GISEVIUS: Schacht always told me that he had financed the rearmament program for purposes of defense. Schacht was convinced for many years that such a large nation in the center of Europe should at least have means of defense. I may point out that at that time large groups of the German people were possessed of the idea that there was a possible danger of attack from the East. You must not forget the type of propaganda with which the German people were inundated at that time, and that the reasons given for this particular danger from the East were based upon Polish aspirations concerning East Prussia.
DR. DIX: Did Schacht also discuss with you at that time the fact that this rearmament was serving his political purposes, as through it he might be able to start discussions on general disarmament again?
GISEVIUS: I beg your pardon. Unfortunately I forgot to emphasize this point myself. Schacht was of the opinion that all means should be used to bring about discussions on rearmament again. He had an idea that very soon—I think he had held that opinion since 1935—the attention of opponent countries should be drawn to German rearmament; and then Hitler, because his rearmament was now known, would be forced to resume discussions at the disarmament conference.
DR. DIX: Was that which you have just said the subject of your conversation with Schacht at that time, or is that your judgment now?
GISEVIUS: No, I remember this conversation very well, because I thought Hitler’s inclinations lay in other directions than in attending a disarmament conference. I thought Hitler to be of an entirely different mentality, and was somewhat surprised that Schacht considered it possible that Hitler might harbor such thoughts.
DR. DIX: Did you have the impression from your conversations with Schacht that he was informed in detail of the type, speed, and extent of the rearmament?
GISEVIUS: I well remember how often Schacht asked me and friends of mine whether we could not help him to get information about the extent of rearmament by inquiring at the Reich War Ministry. I have already described yesterday the efforts he made to get details through Oster and Thomas.
DR. DIX: Could you tell the Tribunal whether Schacht made any attempt to limit armament expenses, and thus limit the extent and speed of the rearmament; and, if so, when he made these efforts?
GISEVIUS: To my knowledge, he started to attempt this as early as 1936. In the heated debates about Schacht’s resignation as Minister of Economics in 1937, his efforts in this direction played a very important part. I recall that practically every conversation was concerned with that point.
DR. DIX: Now, it is said—and quite understandably also by the Prosecution—that the reasons Schacht gave, even in official reports and so on, for the necessity of these limitations were primarily of a financial-technical nature, that is to say, he spoke as an anxious economic leader and an anxious president of the Reichsbank and not as an anxious patriot afraid that his country might be plunged into war.