Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-12
BY DIR. JOHANN SCHOBER,
Foreign. Minister and Vice Chancellor
Austria.

Foreign. Minister and Vice Chancellor Of
| Austria.
VIENNA, May IL (NAN.A0:-
Austria's provisional agreement with
Germany for the purpose OF equaliz1ng
and harmonizing the customs and eco
nomic policies of these countries had
its origin in the pressure OF the general
business crisis, from which Austria In
particular is suffering.
Through the peace treaties the num-
| Der of Europes states was increased 10
~ and Europe cut to pieces with re-
spect to customs and business in gen.
eral. Austria, poor in natural re-
sources, was reduced to territory in
habited by 6,500,000 people. Her pro.
duction, formerly serving market Of
| 1000, 900, had to turn for the greater
part to export markets because the
purchasing power ut home had been
| considerably reduced by currency de-
probation and consequent loss OF cap
ital.
simultaneously with this weakening
Of the home market, Austria found
herself surrounded by high tariff walls,
| especially those erected by states which
| formerly belonged in whole or in part
to the old Austro- Hungarian monarchy
| and which were then the natural mar
kets for the products of that territory
which constitutes the present Austria.
League Assured Help.
The situation thus created became
so untenable that in 1922 the League
of Nations felt duty-bound to inter-
vene; and in the Geneva protocol OF
that year assured Austria of its help in
the reconstruction OF her economic life
and In the rehabilitation Of her
finances.
With the help Of the League OF
Nations loan, the financial rehabilita-
ton was accomplished, and by 1925 the
budget was balanced, although such q
step neceSSitated an extremely oppres-
sive taxation which, in turn, constituted
heavy burden on Austrian products
despite the fact that Austria's economic
situation had not only not improved.
but had become much worse.
Faced with this situation, the
Austrian government in 1928 made
representations to the League of Ma
tons urging that Austria should be en-
abled to conclude preferential-tarif
treaties with neighboring states, for the
purpose Of increasing her exports.
This proposition met with no funda-
mental opposition, but at that time the
League was not IN position to induce
even one Of Austria's neighbors to come
to her help by concluding q preferential
bAAAn sGtdty WIN ueI.-,
League Fails to Make Good.
Nor was the League able to make
good her promise, given in the 1922
Geneva protocol, to help Austria in the
reconstruction Of her economic life.
Instead, the League confined itself to
recommendation to all. European states
that they should meet Austria at least
halfway in the matter of tariffs and
related questions so that she might in
crease her exports.
This appeal also was without result
and Austria Was without help of any
kind.
Taxes, which were depressing the
| country so heavily, could in no wise
be reduced: and production, therefore,
| had to be more and more restricted.
Unemployment increased and despite
every effort Of both industry and agri-
culture Austria's, balance of trade re-
manned unfavorable. -.
A turn for the better seemed likely
when, as a result of the extension Of
the trade depression to Southeastern
Europe, o movement began in favor of
general commercial and economic CO.
operation.
The disorganization Of Europe after
the war had by now been recognized