Austria's Communist Past: Cold War Era

Austria was not a communist country during the Cold War. From 1945 to 1955, it was jointly occupied by the four Allied powers—the Soviet Union, the United States, the United Kingdom, and France—much like Germany. However, the geography of Austria and Vienna did not lend itself well to an easy partition. Austria was divided into four occupation zones, with Vienna being subdivided and the central district collectively administered by the Allied Control Council.

The Moscow Declaration of 1943 stated that Austria was a separate nation and the first victim of Hitler's aggression, but the Allies had doubts about its viability as an independent state. The British floated ideas such as a Danubian confederacy or a political union with Bavaria, but these plans did not come to fruition. The Americans were initially reluctant to commit to a full-scale occupation of Austria but eventually did so due to pressure from their allies and the fear of a supposed national redoubt in the Alps.

During the early years of the occupation, Austria became an important site for intelligence-gathering operations between the Americans and Soviets. The Truman administration proposed an East-West division of Austria in 1947, but the Soviets rejected this idea. The communists' defeat in the November 1945 Austrian elections underscored to the Soviets the generally unfavorable attitude many Austrians held towards them.

After Stalin's death in 1953 and the resulting Khrushchev Thaw, the Soviets saw a renegotiation of the occupation as an opportunity to signal a new direction in their relationship with Europe. The Soviet Union negotiated an end to the Austrian occupation, which occurred in 1955 with the signing of the Austrian State Treaty, on the condition that Austria remain neutral in the Cold War. This decision created a gap in NATO's German and Italian front line, complicating NATO's military plans.

While Austria was not communist during the Cold War, it was heavily influenced by Western culture. Its borders to the West were open, and American cultural missions flooded the country with programs and materials as part of their strategy of cultural diplomacy. Western products, tourists, and other connections further integrated Austria into the West, even though it could not officially join Western defensive alliances.

Austria was jointly occupied by the four Allied powers post-WWII

Austria was jointly occupied by the four Allied powers—the United Kingdom, the Soviet Union, the United States, and France—after World War II. The Allies agreed to treat Austria as the first victim of Nazi aggression and liberated and independent after the war. However, this occupation was not without challenges.

The Four Zones

In the immediate aftermath of World War II, Austria was divided into four occupation zones, with Vienna, the capital, at the centre of it all. The city was subdivided into four sectors, each controlled by one of the Allied powers, while the central district was collectively administered by the Allied Control Council. The zones outside of Vienna were also divided among the four powers, with the French Zone in the west, the American Zone in the northwest, the British Zone in the south, and the Soviet Zone in the east.

The First Year of Occupation

The Soviet commander Fyodor Tolbukhin's troops were the first to cross the former Austrian border in March 1945, and the Soviet politician Karl Renner established contact with them. Initially, Joseph Stalin had planned to install a cabinet of Austrian communists in exile, but Tolbukhin's telegram changed his mind in favour of Renner. On April 20, 1945, the Soviets instructed Renner to form a provisional government without consulting their Western allies. Renner's cabinet took office a week later, declaring Austria's independence from Nazi Germany and calling for the creation of a democratic state. The Western allies were suspicious of Renner and refused to recognise his government, believing it to be a puppet state.

The Allied Council

On September 12, 1945, the Allied Council of four military governors held its first meeting in Vienna. They refused to recognise Renner's claim of a national government but allowed him to extend his influence into the Western zones. Renner appointed Karl Gruber, a vocal anti-communist, as Foreign Minister to reduce Communist influence. On October 20, 1945, the Western allies recognised Renner's reformed cabinet and approved the country's first legislative election.

The First Elections

The election, held on November 25, 1945, was a blow to the Communist Party of Austria, which received just over 5% of the vote. A coalition of Christian Democrats (ÖVP) and Social Democrats (SPÖ) assumed control, offering the position of Federal Chancellor to Christian Democrat Julius Raab. However, the Soviets vetoed this choice due to Raab's previous membership in the austrofascist Fatherland Front. Instead, President Karl Renner, with parliamentary consent, appointed Leopold Figl, who was barely acceptable to the Soviets.

The Cold War in Austria

The Cold War in Austria began in the spring of 1946, a year before the global Cold War erupted. The Potsdam Agreement allowed the confiscation of "German external assets" in Austria, which the Soviets used to their advantage, dismantling and shipping industrial equipment valued at around US$500 million to the East. American High Commissioner Mark W. Clark strongly opposed Soviet expansionist intentions, and his reports, along with George F. Kennan's "The Long Telegram," supported Truman's tough stance against the Soviets.

The Second Control Agreement

On June 28, 1946, the Allies signed the Second Control Agreement, loosening their control over the Austrian government. Parliament was effectively relieved of Allied control, and its decisions could only be overturned by a unanimous vote of all four Allies. Soviet vetoes were routinely voided by Western opposition. Over the next nine years, Austria gradually emancipated itself from foreign control, moving towards full independence.

The Marshall Plan

Austria's economy, including USIA enterprises, reached 61% of pre-war levels by 1947. However, consumer goods production lagged, and food remained a significant issue. The country survived on meagre rations, with daily rations below 2000 calories until the end of 1947. The Western Allies faced challenges in feeding the population in their zones, as 65% of Austrian agricultural output and nearly all oil were concentrated in the Soviet zone.

The End of Occupation

Austria's occupation ended with the Austrian State Treaty, which came into force on July 27, 1955. After promising perpetual neutrality, Austria was granted full independence on May 15, 1955, and the last occupation troops departed on October 25 of that year. The country enacted a Declaration of Neutrality, pledging never to join a military alliance such as NATO or the Warsaw Pact and refusing to allow foreign troops to be based within its borders.

Austria was divided into four occupation zones

Immediately after World War II, Austria was divided into four occupation zones, each controlled by one of the four Allied powers: the United Kingdom, the Soviet Union, the United States, and France. This division was similar to that of Germany, which was partitioned into four zones before being split into East and West Germany in 1949. However, the geography of Austria and its capital, Vienna, did not lend itself to easy partition, making the military administration of the country cumbersome.

The four zones were determined on July 9, 1945, with the movement of occupation troops continuing until the end of the month. The French and American zones bordered their countries' respective zones in Germany, while the Soviet zone shared borders with future Warsaw Pact states. Here is a breakdown of the zones:

• Vorarlberg and North Tyrol (French Zone)
• Salzburg and Upper Austria south of the Danube (American Zone)
• East Tyrol, Carinthia, and Styria (British Zone)
• Burgenland, Lower Austria, and the Mühlviertel area of Upper Austria, north of the Danube (Soviet Zone)

Vienna, the capital, was also divided among the four Allies, with the central district being collectively administered by the Allied Control Council.

The determination of these zones disregarded the administrative changes made after the Anschluss in 1938, when Austria was annexed by Nazi Germany. The Western powers applied these changes in their zones, while the Soviet Union did not.

The occupation of Austria ended with the Austrian State Treaty, which came into force on July 27, 1955. After promising perpetual neutrality, Austria gained full independence on May 15, 1955, and the last occupation troops departed on October 25 of that year.

The Soviets exploited Austria economically

Austria was not a communist country during the Cold War. From 1945 to 1955, it was jointly occupied by the four Allied powers: the United Kingdom, the Soviet Union, the United States, and France.

The Soviet Union did, however, exploit Austria economically during its occupation. The Potsdam Agreement allowed the confiscation of "German external assets" in Austria, and the Soviets used this to expropriate and dismantle Austrian economic assets, particularly in the oil industry. They also demanded that Austria feed and clothe the Red Army, which was an enormous burden on the war-ravaged country.

Confiscation of German Assets

The Potsdam Agreement, signed by the US, UK, and Soviet Union, allowed for the confiscation of "German external assets" in Austria. The Soviets used the vagueness of this definition to their advantage, expropriating and dismantling industrial equipment and shipping it to the Eastern Bloc. This action was justified under the claim that these assets were German property with German owners or investors at the end of the war. According to historian Günter Bischof, the Soviets extracted resources worth around US$500 million from Austria in less than a year.

Demanding Occupation Costs

The Soviet Union, along with the other occupying powers, levied the costs of keeping occupation troops in Austria on the Austrian government. Initially, Austria had to pay the entire bill, but in 1946, occupation costs were capped at 35% of Austrian state expenditures, to be split equally between the Soviets and the Western Allies. This still placed a heavy burden on the war-ravaged country.

Forcing Austria to Feed and Clothe the Red Army

In addition to the direct financial costs, the Soviet Union, like the other occupying powers, demanded that Austria provide food and clothing for its troops. Given the number of troops, this was an enormous burden on the country, which was already struggling with food shortages and rations.

Using NKVD Teams for Reparations

The Soviets deployed NKVD (Soviet secret police) teams to extract reparations through requisitions. These teams seized industrial plants, production installations, and various goods, further exploiting Austria's economic resources.

Forcing Control of Austrian Oil Fields

The Soviets assumed control of Austrian oil fields in their occupation zone, which accounted for nearly all of Austria's oil production. This gave them a monopoly over the oil industry and allowed them to exploit this valuable resource for their own gain.

Creating the USIA

In 1946, the Soviets changed their economic policy from outright plunder to running expropriated Austrian businesses for profit. They amalgamated the expropriated assets into the USIA, a conglomerate of over 400 enterprises. While the USIA controlled less than 5% of Austrian economic output, it had a substantial or even monopolistic share in key industries like glass, steel, oil, and transportation. The Soviets ran these businesses for profit, refusing to reinvest profits and allowing assets to decay over time.

In summary, the Soviet Union exploited Austria economically during its occupation by confiscating assets, demanding occupation costs, forcing Austria to provide for its troops, using the NKVD for reparations, controlling key industries, and creating the USIA to run expropriated businesses for profit. These actions had significant negative consequences for Austria's economy and society during the early years of the Cold War.

Austria was granted independence in 1955

Austria was granted independence on 15 May 1955 when the Austrian State Treaty was signed. This treaty was signed by the governments of the Soviet Union, Great Britain, the United States, and France, and it arranged for the withdrawal of all occupation forces. The treaty was the result of prolonged negotiations, which were stalled by the onset of the Cold War.

Austria's independence was unique in postwar Europe. In 1938, it had been the only nation to be annexed in its entirety by Nazi Germany, and this raised questions during World War II about the extent to which the country was a victim of Nazi aggression or a collaborator. At the Potsdam Conference in 1945, the Allies agreed that they would jointly occupy Austria in the postwar period, dividing the country and its capital, Vienna, into four zones.

Austria's independence was complicated by its geography, which did not lend itself to an easy partition. Vienna, in particular, presented a challenge, with the Allies forming unified patrols (four men in a jeep) that proved clumsy and heightened suspicions during the early Cold War. The country's independence was further complicated by the fact that the Allies held significant doubts about the viability of Austria as an independent state. Austria's seeming inability to resist Hitler in 1938 validated the opinion that the post-Versailles Treaty Austrian state was too small to keep out aggressors, but its strategic location invited interlopers to interfere in Austrian politics.

The first years of the occupation made Austria one of the important sites for the early Cold War. The Americans' close proximity to Soviet troops and the unsettled nature of the occupation made it an epicenter for intelligence-gathering operations. The communist electoral defeats in the November 1945 Austrian elections underscored to the Soviets the generally unfavourable attitude many Austrians held towards them. The fear in Moscow was that settling the Austrian question on terms proposed by the West would only benefit the West and undercut Soviet security. The result was a stalemate in Austria until the negotiations for the State Treaty began after Stalin's death in 1953.

After Stalin's death, the Soviets saw a renegotiation of the occupation as an opportunity to signal a new direction in their relationship with Europe. By negotiating an end to the Austrian occupation, the Soviets hoped that their position on a neutral Germany would gain traction in West Germany. On a more practical level, the ending of the occupation would end what was becoming a costly occupation for the Soviets.

The Austrian State Treaty was signed on 15 May 1955, and it ended seventeen years of occupation by foreign troops. As promised, the newly independent nation declared and maintained its neutrality for the remainder of the Cold War.

Austria remained neutral during the Cold War

Austria was not communist during the Cold War. In fact, it remained neutral.

In the immediate aftermath of World War II, Austria was divided into four occupation zones, jointly occupied by the United Kingdom, the Soviet Union, the United States, and France. Vienna was similarly subdivided, but the central district was collectively administered by the Allied Control Council.

Austria's geography did not lend itself well to an easy partition, and the military administration and occupation of Vienna was particularly cumbersome. The country became an important site for intelligence-gathering operations, with American and Soviet troops in close proximity.

Austria's status was a controversial subject in the early Cold War. The Moscow Declaration of 1943 had avowed that Austria was a separate nation that was the first victim of Hitler's aggression. However, the Allies held significant doubts about the viability of Austria as an independent state. Austria's seeming inability to resist Hitler in 1938 validated the opinion that the post-Versailles Treaty Austrian state was too small to keep out aggressors.

The Soviets wanted to keep their options open in the postwar order, while the British floated various solutions such as a Danubian confederacy or a political union with Bavaria that would strengthen postwar Austria and prevent a resurgence of Prussian-German militarism. These plans proved stillborn, but the problem of Austria remained.

The Americans were initially reluctant to commit to a full-scale occupation of Austria and were content to push only for an occupation of Vienna. They eventually switched course due to pressure from their allies and the fear of a supposed "national redoubt" in the Alps.

The communist's electoral defeats in the November 1945 Austrian elections underscored to the Soviets the generally unfavorable attitude many Austrians held towards them. The fear in Moscow was that settling the Austrian question on terms proposed by the West would only benefit the West and undercut Soviet security. The result was stasis in Austria until the negotiations for the State Treaty began after Stalin's death in 1953.

The Soviets saw a renegotiation of the occupation as an opportunity to signal a new direction in their relationship with Europe. By negotiating an end to the Austrian occupation, they hoped to gain traction in the FRG for their position on a neutral Germany. On a practical level, the ending of the occupation would also relieve them of what was becoming a costly endeavour.

The Austrian State Treaty, signed on 15 May 1955, ended the state of war in the country. In exchange for the withdrawal of occupation forces, the Austrian Government had to proclaim the country's military neutrality. This was a marked change from other Soviet peace treaties and carried no defense obligations that favored the Soviets. The Americans gambled that although neutral, Austria would politically and culturally align itself with the West. This gamble did pay off as the emerging political consensus in Austria was largely pro-Western.

The Western influence of the Cold War upon Austria was largely cultural. Austria's borders to the West were open, while those to the Eastern bloc were mostly closed. American cultural missions flooded Austria with programs and materials as a part of the US's strategy of cultural diplomacy. Western products, tourists, and other connections further integrated Austria into the West, even if it could not join the various Western defensive alliance systems.

Austria thus emerged as something of an anomaly during the Cold War: culturally and economically connected to the West, but politically restrained by the Treaty from joining either Superpower bloc.

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