Germany was a highly-developed industrial nation and did not need foreign money, and the United States at that time was going in more for colonial development and could make good use of foreign capital.
We now hit the bottom. When we were no longer able to pay our interest abroad, some countries resorted to the method of no longer paying German exporters the proceeds from the German exports, but confiscated these funds, and out of this paid themselves the interest on our debts abroad; that is, effecting a settlement, so to speak. That was the so-called “clearing system.” The private claims were confiscated in order to meet the demands of foreign creditors.
To meet this development, I looked for a way out to continue German exports. I set out a very simple principle: “I will buy only from those who buy from me.” Therefore, I looked around for countries which were prepared to cover their needs in Germany, and I prepared to buy my merchandise there.
That was the New Plan.
THE PRESIDENT: I do not know what we have to do with this, Dr. Dix.
DR. DIX: Well, to make a long story short, the New Plan had nothing to do with the intention to rearm, let alone with any aggressive intentions.
SCHACHT: Absolutely nothing.
DR. DIX: In this connection, can you give an estimate as to what percentage of German economic production was armament production?
SCHACHT: That question has been put to me in previous interrogations and at that time I was not able to answer it, because I could not recall what amount Germany expended on her armament. Now, from the testimony of Field Marshal Keitel, we have heard here that armament expenditure during these years when the Reichsbank was still co-operating, 1934-35, 1935-36, 1936-37 and so on, amounted respectively to 5,000 million Reichsmark, 7,000 million Reichsmark and 9,000 million Reichsmark; that is the estimate of experts. The production of the entire German economy during these years could be estimated approximately at 50-60,000 million Reichsmark. If I compare that with the armament expenditure, which has been stated here by a witness, then we find that armament expenditure amounted to about 10 to 15 percent of the entire German economy during the years when I had anything to do with it.
DR. DIX: Then, in the course of the cross-examination, there came up the question of your willingness or unwillingness to give up the office of Plenipotentiary for War Economy, and in order to prove your statement that General Von Blomberg did not wish you to give up that office, you referred to a document which has been submitted by the Prosecution. I am referring to Document EC-244, and it is a letter from the Reichswehr Minister, Von Blomberg, to Hitler, of 22 February 1937. It has already been read, so there is no need to do so now. May I only point out that in the last paragraph Blomberg expressed the desire that the Führer would direct or get the Reichsbank president to remain in office, so that covers the statement made by Schacht. Furthermore, in the course of cross-examination by Mr. Justice Jackson, mention was made of your credibility concerning the statement on your colonial aspirations; and from the point of view of colonial policy without mastery of the sea—Germany had not the mastery of the sea—can Germany have any colonial problems? That was the question and answer; and in that connection I would like to ask you: Did Germany have colonies before 1914?