Imbued with the sacred aura of this house and with the historical greatness of this moment, we closed our sublime ceremony with national hymns that resounded like a pledge from the people and its artists to the Führer. At the conclusion of the solemn dedication, the Führer and guests of honour from the diplomatic corps, the government, and the leadership of the NSDAP moved on the large, airy rooms of this new temple of German art to admire the first Great German Art Exhibition.

Within its unique conservative style Nazi art was purposeful, with content chosen less for aesthetic appeal and more for usefulness in the ‘bigger political picture’. It achieved much in terms of embodying and communicating the wider fascist ethos of the NSDAP: reinforcing its back-story of a pure race and a country with both a mystical past and a great future, a ‘thousand-year Reich’, that would be delivered if the people believed in the ‘quasi-religious’ values of Nazism – military and moral strength together with an intolerance of weakness, liberal values and, above all, the evils and degeneracy of communism and Judaism. It is interesting that the art created was so distinct and clear in its message, such a quintessential fascist aesthetic, that almost seventy years later the material is still something of a taboo with many authors putting disclaimers in their work when discussing Nazi art, seeking to avoid condoning the content.

Most of the painting shows the closest possible ties to the Munich school at the turn of the century. Leibl and his circle and, in some cases, Defregger are the major influences on many paintings portraying farmers, farmers' wives, woodcutters, shepherds, etc., and on interiors that lovingly depict many small and charming facets of country life. Then there is an extremely large number of landscapes that also carry on the old traditions.... We also find a rich display of portraits, particularly likenesses of government and party leaders. Although subjects taken from the National Socialist movement are relatively few in number, there is nonetheless a significant group of paintings with symbolic and allegorical themes. The Führer is portrayed as a mounted knight clad in silver armour and carrying a fluttering flag. National awakening is allegorized in a reclining male nude, above which hover inspirational spirits in the form of female nudes. The female nude is strongly represented in this exhibit, which emanates delight in the healthy human body.

In July 1937, four years after it came to power, the Nazi party put on two art exhibitions in Munich.

The Great German Art Exhibition was designed to show works that Hitler approved of - depicting statuesque blonde nudes along with idealised soldiers and landscapes.

The second exhibition, just down the road, showed the other side of German art - modern, abstract, non-representational - or as the Nazis saw it, "degenerate".

The Degenerate Art Exhibition included works by some of the great international names - Paul Klee, Oskar Kokoschka and Wassily Kandinsky - along with famous German artists of the time such Max Beckmann, Emil Nolde and Georg Grosz.

The exhibition handbook explained that the aim of the show was to "reveal the philosophical, political, racial and moral goals and intentions behind this movement, and the driving forces of corruption which follow them".

Works were included "if they were abstract or expressionistic, but also in certain cases if the work was by a Jewish artist," says Jonathan Petropoulos, professor of European History at Claremont McKenna College and author of several books on art and politics in the Third Reich.

He says the exhibition was laid out with the deliberate intention of encouraging a negative reaction. "The pictures were hung askew, there was graffiti on the walls, which insulted the art and the artists, and made claims that made this art seem outlandish, ridiculous."

British artist Robert Medley went to see the show. "It was enormously crowded and all the pictures hung like some kind of provincial auction room where the things had been simply slapped up on the wall regardless to create the effect that this was worthless stuff," he says.

Hitler had been an artist before he was a politician - but the realistic paintings of buildings and landscapes that he preferred had been dismissed by the art establishment in favour of abstract and modern styles.

So the Degenerate Art Exhibition was his moment to get his revenge. He had made a speech about it that summer, saying "works of art which cannot be understood in themselves but need some pretentious instruction book to justify their existence will never again find their way to the German people".

The Nazis claimed that degenerate art was the product of Jews and Bolsheviks, although only six of the 112 artists featured in the exhibition were actually Jewish.

The art was divided into different rooms by category - art that was blasphemous, art by Jewish or communist artists, art that criticised German soldiers, art that offended the honour of German women.

One room featured entirely abstract paintings, and was labelled "the insanity room".

"In the paintings and drawings of this chamber of horrors there is no telling what was in the sick brains of those who wielded the brush or the pencil," reads the entry in the exhibition handbook.

The idea of the exhibition was not just to mock modern art, but to encourage the viewers to see it as a symptom of an evil plot against the German people.

The curators went to some lengths to get the message across, hiring actors to mingle with the crowds and criticise the exhibits.

The Degenerate Art Exhibition in Munich attracted more than a million visitors - three times more than the officially sanctioned Great German Art Exhibition.

Some realised it could be their last chance to see this kind of art in Germany, while others endorsed Hitler's views. Many people also came because of the air of scandal around the show - and it wasn't just Nazi sympathisers who found the art off-putting.