% V Ifiesna, Auftet 23, 1935* Dear Mr. Phillips* The situation in Austria remains quiet, hut the seriousness of the general situation In Europe If well appreciated here end naturally causes concern in responsible quarters. The people 1A general are quiet and I think not too mush concerned ever the general situation, ftp the tourist season is at its height and practically every part of Austria has benefitted tremendously by it* The general easiness situation has been fa^or- fely effected and the attention of the people has been distracted fram the major issues* The Foreign Minister Is back on the job and working raany hours a day as he has two other ministries for the tine being on his hands while these colleagues are on holiday. The Chancellor has jttst lost his mother and this <m top of the death of his wife It severe blow to hira, for next to his wife he was closer to his mother then to anyone else. St It bearing up under It ver;' well, but the Foreign Minister toldraelast night that he and others are trying to persuade hiss to take a real holiday. Starheuberg and tho Minister of Finance, Bureseh, h«<ee been taking a cure t% Bad Gsetein, and Ylenat It filled with foreigners while the Austrisns have gone Into the country. Although X have not sinet X an here known the situation to be so quiet &ad so generally satisfactory within Austria as It is now, there is no doubt that responsible people are deeply concerned. X think here la Vienna as s&ich as anywhere in Europe all the posslbilitlet which ssay grow out of a conflict in Abyssinia, eve though it **y *t localised there, ere adequately appreciated. For this reason the Ooverwaent here It most keenly Interested in the rapid negotiation and signature of the Danubian I'acts to stabilise tho situation in Central Europe. Xn ny despatches and telegram I have tried to keep the Department up to date on these pacts so far as it Is possible from here. Paris took the initiative several weeks ago, realising the liaportantt tf rapid action on them III view of the general situation, and the principal pointt f the non-interference The Honorable William Phillips, Under Secretary of State, Washington, S* C*
2 non-aggression, and consultation pacts were agreed upon between Parii tad Rome and definitely submitted to Vienna a few day* ago, Vienna ha* replied accepting this basis, and the Foreign Minister tells ae that he has definite information that the draft is acceptable to Hungary* He it snqally tare that it is acceptable to the Little Entente, as France would not roach an agreement with Italy before satisfying itself of the Little Entente's approval* Mutual assistance ta loft out sovietely and the pact -sill therefore he very different and less effective than originally planned, but all concerned re unanimous that the important thing if to establish the prineipls and th»t even in their attenuated for they 'will help in ibs^ntaining the pe«oe. The mutual assistance precision has been l@ft out, not so much on BOcount «f Gerasay as is generally supposes^ hut because the pact in the form planned is one that can be accepted 0/ the other states concerned and got through quioklyy and there is at least a good ehnnos of Polish adherence* I think no one had any real thought that Oenaany -would adher to any pact tending to maintain the status quo in Southeastern Europe, for her prlwsqjytrolley is to keep her hands free for expansion in Southeastern Europe and to sabotage any agreements which night hinder her. The ssost significant development in connection with the pact Is the intense German activity to prevent its tossing into being In aay fonts This actios was oonoentrated particularly OB Budapest, Belgrade, and Bucharest as well as Vienna. (then the action In Budapest, Belgrade* and Bucharest did not stake the expected progress, attention was concentrated SB Vienna and an endeavor made to give greater iaportanos to the oonver- ations which I have fsported SB between the Foreign Minister here and the German Minister, von Pape»«Thsfw Foreign Minister has bean playing a seise of hlde-and-eeait with von Papon, fsb while he cannot refuse to talk to him and wishes to nvoid a breaks he feels the conversations utterly useless and any German offers without guarantee for the future. flmmrcpreseios of the Government here is definitely that what Berlin wants to do is to sake a aeparate agreement with Austria merely to prevent the Denabien Pact from coming Into being, and then treat this agreement in the well known National Socialist fashion.
- 8 - tha pressure on Vienna, however, direct and Indirect, within the last days has been heavy. Berlia it informed as t the definite progress being made on the pacts, end sees herself feeed by a felt aeeaapli* Papon undoubtedly saw Hitler, as reported inraydespatch Ho* S20, of August IS, end got instructions to»ork for aopsrate agreojaentf although Hitler cynically remarked that they would in the and have to take direct action to absorb Austria* la the neantlao here in Vienna the Coverrsaent feels that the pacts are in such shape that they will rapidly coma Into baiag* The Little Entente Conference it to be held on August 29 f when the formal apprtw vol to the Parts-KcEse draft is expected. The Foreign Minister himself is planning to go to the Leegua m eting early is September, by wh?oh ti»e the final phrasing of the poets la be eoneluded and r#pid slgaature la axpaated, vihetever attitude Germany may take is, 1 understand, tt he disregarded*, and so delay in signature %o bo permitted through Oenssn ftteaoaevres, la spite of this, oonfldonoe, however* there la» eert&la nervousness here due to the tension between London and Bona, and I think you will appreciate the atmosphere best by ny telling you that last Bight X had dinner on the Cobensl with the Foreign Minister and tfcree tines during dinner he went to the telephone to aosssanioate with the Foreign Office to get what news they had of the Cabinet council la London that day* linen h ease baok about tea o'clock with the news that tha Cabinet council had decided not to lift the embargo on arsis, that Parliament was not to be called Into aeasioa, that another council would not be held until after the League Meeting,»nd that Usldwia was returning to Alx-las-Bnins* he was cam of tha happiest and most rallewed aen 1 have ever se a* She Eeutar eossmmlque, too, which Indicated continued cooperation between London and Paris, was perhaps the laaat satisfactory of all hero for, as X have mentioned In previous letters, England is the country which speaks with real authority on the Continent* As we left the Cobeaxl late la the evening the Foreign Minister told m that ha was now definitely prepared to meet von Pepen la the soralng. Be said that won Papon was in Berlin and was returning to Vienna this morning and that ha had an appolntswmt %a see hiss it isffeu o'clock* It If act unlikely that Pspea It bringi8 Proa Berlia for tat first tlaa soae fairly definite propositions for a separate agreeiaent* Faced by the developments, there is even the possibility that Gerasany say offer am arraagaoent tisdlar to the one which it
\ * has with Foland. fit attitud, however, of the Austrian -Ooverniaent la clear and is act likely to ehange. It feels that It *» h»v less onfld<moe ia the durability of an agreement with Germany thaa even Poland can. It believes that any German offer 1 intended only to sabotage the psota mm to disturb public opinio* tn Austria* St has the definite ienvlotion that the Hatloa! toola11at OoTe«nM«t hae no Intention if respecting Austrian integrity, irroapootlaa of any agreement which say be ned < The Austrian ^orernasnt therefore bases its entire todopendonot Ml England, France, and Italy, and en the friendly attitude of the Southeastern Europeaa neighbors, and will not consider any separate egreeneat with Germany a long as any hope of the Danubian Facts raoain*» The Foreiipa aiuieter wee most etegeri t si last evening la his tatobsents to this effect, X have reason to believe that the fomer disinterested British' attitude in these foots has ostpletaly a hanged and, oo indicated ia previous letters and despatches, that the foreign Offlot is London la actively encouraging their conclusion* la this connection I think it is rather 1 portant to clear up one point on whioh there lo o good deal of conflicting Inforaatioa and thet is the status of von Papea* Alfred Klieforth has juat returned here free? leava in tho United 3tatc to spend a few days aore befaro he goes to his new post at Oologno* He says that while he was In Berlin on his way how he saw both von Heurath and Frau von Kouroth, and that they bath told hia that Fapen had ao opportunitloi to speak directly with Hitler and in BO way had his onfidene '' and that "Papen did not have tho oonfideaoe of tho Wllhelaotrasso** KUeforth also said both tho voa Heuraths told him that all tho oaaualoatioas if the Foreiga Offieo la Berlin to Vienna wero addressed to Prina Erhsoh, tho gtaarisolor of the Germn Legation hero, oad that the Foreign Offloo ignored von Papea* KUeforth tells vm that he gave this information to the* Depart* mnt, and I think it reouiras sons olarlf iaetion* It ia quit probable that Kli for b sow both voa Beurath end Fraa von lieuratk la Berlla* He was alway very friendly with van Heurath 4 son \<ho is now t the Embassy in liosao. However, X have 3e arned that one mint take with a gra* a of salt Kliefortli* reports of iomversation, and unfortunately oa annot iopend entirely on what the von Seurath* aajf«that Papoa does not have Hitler* confidence, w know, but wo lao know that he ia a willing Instrument if Hitler for the present.
\ \ V 5-1* also know that he has on several occasions recently seen Hit lata It It quite absurd, I think, that the official eoraaunioations of the Vllhelnstrasaa to the German Legation here should be addressed to Prinoa Erbaoh* X think it is oruita olear that Erbaeh is acre persona grate to a group la the»s1- helastrasse tfeea Pspen is # and it is also true that Pap en onsldeft Has elf as a Sinister on special mission in Vienna and his letterhead carry that designation. Tha iastrlan Govern* meat has not roeophsed hi a in any oapsolty other than e usually accredited Minister, and awn from the Geraan point of view he la the Geraan l&alster h r% wema though oa special mission es well* X a» merely r»kia?; these observations beeause it is a favorite praetioo for certain people la the Geraan.*ovena» sent who are not National Socialists to try to ad a lead us -with regard to certain individuals ead their position and t rr>ke it appear that they are not working with the Government, whan as a matter of fact they are willing instruments and as servile a If they ware- most enthusiastic Party w*abera# This Is tv position with reapoot to Papea and while no on seems to hew any confidence la him in Germany or here* fee Is the s«ithpiooe of the German Government her andhas been exceedingly aotift in the past months, fhe hope of everyone here ie concentrated on tie possibility of actual conflict in Abyss lata still beinf- avoided. The difficulty of agland*a task is fully appreciated here. fhe principal interest Ik Vienna is in tha rapid ootiolusicji Of the Uaaubiaa Pacts which now acorns likely, fhera mre no illusions,however, as to what tha consequences of actual ooafilet in Abyssinia say have here* far the growing oritical situation in Germany anly stakes aa Austrian ttventore ssore attractive. If the developing elraumstanoea should Indicate eves the lightest hope of success* My own feeling is that even though actual conflict my break out in Abyssinia* the situation in Germany i«euah that the Party cannot nndertska any action against Austria at present* ail even If it did wish to da so that it would precipitate action by the Paiohswehr to prevent it, nevertheless thera ere so may factors involved in this whole problem that at one is wise eaou h to tell what cay happen la casa af actual outbreak of hostilities, so that we oan only say our prayera and hope that an arrangement raay be found which will prevead it. Cordially and faithfully yours. George S. Uessersmith.