REPORT ON THE STATE OF WORK OF PREPARATION FOR WAR-ECONOMIC MOBILIZATION AS OF 30 SEPTEMBER 1934
Berlin, 30 Sept. 1934
The Reichs economic ministry has been charged with the economic preparation for war, a task considered important in view of lessons of the first World War.
The situation is so much worse now, that the loss of important areas in the East and West has to be reckoned with.
The economic ministry is charged with all industry except actual armaments, for whom the raw materials and half-products are supplied however. Close liaison is being maintained with all other economic agencies.
The work can be divided into two parts. The theoretical part includes the legal and organizational preparation, such as laws, directives. Practical preparation includes building up of stockpiles, new construction of facilities to produce scarce goods, redeployment of industry to secure areas and influence over fiscal and trade policies.
Preparations had to be made for two contingencies, the sudden outbreak of war in the immediate future and a future goal of active mobilization. The first goal was to be reached with mostly negative measures (restrictions) the second one needs active measures and directive.
The task of stockpiling is being hampered by the lack of foreign currency. The need for secrecy and camouflage also is a retarding influence.
EC-128
The organization consists of 5, later 6 committees under presidium of the respective economic ministry officials and keeps in close touch with the armed forces, the ministry of food and agriculture, and ministry of work and the communications ministry. Later this was more centralized under "Committee for defense against economic war measures." The six committees are:
1. Hauptausschuss : General direction of work and organizational basis. .
2. Rohstoffausschuss : Supply of raw materials except
coal and motor fuel. .
3. Kraftausschuss : Coal, gas, electricity, motor fuels, power.
4. Fertigwarenausschuss : Finished products with exception of armaments, price regulations, manpower.
5. Technischer Ausschuss: Technical questions, machines, and standardization.
6. Aussenhandelsausschuss : War economic organization of foreign trade.
The current tasks
The Hauptausschuss coordinates and synchronizes the activities of all economic agencies, keeping liaison with the armed forces. It has obtained action on urgent measures in cases of international crisis.
The Rohstoffausschuss conducted a survey on needs and sources of supply of raw material, the amounts needed by each branch of economy and of commercial stockpiles. Action was initiated to remedy shortages and to redeploy industry towards the center of Germany.
The main work of the Kraftausschuss was the supply of motor fuels. Measures such as storing up reserves and encouragement of synthetic production were taken. Under the assumption that the coal areas in East and West would be lost, stocks of coal were placed in the center of Germany. Cross connection between electric power systems was prepared.
The work of the Fertigwarenausschuss was hampered by the fact that no statistics existed on the demand. An extension survey was therefore conducted, establishing the production, manpower used, materials unused, reserves of industry as well as the demands of public agencies (armed forces, R.R., mail service etc.) and incorporated into a card index system. This survey is to be repeated 2 years. Measures were initiated to increase production in central Germany. A rationing system was prepared for the case of war as well as a price central organization.
307
EC-128
The work of the Technische Ausschuss was limited by the fact that technical problems are much more abundant in the production of war material, which comes under the War ministry, than in civilian production. Therefore the problem was to organize civilian supply under the consideration that most plants would be working for the armed forces. Influence was exerted towards the standardization of consumers goods, especially with the large organizations, such as public utilities and R.R. The conversion to bituminous coal was also prepared. The legal preparations included drafts of laws for the seizure and redistribution of means of production on the export and import of machine tools.
The work of the Aussenhandelsausschuss was started last, as it required statistics from the work of the other committees as basis. It made proposals for the organization of foreign trade in wartime, export and import central statistics on import-export and a survey on the physical equipment for foreign trade (harbours etc.) Studies of the possibilities of barter trade with supposedly neutral countries in case of war.
' Fiscal and Monetary Preparations
Measures were prepared to increase the amount of money in circulation in wartime while keeping the currency stable at the same time. (RKK)
Basic Principles of the Propose^ Plan The aim of the directives proposed is the establishment of strict economy. The uncertainty of conditions under which a future war may be fought, together with the lack of raw materials and foreign currency requires that right now. Therefore strict control of all economic activity is required, with special attention paid to the use of scarce materials (rationing, priority system).
Part B
Directives and Laws Proposed
1. Establishment of 14 economic supervisory boards to control production [Bezirkswirtschaftsaemter] in designated areas.
2.
3.
4.
5.
6.
Establishment of control boards for 17 branches of production (strategic).
Law covering procedure on orders for the armed forces. Law on rationing of civilian consumption.
Law on the protection (licensing) of trade.
Law on the establishment of a commissariat of foreign trade.
308
EC-128
7. Prohibition of export of goods important in wartime.
8. Directive on facilitation of certain imports. (Strategic materials duty free.)
9. Directive on the prohibition of unnecessary goods.
10. Directive on the establishment of foreign trade companies for 7 specified branches of economy.
11. Law on the establishment of the RKK and its functions.
12. Law changing certain parts of banking laws. (Redemption of loans, notes by the Reichsbank.)
13. Directives on the distribution of coal.
14. Directives on the distribution of minerals and soils.
15. Directive on the distribution of steel and iron.
16. Directive on the distribution of non-ferrous metals.
17. Directive on the seizure and use of means of production.
18. Directive on the distribution of chemical products.
19. Directive on the distribution of animal and vegetable oils
for technical use.
20. Directive on the distribution of wool.
21. Directive on the distribution of cotton.
22. Directive on the distribution of cellulose fibers.
23. Directive on the distribution of synthetic textiles.
24. Directive on the distribution of paper.
25. Directive on the distribution of leather.
26. Directive on the distribution of rubber and asbestos.