This task is to be solved if we succeed in bringing about a political attitude which would make it possible for the economic ties of the Netherlands to the Reich to appear to be the emanation of the will of the Dutch people.
It will not be possible in every individual case to combine fulfillment of the given commission with the solution of the assigned task, for the interest of the occupation power demands the extensive suppression of all possible public activities, while in order to create and lead a formation of a political will it would be necessary to grant such freedoms as would for the Dutch, make the final result their own decision.
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Situation.
The situation at the time the decree of the Fuehrer went into effect (29 May 1940) is characterized by the position of the Commander in Chief of the Dutch Army and Navy (General Winkelmann). He exercised all power in the administration of the country, under the powers he had received in consideration of the state of siege and beyond that from the government and the queen who had fled, and he was considered by the people as a sort of viceroy. He issued orders, the Dutch Secretaries General (offices corresponding to our State Secretaries) executed their orders in the name of Winkelmann within administrative machinery unchanged in personnel and functioning perfectly.
Wherever Winkelmann appeared in public he received ovations.
The Dutch Army was in only slightly reduced mobilization strength under the command of their own officers (Winkelmann's Staff) in the barracks and camps. The occupation force was not seen often.
The behavior of the Dutch population—glad that the war is over, pleasantly surprised by the conduct of the German troops, though at first the circles hostile to the Germans kept themselves reserved—concealed the real attitude of the Dutch toward the Germans. The Dutch population for many years, especially since 1933, were stirred up by the emigrants, who were tolerated here as in no other country, against the Reich and National Socialism. The ability of forming their own political opinion is limited for the majority. Politics and administration are in the hands of a [page 3] small group (ruling families), whose ideas and attitude are liberal and influenced materially and ideologically by the west.
The real wages of the employed population are generally higher than in the Reich. About 500,000 unemployed from about 2,000,000 people capable of working in non-independent industry, trade, or business are being carried along with unemployment compensation up to 70% of simple wages, thanks to the riches of the Dutch Indies possessions, just as agriculture, struggling with sales and price difficulties, is supported almost entirely by state subsidies.
The Dutch people are caught in political stagnation as well as in economic immobility. In spite of a good external impression (racial appearance, cleanliness of the buildings and gardens, etc.) one can observe extensive biological and even moral damage, such as unexpected uncleanliness among the unemployed and the country population in the Calvinistic districts, poor physical constitution, exclusive interest in material matters, and so on. The people are widely split confessionally and within the confessional groups bound and influenced by all kinds of activities (from political organizations to chess clubs).