and the Balkans in his pocket Hitler might think that the 
      auspicious time to launch his peace offensive would be just before 
      winter comes. He would then pose as the regenerator of an effete 
      European system and would propose a United States of Europe composed 
      of so called free states, between whom tariff walls and economic 
      barriers would have been abolished and some currency plan of 
      Dr. Schacht's devising would have been instituted. Being in fact 
      master of Europe Hitler could afford to restore a semblance of 
      freedom to his victims. America would then be plausibly reminded 
      of the Monroe Doctrine and the Continent would well have become 
      a closed German market from which Britain and America would be 
      largely excluded.
 
      
 
 
A scheme of this kind could be dressed up in such a plausible 
      appearance as to make a formidable appeal to world public opinion 
      sickened by the horrible destruction of war and the spectre of 
      threatened famine in Europe. If, in addition, Hitler were big 
      enough to renounce annexations and indemnities the appeal might 
      become irresistible and might induce Europe to accept a peace 
      which would be a moral and political disaster of the First magnitude. 
      General Smuts thinks consultation and agreement with the United 
      States on a positive alternative plan will be essential. Meanwhile 
      a warning note could be sounded in the press and in speeches 
      in both countries to help prepare public opinion against Hitler's 
      manoeuvres. Advance ridicule Smuts thinks, might well take much 
      of the strength out of it.
 
      
 
 
August 5th, 1940.