In reply to your question as to whether the regime has undergone any noticeable change in the last few weeks, undated

Growing indication of the difficulties in the party. Germany's isolation. Men at the top realize that their actions of the last year have brought country into an impossible situation. But the extent to which they are willing to affect a change in policy is a question.

Reported that the Pope is ready to publish a White Book showing violations of the Concordat. Attempts to dissolve Catholic youth organizations and attitude of the party toward the church is alienating many.

Economic situation is worse. Wages reduced, food prices growing. Foreign market taking fewer German goods. Almost a feeling of panic in Hamburg and Bremen.

Germany's real problem is need for raw materials for which there is no capacity for payment in the foreign exchange.