After the annexation of Austria to the German Reich, on March 13, 1938, Harmel moved with his unit to Klagenfurt, capital of Carinthia.
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With SS-Infanterie-Division (mot.) "Reich" (Later known as 2. SS-Panzer-Division "Das Reich"), under the command of the SS-Gruppenführer Paul Hausser, Harmel took part in fights near Jelna.
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On April 20, 1943, Harmel was promoted to the rank of SS-Standartenführer.
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