The principles of the construction of the organization were: The organization is the bearer of the illegal fight and the trustee of the idea to create a secret organization, in a simple manner and without compromise, according to the principle of organizing an elite to be available to the illegal land-party council upon any emergency. Besides this, all political opportunities should be taken and all legal people and legal chances should be used without revealing any ties with the illegal organization. Therefore, co-operation between the illegal party organization and the legal political aides was anchored at the top of the party leadership. All connections with the party in Germany were kept secret in accordance with the orders of the Fuehrer. These said that the German state should officially be omitted from the creation of an Austrian NSDAP; and that auxiliary centers for propaganda, press, refugees, welfare, etc. should be established in the foreign countries bordering Austria.
Hinterleitner already contacted the lawyer Seyss-Inquart, who had connection with Dr. Wachter which originated from Seyss-Inquart's support of the July uprising. On the other side Seyss-Inquart had a good position in the legal field and especially well-established relations with Christian-Social politicians. Dr. Seyss-Inquart came from the ranks of the "Styrian Heimatschutz" and became a party member when the entire "Styrian Heimatschutz" was incorporated into the NSDAP. Another personality who had a good position in the legal field was Col. Glaise-Horstenau who had contacts with both sides. The agreement of 11 July 1936 was strongly influenced by the activities of these two persons. Papen mentioned Glaise-Horstenau to the Fuehrer as being a trusted person.
At that time the Fuehrer wished to see the leaders of the party in Austria in order to tell them his opinion on what Austrian National-Socialists should do. Meanwhile Hinterleiter was arrested, and Dr. Rainer became his successor and leader of the Austrian party. On 16 July 1936, Dr. Rainer and Globocnik visited the Fuehrer at the "Obersalzburg" where they received a clear explanation of the situation and the wishes of the Fuehrer. On 17 July 1936, all illegal Gauleiters met in Anif near Salzburg, where they received a complete report from Rainer on the statement of the Fuehrer and his political instructions for carrying out the fight. At the same conference the Gauleiters received organizational instructions from Globocnik and Hiedler.
Upon the proposal of Globocnik, the Fuehrer named Lt. Gen. [Gruppenfuehrer] Keppler as chief of the mixed commission which was appointed, in accordance with the state treaty of 11 July 1936, to supervise the correct execution of the agreement. At the same time Keppler was given full authority by the Fuehrer for the party in Austria. After Keppler was unsuccessful in his efforts to cooperate with Leopold, he worked together with Dr. Rainer, Globocnik, Reinthaller as leader of the peasants, Kaltenbrunner as leader of the SS, and Dr. Jury as deputy-leader of the Austrian party, as well as with Glaise-Horstenau and Seyss-Inquart.
Regarding internal conditions, it was clear that full recognition of the party leadership was given by Seyss-Inquart. He was also in permanent contact with Capt. Leopold, and there were never any serious conflicts between them. But he also acknowledged the correctness of Dr. Rainer's political interpretations, and the actual leadership of Dr. Rainer in all political actions. The situation was much the same with Glaise-Horstenau who was whole-heartedly for Rainer and Globocnik but always carefully guarded the legal party position of Leopold.
Due to the cooperation of the above-mentioned people with group leader Keppler and other officials of the Reich and due to the activities of other contact-men in Austria, it was possible to obtain the appointment of Seyss-Inquart as "Staatsrat" (councillor of state) in July 1937. Due to the same facts, the Chancellor Dr. Schuschnigg was forced to take a new so-called "satisfactory action". Through all this a new and stronger political position was won in the Austrian system. The National-Socialist Party became acceptable again in the political field and became a partner with whom one had to negotiate, even when it was not officially incorporated into internal Austrian political developments. This complicated political maneuver, accompanied by the steadily increasing pressure from the Reich, led to the talks between the Fuehrer and Schuschnigg at the Obersalzberg. Here Gruppenfuehrer Keppler presented the concrete political demands of the fighting underground movement, which he estimated according to his personal experiences and the information he received. The results of these talks were the right of a free acknowledgment of the National Socialist movement on the one hand and the recognition of an independent Austrian state on the other hand, as well as the appointment of Seyss-Inquart as Minister of Interior and Public Safety, as a person who will guarantee to both sides the proper carrying out of the agreements. In this way Seyss-Inquart occupied the key position and was in the center of all obvious political actions. A legal base in the government was won for the party. This resulted in a paralysis of the "system apparatus" (Schuschnigg government) at a time when a revolution needed to be carried out. Through this, the basis for a new attack on the Schuschnigg government was won.
Another result of the agreement was the appointment by the Fuehrer of Leopold as a member of the Staff of Hess. After a long, personal talk with Klausner, the Fuehrer appointed him as leader of the Austrian National Socialists, upon recommendation of Keppler. The relationship between Seyss-Inquart and Klausner was as follows: Seyss-Inquart acknowledged unconditionally the party leadership and actions taken by it; and he also acknowledged Klausner as the leader of the party. As a party member he was under the command of Klausner and received orders from him. But as a result of the agreement at Berchtesgaden and the statement the Fuehrer made to him during his state visit in Berlin, Seyss-Inquart was the personal trustee of the Fuehrer and directly responsible to him for the illegal NSDAP in Austria within the confines of his political sphere. Seyss-Inquart also acknowledged the free political initiative of the party leader of Austria.
The "Landesleitung" received word about the planned plebiscite through illegal information services, on 9 March 1938 at 10 a.m. At the session which was called immediately afterwards, Seyss-Inquart explained that he had known about this for only a few hours, but that he could not talk about it because he had given his word to keep silent on this subject. But during the talks he made us understand that the illegal information we received was based on truth, and that in view of the new situation, he had been cooperating with the "Landesleitung" from the very first moment. Klausner, Jury, Rainer, Globocnik and Seyss-Inquart were present at the first talks which were held at 10 a.m. There it was decided that first, the Fuehrer had to be informed immediately; secondly, the opportunity for the Fuehrer to intervene must be given to him by way of an official declaration made by Minister Seyss-Inquart to Schuschnigg; and thirdly, Seyss-Inquart must negotiate with the government until clear instructions and orders were received from the Fuehrer. Seyss-Inquart and Rainer together composed a letter to Schuschnigg, and only one copy of it was brought to the Fuehrer by Globocnik, who flew to him on the afternoon of 9 March 1938.
Negotiations with the government were not successful. Therefore they were stopped by Seyss-Inquart in accordance with the instructions he received from the Fuehrer. On the 10th March all preparations for future revolutionary actions had already been made, and the necessary orders given to all units leaders. During the night of the 10th to 11th, Globocnik returned from the Fuehrer with the announcement that the Fuehrer gave the party freedom of action and that he would back it in everything it did. Rainer then gave the final instruction for Friday, the 11th of March, and explained that three situations might develop within the following days:
1st Case: The plebiscite will not be held. In this case, a great demonstration must be held.