From all I can gather, it seems German Government is as determined as ever not to capitulate under any circumstances. The announced policy is still to play for time in hope that new weapons which are to give another character to war will be ready before complete Allied victory. In view of continuous deterioration of situation against German forces during the past few months and fact that there is no remaining source of assistance from outside, it may appear strange that no modification of attitude of Government has taken place, but policy of No Capitulation seems to have been adopted as unalterable principle partly because it is held that Germany's downfall 1918 was due to collapse of Home Front rather than military defeat and also because of unrelenting nature of Allied conditions. You will have heard of alleged project of an isolated final resistance in event of entry into Germany of Allies en masse. There may be something in this because Government is more than ever based on party rather than nation since June, and in present crisis Hitler and political leaders are inspired by memories of progress of party from small beginnings up to 1933. They furthermore consider their political and social programme best possible for Germany and are not prepared to consider any alternative: articles arguing, because of superiority of her political system, Germany cannot be defeated have ad infinitum appeared in Press. The Press has had much about resurrection of Prussia in 1813 also, and G.[oebbels] is always harping on final success of Frederick Great due to tenacity.

There is no doubt that many Germans consider war lost and an internal movement at some stage is possible, though unlikely, unless matters develop very rapidly. Most colleagues believe new weapons will be too late though.