The Reichwehr Minister
[Stamped]
9 Feb. 1934
Berlin
7 Feb. 1934 50 copies 14th copy
Stamped
WaWi
12 Feb. 1934
Secret Command Matter
Minutes of Conference of the sixth session of the Working Committee of the Reich Defense Council [Footnote: "the reports of the individual departments are repeated in form of excerpts"] [Stamp on bottom of first page: No. 279/34 g. Kdos. Wa Wi"]
time: 23 Jan. 34
23 Jan. 34
24 Jan. 34 24 Jan. 34
Participants : Reichswehr Ministry: Troop Office:
Beginning
End
Beginning
End
10:15 A.M. 13:10 P.M. 10:15 A.M. 13:50 P.M.
Lieutenant General Beck
Colonel v. Gossber (only on 24 Jan.)
Lt. Col. Stapf
Lt. Col. Niedenfuehr
Lt. Col. Jodi
Ministry Counsellor Dr. Weber Maj. Zorn Maj. Wagner
Maj. Richter (only on 24 Jan.)
Maj. (retired) Gercke Capt. Wolff Capt. Prueter Capt. Schmundt
448
EC-404
Wehr Office: Col. Guderian Maj. Osterkamp Maj. Nehring Maj. Nieter Maj. Irmisch (only on 24 Jan.) Maj. (retired) Punt Capt. Koelitz
Minister Office: Major General v. Reichenau (only on 24 Jan.) Col. v. Vietinghoff Corvette Capt. Langsdorff Major Wable Capt. Boehme Capt. Count Kanitz Capt. (retired) v. Holtzendorff Capt. (retired) Heiss (only on 23 Jan.)
Arms Office: Lt. Col. Stud Maj. Warlimont Maj. Hauger (only on 24 Jan.)
Administration Office: Ministry Councillor Reich Ministry Counsellor Heufer
"H", Army: Division Chief Kuethe (only on 23 Jan.) "Regierungs" Counsellor Muehle
Navy Administration: Rear Admiral Dr. (honorable degree) Groos Fleet Capt. Knenipel Fleet Capt. Ciliax Fleet Capt. (retired) Gochle Corvette Capt. Horstmann Corvette Capt. Nordmann Corvette Capt. Machens (only on 24 Jan.) Lieutenant Capt. Wagner Ministry Counsellor v. Stein Ober Regierung Counsellor Beuster (only on 24 Jan.)
444
EC-404
Reviewers for the Reich Defense of the Reich Departments and the Prussian State Ministry.
Foreign Office: Legation Secretary v. Buelow
Reich Ministry of the Interior: Legation Secretary Haas (only on 23 Jan.) Ministry Counsellor Erbe
Reich Finance Ministry: Ministry Counsellor Dr. Bender Ministry Counsellor Wapenhensch
Reich Economy Ministry: Ministry Counsellor Godlewski Regierung Counsel Dr. Barth
Reich Labor Ministry : Ministry Counsellor Schroeder Reich Labor Office Director Jaspersen (only on 24 Jan.) Lt. Col. (retired) Hofmann Reich Comipand of the Labor Service
Reich Post Ministry: Ministry Counsellor Delvendahl (only on 23 Jan.) Lt. Col. Dohne, "V.O." with the Reich Post Ministry (only on 23 Jan.)
Reich Traffic Ministry: Ministry Counsellor Schmidt Regierung Banrat Walther Reichsbahn Director Dr. Ebeling (only on 23 Jan.) Ministry Counsellor Sussdorf Reichsbahn Oberrat Luettge Maj. Zuckertort, "VO" with the Reich Traffic Ministry
Reich Justice Ministry: Ober-Regierungsrat Dr. Riese
Reich Ministry for Food and Agriculture: Ober-Regierungsrat Dr. Dietrich Major (retired) Kriegsheim Staff director of the main division 1 in the Administration Office of the Reich Food Estate
693260—46—29 445
EC-404
Reich Air
Ministry:
Prussian State Ministry :
Supreme SA— Command:
Major (retired) Speidel Capt. (retired) Behrendt Regierungsrat Giessler Mr. Heydenreich (only on 24 Jan.) Mr. Tschirsig (only on 24 Jan.)
Regierungsrat Dr. Schnitzler
Brigadefuehrer Juettner Sturmbann-fischrer Count v. d. Schulenburg.
The Chief of the Troop Office
Lt. Gen. Beck: opens the sixth session and welcomes the representatives of the chief of staff of the SA and of the Reichsbahn Administration who are present for the first time.
Pointing to the military political situation, as was stated in the beginning of the fifth session, Lt. General Beck emphasizes that the preliminary work for the Reich defense allows for no delay.
Establishment of the actual state of preparations is the purpose of this session. It represents the basis for the continued work. At the same time, the competence of various offices, particularly in the field of war economy has to be settled definitely.
The questions raised by the Reichswehr Ministry may give some suggestions to the report writers.
Reich Finance Ministry First Report: Ministry counsellor Dr. Bender
Questions 1-3 deal mainly with measures for the accomplishment of preparedness of financial for war.
Answer: This question is divided in three main groups
a. Financing a mobilization and the need for the first 30 days.
b. Making the funds available.
c. Financing the continued war course.
Measures have not been taken, since decisions of the participating departments chief have not yet been submitted. An examination has been concluded in the Reich Finance Ministry as far as department reviewers are concerned.
Later negotiations with the Reichsbank were taken up with the Reich Economy Ministry participating. At present, preliminary questions are being worked on at the Reichsbank. In about three months, the preparatory work can be finished as far as department reviewers are concerned.
446
EC-404
In case of a suddenly occurring conflict, financing of mobilization can be carried out in the shortest time (24 hours). According to the opinion of the department reviewers of the Reichsbank, the inventories of the Reichsbank of piece money (Stueck Geld) (paper money and coins) are sufficient.
. At present, statistics are also being compiled to be able to make comparisons with inventories at the outbreak of the world war. Important is the knowledge of Army needs for each single day of the first 30 days of mobilization and for the second and third months of the war. The question of financing later conduct of the war is not urgent, but has to be examined.
The question of to what extent purchases for the mobilization can be made against "Anerkennt-Nisse"—acknowledgments have to be answered from the standpoint of Reich finances to the effect that should be made of them as much as possible.
An early knowledge of the new War Services is very desirable.
Lt. General Beck: .
Data on the need of the Wehrmacht (armed forces) have to be compiled speedily.
A draft of the War Services Law will be handed out in February.
Question U: What Financial and fiscal measures will have the effect of strengthening plants essential for war and of maintaining them?
Answer: Finance political measures: Subsidies, loans and shares.
Fiscal measures:
1. Paragraph 1 of the Reich Taxation Regulations [Reich
Abgaben Ordnung] enables the Reich Finance Minister to moderate taxes or to make exemptions from them. Examination of the individual case. ,
2. The Law of 1 July 1933 (Reichgesetzblatt, Reich Law Bulletin-1 page 323) provides for tax reductions for replacement procurements : Procurement costs of machines may be deducted from the profits.
3. The Law of 15 July 1933 (Reich Law Bulletin) page 491; paragraph 1 provides for tax reduction for repairs in and additions to plant buildings. 10% of these expenditures may be deducted from taxes.
4. Paragraph 3 of the same law authorizes the Reich Finance Minister to grant tax exemptions and reductions.
REICH ECONOMY MINISTRY.
Ministry Counsellor Godlewski:
Starts his report with general statements. At the beginning
EC—404
of the work. A new field. The question of whether to pick up where the war economy of 1918 left off or to start from scratch was in view of the changed circumstances, decided in favor of the second alternative. Since the time limit is set for 1 October 1934, the work is divided in three parts:
1. Statistics on requirements and the possibility to cover it.
2. Draft of plans for filling supply gaps and legal preparations.
3. Preparations for setting up an organization.
The foreign political situation forces us to deviate from the plan and out of the three parts to give preference to the most necessary measures, which can be taken before 1 April 1934. Then the first goal will be followed (on 1 October 1934) by the distant goal, which will have to be:
To provide about 240,000 plants with mobilization orders and a mobilization calendar; to accomplish this work that will take years is necessary. .
Regierungsrat Dr. Barth: Takes over in answering the questions.
Question la: Status of preparations of organizational measures for the conduct of war economy in its preparatory peace activities?
Answer: Present organization for planning and management of the work:
a. On the highest level: Beside the general review office and the groups for raw material, fuel, finished goods, technical matters, and foreign trade, corresponding committees are to be set up which should be in close touch with the Army Arms Office.
Sub-committees for statistics, prices and skilled workers. Classification of skilled workers who hold key positions is important. The money economy will be regulated with the Reich Finance Ministry and the Reichsbank. The Reichsbank has appointed a full-time administrator. In the Reich Economy Ministry full time assistants to experienced department workers have been appointed, and an increase in their number has been prepared.
b. In the local organization: Solution for the time being: Trade inspectors of the provinces [Laender] are temporarily at the disposal of the Reich Economy Ministry. Final solution: 14 full-time department workers with eight Prussian Provincial Prefects and six Reich Governors or State Governments (landesregierungen). Details have to be worked out. Funds for this purpose have been requested in the budget for 1934-35.
Question 17b: Status of organizational measures for the con-EC-404
duct of war economy i/n view of a surprisng "A" case, occurring before the conclusion of the planned preparations.
Answer: A plan for further extension has been drafted:
a. Enlargement of the Reich Economy Ministry.
b. Twenty-three War Economy Offices (attached to fourteen Prussian Provincial Prefects and Reich Governors).
Directors: People from the Reich Economy Ministry, from Chambers of Commerce and foreign trade agencies who have to be provided with far reaching power.
c. Establishment of War Economy Offices in countries and country-free cities.
d. Professionals, public-law management agencies at main headquarters. The carrying-out of measures directed at saving of individual raw materials, etc., by assignment, ear-marking and settlement.
The ability to function is only a question of people and space. On paper the organization is set up, it can be ready by 1 May.
Ministry Counsellor Godlewski: To this end assignment of the persons concerned is necessary. Fundamental decision of the question whether this seems possible from the viewpoint of foreign policy.
Lt. Col. Stud: Connection with industry has to be taken up. Proposal: Nothing in writing, the military purpose may not be traceable. .
Lt. General Beck: Promises a decision.
Question 2. Status of preparation for legislative measures involved in surprisingly occurring "A" case.
Answer 1 : A decree concerning ear-marking and seizure of 38 raw materials, is ready. Others will follow.
2. As to finished products, data for the regulation of consumption (ration coupon system) will probably be ready by the middle of February. Their transformation into a decree is set by 1 April.
3. Decrees with the purpose of facilitating importation and rendering exportation more difficult are ready for 38 raw materials.
4. The price examination decree is ready.
5. The authorization law for the Reich Economy Minister is prepared. Publication of the "War Services Law" by the Reichswehr Ministry is urgent !
Lt. Col. Stud: Supports the proposal and deems it necessary to let go into effect the parts applicable in peace-time.
Lt. General Beck: A draft of the War Services Law will be forwarded to the Reich Ministry in the beginning of February.