HISTORY
The
Austrian Empire played a decisive role in Central European history.
It occupied a strategic position astride the southeastern approaches
to Western Europe and the north-south routes between Germany and
Italy. Although present-day Austria is only a tiny remnant of
the old empire, it still occupies this strategic position.
Soon after the Republic of Austria was established at the end
of World War I, it not only had to redesign a government meant
to rule a great empire into one that would govern only 6 million
citizens but also faced catastrophic inflation. In the early 1930s,
worldwide depression and unemployment added to these strains and
shattered traditional Austrian society. These economic and political
conditions led in 1933 to a dictatorship under Engelbert Dollfuss.
In February 1934, civil war broke out, and the Social Democratic
Party was suppressed. In July, the National Socialists attempted
unsuccessfully to seize power and assassinated Dollfuss. In March
1938, Austria was incorporated into the German Reich through the
Anschluss.
At the Moscow conference in 1943, the Allies declared their intention
to liberate Austria and reconstitute it as a free and independent
state. In April 1945, both East and West forces liberated the
country.
Subsequently,
Austria was divided into zones of occupation similar to Germany's.
A Socialist elder statesman, Dr. Karl Renner, successfully organized
an Austrian administration.
General elections were held in November 1945, and the conservative
People's Party obtained 50% of the vote and 85 seats in the National
Council (lower house of the parliament). The Socialists won 45%
and 76 seats, and the Communists won 5% and 4 seats. The ensuing
three-party government held office until 1947, when the Communists
left the government. During that year, the People's Party and
the Socialists formed a coalition that governed until 1966.
Under the 1945 Potsdam agreements, the Soviets took control of
German assets in their zone of occupation. These included manufacturing
plants, constituting 7% of all Austrian industry; oil resources,
which accounted for 95% of the nation's oil production; and refineries,
which accounted for about 80% of Austria's refinery capacity.
These properties were returned to Austria under the Austrian State
Treaty, signed at Vienna on May 15, 1955. The treaty came into
effect on July 27 of that year.
Under its provisions, all occupation forces were withdrawn by
October 25, 1955. Austria became free and independent for the
first time since 1938.
