To the German public, Hitler once more professed himself a man of peace, cleverly insinuating who was to blame for the gathering storm-clouds of war. Speaking to a vast audience in the Berlin Lustgarten (a huge square in the city centre) on 1 May – once an international day of celebration of labouring people, now redubbed ‘National Labour Day’ – he posed the rhetorical question: ‘I ask myself,’ he declared, ‘who are then these elements who wish to have no rest, no peace, and no understanding, who must continually agitate and sow mistrust? Who are they actually?’ Immediately picking up the implication, the crowd bayed: ‘The Jews.’ Hitler began again: ‘I know…,’ and was interrupted by cheering that lasted for several minutes. When at last he was able to continue, he picked up his sentence, though – the desired effect achieved – now in quite different vein: ‘I know it is not the millions who would have to take up weapons if the intentions of these agitators were to succeed. Those are not the ones… ‘7
The summer of 1936 was, however, as Hitler knew only too well, no time to stir up a new antisemitic campaign. In August, the Olympic Games were due to be staged in Berlin. Sport would be turned into a vehicle of nationalist politics and propaganda as never before. Nazi aesthetics of power would never have a wider audience. With the eyes of the world on Berlin, it was an opportunity not to be missed to present the new Germany’s best face to its hundreds of thousands of visitors from across the globe. No expense or effort had been spared in this cause. The positive image could not be endangered by putting the ‘dark’ side of the regime on view. Open anti-Jewish violence, such as had punctuated the previous summer, could not be permitted. With some difficulties, antisemitism was kept under wraps. Manifestations thought distasteful for foreign visitors, such as anti-Jewish notices – ‘Jews not wanted here’, and other vicious formulations – at the roadside at the entry to towns and villages, had already been removed on Hitler’s orders at the insistence of Count Henri Baillet-Latour, the Belgian President of the International Olympic Committee, before the commencement the previous February of the Winter Olympics in the Bavarian alpine resort of Garmisch-Partenkirchen.8 The antisemitic zealots in the Party had temporarily to be reined in. Other objectives were for the time being more important. Hitler could afford to bide his time in dealing with the Jews.
Frenetic building work, painting, renovation, and refurbishment aimed at offering the most attractive appearance possible to Berlin, the city of the Games.9 The centre-point was the new Olympic Stadium. Hitler had angrily denounced the original plans of the architect Werner March as a ‘modern glass box’, and, in one of his usual childlike temper tantrums, had threatened to call off the Olympics altogether. It was probably a device to make sure he got his own way. And like pandering to a spoilt child, those around him made sure he was not disappointed. Speer’s rapidly sketched more classically imposing design immediately won his favour.10 Hitler was more than assuaged. Now fired with enthusiasm, he demanded at once that it should be the biggest stadium in the world – though even when under construction, and outstripping the size of the previous largest stadium at Los Angeles, built for the 1932 Games, he complained that everything was too small.11
The whole of Berlin was wreathed in swastika banners on 1 August as the arrival of the Olympic torch signalled, amid spectacular ceremonial, the commencement of the XIth modern Olympiad – Hitler’s Olympics. Overhead, the massive airship Hindenburg trailed the Olympic flag. In the stadium, a crowd of 110,000 people had assembled in great expectation. Over a million others, it was estimated, unable to get tickets, lined the Berlin streets for a glimpse of their Leader as a cavalcade of black limousines conveyed Hitler with other dignitaries and honoured guests to the newly designed high temple of sport. As he entered the great arena that afternoon, a fanfare of thirty trumpets sounded. The world-famous composer Richard Strauss, clad in white, conducted a choir of 3,000 in the singing of the national anthem, ‘Deutschland, Deutschland über alles’, and the Nazi Party’s own anthem, the ‘Horst-Wessel-Lied’, before conducting the new ‘Olympic Hymn’ which he had composed specially for the occasion. As the music faded, the giant Olympic bell began to toll, announcing the parade of the competing athletes that then followed. Many national delegations offered the Nazi salute as they passed Hitler’s dais; the British and Americans demonstrably refrained from doing so.12 All around the stadium, cameras whirred. The camera teams of Leni Riefenstahl, the talented director who, after her success in filming the 1934 Party Rally, had been commissioned to produce a film on the Olympics, had been installed in numerous strategic positions, accumulating their material for a celluloid record of the stirring events.13
At last, the opening ceremonials out of the way, the Games were under way. During the following two weeks, a glittering display of sporting prowess unfolded. Amid the notable achievements in the intense competition, none compared with the towering performance of the black American athlete Jesse Owens, winner of four gold medals. Hitler, famously, did not shake Owens’s hand in congratulation. It had not, in fact, been intended that he should congratulate Owens or any other winners. He had indeed, though this had apparently not been foreseen by the organizers, shaken the hands of the medal winners on the first day – Finnish and German. Once the last German competitors in the high jump had been eliminated that evening, he had left the stadium in the gathering dusk before completion of the event, which had been delayed and was running late. Whether a deliberate snub or not, this prevented him having to decide whether to shake the hands of Cornelius Johnson and David Albritton, two black Americans who came first and second in the high jump. But Jesse Owens did not compete in a final that day. And before he won any of his medals, Count Baillet-Latour had politely informed Hitler that as a guest of honour of the Committee, if the most important one, it was not in line with protocol for him to congratulate the winners. Thereafter, he congratulated none.14 He was, therefore, in no position to offer a direct affront to Owens when the American sprinter won the first of his gold medals next day for the 100 metres dash. That he would nevertheless have been prepared to snub Owens can be inferred from what he apparently said to Baldur von Schirach, the Hitler Youth leader: that the Americans should be ashamed at letting their medals be won by negroes, and that he would never have shaken hands with one of them. At Schirach’s suggestion that he be photographed alongside Jesse Owens, Hitler was said to have exploded in rage at what he saw as a gross insult.15
Alongside the sporting events, the Nazi leadership lost no opportunity to impress prominent visiting dignitaries with extravagant shows of hospitality. Joachim von Ribbentrop, just appointed by Hitler to be the new Ambassador in London, entertained hundreds of important foreign guests in lavish style at his elegant villa in Dahlem. Reich Propaganda Minister Joseph Goebbels threw a huge reception with an Italian theme and spectacular fireworks display for over 1,000 notable visitors – more than half of them from abroad – on the lovely Pfaueninsel (Peacock Island) in the Havel (the wide expanse of water to the west of Berlin), linked for the occasion to the mainland by specially built pontoon bridges. Hermann Göring, head of the Luftwaffe and recognized as the second man in the state, outdid all others in his festive extravaganza. The well-heeled and highly impressionable British Conservative Member of Parliament Sir Henry ‘Chips’ Channon, then in his late thirties, attended an unforgettable party: ‘I don’t know how to describe this dazzling crowded function,’ he confided to his diary. ‘We drove to the Ministerium’ – the Air Ministry in Berlin, where Göring’s own palatial residence was housed – ‘and found its great gardens lit up and 700 or 800 guests gaping at the display and the splendour. Goering, wreathed in smiles and orders and decorations received us gaily, his wife at his side… Towards the end of dinner a corps de ballet danced in the moonlight: it was the loveliest coup-d’œil imaginable, and there were murmurs of delighted surprise from all the guests… The end of the garden was in darkness, and suddenly, with no warning, it was floodlit and a procession of white horses, donkeys and pea
sants, appeared from nowhere, and we were led into an especially built Luna Park. It was fantastic, roundabouts, cafés with beer and champagne, peasants dancing and “schuhplattling” vast women carrying bretzels and beer, a ship, a beerhouse, crowds of gay, laughing people, animals… The music roared, the astonished guest[s] wandered about. “There has never been anything like this since the days of Louis Quatorze,” somebody remarked. “Not since Nero,” I retorted… ‘16
However magnificent the stadium, however spectacular the ceremonials, however lavish the hospitality, it would have been embarrassing for Hitler, and for national pride, had the German performance at the Games been a poor one. There was no need for concern. The German athletes – much to Hitler’s delight – turned the Games into a national triumph. They won more medals than the athletes of any other country.17 This did nothing to harm the nation’s belief in its own superiority.18
Above all, the Olympics were an enormous propaganda success for the Nazi regime. Hitler attended almost every day – underlining the significance of the Games – the crowd rising in salute each time he entered the stadium.19 The German media coverage was massive. Over 3,000 programmes were transmitted worldwide in around fifty languages; over 100 radio stations in the USA alone took transmission; they were even the first Games to be shown on television – though the coverage, confined to Berlin, gave out only fuzzy pictures.20 Almost 4 million spectators had watched the games (spending millions of Reich Marks for the privilege).21 Many more millions had read reports of them, or seen newsreel coverage. And of paramount importance: Hitler’s Germany had been open to viewing for visitors from all over the world. Most of them went away mightily impressed.22 ‘I’m afraid the Nazis have succeeded with their propaganda,’ noted the American journalist William Shirer. ‘First, they have run the games on a lavish scale never before experienced, and this has appealed to the athletes. Second, they have put up a very good front for the general visitors, especially the big businessmen.’23 An outsider within Germany, the Jewish philologist Victor Klemperer, living in Dresden, took a similarly pessimistic view. He saw the Olympics as ‘wholly and entirely a political affair… It’s incessantly drummed into the people and foreigners that here you can see the revival (Aufschwung), the blossoming, the new spirit, the unity, the steadfastness, the glory, naturally too the peaceful spirit of the Third Reich lovingly embracing the whole world.’ The anti-Jewish agitation and warlike tones had disappeared from the newspapers, he noted, at least until 16 August – the end of the Games. Guests were repeatedly reminded of the ‘peaceful and joyful’ Germany in stark contrast to the pillage and murder carried out (it was claimed) by ‘Communist hordes’ in Spain.24 The enthusiastic Hitler Youth activist Melita Maschmann later recalled young people returning to their own countries with a similar positive and peaceful image of Germany. ‘In all of us,’ she remembered, ‘there was the hope in a future of peace and friendship.’25 In her eyes and those of the many sharing her enthusiasm, it was a future which had no place for the Victor Klemperers and others regarded as racial misfits. In any case, the expectations of peaceful coexistence would reveal themselves only too soon as no more than pipe-dreams.
Away from the glamour of the Olympic Games and out of the public eye, the contrast with the external image of peaceful goodwill was sharp. By this time, the self-induced crisis in the German economy arising from the inability to provide for both guns and butter – to sustain supplies of raw materials both for armaments and for consumption – was reaching its watershed. A decision on the economic direction the country would take could not be deferred much longer. The outcome in the summer of 1936 was an economic policy geared inexorably to expansion, making international conflict all the more certain. By then, the outbreak of the Spanish Civil War had already started to move Europe closer towards explosion.
II
By the spring, it had become clear that it was no longer possible to reconcile the demands of rapid rearmament and growing domestic consumption. Supplies of raw materials for the armaments industry were by then sufficient for only two months.26 Fuel supplies for the armed forces were in a particularly critical state.27 Economics Minister Hjalmar Schacht was by now thoroughly alarmed at the accelerating tempo of rearmament and its inevitably damaging consequences for the economy. Only a sharp reduction in living standards (impossible without endangering the regime’s stability) or a big increase in exports (equally impossible given the regime’s priorities, exchange rate difficulties, and the condition of external markets) could in his view provide for an expanding armaments industry. He was adamant, therefore, that it was time to put the brakes on rearmament.28
The military had other ideas. The leaders of the armed forces, uninterested in the niceties of economics but fully taken up by the potential of modern advanced weaponry, pressed unabatedly for rapid and massive acceleration of the armaments programme. Within weeks of the reoccupation of the Rhineland, General Ludwig Beck, Chief of the General Staff of the army, had come up with plans to expand the thirty-six divisions envisaged in March 1935, when military service was reintroduced, into forty-one divisions. By the summer, the projections had been worked out for an army to be bigger in 1940 than the Kaiser’s war army had been in 1914.29
The army leaders were not acting in response to pressure from Hitler. They had their own agenda. They were at the same time ‘working towards the Führer’, consciously or unconsciously acting ‘along his lines and towards his aim’ (in phrases tellingly used by one Nazi official in a speech two years earlier, hinting at how the dynamic of Nazi rule operated)30 in the full knowledge that their rearmament ambitions wholly coincided with Hitler’s political aims, and that they could depend upon his backing against attempts to throttle back on armament expenditure. Reich War Minister Werner von Blomberg, Colonel-General Werner Freiherr von Fritsch, Commander-in-Chief of the Army, and his Chief of Staff, Beck, were thereby paving the way, in providing the necessary armed might, for the later expansionism which would leave them all trailing in Hitler’s wake.31
Even so, the economic impasse seemed complete. Huge increases in allocation of scarce foreign currency were demanded by both the Ministry of Food and the Ministry of Armaments.32 The position could not be sustained. Fundamental economic priorities had to be established as a matter of urgency. Autarky and export lobbies could not both be satisfied. Hitler remained for months inactive. He had no patent solution to the problem. The key figure at this point was Göring.
Several factors contributed to Göring’s arrival centre-stage in the arena of economic policy: his own insatiable drive to aggrandizement of power; his involvement the previous autumn when acting as Hitler’s troubleshooter in a dispute between Schacht and Richard Walther Darre, Reich Minister for Food and Agriculture, over the allocation of scarce foreign currency to import food products in short supply instead of for raw materials needed by the expanding armaments industries; Schacht’s attempt to use him as a barrier against Party intrusions into the economic sphere; the increasing desperation of Blomberg about the raw-materials crisis in armaments production which eventually forced him to back the power pretensions of the Luftwaffe chief; and not least Hitler’s patent reluctance to become involved, especially if it meant taking decisions in opposition to Party demands.33 Blomberg had been pressing for months for a ‘Fuel Commissar’. Schacht’s repeated rejection of the proposition, realizing the threat to his own sphere of competence, opened the door for Göring, as Air Minister and head of the Luftwaffe, to demand that the Fuel Commissar be answerable to him. Then in March 1936, as the fuel shortage reached crisis-point, Göring decided to put himself forward as ‘Fuel Dictator’.34 Keen for different reasons to block Göring’s ambitions, Schacht and Blomberg tried to tie him down within the framework of a four-man commission involving the three of them and Reich Minister Hanns Kerrl (a close ally of Göring to whom Hitler had assigned a role in economic affairs in spring 1936) to tackle the foreign-exchange crisis.35 Hoping to keep the party off his back, Schacht hel
ped persuade Hitler to install Göring at the beginning of April as Plenipotentiary for the Securing of the Raw Materials and Foreign Exchange Demands of the Reich. Göring’s brief was to overcome the crisis, get rearmament moving again, and force through a policy of autarky in fuel production.36 But by now Göring was in the driving-seat. Schacht was rapidly becoming yesterday’s man. In May, shocked at the new power-base that his own Machiavellian manoeuvrings had unwittingly helped to create for Göring, the Economics Minister protested to Hitler. Hitler waved him away. He did not want anything more to do with the matter, he was reported as telling Schacht, and the Economics Minister was advised to take it up with Göring himself.37 ‘It won’t go well with Schacht for much longer,’ commented Goebbels. ‘He doesn’t belong in his heart to us.’ But Göring, too, he thought would have difficulties with the foreign-exchange and raw-materials issue, pointing out: ‘He doesn’t understand too much about it.’38
It was not necessary that he did. His role was to throw around his considerable weight, force the pace, bring a sense of urgency into play, make things happen. ‘He brings the energy. Whether he has the economic know-how and experience as well? Who knows? Anyway, he’ll do plenty of bragging,’ was Goebbels’s assessment.39
Göring soon had a team of technical experts assembled under Lieutenant-Colonel Fritz Löb of the Luftwaffe. In the research department of Löb’s planning team, run by the chemical firm IG Farben’s director Karl Krauch, solutions were rapidly advanced for maximizing production of synthetic fuels and rapidly attaining self-sufficiency in mineral-oil extraction.40 By midsummer, Löb’s planners had come up with a detailed programme for overcoming the unabated crisis. It envisaged a sharp tilt to a more directed economy with distinct priorities built on an all-out drive both to secure the armaments programme and to improve food provisioning through maximum attainable autarky in specific fields and production of substitute raw materials such as synthetic fuels, rubber, and industrial fats.41 It was not a war economy; but it was on the road to becoming the nearest thing to a war economy in peacetime.