USSR resists calls from France, USA and UK for independent Austria. 1955 Soviet troops withdrawn. USSR recognizes Austria as a neutral sovereign state. Dr. Kurt Waldheim, former UN secretary-general, elected president, despite war crimes allegations. Franz Vranitzky replaces Sinowatz as Federal Chancellor.
Elections produce stalemate.
Vranitzky resigns and is replaced by Viktor Klima. Klestil reelected President.