precepts that he now sanctioned, following the prompting in June 1937 of the Reich Doctors’ Leader Gerhard Wagner, measures (eventually coming into effect in 1938) to ban all Jewish doctors from medical practice — a step he had regarded as inopportune when the issue had been raised in late 1933.224

But this was a rare instance of direct involvement around this time. For the most part, he was content to remain for the time being inactive in the ‘Jewish Question’. His tacit approval was all that was required. And no more was needed than his tirade against ‘Jewish Bolshevism’ at the Party Rally in September to act as a green light inviting the new antisemitic wave — even fiercer than that of 1935 — that was to unfold throughout 1938.225

After two relatively quiet years, discrimination against the Jews again intensified. Increasingly radical steps were initiated to eliminate them from the economy, and from more and more spheres of social activity. The Security Service (Sicherheitsdienst, SD), whose ‘Jewish Section’ (Judenreferat) was run by the ambitious Adolf Eichmann, had in fact since the start of the year been advocating renewed pressure on the Jews to force them out of the economy and speed up their emigration from Germany.226 The manufacture of a ‘popular mood hostile to Jews’ and the deployment of illegal ‘excesses’ — mob violence, which was seen as particularly effective — were recommended.227 By autumn, the climate was becoming more hostile than ever for the Jewish population.228 Schacht’s loss of influence, and finally his departure from the Economics Ministry on 27 November, now removed an obstacle to the ‘aryanization’ of the economy. Pressure to fulfil this aspect of the Party’s Programme mounted.229 Goring, by this time in effect in charge of the economy, was more than ready to push forward the ‘aryanization’. The upswing of the economy made big business, losing the uncertainties of the first years of Nazi rule, willing partners, eager to profit from the takeover of Jewish firms at knock-down prices.230 By April 1938 more than 60 percent of Jewish firms had been liquidated or ‘aryanized’.231 From late 1937 onwards, individual Jews also faced an expanding array of discriminatory measures, initiated without central coordination by a variety of ministries and offices — all in their way ‘working towards the Fuhrer’ — which tightened immeasurably the screw of persecution.232 Hitler’s own contribution, as usual, had largely consisted of setting the tone and providing the sanction and legitimation for the actions of others.

In world affairs, events beyond Hitler’s control were causing him to speculate on the timing and circumstances in which the great showdown would occur. By the end of 1937, the signs were that radicalization was gathering pace not just in anti-Jewish policy (and, largely instigated by the Gestapo, in the persecution and repression of other ethnic and social minorities), but also in foreign policy.233

Hitler began the year by expressing his hope to those at his lunch table that he still had six years to prepare for the coming showdown. ‘But, if a very favourable chance comes along,’ commented Goebbels, ‘he also doesn’t want to miss it.’ Hitler stressed Russian strength and warned against underestimating the British because of their weak political leadership. He saw opportunities of winning allies in eastern Europe (particularly Poland) and the Balkans as a consequence of Russia’s drive for world revolution.234 Hitler’s remarks followed a long briefing by Blomberg earlier that morning in the War Ministry about the rapid expansion of rearmament and the Wehrmacht’s preparations for ‘Case X’ — taken to be Germany, together with its fascist allies against Russia, Czechoslovakia, and Lithuania. The question of German occupation was evidently raised. Hitler, Goebbels, and Blomberg discussed the installation of senior Gauleiter as Civilian Commissars. Hitler was satisfied with what he had heard.235

A foretaste of what might be expected from the German leadership in war followed the dropping of two ‘red bombs’ on the battleship Deutschland, stationed off Ibiza, by a Spanish Republican plane on the evening of 29 May, killing twenty-three and injuring over seventy sailors. Admiral Raeder, Commander-in- Chief of the Navy, was dispatched by Blomberg to Munich to bear the brunt of Hitler’s fury. Hitler’s immediate reaction, ‘fuming with rage’, as Goebbels put it, was to bomb Valencia in reprisal. But after a hastily arranged conference with Blomberg, Raeder, Goring, and von Neurath, he ordered instead the cruiser Admiral Scheer to fire on the southern Spanish harbour town of Almeria. Hitler, seething but nervous at the outcome, paced up and down his room in the Reich Chancellery until three o’clock in the morning. The shelling of Almeria for an hour left twenty-one civilians dead, fifty-three injured, and destroyed thirty-nine houses. Hitler was satisfied. He had seen it as a prestige question. Prestige had now been restored.236

He had by this time lost faith in Spain becoming a genuinely fascist country. He saw Franco as a Spanish variant of General Seeckt (the former ‘strong man’ in the German army in the 1920s) — a military man without any mass movement behind him.237 Despite his worries about Spain, however, he had no regrets about ordering German intervention, and pointed to the many advantages which Germany had drawn from its involvement.238 Goebbels’s diary notes reflect Hitler’s wider perceptions of world affairs during the latter half of 1937, and his watchful eye on opportunities for German expansion. The radicalization in foreign policy which brought the Anschlu? with Austria and then the Sudeten crisis in Czechoslovakia in 1938 were foreshadowed in Hitler’s musings on future developments during these months.

The arch-enemy, the Soviet Union, was in Hitler’s eyes weakened both by its internal turmoils and by Japanese triumphs in the war against China.239 He was puzzled by the Stalinist purges. ‘Stalin is probably sick in the brain (gehirnkrank),’ Goebbels reported him as saying. ‘His bloody regime can otherwise not be explained. But Russia knows nothing other than Bolshevism. That’s the danger we have to smash down some day.’240 A few months later, he was repeating the view that Stalin and his followers were mad. ‘Must be exterminated (Mu? ausgerottet werden)’ was his sinister conclusion.241 He was anticipating that the opportunity might arise following a Japanese victory over China. Once China was smashed, he guessed, Tokyo would turn its attention to Moscow. ‘That is then our great hour,’ he predicted.242

Hitler’s belief in an alliance with Britain had by now almost evaporated. His attitude towards Britain had come to resemble that of a lover spurned.243 Contemptuous of the British government, he also saw Britain greatly weakened as a world power.244 Egged on by Ribbentrop, by now aggressively anti- British, and diverging sharply from the more cautious Foreign Office line that looked to a negotiated settlement in time with Britain (involving territorial revision and concession of colonies), his hopes now rested — too strongly for Goebbels’s liking — on his new friend Mussolini.245

Nothing was spared in the preparations for a huge extravaganza with all conceivable pomp and circumstance to make the maximum impact on the Duce during his state visit to Germany between 25 and 29 September. Hitler even had an aeroplane dispatched to fetch ripe pears for the Duce, concerned that there was not a sufficiently wide choice of fruit to offer his guest from southern Europe.246 Not even the torrential rain that drenched the hundreds of thousands assembled at Tempelhof on 28 September to hear speeches from the two dictators, and made it difficult for Mussolini to read his prepared German text, could damage the impression that the visit made on the Duce.247 He took home with him an image of German power and might — together with a growing sense that Italy’s role in the Axis was destined to be that of junior partner. Hitler was also overjoyed at the outcome. There had been agreement on cooperation in Spain, and on attitudes towards the war in the Far East. Hitler was certain that Italian friendship was assured, since Italy had in any case little alternative. Only the ‘Austrian Question’, on which Mussolini would not be drawn, remained open. ‘Well, wait and see,’ commented Goebbels.248

From remarks recorded by Goebbels, it is clear that Hitler was already by summer 1937 beginning to turn his eyes towards Austria and Czechoslovakia, though as yet there was no indication of when and how Germany might move against either state. Nor were ideological or military-strategic motives, however important for Hitler himself, the only ones influencing notions of expansion in central Europe. Continuing economic difficulties, especially in fulfilling the Wehrmacht’s demands for raw materials, had been the main stimulus to increased German pressure on Austria since the successful visit by Goring to Italy in January.249 Gold and foreign-currency reserves, labour supplies, and important raw materials were among the lure of a German takeover of the alpine Republic.250 Not surprisingly, therefore, the office of the Four Year Plan was at the forefront of demands for an Anschlu? as soon as possible. The economic significance of the ‘Austrian Question’ was further underlined by Hitler’s appointment in July 1937 of Wilhelm Keppler, who had served before 1933 as an important link with business leaders, to coordinate Party affairs regarding Vienna.251 Further concessions to follow on those of the 1936 agreement — including the ending of censorship on Mein Kampf — were forced on the Austrian government in July. ‘Perhaps we’re again coming a step further,’ mused Goebbels.252 ‘In Austria, the Fuhrer will some time make a tabula rasa,’

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