VIENNA, July 11, 1936 (UP) - Austria and Germany buried the hatchet today after 10 years of bloodshed and warfare over Nazi attempts to dominate this country. Chancellor Kurt Schurschnigg and Reich Minister Franz Von Papen formally drafted a peace treaty which ultimately may remodel the European political map.
The treaty has not yet been signed but that was regarded as a mere formality as German Chancellor Adolf Hitler already has approved the terms of the pact.
It was understood that the treaty provides for:
--German recognition of Austria's complete independence.
--Non-interference by the Nazi government in Austria's internal affairs, including the possible restoration of the Hapsburg dynasty.
--Disavowal by Hitler of the national Socialist movement in Austria.
Der Fuehrer approved the pact last night in an extraordinary conference with Von Papen at his favorite villa at Berchtesgaden, Germany. Von Papen returned to Vienna early today and immediately entered consultation with Schuschnigg.
The meeting between Hitler and Von Papen was called at a moment when Schuschnigg had given up practically all hope of ever reaching an agreement with the Reich.
Schuschnigg was to announce the details of the pact in a nationwide broadcast today. German Propaganda Minister Josef Goebbels is expected to make a similar announcement in Berlin at the same time.
Austrian Nazi political prisoners will be released immediately after Hitler affixes his signature as the first effect of the pact, foreign observers believed.
The agreement was regarded as a tremendous contribution to European peace. It settles a problem which, with the exception of the Rhineland, was considered Europe's most potential war danger. It also smoothes the way for western European powers to settle their difficulties with Hitler.
Great interest attached to the Austro-German pact because of its probable bearing on Italo-German relations. Italy is the avowed protector of Austrian independence. The way, then, is paved for an Italo-German agreement. Thus Germany, Austria and Italy would be drawn together in a new and formidable European bloc.
Considerable speculation centered today on whether the Austro-German pact would mention Schuschnigg's desire to restore the Hapsburg monarchy to power in Austria.
