The announcement of the Four-Year Plan at the Nuremberg Party Rally in September had by then pushed rearmament policy on to a new plane. Priorities had been established. They meant in practice that balancing consumer and rearmament spending could only be sustained for a limited period of time through a crash programme which maximized autarkic potential to prepare Germany as rapidly as possible for the confrontation which Hitler deemed inevitable and other leading figures in the regime thought probable, if not highly likely, within the following few years. Through the introduction of the Four-Year Plan, Germany was economically pushed in the direction of expansion and war. Economics and ideology were by now thoroughly interwoven. Even so, the decision to move to the Four-Year Plan was ultimately an ideological one. Economic options were still open – even if the policies of the previous three years meant they had already narrowed sharply. Schacht, Goerdeler, and others, backed by important sectors of industry, favoured a retreat from an armaments-led economy to a re-entry into international markets. Against this, the powerful IG-Farben lobby, linked to the Luftwaffe, pressed for maximizing production of synthetic fuels. The stalemate persisted throughout the summer. The economic crisis which had dogged Germany during the previous winter and spring was unresolved. With no end to the dispute in sight, Hitler was pressed in late August to take sides. The preoccupation with Bolshevism, which had weighed heavily with him throughout the summer, was decisive in his own inimitable approach to Germany’s economic problems.
The driving-force behind the creation of what came to be known as the Four-Year Plan was not, however, Hitler but Göring. Following their discussions in Berchtesgaden and Bayreuth in July, Hitler had requested reports from Göring on the economic situation, and how the problems were to be overcome. At the beginning of August Göring had in turn demanded memoranda from different branches of the economy to be sent to him as rapidly as possible. The timing was determined by propaganda considerations, not economic criteria: the proximity of the Reich Party Rally in early September was what counted. The complex reports could not be put together as swiftly as Göring had wanted. By the time he travelled to Berchtesgaden at the beginning of the last week in August, he had only a survey from his Raw Materials and Currency staff about the possibilities of synthetic raw-material production within Germany to hand. He had meanwhile been encountering powerful opposition to his economic plans from Schacht, who was voicing feelings in some important sectors of business and industry. Carl Goerdeler, too, Lord Mayor of Leipzig, who had served Hitler as Reich Price Commissioner and would eventually become a leading opponent of the regime, joined in the criticism towards the end of the month. It was in these circumstances that Hitler was persuaded during the last week of August to dictate a lengthy memorandum on the future direction of the economy – one of the extremely rare occasions in the Third Reich (leaving aside formal laws, decrees, and directives) that he put forward his views in writing.
The memorandum fell into two parts. The first, on ‘the political situation’, was pure Hitler. It was couched exclusively in ideological terms. The ‘reasoning’ was, as it had been in Mein Kampf and the Second Book, social-Darwinist and racially determinist. ‘Politics are the conduct and course of the historical struggle for life of peoples,’ he began. ‘The aim of these struggles is the assertion of existence.’ The world was moving towards a new conflict, centred upon Bolshevism, ‘whose essence and aim … is solely the elimination of those strata of mankind which have hitherto provided the leadership and their replacement by world-wide Jewry.’ Germany would be the focus of the inevitable showdown with Bolshevism. ‘It is not the aim of this memorandum to prophesy the time when the untenable situation in Europe will become an open crisis. I only want, in these lines, to set down my conviction that this crisis cannot and will not fail to arrive,’ he asserted. ‘A victory of Bolshevism over Germany would lead not to a Versailles Treaty but to the final destruction, indeed to the annihilation, of the German people … In face of the necessity of defence against this danger, all other considerations must recede into the background as being completely irrelevant.’
The second part of the memorandum, dealing with ‘Germany’s economic situation’, and offering a ‘programme for a final solution of our vital need’, bore unmistakable signs of Göring’s influence, resting in turn on the raw material programmes drawn up by his planning staff, with significant input by IG Farben. The resemblance to statements on the economy put forward by Göring earlier in the summer suggests that Hitler either had such statements before him when compiling his memorandum, or that his Raw Materials Commissar worked alongside him in preparing the memorandum. The tone was nonetheless classically Hitlerian – down to the threat of a law ‘making the whole of Jewry liable for all damage inflicted by individual specimens of this community of criminals upon the German economy’, a threat put into practice some two years later.
A temporary solution to the economic problems was to be found in partial autarky. Maximizing domestic production wherever possible would allow for the necessary food imports, which could not be at the cost of rearmament. Fuel, iron, and synthetic-rubber production had to be stepped up. Cost was irrelevant. Objections – and the opposition voiced in the previous weeks – were taken on board and brushed aside. The nation did not live for the economy; rather, ‘finance and the economy, economic leaders and theories must all exclusively serve this struggle for self-assertion in which our people are engaged’. The Ministry of Economics had simply to set the national economic tasks; private industry had to fulfil them. If it could not do so, the National Socialist state, Hitler threatened, would ‘succeed in carrying out this task on its own’. Though Germany’s economic problems, the memorandum asserted, could be temporarily eased through the measures laid down, they could only finally be solved through the extension of ‘living space’. It was ‘the task of the political leadership one day to solve this problem’. The memorandum closed by advocating a ‘Several Years Plan’ – the term ‘Four-Year Plan’was not mentioned in the document – to maximize self-sufficiency in existing conditions and make it possible to demand economic sacrifices of the German people. In the next four years, the German army had to be made operational, the economy made ready for war.
Hitler’s way of argumentation was characteristic. The inflexibility of its ideological premisses coupled with the very broadness of its dogmatic generalities made it impossible for critics to contest it outright without rejection of Hitler himself and his ‘world-view’. This ‘world-view’, whatever tactical adjustments had proved necessary, showed again its inner consistency in the central place assigned to the coming showdown with Bolshevism – an issue which, as we have seen, preoccupied Hitler throughout 1936.
Göring got what he wanted out of Hitler’s memorandum. Armed with Hitler’s backing, he was able to determine his supremacy in the central arena of the armaments economy. Schacht recognized the scale of the defeat he had suffered. Hitler was reluctant to drop him because of the standing he enjoyed abroad. But his star was now waning fast. Alternative policies to that advanced in Hitler’s memorandum could now be condemned out of hand.
Hitler – in so far as he had given any consideration at all to organizational matters – had, it appears, simply imagined that Göring would work through only a small bureaucracy and function as an overlord in coordinating economic policy with the relevant ministries, which would retain their specific responsibilities. Instead, Göring rapidly improvised a panoply of ‘special commissioners’, backed by their own bureaucratic apparatus, for different facets of the Four-Year Plan, often without clear lines of control, not infrequently overlapping or interfering with the duties of the Ministry of Economics, and all of course answerable to Göring himself. It was a recipe for administrative and economic anarchy.
But the momentum created by the Four-Year Plan was immense. All areas of the economy were affected in the following peacetime years. The resulting pressures on the economy as a whole were not sustainable indefinitely. T
he economic drive created its own dynamic which fed directly into Hitler’s ideological imperative. The ambitious technocrats in the offices and sub-organizations of the Four-Year Plan, not least the leaders of the rapidly expanding chemicals giant IG-Farben, were in their own way – whatever their direct motivation – also ‘working towards the Führer’. Territorial expansion became necessary for economic as well as for ideological reasons. And racial policy, too, was pushed on to a new plane as the spoils to be gained from a programme of ‘aryanization’ were eagerly seized upon as easy pickings in an economy starting to overheat under its own, self-manufactured pressures.
When Hitler drew up his memorandum in late August 1936 all this was in the future. He had no clear notion himself of how it would all unfold. Nor was he specially interested in such questions. Propaganda concerned him more immediately than economics in drawing up the memorandum. He needed the new economic programme as the cornerstone of the Party Rally. His big speech there on the economy was closely based, occasionally word for word, on his August memorandum. He now spoke publicly for the first time of a ‘new Four-Year Programme’ (recalling his initial ‘four-year plan’ put forward immediately after his appointment as Chancellor in 1933). The designation ‘Four-Year Plan’ rapidly caught on in the German press. It became officially so called some weeks later, on 18 October, with Hitler’s ‘Decree for the Implementation of the Four-Year Plan’.
IV
In the foreign-policy arena, the shifts which had begun during the Abyssinian crisis were hardening across the summer and autumn of 1936. Clearer contours were beginning to emerge. Diplomatic, strategic, economic, and ideological considerations – separable but often closely interwoven – were starting to take Germany into more dangerous, uncharted waters. The possibility of a new European conflagration – however unimaginable and horrifying the prospect seemed to most of the generation that had lived through the last one – increasingly appeared a real one.
The long-desired alliance with Britain, which had seemed a real possibility in June 1935 at the signing of the Naval Pact, had remained elusive. It was still a distant dream. The Abyssinian crisis and the reoccupation of the Rhineland, now the Spanish Civil War, had all provided hurdles to a closer relationship despite German efforts to court those they imagined had power and influence in Britain and some British sympathizers in high places. Ribbentrop, appointed in the summer an unwilling Ambassador to London with a mandate from Hitler to bring Britain into an anti-Comintern pact, had since his triumph with the Naval Agreement become increasingly disillusioned about the prospects of a British alliance. Hitler saw the abdication on 11 December 1936 of King Edward VIII, in the face of opposition in Britain to his proposed marriage to a twice-divorced American, Mrs Wallis Simpson, as a victory for those forces hostile to Germany. Ribbentrop had encouraged him in the view that the King was pro-German and anti-Jewish, and that he had been deposed by an anti-German conspiracy linked to Jews, freemasons, and powerful political lobbies. By the end of the year, Hitler had become more lukewarm about a British alliance. Germany, he concluded, had its interests better served by close ties with Italy.
The rapprochement with Italy – slow and tenuous in the first half of 1936 – had by then come to harden into a new alliance of the two fascist-style militaristic dictatorships dominating central and southern Europe. The Abyssinian crisis, as we noted, had turned Italy towards Germany. The repercussions on Austria were not long in the waiting. Deprived de facto of its Italian protector, Austria was swept inevitably further into the German slipstream. Encouraged by the Italians as well as put under pressure by the Germans, Austria was ready by 11 July 1936 to sign a wide-ranging agreement with Germany, improving relations, ending restrictions placed upon the German press, and upon economic and cultural activities within Austria. Though recognizing Austrian independence, the agreement in reality turned the Reich’s eastern neighbour into an economic and foreign-policy dependency. It was a development which by this time suited both Germany and Italy. And within weeks, the aid provided by the two dictatorships to the nationalist rebels in Spain, and the rapidly deepening commitment to the Spanish Civil War, brought Italy and Germany still closer together.
The diplomatic benefits from closer ties with Italy were reinforced in Hitler’s own eyes by the anti-Bolshevik credentials of Mussolini’s regime. In September, he made overtures to Mussolini through his envoy Hans Frank, inviting the Duce to visit Berlin the following year – an invitation readily accepted. There was agreement on a common struggle against Communism, rapid recognition of a Franco government in Spain,
German recognition of the annexation of Abyssinia, and Italian ‘satisfaction’ at the Austro-German agreement.
Hitler was in effusive mood when he welcomed Mussolini’s son-in-law, the vain Count Ciano, to Berchtesgaden on 24 October. He described Mussolini as ‘the leading statesman in the world, to whom none may even remotely compare himself ’. There was no clash of interests between Italy and Germany, he declared. The Mediterranean was ‘an Italian sea’. Germany had to have freedom of action towards the East and the Baltic. He was convinced, he said, that England would attack Italy, Germany, or both, given the opportunity and likely chances of success. A common anti-Bolshevik front, including powers in the East, the Far East, and South America, would however act as a deterrent, and probably even prompt Britain to seek an agreement. If Britain continued its offensive policy, seeking time to rearm, Germany and Italy had the advantage both in material and psychological rearmament, he enthused. In three years, Germany would be ready, in four years more than ready; five years would be better still.
In a speech in the cathedral square in Milan a week later, Mussolini spoke of the line between Berlin and Rome as ‘an axis round which all those European States which are animated by a desire for collaboration and peace can revolve’. A new term was coined: ‘Axis’ – whether in a positive or negative sense – caught the imagination. In Italian and German propaganda, it evoked the might and strength of two countries with kindred philosophies joining forces against common enemies. For the western democracies, it raised the spectre of the combined threat to European peace by two expansionist powers under the leadership of dangerous dictators.
The menacing image became global when, within weeks of the formation of the Axis, Hitler entered a further pact with the one power outside Italy he had singled out in his August memorandum as standing firm against Bolshevism: Japan. The driving force behind the pact, from the German side, had from the beginning been Ribbentrop, operating with Hitler’s encouragement. The professionals from the German Foreign Office, far more interested in relations with China, found themselves largely excluded, as ‘amateurs’ from the Dienststelle Ribbentrop (Ribbentrop Bureau) – the agency for foreign affairs founded in 1934, by now with around 160 persons working for it, upon which Hitler was placing increasing reliance – made the running.
The Japanese military leaders saw in a rapprochement with Berlin the chance to weaken German links with China and gain a potential ally against the Soviet Union. On 27 November 1936 Hitler approved what became known as the Anti-Comintern Pact (which Italy joined a year later), under whose main provision – in a secret protocol – neither party would assist the Soviet Union in any way in the event of it attacking either Germany or Japan. The pact was more important for its symbolism than for its actual provisions: the two most militaristic, expansionist powers in the world had found their way to each other. Though the pact was ostensibly defensive, it had hardly enhanced the prospects for peace on either side of the globe.
In his Reichstag speech on 30 January 1937, celebrating the fourth anniversary of his takeover of power, Hitler announced that ‘the time of the so-called surprises’ was over. Germany wished ‘from now on in loyal fashion’ as an equal partner to work with other nations to overcome the problems besetting Europe. This pronouncement was soon to prove even more cynical than it had appeared at the time. That further ‘surprises’ were inevitable – and not long p
ostponed – was not solely owing to Hitler’s temperament and psychology. The forces unleashed in four years of Nazi rule – internal and external – were producing their own dynamic. Those in so many different ways who were ‘working towards the Führer’ were ensuring, directly or indirectly, that Hitler’s own ideological obsessions served as the broad guidelines of policy initiatives. The restlessness – and recklessness – ingrained in Hitler’s personality reflected the pressures for action emanating in different ways from the varied components of the regime, loosely held together by aims of national assertiveness and racial purity embodied in the figure of the Leader. Internationally, the fragility and chronic instability of the post-war order had been brutally exposed. Within Germany, the chimeric quest for racial purity, backed by a leadership for which this was a central tenet of belief, could, if circumstances demanded, be contained temporarily, but would inevitably soon reassert itself to turn the screw of discrimination ever tighter. The Nazi regime could not stand still. As Hitler himself was to comment before the end of the year, the alternative to expansion – and to the restless energy which was the regime’s lifeblood – was what he called ‘sterility’, bringing in its wake, after a while, ‘tensions of a social kind’, while failure to act in the near future could bring internal crisis and a ‘weakening point of the regime’. The bold forward move, Hitler’s trademark, was intrinsic to Nazism itself.
V
To most observers, both internal and external, after four years in power the Hitler regime looked stable, strong, and successful. Hitler’s own position was untouchable. The image of the great statesman and national leader of genius manufactured by propaganda matched the sentiments and expectations of much of the population. The internal rebuilding of the country and the national triumphs in foreign policy, all attributed to his ‘genius’, had made him the most popular political leader of any nation in Europe. Most ordinary Germans – like most ordinary people anywhere and at most times – looked forward to peace and prosperity. Hitler appeared to have established the basis for these. He had restored authority to government. Law and order had been re-established. Few were concerned if civil liberties had been destroyed in the process. There was work again. The economy was booming. What a contrast this was to the mass unemployment and economic failure of Weimar democracy. Of course, there was still much to do. And many grievances remained. Not least, the conflict with the Churches was the source of great bitterness. But Hitler was largely exempted from blame. The negative features of daily life, most imagined, were not of the Führer’s making. They were the fault of his underlings, who frequently kept him in the dark about what was happening.