3                              
 
 
bring a realization of the dangers to the regime. The
intelligent foreign observers here who in December felt                                              
that the regime might last are now, so far as I can see,
a unit in believing that it cannot continue for more than
five or six months at the most. I talked last evening
with the best informed of the American correspondents
here and the one who has wide and close contact with the
highest leaders of the Party, and he was very direct in
his statement that they would be finished in five or six
months, unless help comes to the regime from the oats~de
which will prop its falling prestige in the country and
which will provide the raw materials whioh they have to
have. I have information showing that business men in
various parts of the country who have been rendering lip
service to the present tegime for various reasons are now
being more outspoken and have lost all confidence .....
Schacht can hardly agree to pay anything, because if he
does, it is practically certain that he can't pay anyway.
If he did agree to pay and if they could pay, I am sure
the agreement wouldn't be of any use, for the secondary
people in control here are not going to permit any ex-
change to be used for interest payments. Their only
hope is to try to force us into some agreement by which
they pay nothing and the bankers promise to use their
influence to get credits for raw materials and to add
 
 
credit