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f Viena% February 14* 19S§» M : * Dear Mr. Phillips* X last wrote you on February 1 and 8* I am very glad to a«y that February 12, the anniversary of Social­ ist incident* of laat year, passed eartraordinarily quietly herft* There was only one incident in ¥1 enna on the 12th* A group of ab<nr% fifteen to eighteon Socialists ftr Communists, in any event they had a red flag, staged a minor demonstration in Vienna whieh the police dispersed and they were shot upon cod two policemen Ml a civilian were wounded and one man among the demonstrators was killed. Otherwise the city was entirely quiet and X cannot find ft single incident of any kind in the whole of the country outside of Vienna. February 13 passed equally quietly and while the police vigilance will be kept up for some days, I think we may be sure there will be no distur­ bances. This 1ft in line with what X said in my letters and telegram. Even the Government Itself la pleasantly surprised. A curious paradox in the Austrian situation la that now that the people are more quiet and the Government 1ft many waya more strongly established than for a year, some Of the leading people in thft Government are less confident than they havft been for some time. It It too bad that this is so, for it is ft very undesirable situation, but I think it is one which we have to reckon with. I gave you an indication of this in my letter of February •# in the last paragraph on page 5, in whieh I said that thft Foreign Minister had toll me that if foreign support disappeared or iftsakened, they would have to be- oome more Nazi than the Nazi*. X added the comment that if this support disappeared or really weakened there would be ft landslide her* to get into the Nazi fold in order to save as much out of the wreck as possible far Individuals. In order to appreciate the realities of the Austrian situation, one must constantly keep 1ft mind that thft men who are today direct­ ing thft Government of Austria were brought up with the idea that the closest cooperation between Austria and Germany was essential end to whoa the doctria* of political unity with Ger­ many was taught as a desirable goal. Germany was the power­ ful and ever so much bigger brother to the North* The tame men today are sincerely convinced that political union with The Honorable William Phillips, Under Secretary of State, Washington, D. 4* > m 2— Germany is undesirable, certainly as long as this regime 1c in power in Germany, and erven if a more reasonable regiae should eoaMI there. They are putting up a good fight is de- fen.se of Austria*s sovereignty. They are now iwavinced that whatever the conditions In Europe, Austria ean live as a sepa­ rate state and they wish to live as such, but they cannot get away from looking towards the North, 1&atever happens there Is of the deepest interest to them both from the point of view of Austrian sovereignty and their own personal security. They realise that in taking this stand for Jcstrian cevereignty they have taken their lives In their hands and far the Nazis have beeorae Marked men* The conversations in Rome and later in London gave a oertain additional feeling of seourity to the members of the Government. They felt that they really had a good part of Europe behind Austria* which also meant personal seourity for them. The failure of Berlin, however, to follow the path to­ wards appeasement has created new fears here. After,all, for the Aastrians the 85 millions of Germans make up a great country and they believe still a powerful one. They know the ruthless- ness and the intolerance, aa wall as the objectives of Berlin, and 111 the back of their cdnds thereis always the fear of the strong neighbor to the Norflb The recent intransigeanc© of B erlin, following the London conversations, and what seems to the Government here the clear desire of Germany tc continue to pursue her policy of asking trouble, has created, I seem to sense, a new feeling of Insecurity here* It is an indefinable sort of thing, but which I sense very clearly from my contacts and, as I have already said, we must reckon with it. These people here know that if the foreign support disappears or in any way becomes less clearly defined, their fats is sealed and will overtake them very quickly* This makes them more timor­ ous Is their attitude than the circumstances require and they do not give altogether the leadership to the Austrian people which they deserve* In other words, to return to my original statement which no* seems clearer, the Government here ia less sure of itself at a time when It really has greater popular suppert than it has had before and when it should feel *»re secure. This uncertainty finds expression, for example, in news with respect to Germany being suppressed in the local news­ papers which it is very desirable from the Austrian and the airopean point of view should be printed. The Austrians will explain that it is due to their desire not to irritate the Ger­ mans at a time when appeasement may be possible, but in feality - 5 - thers is behind It a fear. It also finis oppression in various leas important ways, but all pointing in the same direction. / I should say, however, that all this must not be taken too seriously and is, la my opinion, more or less natural. Madariaga has been spending some days here and he got, X think, a wrong impression "when he first same here. He seemed is think that the Austrians did not know what they wanted. I eonfess that this Is one of the most difficult situations to gauge that I havs ever been confronted with, but I find that behind all these surface indications and these fundamental facts there Is now in Austria a real desire for the maintenance of har sovereignty irrespective of what changes may take plaoe in Germany* I think the Socialists, and even ths CoiOKinists very largely, share this sentiment and even parts af the Nazi groups* I believe, are sincere in saying that they want Austria to remain an independent but Hasi state. Hhat a good many people here do nob realise is that no matter how Nazi the Government might become, is would serve nothing and nobody here* Perhaps more realize this than la apparent, but cling to the hope that a more tol- erant attitude may save something out of the wreck for them. As I have said, I don't think too muoh importance must be given to theas fears obviously held by some of the people in the Government here, but at the same time enough importance muss be attached to this situation to make me men­ tion it to you. It might become at a given moment, or under giva» circumstances, a very important consideration which would explain a great deal which may happen. The Austrian character la ourious and is, as you know, mild. It does not like ex­ treme measures in any direction. But as long as the support Austria now receives from London, Paris, andRome ia accorded, Austria oss be depended upon to maintain her position of defense of har sovereignty. Perhaps one of the principal factors wh ich has dis­ turbed people ia the Government here is the still somewhat un­ certain aaw'tlon of England. ^hlle It is felt hers that as a result of the London conversations England has more definitely committed herself SB ths Austrian question than before, there is s feeling of uncertainty in view of the parliamentary sit­ uation in England. Some of the English nervspapers have been grossly slsrepresanting the internal situation in Austria, • 4 of course, with an object. I saw some of the headlines in London papef» • few days ago and they were most misleading, All this, combined with the :ntransigeanee of Berlin, h«s a tendency to increase these fears ever lurking in the backe of the minds of very worthwhile people here. I have aeen my British and French eolleagues quite frequently recently and I think I correctly forecasted the real nature and ob^eot of the tendon and Faria visits of the Chancellor end the Foreign Minister in my letter to you of February 8, I gather from my colleagues that there are no particular subjects for discussion and the principal object is to strengthen the prestige of this Government. Since 1 wrote, however, it is clear that these visits alM will e» used as a definite opportunity for strengthening the backbone of the Chancellor and of the Foreign Mnister. The Chanoellor at times looks very worried and I think he would be ever so much happier if he could be Minister of Education where hie interests principally lie. Freu Sohueehnigg has the same %vorried look that Frau Dollfuss used to have. Frssu Dollfus* slsj&ys felt that her husband would be destroyed by the Hazis and she always gave me the impression of a hunted animal. I gather the same eensation now when 1 am with Frau Schusoh- nigg and I think all this is bound to work an a husband for Sehuschnigg is not quite made of tha stern stuff that Doll- fuss -was. Berger-^faldenegg is considered by quite a few people ss an amiable but ineffective person.
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