Austria's Response: Strategies And Adaptations

The Austrian government has responded to a variety of challenges over the years, including Nazi aggression, Allied occupation, and communist paramilitaries. In the 1930s, Austrian chancellor Engelbert Dollfuss transformed the country into a right-wing authoritarian regime, known as the Corporate State or Austrofascist state, in response to the rise of the Nazis and political instability. The Dollfuss regime banned the Austrian Nazi Party and its affiliates, but this led to economic sanctions from Germany. During Allied occupation after World War II, the Austrian government faced challenges such as the expropriation of economic assets by the Soviets and decisions by the Council of Foreign Ministers that disregarded popular opinion in Austria.

The Austrian government's response to Nazi terrorism

In the face of Nazi terrorism, the Austrian government worked to maintain its power and preserve Austrian sovereignty. In June 1933, in response to a fatal Nazi bombing, the Dollfuss regime banned the Austrian Nazi Party and its affiliates. On 25 July 1934, Austrian Nazis attempted to overthrow the Austrian government. They shot and killed Chancellor Dollfuss. However, the majority of Austrians remained loyal to the government, and the Austrian military and police forces quickly defeated the conspirators. The coup attempt failed.

Dollfuss's successor, Kurt Schuschnigg, followed a similar political course. In 1935, he used the police to suppress Nazi supporters, gathering them in internment camps. In 1936, Schuschnigg signed an agreement with the German ambassador, Franz von Papen, in which he agreed to the release of Nazis imprisoned in Austria, and Germany promised to respect Austrian sovereignty. Under the terms of the Austro-German treaty, Austria declared itself a "German state" that would always follow Germany's lead in foreign policy. However, this did not satisfy Hitler, and the pro-German Austrian Nazis grew in strength.

The Austrian government's response to the German government's economic sanction

In response to the German government's economic sanction, the Austrian government worked to maintain its power and preserve Austrian sovereignty. In June 1933, the Dollfuss regime banned the Austrian Nazi Party and its affiliates in response to a fatal Nazi bombing. The sanction, referred to as the '1,000 Mark Sperre', required Germans to pay a 1,000 Mark customs fee to travel to Austria, crippling Austria's tourism industry.

In an attempt to maintain Austrian national integrity, Schuschnigg announced his intention to hold a consultative referendum on the independence of Austria in March 1938. However, Hitler responded by mobilising the 8th Army for the planned invasion, and the German government demanded the postponement or abandonment of the referendum.

Despite the Austrian government's efforts, the populace was relieved that bloodshed had been avoided with the German annexation of Austria. Many Austrians were aware of Hitler's economic achievements and hoped for an improvement in their everyday lives.

The Austrian government's response to the rise of the Nazis

The Austrian government responded to the rise of the Nazis by transforming Austria from a democratic republic into a right-wing authoritarian regime under the control of Austrian chancellor Engelbert Dollfuss. This government, known as the Corporate State (Ständestaat) or the Austrofascist state, was diplomatically aligned with Fascist Italy and authoritarian Hungary. Dollfuss was committed to crushing the political left in Austria, but he and the Austrofascists were not Nazis.

In June 1933, the Dollfuss regime banned the Austrian Nazi Party and its affiliates, making the Nazi movement illegal in Austria. This was in response to a fatal Nazi bombing. The Austrian Nazis responded by staging disruptive protests and brawling with political opponents and the police. They also set off explosives and tear gas bombs in public places and Jewish-owned businesses.

In late May 1933, the German government announced an economic sanction against Austria, referred to as the “1,000 Mark Sperre”. This crippled Austria’s tourism industry, which was highly dependent on Germans. Despite Nazi terrorism, the Austrian government worked to maintain its power and preserve Austrian sovereignty.

On 25 July 1934, Austrian Nazis attempted to overthrow the Austrian government. Members of the Vienna SS took control of the Austrian chancellery, where the cabinet had been meeting, and shot and killed Chancellor Dollfuss. However, the majority of Austrians remained loyal to the government, and the coup attempt failed.

In February 1938, the German ambassador in Vienna, Franz von Papen, arranged a meeting between Hitler and Schuschnigg at Obersalzberg in Gaden in Bavaria. Hitler threatened to invade Austria and forced Schuschnigg to implement measures favourable to Austrian Nazism. Despite steadily increasing German influence, Schuschnigg endeavoured to maintain Austrian national integrity.

The Austrian government's response to the Soviets

The Soviets pulled out of Austria in 1955, along with the Western Allies, in exchange for Austria's promises to remain neutral during the Cold War. During the interwar period, the Soviet Union denounced the victorious Western powers' prohibition of the Anschluss. Later, they showed outright opposition to the Nazi drive for German unification in Central Europe. The Austrian Communist Party and international communism promptly executed the same turnabout. In accordance with the new line, during and at the end of World War II, the Soviet Union joined the Allies in supporting the restoration of Austrian independence and sovereignty.

The Potsdam Agreement allowed the confiscation of "German external assets" in Austria, and the Soviets used this vagueness to their advantage, dismantling and shipping industrial equipment valued at around US$500 million to the East. American High Commissioner Mark W. Clark vocally resisted Soviet expansionist intentions, and his reports to Washington supported Truman's tough stance against the Soviets. The US and Austria kept in close touch regarding any increases in Soviet pressures against Austria, with the US agreeing that the obligations in the State Treaty were sufficient to guarantee Austrian neutrality.

The Austrian government's response to the USIA

The Austrian government refused to recognise the USIA's legal title over its possessions. In response, the USIA refused to pay Austrian taxes and tariffs. This competitive advantage helped to keep USIA enterprises afloat despite their mounting obsolescence. The Austrian government also tried to counter the victorious powers' claim to German ownership by nationalising these companies. The Western Allies accepted this approach, but the Soviet Union insisted on its rights. The Austrian government was anxious about Soviet influence and invested Marshall Plan funds into competing businesses outside of the Soviet zone. The USIA monopolists gradually lost their advantage. Some USIA-run Austrian companies moved their personnel and operations to the West, leaving the Soviets with empty shells. The Austrian government also feared paramilitary communist gangs sheltered by the USIA and scorned it for being "an economy of exploitation in colonial style".

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