Messersmith, G.S., Berlin. Despatch No. 1234 to Secretary of State [Cordell Hull], Washington.

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 institutions and hospitals; Jewish lawyers now faring somewhat better; Berlin Bar Association favors a quota system; [Wilhelm] Furtwaengler, Berlin orchestra director wrote to Goebbels protesting dismissal of such artists as Bruno Walter, Otto Klemperer, and [Max] Reinhardt; Goebbels agreed that every real artist must be given free field in Germany; Reichswehr [regular army and navy] regards military aspects of National Socialists with disdain and oppose incorporating S.A. and S.S. into their ranks; Reichswehr conservative and cool; same situation exists between regular police force and Party police