863.00/1446: Telegram

The Ambassador in Italy (Phillips) to the Secretary of State

65. I called this morning on my British colleague and was shown an open telegram which he had just received from the Foreign Office containing the substance of a conversation between Lord Halifax and Ribbentrop in which Halifax had strongly condemned the methods used by the German Government to attain its ends in Austria. He had pointed out that these methods would have as a result the slowing up of British efforts to bring about better relations between the two Governments.

I was also shown a telegraphic report from Henderson, the British Ambassador in Berlin, containing assurances which he had received that the Austrian people would be permitted a free plebiscite to decide their future course and that the German troops now in Austria would be withdrawn as soon as tranquility had been restored.

Lord Perth had received instructions to call upon the Duce to ascertain his attitude concerning Austrian developments. Ciano, however, felt that such a call might be misunderstood and Lord Perth had withdrawn the request. Ciano had informed him that the Italian Government could do nothing in the circumstances; that Schuschnigg had proceeded against their advice with regard to the referendum; that 30 percent of the population of Austria were young Nazis thoroughly organized; that the remaining 70 percent were broken up into obstinate parties with no combined organization; and that therefore the 30 percent of young Nazis completely dominated the country and were in a position to carry out their own plans.

I also called this afternoon upon my Austrian colleague to express my sympathy. He feels apparently that the statement of Schuschnigg [Page 438] had been “crazy” in trying to launch a plebiscite on such short notice and without preparation. He himself had been forbidden by his Government to consult Ciano or Mussolini to ascertain their views with regard to the plebiscite and this he felt had been another serious blunder on the part of Schuschnigg. He thought that the new elections might take place in 3 or 4 weeks and that when they did occur 90 percent of the people would be found in favor of Germany and from that moment Austria as a state, he said, would cease to exist. In reply to my inquiry as to what in his opinion would be the effect on the Catholic Church in Austria and upon the Austrian Jews, Berger Waldenegg replied that they would both have the same treatment as that now accorded to the Church and Jews within Germany.

He made it quite clear that in his opinion “the game was up” and that Austria would soon become a part of the German Reich.

Phillips