These and other provisions of the secret part of the Agreement of July 11 are set forth briefly and in general terms in an affidavit by Kurt Schuschnigg, former Chancellor of Austria, dated 19 November 1945 (2994-PS). By two of those provisions Austria agreed to permit Nazi organizations on Austrian soil,-and also use of the swastika and singing of the Horst Wessel songall for German subjects. On its credit side, Austria was to get repeal of the 1,000 mark barrier on tourist trade, and in general tourist trade between the two countries was to resume.

In view of the strategy and tactics of the Nazis, these were substantial concessions made by Austria to obtain Germany's diplomatic, formal assurance of Austrian independence and nonintervention in Austrian internal affairs. The release of imprisoned Nazis to the community presented potential police problems. And as Mr. Messersmith pointed out in a 1934 dispatch, quoted in his affidavit, any prospect that the National Socialists might come to power would make it more difficult to obtain effective police and judicial action against the Nazis for fear of reprisals by the future Nazi Government against those taking action against Nazis even in the line of duty (1760-PS). The preservation of internal peace in Austria was thus dependent upon Germany's living up to its obligations under the Accord.

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(4) Germany's Continuing Program of Weakening the Austrian Government.

(a) Germany's Instructions to the Austrian National Socialists Concerning Future Plans. In the pact of 11 July 1936 Germany agreed not to influence directly or indirectly the internal affairs of Austria, including the matter of Austrian National Socialism. On 16 July 1936, just five days later, Hitler violated that provision. The report of Gauleiter Rainer to Reich Commissioner Buerckel states:

"*** At that time the Fuehrer wished to see the leaders of the party in Austria in order to tell them his opinion on what Austrian National-Socialists should do. Meanwhile Hinterleitner was arrested, and Dr. Rainer became his successor and leader of the Austrian party. On 16 July 1936, Dr. Rainer and Globocnik visited the Fuehrer at the 'Obersalzburg' where they received a clear explanation of the situation and the wishes of the Fuehrer. On 17 July 1936, all illegal Gauleiters met in Anif near Salzburg, where they received a complete report from Rainer on the statement of the Fuehrer and his political instructions for carrying out the fight. At the same conference the Gauleiters received organizational instructions from Globocnik and Hiedler."

*******

"Upon the proposal of Globocnik, the Fuehrer named Lt. Gen. (Gruppenfuehrer) Keppler as chief of the mixed commission which as appointed, in accordance with the state treaty of 11 July 1936, to supervise the correct execution of the agreement. At the same time Keppler was given full authority by the Fuehrer for the party in Austria. After Keppler was unsuccessful in his efforts to cooperate with Leopold, he worked together with Dr. Rainer, Globocnik, Reinthaller as leader of the peasants, Kaltenbrunner as leader of the SS, and Dr. Jury as deputy-leader of the Austrian party, as well as with Glaise-Horstenau and Seyss-Inquart." (812-PS)

A new strategy was developed for the Austrian Nazis. Mr. Messersmith describes it briefly in-his affidavit:

"The sequel of the agreement was the only one which could have been expected in view of all the facts and previous recorded happenings. Active Nazi operations in Austria were resumed under the leadership of a certain Captain Leopold, who it was known definitely was in frequent touch with Hitler. The Nazi program was now to form an organization through which the Nazis could carry on their opera-

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tions openly and with legal sanction in Austria. There were formed in Austria several organizations which had a legal basis but which were simply a device by which the Nazis in Austria could organize, and later seek inclusion as a unit in the Patriotic Front. The most important of these was the Ostmarkischer Verein, the sponsor of which was the Minister of the Interior Glaise-Horstenau. Through! the influence of Glaise- Horstenau and the pro-Nazi Neustadter-Sturmer, this organization was declared legal by the Courts. I made specific mention of the foregoing because it shows the degree to which the situation in Austria had disintegrated as a result of the underground and open Nazi activities directed from Germany." (1760-PS)

A report from Papen to Hitler dated 1 September 1936 indicates Papen's strategy after 11 July 1936 for destroying Austria's independence. Papen had taken a substantial step forward with the agreement of July 11. Incidentally, after that agreement he was promoted from Minister to Ambassador. Now his tactics were developed in the following terms, as explained in the last three paragraphs of his letter of September 1:

"*** The progress of normalizing relations with Germany at the present time is obstructed by the continued persistence of the Ministry of Security, occupied by the old anti-National Socialistic officials. Changes in personnel are therefore of utmost importance. But they are definitely not to be expected prior to the conference on the abolishing of the Control of Finances (Finanzkontrolle) at Geneva. The Chancellor of the League has informed Minister de Glaise-Horstenau, of his intention, to offer him the porte folio of the Ministry of the Interior. As a guiding principle (Marschroute) I recommend on the tactical side, continued, patient psychological treatment, with slowly intensified pressure directed at changing the regime. The proposed conference on economic relations, taking place at the end of October, will be a very useful tool for the realization of some of our projects. In discussion with government officials as well as with leaders of the illegal party Leopold and Schattenfroh) who conform completely with the agreement of July 11. I am trying to direct the next developments in such a manner to aim at corporative representation of the movement in the fatherland front (Vaterlaendischen Front) but nevertheless refraining from putting National-socialists in important positions for the time being. However such positions are to be occupied only by personalities, having the

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support and the confidence of the movement. I have a willing collaborator in this respect in Minister Glaise- Horstenau. (Signature) Papen" (2246-PS)

To recapitulate, this report of von Papen, discloses the following plans:

1. obtaining a change in personnel in Ministry of Security in due course;

2. obtaining corporative representation of the Nazi movement in the Fatherland Front;

3. not putting avowed National-Socialists in important positions yet, but using "nationalist" personalities;

4. using economic pressure, and "patient psychological treatment, with slowly intensified pressure directed at changing the regime."

The original plaintext version of this file is available via ftp.

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