SIR DAVID MAXWELL-FYFE: I told you, Defendant, that I was next going to ask you a question about Document C-29, which is on Page 8 of the English Document Book 10 and on Pages 13 and 14 of the German document book. You will remember, this document gives general directions for export given by the German Navy to the German armament industry...
RAEDER: Yes.
SIR DAVID MAXWELL-FYFE: ...and you told us when you were dealing with the document that you wanted your service not to be small-minded about matters of a not very high secrecy but, in addition to that, your general policy was that the German armament firms should develop a foreign trade so that they would have the capacity to deal with the increased demands of the German Navy as soon as possible. Is that right, is that a fair summary, or shall I repeat it?
RAEDER: Yes, but it must be added that I said in two places that we hoped at that time that the Treaty of Versailles would be relaxed, because it was a comparatively favorable period for negotiations for disarmament and we already had the governments headed by Von Papen and Von Schleicher, both of whom showed great understanding for the needs of the Armed Forces and therefore fought hard for that at the disarmament conference. So a definitely legal development might be hoped for in this direction; and on the other hand, our entire industry was unable to cope with armaments production except on an insignificant scale and had therefore to be increased. I again stress the fact that it had nothing to do with the Hitler regime. That decree just happened to come out on 31 January.
SIR DAVID MAXWELL-FYFE: I don’t think you are really disagreeing with me that your policy, your broad economic policy for the German armament industry, was to develop its export trade so as to be able to deal with increased home requirements in future years; that is what you advocated, isn’t it, that the German armament industry should at once increase its export trade so as to be able to deal with increased home requirements when these requirements arose? Isn’t that right?
RAEDER: Yes, that is correct but I do not quite understand that expression. Did you say “Eigenhandel” or “Eisenhandel”—internal trade or iron trade? I did not quite hear the expression—“Eigenhandel” or “Eisenhandel”?
SIR DAVID MAXWELL-FYFE: “Aussenhandel” (Foreign Trade).
RAEDER: “Aussenhandel”—yes, undoubtedly we wanted to be able to compete industrially with other nations, so that our industry would be in favorable position, and would gain strength.
SIR DAVID MAXWELL-FYFE: Now, I will ask you to turn to Document Number C-135, which is Page 21 of the—sorry My Lord, Page 20 of the English document book and Page 73 of the German document book.
THE PRESIDENT: Book 10.