DR. STEINBAUER: I have no further questions to put to this witness.

DR. KUBUSCHOK: According to a statement by the American Ambassador in Vienna at that time, Mr. Messersmith, Herr Von Papen, at the beginning of his activity in Vienna, is said to have stated that his real task in Vienna was the economic and political incorporation of southeast Europe into Germany, and that southeast Europe was the natural hinterland of Germany.

Did you, Witness, ever hear of such a statement?

SCHMIDT: No. In view of the close contact which I had already with Mr. Messersmith before my appointment as a member of the Government, and especially later, I would probably have heard of it. I assume, however, that no special significance was attached to this question at the time, because in first visits between diplomats, as a rule, a tour d’horizon is usually made and questions are discussed which interest both countries, that is, general political questions. Nor did I observe later that a southeast Europe policy was being carried on from the German Legation.

DR. KUBUSCHOK: According to Mr. Messersmith, Herr Von Papen is supposed to have said at that time that he was working to weaken and undermine the Austrian Government.

Did the witness Messersmith report such a statement by Herr Von Papen to you?

SCHMIDT: No.

DR. KUBUSCHOK: Did the Austrian Government consider it advisable and necessary to normalize relations with the Reich by an agreement in July 1936?

SCHMIDT: Yes. I have already explained the reasons for conducting a realistic policy which were of an economic nature and based on foreign policy.

DR. KUBUSCHOK: In these and in later negotiations, did the international political situation, particularly the settlement of the Party question, also have a part in deciding this?