In January 1937 Schacht, in a conversation with Ambassador Davies, at least by inference threatened a breach of the peace in demanding a colonial cession. I offer in evidence Document L-111, being Exhibit Number USA-630, and consisting of excerpts from a report under date of 20 January 1937, by Ambassador Davies to the Secretary of State. I wish to read therefrom, beginning with the second sentence of the second paragraph:
“He”—meaning Schacht—“stated the following:
“That the present condition of the German people was intolerable, desperate, and unendurable; that he had been authorized by his Government to submit proposals to France and England which would: (1) Guarantee European peace, (2) secure present European international boundaries, (3) reduce armaments, (4) establish a new form of a workable league of nations, and (5) abolish sanctions with new machinery for joint administration; all based upon a colonial cession that would provide for Germany an outlet for population, a source for foodstuffs, fats, and raw materials.”
In December 1937 Ambassador Dodd noted in his diary that Schacht would be willing to risk war for the sake of new territory in Europe. I refer the Tribunal to Document EC-461, consisting of excerpts from Ambassador Dodd’s diary.
THE PRESIDENT: The proposal contained in Document L-111 was for cession of colonies, was it not?
LT. BRYSON: It was, Sir.
I turn now to Document EC-461, consisting of excerpts from Ambassador Dodd’s diary. The entire diary has previously been received in evidence as Exhibit Number USA-58. I quote some notes on a conversation with Schacht on 21 December 1937, beginning near the bottom of the second page of Document EC-461, in the last paragraph:
“Schacht meant what the army chiefs of 1914 meant when they invaded Belgium, expecting to conquer France in 6 weeks; that is, domination and annexation of neighboring little countries, especially north and east. Much as he dislikes Hitler’s dictatorship, he, like most other eminent Germans, wishes annexation without war if possible; with war if the United States will keep hands off.”
THE PRESIDENT: There is another passage in that book, that diary. I am not sure; it probably is not the same date, but it is on the first page of the exhibit, I think—the third paragraph.