“A: ‘I would not have ever appointed a man like Göring who didn’t understand a bit about all these things.’ ”

Schacht and Göring immediately became embroiled in a conflict of jurisdiction. On 26 November 1936 Göring issued a directive regarding raw and synthetic material production. I offer in evidence Document EC-243, Exhibit Number USA-637, consisting of a copy of this directive. It shows that Göring’s Office for Raw and Synthetic Materials pre-empted control over large economic areas previously in the hands of Schacht. As an example, I will quote from Paragraph V of the directive on Page 4 of the document:

“The planning and determination of objectives, as well as the control over the execution of the tasks which must be accomplished within the framework of the Four Year Plan, are the responsibility of the Office for German Raw and Synthetic Materials, which supersedes the authorities which have heretofore been in charge of these tasks.”

On 11 December 1936 Schacht found it necessary to order all supervisory offices in the Ministry of Economics to accept instructions from him alone. I offer in evidence Document EC-376, Exhibit Number USA-638, consisting of a circular letter from Schacht to all supervisory offices under date of 11 December 1936, and I quote from the second paragraph:

“The supervisory offices are obliged to accept instructions from me alone. They must answer all official inquiries for any information of the Office for German Raw and Synthetic Materials in order to give any information at any time to the fullest extent.”

And a little further down:

“. . . I herewith authorize the supervisory offices to take the necessary measures for themselves. In case doubts should result from requests of the above offices and these doubts cannot be cleared by oral negotiations with the experts of these offices, I should be informed immediately. I will then order in each case the necessary steps to be taken.”

The military sided with Schacht, who had rearmed them so well. I offer in evidence Document EC-420, Exhibit Number USA-639, consisting of a draft of a memorandum by the Military Economic Staff, dated 19 December 1936. I wish to read from Paragraph 1:

“(1) The direction of war economy in the civilian sector in case of war can be handled only by the person who in peacetime has borne the sole responsibility for the preparations for war.