Extracts from Dodd's diary, on Schacht's comments about German militarism and his wish that the United States would "leave Germany to have her way in Europe"

The Reich Marshal of the
Greater German Reich, Commissioner
for the Four Year Plan
Berlin, W.8., July 8, 1942. Leipziger Str. 3 Telephone 12 63 41, 12 70 71 Top Secret '
Special Delivery Letter
To: The High Command of the Armed Forces
a. c/o Division Chief Tischbein, or his acting representative.
b. c/o General of the Infantry Thomas, or his acting representative.
Re: Confiscation of Belgian gold.
The high demands on gold and foreign exchanges, which have currently been made for purposes of importance to the war, have led to a considerable straining of the reserves. Also the taking over of the gold supply of the Dutch Bank, which has meanwhile been put into effect and which has taken place in monthly instalments under the title of "contribution to the battle against Bolshevism" cannot again replace the reserves to the absolutely necessary extent.
The already often discussed taking over of Belgian gold, all of which has meanwhile arrived in Berlin at the equivalent value of 545 million Reichsmarks and has been taken into custody by the Reichsbank as a regular deposit [depositum regulaire] for the Belgian National Bank, can therefore not be postponed any longer. Legally speaking, three ways can be taken for the confiscation of the gold, namely:
1. the sale of the gold through the Belgian National Bank to the Reichsbank;
2. the claiming of the gold from the Belgian Chief Secretaries under the title of "external occupation costs" or as an anti-bolshevistic contribution; and
3. requisition on the basis of paragraph 52 of the Hague Regulation concerning land war.
The Military Commander in Belgium and Northern France, General of the Infantry van Falkenhausen, with whom I have thoroughly discussed the whole matter on June 26th in Brussels, is of the opinion that the directors of the National Bank, and presumably also the Chief Secretaries, would resign if they were forced by the German Commissioner at the National Bank to sell the gold to the Reichsbank. The Military Commander has the same fear in case of a claiming of the gold under the title of
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occupation costs. Since the resignation of the Chief Secretaries is not desired, the Military Commander has requested that we refrain from both of these ways.
In the case of a requisition of the gold on the basis of paragraph 52 of the Hague Regulation concerning land war, the Chief Secretaries would not have to cooperate. They would simply have-to acknowledge the requisition. For this reason their resignation might in this case presumably be avoided. The requisition of the gold is also permissible according to international law—that is the opinion of the legal division of the Ministry of Foreign Affairs, which was communicated to me by the Ministry of Foreign Affairs by means of a special delivery letter on the 18th of June, 1942—Ha Pol 3400/42 g—and a copy of which 1 enclose for your information.
The Military Commander therefore considers requisition the proper way and is prepared to take it, if he—in view of the significance of this matter — receives the appropriate assignment from the High Commander of the Army. I therefore request that the Military Commander in Belgium and Northern France be ordered to push aside, in favor of the German Reich, the claim of the Belgian National Bank over and against the Reichsbank for delivery of the gold at the weight of rd. 209.5 and to inform the Belgian Chief Secretaries of this.
The delivery of the gold will be confirmed to the Belgian National Bank by means of a certificate. At the request of the Military Commander I declare myself in agreement with the provision that we refrain in the meantime from demanding of the Belgain Chief Secretaries that they redeem this certificate under the title of occupation costs, [marginal note: The decision as to the reckoning of the value of the gold as well as the form of this reckoning is reserved for the future.]
The proposal brought forth in this connection by the Military Commander that, in the interest of a planned economy corresponding to the wish of the Belgian National Bank, the Reichskreditkassenscheine be called in from use either de jure, by doing away with the necessity of their acceptance as legal means of payment, or de facto, by means of not honoring them after this fact has become known, [this proposal] will be taken up for consideration and decided by itself because of the far-reaching retrograde effects of such a measure on other occupied territories.
The Ministry of Foreign Affairs, the High Command of the Armed Forces, the Board of Directors of the Reichsbank, the Reich Minister of Finance, as well as the Reich Minister of Econ-
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omy have received copies of this writing and have been requested to express their opinions in regard to the calling in of the Kreditkassenscheine.
Representing (signed) NEUMANN
To the High Command of the Army c/o Division Chief Sarnow or his acting representative.
The above copy I am sending for your information and with the request that you express your opinion in regard to the question of the invalidation of the Kreditkassenscheine in Belgium.
. Representing
(signed) NEUMANN
COPY
The Ministry of Foreign Affairs Nr. Ha Pol 3400/42 g.
Berlin W 8.
18th June 1942.
Special Delivery Letter
SECRET
In regard to the question of the Belgian gold an expression of opinion on the part of the Legal Division of the Ministry of Foreign Affairs is herewith sent to you for your information with the request that you express your opinion in this matter.
By order of
(signed) DUMONT
To the Reich Marshal of the Greater German Reich, the Commissioner for the Four Year Plan, c/o the Ministerial Counsellor Kadgien, the Directors of the Reichbank, c/o Director Reinel—one [enclosure] for each.
Enclosure to V.P. 11799 g.Rs. .
COPY
ACCOUNT [Description]
A series of misgivings confront the proposal that the gold of the Belgian National Bank be appropriated as occupation costs.
In case the transactions with the Belgian Chief Secretaries are postponed to a later time, the possibility of using the gold will correspondingly be delayed. In case the Belgians refused our demand of payment of the occupation costs in gold—which apparently can happen—we would have to use pressure in regard to Belgium, which, if used at all, would give the gold transaction
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an unpleasant character. The actual establishment of the payment of the occupation costs in gold would still not create any automatic liability on the part of Belgian National Bank with its gold. Rather it would of necessity occasion the Belgian Chief Secretaries to purchase gold needed for the payment of occupation costs from the Belgian National Bank. It seems questionable that they would be ready to do this.
These difficulties could be avoided if we appropriate the Belgian gold by means of requisition through the Military Commander in Belgium and Northern France. Since the foreign banks of issue are treated by Germany, at the request of the Reichsbank, as non-governmental organization, a requisition on the basis of article 52 of the Hague Regulation concerning land war could be considered. Such a requisition is a one-sided measure on the part of the occupying power, as a consequence of which no transactions with the Belgians are necessary. The claim of the Belgian National Bank to the delivery of the gold which it has on its account in the Reichsbank would have to be pushed aside, since the Military Commander is not empowered to undertake requisitions in the territory of the Reich. The requisition would have to be based in specie on the determined amount of gold in account here, since only then is the provision of payment in kind according to Article 52 of the Hague Regulation concerning land war satisfied and in this fashion an eventual Belgian objection that money claims cannot be requisitioned would be invalidated. In order to fulfill the provision for the use of payments in kind for the needs of the army of occupation, as contained in Article 52, one could if necessary tell the Belgian that the Military Commander will confer with the Reichsbank about the use of the requisitioned gold. That the requisition is proportional to Belgium's resources is not to be questioned.
The Military Commander would have to issue a confirmation of receipt to the Belgian National Bank according to Article 52, paragraph 3. The question as to whether the German Reich or the Belgian State effects the payment of the owed sum can be reserved for later consideration. A shoving off of the payment upon the shoulders of the Belgians would be entirely in agreement with Article 52 of the Hague Regulation concerning land war, since it is herein not determined, who in the end has to pay payments in kind.
In case one takes the ways of requisition, one must then get in touch with Bank of France. It is an established fact that the Bank of France apropos of the transaction undertaken at the end of the year 1940 has renounced all claims in regard to the
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Reichsbank. It is under obligation only to the Belgian National Bank. As far as the lawsuit of the latter against the Bank of France in the United States of America is concerned, the Bank of France in the case of a requisition on the part of Germany would not be able to maintain that its status had been impaired, since the requisition represents an act of war, the condition of war existing between Germany and Belgium must reckon in regard to the delivery of the gold.