TRIAL B I EF OD SPOLIATION OF FRANC

Economio Division.

I N D E X

~

Io Topical Indexi ,

A. Sect i on of Indictment 1 ..;.~~

B. Legal References 2

c. statement of Evidenoe :3 ... 28

D. Argument and ~oncluBion 29

DocumentsII.

A. List of Individual D t ndants

30 ... 32

3'

1.

Pert inent sept1pn" ot IpUotlll pt

Oount eme - TIl 0.....,...." Pl or Oonap1rftOT

P regr ph W - Stat t ot the ottenee pp . 2-'Par Qgraph If (0) - War Crimes D4 Or1mea lnat

human!t7 ocmn1\t d 1n the oour otXO'U~lna the C';)nsp1r 01 tor 1Ih1eh

t oonsp1fttore are respon ib1e.p. 10.

Count Three - Jar Or1=lI

Pur graph VIII - s tat 1: ot th ottenlie • p. 11

Paragraph VIII ( ) - Pl under of . bll and l'TiYQt.Prop "7. j) . 19

lust Rumanitr. p. 25.

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11.

kea:a.l R'fex:enge ,

1. J..rt1oJ. 6 (b) ot th Oben.r.

War or imos . · ~....lo~iona ot the laws or aUD'tansot wer. ~~ch violati on. ball i nolud , but not b 11m­ited t o, murO.r, 1l1.treotJoent or deport tioD t o 1 velUbor or tor any oth.r purp o ot civi lian population ottor in, OOQup1 d territory•••• plunder ot pubUo or pr i ­Tut pr op8Zty•••• · d. va st ot i on not justified by ~1 1i tllry

11 Q !l81t1'~.

2. , Regu.lIlt1ona. 1907. seation III

~lo1. 43. -rh. utborlty o~ t l le it~at power bev 1nsin t a t po d tato th lwnd ot th oaCU:iJ tlt , th latte rabul t lee all the ur s 1D his po r to stor ond n-am-., u tttr a po albl., pub l i o or d r and sat ty , whilereap aU ,unl s. b olutely prevent d. t h e 1 " i n tore1l.l \ he oountry. - .

iC l al A§.·Fi 11 bOl.lor Md 'r i 8ht s , the H y :J o! ~er ana,end pr 1v£1t llr ope l"'ty . 11 a rel1 l ous onviotions andpre ti e. m t be reap oto4.-

-IT1Y t pr operty oannot b. con/too teo.·

Artiol. 1:\2. ·Requio1UoDo in kind and Dfu'Y1ooa a!ulll not bdemand 4 torzu municlpol1tb or 1nhabitants xc pt tor theneed ot t h. amy or 00 ou,p U on. Th '1 ~all bo inproporl108tl> the r! cur ce a of tbe oountry, and of suoh a nature 8 8 notto involv. the population in t h obligation of tuldng ;tartin t b op r t\tion . or ~ r &QUinat th.ir oountry.-

·Suob roquia1tiona IlJUl servl0 • shall on 1 '0dlCllUld d on tb author! ty or the OcrDlandor in i h 10cal1tyooaupie4.·

·Contrl tiaAa in k1Dd aball, 88 t r , oss i bl e .'b pQ1d tor 1n aha 1t 'not, r Qolpt shall be siven the~Dt ot the amoWlt clue hall mo noon as ;S0 8D1b lt . -

M11Rl. 53.· U'lq of 0 Q\1,PGUQn can only t pO A saiODat oaah, ~.. li b10 a' ur1tie wblob r striotlyt property ot the Dt '" depots of arms, lUI at trll!Jls;Jort •• are. . uppU I, • netr 111, 11 mo'Ysbl propertyb lanai-ns tb St te .hi 1J¥ b used tor t he operat ion attbel r ••

-All ppHano • wb.t I' on ~l8n4. t. a , or 1nthe Cl1r. Dl1 pt d tor th tranami s ton ot new , or t or t ho~rW18port or ;:> er a cme or thins, oaolual". of O{Boa SO\' modby naval law, d.pot. ot anna and, @#tiler l ly , all ld.Dd otawn1tion ot .1iZ, 'fJJJ!J7 b .iz ,f1f i t thoy" helons topri'Yate lD41,,14uals, but mu t be reatoI' d nd canp~ tioDtixed wben p .O. 18 made.'

3. 'l'he law and QUstQ!u of 'lJtU'

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.:<4 ,0{

Statement of Evidenc

I.

INCOUFLETE DISR' GARD AnD IN VIOLATI ON OF THELA lS AND CUSTOVS OF WAR AND THE LA NS OF HUMAN­ITY, THE NAZI CONSPIRATORS RUTHLESSLY EXPLOIT­ED THE NATURAL RESOURCES OF FRANCE FOR THE PUR­POS I~S OF STRENGTHENING THE NAZI WAR MACHINE,I ~POVERISHING FRANCE AND ENRICHING THEMSELVES

AND THEIR ADHERENTS.

The first objective of th Nazi conspirators in the in-

,1n

General Thomas discloses in his note

which would be sustained in the i mpending offensiv •

,\

vaslon of the w st rn Europe n countries, lncludingFranc , w\

I

to despoil them of raw materials nd exploit their industri

so as to strengthen the Nazi war machin and replace th lossesh,

I

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on a meeting !~l~h" \,

Goerin~, at which th defendant Funk was present, held orl 30

January 1940 , that Hitler was convlnc d that a big offensiv

,,the West would bring Bel~ium, Holland and Northern Franc~ under

German control, and that expoitation of the industries in Don'

and Lens , Luxembourg, Longwy and Briey would yield surfic~ent, \

raw materials to sup pler.lent Swedish i mport.s and make up for ~~ r-

man deficiencies. Because of this Hitler had decided to sac- i-·l '.'I ' \

riflce recklessly a ~l ra~ mat rl 1 reserves, without r gar~ : to; \

i 'the future, in order to force a decisive Victory in l Q40. ( H~

policy was to get ev rything possible out of t hese occupied x ", '

\

I. '.

countries and sacrifice all reserves of ra materials rhich

were being held then for future needs . (Ee . 36,)

It was soon apparent that im~overishment of Franc and en­

richment of the Nazi conspirators was also conte mp1at d. In

memorandum of th Commander in Chief of the Armed Forces, of 9

July 1940, it wa n&i nt ed out that the Fuehrer had instructed

the German Armistice Commission to insure that the unoccuoied

part of France would sup ply ra materials and goods i mportant

for the war effort; and that no benefits should ever be granted

to the unoccupied t rritory at th expense of G r many or of the

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oCC'U t:lod Fre nc h t rr1 tory, hut thfl f'orrr.or shoul d serve a s a

cur e of upply for Germany. (Doc. 113)

In th f irst Dr rt of n or dor cone rnlng th expl o i t a t ic t1

of t he tarn oc cu p od t rrl t ~)r1. s , t o be u bnd t t ed to Go ring

f or hi 81 ns t ur- , cart in ruJ. 8 ere La td do n t o l ·7irlo Cl nt

hi d ere s of 14 Rnd 26 August 1940, whi ch had direct d t hat

t 1 r ge t pos s i bl u ba lUade of r l1W r.-.a t r1 ls in t · e se ter-

ritori • In ord r to 11eviat the burden on Oar n armam nt

pr oduct i on and incr s th G r man • r c p city. Th dr a t t

prorld d that th r VI mater1 Is, IT nur cturlnK t abl1shment

nd kill d worker of tho oecupl d eountri s re to b

transport d trom th rn t rritor1 9 to th inn r "OerlIl n

conomy. ~ cturing t bll hmants hlch er not need d

(KC 222)

tor th r' S nt

ot an inventory.

r to re i t r d nd mad the subject

Th ~l hr r's opinion s g in quot d t etlng or

20 S pte ber 1940, t V'lh1ch G ner 1 1< i tel VIas pre nt, to the

treet that it th lin ot de re tion prating t two p rt

ot Franc should pre nt th viv 1 of t economic llfe of

t country 1t would not me n anything to the N zi consplr t or •

Hitl r ld the neh d 10 t th r and ould ve to pay

tor It. It the country should become restlv th re ult would

j~ t be Shooting and po slbly total occup tion or the country.

All cone .ion d to the Fr nch ould hava to be paid for

d rly with d l1v rl from th unoccupied t rrltory ·or from

th i colonie • (EC 409)

II.

THE ~ AZI CONSPIRATORS DEGRADED THE STANDARDOF LIFE OF 'THE PEOPLE OF FRANCE AND PRODUCEDSTARVATI ON BY STRIP PI1 G THE COUNTRY OF "FOODSTUFFS •

The · normous q ntltl I of food t uff obt lned by t he

consplr tors and th lr adh rents in F'r nce are a pp rent\. Th

Pr sid nt 'or the Fr nch d Ie tlon t t h . Arm! tic Cot'4n1 9 i on

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on 2 July 1940, stated,- that since the d y of the Armistice

the German troops had s questr ted food and products indls­

pensab1 to the civili n population. Altogether 24,863 tons

of mer chandi s had been seized. (EC 187)

A report of the German Military Commander in Fr nce, of

10 S ptember 1942, indicat d th t French agr1cultur had made

during 1941 the following deliveries of foodstuffs to Ger ny

and to the German Armed Forcesl

Whe t and 0 tHay and str W'Me tCooking oil

ore than 1 million1,100,000

160,0005'3,000

tons"""

In addition, large quantities of fruit, ve getables, win

and ca~~ed fish era deliv red, nd,A1s c -Lorrain 180 w s

provided with meat, wheat and veg tables. (EC 267)

The Presid nt of the rench del g tion for economic

matters at the Armistice wrote to the President of the

German delegation, Hemmen, on 19 Febru ry 1941, appe ling

to the Germans for h lp in avoiding br kdown of th

French food mark t. A comp rison is mad between th food

consumption of the Frenchman as comp red to the German, sho ­

i~the low food ration of the former. The writer obj ct

par t i cul ar l y to the sep r tion of the French popul tion into

two categorie those working for Germ ny, who get an

adequate food supply; and the rest of the country, who liv

in mi s er y and di tre s. The weekly me t ration of h avy

workers in 'Germany as given s 1200 gr~ comp red to 360 gr.

for the French he vy worker in Fr nee. (EC 322)

This note was followed by another, requesting the

cancel1 tion of deliveries to the Germans of large quanti tie

of foodstuffs which wer e due, nd requesting that the individu 1

purchases of Ger man military and civilian p rsonne1 in Frane\

be drastic 11y curtailed.

The Chi ef of the Hi gh Command of th German Arm d Foree;\

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, ,

~. ; , .. " ."

admitted in a report of 18 March 1941 to the Ministry of

Foreign Affairs that the assertions made in the French

note w recorrect. The German note admitted that the food

situation in France was extrem ly critic 1 and might lead

to unforeseen cons qu nces. Disapproval was expressed at

inad quate feeding of the French, solely on the ground that

it might lower th working capacity of the population and

thus int rfere with the execution of the German armament

orders. (EC337)

The German attitud tow rds the critical food situation

in Franc is shown by note of 6 November 1941 on a report

cone rning three memor nda.ot the French government to the

Ger n government, the Military Commander and the German

Armistic Commission.

Th Fr nch gover nment h d sked for a decrease of the

contributions in kind of France for the occupation troops,

as fixed by the Mi1it ry Commander tor the year 1941-1942.

Th note dr watt ntion to the s riou tood shortage, stating

that all classes of peopl , including children, were affected,

nd that th working capacity of the French w ~ diminishing.

The Fr nch government pointed out that France was not obliged

to support the occupation troops with contributions in kind,

but only in mon y payments, and that requisitions were

permitted under Article 52 of the Hague Convention for the

support of the occupation troops only and in proportion to

th re ources ot the country. Whereas, he pointed out, the

'rench deliveries so tar mad were far beyond the capacity

of the country and their stocks of food were exhausted.

Certain figures of the French food situation are included

in this report.

In spite of these clear indications of the serious

short g s of food in Fr nee, the German Mi l i t ar y Commander

thought that a demand of the German Ar my for increased

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deliveries of foodstuffs could be met, and rejection ot

the French demand for a decrease in deliveries was

therefor recommended. (EC 269)

III.

THE NAZI CONSPIRATORS SEIZED RAW MATERIALSAND INDUSTRIAL MA~II~~Y IN FRANCE~ REMOVEDTHEM TO GERMANY, AND USED THEM IN THEINTEREST OF THE GERMAN WAR EFFORT AND THEGERMAN ECONOMY.

On 17 Sept mber 1940 a d cree w s drafted tor the

signature of the president of the Reich Defense Council

concerning the systematic exploit tion of occupied western

territories for the purpose of the German wnr economy.

Directives ere giv n to use the raw mat ri Is to th

largest possible extent for the support of the German

armaments program and the incre s of war production.

(Ee 222)

The President of the Fr nch delegation at the Armi tic

urotested ag inst the 1 rge scale sequestration by the

German troops of raw materials mainly destin d for priv t

industry, and warn d that standstill in the Prench plant ,

due .to lack of raw materials, would result. (EC 187)

A report of the German Uilit ry Commander for France

of 10 September 1942 cont 'ins the following data and

observations: The French production was placed at the

serKice of the German war production to the gre t st xtent.

Since the Armistice 4-1/2 billion R worth of German orders

were placed in France. The French contributed to the

Germans 73% of the norm 1 annual Fr nch consumption ot

iron, amounting to nearly 5 million tons. From th Arm1 t1ee

to July 1942, 225,000 tons of copper wer delivered by Frane

to Germany, amounting to 80%; 5700 tons of nickil or 86%;

55% of the French aluminum and .80% of the magnesium produc-

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tiori. For her own n eds France retained only 30% of

the normal production of the wool industry, 16% of the

cotton production and 13% of the linen pr oduct i on .

The total French production of locomotives and

the major part of the machine tool industry were put at

the disposal . of the Germans. (EC 267)

It was the policy of the Nazi. conspirators to ship

as many machines as possible from the occupied countries

to Germany in complete disregard of well settled principles

of international law.

·An extract from a study (on "Reconversion of the

Economy"), prepared for the German Army High Commard in

Decembe~ 1940, by Lt. Coloncl Helder, states as follows:

"In view of th shortage of machines,particularly high cl ss tool machines, thevarious German agencies were instruct d toput such machines into workable conditionas expeditiously as possible and in gre tnumbers, without reg rd to the owner of themachines! and then cause their transporta­tion to Germany. In this regard, machinestaken from government controlled or ownedenterprises re considered as ar booty,while compensation will hav to be paid forthose which ar privately owned. In thisconnection no attention was paid to thinternationally recognized principle ot 1 w-­as also codified in Section 946 of the GermanCivil Cod --that all movable oeject whichare affixed to real estate must be consideredfixtures of the latter." (p. ?7, par. b)

(EC 84)

In a note of 23 S ptember 1940 to Mr. Hemmen, the

President of the German d~legation for economic matters

to the Armistic , the President of the French delegation

for economic matters stated that machines had been taken

fro plants and factories to such an extent that the

conomic life of France was gravely enda.ngered, "Machines,"

he said, "were exported to equip German industry", and

stressed that this was not contemplated by the Armistice

greement. (EC 190)

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A communication of 24 December 1940, b tween the

same parties, protests against the removal of machln ry

by the German uthorities from French plants, including

a r olling mill and machinery from certain oil refineries.

In all the cases mentioned the companies r fused to

surrender the material, but complaints to th K1litsry

Administration in P ris had proved in vain. (EC 217)

The defend nt Goering ordered the r moval of church

bell in France, remarking that no church bells would be

removed in Germany until 11 bells had been removed in

France.

The milit ry uthoritles were of the opinion that

this ord r would not be carri d out without the use or

force. They felt that the r 11gious fa lings of the

population would be offended nd that this would arouse

opposition to the occupying force . ' (EC 323)

As part of the design .t o supply the armament industry

in Germany with m terial trom the oceupi d w stern

territories, a program for the removal of copper and le d

from transmission installations of power distribution

plants in the occupied western countries was institut d

by a decree of 31 May 1943 of the Reich minister of

Armaments nd War Production, the defendant Spe r. (EC1Dl)

IV.

THE NAZI CONSPIRATORS CONFI SCATEDBUSINESSES AND FORCED THE COMPANIESTO CONTRIBUTE TO THE NAZI WAR PRO­DUCTION. IN AN ATTEMPT TO GIVECOLOR OF LEGALITY TO ILLEGALACQUISITIO OF PROPERTY, THEY FORCED.OWNERS THROUGH SALE OF SHARES ANDOTHER MEANS TO GO THROUGH THE FORJ4SOF VOLUNTARY AND LEGAL TRANSFERS.

(a) The Nazi conspirator confiscated plants an~

removed ma4hinery against the .wl~ of th French owners.

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In a letter from the Armament Inspector of Belgium

to the Suprame Headquarters of the Armed Forces, of

15 November 1940, the remov~l of a mineral oil d1st111a-

tion plant of the "Societe Gonerale de s Hui l e s de Petro1e",

in Courche1ettes, Fr ance , was advocated, in Bpl te of the

r Jusal of th~ Board of Directors to sell the pl ant to the

G rmans. As an agreement could not be expected, the letter

stated, only confiscation and requisition were pos s i bl e .

The Armist:tce COIll.'1lission was to be advised of the planned

d molition and removal, although tho Rei ch Ministry of

Economics had probably already contacted it in this

respect. It was admitted that the plant could only be

removed under military protection as sabotage W3S expected.

(Ee 218)

A communication of 9 February 194 ) , from the Army High

Command to the representatives of the [I'our Year Plan in

Berlin, indicated that the confiscation of an oil mill

t LaVergue, Dunkirk, had been effected on the orner of

'''.ot the High Command, and that the 'Rammar-Werke OsLmue t.z" had

' been designated as receivors. An earlier l otter from

representatives of the Four Year Pl an to the Arrrry E:tgh Command

had recommended this confiscation. (£C 176)

(c) When the Nazis did not sei?;e the plants them~elves

they for~ed the owners to operate th~m in the 1nter~sts of

German armament.

A German Army report of a conference on 6 September

1940 indicates that when the F~ench ~overnment consented

to have Schneider & Company manufacture gun barrels and

other gun part s for German armament, t ho I}ermans pr-esorrtad

, '-., • ;"1,. -

the company wi t h terms under which the work was to proceed.

The general superintendent stated t ~~t t he Schne i der Company

would accept the Ger man terms but thHt they re garded the

"I

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. ,/",r

".r

agreement as imposed on them ag inst their will. (EC 37)

(d) j.he acquisition of ownership shares in dOmesti~

and foreign countries was An tnt gral nart of the Nozi

conspirators' program to obtain control of the lndustrlea

of the occupied cOuntries, including France.

In a memorandum of 2 August 1940, to the Reich

Minister 'of Economi cs and others, Goering stated that

the goal of Germany's economic poliey was to increase

German influ nce in Foreign enterpri.es. He emph sized

that it was necesssry to xploit every opportunity to

attain such an influence and · t h~ t ca pit I would be

transferred from Germ nr to the occupied territories

to facilitate the purchase of economtc ~nterprises by

the Germans. To this end he recomm nded a decree nullify­

ing transfers of shares made inmediately prior to the ntry

of Ger man troops into the country and sl~eested that it

would b~ appropriate to forbid the sale of pr oper t y in

the occupied cottntries to any but German natlon~ls. (EC 137)

A memorandtm of 12 August 1940 indicated that the

question of obtaining control of j oint stock comp~nies in

France by acquirin rr the shares held there ~as to b

discussed wi t h the Mi ni s t r y of roreign Affairs, the

Reichsministry of Rconomics and oth~rs among the Nazi

conspirators. The regulations outlinad included the

prohibition to sell, transfer, d stray, hide or e1ve

such nhares as security for a loan . All sh8res would

have to be registered and deposits of stocks in bank8

would be blocked. Punishments w re to he prOVi ded for dis­

obeying the regulations. (EC 40)

It is suggested that the cooperation of the French

companies is to be obtained s much as possible without

the use of force, but if the officers do not accept the

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direction of the Germans they re to be dismissed and

replac d by "useful" persons. (EC 136; EC 40)

(e) Th~ attention of the ~azi consnirators wa~

attracted particul~rly to the acquisition of sh~res of

foreign enter~rises in SOYthA6stern ~urove .

During a discussion held on 16 August 1940, at the

lnistry of Economi cs , the supplanting of French and

English i nve s t ment s in the 30utheast area in favor of

Gerrean interests was advocated and the acquisition of

ex> ntrol over the Mi nes de Bor was c1 ted as an example of

hat could be accomplished a Long these lines.

It w s agreed that the Germans should attempt to

cqulre shares 1n the companies in the southoast t once

and that the bill for the same ~ould be presented at the

p ce treaty. (EC 43)

(f) Foreign exchange and gold coinage was seized

to facilitate the acquisition of tho raw materials,

manufactured uroducts. and perticlpations in France .

In memorandum of 6 November 1940, to the Reich

Ministries of Finance and Economi cs , the defendant Goer i ng

ugg sted that tho seizure of foreign exchange in occupied

France would stron~th6n tho Na zi war potential and could

be u~ed, in addition, in negotiations with the French

government, in the for ot pressure, as a means of obtain­

ing concessions in oth r fi Ids. (EC 325)

In a letter of 28 January 1941 from the President of

th French delegation for conomic matters at tho Armistice

to Mr. Hemmen , the Pr sident of the Ger man Economi c Delega­

tion, reference ~. s made to therelea se by the Germans of

blocked gold coinage and foreign ba.nk bf.LLs , deposited in

banks in the occupied territory, on condition of transfer

of the same to the Relchskreditkasse. The pr e s i dent objects

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to the r et that th R 1eh8kreditk 98 W s pay1nc higher

pr 1c th n t t fix d by the Dank of Fr ne for th

property, compl ining th t the proe dur tnt rf red with

Freneh control of foreign xehange nd viol ted the Fr neh

regul tiona. ~e ar ued t hat by r1x1n~ h1gher pr 1e s than

the Bank of Fr ance the Retch kred1tk sse contributed to

the development of bl~ck stock ' r ke t . Obj etlon wa

also tnk~n t o t he 111e p,sl confiscation of F.o1d nd

for f gn. I!xchang practiced by t.he G rman authorlt·ies in

Fr nee. (EC 328)

A copy of n lAt ter of 16 October 1943 from th Chiet

of the Mi 11t ry Administration 1n Fr nce, acting a

Enemy Pr ope r t y Cu todlantto

the d rend nt Goering, reveals

that over the protest of the Chi f of ~11itaTY Admin! tr ­

t1on, tho rapr ! ntatlv of the JUnistry or Economies ,

of the Four Ye~ r PJnn and of the other 1nt8r~st9d encl.

had re olv d to utilize the total available en my prop rtr

d posited with v rious banks for the purpose of flnancin

G rrnan Qr n n~nt ora r ! to Fr ench i~du9 try . For thi

purpos~ the Aneroy pr oper t y , amountlnr. to bout 1 billion

ranes, wae..· tr nsferred to the A ro Eqnk , a Ger man bank

in France. ( Docum .nt in files of OCC , Nur nhe r ln Wor k

. Shee t R~ rerenc . 56-B . )

v.TFE NAZI CONSPIRf; TORS ATfD !h1\ IP. t' ')fl -=RE~~S

HAVt. ~lRI'I''l'f.m THEIR (/11: S'rOF:Y ,)!-o' ,~.t.tF. ;1ET~ODS

PURSUlm BY THEM IN THE BXPL'~ ITAI'I:-m OFOCCUPIBD FR Ji.iCE AND HAVE DESCHIBl':n THEsr:cCESS UL RESULTS mTn WHI CH HFoIR PLANSTO DESPOI L AND FLUNDER nl~ COUNTRY FORTHEIR BEili:,FIT WErrE: It.'ET .

The introduction 01' the It ;'; r Hi toryl!, of ~hG Deren e

Economy nd Ar nt St rr Franc (Vol. II, from 1 Oeto r,

1940, to 31 Dec rob r ·1941) 8U mar1zed th N z1 pro~ram

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for th e rly period ao tollowo:

' f Thr ph..~ e sen 01 arly rfJoogn1z din th exploitation of oooupied Franoe . Int he i 1 t phus ,whioh ae virtually oonclud don Oot ob r 1. 1940, tbe t ek 1 pr imar i l y tocolleot booty_ In t hi pba th legalcono pt or t h Hagu R enl tlon in gar dto t h 1 nd au to of ar on 1 nd arnot yet trlotlyob rv d. The main ·pur po ei to g tout ot 0 tllrough izure( H oohl gno,hm ) or purohane at nominal pr 10 nth trial ot for the G man armament(Krl g f rt1gung) . In th B oond phne , whi ohlast 4 until bout th middl of 1941

it he

m:d.n 0 j ot a. to obtain raw materin. e andf i nish d good . 0 t h t Fr ance Ins bou~~tout t hrough gular pur oh aes l~ne B l otprl 0 a gradually 11 ap t Ii. to t ho n l ov 1 .Sino them1 (~dl 0 1941 ' nob indUlrtry hasotart d to work for th G rmtn armam nt andelmultan oualy th oftioes in Pranc f or theal l ocat i on of ordna.noe ord r8 (R11etungn-di tellon) h.I,lve gun an a ot i v i ty which i oi ncr easingly ol m1lar to that of tho oorrea­pond Lng offioe ( Hdatungsdientetollen) in t hehome l and . "

VI

·~ H . '; NA'71 C01~S?IRA't' n;~~ '1 ~A!!O:D ~XT~JIVE

PURC}lJ\. t" " (.IF' A. i~.. ~AT ': ~lA I.;.: l ~ NUF'ACTURF.....tjHODUC:'~ L YR !~:~C E , 'i'HROUGH THb I t;, roSlTIOlfOf OCCU i" ;\ 'ION L't:..VI l: ' ·~ P;\}'\ I N F.XCESS OFOCCUi-' J\!101 ~' :~ ~ t TO rus '~1m OF IC~..I '0Tllf'. ', ~l.:" -,.. A, n THgIR AmV..R . .t.; t- D oro PRO­.u TK £.RWAl ~'CON(MI C SUf 'f1.E,l · !,CY CVKF: &UnOrE.

'T"h N z1 con.p~ tor x cted occup Uon co t t . the

French in OUD t8 Il.r' tly in axe. of th na ot th,. eee P¥ 1na

force • 1'h e xC ' lve unt • re tl t d inth lAlr •

por t 1on or h occu tlon co"ta ccount 1 t tAl4l¥ ap nt by the

conop1r~tor tor r t ri , to d tuft • eurit.1 t! ot.her

xc s1v exaction, but 1~ r

t. r1 15 wai ch were div rted t

w r the f inanc i a l oure a vi

to G rmany. 0 t onl:;

ran e lou l,y d plet. 4 b1 the

mat 1 1 r cure d ' nut t.m-e4

pr oduc t diverte trom nc to G nil ny t...lo}roWlh pureb •• s out.

of th urplu f und not s;xInt by t he 1 at oceup ion tor 1~1

n d •

ih r cords of tb ~ 1ch.kred.1tk e r x.n 1ned y l/ . 'N .

0 tro w, u. fi . Tre url of f l e 1al p10y. 4 byth u. S. • G-~

Div! 1on, D n XP rt in t1nlUlc lin t1 t.1on. Hi reDO", 0

the us by t h G ot occupat1on coa paid by th ~en h i

baS d on hi xamln tlon of t he R i ch kr

Qonv ation with R. i ch nk director ~11a .

til 8, &nd on

tor oe~up \1on coat are tTh to 1 rench y nt

in the r port t )1. 6 billion • R 10hBb Director 11& a

tAd

1t

that, of thi um. bout 6. 3 b111ion 'R we u ad r or purpos.. ~

rel t d t o t h n d or th occupation •s • S t.e tit ot

11 t Ene 108

lob bank I)1.r Qtor

2 of "t.ro. port,.

This ti..RUre. corr pond!na to about. one-firth or the total

oecu,pilt10n co ts pa i d ' by Fronce, do II not. 1nclud • 1ah 7hsv ~ n p nt i ctly by 'th ". A t r it. reat~J

to t. h d 0 t h occupyinJ( toree t but a ut. h1 1

inad qu t in or tlon t ttl- pr e t tJ,m •

- 15-.. ...'.-

A record ot a me ting of tt101ala ot the Four ~ 1>11- Pl n,

o 10 U{n1utry and otb~r , da t ed 21 Nov b r 1942, oontains

th tolloVf~ 'or kaown or the t'1ture u t.o be mad of Fr ench

eceu t.1on paymon ttu

Arm¥ pundi t ure in occupied Fr unQG

Additional Ar ray exp nd1ture ot thA Y in occupied France 1n no w ycc r.n eted ~ 1 t.b t h occuptlt1on

Army UP nd i tur It for b1 okrut purcha e

500-525 milli onEW Monthly

75-100 a11 1110nttl[ monthly

1200 million "ft{Mont hly

Lt . Kor 1can report No. 16, par a . 2 ~r I h:co.nom1c Anal,ysi and Cond n­

a t i on - 1766 - PS.

An Ii t 1m t • nado b.Y the " rm DIi, ot the to till ~unt ot

olaclc tnar~ t ~urchtl. 8 6 ~1d from th occu;.;~tion ac count , i nc l u ding

t.hQ .de di r ec t ly by th rme4 t or e t c rr i ved a t the 4igur. of

3 bi ll10n RM.

Lt . Korican report Mo_ 14, f~r • 5,re I Econo~io Ana ly i a fmd Cond ensa­tion - 1168-?f:.•

Th fo1lo~1ng quotation , t ken trom t he Os t r ow r ~ort , i llu ~­

tratas ho . t h oocupation coot account in th Re i chBkred1tkass ,

in P ri a, we s t up from the b ginning to take e~~e or ~non­

occu tion expenditure •

tfTb Re 1cb k "1 t,ka . in Par i Iaalntain d t ....o seU

ot occup t10n co t acco'unt •

"Account A tld ita 10 al.lb-acoouI1U, 1::lto wld ch '

pay en It t var io~s Re i ch Mi ni a tr1e t

o rUi in J, .i~h g ne1 i, or for u aJ$ c lti.d ~ur;."Osea .

~AcCOUA~ S '1ntu whioh p ym nt~ wer e made f or di pOBa l

b.,y tb ~ h cht. Th. ctu 1 xpendi tour a of t h cccupa-

t,ion ar~ were de ough I~C COunt a.

Be loh ~1ni" r of F1nanc~ . This cecum 0 1 Ii d , as

OOIl .a Franc began to mak OCCl.1 tion co t pa"JI'ien ts .

-I&-

ffi f Oll t. ' oCCU ~ t Ion fund . -r om this Ilc c ount tun

re tr8 n rerr d to the v rio u ub-..eccunt.s t or

pur poseG other t.h n x p nd! lurEs ;'0 1'" aotua l oecUiJfl tioD

co sts. Tr n t rs i nto Account A. 1 r rr. ade · lot

Account (rou hly 1,200,000 R .) . Th ub ccountA

w r u d to m~ke p ent tor the tollo in. purpo e ,

J une 1 940 tooend 1,241

Ie Ai r i r enc~',

ot

d . i ch i ni t r for r.>con(Primarily for t h bUY!uRojotea" , 1 0 tor th purchs curlti 8 and D via n).

A 1

A I I ore l en J ( f 1c@ (~or propel~ldApur" se i n f'r nc ).

21,000,000

. III nt up~ rt to d ad at ofIn Franc tor

1,500,000

" IV ·' e i ch Mi ni s t er t or Tr n port tion(.Pur-aha e ot 8 curl to1 ) •

" V .r ri a(n.1ch Aof m t and ' j t

,,00,000

19,000,000

;. VI &xob~ by th B nJc. of r no. ot ..not tor p@r on au t d trom,,; 1 c - Lorrain

900,

f., VII F'1nanc:in,Q: purcb. ~o rth Pr. DC by~ ' out IJ ny.

r u r 1ntinery in

I VII I Comp n t i on t ordeut2 ch anrt Yol k

to R l eh s ­in rr nc •

8, 500,000

j\ J X ; ~a l of T nc~ fraI~c 8 to til Re ich(Co~nodity por t a into Al &ce • .Lorr i n ).

66,000.000

! X. r o f . uc t10n (Purc r.a aIn the R.ich of , oklr r aid ).

o +..r o r or1. t pag 4 nd 5.

6 ~C 2)2 and 82 for turth~r vi~e ce . taco unt 6 t t h .xelu l v 41 pos1tion

ot t h \i n1s t er of Finane •

Compl p1ntll

occ upat ion fund •

r r.: d e. 7; ~ in t t h 1 r ge c h wlt.hdra 01 tro

- I T-

o uzUc t ioD t t h "'. Arm! t ic t;omm1 10n t tb

~t10 in r11, ted 4 :I 1944, t d th~t t h pr vio

in the Gerllan Army " cup t ion Coot a A.ccount 3" had be n

eel up in t h b ek mar t purohaS ,1 r 11.

tutur hou14 t ' keD to trlct th u

d t.h t i n the

ot occu t10n coats

lund tor urpo not reI ted to the Wbrmacbt.

o trow port, - 010 ur e , 1, paa 18.

On , 'ebrurarj' 1943 th french in! t r or 1' i rumce campl 1n d

t on, t t h G n Arm1 tic 1 gatt on , ain t t h large

o h withdra 18 by th Re lob Jut d1t.lu1a in ! rise A orandum

ot a d1r ctor ot th I f rrt to ttl! pr t st , Gtat d

t t uch lar c h w1thdr 1 would

ftort to 8 bi l 1 e th curr ncy

po~ i bl 11 Fr nc h

11 as t pl c t h f ~n&nc

ot the ranch [,1. t on a sound b is. Th ore kdo n of t.h wi th...

dra 1 t or J n ry . 1943. ho d t hat ot 440 mi l l i on RM t ok n out

300 iUion re requlr d f or ~urcha i n the bluck mar k t,

leQv1Jl,,1;t only 140 million au i.~or normal army r qu1remonta.

tro- r port , Rne10 ur NO. 1 , paS- 29 .

U e ot occu t10n pa ant out I d ot t h n ~ of th occupa­

tion m¥ 18 f urth r d n tr t d by 1 t ~r ot 19 J n r i 1944,

fro th G n rmi tic 1 ua tion for Economic Att ire to t •

re l@ Ollie,

1 94) th r ".

ho 1nsl toha t b t. •

an v 1labl 1 c

2 5 Jun 1940 nd ) l QeD.Lt:Htr

of b~ut 678 million R . t rom

• tot 1

Of thi

ncb paym t t or oocupation c t ot OV r 25 billion RU •

1 ne , 585 illion r v J. lable f or .'len r f.tl 'ftjecu -

't i on eo t II pu.rpo.. 'ne! the re.t plac d t th d1 po ~ al o f

t h Mi n i s try tor ~onom1c Aft 1r and otb r rmon overnm nt

01 •The 1 tt. r al 0 aho~ th 41 1,r1bution ot p a t xp ndi t ur 8

through enoi I of th '.::. brm cht 'in a or o d tHUS, I li n d t o r t h,

P e t 1 purpo of t h IUni try for ·conomi c Att -1r und oth r

c i v i lian g nc1e • Th t1L'U , ot co ur-s , do .n ..... t ho to t

xt nt ev n U at ~ . y lwv spent til mon y t

th 1r Cl1 po 1 Cor oth ·r t n OOC Up Ll U on a rm purpo is .

-J.8.....

o tro report, ~nclo Itr It pa f1. 20.

Th f 11o\<l1 D~ doc nts aLae 111u t ra t th t aus of OCCU -t, i on fur d e .

Th '.pen a for t he tran t: r ot p CkH' by the troo pa in

~ r · no 'to \ ~ m any re to b t~k n out of t h fund.

"'C 198.

TIl ~.Ju. pr CO mIDQnd ot the Ar <1 For ee 1n f Dt,<unber, 1940,

I nG i~t d that i t vhoul d dispo or til "ecc up t1~n cOBt If account.

nd t ha.t i t 1J con nt nhOlll b obt in d for d 1 v ri or tor 1

xch~~e (in F~nc ) to 10 titution not co nn at d Ji th the rmed

f or'ce o , i n ord r t ho t t h 1s surplus might b used f or

of t h ?our Ye r r l n.

EC 204.

tha t. 8ubstQntJ. 1 tund from the ocou tiOD

costs cc'unt re plnc d t ~~. d1 61 1 or R nnd P t x. 'M'l.

purchEl 1~ enc1e , op r th

control ot the tlin1 try ot AT' ment and n1 tion RDd , to

xt nt in t h c of ROr(e t • !.tin1 try of f£conom1c. peet 11:1

in buy i ng up trnt iie t ri 1 tor us 1n G Dy.

R rr.men . PI' i d t o f th n ,\ 1 tic 1 g tion tor

Ec onocni c t t ,rs , nt t in hI report.

ItTh mon y pal out or the ccu ' tlon f und didnot only s rv to t ~ke Q ,r ot th troops end to buildm1 11 tp.~J ' l~ nt in once, . but it wn to a very con.1~-

~bl xt nt u d t o buy mer ch ndl tor ny,rntainlj< for th trao in the & t. Th f i.'.at ot thed va Lu t 10n ot th lut in conn cUon with the gre tpurch~ G . t n ce tty to a na much mer on.,on t he 'bl c m r t i n ord r to m teria.11ze th .. pur­c hi: se lti. It th1 d v lopm nt gO f) on, th eeeunt, ofooeu!,lat ion cost ~ i l l b xhau ted wi t.~n t BOntha. tl

r;c 42.1 •

.t\noth ottici locum nt, ot 24 AUgust 1942, dlecuJI in th

new Fr ench r qu i ts for diminuti ·n ot th OCCU tion co te. t

tha t t h 1nor n d xp ndi tur out. or OCCU ' t10n f unds ~. to M

tra ed, in p rt, tQ increa•• purcba a o! 'm reb nd1Be fo r t h t

nd t or G m any, and to a oon.a idernbl i ner ~a 8 in Btrat gi c coo­

truct1on. Th 1 ttor point s to the t at t.1Htt th~ French Gov m~

nt uld r 1~t ~.in i ncross i n th da11,y pa.ym~t6 f or t he OCCUP 6 -

t 1QD ccount and ould b bl t o poi nt to t he tao t that exh~uation

ot t.tl tUnd~ in the occupQt,1on ccount could bo tr¢ic d t o th 8)!: y na.

1t a not d 't,i~ d tor th ocou Uon troo,b)u.

sc 83.

Th impov r1s hm nt at and burd n on F,.anc r ult i ng fro m t he

l 'vy ot .xc aiv occupation QO(ta ust be con 16 r d i n conjunotion

wi th th G 1 QD de bt in the el a..r i ng ccount.. The G rm&.n d b t in

t n el.ar1~ b C COW to a s 4.4 bill i on R{ a s 6 rly S ptemof.;fC' , 1 94).

'n1 n t liIult ot expendi tare by both mQthod a a ·th a.t wor th ot

r aw 1·1 18, foo d and 1!ilAZlut. c t ur ed a r t i e l ee , . as well D l/'rellctl

o r ab1p snar-es Hi cor.por !J: tioufl t pa d to til Ge r man B wi thout

any corre por~lnA b net1t ccru1ng t o t h Yr ncb. (Os trow Rep . , p .4)

Th aotivity r ~rt ot t he Ge n Arw14t 1ce Del ge t i on tor

ono 1c :atters, r1ttt!o bl H mm 11, poin't, out Lh t tor a l l t.b

terl 1 ontr1but.ione ro0 d~ i.ly France tor t h b net1t of " rmaIl Y,

Gor ny had p~1d prac tiQ~ll¥ nothinR, b cauc t he goods ~ re paid

f rout ot the ocoupation co t an~ t h ele r1~ aoe un ~u . , ~~ ~

king & Y ot ~r t quantl t1 ~6 of Sood without corre vondi ng

conom1,c compeno t10n brou.r.:ht bout incr at:l1n:.:. lntla. tion i n Fr ~~n c e .

!\C 423.

It i s cleQr tro th 1r ire \Uu) of occup ation fund t: t t h

G did not l imi t th~ .lve at 11 b~ any oonc~pt~ of lnt~r-

tlon 1 l a w t,o '1la t t h Y co uld do with the r unds , 't'hi £: 18

further hown by some ot t h lr own 6 t Bleats concftrll l ng t he l a w.

In lett r f'rom th G rman Fi nanc e Mi rd t r to Goer~ n d e tne r-a ,

d t,ed 9 s pt ewber 1940, t he wr i t er pOi ntn out that ther i ' no doub t

t h 't t he tJ nr.&nS ar ntltled to pay tor exp naa s 1ncurr d c ut.s Ld

of r c tor t h t,roo paithin. Th au 1 toter, 1.0 veve r , ad.'Ui t '"

t t th y 1M nt. b j ond Vein t.b1s 11.m1tat1on by r uli ng that 'i',1t.h

-20....

r . 9 r~ t o t he us e of t h r no} p~ ym -nt wh i ch do not merve to rd.

t h 6UPvor t of th occu pylnQ troop , no di scus ion of the ma t t er

"" hOul d be h 11 wi h he f1'r enoh .sIQv.er nrn nt.

}tC 01 .

I n r e iX) r't. or t.he Mi l l t. @.ry Admin! t tlon in F'r f.iUc t 1n

c onn ction v1 i th th gr em nt of t h nch overnm t .t o incr. 8

th d~L IJ' occup tion co t paym nt. ~t r 1 January 194] fro 1;

Jli ll i on R1~ t o 25 m.i l l i on mt , it. 1c tat. d t tb lncr t ex-pend l t ur £l is au i nly to xp nditur for up ' 11 a . A dietin •

A9':l"'G a n CO to tor t'ort1ti 9U on. 00

co t~ for bl ck m rk t purchn s . Th f i r t cannot. b discu d,

bu t t he U ~~ of occup t1o~ co te f or b k " rk t purch t to

hl eh 15 a t t r ibut d d 0 0 t ot t h 1nor a

of t he '( ft hr m cht, must be elim1n teO.

VII

t r the oney requ1 n

r n '; Iii t 1 CO!~ ~)PIRAro 0 , III THE FUl~Tllh

} .NCb; or TH,;:;.;I H ptmp\.);;.)E TO !J~; :H'OJ L FR.-XCi:- I.~ r -, ' · ·~ '\o. T ""' 1 L COl " . I-I ~ - I"\r,' · O;'li" ""j ' IO'V l' .~ ;;.. : . , ~,J;1 ... ... A II .. .. .I'. ~ t M CI i l\,~ . • 1.w

t OG. L CURR1~ l 1C'l ~~ Yf.rr ~. . A 'c DISRUPT THEj."rt ::.r·;\,: r1 r.;CONJ Y, pun "W .(·gD~;XT.,~NJ I VU: t.Y

0 .:: l' i~ • •3l.<ACK }/:ATIK:. -:- ~ITE nm:;.;j. .: Pj·Ll ....C .~~;: THf. FRSllCH ras.. .~ LV S ITll?:R TID UGHT:i c: C -; .... 1HG ACCOO1·:7 0 ,' ~ OCCUr; 1 1 'N'A'i ! rJNTrI•

on the b1 ck rk t. Tb1 not

onlj' t.ended to r n.i a the II neral ; lr 1c 1 vel Gnd turtho:.r deba •

th pUT'c r.a ai ~lF- pow~r of the f r anc , but 1Dcr~8 ed the drain OD

u pplles \~!"d ch a uld. or<Unaril' h v gon to th Fr ench , a.lr.ady

heavi l y Ulx d by the eccu tlon fore •

f h cr l t 10n by th Four Y r Pl n g nCJ nd th Econo 1

U1ni s t r J of a central agency for h

-= 2!-

oh s of e rc e . lodl t 1.

in h nob bl c

tic to in! t r ~~dm~ on 2 v b r 1941.

K r1c n repOrt ( upr ) No . 14, par. 1 ,1768 - PS t

A ~~u t: o l' 1'1cl 1 'li elllor e..ndum ot 26 NoV mt:p,'r 1941 o n th~ org n­

1ution t t.b~ Cl rll:an bl nck IIi rk t pur chas e s in f'r anc 6t.r s ad th

t ct \h t t b plaI:J:~~ci b e mar k t oper:t.~t1on ran counter to al l t h.

• n Ith Fr~nc o d i gned to in 'ur eontinu d abi l i ty to

ke the occu~tion pa~mant . Th r pr e n t ativ or t he Vour

Y. Pl n u of t h Ze ono 1c t ni Dt ry , on L~e oth r hand , xpl eined

i h ot Go ring.

doc t di s eQ1~~ t d by 0 0 r1r~, n Corom! s i on r of the

our Y. r 1 n, du t d 16 c mher 1942, ~t.d tt~t t he black

ch dul~d to dr w out of ,~ no con .odi t 1es v· Iu d

t. bout. 1 bi l l i on R within t.h~ n xt f i ve mOl'lthJ1 , Jld t ha t tho u@

thl involv 'd ube~ntia1 burden on th Fr noh ocona 'Y t he act i on

d to 1'. ke pl 0 •

Kor le r port ( upra) Ro . 14,

VIII

r. 4.

TH1:. NAlI CON ~":PI .~TOr'j 5 {JC C~ !' .• ~D I Nr b lH l~. O::; i F RN ri cin NG m ..:J,,'LV~ ~ D THEIR ftDH I 8NT;~ ND Pr:W..~ Ti l l:., :J& ' f. £ C ' csrc SUl~ ?'t:~ :\ ACY

O'll!: '-URGF" 8 O" SPOI Ll f,<CJ FHf ~ C

vi '. iOn' cu . "\-tJ .':.~J7'lT I E:: OF ;:,S;i, EJ1TI ALC,,~ :u.ODITl ~:J /.lill . ccu 'UL,;Tl J) ' 'j~i~LrrH t

131 Ui·.~r.· ~i /~ H;.;.t~ L '''f,L cUm:', ~4 (CY .<Ii..;BY Dl ; 'HUf'TI NG HZS scosoar ,

The Fl- nc b q.ov r nt paid in occupation coo t f or t h per i od

fro 2; Jun 1940 until 5 ~~ ~te.mb r 1 944- th quivfll anl of a p i)rOx-

1 to 1y 31. 6 bi ll i on it , converted t th ottic! 1 r ' t or 1 . \ 20

' t tr • Thl • <: l us1v ,::, f t h C06t vf ~rovid 1n :1 i.,.ua:r-t r s . t or

truO ,,", , t or whi ch U,e Jt'renor. ,go ' r nrae nt, ".

pay tb pr 1c .

- 22-

~l e o obl iaed to

- " t ro ~" rtS ~ ' -o r ' :'J :' ~ 2 , -nc l , ' ~

gq 7 , '-' , 22 , and 23

': report of V e c f' le1' 0 t' tho ~tl i r ::; Adm .\ rd s ~s; t 10n i n Ii"r nee

Ot1 lf te d 1 (ill 0 e i omc urrt i> t' oc cu j fl t 10n cost f>Bj,q'ent u p to 31

l) c~~b.Qr 19 1: 2 ~ 8 1 5. ; ' 'li l l i a n 'it;,: . The r fi por t de d that , in

£ide: i t~ion , he r'r':lnch ttl t 'v pel,y i.n " Qt>:,)ut 40 CJ- 4 ';O mil110n R :

\ 'J rl ' for uart~rs .

7:.e Slamo r vor t ' 0 ' ~ d tha t t1. not e i r c ula t .. on of 1'h nk•

(, 1' ;;'r " 1"~C tr.cr-e s sec O)' 4 ) bl i110n rr- ne ll i n t e mo nt. h from

c t.o ; 't. to 1...~c emb r 1 942.

Th com/or ion r 10 0 : ' 1 R , • 20 trs. 1,ul;Jvoa1 y the C' r n

~ ho \j l <1 be eOm ) GT d 'fiLt h th conv_r 10n 1" t10 of 1 J; : 10 tr •

wh i ch ~i r v~ il d in 1 940, t t he tim. o f t tl t\ j e .tc !!'. The rl ;:ur ..

on annn-, 1 p2;'lr, nts c f Ga r f.}IlY under t h 0. '" f! ~nd 'ounR plsna .

'T". l averGff f' annua L Fr nch pB j' ent 1Pot ra om 7 b1ll ion ,th

mount ed t o 1. 5 bi l lion

Lt . Ko r l c(;ln r ~ rt ~ o . 13, pa r . 32,r e: Economi C , n l,y81s rmd Cond ~ ­t i on, 1741- ;' •

Th OUj.th th ":e r n:ans from tim to tim obt81n e6 h o ~nc tlon o r

t he :- r E.>!lc n gove r nm t'mt in ;ti ch y to r t.h ir h Avy tin ne i Rl )C e tlon

o n t he country , th~ lart number of Prench pr ot t in~ i c t ti t h t

t. e a f f l c iO;i l ccr.s errt, to ~ h ~ ~. e~a<: ti()no a s onlj' oo t.s in d att l'! r t h IS

.t,o b r V~ ln to ~rll'v€1n t ma t te r£! f r om t~ ttln~ wa r s .

1f t 1 be r 10 1942 h n th -'''''r ir.,!in oe cuj -t ec th ·",·r:.o l" f:r ..~ o v ~l'h.. " '<l

of :"'rM1C t.~ , t t. .r-e ca n be no q ue s t i on t h t t h QiP"O tl' n t.s ent.~ re ~

into b : .•f' t;'r cnc}, :'ov ~ . tu, \.' nt ~. i th th-e (~ ~ rtl'.E,n8 'Ii r e o bt.a I n d under

rh~ h t s t o r-y u r' t h Prana. I" B1 ta nc t,o th~ hi 'h t)CCUP t ion

- 23-

nd th Fr enol'l De l e;;, tion a t t h Ar mi s tic · t o ii:.in1att;r ; i ~u~H :en .

r r 1.:1 n1. of t he GerDlu.n ' \ 1 ga U oIL t or j~co nomi c i!,u t ter a a t the

Arm! t ic • f Qr r duct 10n in th I t;vi Ii t o a v rt eccncnu c ce taa-

tro f'h • i ~ conta ined in t.e t ol l ow! ., dcc umen t.s &

EC 83-Lt . Koric Qn r por t (eu pra)l No . 13.p" r . 1, 2 . 3. 4 • 5. 7. 8, ~ , 10. 11 •i z , 2~ . 2~ . 24 , 2~ . 27 . 3t , 32 , j 4 , 35,3 ~ . 3~ t 39, 42, 4), 47 , ~~

IX.

THE DEFENDANT FURl SHARES RESPONSIBILITY. FOR THE EXPLOITATIO OF THE BELGIAN

ECONOllY I N THE JWmER SET FORm ABOVE.

The d rendant Funk w appoint d Mi ni t r or

Economi c in .Nov mber 1937, effective 1, J nuary 1938,

(EO 256, Letter of L mmers to Goering nd !'rank,

10 Dec moor 19371 conomlc brl t on Belglum) and

Pr sident of th lchsbank 19 Januar'7 1939 (Ee 27,

~ ttar or Lammers to RelchJJb nk Dir ktorlum, 20 Jal1U&!'7

1939; see cono 10 brl t on Belgl ). Be IUCC eded

Schacht as PI nlpotentlary tor th ar Eoonomy nd

serv d s PI nlpot ntlary tor Economy at th outbr

of the war in 1939 (Int rro tlon ot Funk by Lt. Colon 1 .

MuTr y I. Ourfeln, 21 Oct. 194;, p. 4) with the duty ot

coord!n ting the ctlv1tle ot the Ministries. (id, p. ,)

In the e capacities the defendant Funk is r ponsib1e

for I

( ) ·!be direction Of th produ;tlon And d1stt1bD­

t ioD 1n the western countries in t he interests ot total

German warfare. including Ger an food reapir@m!nts tor

export to the Re1qn.

1. St te S cretary Pos e t Funk's deput y , in his

ca pacity Plenipotentiary tor Economy (ld, p. ,) was

pI l e d on the st rf of th Quarter star Gener ot th

Ar my High Command in Dec ber 1939 to work on " cono ic

questions" a represent tive of the P1 nlpotentlary tor

Econo=y (EC 69, Memor andum of H Id n, 13 Dece ber 1939;

BC 21, or ndum or Poss , 8 Janu ry 1940). Ther tter,

pr i or to th outbr ak or th r in th W t , th rt r-

ma t r Gen r 1 1 u d • collection ot d cr es for th

control of Belgium conomy promulgat d by the l1it ry

Administr tor during th OCCUP t10n (see bri t on

...25-

cono 1c spoli tlon of Belgium, p ge ). '

2. Imports to Germany 8r controlled by the

Reichs tellen, which w r t up under the Ministry

of Economic in 1934 (Reichsgezet bI tt, 1934, I, 212),

nd whlch contlnu d to function in th t ag ncy until

S pt mber 1943, when thos concerned with procurement

and production wer tr f rr d to the Speer 1nistry

of Armament nd War Production.

(b) The defendant Funk. as Minister of Economi cs ,

was involved in the con(18catlongC plants and machinery

in France. Bnd their remonl tg Otrmany.

!h. Mini try of Economics pI yed n ctlve rol in

the confiscation and requi.itioning of plants nd

machln ry in Franc • (See supra,

(c) The detendant Funk. as Mln1ster or Economics, .

p.rt101pa~ed ~n $he program or obtaining control of joint

at09k compani,. in France.

Th Kinist r ot Econo cs w to be eon ulted on the

que tion ot obtaining control ot the joint tock compani 8

in Fr nce and on the propos d regulation tor controlling

the dispo.ition of share. in those compani I. (e. supra,

(d) The ·dgf endant Funk. as Mlni.tgr of Eeonomics,

was re8ponll~le tor the 14legal seizure of enemY property

And foreign exchange deposited tn frencb banks.

1. Th Minister ot Economics p rt1cipated in th

deci ion to s iz en my prop rty in French banks, tor

th purpos of financing Ger n,&r nt and transferring

it to the German "A ron Bank. (See supra,

2. The J41n1st ·r of Economics wa char d with full

re pon ibility in matt r of for 19n exchange (

) • H rece!ved directlve from the

d t ndant Goering recommending the 8 1zure of foreign

ex chang in occupied France (Ee 325', Uemor ndum of Goering

ot 6 November 1940, s e supra, p. Th re was, 1n rot,

illegal confiscation by the Germans in Franc of foreign

ex chang • (EC 328, Letter of President of Fr noh Dele -

tion for Economic tters to the Armistlo to He n).

(e) Th§ defendant Funk, as 1nlst.r ot Economics,

was responsible for thl 11lega1 expenditure of occupation

tund§.

Transfers fro the occupation cost ccount in the

Reichskreditkasse, P ris, w re made into an ccount placed

at the disposal of the R ioh Mini try for Economics,

primarily for the buying gency "Roge ", ov r which he

ret ined so control, and for the purchase of securltl

•

nd foreign xchang. (Ostrow report, p. 5', enclosure 1,

p. 33; EC 101, Report of Schmld-Lossberg to OCC)

x.THE DEFENDANT SPEER SHARES RESPONSIBILITYFOR THE F~PLOITATION OF THE FRENCH ECONOMYIN THE MANNER SET FORTH ABOVE.

In February, 1942, the d fendant Speer succ eded Todt

as Head of the Ministry of Armaments nd Munitions, to which

was transferr d, in May of the same year, th procurement

and production function prevlou 1y exercis d by the OXW­

Wi.Ru.Amt (Uitteilungsbl tt d s Wi-R~ Amt/OKW 1942, is ue 10).

In M rch 1942 he w s appoint d Plenipotenti ry for Ar

ments Ta ks in the Offic of the. Four Year PI n (

In September 1943, the procure-

ment and production functions or the Ministry of Economies,

along with the Reichsstel1 n concerned with thes functions,

w re transf rred to the Sp er Ministry, which was renamed

"Ministry of Armaments and ar Production" (RGBL 1943, I,

p , 529). .J t-

In thes c p cities the d f ndant Speer is respon 1ble

-27-

torI

() The program tor remgying qQpper and lead from

transmission installations or power distribution plant~

in Franee.

The R ioh minister ror Armaments and Wr Production,

pursuant to a d cree or the Fuehr r, i sued an order on

31 May 1943 tor the r moval of copper and 1 ad trom the

transmission installations of power distribution plants

in the tern occupied countrie. (See BUprl, p.

EC 101, Report or Schmid-Los berg, for the OCC)

(b) for

Armaments and War Production, shar s responsibility tor

the dismantling or machinery in th ocqupied western

regions, in to 8tt forth bove.

The d t ndant Sp r gave ord ra for the carrying.

out ot .m lures to dlsmantl machin ry 1n the occupied

w t rn r glon ndthe Armam nt Mini try arranged wlth

th Rich bank for any financing connected with the

cqu1s1tlon of industri 1 property in the West.(EC 101

and nclosur Sf R port ot Schmid-Los b rg for the aCC)

(e) The defendant Speer, IS Ret£hsmin1ster of Arma­

ments an~ War Produotion, shares responsibility for the

expend1tur,~of '09gupati9n costs tor non-occupatiQn purposes.

Th Reich minister ot Armament and War Production

obt in d cO:"lt:ro1 of the purchasing agency "Roge " on

13 August 1942, and trom then on shared in th control

ot that org niz tlon with the R lchsminister of Economics

(BC 101, Report Ot Schmid-Lossberg tor the aCC). Th

purcha ing genoy ttpim1t x" was an agency or the Speer

Uinl try (0 trow Report, p. 9). The der ndant Speer,

owing to the control xercl d by his Ministry over these

two geneLes, sh res responsibility for their misuse ot

occupation funds on the bI ck.rket and otherwise. (Ostrow

R port, pp. 8, 9, and enclosure, NO. ,l, p. 17)

- .28-

XI.

'j' Hl~: AC'r n OF THE NAZI CONSPIRATORS ASREVEALED BY THE EVI DENCE CONSTITUTEY/AR CRI JJF.S WITTII THE W ANI NG OFARTICLE .6. (B) OF THE CHARTER OF THEMILITARY TRI BUNAL.

A. Such Acta ar. Droh~blttll 121 the HaM !\e gulat l 9D"

1 . The eontrol And cUr,gt10n or Fr,nph production

and d1atr1butlon to • a t 1l tx OX: requirement. in Qlrpny.

Refer to S etian IX t Argument nd Cl)nclulion, or

Lt . S1~g It! brier on Spol i at i on of Bell.

2. Iht reguUlltsm or lpIoMnea.

Re rer to Seot l on IX, Ar nt and Conclusion, orLt . 81 l' s brl t on Spol i at i on or Belgium.

3. In, levy nt ogcupation ghatl" tor »yrpQ'" no~

telated to the ne9~' ot th9 QCQBpatlon ttm!.

R r~r to Sect i on IX, Argument nd Conclusion, ot

Lt . 81 g l' s brief on Spal l tion or 19ium.

4. Ibg flcgu1A1Uon gf F1:!Ilsb 'malnens Inter.st,.

Rafer to S ctlon IX, Argument nd Conclusion, orLt . 8i gel '. brief on Spol i at i on or Belgium.

~ . SW;h aeta eonlt1tut, "nlyna,r ot' vgbl1c or pr1.vate PtopettX"

n1ihin t he meAning of Arttcle 60U Qf thg Charter or tht

Int ernat i onal 1~1}ynal.

?e~ r to S ction IX, Argument nd Concl u ion, ot

Lt . Si egel ' ! brief on Spol l tlon ot Belgl •

- 29-

(L1ate4 in ordel' 1n .hi. t 7&P ar 1 t'M 'brief)

01 t tloD pageot Britt

Be ,65. • No of Geuanl T 0 8't1Da wUhQoertDa ot '0 laDlal'7 1940.

• O. 1D o. of ," 9 h 17 19 O.

•222•• I)raft of Or r re xp101t '10 ot 00­

oup1e4' tern Tenitori. a. tOl' GosriDgta1anature.

409. - pan ot Oontel'ftoe wi tb 1tel of21 5epMmber 19 O.

, 187.. IAttN' ot Pl'e•• ot mn h Del. ,theAm1.tio ot 2 Ju17 1940.

);0 267. - aeport ot GcmIm Kil1 17 ec.mmand torlJ'8Jl ot 10 S pt. 19!t2. .

322. - Letter ot Ph•• of J'S'. Del. tor ioono:n11; at B D. date 19" b. 1941.

IC 337. • Ww ot PI' •• ot 'h.'th Armia'108. t

1. tor io. matter23 Y b. 1941.

C 269. I' pon n tbru = orand oanoern1ngire oou'r1buUem. in k1nd for oocsupation'troops.

,o 84. - stuaT em "re-oonftra1on ot t • e onazqt' b,

Lt. Col. HeUer (UAsteuoruna 4er Win ohaft).4 \~ D o. 1940. extr ot tran, ~e 57. par.b.

~ 19(1. • Lv. or~•• ot Jr. Del. tor Eo. etters tth f.nUa t 10 tl;) , dut d 23 Sept. 1940.

&0 217. - Ltr., dat . 24 ~o. 1940.

323. - L'r. oj' Q.erJDan Amid! e Ocmn1 lon 1n Perito Abet_, d~ted 26 '~ril 1941.

j;Q 101, - Repon ot SobriU.d - Loa ers to th 000.dakd 21 sept. 19l6.

10 218. - Lv. ot nt 1n8pe tlon, elg1 • '0 Su-~ H.Q,. of the A:Im7. dated 15 NoT. 1940.

176. • 1.tr. h'au 0 to Itepn nt i1T ot the 4 ., ar. ~1aA, 4at. 9 reb. 1916 J L1;1'. of • ot 4yeai' Plan to on, tec1 25 sept. 19U. Other

OOlTe.pondenoe. 8 8U'bJ 4t.

'1. -Depon ot. cua'e nee of Sopt. 1940, 'b t nSohne1der un4 00. an4 th Qorman author1il ft.

- 30-

EO 137. - rand trClll~~o Qe u IU.n1 1.7~ Foreign Affairs 1., dated 2 AUg 19hO.

EC 40. - AI raIIdum. with author d d4res8 e.teDdned, 8~e4 12 Aq. 1940. hom tileof :reln1reabe.ft •

EO 136. - Memora ,with Ell" or nd addres88 uncie.tenainec!, 4 1; 12 • 1940. traD tilot eldwirsohaft

EO 43. - Report ot cUllou"slon at the Ml lst1'7 otE c • d t 20Au8. l~O.

so 325. - of Goer1D& to 1Un1.tl'1 of P'orelsnAtt irs, dated 6 NaY. 1940.

1W 320. - Ltr ot Pras ot lI'renoh Del. tR Ao. Mat I'll ttIIeAra1 Ue to , dat a 28 JaD. 19 1.

-- ()oP1 ot Ltr. ot 16 00'. 1943 h-o=. Ohlet ofM111'817}.4 • 1n J"ran e to 1'1116. (Do • 1at11e8 ot OCO 1n rabel'S. or Sh et11 t n S6 .)

EO ~22. - ar HlstorT ot th Del n onomy tstaft Freno , tro 1 Oot 1940-,31 Deo 19U.

• • pon ot 'lI.". Aatrow, U.s. If'reasury ott101al,on Oe n u e ot n h Oeoupatlon Oosts.

-.. 9u=mar1e ot dooum nts 1 t til 8 ot theR ioh8kred1tka'HI on whiob th rep,;>rt 1.baa 8. Enolosur I to the Astrow rapoJ1l.

-- 51; ent of lis, dlr ctor ot th Re1chsb 11kiJ't l «lan t ot .,... Aatrow relati., to hieI' P,lM (to be prooure4)

--- Lt. lCorioon repon Ro. 16, p rae 2, I' onauioAn l)'s1s an4 Go enllst1an-Loo. 1J1".Ret.l?66~

-- Lt. Korioan loeport No. 14. ;>arS6. 1.2.4,5, reEoonazUo S6nAl.T 18 tm4 O0D4ensaUan Doa. V1..,.liet. 1768-.P5

~2. - Ltr. at Ohiet ot SUp OomaanA ot J.z'med'orO-H', dBted 21 reb. 1941.

EO 82. - Ltl'. trem Qel'mB1l ArrA1.'lce Dele aU on tor E om1att r to Mini tl'1' of J'onip J.ttn1rs, d ted

.30 0 ~. 1942.

iC 196. - Ltr. tr th Rei h.D1ni.try of J'1n ee, .1gnedBers-r. to Go ring, dat~ 6 sept. 1940 •

-31-

Citation pagoot Br1ef

204. d rora 8

1 •• dat

&0 423. • 4th Ao~1"1ty F port at the rman ArmisticeII i.gnt! on ' or Eoonomic "attare. Pa r 1s-

1e 13 don, tor the ;1 or 1OO trOQ 1 J'an.-30 1uns 19~2. pp. 162.

EO 8,. • Ltl' tr o.rmen A.rm1etic Del gat10n torBoono.:::l1o tto r ll to b im try at f orei gnAftaire. dat d 24 .Aul. 1942.

iO 201. - Lu. of tb Re i oh nlst r of Finano • sign­ed B~ r, to Goering. d ted 9 sopt. 1940.

EO 61. - Report of Cbiet otM1l1 t41"7 • r. Freno"a ~at1on p ym ut. aDd not. 1roulat1on121 Frana••

-- Lt. Xor1can r port No. 13. pore.s. 1,2.3.4.5.7,8. 9,lO.11.12.20.23.24.2S.27.31,32 .34.as.36,38.39,42 ,45 ,47,48, 1"8. 1i.oolu:m1 AulT 1.tiDd Ocm4enaat10n. Doo. Diy. R • 1741 - ps.

- 32-

Funlt

Spear

Doouments r lied on

EO 218

Work She et Re f . 56 B

EO 40

to ' 25

EO 328

EO 101

Ost r ow r port , p. 5En ol 0 ur I, p . ; ; .

EO 101

Os t r ow report, pp. 8, 9a nd Encl 0 ure I, ? 11.

(All th documents 1n 'th Doaament List· a rill d

on to om xt nt).