Adolf Hitler
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Eden, Hitler first used what he regarded as the brilliant colonial negotiating tactic, when Hitler parlayed an offer from Simon to return to the League of Nations by demanding the return of the former German colonies in Africa. Starting in April 1935, disenchantment with how the Third Reich had developed in practice as opposed to what been promised led many in the Nazi Party, especially the Alte Kämpfer (Old Fighters; i.e., those who joined the Party before 1930, and who tended to be the most ardent anti-Semitics in the Party), and the SA into lashing out against Germany's Jewish minority as a way of expressing their frustrations against a group that the authorities would not generally protect. The rank and file of the Party were most unhappy that two years into the Third Reich, and despite countless promises by Hitler prior to 1933, no law had been passed banning marriage or sex between those Germans belonging to the "Aryan" and Jewish "races". A Gestapo report from the spring of 1935 stated that the rank and file of the Nazi Party would "set in motion by us from below," a solution to the "Jewish problem," "that the government would then have to follow." As a result, Nazi Party activists and the SA started a major wave of assaults, vandalism and boycotts against German Jews. On 18 June 1935, the Anglo-German Naval Agreement (AGNA) was signed in London which allowed for increasing the allowed German tonnage up to 35% of that of the British navy. Hitler called the signing of the AGNA "the happiest day of his life" as he believed the agreement marked the beginning of the Anglo-German alliance he had predicted in Mein Kampf. This agreement was made without consulting either
France or Italy, directly undermined the League of Nations and put the Treaty of Versailles on the path towards irrelevance. After the signing of the A.G.N.A., in June 1935 Hitler ordered the next step in the creation of an Anglo-German alliance: taking all the societies demanding the restoration of the former German African colonies and coordinating (Gleichschaltung) them into a new Reich Colonial League (Reichskolonialbund) which over the next few years waged an extremely aggressive propaganda campaign for colonial restoration. Hitler had no real interest in the former German African colonies. In Mein Kampf, Hitler had excoriated the Imperial German government for pursuing colonial expansion in Africa prior to 1914 on the grounds that the natural area for Lebensraum was Eastern Europe, not Africa. It was Hitler's intention to use colonial demands as a negotiating tactic that would see a German "renunciation" of colonial claims in exchange for Britain making an alliance with the Reich on German terms. In the summer of 1935, Hitler was informed that, between inflation and the need to use foreign exchange to buy raw materials Germany lacked for rearmament, there were only 5 million Reichmarks available for military expenditure, and a pressing need for some 300,000 Reichmarks/day to prevent food shortages. In August 1935, Dr. Hjalmar Schacht advised Hitler that the wave of anti-Semitic violence was interfering with the workings of the economy, and hence rearmament. Following Dr. Schacht's complaints, plus reports that the German public did not approve of the wave of anti-Semitic violence, and that continuing