Nazi and Fascist groups as to insure peaceful acquiescence in the German program. Her machinations in Austria I have related in detail, as they came under my direct observation, in a separate affidavit. In Czechoslovakia they followed the same tactics with the Sudeten Germans. I was reliably informed that the Nazi Party spent over 6,000,000 marks in financing the Henlein Party in the elections in the spring of 1935 alone. In Yugoslavia she played on the old differences between the Croats and the Serbs and the fear of the restoration of the Hapsburg in Austria. It may be remarked here that this latter was one of the principal instruments, and a most effective one, which Nazi Germany used, as the fear in Yugoslavia in particular of a restoration of the Hapsburg was -very real. In Hungary she played upon the agrarian difficulties and at the same time so openly encouraged the Nazi German elements in Hungary as to provoke the Government of Hungary to demand the recall of Von Mackensen in 1936. In Hungary and in Poland she played on the fear of communism and communist Russia. In Romania she aggravated the existing anti-Semitism, emphasizing the important role of the Jews in Romanian industry and the Jewish ancestry of Lupescu. Germany undoubtedly also financed the fascist Iron Guard through Codreanou.

"Such 'diplomatic' measures reinforced by Germany's vast rearmament program had a considerable effect, particularly in Yugoslavia, Poland, and Hungary, and sufficient at least to deter these countries from joining any combination opposed to German designs, even if not enough to persuade them actively to ally themselves with Nazi Germany.

"Important political leaders of Yugoslavia began to become convinced that the Nazi regime would remain in power and would gain its ends, and that the course of safety for Yugoslavia was to play along with Germany."