TOP SECRET
Rue. I c. [Handwritten note:]
2nd Copy Kapitaen Zdd [?] has come back.
3rd destroyed 12 May [initials]
4th Copy to Maj. Gaedke. 16 May Ha.
4 Copies, 1st copy
[illegible notations]
Conference with the Branches of the Armed Forces at 1000 hours on 29th April 19fl . I.
Welcome
Purpose of meeting: introduction to the organizational structure of the economic sector of the action.
Barharossa—Oldenburg.
As already known, the Fuehrer, contrary to previous procedure, has ordered for this drive the uniform concentration in one hand of all economic operations and has entrusted the Reich Marshal with the overall direction of the economic administration in the area of operations and in the areas under political administration.
The Reich Marshal has delegated this function to an economic general staff, working under the director of the industrial armament office [Chef Wi Rue Amt].
Under the Reich Marshal and the economic general staff, the supreme central authority in the area of the drive itself is the Economic Staff Oldenburg for sqoecial duties under the command of Major General [Generalleutnant] Schubert.
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His subordinate authorities, geographically subdivided are:
5 economic inspectorates
23 economic commands and
12 sub-offices, which are distributed among important places within the area of the economic commands.
These offices are used in the military rear area; the idea is that in the territory of each Army Group, an economic inspectorate is to be established at the seat of the commander of the military rear area, and that this inspectorate will supervise the economic exploitation of the territory.
A distinction must be made between the military rear area on the one hand and the battle area proper and the rear area of the army on the other hand. In the last two, economic matters are dealt with by the IV Econ (IV Wi) of the Army Headquarters Commands, i.e. the liaison officer of the industrial armament office within the supreme command of the armed forces at the army headquarters commands. For the battle area, he has attached to him: technical battalions, reconnaissance and recovery troops for raw materials, mineral oil, agricultural machinery, in particular tractors and means of production.
In the territory between the battle and the military rear area, the rear area of the Army, group IV Econs at the various field commands are placed at the disposal of the liaison officer of the industrial armaments office in order to support the army headquarter commands specialists responsible for supplying the troops from the country's resources and for preparing the subsequent general economic exploitation.
While these units move with the troops, economic inspectorates, economic commands and their sub-offices remain established in the locality.
The new feature inherent in the organization under the command of the Economic Staff Oldenburg is that it does not only deal with military industry, but comprises the entire economic field. Consequently, all offices are no longer to be designated as offices of the military industries or armaments, but quite generally as economic inspectorates, economic commands etc.
This also corresponds with the internal organization of the individual offices which, from the Economic Staff Oldenburg down to the economic commands, requires a standard sub-division into three large groups, i.e.
Group M dealing with troop requirements, armaments, industrial transport organization
Group L which concerns itself with all questions of food and agriculture, and
Group W which is in charge of the entire field of trade and industry, including raw materials and sup-
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pliers, further questions of forestry, finance and banking, enemy property, commerce and exchange of commodities and manpower allocation.
Secretary of State Backe is appointed Commissioner for Food and Agriculture in the General Staff; the problems falling within the field of activities of Group W are dealt with by General v. Hanneken.
Before giving further details of the particulars of organization and staffing of Group M, of which we have to take charge, here is a short summary on the plans.
II.
Local Sub-Division
(Map already handed over) may entries explain code-names?
Of the 5 inspectorates, 4 have been established from the outset, while the 5th remains in reserve for an assignment temporarily undecided.
1. Leningrad (Holstein)
with economic commands at
and sub-offices at
Vilna
Riga
Reval
Leningrad
Murmansk
( Wologda Archangel
2. Moscow (Saxony)
with economic commands at
and sub-offices at
Minsk
Moscow
Tula
Gorki
f Briansk Jaroslawl L Rybinsk
3. Kiev (Baden)
with economic commands at
and sub-offices at
693256—46—52
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Lddz Kiev Kishinev Odessa - Charkov Kn j epr opetr o vsk Stalino Rostov Stalingrad
Sevastopol
Kerch
Voronesh
Kursk
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Finally
4. Baku (Westphalia)
with economic commands at
' Krasnodar Grozny Tiflis Baku
and a sub-office at
Batum.
Besides the 5th inspectorate, with the code-name of Hesse, an economic command (Borkum) and 2 sub-offices are held in reserve.
The question is now how best to take into account local and technical requirements in staffing the individual offices.
In the Economic Staff Oldenburg and in the economic inspectorates, which in all essentials have the same organization, a differentiation according to geographical points of view appears unnecessary, as in each of the gigantic fields of activity every type of question arises and therefore all departments must be staffed. .
The gentlemen will therefore find in the strength reports, which arc in their hands, both in the Economic Staff Oldenburg and in all economic inspectorates, after each C. 0. and his personal assistant a staff group, which in accordance with the scheme submitted to you contains: the adjutants's office,
the office for the establishment of the authorities,
counter-intelligence,
signals and communications,
command of the staff quartermaster,
messing officer, and
interpreter.
In the same manner, Group M is to be staffed uniformly with all branches of the armed forces (army, navy, air, administration) and the transport, technical, general and military supplies divisions. It is impossible to effect any economics here.
Economic commands also start from the common denominator of a normal strength which is likewise submitted to you. It is however neither necessary, nor desirable to fill it in all economic commands to the full extent or in an equal measure; the decisive factors here are the individual peculiarities of the various regions.
In all economic commands, the posts in the staff group, transport, technical and general offices will have to be filled. But
III.
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whether the individual branches of the armed forces wish to be represented in the respective economic command will depend essentially on whether the branch of the armed forces in question has any interests of any significance to look after in the territory.
It must be borne in mind that the whole organization requires a gigantic staff apparatus and that, in view of the general lack of qualified personnel, only such posts can be filled as are justified by practical necessity.
The branches of the armed forces will therefore have to decide in which of the 23 economic commands they wish to be represented. To fill all 4 offices of army, navy, air and administration will be necessary only in a few centrally situated spots. If on the other hand in some cases all branches of the armed forces require no representation, we would substitute for the planned division into 4 parts, a joint office for armament industry and staff it from the Office of Industrial Armament.
In the interests of speed—the establishment has to be completed by the 15th May—we have to request the branches of the armed forces to communicate their decision to the Office of Industrial Armament by Friday 2nd May.
In order to prepare to a large extent and to facilitate this decision, Captain (Cav.) Jonas, who has a profound knowledge in ihis field, has compiled a list, on which after the name of each economic command he has indicated by means of the initial of the branch of the armed forces in question which of these branches is in his opinion likely * * * represent * !)! *
by an office.
The material has been submitted to you in the form of the lengthy treatise R., in particular in the form of the economic map and the list showing all firms which are important from the point of view of industrial armaments. In order, however, to assist the gentlemen to form their own opinion in the short time at our disposal, Captain (Cav) Jonas will now illustrate the peculiarities of the different areas in the field of industrial armament by means of a short lecture.
Lecture Captain (Cav.) Jonas.
Further Points to be discussed
a. In the interests of staff economy, we want to staff some of the above-mentioned authorities by enlisting personnel from authorities already existing in occupied territories, e.g. the Moscow Economic Inspectorate is to be staffed by the armament industry office (Rue In A) to be withdrawn from France.
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Murmansk Economic Command is to be staffed from Norway Moscow Economic Command by Troppau Armament Command Lodz Economic Command by Radom Armament Command Sevastopol Sub-Office by Aarhus Sub-Office.
Even though these units will have to be brought up to the required strength and supplemented, their employment at least creates a basis and thus effects a considerable economy in staff.
b. Which members of branches of the armed forces are already earmarked for Rue VI?
c. In which economic commands are the commander or for instance the head of the transport office to be appointed from the members of a branch of the armed forces which has an overriding interest?
TRANSLATION OF DOCUMENT II57-PS
Date: Date Unknown
Total Pages: 1
Language of Text: English
Source of Text: Nazi conspiracy and aggression (Office of United States Chief of Counsel for Prosecution of Axis Criminality. Washington, D.C. : U.S. Government Printing Office, 1946.)
Evidence Code: PS-II57
HLSL Item No.: Unknown