Messersmith, G.S., Berlin. To William Phillips, Washington.
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University of Delaware Library, Museums and Press
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Glad to know letters and dispatches have been helpful; [Raymond] Geist, right hand man at Consulate, a great help; growing realization among higher officials of German government that they cannot ignore opinions of outside world; isolation has already had bad economic effect; [Paul Joseph] Goebbels, in Hamburg speech in July, stated revolution just beginning; Hitler, on advice of business and financial leaders, called meeting of his representatives in each state and announced that revolution was ended and that counter-revolutionary or radical elements would be repressed without mercy; appointment of [Kurt] Schmitt as Minister of Commerce in place of [Alf] Hugenberg encouraging; Schmitt a first-class businessman who has not taken active part in Party matters; to satisfy radical wing of Party, Dr. [Gottfried] Feder appointed State Secretary in Commerce Ministry, but will be given little to do; Dr. [Wilhelm] Posse, old official of the Ministry and a fine man, retained as State Secretary also; the "Kampfbund des gewerblichen Mittelstandes", the organization causing so much trouble by interference with business, has been dissolved and its representatives in businesses and industries withdrawn, as have the Party-appointed or self-appointed Kommissars in business; newspapers announce great reduction in unemployment, but some government officials admit that figures published are incorrect; general economic situation bad; Hitler and associates not giving up radical ideas for moderation because they want to, but because circumstances force them to; tax receipts down; trade balance smaller each month; should exports shrink further, imports of raw materials will be difficult to finance, and standard of living will go down; no change in anti-Semitic campaign except there are not as many physical attacks on Jews; Hitler implacable on subject and would like to see Jews wiped out; Hitler also implacable on subject of Austria and Anschluss; if crisis in internal situation seems unavoidable, Chancellor may turn government into monarchy with Prince Louis Ferdinand as head.