Subject: KSSU3IE OF COKTSSSATIOH WISH A WSLi KBOWB M1RICU1 GGHRBSPOSBEBT.

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Vienna, Jane 14, 19 M. Ho. 4. Subject: KSSU3IE OF COKTSSSATIOH WISH A WSLi KBOWB M1RICU1 GGHRBSPOSBEBT. The Honorable The Secretary of State, Washington. Sirs I have the honor to give below a resume of a conversation which I had yesterday with a well knows correspondent of an America* group of newspapers. I have known this correspondent ft* a number of years, and he la one of the vest known foreign correspondents we have, and is particularly well Informed with regard to the situation in Germany, where he has very close contact.

t. contact with the leading personalities ia and out of the present Government. He has known Hitler for years, and to my personal knowledge has very close eontaot with the leaders of the latioaal Socialist movement. I shall refer to him in this despatoh as Mr. X. Mr. X came to see me yesterday and said that he had just flown from Berlin to Vienna and that he same here to observe the reactions to the wave of bombing terror throughout Austria. On Ms arrival, Chancellor Dollfusa, hearing of it, asked him to corns to see him, and Mr* Z tame to see me immediately after Ms conversation with the Chancellor, The Chancellor informed him that he had received * personal note within the last two days from Mussolini, stating that he need have no fears with regard to the meeting whloh he was to have with Hitler, fhe Chancellor informed Mr. Z that Mussolini was eategoris in Ms assurance that he would make no arrangement with Hitler at the coming meeting which would interfere with the independence of Austria and with the support which he was giving to him. Mr. X said that although the Ohanoellor looked tired, he was obviously serene with regard to the meeting between Mussolini and Hitler, on account of this direct assurance. The Ohanoellor also told Mr, X that in view of this assurance he was otherwise satisfied with the situation. X asked Mr. X whether it was trus, as X had been informed, that the meeting between Mussolini and Hitler had been arranged through a request from German sources. Hs *

He said that this was substantially correct. He stated I that the meeting was arranged largely at the instance of Papen and von Ieurata t who, in view of the situation developing in Crermany, had tried to get Hitler t take certain action, hut ould get him to do nothing. It was impossible for them to diseuss any questions with him, and their only hope was a meeting with Mussolini, from whom Hitler would havs to hear what they wanted him to hear. Mr. X stated that both Papen and von Ifeurath had prepared memoranda on the situation in Q-ermany, which Hitler would net read, and that when they endeavored to talk with him, he would either not see them, r when the question of Austria was brought up he would g into a rage, so that the matter ould not be discussed. Mr. X was of the opinion that Hitler agreed to the meeting because he is fairly well aware of the precarious situation of the Party and of his own falling prestige and thought the meeting might possibly bring him something. He further state* that von Seurath had tried t arrange an agenda of the matters Hitler was t tak up with Mussolini, bat that up t yesterday von Neurath had not been able to see Hitler, who had left Berlin and refused to see anyone. Mr. X said that from his own knowledge of Hitler, he was sure that he was going to the meeting without a program and would trust t "inspiration". Mr. X stated that the Reiohswehr still stands entirely separate and apart from the G-overnraent and the Party, g s.

I S*»*it t, J**% foimt mi* * aft»«tft«tlftll? ##rr*#t«m atftlfti *!**% l*t* mm%im-s *** *rjmtfn *& lftarg*a F i lis l»j*t'*«*ft *f tft^ftft»n4?#s Uv^a^sii, *&«,. Is yi** of %s* *i.tu«kit#ft * ***-*$ 4IM$ l *»«,, ft** %»! & ** g#t f i*i«r i* t*** t»jt#*«ife** ftp *h*a t* i.i^ea#n asi^- ^ft#tjca» trstfe i,»fii ife#i.# «fii,i' &&$*»*» ft»tiisi *t%to HmiM&lJiJi, jrft*» w** * Sill** ««X &*»* t Si*-f»jr infest %*.*j mm.% 4, him % i *ftfw ^*» X- #!«*%#& fetes.i fc*lh. l*&jp#ia mm **a Sftwsilts fe## #r $&3**4 &*&ier&&&& a %.fe» «l***&%i*ft in $#r«* ^«^ f whiats titite f»mu a *- ***$, stad %&*% *ft*«ifetf *&&%& * t-i Is tali. *i%fe hia, fe«*#*»! titter»**»##!!»*», r **t*» 1ft* p#»%! «f :^*^ii wtt* ^f-«*i, itt»p ft* **um pi *.««* a m *» **# *&&* Hat a*l**r #«ui4 #"1!# '&t**vt**«4v SF* i WIMS * f %.te e&juti&ft lfei.i Sifl^r *&r**«$g Mt# sfeif:ili &**»,*># ti Is fairly «#11 ftwa** fft-liift$ fcr*a*3la;ft ftftd insight & &*»li& fti^isl jmni#l^i^ ferlag him umm%b,imig* i# -jfcr»&«r «**ttt4 &** * «I****** fe»d %ri*& ft* fwrfattf* as affils #1"" lia* s&#t#jf{ 311i*r *&& to l&feft af Wi.ll* ^ft»»ftllal»» % th±% a». t$ '»»«-#r4#f * ** j»#itfcr*tii! && a*f fe#*s fefei* %m #** lifel*r, *i* ji»4 A*f% S«riia «&»4.r^fui^9d %t 6#g»^^n«. St* *&;ti %'mm ffw m tei* «nra iis*wl» g# «f jiiti#» t In w*» **iaf» that h* w»i g@inc.rft.r*!'

5. able In her home. Mr. X also agreed that this contact is go close still because in spite of Hitler's realization that a more conservative course must be followed if the Party is to be saved, he is really mentally entirely in aocord and in sympathy with Goebbela, who is the representative of the most radical aspects of the movement. Mr. X further stated that he had direst information to the effect that on the question of Austria and the Jews Hitler is entirely unchanged, and that he must be familiar with the latlonal Socialist attaefes which are being mad in Austria through bombs and other outrages. Hitler has always been a believer in terror as the direct means to an end. He confirmed the information which is reaching me from other sources that the financial and economic situation is rapidly growing worse in Germany. He is of the opinion that a crisis Is approaching and that a considerable element in the Party is turning to the right, and that GSrlng is definitely associating himself with the Right, while SShm and Goebbels stand on their radical ideas. He emphasized that the Eeichswehr could be depended upon to stand behind and to help to bring in a new government oriented towards the right* It was particularly interesting that Mr. X definitely stated that ill his opinion the present Government was one which should not be given any moral or a&terial support, as it would "merely prolong the agony". He expressed the opinion that the present Government is so thoroughly unreliable that it is impossible to deal with.

*. with it or to make any agreements with it, As his eontaote with the leaders of the arty are perhaps eloser than thost) of any**oorr spoadeat, an& to my knowledge, on a friendly basis, this comment is, I believe, particularly interesting, the more so as Mr, X has nothing hut the friendliest feelings in other ways for the same men in whose word he believes no confidence can be placed. I have purposely in this despatch refrained from any cement, but hare thought it advisable to transmit Mr. I*s statements &g faithfully as X can remember them. Respectfully yours, George S. Messersmith. OSM/LGW 800.