“III. The Re-armament of the Navy under the Direction of the Reich Government in a Disguised Way.” (C-17)
The policy development of the navy is also reflected from the financial side. The planned organization of the navy budget for armament measures was based on a co-ordination of military developments and political objectives. Military-political development was accelerated after the withdrawal from the League of Nations. (C-17)
A captured document, entitled “Chef der Marineleitung, Berlin, 12 May 1934,” and marked “Secret Commando Matter,” discusses the “Armament Plan (A.P.) for the 3rd Armament Phase.” (C-153). This document, which bears the facsimile signature of Raeder at the end, speaks of war tasks, war and operational plans, armament target, etc., and shows that it was distributed to many of the High Command of the Navy. Dated 12 May 1934, it shows that a primary objective was readiness for a war without any alert period. The following are pertinent extracts:
* * * “The planned organization of armament measures is necessary for the realization of the target; this again requires a coordinated and planned expenditure in peace time. This organization of financial measures over a number of years according to the military viewpoint is found in the armament program and provides
“a. for the military leaders a sound basis for their operational considerations and
“b. for the political leaders a clear picture of what may be achieved with the military means available at a given time.”
* * * * * *
“All theoretical and practical A-preparations are to be drawn up with a primary view to readiness for a war without any alert period.” (C-153)
The conspiratorial nature of these Nazi plans and preparations long before the outbreak of hostilities is illustrated in many other ways. Thus, in 1934, Hitler instructed Raeder to keep secret the U-Boat construction program; also the actual displacement and speed of certain ships. Work on U-Boats had been going on, as already indicated, in Holland and Spain. The Nazi theory was ingenious in that respect. The Versailles Treaty forbade re-arming by the Germans in Germany, but the Nazis said it did not forbid them to rearm in Holland, Spain, and Finland.
Secrecy was equally important then because of the pending naval negotiations with England. The subject was discussed in a conversation between Raeder and Adolf Hitler in June 1934. The record of that conversation (C-189) is not signed by Raeder, but in an interrogation on 8 November 1945, Raeder admitted that (C-189) was a record of this conversation, and that it was in his handwriting, though he did not sign his name at the end. The report is headed, “Conversation with the Fuehrer in June 1934 on the occasion of the resignation of the Commanding Officer of the Karlsruhe.” It reads: