Messersmith, G.S., Vienna. To William Phillips, Washington.

Hitler may pretend to steer a more moderate course for economic reasons, but Nazi policies have not and will not change; Hitler talks peace, but rearming at tremendous rate; many well-meaning people, even from U.S., go to Germany for brief visit and get entirely incorrect picture; talked this morning with Senator [Joseph T.] Robinson who has just been in Germany and had talk with Hitler; Robinson not in sympathy with National Socialism but Hitler seems to have convinced him of his sincerity in desiring to follow more moderate course; German government may be planning certain declarations and actions to get out of economic and financial impasse; prominent Jewish friend from U.S. recently visited Germany and was told that government was changing its attitude radically on Jewish question; no faith should be placed in change of attitude either on Jewish question or Austrian question; government may change to more indirect tactics, but does not indicate change of attitude or policy; death of President Hindenburg creates serious situation; as long as he was alive army's oath of allegiance was to him and army might have taken action against Nazis without breaking oath; now they must swear allegiance to Hitler; situation similar to one in Argentina [in 1928-1929] when Argentine army wished to overthrow the corrupt [Hip??lito] Irigoyen government but were prevented for months because of oath of allegiance; endeavor may be made to maintain German regime through following more moderate policy and yet retain Hitler; nothing along that line spells safety and peace for Europe; best policy for U.S. is to continue negative attitude - no moral support for Germany, no credits, and no trade agreement