Liaison Staff of Supreme Headquarters Armament Procurement Office (WiRueAmt) with the Reich Marshall.
Nr. 260/41 g.
C. P. 25 November 1941
Ref: Order of the Chief, WiRueAmt, Supreme Headquarters, dated 29 July 1941.
Re: War Economy Notes concluded 30 November 1941 To the Chief of the WiRueAmt .
General Thomas Berlin
The conceptions occasionally mentioned during the reporting period are comprised in the notes of the conference on 8 November 1941. Compare Reich Marshall of greater Germany, report for the V. J. P. Nr. 19 203/9 g.v. of the 20th November 1941. The Reich Marshall has not been in the supreme headquarters East since that time so that no lectures have been given.
In order to preserve presentation with respect to the existing reports, the general principles of economic policy in the newly-
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occupied Eastern territories "based on the East conference" in Berlin of the 8th of November 1941 are stated in the following:
"I. For the duration of the war the requirements of the war economy will be the all-dominant factor of any economic measures in the newly-occupied Eastern territories.
II. Seen from a long range point of view the newly-occupied Eastern areas will be exploited economically from the point of view of colonial administration and by colonial^ methods.
Exceptions will be made only for those parts of the East land which are to be Germanized by order of the Fuehrer, but even they are subject to the principle expressed in paragraph I.
III. The main emphasis of all economic work rests with the production of food and raw materials.
The highest possible production surplus for the supply of the Reich and of other European countries is to be attained by cheap production based on the maintenance of the low living standard of the native population*. Besides covering thereby the European needs for food supplies and raw materials as far as possible, this measure is intended to create a source of income for the Reich which will make it possible to liquidate in a few decades, with utmost consideration for the German taxpayer, an essential part of the debts incurred in the financing of the war.
IV. Manufacturing in the occupied Eastern territories will be considered only if absolutely necessary:
a. to decrease the volume of transportation, (i.e. manufacturing processes up to steel or aluminum blocks),
b. to take care of urgent repair needs inside the country,
c. to take advantage of all facilities in the armament sector during war-time.
It remains to be decided to what extent a resumption of the production of trucks and tractors can be considered during the war (in view of the overburdened European industrial capacity).
V. The development of a considerable consumer goods and finished products industry in the occupied Eastern territories is not permitted. It is rather the task of European and especially German industry to process the raw materials and semi-finished products produced in the occupied Eastern areas and to take care of the most urgent requirements for industrial consumer goods, and production means of these Eastern areas which are to be exploited like a colony. The larger the number of products of daily needs we send to Russia, the greater will be the quantity of raw materials we can extract, the greater will the difference
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in values become, and the earlier will our war debts be liquidated.
VI. To supply the population with high-valued consumer goods is out of the question. On the contrary, all tendencies to raise the general standard of living are to be suppressed right from the start with the most drastic measures. The question as to which kinds and quantities of consumer goods and production means are to be delivered to the newly-occupied Eastern areas is to be settled in conjunction with the Economic Office of the Reich commissars.
The Eastland [Ostland], too, may, at the beginning, be furnished only very limited quantities of consumer goods. The long range order for the Germanization of the Eastland must not be allowed to lead to a general rise of the living standards of all the nationalities living there. Only the Germans living there, or to be settled there, and the elements to be Germanized may receive preferential treatment.
VII. The Russian price and wage scales are to be kept as low as possible. Any interference with the price and wage policy which is to be established exclusively to benefit the interest of the Reich is to be punished mercilessly. The Eastland, too is subject to the principle that surpluses, specifically the agricultural ones, have to reach the Reich at the lowest possible prices."
(signed) Nagl
Liaison of the OKW/WiRueAmt with the Reich Marshall
C. P., 18 September 1941 31/41
TOP SECRET
Re: Economic Notes for the Reporting Period of 15 August to 16 September 19^1.
In that period discussions pertaining to war and general economy took place only on the 15th and 16th of September. Nothing of basically new importance came out of the discussions so that no notes could be taken about it.
The following persons participated in the conference of 16 September which had been preceded by a short meeting on the 15th of September:
The Reich Marshall.
Secretary of State Backe (4-Year Plan). .
General of the Luftwaffe Gosrau (Administrative Office, Ob d L).
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Lt. General von Seidel (Quartermaster General Ob d L). Lt. General Osterkamp (Army Administrative Office). Lt. General Wendersleben (Army Administrative Office). Colonel Baentsch (Quartermaster General, OKH). Ministerialdirektor Riecke (Economic Staff East, 4-Year Plan and Reich Minister, East).
Major General Nagl (Liaison Office, OKW/WiRueAmt). Ministerialrat Dr. Goernnert (Reich Marshall).
Captain on the General Staff of the Luftwaffe von Brauchitsch (Reich Marshall).
At this conference which was concerned with the better exploitation of the occupied territories for the German food economy, the Reich Marshall called attention to the following:
It seems that the Wehrmacht demands too much, especially preserved food from home. With the exception of tobacco goods, chocolate, dried vegetables, etc., all food supplies for the troops, used or utilized in the Eastern territories, have to be furnished by the occupied territories themselves. If that cannot be accomplished, perhaps on account of insufficient organization or out of sympathy for the native population, or because of transport difficulties or indolence, or because the use of preserved foods is simpler, then those reasons must be done away with. On no account do I permit an increased supply from the Reich, which —especially with regard to meat supply—would lead to a decrease of rations for the German civilian population. On no account do I give my permission for that.
The morale at home would suffer from that or become shaky. The home front has to take enough already (bombings, mounting losses, slow successes in the East, and in addition, the fact that this war is a second one within a generation). This would furnish an excellent weapon for enemy propaganda. It already employs these days the method of instructing the populations of the occupied countries to cry for food time and time again, to hide stores, to keep from delivering food supplies, etc., so that every place—and not the least at home—food difficulties and bad feelings associated with the sinking of morale, arise.
It is clear that a graduated, scale of food allocations is needed.
First in line are the combat troops, then the remainder of troops in enemy territory, and then those troops stationed at home. The rates are adjusted accordingly. The supply of the German non-military population follows and only then comes the population of the occupied territories.
In the occupied territories on principle only those people are
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to be supplied with an adequate amount of food who work for us. Even if one wanted to feed all the other inhabitants, one could not do it in the newly-occupied Eastern areas. It is, therefore, wrong to funnel off food supplies for this purpose, if it is done at the expense of the army and necessitates increased supplies from home.
(signed) Nagel (Reich Marshal)