The principle of the clearing system is as follows:
The importer makes a deposit of the purchase price in his own currency at the national clearing agency of his country, which places the same amount to the credit of the clearing agency of the exporting country. The latter institution then pays the exporter in his own currency. Thus if trade between two countries is unequal the clearing agency of one acquires a claim against the agency of the other which, however, is satisfied only when a shift in the balance of trade gives rise to an offsetting claim.
In the order establishing the German-Belgium clearing, the Belgium clearing agency was the National Bank of Belgium (3608-PS). The administration of the clearing was shortly thereafter transferred to Emission Bank, an organization originally incorporated by Belgian interests pursuant to order of the Military Commander of 27 June 1940 (ECR-24). The change was one in name only, however, since at this time the management of the two banks was substantially identical and the Emission Bank obtained its currency by loan from the National Bank. The Emission Bank was, by its charter terms, subject to orders of the Commissar at the National Bank; the Commissar obtained the same powers over the National Bank by German order of 16 December 1940. (ECR-24)
The Belgian total “credit” under the clearing, as of 31 July 1944, amounted to 60,837,000,000 bfrs = 4,867,000,000 RM, of which 54,993,000,000 bfrs = 4,399,000,000 RM arose from the Belgian-German clearing for goods and services. (ECR-173)
The continued increase in the Belgian “credit” was due mainly to “the increasing Belgian export to Germany for which there are only small imports from Germany on the other side of the account.” (ECR-149)
The entire Belgian credit under the clearing constitutes a forced loan, largely for nonoccupation purposes:
(a) The Belgian-German clearing was established by circular of the Reichs Minister of Economics, 4 July 1940 (ECH-6), which was published to the Belgians by proclamation of the Military Commander of 10 July 1940 (EC-604; 3608-PS).
(b) “Since it was to be foreseen that as the result of the increased deliveries from Belgium to the Reich, which were not matched by opposite accounts, particularly in the early period, the clearing status would develop to the favor of the Emission Bank” (ECR-24), an agreement was signed by the Emission Bank and the German Reichsbank on 16/17 August 1940 under which each undertook to pay out clearing transfers immediately (ECR-24; ECH-5).
(c) This agreement did not prescribe what must be financed through the clearing; it merely provided for immediate payment of claim arising thereunder without waiting until the account should be balanced by equalizing of imports and exports. As the Military Commander stated, the German-Belgian clearing was “not regulated by an agreement, but has been regulated unilaterally by my proclamation of 10 July 1940” (EC-604). The Military Commander made clear the absolute power asserted by the German authorities over the Belgian Note Banks (as the Germans described the Emission and National Banks). He stated:
“* * * The claim made to the Commissar that the Emission Bank is entitled to ask in every case for detailed explanation of compensation payments coming from Germany is incorrect. The clearing activities between Germany and Belgium are not regulated by an agreement but have been regulated unilaterally by my proclamation on July 10, 1940 and are not subject to any Belgian control. Inter-alia the transfer of all payments which have been specially authorized by the Reich Ministry of Economy has been expressly permitted * * *.” (EC-604)