Messersmith, G.S., Berlin. To William Phillips, Washington.
Date
1934-04-13
Journal Title
Journal ISSN
Volume Title
Publisher
University of Delaware Library, Museums and Press
Abstract
Description
Top Nazi leaders unable to control secondary leaders who are as radical as ever; leaders fear collapse inevitable without outside help and look to U.S.; hearing [Hjalmar] Schacht's proposal, copy of which was sent to Department by [John Campbell] White, all must agree U.S. has nothing to gain but much to lose through any trade agreement with Germany at present; unfavorable export balances emphasize failure of new regime's program; report on German budget being prepared by [Douglas Phillips] Miller, acting Commercial Attaché, and will be forwarded to Department; increased dissension in Party, resistance to church program, high cost of living, and reduced income are factors disturbing to government; Schacht understands desperate situation better than others; he is arrogant, proud, and self-confident, and inclined to underestimate capacities of foreign bankers and business men, but he is a clever banker; has been informed that Schacht placed before Hitler a five page memorandum listing five fundamental changes which must be made if disaster is to be averted; could learn only the two first; (1) anti-Semitic policy of Party and Government must be radically altered; (2) foreign interests in Germany must be given adequate protection; in speech before American Chamber of Commerce in Berlin, Schacht said that Germany's debts to U.S. were political and must be wiped off the slate; Nazis all alike in cynical disregard of contracts or of other countries and non-Germans; Germany sees only two ways out of dilemma - negotiation of favorable trade agreements with major suppliers of raw materials and getting credit; believes no agreement made with present German government would be to U.S. advantage; Schacht naive if he expects credit from U.S. for the purpose of propping regime which is discriminating against American imports and other interests in Germany and a regime which is destroying its capacity to repay; will send copy of Miller memorandum preparatory to expected arrival of [Richard Washburn] Child.
Keywords
Messersmith, George S. (George Strausser), 1883-1960.