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Prime Minister Chamberlain is adamant: the Germans can not expand the Army, and any attempt to do so will be met with force.
Chancellor Ludwig Kaas is stunned at the denial, as his attempts to fix the economy are now, for all intents and purposes, ruined. Trying to pander to the militarists, so that they will support other legislation, is now a forlorn hope, and the Socialists, who disagreed with the expansion of the army, will no longer support him. Kaas resigns the Chancellery.
Now the question is who will take the place of Kaas? Will the Socialists, Communists or Germany National People's Party take power?