The Hossbach notes, dated 10 November 1937, on the important conference of 5 November 1937 in the Reichskanzlei, reveal a further crystallization of Hitler’s program of absorption and conquest in Europe (386-PS). Definite plans were laid for the early acquisition of Austria and Czechoslovakia, and for their exploitation in preparation for further military operations. So far as appears, Schacht was not present at this particular meeting. But his awareness of what occurred at the meeting is shown by the fact that he told Ambassador Bullitt on 23 November 1937, that
“Hitler was determined to have Austria eventually attached to Germany and to obtain at least autonomy for the Germans of Bohemia. At the present moment he was not vitally concerned about the Polish Corridor, and in his [Schacht’s] opinion it might be possible to maintain the Corridor provided Danzig were permitted to join East Prussia, and provided some sort of a bridge could be built across the Corridor uniting Danzig and East Prussia with Germany.” (L-151).
Although Schacht apparently sought to convey the impression to Ambassador Bullitt that he desired to stay Hitler’s hand but was powerless to do so, it is clear that he was actually in complete sympathy with Hitler’s objectives. Despite the mounting tension which followed his conversation with Ambassador Bullitt, Schacht remained as President of the Reichsbank, and in that capacity established, in advance of the invasion of Austria, the rate of exchange between Marks and Austrian Schillings which was to prevail after the absorption of Austria (EC-421).
Moreover, under his direction, the Austrian National Bank was merged into the Reichsbank (Reichsgesetzblatt, 1938, I, 254). His speech of 21 March 1938, to the employees of the former Austrian National Bank on the occasion of its obliteration as an independent institution, betrayed his true feelings. After inveighing against “the dictates of Versailles and St. Germain”, Schacht stated:
“Thank God, these things could after all not hinder the great German people on their way, for Adolf Hitler has created a communion of German will and German thought, he bolstered it up with the newly strengthened Wehrmacht and he then finally gave the external form to the inner union between Germany and Austria.”
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“One person says he would have done it maybe in one way, but the remarkable thing is that they did not do it (hilarity), that IT WAS ONLY DONE BY OUR ADOLF HITLER (Long continued applause) and if there is still something left to be improved, then those grumblers should try to bring about those improvements from the German Reich and within the German community, but not to disturb it from without. (Lively agreement)”.
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“I ask you to raise your hands and to repeat after me:
I swear that: I will be faithful, and obedient to the Fuehrer of the German Reich and the German people, Adolf Hitler, and will perform my duties conscientiously and selflessly. (The audience takes the pledge with uplifted hands).