RIFTS IN GERMANY

Evening Post, Volume CXXIII, Issue 112, 13 May 1937, Page 5

RIFTS IN GERMANY

OVER FOUR-YEAR PLAN

BUSINESS LEADERS' VIEWS

STRAIN BEING FELT

Past the strict German censorship ire coming rumblings of a great politi-

cal disturbance, writes Eugene Young

in the- "San Francisco Chronicle." Chancellor Hitler found it1 necessary at the .recent automobile show to warn the automobile industry that it must turn

out German cars to take the place of foreign ones or the Government would take over the task. On the other side big business has been agitating against the Hitler Four-Year Plan and the

methods Of General Goering in (regimenting • work and in distribution '.of raw materials and other manufacturing supplies. '.-'..

l ' These are but symptoms of a still peeper clash. On the one side are -those who believe that Germany must soon have- a war as a means of gaining advantages necessary for its mere living, and those who believe war ■would be suicidal until after the country had been restored to solvency and long preparations had been made. According to credible British and French information the first ilash came in January over the issue of the Spanish civil war. The radicals then favoured continuance of strong German intervention, in order to make certain of a Fascist ally on the other - side of France. Big industry and business leaders, however, opposed precipitancy triat might lead to a general .conflict, and they were backed by the "moderate army leaders. As a result Germany joined in the non-intervention echeme. ■' WAR ISSUE ARISES., ■Out of this clash arose the fundamental ; issue on early war or the presentation of a peace front for the indefinite time it may. take to get ready for a great struggle. - ■" ■ The radical faction is led by General poering. .He has believed Germany could be made self-contained for war purposes—that it could grow enough food, produce enough substitute raw materials, and store away enough reserves of things it lacks to carry on a quick, devastating attack which would bring the desired results. His plan has been to- builu an overwhelming fleet of aeroplanes which could overpower an enemy, making the way easy for the advance of the army. So he has been pushing the country into intensive production' of what he considers would be necessary for this early conflict; and, with Hitler behind him, has been trying to force industry and business .to back his plans to the limit. And, as said before, he has the •aggressive faction of the army supporting him. . ■ . ■ .';....■ On. the other hand, big business holds that Goering's ideas are unsound.. It points out that manufacture of substitutes is highly costly and that German • economy and/finance would break under .the. strain' of such a, system. It ibelieves that, the best way would be to use German efficiency to conquer jworld markets and so roll/up financial iresefyes which' could,later be used .to ]get .■necessary..;.l supplies in : large quantity;•■:.- •■■■.-" -~' ... ,'- .i F .; To accomplish this it wants to check the pace,of war preparation. The main v aim' is to' divert supplies of raw materials from war! factories —where most of them are now going—to factories, that produce goods for export. By ' this means trade could be encouraged. ■ But Armageddon would ' have to be adjourned indefinitely. CENTRED ON HITLER. Hitler is the centre of a great struggle..■."■'' Big' business is giving him warning- that under present practices there is danger of collapse of German industry and finance. Some of the leaders hold that the.country cannot stand more . than six months of the ' pressures that have been applied, coupled with, the diversion of raw materials to the war mills. He has been urged to check the radicals. But-it would be difficult for him to do so.' The Four-Year Plan was put out at the Nazi Conference at Nuremberg last autumn as his own great inspiration. In order to overcome opposition among industrialists and in the army he.put Goering in charge of it. And Goering, having got the power into bis hands and being, a masterful "person who does not hesitate even'to contradict the leader when he chooses, would be a hard man to check or control. * . • Since the issue arose, too, Goering has been busily engaged in pining the Four-Year Plan on Hitler, letting the German ■; people understand.-he is ■ merely carrying out the will of a chief who is represented as being divirfely inspired. , ' .- ~ And he leads, in this struggle, not only the aggressive army, chiefs, but the radical. Nazis who for' years have wanted to see big business taken in hand. FACTS HAVE TO BE FACED. Yet there are hard facts to be faced by the,leader. He had his first taste of them in the conferences in January. He then; had a council with all the chiefs' of the army over the project to send large reinforcements to the Spanish rebels. He was plainly told that nothing must be done which would lead the country into a general war; that the army lacked reserves of 'ammunition and weapons; that its numbers 'must be largely increased before it could face a hostile combination, and that hostilities at. this stage would ' be disastrous. Another hard fact is the comparative failure of the barter plans for trade. For a,'time Dr. Hjalmar Schacht made excellent progress with agreements in Central Europe, the Balkans, South America, and the Orient. But in practice these have not worked out. ; Also, as has been pointed out be--1 fore, the- great British-French-Ameri-can currency combination has put Germany at a great disadvantage in trade with .'the; outside world,. and nothing can be done about that unless an agreement is'reached with Paris and Loridon., ■'•■■■■ The terms of such an accord were laid before Hitler by Ambassador Joachim yon Ribbentrop after his- recent talks with Foreign- Secretary An-thony-Eden' in London. They were the- same as had been put forward at other talks:-No financial aid to a Germany that goes on arming and threatening war. Economic and financial help for a Reich that will co-operate for a. long peace. The hardest fact of all, however, Is the conviction of the.business leaders and.the; army moderates that Germany cannot keep pace with the great rearmament programme on which Britain is embarking. The prospects are that within a year or two the British will be as superior in-the air as on the sea, thus ending any hope of a quick victory for the Reich in that field. "' . ' OTHER ASPECTS. The military bearings of this factor, however, are far from being the only ones. A powerful Britain automatically discourages any who might otherwise have the idea of joining Germany in adventure. Italy might think Of uniting against France and a weak Britain, but not against two richer Jations that are arming to the teeth. An illustration of these political ef-