AUSTRIA’S TRADE

Ashburton Guardian, Volume 69, Issue 77, 11 January 1949, Page 4

AUSTRIA’S TRADE

Electricity Can Play Part (Erom Hubert Harrison.—Reuter’s Correspondent). (By Airmail) VIENNA. Electricity experts are of the opinion that if present schemes can be completed the gap between Austria’s imports arid exports may be entirely covered by proceeds from the export of power alone. Before the Anschluss in 1935, it, was still a moot question whether Austria could maintain her economic independence. At, that time, Austria’s exports were insufficient’ to cover her essential imports of food, fuel and raw materials. It was the misery which resulted from this "situation which made the Anschluss so much, more difficult to resist. In the intervening period, however, two im portant developments have given hope that the new Austria bay be economically self-suporting. First, there is the development of Austria’s oil fields and second, there is the development of her water power. * Austria’s oil fields, which were discovered and developed in the . first place by a Canadian-born oil engineer, Mr Keith van Sickle, in the years before the war, were rapidly extended during the Avar. Their production increased so much that they could supply all Austria’s needs for oil products and allow a surplus for export. Plans were made for the transformation of railways, electricity generating stations and other isntallations to oil burning instead of coal —which wou.d have greatly reduced the coal imports needed by the country. In any case, exports of oil would, it Avas estimated, have been sufficient to cover the eo§t of any coal imports still necessary. These plans, however, were set back Avhen the Avar ended because the oilfields, Avhich lie in the extreme eastern district of Austria, were taken over by the U.S.S.R. and claimed as “a German asset” —on the grounds that they had been largely developed by the Germans during the Avar. As a result, the total production of fields is taken by the Russians and the Austrians are not allowed even enough to cover their minimum needs for transport and similar uses—let alone for the development of neAV oil-burn-ing installations.

Control By Russians All Austria’s oil exports are to-day controlled by the Russians and the proceeds are taken by them. No figTires are available as to production, exports, etc., and tlie future of tlie oilfields’ is too doubtful for,them to remain a betsis for plans for the future economic prosperity of Australia. There remains, however, Austria s tremendous potential development of water power. Seven iar reaching schemes for utilising the enormous power which, would be obtained by harnessing some of the many powerful rivers running through Austria are in process of being completed. Some of the capital necessary has already been promised, from the blocked account in schillings in the Rational Bank—which consists of the payments made by the Austrian population for the food and other goods supplied under the Marshall Plan. It is expected that some of the machinery necessary for the completion o£ these schemes will also he provided under the European Recovery Programme. Of a total of ovbr 18,000,000,000 k.w.li., nearly 3,000,000,000 k.w.li. per annum are produced from storable Avater as opposed to flowing water which cannot be stored. This is a great advantage as it greatly lessens the effects of drought. It is claimed by Austrian experts that even when Austria’s growing home consumption, which incidentally allows for increased industrial, production without increased imports of Coal or oil fuel, is satisfied, there will remain for export 1.4 times as much power as Siveden produces by water power, 1.8 times the production of Switzerland and 1.6 times that of .Norway. It is estimated that, allowing for a loss of*2o per cent,, in transit and the low average price of 10 groschen per k.w.li. (10 groschen is just over a halfpenny at official rates of exchange) the exportable surplus would he worth about 1,500,000,000 schillings—a sum which would coA r er a great part of the present gap between imports and exports. In addition, .increased supplies of cheap current for home industry would make, it* possible to increase exports of industrial products and/or the decrease of imports of coal and oil. This would help further to decrease the gap. In this way, according to technical experts, Austria’s unfavourable balance of trade can he diminished by the (level-, opment of her water power to such an extent that there Avill no longer he any doubt as to her economic viability.