Avoiding Austria The Dutch Queen has also stopped taking her annual winter ski vacation at the Austrian resort of Lech for the duration of President Waldheim's six-year mandate.

No one has so far proved that President Waldheim did anything dishonorable, but the superpower America thinks it can deal with little and neutral Austria as it likes.

Here are excerpts: I need not repeat to this committee the circumstances which unfortunately compelled the American Government to place President Waldheim on the so-called Watchlist.

Some people have criticized the papal meeting with President Waldheim, who served in World War II with a German Army unit that has been implicated in the deportation of Jews to death camps.

The Pope agreed to meet with President Waldheim only after Mr. Waldheim had repeatedly pressed his request, senior Vatican officials said today.

President Waldheim is a "sly, low-brow peasant, " Chancellor Franz Vranitzky "can't even bring a sentence to a correct end."

Until last week, the only European head of state to have seen President Waldheim in Austria was President George Vassiliou of Cyprus.

"It has become obvious that President Waldheim cannot effect the most important aims which he set himself, namely to serve inner peace in Austria and to increase Austria's reputation in the world," he said.

Chancellor Vranitzky hinted that he would resign if the furor raging around President Waldheim's World War II military record continued to prevent the Government from dealing with other problems.