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strength. It is now reasonably sure that by thge middle
of 1936 it will have about 600,000 well trained soldiers 
and possess the heavy artillery which a first-class well
equipped army needs. The preparations are going on according
to conserative regulations and rules' no hurry
or rush is evident. The usual necessary time is being
allotted to the training and development of the army, 
that is to bringing it up to a war-time strength, probably
on the same footing as it was in 1914 when Germany was 
able to place into the field a first-class army of
2,400,000 men, it is expected that that will be accomplished 
by the middle of 1938.
 
 
No one can give for the moment a clear picture of 
what is really going on in the highest Government circles.
The situation is compicated and very much obscured. The
radical element in the Party are no doubt bringing considerable
pressure to bear upon Hitler and the net result
of the Nuremberg rally was to increase their prestige
outwardly if no inwardly. What is really going on inwardly 
is the great question. Hitler leans strongly
toward the old party guard and he is not yielding everything
to Schacht, the Reichswehr and other conservative
forces. For instane I am inforced that a considerable
struggle is going on now between the Reichswehr and 
men whom Hitler wants to equip with heavy arms, just as
any division of the Reichswehr. This still shows lack
of trust on both sides; and I understand that this "lack
of trust" is very real. Nevertheless the relations between
the Party-State and the Reichswehr are not being
severely tested. Both sides are avoiding that' and I am
informed quite reliably that if a show-down came between
the Party and the Military conservative forces the
responsible circles in the Reichswehr I have no doubt
that it represents the actual situation. This indicates the 
strength of Hitler and his party. Furthermore, in spite
of the lack of raw materials and the food shortage which 
is most aggravating to the general public no sacrifice of
Nazi principles is even thought of to relieve this
situation. Instead the principal Nazi leaders have
 
 
taken