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her way clear to permit the transit of Soviet forces through Poland
under any circumstances nor would she permit the establishment of
Soviet air bases on Polish territory, in spite of the considerable
credit obtained from France for rearmament.
 
 
The independent attitude of Poland thus indicated has been subtly
encouraged by Germany, realizing full well Poland's national pride and
her inherent hatred of the Russians.  The gain to Germany has been
indirect only, as there are no indications of increasing friendship
between the two countries.     
 
 
2(c).  So much for the specific ramifications of the Franco-Soviet Pact
itself.  Independent of this development, certain other countries and
situations have reacted definitely to Nazi anti-Bolshevic policy.
 
In respect to ultimate alignment with German, it may be said that
Austria's position is even stronger than that of Czeohoslova's.  The
fiasco of Nazi aspirations in Austria, at the time when Dollfuss met
his death and Italy established "the watch on the Brenner", has
meanwhile been wiped out and Austria is now officially designated as a
"German" nation.
The agreement of July 11th and the subsequent visit of Secretary of
State Schmidt to Berlin* led not only to close economic and cultural
relations but it is confidently
 
 
 
*See Embassy's despatch No. 3163 of November 25, 1936.