740.00/169: Telegram

The Ambassador in France (Bullitt) to the Secretary of State

620. François-Poncet, French Ambassador in Berlin, whose judgment with regard to events in Germany is often remarkably accurate, stated to me yesterday that he had never been so pessimistic with regard to Germany’s intentions as he was at the present moment.

He said that he believed Schacht was now without any real influence on Hitler. He believed that the Germans would continue to talk about their desire to enter into economic collaboration with the rest of the world; but would ask a price for their abandonment of economic autarchy which the world could not accept, I added they had already indicated that a part of the price would be the return of all the colonies that were taken from them by the Treaty of Versailles.

He believed that Schacht’s conversations would be in reality a smoke screen behind which Hitler would await the propitious moment to lay hands on Austria and Czechoslovakia. He felt certain that the status quo in Central Europe would not remain intact for another 12 months. If the Germans should take over Austria it might not mean general war. If they should attack Czechoslovakia, France would march at once; England would be compelled to mobilize and within a few weeks the entire Continent would be at war. He added that he had never known the Nazis to be so confident or so difficult to deal with.

Bullitt