Messersmith, G.S., Vienna. To William Phillips, Washington.
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University of Delaware Library, Museums and Press
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Refortification of Rhineland major factor in London Conference negotiations; refortification of Western frontier main objective of Nazi Party and German Army; regime can count on Army support only as long as regime can keep armament program going; scarcity of foreign exchange and credits forcing regime to find new money through new taxes and capital levy, which will not be popular with already impoverished masses; Hitler calls for another "election" to give him vote of confidence; emphasis in campaign speeches on personal appeal, rather than Party accomplishments; France ready to take stand on Rhineland question, but England hesitant; after determined attitude on League and Italy, present attitude inexplainable; only England's realization of what failure to keep her Locarno pledge would mean, brought the agreement yesterday, which for the present, saves the situation; details of Anglo-French agreement not yet known, but probably include terms which Germany can accept without loss of face; English press, including Times and Daily Telegraph, not reporting objectively; correspondents have trouble getting stories published accurately; explanation must be pressure exerted by business and financial interests; now that crisis is temporarily over, still planning to sail from Hamburg April 8 and should be in Washington about April 16.