First chapter—seizure of currency by the Germans:
To have at their disposal all means of payment, the Germans used almost the same methods in the various occupied countries. First, they took two principal measures. One was the issue of paper money, by ordinance of 9 May 1940, published on Page 69 of the Verordnungsblatt für die besetzten französischen Gebiete, official German gazette, which will subsequently be referred to by its official abbreviation VOBIF, which I submit to the Tribunal as Document Number RF-93. This ordinance concerned Denmark and Norway; and on 19 May 1940 was rendered applicable to the occupied territories of Belgium, Holland, Luxembourg, and France. The Germans proceeded to issue bank notes of the Reichskreditkasse which were legal tender only in the respective occupied countries.
The Germans then took a second measure: The blocking of existing currency within the occupied countries as a result of the ordinance of 10 May 1940, published in VOBIF, Page 58, which I submit as Document Number RF-94. In regard to Holland these ordinances are those of 24 June, 14 August, 16 August, and 18 September 1940, which are submitted as Document Numbers RF-95, 96, 97, and 98. In regard to Belgium these ordinances are those of 17 June and 22 July 1940, submitted as Document Numbers RF-99 and 100.
These measures, notably the issuing of paper money, left exclusively to the whim of the Germans without any possible control on the part of the financial administrations of the occupied countries, were to serve, as we shall see, as powerful means of pressure to impose the payment of enormous war tributes under the pretext of maintaining occupation troops as well as alleged payment agreements known as “clearing,” which functioned almost exclusively to the benefit of the occupying power.
The Germans thus procured for themselves, under false pretenses, means of payment from which they profited by realizing considerable sums for their sole benefit.
All agricultural and industrial products, raw materials, goods of every kind, or services, for which Germany apparently made regular payment by means of either notes of the Reichskreditkasse or by so-called clearing agreements or by war tributes known as indemnities for the maintenance of occupation troops, were exacted with full knowledge that no redemption would be forthcoming. Thus, we can be sure that, as a rule, such regulations were purely fictitious and were the most regularly used fraudulent procedure to effect the economic looting of the occupied countries of Western Europe.
These questions will be examined in a more exact manner later on. I shall limit myself for the moment to pointing out to the Tribunal that to effect the economic looting of the occupied countries with their own money, it was necessary that this money should preserve an appreciable purchasing power. Therefore, the efforts of the Germans were directed toward stabilization of prices. A severe regulation prohibiting rises in prices was subsequently promulgated by several decrees—VOBIF, Pages 8, 60, and 535, submitted as Document Number RF-101. Nevertheless, the application of such measures could not prevent economic laws from playing their part. The payment of excessive tributes, considering the resources of the invaded countries, could not but have as their primary result a continuous rise of prices. The leaders of the Reich were perfectly aware of the situation and watched very attentively the rise in prices, which they were attempting to moderate.
This we know principally from the secret reports of Hemmen, President of the Armistice Commission for German Economic Questions, which we will discuss when we examine the particular case of France.
Chapter 2—Sequestering of the production of the occupied countries:
When the Germans invaded the countries of Western Europe great disorder was created as the result. The population fled before the advance of the enemy. Industries were at a stand-still. German troops guarded the factories and prevented anyone from entering.