Letter to Bormann on the liquidation of public companies supervised by Rosenberg's ministry, including the company that collected eastern agricultural products for Germany and the military

DRMfdbO.
II 1 c 1183/44g.
Copies for the Political Main Staff Str. 19/10 Q 19/x: 20/10 Dr. Wetzelz.k W 21/10
Pi P2
with request for acknowledgment, Dr. Kinkelein n.r.
Z.d. A. Str. 31/10 Pencilled Notes Berlin, 17 October 1944
Copy
SECRET
To: The Chief of the Party Chancellery Reich Leader Martin Bormann
Berlin W 8 Wilhelmstr. 63/64
[Stamp]
Political Main Staff Journal No. P1011 a/44g Received 18 Oct. 1944 end.
Subject: Actions against civilians in rear echelons.
Your circular No. 309/44 of 9 Oct. 1944.
Dear Party comrade Bormann:—
In order to prevent difficulties and delay—which is of course not desired by you—in the liquidation of the companies under my supervision, I have today dispatched the following telegram to the Gau Leaders because of the particular urgency:
In order not to delay the liquidation of companies under my supervision, I beg to point out that the companies concerned are
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not private firms but business enterprises of the Reich so that also actions with regard to them just as with regard to government offices are reserved to the highest authorities of the Reich. I supervise the following companies:
(a) Zentralhandelsgesselschaft Ost fuer landwirtschaftlichen Absatz und Bedarf m.b.H. (ZO). (Central Trading Company East for Agricultural Marketing and Requirements Limited)
(b) Landbewirtschaftungsgessellschaft Ostlund und Ukraine (Agricultural Development Company Eastern Territories and Ukraine)
(c) Beschaffungsgessellschaft Ost m.b.H.
(Supply Company East Limited)
(d) Pharm.—Ost G.m.b.H.
(Pharmaceutics—East Company Limited)
The following banks under my supervision are also not private firms:
(e) Zentralnotenbank Ukraine (Central Exchange Bank Ukraine)
(/) Notenbank Ostland
(Exchange Bank Eastern Territories)
(g) Zentralwirtsehaftsbank Ukraine (Central Commercial Bank Ukraine)
(h) Verband der Wirtschaftsbanken in der Ukraine. (Association of Commercial Banks in the Ukraine)
(i) Gemeinschaftsbank Ostland und Weissruthenien. (Cooperative Bank Eastern Territories and White Ru-thenia)
The liquidation of these companies and banks has been discussed with the Reich Plenipotentiary for total war effort and will be brought to a close not later than by the end of this year. Assets suitable for restitution of the companies have already been earmarked for the armed forces and war economy. Therefore, any intervention with regard to stocks and personnel does not only impede the liquidation of business which is inevitably necessary but also delays the supply of goods to the armed forces and war industry. For this reason I beg, to refrain from any intervention.
The Chief of the Party Chancellory has a copy hereof.
Enclosed I am sending you a copy of my letter of today to the Reich Plenipotentiary for total war effort from which you will note that the liquidation of the companies under my supervision has been agreed upon with the Reich Plenipotentiary and will be concluded at a relatively close date considering the vast operations which are indispensable for the liquidation in the interest of an orderly war economy. Restored property not yet surrendered has already been earmarked for the armed forces and war economy, so that any delay of the liquidation or perhaps even independent confiscation of the property by the Gau Leaders would impair or destroy an organized plan, something that should not be done
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without a compelling reason in the interest of war economy. In order to give you an idea of the past and present problems of these companies, I am attaching enclosed a corresponding survey.
I beg you to acknowledge receipt of the telegram to the Gau Leaders.
Finally, I want to point out also that in my mind it is not correct to simply order the Gau Leaders under the heading "actions against civilians in rear echelons" to press the speeding up of the liquidation of offices and establishments which have been brought back from the occupied territories. Without doubt cases have occurred where such pressure was warranted by all means. On the other hand, it has been proven that, for instance, thousands of decent men and women as well as firms, who have done their duty under the most difficult conditions there, have been brought back from the occupied territories and have recognized the need of the hour immediately, but can simply not complete their work still necessary for the liquidation at present from one day to the other. As far as the Eastern territories are concerned, the above applies to the majority of the people assigned, so that I am obliged to regret that you also associate these people with the most ill-reputed term of rear-echelon.
Heil Hitler Yours
Signed: A Rosenberg
SECRET
(1). Zentmlhandelsgessellschaft Ost fuer landwirtschaftlichen Absatz und Bodarf m.b.H. (Z.O.). (Central Trading Company East for Agricultural Marketing and Requirements Limited).
The following has been the mission of the Z.O. as a monopoly company for the Eastern Territories :
(a) Collection of all agricultural products as well as commercial marketing and transportation thereof. (Delivery to armed forces and the Reich),
(b) Trusteeship of enterprises dealing with food supplies,
(c) Providing enterprises dealing with food supplies with special equipment, supplying the agriculture with means of production and the rural population with commodities (premium goods).
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The following is the present mission of the Z.O. :
(aa) Winding up of transactions relative to commodities and finances, particularly utilization of evacuated goods brought back from the Eastern Territories and goods which did not come into use there any more,
(bb) Collection of goods brought back from the agriculture and food industry of other occupied territories (General Government West),
(cc) Remaining current business,
(a) Fulfillment of the original assignments in the remainder of the Eastern Territories,
(b) Inter-territorial exchange of machines for the agriculture as well as for the dairy industry and inter-territorial exchange of seeds according to directives of the Plenipotentiary for the Four Year Plan—business section food.
The actual significance of the Z.O. and the volume of its transactions can be seen from the following:
(1) 30 offices with 200 agencies were subordinated to each main office for the Eastern Territories, the Central District and the Ukraine.
(2) 11 subsidiary companies of the food industry with 130 branches were founded in the Ukraine.
(3) The Z.O. including its subsidiary companies employed at the peak of its business during the summer of 1943 about 7,000 German party members of the Reich and in addition has set up about 250 German firms of the Reich.
(4) The total turn-over of the Z.O. amounted to about 5.6 milliard Reichsmark, from its foundation until the 31st of March 1944.
(5) During this period, the Z.O. together with its subsidiaries has collected:
Grain .................
Meat and meat products.
Linseed ...............
Butter ................
Sugar .................
Fodder ................
9.200.000 tons
622.000 tons
950.000 tons
208.000 tons
400.000 tons
2.500.000 tons
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Potatoes
Seeds
3,200,000 tons 141,000 tons
Other agricultural products.. 1,200,000 tons
Eggs
1,075 million eggs
The following was required for transportation:
1,418,000 railroad box cars and 472,000 tons of boat shipping space.
(6) A total of 32,900 box cars of evacuated goods has
been brought back by the Z.O. of which 22,400 are grain, linseed and other seeds, etc.,
9,000 are agricultural machines, other machines, etc., and
1,500 are goods for supply and consumption.
While the utilization of the evacuated agricultural products has been completed in the main part in spite of all difficulties by means of transfer to the Reich Agencies, it has not been possible to effect the utilization of the remaining goods (machines, furniture, supply goods etc.) in the same time and with as little friction. The utilization of these goods is being effected with the cooperation of the Commissioner for utilization of goods, Dr. Kemna, for the Reich Minister of Economy and the Reich Minister for Armament and War Production. Moreover, part of these goods which are composed of thousands of types of different goods must first be overhauled and repaired.
The number of personnel of the Z.O. and its subsidiary companies has already been reduced from 7,000 to 681 employees, exclusive of 50 workers who are still working in the Eastern Territories.
(2). Landbewirtschaftungsgessellschaft Ukraine. (Agricultural Development Company, Ukraine)
The Landbewirtschaftungsgessellschaft Ukraine (LBGU) had the following missions (Figures according to status of 1st July 1943) :
(a) Supervisory management of almost 31,000 collective farms and agricultural cooperatives [former Kol-hoze] with 1.7 million farms, of almost 540,000 individual farms with an area used for cultivation of maximum 38 million hektars (93.9 million acres) —
24.5 million hectars (60.5 million acres) during summer 1943—,
(b) Managing trusteeship of 1875 state-owned estates with an area used for agriculture of 2.8 million hectars (6.9 million acres),
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(c) Managing trusteeship of 72 breeding stations with an area of 124,000 hectars (306,400 acres), seed reproducing areas of 424,000 hectars (1,047,700 acres),
Trustee management of 17 offices for distribution of seeds of 270 seed distribution points and of 619 seed depots with a seed capacity of 192,000 tons.
(d) Managing trusteeship of 900 machine and tractor stations (MTS) with 49,600 tractors.
The LBGU maintained 1 central business office, 6 district offices (with 5 branch offices)» 114 regional offices, 431 county offices, 2,870 base offices and 400 supervisory bodies.
The LBGU has already completed the liquidation of the following affairs:
(1) Management of the general enterprises (see above under a),
(2) Management of the state-owned estates (see above under 6),
(3) Sheep-breeders association Ukraine,
(4) Financial liquidation (balance-sheet of liquidation as of 1st July 1944 will be completed on 20th Oct. 1944).
At present the LBGU still attends to the following matters:
(aa) Utilization of still remaining 5,400 tons of highly valuable, evacuated seeds (a total of 98,000 tons have been brought back), most of which will be transferred to the Landbau-Gesellschaft m.b.H. (Land Development Company Limited) founded recently by the Commissioner for the Four Year Plan,—termination by the end of this year—,
(66) Utilization of the rolling stock, parts of equipment and similar matters confiscated by the armed forces.
(cc) Realization of the MTS evacuation depots and work shops. The personnel used in connection with this (90 civilians, 34 military personnel) occupied mainly with new problems regarding the employment of agricultural machines and the repair thereof. The transfer of these machines to the above mentioned Landbau-Gesellschaft has been projected in the near future.
The number of personnel employed by the LBGU has been reduced from 4,500 German and Dutch workers as of 30 June 1943 to 410 as of 1st Oct. 1944.
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Of these latter 248 were made available for other important war jobs, especially in the general government, by way of orders and leaves from present jobs. 28 employees are assigned to supervise 50,000 Ukrainian workers in key-positions and skilled laborers of the LBGU. Another 90, as mentioned, are employed for the problems of utilizing agricultural machines and for the repair thereof (see above cc). Consequently, only 44 persons are employed to wind up the remaining affairs.
(8). Beschaffungsgesellschaft Ost m.b.H. (BGO). (Supply Company East Limited)
The BGO has been founded with the purpose to procure machines and other investment goods for the economy of the Eastern Territories as well as to perform special assignments.
Today, it has the following assignments:
(a.) Winding-up of concluded business-contracts (50 mill. Reichsmark of a total procurement in the value of 115 mill. Reichsmark), according to which deliveries will be made within the next 9 months;
(5) Procurement of machine tools and wood-working machines by order of the Reich Minister for Armament and War production.
(c) Collection and utilization at economic assets evacuated from the Eastern Territories and the General Government whereby the BGO acts as an executive company for Dr. Kemna, the Commissioner for the utilization of goods for the Reich Minister for Economy and the Reich Minister for Armament and War-production (see Annex (1) and (2)).
(d) Liquidation of the Steine und Erden Ost G.m.b.H. (Stone and Soil East Company Limited).
To (a): According to orders by the Reich Minister for Armament and War production the machines which are being delivered in agreement with current business contracts are being transferred particularly to German industries damaged by bombing. The other deliveries are being disposed of in accordance with orders of the OKH/Chief H Ruest u.BdH. (Supreme Command Army) as well as of the economic administrative agencies and of the Planning Commissioners.
To (b): This procurement is also done for the German industry.
To (c): The execution of these assignments is in full swing, and the work connected with it is steadily increasing. So far the BGO has collected about 1,000 carloads of evacuated goods.
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One part of these is directed by the B.G.O. to agencies charged with their utilization which operate under its management. Another part—particularly machines and investment goods—are stored in own depots, repaired, catalogued and catalogue submitted to the Office of Armament Supplies as well as to Special Agencies [Sonderringe—Committees set up by Speer to organize the production of component parts of the armament industry] and apportioned according to their directions to the Armament Industry.
The number of personnel employed at present by the BGO is 118 employees of whom 55 are male employees.
(4). Pharm-Ost G.m.b.H. (Pharmaceutics—East Company Limited).
The company had the assignment to supply the Eastern Territories with medicines and other drugs within the range of human and veterinary medicines as well as with all equipment for medical and veterinary requirements, hospital requirements, etc.
Apart from supplying the remainder of the Eastern Territories, the company's main assignment at present is essentially to direct the evacuated goods to other consumers, the armed forces in particular, its stocks and those goods which are to be delivered according to business contracts already concluded, while observing the necessary financial liquidation procedure.