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Adolf Hitler

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ordered 60 million Reichmarks of foreign exchange to be used to buy seed oil for German farmers, a decision that led to bitter complaints from Dr. Schacht and the War Minister Field Marshal Werner von Blomberg that it would be impossible to achieve rearmament as long as foreign exchange was diverted to preventing food shortages. Given the economic problems which was affecting his popularity by early 1936, Hitler felt the pressing need for a foreign policy triumph as a way of distracting public attention from the economy.

In an interview with the French journalist Bertrand de Jouvenel in February 1936, Hitler appeared to disavow Mein Kampf by saying that parts of his book were now out of date and he was not guided by them, though precisely which parts were out of date was left unclear. In March 1936, Hitler again violated the Versailles treaty by reoccupying the demilitarized zone in the Rhineland. When Britain and France did nothing, he grew bolder. In July 1936, the Spanish Civil War began when the military, led by General Francisco Franco, rebelled against the elected Popular Front government. After receiving an appeal for help from General Franco in July 1936, Hitler sent troops to support Franco, and Spain served as a testing ground for Germany's new forces and their methods. At the same time, Hitler continued with his efforts to create an Anglo-German alliance. In July 1936, he offered to Phipps a promise that if Britain were to sign an alliance with the Reich, then Germany would commit to sending twelve divisions to the Far East to protect British colonial possessions there from a Japanese attack. Hitler's offer was refused.

In August 1936, in response to a growing crisis in the German economy caused by the strains of rearmament, Hitler issued the "Four-Year Plan Memorandum" ordering Hermann Göring to carry out the Four Year Plan to have the German economy ready for war within the next four years. During the 1936 economic crisis, the German government was divided into two factions, with one (the so-called "free market" faction) centring around the Reichsbank President Hjalmar Schacht and the former Price Commissioner Dr. Carl Friedrich Goerdeler calling for decreased military spending and a turn away from autarkic policies, and another faction around Göring calling for the opposite. Supporting the "free-market" faction were some of Germany's leading business executives, most notably Hermann Duecher of AEG, Robert Bosch of Robert Bosch GmbH, and Albert Voegeler of Vereinigte Stahlwerke AG. Hitler hesitated for the first half of 1936 before siding with the more radical faction in his "Four Year Plan" memo of August. Historians such as Richard Overy have argued that the importance of the memo, which was written personally by Hitler, can be gauged by the fact that Hitler, who had something of a phobia about writing, hardly ever wrote anything down, which indicates that Hitler had something especially important to say. The "Four-Year Plan Memorandum" predicated an imminent all-out, apocalyptic struggle between "Judo-Bolshevism" and German National Socialism, which necessitated a total effort at rearmament regardless of the economic costs. In the memo, Hitler wrote:

Hitler called for Germany to have the world's "first army" in terms of fighting power within the next four years and that "the extent of the military