Messersmith, G.S., Vienna. To William Phillips, Washington.
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University of Delaware Library, Museums and Press
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Fate of Austria will be determined outside her borders; Austria unable to maintain her own independence; Paris and Rome understand this and London is increasingly aware of situation; prominent members of Parliament and English Cabinet members visited Vienna recently; according to them an effort will be made to get Italy and France to compose their differences and settle the Italian-Yugoslav dispute, arranging things so as to satisfy Czechoslovakia and Little Entente; England might then join with them in definite guarantees which would serve notice on Germany that in case of aggression the three would act together; British Minister emphasized it was their problem, and all they expected from America was a sympathetic attitude; Ribbentrop went to London to try to get credits to purchase raw materials for Germany's armament program, but failed to do so; Hitler knows his government is doomed unless he can get credits; he will try to frighten England and U.S. with threat of using substitute materials and with the old threat of Communist take over if Nazi government isn't supported; Germany cannot develop and produce substitutes for cotton, wool, etc. as quickly as needed, for her best chemists have left or been driven from the country; believe there is little danger of Communist take over; National Socialism more radical and dangerous than anything seen in Russia; U.S. must have no illusions regarding future trade relations with Germany; she wants our raw materials now, but only until she can get them elsewhere; bad policy to give further credits to country which has already repudiated earlier debts; certain banks willing to lend to Germany, but risk other people's money while they collect their percentage; only hope for Europe lies in elimination of present German government; if Italy, France, and England maintain common front, and all, including U.S. refrain from giving moral or financial support, elimination will be hastened; whatever government succeeds present one in Germany, it will be so occupied in repairing damage that it will have neither time nor resources for aggression.