Messersmith, G.S., Vienna. To William Phillips, Washington.

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University of Delaware Library, Museums and Press

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Present Austrian government as good and strong as can be expected under existing circumstances; Italy, France, and England stand behind declaration that Austrian independence must be maintained; internal situation not good; no parliament, and large sections of population have no voice in government; Social Democrats excluded from government and many of them in prison; believe government may adopt conciliatory policy, release many of those held and eventually take some of them into government; financial situation no worse than last year but still precarious; many very poor and many unemployed; [Franz] von Papen flying here today; will probably make trouble; conflicting reports as to Austrian Legion being dissolved and [Theo] Habicht and [Alfred] Frauenfeld [leading Austrian Nazis] being in prison; lull in radio propaganda doesn't mean Hitler has changed his intentions toward Austria; recent talk of return to Monarchy in Austria largely newspaper speculation; rumor that Mussolini considering placing Prince of Hesse on Austrian throne surely without foundation; Prince intellectually below average and without morals; Austrian army increased to 30,000, maximum limit set by treaty; Austria quiet; but guards, police, and Heimwehr much in evidence; foreign tourists coming in large numbers, but too late in season to help economy much; Herbert Feis expected tomorrow.

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