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At the height of the first Cold War in the early 1950s, the western
powers worried that occupied Austria might become "Europe's Korea"
and feared a Communist takeover. The Soviets exploited their
occupation zone for maximum reparations. American economic aid
guaranteed Austria's survival and economic reconstruction. Their
military assistance turned Austria into a "secret ally" of the
West. Austrian diplomacy played a vital role in securing the
Austrian treaty in bilateral negotiations with Stalin's successors
in the Kremlin, demonstrating the leverage of the weak in the Cold
War.
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