The two closed settlement groups of the Karatschaier are led by a committee of the eldest, each consisting of 8 of the noblest persons of the tribe, who are directly subordinated to the local commander in an advisory capacity.
The cooperative [Kolchos] land is divided up, and given to the farmers as their property. The old farmland from the Bolshevist period is tax-free, taxes are levied for the new.
In the experimental area of the Cuban-Cossacks, the role of the local commander is changed. Six regions are concentrated under one field commandant. The District Ataman is subordinated to the field commandant in an advisory capacity.
Furthermore, a special economic liaison staff has been created which is directly subordinated to the economic inspectorate Caucasus. The county Agricultural Supervisor [Kreislandwirt] must turn to him. The regional agronomist is also subordinate directly to the liaison staff.
The attempts to carry out a certain amount of self administration deserve the highest attention in the framework of the reconstruction policy in the East. We must learn from experiments. Whatever proves itself here must be exercised again tomorrow in the best suited areas, perhaps in the Ukraine, then again in parts of districts.
XI. Realist-Political Leadership of the Peoples in the Eastern Area.
An ideological goal must be given to the peoples of the Eastern area, where already today and tomorrow even more the last inhabitant is used for essential agricultural or war economic task, above that where his use in military combat, whether it is against partisan or directly on the front has already begun. As long as no such goal is in front of the eyes of the Slav, we must expect that all forces, organized in the meantime, will turn against the German leadership in case of a military reverse, with which a far sighted policy always must count upon.
Never in world history was there such a condition, whereby a large people respectively several large peoples gave their entire working power and their blood in military commitments without knowing what results they can achieve by this for themselves, their children and their children's children. The fact that we do not recognize this thesis of experience of history will cost us tomorrow the blood of hundreds of thousands of German soldiers. There is no General of the German Armed Forces today who has any understanding that we believe to be able to dominate the Slavs without consideration of this fact.
Self Administration
This impression of the Eastern peoples that their work and military utilization in the German service is meaningful, can only be achieved by giving them self administration in a national-political respect as a goal. Secret slogans can actually never be kept secret, that is known. Today, the conviction is at large all through the Eastern area that Germany has the intention to put the Slav on the same level as the Negro; that the Slav must be biologically exterminated at the first possible moment, that at best he would be all to seek his livelihood beyond the Ural mountains.