Cold War Division of Austria? Plausibility and Effects

Is a division of Austria into a capitalist West-Austria and a communist East-Austria similar to East and West Germany possible and plausible?
What would be the effect of such a division?

Are both East and West Austria large enough to survive as independent states? How would their economic development change?
How would economic and political relationships between West-Austria and Germany, Switzerland and Italy develop?
How would be the economic and political relationship between East-Austria and the Soviet Union, and its communist neighbors?

How would such a division change the development of the Cold War? Would this lead to a more confrontational cold war?


ATL Division of Austria according to the 1945 occupation zones in the VT-BAM format:

dividedaustria.png
 
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I've always personally thought it was far more likely for the Austrian zones, in the event of permanent division, to be united with the German occupation zones and from then on into West and East Germany.
 
I've always personally thought it was far more likely for the Austrian zones, in the event of permanent division, to be united with the German occupation zones and from then on into West and East Germany.

That's one reason I have always thought it was unlikely for the Soviets to insist on the division of Austria. There would be a continuous band of NATO territory from West Germany to Italy. (This would be true even if in the end the West decided to create a n independent West Austria instead of uniting it with the FRG--West Austria would almost certainly join NATO as well.) If anything, the surprise is that the agreement for a neutral and independent Austria took so long to work out--probably because the Soviets were using Austria as leverage on the German question. To quote an old post of mine:

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The Soviets had never really tried to sovietize their occupation zone in Austria (although they certainly milked it economically [1]) as they did in Germany, and a freely elected all-Austrian government existed from 1945.

Given those facts, what stood in the way for so long of the obvious solution of a treaty guaranteeing a free and neutral Austria with all foreign troops withdrawn? Mainly, it was that the Soviets tried to use the Austrian issue to gain leverage on the larger issue of Germany. Once it became clear that this strategy was not working, that the Western Allies were determined to re-arm West Germany and admit it to NATO, the Soviets agreed to the Austrian State Treaty in 1955 (although Molotov opposed the idea to the end). After all, it was hardly in the Soviets' interest for western troops to be able to use western Austria as a link between NATO Italy and NATO West Germany. Moreover, the treaty might encourage neutralist sentiment in West Germany.

The treaty, incidentally, was also a good deal for the Soviets economically: "While the United Kingdom, the United States, and France relinquished to Austria all property rights and interests held or claimed by or on behalf of any of them in Austria as former German assets or war booty, the USSR, in addition to $1,250,000,000, which it took from the country during its ten years' occupation, obtained tangible additional payment for the restoration of Austrian freedom. This included $150,000,000 for the confiscated former 'German' enterprises which Austria had to buy back from the Administration of Soviet Property in Austria (Upravlenye Sovetskogo Imushchestva v Avstrii or USIA); $20,000,000 allegedly advanced to these enterprises by the USIA; $2,000,000 for the confiscated 'German' assets of the Danube Steam Shipping company, and 10,000,000 metric tons of crude oil as the price of Austrian oil fields and refineries which had been Soviet war booty." Encyclopedia Britannica (1957 edition), "Austria," p. 749. (The same article states that the division of Austria, including Vienna, into occupation zones, had "worked without difficulty.")

[1] Under the Potsdam agreement, Austria did not have to pay reparations, but the four Allied powers were granted a title to German external assets, which covered property in many cases forcibly acquired by the Germans in Austria. The Western Allies decided in 1946 to transfer the German assets in their zones to the trusteeship of the Austrian government; and in 1949 they agreed to relinquish their claims to the property altogether. The Soviets, by contrast, insisted on their claims.

https://www.alternatehistory.com/forum/threads/wi-austrian-democratic-republic.398529/#post-13156215
 
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Most of the population and industry is in the Eastern zone, leaving nothing but farms and forests in the Western zone, which most likely ends up rolled into West Germany.

Brown: Old metal industry
Blue: Old textile industry
Orange: New industry, post war developments etc.
VYfXsv6mpx3jIviNKfimNsi6CA5280z6vGjfz9Z_kjm1zKVuvpGQZ8oBGG4Rgv1Tbh4yiHHSbeNVL4x5_9V0clYybrCXB3_IdN9BZtbPPT5V5NCPX_R7eYSbDUUri7EafZuUKMNmHw


The red band in Styria is at the time of course a hotbed of communist activity.
 
Most of the population and industry is in the Eastern zone, leaving nothing but farms and forests in the Western zone, which most likely ends up rolled into West Germany.

Brown: Old metal industry
Blue: Old textile industry
Orange: New industry, post war developments etc.
VYfXsv6mpx3jIviNKfimNsi6CA5280z6vGjfz9Z_kjm1zKVuvpGQZ8oBGG4Rgv1Tbh4yiHHSbeNVL4x5_9V0clYybrCXB3_IdN9BZtbPPT5V5NCPX_R7eYSbDUUri7EafZuUKMNmHw


The red band in Styria is at the time of course a hotbed of communist activity.

Thank you, but I can't see your map

That's one reason I have always thought it was unlikely for the Soviets to insist on the division of Austria. There would be a continuous band of NATO territory from West Germany to Italy. (This would be true even if in the end the West decided to create a n independent West Austria instead of uniting it with the FRG--West Austria would almost certainly join NATO as well.) If anything, the surprise is that the agreement for a neutral and independent Austria took so long to work out--probably because the Soviets were using Austria as leverage on the German question. To quote an old post of mine:

Thank you!
So for such a division of Austria to happen, we need a breakdown of negotiations between the Soviets and the Western Allies. Basically some incident or crisis which make negotiations impossible. According to your post, a neutral Austria is in the medium and long term interest of all major powers. The only way, to make such a division permanent is to prevent negotiations long enough (over several years), that both the Western Allies and the Soviet Union establish independent institutions in their zones.
 
I've always personally thought it was far more likely for the Austrian zones, in the event of permanent division, to be united with the German occupation zones and from then on into West and East Germany.


I've heard this idea quite some times now, and I eventually have to say something about that: HELL NO.

That would never happen. After WW2, the idea of Austria beeing part of Germany was so completely and throughoutly discredited, that no austrian nation, socialist or capitalist, would ever willingly become part of Germany again.

Allready on April 27th 1945, representatives of all three major austrian parties (SPÖ, ÖVP, KPÖ) signed the "Proclamation on the Sovereignty of Austria". The Anschluss was decleared null and void, and the "Republic of Austria" was proclaimed. On the same day a provisional austrian government, headed by Karl Renner, was formed.

Furthermore, the Allies of the Anti-Hitler Coalition would never, ever allow Austria to become part of Germany again. Just look at the declaration of the 1943 Moscow Conference:

"The governments of the United Kingdom, the Soviet Union and the United States of America are agreed that Austria, the first free country to fall a victim to Hitlerite aggression, shall be liberated from German domination.

They regard the annexation imposed upon Austria by Germany on March 15, 1938, as null and void. They consider themselves as in no way bound by any changes effected in Austria since that date. They declare that they wish to see re-established a free and independent Austria and thereby to open the way for the Austrian people themselves, as well as those neighbouring states which will be faced with similar problems, to find that political and economic security which is the only basis for lasting peace.

Austria is reminded, however that she has a responsibility, which she cannot evade, for participation in the war on the side of Hitlerite Germany, and that in the final settlement account will inevitably be taken of her own contribution to her liberation."

When the occupation of Austria eventually ended in 1955, the Austrian State Treaty explicitly stipulated that Austria was forbidden to ever become part of Germany again.

It's an interesting idea, don't get me wrong, but it definetly belongs to the ASB "All citizens of Austria, and all members of the Soviet, American, British and French governments, suddenly have a brain damage" section. East Germany didn't even border Austria.


Personally, I don't even think that a division of Austria would have been possible/realistic. The existence of an East Austrian state, though the idea is undoubtedly fascinating, is just not plausible. Why? Well, let's compare East Austria to East Germany:

In the 1946 East German State Legislature Elections (which were free, equal and secret), the SED won 47.5% of the votes. The CDU (that also advocated for land reforms, nationalizations and a somewhat planed economy) won 24.5%.

In the 1945 Austrian Legislative Elections, the KPÖ won 5.4% of the votes. Those who SPÖ members who favoured united front or even unification with the communists were a miniority.

You see, that's hardly the same.

P.S. I just realized today is the 75th anniversary of the affore mentioned declaration of independence. So, happy birthday Austria :).
 
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