GERMAN ASSETS

Greymouth Evening Star, 20 February 1947, Page 7

GERMAN ASSETS

RUSSIAN SEIZURES RECOGNITION IN AUSTRIA REFUSED AMERICAN ATTITUDE (Rec. 12.20 p.m.) LONDON, Feb. 19. General Mark Clark told the Foreign Ministers’ deputies that America never had, and never would, recognise the legality of Russia’s many seizures of property in Austria, regardless of Austrian interests. The deputies were discussing the British and Russian proposals for the disposal of German assets in Austria. General Clark declared that the disposition of German assets would be a crucial factor in Austrian economic recovery. The repeated discussion. of this question for nearly two years had been fruitless because the Russians refused to discuss the matter either bilaterally or in the Allied Control Commission for Austria.

Agreement with Britain. America agreed in principle to the British proposals on deflation and the transfer of assets. Some of the Russian proposals also were not dissimilar to the American viewpoint, but others were completely opposed to the American and British views. The Russian proposals inferred the legalisation of the seizures already made in the Russian zone and the imposition of restrictions on Austrian rights to exercise jurisdiction over Austrian property. The Russian proposals, he added, were not acceptable to America because they tended to nullify the object of the deputies’ meeting, which was to establish an independent sovereign state in Austria. Britain’s draft proposed that the German assets which have, already been transferred to the Big Four Powers should remain subject to Austrian law, and that other assets should be invested m the-Austrian Government which would be obliged to i eradicate the German interests from them. „ The Russian draft stated that German assets which had become Big Four property should not be subject to confiscation without the consent of the owner state. Thorny Problem. Mr Gusev (Russia) said he could not a*ree with the other deputies viewsthat German assets must be subject to Austrian legislation or that German assets not transferred to.he Big Four should go to the Austnan G °The' n Sputies failed to reach the thorniest practical problem of the wh ° le A??” frian "X It eeconomic committee for a further port. _-