Im Schatten des Nationalsozialismus

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In July 1936, the German-Austrian agreement lifted the Thousand Mark Ban, leading to significant economic improvement in Austria. However, the Axis Agreement between Berlin and Rome in October 1936 marked a shift in Mussolini’s stance, signaling the end of his commitment to Austria's independence. During a meeting in Venice in April 1937, Mussolini made it clear that a new system for the Danube-Basin states without Germany was not feasible. Following Schmidt’s visit to London that same year, Austria realized it could not expect guarantees for its sovereignty from Western powers. Meanwhile, on June 24, German Minister of Warfare Werner von Blomberg issued the “Instruction on consistent preparation of the Wehrmacht,” known as “Special case Otto,” which outlined plans for a German invasion if the Habsburg family were restored. Additionally, illegal National-Socialists began infiltrating government affairs through the Department for nation-policy of the Fatherland-Front, with their numbers swelling to 75,572 by early 1937. Undersecretary Schmidt's private visit to Hermann Göring at Carinhall further demonstrated the growing German influence in Austria, indicating that annexation was merely a matter of time.