Extracts from a confidential report from Charles Bewley
to Joseph P. Walshe (Dublin) (43/33)

The crisis in certain articles of food, notably butter, fat, and pig flesh, continues to be acute. There appears to be no doubt that it is due in the first place to the slaughter of their beasts by the peasants in the course of the last year, and that the cause of the slaughter was the scarcity of fodder due to the restriction of imports. The extra butter allowed into Germany from Denmark and other countries does not so far appear to have made any appreciable difference.

In the last resort all these difficulties arise from the scarcity of foreign currency, which in its turn is the result of the decrease in German exports. To what extent the decrease can be ascribed to the Jewish boycott is impossible to judge, but I gather that in economic circles here the boycott is regarded very seriously. Thus, it is stated that Schacht, who was opposed to the whole of the anti-Jewish legislation promulgated at Nuremberg, recently informed the Chancellor that, although he was prepared to carry on his economic policy, he could give no guarantee whatever that it would have any success so long as the anti-Jewish measures were not modified.

While it is not at all likely that the policy of the Government will be modified in any way, a slight sign of Schacht's influence is visible in the order recently issued forbidding all individual action against Jews. It is true that a promise was given at the same time that the activities of the Jews in commerce would be restricted by law, and it would appear certain that such restriction will be drastic when it comes. Such measures would certainly be in harmony with the general public opinion, which partly as the effect of propaganda and partly as the result of the singularly provocative conduct of the Jews themselves in former years is extremely anti-Semitic.

The campaign against the Catholic Church is also being carried out with increasing bitterness. The trial of the Bishop of Meissen, together with his brother and the Vicar General Dr Soppa, is to take place this week. Nothing has as yet been published as to the details of the alleged currency smuggling. A number of priests have been imprisoned for such offences as opposing the Winter Relief Fund, etc.

As regards the Lutheran Confessional Church, very little has been published during the last weeks pending the Minister Kerrl's attempt to settle the question; but the whole atmosphere surrounding the calling up of the new recruits suggests the desire to create a fully armed Germany in the shortest possible time. The general opinion seems to be that attacks on Austria and Memel, preceded naturally by rebellions in those countries, are only a question of time, and that Germany is only waiting for the opportunity afforded by a war between England and Italy. The official propaganda to the effect that German majorities in the Memel District and in Austria are being ground down by anti-German minorities supported by foreign states is generally believed, as I discovered in conversation with various members of the S.A. and S.S. at the ceremony of transferring the bodies of those who fell in the Munich Putsch in 1923 from their graves to the Temple of Honour.

The ceremony itself was impressive, and was greeted with great enthusiasm by the S.A., S.S., and their friends who had been concentrated in Munich for the purpose. It was purely pagan, and there was throughout no suggestion that any religion existed in Germany. It is alleged in certain foreign papers that the relatives of the deceased protested against their transfer from consecrated to unconsecrated ground; if this is true, not the slightest attention was paid to their protests.

[matter omitted]

The Italian Ambassador said, amongst other things, that the war against Abyssinia had not at first been particularly popular, but that since England had intervened the Italian people were unanimous in favour of carrying it through. He said that there was now only one opinion in Italy, namely that a rich power was using its resources to prevent a poor nation from having enough to survive. He added that they had not expected that Ireland would have unconditionally supported English policy.

There is considerable satisfaction here that the German Government has refused to carry out a policy of sanctions against Italy. In the first place it is felt that Hitler's policy of leaving the League of Nations has fully justified itself by keeping Germany out of all the entanglements resulting from being a member of that body, and that Germany is in a position to carry out an entirely independent policy worthy of her position as a great power. In the second place it is expected that trade with Italy will be a permanent asset to Germany, as Italy is determined not to confer any avoidable advantages, whether in trade or otherwise, on the states which are now applying sanctions. In the third place it is in the last resort making sure of Italy as an ally if England and France should finally come to an agreement at Germany's expense.

While the man in the street is on the whole inclined to be hostile to Italy, not so much out of love for Abyssinia as because Italy 'betrayed' Germany in 1915, official and intellectual circles are coming more and more to realize that the motive behind the attack on Italy is the dislike of Communism and Social Democracy for authoritative government, and that if England and Russia succeed in humiliating Italy it will be the turn of Germany next. As I have already pointed out more than once, however great may be the discontent with the present system in Germany, if the dilemma ever arises whether it should be abolished in favour of the Second or Third International or of a Masonic democracy, there will be an almost unanimous rally in favour of Hitler and National Socialism. And, as popular opinion can be controlled and directed in Germany as easily as in a democracy like England, the opinion of the man in the street does not count.