Memorandum on German situation.

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University of Delaware Library, Museums and Press

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Enclosed with No. 1266. Army now solidly behind Hitler; any movement against him will come from civil leaders; rumored that relations between Hitler and Goering strained; great labor shortage due to expanded armaments program as serious as shortage of raw materials; Government obliged to manipulate economy; public finances strained; prices controlled but quality of consumer goods deteriorates, and all goods scarce; Reich not likely to collapse because of economic difficulties as under dictatorship citizens forced to accept unlimited hardships.

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