862.00/3293: Telegram
The Ambassador in Germany (Dodd) to the Secretary of State
[Received July 5—2:40 p.m.]
128. My 126, July 2, 6 p.m. In the complete absence of details as to the alleged plot and pending publication of full list of those executed attempt to estimate recent events is still largely guesswork. While those elements of the right and of the left which appeared the most immediately dangerous to the administration have been eliminated it is uncertain to what extent this was due to precaution, prevention or mere vindictiveness. If true the story is highly suggestive that a representative of the Reichswehr should have formed part of the Drum Head Tribunal which ordered many of the executions in Berlin though whether this represents a measure of protection characteristic of suspected members of the Army or of active support of the administration by that body is also not clear.
Papen has tendered his resignation as Vice Chancellor and Hindenburg has refused the same. After his treatment since the Marburg speech, see despatch No. 946, June 20, and telegram No. 126, July 2, Papen’s action is natural. The Chancellor, however, is said to desire his presence in the Cabinet as Commissioner for the Saar. Papen’s popularity and conservative and Roman Catholic connections are presumably an asset at the present moment but it is difficult to believe that he will long remain in office.
I have visited the Minister of Economics.21 He is genuinely sick and much perturbed at effect abroad of executions. Whether he will [Page 232] return to office after his leave is said to depend on the outcome of the struggle between his Ministry backed by the industrialists and exporting interests in favor of devaluating the mark and Sehacht22 who remains firm in opposition to such a policy.
A decree that the Chief of Staff of the S.A. need not be a member of the Cabinet seems indicative of the reduced role which the storm troops are expected to play. Although the French Embassy has been assured by the Foreign Office that it is not the foreign power alleged to be implicated in the plot this does not prevent the Nazi Angriff from quoting a London United Press story to the contrary with approval. Possibly such allegations are considered the best excuse for death of Schleicher.
Among the intelligentsia there appears to be considerable covert indignation at the medieval spirit in which the Chancellor dealt with the situation and while this probably has no immediate significance there are indications that the Government is nervous.
Confidentially and reliably informed that while physically speaking President is better mentally he scarcely reacts to graver public problems.