-3-                             
 
 
Major Black went on to say that Germany was                  
definitely planning a customs union and a monetary union
with the smaller states to the southeast, that she was
going very slowly for the moment in Czechoslovakia as it
was a laboratory test being watched by her neighbors.
As to German psychology he said that instead of regarding 
the acquisition of Czechoslovakia as a vast victory for
Hitler achieved by his having stronger nerves than his
opponents, the man in the street had reacted somewhat as
follows: He never believed that there was going to be any
fighting until some time in September. He viewed the
prospect with horror. Then Chamberlain came over to
Germany and war was averted. Ergo, Chamberlain was the
man of peace and a public hero in Germany. As the acquisition 
of the Sudeten area had been assumed from the beginning 
it was not considered an undue triumph. The German authorities 
did not like having Chamberlain or the British
so popular in Germany; as a result the Goebbels propaganda
against England was intensified and has been going full
blast ever since. The Germans did not take too seriously
the Italian demands for expansion in the Mediterranean;
they were merely useful in keeping French and British attention 
concentrated elsewhere than on themselves.