Further, on Page 12 of the statement, Dr. Michel writes:
“Now that the direction of raw materials and the placing of orders has been organized and is functioning efficiently, rigorous restrictions on consumption not important to war economy are a matter of prime consideration in France. The restrictions imposed upon the French population in respect of food, clothing, footwear, and fuel, have been for some time more severe than in the Reich.”
After having shown you, Mr. President and members of the Tribunal, in this brief introduction concerning the economic spoliation of France, the consequences of German domination upon this country, I give you an account of the methods employed to arrive at such a result. This will be the purpose of the four following chapters: German seizure of means of payment; clandestine purchases of the black market; outwardly legal acquisitions; finally, impressment of labor.
I. German seizure of means of payment.
This seizure was the result of paying occupation costs, the one-way clearing system, and outright seizures and levies of gold, bank notes, foreign currency, and the imposition of collective fines (Page 15).
Indemnity for the maintenance of occupation troops:
I shall not recapitulate the legal principles of the matter, but shall merely confine myself to a few explanatory remarks, so that you may realize the pressure which was brought to bear on the leaders in order to obtain the payment of considerable sums.
As I have had the honor of pointing out to you, in the Armistice Conventions the principle of the maintenance of occupation troops is succinctly worded, with no stipulation as to the amount and the method of collection. The Germans took advantage of this to distort and amplify this commitment of France, which became nothing more than a pretext for the imposition of exorbitant tribute.
At the first sessions of the Armistice Commission, the discussions bore on this point, while the French pointed out that they could only be forced to pay a contractual indemnity representing the cost of maintaining an army strictly necessary for the occupation of the territory. The German General Mieth had to recognize the just foundation of this claim and declared that troops which were to fight against England would not be maintained at expense to France.
This is evident from an extract of the minutes of the Armistice Commission, which I submit as Document Number RF-208. But later this General Mieth apparently was overruled by his superiors, since in the course of a subsequent session, 16 July 1940, without expressly going back on his word, he declared in this respect that he could not give any reply, that this question would no longer be discussed, and that, in short, everything necessary would be done to enable the French Government to draw up its budget. This appears from an extract of the minutes of the Armistice Commission which I submit as Exhibit Number RF-209.