HC Deb 21 February 1938 vol 332 cc6-12
10. Mr. A. Henderson

asked the Secretary of State for Foreign Affairs whether he is now in a position to make a statement on the recent Austro-German agreement?

Sir J. Simon

Yes, Sir. It is now possible to make a somewhat fuller statement on the Austrian situation than was made by my right hon. Friend last week. From information received from Austrian sources it is clear that no actual Treaty instrument was drawn up as a result of the conversations at Berchtesgaden, and it follows, therefore, that no document of this kind will be published. I am informed, however, again from Austrian sources, that the main points of the agreement reached at Berchtesgaden are as follow:

The Austrian Chancellor will take far-reaching and conciliatory measures with a view to furthering the internal pacification of Austria, while on the other hand Germany re-affirms the continuance of the Austro-German Agreement of July, 1936, and renews her assurances of nonintervention in Austrian domestic affairs. The consolidation of Austrian internal affairs, as well as the strength of the Patriotic Front movement in Austria, makes it possible for the Austrian Government to take up a more friendly attitude towards those who have hitherto held aloof from the main trend of Austrian politics. In particulars we learn that the following measures have been taken by the Austrian Chancellor:

  1. (1) A general amnesty has been declared covering all political offences committed before 15th February of this year, provided the offender has remained in Austria. This amnesty has been extended to school and university students and its execution was completed on 19th February. All those released must sign an undertaking of good behaviour until 31st December, 1941.
  2. (2) The Government has been reconstructed and in the new Cabinet Dr. von Seyss-Inquart, the Minister for the 7 Interior and Security, will be the only representative of National-Socialism, apart from Dr. Glaise-Horstenau, who was also a member of the last administration.
  3. (3) The cases of public officials who were deprived of their pensions are to be re-examined. It is understood that in general these pensions will be restored and the officials will receive an appropriate indemnity.
  4. (4) Austrian National-Socialists will be legally permitted to indulge in political activity, within the framework of the Patriotic Front, and of other Austrian organisations, to the same extent as is permitted to other groups, provided they are loyal to Austria and her constitution. It should be pointed out that the Austrian Constitution of 1934 remains unchanged.
To complete the information at our disposal I should add that an official communiqué published in Austria states that the above measures cover all the measures of which the execution was contemplated at Berchtesgaden. The communiqué continues to the effect that, contrary to rumour, the bases of Austria's monetary and economic policy will not be changed in any way, but that the endeavour to intensify commercial exchanges between Austria and Germany will be continued. It is also announced that measures are to be taken in Germany designed to exclude the interference of German Party Offices in Austrian domestic affairs.

Mr. Arthur Greenwood

While thanking the right hon. Gentleman for that statement, which was very interesting in more senses than one, may I ask whether His Majesty's Government accept this new technique of aggression on the part of Germany?

Mr. A. Henderson

In view of the provisions of the Geneva Protocol of 1922, under which Austria undertook not to enter into any negotiations that might compromise her independence, do the Government propose to take action under that Treaty?

Sir J. Simon

That is not a matter which I can deal with in answer to a supplementary question.

Mr. Greenwood

Will not the right hon. Gentleman consider making a very early statement as to the attitude of the Government to this problem, saying whether it is part of their policy to make no answer to this new technique of aggression?

11. Lieut.-Commander Fletcher

asked the Secretary of State for Foreign Affairs whether the Anglo-French declaration of 3rd February, 1935, regarding Austrian independence and integrity, was in any way contingent upon the support of other countries?

Sir J. Simon

In the declaration referred to, His Majesty's Government stated that they considered themselves to be among the' Powers which would, as provided for in the Agreement of 7th January, 1935, between France and Italy, consult together if the independence and integrity of Austria were menaced. His Majesty's Government did not pledge themselves to any further course of action and the question of support by other countries does not, therefore, arise. His Majesty's Government are, in fact, in consultation with the French Government.

20. Miss Wilkinson

asked the Secretary of State for Foreign Affairs how many times Britain has guaranteed the independence of Austria since the Armistice; and how many assurances that Britain will assist in the maintenance of the independence of Czechoslovakia have been given to that State since the same date?

Sir J. Simon

The obligations of His Majesty's Government towards Austria and Czechoslovakia are those which every member of the League of Nations assumes towards all its fellow members. Apart from these, His Majesty's Government have given no special guarantees towards either country.

Miss Wilkinson

Do I understand from the right hon. Gentleman that if we give general guarantees we do not expect to keep our word?

Sir J. Simon

I do not know to what general guarantees the hon. Member is referring.

Miss Wilkinson

Does the right hon. Gentleman know what the general guarantees mean in the answer which he has given us?

Mr. Vyvyan Adams

Have the Government any evidence to confirm the report that the German Government have asked for the withdrawal of Austria from the League of Nations?

21. Colonel Wedgwood

asked the Secretary of State for Foreign Affairs whether the Vienna Socialists are being released from prison as well as the Nazis; and, if he has no information, whether he will inquire on the ground that our attitude towards the crisis must take account of the Austrian Government's actions in this respect?

Sir J. Simon

The general amnesty for political offences was announced to be regardless of party, and, since this question was put down, our Minister at Vienna has sent information that under the amnesty Socialists are being released from prison.

Colonel Wedgwood

Is there any truth in the story in the Press that they are being released from prison and sent to a concentration camp, and, further, do the arrangements made for the release of Nazi prisoners apply to those who were Socialists?

Sir J. Simon

I cannot give more information than I have already given, but I can tell the right hon. Gentleman that inquiry was specially addressed to our Minister in Vienna on account of this question having been put down, and the right hon. Gentleman will no doubt find that my answer covers the point.

24. Mr. Bellenger

asked the Secretary of State for Foreign Affairs whether His Majesty's Government's declaration of policy relating to Austria's independence and integrity includes any objection by this country to an agreement between Austria and Germany for a Customs union?

Sir J. Simon

I am not aware that His Majesty's Government has made any specific declaration on this point.

Mr. Bellenger

Is the right hon. Gentleman aware that the ex-Foreign Secretary stated in this House only last week the policy of His Majesty's Government in regard to Austria, and will he therefore say whether that policy excludes a Customs union between the two countries?

Sir J. Simon

I do not think that I should be called upon to enlarge upon a statement which was made only last week.

Lieut.-Commander Fletcher

Could any effective communication be made to Austria?

26. Sir Percy Harris

asked the Secretary of State for Foreign Affairs whether recent developments in Austria will affect in any way the guaranteed loan to that country under the auspices of the League of Nations, to which Great Britain was a direct party, as shown by the agreement in Cmd. 4207; and whether he is aware that this loan of 1932 was made at the special request of the Austrian Federal Republic addressed to the Council of the League of Nations?

28. Mr. Thorne

asked the Secretary of State for Foreign Affairs what was the total amount of the loan guaranteed to Austria by the League of Nations; what was the Government's share of the loan; and what amount has been repaid?

30. Lieut.-Commander Fletcher

asked the Secretary of State for Foreign Affairs whether he will make a statement as to British participation in loans made during recent years to Austria; what amounts are involved; and whether the conditions upon which these loans were made will be impaired by the new Austro-German agreement?

32. Mr. Roland Robinson

asked the Secretary of State for Foreign Affairs whether the Government is paying attention to the new situation in Austria, having especial regard to the financial guarantees incurred by His Majesty's Government in connection with Austrian State obligations?

Sir J. Simon

The two guaranteed loans for Austria still outstanding are as follow:

The Austrian Government International Guaranteed Loan, 1933–53, of which the amount issued in London and guaranteed by His Majesty's Government was £4,514,200. Of this amount £3,824,500 is still outstanding; and the Austrian Government Guaranteed Conversion Loan, 1934–59, of which the amount issued in London was £10,163,900. Of this amount £10,082,200 is still outstanding. This loan was issued for the redemption of the original Austrian Government Guaranteed Loan of 1923, and His Majesty's Government's guarantee is for 24½ per cent. of each of the several tranches of the loan. The total amount of the guarantee at present rates of exchange is in the neighbourhood of £4,750,000. In addition there was an amount of £3,000,000 issued in London of the Austrian Government International Loan, 1930. This loan was not guaranteed, and the amount outstanding of the London issue is about £2,473,000. There is nothing, so far as His Majesty's Government are aware, in the recent Austro-German agreement to affect the liability arising under these loans in any way.

Sir P. Harris

Was not the House persuaded to agree to these loans in order to enable Austria to keep her complete independence?

Mr. Thorne

Does the right hon. Gentleman think, in view of Germany's gobbling up of Austria, that the Government are ever going to get their money back?

29. Mr. Thurtle

asked the Secretary of State for Foreign Affairs whether he has now any information to give the House regarding the attitude of Italy to the recent developments in Austria?

Sir J. Simon

His Majesty's Government have no information regarding the attitude of the Italian Government in this matter beyond what has appeared in the Italian Press.

Mr. Thurtle

Have any conversations or exchanges of opinion at all passed between this country and Italy regarding the Austrian situation; and, if not, why not?

Sir J. Simon

So far as I know, the recent conversations, to which I suppose the hon. Gentleman is referring, were concerned with Anglo-Italian relations.

Mr. A. V. Alexander

Was not Italy concerned, with ourselves and France, in the joint declaration of 1934; and, in view of that, has there been no approach at all from this country to ask for the opinion of Italy on this matter?

Sir J. Simon

I have answered the question on the Paper, and have informed the hon. Member what was the subject of the recent conversations. I cannot give any further information now.

31. Lieut.-Commander Fletcher

asked the Secretary of State for Foreign Affairs whether he has any information to give as to the initiative being taken by any State member of the League to bring the Austro-German agreement under notice by the League?

Sir J. Simon

No, Sir. His Majesty's Government have no such information.

Lieut.-Commander Fletcher

Is it the intention of the Government to take any such initiative, or to suggest any such initiative?

Sir J. Simon

The hon. and gallant Gentleman will recall, perhaps, that, in reply to an earlier question, I think No. 10, I stated that our information was that there was no treaty drawn up; and I apprehend, therefore, that this question does not arise.