Messersmith, G.S., Vienna. To R[obert] Walton Moore, Washington.
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University of Delaware Library, Museums and Press
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Austrian movement toward Germany continues, but some slowing up apparent; [Guido] Schmidt unduly impressed in Berlin by cordiality of reception and by what was said to him; thinks Chancellor embarrassed; Nazis in Styria, Carinthia, and Upper Austria began organization of S.S. and S.A. units and addressing each other with "Heil Hitler" and Nazi salute; Chancellor and President went last week, speaking to Burgomasters and leading citizens making clear Nazism was to be suppressed; in recent conversation with Italian Minister [Francesco] Salata, he expressed concern over activities of [Franz] von Papen; said von Papen tolerated activities in his Legation unheard of in diplomatic practice; Salata himself had condoned Nazi activities, but has now been informed of wishes of his government; Salata has talked with [Odo] Neustädter-Stürmer, Minister of Public Security, calling attention to indiscriminate release of those arrested for Nazi activities; has covered in despatch no. 972 abortive effort of von Papen and German government to establish German representation in Austria as Embassy; negotiations for German-Austrian trade agreement to begin Dec. 7; some agreement will doubtless be arrived at, but will not work to Austria's advantage; has not talked with Schmidt since his return from Berlin but he reported to colleague that his conversation with Hitler had gone well; subject of Communism discussed and although Schmidt agreed Austria would continue to combat communism, there was no arrangement for common action with Germany; as to Franco recognition Schmidt reported Austria retained full liberty of action and would not recognize Franco Government in near future; according to Schmidt, he made it clear in Berlin that Austria had no intention of leaving League; German Government requested repatriation of Austrian Legion in Germany, but Schmidt said Austria could not consider wholesale repatriation, only individual cases; Schmidt did concede that before Austria made other economic commitments, she would consult Berlin; a big concession, for it is Germany's desire to dictate Austrian policy, first economically, then politically; Schmidt did not believe there was any arrangement between Italy and Germany regarding partition of Central and Southeast Europe into spheres of influence; vague reference to "army political" matters not clear; Italian Minister to Austria declares Italy and Germany have understanding for common action against Communism, but no other agreement; he reported former Emperor of Abyssinia had just lodged another protest with League; Austrian Minister in Geneva, thinking to please Rome, suggested Austrian Government protest reception of the communication, but was advised by Italian Government just to ignore the communication; recent protest from Spanish Government cannot be so easily disposed of, but there is little League can do; Italian Minister indicated he did not believe his Government would make any agreement with Japan; Soviet Minister in Vienna gave reception on Nov. 28 attended by most chiefs of mission, but no one present from German or Italian Legations; state dinner and reception in Schönbrunn Palace yesterday evening honoring Hungarian Regent [Nicolas] Horthy, here for visit; Prince Regent [Paul] of Yugoslavia, during recent visit to London, said to have agreed to fortification and deepening harbor of Cattaro as base for British fleet, work to be paid for by British; shows Yugoslavia's preference for English and French camp rather than Italian or German.