Messersmith, G.S., Berlin. To William Phillips, Washington.
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University of Delaware Library, Museums and Press
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People here over-eager to send mission to U.S. to negotiate trade agreement; they need raw materials and expect U.S. to play Santa Claus, but have little to offer in return; wish to make fine bargain which will bolster falling prestige of regime; U.S. can make no worthwhile agreement with present government; build up of armaments continues; plan to build 1200 planes before end of year; importing many aircraft parts from U.S.; Air Ministry purchased three Boeing planes from United Aircraft; dissension between General [Werner] von Fritsche, head of Reichswehr, and [Ernst] Roehm, head of S.A.; Roehm insisting companies of S.A. as now constituted be taken bodily into Reichswehr; von Fritsche disagrees; if Roehm gets his way, Reichswehr will disintegrate and military force of Germany become merely an S.A. organization.