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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 30

outlet to thrift and natural abilities of his countrymen and change
their present desperation into future hope; that resulting therefrom
the present artificial barriers of international commerce would be
broken down and revision of currency control and other reforms
would automatically follow.
  Schacht stated that he hoped the President would call an interna-
tional conference in Washington.20 To this the writer suggested that
possibly the President would be indisposed to become entangled in
these matters unless there was some assurance of success. Schacht
suggested that the conference should not be called unless situation
had been practically agreed upon in advance; that matter for discus-
sions should be used only as ancillary to the general purpose and as
a cap to the whole arrangement; that the conference if called should
not be called an "economic conference" but a "peace congress"
or some
such words.
  Writer stated that in frankness he should observe that while peace
loving people of the world sympathized with the straits of the Ger-
man people, that there was nevertheless apprehension arising out of
past aggressive acts, speeches (Nuremberg) and other publications that
militarism, regimentation, persecution of races and religions indicated
not a spirit of peace but a lust for conquest and domination. Schacht
earnestly, and I believe sincerely, rejoined that these recent manifes-
tations were simply an effort to restore the morale of the German
people after years of disappointment as a democracy in its negotiations
with powers for 12 years and "were the manifestations of the des-
peration and terrible plight of a people bottled up and being econom-
ically starved in a world of plenty." He intimated that armaments
and the like were really trading stock to force a measure of justice
upon realistic and selfish nations who had been enemies of his people.
  In conclusion Schacht expressed greatest admiration for the Presi-
dent's Buenos Aires speech2' and the splendid results of Secretary
Hull's conference there.22
  The writer did not have the opportunity to advise Ambassador Dodd
of the foregoing before leaving. Prior thereto the writer had reported
directly to Ambassador Dodd as follows.
  The writer had several conferences with old friends in the German
Foreign Office and through them met some of the other official tech-
nical experts. The purpose of these discussions was to obtain some
information upon the Spanish situation. From each the writer ob-
tained the same view, namely, that the Spanish crisis was over, that
both outside and inside Spain all parties were generally agreed that
it should be a Spanish internal problem and should not be settled by
20See pp. 665 ff.
2 Department of State, Pres8 Releases, December 5, 1936, p. 423.
' See Foreign Relations, 1936, vol. v, pp. 3 fif.

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