DR. SAUTER: And at that time, during the war, how was the question of this clearing dealt with?
NEUBACHER: Regarding the economic events in Greece, I can give you information based on my own observations only, starting with October 1942. At that time, when I first came to Athens, the Greek currency had already been considerably devaluated, and the circulation of banknotes had increased by something like 3,000 percent.
Greece also suffered an economic set-back due to the fact that, in addition to a progressing inflation, an attempt had been made to introduce in Greece a planned economy with ceiling prices along German lines. The result was, of course, that the merchants selling Greek goods suffered losses when they were paid later. On the other hand, when I arrived there the importers of German goods made tremendous profits, because they paid Reichsmark at the rate of 60 on the clearing and resold the goods at a rate of about 30,000. This chaos, due to the inflation in connection with the attempt of introducing a planned economy on the German pattern, could be remedied only by transforming the black market in Greece into a completely free market. The two experts of the Axis Powers introduced this measure with considerable success at the end of October 1942. Within a few weeks all shops and markets were full of goods and foodstuffs; the prices of food dropped to one-fifth and prices of manufactured products to one-tenth. This success could be maintained for 4 months in spite of increasing inflation.
DR. SAUTER: Dr. Neubacher, is it true that the Defendant Funk, who was Reich Minister of Economy at that time, proposed during a conversation or in correspondence he had had with you that, in spite of the shortage of goods prevailing in Germany, a considerable amount of goods should be sent from Germany and other European countries, particularly to Greece?
NEUBACHER: Reich Minister Funk, with whom I discussed the difficulties of my task, and I both fully agreed that a maximum of goods should be transported to Greece, and certainly not only food. I secured not only 60,000 tons of food at that time but also German export goods, since it was hopeless to try to stop an inflation or the effects of an inflation on the prices, if there were no supplies. Reich Minister Funk supported exports to Greece with the view to a restoration of normal market conditions with every means at his disposal.
DR. SAUTER: You know, Witness, that since transport from Germany to Greece had become impossible, the Defendant Funk made every effort to have goods transported on neutral ships, furnished with British navicerts, from Germany to Greece in order to combat as far as possible the already impending famine.
NEUBACHER: I think that was between 1941 and 1942 when I had not yet arrived in Greece. In 1943, when shipping in Greek waters had completely stopped for us, because all ships had been torpedoed and the railroads had become the object of incessant acts of sabotage and dynamiting, I, with the help of the Swedish Minister, Alar, who directed the International Relief for Greece, applied for British navicerts for food transports to Greece. The British granted this application, and when our own means of transport had ceased to exist, the Swedish boat Halaren went from Trieste or Venice to the Piraeus once a month, loaded with German food supplies for Greece.
DR. SAUTER: And Funk, the Reich Minister of Economy at that time, played an important part in these actions, did he not?
NEUBACHER: Reich Minister of Economy Funk took a very positive interest in the Greek question, a question which is unique in the history of economy, and he supported me in my efforts with every means at his disposal.
DR. SAUTER: Witness, do you know anything about the fact that the Defendant Funk advocated in particular that the occupation costs should be kept as low as possible, and that he took the view that it would be preferable that a considerable part of the occupation costs should rather be charged to the German account so that Greece should not be overburdened? What do you know about that?