Allied-occupied Austria
On the 29th of March 1945, Soviet commander Fyodor Tolbukhin's troops crossed the former Austrian border at Klostermarienberg in Burgenland. This military entry marked the beginning of a four-power occupation that would last until 1955. The Allies divided Austria into four zones controlled by the United Kingdom, the Soviet Union, the United States, and France. Vienna itself was subdivided among all four powers, with its historical center declared an international zone where occupation forces rotated monthly.
The political landscape shifted rapidly as Soviet forces advanced. On the 3rd of April, Austrian politician Karl Renner established contact with the Soviets while living in southern Lower Austria. Joseph Stalin had initially planned to install a communist cabinet from exiles, but Tolbukhin's telegram changed his mind in favor of Renner. By the 20th of April 1945, the Soviets instructed Renner to form a provisional government without consulting Western allies. Seven days later, Renner's cabinet took office and declared Austria independent from Nazi Germany.
Western reactions were immediate and hostile. American President Harry Truman denied recognition to Renner, though he believed the politician was trustworthy rather than a Kremlin front. British authorities remained particularly suspicious of the new administration. Meanwhile, Soviet officers re-established district administrations and appointed local mayors even before fighting ceased. The Red Army lost 17,000 lives during the Battle of Vienna, yet their reputation suffered greatly due to subsequent actions.
Systematic sexual violence against women began within the first days after the Soviet victory, severely damaging the Red Army's reputation. Moscow issued an order on the 28th of September 1945 forbidding violent interrogations after repression against civilians became widespread. Throughout 1945 and 1946, all levels of Soviet command tried in vain to contain desertion and plunder by rank and file soldiers. Austrian police records for 1946 showed that men in Soviet uniform accounted for more than 90% of registered crime, compared to just 5 to 7 percent committed by U.S. soldiers.
Economic exploitation followed military occupation through the creation of USIA, a conglomerate of over 400 enterprises amalgamated on the 27th of June 1946. This organization controlled substantial or monopolistic shares in glass, steel, oil, and transportation industries despite representing no more than 5% of Austrian economic output. Products were primarily shipped to Eastern bloc countries while profits were de facto confiscated and taxes left unpaid by the Soviets. The Austrian government refused to recognize USIA legal title over its possessions, leading to retaliatory tax refusals from the conglomerate.
The Soviet zone eventually reunited with the rest of the country, but not before causing significant damage. Between February and June 1946, the Soviets expropriated hundreds of businesses left in their zone. They had no intention to reinvest their profits, so USIA assets gradually decayed and lost their competitive edge. Austrian communists advised Stalin to nationalize the whole economy, but he deemed the proposal too radical. The economy of the Soviet zone became an economy of exploitation in colonial style according to Austrian critics.
Austria received nearly $1 billion through the Marshall Plan, plus half a billion in humanitarian aid, making it the European nation that benefited most from American assistance. Heavy industry concentrated around Linz in the American zone and British-occupied Styria quickly recovered from 74.7% of pre-war output in 1948 to 150.7% in 1951. Administrators channeled available financial aid into heavy industry controlled by American and British forces because they could not afford to let Austria fall under exclusive Soviet influence.
Food remained the worst problem despite economic recovery efforts. From March 1946 to June 1947, 64% of daily rations were provided by UNRRA before shipments stopped. A severe winter of 1946, 1947 was followed by a disastrous summer when potato harvests barely reached 30% of pre-war output. In April 1947, the government failed to distribute any rations, leading to violent food riots on the 5th of May that shook Vienna. Demonstrators led by Communists called to curb westernization of Austrian politics.
The second stage of the Marshall Plan began in 1950, concentrating on productivity rather than immediate relief. The Economic Cooperation Administration distributed around $300 million in technical assistance until December 1951. This program attempted to steer Austrian social partnership toward productivity and growth instead of redistribution and consumption. American planners deliberately neglected consumer goods industries, construction trades, and small business, leaving almost half of the industrial workforce suffering from rising unemployment.
The election held on the 25th of November 1945 delivered a blow to the Communist Party of Austria which received just over 5% of the vote. A coalition of Christian Democrats and Social Democrats backed by 90% of votes assumed control over the cabinet. They offered Federal Chancellor position to Christian Democrat Julius Raab, but Soviets vetoed him because he had been a member of the austrofascist Fatherland Front during the 1930s. President Karl Renner appointed Leopold Figl instead, who was barely acceptable to Soviet authorities.
Soviet responses included massive and coordinated expropriation of Austrian economic assets. In less than a year they dismantled and shipped to Eastern bloc countries industrial equipment valued at around US$500 million. American High Commissioner Mark W. Clark vocally resisted Soviet expansionist intentions while his reports supported Truman's tough stance against the Soviets. The Cold War in Austria began in spring 1946, one year before the outbreak of global Cold War tensions.
On the 28th of June 1946, Allies signed the Second Control Agreement which loosened their dominance over Austrian government. Parliament was de facto relieved of Allied control since decisions could be overturned only by unanimous vote from all four powers. Over nine years the country gradually emancipated from foreign control, evolving from nation under tutelage to full independence. First allied talks on Austrian independence were held in January 1947 but deadlocked over German assets in Soviet possession.
The planned withdrawal of American food subsidies spelled sharp drop in real wages during fall 1950. Government and unions deadlocked in negotiations, giving Communists opportunity to organize 1950 Austrian general strikes that became gravest threat since 1947 food riots. Communists stormed and took over ÖGB offices while disrupting railroad traffic but failed to recruit sufficient public support. They had to admit defeat despite intense pressure from both Soviet and Western allies who did not dare actively intervene.
The strike intensified militarization of Western Austria with active input from France and CIA. By end of 1952 American Stockpile A amassed 227 thousand tons of materiel earmarked for Austrian armed forces. British quietly armed gendarmes known as B-Gendarmerie since 1945 and discussed creation of proper Austrian military in 1947. Americans secretly trained soldiers of underground Austrian military at rate of 200 men per week.
Korean War experience persuaded Washington that Austria might become Europe's Korea and sped up rearmament of secret ally. Serious secret training of B-Gendarmerie began in 1950 but soon stalled due to US defense budget cuts in 1951. Gendarmes were trained primarily as anti-coup police force yet also studied Soviet combat practice. They counted on cooperation with Yugoslavs in case of Soviet invasion.
Death of Joseph Stalin and Korean Armistice Agreement defused standoff, allowing country to rapidly demilitarize. Soviets relieved Austria of need to pay cost for reduced army of 40,000 men while British and French followed suit reducing their forces to token presence. Finally Soviets replaced military governor with civilian ambassador. Former border between Eastern and Western Austria became demarcation line.
Chancellor Julius Raab elected April 1953 removed pro-Western foreign minister Gruber and steered Austria toward neutral policy. He carefully probed Soviets about resuming talks on independence until February 1955 when it remained contingent on German problem solution. Soviet Union responded with counter-proposal for pan-European security system claiming it could speed reunification of Germany. Eisenhower expressed utter lack of confidence in reliability of Kremlin men during July 1954 letter to Winston Churchill.
Molotov publicly announced new Soviet initiative on the 8th of February 1955 putting forward three conditions: neutrality, no foreign military bases, and guarantees against Anschluss. Raab visited Moscow from 12, the 15th of April where breakthrough occurred. Moscow agreed Austria would be free no later than the 31st of December. Austrians agreed to pay for German assets and oil fields left by Soviets mostly in kind. Real prize was neutrality on Swiss model according to contemporary assessments.
On the 15th of May 1955 Antoine Pinay, Harold Macmillan, Molotov, John Foster Dulles, and Figl signed Austrian State Treaty in Vienna. It came into force on the 27th of July while last occupation troops left on the 25th of October that year. Next day parliament enacted Declaration of Neutrality whereby Austria would never join NATO or Warsaw Pact or allow foreign troops based within country. Soviets left large War Memorial plus symbolic cache of small arms, artillery, and T-34 tanks. Americans left far greater gift of Stockpile A assets.
West German Chancellor Konrad Adenauer publicly upset about outcome calling affair whole Austrian scandal. He threatened Austrians with sending Hitler's remains home to Austria despite British diplomat Geoffrey Wallinger reporting deal was far too good to be true. Western powers were stunned when Soviet initiative proceeded as agreed in Moscow. Only political spokesperson publicly upset was Adenauer who had called the affair a scandal threatening consequences.
Total war reparations taken by Soviet Union including withdrawn USIA profits, looted property and final settlement agreed 1955 estimated between $1.54 billion and $2.65 billion. Per capita aid amounted to $132 compared to $19 for Germans though Austria paid more war reparations per capita than any other Axis state or territory. The only remaining question involved how long neutrality could hold against future geopolitical pressures.
Continue Browsing
Common questions
When did Soviet troops cross the Austrian border during World War II?
Soviet commander Fyodor Tolbukhin's troops crossed the former Austrian border at Klostermarienberg in Burgenland on the 29th of March 1945. This military entry marked the beginning of a four-power occupation that would last until 1955.
Who established contact with the Soviets to form Austria's provisional government after World War II?
Austrian politician Karl Renner established contact with the Soviets while living in southern Lower Austria on the 3rd of April 1945. By the 20th of April 1945, the Soviets instructed Renner to form a provisional government without consulting Western allies.
What percentage of registered crime was committed by men in Soviet uniform in Austria during 1946?
Austrian police records for 1946 showed that men in Soviet uniform accounted for more than 90% of registered crime. This figure stands in stark contrast to just 5 to 7 percent committed by U.S. soldiers during the same period.
How much economic assistance did Austria receive through the Marshall Plan compared to other European nations?
Austria received nearly $1 billion through the Marshall Plan plus half a billion in humanitarian aid. This made it the European nation that benefited most from American assistance among all countries receiving such support.
When did the Allies sign the Austrian State Treaty and when did occupation troops finally leave?
Antoine Pinay, Harold Macmillan, Molotov, John Foster Dulles, and Figl signed the Austrian State Treaty in Vienna on the 15th of May 1955. The last occupation troops left on the 25th of October that year after the treaty came into force on the 27th of July.