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taken the situation in hand and are exhorting the 
people to tighten their belts so that the necessary raw
materials can be imported instead of food. Goebbels'
speech on this subject last Saturday was brilliant
contribution to this campaign.
 
 
The persecution of the Jews goes on unabated and 
it is reasonably certain that a good deal of actual
expropriation will be increasingly resorted to. It
looks as though the object is to get the Jews out of
serious factor in the whole situation is the lack of
raw materials; this is increasingly evident and everything
possible will be resorted to to get enough foreign
exchange to get the necessary raw stuffs, except there
will be no change in any of the radical platforms to
which the Party is committed. Bankers are prophesying
financial collapse; but those statements cannot be
taken seriously. The Nazis know how to muddle through
and I am confident that Mr. Schacht's financial machinery
will stand a great deal of strain and for a comparatively
me that the total extra-budgetary expenditures were not
much over11,500,000 marks' while estimates have been
made up to 20 billions.
 
 
The main lines of the present policy might be summed
up as follows:
 
 
1) In Home Affairs: 
 
Proceeding with all measures which
favor the idea of the total supremacy of the state:
radical, social and religious.
 
 
Preserving the supply of raw materials for armament
and work at the sacrifice of the food supply; consequently
a reduced standard of living.
 
 
No change in the wage policy; but increased propaganda to 
placate the workers with regard to their social status in 
the new Germany: Kraft durch Freude, etc.
 
 
2) In