Messersmith, G.S. Memorandum to Secretary [Cordell Hull], with copies to Undersecretary [Sumner Welles], [James Clement] Dunn, and [Jay Pierrepont] Moffat.

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University of Delaware Library, Museums and Press

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Comments on significance of changes in Germany; removal of [Hjalmar] Schacht from Reichsbank leaves radical Party leaders in complete control of financial and economic structure; recent action with respect to Army goes far toward placing Army under complete control of Party; traditionally Army has not mixed in politics, but has on occasion exerted restraining influence; Army was opposed to march into Ruhr, the annexation of Austria, and movement against Czechs, thinking it would mean immediate war; so far Army has been proved wrong, and higher officers retired; only those willing to be subservient to Party remain; Army has consistently opposed including S.S. and S.A. into Army except as individuals; Hitler and Party announced decision recently to incorporate S.S. and S.A. units directly into Army and into the legal reserves; old officers' organization to be made subordinate to head of general War Veterans Association; whether steps taken are preparation for aggressive action remains to be seen.

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