January 1935 424,000 unemployed in Austria. 2 October 1935 East African kingdom of Abyssinia attacked by Fascist Italy. Finally conquered and annexed in May 1936. In the aftermath, Germany and Italy draw closer together in their foreign policy goals. 11 July 1936 Austro-German treaty of understanding (»Juliabkommen«) defines Austria as »second German state.« Germany recognizes the sovereignty of the Austrian state. Austria agrees to pass an amnesty for charged and sentenced Nazis and to include representatives of the "national" opposition close to the Nazis in the new cabinet. 22 August 1936 Amnesty on the basis of the above treaty, many Nazis released from prison. 24 August 1936 German Reich passes a law on tourist traffic with Austria, 1000-Mark fee abolished. Autumn 1936 The first of roughly 1400 Austrians, mainly Socialists and Communists, start to arrive in Spain to fight in the International Brigades on the side of the Republic against the forces of Fascism. 4 February 1937 Founding of a seven-man committee of prominent Nazis to enable closer co-operation with the government. 17 June 1937 Establishment of the Volkspolitisches Referat, a department within the Vater-ländische Front to bring the Nazis closer to the Schuschnigg regime. Seyß-Inquart plays the role of peace-making intermediary. 24 June 1937 German directive for the war preparedness of the Wehrmacht. A special section deals with the invasion of Austria (»Operation Otto«). 5 November 1937 Hossbach memorandum: Hitler reveals his next foreign policy goals to army leaders: the annexation of Austria and Czechoslovakia.
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