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Rumored that Italy preparing to abandon Austria by negotiating pact with Germany; [Franz] von Papen made hurried trip to Berlin after which he called on Foreign Minister [Egon] Berger-Waldenegg; von Papen assured Minister that German newspaper attacks on Austrian Chancellor [Kurt Schuschnigg] and Vice Chancellor [Ernst] von Starhemberg would cease; he deplored Austria's decision to send no athletes to participate in Olympic games and hoped order would be rescinded; von Papen also hoped Austrian press would give less space to economic and financial situation in Germany; Foreign Minister made no definite reply; Austria still being pressured for separate agreement with Germany; important to conclude Danubian pacts speedily or Austria may be forced to yield to Germany's pressure.
Radical program of Nazis intensified during past month; more radical element of Party has upper hand; Hitler very little in Berlin; stays away from storm center while it is at its worst; [Wilhelm] Frick in recent speech demanded that Catholic and Protestant Churches incorporate themselves absolutely into National Socialist State; leaders making violent speeches; S.A. and S.S. again active; will of the Party is the only law; situation of Jews daily more critical; Jews excluded from public office, admission to professions stopped, and other means of earning a living greatly diminished; citizenship law which denies Jew the usual rights of a citizen not yet in effect, but likely to be soon; Frau Kathe Stresemann, Jewess widow of former Chancellor and Foreign Minister in very straightened circumstances; income from small trust fund greatly ...
Tyler spoke of budget reduction in Hungary and Austria and contrasted manner of handling problem in the two countries; compared [Julius de] Goemboes with Goering; both vain, fond of display, and rather stupid; Reed concerned with possibility of formation of German-Polish-Hungarian bloc with Italy leading to division of Czechoslovakia; Tyler said some important Hungarians expressed fear that when there was trouble they would be on wrong side again.
Is pleased to see Messersmith's friends rallying to his support; mentions specifically a letter which appeared in the Herald for Dec. 11.
