the Allied Council on 14 August 1947 sent a letter to the Austrian Federal Chancellor authorizing the establishment, of the long-sought

58

AIRFIELDS IN AUSTRIA

PREPARED BY U.S. ALLIED

COMMISSION AUSTRIA

21

59

Civil Aviation Department, but limiting initial activities to planning for present and future needs of national and international aviation, with all work of a practical nature being subject to Air Directorate confirmation. By the end of August 1947, civil aviation personnel were being assembled and first steps in the organization were undertaken. While the decision to establish a Civil Aviation Department within the Austrian Government has been an important step toward rehabilitation of Austrian aviation, it must be pointed out that present authorization confines that department's activity to planning for future civil aviation and service installations. No provision is made for establishment of Austrian airlines, nor is such action contemplated in the near future. Unfortunately, there is still constant disagreement in the Air Directorate as to the interpretation of the limitations inherent in the authorization for the establishment of the Civil Aviation Department. The Western Elements hold that planning in every direction is authorized, while the Soviet Element is trying to restrict the Austrian department to the most rudim entary activity. Installation of ground-air facilities will require several years, especially since financial resources and technical personnel are scarce. Plans, however, are being developed by the US Element which should meet the basic groundair facilities requirements for Austria, if the Austrian Government should use the US plans as a basis for their own planning. A fundamental purpose in establishing airways facilities, both communication and navigation, is to ensure the adoption by Austria of the international system of airways operation. In the future, with material resources and trained personnel, it is believed that the Civil Aviation Department should be able to carry out the necessary plans for an adequate civil aviation system in Austria. Austrian Meteorological Service Closely allied with the establishment of the Civil Aviation Department is the organization of the Austrian Meteorological Service. In June 1946, the Air Directorate appointed a sub-committee of meteorologists to study the re-establishment of meteorological service in Austria. After two meetings, the sub-committee submitted the following recommendations, which were adopted by the Directorate: 1. That the Austrian Meteorological Service function under the direction and responsibility of the Austrian Government, effective 1 August 1946, subject to Air Directorate supervision to ensure fulfillment of the meteorological requirements of the four occupying powers.

2. That the central administration of the Service be located in Vienna. 3. That the personnel of the Service will not have Nazi affiliation nor hostile sentiments toward the Allied powers. In November 1946, the sub-committee reported that the Austrian Meteorol ogical Service was operating normally and satisfactorily, and recommended that the Allied Council authorize Austria to make application for affiliation with the International Meteorological Organization (IMO). This was done, and Austria was accepted as a member of IMO. In the fall of 1947 it was felt that the time was ripe for the organization within the Meteorological Service of a Flight Weather Section, to ensure an adequate weather service capable of serving the needs of aircraft of the occup ying powers and international aviation. Since Austrian aviation activity had been banned by Allied Council decision, it was attempted to establish this service by means of improving and expanding the existing Meteorological Service. The following steps were recommended to this end: a) Improve the communication net for collection and dissemination of meteorological information. b) Establish a central station for sending aviation weather warnings. c) Increase the frequency of weather broadcasts from Vienna from 3-hour intervals to hourly or half-hourly intervals. d) Introduce procedures prescribed by ICAO (International Civil Aviation Organization) and IMO (International Meteorological Organization). e) Train Austrian personnel for familiarization with ICAO and IMO regul ations. Although all four Elements agreed that the above steps were desirable, the Soviet representative felt the plans were premature. The project therefore was delayed. The US Element, however, developed plans on a unilateral basis to train a nucleus of 24 Austrian meteorologists (8 forecasters and 16 observers) in the most modern US Air Force techniques. Training was planned to begin in early 1948 either at the already-established US flight weather school at Tempelhof Airfield in Berlin, or at a similar specially-organized school in Vienna. The US training program was to consist of refresher courses in general meteorology, orientation in modern weather techniques, and instruction in international meteorological procedures. No costs were involved for the

60

Austrian Government, as the trainees selected would be the regularly em ployed personnel of the Weather Service. Transportation was to be provided by the United States. To inaugurate this plan it was attempted to secure at least quasi-official approval of the quadripartite members of the Air Directorate. However, when after lengthy discussions it became apparent that it was impossible to overcome the negative attitude of the Soviet Element, the US Element decided to act unilaterally. It had the support of the British and French Elements. The US Element, therefore, began revising its plans with the aim of sending a reduced number of students (to be recruited from the zones of the Western powers) to the Berlin school on an individual zone basis. At the end of 1947, these plans were being put into action.
Vienna Air Traffic Control Center

Central Airport for Vienna

In February of 1947, the US Element introduced into the Air Directorate a proposed plan for control of all air traffic entering and leaving the Vienna area at night and in the daytime under adverse weather conditions. This plan was based on a study of the Berlin Safety Center, and envisaged a Vienna control zone contained in a 25-mile radius circle from a control point in Vienna, and a Vienna control area covering the control zone plus the area of the already-established air corridors as far as the Austrian frontiers. A 1 f o ur elements agreed that the creation of such an Air Traffic Center would be of great benefit to the safety of aircraft in the Vienna area. However, the customary Soviet opposition to actual adoption of the plan developed on the grounds that, in this case, the time needed to set up such a center meant that its use by the Allied powers would be of short duration. The British and US Elements pointed out that the use of the control center would not be limited to the occupation period, and that the eventual withdrawal of occupation troops should leave Vienna with an adequate, functioning traffic center similar to those operating in all other principal European cities, thus providing safe and efficient movement of civil aircraft. The US even offered to make available the greatest part of the necessary equipment, using Air Force material already in use at Tulln Airfield, and other equipment declared surplus to Air Force needs within Austria. In the end, however, the plan was approved only by the British, French and US Elements, with the Soviets maintaining a position of non-participation.

The Austrian Federal Minister of Transport, in November of 1947, informed the Air Directorate that the newly-approved Civil Aviation Department wished to begin making plans for the establishment of a central airport at Vienna, for use after the end of the occupation. It was the Austrian Government's opinion that the most practical airport for this purpose would be Schwechat Airfield. Information was requested of the Air Directorate as to whether, and, if so, under what conditions, this field would be released to Austria at a later date. As one of the occupants of Schwechat Airfield, the British Element prepared an answer to the Federal Minister which served as a basis for discussion in the Air Directorate. In essence, the British paper, which was supported by the French and US Elements, informed the Austrian Government that Schwechat could be turned over to Austrian control for use as a civil airport at the end of the occupation. The Soviet Element apparently wished, however, to avoid giving a direct answer to the Austrian Government. The Soviet viewpoint was that any question affecting disposition of an airfield in Austria required settlement by the Allied Governments, and that this subject was, therefore, beyond the scope of the Allied Commission. Lengthy discussion in the Air Directorate failed to bring agreement among the elements.
International Airlines in Austria

Up to the end of 1947, airlines of only three of the occupying nations flew into Austria on a regular service basis. Pan American Airways maintained a daily flight between Vienna and New York, via Prague, Frankfurt, Brussels and London. British European Airways had a daily flight from London to Vienna via Frankfurt. Aeroflot, the Soviet line, maintained a twice weekly flight between Vienna and Moscow, via Bucharest, Odessa and Kiev. The CSA, Czechoslovak line, was given permission for overflight on its twiceweekly flight from Prague via Rome to Palestine (see Fig. 22). During 1947, several requests were received from foreign governments seeking to establish air routes in Austria. The Czech Government, for example, requested permission for the Czechoslovak Airline to establish a regular commercial air service between Prague and Vienna. Shortly thereafter, two other similar requests were received, one from the Swedish Government, and another from the Yugoslav Government, the latter requesting agreement in principle to Yugoslav aircraft overflying Austria on a commercial route

61

FOREIGN AIRLINES IN AUSTRIA

1937 VERSUS 1947
CZECHOSLOVAKS LUFTHANSA A.G. AVIATION COMPANY J ( CZECHOSL 0 VAKIA ) , AIRLINE ( CZECHOSLO VAKIA)

PAA
(UNITED STATES) DAILY, VIENNA-NEW YORK VIA PRAGUE-FRANKFURT BRUSSELS- LONDON

B E A
(GREAT BRITAIN) DAILY, VIENNA-LONDON VIA FRANKFURT

CS A
( CZECHOSLOVAKIA ) TWICE WEEKLY OVERFLIGHT PRAGUE-ROME- PALESTINE

KLM POLSKA LINJA (NETHERLANDS) LOTNICZA LOT (POLAND)

AEROFLOT
AIR FRANCE /FRANCE) INNSBRUCK < Z ^ (SOVIET) SALZBURG'UiiJ TWICE WEEKLY, VIENNA (BAD VOESLAU)-MOSCOW VIA BUCHAREST-ODESSA-KIEV

SWISSAIR (SWITZERLAND) MALERT MAGYAR LEGIFORGAIMI R.T. (HUNGARY)

1 9
ALA LITTORiA S.A. (ITALY)

1 9

L AN 0 I N G

FLYING

OVER

SOCIETE DE NAVIGATION AERIENNE YUGOSLAVE AEROPORT (JUGOSLAVIA)

SOURCE: U.S. ALLIED COMMISSION AUSTRIA

Figure 22

62

to France and Switzerland. None of these requests received quadripartite approval. The British, French and US Elements agreed that the establish ment of international airlines was a matter of concern to the whole of Austria. The French Element went even further, maintaining that a nation desirous of establishing a regular air service into Austria should conclude an agreement directly with the Austrian Government. The British and US groups pointed out that limitation of the power of the Austrian Government during the occupation would prevent the implementation of any such agreements. The French Element, therefore, withdrew this proposal and agreed with the British and the US Elements in proposing that requests for the establishment of international airlines into Austria should be directed to the Allied Commission, who would seek the views of the Austrian Government before granting or refusing authorization. The Soviet Element, however, firmly maintained their position that, since Austria, under existing agreements, had no air sovereignty, aircraft passing through a zone (whether on commercial or non-commercial flights) were the sole concern of the Commander-in-Chief of that zone. By the end of 1947, no agreement had yet been reached on this question. Several foreign airlines were, however, planning to establish air routes into Austria in 1948, provided quadripartite agreement could be obtained. In addition, to the airlines listed at the beginning of this section, the following aviation companies planned future routes into or over Austria: The Belgian airline SABENA twice weekly flights from Brussels to Vienna via Frankfurt. The Dutch airline KLM twice weekly flights from The Hague to Vienna via Frankfurt, Salzburg, and Linz. The Hungarian airline MAZOVLET twice weekly overflight of Austria on Budapest-to-Paris route.
Austrian Membership in ICAO

but can now participate directly in such conferences, This should help Austria to advance the development of modern aviation in accordance with international standards. As a member nation of ICAO, Austria will be able to fit herself into the network of modern aviation facilities and the cooperative efforts toward safety and adequate regulation of air traffic.
Air Transport Agreements

In late 1947, the Austrian Government negotiated two separate air trans port agreements one with the United States, and the other with the Nether lands. The Austro-US Air Transport Agreement provides the US with the gua rantee that US airlines will have landing and transit rights in Austria in con formance with ICAO standards, after termination of the occupation. The Austro-Netherlands Air Transport Agreement, which is reciprocal in nature, is primarily intended for post-occupation purposes of civil aviation. The prerogatives of the occupying powers during the period of occupation are fully recognized.
Air Service Agreement

The Austro-US Air Transport Agreement provided the basis for the future conclusion of an Air Service Agreement between those two Governments, whereby certain US non-expendable meteorological equipment and supplies would be declared surplus to US Air Force needs and transferred to the Austrian Government. The Air Service Agreement would also provide for training of Austrian communications personnel and other services designed to establish adequate aviation ground facilities in Austria after the occupation.

Outlook
When the occupation began in 1945, all Austrian aeronautical activity military, commercial, sport was at a complete standstill. Since that time, Austrian aviation, under the supervision of the quadripartite Air Directorate, has begun the long climb toward the goal of complete air rehabilitation. The path has not been smooth. In Air Directorate negotiations involving revival or establishment of civil aviation agencies and facilities, stiff and determined opposition has been encountered. In some cases, this opposition has been overcome; in others, progress on vital air issues has been blocked. 63

One of the primary objectives of the US Element in Austria has been to restablish Austria's position in international aviation, An important step in this direction has been the securing of Austrian membership in the International Civil Aviation Organization (ICAO). This took place in the autumn of 1947. Austria is now a member of that key international aviation group. Austria had previously been represented at ICAO conferences by the British and US members of the Air Directorate,

Nonetheless, considerable progress has been made, although much remains yet to be accomplished before Austria can fulfill her natural destiny as a modern air-conscious nation. Considered on the whole, however, the prospects for the future are not discouraging. What Remains to be Done Some of the important projects still to be completed are: 1. Full implementation of the approved projects. (Examples: Lifting of all Civil Aviation Department restrictions to enable that department to become fully operational; completion of a Flight Weather Section within the Meteorological Service.) 2. Installation of an Air Traffic Control Center in Vienna. 3. Establishment of a central metropolitan airport in Vienna for use after the occupation. 4. Approval for foreign airlines to overfly and land in Austria on regularlyscheduled commercial flights.

Until the end of 1947, the most serious obstacle to the rehabilitation of Austrian aviation was the persistent resistance of the Soviet Element to nearly every civil aviation proposal benefiting Austria. Apparently the Soviet objective is to prevent, delay, or otherwise obstruct the natural development of civil aviation by the Austrians, or with any aid offered by the United States, French, or British Elements, in order that Austria will eventually become dependent on the Soviets for assistance. This policy, the Soviets anti cipate, will ultimately force the Austrians to "do business" with the Soviets on the basis of an Austro-Soviet Agreement wherein virtual monopoly rights would be granted the Soviets to the exclusion of the Western powers. This Soviet policy of obstruction and delay has been the chief stumblingblock in the path of Austria's air recovery. However, if Austria can continue to receive the benefit of the most modern world-wide aviation resources and the latest technical achievements, and if it can remain free of interference from outside interests, the prospects for the revival of a thriving and prosperous Austrian civil aviation system are promising.

64

RESTITUTIONS AND REPARATIONS

External Restitutions
The Problem of External Restitution
Between the invasion of Poland in September 1939 and the capitulation in 1945, Germany and her satellites stripped the occupied countries of vast quantities of raw materials, machinery, machine tools, railway equipment, vehicles, gold, art treasures, and every other type of movable property. A sub stantial part of this wealth accumulated in Austria, either fortuitously through the disintegration of the enemy armed forces, or through planned storage with the view to relative safety from destruction by bombing. The Occupying Powers were charged with the tremendous task of restoring to its rightful owners this wealth which had been extorted under duress. have taken the form of open looting or plunder, or of transactions apparently legal in form, even when they purport to be voluntarily effected. The govern ments making this declaration and the French National Committee record their solidarity in this matter".

Implementation of External Restitution

After the fall of the German Reich a general plan for restitution in Austria was submitted by the Quadripartite Reparations, Delivery and Restitution Directorate to the Allied Council on 26 January 1946. At this level the problem met with difficulties engendered by differences in ideology, concept and interpretation of the Potsdam Declaration on the part of the Soviet Element. Quadripartite agreement was finally reached on the following points: a. The cost of transportation within the frontiers of Austria, as well as the cost of necessary repairs for transportation, including labor, material and or ganization necessary for the restitution of property removed from countries occupied by the German Army and which have been recovered in Austria, must be borne by Austria. Expenses incurred outside of Austria, with the exception of Germany, must be borne by the recipient countries. b. A "Decree on the Declaration and Registration of Property Belonging to the United Nations, Seized by the Germans and Taken from the Territory of Countries Occupied by Them" was promulgated throughout Austria on 25 May 1946 by order of the Allied Council. The purpose of this order was to compel all institutions and private individuals in Austria to declare within 30 days all looted property and assets in their possession in excess of S 500 valuation, or administered, safeguarded or controlled by them. c. To organize a Quadripartite Restitution Commission in the International District of Vienna to make external restitutions by quadripartite agreement. With the exception of these three quadripartite decisions, restitutions proceeded unilaterally within the four occupation zones of Austria.

Basic Policy for Restitution

On 5 January 1943, eighteen Allied Nations, including the Soviet Union, announced an "Inter-Allied Declaration Against Acts of Dispossession Com mitted in Territories under Enemy Occupation or Control/' The following quotation from this declaration commonly known as the "London Declaration", established the fundamental basis for restitution: "The Union of South Africa, the United States of America, Australia, Belgium, Canada, China, the Czechoslovak Republic, the United Kingdom of Great Britain and Northern Ireland, the Union of Soviet Socialist Republics, Greece, India, Luxemburg, the Netherlands, New Zealand, Norway, Poland, Yugoslavia and the French National Committee: Hereby issue a formal warning to all concerned, and in particular to persons in neutral countries, that they intend to do their utmost to defeat the methods of dispossession practiced by the governments with which they are at war against the coun tries and peoples who have been so wantonly assaulted and despoiled. Ac cordingly, the governments making this declaration and the French National Committee reserve all their rights to declare invalid any transfer of, or dealings with, property, rights and interests of any description whatsoever which are or have been situated in the territories which have come under the occupation or control, direct or indirect, of the governments with which they are at war or which belong or have belonged to persons, including juridical persons, resi dent in such territories. This warning applies whether such transfers or dealings

Austria's Position with Respect to Restitution

The Moscow Declaration of November 1943, recognizing Austria as a liberated nation, rather than a German satellite, opened the way to permit

65

restitutions to Austria. In March, 1946, the US Element announced that Austria would be included in its restitution program with respect to Austrian property looted between 12 March 1938 and 15 May 1945.

External Restitution in the US Zone

Restitution Policy In the beginning of the occupation the US Element hoped for a uniform policy of restitution in all of the four zones of Austria. In November 1945, the US High Commissioner attempted to obtain quadripartite agreement in the Allied Control Commission on restitution principles in all the zones of occu pation. It was impossible to reach such an agreement. Therefore in the US Zone of Austria the US Element proceeded to carry out its own restitution policy. All properties identified as having been looted or acquired, through com mercial transactions or otherwise, by the Germans, from Allied Nations during the German occupation were subject to restitution. Only gold, securities and foreign exchange were excepted. Restitutions were carried out regardless of whether such items were needed to meet military or civilian requirements within the zone of occupation, provided that in the case of transportation equipment restitution might be phased so as to withold sufficient equipment to meet the requirements for military deployment and occupation needs. With respect to Allied Nations, the following categories of property were subject to restitution: a. Cultural, religious and artistic works, museum collections, libraries, archives, etc. Restitution in these cases required only that the goods be identi fied as having been looted or otherwise acquired in any manner during the German occupation of Allied Nations. b. Heavy, power-driven industrial and agricultural equipment and ma chinery, rolling stock, locomotives, barges and other transport equipment, communications and power equipment. c. Other goods, valuables (excluding gold, securities and foreign currencies) materials, equipment, livestock and other properties found in storage, or otherwise, in bulk form. d. Property produced during the period of German occupation of Allied Nations, provided the claimant governments submitted valid proof that Ger many acquired such goods by an act of force.

In March 1946 the US High Commissioner made a new attempt to seek quadripartite agreement in the Allied Council on the conditions under which limited restitutions were to be effected to ex-enemy and satellite nations. There again no agreement could be reached and the US Element proceeded with restitutions to ex-enemy and satellite nations in the US Zone according to its own policy. Restitution was limited to property which was forcibly removed from the ex-enemy countries after their collapse or liberation during the following periods: ITALY, from 3 September 1943 to 15 May 1945 HUNGARY, from 20 January 1945 to 15 May 1945 RUMANIA, from 12 September 1944 to 15 May 1945 AUSTRIA, from 12 March 1938 to 15 May 1945 FINLAND, from 19 September 1944 to 15 May 1945 In June 1946 the above dates were amended as follows: ITALY, from 25 July 1943 to 15 May 1945 HUNGARY, from 15 October 1944 to 15 May 1945 AUSTRIA, from 12 March 1938 to 15 May 1945 (no change) RUMANIA, from 23 August 1944 to 15 May 1945 FINLAND, from 2 September 1944 to 15 May 1945 The claimant nation was required to submit proof that the property, except for works of art and cultural objects, had been acquired by Germany as the result of an act of force and was removed into Austria without compensation to the original owner. In the case of other property found in storage or bulk form, restitution was not mandatory if the US High Commissioner considered that such action would jeopardize minimum requirements of the Austrian economy or require additional US assistance or expenditure. As Austrian industry began to recuperate from the effects of the wrar, a policy change with respect to external restitution became imperative to avert irreparable damage to the Austrian economy through removal to claimant countries of key machinery vital to Austria's productivity. Con sequently, in September 1947, the US Element resolved, in specific cases, to delay restitution for a stipulated period of time (generally three months) of certain machinery and equipment vital to the country's industrial recovery. This afforded Austria and the claimant nations an opportunity to seek a settlement by means of trade negotiations.

66

Procedure External restitution is made only to governments and not directly to private claimants. Restitution to the claimant nations is accomplished in the following manner: a. Claimant government presents a claim through diplomatic channels. b. A copy of the claim is sent to the appropriate agency in the US Zone of Austria, for investigation, and, circumstances warranting, the claimed property is placed under formal US property control or custodianship. c. Claimant nation is advised of the results of the investigation and is invited to submit proofs of ownership. d. If satisfactory proof is submitted, the claimant nation is invited to send a mission to the US Zone of Austria, to be accompanied by a US field representative. e. If the property is identified, restitution is made on the spot and receipts are signed by the US field representative and the representative of the claim ant government. /. Movement of the property is begun and assistance furnished by the Austrian Labor Office. Authority for Blocking and Control of Property The act of seizure, control and appointment of a custodian for property cove red by a claim, is based on military government decree number 3, issued in May 1945. It empowers a duly authorized representative of military govern ment to safeguard such properties against sale, transfer, theft, alteration, etc., by appointing a custodian who becomes personally responsible and liable for the property in question. Scope of Claims Received by the US Element Since the beginning of restitution activities in the US Zone of Austria, and up to 31 December 1947, 2,765 claims have been received for looted property. Individual claims vary in magnitude from claims for one radio receiver to complete industrial plants involving hundreds of machine tools. Claims were received from 19 governments and the United Nations Organiz ation but the majority originated from Hungary, Czechoslovakia, France, Poland, Yugoslavia, Italy and the Netherlands, from which 89% of the claims have been received. To date 518 claims have been allowed, 878 claims have been disallowed, and 1,369 are pending, (see Fig. 23 and St. A. Table 54.)

Restitutions Made The bulk of property restituted up to 31 December 1947 from the US Zone of Austria represented industrial machinery and equipment. 18,660 metric tons of such material valued at 19.8 million dollars were shipped to claimant governments. Smaller in bulk, but of far greater monetary value were the restitutions of fine arts and cultural objects. The total value of completed restitutions to Austria or from the US Zone of Austria was $ 188,748,450. Of this sum, $ 149,625,850 was represented by fine arts and cultural objects. Figures were based on values, estimated by the governments to which the restitutions have been made, (see Fig. 24 and St. A. Tables 55 & 56.) Highlights of Restitutions, US Zone (2) Austria The Alt Aussee salt mine in the US Zone of Austria housed the greatest col lection of Nazi loot in Austria. Here was found the major part of the great collection destined for the Linzer Kunstmuseum, a project close to the heart of Hitler. The material had been collected from all Nazi occupied Europe, under the supervision of Dr. Posse, fine arts professor of the University of Dresden. The contents of this mine consisted of more than 7,000 paintings and drawings, and approximately 3,000 cases of art treasures. The caves in which this loot was stored were electrically lighted and were well equipped with wooden floors and racks on which the objects reposed. The air in the caves was dry and of uniform temperature so that there was no deterioration. A considerable portion of the Alt Aussee loot was of Austrian origin. Some 700 paintings belonging to the Rothschild family and 500 paintings be longing to other Jewish families were recovered. Other Austrian deposits were unearthed which originated from the Austrian Army Museum, the Mili tary Academy Wiener Neustadt, the Museum at Eisenstadt, Burgenland, the Dorotheum of Vienna and divers Austrian churches. There were also 3 to 4 freightloads of paintings from the Schoenbrunn and Hetzendorf Castles. In the Lauffen Salt Mine, the following Austrian Museum collections were found: Kunsthistorische Museum 787 paintings Museum fuer Voelkerkunde 88 cases of art objects Akademie der bildenden Kuenste 42 paintings Nationalbibliothek 150 cases of rare old books, manuscripts, etc. Denkmalamt 6 cases of art objects, 21 pictures, 8 pieces of sculpture 67

STATUS
HUNGARY

OF

RESTITUTION
US. ZONE, AUSTRIA

CLAIMS
AND U.S.

31 DECEMBER
VIENNA AREA

1947

CZECHOSLOVAKIA

RESTITUTIONS CLAIMS CLAIMS

COMPLETED

DISALLOWED PENDING

U.S.S.R. a

REMAINING SATELLITES

OTHER

0
NUMBER OF

50
CLAIMS

100

150

200

250

300

350
PREPARED

400
BY U.S. ALLIED

450
COMMISSION

500
AUSTRIA.

68

Figure 23

ESTIMATED
AUSTRIA

VALUE

OF
U.S.

COMPLETED
ZONE AUSTRIA BASED AND ON

RESTITUTIONS 31 DECEMBER 1947

U.S. VIENNA AREA U.S. DOLLAR PRICES

VALUES

ZECHOSLOVAKIA

MISCELLANEOUS ART TRANSPORT INDUSTRIAL EQUIPMENT EQUIPMENT

I.S.S.R. a

REMAINING SATELLITES

ITHER

\ZA
4 5 6
8 PREPARED 9 BY iO US. ALLIED II COMMISSION 1 2 AUSTRIA

IN
-5*

MILLIONS

OF

DOLLARS
Figure 24

69

Oesterreichische Geologische Bundesansialt 22 cases of archives

Graphische Sammlung Albertina 50 cases of watercolors, drawings and prints Hauptvermessungsabteilung XIV 278 cases of maps, etc. Miscellaneous owners 342 paintings In the lower level of the mine were stored various Austrian archives. In the Hallein salt mine was found the Vienna Archeological Library as well as a coin collection from the Landesgalerie, Salzburg. Other outstanding art treasures restored from the US Zone of Austria were the crown jewels of the Holy Roman Empire, a Vermeer painting with an estim ated value of $ 1,000,000 and priceless stained glass windows from Vienna churches. (2) Poland Astronomical instruments estimated to have a value of $ 1,000,000 were restituted to Poland. These instruments were looted from the Astronomical Observatory of the University of Warsaw. Machines and industrial equipment vital to the economic recovery of Poland estimated at several million dollars were also restituted. (3) Hungary A priceless religious relic, The Holy Hand of Saint Stephan, was restored to Hungary. $ 32,000,000 in gold belonging to the Hungarian National Bank was dis covered at Spital am Pyhrn, Upper Austria, during the closing days of the war by the US Third Army. The gold was shipped by air to Frankfurt am Main and later restored to Hungary. (4) Italy The following four libraries, consisting of 2,621 cases of books, manuscripts and documents valued at $ 1,900,000 were returned to Italy in January, 1946: Library of the German Archeological Institute
Library of the German Historical Institute
Biblioteca Hertziana
Library of the German Art-Historical Institute of Florence.
The City of Linz had in operation 60 autobuses of Italian origin which were subject to a restitution claim. The loss of these buses would have cripp led the public transportation facilities of the city. Through conferences

arranged by the US authorities, the Italian Mission jaijidthe officials of Linz effected a trade agreement whereby the autobuses were retained and Italy received an equivalent value in raw material needed by Italian industry.
(5) The Netherlands

Objects of art including many paintings by famous Dutch masters valued at $ 1,107,500 were restituted to the Netherlands. The Netherlands Mission claimed a complete nitrate manufacturing plant which had been incorporated in the Stickstoffwerke at Linz. Investigation disclosed that while the removal of most of the equipment would not be detrim ental to Austria's fertilizer production, certain parts of the plant were of vital importance. Through a series of conferences arranged by the US Element, an agreement was reached whereby the Netherland Government agreed to permit Austria to retain the necessary equipment in exchange for two air-reduction plants which were not essential to the Austrian economy.

International District of Vienna

Since the first district of Vienna, commonly known as the International District, was placed under the joint control of the four occupying powers, it became necessary to devise a quadripartite procedure for the restitution of looted property located there. In November 1946 the Executive Committee agreed to pass a resolution which established a Joint Property Control and Restitution Commission for the first district of Vienna. This commission operated as a section of the Vienna Interallied 'Command and consisted of representatives of each of the four elements. Unanimous decision was neces sary to effect any restitution. In the event the elements disagreed as to the action to be taken in any particular case, the matter could be referred by suc cessive steps up to the Allied Council. If unanimous agreement could not be obtained in the Allied Council, no action could be taken. Up to 31 December 1947, the commission had received 174 restitution claims, of which 143 were allowed <

Restitution in the British Zone of Austria

Restitution policy British restitution policy with respect to the United Nations countries, like the US policy, is based upon the "London Declaration" of 5 January 1943. In general, property is regarded as appropriate for restitution if it falls into one of the following categories:

(1) Identifiable goods which were in existence in the claimant country at the beginning of the German occupation, and which were removed from the claimant country during the occupation as the result of an act of dis possession of any kind, with or without the use of force. (2) Identifiable goods which came into existence after the beginning of the German occupation of the claimant country, and which were removed during the occupation as the result of an act of dispossession, involving the use of force directly exercised against the property concerned. As wTith US policy, currencies, monetary gold and silver, and securities do not come within the terms of the British restitution program. British restitution policy with regard to ex-enemy countries differs slightly from US policy. According to the British view restitution of ex-enemy property from Austria is a matter for direct settlement between the governments con cerned and the Austrian Federal Government. Highlights of British Restitution Activities As in the case of the US Zone of Austria property restituted from the British Zone of Austria was extremely varied in nature. Although the bulk of resti tutions were of machinery and equipment, the following cases illustrate the scope of the British restitution program: a. The Tanzenberg library was established during the war near Klagenfurt, Carinthia by the Zentralbibliothek der Hohen Schule (NSDAP) and contained thousands of rare books looted by the Germans in occupied countries. Cases of books have been restituted to claimant countries in the following numbers: to Belgium, 155; to Czechoslovakia, 1300; to France, 2516; to Greece, 1; to Holland, 1300; to Poland, 4; to the USSR, 569; to Yugoslavia, 16. b. Eight yachts were restituted to Holland from the Woerthersee Lake. c. A Danube tugboat was restituted to Yugoslavia. d. Twenty-seven crates of agriculture and scientific equipment looted from the Soviet Institute for Scientific Research in Agriculture have been returned to the Soviet Union. e. Forty-two railway locomotives have been restituted to Yugoslavia.

country during the German occupation, and those removed to Germany or Austria through purchase, on the thesis that the German occupation so debased the currencies of the occupied countries that the purchase price did not represent a just compensation. The French restitution program makes no distinction between United Nations and ex-enemy nations. With respect to the restitution of property essential to Austria's economic recovery, the French policy, by comparison, is less lenient than US policy, par ticularly with respect to deferment of removals. The French point of view is that ample advance notice of removal is given and that in some cases the Austrians have taken no remedial measures to avoid hardship.

Restitution in the Soviet Zone of Austria

Initially, the Soviet Element declared itself in general agreement with the re stitution policies of the three other occupation powers. From the beginning of restitution operations, however, it was apparent that the Soviet satellite countries were being favored. The French, however, apparently for political reasons and for reasons of reciprocal restitution from the French Zone of Austria, were given particular consideration. * Co-incident with the electoral defeat of the Communist party in France in 1948, and the promulgation of the European Recovery Program,-the Soviet Element revised its restitution policy, demanding evidence of personal or direct duress as a requisite for restitution. Since the Soviet restitution program was virtually completed prior to this time, this change in policy had little effect except in the quadripartitely controlled International District of Vienna where unanimous agreement is necessary to effect restitutions. The Soviet Element has given due consideration to the Austrian point of view in the case of restitution of properties whose removal would be detrinir ental to the Austrian economy. In such cases the Soviet authorities have encouraged trade agreements and bi-lateral negotiation. The Soviet Element has also been co-operative in the restitution of looted property to Austrian na tionals. The Soviet Element does not consider that the restitution program in its occupation zone, has been detrimental to the Austrian economy, since it has held that most of the restituted machinery and equipment was not in good con dition and restitution was effected before it had been absorbed into the post war Austrian economv.

Restitution in the French Zone of Austria

Restitution policy The French restitution program is also based on the London Declaration. In addition to the classes of property which are deemed as restitutable by the US and British Elements, the French also restitute goods manufactured in a

71

General Effect of Restitution on the Austrian Economy

It is the Austrian point of view that the External Restitution Program was harmful to the country's economy. The Austrians further consider that the greater part of the restitutions did injustice to the Austrian holders of such property who had acquired the property through direct purchase in countries occupied by the German armies, or paid some value for the property by purchase from German military sources. It must be stated in rebuttal, however, that available evidence indicates that the majority of restitutions were made from property not yet integrated into the Austrian post-war economy and no markedly adverse effect upon the Austrian economy has been observed as a result of the external restitution program in Austria. With respect to properties purchased by the Austrians in German occupied countries, either directly or through German war of fice intermediaries, it must be remembered that the claimant, nations received nothing in most cases, or currency so debased by German occupation charges that it by no means reflected the true value of the properties pur chased.

The German Reich, through the Goering Werke and the Wehrmacht poured vast amounts of money into the conversion and expansion of indus trial concerns for war purposes. The German firms then commenced to acquire other Austrian firms as subsidiaries. By 1945 the network of German control had spread into all sections of the Austrian economy. The ramifications of German ownership were so intricate and complex that its extent cannot be expressed in comparative figures or statistics. All attempts to establish its extent were further hampered by the division of Austria into zones. It is, however, safe to assume that German ownership and control of industry and business enterprises had by 1945 given Germany an effective stranglehold on the Austrian economy.

Allied Policy Prior to the Occupation of Austria

The United Nations Declaration made at London in January 1943 (signed by all four powers who later took over the occupation of Austria), made it clear that the Allied Nations reserved the right to invalidate property transfers in those countries which had been occupied by the German armies. This declaration was followed by the Moscow Declaration of 1 November 1943, in which the governments of the US, UK, and USSR declared that Austria, as the first victim of Nazi aggression, would be restored as an independent nation. But Austria was also reminded that she would be held responsible for participation in the war on the side of Germany and that in the final settlement, account would be taken of Austria's contribution to her own liberation. Thus a certain ambiguity was injected into the Allied postwar program for Austria. The declaration promised the new Austria economic and political security and appeared to imply that Austrian resources or Austro-German resources could be used for reparations only to an extent compatible with the creation of a healthy economy. After Austria was freed from the German army, none of the Allies attempted publicly to evaluate the activities of the Austrian resistance; nor did any of them suggest what contribution Austria had made to her own liberation. The US Element has stressed its promise in the Moscow Declaration to recreate a free and independent Austria, by US attempts in the Allied Council for Austria, to limit removals of German assets in Austria as reparations. On the other hand, the Soviet Element, while stating that it recognized Austria as a liberated country, repeated that it must take into account Austria's contribution to the German war effort..

The Question of German Assets

Introduction
The economic penetration of Austria by the German Reich had been planned long before the actual annexation on 12 March 1938. On 25 March 1938, Hermann Goering invited a selected group of Austrian bankers, industrialists, and businessmen to take a trip with him on the Danube. On this trip the Austrians were informed of the overall plan for incorporating the economy of Austria into that of the Greater Reich. Goering's own vast industrial combine, the Hermann Goering Werke of Berlin, led the way in the implementation of this plan by acquiring control of Austria's largest steamship company and Austria's major heavy industries. The German Ministry of Finance took control of the Austrian National Bank and the Creditanstalt-Bankverein, Austria's largest private bank. German Nazi organizations and German business firms penetrated and gained control of the insurance, oil, electrical industries, and other fields of business. Individual Germans, by means of racial legislation, acquired ownership of hundreds of smaller business enterprises at practically no cost or for nominal sums.

72

The Potsdam Conference

The Potsdam Protocol of 2 August 1945 announced that the Conference of the Heads of the Governments of the US, UK, and USSR had examined the Soviet proposal to extend the authority of the Provisional Government (of Dr. Renner) to all Austria. It stated that the three governments would re-examine this proposal after the entry of the British and US Forces into the City of Vienna. The only other reference to Austria contained in the published Declaration concerns the use of German assets located in Austria as reparations. Under the heading "III. REPARATIONS FROM GERMANY" the Potsdam Conference agreed: " 1 . Reparations claims of the USSR shall be met by removals from the Zone of Germany occupied by the USSR and from appropriate German external assets. 3. The reparation claims of the United States, the United Kingdom and other countries entitled to reparations shall be met from the Western zones and from appropriate German external assets." With respect to German external assets, the Declaration says: "8. The Soviet Government renounces all claims in respect of reparations . . . to German foreign assets in all countries except those specified in Paragraph 9 below. 9. The Governments of the UK and the USA renounce all claims in respect of reparations to . . . German foreign assets in Bulgaria, Finnland, Hungary and Eastern Austria." These articles thus determined the appropriateness for reparations of German external assets in Austria on a geographical basis, even as German internal assets were to be used as reparations according to their physical location in Germany.

3. As far as compatible with the above objectives, to facilitate the employment of such property for the benefit of the Austrian economy. The US Element attempted to obtain an agreement in the Allied Council that until appropriate Allied authorities formulated a reparations and restitution program for application in Austria, no removals should be per mitted on reparations account. Unfortunately, no such agreement could be reached.

Soviet-Sponsored Austrian Directives

No information is available as to the instructions the Soviet Commander may have received from his government in the initial months of occupation. These instructions may be inferred, however, from Austrian laws which the Soviet Commander approved before the Allied Commission for Austria was established. The Soviets, having recognized the Provisional Renner Government in April 1945, permitted the decrees of this government to be enforced in Vienna and Eastern Austria. Law No. 10 of 10 May 1945 required registration of "aryanized" (property obtained from Jewish owners, after the Anschluss) and other properties seized during the German occupation of Austria. This law reads in part as follows: " 1 . Subject of this law is the registration of property and property rights which have been seized in connection with the Nazi annexation from their owners since 13 March 1938, either arbitrarily or based on laws or other ordinances for so-called racial, national, or other reasons." "3. The owners of the properties and property rights enumerated in paragraph 1 are to register them within one month after enactment of this law . . . Until final decision concerning properties and property rights, the owners... are obliged to administer these properties and properties rights with due commercial diligence." This law did not require the registration of all German-owned property and was primarily directed at identifying property which could not be considered as validly German-owned. It is indicative of initial Soviet willingness to correct some of the wrongs done by the German Reich. Law No. 9, passed the same day, permitted the Provisional Government to appoint public administrators for business undertakings in Austria, if an important public interest was involved. Many German-owned businesses were taken under control pursuant to this law. This law was later confirmed by the Allied Council.

US Attempts to Unify Policy

The US Element in Austria has, however, constantly advocated that once the geographic location and validity of German ownership was estab lished, the real determination of the appropriateness of an asset for re parations should be the effect of its removal on the Austrian economy. The mission of US Military Government with respect to German property in Austria was as follows: 1. To protect such property rights and interests. 2. To end German control of property in Austria.

73

Simultaneously with the recognition of these laws by the Soviet Commander as applicable to Vienna and Eastern Austria, a branch of the Red Army, known as the "Booty Department", was active in the same area removing any German property it chose as spoils of war and not specifically as re parations. No information is available as to the policies of this unit, nor to what extent it interfered with the administration of properties subject to laws No. 9 and 10. Apparently it operated independently of the Property Control Officers of the Red Army and was not infrequently in conflict with them. It is clear, however, that much German or apparently German property was removed from the Austrian economy by this "Booty Depart ment."

d) In the absence of action by the Allied Council, the four several High Commissioners may act independently in their respective zones in any matter covered by , . . Article 5, . . . ARTICLE 5. The following are the matters in regard to which the Allied Commission may act directly . . . IV. The disposal of German property in accordance with the existing agreements between the Allies. ARTICLE 6. a) All legislative measures, . . . shall, before they take effect or are published in the State Gazette be submitted by the Austrian Government to the Allied Council. In the case of constitutional laws, the written approval of the Allied Council is required, before any such law may be published and put into effect. In the case of all other legislative measures . . . it may be assumed that the Allied Council has given its approval if within thirty-one days of the time of receipt by the Allied Commission it has not informed the Austrian Government that it objects to a legislative measure . . . b) The Allied Council: may at any time inform the Austrian Government or the appropriate Austrian authority of its disapproval of any of the Legislative measures, . . . and may direct that the action in question shall be cancelled or amended. ARTICLE 12. The decisions of the Allied Council . . . shall be unanimous." Interpretation of the New Control Agreement by the Occupying Powers with Respect to German Assets in Austria Within two months of the promulgation of the New Control Agreement, a situation arose which clearly demonstrated that the provisions of the agreement with respect to German assets in Austria were not being interpreted in the same manner by all of the occupying powers. On 26 July 1946, the Austrian parliament passed a law nationalizing some 70 enterprises, mainly in the Soviet Zone, most of which had a German interest. The Soviet High Commissioner for Austria called an extraordinary meeting of the Allied Council on 2 August 1946 at which he introduced a resolution that the Allied Council, pursuant to Article 6 (b) of the New Control

The New Control Agreement of 28 June 1946

On 28 June 1946, the Allied Council adopted a New Control Agreement for Austria. In spite of their differences, the four occupying powers had reached accord on an instrument which greatly extended the powers of the Austrian Government. The New Control Agreement made the Austrian Government sovereign in many respects, particularly in the field of internal affairs. Austrian legislation, except for constitutional measures, could only be disapproved by unanimous veto of the Allied Council. One of the remaining restraints was over the Austrian Government's power to dispose of German assets. In this matter written Allied Commission consent was mandat ory. The pertinent sections of the New Control Agreement follow: "ARTICLE 1. The authority of the Austrian Government shall extend fully throughout Austria, subject only to the following reservations: b) In regard to the matters specified in Article 5 below neither the Austrian Government nor any subordinate Austrian authority shall take action without the prior written consent of the Allied Commission. ARTICLE 2. c) The Allied Commission shall act only through the Austrian Government or other appropriate Austrian authorities except: . . . III. where, in the case of any of the subjects detailed in Article 5 below, the Allied Commission acts directly.

74

Agreement, order that the nationalization law be revoked. Discussion was postponed until the following week when the US Element announced that it would not support the Soviet resolution. Since compensation for nationaliz ation was contemplated, the US Element considered that the interests of all concerned would be protected. The British Element considered that the law did not dispose of German assets but was only a transfer of ownership within Austria which did not in any way affect the rights of the four powers under the Potsdam Agreement. The French Element did not object to the Nationalization Law itself, but did object to inclusion of enterprises which came within the scope of Article V (4) of the New Control Agreement. The Soviet Element stated that since the Potsdam Agreement specified that reparations from Germany be paid in kind, the Nationalization Law would violate the agreement. The Soviets also considered the law to be a violation of the New Control Agreement, and proposed a resolution that it be regarded as a constitutional law and, therefore, required written approval of the Allied Council prior to publication and promulgation. The French Element considered that prior written agreement was necessary only with respect to that part of the law concerning property provided for by Article V (4) of the New Control Agreement. The British and US Elements did not Consider the law to be a constitutional measure. The Soviet representative stated that since the Allied Council was unable to adopt an agreed resolution abrogating the Nationalization Law, he reserved the right to take such action in the Soviet Zone of Austria as he deemed necessary to protect the interests of the Soviet Union.

ion of most German properties in its zone under a trusteeship agreement, which requires periodic accountings from the Austrian Ministry concerned. The French have made a similar arrangement for the management of German properties in their zone by individual leases of the properties rather than by executing a formal trusteeship agreement. The rent paid for the lease is blocked as a German external asset. The UK on the other hand, made no arrangements whatever, but has permitted all Austrian laws affecting German properties in Austria to operate freely. The US, UK, and France simultaneously issued military, decrees prohibiting disposal of German properties by sale or transfer or other means, while the military decree of the USSR requires the properties to be transferred to an agency of the USSR. USSR Action On 27 June 1946, the day before adoption of the Control Agreement, the Soviet Commander-in-Chief promulgated Soviet Military Order No. 17. This order notified all Austrian authorities and the population of the Soviet Zone of Occupation that German assets located in Eastern Austria, which belonged to the German Reich or to German firms, corporations, or natural persons, had passed into possession of the Soviet Union as reparations payments, and that the management of such properties would be turned over to the "Administration of Soviet Properties in Eastern Austria". (USIVA, later called USIA.) All authorities and private persons administering such properties were ordered to transfer them to USIA in legal form. All stock certificates and shares not turned over would be null and void. USIA was empowered to issue new shares in their stead. All mayors and other governmental officials in whose territory former German assets were located and which had not yet been transferred to USIA were ordered to take the necessary measures to safeguard the properties and report within ten days to the local Soviet Commander. The order guaranteed rights and interests, according to the laws of Austria, of all workers and employees in firms transferred to USIA and provided punishment of any person who withheld knowledge of or made false statements regarding German properties, or who hindered the execution of the order or damaged the property in any way. In a newspaper interview explaining order No. 17, the Soviet High Commissioner and Commander-jn-Chief stated the Soviet position on German property. The USSR regarded as German property in Eastern Austria all

Unilateral Action by the Four Powers

The positions taken by the four powers at this point reflect the fundamen tal differences concerning the issue of German external assets in Austria and foreshadow the independent future course of action of the individual powers. When unanimous agreement on common action could not be reached, the four powers acted unilaterally in their own zones in pursuing their separate policies with respect to German assets and, to a certain extent, used, or attempted to use, the agencies of the Austrian Government to carry out their individual intentions. By military decree, the USSR has attempted to take control, possession, and title to all property under German title in Eastern Austria. The Soviets also set up an administration to exploit such German property. Acting unilaterally, the US turned over to the Austrian Government the administrat

75

German rights and assets located there which existed as such on 15 March 1938, or which had been transferred to Germany or German citizens, real or juridical, after that date on the basis of sale or purchase. If duress or insufficient compensation could be proved by the previous Austrian, neutral, or Allied owner, the Soviet could either return the assets to the former owner on condition that sums received from the Germans be repaid to the Soviets; or the Soviet Union might rule to retain the right of ownership and pay the former owner the difference between the actual sum paid him and the real value of the property. All rights acquired by German firms after 1938 to exploit the natural resources of the country and all other enterprises originated and developed after this order on the basis of German investments are now Soviet property. Also, patents and trademarks of Germans and accounts and valuables of Germans deposited in Austrian banks and the property of German public organizations and the personal property of German citizens, as far as it could not be proven that this property had been taken from the former owners by force, were now Soviet property. The Soviet attitude toward German property in Austria involved its interpretation of the Potsdam Agreement as to what German property was "appropriate" for reparations. Many properties in Austria, such as the Zistersdorf oil fields and associated production properties, were owned prior to the Anschluss by corporations organized under the laws of and having their legal seat in Germany. These German corporations were in turn owned in whole or in part by United Nation or other non-German nationals. The US and UK position has been to recognize the ultimate beneficial ownership of these non-Germans and declare their assets in Austria as not "appropriate for reparations" under the Potsdam Agreement. The USSR position has been to refuse to recognize the ultimate beneficial ownership of those nonGermans. Such properties have been seized and held by the Soviets as German Assets in Austria "appropriate for reparations". This difference in the interpretation of the Potsdam Agreement has been a main source of contention at the various conferences of the foreign ministers and their deputies in attempting to arrive at an agreed Austrian State Treaty. State, communal, and other property which had been Austrian up to 15 March 1938 and later passed into the possession of the German state or of German citizens without any compension in the course of the fusion of the states, or by means of credit or aryanization, was to be returned to the owners who were in possession of it at the time of the Anschluss. An Austrian request for clarification of the Soviet order, addressed to the Allied Council in July 1946, drew the Soviet comment that the Austrian 76

Government should approach the Soviet command, as decisions concerning German properties in Eastern Austria were the sole concern of the Soviet authorities and the Austrian Government. The USSR High Commissioner, in refusing approval of the Nationalization Law, had stated he would take such action in his zone as he deemed necessary to protect Soviet interests in any German property involved. He repeated his assertion when he disapproved the first Austrian Restitution Law, saying that this qualification would apply in all cases where the Soviets disapproved an Austrian law. While it is assumed that no transfer of title to the Austrian Government has been permitted under the Nationalization Law, in all cases brought under the first and second Restitution Laws, the Austrian Ministry of Justice states that the USSR has permitted the return of assets nominally German to their former owners in individual instances. Dispossessions affected by the first law were those made by the Nazi Government under expropriation decrees aimed at non-aryans, and no compensation was paid for the properties taken. The second law concerns Nazi property forfeited to the Austrian Government and likewise involved no repayment by the "wronged owner". The third Restitution Law deals with cases in which the dispossession took place under color of legal action, such as a contract of sale, etc., with some consideration being allegedly paid. Each case arising under this law involving German title is reviewed by the USSR legal authorities before the Austrian court is permitted to order restitution and change of ownership records. The Austrian Ministry of Property Control and Economic Planning states that in cases in which the USSR refuses approval, no change of ownership record may be made. In those cases in which the USSR desires the wronged owner to pay whatever compensation he may have received from the German dispossessor to the Soviets, the Ministry advises that such payment is at the risk of the claimant, since under a state treaty he may be required to pay such compensation again to the Austrian Government. Where the USSR decides that it will retain such German property, paying as com pensation to the wronged owner the difference between what he actually received and the real worth of the property, the Austrian courts have refused to enter in the land or commercial records any transfer of title to the Soviet Union, basing such refusal on the absence of written Allied Commission approval. Therefore, even where the wronged owner is willing to accept compensation from the USSR, the record title is not changed from the German owner to the USSR, and the title books still show German ownership.

To sum up, therefore, while the perfection of title in the wronged owner under this third Restitution Law may only take place with USSR approval, the Austrian courts have succeeded in blocking any change of German title to the Soviet Union in the record books. The Soviets have adopted no general rule with respect to restitution cases, and it is impossible even to infer such a rule in view of our scant knowledge of Soviet operations. It may be assumed, however, that they have blocked the restitution of most valuable industrial properties and have continued to exploit them even though they have not been able to obtain a valid Austrian title to them. Profits from certain operations have been used to bolster other weak ones. Some goods are exported for hard currencies; others, sold in Austria on the "grey" market above legal prices. The overall profit is disposed of by USIA as reparations from German assets in Austria. It has been estimated that this may be between twenty and thirty million dollars per year. Other sources, judging from the recently expressed desire of USIA to sell certain factories, etc., suggest an overall loss. No accurate information on the balance sheets of USIA is available.
US Action

operate the properties, including financing and appointment and removal of administrators. Austria was to take no profit or loss from the operation of the German property and pay no dividends and to render such accounts of its trusteeship as might be required by the US High Commissioner. The trusteeship was to remain in effect until the question of ownership of the assets was resolved. Under this Trusteeship Agreement, most of the German assets in the US Zone of Austria were transferred to the control of the Austrian Government. The US Element reserved the right to approve the sale of such assets as might prove a loss to the enterprise by their retention, and required periodic accounting reports.
Austrian Management of German Property Under the Trusteeship Agreement

On 11 July 1946, the US High Commissioner wrote to the Austrian Chan cellor, informing him that the US was prepared to enter negotiations with other Allied Governments and with Austria, with a view to a possible renunciation of the US share of German assets in Austria as part of the general settlement of the question of German assets. In the meantime, the US agreed to turn over to the Austrian Government, as trustee, all German assets physical^ located in the US Zone of Austria. He assured the Austrian Government that these assets might be used for purposes of reconstruction, that they would not be removed from the US Zone, and that the question of ownership was to be resolved at a later date. He repeated that the US would recognize no physical transfer of property which did not conform to the United Nations Declaration of forced transfers of January 1943 and which did not leave Austria sovereign control of resources within her borders, as envisaged in the Moscow Declaration of 1943. On 16 July 1946, the US High Commissioner executed a Trust Agreement for the United States of America, turning over to the Austrian Government certain specified assets. Additional German assets were subsequently added to the original list. These properties had been under control of administrators appointed by US Military Government. Austria obtained full power to

Two actions beyond the ordinary management of these assets were taken in the course of their administration by the Ministry for Property Control and Economic Planning. Both actions were approved by the US Element. They illustrate the extent to which control over German assets has been exercised by the Austrians in conformance with the Trusteeship Agreement for the rehabilitation of the Austrian economy. Certain German assets, mainly building machinery of German firms had been engaged in construction projects in Austria during the war. The Austrian Government would not permit these German firms to operate since the firms had no trade licenses valid for Austria. Their original trade licenses had been granted by the German Government at a time when Austria was a part of Greater Germany. The firms did not then need any specific authority to operate in the Ostmark, as Austria was called when it was part of the Greater Reich. The Austrian local authorities would not, of course, grant new trade licenses to the administrators of these German firms since that would have permitted the firms to continue in business as competitors of the local Austrian contractors. Moreover, any profit the firms made would be considered as a German asset since the firms were unquestionably Germanowned. Therefore, the machinery could only be stored or rented to local Austrian contractors. The local contractors would not rent the machinery, however, since they would have to keep it in repair but eventually lose it when the leases expired. Moreover, any rent obtained for the machines would likewise have gone to augment the value of the firms which were German assets. Because of storage charges, the value of the machinery was deteriorating, even if the machines themselves were well cared for. Soon no German asset would be left, the liabilities against the machines

77

for storage charges having absorbed it. Accordingly, the machinery was sold outright to local contractors by the Austrian Government as trustee, with the approval of the US Element. In the other case, a surplus but valuable blast furnace and equip ment belonging to a large steel mill in Linz, which had been built during the war by the Germans, were sold to a Swedish firm for over a million dollars. In both cases the proceeds of the sales, both in schillings or dollars, remained an asset of the respective companies and were deposited in Austrian banks. These bank deposits were then to be regarded as the German assets in place of the actual physical property sold. If, pursuant to the Potsdam Agreement, German assets in Western Austria are made available as reparations, these bank deposits, if they are classified as "appropriate for reparations", can be easily transferred to the claimant nations. On the other hand, the funds can be used to purchase vitally needed capital equipment and such equipment, as in the case of the steel firm, would still remain the property of the enterprise. The confusion heretofore existing among Austrian industrialists and owners of small enterprises concerning military government regulations covering machine tools and other properties in the US Zone of Austria revealed itself in a lack of confidence among businessmen concerning the rental, sale, and use of these German assets. Their transfer under trusteeship to the Austrian Government dispelled this sense of uncertainty and mistrust and established renewed confidence in Austrian business circles, particularly among the small enterprises, in the matter of investments, reconstruction and expansion of plants and represented another step forward in the re establishment of a sound economy. Interzonal Transfer of Controlled German Property Before adopting an overall policy decision, on 23 August 1946, a plan was implemented in which the interzonal movement of German-owned machine tools and miscellaneous industrial equipment could be effected. The first transfer of machine tools was the result of a request from Austria's leading automotive enterprise, the Steyr-Daimler-Puch A. G., which owns and operates plants in both the British and US Zones. The British Element, in its endorsement, volunteered to allow the US Element to exercise in the Britsh Zone a degree of supervision over the transferred assets necessary to insure the carrying out of the US Element's responsibilities with respect

to German assets in Austria. The US Element, in reply to the British endorsement, assured the British that they would enjoy the same privilege with regard to supervision of any German external assets transferred from the British into the US Zone. The above agreement made possible the movement of German assets throughout Austria, except the Soviet Zone, regardless of zonal boundaries. The agreement merely represents a procedural policy affecting, however, a great bulk of properties in all categories, thereby materially aiding in the reconstruction and revitalization of the Austrian economy. Furthermore, through this policy a way had been opened to maintain the value of the asset by permitting its maximum use in the economy while still preserving and protecting the asset for possible re parations. (See also Vol. II, p. 48.) Nazi Party and Party Leaders' Property The authority of the Austrian Public Administrator's Law of 26 July 1946, together with the publication of the second and third Restitution Laws of 6 February 1947, and the Control Agreement for Austria of 28 June 1946, made possible the appointment of custodians and managers by the Austrian Government, and enabled the US Element to release to the Austrian Government all Nazi Party and Party organizations', as well as Party leaders' property taken under control in the course of property control operations. The following classes of property were released: a) In cases in which the owner was an Austrian Nazi Party leader or Austrian Nazi Party member. b) In cases in which the Austrian owner was held under detention or other type of custody by military government or by its order. c) Property subject to sale through force or duress under the National Socialist regime. d) Property subject to a claim of ownership by United Nations nationals whose property was aryanized or who were otherwise dispossessed of their property rights in Austria during the Nazi regime, as differentiated from claims by United Nations nationals for restitution of property looted from their countries and carried to Austria. By virtue of this action, as of 31 December 1947, 920 properties falling into the above categories, were released to the Austrian Government,

78

French Action

The French have not permitted the Nationalization Law to be enforced in their zone insofar as this law affects German property. All property in their zone is subject to the effects of the Restitution Laws and the Public Administrator's Law even though the sections in the laws dealing with German property were disapproved by the French Element in the Allied Commission. When a case is brought up under the third Restitution Law and the defendant is either the German Government or a German National, the French Element reviews the facts of the case before it permits execution of an Austrian decision in favor of the plaintiff. If the risk seems slight that the property will eventually be considered a German asset appropriate for reparations, the French approve the decision of the Austrian court and permit execution of its decree. The French position was set out by the French Deputy Commissioner in a letter to the Austrian Chancellor. This letter stated that the question of German assets in Austria would be decided in a light favorable to the rehabilitation of Austria and pointed out the intention of the French Element to associate the Austrian authorities in the administration of these properties and of using the assets for the re construction of Austria. In the French Zone, according to available information, the asset itself is leased by the administrator, appointed by the Austrian Ministry for Property Control and Economic Planning pursuant to the Public Administra tor's Law, to a suitable entrepreneur, who may exploit the asset for his own profit. The rent to be paid for the lease of the asset is subject to approval by the French authorities who assure themselves that the terms of the lease do not permit the entrepreneur to achieve too high a profit. The income received from the lease is then regarded as German property and blocked to await disposal as a German asset. No periodic reports are required of the Austrian Ministry in regard to the operation of the asset. In accordance with the promulgation of Law No. 3 of the French Military Government prohibiting such action, no sale of the German asset may be made. Exceptions are made in the case of sales by the Austrian Ministry of minor assets which are deteriorating. While the French have never challenged the validity of the passage of any legislation affecting German assets after it has been approved by the Allied Council, they have not permitted the operation in their zone of any legislation which might bring about the disposal of German assets before the French themselves have given their written consent to the Austrian

Government. In cases in which the German ownership of the property appears valid, either because such ownership existed before 15 March 1938 or because large increases in the value of the property were brought about by investment of German capital, the French Element has not permitted any disposition of the property by the Austrian Government or its agencies. British Action On 9 July 1946, the British Military Government in Vienna promulgated its notice No. 3 which established control over German assets in the Britishoccupied districts of Vienna and premises occupied by them in the first district. The notice forbade, except as authorized by military government, any transfer of property owned by the Government of Germany or its nationals and situated in the British-occupied districts of Vienna. The property of any business enterprise could continue to be used for its normal purposes and government property for governmental or administrative purposes. No real estate might be leased for a term exceeding thirty days, but bank accounts might be operated for normal purposes, subject to any restrictions placed on them by Austrian law. Notice No. 3 was the first British regulation controlling German property in Vienna and was chiefly directed against the Soviet order No. 17 of 27 June 1946 which confiscated German assets in Eastern Austria. It was a precautionary measure designed to prevent the Soviets from indirectly controlling German assets in the British-occupied districts of Vienna. The British thought that in cases in which the main office of a German firm was located in Eastern Austria, the Soviets might order the branches located in the British-occupied districts of Vienna to deliver the assets of the branches to the Soviet Zone. British notice No. 3 gave the branch managers of German firms in the British-controlled districts a legal reason not to comply with any such Soviet requests which might be made. In October 1946, ordinance No. 553 was promulgated, which forbade any transfer of ownership of German property and was designed to serve the same purpose in the British Zone, with respect to indirect Soviet control, as did notice No. 3 in Vienna. As was pointed out previously, the British High Commissioner in the Allied Council did not reject the transfer of ownership of German assets to the Austrian Government by means of the Austrian Nationalization Laws as a violation of the Control Agreement. Nor did he later object to the passage of the Austrian Restitution Laws, which could also effect the

79

transfer of assets from present German record ownership. Insofar as these Austrian laws effected a transfer of ownership of property under German title, they could appear to violate the British Military Government regulation cited above. Since the purpose of the British ordinances was to prevent Soviet activity with respect to German property in the British Zone but not to hinder Austrian legislation, the British felt called upon to inform the Austrian Government accordingly. With respect to the nationalized property, the British authorities requested that the Austrian Government take no action by way of a disposal or otherwise which would prejudice any settlement of German property in Austria. The Austrian Government answered that they would not do so. With respect to the restitution laws, the British Element informed the Austrian Government in July 1947 of the formal release of any property which was required to be dealt with under the Austrian restitution legislation and had been subject to the terms of British Military Government ordinance No. 553 and Vienna notice No. 3. The British Element interpret the refusal of the Allied Council unanimously to reject the Nationalization and Restitution Laws as sufficient written approval for the laws to operate on assets which may be in the name of German nationals but subject to restitution. Whenever the Austrian Government has requested approval from the Allied Council for any action affecting German assets which the Government wished to take, the British have not opposed such approval. Unanimous Allied Council consent, however, has not been granted, usually because of Soviet or French objection. Thus, execution of Austrian court decrees in restitution cases ordering a change of title of German propert}^ back to the rightful owner has been often blocked. Since the passage of the Austrian Public Administrator's LawT in the summer of 1946, the British have left the administration of any German assets entirely in the hands of the Austrian Government. The Ministry for Property Control and Economic Planning appoints and controls the ad ministrators. The only restraint exercised by the British on the Ministry's actions is the prohibition against the transfer of ownership of German property contained in Vienna notice No. 3 and British Military Government ordinance No. 553. Even in such cases, special licenses have been granted by the British, at the request of the Ministry, exempting certain transactions from the prohibition of these ordinances. The British require no regular reports from the Ministry on these German assets, but reserve the right

eventually to request an accounting from the Austrian Ministry, should any German property in their zone be required for reparations. Since the adoption of the New Control Agreement the British Element has exercised the least direct control over German external assets in Austria.

Austro-American Cooperation with Respect to German External Assets in the US Zone of Austria
As the Austrian Government took full advantage of the terms of the Trusteeship Agreement promulgated on 16 July 1946, substantial progress was made in the operation and integration of German assets into the Austrian economy. Under the provisions of the agreement, the US Element received an increasing number of requests for authorization to lease, rent, sell, or otherwise convert physical surplus and perishable assets of German firms in the US Zone. The nature of these requests and the information supporting them were indicative of an increased efficiency of the organizations of the Ministry charged with the responsibility for the supervision and administra tion of German properties. In November 1946, eleven former German companies engaged in the petroleum business in the US Zone of Austria, as well as the Eugen Grill Werke, a German firm controlling the largest pool of machine tools in the US Zone, were transferred to the trusteeship of the Austrian Govern ment. The machine tools from the latter firm were loaned to other companies in the US Zone and aided in the production of vitally needed consumer goods. Eighty-two thousand machine tools were surveyed, registered, catalogued, and classified in Upper Austria and Land Salzburg. These were then released to the Austrian Government, subject to the provision that the Austrian Government assume liability in connection with any claim subsequently arising in regard to these assets (see also Vol. II. p. 48). Machines showing German ownership or no ownership at all were turned over to the Ministry for Property Control and Economic Planning under the terms of the Trusteeship Agreement subjecting the trustee to accountability to the US Element and with the understanding that any transfer from the US Zone of Austria would require the prior approval of the US Element. Fifty-six business enterprises under direct US control, as well as 333 German-owned firms located in the US controlled areas of Austria released to the Austrian Government under trusteeship, were integrated into the

80

Austrian economy between July 1946 and December 1947. This incorporation of productive capacity represented an important contribution to Austria's resurgent economy and reflected a major accomplishment of US policy in Austria. No statistical data on the activities of the other occupying powers are available.

German Assets in the City of Vienna

By the Allied Agreement of 9 July 1945, the City of Vienna was divided into four separate occupational sectors. A fifth sector, the first district, or International Zone (in the center of the city), was set aside as an area of joint control. It is in this district that the large financial enterprises of Austria, the banks, insurance companies, shipping companies, etc., have their head offices. Title to many of these enterprises, as recorded in the Land and Commercial Registers on 8 May 1945, indicated German ownership. While the separate policies of the four Allies as to the fate of German property could not be reconciled for Austria as a whole, each power could enforce its different policies to a certain extent in its separate zone of Austria and individual sector of Vienna. But in the first district the different policies were bound to clash. Because of the requirement of unanimous agreement as a pre-condition to Allied action, in respect to German assets, the opposing policies have prevented any definite action in the first district. The practical result of this Allied inaction has been to give as much control as possible to the Austrian Government. The Soviet Element has been unable to control and use, or even investigate to its satisfaction, German property located in the first district. The French, willing enough to agree to a compromise solution on German property, have been unable even to regain control of enterprises located there which were formerly French but taken by the Germans after the Anschluss. The US Element, unable to achieve quadripartite agreement applicable to all of Austria that only a limited amount of German property would be taken as reparations, has not been able to obtain satisfactory quadripartite control or even investigation of German property located there. Control over German property in the first district is still where it was in May 1945, in the hands of the Austrian Government. Administrators for property under German title in the first district are presently appointed and removed at the discretion of the Ministry for Property Control and Economic Planning.

The Gty as a Whole On 10 May 1945, the Austrian Provisional Government promulgated Law No. 9 which permitted it to appoint administrators for properties wherever the public interest demanded it. Under this law, administrators were appointed for most large German-owned properties in Vienna. At that time, the city was under the sole control of the Soviet army. In August, the three Western powers entered the City. In September 1945, the Joint Property Control and Restitution Commission, a permanent sub committee of the Vienna Inter-Allied Command (VIAC), was established. While the Soviet Union generally agreed to the freedom of each Allied power to protect the property interests of his nationals in the USSR Sector, it frequently developed that a property alleged to belong to an Allied national was registered as German-owned in the Land Commercial Registers. As a result, the Soviet Element stated it would require documentary proof of ownership for the other Allies to appoint administrators for property located in the Soviet Sector of Vienna. No further attempts were made by the three Western powers to directly appoint administrators in the Soviet Sector. The only area where differences still existed was the first district.
The First Distriet (International) Control of German Property

At a meeting of the Joint Property Control and Restitution Commission of VIAC in January 1946, lists of properties claimed by the US, United Kingdom, and France in the first district were exchanged, the USSR submitting a list of German properties which the Soviets claimed as war booty. At a further meeting in February 1946, it was agreed that each power would be responsible for property claimed by its nationals in the first district as shown by the lists submitted. At this point a negative policy was adopted by the Western Allies under the leadership of the United Kingdom. If the USSR would neither agree to the Western Allies' definition of German property, nor propose for discussion a definition of its own, no German property would be investigated, much less controlled. At a meeting in May 1946, the Joint Property Control Commission considered the list of German properties in the first district claimed by the Soviet Element's representative in January as war booty. When it was

81

pointed out that only quadripartite action could be taken with respect to German properties in the International Zone, the USSR representative agreed to take no action except by such agreement. However, quadripartite agreement for joint control of German properties in the first district was being studiously avoided by the British until the USSR would agree to a definition of German property satisfactory to the United Kingdom. The only approach to joint control of German property was made at the 35th meeting of the Joint Property Control Commission on 4 July 1946. It was then agreed that the appointment of administrators for all German property in the first district would be made by the chairman of the Joint Property Control Commission on the recommendation of the Austrian Ministry for Property Control and Economic Planning. In November 1946, the French member pointed out that since 12 September 1946 the Austrian Commercial Court had refused to register appointments of administrators made by the French authorities in the first district, explaining that the Ministry for Property Control and Economic Planning was now the appointing authority. Since the Public Administrator's Law had not been vetoed by the Allied Council, the Joint Property Control Commission accepted the explanation of the Austrian court. For a time the Ministry went about exercising its powers slowly. There was no show of immediate independence. In December 1946 and January 1947 the Ministry sought approval from the Joint Property Control Commission to appoint or change administrators for a few unimportant German properties in the first district. But for most German properties, including large-scale German enterprise in the first district, the administrators originally appointed under Law No. 9 were still in office and responsible only to the Ministry. Because of British opposition, the Joint Property Control Commission had taken no general action either to confirm their appointees or remove them from office. Only isolated cases had been examined and administrators removed.
Investigation of German Property

investigation, especially the Soviet Union and France, the US merely agreeing. At the initiative of the US Element, a plan was adopted by the Allied powers to collect all available information on German assets located in Vienna. However, only the Soviet Element, although no Soviet nationals had claims to property, investigated German assets. In March 1947, the Soviet Element stated that it wished to make separate investigations of any firms in the first district without prior permission of the commission, as the information collected by questionaires had proved inadequate. When, in April 1947, the commanders of VIAC decided that the procedure of investigating German property in the first district should go on as usual, representing an ambiguous decision since the very question was what the procedure should be, the British Element protested all subsequent unilateral action by the Soviets and urged commission disapproval. Unless the Soviets agree to a definition of German assets, there will be no British cooperation, even in investigations of admittedly German-owned property. The US is willing for such investigations to take place, and the French and Soviets urge it when German interests appear. The Joint Property Control Commission has amassed a collection of questionnaires but has not digested them. Until an agreed definition of German assets is reached, it will not be possible for the commission jointly to categorize these questionnaires of German property in the first district.

Conclusion
The US policy toward German assets in Austria has been to prevent the removal of the assets or their use as reparations by the United Nations until four-power agreement on the amount and quality to be removed or used is reached. Meanwhile, the US has attempted stringently to limit the removal of German property except against adequate compensation to Austria, either in hard currency or in equipment useful to the Austrian economy. The US has pursued this policy, not only unilaterally in its own zone, but in all of Austria, by repeatedly seeking Allied Council agreement to establish a four-power board for all German assets in Austria, irrespective of zonal location. This board would determine first, the validity of the acquisition of an asset by the Germans and second, the appropriateness for reparations of an asset unanimously agreed to be German.

Beside blocking quadripartite control of German property in the first district, the British Element also succeeded in limiting the present procedure for investigation of property in the first district. Only quadripartite action may be taken, which consists in sending out a questionnaire when all agree. The investigation is limited to turning up nominal German ownership. When property is discovered as German or part-German, the British will not agree to further quadripartite investigation as to how the property became German. The other three Allies have usually desired further

82

The brief summaries oi policies of the Soviet Union, France, and United Kingdom on German external assets in Austria, presented in the preceding pages, afford a basis merely for a general appraisal and inferential conclusion as to the relative contribution of these occupying powers to the revival of Austria's economy. It may be stated that in the control of German assets in Austria, the policy of the British Element has imposed a minimum of controls, permitting the Austrian authorities a generous latitude of action. It appears, on the other hand, that Soviet policy was to acquire as much property as possible in Austria under its interpretation of the phrase "appropriate German external assets", even though such assets may have been acquired by duress or may have an indirect United Nations interest. The adament refusal to define a German asset has permitted a certain freedom of action in putting these properties in the Soviet Zone and the Soviet Sector of Vienna at the service of Soviet interests, military and economic, as well as political, and has

crippled western efforts to arrive at an equitable solution of the issue. The French policy toward German assets in Austria tends, in principle, to support the position taken by the US and the British, with the exception that the French position stresses closer ^supervision and delegates fewer discretionary powers to the Austrian authorities. It was anticipated that by the end of 1947 the question of German assets would be settled soon under the terms of an Austrian state treaty. So far it has been one of the principal stumbling blocks to an Austrian treaty and considerably retarded the rehabilitation of Austria. In the face of a failure of four-power agreement on the disposition of German assets, the Western powers, as an interim measure, were taking steps to seek an integration of the assets into the Austrian economy on a unilateral basis. The Soviet Element was continuing its plan to exploit all of the properties claimed as German assets in the Soviet Zone for its own profit and without regard to Austrian laws.

83

DISPLACED PERSONS

Introduction
Few problems in post-war Austria have been more heartrending or difficult of solution than that of the displaced persons. The presence of such great numbers of them created a situation for which no established precedent existed, peculiar as it is to the extensive upheaval of civilization that accompanied World War II. The problem created is more than merely physical, administrative, or even political. It is a moral problem, and the responsibility for its creation must be assigned to belligerents of both sides in World War II. When the masters of the Nazi Reich forced the uprooting of millions of human beings from their homes, drove racial minority groups across national borders from one nation to another, disregarding family ties, property rights, and human dignity, the International Tribunal at Nuremberg declared these to be crimes against humanity. As to the Allied powers, although the Big Four had agreed at the Potsdam Conference that German minorities in Czechoslovakia, Hungary, and Poland would be transferred to Germany "in a humane manner," actually the transfers were, in many instances, made in the most brutal and inhumane manner. Furthermore, although the Potsdam Agreement made no mention of German minorities in Yugoslavia and Rumania, the governments of these countries treated their German minorities in a similar fashion as those who actually came under the terms of the Potsdam Agreement. The victims of these transfers were numerous, and many of these people still continue to eke out a miserable existence in Austria, a country unable either to help them or to absorb them, a country occupied by four great powers who cannot agree among themselves what the ultimate fate of these unfortunates is to be. In short, the displaced persons are unwilling guests of an unwilling host. In Austria the problem of displaced persons has been very acute from the day the guns of the late conflict ceased firing. Because of Austria's geographical position and the military and political events of May 1945, this small and poverty-stricken country was, and remains today, the gathering place of a great mass of these unfortunates. One reason was that during the war, Austria had offered a comparatively safe and central location for many German war industries, which had utilized large numbers of forced laborers whom the Nazis had gathered from the regions occupied by the German armies. Another reason that Austria was filled with foreigners was that, as the easternmost country of Western Europe, she offered an easy and obvious corridor through which persons fleeing or being driven from Eastern Europe could most easily make their way to the West. Moreover, the governments of the Eastern European countries found that Austria was their most convenient dumping ground for the unwanted German minority groups within their borders. Austria, already overpopulated and starving, could ill afford to receive these people, but neither could she prevent their being driven, sometimes at the point of a gun, across her uncontrolled frontiers. Finally, a magnet of considerable force drew many of these desperate people to Austria, namely the presence of the US occupation forces. The United States has a proverbial reputation for generosity, especially to the "underdog," and many of these people were convinced that their trials and tribulations would be at an end once they were "under the Americans." Those who were more practical believed at least they would get better treatment in regions controlled by the United States. And it has undoubtedly been the desire of the people of the United States, represented by the US Element in Austria, to do what was humanly possible to alleviate the lot of these unhappy people. In the pages following, an attempt is made to explain some of the complexities of the displaced persons problem and to indicate the diffi culties encountered in efforts to reach a solution that would be both practical and humane.

Origins and Classification of Displaced Persons

Briefly noted, the displaced persons population of Austria is made up of the following five groupings: 1. "United Nations Displaced Persons," who had been brought to Austria by the Germans during the war, from German-occupied territories which formed part of the United Nations. These include France, the Soviet tJnion, Poland, Czechoslovakia, Yugoslavia, Greece, Belgium, Denmark, Norway, and the Netherlands. 2. "Ex-Enemy Displaced Persons," that is Italians, Hungarians, Bul garians, Rumanians, many of whom had been displaced to Austria to labor for the German war machine.

84

3. "German Reich Citizens," who had come to Austria after the Anschluss in 1938. After the separation of Austria from Germany, these individuals were considered as expellable foreigners. 4. "Volksdeutsche," who were German speaking minority groups, many of whom had been settled for centuries in various Eastern European countries and who had in some cases formerly been citizens of the old Austro-Hungarian monarchy. Some of these Volksdeutsche had been moved to Austria by the Nazis; others had fled westward in advance of the Soviet armies; but the majority had been expelled by the governments of Czechoslovakia, Yugoslavia, Hungary, Poland, Rumania, and Bulgaria. 5. "Refugees," both racial and political from Eastern countries. The majority of the refugees were Jews who had fled from the anti-semitism of Eastern Europe (especially of Rumania and Poland). The political refugees were individuals who were not in sympathy with the increasingly communistic regimes of the Soviet satellite countries.

Development of the DP Problem in Austria

The Situation May to July 1945

The presence of large numbers of displaced persons presented the Allied powers in Austria with a very difficult problem immediately after cessation of hostilities. During the planning stages for the occupation of Austria, it had been estimated that no fewer than 2,000,000 displaced persons would be found there. Actually, the first reasonably accurate census, completed during July 1945, revealed that the number was closer to 1,000,000 persons. Approximately 600,000 of these were located in the US Zone and consisted for the most part of nationals of France, Belgium, Holland, Luxembourg, USSR, Poland, Czechoslovakia, Yugoslavia, and Greece. Additional numbers of displaced persons, however, continued to be discovered after the first census. By 1 January 1947, in the US Zone alone, a total of 408,568 non-Austrians had been added to the original figure. The new arrivals comprised, for the most part, Volksdeutsche who had been literally dumped into Austria across the Czech, Hungarian, and Yugoslav borders. This new wave of displaced persons had been uprooted from their homelands in accordance with the Potsdam Agreement, which contained a provision whereby German minorities (many of whom had been settled in these countries for centuries) were to be expelled from Hungary, Czechoslovakia, and Poland. In addition, Volksdeutsche from Rumania and Yugoslavia
6*

who were not subject to the terms of the Potsdam Agreement were also dumped into Austria without the agreement of either the Austrian Govern ment or the Allied representatives in Austria. Displaced persons also infiltrated into the US Zone from other zones of Austria. Moreover displaced persons who had been living among the Austrian population in the US Zone of Austria found that it was to their advantage to seek US protection by registering with US military authorities. There were also approximately 100,000 displaced Austrian citizens who had fled westward to escape the advance of the Red Army and who further congested the already over crowded US Zone. The collapse of the German army was accompanied by the complete breakdown of all law-enforcement agencies in Austria. Tens of thousands of displaced persons roamed the countryside, looting and pillaging as they went. Tens of thousands were housed in hundreds of small, scattered barrack settlements some of which had been former concentration camps. Each settlement housed many different nationalities. It was imperative that some sort of order be restored. To achieve this, it was necessary, first, to ascertain the nationalities of the displaced persons; then to repatriate all those who could be moved as rapidly as available transportation and reception facilities would permit; and finally, to house, feed, and care for those who could not be repatriated immediately.
First Repatriation Program

Conditions in Austria in May 1945 were such that every effort had to be made to reduce the surplus population as quickly as possible. The first and most logical step was to speed the repatriation of all those displaced persons who wished to return to their homes, as well as to persuade as many as possible of those who were merely lingering unproductively in Austria, to return home also. The presence of great numbers of non-working displaced persons in Austria was putting a considerable strain on the economy and was retarding recovery. There was, moreover, the humanitarian obligation on the part of the Allies to assist the victims of the Nazi war machine to return to their own countries whence they had been forcibly uprooted. To help in this difficult task, the services of repatriation missions were utilized. Missions were accredited from all European nations whose nationals were found in Austria. These missions rendered invaluable aid in helping the repatriation of large numbers of displaced persons from Austria. Organized movements of displaced persons to their home countries began in June 1945, and thus the majority who desired to return home were very

85

shortly moved out of Austria. The repatriation of all United Nations nationals from Western Europe who were in the US Zone, totalling 40,953 persons, was completed by December 1945. During the same period, 69,496 Soviet citizens, 41,999 Poles, 43,375 Italians, 13,195 Czechoslovakians, 15,572 Yugoslavs, 77,667 Hungarians, 2,489 Greeks, 2,782 Rumanians, 24 Baltics and 1,546 others were repatriated. In addition, 161,882 Germans (Reichsdeutsche) were moved to Germany, and 90,255 Austrian refugees in the US Zone were assisted in returning to their homes in other parts of Austria, especially Vienna. This made a total of 561,235 persons repatriated from the US Zone alone between May and December 1945 (see St. A. Table 57). With the deterioration in relations between Eastern and Western nations, which began as early as the last months of 1945, there was a noticeable drop in the number of persons desiring to be repatriated. By the beginning of 1946, it was apparent that the majority of displaced persons who desired repatriation had already departed from Austria. On 31 December 1946, a total of 90,176 repatriable displaced persons were in the US Zone. One year later, on 31 December 1947, only 10,879 of these had volunteered for repatriation. The care and resettlement of those who refused to accept repatriation, as well as the care of Volksdeutsche in Austria, remained a difficult problem for the military as well as the various international agencies offering help to refugees (see St. A. Table 57).

Quadripartite Control of Displaced Persons

The Quadripartite Displaced Persons Directorate of the Allied Commission held its first meeting in August 1945. Attempts were begun at that time to find a common basis of action which would permit the Allied powers and the Austrian Government to remove the excessive number of displaced persons from Austria. Unfortunately this proved to be impossible, because Soviet policy was based on the principle of forced repatriation while the Western powers maintained that an individual has the right to choose freely the society in which he will live. Because of this difference of opinion on basic principles almost every quadripartite discussion of matters involving displaced persons ended in disagreement. As a result, the handling of the displaced persons problem in Austria has been done on a zonal basis. It appears improbable that this conflict of basic policies will ever be reconciled. The inter-Allied differences were so apparent that when the Austrian Control Agreement of 28 June 1946 was drawn up, it contained stipulations which empower each High Commissioner, in the absence of quadripartite agreement,

to act independently in his zone of occupation, on any matter involving the care, evacuation, and exercise of judicial authority over displaced persons. The issue of handling displaced persons, like many other issues in Austria, resulted in an East-West split among the four elements. The Western elements have, on the whole, been in agreement as to the best method of solving the displaced persons problem in Austria and have adopted a more or less common line of action. There have been, naturally, some differences of method because of the separate zonal operations. Generally speaking, however, the basic policies of the Western elements have been as follows: 1. The provision of proper care of displaced persons within Austria, pending their repatriation or their resettlement; 2. The integration of displaced persons into the Austrian economy, pending their removal from Austria, for the purpose of assisting in their rehabilitation; 3. Implementation of the provisions of the Potsdam Agreement, which pertain to Austria by decision of the Allied Control Commission for Germany, relative to the expulsion of Volksdeutsche from Hungary, Czechoslovakia, and Poland; 4. The according of legal protection to displaced persons pending final solution of the whole displaced persons question; 5. Co-operation with governments and international agencies insofar as they are concerned with the care, repatriation, and resettlement of displaced persons.

Care of Displaced Persons

Displaced persons were divided for the purpose of administration and care into two categories: United Nations displaced persons and ex-enemy displaced persons. Ex-enemy displaced persons are nationals of states which engaged in the war effort on the side of the German Reich. This category also includes Volksdeutsche who, although they may have been nationals of friendly states, were members of German minority groups and were considered to have contributed to the German war effort. United Nations displaced persons are nationals of states which engaged in the war on the side of the United Nations. "Persecutees," that is persons who, regardless of nationality, were persecuted by the Germans because of race* religion, color or political belief, were also considered part of the United Nations displaced persons group.

86

Even after the cessation of hostilities in 1945, large numbers of people were still moving throughout Europe. To prevent a continued influx of new refugees into Austria, especially into the US Zone, it was announced that persons who were not in Austria on or before 1 November 1945 would be considered ineligible for displaced persons care. In this manner it was possible to relieve an already overburdened staff of the necessity, with the limited facilities at hand, of caring for people who entered Austria for reasons not directly connected with the war. Responsibility for the care, evacuation, and exercise of judicial authority over displaced persons in Austria, regardless of category, remained solely in the hands of the Allied military authorities. The Austrian Government was not empowered to act directly in these matters without previously obtaining permission from the Allied Council or the individual High Com missioner concerned. There were certain zonal differences in the handling of displaced persons. In the French and British Zones, all administrative functions pertaining to both United Nations and ex-enemy displaced persons were retained by the military authorities. In the US Zone, on the other hand, administrative responsibility was divided. The US authorities, or accredited international agencies such as UNRRA, and later IRO, staffed and controlled United Nations displaced persons camps. Ex-enemy displaced persons were maintained in camps staffed completely by Austrian authorities under general US military supervision. The Austrian Government was charged from the beginning with the responsibility for furnishing all supplies, including food and housing, necessary for the maintenance of displaced persons of all categories. United Nations displaced persons were given preferential treatment and were housed in the best available camps and received a daily ration considerably higher than the average Austrian ration at that time. This preferential treatment for United Nations displaced persons continued until 20 August 1946. From that date on, all displaced persons received the same rations as the Austrian civilian population. Supplementary rations were available on the same basis as for Austrian workers. Ex-enemy displaced persons received the normal Austrian consumer ration from the beginning.
UNRRA Contributions

Austria. Material aid in the form of clothing, medical supplies, etc., was rendered by UNRRA to this group of displaced persons. Moreover, when considering UNRRA's total contribution to the displaced persons problem, it must be remembered that vast quantities of food entered Austria for the specific purpose of aiding these unfortunates. The UNRRA relief program for Austria was based on the total population of Austria including displaced persons. In addition, UNRRA operated a Central Tracing Bureau which was of incalculable value in the difficult task of tracing missing persons and furnishing replies to the thousands of inquiries concerning the whereabouts of individual displaced persons. The UNRRA-Austrian Government Agreement stipulated that since the question of displaced persons is one that is reserved to the Allied Council, UNRRA's participation in the care and maintenance of displaced persons would be based on an agreement between UNRRA and the Allied Council. Because of Soviet opposition, however, such an agreement could not be reached. UNRRA's participation in displaced persons activities in Austria therefore had to be carried out by means of interim agreements between UNRRA and the High Commissioners of the Western Powers. The UNRRA mission to Austria ceased operations on 31 December 1946, but UNRRA displaced persons teams continued to work until 1 July 1947, at which time their operations were taken over by the International Refugee Organization (IRO).
IRO replaces UNRRA

UNRRA gave considerable assistance to the Allied powers in the adminis tration and maintenance of United Nations displaced persons camps in

After the dissolution of UNRRA, the United Nations Organization, realizing the gravity of the displaced persons problem throughout Europe, decided to form the International Refugee Organization to aid in the solution of the complex problem of displaced persons on an international basis. The Preparatory Commission for the International Refugee Organization met for the first time in Geneva on 1 February 1947 and assumed all the functions of the Intergovernmental Committee on Refugees and UNRRA insofar as they pertained to displaced persons, at the same time working towards the bringing into effective operation of the organization itself. A preparatory commission of the International Refugee Organization (PCIRO) began operations in Austria in July 1947, under an agreement with the US Element, the terms of which committed the Austrian Government to furnish PC IRO all supplies necessary for the maintenance and care of displaced persons eligible for assistance under its mandate.

87

Camps in the British and French Zones, however, remained under the operational control of the military, who were assisted by the PCIRO in matters involving the care, rehabilitation, repatriation, and resettlement of displaced persons. In the US Zone, however, the PCIRO assumed immediate operational responsibility for camps in which UNRRA had previously operated. Unfortunately, UNRRA, because of personnel shortages, had not been able to place teams in all camps housing United Nations displaced persons in the US Zone. As of 31 December 1947, 14 camps, housing 13,666 United Nations displaced persons, still remained under US operational control. It was expected that early in 1948 PCIRO would assume full reponsibility for non-UNRRA camps housing eligible IRO displaced persons.

Austrian Government agreed to furnish from 1 July 1947 all essential supplies, including food, for the 16,531 Jewish refugees then in camps. During the last half of 1947 there was again a slight increase in the number of Jews receiving care in Austria. On 31 December 1947, a total of 19,270 Jewish refugees were in camps under the operational control of the Inter national Refugee Organization. Their presence posed a complex problem. These refugees naturally associated Austria in their minds with the former German Reich. Hence they refused for the most part, to contribute anything to Austrian reconstruction. It was imperative, therefore, that they be assisted in their desire to emigrate from Austria at the earliest possible moment.

Jewish Refugees
During the spring and summer months of 1946 thousands of Jewish refugees poured into Vienna from Poland and Hungary, in the hope of emigrating either to Israel or the Western hemisphere. No provision had been made in planning the Austrian occupation for this influx, and their presence overwhelmed all local facilities. The refugees avoided the British Zone of Austria for political reasons and the French Zone of Austria because it was too far West. The US Zone and the US Vienna Area therefore bore the brunt of the influx. New camps were opened as a matter of necessity. The support of such an influx was too great a burden to place on the Austrian Government, so the minimum necessities, including food, were furnished by the US army. The American Joint Distribution Committee contributed liberally with supplies and personnel. Other Jewish organizations and UNRRA worked feverishly to assist the army in caring for these refugees. Approximately 90,000 Jewish refugees entered Vienna and the US Zone between May 1946 and April 1947. Two factors contributed to the alleviation of the tremendous burden that resulted from this influx. In September 1946 the US Zone of Germany was induced to take 30,000 Jewish refugees from Austria. Also, many of the Jews themselves were enroute to Palestine and the illegal departures from Austria were sufficiently high to reduce the Jewish refugee population to approximately 25,000 persons. Finally by July 1947 the figure was stabilized at approximately 20,000 (see St. A. Table 59). The International Refugee Organization took over the administration of Jewish refugee camps on 1 July 1947. Under the IRO constitution Jewish refugees were eligible for assistance from this organization, and incoming refugees therefore became the administrative responsibility of IRO. The

The Volksdeutsche Problem

One of the most vexing and complex problems in post-war Austria has been that of the Volksdeutsche, or German minorities from certain Eastern European countries. These minorities had been settled for many generations in what had formerly been border provinces of the old Habsburg Monarchy, maintaining their German language and customs. Among the larger of these minority groups were: the German-speaking population of Bohemia and Moravia (parts of Czechoslovakia) often referred to as "SudetenGermans," the "Saxons" of Transylvania (now part of Rumania), and large groups in Poland, Galicia, and in the ethnologically-mixed border regions of Banat, Slovenia, and Croatia (now Yugoslavia). Smaller German-speaking settle ments were also to be found in other parts of Eastern Europe, in Slovakia, Hungary, and Bulgaria. All these German minorities had been subject to Nazi propaganda and proselytization. Hence they were suspected and disliked by the majority of the population in the nation of which they were citizens. Upon the collapse of the German Reich in 1945, a general movement was set afoot by the various governments concerned to rid themselves of these German minorities. The Potsdam Agreement provided for the forcible but orderly and humane transfer to Germany of German minorities from Hungary, Czechoslovakia and Poland. No mention was made in this agreement of German minorities in Yugoslavia, Rumania, or Bulgaria. But minority Germans from these countries also found their way into Austria. By the end of the war, Austria was already filled with hundreds of thousands of Volksdeutsche. Some of these had been transported to Austria from Eastern countries by

the retreating German army. But the majority had been dumped into Austria by the governments of the countries concerned in anything but a humane manner, immediately following the war. Most of these people were penniless, having been deprived of everything, including their personal possessions, and their means of livelihood when they had been forced to leave practically at the point of a gun. Austria could not absorb all of them. Their removal from Austria became a very urgent and necessary operation. On 24 January 1946, the Allied Control Commission for Germany, in reply to an urgent request from the Displaced Persons Directorate in Austria, informed the Allied Council for Austria that the provisions of the Potsdam Agreement would be made applicable to Austria, that Hungarian and Czecho slovakian Volksdeutsche would be transferred to the US Zone of Germany, and that Polish Volksdeutsche would be transferred to the British and Soviet Zones of Germany. The letter also granted Allied authorities in Austria permission to expel Reichsdeutsche then resident in Austria to the Zones in Germany in which they had formerly been domiciled. The setting forth of these new procedures in respect to the Volksdeutsche seemed to promise a partial solution of the displaced persons problem in Austria. This assumption, however, proved to be too optimistic, since only a part of this program was actually carried out. Approximately 100,000 Czechoslovakian and Hungarian Volksdeutsche were moved from Austria to the US Zone of Germany, and a total of 250,000 Reichsdeutsche from all of Austria were sent to the three Western Zones of Germany. The Soviet Element in Germany, moreover, violated this agreement by refusing to accept any Reichsdeutsche whatsoever from Austria. The British and Soviet Elements in Germany were unable to agree on what portion of the 11,000 Polish Volksdeutsche then in Austria would be absorbed into their respective Zones of Germany. As a result, the program to move Reichs deutsche from Austria into the Soviet Zone of Germany and Polish Volks deutsche into the Soviet and British Zones of Germany was never carried out. Nor was removal of Volksdeutsche from Austria by any means com pleted by the end of 1947. In September 1946, the US authorities in Germany refused to accept further shipments of Volksdeutsche from Austria. The US Zone of Germany had been receiving by far the greater portion of these people from Austria as well as 150,000 Hungarian Volksdeutsche directly from Hungary. Since at the same time the housing situation in Germany was very critical, further shipments from Austria, (except for small numbers of Reichsdeutsche from the US Zone) had to be refused. A total of 84,666 expellable Volksdeutsche and 34,675 Reichsdeutsche therefore remained in

Austria. Of these, 30,448 Volksdeutsche and 9,955 Reichsdeutsche were in the US Zone of Austria. The Potsdam Agreement did not contain any provisions for the removal to Germany of German minorities from Yugoslavia, Rumania, or Bulgaria. Consequently, by the end of 1947, approximately 190,000 non-expellable and unwanted Yugoslavian, Bulgarian, and Rumanian Volksdeutsche remained in Austria, of which 89,114 were in the US Zone. Many attempts have been made to solve the problem but without concrete results. The Allied Control Commission for Germany has been requested on several occasions to accept these Volksdeutsche, but these requests have consistently been refused. In early 1947, the Council of Foreign Ministers at the Moscow meeting, while attempting to write an Austrian State Treaty, directed that the Allied Control Commission for Germany study the possibilities of further absorption of German minorities from Austria. But by 1 January 1948 no concrete decision had yet come from this study. The policy of the US Government has been to give the Austrian Govern ment the widest possible latitude in choosing from among displaced persons in Austria those persons it desires to retain as citizens. Since 4 June 1947, the US Element in Austria has based its operations on a directive which allows the Austrian Government full responsibility for exempting Reichs deutsche and Volksdeutsche from expulsion from Austria. Up to December 1947, the Austrian Government exempted 5,501 Reichsdeutsche and 24,372 Volksdeutsche in the US Zone, and a total of 71,705 of both categories throughout Austria as a whole. The Austrian Government has stated on numerous occasions, however, that it is not in a position to absorb the total number of Volksdeutsche now present in Austria. A solution for the Volks deutsche problem must yet be found. One solution of this problem depends on the ability of Germany to absorb those Volksdeutsche which the occu pational authorities there had previously agreed to accept. However, there are also other Volksdeutsche whom Austria would not be able to move to Germany, since they are not subject to the provisions of the Potsdam Agreement. There has been no indication up to the present that the problem of this latter group will ever be satisfactorily resolved.

Resettlement
General A considerable number of displaced persons refused repatriation and it became clear that only an effort on an international scale could lead to a

89

solution of this gigantic problem. The United States Government was the first to make a gesture to relieve Austria and other countries of this tremen dous burden. On 22 December 1945, President Truman directed that emigration from Central Europe would be resumed under existing quotas in order to alleviate the suffering caused by the dislocations of populations resulting from the war. By 31 December 1947, 1994 displaced persons from Austria had been admitted into the United States under the terms of the directive.
Intergovernmental Committee on Refugees

solution to the problem of displaced persons lay in their resettlement in countries other than their countries of origin. Prior to the formation of the International Refugee Organization, governments and other international agencies had grappled with the problem. Owing to inadequate facilities and lack of worldwide organization, however, the results of their efforts were meagre, compared to the extent of the problem at hand (see St. A. Table 60). Its final solution will depend on how succesful the International Refugee Organization will be in persuading various governments to accept large numbers of Europe's displaced persons.

The first international organization which made any serious attempt to solve this knotty question was the Intergovernmental Committee on Refugees. This Committee was formed in Switzerland during 1938 on the initiative of the President of the United Staates. Its stated purpose was the care of the great number of refugees who at that time were fleeing from Nazi persecution. During the war years the activities of the Committee were naturally curtailed. After the war, however, the Committee began operations in Europe under a mandate which directed it to maintain and transport for resettlement all persons who, as a result of events in Europe, had been obliged to leave their countries of residence because of danger to their lives or liberty on account of their race, religion, or political beliefs. Representatives of the Committee began their activities in Austria in the spring of 1946. The time was not ripe, however, for large-scale resettle ment. Transportation was difficult to obtain. Conditions in countries outside Europe immediately following the war were such that governments were not prepared to accept immediately a great number of refugees. The Committee did valuable work, however, in that it brought survey teams from overseas countries, and particularly from South America, whose members appraised the displaced persons field in the light of their require ments at home and who were, therefore, better prepared to act with dispatch when the Intergovernmental Committee on Refugees was succeeded by the International Refugee Organization on 1 July 1947.
The International Refugee Organization

Crime among Displaced Persons

The exercise of judicial authority over displaced persons is a reserved matter under the Control Agreement, and displaced persons may not be tried in Austrian courts without prior permission from the Allied Commission or the several High Commissioners acting independently within their respective zones. This procedure was devised to afford legal protection to persons who, in view of their stateless character, do not in fact enjoy the protection of any government. In the US Zone, cases involving breach of Austrian law by displaced persons are generally turned over to Austrian authorities for disposition. Crimes committed by displaced persons against the occupational forces or endangering Allied interests are generally tried in US Civil Affairs Courts. Much has been written about the criminal activities of displaced persons in Austria. There has been a certain amount of exaggeration on this subject, for political or other reasons. This has resulted in an over-emphasis on the criminal aspects of the displaced persons problem in Austria. The official statistics on crime in Austria, as reported by the Austrian Ministry of the Interior, show that during the calendar year 1947 approximately 64% of all crimes were committed by Austrians, 12% by foreigners, and 24% by unknowns. The same statistical records reveal, moreover, that the large majority of crimes in Austria involving assault were committed in the Soviet Zone of Austria where, it is alleged, no displaced persons problem exists.

Contribution of Displaced Persons to Austrian Recovery

A great deal has been written and spoken about the burden which Austria must carry because of the presence within her borders of large numbers of displaced persons. Very little, on the other hand, has been said of the

With the foundation of the International Refugee Organization in February 1946, the United Nations made the problem of refugees their concern. It had become universally recognized that the only hope of a

90

contribution to Austrian recovery made by these same displaced persons. Displaced persons, are somewhat understandably unpopular with the Austrian population, who have the mistaken idea that they consume an unproportion ately large amount of goods that rightfully belong to the Austrians. The public, as a whole, is generally unaware of the fact that without displaced persons labor Austrian recovery would not have advanced as rapidly as it did. None of the political parties or public bodies in Austria has yet dared, in the face of this public disapproval, to appraise publicly the displaced persons contribution to the rehabilitation of Austria. Yet this contribution has been considerable. In August 1946, the US Element decided to extend the provisions of the Austrian Compulsory Labor Law to displaced persons of all nationalities in the US Zone, (except persecutees and Jewish refugees) for the two-fold purpose of helping displaced persons to rehabilitate themselves and of assisting in the recovery of Austria. Shortly thereafter the same provisions were made applicable by the British and French authorities to displaced persons in the British and French Zones. This action enlarged the labor potential of Austria to a considerable extent. It was estimated by US displaced persons officials that as of 1 August 1947, approximately 89% of

all employable displaced persons in the US Zone were gainfully employed But no official figures are available on this important subject.

Conclusion
By the end of 1947, there was no definite solution for the displaced persons problem in sight. However, all hopes were placed in the International Refugee Organization, which had just emerged from its organizational stage. The situation in Austria had become clear. Many of the displaced persons who had been stranded in this country at the cessation of hostilities were not repatriable; of the Volksdeutsche who had been dumped into Austria, many thousands could not be sent to Germany; of the refugees entering this country in growing numbers, many could not continue their journeys and were left in Austria (see St. A. Table 58). Even though many thousands of these unfortunates honestly earned their own living and made their contribution to the reconstruction of Austria's economy, the country could not absorb more than a limited number of them. The large majority would become an ever-increasing burden on this small country as it returned to peace-time economic normalcy. Therefore, resettlement on an international scale remained the only hope.

91

EDUCATION IN AUSTRIA

Glossary of German Terms

Types of Austrian schools with equivalents in the United States.
(Since these terms appear very frequently in the course of the text they are explained here for the sake of clarity). Elementary school: usually includes in rural areas the first8 years; in urban areas only the first 4. Eauptschule Upper level (last 4 years) of urban elementary school. Mittelschule Secondary school; age level 1018; corresponding approximately to American junior high school and high school. Gymnasium Secondary school with emphasis on classical subjects. Bealgymnasium ... Secondary school with less emphasis on classical subjects and more on modern languages. Realschule Secondary school with emphasis on natural sciences and modern languages. Frauenoberschule . . . Girls' secondary school of "Realgymnasium" type with courses in home economics. Sonderschule Special school for mentally or physically handicapped. VolksschuU

administrative agencies, to remove objectionable instructional materials, and to revise curricula and courses of study, for an early resumption of educ ational activities. By the fall term of 1945, military government agencies in the Western zones had helped in clearing many of the school buildings of emergency installations, in making temporary repairs, and in screening personnel. This enabled many schools throughout the country to reopen. Approximately 50% of the children of elementary school age were accommodated on the first day of the semester. The reopening of secondary schools was slower, and it could not be effected until December 1945. By that time 90% of all children aged six through eighteen were back in school. Universities and other higher schools resumed operations at the usual time in autumn, but with greatly reduced staffs, depleted and disorganized facilit ies, and in many cases, in severely damaged buildings. Travel restrictions, difficulties in obtaining food and shelter, and strict measures adopted by the Austrian authorities in the admission of students kept the number of students far below normal figures (see St. A. Table 72).

Educational Conditions and Controls after the War

Conditions after the War
When hostilities ended on 8 May 1945, educational activities in Austria were practically at a standstill. Schools still functioned, but they were soon closed by military order in the British, French, and US Zones. In the Soviet Zone they remained open. In all sections of the country, many school buildings were occupied by troops, displaced persons, refugees, or by emergency civilian installations of various kinds. In the larger cities, some buildings had been destroyed and many others had been badly damaged by war action. Invalu able libraries and most of the scientific and technical equipment had been destroyed, stolen, or scattered and hidden for safekeeping. Administrative services were thoroughly demoralized; numerous professors and teachers were in concentration camps or had been killed. As soon as the first shock of occupation had been overcome, the civilian authorities immediately took steps to reorganize and restaff schools and local

Quadripartite Controls of Austrian Education

Quadripartite control of the Austrian educational system began in Sep tember 1945. A sub-committee of the Internal Affairs Directorate was formed, to control and supervise the departments and agencies of the Austrian central government entrusted with educational affairs. This committee later became the Education Directorate. The US Element of the committee, and later of the Directorate, has been guided in its work by US policies which demanded in the first place the complete destruction of all vestiges of Nazi influence on Austrian education. That accomplished, US policy provided for all possible aid in the reestablishment of the pre-war Austrian educational system, specifically warning against the creation of new, unfamiliar in stitutions and practices, earliest possible reconstruction of educational plants and operations, continuance in effect of all Austrian educational leg islation, not tainted by Nazi or pan-German influence, and finally, supervision without interference of Austrian schools. All other elements adopted similar policies, although the Soviets sometimes tended to give them a different interpretation.

92

The quadripartite group has considered and acted upon many problems: reactivation of various cultural and scientific organizations; obtaining of fuel, glass, and other supplies for schools; denazification of educational per sonnel; admission of foreign students at Austrian universities; textbook examination and new book production; removal of Nazi books from libraries; appraisal of curricula, films, maps, and other instructional materials; revival of school radio broadcasting, and supervision of youth activities. Although the Directorate has on the whole accomplished a substantial amount of work, its operations have not always proceeded smoothly. A major source of friction and waste of time has been the negative attitude of the Soviet Element in the Directorate toward the Austrian Ministry of Educ ation. This attitude has been repeatedly exemplified by arbitrary demands for lengthy, detailed reports, by unsympathetic criticisms of school officials for alleged dilatoriness in executing Directorate and governmental policies per taining to various problems, such as denazification and textbook production.

Governmental Controls on Austrian Education

Following the Nazi collapse in April, 1945, the Provisional Government reestablished a "Department for Popular Enlightenment, Instruction, Educ ation and Religious Affairs", so that Austria again had a central federal ad ministration of its educational system. During the years 19381945 all educational affairs had been centralized in Berlin. Finally, the Austrian Federal Ministry of Education was formally reestablished by a law of 25 July 1946. The Ministry operates under the Austrian Federal Constitution of 19201929. The educational law foreseen by that document was, however, never written. Disputes of that period between the conservative and the liberal political parties over school reforms have been resurrected in the present parliament which has had a draft law in committee since the early part of 1947. Certain important controls over educational matters are exercised exclusively by the Ministry. It prescribes the curricula for all schools, ex cept the universities; it appoints the provincial and district inspectors (usu ally on the basis of local nomination), who are responsible for insuring that the curricula are followed. All teaching appointments are made or confirmed by the Ministry. Moreover, since the Ministry bears most of the financial responsibility, it necessarily determines the allocation of funds for educational purposes.

The Ministry pays the entire cost of secondary education (including teacher education), but shares the costs of control of other institutions with the gov ernments of the Laender, the districts, and the communities.The Ministry, therefore, contributes 75% of the salaries of elementary school teachers; the Laender pay the remainder. The Laender support kindergartens and special schools, and contribute, along with the Ministry, to the support of trade schools. Maintenance of school property is usually a communal responsibility, though the Laender also contribute to this item. The rate of federal to provincial expenditures for education is roughly ten to one. The City of Vienna is considered to be one of the nine Laender. It has a central education authority, known as the Municipal School Council (Stadt schulrat). In its educational policies this department reflects the views of the Vienna Municipal Government, which is Socialist. Believing, as it does, in local autonomy in educational affairs, it has frequently resisted the encroachment of federal authority by the Ministry and by the coalition national government. Whereas most education departments of the other Laender tend to act merely as agents of the Ministry, the Vienna department often displays great initiative in effecting educational improvements. This is partly due to the fact that the Vienna education department still counts among its members former leaders in the notable educational reforms of the 1920s when Vienna was developing one of the most advanced school systems in the world. Since the end of the war, as in the 1920s, the question of school reform has been indissolubly linked with the politics of the major parties. It is unfortun ate, perhaps, tha t education should be influenced by party politics, but in Austria the question of education strikes deep at the roots of the country's political life. The sponsorship or advocacy by a minority party of practically any reform is almost certain to predicate its defeat or, at best, result in a compromise solution.

The Pattern of Austrian Education

General In 1945, the Provisional Government abrogated all school legislation of Nazi origin and reinstated the school code which had existed before 1934 (see Fig. 25). Extensive nursery-kindergarten facilities for children aged three to six are available in Vienna, and to a more limited extent, in the other cities and

93

AUSTRIAN SCMOOL SYSTEM

ENGINEERS I TEACHERS

LEARNED
PROFESSIONS WHITE COLLAR WORKERS

OBER-MITTELSCHULE 14-18 YRS. UNTER- MITTELSCHULE 10-14 YRS. HAUPTSCHULE ELEMENTARY SCHOOL

IO 14 YRS.

UNSKILLED WORKERS

NOTE: ARROWS INDICATE FLOW OF PUPILS

NORMAL

PREPARED BY U.S.ALLIED COMMISSION AUSTRIA

94

Figure 25

larger towns of Austria. Attendance is voluntary. Most kindergartens are operated as separate institutions controlled by the Public Welfare Depart ments of the Laender.

Elementary Schools
School attendance in Austria is compulsory for all children between the ages of six and fourteen years, inclusive. During the first four grades, children attend the Volksschulen. In rural areas these schools provide up to eight years of instruction; in urban centers they consist usually of only the first four grades. Upon leaving the urban Volksschule, the child may continue his education either in a Hauptschule (Grades 5 through 8), or in a Mittelschule (grades 5 through 12). The Hauptschule provides free, terminal, general educ ation for children who, in most instances, are planning to enter the manual trades and service vocations. However, every grade contains a special class with a relatively academic program for the more able pupils, a few of whom may later decide to enter a Mittelschule. The Yolks- and Hauptschulen in the fall term of 19471948 enrolled 96 per cent of all the children in the ten to fourteen age group who were attending school.

Agricultural education is, for the most part, under the supervision and control of the Ministry of Agriculture. Education in this field is offered in two- to four-year programs in special agricultural schools, as well as in an agricultural form of continuation school training, for the large majority of rural youth, which latter corresponds to the continuation school training of the urban centers. Homemaking education, in one to three year courses of study, is provided for girls in a considerable number of private parochial schools, as well as in some federally operated institutions.

High Schools
The Mittelschule consists of two four-year divisions, the lower, for the 11 through 14 age group, and the upper, for the 15 through 18 age group. The lower division parallels the Hauptschule. There are four major types of Mittelschulen; the Gymnasium, the Realgymnasium, the Realschule and the Frauenoberschule. Despite certain curricular differences, (see pp. 105) all of these institutions conceive their major function to be the preparation of students for admission to the colleges, universities, or Hochschulen. Mittel schulen are operated by the Ministry of Education. Moderate tuition fees are charged, but these may be remitted in case of need. Considered a part of the Mittelschule system, but performing a highly specialized function, are the teacher training institutions. These schools admit graduates of the Hauptschule and students who have completed the first classes of the Mittelschule. This school has a five year curriculum designed to prepare the graduates, at the age of nineteen, to teach in the Volksschulen.

Special and Vocational Schools

Paralleling the Volks- and Hauptschulen are the Sonderschulen, or Special Schools. These are included among the compulsory schools. They are designed to care for the needs of children suffering from some physical handicap. Compulsory schools include also the continuation vocational schools which must be attended one day a week by all juveniles of fourteen to seventeen years of age who are employed. Apprenticeship training is provided in the various trade and commercial fields, and leads upon completion of the threeyear course to journeyman status. These schools are operated by the Laender authorities. The other major type of vocational school, the trade school, provides full time training for numerous occupations. Completion of the eight-year elem entary school program is required for entrance. Trade schools are operated by the Federal Ministry and offer two programs. One, of three years duration, prepares the student for such occupations as auto mechanic, welder, cabinet maker, etc. The other is a five-year program and enables the graduate to en gage in more highly skilled vocations such as machinist, electrician, etc.

Higher Education
Higher education in Austria is controlled by the Federal Government,, and consists of thirteen separate institutions. Three of these, located in the cities of Vienna, Graz, and Innsbruck, are universities. The others are specialized colleges of commerce, agriculture, engineering and technology (two), mining, veterinary, medicine, music, painting, dramatics, and applied arts.

Adult Education
A most valuable supplement to formal education in Austria is provided by various adult education agencies. These organizations, of which the adult

95

education schools are the most important, have served the Austrian public since the last quarter of the 19th century. They offer rich and varied pro grams consisting of regular courses of study, lectures, films, stage plays, music, literature, conducted tours to exhibitions and museums, and educational ex cursions. Although most of the courses are on the upper elementary and se condary school levels, there are also university extension courses and study circles conducted by university professors on a non-credit basis. Adult educ ation is confined on the whole to the urban centers, although there is some agricultural instruction offered in certain towns in farming districts.

Nevertheless by the end of 1947 school officials reported that these needs had been substantially met (see St. A. Table 61).

Teachers in the Elementary Schools

By far the best developed and most extensive program of teacher training is the one devoted to the preparation of teachers for the Volks- and Haupt schulen. This work is carried on in Teacher Training Schools. In the fall of 1947, there were 14 state controlled training schools with an enrollment of 4,841, as well as 12 private schools with an additional enrollment of 948 students. Since the end of the war, there has been a gradual increase in the overall number of Teacher Training Schools. Compared to 1937-38, the conditions and facilities were greater in 1947. Enrollment in these schools has been strictly controlled to a figure considered adequate by the Austrian authorities (see St. A. Table 70). In the beginning of the school year 194546, there was a serious shortage of teachers in the Volks- and Hauptschulen. War losses and denazification had seriously reduced the number of teachers particularly in the younger age groups. The problem was solved in part by pressing into service some 1300 superannuated teachers. During the year a special three-month refresher course was organized for returning prisoners-of-war. In addition, a one-year teacher-training course was established for Mittelschule graduates. From these sources another 600 teachers were recruited. And at the end of the school year, 1,288 new qualified teachers were available for teaching positions. In 1946-47, a total of 2,013 students were graduated from the special courses and Teacher Training Schools. They were added to the teaching staffs. These additions, however, were still insufficient to meet the growing demand due to the rising enrollment in the elementary schools. The deficit was met largely by the return to service of a considerable number of teachers who had been cleared of charges of Nazi activity. The average age of teachers, however, which in 194546 was 53, was still approxim ately 50 at the end of 1947. The advanced age of the teacher corps, with its concomitant loss of energy and of flexibility poses certain difficulties in the way of achieving curricular and organizational changes.
Selection and Training of Students

Teacher Education
Teachers in the Kindergartens and of Household Arts
^A professional program of preparation is required of kindergarten teachers and also of household arts teachers for the elementary schools. These persons must complete a two-year course of study, admission to which is open to anyone over 16 years of age who has graduated from elementary school and has passed certain qualifying examinations. The curriculum for the latter group consists largely of practical work in sewing, cooking, handicraft, drawing, and child care. For the kindergarten trainee the curriculum is also of a specialized, vocational type and emphasizes student teaching, child psychology, teaching methods, and certain special subjects such as crafts, music, and drawing to give the trainee proficiency in carrying on kindergarten activities. Because of limited time, courses in general education are not presented. This lack is recognized now by many Austrian educators who are proposing that these students enter their program of professional studies at the age of fourteen and continue for a four-year period with the first two years devoted to general education. The training of kindergarten and household arts teachers is conducted in Special Teacher Training Schools. The majority of these schools are located in Vienna. In 1946, a new school for kindergarten teachers was opened in Vienna to meet the need occasioned by the removal of Nazi teachers. In the spring of 1945, the number of kindergarten teachers was just about adequate to cover the minimum needs. But as new kindergarten units were established, the demand for larger numbers of teachers became more pressing.

A breakdown of enrollment by sex in Teacher Training Schools shows that the ratio of male to female students in these schools has been changing. In the school year 194748 slightly more than 48 per cent of the population in

96

the state schools were young men, whereas the teacher corps in the Volksschulen and Hauptschulen was composed of 39 per cent men and 61 per cent women. Since the end of the war new students have been carefully selected from the top 25 per cent of the applicants. Selection is based upon the individual's academic achievement, health record, and upon the results of written and oral examinations. Increasing attention is being given to personal qualific ations. The appraisal methods, however, appear to be quite subjective and little use is made of standardized educational and psychological tests. After graduation at the average age of 19 students are assigned as teachers or substitute teachers to the Volksschulen. After two years of probationary service, the young teacher may achieve tenure by passing a comprehensive examination in educational theory and methods, music, and gymnastics. Beside the total amount of time spent in school, the quality and type of learning experiences provided by the curriculum in the Teacher Training Schools is an important factor in determining the adequacy of the young teacher's preparation. Unlike the United States, where practically every institution develops its own independent program, there is a common curri culum in Austria, prescribed by the Ministry of Education. This is true for both private and state-controlled institutions, and, as a result, the graduates of both types of schools are equally eligible and equally in demand for posi tions in the Volksschulen.
Curriculum

CURRICULUM OF TEACHER TRAINING SCHOOLS

Teacher Training Institutes (male) Subject II III IV

Teacher Training Institutes (female) II III IV V

Hours per "Week Religion Pedagogy & Pract. Teaching German Latin Geography History Mathematics Natural History Physics Chemistry Agriculture Stenography Drawing & Manual Arts . . . . . . . . Femin. Man. Arts Music & Voice Piano & Organ Violin Physical Training English Total compulsory hours 2 4 3 a) 2 3 3 3 2 . 2 3 c) 4 c) 1 1 2 2 1 la) 2 2 3 33 31 2 2 2 7/8 4 4 3 a) 3 a) 2 1 3 3 3 3 2 2/1 2 2 i) 2 2 c) 2 e) 2 2 1 2 la) la) 2 2 3 3 33 34 2 10 4 1 1 3 1 1 1 le) 2 2 la) 3 3 35 2 4 6 2 2 4 2 2 3 3 1 la) la) 2 33

Hours per Week 2 2 2 2 2 7/8 10 4 4 4 4 3 a) 3 a) 3 a) 1 2 2 1 1 3 3 3 3 3 3 3 1 2/1 2 3 2 2 2 6) 1 2 . 2 2 2 1 2 3 2 1 2 2 1 2 la) la) la) la) 3 2 2 2 3 3 3 3 31 32 34 34

The curriculum is, on the whole, similar to that of an American academic high school insofar as course titles go, but the Austrian Teacher Training Schools require many more subjects and a few more hours of atten dance. A semester program, on the average, entails 15 courses and 34 hours of weekly class attendance. The teaching of modern languages is excellent. The language is mostly English and the instruction results in rather fluent conversational ability. A distinctive feature of the Teacher Training School curriculum is its continuous provision for the development of skills in music, manual arts, and diction. Every teacher is required to learn how to lead singing, and he must be able to play an instrument. Drawing and penmanship classes must also be attended for two or three hours each semester. Diction is not always taught, but clear, forceful enunciation is stimulated at every opportunity, especially in literature classes.

a) Elective. I) Mineralogy included. c) Sometimes including penmanship.

Because of the heavy demand made by these subjects, relatively little time is left for the study of the natural and social sciences. These subjects, which in the United States are considered all-important for the development of competent citizens and teachers, receive far less time in Austria. In all classes the professor directs the student's attention to technique as well as to content. Very few courses are, however, devoted purely to the study of educational theory, history and psychology. Students in their fourth, and particularly in their fifth year, are required to spend increasingly more of their time observing and practice-teaching under supervision in Volksschulen which are usually attached to the Teacher Training Schools.

97

The present Teacher Training School curriculum is for the most part the same as that which was in use in 1934. Changes had been made only in the curriculum for the first two and, recently, for the third, school years. The new curriculum for the third year increased the time allotted for practical work from 6 to 9 hours. It introduced student government activities, and provided for the reorganization of the history and geography courses into a social studies course. Finally it replaced an ancient with a modern foreign language as a required subject.

by 1949 for all new teachers who have completed a two-year probationary period of service. A serious shortage of vocational teachers existed in 194546, when only 1,999 such instructors were employed. In the following school year the em ployment figure rose to 3,341, with only about 160 vacancies still open. By the end of 1947 there had been a further increase in the number of posi tions filled (to 3,449), and the situation was considered normal again.

Teachers in the "Mittelschulen" Teachers in "Sonderschulen"

In mid 1945, Austrian school officials re-established the special requirements necessary to teach in the Sonderschulen. For certification as a teacher in such schools, some experience as a Volksschule teacher, and two years of experience at a child clinic, a hospital, welfare station, or special school are needed. In addition, the candidate must submit to an examination board a dissertation on the phase of special education in which he wishes to engage. Favorable consideration by the board is then followed by a written examination, in preparation for which the candidate is encouraged to attend special classes given at the Padagogische Institut in Vienna or Graz. Although the Sonderschulen experienced an increase in enrollments in 1946 and 1947, teachers were recruited in sufficient number to meet the need in these years. A satisfactory pupil-teacher ratio existed in 194748. Moreover, nearly all teachers were highly qualified for this work. Prospective Mittelschule teachers are required to complete a regular univer sity program in their special field. The program also includes several courses in educational and psychological subjects. These courses are few in number and are not organized as a separate division or school of the university, as is commonly done in the United States. Noteworthy in the Austrian program is the complete lack of supervised student-teaching, which is now recognized in the United States to be an essential part of professional preparation for highschool teachers. Theoretically, the training of the new teacher continues for two years after assignment to his first position. During this probationary period, the teacher is supposed to attend a seminar conducted by the principal of his school and devoted to the study of professional problems. In practice, however, the administrative demands upon the principal's time usually result in a rather perfunctory observance of this in-service training provision. When the Mittelschulen resumed operations in 1945, their teacher needs were not much greater than the supply, despite the substantial attrition in staff. These losses were balanced out by the considerable reduction in en rollments which had taken place during the war years. Throughout the school year of 194647, this tendency continued and enrollments dropped another ten per cent (see St. A. Table 67). The rate of decrease slowed down in 1947, when only a two per cent reduction was recorded.

Teachers in Vocational Schools

Most teachers in vocational schools are not required to pursue a formal preparatory course of study; as a rule, they are master craftsmen or subject matter specialists without pedagogical training. The only exception to this rule are teachers of general subjects in the con tinuation vocational schools. These persons are former Volksschule instructors and in the full-time vocational schools they are university graduates, who have passed the examination for teaching in the Mittelschule. All teachers in these schools are encouraged to attend special courses given throughout the year at the Pedagogical Institute (Pddagogisches Institut) in Vienna, and in smaller centers for vocational training in Linz, Wels, Graz, and a few other cities. No qualifying examinations are given to continuation school teachers, but it is planned to make such examinations compulsory

Teaching Personnel in Colleges and Universities

No formal pedagogical study is required of college teachers. College in structors are recruited an dpromoted largely on the basis of competence in research rather than of demonstrated skill in teaching. The teaching staffs of Austrian colleges and universities were hard hit by the war and its consequences. Between March 1938, and-April 1945, the

98

time of Nazi domination, 36 per cent of the University of Vienna teaching staff left their positions, some voluntarily, but for the most part under com pulsion. Another 8 per cent died of natural causes. The percentages cited are considered fairly typical for all Austrian universities. The vacancies aris ing were filled in many instances by persons considered to be politically reliable, imported from Germany and by the Nazis, as well as by politically qualified local candidates. However, of those members of the original staffs who maintained their positions during the war years, a substantial proportion were Nazis by virtue of conviction or expediency. This is evident from the fact that of the approxim ately 1,000 professors and instructors who staffed the universities, 788 (or 79 per cent) were found to be politically implicated and were dismissed in 1945-46. The replacement of Nazis in the college teaching staffs proceeded rapidly, but not without sacrifice to professional standards. The greatest difficulty encountered was in the filling of professorial chairs; 450 such positions were filled by 250 men of instructor rank and by another 200 individuals employed merely on a temporary substitute basis. By the fall of 1947 there was some improvement in this situation; 440 professorial chairs were still inadequately filled, but the number of substitutes had been reduced to 100. The total num ber of appointments had risen from 998 in 1945-46 to 1,047 at the end of 1947. According to Ministry officials, the actual number of college teachers in service since the end of the war has been exactly the number needed.

reports by the Ministry officials, indicate that an adequate staff for the Teacher Training Schools had been recruited by the end of 1947, when the number employed rose to 547 from 528 the previous year and 422 in 194546 (see St. A. Table 70).

Kindergartens and Day-Care Centers

Of all educational institutions in Austria, the kindergartens seem to have suffered most from the ravages of war. In Vienna one-third of the buildings were damaged to a degree that made them unusable; moreover, the remainder were plundered, their equipment (furniture, toilet fixtures, etc.) removed, and the buildings used for various military purposes. Nevertheless, during the period May 1945 to December 1947 there was a substantial increase in the number of kindergartens and day-care centers in Austria (see St. A. Table 61). The day-care centers developed in Austria as an extension of the kindergarten program not only for children under six but also for older children up to the age of fourteen who need supervision after the short school day, because their parents are away and work.

Reopening of Kindergartens in Vienna

The story of the reopening of the public kindergartens in Vienna is one of heroism and sacrifice. At the end of 1947 about one-fourth of the country's kindergarten teachers, of the kindergarten pupils and of the installations were in Vienna (see St. A. Table 62). In March 1945, there were 142 kinder gartens in 126 buildings. In April, following the heavy bombardments of the city, the situation was as follows: 11 Kindergartens completely destroyed. 7 Kindergartens badly damaged and not repairable. 13 Kindergartens badly damaged but repairable. 77 Kindergartens completely robbed of equipment. 12 Kindergartens occupied by military forces. 12 Kindergartens used for other purposes. 10 Kindergartens undamaged and available for use. Even while the fighting was still going on, kindergarten teachers went from door to door begging for supplies and equipment of various kinds in order to re-equip their rooms and get the kindergartens into operation. This was

Teachers in the Teacher Training Schools

As in the case of university teachers, no formal training is prescribed for the men and women who staff the Teacher Training Schools. However, these individuals are chosen from among successful teachers of lower schools, and they have generally had some professional education prior to that service. Again this situation is to a certain extent comparable to that prevailing in the United States, although there an increasing number of instructors in the Teacher Training Schools have had years of professional training at univ ersity schools of education, as well as teaching experience in lower schools. The shortage of teachers also affected the Teacher Training Schools. No figures are available for 194546, and since the Ministry of Education gener ally combines statistics for the Teacher Training Schools with those of the Mittelscbulen figures for the subsequent period show the combined shortage in both types of institutions. Nevertheless, employment data, as well as informal

99

done on their own initiative, for the kindergarten administrator for Vienna was still in a Nazi concentration camp. By May 1945, it was possible to reopen 35 buildings with 53 kindergarten groups (1,098 young children) and five day-care centers with 99 children had been put into operation. By October 1945 there were 91 buildings open with 150 groups (4,450 young children) and 42 day-care centers with 1,077 children. In addition, two "crawling rooms" had been opened for 39 children. By October 1946 the situation was improved further and in 1947 continued progress had been made (see St. A. Table 62). At the end of 1947 all of the completely destroyed buildings had been rebuilt.

of 1947 many of the small individual kitchens in Vienna were closed and central kitchens established from which the food was distributed. In Vienna the number of kitchens decreased from 80 to 21 between October 1945 and December 1947. The kitchen staffs almost invariably have excellent cooks who prepare the food in an appetizing way. Four hundred or more calories per day per child is the standard that has been maintained by Austrian kindergartens; this, of course, is supplemented in varying degrees at home.

Evaluation
In the public kindergartens most of the children are those of working mothers. The teachers in their relations with children consciously try to compensate for the daily separation of parent and child. There is need for more installations to care for children of working mothers and this problem is largely one of securing the necessary buildings. In December 1947, plans were completed for the erection of a new and modern kindergarten building in Vienna for deviate children from funds supplied by Swiss relief organizations. In December 1947,11,000 out of 22,000 children of working mothers in Vienna were in kindergartens.

Organization and Administration

Austrian kindergarten authorities consider small installations with 40 or 50 children superior to large ones with 100 or more children. This point of view guided the establishment of new units financed from public funds after World War I. Almost all the private kindergartens, usually subsidized by the Catholic Church, but sometimes by political parties, were units for one or two groups of children. In the typical kindergarten, the children are brought in the morning by their parents between 6 :30 and 7 A.M. and are called for again anywhere be tween 1 and 6 P.M. The amount paid by the parents in public kindergartens is very small and varies from one and one-half schillings per week in Vienna to one per cent of the parent's salary in Linz (about S 8 per week). Private kindergartens often charge a fee of S 10 per month plus an allowance for food which varies from S 10 to S 20 per month. Exact figures on the proportion of public and private kindergartens in all of Austria are not available. In Vienna in 1947 there were 268 public and approximately 200 private kindergartens. However, elsewhere in Austria the proportion was reversed. In Salzburg the ratio of public to private kindergar tens was only 1 to 5, and in Linz 1 to 2. In rural areas almost all of the kinder gartens are private. Although the number of public kindergartens in all of Austria in December 1947 totaled 854, it is estimated that there were in addition more than 1,200 private installations.

Elementary Schools
School Types
The organization of the educational system in Austria does not provide the very clearly defined line between elementary and secondary schools that is such a fundamental part of educational thinking in the United States. "Compulsory schools" in Austria are designed for children from 6 to 14 years of age; they include the urban Volksschule, for children from 6 to 10 years, followed by the Hauptschule, for children from 10 to 14 years; in rural areas the Volksschule provides training for children from 6 to 14 years; in addition to that there are the Sonderschulen. These three types of schools may properly be considered elementary schools. Of the 775,399 children of compulsory school age, 82 per cent are in the Volksschulen, 14 per cent in the Hauptschulen, and only 3 per cent in the lower Mittelschulen, and 0.7 per cent in Sonder schulen (see Fig. 26).

Feeding Program
After 1945 the problem of feeding was so acute that it became necessary to effect every possible economy in the preparation of food. Toward the end

100

Post-War Problems
During the summer of 1945 the Austrian school authorities were faced Avith the problem of finding housing to replace, throughout the country, the 144 elementary school buildings which had been totally destroyed and to repair another 92 buildings which were seriously damaged. The shortage had been intensified by the requisitioning of 87 school buildings by the armies of occupation. In most cases the problem was met by doubling the use of serviceable buildings; i. e. organizing the pupils into two shifts, one group using the buildings in the mornings and another group in the afternoons. The difficulties in obtaining materials for repairing damaged buildings and con structing new ones, together with the steady increase in enrollment have com pelled the continuation of this practice. In December 1947, approximately one-third of the elementary schools in Austria were operating on a double shift. Although by the end of 1945 almost all children within compulsory age limits were in school, it cannot be said that an effective program was in operation since there was a critical lack of textbooks and other instructional materials. The problem of materials and supplies was especially acute in elementary schools. It was at this level that most of the textbooks had to be banned by the Allies, and here the need for new textbooks was greatest. Accordingly, the first texts to be published after the re-establishment of the Republic in 1945 were for use in elementary schools.

D I S T R I B U T I O N OF SCHOOL CHILDREN DECEMBER 1947

TOTAL (AGE CHILDREN 6-14)

775,399

SPECIAL SCHOOL 5,701-0.7* 6 - 1 4 YEARS OF AGE LOWER MITTELSCHULE 26,862*3.5% 10-14 YEARS OF AGE

PREPARED

BY

U.S.ALLIED

COMMISSION

AUSTRIA

Figure 26

Special Facilities
Although comparative figures are not available, observations and informal reports indicate that conditions in the public elementary schools have gradu ally improved since the end of the war. Approximately one-half of the schools in 1947 had playgrounds while approximately 14 per cent enjoyed the use of a gymnasium. Only less than 10 per cent of the elementary schools had their own kitchens, but more than one-fourth of the schools possessed lunch rooms. For kitchenless schools food was prepared elsewhere and was then delivered to the schools (see St. A. Table 64).

Enrollment
The increase in enrollment in the Volksschulen of more than 22,000 in the school year 194647, does not in itself indicate the magnitude of the problem of congestion that faces Austrian school authorities in the immediate future. This increase has to be viewed in relation to the distribution of the school population. There has been a marked increase in the number of six year-old children entering school for the first time. For example, in Vienna there were in 1947 only 11,597 children nine years of age, but 27,936 children six years of age with the prospect of further increases in the six year group in future years. The problem of congestion is revealed further by the teaching load in various sections of the country. In 1947 the average number of pupils per teacher varied from 61 in Burgenland to 25 in Vienna. The average for all Austria was 41 in the Volksschulen. A desirable average would be 25 or 30 (see St. A. Table 63 including fostnote d)).
7*

Teaching Program and Methods

There was no significant change in curriculum consisting largely of instruction in the 3 R/s and little change in methods of teaching except in the more progressive schools located in Vienna. The Volksschulen in Vienna, which constituted only seven per cent of the total for Austria, re-established the more informal teaching methods used during the pre-Nazi period. These

101

methods included a daily period for conversation (usually one hour), and the arrangement of furniture so that pupils faced the center of the room, thus facilitating discussion. The necessity in 1945 of re-establishing their educational programs gave the Austrian school officials the opportunity to reorganize the curriculum and to modify teaching methods along more modern lines. The fact that they chose to return to the 1937 pattern is, nevertheless, understandable; during the Nazi regime Austrian educators had been almost completely cut off from non-totalitarian countries and had not been able to keep abreast of develop ments taking place in the educational field abroad. At the end of 1947, the assumption that so far as elementary schools were concerned the old program left little if anything to be desired, was still evident. According to the Austrian point of view, the primary function of the elementary school, is still to prepare children for the secondary school, despite the fact that this institution enrolls only a small percentage of all children between the ages of fourteen and eighteen. The dedication of the elementary school program to the Mittelschule is suggestive of the traditional college preparatory program of US high schools which has only in the last ten years been modified on a wide scale to make it a better preparation for life. The methods of instruction in elementary schools conform to the philoso phy of their function. The concept of mental discipline, and the emphasis upon memorization, are determining factors in the background for a rigid, rigorous and rather formal methodology. The impressive results in terms of factual learning are the pride of teacher and parent alike. In contrast with these limitations are several examples of modern school practice that may become points of departure for widespread reforms in the future. In the area of the "three R V , elementary school children in Austria are unquestionably more proficient than their American counterparts. Among the many reasons that may be given for this are the greater amount of time devoted to teaching these skills, the phonetic nature of the German language which greatly simplifies learning to read and spell, and the fact that parents, pupils and teachers view scholastic achievement with uniform seriousness, so that children spend a large proportion of their time outside of school in con centrated study. This seriousness of purpose accounts also for the negligible amount of truancy in Austria. It also explains in large measure the compara tively few cases of non-promotion.

Vocational Guidance
The Austrian public school teachers and administrators do relatively little guidance work. A descriptive form is used by the elementary schools which records the pupil's school achievements, personality attributes, physic al condition, mental status, and vocational interests. This record follows him throughout his elementary career, but does not leave the school. The guidance function is carried on largely by the local public employment offices. Establishment and control of these offices are the responsibility of the Minister of Social Administration. In Vienna this office has 70 employees, 20 of whom are counsellors. The service is organized in three divisions: 1. Vocational guidance (including four psychologists in addition to 20 coun sellors), 2. Placement of apprentices, 3. Placement of unskilled workers. Each counsellor is expected to have a general knowledge of employment opportunities and job requirements,, but, in addition, each has a special field with which he is thoroughly familiar. Close contact is maintained by these men with prospective employers. Each counsellor is assigned a number of schools containing a total of 500 to 600 pupils in the last year of the compulsory school (8th grade of Volks schule or 4th year of Hauptschule). The schools are contacted in the fall of each year to determine the number who will complete the compulsory school the following spring. The schools are required to submit to the employment office a confidential report on each pupil of the graduating class. This re port includes personal and family data and the results of a medical examin ation. During the winter months the counsellors conduct group discussions in the schools with pupils in the 8th grade regarding occupational opportun ities and requirements. The counsellors also meet with the parents of these pupils for similar discussions. Then pupils are invited to the employment of fice for individual interviews, at which time the parents usually accompany their children and participate in the interview. In cases which are complicated by the individual's inability to make an occupational choice or in which the individual's preference seems to be inappropriate, psychological tests are given. This service, however, is made available to only three to four per cent of the fourteen-year-olds counselled by the employment service. The only information which the counsellors have available concerning more than 95 per cent of the youth is that furnished by

102

the schools. It is the plan of the employment office to use psychological testing on a larger scale as the personnel, equipment, and supplies become available.

Vocational Education
Purpose
Vocational Education in Austria, as in other countries, is a part of the total education program. It is important, especially in a country like Austria which has always been famous for its skilled craftsmen and workers, and is anxious to retain this tradition. To do so necessitates providing for her youth not only the opportunity for a broad general education, but also the possibility to obtain specialized vocational training in conformity with individual interests and aptitudes.

Sonderschulen
Types of "Sonderschulen"
For many j^ears before 1938 there were provisions for deviate children in Sonderschulen and the types of these schools (see St. A. Table 65) have re mained unchanged for at least two decades. The tendency in some other countries to establish special schools for exceptionally talented children has not been viewed with enthusiasm by Austrian school officials. They feel that the present Mittelschule obviates the need for such segregation. School officials believed that existing institutions were meeting the need in the city of Vienna but facilities for the children in rural areas were ad mittedly inadequate. Plans were made during the fall of 1947 to establish additional Sonderschulen in certain of the provinces and to set up training centers for teachers in Salzburg, Innsbruck, and Linz to supplement the two in Vienna and Graz.

Continuation Schools
The most frequent type of Vocational School (Berufsschule) is the commun ity-maintained-and-operated Continuation Vocational School. It is espec ially designed to train apprentices in all trade or commercial fields. Persons desiring to become journeymen must serve a three or four year apprenticeship and concurrently attend the Continuation Vocational School one or two days a week, depending on the occupation. There are about 200 Continuation Vocational Schools in all Austria, train ing approximately 75,000 males and 25,000 females (see St. A. Table 66). In Vienna alone there are 36 such schools. One of these schools, in ViennaHiitteldorf, handles nearly 8,000 students per week. The Viennese Continuation Vocational School program offers the following courses of training: Interior Decorator Baker and Confectioner Lathe Operator and Toolmaker Construction Trades Electrical and Radio Engineers Cosmetician Plumber Butcher Window Displayer Graphic Trades (Printer, Typesetter, Lithographer, etc.) Tailor Auto Mechanic Machinist

Enrollment
In 1945 the records of Sonderschulen in the Ministry of Education were com pletely destroyed; therefore the exact changes in enrollment effected by the Nazis are not known. In 193738 there was a total of 6,131 children in these schools, and in 1940 a total of 6,639. By 1945 the number had been reduced to 5,454 but rose again to 6,168 by December, 1947 (see St. A. Table 65).

Curricula
During the period May 1945-December 1947 the only significant change in the curriculum for Sonderschulen was the addition of a course in shorthand for blind children. Both the curriculum and methods of teaching are patterned after those of the elementary and secondary schools. There is no organized and comprehensive program of counselling, placement, and follow-up for the children who pass through the Sonderschulen. This reflects the point of view concerning the function of compulsory schools in Austria, i. e. that the function does not go beyond assuring the mastery of information and skills considered most important for success in the school alone.

103

Watchmaker Dental Technician All Commercial Occupations (Retailer, Salesman, Wholesaler, etc.)

Federal Trade Schools

Full-time continuation schools providing training in the trades, industrial and commercial occupations are under supervision of the Ministry of Educ ation. There are 109 such schools throughout Austria, over half of which are private; the latter have, however, a relatively insignificant enrollment. The Federal Trade Schools operated directly by the Ministry had for the school year 1947 48 an enrollment of 11,594 male an 1,055 female students. Normally two types of programs are carried on in these schools: (a) for those who will serve as tradesmen after two or three years of training, and (b) for those who will be qualified as semi-professional workers after four or five years of training. This flexibility was highly advantageous in the immediate post-war period when special courses could be added without much difficulty. For example, there was great need for construction workers to repair war-damaged buildings. Bricklayers' helpers were pressed into service after only 90 days' intensive training. A student of mechanical or electrical engineering receives considerable in struction in allied subjects, such as forging, bench metal work, cabinetmaking, auto mechanics, and welding. In 1947 the school also trained 60 supervisors for industry who, prior to attending the Trade School, were qualified workers. At the Trade School they receive two years of training to prepare them as factory foremen.

least 17 years of age before entering these schools, but need not have more than an elementary school education. The winter schools are extended over a two year period. The full time schools offer a one year program except one in Upper Austria, which began operating on a two year full time basis in 1947. . Four specialized schools are operated directly by the Ministry of Agriculture: 1. A four year program for boys in general agriculture for 180 students. 2. A three year program for boys and girls in wine growing, fruit growing, and gardening for 160 students. 3. A three year program for boys in mountain agriculture for 40 students. 4. A three year program for girls in agriculture and home economics for 90 students. From the American point of view admission requirements are unusual in that work experience is demanded before entrance. The enrollee must have completed elementary school and two years of work experience. In addition, the Agricultural Chamber in each Land operates agricultural extension courses. The courses consist of 150 hours of instruction, 612 hours weekly. In these courses general education is provided by the elemen tary school teachers and the technical instruction in agriculture is given by travelling specialists. During the current year there were about 500 such courses serving nearly 10,000 youths and adults.

Conclusion
On the whole, the Vocational Section of the Austrian Ministry of Educ ation and local school authorities have done well in reconstructing their program for vocational training. Only 60,412 pupils were enrolled in the Pub lic Vocational Schools in 194546. This number increased to 104,621 by the end of 1947. In spite of this considerable increase, the number of pupils per teacher was held to 32.9, a noteworthy achievement in itself.

Training in Agriculture
All Austrian agricultural education is under the supervision of the Minis try of Agriculture except in two important instances: i.e., the agricultural and veterinary colleges. The latter colleges which have the status of a university are located in Vienna and are under the supervision of the Ministry of Education. There are approximately 60 lower Agricultural Schools located in the Laen der. These schools are operated by the Agricultural Chambers of the Land governments, subject to control and supervision by the Federal Ministry of Agriculture. They provide training for 3,000 to 4,000 youths and are of two types: (1) winter schools, and (2) full-time schools. Students must be at

Secondary Education
Purpose
Secondary education in Austria, as in many European countries, is designed for a highly selected group of pupils between the ages of ten and eighteen. The traditional function of this schooling is conceived to be the preparation of

104

youth for further study in the colleges and universities. To this end students pursue a rigorous course of academic and scientific studies, which are consid ered prerequisite to the achievement, in the post-secondary period, of intellec tual maturity and professional competence. A tuition fee is required even in the public secondary schools, except in case of financial need of the pupil.

Enrollment and School Facilities

There were in 1947/48 in Austria 48,302 pupils enrolled in 162 Mittel schulen or secondary schools. There were 3,440 teachers in these schools, making a teacher-pupil ratio of 1 14 (see St. A. Table 67). Most educational administrators in the United States feel that a teacherpupil ratio of 128 or 130 is satisfactory. Many states apportion their financial aid toward local school districts on the proportion of 130 in an attempt to stimulate local efforts to attain that ratio. This comparison shows that the Austrian teacher "load", on the average, is lighter than that found in American communities. Compared to the American school teacher, whose extracurricular activities are very varied, the Austrian teacher "load" in the Mittelschulen may be regarded as light indeed.

Curricula
The Mittelschule curricula in Austria are of four main types: Gymnasien, Realgymnasien, Realschulen, and Frauenoberschulen. The Realgymnasien have the greatest pupil enrollment: a total membership of 31,319 in 89 schools in 1947/48 (see Table 68). The course of studies offered in the Gymnasien, Realgymnasien, and Real schulen is essentially similar, only the emphasis changes. The Gymnasien require the study of Greek and Latin. The Realgymnasien require only Latin, one modern language being substituted for Greek. The Realschule places more emphasis upon natural and physical sciences and mathematics, and substitute modern languages for both the Greek and the Latin. The Frauenoberschule curriculum provides the least amount of work in the natural sciences and requires instead a number of courses in Home Economics and Child Care (see St. A. Table 69). The curricula for Austrian Mittelschulen are laid down by the Federal Min istry and are the same for all Laender. Provision for modifications and adaptations of programs of studies to fit local needs, such as are found in most state programs in the United States, is not characteristic of the Austrian

curricula. This standardization is defended by leaders in Austrian education with the argument that the Mittelschule program is designed essentially to prepare students for university. Secondary school training with diverse curricular offerings to meet the needs of all youth in achieving intellectual maturity is not yet the aim of the Mittelschule. Undeniably, the Mittelschule pupil is much better grounded in the humanities than is the average American high school student. The average American high school student, however, closely approximates the average American adolescent in mental ability and academic aptitude. On the other hand, the Austrian secondary school student is a product of considerable selection and is not representative of the average Austrian youth. The academic load of the Austrian secondary school student is heavy. Contrasting the schedule of a 15-year-old Gymnasium pupil with that of an American high school freshman will illustrate this fact. The former's sched ule is almost one hundred per cent academic, physical education being the single exception. The latter, however, devotes no more than 70 per cent of his school day to "solid" courses. Whereas the Austrian boy devotes 11 out of 33 weekly school hours to Latin and Greek, these subjects are seldom included in the American high school boy's schedule. The American boy engages in citizenship studies and projects, shop work, and extracurricular activities, courses not found in the program of the 15-year-old Austrian Gymnasium student. Supervision of Mittelschule instruction is largely inspectorial, inspectors are appointed by the Federal Ministry.

Conclusions
At the end of 1947, of 64,923 fourteen-year-old pupils enrolled in the schools of Austria only 5,975 were in the 4th class of the Mittelschulen. Thus only about ten per cent of fourteen-year-old pupils approximately were likely to continue their academic schooling beyond this point. In Vienna, the proportion was somewhat higher; of 8,450 fourteen-year-old pupils enrolled in school, 2,173, (approximately 25%) were in the 4th class of the Mittelschule. . In the United States, more than 91 % of elementary school graduates enroll in high school and have the opportunity to continue their education into college. Of course, in the United States where the goal is education for all youth, school attendance beyond the age of fourteen is compulsory. In Austria, the school structure is such that the large majority of the children

105

attend the Hauptschule where they will terminate their general education at the age of fourteen. Indeed, completion of schooling at this early age remains the decision of parents who feel that the family budget must be supplemented by the child's earnings in immediate apprenticeships and employment. Intelligent and ambitious children from any socio-economic level, whose parents are willing to sacrifice, do have the door open to them for advanced secondary education.

The largest of these institutions, the University of Vienna, which is almost 600 years old, offers a traditionally comprehensive program of studies in the humanities and sciences. Professional curricula are also available in medicine, dentistry, pharmacy, law, and theology. Similar scope characterizes the course of studies in the provincial universities of Graz and Innsbruck.

Post-War Curricula
After the war in 1945, institutions of higher education reintroduced the curricula and courses of study in effect before the Nazi occupation, insofar as available facilities and personnel permitted. No basic changes have been made in the character of these programs. A minor innovation was initiated by the University of Vienna in opening certain technical and pro fessional courses (without credit) to experienced tradesmen, technicians, and other specialized workers. Under the terms of a special bequest the Agric ultural College reopened a school offering a four year course in the art of beer brewing; this school had been a private venture, and its closing in 1920 enabled Germany to develop a unique monopoly in this field. Of more im portance probably, all three Austrian universities have established institutes for the training of interpreters, for whom there is a growing demand in the modern international world.

Institutions of Higher Education

Scope of Program
Institutions of higher education in Austria consist of three universities and ten specialized colleges and academies. The names and locations indicating the areas of professional training, and the locations of these institutions are as follows: In Vienna: University of Vienna
College of Technology of Vienna
Veterinary College of Vienna
Agricultural College of Vienna
College of Business Administration of Vienna
Academy of Fine Arts of Vienna
Academy of Music and Dramatic Art of Vienna
Academy for Applied Art of Vienna

In Salzburg:

Control
Shortly after the Soviet army entered Vienna in April 1945, the Provisional Government was permitted to take over the administration of educational institutions including colleges and universities. The immediate aim of the authorities was to eradicate Nazi ideology and personnel; this objective was embodied in a federal decree dated 28 May 1945 voiding all university regul ations which had been issued by the Germans. As a basis for reorganization it was decided to reintroduce the constitution and rules in effect on 13 March 1938. Laws to this effect were passed in May and September 1945. The Provisional Government, however, was able to exercise little authority outside Vienna. The Universities of Graz and Innsbruck and the three other provincial colleges came under the control of the British, French, and Americ an military governments. For this reason uniform policies relating to higher institutions could not be achieved until after the national elections of No vember 1945. In 1946 and 1947 the government, through the Ministry of Education, gradually reasserted its power over the colleges and universities. Important contributions to this achievement were made by the Control

Theological Faculty of Salzburg In Styria: University of Graz College of Technology of Graz Mining College of Leoben
In Tyrol:

University of Innsbruck

106

Agreement of 26 June 1946, which set very narrow limits on the power of the Allies to interfere in the universities, and by the National Socialist law of 1947 which provided a general solution and almost complete liquidation of the denazification problem. By the end of 1947 the Ministry had consolidated its position and was exercising authority much as it did in pre-AnschluB Austria. The Ministry's control of colleges and universities is expressed through its authority to promulgate their constitutions as well as those of the students associations. The Ministry does not formulate collegiate courses of study. It does, however, determine the requirements for degrees. Through its financial control of budgets the Ministry also regulates the scope and charac ter of each institution's program, and through its veto power over faculty ap pointments, the Ministry has a voice in setting personnel policies. Despite these comprehensive controls which could lend themselves readily to the establishment of an autocracy, certain salutary features are neverthe less present. Indeed, in some respects Austrian institutions of higher educ ation are more democratically governed than are those in the United States, in which the president or chancellor, appointed for indefinite tenure, fre quently has the power to inhibit the academic freedom of professors whose philosophies and utterances are not subscribed to by influential individuals upon whom the institutions rely for financial support. In Austrian institut ions the chancellor (Rektor) is elected annually by the various faculties. He receives only a small stipend in addition to his regular salary. Usually only an outstanding scholar attains the honor of this selection, and it is prestige rather than financial reward which compensates him for the burden of ad ministrative duties. Inasmuch as the chancellor is elected by his own colleagues, he usually receives their friendly cooperation, and in turn he is very respon sive to the demands of the faculties. This relationship reduces greatly the gap in understanding, interests, and purposes which often separates American faculties from the administrative heads whose tenure usually depends upon money-raising and executive ability. Moreover, in the United States the deans of the various schools or colleges within a university are generally appointed by the president. In Austria, the democratic practice prevails of having the faculties elect the dean to a one-year term of office.

reported enrollments in 1945-46 to be greater than in any pre-war year (see St. A. Table 72). Further increases took place in 1946 and 1947. Matricul ation in professional schools and curricula has been especially great, often taxing and surpassing the capacity of institutions and facilities. Nevertheless, no admission quotas have been set, in accordance with the time-honored trad ition of admitting any student possessing the scholastic requisites of a Mit
telschule diploma.

Two main causes account for the marked rise in university enrollments. Since 1938 the young men who would normally have continued their studies were diverted into military service. Many of these man are now back in school. Moreover, tuition costs practically nothing. Fees have remained fairly con stant since pre-war days. The heavy enrollments have given rise to the fear that within a few years Austria will have an over-supply of university-trained professionals. The problem has been the subject of considerable discussion in the government and in various sectors of Austrian society. But the tradition of free admission to higher education is so strong that no one has been willing thus far to accept a formula for restricting enrollments. The solution of the problem cannot be foreseen at present.

Material Lacks of Students

By the end of 1947 many classrooms at the universities were still unheated. Textbooks were often non-existent because acceptable manuscripts in many instances had not yet been prepared, and publication difficulties further retarded the availability of such materials. Students depended largely upon lecture notes for study purposes. The overall picture at the end of 1947 was still bleak despite a gradual improvement in the situation since the middle of 1945. Some material aid had been given by various countries. A thorough going solution remained to be found in a re-invigorated Austrian economy.

Teaching and Research Facilities

Some conception of the war damages and destruction suffered by Austrian higher educational establishments may be gained from an official report of the University of Vienna. In its main building: 11% of its floor space was de stroyed, 18% heavily damaged. The roof was 65% destroyed, and all glass was shattered. Most of the windows and doors were heavily damaged. Gas, light, heating, and telephone facilities were seriously disrupted. Whole sections of

Enrollments
Despite the considerable destruction of classroom, laboratory and other facilities and the loss of teacher personnel, all institutions of higher education

107

some buildings were obliterated; others suffered relatively little. Repair work was hampered by lack of material but the most essential work could be undertaken. Students contributed about 1600 working days to the recon struction. By July 1947 repair expenditures had totaled S 1,500,000. In buildings containing laboratories and libraries substantial damage was also suffered, resulting in loss of valuable facilities and equipment for ex perimental and bibliographical research. Although a great deal of laboratory equipment had been evacuated to places considered "safe," much of it was dam aged in transit, or was lost or stolen. Other equipment had been removed to Germany by the German Government and only a portion of it could be identified and reclaimed. Important restitutions were made in 1946 and 1947, largely through the efforts of the American and British Elements. Similarly with libraries which had been evacuated or "borrowed/' thousands of valuable volumes had disappeared. Nevertheless, parts of these libraries were found and returned in 1946 but only in the winter of 1946 47 could work be gin of recataloguing and bringing the books of these libraries into some order.

Finances
Austrian universities and colleges are state-supported institutions. Since the dissolution of the monarchy only a negligible amount of their income has been derived from wealthy private philanthropists. But in 1945 there was no organized state to render support, and the universities shifted for them selves, deriving such meager funds as they could from the Land govern ments. The first post-war budget, for the school year 194647, provided a total of S 20,325,700. Of this sum 73% was allocated for salaries, and the remainder for supplies and maintenance. (Expenditures for repairs caused by war damage came from other funds.) In 1947, the total had increased by some 15%, but the proportionate allocations for salaries and maintenance had remained practically the same. The increased budget for 1947 repres ented no real provision for increased expenditures; it reflected moderate concessions to constantly rising prices and costs of services (see St. A. Table 71). A most significant aspect of the budgetary picture is the extreme modesty of the financial support for higher education. Even in pre-war years, when Austria had a moderately well-to-do economy, the universities considered themselves poor. By American standards they were very poor. In 1938 the total budget for 13 institutions amounted roughly to some four and a half or five million dollars. After allowing for the fact that in the 1930's the

schilling had a purchasing power in Austria approximately three times as much as its dollar equivalent in the United States, it is still clear that the total expenditures for higher education were ver,y meagre even before World War II. American budgets for institutions with enrollments comp arable to those in Austria are approximately ten times as large. Perhaps the most striking consequence of this poverty, which has drastic ally limited the funds available for laboratory equipment and experimentation, has been the resultant emphasis on theory, at the expense, perhaps, of research. More accurately, the research which has been done has necessarily been of a basic type requiring, as a rule, very little costly equipment. That this limitation has not been entirely disadvantageous to Austria's intellectual prowess is suggested by the fact that it can boast of nine Nobel prize winners, a per capita number which is not exceeded by any other nation in the world. Nevertheless, for modern scientific research, the necessary equipment is be coming more and more expensive. There is no gainsaying the crying need of Austrian universities for extensive additions to their laboratory resources. Whether the colleges and universities will receive the financial subsidies re quired for this purpose depends upon the degree to which a healthy economy may develop in the years ahead.

Denazification
The problem of denazification was complicated in the early stages of the occupation period by the inability of the Allies to accept a common policy until agreement on a National-Socialist Law was reached in February 1947. This law essentially confirmed the measures which had already been taken by the Austrian authorities on their own initiative, and by the Allies in their respective zones. The law permitted nominal or so-called "less-implicated" Nazis to retain their positions if no equally-well qualified individuals were found to replace them. Despite the acceptance of this practice, colleges and universities throughout Austria had generally found it necessary to dismiss a majority of their faculties. Replacements were made quite rapidly in 1946 and 1947, although these men did not as a rule possess the scholastic attainments of their predecessors. Moreover, relatively few of the professors who fled from Austria before 1938 have chosen to return, although all had been invited by the government to do so. Unsettled conditions in this country, bitter memories, the greater attractiveness of positions abroad, and a natural reluctance to pull up roots again in the countries of refuge, are understandable reasons for this behavior.

108

Some vacancies have been especially difficult to fill and still remained open at the end of 1947. For example, the important chair of English at the University of Vienna had no occupant during this period. It is very signif icant that the greatest gaps existed at the levels of associate and assistant professors the age group of 3045 roughly which were particularly hard hit by denazification measures. The resources in research and teaching ability of this group were sorely missed. Students, too, have been affected by denazification. Indeed, one category has received harsher treatment than that given to professors. In accord with the Denazification Law of 1947 all who were members of the National Socia list Party (NSDAP) are automatically excluded from the universities. In summary it may be said that the problem of denazification had been satisfactorily resolved during the period. Some injustices had been done to individuals as is almost inevitable in the administration of a sweeping mea sure of this type. Ministerial amnesties and lenient interpretations served, however, to assuage the effects of the drastic law. There was little evidence of resurgent Nazism among professors or students, nor was there any significant amount of Communist or other radical agitation. Several Communist-inspired incidents did take place at the time of the Student Council elections in 1946, but the small percentage of Communists among the students seemed to have lost rather than gained influence as a result. By far the greater majority of students (estimated at 80% by the British Element) displayed a rather passive attitude toward national politics, and apparently desired nothing more than the opportunity to continue their studies without political distraction.

To this end, high priorities have been given to projects such as the inter national exchange of university personnel; the establishment by several nations of cultural centers, libraries and other related enterprises in Austria; the compilation of biographies of significant literature published outside of Austria since 1938; and the successful arrangements for making available in Austrian bookshops at moderate prices many of the most important recent books and current journals printed in other countries.

Youth Activities
Background
Ever since World War I a large portion of Austrian Youth have been organized into groups sponsored by the dominant religious, political, and labor elements. The various youth organizations enjoyed a period of free and uninhibited growth until 1934, when the Christian Socialist government of Chancellor Dollfuss outlawed the National Socialist and the Social Democ ratic parties and their youth organizations. The youth movement of the Socialist-dominated Trade Unions was also suppressed. The forbidden youth movements followed the example of their parent organizations and carried on as best they could "underground" until such time as they could again work openly. From 1934 to 1938 all of the Austrian youth between the ages of 8 to 14 were compelled to belong to the "Fatherland Young Folk," (Vaterland Jung volk), which was sponsored by the government. Although the religious groups and the Scouts were permitted to retain their autonomy, they were compelled to affiliate themselves with the "Fatherland Young Folk."

Resumption of Old Ties

From 1938 to 1945 Austrian colleges and universities existed under a Naziimposed system, and they were practically cut off from all intercourse with the scientific, technological, and professional circles of the Western World. As a result, many technical, scientific and professional discoveries and studies were unknown in Austria in 1945. The re-establishment of a mutual exchange of learning and research among universities and learned institutions of all nations has been an objective of prime importance in the rehabilitation of cultural and scientific life, not only in Austria, but the world over. Educational authorities of the Western Elements, as well as representatives of such countries as Switzerland, Sweden, and Denmark, have made immense efforts to re-establish the intercourse with Austria, while the Austrians themselves have not lagged behind.

Hitler Youth
In 1938, the German youth leaders were ready to replace the loosely-knit, flexible "Fatherland Young Folk" with the highly centralized, tightly-knit "Hitler Youth" and "Bund of German Girls" (Bund deutscher Maedchen). They exploited to the full the youths' love for sports, nature, singing, and hiking, as well as their need for social life. Taking advantage of the precedent by the Dollfuss regime in establishing a state youth movement in Austria, the Nazis easily incorporated the Austrian youth into the compulsory youth

109

movement of the Third Reich. Once this was accomplished, it was easy for the Nazis to instill into the young their own ideologies. To appreciate the dilemma of Austrian youth, one must recall that, on the one hand, all non-Nazi youth movements were banned, on the other, that who ever joined the Hitler youth movement found the door open to opportunity in all walks of life. As time went on, the popularity of the Hitler Youth Movement began to wane, especially when it took on a military character and began to interfere seriously with the school program and keep the youth away from home. However, by exerting various pressures the Nazis were able to maintain their grip on the youth. It is estimated that by 1945, almost 100/0 of the boys were members of the Hitler Youth and about 90/0 of the girls were in the "Bund of German Girls."

1945 a Youth Section was created within the Ministry of Education. Neverthe less, because of the great influence of the political, religious, and labor youth groups, it can be expected that the goyernment will not exercise a leading role in the area of youth activities.

Austrian Youth Organizations

a) Religious The first organization to recover its former influence and power was the Catholic Youth Organization. After 1938 the Catholic Church had been forced to limit its youth program to strictly spiritual matters, but it had been permitted to retain its form and structure. The Catholic Youth are organized according to age and sex with additional groups existing for students, laborers, and farm youth. The leadership is in the hands of elected laymen with the clergy serving in an advisory capacity. As of the end of 1947, the Catholic Youth numbered 130,000 members and was by far the largest youth organization in Austria. The Protestant Youth are small in number, totaling not more than 3,000. This movement is bound closely to the parent church and carries on regular meetings, Bible studies, discussions, and recreational programs. b) Political
Socialist

Post-War Period
In May 1945, Austrian youth found themselves leaderless, confused, and disillusioned. In the months that followed, many of the youth became mem bers of the revived political and religious youth movements, but the majority held back from affiliation with any of the youth groups. It will be the task of the youth-serving agencies to overcome this understandable negative attitude of the majority toward organized youth groups. Widespread disillusionment exists among the youth who had faith in the bright future promised by the Nazis, and who now are sceptical and apathetic toward politics in any form. There is a dislike and distrust of Communism which first had been fostered by the Nazis but has grown much stronger since the entry of the Red Army into Austria. The aftermath of a lost war, moreover, brought a loosening of moral restraints which manifested itself in a great temporary post-war increase in juvenile delinquency, venereal disease incidence, and black market activities. There is also a feeling of insecurity in the minds of those youth who, because of the war, had no opportunity to learn a craft or a trade and are now having great difficulties in finding a place.

Austrian Youth and the State

Aware of the unfortunate experience of the Dollfuss and Nazi regimes, the present Austrian Government has been very cautious about any participation in youth affairs. Nonetheless, the government has realized its responsibilities for the rehabilitation, and re-education of its youth and in the summer of

The youth organizations sponsored by the Socialist Party, which had been driven "underground" in 1934, reemerged immediately after the fall of the Nazi regime in March 1945. Although suffering from losses in leadership and facilities, they immediately proceeded to reorganize. As the major youth organization of the working classes of Austria, the Socialist Youth exert a great deal of influence. Leadership schools, training materials, magazi nes, and a bi-weekly newspaper are the means of informing the membership and training the leaders. Weekly gatherings in each neighborhood district provide opportunities for social experiences and for disseminating and inter preting socialist philosophy. The Socialists encourage coeducational activities among all of their youth groups and hold huge youth demonstrations semi annually. The Austrian Socialist youth are very active in international affairs and occupy many positions of leadership in European and World Socialist Youth Associations. The Socialist Party sponsors the "Socialist Youth" whose members range in age from 14 to 21 and number approximately 30,000, the "Red Falcons" (RoteFalken) who are made up of the 10 to 14 age group and

110

number around 10,000, and the Childrens Friends (Kinderfreunde) with a membership of about 17,000 children between the ages of 6 to 10. This latter organization maintains kindergartens and day schools for the benefit of working mothers and carries on an extensive educational program among the parents to inform them particularly about child care, school reforms, and political affairs. Communist The "Free Austrian Youth" (Freie Oesterreichische Jugend) was founded on 16 May, 1945. A few months earlier the (then underground) Communist Party of Austria had renounced the formation of a party youth organization. Instead, the Communist Party called upon its youthful members to form a new youth organization that would include youth of all classes and con fessions. At first the new organization grew rapidly and by the end of 1945 the membership had reached 50,000, but as the non-Communist youth realized that they were in a Communist organization and as the other youth groups established themselves, many members left the ranks of the "Free Austrian Youth/* At the end of 1947 the membership of this organization was stabilized at about 20,000. Although small in number, it has been very active on a national and an international scale. The "Free Austrian Youth" has consist ently followed the Communist Party line in its attacks on United States policies and criticisms of the American way of life. Like the Socialists, the Communists maintain a small children's organiz ation, "Childrens Land" (Kinderland), which cares for the children of workingclass mothers, and has some 23,000 members. It includes an organization for the 10-to-14 age group called the "Young Guard" (Junge Garde). Although many of the youth in these organizations are not Communist-minded, the leadership is iron-clad. The People's Party The "Austrian Youth Movement" (Oesterreichische Jugend-Bewegung), the youth organization of the People's Party, was founded on 23 September 1945 in Salzburg. The membership of this organization is divided into three age groups. The first classification is those from 6 to 14 years of age. These chil dren receive no political training but may attend supervised activities of a recreational nature. The second age group includes those between the ages of 14 to 18 years. In addition to the usual recreational and social activities, this group receives instruction about the various political ideologies. After the individual is 18 years old he becomes a member of the senior organization

and receives a political education according to the doctrines of the People's Party. The youth of the "Austrian Youth Movement" total around 40,000 and are drawn largely from the rural areas where the strength of the People's Party is greatest. Trade Unions The "Trade Union Youth" organization is a part of the Austrian Trade Union Federation. A youth of 14 to 18 years automatically becomes a member of this group upon being gainfully employed in any one of the 16 crafts which combine to form the Austrian Trade Union Fedaration. Most of its leaders and many of its members are Socialist. This large group of 41,000 is supported by funds from the parent organization, and its leaders are attempting to help satisfy through new legislation the social and economic needs of the working youth and to educate them in the ideology of the labor movement. A "Youth Care Service" (Jugendfuersorgeaktion) has been established to provide for the immediate needs of the young workers. The "Youth Care Service" offers educational courses, provides free health clinics, and maintains a net of 9 convalescent homes throughout Austria where the most undernourished youth can enjoy a four week period of rest and recreation. During the sum mer of 1947, these institutions cared for 6,805 needy boys and girls. c) Non-Political : The Scouts The scouting movement in Austria has made slow but steady progress since the end of the war. The Austrian Scouts were banned by Hitler in 1938 and suffered the loss of all their equipment and facilities. In 1945 the two former sections (Catholic and Protestant) merged into a single Austrian Scout Movement. Through their own efforts and with the help of equip ment and supplies from United States Boy Scouts, the Austrian Boy Scouts have grown to 5,500 members. The Austrian Girl Scouts were never so well established as their brother scouts but have revived their organization and have about 800 members (se Fig. 27 and St. A. Table 73).

The Role of the Allied Elements

During the fall of 1945 and at various times thereafter the question of responsibility of the Quadripartite Education Directorate for youth groups and informal educational programs for out-of-school youth was discussed.

Ill

MEMBERSHIP IN YOUTH MOVEMENTS1947

(EACH FIGURE REPRESENTS 5,000 MEMBERS)

CATHOLIC YOUTH

VIENNA: 20,000 ALL AUSTRIA: 130.000

BOY SCOUTS

VIENNA: ALL AUSTRIA:

2,125 6,200

TRADE UNION YOUTH

VIENNA: ALL AUSTRIA:

22,500 4 1,770

AUSTRIAN YOUTH MOVEMENT

VIENNA: ALL AUSTRIA:

3,500 40.000

SOCIALIST YOUTH

VIENNA: ALL AUSTRIA:

5,000 30,000

KINDERFREUNDE

VIENNA: ALL AUSTRIA:

8,997 27,868

KINDERLAND
ALL AUSTRIA (EXCLUDING VIENNA) VIENNA
PREPARED BY U.S. ALLIED COMMISSION AUSTRIA

VIENNA: ALL AUSTRIA

10,000 23.000

FREE AUSTRIAN YOUTH

VIENNA ALL AUSTRIA:

6,000 20,000

As it became obvious during 1946 that it was impossible to agree on any quad ripartite policy on the subject, the various elements began to treat the youth movements on a unilateral basis. The Soviet Element has had no one charged directly with youth affairs. During the first few months following the Soviet entry into Vienna it fur nished considerable aid towards the establishment of the "Free Austrian Youth", but since that time it has apparently neither helped nor hindered the youth movements within its zone. The British Element does not have a youth officer. Except for a limited amount of assistance given to the scouting movement in their zone, the Brit ish have not concerned themselves with Austrian youth. Their announced po licy is one of "vigilant laissez faire." The French Element has maintained youth officers in Vienna and Inns bruck. The French High Commissioner has shown a great deal of personal interest in Austrian youth and has granted them considerable assistance. The main contribution of the French has been their sponsorship of inter national summer and winter camps in Tyrol. At these camps, all Austrian youth organizations may send representatives to be the guests and comrades of their French counterparts. The US Element began to assist actively in the rehabilitation of Austrian youth in 1947. US officers and US civilian youth specialists were assigned to full time duties in Vienna, Linz and Salzburg. The Austrian Youth Activities (AYA) officers were charged with the development and coordination of the youth assistance programs of subordinate units in their respective areas while the civilian youth specialists were assigned primary responsibility for working directly with the Austrian youth and Austrian youth-serving agencies. Although effectiveness of the work of the various subordinate units has varied, the cumulative accomplishments of these units are impressive in the amount of aid rendered and the numbers of young people aided. The units have usually granted assistance to Austrian youth and youth organizations by donating books, magazines and games; by sharing equipment and facilities; and by providing transportation for cultural excursions and recreational outings. Among the larger projects has been the assistance given to Austrian youth for summer camps and for the establishment of public youth centers. During the summer of 1947, US army assistance in the form of camping equipment and food made it possible for 10,000 young people to enjoy a su mmer camping period. Youth centers have been set -up in Vienna, Linz,

Figure 27

112

and Wels; these are open to all youth and offer supervised activities of a recre ational, vocational, and educational nature.

Conclusions
Ultimately, however, the problem of rehabilitating and reeducating Austrian youth is one that must be solved by the Austrian people themselves. The immediate problem is not to make the Austrian youth forget the Hitler Youth movement, but rather to use the resources which Austria possesses to satisfy the legitimate needs of Austrian youth and, at the same time, draw the youth closer to his home, his school, and his church.

of 1947, the number had increased to 15. A new observatory was built to replace the Urania observatory which had been destroyed during the war and a new biological station was added in order to increase the facilities of the movement.

Organization and Administration

The various adult education agencies operate autonomously as educational institutions, but their activities are guided by committees which coordinate the elements in their programs. Vital questions are decided by a Board of Direc tors (Zentralvorstand), formed of the agency presidents. Chief policy-making and adminstrative body is the Directorate (Direktorium), composed of the directors of the various groups under chairmanship of the secretary-general of the Vienna Adult Eeducation Aassociation. The secretary-general executes decisions of the Board of Directors and the Directorate. Coordination of the work of the adult education schools with other adult education instrumentalities such as the municipal libraries and Radio Vienna is achieved through the Executive. Committee. Consisting of representatives of each of these groups, this body meets when occasion demands.

Adult Education
Origin
Adult education was an integral part of daily life in pre-Anschluss Austria. The first adult education agency was founded in 1885 in Krems, Lower Austria. Two years later it moved to Vienna and since then the capital has been the heart of the movement.

Finances
The "Society of the Friends of Culture" (Gesellschaft der Bildungsfreunde) exercises financial authority for Vienna's adult education program. Under a city councilman's chairmanship, the group includes representatives of "Cul ture and Popular Education Committee of the City of Vienna," the Trade Union Association, and the Chamber of Labor. Although educationally and culturally of inestimable value, adult educ ation has never been a paying proposition and the City of Vienna has found it consistently necessary to support the movement with municipal funds. Since 1945 the adult education groups have been especially hard pressed by high costs of reconstruction and modernization of buildings and equipment, continued salary scale rises for personnel, and the revocation by the City Council of tax exemption privileges enjoyed by the movement from its incep tion in 1887 in Vienna until 1938. Principal revenue sources are tuition, lecture, and film admission fees. Mun icipal grants and contributions from various labor organizations, including the Chamber of Labor, combine with these to balance the budget.

Effects of National Socialism

During the German occupation of 19381945 adult education became com pletely regimented and the fundamental educational values were neglected. The Nazis incorporated all adult education agencies into the "Strength Through Joy" (Kraft durch Freude) organization, where it was completely subjugated to the ideological purposes of National Socialism.

Post-War Revival
As soon as the Vienna city administration was able to resume its functions after the end of hostilities in 1945, a beginning was made in the reestablishment of adult education. The City Council directed two former outstanding leaders in the field to reorganize the adult education schools (Volkshochschulen). The world-famed Urania school was opened to the public before the end of 1945 and by July 1946, ten more people's colleges were in operation. By the end

113

Programs, Institutions, and Techniques

The Viennese adult education schools offer a rich and varied program of courses on American high school, junior college, and full college levels. These latter courses are conducted in university extension courses and study cir cles led by university instructors. The wide range of courses offered before the end of 1947 can be illustrated best by an enummeration of broad subject titles: Philosophy; Natural Sciences (with special emphasis upon chemistry and mathematics); Medicine; Psy chology, (including introduction to latest psychological theories and tech niques, child psychology, etc.); Arts, (appreciation and practical); History; Political Science; German Language and Literature; Foreign Languages and Literature; Home Economics; and Vocational Training. Highly significant for an understanding of post-war trends of Austrian adult education is a glance at the titles of the most popular courses. Those featuring presentation of political themes and current history ran far behind those teaching practical arts applicable to physical reconstruction, such as shoemaking and masonry. Also popular were courses in theoretical philoso phy, world philosophy (Weltanschauung), and psychology, indicative of the search during troubled times for philosophical norms. Among the foreign languages first place was held by English, with French and Russian a poor second and third respectively. One valuable feature of adult education school curricula has been the youth advisory service, which provides advice to youthful course participants in the choice of a study program, and if desired, a career. Teaching techniques include all recognised modern aides, such as films, stage plays, musical programs, conducted visits to exhibitions and museums, and excursions to points of historical interest. Moreover the municipal libraries are at the disposal of all participants. The growing program popularity may be judged by a comparison of the following attendance figures for 1946 and 1947: a) Regular class attendance remained fairly constant, dropping slightly from 16,124 to 15,198. b) Lecture attendance increased from 27,090 to 48,518. c) Cinema patronage increased from 173,092 to 307,936. d) Attendance at musical and dramatical performances increased from 31,416 to 41,155. e) Attendance at exhibitions and excursions rose from 1,115 to 2,590.

Overall increase in the attendance from 1946 to 1947 was from 248,834 to 416,117, these figures demonstrate the significance and popularity of the program.

Post-War Innovations
After 1945 there were a number of innovations in the curricula of the people's colleges. A series of courses treating Austria's national status and describing her literature, music, science, fine arts, education, and her role in world affairs as a free and independent state was introduced. A large selection of courses and lectures dealing with the languages and cultures of foreign countries was also added. The object of these course alterations was two fold: political reorientation away from National Socialism, and modernization of content and presen tation techniques. One unique post-war development has been the introduction of the radio as a media of adult education; it brings news of adult educational activities as well as courses to rural areas and cities alike.

Allied Contributions
Since 1945, a number of international societies have been founded for the purpose of reneAving Austrian contacts with foreign countries and of strengthen ing existing educational and cultural ties. In their effort to foster and spread an appreciation of foreign cultures, these societies have worked largely through the adult education institutions. The French Information Center has supplied the libraries, reading rooms, and classes with books, magazines, and newspapers from France and donated a large supply of modern scientific and literary works valued at Frs. 225,000. The Austro-British Society and the British Council maintained close relat ions with the adult education movement. During the summer of 1947, the Austro-British Society sponsored a seminar in England at which Austrian and British leaders in popular education discussed current needs and problems. This society has also subsidized many of the courses dealing with the language and literature of England. The Society for Fostering Cultural and Economic Relations with the Soviet Union (Gesellschaft zur Pflege der kulturellen und wirtschaftlichen Beziehungen zur Sowjetunion) offered a series of courses entitled "A Country Gives Infor

114

mation," in the Russian language. The Russian Academy organized within the adult education schools a series of courses in the Russian language dealing with the social, economic, and cultural life in the Soviet Union. The United States Element has donated a series of books about America for use in the classes and libraries of the Volkshochschulen.

authorities were instructed to deposit all Nazi-printed materials in central locations so that they could be pulped. Each one of the purges had been more severe and complete than the preceding one. When the second Austrian Repub lic was re-established in 1945, the Austrian school officials and the four occupying powers were faced with the gigantic task of supplying an almost complete set of schoolbooks to more than one million children of school age.

Adult Education in the Laender

Although the first adult education agency was developed in Krems, Lower Austria, in 1885, the spread of the movement into the Laender has been very slow. By the end of 1947, there were only three such institutions operating outside of Viennain Graz, Linz, and Salzburg. The school in Graz reopened shortly after the end of the war; the one in Linz was established in 1946 and achieved an enrollment in less than two years of 3,300 members. The Salz burg institution was founded in September 1947.

Agencies of Control
The Education Directorate of the Allied Commission for Austria was charged with the primary responsibility for the re-establishment of educational programs. One of the first problems to receive the attention of this group was the production of textbooks. In September 1945, the Austrian Ministry of Education established a Textbook Commission to prepare a list of books for the schools and an estimate of the materials needed for their production. This commission worked as a liaison group between the Federal Ministry and the Allied Education Directorate. It submitted manuscripts and various proposals to the Directorate for approval.

Conclusion
In the face of tremendous difficulties, Austrian adult education leaders have made remarkable strides toward abolishing the frustration and cynicism bred by National Socialism, a lost war, and Austria's uncertain future. Al ready well established in Austrian urban life, the adult education movement has been challenged by the present crisis to broaden its horizons. Its leaders believe today that education of adults for a more responsible and bountiful modern life must cover not only academic and cultural fields, but that it must also embrace the daily and public life of all citizens. Only then can adult education successfully fulfill its mission in Austria.

Examination and Authorship

According to Austrian law, a book desired for use by a local school system must be submitted to the Federal Ministry of Education for approval. When Allied quadripartite control was established, the Ministry was instructed to submit such books, often in manuscript form, to the Education Directorate for examination. The reading of scripts was done by the Books Branch of the British Element, which alone of the four powers had a staff adequate and competent for this work. On the basis of their recommendations, which could be modified by any member of the Directorate, texts were approved, rejected, or returned to the author for modification. On the problem of examination, there was a fair degree of co-operation on the part of the four powers. The greatest difficulties were encountered in subjects such as Geography and History, but although the need for new textbooks in these subjects was great est the demand could not be met because authors were reluctant to risk quad ripartite rejection of manuscripts in such controversial subjects. In order to alleviate the situation the US Element distributed two thousand selected US textbooks for elementary and secondary schools during the sum mer of 1947 to four textbook centers in the US Zone, in order to assist Austrian authors in writing new texts.

Textbook Production and Examination of Instructional Materials

The Scope oi the Task
Austrian schoolbooks have been "purged" three times during a period of less than fifteen years. First, in 1934, when parliamentary government was overthrown, many books were withdrawn from use in the schools. Then in 1938, the Anschluss brought completely Nazified books into the schools for indoctrination of Austrian youth. After the German defeat in 1945, within sixty days after the occupation of Austria by the Allied armies, Austrian

115

Securing Raw Materials

The difficulties of writing and examining of new texts were not the only obstacle in the timely issuance of new school books. Proposals of the Austrian Textbook Commission of 1 October 1945 for the production of textbooks in volved raw material estimates that seemed excessive to the Soviet Element of the Directorate. Accordingly, a survey was ordered to determine existing stocks in the various zones of occupation. Reports from the British and US Elements indicated that stocks were inadequate and the Austrian Textbook Commission could be authorized to print only 50% of the quantity it had proposed. Yet the Austrian authorities still found themselves face to face with new material difficulties. The large amount of paper, about 2,000 tons, was simply unobtainable. Paper was a scarce item at the time and it became necessary to appeal for help to the Education Directorate of the Allied Commission. With the effective intervention of the Allied

authorities the paper was finally obtained and printing well under way by December 1945. Nevertheless, textbooks were still only appearing on the market in small quantities and after investigating the reasons for this new delay it was found in the spring of 1946 that the twenty largest binderies of Vienna were working on large orders that had been placed with them by the Soviet Element. These books were for export to the USSR. After considerable negotiations among the four Allied elements agreement was finally reached that the 20 binderies would be released in August and that the production of textbooks would have first priority. Even then the production of textbooks had to be slowed down with the onset of the very severe winter of 1946-47, which brought about a serious recession of production, due to shortages of coal and electric power. It was not until spring of 1947 that the problem of providing textbooks. for Austria's school children was reallv solved.

116

STATISTICAL ANNEX

8*

LIST OF STATISTICAL TABLES

of Table Title Page No. of Table Title Page

MONEY AND BANKING

AUSTRIAN FEDERAL RAILROADS 121

122
122
123
24 25 26 27 28 29 30 31 32 33 War Damage Reconstruction of Railroad Facilities Mileage Employment Revenues and Expenditures Passenger Traffic Freight Traffic via Austrian Railroads 1936 Freight Traffic Standard Gauge Rolling Stock Available on Lines Locomotive Operations Locomotive Fuel and Lubricant Consumption HIGHWAY TRANSPORT
124
124
125
127
127
128
129
129
129
130
130
131

Assets and Liabilities of the Austrian National Bank Deposits in Austrian Credit Institutions Loans Outstanding with Credit Institutions Number of Credit Institutions in Austria

INSURANCE

5 Insurance Premiums and Claims Paid 6 Number of Insurance Companies Operating in Austria

123
123

137
138
138
139
140
140
141
142
143
143

PRICES AND WAGES Comparison of Austrian Cost of Living Indices Components of the Austrian Cost of Living Index April 1946 through December 1947 Itemized Expenditures of an Austrian Worker's Family, J a n u a r y 1947 and November
1947 and Costs for Identical Commodities in April 1945 10 Weekly Expenditures of an Average Austrian Working Family, 1946 and 1947 . . . . 11 Index of Official and Black Market Prices in Vienna 12 Vienna Black Market Prices for Selected Commodities, 1946 and 1947 13 Black Market Dollar Rate in Vienna, Monthly Averages 14 Changes in Legal and Black Market Prices of Specified Commodities in Vienna . . . . 15 Index of Vienna Black Market Prices for Selected Food and Semi-Luxuries 1946 and 1947 16 Index of Wholesale Prices, Food and Semi-Luxuries, September 1946 through December
1947 17 Index of Free Market Prices 18 Development of Real Wage Rates of Industrial Workers in Vienna

34 35 36 37 38

Austrian Austrian Austrian Austrian Austrian

Highways 1936 Highway Vehicle Registration 1947 Federal Railroad Bus System Post Office Bus System Highway Vehicle Registration 1937 WATER TRANSPORT

144
144
144
144
145

39 40 41 42 43

Shipping on the Austrian Stretch of the Danube 1936 Shipping on the Austrian Stretch of the Danube Tonnage Moved via Danube River in 1936 Passenger Traffic on Austrian Lakes and the Danube in 1936 River Construction Office Operations (River and Harbors) MUNICIPAL TRANSPORT VIENNA

146
146
147
147
147

AUSTRIAN FEDERAL BUDGET

19 20 21 22 23 Budget Estimates and Results Estimated and Actual Ordinary Budget Receipts Estimated and Actual Ordinary Budget Expenditures Tax Revenues Compared to Budget Estimates Components of Actual Tax Revenues 132
133
134
135
137

44 Summary of War Damages 45 Vienna Street Car and Rapid Transit System COMMUNICATIONS 46 Austrian Post and Telegraph Administration Revenue and Expenditure 47 Personnel of the Austrian Post and Telegraph Administration

148
148

148
149

119

No. of Table

Title

Page

No. of Table

Title

48 49 50 51 52

Letter Mail 1936, 1946 and 1947 Parcel Post Telephone Operations Telephone Traffic, Long Distance Calls Telegraph Traffic AIR OPERATIONS

149 149 150 150 150

59 Estimate of Arrivals, Departures, and Number of Jewish Refugees in the US Zone and US Vienna Area since 1 November 1945 60 Resettlement Program US Zone and US Vienna Area EDUCATION 61 62 63 64 65 66 67 68 69 70 71 72 73 Public Kindergartens and Day Care Centers, all Austria, 1945, 1947 Provisions for Young Children in Vienna Public Institutions The Elementary Schools Special Facilities in Austrian Compulsory Schools, 1946/47 The Special Schools Enrollment in Austrian Trade and Engineering Schools, 1947/48 The Secondary Schools Enrollment in Secondary Schools Subjects and Time Allotments in Secondary Schools The Normal Schools Budgets for Universities and Colleges Enrollments in Colleges and Universities Membership in Youth Organizations 1947

155 155,

53 Oelag 1930 to 1937 RESTITUTIONS 54 Status of Restitution Claims 56 Estimated Evaluation of Completed Restitutions in US Zone Austria 56 Completed Restitutions from US Zone Austria DISPLACED PERSONS 57 58 Repatriation of Displaced Persons from US Zone and US Vienna Area Zonal Comparison of Displaced Persons Population

151

151 152 153

154 154

156 156 156 156 157 157 157 157 158 158 159 159 160

120

MONEY AND BANKING (In Millions of Schillings) A Foreign Exchange b) s e t ASSETS AND LIABILITIES OF THE AUSTRIAN NATIONAL BANK s Discounted Bills Claims against Fed. Treasury L i a b i l i t i e Giro Accounts c) Note Circulation Total Circulation e) Table No. 1

Gold a)

Fractional Currency

Average: 1929 1937 End of: Nov 1945 Dec 1945 .

168.7 243.0

564.3 121.3

2.3 9.0

240.0 193.0

111 620/) N.A. N.A.

1947 0 0.9 1.4 1.1 0.5 0.5 1.2 1.9 2.8 7.3 7.0 3.8 i) 1947 | 1946 1.2,559 N.A. 12,501 i N.A. 12,503 i N.A. 12,487 : N.A. 12,477 N.A. 12,422 N.A. 12,403 N.A. 12.384 N.A. 12,359 N.A. 12,646 A) 12,346 | 12,558 12,340 12,547 12,346 i)!

1,034 909

N.A. N.A. 1946 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 0.0 h) 0.1 0.1 1947 0.1 47.6 47.6 47.6 47.6 47.6 47.6 47.6 47.6 47.6 47.6 47.6 t)

N.A. N.A. 1946 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 9.0 h) 13.1 16.8 1947 18.9 23.6 27.5 28.0 30.0 32.0 33.8 35.1 35.8 41.1 56.7 48.8 i)

N.A. N.A. 1946 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 5.8 h) 6.0 6.0 1947 5.8 5.5 5.1 4.9 3.5 3.4 3.0 3.0 2.7 2.6 2.7 3.3 *) 1946 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 0 0 0

N.A. N.A.

RM 8,659.8 3,265 g) 1946 3,811 3,615 4,142 4,179 4,131 4,293 4,239 4,241 3,143 3,113 3,020 2,898 1947 2,893 2,795 2,760 2,806 3,022 3,179 3,187 2,955 2,801 2,818 4,271 4,750 i) 1947 8,615 8,648 8,698 8,702 8,729 8,726 8,782 8,829 8,900 9,037 9,080 9,071 i)

Jan lreb Mar Apr May

Jim

Jul Aug Sep Oct Nov Dec

a) 1946 the b) e) d) e)

At the end of 1937 one kilogram of fine gold was valued at S 5,976.30. In October value of fine gold was fixed at S 10,690 per kilogram. Valued in accordance with official buying rates published by Austrian National Bank. Clearing house accounts maintained by banks, brokers, warehouse firms, etc. Accounts frozen by law. Sum of Note Circulation and free giro accounts.

/) Bank holdings g) After the first h) Figures are as i) Figures are as Protection Law). Source: Austrian

of Federal Government Bonds, issues A, B and C of 1931. conversion (Schilling Law of 30 November 1945). of 7 October 1946, the date of the first published postwar statement. of 7 December 1947, latest publication before second conversion (Currency National Bank.

121

MONEY AND BANKING

(In Millions of Schillings) DEPOSITS IN AUSTRIAN CREDIT INSTITUTIONS a)
Interbank Deposits not included Breakdown according to Type of Credit Institution End of Total Deposits Commercial Banks N.A. 2,235 Savings Banks
2,348 2,267

Table No. 2

T
Total Savings 2,800 3,177 1946 3,991 4,005 3,949 3,656 9,953 9,931 9,810 9,657

Breakdown according to Type of Deposits S a v i n g s Blocked Free 2,800 1,311 Total Checking 1,180 3,389 C h e c k i n g Blocked 0 1,342 Free 1,180 2,047

Postal Savings Bank N.A. 2,064

Credit Cooperatives

Dec 1937 .. Dec 1945 6) Jan 6) Feb 6) Max&) Apr J) May Jun Jul Aug Sep Oet Nov Dec

3,980 6,566

1946 1947 1946 1947 1946 1947 1946 1947 ! 7,793 15,775 2,740 3,301 2,233 5,885 2,820 c) 2,581 ! 7,671 15,574 2,632 3,317 2,160 5,872 2,879 c) 2,388 ! 7,560 15,605 2,571 3,340 2,128 5,791 2,861 c) 2,496 | 7,328 15,680 2,585 3,412 2,092 5,752 2,651 c) 2,536 i 16,164 15,716 3,425 3,496 6,469 5,712 2,842 c) 2,563 | 16,098 15,768 3,320 3,567 6,401 5,653 2,933 c) 2,630 ! 16,154 15,548 3,313 3,594 6,336 5,606 3,037 c) 2,509 16.080 15,151 3,261 3,481 6,318 5,526 3,058 c) 2,410 2,409 16,332 15,161 3,199 3,560 6,199 5,469 3,067 16,270 15,102 3,204 3,614 6,123 5,387 3,593 c) 2,418 16,008 15,492 3,278 3,623 6,028 5,340 3,361 c) 2,833 3,378 1,738 5,926 1,066 2,700 1,709 15,987 a) Exclusive of the Austrian National Bank. &) Data available for Vienna Banks only; apparent sharp rise in following months is due to availability of data on all Austria starting in May 1946. c) Includes Mortgage Banks and Dorotheum (Government-owned auction house which maintains customer accounts like a savings bank).

N.A. N.A. 1946 1947 N.A. 3,251 N.A. 3,248 N.A. 3,237 N.A. 3,216 3,428 3,194 3,444 3,176 3,468 3,073 3,443 3,017 3,432 2,990 3,350 2,956 3,341 2,944 549 3,324

1947 1946 1947 1946 1947 1946 1947 1946 1947 1946 1947 9,585 2,312 6,200 1,679 3,385 3,802 6,190 1,491 2,095 2,311 4,095 2,436 6,235 1,569 3,293 3,666 6,046 1,394 2,070 2,272 3,976 9,528 1,545 3,193 3,611 6,186 1,320 2,042 2,404 6,226 2,291 4,144 9,419 2,298 6,175 1,358 3,138 3,672 6,359 1,343 1,997 2,329 4,361 9,321 6,076 6,176 3,877 3,072 6,211 6,468 2,573 1,934 3,638 4,534 9,248 6,085 6,164 3,846 3,015 6,167 6,589 3,646 4,663 2,521 1,926 9,179 6,057 6,125 3,753 2,899 6,344 6,524 3,878 4,615 2,466 1,909 9,024 5,987 6,096 3,670 2,806 6,423 6,249 4,027 3,454 2,396 1,895 8,902 6,201 6,083 3,777 2,723 6,354 6,354 4,014 4,470 2,340 1,885 9,978 8,806 6,229 6,067 3,663 2,614 6,378 6,422 4,127 4,544 9,892 8,681 2,251 1,878 6,202 6,055 3,472 2,573 6,334 6,864 4,111 4,978 9,674 8,628 2,223 1,885 6,246 3,357 953 6,384 4,485 4,247 4,485 0 0 953 9,603 2,137 d) Drop due to the second Currency Conversion (Currency Protection Law of 10 Dec 1947). The amounts temporarily blocked under the Currency Protection Law were not reported separately, and are therefore included among the free savings and checking deposits in Dec 1947 and following months. Source: Austrian National Bank. Table No. 3 By Size By Maturity over S 50,000 1,273.1 1,346.5 1,381.9 1,454.4 1,514.6 1,646.5 1,638.1 up to 3 Months 188.0 209.7 230.0 255.6 325.8 434.0 473.5 3 to 12 Months 122.6 160.1 197.2 253.5 262.2 326.7 313.5 over 12 Months 1,413.9 1,442.0 1,442.5 1,431.7 1,424.3 1,432.7 1,359.2

(In Millions of Schillings)

LOANS OUTSTANDING WITH CREDIT INSTITUTIONS Other than National Bank By Type of Recipient Total Loans 1,724.5 1,811.8 1,869.7

End of 1946 2nd Q 3rd Q 4th Q

Agriculture ! * n d u s t r y | & Mining 193.9 203.1 208.8 209.6 201.9 210.1 183.5 ! 681.8 715.6 725.3 772.8 803.7 844.6 885.8

Small Business 155.5 170.3 181.4 179.9 198.9 235.8 228.8

Trade & Traffic 117.5 142.1 163.0 193.6 215.6 315.0 265.2

Public Corporations 194.9 199.9 202.8 189.4 182.5 210.4 204.4

Other 380.9 380.8 388.4 395.5 409.7 377.5 378.5

up to S 10,000 231.7 234.4 241.0 237.5 244.8 257.8 236.6

S 10,000 to S 50,000 219.7 230.9 246.8 248.9 262.9 289.1 271.5

1,940.8 1947 1st Q 2,012.3 2nd Q 2,193.4 3rd Q 2,146.2 4th Q Source: Austrian National Bank.

; | j

122

MONEY AND BANKING DUMBER OF CREDIT INSTITUTIONS IN AUSTRIA

INSURANCE

Table No. 4 Dec 1947 19 21 9 174 1760 164 2147

NUMBER OF INSURANCE COMPANIES OPERATING IN AUSTRIA

Table No. 6

Type of Institution Commercial Banks Private Banks a) Mortgage Banks Savings Banks Rural Credit Cooperatives Urban Credit Cooperatives

Dec 1937 21 133 9 197 1839 301

2500

March 1938 i Mut. Stock Total Mut. Stock Total Mut. Stock Total

) Includes stock market brokers authorized to carry on limited private banking but seldom performing this function. Source; Austrian Ministry of Finance.
INSURANCE INSURANCE PREMIUMS AND CLAIMS PAID a)

1. AUSTRIAN COMPANIES Life Insurance only Life and General a) Insurance General Insurance only .. Sickness Insurance only .. Other Types Total . . . GERMAN BRANCHES Life Insurance only General Insurance only .. Sickness Insurance only .. Other Types .... Total . . . 3. ITALIAN BRANCHES Life and General Insurance 4. SWISS BRANCHES General Insurance only .. 5. OTHER FOREIGN BRANCHES Life Insurance only Life and General Insurance General Insurance only .. Total GRAND TOTAL 15 14

2 17 0 1

3 23 4 1
36

(In Thousands of Schillings) General Insurance b) Period Premium Income 12,500 e) 17,500 e) 20,500 e) 21,750 e) 22,421 27,002 34,978 32,608 37,785 74,567 Claims Paid 3,400 e) 3,030 e) 2,650 e) 1,430 e) 10,850 13,726 10,081 16,105 14,049 15,673 Life Insurance c) Premium Income 13,700 e) 14,300 e) 14,800 e) 15,700 e) 15,287 15,287 15,960 15,442 15,002 18,804 Claims
Paid
4,040 e) 4,500 e) 5,000 e) 5,400 e) 7,782 12,953 10,321 11,470 8,775 7,731

Table No. 5 Sickness Insurance d) Premium Income 3,060 e) 3,800 e) 4,160 ej 4,400 (?) 4,529 4,733 5,267 5,606 6,098 9,438 Claims Paid 980 e) 1,400 e) 1,970 e) 2,600 e) 2,648 2,756 2,721 3,129 3,548 4,034

0 0 0 0

2 6 0

o !

2 0 0 0

25

40

65

15

30

45

Jul Sep 1945... Oct Dec 1945... Jan Mar 1946... Apr J u n l 9 4 6 . . . Jul Sep 1946... Oct Dec 1946... Jan Mar 1947... Apr Jun 1947... Jul Sep 1947... Oet Dec 1947...

a) Includes only premium income and claims payments resulting from direct business within Austria of companies submitting complete reports for entire period from July 1945 to end of most recent period shown. b) 34 companies reporting.
c) 23 companies reporting.
d) 16 companies reporting.
e) Quarterly data estimated from semi-annual averages.
Source: Austrian Ministry of Finance.

5
42

1 39

3 71

4 110

1 31
63

57

94

a) Accident, property damage, etc. Source: Austrian Ministry of Finance.

123

PRICES AND WAGES COMPARISON OF AUSTRIAN COST OF LIVING INDICES April 1945 = 100 Central Statistical Office a) Institute for Economic Kesearch Table No. 7 Chamber of Labor

Month and Year

The difference between this index and that of the Austrian Institute for Economic Research arises from the fact that the selection of items constituting each component is different in each instance. The indexof the Chamber of Labor is an expenditure index rather than a cost of living index since it depends in each ration period on the type and quantity of rationed items made available. Sources: Austrian Central Statistical Office; Austrian Institute for Economic Research; Austrian Chamber of Labor. PRICES AND WAGES

1946 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1947 Jan Feb Mar Apr May 6) Jun Jul e) Augd) Sep d) Oct Nov Dec 157.8 167.0 168.0 168.6 192.4 192.5 262.7 310.5 374.4 374.4 395.7 397.0 145.4 154.4 166.2 168.7 188.4 189.1 260.5 301.0 342.0 350.2 354.5 357.0 163.8 167.2 167.8 175.2 194.0 196.4 199.6 249.0 352.0 362.0 364.6 367.4 | ! j i | ; j j | i 116.4 115.4 116.4 129.3 129.2 131.1 139.6 139.6 140.4 144.9 150.6 153.7 N.A. N.A. N.A. 113.4 113.4 113.7 121.6 123.2 125.6 134.9 141.8 143.7 N.A. N.A. N.A. 141.6 N.A. 145.2 147.9 148.0 155.0 155.0 161.3 163.7

COMPONENTS OF THE AUSTRIAN COST OF LIVING INDEX (a APRIL 1946 THROUGH DECEMBER 1947 April 1945 = 100 Food& Semi luxuries

Table No. 8

Total

Education Trans& Enter- port tainment

'

1946 Apr . . . May .. Jun . . . Jul . . . Aug .. Sep . . . Oct . . . Nov .. Dec . . . 1947 Jan . . . Feb . . . Mar . . . Apr . . . May .. Jun . .. Jul . . . Aug .. Sep . . . Oct. . . . Nov .. Dec . . .

113.4 113.4 113.7 121.7 123.2 125.6 134.9 141.8 143.7

112.6 112.6 120.2 120.2 122.9 127.0 140.6 146.3 148.4

100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

113.4 113.4 113.4 113.4 113.4 113.4 113.4 139.0 139.0

108.1 108.1 108.1 124.8 124.8 124.8 131.1 145.6 145.6

188.2 188.2 188.2 188.2 188.2 188.2 208.4 216.8 238.7

113.5 113.5 127.0 127.0 127.0 127.0 127.0 127.0 134.8

137.1 137.1 137.1 137.1 137.1 137.1 137.1 137.1 137.1

100.0 100.0 100.0 119.3 119.3 119.3 119.3 119.3 119.3

a) Official Index of the Austrian Central Statistical Office, April 1938 = 100, adjusted to an April 1945 base. b) Price increases granted by the official price control authorities of certain industrial products and consumer goods. c) Rise in prices of agricultural products, e. g.: beef 134%, pork 293%, lard 270%, milk 36%; of consumer goods, e. g. shoes 13%, clothing 31%, houseware 20%. d) Effects of the Price Wage Agreement. Note: The index of the Central Statistical Office is made up of the following components: food, shelter, clothing, heat & light, semi-luxuries and miscellaneous items.

145.4 154.4 166.2 168.7 188.4 189.1 260.5 301.0 342.0 350.2 354.5 357.0

150.1 150.5 156.0 158.2 164.6 164.8 275.3 322.2 333.6 333.9 339.5 343.9

100.0 100.0 102.7 102.7 110.4 110.4 110.4 123.7 123.7 144.7 144.7 144.7

139.0 233.8 233.8 253.1 253.1 253.1 253.1 363.1 398.3 398.3 398.3 398.3

149.9 162.4 203.3 204.6 288.3 290.6 336.0 336.0 483.6 510.4 513.3 513.3

238.7 247.1 275.6 322.7 331.1 331.1 398.3 452.9 552.9 552.9 582.4 582.4

134.8 134.8 134.8 134.8 191.0 191.0 191.0 221.9 334.3 401.7 401.7 401.7

138.2 138.2 146.2 146.2 154.9 158.9 161.1 193.1 247.6 250.2 251.6 251.6

119.3 151.7 151.7 151.7 151.7 151.7 151.7 214.7 233.2 233.2 233.2 233.2

a) In all cases the latest available figures have been utilized.

Source: Austrian Institute for Economic Research.

124

PRICES AND WAGES ITEMIZED EXPENDITURES OF AN AUSTRIAN WORKER'S FAMILY a) JANUARY 1947 AND NOVEMBER 1947 AND COSTS FOR IDENTICAL COMMODITIES IN APRIL 1945

Table No. 9

Total Expenditures for Quantities Received in Volume of Items Actually Received in Price/Unit Jan 1947 Nov 1947

Commodity

Unit

Compared to Expenditures for Same Quantities in Apr 1945 Jan 1947 Nov 1947 27.00 168 6.27 4.06 0.20 3.12 2.56 1.24 1.05 3.08 Apr 1945 0.33 0.04 0.48 2.00 1.90 Jan 1947 0.59 0.05 0.76 3.20 3.60 Nov 1947 1.16 0.09 1.60 8.70 Apr 1946 9.90 6.88 2.61 V) 3.80 0.68 1.08 6.18 1.44 0.16 0.25 1.03 2.97 1.60 0.26 0.45 5.03 44.32 Jan 1947 17.70 8.60 4.95 b) 6.08 1.30 3.16 6.18 2.91 0.21 0.26 2.45 5.50 1.60 0.77 1.66 8.77 72.10 21.00 13.60 11.70
46.20

Apr 1946 8.91 6.72 3.01 8.10 0.40 6.74 1.11 1.22 0.95 2.34 3.39 0.69 4.63 2.05 3.61 53.87 6.00 1.20 10.80 2.00 2.00
22.00

Nov 1947 31.32 15.12 10.05 35.24 1.44 28.08 4.28 3.57 1.42 5.67 9.55 2.62 18.29 9.40 17.19 193.14 48.80 24.00 30.00 32.00 25.20 160.00 9.60 18.60 28.10 23.01

Bread Rolls Flour Beef Veal Canned Meat Lard & Bacon Cereals Maccaroni & other Paste Pulses Sugar Milk & Cheese Fish Apples Potatoes Vegetables d) Miscellaneous e) I. Rationed Food. Cigarettes Cigarettes ration-free Beer Wine Hard Cider II. Semi-Luxuries. Gas Electricity III. Light & heat IV. Rent Source: Austrian Chamber of Labour.

pcs kg kg kg kg kg kg kg kg

30.00 172 5.37 b) 1.90 0.36 0.92 2.91 3.09 0.16 0.28 1.36

0.98 0.90 0.76 0.80 0.69 0.11

1.34 0.94 1.80

0.80 0.22

2.88 1.35 1.84

can kg kg kg

1.60 1

1 50.80 c)

2.52 0.36

pcs pcs It It It

90 15 1.5

100 20 15 1 1

0.06 0.06 0.72 2.00 2.00

5.40 0.90 7.80 1.20 2.00 32.00 25.20 10.80 3.00 19.20

cm1 kwh

25 20

25 20

0.14 0.43

0.14 0.43

0.38 0.93

3.50 8.60 12.10 15.90

3.50 8.60 12.10 15.90

3.50 8.60 12.10 15.90

125

Table No. 9 Cont'd Total Expenditures for Quantities Keceived in Volume of Items Actually Received in Price/Unit Jan 1947 Nov 1947

Commodity

Unit

Compared to Expenditures for Same Quantities in Apr 1945 j Jan 1947 ! Nov 1947 10 4 1 1 1 1 Apr 1945
0.28 0.20

Jan 1947
0.40

Nov 1947 1.00 0.62

Apr 1945 2.80 5.30 5.48

Jan 1947
4.00 6.20

Apr 1945 2.80 5.30 0.80 4.68 0.60 1.75 0.25 0.16 16.34 1.70 2.00 0.24 6.40 10.00
20.34

Nov 1947 10.00 11.40 2.48 12.45 2.10 5.40 1.58 0.88 46.29 7.80 3.00 0.80 10.40 22.00 44.00 494.54

Baths Hairdresser Washing Powder Soap Tooth Paste Cold Cream Shoe Polish Soda V. Hygieny Newspaper Radio Fee . Postage . . . Movies Streetcar... VI. Miscellaneous I.VI. Grand Total

each pkg tube can can

10

8.12

0.60 1.75 0.25 0.16

2.10 5.40 1.58 0.88 13.58 1.70 2.00 0.24 6.40 10.00 20.34 125.44 18.32 5.20 2.00 0.36 8.00 10.00 25.56 190.18

0.12 0.80

0.18 1.00

0.40 1.30

140.55

a) Family of four: worker, wife and two children: 6 and 12 years old.
b) Including 1.53 kg of potato-flour at 0.50 S in April 1945 and 1.33 S. per kg in Jan. 1947.
c) Includes 48 kg potatoes for winter storage in November 1947; in January 1947 it includes
0.20 kg of dried potatoes. d) Includes Sauerkraut and beets in January 1947; onions, spinach carrots and others in November 1947.

c) Includes salt, pudding powder, artificial honey, jam, coffee in January 1947; salt, liquid soup flavor, bullion cubes, soup powder, coffee substitute, hard malt candy, tomato juice in No vember 1947. Source: Austrian Chamber of Labor.

126

PRICES AND WAGES WEEKLY EXPENDITURES OP AN AVERAGE AUSTRIAN WORKING FAMILY a) 1916 AND 1947 Table No. 10 Family without Children Kation Period Four Weeks Ending Schillings per Week Index i) Family with Two Children Schillings per Week Index V)

PRICES AND WAGES INDEX OF OFFICIAL AND BLACK MARKET PRICES IN VIENNA August 1945 = 100 Table No. 11 Eelation of Black Market Prices to official Prices Official Prices = 1 Food 6) Semiluxuries c)

Black Market Prices a) Year, Month Food i) Semiluxuries c)

Official Prices

1946 9 9 6 4 26 23 21 18 15 13 10 8 Feb . Mar . Apr May May Jun Jul Aug S~ep Oct Nov Dec 1947 5 2 2 30 27 25 22 20 17 14 12 9 7 4 Jan . Feb . Mar Mar Apr . May Jun Jul Aug Sep Oct Nov Dec Jan 40.70 40.79 39.09 50.82 47.60 60.90 33.24 39.15 49.74 68.38 66.29 65.70 65.39 67.78 209.3 209.7 201.0 261.3 244.7 313.1 170.9 201.3 255.7 351.6 340.8 337.8 336.2 348.5 51.47 52.64 52.98 65.31 65.76 76.86 46.80 58.88 71.68 96.77 93.44 92.11 88.39 103.54 198.2 202.7 204.0 251.5 253.2 296.0 180.2 226.7 276.0 372.6 359.8 354.7 340.4 398.7 1947 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 19.45 21.55 29.36 33.13 34.77 28.83 31.24 33.48 36.68 37.42 29.20 27.76 100.0 110.8 151.0 170.3 178.8 148.2 160.6 172.1 188.6 192.4 150.1 142.7 25.97 30.38 38.52 45.76 47.38 41.73 41.35 48.78 55.24 49.48 40.86 39.80 100.0 117.0 148.3 176.2 182.4 160.7 159.2 187.8 212.7 190.5 157.3 153.3

Food b)

Semiluxuries c)

1946 Mar . Apr . May Jun Jul Aug Sep Oct Nov Dec 66.6 75.6 68.9 66.4 50.0 39.1 28.9 25.6 23.6 26.5 53.2 60.5 34.9 34.7 30.9 22.8 18.7 16.0 13.4 15.0 109.4 109.5 109.5 109.4 111.3 111.7 131.1 143.7 158.0 157.6 364.0 364.0 364.0 364.0 364.0 364.0 365.7 365.7 366.1 366.1

166 168 162 148 105 82 55 45 40 43

44 40 37 37 36 33 19 18 19 19 18 24

18 21 10 10 9 6 4 4 4

i ; i !

i ! ;

26.4 23.4 21.8 22.5 22.0 24.0 24.1 25.7 26.5 26.8 24.8 32.1

14.7 13.1 12.7 13.5 13.1 15.2 15.4 16.9 20.0 20.5 21.7 30.4

157.6 157.6 157.9 157.9 157.9 178.5 299.1 355.7 355.7 355.7 355.7 355.7

369.0 369.0 372.8 372.8 383.8 383.8 425.7 601.7 601.7 601.7 601.7 601.7

a) Includes expenditures for rationed food, rent, tobacco, heat, light, health, education, recreation, and transportation. Not included are expenditures for items purchased on the black market and cost of clothing, household items, and minor incidental expenses. h) This column should not be regarded as a cost of living index, but rather as an expendi ture index since actual weekly expenditures not only vary because of price changes but are very dependent on the quantity and type of commodities made available in eacli ration period. Source: Austrian Institute for Economic Research.

o) Based on figures given by the Economic Police. b) Components: Flour, bread (white and black), meat (beef and pork), lard, oil, sugar. c) Components: Coffee, tea, wine, cigarettes. Source: Austrian Institute for Economic Research.

127

PRICES AND WAGES (In Schillings) Flour, white j Bread, dark Year, Month b) Unit: kg 1946 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1947 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 37.5 37.5 30 27.5 27.5 30 30 30 35 37 37 40 11.5 10
9

VIENNA BLACK MARKET PRICES FOR SELECTED COMMODITIES. 1946 AND 1947 a) Bacon Lard kg Beef Pork kg Sugar Cigarettes (American) each liter Men's Shoes pair Cloth, wool

Table No. 12 Gasoline liter

Oil kg

50 60
77.6

77.5 70
80

65 46 27.5 27.5 30 35

30 40 37.5 50 37.5 47.5 37.5 22.5 17.5 13.5 10 15

300 500 350 400 400 350 260 150 165 140 160 160 120 135 145 145 135 135 135 180 180 190 200 225

400 400 600 525 550 425 280 250 185 195.5 170 180 210 140 140 145 120 120 150 190 190 200 210 225

400 400 400 400 400 275 250 180 200 175 175 175

100 100 110 125 105 120 80 130 75 50 50 47.5

55 52.5 52.5 47.5 52.5 52.5 53 90 90 90 70 93

150 150 215 187.5 190 185 220 165 110 85 85 90

200 ! 200 265 | 295 I 350 \ 325 180 132.5 105 105 100 125 125 125 115 110 110 120 120 120 120 120 110 225

3 3 2.75 3.75 35 . 35 . 25 . 2.26 2.25 2.25 16 . 14 .

1.25 1.42 1.42 1.42 1.47 1.55 1.65 2.00 2.20 2.20 1.30 1.45

80
60 80 80 75 75 70 75 57.5 25 20 30 35 27.5 25 25 27.5 35 35 37 42.5 42.5 50 60

i
!

1000 1200 1506 1500 1150 1400 1050 400 600 550 300 500
450 450 700 700 500 500 760 750 750 750 850 850

800 300 800 800 750 1000 1750 450 350 350 350 350

15 50 21 21 21 18 15 7.5 8 6.5 7.5 9.5

7.5 7 9 8 9 9 9 9 10

175 120 130 115 95 95 190 230 230 230 230 230

97.5 82.5 82.5 95 95 105 105 115 115 i 115 95 105

350 350 575 650 650 650 750 750 700 650 650 650

8.5 8 9 9

11 15 17.5 32.5 32.5

a) Quotations for all black market items showed a wide range at all times. The figures given here represent the middle of the range.

b) Quotations as of the middle of each month. Source: Economic Police, City of Vienna.

128

PRICES AND WAGES BLACK MARKET DOLLAR RATE IN VIENNA MONTHLY AVERAGES

PRICES AND WAGES INDEX OF VIENNA BLACK MARKET PRICES FOR SELECTED FOOD AND SEMI-LUXURIES 1946 AND 1947

Table No. 13 1946 (Schillings) 1947

January 1946 = 100 1945 (Reichsmark) Jan . Feb . Mar . Apr . May Jun , Jul . Aug Sep . Oct . Nov Dec . a) Post Currency Conversion Figure. Source: US Allied Commission Austria.
CHANGES IN LEGAL AND BLACK MARKET PRICES OF SPECIFIED COMMODITIES IN VIENNA

Table No. 16 Food I) Semi-Luxuries c)

Year, Month a)

N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 280 382 400

167 155 146 135 100 81 59 50 53 53 57 61

66 70 77 86 97 118 130 147 130 125 175 85 o)

1948 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1947 100.0 88.4 90.8 93.7 96.7 94.7 70.0 64.1 41.2 33.6 34.2 38.4 100.0 104.0 100.1 79.3 62.1 59.4 53.7 45.3 42.4 32.4 24.0 29.0

(In Schillings) Commodity

January 1946 and June 1947 Legal Market Unit Jan 1946 Jun 1947 0.76 0.59 2.16 2.16 2.90 13.60 1.80 7.00 25.00 25.00 10.00 Jan 1946 50.00 30.00 300.00 400.00 400.00 100.00 200.00 80.00 1,000.00 800.00 155.00

Table No. 14 Black Market a) Jun 1947 30.00 9.00 135.00 120.00 95.00 52.50 120.00 35.0C 500.00 650.00 106.00

Flour, white Bread, dark Bacon Lard Vegetable Oil Beef

Sujjar

kg

"Wine Shoes, Men's Cloth, wool US. Dollar

liter pair m2 each

0.48 0.34 2.16 2.16 2.10 1.80 0.78 4.00 25.00 15.00 10.00

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec d)

38.3 39.6 29.9 34.1 31.2 35.2 35.3 35.3 38.9 40.1 37.6 51.0 a) Quotations as of the first week of each month. I) Components: Flour, bread, sugar, lard, beef, pork, and eggs. c) Components: Tea, coffee, wine, cigarettes, and cigarette tobacco. a) 25 Dec. Source: Austrian National Bank, Economics Division.

26.9 26.1 23.4 25.8 24.9 29.1 29.0 29.7 32.9 35.5 31.6 36.0

a) Quotations for all black market items showed a wide range at all times. The figures given here represent the middle of the range. Source: Legal Prices Austrian Price Control Office. Black Market Prices Economic Police and Food Office, City of Vienna.

129

PRICES AND WAGES INDEX OF WHOLESALE PRICES, FOOD & SEMI-LUXURIES SEPTEMBER 1946 THROUGH DECEMBER 1947 March 1938 (Reichsmark) = 100 F t> o d Year & Month Total 1946 Sep Oct Nov Dec 1947 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 194.8 196.4 196.8 199.0 199.0 199.0 285.8 357.6 431.8 421.1 427.7 434.0 144.6 145.0 145.0 145.0 145.0 145.0 145.0 246.7 248.5 249.7 254.5 252.7 360.3 383.4 383.4 429.6 429.6 429.6 429.6 1,071.6 794.5 579.7 579.7 679.7 213.5 213.5 213.5 213.5 213.5 213.5 213.5 213.5 213.5 213.5 213.5 213.5 157.4 157.4 157.4 157.4 157.4 157.4 221.3 245.9 245.9 245.9 245.9 246.9 195.1 195.1 195.1 195.1 195.1 195.1 415.1 415.1 415.1 415.1 415.1 415.1 420.8 420.8 403.3 403.3 403.3 403.3 403.3 403.3 1,829.1 1,829.1 2,431.0 2,573.9 163.5 182.8 192.8 194.7 143.3 144.1 144.1 144.3 406.5 360.3 360.3 360.3 104.4 104.4 213.5 213.5 157.4 157.4 157.4 157.4 127.7 189.9 189.9 195.1
400.7 400.7 420.8 420.8

PRICES AND WAGES INDEX OF FREE MARKET PRICES Table No. 16 SemiLuxuries a) Year, Month o) Prices Paid at the Viennese Dorotheum b) Gold All Items Table No. 1?

Market Prices of Industrial Stocks 23 Stocks March 1938 = 100 27 Stocks 28 March 1945 = 100

Wheat

Potatoes

Sugar

Milk

Meat

Based on Second-hand Prices in March 1938 = 100 1946 Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1947 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2,060 2,290 2,520 2,520 2,290 2,980 2',520 3,440 3,900 3,210 3,900 2,180 1,310 1,350 1,430 1,440 1,460 1,580 1,570 1,820 1,910 2,130 2,280 1,530 4,590 5,050 4,590 3,670 3,210 1,830 1,830 1,750 1,830 2,290 3,920 2,940 2,440 2,020 1,790 1,470 1,370 1,370 1,340 1,340

N.A. N.A. N.A. N.A. N.A. 339.1 313.8 323.0 375.2 351.6

N.A. N.A. 164.8 185.1 c) N.A. 178.7 174.0 173.6 190.5 186.6

a) Wine, Coffee, Cocoa; since March 1947 also tea; since Nov. 1947 excluding coffee. Source: Austrian Institute for Economic Research.

383.0 385.4 358.9 388.2 455.5 567.3 651.3 873.1 1,029.6 909.9 766.8 615.0

194.6 203.8 192.3 207.8 246.0 295.6 336.6 426.2 518.& 455.a N.A. N.A.

a) Quotation as of the middle of each month.

b) Government Auction House.
c) As of end of month.
Source: Austrian Institute for Economic Research.

130

PRICES AND WAGES

DEVELOPMENT OF EEAL WAGE RATES OF INDUSTRIAL WORKERS IN VIENNA a)

Expressed in Working Hours Official Schilling Price Commodity b) Unit Apr 1938 c) Bread (black) Potatoes Meat (beef) f) Austrian Cigarettes . Wine Electricity , Men's Suit g) Men's Shoes g) Ladies' Dress g) Ladies' Stockings g) Haircut (men's) Cinema Streetcar Ride . . . . Pit Coal 1 kg 10 kg 1 kg 10 pcs 1 liter 1 KWH each pair each pair each each each 100 kg 0.34 0.40 1.60 0.40 0.80 0.55 60.60 10.70 20.00 1.93 1.00 0.47 0.23 6.50 Jun 1947 0.59 2.50 2.90 4.00 6.20 0.75 195.00 48.05 140.00 8.00 1.30 0.90 0.35 18.50 Dec 1947 1.16 5.00 6.95 8.00 26.00 1.25 350.00 88.82 280.00 16.00 2.50 1.30 0.55 28.50 Apr 1938 0.3 0.4 1.6 0.4 0.8 0.5 59.4 10.4 19.6 1.9 1.0 0.5 0.2 6.4 Jun 1947 0.4 1.9 2.2 3.0 4.7 0.6 147.7 36.4 106.1 6.1 1.0 0.7 0.3 14.0 Dec 1947 0.5 2.2 3.1 3.5 11.5 0.6 154.2 39.1 123.3 7.0 1.1 0.5 0.2 12.1 Cost in Unskilled Hours d)

Table No. 18 Cost in Skilled Hours e) Apr 1938 0.2 0.3 1.3 0.3 0.7 0.4 52.7 9.2 17.3 1.7 0.9 0.4 0.2 5.6 Jun 1947 0.3 1.5 1.7 2.4 9.7 0.4 115.4 28.4 82.9 4.7 0.8 0.5 0.2 10.9 Dec 1947 0.4 1.9 2.6 3.0 9.7 0.5 131.0 33.3 104.8 6.0 0.9 0.5 0.2 10.7

a) These data are based on the metal products industries which employ a large proportion of Vienna workers: this industry pays fairly representative wages, and reflects with reasonable accuracy general wage trends for the periods covered. I) Where there has been any change in the quality it has been in the direction of deterioration in the latter period. c) Reichsmark = Schilling. d) Calculated on the basis of wage rates for an unskilled worker in the metal products industries. After deduction for taxes and social insurance the average hourly earning for

a worker heading a family of four was: April 1938 = S 1.02; June 1947 = S 1.32; December 1947 = S 2.27 (Reichsmark = Schilling). e) See fortnoted); skilled workers: April 1938 = S 1.15; June 1947 == S 1.69; December 1947 = S 2.67 (Reichsmark = Shilling), /) Ration is small and very infrequent. g) Practicaly not available through legal channels. Source: Austrian Institute of Economic Research.

131

AUSTRIAN FEDERAL BUDGET

(In Thousands of Schillings)

BUDGET ESTIMATES AND RESULTS

Table No. 19 1947 1948 Results Budget Estimate

1946 Budget Estimate I. ADMINISTRATION AND LEGISLATURE A. Revenue

Federal Taxes
Other Government Revenues
Total... B. Ordinary Expenditures Surplus in Ordinary Budget C. Extraordinary Expenditures Surplus or Deficit in Total Budget II. MONOPOLIES: A. Revenue B. Ordinary Expenditures Surplus in Ordinary Budget C. Extraordinary Expenditures D. Investments Surplus in Total Budget III. FEDERAL ENTERPRISES A. Revenue B. Ordinary Expenditures Deficit in Ordinary Budget C. Extraordinary Expenditures D. Investments Deficit in Total Budget IV. FEDERAL RAILROADS A. Revenue B. Ordinary Expenditures Deficit in Ordinary Budget C. Extraordinary Expenditures D. Investments Deficit in Total Budget Results Budget Estimate

1,415,601.0 325,280.7 1,740,881.7 1,704,843.2 36,038.5 431,093.5 395,055.0 88,805.4 45,218.5 43,586.9 2,165.0 41,421.9 226,827.8 265,153.8 - 38,326.0 2,000.0 27,577.0 67,903.0 436,262.0 510,765.0 74,503.0 109,345.0 12,000.0 195,848.0

1,559,533.5 305,372.2 1,864,905.7 1,482,786.8 382,118.9 1,099,394.1 717,275.2 90,066.5 54,300.0 35,766.5 504.9 35,261.6 290,575.9 332,948.5 42,372.6 20,899.5 63,272.1 433,119.1 601,625.5 168,506.4 130,805.9 2,813.7 302,126.0

1,711,610.0
289,020.1
2,000,630.1
1,892,978.2
107,651.9
245,824.7
138,172.8 81,886.1 59,408.3 22,477.8 250.0 3,330.0 18,897.8 334,918.9 363,008.0 28,089.1 2,530.0 26,330.0 56,949.1 560,431.0 671,698.1 111,267.1
160,638.0
50,000.0
321,905.1

3,369,862.0 597,584.7 3,967,446.7 2,516,864.6 1,450,582.1 1,016,368.2 434,213.9 143,379.2 83,040.5 60,338.7 201.9 1,701.7 58,435.1 528,872.7 545,819.9 16,947.2 2,528.6 32,923.7 52,399.5 770,784.6 1,063,779.6 292,995.0 195,689.0 23,933.6 512,617.6

2,517,820.0
557,879.5
3,075,699.5
3,023,749.8
51,949.7
124,845.0
72,895.3 166,296.3 94,208.9 72,087.4 5,375.0 66,712.4 647,6814. 696,489.7 48,808.3 78,250.0
127,058.3
1,161,350.0 1,276,859.8 115,509.8 390,000.0 505,609.8

132

Table No. 19 Cont'd 1946 Budget Estimate V. NET PKOFIT OF ,,AUSTRIA" TOBACCO WORKS VI. GRAND TOTAL A. Revenue B. Ordinary Expenditures Surplus in Ordinary Budget C. Extraordinary Expenditures (Thereof for Displaced Persons) (For Occupation Costs) (Other Extraordinary Expenditures) D. Investments Deficit in Total Budget 37,400.0 Results N.A. Budget Estimate 11,000.0 1947 Results N.A. 1948 Budget Estimate 41,000.0

2,530,176.9 2,525,980.5 4,196,4 542,438.5 56,000.0 250,000.0 236,438.5 41,742.0 579,984.1

2,678,667.2 2,471,660.8 207,006.4 1,230,200.0 69,500.0 866,400.0 294,300.0 24,218.1 1,047,411.7

2,988,866.1 2,987,092.6 1,773.5 409,242.7 a) a) 79,660.0 487,129.2

5,410,483.2 4,209,504.6 1,200,978.6 1,214,787.7 97,066.0 506,606.8 611,114.9 58,559.0 72,368.1

5,092,027.2 5,091,308.2 719.0 124,845.0 a) a) a) 473,625.0 597,751.0

a) Not included in the Budget. Source: Bundesgesetzblatt fur die Republik Dsterreich 1946/126, 1947/24, 1948/25. BundesrechnungsabschluB fur die Republik Osterreich, Verwaltungsjahr 1946 und 1947,
ESTIMATED AND ACTUAL ORDINARY BUDGET RECEIPTS

[In Thousands of Schillings)

Monopolies and Federal Enterprises. 1946 Budget Estimate Actual Receipts Budget Estimate 1947 Actual Receipts

Table No. 20 1948 Budget Estimate

MONOPOLIES: Salt State Lottery Brandy Total Monopolies... FEDERAL ENTERPRISES: Postal & Telegraph Service Federal Forests Federal Printing Office Mint Federal Theatres Federal Pharmacies Total Federal Enterprises... Source: As before, Table 19. 9*

22,962.4 61,204.8 4,638.2 88,805.4 182,683.4 22,244.1 5,370.0 2,359.4 13,693.1 477.8 226,827.8

27,831.6 47,062.9 15,172.0 90,066.5 241,475.0 26,462.0 7,766.9 1,054.8 13,277.2 540.0 290,575.9

23,769.3 43,944.5 14,172.3 81,886.1 272,064.4 36,440.0 8,122.8 4,928.9 12,890.8 472.0 334,918.9

59,235.2 48,875.9 35,268.1 143,379.2 437,902.1 67,911.4 16,768.9 2,071.7 13,486.4 732.2 528,872.7

76,032.2 47,104.1 43,160.0 166,296.3 511,296.0

87,702.0
20,128.0
10,262.3
17,386.5
906.6
647,681.4

133

( I i Thousands of Schillings)

ESTIMATED AND ACTUAL ORDINARY BUDGET EXPENDITURES.

Table No. 21 1947 1948 Actual Expenditures

1

1946 Budget Estimate FEDEKAL ADMINISTRATIVE EXPENDITURES: Federal President and Federal Presidential Staff National Legislature Constitutional and Administrative Court Federal Accounting Office National Debt Service Local and Land Shares of Federal Tax Kevenues Pensions Federal Chancellory (Including Ministries of Foreign Affairs & Interior) Ministry of Justice Ministry of Education Ministry of Property Control & Economic Planing Ministry of Social Administration Ministry of Finance Ministry of Agriculture & Forestry Ministry of Trade & Reconstruction Ministry of Food Ministry of Energy & Electrification Ministry of Transport Postal Savings System Temporary Expenses o) Total Administrative Expenditures . . . MONOPOLIES: Salt State Lottery Brandy Total Monopolies . . , FEDERAL ENTERPRISES: Postal & Telegraph Service Federal Forests Federal Printing Office Federal Mint Federal Theatres Federal Pharmacies Total Federal Enterprises . . . a) Costs of liquidating German government agencies. Source: As before, Table 19. Actual Expenditures Budget Estimate

Budget Estimate

444.8 2,615.4 456.6 687.3 150,000.0 194,391.0 250,594.2 153,233.0 44,379.3 184,356.9 4,437.6 465,908.9 57,367.6 62,560.4 85,321.9 17,784.9 1,004.9 6,348.4 21,450.1 1,500.0 1,704,843.2 19,637.5 23,922.9 1,658.1 45,218.5 207,715.7 36,111.8 5,608.4 2,260.5 13,986.1 471.3 265,153.8

396.7 2,418.1 477.7 384.4 1.9 208,040.3 199,764.6 190,439.9 43,530.9 186,183.8 2,579.6 378,439.8 72,598.1 60,381.8 87,440.8 19,911.9 377.3 8,056.5 19,471.8 1,890.9 1,482,786.8 20,787.4 31,136.8 2,375.8 54,300.0 271,738.5 35,663.4 8,069.4 1,800.2 15,174.8 502.2 332,948.5

559.5 3,053.9 630.0 756.5 125,000.0 221,420.4 197,790.0 195,330.6 52,724.8 194,909.1 11,768.6 533,092.8 104,663.1 84,328.7 128,140.2 6,625.6 1,460.3 9,290.1 20,585.0
849.0

737.0 4,039.1 731.4 807.6 7.1 411,915.8 266,107.9 293,389.4 74,095.4 279,400.3 10,212.1 599,153.7 205,601.8 118,176.5 204,164.6 9,260.0 1,270.0 13,002.4 23,924.4 868.1 2,516,864.6 35,192.4 38,217.7 9,630.4 83,040.5 443,121.4 61,355.7 16,173.7 1,523.8 22,891.4 753.9 545,819.9

893.3 5,806.4 1,128.2 1,185.4 125,000.0 14,100.0 305,197.0 339,918.4 98,607.0 356,728.4 11,685.6 1,028,755.0 255,280.9 167,858.7 210,722.9 6,422.7 1,956.0 19,770.8 37,954.7 34,778.4 3,023,749.8 43,731.4 36,927.6 13,549.9
94,208.9

1,892,978.2 21,741.0 31,944.5 5,722.8 59,408.3 286,272.7 45,760.8 8,053.4 4,716.1 17,733.0 472.0
363,008.0

540,640.1 95,835.3 19,282.8 10,048.3 29,816.7 866.5 696,489.7

134

(In Thousands of Schillings)

TAX REVENUES COMPARED TO BUDGET ESTIMATES. 1946 Budget Estimate Actual Receipts Budget Estimate 1947 Actual Receipts

Table No. 22 1948 Budget Estimate

DIRECT TAXES Income Tax on Individuals Corporate Income Tax Nazi Atonement Tax Property Tax Trade Tax Excess Profits Tax '.' Fines

470,005.0 50,040.0 30,000.0 70,000.0 5.0 100.0 620,150.0 200,000.0 10,000.0 1.0 10,001.0

609,496.7 57,938.9 46,936.8 89,501.1 5,647.5 580.2 810,101.2 199,917.4 9,032.4 1,194.6 10,227.0

540,000.0 30,000.0 60,200.0 35,000.0 85,000.0

6,000.0

1,252,186.0 16,962.0 149,945.6 63,213.0 231,877.6 7,982.0 1,722,166.2 461,593.1 15,131.4 2,040.3 17,171.7

1,021,000.0 16,000.0 100,500.0 60,000.0 180,000.0

6,000.0

Total Direct Taxes SALES TAX CUSTOMS DUTIES Customs Fines & Interests on Duties Total Customs Duties EXCISE TAXES Tobacco Beer Wine Sugar Salt Mineral Oil Matches Playing Cards Vinegar Kerosene Reconstruction Surtax on Sparkling Wine Saccharine Fines Total Excise Taxes

756,200.0 265,000.0
20,000.0 600.0

1,383,500.0 700,000.0 10,000.0 1,000.0 11,000.0

20,600.0

623,600.0 45,000.0 6,000.0 6,000.0 2,000.0 1,000.0 300.0 300.0 200.0 100.0 50.0

503,021.7 36,200.4 2,884.6 2,334.3 6,548.0 1,213.3 563.0 422.7 36.4 485.9 232.7 53.8 94.9 554,091.7

579,000.0 35,000.0 18,000.0 5,000.0 6,000.0 10,000.0 1,000.0 500.0 50.0 300.0 100.0 10.0 100.0 655,060.0

1,070,512.0 32,596.6 24,149.1 8,028.3 6,910.1 869.2 3,376.1 308.0 60.0 1,319.5 362.1 21.0 1,627.9 1,150,139.9

1,311,100.0 40,000.0 30,000.0 13,000.0 6,000.0 1,000.0 2,000.0 300.0 100.0 1,500.0 300.0 500.0 1,405,800.0

584,550.0

135

Table No. 22 Cont'd 1946 Budget Estimate MISCELLANEOUS Stamp Duties Gambling Tax Inheritance Tax Real Estate Sales Tax Insurance Tax Patent Duties Capital Transfer Tax Fire Protection Tax Transportation Tax Vehicle Tax Fines Nazi Atonement Levy Total Miscellaneous Tax Collection Fees Total Tax Revenues Portion Allocated to Laender & Local Communities Revenues Retained by Federal Government Actual
Receipts
Budget Estimate 1947 Actual
Receipts
1948 Budget Estimate

44,000.0

10,781.0 8,295.1 1,482.9 5,766.8 272.6 646.9 1,907.3

31,880.4

8,000.0 3,000.0 5,000.0 1,000.0 1,000.0 1,000.0 4,000.0 3,000.0 500.0 70,500.0 400.0 1,485,601.0 70,000.0 1,415,601.0

39,150.0
4,600.0
7,000.0
1,500.0
7,500.0
600.0
2,800.0
29.000.0
6,500.0
100.0

81,168.8 7,003.6 18,554.7 9,135.8 8,408.7 2,438.6

2,980.6

100,000.0 5,300.0 14,000.0 7,000.0 7,500.0 1,000.0 3,000.0 50,000.0 12,000.0 100.0

8,654.6 5,775.6 75,463.2 1,743.8 1,651,544.3 92,010.8 1,559,533.5

45,419.0 13,307.5 251.7

98,750.0 1,000.0 1,796,610.0 85,000.0 1,711,610.0

188,669.0 1,914.5 3,541,654.4 171,792.4

3,369,862.0

199,900.0 2,000.0 3,702,200.0 1,184.380.0 2,517,820.0

Source: Bundesgesetzblatt fur die Republik Osterreich 1946/126, 1947/25. BundesrechnungsabschluB fur die Republik Osterreich: Verwaltungsjahr 1946 and 1947.

136

(In Percent)

COMPONENTS OF ACTUAL TAX REVENUES a) 1937 1946

Table No. 23 1947 Non-Serviceable at the End of

AUSTRIAN FEDERAL RAILROADS WAR DAMAGE RECONSTRUCTION OF RAILROAD FACILITIES Electr. Mileage Catenary Brid Wire (Mis) ges Loco motive Water Columns 97 54 48 42 39 37 37 37 33 31 Table No. 24 Buildings (1,000 cubic yards)

DIRECT TAXES Income Tax on Individuals Nazi Atonement Tax Corporate Income Tax Property Tax Trade Tax Excess Profits Tax Fines Others Total Direct Taxes .. SALES TAX CUSTOMS DUTIES & Customs Fines and Interest on Duties EXCISE TAXES Beer Wine Sugar Salt Mineral Oil Others Subtotal
Tobacco
Total Excise Taxes . . MISCELLANEOUS Stamp Duties Gambling Tax Inheritance Tax Real Estate Sales Tax Insurance Tax Transportation Tax Vehicle Tax Others Total Miscellaneous .. Taxpayer Payments of Tax Collection Costs. TOTAL TAX REVENUES o) Including local and land shares.

9.1 5.7 0.9 3.0 0.4 10.2 29.3 25.3 17.3 3.5 1.2 4.6

36.9 3.5
2.8 6.4 0.4 0

35.4 0.5 4.2 1.8 6.5

0.2

Tun nels

Turn tables

Control
Towers

WorldWar II 1945 1st 2nd 3rd 4th 1st 2nd 3rd 4th Q Q Q Q Q Q Q Q 1946. 1946. 1946. 1946. 1947. 1947. 1947. 1947.

1,588.0 130.0 101.1 72.4 64.5 45.7 45.7 44.5 39.8 30.3

249 76 63 44 32 16 3 3 3 2

381 56 52 51 43 33 33 33 28 22

4 2 2 2 2 .

44 28 25 23 22 22 22 21 21 20

262
180 159 137 121 106 101 91 76 69

6,775 6,450 6,112 5,578 5,084 4,668 4,475 4,225 4,039 3,874

49.0 12.1
0.6

48.6 13.0 0.5 0.9 0.7 0.3 0.2 0 0.2

2.3 30.2

7.0 16.3 16.3 9.2

2.2 0.2 0.1 0.4 0.1 0.1 3.1 30.5

33.6

Source: Austrian Federal Railroads.

32.5 2.3 0.2 0.5 0.2 0.2 1.3 0.4 0.2 5.3 0.1 100.0

0.7

1.8 0.1 0.4 11.5 0.3 100.0

0.5 0.1 0.4 1.9 0.5 0.5

4.6

0.1 100.0

137

AUSTRIAN FEDERAL RAILROADS MILEAGE

Table No. 25 Mileage according to Operating Divisions

Total Mileage End of Total 1937 1946 1947

x

Vienna

Linz

Innsbruck

Villach

Standard Gauge Narrow Gauge Standard Gauge Narrow Gauge Standard Gauge Narrow Gauge Standard Gauge Narrow Gauge Standard Gauge Narrow Gauge
x

3,680.4 3,773.5 \ 3,773.5

3,372.6 3,452.0 ^ 3,452.0

310.8 321.5 .321.5

1,351.0 1,602.7 1,602.7

151.8 200.0 200.0

802.6 736.6 736.6

75.5 70.7 70.7

431.2 302.5 302.5

54.7 22.0 22.0

784.8 810.2 810.2

28.8 28.8 28.8

Source: Austrian Federal Railroads. EMPLOYMENT Number of Railroad Employees on Payroll Total of all Employees of General Management and Subsidiary Offices (Vienna) e 2,000 e 1,498 1,495 of Operating Divisions Total Vienna Linz Innsbruck Villach Total Retired Employees Receiving Pension Table No. 26 Average Monthly Gross Earning by Employees (Austrian Schillings) Average of Salary and Wage Earners Salary Earners (Officials) Wage Earners (Clerks and Workers)

1937 M.A. .. 1946 M.A. .. 1947 M.A. ..

56,903 104,830 96,688

e 54,900 e 103,332 95,193

e 26,200 e 50,020 46,614

e 10,750 e 22,810 21,232

e 8,000 e 9,340 8,692

e 9,950 e 21,162 18,655

80,911 e 75,700 77,078

311 206 486

N.A. 319 554

N.A. 123 441

Monthly Average Number of Employees per 100 Miles of Line Operating Divisions Entire System a) Vienna 1937 M.A. .. 1946 M.A. .. 1947 M.A. .. 1,546 2,789 2,673 e 1,743 2,779 2,589 Linz e 1,220 2,845 2,648 Innsbruck e 1,648 2,871 2,672 Villach e 1,223 2,546 2,244 73.8 202.0 150.3

Monthly Average Number of Employees per Million Gross Ton Miles Hauled Operating Divisions Entire System Vienna N.A. 302.5 217.1 Linz N.A. 145.0 114.7 Innsbruck N.A. 109.1 76.2 Villach N.A. 191.0 144.3

a) Including employees of General Menagement. Source: Austrian Federal Railroads.

138

AUSTRIAN FEDERAL RAILROADS <!In Thousands of Schillings) G E N E R A L Operating Revenues (Sum of Columns 6 and 9) 1 1937 1946 1947 475,395 433,119 770,785 Operating Expenditures (Sum of Columns 10 and 15)' 2 471,142 601,261 1,063,080 REVENUES AND EXPENDITURES ACCOUNT Operating Profit ( + ) or Loss () (Column 1 minus Column 2) 4 4,253 + 168,142 292,295 O P E R A T I N G Traffic Revenues Net Profit ( + ) or Passenger Traffic Loss () (Sum (Column 1 minus of Columns 7 and 8) (incl. Baggage and Express Freight) Columns 2 and 3) 5 20,443 301,762 611,918 6 456,562 408,948 731,620 7 139,264 266,194 339,455 E X P E N D I T U R E S ) Miscellaneous Expenditures (Sum of Columns 16 to 19) 15 118,842 189,627 250,905 Fuel, Operating Materials, Inplements and Accessories 16 21,400 52,038 143,124 Maintenance of Ways and Structures 17 42,426 44,819 38,566 Maintenance of Shops and Equipment 18 37,616 35,523 15,911 R E V E N U E S Table No. 27

Period

Extraordinary Expenditures (Sum of Columns 20 and 24) 3 24,696 133,620 219,623

Freight Traffic

Miscellaneous Revenues

8 317,298 142,754 392,165

9 18,833 24,171 39,165

O P E R A T I N G Personnel Expenditures Period (Sum

of Columns
11 to 14
10
1937 1946 1947 352,300 411,634 812,175

E X P E N D I T U R E S

( O R D I N A R Y

Salaries

Wages

Pensions

Other

Miscellaneous

11 212. 636 168,563 257,829

12

13 139,664 150,262 241,708

14 0 2,617 6,461

19 17,400 57,247 53,304

90,192 306,177

E X T R A O R D I N A R Y Reconstruction of War-Damages Period (Sum

of Columns 21 to 23)
20
1937 1946 1947 0 130,806 195,689 Source: Austrian Federal Railroads. Ways and Structures 21 0 99,106 158,083 Shops and Equipment 22 0 31,p700 37,(506

E X P E N D I T U R E S New Construction and Improvements, Purchases beyond Normal Replacement

Miscellaneous 23 0 0 0

(Sum of Columns 25 to 28) 24 24,696 2,814 23,934

Ways and Structures 25 9,397 0 0

Shops and Equipment 26 664 0 0

Electrification of Steam Operated Railroad Lines 27 14,635 2,814 23,934

Miscellaneous 28 0 0 0

139

AUSTRIAN FEDERAL RAILROADS PASSENGER TRAFFIC Passenger Transportation Period Passengers Carried Passenger Miles Operated Table No. 28 (In Metric Tons) Baggage and
Express Freight
Carried
Long Tons 1,492,000 e 3,650,000 2,203,000 1947 522,000 N.A. 78,039 82,490 1947 3,014 2,402 3,395 5,340 6,532 6,785 8,788 11,183 10,471 9,832 7,785 6,963

AUSTRIAN FEDERAL RAILROADS

FREIGHT TRAFFIC VIA AUSTRIAN RAILROADS 1936
According to Commodity Groups Table No. 29 716,093 334,092 328,256 260,870 189,754 170,642 89,769 47,032 32,898 30,519 22,170 19,644 286,223 Total... 2,527,952

Thousands

1937.
1946.
1947.

Jan . Feb . Mar. Apr . May Jun . Jul . Aug. Sep . Oet . Nov Dec .

59,512 e 130,000 92,088 1947 22,141

Coal, Coke and Other Fuel Food and Foodstuff Lumber and Wood Products Building Materials Ores Feed and Feed Products Iron, Steel and Metal Products, Rails, Machinery Chemical Products Pig Iron Paper and Paper Products Textiles and Raw Materials Livestock Miscellaneous

37,525

902,000

Source: Statistical Yearbook for Austria 1938, p. 150 (Statistisches Jahrbuch fur Oster reich 1938).

32,422

779,000

Source: Austrian Federal Railroads.

140

AUSTRIAN FEDERAL RAILROADS

(In Thousand Long Tons)

FREIGHT TRAFFIC F R E I G H T T R A N S P O R T A T I O N

Table No. 30

Period

Revenue Freight Traffic Total Internal Traffic N.A. 10,388 16,035

Cars Ordered (Thousands) Transit Total Standard Gauge 1,670.1 1,190.0 1,253.4 Narrow Gauge
73.6 30.0 43.6

Cars Loaded (Thousands) Total Standard Gauge 1,670.1 707.1 837.5 Narrow Gauge 73.6 29.3 42.5

Cars Ordered Cars Loaded during an Average Work-day 5,774 4,040 4,295 5,744 2,431 2,924

Import
N.A. 2,910 4,589

Export

Average Car Turnaround Time (Days) 4 16 11

1937 1946 1947

27,311 15,019 24,084

N.A. 683 999

N.A. 1,038 2,461

1,743.7 1,220.0 1,297,0

1,743.7 736.4 880.0

F R E I G H T
Period Freight Train Miles (Thousands)

T R A I N

O P E R A T I O N S a)

Freight Car Axle Miles Made by All (Freight, Mixed and Passenger) Trains (Thousands) Loaded 414,339 294,771 386,950 Empty 233,456 177,618 223,019 Net Ton Miles Made by Freight Trains (Millions) All Cars Freight, Baggage, Caboose, and Postal Cars N.A. 1,803.3 2,672.6 Passenger Cars N.A. 8.8 9.2

Car Axle Miles Made by Freight Trains (Thousands) b) Total Car Axle Miles Freight Car Axle Miles Loaded N.A. 282,614 377,752 Empty N.A. 176,273 221,838 & Caboose Car Axle Miles N.A. 9,469 11,545 Postal Car Axle Miles Passenger Car Axle Miles

1937 j 1946 | 1947.....!

12,377 7,611 9,365

665,635 480,518 624,387

N.A. 552 1,857

N.A. 11,610 11,395

e 2,570.0 1,812.1 2,681.8

F R E I G H T
Freight Car Net Ton Miles Made Gross Ton by All (Freight Miles Made by Mixed and Pas- Freight Trains senger) Trains (Millions) (Millions) 2,600.0 1,850.9 2,715.5 6,020.2 4,065.9 5,661.2

T R A I N

O P E R A T I O N S

( C O N T'D.) o)

Average Gross Tons per Freight Train Average Net Tons per Freight Car (all Trains) Loaded Freight Car Haul Empty Freight Car Haul

Average Number of Car Axles per Freight Train Freight Car Total Loaded Other Cars Empty

Average Net Tons per Freight Train Freight, Total Caboose, and Postal Cars N.A. 236.9 285.4 Passenger Cars

Period

In Percent of Total Haul 64.0 62.4 63.4

36.0 37.6 36.6

1937 1946 1947

53.8 63.1 66.7

N.A. 37.1 40.3

N.A. 23.2 23.7

N.A. 2.8 2.7

N.A. 238.1 286.4

N.A. 1.2 1.0

486.4 534.2 604.5

N.A. 12.6 14.0

a) Including mixed Trains. 6) The Austrian Federal Railroads report statistics on "Car Axle" basis ("car axle" is the term used for a pair of wheels) instead of car basis which would not give a true picture since size and

capacity of cars vary with the number of wheels employed, as there are 4, 6, and 8 wheel cars available in Europe. Theoretically, 4 car axle miles would mate a car mile according to US standards. Source: Austrian Federal Railroads.

141

AUSTRIAN FEDERAL RAILROADS (In Units) STANDARD GAUGE ROLLING STOCK AVAILABLE ON LINES o) TYPES As of All Freight Train Equipment Box Cars, except Refrigerator Cars Total Serviceable Gondolas (High Side and Low Side) Total Serviceable Flat Cars Total Serviceable N.A. 4,635 2,057 1,869 13,301 8,745 8,119 Refrigerator Cars Total Serviceable N.A. N.A. 546 758 N.A. 310 473 3,579 h) 4,577 4,126 Others (Special Type Cars and Non-Revenue Equipment) Total Serviceable N.A. 2,403 h) 3,363 3,121 Table No. 31

Tank Cars Total Serviceable N.A. 8,753 6,862 6,557 TYPE S

Total 31 Dec 1937 b)

Serviceable

32,136 110.178 g) 76,104 g) ^67,676

e 28,500 81,026 g) 53,177 g) 50,514

13,821 33,760 g) 23,832 g) 19,202 i)

N.A. 23,516 g) 14,943 g) 12,644)

18,315 53,453 35,559 32,852

N.A. 41,719 25,642 25,850

<0
6,085 2,845 2,619

Dec 1945 /) ... 20 Aug 1946 .. 28 Sep 1947 . .

All Passenger Train Equipment As of Total 31 Dec 1937 b) Dec 1945 /) . . . 13 Aug 1946 .. 21 Sep 1947 ..
7,788

Passenger Coaches Serviceable

e 6,700

Special Passenger Equipment, Pullman Sleeping & Dming Cars Total N.A. 142 323 417 Serviceable N.A. 69 155 272 Total 1,788

Baggage and Postal Cars Serviceable N.A. 1,573 1,113 609

Total
6.000

Serviceable N.A. 3,829 3,052 3,043

12,694 j) 8,977 j) 7,647

5,471 4,320 3,924

9,355 6,343 6,044

3,197 j) 2,311 j) 1,186

a) The ownership status of all available post-war equipment is uncertain; only equipment bought after May 1945 is actually of Austrian ownership. b) Austrian Federal Railroads1 property only. c) Included in column "Gondolas" which in this case includes all types of open equipment. d) Included in column "Box Cars". e) Included in ,,Box Cars" and ,,Gondola Cars". Source: Austrian Federal Railroads.

f) Theoretical figures arrived at by combining figures of car census in three Western Zone8 on 4 November, and car census in Soviet Zone on 28 December 1945. g) Excluding box cars temporarily used as baggage cars (number not available). h) Including refrigerator cars (number not available). i) Including 1,041 (serviceable 488) box cars temporarily used as baggage cars. j) Including box cars temporarily used as baggage cars (number not available).

142

AUSTRIAN FEDERAL RAILROADS

(In Thousands of Miles) M I L E A G E

LOCOMOTIVE OPERATIONS a)

Table No. 32

O P E R A T E D

BY

ALL

L O C O M O T I V E S Total Locomotive Miles

Period

Revenue Miles (Passenger Train, Freight Train and Helper Service) Locomotive Type Total Steam Electric 7,658 5,992 6,668 Others c) N.A. 508 507

Non-Revenue Miles (Light Locomotive Movements, Switching and Stand-by Locomotives) b) Locomotive Type Total Steam 9,960 11,056 9,982 8,599 9,443 8,105 Electric 1,361 1,553 1,814 Others c) N.A. 60 63 ^ ^ 45,062 30,221 29,124 Total

Locomotive Type Steam 36,043 22,108 20,072 Electric 9,019 7,545 8,482 Others c) N.A. 568 570

1937 1946 1947

35,102 19,165 19,142

27,444 12,665 11,967

a) Including motor coaches. I) Theoretical figures which are calculated at a rate of 4.35 miles (7 kilometers) per hour of switching service and 1.243 miles (2 kilometers) per hour of stand-by service (only steam locomotives), respectively. c) Internal combustion engine powered units. Source: Austrian Federal Railroads.
LOCOMOTIVE FUEL AND LUBRICANT CONSUMPTION

Table No. 3a Consumption of Lubricants and Greases Total Consumption (Long Tons) Average Consumption per 1,000 Locomotive Miles (Pounds) 108.1 88.7 94.7

Consumption of Solid Fuel (Bituminous Coal Basis) a) Period Total Average Consumption Consumption per 1,000 Locomotive (Thousand Long Tons) Miles (Long Tons) 839 782 831 23.4 35.4 41.3 Average Consumption per 1,000 Gross Ton Miles (Pounds) 262 313 356 Total Consumption (Million KWH) 170.7 132.9 167.9

Consumption of Electric Power Average Consumption Average Consumption per 1,000 Locomotive per 1,000 Gross Ton Miles (KWH) Miles (KWH) 18,925 17,333 19,789 93.5 66.9 64.9

1937 1946 1947

2,230 1,229 1,231

a) Theoretical figures arrived at by converting the actual amount of individual types of solid fuel into that amount which would produce the same heat at the BTU rate of average bituminous coal. Source: Austrian Federal Railroads.

143

HIGHWAY TRANSPORT

HIGHWAY TRANSPORT

(In Miles) Area

AUSTRIAN HIGHWAYS 1936

Table No. 34 Local

AUSTRIAN FEDERAL RAILROAD BUS SYSTEM

Table No. 36 Revenue Passengers

Total

Federal State County 0 228 8,669 1,623 0 1,873 0 0 0 12,393 i Municipal 775 1,771 6,214 9,929 1,117 12,035 1,513 2,216 1,755 37,325 Period

Miles of Line in Operation M.A.

Total Buses in Operation M.A. 231 21 68 87

Total Miles Operated Thousands Total 4,604 331 1,683 2,244 M.A. 384 41 140 187

Vienna Burgenland .. Lower Austria Upper Austria Salzburg Styria Carinthia Tyrol Vorarlberg . . . All Austria.

775 2,423 15,356 12,069 1,577 14,425 2,284 2,632 1,848 53,389

0 202 473 474 231 517 354 416 93

2,760

0 222 0 43 229 0 417 0 0 911

Total 5,410 1,416 8,116 11,633

M.A. 451 177 676 969

1936 1945 a) 1946 1947

1,719 421 886 1,122

a) 8 months only. Source: Austrian Federal Railroads.

Source: Statistical Yearbook for Austria 1938, p. 144.

AUSTRIAN POST OFFICE BUS SYSTEM

Table No. 37 Gross Kevenues 1000 Schillings Total N.A. 4,447 23,459 38,583 M.A. N.A. 556 1,955 3,215

(In Units) Land

AUSTRIAN HIGHWAY VEHICLE REGISTRATIONS 1947

Table No. 35 Period Motorcycles 7,135 16,697 19,623 4,532 10,701 5,399 6,356 4,142 1,725 1936 1945 a) 1946 1947

Miles of Line in Operation M.A. 4,289 2,553 5,597 6,658

Total Buses in Operation M.A. N.A. 160 384 434

Total Miles Operated Thousands Total 4,885 1,556 6,931 7,025 M.A. 407 194 57S 565

Total

Passenger Cars 6,675 4,368 6,175 2,234 3,317 2,138 2,443 1,235 337

Buses

Trucks a) 11,571 4,937 5,912 1,766 4,391 1,638 2,111 771 661

Tractors

Special Vehicles 383 111 373 149 419 152 264 43 25

Vienna Lower Austria . . . . Upper Austria . . . . Salzburg Styria Carinthia b) Tyrol c) Vorarlberg Burgenland Total...
N

26,513 29,257 34,604 9,258 20,015 9,934 11,826 6,557 3,266 151,230

308 104 365 90 260 24 225 8 35

441 3,040 2,156 487 927 583 427 358 483 8,902

a) 8 months only. Source: Austrian Post and Telegraph Administration.

28,922

1,419

33,758

1,919

76,310

o) Including 3-wheel vehicles.

b) Including East Tyrol.
c) Excluding East Tyrol.
Source: Austria Central Statistical Office.

144

HIGHWAY TRANSPORT (In Units) AUSTRIAN HIGHWAY VEHICLE REGISTRATION 1937 A U T O M O B I L E S Position Total Passenger Cars Special Cars 6) Table No. 38

T
Trailers a) Tractors

Three-wheel Motor Vehicles Pass. j Freight

Taxi Cabs

Buses

Trucks

Motorcycles Small Motor cycles c)

A. A c c o r d i n g Vienna Lower Austria Upper Austria Salzburg Styria Oarinthia d)... Tyrol e) Vorarlberg Burgenland . . . Total. 23,952 9,574 4,459 1,766 4,940 1,828 2,074 1,316 738 50,647 13,853 4,811 2,525
970 2,703

to

P o s i t i o n 930 442 304 107 196 52 112 52 29

2,223

974 1,111 773 361 28,081

2,167 621 410 215 376 170 220 79 44 4,292

1,118 438 207 95 231 112 103 44 44 2,392

6,208 3,140 1,070 392 1,318 485 550 400 254 13,817

49 59 53 13 27 10 15 5 3 234

567 506 194 81 285 77 76 15 32 1,831

5,562 2,516 652 262 1,082 341 265 136 175 10,980

949 117 52 28 52 12 18 6

10,350 14,142 7,104 2,138 6,990 2,038 2,572 1,594 964

47,892

1,647 1,959 727 309 868 323 449 150 177

6,609

1,234

B. A c c o r d i n g Austria America Belgium Germany England France Italy Sweden Switzerland . . . Czechoslovakia Hungary Total.

t o C o u n t r y

o f

O r i g i n 10 152 63 1 7 1 1,591 25 2 81 2 15 55 1 56 3 234 1,831 2,753

2,096

34,910 3,269 134 3,326 546 2,030 3,160 5 1 3,245 22 50,647

16,119 2,330 109 2,606 517 1,549 2,596 5 2,246 4 28,081

3,585 102 6 131 3 110 141 . 214 4,292

2,324 6 10 1 21 5 25 2,392

11,281 654 17 434 22 326 362 704 16 13,817

2,072 6 70 3
O Q

59 5 2,223

679 2,272 2,874 218 31 18 36 * 3

1,163 4 1 14 9 1 1

28,623 624 2,805 5,163 9,569

726

5,620 3 775 113 74 3 1 11 9

41

134 2 228 27 2 47,892

10,980

1,234

6,609

a) Not included in the total. i) Ambulance, fire department and tank cars, electric cars, etc. Source: Statistical Yearbook for Austria 1938, p. 154.

c) Below 200 cubic centimeters.

d) Excluding East Tyrol.

e) Including East Tyrol.

10

145

WATER TRANSPORT SHIPPING ON THE AUSTRIAN STRETCH OP THE DANUBE 1986 (In Metric Tons) Table No. 39 Goods Traffic in Vienna Commodity Loaded Of this, with Destination Downstream Unloaded Of this, with Origin from Upstream Transit Traffic Lower Austria Vienna Fischamend . . . Klosterneuburg Other Ports . . . Port

WATER TRANSPORT SHIPPING ON THE AUSTRIAN STRETCH OF THE DANUBE Goods Traffic of the Different Ports in 1986 (In Metric Tons) (Import, Export and Transit Traffic) Loaded

Table No. 40 Unloaded

Grains and Pulses Flour and Milling Products Fruits, Vegetables, Potatoes | Sugar ! Wine, Beer ' Other Foof-stuffs I Industrial Timber and Fire Wood i Wooden Articles, Tools Coal, Coke, Peat Gasoline ; Kerosene : Other Industrial Fats and Oils . Ore, Minerals Crude Iron and Other Metals . Iron Mongery and Hardware .. Machines, Vehicles Stones, Bricks, Sand, Lime Glass, Porcelain, Pottery Chemical Products Resin, Tar, Rubber Products .. Hides, Leather, Leathergoods . Wool, Hemp, Jute Textiles, Ready-made Clothes . Paper and Wood Pulp Miscellaneous Total 1936...

7,222 13,075 924 332 862 3,498 10,164 1,119 764 3,924 594 5,696 1,984 2,950 14,978 3,240 1,702 937 7,968 3,452 3,006 3,999 9,285 69,777 8,316 179,768

351 194,321 192,285 824 68,289 63,353 1,899 213 1,485 331 2,807 2,807 36 6 ! 172 261 ; 23,550 6,631 8,429 22,111 4,493 726 169 985 228 48,437 53,670 43 17,209 10,021 218 120,567 115,130 13,036 1,501 3,551 1,906 3,866 2,760 10,564 2,635 16,987 6,172 1,794 12,794 3,238 2,321 340 48,692 55,707 1,635 92 924 759 4,797 4,019 16,565 970 3,034 6,265 3,693 1,111 1,405 2,406 3,734 5,865 990 i 319 8,815 34,865 1,745 68,272 10,689 55,257 5,737 133,588 727,659 ' 532,627

34,801 23,223 219 a) 1 105,952 b) 7,960 187 3,809 55,318 12,410 4,613 91,562 12,986 34,444 9,552 3,336 3,104 18,979 7,205 7,645 34,506 884 9,481 | 61,969 544,146

179,768 48,253 17,956 41,727 Total Lower Austria . . .

287,704

727,659 1,068 24,366 17,037 770,130

Upper Austria Linz Grein Other Ports Total Upper Austria . . . AU Ports . . .

86,085 46,929 28,973

: 149,867 35,453 13,345 161,987 j 449,691 198,665 968,796

Source: Statistical Yearbook for Austria 1938, p. 145.

a) Included in "Other Food-stuffs."

6) Including 80,797 tons of salt.
Source: Statistical Yearbook for Austria 1938, p. 146.

146

WATER TRANSPORT (In Metric Tons) Firm TONNAGE MOVED VIA DANUBE RIYER IN 1936 a) F O R E I G N Total Tannage Inland Traffic Loaded DDSG Comos Czechoslovakian Shipping Co Jugoslavian Shipping Co Others 1,271,846 131,102 139,949 76,764 177,877 108,056 5,678 1,903 1,204 48,253 165,094 172,477 21,976 13,678 14,831 61,635 284,597 Unloaded 516,416 65,296 94,271 60,729 67,989 803,701 Total 687,893 87,272 107,949 76,560 Upstream Downstream Total T R A F F I C T R A N S I T Table No. 41 T R A F F I C

] |

249,039 10,062 26,814

226,858 28,090 3,283

476,897 38,162 30,097

129,624
1,088,298 285,915 258,231 544,146

1,797,538
a) Actual freight handled at Austrian Danube ports was 1,418,486 Tons. Source: Statistical Yearbook for Austria 1938, p. 145.

PASSENGER TRAFFIC ON AUSTRIAN LAKES AND THE DANUBE IN 1936 Lakes in

Table No. 42 Stone Transport (100 tons) Total 1937.... 1946.... 1947.... 97.50 160.38 174.55

RIVER CONSTRUCTION OFFICE OPERATIONS (RIVER AND HARBORS) Slope Crown Stair ! Dredging Pavement (100 cubic meters) (100 meters) River 121.00 280.32 190.84 j Harbor N.A. N.A. N.A. River N.A. 16.40 0 ! Harbor N.A. 302.20 358.00 Repair & Construction of Craft (100 tons) 14.00 42.50 24.65

Table No. 43 Planeing Opera tions (Leveling and filling) (100 cubic meters) N.A. 200.00 296.50

Period Vorarlberg (Lake Constance) Upper Austria Salzburg Carinthia Tyrol Styria All Lakes Danube . All Lakes and Danube 277,376 139,361 109,856 92,804 26,066 7,962 653:425 645,438 1,298,863

Source: River Construction Office, Linz.

Source: Statistical Yearbook for Austria 1938, p. 148 and private shipping agencies (for Danube passenger traffic).

147

MUNICIPAL TRANSPOBT VIENNA Summary of War Damages

COMMUNICATIONS

Table No. U War Damaged or Destroyed Scrapped or Rebuilt to 31 May 1946 1,587
14
137
7
1
42

AUSTRIAN POST AND TELEGRAPH ADMINISTRATION

(In Million of Schillings) REVENUE AND EXPENDITURE

Table No. 46
Profit (-f) or Loss () -f 17.17 29.27 5.22

Description

Total 1938

Period

Revenue

Expenditure

Passenger Cars Motor Busses Overhead Lines, miles Single Track, miles Bridges Lines Operated B u i l d i n g s
Stations Workshops Garages Elevated Shops

3,635 83 410 410 109 56

2,126 83 a) 162 7 17 56

1936 1946 1947 1947

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

230.02 241.47 437.90

212.85 271.74 443.12

|
I

19 14 8 33

16 11 6 30

0
3
2
5

a) Note: 69 of these taken by Germans.

Source: Vienna Municipal Transport System.
Table No. 45
Revenue Passengers

25.08 18.19 23.27 27.32 28.12 28.81 29.87 34.40 47.14 56.11 62.92 57.67 Source: Austrian Post and Telegraph Administration.

Vienna Street Car and Rapid Transit System

24.41 23.84 27.45 26.00 32.38 30.08 34.53 43.73 41.79 51.68 50.73 56.50

0.67 5.65 4.18 1.32 4.26 1.27 4.66 9.33 5.35 3.43 12.19 1.17

Period

Miles of Line in Operation M.A.

Units in Operation M.A. 2,449 952 1,562 1,576

Miles Operated

Thousands Total 79,077 31,240 61,309 66,495 M.A. 6,590 2,059 512 554 Total 495,691 331,431 606,992 637,629 M.A. 41,308
27,619
50,583
53,136

1938 1945 a) 1946 1947

195 66 133 156

a) 8 months only. .
Source: Vienna Municipal Transport System.

148

COMMUNICATIONS PERSONNEL OF THE AUSTRIAN POST AND TELEGRAPH

ADMINISTRATION

COMMUNICATIONS

(In Thousands) Table No. 47 Period

PARCEL POST

Table No. 49 I n t e r n a t i o n a l

P e r s o n n e l End of Total Officials Others a) Full Time Part Time

E m p l o y e d Listed as Employas, still Held as Prisoners of War

Total Posted a) Outgoing Incoming 64 26 86 M.A.

N.A.

Laborers

M.A. 1936 M.A. 1946 M.A. 1947 1947 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

1,083 190 815

62 0 16 M.A. b)

Dec Apr Dec Dec Dec

1936 1945 1945 1946 1947

! 26,251 ! 57,859 | 44,385 39,812 41,736

20,145 1,649 N.A. ; N.A. N.A. I N.A. 21,966 12,371 N.A. ! N.A.

2,875 N.A. N.A. 832 N.A.

987 N.A. N.A. 4,643 N.A.

0 N.A. 10,626 3,619 996

a) Includes civil servants, local postmasters, apprentices. Source: Austrian Post and Telegraph Administration.

[In Thousands) Period and Type

LETTER MAIL 1936, 1946 AND 1947

Table No. 48 TOTAL

530
613 839 749 655 702 821 856 970 1,052 927 1,071 o) Including outgoing international parcel post.
V) Counting is effected only quarterly. Source: Austrian Post and Telegraph Administration.

N.A.

65 11

94

32

99

I Inland

I n t e r n a t i c n a 1
Incoming Outgoing 107,940 150 108,090 35,488 1,955 37,443 48,709 1,225 49,934 Transit 760 0 760 3,465 2,115 5,580 142 0 142 763,060 7,350 770,410 615,387
13,256
628,643 478,429
5,414

483,843

!
1 QQ R

Regular Mail Official Mail a) . . . . Total... Regular Mail Official Mail Total...

587,260 6,930 594,190 528,418 7,523 535,941 390,542 3,744 394,286

67,100 270 67,370 48,016 1,663 49,679 39,036 445 39,481

Regular Mail Official Mail Total...

a) Official mail in Austria goes free of charge. Source: Austrian Central Statistical Office and Post and Telegraph Administration.

10*

149

COMMUNICATIONS TELEPHONE OPERATIONS

COMMUNICATIONS

Table No. 50 of

(In Thousands)

TELEGRAPH TRAFFIC

Table No. 52 I n t e r n a t i o n a l

N u m b e r End of Period Local Telephone Exchanges 1,830 1,936 N.A. 1,999 Pay Stations Advance Booking Offices 2,112 2,264 N.A. 2,316

Period Extensions All Lines in Service M.A. 1936 M.A. 1946 M.A. 1947 1947 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Total Messages Outgoing a) Incoming

Maine Lines in 194 172 182 197

T h o u s a n d 85 103 N.A. Ill 279 275 N.A. 308

217 437 506 420 407 475 467 525 556 655 645 525 456 455 483

64 36 48.7 40 36 46 49 49 49 53 52 53 51 49 57

72 29 41 34 31 39 38 41 42 45 43 46 45 41 48

Bee Dee Jun Dec

1936. 1946. 1947. 1947.

4,333 3,390 N.A. 2,223

Source: Austrian Post and Telegraph Administration. TELEPHONE TRAFFIC, LONG DISTANCE CALLS Total Calls Period Million Minutes M.A. 1936 M.A. 1946 M.A. 1947 1947 Jau Feb Mar Apr May Jun Jul Aujr Sep Oct Nov Doc | ! 12.0 10.6 14.7 13.7 13.8 14.0 15.4 16.3 14.5 14.2 12.9 13.0 \ ! | j i ; | i i | : 61,2 63.6 70.0 67.8 77.6 80.4 82.5 74.6 87.3 96,9 99.4 99.1 54.4 53.2 60.1 59.0 62.6 63.1 64.1 55.5 64.7 64.3 66.6 69.1 : 2.3 10.4 13.8 289 43 80 Outgoing a) Incoming Thousand Minutes 355 31 61.5 Table No. 51

International

i I

a) Included in "Total Messages". Source: Austrian Post and Telegraph Administration.

| ! I

a) Included in "Total Calls". Source: Austrian Post and Telegraph Administration.

150

AIR OPERATIONS OELAGa) 1930 to 1987 Year Miles Flown Passengers Carried Table No. 63 Freight Carried (Thousand Metric Tons) Country 1930 1931 1932 1933 1934 1935 1936 1937 453,205 411,952 324,551 341,520 311,929 328,610 387,068 494,021 7,869 9,192 9,908 11,410 4,896 11,724 15,4'67 19,501 117 130 113 160 89 129 176 434

RESTITUTIONS STATUS OF RESTITUTION CLAIMS Claims Received 31 December 1946 Austria Belgium Brit. Subjects Bulgaria Czechoslovakia . . . . France Germany Greece Hungary Italy .' Luxembourg Netherlands Norway Poland Rumania Soviet Union Turkey UNO US Citizens Yugoslavia i : | i | i , [ [ 31 4 0 1 304 69 8 1 576 106 1 77 2 110 12 4 0 0 0 63 1947 98 43 8 1 394 328 34 5 1,146 142 1 121 2 172 25 24 1 2 38 180 2,765 100 Claims Dropped or Disallowed (a 31 December 1946 0 1 0 0 208 11 0 0 3 0 1947
3 14 1 0 270 i ! i I !

Table No. 54 Claims Pending 31 December 1946 0 2 0 1 78 36 2 0 541 100 0 38 2 48 12

2 0 0 0 43

Restitutions Completed 31 December 1946

31 1 0 0 18

1947 46
o

1947 49 27 6 0 80 187 22 2 742 35 0 41 1 46 21 8 0 0 31 71 1,369 49

1 1 44 85 12 120 14 0 36 1 78 4 11 0 2
0 60

a) Austrian Air Line Company (Oesterreichische Luftverkehrs-Aktiengesellschaft). Source: US Allied Commission Austria.

0
o

288 89 1 44 0 48 0 5 1 0 7 48
878

22 6 1 32 6 0 31 0 39 0
2 0 0 0

;
:

0 23 0
0 0 0 0 9

11 200 15

Total.. | 1.869 Percentages i 100

264 19

518 19

905
66

32

% Completion o! Restitution Program: 31 December 1946 = 34% 31 Deeember 1947 51% a) Claims dropped or disallowed because of duplication, location outside US Zone of Austria or failure to substantiate claim. Souce: US Allied Commision Austria.

151

RESTITUTIONS
(In US Dollars) ESTIMATED EVALUATION OF COMPLETED RESTITUTIONS IN US ZONE AUSTRIA
Values based on US Dollar Prices Art Country 31 December 1946 Austria Belgium British Subjects Bulgaria Czechoslovakia France Germany Greece Hungary Italy Luxembourg Netherlands Norway Poland Rumania Soviet Union Turkey UNO US Citizens Yugoslavia Total... Percentages... 61,618,500 20,000 0 0 32,900 813,450 1,257,000 0 1,000,000 2,020,000 0 1,057,000 0 1,110,000 0 0 0 0 0 5,000 68,933,850 72.9 1947 141,620,800 20,000 0 0 56,400 1,011,850 1,297,000 0 1,377,000 2,020,000 0 1,107,500 0 1,110,000 0 300 0 0 0 5,000 149,625,850 79.3 Industrial Equipment 31 December 1946 0 0 0 0 91,450 1,323,000 0 0 1,360,000 0 0 3,400,750 0 7,500,000 0 10,000 0 0 0 46,500 13,731,700 14.6 1947 0 6,400 0 0 142,050 1,489,450 0 0 3,920,000 1.216,000 0 3,650,750 600,000 7,780,850 0 73,900 0 0 0 967,700 19,846,100 10.5 Transport Equipment 31 December 1946 0 0 0 0 5,014,000 0 0 0 98,000 0 0 175,000 0 0 0
0 0 0 0 0

Table No. 55 Other Properties 31 December

Total
31 December 1946 61,725,100 20,000 0 0 5,217,350 3,793,812 1,257,000 1,000 6,890,000 2,053,000 0 4,684,750 0 8,610,000 0 85,000 0 0 0 121,000 94,458,012 100 1947 141,827,400 26,400 2,000 140,000 5,364,950 4,756,150 1,297,000 1,000 11,867,000 3,769,000 0 4,985,600 600,000 11,040,250 272,000 149,200 0 45,500 0 2,605,000 188,748,450 100

1947 0 0 0 140,000 5,066,500 587,000 0 0 943,600 1,000 0 175,000 0 2,141,200 267,000 0 0 0 0 423,525 9,744,825

1946 106,600 0 0 0 79,000 1,657,362 0 1,000 4,432,000 33,000 0 52,000 0 0 0 75,000 0 0 0 69,500 6,505,462 6.9

1947 206,600 0 2,000 0 100,000 1,667,850 0 1,000 5,626,400 533,000 0 52,350 0 8,200 5,000 75,000 0 45,500 0 1,208,776 9,531,675 5.0

5,287,000 5.6

Source: US Allied Commission Austria.

152

RESTITUTIONS (In Metric Tons) COMPLETED RESTITUTIONS PROM THE US ZONE AUSTRIA Art Country 31 December 1946 Austria Belgium British Subjects Bulgaria Czechoslovakia
France Germany

Table No. 56 Other Properties 31 December 1946 | 12 0 0 0 0 30

30 0

Industrial Equipment 31 December 1946 ; ! j 0 0 0 0 70

l 540 0
:

Transport Equipment 31 December 1946 0 0 0 0 150

0 0

Total 31 December 1946 1,662 7.5 0 0 310 750 180 0

2,783.5

! ;

1947 3,540 7.5 0 0 135

i 367.5 240

1947 0 7.5 0 , 0 ! 105 j

l
!

1947 0 0

1947 22.5 0 0 0 45
67.5

1947 3,562.5 15 0 0 465

2,295

1,650 7.5 0 0 60
180 180

0 a) i 180 V)
960 0

'

' ;

900 0

j I

Greece Hungary Italy Luxembourg Netherlands Norway Poland Kumania Soviet Union Turkey UNO US Citizens Yngoslavia Total... Percentages... Note: Additional restitutions in 1947 not listed above: a) 2 Barges. o) 18 Barges. c) 252 Unserviceable Freight cars (empty) and 5 Barges.

0 3.5 690 0 130 0 180 0 0 0 0 0 30 3,111 21.7

0 22.5 690 0 160 0 180 0 37.5 0 0 0 .. 30 5,400 15.4

! j | | | |
j

0 2,100 0 0 2,310 0 4,830 0 30 0 0 0 135 10,015 69.6

I j
;

0 2,670 3,480 0 2,985 1,800 5,422.5 0 142.5 0 0 0 1,147.5 18,660 53.3

0 60 0 0 90 0 0 0 0 0 0 0 0 300 2.1

j ' !

0 3,615 c) 15

j | ]

0 620 50 0 45 0 0 0 15 0 0 0 150 952 6.6

0 0
1,447.5

240 0
7,755 4,470

285 0 45 0
22.5

740 0
2,575

I i
i

i \
|

I ! j
!

j i
:

0 j 90 d) ' 0 j 2,895 ; 510 e) | 0 0 0 0 540 /) 8,805 25.2

0
3,270 1,800 8,520 517.5

0
5,010

75 . 15 0 30 0
157.5

0 45 0 0 0 315 14,378 100

j \ ! i

j ! \

i
:

j |

I i j

195 0 30 0
1,875

2,145 6.1

35,010 100

d) 1 Tugboat. e) 2 Barges. /) 2 Barges. Source: US Allied Commission Austria.

153

DISPLACED PERSONS REPATRIATION OP DISPLACED PERSONS FROM US ZONE AND US VIENNA AREA According to Nationality Volksdeutsche Period I Austrians Baltics Czechs Germans Greeks Hunga rians Italians Poles Ruma nians Soviets Expellees | 62,128 I ; 7,329 ; 39
0 730 0 0 0 0 0

Table No. 57 West Euro peans 38,187 2,501 265 84 69 0 0

0 0 0 0

NonExpellees
0 0 0

Yugoslavs

Others I Total

1945 2nd Q a) 3rd Q 4th Q .. 1946 1st 2nd 3rd 4th 1947 1st 2nd 3rd 4th 1945 1946 1947 Q .. Q Q .. Q .. Q .. Q Q .. Q ..

0 33,138 57,117 23,244 7,009 7,647 3,045

0 0 24 0 0 0 0 0 8 o

8,453 4,263 479 651 540 402 0 0 0 0 0 13,195 1,593 0

4,629 27,541 129,712 20,284 9,153 8,752 1,686 715 1,466 1,302 641 161,882 39,875 4,124

265 2,097 127 0 0 0 0 105 0 0 0 2,489 0 105

10,950 34,759 31,958 1,179 3,177 6,450 900 425 430 188 10 77,667 11,706 1,053

39,691 3,558 226 15 63 36 40 0 0 0 0 43,375 154 0

15,340 25,908 751 152 2,500 1,427 1,751 539 726 80 143 41,999 5,830 1,488

1,189 376 1,217 220 0 986 0

0 0 80 0

702
14,092

778 95 308 431 900 441 276 6 68 15,572 1,734 791 18,097

322 900 324 0 179 97 0 0 0 1 0 1,546 276 1 ; 1,823

181,756 156,462 223,017 59,895 56,882 62,842 8,512

13,971 33,114 36,478 0

0 23 0 0

0 40 136 190
0 0 0 0 0 366 0 366

2,1
183 0 0 90,255 40,945 3,063

50 81 7 0 69,496 730 138 70,364

5,156 3,193 1,666 865 561,235 188,131 10,879 760,245

24 0 13
37

2,782 1,206 80 j 4,068

0 83,563 23 83,586

40,953 153 0 41,100

Grand Total. a) From 5 May to 30 June.

134,263

14,788

205,881 I 2,594

90,426

| 43,529

i 49,317

Source: US Allied Commission Austria. ZONAL COMPARISON OF DISPLACED PERSONS POPULATIONS April through December 1947 US Zone British Zone United Nations
49,055 47,268 47,847 45,692 46,343 47,031 45,572 43,474 45,617

Table No. 68 Soviet Zone Total United Nations 138,670 129,483 125,965 121,693 127,906 126,566 126,365 121,849 120,300 Ex-Enemy 308,847 303,663 303,109 304,086 304,572 303,674 342,097 347,366 353,582

French Zone United Nations! 17,980 13,632 13,527 13,648 13,470 13,537 13,431 13,146 12,956 Ex-Enemy 57,593 54,624 54,644 57,785 57,931 57,445 57,547 56,947 57,982

Period United NationB 1947 Apr May Jun Jul . Aug. Sep . Oct Nov Dec 61,636 58,583 54,591 52,020 57,760 55,665 56,029 54,896 51,394 123,319 122,241 122,152 120,991 120,211 119,936 121,023 120,947 120,559
69,935 68,798 68,313 66,941 68,061 67,924 105,158 111,103 116,672

Ex-Enemy

Ex-Enemy

United Nations 10,000 10,000 10,000 10,333 10,333 10,333 10,333 10,333 10,333

Ex-Enemy 58,000 58,000 58,000 58,369 58,369 58,369 58,369 58,369 58.369

Source: US, British, French and Soviet Elements, Allied Commission Austria.

154

DISPLACED PERSONS ESTIMATE OF ARRIVALS, DEPARTURES, AND NUMBER OF JEWISH REFUGEES IN THE US ZONE AND US VIENNA AREA SINCE 1 NOVEMBER 1Mb Table No. 59 Period Arrivals Legal Departures Approximate Illegal Departures Refugee Population 4,145 a) 5,394
6,100

DISPLACED PERSONS RESETTLEMENT PROGRAM US ZONE AND US VIENNA AREA Period j Austria Argentina Belgium 1946 16,326 1 9 4 7 . . . . | 5,488 Jan . . 696 Feb .. 244 Mar .. 100 Apr . . 595 May . 177 Jun .. 570 Jul . J 1,315 Aug .. 307 Sep ... 383 Oct .. 527] Nov . 412 Dec .. 162: Belgian Congo
0 2

Table No. 60 UK US Venezuela Totals

Brazil

Canada Colombia Sweden

Nov 1945 Dec 1946 1946 1947

1,410 1,714 97,620 29,093 1947 911 423 717 585 892 1,712 4,106 10,940 2,404 3,189 1,965 1,249

0 0 44,721 171
1946 1947

161 1,008 34,399 34,983

1946 2,388 2,961 1,378

! 0 ! 756 0 0 0 232 0 144 132 248 0 0 0 0

0 411 0 0 0 0 0 0 0 258 22 0 0 131

0 74 0 0 0 0 0 0 0 0 0 0 0 74

0 702 0 0 0 0 0 0 0 425 0 213 0 64

1,037 ! 0 j 17,368 957 '1,500 | 9,894 0 0 0 51 0 40 116 105 203 142 150 150 696 0 244 0 100 0 878 0 196 19 756 1,610 1,665 92 414 1,757 219 ! 827 0 i 882 565 584

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

\ ! | ! I I i I i

2,409 2,261 2,078 1,214 2,041 6,544 13,826 29,945 17,544 15,321 2,103 2,334

0 0 0 0 0 0
1,758 6,015 19,015 14,000 1,000 2,933

0 0 0 0 0 0 0 0 0 52 55 64

862
1,914 2,966 3,847 16,465

0 0
1,618

1947 2,388 641 1,503 1,421 3,761 3,590 5,896 3,349 3,600 4,029 1,228 3,577

1946 6,121 5,421 6,121 6,473 6,600 10,178 18,399 25,864 24,393 25,714 25,199 24,600

1947 23,123 22,905 22,119 21,283 18,414 16,536 14,746 22,337

21,141
20,249
20,931
18,539

o! o!

Source: US Allied Commission Austria.

a) Present before November 1945.

Source: US Allied Commission Austria.

155

EDUCATION PUBLIC KINDERGARTENS AND DAY CARE CENTERS, ALL AUSTRIA, 1945, 1947 May 1945 Number oj j Units Kindergartens . . . Day Care Centers ! ! 558 15 Children 36,181 1,100 Teachers 1,133 30 Units 854 22 Table No. 61

EDUCATION THE ELEMENTARY SCHOOLS a) School Year 1946/47 and 1947/48 h) Number of Schools
46/47 47/48

Table No. 63 Number of Teachers d)

Average Number of Pupils per Teacher d) 46/47 47/48

December 1947 Number of ; Children Teachers 1 55,623 1,643 1,800 53 Vienna Lower Austria Upper Austria Salzburg Styria Carinthia Tyrol Vorarlberg Burgenland . . . Land

Number of Pupils c)
46/47 47/48

46/47

j 47/48

Source: Austrian Ministry of Education.

449 ! 465 1,331 ! 1,357 691 695 215 220 671 680 399 408 461 464 202 205 320 328

103,432 155,712 135,639 36,642 131,618 63,230 52,904 24,035 39,624

118,540 161,471 143,355 39,517 139,642 67,282 55,767 25,128 39,465

4,940 4,997 4,250 1,142 4,420 1,993 1,916 989 1,097

5,476 6,113 4,650 1,444 4,775 2,144 2,036 1,036 1,287

j 28,961

21 31 32 32 30 32 28 24 36
29

21 26 31 27 29 31 27 24 31
27

PROVISIONS FOR YOUNG CHILDREN IN VIENNA PUBLIC INSTITUTIONS October 1945 Group Units Children Kindergartens Day Care Centers Crawlers Sucklings (Creche) . . . . 150
42 2 0

Table No. 62 December 1947

All Austria... i 4,739

4,822 I 742,836

790,167 ; 25,744

October 1946

January 1947

Number of Units Children Units Children Units Children 8,429 2,119 a) 546 26

229 4,450 1,077 a) 53 10 39 0 0

7,032 234 1,662 a) 58 207 11 0 0

268 7,316 1,772 a) 72 25 228 2 0

a) Both public and private; including Hauptschulen, but excluding Special Schools. b) Figures are as of end of school year. c) Age group 614. d) The "Number of Teachers" includes full time and part time teachers (teachers of religion, needlework etc.). Therefore the pupil per teacher ratio based on full time teachers only is actually much higher (see p. 101). Source: Austrian Central Statistical Office. SPECIAL FACILITIES IN AUSTRIAN COMPULSARY SCHOOLS, 1946/47 Type of Facility Playgrounds Gymnasiums Motion Picture Projectors Slide Projectors Radios Kitchens Lunchrooms Showers Units 2,380 676 887 992 553 445 1,336 143

Table No. 64

a) Includes children up to the age of 14. Note that Table 61 does not include the 614 age group. Source: City of Vienna School Administration.

In Percent of Total Compulsary Schools a) 49.7 14.0 18.5 20.9 11.5 9.3 27.9 3.0

a) Includes Elementary Schools, Hauptschulen and Special Schools. Source: Austrian Ministry of Education.

156

EDUCATION THE SPECIAL SCHOOLS

EDUCATION THE SECONDARY SCHOOLS a)

By Type of School, December 1947 Number of Schools Number of Pupils Number of Teachers

Table No. 65 Average Number of Pupils per Teacher 20 3 12 25 15 85 12 12 7

School year 1946J47 and 1947/48 b) Number of Schools Number of Pupils c)

47/48

Table No. 67 Number of Teachers

Average Number of Pupils per Teacher

Type of Special School

Land

46/47 47/48 j 46/47 Mentally Defective . Speach Defective . . . Deaf and Dumb . . . Socially Maladjusted Crippled Tubercular Blind Visually Defective . . Hard of Hearing .. . Total Special Schools 38 1 4 3 3 2 2 2 1 56 3,799 737 468 439 337 190 106 56 46 6,168 189 245 38 17 22 2 8 4 6 531 Vienna Lower Austria Upper Austria Salzburg Styria Carinthia Tyrol Vorarlberg Burgenland All Austria.

46/47 i 1,430

47/48

46/47

47/48

62 27 16 5 20 7

63 27 19 6 21 7

18,419 6,235 6,688 2,009 6,972 2,973

3,384 1,663 610

18,516 6,023 6,903 1,975 6,564 2,730 3,220 1,665 706 ; 48,302

408 479 93 434 154 190 101 38

3,327

1,398 452 468 129 460 154 216 118 45

3,440

13 15 14 22 16 19 18 16 16
15

13 13 16 15 14 18 15 14 16
14

155

162

48,953

Source: Austrian Central Statistical Office.

ENROLLMENT IN AUSTRIAN TRADE AND ENGINEERING SCHOOLS,

a) Includes Gymnasium, Realgymnasium, Realschule and Frauenoberschule; both public and private. b) Figures are as of end of school year. c) Age group 1018. Source: Austrian Central Statistical Office.

1947/1948 School Technisch-gewerbliche Aiwtalten (Engineering Schools) Handelsakademien (Commercial Academies) Kanfmdnnische Wirtschaftsschulen (Commercial Schools of Economics) Frauenberufsschulen (Female Vocational Schools) Qewerbliche Fortbildungsschulen (Trade Continuation Schools) Kaufmannische Fortbildnngaschulen (Commercial Continuation Schools) Totale... Source: Austrian Ministry of Education. Public

Table No. 66

Private 1,415 2,889 3,687 5,464 543

134 14,132

ENROLLMENT IN SECONDARY SCHOOLS

By Type of School Table No. 68 Number of Pupils 46/47 7,066 33,644 6,326 1,511 ! 48,547 a) s
47/48

6,594 1,848 484 2,438 86,278

6,979 104,621

Number of Schools
46/47 | 47/48

In Percent of Total 46/47 15 69 13 3 100 47/48 18 66 13 3 100

Gymnasium Realgymnasium . Realschule Frauenoberschule Totale...

42 87 24 2

47 89 24 2 162

8,574 31,319 6,299 1,628 47,820 a)

175

a) Since these figures are based on enrollment at the beginning of the school year, they show discrepancies with corresponding figures on Table 67. Source: Statistische Nachrichten, 1948. p. 76.

157

EDUCATION SUBJECTS AND TIME ALLOTMENTS IN SECONDARY SCHOOLS a) Subjects Gymnasien Real gymnasien Realschulen Table No. 69 Frauen oberachulen Land Religion German 1st. Modern Language 2nd. Modern Language Latin Greek History Geography Biology Physics Chemistry Mathematics and Geometry Solid Geometry Introductory Philosophy Art Manual Training or Sewing Writing Music Physical Education Shorthand Care of Children Cooking Child Psychology I 16 28 I 16(+8) 6) 0 30 22 16 I 16 | 14 | 12 i I j j i j ' I I 19 d) j 2 \ 0 j 0 I 0

EDUCATION THE NORMAL SCHOOLS a) School Year 1946147 and 1947/48 b) Number of Schools 46/47 47/48 Vienna Lower Austria Upper Austria. Salzburg Styria Carinthia Tyrol Vorarlberg Burgenland . . . All Austria.... (Thereof Female)... 26 27 Number of Pupils c) 46/47 j 47/48 Number of Teachers 46/47 47/48 Table No. 70 Average Number of Pupils per Teacher

46/47

47/48

1,744 994 841 418 1,064 549 670 281 60

6,621 3,527

1,613 893 770 315 751 486 651 237 57

6,773 3,066

N.A. I N.A.

N.A.

N.A.

528

547

13

11

a) Both public and private. b) All figures as of end of school year. c) Age group 1419. Source: Austrian Central Statistical Office.

a) Figures in table show t o t a l of weekly hours over a n eight-year period. b) Elective. c) In 7th and 8th years student may choose art or music. d) Two hours per week outdoors, weather permitting. Source: Austrian Ministry of Education.

158

EDUCATION BUDGETS FOE UNIVERSITIES AND COLLEGES Allocation for Calender Year Total Allocation Schilling 1938. 1946. 1947. | 20,040,900 13,661,600 20,325,700 14,918,500 23,809,400 17,084,500 Source: Austrian Ministry of Education. Personnel Percent
68 73 72

EDUCATION
Table No. 71 ENROLLMENTS IN COLLEGES AND UNIVERSITIES
By Terms Institutions Table No. 72

Maintenance and Supplies Schilling 6,379,300 5,407,200 6,724,900 Percent

32 27 28

Winter Summer Summer Winter Summer Winter Summer 1938 1947 1945 1945/46 1938 1946/47 1946

Academy of Fine Arts (Aka- i demie der bildenden Kuenste) ' 250 Academy for Applied Arts j {Hochschule fuer angewandte \ Kunst) Agricultural College {Hoch schule fuer Bodenkuliur) . . . j 358 Academy for Music and Dra- ; matic Art {Akademie fuer Musik u. darstellende Kunst) College of Business Admini stration {Hochschule fuer WeUhundel) 817 College of Technology, Vienna {Technische Hochschule, Wien) ! 1,763 College of Technology, Graz I (Technische Hochschule,Graz) 481 Veterinary College {Tieraerzt liche Hochschule) 321 Mining College {Montanistische Hochschule Leoben) 137 University of Vienna {Univer sifaet Wien) 9,180 University of Graz (Univer sitaet Graz) 2,015 University of Innsbruck {Uni ver8itaet Innsbruck) 1,757 Theological Faculty, Salzburg (Theohgische Fakiiltaet, Salz 281 burg) TOTAL... 17,360

150

172

310

359

390 i j

398

286
304

325 i 621
i

299 819

406 1,324

394 | 1,220
j

139

434

867

867

971

1,042

553

966

2,355

2,633

3,430

| 3,004

1,193 379 270 128 8,029 1,845 1,666

600 144

! 2,256 j 1,676 241 211 9,014 4,596 4,185

2,368 1,693 382 197

; 3,630 2,109 ! 563 214

i

3,427 1,837 519 204 11,096 4,693 3,934

73 | 84 4,195 673

10,022 4,627 4,010

12,527 5,223 ' 4,180

283 14,800

i
i

308 36,275

298 32,066

1 7,766 | 26,657 | 28,276

Source: Austrian Central Statistical Office.

159

EDUCATION MEMBERSHIP IN YOUTH ORGANIZATIONS 1947

Table No. 73 Vienna 20,000 800

20,800

Name Catholic Youth .. Protestant Youth. Total Religious Youth Organizations... Socialist Youth (Socialist) Kinderfreunde (Socialist) Trade Union Youth (Socialist) Free Austrian Youth (Communist) Kinderland (Communist) Austrian Youth Movement Party (People's Party) Total Political Youth Organizations... Boy Scouts of Austria Girl Scouts of Austria Total Non political or non-religioua Organizations. All Youth Organizations Source: National headquarters of respective organization.

Year Founded 1857. 1923.

In Percent 25.4 1.0 26,4

Austria 130,000 3,000 133,000 30,000 27,868 41,770 20,000 23,000 40,000 182,638 5,500 700 6,200 321,838

In Percent 40.4 0.9 41.3 9.3] 8.7} 31.0 13.0J

1897. 1908. 1922. 1945. 1945. 1945.

5,000 8,997 22,500 6,000 10,000 3,500 56,997

6.3]
11.4 46.2

28.5J
12.6) 4.4 70.9
2.4 0.8. 20 3

Sj
12.4 56.8 1.7 0.2 1.9 100.0

1912. 1913.

1,900 226 2,125 78,922

2.7 100.0

160

EDUCATION MEMBERSHIP IN YOUTH ORGANIZATIONS 1947

Table No. 73 Vienna 20,000 800

20,800

Name Catholic Youth .. Protestant Youth. Total Religious Youth Organizations... Socialist Youth (Socialist) Kinderfreunde (Socialist) Trade Union Youth (Socialist) Free Austrian Youth (Communist) Kinderland (Communist) Austrian Youth Movement Party (People's Party) Total Political Youth Organizations... Boy Scouts of Austria Girl Scouts of Austria Total Non political or non-religioua Organizations. All Youth Organizations Source: National headquarters of respective organization.

Year Founded 1857. 1923.

In Percent 25.4 1.0 26,4

Austria 130,000 3,000 133,000 30,000 27,868 41,770 20,000 23,000 40,000 182,638 5,500 700 6,200 321,838

In Percent 40.4 0.9 41.3 9.3] 8.7} 31.0 13.0J

1897. 1908. 1922. 1945. 1945. 1945.

5,000 8,997 22,500 6,000 10,000 3,500 56,997

6.3]
11.4 46.2

28.5J
12.6) 4.4 70.9
2.4 0.8. 20 3

Sj
12.4 56.8 1.7 0.2 1.9 100.0

1912. 1913.

1,900 226 2,125 78,922

2.7 100.0

160