Anschluss War: Austria versus Germany

Anschluss War: Austria versus Germany

What if on February 12th 1938 the Federal Chancellor of Austria, Kurt Schuschnigg meets with Adolf Hitler at the Berchtesgaden where Adolf Hitler demands that Chancellor, Kurt Schuschnigg signs an agreement which will see the transfer of power in Austria to the Austrian National Socialists, appointment of pro-Nazi ministers, hundred officers to be exchanged between the Austrian and the German armies and all imprisoned Nazis to be amnestied be reinstated.

After hearing this Chancellor, Kurt Schuschnigg refuses to sign the Berchtesgaden agreement as it is called and despite abusive and threatening from Adolf Hitler to sign the agreement he leaves informing him that Austria will remain a free country as long as he lives , two days later he is wounded in a failed assassination attempt which causes the Austria people to stand behind their chancellor while in the capitol of the Third Reich, Adolf Hitler decides that if Austria will not join under be pressure or treat then he will have the German army invade Austria instead.

So my question is how the Anschluss War look like and what will Great Britain and the French Republic responds be.
You need a surviving Dollfuss, Mussolini and 1935 for an Austrian-Nazi War.
 
Having to fight an outright war might throw a spanner into the works for Hitler's scheming--it'd be expensive and the Nazi economy was not known for its efficiency, plus there'd be casualties, damage to repair, etc.

Indeed, even a civil war with minor damage to things would hurt the Nazis, acquiring Austria gave the Germans a much-needed boost, in the same way that acquiring the Sudetenland and later all of Czechoslovakia would do the same for them. An Austrian Civil War is nothing but bad press and bad experiences for the Nazis (which is good for everyone), at worst, the Nazis will move in unopposed and put a stop to the war and come out looking bad. At best, someone will try and keep them out of Austria and prolong the civil war, shattering the myth of Nazi invincibility before it has a chance to begin.
 
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