HITLER'S PROJECTED EUROPEAN FEDERATION PROCLAMATION     
 
                                                            
 
          INFORMATION FROM A GERMAN INDUSTRIALIST           
 
 
On the 13th May it was reported that information had been obtained, 
indirectly, from a Director of an important German industrial concern,
who claimed to have excellent connexions in the German Foreign Office. 
The main feature of the report was that, if a definite agreement was not 
reached by the end of May permitting large scale German economic penetration
and exploitation of the U.S.S.R., war would be made on that country, 
preparations for which were to be completed before the end of May.
 
 
2. The following information has within the last few days been obtained, 
indirectly, from this same German industrialist, and the proclamation part 
is based, he states, on what he has learned from a friend in the German    
Foreign Office. This industrialist is not a regular source of ours, and we 
have little previous check on his reliability beyond the information quoted 
above; but independent information from Vichy, quoted at the end of this 
report, has a confirmatory bearing on his statements, and there were 
separate indications of a forthcoming peace move, involving Spain, France, 
Switzerland and the Vatican. i
 
 
Stabilising of the Eastern Front
 
 
(i)    Every effort is being made to etabilise a front line in the East by
the 20th/25th November, including the capture of Moscow if possible.
 
 
The projected proclamation
 
 
(ii) Hitler is planning to announce, some time in December, possibly at
Christmas, a "Magna Carta of European Federation", to be specially supported
by France, Italy and Spain.                                                                                              
 
 
(iii) The German Foreign Office has been working on the necessary preparations
for about the last month. The recent meetings which Ribbentrop has had with
De Brinon, Abetz and Ciano have been directed towards reaching a final
settlement of the French-Italian problem, regarding which certain difficulties
are still to be overcome before the proclamation is launched.
 
 
(iv) The proclamation, which will be accompanied by far-reaching concessions 
and ameliorations for the occupied territories, will be on the following 
general lines. No direct peace offer will be made to Britain, but air and 
submarine attack may be suspended for a period in an attempt to make the 
peace intentions convincing.
 
 
(a)     Europe becomes a "voluntary federation".
 
 
(b)     Hitler has no designs against other continents, but should
Britain or America continue the war they will be resisted
by the combined strength of United Europe.
 
 
(c)     European Russia having been "liberated", there will be no
interest in carrying the campaign further East. The duty
of the whole of Europe will be to collaborate in the
defence against Asiatic Russia. The danger from the latter
will be greatly emphasised.