Paris Peace Conf. 184.011102/410
Mr. Albert Halstead to the Secretary of State30
Subject: Review of conditions in Austria.
Sir: I have the honor to forward herewith a review of conditions in Austria:
The political situation in Austria is uncertain. The Peace Treaty is generally regarded as more severe on Austria than had been anticipated. The disappointment is therefore very great. Discouragement is general. There is a tendency, however, upon the part of the business community to face conditions. During the absence of Dr. Renner the Workingmen’s Council has become far stronger. Renner is the one man of real force in the government. The Workingmen’s Council though of no legal standing is at the present moment practically the dictator. This is despite the fact that the peasants, and the citizens of Vienna actually form a majority. The peasants are organized but not being in the capitol city their strength does not assert itself easily. The citizens, that is those who are not workmen, lack the initiative and courage characteristic of the Council. Both they and the peasants lack the training and organized discipline of the laborers. They also are wanting in self-assertion and experience. Consequently the Workingmen’s Council exercises a disproportionate influence.
Another most important factor in the power of the workingmen is the Folksvehr. In Vienna alone there are perhaps 12,000 of these so-called citizen-soldiers. They are presumed to obey the orders of [Page 564] the government but in reality are independent except for the will of the workingmen. There is a pretense of patrolling parts of the city but as a matter of fact the men of this force have one small drill daily and spend the rest of their time in their barracks talking politics and telling stories. For this essential service each is paid 16 crowns a day and his food.
The one really efficient organization for the protection of the city is the police force which is under state control. There are 5,000 police. The police are paid 15 crowns a day as a beginning wage and advanced to about 20 crowns. They have heavy responsibility and long hours. Their head, Police President Schober is a man of unusual force and ability. Despite the fact that the policeman’s life would be a happier one in that it would be less arduous if he became a member of the Folksvehr, the policemen have remained loyal, but their efficiency is believed to decrease steadily because the example of the comfortable Folksvehr, doing no work, is most harmful. The Folksvehr is never trusted with any serious responsibility. For example the police must guard the city prisons and even those prisons where military offenders are confined.
So long as the Folksvehr remains, the Workingmen’s Council must control the state. Except for the Police President and Dr. Renner no one has yet had courage enough to stand against the Folksvehr or the Workingmen’s Council. If the Workingmen are not to continue to receive large payments from the public funds for their sustenance when out of work, a practice which does not encourage them to seek labor and which must gradually make real work distasteful, the Folksvehr must be disbanded. It is a menace to good order and a heavy expense. It has been suggested that their disbandment could be effected by the refusal to pay them further salaries and by the enrollment of a mercenary army, small in size, which would be responsible for order throughout the city. This may be attempted but whether it can be done without some disorder is a question.
On August 10th the Communists planned another attempt to overthrow the government. This naturally came to the attention of the police who are watchful of developments. It happened that Dr. Renner was here at that time to discuss the situation at St. Germain with the Chief Committee of the National Assembly. The situation was presented to him and he approved of the plan to place 4 machine guns before the barracks of the Folksvehr, Battalion 41, which was composed wholly of Communists, and to station with the guns 200 police fully armed. When the communist battalion of 300 strong was ready to march forth with arms and ammunition it discovered that the exit from the barracks was commanded by a hostile force and the planned disorder fell through.
[Page 565]It is reported that Dr. Bauer contemplates becoming more active politically but his activity will be less potent with the State Chancellor Dr. Renner back in Vienna. Renner commands the respect of all parties, but the radical socialists regard him as becoming too moderate. He will have presented to him the problem of reducing expenditures, of securing coal and raw materials and of bringing workmen back to the factories so that they can be employed remuneratively and at the same time become profitably productive. It is probable there will be some changes in the cabinet and among other changes will be a new Finance Minister,—a position of great difficulty and in every sense thankless.
There is every probability that the Peace Treaty will be signed as there is no other course possible, but all parties are criticizing it with the greatest severity.
The situation in West Hungary still presents many embarrassments. The Hungarian authorities are far from inclined to accept gracefully the transfer of parts of the three western counties to Austria. The West Hungarian Germans themselves have been persuaded to believe, so it is reported that with the heavy financial burdens which Austria must bear their position will not be so satisfactory as it would be even if they reunited with Hungary under Magyar domination. With no efficient military force to proceed to West Hungary and occupy it and with the possibility of Hungarian resistance, the solution is not easy. Some Austrians feel that the transfer of West Hungary to this country is certain to breed ill-feeling between Austria and Hungary which will be so harmful in the future as to offset the advantages that may come from this additional territory.
I have [etc.]
- Copy transmitted to the Commission by Mr. Halstead under covering letter No. 425, September 5; received September 9.↩