The Reich Commissars are responsible for controlling the Special Courts set up and attached to the Reich Commissars. These are also Senior Officials of the Prosecuting Authorities attached to these Courts. The SS Executive and Police Officers and Senior SS Executive and Police Officers are in charge of the Courts Martial.
It is desirable (in the Eastern regions first of all) that the country's own jurisdiction be reestablished, formed of reliable persons where they can be found. This is all the more necessary in that the German Courts, on account of the scarcity of personnel, can pass judgment only on offences which are punishable under German Laws and the punishment of which is of urgent German interest. The punishment of other criminals, however, can only remain in abeyance for a short period. The concerns of the civil administration of justice can remain in the background for the time being and some honorary Courts of Justice may suffice at first. Wherever the country's own jurisdiction is still intact, which may be the case in the East, it is to be instructed to continue its work immediately after unreliable elements have been removed.
Those arrested by the Soviet Legal Authorities on account of sentence which has been passed may only be released after each individual case has been examined.
This examination is to be carried out with the greatest speed in regard to convicted nationalists and other political prisoners. In cases of doubt the opinion of the Political Department attached to the Reich Commissar or the General Commissar or the Executive SS and Police Officer should be obtained.
The District Commissar is responsible for the supervision of all prisons, insofar as the Reich Commissar does not decree otherwise.
As it is impossible at the moment to produce a comprehensive new Penal Code, the Soviet Penal Law (in Estonia, Latvia and Lithuania the pre-Soviet Laws) are for the time being still applicable to the country's own courts, nevertheless without those regulations which apply to political offences. This also applies with regard to the Civil Law, the right of voluntary jurisdiction and to the right of procedure.
4. Finance.
It is intended to draw up a unified General Budget for the complete Administration of the Eastern Territories, in other words from the Reich Minister downwards to the District Commissar. Whether there is any point in separating this plan into separate budgets for the various Reich Commissariats, or whether credit accounts will simply be established for the subordinate administrative bodies, can only be decided after the whole Administration has been set up. The basic principle of this General Budget must be that the cost of the whole administration shall be borne by the country itself. Until such a budget has been drawn up and further regulations have been issued regarding the use of the income derived from taxes and from balances from the State undertakings, the Reich will use credits to cover public expenditure. These credits which will be allotted to the Reich Commissars and from there on to the subordinate offices by the Reich Commissar for the Occupied Eastern Territories are to be administered in accordance with the directives as per printed Appendix.
Until further notice taxes are to continue to be paid by the inhabitants in accordance with the existing Soviet taxation system (in Estonia, Latvia and Lithuania in accordance with the taxation system of the pre-Soviet era) if nothing is decided to contrary. The taxation officials in question who are still capable of working are to take up their duties immediately and/or continue them. The same applies to the utilization of the balances from the State undertakings.
The country's own authorities are forbidden to dispose of the amounts collected without the permission of the German authorities (for the time being Reich Commissars).