862.00/2847
The Ambassador in Germany (Sackett) to the Secretary of State
[Received September 30.]
Sir: In connection with despatch No. 1928 of September 19, 1932,38 going forward in this pouch, I have the honor to report further on the recent domestic political situation in Germany.
As pointed out in the fortnightly review of the domestic political situation (see section 2 of despatch No. 1912 of September 12, 1932),38 there was little doubt even before the Reichstag convened last week [Page 314] that it was doomed to an early death. The general belief at the time was that it would be dissolved after the political debate which usually follows the reading of the Government’s program. However, as reported in my telegram No. 177 of September 12, 1932,40 the Reichstag was dissolved sooner than was generally expected. For a proper estimate of the developments in connection with the dissolution of the Reichstag, it may be appropriate here to review briefly the events which led up to the present unusual situation.
It will be recalled that, despite Nazi assertions to the contrary, Brüning’s downfall and the speedy formation of the Papen Cabinet this summer were preceded by a secret arrangement between Von Papen and Hitler looking to the latter’s participation in the Cabinets of the Reich and Prussia following the Reichstag election of July 31. Dissolution of the Reichstag, the lifting of the ban on Hitler’s Brown Army and the ousting of the Prussian Ministers were in substance the price which Von Papen agreed to pay for Nazi support. The Reich Government promptly fulfilled its part of the bargain but Hitler, encouraged by his success in the election, and apparently under pressure of subordinate Nazi leaders, failed to carry out his part. Although he was offered the Vice-Chancellorship and the post of Prussian Minister-President he demanded for himself not only the Chancellorship but also the “powers of Mussolini”.
Since President von Hindenburg’s refusal to turn the Government over to the Nazis the latter have been assailing the Papen Cabinet, which had been so generous in making concessions to them, no less violently than the hated Brüning Cabinet, and even the highly-respected Chief of State has become the target of abusive Nazi attacks. In order to defeat Von Papen by parliamentary means the Nazis entered into coalition negotiations with the Center, Brüning’s own party. As a result of these negotiations the tension between the Hitlerites and the Reich Cabinet became increasingly acute. This, in short, was the situation when the newly-elected Reichstag met on Monday, September 12.
As a result of the renewed elimination of the Reichstag and the ousting of the Prussian Ministers, Germany is now being governed virtually by a military directorate which derives its strength principally from the fact that it enjoys the support and confidence of the President and controls the Reichswehr and the police of a State comprising two-thirds of the Reich.
In consequence, we have the amazing paradox of the Nazis, heretofore ardent advocates of a dictatorship and sworn enemies of the [Page 315] parliamentary system, now posing as the champions of Parliament. This attitude of the Nazis was strikingly reflected in one of Herr Goering’s letters to President von Hindenburg in connection with the dissolution of the Reichstag. In this letter the Nazi President of the Reichstag upheld the constitutional rights of Parliament in a manner that must have caused great astonishment and displeasure in Nazi ranks. He not only ardently defended the “sovereignty of the people” and the principle embodied in the Weimar Constitution, that “the power emanates from the people”, but even went so far as to defend the political parties, which Chancellor Von Papen is wont to treat with contemptuous disdain, as a necessary medium for the expression of the will of the people.
Goering is one of Hitler’s most trusted lieutenants and political advisers. His attitude is therefore highly significant. It doubtless goes to show that so long as the Nazis had hopes of instituting a dictatorial regime of their own they condemned the Weimar Constitution, the parliamentary system of government, and the political parties in particular, as an evil that must be rooted out. With more than one-third of the Reichstag under Nazi control and the presidency of that body in the hands of a Nazi they apparently no longer look upon Parliament as the source of all evil but on the contrary as an important weapon against a government to which they have become hostile.
The Reichstag election in November makes the fifth important election in Germany this year. The absurdity of a new election which holds out little promise of improvement in the political situation is generally recognized. The people are tired of going constantly to the polls and the coffers of the political parties are depleted. This is believed to apply in large degree to the Nazis who have lost the support of some of their most important financial backers.
The reasons for this are not far to seek. The Papen Cabinet which the Nazis regarded as a transition to Hitler’s Third Reich has proved stronger than many at first believed. Industrialists who hoped that Hitler’s movement would help to break the influence of the trade unions and reduce the onerous burdens of social legislation enacted since the war have reason to be pleased with the present conservative regime in Germany. The energy with which the Cabinet proceeded to carry out its political and particularly its economic program, measures such as the reduction of the benefits of unemployment insurance, remission of taxes on a large scale and subsidies to business and industry as a means of stimulating economy, have served to win for the Government the active support of many who up to now helped to finance Hitler.
[Page 316]The chauvinistic character of the Papen-Schleicher regime, which the Nazis complain has stolen their thunder, may enable the Hugenberg Nationalists, the only party openly supporting the Cabinet to regain some of their following which flocked to Hitler in the past. To compensate possible losses to Hugenberg the Nazis are even now—as pointed out in despatch No. 1912 of September 12, 193241—beginning to stress the socialistic part of their program. For this reason also they can not expect the same measure of financial support from business and industry as in the past.
Finally a third reason for the loss of financial support in business and industrial circles is doubtless the fact that these circles have no desire for frequent and intense elections which, it is widely feared, may retard the salutary effect of the Government’s economic reconstruction program.
The principal political parties—Nazis, Center and Social Democrats—will conduct the coming campaign with more or less identical slogans against the “social reactionary course” of the Papen Cabinet. Because of their coalition negotiations during the past weeks, the Nazis and Center will be somewhat handicapped in their campaign activities. The Social-Democrats who conducted the last campaign primarily with arguments and slogans against the Nazis, will now in addition face even more serious Communist opposition, while the parties of the moderate Left and moderate Eight, which were practically annihilated in the last general election, can not hope for an effective resuscitation of their respective groups.
The Hugenberg Nationalists might logically be expected to be the chief gainers in the coming election; though in the intervening six weeks some means may be found to enable electors desirous of casting their vote in such manner as to register their unequivocal support of the present Government, to do so without having to accept the unpopular leadership of Hugenberg.
Respectfully yours,