862.00 P.R./133
The Chargé in Germany (Gordon) to the Secretary of State
[Received April 22.]
Sir:
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2. Reorganization of Industry, Agriculture, and Commerce. The political revolution in Germany is now being followed by a radical reorganization of the leading organizations representing business, industry and agriculture, along lines corresponding to the political alignment in the Reich. (See despatch No. 2287 of April 6, 1933, going forward in this pouch.)
Leaders in business and industry, who until a few months ago were regarded as the pillars of national economy and who in many respects were more powerful than Reich Cabinet Ministers, have given up their positions of power under pressure from Nazi quarters. Dr. Luther had to leave the Reichsbank, Dr. Kastl had to withdraw from the Reichsverband der Deutschen Industrie, while Dr. Silverberg, the prominent [Page 273] Rhenish industrialist, has resigned from the Cologne Chamber of Commerce of which he was President. These men were replaced by Nazis or persons acceptable to them. Similar changes took place in practically all chambers of commerce, wholesale and retail associations, associations of department stores, exporters’ and importers’ associations, etc. Certain organizations of this type, in anticipation of Nazi pressure, hastened to assure the Government of their unqualified support. The various peasants’ associations and the leading agrarian Landbund have been consolidated into one gigantic agricultural organization under Nazi leadership.
These sweeping enforced changes in all branches of the national economy are perhaps even more revolutionary than the political upheaval which preceded them. They probably constitute the transition from the political phase of the national revolution to the social revolution and may prove to be the foundation for the new social order in the Third Reich as envisaged by the Nazi leaders.
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Respectfully yours,