Geist, Raymond H., Berlin. To [Jay Pierrepont] Moffat, Washington.

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University of Delaware Library, Museums and Press

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Copy to G.S. Messersmith. Hitler and Reichswehr now in agreement; Reichswehr naturally approves rearmament program; less interference in business now by Party radicals; Dr. [Hjalmar] Schacht, as economic dictator, able to deal with such interference; public works program continues; men under 25 removed from jobs and sent to work camps where they get military training; their jobs taken by older men; with the armament industries running steadily there is a surface prosperity, but all traceable to government action; Germany in for hard times, but citizens being prepared for it by subtle propaganda; with the build up of armaments and the indoctrination of youth to exalt everything military, by end of decade war will be almost inevitable; as long as Nazi regime is in power tensions in Europe will increase; unsafe at present to expect any diminution of powers of Hitler; Nazis professed more conservative policy has not materialized; just as much anti-Semitism and terrorism as ever.

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