Teutons Unite!

Two smart Teutons sprung a surprise last week on the rest of Europe. They were promptly accused of trying to break the Treaty of Versailles, the Treaty of St. Germain and that other "sacred bond," the Geneva Convention of 1922. "Ach, not so! No such thing!" protested both protagonists in the surprise: Dr. Julius Curtius, German Foreign Minister, and Dr. Johann Schober, Austrian Foreign Minister.

Absolutely all they had done, the two Teutons said, was to agree upon the terms of an "economic experiment." For a trial period of three years they proposed to sweep away all customs, tariffs or other trade barriers between Germany and Austria. They hoped that no other nation would object. Personally they could not imagine, they declared, how an economic experiment for only three years could be construed by anyone as an attempt to break those great political instruments, the Treaty of Versailles and the Treaty of St. Germain.

French Surprise, What France most dreads is Anschluss, a political union of Austria and Germany. Next to that she dreads the formation of an Austro-German Zollverein or "customs union," which was precisely what the two Teutons proposed last week. To bar the possibility of Anschluss or Zollverein, Frenchmen inserted in the Treaty of St. Germain, which beaten Austria signed in 1919, this clause (Part III, Article 88):

"The independence of Austria is inalienable otherwise than with the consent of the said Council of the League of Nations.* Consequently Austria undertakes in the absence of the consent of the said Council to abstain from any act which might directly or indirectly or by any means whatever compromise her independence, particularly, and until her admission to membership in the League of Nations,* by participation in the affairs of another power."

As a matter of course the French Government was officially surprised last week, the French press became furiously angry, and the Minister of France at Vienna called upon Dr. Schober to voice general disapproval and demand particulars. Czechoslovakia, an old satellite of France, and Italy, her brand new friend, sent their Ministers at Vienna to do the same. But the British Minister did not call on Dr. Schober.

Reason: Great Britain is at present negotiating bilateral customs agreements between herself and six European nations. Thus, in effect, Britain is doing sixfold what Germany and Austria want to do.

German Surprise, In Berlin approval and surprise were general at how thoroughly Dr. Curtius and Dr. Schober have worked out the details of their Zollverein. So far as trade is concerned the Austro-German frontier would be wiped from the map.

For example, Italian goods shipped into Austria, across Austria and on into Ger many would pay duty once (upon entering the Austro-German customs union) and no more, although crossing two political frontiers. Money collected by customs houses around the perimeter of the Zollverein would be pooled, then divided between the Austrian and German treasuries, under a proportional agreement. Since German customs receipts are already pledged under the Young Plan, the question of proportion is a nice one.

German goods would enter Austria duty free, and vice versa; but exceptions would be made to protect such government monopolies as matches. Finally what the two smart Teutons "really want" is this: Dr. Curtius wants Zollverein as a prelude to Anschluss, the fond political dream of Germans; and Dr. Schober wants to break an opening in the "Chinese Wall" of tariffs which surrounds Austria today, strangling her industries and national life.

Austrian Surprise. The announcement by Dr. Curtius in Berlin and by Dr. Schober in Vienna of their agreement last week probably surprised more than any one else Austria's boss-politician--beak-nosed Monsignor Ignaz Seipel, onetime Austrian Chancellor and leader of the Christian-Socialist (Catholic) party.

Monsignor Seipel opposes Anschluss be cause Germany is so thoroughly Protestant that in a United Austro-German state the Catholic Party would not hold that balance of power which it now holds in Austria. There is bad blood between Dr. Schober and Monsignor Seipel. It was not by accident that the Foreign Minister waited to spring his surprise until the Monsignor, ailing with pleurisy and dia betes, had gone to Switzerland.

In anger and in haste Boss Seipel rushed back to Vienna. Certainly if he recovers his health, if he exerts all his might to prevent the Zollverein he can do so--for a time. But the diplomacy of the two smart Teutons is for the long pull. By blowing up a trial balloon last week so tremendous that it overshadowed Europe, they turned the dream of Austro-German union into something concrete, something Austro-German public opinion can be educated to demand forcibly.

Also the two smart Teutons must have noted with pleasure that, angry though the French press grew, it did not advocate last week armed intervention to keep Germany and Austria apart.

*The Council acts only by unanimous agreement and France is a member of the Council.

*Austria was admitted in 1920.

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