Extract from a lecture, on the German naval construction program, including the construction of large battleships and U-boats and the increase in manpower, in violation of the Versaille Treaty

Information relating to German preparations for U-Boat construction and infringement of Clauses of the Versailles Treaty,
prior to 1935
Lecture by THIELE
The following information is taken from a lecture on "The Development of the Naval Budget 1930—1939" by Secretary (Flottenintendant) THIELE, OKM (E) (Budget Department of the German Admiralty) at the German Naval Training Center for Administrative Officers in Prague, 12th July, 1944.
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Ship Construction Plan
The era of the very large development of the Navy had therefore come at the moment of the seizure of power. Already in the first year after this, in March 1935, the construction of battle cruisers with a displacement of 27,000 tons was proceeded to. Such a vessel was ordered to be constructed. Thus one of the classes of the Treaty of Versailles which were the most important for us was at once violated in the naval sphere in a manner which in a
D-855
short time could no longer be camouflaged. Similarly the second important clause, forbidding the construction of U-boats, was violated. Orders were placed during that year for 2 large and 6 small U-boats, also for the light cruiser "Nürnberg". 8 minesweepers, and 7 E-boats. The U-boats were completed in separate parts, as their construction was under no circumstances to be apparent to the outside, these parts were stored in sheds for the time being and only needed to be assembled after the declaration of freedom to re-arm. The third one also of those clauses of the Treaty of Versailles that were the most disadvantageous for us, the limitation of personnel to 15,000 men, was immediately ignored after the seizure of power. The total personnel of the Navy was already 25,000 in 1934, and in 1935, the year of the London Naval Agreement, 34,000 men.
The year 1934- saw the placing of the order for the second battle cruiser, also of 2 heavy cruisers, 16 destroyers, 4 minesweepers, 2 E-boats, 10 medium and 18 small U-boats.