HC Deb 18 December 1946 vol 431 cc1935-7
10. Mrs. Ayrton Gould

asked the Secretary of State for Foreign Affairs whether he is in a position to make a statement about assistance to Austria after the termination of U.N.R.R.A. relief.

Mr. McNeil

Yes, Sir. As the answer is necessarily long, I will, with permission, circulate it in the OFFICIAL REPORT.

Mr. Kenneth Lindsay

In view of the importance of the statement which is to be circulated, will the right hon. Gentleman give the House, in a word, some indication of whether there is any bright hope for Austria in this respect?

Mr. McNeil

Hope is always a comparative matter. The hon. Gentleman will find that the extent of our help is quite substantial. I hope it will not be the end of the help available to Austria, but it is a substantial commitment by His Majesty's Government.

Mr. Charles Williams

Is there any loan, and if so, how much is it?

Mr. McNeil

There are two sections to the help. There are a grant of £8,500,000, and a credit of £1,500,000 specifically available for the financing of wool purchases.

Mrs. Gould

While thanking the Minister for these grants, which will be very much appreciated, may I ask whether political conditions are attached to the grants, and also, whether he can give an assurance that the money will be exchangeable for the necessary goods?

Mr. McNeil

On the second point, we are arranging that the Austrian needs will be met, and perhaps I should add that the United States Administration means to ask Congress for an appropriation which would take care of these dollar charges. As to the first point, I am glad to be able to assure the House that there are. of course, no political strings. The grant is available to the Austrian Government for Austria, and not for any particular part.

Following is the answer:

His Majesty's Government have decided to make a substantial contribution by way of relief assistance to Austria. This decision is in conformity with the resolution adopted on nth December by the General Assembly of the United Nations on the subject of relief needs in the post-U.N.R.R.A. period, and we are confident not only that the other occupying Powers will make contributions proportionate to their resources, but that further help will be given in cash or kind by other countries in a position to assist. If these expectations are fulfilled, it should be possible for Austria both to acquire the necessities of life throughout 1947 and to set her feet on the road to economic recovery, thus limiting the need for further emergency assistance thereafter.

It is the desire of His Majesty's Government that Austria should be enabled to stand on her own feet at the earliest possible moment. They are, therefore, putting their assistance at the disposal of the Austrian Government and are making no stipulations which would favour the British Zone as against the rest of Austria. Indeed, it is their object to make as few stipulations of any kind as possible, because they believe that the independence and integrity of Austria can best be assured by freeing her from hampering restrictions to the greatest possible extent. The only conditions which they feel obliged to make and which the House will, I am sure, regard as entirely reasonable, are the following:

  1. (1) that the principle of economic unity is maintained by all the other occupying Powers, so that the Austrian Government is able to dispose freely of its resources and imports for the benefit of the Austrian population as a whole;
  2. (2) that the assistance is used only for purchases which are essential for Austrian recovery.

His Majesty's Government's contribution will take the form of grants for the purchase of relief imports and credits for the purchase of reconstruction imports. These grants and credits, up to a maximum of £8½ million, will be available to the Austrian Government for the purchase of such essential supplies as can be obtained in the United Kingdom and such other countries as may be agreed. In addition His Majesty's Government have guaranteed, under the Overseas Trade (Guarantees) Act, 1939, a commercial credit of £1½ million for the purchase of raw wool.