Water Could Solve Export-Import Gap In Austria

Wanganui Chronicle, 7 January 1949, Page 3

Water Could Solve Export-Import Gap In Austria

(From Hubert Harrison, Reuter’s Correspondent.) Vienna (By Airmail). —Electricity experts are of the opinion that if present schemes can be completed the gap between Austria’s imports and exports may be entirely covered by proceeds from the export of power alone. Before the Anschluss in 19ob, 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 important developments have given hope that the new Austria may be economically selfsupporting. 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 year just before the war, were rapidly extended during the war. 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 installation to oil burning instead of coal —which would have greatly reduced the coal imports needed by the country. In any case, exports of oil would, it was estimated, have been sufficient to cover the cost of any coal imports still necessary. These* plans, however, were set back when the war ended because the oilfields, which 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 war. As a result, the total production of the 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 the development of new oilburning installations. All Austria's oil exports are today controlled by the Russians and the proceeds are taken by . them. No figures are available as to production, exports, etc., and the future of the oilfields is too doubtful for them to remain a basis for plans for the future economic prosperity of Austria There remains, however, Austria’s tremendous potential development of water power. Seven far 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 V being completed. Some of the capital necessary has already been promised from the blocked account in schillings in the National Bank — which consists of the payments made by the Austrian population for the good and other goods supplied under the Marshall Plan. It is expected that some of the machinery necessary for the completion of these schemes will also be provided under the European Recovery Programme. The schemes referred to are the following:—

Of this total of over 18 thousand million kwh., nearly 3000 million kwh. p'er annum are produced from storable water 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 Austrians 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 Sweden 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 20 per cent, in transit and the low average price of 10 groschen per kwh. (10 groschen is just over a halfpenny at official rates of exchange) the exportable surplus would b'e worth about 1,500.000,000 schillings--a sum which would cover a great part of the present gap between imports and exports. In addition, increased supplies; of cheap current for home industry I would make it possible to increase ex-

ports of industrial products and/or the decrease of imports of coal land oil. This would heln further to decrease the gap. In this way, according lo technical experts, Austria’s unfavourable balance of trade can be diminished by the development of her water power to such an extent that, there will no longer be any doubt as to her economic viability.

Production Working in kw. Capacity, Annual in kwn. Danube Scheme . 1.880.0(M> 11,000.000.000 Bregcnzer Ache . . 612,000 996,000.000 III Scheme 712.000 1 933.000,000 Inn Scheme .392.000 1,609,000,000 Oetz Scheme 723,000 1.4.31.000.000 Iscl Scheme 440.000 1.010.000.000 Reisscck Scheme .. 100,000 216.000,000 Total 4,839.000 18.215.000.000