Messersmith, G.S., Vienna. To William Phillips, Washington.

Prospects good for a peaceful anniversary of Feb. 12; some nervousness, but precautions have been taken; Germany using diplomatic channels to spread her propaganda; German diplomatic officers in capitals all over this part of world - and possibly in Washington - speak of weakness of Austrian government, its lack of popular support, dissension within government, and likelihood of change; rumors deliberately fabricated; informed by Foreign Minister that he and Chancellor will go to Paris on Feb. 20 and then to London; visits should have some good effects; Winter tourist season promises to be excellent; Prince of Wales arrived recently for several weeks' stay; Foreign Minister pessimistic concerning German attitude following London conversations; some German circles did not expect such far-going agreements in London; Austrian government convinced Germany has not given up her Austrian aspirations and that she has no intention of signing any pacts; Germany now playing for time, by asking questions, drawing out negotiations, trying to drive bargain; if foreign support for Austria falls away she will swing into Nazi camp, not from preference, but because she may think it wiser than waiting for Germany to come in and take the country; misjudged effect of Saar vote in Germany; thought Europe might have a breathing spell, but reports not encouraging; no doubt about what Hitler and Party want; they want Memel, Alsace-Lorraine, the Ukraine, and Austria; under other leadership Germany could be good neighbor, for Germans, though warlike have shown themselves docile under strong leadership; German attitude now similar Russia's before recognition by U.S.; Germany wants rearmament and recognition of equality without conditions, trying to give impression she will be reasonable afterward, but she will be no more reasonable than Russia has been; article by Lord Lothian [Philip Henry Kerr, 11th Marquis of Lothian] in Times of Feb. 1 shows fine spirit which might apply to another Germany, but not to Hitler Germany; Wickham Steed's reply in Feb. 2 Times shows that he knows and faces the facts; concerning London conversation, significant feature statement that after Germany has been communicated with and no agreement in sight, France and England will consult again; English facing what definite refusal by Germany would mean, and want to avoid mistakes made in 1914; England feels herself threatened now from the air more than she did in 1914 by growing German fleet; remembers conversation with Goering in June 1933; pointed out to Goering that England would be concerned over Germany's air power and Goering replied that they knew how to keep England quiet; recent revival of medieval play in which German pagan spirit is glorified and Christianity ridiculed as weakness; Party struggle in Germany for a coordinated church an expression of the feeling that Christianity with its morality and teachings is a restriction on a warlike people like the German; Professor [Joseph] Redlich called recently before leaving for Harvard and quoted other passages from German literature expressing same idea; Germany forced to abandon her economic and financial programs but her political and cultural programs are as firmly entrenched as ever; encouraged by attitude now taken by other Danubian states