863.00/872: Telegram

The Chargé in Austria (Kliefoth) to the Secretary of State

25. Cabinet reorganization as foreseen in my telegram 24, February 17, 3 [1] p.m., was appointment today of Minister for Social Welfare Richard Schmidt, Christian Socialist, now Acting Mayor of Vienna in place of ousted Socialist Mayor as Minister without Portfolio. His old place in the Cabinet taken by Neustädter-Stürmer, moderate member of Heimwehr and formerly Under Secretary of State for unemployment and tourist trade. The latter’s appointment represents first political reward to Heimwehr for its services in uprising and is considered wiser politically than promotion of Fey or Starhemberg. Reward for latter constitutes difficult problem. Cabinet also decided not to withdraw from workers all social rights especially wage salaries obtained for them by Socialists. Martial law already canceled in five out of nine provinces.

Organized Jewry continuing their support of Dollfuss by offering him services of Jewish war veterans and money donations. No signs anti-Semitic outburst nor renewal Nazi terror.