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2e J 526 ~ page three s towards an unknown destination. None of these transactions is registered and consequently they do not count as export, Only a few by-products are returned to Austria, but have to be paid for in foreign currency. They form consequently an import and represent a burden on Austrian economy. Russian army of ocevpatione - It lives entirely off the country and oecupation payments to Russia represent a very heavy item in Austria's budget. At present the Russian units stationed in Austria are formed by three motorized and armored divisions. One is stetioned in the highly industrial Wiener Neustadt region and the neighboring Burgenland along the Hungarian border; the second is located in the vicinity of Vienna, where also the Russian headquarters of Baden are situateds the third one is stationed North of the Danube in the so-called Muehiviertel, with its center near Krems. (2) The Uníted States and Austrias This past month a eonfliet has arisen between the Austrian government and Mr.Donnelly, the US High Commissioner. In order to deal with its difficult internal situation and tensions, Austria had passed a law of amnesty in favor of former Austrian Nazis. Mr .Donnelly refused approval of the measure, suggesting previous relief to be granted to Nazi victims. It was strongly felt in Austria that this decision had been originated by certain advisers employed in the US High Commissioner's Office, Former Austrian emigres, they had come to America during Hitler's regime and are now US citizens. This however has not freed them from their biased attitude and their prejudices show in a very clear stand on internal Austrian affairs. Certain mismanagements in handling Marshall aid transactions are also credited to their account. Resentment about their influence has led to a complaint of the Austrian govermment addressed to Mr.Donmelly and also to several manifestations of discontent throughout the country. Mr. Donnelly's answer was neither clever nor reconcilingeese. At a moment where Soviets are using anti-semitism as means of unification and propaganda in the satellite States, such mistakes of US occupation authorities could have most unpleasant effects. They are likely to arouse deep-seated feelings that would secure Soviet Russia with a powerful propaganda weapon in Central Europe. The deadlock of political parties P cal part ; actions, as represented in the xumks Austrian Parliament, are the communists, the so-called center and the. government coalitione , Communists, as detailed in a previous report, are and remain a small minority in Eastern Austria, but have recently shown increasin strength in the Western part of the country. : The “political center" formed by a number of smaller interes groups, is mostly represented by two main fractions: the VdU ani ése der Unabhaengigen") and the Action ("Aktion zur politischen Ernever After long and difficult discussions, these two parties have decided earlier in June to create a bilateral study commission whose aim it is to prepare the joining of these groups into one organization. Thus they hope to establish a common platform, uniting all political forces o stand for European unity, for social progress and for