The Envoy Extraordinary and Minister Plenipotentiary of the
German Reich on a Special Mission.
No. A 2856
Contents: The development of the internal political situation
(Three copies for Foreign Office.)
After the change in the Austrian government, the outlines of the new distribution of forces are showing up a little more clearly in recent days. Many things point to the fact, that, while this change has strengthened the position of Prince Starhemberg, his influence is far from sufficient for reshaping Austria along his lines. In particular, it appears that the young people 'who have been newly taken into the cabinet, such as the Minister for Agriculture, Strobl, the Social Minister, Prof. Dobetsberger, and his Secretary of State, Znidaric, cannot be considered without further ado as members of the Starhemberg clique, and that, on the contrary, they wish to go their own way.
Within the cabinet as well as outside it, the violent difference of opinion continues as to Austria's attitude with regard to the question of sanctions. As I learn from various Ministers, the statement of Baron Pfhigl in Geneva, which was inspired by the Foreign Minister, has met with severe criticism even in the cabinet. People are rather horrified at the cooling off of relations with England and at the failure of the attempt to settle the question of the life claims of the Credit Bank, and they would prefer to get rid of Foreign Minister Berger today rather than tomorrow.' As I reported, it is also true that the Ambassador in London, Baron Franckenstein, was asked to succeed Berger. He has meanwhile categorically declined to do so. Prince Starhemberg does not want to drop the Foreign Minister, who is devoted to him, without obtaining a practical reciprocal performance on the other side. He wants to take over the War Ministry so as to be able to control the entire executive as well as the Heimwehr police and security department. Only if he was allowed to do this would he agree to the Federal Chancellor getting the Foreign Office as well, as is his wish. Otherwise, so people here aver, he wants to put up his diplomatic adviser, legation counsellor, von Alexich, for this post.
As is known, Counsellor of State Funder, with whom I had a long discussion recently, made a strong attack on the Foreign Minister already at the last budget discussion. He declared to me the day before yesterday that his dismissal had already been decided upon, but was difficult to put into effect at present, as they did not want to displease Rome. Moreover Christian Social circles, too, did not agree very much with the antagonistic atti-
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tude which the Foreign Minister was continuously adopting towards Germany.
The opinions of Counsellor of State Funder, the chief editor of the "Reichspost", may be taken to be typical of the political views of a large section of the Christian Socialists and of their very influential wing of officials. In this connection, the two articles that were published last week on the question of the trials re foreign currency and on the discussion of German-French relations are also worth noting. I have reported in detail about the first of these articles, and have stressed the tone which, in spite of all criticism, is conciliatory-—in which a collaboration of Catholicism with National Socialism against mutual Bolshevist enemy is demanded. Regarding the Fuehrer's conversations with the French Ambassador, the view is held here that Austria is very much hoping for an improvement in German-French relations, in Germany's as well as her own interest. Counsellor of State Funder also discussed the possibilities of a German-Austrian understanding. very frankly with me. He thought that the atmosphere had fortunately diminished extraordinarily in tension during the last few months, thanks to the press agreement, and that one must take advantage of this progress in order to reach an agreement which in future would give Germany's and Austria's foreign policy a common denominator. It was in his opinion much more difficult successfully to clear up the problems lying on the surface, such as the press, refugee questions, etc., because too many forces both inside and outside Austria were interested in sabotaging such an agreement. But it should be possible to reach secret agreements which would make possible a mutual consultation in future on all questions of foreign policy that are of mutual interest.
Even though this idea of Herr Funder's does not appear to me to be realizable at present, it nevertheless proves to me how much his circles are occupying themselves with the problem of improving German-Austrian relations.
Yesterday Minister Buresch paid me a visit. The point of his elaborations was to make clear to me that, now that he was a Minister without Portfolio and no longer burdened by the difficult department of Finance, he would have much more time to devote to the decisive problem of the German-Austrian question. He too stated that one could put great hope in the young minister who had newly joined the cabinet. He obviously has notions of forming a strong party of malcontents here, under the influence of the Christian Socialists, against the Starhemberg clique.
The latter actually still seems to think that Mussolini will com-D-694
plete his Abyssinian adventure without loss of prestige. The Polish Ambassador Gavronski, who a few days ago had a long discussion with Herr Maudel, the director of the Hirtenberg arms factory and the most intimate friend of Starhemberg, told me that Maudel exercises a really uncanny influence on Starhemberg. With all his Jewish resentment, directed against everything that is going on in Germany, he strengthens the Prince in his Italian policy. After the manufacture of munitions for Italy had to be stopped in Hirtenberg because of Italian protests, he, Maudel, had loaded the entire factory on to the railway in order to continue work in Italy (incidentally an interesting situation for Austria's supply of munitions!). I have today, as I have so often done previously, protested against Starhemberg's latest escapade, the usual Sunday speech in Linz. The Secretary General replied with a sigh that unfortunately the Prince had an uncontrollable temperament!
The government's efforts to make conquests among the socialist laborer wings are being continued at high pressure. Not only does Starhemberg make resounding speeches to the working class population every Sunday but Dobretsberger and Zindaric are also very active in that direction. Meanwhile, well informed circles assure me that these efforts completely fail with the social-democratic labor masses. At the opening ceremony of the new, state-owned tobacco factory in Linz, a banqueting table had also been put up for "Fatherland workers". Significantly it remained completely empty!
The League of Nations delegate, Herr Rost Van Tonningln, in an interesting lecture last night praised Austria's financial reconstruction in many directions. Nevertheless it is no secret that this year's budget is anything but balanced. On the orders of the budget consultant, a deficit of 360 million schillings was wiped out within 15 minutes by decreasing expenditure and increasing income. Naturally all this is a swindle on paper. No means are available for the program to create work in the New Year, and a new appeal to the capital market is not possible this year, I am told by the President of the National Bank, Kienbock. In this difficult financial situation the refusal of the British to help in the matter of the Credit Bank is of course particularly painful.
The instability of both the internal and the external situation has led, as I have previously reported, to renewed activity by the friends of a restoration. In spite of the difficulties which this question presents in the fields of foreign and home policy, one must in no way underestimate its importance for future developments. It is certain that Prince Starhemberg is only taking
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up the Habsburg question in order to have his "finger in the pie". Apart from the fact that he himself cherishes great ambitions for the position of Regent, legitimist friends within the Heimwehr exist in Lower and Upper Austria only; in the Alpine provinces, on the other hand, the Habsburg question is mostly the domain of Christian-Socialist and clerical circles. Reliable sources have informed me of an exchange of opinions which has taken place on this question between the Federal Chancellor, the local Nuncio, and the Holy See. The Federal Chancellor had let the Nuncio know that the mediation of the Vatican between Austria and the governments of the Little Entante was very much desired. The Austrian Government for its part was willing solemnly to renounce any territorial revisionism, Otto von Habsberg would be prepared to make a similar declaration.
The reply from the Secretary of State of the Holy See to the Nuncio in Vienna dated the 16.11 is said to have stated that, under the present conditions, the Vatican is not in a position to institute an official action of mediation, as at the present moment it must avoid anything that might be looked upon by Germany as being a clear exposition of the Vatican for a solution of the Austrian question. It was obvious that the Holy See had to avoid everything that might make the position of the German Catholics still more difficult. In detail it is stated in this letter: Italy is now as always to be had for a legitimistic solution of the Austrian question, but could not be brought in under present circumstances. The British Government had recently rather taken up the point of view of the Little Entente and was seeking to draw Yugoslavia into her sphere of influence. Britain could not tolerate any act whith meant a strengthening of Italy's position in Central Europe. Even though the position of the Little Entente was doubtful, it yet appeared that Yugoslavia saw a casus belli in the question of a restoration. For the same reasons France too did not want to touch this problem at present. The Vatican therefore recommends that the Government here should abstain from bringing the question up at the moment, but should continue the tactics of strengthening the Austrian legitimist movement which had been successful to date, and in particular secure it a prominent position within the "Fatherland Front".
I learn from the Yugoslav Ambassador that the ambassadors of the Little Entente here met and that they once again recommended to their governments that they should protest against the activity of the legitimists.
I hear from our friends in Linz that the director of security, Count Resertera, is continuing his efforts to bring about a recon-
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ciliation with the national opposition. Besides certain facilities for the imprisoned National Socialists, he is said to have made a proposal for an extensive amnesty. People are hoping that it will be realized at Christmas.
On the occasion of the session of the Diet on the 28.11., the Foreign Minister is going to give an extensive expose, and, as the Secretary General told me today, he will also touch upon the German-Austrian question. .
As my exposition shows, the position on the whole is pretty confused. A further clearing up can probably only be expected when the political consequences of the Anglo-Italian conflict show up more clearly.
[signed] Papen
To the Fuehrer and Reich Chancellor,
Berlin.
By Courier.
Report to Hitler, on political factions within the Austrian government, German-Austrian relations, and the "pretty confused" political and diplomatic situation
Authors
Franz Papen, von (Vice-Chancellor; ambassador)
Franz von Papen
German general staff officer, politician, diplomat, nobleman and Chancellor of Germany (1879–1969)
- Born: 1879-10-29 (Werl)
- Died: 1969-05-02 (Sasbach)
- Country of citizenship: German Reich; Germany
- Occupation: diplomat; military personnel; politician
- Member of political party: Centre Party (until: 1932-01-01); Nazi Party
- Member of: Union-Klub
- Participant in: Hostages Trial (date: 1947-10-03; role: affiant)
- Significant person: Wilhelm List (role: acquaintance)
Date: 26 November 1935
Literal Title: Contents[:] The development of the internal political situation
Defendant: Franz Papen, von
Total Pages: 3
Language of Text: English
Source of Text: Nazi conspiracy and aggression (Office of United States Chief of Counsel for Prosecution of Axis Criminality. Washington, D.C. : U.S. Government Printing Office, 1946.)
Evidence Code: D-694
Citation: IMT (page 11916)
HLSL Item No.: 453524
Notes:The date is provided in the Blue Set, vol. 35, p. 388, and in the transcript.