Box 8

Scope and Contents Austro-German trade agreement signed Jan. 26; one provision affects film industry; no quota for films from abroad is to be established but 25 percent increase in contingent fee may be burdensome; American film industry, which has distributors in Austria, may not be seriously affected; only one film producing company of importance in Austria; formerly company was owned jointly by German and Austrian interests, but Austrian interest, which happens to be Jewish, recently sold its shares;...

Scope and Contents Enclosures: See Nos. 826 & 832. Austro-German trade agreement concluded and signed Jan. 26; some increase in trade expected though benefits meager for both countries; Germany would like to import all of Austria's surplus foodstuffs, but unwilling or unable to set aside sufficient exchange to pay for it; wishes to make payments in coal and manufactured goods; Austria willing to accept coal, but except for electrical equipment wants no German manufactured articles; German industry...

Scope and Contents Has been writing to [Acting Secretary Robert Walton] Moore during Hull's absence from Washington; congratulates Hull on successful completion of conferences in South America; Austria quiet and no cause for concern for immediate future; organization of groups for purpose of political propaganda disquieting, but Chancellor in control of situation; bringing [Odo] Neustädter-Stürmer into Cabinet was mistake; he has openly sponsored the organizations, knowing they are poorly concealed movement of...

Scope and Contents

Thanks Messersmith for letter of Jan. 16; letters always informative; will turn present letter over to Secretary [Cordell] Hull, who has returned to Washington.

Scope and Contents

Wrote to Secretary [Cordell Hull] on Jan. 30; Moore will probably see that letter; thanks Moore for acknowledgment of letters; leaving with Mrs. Messersmith for U.S. on April 7; would prefer going later, but 88 year old mother always expects to see her son in the spring.

Scope and Contents

Appreciates Dunn's information about interest in film industry; has been following situation carefully and reported on it in despatches No. 1020 and No. 1034; afraid situation will cause trouble, not because of arrangements between Austria and Germany, but because German interests apparently have gotten hold of the Austrian industry.

Scope and Contents

Sending to Carr copy of Jan. 30 letter to Secretary [Cordell Hull]; having real winter in Austria and everybody happy as it means good winter tourist season; distressed over flood situation at home.

Scope and Contents

Acknowledges with thanks letters of Dec. 19 and Jan. 4; letters deserve a much fuller reply, but very rushed at present.

Scope and Contents

Enclosed with No. 847. Report on changes in Austrian film regulations, prepared by Leys A. France, Assistant Commercial Attaché.

Scope and Contents

Enclosed with No. 847. Reported in full in despatch no. 1044.

Scope and Contents

Enclosed with No. 847. Comparison prepared by Commercial Attaché of former regulations of Ministry of Commerce concerning films and new regulations.

Scope and Contents Enclosures: See Nos. 844-846. Because of 25 percent increase in contingent fee for foreign films shown in Austria, European representatives of American film companies recommending to their home offices that they no longer distribute in Austria; they contend such increase would cause them to lose money or make no profit, and hope by withdrawal such demandwill be created that the 25 percent increase will be removed; Wildner, head of Economic Division of Foreign Office, said increase in fee was...

Scope and Contents

Glad Messersmith wrote about Miss Salata; when she arrives in Rome, will offer her hospitality; wife going to America middle of March to be with three sons during Easter holidays; would like to visit Messersmith between middle of March and Messersmith's departure for America in April, perhaps accompanied by daughter.

Scope and Contents Internal loan of 180,000,000 schillings announced; proceeds of loan to be devoted public works and retirement of short-term treasury bills; should reduce unemployment and prevent devaluation of schilling; favorable development of Austria's industrial and economic position reflected in increasing tax returns without increased tax rates; mentioned in last letter the so-called cultural organizations which are disguised Nazi groups, and support they were receiving from Cabinet members [Eduard]...

Scope and Contents Wonders if [James Klahr] Huddle has arrived in Berlin; is sure Geist will be great help to him; Major [Lowell M.] Riley to replace [Martin C.] Shallenberger as Military Attaché at U.S. Legation in Vienna; recommends book, "We or They," by Hamilton Fish Armstrong; Chancellor had planned to marry a Countess Fugger but decided it was politically unwise and called off marriage; [Konstantin von] Neurath coming to Vienna Feb. 22 and 23, but thinks it means no more than a return of [Guido]...

Scope and Contents [Odo] Neustädter-Stürmer certain to be eliminated from Austrian Cabinet, but Chancellor thinks it advisable to keep him on until after visit from [Konstantin] von Neurath; monarchist movement to the fore again, chiefly because Chancellor sees no one to whom he could turn over government safely; inquires as to status of U.S.-Italian trade negotiations; they may affect indirectly Austria and U.S. negotiations with all countries of Southeastern Europe; enclosing extract of letter from [Lloyd...

Scope and Contents

Thanks Messersmith for letter of Jan. 30 in which he describes recent political developments in Central Europe; Messersmith's periodic reports are of great assistance in appraising European situation; looks forward to visit from Messersmith while he is at home; wishes him pleasant voyage.

Scope and Contents Delighted Phillips coming to Vienna; will be sorry not to see Mrs. Phillips, but hopes Phillips' daughter will accompany him; plans for repairs and alterations of residence arrived and if plans are found satisfactory work may start immediately after his and Mrs. Messersmith's departure for home; it will mean dismantling house and storing furniture before departure on Apr. 7, so hopes Phillips will come as soon as possible after middle of March; Chancellor made reassuring speech in Bundestag...

Scope and Contents

Plans and specifications for repairs and alterations of house arrived today; Captain Underwood expected today; has not examined plans as they are addressed to Captain Underwood.

Scope and Contents Sending to Dunn copy of Feb. 9 letter to Secretary; sorry about its length; developments in Abyssinia and Spain for a time diverted attention from Austria and in some respects eased its international position; Chancellor made reassuring speech in Bundestag on Feb. 14; will be guided by Dunn's advice concerning London Times clippings; glad to know of Department's decision not to take initiative with Austria for reciprocal trade agreement now; doing all possible to prepare way in Austria and...

Scope and Contents Regrets cannot communicate freely; some information more important if communicated immediately and waiting for courier to cover circuitous route unsatisfactory; has learned courier leaving on 22nd for Paris and will send present letter by him; enclosing copy of despatch which shows how new cotton barter deals are to be arranged; investigated [Hans] von Seeckt's death; learned von Seeckt with other defense officers were summoned by Hitler for interview; Hitler wanted to make stand in Sudeten...

Scope and Contents

Enclosure: See No. 858. Transmitting memorandum of conversation with Austrian Secretary of State for Foreign Affairs [Guido Schmidt].

Scope and Contents Enclosed with No. 857. Dined at Bulgarian Legation yesterday evening, and after dinner was drawn aside by Schmidt for talk; Schmidt asked impression of Chancellor's speech of last Sunday and Messersmith said it was his best yet, and should have favorable influence on Austria's internal and external situation; Schmidt said there would be no change in Austria's policy and that Anschluss with Germany would be disaster for Austria; mentioned approaching visit of German Foreign Minister...

Scope and Contents According to informant in Foreign Office, movement toward Hapsburg restoration proceeding and should be accomplished in six to eight months; negotiations going on with Grand Duke Otto as to conditions of return; they hope to have blessing of Mussolini; Germany and Yugoslavia certain to object, but since no revision is planned Little Entente states will probably accept; Austrian people will vote on the question, but decision will not be put to them until an affirmative vote is assured; German...

Scope and Contents Chancellor's speech before Patriotic Front last Sunday gave assurance there would be no change in Austria's internal or external policy this year; Dr. [Guido] Schmidt, Secretary of State for Foreign Affairs, supports Chancellor 100 percent; restoration question still in the fore; restoration would pose no threat to peace internally; few objections externally except in Germany; Italy supports restoration in principle if it can be accomplished without disturbing peace; Chancellor plans visit...