Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-09-08
PEACE THOUGHTS IN EUROPE?
Writer Hears Reports of British Unrest
By Constantine BrOacn.

said to favor an acquiescent policy it.
Hitler is victorious in Europe.
Finally, the question is asked: II by
a superhuman effort we British did man
age to stall Hitler and prevent his crush
ing Britain in the next few weeks will
the Americans next spring agree to send
us a powerful aviation and possibly an
expeditionary force to enable us to carry
on the war in Europe itself as we did
in 1915 against Napoleon? And the an
swer, even among inveterate optinists
in the United Kingdom. is an emphatic
no.
. This is the reported picture among GER
tain sections of the British leaders. 1t
must be said that neither Mr.. Churchill
nor Lord Beaverbrook are interested in
such thoughts, because they do not trust
Hitler and Mussolini.
On the German side it is reported that
Hitler is not opposed to peace with
honor for Great Britain" How much Of
this, however, is propaganda and how
much is truth is difficult to say, since
all the reports about peace thoughts"
come back from Switzerland and Swe-
den.
Germans Confident.
But for recording purposes, here Is
what is conveyed: The German high
command is sure of victory; it is sure
that there viii be no winter or even fall
campaign against Great Britain. But it
also realizes that the British are a harder
nut to crack than was anticipated, not
in military quarters, but in Germany at
large.
Rightly or wrongly, the German gov
eminent believes that the power of Brit
ain is broken, not the power of resisting
further attacks, but her economic and
financial power. which made her for
centuries the foremost and most feared
country in the world. Consequently the
German diplomatic and economic STRAIT
egists believe that there is no reason.
Britain willing, why the devastating war
should continue.
At the present time Germany's former
economic wizard, DR.. Schacht, lives in
scclusion in the Bavarian Mountains,
not far from Berchtesgaden, working on
gigantic plan for super-bank for in
ternational settlements. DR.. Schacht
has been at this task for several months,
on Hitler's special instruction. His plan
is to so coordinate the barter system as
to create new economy not based solely
on gold, but kind of compromise be-
tween the barter system of the totalita-
rians and the gold basis policy of the
remaining democracies. He has an eye
not on Europe and Asia alone, but on the
Western Hemisphere as well. DR.. West
rick, Hitler's financial envoy here who
was compelled to leave the United States
a few weeks ago because he had become
persona non grata, had acquainted at
least some of the New York bankers and
induStrialistS with a sketchy outline of
Ibis new scheme of Schacht's which will
be sprng on the world as soon as peace
is concluded in Europe. The former
president of the Reichsbank is reported
to have staff of about 100 experts who
assist him in his work, which Hitler
wishes to have completed before the end
of November. The task seems so far ad-
vanced that M. Avenol, formerly secre-
tary-general of the League of Nations
has suggested that the buildings of that
deceased institution become the head
quarters of the new organization to deal
with world exports and settlements on
mixed barter-gold basis.
Nazi Peace Terms"
The ideas of Herr Schacht are natur-
ally known to many Britishers. The
Germans believe that these, together
with an offer for an honorable peace"
might put an end to the struggle In Eu-
rope before the winter sets in.
What idea the Germans hold for an
acceptable peace is of course, not known.
But, if we are to believe the reports from
Stockholm and Bern, the Germans
would be willing to let the British keep
most of their crown colonies in the Far
East and East Africa. That is to say,
Germany is willing to leave to Britain
the stewardship of those possessions in
the Indian Ocean which provide the
British manufacturers with rubber, tin,
tungsten and other basic raw materials
so essential to the British industry. Suez.
these sources say, must be under joint
control of Germany, Italy and Britain,
while Gibraltar must be returned to
Spain. These same sources report that
there is>no question of Germany's de.
handing the surrender of the British
navy. They may demand q reduction Of
its size by an agreement not to proceed
with the completion of the vessels now
in process of construction, but a sur
render will not be asked under the rea-
soning that Britain will need the feet In
order to protect these crown colonies In
the Pacific and the Indian Oceans
The real reason for this equanimity of
the Germans is believed to be their de-
sire to prevent the British navy from
coming to the Western Hemisphere. The
German high command is convinced
that, whatever might be the reprisals
with which they could threaten the
British navy men, the fleet will never
to surrendered and would fight its way
to the western Atlantic in order to con-