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XsAs2Za July 526
- page four =

elimination of existing politieal discriminations. In other wordé, all
elements opposed to both communism and to the large parties of the :
governmental coalition should be grouped under a singly roof. The
representatives of such idea hope to find their supporters among former
Nazis, former Heimwehren, among the social Catholies, the monarchists
and the dissatisfied elements in the middle elass and the rural
populations.

The governmental coalition is formed by the two main parties:
késő OVP (Oesterreichische Volkspartei") of Chancellor Figl and the
SPO ("Sozialistische Partei Oesterreichs") of President Koerner. Their
policies of constantly compromising in order to maintain their govern¬
mentél posts and the grave corruption affairs of séme of their
officials have ereated deep dissatisfaction in the country.
One typieal example of such political influence playing in economic
life is the law on foreign trade. It rules that the Chamber of Labor,
á political socialist institution, has the right to veto the exportatio:
of any produet from Austria. In order to favor the interests of their
socialist protegees, the Chamber has practically killed the Austrian
export in textiles, woods and other products and has made Austria lose
important foreign dollar markets, The OVP has recently opposed this
socialist monopoly as ruining the country. But faced with the socialist
threat that they would kill agrieultural subsidies, the OVP, fearing it
rural electorate, had already agreed to a comppgmise: the trade law was
to be prolonged for a year, while the socialists would vote for the

deal, did not count with the federal States. One of these, Vorarlberg,
whose textile industry had been gravely injured by the trade regulation
appealed to the Supreme Court. The latter published its decision on
June 2iste It declared the foreign trade law unéonstitutional, as far a
it is submitting the constitutional responsibility of a federal ministe
to decisions of a body which has no constitutional nature. This ruling
by the Supreme Court is of extreme importance, as far as Austrian inner
evolution goes. For the first time, the all-powerful political parties
are being successfully opposed. It is more than likely that other
federal States will follow the Vorarlberg example and use this means of
breaking Vienna's party tyranny. A great number of other laws, whose
constitutionality migimk can casily be attacked, might now come up for
invalidation. Such movement in turn might well precipitate a government
erisis that is léng ago in preparation. Once the coalition and the
strict party rule is undermined, the many reasons for discontent ¬
violated rights of the States and of the communities, economic difficul
among middle classes and rural populations, lagging export, scandals ar
corruption in the upper party spheres - will be free to break through
and to change the political picture of the countrye =<

Another of the recent seandals is openly connected with the socialist
Vice-Chaneellor Schaerf. The accounting of the nationalized Austrian
banks - the"Creditanstalty the "Laenderbank, the"Hypotheken-und Kredit-~
institut" - is bieng reviewed by the Court of Publie Aecounts (
"Reehnungshof") for the latter's report to Parliament. The Socialist
Party however had decided to put pressure on those banks and place then
under tutelage by the ereation of a Bank Inspection Agencye This they
hoped to establish as special division of the socialist-controled
Ministry of Nationalized Enterprises, thus ending the control of the
Finance