Memorandum by the Under Secretary of State (Castle)

The German Ambassador, when he came to see me to report his return to the United States, talked for some time about the political situation. He said that he was inclined to feel that the present government would last for some time. He said that everyone believed [Page 317] that Hitler had already reached the high point of his career and that, in the coming elections, he would probably lose perhaps 20 seats which would mean the beginning of a probably rapid disintegration of his power; he said that Hitler had hurt his own reputation very seriously by his personal attacks on Hindenburg, who still was a deeply respected President; that he had irritated people by demanding everything in his interview with Hindenburg, when he should have shared in the responsibility of the government; that he had disgusted people with his defense of the murderers at Beuthen.

The Ambassador said that Hindenburg was in excellent health and seemed very active mentally although, of course, he was not as quick mentally as he used to be.

The Ambassador said that the whole atmosphere in Germany had improved even during the time he was there, that probably the result of the Conference in Lausanne had lifted the cloud and that people really felt that better times were coming again; he said that business was slightly improved and that unemployment, in consequence, was becoming slightly less serious.

W. R. Castle, Jr.