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Chancellor Ludwig Kaas continues the slow and steady pace of German economic changes, though many in his own party, not to mention the members of his coalition, are starting to express doubts.
In the last months of 1936, with the election less than a year away, Kaas is finally forced to do something. Despite the vehement opposition of the German National People's Party, a massive spending increase, including support for industry and agriculture, and new State Factories were built to employ many who were still unable to find work. The Socialists were happy with this, and the Communist Party was stopped cold as new Socialist measures were introduced.
To gain the support of the Nationalists, the Government also approached France and Britain to lift the army restriction clauses of the Treaty of Versailles. The French government, struggling through another faltering coalition, was in no position to make a decision, so decided to agree with whatever Britain said.
Prime Minister Neville Chamberlain was in a quandary: he wanted to avoid a new world war at any cost, but if he agreed to letting Germany build up an army, would they use it to fight?
What does he do?
- Scrap Versailles: let them arm!
- Germans can't be trusted... NEIN!
- This will take some time to figure out...