SCHACHT: Many times I spoke not only before economists and professors who were my main auditors, but I often spoke upon invitation of the Minister of War and the head of the Army Academy before high-ranking officers. In all these lectures I continually referred to the financial and economic limitations to which German rearmament was subject and I warned against excessive rearmament.
DR. DIX: When did you first gather the impression that the extent of German rearmament was excessive and exaggerated?
SCHACHT: It is very difficult to give you a date. Beginning in 1935, I made continuous attempts to slow down the speed of rearmament. On one occasion Hitler had said—just a moment, I have it here—that until the spring of 1936 the same speed would have to be maintained. I adhered to that as much as possible, although, beginning with the second half of 1935, I continuously applied the brake. But after 1935 I told myself that, since the Führer himself had said it, after the spring of 1936 the same speed would no longer be necessary. This can be seen from Document 1301-PS in which these statements of mine are quoted, statements which I communicated to the so-called “small Ministerial Council” (kleiner Ministerrat). Göring contradicted me during that meeting, but I of course maintain the things which I said at the time.
After that I constantly tried to make the Minister of War do something to slow down the speed of rearmament, if only in the interest of general economy, since I wanted to see the economic system working for the export trade. Proof for the fact of just how much I urged the Minister of War is contained in my letter dated 24 December 1935, which I wrote him when I saw the period desired by Hitler coming to an end, and when I was already applying the brake. It has also been presented by the Prosecution as Document Number EC-293. In the English version of the document it is on Page 25.
I beg to be allowed to quote very briefly—all my quotations are very brief—from that document. I wrote a letter to the Reich Minister of War, and I quote:
“I gather from your letter dated 29 November”—and then come the reference numbers—“that increased demands by the Armed Forces for copper and lead are to be expected, which will amount to practically double the present consumption. These are only current demands, whereas the equally urgent provisions for the future are not contained in the figures. You are expecting me to obtain the necessary foreign currency for these demands, and to that I respectfully reply that under the existing circumstances I see no possibility of doing so.”
In other words, Blomberg is asking that I should buy raw materials with foreign currency, and I am stating quite clearly that I do not see any possibility of doing so.
The document goes on to say—and this is the sentence regarding the limit up to 1 April. I quote:
“In all the conferences held with the Führer and Reich Chancellor up to now, as well as with the leading military departments, I have expressed my conviction that it would be possible to supply the necessary foreign currencies and raw materials for the existing degree of rearmament until 1 April 1936. Despite the fact that, due to our cultural and agrarian policies which are being repudiated all over the world, this has been made extremely difficult for me and continues to be difficult, I still hope that my original plan may be carried out.”
That is to say, that I thought this proposed program could be carried out up to 1 April, but not over and beyond that.