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Dear Friends:
I am writing a few days earlier because of the new difficulty over the Verlag-Press relations. As I indicated in my last letter, I felt optimistically about the matter and had extracted from Hiller a promise that he would give the new system a fair trial, that he would place all responsibility on Rank, and that then if he found the situation unsatisfactory he could openly say to all of us what exactly he objected to. In stead of which, he has written to me this week sending in his resignation. He wrote a long rambling letter, chiefly complaining about the meeting in Berlin, and I cannot really say what his true reasons are for his action. I suspect they must be neurotically conditioned. I have written asking him for a more precise statement, but have not yet had time to get an answer.
As I see the case, it essentially turns on whether Rank can win Hiller over to act his subordinate. I trust this will still prove possible. If not, then we must consider the situation de novo. I do not think, for financial reasons, that we could in any case continue the Press in England and I am equally sure that we have no one here whom we should send to replace Hiller. Therefore there would be in the worst case the choice between (1) defining the relations of the V[erlag]P[ress] in a clear and businesslike manner, allowing the latter a certain autonomy, as little as would be necessary to satisfy Hiller; (2) selling the whole concern to an English publisher, such as Unwin, a course which I should be exceedingly loth to pursue for every reason; (3) allowing the Verlag to conduct the whole Press concern without an Englishman, which I honestly do not think would be possible.
I have had a long interview with Rickman, who I hope will replace me in the business sphere, for I have more than enough to do editorially. He has drawn up a memorandum midway between Hiller's position and Rank's, and he sent copies of this to both. Hiller had also drawn up a detailed memorandum, but did n