Messersmith, G.S., Vienna. To Secretary of State [Cordell] Hull, Washington.
Date
1936-10-08
Journal Title
Journal ISSN
Volume Title
Publisher
University of Delaware Library, Museums and Press
Abstract
Description
Attempt to dissolve various para-military organizations in Austria and incorporate them into militia successful except for Heimwehr, which is strongest of the organizations and putting up most opposition; dissension within Heimwehr itself between Major [Emil] Fey faction and Prince [Ernst] von Starhemberg faction; Chancellor looks on struggle with complacency, hoping it will weaken both factions and that Fey and von Starhemberg will disappear from political scene; this would open way for elimination of [Ludwig] Draxler and [Edward] Baar-Baarenfels from Cabinet; no one questions von Starhemberg's patriotism, but his wisdom has been in doubt; financial control over Austria has been completely lifted by League; Dr. [Karl] Buresch, former Chancellor and former Minister of Finance, investigated by prosecuting attorney and his house searched to examine his papers; that evening Buresch took dose of veronal and died next day; devaluation in France, Holand, Switzerland and Czechoslovakia has worked to Austria's advantage by decreasing her external debt by 160,000,000 schillings; Austria prefers not to devaluate unless her hand is forced; Dr. [Guido] Schmidt, Secretary of State for Foreign Affairs says Italian devaluation of the lira, which was unexpected, gives new significance to Vienna meeting of Rome Protocol States; Austria's internal position continues to grow stronger, Heimwehr dissension only cause for concern; externally Government feels balance of power so strongly against Germany at present that there is less danger of war; meeting of Rome Protocol States in November will attempt to build bridge for closer economic cooperation of Danubian States; Czech Minister to Austria, [Ferdinand] Veverka in speech in Geneva, emphasized necessity for increased cooperation and breaking down artificial barriers which have been erected; Italy will seek further cooperation, while Germany will do everything possible to sabotage it; death of [Julius] de Goemboes will make little difference in attitude of Hungary; her position is such that she is forced to play with both Berlin and Rome; negotiation of permanent trade agreement between Austria and Germany postponed until November; too many difficulties in way; from Sept. 26 to Oct. 3 was on motor trip through Germany to put relatives on boat at Hamburg; talked with [Frederick T.] Birchall of New York Times who was present at Nuremberg Party meeting in Sept.; he reported meeting an anti-climax; Hitler was dissuaded from giving his prepared speech and instead merely ranted about Russia and Communism; learned in Berlin from responsible source within Party substance of Hitler's prepared speech; (1) he proposed system of European solidarity against Communism with member states agreeing to make no treaties with Russia (2) Germany prepared to enter, with member states, disarmament program (3) demanded colonization outlets (4) demanded dismemberment of Little Entente; these proposals to be embodies in note to be sent to England, France, Belgium, and Italy as conditions for German participation in Locarno meeting; Party morale low in Germany; anti-Russian, anti-Communist campaign fell flat and Vatican agreement came to nothing; Franco-Polish rapproachment great blow to Party; they feel Italy is double-crossing them by trying to counter German expansion in Southeastern Europe; German army opposed to Hitler's foreign policy and wants no war with Russia; German business and industry at low ebb; raw material situation serious; [Fritz] Reinhardt, of the Treasury, stated that within 18 months Germany can produce enough gasoline to make her independent of external supplies, but he failed to mention the cost; Hitler speaks glowingly of Germany becoming self-sufficient, but city dwellers find it almost impossible to buy meat, even if they have money to pay for it; Party circles still control business and industry; army pessimistic about German striking power; but every fourth vehicle seen on road was an Army automobile or truck; average German sees this but does not know yet the lack of raw materials and credits; German-Italian flirtation continues on surface, but underneath there is no real basis for cooperation; Dr. Schmidt, on recent visit to Rome, got impression Mussolini fears Germany will undertake something in Czechoslovakia; while in Wiesbaden, visited General Motors plant; G.M. cannot take profits out of country so must use them for expansion in Germany if they do not wish to lose whole investment; much of their production now for the military; other American companies in Germany in same situation; only hope is that balance of power in Europe, which is now against Germany, will remain so; Franco apparently has made no commitments to Italy or Germany and victory of his army may not contribute to further disturbances in Europe; in recent talk with President [Wilhelm] Miklas he said Austria is heart of European situation, and if the heart stops beating, Europe will die.
Keywords
Messersmith, George S. (George Strausser), 1883-1960.