Berlin (Jul. 5)
The crisis in the German cabinet precipitated by the execution of one of its members, Col. Ernst Roehm, and the temporary arrest and profferred resignation of a second, Col. Franz von Papen, has not been settled by the retention of von Papen as vice chancellor.
Von Papen’s resignation was not accepted by. Chancellor Hitler at the order of President Paul von Hindenburg, who still holds the balance of power by virtue of his control of the Reichswehr. It was indicated in Nazi circles today, however, that von Papen would soon be deprived of his post but would be permitted to continue as Commissioner for the Saar.
It is understood now that von Papen has no desire to remain in the government, withdrawing his resignation only at the request of von Hindenburg, whose personal representative in the government he is.
Slated to succeed von Papen now is Rudolf Hess, Hitler’s deputy in the leadership of the Nazi party and one of his closest advisers. Hess is a minister without portfolio in the cabinet.