Paris Peace Conf. 184.011102/693
Mr. Albert Halstead to the Secretary of State64
Subject: The Austrian outlook.
Sir: I have the honor to refer to previous despatches especially my numbers 174 and 178 of December 4th and 5th,65 with regard to the situation in Austria. The outlook has not improved but has become more serious. The situation is tense. The population is more discouraged. The return of cold weather has increased the strain. Some of the foodstuffs expected have not arrived. The bourgeoisie and financial people are full of criticism of the government. Two of the Cabinet Members Messrs. Ellenbogen and Zerdik have talked of socialization as still being a probability and the Arbeiter-Zeitung seeks to prove that socialization will not interfere with industry, while Dr. Bauer preaches radicalism whenever possible.
With the country crying for help from foreign capital, such sentiments cause anxiety amongst those who are seeking a practical way to solve the Austrian problem. Dr. Renner appeals to financiers on one day and demands help from the four great powers the next, offering the same alleged assets to each, regardless of the conflict in possible interests. His conduct is explicable because he is harassed and apprehensive, and not being a practical business man, he has no idea of anything but that Austria has assets and they should be offered on all hands in the hope of getting results.
Those of the moderates who supported the social-democrats in the election because Dr. Renner and his associates seemed to be the only persons who could possibly govern the country, have now, so it is reliably reported, turned to the christian-socialists. The result is to drive Dr. Renner more toward the radicals in his party and to make their influence greater therein.
There is a demand in many quarters for a stronger government, but the christian-socialists are not ready to take over the government. They fear the problem is one that cannot be solved and they know they have not men of sufficient ability to replace the present cabinet. No man who is not infected with the Habsburg virus is available for the State Chancellor and the people though discouraged cannot see how the return of the Habsburg will help them, especially as they fear a Habsburg or Habsburg influence would make their case worse with the powers. The Austrian Christian socialists would, it appears, prefer to wait until Spring when the hardships of winter over— [Page 605] should the country survive as an entity—their chances of forming a stable government would be greater.
Dr. Renner is manifestly the strongest and best fitted man to lead Austria—but he lacks in courage and as an opportunist fears to face his radicals and to warn them to withhold their radical expressions until a more auspicious time. He apparently dares not take a strong stand against these separatist tendencies in the provinces, but discusses and bargains with them. Thus the separatist trend grows.
Meantime the pan-germanists have again become vociferous, point out the beauties of a union with Germany, and lay all the troubles of Austria to the prohibition of that union. They even think that a little later it may be possible.
Vorarlberg, as has been reported, is eager to join Switzerland, Tyrol is demanding that she be permitted to carve out her own destiny. The Tyrolese insist that they be permitted to join Germany. Reference is made to the attached newspaper account.66 In Tyrol recently there have been bread disturbances and considerable disorder during several days. The Italians are said to have encouraged these manifestations while German propaganda is reported in the provinces as well. In Salzburg the movement is growing and a demand for political and economic independence is expected in a few days. German propaganda is active here too.
Months ago I reported to the Commission to Negotiate Peace, copy going to the Department, on Tyrol as a bridge between Germany and Italy.67 In this direction there are reports of a probable secret treaty between Italy and Germany with at least part of Austria participating. When it is remembered that Italy tried to make a secret treaty with Austria, so she could retain the seized art treasures and was angry and had threatened to get even when Dr. Renner declined to negotiate—I reported on this subject at the time68—the possibility of a secret treaty with Germany is not so remote as it might seem.
In Carinthia there are manifestations of a separatist movement, so Vienna is steadily more and more in danger of being isolated and doomed to death.
The papers yesterday reported that Czecho-Slovakia has allotted 7,000,000 of Czechish crowns for a Naval base at Pressburg—40 miles from Vienna. With gunboats Vienna would be commanded. At Pressburg is also a heavy detachment of troops. There are rumors of French and Italian intrigues here, but these have been constant and for the moment need not be discussed.
Uneasiness prevails as to Vienna developments in Christmas week. The people are really hopeless, and Christmas, the time of joy in [Page 606] Vienna will be a day of despair. Hungry, unhappy, cold and discouraged anything may happen if at that time the moment comes when further bearing of the burdens of to-day is impossible. With the present effort to make the United States responsible for all the misery, notwithstanding its real attitude, demonstrations against Americans are not impossible.
I have [etc.]