Letter to Schacht on the jurisdiction of the Four Year Plan offices (the Office for German Raw and Synthetic Materials) and the Ministry of Economics in programs to increase production of raw materials and synthetics

Berlin, November 26, 1936.
Ministerpraesident General Goering Plenipotentiary for the Four-Year-Plan St.M.Dev.1007.
Subject: Jurisdiction re Development of Raw and Synthetic Materials.
I
1. According to No.V of my decree of October 22, 1936—St.M. Dev.265—the Office for German Raw and Synthetic Materials will handle the following tasks:
a. Increase in production of German industrial raw material,
b. Planning and execution of production of German synthetic materials with the exception of industrial fats,
c. Promotion of research required in connection with the tasks mentioned,
d. Mineral oil industry, including control of imported materials as well as materials produced outside of the Four-Year-Plan.
Under No.XI paragraph 2 of the same decree, I made clear that only the head of the Office for German Raw and Synthetic Materials will carry the responsibility for carrying out the raw and synthetic materials program within the limits of the means at hand and also of the available materials and manpower. An exception will be the department for industrial fats, which according to my order is under the supervision of engineer Keppler.
On the other hand I have decided under No.I paragraph 2 of the above mentioned decree that the work must be done in fullest cooperation with the proper offices, whose responsibility remains unlimited within their field of work.
For the competency of the Office for German Raw and Synthetic Materials on one hand and of the Reich Ministry of Economics and the subordinate offices on the other hand as also for the cooperation between the Reich Ministry of Economics and the Office for German Raw and Synthetic Materials, the following procedure will apply:
II
2. The mineral-oil industry (under d above) will be controlled by the Office for German Raw and Synthetic Materials. It includes in its field of work the following:
a. Promotion of increased industrial production;
b. Control of the existing fuel-production plants;
c. Increase in oil production;
d. Regulation and supervision of fuel storage;
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e. Safeguarding of the supply of the Armed Forces and industry ;
f. Regulation of the fuel market;
g. Promotion of import.
To carry through these tasks, the powers in the field of the mineral oil industry, which had been delegated to the Reich Minister of Economics by a decree of September 4, 1934 (RGB1 I, p.816) concerning commodity exchange—in particular the supervision over the control agency for mineral oil—are transferred to the Head of the Office for German Raw and Synthetic Materials. Orders of the Reich Office for Foreign Exchange Control will also be issued to this control agency with the approval of the Office for German Raw and Synthetic Materials only, in accordance with and pursuant to section 2, paragraph 2 and section 3, sentence 2, of the law on Foreign Exchange Control of 4 February 1935 (RGB1 I p. 106).
The bureaus "Distribution of Raw Material" and "Foreign Exchange" [Devisen] of the Four-Year-Plan shall participate in the work of the mineral oil industry to such an extent as their purposes should warrant.
The Institute for Scientific Research [Wifo] will be subordinate to the Office for German Raw and Synthetic Materials insofar as this Institute carries out construction of fuel tank storage plants.
The field of work of the bureau of the fuel industry is so closely related to that of the Office for German Raw and Synthetic Materials, that the supervision must be exercised by the latter. Insofar as it remains a part of the general organization of economics, instructions on general policy will be issued by the Reich Ministry of Economics. In order to maintain this connection, it is necessary that these instructions shall always be given in agreement with the Office for German Raw and Synthetic Materials.
Ill
1. The task of planning and carrying out of production of German synthetic materials (above under b) concerns the production of materials, which will replace raw materials, which up to the present have not been produced in Germany at all or have only been produced in insufficient quantities. The duty of the Office for German Raw and Synthetic Materials is the development of suitable and adequate production branches, which must be set up within the framework of the Four-Year-Plan. The development of the production in question includes the guarantee for the financing of plants.
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The Office for German Raw and Synthetic Materials shall regulate in close cooperation with the bureau "Distribution of Raw Material" of the Four-Year-Plan the systematic allocation of synthetic materials from their production to their further processing, and the use of those materials wherever the production is sufficient and the materials can be used as a substitute for raw materials.
In organizing, financing and executing the production of German synthetic materials as well as in allocating these for further processing, the above mentioned offices will be held responsible for the prompt, complete, and expert accomplishment of the tasks to be solved within the framework of the Four-Year-Plan.
2. Adequate participation of the Reich Ministry of Economics will be necessary in order to protect the natural relationships with the whole system of economics and therefore with the general economic policy. This will occur in the setting up of the new branches of production, especially when experts of the Reich Ministry of Economics will be consulted, who will thus be given the opportunity to judge the plans submitted by my offices and their execution from a professional and over-all-economic point of view. Financially the cooperation of the Reich Ministry of Economics—regardless of the participation of the Reich Ministry of Finance—will exist insofar as agreements about market guarantees—except in the field of mineral oil industry—are concluded by the Reich Minister of Economics, and this in addition to the current cooperation of an expert competent in the field. The participation of the Reich Minister of Economics in the allocation of synthetic materials to further processing takes place through the control agencies as in the case of other raw material control.
IV
It is self evident that, in view of the tasks which are handled by the Office for German Raw and Synthetic Materials, research (compare above under c) shall be brought to the closest attention of the executive office. A technical surveying office has been established which will accumulate practical knowledge in the relevant fields of work, and which will also be at the service of other departments. In view of this it seems unnecessary to maintain any longer with the Reich Ministry of Economics the present office of a Commissioner for Raw Materials. I request, therefore, that this agency be dissolved.
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The increase in production of German industrial raw materials within the framework of the Four-Year-Plan (compare above under a) will be mostly concerned with increased production of the mining of metallic raw materials. The planning and determination of objectives as well as the control over the execution of the tasks which must be accomplished within the framework of the Four-Year-Plan, are the responsibility of the Office for German Raw and Synthetic Materials which supersedes the authorities which have heretofore been in charge of these tasks. This does by no means exclude the further participation of these authorities. On the contrary, the Office for German Raw and Synthetic Materials will call on them as much as possible to insure a smooth and efficient execution and a complete and expert control of the work. Close cooperation must be maintained with the Department of Mining of the Reich Ministry of Economics for which the directives under in No.2 will apply. Under the jurisdiction of the Department of Mining will remain specifically the policing of mines and the general economic-political management of existing and newly constructed plants, as has been the practice and as it is specified by law. The Department of Mining will maintain close connections with the Office for German Raw and Synthetic Materials insofar as their activities will affect the work of the latter office. The above mentioned instructions re financing will also apply to these activities of the Office for German Raw and Synthetic Materials.
VI
In its work the Office for German Raw and Synthetic Materials will have to keep in direct contact with the expert of your organization. If, in the course of business negotiations, differences of opinion should occur between my office and those offices subordinate to you, they will be cleared in concurrence with your Ministry.
signed Goering
To
The Reich and Prussian Minister of Economics.
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