December 1942
SECRET
[Rubber Stamp]

Political and Economic Problems of the Military and Civil Administration of the Occupied Eastern Territories.

Introduction: The author of this report as representative of the Reich Ministry for the Occupied Eastern Territories with the Headquarters of Army Group North had the possibility to become acquainted with all questions of administration and economy in the Eastern area. An information trip also brought him to the

Army Area B (Donetz)
Army Area Don
Army Area Crimea
Army Area A (Caucasus)
into the General Commissariat Dniepropstrovsk
into several District Commissariats.

Conferences took place with all commanders of these army areas, the chiefs of staff, the chiefs of the departments VII, the chiefs and experts of the economic inspectorates and numerous economic teams and with field and local commanders.

In the field of civil administration, conversations were held with the competent experts as well.

Result: Necessity for our Present Eastern Policy.

Reasons: 1. The military results of the fighting of this year in the Eastern area is the fact that the fighting power of the Bolshevist army has not been broken yet. One must count on a prolonged duration of the war.

2. The size of the occupied territory results in a noticeable lack of security troops as well as fighting troops. The necessity of the military commitment of the Slav becomes apparent more and more, whether it be for the combatting of partisans and in the police service, or whether it is for use at the front even as will be necessitated by future developments.

3. The war economic importance of the Occupied Eastern Territories increases with the duration of the war. The last inhabitant of the country, able to work, must be utilized in agriculture or in war economic factories. His existence must be assured. Losses of a large number mean damage for the front which cannot be repaired.