LT. BRYSON: This affidavit by a co-worker of Schacht describes in detail the many ingenious and often ruthless devices he used, including negotiating “stand-still” agreements, forcing payment in Reichsmark of interest and amortization on debts incurred in foreign currency, using scrip and funding bonds for the same purpose, suspending service on foreign-held debts, blocking foreign-held marks, freezing foreign claims in Germany, eliminating unessential foreign expenditures, requisitioning German-held foreign exchange, subsidizing exports, issuing restricted marks, bartering under clearing agreements, licensing imports, and controlling all foreign exchange transactions to the end of favoring raw materials for armaments.
The Tribunal is also asked to take judicial notice of Reichsgesetzblatt, 1934, Page 997; Reichsgesetzblatt, 1933, Part I, Page 349; and Reichsgesetzblatt, 1937, Part I, Page 600, relating to the clearing bank, the conversion bank, and the maturity of foreign loans, all of which decrees are mentioned in the affidavit.
Schacht even went so far as to invest foreign-held Reichsmark on deposit in German banks in rearmament notes, thus, as he put it, financing rearmament with the assets of his political opponents. Without reading therefrom, I refer your Honors to Document Number 1168-PS, Exhibit USA-37, being a memorandum from Schacht to Hitler, dated 3 May 1935, which already appears in the transcript on Pages 412 and 413 (Volume II, Pages 312, 313). Moreover, Schacht even resorted to capital punishment to prevent the loss of foreign exchange when frightened capital began to flee from the country. In this connection reference is made to the Law against Economic Sabotage, found in 1936 Reichsgesetzblatt, Part I, Page 999, of which the Tribunal is asked to take judicial notice.
Schacht took particular pride in the results which were accomplished under the stringent controls which he instituted under his New Plan. I refer the Tribunal to Document Number EC-611, in evidence as Exhibit Number USA-622, consisting of Schacht’s speech in Berlin on 29 November 1938. I wish to read into the Record an excerpt from the top of Page 10:
“If there is anything remarkable about the New Plan, it is again only the fact that German organization under National Socialist leadership succeeded in conjuring up in a very short time the whole apparatus of supervision of imports, direction of exports, and promotion of exports. The success of the New Plan can be proved by means of a few figures. Calculated according to quantity, the import of finished products was cut down by 63 percent between 1934 and 1937. On the other hand, the import of ores was increased by 132 percent, of petroleum by 116, of grain by 102, and of rubber by 71 percent.”
While President of the Reichsbank and Minister of Economics, Schacht acquired still another key position, that of Plenipotentiary General for War Economy.
He received this appointment from Hitler pursuant to the unpublished Reich Defense Law secretly enacted on 21 May 1935. This law is in evidence as Document Number 2261-PS, Exhibit Number USA-24, consisting of a letter from Von Blomberg dated 24 June 1935 to the chiefs of the Army, Navy and Air Forces, together with copies of the Reich Defense Law and the Cabinet’s memorandum relating thereto. Pertinent comments on and excerpts from this document appear in the transcript for 23 November, at Pages 278 and 292 (Volume II, Pages 220-229). I will simply state therefore that by virtue of this appointment Schacht was put in complete charge of economic planning and preparation for war in peacetime, except for certain direct armament production under control of the War Ministry. Upon the outbreak of war he was to be the economic czar of Germany with complete control over the activities of a number of key Reich ministries.
Schacht appointed Wohlthat as his deputy and organized a staff to carry out his directives. In this connection I offer in evidence excerpts from a pre-trial interrogation of Schacht under date 17 October 1945. This document is Exhibit Number USA-616 (Document 3729-PS). I wish to read into the Record a question and answer found at the bottom of Page 40 of the document book:
“Q: ‘Let me ask you a general question then: Do you take the responsibility as Plenipotentiary General for War Economy for the writings that were made and the actions that were done by Wohlthat and his assistants?’