dtufail/nuremberg-trials-corpus huggingface dataset:
of financing utilized both before and after the announcement of conscription, and the rebuilding of the army, on 16 March 1935. The point is illustrated by an unsigned memorandum by Schacht dated 3 May 1935, entitled, "The Financing of the Armament program, "Finanzierung der Ruestung." (1168-PS) It is not signed by Schacht, but in an interrogation on 16 October 1945, he identified it as being his memorandum. The memorandum reads as follows: "Memorandum from Schacht to Hitler [identified by Schacht as Exhibit A, interrogation 16 October 1945, page 40] May 3, 1935. "Financing of Armament. The following explanations are based upon the thought, that the accomplishment of the armament program with speed and in quantity is the problem of German politics, that everything else therefore should be subordinated to this purpose as long as the main purpose is not imperiled by neglecting all other questions. Even after Marcy 16, 1935, the difficulty remains that one cannot undertake the open propagandistic treatment of the German people for support of armament without endangering our position internationally (without loss to our foreign trade). The already nearly impossible financing of the armament program is rendered hereby exceptionally difficult. "Another supposition must be also emphasized. The printing press can be used only for the financing of armament to such a degree, as permitted by maintaining of the money value. Every inflation increases the prices of foreign raw materials and increases the domestic prices, is therefore like a snail biting its own tail. The circumstance that our armament had to be camouflaged completely till March 16, 1935, and even since this date the camouflage had to be continued to a larger extent, making it necessary to use the printing press (bank note press) already at the beginning of the whole armament program, while it would have been natural, to start it (the printing press) at the final point of financing. In the portefeuille of the Reichsbank are segregated notes for this purpose, that is, armament, of 3,775 millions and 866 millions, altogether 4,641 millions, out of which the armament notes amount to Reichsmarks 2,374 millions, that is, of April 30, 1935. The Reichsbank has invested the amount of marks
In the portefeuille of the Reichsbank are segregated notes for this purpose, that is, armament, of 3,775 millions and 866 millions, altogether 4,641 millions, out of which the armament notes amount to Reichsmarks 2,374 millions, that is, of April 30, 1935. The Reichsbank has invested the amount of marks under its jurisdiction, but belonging to foreigners in blank notes of armament. Our armaments are also financed partly with the credits of our political opponents. Furthermore, 500 million Reichsmarks were used for financing of armament, which originated out of [Reichsanleihe], the federal loans, placed with savings banks. In the regular budget, the following amounts were provided. For the budget period 1933-34, Reichsmarks 750 millions; for the budget period 1934-35, Reichsmarks 1,100 millions; and for the budget period 1935-36, Reichsmarks 2,500 millions. "The amount of deficits of the budget since 1928 increases after the budget 1935-36 to 5 to millions Reichsmarks. This total deficit is already financed at the present time by short term credits of the money market. If therefore reduces in advance the possibilities of utilization of the public market for the armament. The Minister of Finance [Reichsfinanzminister], correctly points out at the defense of the budget: As a permanent yearly deficit is an impossibility, as we cannot figure with security with increased tax revenues in amount balancing the deficit and any other previous debits, as on the other hand a balanced budget is the only secure basis for the impending great task of military policy. For all these reasons we have to put in motion a fundamental and conscious budget policy which solves the problem of armament financing by organic and planned reduction of other expenditures not only from the point of receipt, but also from the point of expenditure, that is, by saving. "How urgent this question is, can be deduced from the following, that a large amount of task has been started by the state and party and which is now in process, all of which are not covered by the budget, but from contributions and credits, which have to be raised by industry in addition to the regular taxes. "The existing of various budgets side by side, which serve more or less public tasks,
task has been started by the state and party and which is now in process, all of which are not covered by the budget, but from contributions and credits, which have to be raised by industry in addition to the regular taxes. "The existing of various budgets side by side, which serve more or less public tasks, is the greatest impediment for gaining a clear view over the possibilities of financing the armaments. A whole number of ministries and various branches of the party have their own budgets, and for this reason have possibilities of incomes and expenses, though based on the sovereignty of finance of the state, but not subject to the control of the Minister of Finance and therefore also not subject to the control of the cabinet. Just s in the sphere of politics the mush too far-reaching delegation of legislative powers to individuals brought about various states within the states, exactly in the same way the condition of the various branches of state and party, working side by side and against each other, has a devastating effect on the possibility of financing. If on this territory concentration and unified control is not introduced very soon, the solution of the already impossible task of armament financing is endangered. "We have the following tasks: "(1) A deputy is entrusted with finding all sources and revenues, which have its origin in contributions to the federal government, to the state and party and in profits of public and party enterprises. "(2) Furthermore experts, entrusted by the Fuehrer, have to examine how these amounts were used and which of these amounts can in the future be withdrawn from their previous purpose. "(3) The same experts have to examine the investments of all public and party organizations, to which extent this property can be used for the purpose of armament financing. "(4) The federal Ministry of Finance is to be entrusted to examine the possibilities of increased revenues by way of new taxes or increasing of existing taxes. "The up-to-date financing of armaments by the Reichsbank under existing political conditions was a necessity and the political success proved the correctness of this action. The other possibilities of armament financing have to
of increased revenues by way of new taxes or increasing of existing taxes. "The up-to-date financing of armaments by the Reichsbank under existing political conditions was a necessity and the political success proved the correctness of this action. The other possibilities of armament financing have to be started now under any circumstances. For this purpose all absolutely non-essential expenditures for other purposes must not take place and the total financial strength of Germany, limited as it is, has to be concentrated for the one purpose of armament financing. Whether the problem of financing, as outlined in this program, succeeds, remains to be seen, but without such concentration, it will fail with absolute certainty." (1168-PS) C. Renunciation of Armament Provisions of Versailles Treaty. 21 May 1935 was a very important date in the Nazi calendar. It was on that date that the Nazis passed the secret Reich Defense Law (2261-PS). The secrecy of their armament operations had already reached the point beyond which they could no longer maintain successful camouflage. Since their program called for still further expansion, they unilaterally renounced the armament provisions of the Versailles Treaty on the same date, 21 May 1935. Hitler's speech to the Reichstag on that day (2288-PS) was published in "Voelkischer Beobachter" under the heading "The Fuehrer Notifies the World of the Way to Real Peace." Hitler declared: "1. The German Reich Government refuses to adhere to the Geneva Resolution of 17 May. "The Treaty of Versailles was not broken by Germany unilaterally, but the well-known paragraphs of the dictate of Versailles were violated, and consequently invalidated, by those powers who could not make up their own disarmament requested of Germany with their own disarmament as agreed upon by Treaty. "2. Because the other powers did not live up to their obligations under the disarmament program, the Government of the German Reich no longer considers it self bound to those articles, which are nothing but a discrimination against the German nation for an unlimited period of time, since, through them, Germany is being nailed down in a unilateral manner contrary to the spirit of the agreement." (2288-PS) In conjunction with other phases of planning and
no longer considers it self bound to those articles, which are nothing but a discrimination against the German nation for an unlimited period of time, since, through them, Germany is being nailed down in a unilateral manner contrary to the spirit of the agreement." (2288-PS) In conjunction with other phases of planning and preparation for aggressive war, there ware various programs for direct and indirect training of a military nature. They included not only the training of military personnel, but also the establishment and training of other military organizations, such as the Police Force, which could be and were absorbed by the Army. The extent of this program for military training is indicated by Hitler's boast of the expenditure of ninety billion Reichsmarks during the period 1933 to 1939, in the building up of the armed forces. In a speech by Adolf Hitler delivered on 1 September, 1939, (2322-PS), which was published in the "Voelkischer Beobachter" under the heading "The Fuehrer announces the Battle for the Justice and Security of the Reich", the following passage occurred: "For more than six years now, I have been engaged in building up the German Armed Forces. During this period more than ninety billion Reichsmarks were spent building up the Wehrmacht. Today, ours are the best-equipped armed forces in the world, and they are superior to those of 1914. My confidence in them can never be shaken." (2322-PS) The secret nature of this training program and the fact of its early development is illustrated by a report to Hess, in 1932, concerning the secret training flying personnel, as well as the early plans to build a military air force (1143-PS). This report was sent in a letter from Schickedantz to Rosenberg, for delivery to Hess. Apparently Schickedantz was very anxious that no one but Hess should get this letter, and therefore sent it to Rosenberg for personal delivery to Hess. The letter points out that the civilian pilots should be so organized as to enable their transfer into the military air force organization. The letter dated 20 October, 1932, reads: "Dear Alfred [Rosenberg]: I am sending you enclosed a communication from the RWM forwarded to me by our confidential man (Vertrauensmann) which indeed is very interesting. I believe we
to enable their transfer into the military air force organization. The letter dated 20 October, 1932, reads: "Dear Alfred [Rosenberg]: I am sending you enclosed a communication from the RWM forwarded to me by our confidential man (Vertrauensmann) which indeed is very interesting. I believe we will have to take some steps so that the matter will not be procured secretly for the Stahlhelm. This report is not known to anybody else. I intentionally did not inform even our tall friend." [Rosenberg, in an interrogation on 5 October 1945, identified this "tall friend" as being Von Albensleben.] "I am enclosing an additional copy for Hess, and ask you to transmit the letter to Hess by messenger, as I do not want to write a letter to Hess for fear that it might be read somewhere. Mit bestem Gruss, Yours Amo." (1143-PS) Enclosed in the report is: "Air Force Organization" "Purpose: Preparation of material and training of personnel to provide for the case of the armament of the air force. "Entire management as a civilian organization will be transferred to Col. Von Willberg, at present commander of Breslau, who, retaining his position in the Reichswehr, is going on leave of absence. "(a) Organizing the pilots of civilian air lines in such a way as to enable their transfer to the air force organization. "(b) Prospects to train crews for military flying. Training to be done within the organization for military flying of the Stahlhelm [steel helmet] which is being turned over to Col. Hanel, retired. "All existing organizations for sport flying are to be used for military flying. Directions on kinds and tasks of military flying will be issued by this Stahlhelm organization will pay the military pilots 50 marks per hour fight. These are due to the owner of the plane in case he himself carries out the fight. They are to be divided in case of non-owners of the plane, between flight organization, proprietor and crew in the proportion of 10:20:20. Military flying is now paid better than flying for advertisement (40). We therefore have to expect that most proprietors of planes or flying associations will go over to the Stahlhelm organization. It must be achieved that equal conditions will be granted by the RWM, also the NSDAP organization." (1143-PS) D. Secret
flying is now paid better than flying for advertisement (40). We therefore have to expect that most proprietors of planes or flying associations will go over to the Stahlhelm organization. It must be achieved that equal conditions will be granted by the RWM, also the NSDAP organization." (1143-PS) D. Secret Rearmament The program of rearmament and the objectives of circumventing and breaching the Versailles Treaty are forcefully shown by a number of Navy documents, showing the participation and cooperation of the German navy in this rearmament program which was secret at first. When it was deemed safe to say so, the Navy openly acknowledged that it had always been its objective to break the Versailles Treaty. In 1937 the Navy High Command (OKM) published a secret book entitled, "The Fight of the Navy Against Versailles, 1919 to 1935", written by Sea Captain Schussler (C-156). The preface refers to the fight of the navy against the unbearable regulations of the peace treaty of Versailles. The table of contents includes a variety of navy activities, such as saving of coastal guns from destruction as required by Versailles; independent armament measures behind the back of the government and behind the back of the legislative bodies; resurrection of the U-boat arm; economic rearmament; and camouflaged rearmament from 1933 to the freedom from the restrictions in 1935. (C-156) This book points out the significant effect of seizure of power by the Nazis in 1933 on increasing the size and determining the nature of the rearmament program. It also refers to the far reaching independence in the building and development of the navy, which was only hampered insofar as concealment of rearmament had to considered in compliance with the Versailles Treaty (C-156). With the restoration of what was called the military sovereignty of the Reich in 1935-the reoccupation of the demilitarized zone of the Rhineland-the external camouflage of rearmament was eliminated. This book of the German navy bears the symbol of the Nazi Party, the Swastika in the spread eagle on the cover sheet, and it is headed "secret", underscored (C-156). Raeder has identified this book in an interrogation and explained that the Navy tried to fulfill the letter of the
of rearmament was eliminated. This book of the German navy bears the symbol of the Nazi Party, the Swastika in the spread eagle on the cover sheet, and it is headed "secret", underscored (C-156). Raeder has identified this book in an interrogation and explained that the Navy tried to fulfill the letter of the Versailles Treaty and at the same time to make progress in naval development. The following are pertinent extracts from the book: "The object and aim of this memorandum under the heading 'Preface', is to draw a technically reliable picture based on documentary records and the evidence of those who took part in the fight of the Navy against the unbearable regulations of the peace treaty of Versailles. It shows that the Reich navy after the liberating activities of the Free Corps and of Scapa Flow did not rest, but found ways and means to lay with unquenchable enthusiasm, in addition to the building up of the 15,000-man navy, the basis for a greater development in the future, and so create by work of soldiers and technicians the primary condition for a later rearmament. It must also distinguish more clearly the services of these men, who, without being known in wide circles, applied themselves with extraordinary zeal in responsibility in the service of the fight against the peace treaty; thereby stimulated by the highest feeling of duty, they risked, particularly in the early days of their fight, themselves and their position unrestrainedly in the partially self-ordained task. This compilation makes it clearer, however that even such ideal and ambitious plans can be realized only to a small degree if the concentrated and united strength of the whole people is not behind the courageous activity of the soldier. Only when the Fuehrer had created the second and even more important condition for an effective rearmament in the coordination of the whole nation and in the fusion of the political, financial and spiritual power, could the work of the soldier find its fulfillment. The framework of this peace treaty, the most shameful known in world history, collapsed under the driving power of this united will. [signed] The Compiler". (C-156) The summary of the contents indicated in the chapter titles is significant: "I. First,
spiritual power, could the work of the soldier find its fulfillment. The framework of this peace treaty, the most shameful known in world history, collapsed under the driving power of this united will. [signed] The Compiler". (C-156) The summary of the contents indicated in the chapter titles is significant: "I. First, defensive action against the execution of the Treaty of Versailles (from the end of the war to the occupation of the Ruhr, 1923). "1. Saving of coastal guns from destruction to removal of artillery equipment and ammunition, hand and machine weapons. * * * "3. Limitation of destruction in Heligoland. "II. Independent armament measures behind the back of the Reich Government and of the legislative body (from 1923 to the Lomann case in 1927). "1. An attempt to increase the personnel strength of the Reich Navy. "2. Contributing to the strengthening of patriotism among the people. "3. Activities of Captain Lohmann. "4. Preparation for the resurrection of the German U-boat arm. "5. Building up of the air force. "6. Attempt to strengthen our mine arm (Die Mine). "7. Economic rearmament. "8. Miscellaneous measures. "a. The Aerogeodetic, and; "b. Secret evidence. "III. Planned armament work countenance by the Reich government but behind the back of the legislative body from 1927 to the seizure of power, 1933. "IV. Rearmament under the leadership of the Reich Government in camouflage (from 1933 to the freedom from restrictions, 1935)." (C-156) The following is a passage from chapter IV: "The unification of the whole nation which was combined with the taking over of power on 30 January 1933 was of the decisive influence on the size and shape of further rearmament. "While the second chamber, Reichsrat, approached its dissolution and withdrew as a legislative body, the Reichstag assumed a composition which could only take a one-sided attitude toward the rearmament of the armed forces. The government took over the management of the rearmament program upon this foundation. "Development of the Armed Forces." "This taking over of the management by the Reich Government developed for the armed forces in such a manner that the War Minister, General von Blomberg, and through him the three branches of the armed forces,
took over the management of the rearmament program upon this foundation. "Development of the Armed Forces." "This taking over of the management by the Reich Government developed for the armed forces in such a manner that the War Minister, General von Blomberg, and through him the three branches of the armed forces, received far reaching powers from the Reich Cabinet for the development of the armed forces. The whole organization of the Reich was included in this way. In view of these powers the collaboration of the former inspecting body in the management of the secret expenditure was from then on dispensed with. There remained only the inspecting duty of the accounting office of the German Reich. "Independence of the Commander in Chief of the Navy" "The commander-in-chief of the Navy, Admiral Raeder, honorary doctor, had received the help of a far-reaching independence in the building and development of the navy. This was only hampered insofar as the previous concealment of rearmament had to be continued in consideration of the Versailles Treaty. Besides the public budget there remained the previous special budget, which was greatly increased in view of the considerable credit for the provision of labor, which was made available by the Reich. Wide powers in the handling of these credits were given to the Director of the Budget Department of the navy, up to 1934 Commodore Schussler, afterwards Commodore Foerster. These took into consideration the increased responsibility of the Chief of the Budget. "Declaration of Military Freedom" "When the Fuehrer, relying upon the strength of the armed forces executed in the meanwhile, announced the restoration of the military sovereignty of the German Reich, the last-mentioned limitation on rearmament works namely, the external camouflage, was eliminated. Freed from all the shackles which have hampered our ability to move freely on and under water, on land and in the air for one and a half decades, and carried by the newly-awakened fighting spirit of the whole nation, the armed forces, and as part of it, the navy, can lead with full strength towards its completion the rearmament already under way with the goal of securing for the Reich its rightful position in the World." (C-156) An