THE New Zealand Herald AND DAILY SOUTHERN CROSS WEDNESDAY, OCTOBER 23, 1935 A NEW AUSTRIAN PROBLEM

New Zealand Herald, Volume LXXII, Issue 22247, 23 October 1935, Page 12

THE New Zealand Herald AND DAILY SOUTHERN CROSS WEDNESDAY, OCTOBER 23, 1935 A NEW AUSTRIAN PROBLEM

Oxce more eyes have to be turned on Austria. Events there may play a big part in the contest between Italy and the League. This country, although now a mere remnant of the old Haipsburg Empire of which it was long heart and head, remains central in mid-European affairs. In politics, no less than on the map, it is the hub of a wheel of many spokes. Its contacts are full of peril, in part to itself, much more to the web of ic.ternational interests in which it is enmeshed. The new order created a£ Versailles cut off great tracts of territory, but on the restricted frontier all the old risks of trouble were left, and some new ones appeared. Good intentions have been defeated, J'or this is a changeful world, as almost all the national units surrounding Austria give proof. Only Switzerland, permanently neutral, is politically what it was. Czecho-Slovakia and Yugoslavia, with Hungary between, have grown into considerable States; Germany, under Hitler, is resurgent in ambition ; Italy, moulded by Mussolini, is now recklessly imperial; France, almost a next-door neighbour, is trying fresh ways of overcoming her fixed habit of fear. And so across Austria, whose boundaries cannot insulate, forces of rapprochement and rivalry, chiefly rivalry, move back and forth bewilderingly. France is anxious to keep touch with the three nations of the Little Entente ; the German and the Italian dictators eye each other a little askance because of similar purposes: thus, east and west, north and south, Austria is beset —a pawn in a struggle where great pieces move far and powerfully yet always with regard to this; little unit, upon the fate of which the fortunes of the game may suddenly turn. Were Austria to fall, the peoples of the Little Entente and the Eastern Danube would be swiftly thrust into a position of insecurity having grave portents for Fiance ; and either German or Italian capture of Austria would mean a clashing impact of fierqe policies too much alike to brook each other's advance. Ever since the close of the Great War there have been efforts to keep Austria on her feet. Economic difficulties arisiing from the war were complicated in Austria's case by special problems. The new republic, formed from the German-speaking provinces of the earlier kingdom, enforced its newly-bestowed authority with comparative ease, but to maintain this authority soon became a difficulty. Even a Government of long 'standing might have been staggered by the economic and financial strain. Vienna, with its 2,000,000 inhabitants, had become the capital of a small community predominantly devoted to agriculture, and a large number of brain workers and manual workers in the metropolis found no outlet for their energies—no means to supply their wants. The heavy (and then indefinite) reparation liabilities were an obstacle to the initiation of a bold constructive policy. More than in any other part of Central Europe the hardships endured by Austria, particularly in Vienna, were severe. It was realised abroad thai; something unusual would have to be done, or Austria would succumb, all Europe be handicapped in its efforts to regain prosperity, and the new political structure of a great part of the Continent be shattered. Charitable aid was tried: during 1919, 1920, 1921, loans amounting to over £25,000,000 were forthcoming from Britain, France, Italy, the United! States and other countries, i and in addition there were straight-out gifts of about £10,000,000. For a time Austria's need was thus met, but tq continue living on credits, charity and speculation was impossible. In 1921 the makeshift was abandoned for measures more heroic still, but measures promising real reconstruction : the four principal exenemy Powers agreed to release the assets held as security for their loans, and the other countries, no fewer than thirteen, were invited to do the same. Further, the matter was made one for League consideration, and in that year and the next the Financial Committee and the Secretariat achieved much for the distressed State, initiating and directing efforts that continued until 1926. Other nations have been similarly helped, but the instance of Austria is classic. Memories of this succour make the present reluctance of Austria to put loyalty to the League before friendship for Italy difficult to understand t —until the Nazi invasion of recent years is remembered. This invasion has been persistent and ruthless, in pursuance of Hitler's determination to extend the Reich to all regions having German affinities. Dr. Dollfuss, Austria's brave Chancellor, was one of the victims of this Nazi policy. Mainly to Mussolini's resolve to keep Austria a buffer Stiite between Germany and Italy, the checking of Hitler's purpose has been due, and a feeling of dependence on Italy is now prompting the action of Austria's strongest Ministers. They have had their way in the removal from Cabinet ol 1 Major Fey, a step taken to hinder an understanding with Germany and Pol and; and' von Starhemberg will now be able to act as he wishes in standing by Italy. Exports to Italy, it appears, will be taken in liquidation of the Austrian debt to that country. This will tell against this success of the League in

imposing sanctions, but a graver danger to Europe may emerge in Austrian politics, for the Cabinet changes associated with Major Fey's dismissal are bound to reduce popular support for the Government. If Austria should become the prey of political faction it will be difficult to avert a domestic crisis inimical to some adjacent countries, and Europe will be faced with an old problem in a new and vexing form.