EXTRACT I had a separate conversation with Schacht. He made reference to his article in Foreign Affairs on the question of colonies for Germany. I asked whether he had msde any progress in this regard with the French and the British. The French attitude, he said,after his visit to Paris late last summer, was satisfactory; the Germans had found it entirely possible to have direct conversations with the French. The British, he said, had not yet given a definite or formal answer to Germany's plea for raw material resources although he had been most discouraged by Eden's attitude and the British rebuff to the French approach on this subject after Schacht's visit to Paris. Schacht reminded me of the Hitler Government's sincere offers for disarmament and peace. One after another of these offers, he said, including that of limiting the army to 300,000 men had either been totally ignored or had been refused. He told me he thought they might be making their last offer in the outstanding offer for peace in return for colonies. Great Britain and the world, he said, should understand that the Hitler Government is firmly established, and if there is any attempt to humble Germany the German people will be solidly behind it. Schacht said again that it is not possible to have world peace without German peace. He emphasized the efforts and |