Front matter (continued 20)

signed P Copy authenticated Hollender Ministerial Councillor 30 Sept 36.

Note [initialed] B [Blomberg?] [initialed] K 2/9 [Keitel]

President Schacht called me to him today at 1300 and requested me to forward the following to the Minister of War:

Schacht returned from the Fuehrer with the greatest anxiety, since he could not agree to the economic program planned by the Fuehrer.

The Fuehrer wants to speak at the party convention [Parteitag] about economic policy, and wants to emphasize there that we now want to get free with all our energy from foreign countries by production in Germany.

Schacht requests urgently that the Reichminister of War warn the Fuehrer from this step.

If the Fuehrer emphasizes in front of the masses in Nurnberg, he will receive a great amount of applause from the audience, but with it he will bring failure to the entire commercial policy. There is only one thing in our needy position: the promotion of export. Every threat against foreign countries however, will show contrary results.

We have reverses in the field of fuels until the middle of next year, there will not be large amounts in the field of rubber. The Renn-process in the field of ores is having great difficulties.

If we now shout out our decision abroad to make ourselves economically independent, then we cut our own throats, because we can no longer survive the necessary transitory period.

Also, it must always be pointed out that German materials are at present much too expensive to be used for export, and export alone makes further armament possible.

If the food-basis of the people is not to be endangered, the Fuehrer must refrain from his plan.

President Schacht concluded that he again requests urgently to listen to this warning, and that he forwards it to the minister of war, as he will not participate in to-morrow's conference.

Thomas 2/9 [in blue pencil] [Translator's note: the following is written in pencil in the original:]

THOMAS in his memorandum:

The missing million in cash must be saved, since there is no more possibility to obtain it by increase of export.

English armament-ore! Our own procurement is a must.

4 Year Plan without antagonizing foreign countries.

Card file? Speed of armament? Yes—

Extent of armament not sufficient. Backing by foreign exchange and raw materials is absolutely necessary.

Top Secret [rubber stamp] 1st copy 5 Sept 1936 Wi II File No 66 b 9910 II z-a

Minutes on a Conference in the Reichministry for Economy on 3 Sept 1936

Chairman:Ministerialdirektor Sarnow Present: Ministerialdirektor Dr. Landwehr Ministerialdirigent Dr. Spitta Oberregierungsrat Dr. Michals {Reichministry for Economy and the competent experts of the Reichministry for Economy and the supervisory agencies} Major Czimatis Commander Griebel Regierungsbaurat Wissman {Reichministry of War, W.A.} Intendanturrat Nierhoff {Reichministry of War, V.A.} Lt.Col. Ploch Col. Witting Dipl.ing. Bresser {Reichministry for Air and Supreme Commander of the Air Force} Gen.Direktor Schirner, combined alum. plants Dr. Westrick, combined alum. plants Dir. Byer, Alum. Sales {Only during the conference on aluminum} Subject:

I. Possibilities of allotment of foreign exchange to the armed forces and economy.

II. Aluminum supply.

I. After extensive study of the connected disadvantages, the Reichministry for economy has dropped the principle that one could desist from exporting all products with more than 40% foreign raw materials. Therefore an additional need for foreign exchange results for the upkeep of the export of 2 million marks with the supervisory board for base metals. Furthermore the allotment of cash foreign exchange to the supervisory board for bast fibres must be increased from 10 million marks to 17 million marks.

Intendanturrat Nierhoff made reports on the need of the Armed Forces of textiles and leather in the year 1937, which has increased considerably from the requirements of the year 1936 (see inclosure). To fulfill these Armed Forces requirements, cash foreign exchange is necessary in the following amounts:

Group of goods Additional Armed Forces requirements of cash foreign exchange in millions of marks

1. Wool 24

shredded wool [Reisswolle] 3

mohair wool 0.75

2. silk 0.55

3. bast fibres 0.25

4. cotton 4

5. leather 22.50

———

Total 55.00

Accordingly, the following overall picture results:

Amount of cash foreign exchange necessary previously for the upkeep of economy and for the covering of requirements of the Armed Forces. 146.8 million marks

Amount of cash foreign necessary for the upkeep of export. 248 million marks

Additional requirement of cash foreign exchange necessary for the Armed Forces. 146.8 million marks

Available amount of cash foreign exchange 140 million marks.

II. Aluminum

Report on the requirements of aluminum for the Armed Forces are contained in the summary given to the Reichministry for Economy on 29 Aug.

Major Czimatis explained that the Reichministry of War did not renounce the limitations of the allotments of aluminum to the general industry, as it was said in the letter of the Reichministry for Economy of 21 Aug 1936, but that the demands for full delivery to the Armed forces for the programatic rearmament, especially for the Air Force, will be kept up.

The Reichministry for Economy considers the full delivery to industry urgently necessary also in the interest of the Armed Forces, since by a "strangulation" installations important to the Armed Forces (power issues) would also be affected immediately, and one could therefore count on an increased requirement of copper and thus of foreign exchange.

The administration of aluminum by the supervisory board for base metals is being absolutely refused by the Reichministry for Economy.

Generaldirektor Schirner reports that the negotiations for the import of 1000 tons of aluminum from Switzerland against delivery of German clay and pitch-coke are favorable. Also, the payment of processing wages is to be done with clay. However, the import of these 1000 tons is distributed over 6 to 7 months.

1000 tons more can be obtained in a comparatively short time from the Aluminum Ltd. from Canada. The negotiations for this are still in process.

Schirner reported that the stocks of aluminum in the plants is so high that he, in case the Reichministry for Air should agree to a temporary decrease of the stocks, could guarantee full delivery for both the Armed Forces and Industry until the opening of the new plants in Toging and Bitterfeld.

Lt. Col. Ploch consents that the stocks be decreased temporarily.

The Reichministry for Economy orders that the supervisory board for base metals first determine by revision the exact size of the stocks of aluminum for the Duren Metal works and the combined Light Metal works [Vereinigten leicht Metall Werke].

However, if difficulties should arise in the delivery to the Armed Forces with aluminum, then the Reichministry for Economy is ready to take up negotiations again.

MW [initials in pencil]

Inclosure

Textile and Leather Requirements of the Armed Forces

Raw materials Requirement in the year 1936 in tons Requirement in the year 1937 in tons Required additional cash foreign exchange Requirements in millions of marks

Sheared wool 7 200 18 152 24

Wool scrap [Reisswolle] 1 040 4 900 3

Combings 11 42 --

Mohair wool -- 260 0.75

Wool from tanned hides [Gerberwolle] 761 1236 --

Silk 23 72 0.5

Cocoons[4] 72 72 --

Silk yarns[4] 48 48 --

Cotton of which quality cotton Portiers and shelter halves (Egypt) 8 600 16 200

about 4 000 4

Cotton scraps 560 835 --

Artificial silk 310 670 --

Cellulose wool 1 080 3 130 --

Cleaned flax [Schwingflachs] 3 600 4 800 --

Flax scrap 7,070 10 500 --

Jute 2 100 2 100 --

Soft hemp and hard fibers 1 100 1 635 0.25[5]

of which hard fiber about 200

Sleek leather 11 000 24 000 --

Skins for uppers 7 100 13 900 --

Tanned leather 4 100 --

Leather for soles 9 500 22.5[6]

Total 55.00

It must be considered in the calculation of the foreign exchange requirements for the upkeep of the export of woolen goods, that the wool industry cannot stand more than a 10% decrease of the present amount, if it is to retain its export capability. Instead of Australian wool, one must reach back to about 50% of the available South-African wool for exports. The wool available through the limitations of value of the clearing agreement is entirely used for export. The calculated amount of foreign exchange and the most urgent requirement within Germany of 12 million marks only applies under the condition that there are until the end of September still 2 million marks in cash foreign exchange available.

One can count for the requirement of the Armed Forces on an amount of 10,000 tons raw wool, based on existing agreement. 24 million marks in cash foreign exchange are required for the additional amount of 8,152 tons with the price basis of 3,000-marks per ton.

Intendanturrat Nierhoff explained: that a decrease of the demands for quality for the Armed Forces is no longer bearable. Already 20% cellulose wool is being earmarked for uniform cloths, and a mixing of 30% scrap wool for over-coats.

The amount of foreign exchange of 4 million marks for quality cotton is therefore necessary, because one cannot count any more on the hitherto existing compensating transactions—especially with Egypt after circular 237.

The amount of foreign exchange estimated for export of 17 million marks for the supervisory board for bast fibres is distributed as follows:

10 million marks for jute 6 million marks for Sisal 1 million marks for Manila

The production of hides in Germany is reported as 140,000 tons per year. Even with the basis that the consumption of leather within Germany is decreased to a minimum, the 22,500 ton hides, corresponding to 11,200 tons leather for the Armed Forces, can only be procured with cash foreign exchange (22.5 million marks).

The raw hide requirement has been determined individually with consideration for the time required to tan the individual types of leather.

[in pencil] Top Secret!

Conference at General Field Marshal Goering's at 1000, 14 Oct. 38, in the Reich Air Ministry

[in pencil] attention H.G.

General Field Marshal Goering opened the session by declaring that he intended to give directives about the work for the next months. Everybody knows from the press what the world situation looks like and therefore the Fuehrer has issued an order to him to carry out a gigantic program compared to which previous achievements are insignificant. There are difficulties in the way which he will overcome with utmost energy and ruthlessness.

The amount of foreign exchange has completely dwindled on account of the preparation for the Czech enterprise, and this makes it necessary that it should be strongly increased immediately. Furthermore, the foreign credits have been greatly over-drawn and thus the strongest export activity—stronger than up to now—is in the foreground. For the next weeks an increased export was first priority in order to improve the foreign exchange situation. The Reich Ministry for Economy should make a plan about raising the export activity by pushing aside the current difficulties which prevent export.

These gains made through the export are to be used for increased armament. The armament should not be curtailed by the export activity. He received the order from the Fuehrer to increase the armament to an abnormal extent, the air force having first priority. Within the shortest time the air force is to be increased five fold, also the navy should get armed more rapidly and the army should procure large amounts of offensive weapons at a faster rate, particularly heavy artillery pieces and heavy tanks. Along with this manufactured armaments must go; especially fuel, powder and explosives are moved into the foreground. It should be coupled with the accelerated construction of highways, canals, and particularly of the railroads.

To this comes the Four Years' Plan which is to be reorganized according to 2 points of view.

In the Four Years' Plan in 1st place all the constructions which are in the service of armament are to be promoted and in 2nd place all the installations are to be created which really spare foreign exchange.

The substitutes produced by the Four Years' Plan are to be brought rapidly into circulation. The Reich Ministry for Economy and the other agencies should make suggestions by the beginning of November for rapidly increasing the introduction of the substitutes. The import of materials for which we have substitutes has to be drastically curtailed.

General Field Marshal Goering enlarged then upon the main problem of the session: how can these requirements be fulfilled.

He is faced with unheard difficulties. The treasury is empty, the industrial capacity is crammed with orders for many years. In spite of these difficulties he is going to change the situation under all circumstances. Memoranda were of no help, he desires only positive proposals. If necessary, he is going to convert the economy with brutal methods in order to achieve his aim. The time has come when private enterprise can show whether it has a right for continued existence. If it fails, he is going over to state enterprise without any regard. He is going to make barbaric use of his plenipotentiary power which was given to him by the Fuehrer.

All the wishes and plans of the state, party and other agencies which are not entirely in this line have to be rejected without pity. Also the ideological problems cannot be solved now, there will be time for them later. He urgently cautions against making promises to the workers which can not be kept by him. The wishes of the labor front recede entirely into the background. Industry has to be fully converted. An immediate investigation of all productive plants is to be initiated in order to determine whether they can be converted for armament and export or whether they are to be closed down. The problem of the machine industry has the first consideration in this respect. There is no place for printing and laundry machines and other machines of that kind, they all have to produce machine tools. In the field of machine tools the priorities of the orders are to be investigated, and wherever possible, increase in productive capacity is to be introduced. It follows without saying that work has to be conducted in 3 shifts.

It remains now to decide who is going to carry out this task; the state of the self-administrative industry. He requested a proposal from General Director Zangen for the methods to realize these plans. He warns all agencies, particularly the labor front, price controller, etc., from interfering with these proposals in any way. He is going to proceed ruthlessly against every interference on the part of the Labor Front. The Labor Front would not receive raw materials and workers for its tasks any more. Similarly all other party requirements have to be set aside without consideration. Foreign workers can continue being employed except in the particularly secret sections of the enterprise. At the present time the plants should not be burdened with unnecessary demands, such as athletic fields, casinos or similar desires of the Labor Front. Measures proposed by the Labor Front have to be submitted to him for approval.

Raw materials and power are to be subjected to accurate management. Similarly the distribution of men has to be organized in an entirely different way than it has been done until now. The retraining did not function; all agencies failed. The recommitment of the youth into the industry will be organized by him on a very large scale. Large state apprenticeships are to be created; besides, the plants will be obliged to hire a certain number of apprentices. A retraining of hundreds of thousands of people will have to take place. Much more work will have to be performed by women than until now. Above all, the young women have to be employed much more. Work periods of eight hours do not exist any more; wherever necessary, overtime is to be performed, double and triple shifts are a matter of course. Where the workers will protest, as in Austria, for example, General Field Marshal Goering will proceed with forced labor; he will create camps for forced labor. The Labor Front should not carry false social ideas among the workers. It is a fact that one generation has driven the cart into the mud through the mutiny of the workers and by being guilty of not having shot these workers on the spot. Therefore, we had to put the thing in order again.

Much is to be done at once in the field of transportation. The Ministry for Transportation should submit a request about the construction of rolling stock and about other requirements. The branch-canal near the Hermann Goering Works is particularly important. It cannot continue that the Armed Forces interfere with the car park. If that will continue, he will make a decision, because it is impossible that the people should starve on account of it.

In the agriculture it is of importance to employ foreign workers. Similarly the problem of the agricultural machine has to be promoted. Of particular importance is the erection of store-houses.

The Sudeten land has to be exploited with all the means. General Field Marshal Goering counts upon a complete industrial assimilation of Slovakia. Czechia and Slovakia would become German dominions. Everything possible must be taken out. The Oder-Danube Canal has to be speeded up. Searches for oil and ore have to be conducted in Slovakia, notably by State Secretary Keppler.

In the second part of his discussion General Field Marshal Goering took up the Jewish problem. The Jewish problem had to be tackled now with all methods, because they have to get out of the economy. However, the wild bustle of commissars as it developed in Austria has to be prevented under all circumstances. These wild actions have to cease and the settling of the Jewish problem should not be regarded as a system of providing for inefficient party members. Thereupon Ministry Councillor Fischboeck was allowed to speak. He revealed that in the beginning there were 25,000 commissars in Austria. Today there are still 3,500 who are useless almost without exception. In Austria the party is of the opinion that Aryanization is a duty of the party and that it is connected with the recompensation of the old party members.

In Austria there is still a total of 2 billions of Jewish property. The large enterprises are being bought up by the Control Bank; it is difficult to oust the Jews from the small industrial enterprises.

General Field Marshal Goering took a strong stand against the opinion that the Aryanization is the duty of the party. It is the duty of the State alone. However, he could not release foreign exchange for shipping away the Jews. In an emergency situation ghettos should be erected in the individual large cities.

State Councillor Schmeer cautioned against more lenient methods in the fight against the Jews; Jewish labor units should be established, then the people would emigrate of their own accord. State Councillor Neumann warned and expressed the opinion that one should use more precaution in this matter, particularly in Austria.

Thereupon the meeting was quite surprisingly closed by General Field Marshal Goering without recording the minutes of the meeting or making decisions.

HG.

Material for the Conference with Goering on 25 Nov 1938 (General Keitel, Brig. Gen. Thomas)

27 Oct 1938 W.Wi Id.

For the consideration of the assignment of tasks to people, state and the Armed Forces, judging of the requirements of raw materials, especially steel, appears necessary.

This is shown as follows, as far as it can be judged from here. The inclosed summary shows that one must count, according to the Fuehrer's directives, on a steel requirement for armament production, which amounts to 1.08 million tons monthly from 1 Jan 1939 on, that is, it must be increased by about 48% of the present contingent. Added to this requirement are the increased demands of the Four Years' Plan, the demands of export and the amount necessary for the upkeep of the production machine of German economy in the amount of 1.83 million tons monthly from 1 Jan 1939 on; thus this results in a total requirement of 2.9 million tons monthly from 1 Jan 1939 on, against which there is only a monthly production of at present 1.8 million tons monthly.

Furthermore, it must be pointed out, that with the increased use of steel, an increased use of the already scarce non-ferrous metals is necessarily coupled; the latter also are closely associated with the procurement of foreign exchange.

The increased rearmament of the armed forces must further affect deeply the supply requirements of the armed forces, especially munitions and fuels. Therefore, it must be expected that the future requirements of the armed forces will exceed the present plans (accelerated program for powder and explosives, fuel program), which will have an increase of the steel requirements not yet planned as result.

Secret

Summary of the Iron and Steel Requirements of the Armed Forces and Industry tons per month

Contingent of the IVth quarter 1938 Contingent of the 1st quarter 1939 Requirement from 1 Jan 1939 on in contrast to the contingent of 1st quarter 1939

I. Armed Forces 584,333 573,133 1,088,300 —515,167

II. War economical organization of German industry 306,600 306,600 613,500 —306,900

III. Export in case it is possible to reach the stage of beginning of 1938 380,000 380,000 550,000 —170,000

IV. Upkeep of the production machine of the German industry 582,800 582,800 582,800 ——

V. Other requirements 83,500 83,500 83,500 ——

Total 1,937,233 1,926,033 2,918,100 —992,067

Summary on the Iron and Steel Requirement of the Armed Forces (tons per months)

Contingent of the IVth quarter 1938 Contingent of the 1st quarter 1939 Requirement from 1 Jan 1939 on in contrast to the contingent of 1st quarter 1939

Army 300 367 266 000 525 000 —259 000

(For fortifications) (86 667) (85 000) (165 000) (—80 000)

Navy 78 000 74 000 140 500 —66 500

(For "Gruenewiese") (- - -) ( - ) (35 000) (—35 000)

Air Force 166 400 191 133 247 300 —56 187

(For fortifications) (13 333) (15 000) (15 000) ( - )

Reich communication measures [RV-Massnahmen] 39 566 42 000 175 500 —133 500

(For increased extension of the Reich railroad) (- - -) ( - ) 130 000 (—130 000)

Armed Forces Total 584 333 573 133 1 088 300 —515 167

Chief OKW 58a 40 38 top secret 1157/38 top secret 7 Dec 1938 Top Secret 7 copies 7th copy [in pencil] To the State Secretary Neumann Received copy without receipt K. 12 Dec 38 Documents for the conference at Field Marshal Goering's on 13 Dec 1938 with Supreme Commanders General Keitel, Neumann, Koerner, Gen. Thomas.

To the Supreme Commander of the Army } the Supreme Commander of the Navy } the Reichs Marshal of the Air Force and } one copy each Supreme Commander of the Air Force }

The Fuehrer and Supreme Commander of the Armed Forces authorized me to inform the Supreme Commander of the following:

The strained financial situation of the Reich makes it necessary that for the rest of the current fiscal year 38/39 the expenses of the Armed Forces, which in the last months under the strain of extraordinary circumstances have undergone a very considerable increase, should be lowered again to a level which would be tolerable for some time.

It will be at the discretion of the Supreme Commander to decide what measures should be taken for this purpose according to the priorities in the armament program. According to the Fuehrer's request.

ARMY

The equipping with arms will have first priority, the providing of ammunition and the building of fortifications for the army will be considered in second place only.

NAVY

The building of ships, of ports and docks will have first priority over all other requirements, also over that of providing ammunition.

AIR FORCE

The equipping with arms will have first priority, the providing of ammunition will have to be considered in second place only.

If necessary, the initiation of new enterprises will have to be delayed, the execution of current enterprises and orders will have to be distributed over a longer period of time. The allotted quota of raw materials which will be decreased starting 1 Jan 39, will also compel us to a certain extent to do this. It has to be achieved that

in the Army in the Navy in the Air Force

during the period from 1 November 1938 to 31 March 1939 (end of the fiscal year) not more than

(Army): 3.7 billion RM (used until now 4.9) (Navy): 650 million RM (Air Force): 2.5 billion RM

should be expended in the form of cash and delivery treasury scrips.

It is not yet definitely established how much can be allotted for the next fiscal year 1939/40 in the form of cash and delivery scrips. At present, the branches of the Armed Forces cannot expect greater quotas than the following:

5.2 billion RM for the Army 1.4 billion RM for the Navy 4.9 billion RM for the Air Force

signed: Keitel

W H 58 a 40 38 g K 1157/38 g K Top Secret Copy for information [illegible signature] to the Chief of the Air Force the Chief of the W Stb Chief of the War Industry Staff Adjutant 1 March 1939 Draft To the adjutant's office of General Field Marshal Goering.

On behalf of Brig. Gen. Thomas I request an appointment for a conference for the general before the departure of the General Field Marshal on following urgent subjects:

1. The branches of the Armed Forces—particularly the Navy—submitted requests for additional amounts of non-ferrous metals and of steel. General Thomas requests instructions what attitude he should take in regard to this question during the absence of the General Field Marshal.

2. The General Field Marshal has to make decisions in 2 matters concerning foreign policy.

[signature illegible] Captain.

TRANSLATION OF DOCUMENT 1316-PS

Working Committee Oldenburg B.Nr. 15/41 g.Kdos. 21.3.41 2 copies 1st. copy. TOP SECRET Note for Files.

Regarding the discussion held on the 21.3.41. at 11 o'clock with the head of the department.

Top Secret Present: General Thomas, Colonel Huenermann, Lt. Col. Luther, Major v. Gusevius.

From the Quartermaster General: Major v. Altenstadt, Min. Dir. Sarnow.

Major v. a. develops the idea of the Quartermaster General regarding the employment of his organization. The Fuehrer had laid down that he would appoint his three commissioners in about four weeks time. Only then would he lay down the directives for their activities.

The Quartermaster General thinks it necessary to create a modest economic organization in the operational area as well, so as to be able to supply the needs of the fighting forces. This organization would later be replaced by the office of the industrial armaments organization. This was to a certain extent a measure of self-help by the Quartermaster General. He would also employ field-commands, which would be manned by individual officials. As soon as the operational area has moved on, the handing over of large areas has been planned. At this time the Quartermaster General's organizations will be withdrawn and their tasks will be taken over by the industrial armaments organization.

Regarding the present organization of the areas he mentioned the following:

Operational Area: Army area Rear area of the Army Political Area: in which the Wehrmacht commanders operate.

In the rear area of the army, the Reichsleader of the SS is first of all responsible for the entire control, except for the economic field. The Wehrmacht commanders are made responsible for the exploitation of the country's industry. According to the general interpretation, this only means a utilization "for purposes of the Wehrmacht". Quartermaster General makes the following proposal:

The department IV-Wi at Army Commands will be enlarged, so that they are able to direct industry in the operational area. For this purpose the V.O. are to be strengthened by suitable personnel who can be employed in the spheres of banking, customs and finance.

OKW/industrial armaments department will put its demands to Quartermaster General. Quartermaster General will pass these demands in the form of an order to the V.O. at Army Commands. The IV Wi will of course receive the technical instructions from Industrial Armaments through the official channels, just as Industrial Armaments is also providing the organization in the form of IV Wi.

The proposal meets with general approval.

With regard to basic directives the representative of the Quartermaster General mentions:

Each army is followed by a security division. For reasons of expediency the industrial armaments commands in the beginning will be attached to these security divisions. As soon as operations have made further progress, the industrial armaments commands will come under the Wehrmacht commanders.

The Quartermaster General thinks it expedient, that the industrial armament Staff should be near to or actually with the Quartermaster General whilst operations are in progress. Only thus can it be guaranteed that the Industrial Armament Staff is kept informed of the progress of the operations as a whole, and of the intentions of the leadership. As soon as operations cease, the Industrial Armaments Staff will join the Industrial Armaments Department, as the inspectorates (with the Reich Commissioners) will then be operating as their economic department. The main activity of the Industrial Armaments Staff will then be properly in Berlin.

The Quartermaster General does not intend to create a Quartermaster General organization for the East. He will attach a General Staff Officer as representative to each Army Group. The Quartermaster General intends to go forward in person.

Min. Dir. Sarnow mentions that there is in existence an agricultural atlas of Russia which contains the latest information about all tractor stations. This atlas is in the possession of Secretary of State Backe. Acquaintance with this atlas is of the greatest importance for the V.O. and the industrial armaments commands. General Thomas orders that this atlas be obtained. On the basis of this publication the Quartermaster General is to receive information on how to supply the fighting forces with circulars containing detailed instructions regarding the armaments department to provide the Quartermaster General with the contributions required for compiling these circulars for the fighting forces. The Quartermaster General's representative mentions that it is intended to attach suitable individuals for the securing of these tractor stations to the armoured divisions.

In these circulars the primary demand made on the fighting forces will be:

a. Securing of all supplies found.

b. Safeguarding of all tractors and fuel in stock.

Quartermaster General states that Admiral Canaris has drawn up a list of reliable people with detailed knowledge of the locality and industry, who are to be employed immediately on entry. For the occupation of East-Galicia, special oil-detachments are to be provided, where possible from the present West-Galicia, to take over supervision of the oil installations in the district of Lemberg immediately.

The Chief of the department sums up:

1. The most urgent task is the strengthening of IV Wi. The staff of the industrial armaments command takes over the responsibility for this.

2. In the rear of the army area it is the intention to appoint a commanding general in the area of each Army Command, under whose command the security divisions will also be placed. Here in the industrial armaments commands are to be introduced and attached to the security divisions. As soon as this rear army area passes into the political area, the armament commands, or the industrial armament inspectorates, will come under the command of the Wehrmacht Commander.

3. The Reich Commissioners take over political administration in the so-called political area.

4. The inspectorates and industrial armaments commands furthest to the rear (western) must be the first to be employed, i.e., must be in front. They are the first to reach their final areas.

Distribution: 1st. copy 2nd. copy Staff of the Industrial Armaments Department Working Committee Oldenburg.

TRANSLATION OF DOCUMENT 1317-PS

Rue Ic Berlin, March 1, 1941 [stamp] TOP SECRET 5 copies, 1st copy Re: Oldenburg Memorandum

Conference at Office Chief, General of the Infantry Thomas on February 28, 1941

Present: General of the Infantry Thomas Colonel Becht Lt. Col. Luther Lt. Col. Matzky Major von Gusevius Major von Payr Major Huch Captain Emmerich Captain Dr. Hamann

The general ordered that a broader plan of organization be drafted for the Reich Marshal.

Essential Points:

1. The whole organization to be subordinate to the Reich Marshal. Purpose: Support and extension of the measures of the four-year plan.

2. The organization must include everything concerning war economy, excepting only food, which is said to be made already a special mission of State Secretary Backe.

3. Clear statement that the organization is to be independent of the military or civil administration. Close cooperation, but instructions direct from the central office in Berlin.

4. Scope of activities to be divided in two steps:

a. Accompanying the advancing troops directly behind the front lines, in order to avoid the destruction of supplies and to secure the removal of important goods.

b. Administration of the occupied industrial districts and exploitation of economically complimentary districts.

5. In view of the extended field of activity, the term war economy inspection is to be used preferably, instead of armament inspection.

6. In view of the great field of activity, the organization must be generously equipped and personnel must be correspondingly numerous.

The main mission of the organization will consist of seizing raw materials and taking over all important concerns. For the latter mission reliable persons from German concerns will be interposed suitably from the beginning, since successful operation from the beginning can only be performed by the aid of their experiences (for example, lignite, ore, chemistry, petroleum).

After the discussion of further details, Lt. Col. Luther was instructed to make an initial draft of such an organization within one week.

Close cooperation with the individual sections in the building is essential. An Officer must still be appointed for Wi. and Ro, with whom the operational staff can remain in constant contact. Wi is to give each section chief and Lt. Col. Luther a copy of the new plan regarding Russia.

Major General Schubert is to be asked to be in Berlin the second half of next week. Also, the 4 officers who are ordered to draw up the individual armament inspections are to report to the Office Chief at the end of next week.

(signed) Hamann Distribution: Staff 1st Copy Rue 2nd Copy Lt. Col. Luther 3rd Copy Planning 4th Copy Supply 5th Copy

TRANSLATION OF DOCUMENT 1337-PS

Decree setting up Secret Cabinet Council 4 February 1938 Reichsgesetzblatt, 1938, Part I, page 112.

For my guidance in the conduct of Foreign Policy, I am creating a Secret Cabinet Council.

I nominate as President of the Secret Cabinet Council:

Reichsminister Freiherr von Neurath.

I appoint as members of the Secret Cabinet;

The Foreign Minister, Joachim von Ribbentrop,

The President of Prussia, Minister for Air and the Air Force, Field Marshal Herman Goering,

The Deputy of the Fuehrer, Rudolf Hess,

The Minister for Enlightenment and Propaganda, Dr. Joseph Goebbels,

The Minister and Head of the Reich Chancellory, Dr. Hans Heinrich Lammers,

The Supreme Commander of the Army, Col. Gen. Walther v Brauchitsch,

The Supreme Commander of the Navy, Admiral Dr. L.C. Erich Raeder,

Supreme Commander of the Armed Forces, General of the Artillery, Wilhelm Keitel,

The Reichsminister and Head of the Reichschancellery will conduct the current business of the Secret Cabinet Council.

Berlin, 4th February 1938. Fuehrer and Reichchancellor, ADOLF HITLER. Reichsminister and Head of Reichschancellery Dr. LAMMERS.

PARTIAL TRANSLATION OF DOCUMENT 1347-PS

The Reich Minister for Nutrition and Agriculture Berlin W 8, Wilhelmstr. 72. 18 September 1942.

To the State Governments [Landesregierungen] (State Nutrition offices) the Prussian Provincial Presidents (provincial nutrition offices) with the exception of the Eastern territories not incorporated into Upper Silesia.

For information of the district presidents [Regierungspraesidenten] and respective authorities

Re: food supply for Jews.

2. Rations.

Jews will no longer receive the following foods, beginning with the 42nd distribution period (19 October 1942): meat, meat products, eggs, wheat products (cake, white bread, wheat rolls, wheat flour, etc) whole milk, fresh skimmed milk, as well as such foods are distributed not on food ration cards issued uniformly throughout the Reich but on local supply certificates or by special announcement of the nutrition offices on extra coupons of the food cards. Jewish children and young people over 10 years of age will receive the bread ration of the normal consumer. Jewish children and young people over 6 years of age will receive the fat ration of the normal consumer, no honey substitute and no cocoa powder, and they will not receive the supplement of marmalade accorded the age classes of 6 to 14 years. Jewish children up to 6 years receive 1/2 liter of fresh skimmed milk daily.

Accordingly no meat, egg or milk cards and no local supply certificates shall be issued to Jews. Jewish children and young people over 10 years of age will receive the bread cards and those over 6 years of age the fat cards of the normal consumer. The bread cards issued to Jews will entitle them to rye flour products only. Jewish children under 6 years of age shall be issued the supply certificate for fresh skimmed milk. "Good for 1/2 liter daily" shall be noted on it.

Jews cannot be self-providers in the sense of any decrees.

3. Regulation for sick persons, etc.

The regulations for sick and infirm persons, expectant and nursing mothers and women in childbed do not apply to Jews.

The regulations of this decree apply also to Jewish inmates of hospitals.

4. Special allotments.

Jews are excluded from special allotments.

5. Exchange of food cards for travel and restaurant coupons.

The exchange of food cards for travel and restaurant coupons may be allowed to Jews only in urgent exceptional cases.

6. Ration-free food.

For the purchase of non-rationed food the Jews are not subject to restrictions as long as these products are available to the Aryan population in sufficient quantities. Ration-free foods which are distributed only from time to time and in limited quantities, such as vegetable and herring salad, fish paste, etc., are not to be given to Jews. The nutrition offices are authorized to permit Jews to purchase turnips, plain kind of cabbage etc.

7. Marking of ration cards.

Ration cards issued to Jews shall be printed over diagonally (i.e. over all individual coupons) with the repeated over-print "Jew". A color in contrast to the basic color of the cards shall be chosen for this. Cards and coupons overprinted "Jew" do not entitle the bearer to special allotments. Cancellation of these coupons before issue of the cards is therefore not necessary.

8. Special shopping time for Jews.

In order to avoid inconveniences in the supply of the Aryan population, it is recommended that the nutrition authorities establish special shopping times for Jews.

9. Food gift parcels for Jews.

The nutrition offices have to charge in full against the rations of the received all gift food parcels from abroad addressed to Jews. Should it be products which are rationed but not regularly distributed (such as coffee, cocoa, tea, etc.) the entire shipment or in case of a delayed report on the receipt of the package, the still unused part—will be made available to big consumers, such as hospitals and will be charged against their rations.

In the decree of 29 April 1941, of which a copy is enclosed, the Reich Minister of Finance instructed the Customs Offices to report weekly to the competent nutrition offices all gift packages, regardless of the quantity of the incoming merchandise, when it is known or can suspect that the receiver is a Jew. In case the report of the Customs Office to the nutrition office is delayed until the food received in the gift package is consumed, it can still be charged against their rations.

Insofar as the State Police Offices are informed of these food parcels from abroad addressed to Jews, they will secure the packages and put them at the disposal of the nutrition offices [Ernaehrungs-Aemter].

For the Secretary of State Reicke

PARTIAL TRANSLATION OF DOCUMENT 1352-PS

COPY

The Leader of the Central Landoffice for the Reichfuehrer SS

Reich Commissioner for the Strengthening of German Nationalism

Berlin NW7, May 29, 1940 Friedrichstrasse 110-112 Tel. 42 38 62 Az. K Al

Subject: Report on the confiscations in the Bielitz District of May 22, 1940

Ref: Your letter of May 22, 1940, Br./Schl. to the Silesian Land Office

Kattowitz Bernhardstrasse 49

I have repeatedly pointed out to you that the Land Office is to concern itself exclusively with the tasks outlined in the Service Directive of Feb. 1, 1940. In accordance with this, the Land Office, in the case under discussion, is also to restrict itself to the seizure and proposal for confiscation of Polish or Jewish private agriculture enterprises that are needed in consequence of the construction of the concentration camp. I forbid you any participation in measures going beyond this and their preparation, such as, more or less, the evacuation, management or reoccupation of the enterprises concerned as well as the accommodation elsewhere of the Polish farm owners. In the same way, the Land Office is to do nothing further regarding the Bielitz district villages named in the report than to undertake the seizure of the Polish and Jewish agriculture enterprises and to propose their confiscation to the State Police. Arrangements which according to the Land Office report have been found too sweeping are in every case to be revoked immediately, in consideration of their invalidity I again point out that as against the other Land Offices, the Silesian Land Office has the poorest results to show in connection with seizures.

Signed: W Baron von Holzschuher, SS Group Leader Certified a true copy Signed: signature Administrative Leader. (L.S.)

Ku/Ni Kattowitz, May 22, 1940 SECRET Report on Details of the confiscation in the Bielitz country

Some days ago the commandant of the concentration camp being built at Auschwitz spoke at Staff Leader Mueller's and we requested support for the carrying out of his assignments. He said that it was absolutely necessary to confiscate the agriculture enterprises within a certain area around the concentration camp, since not only the fields but also the farm houses of these border directly on the concentration camp. A local inspection held on the 21st of this month revealed the following: There is no room for doubt that the agriculture enterprises bordering on the concentration camp must be confiscated at once. Further than this, the camp commandant requests that further plots of farm land be placed at his disposal, so that he can keep the prisoners busy. This too can be done without further delay since enough land can be made available for the purpose. The owners of the plots are all Poles.

The following agreements have been reached by me with the Camp Commandant and the proper measures prepared. The Director of the Branch agency in Bielitz will immediately determine the names of the Polish farmers and will also divide the land to be confiscated into zones.

Zone 1. Enterprises whose plots border directly on the camp.

Zone 2. Agricultural plots with enterprises which are placed at the disposal of the camp for the employment of the prisoners, namely for about 2000 prisoners for the time being.

Zone 3. As in zone 2, with the only difference, that the number of prisoners has increased considerably. Zones 4 and 5 follow them. In the last case it must be determined to what extent it is possible to put that kind of terrain at the disposal of the camp. The result for Zone I must be known within a few days, in order to enable the Land office in Kattowitz to start the confiscation procedures. It will be necessary to state the size of the families whose enterprises have been confiscated, even giving age and sex.

I had the following discussion with the head of the labor-office in Bielitz.

The lack of agricultural laborers still exists in the old Reich. The transfer of the previous owners of the confiscated enterprises, together with their entire families, to the Reich is possible without any further consideration. It is only necessary for the labor office to receive the lists of the persons in time, in order to enable it to take the necessary steps (collection of transportation, distribution over the various regions in need of such labor). Furniture cannot be taken along under any circumstances in the course of the confiscation, the only things left to the Poles, were, anyway, only the most vital items, like bedding, ample food, clothes and other such things.

If the confiscation takes place the Poles will be billeted by the labor office in barracks, put at its disposal by the camp commandant, until their deportation. The deportation of the Poles of further zones will follow along the same lines.

This matter has already been discussed in its outlines with the agricultural management (Ruppert). A farmer will be appointed by the Association of Agricultural Management, who will supervise the agricultural labor of the prisoners at the agricultural enterprises and who, naturally, will carry the sole responsibility for the agricultural measures, which he alone determines.

As soon as the preparatory measures are finished, a meeting will be called on the spot, next week, with the participation of the agricultural management, in order to clear up and determine completely everything that might be necessary. The chief of the Branch Agency Bielitz has been ordered to report on Thursday the 23rd of this month to this office, in order to receive the necessary instructions.

Moreover, I have reached the following agreement with the camp commandant: As there are a number of villages in the district of Bielitz, which contain racial-German [Volksdeutsche] farmers, the existing Poles must be sheltered in those villages in the very near future as quickly as possible, in order to realize a quick consolidation of German folkdom [Volkstume]. The Poles of the confiscated enterprises are taken by the concentration camps then, but not as prisoners [Haeftlinge], rather until the Labor Office Bielitz has turned them over to the Reich as farm laborers.

The following villages are to be considered for the time being: Alzen, Ernstdorf, Batzdorf, Lomnitz.

I have already spoken with the mayor of Alzen, and he will collect all the Poles who possess agricultural property by Saturday, 25th of this month, and submit the list to the Branch Agency Bielitz. The Chief of the Branch Agency Bielitz is requested to get that list personally.

The confiscation of those Polish enterprises in Alzen will also be carried out within the next few days. The Commandant of the Concentration camp will furnish SS-men and a truck for the execution of the action. Should it not yet be possible to take the Poles from Alzen to Auschwitz, they should be transferred to the empty castle at Zator.

The liberated Polish property is to be given to the needy racial-German farmers for their use. The Chief of the Branch Agency must therefore on Saturday determine, in cooperation with the local authorities, the Germans who can be taken into consideration for that purpose.

The list of the Poles to be turned over to the Reich for agricultural labor is to be handed over to the labor office Bielitz, as quickly as possible. Care is to be taken that the size of the family, etc, is also indicated. The Poles in the other German villages of the district Bielitz, are to be determined in the same manner, in cooperation with the various mayors, in order to enable the office here to prepare the confiscation as quickly as possible. The execution of these measures naturally takes place simultaneously with those at Auschwitz. A discussion with the district-leader, the district head-farmers of the association of agricultural management for Eastern Germany [Kreislandwirt der Ostdeutschen landbewirtschaftungs-Gesellschaft] must of course, take place, before those measures are carried out.

signed: KUSCHE

Ku/Ni CONFIDENTIAL

Report Re: Achievement of confiscations of Polish agricultural enterprises with the purpose to transfer the Poles to the Old Reich and to employ them as agricultural workers.

In the Old Reich again and again the complaint can be heard that a shortage of agricultural workers exists, and that it cannot be remedied by any means though Polish farm-workers have been placed at disposal. The employment offices have informed farmers and owners of estates who are looking for workers that it was difficult to get any workers at all from Poland, that the recruiting in the Government-General and also in the Eastern territory was initiated and the Poles who had applied were placed.

A few days ago, the Country Farmers Leader from Neutitschein called on our Office and told us that in his district many lands were still not yet tilled because there is a lack of any workers. The Reich Food Estate has decreed that everyone can procure himself Polish workers in the Eastern territory or in the Government General.

This appears preposterous if one knows that the office of the Higher SS and Police leader as deputy of the Reich commissar for the strengthening of German nationality, Land Office Silesia, cannot perform the confiscations of small and even very small agricultural enterprises for the reason that we do not know where to put the former Polish owners. Until now the work regarding the confiscation of Polish small farms has been limited to racial-German villages. I have already reported on this matter for the county of Blachownia as well as for the county of Bielitz-Biala, in connection with the institution of a concentration camp in Auschwitz.

I have made an arrangement with the Chief of an employment agency to transfer at once for employment into the Old Reich such Poles as agricultural workers who are designated by us.

It is possible without difficulty to accomplish the confiscation of small agricultural enterprises in the villages in which larger agricultural enterprises have been already confiscated and are under the management of the East German Corporation for Agricultural Development. For it is by no means difficult for the larger agricultural estate to manage a few hundred acres, of course consistent with its own character without any particular additional expenses. It is a matter of course that above all Polish arable lands adjacent to the land of the estate should be confiscated and added to the estate for exploitation. Agricultural-technical or other difficulties by no means can occur. The former owners of Polish farms together with their families will be transferred to the Old Reich by the employment agencies for employment as farm-workers.

In this way many hundred Polish agricultural workers can be placed at the disposal of agriculture in the Old Reich in the shortest and simplest manner. This way the most pressing shortage is removed that is now in a very disagreeable manner felt especially in the root-crop districts.

Besides, the settlers who are still working in the confiscated and formerly settled enterprises and who are superfluous are to be removed into the Old Reich, for until now they were only a burden for the respective enterprise if they are too numerous. In this way, Polish agricultural workers can be made free for the Old Reich.

The confiscations of small enterprises already achieved together with the following transfer of the farmer owners as agricultural workers to the larger estates already in operation have not only brought experience but have proved unequivocably that no difficulties are to be expected. The measures themselves are only a matter of organization, and the success of the measures as proposed by me is based on the good will of cooperation of the other authorities with the office of the Reich Fuehrer-SS as Reich Commissioner for the strengthening of German folkdom. Means of transportation to the railroad can be provided

1. by the enterprises of the East-German Corporation of Agricultural Development

2. by the SS NCO school in Lublinitz and the Concentration Camp of Auschwitz.

These two latter places will also detail the necessary SS-men for the day of the confiscation etc. In case that a place of assembly is necessary for the Polish land-workers who are to be transported into the Reich, for there too sufficient rooms and lodgings can be provided (Kaminiek, Zator Castle, barracks in Auschwitz).

I have already reported on the accomplishment of confiscations in Bielitz county and initiated the necessary measures.

For the purpose of accomplishing further measures proposed by me which envision particularly the supplying of the farms in the Reich with Polish agricultural workers, ask that I be given your consent and the necessary full authority.

(signed) Kusche 5/22/40.

Kattowitz, 16 May 1940. Ku/Ni. CONFIDENTIAL

Report on the accomplishment of confiscations of agricultural enterprises in Blachownia County.

With the scope of responsibility of the Higher SS—and Police leaders as the deputy of the Reichs Commissar for the strengthening of German nationality, Land officer Silesia, a survey was made in Blachownia County since the beginning of April as to how far confiscations of agricultural enterprises in Polish ownership could be accomplished.

Before the outbreak of the war the present county of Blachownia was a part of Czestachowa County (before 1941 this territory belonged to Russian Poland). Only recently, it was decided to incorporate the present county area of Blachownia County into the district of Oppeln. Blachownia is a rather big market-place which in Polish times was even called a Spa.

As the necessary preparations can be considered closed in the following a short survey on the general conditions shall be given as far as they are at present of interest and importance.

At first, contact was made by the Chief of the local agency of the Land Office in Lublinitz, with the local authorities of the Party, the State such as the East German Corporation for Agricultural Development and the Secret State Police, and after a thorough exposition of the aims of the Land Office, excellent state of agreement was reached. Before this the Land Office of Kattowitz had discussions in the same direction regarding the Blachownia County with the higher authorities of the Party and the State District Governor [Regierungspresident], Provincial Governor [Oberpresident], Gauleitung.

The chief of the local agency at Lublinitz had found out that a number of villages exist in Blachownia County the inhabitants of which belong for the greatest part to the German nationality and that particularly in recent years the Polish nationality strongly penetrated into these small ethnic German islands.

Blachownia County comprises about 133,000 inhabitants. Of these, 2,000 can be considered without further ado as ethnic Germans. The number of Jews is estimated at 6,000. 260 villages are combined in 15 greater communities. In 3 of such greater communities to which also the German villages belong, racial German mayors are in office.

1. The greater community Lipie: Mayor Mueller, comprising the racial-German villages of Haukow, Lindow, Natalin and Rosalin,

2. The greater community Scharny-Las: Mayor Lorenz, comprising the racial-German villages of Schwarzwald,

3. The greater community Wrozosowa: Mayor Neugebauer, comprising the racial-German village of Alt-Hutau.

The rest of the communities are Polish throughout and have still an almost pure Polish administration.

To 1. In greater Lipie 20 of the 23 villages are destroyed up to 80%. The ethnic-German families are living in the most primitive conditions, closely compressed into the few dwelling-houses still remaining or into other poorly prepared shelters consisting of destroyed houses even in holes in the ground. The German villages mentioned were founded about 80 years ago by Germans who came mostly from Middle-Silesia (Strehlen, district of Breslau). By hard work they have cleared the woods and created farms.

To 2. The Germans of this village immigrated about 100 years ago from the region of Frankfort on Main and have built up by their own work their economic basis of life.

To 3. In Alt-Hutau, it is a question above all, of Sudeten German-weavers, who immigrated in 1812 from Maehrisch-Truebau. Because of shortage of raw materials for several months the looms have been idle, so that, on account of the cessation of this so necessary opportunity for additional income, the economic situation of these ethnic-Germans is endangered.

In course of time, of course, the Poles also have intruded into these German settlements with the purpose at first to weaken Germanism in its economic existence and finally to drive it out. The agricultural enterprises of the racial-Germans have sizes from 1-1/2 to 5 hectares. In all probability the enterprises have become so small due to partitioning and above all to economic pressure from the former Polish masters.

By the quick advance of the German troops a terrible massacre of the ethnic Germans by the Poles of the Polish soldiery has been prevented. Before the outbreak of the war, the Poles in these German settlements behaved very aggressively against the German nationality and everything was made ready for its destruction during the disorders of war. Even if at the present moment the Poles have become a little more quiet it appears that it concerns only outward appearances. Therefore, it is absolutely necessary to bring about a strengthening of the German nationality in the small far advanced German linguistic islands. These ethnic-Germans make the best impressions. For whole decades they have not abandoned their German national culture despite terror and so on, but have confessed firmly and resolutely. Thus for example, the present Mayor Mueller of Natalin has given to German children during the Polish times lessons in reading and writing on Saturday and Sunday because a school for the German minority did not exist. The ethnic-Germans and above all the youth know the German language not only orally but even by the written word.

In order to break down the Polish nationality most quickly in the German villages, the Polish agricultural enterprises were confiscated. Therewith it has to be remarked further that also Polish enterprises were destroyed by warfare and the Poles too are partly in a situation which gives grounds for fear in so far that theft of German property and other encroachments on the part of the Poles may occur. The confiscation was done in accordance with the directives of Reich Fuehrer-SS as Reich Commissioner for the strengthening of German nationality, on 9 May in the villages of Natalin and Rosalin. As the Polish enterprises were from 2 to about 8 hectares in size and the arable land and the farm-buildings are dispersed within the area. The County agronomist [Kreislandwirt] of the East-German Agricultural Development Corporation thought that a centralized management of the confiscated farms by appointment of a manager was impractical. He resolved therefore to give the arable land, livestock and other property to the trusteeship of needy racial-Germans. The agronomist who was present at the performance of the confiscation accomplished this at once on the spot. However he thought it necessary to take the former Polish owners as farm-workers to an estate in Blachownia County which is also managed by the East-German Agricultural Development Corporation, in order to enable the racial-Germans installed to run the Polish enterprises without friction. Today in fact farm-workers are lacking here, for the former workers were Jews and are useless for such work and moreover, they would endanger an orderly management. However, if the Poles would remain on their former farms the danger of the worst sort of sabotage to the agricultural property now at the disposal of the German Reich would exist. The Poles are paid for their work. The execution of the confiscation as well as the transfer of the Polish farm-workers to the estate of the East-German Corporation for Agriculture Management was accomplished quite quietly and without friction.

In the same way as it was done until now the break-up of Polish Nationality will be shortly accomplished in the other racial-German villages as well.

Because of the extremely good cooperation with the authorities, the party offices and the East German Corporation for Agricultural Development, and above all with the Secret State Police the confiscations etc. will be accomplished absolutely without friction in the future, as well especially as preparations of greatest minuteness will secure the success from the outset.

Before the end of June the soil in the ethnic-German villages of Blachownia County will be taken entirely from Polish hands and be confiscated for the German Reich at the disposal of Reich Fuehrer-SS as Reich Commissioner for the strengthening of German Nationality.

(signed) Kusche

TRANSLATION OF DOCUMENT 1366-PS

[Secret Decree of Reich Minister and Chief of the Reich Chancellery Lammers of 29 August 1943, RK. 99 MD]

BUDGET OF THE REICH PROTECTOR FOR THE YEAR 1944

Introduction

* * *

The Fuehrer has modified the position, duties and authorities of the Reich Protector in Bohemia and Moravia upon the appointment of the new Reich Protector. The Reich Protector is the representative of the Fuehrer in his capacity as Chief of State ... It is his function to confirm the members of the government of the Protectorate, to appoint, dismiss and retire the German civil servants. He exercises the power to grant pardons and to quash legal proceedings except in cases before the Military and SS Police Courts.

TRANSLATION OF DOCUMENT 1375-PS

Castle Krakow 25 Jan. 1940

Minister President Field Marshal Goering Deputy for the Four-Year Plan

The Commissioner General for the General-gouvernement Poland

STRICTLY CONFIDENTIAL S B 1/40

I To the Director of the Service Agency for the Four-Year Plan Major General Buehrmann or representative in Krakow Lenartovicza 13

For the execution of the task of systematically placing the economic strength of the General-gouvernement, within the framework of the Four-Year Plan, in the service of the German defense industry, I give the following

Directives

1. In view of the present requirements of the Reich for the defense industry, it is at present fundamentally impossible to carry on a long-term economic policy in the General gouvernement. Rather, it is necessary so to steer the economy of the General gouvernement that it will, in the shortest possible time, accomplish results representing the maximum that can be gotten out of the economic strength of the General gouvernement for the immediate strengthening of our capacity for defense.

2. In particular the following performances are expected of the total economy of the General gouvernement:

a. Intensification of agricultural production esp. in the larger farms (above 100 ha.) and a planned distribution of the food-stuffs to be requisitioned in order to fill the requirements of the troops, units, and service agencies as well as of the native population, which are not yet fully covered by the present production.

b. Fullest exploitation of the forests, in temporary disregard of forest conservation principles, so as to deliver to the Reich approx. 1 million fm sawmill lumber, 1. 2 million fm of mine timbers and up to 0.4 million rm of fiber wood.

c. Stepping-up of the raw material production in the industrial sector, in particular: in the extraction of iron ores and pyrites in order to cover the local needs of the smelting plants operated in the General gouvernement; in petroleum extraction; in order to cover the militarily most important requirements of the General gouvernement and to export the greatest possible quantities to the Reich; in the chemical industry (nitrogen, phosphate) to provide for the fertilizer requirements of agriculture in so far as they can be covered in the General gouvernement;

d. Exploitation, if necessary also partial expansion, of the industrial capacity existing in the General gouvernement, in order to execute as rapidly as possible the Wehrmacht orders to be placed by the Reich in the General gouvernement while maintaining production of those products which are absolutely vital for the running of the economic machinery in the General gouvernement even if the strictest standards are applied;

e. Maintenance of the productive capacity of those plants to which Wehrmacht orders have not yet been assigned but which are chosen as replacement plants for militarily vital factories which have been or will be evacuated in the Reich;

f. Stripping and scrapping of those plants which have neither been made into armament plants nor declared to be replacement plants, as well as of destroyed buildings;

g. Supply and transportation of at least 1 million male and female agricultural and industrial workers to the Reich—among them at least 7500 000 [sic] agricultural workers of which at least 50% must be women—in order to guarantee agricultural production in the Reich and as a replacement for industrial workers lacking in the Reich.

3. In order to attain the expected performances, provision is to be made:

a. that the organizational measures for increasing agricultural production and for the building up of the live stock, extraordinarily depleted by the war, are implemented by the insurance of the seed and fertilizer supply—if necessary by imports from the Reich—; by sufficient supplies of agricultural machinery from local production in the General gouvernement; by a planned development of the water economy which should be simultaneously designed for the requirements of the waterways and of the power supply;

b. that all uneconomic consumption of wood be avoided and that the shipment of the quantities to be delivered to the Reich is insured;

c. that within the framework of the stepping-up of the industrial raw material production the following are guaranteed: financing through the most extensive possible utilization of the credit system existing in the General gouvernement; procurement of the necessary mining and drilling equipment, the supplying of the workers with the food and articles of clothing absolutely essential for the maintenance of their full efficiency; the shipment, especially of mineral oil, to the Reich;

d. that in engaging the industrial capacity of the General gouvernement with armament orders from the Reich the following be coordinated:

nature and volume of the orders

location and capacity of the plants

raw material requirements and coverage the latter as far as possible out of raw material stocks existing in the General gouvernement—

requirements and provisioning of workers means of transport for delivery of materials and dispatch of finished products;

pre-financing of wages in the General gouvernement and transfer of the proceeds from the Reich;

e. that exact investigations be made in order to determine the plants which are either required for filling the armament orders or continue to work for the supplying of the General gouvernement with absolutely vital goods, or are being maintained as replacement plants, or are to be stripped and scrapped; and that the putting into operation or continued operation of the plants be uniformly regulated and made subject to permit;

f. that in order to insure the necessary supply of Polish workers in the Reich the labor offices harmonize the recruiting with the labor requirements in the General gouvernement; that the shipment will take place early enough to be completed in the course of April; that the transfer of savings of these workers be regulated who came to the Reich merely as migratory workers.

4. For the uniform orientation of the total economy of the General gouvernement towards the tasks now to be accomplished the following additional measures are to be taken:

a. In the food supply of the population it must under all circumstances be seen to it that the persons working in plants vital to life and armaments will maintain their efficiency while the rest of the population will have to remain restricted to a minimum ration as long as the food shortage lasts.

b. Any production which, on the basis of raw materials important for armament, is directed towards objects which in the framework of the present plan are not vital, is to be ruthlessly discontinued in so far as it will not be possible to switch it over to sufficiently abundant Ersatz materials and other materials (e.g. by producing wooden shoes while simultaneously prohibiting the production of leather shoes and boots for the native population). For the rest, all raw material saving decrees prohibitions of production and shipment and orders valid in the Reich are to be carried through in the Generalgouvernement at least to the same degree as is done in the Reich.

c. The shipment of raw materials to the Reich is to be limited to those amounts not absolutely needed in the Generalgouvernement to guarantee militarily vital production. The right of disposing of the stocks of raw materials, half-finished and finished goods in the Generalgouvernement is reserved to your service agency. For the better regulation of supply small amounts of valuable raw materials will be brought into collection depots from scrapped plants and from smaller depots.

d. The supplying of militarily vital plants with coal and the filling of the most urgent coal requirements of the population are to be guaranteed by agreements with the proper Reich agencies.

e. The collection of leather and old material [Erfassung] and the gathering of scrap are to be pushed forward according to plan. In view of the especial conditions in the Generalgouvernement, Jewish dealers who can be freed for this purpose from forced service etc., may also be engaged.

f. A transport plan will be drawn up in agreement with the transportation authorities with the object of bringing transport desires into line with transport possibilities and to arrive at priority scale which will then be made the basis of all further planning.

g. Price and wage regulations, currency protection and credit policy will be harmonized in closest accord between the agencies concerned with the object of creating stable conditions as an indispensable prerequisite for any economic planning.

h. In order to gain a conception of the presumable shape of the payment transactions between the Reich and the General-gouvernement, a payment balance sheet is to be drawn up as soon as it is possible to see to what extent armament orders from the Reich can be filled in the General gouvernement.

5. I reserve the right to issue further basic instructions.

Copy of the present is being sent to the subordinate service agencies as well as to the Commander in Chief East, the Chief of the Armament Inspectorate Upper-East, the Military Commander in Krakow and the Bank Director of the Emission Bank in Poland with the request that the service agency for the Four-Year Plan be supported in every possible way in the execution of its tasks.

(signed) Dr. Frank Certified

(signed) Ministerialkanzleiobersekretaer als Kanzleivorsteher

TRANSLATION OF DOCUMENT 1376-PS

1940 REICHSGESETZBLATT, PART I, PAGE 778 20 May 1940 Nr 87

Decree of the Fuehrer of 18 May 1940 on the Execution of Power by the Government in the Lowlands

In order to secure public order and public life in the Dutch territories taken under the protection of German troops, I decree:

Paragraph 1

The occupied Dutch territories will be subordinated to the "Reichs Commissioner for the Occupied Dutch territories." His seat will be The Hague. The Reichs Commissioner is protector of the interests of the Reich and will represent the supreme power of the government within the civil sphere. He will be directly subordinated to me and will receive directives and orders from me.

Paragraph 2

The General military commander in the Netherlands will exercise military sovereign rights, his demands within the civilian sphere will be carried out by the Reichs Commissioner. He has the right to order the measures which are necessary for the execution of his military mission and for military security. The same right belongs to the supreme commanders of the branches of the armed forces.

Paragraph 3

The Reich Commissioner may use German Police forces to carry out his orders. The German Police forces are at the disposal of the German military commander insofar as the military necessities require this and if the missions of the Reichs Commissioner permit it.

Paragraph 4

For the execution of his orders and the functioning of the administration the Reichs Commissioner may make use of the Dutch authorities.

Paragraph 5

1. The law which was formerly valid remains in force, in as much as it is compatible with the occupation.

2. The Reichs Commissioner may enforce law by decree. The ordinances will be proclaimed in the "Ordinance for the occupied Dutch territories."

Paragraph 6

I appoint Reichs Minister Dr. Arthur Seyss-Inquart to be Reich Commissioner for the occupied Dutch territories.

Paragraph 7

Regulations for the execution and completion of this decree will be issued according to my directives for the civilian sphere by the Reich Minister and Chief of the Reich Chancellory and for the military sphere by the Chief of the supreme command of the armed forces.

Paragraph 8

This decree will be enforced as soon as and insofar as I shall cancel the order given to the Supreme Commander of the Army for the exercise of the complete power.

Fuehrer's Hqs. 18 May 1940

The Fuehrer, Adolf Hitler

The President of the Cabinet Counsel for the defense of the Reich, Goering, Field Marshal

The Reich Minister and Chief of the Reich Chancellery, Dr. Lammers

The Chief of the Supreme Command of the Armed Forces, Keitel

The Minister of Foreign Affairs, von Ribbentrop

The Reich Minister of the Interior, Frick.

TRANSLATION OF DOCUMENT 1377-PS

1938 REICHSGESETZBLATT, PART I, PAGE 111 5th February 1938 Decree concerning the leadership of the Armed Forces— 4th February 1938

From now on I take over directly the command of the whole Armed Forces.

The Armed Forces Office with its functions as Supreme Command of the Armed Forces, hitherto within the Reichs War Ministry, will come directly under my command and as my military staff.

At the head of the staff of the supreme command of the Armed Forces is the former Chief of the Armed Forces department as "Chief of the supreme command of the Armed Forces". He is equal in rank to a Reichs Minister.

At the same time, the supreme command takes the responsibility for the affairs of the Reichs Ministry of War, and by my order the chief of the supreme command of the Armed Forces exercises the authority formerly belonging to the Reichs Minister.

It is the supreme command of the Armed Forces' duty to carry out in peace time, in accordance with my instructions, the preparation of the defense system of the Reich.

Berlin, 4 February 1938.

The Fuehrer and Reichs Chancellor ADOLF HITLER

The Reichs Minister and Chief of the Reichs Chancellery

DR. LAMMERS

The Chief of the Supreme Command of the Armed Forces

KEITEL

REICHSGESETZBLATT, 5th February 1938

Decree concerning the setting up of a secret cabinet council of 4th February 1938.

To advise me in conducting the foreign policy I am setting up a secret cabinet council.

As president of the secret cabinet council, I nominate: Reichsminister Freiherr-Von Neurath

As members of the secret cabinet council, I nominate:

Reichsminister of the Exterior Joachim von Ribbentrop

Prussian Prime Minister, Reichsminister of the Air, Supreme Commander of the Air Forces, General Field Marshal Hermann Goering

The Fuehrer's Deputy, Reichsminister Rudolf Hess

Reichsminister for the enlightenment of the people and of propaganda, Dr. Joseph Goebbels

Reichsminister and Chief of the Reichs Chancellery Dr. Hans-Heinrich Lammers

The Supreme Commander of the Army, General Walter von Brauchitsch

The Supreme Commander of the Navy, Grand Admiral Dr. (honorary) Erich Raeder

The Chief of the Supreme Command of the Armed Forces Lt. Gen. Wilhelm Keitel

The current affairs of the secret cabinet council are handled by the Reichsminister and Chief of the Reichs Chancellery.

Berlin, 4 February 1938.

of the Reichs Chancellery

ADOLF HITLER

The Reichsminister and Chief of the Reichs Chancellory

DR. LAMMERS

TRANSLATION OF DOCUMENT 1381-PS

The Representative of the Reich Ministry for the Occupied Eastern Territories with the Headquarters of Army Group North

December 1942 SECRET [Rubber Stamp]

Political and Economic Problems of the Military and Civil Administration of the Occupied Eastern Territories.

Introduction: The author of this report as representative of the Reich Ministry for the Occupied Eastern Territories with the Headquarters of Army Group North had the possibility to become acquainted with all questions of administration and economy in the Eastern area. An information trip also brought him to the

Army Area B (Donetz) Army Area Don Army Area Crimea Army Area A (Caucasus) into the General Commissariat Dniepropstrovsk into several District Commissariats.

Conferences took place with all commanders of these army areas, the chiefs of staff, the chiefs of the departments VII, the chiefs and experts of the economic inspectorates and numerous economic teams and with field and local commanders.

In the field of civil administration, conversations were held with the competent experts as well.

Result: Necessity for our Present Eastern Policy.

Reasons: 1. The military results of the fighting of this year in the Eastern area is the fact that the fighting power of the Bolshevist army has not been broken yet. One must count on a prolonged duration of the war.

2. The size of the occupied territory results in a noticeable lack of security troops as well as fighting troops. The necessity of the military commitment of the Slav becomes apparent more and more, whether it be for the combatting of partisans and in the police service, or whether it is for use at the front even as will be necessitated by future developments.

3. The war economic importance of the Occupied Eastern Territories increases with the duration of the war. The last inhabitant of the country, able to work, must be utilized in agriculture or in war economic factories. His existence must be assured. Losses of a large number mean damage for the front which cannot be repaired.

4. As in all great wars of all times, one must also reckon with military reverses in the East. In retaining our present Eastern policy, we stand before the danger that one day the dissatisfaction of the population will find an outlet in a general uprising, whereby the supply for the front would be endangered most seriously.

5. It is the opinion of all military commanders as well as of the leaders of the civil administrative areas, to whom the reporter was able to talk, that the present Eastern policy must undergo a fundamental change in its basic points.

The following are the most important problems:

I. The Food Problem

The food rations granted to the Russian rural population do not constitute the assurance of their existence, but only a vegetating for a limited duration. One can never expect the necessary cooperation for the Armed Forces from a population who does not know whether it will still be alive tomorrow, who thus must expect death by starvation and who lived in the Bolshevist period—with the exception of the year 1933, with its bad harvest—better than today. The military dangers described at the beginning increase with the deterioration of the food basis; the tendency to support the partisans increases; the desire to experience again the former Bolshevist conditions comes to the foreground even in those who refute the system ideologically.

The rations allotted at present, which in practice are for the most part not issued complete, are as follows:

(Appendix A 3a)

City and Country: The following food situation prevails: The rural populations, although it has to hand over more today than in Bolshevist times, still goes rarely hungry. No matter whether it was in the time of the Mongol rule, or in Tsarist or Bolshevist times, they were always exploited, and they know methods of secreting food items, which guarantee them food despite of all controls. Today they are even able to deliver at least the most necessary things to the urban population through the black market. The German administration will never be able to develop a system which will enable a 100% seizure of products on Russian territory. The territory is too large for this, and the number of the appointed agricultural leaders is too small.

However, should one of the periodical bad harvests occur in Southern Russia within the next years, as last in the year 1933, then the present lack of reserves would result in a catastrophe in the Eastern territory, the effects of which would be unpredictable for the food situation in the rest of Europe.

The food question in the Eastern territory today is an urban problem. As already explained in the beginning, we must free ourselves completely from the attitude which we maintained at the time, that there were too many people in the territory, and that their extermination would mean a blessing to Germans! The German Armed Forces in the East live on the work performance of the cities there. Complaints about the lack of workers after the execution of the Sauckel action are common.

If we continue to maintain our present attitude, it will be the combat soldier who will pay with his blood for this mistake.

Generally there is no famine yet in the cities at present. The reporter was even able to establish in a city like Kharkov, which had been embattled to the finish, that the food situation is better than in the past year. This condition can be traced back to the fact that the urban population, which for the most part has been living in cities of industrial areas for only one or two generations, has relatives in the country by whom it is supplied with food items in exchange for consumer goods.

Nutrition—Nomadic Movement—Utilization of Labor.

He who flies over or rides through the occupied Eastern area today will notice crowds of people moving along the roads; there are hundreds of thousands of them, and according to the estimate of experts, their number often may reach a million. These crowds are on the move, either to look for food, or vice versa, to bring food to the cities in order to sell it.

The exchange of food items/consumer goods, which thereby is reached between city and country, is vital in the cities in view of the food supply which is insufficiently controlled by the German administration. Suggestions to suppress this self-support of the urban population radically are unbearable, because this would result in starvation of the urban population, causing decreased work performance and finally a revolutionary attitude.

Loss of Working Power

On the other hand, however, a tremendous amount of valuable working power is being lost for a certain time to the utilization of labor through the nomadic movement.

The conclusion therefore is: First securing of livelihood for the important war economically urban population and their relatives, and only then suppression of this self-support. But not vice versa.

Because of reasons of the utilization of labor therefore, all preparatory measures must be taken without delay in order to guarantee sufficient supplies for the urban population of the occupied Eastern territory which is important to the war economy.

The Family Problem

This must also include members of the family, because the male Slav worker like the female Slav worker will starve or practically give up the food to which they are entitled or even the cooked food which is being furnished in the factory mess halls, in order to save their children, parents, or other relatives from starvation.

The claim, that there are not sufficient food items on hand for this subsistence is countered by the fact that by way of the nomadic movement into the rural areas and the black market in the cities, food is supplied which until now has prevented specific signs of starvation on a larger scale.

The Occupied Eastern Area no Surplus Territory.

Despite this the realization that contrary to propagandistic claims the Ukraine as well as the areas of the Caucasus and the remaining Eastern area are not yet surplus areas at present, from which Germany and the rest of Europe could already be fed tomorrow. The truth is that the additional subsistence of Western Europe today can only result in the risk that the Eastern territory will become refractory tomorrow as a result of its present delivery quota, which has been increased considerably in comparison to the Bolshevist period and that simultaneously part of the urban population, which is indispensable for the war economic tasks will approach a slow ebbing of strength, if not even death of starvation.

Ukraine Industrial Area without Agricultural Surplus

The large number of publications, which are being distributed at present in Germany about the Eastern territory, are copies of obsolete or uncontrolled figures from Tsarist or Bolshevist times, which lack any knowledge of fact. As every expert will have to realize, the truth in the Ukraine is that a situation has been created by the Bolshevist industrialization and by the accumulation of giant urban populations in the Don- and Donetz areas, which consumed the agricultural surpluses, which were at hand during the Tsarist period for the overwhelming part in their own territory.

Exchange Trade A Regulator

A part of the food of the cities is being procured through the black market, which for the most part is barter trade. First of all it is a regulating factor. In the Bolshevist era the urban population was better supplied with consumer goods because of relatively higher wages at the expense of the Sochos- and Kolchos peasants. Today these consumer goods are wandering to the country as barter goods for food.

Dangers of the Black Market Prohibition.

The black market has been completely outlawed in individual area as in the Army Area North [XVIII.AOK], in Pleskau and, as the commander of Army Area Don has informed the reporter, in Transnistria, which had been ceded by Rumania.

All these prohibitions had a completely negative result. The goods disappeared from the markets, trading was continued in uncontrollable backyards, and the urban population lacked the most important food items. With a readmission of the markets, these dangerous symptoms vanished.

Black Market Prices

Following are some examples of black market prices in the occupied Eastern territories:

In Areas of the Caucasus 1 Egg RM 1.— 1 lb. Butter RM 15.— - 20.— 1 ltr milk RM 2.60 - 3.40 100 gr. tea RM 20.— - 40.— 1 apple RM 1.— 1 chicken RM 9.— - 10.— 1 lb. meat RM 5.— 1 winter overcoat RM 600.— 1 pr. shoes RM 200.— - 300.— In the city of Kharkov: 1 ltr milk RM 3.— - 4.— 1 kg tea RM 1000.— 1 piece wartime soap RM 7.— - 8.— 1 ltr Vodka RM 70.— 1 cigarette RM -.30 1 pr shoes RM 400.— - 500.—

In regard to all these prices, however, it must not be forgotten that the majority of the scales being executed by means of barter.

The Armed Forces And Increases in Prices

Besides the lack of consumer goods, the German soldier is also responsible for the outrageous prices, because by uncontrollable means he is obtaining funds from home besides his pay, which in army of a million men add up to an imposing sum. Every expert of the conditions knows that the doughboy will today pay any price, because the additional food items are more import to him than money. The suggestion, made to the reporter by various economic inspectorates, that the soldier in future should receive no Reichskreditkassenscheine, but shall receive a type of substitute money for purchasing in post exchange [Marketendereien], can only then be carried out, if the post exchanges can offer to the soldier additional food items, which he would otherwise obtain in the black market.

The opportunity for the combat soldier to acquire additional food items or to purchase them for the homefront must not be hampered, it must not be forgotten, that this combat soldier decides the war.

The Combat Soldiers as the Bearer of Useful Barter.

It is therefore regrettable, that town commanders often punish the soldier severely, who exchanges tobacco goods or minor items of consumer goods which he receives from home, for food items with the local population. It has to be considered that the consumer goods in question are in most cases rubbish of the German household, items which can be foregone by the homefront, but which such as needles, twine, pocket knives, nails, combs, etc., are necessary in the eastern territory and bring good will. The combat soldier, who carried out this barter, procures additional food for the front and/or to the homefront, and at the same time supplies to the East the most necessary consumer goods, which cannot be supplied in general today by German authorities.

For these reasons, the market activity in Russian towns must be retained despite all mentioned disadvantages.

Price Ceiling in the Black Market.

In order not to let the prices rise beyond all limits it is recommended to have a certain control, a price ceiling which equals the present average price; however an experiment which was executed in various towns, is not recommended for imitation, whereby merchandise which was not sold on the market by evening, is confiscated and sold at the local average price.

Establishment of a Central Food Administration.

Despite all this, market dealing can not be a solution. The food supply must be assured by the German administration. Two ways constitute the solution.

1. Further expansion of the factory kitchens

2. Mass introduction of community kitchens.

This system was built up during the Bolshevist period in a form, which an unbiased reporter must describe as exemplary. For instance, there was in the town of Simferropol, in the Crimea, during the Bolshevist period a food trust which supplied 23 mess halls and 15 factory kitchens, by which 50,000 of the town's 140,000 inhabitants were fed. Breakfast, lunch and supper were served and could be eaten right there and then, or were taken home. The appearance of the population and its physical condition at the time of conquest of the territory proved that the food was sufficient. A system of feeding to the population was carried out here, which is also going into effect in Germany in numerous labor camps, and factory canteens, etc., but in its present stage does not yet approach the Bolshevist system.

The Example Simferopol

A Kriegsveraltungsrat, who came from the Arbeitsfront took over these institutions in the town of Simferopol to a certain extent and operated them according to the necessities and conditions of the present. This organization appears to be so successful that its general introduction into the towns of the occupied East must be thought over in manner and extent.

At first, this system is marked that only a single German administrative official can be in charge of the entire system without any further German help.

A Main Food Administration was established for the whole Crimea. The native town administrations supplied the collaborators of this organization, which, in Simferopol alone, runs today 12 mess halls and 49 factory kitchens, in which you can eat lunch or take it to your home. Those working for the German Armed Forces and also some of their relatives, a total of approximately 30,000 persons of the 70,000 inhabitants of the town, are fed. There is mostly soup, vegetables, sometimes fish and meat from deceased animals.

However the distribution of the allocated bread coupons frequently runs up against difficulties, since the bread supply is especially difficult in the Crimea. On the other hand an information service of the Food Administration itself is excellently organized; it consists of native residents, who immediately report, if spoiled, but still edible food from army stores, in the case of small truck farm vegetables etc. can be procured. Furthermore each deceased horse or cow within the territory of the town or its vicinity is reported immediately and examined for suitability.

A special control section of the Food Administration inspects the mess halls, doctors make spot checks of the quality of the food offered. In this case also, native help is used. Further sections of the Main Food Administration are the mill sections, which is in charge of the processing of grain. The section for the issuing of bread and food coupons, the bread baking and trading section etc. A procurement section which has to secure the release coupons from the competent German authorities and must look further for food, and call for it with its own vehicles, is in charge of the procurement of merchandise. All big consumers, such as hospitals, schools etc., have to submit monthly reports of supply requirements. Procurement takes place according to a common plan, so that the German agricultural leadership is not hampered by numerous individual requests.

This example must be imitated in its magnitude. In the field of food, the organizing capabilities of the Eastern population must be used, thus relieving simultaneously the German administrative apparatus.

The example Simferopol proves that we have to use the Slav in the huge Eastern territories for the organization of food, since he is always in the position to discover possibilities of procurement which we cannot do because of insufficient help. Self administration, which goes as far as possible, in the field of food for the urban population is necessary.

No Schematic All-inclusive Ruling of Fundamental Directives.

On account of the gigantic delivery quota of corn, meat, poultry, eggs, oil, to the German Reich, it is obviously not possible in the near future to guarantee to the urban population in the East a 100% supply of food. In addition, as already explained, there is still a great deal of food in the hands of the farmers and of some urban residents which is beyond our control. Thus schematic ruling would therefore lead to the result that the Russian towns would receive food which could be spared in an emergency at the expense of the German and/or the Western European territories. Thus the final conclusion can only be this that at the moment, a general systematic ruling which guarantees the minimum subsistence level of the entire population cannot be carried out in the occupied Eastern territories. On the other hand, the responsible leaders of the occupied territories must immediately receive the authority through directives from competent authority, that they can take immediate measures there, where serious dangers arise in the food situation of those natives employed in the war economy with freedom of decision and responsibility to exceed the presently authorized rations, which secure the minimum subsistence level and prevent the described dangers (loss of Man Power, Anti-German, and Pro-Bolshevist attitude). This system, which gives to the responsible administrative employee freedom of action and which has primarily been developed and tried by the English administration, based on hundred years of experience must be introduced more and more in the German work in the Eastern area. Basic decisions from central authorities, which can be of unforeseen consequence, should only be decided upon then, if the measures have proved themselves by experiments in a partial sector of the area.

II. The Position Agricultural

The food political situation which may become important during the coming year, even for the Reich and the whole of Europe, is opposite to the demand to procure sufficient food for people working in town in essential industry.

The following spot checks of the various Eastern territories give an approximate picture of the situation:

Caucasus

Economic Inspectorates established generally a surplus of farm products for the Reich can not be expected from the Caucasian area. At best, some cattle, sunflower seeds, wool and cowhides could be delivered.

As far as grain is concerned, it must be expected that there will not be enough in many cases for the supply of the local population until the next harvest. For example, details from the District Voroschilovsk (Stavropol): the territory covers approximately 540,000 hectars, 60,000 hectars of which are steppe.

The total area, growing wheat was 70,000 hectars, 10,000 hectars of which were destroyed by the Bolshevists. Of the total area growing oats, approximately 50% of 8000 hectars are destroyed and full of weeds. Of 17,000 hectars of barley, 4,000 hectars are destroyed. 8,000 hectar of meadow could not be mowed. The total cultivated area amounts to only 50-60% to that of 1940. Reason: lack of fuel and labor.

In the District Patigorsk, the conditions are still less favorable.

The example of the development of the Sovchos Semlianskaia near Voroschilovsk is also informative. According to this, there were the following during the Bolshevist time at this Sovchos: