Documents on the Nazi-occupied Netherlands 1940-1945

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Documents on the Nazi-occupied Netherlands 1940-1945

Post by David Thompson » 10 Nov 2004 21:27

Document 997-PS, Report about the situation and developments in the occupied territories of the Netherlands, in Nazi Conspiracy and Aggression. Volume III: US Government Printing Office, District of Columbia: 1947. pp. 641-656.

The Reich Minister and Chief of the Reich Chancellery
RK 504B top secret
Berlin W 8 Voss-strasse 6 8/2/1940 [stamp] at present Headquarters of the Fuehrer
all mail is to be sent to the Berlin address

[stamp] Rosenberg office Rec. No. 2133, 5 August 1940

To Reichsleiter Rosenberg Foreign political office of the NSDAP
W 35 Margarethenstrasse 17

Re: Report about Holland

Dear Party Member Rosenberg:

I have presented the report of July 19 of this year, given to me by Stabsleiter Schickedanz on July 23 of this year, to the Fuehrer, together with the report delivered by Reich Commissioner Dr Seyss-Inquart about the period from 29 May-19 July 1940.

I am enclosing a copy of this last-mentioned report for your confidential information and submit an opinion on it.

Heil Hitler
Yours very respectfully
Signed: Dr. Lammers

1. Report about the situation and developments in the occupied territories of the Netherlands

Period covered by this report: 29 May -19 July 1940.

Commission and task.

With the nomination as Reich Commissioner the commission is given in serving the interests of the Reich to secure public order and public life and the task is connected to bind the Netherlands, which have to remain independent for the purpose of the preservation of Dutch Indies territory, as much as possible to the Reich economically, apart from military security measures.

This task is to be solved if we succeed in bringing about a political attitude which would make it possible for the economic ties of the Netherlands to the Reich to appear to be the emanation of the will of the Dutch people.

It will not be possible in every individual case to combine fulfillment of the given commission with the solution of the assigned task, for the interest of the occupation power demands the extensive suppression of all possible public activities, while in order to create and lead a formation of a political will it would be necessary to grant such freedoms as would for the Dutch, make the final result their own decision.

[Page 2]


The situation at the time the decree of the Fuehrer went into effect (29 May 1940) is characterized by the position of the Commander in Chief of the Dutch Army and Navy (General Winkelmann). He exercised all power in the administration of the country, under the powers he had received in consideration of the state of siege and beyond that from the government and the queen who had fled, and he was considered by the people as a sort of viceroy. He issued orders, the Dutch Secretaries General (offices corresponding to our State Secretaries) executed their orders in the name of Winkelmann within administrative machinery unchanged in personnel and functioning perfectly.

Wherever Winkelmann appeared in public he received ovations.

The Dutch Army was in only slightly reduced mobilization strength under the command of their own officers (Winkelmann's Staff) in the barracks and camps. The occupation force was not seen often.

The behavior of the Dutch population -- glad that the war is over, pleasantly surprised by the conduct of the German troops, though at first the circles hostile to the Germans kept themselves
reserved -- concealed the real attitude of the Dutch toward the Germans. The Dutch population for many years, especially since 1933, were stirred up by the emigrants, who were tolerated here as in no other country, against the Reich and National Socialism. The ability of forming their own political opinion is limited for the majority. Politics and administration are in the hands of a small group (ruling families), whose ideas and attitude are liberal and influenced materially and ideologically by the west.

The real wages of the employed population are generally higher than in the Reich. About 500000 unemployed from about 2 million people capable of working in non-independent industry, trade, or business are being carried along with unemployment compensation up to 70% of simple wages, thanks to the riches of the Dutch Indies possessions, just as agriculture, struggling with sales and price difficulties, is supported almost entirely by state subsidies.

The Dutch people are caught in political stagnation as well as in economic immobility. In spite of a good external impression (racial appearance, cleanliness of the buildings and gardens, etc.) one can observe extensive biological and even moral damage, such as unexpected uncleanliness among the unemployed and the country population in the Calvinistic districts, poor physical constitution, exclusive interest in material matters, and so on. The people are widely split confessionally and within the confessional groups bound and influenced by all kinds of activities (from political organizations to chess clubs).

The Royal House of Orange lives on the prestige won in the battles for freedom and is considered by the group oriented materially as in the west (big businessmen, financiers, industrialists, higher officials, and court nobility) as a guarantee for their political predominance and economic positions. Additional motives, based on national conviction, for bourgeois the devotion of the Dutch people to the royal family which is more a matter of habit, cannot be found, unless they think by clinging to the royal family to banish the fear of being overwhelmed by the Reich.

There was no real opposition against the system among the representative bodies of the parliament. In the second chamber there were 4 NSB men among 100 Deputies; Fascist and National Socialist ideas, especially the latter -- are tabooed, are considered evidence of being uneducated, and are now branded as the sentiments of traitors. There are concrete indications that NSB were in the-uniform of Dutch soldiers intervened in support of the invading troops of the Reich.

In Dutch political life there are almost no personalities of any importance. Somewhat outstanding from the average is the 71 year old Colijnal -- though his basic character is domineering and energetic, he is completely bound up with western-liberal views and as a decided Calvinist he cannot be won for any National Socialist ideas. Noteworthy is his desire for importance, which might induce him to make a political deal with the occupation power, in which he might be conceited enough to think that he could outwit us and keep a distance from the Reich with the help of the House of Orange.

The system parties -- that is, the Catholic State Party, the Christian People's Party (reformed) the Anti-Revolutionists (Calvinists, descendants of the revolutionary Gueux) the Social Democrats, the Democrats, etc., were entirely undisturbed as far as their party organizations, trade unions, press, etc., were concerned, and their activities were only partly restricted by the state of seige. Apart from a strong horror propaganda against the NSB people, the political factors and the greater part of the population were just biding their time.

The Rightist Parties, especially the NSB, were numerically an unimportant minority, against whom as a matter of course an arrogant rejection prevailed among the intellectuals, the capitalists, and also among the greater part of the officers' corps. This attitude, strengthened by the charge of treason, was carried over to the rest of the population. Of leading men among the Rightists the following are to be mentioned within the framework of the NSB:

Mussert: A liberal nationalist attempting to use Fascist methods, who is in the end afraid of the greater German Reich. His political qualities are not as great as those of an average Gauleiter in the Reich. In the Netherlands he plays a not inconsiderable role with them.

Rost van Tonningen: Ideologically perfectly adequate, adjusted to the Germanic idea and National Socialism, a temperamental and effective speaker yearning for activity, does not find his strength in himself but tries to get support and steadiness from third persons.

Count Ansembourg: No outspoken personality, positively valuable in spite of his obligation of creed (Catholic), he is more a tactician and diplomatic mediator.

Geikerken: The representative of Mussert, with strong Walloon mixture, he is certainly a determined opponent of the system with reservations toward the Greater German Reich.

Woudenberg: Representing labor in the NSB, he is the type of a union man without special initiative but with common sense and confidence-inspiring simplicity.

Some younger men, such as Feldmeyer, Zondervan, and others, areeven according to the standards of the party within the Reichtypes of absolutely good leaders of the rank and file. Special attention is due Arnold Meijer, the leader of the Black Front, a Catholic Fascist group, who has his followers in the southern parts, Brabant and Limburg, is without doubt bound to Catholicism but strictly opposed to the liberal democratic course and is above all opposed to the political influence of the representatives of the Protestant North (Colijn, etc.).

The economic situation was nowhere threatening; supplies of all kinds available in abundance, only the traffic has been largely interrupted by the blowing up of bridges and the consequent shifting of the canals, which handle 70% of the total traffic; sea traffic has been stopped entirely. The agricultural improvement economy, dependent on the import of disproportionately large quantities of fodder, possesses supplies sufficient until the gathering of the net harvest.

It is the almost unanimous opinion of the Dutch that they were unjustly attacked by the Germans. The charges of violation of neutrality as reported by the communique of the High Command of the Armed Forces are not known to the population or if known are rejected as justification. A certain impression is made by pointing out that on the soil of the Netherlands, with the cooperation of high Dutch officials, an attack on the life of the Fuehrer was prepared. It is also admitted that it was at least unwise and probably unjust, too, that the emigrants from the Reich in the Netherlands and the Dutch press were allowed to give news to their fury against the Reich and the National Socialist in such an unqualified form.

In view of this state of affairs it was necessary first to remove Winkelmann's influence. This was done by expressly advising the Secretaries General that they now have to accept orders only from the Reich commissioner, which they accepted explicitly. The institution of the Secretaries General as well as the persons themselves were retained, since it had to be considered improbable in case of their resignation to find Dutchmen -- among the Rightists there are almost no suitable persons at all -- who would have taken over the administration. It seemed politically necessary however, that some measures, especially economic ones but indirectly also police ones, had to be taken, carrying the signatures of the Netherlands Secretaries General, for the
Dutch people. The attempt of one of the Secretaries General to call on Winkelmann as authority -- in the question of the continuation of the work in armament plants for the German Armed Forces was answered with the immediate dismissal of that Secretary General. Winkelmann had to admit in a public declaration that he had only to execute the demobilization under the command of the Commander of the Armed Forces, but that otherwise he had nothing to say. This acknowledgment as well as the fact that he publicly dropped a Secretary General reduced Winkelmann's influence considerably. Finally he could be quietly made a prisoner of war in connection with the known events of June 29.

In order to execute the given commission, an administrative body as small as possible was set up, divided into four working fields of the commissioners-general. The individual specialists of these commissioners-general, as for instance the ones for finance justice, etc., are sitting as liaison men in the respective Dutch ministries. Importance was attached to an immediate and clear distribution of competences and determination of the performance of the work, because of the Dutch people, being very formal and casuistic by nature, need such a determination. This distribution has proved its worth so far, as there has been no friction either within the administrative machinery or with the Dutch authorities for reasons of organization.

Commissioners are provided for the provinces, which have extensive autonomy. We hesitated to create this office, as it was necessary first to investigate conditions. Now it is seen that for this office politically experienced men were needed rather than administration officials. Therefore, through Reich Office Director Schmidt we requested from Reichsleiter Bormann (Hess staff) some men who, almost entirely members of the party, are on their way here and can be put into office in the provinces in a few days.

It was clear that with the occupation of the Netherlands a large number of economic but also police measures had to be taken, the first ones of which had the purpose of reducing the consumption of the population in order to get supplies for the Reich, on the one hand, and to secure a just distribution of the remaining supplies, on the other hand. In consideration of the assigned task, we had to endeavor to see to it that all these measures carried the signature of Dutchmen. The Reich Commissioner therefore authorized the Secretaries-General to take all the necessary measures by means of ordinances.

As a matter of fact, up to today almost all orders concerning the seizure of supplies and their distribution to the population and decrees about restrictions in the formation of public opinion have been issued but also agreements concerning the transport of extraordinarily large supplies to the Reich have been made, all of which bear the signatures of the Dutch Secretaries General or the competent economic leaders, so that all of these measures have the character of being voluntary. It should be mentioned in this connection that the Secretaries General were told in the first conversation that loyal cooperation was expected of them, but it would be their privilege to resign if something should be ordered which they felt they could not endorse. Up to date none of the Secretaries General has made use of this privilege, so that one may reasonably conclude that they have complied with all requests of their own free will.

Almost the entire seizure and distribution of food supplies and textiles have been executed, at least all the respective orders have been issued and are being executed.

A series of instructions concerning-the reorientation of agriculture have been issued and are being executed; essentially it is a question of seeing to it that the available fodder is used in such a way that as large a stock as possible of horned cattle is carried over into the next farming period, about 80 at the expense of the over-dimensional stock of chickens and hogs. Rules and restrictions have been introduced in the organization of traffic and the principles for the regulation of gasoline as in the Reich were carried out here.

Restricting the right to quit jobs as well as to cancel leases have been issued in order to check the liberal-capitalistic customs of the Dutch employers and to avoid unrest. In the same way, the period for repayment of debts have been extended under certain conditions.

Ordinances concerning news service, radio, etc., prohibit listening to foreign radio stations and introduce all other restrictions necessary in this field for defense reasons. The ordinance about registration and control of enemy property as well as about confiscation of the property of persons who act hostile to the Reich and to Germans were in this case issued in the name of the Reich commissioner. On the basis of this ordinance an administrator for the property of the royal family has already been appointed.

The supplies of raw materials have been seized and, with the consent of the General Field Marshal, distributed according to this system: the Dutch keep enough raw materials to maintain their economy for half a year, whereby they receive the same distribution quotas as in the Reich. The same principle of equal treatment is being used in the supply of food, etc. This enabled us to secure considerable supplies of raw materials for the Reich, as for instance 70000 tons of industrial fats, which is about half of the amount which the Reich lacks.

The bank moratorium could be canceled, bank deposits are increasing, the stock exchange has been reopened to a limited extent. Bills concerning the control of foreign currencies have been introduced according to the standards in the Reich

Finally it was achieved that the Dutch state makes available in sufficient quantities all means needed by the Reich, including the German administration so that these expenses do not burden the Reich budget in any way.

A sum of guilders has been liquidated to redeem the fiduciary monetary tender to the amount of about 36 million, further 100 million for the purposes of the occupation army, especially the extension of the airports; further 50 million for raising the raw materials to be shipped to the Reich, insofar as they are not booty; further for unrestricted transfer to guarantee the remittance of the savings of the Dutch workers brought into the Reich to their families, etc. Finally the rate of exchange of the fiduciary monetary tender, set at first by the army high command in the proportion of 1 guilder to 1.50 Reichsmark, has been reduced to the correct proportion of 1 guilder to 1.33 RM.

Above all, however, it was possible to get the consent of the president of the bank of the Netherlands, Trip, to a measure suggested by Commissioner General Fischboeck and approved by the General Field Marshal, namely the unrestricted mutual obligation of accepting each other's currencies, that means that the Bank of the Netherlands is bound to take over any amount of Marks offered to it by the Reich Bank and in return to make available Dutch guilders at the rate of 1.33, that is, 1 RM is 75 cents. Only the Reich bank has control over this, not the Bank of the Netherlands, which will be notified only about the individual transactions. This ruling goes far beyond all pertinent rulings made hitherto with the political economies of neighboring countries, including the Protectorate, and actually represents the first step toward a currency union.

In consideration of this significance of the agreements, which already touches the independence of the Dutch State, it is of special weight that the president of the Bank, Trip, who is unusually well-known in western banking and financial circles, signed this agreement of his own free will in the above sense.

Furthermore, military jurisdiction was introduced, and at present German criminal jurisdiction is being set up; for special cases not only the Special Court but also SS and Police jurisdiction have been provided for as substitutes for court-martial jurisdiction, which was not introduced. Subject to German criminal jurisdiction are: all citizens of the Reich or the Protectorate without restriction and all Dutch citizens and aliens in cases of crimes against the honor and security of the Reich, the Armed Forces, etc.

The experiences with the Dutch officials show that these people, like all Dutchmen, are basically difficult. One has to negotiate with them very much; if they say no, it does not mean definitely no, if they say yes they still think the matter over for a long time, but in the end they will do as one wants them to. Besides, they want someone else to carry the responsibility; since the Dutch still do not really believe that England, which for centuries was the overwhelming power in Europe, is finally eliminated from the continent, in many cases they want a direct order which they then obey, so that one day they will be able to refer to this pressure. In general, however, one cannot complain about the behavior of the officials in the execution of the administration.
One cannot say that the officials are delaying any vital work. For instance, in restoring traffic routes, especially in clearing canals, the respective ministry worked extremely to the purpose and fast. In the fields, however, entirely liberal methods and principles prevail.

The Police itself is much split and is subordinated in the most important parts to the ministry of justice and not to the ministry of the Interior. The special troops, the motorized and mounted units, are relatively good, the Marechaussee, a sort of troop gendamerie, is very good. Among the latter we have already won some agents in the higher ranks which makes probable a further extension in a sense favorable to us.

The Marechaussee will therefore be brought to a correspondingly high standard by selected non-commissioned officers of the army and will be the backbone of the executive.

The dismissal of two mayors (in the Hague and in the provincial capital of Zwolle) had an extraordinary effect. The moment will come when it will be possible to exchange some of the Secretaries General and possibly also other officials, but in any case mayors.

Concerning the right of assembly and association, we introduced the obligation of giving notice. The interdiction comes from the public prosecutors of the court of appeals (Subordination of the Police to the Justice) who are working almost without complaint under the Higher SS and Police Fuehrer. The states-general were eliminated from public representative bodies; the provincial states and the town councils were kept for the time being, but they are under the supervision of the provincial commissioner. Politics in these is not tolerated for the present. The reconstruction of the country-except in Rotterdam, Middelburg, and Rehnen the devastation is not very extensive-was placed in the foreground of a visit to Middelburg the importance of the preservation of historic monuments as an expression of the will for formation of a people has been emphasized, and the social side of such action stressed by raising a fund for reconstruction. In the handling of this reconstruction fund the reactionary spirit of the Dutch administration is especially evident.

It is necessary to give special attention to the reconstruction of Rotterdam. Rotterdam, thanks to its position at the mouth of the Rhine, the possibility for sea-going vessels to sail far inland, and the harbor conditions, which are in every respect favorable, is doubtless a place which disposes of the best natural port facilities in Central Europe, which can even be increased by the completion of the Rhine-Main-Danube Canal, as its sphere of action will reach from Rotterdam to Constanta. With regard to developments in the more distant future one must consider whether one should not exercise influence on the reconstruction of Rotterdam in such a way that the city with this unique opportunity for construction should receive the imprint of a big seaport of the Germanic area. The demobilization of the Dutch Army, which has now finally been accomplished, was carried out without complaints. The officers and men not taken over into other occupations were transferred, with the exception of the higher ranks, to construction service. This is to be the basis for a future Labor Service. It is led by the Dutch Major Breunesse, who has long been in contact with the men of the Reich Labor Service in the Reich
(Mueller-Brandenburg) and has always taken the part of the Reich. The impression this man makes is an excellent one, at present decidedly non-political, as is usual among officers, ideologically all right. It is assumed that within three to six months the present construction service can be liquidated, that is, the men will be inducted into economic operations and there will be a basis for a real Labor Service. The organization is already being built up with the cooperation of the head of the Reich Labor Service, Hierl.

The extremely ramified and numerous Dutch press has not been submitted to a preliminary censorship, as that would have destroyed all press life immediately. By holding press conferences under the supervision of Schmidt the big press is managed well and successfully. The danger of some slips, becoming more and more rare, was accepted in view of the necessity of keeping the press alive. Circulation is falling off, however -- a not unusual phenomenon, which has the advantage, though, that the newspapers get into difficulties and can therefore be folded up or taken out of the hands of the present owners. The NSB press is already completely available, there is a personal influence at the Telegraph and within the next few days the entire SDP. Press is going to be taken over in connection with a corresponding political action which is already underway. The German newspaper has reached a circulation of 30000. About half of the subscribers are Dutch. A quite extensive press front is therefore available.

From the point of view of the occupation power the present development can be considered satisfactory. The supplies for the occupation army are being delivered, the work, etc., is being done in order, and there are almost no cases of sabotage. There is no need at all to fear active resistance by the population. There are, however, signs of rather extensive espionage, at any rate there is contact with England, probably by short-wave radio. In this respect there is close cooperation between the Counter-Intelligence posts of the Armed Forces and the Security Police posts, since it seems necessary to ascertain such cases as soon as possible and to punish them exemplarily (death sentences).

Concerning the political developments in regard to the assigned task, I have the following to say: The Dutch have stepped out of their political reserve. Disregarding the continued or rather increased animosity among the circles which heretofore formed political interest for the Reich is increasing. It is noteworthy in this connection that the former opponents, insofar as they are beginning to change their opinion, want to establish contact not with the N.S.B. but rather directly with the NSDAP. and the Reich. A conversation with Colijn, who thereupon wrote a pamphlet, did much to help overcome the reserve. The main points of this pamphlet are summarized in the statement that in Continental Europe, England has doubtless been eliminated by the Reich and that the Reich will lead this continental Europe. The Netherlands must adjust itself to that fact if they hope, in closest economic cooperation with the Reich, to retain their independence in clinging to the House of Orange. This attitude of Colijn has had a very great effect, as it was the cue for Protestant and especially Calvinist circles to discuss the new situation, whereby Colijn's statement on the importance of the Reich was considered as an authoritative declaration, but his conclusions were subjected to lively criticism. Colijn later in his newspaper (Standard) questioned the correctness of a document of the last White Book. The Standard was thereupon banned for 8 weeks and Colijn got a warning. At the moment he is designated not only by the N.S.B. but also by the group of Arnold Meijers as a worn-out politician who himself has to take the blame for developments, and he is holding back. His importance is not actual but potential.

At the moment many efforts toward concentration are to be noted, which make it their task to appear as partners in a contract with the Reich. The attempt of the system parties to regain influence through Colijn has been, at least for the moment, rejected by the public. His place was taken by a group of the commissioners of the province of Groningen Lindhorst-Homann and of the Catholic politician De Quai. They presented a proclamation to Reichsamtsleiter Schmidt. He refused to authorize it and pointed out that a profession of loyalty to the House of Orange could not be tolerated by the occupation power. This group was confused thereby and lost much of its prestige among the people, which had not been too great, anyway.

Right now a political action against the K.P. (Communist party) and the SDP. (Social Democrat Party) is in progress. The K.P. does not exercise any activity, the SDP. has its main support in the free trade unions. The heads of these free unions have now been dismissed and the above-mentioned Woudenberg has been appointed provisional head. This reorganization took place -- as far as we can see without complaint and the former functionaries offered their cooperation willingly. In direct connection with this action the political organizations of the Communist and Social Democrat parties are being subordinated to Rost Van Tonningen as liquidation commissioner, who has orders to liquidate the K.P. entirely and to transfer its funds to the assets of the SDP, which are administered by him. By taking over the leadership of the free unions and the SDP organizations, especially its press, we gained a broad basis political influence on the Dutch people, for this party represented 20-22% of the Dutch population.

Arrangements have been made with the N.S.B., according to which the organizations corresponding to the SA and the SS, as well as the youth organization will be built up. It will be of special importance that through the disciplined marching of these organizations an appropriate impression is made, especially on the working classes but also on the rest of the Dutch population. Aside from these arrangements in the political field we have now begun gathering together pro-German and obliging circles in the field of economy especially agriculture, culture, art, and science, first in a loose social form in order to create a circle of friends of the new Germany or the new Europe, who will gradually become the carriers of opinion and will in the corresponding fields. The first step has been taken successfully in the field of the press. Under the leadership of Prof. De Gudewagen a sort of press committee has been formed, to which the right-thinking press people belong. After initial reluctance, today all the journalists of the Netherlands are aspiring to this association, in which the press people hostile in the past toward the Reich are not accepted even if they are considered especially leading.

The attempt is made to establish contact with the Dutch Indies. There are daily radio broadcasts on the regular wavelength, bringing reports from the homeland, even news about individual persons and families, so that we can assume that in time the Dutch people in the Dutch Indies will tune their radios to this wave length.

It can already be said today with some confidence that it is only a question of time until the Dutch people can be won also in their political formation of will for a program of a close connection of the independent Netherlands and the Dutch Indies with the Reich (union of currency and economy). The decision boils down to the question of the monarchy. In that question it has gone so far that some leading people already realize that Queen Wilhelmina is opposed to this development and that Crown Princess Juliana is also rather out of the question on account of her marriage with Biesterfeld. The royalists therefore now speak only of holding to the house of Orange, and individual voices are already heard advocating the appointment of a regent to take care of affairs until the question of the monarchy is ripe for a final decision.

Any manifestations for the Queen or for the House of Orange, which is represented only by Crown Princess Juliana, who is married to Biesterfeld, will no longer be tolerated, with the explanation that the Queen persistently remains in the ranks of the enemy and does not oppose the British air-raids on the Netherlands. From the view point of the occupation power a manifestation for the Queen must be considered in the same light as a manifestation for Churchill, for example. This point of view will be enforced with increasing severity. Since the Queen apparently hopes to be supported by Dutch Indies circles, there is danger that this legitimistic attitude could lead to a break between the Netherlands and the Dutch Indies. The Dutch people show increasing understanding for these arguments, and there is really no longer any doubt that the Dutch, at least in Europe, are ready to renounce the Queen and probably also the crown princess, if the Reich could offer them a guarantee that the Dutch Indies will be kept by the Dutch even against possible endeavors of the United States or Japan.

In this connection the possibility should be discussed of transferring the province of Zeeland to a new territorial formation around Antwerp and the province of Limburg to a new Gau-division. In this regard it must be mentioned that such a transfer at this moment would probably destroy all prospects of a political solution. That is certainly true of Zeeland. The people living here are really of Frisian origin and have nothing in common with the population around Antwerp. In the post-war period of 1918-1920 they were strongly opposed to an incorporation into Belgium. It could even be used as a pressure on the Netherlands to reach a currency and economy union if we demand the cession of Zeeland as the economic passage area for the port of Antwerp. The Dutch people will certainly be ready to agree to a far-reaching economic union if in return they can retain politically the province of Zeeland.


In conclusion it is stated that

1. Order and security are perfectly secured.

2. The administration is at present sufficiently and for the future increasingly under the direction and control of the German authorities.

3. Economy and traffic have been set going and converted to war-conditions, plans for a large-scale transformation to continental economy have been started, the preparation for it is almost universal, the supplies of the country have been conducted into the war economy of the Reich, the financial sources for it have been widely opened up and joined with the management of the Reich, all on the basis of extensive cooperation of the Dutch.

4. The necessity of deviating from the democratic party system is becoming more and more the general opinion. The endeavor to get into a close friendly relationship with the Reich is increasing. That the question of the House of Orange arises in this connection is becoming more and more evident. The fate of the Dutch Indies is more significant, however.

If we succeed in retaining the people belonging to the free trade unions and to the SDP organizations, and if the NSB makes a further progress, one-fourth to one-third of the Dutch people will in well-organized form be going the same road as the Reich, whereas the other groups will be split and undecided. Moreover, the workers and farmers -- the latter, if the worst comes to the worst by the suggestion of the idea of agrarian reform, for almost half of the farmland is divided into small tenant farms -- will only gain from a union with the Reich. The labor service is being used for ideological training, and the intellectual circles are being used in social form as needed. The question, in what way the political opinion which is being formed can be used, remains open. The answer depends partly on the conditions of the moment.


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Post by HaEn » 14 Nov 2004 16:52

Thank you David !. Enlightening. HN.

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Post by David Thompson » 14 Nov 2004 18:00

Thanks, HaEn -- watch for more, as I find, scan, proof and post them.

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Post by David Thompson » 15 Nov 2004 22:30

Document 3613-PS, in Nazi Conspiracy and Aggression, vol. VI, US Government Printing Office, District of Columbia: 1946, pp. 321-322.

[Verordnungsblatt fuer die besetzten niederlaendischen Gebiete] No. 1, June 5, 1940, page 6.

Proclamation of the Reich Commissioner for the Occupied Netherlands Territories to the Netherlands Population,
May 25, 1940

On this day I have assumed supreme governmental authority within the civil domain in the Netherlands.

It is due to the magnanimity of the Fuehrer and the power of the German armed forces that within a few days after the catastrophe brought about by the former leadership of the Netherlands, an order of public life is restored which will interfere with the usual and prevailing state of affairs only to the extent demanded by the special conditions.

As Reich Commissioner I hold supreme governmental authority in the civil domain in the Netherlands territories placed under the protection of German troops, for the purpose of safeguarding public order and public life. I shall take all measures, including those of a legislative nature, which are necessary for the fulfillment of this task. It is my will to leave unimpaired, as far as this is possible, the Netherlands law as heretofore in force, to avail myself


of the Netherlands authorities for the fulfillment of administrative tasks, and to preserve the independence of the judiciary. I expect, however, that all Netherlands judges, officials, and employees presently active in public service will conscientiously comply with my orders directed toward that objective, and that the Netherlands nation will follow this leadership with understanding and self-discipline.

The Netherlands soldiers have fought well in battle. The Netherlands civil population has adopted a satisfactory attitude toward the fighting troops. There is nothing which should prevent us from meeting each other on a plane of mutual respect.

Under their Fuehrer the German people are fighting a decisive battle for their survival or destruction, a struggle which the hatred and envy of their enemies have forced upon them. This struggle compels the German nation to exert all its strength and gives it the right to avail itself of all means within its reach. This compulsion and privilege will also necessarily affect the life of the Netherlands nation and its economy. It will, however, be my concern that the Netherlands nation, akin in blood to the German nation, shall not be subject to living conditions less favorable than those necessitated by the community of fate and the destructive intentions of our enemies at this time.

As Reich Commissioner I have to safeguard the interests of the Reich in the Netherlands territories placed under the protection of the German troops and I shall safeguard them. The Netherlands nation, in fulfilling the duties resulting from the common task, will be able to secure its country and its liberty for the future.

Headquarters of the Fuehrer, May 25, 1940.
Reich Commissioner for the Occupied Dutch Territories.

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Post by David Thompson » 15 Nov 2004 22:39

Document 3588-PS, in Nazi Conspiracy and Aggression, vol. VI, US Government Printing Office, District of Columbia: 1946, pp. 282-287.


[Verordnungsblatt fuer die Besetzten Niederlaendischen Gebiete] No. I, Pages 8-12

Order of the Reich Commissioner for the Occupied Dutch Territories concerning the Exercise of Governmental Authority in the Netherlands, May 29, 1940

By virtue of Section 5 of the decree of the Fuehrer concerning the exercise of governmental authority in the Netherlands of May 18, 1940 (RGBI, I, p. 778), I hereby issue the following order,


which shall remain in force for the duration of the occupation of the Netherlands territories by the German armed forces.

Section 1. (1) To extent required for the fulfillment of his duties, the Reich Commissioner for the occupied Netherlands territories assumes all power, privileges, and rights heretofore vested in the King and the government in accordance with the Constitution and the laws of the Netherlands.

(2) Should the interests of the Greater German Reich or the safeguarding of public order or life in the Netherlands so require, the Reich Commissioner may take appropriate measures, including the issuance of general orders. These orders of the Reich Commissioner shall have the force of laws.

Section 2. (1) The Netherlands law heretofore in force shall remain in force in so far as it is compatible with the occupation and not contrary to the provisions of the decree of the Fuehrer concerning the exercise of governmental functions in the Nether-lands. The general orders of the Commander in Chief of the Army issued for the occupied Netherlands territories shall re-main in force until further notice.

(2) All rules and regulations shall be submitted to the Reich Commissioner before publication. Publication shall not take place if the Reich Commissioner so requests.

(3) The Reich Commissioner hereby reserves the right of delegating the power vested in him by virtue of subsection 2 to the German authorities which are subject to his orders.

Section 3. (1) The Reich Commissioner will enforce his orders through the Netherlands authorities unless the German authorities which are subject to this order take direct action themselves.

(2) The Secretaries General of the Netherlands ministries, shall, within their respective jurisdictions, be responsible to the Reich Commissioner for the orderly supervision and administration of official business. They may, in compliance with subsections 2 and 3 of Section 2, issue rules and regulations implementing Netherlands statutes and orders of the Reich Commissioner.

Section 4. (1) The Reich Commissioner will exercise his authority through general commissioners, who will operate as members of his staff.

(2) The Reich Commissioner will further appoint commissioners for the several provinces. He will also appoint special commissioners for specified areas or purposes as the need may arise.

Section 5. (1) The maintenance of public peace, safety, and order shall be entrusted to the Netherlands police force unless the Reich Commissioner calls on German S.S. or police forces for the


enforcement of his orders. The Netherlands police forces shall be subject to the supervision of the German police force and shall be required to comply with its orders.

(2) The investigation and combating of all activities hostile to the Reich and Germanism shall be the concern of the German police force.

Section 6. (1) The judiciary shall be independent.

(2) Judgments shall be entered in the name of the law.

(3) The Reich Commissioner will determine which judgments are to be submitted for his confirmation before execution may be issued.

(4) The Reich Commissioner will designate by general order the crimes to be tried by special courts and the conditions under which Netherlands citizens are subject to the criminal jurisdiction of the German Army or the German police force, respectively.

Section 7. Within such period as shall be determined by the Reich Commissioner, judges, officials, and employees who hold public office, as well as persons engaged in full-time or part-time teaching in public or private schools and universities, shall make a declaration in lieu of an oath that they will comply conscientiously with the general and other orders of the Reich Commissioner and the German authorities subordinate to him and that they will refrain from any action directed against the German Reich or the German armed forces.

Section 8. All German authorities, agencies, and officials, with the exception of those of the armed forces, shall be subject to the orders of the Reich Commissioner.

Section 9. General orders will be published in the Verordnungsblatt fuer die besetzten niederlaendischen Gebiete, which will be issued in the German and Dutch languages. The German text will be authoritative.

Section 10. This order shall take effect as of the date of publication.

The Hague, May 29, 1940.
Reich Commissioner for the Occupied Dutch Territories


Decree of the Reich Commissioner for the Occupied Netherlands Territories concerning the Organization and Establishment of the Office of the Reich Commissioner, June 3, 1940

By virtue of Section 5 of the decree of the Fuehrer concerning the exercise of governmental authority in the Netherlands of May 18, 1940 (RGB1., I, p. 778), I hereby decree:

Section 1. (1) For the fulfillment of his official duties the Reich Commissioner for the occupied Netherlands territories will act through general commissioners, who are members of his staff and who will head the following sections :

1. General Administration and Judiciary.
2. Public Safety (Superior SS and Police Chief).
3. Finance and Commerce (Economics).
4. Special Matters.

(2) The representative of the Foreign Office and the Custodian for the Netherlands Bank shall be directly subject to the orders of the Reich Commissioner.

(3) The Reich Commissioner will appoint commissioners for the several provinces. He will appoint a special commissioner for specific localities or purposes as the need may arise.

* * * * * * *

Section 3. (1) The general commissioners shall be authorized (within the scope of their official duties) to require information of all and every description from all Netherlands authorities, agencies, and establishments of a public or private character and to give them the necessary instructions for that purpose.

* * * * * * *

Section 4. The official duties of the Commissioner General for Administration and the Judiciary shall embrace all matters relating to:

1. General orders and legislation, constitutional law, and the Official Gazette for the Occupied Dutch Territories.
2. Planning.
3. Civil administration, especially the supervision of municipalities with the exception of municipal police forces.
4. The administration of justice with the exception of the Reich police forces.
5. The furtherance of culture (art, protection of public monuments, science, public education, etc.) as well as matters relating to schools and churches.
6. Public health, and the cultural and social welfare of juveniles.


Section 5. The Superior SS and Police Chief shall command the units of the military SS and the German police forces transferred to the occupied Netherlands territories, supervise the Netherlands central and municipal police forces, and issue to them the necessary orders.

Section 6. The official duties of the Commissioner General of Finance and Commerce shall embrace all matters relating to :

1. The Ministry of Finance.
2. The Ministry of Economics (Commerce).
3. The Ministry of Waterways.
4. The Postal Administration.
5. The Ministry of Public Welfare, with the exception of the matters enumerated in Section 4 (6).

Section 7. The official duties of the Commissioner General for Special Matters shall embrace all issues relating to :

1. The molding of public opinion, and to associations formed for purposes other than private gain.
2. Such duties as may devolve upon him by virtue of special orders of the Reich Commissioner.

Section 8. (1) The official duties of the commissioners for the several provinces, appointed by the Reich Commissioner, shall embrace--with the exception of the maintenance of public safety —all matters pertaining to public administration, economic welfare, and the molding of public opinion within the areas to which they are appointed. They may call, for the fulfillment of their duties, on members of the German police force, in accordance with general rules and regulations issued by the Superior SS and Police Chief.

(2) The Netherlands authorities, agencies, institutions, and establishments of a public and private character, and their officers and agents, shall be required, by virtue of a special order, to re-port to the commissioners appointed by the Reich Commissioner concerning certain matters without being requested to do so in every instance and to inform them about impending administrative action. Such action shall be suspended on request of the commissioner concerned.

Section 9. The authority of special commissioners appointed for specified areas or purposes shall be determined by the duties as-signed to them.

Section 10. (1) The commissioners appointed for the several provinces by the Reich Commissioner shall have the same official residence as the commissioners appointed under Article 141 of the Constitution.


(2) The official residence of the special commissioners will be designated by the Reich Commissioner.

Section 11. The Reich Commissioner alone will establish or abolish German governmental agencies for civil administration and determine their official duties and jurisdiction.

Section 12. This decree shall take effect as of the date of publication.

The Hague, June 3, 1940.
Reich Commissioner for the Occupied Dutch Territories

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Post by David Thompson » 26 Nov 2004 20:26

Document NG-1492, in Trials of War Criminals Before the Nuernberg Military Tribunals Under Control Council Law No. 10. Vol. 13: United States of America v. Ernst von Weizsaecker, et al. (Case 11: 'Ministries Case'). US Government Printing Office, District of Columbia: 1952. pp. 751-752.
Partial Translation of Document NG-1492, Prosecution Exhibit 2575.


Berlin W 8
21 May 1940.

The Reich Minister and Chief of the Reich Chancellery
Rk. 324 B g

With reference to the Fuehrer's decree concerning the governmental powers in the Netherlands of 18 May 1940 (Reich Law Gazette I, p. 778), I hereby, for your confidential information, transmit a further decree of the Fuehrer of 19 May 1940, which is an amendment to the previous decree, authorizing the Plenipotentiary for the Four Year Plan to issue directives to the Reich Work of Commissioner for the Occupied Netherlands within the framework of his tasks.

Signed: Dr. Lammers.

To the Reich Ministers.
Copy of the enclosure. Secret:

By the decree of 18 May 1940, I appointed the Reich Minister Dr. Seyss-Inquart as Reich Commissioner for the Occupied Netherlands. In this capacity he is directly responsible to me and receives his directives and orders from me.

As it is necessary for the German war economy to coordinate the planned program also for those areas which are occupied by German troops, I hereby decree that Field Marshal Goering is also authorized to issue orders to the Reich Commissioner within the framework of his tasks in his capacity as Plenipotentiary for the Four Year Plan.

Any publication of this order is prohibited.

The Fuehrer's Headquarters
19 May 1940
The Fuehrer
Signed: Adolf Hitler.

Seal: Reich Chancellery, Ia 77g/40
[Signed] Dr. Lammers.

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Post by David Thompson » 26 Nov 2004 20:42

Document NG-4317, in Trials of War Criminals Before the Nuernberg Military Tribunals Under Control Council Law No. 10. Vol. 13: United States of America v. Ernst von Weizsaecker, et al. (Case 11: 'Ministries Case') US Government Printing Office, District of Columbia: 1952. pp. 797-798.
Translation of Document NG-4317, Prosecution Exhibit 3770.

Copy to Y 502/1--229 V.

The Reich Marshal of the Greater German Reich
Plenipotentiary for the Four Year Plan
The State Secretary, V.P. 5057 g/5.
Berlin W. 8, Leipzigerstrasse 3.
20 April 1942


Dear Reich Minister!

The Reich Marshal has taken notice with satisfaction of your ruling, under which the Netherlands have to pay, as a contribution to the fight against bolshevism, 50 million Reichsmarks monthly--10 million Reichsmarks of which are to be paid in gold--with retroactive effect from 1 July 1941. The advantages thus gained in a reduction of German debts to the Netherlands is equally as important as the easing up of our gold and foreign currency difficulties which the Reich Marshal has greeted with special appreciation.

I agree--in agreement with the Reich Finance Minister--with your proposal of treating the 500 million Reichsmarks reimbursed last year and the proposed amounts as external occupation costs on the condition that the question of raising the external occupation costs will be reexamined at an appropriate time and a new ruling be made according to political expediency and the ability of the Netherlands to pay at the time.

Right from the beginning, the collaboration of the Netherlands with regard to the reconstruction of the conquered Eastern Territories was on the lines of the policy pursued by the Reich Marshal. His general attitude with regard to this problem may be perceived from his letter of 3 January 1942--V.P. 20 005/41 g--to the Reich Minister for the Occupied Eastern Territories and his note of the same day, and also from his letter of 3 February 1942 V.P. 1497/42 g--to the Reich Minister for the Occupied Eastern Territories, of which I am enclosing one copy each primarily for your personal information. [The enclosures were not part of the document offered in evidence.]

The date and method for the actual employment of Dutch firms and farmers in the East depend on developments in the Occupied territories themselves, of which no final survey can as yet be made. I shall be glad to assist in putting into effect practical proposals which, at the present stage, deal mainly with the employment of agricultural experts, or Dutch firms with Dutch workers, for individual tasks.

Heil Hitler!
[Signed] Koerner.

To the Reich Commissioner for the Occupied Dutch Territories,
Reich Minister Dr. Seyss-Inquart
The Hague
Subject: Occupation costs in the Netherlands. Your letter of 11 March 1942
File note: y 5102/1--216 V.

I submit above copy to you for your information.

Heil Hitler!
[Signed] Koerner.

To the Reich Minister of Finance, Berlin W 8.

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Post by simsalabim » 01 Dec 2004 12:48

Dr. L. de Jong has written about this matter in Dutch in about four volumes. To comment on the posts here would take some matter of time and space.

For starters: It is interesting to compare from the above letter:
The Reich Marshal has taken notice with satisfaction of your ruling, under which the Netherlands have to pay, as a contribution to the fight against bolshevism, 50 million Reichsmarks monthly--10 million Reichsmarks of which are to be paid in gold--with retroactive effect from 1 July 1941. The advantages thus gained in a reduction of German debts to the Netherlands is equally as important as the easing up of our gold and foreign currency difficulties which the Reich Marshal has greeted with special appreciation.


Article 49 of the Hague Convention. (
Art. 49.
If, in addition to the taxes mentioned in the above article, the occupant levies other money contributions in the occupied territory, this shall only be for the needs of the army or of the administration of the territory in question.

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Post by David Thompson » 01 Dec 2004 18:48

The Nazi policy of assessing costs against the occupied countries was one of the bases for the "plunder and spoliation" charges against German officials. For an economic overview of the assessed costs, see:

German costs assessed on occupied countries 1940-44

See also:

The Nazi exploitation of occupied Belgium

I have a number of other German documents on this policy in the Netherlands, which I hope to post soon.

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Post by David Thompson » 18 Jan 2005 19:18

Document ECR-197, from Nazi Conspiracy and Aggression, vol. VII, US Government Printing Office, District of Columbia: 1946, pp. 749-752.

Issued in Berlin on 31 March, in the evening


V Dov 6/8490/41
a. The Oberfinanzpraesidenten (Devisenstellen)
b. The Devisenstelle Vienna.
c. Alle Reichsstellen.

Circular No 13/41/R.St. of 31 March 1941

Subject: Netherlands VI 6: Lifting of the foreign exchange limitations applying to the occupied Netherlands Area.

To restore free payments traffic with the occupied Netherlands areas I specify the following, cancelling the circular orders listed in Appendix I:

I. Lifting of the foreign exchange limitations

1. The limitations and prohibitions of the German foreign exchange law go out of effect as of 1 April 1941 in trade between the Reich area and the Occupied Netherlands Areas, apart from the exceptions listed under Paras IV and V of this Circular. Persons who have their residence, usual dwelling place, legal residence or place of business in the Reich Area (internal persons under foreign exchange Law, No. 5, para. 1) from this time on are subject in trade with the occupied Netherlands Areas only to the foreign exchange limitations applying to internal trade. Persons who have their residence, usual dwelling place, legal residence or place of business in the occupied Netherlands areas, are no longer considered as foreigners in the sense of No. 5, para. 2 of the Foreign Exchange Law; they are no longer subject to the limitations and prohibitions under German foreign exchange regulations which apply to foreigners.

2. "Free Reichsmark deposits" and "free currency deposits" (Ri II 1 to 3) of persons resident in the occupied Netherlands areas on 31 March 1941, continue for the present to exist as such.

3. Securities issued by debtors in the occupied Netherlands Areas are no longer considered under the foreign exchange regulations as foreign securities; such securities are equivalent under foreign exchange law to the internal securities treated in No. 25, Foreign Exchange Law, as a result of the disappearance of the foreign exchange restrictions between the Reich Area and the Oc-



ECR-1 97

cupied Netherlands Areas. Excepted are the certificates issued in the Occupied Netherlands Areas on the basis of foreign securities or certificates of debt, which continue to be considered as foreign securities. The limitations on disposition and procurement of German External Bonds [Auslandsbonds] which have been issued in the Occupied Netherlands Areas, under No. 24, Foreign Exchange Law, no longer apply thereto, insofar as trade between internal persons and in trade with the occupied Netherlands Areas is concerned. The securities mentioned in sentences 1 and 3 of this paragraph are no longer subject to the requirements of reporting and surrender.

4. Means of payment and claims reading in Gulden are equal under foreign exchange law to internal means of payment and claims in internal currency; therefore they too no longer are subject to the requirements of reporting and surrender.

5. In exporting goods to the occupied Netherlands areas a report with an Export Foreign Exchange Declaration [ExportvaIutaerklaerung] is no longer necessary.

II. Future Payments traffic with the Occupied Netherlands Areas

1. On 31 March 1941 the clearing traffic between the German Reich and the Occupied Netherlands Areas ends. The clearing accounts at the German Verrechnungskasse and the Netherlands Clearing Institute will only be carried on for payments traffic between the occupied Netherlands Areas and third countries. As a result of the disappearance of the foreign exchange restrictions payments to the occupied Netherlands Areas no longer require a license under foreign exchange law from 1 April 1941 on. Payments for all types of purposes may be made to the Occupied Netherlands areas. However, internal debtors, before repayment or amortization of obligations arising out of capital traffic, had best request their creditors in what form they desire payment: (by repayment to the Occupied Netherlands Areas or by payment within the German Reich), in consideration of the special Netherlands tax regulations.

* * * *

(Interest payments no longer to Konversionskasse, but may paid directly; law regarding "Abwertungsgewinne" of 23 December 1936 (RGBl I p. 1126) remains in effect for debtors).

* * * * * * *

Furthermore, foreign exchange license is no longer necessary for capital investments in the occupied Netherlands Areas. Capi-



tal investments whose purchase price amounts to more than 100,000 Gulden, however, require a permit from the Reichskommissar, according to the Order of the Reichskommissar for the Occupied Netherlands Areas of 24 March 1941, on the Sale of Enterprises and Factories to Foreigners (Official Gazette for the Occupied Dutch Territory, Issue 12, Number 58).

2. The payments to the Occupied Netherlands Areas may be made in all usual payment ways, for example, through bank transfers, bank clearing systems, payments through the Post Office, etc.

3. Furthermore, from 1 April 1941 the export and import of means of payment of all types and all amounts, therefore particularly Reichsmark and Gulden means of payment, no longer is subject to foreign exchange law restrictions in trade with the occupied Netherlands Areas.

4. Insofar as payments are made to enemies (in the sense of No. 3 of the Order on the Treatment of Enemy Property of 15 January 1940 (RGBl I p. 191) resident in the Occupied Netherlands Areas, the Exceptional Permit required under No. 5, para 2 of the Order of 15 January 1940 is considered as generally granted.

III. Netherlands Foreign Exchange Law

Persons who have their residence or usual dwelling place, legal residence, or place of business in the occupied Netherlands areas, are subject to the Netherlands Foreign Exchange Law (Order of the General Secretaries on the Foreign Exchange Control (Foreign Exchange Law of 26 March 1941)). The limitation and prohibitions of Netherlands foreign exchange law, however, according to the Order of the Reich Commissar for the Occupied Netherlands Areas, of 31 March 1941, do not apply to traffic between the Occupied Netherlands Areas and the German Reich, including the Protectorate of Bohemia and Moravia and the areas in which the German Foreign Exchange Law and Regulations issued thereunder are in force. According to the above Order, furthermore, natural and juridical persons resident in the German Reich including the Protectorate of Bohemia and Moravia, and Areas in which the German Foreign Exchange Law and Regulations issued thereunder are in force are no longer foreigners in the sense of the Netherlands Foreign Exchange Law. Thus free payments traffic exists for payments from the Occupied Netherlands Areas to the German Reich.



IV. Treatment of blocked values of foreigners

The withdrawal of the foreign exchange limitations in trade between the German Reich and the Occupied Netherlands Areas leaves unaffected the limitations and prohibitions to which the capital values of foreigners in the German Reich and in the Occupied Netherlands Areas are subject under German or Netherlands Foreign Exchange Law. Thus the following results for the treatment of capital values of the type specified :

1. Insofar as according to the directives and circulars in force the disposition over internal capital values by foreigners is freely permissible within the country, the free permission remains limited to the interior of the country. Permits to transfer the capital values to the occupied Netherlands Areas, or for investment thereof in Netherlands capital values are in principle not to be granted.

2. Directives and circulars, according to which foreigners may dispose of internal capital values within the country without permits, are not applied to Netherlands capital values owned by foreigners. Permits for valorization of capital values of the type named within the country are to be denied.

V. German-Dutch Agreement on the German Credit Agreement of 1940 and Tradefina Agreement

1. Numbers I and II do not apply for the debtor relationships falling under the German-Dutch Agreement on the German Credit Agreement of 1940. The permission of the German Reichsbank continues to be necessary for each payment and disposition.

2. Numbers I and II, furthermore, do not apply to Tradefina credits, for whose coverage a permit continues to be required under RE 233/35 D.St./103/35 Ue.St.

signed. Dr. Landwehr

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Post by David Thompson » 18 Jan 2005 19:21

Document ECR-195, from Nazi Conspiracy and Aggression, vol. VII, US Government Printing Office, District of Columbia: 1946, p. 748.

Report of the Commissar of the Netherlands Bank, dated 9 May 1941

"The new President of the Netherlands Bank, Mr. Rost van Tonningen, is, in contrast to a large part of the leadership, penetrated in his movements and his official acts by the greater German thought, and convinced of the necessity of the creation of a greater European economic space. This ideological attitude in itself gives him the correct position of financial and monetary policy questions for his country in relation to the greater German economic space. Furthermore it makes easier cooperation with my office, a fact which deserves special mention in consideration of the frequently observed passive conduct of the Netherlands agencies before the entrance into office of the new President. I consider as a fortunate solution the fact that the Reichskommissar for the Occupied Dutch Areas has also entrusted Mr. Rost van Tonningen with the treasury of the Ministry of Finance [Schatzamt des Finanzministeriums]. Mr. Rost van Tonningen took over this office at the end of the month of April. Thus there is a guarantee that the financial and monetary policy of the country will be conducted according to unified points of view."


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Post by David Thompson » 18 Jan 2005 19:24

Document ECR-175, from Nazi Conspiracy and Aggression, vol. VII, US Government Printing Office, District of Columbia: 1946, pp. 732-733.

Amsterdam, 18 May 1941
Subject : Occupation Costs

As has already been stated by telephone, the amount of Occupation costs for the month of March 1941 is hfl. 70 mill. Non-occupation costs for the month of March 1941 is hfl. 23.8. Occupation costs for the month of April 1941 hfl. 117 mill. Occupation costs for the month of May up to 16 May hfl. 116 mill.

The credit placed at the disposal of the Military Commander in the Netherlands by the Dutch Finance Minister amounts to 100 million hfl. per month. On the German side it has been attempted not to exceed this credit. As is shown in our report of 19.3, this has been possible in the past year. In this present year, however, the requirements, mainly for non-occupation costs, have increased greatly.

The values arising from non-occupation costs go to the Homeland; their equivalent is returned to the Military Commander by the Reichshauptkasse. This has previously been done through the German-Dutch clearing. At the time of the elimination of the foreign exchange frontier, a fund of about hfl. 95 million was on



hand, out of these return transfers. As reported already on 19.3, the question arose as to who had a claim on this sum. It was, we have heard, one of the problems which had arisen around the person of the Finance Minister and President of the Note Bank, Mr. Trip, which have now been eliminated through his leaving. Thus the power of disposition of this fund now belongs solely to the Military Commander, who takes advances out of it whenever the monthly credit is not sufficient. The return transfers from the Reichshauptkasse flow to him as before. They go to the account of the Military Commander at the Netherlands Bank in the Hague.

The total amount of occupation costs for the past month is available to us in the Hague on the 15th, the division into occupation costs and non-occupation costs is available only on the 25th. We will be able to give it to you for April at the end of May.

To the Central Administration of the RKK in Brussels.

[two illegible signatures]

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Post by David Thompson » 18 Jan 2005 19:27

Document ECR-194, from Nazi Conspiracy and Aggression, vol. VII, US Government Printing Office, District of Columbia: 1946, pp. 745-747.

The Commissar at the Bank of Netherlands,

Amsterdam, May 27th 41
Central Admin. RKK
May 30th 1941 II Post
KN B. 1187/41
File No. 8499/41 Scho./DV.

Enclosed I transmit the report of my activity for the month of April 1941 for your information.
Per signature

To the Central Admin. RKK, Brussels



Summary II/36 .
Amsterdam, May 28, 1941
Centr. Admin.
May 30th 1941
File No. 8495/41

Report of services rendered by the Netherlands for the German Reich in the field of money and credit during the first year of occupation.

The services rendered by the Netherlands during the first year of occupation consist of two groups. The first group includes services originating in direct occupation costs, with no equivalent German service in return. These are:

1. the Armed Forces credit (reported as guilders credit on 27th inst.).
2. Credit for the Civilian Administration.
3. Taking up of RKK certificates.

As it was impossible to estimate in advance the exact amount of occupation costs, the Netherland State was required to place an unlimited credit at the disposal of the Chief Paymaster of the Military Command in the Netherlands, as shown in our report of the 27th, until June to 1195 Mill. guilders, which had not been fully used as mentioned before.

Concerning the credit for Civilian Administration the amount was reported with * * * Mill Gulden as of May 7th 41.

On the same date a total of 98.9 Mill Gulden RKK notes had been accepted for exchange to the debit of the "Staatskasse."

Besides those current occupation costs the State of Holland was required to pay an additional amount of 500 Mill RM as Contribution for external occupation costs. Herefrom 100 Mill RM had to be paid in gold and 400 Mill RM were transferred from the account of the Clearing Inst. at the German Reichnungskasse to the German "Hauptkasse." Therefore the Netherlands during their 1st year of occupation delivered a total of 1.4 Billion Guilders—apps. 1.8 Billion RM for direct occupation costs.

The second group of services consists of payments indirectly connected with the occupation. They are significant for the fact, that although in Germany payments were made, the Netherlands



government had to advance the guilders at least to the main part, until the end of the war. To satisfy the Dutch exporters, the Netherlands government was required to advance the clearing claims, unless equalized by German shipments. The advance of credit as of April 30th 41 amounted to 218 Mill guilders.

Furthermore, the Bank of the Netherlands currently accepted inner German currency (German bills, coins) with the total as of 15 May 1941, 305.4 Mill Guilders.

It was agreed between the Bank of the Netherlands and the German Reichsbank, to invest the RM deposits in Reichs-treasury certificates free of interest. Until the 15th of May 41, the German Reichsbank purchased 231 Mill RM for the Bank of the Netherlands. This results in a substantial help to the German War financing.

It also has to be mentioned that the Minister of Finances made a 12 year credit of RM 100 Mill. available to the Trede Administration (Geh.Rat Kreutter-Tredefina) out of the clearing deposits.

In addition the Bank of the Netherlands surrendered, based on the foreign currency call-up, a total of almost 100 Mill RM in Goldbars and coins as well as foreign means of payment to the German Reichsbank.

[signature illegible]

To the Central Admin., RKK, Brussels

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Post by David Thompson » 18 Jan 2005 19:29

Document ECR-176, from Nazi Conspiracy and Aggression, vol. VII, US Government Printing Office, District of Columbia: 1946, pp. 733-734.

From : RKK
Amsterdam, 27 May 1941

To : Central Administration of RKK Brussels
Subj : Occupation Costs.

The occupation costs are equivalent to the withdrawals of the Milit. Commander from the "Niederlandischen Bank."

The sums requested till now by the Milit. Commander amounted to a monthly average of 100 Mill fl.

Monthly amounts
July 1940 100 mill. guilders.
August 155 mill. guilders.
Sept. 90 mill. guilders.
Oct 80 mill. guilders.
Nov 90 mill. guilders.
Dec 100 mill. guilders.
Jan. 1941 80 mill. guilders.
Feb 100 mill. guilders.
March 100 mill. guilders.
April 100 mill. guilders.
May 100 mill. guilders.
June 100 mill. guilders.

Total per month 100 Mill. Guilders 1,195 mill. guilders for 42 months average




The amount requested is being credited monthly to the account of the Military Commander at the Niederlandischen Bank and withdrawn by him as needed. Credits having been higher than requirements last year, resulted in a considerable credit balance called Guldencredit. In the current year the requirements have exceeded the credit of 100 Mill hfl.

Jan 103.5 Mill.
Feb 125.5 Mill.
March 93.8 Mill.
April 118.4 Mill.

The amounts exceeding 100 Mill hfl during Jan. and Feb. were taken from the existing balance. During March the occupation costs did not reach 100 Mill hfl. On April 1st the foreign currency frontier [Devisengrenze] was eliminated. Through refunds of non-occupation costs by the Reichshauptkasse a fund of about 95 Mill hfl has been accumulated which should furnish in future, according to the instructions of the OKH, the amounts exceeding the 100 Mill credit. This has happened already during April. Refunds of non-occupation costs will not take place any more.

Requirements exceeding 100 Mill hfl should be taken from 1 (the fund 2.) the Guilders credit balance until both are used up. The first amounts now is 73 Mill hfl, the latter 57 Mill hfl. At the exhaustion of this reserve, amounts exceeding the 100 Mill. credit, should be requested from the "Reichshauptkasse." This should not happen for at least 6 months. It is not intended increase the occupation costs of abt. 100 Mill hfl. since already the request for disproportionally great credits in Aug. 1940, caused strong arguments.

PS: For April occupation costs are 91,1 Mill.
Non-occupation costs are 27,3 Mill.
Total hfl 118,4 Mill.

Enclosure :
118,4 Mill hfl Military use
4,1 Mill hfl Civilian use

100,9 Mill hfl Military use
2,7 Mill hfl Civilian use

occupation costs 67,2 Mill hfl.
Non-occupation costs 33,7 Mill hfl.
[Total] 100,9 Mill hfl.


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Post by David Thompson » 18 Jan 2005 19:32

Document ECR-174, from Nazi Conspiracy and Aggression, vol. VII, US Government Printing Office, District of Columbia: 1946, pp. 726-732.

The Commissar at the Netherlands Bank
Amsterdam, 12 June 1941
Netherlands Bank.
Money and Credit

Subject: Material for May Report to the Fuehrer (Following my report to the Fuehrer of 9 May 1941)

* * * * * * *

The increase in "Foreign Bills" by 179 mill. gulden to 201.9 mill. gulden is exclusively caused by the purchase in the month of this report of German Reich Treasury Certificates, which was made at the expense of the Reichsmark deposit of the Netherlands Bank at the German Reichsbank (Account No. 2038).

The decrease in "Other Assets" by 92.3. mill. gulden to 211.7 mill. gulden is mainly connected with this investment, since the Reichsmark means of payment and deposits which are acquired are booked on the account "other assets" until their conversion into Reich Treasury Certificates. Furthermore, there is included in the decrease in "other assets" the equivalent value of' the prize gold sent on 30 April 1941 to the German Reichsbank, for the account of the Reichshauptkasse, amounting to 19.5 mill. gulden. On the basis of the decision of the Prize Court of Hamburg, of 1 March 1941, the gold previously deposited in my name was taken in as a prize for the German Reich.

* * * * * *

Ever since the introduction of free payments traffic the status of the Netherlands Bank is mainly influenced by the taking-up of Reichsmarks. On 31 March 1941, the day before the introduction of free payments traffic, the Netherlands Bank had a to stock of about 83 mill. RM of Reichsmark credits, on 30 April 1941 of about 213 mill. RM and on 31 May 1941 of about 366 mill. RM. Thus in the two months after the removal of the foreign exchange frontier it has taken up about 283 mill. R



and has placed at the disposal of the favored parties the gulden equivalent, at the rate of RM 132.7 equals florin 100, on the basis of the transfer agreement with the Reichsbank signed on 10 July 1940.

The Reichsmark sums credited to the account of the Netherlands Bank at the Reichsbank in Berlin are, as has already been stated, currently invested in German securities, and mainly in Reich Treasury Certificates. On 31 May 1941 the amount was 273 mill. RM. Through such investments, therefore, the Netherlands Bank contributes to the German financing of the war. For the bank itself the German securities represent first grade liquid investments, as a result of their short terms and rediscount and lombard features. The Note Bank, as the final reserve of liquidity for its country, is duty bound to give consideration to this. It must at any time be in a position to place at the disposal of the economy, in particular, the necessary Reichsmark means of payments to pay for goods imports from the Greater German Reich. It has to satisfy demands for this purpose in large volume, even during the course of the war, since the clearing traffic has been ended, but these will without doubt increase tremendously after the establishment of peaceful conditions in Europe.

Various German agencies have already repeatedly expressed the wish that the Netherlands Bank place at least a part of its Reichsmark credits in long-term form in the German economy. The Netherlands Bank looks upon such wishes favorably, and would itself be happy if it were possible to realize on the Dutch side as well an extensive economic penetration through purchase of participations in German enterprises, above all those which exploit the latest technical achievements. With regard to the necessity of maintaining liquidity, mentioned above, it cannot however undertake to purchase participations of this nature itself, but rather must leave this to the interested economic circles coming into question and limit itself to providing the Reichsmark credits necessary to pay for the participations to such circles, against provision of the gulden equivalent. It is to be expected that requests of this nature will come to the bank as soon as the final German military success has convinced the Dutchman of the necessity of a greater rapprochement to the Greater German economic space.

The Reichsmark means of payment taken up by the Netherlands Bank have until now had little influence on the money circulation. The fears frequently expressed at the time of the elimination of the foreign exchange frontier, that the introduction of free payment traffic would result in a great extension of note cir-



culation and giro liabilities, have till now not been realized. As the following summary shows, the slow increase in money circulation which resulted since the beginning of the occupation has on the whole been higher in the months before the introduction of the free payments traffic than in the months April and May 1941.

Circulation of means of payment (Note Circulation and sight liabilities) [In million guilders.]

on 27 May 1940 1,470.4 -60.
24 June 1,409.7 -60.7
29 July 1,473.1 63.4
26 August 1,485.8 12.7
30 September 1,531.7 45.9
28 October 1,553.5 21.8
25 November 1,622.4 68.9
30 December 1,726.6 104.2
27 January 1941 1,699.4 -27.2
24 February 1,630.6 -68.8
31 March 1,737.8 107.2
28 April 1,784.6 46.8
26 May 1,796.2 11.6

It has been shown that the Reichsmark means of payment exchanged into gulden are only withdrawn in cash or remain in the form of giro deposits at the Note Bank to a small part; by far the largest part rather goes via the cashless transfer traffic into the economy, and finds its resting place in increasing deposits at the banks. The increase in the total purchasing power of the country which is thus caused is siphoned off to the greatest possible extent by taxes and short and long term state loans.

B. Status and development of state finances.

During the month of this report the first year of the occupation came to an end. The development of state finances was largely under the influence of the occupation costs. This is divided, as regards its origins, into the needs of the Armed Forces, the Civil Administration, the advances for clearing in payments and the taking up of RKK certificates and internal German currency.

The Netherlands State has granted the Chief Paymaster at the Military Commander a credit of unlimited size to defray



needs of the Armed Forces, at the expense of which the total requirements of the German Armed Forces in the Netherlands for working capital are covered. The Chief Paymaster keeps separate accounts for the expenditures on pure occupation costs, which are to be borne by the Netherlands State, and non-occupation costs, which are returned by the Reichshauptkasse. In judging the question of which payments are to be considered as occupation costs, the main point of view is whether the products purchased or produced on orders of the Armed Forces in the Netherlands remain in the Netherlands (occupation costs) or leave the Netherlands territory (non-occupation costs).

In the first months the credit was made available by the Military Commander in the Netherlands requesting a certain sum from the Netherlands Finance Minister towards the end of each month for the month following, the amount of which depended on the payment obligations due at the time, and which therefore was subject to fluctuations. In order to preserve the financial economy of the Netherlands from disturbances, the Chief Paymaster at the Military Commander in the Netherlands will demand equal monthly payments of 100 million gulden, in agreement with the Supreme Military Command (OKW), as has already taken place since the beginning of this year, and will leave any unused sums as a deposit on his account. This deposit serves to cover expenditures which exceed the sum of 100 million gulden demanded monthly. Insofar as this reserve does not suffice in the course of the months for this purpose, the deficit will be made available through the Reichshauptkasse.

Although from the military point of view the concept of occupation costs is equivalent to expenditures which serve to satisfy the direct needs of the Armed Forces, from the point of view of state finances there must be included in the sphere of the occupation costs all other appropriations connected with the occupation. However, these are much smaller than the direct needs of the Armed Forces. Such expenditures are the costs of the civil administration, furthermore the credits which the State granted to the Clearing Institute for the purpose of prepayment of the Netherlands export claims up to the time of the removal of the foreign exchange frontier, and finally the cashing of RKK certificates and internal German means of payment.

Credits to the Clearing Institute are still necessary only insofar as the prepayment of export transactions which were made prior to 1 April of this year is concerned. Since the introduction of free payments traffic payment for exports within the Greater



German Reich is made through the accounts of the banks, mainly through the account of the Netherlands Bank, which takes on the exchange into gulden means of payment without further formalities. Insofar as the Clearing Institute requires Reichsmark amounts to equalize debit balances in clearing traffic with third countries, it must procure them from the Netherlands Bank or from other banks.

Since the beginning of the occupation the exchange of RKK certificates was made at the expense of the State Treasury. The same was true for internal German means of payment up to the introduction of free payments traffic. The Netherlands Bank sent them from time to time to the Reichsbank, in the same way as the gold and foreign exchange stocks delivered because of the call-up of foreign exchange, and the Reichsbank transferred to Reichsmark equivalent to the clearing account of the Clearing Institute. In order not to burden the state finances unnecessarily, the Netherlands Bank renounced for the time being the payment of the gulden equivalent. Thus there arose in the course of the months a claim of the Netherlands Bank against the Clearing Institute, i.e., in practice against the State, amounting to million gulden, which appears in the balance sheet of the Netherlands Bank under "Other Assets". Since the removal of the foreign, exchange frontier the Netherlands Bank takes up the internal German means of payment and deposits for its own account and makes available the gulden equivalent in accordance with the transfer agreement signed with the Reichsbank.

The Netherlands Finance Ministry tried to continue to confer on the means of payment taken up by the Netherlands Bank character of occupation costs, and proposed to make available a fund to be provided out of State means to take up these means of payment. The President of the Netherlands Bank, Mr Rost van Tonning, did not agree to this proposal, however, but pointed out that the treatment of internal German means of payment occupation costs cannot be reconciled with the idea of a close economic interpenetration with the Greater German Reich.

The Netherlands Bank is covered against exchange risks which could result from the taking up of internal German means of payment by a state guarantee of April 1941, which does not, however, cover the investments of Reichsmark deposits.

Up to 31 May 1941 the Netherlands State had spent for occupation costs:



Mill. gulden

a. Credit of the Chief Paymaster at the Mil. Commander in the Neths.* 931.6
b. Credit for the Reichskommissar 32.5
c. Credit in favor of the Netherlands-German clearing traffic 220.0
d. RKK certificates cashed 102.6

[Total] 1,286.7

To this must be added the claim of the Netherlands Bank against the Clearing Institute, mentioned above, for 121.5 million gulden, and 75 million gulden for the part of the external occupation costs demanded in addition which was to be provided in gold, and which was procured from the Netherlands bank by the State against payment of the gulden equivalent. (The additional instalment payment on the external occupation costs amounted to 500 mill. RM, of which 100 mill. RM equals 75 million gulden were to be delivered in gold ; 400 mill. RM was transferred to the Reichshauptkasse at the expense of the clearing account. The Netherlands State cancelled its claim against the Clearing Institute for 220 mill. gulden, and will cover the remainder by credits which will in the future be demanded to prepay export claims (see above).

The means to cover the costs arising in connection with the occupation could not be covered out of the current tax income; since this does not even suffice for covering the ordinary state expenditures, which have been increased by the war events. Therefore the Finance Minister had to undertake borrowing. He made continual calls on the credit at the Netherlands Bank available to him on the basis of the bank law, and used it frequently up to the maximum limit of 15 million gulden. Furthermore he borrowed from the Postal Administration and other State institutions. The main source of procurement of means was however the issuance of treasury certificates and treasury bills, which, as a result of the liquidity of the capital market, could be disposed of to a large extent in the open market. The absorptive ability of the banks, however, decreased for a time, so that, the .State had to fall back on. the Netherlands Bank to a great extent for a time. Through this type of money procurement the floating debt increased from month to month, and attained on the 31 May 1941
* For the period up to 31 May 1941 a sum of 1,095 mill. gulden was promised; the Military Commander disposed of 1,037.9 mill. by letters of authorization in the period named.


ECR- 174

the amount of 1,674 mill. gulden. If one includes the portion consolidated in February of this year, 500 million gulden, and subtracts the short-term Netherlands State debt amounting to 493 mill. gulden which existed already on 7 May 1940, there results a net increase in debt of 1,681 mill. gulden. Of this, 1,286 million gulden falls to occupation costs, as defined above, plus 75 mill. gulden in gold for the external occupation costs.

The means used to finance the floating debt, as of 31 May 1941, were as follows:

Use of the maximum legally permissible credit at the Netherlands Bank 15
issue of treasury certificates 143
issue of treasury bills (of which placed directly at the Netherlands Bank 125 mill. gulden on 31.5 and 213
mill. gulden on 30.4.41) 1,360
issue of silver bonds 83
use of public funds 73

[Total] 1,674

Signed: Dr. Buehler

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