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lions, with the consequent increase in business and in tax revenue. It
meant that every German citizen unconsciously and involuntarily
perhaps, according to his private views on National Socialism, could
hold up his head and shake off the weight of the defeatist's
inferiority complex. Externally, it meant
that Germany could no longer be dealt with dictatorially and that her
statesmanship and diplomacy with a strong military background had to be
reckoned with a a basis of equality mingled with fear, whether it was
at a conference table or in lone-hand maneuvering.
 
 
Regardless of the Justification of this action, the objective viewpoint
must concede that the basis for National Socialist foreign policy was
thus firmly
established. *
 
 
1 (b). The announcement of a naval building program was shortly
followed by the Anglo-German Naval Agreement, reached on June 18, 1935,
whereby the German navy might be constructed up to 35 per cent of the
total British navy, and not only gave Germany domination of the Baltic
but amounted to de facto recognition of Germany's breach of Versailles.
Incidentally, because of the necessary absence of a portion of the
 
 
 
National Socialist "Program", Point 22, Munich, February 24,
 
          2.MEIN KAMPF, pages 298, 307, 647, 648.           
 
      3. Embassy despatch No. 1876, of March 26, 1935.