27 SEPTEMBER 1935, Page 6

I am impressed by the estimate of the German situation

given by Herr Gregor Strasser to the Paris paper Excelsior. Herr Strasser was one of Hitler's earliest associates in the old Munich days, but also one of the sanest, which is no doubt why he broke away from the National Social- ist movement in. 1932. He declares thar the present contest is between the Nazi doctrinaires and the realist Dr. Schacht, and his prediction that Schacht will be got rid of in a few months' time, when the need for financing rearmament is over, corresponds exactly with information given me recently by a reliable German correspondent. What is more disturbing is Iitrr Strasser's belief that the unemployment which the conclusiOn of the rearmament drive will entail must leave Herr Hitler with a choice between internal 'upheaval and war—and he may cheese war.

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