862.00/2645a

The Chief of the Division of Western European Affairs (Boal) to the Ambassador in Germany (Sackett)

Dear Mr. Ambassador: I am enclosing for your information a copy of a memorandum which sets up a few observations with regard to the present course of events in Germany. These observations while based for the most part on newspaper reports seem to us in the Department to be fairly accurate. We have not had any reports from the Embassy which have covered this question in just the same way as this memorandum approaches it. For our own information here in the Department, I would appreciate it if you could give me your views with regard to this memorandum with any amplification or added information which you might deem pertinent.

Sincerely yours,

Pierre de L. Boal
[Enclosure]

Memorandum Prepared in the Department of State

The following are certain brief observations regarding events in Germany:

(1)
Hitler’s position, both on the basis of votes cast and psychologically, is unquestionably obtaining increased strength and there is a general expectation that his groups will attain power soon, either as part of the present Government or in charge of the Government. Certain characteristics of the Hitler program are becoming increasingly evident:
(a)
The extent to which his program and ideas seem to resemble those of Fascist Italy. As a matter of fact, the Bruening decrees are already creating a relationship between government and industry that approaches the Italian scheme and the step over to the Hitler program would not be very great. The chief difference might turn out to be that the trade unions, instead of retaining their international socialist [Page 277] character, would take on a national Fascist complexion and be under the control of the central Government.
(b)
Hitler seems to be making a very strong play for the favor of international private banking groups by promising complete respect for their debts and a curb upon future German borrowings. This is calculated in the first place to reassure them, and in the second place to rally them against France.
(c)
For the rest, his patriotic utterances in general resemble those of Mussolini a very few years ago—national war cries without any defined objective.
(2)
The reaction of the French and the French Government to all this is not yet clear.