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AUSTRIA in the FIRST COLD WAR, 1945-55 COLD WAR HISTORY SERIES General Editor: Saki Dockrill

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AUSTRIA in the FIRST COLD WAR, 1945-55 COLD WAR HISTORY SERIES General Editor: Saki Dockrill AUSTRIA IN THE FIRST COLD WAR, 1945-55 COLD WAR HISTORY SERIES General Editor: Saki Dockrill. Senior Lecturer in War Studies, King's College, London The new Cold War History Series aims to make available to scholars and students the results of advanced research on the origins and the development of the Cold War and its impact on nations, alliances and regions at various levels of statecraft, and in areas such as diplomacy, security, economy, military and society. Volumes in the series range from detailed and original specialised studies, proceedings of conferences, to broader and more comprehensive accounts. Each work deals with individual themes and periods of the Cold War and each author or editor approaches the Cold War with a variety of narrative, analysis, explanation, interpretation and reassessments of recent scholarship. These studies are designed to encourage investigation and debate on important themes and events in the Cold War, as seen from both East and West, in an effort to deepen our understanding of this phenomenon and place it in its context in world history. Titles include: Gunter Bischof AUSTRIA IN THE FIRST COLD WAR, 1945-55 The Leverage of the Weak Donette Murray KENNEDY, MACMILLAN AND NUCLEAR WEAPONS Cold War History Series Standing Order ISBN 978-0-333-79482-1 (oursid~Norrh A111nicu m1/r) You can receive future titles in this series as they are puhlished by placing a standing order. Please contact your hookseller or. in case of difficulty. write to us at the address below with your name and address. the title of the series and the ISBN quoted above. Customer Services Department, Macmillan Distrihution Ltd Houndmills. Basingstoke. Hampshire RG2 I 6XS. England Austria in the First Cold War, 1945-55 The Leverage of the Weak Gunter Bischof Associate Professor of History Universiry of New Orfea11s First published in Great Britain 1999 by MACMILLAN PRESS LTD Houndmills, Basingstoke. Hampshire RG2 I 6XS and London Companies and representatives throughout the world A catalogue record for this hook is available from the British Library. ISBN 978-1-349-40570-1 ISBN 978-0-230-37231-3 ( eBook) DOI 10.1057/9780230372313 First published in the United States of America 1999 by ST. MARTIN'S PRESS, INC., Scholarly and Reference Division, 175 Fifth Avenue, New York, N.Y. 10010 ISBN 978-0-312-22020-4 Library of Congress Cataloging-in-Publication Data Bischof. Giintcr, 1953- Austria in the first Cold War, 1945-55 : the leverage of the weak I Giintcr Bischof. p. cm. - (Cold War history J Includes bibliographical references and index. ISBN 978-0-312-22020-4 (cloth) I. Austria-Foreign relations-1945-1955. ~ Cold war. 3. Austria-Politics and government-1945- 4. National security­ -Austria-History-20th century. 5. Security. International. 6. Wori<.l politics-1945- I. Title. II. Series. DB99. l.B57 1999 327.436'009'045-dc2 I 98-49492 CIP © Giinter Bischof 1999 Softcover reprint of the hardcover 1st edition 1999 978-0-333-72547-4 All rights reserved. No reproduction, copy or transmission of this publication 111ay be 111ade without wrillen per111ission. No paragraph of this publication 111ay be reproduced. copied or transmitted save with written per111ission or in accordance with the provisions of the Copyright. Designs and Patents Act 1988. or under the tcr111s of any licence permitting li111ited copying issued by the Copyright Licensing Agency. 90 Tottenham Court Road. London WI P OLP. Any person who docs any unauthorised act in relation to this publication 111ay he liable lo criminal prosecution and civil clai111s for da111ages. The author has asserted his right to be identil'icd as the author of this work in accordance with the Copyright. Designs and Patents Act 1988. This book is printed on paper suitable for recycling and made from fully 111anagcd and sustained forest sources. 10 9 8 7 6 5 4 3 2 08 07 06 05 04 03 02 01 ()() 99 To Melanie This page intentionally left blank Contents List 11{ Ta hies IX Pre{ace and Acknowledgements x List o{Ahhreviations XVI Introduction The Austrians' Role and Allied Planning during the Second World War 7 No Indigestion: The Anschluss 7 Perpetrators and Victims: Austrians in the Second World War 13 Between Responsibility and Rehabilitation: Allied Planning for Postwar Austria 20 2 The Anglo-Soviet Cold War over Austria, 1945/6 30 The Rape of Austria: Liberation Soviet-style 30 The Looting of Austria: The Soviets and Austrian Reparations 36 The Showdown: British Containment of Soviet Action 43 3 The Creation of Austrian Foreign Policy, 1945/6 52 The Agenda: Inventing a Usable Past 52 The Campaign: Selling a Usable Past 60 Whither Austria? Between East and West 67 4 Austrian Economic Malaise: Soviet-American Cold War over Austria, I 946/7 78 The Take: Soviet Economic Pressure and the Origins of the Cold War in Austria 78 The Dilemma: Austrian Economic Problems 88 The Response: Washington and Austrian Economic Recovery 93 5 In the Shadow of Germany: the Militarization of the Cold War in Austria, I 948-52 104 A Treaty: Austrian Treaty Negotiations in the Shadow of Germany 105 Vil Vlll Contents No Treaty: The Communist Threat and the Militarization of Austria l l l A Short Treaty') The Ice Age of the First Cold War 123 6 After Stalin's Death: "Peaceful Coexistence" and the Conclusion of the Austrian Treaty, 1953-5 130 Peaceful Coexistence') The Western Response to Stalin's Death 131 No Coexistence: The Berlin CFM Meeting and the Demise of Austrian Treaty Diplomacy 137 The Leverage of the Weak: The Culmination of Austro-Soviet Bilateral Treaty Diplomacy and the Conclusion of the Austrian Treaty 142 Conclusion 150 Notes 157 Select Bih/iogmphY 216 Index 233 List of Tables 1 Austrian "reparations" to the Soviet Union, 1945-64 87 2 Number of machine tools before, during and after the war 88 3 Official daily rations for normal consumers, 1945-8 89 4 Number of displaced persons/refugees in Austria, 1945-55 92 5 Some basic economic indicators, 1947-9 93 6 The "Westernization" of Austria's trade structure after the Second World War 97 7 American financial aid to Austria, 1945-55 102 8 Per-capita distribution of Marshall Aid among ERP-recipient countries 102 Map 1 Austria, 1945-55: Zones of Allied Occupation 50 IX Preface and Acknowledgements [0/ur i'iew of' the past that tt·as actually experienced is influenced by the past as it came to he remembered. reconstructed, and sometimes, f(1r ideo­ logical purposes. im·ented. One r!f' the duties of' a historian is to separate the past as it 11·asfiw11 all the superimpositions of' imagination. 1 During the 1986 presidential campaign Austria's image was rocked by a great debate over conservative candidate Kurt Waldheim's selective memory of his sol­ diering record in the Second World War. Austrians elected Waldheim their presi­ dent but their cherished image of having been Hitler's '"first victim" was ruined. Waldheim's pained professions of just having '"done his duty" rang hollow in the face of revelations about his military service in the Balkans. one of the most cruel theatres of the war where the German Wehrmacht routinely committed war crimes against civilians. Not a war criminal himself, he was "'guilty by association" with a criminal organization.2 Waldheim's memory lapses came to stand as a symbol for Austria's own highly selective memory about its wartime record. While official versions of the past still stressed the myths of Austria as victim and a nation resisting the Nazis, historians increasingly revealed the complicity of many Austrians in Nazi war crimes. After the jolting debates over Waldheim. the acceptance of a complex mix of Austrian victims and perpetrators during the war has produced a more jagged but accurate version of the historical truth. In Peter Henisch 's revealing novel on the Waldheim fiasco. Stein's Paranoia, the fictional character Clarissa used the apt image that only slight tectonic shifts easily revealed these hidden layers of the Austrian past barely buried under the surface.3 Meanwhile the Swiss and the Swedes are going through similar tectonic shifts that reveal deeper layers of complicity among these neutral countries in helping the Nazis store away their ill-gotten gains.4 Again. dearly embraced national mythologies make way for a complex past peopled with real people - both bystanders and perpetrators. The hibernating record of the Second World War at last is coming to light among these neutral European nations with their carefully cultivated false notions of innocence. These debates about Austria's amnesia concerning its Second World War past were usually devoid of the historical context. It is little known that the wily founding fathers of the Second Austrian Republic im·ented a version of history that would liberate them from the burdens of the past. They abided by Winston Churchill's famous dictum ''history will be kind to me for I intend to write it".' It shielded them from paying for the role numerous Austrian perpetrators played in the Hitlcritc war of aggression and extermination. unloading it all on Germany. The first postwar Austrian Government. the provisional regime headed by the crafty old Chancellor Karl Renner. used the Allied Moscow Declaration to formulate x Preface and Acknowledgements XI the legal "occupation doctrine" of Austria as v1ct1m. It was designed to shield Austria from paying costly reparations to countries destroyed by the Nazi aggres­ sors and restitutions to Jews. "Austria as victim" would also retrieve the gold stolen by the Nazis. The occupation doctrine was constructed to give the country a short occupation and a quick peace treaty.
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