Plan No. 3

In Washington, anxious Assistant Secretary of State George S. Messersmith repeatedly crawled out of bed around 4 AM to hear by transatlantic telephone what U. S. Ambassadors in Europe could tell him about whether Adolf Hitler was going to hurl the German Army into Czechoslovakia.

The danger of war was not acute enough to keep Prime Minister Neville Chamberlain in London. With his fishing rods and guns sticking ostentatiously out of his limousine, Mr. Chamberlain left for Scotland to play trout streams and shoot grouse with King George. Lloyd's pointed out in London last week that, although they stopped writing war-risk insurance on British property some months ago, and although they have been unwilling to cover either the risk of war breaking out in Europe or of Franklin Roosevelt announcing he will seek a Third Term, they were still quoting cargo insurance at far below "wartime rates." Thus, although the rate on South African copper shipped to Germany was raised last week from .025% to .125% the latter figure spells "Peace" in comparison with the 42% premium charged on shipments bound for war-torn Spain.

Up and down Europe a new factor working for peace was sighted by anxious millions in the behavior last week of U. S. Ambassadors. In London, after the British Cabinet had reviewed the Czechoslovak situation for nearly three hours, U. S. Ambassador Joseph Patrick Kennedy was invited in for an hour's conference. Next day Mr. Kennedy was back in Downing Street, conferring this time with Foreign Secretary Viscount Halifax, and red-ink London placards shrieked this as good news. Mr. Kennedy, interviewed by transatlantic telephone, told the Hearst Boston American, ''No war is going to break out during the rest of 1938."

The Soviet Union and the French met and discussed the situation, while in Prague the British mediator, Viscount Runciman, at last had ready a third series of proposed concessions to the Sudeten Germans known as Czechoslovak Premier Dr. Milan Hodza's "Plan No. 3." This had been secretly flown over for the inspection of the British Cabinet and secretly flown back to Prague by Mr.

Frank Trelawny Arthur Aston-Gwatkin, Lord Runciman's Man Friday. It was taken by Sudeten German Führer Konrad Henlein to Berchtesgaden last week and there laid before the German Führer. Details were kept secret but it was understood that Plan No. 3 embodied these main points: 1) a three-month truce to be declared, to give time for much further negotiation between the Sudeten Germans, the Czechoslovak Government and other interested parties; 2) Czechoslovakia to become after these negotiations a Federal State composed of Gaue or "Cantons" modeled on the Swiss Federal State, whose structure has often been compared to that of the U. S. The Sudetens complain this would give their Gaue only a rough equivalent to American States' rights, whereas they have demanded "autonomy" comparable to British dominion status.

Viscount Runciman's entourage began complaining fortnight ago that they have found Konrad Henlein nothing but a "straw man," and last week the Sudeten Führer went to Berchtesgaden only to take the orders of his boss, Führer Hitler—for the fourth time this year.

Present with the No. 1 Nazi were No. 2 Nazi Göring, No. 3 Nazi Goebbels and Foreign Minister Joachim von Ribbentrop, who arrived from Berlin with what was said to be a personal piece of advice to Adolf Hitler from Neville Chamberlain.

This had been verbally delivered in Berlin by the British Ambassador, Sir Nevile Henderson, who brought it by air from London. As Sir Nevile was leaving Croydon, he added an E. Phillips Oppenheim touch by portentously remarking to cameramen : "You had better be quick—this is the last chance you'll get."

Henlein, after four hours' conference with Hitler, returned to his home in the village of As. Three days later one fact seemed obvious: the "strawman" had been instructed to reject Plan No. 3, to compromise on nothing, to hold out for full, unqualified Sudeten autonomy. The Czech Cabinet then met with President Benes and drafted its "last" offer to which a response was expected from Dictator Hitler this week in one of his numerous speeches at the Nazi Party Congress in Nuremberg.

Meanwhile, local bigwigs of the Sudeten German Party were reported from Czechoslovakia as be ginning to show signs of fear lest they be thrust aside by Nazis from Germany, much as in Vienna the Austrian Nazis have lost all the biggest plums to German Nazis. Supplementing cables to this effect was a statement by pro-Czech Chairman George Boochever of the American-Czechoslovak Chamber of Commerce, who stepped off the Dutch liner Nieuw Amster dam in Manhattan. "In my talks with Sudeten Germans," said Mr. Boochever, "I gained the impression that they had no real wish to be annexed to Germany. . . . I think Henlein is but the mouthpiece for Hitler's views and if it were not for the propaganda and subsidies from Germany received by Henlein and his group there would be no agitation. . . ."

Another Nazi Measure against Jews

The German Government is now requiring all Jewish women to add "Sara" to their given first names, and men to likewise add "Israel" to their names. This is to be on all legal documents and passports. This measure is to better identify Jews who have non-Jewish names.

The law goes into effect on January 1, 1939.

Lord Runciman meets Konrad Henlein

Viscount Runciman had been 15 days in Czechoslovakia without meeting Konrad Henlein, who thought his prestige would be enhanced if he made the British lord call on him. This, the Viscount had refused to do, but in last week's emergency Lord Runciman consented to motor from Prague into the Sudeten Nazi territory and meet Herr Henlein in the castle of Prince Max von Hohenlohe, whose lands extend right up to the German frontier.

Prince Max, although ardently pro-German, keeps his fingers crossed, has a passport which makes him a subject of the Principality of Liechtenstein. Last week he mobilized his villagers, his gamekeepers, his servants and his toddling infants, all of whom gave the Nazi salute as Lord Runciman arrived in formal black jacket, wing collar and black bat tie. Herr Henlein turned up in brown tweed coat, grey flannel slacks and white shoes. Present was the German agent known as "Princess Steffi," who generally operates in London. There she has been hostess to Herr Henlein and to Adolf Hitler's personal agent, Captain Wiedemann (TIME, Aug. 1). From the castle windows the conferees could see the Sudeten Mountains and the German frontier, patrolled unceasingly before their eyes by fighting planes of Czechoslovakia and the Reich. The meeting lasted from 12:30 to 5:45.

Diplomatic rumor had it that "Henlein showed himself most intransigent." But shortly thereafter Herr Henlein assembled his lieutenants in the Hotel Veimar in Marienbad. There he outlined the Sudeten demands anew, clarified along lines suggested by Lord Runciman. Meanwhile, to make the clamorous Henlein minority perhaps less intransigent, Premier Hodza soon after announced he would give choice political plums to Sudeten Germans by appointing them to seven large postmasterships, a district public works superintendency, two district governorships, more jobs in the railroad administration.

Main Synagogue of Nuremberg Destroyed

The Main Synagogue of Nuremberg was burned and damaged beyond use yesterday. The Congregation of the synagogue were given until August 3rd to sell to the City of Nuremberg. After the congregation could not come to a consensus, Mayor Willi Liebel, expropriated the land.

August 10th, there was a gathering of many Nazis in front of the grand synagogue. The Mayor attended and took part in the rally as well as the Gauleiter Julius Streicher. The rally then turned into a demolition and the synagogue was heavily burned and damaged.

The Synagogue has been a fixture in the Nuremberg skyline. No response has been lodged by the displaced congregation.

Lord Runciman meets with German Sudeten Party members

Konrad Henlein, the Sudeten German Führer, sent only subordinates to confer with the Viscount. The consideration with which he treated them was considered spectacular. Lord Runciman's program included 20-minute formal calls on President Eduard Beneš and Premier Milan Hodza; two lengthy conferences with henchmen of Henlein, the second lasting until 2 am; next day lunch with Dr. & Mme Beneš; a short conference at his hotel with non-Nazi Czech Germans.

On the third day the British mediator uncorked his first proposal. He declared that before he could attempt to advise he must understand the problems of Czechoslovakia, must study them for at least a fortnight. Therefore, he proposed that the Government and the Sudetens stop negotiating while he studied. To this provisional Pax Runciman they agreed. Instead of discussing the disputed Minorities Statute, the Czechoslovak Parliament met for only 20 minutes—its first meeting since the war crisis was averted on May 21 —then meekly adjourned indefinitely.

Meanwhile, tourist travel to Prague picked up magically overnight. Tourists wolfed tasty Prager ham and downed it with Pilsner beer, convinced that they were safe so long as The Man With the Wrinkled Brow continues his studies.

When U. S. Ambassador to Germany Hugh Wilson, an ace career diplomat, suddenly flew to Prague on what he carefully described as "just a holiday visit" to his friend U. S. Minister to Czechoslovakia Wilbur J. Carr, Czechs were delighted.

They thought his coming was a friendly gesture by President Roosevelt and the State Department, a nudging reminder from Washington to London that the bulk of U. S. public opinion would not be favorable to a Runciman Report so couched as to sell Czechoslovakia down the river. Private Person Wilson was soon received by President Beneš and Premier Hodza, had a talk with Private Person Runciman, insisted he was only vacationing.

Lord Runciman remains in Prague

---From the New York Times---

While Viscount Runciman’s staff continues to work in close contact with the Henlein party leaders, the British negotiator in the Czech-Sudeten German dispute confined himself today to purely formal visits.

In the morning he received Premier Milan Hodza and Foreign Minister Kamil Krofta, who were returning the calls he paid on them yesterday. At noon he and Lady Runciman lunched with President Eduard Benes and his wife at Hradschin palace. At Lord Runciman’s wish the luncheon was entirely private.

In the afternoon Lord Runciman received a deputation of German Activists – who support the republic – consisting of Wenzel Jakach, Herr Taub and Herr Rehward. The interview lasted only half an hour, in contrast with the hour and a half the Henleinist leaders spent with Lord Runciman yesterday, followed by a late night conference with his staff.

These meetings were held at the Alcron Hotel. Tomorrow the Henleinist leaders again will have long conferences with Lord Runciman’s staff.

Last night they put forward the sensational demands advanced by Konrad Henlein in his Karlsbad speech April 24, when he proclaimed himself and his movement purely Nazi. The Henleinist delegates further explained to Lord Runciman’s staff the meaning of the party’s memorandum embodying most of the Karlsbad demands that was presented to the government June 7.

Incidentally, it is reported that the Committee of Political Ministers is drawing up an answer to the Henlein party’s memorandum.

The German Activist representatives deliberately refrained from bombarding Lord Runciman with documentary propaganda. They left it entirely to the British negotiator to say whether or not he wished further contact with them and advice from them. They told him that if he wished to hear the democratic German viewpoint they would be glad to draw up a memorandum next week and he requested that they do so.

They further offered to show him any industrial center in the Sudeten area that he wished to see, to enable him to “see for himself that the Sudeten Germans can do a good day’s hard work as well as conduct political agitation.”

Lord Runciman thanked them and said that he would consider their suggestion when he drew up his program of visits.

Lord Runciman is leaving Prague for a week-end in the Sudeten area and it is understood that he will pay a personal visit to a big German landowner. His staff refused all information tonight as to whom he would visit.

The German press and radio propaganda campaign in connection with the flight of two Czech planes over Glatz in German territory Wednesday is described as the most violent of all those launched against this country, not excepting the campaign in the days preceding May 21, when Czechoslovakia called reserves to the border.

The press reminds Germany that there have been many cases of German pilots flying as far as Pilsen without any Czech press campaign being launched against Germany. It is a fact the there are constant violations of the Czech frontier by German planes, which it is thought wiser here not to make the subject of protests nor even to allow mentioned [sic] in the press.

The extraordinary violence of the present German campaign gives rise to suspicions that there is truth in reports of large military concentrations around Glatz that have been received here in the last week.

Glatz is situated in a German “peninsula” almost entirely surrounded by Czechoslovak territory and it is quite conceivable that pilots flying over Czechoslovakia could make a mistake and cross the German line there.

The Prague radio replied to the German propaganda tonight in the form of an official communiqué giving three cases in which German pilots, giving the same excuse as the Germans refused to accept in the Galtz case – poor visibility – actually landed in Czechoslovak reserved military areas during the last two months.

England sends Lord Runciman to Prague

Walter Runciman, 1st Viscount Runciman of Doxford, arrived today in Prague in response to the continuing Sudetenland crisis between Czechoslovakia and Germany. He is hoping to find a mutually beneficial solution to the situation.

His first day has so far involved a meeting with the Czechoslovakian President. He will be meeting with German Sudetens and other involved parties before returning to England and the British Prime Minister, Neville Chamberlain.

Italy cracks down on Jews

Italy has passed the Racial Laws against the Jews barring them from studying or teaching in a school of higher learning and revoking the citizenship of all foreign Jews obtained after January, 1919, and decreeing their expulsion within six months.

Japanese & Soviet conflict resolved

The details are not known at this time. However, sources have said that the conflict between the Japanese Empire and the Soviet Union ended on August 1st. The border between Soviet Union's Siberian wilderness and Japan's state of Manchuria, now called Manchukuo, will return to its previous situation on July 29th. This was the day the Japanese entered Siberia unprovoked.