Box 5

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Glad to have Messersmith's views regarding [London] Times change of policy; British naval agreement with Germany caused stew in Paris; interested to hear Sir Arthur Willert coming to U.S. in Autumn; will be glad to renew friendship; [Jay] Pierrepont Moffat already departed and [James Clement] Dunn installed as Chief of Western European Division; will miss Moffat, but Dunn will be excellent substitute.

Scope and Contents Calls attention to despatch No. 466 of June 25 covering developments in Austrian economic situation; Austria's destiny depends upon outside support; England would like to sidestep her responsibility; favorite saying there is that Austria is not Belgium; if Germany succeeds in taking over Austria it is merely first step toward economic and political control of Southeastern Europe and inevitable war; recent German efforts in London for purpose of calming public opinion to prepare way for...

Scope and Contents Reports conversation between German Minister Franz von Papen and Austrian Minister of Foreign Affairs Baron [Egon] Berger-Waldenegg; von Papen raised question of improving relations between their countries; complained Austrian press unfavorable to Germany; Foreign Minister replied Austrian press at least factual which could not be said of German press; von Papen stated Germany had no designs on independence of Austria or desire to interfere in her internal affairs; Foreign Minister suggested...

Scope and Contents Austrian Government has decided to prolong term of President [Wilhelm] Miklas beyond October when, according to constitution, a President should be elected; in view of difficulties between London and Paris and London and Rome, Government wishes to leave its hands free in struggle to maintain Austrian independence; law enacted by which part of Hapsburg property returned, and which permits Hapsburgs to return to Austria to live as private citizens; young Prince Louis Windesgraetz...

Scope and Contents European situation developing unfavorably; Abyssinian question top news at present, but major issue in Europe still hinges on Austria; Vienna capital of only a small country but is a crossroads where one meets people from all countries of Europe and is able to get good picture of what is happening all around; Poland's internal situation better than formerly, but in foreign policy she is still straddling fence; Czechoslovakian internal situation not happy and economic problems causing...

Scope and Contents Hopes Messersmith will continue to write in manner he wrote to [Jay Pierrepont] Moffat; sidelights in letters helpful in forming picture of what is going on; occupied recently with developments in Ethiopia and with visit from Prime Minister [J. A.] Lyons of Australia; interested in Messersmith's sketch of [Franz] von Papen; von Papen fools only himself in assuming position to which he is not entitled; met him at Chancellor's reception in Vienna; sorry visit to Vienna coincided with...

Scope and Contents Called on Foreign Minister [Berger-Waldenegg] yesterday; he confirmed substance of conversation with [Franz] von Papen; after learning von Papen had left for Berlin, he called press conference and made firm statement that there could be no improvement in German-Austrian relations unless Hitler made an unequivocal statement that he intended to respect Austria's independence and integrity; had no faith in von Papen to report his attitude correctly to Hitler; sees little hope of Hitler making...

Scope and Contents Enclosures not with copy. London Times, showing Times is swinging back to former policy; [Norman] Ebbutt again reporting from Germany without soft-pedaling the news; new campaign in Germany against church, Jews, professors, and student organizations as shown in recent speeches of Joseph Goebbels, Wilhelm Frick, Alfred Rosenberg, and Julius Streicher, all fully reported in Times by Ebbutt; Ebbutt reports with equal authority on economic and financial situation in Germany; Austrian Legion...

Scope and Contents Much speculation in press about restoration of Hapsburg monarchy; many Austrians favor idea but government leaders believe time not right; they do not wish to offend neighboring countries, who might support them in their struggle to maintain independence and to whom restoration would be distasteful; some favor beginning with a regency before proceeding to full restoration; Otto in accord; need for economic cooperation with Hungary leads to speculation concerning partial restoration of old...

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Enclosures not with copy. Encloses 5 examples of illegal propaganda material circulated in Austria, with brief comments on each.

Scope and Contents German Minister [Franz] von Papen returned from Berlin and has called on Foreign Minister [Berger-Waldenegg]; doubts anything came of conversation; Foreign Minister left following day for two weeks holiday; informed by colleague that Foreign Minister had stated several days ago that no matter what propositions Germany might make, Austria would have to consult France, Italy, and Hungary before considering them; Austria would also like to wait conclusion of Danubian pact before committing...

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Enclosed with No. 526. Translation of radio broadcast announcing death of Mrs. [Herma] Schuschnigg in automobile accident.

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Enclosure: No. 525. Reports death of Mrs. [Herma] Schuschnigg in automobile accident; believes it will not affect Chancellor in continued performance of duty.

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Interested in Messersmith's accounts of [Franz] von Papen's activities; curious fellow; knew him in old days; distressed to hear of tragic accident of Chancellor Schuschnigg and his wife; press first reported [Ernst] von Starhemberg would take Chancellor's place, but now appears Schuschnigg will continue.

Scope and Contents Automobile accident which took Frau [Herma] Schuschnigg's life but from which Chancellor escaped uninjured thought possibly result of foul play, but no evidence car had been tampered with, and no question of fidelity of chauffer, who was seriously injured; attended informal dinner given by Argentine Chargé two days before accident; Chancellor and wife present, happy and relaxed, and looking forward to holiday; some speculation Chancellor might resign due to severe shock, but he is not a man...

Scope and Contents Enclosing article from N.Y. Times of June 22 on brutality in Austrian jails; article, by [George E. R.] Gedye, gives completely wrong impression; Gedye, an Englishman and a Socialist, on the whole a good correspondent, but inclined to let political convictions color his reports; Gedye recently thrown out of Yugoslavia because of unfair reports on last election there, and is fast becoming persona non grata in Austria; spoke to [Edwin Leland] James, Managing Editor of Times, about Gedye while...

Scope and Contents Effect of [Sir Samuel] Hoare's speech in House of Commons instantaneous in calming fears, particularly in Southeastern Europe; speech opens way hopefully to peaceful settlement of Abyssinian question; Danubian pacts may then be concluded; pacts will not make good neighbor of Germany as long as present regime is in power, but may help safeguard Austrian independence; reaction to Anglo-German Naval pact in England as well as in rest of Europe has shown Germany that expected relief in way of...

Scope and Contents [Franz] von Papen left with Austrian Foreign Minister Berger-Waldenegg memorandum covering proposals for improvement of Austro-German relations; memorandum unsigned and no indication whether it represented von Papen's own views or whether it had been submitted to his government for approval; proposals cover suggestions for restraining press comment in German and Austrian press and freer exchange of newspapers, freer tourist authorization, and a very vague proposal for a ten-year...

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Read with interest Messersmith's letter on attitude of London Times toward German situation and activities in Germany with regard to economic situation; question how much influence Times has when it adopts purely personal viewpoint; noted when in London recently Times playing up pacifist attitude and desire of large element of British people for rapproachment with Germany; may be able to judge better after coming election to what extent this attitude represents British opinion.

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Dateline Buluwayo, July 27; reports dangerous activities of Watch Tower in inciting religious fanaticism among Negroes.

Scope and Contents Sorry Messersmith has not been well; has been "under the weather" also, but can expect no relief from any German "cure"; Messersmith's report on Oberländer-von Steuben business excellent; had arrived at same conclusion as Messersmith; von Steuben visitors to Germany this year did harm everywhere they went; Hoffman made two speeches which affronted every American present; Embassy sent report which may have some effect in Washington; said in brief speech that propaganda one of the errors of...

Scope and Contents Selby called afternoon of June 30; said he found situation in Austria reassuring and saw nothing happening in near future; Selby thought [Sir Samuel] Hoare's position on Danubian Pacts quite clear and that more definite action could be expected from him than from [Sir John] Simon; he felt nothing definite could be done about pacts until Abyssinian question is clearer; spoke of repercussions on whole situation which outbreak of hostilities in Abyssinia could have; referred to [London] Times...

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Little of significance to report; Austria quiet and both Chancellor and Foreign Minister away for rest; Austria full of tourists; everyone concerned over Abyssinian question; some optimism that formula will be reached in Geneva today which will give another month's breathing space; French and Italians working on drafts of proposed Danubian Pacts; England places greater value than before on pacts.

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Reports on progress with respect to Danubian pacts; draft pact drawn up by French government and sent to Italian government last week; Italian government sent copy to Vienna; England now showing interest; draft provides for non-interference, non-aggression, and consultation, but contains no provision for mutual assistance; Germany making every effort to block pact.

Scope and Contents Reports on difficulties of Watch Tower Bible and Tract Society; Austrian branch of Society ordered dissolved by Government; no American connected with Austrian branch; [M. C.] Harbeck, who is American, comes occasionally from Switzerland in its behalf; when Harbeck was last here, told him nothing Legation could do about dissolution order without instructions from Department; from Vienna, Harbeck when to Berlin where he was arrested for attempting to smuggle out of Germany movies belonging to...