The answer to this may be given that the greater part of the purchases made have been made in France and have been financed by occupation costs. It is thus that for a total of 1,107,792,891 Reichmarks of purchases, 929,100,000 Reichsmarks have been put to the costs of French occupation and thus constitute in no way a charge for the Reich budget." market, he concludes:
"To summarize, one must recognize that the situation
THE PRESIDENT: What page are you now on, of this document?
M. GERTHOFER: This is page 17 of the report and 20 of the text.
THE PRESIDENT: Yes, I have it now, go on.
M. GERTHOFER: "In conclusion (Veltjens says) it must be recognized that the situation of the supplying of food to the Reich will no longer make it possible to give up purchases on the black market, even after this last has been skimmed, as long as their exists hidden stocks of merchandise useful for the conduct of war. In regard to this superior interest, every other consideration must disappear." question of the technical organization of the services. Here are several relevant passages.
"The general direction of surveillance, especially organized to this intent, that is to say:
"(a) The surveillance service in France with headquarters in Paris.
"(b) Surveillance service in Belgium and Northern France with its seat in Brussels.
"(c) Surveillance service in Belgium and Northern France and an annex service in Lille, with its seat in Lille.
"(d) Surveillance service in Holland, with its seat in the Hague.
"(e) Surveillance service in Serbia, having its seat in Belgrade. by a limited number of purchasing organizations, which are authorized:
for France 11, for Belgium 6, for Holland 6, for Serbia 3.
"It is thus (he writes) that all the purchases are subject to the central surveillance of the delegate for the Special Missions."
Further on Veltjens adds:
"The figure of the purchases and the transport of merchandise are affected by the R.O.G.E.S. of the Reich. The merchandise is distributed thereupon in the Reich by the R.O.G.E.S. in conformity with the instructions of the Central Plan or by departments designated by the Central Plan and each time in order of the urgency of the needs of the different qualified services." of the operations affected up to the date of November 30, 1942, that is to say in less than five months, since his organization had not begun its activity earlier than July 1, 1942. Here are the figures that Veltjens gives.
"The volume of purchases made: (a) since the inauguration of the purchases directed by the German commander or the Reich commissar, and of the directed distribution of merchandise in the Reich, there has been purchased a total of 1,107,702,818 Reichsmarks. In France, total amount of 929,100,100, Reichsmarks; in Belgium 103,881,929, Reichsmarks; in Holland 73,685,162,64, Reichsmarks; and in Serbia 1,125,727, Reichsmarks."
Veltjens adds: "The regulation has worked out in France - has been carried out on the basis of the occupation costs and in the other countries by means of the clearing device." over the period of these five months. I shall simply give a summary to the Tribunal. First of all metals - 66,202 tons for a value of 273,078,287 Reichsmarks; second, textiles, for a total value of 439,040,000, Reichsmarks; third leather, skins and hides to a total value of 120,754,000, Reichsmarks. Veltjens adds:
"Besides those purchases there have been the following purchases: oils and industrial grease, oils and fats for consumers, wool, household articles, wines and spirits, engineering equipment, sanitary articles, sacks."
five months. Then he raises the question, or rather he states the principle that the black market must be utilized solely to the benefit of Germany and be severely repressed when it is utilized by the populations of the occupied countries and on this subject he writes, and I quote:
"1. Develop the control of prices. Inasmuch as reinforcement of a control personnel, of a German control personnel is not possible, or is possible only to a limited extent, it will be necessary to obtain from the local administration authorities a cheater activity, greater zeal in this realm.
"2. Apply severe penalties, according to the German methods, for violations of regulations. This is indeed, the only means of bringing about a remedy to the lack of discipline of the populations, a lack of discipline which goes back to the individualistic and liberal ideas and ways of these populations. A control of the sentences that have been passed by the local tribunals seems to be indicated.
"Third: The promise of a reward in case of denunciation of the violations. The figures of these recompenses should be sufficiently high in relation with the value of the objects which are involved in the denunciation and which have led to a seizure of these goods.
"Fourth: The hiring of spies and of agents provacateurs.
"Fifth: Arrest or stoppage of all enterprises that are not working for the war industry.
"Sixth: Stoppage or fusion of enterprises whose capacity or production is only being partly exploited.
"Seventh: Increased control of the productivity of plants.
"Eighth: Close examination of the quantity of raw materials to be distributed at the moment of transfer of the market.
"Ninth: Policy of prices which are in accord with the enterprises of sufficient benefits and of a nature to guarantee an adequate price level." to the German purchases on the black market, Veltjens writes:
"In the recent period, the French and Belgian economic governmental services, among others the chief of the French Government himself, have complained about purchases methodically carried out by the Germans. In response to protests of this kind, it should be observed without prejudice to other arguments that on the part of the Germans, too, there is naturally the greatest interest in the disappearance of the black market, but that the chief responsibility for its persistence falls upon the governmental authorities themselves by reason of the incapacity which they demonstrate in controlling prices and the weakness which they show in judiciary punishment of violations, whereby they bring an encouragement to the spirit of rebellion, and lack of discipline of the population." by Veltjens by recalling to it that the Germans were the principal purchases on the black market, and that their agents benefitted from it by a total immunity. his report:
"The delegate to the special missions has moreover as his takes to proceed to the recuperation of machines existing in the inactive enterprises. Machines which thus are not being utilized, in particular tool machines, of which Germany has an urgent need for its war production, are extremely numerous.
"After an agreement among the delegates of special missions, the military command and the governmental power for the production of machines, there has been created in France, at the armament inspection service, a service for the distribution of machines (machinenausgleichstelle). The creation of a distribution service of machines which is comparable to this is provided for Belgium and Holland. One must expect to meet a serious resistance on this score as well on the part of the owners of factories as on the part of the local governmental authorities, The occupation authorities will have to utilize every means to break this resistance."
In conclusion, Veltjens alludes in his report to the R.O.G.E.S, Society, which was a specialized organization in the transport to Germany of the booty captured in occupied countries, and, more particularly, of produce obtained by operations of the black market. One of the directors of this service, one Ramis was interrogated on the 1st of November, 1945, and declared in substance that the R.O.G.E.S. Society had begun its activity in February 1941, succeeding another organization. On the whole he confirms the facts that are reported in Verljen's report, I shall therefore simply submit his interrogatories before the Tribunal under No. 113.
THE PRESIDENT: Are you aksing us to take notice of this interrogation?
M. GERTHOFER: The interrogation was made in Nurnberg.
THE PRESIDENT: Yes; but unless you read all the parts of it that you wish now in court, it will not be in evidence.
M. GERTHOFER: I think that it is not necessary, because Mr. Ramis only repeats the indications given by Mr. Veltjens. It seems to me superfluous. German documents which cannot be contested. I allow myself to remind you that these documents establish that in five months, in three countries, these operations amount to the sum of 1, 107, 792, 818 Reichsmark.
We shall come back to certain details in examining the special mission of certain countries, but it is necessary to indicate the reasons why the Defendant Goering in the end decided that the black market operations should be suspended. the occupied countries, Goering decided that purchases on the black market would be suspended. of the populations of the occupied countries, since he had decided that purchases on the black market were to continue even if risks of inflation should occur. The real reason is th following: taxed by their services, the secret purchasing organizations at the same time accepted prives that were much higher. The merchandise was thus inevitably attracted by the black market, to the detirment of the official markets, and the secret products in the end absorbed the normal products. Finally, it must be added that the corruption brough on in certain groups of the Wehrmacht by such activities gave considerable anxiety to the German rulers. The black market was, therefore, officially suppressed on 15 March 1943, but certain purchasing offices continued their clandestine activity up to the moment of liberation, but in proportions that were much inferior to those which preceded the date of 15 March 1943.
I quote a passage of this report, which gives an idea of the disorder created by the German activity, and which I referred to a moment ago under No. 107, which indicates why the authorities of the Reich officially suspended purchases on the black market.
This is on page 21 of the French text. This was the period when champagne, cognac, and benedictine were handled in lots of ten to fifty thousand bottles, and goose liver past in tons. siderable numbers of officers of the Wehrmacht. Tempted by the lift of luxury which went on around them, this corruption extended so pervasively to the German military groups that from a simple canteen soldier to a higher officer each one committed the worst violations and demanded commissions on every sale. In a clandestine sale of wool, the service was found in one case to be carried out by a general of the Luftwaffe. This extended to all levels of the army.
THE PRESIDENT: What page is this? You say it is in Document 107? Which document are you reading from?
M. GERTHOFER: Page 22 of the French document. Document 107. I began on page 21 -- the second paragraph from the bottom on page 21. Next to the last paragraph on page 21 was the beginning of the quotation. were unknown and inaccessible, black market activities, handled without any documents and on a cash basis, without any other written evidence than that of the German offices, cannot be easily traced and evaluated today. offices of Paris continued thus during about twenty months; but, after having reached its culminating point towards the end of 1942, this activity was suddenly to come to an end in March 1943, a victim of its own excesses. In effect, during the whole occupation, prices and products remained rigorously limited by the French services, and even more by the German economic services, which systematically opposed any increase in prices. Anxious above all to maintain a broad, purchasing power for the French capital which they had at their disposal, but, whereas, the contractual furnishing served to the enemy were paid at prices that were barely above cost, the secret purchasing organizations accepted at the same time prices several times higher for the same products.
In these products the escape of merchandise towards the German black market became increasingly large, while at the same time hidden manufacture multiplied toward the same end. The disorder became quickly such that in certain branches of industry contractual deliveries could not be guaranteed except with great delays, in spite of the threatening protests of the German services. trial Production had to inform the German authorities that national production soon would no longer be able to meet its obligations. This irremediable situation, joined to the necessity of putting an end to the unbelievable corruption provoked by the black market in the Wehrmacht circles, brought the Reich Government, if not to suppress the German black market in its entirety, at least to consider closing the Parisian purchasing offices. This measure was carried into effect on the 13th of March, 1943, as a result of the agreement between Bichelonne and General Michel. Meanwhile, and this is very significant, the German economic services did not fail to exact in compensation a notable increase in contingents through the agreements. Thus, for the Kehrl Plan alone, this increase amounted to 6,000 tons of textile produce. Only some offices were able until the liberation to maintain a certain amount of activity by trying to deal with the Commission for Purchases with the R.O.G.E.S., or with some military services purchasing cantonment furnishings or with the offices of the Luftwaffe or the Kriegsmarine.
THE PRESIDENT: Perhaps this would be a good time to break off for ten minutes.
(A recess was taken from 1120 to 1130 hours).
particular country, concerning the black market operations, so as to be able to give a measure of their extent. But I think that right now it is established as well by the Russian report as well as by the passages from the French Economic Control Report, of which I had the honor to read to the Tribunal, that the black market is organized by the leaders of the Reich, and notably by the Defendant Goering. ing, I shall ask the Tribunal's permission to give a few explanations from the juridical point of view. It is this. It is treated in chapter five of the first part. The juridical point of view: invaded by Germany is prohibited by the international Hague Convention signed by Germany and deliberately violated by her; even though her leaders never failed to invoke this Convention every time they tried to benefit by this Convention.
Section three of the Hague Convention called "The Military Authority over the Territory of the Enemy Government," which relates to the economic questions. These clauses are very clear and do not have to be discussed. If the Tribunal will allow me to recall them in reading-
Section three of the convention of the Hague; No. 114 of the book of documents; and which is called, "The Military Authority over the Territory of the Enemy Government"; Article 42.
"The territory is considered as being occupied when it is placed under the authority of the hostile army. This occupation extends only to territory where such authority has been established and can be exercised." Article 43 "The authority of the legitimate power having in fact passed into the hands of the occupant, the latter
THE PRESIDENT: I think we can take judicial notice of these articles from the Convention.
M. GERTHOFER: I shall therefore not read this article, as they are known, and shall simply limit myself to certain juridical remarks. These texts of the Hague Convention show in a very illuminous way that the Germans could not comprehend in occupied territories the facts which were necessary to the 'maintenance of troops indispensable in occupied territories.
All items which were levied beyond these limits will leave it in violation of the text which you knew, and subsequently plundering. put aside, because Germany had given herself the aim of concluding the war against Britain and then against the U.S.S.R. and the United States of America. Defense may, moreover, pretend that because of this Germany was in a very necessitous state which had to checkmate the prescriptions of the Hague, and will try to incorporate Article 23-G, which allows to destroy or to seize even private property. relating to the conduct of the occupant in enemy territory. These last prescriptions are contained, I repeat, in Articles 42 to 56. They were relevant to the attitude which must be covered in the course of the combat. It is seen in the expression, "No seizure of enemy property except in cases where these seizures are absolutely ordered by military necessity."
B. And no discussion as to translation can be referred to because actually the French text is binding, the word "seizing." I repeat, not to appropriate a thing, but to put it under the protection of justice with a view to leaving it mused in the state where she formerly was and to keep it for her true property or for him who can show rights to it. Such a seizure is permitted by the military authority so long as the action lasts, in order to keep the property from being used against the troops. But it does not authorize him in any case to appropriate it for himself. of international law formerly provided for by Article 68 of the Charter of the United Nations of the 8th of August 1945. enrich Germany and permitted her to continue the war against Britain, the Soviet Union, and the United States. Thus they ruined the invaded countries, the populations of which were subjected to a regime of slow famine; actually, physically weakened, and who, without the victory of the Allies, would be on the road to progressive sterilization. This inhuman conduct constitutes there fore war crimes which come within the competency of this Military Tribunal, so far as the leaders of the Reich are concerned.
Tribunal will permit me to advance an argument which will certainly be presented by the defense, notably so far as economic plundering is concerned. They will pretend that juridical jurisdiction did not exist; that the international penal law had not yet been formulated in any text at the time when the defendants perpetrated the acts which they were actually charged with, and that therefore they could not be condemned to any sentence whatsoever by virtue of the principle of non-retroactivity of penal laws.
Why, gentlemen, is this principle adopted by modern legislation? It is indisputably so that any person whatsoever who is conscious of never having violated any prescribed law could not be condemned because of acts which were committed in such conditions. country had adopted a penalty against such an offense. In this case the facts are quite different. The defendants can not pretend that they were not conscious of having violated legislation of any kind.
First of all, they violated international conventions: The Hague Convention of 1907, the Briand-Kellog Pact of the 27th of August 1938; and they also violated all the penal laws of the invaded countries. How shall, in this legislation, the economic plundering be qualified-theft, swindling, blackmail, and even, I mil add, murder--to attain their aims. The Germans have premeditated and permitted numerous murders which enabled them to intimidate the proclamations to plunder them. According to the point of view of domestic law, these acts certainly fall under the application of Article 295 and the following ones of the French Penal Law, and notably of Article 303, which stipulates the guilt of murder on all offenders, whatever denomin ation, who, to execute crimes, resorted to torture or perpetrated barbarous acts. notably Articles 233 and following of the German Penal Law. Counsel for the defense will certainly stress that certain of the leaders of the their country.
They have been or will be condemned. But the crimes pressure.
The concluding contracts show that these contracts are solely in favor of Germany; as a matter of fact, never drawing any I have the honor of showing it in our particular case.
My were not certain of rapidly dominating Western Europe.
From the country.
After their success of May, 1940, their attitude changed.
less like the other occupied countries. Nevertheless, they seek to of payment.
They used, to this effect, two methods to a great extent:
the leaving of a veritable tribute of war, protecting the of the so-called clearing agreement.
These two methods should be 1. Expenses of occupation.
Article 49 of the Hague Convention of the country.
The occupant can therefore levy a contribution for the strict necessary sum; on the other hand, the needs of the paid so far as possible in cash; otherwise they will have to be maintenance of the troops.
But under two conditions, apart from 1. That the levies and the service should be proportionate 2. Pay the levies as soon as possible.
This does not mean a Nevertheless, instead of buying Danish crowns to permit their troops to spend money in Denmark, as early as 9 May 1940 they imposed the circulation of notes of the Reichskreditkasse -- which is shown in Number 26 of the Vobif, which I have already submitted under number 92.
Upon the protestations of the National Danish Bank against the issuing of foreign paper money, the Germans withdrew these notes from circulation, but demanded the opening of an account at the National Bank, promising to draw upon it for sums which were indispensible for the maintenance of the Army in Denmark and for these sums only. in levying, on their account, in spite of the Danish protestations, sums infinitely, superior to the needs of the army of occupation. levied, per month, in 1940, 43 million crowns; 37 million crowns in 1941; 39 million crowns in 1942; 83 million crowns in 1943; 157 million crowns in 1944; 187 million crowns in 1945. The total of these levies amounts, according to the Danish Government, to 4,830,000,000 crowns. ment concerning this, a report to which I shall refer in the course of this statement. German document discovered by the United States Army, EC-86, page 11, which I submit to the Tribunal under the number 116. This is a secret report of the 10th of October, 1944, written by the labor staff for foreign countries, and which concerns the financial leaders in occupied territories. territory, and therefore does not pay occupation expenses. The means of payment necessary to the German troops are put at the disposal of the high administration of the Reichskreditkasse by the Central Danish Bank, by the channels of ordinary credit. 1944, for occupation expenses, amount to: 1940-1941, 531 million crowns;
1941-1942, 437 million crowns; 1942-1943, 612 million crowns, ; 1943-1944, 1,381,000,000 crowns.
This represents, up to the 31st of March, 1944, levies amounting to 2,971,000,000 crowns. This corresponds to the information given by the Danish Government for approximately the same period, 2,723,000,000 crowns. as compared to the rate of exchange for the crown, had been fixed by the occupying powers from 47.7 to 53.1 marks per hundred crowns. was not an occupied territory, they levied in this country the total sum of 4, 830,000,000 crowns, an enormous sum, seeing the number of inhabitants and the resources of the country. In reality, this was nothing other than a war tribute which the Germans imposed under the pretext of furnishing means of payment to her army, which was stationed in Denmark., The maintenance of the army necessary to the occupying of Denmark did not necessitate such important expenses, and it is evident that the Germans used, as in other countries, the majority of the funds extorted in this manner from Denmark to finance their war effort.
Chapter 2, Clearing: as a pretext to declare a general moratorium on all her previous engagements. Nevertheless, to be able to continue, to a certain extent, her commercial operations with foreign countries, she concluded, with a majority of the other nations, agreements permitting the payment of her commercial debts, and even of certain financial debts, on the basis of a system of compensation called "clearing." and for its duration, the Danish authorities did everything they could, but in vain, to counteract theGerman activity in this domain. Under the pressure of occupying forces Denmark could not prevent her credit for the clearing balance from constantly increasing, owing to the German purchases which weremade without the furnishing of any compensating counterpart.
According to the Danish Government, the credit balance of the account progressed in the following way:
31 December, 1940, 388,800,000 crowns; 31 December 1941, 784,400,000 crowns; 31 December 1942, 1,062,200,000 crowns; 31 December 1943 1,815,800,000 crowns; 31 December 1944 2,694, 000,000 crowns; 31 April, 1945, 2,900,000,000 crowns. I submitted a few minutes ago under number 116, and according to which, on the 31st of March, 1944, the Germans had procured for themselves means of payment, through clearing, amounting to a total sum of 2,243,000,000 crowns. made of the sum of 7,730,000,000 crowns which they procured fraudulently and to the detriment of Denmark, with the help of the indemnity of occupation and of clearing.
mate the extent of the operations carried out by the Germans on the black market. Nevertheless, the writer of the report which I have presented previously, of the 10th of October, 1944, indicates: "We must put aside all estimation of the sums which were used on the black market. Nevertheless, it must be admitted that members of the Wehrmacht used to buy, at top prices, butter and other products in Denmark. But it is impossible to fix these sums even approximately, for the black market seems to be less vast and less well coordinated than in the other occupied territories of the West, and is closer to the structure of the German black market and of the rather confused prices. Nevertheless, the prices of the Danish black market can generally be considered as much lower than the German prices. It is, therefore, not possible to speak of an average price, of an average high price, as in France, Belgium and Holland," of the Wehrmacht, used to operate on the black market in Denmark, and that the paying of expenses was done with funds extorted from Denmark. Concerning the acquisitions, which seemed regular in appearance, we lack the necessary information to be able to give prcise indications. Nevertheless, according to a secret report of the 15th of October 1944, addressed by the German office of the Economic Staff of Germany to his superiors of Frankfurt an der Oder - a document discovered by the United States Army, and which I submit under the number 117 - the following goods were levied by his department: cubic meters per month.
September 1944, 5,785 cubic meters of cut timbers; 1,110 meters of uncut timber; 1,050 square meters of plywood; 119 tons of paint for ships;
and special wood for the navy. just one German section happened to make. Denmark had to furnish important quantities of cement. Germans furnished her, in exchange, with the coal necessary for this fabrication. the Germans bought, in Denmark, for over 8,312,278 crowns, foodstuffs. These numbers are below the truth. According to the last information we have received from the Danish Government, the levies of agricultural things alone amounted, on the average, to 70 million crowns per month; which represents, for 60 months of occupation, levies of a value of 4,700,000,000 crowns, levies which were not followed by payment. crowns which were deposited in their accounts under the pretext of the maintenance of the army of occupation, and also by the method of clearing, the Germans apprehended an important quantity of things without having paid for them in any regular manner. It was in this way that they appropriated things of the Danish Army and Navy; Lorries, horses, means of transportation, furniture, clothes, and so on. To this day this has been estimated at about 850 million crowns, but that is probably below the truth. Many requisitions and secret, or even apparent purchases, have not yet been exactly estimated.
THE PRESIDENT: (interposing): Where do these figures come from?
M. GERTHOFER: These figures come from the report of the Danish Government, number 105.
THE PRESIDENT: Did you say document 105?
M. GERTHOFER: One hundred and fifteen. of the Danish Government, an estimation which is rather approximative, and for the time being only, of the damages sustained by Denmark and of the German plundering, which is estimated at 11,600,000,000 crowns.
more particulars concerning Denmark. I will, therefore, if the Tribunal will permit me, begin with particulars in the case about Norway.
THE PRESIDENT: Are you submitting a document book with this?
(The document books were submitted.)
M. GERTHOFER: The Economic Plundering of Norway: The German troops had only arrived in Norway when Hitler declared, on the 18th of April, 1941, that they should proceed to the economic exploitation of this country which, for this reason, must be considered as an enemy state.
THE PRESIDENT (Interposing): One moment; is that date right? Is it the 18th of April, 1941?
M. GERTHOFER: I am sorry, it is 1940. rather brief, but it is, nevertheless, sufficient to enable us to estimate the German activity in this country during the duration of the occupation.
Norway was subjected to a regime of most severe rationing. As soon as they entered this country, the Germans tried-and this was contrary to the most elementary principles of international law--to draw from Norway the maximum of resources possible. which I submit under the number 118-a document which is made up by the Journal De Marche of Economic and Armament Service in Norway, written in May, 1940-we have excerpts of the directives relative to the administration and to the economy in the occupied territories. Here are some excerpts from this document:
"Directive of Armament Economy:
"The Norway industry, to the measure which she does not directly supply the population, has, in her essential branches, a particular importance for the German war industry. That is why her production must be put, as soon as possible, at the disposal of the German armament industry, if this has not yet already been done.