- 3 -
 
      Great Britain and France so that gradually they have to hand 
      over vital possessions because they are not strong enough to 
      hold them by force. The following is a statement attributed to 
      a leading Nazi as to their programme along these lines: -
 
      
 
 
"It is the destiny of the Fuehrer to do more than lead 
      the German Volk out of the wilderness of defeat. We shall become 
      supreme and strong. France for certain, England probably, are 
      decadent peoples and must make way for a powerful people who 
      are ready, as all the world has seen, to make unlimited sacrifices 
      for national greatness. We shall absorb Austria and extend our 
      control over the Balkans and down the Danube Valley. Czechoclovakia, 
      a nest of Bolshevism, must disappear. It is an anachronism. Neither 
      England nor France will fight for the Czechs. We must gain access 
      to the Mediterranean so that a German bloc extends from Danzig 
      to Trieste. When we have established effective military and economic 
      control over Central and Eastern Europe we shall have secured 
      ourselves against the danger of blockade, thanks to the Four 
      Year Plan for self-sufficiency mud the raw materials, especially 
      corn, timber and oil, in Eastern Europe. Now will come the supreme 
      moment when, being secure in Europe, we shall demand colonies 
      in order to lay the foundations of a world empire. Will England 
      concede our demands? I think she will give way. You ask why? 
      Because you will not be strong enough to refuse. You will very 
      likely be in trouble in the Far East and in India and the Middle 
      East. The Americans won't help you - not until it's too late 
      anyhow. I don't deny that Great Britain is making a big effort 
      in the air, but that is not the point. Even if your Air Force 
      is as good as ours, and I hear you are behindhand in your plans, 
      nothing can alter the vulnerability of London and your tightly 
      packed industrial areas. That's where you are at a disadvantage 
      as compared with my country and it's one you can't get away from, 
      and so I believe England % will give in over the colonies."
 
      
 
 
On this assumption the "squeeze" would result first 
      in the transfer of, say, ex-German colonies and islands and facilities 
      for communications and trade. The totalitarian methods of trade 
      and development would then be applied, but what would be more 
      serious,