The natural course of the Soviet Government is to endeavour by every means in her power to avoid a clash by yielding to German demands. They are, however, making extensive preparations to meet the German threat should the worst happen. 4. From the general political standpoint Germany may hope to present to the world a picture of complete domination in Europe. With the addition of some agreement with the U.S.S.R. she might hope to discourage the U.S.A. and to bring about a negotiated peace with ourselves.