“3. The Führer demands to keep the construction of the U-boats secret, in consideration of the Saar plebiscite.”
In order to continue the vital increase of the Navy, as planned, the Navy needed more funds than it had available; so Hitler proposed to put funds of the Labor Front at the disposal of the Navy.
We have another Raeder memorandum of a conversation between Raeder and Hitler on 2 November 1934. Of this I have a photostatic copy of the German typed memorandum, identified as our C-190. This one, again, is not signed, but it was found in Raeder’s personal file and I think he will not deny that it is his memorandum. I offer it in evidence as Exhibit USA-45.
It is headed: “Conversation with the Führer on 2. 11. 34 at the time of the announcement by the Commanding Officer of the ‘Emden’.
“1. When I mentioned that the total funds to be made available for the Armed Forces for 1935 would presumably represent only a fraction of the required sum, and that therefore it was possible that the Navy might be hindered in its plans, he replied that he did not think the funds would be greatly decreased. He considered it necessary that the Navy be speedily increased by 1938 with the deadlines mentioned. In case of need he will get Dr. Ley to put 120 to 150 million from the Labor Front at the disposal of the Navy, as the money would still benefit the workers. Later, in a conversation with Minister Göring and myself, he went on to say that he considered it vital that the Navy be increased as planned, as no war could be carried on if the Navy was not able to safeguard the ore imports from Scandinavia.
“2. Then, when I mentioned that it would be desirable to have six U-boats assembled at the time of the critical political situation in the first quarter of 1935,”—that’s the following year, foreseeing—“he stated that he would keep this point in mind, and tell me when the situation demanded that the assembling should commence.”
Then, there is an apostrophe and a note at the bottom:
“The order was not sent out. The first boats were launched in the middle of June ’35 according to plan.”
The development of the armament industry by the use of foreign markets was a program encouraged by the Navy, so that this industry would be able to supply the requirements of the Navy in case of need.
We have an original German document, again headed “Geheime Kommandosache” (secret commando matter)—a directive of 31 January 1933 by the Defendant Raeder for the German industry to support the armament of the Navy.