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growth of the German race until it constitutes the largest and most powerful nation in the world, and ultimately, according to some Nazi leaders, until it dominates the entire globe.

The German people suffering from a traditional inferiority complex, smarting from their defeat in the war and the indignities of the post-war period, disillusioned in their hopes of a speedy return to prosperity along traditional lines, inflamed by irresponsible demagogic slogans and flattered by the statement that their German racial inheritance gives them inherent superior rights over other peoples, have to a large measure adopted the National Socialist point of view for the time being.

ECONOMIC AIMS

There are two other purposes subsidiary to the main purpose. Germany is to be made the economic center of a self-sustaining territorial block whose dependent nations in Central and Eastern Europe will look to Berlin for leadership. This block is to be so constituted that it can defy wartime blockade and be large enough to give the peoples in it the benefits of free trade now enjoyed by the 48 American States. In accordance with this purpose, an agricultural selfsufficiency program has been adopted, foreign foodstuffs are being rigorously excluded or the imported supply secured in increasing quantities from Central and Southeastern Europe. A hereditary peasantry has been set up, firmly attached to the soil through the prohibition of the sale or mortgaging of the peasants' land or crops. An increasing number of commodities have been placed under Government monopolies with fixed prices to consumers and producers, the principle of the numerus clausus or fixed number of persons engaged in any occupation has been increasingly adopted. The National Socialist conception of the correct or Government-fixed price instead of the price fixed by supply and demand has been introduced.

SOCIAL AIMS

The second subsidiary purpose is the welding of all individuals in the present and future Greater Germany into a homogeneous racial family, gladly obedient to the will of its leader, with class and cultural differences inside the country eliminated, but a sharp line drawn between Germans and the foreign world outside. In carrying out this purpose, the Jews are to be entirely eliminated, the Slavic or eastern elements in the population to be minimized and eventually bred out of the race. A national religion is in process of organization; trade unions, political parties and all social, political, cultural, trade or

other organizations not affiliated with the National Socialist party, have been abolished, the individual's rights have been largely taken away. In the future the nation is to count for everything, the individual for nothing. Germany is to engage in a gigantic struggle with the rest of the world to grow at the expense of its neighbors. The German population owes the nation the patriotic duty of supporting it and bringing forward all necessary sacrifices to reach the common goal.

RETENTION OF POWER

To these long-distance objectives must be added the fourth and most important purpose of all, namely to retain control at all costs. The National Socialist party may compromise on distant objectives, if necessary, but cannot compromise on a question of retaining its absolute hold on the German people. This control had been gained by making most irresponsible and extravagant promises; by the studied use of the press, the radio, public meetings, parades, flags, uniforms, and all methods of working on popular psychology and finally by the use of force. This control once lost, could never be regained. It is absolutely necessary for the party to continue to make a show of success and to keep popular enthusiasm and fanaticism alive. There must be no open criticism or grumbling, even discussion of the future form of the State, the form in which industry is to be organized, or the laws regarding the hereditary peasantry is prohibited. Since the German public is politically inept and unusually docile, the Nazi movement has been able to dominate the situation for the past year, but the hard facts of the economic situation are beginning to be felt by the more intelligent Germans, particularly bankers, business men, professional men and persons who have touch with the outside world.

DANGER OF WAR

The Nazis are not satisfied with the existing map of Europe. They are at heart belligerent and aggressive. True, they desire nothing more than a period of peace for several years in which they can gradually re-arm and discipline their people. This period may be 5 years, 10 years, or longer, but the more completely their experiments succeed the more certain is a large-scale war in Europe some day.

NAZIS WANT TO WIPE OUT 1918

In estimating the aims and purposes of the National Socialist movement, we must not make the mistake of putting too much reliance on public statements designed for consumption abroad which breathe the spirit of good peace and will and assert the intention of

the Government to promote the welfare of the German people and good relations with their neighbors. Nor should we imagine that the present Government leaders will feel and act as we would in their circumstances, namely think only of Germany's welfare. The real emotional drive behind the Nazi program is not so much love of their own country as dislike of other countries. The Nazis will never be content in merely promoting the welfare of the German people. They desire to be feared and envied by foreigners and to wipe out the memory of 1918 by inflicting humiliations in particular upon the French, the Poles, the Czechs and anybody else they can get their hands on.

A careful examination of Hitler's book and his public speeches reveals the fact that he cannot be considered as absolutely sane and normal on this subject. The same is true of many other Nazi leaders. They have capitalized the wounded inferiority complex of the German people, and magnified their own bitter feelings into a cult of dislike against the foreign world which is past the bounds of ordinary good sense and reason. Let us repeat this fact and let it sink in, the National Socialist movement is building a tremendous military machine, physically very poorly armed, but morally aggressive and belligerent. The control of this machine lies in the hands of narrow, ignorant and unscrupulous adventurers who have been slightly touched with madness from brooding over Germany's real or imagined wrongs, as well as the slights and indignities thrown in their own individual way as they attempted to organize the movement. Power of this kind concentrated in hands like these is dangerous. The Nazis. are determined to secure more power and more territory in Europe. If this is voluntarily given to them by peaceful means, well and good, but if not, they will certainly use force. That is the only meaning behind the manifold activities of the movement in Germany today.

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793.94/6606

The Ambassador in Japan (Grew) to the Secretary of State

[Telegram: Paraphrase]

TOKYO, April 25, 1934-1 p. m.
[Received April 25-9: 55 a.m.]

75. This morning I had an interview with the Foreign Minister. Mr. Hirota referred, on his own initiative, to the subject of the Amau

statement regarding the attitude of Japan toward foreign assistance to China, and said that he wished to clarify that statement to me in confidence. He told me that under questioning by newspaper men, Amau had given out the statement without his knowledge or approval, and that the world had received a wholly false impression of Japanese policy, that Japan had no intention whatever of seeking special privileges in China, of encroaching upon the territorial and administrative integrity of China, or of creating difficulties for the bona fide trade of other countries with China. Various foreign activities have tended to disturb peaceful conditions in China, and Japan is naturally very much interested in those peaceful conditions owing to her nearness to China. But that does not mean that there is any intention or desire on the part of Japan to claim a privileged position in derogation of the rights and responsibilities to which the signatories of the Nine-Power Treaty are entitled. The policy of Japan is complete observance and support of the provisions of the Nine-Power Treaty in every respect.

The insistence by the Chauvinists upon a more aggressive foreign policy, Mr. Hirota said, makes his position difficult. For his own part he is trying to follow the policy of the Emperor, with whom he is constantly in touch, and is seeking to achieve with all countries, and especially with the United States, relations of friendliness. He intends to do his best to bring to a successful conclusion the negotiations with Russia for the purchase of the Chinese Eastern Railway. If that controversy can be settled, there should be better relations between Russia and Japan, which would in turn tend to induce better relations between China and Japan. This whole constructive policy of the Emperor and the Government would obviously be impeded if Japan should now seek special privileges in China. Mr. Hirota said that he has managed thus far to satisfy both the Liberals and the Chauvinists, and that, since he has the Emperor's support, he will continue resolutely in his course even though that should mean his own death. He added also that the Minister of War supports him fully.

Mr. Hirota went on to say that attempts are constantly being made by certain foreign influences, through the press and by other means, to make trouble for Japan. It was his earnest hope that the United States Government should have a perfect understanding of his attitude toward Amau's statement, but he requested that his remarks to me be treated as confidential since his position was difficult. In conclusion, the Minister said that our Government may rest assured that Japan will take no action in China purposely provocative to other

countries or contrary to the terms or spirit of the Nine-Power Treaty. I do not question the sincerity of the Minister's remarks as reported above. Nevertheless I made the observation that the Government and people of the United States would be less impressed by statements of policy than by more concrete evidence.

I was told by the Minister that a similar explanation will be made to you by Saito. The Minister is to receive the British Ambassador at 3 o'clock.

Rumors are reported in the United Press that the Department will instruct me to ask for a clarification of the statement by Amau. Unless I receive supplementary instructions, however, I shall assume that the present telegram answers the Department's inquiry.

GREW

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793.94/6625a

The Secretary of State to the Ambassador in Japan (Grew)

[Telegram]

WASHINGTON, April 28, 1934-7 p.m.

59. (1) Please call as soon as possible upon the Minister for Foreign Affairs and, under instruction from your Government, deliver to him an aide memoire, as follows:

"Recent indications of attitude on the part of the Japanese Government with regard to the rights and interests of Japan and other countries in China and in connection with China have come from sources so authoritative as to preclude their being ignored. Due consideration being given to the circumstances under which these indications have appeared and to their substance, it seems necessary and desirable that the American Government, adhering to the tradition of frankness that has prevailed in relations between it and the Government of Japan, reaffirm the position of the United States with regard to questions of rights and interests involved.

The relations of the United States with China are governed, as are our relations with Japan and our relations with other countries, by the generally accepted principles of international law and the provisions of treaties to which the United States is a party. In international law, in simple justice, and by virtue of treaties, the United States has with regard to China certain rights and certain obligations. In addition, it is associated with China or with Japan

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