Austria 779



tria eastward, especially in feed grains and cotton. Austria will, of
course, miss the economic development loans which would have been
made possible through schilling proceeds under new PL 480, Title I,
loan agreements. The United States has, however, been attempting pro-
gressively to encourage Austria to assume her own economic responsi-
bilities, and this rejection should prove one of a number of tests of her
capability in this direction. However, close and continued scrutiny ap-
pears desirable.



      Annex A8

            ADDITIONAL MAJOR DEVELOPMENTS
                NOT COVERED IN THE REPORT

    1. The Chancellor's Visits. During this year the Chancellor has made
official or unofficial visits to Italy, Germany, the United States and the
Soviet Union.9
    a. In Rome the Chancellor had informal talks with the Pope and
other Vatican officials on the long unsettled problem of the Concordat in
Austria. He also discussed the South Tyrol problem with Italian Gov-
ernment officials.
    b. In Germany, where the Chancellor went to participate in a cere-
mony installing Chancellor Adenauer as a member of the Teutonic Or-
der, Raab broached informally to Adenauer his idea for a new
"initiative" on the German problem. Some weeks later, Raab casually
revealed his secret "initiative" to the press. The Raab suggestion
was not
given serious consideration by any of the parties involved.
    c. The Chancellor's visit to the United States was primarily a good
will visit and, from his standpoint, was supposed to "balance off"
his
later visit to the Soviet Union. Inadequate advance explanations to the
Austrian people as to the purely "good will" nature of the U.S.
visit and
ineptitude in the public relations aspect of the tour resulted in a general
impression in Austria that the American visit was a "failure."
    d. The visit to the Soviet Union, on which the Chancellor was ac-
companied by a full Government delegation, including Vice-Chancellor
Pittermann, Foreign Minister Figl and State Secretary Kreisky, was long
planned and, from the Austrian standpoint, was for the purpose of per-

    8Secret.
    9Regarding Raab's visit to the United States, see Document 296; regarding
his visit
to Moscow, see Documents 298 and 299. Raab visited Italy April 1-7 and the
Federal Re-
public of Germany in early March.