A number of Englishmen were invited to the Party Day of 1934, of which some at least portrayed a favorable attitude towards Germany. Above all was Captain McCaw, semi-official counsel of the English Ministry of War and liaison man between other ministries. McCaw was previously adjutant to Lord Kitchener, and as we ascertained, has worked for a German-British understanding in official quarters. Besides, there was also the truly enthusiastic adjutant of the Duke of Connaught (uncle of the English King), Archibald Boyle, who was called upon all matters of foreign policy by the Air Transport Ministry, and who worked for the same purpose. To these important contacts may be added a great number of other connections with British politicians, officers, and members of Parliament.
It naturally is to be understood that other personalities of the Nazi Party (NSDAP) had important connections in England and have utilized them. In conclusion I believe I can say that the England Division of the Foreign Policy Office (APA), in spite of many difficulties and counter-currents upon which I will not enter any further, has done its duty in the special purpose of helping to create a German-English understanding.
2. Northern Division: The winning over of the Scandinavian countries to the side of Germany appears as a foregone necessity for future German foreign policy, but the necessity is also as great to prevent the Scandinavian countries from making a clean entry into the circle of anti-German countries. The political possibilities towards these Marxist governments were extremely difficult. Trade policies, according to my belief, have suffered most through sins of omissions, hence the APA restricted itself more to the cultural political field. For this purpose it expanded the Nordic (Scandinavian) Society. This formerly small society has grown to be a decisive bond in the German-Scandinavian relationship since its support by the APA two years ago. The society's leader, Lohse, is selected by the APA. The offices in all sections [Gau] are headed by corresponding section chiefs [Gauleiter]. Trade groups and other organizations and branches of the party which have dealings with Scandinavia have come to agreement so that almost all of the traffic between Germany and Scandinavia today passes through the hands of the Nordic Society. The society has to date celebrated in Germany all memorial days of great Nordic scientists and artists (Hamsun, Holberg, Heidenstam) and has brought a number of Nordic conductors to Germany, as well as having furthered Nordic literature. Through its periodical "The North" [Der Norden] thoughts have been exchanged. Finally, personal relations were increasingly favored through conventions. Especially was the Convention of 1935 a complete success. This convention met under the sanctity of the Scandinavian ministers in Germany and the German ministers in Scandinavia, as far as it applied to the Nordic Music Conclave as the main purpose of the convention. The committee was composed of the authoritative Nordic Music Society. Fourteen sold out concerts and over 200 Scandinavian visitors attest to the success of the convention.
Thereupon the First National Finnish Art Exhibition came to Germany, followed by the request of the Finnish Government to the APA to hold a German exposition in Helsinki in March of 1936. These psychologically valuable affiliations have undoubtedly loosened the tension in many circles and it would do well for a clever trade policy to make use of this loosened tension, as for example, the trade treaties between England and Finland expire in 1936. The Chief of the Northern Division is my private secretary, Thilo von Trotha.
3. Southeast (Danube-Region): Since the Fuehrer (Hitler) has reserved Austria for his own, the APA has relayed on to the responsible places any reports from Austria, and has not dealt in Austrian politics. Relations with Hungary were immediately established. The APA invited Premier Gombos to Berlin in 1933 for a private visit where he was presented to the Fuehrer. The Fuehrer took him along to Erfurt to observe a review of the SA. Specific discussions were undertaken with Hungary to convince her of the futility of her demands for 100 percent revision of boundaries. Finally in August of 1935 I spoke with his excellence von Angian and made clear to him that although we well understood her own interests, the necessity that Hungary must decline its revision demands upon Yugoslavia and Rumania and address its demands to Czechoslovakia. One can assume that the Hungarians are now ready to realize the necessity of the boundary revisions as proposed.
Exceptionally long and drawn out discussions were in process with Rumania because definite measures were necessary, not because we did not wish to be intervening in Rumanian affairs without being called, but because we had to await the attitude of the Party as a result of the King of Rumania sending a friend to Berlin. Here on Rumanian soil a bitter battle was going on between the pro-French Titulesco and Jewish elements on one side against the anti-Jewish elements on the other side. The King is well aware of the fact that in the end his support of Bolshevism may cost him his throne. However, he is so intimidated by the threats of France, so as not to call for an election, and hopes only that the powers of the people, which are mounting against Titulesco, are so strong that he can support himself upon the will of the people. In order to create unity of expression the APA suggested formation of a large German-Rumanian Chamber of Commerce in Berlin. The profits of this business were not to benefit any private associates, but were to go to those groups that worked for a German-Rumanian understanding. Because of a false report of Herr von Neurath to the Fuehrer (Hitler) in which it was stated as though the action were taken in the name of the Fuehrer, the work was delayed and hindered and finally stopped, even though all of the ministers concerned had agreed to the plan. Through this many costly months were lost and the APA was forced to try other means. Since it was not possible to work with money, many conferences were arranged between the coming Premier Goga. Finally, an agreement which had been considered impossible, was concluded between Goga and the anti-Semitic leader Cuza. Cuza, upon my wish, deleted several points from his program, after which he informed us that it was necessary in the interest of his fatherland (Rumania) and a German-Rumanian understanding that he comply with my wish, as he had recognized in me an unyielding anti-Semite. I have informed the Fuehrer of the complicated later relationships in numerous reports. Germany is fighting France and Bolshevism in Rumania, and when affairs have progressed so as to warrant further discussion, the King of Rumania will invite me to a visit to discuss the matter further.
Feelers have been sent out to Belgrade through Rumania. Here also exists the possibility of splitting the "lesser entente," but as far as I can ascertain, Yugoslavia is not considering withdrawal from this alliance singly under certain guarantees, but will withdraw together with Rumania. The work in Rumania has to a part been undertaken by Herr Duckwitz, but especially by Party-Member Schickedanz.
The Near East: Next it was necessary that the position of the national socialistic movement be secured not only within the confines of the Party but also in public life. This was the more so necessary since the old Rapallo Treaty was constantly being discussed in the universities in numerous lectures. In relation with this was the Near East Ideology of Moeller van dem Brock which exerted its influence deep within the Party. The APA proceeded in the most tenacious fashion to prevent the proponents of the Rapallo school from coming to the universities, although this was not always possible. The APA prevented that instructional lectures of the School of Rapallo and Moeller van dem Brock were held within the Party and other societies. Through the Reich Ministry for the Furtherance of German Literature were issued many sharp criticisms over the eastern ideology of Moeller van dem Brock to all government and party offices. Furthermore, Dr. Leibrandt, the Chief of the Near East Division delivered several speeches on this matter to Party Conventions, student societies, and so forth. It was this activity which caused the APA to make enemies with many governmental offices until the Fuehrer in his speech of May 21 set forth the authenticity of this work and forced a withdrawal of those who opposed this activity of the APA. From there on the Near East Division has pursued the entire current Russian political activity, collected and examined current Russian reports, made an exact study of the minority feelings in Russia, and contacted anti-Soviet circles, although only for purposes of study. The Near East Division has supplied other divisions, namely the English Division with necessary material about Russia, as well as making available to the Press Division material for "Dem Voelkischen Beobachter" [official Nazi Party newspaper].
Foreign Trade: In all these political connections the question of foreign trade played an important part. Reluctantly one must say that it was just in this field, according to my view, that much opportunity has been lost. First of all, the Manchuko Incident, which came to the attention of the Fuehrer, was without question sabotaged in the worst fashion by the Foreign Offices in Berlin and Tokio. Still, it is of significance that the form of the reciprocal trade treaties which were written up by the Foreign Trade Division serve as models for many other governmental treaties. In many instances the division was able to establish order when things had been greatly neglected, as the German-Finnish Discussions (for which the chief of the Foreign Trade Division received the Finnish decoration), the German-Norwegian Wal Agreement, and a great number of other questions. Problems dealing with the foreign trade of Germany and the middle east (Turkey and Iran) were also attacked. One may say today that a very cheerful cooperation has been established in this field between the representatives of the Foreign Office and our Foreign Trade Division. The German-Rumanian question was tackled by our Foreign Trade Division during all this time, but unfortunately did not produce the desired results. The Foreign Trade Division produced a stimulus for German industry on the question of German-Russian credit. As things stood, greedy circles in heavy industry threatened the interests of the medium and small industries whom they were willing to sacrifice for the tempting Soviet business. Seventy million marks would have been lost in this deal because Russia would not accept the decisions of the Board of Arbitration, while heavy industry was willing to forego this sum. Through the intervention of the APA the situation was changed. Shortly thereafter the Board of Arbitration again met and acknowledged the claims of little and medium business, and divided among the several categories, thus saving the German Reich 70 million marks.
The Foreign Trade Division worked under the theory, that the question of foreign trade would be a rapid development, and therefore formulated exact recommendations in the discussions. The recommended foreign trade drafts, as were recommended in these discussions, were not refuted by Wagemann nor Josias Stamp in London. Opposition, however, has arisen in the Reich Ministry of Commerce, which apparently, however, has not given the matter a very exact examination. Thus the matter rests. German foreign trade has not progressed, and the forced taxation by means of export duties of over 700 million marks for German industry in 1935 can only be considered an emergency measure and not a fundamental policy. Here again the APA recommends to the Fuehrer to give these proposals a trial.