1925-09-19 — Page 7

THE HONGKONG DAILY PRESS, SATURDAY.

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INGREDIENTS

PROBLEMS OF AUSTRIA

QUESTION OF UNION WITH GERMANY.

SEPTEMBER

19TH

1995

Then came 12 The Austrians, aR readily roused to optimism as anak into pessimism, put the cares of future and national trading looses: behind them It is nearly three years now since the and began to make money in rash enter League of Nations took in hand the prises. The disastrous ware of apoca financial reconstruction of Austria, and, | Istion on the expected collapse of the in spite of the many difficulties encoun French frane was followed by a financial tered, the work has made splendid procrisis when the franc was checked in its greas. The contrast between conditions downward coarse. A proportion of the to-day and in the era of infation foreign credits she had obtained was and semi-starvation is so great that lost and the credit givers, alarmed, there can hardly be anyone in Austria closed their doorn to Austrian appli who has not personal cause for gratitude. | cants,

Internal reforms havn still to be com Meanwhile, Germany's worst days had pleted, and the League control of Aus- | passed, The Dawes plan gave her trian Binance remains, but the main breathing space, and restored her problem of the restoration of Austrian stability. To Austria's surprise, she, State finance has been solved. A new who had believed herself destined to be and equally important problem is now the spoilt darling amongst Great under consideration: the correction of Britain's former enemies, found the

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trade. This is far more complicated matter, since it is not a question merely of internal reform and a foreign loan, but is a problem, which calls for a general display of international

good will for its solution.

Its main features are known. The break-up of Austria-Hungary left New a head without a body-with Austria" Vienna, the city with a population of nearly two millions, as capital of a small territory made up of wonderful Alpine ridges, beautiful woods, lakes and rivers, but so little agricultural soil that it was out of the question for the new State to feed hersell

The race now confined within little Austria had furnished-except in Hun- gary-the major part of the bureaucracy which was required to administer the Dual Monarchy with its 51 million in habitants. These former State servants in Austria to-day amount to nearly half a million. Large numbers have been discharged, but whether they are retain ed in office or not, the burden of pro- viding for these ball-million people train ed to perform functions which are largely superfluous in this little Republic of six million people remains for Austria.

which were refused to her. Austria learned the hard lesson that economics and finance have extremely little to do with sentiment and a great deal to do with trade statistics It was when she realized this that the present Anschluss movement came into being..

THE POSITION TO-DAY. All those who had on sentimental grounds maintained their desire for union with Germany found themselves reinforced by those who began to desire it on practical grounds. The proportion of "those in favour of the Anschluss to-day is very hard to estimate, but it can safely be said that the number of those who have taken the trouble to think the thing out impartially in all its bearings, and have come to the con- clusion that there is no alternative, for Austria but immediate union with Ger- many, is very small Manufacturers are divided, with a big majority vaguely in favour; this majority may recently have been strengthened by the prevailing idea that the breakup of the Stinnes trust may lessen the dangers of German pre- dominance in Austrian industry. The opposition among the industrialiste fears that the German tendency to regulate production by "cartellization" and by closing down works, making only a már- ginal profit for the beneft of the remain der, would be applied with particular severity in Austria.

The workers are in favour of union

In the division of the Hapsburg territories some of the most fertile soil of the Monarchy went to the new States of Czecho-Slovakia and Poland, and to the victors in the war, Italy, Serbis (Yugoslavia), and Rumania. In the first because, they believe that German in- Bush of national consciousness the new dustry could absorb Austria's unemploy and greatly enlarged States outed, pointing to the low proportional stripped what was already the general agures of unemployment in Germany. tendency in the post-war world to raise comparcy, with their own very high pro- tariff walls to protect native industries, portion. They believe also that their In some cases they deliberately tried, and own low wages would be raised to the are still trying to create previously non-German level. Some of the hureaucracy a hope of existent industries on their own terri-ce in the nachlüm tory, Plant which supplied the old a career in a great State such as they Austro-Hungarian Monarchy is lying were brought up to expect under the idle in Austria today bréause the new Hapsburg; others fear that German rulers of vast tracts of the former territory of that Monarchy are determined to build op their own key industries" Where, ask thesa States, should we stand in time of war if we continued to be dependent on Austria for our metals, textiles, and leather?

HOSTILE TARIFFS,

Thus Austria, who by the Treaty of St. Germain was told as definitely as if it had been set down as a clause of the Treaty that she could no longer ex- pect to feed herself, but would have to learn to live by her export trade, ex- changing goods for the food products of her neighbours, has not been placed in a position to do so. Not only was the Errounded from the start by a ring of hostile tariffs (and for, a lang period forced to pay artificially high prices for essential foodstuffs owing to the export duties imposed by neighbour- ing countries), but ahe, who had former- ly enjoyed a sheltered home market for her manufactures within the self-con tained Hapsburg Monarchy, now found that where she could export to her former territories she was exposed to severe competition, especially from Ger muny. The world-phenomenon of de creased purchasing power (often mis takenly imagined by the Austrians ta be mainly a local phenomenon in Central Europe) added to her difficulties,

Their best friend could not claim for the Austrians that they are strong and self-reliant race. They have many virtues, the most important of thích at the moment is their inability, to nures z grudge against former enemies, but neither vigour nor determination is ma outstanding Austrian quality. In 1923, in the first feeling of relief at the fox- toration of a stable currency and the cad of the nightmare of inflation, Aus tria did not trouble herself greatly about what was to be done to improve ber trade balance. The League had already helped her once; England sympathized with her misfortunes and would aid her with trade credits-oven to-day there is an unwis tendency in Austria to truss everything to the power of those blessed words foreign loans ber currency was stable, and, to her amazement, that of Germany, the big brother, weak 2 Austrians found themselves in the not unpleasing position-after all they had been through of being called exchange profiteers," when they lived and the fat of the land on holidays in Germany for next to nothing" The Anschluss (the question of the union of Austria with Germany) was relegated to the back- ground.

eficiency" would still further thin the ranks of those employed by the State, and therefore oppose the union. The Clerical party (Christian Socialist), forming the majority of the supporters of the present Government is also divid- ed, one section fearing German Protest- ant infuence, and another-probbly the greater-believing that the party's power, would be strengthened against the power. ful Austrian Social-Democratic party by union with the Catholics of Southern Germany. If a plebiscite were held to day, probably some 50 per cent. of the population of Austria would, on rather vague grounds, declare itself in favour of union with Germany.-The Times.

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