Messersmith, G.S., Vienna. To William Phillips, Washington.
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University of Delaware Library, Museums and Press
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Glad to hear Secretary returned from Pinehurst much refreshed; not unduly optimistic about situation in Europe, but developments in last six weeks have been in right direction; England, France, Italy, and Yugoslavia closer to agreement; League handling of Saar question and complications resulting from Marseilles murders indicates new spirit of cooperation; new coalition cabinet formed in Yugoslavia includes both Croats and Slovenes; if London, Paris, Rome, and Belgrade continue on present path, Poland, Hungary, and Balkan Entente likely to follow, and Hitler Germany will be completely isolated; Germany recognizes her position and is making effort to drive wedge between England and France; attitude of U.S., though no commitment is made, has contributed to present determined attitude of England and France; position of Austrian government and of Chancellor is strengthened, and if troubles arise they will come from outside; [Ernst von] Starhemberg keeping in background; Starhemberg reported to be very grateful to Schuschnigg for his intervention with the Pope in matter of annulment of Starhemberg's marriage; wife a charming woman, but has no children, and Starhemberg anxious for heir; Austrian government convinced that Germany has not given up her aspirations concerning Austria; explosives reportedly being sent again from Germany to Austria; Foreign Minister told of visit he and Chancellor made to Budapest; reported Austria and Hungary closer together now than in many years; economic more than political considerations drawing them together; economic situation in Austria encouraging; press comment about Austrian rearmament foolish; only basis for story is reopening of powder factory; all it means is that powder she used to import she will now make at home; in Germany, Reichswehr insisting that it be only armed force of government; S.A. practically eliminated; now it is reported S.S. to be absorbed by regular army; since Reichswehr is not Nazi, Party will be left without armed force to carry out its will; Reichswehr may be preparing way for new regime; saw in Vienna recently old friend, Abraham Frowein, former President of Internation Chamber of Commerce; Frowein reserved in what he said, but gave impression that situation in Germany was bad; church struggle continues unabated as does anti-Jewish program; Krupp von Bohlen resigned from Commerce Ministry out of disgust, disillusionment, and as a protest.