Immediate steps were taken to implement these measures in Belgium. The annual report of the Commissar at the National Bank from May 1940-41 states:

“According to the directions of the Reichsmarshal Goering as early as September 1940 the first measures for a closer formation of capital ties between the Belgian and German economy were taken. Two different procedures were concerned here:

“1. Direct negotiations between German industrialists and Belgian industrialists, for the purpose of obtaining constructive participations in important Belgian enterprises which offer the basis for collaboration between the two economies even after the war. Furthermore, it is desired to transfer to German hands important Belgian participations in foreign enterprises whose administration is located in Belgium, particularly so far as enterprises are concerned which are located in the Balkans and in which a general German interest exists.

“2. Ties which result from purchases of stock by German parties on the Belgian stock markets. For this purpose the Reich Economic Minister has given general permission to 32 German banks to obtain participation rights, particularly stocks, in a limited quantity in Belgium. Till now use has been made of this permission in the amount of about 25 million RM, to which can be added an additional 10 million RM for the procurement of Belgian participations in Rumania, Bulgaria, and the former Poland.” (ECR-24)

In his report for November 1940 the Military Commander for Belgium stated:

“A certain readiness exists on the part of the Belgians to give up investments in stocks in such countries which, at the present time, are being ruled militarily or economically by Germany. Among the important business deals of this kind which have been concluded should be mentioned the taking over by the Kreditanstalt, Wien (Credit Institute, Vienna) of an essential interest in the Allgemeiner Jugoslawischer Bankverein (General Yugoslav Bank Association) from the Societé Generale (capital approximately 1 million RM) and the taking over by the Deutsche Bank of the overwhelming majority [translator’s note: of shares] of the Banca Commerciala Romana from the Societé Generale (capital approximately 2 million RM). The Deutsche Bank also succeeded in acquiring shares of the Kreditanstalt, Wien, of approximately 800,000 RM nominally from the Societé Generale and from one of its subsidiaries. Negotiations between the Deutsche Bank and the Societé Generale on the transfer of approximately 25% of the capital of the Banque Generale du Luxembourg are about to be concluded. Through this deal the Deutsche Bank together with the other German groups obtains the absolute majority of the Luxembourger Bank (approximately 70% of the shares). The Deutsche Bank gets the right to acquire another 25% of the shares which for the time being, remained with the Societé Generale.” (EC-34)

While the Military Commander of Belgium may have given some assurance that the owners would not be compelled to sell (ECH-22), in at least one instance, purchase could be effected only by military order (EC-335). In this instance the procurement for the Main Branch of Trustees East of shares of the Belgian “Trust Metallurgique” in electricity and road enterprises of East Silesia and the General Government, as well as purchase of shares in the iron works Ostrovica for the Reichswerk Hermann Goering had “to be done, at the request of the Reich Ministry for Economics, forcibly, as an agreement on a financial basis could not be obtained.” (EC-335)

The German acquisition of Belgian stock participations was financed through the Belgium-German clearing. The Belgian clearing balances of 20 March 1940 included an item of 296 millions bfrs., which “is explained by out-payment of large clearing transfers to purchase Belgian capital participations in Balkan enterprises” (ECR-14). Increasing transfers resulting from the German capital penetration program precipitated a controversy with the Emission Bank, which was resolved by the Commissar’s issuance of an order requiring the bank to make payment (ECR-24). As a sequel, “capital” payments were separated from those for “goods and services” and financed by a separate “capital” clearing agreement covering purchases of securities and other “capital” transactions (ECR-24). The Belgian clearing “credit” under the capital clearing, as of 31 July 1943, amounted to 1,071,000,000 bfrs (ECR-173). As shown below, (see infra, D, 2) the Belgian credit under the capital clearing traffic represents a forced loan, exacted for a purpose not even remotely related to the needs of the occupation army.

France and Holland

The limited evidence, in the presently available German documents indicates that similar methods were employed in French and Dutch participations. The procedure followed in the Netherlands is indicated below in the discussion of the removal of restrictions on the free transfer of Reichsmarks in that country. (See infra, D, 5.) In France, participations of a value of 121,000,000 RM were purchased for German interests, paid for in part out of occupation funds and in part through the clearing. (1991-PS)