Actually even though I think this picture was taken in Lithuania, the salute was clearly virtually the same as the salute ("raised hand", at any rate) for making the Pledge of Allegiance in America. This old way of doing things I believe pertained in America up until the 1930s, when it suddenly became politically incorrect - for some reason.
In 1939 Lord Baden-Powell noted in his diary:
Lay up all day. Read Mein Kampf. A wonderful book, with good ideas on education, health, propaganda, organization etc.—and ideals which Hitler does not practice himself.
He also admired Mussolini, and some early Scouting badges had a swastika symbol on them. He maintained that his use of the symbol related to its earlier, original meaning of "good luck" in Sanskrit, for which purpose the symbol had been used for centuries prior to the rise of fascism.
Baden-Powell was a target of the Nazi regime in the Black Book, which listed individuals which were to be arrested during and after an invasion of Great Britain as part of Operation Sea Lion. Scouting was regarded as a dangerous spy organisation by the Nazis.
