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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. General

Analyses and reports of general political developments in Europe affecting the maintenance of international order and the preservation of peace,   pp. 24-214 PDF (74.1 MB)

Page 29

tility of the Moslems of Syria to the Turks. He talked, however, in a
most friendly way about Turkey, said that he realized the Turkish
position was based on fear that Mussolini might at some future date
attempt to take Alexandretta, and did not seem disturbed about the
740.00/100: Telegram
   The Ambassador in the Soviet Union (Davies) to the Secretary
                             of State
                               Moscow, January 20, 1937-11 p. m.
                               [Received January 20-9: 15 a. m.]
  12. To the President and Secretary Hull or Judge Moore.19 A few
hours before departure from Berlin I had most unusual visit with
Schacht. It was expressly personal and specifically unofficial. Be-
cause of its unusual frankness and the explicitness and comprehen-
siveness of its character the writer concluded to forward information
by cable.
  Schacht expressed the greatest admiration for the extraordinary
abilities and powers of President Roosevelt in domestic matters and
expressed the hope that these powers might be used for the preserva-
tion and establishment of world peace. He stated the following: that
the present condition of the German people was intolerable, desperate
and unendurable; that he had been authorized by his Government to
submit proposals to France and England which would (1) guarantee
European peace; (2) secure present European international bound-
aries; (3) reduce armaments; (4) establish a new form of a workable
League of Nations; (5) abolish sanctions with new machinery for joint
administration; all based upon a colonial cession that would provide
for Germany an outlet for population, source for foodstuffs, fats and
raw material; such cession of colonies to be by joint agreement of other
powers and with colonies themselves; that France (Blum) was sur-
prisingly agreeable thereto in principle and suggested that France
approach England; that England flatly rejected the proposal; that
he had tried to secure opportunity for informal discussions with the
English Foreign Office but the overture was rejected.
  Schacht earnestly urged that some such feasible plan could be
developed if discussions could be opened; and that if successful would
relieve European war menace, relieve peoples of enormous expendi-
tures for armament, restore free flow of international commerce, give
19R. Walton Moore, Assistant Secretary of State.

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