Vienna, February 28, 1935.

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Violet Robbins
5 years ago
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1 Vienna, February 28, Dear Mr. ffcillipsf X Isst wrote you on February It, and T also wrote to Moffat on February IS, which letted you Bay have seen. Our pouch leave* at noon today and I have unfortunately been so pressed by various thing* herethat X shall be able to writ* you only very briefly* The visit of the frinoe of Wales I hesv* reported IB Is ay despatch No. SM of February 21, which goes forward by this poueh. It passed os the whole very well and the visit had s very good effect. It has riven a tremendous impetus to the tourist business and this impetus will he felt for some time. The national Basil has already fait the effects of in* creased surist business very perceptibly. The visit to Vienna was not originally on the program, but already months ago the Prince had expressed a desire to come her*. X am inclined to believe that the decision to actually come from Kitsbuhl to Vienna was the Prince's own initiative and I doubt if London advised It. There is no doubt that a good section of th* Socialists in S&gland do not like this Government in Austria and would have preferred that the Prince have so contact with it. For this reason th* contact was kept very simple and th* unoffie'al nature of the visit was well preserved. 1fy despatch will give the detedls in this respect. Th* Prince visited some of the apartment house* built by the Socialists for workers andundeubtedly did this in order to satisfy Socialist opinion in Sagland end to counteract the critioism whioh might be made of his oontaot with the Government. Curing hi* stay her* he and his entourage devoted themselves almost entirely to amusing themselv**, ; On the morning ho arrived here on* of hi* aid** *ame to the Legation and asked to see Kliefoth. He wanted to know what they could do to amus* themselves here, what restaurants to visit, what night olube, and the most amusing places. He said that they had not had much satisfaction or assistance in this respect at the British Legation. None of us here are specialists in The Honorable William Phillips, Under Secretary of State, Washington, D. 0.

2 t that lineof Vienna aranseeients, out this partieular aid probably carae to us MI his wife ia an Asiorieaa, X understand that Kr» and L'rs. Sisspson were with the Prince here rmd they also s*ont to Budapest with hint. They are, as you kn w, Americans and Krs. Simpson* to whom the Prince has beaa attached for son* tisse, is said to be a very charring as well as a very intelligent woman* In feet the entourage tha Prinoa brought with hire to Kitsbuhl and Henna was in the majority Aieerieaa. Froa what I he*r they had late atghts ia iosv? of the ten* but X think the psrty conducted theraselves»<fy well* But that they wera here to amis* themselves was suite clear. The Viennese, of course, would have been happier if they had had an opportunity to?aeet and here contact with the Prinea, but the press comment was most appreciative*. Whether the visi* had any political Wckground it 1«difficult to say, but that the Prine* had this In aind ia quite cjbser from a reserk which one of his aides jaade to Iliefoth. Be told Eliefoth thaw the Prince thought that a visit to Vienna would hava a very good palitieal affect. That the visit to Kitsbuhl, Vienna, and Budapest just at this time had its effect not only here, but ia Germany and arsong some of Austria'a aaighbors, is, I think, quite clear. The Chancellor and the Foreign Minister left for Paris as per schedule and will ba 3e aving there toraorrow for London. Soaa of the French Socialist aswspapers had really scandalous artiolea the day %efore and the day at* their arrival I ass informed. They cannot forget February of last year, but so mtch of the press over her* is venal and controlled that it is difficult to determine just what thia aosiraent really means. You will have had direst news from Paris about this so I will not go into detail. The affioial reeepttion and the press generally la Paris were snost oordial* The Frenoh Minister here and his wife went to Paris to be the*f during the visit. I an afraid that some of the Socialist press in England my piaa thsai a somewhat similar, but nore restrained, weleoaa. The disappointment, however, In England over the Gorsan attitu4» will I thiall keep the Socialist ooiaaont Eiueh sor» restrained that it would otherwise have been. As I indicated in ay last letter, however, I am sure that the Chancellat* and the Foreign Minister will have some difficult aoiaents in London. The German press, so far as I have seen it, has been extremely annoyed by the Chancellor 1 s trip to Paris and London* This I think is sufficient indication of the lack of benevolence and good intentions on the part of the present regime towards Austria,

» OB the whole I think the Chancellor 1 s visit to Paris and London will have m very good effect for in certain circles In beta capitals «better impression can be had of what this Government is

3 » OB the whole I think the Chancellor 1 s visit to Paris and London will have m very good effect for in certain circles In beta capitals «better impression can be had of what this Government is taally like and that the sen who eoapose it are decent well-meaning and by no Keens arbitrary individuals, then, too, the Chancellor sad the Foreign Minister will be able to get a better comprehension of scat of the problems which Paris and London have to deal with and It will be a particularly good experience for the Chancellor who is a very well-meaning mn%«a3 an intelligent one, but who hasmuch to fears* The effect in Germany has be very good for it 1* realised in Berlin that is London particularly the Chancellor can give some first hand inforaation and undoubtedly will, concerning German activities here which am a credit to no selfrespecting Government and which certainly cannot increase the prestlga of a regime which is making every endeavor to sake itself persona grata in London. As was to be forseen, the German reply to London and Parit on the London conversations was sost unsatisfactory. The German taction* as t pointed out in my last letter, were the worst which they could employ to help their causa* Their emphasis on the air pact* their avoidance of the other issues, and the great desire for direct conversations between England aid Berlin disturbed thosein England she were placing more confidence in German good intentions than the circumstances warrant* The German reply gave a good many circles in London a rude awakening* Xt had just the opposite effect of that which?ms intended and mada 1% easiap for the Government in London to follow the path which it knows it aan to follow* The Britina Cabinet evidently decide*! on February 20 that separate discussion of the air pact was impossible, that if there apt direct conversations between London and Berlin they must bo an the basin ef the recent London conversations between the French and the English, and that Germany must accept this basis before they can go an* As was to be foreseen, this attitude has brought Berlin into a more reasonable frame of mind and according to the telegrams we see thin morning, Berlin has made it known that she will be willing to treat with London on the whole besis of the London conversations* Tha frenoh, as you know, espressed their willingness to direct conversations between Londaa end Berlin provided Germany agreed to discuss the other questions as "well as the air pact* The French, however* were against an Baglidi visit to Berlin, hat I understand have agreed to this proceedura also

$It lookstherefore this morning as though -within a few weeks si say hava an Bnglish visit to Berlin, Warsaw, and J'regua^Slth Berlin having expressed a willingness to dieouss all of \he probleaa at$

4 if the visit it extended to take is Warsaw and probably Prague. It lookstherefore this morning as though -within a few weeks si say hava an Bnglish visit to Berlin, Warsaw, and J'regua^Slth Berlin having expressed a willingness to dieouss all of \he probleaa at issue. Everybody is soared and there has within my knowledge s inee the end of the war boon no sues spirit of accomodation and willingness to consider other points of view as there has been la that last few months* This consideration at least promises for the future* The English position, as I have so frequently pointed out in ay letters and at you to throughly appreciate, is difficult. But I am eonvinced that the question of peace or war and any measure of appeasement depends on them* X remain convinced that there can be no real appeasement Is Europe ss long as this regime remains in Germany Is anything Ilka its present form. the British attitude was eueh for a time that there was grave danger that it would strengthen this regime in Germany and thus increase the danger for England and luropa. Nov; that England has decided that she will act talk with Berlin about the air pact alone end has taken a definite stand, Germany Sat some around, as could be foreseen, for they have no other course. But a ngland it making it easier for Germany by the English visit which is to be made to Berlin* X understand that Berlin has been laying great weight en such a visit from the outset when it saw how things were shaping. It makes it easier for them to climb down* They wanted the prestige that the British visit will give them. They much preferred this, I am told, to a German visit to London. The correspondents of the London TIMES Is Berlin, Kbbutt and Eead, ere both excellent men and both af them is their articles from Berlin have been indirectly urging a British visit to Berlin*.bbutt*s artiela is the TIMES of February 19 oomes out very strongly fee? it* I was rather surprises that they should urge such a visit and in my opinion It would have been a grave mistake for such a visit to be made before arraany had agreed to discussion is the basis of the full London-Peris program* If Simon or Eden, or both, had gone to Berlin or had the German* come to London before an unequivocal German expression of slllingnesa to discuss the whole progres* it would have gravely accentuated the situation* One must understand the German psychology* I have so little time this soming to catch the pouch that I cannot go into some wary interesting problems,, /

- 8 - but you will be Interested to know that ell the information I get from very reliable sources it that the German economic situation Is really growing more difficult* I will go into this in my

5 - 8 - but you will be Interested to know that ell the information I get from very reliable sources it that the German economic situation Is really growing more difficult* I will go into this in my next letter. The whole Arbeitsbesehaffung program oa which the apeoioua proeperty, as well as the rearmament activities rest, la in danger* The floating debt has risen to not less than IS billion marks. the banks can simply not absorb any more of this pap4jp and a eon-yerelon of the whole or part m this floating debt it essential to keep the program going. Thii means that a forced loan Is practically the only alternative and that Is something which the present regime must avoid if at all possible. The extreme financial difficulties en the one hand and the necesctty for keeping the work program going have put the regime into a more reasonable frame of mind and I think the internal situation has had a good deal to do with the Government* *xpressi B of willingness to treat on the basis of the London French-Kaglish conversations. In any event, Z think it was never clearer how necessary the firm front between London, Paris and Rome is* Happily to far things are going well* But the key remains in English hands. It if e heavy responsibility for her and her friends do not always make things easier for her* sithough the French are showing very much more reasonable attitude* Italy's embarking on an old-fashioned colonial venture with Prenoh approval is e world which has outgrown such methods doer. not help the situation. I am sending a despatch to the Oepartmentg Ho. 333 of February 21, to which is appended an interview I had with dekanya in Budapest which may be of sufficient interest for you to rest* The recent execution of the two women in Berlin has net helped the present German regime in any of these capitals. If the pressure is not let up on Berlin the stage is M i so far as it oan be arranged, for more fjyporable developments within Germany and at least all will^oe^dono that can be done. la the meantime, however, e» oan depend upon the present regime^ making etery effort to keep itself going. In ay despatch No* 330, of February 20, I Ml sending some comment which may be ef interest to the Department with rega* to the aee school which has been opened for training of acents to work in foreign fields* 1 took the liberty of writing the Department on this as I had some special background which might be of interest*

vflft - 6 - ler in Austria the situation is quiet and I will write you about

6 vflft ler in Austria the situation is quiet and I will write you about developeents here la nay next letter. Cordially and faithfully yours. George S. Messersaith.

llaroh 24, r* t/iu^^ CtWu iuu /1± fteraqnal afld, oonf ^PUffi!

llaroh 24, r* t/iu*^^ CtWu iuu* /1± fteraqnal afld, oonf ^PUffi! Il r* t/iu*^^ CtWu iuu* /1± * ' ^ llaroh 24, 1958. fteraqnal afld, oonf ^PUffi! Deal* Raymond. It i«becoming wore and sore borne lit onraehow valuable it would hare been If 1 had kept A personal diary.