SCHULTE-MÖNTING: Yes.
DR. SIEMERS: What advantages at all did the Navy have from their collaboration in the construction?
SCHULTE-MÖNTING: We were only interested in keeping alive the experiences gained in U-boat warfare during the last World War. Consequently the Navy was interested in seeing that constructors of U-boats continued along those lines.
DR. SIEMERS: In your opinion, was that prohibited according to the Treaty of Versailles?
SCHULTE-MÖNTING: No, I know of no paragraph which prohibits our activity in foreign countries along those lines.
DR. SIEMERS: In the beginning of February 1933 Admiral Raeder made his first naval report to Hitler. Do you know what Hitler, on that occasion, gave Raeder as the basis for rebuilding the Navy?
SCHULTE-MÖNTING: Yes, I remember it exactly, because it was the first report which the then Chief of the Naval Command Staff, Admiral Raeder, made to the Reich Chancellor Hitler.
Hitler said to Raeder that the basis of his future policy was to live in peace with England and that he intended to demonstrate that by trying to conclude a naval agreement with England. In this he wanted the German Navy to be kept relatively small. He wished to recognize Britain’s naval superiority because of her position as a world power. He would accordingly suggest an appropriate ratio of strength. He wanted an understanding with regard to the construction of our Navy; and we should take these, his political points of view, into consideration. Raeder was impressed with the statements, for they were completely in accordance with his own basic attitude.
DR. SIEMERS: Within the framework of this policy the German-British Naval Agreement was then concluded in 1935. Was the Navy as a whole and Raeder in particular pleased with this agreement, or did they see certain disadvantages in it?
SCHULTE-MÖNTING: Raeder and the Navy were very pleased with this agreement, although we had to impose voluntarily upon ourselves severe limitations for a certain length of time. By this agreement, in comparison with the Washington conference, I should say we ranged among the smallest sea powers. In spite of that, this agreement was generally welcomed, because friendly relations with the British Navy were desired, and it was believed that if we followed a wise and moderate policy, England in return would show her appreciation.