As was their wont, one of the first measures they put into effect was the exchange of the Luxembourg money at the rate of 10 Luxembourg francs to 1 mark. This was the subject of the ordinance of 26 August 1940, to be found in the document book under Number 195 (Document Number RF-195). This rate of exchange did not correspond to the respective purchasing power of the two currencies. It constituted a considerable levy on the wealth of the inhabitants and especially assured the Germans of a complete seizure of the monies. It thus procured for them the means for seizing a considerable part of the reserves of raw materials and manufactured goods of the country. The purchases were paid for in depreciated marks on the basis of controlled prices imposed by the Germans.
Finally, by the Ordinance of 29 January 1941, the Reichsmark was introduced as the only legal tender (ordinance submitted as Document Number RF-196). The Luxembourg francs and the Reichskreditkasse notes were taken out of circulation, as well as Belgian francs, up to then considered as currency of the Franco-Luxembourg monetary union. All of these became foreign currency, as from 5 February 1941.
I should like to draw the attention of the Tribunal to the fact that of all the countries occupied by Germany, Luxembourg is, like Alsace and Lorraine, one of the few countries which was totally deprived of its national currency.
Moreover, to procure for the Reich the financial means necessary for the prosecution of the war, the ordinance of 27 August 1940 (Document Number RF-197) prescribed compulsory delivery of gold and foreign currency. Moreover, the same ordinance stipulated that foreign shares and bonds had to be offered for sale to the Reichsbank at rates and under conditions fixed by the occupying power.
As has already been pointed out, the Germans seized industrial stocks. In this respect, the report dated 21 May 1940, on the economic situation in Holland, Belgium, and Luxembourg, contains information on the stocks found in the country:
1,600 million tons of iron ore; 125,000 tons of manganese; 10,000 tons of crude iron; 10,000 tons of ferro-manganese; 36,000 tons of plated products and finished products, and I could continue this enumeration. The German seizure spread from stocks to the management of the industrial production.
According to the memorandum presented by the Reparations Commission of the Luxembourg Government, Document Number RF-198, the total economic damages amount to 5,800 million Luxembourg francs at the 1933 value. This figure can be analyzed as follows:
Industry and commerce, 1,900 million; Railroads, 200 million; Roads and Highways, 100 million; Agriculture, 1,600 million; Damage to property in general, 1,900 million.
From the same official source, the total loss in capital represents about 33 percent of the national wealth of Luxembourg, before the war estimated at approximately 5,000 million Luxembourg francs.
The effect on the financial and monetary situation of the country was a loss exceeding 6,000 million Luxembourg francs. In these damages the increase in circulation of money and the amount of forced investments in Germany—more than 4,800 million Luxembourg francs—as well as an additional charge imposed upon the taxpayers of the Grand Duchy following the introduction of the German fiscal system figure particularly. To these burdens must be added the skimming of profits, fines, and the allegedly voluntary gifts of every kind imposed upon Luxembourg.