University of Delaware Library

Messersmith, George S. (George Strausser), 1883-1960.

George S. Messersmith papers

1907-1955


Descriptive Summary

Identification: MSS 109


Creator: Messersmith, George S. (George Strausser), 1883-1960.


Title: George S. Messersmith papers


Inclusive Dates: 1907-1955


Extent: 11 linear feet and 1 oversize box and 1 oversize folder


Abstract: Diplomatic and professional papers of George S. Messersmith (1883-1960). Consists of correspondence, memoranda, and official dispatches written during Messersmith’s tenure with the U.S. Department of State, as well as during his subsequent business career. The extensive typescript of an unpublished memoir is also present. The papers include extensive discussions of political and economic matters regarding Europe during the 1930s and Latin America in the 1940s and 1950s.


Language: Materials entirely in English.



Citation

MSS 109, George S. Messersmith papers, Special Collections, University of Delaware Library, Newark, Delaware.

Shelving Summary

Boxes 1-20, 22-33: Shelved in SPEC MSS manuscript boxes

Box 21: Shelved in SPEC MSS oversize boxes (17 inches)

Removals: Shelved in SPEC MSS oversize boxes (24 inches)

Location

Special Collections Department, University of Delaware Library / Newark, Delaware 19717-5267 / Phone: 302-831-2229 / Fax: 302-831-6003 / URL: http://www.lib.udel.edu/ud/spec/

Source

Gift of the Estate of George S. Messersmith, 1960.

Processing

Processed and calendar created by Ruth Alford, May 1973.

XML encoding funded by the Unidel Foundation, 2003.

EAD encoded by Jaime Margalotti, Thomas Pulhamus, and Lora J. Davis.

Digitization funded by NHPRC grant, 2010.

Materials Available in Alternative Format

Access to digital copies of the original documents in the Messersmith papers are available by following PDF links in the finding aid below. These digitized files are housed in D-Space, the University of Delaware Institutional Repository, where readers may "browse this collection" by various fields or use advanced searches to query full text of the PDF documents. To find out more information about the digitized collection, please visit http://www.lib.udel.edu/ud/spec/findaids/messersmith/index.html.

    QUICK SEARCH of full text transcriptions of the Messersmith papers

To search within this finding aid, please use the search features provided by your browser. For example, users of Firefox should use the key combination "Ctrl" + "F" to cause a search box to appear.


The collection is open for research.

Terms Governing Use and Reproduction

Use of materials from this collection beyond the exceptions provided for in the Fair Use and Educational Use clauses of the U.S. Copyright Law may violate federal law. Permission to publish or reproduce is required from the copyright holder. Please contact Special Collections Department, University of Delaware Library, http://www.lib.udel.edu/cgi-bin/askspec.cgi


Biographical Note by Ruth Alford

The career of George Strausser Messersmith explodes the myth of the diplomat as "cookie pusher." Although he enjoyed social life, and he and Mrs. Messersmith entertained frequently, he was also a hard worker, spending long hours at his desk every day.

Born in Fleetwood, Pennsylvania in 1883, Messersmith spent his early years in Pennsylvania, and after graduating from Keystone State Normal School in 1900, he studied at Delaware College, now the University of Delaware. For several years he held various positions as teacher and administrator in the Delaware school systems. In 1914 he married Marion Lee Mustard, and in the same year he entered the Foreign Service.

His first assignment was to a consular post in Fort Erie, Canada, where Messersmith said there was so little to do that he spent most of his time studying the Foreign Service regulations. On leaving the post in 1916, he recommended that the consulate there be closed as there was no real need for it, and his recommendation was accepted. He spent the years of World War I as Consul at Curacao in the Netherlands West Indies, where he discovered a secret German code, which enabled authorities in the United States to arrest and deport a number of enemy agents. From 1919 to 1928 Messersmith served first as Consul then as Consul General in Antwerp. From there he was sent to Buenos Aires as Consul General, thence to Berlin as Consul General in 1930. In 1934 he was named Minister to Austria, a post he held until 1937, when he was called back to America to serve as Assistant Secretary of State, with the specific duty of reorganizing the administration of the State Department, and he is said to have "streamlined" the Department. In 1940 he was posted as Ambassador to Cuba, where he remained until the end of 1941, when he was the President's choice for Ambassador to Mexico. At the end of World War II, relations between Argentina and the United States were strained, and it was the decision of President Truman and Secretary of State James F. Byrnes early in 1946 to send Messersmith to Buenos Aires as Ambassador, with expressed charge of improving relations between the two countries, and bringing Argentina into line with the other American republics. After completing his mission there in 1947, Messersmith retired from the Foreign Service. His administrative abilities having been recognized, he was offered the position of Chairman of the Board of Mexican Light and Power Company, and served successfully in that capacity until his retirement from the Company in 1955. He died in Mexico in 1960.

It may be safely said that, with the exception of Germany, each country in which Messersmith served was on better terms with the United States when he left than when he arrived. Even in Germany, the Nazis respected him because he stood his ground with them, although it was reported that Hitler "frothed at the mouth" when Messersmith's name was mentioned. As frankly as he spoke to various Nazi officials, it is significant that he was able to remain on speaking terms with them, for it was necessary to deal with them in order to protect American interests. It was said of Sumner Welles that he knew five languages well, but could hold his tongue in all fo them. Messersmith certainly knew four languages well, and held his tongue in none of them, unless it was the better part of diplomacy to do so.

At his several posts in Latin America, Messersmith was a staunch supporter of Roosevelt's "Good Neighbor Policy," and a believer in the importance of hemisphere solidarity. While recognizing that his first duty was to his won government, he was sensitive to the rights and needs of the countries to which he was posted and insisted on their fair treatment. He felt that although the United States should take the lead in inter-American affairs, she should do so unobtrusively, and not appear to carry a "big stick."

In the matter of career diplomats as opposed to political appointees, Messersmith usually favored the career man. He recognized, however, the occasional necessity for the appointment of other than career Foreign Service officers, when someone with special abilities was needed, and there was no one available within the Service, but he was unalterably opposed to awarding ambassadorships to pay off political debts.

A keen observer, Messersmith reported in detail on events and conditions as he saw them. His colleagues in the State Department sometimes complained of the length of his letters and despatches, but they all agreed on the usefulness of his reports. During the early years of the Hitler regime, he predicted with great accuracy the course of events in Europe unless Hitler and the Nazi Party were overthrown before they acquired greater power. He even said, "It is better to fight a small war now than a catastrophic one later," and because of the statement was accused of being a war-monger. His observations and comments on the character and ability of many of the people with whom he came in contact are very illuminating. One's first impression on reading Messersmith's letters and despatches is that he is somewhat pompous and pedantic, but occasionally his warmth shows through. Certainly he had many friends who not only admired him but regarded him with affection, from Roosevelt and Cordell Hull, to ex-King Carol of Rumania, to Adolf, a messenger in the American legation in Austria. His sympathy for the Jewish people during their persecution was as obvious as his hatred of the Nazis, and he helped when it was possible. It is said that many people who are alive today owe their lives to Messersmith.

During his lifetime, Messersmith exerted a definite influence on world affairs. His opinion and advice on many questions were sought and usually accepted, but, it must be admitted, he did not always wait to be asked. Perhaps future historians will recognize his contributions and accord him the place in history he must certainly deserves.

Sources:

Biographical note written by Ruth Alford, May 1973.


Scope and Content Note

The papers of George Strausser Messersmith were bequeathed to the University of Delaware and were received in 1960 after Messersmith's death. Dr. Walther Kirchner of the History Department, noting the dearth of original source materials for historical research in the University Library, suggested that Messersmith's papers would be a valuable addition to the library's manuscript collection. He approached Dr. Wilbur Owen Sypherd, Professor of English and long-time friend of Messersmith. Messersmith was at the time living in retirement in Mexico. Dr. Sypherd wrote to Messersmith, and Messersmith replied that he hoped to do some writing during his retirement and would need his papers for references, but that he would add a codicil to his will stating that, on his death, the papers should go to the University of Delaware.

A few of the letters or documents mentioned in the papers are missing. Mrs. Messersmith wrote the President John A. Perkins shortly after her husband's death, stating that a member of the American Embassy staff in Mexico City had gone over the papers with her and removed some of them, apparently because he considered them highly classified.

The papers are concerned chiefly with the period 1932 to 1947, when Messersmith left the Foreign Service, although a few of them deal with earlier years and a few were written after his retirement. Arrangement of the calendar is chronological. Entries for undated papers are placed at the end unless an approximate date could be ascertained through internal evidence, in which case the date is enclosed in brackets. Names and other information supplied by the compiler are also bracketed. Entry numbers 1921-2035 describe notes for Messersmith's memoirs, which he had hoped to publish. As Messersmith himself states, these were dictated at random, as ideas or incidents occurred to him, without regard to chronology and without referring to his papers. Most of them were certainly dictated during 1955, although a few, numbers 1921 to 1933, were obviously written much earlier. They have been left in the order in which they were apparently dictated.

To verify names, the compiler used many sources, including various biographical directories, the New York Times Index, and the Register of the U.S. State Department.

The compiler acknowledges gratefully the assistance and valuable suggestions of many of her colleagues on the staff of the University of Delaware Library. She is also grateful to Mrs. Fe Broten, who typed the manuscript, and to Dr. John Dawson, Director of Libraries, for his support of the project.


Selected Search Terms

Personal Names
Acheson, Dean, 1893-1971.
Avila Camacho, Manuel, 1897-1955.
Batista y Zaldívar, Fulgencio, 1901-1973.
Berger-Waldenegg, Egon.
Braden, Spruille, 1894-
Byrnes, James Francis, 1879-1972.
Carr, Wilbur John, 1870-1942.
Hull, Cordell, 1871-1955.
Messersmith, George S., (George Strausser), 1883-1960.
Dunn, James Clement, 1890-
Cortina, José Manuel, 1932-
Einstein, Albert, 1879-1955.
Fodor, Marcel William, 1890-
Geist, Raymond Hermann.
Goebbels, Joseph, 1897-1945.
Göring, Hermann, 1893-1946.
Hitler, Adolf, 1889-1945.
Moffat, Jay Pierrepont, 1896-1943.
Mussolini, Benito, 1883-1945.
Padilla, Ezequiel, 1890-
Papen, Franz von, 1879-1969.
Phillips, William.
Roosevelt, Franklin, D. (Franklin Delano), 1882-1945.
Schact, Hjalmar Horace Greeley, 1877-1970.
Schuschnigg, Kurt, 1897-1977.
Starhemberg, Ernst Rüdiger, Fürst von, 1899-1956.
Stettinius, Edward Reilly, 1865-1925.
Welles, Sumner, 1892-1961.
Heineman, Dannie N.
Corporate Names
United States. Dept. of State.
Sozialistische Partei Österreichs.
Topical Terms
Church and state--Germany.
Jews--Persecutions.
National Socialism--History.
Statesmen--United States--Correspondence.
Geographic Names
Austria--Economic conditions.
Europe--Politics and government--1918-1945.
Argentina--Economic conditions.
Argentina--Foreign relations--United States.
Argentina--Politics and government.
Austria--Foreign relations--United States.
Cuba--Politics and government.
Cuba--Economic conditions.
Germany--Economic conditions--1918-1945.
Germany--Foreign relations.
Germany--Politics and government--20th century.
Germany--History--20th century.
Latin America--Economic conditions.
Latin America--Politics and government.
Latin America--Foreign relations--United States.
United States--Foreign relations--Latin America.
Mexico--Foreign relations--United States.
United States--Foreign relations--Mexico.
United States--Foreign relations--20th century.
United States--Foreign economic relations.
Personal Contributors
Heineman, Dannie N.
Heineman, James H.

  • I. Early career, 1907-1932
    • (Box 1, F1A: Items 0001-0005)
  • II. Berlin, Germany, 1930-1934
    • (Box 1, F1B – Box 3, F23: Items 0006-0369)
  • III. Vienna, Austria, 1934-1938
    • (Box 4, F24 – Box 8, F55: Items 0370-0892)
  • IV. Washington, D.C., 1937-1940
    • (Box 8, F56 – Box 12, F86: Items 0893-1321)
  • V. Havana, Cuba, 1940-1941
    • (Box 12, F87 – Box 13, F98: Items 1322-1485)
  • VI. Mexico City, Mexico, 1941-1946
    • (Box 13, F99 – Box 16, F116: Items 1486-1779)
  • VII. Buenos Aires, Argentina, 1946-1947
    • (Box 16, F117 – Box 17, F126: Items 1780-1893)
  • VIII. Mexico City, Mexico, 1947-1960
    • (Box 17, F127 – Box 17, F129: Items 1894-1920)
  • IX. Memoirs, undated
    • (Box 17, F130 – Box 20, F151: Items 1921-2035)
  • X. Undated documents
    • (Box 20, F152 – Box 20, F153: Items 2036-2043)
  • XI. Hugh Wilson papers, 1931-1938
    • (Box 20, F154 – Box 20, F154: Items 2044-2057)
  • XII. Messermith-related material collected by John Dawson, 1971-1974
    • (Box 20, F155 – Box 20, F156: Items 2058-2060)
  • XIII. Addresses given by Messersmith, 1928-1939
    • (Box 20, F157 – Box 20, F159: Items 2061-2973)
  • XIV. Messersmith-Dannie Heineman correspondence, 1949-1960
    • (Box 21, F160 – Box 29, F264: Items dh0001 – dh1485)
  • XV. George Messersmith-James H. Heineman correspondence, 1939-1965
    • (Box 29, F265 – Box 30, F278: Items jh0001 – jh0197)
  • XVI. Newsclippings, 1937-1981
    • (Box 31, F279 – Box 31, F283: Items cl0001- c0144)
  • XVII. Rodney Layton gift, 1914-1961
    • (Box 32, F284 – Box 33, F325: no item numbers)

To search within this finding aid, please use the search features provided by your browser. For example, users of Firefox should use the key combination "Ctrl" + "F" to cause a search box to appear.


Detailed Contents List

Series I. Early career, 1907-1932

The few documents in this series date prior to Messersmith's appointment as Consul General of Berlin. Three items date from Messersmith's tenure as Consul (and later Consul General) in Antwerp, and the other two items are miscellaneous diplomatic documents. Additional information related to Messersmith's early career is available in Series IX. Memoirs.

Items 0001-0005   [Box 1 F1A]

0001-00

Crowe, Eyre. Extract from memorandum., 1907 January 01   [Box 1 F1A]

Typed Document Copy, 1 p.

Enclosed with No. 395. Comments on futility of making concessions to Germany in vain hope that she will be conciliated; recalls gratuitous concessions of last twenty years during which a perpetual state of tension has existed between England and Germany.

PDF

0002-00

Messersmith, G.S., 1922 November 30   [Box 1 F1A]

Typed Document Copy, 14 p.

Address at Thanksgiving dinner of American Colony, Hotel de Londres, Antwerp.

PDF

0003-00

Messersmith, G.S., [1927 May 19]   [Box 1 F1A]

Typed Document, 13 p.

Describes reception in Antwerp of Crown Prince Leopold and Princess Astrid following their marriage.

PDF

0004-00

Messersmith, G.S., Antwerp. Memorandum for Foreign Service., 1928 January 27   [Box 1 F1A]

Typed Document, 18 p.

Enumerates the varied duties of Foreign Service officers; general public has little idea of work involved; all reports are sent to State Department, and from there copies are sent to the interested Department such as Agriculture or Commerce; reports are then distributed directly to the individuals or firms who will find them useful, but who probably will not know they are the work of the Consular officers; Commerce Department, for instance, gets larger appropriation, while State Department finds it difficult to stretch budget to cover necessities; suggests Foreign Service Officers, when on leave, use every opportunity to speak before business organizations and write articles for their local papers with reference to the Service and its work.

PDF

0005-00

1929 September 07   [Box 1 F1A]

Typed Document Copy, 1 p.

Press release from the Secretary of State re the disturbances in Palestine and the efforts of Mr. Paul Knabenshue, American Consul General, to protect American citizens and their property; some unreasonable requests have no doubt been made, but the Department has confidence in his ability and judgment.

PDF

Series II. Berlin, Germany, 1930-1934

Messersmith was appointed Consul General of Berlin in 1930.

Items 0006-0014   [Box 1 F1B]

0006-00

Robertson, W. Henry, American Foreign Service Officer, Retired., 1932 June 15   [Box 1 F1B]

Typed Document Copy, 11 p.

An article of the superfluous world trade extension agencies, particularly those of the Department of Commerce.

PDF

0007-00

Messersmith, G.S., Berlin. To [Henry L. Stimson], Secretary of State., 1932 July 19   [Box 1 F1B]

Typed Document Copy, 13 p.

Dispatch re the importance of informing Foreign Service officers regularly as to social and economic background of the countries to which they are accredited.

PDF

0008-00

Messersmith, G.S., Berlin. To Frederic M. Sackett, American Ambassador, Berlin., 1932 July 19   [Box 1 F1B]

Typed Letter Copy, 1 p.

Letter of transmittal accompanying copy of above dispatch.

PDF

0009-00

Strother, Shelby F., Brooklyn. To G.S. Messersmith, Berlin., 1932 November 12   [Box 1 F1B]

Typed Letter Signed, 1 p.

Lacks enclosures. Comments on enclosures apparently critical of Messersmith's

PDF

0010-00

To G.S. Messersmith, Berlin., 1932 December 06 [?]    [Box 1 F1B]

Typed Letter Signed Signature illegible, 1 p.

Indignant at attacks on Messersmith in the New York Herald and particularly at Walter Lippmann.

PDF

0011-00

Press cutting, undated, from unidentified newspaper., 1932 December [6?]   [Box 1 F1B]

1 p.

Visa to be given Einstein after questioning, but Einstein, angry, may cancel trip to America.

PDF

0012-00

Press cutting from the New York Tribune., 1932 December 06   [Box 1 F1B]

5 copies, mounted. Walter Lippmann's column in which he scores Messersmith for his handling of the Einstein case.

PDF

0013-00

Press cutting from New York Times. By cable from Berlin, Dec. 5., 1932 December 06   [Box 1 F1B]

4 cols., mounted. 2 copies. "Einstein's ultimatum brings quick visa; our Consul angered him by political quiz"; the State Department had forwarded to the Consulate in Berlin a complaint from the Woman Patriot Corporation that Einstein, because of his affiliation with Communist organizations, should not be admitted to the U.S.; Secretary of State Stimson is quoted as saying that the procedure was routine.

PDF

0014-00

Press cutting from the San Diego Union., 1932 December 06   [Box 1 F1B]

2 cols., mounted. Einstein to be given visa after questioning.

PDF

Items 0015-0032   [Box 1 F2]

0015-00

Press cutting from the New York Herald Tribune., 1932 December 07   [Box 1 F2]

3 cols., mounted. 2 copies of second and third columns. The Women's International League for Peace and Freedom, meeting with Mrs. Gerard Swope, local chairman, demands recall of George S. Messersmith; from Caputh, Germany, Dec. 6, by United Press, Einstein waives consul's "joke", laughs off "Inquisition" as schoolboy prank and accepts visa; the American Civil Liberties Union makes inquiries about State Department practices.

PDF

0016-00

Presscuttings from the New York Herald Tribune., 1932 December 07   [Box 1 F2]

4 cuttings mounted on 1 leaf. Women's International League for Peace and Freedom demands recall of Messersmith; Einstein laughs off "inquisition" as schoolboy prank and accepts visa; American Civil Liberties Union declares protest of Woman Patriot Corporation prejudiced; Walter Lippmann's attack on Messersmith in his "note on the Perfect Bureaucrat"; editorial ridicules Woman Patriot Corporation, but describes as childish Einstein's reaction to his questioning.

PDF

0017-00

Press cutting from New York Herald Tribune., 1932 December 07   [Box 1 F2]

1 col., 3 copies. Letter signed Hickman Powell in which Messersmith is called the scapegoat in the Einstein affair.

PDF

0018-00

Press cutting from Every Evening, Wilmington, Delaware., 1932 December 07   [Box 1 F2]

2 cols., mounted. Reports the Einstein case before the facts are known, but is fair to Consul General Messersmith.

PDF

0019-00

Press cutting from the Detroit News., 1932 December 07   [Box 1 F2]

1 col., mounted. Editorial denouncing U.S. Consulate officials who were so stupid as to question Einstein; nor does Secretary of State Stimson escape censure.

PDF

0020-00

Press cutting from the Los Angeles Times., 1932 December 08   [Box 1 F2]

1 col. Editorial calls Messersmith absurd in his handling of the Einstein visa case. Suggests, however, that he may have been acting under orders from Washington.

PDF

0021-00

Press cutting from the New York Herald., 1932 December 08   [Box 1 F2]

1 col., mounted. Light verse in the column, The Conning Tower, lampoons the principal figures in the Einstein case.

PDF

0022-00

Press cutting from the New York Herald, Paris edition., 1932 December 08   [Box 1 F2]

1 col., mounted. Item wirelessed from New York Wednesday, [Dec. 7]. Recall of consul is asked in Einstein case by the Women's International League for Peace and Freedom; from Berlin, by United Press, Mrs. Einstein is quoted as saying that her husband was queried "like a little boy".

PDF

0023-00

Fried, Harry L., New York City. T. G.S. Messersmith, Berlin., 1932 December 09   [Box 1 F2]

Typed Letter Signed, 1 p.

Re criticism of Messersmith following the Einstein episode; assures Messersmith of his continued confidence and esteem.

PDF

0024-00

P.V.G. Mitchell, New York City. To G.S. Messersmith, Berlin., 1932 December 09   [Box 1 F2]

Typed Letter Signed, 1 p.

Enclosures: Nos. 12, 15. Encloses clippings re the Einsteins' visa and a copy of a letter Mitchell has written to the Editor of the New York Herald Tribune protesting the unfair attack upon Messersmith.

PDF

0025-00

Moffitt, James P., Marseilles. To G.S. Messersmith, Berlin., 1932 December 09   [Box 1 F2]

Typed Letter Signed, 1 p.

Expresses concern at the criticism heaped on Messersmith after the Einstein affair and assures him that his friends know it is undeserved.

PDF

0026-00

Press cutting from the Santa Barbara Press., 1932 December 09   [Box 1 F2]

1 col. Editorial berates the State Department and Messersmith for the questioning of Einstein.

PDF

0027-00

Cable release to American Sunday Newspapers from the American Chamber of Commerce of Germany, the American Woman's Club of Berlin, and the American Club of Berlin., 1932 December 10   [Box 1 F2]

Typed Document Copy, 3 p.

A joint declaration expressing confidence in Messersmith and the American Consulate General and protesting the unjust accusations in the American and international press; includes copy of letter to the Secretary of State expressing the same sentiments.

PDF

0028-00

Record of a press conference at the Department of State., 1932 December 10   [Box 1 F2]

Typed Document Copy, 2 p.

Secretary Stimson gives correspondents the facts in the Einstein visa case.

PDF

0028-01

Department of State. Telegram., [1932] December 10   [Box 1 F2]

Typed document , 1 p.

Enclosed with No. 28. The Secretary made complete statement at press conference and telephoned [Walter] Lippmann.

PDF

0029-00

Shipley, Ruth, Chief of Passport Division, Washington, D.C. To G.S. Messersmith, Berlin., 1932 December 10   [Box 1 F2]

Typed Letter Signed, 3 p.

Expresses regret for the unjust criticism aimed at him and assures him that the State Department has completely exonerated him and the staff of the Consulate General.

PDF

0030-00

Stimson, H.L., Washington, D.C. To G.S. Messersmith, Berlin., 1932 December 10   [Box 1 F2]

Copy, 1 p.

Telegram from the Secretary of State telling of his press conference of that morning.

PDF

0030-01

Avegno, J.B.Antwerp to G.S. Messersmith,Berlin. , 1932 December 10   [Box 1 F2]

Typed Letter Signed, 1 p.

Enclosed with No. 30. Expresses indignation at article in New York Herald re Einstein incident. Encourages Messersmith to answer [Walter] Lippmann in like manner.

PDF

0031-00

Press cutting from the New York Herald Tribune. Dateline, Berlin, Dec. 9., 1932 December 10 [?]   [Box 1 F2]

1.col., mounted. Consul General Messersmith is surprised on his return to Berlin from Breslau to find himself the target of criticism in connection with the delay in granting Albert Einstein a visa; Einstein, upon application for the visa was questioned by a consular official [Raymond Geist].

PDF

0032-00

Erhardt, John G., Bordeaux. To G.S. Messersmith, Berlin., 1932 December 11   [Box 1 F2]

Autograph Letter Signed, 1 p.

Is pleased to see Messersmith's friends rallying to his support; mentions specifically a letter which appeared in the Herald for Dec. 11.

PDF

Items 0033-0048   [Box 1 F3]

0033-00

Press cutting from the New York Herald Tribune., 1932 December 11   [Box 1 F3]

3 cols., mounted. First part of article lacking. Einstein sails for America, in good humor, and says the visa incident is closed; Secretary of State Stimson tells newsmen he is sure that the questioning of Einstein on his political beliefs was conducted civilly and that the purpose of the questions was misunderstood.

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0034-00

Press cutting from the New York Times., 1932 December 11   [Box 1 F3]

1 col. Removed to SPEC MSS oversize boxes. 2 copies. Einstein embarks for America, says affair of his visa is closed; American colony in Berlin defend consul; Einstein discusses value for the laity of his research; Stimson says law required action by American Consul.

0035-00

Press cutting from the Washington Post. Editorial., 1932 December 11   [Box 1 F3]

1 col., mounted. 2 copies. Professor Einstein's case is fairly stated; on a previous visit to the United States he was an official representative of his government and was granted visa without personal examination, but as a private citizen he is now required to answer the same questions put to all other aliens; the immigration law applies to all persons without regard to their eminence or obscurity.

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0036-00

Press cutting from the New York American., 1932 December 11   [Box 1 F3]

2 cols., mounted. The American colony of Berlin cables Secretary Stimson supporting Messersmith; Prof. and Mrs. Einstein sail for California, where Einstein will do research at the Mt. Wilson Observatory before going to Princeton for scientific study; Einstein says he will not let the visa incident spoil his trip and now realizes the Consular official was only doing his duty; George Bernard Shaw, questioned about Einstein, replied, "Keep Einstein out of America? Why, they can't do that. Every intelligent man in Europe's a Communist today."

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0037-00

1932 December 11   [Box 1 F3]

1 col. Presscutting from Chicago Sunday Tribune, reporting appeal sent by the American colony in Germany for retraction of statements made about Messersmith and the Berlin Consulate General.

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0038-00

Press cutting, undated, from unidentified newspaper. Datelined Bremerhaven, Dec. 10 and Berlin, Dec. 10., 1932 December [11?]   [Box 1 F3]

1 col. Albert Einstein hopes no summary action will be taken against the Consular official who questioned him about his political beliefs when he applied for his visa; Americans in Berlin cable State Department protesting criticism of Messersmith.

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0039-00

Press cutting from the Chicago Tribune, datelined Berlin, Dec. 10., 1932 December [11?]   [Box 1 F3]

1 col. American colony in Berlin backs U.S. Consulate in Einstein quiz; Messersmith in Breslau at the time: Einstein interviewed by Raymond Geist.

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0040-00

Press cutting from New York Herald., 1932 December [11?]   [Box 1 F3]

1 col., mounted. Professor Einstein is gay as he starts trip; jokes about questions at American Consulate.

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0041-00

Messersmith, G.S., Berlin. To Oswald G. Villard, New York., [1932 December 11?]   [Box 1 F3]

Copy, 2 p.

Telegram to editor of Nation asking his help in correcting or counteracting the statements made by Walter L. Lippmann and others.

PDF

0042-00

Alberti, Sidney S., Antwerp. To G.S. Messersmith, Berlin., 1932 December 12   [Box 1 F3]

Autograph Letter Signed, 2 p.

Was shocked to read of the scandalous attack on Messersmith and was sure that it was all wrong; was glad that subsequent news confirmed his convictions.

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0043-00

1932 December 12   [Box 1 F3]

2 cols., mounted. Clipping from Time Magazine reports that Einstein was questioned on his political beliefs because of the complaint of the Woman Patriot Corporation; after his return from the U.S. Consulate, Einstein was quoted as saying he would cancel his American visit if the visa was not issued in 24 hours; it was issued.

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0044-00

Cutting from The Commonwealth Editorial., 1932 December 12   [Box 1 F3]

1 col. Removed to SPEC MSS oversize boxes. Condemns Walter Lippmann for his sarcasm; praises Messersmith; wonders why Lippmann "lambasted" him for doing his duty; believes regulations should be impartially applied.

0045-00

[Dreyfus], Louis [G., Jr.], Copenhagen. To G.S. Messersmith, Berlin., 1932 December 12   [Box 1 F3]

Autograph Letter Signed, 2 p.

Congratulates Messersmith on outcome of Einstein case; the incident was an example of the harm that can be done by newspapers and their correspondents; comments on the vagueness of some of the State Department instructions. [First name only].

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0046-00

1932 December 12   [Box 1 F3]

Typed Document Copy, 1 p.

Extract from report of the press conference of the Secretary of State in regard to Einstein incident.

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0047-00

Fullerton, Hugh S.Lyon, France. To G.S. Messersmith, Berlin., 1932 December 12   [Box 1 F3]

Typed Letter Signed, 2 p.

Expresses indignation over the Einstein affair; Lippmann's comment was absurd and uncalled for; thinks Einstein intent upon exploiting the American pocketbook; feels that Messersmith will be the gainer from the incident.

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0048-00

Mayer, David, Antwerp. To G.S. Messersmith, Berlin., 1932 December 12   [Box 1 F3]

Typed Letter Signed, 1 p.

Expresses his regret over the Einstein affair and say he doesn't believe a word of it.

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Items 0049-0067   [Box 1 F4]

0049-00

Messersmith, G.S., Berlin. To H.L. Stimson, Washington, D.C., 1932 December 12   [Box 1 F4]

Typed Letter Copy, 19 p.

Dispatch to the Secretary of State, giving full particulars of the Einstein visa case and how it was handled at the Consulate; thanks Stimson for his generous statements to the press.

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0050-00

Spinner, Robert P., Riga, Latvia. To G.S. Messersmith, Berlin., 1932 December 12   [Box 1 F4]

Typed Letter Signed, 1 p.

Expresses sympathy on account of criticism in connection with the Einstein visa; assures Messersmith that his friends know that whatever he did it was in the discharge of his duty and that he would never be discourteous.

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0051-00

Villard, Oswald G., New York City. To G.S. Messersmith, Berlin., 1932 December 12   [Box 1 F4]

1 p.

Telegram. Has communicated with Lippmann and is writing favorably in Nation.

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0052-00

Gary, Hampson, New York City. To G.S. Messersmith, Berlin., 1932 December 13   [Box 1 F4]

Autograph Letter Signed, 1 p.

Assures Messersmith he need have no concern over the Einstein incident, that it "only served to emphasize his fine services for the U.S."

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0053-00

Wolf, George W., Barcelona. To G.S. Messersmith, Berlin., 1932 December 13   [Box 1 F4]

Typed Letter Signed, 1 p.

Expresses resentment over the unfair news article respecting the Einstein case; is happy that he has been so well defended and completely exonerated.

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0054-00

Messersmith, G.S., Berlin. To James P. Moffitt, Marseilles., 1932 December 13   [Box 1 F4]

Typed Letter Copy, 2 p.

Thanks Moffitt for his expressions of friendship and explains that during his absence at Breslau Einstein had applied for a visa to the U.S. and that the matter had been handled by [Raymond] Geist; is sure that it was done with discretion.

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0055-00

Mitchell, P.V.G., New York City. To G.S. Messersmith, Berlin., 1932 December 13   [Box 1 F4]

Typed Letter Signed, 1 p.

Lacks enclosure. Informs that Lippmann has withdrawn his criticism and encloses clipping.

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0056-00

Press cutting, Chicago Daily Tribune, Paris. (Special to the Tribune, Berlin, Dec. 12.), 1932 December 13   [Box 1 F4]

1 col. Messersmith is vindicated by Stimson in incident over Einstein's visa.

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0057-00

Press cutting, New York Herald, Paris. (From Herald Tribune Bureau, Berlin, Monday [Dec. 12])., 1932 December 13   [Box 1 F4]

1 col. Stimson's cable to Messersmith in which he tells of his press conference is quoted; it completely clears Messersmith and the Consulate of any indiscretion.

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0058-00

Press cutting from the New York Herald Tribune., 1932 December 13   [Box 1 F4]

4 cols., mounted. Walter Lippmann quotes telegram from Secretary of State and withdraws criticism of Messersmith, but says someone is responsible for provoking the Einstein incident; Secretary of State Stimson makes public a cablegram received from three American organizations in Berlin; Messersmith is praised as a distinguished, non-bureaucratic official.

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0059-00

Mayer, David, Antwerp. To G.S. Messersmith, Berlin., 1932 December 14   [Box 1 F4]

Typed Letter Signed, 1 p.

note congratulating Messersmith on outcome of the Einstein affair.

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0060-00

Messersmith, G.S., Berlin. To Ralph C. Busser, Leipzig., 1932 December 14   [Box 1 F4]

Typed Letter Copy, 1 p.

Expresses appreciation for the clipping from The Manchester Guardian; if all newspapers had been as careful much misunderstanding would have been avoided.

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0061-00

Messersmith, G.S., Berlin. To Louis G. Dreyfus, Jr., Copenhagen., 1932 December 14   [Box 1 F4]

Typed Letter Copy, 3 p.

Acknowledges Dreyfus' letter; believes that if his many generous friends had not come so promptly to his defense his career might have been ruined; explains what really happened with regard to the Einstein visa; thinks the affair may have some good effects if it teaches newspapermen to be more careful in ascertaining facts.

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0062-00

Messersmith, G.S., Berlin. To John G. Erhardt, Bordeaux., 1932 December 14   [Box 1 F4]

Typed Letter Copy, 3 p.

Thanks Erhardt for his note; believes career might have been ruined except for support of friends; comments on Nicholas Murray Butler's statement that his "heart wept for his country at the spectacle of what happened at the Consulate General at Berlin"; the Einsteins conducted their application for a visa with the press before applying at the Consulate; thinks they were afraid to appear in person because of Einstein's known connection with radical organizations.

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0063-00

Messersmith, G.S., Berlin. To Hugh S. Fullerton, Lyon, France., 1932 December 14   [Box 1 F4]

Typed Letter Copy, 2 p.

Is grateful for the many expressions of friendship; explains background of Einstein incident; Einstein was very nervous and feared that he might be refused a visa because of his known leftist activities; realizes that he came out of the affair without damage because of friends in high places who came to his support.

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0064-00

Messersmith, G.S., Berlin. To David Mayer, Antwerp., 1932 December 14   [Box 1 F4]

Typed Letter Copy, 2 p.

Thanks Mayer for letter; friends are ones dearest possessions; assures Mayer that the Einsteins were shown every consideration but their attitude while at the Consulate made it very difficult; believes Mrs. Einstein a publicity seeker and responsible for most of the trouble.

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0065-00

Press cutting from the Baltimore Sun., 1932 December 14   [Box 1 F4]

1 col. Letter, stating criticism of Messersmith for his treatment of Einstein misdirected since he was absent at the time; Secretary of State Stimson and U.S. immigration laws should be blamed; signed John O'Ren.

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0066-00

Press cutting from New York Herald, Paris., 1932 December 14   [Box 1 F4]

1. col. Walter Lippmann retracts criticism of Messersmith.

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0067-00

Press cutting from The Nation. Editorial., 1932 December 14   [Box 1 F4]

1 col. Hopes Einstein "will meet this fantastic indignity [his questioning] with his usual tolerance and good humor and will prove his infinite superiority to officious ignoramuses - in office and out - by coming to America and forgiving us our trespasses".

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Items 0068-0083   [Box 1 F5]

0068-00

Stimson, H.L., Washington. To G.S. Messersmith, Berlin., 1932 December 14   [Box 1 F5]

Copy, 1 p.

Telegram informs Messersmith that Walter Lippmann has withdrawn criticism in an article in the New York Herald Tribune of Dec. 13.

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0069-00

Fletcher, Andrew, New York City. To G.S. Messersmith, Berlin., 1932 December 15   [Box 1 F5]

Autograph Letter Signed, 1 p.

Christmas and New Year greeting card with clipping (Lippmann's retraction) attached; message states that though he has always been a Lippmann admirer, he was probably only one of many Messersmith friends who wrote protesting letters.

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0070-00

Messersmith, G.S., Berlin. To Allen Klots, Washington, D.C., 1932 December 15   [Box 1 F5]

Copy, 1 p.

Telegram thanking Klots, Secretary of State Stimson, and Mrs. [Ruth] Shipley for all they have done.

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0071-00

Messersmith, G.S., Berlin. To Oswald Villard, New York City., 1932 December 15   [Box 1 F5]

Typed Letter Copy, 10 p.

3 copies. Gives a detailed account of the Einstein visa case.

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0072-00

Press cutting from the Journal of Commerce. Editorial., 1932 December 15   [Box 1 F5]

1 col. Applauds Consular officials for impartial application of the regulations governing issue of visas.

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0073-00

Carleton, Algar E., Riga. To G.S. Messersmith, Berlin., [1932] December 16   [Box 1 F5]

Autograph Letter Signed, 1 p.

Congratulates Messersmith on coming off with full honors in the Einstein visa case; was not concerned with manner in which Messersmith or his staff handled the incident so much as with possible repercussions in Congress.

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0074-00

Messersmith, G.S., Berlin. To Sidney S. Alberti, Antwerp., 1932 December 16   [Box 1 F5]

Typed Letter Copy, 2 p.

Thanks Alberti for his letter; attaches little blame to Einstein, but thinks Mrs. Einstein was very indiscreet in her interviews with the press.

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0075-00

Messersmith, G.S., Berlin. To Allen T. Klots, Washington, D.C., 1932 December 16   [Box 1 F5]

Typed Letter Copy, 7 p.

Thanks Klots for his support and recapitulates the whole of the Einstein visa affair.

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0076-00

Whittemore, C.W., Amsterdam. To the Editor of the Paris Herald., 1932 December 16   [Box 1 F5]

Typed Letter Copy, 1 p.

Comments on Walter Lippmann's retraction of his criticism of Messersmith; notes that he does not retract what he said about how officials administer the law; believes that brutal attacks of this sort upon government representatives are to be deplored; the prestige of U.S.

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0077-00

Messersmith, G.S., Berlin. To Mrs. Ruth B. Shipley, Chief, Passport Division, State Department, Washington, D.C., 1932 December 17   [Box 1 F5]

Typed Letter Copy, 3 p.

Thanks Mrs. Shipley for bringing the Einstein incident to the Secretary's attention; affair might have wrecked his career but he doesn't intend to let [Raymond] Geist bear the full responsibility for it; expects to remain in Berlin for Christmas and entertain friends and the official family.

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0078-00

Messersmith, G.S., Berlin. To Robert P. Skinner, Riga, Latvia., 1932 December 17   [Box 1 F5]

Thanks Skinner for his letter; realizes more than ever that friendships are ones dearest possessions; hopes that the Einstein incident will have some worthwhile effects.

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0079-00

Messersmith, G.S., Berlin. To George W. Wolf, Barcelona., 1932 December 17   [Box 1 F5]

Typed Letter Copy, 2 p.

Grateful for letter; press reports concerning Einstein incident were 95 percent without foundation; assures Wolf that Einstein was treated courteously.

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0080-00

Literary Digest clipping on the Einstein "Inquisition.", 1932 December 17   [Box 1 F5]

2 cols., mounted. Concedes that the handling of the Einstein may have been "technically correct," but blasts the State Department for its stupid procedures.

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0081-00

Press cutting from The Neptune, Antwerp., 1932 December 17   [Box 1 F5]

1 col., mounted. 2 copies. The Antwerp American Club defends Messersmith in the Einstein affair and cables the Secretary of State, denouncing recent criticism as emanating from parties uninformed.

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0082-00

Alberti, Sidney A., Antwerp. To G.S. Messersmith, Berlin., 1932   [Box 1 F5]

Typed Letter Signed, 1 p.

Thanks Messersmith for his letter; thinks it ridiculous that so much noise should be made over this [Einstein] affair.

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0083-00

Messersmith, G.S., Berlin. To Algar E. Carleton, Riga., 1932 December 19   [Box 1 F5]

Typed Letter Copy, 2 p.

Appreciates Carleton's note with regard to Einstein case; misleading newspaper comment was disagreeable and not only dangerous from a personal point of view, but also tended to place U.S. visa practice in the wrong light.

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Items 0084-0110   [Box 1 F6]

0084-00

Messersmith, G.S., Berlin. To Harry L. Fried, New York City., 1932 December 19   [Box 1 F6]

Typed Letter Copy, 1 p.

Thanks Fried for letter and clipping.

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0085-00

Mitchell, P.V.G., New York City. To G.S. Messersmith, Berlin., 1932 December 19   [Box 1 F6]

Typed Letter Signed, 1 p.

Lacks enclosure. Encloses clipping from Journal of Commerce of Dec. 15 with further comments [on the Einstein Affair ?].

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0086-00

Fullerton, Hugh S., Lyon. To G.S. Messersmith., 1932 December 20   [Box 1 F6]

Typed Letter Signed, 1 p.

Thinks it fortunate that Messersmith's connections protected him from the attacks [in the Einstein case]; deems Lippmann's retraction very unsatisfactory; has moved into a modern house with central heating; invites Mr. and Mrs. Messersmith to visit.

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0087-00

Messersmith, G.S., Berlin. To [Hickman Powell], [New York City]., 1932 December 20   [Box 1 F6]

Typed Letter Copy, 6 p.

Thanks Powell for his letter to the Herald Tribune; explains what happened in the Einstein case; discusses possible cancellation of debts of European countries, but believes the course unwise; has hopes for the new administration.

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0088-00

Skinner, Robert P., Riga. To G.S. Messersmith, Berlin., 1932 December 20   [Box 1 F6]

Typed Letter Signed, 2 p.

Acknowledges Messersmith's letter and is glad to have the facts of the Einstein incident, but he had never doubted that Professor and Mrs. Einstein had received anything but considerate treatment; is depressed to realize how irresponsible the press can be.

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0089-00

Avegno, J.B., Antwerp. To G.S. Messersmith, Berlin., 1932 December 21   [Box 1 F6]

Typed Letter Signed, 1 p.

Encloses various clippings re the Einstein incident; discusses political situation in Belgium and particularly in Antwerp.

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0090-00

Cutting from The Nation., 1932 December 21   [Box 1 F6]

1 col., mounted. Retracts earlier criticism of Consul General Messersmith for his handling of the Einstein visa case, but shifts the blame to the State Department for compelling its consuls to cross-examine applicants for visas on their political views.

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0091-00

Messersmith, G.S., Berlin. To Ernest L. Harris, Vienna., 1932 December 22   [Box 1 F6]

Typed Letter Copy, 2 p.

Thanks Harris for his New Year wishes; hopes to drive to Vienna and Budapest soon; comments on Einstein affair; was all embroidery on the part of Mrs. Einstein, and the newspapers used the incident to attack the U.S. visa practice.

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0092-00

Press cutting from the Chicago Daily Tribune. Editorial., 1932 December 22   [Box 1 F6]

1 col., mounted. 4 copies. Suggests that Einstein, in spite of his great achievements, has human frailties; "The protest to the State Department [by the Woman Patriot Corporation] may have been silly, but Dr. Einstein's naiveté had provoked it and he was not being subjected to a special indignity.

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0093-00

Messersmith, G.S., Berlin. To J.B. Avegno, Antwerp., 1932 December 23   [Box 1 F6]

Typed Letter Copy, 2 p.

Thanks Avegno and the American Club in Antwerp for their telegram to the Secretary of State; discusses unreliability of newspaper reporting.

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0094-00

Messersmith, G.S., Berlin. To Shelby P. Strother, Brooklyn., 1932 December 24   [Box 1 F6]

Typed Letter Copy, 1 p.

Thanks Strother for letter and clippings on the Einstein case; Einstein was asked none of the silly questions reported by the newspaper.

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0095-00

Messersmith, G.S., Berlin. To [J.B. Avegno], Antwerp., 1932 December 27   [Box 1 F6]

Typed Letter Copy, 2 p.

Is grateful to Avegno and the American Club in Antwerp; thanks Avegno for informing him about the political situation in Belgium; is particularly interested in the Burgomaster of Antwerp.

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0096-00

Messersmith, G.S., Berlin. To Andrew Fletcher, New York City., 1932 December 27   [Box 1 F6]

Typed Letter Copy, 5 p.

Thanks Fletcher for his card; recounts the Einstein case from its beginnings and discusses several implications concerning it; believes U.S. immigration laws and visa practice the most liberal in the world; is interested in the new administration and what it will do with regard to international problems.

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0097-00

Messersmith, G.S., Berlin. To Hampson Gary, New York City., 1932 December 27   [Box 1 F6]

Typed Letter Copy, 5 p.

Acknowledges Gary's letter and the clipping of Walter Lippmann's retraction in the Einstein case; states the facts in the case; discusses U.S. Consular offices in general; believes U.S. more liberal than most countries in their immigration laws and visa practices; has hopes for the new administration and believes Roosevelt will be definite in international matters.

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0098-00

Messersmith, G.S., Berlin. To Oswald Villard, New York City., 1932 December 27   [Box 1 F6]

Typed Letter Copy, 4 p.

Thanks Villard for sending copies of Nation and for his treatment of the Einstein case; discusses U.S. immigration laws and visa practices and compares them with those of other countries; believes U.S. most liberal; assures Villard that foreigners who visit American Consulates receive more considerate treatment than Americans are likely to receive at foreign consulates.

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0099-00

Messersmith, G.S., Berlin. To P.V.G. Mitchell, New York City., 1932 December 28   [Box 1 F6]

Typed Letter Copy, 4 p.

Thanks Mitchell for his support in the Einstein case and comments on character of Einstein; discusses the difficulty of doing all the entertaining expected of him on his income.

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0100-00

Brown, Milton M., Antwerp. To G.S. Messersmith, Berlin., 1932 December 29   [Box 1 F6]

Typed Letter Signed, 1 p.

Twits Messersmith on the Einstein incident; "as he himself [Einstein]has told us, everything is relative, and so I took it that you had only been relatively disagreeable and nasty to an extent which he only relatively deserved... may it be a lesson to you never again to say things in Berlin when you are in Breslau."

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0101-00

Messersmith, G.S., Berlin. To Mrs. Ruth Shipley, Washington, D.C., 1932 December 30   [Box 1 F6]

Typed Letter Copy, 11 p.

Apologizes for having sent telegram to her and [Allen T.] Klots in code; considers as stupid and unnecessary the telegram from Department advising Consul to check with Department before granting visa to Einstein; these instructions caused the delay in granting the visa during which time the Einsteins were interviewed by newspapermen; this, plus fact that the Consulate could give no information to the press, caused all the trouble; is grateful to Mrs. Shipley and Mr. Klots for their part in bringing the matter to the attention of the Secretary and for his prompt action; discusses possibilities for new personnel in the State Department and need for reorganization of the Department.

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0102-00

Messersmith, G.S., Berlin. To James E. McKenna, Washington, D.C., 1932 December 31   [Box 1 F6]

Typed Letter Copy, 3 p.

Thanks McKenna for his letter telling of the way his telegrams to [Allen T.] Klots and Mrs. [Ruth] Shipley were routed; believes that if the State Department's telegram to his Consulate regarding Einstein had not so restricted them, all of the Einstein unpleasantness might have been avoided; complains of procedures in the State Department and hopes that some of them may be corrected under the Roosevelt administration.

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0103-00

Press cutting, undated, from the Daily Mirror., 1932 December [?]   [Box 1 F6]

1 col., mounted. Walter Winchell On Broadway; sympathizes with Messersmith in his unjust treatment by the newspapers.

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0104-00

Press cutting, undated, from Every Evening, Wilmington, Del., 1932 December [?]   [Box 1 F6]

1 col., mounted. George S. Messersmith, formerly of Delaware, is exonerated in Einstein incident.

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0105-00

Translated article from "Der Tag.", [1932 December ?]   [Box 1 F6]

Typed Copy, 1 p.

Affirms that Messersmith is held in highest regard; assumes that "when Einstein appeared before the Consular officials he answered questions put to him honestly and stated candidly that he was an anarchist and an expert in propaganda..."

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0106-00

Press cutting from Every Evening, Wilmington, Delaware. Editorial., [1932 December ?]   [Box 1 F6]

1 col., mounted. Messersmith obviously acting under instructions from Washington in quiz of Einstein; comments on Messersmith's rapid advancement in the Consular Service and on his former residence in Delaware.

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0107-00

Presscutting, undated, from an unidentified newspaper., [1932 December ?]   [Box 1 F6]

3 items mounted on 1 leaf. Free-thinkers of America assail Messersmith in grill of Einstein and urge his dismissal; Einstein sails, hoping quiz incident is closed; American Berlin groups defend Messersmith.

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0108-00

Clipping from undated and unidentified publication., [1932 December ?]   [Box 1 F6]

1 p.

Series of six cartoons depicts foreign celebrities being questioned at U.S. Consulates.

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0109-00

Messersmith, G.S., Berlin. To P.V.G. Mitchell, New York City., 1933 January 03   [Box 1 F6]

Typed Letter Copy, 1 p.

Thanks Mitchell for editorial clipped from Journal of Commerce; thinks it a sensible article; is pleased that recent editorial comment concerning the Einstein incident has been fair, but realizes that first impressions often stick; deplores the wrong impression given of U.S. visa practice.

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0110-00

Messersmith, G.S., Berlin. To Milton [M. Brown], [Antwerp]., 1933 January 03   [Box 1 F6]

Typed Letter Copy, 2 p.

Extends New Year greetings; appreciates the telegram sent by the Club [American Club in Antwerp ?] to the State Department; believes facts in the Einstein affair now understood in U.S., but thinks the incident may have cast unfortunate doubt on U.S. visa practice; Einstein in Germany not considered the big man he is in America.

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Items 0111-0124   [Box 1 F7]

0111-00

Swope, Mrs. Mary H., New York City. To G.S. Messersmith, Berlin., 1933 January 03   [Box 1 F7]

Typed Letter Signed, 1 p.

Apologizes for the vote of censure passed by a group of citizens meeting at her house; is glad to learn he was not responsible for the Einstein incident.

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0112-00

Carr, Wilbur Jr., Washington, D.C. To G.S. Messersmith, Berlin., 1933 January 04   [Box 1 F7]

Typed Letter Signed, 2 p.

Believes Messersmith and his staff handled the Einstein incident with good judgment; is pained by the hostile attitude of the press in the U.S.

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0113-00

Messersmith, G.S., Berlin. To Louis G. Dreyfus, Jr., Copenhagen., 1933 January 05   [Box 1 F7]

Typed Letter Copy, 3 p.

Entertained 24 people, most the official family, at dinner on Christmas evening; Einstein incident seems to have been cleared up; recent editorial comment good; still concerned about effects of the incident on U.S. visa practice; appreciates clippings from the Santa Barbara Press and the Los Angeles Times.

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0114-00

Messersmith, G.S., Berlin. To Max Jordan, Basel, Switzerland., 1933 January 05   [Box 1 F7]

Typed Letter Copy, 2 p.

Thanks Jordan for sending the issue of "Commonweal" containing the editorial on the Einstein incident; thinks it a sensible article and wishes to know who wrote it; knows of no other incident given so much publicity and with so large a percent of it without foundation.

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0115-00

Cutting from The Nation. Letter to the Editors., 1933 January 11   [Box 1 F7]

1 col. Congratulates Nation for pointing out that Messersmith was misrepresented in Einstein affair; a pity that newspapers did not take the trouble to find out the facts; Messersmith regarded by Germans as "best type of foreign representative in Berlin." Signed Harvey M. Watts.

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0116-00

Messersmith, G.S., Berlin. To Mrs. Mary H. Swope, New York City., 1933 January 18   [Box 1 F7]

Typed Letter Copy, 2 p.

Thanks Mrs. Swope for her letter of apology; assures her that Einstein was received courteously by [Raymond] Geist at the U.S. Consulate.

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0117-00

Messersmith, G.S., Berlin., 1933 January 25   [Box 1 F7]

Typed Document, 1 p.

Memorandum on disposition of letters and clippings relating to the Einstein case; since most of these were personal letters or came to him in a personal way, Messersmith decided to keep them in his personal file, rather than the official file.

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0118-00

Messersmith, G.S., Berlin. Despatch No. 1184 to the Secretary of State [Cordell Hull], Washington, D.C., 1933 March 14   [Box 1 F7]

Typed Document Copy, 14 p.

Reports molestation of American citizens in Berlin by persons wearing uniform of National Socialist Party; police took no action; brought matter before highest authority at Foreign Office; was assured such acts would be curbed.

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0119-00

Messersmith, G.S., Berlin. Despatch No. 1187 to the Secretary of State [Cordell Hull], Washington., 1933 March 14   [Box 1 F7]

Typed Document Copy, 7 p.

Gives further information concerning attacks on American citizens in Berlin by persons wearing uniforms of National Socialist Party.

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0120-00

Messersmith, G.S., Berlin. Despatch No. 1188 to the Secretary of State [Cordell Hull], Washington., 1933 March 14   [Box 1 F7]

Typed Document Copy, 8 p.

Ministry for Public Enlightenment and Propaganda established in Germany; [Paul] Joseph Goebbels announced as minister; Goebbels capable, intelligent, effective speaker; will have authority over education, press, and radio; plans to broadcast propaganda to U.S.

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0121-00

Messersmith, G.S., Berlin. To Wilbur J. Carr, Washington., 1933 March 17   [Box 1 F7]

Typed Letter Copy, 13 p.

Appreciates work of Carr and the Secretary of State in clearing up the Einstein affair; discusses cut in rent allowances for foreign service officers and the hardship faced by some of them; cost of living varies from country to country; foreign service officers unlike business or professional men must maintain a certain standard of living and can save little; they should not therefore be subjected to the same compensation cuts; suggests consolidation of Chancery and Consulate in all capitals as an economical and administratively sound measure; believes offices of Commercial Attaches should be closed as they serve little purpose.

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0122-00

Messersmith, G.S., Berlin. Despatch No. 1195 to the Secretary of State [Cordell Hull], Washington., 1933 March 21   [Box 1 F7]

Typed Document Copy, 8 p.

Dr. [Paul Joseph] Goebbels gave press interview as to aims of his Ministry; all possible means of propaganda, press, radio, films, theater, public education to be under his Ministry; he is quoted, "Our task is to prepare a propaganda program through which eventually the whole of the people will be drawn to our side;" no criticism of government to be allowed; only a subservient press will be tolerated; daily radio broadcasts to U.S. include music and news in English and German; broadcasts short wave and not likely to reach many listeners.

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0123-00

Messersmith, G.S., Berlin. Despatch No. 1196 to Secretary of State [Cordell Hull], Washington., 1933 March 21   [Box 1 F7]

Typed Document Copy, 8 p.

Attacks on the persons of Jews have ceased on direct order of Hitler and Goering, who were sensitive to unfavorable publicity outside Germany; Jews holding public office dismissed; in Breslau, Jewish lawyers prohibited from appearing in Breslau courts; Jewish directors of State and Municipal theaters have been dismissed; one of best known conductors, Bruno Walter has been displaced; many leading physicians and scientists are Jews holding responsible positions in hospitals and scientific institutes; movement expected against them in near future; intimidation of Jews engaged in business already apparent.

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0124-00

Messersmith, G.S., Berlin. Despatch No. 1198 to Secretary of State [Cordell Hull], Washington., 1933 March 21   [Box 1 F7]

Typed Document Copy, 10 p.

Dr. [Hjalmar] Schacht appointed President of Reichsbank, succeeding Dr. [Hans] Luther; government wishes to start public works program to relieve unemployment, and at the same time to reduce taxes; issue of more paper money, already insufficiently covered by gold, only way to pay for program; Luther opposed measures as inflationary; Schacht doubtless opposed measures, but wanted a place of prominence and might be more flexible; Schacht hopes to reduce cost of government through reorganization, and to secure reduction of interest on German debts; U.S. creditors may be affected; Luther, no National Socialist, appointed Ambassador to U.S., probably with interest reduction in mind.

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Items 0125-0138   [Box 1 F8]

0125-00

Messersmith, G.S., Berlin. Despatch No. 1205 to Secretary of State [Cordell Hull], Washington., 1933 March 25   [Box 1 F8]

Typed Document Copy, 23 p.

Enclosure: See No. 126. Physical attacks on Jews ceased, but displacement from public, professional, and business positions continues; government aware of effect on public sentiment in other countries; Hitler thought to be more moderately anti-Jewish than Goering; [George] Norlin, exchange professor at University of Berlin, called, disturbed because he was being pressured to sign a telegram to Royal S. Copeland, U.S. Senate; statements in telegram contrary to fact; telegram intended to counteract adverse publicity in U.S.; copy enclosed.

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0126-00

Cablegram to Royal S. Copeland, U.S. Senate, Washington., 1933 March   [Box 1 F8]

Typed Document Copy, 1 p.

Enclosed with No. 125. Purports to state "real situation" with regard alleged assaults against Jews in Germany and requests Copeland communicate statement to press agencies; cablegram signed by five German citizens and endorsed by three others, at least two of whom are Jews.

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0127-00

Messersmith, G.S., Berlin. Despatch No. 1208 to Secretary of State [Cordell Hull], Washington., 1933 March 28   [Box 1 F8]

Typed Document Copy, 9 p.

Woolworth and other chain and department stores in Germany harassed by uniformed members of National Socialist Party; stores picketed and some ordered closed; Minister of Interior Goering ordered that interference with business cease, but S.A. police undisciplined.

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0128-00

Messersmith, G.S., Berlin. Despatch No. 1210 to Secretary of State [Cordell Hull], Washington., 1933 March 28   [Box 1 F8]

Typed Document Copy, 11 p.

Conservative members of National Socialist Party trying to influence their leaders to moderation in the anti-Jewish movement; they fear unfavorable effect upon Party and government of too rapid action; some party leaders agree, but younger party members eager for action and not easily controlled; real situation cannot be learned from German press which is strictly controlled; statements made even by Jewish leaders cannot always be credited, for they may be under pressure, or in fear of losing life or property; small shopkeepers and bankers so far only Jewish businesses unmolested; government and Party leaders realize dangers inherent in interfering with financial structure.

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0129-00

Translation of editorial from "Der Ancrieff"., 1933 March 28   [Box 1 F8]

Typed Document Copy, 3 p.

Lies regarding alleged German persecution of Jews being spread abroad; Jews responsible for all Germany's troubles in the years since the war; they have heretofore been spared, but time has come to attack; threatens that if attempt is made to boycott German goods abroad, no Jew will find any occupation, no one will buy from Jews, and Jewish newspapers will no longer be read.

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0130-00

Messersmith, G.S., Berlin. Despatch No. 1202 to Secretary of State [Cordell Hull], Washington., 1933 March 31   [Box 1 F8]

Typed Document Copy, 10 p.

Julian Fuks, American citizen residing in Berlin, attacked in night club operated by his wife, an Austrian citizen; Fuks victim of second attack; Messersmith called on Police Vice President, Dr. Mosle, who promised prompt action; police notified him following afternoon that four of the offenders had been arrested and arraigned and that two, one an S.A. man, were being held in custody for trial; newspaper correspondents who had learned of incident, anxious to give it publicity, but at Messersmith's request, refrained from sending out story until they could be given report of police action.

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0131-00

Messersmith, G.S., Berlin. Despatch No. 1214 to Secretary of State [Cordell Hull], Washington., 1933 March 31   [Box 1 F8]

Typed Document Copy, 19 p.

Practically all Jews now eliminated from public office; a few, indispensable because of special knowledge, still in Finance Ministry; most Jewish judges removed; no Jews allowed on governing board of lawyers associations, and few admitted to practice; Jewish physicians connected with state or municipal hospitals relieved of duty; boycott of Jewish firms, physicians, and lawyers ordered for April 1, ostensibly as defense measure against adverse criticism of Germany in foreign press, on the ground that stories were instigated by Jews abroad; some Jews, under pressure, sending out telegrams stating conditions normal in Germany; Dr. [Alfred] Bergmann of the Dresden Bank holding conferences with representatives of American banks in Berlin, tried to influence them to send out statements giving incorrect picture of situation; orders issued within last hour to employers to discharge immediately all Jewish employees; Dr. Abraham Frowein, leading industrial figure in Germany and President of International Chamber of Commerce, called; says all discipline gone and that Germany's whole political, financial, and industrial structure in jeopardy; believes Hitler might, if properly approached, be made to see reason and call off boycott; he would, however, be opposed by Goering and Goebbels; suggests U.S. Ambassador call on Hitler; many Jews have left country within last two days.

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0132-00

Reinecke, August, Osterwieck, Germany. To [Isaac] Kahn, Berlin., 1933 April 02   [Box 1 F8]

Typed Letter Copy, 2 p.

In German with English Translation. Enclosed with No. 152. Accuses Kahn of making improper deductions in payments [for leather goods] purchased for his American firm; threatens bodily harm unless entire amount is paid by April 6.

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0133-00

Messersmith, G.S., Berlin. Despatch No. 1216 to Secretary of State [Cordell Hull], Washington., 1933 April 03   [Box 1 F8]

Typed Document Copy, 21 p.

Boycott of Jewish business and Jewish professional men called off after one day, but may resume; order for discharge of Jewish employees stands; day of boycott quiet in Berlin, but some violence reported in other German cities; boycott not generally popular with German people, but everybody afraid to express opinions; German press completely controlled and tells people only what is acceptable to government and National Socialist Party; persecution of Jews continues.

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0134-00

Beitz, William E., Consulate General, Berlin. Memorandum concerning boycott of Jewish stores on April 1., 1933 April 03   [Box 1 F8]

Typed Document Copy, 3 p.

Walked with Consul [Casimir] Zawadzki through main business section of Berlin on April 1; boycott seemed poorly organized; not all Jewish establishments were picketed; some customers walked past pickets into the stores; store windows and doors had posters urging Germans not to buy from Jews; larger Jewish department stores remained closed all day; streets crowded with curious sightseers, but orderly.

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0135-00

Messersmith, G.S., Berlin. Memorandum of conversation with Reichsminister [Hermann] Goering., 1933 April 05   [Box 1 F8]

Typed Document Copy, 11 p.

Enclosed with No. 136. At Goering's invitation, Messersmith called on him at Air Ministry on April 4; before accepting invitation, emphasized that visit was personal and unofficial and must not be publicized; was cordially received; Goering asked about U.S. Diplomatic and Consular Service; was surprised to learn many men made it a lifetime career; had supposed they were removed from office with every change of government; mentioned anti-German propaganda in U.S.; Messersmith replied that American press, unlike German, was not controlled by government, and correspondents substantiated stories they sent out of Germany; Goering felt U.S. placed too much emphasis on problems of individuals and ignored fact that Germany had just come through a bloodless revolution; Messersmith agreed that Americans were concerned about individuals, but what concerned them more was the wholesale persecution of the Jews; Goering asked if there wasn't discrimination against Jews in U.S., and Messersmith replied that there was some social discrimination, but in business, professions, and before the law, Jews enjoyed same rights and privileges as other citizens; Messersmith mentioned removal of Jewish judges in Germany and felt that Americans would hesitate to invest money in Germany if they thought they could not get justice in the courts; Goering asked what Germany should do, and Messersmith replied that it was not in his province to advise officially on an interior problem, but that if Germany expects to build up her economy, she needs the good will of the world, and should be sensitive to public opinion outside Germany; Goering strong, intelligent and well-informed on some subjects but "naive as a child" on others.

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0136-00

Messersmith, G.S., Berlin. To the Secretary of State [Cordell Hull], Washington., 1933 April 06   [Box 1 F8]

Typed Letter Copy, 1 p.

Enclosure: See No. 135. note transmitting memorandum of conversation between Messersmith and Reichsminister Hermann Goering.

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0137-00

Reinecke, August, Osterwieck, Germany. To [Isaac] Kahn, Berlin., 1933 April 06   [Box 1 F8]

Typed Letter Copy, 2 p.

In German with English translation. Enclosed with No. 152. Threatens Kahn a second time; says neither police nor American Consulate can protect him; gives him until April 8 to pay.

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0138-00

Reinecke, August, Osterwieck, Germany. To American Consulate, Berlin., 1933 April 06   [Box 1 F8]

Typed Letter Copy, 3 p.

In German. Enclosed with No. 152. Informed by police that complaint about him had been made by Consulate; gives details of his business transactions with [Isaac] Kahn.

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Items 0139-0150   [Box 2 F9]

0139-00

Messersmith, G.S., Berlin. Despatch No. 1221 to Secretary of State [Cordell Hull, Washington., 1933 April 06   [Box 2 F9]

Typed Document Copy, 8 p.

Reports further cases of molestation of American citizens in Germany; S.A. or Stahlhelm made arrests, in many cases for no apparent reason; seized passports; some victims, held two or three days, not permitted to communicate with Consulate.

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0140-00

Messersmith, G.S., Berlin. Despatch No. 1222 to Secretary of State [Cordell Hull], Washington., 1933 April 07   [Box 2 F9]

Typed Document Copy, 7 p.

In addition to removing Jews from positions in government and the professions, National Socialists also removing non-Jews who oppose their movement; Jews who have been converted to Christianity not exempt; even a trace of Jewish blood makes them a target; many Jews leaving Germany, but few applying for American visas; most prefer to go to neighboring countries such as Holland or Switzerland to await developments and be near the property which they have left behind.

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0141-00

Messersmith, G.S., Berlin. Despatch No. 1230 to Secretary of State [Cordell Hull], Washington., 1933 April 10   [Box 2 F9]

Typed Document Copy, 5 p.

Reports further on Ministry for Public Enlightenment and Propaganda; Ministry composed of seven divisions - I. Administration, II. Propaganda, III. Radio, IV. Press, V. Moving Pictures, VI. Theater, and VII. Public Education; Ministry, under [Paul Joseph] Goebbels most active of Ministries since accession to power of National Socialist Party; has been clear, decisive, effective in everything it has done in the month since its establishment; censorship complete; impossible for even intelligent German to get any idea of foreign reaction to what goes on in Germany; when asked how long this control would continue, Goebbels replied, "until it has achieved its object - that of making every German a National Socialist."

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0142-00

Messersmith, G.S., Berlin. Despatch No. 1231 to Secretary of State [Cordell Hull], Washington., 1933 April 10   [Box 2 F9]

Typed Document Copy, 12 p.

Dual government in Germany - (1) the legal and constitutional government and (2) extra legal government of National Socialist Party organization; extra legal government seems the stronger of the two and influences acts of legal government; situation creates problem in protection of interests of American citizens and firms; Foreign Service Officers must deal with the legally constituted government rather than the Party organization and it is obvious that government officials are taking orders from Party.

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0143-00

Messersmith, G.S., Berlin. Despatch No. 1232 to Secretary of State [Cordell Hull], Washington., 1933 April 11   [Box 2 F9]

Typed Document Copy, 7 p.

Reports on probable policy of Reichsbank; Dr. [Hjalmar] Schacht re-emphasizes his intention of maintaining mark at parity; 70 million dollar rediscount credit of Reichsbank being repaid for ostensible reason that relieving bank of interest charge also relieves its foreign exchange situation; Schacht insists Germany must pay all her private obligations, but implies he doesn't consider loans under Dawes and Young Plan as private loans; probably first step will be to secure reduction of interest charges on short and long term foreign loans and credits and eventually a reduction in the capital sum of the loans and credits; basic attitude of German government unfavorable to foreign capital and business; moratorium will probably be declared on payment of interest on foreign debt; gold cover of mark only 11 percent; real gold cover has been Germany's export surplus, but export surplus steadily decreasing; [Hans] Luther chosen Ambassador to U.S. as best person to negotiate for interest and loan reduction; Luther respected in U.S. and known to be a man of high principles; German government income decreasing while expenditures increase; long promised measures involving large expenditures cannot be much longer delayed; Schacht hopes by decreasing foreign payments, by accumulating marks in Germany, and expanding credit structure to provide necessary money without issuing currency which might endanger the Mark.

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0144-00

Messersmith, G.S., Berlin. Despatch No. 1233 to Secretary of State [Cordell Hull], Washington., 1933 April 11   [Box 2 F9]

Typed Document Copy, 12 p.

Enclosure: See No. 145. Reports efforts to protect American business interests threatened by Nazi discriminatory measures; American owned firms in Germany advised they could not sell products in Germany; other American owned firms received forms to be filled in stating (1) they are purely German firms, (2) are not owned exclusively or principally by foreigners or Jews, and (3) company not founded on Marxist principles; if forms not acceptably filled in, public works will not be allowed to buy from them; acts are clearly violation of treaty rights of American owned firms, discussed problem with Dr. Bang, Staatssekretaer and head of Ministry of Commerce, who agreed treaty rights had been violated and promised to do all in his power to bring about satisfactory adjustment; Dr. Bang suggested that if matter were brought to attention of office of the Chancellor, it would facilitate the action he might take; action against foreign firms result of Nazi Party orders and minister could not, on his own, rescind them.

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0145-00

[1933 April]   [Box 2 F9]

Typed Document Copy, 2 p.

Enclosed with No. 144. Forms sent to American owned firms in Germany.

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0146-00

Messersmith, G.S., Berlin. Despatch No. 1234 to Secretary of State [Cordell Hull], Washington., 1933 April 11   [Box 2 F9]

Typed Document Copy, 10 p.

Dr. [Moritz] Bonn forced to resign as Rector of Handele-Hochschule; Party intervention in business and business organizations continues; Party members assigned to sit with governing boards of Cologne Chamber of Commerce and Reichsverband der Deutschen Industrie, the principal organization of German industry; individual Party leaders giving orders to business and demanding removal of government officials without authority, from any central source; Jews still being removed from educational institutions and hospitals; Jewish lawyers now faring somewhat better; Berlin Bar Association favors a quota system; [Wilhelm] Furtwaengler, Berlin orchestra director wrote to Goebbels protesting dismissal of such artists as Bruno Walter, Otto Klemperer, and [Max] Reinhardt; Goebbels agreed that every real artist must be given free field in Germany; Reichswehr [regular army and navy] regards military aspects of National Socialists with disdain and oppose incorporating S.A. and S.S. into their ranks; Reichswehr conservative and cool; same situation exists between regular police force and Party police.

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0147-00

Moffat, J. Pierrepont, Washington. To G.S. Messersmith, Berlin., 1933 April 12   [Box 2 F9]

Typed Letter Signed, 1 p.

Recent dispatches on the situation in Germany with respect to the Jews have been very helpful; the Department [of State] is settling down to its new organization, but is handicapped by insufficiency of higher officials.

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0148-00

Messersmith, G.S., Berlin. Despatch No. 1243 to Secretary of State [Cordell Hull], Washington., 1933 April 18   [Box 2 F9]

Typed Document Copy, 15 p.

Enclosure: See No. 149. Burroughs Adding Machine Company and National Cash Register Company, American owned companies in Germany, have received forms from various municipalities and public utilities; form is a declaration that the company is (1) purely German firm, (2) not entirely or mainly owned by foreigners or Jews, and (3) not based on "Marxistic" principles; called at Ministry of Commerce to protest these further discriminatory actions; in absence of Dr. [Paul] Bang, talked with Dr. [Wilhelm] Posse, Ministerial Director; asked Posse what had been done about his earlier protests; Posse replied that Bang had taken the matter to the offices of Hitler and Goering, and that he would do so again; recognized acts as violation of treaty rights and assured Messersmith requirement of declarations not based on official orders of German government; photographers of Associated Press prohibited from taking pictures of Tempelhof Flying Field or at the "Auswaertige Presse" reception of the Chancellor; protested to City authorities who promised to see what could be done.

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0149-00

1933 April   [Box 2 F9]

Typed Document Copy, 1 p.

Enclosed with No. 148. Declaration to be filled out by American owned firms in Germany; in German, with English translation.

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0150-00

1933 April 18 April 21   [Box 2 F9]

Typed Document Copy, 1 p.

Enclosed with No. 159. Translation of two items from German newspapers, one dealing with special bathing hours for Jews and the other with political and Jewish prisoners.

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Items 0151-0160   [Box 2 F10]

0151-00

Messersmith, G.S., Berlin. Despatch No. 1244 to Secretary of State [Cordell Hull], Washington., 1933 April 19   [Box 2 F10]

Typed Document Copy, 14 p.

Physical attacks on Jews still being reported though rarely in the press; one Jew in Munich severely beaten and later died of injuries; another, in Chemnitz, arrested and his body found two days later, shot through the head; an American citizen, Isaac Kahn, a Jewish representative of a St. Louis firm, received two extortion letters, threatening him with bodily harm if he didn't pay; matter reported to Consulate and then to police; police promised protection, but seemed unwilling or powerless to act; Kahn, fearing for his safety, left Germany; political prisoners, other than Jews confined in concentration camps and allegedly mistreated; Dr. Lehr, Oberburgomaster of Dusseldorf, arrested and jailed; Von Bismarck removed from office of staatssekretaer in Ministry of Interior; purge of universities continues, not only of Jewish professors, but of those not in sympathy with government; number of Jewish students admitted is restricted; Professor James Franck, a leading physicist and Nobel Prize winner, resigned from University of Goettingen in protest, though he could no doubt have retained his position because of his worldwide reputation; special chair created for [Albert] Einstein had limited his activities to scientific field, he would not now be seeking a post abroad; Christian students from America generally welcome in all German universities, but Jewish students not permitted to register; according to article in "Der Stuermer" America now dominated by Jews.

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0152-00

Messersmith, G.S., Berlin. Despatch No. 1245 to Secretary of State [Cordell Hull], Washington., 1933 April 19   [Box 2 F10]

Typed Document Copy, 9 p.

Enclosures: See Nos. 132, 137, and 138. Reports in detail case of Isaac Kahn, mentioned in No. 151; police assured Kahn of protection, but appeared powerless to act; encloses copies of August Reinecke's letters to Kahn and to the Consulate.

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0153-00

Messersmith, G.S., Berlin. Despatch No. 1252 to Secretary of State [Cordell Hull], Washington., 1933 April 25   [Box 2 F10]

Typed Document Copy, 20 p.

Whatever develops in economic and financial situation in Germany is bound to have repercussions on economy of rest of the world; leaders of German government have no real economic program; in bid for power, leaders promised lower taxes, greater employment, aid to small business by taxing big business out of existence, and elimination of foreign competition; they have been advised that they cannot meet these promises without endangering whole economy; pressure from Party members to effect the changes promised causing increasing disturbance.

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0154-00

Messersmith, G.S., Berlin. To J. Pierrepont Moffat, Washington., 1933 April 25   [Box 2 F10]

Typed Letter Copy, 4 p.

Calls to Moffat's attention several recent dispatches to the Department of State; thinks [Hans] Luther, German Ambassador in Washington, a servile government instrument; comments on the militaristic spirit prevalent over all Germany.

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0155-00

Messersmith, G.S., Berlin. Despatch No. 1267 to Secretary of State [Cordell Hull], Washington., 1933 April 28   [Box 2 F10]

Typed Document Copy, 5 p.

At recent cabinet meeting, according to reliable informant, project presented for increasing Germany's military efficiency; manufacture of war materials increasing; evidence of much drilling and target practice all over Germany; German government declares it wants peace, but one senses she wants peace only to have time to strengthen her position.

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0156-00

Messersmith, G.S., Berlin. Despatch No. 1273 to Secretary of State [Cordell Hull], Washington., 1933 May 02   [Box 2 F10]

Typed Document Copy, 10 p.

Interference with treaty rights of American firms in Germany continues; matter brought to attention of Goering, who gave assurance of favorable action; if discrimination continues intervention by State Department may become necessary; placing of Kommisars in business firms by Party leaders now forbidden except when authorized by liaison staff of Party in Berlin.

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0157-00

[Birchall, F.T.], [Berlin]. Cable report to New York Times News Bureau., 1933 May 03   [Box 2 F10]

Typed Document Copy, 1 p.

Enclosed with No. 150. Complaint that American Consulate in Berlin failed to afford protection to American citizens against Nazi persecution not in accord with facts; both Consulate and Embassy spare no efforts to afford full protection to all American citizens who have sought it.

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0158-00

[Birchall, F.T.], [Berlin]. To Edwin L. James. New York., 1933 May 03   [Box 2 F10]

Typed Letter Copy, 1 p.

Enclosed with No. 160. Allegation of discourteous treatment at American Consulate baseless; more such stories likely; requests James to verify stories before printing them.

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0159-00

Messersmith, G.S., Berlin. Despatch No. 1282 to Secretary of State [Cordell Hull], Washington., 1933 May 04   [Box 2 F10]

Typed Document Copy, 10 p.

Enclosure: See No. 150. Hitler and Goering now realize effects both at home and abroad of anti-Jewish movement and are inclined to moderate their persecution, but Goebbels remains adamant; secondary leaders and the masses as anti-Jewish as ever, no Jewish judges remain, few Jewish lawyers permitted to practice, Jews excluded from performing arts, and Jewish professors in Universities given "leave of absence"; Rector of University of Berlin, who is non-Jewish, removed because he objected to placing on bulletin board by students the so-called "12 theses against the non-German spirit," which included vicious statements against Jews; students in all German universities planning celebration for May 10, including monster bonfire in which Jewish books would be burned.

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0160-00

Messersmith, G.S., Berlin. Despatch No. 1284 to Secretary of State [Cordell Hull], Washington., 1933 May 05   [Box 2 F10]

Typed Document Copy, 6 p.

2 enclosures: Nos. 157, 158. Acknowledges Departments memorandum with reference to alleged treatment of two American citizens, Alexander Adler and Morris Sonders, Jews, who had been arrested and briefly detained in Berlin; calls attention to earlier dispatches in which complete report of the case was given; article in Jewish Daily Bulletin quotes men as saying they called at the Consulate immediately after release, that Consul declined to accept their affidavit, and that his attitude was unfriendly; statements in article completely false; encloses copies of cabled report from F.T. Birchall, New York Times representative in Germany, to his paper and a letter from Birchall to Edwin L. James, Managing Editor.

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Items 0161-0173   [Box 2 F11]

0161-00

Messersmith, G.S., Berlin. Memorandum of conversation with [Paul Joseph] Goebbels., 1933 May 05   [Box 2 F11]

Typed Document Copy, 2 p.

Enclosed with No. 166. Explained to Goebbels steps Embassy and Consulate had taken with respect to discrimination against American owned firms in Germany and requested definite answer as to what would be done to correct situation; Goebbels assured him matter would be satisfactorily adjusted; Goebbels cool and reserved.

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0162-00

Messersmith, G.S., Berlin. Despatch No. 1286 to Secretary of State [Cordell Hull], Washington., 1933 May 06   [Box 2 F11]

Typed Document Copy, 7 p.

Students organization's plans for public bonfires and burning of Jewish, un-German, and Marxistic books going forward; plan not government sponsored, but authorities are not interfering; student organizations, backed by Nazi Party, powerful and in complete control of universities; university authorities who oppose students are immediately replaced.

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0163-00

Messersmith, G.S., Berlin. Memorandum of visit from Mr. E. Maax, director of Nationale Radiator Gesselschaft., 1933 May 08   [Box 2 F11]

Typed Document Copy, 2 p.

Enclosed with No. 166. Reports conversation between Maax and Dr. Sohns, head of Kampfbund fuer den Gewerblichen Mittelstand; Maax had explained to Sohns that his company was entirely American owned and Sohns replied that the company would then be excluded from competing to supply departments of the Reich, states, municipalities and public utilities even though their products were manufactured in Germany; Sohns further informed him that the Kampfbund was publishing a book listing "purely German firms" from which goods might be purchased, and that Maax's firm would not be listed.

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0164-00

Messersmith, G.S., Berlin. Despatch No. 1292 to Secretary of State [Cordell Hull], Washington., 1933 May 09   [Box 2 F11]

Typed Document Copy, 9 p.

Press announced Hitler in his May 1 speech would proclaim long-awaited economic program, but speech was devoted to generalities and covered nothing new about the economic program; apparently no real program exists; Nazi Party took over trade unions May 2; unions had been powerful element in German life, with large sums of money at their disposal; compulsory labor service for nineteen year olds to begin January. 1, 1934; some evidence labor camps will become centers for military training.

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0165-00

Messersmith, G.S., Berlin. Despatch No. 1295 to Secretary of State [Cordell Hull], Washington., 1933 May 09   [Box 2 F11]

Typed Document Copy, 10 p.

Effort is made by the masses, trade organizations, and various organized groups to force radical action which leaders of Party, now more moderate, do not wish to carry out; Hitler is quoted, "No one in Germany wants war... thought of overseas expansion of Germany has been given up... large fortunes must disappear and unearned incomes cut... aid to unemployed must be substituted by earned wages..."; situation full of anomalies; immediately after declaration against big business, another declaration was made - "All interference in business must be stopped;" impossible to predict what will develop.

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0166-00

Messersmith, G.S., Berlin. Despatch No. 1296 to Secretary of State [Cordell Hull], Washington., 1933 May 09   [Box 2 F11]

Typed Document Copy, 12 p.

2 enclosures: See Nos. 161 and 163. Treaty rights of American owned firms in Germany still being violated; Consulate has complained to Ministry of Commerce (Dr. [Paul] Bang and Dr. [Wilhelm] Posse), to Ministry of Interior (Goering) and to Ministry of Propaganda (Goebbels), and was assured in each case that discriminatory action against American firms would be stopped; discriminatory orders issued by Party rather than legal government, but government seems powerless to countermand them; E. Maax, director general of Nationale Radiator Company, called; reported conversation with Dr. Sohn, head of Kampfbund, who informed him that his organization would shortly issue book listing all purely German firms from which departments of states and municipalities, and public owned utilities would be permitted to buy; since Maax's firm is American owned it will not be listed; Consulate and Embassy have done everything possible; if situation not soon corrected, State Department should make formal and vigorous representation to Foreign Office.

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0167-00

Phillips, William, Undersecretary of State, Washington. To G.S. Messersmith, Berlin., 1933 May 10   [Box 2 F11]

Typed Letter Copy, 1 p.

Commends Messersmith and [G.A.] Gordon, Counselor of Berlin Embassy, for the dispatches covering the situation in Germany; attention to German affairs has been stimulated by visit of Dr. [Hjalmar] Schacht; realizes the conditions under which Foreign Service Officers are working and assures Messersmith that the Department, and especially Mr. [Wilbur J.] Carr will do everything possible to alleviate the burden.

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0168-00

Bang, [Paul], Berlin. To G.S. Messersmith, Berlin., 1933 May 10   [Box 2 F11]

Typed Letter Copy, 1 p.

(In German) Got in touch with Militant Association for Middleclass Trades, which agreed to confer with Ministry of Commerce before issuing proposed list of sources of supply; will thereby be able to protect justified American interests.

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0169-00

1933 May 10   [Box 2 F11]

English translation of preceding entry.

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0170-00

Messersmith, G.S., Berlin. Despatch No. 1300 to Secretary of State [Cordell Hull], Washington., 1933 May 11   [Box 2 F11]

Typed Document Copy, 3 p.

Reports arrest of two American citizens; Herbert Baer, residing in Karlsruhe with wife, arrested and imprisoned; neither wife nor lawyer can learn cause of arrest; Samuel Pliskin, student at Heidelberg, arrested and detained on charges that he "may have been disseminating cruelty propaganda"; American Consul at Stuttgart protested to Baden State authorities, but without results; on appeal from Stuttgart, sent [Raymond] Geist to Ministry of the Interior of the Reich in Berlin; Geist was assured Ministry would telephone Baden State authorities and the two men would be released at once unless there was some serious and definite charge against them.

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0171-00

Messersmith, G.S., Berlin. Despatch No. 1301 to Secretary of State [Cordell Hull], Washington., 1933 May 12   [Box 2 F11]

Typed Document Copy, 10 p.

Enclosure: See Nos. 168 and 169. Violation of treaty rights of American firms in Germany to be stopped; intervention by Department probably not necessary; letter from Dr. [Paul] Bang, Ministry of Commerce, informs instructions have been issued to Kampfbund des Gewerblichen Mittelstandes [Militant Association for Middle Class Trades] to stop publication of list of approved sources of supply; activities against foreign firms and capital come from so-called "Kampfbunde", militant organizations of various groups in German industry; visited Dr. [Erhard] Milch, aide to Goering, and was told that Goering disapproved these activities and it was likely some of the Kampfbunde would be dissolved; leaders now feel strong enough to take action against some of their own Party members when they get out of line.

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0172-00

Messersmith, G.S., Berlin. Despatch No. 1303 to Secretary of State [Cordell Hull], Washington., 1933 May 12   [Box 2 F11]

Typed Document Copy, 16 p.

American newspaper correspondents in Germany find it difficult to send out news; several have aroused wrath of German government; [Edward] Deuss, of International News Service, accused of sending out unsubstantiated stories of cruelty and would be allowed to remain in Germany only if I.N.S. published in U.S. certain statements; I.N.S. preferred to transfer Deuss to London rather than retract; Edgar Mowrer, President of Association of Foreign Press Correspondents in Berlin, is in difficulty because book he wrote not pleasing to present government as well as his accounts of what had been happening recently in Germany; meeting sought between Goebbels and Mowrer to iron out difficulties; [H.R.] Knickerbocker of New York Evening Post and Philadelphia Public Ledger aroused resentment of government because of series of articles on Germany's economy; [Kurt ?] Leudecke, immediate subordinate of Foreign Minister, [Alfred] Rosenberg, during absence of Rosenberg in London, sent telegram to Philadelphia Public Ledger demanding Knickerbocker's recall; newspapers refused to recall him; Knickerbocker called on [Ernst T.] Hanfstaengl, head of Hitler's Press Bureau who immediately telephoned Goebbels; Goebbels agreed that such action by Foreign Ministry improper and Knickerbocker should not be interfered with; Leudecke arrested and jailed for having assumed too much authority; real authority in Germany lies with Goering, Goebbels, and Hitler, who have learned that though public opinion may be controlled in Germany, it cannot be controlled abroad; Alfred Rosenberg, as Foreign Minister, and HjalMarch Schacht, of Finance, now visiting in U.S., have no authority to speak for German government.

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0173-00

Messersmith, G.S., Berlin. Despatch No. 1305 to Secretary of State [Cordell Hull], Washington., 1933 May 12   [Box 2 F11]

Typed Document Copy, 11 p.

Foreign minister appointed Hans Draeger to study anti-German propaganda in foreign countries; Hitler announced establishment of foundation to provide funds to families of workers who lost lives in pursuance of their duties; called on public for contributions; Goebbels had planned to go to Chicago ostensibly for opening of Chicago Fair, but real reason to make propaganda speeches in U.S.; no mention of the trip in newspapers recently; may have been advised not to go, for of all members of present government he would be least likely to get sympathetic hearing in U.S.; burning of Jewish and Marxist books carried out as planned by university students; well-known Jews removed from positions - Professor Borchardt, director of Surgical Division of Moabit Hospital, Dr. [Fritz] Haber, head of Kaiser-Wilhelm Institute for Physical Chemistry and Nobel Prize winner, Oskar von Miller, head of Deutsches Museum in Munich, Max Liebermann, dean of German painters and honorary president of Prussian Academy of Fine Arts, and many leading authors from the Academy of Writers; many suicides among Jews; concentration camps for political prisoners increasing as arrests increase, and add further drain of government funds; Dr. Robert Ley has organized the "Deutsche Arbeitsfront," a central organization of all workers of all occupations; membership in National Socialist Party greatly increased; to get or hold job in Germany it is almost mandatory to be Party member; government and Party leaders now exercising greater authority over individual members.

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Items 0174-0190   [Box 2 F12]

0174-00

German National Socialist Labor Party, Berlin. to Nationale Radiator Gesellschaft m. b. H., Berlin., 1933 May 15   [Box 2 F12]

Typed Letter Copy, 1 p.

(In German). Enclosed with Nos. 176 and 181. Informs that Party considers firm as a German undertaking.

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0175-00

1933 May 15   [Box 2 F12]

Enclosed with Nos. 176 and 181. English translation of preceding entry.

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0176-00

Maax, E., Berlin. To G.S. Messersmith, Berlin., 1933 May 16   [Box 2 F12]

Typed Letter Copy, 1 p.

Enclosure: See No. 174. Transmitting copy of letter to Nationale Radiator Gesellschaft from German National Socialist Labor Party.

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0177-00

German National Socialist Labor Party, Berlin. To National Cash Register Company, Berlin., 1933 May 17   [Box 2 F12]

Typed Letter Copy, 1 p.

(In German). Enclosed with Nos. 179 and 181. Informs Company that it will be considered and treated as a German firm.

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0178-00

1933 May 17   [Box 2 F12]

Enclosed with Nos. 179 and 181. English translation of preceding entry.

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0179-00

Burman, R.W., Berlin. To G.S. Messersmith, Berlin.   [Box 2 F12]

Typed Letter Copy, 1 p.

Enclosures: See Nos. 177 and 178. Transmitting copy of letter to National Cash Register Company from German National Socialist Labor Party.

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0180-00

Messersmith, G.S., Berlin. To [J. Pierrepont] Moffat, Washington., 1933 May 20   [Box 2 F12]

Typed Letter Copy, 6 p.

Has had interview with [Hermann W.] Goering re American correspondents in Berlin, particularly [Hubert Renfro] Knickerbocker; is concerned with protection of person and property of Americans, particularly Jews, in Germany; believes his protests have had good effects, but thinks Germany will remain a troubled spot for a long time; is happy to go to the Vienna meeting of the International Chamber of Commerce.

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0181-00

Messersmith, G.S., Berlin. Despatch No. 1322 to Secretary of State [Cordell Hull], Washington., 1933 May 22   [Box 2 F12]

Typed Document Copy, 6 p.

Enclosures: Nos. 174-179. Both the Nationale Radiator Gesellschaft and the National Cash Register Company have received letters from headquarters of the National Socialist Party, designating them as "pure German firms"; the Kampfound des gewerblichen Mittelstandes was informed by Party heads that if it continued to interfere with American owned German firms it would be dissolved; firms with Jews on Board of Directors may be pressured to remove them; but no law as yet against Jews on Board, and firms advised not to submit to pressure.

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0182-00

Messersmith, G.S., Berlin. To Wilbur J. Carr, Washington., 1933 May 22   [Box 2 F12]

Typed Letter Copy, 5 p.

Thanks Carr for taking care of Mr. [Frans] Van Cauwelaert while he was in Washington; possible cabinet crisis in Belgium may place Van Cauwelaert in Premiership; is grateful for Carr's efforts to alleviate financial burdens of Foreign Service officers; is glad to go to the Vienna meeting of the International Chamber of Commerce; [Raymond] Geist has been helpful; he is a splendid officer who must receive adequate recognition; hopes the President's reorganization program will go through soon; thinks saving could be effected by closing most of the Commercial Attachés' offices, as they serve no useful purpose.

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0183-00

Messersmith, G.S., Berlin. Despatch No. 1321 to Secretary of State [Cordell Hull], Washington., 1933 May 22   [Box 2 F12]

Typed Document Copy, 4 p.

Daily short wave broadcasts under direction of Ministry of propaganda being made, aimed principally at U.S.; Doug Brinkley, American citizen, hired by Ministry to make broadcasts; inquired of Brinkley whether he prepared broadcasts or they were prepared for him; Brinkley replied that he prepared them, but admitted they were "revised" before broadcasting; cautioned Brinkley not to send out false or misleading information regarding situation in Germany.

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0184-00

Messersmith, G.S., Berlin. Despatch No. 1326 to Secretary of State [Cordell Hull], Washington., 1933 May 22   [Box 2 F12]

Typed Document Copy, 6 p.

Reports arrest of Dr. Paul Kecakameti, a Hungarian citizen and a Jew, who had been employed by United Press in Berlin for six years; United Press applied to American Consulate for aid in obtaining his release; Consul [Raymond] Geist went to police and learned that police knew nothing about the arrest; police located and released Kecakameti within twenty-four hours; he had been arrested by S.A. on baseless charges.

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0185-00

Messersmith, G.S., Berlin. Despatch No. 1329 to Secretary of State [Cordell Hull], Washington., 1933 May 23   [Box 2 F12]

Typed Document Copy, 12 p.

Continued tendency of organizations of National Socialist Party to exercise control over private business; forcing Jews off boards of directors and out of management; government taking steps toward removing from business firms "Komissari" who had been placed there by local Party leaders without authorization; effort now being made to place Party men in supervisory or managerial position in many firms; German-Atlantic Cable Company, whose capital stock is almost entirely German owned, recently informed by postal authorities that Jews in managerial or supervisory positions must resign and be replaced by National Socialist-minded persons; Consulate General asked to intervene, but since Company not American owned could not do so; unofficially Consulate advised that no law prohibits Jews in such positions and company might try resisting the order; an American company made loan of six million dollars to a German holding company and to guarantee loan, German company deposited a part of the capital stock; competitors of the German company now charging that there are Jews in the organization; company proposed taking into the business as comanager or director a prominent National Socialist and voting power of majority of stock be placed in his hands; Messersmith advised lawyers for both German company and American lender that it would be unwise to place such voting power in hands of Party man; has been suggested to American owned companies that they deposit 54 percent of stock with Gold-Discount Bank or Reichsbank, giving bank the voting power of the stock; Messersmith advised against it.

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0186-00

Messersmith, G.S., Berlin. Despatch No. 1330 to Secretary of State [Cordell Hull], Washington., 1933 May 23   [Box 2 F12]

Typed Document Copy, 8 p.

Anti-Semitic movement somewhat moderated; leaders realize they made mistakes which have caused much adverse criticism abroad; some Jews now allowed in business; many Jewish Lawyers and doctors readmitted to practice; musicians and other performing artists gradually returning; in universities action against Jews as strong as ever and students practically in charge; Aryan professors who have shown opposition to students' arbitrary action find their positions into- lerable and resign, either voluntarily or under pressure; masses show no change in their anti-Jewish feeling and the position of all Jews in Germany remains precarious.

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0187-00

Memorandum of interview of Consul [John H.] Morgan and Dr. [Kurt Robert] Mattusch with Dr. Wienbeck, Commissioner for the Industrial Middle Classes., 1933 May 23   [Box 2 F12]

Typed Document Copy, 2 p.

Enclosed with No. 188. Wienbeck was asked about possibility of a comprehensive Middle Class law forecast by press; he replied that Ministry of Economics would make no single law covering all questions affecting Middle Classes but a number of individual laws would be enacted; one law prohibits premiums and another prohibits opening of new retail stores; leaders of the Kampfbund plan no drastic action against department stores or unit price stores; they realize too rapid elimination of these branches of trade would endanger economic system; when questioned about role of middle class in the National Socialist "Staendestaat" (organic state) Wienbeck stated question had no significance; workmen interested in wages, not ideology; thinks the "Fuehrer" idea in business may be carried too far.

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0188-00

Funk, Walter, Berlin. To G.S. Messersmith, Berlin., 1933 May 23   [Box 2 F12]

Typed Letter Copy, 1 p.

(In German). Enclosed with No. 207. Informs that Minister Goebbels has ordered that discrimination against and interference with free competition of American firms must stop.

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0189-00

Memorandum of interview by Dr. Mattusch of the Consulate staff with Dr. Sohns of the Kampfbund des gewerblichen Mittelstandes., 1933 May 24   [Box 2 F12]

Typed Document Copy, 2 p.

Enclosed with No. 188. Sohns sees greater danger to Kampfbund in its non-Nazi membership, which possibly adheres to old economic system; present task is to destroy individual trade organizations, thereby stamping out individualistic class interests; private initiative must be directed through legal channels; unauthorized action will be stopped; Sohns vigorously attacked Ministers Goering and Goebbels.

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0190-00

Messersmith, G.S., Berlin. Despatch No. 1334 to Secretary of State [Cordell Hull], Washington., 1933 May 24   [Box 2 F12]

Typed Document Copy, 6 p.

Enclosures: Nos. 187 and 189. Commissioner of Commerce, Dr. [Otto] Wagener, ordered all so-called "fighting organizations" (Kampfbuende) in the commercial field dissolved except the Kampfbund des gewerblichen Mittelstandes, which has been chief offender in interfering with business; Kampfbund will not give up its existence or aims without a struggle; Dr. Von Rintelen, its titular head has moderate views, but Dr. Sohns, the active head, is decidedly radical; Sohns at odds with Ministers Goering and Goebbels because they had countermanded his orders; leaders of the Party moderating their views on economic and other matters, but intermediate leaders and masses remain unchanged; encloses memoranda of interviews with Dr. Sohns and Dr. Wienbeck.

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Items 0191-0200   [Box 2 F13]

0191-00

Messersmith, G.S., Berlin. Despatch No. 1335 to Secretary of State [Cordell Hull], Washington., 1933 May 24   [Box 2 F13]

Typed Document Copy, 4 p.

Statement by Dr. [Walther] Ruppin, Komissar placed by government in Provincial Organization of Physicians, appeared in weekly publication of organization, and demanded complete separation of Jews from medical profession; calls Jew the incarnation of lying and deception; statement commented on and severely criticized in "Berliner Tageblatt" and "Deutsche Allgemeine Zeitung"; that newspapers could criticize the statement no indication of greater freedom of the press, but an indication that such extravagant statements no longer have approval of higher authorities; such statement prompted not by conviction that Jews are a danger to Germany, but by professional or business jealousy.

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0192-00

Carr, Wilbur J., Washington. T. G.S. Messersmith, Berlin., 1933 June 07   [Box 2 F13]

Typed Letter Copy, 1 p.

Acknowledges dispatches concerning economic and financial program of the German government; commends Messersmith and his staff for their valuable reports; also for the defense of American commercial interests in Germany.

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0193-00

Messersmith, G.S., Berlin. Despatch No. 1367 to Secretary of State [Cordell Hull], Washington., 1933 June 15   [Box 2 F13]

Typed Document Copy, 3 p.

Has been informed by reliable source that "Die Rote Fahne," principal publication of the Communist Party in Germany is appearing again daily and is circulating undercover; some discontent with the Government; it is as radical as any proposed by Communists; Hitler and Goering inclined toward moderation, but Goebbels does not follow them, and as he controls press has great influence.

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0194-00

Messersmith, G.S., Berlin. Despatch No. 1368 to Secretary of State [Cordell Hul]l, Washington., 1933 June 15   [Box 2 F13]

Typed Document Copy, 14 p.

Replies to telegram from State Department which asked for basis of claims of German treaty violation in the matter of American owned companies in Germany and advised to proceed cautiously; cites Articles I and XIII of treaty as basis of claim; consulted and had full approval of Embassy before taking action; did not make formal representation to Foreign Office, but talked informally to Minister of Commerce and Minister of Propaganda, both of whom agreed there had been treaty violations and promised that the discriminatory action against American owned companies should be stopped; they have kept promise.

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0195-00

Messersmith, G.S., Berlin. Despatch No. 1369 to Secretary of State [Cordell Hull], Washington., 1933 June 17   [Box 2 F13]

Typed Document Copy, 15 p.

Anti-Jewish movement continues though physical attacks have almost stopped; higher leaders of Party have not changed their views, but are aware of adverse criticism outside Germany and its possible effects upon German economy; mass of Nazis still violently antisemitic and unhappy over restraints imposed by leaders; in Berlin about half the Jewish lawyers have been readmitted to practice, but under such restrictions they are hampered in their practice, and no new Jewish lawyers admitted; no Jewish physicians left in official positions; physicians may continue private practice, but German people intimidated from using them. No new Jewish physicians licensed; Jewish professors excluded from universities; status of Jewish students not yet clear, but atmosphere is such Jewish student would find it intolerable; in the arts, Jewish performers are excluded, though the censored press announces they have been "invited" to other countries; the quality of the theater has deteriorated since the exclusions of the Jews; no publisher will publish anything written by a Jew; Jews excluded from competition in all sports; next Olympic Games to be held in Berlin; might suggest to Olympic Committee in U.S. that U.S. should not participate; the Jew in business and industry insecure; likely that government will take over banks, most of which are Jewish owned; and property will be confiscated; restrictions on departure from country make it impossible for well-to-do Jews to leave with any part of their capital; because of censorship, outside world knows little of the difficulties faced by the Jews in Germany.

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0196-00

Geist, Raymond H., Berlin., 1933 June 17   [Box 2 F13]

Typed Document Copy, 9 p.

Enclosed with No. 199. Memorandum on military sport as now being popularly developed in Germany; includes resumé of the military sport handbook in which the basic ideas are emphasized and the kinds of training listed.

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0197-00

Messersmith, G.S., Berlin. Despatch No. 1370 to Secretary of State [Cordell Hull], Washington., 1933 June 19   [Box 2 F13]

Typed Document Copy, 26 p.

Observations on political and economic situation in Germany; before coming into power leaders made promises to their followers which they cannot keep; leaders, under influence of responsibility, have become more moderate, but are being pressured by the intermediate leaders and the masses, who remain extremely radical; after March 5 Government placed Komissare in all departments and institutions, public and private, and in many of the major industries; local leaders, copying their superiors, placed Komissare in all businesses, large or small; young men of no ability or business experience, were often placed in charge of business establishments, with power to dismiss experienced employees and hire Party adherents who were often incompetent; primary leaders realized this practice was endangering Germany's economy and ordered it stopped, but it has not completely stopped; two managing directors of Saxon Public Works, both faithful and intelligent administrators, dismissed and replaced by two Komissare who had no knowledge of the business; inquiry into banking structure of country announced in today's newspaper; object obviously two-fold - to prepare way for Government takeover, and to uncover transactions which may give government excuse for confiscating property; Goebbels, in recent speech, said what has been done recently is only an overture to what will be done; difference of opinion has developed between Hitler and Goering on one side and Goebbels on the other; Goebbels has necessarily given in to the more moderate dictates of Hitler and Goering but he may be biding his time until he can consolidate his position; Goebbels ambitious, intelligent, and cunning, but completely unscrupulous and coldblooded; unemployment serious; industry cannot absorb additional labor under existing conditions; Chambers of Commerce, official organizations in Germany, being rapidly coordinated by National Socialist Party; formerly governed by responsible members of industrial and financial world, Chambers have been reorganized and placed under control of representatives of the Party; object of coordination is to remove opposition to any economic project of the Party; Party plans to finance itself by direct levy on business of 5 percent of total payroll; press continues to be servile; the few that have expressed any criticism of Government have been suppressed; Nazis attack Rotary Club because of its international character and because it admits Jews; Party leaders informed clubs that no member of a Rotary Club could be a member of the National Socialist Party; arrest of former government officials continues; Kampfbund des gewerblichen Mittelstandes determined to eliminate department stores; restaurant interests clamoring for law that would close restaurants and refreshment counters in department stores; other small businesses such as stationers, milliners, tailors will make similar demands; ruin of department stores will mean ruin also for scores of manufacturers who have been supplying them; Kampfbund has been compelled by primary leaders of Party to cease its discriminatory actions against foreign owned German businesses; to stimulate certain sections of industry, section II of law of June 1 provides that if replacement materials of such things as office supplies or agricultural equipment are purchased, and if the replacement is manufactured in Germany, the purchaser is relieved of taxation on the amount paid for the new equipment; this law conflicts with Article VIII of Treaty of Friendship, which treats of imported merchandise; Embassy is awaiting Department's instructions before making representations to Foreign Office; Germany in no position to speak in international conferences on economic or financial subjects; her own policy too uncertain and undeveloped, but headed in radical directions.

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0198-00

Messersmith, G.S., Berlin. To William Phillips, Undersecretary of State, Washington., 1933 June 20   [Box 2 F13]

Typed Letter Copy, 2 p.

Calls attention to dispatch No. 1369 of June 17 giving resumé of present status of social, economic, and political situation of Jews in Germany and to dispatch No. 1370 of June 19 covering major aspects of economic and political situation in Germany.

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0199-00

Messersmith, G.S., Berlin. Despatch No. 1383 to Secretary of State [Cordell Hull], Washington., 1933 June 22   [Box 2 F13]

Typed Document Copy, 4 p.

Enclosures: See No. 196. Transmitting a memorandum on the development of military sport in Germany; training of youth in the arts of war has been extended to embrace the S.A. and the S.S., the private army of the National Socialist Party, and other organizations such as Boy Scouts; movement a cause for alarm in other European nations; extreme nationalism prevails.

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0200-00

Messersmith, G.S., Berlin. Despatch No. 1387 to Secretary of State [Cordell Hull], Washington., 1933 June 23   [Box 2 F13]

Typed Document Copy, 8 p.

Difficulties experienced by German government in its program to reduce unemployment through public works, chiefly a series of highways; project would provide work for only small percent of unemployed and cost would be excessive; appendix dated June 24 reports Cabinet decided to organize separate company, Government Automobile Roads, which would operate as a subsidiary of the German Government Railway Company.

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Items 0201-0220   [Box 2 F14]

0201-00

Messersmith, G.S., Berlin. Despatch No. 1388 to Secretary of State [Cordell Hull], Washington., 1933 June 24   [Box 2 F14]

Typed Document Copy, 2 p.

From p. 2 to end missing. Alleged interest of National Socialist Party in so-called third party movement in U.S.

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0202-00

Messersmith, G.S., Berlin. Despatch No. 1390 to Secretary of State [Cordell Hull], Washington., 1933 June 24   [Box 2 F14]

Typed Document Copy, 4 p.

Use of signs "Deutsches Geschaeft" (German firm) authorized by National Socialist Party; German people urged to buy only German goods; signs to be issued to Aryan firms only.

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0203-00

Messersmith, G.S., Berlin. To William Phillips, Undersecretary of State, Washington., 1933 June 26   [Box 2 F14]

Typed Letter Copy, 6 p.

Regrets allowance for courier service cut out; unsafe to send confidential matter in usual locked pouches; German press recently reported foreign planes over Germany dropping Communist leaflets; story believed to be hoax originated by government in order to demand protection against air attack; political parties other than National Socialist have been eliminated; former leaders of other parties subject to attack and arrest; higher Nazi leaders inclined to be more moderate but intermediate leaders and masses more radical than ever and do not always obey orders from top; Hitler powerful but even he cannot control masses; Goebbels preaching that revolution has just begun; economic experimentation threatens big business, foreign capital, and large industrial establishments; impossible to talk of tariff or monetary matters with people who appear to be psychopaths.

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0204-00

Translation of article by Dr. Achim Gorcke, "The Solution of the Jewish Question," which appeared in the Voelkische Beobachter., 1933 June 26   [Box 2 F14]

Typed Document Copy, 3 p.

Enclosed with dispatch No. 305. Dr. Gorcke favors the legal measures restricting Jews, but asserts this is only first step; the final solution is to expel them all from Germany and resettle them somewhere else.

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0205-00

Messersmith, G.S., Berlin. To [Jay Pierrepont] Moffat, [Washington]., 1933 June 27   [Box 2 F14]

Typed Letter Copy, 3 p.

Situation in Germany growing from bad to worse in almost every field; suppression of all parties other than National Socialist; many arrests; action against Catholic Center and arrest of priests who have expressed their views; only few of former regime left in government; aim is probably to establish German National Church and bring it into National Socialist organization; intermediate leaders care nothing about foreign relations or foreign good feeling; their only concern is their extreme Nationalism.

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0206-00

Translation of interview by G.S. Messersmith which appeared in the Berliner Boersen Courier., 1933 July 02   [Box 2 F14]

Typed Document Copy, 3 p.

Enclosed with No. 229. Appeared as part of a series -"How Berlin Diplomats Understand their Mission"; aim of Consul General to extend good relations between U.S. and Germany to all provinces of public life; to accomplish his aim, he has traveled over Germany becoming acquainted with German people of all types.

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0207-00

Orloff, Walter, Greifswald, Germany. To American Consulate General, Berlin., 1933 July 04   [Box 2 F14]

Typed Letter Copy, 1 p.

Enclosed with No. 224. Has been arrested and held on alleged Communist activity; sympathizes with working class but has never been politically organized; is in good health and is well treated; asks that brother in Brooklyn be notified by cable.

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0208-00

Messersmith, G.S., Berlin. Despatch No. 1413 to Secretary of State [Cordell Hull], Washington., 1933 July 06   [Box 2 F14]

Typed Document Copy, 19 p.

Enclosure: See No. 188. Case of Deutsche Houghton Fabrik G.M.b.H., owned by E.F. Houghton & Co. of Philadelphia, identical with other cases already brought to Department's attention: state and municipalities not permitted to purchase from company because it is American owned; will try to get statement that the company is all-German; new Minister of Commerce, Dr. [Kurt] Schmitt, appointed; has reputation of being moderate in views; formal representation should be made to Foreign Office relative to law of June 1 which provides for tax exemptions on amounts spent for replacement of certain types of material if they are of German manufacture; law severe on American firms which export to Germany.

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0209-00

Diels, Rudolf, Secret Political Police, Berlin. To U.S. Consul General [G.S. Messersmith], Berlin., 1933 July 07   [Box 2 F14]

Typed Letter Copy, 1 p.

In German. Enclosed with No. 224. Reports on information received from police in Greifswald regarding charges against Walter Orloff; has sent copy of Messersmith's letter to Minister of Justice; suggests Messersmith get in touch with him.

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0210-00

1933 July 07   [Box 2 F14]

1 p.

Enclosed with No. 224. English translation of preceding entry.

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0211-00

Messersmith, G.S., Berlin. Despatch No. 1421 to Secretary of State [Cordell Hull], Washington., 1933 July 10   [Box 2 F14]

Typed Document Copy, 26 p.

Summary of recent developments in political, economic, social and industrial situation in Germany; individual and unauthorized action by intermediate Party and S.A. leaders continues to disturb business; open breeches of discipline numerous; Hitler, in speech before S.A. leaders, warned that offenders would be punished, no matter how highly placed in Party; in speech before Statthalter (personal representatives of Chancellor in various states) Hitler declared that all political parties had been abolished and the National Socialist Party is now the state; last of the parties to be dissolved was the Zentrum, which represented the conservative Catholic element; physical force of S.A. played part in dissolution of parties, but German people seemed docile; concordat with Vatican announced by press, but text of agreement not yet revealed; Protestant Churches now powerless before authorities; parliamentary government in Germany out as long as present regime remains in power; Reichstag probably will not even meet; government now consolidating its power; every important person who could be considered even a potential opponent of present government has been sent to concentration camp or prison; has been informed Hitler will shortly announce determination of Government to stop experiments in business and to use men of proven capacity in business whether they are National Socialists or not; several men of moderate views recently appointed to high office; Goebbels' influence apparently waning, but he will not be easy man to put aside; work on highways to be under direction German Railway System, which is in sound financial position and may be able to finance program out of its earnings; according to press, unemployment 1,200,000 less than Jan. 30, though figure probably exaggerated; recrudescence of movement against Jews in past two weeks; 30 Jewish physicians arrested on July 7 on charge that they were engaged in Marxistic propaganda; Germany making some progress in relations with outside world; close contact with Italy continues, way prepared for close economic and political cooperation with Hungary, extreme nationalism has alarming effect on trade.

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0212-00

Kimbara, R., Magdeburg-Buckau, Germany. To G.S. Messersmith, Berlin., 1933 July 11   [Box 2 F14]

Typed Letter Copy, 1 p.

Enclosed with No. 225. Reports that Dr. [Otto] Wagener, Government Commissioner for Business Economics, has requested German cities to drop all discrimination against foreign firms established in Germany.

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0213-00

Messersmith, G.S., Berlin. Despatch No. 1425 to Secretary of State [Cordell Hull], Washington., 1933 July 11   [Box 2 F14]

Typed Document Copy, 5 p.

Dr. Joseph Schachno, American citizen residing in Berlin, arrested and beaten by S.A. men; Consulate reported matter to police, who promised that offenders would be punished.

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0214-00

Messersmith, G.S., Berlin. Despatch No. 1439 to Secretary of State [Cordell Hull], Washington., 1933 July 18   [Box 2 F14]

Typed Document Copy, 14 p.

Dr. Joseph Schachno's citizenship doubtful; although born in U.S. he has on several occasions listed his citizenship as German and until he was attacked by S.A. men has shown no interest in returning to U.S.; believes Consulate justified in issuing passport to Schachno, but since American citizenship is in question, he is not entitled to American protection while in Germany.

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0215-00

Moffat, [Jay] Pierrepont, Washington. To G.S. Messersmith, Berlin., 1933 July 18   [Box 2 F14]

Typed Letter Signed, 2 p.

Thanks Messersmith for letter of June 27 which covered the ground fully; agrees with Messersmith's conclusions; got funds to provide courier service to Hamburg which will assure privacy of communications to Department but doubts inviolability of correspondence to Messersmith; fears German decree authorizing confiscation of private property of "enemies of the state"; could be used as retaliatory measure; [Rudolf] Leitner complaining of tone of American editorial comment and cartoons.

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0216-00

Messersmith, G.S., Berlin. Memorandum of conversation with Staatssekretaer [Franz] Schlegelberger, Acting Minister of Justice., 1933 July 21   [Box 2 F14]

Typed Document Copy, 5 p.

Enclosed with No. 223. Discusses case of Walter Orloff, American student at University of Greifswald who had been arrested and charged with treasonable activities; suggested to Schlegelberger that easiest solution would be to deport Orloff to U.S., but was told case had already been referred to central authorities at Leipzig and that the usual course of justice must be followed; mentioned the case of Philip Zuckerman, American citizen who had been badly beaten in Leipzig, and yet authorities had done nothing to apprehend the guilty parties; suggested American people would have low opinion of German justice.

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0217-00

Messersmith, G.S., Berlin. Memorandum of conversation with [Erhard] Milch, acting Minister of Air., 1933 July 21   [Box 2 F14]

Typed Document Copy, 2 p.

Enclosed with No. 223. Discussed attack on Philip Zuckerman; Milch said he realized action must be taken against the offenders, S.A. men or not, and that he would personally bring it to the attention of the Chancellor.

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0218-00

Messersmith, G.S., Berlin. Memorandum of conversation with [Ludwig] Grauert in Prussian Ministry of Interior., 1933 July 21   [Box 2 F14]

Typed Document Copy, 2 p.

Enclosed with No. 223. Brought to Grauert's attention the cases of Philip Zuckerman and Walter Orloff; Grauert reported meeting scheduled for next day between highest Prussian authorities and highest leaders of S.A. and it would be made clear S.A. men were not to consider themselves above the law and their illegal acts would be punished same as those of other law-breakers; Grauert thought the Orloff case regrettable and said he would do what he could to bring it to speedy conclusion, implying this meant the boy's deportation.

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0219-00

Messersmith, G.S., Berlin. Memorandum of conversation with Dr. Volk of the State Secret Police., 1933 July 21   [Box 2 F14]

Typed Document Copy, 1 p.

Enclosed with No. 223. Presented to Volk letter transmitting affidavit covering attack on Philip Zuckerman, and stressed necessity for immediate action; Volk stated Leipzig outside jurisdiction of his police but he would transmit affidavit to highest Saxony authorities with suggestion of immediate action.

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0220-00

Messersmith, G.S., Berlin. Memorandum on conversation with Dr. [Hans] Pfundtner of the Ministry of Interior., 1933 July 21   [Box 2 F14]

Typed Document Copy, 2 p.

Enclosed with No. 223. Called on Pfundtner to discuss cases of Philip Zuckerman and Walter Orloff; Pfundtner thought Zuckerman attack regrettable and offenders should be prosecuted; suggested Ambassador [William E. Dodd] should see Foreign Minister [Konstantin] von Neurath; in meantime, Pfundtner said he was competent to a certain degree in the matter and would do all he could to see that the attackers are brought to justice; he didn't think proceedings against Orloff could be dropped; told Pfundtner evidence against Orloff seemed very flimsy; believes he will also do what he can in that matter.

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Items 0221-0240   [Box 2 F15]

0221-00

Messersmith, G.S., Berlin. To William E. Dodd, Berlin., 1933 July 22   [Box 2 F15]

Typed Letter Copy, 2 p.

Enclosed with No. 223. After conversation with Dodd on evening of 21st left with him memoranda of conversations with Dr. [Franz] Schlegelberger and Dr. [Erhard] Milch; transmits herewith memoranda of interviews with Dr. [Hans] Pfundtner, Dr. [Ludwig] Grauert, and Dr. Volk; believes all are impressed with necessity for immediate action in bringing attackers of Philip Zuckerman to justice; if German authorities do not take appropriate action, believes U.S. Government, as matter of principle and for protection of other American citizens here, take energetic action.

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0222-00

Messersmith, G.S., Berlin. To Ralph C. Busser, Leipzig., 1933 July 25   [Box 2 F15]

Typed Letter Copy, 3 p.

According to Busser, Leipzig police have informed him they have not been able to identify attackers of Philip Zuckerman, and want to know if U.S. Government is satisfied; asks Busser to inform police U.S. is certain if proper investigation is made the culprits can be identified, and U.S. Government will not be satisfied until they are apprehended and brought to justice.

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0223-00

Messersmith, G.S., Berlin. Despatch No. 1454 to Secretary of State [Cordell Hull], Washington., 1933 July 26   [Box 2 F15]

Typed Document Copy, 8 p.

Reports on attack on Philip Zuckerman, naturalized American citizen in Leipzig; Leipzig police say they cannot identify offenders, a group of S.A. men; recommends that if no action is taken by German authorities in this case, formal representation be made by the State Department to the Foreign Office.

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0224-00

Messersmith, G.S., Berlin. Despatch No. 1453 to Secretary of State [Cordell Hull], Washington., 1933 July 26   [Box 2 F15]

Typed Document Copy, 8 p.

Enclosures: See Nos. 207, 209, and 210. Reports on the arrest of Walter Orloff, American student at the University of Greifswald because of alleged Communist activities; Consulate has taken appropriate action to have him released and returned to America.

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0225-00

Messersmith, G.S., Berlin. Despatch No. 1455 to Secretary of State [Cordell Hull], Washington., 1933 July 26   [Box 2 F15]

Typed Document Copy, 3 p.

Enclosure: See No. 212. Discriminatory action against Deutsche Houghton Fabrik, a subsidiary of E.F. Houghton & Company of Philadelphia, has ceased.

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0226-00

Messersmith, G.S., Berlin. Despatch No. 1460 to Secretary of State [Cordell Hull], Washington., 1933 July 27   [Box 2 F15]

Typed Document Copy, 7 p.

Investigation of the Consulate General on behalf of the Jewish Telegraph Agency; agency closed by German police because of alleged propaganda unfavorable to German government; after agreeing to change in editorship and declaring that no propaganda against German government would be issued in its bulletins, agency was permitted to function again.

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0227-00

Messersmith, G.S., Berlin. Despatch No. 1461 to Secretary of State [Cordell Hull], Washington., 1933 July 27   [Box 2 F15]

Typed Document Copy, 9 p.

Property, chiefly printing plant, of Watchtower Bible and Tract Society seized by police in Magdeburg on grounds that Society was engaged in subversive activities.

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0228-00

Messersmith, G.S., Berlin. Despatch No. 1463 to Secretary of State [Cordell Hull], Washington., 1933 July 28   [Box 2 F15]

Typed Document Copy, 14 p.

All Jews have been removed from German courts; a double system of justice prevails, one for Party adherents, and another for non-Party members; judicial decisions, in both civil and criminal cases, are influenced by bias rather than the merits of the individual case.

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0229-00

Messersmith, G.S., Berlin. Despatch No. 1464 to Secretary of State [Cordell Hull], Washington., 1933 July 28   [Box 2 F15]

Typed Document Copy, 2 p.

Enclosure: See No. 206. Transmits translation of interview by Messersmith which appeared in the Berliner Boersen Courier of July 2, 1933.

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0230-00

Memorandum of conversation on July 25 between Messersmith and [Walther] Funk at Ministry of Propaganda and Public Enlightenment., 1933 July 28   [Box 2 F15]

Typed Document Copy, 3 p.

Enclosed with No. 260. Among items called to attention of Funk were the closing of the Jewish Telegraph Agency by order of German Secret Police, the continued discriminatory action against American owned photographic firms in Germany, and the activities of [Douglas] Brinkley, an American citizen in Germany, passing himself off as a spokesman for the American people.

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0231-00

Messersmith, G.S., Berlin. Despatch No. 1465 to Secretary of State [Cordell Hull], Washington., 1933 July 29   [Box 2 F15]

Typed Document Copy, 5 p.

Extreme National Socialist newspapers refuse to accept advertising from foreign firms or from German firms which advertise in other newspapers.

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0232-00

Messersmith, G.S., Berlin. Despatch No. 1466 to Secretary of State [Cordell Hull], Washington., 1933 July 29   [Box 2 F15]

Typed Document Copy, 3 p.

All trains and automobiles in Germany were stopped and searched on July 25, ostensibly for concealed weapons, propaganda material, and indications of Communist activity; according to a rumor which cannot be verified, Premier [Engelbert] Dollfuss had received documents purporting to be evidence that Hitler was of Jewish origin; the documents had been published in Austrian and Swiss newspapers; the object of the search was to prevent any of these newspapers from coming into Germany.

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0233-00

Messersmith, G.S., Berlin. Despatch No. 1467 to Secretary of State [Cordell Hull], Washington., 1933 July 29   [Box 2 F15]

Typed Document Copy, 5 p.

Clippings missing. Transmitting clippings covering two articles from the "Berliner Tagblatt" of July 10 and July 27 covering statements of Lord Rothermere [Harold Sidney Harmsworth] and of Lord Parmoor [Charles Alfred Cripps] on the German situation; articles very favorable to Germany, but obviously to anyone who knows the situation they are not factual.

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0234-00

Messersmith, G.S., Berlin. Despatch No. 1468 to Secretary of State [Cordell Hull], Washington., 1933 July 29   [Box 2 F15]

Typed Document Copy, 2 p.

Clipping missing. Transmits clipping from "Berliner Boersen Zeitung" which reproduces parts of an article by Thomas St. John Gaffney which had appeared originally in the "American Observer"; article has aroused wide attention in Germany; makes Gaffney appear to German people as spokesman representing American sentiment.

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0235-00

Messersmith, G.S., Berlin. Despatch No. 1469 to Secretary of State [Cordell Hull], Washington., 1933 July 29   [Box 2 F15]

Typed Document Copy, 4 p.

Douglas Brinkley, American citizen in Germany, being used by German propaganda machine to make weekly short wave radio speeches to U.S.; Brinkley represented himself as having been connected with the National Broadcasting Company, but Company disavows him.

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0236-00

Messersmith, G.S., Berlin. Despatch No. 1470 to Secretary of State [Cordell Hull], Washington., 1933 July 29   [Box 2 F15]

Typed Document Copy, 5 p.

National Socialist Party attempts to spread its propaganda in other countries; hopes to organize National Socialist Parties in countries of Europe and America; according to speech by [Paul Joseph] Geobbels, within next few years five new universities will be founded in Germany to teach leaders of National Socialism.

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0237-00

Messersmith, G.S., Berlin. Despatch No. 1471 to Secretary of State [Cordell Hull], Washington., 1933 July 31   [Box 2 F15]

Typed Document Copy, 2 p.

Retaliatory measures taken against Communists in concentration camps because of mutilation of Hindenburg Oak which had been planted on May 1; no proof advanced that mutilation of oak was work of Communists.

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0238-00

Carr, Wilbur J., Washington. To G.S. Messersmith, Berlin., 1933 August 01   [Box 2 F15]

Typed Letter Copy, 1 p.

Thanks Messersmith for letters concerning immigration practice in Germany; congratulates him on his protection work; is concerned over the effect of the exchange situation upon Foreign Service Officers and over the relations of the State Department with the Department of Commerce; thinks both matters may be satisfactorily disposed of within a week.

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0239-00

Messersmith, G.S., Berlin. Despatch No. 1483 to Secretary of State [Cordell Hull], Washington., 1933 August 08   [Box 2 F15]

Typed Document Copy, 4 p.

All automobile clubs in Germany are to be consolidated into one organization under the control of the National Socialist Party.

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0240-00

Messersmith, G.S., Berlin. Despatch No. 1484 to Secretary of State [Cordell Hull], Washington., 1933 August 08   [Box 2 F15]

Typed Document Copy, 6 p.

Enclosure: Translation of "Horst Wessel-Lied". Hitler salute has become official and is given during the singing of "Deutschland Ueber Alles" and the "Horst Wessel-Lied"; salute usually accompanied by the words "Heil Hitler"; embarrassing to an official of another country to be received with a salute which he cannot return.

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Items 0241-0262   [Box 2 F16]

0241-00

Messersmith, G.S., Berlin. Despatch No. 1485 to Secretary of State [Cordell Hull], Washington., 1933 August 08   [Box 2 F16]

Typed Document Copy, 5 p.

Results attained by the Foundation for the Furtherance of National Work to which contributions have been solicited, said to be unsatisfactory; may be an indication that the stabler element of the population has little faith in the views of the government.

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0242-00

Messersmith, G.S., Berlin. Despatch No. 1486 to Secretary of State [Cordell Hull], Washington., 1933 August 08   [Box 2 F16]

Typed Document Copy, 7 p.

German authorities making effort to impress American visitors favorably; favorable comments quoted by press; group of American Boy Scouts entertained in Munich; U.S. Coast Guard Cadets entertained in Berlin, where many photographs showed them fraternizing with men in Nazi uniform.

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0243-00

Messersmith, G.S., Berlin. Despatch No. 1487 to Secretary of State [Cordell Hull], Washington., 1933 August 08   [Box 2 F16]

Typed Document Copy, 4 p.

National Socialist Party to sponsor lottery to provide funds for the creation of employment, a departure from professed National Socialist principles and an indication of desperation.

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0244-00

Messersmith, G.S., Berlin. Despatch No. 1494 to Secretary of State [Cordell Hull], Washington., 1933 August 08   [Box 2 F16]

Typed Document Copy, 4 p.

Many well known Germans have been arrested and placed in concentration camps for no apparent reason; Paul Loebe, former President of Reichstag in camp in Breslau; Fran Leudemann, wife of former Oberpraesident of Lower Silesia in same camp; Frau Rhoda Erdman, distinguished scientist in Polizei Praesidium in Berlin; Friederich Ebert, son of former President of Germany in camp at Breslau; Alfred Braun, Dr. Magnus, and Herr Giesecke, important officials of German radio system, arrested recently.

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0245-00

Messersmith, G.S., Berlin. Despatch No. 1488 to Secretary of State [Cordell Hull], Washington., 1933 August 09   [Box 2 F16]

Typed Document Copy, 4 p.

National Socialist newspapers continue to use unfair tactics to force other newspapers out of business, in spite of statements from Ministry of Commerce that unfair competition should cease.

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0246-00

Messersmith, G.S., Berlin. Despatch No. 1489 to Secretary of State [Cordell Hull], Washington., 1933 August 09   [Box 2 F16]

Typed Document Copy, 6 p.

The "Kampfbund fuer gewerblichen Mittelstand" has been dissolved and its functions incorporated in the "Deutscher Arbeitsfront;" the Kampfbund was a principal source of difficulty for American firms in Germany and its dissolution is a step in the right direction.

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0247-00

Messersmith, G.S., Berlin. Despatch No. 1496 to Secretary of State [Cordell Hull], Washington., 1933 August 09   [Box 2 F16]

Typed Document Copy, 4 p.

Enclosure: See No. 248. Attackers of Philip Zuckerman, naturalized American citizen in Leipzig, still at large; Leipzig police claim they cannot identify attackers; Zuckerman may have sustained permanent injuries; Mrs. Zuckerman lost baby as result of attack; U.S. government may find it advisable to ask for monetary compensation for Zuckerman.

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0248-00

Memorandum of conversation between Messersmith and Dr. [Hans] Pfundtner in the Ministry of the Interior., 1933 August 09   [Box 2 F16]

Typed Document Copy, 2 p.

Enclosed with No. 247. Messersmith impressed on Pfundtner the importance of apprehending and punishing the attackers of Philip Zuckerman; told Pfundtner the Leipzig police could or would do nothing without approval of S.A. leaders; Pfundtner agreed to get in touch with S.A. leader in Saxony.

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0249-00

Messersmith, G.S., Berlin. Despatch No. 1499 to Secretary of State [Cordell Hull], Washington., 1933 August 10   [Box 2 F16]

Typed Document Copy, 5 p.

Edgar Ansel Mowrer resigned as President of Foreign Press Association in Berlin; had been persona non grata because he reported the situation as he saw it in Germany, and authorities had demanded his resignation; association voted that he should not resign under pressure; several correspondents of German newspapers had been arrested in Vienna and to retaliate Dr. Paul Goldman, correspondent in Berlin for Vienna newspaper, was arrested; Mowrer offered to resign if Goldman was released and his offer was accepted; Mowrer to be reassigned to Tokyo.

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0250-00

Messersmith, G.S., Berlin. Despatch No. 1500 to Secretary of State [Cordell Hull], Washington., 1933 August 10   [Box 2 F16]

Typed Document Copy, 9 p.

Economic and general business situation in Germany somewhat improved; government becoming more moderate; Komissars placed by Party in businesses have been withdrawn; not so much emphasis placed on buying only German and Aryan goods; unemployment still serious.

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0251-00

Messersmith, G.S., Berlin. Despatch No. 1501 to Secretary of State [Cordell Hull], Washington., 1933 August 10   [Box 2 F16]

Typed Document Copy, 3 p.

Jews not to be excluded from Leipzig Fair as either buyers or exhibitors; Leipzig Fair has long tradition and has attained international stature; authorities fear for its future if Jews are excluded.

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0252-00

Messersmith, G.S., Berlin. Despatch No. 1503 to Secretary of State [Cordell Hull], Washington., 1933 August 11   [Box 2 F16]

Typed Document Copy, 2 p.

Incident of Frau [Rhoda] Erdman[n]'s arrest and release is related to show German officials now sensitive to public opinion outside Germany; Frau Erdmann released within an hour or two after Messersmith's telephone conversation with Dr. Volk, Chief of Secret Political Police.

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0253-00

Messersmith, G.S., Berlin. Despatch No. 1509 to Secretary of State [Cordell Hull], Washington., 1933 August 14   [Box 2 F16]

Typed Document Copy, 5 p.

Dr. E. Salzer and Dr. Fritz Simion, German patent lawyers, both Jews, have been disbarred; lawyers had been handling cases for American interests and their disbarment causing hardship for these interests; called on official at Patent office and on Chairman of Association of Patent Lawyers, but could get no commitment from them as to the reinstatement of the two lawyers.

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0254-00

[Messersmith, G.S.], Berlin. To Jay Pierrepont Moffat, Washington., 1933 August 14   [Box 2 F16]

Typed Letter Copy, 2 p.

Hopes Moffat had pleasant holiday; having hectic time; must be careful not to use bad judgment through pressure of individual cases; [Walter] Orloff case could have been serious, but managed to have him released from prison and deported to America; [Philip] Zuckerman case not yet settled; may be necessary to ask money damages on his behalf; has learned [Hans] Luther returning [to America as Ambassador] but doubts he will stay long.

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0255-00

Messersmith, G.S., Berlin. To William Phillips, Washington., 1933 August 14   [Box 2 F16]

Typed Letter Copy, 10 p.

Glad to know letters and dispatches have been helpful; [Raymond] Geist, right hand man at Consulate, a great help; growing realization among higher officials of German government that they cannot ignore opinions of outside world; isolation has already had bad economic effect; [Paul Joseph] Goebbels, in Hamburg speech in July, stated revolution just beginning; Hitler, on advice of business and financial leaders, called meeting of his representatives in each state and announced that revolution was ended and that counter-revolutionary or radical elements would be repressed without mercy; appointment of [Kurt] Schmitt as Minister of Commerce in place of [Alf] Hugenberg encouraging; Schmitt a first-class businessman who has not taken active part in Party matters; to satisfy radical wing of Party, Dr. [Gottfried] Feder appointed State Secretary in Commerce Ministry, but will be given little to do; Dr. [Wilhelm] Posse, old official of the Ministry and a fine man, retained as State Secretary also; the "Kampfbund des gewerblichen Mittelstandes", the organization causing so much trouble by interference with business, has been dissolved and its representatives in businesses and industries withdrawn, as have the Party-appointed or self-appointed Kommissars in business; newspapers announce great reduction in unemployment, but some government officials admit that figures published are incorrect; general economic situation bad; Hitler and associates not giving up radical ideas for moderation because they want to, but because circumstances force them to; tax receipts down; trade balance smaller each month; should exports shrink further, imports of raw materials will be difficult to finance, and standard of living will go down; no change in anti-Semitic campaign except there are not as many physical attacks on Jews; Hitler implacable on subject and would like to see Jews wiped out; Hitler also implacable on subject of Austria and Anschluss; if crisis in internal situation seems unavoidable, Chancellor may turn government into monarchy with Prince Louis Ferdinand as head.

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0256-00

Memorandum prepared by Raymond H. Geist regarding the trial of Oskar Joost and accomplices for assaulting Julian Fuhs, an American citizen., 1933 August 15   [Box 2 F16]

Typed Document Copy, 3 p.

Enclosed with No. 261. Trial was a travesty of justice; judge himself asked leading questions of Joost; only three witnesses were called, all of whom had obviously been coached; they mumbled their replies and were not cross-examined; prosecuting attorney made no effort to establish guilt; but recommended a sentence of one month; court retired to deliberate but returned after only seven minutes to pronounce sentence - a fine of 50 marks but no imprisonment.

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0257-00

[Moffat, J. Pierrepont ?], Washington. To G.S. Messersmith, Berlin., 1933 August 16   [Box 2 F16]

Typed Letter Signed "P.M.", 3 p.

Enclosure: See No. 258. Sending editorial clipped from Philadelphia Public Ledger; shows that Messersmith's excellent work is beginning to command public recognition.

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0258-00

Presscutting from the Philadelphia Public Ledger., 1933 August 16   [Box 2 F16]

1 p.

An American seaman is sentenced to six months imprisonment by German court for calling Hitler a Czech Jew; American Consulate General is investigating; Messersmith commended for his work in defending rights of American citizens in Germany.

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0259-00

1933 August 16   [Box 2 F16]

3 typed copies of preceding entry.

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0260-00

Messersmith, G.S., Berlin. Despatch No. 1514 to Secretary of State [Cordell Hull], Washington., 1933 August 18   [Box 2 F16]

Typed Document Copy, 3 p.

Enclosure: See No. 230. In spite of assurances from Ministry of Propaganda that discriminatory action against American owned German firms engaged in taking pictures at public functions would cease, firms are continuing to have difficulty; only one of the three firms given permit for each function; further protest is being made to the Ministry of Propaganda.

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0261-00

Messersmith, G.S., Berlin. Despatch No. 1515 to Secretary of State [Cordell Hull], Washington., 1933 August 18   [Box 2 F16]

Typed Document Copy, 4 p.

Enclosure: See No. 256. Justice not possible under present judicial procedure in Germany; cites cases of Walter Orloff, American student in Germany, who was arrested, charged with high treason, and imprisoned for a month before being deported, the only evidence being the denunciation by a known Communist, an American seaman arrested and sentenced to six months in prison for an alleged derogatory remark about Hitler, and the German, Oskar Joost, proved attacker of the American citizen, Julian Fuks, was fined 50 marks.

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0262-00

Memorandum of conversation between Consul Raymond H. Geist and Dr. Ludwig Grauert in the Prussian Ministry of Interior on Aug. 17., 1933 August 18   [Box 2 F16]

Typed Document Copy, 2 p.

Enclosed with No. 263. Geist emphasized necessity of having it generally understood throughout Reich the position of foreigners with regard to Hitler salute; Grauert assured Geist that he would take steps immediately to that effect.

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Items 0263-0282   [Box 3 F17]

0263-00

Messersmith, G.S., Berlin. Despatch No. 1520 to Secretary of State [Cordell Hull], Washington., 1933 August 19   [Box 3 F17]

Typed Document Copy, 8 p.

Enclosure: See No. 262. Dr. Daniel Mulvihill, American citizen in Berlin for study, was attacked on Aug. 15 by S.A. man while standing on sidewalk watching parade of S.A. men; Mulvihill's failure to give Hitler salute the only apparent reason for attack; [Raymond H.] Geist called on Dr. Volk of the State Secret Political Police and insisted that S.A. man be arrested and appropriately punished; on Aug. 18 Volk informed Consulate that guilty S.A. man had been arrested and turned over to judicial authorities; Geist also called on Aug. 19 at Prussian Ministry of Interior to inquire what orders had been given that foreigners in Germany are not expected to give or return Hitler salute, and was informed that such orders had already gone out; apparent that authorities wish to avoid offending Americans, but may not be able to control populace; may be necessary for U.S. government to issue general warning at home that Americans may not be safe in Germany.

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0264-00

Memorandum prepared by Consul Raymond H. Geist of visit to Stetlin in behalf of Torsten Johnson, American seaman imprisoned there., 1933 August 21   [Box 3 F17]

Typed Document Copy, 7 p.

Enclosed with No. 275. Cordially received by acting Police President; Secret Service man escorted him to prison where Johnson was held; impressed by Johnson's appearance; listened to his story and believed him innocent of the charge that he had said Hitler was a Czechoslovakian Jew; Johnson's knowledge of German was not good and it was likely that what he said about Hitler was misunderstood; he was also drinking at the time; visited the attorney who had been appointed to defend Johnson; learned that he had not talked to Johnson before the trial and that no attempt had been made to secure witnesses for the defense; realizes trial and conviction were result of political pressure; suggested to attorney and to prosecuting attorney that they recommend a pardon without delay which they agreed to do; reminded them that Americans held a low opinion of such summary treatment of its citizens by another country.

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0265-00

Messersmith, G.S., Berlin. Despatch No. 1521 to secretary of State [Cordell Hull], Washington., 1933 August 21   [Box 3 F17]

Typed Document Copy, 7 p. (2 versions of p. 6 & 7, essentially the same)

Reports discrimination action against American and foreign steamship lines in Germany; Ministry of Commerce issued decree which provided that any person buying passage from foreign steamship line cost of which exceeds 200 marks, must secure special permit from exchange control authorities; protests made by both British and American lines, and much newspaper publicity given to protests; at meeting of representative of lines affected at the Ministry of Commerce, it was announced that new decree, would be issued, which would satisfy all interests.

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0266-00

Messersmith, G.S., Berlin. Despatch No. 1525 to Secretary of State [Cordell Hull], Washington., 1933 August 22   [Box 3 F17]

Typed Document Copy, 2 p.

Met Thomas St. John Gaffney at Rotary Club luncheon several weeks ago, but unable to learn object of visit or present whereabouts in Germany; will inform Department if there are further developments.

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0267-00

Messersmith, G.S., Berlin. Despatch No. 1526 to Secretary of State [Cordell Hull], Washington., 1933 August 22   [Box 3 F17]

Typed Document Copy, 2 p.

Military training being given to German youth; even their playground sports are directed toward military exercise.

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0268-00

Messersmith, G.S., Berlin. Despatch No. 1531 to Secretary of State [Cordell Hull], Washington., 1933 August 23   [Box 3 F17]

Typed Document Copy, 5 p.

Discriminatory business practices sanctioned by National Socialist Party; Party members instructed to buy only from designated firms, excluding foreign and Jewish firms; the approved firms then pay a percentage of the purchase price into Party coffers.

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0269-00

Messersmith, G.S., Berlin. Despatch No. 1532 to Secretary of State [Cordell Hull], Washington., 1933 August 24   [Box 3 F17]

Typed Document Copy, 4 p.

Public declaration has been made that the Hitler salute is not expected from foreigners.

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0270-00

Messersmith, G.S., Berlin. Despatch No. 1537 to Secretary of State [Cordell Hull], Washington., 1933 August 24   [Box 3 F17]

Typed Document Copy, 5 p.

Anti-Semitic movement continues; new regulations and bans appear almost daily; Jews not admitted to public recreation areas; new law under consideration which would deprive Jews of citizenship; already deprived of means of livelihood, the new law will deny them any civil rights.

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0271-00

Messersmith, G.S., Berlin. Despatch No. 1539 to Secretary of State [Cordell Hull], Washington., 1933 August 25   [Box 3 F17]

Typed Document Copy, 3 p.

Explains why "Berliner Tageblatt" is quoted so frequently in his dispatches; since German press is completely censored, the same news items appear in practically all newspapers in identical form.

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0272-00

Messersmith, G.S., Berlin. Despatch No. 1542 to Secretary of State [Cordell Hull], Washington., 1933 August 25   [Box 3 F17]

Typed Document Copy, 6 p.

Gruppenfuehrer [ ]Von Detten called on Aug. 22 to express on behalf of the higher leadership of the S.A. the regrets that one of their members should have attacked the American citizen, Dr. Daniel Mulvihill; Messersmith accepted the apology graciously, but reminded von Detten of other attacks upon Americans and the fact that not one of the offenders had been punished.

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0273-00

Messersmith, G.S., Berlin. Despatch No. 1544 to Secretary of State [Cordell Hull], Washington., 1933 August 25   [Box 3 F17]

Typed Document Copy, 3 p.

German authorities making effort to establish order in business; Betriebszellenleiter in Thuringia arrested for failing to obey orders to cease interference in business.

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0274-00

Messersmith, G.S., Berlin. Despatch No. 1548 to Secretary of State [Cordell Hull], Washington., 1933 August 26   [Box 3 F17]

Typed Document Copy, 11 p.

Reports of foreign planes flying over Berlin dropping Communist leaflets a rumor deliberately started to rouse public sentiment for building air force in spite of treaty obligations.

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0275-00

Messersmith, G.S., Berlin. Despatch No. 1549 to Secretary of State [Cordell Hull], Washington., 1933 August 26   [Box 3 F17]

Typed Document Copy, 5 p.

Enclosure: See No. 264. Torsten Johnson, American seaman, arrested in Stettin, convicted, and sentenced to six months imprisonment for allegedly saying that Hitler was a Czechoslovakian Jew; Raymond H. Geist sent to Stettin to investigate; Geist's memorandum on subject enclosed.

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0276-00

Messersmith, G.S., Berlin. Despatch No. 1550 to Secretary of State [Cordell Hull], Washington., 1933 August 29   [Box 3 F17]

Typed Document Copy, 3 p.

Discriminatory action against American and foreign steamship lines eliminated by new decree requires steamship lines to make monthly report to authorities on number of passages sold and total income from passage money as well as amounts expended in Germany for operation and upkeep; officials of American lines say they will have no difficulty under new decree.

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0277-00

Messersmith, G.S., Berlin. Despatch No. 1551 to Secretary of State [Cordell Hull], Washington., 1933 August 29   [Box 3 F17]

Typed Document Copy, 2 p.

Harold P. Dahlquist, American temporarily in Germany, struck by S.A. man on street because he did not stop to watch S.A. parade or give Hitler salute; Consulate notifying authorities.

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0278-00

Resume of interview given by [Hjalmar] Schacht, President of Reichsbank to Berlin correspondent of Amsterdam newspaper., 1933 August 29   [Box 3 F17]

Typed Document Copy, 2 p.

Enclosed with No. 286. When asked whether anti-Semitic policy of present government would not create difficulties for Germany in her foreign relations as well as in her financial policy, Schacht replied that Germany would seek no foreign capital, but would build up her economy through her own efforts; insists that Germany will remain on gold standard.

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0279-00

Messersmith, G.S., Berlin. Despatch No. 1553 to Secretary of State [Cordell Hull], Washington., 1933 August 30   [Box 3 F17]

Typed Document Copy, 3 p.

Swiss citizen attacked by S.A. man on street in front of hotel; attack witnessed by American friend of Messersmith; Swiss was overheard saying to the hotel manager that his firm had bought half a million Swiss francs worth of goods a year in Germany, but that he was leaving immediately and never expected to return.

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0280-00

Messersmith, G.S., Berlin. Despatch No. 1554 to Secretary of State [Cordell Hull], Washington., 1933 August 30   [Box 3 F17]

Typed Document Copy, 3 p.

Unfair competition of National Socialist newspapers continues in spite of public declarations to the contrary; well-known German newspapers not owned by the Party or its members having difficulty, and only a matter of time before they will be forced to discontinue through lack of advertising and subscriptions.

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0281-00

Messersmith, G.S., Berlin. Despatch No. 1555 to Secretary of State [Cordell Hull], Washington., 1933 August 30   [Box 3 F17]

Typed Document Copy, 5 p.

Propaganda articles in German press giving wrong impression concerning U.S. immigration practice; articles state that American Consulate in Paris denies visas to Germans who apply for entrance to U.S. unless they supply evidence that they are permanent residents of Germany or submit certificate issued by German authorities stating that they are not political refugees; Consul General [Leo John] Keena in Paris denies such practice.

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0282-00

Messersmith, G.S., Berlin. Despatch No. 1556 to Secretary of State [Cordell Hull], Washington., 1933 August 30   [Box 3 F17]

Typed Document Copy, 6 p.

Preference given to members of National Socialist Party or to S.A. men in filling vacant or new positions in government and in business; Hitler, fearing business disorganization, has declared that competent, experienced men should not be removed to make places for the inexperienced and incompetent; in other respects movement for displacing non-Party members continues; informed by responsible member of government that leaders would like to have S.A. and S.S. men employed to get them off the streets and to give them something to think about other than marching and demonstrations.

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Items 0283-0290   [Box 3 F18]

0283-00

Messersmith, G.S., Berlin. Despatch No. 1559 to Secretary of State [Cordell Hull], Washington., 1933 August 31   [Box 3 F18]

Typed Document Copy, 1 p.

Enclosure: See No. 284. Transmitting memorandum on establishment of a United Protestant Church in Germany.

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0284-00

1933 [August]   [Box 3 F18]

Typed Document Copy, 16 p.

Enclosed with No. 283. Memorandum on the establishment of a United German Protestant Church and promulgation of its Constitution, prepared by Consul Raymond H. Geist.

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0285-00

Messersmith, G.S., Berlin. Despatch No. 1560 to Secretary of State [Cordell Hull], Washington., 1933 August 31   [Box 3 F18]

Typed Document Copy, 2 p.

Hakenkreuz placed on church tower at Mainbernheim in Bavaria; as Hakenkreuz is purely a party symbol, it is indication of close union which party is endeavoring to bring about between church and state.

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0286-00

Messersmith, G.S., Berlin. Despatch No. 1562 to Secretary of State [Cordell Hull], Washington., 1933 September 01   [Box 3 F18]

Typed Document Copy, 4 p.

Enclosure: See No. 278. Transmitting translation of resume of interview given by [Hjalmar] Schacht, President of the Reichsbank to Berlin correspondent of Amsterdam newspaper; Schacht outspoken and critical, but erred in his statement that Germany would seek no foreign capital.

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0287-00

Messersmith, G.S., Berlin. Despatch No. 1564 to Secretary of State [Cordell Hull], Washington., 1933 September 01   [Box 3 F18]

Typed Document Copy, 4 p.

Sixteen year old son of H. V. Kaltenborn, news editor for Columbia Broadcasting System, was walking with father, mother, and sister on Leipsiger Strasse in heart of Berlin when they saw a group of S.A. men marching down the street; stopped to look in shop window until procession passed; son suddenly seized from behind by civilian and struck in face; Kaltenborn did not report to police as he was fearful of leaving wife and daughter alone; since attacks upon Americans are continuing in spite of assurances by authorities they will be stopped, Department should consider warning Americans that they travel in Germany at their own risk.

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0288-00

[Billikopf, Jacob]. To Herbert [H. Lehman]., 1933 September 01   [Box 3 F18]

Typed Letter, 11 p.

Signature cropped. Visited Frankfurt, Berlin and Nürnberg; interviewed Ambassador [William E.] Dodd, G. S. Messersmith, H. R. Knickerbocker; describes plight of Jews in Germany; Jews reticent about atrocities for fear of retribution.

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0289-00

Messersmith, G.S., Berlin. Despatch No. 1565 to Secretary of State [Cordell Hull], Washington., 1933 September 02   [Box 3 F18]

Typed Document Copy, 3 p.

Reports attack by uniformed S.A. men on Samuel Brennan Bossard, American citizen, on Berlin street; two nearby policemen saw the attack but made no attempt to assist him or restrain the attackers.

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0290-00

Report on German press, radio, film, and theater as political instruments in the Hitler government, prepared by Consul Raymond H. Geist., 1933 September 08   [Box 3 F18]

Typed Document Copy, 41 p.

Attached leaf: Chart showing organization of German propaganda organization under the Ministry of Public Enlightenment and Propaganda. Enclosed with No. 293. All newspapers either owned or controlled by National Socialists; publication of any item displeasing to Nazis means suppression of paper; Jewish editors removed; Nazis secured control of radio by accusing heads of broadcasting service of misuse of money and imprisoning them; programs now extremely nationalistic in character; no Jews or Jewish material used; 10 to 15 million radio listeners in Germany; manufacturers now producing inexpensive set and aim is a radio in every home; Nazi takeover of theaters and film industry not difficult, because government subsidies needed for survival; only plays or films which are Nazi approved may be shown.

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Items 0291-0308   [Box 3 F19]

0291-00

Messersmith, G.S., Berlin. Despatch No. 1573 to Secretary of State [Cordell Hull], Washington., 1933 September 09   [Box 3 F19]

Typed Document Copy, 7 p.

Attendance and business at Leipzig Fair reported considerably below previous levels; few foreign exhibitors or visitors; indication that economic situation in Germany has not improved and that foreigners have shown their disapproval of what is taking place in Germany.

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0292-00

Messersmith, G.S., Berlin. Despatch No. 1574 to Secretary of State [Cordell Hull], Washington., 1933 September 09   [Box 3 F19]

Typed Document Copy, 4 p.

Corrects error in dispatch No. 1550 which reported elimination of discriminatory action against American and foreign steamship lines; restrictions affecting transfer of passage money does not, in practice, affect American lines since operation costs and purchases made in Germany more than equal the amount of passage money received in German marks.

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0293-00

Messersmith, G.S., Berlin. Despatch No. 1579 to Secretary of State [Cordell Hull], Washington., 1933 September 12   [Box 3 F19]

Typed Document Copy, 2 p.

Enclosure: See No. 290. Transmitting report prepared by Consul [Raymond H.] Geist on German press, radio, film and theater as political instrument in the Hitler government.

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0294-00

Memorandum of conversation with Dr. Stuckert of the Prussian Ministry of Culture with respect to giving title of Professor to Dr. Farmer Loeb., 1933 September 12   [Box 3 F19]

Typed Document Copy, 2 p.

Enclosed with No. 333 Stuckert agreeable but since question of legal procedure involved must refer matter to Ministry of Interior.

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0295-00

Memorandum of conversation between G.S. Messersmith and [Walther] Funk, State Secretary of the Propaganda Ministry., 1933 September 13   [Box 3 F19]

Typed Document Copy, 3 p.

Enclosed with No. 301. Reminded Funk that the responsibility for discrimination against American picture firms was that of the Ministry since the Ministry had delegated its authority; further stated that American firms and their photographers were not permitted to become members of the Verein [Association of German Press Photographers]; Funk surprised that matter had not been settled; had been told that it was; Messersmith replied that it would not be settled until Funk or the Minister [Josef Goebbels] spoke to the President of the Verein and made it clear to him that the discriminatory action should stop; Ministry of Propaganda complains of unfavorable news in American press, but makes no effort to provide something which would make favorable impression.

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0296-00

Memorandum of conversation between G.S. Messersmith and Dr. Freisler of the Prussian Ministry of Justice., 1933 September 13   [Box 3 F19]

Typed Document Copy, 2 p.

Enclosed with No. 303. Discussed the discriminatory treatment received by Americans in German courts; mentioned the many attacks on American citizens in Germany and the fact that only one of the attackers had been brought to trial; for this offense he was fined 50 marks; contrasted this trial with that of the American seaman, Torsten Johnson, who was sentenced to six months in prison for a remark which he probably never made; Freisler seemed concerned and immediately drafted an order to all prosecuting attorneys in Prussia stating that any case involving an attack upon a foreigner should be brought to the attention of the head of the Ministry of Justice.

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0297-00

Memorandum of conversation with Dr. Metzner in Reichs Ministry of Interior with respect to Dr. Farmer Loeb., 1933 September 13   [Box 3 F19]

Typed Document Copy, 1 p.

Enclosed with No. 333 Metzner agreeable to naming Loeb professor and said he would bring matter to attention of Minister [Wilhelm Frick].

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0298-00

[Billikopf, Jacob]. To Judge [Julian W.] Mack., 1933 September 14   [Box 3 F19]

Typed Letter Copy, 7 p.

Quotes Messersmith as saying "there is no greater crime in history than that which the German government is committing against the Jews;" Nazis determined to confiscate Jewish property; found Messersmith understanding and sympathetic; discussed with him existing immigration laws and his hope that the U.S. would admit more Jews from Germany; notes that U.S. trade with Germany has decreased, whereas German trade with Russian has increased; Messersmith opposed to public boycott; offers suggestion for counter-propaganda, preferably by non-Jews, not attached to any Jewish organization; the fight between left and right wing in Hitler party may result in collapse of Hitlerism.

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0299-00

Johnson, Torsten, Copenhagen. To American Consular Service, Berlin., 1933 September 14   [Box 3 F19]

Typed Letter Copy, 1 p.

Enclosed with No. 300. Appreciates Consulate's efforts in obtaining his release from prison.

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0300-00

Messersmith, G.S.Berlin. Despatch No. 1587 to Secretary of State [Cordell Hull], Washington., 1933 September 15   [Box 3 F19]

Typed Document Copy, 2 p.

Enclosure: See No. 299. Torsten Johnson, American seaman who had been sentenced to six months imprisonment in Stettin, has been pardoned and released, and sailed Sept. 13 for the U.S.; called at Prussian Ministry of Justice and expressed appreciation for the prompt action taken.

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0301-00

Messersmith, G.S., Berlin. Despatch No. 1585 to Secretary of State [Cordell Hull], Washington., 1933 September 15   [Box 3 F19]

Typed Document Copy, 8 p.

Enclosure: See No. 295. American photographic firms in Germany still having difficulty, in spite of verbal and written assurance from Ministry of Propaganda that discrimination against American firms would stop; responsibility for issuing permits to take pictures at public functions has been delegated by the Ministry to Association of German Press Photographers, whose president is owner of largest German picture firm and who wishes to reduce American competition by denying American firms sufficient permits; called on State Secretary [Walther] Funk and discussed the matter.

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0302-00

Messersmith, G.S., Berlin. Despatch No. 1589 to Secretary of State [Cordell Hull], Washington., 1933 September 16   [Box 3 F19]

Typed Document Copy, 13 p.

Dr. [Josef] Goebbels made a speech on Sept. 13 before officers of Nazi Party in Berlin; Goebbels the principal popular spokesman of the Party and has greatest appeal to the masses; his main theme the campaign to raise funds against"hunger and cold" of the unemployed during the coming winter; even the employed have such slender means, contributions are likely to be small; it will require more than speeches and organization to raise sufficient funds.

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0303-00

Messersmith, G.S., Berlin. Despatch No. 1590 to Secretary of State [Cordell Hull], Washington., 1933 September 16   [Box 3 F19]

Typed Document Copy, 5 p.

Enclosure: See No. 296. Transmitting memorandum of conversation with Dr. Freisler of the Prussian Ministry of Justice with respect to the attitude of the courts in cases involving Americans.

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0304-00

Memorandum of conversation with Dr. Buttmann in Reichs Ministry of Interior with respect to Dr. Farmer Loeb., 1933 September 18   [Box 3 F19]

Typed Document Copy, 3 p.

Enclosed with No. 333. Received no satisfaction from Buttmann on subject of title of Professor for Dr. Loeb; Buttmann obviously fanatical anti-Semite; tried to deliver lecture on Jewish question; Messersmith reminded him that he had not come to discuss Jewish question but the case of one physician, Dr. Loeb; Buttmann said he would discuss matter with the Minister [Wilhelm Frick] and let Messersmith know within a week.

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0305-00

Messersmith, G.S., Berlin. Despatch No. 1596 to Secretary of State [Cordell Hull], Washington., 1933 September 21   [Box 3 F19]

Typed Document Copy, 19 p.

Enclosure: See No. 204. Summarizes present status of anti-Semitic movement in Germany; Dr. Achim Gorcke, racial expert in Ministry of Interior, defines non-Aryan as one who has even one Jewish grandparent; no alleviation in the situation of Jews in Germany; Hitler and Goebbels, of the higher Nazi leaders, remain adamant, and will not listen to views on the subject contrary to their own; racial offices established throughout Germany to compile racial records of all school children; law soon to be issued prohibiting marriage of German to Jews; persons of Jewish blood prohibited from holding any public office; laws planned to disfranchise Jews in preparation; Minister of Interior now has authority to deprive persons of citizenship without giving reason; among those who have lost citizenship in this manner are Heinrich Mann, Lion Feuchtwanger, Georg Bernhard, and Philipp Scheidemann; almost no Jewish professors left in universities; position of Jewish physicians and lawyers becoming daily more difficult; physical persecution of Jews has abated somewhat, but isolated instances continue.

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0306-00

Messersmith, G.S., Berlin. Despatch No. 1610 to Secretary of State [Cordell Hull], Washington., 1933 September 25   [Box 3 F19]

Typed Document Copy, 5 p.

Attackers of Philip Zuckerman have still not been identified; convinced that police do not wish to identify them; two months after attack Zuckerman still hardly able to walk; after further examination may recommend that U.S. government ask for pecuniary compensation for Zuckerman.

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0307-00

Messersmith, G.S., Berlin. Despatch No. 1616 to Secretary of State [Cordell Hull], Washington., 1933 September 26   [Box 3 F19]

Typed Document Copy, 3 p.

Bulletin and translation not with copy. Transmitting news bulletin issued by the Japanese Club in Germany; brought to his attention by friendly German who has contacts in Japanese Embassy; according to friend, staff at Embassy speak in manner hostile to U.S.

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0308-00

Messersmith, G.S., Berlin. Despatch No. 1617 to Secretary of State [Cordell Hull], Washington., 1933 September 26   [Box 3 F19]

Typed Document Copy, 4 p.

Reinhold Muchow and Sturmbannfuehrer Maehling Nazi leaders, killed in tavern; according to German press Muchow's death an accident and Maehling's a suicide, but general impression is that Maehling shot Muchow and was himself shot by other companions with whom they had been drinking; the two given a state funeral; incident of consequence only because it shows a trend; majority of German public will believe the published version of the study and the two men will become heroes.

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Items 0309-0321   [Box 3 F20]

0309-00

Messersmith, G.S., Berlin. Despatch No. 1618 to Secretary of State [Cordell Hull], Washington., 1933 September 26   [Box 3 F20]

Typed Document Copy, 16 p.

Reports propaganda activities of various departments of German government; American visitors to Germany not getting true picture of situation; they generally go first to Amerika Institut, a semi-official body, from which they are carefully shepherded during their stay in the country; Samuel Bossard, American student who was attacked on Berlin street, and who was very angry when he came to Consulate to report attack, later changed his story; obvious that he had been influenced; learned that he had been shown the sights of Berlin and Potodam and introduced to young people; Walter Orloff, American student who had been accused of treason and imprisoned was taken directly to his ship when released and newsmen were not allowed to see him; on his arrival in New York he refused to be interviewed; Rotary Club, which had been suppressed for a time because it admitted Jews, was allowed to continue when it was realized it could be effective propaganda machine.

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0310-00

Messersmith, G.S., Berlin. Despatch No. 1619 to Secretary of State [Cordell Hull], Washington., 1933 September 26   [Box 3 F20]

Typed Document Copy, 4 p.

Ernst Kind, representative of Gillette Safety Razor Co. in Solingen being harassed by unscrupulous group which has already been punished for counterfeiting Gillette blades and using their trade marks; group has political connections in Nazi Party and has enlisted Nazi's help in making difficulties for Kind; Kind's office raided and papers seized; Consulate intervened and papers returned; Kind then accused of bribing police and arrested, his papers again seized; Consulate intervened with Ministry of Justice and Secret Police; Chief of Secret Police sent wireless to Solingen instructing that Kind was not to be molested in any way.

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0311-00

Messersmith, G.S., Berlin. Despatch No. 1623 to Secretary of State [Cordell Hull], Washington., 1933 September 28   [Box 3 F20]

Typed Document Copy, 10 p.

Reports efforts in behalf of Watchtower Bible and Tract Society; earlier conversations with Staatssekretaer [Ludwig] Grauert in Prussian Ministry of Interior led to promise that property of Society would not be confiscated; in spite of promises property at Magdeburg was seized and eight of the personnel thrown into prison; no evidence that Society was carrying on subversive activities; ban on the Society and seizure of its property a violation of Treaty of 1923 between U.S. and Germany; Consul [Raymond H.] Geist called at Prussian Ministry and made vigorous protest to Grauert; Grauert sent telegram to Magdeburg with instructions that property be released, but with stipulation that no printing be done there and no meetings held in chapel; opinion of Consulate General that, under Treaty, Society should be allowed to continue printing so long as it violates no German laws now in force.

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0312-00

Messersmith, G.S., Berlin. To William Phillips, Under-Secretary of State, Washington., 1933 September 29   [Box 3 F20]

Typed Letter Copy, 18 p.

Brutality of Nazi movement beyond question; many in prison or concentration camp merely because of differing views; Jews cruelly maltreated; mendacity of leaders unbelievable; through their speeches and propaganda machine they lie not only to the outside world but to their own people; some foreign visitors misled; flattered by attentions of officials assigned to them, they go home and become apologists for German government; top leaders still Hitler, Goering, and Goebbels; Hitler the center about which all revolves; Goering represents the physical force of the Party; Goebbels the intelligence, the organizing ability, and principal mouthpiece of Party; many protestations from leaders about peaceful intentions of government; true they don't want war yet, but they are preparing for it as rapidly as possible; they know nothing about outside world and foreign opinion, but are drunk with their power inside Germany; more moderate Germany must be restored if peace is to be preserved.

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0313-00

Messersmith, G.S., Berlin. Despatch No. 1627 to Secretary of State [Cordell Hull], Washington., 1933 September 30   [Box 3 F20]

Typed Document Copy, 5 p.

Replying to Department's request for information as to situation of B'Nai Brith in Germany; talked with Dr. Alfred Goldschmidt, President of B'Nai Brith in Germany who stated that central government has issued no edict against the lodges, and the Berlin lodge has suffered no interference, but in some of the smaller cities and towns, there had been incidents - lodges closed, premises searched, funds seized; chief difficulty now lack of funds, with so many members thrown out of work.

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0314-00

Messersmith, G.S., Berlin. To J[ay] Pierrepont Moffat, Washington., 1933 October 02   [Box 3 F20]

Typed Letter Copy, 1 p.

Sending copy of recent letter to [William] Phillips. (See No. 312)

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0315-00

Messersmith, G.S., Berlin. Despatch No. 1641 to Secretary of State [Cordell Hull], Washington., 1933 October 07   [Box 3 F20]

Typed Document Copy, 2 p.

Sends copy of article from Manchester Guardian of Oct. 4, 1933, which describes operations of new German Secret Police; Consulate has on several occasions had to deal with police; article enclosed with original of dispatch only.

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0316-00

Messersmith, G.S., Berlin. Despatch No. 1647 to Secretary of State [Cordell Hull], Washington., 1933 October 10   [Box 3 F20]

Typed Document Copy, 9 p.

Christian Science Societies in Thuringia closed and their funds confiscated by order of Thuringian government; Consul [Raymond H.] Geist, calling on Dr. [Ludwig] Grauert at the Prussian Ministry of Interior brought up the subject unofficially and informed Grauert that while Christian Science Membership in Germany was small and generally in humble circumstances, in U.S. and England the Society's members include many intellectual and influential people; and the closing of the Societies in Thuringia would create a very unhappy impression not only in America but in other countries; Grauert immediately sent necessary instructions to see that societies were reopened in Thuringia; no assurance there will not be other trouble later; firm intention of the Party and the Government to coordinate all religious bodies in Germany into the German National Church.

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0317-00

Messersmith, G.S., Berlin. Despatch No. 1660 to Secretary of State [Cordell Hull], Washington., 1933 October 15   [Box 3 F20]

Typed Document Copy, 2 p.

Rabbi Joshua Kohn of Utica, New York challenged statement that "there were 450,000 or 460,000 prostitutes in Berlin and that Jews were responsible for that situation" and was told that American Consul in Berlin had verified the figures; Messersmith denies that he or any member of his staff has verified such a statement.

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0318-00

Messersmith, G.S., Berlin. Telegram to Secretary of State [Cordell Hull], Washington., 1933 October 18   [Box 3 F20]

Typed Document Copy, 1 p.

Has information German exporters holding shipments fearing application countervailing duties under Section 303 Tariff Act; recommends U.S. government defer all action pending receipt of dispatch presenting important data.

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0319-00

Messersmith, G.S., Berlin. Despatch No. 1670 to Secretary of State [Cordell Hull], Washington., 1933 October 18   [Box 3 F20]

Typed Document Copy, 9 p.

Observations on inadvisability of U.S. government applying Section 303 of Tariff Act of 1930 providing for countervailing duties on imports from certain countries.

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0320-00

Messersmith, G.S., Berlin. To William Phillips, Washington., 1933 October 19   [Box 3 F20]

Typed Letter Copy, 18 p.

Assailants of [Roland J.] Velz, American in Dusseldorf, arrested and sentenced to six months in prison, but no action taken until strong protests made; Ambassador [William E. Dodd] made excellent speech before American Chamber of Commerce; to the point, but so well-worded German leaders could not openly take offense; Ambassador had appointment last Friday with Foreign Minister [Konstantin] von Neurath but on arrival at Foreign Office was told von Neurath was with Hitler and could not see him until later in the day; snub may have been intended; Hitler forced to make decision on question of attacks on foreigners; American press helpful, emphasizing probability of U.S. government informing Americans of danger of travel in Germany; Hitler realized economic effects of such action; German press now reporting attacks as well as punishment of attackers, even though they are S.A. men; rumors of Cabinet changes; von Neurath, [Kurt] Schmitt, and [Lutz Schwerin von] Krosigk, none of whom are Party members, may go; Schmitt most useful member of Cabinet and has done much to bring quieter situation in industry, but is under constant attack by the very radical Minister of Agriculture [Richard Walther] Darre; Goebbels and Goering at odds, but outwardly they work together; arranged small luncheon to bring together Ambassador Dodd, Minister Schmitt and his chief Lieutenant [Wilhelm] Posse; discussed proposed U.S. countervailing duties on German imports and probability of German retaliation with anti-dumping measures against U.S. goods; believes U.S. should not take such action at present; unemployment in Germany still high but business in general seems improved; budget in good shape; exports show larger balance then in previous months; propaganda activities very subtle; clever system worked out to entertain and flatter foreign visitors of any importance and fill them with all sorts of propaganda which many swallow; [Charles Richard] Crane, former U.S. Minister to China made surprising statements in Paris after being in Germany; dissatisfaction among S.A. that they can no longer do as they please without punishment; Schmitt confided that he is working on Jewish question; he realizes Germany is losing some of the best brains in the country, particularly scientists; Hitler, in conversation with Ambassador Dodd, gave such satisfying and unexpected assurances that they are too good to be true; Hitler will say anything and convinces himself, for the moment, that he is speaking truth, but his words cannot be trusted; after withdrawal from League and Disarmament Conference, Hitler said the Reichswehr of 100,000 men was Germany's only armed force, when the truth is the S.A.'s 660,000 men are as well drilled and almost as well trained as the regular army; protestations that Germany wants only peace are just as empty, when even their children are taught war games and the populace frightened by suggestion of air raids by foreign planes; Germany now eager for U.S. good will; she fears France, can disregard Poland, Czechoslovakia, and Belgium, is not sure of England, and fears U.S.; U.S. must stand firm.

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0321-00

Messersmith, G.S., Berlin. Despatch No. 1675 to Secretary of State [Cordell Hull], Washington., 1933 October 20   [Box 3 F20]

Typed Document Copy, 2 p.

Assailants of Roland J. Velz, American citizen in Dusseldorf, arrested and sentenced to six months imprisonment; arrest and sentence given publicity in German press; authority of police may be strengthened.

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Items 0322-0333   [Box 3 F21]

0322-00

Messersmith, G.S., Berlin. Despatch No. 1676 to Secretary of State [Cordell Hull], Washington., 1933 October 20   [Box 3 F21]

Typed Document Copy, 4 p.

Assailant of Dr. Daniel Mulvihill, American residing temporarily in Berlin, arrested and sent to concentration camp.

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0323-00

Messersmith, G.S., Berlin. Despatch No. 1677 to Secretary of State [Cordell Hull], Washington., 1933 October 20   [Box 3 F21]

Typed Document Copy, 4 p.

Reports further on case of Samuel Bassard, American citizen who was attacked by Hitler Jugend on Berlin street; Foreign Office sent formal apology to Embassy; in view of Bassard's statement to press on arrival in New York that "if any foreigner had difficulties in Germany it was his own fault," thinks the case may be considered closed.

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0324-00

Messersmith, G.S., Berlin. To William Phillips, Washington., 1933 October 28   [Box 3 F21]

Typed Letter Copy, 18 p.

Must judge Germany by her acts, not what her leaders say; not so much physical brutality now but concentration camps and prisons still full of innocent people; when American visitors report favorably on Germany one wonders what the price has been; Mr. Ball, foreign traffic manager of Pennsylvania R.R., made statement in Paris that if Americans got in trouble in Germany it was their own fault; Thomas John] Watson, President of U.S. Chamber of Commerce, gave interview to "Angriff", Goebbels' paper, in which he gave present regime clean bill of health; hardness and brutality exist even among the youth; Hitler, Goebbels and Goering more moderate in their public utterances, but still intemperate in action; election Nov. 12 in which populace expected to approve regime's policies; citizens afraid to abstain from voting and afraid to vote "No"; many campaign speeches to justify Germany's leaving League and Disarmament Conference by making people believe Germany's security menaced; speeches emphasize unfavorable foreign press; [Kurt] Schmitt braved Hitler on Jewish question in conference of several hours; tried to convince Hitler economic aspects of present Jewish policy presented grave dangers for Germany; is told Hitler remained unconvinced and implacable; had luncheon for Ambassador [William E. Dodd] to meet some of the radical Nazi leaders, among them Dr. Hilland, who admitted their Jewish policies were causing them more injury abroad than any other aspect of Nazi movement and said that within reasonable time a proper percentage of Jews would again take part in all phases of German life; told him his statement could not be reconciled with what was still taking place; on Oct. 1, 150 members, 85 percent of whom were Jews, were eliminated from the Berlin Stock Exchange; important German company received official letters from two ministries with orders to eliminate from its Board of Directors all remaining Jews, though these Jews were considered indispensable to the business; to appease public sentiment at home and abroad German press now publishing less violent articles on racial matters, but policy of Nazi leaders has not changed; continued talk that there will be changes in Cabinet after election; concerned about Nazi propaganda in U.S.;son of Ivy [Ledbetter] Lee here as his father's representative; convinced that both father and son are in Nazi employ; told Party men at luncheon that their propaganda in U.S. would do them more harm than good; Americans recognize propaganda for what it is and are sick of it; an important Party man said at luncheon he had heard that President and Mrs. Roosevelt had only Jewish advisers that U.S. anti-German policy was dictated by Jews; pointed out to him that if Roosevelt's had Jewish friends and advisers it was because they were fine people and good citizens and any anti-German feeling in U.S. due not to any action of our government but to actions of German government; Dr. Ilgner to leave for U.S. in a month; he is now big man in Party and propaganda adviser; thinks himself a superman and is unscrupulous; should be watched, but not believed when he gets to America; Ambassador Dodd extremely resourceful; effort made to force him into position to say things favorable about Germany, but he will not allow himself to be used; resentment in Germany among all classes about treatment of Germany in disarmament problem; when asked opinion on Germany's withdrawal from League and Disarmament Conference, replied that decision to withdraw was made in heat of anger, and such decisions usually a mistake; convinced that Hitler is mentally a pathological case; Germans now courting Japanese; they will try to court U.S. also but U.S. must remain objective and cool; believes nothing can now stop this government except severe economic reverses.

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0325-00

Messersmith, G.S., Berlin. Despatch No. 1695 to Secretary of State [Cordell Hull], Washington., 1933 November 01   [Box 3 F21]

Typed Document Copy, 13 p.

Reports further on status of anti-Semitic movement in Germany; aim of government and Party to eliminate Jews from active and gainful participation in every phase of German life; masses may not approve, but fear to voice opposition; Dr. [Kurt] Schmitt, Minister of Economics in Hitler cabinet, inclined to be moderate intelligent and fearless, Schmitt discussed matter with Hitler, but Hitler remains implacable; movement will continue as long as present government lasts; elimination of Jews from business, professions, and arts will cause irreparable damage to Germany's cultural and economic structure.

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0326-00

Messersmith, G.S., Berlin. Despatch No. 1696 to Secretary of State [Cordell Hull], Washington., 1933 November 01   [Box 3 F21]

Typed Document Copy, 14 p.

Germany now sensitive to foreign opinion, but instead of refraining from acts which have given her bad name abroad, tries to counteract by spreading propaganda; distinguished visitors are met by people of the various ministries, entertained, and shown the sights; some Americans no doubt taken in; leaders of government now disclaiming their interest in spreading National Socialism abroad, but there is evidence to the contrary; Dr. Ilgner, high Party official who also has connections with I. G. Farben going to U.S. in January; no credence should be placed in any statements he makes about Germany.

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0327-00

Messersmith, G.S., Berlin. Despatch No. 1700 to Secretary of State [Cordell Hull], Washington., 1933 November 02   [Box 3 F21]

Typed Document Copy, 9 p.

Replies to Department's request for information concerning possible discrimination in favor of German ships; according to Mr. Monroe, freight traffic manager for United States Lines and Baltimore Mail Line, German importers tend to use German ships whenever possible; thinks there is private agreement among importers, with government approval,but no law or regulation demanding use of German ships; American importers practice same policy; inadvisable for Department to take any action at present.

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0328-00

Messersmith, G.S., Berlin. Despatch No. 1701 to Secretary of State [Cordell Hull], Washington., 1933 November 02   [Box 3 F21]

Typed Document Copy, 13 p.

Replies to Department's request for information on public and private schools in Germany to which American parents may send their children; both public and private schools are controlled by government and the chief aim is to develop good Party members; new textbooks being written; emphasis on physical and militaristic training; would not advise American parents to send children to any German school.

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0329-00

Messersmith, G.S., Berlin. Despatch No. 1702 to Secretary of State [Cordell Hull], Washington., 1933 November 02   [Box 3 F21]

Typed Document Copy, 4 p.

Newspaper "NS - Weltpost," founded recently in Hamburg; Consular officers in Hamburg reported contributing to paper; according to Consul [John J.] Meily no American or English Consular officers contributed; copy sent by Meily; articles in several languages; obviously intended for propaganda abroad; cites one article entitled "The Tasks of the Foreign Division of the National Socialist Party"; such propaganda may be legally inadmissible in U.S. and measures to prohibit its admission may be in order.

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0330-00

Messersmith, G.S., Berlin. Unnumbered dispatch to Secretary of State [Cordell Hull], Washington., 1933 November 03   [Box 3 F21]

Typed Document Copy, 18 p.

Observations on Germany's withdrawal from Disarmament Conference and League of Nations and on election of Nov. 12; withdrawal a surprise to German people; Goebbels, at conference, told by Sir John Simon that British government would support no increase in armaments of Germany until it could place more confidence in the promises of present German government; Goebbels, angered, hastened back to Berlin, conferred with Hitler, and announcement of withdrawal was made next day; election, called for Nov. 12, a clever political move; voters to vote yes or no on whether they support the government and also for candidates of the Reichstag, all of whom are National Socialists; only one outcome possible, but government can boast that all Germany is united; leaders making campaign speeches as if this were real election.

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0331-00

Messersmith, G.S., Berlin. To Minister of the Interior of the Reich [Wilhelm Frick], Berlin., 1933 November 04   [Box 3 F21]

Typed Letter Copy, 1 p.

Cy.enclosed with No. 333 Reminds Frick of conversation with Dr. Buttmann of his Ministry on Sept. 15 with regard to case of Dr. Farmer Loeb and his appointment as a Professor in the University of Berlin; was promised a decision within a few days, but has heard nothing; Dr. Loeb has already departed for U.S.

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0332-00

Messersmith, G.S., Berlin. Despatch No. 1713 to Secretary of State [Cordell Hull], Washington., 1933 November 07   [Box 3 F21]

Typed Document Copy, 8 p.

Further information with respect to discrimination in favor of German ships; Alexander C. Kerr, European manager of Southern States Lines, called at Consulate; his line carries only freight, and unlike the Roosevelt Steamship Co., which carries passengers also, has suffered considerable loss because of German discriminatory practices; use of German ships not an official government regulation and for the present no action U.S. government can take; if situation continues, U.S. might adopt retaliatory measures.

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0333-00

Messersmith, G.S., Berlin. Despatch No. 1715 to Secretary of State [Cordell Hull], Washington., 1933 November 07   [Box 3 F21]

Typed Document Copy, 10 p.

Enclosures: See Nos. 294, 297, 304, and 331. Dr. Farmer Loeb, American citizen and Jewish physician practicing in Berlin, removed from his position on faculty of Medical School, University of Berlin, and barred from practicing in hospital; was on point of being named full professor when present government took over; decided to return to U.S., but wished to have the title of "Professor", the office of which he would renounce immediately; Consulate intervened unsuccessfully with Prussian Ministry of Culture and Reichs Ministry of Interior.

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Items 0334-0352   [Box 3 F22]

0334-00

Messersmith, G.S., Berlin. Despatch No. 1723 to Secretary of State [Cordell Hull], Washington., 1933 November 09   [Box 3 F22]

Typed Document Copy, 7 p.

Attended Rotary Club luncheon at Hotel Kaiserhof on Nov. 8; visiting speaker from Braunschweig made very disparaging remarks about American press; left during speech and returned to Consulate; Alexander Flinsch, presiding officer and Fritz Klein called at Consulate on behalf of governing board to express regret.

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0335-00

Von Gleichen, Berlin. To G.S. Messersmith, Berlin., 1933 November 11   [Box 3 F22]

Typed Document Copy, 1 p.

(In German). The Secretary of the Berlin Rotary Club apologizes for disparaging statements about American press made by guest speakers at Rotary luncheon; assures Messersmith that the Berlin Rotarians disapproved of the statements.

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0336-00

1933 November 11   [Box 3 F22]

Typed Document Copy, 1 p.

English translation of preceding entry.

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0337-00

Messersmith, G.S., Berlin. Despatch No. 1733 to Secretary of State [Cordell Hull], Washington., 1933 November 14   [Box 3 F22]

Typed Document Copy, 10 p.

Outcome of election on Nov. 12 as expected; 95 percent voted "Yes" in support of Hitler government and elected National Socialist candidates to the Reichstag; question so phrased people had to vote "Yes" even though opposed to Hitler's government and National Socialism; Hitler will use vote as one of confidence in him giving him blanket authority for any policy he adopts; Reichstag election of no significance; government and Party leaders have already proclaimed their disapproval of parliamentary government; election was really a spectacle to show the rest of the world that the German people were solidly united behind the Hitler regime.

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0338-00

Messersmith, G.S., Berlin. Despatch No. 1741 to Secretary of State [Cordell Hull], Washington., 1933 November 14   [Box 3 F22]

Typed Document Copy, 22 p.

Observations on economic situation in Germany; accurate data difficult to secure; information from bankers, industrialists, and business men not encouraging in contrast to optimistic public statements; Hitler's appointment of [Kurt] Schmitt as Minister of Commerce a wise move; Schmitt an able and prudent man who disagrees with Nazi attitudes and policies; situation likely to improve if Schmitt allowed to remain in office, but he has enemies close to Hitler who would like him removed; General Council for Trade met on Sept. 21; Hitler and Krupp von Bohlen-Halbach spoke in general terms; Schmitt was only person present who offered constructive ideas; said when competent men were removed from business and industry and replaced by incompetents Germany could not expect recovery; emphasized importance of foreign trade; unemployment remains primary problem; government considering simplification of tax system.

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0339-00

Messersmith, G.S., Berlin. Despatch No. 1747 to Secretary of State [Cordell Hull], Washington., 1933 November 17   [Box 3 F22]

Typed Document Copy, 6 p.

Comments on campaign against middle class bigotry; constant references in speeches and press to "New" German, Nordic, Aryan, brave, hardy and honest; German women to be model mothers and use no tobacco or cosmetics; Hitler has set pace in effusive declarations, but when called to his attention by Italian Ambassador that such declarations were subjecting Nazis to ridicule by the whole world, Hitler had [Ernst] Roehm, chief of staff of S.A. make statement that National Socialists were not apostles of morality and that it was not responsibility of S.A. to watch over the morals of German people; movement not entirely stopped however; leader of National Socialist women's organizations said true German woman of the new order would look to her own morals and decorum.

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0340-00

Messersmith, G.S., Berlin. Despatch No. 1748 to Secretary of State [Cordell Hull], Washington., 1933 November 17   [Box 3 F22]

Typed Document Copy, 4 p.

Special consideration to be shown veterans under proposed decrees to be issued in Germany; another instance of placing emphasis on military matters.

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0341-00

Messersmith, G.S., Berlin. Despatch No. 1749 to Secretary of State [Cordell Hull], Washington., 1933 November 18   [Box 3 F22]

Typed Document Copy, 3 p.

Summarizes address made by Dr. Kurt Fischer of the Berlin Labor Office on problem of unskilled workers; according to Fischer every German worker must be guaranteed adequate income; unskilled will be trained at newly set up apprentice shops and taught trade or profession; public funds to be used; Fischer's statement completely unrealistic; another example of type of propaganda fed to the masses.

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0342-00

Messersmith, G.S., Berlin. To William Phillips, Washington., 1933 November 23   [Box 3 F22]

Typed Letter Copy, 12 p.

Election on Nov. 12 a huge spectacle but not real election; questions so phrased that voter must vote "Yes"; vote intended to be used to home and abroad to show complete endorsement of National Socialist Party and all its actions; no candidates for Reichstag except those of National Socialist Party; Reichstag election, when leaders have proclaimed the uselessness of parliaments, an indication of hollowness of election; leaders will claim vote is expression of will for peace, at the same time they are preparing for war; [Kurt] Schmitt and [Hjalmar] Schacht still in cabinet; possibly Hitler sees wisdom of keeping a conservative element in government, even though he is more in sympathy with radicals; economic prospects not encouraging; pressure for rearmament comes not only from Party but from industry; going ahead in aircraft; Krupps increasing capacity for armament production; according to Pertinax [i.e. André Geraud] France could not fight a preventive war, because French military already afraid of German defensive action through chemical warfare; persecution of Jews continues; [Albert] Einstein's German property confiscated; U.S, must be unrelenting in combatting Nazi propaganda in America.

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0343-00

1933 November 24   [Box 3 F22]

Typed Document, 3 p.

2 copies. Character sketch of Paul Josef Goebbels; slight figure, long, narrow face; highly intelligent, tireless, but vain and prejudiced; clever propagandist; closest to Hitler of all the Nazi party leaders; one of the most powerful and dangerous men in the Party.

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0344-00

1933 November 25   [Box 3 F22]

Typed Document, 3 p.

2 copies. Appraisal of Hermann Goering; stocky, broad shouldered; gives impression of force and virility; primarily a soldier, fond of display, very vain and prejudiced, but amenable to reason; no student, but has a keen receptive mind; good administrator.

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0345-00

Villard, Oswald G., New York. To G.S. Messersmith, Fleetwood, Pa., 1933 December 19   [Box 3 F22]

Typed Letter Signed, 1 p.

Is glad to know Messersmith is back in America; compliments him on the splendid service he has given in Berlin; hopes he will come to New York and that they can meet for a talk.

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0346-00

Bienstock, Victor M., Reading, Pa. To G.S. Messersmith, Fleetwood, Pa., 1933 December 19   [Box 3 F22]

1 p.

Telegram thanking Messersmith for his work on behalf of Jewish people; wishes to arrange reception in his honor.

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0347-00

James, E.L., New York City. To G.S. Messersmith, Fleetwood, Pa., 1933 December 22   [Box 3 F22]

1 p.

Telegram inviting Messersmith to luncheon at the New York Times when he is in New York.

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0348-00

James, E.L., New York City. To G.S. Messersmith, Fleetwood, Pa., 1933 December 26   [Box 3 F22]

Draft of telegram inviting Messersmith to lunch at the New York Times on Jan. 4. A Draft S.

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0349-00

Villard, Oswald G., New York City. To G.S. Messersmith, Fleetwood, Pa., 1933 December 26   [Box 3 F22]

Typed Letter Signed, 1 p.

Is happy that they can meet for lunch on Jan. 10; has invited about a dozen friends; informs Messersmith that his name has been put on The Nation's annual Honor Roll for 1933.

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0350-00

Chadowski, Elvira(Secretary to Jacob Billikopf), Philadelphia. To G.S. Messersmith, Fleetwood, Pa., 1933 December 27   [Box 3 F22]

Typed Letter Signed, 1 p.

Judge Julian W. Mack is helping Billikopf arrange dinner for Jan. 3; among those who have accepted are Felix M. Warburg, Justice Irving Lehman, and Henry Morganthau, Sr.

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0351-00

1933 December   [Box 3 F22]

Typed Document Copy, 24 p.

Memorandum, undated; observations on the commercial and agricultural attaches of the Dept. of Commerce and the Dept. of Agriculture; their activities expanding to include, and duplicate, many of those performed by diplomatic and consular officers; distinguishes between trade protection, which by constitutional provision is the work of diplomatic and consular officers, and trade promotion, which may be the work of either; Consular officers prepare 85 percent of the reports on world trade and trade opportunities, but since these are distributed by the Dept. of Commerce many people think they are the work of the commercial attaches; because of misapprehension, some of support for Foreign Service has been diverted to Dept. of Commerce.

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0352-00

1933 December   [Box 3 F22]

Typed Document Copy, 9 p.

Memorandum, undated, relative to needed administrative changes in the Department of State and its Foreign Service in the interests of efficiency and economy; recognizes need for economy in all government expenditures, but recent 10 percent cut in appropriations for all departments has disastrous effect upon Foreign Service, which has in the past been maintained at minimum expenditure; recommends consolidation of embassies and consulates in foreign capitals into one establishment as an economic measure; recommends also reduction of foreign establishments of other departments, particularly the Dept. of Commerce; Commercial Attachés serve little useful purpose.

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Items 0353-0369   [Box 3 F23]

0353-00

Memorandum of conversation between G.S. Messersmith and [Wilhelm] Posse of the Ministry of Commerce., 1934 March 21   [Box 3 F23]

Typed Document Copy, 2 p.

Enclosed with No. 356. Protests to Posse discriminatory action of government in reducing quota of Deutsche Sinclair Petroleum from 1.5 percent to .5 percent; this American owned distributing company would be forced out of business and lose their German investment of about 8 million marks; Posse agreed to call matter to attention of government.

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0354-00

Memorandum of conversation between G.S. Messersmith and [Wilhelm] Posse of the Ministry of Commerce., 1934 March 21   [Box 3 F23]

Typed Document, 1 p.

Enclosed with No. 356. Gave Posse memorandum prepared by American Office Machine companies in Germany, showing damage done to them by discriminatory action since Mar. 5, 1933, and results to their business of tariff increases since then; pointed out to Posse law of June 1, 1933 favoring domestic goods in office equipment industry a violation of German-U.S. treaty; American business equipment firms stand to lose investments worth some 35 million marks; suggested to Posse continued action against American investments in Germany unfavorable background for trade negotiations which might be entered into between U.S. and Germany.

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0355-00

Memorandum of conversation between G.S. Messersmith and [Wilhelm] Posse of the Ministry of Commerce., 1934 March 21   [Box 3 F23]

Typed Document Copy, 2 p.

Enclosed with No. 356. Discussed with Posse possible trade agreements between U.S. and Germany; told Posse bill authorizing President to make agreements was pending in Congress and may be matter of days or weeks before passed; Posse disappointed; hoped conversations could begin in near future; pointed out to Posse much preparation necessary even after bill passed before U.S. ready to receive mission from Germany; Posse said situation regarding exchange available for export pressing and hoped that Germany would be among first countries with which U.S. begins negotiations.

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0356-00

Messersmith, G.S., Berlin. Despatch No. 1964 to Secretary of State [Cordell Hull], Washington., 1934 March 22   [Box 3 F23]

Typed Document Copy, 18 p.

Enclosures: See Nos. 353-355. German government wishes to send mission to U.S. to negotiate trade agreement; informed Dr. [Wilhelm] Posse of Ministry of Commerce legislation pending in Congress enabling President to make trade agreements; futile to send mission before U.S. is prepared; believes increase in German industry due to demand for arms and uniforms; buying power of masses has decreased; major German problems are unfavorable exchange position, need for raw materials, and need for increased export markets for manufactured goods; negotiations should be considered from many angles; U.S. demand for German goods decreasing; doubts amount absorbed by U.S. market would equal in value to the raw materials demanded in exchange; discrimination still practiced in Germany against American goods; resentment felt in other countries over continued anti-Jewish measures will continue to have effect on sale of German goods abroad; believes trade agreement could have good effect on German-American relations, but if unsuccessful, worse than no agreement.

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0357-00

Messersmith, G.S., Berlin. To William Phillips, Washington., 1934 March 24   [Box 3 F23]

Typed Letter Copy, 12 p.

Returned ten days ago from U.S.; situation in Germany worse than in December; much discontent; prices higher, income down; dissension among party leaders; increased activity in industry, but most of it armaments or uniforms; exports greatly decreased, and unfavorable trade balance makes it difficult to import needed raw materials; Reichswehr still untouched by Nazi movement; commander-in-chief [Werner] von Fritsche and other high ranking officers feel that present state of affairs cannot continue; some talk of Reichswehr establishing military government, with parliamentary background, and perhaps [Heinrich] Bruening to head it; Germany anxious for trade agreement with U.S.; U.S. should not be rushed into agreement, nor extend credit; devaluation of mark almost a certainty; German press announces some concentration camps abolished and many prisoners released; actually, number of camps reduced as economy measure, and prisoners merely transferred to other camps; pleased with appointment to Vienna as it will keep him near to old friends and in touch with situation followed closely for some years.

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0358-00

[Messersmith, G.S.], Berlin. To [William] Phillips, [Washington]., 1934 March 25   [Box 3 F23]

Typed Letter Copy, 1 p.

Morning paper announces President has sent nomination as Minister to Austria to Senate; was pleased with Uruguay appointment, for knows and likes that part of world, but happy to go to Vienna instead and looks forward to life and work there; appreciates confidence of President and Secretary and will try to merit it; Hitler disturbed over financial situation and dissension within Party.

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0359-00

Memorandum of conversation between G.S. Messersmith and responsible officer [unnamed] in German Foreign Office regarding prospective negotiation of trade agreement between U.S. and Germany., 1934 March 27   [Box 3 F23]

Typed Document Copy, 3 p.

Enclosed with No. 360. Officer reported attending meeting of interested ministries where they discussed instructions to be given German mission to U.S. to negotiate trade agreement; said all at meeting optimistic excepting himself, basing optimism on recent book by President Roosevelt and on conversation German Ambassador to U.S., Dr. [Hans] Luther, is said to have had with Roosevelt; Messersmith replied he saw many difficulties to be overcome in negotiation of agreement; officer informed that Dr. [Wilhelm] Posse would be member of mission and that mission planned to leave in May; officer seemed well informed that German mission would emphasize need for raw materials like cotton, copper, and petroleum and that they would wish our trade to be on a balanced basis.

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0360-00

Messersmith, G.S., Berlin. Despatch No. 1970 to Secretary of State [Cordell Hull], Washington., 1934 March 28   [Box 3 F23]

Typed Document Copy, 19 p.

Enclosure: No. 359. Further considerations in connection with possible negotiation of trade agreement between U.S. and Germany; U.S. expected to accept German manufactured goods to value of raw materials exported to Germany; veiled threats that unless German terms met, Germany will flood market with cheap goods, even though it means lowering wages and standard of living in Germany; German government now has complete power over exports and imports; Germany making bilateral agreements with other countries and would prefer to get such raw materials as she can close at home; German authorities state foreign press not correctly interpreting their policies; higher authorities not always able to prevail over secondary Party leaders; formal assurances of negotiators or German government not enough to convince U.S. that any agreements entered into will be carried out.

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0361-00

Messersmith, G.S., Berlin. To William Phillips, Washington., 1934 March 29   [Box 3 F23]

Typed Letter Copy, 4 p.

People here over-eager to send mission to U.S. to negotiate trade agreement; they need raw materials and expect U.S. to play Santa Claus, but have little to offer in return; wish to make fine bargain which will bolster falling prestige of regime; U.S. can make no worthwhile agreement with present government; build up of armaments continues; plan to build 1200 planes before end of year; importing many aircraft parts from U.S.; Air Ministry purchased three Boeing planes from United Aircraft; dissension between General [Werner] von Fritsche, head of Reichswehr, and [Ernst] Roehm, head of S.A.; Roehm insisting companies of S.A. as now constituted be taken bodily into Reichswehr; von Fritsche disagrees; if Roehm gets his way, Reichswehr will disintegrate and military force of Germany become merely an S.A. organization.

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0362-00

Messersmith, G.S., Berlin. To [Jay Pierrepont] Moffat, [Washington]., 1934 March 31   [Box 3 F23]

Typed Letter Copy, 3 p.

Enclosure not with copy. Situation here very uncertain, but see no change in government in near future; Germans very eager to negotiate trade agreement with U.S., but U.S. should not be hurried; they have naive confidence that U.S. is so anxious to dispose of her raw materials that she will accept any kind of bargain with Germany; cannot be certain terms of any agreement would be carried out; Finance and Commerce Ministries held press conference for foreign correspondents and tried to frighten U.S. by threatening to reduce wages and flood American markets with cheap goods unless U.S. agreed to supply raw materials and accept their manufactured goods in return; calls attention to article in London Times on "German Work Plan," and encloses "reply" to article which appeared in Boersen Zeitung.

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0363-00

Messersmith, G.S., Berlin. To Ambassador William E. Dodd, Washington., 1934 April 03   [Box 3 F23]

Typed Letter Copy, 7 p.

Sorry to hear of stormy trip over; Mrs. Dodd came to dinner given for Earles [George Howard, 3d] before they left for home; had pleasant afternoon at Ambassador's home at Mrs. Dodd's invitation to see Earles; pleased about change of appointment from Uruguay to Austria; will try to merit confidence of President and Secretary; Berlin and Vienna not far apart; can keep in touch; situation in Germany deteriorated since Ambassador's departure; much dissension among Party leaders and Hitler nervous; dissatisfaction among people now being voiced; economic situation approaching crisis; Germany anxious for trade agreement with U.S.; doubts wisdom of U.S. negotiating with present German government or taking any action which might keep this government in control; has not heard when to go to Vienna, but supposes instructions will come soon.

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0364-00

Messersmith, G.S., Berlin. To William Phillips, Washington., 1934 April 13   [Box 3 F23]

Typed Letter Copy, 12 p.

Top Nazi leaders unable to control secondary leaders who are as radical as ever; leaders fear collapse inevitable without outside help and look to U.S.; hearing [Hjalmar] Schacht's proposal, copy of which was sent to Department by [John Campbell] White, all must agree U.S. has nothing to gain but much to lose through any trade agreement with Germany at present; unfavorable export balances emphasize failure of new regime's program; report on German budget being prepared by [Douglas Phillips] Miller, acting Commercial Attaché, and will be forwarded to Department; increased dissension in Party, resistance to church program, high cost of living, and reduced income are factors disturbing to government; Schacht understands desperate situation better than others; he is arrogant, proud, and self-confident, and inclined to underestimate capacities of foreign bankers and business men, but he is a clever banker; has been informed that Schacht placed before Hitler a five page memorandum listing five fundamental changes which must be made if disaster is to be averted; could learn only the two first; (1) anti-Semitic policy of Party and Government must be radically altered; (2) foreign interests in Germany must be given adequate protection; in speech before American Chamber of Commerce in Berlin, Schacht said that Germany's debts to U.S. were political and must be wiped off the slate; Nazis all alike in cynical disregard of contracts or of other countries and non-Germans; Germany sees only two ways out of dilemma - negotiation of favorable trade agreements with major suppliers of raw materials and getting credit; believes no agreement made with present German government would be to U.S. advantage; Schacht naive if he expects credit from U.S. for the purpose of propping regime which is discriminating against American imports and other interests in Germany and a regime which is destroying its capacity to repay; will send copy of Miller memorandum preparatory to expected arrival of [Richard Washburn] Child.

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0365-00

Messersmith, G.S., Berlin. To Jay Pierrepont Moffat, Washington., 1934 April 14   [Box 3 F23]

Typed Letter Copy, 4 p.

Appreciates letter of March 21 with regard to Vienna appointment; pleased by editorial comment at home on appointment; should proceed slowly and carefully with trade negotiations with Germany; no confidence in Germany to carry out any agreement she might make; situation approaching crisis; anything U.S. might do would only help to prop up a regime which threatens peace of world; may be pressure from agricultural interests which seek markets and financial interests which want to protect German bond holders, but do not consider the major factors; Germany will make no payment on her interest and amortization charges on foreign obligation unless there is change in regime; military training continues; spreading disillusionment with regime because of economic situation; if break comes, believes Army will not back regime; no instructions yet on when to go to Vienna; hopes to remain in Berlin until Ambassador [Dodd] returns.

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0366-00

Phillips, William, Washington. To G.S. Messersmith, Berlin., 1934 April 14   [Box 3 F23]

Typed Letter Signed, 2 p.

Messersmith's letters helpful to the Department; congratulates Messersmith on his appointment to Vienna; hopes he will study French attitude toward Austrian problem while he is in Paris.

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0367-00

Messersmith, G.S., Berlin. To William Phillips, Washington., 1934 April 21   [Box 3 F23]

Typed Letter Copy, 3 p.

Copy of resume not with copy of letter. Transmitting copy of resume of economic and financial situation prepared by [Douglas P.] Miller, acting Commercial Attaché; agrees with Miller's conclusions; a friend reported conversation with [Hjalmar] Schacht who admitted economic situation serious, and said Hitler understood situation better now, but apparently not yet prepared to make changes; has been ill with grippe for past week but back in the office now; Miller very useful in job here; hopes he will not be transferred.

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0368-00

Wilhelm, Tom, New York. To G.S. Messersmith, Washington., 1934 April 22   [Box 3 F23]

Typed Letter Copy, 1 p.

Was informed by Ambassador [William E.] Dodd that President interested in new hook-up between leading American publisher and Hitler government; hesitated to give Dodd information in Berlin for fear it might fall into wrong hands; has just arrived from Berlin, and if President wishes, can go to Washington and outline set-up for him as well as answer other questions he might have on German situation.

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0369-00

Messersmith, G.S., Berlin. To William Phillips, Washington., 1934 April 27   [Box 3 F23]

Typed Letter Copy, 9 p.

Higher leaders of Nazis nervous; they cannot control secondary leaders; personal prestige of Hitler remains strong, but much discontent among masses; rearmament program proceeding rapidly, with principal emphasis on air equipment; action against Jews continues; acuteness of export and raw materials problem may bring about downfall of regime; [Hjalmar] Schacht and [Kurt] Schmitt have tried to resign from government, but are not permitted to; if regime falls a military dictatorship will probably be set up as a transitional government; Dr. [Rudolf] Diehls removed as head of Prussian Secret Political Police at insistence of S.A. because Diehls had argued that S.A. men be punished for wrong doing the same as others; political police now unified under [Heinrich] Himmler; cynicism of Schacht unbelievable; asked what would be German attitude at meeting with foreign creditors, he replied, "I will simply tell them that we can't pay, and for their headaches I shall recommend aspirin;" U.S. should give no aid nor take any action which would bolster up present regime; Schacht in radio speech placed blame for Germany's difficulties on Versailles Treaty, on previous "Marxist government" of Germany, and on bad will of foreign countries in not taking German exports of manufactured goods; he insists Germany showing good faith by payment of interest on debts in Reichsmarks into Konversionsbank; of little use to foreign creditor when there is no possibility of transfer; [Richard Washburn] Child here; expect to see him today.

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Series III. Vienna, Austria, 1934-1938

Messersmith was appointed Minister of Austria in 1934.

Items 0370-0388   [Box 4 F24]

0370-00

Messersmith, G.S., Paris. To William Phillips, Washington., 1934 May 03   [Box 4 F24]

Typed Letter Copy, 6 p.

Hitler in speech on May 1 reiterated peaceable intentions, but rearmament and military training proceeding at great rate; Jack [John C.] White gave luncheon recently for [Richard Washburn] Child; sat next to [Kurt] Schmitt, who is charming, intelligent, and well-meaning, but now reduced to being mouthpiece for Nazi Party; Schmitt complaining that Germany had no voice in world affairs and to make herself heard and respected would require an army and navy behind her; Henry Mann of National City Bank also at luncheon; bank had issued bonds in U.S. for Sachische Werken, one of largest public utilities in Germany; when Party came into power its capable directors were removed and the company placed in charge of two mere boys, who through poor management were crippling it; Schmitt admitted to Mann that he was powerless to do anything about it; unable to talk with Child before leaving Berlin; [Louis] Lochner arranged interview with [Heinrich] Bruening for Child; according to Lochner, Child not impressed with Bruening, but thinks he was misjudged; should not be disturbed by raw material policy of German government; establishment of monopolies from their point of view essential; reduction of imports of raw materials means Germany must seek substitutes, but that may prove difficult with their best research workers driven out of the country; here in Paris on instructions from Secretary to talk with Ambassador [Jesse Isador Straus] regarding situation in new building; will look into matter carefully and make report to Department; returning to Berlin on May 10, and will leave for Vienna on May 19.

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0371-00

[Moffat, Jay Pierrepont], Washington. To G.S. Messersmith, Vienna., 1934 May 04   [Box 4 F24]

Typed Letter Signed with initials "P.M.", 2 p.

Messersmith's dispatches regarding trade agreement with Germany very helpful; after conference with [William] Phillips, [Francis B.] Sayre, and [Herbert] Feis, decided to show dispatches in confidence to [George N.] Peek in view of press reports (erroneous) that he would recommend extension of credits to Germany to finance a cotton-Rhine wine exchange; [Ambassador Hans] Luther comes regularly to urge immediate commercial negotiations, but Secretary puts him off; have been urging [Wilbur J.] Carr and [Thomas M.] Wilson to select Messersmith's successor in Berlin, but no obvious candidate among those under consideration; health, finances, language play important role.

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0372-00

Phillips, William, Jr., Washington. To G.S. Messersmith, Vienna., 1934 May 10   [Box 4 F24]

Typed Letter Signed, 1 p.

[Douglas P.] Miller's memorandum on general situation in Germany splendid work; Messersmith's observations on economic and financial situation in Germany extremely important, but wonders crisis will come as rapidly as predicted; Germans have extraordinary staying powers.

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0373-00

Phillips, William, Jr., Washington. To G.S. Messersmith, Vienna., 1934 May 11   [Box 4 F24]

Typed Letter Signed, 1 p.

Messersmith's letter of April 27 gives interesting insight into change taking place in effectiveness of present German regime; pendulum beginning its backward swing; sorry Department will no longer have Messersmith's reports directly from Berlin.

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0374-00

Messersmith, G.S., Vienna. To Ambassador William E. Dodd, Berlin., 1934 June 02   [Box 4 F24]

Typed Letter Copy, 3 p.

German Minister [Karl] Rieth seems intelligent, but does not express his own opinions, only those of the National Socialist Party; according to Rieth, Austrian-German problem purely an internal one and if other countries let them alone they could resolve their difficulties; any arrangement Germany makes will mean loss of independence for Austria; Italy stepped in and saved situation for Austria once and Italian influence here strong, but not such influence as would cause trouble; has had talks with Chancellor [Engelbert] Dollfuss and President [Wilhelm] Miklas; both very cordial; present government sees necessity for close economic relations with Germany, but not if the price is her independence; bombing outrages thought to have been planned in Germany; rumor spread that Austrian situation is dangerous to prevent summer tourist travel here, aggravate economic condition, and increase discontent and opposition to government; hopes to close lease for house next week.

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0375-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1934 June 06   [Box 4 F24]

Typed Letter Copy, 6 p.

Left Berlin on May 19 and arrived Vienna May 20; found house which will suit admirably, but needs repairs and renovation; new rent allowance a relief; glad U.S. giving no moral or material support to present regime in Germany; situation developing rapidly there; cannot say how long regime will last; even when change comes, so much damage has already been done that Germany will be a long time recovering; had several conversations with Chancellor [Engelbert Dollfuss] and President [Wilhelm Miklas] and was well received; they speak only German and were pleased not to have to use interpreter; Chancellor fears Germany may take some provocative action against Austria in near future; object of bombing outrages to make it appear Austria unsafe for tourists; economic situation in Austria somewhat better, but still precarious; immediate danger internally the ambitions of [Ernst von] Starhemberg but Vice-Chancellorship may satisfy him for time being; Betty [White] here for a few days with daughters of Countess Scheer-Thoss.

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0376-00

[Geist, Raymond], Berlin. To Jay Pierrepont Moffat, Washington., 1934 June 09   [Box 4 F24]

Typed Letter Copy, 9 p.

Copy to Messersmith. Continuing the reports previously sent by [G. S.] Messersmith; Germany getting more deeply into financial hole; Communism increasing; workers disillusioned with present regime, which they now believe will not last and will be succeeded by military government; unemployment decreased, but no indication of prosperity; women removed from jobs to make way for men; thousands employed by public works, and business and industry practically forced to take additional employees at the expense of the wage scale; Germans who have money are panic buying now for fear of later shortages; according to report, leaders of Reichwehr met recently at Bad Neuheim and laid plans for taking over government when situation becomes critical; Goering, who is against radical tendencies shown by other Party leaders, is expected to go over to the military; struggle between [Ernst] Roehm and Reichswehr; Roehm wishes S.A. incorporated in army, but Reichswehr opposes and has so far been successful; doubts military will take over; it would have situation too precarious to deal with; fanatical enthusiasm of youth is Nazi's most stable asset; staying power of regime depends upon economic recovery, but leaders may make desperate military effort to break Germany's boundaries; importation of rawstuffs a government monopoly; shortage of raw materials a handicap to industry; if regime can create a strong Germany it will rearm and wage war against Europe; Nazis bending every effort to combat depression; conservative leaders [Kurt] Schmitt, [Ludwig] von Krosigk, and [Konstantin] von Neurath fighting to stop radicalism and to keep Jewish question in background; gravity of situation reflected in treatment of prisoners; German people as a whole do not share anti-Semitism which Nazis advocate; everything going well in office; has loyal support of colleagues and staff; enjoys splendid relations with Ambassador [William E. Dodd] and Embassy staff; separation from [G. S.] Messersmith a blow; had become devoted friends.

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0377-00

Messersmith, G.S., Vienna. Despatch No. 20 to Secretary of State [Cordell Hull], Washington., 1934 June 12   [Box 4 F24]

Typed Document Copy, 11 p.

Made courtesy calls on arrival at Austrian Legation; called on Chancellor [Engelbert] Dollfuss, who was cordial, frank, and direct; asked searching questions about German situation, showing he was well-informed; believed National Socialist regime losing prestige; but still afraid Germany might attempt putsch against Austria; assured Messersmith Austria would attempt to meet all her obligations; following day, presented Letter of Credence to President [Wilhelm] Miklas; called on German Minister, Dr. [Karl] Rieth; had been member of German Center Party; was informed that Rieth"bought" the privilege of remaining in the Foreign Service; Rieth wealthy and educated, but tactless; said he considered the German-Austrian problem as purely internal; other calls were made on Mr. [Zdenek] Fierlinger, Czechoslovak Minister, Mr. [Gabriele] Preziosi, Italian Minister, Sir Walford Selby, British Minister, Mr. Gawronski, Polish Charge d' Affaires, Mr. A.M. Petrovsky, Soviet Minister and Mr. [Gabriel] Puaux, French Minister.

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0378-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1934 June 13   [Box 4 F24]

Typed Letter Copy, 6 p.

Freie Presse reports [Ernst Franz Sedgwick] Hanfstaengl going to U.S. to attend Harvard class reunion; Hanfstaengl said Messersmith unfriendly to German government and German people; questioned German friend of Messersmith to learn names of Messersmith's other German friends; hoped to hear Messersmith quoted as critical of German government and provide excuse to ask for his recall; friend gave Hanfstaengl no information; friend introduced to Hanfstaengl by Mr. Pierce, President of American Chamber of Commerce in Berlin, who was present at interview; Pierce has connection with General Electric, is somewhat unbalanced and dominated by wife, who is a violent anti-Semite; if his company knew of incident he would lose job; Hanfstaengl can be affable and entertaining, but he is totally unreliable; Martha and William [Dodd] see him constantly; believe such association not in our best interests, but hesitate to advise Ambassador that his children are behaving indiscretely; Hanfstaengl not of much importance in government or Party, but Hitler fond of him and keeps him close by; he should be given cool treatment in America; treating him with consideration will not help U.S. interests in Germany or U.S. prestige.

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0379-00

Messersmith, G.S., Vienna. Despatch No. 24 to Secretary of State [Cordell Hull], Washington., 1934 June 14   [Box 4 F24]

Typed Document Copy, 6 p.

(2 copies pp. 3 and 4 missing.) Resume of conversation with well known American correspondent [unnamed]; Mr. X particularly well informed concerning situation in Germany where he has close contacts inside and outside of present government; X had talked with [Engelbert] Dollfuss before coming to Legation; Dollfuss informed X that he had personal note from Mussolini saying he need not fear the meeting Mussolini was to have with Hitler, and assuring Dollfuss that he would make no arrangement with Hitler which would endanger Austria's independence; X said meeting between Mussolini and Hitler had been arranged through request of German sources, chiefly Franz von Papen and Konstantin von Neurath, who thought Mussolini might make Hitler listen to reason; on question of Austria and Jews Hitler entirely unchanged; financial situation rapidly growing worse in Germany; according to X present German government completely unreliable.

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Geist, Raymond, Berlin. To G.S. Messersmith, Vienna., 1934 June 14   [Box 4 F24]

Typed Letter Signed, 4 p.

Reports on political and economic situation in Germany; Hitler interviews Mussolini at Mussolini's request; German government completely unreliable; falsified quota figures; and Foreign Office admitted it; much unrest; drouth has caused 25 percent crop loss; military activity goes on; work at office unusually heavy; visited Ambassador Dodd; quotes Dodd as saying Ministership of Austria most difficult to fill, and that only a careful man like Messersmith might avoid the extremes of influence, such as Dollfuss on one hand and the German Nazis on the other;

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0381-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 June 18   [Box 4 F24]

Typed Letter Copy, 17 p.

Saw President [Wilhelm] Miklas and Chancellor [Engelbert] Dollfuss within few days after arrival in Vienna; Chancellor small in stature, but intelligent, with pleasing personality and frank, engaging manner; well-informed about situation in Germany; fears Germany may take some overt action against Austria; thinks German repudiation of debts may have repercussions in Austria; Dollfuss had insisted that Austria meet her obligations, but some Austrians grumbling that if larger and stronger countries do not pay debts, Austria should not either; President Miklas much older and less attractive, but intelligent; does not play important part in government; met all the Ministers; impressed by their loyalty to Chancellor; Prince Ernst von Starhemberg, Vice Chancellor may be danger as he is very ambitious; he is, however, attached to Chancellor, and Vice-Chancellorship may satisfy him; have met colleagues and find them a fair lot; British Minister Sir Walford Selby, has wide acquaintance with European statesmen and is well acquainted with situation in Austria; Italian Minister, [Gabriele Preziosi] plays important role here at present and seems intelligent and active; French Minister [Gabriel] Puaux friendly and capable; for intelligence, capacity, and knowledge of situation, Czech Minister, [Zdenek] Fierlinger the strongest of the ministers; Soviet Minister, [A. M.] Petrovsky, quiet and reserved, but a strong man; German Minister, [Karl] Rieth wealthy and intelligent, but lacking in tact; Rieth ambitious, wants to be Ambassador, apparently at any price, and has become willing instrument of Nazi Party; Rieth explained that German-Austrian question was an internal one and if other countries would stay out of it the matter would be settled quickly; he made very tactless speech at luncheon given by American and English correspondents, with statements which all present knew were contrary to fact; Rieth said his biggest task was to build up trade relations with Danubian states, but he was hampered by strained relations between Austria and Germany; economic and financial situation in Austria somewhat improved, though still precarious; recent reorganization of National Bank has helped; unemployment down about 40,000 from last year; interest on guaranteed loans to Austria too high; burden should be eased by reducing interest or lengthening period of amortization; budget now somewhat out of balance, because of expenditures made necessary by Nazi bombing outrages; new taxes out of the question; internal political situation firmly settled and not directly menaced; since conversations in Venice between Hitler and Mussolini, atmosphere partially cleared; [Hubert Renfro] Knickerbocker, who seems to have gotten his information from one of Hitler's secretaries, said Hitler agreed (1) to guarantee Austria's independence (2) to call off the Nazi terrorist behind it - and (3) to lift the 1000 mark visa fee, if Dollfuss would agree to take several Nazis into his Cabinet; much of the bombing was to frighten tourists away from Austria; if Dollfuss is compelled to take Nazis into his Cabinet his government will be weakened; according to people recently in Berlin, economic situation worse in Germany; German crop suffered from drouth; [Ernst] Roehm and Reichswehr still at odds over admission of S.A. into army; Goering now inclined to associate himself with Right element; church controversy has not abated; anti-Semitic program continues; friend of [Heinrich] Brüning attended dinner given by Americans for Messersmith before he left Berlin; told Brüning's friend that Brüning should leave Germany; has since learned that Brüning went to England; [First Secretary Alfred] Kliefoth a great help; delighted that [George Howard] Gray assigned to Vienna; found suitable house, but it needs renovating; can move in about a month; in meantime staying at Bristol Hotel.

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0382-00

[Moffat, Jay Pierrepont], Washington. To G.S. Messersmith, Vienna., 1934 June 26   [Box 4 F24]

Typed Letter Signed "P.M.", 3 p.

Twenty-one page memorandum from Germans attempts to justify their moratorium [on debt payments] on grounds that her efforts to pay were in vain because of policies of her creditors; [Ambassador Hans] Luther literally demanding U.S. start commercial negotiations with Germany; [Rudolf] Leitner alleged Germany could not pay debts except to countries where Germany had active trade balance; Secretary [Cordell Hull] replied that to use debts as a pistol to reverse normal economic trends was absurd; doubts that much of definite nature took place at Hitler-Mussolini meeting; German Liberal, living outside Germany and recently returned from Vienna, asked an old Austrian friend, "You have three strong men in this country, [Engelbert] Dollfuss, [Emil] Fey, and [Ernst von] Starhemberg.... which one could arrest the others," to which the friend replied, "If the answer were clear, there would be only one of them"; have had several enlightening letters from [Raymond] Geist.

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0383-00

[Moffat, Jay Pierrepont], Washington. To G.S. Messersmith, Vienna., 1934 June 27   [Box 4 F24]

Typed Letter Signed "P.M.", 4 p.

Harvard Class Secretary (1909) came to State Department to see if [Ernst Franz Sedgwick] Hanfstaengl could be prevailed upon not to attend class reunion; Department would see that he was protected in landing, but after that his protection was a matter for State and local authorities; Vice President of Harvard called and another member of the class came with suggestion that German Embassy ask Hanfstaengl to come to Washington for consultation instead of going to Boston; this would only shift the locus and not solve the problem; next, German Embassy requested customs courtesies for Hanfstaengl, and finally protested against report that the Dickstein Committee was going to ask Hanfstaengl to appear as witness; Luther was told that in coming to this country and accepting its hospitality, Hanfstaengl subjected himself to our laws; fortunately Committee decided against calling him; visit thus far gone off without incident, but there are still ten days to go; Hanfstaengl has not been guilty of indiscretion or sought publicity; now visiting friends on North Shore.

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0384-00

Messersmith, G.S., Vienna. To Raymond Geist, Berlin., 1934 June 28   [Box 4 F24]

Typed Letter Copy, 4 p.

In meeting at Stra [Italy] Mussolini told Hitler that independence of Austria would be maintained; Dollfuss met with [Jean Louis] Parthout, French Foreign Minister at Vienna station and was assured of France's support in maintaining Austrian independence; Hitler has denied German responsibility for bombings in Austria, but there is evidence to the contrary; economic situation in Austria is better, but political situation not so satisfactory; believes Dollfuss government in no present danger; rumored that Hitler's price for letting Austria alone was two National Socialists in Austrian Cabinet; Soviet minister in Vienna convinced that Germany already has a secret agreement with Japan and possibly with Poland; wonders what the Ambassador [Dodd] meant by saying he, Messersmith, should not take sides.

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0385-00

Messersmith G.S., Vienna. To William Phillips, Washington., 1934 July 05   [Box 4 F24]

Typed Letter Copy, 8 p.

Does not wish to trespass on field of Ambassador [William E.] Dodd but can throw some sidelights on recent purge of Nazi Party in Germany because of intimate knowledge of men involved; does not believe there was plot against government as official communiqués assert; weight of evidence is that it was coup by Hitler, Goering, and Goebbels to save Party and their own situation by eliminating dissenting elements; hundreds dead in two-day purge, including General [Kurt] von Schleischer as warning to Reichswehr, [Ernst] Roehm, [Karl] Ernst, and [Edmund] Heines to keep the S.A. in order, [Erich] Klausner, leading Catholic, to intimidate the church, and Gregor Strasser as warning to intellectuals and middle classes; arrest of [Franz] von Papen and murder of his associates was a warning to [Alf] Hugenberg and the industrialists; impossible to imagine these divergent characters in one plot; with not even a pretense of court martial or trial, the deaths were murders, not executions; shows extent to which Hitler and associates will go to gain ends.

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0386-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1934 July   [Box 4 F24]

Read with interest account of Messersmith's first four weeks in Vienna; liked picture drawn of Chancellor [Engelbert Dollfuss]; description of German Minister [Karl Rieth] shows him characteristic of his kind; wonders if efforts to spike tourist business in Austria have been effective; [Edgar L. G.] Prochnik, [Austrian Minister to U.S.] does not think so; no propaganda in U.S. to steer tourists away from Austria.

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0387-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1934 July 11   [Box 4 F24]

Typed Letter Copy, 5 p.

Among those murdered in Germany on June 30 were General Otto von Lossow [report of his death an error], Dr. Gustav von Kahr, and former Police President in Munich, who were responsible for putting down Hitler putsch in 1923; Hitler had promised that "heads would roll" when he come into power; Goering himself used June 30 to get rid of a few people not on common slate; most despicable of the Triumvirate is Goebbels, who turned against his own friends and intimates to maintain his position; in their haste to defend themselves before the German people, spokesmen for the government let out more of the truth than they intended; Germany paralyzed at present, even perpetrators of murders appalled and opposition elements petrified by fear; German character is cruel and callous, but there is also a decent element, which however has shown a docility not admirable; if Reichswehr takes over government it will be only temporary; generals have no desire to run government themselves; delighted that [Raymond] Geist has been sending valuable information; hope he will be considered for advancement in grade; [Cecil Wayne] Gray arrived and glad to have him; comfortably settled in new house; going to Budapest tomorrow to see [John Flournoy] Montgomery before he goes home; will be glad to meet Mrs. [Robert McCalla] English; have met Mrs. Moffat's other sisters but not Mrs. English.

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0388-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 July 14   [Box 4 F24]

Typed Letter Copy, 10 p.

[Engelbert] Dollfuss reconstructed Cabinet, taking over Ministries of Security and War, as well as Foreign Affairs and Agriculture, himself; Major [Emil] Fey relieved of duties as Minister of Security but will remain in Cabinet as Minister without portfolio; Egon Berger-Waldenegg appointed Minister of Justice; Stefan Tauschitz, present Austrian Minister to Germany, to become Under Secretary of State in new Cabinet; position of Dollfuss strengthened by changes; Department may hear rumor that [Anton] Rintelen will replace Tauschitz as Minister to Germany; should not be interpreted as meaning closer repprochement with present German government; may be clever move to eliminate him from Austrian politics, where he has been a disturbing influence; [John Flournoy] Montgomery going to U.S. and will report on Hungarian situation; Montgomery gave nice party on Danube recently to which he invited leading members of government; went down for it late in afternoon, and returned to Vienna next morning; enjoyed seeing splendid combined offices in Budapest; Hungarians disillusioned with Germany.

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Items 0389-0404   [Box 4 F25]

0389-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1934 July 17   [Box 4 F25]

Typed Letter Copy, 9 p.

Developments in Germany following inevitable course; Goebbels' speech on foreign press impudent and mendacious; Hess' speech, meant to be peaceful effort, bristled with threats; Goering's recent declaration that the law and Hitler's will are one an indication of no change; so-called interview Hitler gave to [Drew] Pearson believed manufactured by Propaganda Ministry; doubts Pearson ever saw Hitler; Hitler in speech before Reichstag failed to mention victims of June 30 purge other than S.A. and S.S. members; so much for his professed candor; England, France, and even Italy likely to get together now; present German government cannot withstand political shock of complete isolation coupled with economic difficulties; if Reichswehr acted quickly, could probably eliminate Hitler regime with little bloodshed and put new government into power; a leading English correspondent in Europe has just arrived after ten days in Germany; he had talked with the Rothermere Chief correspondent in Berlin who told him that the future policy of the [Daily] Mail would be definitely critical of present regime in Germany and that Rothermere was dropping [Sir Oswald] Moseley; same correspondent told him about conversation with British Ambassador, Sir Eric [Phipps] who seemed impressed by Hitler's action [of June 30] and seemed to read into it good things which none of the correspondents could see; Phipps appears to be poorly informed; according to this correspondent, right thinking Germans hope England will not supply Germany with credits or raw materials, for such help would only bolster present regime; correspondent assigned by his paper to interview sister of [Ernst] Roehm and daughter of [Gustav] von Kahr, two victims of June 30 purge, but found both women watched by police and not allowed to talk; Germans now claim that report of death of [Erich] Clausener, i.e. Klausner, a mistake, but according to reliable informant who was in same building, two S.S. men entered Klausner's office, asked Klausner to identify himself and then shot him; believe he was killed not so much because he was a leading Catholic, but because he was expert in transportation matters and likely to be included in any new government; situation in Austria much better in some respects, but not all is serene; Heimwehr as unpopular with army as S.A. is with Reichswehr; Dollfuss himself opposed to private army such as Heimwehr.

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0390-00

Messersmith, G.S., Vienna. Despatch No. 65 to Secretary of State [Cordell Hull], Washington., 1934 July 26   [Box 4 F25]

Typed Document Copy, 17 p.

Reports on abortive attempt of Nazis to overthrow Austrian government and on circumstances surrounding death of Chancellor [Engelbert] Dollfuss; Nazis seized radio station and forced broadcaster to announce that entire Cabinet had resigned; other Nazis invaded Foreign Office where Cabinet was meeting; more than one hundred occupants of building held as hostages; police and Heimswehr [Home Guard] surrounded building; Nazis offered to release hostages unharmed in return for safe conduct to German border and asked that [Karl] Rieth, German Minister, be present to witness agreement; Rieth arrived, agreement was made, and hostages released, but when authorities discovered that Dollfuss had been mortally wounded they were released from agreement and over a hundred Nazis were imprisoned; believes Nazis accomplished their major purpose in assassination of Dollfuss; in absence of Vice-Chancellor [Ernst] von Starhemberg, [Kurt] Schuschnigg named by President [Wilhelm] Miklas to take over temporarily.

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0391-00

Hitler, Adolf. To [Franz] von Papen, [Bayreuth], 1934 [July 26]   [Box 4 F25]

Typed Letter Copy, 1 p.

Enclosed with No. 393. Translation of letter appointing von Papen Minister to Austria.

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0392-00

Messersmith, G.S., Vienna. Despatch No. 66 to Secretary of State [Cordell Hull], Washington., 1934 July 29   [Box 4 F25]

Typed Document Copy, 10 p.

Reports further developments in Nazi attempt to take over government; Vienna quiet, but clashes in other parts of Austria between Nazis and police troops, and Heimswehr; martial law declared; Vice-Chancellor [Ernst] von Starhemberg returned to Vienna today and took over duties as acting Chancellor; prisoners taken at Foreign Office subject to trial by military court; Dr. [Anton] Rintelen, Austrian Minister to Rome, implicated in plot and attempted suicide; called on President Miklas and Dr. Stefan Tauschitz, Under Secretary for Foreign Affairs, to offer condolences of U.S. government on death of Dollfuss and attended funeral; physician who examined body said he died from loss of blood and that neither of the two wounds would have killed him, had he had immediate medical attention; Rieth recalled to Berlin and German government indicated Nazi prisoners would not be allowed into Germany if they were brought to border; leaders will without doubt be sentenced to death.

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0393-00

Messersmith, G.S., Vienna. Despatch No. 70 to Secretary of State [Cordell Hull], Washington., 1934 July 30   [Box 4 F25]

Typed Document Copy, 10 p.

Enclosure: See No. 391. Reports further on Nazi attempt to overthrow Austrian government; two Italian army corps massed on Austro-Italian frontier, ready to aid Austrian government; Jugoslav minister feared Italy would use this occasion to attack Jugoslavia and felt Austrian government should appease Nazis by taking some of them into government; Frau Dollfuss visiting Mussolinis' family at time of husband's death; Mussolini himself broke news to her and placed government plane at her disposal for return to Vienna; Mussolini telegraphed Prince [Ernst] von Starhemberg same day assuring him Italy stood ready to aid Austria in maintaining her independence; whatever else may be said of Mussolini, believes it was his prompt action which averted an international situation; convinced that Minister [Karl] Reith as well as others in German government knew and approved of plot if they did not instigate it; Rieth replaced in Vienna by [Franz] von Papen; Hitler's letter to von Papen, published on July 26; translation enclosed; letter obviously insincere; Hitler known to have said he "could not bear von Papen"; indignation of Austrian people over manner of Dollfuss' death may bring different factions closer together and prepare way for internal political peace.

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0394-00

Hathaway, Charles M., Jr., Consul General, Munich. To Ambassador William E. Dodd, Berlin., 1934 August 01   [Box 4 F25]

Typed Letter Copy, 5 p.

Hitler in Bayreuth when news came through of Dollfuss' murder and remained there; Hitler reported to have told friend that Mussolini had advised him to leave Austria alone; Hitler's dilemma - if he doesn't go ahead with plans for Austria he loses prestige with National Socialist Party and if he does he rouses the ire of Italy, France, and Britain, whom he is not yet ready to tackle; Austrian government proceeding slowly with trials of arrested men; government wishes to gather as much evidence as possible about others involved in plot, particularly German participation; Hitler already making effort to appease by recalling [Karl] Rieth from Vienna and replacing him with [Franz] von Papen; von Papen's task (1) by intervention, save as many of Hitler's Austrian followers as possible from being shot (2) coax Austria into allowing Austrian Legionaries and other fugitives to return to Austria and (3) devise some new form of organization into which former Nazis can be taken since Nazis have now been outlawed in Austria.

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0395-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1934 August 01   [Box 4 F25]

Typed Letter Copy, 2 p.

Enclosure: See No. 1. Calls to Moffat's attention dispatches No. 65, 66, and 70 and letter to William Phillips which go by same pouch as this letter; not satisfied with completeness of picture sent, but accurate information difficult to obtain; much misinformation and exaggeration reached outside world between July 25 and July 29; enclosing extract from memorandum written by Sir Eyre Crowe in 1907 when he was in Foreign Office in London; Crowe was brought up and educated in Germany, and knew German philosophy and German character better than most.

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0396-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 August 01   [Box 4 F25]

Typed Letter Copy, 16 p.

Recounts events of July 25 leading to death of Dollfuss and of days following; radio station taken by Nazis and announcement made that Dollfuss government had resigned and that [Anton] Rintelen was forming new government; Foreign Office, where Cabinet meeting was being held, occupied by 150 Nazis, Dollfuss shot, and other occupants of building held as hostages; building quickly surrounded by police and troops; Nazis, realizing putsch had failed, asked for safe conduct to German frontier as price for delivery, unharmed, of hostages; authorities, not knowing Dollfuss was dead, agreed, and Nazis asked for [Karl] Rieth, German Minister, to witness agreement; on discovery of Dollfuss' death, authorities, no longer bound by agreement, captured and imprisoned Nazis; expected revolt of population did not occur; putsch undertaken with knowledge of and likely at instigation of German government; Rieth recalled and [Franz] von Papen appointed as his successor; [Kurt] Schuschnigg named new Chancellor; Rintelen arrested and attempted suicide, but expected to recover; Austrian Legion massed in Bavaria on Austrian border; prompt action by Mussolini in placing two corps of Italian troops on Austro-Italian border probably prevented Nazi invasion; Austria now quiet, though under martial law; some clashes between Nazis and Heimwehr, supported by Austrian troops; leader of Nazi putsch and man who shot Dollfuss tried and executed; new government to continue Dollfuss policy.

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0397-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 August 09   [Box 4 F25]

Typed Letter Copy, 8 p.

Unity of purpose and good feeling in Schuschnigg Cabinet; murder of Dollfuss and knowledge of danger threatening country have submerged personal rivalries and ambitions; Prince [Ernst von] Starhemberg and [Emil] Fey committed to cooperating with Schuschnigg; [Franz] von Papen expected to arrive next week; no illusions about Hitler's intentions or faith to be placed in von Papen; he will get cool reception here; Hitler in interview with Ward Price of [London] Daily Mail said question of Austrian independence not an actual one, and that Austrian people should have opportunity to express their will in an election; British colleague [Sir Walford Selby] confirmed idea that his government is aware of Hitler's intentions; even trusted advisers such as [Konstantin] von Neurath, [Kurt] Schmitt, and [Wilhelm] Keppler cannot discuss with him Austrian or Jewish questions; no question now about how Rome, London, and Paris consider present German regime and its responsibility for terrorism in Austria and murder of Dollfuss; Austrian government has made no official statement fixing responsibility, but Schuschnigg and von Starhemberg in speeches at Dollfuss memorial service indicated guilt of Germany; Hitler will continue his efforts, but perhaps more subtly; Austrian Legion still on Austro-German frontier and propaganda over Munich radio continues; estimated 150,000 thronged square to attend Dollfuss memorial service; Austrian population clearly behind government; with Italian troops on border ready to move if Germany does, only a spark can start a blaze; Yugoslavia as fearful of Italy as of Germany and some Yugoslav elements have been in touch with Austrian Nazis; reported that Austrian Nazi refugees in Yugoslavia being fed and clothed by German minister; establishment of responsible government in Germany would solve most European problems; if Reichswehr moves against Hitler government soon change can be effected with little trouble but if it delays, change will be accompanied by greater bloodshed and internal disorders.

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0398-00

Geist, Raymond H., Berlin. To Jay Pierrepont Moffat, Washington. Copy to G.S. Messersmith, Vienna., 1934 August 10   [Box 4 F25]

Typed Letter Copy, 8 p.

Results of execution of June 30 are (1) S.A. suffered shock to morale (2) presence of the "terror" impressed upon large mass of inhabitants (3) prestige of secondary leaders diminished (4) Hitler, Goering, and Goebbels emerge as triumvirate; minority of well informed Germans view assassination of Dollfuss with revulsion, but Nazi leaders have convinced general public in Germany that assassination was result of Dollfuss' trampling on legitimate political aspirations of Austrian people; no change in Hitler's intention with regard to Austria; appointment of [Franz] von Papen to Austria will result in no good for either country; Austrian Legion in Germany has not disbanded and propaganda continues; according to Karl von Wiegand, von Papen's efforts in Austria will be directed toward convincing Austrián government that future of Austrian people indissolubly bound to that of German, and to freeing Austria from Italian influence; general opinion in Germany vacillates between desire to regain prestige and place in the sun and desire to resume normal relations with other countries for sake of trade; German people generally susceptible to pan-Germanic idea and military aggrandizement; death of von Hindenburg and Hitler's coup d'etat by which he assumed command of armed forces have had profound effect; many Germans try to attribute to Hitler the best motives and to see his present position as a guarantee of the nation's strength, but events of June 30 have dampened their confidence and enthusiasm; 200,000 S.A. being trained in East Prussia by Reichswehr officers and transformed into real army; economic and financial situation now entirely in hands of [Hjalmar] Schacht, but still precarious; Germany's rearmament will continue at all costs; National Socialism as political ideal built largely around person of Hitler; only opposition is whispered criticism; discontent on all sides - farmers, labor, industry, army; question now as to who will become Vice Chancellor, leading candidates being [Hermann] Goering and [Werner] von Blomberg; uncertainties of situation lie not with mass of people but with intrigues among leaders.

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0399-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 August 14   [Box 4 F25]

Typed Letter Copy, 8 p.

Present Austrian government as good and strong as can be expected under existing circumstances; Italy, France, and England stand behind declaration that Austrian independence must be maintained; internal situation not good; no parliament, and large sections of population have no voice in government; Social Democrats excluded from government and many of them in prison; believe government may adopt conciliatory policy, release many of those held and eventually take some of them into government; financial situation no worse than last year but still precarious; many very poor and many unemployed; [Franz] von Papen flying here today; will probably make trouble; conflicting reports as to Austrian Legion being dissolved and [Theo] Habicht and [Alfred] Frauenfeld [leading Austrian Nazis] being in prison; lull in radio propaganda doesn't mean Hitler has changed his intentions toward Austria; recent talk of return to Monarchy in Austria largely newspaper speculation; rumor that Mussolini considering placing Prince of Hesse on Austrian throne surely without foundation; Prince intellectually below average and without morals; Austrian army increased to 30,000, maximum limit set by treaty; Austria quiet; but guards, police, and Heimwehr much in evidence; foreign tourists coming in large numbers, but too late in season to help economy much; Herbert Feis expected tomorrow.

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0400-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1934 August 15   [Box 4 F25]

Typed Letter Signed, 2 p.

Acknowledges Messersmith's letters of July 14 and Aug. 1; of particular interest was account of Nazi putsch of July 25 and assassination of [Engelbert] Dollfuss; glad Messersmith was on the spot to observe and comment.

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0401-00

Hull, Cordell, Washington. To G.S. Messersmith, Vienna., 1934 August 15   [Box 4 F25]

Typed Letter Signed, 1 p.

Interested in dispatch No. 60 concerning establishment of Information Service for diplomatic and consular officers; reaction of experienced officer such as Messersmith valuable in attempt to make service conform to desires of Foreign Service Officers; hopes Messersmith will continue to offer criticisms and suggestions.

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0402-00

Hickerson, John, Washington. To G.S. Messersmith, Vienna., 1934 August 16   [Box 4 F25]

Typed Letter Signed, 2 p.

In absence of [Jay] Pierrepont Moffat and [William] Phillips, read Messersmith's letters of July 11, 14, and 17 addressed to them; showed letters to [Rudolf E.] Schoenfeld who has first handling of German and Austrian affairs for Department; also in Phillips' absence received letter of Aug. 1 summarizing events in Vienna of July 25 and commenting upon their significance; took original of this letter immediately to Secretary [Cordell Hull]; Phillips returned yesterday and letters were turned over to him; upon Moffat's return next week, will see that letters are called to his attention; comfort to Department to know Messersmith was in Vienna when unfortunate incident occurred.

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0403-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 August 17   [Box 4 F25]

Typed Letter Copy, 6 p.

Hitler may pretend to steer a more moderate course for economic reasons, but Nazi policies have not and will not change; Hitler talks peace, but rearming at tremendous rate; many well-meaning people, even from U.S., go to Germany for brief visit and get entirely incorrect picture; talked this morning with Senator [Joseph T.] Robinson who has just been in Germany and had talk with Hitler; Robinson not in sympathy with National Socialism but Hitler seems to have convinced him of his sincerity in desiring to follow more moderate course; German government may be planning certain declarations and actions to get out of economic and financial impasse; prominent Jewish friend from U.S. recently visited Germany and was told that government was changing its attitude radically on Jewish question; no faith should be placed in change of attitude either on Jewish question or Austrian question; government may change to more indirect tactics, but does not indicate change of attitude or policy; death of President Hindenburg creates serious situation; as long as he was alive army's oath of allegiance was to him and army might have taken action against Nazis without breaking oath; now they must swear allegiance to Hitler; situation similar to one in Argentina [in 1928-1929] when Argentine army wished to overthrow the corrupt [Hipólito] Irigoyen government but were prevented for months because of oath of allegiance; endeavor may be made to maintain German regime through following more moderate policy and yet retain Hitler; nothing along that line spells safety and peace for Europe; best policy for U.S. is to continue negative attitude - no moral support for Germany, no credits, and no trade agreement.

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0404-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 August 18   [Box 4 F25]

Typed Letter Copy, 6 p.

Had conversation this morning with German friend who is leading industrialist; according to him, economic and financial situation steadily becoming worse, but time not yet ripe for further developments; around periphery of Germany people gradually coming to their senses, but in central Germany hold of government still strong; greatest effort made there to increase industrial activity and there concentrated rearmament work; purge of June 30 helped to waken people; von Papen on list to be eliminated, but saved through intervention of Hindenburg; [Baron Werner von] Alvensleben, aide to von Papen, saved by Goering after threat by Alvensleben's wife that if either she or her husband was harmed it would become known that Hitler had approached her husband directly and discussed with him his willingness to murder Dollfuss; friend said Hitler afraid of assassination and has himself heavily guarded; [Hjalmar] Schacht, he said, could not be depended upon; in many respects a good banker, thought highly of himself, but now completely servile to Party; [Kurt] Schmitt now entirely out of government, a physical and partially mental wreck; [Wilhelm] Posse wished to resign but was persuaded to stay; convinced by friend that statement made in last letter to Department regarding Reichswehr's oath of allegiance to Hitler was mistake; Reichswehr would hold such oath lightly, and are only waiting for time to be riper; Goering strong with Reichswehr, and is said to be ready to go widely conservative; Reichswehr had complete charge of Hindenburg funeral; presence of Party leaders merely "tolerated"; friend emphasized that Germany should be given no help - either credits or raw materials, because that would only keep the present regime in power longer; [Rudolf] Hess ambitious for Vice Chancellorship, but friend said he would be very dangerous; Hess and Goebbels determined on further killings of decent and conservative people; in whole conversation friend did not mention Communism; Communism is the bugaboo which Nazis claim is the alternative to themselves in Germany.

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Items 0405-0423   [Box 4 F26]

0405-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1934 August 21   [Box 4 F26]

Typed Letter Copy, 9 p.

Has authority to send pouch every two weeks, but during times of tension thinks legation should send pouch each week; hopes Department doesn't think he delayed too long sending telegram concerning Nazi putsch and Dollfuss assassination; delayed only long enough to get facts straight; delighted to see Department's circular authorizing Chiefs of Missions to travel in their districts; particularly interested in Department's circular on telegraphic reports of unusual political events; was able to establish contacts in worthwhile places rapidly; members of the government very frank and friendly; present government realizes utter helplessness against Germany without support of rest of Europe, but determined not to yield on any point involving Austrian independence or interference in her internal affairs; Austrians believe that in spite of joint declaration of England, France, and Italy, Italy is the one they can depend on for decisive action; Italian, French, and English Ministers in Austria act in close accord; events of July 25 consolidated Austrian opinion against political union with Germany, but government still lacks sufficiently wide popular support; improvements in economic situation will help to strengthen government; [Franz] von Papen arrived; no one here has confidence in his mission and government determined not to negotiate with him; he will doubtless try to undermine Italian influence; newspapers putting too much stress on visits of Schuschnigg to Budapest and Florence and of Starhemberg to Rome; believes exchanges during visits of no major importance; newspaper talk of restoration [of monarchy] mere speculation; government proceeding against the National Socialists who took part in putsch but trials are conducted fairly; number of death sentences small compared with nature of offense; death sentences seem to have good effect; bombing outrages have ceased; thinks Austria can expect brief lull, but situation remains unchanged and dangerous; Hitler, in desperate straits, may seek way out through a foreign adventure, perhaps on the Saar question or Austria; enjoyed seeing Herbert Feis here; had Ambassador [Breckinridge] Long and Senator [Joseph T.] Robinson to lunch; both left that afternoon to join Mr. Barouch's [Bernard Baruch] hunting party in Czechoslovakia.

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0406-00

Moffat, [Jay] Pierrepont, Washington. To G.S. Messersmith, Vienna., 1934 August 22   [Box 4 F26]

Typed Letter Signed, 4 p.

Was on leave July 23 to Aug. 20 so was absent during Vienna crisis of July 25; have read with interest dispatches and letters that arrived during absence; narrow time margin between success and failure of Nazi putsch; immediate Italian action important in forestalling further trouble; impressed by the calm good sense of Austrian population; [Kurt] Schuschnigg still an unknown entity in U.S.; asks that Messersmith send character sketch; Douglas Jenkins, who is to be new Consul General in Berlin has been spending some time in Department going over correspondence from Germany; extent and importance of work of that office have appalled him; impressed, however, of shrewdness of his comments on [Hans] Luther and [Rudolf] Leitner following visit to German Embassy; wife still in Japan visiting her parents [Ambassador and Mrs. Joseph C. Grew].

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0407-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 August 23   [Box 4 F26]

Typed Letter Copy, 8 p.

Wishes to correct statement made about Prince of Hesse in letter of Aug. 14; have been informed that he is above average in intelligence; situation quiet in Austria; hangings and stiff prison sentences following trials of terrorists and those involved in the July 25 putsch have had good effect; Foreign Minister [Egon Berger-Waldenegg] informs that his government convinced little can come of [Franz] von Papen's mission here; von Papen in presenting his letters emphasized that he came as Minister on special mission but President replied that he was being received as Minister accredited in the usual manner; British Military Attaché said he had talked with the German Military Attaché who informed him that Austrian Legion had been disarmed and broken up into small groups; text of Hindenburg will suppressed ; trials of those arrested for complicity in July 25 putsch conducted in fair way; some of the instigators escaped to Germany on evening of July 25; [Anton] Rintelen still in hospital, but under prison guard; no doubt about his guilt; Ambassador [Breckinridge] Long visited last Sunday; asked about possibility of Prince von Starhemberg going to Rome as Austrian Ambassador; has heard nothing of this here and think it unlikely; von Starhemberg probably hopes eventually to be Chancellor, but at present he is wholeheartedly supporting Schuschnigg; basic situation unchanged; Germany still determined to absorb Austria and carry through her political and economic ambitions in Central and Southeastern Europe; Italy opposed, as are France and England; will probably see various actions in Germany directed toward reassuring the rest of the world and toward conciliating increasing internal opposition; Hitler's next move may be to eliminate some of his more radical advisers; going tomorrow to Salzburg for weekend.

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0408-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1934 August 29   [Box 4 F26]

Typed Letter Signed, 1 p.

Read with interest Messersmith's letters of Aug. 14 and 17; sending them to the Secretary [Cordell Hull] who is laid up in his hotel for a few days.

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0409-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 August 31   [Box 4 F26]

Typed Letter Copy, 5 p.

Department has had [Alexander C.] Kirk's telegram regarding meeting in Italy between Mussolini and Schuschnigg; Schuschnigg made it clear that both he and Mussolini should make statement regarding Austrian autonomy to quiet fears that Italy was exercising too great control over Austria's internal affairs; no evidence that Italy has misused her influence in Austria; no doubt question of return to monarchy came up at meeting but consensus is that the question isn't an actual one at present; declarations that no military pact was considered are correct, but do not give whole picture; any military assistance would be a one-sided obligation; assurances given to Dollfuss of Italian military aid in case of German aggression have been repeated to Schuschnigg; informed by Foreign Minister that financial assistance for Austria was badly needed and that matter will be brought before League in Geneva in September; February and July events have cost government much money and thrown budget out of balance; money also needed for public works; believes general attitude will be that further aid to Austria is a necessary investment; maintenance of present Austrian government necessary for European peace; a return to elections and parliamentary government now would only lead to internal chaos; situation quiet at present and no disturbance foreseen for immediate future; a group of Heimwehr who had been called to active duty following July 25 putsch was to be sent home; the men get three schillings a day and their keep while on active duty and refused to go; a scrap ensued in which one officer was killed and several hurt; these private armies are dangerous; [Ernst] von Starhemberg trying to get all these protective organizations into one unit which he is organizing; money to clothe, feed, and house them for the winter is needed; [Hjalmar] Schacht's recent speeches only a prelude to efforts German government will make to break through her isolation; Germany must have credits if she is to survive.

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0410-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 September 06   [Box 4 F26]

Typed Letter Copy, 6 p.

Internal situation in Austria continues quiet; no bomb outrages since July 25; trials of those arrested for participation in [July 25] putsch continue; few hanged, but stiff prison sentences given; some of ringleaders escaped to Germany afternoon of putsch; [Anton] Rintelen still in hospital under guard; his trial may prove embarrassing for government and likely to be delayed for some months; tourist traffic better last few weeks, but season as a whole a disastrous one; business situation no worse; thinks League will look favorably on Austrian request for loan; Austrian Nazi refugees in Yugoslavia causing tension; support of government much strengthened since putsch; government will continue its conciliation policy; but many difficulties ahead; informed by British Minister [Sir Walford Selby] his government disturbed over continued imprisonment of Social Democrats in Austria; government feels it still unsafe to release prisoners who would start at once to work against government; Social Democrat refugees in Czechoslovakia carrying on propaganda campaign directed against Austrian government; Chancellor Schuschnigg meeting situation in capable manner; will send character sketch of him soon.

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0411-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 September 07   [Box 4 F26]

Typed Letter Copy, 10 p.

Fate of Austria will be determined outside her borders; Austria unable to maintain her own independence; Paris and Rome understand this and London is increasingly aware of situation; prominent members of Parliament and English Cabinet members visited Vienna recently; according to them an effort will be made to get Italy and France to compose their differences and settle the Italian-Yugoslav dispute, arranging things so as to satisfy Czechoslovakia and Little Entente; England might then join with them in definite guarantees which would serve notice on Germany that in case of aggression the three would act together; British Minister emphasized it was their problem, and all they expected from America was a sympathetic attitude; Ribbentrop went to London to try to get credits to purchase raw materials for Germany's armament program, but failed to do so; Hitler knows his government is doomed unless he can get credits; he will try to frighten England and U.S. with threat of using substitute materials and with the old threat of Communist take over if Nazi government isn't supported; Germany cannot develop and produce substitutes for cotton, wool, etc. as quickly as needed, for her best chemists have left or been driven from the country; believe there is little danger of Communist take over; National Socialism more radical and dangerous than anything seen in Russia; U.S. must have no illusions regarding future trade relations with Germany; she wants our raw materials now, but only until she can get them elsewhere; bad policy to give further credits to country which has already repudiated earlier debts; certain banks willing to lend to Germany, but risk other people's money while they collect their percentage; only hope for Europe lies in elimination of present German government; if Italy, France, and England maintain common front, and all, including U.S. refrain from giving moral or financial support, elimination will be hastened; whatever government succeeds present one in Germany, it will be so occupied in repairing damage that it will have neither time nor resources for aggression.

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0412-00

[Messersmith, G.S.], Vienna. To John Hickerson, Washington., 1934 September 12   [Box 4 F26]

Typed Letter Copy, 1 p.

Acknowledges letter of Aug. 16; glad his own letters have been of interest to the Department; not telegraphing often for Austrian situation so dependent on other countries its major problems can be better covered by telegrams from London, Paris, Rome, or Berlin.

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0413-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1934 September 13   [Box 4 F26]

Typed Letter Signed, 2 p.

Thanks Messersmith for letters of Aug. 18, 23, and 31; gave letter of Aug. 23 to Secretary [Cordell Hull] to read; Herbert Feis returned to Washington and reported on his visit with Messersmith in Vienna; commends Messersmith for his excellent reporting.

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0414-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1934 September 14   [Box 4 F26]

Typed Letter Copy, 4 p.

Enclosure missing. Encloses copy of memorandum on German and Austrian situation prepared for Senator [Joseph T.] Robinson; Senator was in Vienna recently on way to join [Bernard] Baruch's shooting party at Count [Mihály] Karolyi's estate near Bratislava in Czechoslovakia; Senator had spent some time in Germany where he had interview with Hitler; had analyzed German situation well but was deceived by Hitler's declaration about German government following a more conservative policy; Senator also talked with [Hjalmar] Schacht and told him frankly Germany could expect no credits from U.S.; believes Senator has now changed his mind about Hitler's sincerety; Mrs. Robinson remained in Vienna while husband was in Czechoslovakia; liked Robinsons very much; Chancellor and Foreign Minister in Geneva; France and Italy seem to be making determined effort to get together; if they succeed, believe England will cooperate; Mrs. and Mrs. [Robert McCalla] English stopped in Vienna on their way home from Budapest; have had many interesting visitors; hope to get home for few weeks at Christmas time to see aged mother.

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0415-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1934 September 14   [Box 4 F26]

Typed Letter Copy, 3 p.

Mr. and Mrs. [Erhardt] Hammerand arrested for complicity in July 25 putsch; Mrs. Hammerand a native of Missouri but now an Austrian; nothing Legation can or should do about it; does not know the woman personally, but it seems there's little doubt as to her guilt; full particulars of case in dispatch 136 in order that Department may answer questions of relatives in America ; Alfred [Hoyt] Granger, American architect, a visitor in Vienna, says he is writing book, "The Spirit of Vienna"; likes to be associated with the great and near great; has been pestering Legation for introduction to President and Chancellor; finally introduced him to President [Wilhelm] Miklas; in leaving he said to President, "May I bring to President Roosevelt, who is my very dear friend, your very good wishes?"; refused to introduce him to Chancellor; did not wish to waste his time just to satisfy Granger's vanity; Granger may complain when he returns to Washington that he was not helped here as he should have been; Department should know circumstances.

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0416-00

[Moffat, Jay Pierrepont], Washington. To G.S. Messersmith, Vienna., 1934 September 15   [Box 4 F26]

Typed Letter Signed P.M., 5 p.

All letters received in reasonably shorttime; agrees that confidential dispatches and personal letters should not be sent through regular post; great merit of Messersmith's letters is their frankness, but if one of them fell into wrong hands it would cause embarrassment; FA [Division of Foreign Service Administration] has not yet increased allotment for pouch service from Vienna, but shall point out that increase is justified; Lilla [Mrs. J. P. Moffat] and children spent summer in Japan with her parents [Mrs. and Mrs. Joseph C. Grew] but are due back Oct. 1; [Auguste] Rosso, Italian Ambassador just returned to Washington from leave of absence, believes situation in Europe slightly improved because of better Franco-Italian relations and fact that Italy took prompt action on July 25; pressure on part of relatives of Mrs. [Erhardt] Hammerand to intervene in her case; whatever the merits of the case, too severe punishment would have unfortunate repercussions in America; Herbert Feis has told of his visit with Messersmith; seemed delighted that Gardner Richardson had been reassigned as Commercial Attaché in Vienna; letter describing conversation with German industrialist most interesting; Secretary [Cordell Hull] took most of Messersmith's letters to Atlantic City where he went to recuperate; gloom in New York in banking - brokerage circles due to new stock exchange bills; Maine elected Democratic Governor and two Democratic Congressmen; the one hope of the country is to support the President and the New Deal; strike continues normal course, but no cause for panic.

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0417-00

Geist, Raymond H., Berlin. To [Jay Pierrepont] Moffat, Washington., 1934 September 15   [Box 4 F26]

Typed Letter Copy, 6 p.

Copy to G.S. Messersmith. Hitler and Reichswehr now in agreement; Reichswehr naturally approves rearmament program; less interference in business now by Party radicals; Dr. [Hjalmar] Schacht, as economic dictator, able to deal with such interference; public works program continues; men under 25 removed from jobs and sent to work camps where they get military training; their jobs taken by older men; with the armament industries running steadily there is a surface prosperity, but all traceable to government action; Germany in for hard times, but citizens being prepared for it by subtle propaganda; with the build up of armaments and the indoctrination of youth to exalt everything military, by end of decade war will be almost inevitable; as long as Nazi regime is in power tensions in Europe will increase; unsafe at present to expect any diminution of powers of Hitler; Nazis professed more conservative policy has not materialized; just as much anti-Semitism and terrorism as ever.

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0418-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1934 September 19   [Box 4 F26]

Typed Letter Copy, 1 p.

John Gunther, correspondent in Vienna for Chicago Daily News leaving for holiday in U.S.; will be in Washington for several days; hopes Moffat will see him and introduce him to [William Phillips; Gunther is well-informed, an excellent correspondent, a good writer and a decent man; both Moffat and Phillips will find him interesting.

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0419-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 September 19   [Box 4 F26]

Typed Letter Copy, 8 p.

2 copies. Trials of people involved in July 25 putsch continue; additional death sentences, which were later commuted; Austrian government getting out book on putsch, a well documented and complete story; evidence damning and conclusive as to German responsibility; information regarding status of Austrian Legion conflicting; fate of [Alfred] Frauenfeld and [Theo] Habicht unknown; Dr. Wachter, Viennese lawyer involved in putsch, fled to Germany afternoon of July 25; reported to have been killed because he fell down on job and because he knew too much; no open National Socialist action in Austria today; monarchists still pressing for restoration; Prince Eugene [Archduke] went to Eisenstadt last Sunday when Otto was made honorary citizen of city; means little, since Otto named honorary citizen of many villages and towns of Austria; Otto lacks enlightened and modern spirit needed in ruler for Austria; Countess Colloredo Mannsfeld [nee Nora Iselin] contributing to coffers of monarchist movement; monarchy will come to Austria only when Italy, France, and England want it or as last bulwark against Nazi domination; growing discontent in army; officers feel they have no status; quarrels between army and Heimwehr; Major [Emil] Fey gradually being pushed into background and he resents it; his public utterances correct, but he is bitter; [William Kay] Wallace, an independent correspondent, had interview with Fey, who made statements putting Dollfuss and other members of government in bad light; Wallace brought story to Legation; gave Wallace some of true background and persuaded him not to publish article as it was; Fey has good qualities but is unpredictable; [Franz] von Papen not yet returned to Vienna; believe he is waiting for specific instructions as to what he can do or say; Frau von Papen reported to friend that von Papen did not want to accept mission but had no alternative; Swiss Government complained to German Government about smuggling of explosives from Germany to Austria through Switzerland; more proof that the bombing outrages were German inspired.

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0420-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1934 September 20   [Box 4 F26]

Typed Letter Copy, 11 p.

As requested, giving character sketch of Kurt Schuschnigg and of other men in Austrian government; Schuschnigg born 1897, son of general in Austrian army; educated University of Innbruck; served in war 1915-1919; practiced law; elected to Parliament 1927; served in Cabinet first as Minister of Justice, then as Minister of Public Education; most trusted and intimate co-worker of Dollfuss; outstanding qualities sincerety, intelligence and honesty; reserved, with manner of scholar; devout Catholic, has monarchist leanings, but knows now is not the time for restoration; mildly anti-Semitic, but does not show it; probably best and strongest man to succeed Dollfuss; [Prince Ernst Rudiger von] Starhemberg, Vice-chancellor, youngest man in Cabinet, from one of oldest and most aristocratic families in Austria, but is very friendly with humbler people; attractive, excellent speaker, more popular with masses than Schuschnigg; a monarchist and personally ambitious, but he is a patriot and a staunch supporter of Schuschnigg; once close to Nazi movement, but now definitely opposed; [Egon] Berger-Waldenegg, Foreign Minister, affable, well-informed, experienced in diplomacy, a good man for the office, but does not add strength to Government; Major [Emil] Fey, once Vice-chancellor, now being pushed into background, is very bitter, and perhaps not to be trusted; Secretary of State for Defense, General [Wilhelm] Zehner not a good choice for the position; a political general, he worked up in Quartermaster's Corps and is therefore disliked by line officers of the army; personally likeable, but adds no strength to Government; [Karl] Buresch, Minister of Finance, a clever man, but not likely to remain in post; it is reported that he has used his position for personal financial gain; [Fritz] Stockinger, Minister of Commerce, young, energetic, and has good qualities, but he too is said to have made money out of his position.

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0421-00

Messersmith, G.S., Vienna. Despatch No. 150 to Secretary of State [Cordell Hull], Washington., 1934 September 24   [Box 4 F26]

Typed Document Copy, 11 p.

Observations on the struggle of German churches to avoid complete coordination in the National Socialist Party and comments on political aspects of the problem; struggle may be decisive factor in bringing about change in German government.

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0422-00

Messersmith, G.S., Vienna. Despatch No. 152 to Secretary of State [Cordell Hull], Washington., 1934 September 24   [Box 4 F26]

Typed Document Copy, 10 p.

Observations on efforts now in progress at assuring independence of Austria and stabilizing general situation in Danubian states and Southeastern Europe; League of Nations discussing question in Geneva; hopes for agreement among France, Italy, and England to force Germany to cease aggression.

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0423-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 September 28   [Box 4 F26]

Typed Letter Copy, 7 p.

Conversations going on in Geneva regarding Austrian independence; not much accomplished so far except reaffirmation of declaration by England, France, and Italy; increasing German influence in Yugoslavia which complicates Yuguslav-Italian relations; Hungary would like to be friendly with Austria, but fears Germany; [Koloman de] Kanya, Hungarian Foreign Minister, in Berlin recently and saw Hitler and other members of German government; obvious that Hungary still has revisionist hopes; King Alexander of Yugoslavia visited Hungary at same time as Goering; Poland openly courting Germany, but Czechoslovakia remains firm; if England, France, and Italy could present a common front and implement their declaration, the situation might be saved, but Italy and France must compose their differences before England will join them.

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Items 0424-0435   [Box 4 F27]

0424-00

Messersmith, G.S., Vienna. Despatch No. 158 to Secretary of State [Cordell Hull], Washington., 1934 October 02   [Box 4 F27]

Typed Document Copy, 5 p.

[Engelbert] Dollfuss tradition developing in Austria; attended dedication of memorial church which bears Dollfuss' name and that of [Ignaz] Seipel, another great Austrian Chancellor; remains of the two are buried in the crypt; a million and a half Austrians have made pilgrimages to Dollfuss' grave; streets, squares, and buildings have been named for him in almost every town in Austria; will not attempt to assess Dollfuss' place in history, but was impressed by his ability, his breadth of vision, and his poise.

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0425-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1934 October 04   [Box 4 F27]

Typed Letter Copy, 3 p.

Reports on activities in behalf of Vacuum Oil Company which has refinery in Austria; company increased refining capacity and requested larger quota; quota was increased to triple last years quota, but Vacuum not satisfied; wanted quota as large as Shell; Vacuum has nothing in writing to show they were promised larger contingent; negotiations carried on through intermediaries instead of directly with Ministry; thinks company has no grounds for complaint; company now trying to get refinery owned by Rumanian capital and thus acquire Rumania's quota.

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0426-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 October 05   [Box 4 F27]

Typed Letter Copy, 3 p.

Had appointment with Foreign Minister [Egon Berger-Waldenegg] this morning; he had nothing new to say with respect to conversations in Geneva; emphasized difficulties raised by Yugoslavia; von Papen's visit to Budapest just before coming to Vienna doesn't increase confidence in him or his mission; Foreign Office has had reports of German diplomatic activity in Warsaw, Belgrade, Sofia, and Budapest; French Foreign Minister, [Louis] Barthou to visit Rome; Germany believes if French and Italians fail to reach agreement, present French ministry will have to resign and new ministry will be further to left; fears here that attack may be made on von Papen by Nazis in order to provoke an incident; it is reported that Hitler beginning slowly to replace some of higher Reichswehr officers; unfortunate; Reichswehr only factor left in Germany through which new regime might be brought in with order.

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0427-00

[Moffat, Jay Pierrepont], Washington. To G.S. Messersmith, Vienna., 1934 October 08   [Box 4 F27]

Typed Letter Signed P.M., 5 p.

Took four of Messersmith's letters home and read them with interest; re Mrs. [Erhardt] Hammerand, Messersmith's letter gave background useful to Department in dealing with Mrs. Hammerand's friends and relatives; has convinced them Department cannot intervene on behalf of Austrian citizen; has known [Alfred Hoyt] Granger about Washington; now more or less retired; he knows President, Secretary, and other officials, and gives them his ideas both orally and written with some frequency; thinks Messersmith handled him well, and he should have no cause for complaint; read in full resumé prepared for Senator [Joseph J.] Robinson; shall be delighted to see [John] Gunther when he comes and take him to see [William] Phillips and if possible the Secretary; thanks Messersmith for character sketches on Schuschnigg and other members of Austrian Cabinet; asks that Messersmith watch for further rift between Austrian regular army and Heimwehr; Yugoslav policy also bears watching; has been very busy; Norman Davis here for series of conferences before sailing with [Naval Disarmament] delegation on Oct. 10; Spanish revolution raging; [Ambassador Claude G.] Bowers reporting frequently; trade negotiations going on; have announced impending negotiations with Belgium, Sweden, and Spain, and are doing some preparatory work in connection with Italy, Switzerland and the Netherlands; the Englishes [Mr. and Mrs. Robert McCalla English, Mrs. Moffat's sister and brother-in-law] were here for weekend and reported seeing Messersmith in Vienna.

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0428-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 October 17   [Box 4 F27]

Typed Letter Copy, 9 p.

Situation between Chancellor and Vice-Chancellor somewhat strained; no personal difficulties, but they have opposing views regarding Heimwehr; Vice-Chancellor Prince Starhemberg, as head of Heimwehr, under pressure to place some of their members in the government; Chancellor feels appointees should be chosen for their capacities rather than because of affiliation with Heimwehr; increasing activity in Communist circles; it is reported that Communists and Left Wing Social Democrats have formed a common front; Jews, who have supported government staunchly in past, now becoming lukewarm; Dollfuss knew how to handle anti-Semitism and keep it under control, but anti-Semites now becoming more active; not a U.S. minister's place to meddle in Austria's internal affairs, but when occasion arises will not refrain from offering comment on implications to outside world, whose support Austria needs; [Franz] von Papen's movements extraordinary since his appointment as Minister to Austria; back and forth between Germany and Austria and then a visit to Budapest; he has had nothing of importance to say to government here; believes he has been given no instructions; tragedy in Marseilles [assassination of King Alexander of Yugoslavia and French Foreign Minister Louis Barthou] caused concern in Austria; Yugoslavia will have three regents, for the new king is only ten years old, and the Government will undoubtedly be weaker; Mussolini may be tempted to press her ambitions in the Adriatic, but so far has made no move; situation between France and Italy unchanged; suggests Phillips read memorandum of conversation [Alfred W.] Kliefoth had with [Edward Hallett] Carr of British Foreign Office; indicates certain public opinion in England influencing British policy; [Douglas] Reed, London Times correspondent, called recently; Reed disturbed by section of public opinion which thinks that by avoiding commitments on Continent England can avoid participation in possible European conflict; may be precipitating conflict by avoiding action; Sir Walter Layton in Vienna recently; Layton believes general situation here good; though the political situation delicate; church problem in Germany may be rock on which present German regime will break; reliable information that economic and financial situation in Germany fast approaching crisis; [Hjalmar] Schacht desperate; leading bankers forced out and replaced by mediocre men; much dissension within Nazi Party.

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0429-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1934 October 18   [Box 4 F27]

Typed Letter Copy, 10 p.

p. 3 cropped and pp. 4 & 5 missing. Talked to Foreign Minister about case of Mrs. [Erhardt] Hammerand, making clear that as Mrs. Hammerand is Austrian citizen, inquiry unofficial; Foreign Minister said she would be released, but case against her husband continued; has done about all that can be done for Vacuum Oil Co.; sending dispatch reviewing financial and economic situation in Austria, and will send one monthly here-after; will ask [Cecil Wayne] Gray to prepare them as he does this kind of work well; Legation needs reorganization; building unsuitable; Consulate in another building, Commercial Attaché in a third building, and Treasury Attaché in a fourth; thinks it essential that all be under one roof, and is looking for more appropriate quarters; regrets Moffat's time in the Department will be up next July, but hopes his next assignment will be agreeable; memorandum of conversation [Alfred W.] Kliefoth had with [Edmund Hallett] Carr of British Foreign Office enclosed with dispatch sent in this pouch; Carr clever and intelligent, but a liberal who cannot forgive Austria's doing away with Parliamentary government and dissolving the Social Democratic Party, not realizing that return of Party struggles in Austria would deliver her over to Germany and precipitate conflict; believes Austria will return to Parliamentary government when danger from outside is gone; E. E. Turner, former pastor of American Church in Berlin, reported to be in pay of Nazi government, now in U.S. making speeches; an insignificant man, he was unpopular with his congregation and when he left for U.S. and was asked not to return; if Department wishes, [Raymond H.] Geist can give a further report on Turner; sees from papers American Olympic Committee finally voted to participate in Berlin Games; German assurances that there will be no discrimination are words only; real freedom of participation does not exist; [Douglas] Jenkins [new Consul General] arrived in Berlin and was given hearty welcome; regrets [Raymond H.] Geist not included in list of promotions; Geist has done outstanding work and should be recognized.

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0430-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1934 October 19   [Box 4 F27]

Typed Letter Signed, 2 p.

Acknowledges Messersmith's recent letters which were read by all in Department who follow developments in Central Europe; looks forward to next letter which will no doubt cover King Alexander's death and repercussions in Austria; Secretary run-down, suffering from laryngitis, and has gone to Pinehurst for rest.

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0431-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1934 October 19   [Box 4 F27]

Typed Letter Signed, 2 p.

Can find no record of dispatch in which Mr. [Alfred W.] Kliefoth criticized unfavorably Mr. [Frederick] Kuh of the United Press.

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0432-00

Messersmith, G.S., Vienna. Despatch No. 189 to Secretary of State [Cordell Hull], Washington., 1934 October 24   [Box 4 F27]

Typed Document Copy, 17 p.

Reports on situation of Jews in Austria; alleged discrimination in official, professional, and business circles; Dollfuss made no public declaration against discrimination, but stopped it wherever he found it, and he had support of Jews; Schuschnigg thought to be somewhat anti-Semitic, but he assured Jewish leaders that rights of Jews would be respected; Austria needs good will of other countries to maintain independence and a charge of anti-Semitism would cost her their friendship.

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0433-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 October 26   [Box 4 F27]

Typed Letter Copy, 8 p.

Under new constitution Austria is a corporative state, with various bodies whose function is deliberative, taking place of Parliament; membership of these bodies to be announced Nov. 1; appointments the cause of much dissension; Heimwehr especially making exaggerated demands, but Chancellor wishes to get best men for positions, regardless of faction; list of appointees appears to be complete without precipitating crisis; many disturbed because Chancellor has been talking to representatives of Austrian Nazi Party; no cause for alarm; Chancellor will remain firm; decree issued providing for "parallel" classes for Jews and Gentiles in schools; obviously intended to put Jews in secondary category; decree announced while Chancellor and Foreign Minister were in Geneva asking help for Austria; incident did not improve Austria's impression with delegations from England, France, and Italy, though Chancellor and Foreign Minister made reassuring statements regarding discrimination; Jewish leaders called on Chancellor and were promised that Jews would be guaranteed all constitutional rights and equality; talked recently with correspondent who spends most of his time in the Balkans; he says Croations undoubtedly behind murder of King Alexander; Goering attended Alexander's funeral and made speech promising Yugoslavia territory if she followed Germany's lead; much visiting among European government leaders to various capitals; clear that Germany trying to prevent Italian-Yugoslavian understanding in order to make French-Italian agreement impossible; read Frank Simond's article in Atlantic Monthly; agree with his major conclusions; Europe in same position as in 1914; England must make decision; if she makes it in time general conflict can be avoided, but if she delays too long, war will eventually come; Italy's need for money and her difficult internal situation make for moderation there.

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0434-00

1934 [October]   [Box 4 F27]

Typed Document Copy, 29 p.

Resumé of major factors in economic, financial, and political situation in Europe, prepared by G. S. Messersmith.

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0435-00

[Moffat, Jay Pierrepont], Washington. To G.S. Messersmith, Vienna., 1934 November 01   [Box 4 F27]

Typed Letter Signed "P.M.", 5 p.

P. 4 partially deleted. Thanks Messersmith for his letters and for kind personal remarks; Mrs. [Erhardt] Hammerand's case handled well, and family in America appreciative; thinks Messersmith has done all possible in matter of Vacuum Oil Co.; will talk to representative of company here and explain matters to him; wishes American companies operating abroad would employ American agents and that they would not deal through paid intermediaries; in Germany, [Raymond H.] Geist successful in effecting release of property of Watch Tower Bible and Tract Society which had been seized; Geist has continued his excellent work; when Douglas Jenkins took over Consulate, recommended to Personnel Board that Geist be sent a special commendation; George Earle here recently and asked for latest news of Austria; Earle waging hot political fight in Pennsylvania; has strong opponent and fears he will lose election; [Frederick M.] Sackett was in recently; Sackett had been under great strain until his niece, Mrs. [Berry V.] Stoll [who had recently been kidnapped] was released; Department's chief concern now Naval Conference business; Japanese being difficult.

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Items 0436-0448   [Box 4 F28]

0436-00

1934 November 03   [Box 4 F28]

Typed Document Copy, 19 p.

Enclosed with No. 437. Memorandum on necessity for retaining Americans abroad in charge of American interests; growing tendency to replace Americans with foreigners who will accept less compensation; because of intense nationalism in many countries, American firms may try to conceal ownership by removing American personnel; when there is a conflict of national interests American firms under foreign management will suffer.

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0437-00

Messersmith, G.S., Vienna. Despatch No. 199 to Secretary of State [Cordell Hull], Washington., 1934 November 06   [Box 4 F28]

Typed Document Copy, 3 p.

Enclosure: See No. 436. Transmitting memorandum on necessity for having American interests abroad managed by Americans.

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0438-00

Messersmith, G.S., Vienna. To J[ay] Pierrepont Moffat, Washington., 1934 November 08   [Box 4 F28]

Typed Letter Copy, 8 p.

Glad the case of Mrs. [Erhardt] Hammerand happily cleared up; [Alfred Hoyt] Granger so pleased with visit to President [Wilhelm] Miklas, he probably left Vienna happy; his book on Austria may be interesting and helpful; received Department's instructions regarding Dr. [Julius] Deutsch and understands that he could not be refused visa; Deutsch has already sailed for U.S. and will make lecture tour arranged by Socialist and Jewish interests; Deutsch living on past glory, and has no significance now; does not represent Austria, or even the Austrian Social Democrats and can speak only his own opinions; if this could be brought discreetly to attention of proper people, ill effects of trip might be mitigated; Austrian press reports Goebbels sending [Alfred] Frauenfeld to U.S.; he is hot headed and irresponsible, and if he goes to U.S. should be treated as such; delighted Harvard refused [Ernst Franz Sedgwick] Hanfstangel's offer of scholarship; [Franz] von Papen making himself objectionable; when Hungarian Foreign Minister was in Vienna for brief visit with Chancellor, von Papen barged in to see him; von Papen now making trips about Austria, meeting with German societies and making speeches; appreciates Department's telegram concerning Vacuum Oil Company and glad Department agrees with attitude Legation took; [Ernest L.] Harris, Consul General, on vacation; Harris will reach retirement age in 1935; prolongation of his service should not be considered; likes Harris personally, but feels he no longer performs useful service, and too many more competent men deserve promotion; press reports about conditions in Austrian concentration camps and prisons incorrect; talked to Mr. Ferriere, who had been sent by Swiss organization to inspect camps and prisons; Ferriere reported that he talked to prisoners freely; found them well housed, well fed, and generally well treated; [Raymond] Geist reports that he has left Berlin for vacation which he has earned and needs; is sure he will be great help to [Douglas] Jenkins; they will have hands full; American interests in Germany will be hurt more and more; Secretary [Cordell Hull's] stand against necessarily balanced trade between all countries both wise and farseeing; calls attention to memorandum accompanying dispatch No. 199 on necessity of placing American interests abroad in hands of Americans; when foreigners are employed as agents or managers, there is often conflict of interest.

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0439-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 November 08   [Box 4 F28]

Typed Letter Copy, 25 p.

Announcement of appointments to corporative bodies made Nov. 1 without precipitating crisis; corporative bodies are called (1) State Council (2) Cultural Council (3) Economic Council and (4) Provincial Council; President makes appointments on nomination of Chancellor; Councils' function advisory only; real power remains in Cabinet; Chancellor stated Austria would return to more democratic government when circumstances permit; appointments to Councils represent compromise; some are leading people in the country, but majority are unknowns who add no strength to government; one Jew named to each of three Councils; conversations continue between Chancellor and so-called Nationalist groups; doubts wisdom of Chancellor's talking with them; any agreement reached would be placing seal of respectability and legality on their activities; fears position of Chancellor weakened; he did not make good impression on English, French, and Italian representatives in Geneva; should Chancellor be inclined to make concessions, influence of [Ernst von] Starhemberg and Catholic Church sufficient to counteract his attitude; dissatisfaction in Army, reported earlier, seems negligible now; Prime Minister of Hungary [Julius de] Goemboes spent Sunday in Vienna on way to Rome and had long talk with Chancellor; Hungarian Foreign Minister [Koloman de] Kanya in Vienna ten days ago and talked with Chancellor and Austrian Foreign Minister; rumored that he counselled them to be as conciliatory with Germany as possible; new Hungarian Minister to Austria, Baron [Gabriel] Apor, believes Germany approaching crisis; indications are that Hungary keeping path open to Berlin, but less definitely oriented toward Germany than formerly; Polish Minister in Vienna said Poland under no illusions regarding agreements with Germany; Goemboes reported to have been surprised on recent visit to Warsaw to find Poland veering away from Germany toward France; situation in Yugoslavia reported quiet; murder of King Alexander seems to have brought various factions together; Italian attitude toward Yugoslavia becoming more conciliatory; internal troubles in France delaying French-Italian conversations; German friend who has consistently held opinion that Hitler regime would last, now believes crisis rapidly approaching; recapitulates aims of Nazi Party and shows how German government has followed through in carrying them out; only in economic program, church program and plans for absorption of Austria have there been obstacles; economic policy has resulted in lower income and increased living costs; Dr. [Kurt] Goerdeler appointed commissioner to control price increases, but little he can do; some think alternative to Nazi regime is Communism and chaos, but there are still elements of order and reason in Germany; received report that [Hjalmar] Schacht to be forced out of Commerce Ministry and be replaced by [Walther] Funk; Schacht found position intolerable and tried to leave earlier but was not permitted; Funk smooth and capable, but unreliable.

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0440-00

Messersmith, G.S., Vienna. Despatch No. 209 to Secretary of State [Cordell Hull], Washington., 1934 November 13   [Box 4 F28]

Typed Document Copy, 10 p.

Further observations on situation of Jews in Austria; discrimination continuing but not out of control; convinced that Chancellor and other government leaders are sincere in their assurances that Jewish rights will be upheld, but they are being pressured by certain factions to put through anti-Semitic measures; Jew, a spokesman for the Jewish community, appointed to the Staatsrat, the highest deliberative body in Austria; leaders realize international support which Austria is receiving would be weakened if discriminatory measures increase.

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0441-00

Memorandum of conversation between G.S. Messersmith and [Franz] von Papen., 1934 November 14   [Box 4 F28]

Typed Document Copy, 7 p.

Enclosed with No. 442. Returned [Franz] von Papen's call; conversation began with inconsequential talk; von Papen asked about election in U.S. and what results meant to the President; replied that results indicated strong personal endorsement for President, expression of confidence, and approval of major Presidential policy; conversation moved on to economic matters, stabilization of currency, devaluation, inflation, and effects in various countries; von Papen asked for observations on internal situation in Germany; refrained from commenting on this matter; von Papen commented on difficulty in Germany of getting raw materials; replied that Germany could get raw materials anytime in the world markets by paying for them; von Papen asked for opinion on Austro-German relations; replied that Austro-German relations important factor in peace in Europe and that it was a mistaken policy to press political sovereignty on any country beyond present frontiers of Germany; same thing had led to war in 1914; von Papen insisted Germany did not want to make Austria a subservient or dependent country, but then contradicted himself by saying Germany only wanted Austria to follow her policy instead of that of France; any country bound to follow policy of another could hardly be considered independent; conversation carried on, in friendly manner, but gathered the impression that von Papen is the intriguer which he denies; "he is a great spinner of webs and usually gets tangled up in them himself."

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0442-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 November 16   [Box 4 F28]

Typed Letter Copy, 11 p.

Enclosure: See No. 441. Conversations between Chancellor and Nationalists discontinued; [Franz] von Papen may not have instigated conversations, but he has been in touch with Nationalists and advising them; von Papen reportedly negotiating with Chancellor and Foreign Minister on German-Austrian rapprochement, but according to Chancellor only talks had been on commercial matters; Church distrusts von Papen and influence of Church strong in Austria; Mr. Novackh, who had been appointed head of Council of State was removed from office when it was discovered he had remarried without proper Church annulment; Novackh replaced by Count [Rudolf] Hoyos; Councils play secondary role now, but may become nucleus of a return to parliamentary government; some Jewish discrimination continues in spite of assurances of Chancellor; [John F.] Montgomery in Budapest sent to Legation copy of his telegram to Department regarding Hungary's part in furthering German-Italian relations; information from sources in Vienna do not support implications of telegram; von Papen complains that he is constantly accused of being intriguer and emphasizes his desire for peace and good relations; no one in official circles or among colleagues has any faith in these protestations; Chancellor and Foreign Minister met with [Julius de] Goemboes on his way back to Budapest from Rome; according to Chancellor, their discussion was of extension of economic provisions of Rome Protocols; fact of German rearmament now recognized generally; only hope for Europe is Anglo-French rapproachment and common action; both are rearming; Chancellor and Foreign Minister left yesterday for Rome for talks on widening scope and effects of Rome Protocols; believes that closer Anglo-French rapproachment should have restraining influence on Italy; glad [Pierre-Etienne] Flandin to head new French government; Flandin a well-informed and able man; calls attention to articles on Austria by Douglas Reed in London Times for Nov. 8 and 9; thinks Reed's conclusions sound; Berlin correspondent for Chicago Daily News reports trade and credit negotiations going on between Berlin and Moscow, but no confirmation; has heard nothing further concerning rumor of [Hjalmar] Schacht's resignation; [James] Mooney, President of General Motors Export Corp. called recently; Mooney interested in U.S. making barter arrangements with Germany; tried to convince him there would be no advantage to U.S. or to the peace of the world; Mooney may be in touch with Department when he returns to America; he knows [George Nelson] Peek; returned von Papen's call recently and append resumé of conversation.

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0443-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1934 November 16   [Box 4 F28]

Typed Letter Signed, 2 p.

Messersmith's letters helped with speech given on Armistice Day; no members of press present; made no reference to Messersmith as source of information; interested in all Messersmith can tell about [Ernst von] Starhemberg and his ambitions and information on financial and economic conditions; conflicting reports on this subject; Secretary has returned much refreshed, after vacation in Pinehurst.

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0444-00

Messersmith, G.S., Vienna. Memorandum of comments by German friend visiting in Vienna on situation in Germany., 1934 November 21   [Box 4 F28]

Typed Document Signed "G.S.M.", 6 p.

Enclosed with No. 445. Copy with No. 447. Friend has contact with leading people in business, financial, professional and political circles, and is well-informed; said Hitler fearful of his life and increasingly inaccessible; [Franz] von Papen drew up Hindenburg's will after long conversation with him shortly before his death, and Hindenburg, having great confidence in von Papen, signed it without reading it; inference clear that von Papen put into will whatever he wished; concerning repeated statements as to Hitler's sexual abnormality, friend stated he knew in this respect Hitler was "quite normal"; Hitler has decided that neither [Hermann] Goering nor [Rudolf] Hess is to be Vice-Chancellor; if, or when, appointment is made, it will be [Wilhelm] Frick; Goering content with this solution, for he would become Minister of the Interior, with charge not only over police, but over Himmler and S.S.; Reichswehr would approve this solution also; Frau von Papen had related to friends in Austria the narrow escape she and von Papen had on evening of June 30; informed by telephone that something was going to happen and that her life and von Papen's were in danger; without telling her husband she immediately called a friend in the Reichswehr, who sent a detachment of soldiers to guard the house; in early evening a group of Himmler's S.S. men approached to carry out their orders but seeing soldiers withdrew; asked friend if this correctly described incident; he said it was correct and added that the friend Frau von Papen had called was General Werner von Fritsche, the Commander-in-Chief; friend reported much disorganization within Party; Goebbels booed at Party meeting, but still too valuable to Party to be let go; [Fritz] Reinhardt, State Secretary in Finance Ministry, opposed [Hjalmar] Schacht in recent Cabinet meeting, calling his notions capitalistic; Schacht walked out of meeting and did not return until Reinhardt, on Hitler's orders, apologized; Reichswehr remaining apart from situation and taking no part in any except rearmament activity; friend does not think price rise in Germany will be so rapid as some think; factors other than economic and political, such as church question, assuming more importance; friend believes President Roosevelt the greatest world leader today, and although patriotic German, approves U.S. attitude; he is very pessimistic about outlook for Europe; he feels when dollar and pound reach parity, other currencies will adjust to it; solution would be helped if England got away from foolish worship of gold.

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0445-00

Messersmith, G.S., Vienna. Despatch No. 222 to Secretary of State [Cordell Hull], Washington., 1934 November 23   [Box 4 F28]

Typed Document Copy, 2 p.

Enclosure: See No. 444. Transmitting memorandum on situation in Germany as revealed through conversation with well-known German.

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0446-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 November 23   [Box 4 F28]

Typed Letter Copy, 14 p.

Enclosures: 444 and 447. Speculates on results of Chancellor Schuschnigg's trip to Rome; impression is that Mussolini assured Schuschnigg of Italian support in case of German aggression; exchange of cultural institutions between Rome and Vienna has been suggested, but doubts anything will come of it; Austrian culture essentially German, not Latin; in working out Rome Protocols Austria made it clear she does not desire her position strengthened at expense of Hungary; Franz Hueber, one of the "Nationalists" who recently held conversations with Schuschnigg, is brother-in-law of Goering; Hueber just back from Germany and disappointed that Germany can do nothing at present for Austrian Nazis; Germany not yet ready for war and cannot afford any adventure which might provoke one; Hueber's information no doubt came from Goering; German friend, in Vienna for a few days, confirmed German progress in rearmament; Reichswehr in full sympathy with armament program, but takes no part in government; most of Nazi leaders, except Goering, think they are ready for war now, but Reichswehr knows better; Hungary wavering; Hungarian Prime Minister and Foreign Minister pro-German, but it is the old Germany to which they are attached, and Germany's refusal to make an unequivocal declaration regarding Austria has caused disillusionment; France having internal troubles which make difficult agreements between her and other countries; financial scandals and parliamentary troubles create poor background for problems France faces; Yugoslavia insistent that League take action with regard to murder of King Alexander; such action would embarrass France at present; League should first take up matter general agreement on right of asylum for political refugees; (group of Croation refugees in Hungary held responsible for plotting Alexander's murder); Yugoslavia has been urging Germany to remove Austrian Nazi refugees still in Yugoslavia; according to press reports refugees to be taken on German ships to Bremen and then to Bavaria; a female member of Thyssen family living in Austria; Thyssen originally subsidized Nazi movement, but according to memorandum prepared by member of Legation staff, who is friendly with them, their attitude now different; criticisms of Hitler government now more open; [Kurt] Schmitt back into German Ministry of Commerce to bring about partial devaluation of the mark; serious difficulties developing between Schmitt and [Hjalmar] Schacht; Austrian newspapers say Schmitt will go to Washington as Ambassador; Schmitt is good man, but can accomplish nothing under present government.

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0447-00

Memorandum of conversation between A.W.K. [Alfred W. Kliefoth] and Herr X, principal representative in Austria of the industrial house of Thyssen in Germany., 1934 November 23   [Box 4 F28]

Typed Document Copy, 4 p.

Enclosed with No. 446. Thyssen family subsidized Nazi movement from beginning; many attempts made on Hitler's life, so that he remains in heavily guarded seclusion; is openly criticized throughout Germany; prestige of Goering on decline; discipline weak in S.A. and S.S.; Stahlhelm now popular; looked upon as center of movement to overthrow Hitler regime; economic conditions worse in Germany; prices up, standard of living lower; church dispute has weakened Nazi movement; Goebbel's retirement demanded but Hitler continues to protect him; Thyssen family now fearful for their lives and property and are secretly transferring much property to foreign countries.

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0448-00

Press cutting, New York Evening Post., 1934 November 26   [Box 4 F28]

2 cols.,mounted. Enclosed with No. 452. Dr. Julius Deutsch, Austrian Socialist, on lecture tour in U.S.; says only way to preserve peace in Europe is to take Austria out of hands of "Facist playmasters", with its neutrality guaranteed by League of Nations, and a return of the country to democratic-form of government.

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Items 0449-0465   [Box 4 F29]

0449-00

Messersmith, G.S., Vienna. To Secretary of State Cordell Hull, Washington., 1934 November 27   [Box 4 F29]

Typed Letter Copy, 2 p.

Congratulates Hull on speech on international trade before Foreign Trade Council; agrees with Hull that insistence on balanced trade between all countries would lead to throttling of exchanges.

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0450-00

Resumé of some of the major factors in economic and political situation facing Europe., [1934 November]   [Box 4 F29]

Typed Document Copy, 29 p.

Historical background for present situation; led by Prussia, Germany unified after Franco-Prussian War and became world power; political ambition to dominate Europe and desire for expansion led to World War; crushed by defeat, humiliated, burdened by debt, Germany was unready for Republican form of government imposed on her at the end of the war; many political parties, none of which could command a majority; resentment of people increased with increased economic pressure and the feeling that the rest of the world was responsible for all of Germany's troubles; growth of National Socialist Party slow at first; group of industrialists, fearing Communism and Social Democrats began to finance National Socialist' movement, thinking to use it as a counter balance; when Party came into power, industrialists found they could not control it; Hitler has only two convictions - his hatred of Jews and his determination to annex Austria; Austro-Hungarian Empire broken up by Versailles Treaty and Austria's boundaries defined; cannot maintain herself without trade, nor defend herself against Germany without aid of other European countries; Italy has promised support and France and England have made public declaration that Austria's independence should be maintained; only hope for peace in Europe is a change of government in Germany.

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0451-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 December 06 07   [Box 4 F29]

Typed Letter Copy, 14 p.

Enclosure missing. Four deliberative councils, provided for under new Constitution, organized and making fair start; former Burgermeister [Karl] Seitz released from prison on condition he would not engage in political activities; Chancellor [Kurt Schuschnigg] gaining ground with experience and increased self-confidence; Prince [Ernst von] Starhemberg remaining more in background than formerly; he is said to fear attack upon his person; [Franz] von Papen called to Berlin Dec. 1, but is expected back today; von Papen unhappy in Vienna, being socially avoided and making no progress with Austrian government, which has no confidence in him; map being circulated showing Austria as integral part of Germany; terms of Saar settlement not yet made public; if England, France, and Italy did not insist on Germany's giving a binding, public, and unequivocal declaration with respect to Austria, they have missed great opportunity; 1900 Nazi refugees in Yugoslavia taken by German ships to Hamburg; 180 requested return to Austria and were turned over to Austrian authorities; [Anton] von Rintelen still in hospital and under detention; said to be almost recovered and will probably be brought to trial soon, but trial not likely public; has been informed that Austrian government asked press to be restrained in commenting on German rearmament and the Saar question; this was done at request of General [Werner] von Fritsche, Commander in Chief of German Reichswehr; Reichswehr known to oppose political union with Austria; uncertain as to outcome of conversations between Paris and Berlin; French veteran organizations obsessed with fear of another war and have lost confidence in their political leaders; no faith can be placed in Hitler's promises; when [William E.] Dodd first came to Berlin and had his interviews with Hitler, he was impressed by what he believed to be Hitler's sincere and peaceable intentions; Dodd has since learned to measure him by his acts rather than his words; removal of [Helmuth] Bruckner, Nazi leader in Silesia, not to be interpreted as change to now reasonable attitude by Party; anti-Jewish measures in Germany continue; [Alfred] Rosenberg and [Julius] Streicher still active; church struggle goes on; [Wilhelm] Furtwangler and Erich Kleiber, two leading conductors Germany has left, recently resigned because they could not stand conditions imposed on them; forcing out of Count [Rudiger] von der Goltz as "Führer der Deutscher Wirtschaft" cannot be considered step in moderate direction; von der Goltz was causing trouble for [Hjalmar] Schacht, who has task of keeping prices down; von der Goltz replaced by [Ewald] Hecker, who is a good man, but who can accomplish nothing under present regime; Yugoslavia quiet; correspondents just back reports prospects good for forming new Ministry with Croat and Slovene representation; interrupted this letter yesterday to attend reception given by wife of Foreign Minister to diplomatic corps; was talking with British colleague, Sir Walford Selby, when [Franz] von Papen walked up and started political discussion; made memorandum of what was said; appending copy to this letter; British colleague remarked that it is plain from this conversation what England and France can expect, and Germany will, after the Saar, concentrate on treaty revision and further concessions.

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0452-00

Moffat, Jay Pierrepont, Washington. To G.S. Messersmith, Vienna., 1934 December 12   [Box 4 F29]

Typed Letter Signed "P.M.", 4 p.

Enclosure: See No. 448. Alfred Hoyt Granger has returned, pleased with reception he received at Legation in Vienna; believes Dr. [Julius] Deutsch has attracted little attention; encloses clipping concerning him; will pass on orally in right quarter, when occasion warrants, Messersmith's remarks concerning [Ernest L.] Harris; John Gunther called yesterday; had long talk with him and arranged for him to attend press conference; Rudolf Schoenfeld run down from overwork and ordered by doctor to take month's rest; staying with Arthur Schoenfeld in Santo Domingo; informed by one of the Little Entente representatives that [Edward] Benes and [Nicholas] Titulescu in accord in opposing revision; they think by linking revisionism and terrorism they would have support of public opinion; events in Geneva assume new significance; public opinion in U.S. seemed to favor Yugoslav cause until deportation of Hungarians began, when sympathy veered to other side; chief concern for last two months has been naval conversations in London with emphasis on Anglo-American cooperation; no chance of a meeting of the minds with the Japanese; extends Christmas greetings.

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0453-00

Messersmith, G.S.Vienna. To Jay Pierrepont Moffat, Washington., 1934 December 14   [Box 4 F29]

Typed Letter Copy, 4 p.

Eighty-six year old mother confined to bed; she has had several heart attacks; would like to go home, but difficult to leave now; wife's sister and nephew visiting for Christmas; nephew became suddenly ill and is in hospital, where doctors offer little hope of recovery; situation within Austria remains quiet; Saar solution welcomed in Austria; League did a good job; progress being made in settling situation caused by Marseilles murder [of King Alexander]; Hungarian and Yugoslav press showing remarkable restraint; still needed from Germany is a firm statement regarding her intentions in Austria; situation in Germany remains unchanged except financial and economic problem more serious; after Saar plebiscite Hitler may feel strong enough to eliminate some of the radical wing of the Party which is causing so much trouble for business and industry; sending in pouch today memorandum of conversation with Karl von Wiegand; no question that he is well-informed; [Charles] Flick-Steger, Universal News [AP] correspondent in Vienna arrested yesterday; in Berlin it was known he was pro-Nazi; Flick-Steger drove across border to Czechoslovakia and returned,without stopping at customs either way; released yesterday evening; his release saved an unpleasant situation from developing.

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0454-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1934 December 17   [Box 4 F29]

Typed Letter Signed, 2 p.

Acknowledges letters of Nov. 16 and 23; Messersmith's observations on visit of [James] Mooney, President of General Motors Export Corporation have been useful; intrigued by [Franz] von Papen's reply to Messersmith on subject of Anschluss.

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0455-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 December 21   [Box 4 F29]

Typed Letter Copy, 13 p.

Glad to hear Secretary returned from Pinehurst much refreshed; not unduly optimistic about situation in Europe, but developments in last six weeks have been in right direction; England, France, Italy, and Yugoslavia closer to agreement; League handling of Saar question and complications resulting from Marseilles murders indicates new spirit of cooperation; new coalition cabinet formed in Yugoslavia includes both Croats and Slovenes; if London, Paris, Rome, and Belgrade continue on present path, Poland, Hungary, and Balkan Entente likely to follow, and Hitler Germany will be completely isolated; Germany recognizes her position and is making effort to drive wedge between England and France; attitude of U.S., though no commitment is made, has contributed to present determined attitude of England and France; position of Austrian government and of Chancellor is strengthened, and if troubles arise they will come from outside; [Ernst von] Starhemberg keeping in background; Starhemberg reported to be very grateful to Schuschnigg for his intervention with the Pope in matter of annulment of Starhemberg's marriage; wife a charming woman, but has no children, and Starhemberg anxious for heir; Austrian government convinced that Germany has not given up her aspirations concerning Austria; explosives reportedly being sent again from Germany to Austria; Foreign Minister told of visit he and Chancellor made to Budapest; reported Austria and Hungary closer together now than in many years; economic more than political considerations drawing them together; economic situation in Austria encouraging; press comment about Austrian rearmament foolish; only basis for story is reopening of powder factory; all it means is that powder she used to import she will now make at home; in Germany, Reichswehr insisting that it be only armed force of government; S.A. practically eliminated; now it is reported S.S. to be absorbed by regular army; since Reichswehr is not Nazi, Party will be left without armed force to carry out its will; Reichswehr may be preparing way for new regime; saw in Vienna recently old friend, Abraham Frowein, former President of Internation Chamber of Commerce; Frowein reserved in what he said, but gave impression that situation in Germany was bad; church struggle continues unabated as does anti-Jewish program; Krupp von Bohlen resigned from Commerce Ministry out of disgust, disillusionment, and as a protest.

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0456-00

Hull, Cordell, Washington. To G.S. Messersmith, Vienna., 1934 December 26   [Box 4 F29]

Typed Letter Signed, 1 p.

Acknowledges Messersmith's letter of Nov. 27 and thanks him for his kind words regarding speech before National Trade Council in New York.

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0457-00

Moffat, Jay Pierrepont, Washington. To G.S. Messersmith, Vienna., 1934 December 27   [Box 4 F29]

Typed Letter Signed "P.M.", 3 p.

Regretted to learn of death of Messersmith's nephew and of his mother's illness; glad Messersmith will be coming home in the spring; many things to discuss concerning German and Central European situation; so-called German cotton barter deal pretty well finished; no thought to kill it outright, but to leave it comatose until it dies anyway; Mr. [William E.] Dodd arrived yesterday for his leave but probably will not come to Department until after the New Year; since adjournment of London Naval talks, Department has been less rushed; Ambassador Saito coming on Saturday to give formal notice of Japan's intention to terminate Washington Treaty; Secretary must make some statement which he will keep both firm and non-provocative; British wish to continue talks, hoping for some change in Japanese position, but Department feels unsuccessful conference more dangerous to international good will than no conference.

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0458-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1934 December 28   [Box 4 F29]

Typed Letter Copy, 4 p.

Austrian German situation unchanged since last letter; according to Foreign Minister, Government feels prepared to meet any contingency arising within country; he does not look for any aggression from Germany in immediate future; in Germany, Reichswehr determined to demilitarize S.S. as rapidly as possible, but is meeting with opposition; press reports mass arrests and even executions; temporary lull in church struggle, but expected to become intense after Saar plebiscite; Reichswehr will leave to Goering task of getting rid of Goebbels, Darre, Ley, and Streicher, but feels Hitler may have to remain in picture a while longer; obvious that things are moving faster in Germany, and that popular disillusionment is making real progress.

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0459-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1935 January 04   [Box 4 F29]

Typed Letter Copy, 3 p.

Prospects for happy outcome of Rome talks are good; if London, Paris, and Rome can get together, it will be great achievement and will influence situation in Germany; developments in Germany seem to be rapid behind scenes, but accurate information difficult to obtain; hopes to get information regarding recent gathering of Nazi leaders in Berlin; tremendous disorganization, distrust, and uncertainty within Party leadership; church question likely to be pressed after Saar plebiscite; agreement between major powers bound to accelerate developments in Germany and increase anxiety of Party; some fear that radical elements will attempt action against Austria; much talk recently of Socialists being more likely to make trouble in Austria than the Nazis; may be some truth in talk, because Socialists are a strong element in the country.

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0460-00

Messersmith, G.S., Berlin. To William Phillips, Washington., 1935 January 08   [Box 4 F29]

Typed Letter Copy, 16 p.

Rome conversations between [Pierre] Laval and Mussolini appear to have been successfully concluded, each giving up some of his aspirations in order to achieve accord; England played large part and U.S. attitude may have helped; countries of Southeast Europe and Poland invited to join the major powers in a non-interference agreement; most of them losing faith in Nazi Germany and they probably will join in agreement; Rome accord blow to Germany; with England, France, and Italy forming united front, and other countries falling into line, Germany finds herself more isolated than ever, and her territorial aspirations crushed for the present; Laval and Mussolini made clear that their agreement is directed against no one, meaning Germany, leaving way open for graceful acquiescence by Germany; England suggests legalizing Germany's rearmament, hoping she may be induced to return to League; prospects for peace in Europe greater now than at any time since Nazis came into power, but shouldn't be too optimistic; Nazis have not yet given up any of their aims.

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0461-00

Messersmith, G.S., Vienna. To James C. Dunn, Washington., 1935 January 10   [Box 4 F29]

Typed Letter Copy, 2 p.

Has been fighting attack of influenza last few days; holidays in Vienna have been quiet; rumors that [Ernst von] Starhemberg planning a coup and will make himself Regent are rumors only; he probably would like to be regent but is too much a patriot to do anything to disturb situation now; increasing tendency for Austria and Hungary to cooperate with Little Entente; causes no joy in Berlin; delighted Buildings Commission decided to buy house now living in as permanent residence for Ministers to Austria; it is a splendid house and the price was low.

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0462-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 January 11   [Box 4 F29]

Typed Letter Copy, 3 p.

Has talked with Foreign Minister since last letter; Foreign Minister glad Paris and Rome took up idea of non-interference pacts; work on pacts to go ahead rapidly; Vienna to play leading part; Foreign Minister feels question of Austrian sovereignty settled but realizes there is always possibility of unexpected action from Germany as long as present regime lasts; German diplomatic officers, apparently under instructions from Foreign Office, giving impression Germany will sign non-interference pact with Austria, but as Foreign Office does not necessarilly make German foreign policy, some scepticism exists; Tibor von Eckhardt, leader of Agrarian Party in Hungary, stopped in Vienna en route to Geneva and made speech, strongly attacking Little Entente; talked with Eckhardt later; believes Eckhardt too broad minded to have written or delivered such speech on his own initiative; probably responsibility lies with [Julius] Goemboes or [Koloman de] Kanya who wanted to deliver one last blow against Czechoslovakia and Yugoslavia; [Franz von] Papen as usual behaving foolishly; tries to take precedence over other ministers because his letter of credence designated him "Minister on Special Mission".

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0463-00

'Messersmith, G.S., Vienna. To James C. Dunn, Washington., 1935 January 17   [Box 4 F29]

Typed Letter Copy, 2 p.

Had expected to write more at length, but bout with influenze prevented; imminence of regency in Austria in European papers and probably in American papers; no intention on part of Prince [Ernst von] Starhemberg or anyone else of declaring regency in near future or of bringing about a restoration; rumors also concerning Chancellor's visit to Prague, now in progress; can assure that visit has no significance other than to create favorable background for completion of Austro-Czech trade agreement; fantastic to believe he is trying to prepare way for restoration.

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0464-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 January 18   [Box 4 F29]

Typed Letter Copy, 8 p.

Austrians satisfied with result of Saar plebiscite; Austrian press restrained, but emphasizes vote should not be considered victory of Hitler government; Nazis in Austria weak, but government took precautions against demonstrations following Saar plebiscite; Austria's internal situation cause for uneasiness; certain men in government no doubt marked for assassination and are heavily guarded; Government wants no incident in Austria which might embarrass London, Paris, or Rome; Schuschnigg seems leaning toward Monarchy; Baron [Gabriel] Apor, Hungarian Minister, said, "It was becoming clearer that Austria and Hungary would have to begin sleeping with each other again...and they might even have to take a Hapsburg into the bed with them"; if unity of London, Paris, and Rome can be maintained, Germany can be brought into line; many rumors about what is happening, but difficult to separate real from fantastic; one story is that Germany is about to proceed against Danzig and that she and Poland have scheme to give Poland new outlet to the sea; another is that plans are made for putsch against Austria immediately after League formally turns over the Saar; movement in moderate direction seems to continue in Germany; was informed that Freiherr von Lueninek, who belonged to former Center Party is to have position under [Hjalmar] Schacht, practically replacing the more radical [Walther] Darre, and that [Fritz] Reinhardt, who has been thorn in Schacht's flesh, is to go; [Franz] von Papen went to Saar to vote and got himself into more trouble; according to French newspapers, he made statement there that result of Saar election was good indication of the way things would go in Austria, if the people had a chance to vote; the morning after the plebiscite, coins bearing the inscription (in German) "The Saar has shown it, Austria will show it" appeared in Austria; talked with Foreign Minister recently before he left for Geneva; he said he would be talking with representatives of all the countries with which non-interference pacts were to be negotiated, including [Josef] Beck of Poland; Foreign Minister states that he and Chancellor would go to London in February.

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0465-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1935 January 19   [Box 4 F29]

Typed Letter Copy, 16 p.

Encouraged about general situation; if Rome, Paris, and London maintain their unity, Germany will be powerless to continue agressive action; situation developing in right direction in Germany as more of the radical element are eased out of Government, but still a long way to go; Reichswehr may be able to take over without much blood shed; talked with Austrian Foreign Minister recently; while pleased with developments in general, he says Austria will not feel secure until she has a non-interference pact with Germany; Government knows money being sent from Germany for rebuilding Nazi organization in Austria; once danger from Germany is past, there will be a change in Austrian government, but whether change will be to monarchy or to a republic, no one knows yet; Vacuum Oil matter satisfactorily adjusted; has usually had good relations with U.S. correspondents in Europe; most American correspondents are competent, objective reporters; they have been helpful to Consulate and Legation as Consulate and Legation have tried to be helpful to them; occasional exceptions are [Charles] Flick-Steger, as reported earlier, and [Oscar Emil Wade] Werner, of the A.P., who seems to be pronounced Nazi; [Louis] Lochner came from Berlin to check on him and thinks he may be mentally unbalanced; [George E.R.] Gedye, an Englishman who is correspondent for N.Y. Times, is a good man and good writer, but a strong Socialist, he is completely out of sympathy with present Austrian government, and his convictions have colored some of his dispatches; correspondents' task difficult; they must try to keep their dispatches objective, whatever their personal convictions, they must get their material past the censors, and in Vienna, they must contend with the difficult press chief [Edvard] Ludwig; giving series of dinners at the house; gave one for Foreign Minister on the 12th, for the President on the 15th, and will give one for Chancellor on 23rd.

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Items 0466-0489   [Box 4 F30]

0466-00

[Moffat, Jay Pierrepont], Washington. To G.S. Messersmith, Vienna., 1935 January 22   [Box 4 F30]

Typed Letter Signed "P.M.", 4 p.

Has heard nothing from Dr. Adler or his committee; if he approaches Department, will allow him or his representative to read despatches and telegrams in Department's possession; copy of Dr. [Laurence] Duggan's letter Messersmith sent shows that events of last February unforgotten and unforgiven; relieved to hear Austrian government feels it can take care of any internal trouble; has been concerned, since Saar vote that Nazis in Austria should start new campaign to oust Schuschnigg; one foreign representative here says Europe has only three policies: (1) to encircle Germany and crush it; (2) to condone Germany's expansion to the southeast, or (3) to allow Germany to measure strength with Russia; must watch for effect of Saar vote on Hitler's government; England's position will be decisive; [Anthony] Eden, in Geneva, convinced England must assume active commitments on Continent to assure peace, but lacks full backing of his government and public opinion in England.

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0467-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1935 January 25   [Box 4 F30]

Typed Letter Copy, 1 p.

Calls attention to despatch No. 300 of Jan. 24 giving resumé of present Austrian situation; views expressed in line with those held by British and Italian colleagues in Vienna; relations with French colleague good, but difficult to learn what he really thinks.

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0468-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 January 25   [Box 4 F30]

Typed Letter Copy, 2 p.

Calls attention to despatch No. 300 of Jan. 24 regarding present Austrian situation; Foreign Minister verified in Paris reports in French newspapers of [Franz] von Papen's statement that if there were a plebiscite in Austria it would result as favorably for Germany as that of the Saar; Secretary-General [Franz] Peter in Foreign Office brought the statement to von Papen's attention, but he denied having made it; von Papen approached British Minister at public reception recently and said, "What is all this matter about pacts... too many pacts...pacts are made only to be broken;" he constantly makes himself ridiculous; Austrian official sources report things going well and progress is expected when Laval goes to London; trouble spots seem to be [Nicholas] Titulescu [of Rumania] and [Josef] Beck [of Poland]; well informed Yugoslavs and Hungarians content that their difficulties should be put on ice for a few weeks, to give time for a cooling off on both sides.

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0469-00

Manchester Guardian., 1935 January 26   [Box 4 F30]

Typed Copy, 1 p.

Enclosed with No. 473. Article on Germany's Austrian Policy; Germany careful to avoid anything which might lead powers to believe she is interfering in Austria's internal affairs, but at same time is promoting rebuilding of Nazi Party in Austria; tactics vary with the persons and occasions; suggestion that Germany would not object to a return of the Hapsburgs is attempt to win over Monarchists and also to lull government into belief that Germany has no designs on Austrian independence; report also spread that Reichswehr, not the Nazis, are the real rulers of Germany and that Reichswehr will respect Austrian independence.

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0470-00

[Geist, Raymond H.], Berlin. To [Jay Pierrepont] Moffat, Washington., 1935 January 26   [Box 4 F30]

Typed Letter Copy, 4 p.

Pencilled marginal notes in Messersmith's hand. American friend had interview with Hitler at Ober-Salzburg day after Saar plebiscite; Goering present; Hitler told friend Germany would sign no pacts; Goering leaving soon for Poland to sound out Polish government, not on Pacts, but on "Equality" question; matter will come to a head when decisions have been made in London during Flandin-Laval visit; learned from Foreign Office official Germany will make no commitments which would prevent modifying eastern frontiers; large concentration of troups in East Prussia; when friend asked Hitler if he abandoned all claim to Lorraine, Hitler looked at Goering and winked, implying that there were other ways than making territorial claims; obvious that he believes Germans in such frontier areas as Lorraine, Memel, and Silesia through internal agitation will demand a plebiscite; Hitler told friend that in few years time Hungary would be dependency of Germany and by end of 1935 Otto would be on throne in Austria; believes now Hitler regime will last at least a decade; many in country disagree with his policies, but do not actively oppose him; conflict between radical and conservative elements in Party continues because of Hitler's inability to take lead in various spheres of government; while he has genius for maintaining popular following, he is not capable of assuming directive in economics, finance, and social and cultural policies; hence his dependence on [Gottfried] Feder, [Hjalmar] Schacht, [Walther] Darre, [Alfred] von Rosenberg, and [Josef] Goebbels; Schacht has difficult problem finding sufficient foreign exchange to provide raw stuff for German industry and armament program and to enable government to continue public works program; shortage not yet acute.

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0471-00

Memorandum on European situation. Vienna., 1935 January 28   [Box 4 F30]

Typed Document, 3 p.

Rumored that [Anton] Rintelen and former Police Chief Steinhausl have been released and proceedings dropped; press, now reports them still under detention on charge of high treason; [Theodor] Habicht reported again provincial Party leader for Austria; listed as such in Führerkalender for 1935; from Party point of view in Germany he had never been deposed; Austrian legionaires reported again assembling in their old barracks in Bavaria; French opinion much disturbed over new wave of propaganda in Germany directed against Austria; England increasing pressure on Germany, and has agreed with France that there should be no recognition of German rearmament as long as Eastern and Danubian Pacts not completed; must consider situation Europe will face if Germany refuses to enter pacts considered in Rome; Germany isolated except for one possible ally, Poland; her political strength at low ebb; internal reorganization of government by destroying old provincial governments, has strengthened hold of Berlin; militarily Germany strong; has long passed the 100,000 men limit set by treaty; combined Reichswehr, S.S., and S.A. number easily 3,000,000; industrially, much disorganization which would rapidly disappear under new regime, but individual organization and equipment superior to anywhere else in Europe; socially, Germany is showing new spirit; in spite of protest from churches, Nazi propaganda has sown seeds of faith in Germany which appeals to masses and may become source of grave danger for Europe.

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0472-00

Memorandum. Vienna., 1935 January 29   [Box 4 F30]

Typed Document, 1 p.

Informed by reliable sources of German offensive underway to break through unity of London, Paris, and Rome; principal point of attack is London, where Germany seeks Anglo-German accord on basis of strict non-interference with British and Dominion problems in return for free hand on Continent; German propaganda in Austria that plebiscite necessary causing government some concern; fears joint Nazi demonstrations on Feb. 12 or 14.

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0473-00

Geist, Raymond H., Berlin. To G.S. Messersmith, Vienna., 1935 January 30   [Box 4 F30]

Typed Letter Signed, 1 p.

Enclosure: See No. 469. Sending this letter by pouch to Warsaw to be mailed from there; inclosing copy of article from Manchester Guardian dated Jan. 26 relative to Germany's Austrian policy; news item from Warsaw, dated Jan. 27, states Goering believed to have gone to Warsaw to get Poland's support for legalization of German rearmament.

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0474-00

[Geist, Raymond H.], Berlin. To [Jay Pierrepont] Moffat, Washington., 1935 January 30   [Box 4 F30]

Typed Letter Copy, 1 p.

No clippings with copy. Since writing on Jan. 26 two news items have appeared which bear on subjects mentioned in that letter; Manchester Guardian article of Jan. 26 clears up matter of German support for Hapsburg restoration and Guardian article on Jan. 28 from Warsaw correspondent bears out statement that Goering went to Poland not to discuss pacts but to sound out Poles on "Equality in Armaments"; clippings enclosed.

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0475-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 February 01   [Box 4 F30]

Typed Letter Copy, 8 p.

Demonstrations feared on Feb. 12 [anniversary of last year's demonstrations]; demonstrations, if they come, will probably be by Social Democrats and Communists, agitated by Nazis; Nazis themselves too disorganized and lack leadership; government believes police capable of handling situation; too much talk recently about monarchy; German pressure takes form of talk about plebiscite for Austria; whispering campaign started by Nazis, on instructions from Germany; as defense, Austrian mind turns toward monarchy, but Hapsburg Government in Austria would be as defenseless against Germany as present government; stability of present government of prime importance until question of Austria's sovereignty is established, and Legitimist agitation could be dangerous now; if monarchy does return to Austria, it should come when transition can be made with adequate safeguards and when it will not arouse antagonism of neighboring countries; restoration concerns not only of Austria but all of Europe; restoration would mean limited monarchy on English plan; Austria cannot afford extensive court with accompanying hangers on draining the treasury; Germany making tremendous effort to resist demands of England and France; she wants free hand in Europe and treaty revision without conditions; according to reliable sources, Germany has no intention of joining in any non-interference pacts if she can avoid it; when she feels herself strong enough she will make her own demands, and rearmament going on at great rate; Hitler still able to convince a few Englishmen of his peaceful intentions, but British Government under no illusions; if England, France, and Italy maintain solid front, Germany will have to give way; non-interference pacts will not solve all problems at once, but will bind Germany before the world, restrict her disturbing activities at home and abroad, and strengthen conservative element.

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0476-00

Messersmith, G.S., Vienna. Memorandum., 1935 February 05   [Box 4 F30]

Typed Document, 1 p.

Informed by Foreign Minister [Egon] Berger-Waldenegg Austria had had reply from Germany regarding non-interference pact; not altogether unsatisfactory, but Germany posed a number of questions; was inclined to think Germany merely stalling until London conversations; German attitude similar to that of Soviets before recognition; they want recognition of equality and armaments without conditions, leaving impression they will be reasonable afterward; article of Lord Lothian [Philip Henry Kerr, 11th Marquis of Lothian] in Times Feb. 1 an indication of how German promises are taken seriously; reply to Lothian article by [Wickham] Steed in Times of Feb. 2 shows how to maintain proper perspective.

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0477-00

[Messersmith, G.S.], Vienna. Memorandum., 1935 February 06   [Box 4 F30]

Typed Document, 2 p.

Saw [Ulf Torsten] Unden, Swedish Minister, today; he commented on dissatisfaction with Austrian government on account of predominence of church; dissatisfaction also with Schuschnigg, who can never be popular; had talk with Yugoslav colleague who said Foreign Minister had been pleased over recent speech of Prime Minister of Yugoslavia [Bogoljub] Yeftitch in which he came out openly for Austrian independence; colleague referred to German promises as meaning nothing; things, he said, going well in Yugoslavia; talked with Berger-Waldenegg; gave him copy of Department's release on breakdown of Soviet relations and pointed out position with Germany now analogous; Berger-Waldenegg in recent talk with [Eduard] Benes, was told that Czechoslovakia would have to stand by Austria; clear that if foreign support falls away, government here will swing into Nazi camp; informed by British Minister he had report some Nazis in July putsch now in their former positions, but report unverified; [Secretary Franz] Peter pessimistic as usual; he remarked that he was sorry to live in a world in which it was necessary to make pacts about things which should be taken for granted; saw Prof. [Joseph] Redlich yesterday, who emphasized another regime in Germany would mean respite, but Germans so filled with idea of superiority that any German government will find it difficult to respect rights of others; pointed out many Germans opposed to Christianity because it provides curb on Germany's ambitions; exemplified by recent revival of Wittikind[Hermann Witekind ?]drama; Redlich wants to see Hull when he goes to America; told him would try to arrange it through Moffat; an old man, but has ripe ideas worth listening to.

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0477-01

G.S. Messersmith. Memorandum of conversation with Fritz Ross, former president of Ullstein business in Germany., 1935 February 07   [Box 4 F30]

Typed document , 1 p.

Enclosed with No. 477 Mr. Ross is pessimistic as to long outlook, but believes situation will not become acute for some time. No doubt as to the real aims of Germany. German people have little sympathy for the present program, but leave things to a clique.

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0478-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 February 08   [Box 4 F30]

Typed Letter Copy, 11 p.

Prospects good for a peaceful anniversary of Feb. 12; some nervousness, but precautions have been taken; Germany using diplomatic channels to spread her propaganda; German diplomatic officers in capitals all over this part of world - and possibly in Washington - speak of weakness of Austrian government, its lack of popular support, dissension within government, and likelihood of change; rumors deliberately fabricated; informed by Foreign Minister that he and Chancellor will go to Paris on Feb. 20 and then to London; visits should have some good effects; Winter tourist season promises to be excellent; Prince of Wales arrived recently for several weeks' stay; Foreign Minister pessimistic concerning German attitude following London conversations; some German circles did not expect such far-going agreements in London; Austrian government convinced Germany has not given up her Austrian aspirations and that she has no intention of signing any pacts; Germany now playing for time, by asking questions, drawing out negotiations, trying to drive bargain; if foreign support for Austria falls away she will swing into Nazi camp, not from preference, but because she may think it wiser than waiting for Germany to come in and take the country; misjudged effect of Saar vote in Germany; thought Europe might have a breathing spell, but reports not encouraging; no doubt about what Hitler and Party want; they want Memel, Alsace-Lorraine, the Ukraine, and Austria; under other leadership Germany could be good neighbor, for Germans, though warlike have shown themselves docile under strong leadership; German attitude now similar Russia's before recognition by U.S.; Germany wants rearmament and recognition of equality without conditions, trying to give impression she will be reasonable afterward, but she will be no more reasonable than Russia has been; article by Lord Lothian [Philip Henry Kerr, 11th Marquis of Lothian] in Times of Feb. 1 shows fine spirit which might apply to another Germany, but not to Hitler Germany; Wickham Steed's reply in Feb. 2 Times shows that he knows and faces the facts; concerning London conversation, significant feature statement that after Germany has been communicated with and no agreement in sight, France and England will consult again; English facing what definite refusal by Germany would mean, and want to avoid mistakes made in 1914; England feels herself threatened now from the air more than she did in 1914 by growing German fleet; remembers conversation with Goering in June 1933; pointed out to Goering that England would be concerned over Germany's air power and Goering replied that they knew how to keep England quiet; recent revival of medieval play in which German pagan spirit is glorified and Christianity ridiculed as weakness; Party struggle in Germany for a coordinated church an expression of the feeling that Christianity with its morality and teachings is a restriction on a warlike people like the German; Professor [Joseph] Redlich called recently before leaving for Harvard and quoted other passages from German literature expressing same idea; Germany forced to abandon her economic and financial programs but her political and cultural programs are as firmly entrenched as ever; encouraged by attitude now taken by other Danubian states.

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0479-00

Selby, Sir W[alford], [Vienna]. To Minister [G.S. Messersmith], [Vienna]., [1935] February 08   [Box 4 F30]

Autograph Letter Signed, 3 p.

Thanks Messersmith for showing him letters; summaries of situation are of great help; wishes he could make them available in certain quarters at home.

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0480-00

[Moffat, Jay Pierrepont], Washington. To G.S. Messersmith, Vienna., 1935 February 12   [Box 4 F30]

Typed Letter Signed "P.M.", 4 p.

Believes [Raymond H.] Geist should for the present remain in Berlin, where his work is outstanding, but when time comes for his transfer, will recommend to Personnel Board he be given assignment where his political ability will tell; will be delighted to see Messersmith when he comes in April and have chance to exchange news and opinions; will send memo to FP [Division of Foreign Service Personnel] and FA [Division of Foreign Service Administration] requesting that orders be framed so that Messersmith can have the days he wants in Berlin; glad to know Austrians feel they have local situation well in hand; has heard from confidential sources Germans expect Otto to be on Austrian throne by end of 1935, which will give them an excuse for closing in on Czechoslovakia and opening up way to East; waiting to hear Hitler's reaction to Franco-British approach of last weekend; still recuperating from Senate's vote against ratification of World Court Protocols; makes the role of U.S. representatives in Europe more difficult.

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0481-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 February 14   [Box 4 F30]

Typed Letter Copy, 6 p.

One brief demonstration by Socialists or Communists in Vienna on Feb. 12; whole country otherwise quiet; though Austria quiet and government more strongly established than ever, some of leaders are less confident; they feel that close cooperation with Germany is essential, but do not desire political union; failure of Germany to make any move toward appeasement following talks in Rome and London has created new fears; government still uncertain of English position; though England has definitely committed herself to support Austria it was not with full approval of Parliament, and some English newspapers have grossly misrepresented Austrian situation; [Salvador de] Madariaga [y Rojo] in Vienna recently got wrong impression; seemed to think Austrians didn't know what they wanted; talked with British and French colleagues and gathered from them no particular subjects to be discussed when Chancellor and Foreign Minister visit Paris and London; principal object of visits to strengthen prestige of Government; first official German reaction to London conversations to be handed in today; no satisfactory answer expected.

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0482-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1935 February 15   [Box 4 F30]

Typed Letter Copy, 7 p.

[Oscar Emil Wade] Werner returned to Vienna recently; talked with him since his return; seems to be mentally distrubed; Associated Press may have to bring him home; shows pronounced Nazi tendencies, which Austrian government is aware of,and he may get into trouble with authorities; will talk to [Kent] Cooper of A.P. about him while in U.S.; [Anton] Rintelen to be tried soon for high treason; government has been delaying trial because it prefers not to put him on stand; no doubt about his guilt, but he might say things on stand which would make bad impression and embarrass many people; Dr. [Fritz] Hamburger tried and sentenced to life imprisonment; hopes foreign press doesn't make too much of Rintelen's trial; bound to be mud slinging; monarchist talk again receding into background; Anglo-American Press Association had luncheon at which [Baron Friedrich] von Wiesner, leading legitimist, spoke; together with British colleague "decided that we both had another engagement that day;" [Alfred] Kliefoth and [Cecil Wayne] Gray from the Legation attended; they reported that von Wiesner stated Otto would have to come back as Austrian monarch without Hapsburg pretensions and that Archdukes would have to live on their own incomes; at ball of City of Vienna a week ago Archduke Eugene arrived and made public entrance ahead of President; received much attention; after Saar plebiscite [Franz] von Papen opened book in main reception room of German Legation in which the "enthusiastic" could inscribe their congratulations; many German citizens live in Vienna and they naturally went, but police discovered all sorts of people were using it as opportunity to get inside Legation; von Papen was called to Foreign Office and asked not to receive any more people for this purpose; Nazi activities in Austria now confined to propaganda; Secretary of French Legation informed that Paris and Geneva had proof that many prepared votes were employed in Saar election; will leave end of March for home unless situation demands presence here; anxious to see ailing mother and looking forward to seeing Moffat.

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0483-00

Memorandum on E.I.C. [European Information Council] Service., 1935 February 18   [Box 4 F30]

Typed Document Copy, 4 p.

E.I.C. in Paris can provide useful service and its existence justified; confidential nature of letters it sends to various diplomatic missions must be safeguarded; letters should be sent by regular courier, not a clerk instructed to gather information; in offices letters should be seen only by Foreign Service Officers and by trusted clerk in charge of files; letters should not contain direct quotation from confidential despatches or close paraphrasing.

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0484-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 February 23   [Box 4 F30]

Typed Letter Copy, 6 p.

Tourist business given impetus by visit of Prince of Wales; visit unofficial and devoted to pleasure; Mr. and Mrs. Simpson in Prince's party; Mrs. Simpson said to be charming and intelligent; Chancellor and Foreign Minister left on schedule for Paris and will go to London tomorrow; official reception and Paris press cordial; may receive some snubs from Socialist press in England; German press shows annoyance at visit; on whole, believes visit will have good effect; German reply to London and Paris on London conversations most unsatisfactory; reply emphasized air pact and avoided other issues; indicated desire for direct conversations between London and Berlin; British Cabinet refused separate discussion of air pact and Berlin gave in, agreeing to treat with London on whole basis of London conversations; German economic difficulties may have put leaders in more reasonable frame of mind.

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0485-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1935 February 26   [Box 4 F30]

Typed Letter Signed, 2 p.

Thanks Messersmith for recent letters; Secretary [Cordell Hull] at Useppa Island, Florida for rest, and President at Hyde Park for same reason; trying to put through trade agreement with Belgium; difficult with both Secretary and President away but must be done within day or two; much pressure against any reduction in tariff, but cannot secure benefits without giving some in return; morning press announces forthcoming visit of [Sir John] Simon to Berlin; results should be of great interest.

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0486-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 February 27   [Box 4 F30]

Typed Letter Copy, 13 p.

Situation quiet in Austria; less organized opposition to Government; Socialists and Communists lack leadership; Austrian social insurance system in serious difficulty; may be necessary to reduce payments, to increase taxes, or put budget out of balance; Austrian Nazis disorganized and leaders discouraged; no prospect of more money from Germany; further blows to Austrian Nazis were [Fritz von] Tschirschky incident and dissolution of Nazi organization in Upper Austria; von Tschirschky [und Boegendorff], special attaché at German Legation, no Nazi and open in his criticism of Nazi policy, was instructed to return to Berlin; instead he went to Switzerland, where his family is expected to join him; [Franz] von Papen ordered to hunt von Tschirschky and see that he return to Berlin; von Tschirschky had contact with Austrian Legitimists; he favored return of Hohenzollerns in Germany; execution in Germany of two women [Baroness Benita von Falkenhayn and Frau Renate von Natzmer] as "spies" has not helped Nazi cause; believes visit of Chancellor and Foreign Minister to Paris and London has given them increased confidence; both were prepared to talk about Hapsburg question; Schuschnigg a fine man, but does not like his job, and like most of the men in his government, is a monarchist at heart; England and France will agree that restoration is an internal matter, but will certainly advise against it for the present; according to press comment, both Schuschnigg and Berger-Waldenegg made good impression; British Cabinet's decision not to engage in separate conversations with Germany on air pact shows England's increasing recognition of real situation; British procedure regarding visit to Berlin a masterpiece of diplomatic strategy; London did not give Berlin satisfaction of visit to Berlin alone, but let it be known visits would also be made to Warsaw and Prague, and probably Moscow; atmosphere for approaching conversations of [Sir John] Simon in Berlin not altogether favorable; influences at work in England which make negotiations difficult; Berlin will bluff, be very angry, and use same old tactics; England has real responsibility and it is hoped she will remain firm; [Anton] von Rintelen trial again postponed.

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0487-00

Extracts from Hitler's speech in Munich on Feb. 24, translated into English., 1935 February 28   [Box 4 F30]

Typed Document Copy, 2 p.

Enclosed with No. 488. Emphasized necessity for fighting for Party to gain power; did not expect solidarity, but "there had to be a will in Germany and all others had to submit to it."

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0488-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1935 March 01   [Box 4 F30]

Typed Letter Copy, 6 p.

Enclosure: See No. 487. Rumored that [Franz] von Papen is to resign or be recalled; von Papen no doubt upset by [Fritz] von Tschirschky incident; his mission in Austria a complete failure; resignation or recall will not make Austro-German relations better or worse; information received from Berlin indicates increased strength of radical elements in Nazi Party; appending extracts from Hitler's speech in Munich on Feb. 24; has been informed speech was delivered in raw and most belligerent manner; on surface business looks good in Germany; many factories running night and day and businesses showing profit, but whole industrial activity based on the "Arbeitsbeschaffungswechsel" which now amounts to 12 billion marks, and [Hjalmar] Schacht informed Party limit had been reached without open inflationary measures; mark too high; cost of living high; cannot increase wages because production costs too high; raw material situation serious; cannot get cotton; [Julius] Lippert, in speech before American Chamber of Commerce in Berlin threatened that if U.S. ever expected to sell cotton to Germany again she had better let the Germans have some now; latest radical development in Germany the proposed decree limiting parental authority over children and transferring much of it to the state; Bishop Müller had interview with Hitler and indications are that he received further instructions to carry through the Party program for the Church; trial of [Anton] Rintelen not postponed as reported in letter of Feb. 27 to Phillips; scheduled to begin tomorrow; hoping to sail from Hamburg on March 28 for brief stay at home.

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0489-00

[Moffat, Jay Pierrepont], Washington. To G.S. Messersmith, Vienna., 1935 March 02   [Box 4 F30]

Typed Letter Signed P.M., 3 p.

P.S. Has sent Messersmith's letter about Prof. [Joseph] Redlich to Secretary and Under Secretary. Hopes discouragement of Austrian Government is only passing phase; doubly hard for European powers to stand firm if there is defeatism in Austria itself; Messersmith's comments on von Papen interesting; his maladroitness probably results from fundamental stupidity; FA [Foreign Service Administration] has arranged for Messersmith's five-day period in Berlin on way home; looking forward to seeing him in early April; appreciates Messersmith's hesitation about leaving post at this time, but the "crisis" in Austria is endemic, and he should not forego trip home; [Alfred W.] Kliefoth has had considerable experience and Legation will be in good hands.

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Items 0490-0498   [Box 5 F31]

0490-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 March 09   [Box 5 F31]

Typed Letter Copy, 17 p.

Chancellor and Foreign Minister pleased with outcome of visits to Paris and London; they met receptive attitude concerning reciprocal pacts, but had it impressed upon them they would have to keep restoration question in background for the present; [Anton] Rintelen trial began this week; Rintelen charged with indirect connection with July 1934 putsch; obviously guilty, but will probably be given light sentence based on nature of evidence presented; trial fairly conducted; other trials of Social Democrats, confined for months, indefinitely postponed; Nazi sentiment among masses in Austria weaker, but some activity among Socialists and Communists; economic situation improves slowly, but consumptive power of masses declining; good part of loan approved by League will be put into public works program which should relieve unemployment; many Hapsburgs present at public balls and entertainments sponsored by members of Government for benefit of "Winterhilfe" [Winter Relief] program; no significance as far as restoration is concerned; their presence merely used as drawing card for public, but it has effect of making Austria's neighbors uneasy; [Sir John] Simon's visit to Berlin postponed because of Hitler's "illness"; real reason is Germany's wish for more time to face demands Simon will make; publication of British White Book and consequences of [Major G. B.] Hennessy's interview [with Hitler, in which Hitler is reported to have commented on Austrian plebiscite] showed Hitler what they would have to talk about and temper of British representative; incident should show some of the English that they have to deal with a pathological subject and what they can expect from conversations or agreements with such a head of State; informed by Foreign Minister that Austrian Government made formal protest in Berlin over the Hennessy interview and that Hitler had denied it in spite of evidence as to facts; British colleague [Sir Walford Selby] pointed out interesting parallel; just before British entered war in 1914 German Government offered to refrain from offensive along North Sea in return for British neutrality; Germany using same tactics today with offer of separate air pact with England; [Franz] von Papen complained to Foreign Minister that London and Paris visits were directed against Germany and that "Jewish press of Ludwig" (head of Austrian Press Bureau and not a Jew) unfriendly to Germany, finally remarking, "Yes, you have your French and English friends now and can have your independence a little longer"; Foreign Minister informed that [Fritz von] Tschirschky would not go back to Germany; reported to be somewhere in Austria; his family still in Vienna, their home heavily guarded; [Hjalmar] Schacht in speech at Leipzig Fair said everything he is doing is with the will and approval of Hitler; clear case of "passing the buck"; [Anthony] Eden to go ahead with visits to Warsaw and Moscow in spite of postponement of Simon visit to Berlin; split in Labor Party in England creates difficulty for Government; Germany still hopes to break through London-Paris-Rome front through Labor in England; other circles in England favor credits and loans for Germany; British foreign policy a matter for Britain, not individuals or a party, but Government needs united public opinion behind its policy; some selfish interests even in U.S. favor credits and loans for Germany; even if Germany agrees to full London proposal and signs pacts, U.S. should wait to see what develops before giving aid of any kind; German activity abroad now less open and violent, but continuing in its subterranean work.

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0491-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 March 15   [Box 5 F31]

Typed Letter Copy, 4 p.

Leaving Vienna March 20 for Berlin and sailing March 26 from Hamburg on Washington, arriving New York Apr. 4; will spend few days with mother and go to Washington Apr. 8; first production of American opera in Austria to be given in Vienna Mar. 19; fine work [Caponsacchi] of Richard Hageman; was asked to serve as patron of premiere with Chancellor, Foreign Minister, and Minister of Education; one of Maxwell Andersen's historical plays to be produced here before end of season; believes this kind of cultural exchange more help than formal cultural agreements; [Anton] Rintelen sentenced to life imprisonment; new evidence turned up late in trial and established guilt firmly; no change in internal situation in Austria; von Papen as usual making himself obnoxious; hopes to bring additional news from Berlin; atmosphere cleared for English conversations in Berlin; Hitler's statement to Major [G. B.] Hennessy, his postponement of [Sir John] Simon's visit, and Goering's declaration on air rearmament have shown just where regime stands.

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0492-00

Messersmith, G.S.Vienna. Memorandum of conversation with Chancellor [Kurt] Schuschnigg., 1935 March 19   [Box 5 F31]

Typed Document Copy, 2 p.

Saw Chancellor by appointment at 10:30 today; told him trip home was chiefly for personal reasons, but was also anxious for first-hand view of conditions at home; Chancellor interested in reports of President's [Roosevelt's] diminished prestige; reassured him that President was stronger than ever; during conversation Chancellor called to telephone and was obviously pressed for an unpleasant decision; he said, "But that is not possible; it would be unconstitutional"; those who consider Austria such an autocratic state should have heard him; pointed out to Chancellor Austria had become focal point in maintenance of peace and importance of post he and Foreign Minister occupied; discussed [Franz] von Papen's activities and remarks; at request of British colleague, helped Chancellor to understand British position; Chancellor an intellectual and by no means weak, but needs encouragement occasionally.

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0493-00

Messersmith, G.S., [Vienna]. Memorandum of conversation with Foreign Minister [Egon Berger-Waldenegg]., 1935 March 19   [Box 5 F31]

Typed Document Copy, 4 p.

Foreign Minister gave assurance that he would be "firm as a rock" in resisting German pressure; as long as Austrians feel Italy, France, and England will stick together, there will be no giving way; Italian-Yugoslav relations reported improved; approached by colleague inquiring as to Americans who might be interested in acquiring part-ownership of Vienna newspaper; agreed to bring matter to attention of interested persons, but could take no direct action; [Tibor] Eckhardt and [Julius] Goemboes of Hungary get on well together; supposed trouble mostly rumor, lunched with Turkish colleague on Mar. 18; other guests were French colleague [Gabriel Puaux], Secretary Peter of Foreign Office, and [Franz] von Papen; von Papen treated "as though he had smallpox"; had long conversation with Puaux regarding German situation; met Dr. Bloch-Bauer at dinner at [Alfred] Kliefoths; he reported at recent Berlin automobile show every truck adaptable for use as gun transport; Col. [Martin C.] Shallenberger, Military Attaché, reports Gen. Muff, German Military Attaché in Vienna, in trouble; a year ago he had openly opposed Nazi program; now to keep his position he must become instrument of Nazi regime.

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0494-00

[Messersmith, G.S.], [Vienna]. Memorandum., 1935 March 19   [Box 5 F31]

Typed Document Copy, 3 p.

Bloch-Bauer of opinion that moral and economic blockade only effective weapon against Nazi Germany; British colleague [Sir Walford] Selby concerned that Austria might get wrong impression over apparent lack of unity between London and Paris; requests that Messersmith explain British attitude to Chancellor and Foreign Minister; Selby feels no good can come of [Sir John] Simon visit to Berlin, but it must take place; Hitler statement that Otto would be on throne of Austria before end of year merely Nazi policy of stirring up trouble; he knows he can overthrow an Austria with a Hapsburg on the throne as easily as he can with the present government; he knows too restoration would lose Austria some friends.

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0495-00

[Messersmith, G.S.], Berlin. Memorandum of activities and conversations during five-day visit to Berlin., 1935 March   [Box 5 F31]

Typed Document Copy, 37 p.

Covers conversations on general European situation, British attitude, coming visit of Sir John Simon to Berlin, German economy, interview between Crown Prince [Louis Ferdinand] and Hitler, church struggle in Germany, Jewish question, position of Reichswehr, questionable [London] Times articles, apparent change of attitude of Times Berlin correspondent [Norman] Ebbut, and reasons therefor, Japanese German understanding, work of [Joachim] Ribbentrop in England, Danzig question, impossibility of German people getting real news and its effect upon public ópinion; conversations with L.L. [Louis Lochner], Ambassador William E. Dodd, Raymond H. Geist, Rabbi [Morris] Lazaron, correspondent [Otto] Tolischus, French Ambassador [André] Francois-Poncet, Belgian Ambassador [André O.C.] de Kerchove, Austrian Minister [Stefan] Tauschitz, representative of Boston Bank in Berlin, Herbert C. de Roth, and British Ambassador Sir Eric Phipps among others.

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0496-00

Messersmith, G.S., Berlin. To Sir Walford Selby, Vienna., 1935 March 25   [Box 5 F31]

Typed Letter Copy, 4 p.

Has had pleasant visit in Berlin, lunching and dining with friends every day since arrival; talked with Sir Eric [Phipps]; he agrees war inevitable if present regime remains in Germany; according to reports, Hitler and his entourage in exalted mood, reminiscent of 1914 when Germans thought they could stand up against the world; Hitler convinced England will not make military move, France unable to because of internal situation, Russia not to be feared, and Italy's power negligible; was informed Germany intends next to take over Danzig; Hitler's last move with respect to conscription and abrogating Article V [of the Versailles Treaty] increased his popularity in Army circles opposed to National Socialism; increased support of Party by Army most important change noted in situation; no disagreement among those talked with in Berlin as to aims of Nazi government; leaving 26th for Hamburg and sailing in the evening.

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0497-00

Messersmith, G.S., Vienna. To Tom Wilhelm, New York., 1935 May 24   [Box 5 F31]

Typed Letter Copy, 1 p.

Wilhelm's letter of April 22 received just before sailing; dined with President a few days before leaving and would have been glad to try to arrange for Wilhelm to see him if letter had arrived before then; suggests if Wilhelm goes to Washington he see [Jay Pierrepont] Moffat, in charge of Division of West European Affairs of State Department; information Wilhelm can give would be helpful.

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0498-00

Messersmith, G.S., Vienna. To Jay Pierrepont Moffat, Washington., 1935 May 27   [Box 5 F31]

Typed Letter Copy, 2 p.

Enclosing letter received just before sailing from Tom Wilhelm, formerly Berlin correspondent; Wilhelm a trustworthy correspondent; wrote to him suggesting if he goes to Washington he should get in touch with Moffat; believes information Wilhelm refers to is alleged connection between Hearst and Hitler press services.

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Items 0499-0517   [Box 5 F32]

0499-00

"Keeping Peace in Europe" from London Times., 1935 June 04   [Box 5 F32]

2 cols., mounted on 1 sheet. Clipping dealing with Anglo-German relations and role of League of Nations.

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0499-01

"Reign of Law in Europe" from London Times., 1935 June 11   [Box 5 F32]

2 cols., mounted on 1 sheet. Clipping dealing with Anglo-German relations and role of League of Nations.

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0499-02

"Anglo-German Relations" from London Times., 1935 June 13   [Box 5 F32]

2 cols., mounted on 1 sheet. Clipping dealing with Anglo-German relations and role of League of Nations.

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0500-00

Messersmith, G.S., Vienna. Despatch No. 448 to Secretary of State [Cordell Hull], Washington., 1935 June 05   [Box 5 F32]

Typed Document Copy, 9 p.

Summarizes Austria's internal and external position; factions, except for Nazis, have drawn closer together in support of government; [Kurt] Schuschnigg respected by all and he and Vice-Chancellor von Starhemberg work well together; they plan to consolidate various military groups into one army; Nazis not as numerous as had been supposed, but still very active in disseminating propaganda, supplied along with money, by Germany; Italy, France, and England continue to assure Austria of their support; Austrian economy shows some improvement.

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0501-00

U.S. Department of State - Assistant Secretary, Commercial Office., 1935 June 06   [Box 5 F32]

Typed Document Copy, 8 p.

Compilation of statistics respecting jurisdiction of Department of State in Commercial matters.

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0502-00

1935 June 06   [Box 5 F32]

Typed Document Copy, 3 p.

Enclosed with No. 506. Summary of address delivered by Edvard Ludwig, Chief of the Press Bureau of the Austrian Government before Austrian Association of Catholic Students on situation of the press in Austria.

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0503-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 June 06   [Box 5 F32]

Typed Letter Copy, 5 p.

Discusses policy change of London Times since January; news stories from Germany for a time remained factual but editorial comment definitely for appeasement; now Berlin correspondents complain they have orders to tone down their despatches; other English press beginning to show same tendencies; British Foreign Office ready to face facts, but apparently at odds with Times.

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0504-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 June 06   [Box 5 F32]

Typed Letter Copy, 17 p.

Returned to Vienna from leave on May 18; found situation in Austria fundamentally unchanged; Foreign Minister reports Government stronger than ever and fears no difficulties from within; German Legation center for Nazi propaganda in Austria; no longer concerned about [Franz] von Papen, who promises anything but performs nothing; economic and financial situation improves slowly, though wages still too low; Government following closely developments in Europe, especially German activity in London, Paris and Rome; rumors in Austria of Italian rapproachment with Germany and possibility of Italy leaving League; toward end of March prospects for peace were brighter through England's apparently firmer attitude; now Italy's Abyssian adventure and Hitler's Reichstag speech have again clouded issue and England not yet ready to face facts; English know Hitler and his crowd totally unreliable, but by treating them as decent hope to hold them to some of their promises; England especially anxious to conclude air pact with Germany; victory of Heinlein Party in Czechoslovakia disturbing; Austrian relations with Hungary and other Danubian states satisfactory; Goering having no success in his visits to Balkan States and Yugoslavia; Germany signed commercial treaty with Rumania, though Rumania will find it disappointing; [Nicolas] Titulescu [Rumanian Foreign Minister] restive lately because he thinks [Eduard] Benes plays too prominent a part in affairs of Little Entente; Rome Danubian Conference postponed; dangers in delay; gives Germany more time to stir up trouble; Italy in difficult position between aspirations in Abyssinia and objections of France and England; unless something unexpected happens, no reason to fear Italian-German rapproachment; Mussolini one head of state in Europe with no illusions about Hitler; [Hjalmar] Schacht says Germany has reached limit of indebtedness; only long-tern forced loans from savings banks and private insurance companies keep economy from collapsing; Schacht told [Alfred] Kliefoth that continued U.S. refusal of credits and trade privileges would only embitter Germans and strengthen Nazi regime; ridiculous reasoning; [Joachim] Ribbentrop told Hitler he had made progress in England in reassuring public about Germany, but to continue to do so, necessary to let up in church and Jewish persecution; according to reliable source, Hitler told Ribbentrop when he wanted his advice on those questions he would ask for it; question of war or peace in Europe hinges on attitude of England; spread of Nazi ideology more dangerous than political expansion of Nazi Government; majority of German people still sound, but docile, and direction they take depends upon their leadership.

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0505-00

Messersmith, G.S., Vienna. Memorandum., 1935 June 11   [Box 5 F32]

Typed Document, 1 p.

John O. Crane, who lives in Italy, believes Mussolini will push for rectification of Abysinnian frontiers and other concessions, but doubts he will drive the venture to point of war; Crane thinks German Italian agreement not impossible, and Austria may be sold out; Alfred Tyrnauer called at Legation; said one of Heimwehr leaders told him [Ernst von] Starhemberg was boss and could get rid of others when he chose.

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0506-00

Messersmith, G.S., Vienna. Despatch No. 454 to Secretary of State [Cordell Hull], Washington., 1935 June 13   [Box 5 F32]

Typed Document Copy, 6 p.

Enclosure: See No. 502. Transmitting summary of address by Dr. Edvard Ludwig, Chief of Press Bureau of Austrian government,on situation of press in Austria; thinks Ludwig not altogether frank; Austrian press, though government controlled, is comparatively free; newspapers may publish anything so long as it does not tend to undermine the government; some criticism is permitted; foreign correspondents stationed in Austria have no difficulty in sending out their news, but they frequently have trouble getting the news from official sources.

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0507-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 June 14   [Box 5 F32]

Typed Letter Copy, 4 p.

Prospects good for tourist season; Government remains calm despite disturbing information about German diplomatic activity in London, Rome, and Belgrade; Italian minister received telegram from Mussolini saying Italy would under no circumstances desert Austria; British Minister returned from brief visit to London and brought further reassuring information as to English attitude; Austria's only fear for the present is that when Germany's economy reaches point of collapse, Germany will seek a way out in direction of Austria; Austrian Legion reported regrouped, rearmed, and moved closer to Austrian frontier; Hitler had long talk with [Theodor] Habicht, his principal agent in Austrian matter; Mussolini, noting British receptive or wavering attitude toward German approaches, now using same aggressive tactics as Hitler; British colleague [Sir Walford Selby] after conversations with [Stanley] Baldwin and [Baron Robert Gilbert] Vansittart thinks England will face facts; circulation of London Times dropped since change of policy; "modest" demands of Ribbentrop during Naval Conference in London made impression but mean nothing; read with interest Secretary's recent speech on trade agreement program and those of [Francis B.] Sayre and [Henry Francis] Grady; regrets [Jay Pierrepont] Moffat leaving Department but predict brilliant career for him in the field; glad [James Clement] Dunn will succeed Moffat.

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0508-00

Messersmith, G.S., Vienna. Despatch No. 458 to Secretary of State [Cordell Hull], Washington., 1935 June 17   [Box 5 F32]

Typed Document Copy, 13 p.

Enclosure: See no. 509. Oberlaender Trust founded by Gustav Oberlaender, German born American citizen of Reading, Pa. and wealthy manufacturer; object of trust to stimulate cultural relations between U.S. and Germany by sending American professors, students, editors, and city officials to Germany; trust was performing useful service until National Socialists came into power; Oberlaender, during visit to Germany, called at Consulate and asked advice as to continuing trust; was advised to send fewer visitors but for longer periods in order that they might get a true picture of the situation; someone arranged interview with Hitler for Oberlaender; Oberlaender in many respects a worthy man, but very vain and everything was done to flatter his vanity; since then, the Oberlaender Trust has intensified its activities and has become a Nazi propaganda machine; its fellows go to Germany, are shown just what the Nazis want them to see, and return to America with glowing reports.

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0509-00

Translation of pamphlet concerning Oberlaender Trust and Carl Shurz Foundation. , undated   [Box 5 F32]

Typed Document Copy, 3 p.

Enclosed with No. 508.

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0510-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 June 20   [Box 5 F32]

Typed Letter Copy, 10 p.

Austrian Government taking definite action in clearing out Nazi sympathizers in government offices, irregular military organizations, and youth organizations; despite trends outside Austria, Austrian leaders seem not unduly disturb ; progress slow in unification of military organizations; the Sturmscharen, Schuschnigg's private army, though smaller than the Heimwehr, represent a higher type and are opposed to unification; England's policy in treating with present German regime dangerous; Naval pact concluded; air pact next, and way paved for further concessions in way of credits and trade privileges; British Foreign Office knows situation, but must consider public opinion; London Times present appeasement policy not helping; British attitude complicates matters with Paris and Rome; Mussolini now determined to push ahead with Abyssinian program even to point of war, regardless of British objections; he doubtless feels if Hitler can get away with anything, so can he; [Ramsay] MacDonald reported planning trip to U.S.; England feels need of U.S. support and sympathy; Anglo-American cooperation usually a good thing, but if Englandcontinues present policy of appeasement, U.S. support should be withheld; German internal situation desperate; after taking half billion [marks] from private savings in January and half billion from private insurance companies in June, [Hjalmar] Schacht hard put to find more money to keep public works program going; [Anthony] Eden going to Paris today and then to Rome; he will have difficult time convincing Paris and Rome that England adheres to Anglo-French agreement and the Stresa program.

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0511-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1935 June 21   [Box 5 F32]

Typed Letter Copy, 7 p.

No clippings with copy. Reports on character and activities of [Franz] von Papen, German Minister to Austria; von Papen makes no progress with government nor with Austrian society; he attends all public functions to which all diplomats are invited but is seldom invited to private homes; at public functions he pushes himself into lime light and assumes precedence to which he is not entitled; complained that Cardinal would not see him, and tried to enlist help of highly placed Catholic friend, but friend refused; does some entertaining at German Legation, but few attend if they can avoid it; certain that German Legation is a center for disseminating Nazi propaganda; P.S. (dated June 22) tells of von Papen trip to Budapest about which two newspapers give conflicting information; clippings appended; reported that money for Nazi organization coming in to Austria through Hungary from Germany.

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0512-00

Messersmith, G.S., Vienna. Despatch No. 473 to Secretary of State [Cordell Hull], Washington., 1935 June 28   [Box 5 F32]

Typed Document Copy, 2 p.

Austrian Cabinet has decided to prolong term of President [Wilhelm] Miklas; Miklas' term was to have expired in Oct. 1935 at which time a general election was to be called as provided in constitution, but leaders felt election not desirable at this time.

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0513-00

Messersmith, G.S., Vienna. To Ambassador William E. Dodd, Berlin., 1935 July 01   [Box 5 F32]

Typed Letter Copy, 9 p.

Would like to compare impressions with Dodd; Ambassador [Hans] Luther still pressing for trade negotiations with U.S.; while in U.S. on leave was invited, along with [John Campbell] White, also on leave, to meeting in [Francis B.] Sayre's office to discuss matter of negotiation; strongly advised against negotiating any trade agreement with Germany; no agreement with Germany would be advantageous to U.S.; Germany would keep an agreement only so long as it pleased her, and she is in no position to keep her end of agreement even if she wanted to; any agreement with her would only give moral support and bolster a regime which is threatening the peace of Europe; information received from Germany indicates economy in desperate situation; political and economic situation in Austria much improved, but depends on external support; invites Ambassador and Mrs. Dodd for holiday in Vienna.

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0514-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1935 July 01   [Box 5 F32]

Typed Letter Signed, 2 p.

Glad to have Messersmith's views regarding [London] Times change of policy; British naval agreement with Germany caused stew in Paris; interested to hear Sir Arthur Willert coming to U.S. in Autumn; will be glad to renew friendship; [Jay] Pierrepont Moffat already departed and [James Clement] Dunn installed as Chief of Western European Division; will miss Moffat, but Dunn will be excellent substitute.

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0515-00

Messersmith, G.S., Vienna. To Herbert Feis [Economic Adviser, Department of State], Washington., 1935 July 02   [Box 5 F32]

Typed Letter Copy, 3 p.

Calls attention to despatch No. 466 of June 25 covering developments in Austrian economic situation; Austria's destiny depends upon outside support; England would like to sidestep her responsibility; favorite saying there is that Austria is not Belgium; if Germany succeeds in taking over Austria it is merely first step toward economic and political control of Southeastern Europe and inevitable war; recent German efforts in London for purpose of calming public opinion to prepare way for credits, raw materials, and improved trade relations; enclosing copy of letter to Ambassador [William E.] Dodd [see entry No. 513]; because of economic and financial factors involved, thinks Feis will be interested; very hot spell in Vienna, but will stay in spite of heat; so much happening every day one must keep in touch; read with interest Feis' article in Foreign Affairs.

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0516-00

Messersmith, G.S., Vienna. Despatch No. 475 to Secretary of State [Cordell Hull], Washington., 1935 July 03   [Box 5 F32]

Typed Document Copy, 7 p.

Reports conversation between German Minister Franz von Papen and Austrian Minister of Foreign Affairs Baron [Egon] Berger-Waldenegg; von Papen raised question of improving relations between their countries; complained Austrian press unfavorable to Germany; Foreign Minister replied Austrian press at least factual which could not be said of German press; von Papen stated Germany had no designs on independence of Austria or desire to interfere in her internal affairs; Foreign Minister suggested he put this statement, along with any suggestions in writing and submit it to his government for approval, and that any such communication, from German government would be carefully examined and a reply made; believes nothing will come of conversation; von Papen merely trying to bolster his diminishing prestige in Berlin; most heads of missions remaining in Vienna throughout summer, including von Papen.

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0517-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 July 05   [Box 5 F32]

Typed Letter Copy, 5 p.

Austrian Government has decided to prolong term of President [Wilhelm] Miklas beyond October when, according to constitution, a President should be elected; in view of difficulties between London and Paris and London and Rome, Government wishes to leave its hands free in struggle to maintain Austrian independence; law enacted by which part of Hapsburg property returned, and which permits Hapsburgs to return to Austria to live as private citizens; young Prince Louis Windesgraetz [Windisch-Graetz], von Starhemberg's lieutenant, was sent to Belgium to inform Otto that restoration in near future not possible and if he did return to throne eventually it would have to be as constitutional monarch on English plan; Otto reported to have liberal views and will be agreeable to terms; concern felt in some circles because of alleged negotiations between [Franz] von Papen and Foreign Minister [Egon Berger-Waldenegg]; von Papen called on Foreign Minister and made a number of propositions for improving Austro-German relations, including definite German recognition of Austrian independence; Foreign Minister told him to put propositions in writing and get the approval of his government and Austria would be happy to consider them; von Papen agreed to do so, but has not been back; obvious he was acting on his own initiative and could not get his government's approval; since developments in Germany always have repercussions in Austria, wrote at length to Ambassador [William E.] Dodd with reference to economic aspects of German situation and to Herbert Feis; copies of both letters enclosed; Ambassador [Breckinridge] Long in Austria for rest; he reports little doubt that there will be armed conflict in Abyssinia, and Mussolini determined to acquire complete sovereignty over the country.

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Items 0518-0538   [Box 5 F33]

0518-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 July 08   [Box 5 F33]

Typed Letter Copy, 16 p.

European situation developing unfavorably; Abyssinian question top news at present, but major issue in Europe still hinges on Austria; Vienna capital of only a small country but is a crossroads where one meets people from all countries of Europe and is able to get good picture of what is happening all around; Poland's internal situation better than formerly, but in foreign policy she is still straddling fence; Czechoslovakian internal situation not happy and economic problems causing increasing concern; she has had to revalue her currency twice; Czech political problems complicated by recent election of pro-German Henlein group; Czechoslovakia can be depended on to stick closely to Little Entente and to France; in Hungary situation remains stable with [Julius] Goemboes government firmly entrenched, but unnatural cooperation between [Stefan] Bethlen and [Tibor] Eckhardt a factor to be considered; Hungarian government pro-German, but distrustful of Hitler regime; Hungary sympathetic with Austria, but avoids definite commitments; revision for the present pushed into background,but remains principal objective in Hungarian foreign policy; was in Budapest recently and talked with [Hans Georg] von Mackensen, German Minister there; von Mackensen not a Nazi, but very much an instrument of the Nazi regime; developments in Yugoslavia in right direction; new Cabinet opened way to conciliation within country and relations with Italy better; Turkey taking advantage of confusion in general European situation to use Straits for bargaining purposes; internal political and financial situation of France cause for concern; in case of German aggression, doubtful that France would be able to move; despite Italy's financial weakness, Mussolini determined to carry through Abyssinian venture even if it means war; French-Italian military cooperation in case of German aggression against Austria can be expected; similar naval cooperation in Mediterranean only a threat, but something England could not face with complacency; England, holding key to European situation, following policy clear to no one; that she should act slowly understandable, considering her great responsibilities and strong public opinion at home that England should not intervene in Continental affairs; strange that Abyssinia should arouse widespread indignation in England when Austria's plight should be of more concern; Holland, Switzerland, and Scandinavian countries want to stay neutral in case of war; they do not like present German regime, but try to keep on friendly terms with it; German policy, both internal and external remains unchanged since Nazis came into power; Party leaders continue to pursue radical political, social, and economic aims; a few radical Nazis removed from government because they fell out of favor, and a few non-Party members, such as [Hjalmar] Schacht and [Konstantin von] Neurath, have been kept on because not enough capable Party men to fill all high places; no country wants war, not even Germany at the moment, and barring accident war may be averted for a few months, or even a few years, but if present German regime stays in power, and if other European countries don't face this fact and take concerted action to see that a reasonable government is established in Germany, war is inevitable.

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0519-00

Dunn, James Clement, Washington. To G.S. Messersmith, Vienna., 1935 July 09   [Box 5 F33]

Typed Letter Signed, 2 p.

Hopes Messersmith will continue to write in manner he wrote to [Jay Pierrepont] Moffat; sidelights in letters helpful in forming picture of what is going on; occupied recently with developments in Ethiopia and with visit from Prime Minister [J. A.] Lyons of Australia; interested in Messersmith's sketch of [Franz] von Papen; von Papen fools only himself in assuming position to which he is not entitled; met him at Chancellor's reception in Vienna; sorry visit to Vienna coincided with Messersmith's leave in U.S.

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0520-00

Messersmith, G.S., Vienna. Despatch No. 484 to Secretary of State [Cordell Hull], Washington., 1935 July 10   [Box 5 F33]

Typed Document Copy, 6 p.

Called on Foreign Minister [Berger-Waldenegg] yesterday; he confirmed substance of conversation with [Franz] von Papen; after learning von Papen had left for Berlin, he called press conference and made firm statement that there could be no improvement in German-Austrian relations unless Hitler made an unequivocal statement that he intended to respect Austria's independence and integrity; had no faith in von Papen to report his attitude correctly to Hitler; sees little hope of Hitler making such statement; von Papen has returned from Berlin and has made no attempt to see him; presumably he has nothing to report; inquired of Foreign Minister concerning law restoring Hapsburg property; he replied that restoration of the property was a simple act of justice and had no connection with the question of restoration of the monarchy; nor was there any indication that the royal family would leave Belgium and take up residence in Austria.

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0521-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1935 July 11   [Box 5 F33]

Typed Letter Copy, 5 p.

Enclosures not with copy. London Times, showing Times is swinging back to former policy; [Norman] Ebbutt again reporting from Germany without soft-pedaling the news; new campaign in Germany against church, Jews, professors, and student organizations as shown in recent speeches of Joseph Goebbels, Wilhelm Frick, Alfred Rosenberg, and Julius Streicher, all fully reported in Times by Ebbutt; Ebbutt reports with equal authority on economic and financial situation in Germany; Austrian Legion reuniformed and brought back to Bavaria; anti-Austrian articles in German press again more violent; encloses 5 clippings.

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0522-00

Messersmith, G.S., Vienna. Despatch No. 487 to Secretary of State [Cordell Hull], Washington., 1935 July 11   [Box 5 F33]

Typed Document Copy, 7 p.

Much speculation in press about restoration of Hapsburg monarchy; many Austrians favor idea but government leaders believe time not right; they do not wish to offend neighboring countries, who might support them in their struggle to maintain independence and to whom restoration would be distasteful; some favor beginning with a regency before proceeding to full restoration; Otto in accord; need for economic cooperation with Hungary leads to speculation concerning partial restoration of old Empire.

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0523-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1935 July 13   [Box 5 F33]

Typed Letter Copy, 2 p.

Enclosures not with copy. Encloses 5 examples of illegal propaganda material circulated in Austria, with brief comments on each.

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0524-00

Messersmith, G.S., Vienna. Despatch No. 493 to Secretary of State [Cordell Hull], Washington., 1935 July 13   [Box 5 F33]

Typed Document Copy, 4 p.

German Minister [Franz] von Papen returned from Berlin and has called on Foreign Minister [Berger-Waldenegg]; doubts anything came of conversation; Foreign Minister left following day for two weeks holiday; informed by colleague that Foreign Minister had stated several days ago that no matter what propositions Germany might make, Austria would have to consult France, Italy, and Hungary before considering them; Austria would also like to wait conclusion of Danubian pact before committing herself in any arrangement with Germany.

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0525-00

1935 July 13   [Box 5 F33]

Typed Document Copy, 4 p.

Enclosed with No. 526. Translation of radio broadcast announcing death of Mrs. [Herma] Schuschnigg in automobile accident.

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0526-00

Messersmith, G.S., Vienna. Despatch No. 497 to Secretary of State [Cordell Hull], Washington., 1935 July 18   [Box 5 F33]

Typed Document Copy, 6 p.

Enclosure: No. 525. Reports death of Mrs. [Herma] Schuschnigg in automobile accident; believes it will not affect Chancellor in continued performance of duty.

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0527-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1935 July 18   [Box 5 F33]

Typed Letter Signed, 2 p.

Interested in Messersmith's accounts of [Franz] von Papen's activities; curious fellow; knew him in old days; distressed to hear of tragic accident of Chancellor Schuschnigg and his wife; press first reported [Ernst] von Starhemberg would take Chancellor's place, but now appears Schuschnigg will continue.

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0528-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 July 19   [Box 5 F33]

Typed Letter Copy, 5 p.

Automobile accident which took Frau [Herma] Schuschnigg's life but from which Chancellor escaped uninjured thought possibly result of foul play, but no evidence car had been tampered with, and no question of fidelity of chauffer, who was seriously injured; attended informal dinner given by Argentine Chargé two days before accident; Chancellor and wife present, happy and relaxed, and looking forward to holiday; some speculation Chancellor might resign due to severe shock, but he is not a man to let personal grief interfere with performance of duty; hopes U.S. government sent message of sympathy; [Sir Samuel] Hoare's speech in House of Commons and his statements concerning Austria removed any uncertainty about England's support and cleared way for Danubian pacts; doubts date for Rome conference can be set however until Abyssinian question is settled.

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0529-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1935 July 22   [Box 5 F33]

Typed Letter Copy, 8 p.

Enclosing article from N.Y. Times of June 22 on brutality in Austrian jails; article, by [George E. R.] Gedye, gives completely wrong impression; Gedye, an Englishman and a Socialist, on the whole a good correspondent, but inclined to let political convictions color his reports; Gedye recently thrown out of Yugoslavia because of unfair reports on last election there, and is fast becoming persona non grata in Austria; spoke to [Edwin Leland] James, Managing Editor of Times, about Gedye while in U.S. on leave; James said he would ask [Frederick T.] Birchall, principal N.Y. Times correspondent in Europe, to talk to Gedye; personal relations with Gedye pleasant, but he will find himself in trouble if he continues his unobjective reporting.

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0530-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 July 22   [Box 5 F33]

Typed Letter Copy, 14 p.

Effect of [Sir Samuel] Hoare's speech in House of Commons instantaneous in calming fears, particularly in Southeastern Europe; speech opens way hopefully to peaceful settlement of Abyssinian question; Danubian pacts may then be concluded; pacts will not make good neighbor of Germany as long as present regime is in power, but may help safeguard Austrian independence; reaction to Anglo-German Naval pact in England as well as in rest of Europe has shown Germany that expected relief in way of credits and trade privileges not to be realized; unsuccessful externally, Nazis now trying to strengthen internal position through new reign of terror; Germany needs favorable opinion abroad, and to this end, some of higher leaders have tried to use their influence to steer more conservative course, but without effect; more radical elements getting upper hand; university professors, Christian and Jew, let out in large numbers, renewed terroristic campaign in university and intellectual circles organized; Richard Strauss, head of Reich Music Chamber, forced out because Stefan Zweig wrote libretto of his new opera; new offensive against Church; [Hans] Kerrls, Minister without Portfolio, to take charge of Church question, and Count [Wolf von] Helldorf appointed Police President of Berlin; Kerrls a fanatic, narrow and prejudiced; Helldorf radical, relentless, unscrupulous, extremely anti-Semitic; certain German Jews, in spite of situation, lend themselves as instruments of the Government; Jakob Goldschmidt, capable banker, suffering under loss of position, now wandering about Europe and reduced to becoming agent of Nazis; Max Warburg, of Hamburg, connected with efforts to get credits, etc. for Germany from U.S.; probably trying to save what he can of Warburg interests; Dr. [Karl] Goerdeler has resigned as price commissioner in Germany; his task had become impossible; increasing scarcity of raw materials and difficulty in financing industrial operations have cut down on days or work in various areas; many workers employed only 14 to 16 days a month, and have real struggle for existence; workers who complain are arrested for "Communist activities"; British veterans visiting in Berlin witnessed anti-Semitic excesses; U.S., as well as other countries, must face facts; war in Europe, even if U.S. managed to stay out of it, would create problems for her through her relations with other nations both warring and neutral; it would be mistake now for U.S. to take stand on matter of neutrality; should not take measures or make declarations which would tie hands if emergency arises; Catholic clergy in Germany faced by struggle for existence; British veterans visiting Germany agreed to place wreath on what they understood was veteran's monument in Munich; on arriving in Munich they discovered the monument was in memory of those who died in the abortive Hitler putsch of 1923, and they refused to go through with the ceremony; those in charge of ceremony went on with it and placed wreath "in the name of the British Veterans."

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0531-00

Messersmith, G.S., Vienna. Despatch No. 503 to Secretary of State [Cordell Hull], Washington., 1935 July 25   [Box 5 F33]

Typed Document Copy, 5 p.

[Franz] von Papen left with Austrian Foreign Minister Berger-Waldenegg memorandum covering proposals for improvement of Austro-German relations; memorandum unsigned and no indication whether it represented von Papen's own views or whether it had been submitted to his government for approval; proposals cover suggestions for restraining press comment in German and Austrian press and freer exchange of newspapers, freer tourist authorization, and a very vague proposal for a ten-year non-agression pact; proposals may lead to further conversations, but will likely come to nothing; Austria's main hope now is in Danubian pacts.

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0532-00

Dunn, James Clement, Washington. To G.S. Messersmith, Vienna., 1935 July 27   [Box 5 F33]

Typed Letter Signed, 2 p.

Read with interest Messersmith's letter on attitude of London Times toward German situation and activities in Germany with regard to economic situation; question how much influence Times has when it adopts purely personal viewpoint; noted when in London recently Times playing up pacifist attitude and desire of large element of British people for rapproachment with Germany; may be able to judge better after coming election to what extent this attitude represents British opinion.

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0533-00

Copy of article from Presse, July 28, entitled, The "Watch Tower Movement in South Africa"., 1935 July 28   [Box 5 F33]

Typed Document, 1 p.

Dateline Buluwayo, July 27; reports dangerous activities of Watch Tower in inciting religious fanaticism among Negroes.

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0534-00

Dodd, William E.,[Berlin]. To G.S. Messersmith, Vienna., 1935 July 31   [Box 5 F33]

Autograph Letter Signed, 3 p.

Sorry Messersmith has not been well; has been "under the weather" also, but can expect no relief from any German "cure"; Messersmith's report on Oberländer-von Steuben business excellent; had arrived at same conclusion as Messersmith; von Steuben visitors to Germany this year did harm everywhere they went; Hoffman made two speeches which affronted every American present; Embassy sent report which may have some effect in Washington; said in brief speech that propaganda one of the errors of our times; Judge [Julius W.] Mack will tell Messersmith facts about situation; Mussolini's plans seem favorably regarded in Germany; doubts Mussolini will go through with plan and risk eclipsing himself, leaving only one Napoleon I in Europe.

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0535-00

Messersmith, G.S., Vienna. Memorandum on conversation with Sir Walford Selby., 1935 July 31   [Box 5 F33]

Typed Document, 1 p.

Selby called afternoon of June 30; said he found situation in Austria reassuring and saw nothing happening in near future; Selby thought [Sir Samuel] Hoare's position on Danubian Pacts quite clear and that more definite action could be expected from him than from [Sir John] Simon; he felt nothing definite could be done about pacts until Abyssinian question is clearer; spoke of repercussions on whole situation which outbreak of hostilities in Abyssinia could have; referred to [London] Times editorial on July 26 entitled "Commemoration in Austria," which he termed unsatisfactory and indicating strong German influence; Selby convinced everything possible must be done to prevent Anschluss and German expansion to Southeast.

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0536-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 August 01   [Box 5 F33]

Typed Letter Copy, 2 p.

Little of significance to report; Austria quiet and both Chancellor and Foreign Minister away for rest; Austria full of tourists; everyone concerned over Abyssinian question; some optimism that formula will be reached in Geneva today which will give another month's breathing space; French and Italians working on drafts of proposed Danubian Pacts; England places greater value than before on pacts.

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0537-00

Messersmith, G.S., Vienna. Despatch No. 513 to Secretary of State [Cordell Hull], Washington., 1935 August 05   [Box 5 F33]

Typed Document Copy, 6 p.

Reports on progress with respect to Danubian pacts; draft pact drawn up by French government and sent to Italian government last week; Italian government sent copy to Vienna; England now showing interest; draft provides for non-interference, non-aggression, and consultation, but contains no provision for mutual assistance; Germany making every effort to block pact.

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0538-00

Messersmith, G.S., Vienna. To James [Clement] Dunn, Washington., 1935 August 06   [Box 5 F33]

Typed Letter Copy, 3 p.

Reports on difficulties of Watch Tower Bible and Tract Society; Austrian branch of Society ordered dissolved by Government; no American connected with Austrian branch; [M. C.] Harbeck, who is American, comes occasionally from Switzerland in its behalf; when Harbeck was last here, told him nothing Legation could do about dissolution order without instructions from Department; from Vienna, Harbeck when to Berlin where he was arrested for attempting to smuggle out of Germany movies belonging to Society; according to press, Watch Tower also in difficulties in South Africa where it is accused of inciting religious fanaticism among Negroes; while in Washington, talked with Chandler Anderson, Counsel for the Society in Washington, and with its Washington representative; told them frankly about activities of Society in Austria and about its seditious nature; with Harbeck's knowledge or perhaps his instruction Society continued to circulate inflammatory pamphlets directed against Catholics and against Government after being ordered to desist; believes Society will be of increasing concern to Department, for Society will continue to call upon Department for support abroad; recommends Department make no further representations in Society's behalf, but will be guided by Department's instructions.

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Items 0539-0554   [Box 5 F34]

0539-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 August 06   [Box 5 F34]

Typed Letter Copy, 12 p.

Went to Zell am See for opening of new highway; Austria has built longest, highest, and best highway over Alps, in times of economic stress and out of her own resources; many of higher Government officials away, but Chiefs of Missions stick around; nothing points toward immediate catastrophe, but whole European situation causes grave concern; immediate interest centers on Abyssinian question and results of League meeting not encouraging; it is recognized that Italy needs room for expansion, but England cannot tolerate roughshod way Mussolini proceeds, and must protect her interests in Mediterranean and Near East; economic pressures which France and England may bring to bear plus unpopularity of Abyssinian war in Italy may be deciding factors; Paris and Rome preparing ground for Danubian Pacts, so that action may be taken by Little Entente states at meeting scheduled Aug. 29; Germans doing all possible to sabotage pacts, which they see as obstacle to Southeastern expansion; British showing interest in rapid negotiation of pacts; many people cynical about value of pacts, but they are the only means available outside of war or economic boycott for Europe to get out of tense situation; if Nazi regime maintains itself sufficiently long, war is inevitable; the hopes that present regime may gradually become more reasonable are illusory; no compromise possible for Nazis; Europe has wisely refrained from armed intervention to bring about change of government in Germany; definite economic boycott no solution; present regime, by its own acts, has brought about increasing economic isolation; it is recognized that Germany is a power with which arrangements must be made, but that arrangements with present Government offer no stability or security; majority of German people sound and can be good neighbor if they have good government; Reichswehr only instrument within Germany, outside of economic disaster, which can bring about change of government; Reichswehr not sympathetic to Nazi economic and social program, but tolerates regime because task of rearming not yet complete; opposition within Germany to pressures against Church, Jews, and exercise of independent thought, but not sufficient to bring about change of government; economic pressure may bring about change; empty stomachs could demand change; when a reasonable government is installed in Germany certain concessions must be made or the same old sores will remain; Germany, like Italy, needs room for expanding population; colonial concessions may be answer; Germans obliged by force or conscience to leave Germany may take constructive action which will have wide appeal within Germany and serve as nucleus for reaction there; such men as [Heinrich] Brüning and [Gottfried R.] Treviranus fitted for task.

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0540-00

Dunn, James Clement, Washington. To G.S. Messersmith, Vienna., 1935 August 07   [Box 5 F34]

Typed Letter Signed, 1 p.

Thanks Messersmith for sending copies of propaganda material circulated in Austria; sending copy of AFFAIRS for July 5, 1935; publication's foreign department handled by Drew Pearson; doesn't think it deserves serious consideration.

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0541-00

[Kennan, George F., Vienna]. Memorandum., 1935 August 08   [Box 5 F34]

Typed Document Copy, 3 p.

Enclosed with No. 542. Summarizes G. S. Messersmith's letter of Aug. 6 to William Phillips; in earlier period had little faith in collective security as means of combating National Socialism; might have been to advantage of U.S., England, and France to tolerate German expansion to East and allow conflict to develop which would exhaust both Germany and Russia and leave them powerless in world affairs; agrees now any projects, such as Danubian Pacts, which show a possibility of discouraging German aggression worth consideration; foolish to take cynical attitude toward treaties; even crudest dictatorships must give lip service to principles of honesty and decency and they have responsibility to public opinion if not to their own consciences; value of pacts may be modified by unresolved differences among powers negotiating them; doubts present German regime can endure for years, but not sure a reasonable one can be found to succeed it; danger in preoccupation with military menace of Germany and closing eyes to character and policies of other countries such as Italy and Russia, which are anything but worthy.

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0542-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1935 August 09   [Box 5 F34]

Typed Letter Copy, 1 p.

Enclosure: See No. 541. Wrote to [William] Phillips on Aug. 6 commenting on general European situation; asked [George F.] Kennan [Second Secretary] to read letter before sending it; Kennan made interesting comments which he put into enclosed memorandum; calls attention to editorial in London Times of Aug. 7 entitled "Two Dictatorships".

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0543-00

Messersmith, G.S., Vienna. Despatch No. 517 to Secretary of State [Cordell Hull], Washington., 1935 August 10   [Box 5 F34]

Typed Document Copy, 7 p.

Clifton M. Utley, Director of Chicago Council on Foreign Relations called at Legation on Aug. 6 and reported meeting which has been arranged between [Heinrich] Himmler, Chief of German Secret Police, Col. [Thomas C.] Moore, a member of the British Parliament, and himself; Moore reputed to be head of a pro-German bloc in Parliament; reason for meeting uncertain; Utley appears intelligent and understanding of situation in Germany; believes he will not allow himself to become tool for German propaganda.

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0544-00

Memorandum of conversation between G.S. Messersmith and General [Alfred J.] Jansa [von Tannenau]., 1935 August 10   [Box 5 F34]

Typed Document Copy, 2 p.

Enclosed with No. 545. Jansa, formerly military attaché at Austrian legation in Berlin now brought back to head General Staff of Austrian Army; his opinion is that present regime in Germany has to maintain its position by force; spoke of excesses of the Nazis against Church and Jews; struggle within Party between radical and conservative elements; economic problems may bring about downfall of regime.

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0545-00

Messersmith, G.S., Vienna. Despatch No. 518 to Secretary of State [Cordell Hull], Washington., 1935 August 12   [Box 5 F34]

Typed Document Copy, 2 p.

Enclosure: See No. 544. Transmitting memorandum on conversation with General [Alfred J.] Jansa [von Tannenau], head of the General Staff of the Austrian army and former military attaché at the Austrian legation in Berlin.

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0546-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 August 12   [Box 5 F34]

Typed Letter Copy, 13 p.

Radical program of Nazis intensified during past month; more radical element of Party has upper hand; Hitler very little in Berlin; stays away from storm center while it is at its worst; [Wilhelm] Frick in recent speech demanded that Catholic and Protestant Churches incorporate themselves absolutely into National Socialist State; leaders making violent speeches; S.A. and S.S. again active; will of the Party is the only law; situation of Jews daily more critical; Jews excluded from public office, admission to professions stopped, and other means of earning a living greatly diminished; citizenship law which denies Jew the usual rights of a citizen not yet in effect, but likely to be soon; Frau Kathe Stresemann, Jewess widow of former Chancellor and Foreign Minister in very straightened circumstances; income from small trust fund greatly reduced; now pension cut to almost nothing; her case is only one out of thousands; Jews treated as outcasts in all public places; American Jewess visiting in Germany was informed by hotel keeper that he was not permitted to admit Jews; city officials took her passport and kept it twenty-four hours; may become necessary for Department to warn American Jews to avoid Germany; reports of excesses have reached outside world through good work of newspaper correspondents; because of their factual, objective reports, Nazi leaders furious, and correspondents may find themselves in difficult position; correspondent of leading Swiss newspaper already sent out; calls attention to despatch No. 517 regarding meeting to be held soon between Himmler, Col. [Thomas C.] Moore, Member of Parliament and head of pro-German bloc, and [Clifton M.] Utley, director of Chicago Council of Foreign Relations; Himmler probably trying to get out denials or "correct reports" through apparently non-German and objective sources in England and America which would contradict reports of correspondents; Department might wish to get in touch with Utley on his return; doubts Utley will lend himself to German propaganda; [Vittorio] Cerutti, Italian Ambassador to Germany, transferred to Paris; Cerutti's wife a Jewess, which may have had something to do with transfer; Bremen incident regrettable, but N.Y. police did take action against offenders; German press comment outrageous in view of attacks on American citizens in Germany, while police calmly looked on; action against Stahlhelm practically complete; General [August] von Mackensen obliged to withdraw his honorary membership; Free Masons to be abolished; much corruption within Party; higher leaders making themselves rich while workers live on starvation wages; Nazi officials ordered not to give information concerning their salaries to anyone; believes U.S. should not take part in Olympic Games in Germany; saw General [Charles E.] Sherrill at Ambassador [Dave Hennan] Morris' house in Brussels; gathered impression Sherrill and his committee, whatever their private opinion, would accept assurances of [Theodor] von Lewald, head of German Committee, that there would be no discrimination against Jews in the Games; von Lewald used as facade because of American confidence in him, but he could not keep promises even if he wanted to; Criminal Congress to be held in Germany as planned; ironic that international conference of this kind should be held in Berlin.

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0547-00

Dunn, James Clement, Washington. To G.S. Messersmith, Vienna., 1935 August 13   [Box 5 F34]

Typed Letter Signed, 2 p.

Messersmith's letter of July 22 on matter of [George E. R.] Gedye's reporting to New York Times very interesting; was surprised at alleged brutality in Austrian jails as reported by Gedye and at his description of Machine Guns pointed at City Hall in Vienna.

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0548-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1935 August 14   [Box 5 F34]

Typed Letter Signed, 2 p.

Messersmith's reference to repercussions felt in Austria from Italy's Abyssinian venture because of possible action on part of Germany of interest to Department; in reply to inquiry as to whether Department sent message of sympathy on death of Frau Schuschnigg, message was sent to Chancellor; signed message as Acting Secretary.

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0549-00

Memorandum of conversation between G.S. Messersmith and Foreign Minister Berger-Waldenegg, with British Minister present., 1935 August 14   [Box 5 F34]

Typed Document Copy, 2 p.

Enclosed with No. 551. Terms of Danubian pact satisfactory to Austria in that it establishes principle of non-interference and non-agression; Germany would like to make separate agreement with Austria, and is doing everything possible to sabotage pact; Austria will make no separate agreement with Germany, or even negotiate as long as there is hope for the Danubian pact.

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0550-00

Messersmith, G.S., Vienna. Despatch No. 520 to Secretary of State [Cordell Hull], Washington., 1935 August 15   [Box 5 F34]

Typed Document Copy, 11 p.

A few new developments in German-Austrian relations and in prospects for Danubian pacts; some apprehension that Italy's growing concern in Abyssinia may affect her support of Austria; increased influence of Russia in Czechoslovakia and Rumania makes idea of mutual assistance impossible of application in Danubian pacts; British interest in pacts has stimulating effect in shaping discussions; Germany still pushing for separate agreement with Austria and trying somewhat more conciliatory tactics, but no statement from authoritative source that she will respect Austria's independence; Austria maintains firm stand that she will make no separate agreement with Germany as long as there is hope for the Danubian pacts and until Hitler makes unequivocal statement that her independence will be respected.

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0551-00

Messersmith, G.S., Vienna. Despatch No. 521 to Secretary of State [Cordell Hull], Washington., 1935 August 15   [Box 5 F34]

Typed Document Copy, 4 p.

Enclosure: See No. 549. Transmitting memorandum of conversation with Foreign Minister [Berger-Waldenegg] regarding Danubian pacts.

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0552-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 August 15   [Box 5 F34]

Typed Letter Copy, 3 p.

Friend from Germany called at Legation recently; friend important in German finance and industry; not a Nazi, but has not been disturbed in his business because of his usefulness in maintaining industrial and financial structure of country; friend reported Germany now a country in which private rights no longer exist; only law is will of Nazi Party; told of woman from Fürstenwalde, wife of a leading citizen; woman had become ardent National Socialist in 1928 and helped to organize women's groups; when Party came into power in 1933 Fürstenwalde got new Burgomaster, a radical Nazi, who organized orgies in the Rathaus; when news of these excesses reached National Socialist woman, she was shocked and reported conduct of Burgomaster to National Socialist headquarters in Berlin; her action was followed by continuous persecution of herself and her family; she was insulted, threatened and spat upon, and her sons lost their jobs; city and Party officials would take no action; lawyers advised her to do nothing; is now living in Norway with relatives; many examples of such experiences.

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0553-00

Dunn, James Clement, Washington. To G.S. Messersmith, Washington., 1935 August 21   [Box 5 F34]

Typed Letter Signed, 2 p.

Has been in communication with representatives of Watch Tower Bible and Tract Society in Washington; gratified [M. C.] Harbeck released from Germany; Society running counter to present governments in Germany and Austria and Department must be careful of manner of supporting Society's contentions; sees nothing to be done in Austria, as Government has right to suppress an organization carrying on activities inimical to country's interest.

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0554-00

Dunn, James Clement, Washington, To G.S. Messersmith, Vienna., 1935 August 21   [Box 5 F34]

Typed Letter Signed, 2 p.

Was interested in memorandum by [George F.] Kennan; shows straight thinking and is suggestive of new ideas; will see that higher officers of Department see it; Department very busy lately; concerned with Ethiopian affair, preparations for Naval Conference, proposed neutrality legislation and production and control of traffic in arms and ammunition; question of neutrality complicated, but hopeful that legislation may be obtained which will fit requirements of country.

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Items 0555-0574   [Box 5 F35]

0555-00

Messersmith, G.S., Vienna. Despatch No. 528 to Secretary of State [Cordell Hull], Washington., 1935 August 22   [Box 5 F35]

Typed Document Copy, 5 p.

In conversation with Foreign Minister [Egon Berger-Waldenegg] on Aug. 21, learned Austria had received draft of Danubian pacts from Paris and had found its terms satisfactory; Minister believed countries of Little Entente would find them acceptable and hoped that the final form of the pacts would be ready early in September for the League meeting.

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0556-00

Messersmith, G.S.Vienna. To William Phillips, Washington., 1935 August 23   [Box 5 F35]

Typed Letter Copy, 5 p.

Tourist season at height and every part of Austria benefitted; Vienna full of foreigners while Austrians have gone to the country; Foreign Minister back on job, but other members of Government vacationing; Chancellor's mother died recently; work on Danubian Pacts going forward; mutual assistance provision left out; Germany still trying to sabotage pacts, but so far with no success; Germany now trying to make separate agreement with Austria merely to prevent conclusion of pacts, but if agreement were reached, Germany would keep it only so long as she pleased; nervousness felt because of tension between London and Rome, but London and Paris have made up differences; [Alfred] Kliefoth was in Berlin on way home and saw [Konstantin] and Frau von Neurath who told him that [Franz] von Papen did not have the confidence of Hitler or the German Foreign Office; Austria still hopeful that conflict in Abyssinia can be avoided; with Italy engaged elsewhere, Germany might feel the time ripe to move on Austria.

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0557-00

Messersmith, G.S., Vienna. Despatch No. 531 to Secretary of State [Cordell Hull], Washington., 1935 August 26   [Box 5 F35]

Typed Document Copy, 6 p.

Rumored that Italy preparing to abandon Austria by negotiating pact with Germany; [Franz] von Papen made hurried trip to Berlin after which he called on Foreign Minister [Egon] Berger-Waldenegg; von Papen assured Minister that German newspaper attacks on Austrian Chancellor [Kurt Schuschnigg] and Vice Chancellor [Ernst] von Starhemberg would cease; he deplored Austria's decision to send no athletes to participate in Olympic games and hoped order would be rescinded; von Papen also hoped Austrian press would give less space to economic and financial situation in Germany; Foreign Minister made no definite reply; Austria still being pressured for separate agreement with Germany; important to conclude Danubian pacts speedily or Austria may be forced to yield to Germany's pressure.

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0558-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 August 27   [Box 5 F35]

Typed Letter Copy, 11 p.

Monarchists, encouraged by recent attention, strengthening their organization, but they have no power; when or if restoration comes, it will be by Government action, and Government feels restoration would be mistake at present; falling prestige of Italy because of Abyssinian question may affect position of Prince [Ernst von] Starhemberg, who has close ties with Italy; Major [Emil] Fey, leader of Vienna Heimwehr, strengthened; consolidation of Heimwehr and other private armies into one military organization making little progress; rumored conversations in progress between Rome and Berlin, but no official confirmation; [Franz] von Papen returned from Berlin with nothing but vague propositions to offer Austrian Foreign Office; Austria still opposed to idea of separate agreement with Germany, but further delays in conclusion of Danubian Pacts may force her to negotiate with Germany; Italian Government announced Rome agreement of January 7 between Italy and France regarding Austria remains in effect; news from Germany increases concern; flagrant incidents so numerous no use in reporting separate ones; [Hjalmar] Schacht's recent speech protesting the excesses of no significance for excesses are carried on with knowledge and approval of Government; Schacht making bid for foreign support; speech not carried on German radio and reported on very briefly by German press; list of sentences passed before so-called People's Court in Germany shows there is no safety for high or low and decisions of court such as to make term "justice" a misnomer; [Julius] Streicher made speech in Berlin middle of August which was too much even for some Nazi stomachs; arrest in Czechoslovakia recently of General [Rudolf] Krauss and author [Joseph Franz] Leppa seems connected with contact between Henlein Party and Nazis in Germany; much interest in Olympic Games; Germany considered it a great victory last year when World Baptist Congress was held in Berlin in spite of German persecution of Churches; a great victory when World Criminal Congress was held there recently with distinguished lawyers and jurists from all over the world, even though Germany now a state in which there is no justice; but being host to Olympic Games is greatest victory yet; National Socialism is a movement of the young, chiefly under 30, and to have sportsmen from all over the world gather in Germany, in spite of discriminations and barbarities of the regime, is gratifying to the Party; psychological importance should not be underestimated, and political consequences outweigh athletic importance; although National committees in almost every country are aware that Germany is already violating promises that there will be no discrimination, they are encouraging their national units to participate in Berlin; only Austria has indicated she will not participate; still hopeful U.S. committee will change its attitude; General [Walther von] Reichenau transferred from important post in Berlin to one as division commander in South Germany; Reichenau one of few army officers to join Nazi Party; he had favor of Hitler but was ignored by Army colleagues, who "kicked him upstairs" by a promotion in grade and relegated him to post outside Berlin; indicative of strength of Reichswehr.

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0559-00

Translation of article on German Army which appeared in Vienna Reichspost., 1935 August 27   [Box 5 F35]

Typed Document Copy, 3 p.

Enclosed with No. 567. Reichswehr (German Army) leaders trying to keep Army separate from Nazi Party; so far successful; Army stands behind government, but opposes some of its radical measures.

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0560-00

Translation of article from Wiener Zeitung., 1935 August 28   [Box 5 F35]

Typed Document Copy, 1 p.

Enclosed with No. 561. Austrian Chargé d'Affaires in Berlin recently protested the untruthful and libellous articles about Austria and members of Austrian government which have appeared in German press; German Minister in Vienna raised similar complaints; resultant conversation between German Minister [Franz von Papen] and Foreign Minister [Egon Berger-Waldenegg] led to agreement that such attacks in both Austrian and German press should cease.

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0561-00

Messersmith, G.S., Vienna. Despatch No. 536 to Secretary of State [Cordell Hull], Washington., 1935 August 30   [Box 5 F35]

Typed Document Copy, 8 p.

Enclosure: See No. 560. Austrian-German relations remain unchanged; at [Franz] von Papen's request both Austrian and German press using more restraint; French and British Ministers believe this restraint not significant; Austrian delegation to League meeting in Geneva leaves Sept. 4 though actual meeting doesn't begin until Sept. 9; no doubt that delegates wish to confer with French, Italian, and British representatives before meeting; Austria still has support of Italy, France, and England, but Italy's Abyssinian venture may change situation; article in Italian newspaper intimates there will be delays in concluding Danubian Pact, but reiterates Italy's support of Austria; support of the Pact by Little Entente not as certain as it was a short time ago, particularly in Yugoslavia, which though not pro-German, is even less pro-France or pro-Italy; recent meeting of German high military and Party officials with Hitler; meeting believed to be for discussing possibility of action under certain circumstances; Austria's fate hangs in balance.

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0562-00

Memorandum., 1935 September 04   [Box 5 F35]

Typed Document, 1 p.

Paragraph from President [Roosevelt's] statement on signing of Neutrality Resolution passed by Congress; policy of U.S. Government to avoid being drawn into wars between other nations, but situations may arise which call for flexibility of action.

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0563-00

Messersmith, G.S., Vienna. To Raymond H. Geist, Berlin., 1935 September 05   [Box 5 F35]

Typed Letter Copy, 2 p.

Discussed with well informed Austrian recently new German school books which he had examined; much revision, especially in fields of history and geography, to educate German youth in National Socialist doctrine; might be interesting to send some of these books to State Department.

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0564-00

Messersmith, G.S., Vienna. Despatch No. 540 to Secretary of State [Cordell Hull], Washington., 1935 September 07   [Box 5 F35]

Typed Document Copy, 7 p.

Talked with Foreign Minister just before he left for Geneva on Sept. 4; Minister satisfied with results of Little Entente Conference, but somewhat disturbed that question of equality was brought up; he felt that if the Danubian Pact was signed, equality was implied; he did not believe either that restoration or nonrestoration of Hapsburg Monarchy should be made condition of signing Pact; progress with Pact depends on developments in Abyssinian question; after several days of no German news in Austrian papers, press now reporting German situation fully, but correctly and objectively.

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0565-00

Messersmith, G.S., Vienna. Despatch No. 541 to Secretary of State [Cordell Hull], Washington., 1935 September 07   [Box 5 F35]

Typed Document Copy, 5 p.

Maria-Theresa Thaler, or dollar, used throughout Northwest Africa, has always been minted in Vienna; at present concession is held by English company, which supplies silver and receives portion of profit; Italy now wants concession and Austria will probably let her have it.

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0566-00

Messersmith, G.S., Vienna. Despatch No. 543 to Secretary of State [Cordell Hull], Washington., 1935 September 09   [Box 5 F35]

Typed Document Copy, 2 p.

Enclosure: See No. 568. Transmitting memorandum reporting conversations with responsible persons on certain aspects of situation in Germany.

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0567-00

Messersmith, G.S., Vienna. Despatch No. 544 to Secretary of State [Cordell Hull], Washington., 1935 September 09   [Box 5 F35]

Typed Document Copy, 2 p.

Enclosure: See No. 559. Transmitting translation of article which appeared in the Vienna Reichspost on the position of the German army in present day Germany.

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0568-00

Memorandum of conversation with a leading German industrialist., [1935 September 09]   [Box 5 F35]

Typed Document Copy, 3 p.

Enclosed with No. 566. G. S. Messersmith talked with German friend, [Victor Ridder], a leading industrialist and not a National Socialist, and reports on his comments; two pillars of German state are Party and Army, each needing the other; Party holds purse strings; Army will stick to Party so long as purse is open to increase military strength; economic collapse almost certain; prices of necessities have increased enormously; meat scarce; no exchange available to import needed feed stuff for livestock; only available exchange is for industrial program and Army program; priests and nuns being prosecuted for illegal transfer of money from country; courts wish to make it appear they, like the Jews,are responsible for scarcity of exchange; employment has increased somewhat but at the expense of business; employers forced to take on workers not needed, so that wages are lower; many National Socialists, formerly ardent, now disillusioned.

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0569-00

Translation of speech by Foreign Minister [Egon] Berger-Waldenegg before Assembly of League of Nations (Reported in Wiener Zeitung, Sept. 12.), 1935 September 11   [Box 5 F35]

Typed Document Copy, 2 p.

Enclosed with No. 575. Reminds Assembly Austria has been member since 1920; Austria willing to postpone contemplated measures [restoration of Hapsburg Monarchy] in order to preserve principle of collective cooperation; cooperation not possible when member states do not have equality; pleads equality in order to protect Austria's security.

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0570-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 September 12   [Box 5 F35]

Typed Letter Copy, 11 p.

Foreign Minister went to Geneva Sept. 4 for conversations with [Samuel] Hoare, [Pierre] Laval, [Pompeo] Aloisi, [Eduard] Benes, and [Koloman de] Kanya; if conversations satisfactory, Austria will continue to withstand German pressure for separate agreement; Austria has accepted Italian support, but much opposition in country to Italian influence; Austria prefers to depend for support on France and England, realizing such support more dependable and effective; hopeful that degree of cooperation may be retained between London, Paris, and Rome, but lacking this Austria prepared to continue present course, even in face of German-Italian rapproachment; King [Vittorio] Emanuele and General Staff of Italian Army, even General [Italo] Balbo, opposed to Mussolini's program, as are most thinking people of Italian population; England sees Italian aggression in Abyssinia as threat to her African colonies; France in difficult position; if she sides with Italy, League is gone and Little Entente falls to pieces; before making decision, France must have adequate assurances from England; England now seems prepared to give these; if Italy forces issue and England and France come to full understanding, England and France will have support of practically every other country in Europe except Germany; German situation worse; prices up, and wages remain stationary or decrease; Jewish and church persecution accentuated; regime maintains itself by terror and through Reichswehr; Reichswehr will continue to support regime as long as it can keep armament program going; Germany watching external developments with satisfaction; feels they are working in her favor; [Franz] von Papen very active; goes about the country calling on governors of various provinces, whether invited or not, trying to sow discontent and uncertainty; Austrian Nazi Party inactive but German money used to suborn officials into spreading discontent in commercial circles; joint communiqué issued by German and Austrian Government that misrepresentation of events [by press] in either country not desirable; German papers distorted communiqué; Austrian papers interpreted it to mean they were to publish no German news; this could have dangerous effects, and Government informed press that they might publish German news if they were sure of its accuracy; rapidly changing situation in Europe should indicate to Americans how dangerous it is to tie hands with neutrality statutes.

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0571-00

Hengstler, Herbert C., Washington. To G.S. Messersmith, Vienna., 1935 September 13   [Box 5 F35]

Typed Letter Signed, 2 p.

Has no portrait of President Roosevelt on hand suitable for framing but will try to obtain one for transmission to Messersmith.

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0572-00

Translation of article in Correspondence Politique (official Austrian government publication)., 1935 September 13   [Box 5 F35]

Typed Document Copy, 2 p.

Enclosed with No. 575. Austria one of the first of the former enemies of Allied powers to be admitted to League of Nations and has proved her loyalty and willingness to cooperate; Austria recognizes that League helped her achieve financial reconstruction, but feels she now must have complete equality in order to provide security; will not believe that the powers are more concerned about the independence and welfare of a distant country [Abyssinia] than they are about that of a member state, one of the oldest countries in the heart of Europe.

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0573-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1935 September 13   [Box 5 F35]

Typed Letter Copy, 10 p.

Newspaper correspondents stationed in Vienna cover most of Southeastern Europe and they have been little in Austria during past month; good indication that news from within Austria not so important now; [M. W.] Fodor, former correspondent of N.Y. Evening Post, a Hungarian, one of best European correspondents, now without American connection; a U.S. paper would do well to employ him; glad to have Department's agreement that Legation can do nothing to help Watch Tower Society; if Society attacks Catholic Church and indirectly Austrian Government, it cannot expect U.S. to help it out of its difficulties; Koerber, Washington representative of Society, coming to Berlin and Vienna; will see that he has access to authorities, but will explain that Legation can do nothing further; regrets necessity for neutrality legislation; resolution in form adopted presents no great dangers, but hopes Congress will not further tie hands of President and Department; if Foreign Minister gets assurances for which he went to Geneva, Austrian government can withstand shock of further delay in Danubian pacts and falling away of Italian support; Italian colleague in Vienna has no information to give; British and French colleagues very open and frank and they are confident their governments will cooperate for maintenance of Austrian independence; German friend who knows financial situation reported recently [Hjalmar] Schacht again trying to get credits from England but without success; Schacht offered to put up tobacco monopoly as guarantee for loan, but offer met cool reception; Germany desperately needs American cotton, but U.S. should refrain from doing anything to help present regime; serious gasoline shortage; German factory equipment wearing out and no money for replacement; received from Embassy in Berlin translation of article in Voelkischer Beobachter attacking Chancellor [Kurt] Schuschnigg and [Ernst von] Starhemberg; typical of mendacity of German press; personal attack on Starhemberg totally unjustified; [Julius] Streicher recently made member "Akademic für Deutsches Recht" at specific desire of Hitler; separate schools established for Jews; Jewish newspapers cannot be sold publicly; law placing Jews in secondary category and depriving them of rights of citizens to be proclaimed at Nürmberg Party meeting this year; read with interest N.Y. Times editorial on [Kurt von] Tippelskirch, German Consul General in Boston; knew von Tippelskirch in Berlin as objectionable person and he deserved rebuke; activities of German consuls in U.S. should be watched; rumored that [Anton] Rintelen, serving long sentence for his connection with Dollfuss murder, to be released; according to government sources, no truth to rumor.

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0574-00

Translation of editorial from Neues Wiener Tagblatt., 1935 September 19   [Box 5 F35]

Typed Document Copy, 2 p.

Enclosed with No. 577. If England had frankly stated earlier what her attitude would be concerning Italian involvement in Ethiopia, Mussolini would have "put on the brakes," and the war might have been averted.

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Items 0575-0590   [Box 5 F36]

0575-00

Messersmith, G.S., Vienna. Despatch No. 552 to Secretary of State [Cordell Hull], Washington., 1935 September 19   [Box 5 F35]

Typed Document Copy, 5 p.

Enclosures: See Nos. 569 & 572. Reports on work of Foreign Minister [Egon Berger-Waldenegg] at League of Nations meeting in Geneva; he sounded out French and British statement on extent to which they would go in guaranteeing Austrian independence in case Italy, through her absorption in Ethiopia, became too weak a reed to lean on; he said Austria would postpone consideration of restoration but urged equality of rights for Austria in matter of armaments and a seat for Austria on League Council.

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0576-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 September 20   [Box 5 F35]

Typed Letter Copy, 11 p.

Position of Austrian government delicate because of situation between London and Rome; controlled Austrian press slowly changing tone from pro-Italian to pro-English; Austrian people have never approved Italian influence in their country, but Government in real dilemma; Italy has supported Austria in the past when France and England were not prepared to and Austrian Government feels obligation, but no faith in Italy's ability to help now in case of German aggression; Foreign Minister pessimistic about League's ability to settle Abyssinian question and sceptical about application of sanctions against Italy; intimated Austria might be obliged to leave League if Italy did; when it comes to test, Austria will probably stick with League if she gets adequate assurances from England and France as to action in case of German attack; Foreign Minister vague concerning Austrian negotiations with Germany; [Franz] von Papen not in Austria now, but he has had busy summer, and done a lot of mischief; election of new president, which according to constitution should be Oct. 1, will be delayed, and President [Wilhelm] Miklas' term prolonged; Government does not wish to disturb status quo internally at present; also, probably wishes to keep way open for establishment of regency; Foreign Minister returns on Sept. 23 or 24 to Geneva, where he will see [Pierre] Laval and hopes to see [Samuel] Hoare; if he can get from them the assurances he wants, Austria can withstand shock of break with Italy; Laval may have to leave government before thoroughgoing Anglo-French cooperation can be arrived at; his arrangements with Mussolini were so far reaching that as long as he is head of French Government, France cannot desert Italy and enter into full agreement with England; labor and left movements in England and France which are bringing about rapprochement between the two countries; had conversation recently with powerful leader of British labor; he reported labor behind government and prepared to follow it into war, if necessary, to maintain British prestige and bring back democratic institutions on Continent; Mussolini has not engaged Italian prestige but if he is permitted to satisfy his full ambitions in Abyssinia, British prestige will have suffered defeat, and Mussolini will become permanent threat; in meantime Austria follows policy of watchful waiting.

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0577-00

Messersmith, G.S., Vienna. Despatch No. 553 to Secretary of State [Cordell Hull], Washington., 1935 September 20   [Box 5 F36]

Typed Document Copy, 3 p.

Enclosure: See No. 574. Transmitting translation of editorial which appeared in Neues Wiener Tagblatt on Sept. 19; believes editorial sums up Austrian attitude toward Italian-Ethiopian dispute; Austria must support her ally, Italy, in spite of English opposition.

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0578-00

Messersmith, G.S., Vienna. Despatch No. 554 to Secretary of State [Cordell Hull], Washington., 1935 September 20   [Box 5 F36]

Typed Document Copy, 12 p.

Austrian situation unchanged and it's attitude one of watchful waiting; Italian influence not popular in Austria, but Austria cannot afford to alienate Italy until she is assured of Anglo-French support; if Italy is forced to leave League of Nations because of aggression in Abyssinia she will expect Austria to follow suit; in face of closer alliance between France and England, Germany not ready to move against Austria, so Austria can afford to wait before making decision.

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0579-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1935 September 21   [Box 5 F36]

Typed Letter Signed, 2 p.

Incident mentioned in letter of Aug. 15 concerning citizen of Furstenwalde dramatic and enlightening; anxiously awaiting European crisis; in spite of pessimistic reports from Europe, way out of impasse must be found; war between England and Italy unthinkable.

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0580-00

Messersmith, G.S., Vienna. Memorandum of Conversation with Foreign Minister of Austria [Egon] Berger-Waldenegg., 1935 September 24   [Box 5 F36]

Typed Document Copy, 3 p.

Enclosed with No. 583. Had half-hour conversation with Foreign Minister following luncheon on Sept. 23; Minister leaving that evening for Geneva; had heard that Hungarian Premier [Julius] Goemboes was going to Berlin to a shooting party on Goering's invitation; telephoned Hungarian Foreign minister to verify; Minister didn't believe conflict in Abyssinia could now be avoided; Mussolini had gone too far to back down; Minister worried about Austrian commitments to Italy; remarked to Minister that Austria's main hope was in French-English accord; Minister agreed, but said it would have been better if England had acted sooner; Minister spoke of worsening conditions in Germany, of the Jewish laws which he called "the height of folly," and the chances of Germany taking action if hostilities broke out; von Papen, he said, was "utterly irresponsible" and was always counting "on the other man's being a gentleman."

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0581-00

[Messersmith, G.S.], Vienna. Memorandum of conversation with British Minister [Sir Walford Selby]., 1935 September 24   [Box 5 F36]

Typed Document, 1 p.

Told Selby highlights of recent conversation with Foreign Minister [Egon] Berger-Waldenegg and said Foreign Minister was returning to Geneva in better spirits than on his last trip; Selby said information helpful as he thought it advisable not to approach Foreign Minister too much himself since it tended to aggravate the Italian Minister; Selby spoke of Italian influence in Austria and how it worked to England's detriment; French Minister [Gabriel] Puaux had told him Italian Minister exerting pressure on Berger-Waldenegg to have Austria leave League if Italy did; Puaux then exerted counter pressure to convince Berger-Waldenegg that would be unwise.

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0582-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 September 27   [Box 5 F36]

Typed Letter Copy, 7 p.

Austria torn between England and France on one side and Italy on other; Italian Minister and staff very active, pressuring government and press; for a time government was pro-Italian and some papers severely critical of England, but Italians overreached themselves and reaction set in; press now more restrained; Italian Minister tried to persuade Foreign Minister to commit Austrian Government to leaving League in case Italy does; but French Minister convinced Foreign Minister such action would be unwise; attitude of English and French Ministers very correct; sympathy of Austrian people definitely not with Italy; Austria's economic condition improving steadily; tourist season has been excellent and lasting longer than usual; bombs sent by mail to Salzburg officials; postal authorities suspicious and had package opened by policeman, whose arm was blown off; Nazi source clear, as perpetrators fled to Germany; Prime Minister of Hungary, [Julius] Goemboes planning to visit Germany, ostensibly to attend Goering's hunting party along with some high ranking Poles, but visit no doubt has political significance; Austria concerned about Goemboes visit; Hungary dissatisfied; thinks she has not had fair treatment by powers, and is tempted by German promises; British-French concentration and protective measures in Mediterranean have had effect, and Mussolini showing signs of backing down; problem now is to find way for Mussolini to give up Abyssinian venture without losing face; British-French accord won't mean much unless they make it clear to the world how far they are prepared to go; this they have not so far done; most of the smaller European countries offer lip service to League and to policy of collective security, but when called on to apply sanctions, they hesitate for fear of losing a little trade; quotes from London Times editorial on work of League of Nations in settling disputes.

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0583-00

Messersmith, G.S., Vienna. Despatch No. 560 to Secretary of State [Cordell Hull], Washington., 1935 September 27   [Box 5 F36]

Typed Document Copy, 5 p.

Enclosure: See No. 580. Austrian situation largely unchanged since last despatch; talked with Foreign Minister shortly before his return to Geneva on Sept. 23; Minister somewhat optimistic, but believes hostilities in Abyssinia cannot be avoided; [Julius] Goemboes, Hungarian Premier, has gone to Germany on Goering's invitation to shooting party; will see Hitler while he is in Berlin; Austrians see much significance in Goemboes' visit; German Minister [von Papen] has been spreading idea of division of Czechoslovakia through which Hungary would be given Slovakia; increased Nazi activity in Austria; Italian Minister seeking assurance from Foreign Minister that if Italy leaves the League Austria will follow.

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0584-00

Dunn, James Clement, Washington. To G.S. Messersmith, Vienna., 1935 September 30   [Box 5 F36]

Typed Letter Signed, 3 p.

Interested in Messersmith's comments on foreign press in Vienna; glad Messersmith keeping in touch with Watch Tower situation; Mr. Koerber said before leaving Washington he planned to see Messersmith in Vienna before going to Berlin; many difficulties involved in recent neutrality legislation; word "neutrality" not a cloak which will prevent injury to country; U.S. involvement would result from acts performed by other nations; U.S. cannot join in sanctions against any nation, but should refrain from obstructing measures put into effect by nations trying to keep the peace; glad Austria calm at present; pity this Italo-English-Ethiopian dispute should arise and possibly prevent return to normal of Austria and Central Europe; grateful for Messersmith's reports and for clippings from London Times.

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0585-00

Messersmith, G.S., Vienna. Memorandum on conversations with [Royall] Tyler, League of Nations representative in Hungary and [Douglas] Reed, correspondent for London Times., 1935 October 02   [Box 5 F36]

Typed Document, 2 p.

Tyler spoke of budget reduction in Hungary and Austria and contrasted manner of handling problem in the two countries; compared [Julius de] Goemboes with Goering; both vain, fond of display, and rather stupid; Reed concerned with possibility of formation of German-Polish-Hungarian bloc with Italy leading to division of Czechoslovakia; Tyler said some important Hungarians expressed fear that when there was trouble they would be on wrong side again.

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0586-00

Messersmith, G.S., Vienna. Memorandum of conversations with British and Czech Ministers., 1935 October 03   [Box 5 F36]

Typed Document, 2 p.

Told [Sir Walford] Selby about hunting party arranged by Polish Chargé d'Affaires Gawronsky at which [Gabriele] Preziosi, Rudnay, [Franz] von Papen, and [Karl] Buresch are to be present; idea behind party to get Buresch interested in forming new ministry which would include some nationally minded people; Selby agreed they wouldn't get far with Buresch; Müller, of Freie Presse, said government doing nothing to influence press in Italian situation, but Preziosi and other Italians applying pressure; told [Zdenek] Fierlinger, Czech Minister, about hunt; he said when Gawronski came to Austria as Chargé he conceived idea of splitting up Little Entente and when he found this too big a job he reduced his ambition to splitting up Czechoslovakia.

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0587-00

Messersmith, G.S., Vienna. Despatch No. 566 to Secretary of State [Cordell Hull], Washington., 1935 October 04   [Box 5 F36]

Typed Document Copy, 6 p.

Had interview with Foreign Minister [Egon Berger-Waldenegg] on his return from Geneva Oct. 2; he seemed reassured as result of conversations in Geneva; Italian Minister insistent that Austria leave League if Italy does, but Austria deferring that decision until she has to face it; believes Minister will advise government not to leave League, but that if economic sanctions are applied by League, Austria will not participate; Minister thought Germany would take no aggressive action as result of outbreak of hostilities between Italy and Abyssinia; Austrian press which had been pro-Italian on Abyssinian question, probably because of Italian pressure, now more moderate.

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0588-00

Messersmith; G.S., Vienna. To William Phillips, Washington., 1935 October 04   [Box 5 F36]

Typed Letter Copy, 14 p.

Actual hostilities in Abyssinia started yesterday; conflict may be kept localized in Abyssinia; Italian pressure on Austria to leave League if Italy does; Foreign Minister says Austria will not leave League, but will not join in League sanctions; Austria grateful to Italy for past support, but would rather depend on France and England; French, English, and Czech colleagues in Austria understand delicacy of Austrian situation; Foreign Minister sensed while in Geneva strong feeling that present opportunity should be seized to get rid of authoritarian governments in Italy and Germany; Austrian government not a dictatorial regime such as Italian or German but it is a form of authoritarian government not based on elections, and Austrian leaders no doubt nervous; how definite Anglo-French cooperation will be still not clear; informed circles believe Germany will not act without assurance of success, which she does not yet have; meantime she is doing all possible to stir up trouble in undercover way - suggesting division of Czechoslovakia, Bohemia to go to Germany, Slovakia to Hungary, and Teschen to Poland, suggesting formation of new government in Austria to include some so called "nationally minded" people, offering separate treaties of friendship to France, Czechoslovakia, Yugoslavia, and Poland; only Poland accepted; Poland playing dangerous role.

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0589-00

Geist, Raymond H., Berlin. To G.S. Messersmith, Vienna., 1935 October 07   [Box 5 F36]

Typed Letter Signed, 4 p.

German Government watching European situation as it is affected by Italo-Abyssinia dispute; government attitude neutral and press refrains from criticising Italian action, but general public's sympathies are with Abyssinia; Germany will not make military move at present but does not abandon claim to Memel; rearmament proceeds, but no rush evident; usual time taken for training of new recruits; estimated that by mid 1938 German forces will number approximately 2 1/2 million; Nazi Party still very much in power, and Hitler leans strongly to more radical element; great shortage of raw materials and good stuff; such foreign exchange Germany has or can get goes for raw materials for armament rather than food, and German people are exhorted to "tighten their belts"; persecution of Jews goes on unabated; some bankers prophesying financial collapse, but others feel confident [Hjalmar] Schacht's financial machinery will stand the strain for a long time.

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0590-00

Translation of speech delivered before Assembly of League of Nations by Austrian Representative [Emerio von] Pfluegl on Oct. 9 and published in Wiener Zeitung., 1935 October 10   [Box 5 F36]

Typed Document Copy, 2 p.

Enclosed with No. 592. Affirms Austria's loyal attachment to League principles, but announces that in view of her long friendship with Italy and the debt of gratitude she owes for past help, Austria will not participate in application of sanctions against her friend.

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Items 0591-0608   [Box 5 F37]

0591-00

Resumé of the general European situation, prepared by G.S. Messersmith., 1935 October 10   [Box 5 F37]

Typed Document Copy, 16 p.

Enclosed with No. 593. League of Nations powerless to prevent violations of Covenant; Mussolini wants League's approval of his Abyssinian venture, but has already shown he will pursue his objective with or without League's approval; only hopeful factor in European situation is closer alliance between France and England, which could be a deterrant to aggressors; Germany, to counteract Anglo-French alliance, seeking alliances smaller powers, which she would respect only so long as it served her purposes; Germany not yet strong enough to make move, but European conflict almost certain; America cannot remain isolated, but should establish a neutrality policy.

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0592-00

Messersmith, G.S., Vienna. Despatch No. 573 to Secretary of State [Cordell Hull], Washington., 1935 October 11   [Box 5 F37]

Typed Document By, 6 p.

Enclosure: See No. 590. As predicted, Austrian government has decided not to participate in sanctions which League of Nations may apply against Italy; decision has popular support in Austria; although many Austrians do not approve Italy's Abyssinian venture, they feel they cannot afford to offend a country which has befriended them in past; Hungary also refuses to apply sanctions; chief result of decision is that supplies may be passed from Germany through Austria to Italy; Austria can offer Italy very few war materials, and such trade as she has with Italy will likely be on cash basis, as Italian payments have been slow and Austria cannot afford to offer credit.

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0593-00

Messersmith, G.S., Vienna. Despatch No. 575 to Secretary of State [Cordell Hull], Washington., 1935 October 11   [Box 5 F37]

Typed Document Copy, 1 p.

Enclosure: See No. 591. Transmitting memorandum on general European situation.

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0594-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 October 11   [Box 5 F37]

Typed Letter Copy, 3 p.

No. copy of memo. Both Austria and Hungary have announced they will not apply sanctions against Italy; Austria had good reason, but Hungary obviously looked to Germany in making decision; decision leaves way open for passage of supplies from Germany to Italy; Germany will not denude herself of war materials for Italy and not in position to send much of anything else; Austria and Hungary can supply little in way of war materials and will sell Italy nothing except on cash basis for fear of total Italian collapse; restoration of Monarchy in Greece encouraging to Austrian Monarchists, but not likely to change situation in Austria in near future; sending memorandum on Major aspects of European situation; calls attention to paragraph concerning initialing of German-Japanese agreement.

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0595-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 October 15   [Box 5 F37]

Typed Letter Copy, 7 p.

Hope for peace in Europe rests on Anglo-French cooperation; declaration made by [Pierre] Laval yesterday encouraging but may be too late; Laval making last attempt today to bring Mussolini to reason, by holding off on application of sanctions; all Laval can gain is breathing space; if hostilities break out between England and Italy, France will be on England's side; perhaps small war fought now might prevent larger war later; if Mussolini is allowed to pursue his Abyssinian venture to completion, and in spite of mutual distrust, will join with Hitler, Czechoslovakia will be carved up, Austria absorbed by Germany, and France and England will become second rate powers.

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0596-00

Messersmith, G.S.Vienna. To James Clement Dunn, Washington., 1935 October 17   [Box 5 F37]

Typed Letter Copy, 12 p.

As anticipated, Austria refused to participate in sanctions, which was understandable; Hungary's refusal less understandable; [Royall] Tyler, representative of League Finance Committee for Hungary, said friends in Hungarian Government depressed, and sure they would do the wrong thing; Austrian Foreign Minister left impression Austria would not leave League, no matter what Italy did; government convinced no immediate danger to Austria from Germany; [George E. R.] Gedye, correspondent for N.Y. Times, again distorts news; reporting sham air attack recently, said hundreds of people suffered from tear gas; Col. [Martin C.] Shallenberger, U.S. Military Attaché witnessed attack and reported it was conducted with precision and success; Gedye, a Socialist, completely out of sympathy with present Austrian regime, and lets his prejudices interfere with his objectivity; not the sort of reporting Times usually countenances; General [Charles H.] Sherrill in Paris after his recent visit to Hitler; one who heard address said he gave flattering picture of Hitler and saw no reason why American athletes should not participate in Olympic games in Berlin; Sherrill is intelligent and should know what the situation is, but he was flattered and shown great attention on his visit to Hitler, and he is determined on American participation; in spite of assurances of no discrimination in the Olympics, recent order of German Sports Leader informed members of "Makkabi", German Jewish sports organization, they would not be permitted to take part in Berlin Olympics as according to Nuremberg laws Jews no longer citizens, and only German citizens can represent Germany on an Olympic team; athletic groups in U.S. should be fully informed; [Hjalmar] Schacht said to be disturbed about Nuremberg Law and to have gotten "concession" that in banking and higher industrial circles it is to apply only to 100 percent Jews; all Jews feeling the pressure; financial situation in Germany now so serious, they have resorted to extorting money for the State from individuals; many stories of corruption among high ranking Nazi officials; Bishop of Meissen arrested and imprisoned for illegal exchange transactions of which he was probably innocent, while the Propaganda Ministry openly approached U.S. Commercial Attaché with offer to make exchange transactions which are illegal.

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0597-00

1935 October 17   [Box 5 F37]

Typed Document Copy, 2 p.

Enclosed with No. 599. List of members of newly-formed Austrian Cabinet and list of former Cabinet members who have been dropped.

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0598-00

Messersmith, G.S., Vienna. Despatch No. 583 to Secretary of State [Cordell Hull], Washington., 1935 October 18   [Box 5 F37]

Typed Document Copy, 5 p.

Conversed with Foreign Minister [Egon Berger-Waldenegg] on Oct. 16; he indicated Austrian government had definitely decided not to leave League of Nations if Italy should leave; Minister stated Austria did not intend to benefit by refusal to apply sanctions against Italy; he hoped Austria would continue its normal trade with Italy but there was no expectation of increasing it as result of application of sanctions by other countries; he implied Austria would not supply military goods to either Italy or Abyssinia; Minister observed that because of trade agreement with Germany, Austria could not interfere with her transporting supplies through Austria to Italy; will report in later despatch on changes in Austrian cabinet on Oct. 17.

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0599-00

Messersmith, G.S., Vienna. Despatch No. 584 to Secretary of State [Cordell Hull], Washington., 1935 October 18   [Box 5 F37]

Typed Document Copy, 17 p.

Enclosure: See No. 597. Reports on changes in Austrian Cabinet; changes announced on Oct. 17; immediately afterward Prince [Ernst] von Starhemberg announced that he had authority of the government to unify all the irregular military organizations; Starhemberg succeeded in having Major [Emil] Fey, his rival in the Heimwehr, removed; he also managed to get his friend, Dr. [Ludwig] Draxler, named Minister of Finance in place of [Kurt] Buresch, who was retained in Cabinet as Minister without portfolio; of the six removed, all have been replaced by stronger, more reliable officials; believes government will be stronger as result of change; Austrian press and citizens in general have accepted change without protest; news of change causes almost no comment in foreign press; government insists there will be no change in internal or external policy.

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0600-00

Translation of Court record of trial., 1935 October 19   [Box 5 F37]

Typed Document Copy, 4 p.

Laszlo Benes, defendant, accused of passing on rumors disturbing to public peace and security to correspondents of foreign press; defendant admitted guilt but in defense, said he told correspondents the reports were rumors only and was assured they would not be published; defendant found guilty and sentenced to five days confinement and payment of court costs.

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0601-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1935 October 21   [Box 5 F37]

Typed Letter Copy, 4 p.

Enclosing clipping from London Times of Oct. 17; article by [Norman] Ebbutt bearing on situation of Jews in Germany and American participation in Olympic Games; even some radical Nazis opposed to immediate application of Nuremberg Laws because of concern regarding indications in other countries of non-participation in the games; chief support of Nazi Party among German youth and leaders have great hopes, through the games, to show the young people of Germany how definitely the rest of the world has accepted Nazi ideology; American Committee on the Olympics has given incorrect picture of situation; Jews being forced out of every possible way of earning a living; their property being confiscated; care of needy Jews falling on Jewish community, which can no longer get adequate funds for the purpose.

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0602-00

1935 October 21   [Box 5 F37]

Typed Document Copy, 1 p.

Enclosed with No. 610. Translation of article in Das Echo dealing with sale of Jewish shops in Berlin.

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0603-00

1935 October 22   [Box 5 F37]

Typed Document Copy, 4 p.

Enclosed with No. 610. Translation of article from Neues Wiener Tagblatt relative to ousting of Jews from German business.

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0604-00

1935 October 24   [Box 5 F37]

Typed Document Copy, 2 p.

Enclosed with No. 610. Translation of article in Neues Wiener Tagblatt which announces that names of Jewish German soldiers who lost their lives during the war are to be stricken from memorial tablets.

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0605-00

1935 October 27   [Box 5 F37]

Typed Document Copy, 1 p.

Enclosed with No. 610. Translation of article in Neues Wiener Tagblatt in which an Austrian soldier expresses indignation at German decree ordering Jewish names stricken from memorials.

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0606-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1935 October 28   [Box 5 F37]

Typed Letter Signed, 2 p.

Interested in Messersmith's reference to German-Japanese agreement; must try to learn more about it; no compromise with Italy in sight now that France has agreed to go along with England in matter of sanctions and Italian army moving into Eritrea; presumes [Ernst] von Starhemberg coup result of local politics and not dictated by Italian policy; U.S. papers report von Starhemberg will be regent and perhaps later accept crown.

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0607-00

Messersmith, G.S., Vienna. Despatch No. 598 to Secretary of State [Cordell Hull], Washington., 1935 October 30   [Box 5 F37]

Typed Document Copy, 9 p.

More pro-Italian attitude evident in Austria since changes in cabinet; changes brought about under pressure of Vice-Chancellor Prince [Ernst] von Starhemberg who saw his own position weakened through falling Italian prestige in Austria; as head of the Heimwehr outside Vienna, Starhemberg had 4,000 of these troops brought from Lower Austria to Vienna on Oct. 17; no action was required as there was no disorder, but they were there as a threat of force; many Austrians resent this threat; Italian government delighted with changes in Cabinet, but some concern felt in Paris and London; British Minister reminded Austrians that in recounting all the favors received from Italy, they were forgetting the very substantial support received from England; likely to be other changes in Cabinet; position of Foreign Minister not as secure as it was.

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0608-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 October 30   [Box 5 F37]

Typed Letter Copy, 11 p.

Comments on Austrian Cabinet changes; changes made at insistence of [Ernst] von Starhemberg; 4,000 Heimwehr brought into Vienna and von Starhemberg threatened they would occupy government buildings unless changes were made; most significant change that of Finance Minister; [Ludwig] Draxler to replace [Karl] Buresch; Buresch refused to give von Starhemberg money for Heimwehr; Draxler, von Starhemberg's personal attorney, is a brilliant young man, but considered unscrupulous; English disappointed; they believe changes indicate pro-Italian attitude; Italian pressure groups active in Austria; Austrian people as a whole disapprove Italian venture in Abyssinia and resent Italian influence; von Starhemberg still popular however, and may eventually be kicked upstairs into position of President or Regent; position of Foreign Minister somewhat prejudiced by recent events; [Egon Berger-Waldenegg] a clever and amiable man with diplomatic experience, but he has made several mistakes recently; Chancellor's position difficult; under pressure from Heimwehr and Italians, he doesn't want to offend France and England or League; Austrian government fed up with [Franz] von Papen, but fears to ask for his recall in case someone worse takes his place; his actions become more and more outrageous; Berlin friend called at Legation recently; reported situation in Germany no better; Nazi Party made some serious mistakes; during Party rally at Nuremberg, Hitler proclaimed the Hakenkreuz (Swastica) as sole flag of Germany; masters of German vessels and Army unhappy with proclamation; Propaganda Ministry ordered that names of Jews who fell in war no longer appear on war memorials; with regard to U.S. participation in Olympic games, if any had doubts as to discrimination in Germany, recent developments should convince them; discrimination not only against Jews but against all who oppose Nazi policy.

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Items 0609-0620   [Box 6 F38]

0609-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 November 05   [Box 6 F38]

Typed Letter Copy, 9 p.

New Minister of Social Welfare, [Josef] Dobretsberger, indicated in speech that Austrian Government may seek reconciliation with Social Democrats; news welcomed in England; Dobretsberger backed by Chancellor, but will be opposed by [Ernst] von Starhemberg in view of strong Heimwehr attitude against Social Democrats, shared by von Starhemberg; [Emil] Fey, ousted Minister of Interior, and von Starhemberg have talked things over and apparently patched up differences; all deposed Ministers and Secretaries have been given comfortable berths by new Cabinet; foreign press carries reports that von Starhemberg sending emissaries to [Crown Prince] Otto in Belgium and that agreement has been reached regarding restoration; thinks these reports without foundation; concern felt regarding English and French attitude toward new Cabinet; Government will be sending financial experts to London soon to talk on Credit Anstalt matters and fears embarrassing questions may be asked about Austria's budget and plans of new Finance Minister; English-French cooperation proceeding; English making tremendous preparations in Mediterranean; important English visitor to Vienna recently called at German Legation and talked with Baron von Ketteler, [Franz] von Papen's mouthpiece, who told him that Hitler desired German-English rapprochement, that Austria was only a pawn in the bigger game; English-French agreement already having effect; Poland wavering again; Goering, in Saarbrucken speech made appeal for cooperation with France, insisting Germany had no designs on Alsace and Lorraine; Hungary now concerned over effect of her attitude on sanctions in Geneva; process of expropriating property of Jews and others in Germany proceeding rapidly; [Alexander] Kipnis, American tenor and last Jew left in Berlin Opera, now out; much internal struggle within Nazi Party; some groups within Party thought if [Josef] Goebbels and [Julius] Streicher are eliminated, England, France, and U.S. will accept the present regime; they do not realize it is a question of disappearance of Nazi ideology rather than a few exponents of it; saw report of press conference in Ministry of Propaganda in Berlin recently; newsmen, were told they must not mention fortifications erected in demilitarized zone, the Esser scandal, or German territorial demands.

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0610-00

Messersmith, G.S., Vienna. Despatch No. 592 to Secretary of State [Cordell Hull], Washington., 1935 November 05   [Box 6 F38]

Typed Document Copy, 6 p.

Enclosures: See Nos. 602-605. Transmitting translations of articles from Vienna press relative to anti-Jewish measures in Germany; some anti-Semitism in Austria, but Austrian public opinion in general inflamed by persecution of Jews in Germany and makes rapprochement out of question.

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0611-00

Messersmith, G.S., Vienna. Despatch No. 595 to Secretary of State [Cordell Hull], Washington., 1935 November 08   [Box 6 F38]

Typed Document Copy, 8 p.

Reports on Austrian internal and external situation; recent Cabinet changes accepted by country at large; government hopes to conciliate Social Democrats and gain their support; new government tends to be more liberal; France and England cool to new officials; rumors again of restoration of monarchy, but no chance for that in near future; Austrian munitions plants forbidden by government to make deliveries to either Italy or Abyssinia.

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0612-00

Messersmith, G.S., Vienna. Despatch No. 597 to Secretary of State [Cordell Hull], Washington., 1935 November 11   [Box 6 F38]

Typed Document Copy, 3 p.

Maxwell Anderson's play Elizabeth and Essex had premiere at Burgtheater in Vienna on Nov. 8; after premiere invited fifty or more members of government, director, cast, and representatives of American press to the Legation for supper; other American plays also having successful runs in Vienna.

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0613-00

Messersmith, G.S., Vienna. Despatch No. 609 to Secretary of State [Cordell Hull], Washington., 1935 November 15   [Box 6 F38]

Typed Document Copy, 13 p.

Doubts wisdom of U.S. participation in 1936 Olympics in Berlin; Germans had retained [Theodor] Lewald, who is part Jewish, as head of the German Olympics Committee, but only to convince the outside world that there was no discrimination against Jews; the position was only titular and carried with it no powers or responsibilities; the American Olympics Committee had asked Lewald if the reports of discrimination against Jews in Germany were true, and he had replied that there was no discrimination; he told Messersmith of his reply and said, "You know what would have been the consequences to me if I had told the truth"; Nazis have taken the sportsmanship out of sports, and would make of them a political tool, destroying the traditional Olympics ideals.

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0614-00

Messersmith, G.S., Vienna. Despatch No. 610 to Secretary of State [Cordell Hull], Washington., 1935 November 16   [Box 6 F38]

Typed Document Copy, 9 p.

Reports on activities of Colin Ross, German citizen now residing in Austria; attended lecture by Ross in Vienna recently; Ross said he had just spent two and a half years in America and spoke of the U.S. in highly derogatory terms; called the German-Americans a repressed minority who must rise up and rebuild the U.S. along the "German idea"; Ross says he is an exile from Germany, but he recently published a book in Germany and articles of his have appeared in German papers, which means he is not persona non grata there; no definite information that he is agent of present German government, but believes it likely; he plans to return to America shortly; Justice Dept. should be informed and his activities watched.

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0615-00

Memorandum of conversation between G.S. Messersmith and Chancellor [Kurt] Schuschnigg., 1935 November 16   [Box 6 F38]

Typed Document Copy, 6 p.

Called by appointment on Chancellor at his office; discussed problems in connection with American correspondents; explained to Chancellor that correspondents were responsible men who reported news objectively, but who felt they were not treated in Austria with sufficient consideration; they were not given proper facilities and had great difficulty getting information; Chancellor thanked Messersmith for informing him of situation and said he would look into matter.

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0616-00

Dunn, James Clement, Washington. To G.S. Messersmith, Vienna., 1935 November 20   [Box 6 F38]

Typed Letter Signed, 2 p.

Under heavy strain in Department as result of Italo-Ethiopian situation; Messersmith's letter regarding Olympic Games interesting; not comfortable about U.S. participation, but does not see how Department can interfere; letter regarding changes in Austrian Cabinet and [Franz] von Papen's activities very helpful.

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0617-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1935 November 22   [Box 6 F38]

Typed Letter Copy, 14 p.

Has been unable to get further information on German-Japanese agreement; new Austrian Cabinet settled down to work but is definitely on trial; Austrian budget up for debate; deficit not likely to be increased; Austrian negotiators who went to London to discuss live claims against Credit Anstalt made mistake of asking for much and offering nothing; met cold reception; Alexis, [Ernst] von Starhemberg adviser, accompanied negotiators and had conferences with important people in British Foreign office and with newspaper editors; was invariably asked same question - attitude of new Cabinet toward elections in Austria; Alexis answered frankly saying elections in Austria impossible under present conditions; he pointed out that in election in Czechoslovakia, Germany spent 6 million marks and the consequences could be seen in strengthening of Henlein Party; rumored that Foreign Minister [Egon] Berger-Waldenegg to be replaced and will become Governor of Styria; many feel that he handled Austrian position badly at Geneva; Chancellor and Vice-Chancellor favor keeping him, but he may force himself out if he continues making injudicious remarks; question of monarchy and restoration complicated; most of the men in the government are monarchists at heart and the monarchist tradition strong in perhaps majority of Austrian people but responsible leaders realize it would have to be a constitutional monarchy and doubt Otto would be amenable; their adherence is to the tradition in general rather than to the Hapsburgs in particular; thinks von Starhemberg has ambition to be regent, but believes he will not force any situation to realize ambition; all realize present form of Austrian government is merely stage through which Austria is passing, but essential under existing conditions; no change in Austrian relations with Germany; no progress in von Papen's negotiations; von Starhemberg not having easy sailing; it was publicly announced he had carte blanche to consolidate the various private armies - the Heimwehr, Sturmscharen, and Freiheitsbund into a militia which would be closely coordinated with Army, but they are showing resistance and von Starhemberg has made little progress; new Minister of Social Welfare, Dr. [Josef] Dobretsberger, young, energetic, and full of wholesome ideas, which will be pleasing to England; had talk with Chancellor regarding treatment accorded American correspondents in Austria; as result of conversation Foreign Minister instituted series of luncheons for press and arranged for more direct contact between correspondents and ranking members of government; increasing tendency in France to talk to present government in Berlin, although officially denied in Paris; reports from reliable sources that France turning toward new policy of giving up commitments in Eastern and Southeastern Europe to assure herself of her own security; it would be very shortsighted policy and cannot believe France would be so foolish.

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0618-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1935 November 22   [Box 6 F38]

Typed Letter Signed, 1 p.

Leaving shortly for London for Naval Conference; hopes to gain something of British and European atmosphere; would like to go to Vienna, but doubts there will be time.

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0619-00

Murray, Wallace, Washington. To G.S. Messersmith, Vienna., 1935 November 26   [Box 6 F38]

Typed Letter Signed, 1 p.

Read with interest Messersmith's resumé of European situation accompanying despatch no. 575 of Oct. 11; would like to have time to exchange thoughts by letter, but Italo-Ethiopian situation absorbs all time; hopes to discuss matters with him when Messersmith next in U.S.

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0620-00

Messersmith, G.S., Vienna. Despatch No. 619 to Secretary of State [Cordell Hull], Washington., 1935 November 29   [Box 6 F38]

Typed Document Copy, 10 p.

No appreciable change in situation of Jews in Austria since last despatch on the subject; government opposed to discrimination against Jews; new Cabinet even more strongly opposed; young Jews find it increasingly difficult to enter legal and medical professions, but this difficulty is created by professional organizations, not government, in an attempt maintain an equilibrium between Jews and non-Jews in a profession; in theatre, business, art, literature, and newspaper field there seems to be no discrimination; recent excesses in Germany have brought about a revulsion of feeling in Austria, and people as well as government will probably take a more determined stand against discrimination.

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Items 0621-0633   [Box 6 F39]

0621-00

Messersmith, G.S., Vienna. Despatch No. 623 to Secretary of State [Cordell Hull], Washington., 1935 December 02   [Box 6 F39]

Typed Document Copy, 7 p.

Reports visit of Hungarian Prime Minister [Julius] Goemboes and Hungarian Foreign Minister, Koloman de Kanya, to Vienna on Nov. 28 and 29; they met with Chancellor Schuschnigg, Vice-Chancellor Starhemberg and Foreign Minister Berger-Waldenegg; they discussed problems common to Hungary and Austria, chiefly their relations with Italy and possible economic effects; both countries have refused to apply sanctions against Italy, but both have agreed that they will not leave the League of Nations just because Italy expects to; Goemboes, known to be somewhat pro-German, explored possibility of Austria joining Hungary in seeking closer cooperation with Germany; Austrian Chancellor and Foreign Minister made it clear there was no possibility of rapprochement with Germany at present.

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0622-00

Messersmith, G.S., Vienna. Despatch No. 624 to Secretary of State [Cordell Hull], Washington., 1935 December 02   [Box 6 F39]

Typed Document Copy, 10 p.

Reports on speech by Foreign Minister [Egon] Berger-Waldenegg at meeting of Bundestag on Nov. 28, in which Minister made clear statement of Austria's foreign policy; whole diplomatic corps had been invited to attend; speech began with statement on relations with Italy, and Austrian gratitude for Italy's economic and political support; spoke of friendship of France and Great Britain and role they had played in helping to guarantee Austria's independence; commented on cordial relations with Hungary and improved relations with Czechoslovakia; relations with Germany, he said, had become somewhat "normalized" of late; mentioned press agreement under which both Austria and Germany agreed to be more moderate in their statements concerning the other country; after brief comment on relations with Switzerland and cultural agreements with various countries, discussed importance of Danubian Pact; finally Minister stated Austria's attitude on sanctions.

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0623-00

Messersmith, G.S., Vienna. Despatch No. 625 to Secretary of State [Cordell Hull], Washington., 1935 December 03   [Box 6 F39]

Typed Document Copy, 15 p.

Comments on visit to Vienna of Hungarian Prime Minister and Foreign Minister and on Austrian Foreign Minister's speech on foreign policy; address given by Rost van Tonningen, representative of Financial Committee of League of Nations in Austria, and attended by ranking members of government; reviewed Austria's financial position and pointed out part League has played in maintaining Austria's financial situation; Austrian attitude on sanctions has somewhat alienated League sympathies; van Tonningen cautioned Austria to give close attention to budget; government at present occupied with budget, which it is thought will be drastically cut; representative of Austrian Treasury went to London recently to negotiate with International Committee regarding live claims of Credit Anstalt; offered to settle claims over three year period at about 25 percent of total value; offer unwise and believes it will be unacceptable; in spite of increased trade, Austria still has unfavorable balance, and her best customer, Italy, slow in making payments; further changes in Cabinet rumored; concern over reports of removal of Italian troops on the other side of Brenner Pass and concentration of German troops near Austrian border; new Minister of Social Welfare, [Josef] Dobretsberger, attempting to conciliate Social Democrats, and government is considering holding local elections, though general election impossible at present.

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0624-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1935 December 04   [Box 6 F39]

Typed Letter Copy, 18 p.

Austrian Government disturbed over unfavorable repercussions in Geneva to its attitude on sanctions and unfavorable turn in Credit Anstalt negotiations in London; position of Foreign Minister severely shaken and he is likely to be replaced; Foreign Minister made speech before Bundestag, attempting to clear up Austrian position; his statement acceptable to everyone except Italy and Germany; [Julius] Goemboes and [Koloman de] Kanya visited Vienna last week to talk with Austrian leaders about problems common to Austria and Hungary; position of Minister of Commerce [Fritz] Stockinger uncertain; Stockinger a capable man, but has used his position for private gain; new Minister of Finance [Ludwig] Draxler having difficulties; instead of supplying funds from treasury for Heimwehr, has found it necessary to make serious cuts in budget; his position not secure; likely changes in Cabinet no indication of instability in government; Austrian National Bank made stupid offer to settle live claims against Credit Anstalt at 25 percent of face value; offer refused; Bank ignored psychological and political factors involved; American and English correspondents happy over cooperation they are now getting from Austrian Government; President of Lawyers Association in Vienna has for many years been Jew as 70 percent of Vienna lawyers are Jewish; movement among non-Jewish lawyers to organize separate association; government prevented this by declaring that a non-Jew should be President for next year, with a Jew for Vice-President; not to be interpreted as discriminatory action; intended to relieve anti-Semitic pressure and will be in the interests of the Jewish population; friends from Germany emphasize importance German Government placing on Olympic Games and American participation; realizes little Department can do to influence American Olympic Committee; games should be non-political, but Germans have made political matter of them; U.S. attitude will be deciding factor; if U.S. participates, other countries will; if not, majority will follow lead; position of Jews in Germany getting steadily worse; German friends say "real" action against Jews will begin after Olympics; corruption growing in every part of German Government, everyone tries to get what he can while he can; [Heinrich] Sahm, Burgomaster of Berlin, dismissed and thrown out of Party because members of his family bought in Jewish shops; German people may endure hardships, persecution, and discrimination without revolt, but resources of country used up, and Government maintaining situation at cost of standard of living which people will not endure for long; situation cannot last without outside help; important that other countries refrain from giving help of any kind; French Ambassador to Germany,François Poinset, urging talks with Germany; has high regard for Poinset and no one hates present German regime more than he, but he is so close to situation he has lost perspective and is overcome by what he believes to be immediate danger; thinks talks between Paris and Berlin will come to nothing; it was announced recently in Berlin that Stürmer, [Julius] Streicher's paper, has been sold and that Streicher will cease active association with it; it may have been sold and may become temporarily less offensive, but will likely reappear with its usual viciousness after the Olympics; postscript (dated Dec. 6) states clipping of article by [Norman] Ebbutt from London Times enclosed; Ebbutt particularly well-informed on economic and financial matters in Germany; public resources exhausted and resources of banks and industry almost wiped out; only private capital remains; some of this being expropriated, principally from Jews.

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0625-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1935 December 06   [Box 6 F39]

Typed Letter Copy, 2 p.

Understands [William] Phillips went to London with U.S. delegation [to Naval Conference]; sending clipping from London Times giving sidelight on [Ernst Franz Sedgwick] Hanfstaengl whose case against Daily Express came up some time ago; Hanfstaengl trying to regain favor in Berlin; Keith Merrill here recently to look over residence which is recommended for purchase; Merrill pleased with house and agreed U.S. should buy it as permanent residence for U.S. Minister; price is reasonable; adaptable for Minister with large family or no family, for one with ample means, or one who must live within his official income; Merrill says he will recommend its purchase.

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0626-00

Messersmith, G.S., Vienna. To William Phillips, London., 1935 December 07   [Box 6 F39]

Typed Letter Copy, 2 p.

Sending copy of letter to [James Clement] Dunn dated Dec. 4 which will keep Phillips in touch with developments in Austria; England on right path but doubts proper English-French cooperation as long as [Pierre] Laval is in his position; hopes Phillip's London visit is interesting and not too strenuous.

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0627-00

Messersmith, G.S., Vienna. To Robert Worth Bingham, London., 1935 December 07   [Box 6 F39]

Typed Letter Copy, 1 p.

Sending herewith letter for Undersecretary [William] Phillips, who is to be in London; will appreciate Bingham's seeing that he gets it.

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0628-00

Messersmith, G.S., Vienna. Despatch No. 636 to Secretary of State [Cordell Hull], Washington., 1935 December 13   [Box 6 F39]

Typed Document Copy, 11 p.

Austria's internal situation quiet and controlled, but she occupies precarious position because of general European situation; she is trying to maintain friendly relations with Italy and at the same time cultivate England and France, and to strengthen friendly relations with Hungary and the other states of the Little Entente; it was announced that Chancellor [Kurt Schuschnigg] would visit Prague and address an industrial group there; Austria and Czechoslovakia have been working on a trade agreement and considering the need to plan common course of action in the face of danger from a common enemy; Franz von Papen called on Austrian Foreign Minister and informed him that the German government looked upon Schuschnigg's visit to Prague as an unfriendly act and would prefer that he not make it; another example of German interference in Austrian affairs; visit postponed because of impending changes in Cabinets of both Austria and Czechoslovakia; protests of Germany had nothing to do with postponement; Austria's chief internal problem is balancing her budget; in spite of drastic reductions in the budget, the country will operate under a considerable deficit; concern felt because of reports of German troops massed near Austrian border.

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0629-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1935 December 13   [Box 6 F39]

Typed Letter Copy, 11 p.

[Fritz] Stockinger, Minister of Commerce, to be dropped from Cabinet; likely that [Ludwig] Draxler, Minister of Finance, will take over both posts; Austria concerned over her position in case of sudden German move against her; England and France could not act quickly enough to save her, and Italy, with her Army involved in Abyssinia, not likely to use troops in Austria's defense; reports German plans for placing 30,000 men in barracks within striking distance of Austrian frontier; internal situation in Austria better than in years; financial position sound, business good, unemployment down; country politically quiet; Nazis inactive, Socialists encouraged over attitude of new Minister of Social Welfare, and people more contented and tolerant of government; Italian Press Attaché in Vienna had recent conversation with head of so-called nationally minded Austrians which leads Government to fear Italy preparing way to desert Austria; on Dec. 11 [Franz] von Papen called at Foreign Office and protested proposed visit of Chancellor to Prague; von Papen gave large party last week; invited President [Wilhelm] Miklas weeks ahead and asked him to fix date, so that it was impossible for him to refuse; Messersmith glad previous engagement made his refusal possible; U.S. Military Attaché present and he informs that except for Diplomatic Corps and President's entourage very few people from Vienna attended; not one Jew invited; story is told that just before party von Papen suffered two days from toothache before finding non-Jewish dentist; ties being strengthened between Austria and Hungary and Little Entente states, particularly Czechoslovakia; Chancellor has postponed Prague visit until Czechs can straighten out their position created by retirement of President [Tomás G.] Masaryk; thinks he will go in January as he wants to talk to new Prime Minister, [Milan] Hodza; concern felt here about situation in Czechoslovakia; some division in the ranks and it is questionable if [Eduard] Benes can be elected President; situation may give Henlein Party opportunity to play role; Benes-Hodza would make good combination; Anglo-French proposals to Mussolini have upset situation again in Europe; fears proposals merely a face-saving compromise; too early to speak of change in British attitude, but conservative pressure since election may have influenced policy; compromise may ease situation temporarily, but only prepares way for devastating war later; if compromise is carried through under League auspices it will kill League; Christmas amnesty declared in Austria; imprisoned Social Democrats and National Socialists to be freed; will have good effect in Austria as well as in France and England; commissars controlling political activity in business establishments being abolished; enclosing reproduction of placard appearing above Ski Club entrance at Garmisch-Partenkirchen, where winter Olympics are to be held; placard reads "Entrance to Jews Forbidden"; London Times reports certain newspapers excluded from Italy and Christmas trees prohibited; arrest of priests and persecution of church in Germany continue unabated.

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0630-00

Messersmith, G.S., Vienna. To Robert Worth Bingham, London., 1935 December 16   [Box 6 F39]

Typed Letter Copy, 1 p.

Sending herewith private letter for [William] Phillips; if he has left for Paris, will appreciate having it forwarded to him there.

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0631-00

Messersmith, G.S., Vienna. To Jessie I. Straus, Paris., 1935 December 16   [Box 6 F39]

Typed Letter Copy, 1 p.

Sent by courier envelope addressed to Ambassador [Robert Worth] Bingham in London; in envelope is letter for [William] Phillips; if Phillips is in Paris when courier arrives or is expected shortly, will be grateful if Straus will have someone see that Phillips gets it; otherwise send it on to London.

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0632-00

Messersmith, G.S., Vienna. To William Phillips, London., 1935 December 17   [Box 6 F39]

Typed Letter Copy, 5 p.

Comments on Anglo-French proposals on Abyssinia; believes damage done even if proposals don't go through; Italy threatening to go to war if oil sanctions are applied; Germany threatening to move in Central Europe; England and France want peace, but they are taking shortsighted view; better a short war now than a long and worse war later; no way U.S. can help Europe out of mess except to give moral support; Keith Merrill in Vienna in November, looked at house, and agreed U.S. should buy it as permanent residence for U.S. Ministers; wishes Mr. and Mrs. Phillips could come to Vienna for visit, but understands time is short.

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0633-00

Straus, Jesse Isador, Paris. To G.S. Messersmith, Vienna., 1935 December 18   [Box 6 F39]

Typed Letter Signed, 1 p.

Courier due in Paris on Dec. 21; will see that [William] Phillips receives his letter in Paris, or send it on to England, whichever seems wisest course.

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Items 0634-0646   [Box 6 F40]

0634-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1935 December 20   [Box 6 F40]

Typed Letter Copy, 10 p.

Encouraging developments in European situation; British opinion did not accept Anglo-French proposals to Mussolini and forced [Sir Samuel] Hoare out of office; [Pierre] Laval's position threatened; calls attention to three articles in London Times of Dec. 16, two on Anglo-French proposal and one on Jews under Nazis; Foreign Minister reports Anglo-French proposal aroused protests in Geneva from Russia, Little Entente states, Scandinavian countries and Holland; protests had effect in London and Paris; in England too was realization that the Hoare-Laval proposals were repudiation of basis on which Government had come into power through recent elections; [Eduard] Herriot, head of Radical Party in France, resigned his post in protest; France must decide whether she will stick by England in a policy of collective security; Mussolini committed to such a degree not likely to back down without fighting; England and France would have support of every other country in Europe except Germany; Germany not likely to move for she is not yet ready for war; in reaching these conclusions, has not failed to take Russia and Far East into consideration but thinks Italian and German problems more pressing at present; has no love for dictatorships, but Russia, for whatever purpose, is willing to cooperate with Western Europe for the present; Austria watching developments closely; elections of [Eduard] Benes as President in Czechoslovakia received in Austria with satisfaction; situation in Germany not improved; Hitler, through [Rudolf] Hess, has ordered Austrian Legion to cease agitation for the present; his Austrian policy unchanged, but he didn't want Austrian question to embarrass him in his dealings with other powers; hopes Building Commission when it meets in January will decide to buy present residence; other buyers are after it but U.S. has option until Jan. 15.

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0635-00

Messersmith, G.S., Vienna. Despatch No. 643 to Secretary of State [Cordell Hull], Washington., 1935 December 23   [Box 6 F40]

Typed Document Copy, 7 p.

Budget passed Bundestag; apparently satisfactory offer made to settle "live claims" against Credit Anstalt, most of which are held by English and American banks; Chancellor announced Christmas amnesty which will cover a number of people involved in the Social Democratic revolution of February 1934 and the Nazi putsch of July 1934; believes amnesty may help to conciliate dissenting factions; Austria's external situation remains as reported in despatch no. 636.

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0636-00

Phillips, William, London. To G.S. Messersmith, Vienna., 1935 December 23   [Box 6 F40]

Typed Letter Signed, 1 p.

Received Messersmith's letter of Dec. 17 just before leaving for Switzerland; would like to go to Vienna, but time permits only brief visits to Paris and Berlin before Naval Conference reassembles.

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0637-00

Messersmith, G.S., Vienna. Despatch No. 657 to Secretary of State [Cordell Hull], Washington., 1936 January 10   [Box 6 F40]

Typed Document Copy, 7 p.

Austria's internal situation quiet and under control, but concern is felt for general European situation and possible consequences to Austria; more rumors of impending changes in Cabinet, but believe none will take place soon; also rumor that Prince [Ernst]von Starhemberg has decided to establish himself as regent, perhaps by a coup d'etat, toward end of January; Foreign Office denies rumor; whatever Prince Starhemberg's ambitions, he is a patriot, and will do nothing to disrupt government at this critical time; Chancellor's visit to Prague, first announced for December, now scheduled for Jan. 19; ostensible reason for visit to address industrial group, but he will no doubt call on new President and Minister; some elements in Hungary not happy about visit; Foreign Minister [Egon] Berger-Waldenegg planning trip to Budapest doubtless to counteract ill effects of Chancellor's visit to Prague; Austrian press now less pro-Italian; while still friendly, more reserved and cautious.

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0638-00

Dunn, James Clement, Washington. To G.S. Messersmith, Vienna., 1936 January 14   [Box 6 F40]

Typed Letter Signed, 2 p.

No one in better position than Messersmith to appraise developments in Europe; neutrality legislation absorbing attention of Department; Secretary appearing before Congressional Committees almost daily; [James Barclay] Young sailing for Vienna tomorrow; knows Messersmith will be happy to have him.

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0639-00

Messersmith, G.S., Vienna. Despatch No. 666 to Secretary of State [Cordell Hull], Washington., 1936 January 16   [Box 6 F40]

Typed Document Copy, 7 p.

Rumors persist concerning changes in Cabinet, but are less prevalent; rumors persist too concerning Prince [Ernst] von Starhemberg's plan to declare a regency with himself as regent; Foreign Office states that report is without foundation; Patriotic Front to meet in Vienna on Jan. 19; one report is that von Starhemberg will be declared regent at this meeting; rumors undoubtedly traceable to sources unfriendly to Government; von Starhemberg unquestionably interested in establishing regency, but he places the good of his country before personal advantage and realizes this is no time for change in government; regency not necessarily a prelude to restoration of monarchy; Chancellor left today for Prague, ostensibly to make speech but actually to discuss trade agreement; noticeable increase in Nazi propaganda during last few weeks; concern felt over Italy's inability to make payments for Austrian exports.

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0640-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 January 17   [Box 6 F40]

Typed Letter Copy, 2 p.

Has had attack of influenza and unable to write at length; many rumors concerning eminency of regency; Government has no intention of declaring regency in near future; rumored also that reason for Chancellor's visit to Prague was to prepare way for restoration; has been assured that only significance of trip is desire to create favorable background for completion of Austro-Czechoslovakian trade agreement though he will probably talk over political questions with [Eduard] Benes and [Milan] Hodza.

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0641-00

Messersmith, G.S., Vienna. Despatch No. 673 to Secretary of State [Cordell Hull], Washington., 1936 January 23   [Box 6 F40]

Typed Document Copy, 14 p.

Chancellor went to Prague on Jan. 16 and returned Jan. 19; his speech before Industrial Club well received and had good press throughout Europe except in Hungary and Germany; he stated that economic cooperation between Austria and Czechoslovakia and between other states of Central Europe was essential; visit strengthened good feeling between the two countries and prepared favorable background for resumption of negotiation of trade agreement; Foreign Minister [Egon] Berger-Waldenegg not optimistic about trade agreement; Austria's unfavorable balance of trade with Czechoslovakia presents difficulties; meeting of Vaterlandische (Patriotic) Front held in Vienna on Jan. 19: addresses of Chancellor [Kurt Schuschnigg] and Vice-Chancellor [Ernst von Starhemberg] were significant; both emphasized that rumors of impending change in government were false and that Austria's chief concern at present was maintenance of her independence; rumors traceable to Nazi sources; constructive criticism of government welcomed; Austrian press comment on death of King of England indicates change of attitude; Government now orienting its policy toward placing major dependece on League and England and France; Vice-Chancellor von Starhemberg going to London for funeral; slowness of Italian payments more obvious and Austria's exports to Italy decline; no orders from Italy now accepted except on cash basis; Austrian economy still in fair condition; with her reduced budget, she may get through year without seeking a foreign loan.

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0642-00

Dunn, James Clement, Washington. To G.S. Messersmith, Vienna., 1936 January 24   [Box 6 F40]

Typed Letter Signed, 2 p.

Regrets Messersmith's illness; interested in Messersmith's comments on increasing tendency for Austria to cooperate with Little Entente; hard to form opinion on outcome of Italo-Ethiopian dispute; happy about purchase of Legation in Vienna.

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0643-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1936 January 25 29   [Box 6 F40]

Typed Letter Copy, 26 p.

Last part of letter dated Jan. 29. Chancellor [Kurt] Schuschnigg's visit to Prague assumed more importance than was intended; as originally planned, he made talk before Prague Industrial Club, hoping to influence negotiations for Austro-Czechoslovakian trade treaty; conferred also with [Eduard] Benes and [Milan] Hodza on mutual problems; press played up visit and attached political significance to it; much speculation that Schuschnigg was preparing way for restoration of monarchy; Foreign Minister [Egon Berger-Waldenegg] reported chances not good for trade treaty; balance of trade in favor of Czechoslovakia, and in spite of existing good will, Czechoslovakia cannot afford to reduce the imbalance; Patriotic Front met in Vienna Jan. 19; Schuschnigg and Prince [Ernst] von Starhemberg made speeches, assuring audience that Government's main interest was in preserving Austria's independence and that they would do nothing to disturb situation either internally or externally; von Starhemberg also said monarchy in Austria was an internal matter and a question for Austria alone to decide; probably to scotch rumors that he contemplated making himself King, he added that if monarchy was restored at any time, only a Hapsburg should occupy the throne; his statement led many to believe that restoration was eminent; caused great concern among neighboring countries, particularly Rumania and Yugoslavia; has made some progress in improving position of U.S. news correspondents in Austria, but some of them hold such strong personal political convictions they cannot see events here in proper perspective; [George E. R.] Gedye of the N.Y. Times, continues to offend with his highly colored reports; was surprised when [Reuben Henry] Markham of the Christian Science Monitor, usually well informed, sent in article giving distorted picture of Austrian situation; von Starhemberg has left for London to attend funeral of King George; he will make good impression in London; British Legation arranging memorial service for King George in British Chapel in Vienna; Austrian exports to Italy decreasing because of Italy's inability to pay; mild winter with little snow has affected winter sport tourist trade; inclosing Nazi handbill being circulated in Austria, usually dropped into letter boxes at night; it is Nazi demand "on behalf of the Austrian people" that they be given right to vote on the form of the state and on external relations; major Austrian policy indicates less and less leaning on Italy, orientation to closer dependence on League and on England and France, and cultivation of closer relations with Little Entente and Balkan states; developments in France still uncertain but indicate stronger position back of League and collective security; [Albert] Sarraut may not last, but [Pierre] Laval is out and way is cleared for closer Anglo-French cooperation; Sarraut will have help of Minister of Foreign Affairs, Pierre-Etienne Flandin, who can be depended on to make every effort to maintain status quo; England no longer so interested in air pact with Germany in spite of German progress in air armaments; already evidence of violations of Naval pact; information given recently concerning German-Japanese agreement came from reliable source; both German and Japanese spokesmen deny agreement exists, which proves nothing; much speculation about Hitler's health; it is reported he has cancer of the throat; leading German surgeon reports it harmless growth; in recent speech Hitler referred to his successor; concern felt that ratification of French-Soviet pact will lead to counter action by Germany in militarizing Rhineland; Italy declares Abyssinian war will not interfere with Italian cooperation in Europe, particularly with reference to maintenance of status quo in Southeastern Europe, and that she will accept oil sanctions as well as others; pleased that U.S. neutrality legislation leaves sufficient discretionary power to President and State Department; delighted with purchase of house as permanent residence for U.S. Minister; has completed sale and will send documents to Washington.

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0644-00

Dunn, James Clement, Washington. To G.S. Messersmith, Vienna., 1936 January 30   [Box 6 F40]

Typed Letter Signed, 1 p.

Regrets Messersmith's illness; interested in Messersmith's comments on visit of Austrians to Prague and on possible restoration of monarchy.

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0645-00

Statements made in London by Prince [Ernst von] Starhemberg, as reported to G.S. Messersmith by unidentified but "trustworthy" source., 1936 February 02   [Box 6 F40]

Typed Document Copy, 5 p.

Enclosed with Nos. 646 and 653. Convinced that Hapsburg restoration at this time would not be in best interest of Austria or other countries of Southeast Europe; Little Entente would oppose restoration, fearing revival of Austro-Hungarian Empire; succession states have reached state of political maturity and independence and it would no longer be possible or desirable to govern them from one capital; a recognition of common interests and political and economic cooperation is desirable; Hungary and Yugoslavia presenting obstacles; Yugoslavia mistrustful; considers whole world made up of conspirators; Hungarians cannot give up their revisionist policy; no chance for Austro-German settlement until Hitler admits his policy up to now a mistake, and recognizes the absolute independence of Austria; Austria does not consider the Abyssinian question her concern and could not afford to apply sanctions against Italy; it was not England, not the League, but Italian troops on the border which had saved Austria after the Dollfuss murder.

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0646-00

Messersmith, G.S., Vienna. Despatch No. 684 to Secretary of State [Cordell Hull], Washington., 1936 February 06   [Box 6 F40]

Typed Document Copy, 14 p.

Enclosure: See No. 647. Talks began in Vienna on Austro-Czechoslovakian trade agreement; conditions for talks favorable, but technical difficulties may prolong conclusion of agreement; Hungary opposed to Austro-Czech agreement; situation in Austria quiet; interest centers in London and Paris where there has been much diplomatic activity in recent weeks, much of it concerned with Austrian independence; visit of Vice-Chancellor Prince [Ernst von] Starhemberg to London as head of Austrian delegation to attend funeral of King George had good effects; returned by way of Paris and talked with Foreign Minister Pierre Etienne Flandin; von Starhemberg had planned to go to Belgium for visit with Archduke Otto, but abandoned plan when advised that such a visit might arouse more speculation about Hapsburg restoration; Ex-Empress Zita and Otto reported to have been in Paris while von Starhemberg was there, but had no meeting with him; had conversation yesterday with Czech and Jugoslav Ministers to Austria; both seemed reassured about the question of restoration; none of states of the Little Entente or the Balkan Union care to see a Hapsburg restoration; no progress on Danubian Pact and there will be none as long as Italy is engaged in Abyssinia; Pact, to be effective and binding, cannot be concluded without cooperation of Italy; attempt to draw Soviet Union into scheme as guarantor of status quo meets with no approval in countries of Central Europe; Franco-Soviet pact ratification expected soon as well as conclusion of agreement between Rumania and Russia; concern felt that Germany may form open alliance with Italy and perhaps draw into it Poland and Hungary; informed by Mr. [Franz] Peter, Secretary General of Foreign Office, that Austrian-German relations worse; [Bernhard Wilhelm] von Bülow, Under Secretary in the Wilhelmstrasse had told the Austrian Minister in Berlin recently that the press truce between Austria and Germany was at an end, and placed blame on Austria for having broken truce; Austria had observed truce more carefully than Germany, but German government decided it no longer served its purposes and put an end to it; Austrian press has been informed that it is no longer restricted.

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Items 0647-0663   [Box 6 F41]

0647-00

Translation of statements made in Paris by Vice-Chancellor Ernst von Starhemberg as reported in Neues Wiener Tagblatt., 1936 February 06   [Box 6 F41]

Typed Document Copy, 1 p.

Enclosed with No. 646. Austria reserves to herself full freedom of action and decision on matters of internal policy, including question of restoration, but intends to take no action which might disturb peace of Europe.

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0648-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1936 February 07   [Box 6 F41]

Typed Letter Copy, 7 p.

[Prince Ernst von] Starhemberg's visit to London and Paris had good results; conversations dispelled fears of Little Entente regarding restoration, cleared ground for conclusion Rumanian-Soviet agreement and for Franco-Rumanian trade agreement, and provides stimulus for closer cooperation among all countries of Southeastern Europe; von Starhemberg had planned to go to Belgium for talk with Archduke Otto, but was advised not to; with increasing isolation of Germany and Italy, some fear that the two might get together, but they distrust each other and are not likely to join forces; Hungary and Poland still on fence and will play that game as long as possible; relations between Germany and Austria no better; [Franz] von Papen informed British Minister he was making no progress in Austria because some of his colleagues worked against him - meaning British and French Ministers.

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0649-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 February 08   [Box 6 F41]

Typed Letter Copy, 11 p.

Friend recently in Berlin reported two-hour talk with [Hjalmar] Schacht; Schacht feels situation hopeless unless Germany gets help from England and U.S.; Hitler, told no possibility of relief from outside unless Germany changes her external and internal policies, remarked, "All this does not interest me"; German friend pessimistic; two children of former marriage recently visited him and showed evidence of Nazi training; Hitler's throat affection apparently not malignant, but general mental and physical condition poor, and much talk about successor; German consumption of Champagne increasing; new middle class considers champagne a status symbol; friend reported Goebbels supplied money to finance "Croix de Feu" in Paris; [Emil George] von Stauss mentioned as successor to [Hans] Luther as Ambassador to U.S.; von Stauss unscrupulous instrument of regime; pro-Italian attitude of [James L.] Garvin of the Observer may be influence of daughter in Italy, who is confirmed Fascist; London Times editorial gives correct estimate of German decree defining status of Army in case of internal trouble; does not mean Army has gone over to regime, but that it has won another victory over the Party; no real sentiment in Austria for restoration of monarchy, but Austrians resent Czech objections; in old Empire Czechs considered a secondary population; Hungary playing dog-in-the-manger policy; trying to counteract growing good feeling between Austria, Czechoslovakia, and Yugoslavia; [Julius] Goemboes would probably be replaced as Prime Minister if he had a likely successor; has read [Breckinridge] Long's telegrams from Rome; Long seems concerned that further isolation of Germany and Italy may force alliance between the two; Germany has most to lose by alliance and not likely to ally herself with partner so weak and near breaking point as Italy; Germany still hoping time will work in her favor; believes powers should accept Russian cooperation in guaranteeing Austrian independence, even though cooperation is offered for selfish reasons; England has had fill of agreements with Germany since Naval pact has already been violated; way now open for closer cooperation between London and Paris; disappointed in John Bassett Moore's comments on neutrality matter; in recent years he has lived in retirement and has little knowledge of forces at work in Europe, but his word still carries weight.

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0650-00

Resumé of major aspects of European situation as seen from Vienna, prepared by G.S. Messersmith., 1936 February 12   [Box 6 F41]

Typed Document Copy, 14 p.

Enclosed with No. 651. London most important capital in Europe and exercises most influence; British definitely behind League and policy of collective security, which involves no credits to Germany and no separate agreements with her; recognizes military threat of Germany and understands her territorial aspirations; committed to cooperation, with France; France, under [Pierre-Etienne] Flandin, has abandoned Laval policy of seeking direct understanding with Germany and will depend on the League, close cooperation with England, and a system of alliances within the Little Entente and the Balkan Union; she will continue to try to keep friendship of Italy as a prop in Southeastern Europe, but will be less disposed to make compromises; in Czechoslovakia there is now more liberal statesmanship and better comprehension of economic factors; emphatic statements by Austrian leaders that there will be no change in their government have allayed fears in Prague, Belgrade, and Bucharest of a Hapsburg restoration and cleared way for better political and economic relations between countries of the Little Entente and the Balkan Union; Turkey showing reasonable attitude under British influence; situation in Egypt continues to offer difficulties, but appears on way to adjustment; Russia apparently disposed to support League and collective security; ratification of Franco-Soviet Pact and of Soviet-Rumanian Pact strengthens Russia's position; Poland remains on the fence at present,but her agreement with Germany may not be able to withstand economic pressures and old resentments; Switzerland, feeling her neutrality threatened, taking measures to strengthen her defenses, as are Belgium and Holland; in Scandinavian countries there is increasing apprehension of Germany's program; Italy feeling the pressure of her isolation; her financial position poor and continues to grow worse; she would like some face saving compromise on the Abyssinian question; in Germany, internal situation worse, with financial factor approaching a crisis; may move toward remilitarization of Rhineland but thinks Germany will take no overt action either there or against Austria until after Olympics; all Europe now understands German aims; hopes for peace depend on steadiness of British policy, and Austria remains principal object of policy, for it is on the maintenance of her independence that peace largely depends.

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0651-00

Messersmith, G.S., Vienna. Despatch No. 692 to Secretary of State [Cordell Hull], Washington., 1936 February 13   [Box 6 F41]

Typed Document Copy, 2 p.

Enclosure: See No. 650. Transmitting resumé of major aspects of European situation today as seen from Vienna.

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0652-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1936 February 14   [Box 6 F41]

Typed Letter Copy, 3 p.

Calls attention to two despatches sent by current pouch; resumé giving position in various European countries with respect to collective security and Austrian independence attached; dispatch no. 696 states views expressed by [Prince Ernst] von Starhemberg in London; asks that statement be kept confidential, since it came from confidential English source; French did not handle Starhemberg as adroitly as the English; Archduke Otto's trip to Paris and attempt to see Starhemberg unfortunate; matter of restoration now shoved to background; Ambassador [to France] and Mrs. [Jesse Isador] Straus in Vienna for several weeks for Mrs. Straus to consult doctor; treatment helpful and Strauses leaving for Paris tomorrow.

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0653-00

Messersmith, G.S., Vienna. Despatch No. 696 to Secretary of State [Cordell Hull], Washington., 1936 February 14   [Box 6 F41]

Typed Document Copy, 2 p.

Enclosure: See No. 645. Transmitting confidential statement of views expressed by Prince [Ernst von] Starhemberg during recent visit to London.

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0654-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 February 14   [Box 6 F41]

Typed Letter Copy, 1 p.

Sending articles from London Times sent in by Vienna correspondent and editorial from London Times of Feb. 10; appending picture of [Ernst Rudiger] von Starhemberg taken during Paris visit.

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0655-00

Geist, Raymond H., Berlin. To James C[lement] Dunn, Washington., 1936 February 15   [Box 6 F41]

Typed Letter Copy, 6 p.

Enclosed with No. 658. Has been in hospital for operation; sums up salient points of German situation; economic boom continues as result of government spending; short-term borrowing finances armament and other government programs; [Hjalmar] Schacht and [Ludwig Schwerin] von Krosigk realize policy not sound economically but must abide by will of Government (i.e. the Party); short-term indebtedness increases; increase in governmental control of business; decrease in standard of living for masses through lower wages and higher living costs; exports to be forced; Government officials classified in three groups in descending order of power and prestige: (1) Nazi-Radical, including Hitler, [Rudolf] Hess, [Heinrich] Himmler, [Josef] Goebbels, Julius Streicher, and [Wilhelm] Frick, (2) Nazi-Conservative (limited influence) including [Hermann] Goering, [Werner] von Blomberg, and [Hans] Frank, (3) Conservative (little influence) including [Ludwig Schwerin] von Krosigk, [Hjalmar] Schacht, and [Konstantin] von Neurath; economists agree that financial policy must lead to disaster but nobody predicts when; East Prussians believe Prussian militarism has decayed; if true, Nazis cannot strike; no immediate prospects for change in regime; sees no change in policy as long as Hitler is in power.

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0656-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1936 February 19   [Box 6 F41]

Typed Letter Signed, 2 p.

Acknowledges Messersmith's letters of Jan. 25 and Feb. 7; letter of Jan. 25 contains much interesting information; letter concerning [Ernst Rudiger] von Starhemberg's London visit a graphic account; would like to meet von Starhemberg; Messersmith's observations on possible German-Italian alliance of value.

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0657-00

Messersmith, G.S., Vienna. Despatch No. 707 to Secretary of State [Cordell Hull], Washington., 1936 February 21   [Box 6 F41]

Typed Document Copy, 10 p.

Austria's internal situation remains quiet, but diplomatic activity in various capitals, centering around Austria, has been intense; Czechoslovak Prime Minister, [Milan] Hodza trying to further Central European cooperation; negotiations on Austrian Czechoslovakian trade treaty making progress, but slowly; Germany sent peremptory note to Prague demanding that any Austro-Czech agreement should not discriminate against German interests; Italy too informed Prague government that it assumed such an agreement would mean that Czechoslovakia would abandon the sanctions against Italy in which it has been participating; Foreign Minister [Egon] Berger-Waldenegg left Feb. 19 for holiday in Florence; visit apparently has no political implications, though there are rumors to the contrary; relations between Austria and Yugoslavia strained; Yugoslavia wants firm pledge from Austria that monarchy will never be restored, but Austria unwilling to make such pledge; Turkish Minister for Foreign Affairs [Dr. Tevfik Rüstii Aras] traveling from capital to capital in interest of greater rapprochement of Southeast European states.

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0658-00

Geist, Raymond H., Berlin. To Robert W[alton] Moore, Washington., 1936 February 24   [Box 6 F41]

Typed Letter Copy, 1 p.

Enclosure: See No. 655. Enclosing copy of letter to [James Clement] Dunn; Great Britain informed Hitler there could be no rapprochement until German policy changed with respect to (1) Jewish question (2) Church question (3) interpretation of law and (4) freedom of the press; information came from important source in German Army; increasing pressure from Army to change radical policies of present German regime.

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0659-00

Messersmith, G.S., Vienna. Despatch No. 712 to Secretary of State [Cordell Hull], Washington., 1936 February 27   [Box 6 F41]

Typed Document Copy, 6 p.

Austro-Czechoslovakian trade agreement nearing completion and now certain to be concluded; Czech Prime Minister [Milan] Hodza to arrive in Vienna March 8, and agreement will be signed then; terms of agreement have not been made public but informed by Foreign Minister that Austria's unfavorable trade balance with Czechoslovakia will be considerably reduced; in spite of objections from Germany and Hungary, successful conclusion of agreement is hopeful sign; Chancellor and Foreign Minister planning to visit Budapest early in March, and hope to convince Hungarian government that agreement with Czechoslovakia implies no lack of Austro-Hungarian cooperation.

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0660-00

Messersmith G.S., Vienna. Despatch No. 713 to Secretary of State [Cordell Hull], Washington., 1936 February 27   [Box 6 F41]

Typed Document Copy, 7 p.

Foreign Minister [Egon] Berger-Waldenegg returned to Vienna on Feb. 25 from his holiday in Florence; called on Minister at Foreign Office on 26th and had long conversation with him; reported that his trip was a pleasure trip only but that he did talk with [Fulvio] Suvich, Under Secretary of Foreign Affairs, while in Italy; Suvich told him situation bad in Germany and he didn't think it likely that there would be an Italian-German alliance; Suvich believed there was some kind of understanding between Belgrade and Berlin; Minister said he had been informed that the internal situation in Yugoslavia was poor, with much unrest and criticism of the government; German Minister [Franz] von Papen trying to place obstacles in way of Southeast European rapprochement, especially in Budapest and Belgrade; von Papen believed to be responsible for propagating idea that restoration of monarchy was imminent, in spite of denials by Austrian leaders.

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0661-00

Memorandum on editorial and news item which appeared in Manchester Guardian on Feb. 22, 1936., 1936 February 28   [Box 6 F41]

Typed Document Copy, 1 p.

Editorial comments frankly on [Franz] von Papen's activities in Germany and Austria during last few years; editorial and news story, entitled, "An Emperor for Austria," seem to have had their effects in Belgrade; Press Attaché of Yugoslav Legation sent for Manchester Guardian correspondent here, and he and Yugoslav Minister interviewed him, obviously under instructions from Belgrade; they assured correspondent that Yugoslavia believed in the Little Entente and would cooperate in every way possible; they also told correspondent that visit of Czech Prime Minister [Milan] Hodza to Belgrade had some good effects.

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0662-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1936 February 28   [Box 6 F41]

Typed Letter Copy, 11 p.

Talked with Foreign Minister [Egon Berger-Waldenegg] morning after his return from holiday in Florence; Minister saw Italian Secretary for Foreign Affairs [Fulvio] Suvich who reported little likelihood of German-Italian alliance; only half-way measures taken to suppress Fascist activities in France; Austro-Czech trade treaty expected to be signed in near future; [Milan] Hodza coming to Vienna Mar. 8 for final talks on treaty; Chancellor and Foreign Minister planning trip to Budapest to convince Hungarians treaty will work to their advantage; Hodza's visit to Belgrade not altogether successful; Yugoslavia torn by internal dissension and fear of restoration in Austria, and attracted by German promises of slices of Austrian and Hungarian Territory; press attaché of Yugoslav Legation talked with correspondent of Manchester Guardian; told him Hodza's visit to Belgrade had better effect than newspapers indicated; obviously under instructions from Belgrade, press attaché reported Yugoslavia interested in cooperation and opposed to Anschluss for Austria, but would like more assurance that Hapsburg restoration is not contemplated; Poland and Hungary will stay on fence as long as possible; situation in France better under [Albert] Sarraut government; British position, though fixed, not altogether clear;[Anthony] Eden's last speech a disappointment; inconceivable that man like [Charles Stewart, Marquess of] Londonderry should visit Germany and allow himself to be flattered and gulled into believing anything; both Catholics and Protestants in Germany still resisting Party influence; believes financial and economic factors will bring about regime's downfall; Mr. and Mrs. [Robert Woods] Bliss touring Europe; Mrs. Bliss became ill in Prague with bronchial pneumonia and in bed at [Joshua] Butler Wright's; Bliss went on to Budapest and came to Vienna for few days, but returned to Prague when informed his wife no better.

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0663-00

Press clipping, undated, from unnamed newspaper., [1936 February]   [Box 6 F41]

Article entitled "Was ein Völkischer im Dritten Reich sah". (What an [Austrian] National Socialist saw in the Third Reich.) Illegible handwritten memo attached.

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Items 0664-0680   [Box 6 F42]

0664-00

Messersmith, G.S., Vienna. To Raymond H. Geist, Berlin., 1936 March 03   [Box 6 F42]

Typed Letter Copy, 3 p.

Acknowledges Geist's letters of Feb. 23 and 28 and copies of Geist's letters to [James Clement] Dunn and [Robert Walton] Moore; thinks letters splendid; should be helpful to Department; distressed to hear of Geist's sister's illness but delighted that Geist's operation was so successful; planning to leave Vienna evening of Apr. 4, stay 5th and 6th in Berlin, and sail for home from Hamburg on 8th; expects to keep quiet in Berlin, but will arrange to see Ambassador [William E. Dodd] and [Douglas] Jenkins, and hopes to see as much of Geist as possible; thinks Geist entirely right in matter of building and hopes he will remain firm; will support Geist's position on reaching Washington.

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0665-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1936 March 05   [Box 6 F42]

Typed Letter Copy, 9 p.

noted Phillips' interest in Prince [Ernst Rudiger von] Starhemberg; Starhemberg has some weaknesses but his good qualities outweigh them; a dedicated patriot and hard worker; somewhat reticent in private conversation; uncomplimentary references to him in recent American publications not justified; nervousness felt in Austria because of reported visit of [Konstantin] von Neurath to Italy (report unfounded); heads of state in Austria and Hungary invited to Rome on Mar. 19; neither country happy about invitation as they don't wish to offend England, France, and Little Entente countries, but will have to accept; Mussolini probably making grandstand play; concern felt in certain quarters over possible change in Austrian foreign policy; was assured by Foreign Minister there had been no change, but that Austria had to keep on good terms with Italy and was interested in strengthening ties with Little Entente as well as conserving friendship and support of England and France; if Mussolini attempts to bring Austria and Hungary into any scheme distasteful to Little Entente, England or France, he will fail; it is reported, though not officially that [Jan Garrigue] Masaryk, Czech Minister in London, will replace [Zdenek] Fierlinger in Vienna; Fierlinger one of best chiefs of mission in Austria, but he is a socialist with very liberal views and is not personally popular in Vienna; appointment of Masaryk, on top of successful negotiation of trade treaty would give impetus to movement for economic cooperation; tendency, chiefly in Hungary, to belittle movement toward greater cooperation between Little Entente and Austria and Hungary; Chancellor and Foreign Minister going to Budapest on Mar. 13 and will try to convince Hungarians that their extreme views on revision can be disastrous; has heard [Wilhelm] Furtwangler to be invited to head New York Symphony; an unwise choice; Furtwangler known to be unfriendly to America; better choice would be Erich Kleiber; planning to sail from Hamburg on April 8; will spend day or two in Berlin on way; must see aging mother, but will try to be in Washington for a few days about middle of April.

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0666-00

Messersmith, G.S., Vienna. Despatch No. 719 to Secretary of State [Cordell Hull], Washington., 1936 March 06   [Box 6 F42]

Typed Document Copy, 10 p.

Nazi activity and discontent with present Austrian government have been strongest in provinces of Tirol, Styria, and Carinthia; discontent largely due to economic factors; efforts of Minister of Agriculture [Ludwig] Strobl to improve condition of the farmer in the provinces have met with some success; Chancellor [Kurt] Schuschnigg has made several visits to Tirol and Carinthia, where he was received favorably; situation in Styria has been improved by popularity there of its native son, Foreign Minister [Egon] Berger-Waldenegg; Chancellor has indicated intention of government to carry through present constitution and way is being prepared for elections in some of the ständs; Finance Minister [Ludwig Draxler], in recent speech in Vienna, emphasized improved financial position of government and intention of the government to maintain sound budgetary policy; implied that foreign capital could find favorable investment in Austria; Austrian-Czechoslovakian trade treaty expected to be concluded shortly; Czech Prime Minister [Milan] Hodza to arrive in Vienna on March 6; Austrian and Hungarian governments received invitations to send their heads of state to Rome on March 19; Chancellor [Kurt Schuschnigg] and Foreign Minister [Egon Berger-Waldenegg] to represent Austria and Prime Minister [Koloman de Kanya] to represent Hungary; much speculation as to reason for visit; according to Berger-Waldenegg it may be only to celebrate second anniversary of Rome Protocols, but some apprehension felt that Rome may make requests of them which they are not prepared to meet; afraid too of effects of visits on English and French attitude; while they wish to retain friendship of Italy, they want to do nothing to offend France and England; [Prince Ernst von] Starhemberg to visit Rome later; Starhemberg lays great importance on Italian troops on Brenner being maintained; probable that this concern is reason for his visit.

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0667-00

Messersmith, G.S., Vienna. Despatch No. 721 to Secretary of State [Cordell Hull], Washington., 1936 March 09   [Box 6 F42]

Typed Document Copy, 2 p.

Enclosure: See No. 668. Transmitting memorandum covering observations on German military occupation of the demilitarized Rhineland.

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0668-00

Observations on the German military occupation of the demilitarized Rhineland zone on Mar. 7., 1936 March 09   [Box 6 F42]

Typed Document Copy, 8 p.

Enclosed with No. 667. German denunciation of Locarno Pact most flagrant violation of all; ratification of Franco-Soviet Pact a blow to German aspirations in Southeast Europe, and occupation of Rhineland a countermove; if Germany gets away with tearing up Locarno Pact, it will open way to further aggression, and Austria certain to be next; Germany, from past experience, is counting on inaction, or, at most, protests, from France and England; Germany not yet prepared for war and if France and England should take prompt and determined action, Hitler and Nazism could be defeated.

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0669-00

Messersmith, G.S., Vienna. Despatch No. 724 to Secretary of State [Cordell Hull], Washington., 1936 March 12   [Box 6 F42]

Typed Document Copy, 6 p.

Prime Minister [Milan] Hodza of Czechoslovakia arrived in Vienna on March 9 and was entertained by Austrian officials at luncheon, a performance of the opera, followed by supper at the Chancellory,and a reception at the Czechoslovakian Legation; at other times he was in constant conference with Chancellor [Kurt] Schuschnigg, the Foreign Minister Baron [Egon] Berger-Waldenegg, the Vice-Chancellor, Prince [Ernst von] Starhemberg, the Minister of Commerce Dr. [Fritz] Stockinger, and the Minister of Agriculture, Mr. [Ludwig] Strobl; came to complete agreement on trade treaty, but due to length official document not yet drawn up and not yet ready for signatures; although general European situation was discussed, talks were limited chiefly to economic cooperation; communiqué and press comment somewhat reserved on subject; provisions of treaty not yet made public, but it is known that by it Austria's unfavorable trade balance will be reduced.

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0670-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1936 March 13   [Box 6 F42]

Typed Letter Copy, 8 p.

Germany presented Europe with fait accompli by occupying Rhineland; seems clear Hitler had encouragement from Mussolini; now is time for France and England to take firm stand; they would have backing of all Europe except Italy and possibly Poland and Hungary; Germany not yet prepared for war, and better to risk brief successful war now than delay and face catastrophic war later; if action is taken now U.S. may remain out of it, but if delayed and conflict grows to larger proportions, U.S. almost certain to be drawn in; occupation of Rhineland may be desperation measure to increase Party prestige, which is at low ebb because of hopeless financial situation; fate of Austria entirely dependent upon external action; in speech at Karlsruh Hitler said occupation was only symbolic and that only 20,000 of Reichswehr had gone in; well known that occupying forces number at least 50,000.

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0671-00

Messersmith, G.S., Vienna. To Herbert Feis, Washington., 1936 March 20   [Box 6 F42]

Typed Letter Copy, 2 p.

Austro-Czech trade treaty completed and will be signed before end of month; details not yet made public, but Commercial Attaché has prepared report with such information as is available; planning to sail for home April 8, but events of last ten days may make it unwise to leave; Anglo-French agreement settles nothing, but may postpone explosion for a while.

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0672-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1936 March 20   [Box 6 F42]

Typed Letter Copy, 7 p.

Refortification of Rhineland major factor in London Conference negotiations; refortification of Western frontier main objective of Nazi Party and German Army; regime can count on Army support only as long as regime can keep armament program going; scarcity of foreign exchange and credits forcing regime to find new money through new taxes and capital levy, which will not be popular with already impoverished masses; Hitler calls for another "election" to give him vote of confidence; emphasis in campaign speeches on personal appeal, rather than Party accomplishments; France ready to take stand on Rhineland question, but England hesitant; after determined attitude on League and Italy, present attitude inexplainable; only England's realization of what failure to keep her Locarno pledge would mean, brought the agreement yesterday, which for the present, saves the situation; details of Anglo-French agreement not yet known, but probably include terms which Germany can accept without loss of face; English press, including Times and Daily Telegraph, not reporting objectively; correspondents have trouble getting stories published accurately; explanation must be pressure exerted by business and financial interests; now that crisis is temporarily over, still planning to sail from Hamburg April 8 and should be in Washington about April 16.

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0673-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 March 20   [Box 6 F42]

Typed Letter Copy, 2 p.

Sending clippings from London Times, which show that in spite of wobbly attitude of paper, Vienna correspondent able to get in some accurate and worthwhile information; [Norman] Ebbutt, Berlin correspondent for Times, suffered nervous breakdown and has gone to south of France; probably worried over way Times mutilated his stories; [Douglas] Reed, now in Vienna, to replace him.

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0674-00

Messersmith, G.S., Vienna. To William C. Bullitt, Moscow., 1936 March 26   [Box 6 F42]

Typed Letter Copy, 1 p.

Sending copies of memoranda of Mar. 9 and Mar. 20 and letters of Dec. 20, Jan. 25, Mar. 5, Mar. 13, and Mar. 20 to [James Clement] Dunn and [William] Phillips; memoranda and letters cover European situation and may be of interest to Bullitt.

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0675-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1936 March 27   [Box 6 F42]

Typed Letter Copy, 3 p.

In speech in Commons yesterday, [Anthony] Eden assured that England would maintain her Locarno obligations, but confidence in her not fully restored; cannot believe Germany will give way on matter of refortification of Rhineland, but British cling to hope that after election on Mar. 29, Hitler will concede the point; new group Mussolini formed of Italy, Austria, and Hungary may play important part in future developments; Mussolini now in stronger bargaining position, but doubts Italy's ability to play part given her by circumstances.

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0676-00

Memorandum on the present political situation in Germany and a foreshadowing of the future foreign policy., 1936 March 27   [Box 6 F42]

Typed Document Copy, 6 p.

German occupation of the Rhineland directed attention away from internal troubles; much tension among leaders and discontent among workers; Army pressing for incorporation of S.S. into regular army or regular police under Department of the Interior; leaders now realize economic recovery not possible without a measure of cooperation with outside world; Hitler now offers twenty-five year peace pact and a return to League of Nations, but would keep pact only until financial situation improves and Germany is fully rearmed; Hitler's long range plan unchanged; in Mar. 22 speech in Breslau he said "I went my way at home without compromise and I will do the same in foreign affairs"; German expansionist program envisages territorial aggrandizement supplemented by political hegemony; it seeks to incorporate into Reich German-speaking people now residing contiguous to but outside the German frontier, either by direct annexation or by revision of frontiers by agreement with contiguous state; first objective the incorporation of Austria into the Reich, then revision of Czech frontier; Poland will be next to receive attention; any resistance to be met with military force.

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0677-00

Memorandum., [1936 March]   [Box 6 F42]

Typed Document Copy, 8 p.

Despatch in which this memo was enclosed is missing. Main object of German occupation of Rhineland to give free hand later to South and Southeast; Germany's offer of twenty-five year peace pact merely cloak to hide real objective; wavering position of England inexplicable; confidence in League gone; League meeting transferred from Geneva to London but nothing accomplished; smaller powers apprehensive, particularly Austria and Czechoslovakia who are most threatened; Mussolini did not discourage German action and saw in it a way of diverting attention from his activities in Abyssinia; Hungarian and Austrian chiefs of state visited Rome on Mar. 19 and on 23rd signed three protocols extending Rome protocols of 1934; protocols contain no agreement of mutual military obligations; Austrians probably signed with misgivings, for fear of offending England, but England had already shown unwillingness to action, and France could not act alone; new Italian-Austrian-Hungarian bloc will not be welcomed in London and will cause concern in Paris; situation could yet be saved by reestablishment of Anglo-French front, and this front taking determined stand.

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0678-00

Memorandum of conversation between G.S. Messersmith and Vice-Chancellor Prince [Ernst von] Starhemberg., 1936 April 01   [Box 6 F42]

Typed Document Copy, 4 p.

Enclosed with No. 679. Called on Prince Starhemberg on March 31; Starhemberg felt Austria could depend on Mussolini's word that Italy stood ready to defend Austria's independence; he was optimistic that France and Italy would settle Abyssinian question outside the League; England would not like it, but would not be unhappy to see the matter settled; Prince could not understand English attitude; he had a very satisfactory visit to England on the occasion of the King's funeral and found the English statesmen friendly to his country, but on the whole, insular, with no understanding of the problems of countries on the Continent; nor could they understand problems of population pressure; even Churchill saw the solution in simply "having fewer children," which might be an English solution, but not a European one; asked the Prince whether he thought German intentions toward Austria had changed, and he replied that they had not and would not; Prince remarked that Messersmith probably did not approve of Austria's form of government; replied that he was here as an objective observer for U.S. Government and it was not his place to approve or disapprove of a purely internal matter; that Austria's government was probably best for Austria under present conditions; asked Prince what he thought of possible Rome-Berlin alliance; he replied that Mussolini had no intention of playing second fiddle to Hitler; called attention of Prince to certain trends which might prove dangerous if not repressed, specifically the trouble the Association of Photographers was causing the photographic division of the Associated press, and the attempt of certain manufacturers to bar foreign manufactured articles; such practices could damage Austria's foreign trade, for there might be reprisals; Prince said he would look into matter.

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0679-00

Messersmith, G.S., Vienna. Despatch No. 761 to Secretary of State [Cordell Hull], Washington., 1936 April 03   [Box 6 F42]

Typed Document Copy, 8 p.

Enclosure: See No. 678. Increase in anti-Jewish activity noticeable; universal compulsory military service established in Austria; trade treaty with Czechoslovakia signed on April 2, but details not yet published; leaving Vienna Apr. 4 to spend leave in U.S.; called on Vice-Chancellor Prince [Ernst von] Starhemberg and on Foreign Minister [Egon Berger-Waldenegg] yesterday; both concerned over European situation as it affects Austria; Foreign Minister stated that extension of Rome Protocols strengthens Austrian position; nothing new in protocols, but they represent a re-affirmation of the determination of Italy, Austria, and Hungary to cooperate with each other; Minister said Mussolini assured him that Italy would defend Austria's independence even if it meant going to war; commented on rumors that Rome was in constant touch with Berlin and possibility of alliance between them; Minister said Mussolini had no confidence in Hitler, but he was a realist and had to face situations as he found them; Mussolini's first interest now is clearing up situation in Abyssinia; Minister further stated that he considered general European situation critical and only determined action by Western powers could prevent a great war.

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0680-00

Address by G.S. Messersmith at Annual dinner of the American Society of International Law, Washington, D.C., 1936 April 25   [Box 6 F42]

Typed Document, 8 p.

Relations between countries and principles of international law based on necessity for mutual tolerance and respect among nations; to students of international law, Austria assumes an importance out of proportion to its size and population; gateway to Southeastern Europe, her geographic and strategic position make her of primary interest to her neighbors and all Europe; her boundaries were set by international agreements and her existence and welfare are therefore matters of concern to students of international law; Austrian cultural tradition remains unbroken; Vienna opera the finest in Europe; theatres continue to produce great plays; universities and museums draw students and visitors from all over the world; economists said that Austria could not live within the boundaries assigned to her, but her economy has slowly improved; has continued to meet service on all her foreign obligations; economic cooperation with other Danubian states desirable and a start has been made with the recent trade treaty between Austria and Czechoslovakia; many misconceptions about Austria's form of government and her leading statesmen; Chancellor [Kurt] Schuschnigg and Vice-Chancellor Prince [Ernst von] Starhemberg both ardent patriots; both keenly conscious that Austria's future is dependent on international agreements, international confidence, and international law.

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Items 0681-0692   [Box 6 F43]

0681-00

Address by G.S. Messersmith at annual dinner of the American Society of International Law., 1936 April 25   [Box 6 F43]

Typed Draft, 14 p.

In Messersmith's hand at top of first page, "Confidential, 4th draft - not delivered." Essentially same as above entry except for several paragraphs dealing with the loss of confidence in the sanctity and binding nature of treaties, alliances, agreements and the given word of nations, and the establishment of dictatorships and authoritarian governments in great states.

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0682-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1936 June 18   [Box 6 F43]

Typed Letter Copy, 36 p.

Sailed from New York May 20 on Manhattan; U.S. has need for larger merchant marine; U.S. losing passengers to foreign ships; legislation necessary to provide aid and remove impossible restrictions on ship construction; [James Barclay] Young and [Alan Stewart] Rogers carried on well work of legation; Young has good judgment and is highly esteemed in Vienna; Rogers did most of reporting with accuracy and perception; spent three days in London on way back; [Robert Worth] Bingham not there but talked with [Ray] Atherton, whose views were found justified; had talks with Lord [Waldorf] Astor, Jeffry Dawson, [Clement R.] Atlee, Sir Stafford Cripps and others; found England's policy still uncertain, but full agreement on rearmament; great difference of opinion on sanctions and Italy; so called pro-German attitude in England may reflect influence of King Edward and men like Astor, [Philip Henry Kerr, Marquess of] Lothian, [Charles Stewart, Marquess of] Londonderry, and [Henry George Charles Lascelles, Earl of] Harewood; failure of Germany to reply to British memorandum may open their eyes; went from London to Antwerp and Brussels and found Belgians pessimistic; they cannot understand British position and are turning more to France; Belgium has no illusions concerning Germany, but does not feel herself in immediate danger; [Paul] van Zeeland government has done good job; economic position better; [Léon] Degrelle received large vote in last election, mostly from Walloon district, and is known to be receiving support from Berlin; [Frans] van Cauwelaert standing up against him in spite of threats; in Paris, had long conversations with [Jesse Isador] Straus and [Edwin C.] Wilson; also talked with [Pierre] Vienot, Under Secretary for Foreign Affairs; Vienot spoke with frankness; he was interested in reaction of [Léon] Blum's speech on debts before American Club; he felt French debt policy had been unfortunate; he doubted France would move no matter what happened to Austria, but thought she would go to aid of Czechoslovakia; Vienot admitted strong movement in France for some form of cooperation with Germany; returned by train to Antwerp and from there to Berlin by auto; much evidence of German rearmament; in Berlin talked with [Ferdinand Lathrop] Mayer, [Joseph] Flack, and [Raymond H.] Geist and others who are in position to know what goes on; von Neurath strengthened, but found he is without power or influence, although not permitted to resign; Foreign Office reorganized, with political division headed by [Hans Heinrich] Dieckoff, economic by [Karl] Ritter, and legal by [Friedrich] Gauss; restraining influence of Army becoming less; [Hermann] Goering remains as Air Minister, [Werner] von Fritsch as Minister for Army, and [Erich] von Raeder Minister for Navy; Army had been opposed to occupation of Rhineland and gave orders that if French moved in German troops were to withdraw without resistance; great mistake of France and England not to take joint action at the time; reason for occupation and refortification of Rhineland to immobilize France on her frontier and give Germany free hand in other directions; no further aggressive action by Germany likely until after Olympics, though persecution of Church and Jews goes on unabated; [Hjalmar] Schacht busy in Southeast Europe; most Southeast European countries have favorable trade balance with Germany, but since payment is not forthcoming they are forced to buy from Germany, often goods they don't want; U.S. trade agreement program elestic enough to permit principle of certain preferences among Danubian states as long as privilege is shared with all major states, but Italy and Germany will not permit; [Raymond H.] Geist the best informed man in U.S. establishments in Germany; his tact, character, and courage make him tower of strength; spend one day in Prague after leaving Berlin; talked with Butler Wright and Orme Wilson, but Czech friends were away; Czechs realize seriousness of their position, but still think they can depend on French support and are working toward closer cooperation with other Southeast European countries; they do not under-estimate seriousness of [Konrad] Henlein movement; discussion in Austria as to whether recent conversations between Rome and Berlin began on German or Italian initiative; thinks initiated by Rome with object of bringing pressure on London and Paris; [Kurt] Schuschnigg believes there has been and will be no agreement between Rome and Berlin; Mussolini repeated to him assurances that Italy would stand by Austria, but indicated he would like to see better relations between Austria and Germany; Schuschnigg did talk to [Franz] von Papen but said no progress was made; Schuschnigg and [Ernst] von Starhemberg have reached truce, though von Starhemberg's position greatly reduced; von Starhemberg too much a patriot to cause civil strife to regain his position; Schuschnigg, aware of Anglo-French position and sensitive to weakness of promised Italian aid, realizes Austria is on her own, and may still have restoration of monarchy up his sleeve; present European situation not encouraging; nothing U.S. can do to improve situation except to refrain from giving aid of any kind to the dictatorships causing the disturbance.

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0683-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1936 June 20   [Box 6 F43]

Typed Letter Copy, 2 p.

Apologizes for length of preceding letter; returning to Vienna via London, Brussels, Paris, and Berlin was very helpful; promised President and Secretary to write them about trip; will appreciate copies of letter being sent to them with parts marked of special interest to them.

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0684-00

Memorandum of conversation between G.S. Messersmith and new Bulgarian Minister in Vienna, Mr. Parván Draganoff., 1936 June 22   [Box 6 F43]

Typed Document Copy, 6 p.

Enclosed with No. 685. Draganoff called on Messersmith on June 18, shortly after Messersmith's return from the U.S.; had been military attaché in Berlin while Messersmith was stationed there, but they had had no contact then; it was known, however, that Draganoff's relations with Hitler and Goering were friendly and that he was definitely pro-German; Draganoff said it was unfortunate that Austrian-German relations were not better, and asked what Messersmith knew of conversations recently between Rome and Berlin and Berlin and Vienna; Messersmith replied he had heard that Rome-Berlin talks had no concrete results and that Vienna-Berlin talks had reached a stand-still; Draganoff thought it unfortunate Austria couldn't reach a "modus vivende" with Germany; Messersmith said Austria was willing, if Germany would concede her her right to independence and non-interference in her internal affairs; Draganoff said [Franz] von Papen had assured him that Germany had made those concessions, but that Austria had raised further objections; Messersmith replied that he had information from an equally good Austrian source that no such concessions were made; Messersmith told of recent visit to English friends and his conviction that the present attitude of England is being misinterpreted; England aware of mistakes made at Versailles and does not want them perpetuated as they might be if she took precipitate action, but her lack of action now must not be considered as pro-German or anti-French, and certainly not as a sign of weakness; Germany's rapid rearmament known in England and elsewhere and England can arm herself even more rapidly because of easier access to materials; Draganoff said position of Bulgaria was very difficult for over 50 percent of Bulgaria's exports go to Germany; and this must affect her political orientation; Messersmith felt that economic cooperation was possible without political dependence; "taking sides" now merely aggravates situation.

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0685-00

Messersmith, G.S., Vienna. Despatch No. 811 to Secretary of State [Cordell Hull], Washington., 1936 June 26   [Box 6 F43]

Typed Document Copy, 1 p.

Enclosure: See No. 684. Transmitting memorandum of conversation with Bulgarian Minister in Vienna, [Parván Draganoff].

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0686-00

Messersmith, G.S., Vienna. To William Phillips, Washington., 1936 June 26   [Box 6 F43]

Typed Letter Copy, 7 p.

Calls attention to despatch no. 813 covering visits of [Hjalmar] Schacht to Vienna and other capitals; visits important if only as indication of policy; Schacht refused to comment on German foreign policy except in Belgrade, where he assured Yugoslavs Germany would stand behind them against Hapsburg restoration; in talks between Chancellor [Kurt] Schuschnigg and [Franz] von Papen, Schuschnigg listed in memorandum conditions under which modus vivende with Germany might be reached; von Papen left immediately for Berlin and talked with Hitler; has not heard result, but doubts von Papen brought back answer; [Hermann] Goering's brother-in-law, Franz Hueber, one of the leaders of so-called "nationally minded" Austrians, has made frequent trips to Germany, and in Austria has been having conversations with someone (not identified) in the confidence of the Chancellor; Goering anxious to reach agreement with Austria and willing to agree to Austrian conditions, as he believes this will ease situation in Germany's dealings with England and France, but probably will not sway Hitler; German-Italian conversations have broken down; debates on foreign policy in London and Paris encouraging; whatever their disagreements, they know they must cooperate; tone of English press now more favorable; Czechs putting through loan for defensive measures; [Konrad] Henlein forced into the open; one of his newspapers suppressed, and rifts apparent in his party; [Stanley] Baldwin made serious mistake in recent speech when he placed blame on U.S. for England's failure to impose oil sanctions on Italy; Germany's internal problems no easier; conversion loan of 700 million marks being put through, but will not relieve situation much, though for a while it puts off tax increase or capital levy; German industry leaning on short term revolving credits; U.S. and British interests participate in these; if they should be curtailed, Berlin government would soon be starved out; situation in Austria remains quiet; no trouble anticipated until after Olympics; many tourists.

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0687-00

Translation of article from Neues Wiener Abendblatt., 1936 June 30   [Box 6 F43]

Typed Document Copy, 1 p.

Enclosed with No. 689. Reports poor attendance at Heidelberg celebration; no English institutions represented and only few from U.S.; some had been present at conference which preceded celebration, but left demonstratively before celebration; absence of former American Ambassador to Germany Sherman [i.e. Jacob Gould Schurman] who refused day before celebration made painful impression; Rector of University appeared in S.A. uniform, Professor of War Science made peace speech addressed to foreign countries; altogether it was a Nazi event.

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0688-00

Messersmith, G.S., Vienna. To Cordell Hull, Washington., 1936 July 02   [Box 6 F43]

Typed Letter Copy, 14 p.

Learned of [Breckinridge] Long's stomach ulcer and operation; had same experience in 1919 and recovery was slow; hopes Long will take plenty of time, but will eventually return to the field; [William] Phillips a wise choice to replace Long, but he will be missed in Department; [Anthony] Eden went to Paris for conversation with [Yvon] Delbos; Little Entente at instigation of Yugoslavia requested them to halt rapid progress toward restoration in Austria; Chancellor [Kurt] Schuschnigg invited to come to Geneva during session on sanctions but Schuschnigg pleaded pressing duties at home; incident had effect of curbing move toward restoration without formal demands being made; French and English considering conversion of Austrian loans to lower interest rate; no progress in "modus vivende" between Germany and Austria, nor likely to be; some progress in Anglo-French cooperation; will be difficult to bring Italy into any concert with Paris and London, but still no basis for positive cooperation between Berlin and Rome; Nazi plans in progress to take over Danzig; split in [Konrad] Henlein's party in Czechoslovakia weakens his position; weather in Austria favorable for tourist trade; Nazi outrages, in form of stink bombs in public places, intended to discourage tourists; Chancellor informed [Franz] von Papen that if outrages continued there could be no further talks on improving relations with Germany, and immediately nuisance stopped; German commercial policy beyond comprehension; forcing economic bondage on Southeast Europe; trying same tactics in South America, but meeting resistance in Brazil; U.S. has tremendous investments in Germany but because of discriminatory measures cannot take earnings out to pay American investors; must use earnings in Germany to build new plants for manufacture of armaments; National Cash Register Co., International Telephone and Telegraph Co., and General Motors are examples; United Fruit Co., Gulf and Standard Oil Companies also having difficulty; Department should take such matters into consideration when German delegation in Washington talks of trade agreement.

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0689-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 July 03   [Box 6 F43]

Typed Letter Copy, 7 p.

Enclosure: See No. 687. Press reports about appointment of [William] Phillips to Rome not clear; gathers appointment temporary; supposes Phillips not averse to tour of duty in the field, but hopes he will return to Department where he has rendered tremendous service; according to press [Breckinridge] Long has resigned; hopes when he recovers from operation he will return to Service; Heidelberg celebration a fiasco; enclosing translation of article from Neues Wiener Abendblatt; Prof. [Joseph Alexander] Leighton, distinguished professor of Philosophy, recently spent several weeks in Germany, found situation in German universities so depressing he cut short his stay; Jews have finally been excluded from Berlin Rotary Club; will probably lead to exclusion of German Rotary from Rotary International, a further link with outside world cut off; death of [Bernhard Wilhelm von] Bülow came as surprise; comparatively young and apparently in good health until he caught pneumonia; not a Nazi, but ardently pan-German, a hard man difficult to deal with, his passing will make little difference in Foreign Office; some probability that [Hans Heinrich] Dieckoff will replace him; has heard [Ludwig] Grauert to retire from Ministry of Interior; Grauert only half Nazi but devoted to [Hermann] Goering; enjoying delightful weather, and garden at residence is relief; convinced purchase of residence was wise move.

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0690-00

Dunn, James Clement, Washington. To G.S. Messersmith, Vienna., 1936 July 06   [Box 6 F43]

Typed Letter Signed, 1 p.

Glad to hear of successful trip; will be interested in reading Messersmith's letter to [William] Phillips and learning of his impressions.

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0691-00

Messersmith, G.S., Vienna. To Cordell Hull, Washington., 1936 July 08   [Box 6 F43]

Typed Letter Copy, 13 p.

Major developments in Austro-German relations expected soon; Hitler now reported to have said he will accept Austria's conditions - German recognition of Austria's independence and non-interference in her internal affairs - as basis for modus vivende, and will make public statement to that effect; [Kurt] Schuschnigg says he will enter into no agreement with Germany without first conferring with Mussolini, but Mussolini likely to be agreeable; Germany wishes to make sure of English and Italian neutrality if not their support, and must revise her program, but her ultimate aims remain unchanged; now trying to force plebiscite in Danzig to increase Nazi control; French-English démarche in Berlin on Danzig shows Germany in that direction too she must soft-pedal.

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0692-00

Messersmith, G.S., Vienna. To [Felix] Frankfurter, [London]., 1936 July 09   [Box 6 F43]

Typed Letter Copy, 4 p.

Has heard Frankfurter is in England and can be reached through the Embassy; Austro-German agreement under consideration; Austria will make no concessions; now believed in official circles that Germany will make declaration on Austrian independence and non-immixtion, without concessions from Austria; German objectives unchanged; agreement with Austria would neutralize Italy and pave way for closer cooperation between Rome and Berlin, mollify England, and weaken French position, leaving Germany free for expansion to the Northeast; agreement will be hailed by many as indication of peace, but it only puts off a conflict which is inevitable.

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Items 0693-0707   [Box 6 F44]

0693-00

Messersmith, G.S., Vienna. To Cordell Hull, Washington., 1936 July 12   [Box 6 F44]

Typed Letter Copy, 7 p.

Austro-German agreement announced July 11; Chancellor agreed to bring into Cabinet several so-called "nationally-minded" Austrians, but they are friends upon whom he feels he can depend; [Eduard] Glaise-Horstenau to be liaison between nationally-minded elements and National Socialists in effort to bring them behind government; Guido Schmidt to be Secretary of State for Foreign Affairs; Secretary General at Foreign Office has little confidence that Germans would carry through their agreement and made it only to better their position with England; details of agreement will be difficult to work out, particularly amnesty for Austrian Nazis; was assured by Secretary General Nazi ideology would not be tolerated in Austria and there would be no discrimination against Jews; restoration question now in background; Chancellor has done his best to safeguard Austrian position; agreement doesn't mean Austria has cast her lot with Germany and Italy, but she must cooperate with both; reason for German action will be understood in both England and France; Czech Chargé in Vienna believes Austro-German agreement relieves pressure on Czechoslovakia, but relief will be only temporary; Austro-Czech treaty now scheduled to go into effect Aug.1 but with many items which Germany objected to cut out; sees difficulties for U.S. trade agreement program.

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0694-00

Dunn, James Clement, Washington. To G.S. Messersmith, Vienna., 1936 July 14   [Box 6 F44]

Typed Letter Signed, 2 p.

Acknowledges letters of June 18 and 26; letter about trip back to Vienna very interesting; interested in details of [Hjalmar] Schacht's visits to Southern Europe and in conversations between [Franz] von Papen and [Kurt] Schuschnigg; Berlin-Vienna arrangement announced; skeptical about way it will be carried out, but should remove Austrian question from forefront for at least a few months; leaving today for vacation.

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0695-00

Morlock, George A., Washington. To G.S. Messersmith, Vienna., 1936 July 15   [Box 6 F44]

Typed Letter Signed, 1 p.

Acknowledges Messersmith's letter of July 3 to [James Clement] Dunn and copy of letter to [Cordell]Hull; Dunn not in Washington but will forward letters to him.

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0696-00

[McBride], Harry [Alexander], Washington. To G.S. Messersmith, Vienna., 1936 July 15   [Box 6 F44]

Typed Letter Signed "Harry", 2 p.

Grateful for Messersmith's letter and kind remarks regarding return to Service; will remain for the present [as assistant to Secretary of State] but may return to the field later; sorry Messersmith's stay in America was so short; letters to [William] Phillips and Secretary received;interesting developments in Messersmith's part of the world; things going well in Washington except for heat wave.

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0697-00

Hull, Cordell, Washington. To G.S. Messersmith, Vienna., 1936 July 17   [Box 6 F44]

Typed Letter Signed, 1 p.

Has been interested in letters touching conditions in Austria; awaiting next communication giving analysis of facts and conditions bearing on German-Austrian arrangement.

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0698-00

Messersmith, G.S., Vienna. To James Clement, 1936 July 20   [Box 6 F44]

Typed Letter Copy, 3 p.

Dunn, Washington. Acknowledges note of July 7 regarding Esperanto Congress; will be in Salzburg on day Congress opens, but has asked [James Barclay] Young to attend opening meeting; glad [William] Phillips to have a month off before he goes to Rome; regrets he will be leaving Department; does not wish to appear stingy about telegraphing Department, but feels he got preliminary information to Department before Austro-German agreement was signed; no one knows what will happen; the major powers and even the dictators don't know, but the trends are clear; Austro-German agreement may mean that for perhaps a year Germany will make no overt move against Austria, but the process of undermining her sovereignty will go on; has made study of some German textbooks; forces being unleashed which endanger all Europe; having many visitors from U.S., which pleases us but keeps us busy; sending clippings from London Times; does not accept Times as authority and disagrees with some of its editorials, but items from Vienna and Berlin correspondents good.

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0699-00

Messersmith, G.S., Vienna. To Cordell Hull, Washington., 1936 July 20   [Box 6 F44]

Typed Letter Copy, 7 p.

Reviewed latest developments in Austro-German agreement in despatch no. 832 of July 17; erred in letters of July 2 and 8 by expressing opinion that agreement might not be reached because Hitler at last minute would not accept Austria's conditions; reports from Germany indicate it was hard pill for him to swallow; too early yet to speak of German-Italian bloc in which Austria and Hungary are incorporated, but more active cooperation between Italy and Germany is indicated; and way is open to same alignment which existed in 1914; arguments against such alignment are that Germany and Italy have conflicting interests and Mussolini and Hitler both dislike and distrust each other; both Italy and Germany want to gain time to strengthen their negotiating positions; Italy principally interested in financial assistance from France, England,or U.S., and Germany interested in neutralizing England and Italy and isolating France, while she continues her rearmament program; neither Italy nor Germany wants to see Locarno meeting scheduled soon, for they fear alignment against them; on surface it appears activity against Jews in Germany has relaxed, but it goes on with the difference that little is said or printed about it; action against church has abated for time being; this is only seeming more conservative attitude, which is necessary to achieve Hitler's major aim, which is domination of Europe; details of Austro-German agreement being worked out; first step is amnesty which may be proclaimed within week; Germany's next action planned for northeast, probably in direction of Danzig; English position continues difficult, and she may alienate sympathy where she can ill afford to lose it; [Franz] von Papen taking credit for Austro-German agreement, and will probably be rewarded, but he was actually only a messenger boy.

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0700-00

Messersmith, G.S., Vienna. To Mrs. Sinclair Lewis, New York City., 1936 July 21   [Box 6 F44]

Typed Letter Copy, 7 p.

Acknowledges telegram requesting information on Rumanian railway between Czechoslovakia and Russia and the meaning of the Austro-German agreement; letter amplifies cabled reply sent earlier through Herald-Tribune correspondent in Vienna; does not know just where connecting link [of railway line] will run; Rumanian government denies permission has been given for building the strip, but denial means nothing; Austria's major conditions, independence and non-immixtion, were met in the Austro-German agreement; Schuschnigg blamed by some for making the agreement, but he could do nothing else; agreement gives to Germany negotiating position with France and England, neutralizes Italy considerably; German objectives remain the same, and no faith can be placed in her agreements; League [of Nations] no longer influence to promote or enforce peace; battle for peace not yet lost, but prospects not good.

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0701-00

Hull, Cordell, Washington. To G.S. Messersmith, Vienna., 1936 July 29   [Box 6 F44]

Typed Letter Signed, 1 p.

Received letter of July 12 regarding Austro-German agreement; information it contained of much interest.

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0702-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 July 31   [Box 6 F44]

Typed Letter Copy, 2 p.

Enclosing copy of letter to Secretary which, with despatches going by this pouch will give picture of situation here; enclosing clippings from London Times which should be of interest to Dunn and [Rudolf Emil] Schoenfeld; decision of Italy and Germany to go to Locarno meeting may be announced any time; Spanish troubles a real complication; England and France would prefer Government to win out, while Germany and Italy favor revolutionary parties; glad Dunn is getting holiday; hopes visit to clinic means nothing serious.

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0703-00

Messersmith, G.S., Vienna. To the Secretary of State [Cordell Hull], Washington., 1936 July 31   [Box 6 F44]

Typed Letter Copy, 17 p.

Amnesty granted political prisoners included many Socialists as well as National Socialists; negotiations underway to improve commercial relations with Germany; any commercial arrangement likely to be disappointing to Austria; Germany willing to take Austria's wood and cattle but wants to pay for them with goods Austria doesn't want; rumors that Austro-German accord has secret clauses, but thinks these rumors not founded on fact; disturbance took place July 29 when Olympic flame was carried through Vienna on way to Berlin, caused by well-organized groups of Nazis; government took immediate action and 500 to 700 were arrested; since accord of July 11 some uncertainty as to stand government would take, but should be no uncertainty now; doubts disturbances incited by Berlin, though [Josef] Goebbels agents known to be in Austria; visited Countess [Muriel] Seherr-Thoss recently at her summer place in Carinthia; was riding with her in her car, which had German license plate, when approached by two youths who jerked open car door and demanded offensively, "where is your Hakenkreuz?" typifies kind of people who make trouble in Austria; persistent rumors during past that Chancellor would resign, that he will marry again,and that there is to be complete cabinet reorganization and new cabinet will be Nazi; Chancellor may marry but other rumors can be discounted; [Franz] von Papen disappointed; was given personal rank of Ambassador in charge of German Legation in Austria, but he wanted to be sent to London; Italians had to show what a great part they played in negotiations leading to Austro-German accord, and have given the Italian Minister to Austria, [Gabriele] Preziosi, Ambassadorship to Belgium; few tears will be shed at his leaving Vienna; Germans want Olympic Games and September Party meeting out of way before Locarno meeting and are endeavoring to push that meeting into October; efforts of German diplomacy will be directed toward isolation of Russia; Germany feels Japan will be on her side; Hitler is being advised by best German authorities that he cannot yet undertake war with a major power; well known German reported Germany not interested in Central European bloc as it would be based on Germany, Italy, and other weaker countries without money, credit, raw materials, or control of the seas; British position now more reassuring; friend reported [Sir Samuel] Hoare had made it clear that England would try to arrive at solution by negotiation, but had no illusions and intended to accelerate armament program; dictators dangerous wherever found, and there can be no enduring peace as long as they exist; situation in Spain presents threat; sympathies of Italy and Germany with the revolutionary forces while those of England and France are with the Government; democratic governments exercise restraint about actively taking sides, but very poorly concealed aid has been given by Italy to the revolutionary forces, for which a Franco government must pay a price - probably a naval and air base in Majorca; thinks now one can expect new evidences of Italo-German cooperation; in Austria, National Socialist activities bound to increase, and the "nationally minded" elements, growing in strength and gaining influence in government; possible that Chancellor may be engulfed by forces Austro-German accord set in motion, but he will make valiant effort.

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0704-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 August 01   [Box 6 F44]

Typed Letter Copy, 1 p.

Sending copy of "Illustrirte Zeitung" for July 23; note pictures of [Hermann] Goering's new Air Ministry; pictures, give excellent impression of enormous establishment.

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0705-00

Hull, Cordell, Washington. To G.S. Messersmith, Vienna., 1936 August 01   [Box 6 F44]

Typed Letter Signed, 1 p.

Pleased to have Messersmith's letter of July 20 summing up fundamentals of European situation.

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0706-00

Messersmith, G.S., Vienna. To Hamilton Fish Armstrong, New York., 1936 August 04   [Box 6 F44]

Typed Letter Copy, 8 p.

Stopped in London, Brussels, Paris, Berlin, and Prague on way back to Vienna; outlook discouraging; obvious that England and France would not move in case of German aggression against Austria, but other conditions made aggression by Germany unwise at present; countries of central and Southeastern Europe realize since occupation of Rhineland they are on their own, and are taking measures; German economic penetration in Southeast Europe will inevitably mean political domination; Austrian Chancellor conferred with Mussolini and was told Italy would favor Austrian-German accord if it could be reached on Austrian conditions of independence and non-immixtion; [Kurt] Schuschnigg forced to accept, but didn't believe Hitler would agree to conditions; Schuschnigg knew restoration now out of the question, with Germany so definitely opposed; Hitler agreed to conditions and accord announced July 11; many blame Schuschnigg for making accord,but he could do nothing else; Austrian people do not want Anschluss, but they do want friendly relations with Germany for economic reasons; Mussolini had urged it, and although France and England not happy about it, they would have been first to call Schuschnigg a disturber of the peace if he had refused the accord with the conditions met; no one has illusions that Germany will keep the agreement, but it does relieve tensions for all concerned for the present; feared more Nazi activity in Austria as result of accord and on July 29 when Olympic Torch passed through Vienna there was a disturbance created by organized Nazi groups, but government took prompt action; Spanish situation may have repercussions over Europe; another Fascist government will make conditions more difficult; Locarno talks postponed to October; Germany wants Olympic Games and September Party meeting out of the way; Fascist government in Spain will mean more active cooperation between Germany and Italy, with probability of concession of naval and air bases in Mallorca, which would be embarrassing to France and England; Hungarians keeping quiet; they are largely pro-German and think they will gain more through German supremacy; Yugoslavs unhappy about economic situation, but pleased that Austro-German accord places restoration out of the question; Rumania marking time, but German economic penetration already there; Czechs in precarious position; France will not or cannot help them at present, and any temporary relief they get from Germany will cost them their alliance with Russia; Austrians now in Berlin negotiating trade relations, but they will de disappointed; Germany willing to take Austrian products, but not willing to give up any foreign exchange; wise Germans have made every attempt to convince Hitler he cannot wage successful war now, but not sure whether his strange mentality has grasped it; hopes if Armstrong comes to Europe he will have Vienna on his itinerary.

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0707-00

Phillips, William, Washington. To G.S. Messersmith, Vienna., 1936 August 05   [Box 6 F44]

Typed Letter Signed, 2 p.

Has returned from leave and read accumulation of Messersmith's interesting letters; extraordinary situation developing in Spain; principal concern now getting Americans out of danger zone; has been lucky so far, but many refuse to come, and if anything unfortunate happens to them, U.S. is in for trouble; back on job while Secretary is on leave, but when he returns, will prepare to sail; after becoming established in Italy, would like to drop in on Messersmith in Vienna; will make work in Rome more vivid to have Austrian perspective.

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Items 0708-0723   [Box 7 F45]

0708-00

Messersmith, G.S., Vienna. Despatch No. 856 to Secretary of State [Cordell Hull], Washington., 1936 August 10   [Box 7 F45]

Typed Document Copy, 6 p.

Dr. Rost van Tonningen has resigned as League of Nations financial adviser in Austria, stating that the present soundness of Austrian economy made his trusteeship superfluous, and that his services are needed in his native Holland; personal considerations may have affected his decision; van Tonningen had been close personal friend of Chancellor Dollfuss and had exerted a measure of political influence; after death of Dollfuss, he did not enjoy the same influence, Chancellor Schuschnigg being known for keeping his own counsel and rarely asking advice; following Italy's flouting of the League in the matter of Abyssinia and getting her own way, League prestige had dwindled in Austria; van Tonningen ambitious, positive, and accustomed to having his own way; a known Fascist, he makes no secret of his plans to form a Fascist party in Holland.

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0709-00

Messersmith, G.S., Vienna. Despatch No. 857 to Secretary of State [Cordell Hull], Washington., 1936 August 10   [Box 7 F45]

Typed Document Copy, 6 p.

Nazi demonstration in Vienna on evening of July 29 when Olympic flame kindled in Greece, was passing through on its way to inaugurate Olympic games in Berlin; 700 persons arrested, many of them Austrian Nazis recently released under terms of amnesty of July 22; Germany disclaims responsibility for demonstration, but no doubt it was German inspired; many of the demonstrators were paid by sources believed to be from over the frontier; mass meeting of Popular Front held on July 31 to protest demonstration; Chancellor Schuschnigg in speech on July 30 made clear his intentions toward future Nazi subversive activities; Chancellor went next day across border into Italy for visit with son; King Edward of England passed through Austria yesterday to join his chartered yacht at a Yugoslav port; ex-King Alfonso of Spain is staying at Imperial Hotel in Vienna; he cannot at present stay in Italy or Germany while Fascist putsch is underway to restore his throne.

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0710-00

Messersmith, G.S., Vienna. To the Secretary of State [Cordell Hull], Washington., 1936 August 14   [Box 7 F45]

Typed Letter Copy, 11 p.

Attended Music Festival at Salzburg during last weekend; saw premiere of Die Meistersinger in which Charles Kullman of New Haven sang leading role; America should be proud of him; many notables from all over world present, including distinguished Americans; Miss [Frances] Perkins arriving today and Mr. and Mrs. [Wilbur J.] Carr; was fortunate in securing good seats for them; tourist season best since end of war; will mean great increase in foreign exchange holdings; August a quiet month in Austria politically; Chancellor and most of ministers vacationing; preliminary negotiations for improving Austro-German trade relations have come to nothing, but pressure from Germany will continue and may affect U.S. interests; Germans would like to have contingents put on American goods to provide increase in German exports; Chancellor's retirement still rumored, but nothing to rumor; with [Ernst von] Starhemberg out of picture Germany will make effort to undermine position of Chancellor; regrets in some ways Starhemberg's passing from picture; not as bad as he has been painted, but he is a Fascist; likely to be changes in Cabinet; [Fritz] Stockinger, Minister of Commerce, and [Ludwig] Draxler, Minister of Finance , slated to go; both able men, but reported to have sticky fingers; will probably be replaced by some of the nationally minded element; internal situation such that opinion unjustified that accord of July 11 handed Austria over to Germany; [Franz] von Papen since elevation to Ambassador, pressing to assume first place in diplomatic corps in Austria; Foreign Office may be forced to give him precedence; [James] Haislip plane, which he sold or turned over to Cathcart Jones [John Owen Cathcart ?], former British Air Officer, stopped at Innsbruck and held by Austrians until instructions are received from Department about present ownership; plane was carrying some of Alfonso's aides interested in arms traffic; [Joachim von] Ribbentrop reappointed to London; London Times speaks kindly of his appointment, but makes clear that British-French friendship remains fundamental and no arrangement with Germany can disturb it; organization of German Foreign Affairs strange; [Konstantin] von Neurath remains Foreign Minister but has little authority; Ribbentrop maintains political bureau in Berlin; [Alfred] Rosenberg's foreign political office of Nazi Party, [E. Wilhelm] Bohle's Nazi Party organization for influencing opinion abroad, and Propaganda Ministry of [Josef] Goebbels all striving to direct foreign policy; visit of [Baron Robert Gilbert] Vansittart, permanent Undersecretary in London, to Berlin worthwhile; Vansittart has no illusions and maintains proper perspective of German situation; events in Spain diverting attention from Danzig, but suggests watching that spot, where coordination with Reich is to be brought about through expression of "popular will"; Olympic Games will doubtless be reported great success by Americans returning from Germany; organization was excellent, enormous stadium in fine setting, and the Games themselves a great spectacle, but these Americans see only the surface; financially, the Games a failure for Germany; not as many foreign visitors as expected; foreign control over Austrian financial institutions about to end; on death of head of Creditanstalt, International Committee in London agreed to appointment of principal Austrian subordinate.

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0711-00

Messersmith, G.S., Vienna. To the Secretary of State [Cordell Hull], Washington., 1936 August 21   [Box 7 F45]

Typed Letter Copy, 13 p.

Enclosed with No. 712. Chancellor struggles against German pressure; talked with Dr. Wildner, who headed Austrian delegation to Berlin for commercial talks; he reported Germans wanted everything, but not prepared to give anything; definite negotiations for trade treaty to begin end of September, but Wildner gloomy; he knew German pressure would be greater; Rost van Tonningen, League Financial Committee representative in Austria, has resigned; doubts he will be replaced; likely that all foreign control over Austrian finances will soon be removed; removal of all foreign control may weaken Austrian resistance to German economic pressure; van Tonningen reported to be returning to Holland to head Fascist party; he has written to National Socialist leader in Holland to offer his services; should keep eye on developments in Holland and Belgium; Hungarian regent [Nicolas] Horthy [de Nagybanya] in Austria on hunting trip on estate of Count [Stephen] Festetics in Tyrol near Berchtesgaden; has been informed shooting trip is blind, that Horthy plans to slip over border and call on Hitler; it is thought he will tell Hitler that although Hungarian sympathies are with Germany, in case German action provokes war, dependence on Hungary must not be taken for granted; Germany's plan to absorb Austria continues; rumor and insinuation are having their effect; pressure of 68 million against 6 1/2 cannot be ineffective; German progress in accomplishing her objects has been continuous; reparations forgotten, Saar reincorporated into Germany, Rhineland occupied and being fortified, fortification of Helgoland in progress, League weakened, Danzig being brought into Reich, Little Entente disintegrating; Czechoslovakia practically standing alone; German policy, aided by Italy, directed against Franco-Belgian military agreement and Franco-Polish agreement, Austro-Italian agreement and Rome Protocols shaky; Germany still has hopes of separating France and England; [Eugenio] Morreale, in recently published article, says National Socialism in Austria, since accord of July 11, is now a national rather than international question and no longer the concern of Italy, thus indicating a decreasing interest by Italy in Austria; a few bright spots; English rearmament progressing rapidly; French military position still strong; Germany seems convinced now she is not yet prepared for war; King [Edward] of England visiting in Yugoslavian waters; visit may have political significance; President's recent Chataugua speech [on peace] a great one.

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0712-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 August 24   [Box 7 F45]

Typed Letter Copy, 5 p.

Enclosure: See No. 711. Enclosing copy of Aug. 21 letter to Secretary; [Nicolas] Horthy [de Nagybanya] arrived Vienna Aug. 21, called on Chancellor, and went on to Tyrol; his route passed through German territory [near Berchtesgaden] and there's little doubt that he saw Hitler; Hungary dissatisfied with secondary role she plays; rumored that Mussolini as well as Hitler was to meet Horthy, but doubts that; hand of [Franz] von Papen seen in this; he may have encouraged Horthy to seek interview with Hitler; today's papers announce Rost van Tonningen has accepted editorship of National Socialist daily newspaper in Holland; sending two clippings from London Times; clipping about [Konrad] Henlein shows that although his position in Czechoslovakia has weakened, his international position is stronger; at recent dinner given by Hitler, he was invited and Czech Minister to Germany wasn't; situation in Spain causing jitters all over Europe; English more bothered over activity of German Navy.

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0713-00

Hull, Cordell, Washington. To G.S. Messersmith, Vienna., 1936 August 26   [Box 7 F45]

Typed Letter Signed, 1 p.

Is indebted to Messersmith for last two letters, containing elaborate, timely and valuable comment; is carefully studying each.

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0714-00

Messersmith, G.S., Vienna. To Secretary of State [Cordell] Hull., 1936 August 28   [Box 7 F45]

Typed Letter Copy, 9 p.

Does not know substance of conversation [Nicolas] Horthy de Nagybanya had with Hitler, but has learned [Franz] von Papen arranged visit with object of forcing Austria into Vienna-Budapest-Berlin combination; Hungary unhappy over her inactive role and disappointed that her revisionist aspirations were receiving no attention; health of Hungarian Premier [Julius] Goemboes poor and Regent Horthy has had to take more active part in government; Horthy being pressed by legitimists for restoration in Hungary, but he does not want to lose job as Regent and he sees in closely knit Budapest-Vienna-Berlin a strengthening position against restoration; meeting of Little Entente in September will concern itself with Austro-German accord and implications for Little Entente; von Papen an intriguer; he saw fertile field in Hungary for open manifestation of Hungarian friendship for Germany and hoped this would be lever forcing [Kurt] Schuschnigg to cooperate more closely with Berlin; von Papen has been urging Schuschnigg to meet Hitler, but Schuschnigg has so far wisely refused; Schuschnigg determined to have his hands free, and has the support of President [Wilhelm] Miklas and most Austrian people; Yugoslavs disturbed over Horthy visit and see it as threat to Little Entente; Germany hopes to swallow all of Southeastern Europe, but will find it an indigestible meal, for what pleases one country displeases another; Chancellor back from holiday and rested, but disillusioned and disgusted; if right kind of successor were available, believes he would be happy to retire; German influence bound to increase; English jitters increase as Germany announces two-year military service; has been informed British placing large orders in U.S. for armaments; British attitude seems to be stiffening; should have good effects; German barrage of misinformation and misrepresentation continues; they now place responsibility on Russia for the two-year military service; Mr. and Mrs. [Wilbur J.] Carr now in Vienna; both looking rested and fit.

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0715-00

Messersmith, G.S., Vienna. To Secretary of State Cordell Hull, Washington., 1936 September 10   [Box 7 F45]

Typed Letter Copy, 9 p.

Austria enjoying profitable tourist season; hotels full; among distinguished visitors are King of Belgium and King of England; Germany starting new offensive against Communism; object to break up Soviet pacts with Czechoslovakia and France, to isolate Russia and weaken France; Germany eases persecution of church in return for Vatican support in drive against Communism.

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0716-00

Messersmith, G.S., Vienna. Despatch No. 894 to Secretary of State [Cordell Hull], Washington., 1936 September 10   [Box 7 F45]

Typed Document Copy, 2 p.

Enclosure: See No. 728. Transmitting memorandum covering certain aspects of the situation in various countries of Europe in 1914 and 1936.

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0717-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 September 11   [Box 7 F45]

Typed Letter Copy, 2 p.

Sending copy of letter of Sept. 10 to Secretary re new German drive against Communism and reported agreement between Berlin and Vatican; Cardinal [Eugenio] Pacelli thought to be going to Berlin to conclude arrangements; understands Vatican's concern over German Church, but doubts new agreement will help any more than old concordat; sending clippings from London Times concerning church matter, financial failure of Olympic Games, and Nuremberg Party meeting.

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0718-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 September 15   [Box 7 F45]

Typed Letter Copy, 5 p.

Influx of royal visits during extraordinary tourist season; 31 million schillings in foreign exchange received during August alone; royal visitors include King of Belgium, King of Spain, Prince Paul of Yugoslavia, Duke of Kent, Italian Crown Prince and his wife, and King of England; King of England's visit was an informal holiday, although he did call on President and Chancellor; he came with small entourage, including Mrs. Simpson, wandered about streets with Mrs. Simpson, visted museums, dined in public restaurants, attended opera, played golf and hunted with British Minister; wherever he went his privacy was respected; no political objective in visit, but may have good consequences.

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0719-00

Messersmith, G.S., Vienna. Despatch No. 902 to Secretary of State [Cordell Hull], Washington., 1936 September 15   [Box 7 F45]

Typed Document Copy, 12 p.

Comments on effects on European situation of Austro-German accord of July 11, 1936; Chancellor has so far held to "Dollfuss Line"; negotiations to improve trade relations between Germany and Austria have come to nothing, but will continue; Germany lifted the 1000 mark visa fee; has not had expected results; no more German tourists in Austria than previously; some had feared an influx of Nazis and increased Nazi propaganda, but fears unrealized; comments in German press following accord showed it did not consider recognition of Austrian independence a permanent thing; belief in some quarters Nazis would be brought into Austrian Cabinet, but so far no indication of such reorganization; Austria intends to continue her independent foreign policy; will not sever connections with League of Nations; will also maintain friendly relations with other Central and Southeastern European countries and with Italy, among which countries there has been a recent exchange of official visits; Chancellor[Schuschnigg] in recent speech before Pan-European Agricultural Congress, made clear Austria's intention to pursue a "middle course" and to cooperate as far as possible economically and politically with other European countries; in talking with a group of intimates confidentially, Chancellor said that in event of war, Austria would hope to maintain a neutral position; Little Entente not in the Moribund condition reported in earlier dispatch; increased German armament program and Franco-Polish accord have strengthened it; in past, Italy has shown no interest in independence of Czechoslovakia but recent German pressure against Czechs brought Italy to realization that disintegration of Czechoslovakia would weaken her own position.

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0720-00

Messersmith, G.S., Vienna. To Secretary of State [Cordell] Hull., 1936 September 18   [Box 7 F45]

Typed Letter Copy, 7 p.

Since occupation of Rhineland, most German objectives lie beyond her frontiers, where she is meeting greater difficulties; Berlin recognizes balance of power still against her and dangers of war still too great for Germany; has the result of slowing things up for her, but does not change basic situation; offensive against Russia and Communism has fallen flat; London Times editorial says England will not be drawn into ideological controversy; Pope, in speech to Spanish refugees, was as strongly critical of Fascism as of Communism; Vatican now realizes dangers of bargain with Berlin; speeches of [Yvon] Delbos and [Léon] Blum have made clear that France will take no part in war for ideas and doctrines and will hold to Franco-Soviet pact; Little Entente, meeting at Bratislava, shows greater spirit of cooperation and more resistance to pressures from Germany; Yugoslavia and Rumania affirm they will not join any bloc directed against France or Russia; disintegration of Little Entente seems arrested; cooperation between Rome and Berlin continues, but Italian participation in offensive against Russia and Communism only half-hearted; Foreign Ministers of Italy, Hungary, and Austria meeting in Vienna soon; Austria will resist all efforts to bring it into any bloc; Chancellor wishes to secure for Austria neutral position similar to Switzerland; no improvement in German economic situation; her four-year plan to become self-supporting the height of folly; its object to blackmail England, France, and U.S. into giving Germany credits, markets, and raw materials; Hitler now obsessed with disintegration of Czechoslovakia and necessity of getting Ukraine; social movement in Germany continues unabated with radical element still in control; compliments Hull on address before Good Neighbors League in New York.

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0721-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 September 18   [Box 7 F45]

Typed Letter Copy, 3 p.

Sending copy of Sept. 18 letter to Secretary; enclosing clippings from London Times which may be of interest to Dunn and [Rudolf Emil] Schoenfeld; British interest in Southeastern Europe again keen; important Englishmen coming to Vienna to observe situation; English disturbed over German demand for colonies; pressure cannot be ignored; English agree something should be done about it, but concerned about how it should be done and possible effects; thinks giving colonies to Germany while present regime is in power would be mistake; only steps to be taken for preserving peace are (1) prevent formation of hostile blocs (2) keep balance of armaments against Germany and (3) maintain economic pressure against her.

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0722-00

Hull, Cordell, Washington. To G.S. Messersmith, Vienna., 1936 September 22   [Box 7 F45]

Typed Letter Signed, 1 p.

Acknowledges letter of Aug. 28; information interesting; has made it available to associates in Department.

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0723-00

Dunn, James C[lement], Washington. To G.S. Messersmith, Vienna., 1936 September 23   [Box 7 F45]

Typed Letter Signed, 2 p.

Just returned from vacation and read copies of Messersmith's letters to Secretary; interested in Austro-German agreement; looking forward to Messersmith's further comments; had good rest and feeling fit.

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0723-01

G.S. Messersmith, Vienna. To Mrs. Dorothy Thompson Lewis, Vermont., 1936 September 23   [Box 7 F45]

Typed Letter , 6 p.

Acknowledges letters of August 14 and 15. Describes circumstances of Colonel Lindberg[sic]'s visit to the Olympic games. Believes that LIndberg's [sic] having tea with Crown Prince is reason for Hitler> not receiving him in Berlin.

Situation has improved only in the postponement of the real probability of war in the near future. Elements of eventual explosion are still present.

Several factors effecting this change: Germany realizes that the balance of power is not at present in her favor. Countries of the Little Entente aroused by the speed of Germany's economic penetration-their resistance stiffened. The unresolved opposition of intersets between Rome and Berlin. Lack of success in making use of the Vatican's hatred of Communism.

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Items 0724-0732   [Box 7 F46]

0724-00

Messersmith, G.S., Vienna. Despatch No. 914 to Secretary of State [Cordell Hull], Washington., 1936 September 24   [Box 7 F46]

Typed Document Copy, 11 p.

Internal situation of Austria quiet; meeting of Little Entente states in Bratislava; economic pressure from Germany no doubt strengthened ties of Little Entente; Austrian Secretary of State for Foreign Affairs, Dr. [Guido] Schmidt went to Rome, ostensibly on routine visit but primarily for purpose of determining what attitude should be taken as consequence of Bratislava meeting; Schmidt has again emphasized importance of Rome Protocols, states that they do not form a bloc, but are open to others, and mentions importance of economic cooperation of all Southeast European states; conference of Foreign Ministers of Rome Protocol states to be held in Vienna in late October; Hungarian Government not opposed to conference, but wants it held in Budapest; Italy and Austria fear pro-German influence in Budapest; economic and political objectives of Germany and Italy fundamentally opposite, in spite of apparent cooperation between them; Germany trying to stimulate discord among Southeast European states; if there is to be cooperation among them, she wants it under her guidance and domination; German Foreign Minister Baron [Konstantin] von Neurath in Budapest and will try to sabotage Vienna meeting, or delay it as long as possible; Hungary has been veering between Italy and Germany for several years, but has lately leaned more toward Germany; Southeast Europe a natural economic hinterland for Germany, who can consume more of their agricultural products which they have for export than any other country, and no durable arrangement for economic cooperation among them can be made without German participation; Austria recognizes this fact, which places her in difficult position; she does not wish to take attitude against Germany, but realizes Italian aid is only external aid upon which she can depend; situation further complicated for Austria by her vote at Geneva against admission of Abyssinian delegation to League, a vote no doubt influenced by recognition of Italy as her sole active supporter in case of aggression by Germany.

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0725-00

Messersmith, G.S., Vienna. To Secretary of State Cordell Hull, Washington., 1936 September 25   [Box 7 F46]

Typed Letter Copy, 1 p.

Pouch leaving today carrying despatch 914, and will refrain from further comment.

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0726-00

Messersmith, G.S., Vienna. To Wilbur J. Carr, Washington., 1936 September 25   [Box 7 F46]

Typed Letter Copy, 1 p.

Sending copy of Sept. 18 letter to Secretary; calls attention to despatch No. 914 which Carr will find interesting; leaving Sept. 26 by car to put Mrs. Mustard and Martha [Mrs. Messersmith's mother and sister] on boat at Hamburg; hopes Carr had pleasant voyage home.

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0727-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 September 25   [Box 7 F46]

Typed Letter Copy, 2 p.

Sending copy of letter to Secretary; calls attention to despatch no. 914; Austrian Minister for Finance in Geneva for talks on budget and removal of League financial control in Austria; some think Austria has lost interest in League and will get out if Italy does, but that is not the case; Chancellor did not go to Geneva because there was nothing on agenda Finance Minister could not handle, but he has indicated to French and English Ministers his willingness to go if [Yvon] Delbos or [Anthony] Eden should wish it; enclosing clippings from London Times which Dunn and [Rudolf Emil] Schoenfeld should find interesting; is glad Department has men like Schoenfeld and hopes he goes to a post of his liking.

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0728-00

Memorandum concerning certain aspects of the situation in Europe in 1914 and 1936, prepared by G.S. Messersmith., [1936 September]   [Box 7 F46]

Typed Document, 33 p.

Copy enclosed with No. 716. Believes war inevitable; compares economic and social conditions, military position, and foreign policy in 1914 with conditions in 1936 for each country in Europe.

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0729-00

McMillan, Thos. S. and Jack K. McFall, Washington. To G.S. Messersmith, Vienna., [1936 September]   [Box 7 F46]

Typed Letter Copy, 1 p.

Enjoyed meeting Messersmith during visit to Vienna; commends Messersmith on manner in which he solved housing problem for offices and residence in Vienna; Sub-Committee of Appropriations Committee likes idea of housing all U.S. offices in any given area under one roof.

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0730-00

Phillips, William, Rome. To G.S. Messersmith, Vienna., 1936 October 03   [Box 7 F46]

Typed Letter Signed, 2 p.

Acknowledges letter of Sept. 22 and copies of despatches; has not had time to read despatches yet, but will take them home for weekend; spent night in Paris on way to Rome and dined with [Wilbur J.] Carrs at Edwin Wilson's; Carrs spoke with enthusiasm about their visit to Austria; doesn't know when trip to Vienna will be possible; cannot leave until after presentation of letters to King, who is away until middle of November; is to be received by Mussolini next Tuesday.

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0731-00

Hull, Cordell, Washington. To G.S. Messersmith, Vienna., 1936 October 05   [Box 7 F46]

Typed Letter Signed, 1 p.

Acknowledges letter of Sept. 10; glad to have Messersmith's impressions of general European situation.

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0732-00

Carr, Wilbur J., Washington. To G.S. Messersmith, Vienna., 1936 October 05   [Box 7 F46]

Typed Letter Signed, 2 p.

Acknowledges letter of Sept. 21 and clippings from Neue Freie Presse; delightful trip from Vienna to Paris, stopping off in Innsbrück; hectic week in Paris; learned much about political situation there and about Department's establishment in Paris; had no opportunity to talk to [William C.] Bullit before he left for Paris, but is under impression he has right idea about organization; thanks Messersmith and Mrs. Messersmith for kindness during Austrian visit.

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Items 0733-0751   [Box 7 F47]

0733-00

Messersmith, G.S., Vienna. To Secretary of State [Cordell] Hull, Washington., 1936 October 08   [Box 7 F47]

Typed Letter Copy, 20 p.

Attempt to dissolve various para-military organizations in Austria and incorporate them into militia successful except for Heimwehr, which is strongest of the organizations and putting up most opposition; dissension within Heimwehr itself between Major [Emil] Fey faction and Prince [Ernst] von Starhemberg faction; Chancellor looks on struggle with complacency, hoping it will weaken both factions and that Fey and von Starhemberg will disappear from political scene; this would open way for elimination of [Ludwig] Draxler and [Edward] Baar-Baarenfels from Cabinet; no one questions von Starhemberg's patriotism, but his wisdom has been in doubt; financial control over Austria has been completely lifted by League; Dr. [Karl] Buresch, former Chancellor and former Minister of Finance, investigated by prosecuting attorney and his house searched to examine his papers; that evening Buresch took dose of veronal and died next day; devaluation in France, Holand, Switzerland and Czechoslovakia has worked to Austria's advantage by decreasing her external debt by 160,000,000 schillings; Austria prefers not to devaluate unless her hand is forced; Dr. [Guido] Schmidt, Secretary of State for Foreign Affairs says Italian devaluation of the lira, which was unexpected, gives new significance to Vienna meeting of Rome Protocol States; Austria's internal position continues to grow stronger, Heimwehr dissension only cause for concern; externally Government feels balance of power so strongly against Germany at present that there is less danger of war; meeting of Rome Protocol States in November will attempt to build bridge for closer economic cooperation of Danubian States; Czech Minister to Austria, [Ferdinand] Veverka in speech in Geneva, emphasized necessity for increased cooperation and breaking down artificial barriers which have been erected; Italy will seek further cooperation, while Germany will do everything possible to sabotage it; death of [Julius] de Goemboes will make little difference in attitude of Hungary; her position is such that she is forced to play with both Berlin and Rome; negotiation of permanent trade agreement between Austria and Germany postponed until November; too many difficulties in way; from Sept. 26 to Oct. 3 was on motor trip through Germany to put relatives on boat at Hamburg; talked with [Frederick T.] Birchall of New York Times who was present at Nuremberg Party meeting in Sept.; he reported meeting an anti-climax; Hitler was dissuaded from giving his prepared speech and instead merely ranted about Russia and Communism; learned in Berlin from responsible source within Party substance of Hitler's prepared speech; (1) he proposed system of European solidarity against Communism with member states agreeing to make no treaties with Russia (2) Germany prepared to enter, with member states, disarmament program (3) demanded colonization outlets (4) demanded dismemberment of Little Entente; these proposals to be embodies in note to be sent to England, France, Belgium, and Italy as conditions for German participation in Locarno meeting; Party morale low in Germany; anti-Russian, anti-Communist campaign fell flat and Vatican agreement came to nothing; Franco-Polish rapproachment great blow to Party; they feel Italy is double-crossing them by trying to counter German expansion in Southeastern Europe; German army opposed to Hitler's foreign policy and wants no war with Russia; German business and industry at low ebb; raw material situation serious; [Fritz] Reinhardt, of the Treasury, stated that within 18 months Germany can produce enough gasoline to make her independent of external supplies, but he failed to mention the cost; Hitler speaks glowingly of Germany becoming self-sufficient, but city dwellers find it almost impossible to buy meat, even if they have money to pay for it; Party circles still control business and industry; army pessimistic about German striking power; but every fourth vehicle seen on road was an Army automobile or truck; average German sees this but does not know yet the lack of raw materials and credits; German-Italian flirtation continues on surface, but underneath there is no real basis for cooperation; Dr. Schmidt, on recent visit to Rome, got impression Mussolini fears Germany will undertake something in Czechoslovakia; while in Wiesbaden, visited General Motors plant; G.M. cannot take profits out of country so must use them for expansion in Germany if they do not wish to lose whole investment; much of their production now for the military; other American companies in Germany in same situation; only hope is that balance of power in Europe, which is now against Germany, will remain so; Franco apparently has made no commitments to Italy or Germany and victory of his army may not contribute to further disturbances in Europe; in recent talk with President [Wilhelm] Miklas he said Austria is heart of European situation, and if the heart stops beating, Europe will die.

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0734-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 October 09   [Box 7 F47]

Typed Letter Copy, 2 p.

Acknowledges Dunn's letter of Sept. 22; glad Dunn had a rest and is feeling fit; hopes Dunn will read copy of Oct. 8 letter to Secretary; apologizes for length of letters but feels it better to err on side of too much than too little; has heard [Hermann] Goering is in town, passing through Vienna on way to Budapest for [Julius de] Goemboes' funeral; will probably have more visits from him now that "friendly" relations have been established between Berlin and Vienna; he likes to show himself.

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0735-00

Messersmith, G.S., Vienna. To Secretary of State [Cordell] Hull, Washington., 1936 October 16   [Box 7 F47]

Typed Letter Copy, 10 p.

[Ernst von] Starhemberg called Chancellor on Oct. 9 demanding that another Heimwehr member be added to Cabinet or he would ask [Ludwig] Draxler and [Eduard] Baar-Baarenfels, two Heimwehr members in Cabinet, to resign; Chancellor stood firm; Cabinet to remain same for present, and Heimwehr to be dissolved; Starhemberg accepted situation in good spirit, and on advice from Mussolini; rumors of a private agreement made at time of July 11 accord that Heimwehr would be dissolved and Starhemberg eliminated as two greatest enemies of Germany in Austria; no foundation for rumors; attended small dinner with leading Austrian financiers including Dr. [Viktor] Kienböck, President of National Bank; Kienböck said Austria would not devaluate unless forced to by developments outside; necessity of maintaining tourist traffic and export trade will be controlling factor; Foreign Ministers of Rome Protocol States to meet in Vienna Nov. 11; rumored that Germany would take part in conference, but no foundation for rumor; Dr. [Guido] Schmidt to go to Berlin immediately after Conference, but only as gesture to satisfy Germany; Austria would like London and Rome to iron out differences because she must depend principally on Italy and wishes Italy in stronger position; negative cooperation between Berlin and Rome continues; new Hungarian Prime Minister [Koloman de Daranyi] much wiser safer man than [Julius de] Goemboes, and Hungary likely to be less subject to German pressure; has learned [Hans Heinrich] Dieckoff new German Ambassador to U.S.; knows Dieckoff well; he will be more persona grata in Washington than [Hans] Luther and he is not a Nazi, but will not be able to speak his own mind; Germany lacks exchange for food stuffs and for raw materials for armaments; whole industrial program and employment at stake; Franco-Belgian military alliance dropped; plans for Locarno meeting will have to be reshaped; [Leon] Degrelle's activities in Belgium should be watched.

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0736-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 October 16   [Box 7 F47]

Typed Letter Copy, 3 p.

Enclosing copy of letter to Secretary and clippings from London Times; misleading news getting into press; tries to help U.S. correspondents in Vienna keep perspective, but even they are sometimes off track; article entitled "Dr. von Schuschnigg's Autocracy" gives impression Schuschnigg likes position of dictator, but he is not a dictator at heart and doesn't relish his position as head of Austrian government; [Rudolf] Hess in recent speech said cannon more important than food; food and exchange situation serious in Germany; Russian position becoming embarrassing; has said Russian cooperation should be used for maintenance of peace in Europe, but their recent mistakes make cooperation difficult; thinks Dunn will be amused by enclosed article "A Dictionary for Germans".

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0737-00

Messersmith, G.S., Vienna. To Wilbur J. Carr, Washington., 1936 October 16   [Box 7 F47]

Typed Letter Copy, 1 p.

Enclosing copy of letter to Secretary and pictures of sketch made of Carr while he was in Vienna.

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0738-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 October 17   [Box 7 F47]

Typed Letter Copy, 1 p.

With despatch 894 of Sept. 10 sent memorandum comparing situation in 1914 and 1936; Military Attaché in Vienna, [Martin C.] Shallenberger, read memorandum and thought it would be of interest to War Dept.; will appreciate Dunn's making copy available through liaison officer of War Dept.

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0739-00

English translation of editorial from Berliner Börsenzeitung., 1936 October 21   [Box 7 F47]

Typed Document Copy, 2 p.

Penciled note across bottom: "Lochner wants you to see this.R.G." Accuses Associated Press of "unfair sensation mongering" because of published reports that Germany was increasing her garrisons along the Rhine and had located twelve army corps in vicinity of French frontier; suggests Louis P. Lochner, as head of Berlin Bureau of Associated Press could put a stop to such irresponsible reporting if he wanted to.

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0740-00

Messersmith, G.S., Vienna. To Secretary of State [Cordell Hull], Washington., 1936 October 23   [Box 7 F47]

Typed Letter Copy, 12 p.

Dissolution of para-military organizations went through without disturbance; arms turned over to Army and militia; Chancellor made speech on Oct. 17 which was model of political sagacity and did much to appease [Ernst] von Starhemberg and other Heimwehr leaders; demonstration by large gathering of Patriotic Front showed increased strength of Government; Dr. [Viktor] Kienböck, President of National Bank, states Austria will not devaluate unless forced to by outside developments; question now closed until January; meeting of Foreign Ministers of Rome Protocol States now scheduled for Nov. 12 and 13; [Galeazzo] Ciano now in Berlin; English papers saying Ciano may make bargain in Berlin over Austria; doubts this possibility at present; preliminary to Vienna meeting Ciano will see [Guido] Schmidt, after which Schmidt will go to Budapest; after Rome Protocol meeting Schmidt will go to Berlin; no significance to Berlin visit except sop to Hitler, who has been pressing [Kurt] Schuschnigg to visit him; Austrians concerned about Rome-London relations; some indication that England will make financial concessions to Italy; England making up with vigorous armament program for mistakes made in past; British and French lack of action has had effect of building up Italian position; obstacles to Berlin-Rome cooperation are mutual distrust and opposing interests in Central and Southeastern Europe, but they are moving closer together; Germany wishes Italian support in isolating Russia, which will weaken England and France; impossible for League in present form to settle European problems and reorganization now would have to be made on German-Italian conditions; if [Léon] Blum Government can hold on in France and assume more middle course, France can reassert herself; recent Belgian action [in breaking up Franco-Belgian Military Alliance] was bound to happen because of Flemish faction, but unfortunate just now; head of Economic Section of British Foreign Office, in Vienna last week, said there could be no peace until German economy was put on sound basis, but England could not risk helping Germany for it would only strengthen her to reach her objectives against England; new Hungarian premier, [Koloman de] Daranyi, far better man than [Julius de] Goemboes and his Government will probably follow wiser course, though German influence will remain strong; [Hermann] Goering made Price Controller in Germany, an indication of serious economic situation; church struggle again becoming acute in Germany, and [Julius] Streicher stirring up further action against Jews; wife of German friend, visiting in Vienna, confided that her husband, who had been code expert during war, had been called to Berlin to devise new set of codes for German government; Berlin will make every effort to sabotage Vienna meeting, and Rome may soft pedal action in Central Europe to keep from antagonizing Berlin; Germany now convinced she will get no financial or political assistance from England, though [Joachim von] Ribbentrop continues to try; nor has Germany been able to drive wedge between England and France; [Franz] von Papen instructed his Counselor at German Legation to attend Chancellor's speech on Oct. 17 and then left for hunting trip; Counselor had misgivings and telephoned von Papen for further instructions; von Papen suggested he ask [Josef] Leopold, Party representative at the Legation, which shows who's boss at the German Legation; same situation exists in Italian Legation, where the Press Attaché, [Eugenio] Morreale is the real authority.

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0741-00

Messersmith, G.S., Vienna. To Wilbur J. Carr, Washington., 1936 October 26   [Box 7 F47]

Typed Letter Copy, 1 p.

Enclosing copy of Oct. 23 letter to Secretary; glad Carr had interesting stay in Paris; sending by today's pouch original of sketch made while Carr was in Vienna and several photographs of sketch.

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0742-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 October 26   [Box 7 F47]

Typed Letter Copy, 1 p.

Failed to make sufficient copies of letter to Secretary, but hopes Dunn will see letter anyway; enclosing clippings from London Times which Dunn should find interesting.

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0743-00

Messersmith, G.S., Vienna. To Secretary of State [Cordell Hull], Washington., 1936 November 02   [Box 7 F47]

Typed Letter Copy, 9 p.

Nazis, encouraged by failure of police to take vigorous action, causing disturbances in some parts of Austria; Government clarified police instructions; believes further disturbances will be prevented; election held recently among Peasant Group, giving large majority to candidates already associated with present Government; [Josef] Reither, former Minister of Agriculture and peasant leader, came out stronger than ever; Government now planning election among industrial workers; Austrian Foreign Office reorganized; Chancellor remains Foreign Minister, but named [Guido] Schmidt as Secretary of State for Foreign Affairs; Schmidt young and comparatively inexperienced but he has confidence of Chancellor and appears able; because of both Italy's and Germany's efforts to use Austria as bridge to Little Entente and Balkan Union, Austrian Foreign Office has become more important and its personnel increased; [Theodor] Hornbostel continues as head of Political Division and under him two geographical subdivisions will be set up, each headed by a career officer in the diplomatic service; no information as to what took place during [Galeazzo] Ciano's visit to Berlin; some observers think Berlin and Rome feel time is ripe for pressure on London and Paris and fear Mussolini will risk war with England to obtain Mediterranean arrangement he desires, but Austrians still hoping for improvement in English-Italian relations; Mussolini in speech yesterday gave impression nothing concrete arrived at in Berlin; Mussolini silent on Spain, but defended Hungary's revisionist aspirations; doubts either Berlin or Rome prepared to bring things to crisis yet, but situation highly explosive and even small countries beginning to arm; many believe England's insistence on sanctions solidified Italian people behind Mussolini, but England had no alternative; listened to [Hermann] Goering's recent speech on radio; violent and vindictive in references to other countries; jokes he made about foodstuff situation not well received by German people; [Josef] Goebbels' speech followed and was more effective; evil, malicious, perverted, and dangerous, he is still the greatest propagandist in the world; Austrians interested in Cardinal [Eugenio] Pacelli's visit to U.S.; announcement made that exchange of diplomatic representatives between Vatican and Washington practically assured; will keep Department informed on Vienna conference.

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0744-00

Dunn, James Clement, Washington. To G.S. Messersmith, Vienna., 1936 November 02   [Box 7 F47]

Typed Letter Signed, 1 p.

Acknowledges Messersmith's letter of Oct. 19; found memorandum submitted with despatch no. 894 of sufficient interest to circulate not only in Department but to War and Navy Departments.

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0745-00

Messersmith, G.S., Vienna. To James Clement Dunn, Washington., 1936 November 02   [Box 7 F47]

Typed Letter Copy, 2 p.

Enclosing copy of Nov. 2 letter to Secretary and clippings from London Times which Dunn should find interesting; Vienna Conference assuming considerable importance; Mussolini's speech in which he indicated support for Hungary's revisionist aspirations stirred up Little Entente; what he really wants is to break up Little Entente as further menace to France; believes there is yet no prepared agenda for Conference; [Galeazzo] Ciano coming on Nov. 9, will probably bring agenda in his pocket, and Austrians and Hungarians will have little to do with determining what is discussed; will keep Department informed.

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0746-00

Phillips, William, Rome. To Secretary of State [Cordell Hull], Washington., 1936 November 02   [Box 7 F47]

Typed Letter Copy, 2 p.

Enclosed with No. 748. In conversation with Count [Galeazzo] Ciano, asked him if in his recent conferences in Germany he had discussed question of Italian trade possibilities in Danubian States; German Ambassador, Ulrich von Hassell had informed it was important for Germany and Italy to avoid commercial competition in this region; Ciano confided that entire subject had been discussed and agreement arrived at looking to proper division of Danubian trade, including that with Austria.

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0747-00

Hull, Cordell, Washington. To G.S. Messersmith, Vienna., 1936 November 03   [Box 7 F47]

Typed Letter Signed, 1 p.

Acknowledges letters of Oct. 8 and 16; Department found Messersmith's observations and impressions interesting.

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0748-00

Phillips, William, Rome. To G.S. Messersmith, Vienna., 1936 November 03   [Box 7 F47]

Typed Letter Signed, 1 p.

Enclosure: See No. 746. Read with interest Messersmith's despatch to Department dated Oct. 24 entitled "Developments in Austrian Internal and External Situation; followed [Ernst] von Starhemberg closely; enclosing copy of despatch sent to Department; trying to get further information on German Austrian commercial deal among Danubian states; will appreciate any information Messersmith can gather.

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0749-00

Messersmith, G.S., Vienna. Despatch No. 944 to Secretary of State [Cordell Hull], Washington., 1936 November 04   [Box 7 F47]

Typed Document Copy, 11 p.

Enclosure: List of Cabinet Members. 1 p. Comments on reorganization of Austrian Cabinet; on Nov. 3 Vice-Chancellor [Eduard] Baar-Baarenfels, [Ludwig] Draxler, Minister of Finance, and [Fritz] Stockinger, Minister of Commerce, have all been dropped; the first two were members of the Heimwehr and had held high positions in it; Heimwehr has been dissolved and Chancellor felt Heimwehr influence should be removed from Cabinet; much dissension between Draxler and Stockinger on financial policy and for personal reasons; these replaced by [Ludwig] Huelgerth, Rudolf Neumayer, and Wilhelm Taucher respectively; Minister of Justice, Robert Winterstein replaced by Adolf Pilz, a man much better qualified for the job; [Eduard] Glaise-Horstenau, who entered Cabinet after accord of July 11, 1936 as Minister without portfolio to form liaison between so-called nationally minded elements in Austria and the government, now named Minister of Interior; Chancellor felt it safer to give him a post which would take up his time and prevent his moving about the country talking with various government officials; Odo Neustädter-Stürmer named Minister of Public Security, a new ministry; Hans Pernter remains as Minister of Education and Guido Schmidt remains as Secretary of State for Foreign Affairs; most of new appointees well-qualified and government will be strengthened because of reorganization; believes Austrian people will accept change without opposition; with elimination of some of the pro-Italian members and the addition of Glaise-Horstenau, the changes will on the whole be more pleasing to Germany than to Italy.

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0750-00

Feis, Herbert, Washington. To G.S. Messersmith, Vienna., 1936 November 05   [Box 7 F47]

Typed Letter Signed, 1 p.

Thanks Messersmith for copy of Quarterly Report of Commercial Attaché; off Saturday to Buenos Aires; feels guilty leaving behind European matters; asks if there is chance of turning peoples of Central Europe aside from thoughts of conquest to thoughts of prosperity.

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0751-00

Messersmith, G.S., Vienna. Despatch No. 945 to Secretary of State [Cordell Hull], Washington., 1936 November 05   [Box 7 F47]

Typed Document Copy, 14 p.

Principal developments in Austria recently have been elections in the farmer and peasant group and reorganization of Cabinet; election first to be held under present constitution and results satisfying to government; approximately 81 percent of voters appeared at polls; next election will be for worker group; reorganization of Cabinet not influenced by external factors or pressures; reorganization strenghtens position of Chancellor, but some foreign press reports that changes were influenced by Chancellor's desire to emerge more clearly as dictator are incorrect; economic situation continues to improve slowly; Vienna Conference of Rome Protocol Foreign Ministers now scheduled for Nov. 11-13 looked upon with hope in Vienna and with mingled hope, doubt and fear in Southeast Europe; hopes for meeting now somewhat dim because of two recent occurences - Count Galeazzo Ciano's visit to Berlin, inspiring fear of some arrangement between Berlin and Rome, and speech in Milan by Mussolini, which was especially friendly in reference to Yugoslavia and appeared to support Hungary's revisionist claims; speech is considered effort to break up Little Entente as preliminary measure for facilitation of arrangement between Germany and Italy; it is hoped in Austria that matter of revision will not come up in Vienna Conference for Austria would not wish to offend Hungary, but would be loath to support her revisionist claims; Secretary of State for Foreign Affairs Dr. [Guido] Schmidt said in press interview Austria expects to remain in League of Nations, but that reforms in the League are needed; asked correspondents not to place too great hopes in Vienna Conference; he said relations with Germany since the July 11 accord better than they had been in three years, and that trade agreement negotiations would be resumed shortly; Schmidt himself expects to visit Berlin at invitation of Foreign Minister [Konstantin] von Neurath; between pressure from Italy and Germany, Austria may be forced to restore the monarchy as an alternative to succumbing to either Italian or German influence.

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Items 0752-0768   [Box 7 F48]

0752-00

Messersmith, G.S., Vienna. To Cordell Hull, Washington., 1936 November 06   [Box 7 F48]

Typed Letter Copy, 18 p.

Pleased at President's reelection; commends Hull on trade agreements program; wishes for Hull successful trip to South America; important events in Austria have been election in farmer group and reorganization of Cabinet; election among labor group planned; new Cabinet strong and has popular support; Little Entente and Balkan Union looked forward to Vienna Conference of Rome Protocol States with mingled hope and fear; hoped Italian interest in Central and Southeast Europe might counterweigh increasing German political and economic pressure; Austria prepared to act as bridge between Rome Protocol States, Little Entente, and Balkan Union; hopes for fruitful results from conference destroyed by [Galeazzo] Ciano's Berlin conversations and Mussolini's speech supporting Hungary's revisionist aspirations; no definite information as to what took place on Ciano's visit to Germany; Ciano said to be overawed by German military power; Austrian Secretary of State for Foreign Affairs said Austrian position while better internally, was growing constantly more difficult because of pressure from both Berlin and Rome; Conference may produce negative results; if Italians bring up Hunga