“1.) The manner in which economic warfare has been conducted until now, in accordance with Prize Regulations, does not meet with military demands for ruthless severity.
“A large part of enemy mercantile trade including all exports in neutral ships is not covered.
“The requirements of naval law that neutral merchantmen be stopped and searched can no longer be fulfilled, in view of the strength of aerial reconnaissance and U-boat countermeasures in the enemy’s coastal approaches. Economic warfare according to Prize Regulations has therefore to be limited and in the North Sea and the Baltic must be left to surface craft only. In the Atlantic the U-boats in enemy coastal waters will limit their activities to attacks without warning on convoys, troop transports, and once it has been approved, armed and all enemy merchantmen, and will conduct economic warfare according to the law governing prizes only in exceptional cases. The use of the Operational Air Force for economic warfare is not possible. Economic warfare is conducted within the framework of international law. A possibility of controversy with neutral states is ruled out.”
Then one more sentence:
“If the Supreme War Command for political reasons should not be able at present to decide to wage the economic war in the most vigorous form possible by having recourse to a siege, it will be possible to increase the effectiveness of the policy of stopping enemy trade by a ruthless increase in the use of mines and by air attacks on enemy port installations. One cannot, however, expect a decisive result from the economic war in its present form.” (Document C-157, Exhibit GB-224)
FLOTTENRICHTER KRANZBÜHLER: The immediate result of that memorandum and of your report to the Führer was the order of 17 October?
RAEDER: Yes, and that provided: Firstly, that all enemy merchantmen could be torpedoed; and secondly, as a severer measure, that passenger ships in convoys could be torpedoed a short time after an announcement to that effect had been made. That was all done in connection with the intensification, measure for measure, which we had brought about in answer to individual acts of the enemy.
THE PRESIDENT: Dr. Kranzbühler, that long passage that the defendant has just read, if it has not been put in evidence yet, must be offered in evidence by you. I understand it is not in evidence at present.
SIR DAVID MAXWELL-FYFE: My Lord, I can help. I shall be using this document and I shall put it in.
THE PRESIDENT: Has it been offered in evidence?