Paris Peace Conf. 184.011102/220
Mr. Albert Halstead to the Commission to Negotiate Peace
[Received July 29.]
Subject: Resignation of Bauer and its effects.
Sirs: I have the honor to forward herewith a translation of Dr. Bauer’s letter18 resigning his position as Minister of Foreign Affairs. The letter shows distinctly that Dr. Bauer, though he denied several days ago that he had endeavored to make an arrangement with Italy that would bind Italy to Germany and to German-Austria—this naturally included consideration for the Germans in Czecho-Slovakia and in Jugo-Slavia—did make that effort. The idea, apparently was that Austria should be the bridge between Italy and Germany, with Tyrol a most important span of that bridge.
It was my first impression that Dr. Bauer’s resignation did not actually lessen his influence but meant simply his retirement from the Ministry of Foreign Affairs while he continued to be a member of the Cabinet. In that position he would by his compelling personality continue his very great influence over the government. It seemed therefore as if the resignation were more a stage play to influence the action of the Peace Conference than an actual lessening of his political power.
It would now appear as if this first impression was perhaps incorrect. Conversations with a number of people would indicate that the change is a real one and that Bauer’s influence may be greatly reduced, he having suffered a political check. It had been long known that several members of the Cabinet were in no sense in agreement with [Page 552] Dr. Bauer and regarded his coquetting with the Communists as decidedly injurious to German-Austria’s interests. In fact, Dr. Schumpeter the Minister of Finance did not hesitate in private conversation to express his entire abhorrence of the Bauer policy and indicated that several other members of the Cabinet agreed with him. It appeared at the time, however, as if Schumpeter, a most pronounced conservative, was unable to face new facts and exaggerated Bauer’s attitude. It is now evident, however, that Dr. Renner in his work at St. Germain was decidedly handicapped by Bauer’s attitude and that, when he learned of the report of Police President Schober on the activities of the Hungarian Legation and emissaries in promoting Communism and disorder he, Dr. Renner, had written to Bauer stating how much his work to assist German-Austria was impaired. It is believed also that Dr. Renner’s views were indicated to the Austrian Correspondence Bureau, for what they are now understood to be was at the time published in the press of Vienna.
Upon receiving Dr. Renner’s letter Dr. Bauer at once tendered his resignation. Without accepting or declining it Dr. Renner replied to the Bauer letter, which was dated July 13th, stating that he would discuss the matter with him at Feldkirch when he came there after the peace treaty was completed. It should be remembered that at the meeting of the Workmen’s Council of German-Austria several weeks ago Dr. Bauer’s speeches, in which he indicated a theoretical belief in a world revolution but that it was at present impossible because the city of Vienna would be starved, had seriously annoyed the workmen from the provinces. In that meeting various speeches were made criticising Bauer’s position and expressing wonderment and inability to understand it. This, as is now known, was the beginning of Bauer’s fall. The Schober report weakened his position much more.
It is stated, though not authoritatively, that Dr. Renner received intimations in Paris that the French, M. Clemenceau especially, were very distrustful of Bauer and his politics, and that this was indicated to Dr. Renner with the implication that German-Austria’s chances would be improved if Dr. Bauer retired. Editorials in M. Clemenceau’s paper were said to have shown this.
It is very likely that Bauer’s resignation will stiffen the moderate men in the Cabinet and give them moral courage to stand for more conservative action, while Bauer himself, whose tactics were not sufficiently radical to satisfy the extremists weakened him with the Social Democrats who were opposed to Communism and felt that his playing with both sides embarrassed their own policies. There is an intimation that Dr. Bauer will not long continue in the Cabinet and that in order to let him down gently his cabinet rank is continued. Deutsch the Minister of War and consequently in control of the Volkswehr is regarded as the next possible retirement. A careful reading of that portion of [Page 553] the Treaty of St. Germain which limits the German Austrian Army is interpreted by keen minds as practically making it necessary for the Volkswehr to be disbanded, the details touching the new German-Austrian Army not covering such a force as the Volkswehr. The question naturally arises in this connection as to who in German-Austria is strong enough to disband the Volkswehr, it being remembered that the proposal to reduce its numbers gave the impetus or suggested the opportunity to the Communists to make their attempted coup d’état which failed so miserably on the 15th of June. It is this same lack of power that causes people to wonder how German-Austria will be able to take possession of that part of West Hungary which is assigned to her in the Peace Treaty.
Dr. Schumpeter, the Minister of Finance, it is rumored, is also likely to retire. How soon cannot be told, but there is a feeling that he has not grasped the financial situation, has been more of a theorist than a practical financier and that in German-Austria’s critical situation an expert financier must replace him.
Whatever be the final terms of the peace treaty—and this doubt as to whether it is now in its final shape is generally prevalent—it is felt that it cannot by any possibility be an instrument which will be acceptable to this country. Therefore in order that the responsibility for signing the treaty may be distributed amongst all parties, it is suggested, in fact proposed, that the Ministry be reorganized and that not only Social Democrats and Christian Socialists (conservatives) but the German Peoples Party, which has some members in the National Assembly, be represented in the new cabinet. As yet there is no indication as to who will be the permanent Foreign Minister, it being believed that Dr. Renner has accepted the portfolio only until a suitable man can be selected.
There is no confirmation, of the reported intention of Dr. Fritz Adler to resign from the Workmen’s Council, but he and Dr. Bauer have worked together and one of the results of Bauer’s retirement may be the weakening of the influence of that Workmen’s Council and the increased power of the Peasants’ Council, together with steps to make the Citizens’ Council, at present a very hesitating body, more of a force.
In reference to the above discussion of the political situation of German-Austria I think I should add that I have endeavored to give what is the opinion most prevalent and that it seems a little too early to accept this view as wholly accurate. It should be remembered that Dr. Bauer has a lust for power, is a strong personality in the present Cabinet, and that he has exceptional resourcefulness and eloquence. It may be possible that his present check will drive him more to the left or inspire him to other steps to recover his influence.
I have [etc.]
- Not printed; filed separately under Paris Peace Conf. 184.011102/229.↩