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million people and growing.
 
 
What Is to happen to her?    She needs to be fed. Her
position is unique among great States.    She need not be concerned 
with the little States all of whom can practically feed themselves.
 
 
Consider, however, the position. All great States except
Germany can feed themselves. U.S.A. Russia France with her
colonies, Great Britain with the Empire. Germany alone is
closely confined to a narrow space and deprived of a sea
position. She needs Colonies: What colonies?  It Is natural
to answer her former colonies, though she would not insist upon
these If she were given equivalents elsewhere.    All countries
should contribute. Roosevelt might take the lead in calling
for a contribution to the solution of Germany's economic problems
to which many countries would contribute.  He would contribute
under the head of war debts.    This was not a small matter.
It was a vital matter.    The peace of the world was involved In
finding a solution and if the nations knew that by these relatively
important concessions they would assure peace they would                                                
readily pay the price.    People objected on grounds of strategy.
On the contrary Germany's colonies would be so many hostages
to fortune, particularly in view of the Anglo-German naval
Treaty.
 
 
Besides, Schacht would undertake to accept the most
binding restrictions. They would not insist upon sovereignty
provided Germany would be in charge of economic arrangements.
 
 
Schacht thought if refusal was persisted in, Hitler would
come to the view and might state publicly, namely that "He,
Hitler, had again and again attempted to arrive at a peaceful
settlement with England, had again and again offered a peaceful
solution of the colonial question. This had been refused.
He would then add that the responsibility for maintaining peace
was no longer his,"
 
 
Schacht proceeded to allude to Amery's advice to Germany -
you can't have colonies, but Eastern Europe lies before you.