362.00/2899

The Chargé in Germany (Kliefoth) to the Secretary of State

No. 2163

Sir: In amplification of my telegrams Nos. 10, 11 and 12, of January 28 and 30, 1933, respectively,2 and in continuation of section 2 of despatch No. 2159 of January 30, 1933,3 I have the honor to report that, following the President’s refusal to authorize von Schleicher to dissolve the Reichstag, the entire Schleicher Cabinet resigned on January 28, and that a new Cabinet headed by Hitler was appointed within forty-eight hours. The Hitler Cabinet is based on the support of the Nazis, Hugenberg Nationalists and the Stahlhelm, and thus constitutes the “national concentration” for which Hugenberg and von Papen have been striving right along.

Von Schleicher’s downfall is attributed largely to his failure to secure the cooperation of the Nazis, his conciliatory attitude toward organized labor, and his refusal to yield to unreasonable demands by the powerful agrarian interests. He was the victim of political intrigue by a small group of Nationalists who desired a purely reactionary government and through personal contact with President von Hindenburg and his immediate advisers succeeded in undermining his position.

While it passed as an open secret that von Schleicher did not enjoy the President’s confidence in the same measure as his predecessor, von Papen, few people expected that this Machiavelli of post-war Germany, who is reputed to have made and unmade chancellors, would suffer shipwreck so soon and as a result of similar machinations by his former political collaborators.

It appears now that von Papen, whose downfall about two months ago was attributed to his successor, General von Schleicher, was chiefly instrumental in causing the latter’s own defeat. There can be no doubt now that von Papen’s secret meeting with Hitler about four weeks ago was a plot against von Schleicher’s chancellorship and that the attacks [Page 184] upon von Schleicher by the Landbund and the Hugenberg Nationalists which followed had been deliberately planned with a similar purpose in view.

The fact that von Papen was able to form the new Cabinet in such a brief space of time shows clearly that he had prepared the ground long before von Schleicher’s resignation. With the formation of the Hitler Cabinet the reconciliation between Hugenberg and Hitler, the restoration of the so-called Harzburg Front, has at last been achieved. Cooperation between the Nazi and Nationalist members of the Cabinet may prove difficult because of the divergent interests of these two parties. However, the indications are that Hitler will at first concentrate his efforts on the struggle against the Social-Democrats and Communists—the common political enemy of the groups represented in his Cabinet—in order to detract attention from what seem to be unavoidable conflicts within the Government.

As matters now stand, the two Catholic parties (Center and Bavarian People’s Party) will occupy a pivotal position in the Reichstag. Without the support of these parties Hitler cannot hope for a workable majority. It appears that von Papen deliberately failed to inform the Center Party of the progress of his negotiations with the Nazis which made the Hitler Cabinet possible. These negotiations were conducted with unusual secrecy, reminiscent of von Papen’s activities during the war.

While the Center favors Nazi participation in government, the structure of the Hitler Cabinet is not to its liking. The only available portfolio is that of Minister of Justice, and it is not likely that this party will agree to share responsibility of government in return for this politically unimportant post.

Attempts are now being made to induce the Center at least to “tolerate” the new Cabinet. As pointed out in my telegram No. 12 of January 30, 5 p.m., Hitler can count at best on about 270 votes in the Reichstag out of a total of 584. In order to escape parliamentary defeat he must at least make certain that the Center will not vote against him. Unless an arrangement along this line is reached, a dissolution of the Reichstag and new elections seem unavoidable.

The Nazis are now endeavöring to dispel the apprehensions which the formation of the Hitler Cabinet evoked among the republican elements and in the ranks of organized labor. Dr. Frick, the Nazi Minister of the Interior, declared in reply to questions by representatives of the German and foreign press, that the new Cabinet was not planning to change the Constitution or to suppress the Communist Party.

According to circles close to the new Government, the Nazis were actually considering the possibility of outlawing the Communist Party [Page 185] and expelling the Communist deputies from the Reichstag, which would then give the Hitler Cabinet a majority without the Center Party. It is now stated on good authority that this question was brought up at the first meeting of the new Cabinet yesterday, but that the matter was finally dropped by the Nazis owing to opposition by Baron von Neurath and other members of the Cabinet, who pointed out that Moscow would not fail to resort to reprisals and that Germany, especially in view of the present heavy unemployment, could not afford to jeopardize her trade with Russia.

The new Government has thus far made no enunciation of policy. The reactionary and monarchist influence which predominates in the new Cabinet, however, indicates clearly what course it may be expected to pursue.

The Social-Democrats and the trade unions have issued an appeal to the German workmen to disregard “the premature and therefore harmfur” attempts by irresponsible elements to call a general strike as a means of retaliation against the new reactionary régime. Attempts by the Communists to incite the workmen to a general strike have thus far been without success.

It is understood that Dr. Plank, the Secretary of State in the Chancellor’s office, and Herr Marcks, the head of the Government Press Bureau, are to be replaced by dyed-in-the-wool Nazis. I have been informed, in confidence, by Dr. Ritter, the Chief Economist in the Foreign Office, that the new Government intends to exert pressure on Dr. Luther to resign in order to make Dr. Schacht president of the Reichsbank.

The Steering Committee decided yesterday to convene the Reichstag on February 7, unless the Government should desire to read its declaration of policy earlier.

The new Cabinet is constituted as follows:

Chancellor: Adolf Hitler
Vice-Chancellor and Reich Commissioner for Prussia: von Papen
Minister for Foreign Affairs: Baron von Neurath
Minister of the Interior: Dr. Frick
Minister of Defense: General von Blomberg
Minister of Finance: Count Schwerin von Krosigk
Minister of Economics and Minister of Agriculture: Dr. Hugenberg
Minister of Labor: Franz Seldte
Minister of Posts and Transportation: Baron von Eltz-Rübenach
Minister without portfolio: Captain Göring

Herr Göring has also been appointed Reich Commissioner for Aviation and Reich Commissioner in chargé of the Prussian Ministry of the [Page 186] Interior. Dr. Gereke has been retained as Reich Commissioner for Productive Unemployment Relief. A Minister of Justice is to be appointed later.

Respectfully yours,

Alfred W. Kliefoth
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