Great Britain had developed much the same attitude. From their perspective, the League of Nations’ attempts to be a global peacemaker had failed lamentably when faced with the rise of fascism and communism. Far better to forge a strong alliance within Europe in partnership with a powerful Germany, and maintain their influence across the rest of the globe through their Empire. It was not in British interests to help create a world pulpit for the United States to use.
Italy now had a reformist government which so far appeared to be making a genuine attempt to address the country’s problems. Success was limited so far but it was early days and prospects were good. Germany watched with interest.
The Economics Minister confirmed that the German economy was sound, the balance of trade was positive, and the country’s reserves were steadily improving. He also advised that he would soon be sixty six years old and would like to retire at the end of the following year. He had a protégé in his ministry whom he was grooming as his successor.
The Council were not happy to hear this but understood that it was inevitable. The old man had come out of retirement and done a brilliant job in restoring the country’s finances. He would be sadly missed but his retirement was well deserved.
Albert Speer’s main contribution to the meeting was to inform them that trade continued to expand with the Soviet Union. “Our ship builders have full order books thanks to the Soviets and our own rapidly expanding merchant fleet. Deliveries due to us in terms of the barter trade agreements are up to date. Some scheduled deliveries to us never arrived a couple of months ago. The Soviets probably assumed we would not make a big issue out of it. In response to their games, we simply delayed shipment of some critical engineering products they were waiting for. They soon rectified the situation.
It was the Minister of Aviation, Kesselring, who provided the most interesting item for consideration. The national airline, Lufthansa, had submitted a comprehensive and well thought out report, outlining the need for a greatly expanded airline network, as well as a new generation of fast civilian airliners.
Lufthansa was inundated with requests for flights to business centres all over Europe and the world. There was a great upsurge of interest in flights to China, Japan and Asia. Both the Chinese and Japanese governments had asked Lufthansa to expand their air services to those countries.
“There is a great opportunity here for our national airline to become the biggest in the world. It would only require the acquisition of suitable aircraft and establishment of overseas facilities.
There is something else of importance for us to consider. The American aircraft manufacturer, Lockheed, have been working on a four engine pressurised airliner since 1937. They are calling it the Constellation. The emphasis later switched to a military version, but I believe this is about to end and civilian aircraft will become available to the world’s airlines in the next year or so.
During the next few years, Germany has a golden opportunity to develop aircraft manufacture as one of our main export industries. An industry of the utmost strategic and economic importance. Our own European Alliance is virtually a captive market for sales. I have done some preliminary research on this. One possibility is co-operation with Great Britain, or perhaps France, in this field.
My recommendation is that we authorise a study for the development of a fast airliner as competition to the Lockheed Constellation. But this should only be considered as an interim stage. A further study should also be conducted, in parallel, to design the next generation of airliner, a four engine jet aircraft.”
He had given them food for thought. All were very enthusiastic. Kesselring was asked to give them a copy of his research and a copy of Lufthansa’s proposal, for them to study.
The Minister of Defence amplified what had already been agreed at other, informal, meetings. The intelligence services confirmed that the Soviet Union had slowed production and delivery of their Sturmovik fighter and the new T36 tank. The best assessment was that the Soviet Union was short of funds, and as a result of the purchases from Germany, also suffering from diminished supplies of raw materials for their own use. Also it was believed that Stalin was perhaps not entirely unhappy with the status quo in Europe and was letting the Germans know this by slowing down his rearmament programme.
The evaluation was that the chances of any attack by the Soviet Union were reduced for at least another year.
“Accordingly, gentlemen, we will delay for six months the introduction of our new aircraft and tanks. This will save a lot of money and at the same time allow continued development and improvement of the weapons.
Professor von Braun reports good progress with his rockets and he is talking of demonstrating something very interesting to us later in the year. Beyond that I know very little of what he is doing. Von Braun still insists that rockets are the weapons of the future! I am inclined to at least partially believe this.”
James Blackstone had finally found a job. He had been appointed a director of a small London based private bank, Bradlington Thornberry Bank. His remit was to seek new financial opportunities in Britain and Europe. The contacts and acquaintances he had made during his years as an MP were expected to be very useful to him.
His wife Fiona had been extremely annoyed with him for losing his status as a Member of Parliament. However, his new title at the bank partly compensated for this, as did his increased salary. She continued to spend money faster than James was making it.
A list he had compiled of potentially useful contacts was complete. Now he would start acting on it. First and second on the list were his father and his brother Jeremy.
Horace Blackstone had been Permanent Secretary to the Treasury for the past five years. James was under no illusion that his straight-as-a-die father might use his influence or contacts to assist him. He did, however, respect his father’s knowledge and experience. This was the reason for meeting for lunch today.
Over a pleasant unhurried lunch, James did most of the listening while his father, in answer to James’ questions, gave a lengthy and detailed discourse on the state of the world economy and banking in general, and Britain in particular. James was fascinated! He was finding his new career in banking could be exhilarating. Perhaps losing his seat in Parliament was a blessing in disguise!
He would always remember his father’s last words that day. “Remember, James. Be scrupulous and prudent in every single financial transaction you are faced with. The world of banking is small. Mistakes and transgressions are not forgiven”.
They parted company with James silently promising himself to visit the old man more often.
Kesselring’s comprehensive survey on the future of civilian aviation had been given the great consideration it deserved, before being approved by the Governing Council. Through the German Embassy in London he had arranged a meeting with his British counterpart, Harold Balfour. That meeting was now about to be held.
Little was known in Germany about Balfour. He was forty five years old, and an ex-Great War fighter pilot. He had been a Member of Parliament since 1929, and had served in the Air Ministry for the past four years. As far as Kesselring had been able to ascertain he was diligent and highly intelligent. Perhaps not your average politician!