Box 2

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Reports further cases of molestation of American citizens in Germany; S.A. or Stahlhelm made arrests, in many cases for no apparent reason; seized passports; some victims, held two or three days, not permitted to communicate with Consulate.

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In addition to removing Jews from positions in government and the professions, National Socialists also removing non-Jews who oppose their movement; Jews who have been converted to Christianity not exempt; even a trace of Jewish blood makes them a target; many Jews leaving Germany, but few applying for American visas; most prefer to go to neighboring countries such as Holland or Switzerland to await developments and be near the property which they have left behind.

Scope and Contents Reports further on Ministry for Public Enlightenment and Propaganda; Ministry composed of seven divisions - I. Administration, II. Propaganda, III. Radio, IV. Press, V. Moving Pictures, VI. Theater, and VII. Public Education; Ministry, under [Paul Joseph] Goebbels most active of Ministries since accession to power of National Socialist Party; has been clear, decisive, effective in everything it has done in the month since its establishment; censorship complete; impossible for even...

Scope and Contents Dual government in Germany - (1) the legal and constitutional government and (2) extra legal government of National Socialist Party organization; extra legal government seems the stronger of the two and influences acts of legal government; situation creates problem in protection of interests of American citizens and firms; Foreign Service Officers must deal with the legally constituted government rather than the Party organization and it is obvious that government officials are taking orders...

Scope and Contents Reports on probable policy of Reichsbank; Dr. [Hjalmar] Schacht re-emphasizes his intention of maintaining mark at parity; 70 million dollar rediscount credit of Reichsbank being repaid for ostensible reason that relieving bank of interest charge also relieves its foreign exchange situation; Schacht insists Germany must pay all her private obligations, but implies he doesn't consider loans under Dawes and Young Plan as private loans; probably first step will be to secure reduction of...

Scope and Contents Enclosure: See No. 145. Reports efforts to protect American business interests threatened by Nazi discriminatory measures; American owned firms in Germany advised they could not sell products in Germany; other American owned firms received forms to be filled in stating (1) they are purely German firms, (2) are not owned exclusively or principally by foreigners or Jews, and (3) company not founded on Marxist principles; if forms not acceptably filled in, public works will not be allowed to...

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Enclosed with No. 144. Forms sent to American owned firms in Germany.

Scope and Contents Dr. [Moritz] Bonn forced to resign as Rector of Handele-Hochschule; Party intervention in business and business organizations continues; Party members assigned to sit with governing boards of Cologne Chamber of Commerce and Reichsverband der Deutschen Industrie, the principal organization of German industry; individual Party leaders giving orders to business and demanding removal of government officials without authority, from any central source; Jews still being removed from educational...

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Recent dispatches on the situation in Germany with respect to the Jews have been very helpful; the Department [of State] is settling down to its new organization, but is handicapped by insufficiency of higher officials.

Scope and Contents Enclosure: See No. 149. Burroughs Adding Machine Company and National Cash Register Company, American owned companies in Germany, have received forms from various municipalities and public utilities; form is a declaration that the company is (1) purely German firm, (2) not entirely or mainly owned by foreigners or Jews, and (3) not based on "Marxistic" principles; called at Ministry of Commerce to protest these further discriminatory actions; in absence of Dr. [Paul] Bang, talked with Dr....

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Enclosed with No. 148. Declaration to be filled out by American owned firms in Germany; in German, with English translation.

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Enclosed with No. 159. Translation of two items from German newspapers, one dealing with special bathing hours for Jews and the other with political and Jewish prisoners.

Scope and Contents Physical attacks on Jews still being reported though rarely in the press; one Jew in Munich severely beaten and later died of injuries; another, in Chemnitz, arrested and his body found two days later, shot through the head; an American citizen, Isaac Kahn, a Jewish representative of a St. Louis firm, received two extortion letters, threatening him with bodily harm if he didn't pay; matter reported to Consulate and then to police; police promised protection, but seemed unwilling or powerless...

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Enclosures: See Nos. 132, 137, and 138. Reports in detail case of Isaac Kahn, mentioned in No. 151; police assured Kahn of protection, but appeared powerless to act; encloses copies of August Reinecke's letters to Kahn and to the Consulate.

Scope and Contents Whatever develops in economic and financial situation in Germany is bound to have repercussions on economy of rest of the world; leaders of German government have no real economic program; in bid for power, leaders promised lower taxes, greater employment, aid to small business by taxing big business out of existence, and elimination of foreign competition; they have been advised that they cannot meet these promises without endangering whole economy; pressure from Party members to effect the...

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Calls to Moffat's attention several recent dispatches to the Department of State; thinks [Hans] Luther, German Ambassador in Washington, a servile government instrument; comments on the militaristic spirit prevalent over all Germany.

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At recent cabinet meeting, according to reliable informant, project presented for increasing Germany's military efficiency; manufacture of war materials increasing; evidence of much drilling and target practice all over Germany; German government declares it wants peace, but one senses she wants peace only to have time to strengthen her position.