Geist, Raymond H., Berlin. To G.S. Messersmith, Vienna.
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University of Delaware Library, Museums and Press
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German Government watching European situation as it is affected by Italo-Abyssinia dispute; government attitude neutral and press refrains from criticising Italian action, but general public's sympathies are with Abyssinia; Germany will not make military move at present but does not abandon claim to Memel; rearmament proceeds, but no rush evident; usual time taken for training of new recruits; estimated that by mid 1938 German forces will number approximately 2 1/2 million; Nazi Party still very much in power, and Hitler leans strongly to more radical element; great shortage of raw materials and good stuff; such foreign exchange Germany has or can get goes for raw materials for armament rather than food, and German people are exhorted to "tighten their belts"; persecution of Jews goes on unabated; some bankers prophesying financial collapse, but others feel confident [Hjalmar] Schacht's financial machinery will stand the strain for a long time.