-4-                             
 
 
 
Germany and Italy, with the greatest war equipments any people have
ever had, are cooperating in such a way that their dictators may do
what they wish. You saw what happened last winter when Mussolini agreed
publicly to support Hitler's Rhine move. Everybody recognizes the
helplesness of France when Italy and Germany sent men, airplanes and
arms to the Spanish revolutionists from July to October. And the second
week in September Hitler, Goebbels and Rosenberg delivered offensive
attacks upon democracies. If you or the English monarch delivered such
an attack on neighboring powers serious results would almost surely
follow among one's constituents. The democratic peoples in Europe made
no protests, not even Russia. Of course the cruel dictatorship in
Moscow could hardly look for international support. At the present
moment small European democracies: Czechoslovakia, Sweden, Denmark,
Holland and Switzerland, according to their representatives, are
contemplating some such declarations as ungrateful Belgium made the
other day. These Ministers say the League of Nations and the World
Court have no more value; one sees readily why small powers resort to
armed neutrality.
 
 
With so many democracies nervous, even fearful of annexations, and
England and France helpless as a result of their foolish decisions
since 1930, why may not Hitler annex strategic parts of the Balkan area
and Mussolini seize
islands in the Mediterranean without war? Spain is to be a protectorate
of Italy, perhaps Egypt annexed. High officials here say Germany is to
have colonies in the Far East with Italian-Japanese approval. One thing
is certain: these dictators mean to dominate Europe and there is a fair
chance of their doing it without war.
 
 
One serious difficulty is mentioned here by men like Dr. Schacht, and
that is the enormous debt situation. According to best possible figures
here, Germany owes her own