German costs assessed on occupied countries 1940-44

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German costs assessed on occupied countries 1940-44

Post by David Thompson » 31 Oct 2004 02:45

During WWII, the Germans assessed "occupation costs" against the countries they had conquered. Basically the German occupation administrations told the conquered countries each year how much they owed, and then the occupation administrations proceeded to collect it. To keep their own costs low (and to provide opportunities for corrupt personal enrichment), the German occupiers also speculated in the "black markets" of some of the conquered countries. This interesting report provides a great deal of information on the "occupation costs," the scale of the "black market" speculation, and currency rates in Nazi-occupied Europe during the 1940-1944 period. These activities later formed the basis for "Plunder and Spoiliation" war crimes charges against some of German administrators.

Here is part 1 of 2 parts:

German Report on 'Financial Contributions' of Occupied Areas to 31 March 1944: Report of Working Staff for Foreign Countries, 10 October 1944, Including Breakdown of Occupation Costs, Rates of Exchange and Purchasing Power of Reichsmark (Noting Black Market Influences), In Citing Requisitions of Funds in Occupied Countries, 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. 911-922.

Translation of Document EC-86, Prosecution Exhibit 2491.

Working Staff Foreign Countries
No. 02051144 g. Kdos. II. Ang. Wannsee
10 October 1944
[Stamp] Top Secret
3 copies--2d copy.

Second Compilation from the Work of the Research Office for Military Economy [Wehrwirtschaft]:

The Financial Contributions [finanziellen Leistungen] of the Occupied Territories to 31 March 1944 (Research Office for Military Economy 182/44 g. Rs.)

The Individual Areas.

1. The Protectorate: The exchange of goods between Germany and the Protectorate is no longer regarded as foreign trade. For this reason, the extent of the real surplus produced by the Protectorate cannot be evaluated. We can only determine the amount of the contribution [Matrikularbeitrag] paid to the Reich by the Protectorate. [See Table 1].

Of course the Protectorate has furnished much more than this sum of 2.3 billion RM during the years it has belonged to the Reich. We need only think of the weapons of all kinds that were taken over by the armed forces, the manpower represented by the armament workers assigned to the Reich, the continual goods deliveries, etc. Of these items, it is known only that the value of the arms captured in 1939 amounted to 648 million korun, or 77 million RM in purchasing power as of that date. For the reason referred to above, the proportions of the other items cannot be assessed.

The total figure of approximately 2400 million RM arrived at here, is, therefore, necessarily too low.

2. The Government General: The Government General, also, pays a fixed sum, the so-called defense contribution [Wehrbeitrag], and has been doing so since the fiscal year 1940/41.

In regard to the exchange of these sums in zloty, in this case at the official rate of 0.50 RM for 1 Zl, it should be noted that the official prices (retail prices) have scarcely changed since the beginning of 1941. Price increases have occurred only in the cases of certain goods (textiles). The rates of purchasing power resulting from individual prices have approximated, as a rule, the official rate of exchange. In the case of food-stuffs, our chief import item from the Government General, the purchasing power of Zl is rather higher than 50 Rpf., whereas for other goods it is considerably less. Black market prices, on the other hand have steadily risen and are many times higher than the official prices. But there is no uniform inflationary factor [Ueberteuerungsfaktor] such as has been established in the West. The prices range from two to sixty times the normal prices and completely disguise former relationships between goods. For this reason and because the sum of monies expended upon the black market is unknown, the exchange can be calculated only in terms of the official, and not the black market, rates. But since army supplies, in particular, were apt to be considerably more expensive than in the Reich, we have reckoned, beginning with 1942/ 43, a tenth of the total demand at a rate one half lower (1 Zl = 0.25 RM), arriving at the following result: [See Table 2.].

In 1940/41 the Government General was not held to the payment of a set sum, but it had to permit the transfer of about 580 million Zl notes of the former Polski Bank from the Reich and other countries to the account, and for the credit, of the Reich.

The established clearing [The word "clearing" as it appears in this document is not a translation, but was used in the original document.] debt of the Reich to the Government General increased by 28 million RM between the end of August 1940 and the end of March 1943. But this low sum is only what remained of the actual clearing debt after a substantial investment of Government General credits in Reich Treasury bonds. As of 31 March 1944, 3396 million RM were so invested. The actual clearing debt approximates, then, 3424 million RM.

Not all that the Government General furnished was through clearing agreements. For instance, the wages sent out by the Polish laborers employed in the Reich, and the prisoners of war, were carried by ordinary mail and did not go through clearing. Up to the end of March 194 [one digit missing, probably 1944] a total of 100.6 million RM was sent, 70.8 of it by civilian workers.

The determined performance of the Government General is as follows:

Reichsmarks (millions ): 1200 RM million
Defense contribution; 290 RM million
Return of Zl notes; 3424 RM million
Clearing debt and Reich Treasury investment; 71 RM million
Sent by laborers; 30 RM million
Sent by PW's; Total: 5015 RM million.

3. France: With France we come to the group of countries that pay occupation costs in the real sense. From the time France was first occupied until the end of March 1944, she placed the following sums at the disposal of the Armed Forces, to the account of occupation costs: [See Table 3.]

If one converts the above sums in terms of purchasing power, one arrives at considerably higher values for the first 3 years. The purchasing power and the rate of exchange did not become equalized until the year 1943. But not all goods financed by occupation costs are bought at the official prices; some are paid for at black market prices. One can assume that the black market played a very small role in 1940, since there were still ample stores of supplies available. Only beginning with 1941 is the black market taken into account here, when the inflation factor is placed at 4. In 1942 this figure became 6 (according to Veltjens), and it is estimated at 8 for 1943 and 1944. [100 Frs. equals --RM]

1940: official: 9.9; on the black market: --
1941: official: 7.7; on the black market: 1.9
1942: official: 6.4; on the black market: 1.1
1943: official: 5.0; on the black market: 0.6
1944 (beginning of): official: 5.0; on the black market: 0.6.

Exact documentation concerning the extent of black market purchases is available only for the Veltjens Action, which in France required 1555 million RM, or 31.1 billion francs at the official rate of exchange. The greater part of the purchases were made in 1942, amounting to about 1155 million RM. It is estimated that only about 400 million RM were expended in France in 1943. If one converts the 31.1 billion francs at the then rate of exchange on the black market, one arrives at the low sum of 318 million RM.

It can be assumed that a part of Armed Forces expenditures still goes into the black market--a particularly large proportion in the case of personal expenses, which, during the last years in France, constituted between 18 and 25% of total expenditures. Certainly it is not too high an estimate if it is as that one half of personal expenditures, and so perhaps 10% of all expenditures, went to the black market. It calculated that 5% was expended in the black market in 1941, since the latter was still of slight importance at that Certain Armed Forces expenditures for materiel (such as plies for Wehrmacht installations [Wehrmachtinvestitionen]) may have been made at higher than the official prices, if not at the really high black market prices. In this connection assumed here that 10% of materiel expenditures were at twice the official prices.

Until a short time ago, the French black market was fed still another source--the importation of Reich Credit Notes[Reichskreditkassenscheinen] from the other occupied regions. Although the issuance of Reich Credit Notes in France had practically ceased in October 1940, sums in Reich Credit Notes were currently presented with the accounting of occupation costs (1942: 460 million RM; 1943: 1180 million RM- 1st quarter 1944- 25 million RM.). Even though a portion of this was issued in France to begin with, it can be assumed that the greatest proportion--we place it at 75% for 1942 and 1943--comes from the other occupied regions; in 1942: 345 million RM., in 1943: 885 million RM. While it is not likely that the entire] sums went into the black market, it is thought that 75% of them did.

We obtain, therefore, for:

1942: 260 million RM
1943: 660 million RM
1944: 19 million RM.

Altogether, the following amounts were expended in the black market (in billions of Francs): [See Table 4]

Armed Forces expenditures in France were as follows: [See Table 5.]

The real sum of occupation costs amounted to about 28 billion RM. The "loss" through the black market, that can be figured by converting the sums spent in the black market to their relative value in purchasing power in the official market and then subtracting from these the real value of the black market purchases, is estimated to approximately 6.4 billion RM. In other words, for value of about 900 million RM received on the black market, one could have received a value of 7.3 billion RM in the official market, had the goods concerned been available in the latter.

In spite of the extent of black market purchasing, the real value of the occupation costs is still above the sum that would be received through conversion at the 5 pfennig rate of exchange (26.8 billion RM), since French prices were much lower than German prices at the beginning of the occupation period. The opinion expressed in the recent report of the Military Commander, ["The Contribution of the French Area to the War Economy,' Paris, April 1944.] namely, that due to black market purchases not even the sum of 26.8 billion RM was realized, must therefore be regarded as too pessimistic.

The German clearing debt with France, in which is expressed the value of her external contributions (import surpluses, French workers employed in the Reich), has increased greatly during the occupation years.

Conversion of the clearing debt must be effected at lower rates than at the purchasing power rates referred to above. For, since 1941, the French have levied a duty known as the "revenue de perequation" upon those exports for which higher prices were obtained than could be realized in the domestic market. This shows that export prices were, in part, higher than the French domestic prices. It is of course difficult to estimate the degree of this difference. The mean between the purchasing power rate based Upon the domestic price and the rate of exchange is shown here for 1941 and 1942: 1941--6:3; 1942--5:7.

From that time when the purchasing power rate approximated the rate of exchange (about 1943), the latter was adopted and it has been retained for the first quarter of 1944. Imports from France have been cheapened to some extent today, it is true, which might suggest conversion at a rate under the [official] rate of exchange, but the sums expended to that end [Verbilligungsbetraege] are still relatively low. Besides, many goods are still imported from France at less than Reich prices.

The clearing debt was as follows:

From November 1940 to August 1941: 8976 million Francs, 565 RM million purchasing power From September 1941 to August 1942: 28438 million Francs, 1621 RM million purchasing power
From September 1942 to August 1943: 54718 million Francs, 2736 RM million purchasing power
From September 1943 to end of March 1944: 44128 million Francs, 2206 RM million purchasing power.
Total: 7128 RM million purchasing power.

The total demonstrable French contribution is in the vicinity, then, of 5 billion RM. This sum does not include all of the French contributions, for example, captured raw materials valued at about 255 million RM, war booty, or the billeting services.

4. Belgium: From the beginning of the occupation period until 31 March 1944, Belgium paid about 5.7 billion RM in occupation costs. [See Table 6.]

The total given here is probably too high, for in Belgium, too, certain sums regularly reached the black market; at the least, this occurred in the case of personnel expenditures. Belgium's price policy has been definitely more successful than that of France, however, and the extent and prices of the black market accordingly lower. If one reckons with an inflation factor of 3 for 1940 and 1941, and of 6 for the succeeding period, and assumes that 1/20 of the amount for the first two years and 1/10 for the remaining period went into the black market, the above figures may be broken down as follows: [See Table 7].

In comparison with the occupation costs, the clearing debt is very high, at least when regarded from the standpoint of the relationship in France. In Belgium it amounts to about 3/4 of the occupation costs, whereas it totals only 1/4, in France.

It increased as follows:

From 12 July 1940 to 31 August 1940 by: 21 million RM
From September 1940 to end of August 1941 by: 383 million RM
From September 1941 to end of August 1942 by: 974 million RM
From September 1942 to end of August 1943 by: 1898 million RM
From September 1943 to end of March 1944 by: 1012 million RM
Total: 4288 million RM.

These reichsmark sums, determined with the aid of the official rate of exchange, also must be converted to the rate of purchasing power, and there must be taken into account the sum of the official black market purchases (Veltjens Action), amounting to 267 million RM. Let us say, for the sake of simplicity, that the black market action took place entirely within the 4th year of the war economy, even though it began somewhat earlier (mid-6.42). The increase [Not including Belgium's deliveries.] of the clearing debt may be broken down as follows: [See Table 8].

The sum total of Belgium's contribution, then, amounts to about 9300 million RM.

5. The Netherlands: The Netherlands is the only country that not only paid for internal occupation costs, for the subsistence of the troops and other occupation needs, but also contributed to the external costs of occupation. The sums for the latter were paid, in part, in gold--some time ago the gold reserves were exhausted--and for the rest in reichsmarks. The reichsmark sums probably originated in foreign trade. To the extent of the latter payments, it was possible to import goods from Holland without payment, a procedure that calls to mind English imports from Canada. [See Table 9].

If one evaluates the internal occupation costs by the obtaining rate of purchasing power, one arrives at the following sums: [See Table 10].

After a considerable initial rise in prices in Holland, the purchasing power as successfully held close to the official rate of exchange. The black market prices, however, are especially high. The inflation factor for 1942 is given as 4, while it is estimated at 8 for 1943 and at 10 for 1944.

Probably one half of the payments made to personnel, which lately constituted approximately 25% of total expenditures, found its way into the black market; and some of the payments for material have been made at higher than official prices (Armed Forces purchases of wood, etc.). As in the case with France, we calculate that since 1942-3, 10% of expenditures for supplies and equipment were made at twice the official prices.

On the basis of the above suppositions, the following accounting can be made: [See Table 11].

Some of the external costs of occupation, too, were connected with the black market. We refer here to the official black market purchases, which were paid for in Holland with reichsmarks and which came to 160 million RM. If we take the black market rate of exchange for 1942 as 32 Rpf, that amounts to the sum of 40 million RM. The reichsmark remittances for 1942 must therefore be established at 480 million RM. instead of 600 million RM. Altogether, we received from Holland the following amounts: [See Table 12].

Since the Netherlands has counted as a domestic currency area [Deviseninland] since 1 April 1941, the balance of Dutch contributions in external trade with the Reich cannot be exactly ascertained. That part of the total contribution surpluses which is not covered by the external costs of occupation accumulates with the Deutsche Reich Bank in the reichsmark account of the Netherlands Central Bank (as of 31 March 1944: 5120 million RM.). The greater part of this, that is 4958 million RM., was invested in Reich Treasury bonds.

Since the acquisition of gulden through the deposit of reichsmarks in Germany was not curbed until recently and the control over goods movements was inadequate, it can be assumed that great sums in gulden--we estimate them to equal 1/5 of the entire reichsmark account of the Dutch National Bank--were acquired by Germans for buying on the Dutch black market. If this sum is equated with the average inflation factor of 6, the real value amounts to 4260 million RM.

The total of Dutch contributions, accordingly, comes to 12030 million RM.

6. Denmark: Denmark is not considered as occupied territory and so pays no occupation costs. The funds needed by the German troops are placed at the disposition of the head administration of the Reichskreditkassen by the Danish Central Bank by way of credits. For the duration of the war, then, at any rate, Denmark made no uniform contribution. The credits so claimed amounted to almost 1.5 billion RM by 31 March 1944: [See Table 13].

No estimation is made of the sums going into the black market. It can be assumed to be sure, that members of the armed forces buy butter and other products at increased prices in Denmark, too, but it is impossible to make any accurate statement concerning this. For the black market seems less widespread and less well organized than in the occupied Western regions and more similar to the German black market, with its irregular price structure. As a rule certainly, the Danish black market prices were far below the German. Therefore, one can not speak of a uniform over-charge or inflation factor, as in France, Belgium and Holland.

Our clearing debt to Denmark amounts to about 1100 million RM. It increased as follows:

From 9 April 1940 to 31 August 1940: 297 million Kroner; 158 RM million (purchasing power)
From 1 September 1940 to 31 August 1941: 358 million Kroner; 171 RM million (purchasing power)
From 1 September 1941 to 31 August 1942: 416 million Kroner; 198 RM million (purchasing power)
From 1 September 1942 to 31 August 1943: 560 million Kroner; 268 RM million (purchasing power)
From 1 September 1943 to 31 March 1944: 612 million Kroner; 293 RM million (purchasing power)
Total: 1088 RM million (purchasing power).

Denmark's total contribution, then, amounted to about 2530 million RM.

7. Norway: The Norwegian economy has borne an especially heavy burden of occupation demands. For this reason the occupation charges had to be limited to only a portion of the Armed Forces expenditures. The remainder is being financed, for the time being, by credits of the Central Bank placed at the disposition of the head administration of the Reichskreditkassen. [See Table 15].

Expressed in reichsmarks, this equals for the following amounts: [See Table 15].

This sum of over 5 billion RM is indeed a large amount, taking into consideration the state of Norwegian economy. Countries with much greater economic resources, such as Belgium, paid little more, and Denmark furnished not even half as much. These large contributions were made possible only through German subsidies [Zuschuesse]. It is not surprising, therefore, that German-Norwegian foreign trade is balanced in Germany's favor, that is, it is a subsidized operation [Zuschussgeschaeft]. Since Norway is scarcely in a position to furnish labor forces to Germany, owing to her own manpower shortage, it is one of the few countries which owe us certain amounts under the clearing agreement.

Status of German Clearing Balance (in million RM):

31 August 1940: minus 5.6 million RM
31 August 1941: plus 111.3 million RM
31 August 1942: plus 43.2 million RM
31 August 1943: plus 105.3 million RM
31 August 1944: plus 132.3 million RM.

Increases and decreases in the German demands made on Norway were as follows:

From 9 April 1940 to 31 August 1940: minus 10 million Kroner; minus 6.4 RM million (purchasing power)
From 1 September 1940 to 31 August 1941: plus 205 million Kroner; plus 131.0 RM million (purchasing power)
From 1 September 1941 to 31 August 1942: minus 120 million Kroner; minus 63.4 RM million (purchasing power)
From 1 September 1942 to 31 August 1943: plus 109 million Kroner; plus 57.3 RM million (purchasing power)
From 1 September 1943 to 31 August 1944: plus 47 million Kroner; plus 24.7 RM million (purchasing power).

If this sum of about 140 million is subtracted from the occupation charges and credits granted, as presented above, there still remains the very considerable sum of approximately 4900 million RM representing the contribution made by Norway.

8. Serbia...[The dots after the subheadings "8. Serbia" and "9. Greece" appear in the original German document.]

9. Greece...

10. Occupied Eastern Areas:

In determining the value of the contributions of the Occupied Eastern areas it is expedient to appraise separately the items involved. For occupation payments were made only by the Ostland the Ukraine, but not by the zone of operations, and only a part of the foreign trade is carried on under clearing arrangements. The goods claimed by the Armed Forces and the Reich are provided at German wholesale prices. Since the extent of much of the services rendered (quartering and transport) is unknown, and the value of only the most important food and raw material deliveries has been determined, the sum arrived at by the addition of the individual items is necessarily too low.

a. Agricultural deliveries, up to 31 March 1944, totaled just about 4 billion RM as against German counter contributions of 500 million RM, so that the total value received was in the neighborhood of 3.5 billion RM.

b. In the field of industrial contributions, very little was achieved. Russian deliveries of raw materials valued at approximately 725 million RM are offset by German importations of machinery, tools, and equipment valued at 500 million RM and coal deliveries (not counting those of the Armed Forces and the railways) amounting to approximately 35 million RM. There remains a net profit, therefore, of only 190 million RM. There should be added the contributions made by the processing industries to the Army in the East, here estimated at 500 million RI. The total contributions in the industrial field can therefore be placed at 690 billion RM.

c. Finally, the net profit from the employment of the Eastern workers, obtained from laborers, remittances, and deductions from wages [Ostarbeiterabgabe], must be taken into account.

Worker's remittances: 26.5 million RM
Deductions from wages: 209. million RM
Total: [Sic] 335.5 million RM.

d. The final balance--admittedly incomplete--appears something like this:

Agricultural contributions: 3500 RM Million
Industrial contributions: 690 RM Million
Manpower labor value: 335 RM Million
Total: 4525 RM Million.

The Russian contributions total, then, 4.5 billon RM. This is less than the contributions of most of the countries. France furnished about 7 times as much, Belgium more than twice as much, and the other countries, with few exceptions, also provided more. The figure given appears unbelievably low, in fact, not only in comparison with other countries, but also from an absolute standpoint. The value of all food and raw material deliveries to the Armed Forces and of the manpower employed in the Reich is doubtless not fully represented in this sum of 4.5 investments in the then Russian economy. [The contributions which can not be assessed doubtless run into the billions.] They will be taken into consideration in the concluding statement, where all the contributions which can not be statistically evaluated will be
summarized.

[Handwritten] certified,
[Illegible signature] Major.


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Table 1:

Amount of Contribution Paid to the Reich by the Protectorate: Year 1940

Amount of Korun: 3000 million.

RM-purchasing power rate of exchange. 100 Korun equals --RM: 8.73.

Purchasing Power Reichsmarks (millions): 262 million.

Amount of Contribution Paid to the Reich by the Protectorate: Year 1941

Amount of Korun: 5000 million.

RM-purchasing power rate of exchange. 100 Korun equals --RM: 8.23.

Purchasing Power Reichsmarks (millions): 412 million.

Amount of Contribution Paid to the Reich by the Protectorate: Year 1942

Amount of Korun: 8000 million.

RM-purchasing power rate of exchange. 100 Korun equals --RM: 8.07.

Purchasing Power Reichsmarks (millions): 646 million.

Amount of Contribution Paid to the Reich by the Protectorate: Year 1943

Amount of Korun: 10000 million.

RM-purchasing power rate of exchange. 100 Korun equals --RM: 7.95.

Purchasing Power Reichsmarks (millions): 795 million.

Amount of Contribution Paid to the Reich by the Protectorate: 3 months, 1944

Amount of Korun: 2500 million.

RM-purchasing power rate of exchange. 100 Korun equals --RM: 7.95.

Purchasing Power Reichsmarks (millions): 199 million.

Amount of Contribution Paid to the Reich by the Protectorate: Total

Amount of Korun: 28500 million.

RM-purchasing power rate of exchange. 100 Korun equals --RM: 7.95.

Purchasing Power Reichsmarks (millions): 2314 million.


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Table 2:

Armed Forces Supplies Expenses [from Poland]: Year 1941/42

Official market: 500 zloty million; 250 RM million.

Market for special armed forces purchases: ----.

Total Reichsmarks: 250 million.

Armed Forces Supplies Expenses [from Poland]: Year 1942/43

Official market: 630 zloty million; 315 RM million.

Market for special armed forces purchases: 70 zloty million; 17.5 RM million.

Total Reichsmarks: 332.5 million.

Armed Forces Supplies Expenses [from Poland]: Year 1943/44

Official market: 1170 zloty million; 585 RM million.

Market for special armed forces purchases: 130 zloty million; 32.5 RM million.

Total Reichsmarks: 617.5 million.

Overall Total: 1200 RM million.


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Table 3:

Occupation Costs of Armed Forces, Paid by France: In Reichsmarks

Year 1940: 1759 RM million.

Year 1941: 5087 RM million.

Year 1942: 7872 RM million.

Year 1943: 9798 RM million.

1st Quarter of 1944 [Figured per fixed daily contributions.]: 2275 RM million.

Total: 26791 RM million.

Occupation Costs of Armed Forces, Paid by France: In Francs

Year 1940: 35180 million Francs.

Year 1941: 101740 million Francs.

Year 1942: 157440 million Francs.

Year 1943: 9798 million Francs.

1st Quarter of 1944 [Figured per fixed daily contributions.]: 45500 million Francs.

Total: 535820 million Francs.


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Table 4:

Amounts Expended in the Black Market in France: Year 1941

Veltjens Action [The reference is to the activities of Colonel Veltjens, Plenipotentiary for Special Tasks in the Four Year Plan. See Document NG-4237, Prosecution Exhibit 2488, reproduced earlier in this section.]: --.

Soldier purchases: 5.1 billion Francs.

Importing of Reich credit notes: --.

Total: 5.1 billion Francs.

In addition, Armed Forces purchases at higher than official prices: --.

Total: 5.1 billion Francs.

Amounts Expended in the Black Market in France: Year 1942

Veltjens Action [The reference is to the activities of Colonel Veltjens, Plenipotentiary for Special Tasks in the Four Year Plan. See Document NG-4237, Prosecution Exhibit 2488, reproduced earlier in this section.]: 23.1 billion Francs.

Soldier purchases: 15.7 billion Francs.

Importing of Reich credit notes: 5.2 billion Francs.

Total: 44.0 billion Francs.

In addition, Armed Forces purchases at higher than official prices: 12.6 billion Francs.

Total: 56.6 billion Francs.

Amounts Expended in the Black Market in France: Year 1943

Veltjens Action [The reference is to the activities of Colonel Veltjens, Plenipotentiary for Special Tasks in the Four Year Plan. See Document NG-4237, Prosecution Exhibit 2488, reproduced earlier in this section.]: 8.0 billion Francs.

Soldier purchases: 19.6 billion Francs.

Importing of Reich credit notes: 13.2 billion Francs.

Total: 40.8 billion Francs.

In addition, Armed Forces purchases at higher than official prices: 15.7 billion Francs.

Total: 56.5 billion Francs.

Amounts Expended in the Black Market in France: Year 1942

Veltjens Action [The reference is to the activities of Colonel Veltjens, Plenipotentiary for Special Tasks in the Four Year Plan. See Document NG-4237, Prosecution Exhibit 2488, reproduced earlier in this section.]: --.

Soldier purchases: 4.5 billion Francs.

Importing of Reich credit notes: 0.4 billion Francs.

Total: 4.9 billion Francs.

In addition, Armed Forces purchases at higher than official prices: 3.6 billion Francs.

Total: 8.5 billion Francs.
Last edited by David Thompson on 14 Nov 2004 00:42, edited 2 times in total.

David Thompson
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Post by David Thompson » 31 Oct 2004 02:51

Part 2 (final):

Table 5:

Armed Forces Expenditures in France: Year 1940

Official market: 35.2 billion Francs; 3480 RM million.

Market for special Armed Forces purchases: -- --.

Black Market: ----.

Total: 3480 RM million.

Armed Forces Expenditures in France: Year 1941

Official market: 96.6 billion Francs; 7440 RM million.

Market for special Armed Forces purchases: -- --.

Black Market: 5.1 billion Francs; 100 RM million.

Total: 7540 RM million.

Armed Forces Expenditures in France: Year 1942

Official market: 100.8 billion Francs; 6450 RM million.

Market for special Armed Forces purchases: 12.6 billion Francs; 400 RM million.

Black Market: 44.0 billion Francs; 480 RM million.

Total: 7330 RM million.

Armed Forces Expenditures in France: Year 1943

Official market: 37.0 billion Francs; 1850 RM million.

Market for special Armed Forces purchases: 3.6 billion Francs; 90 RM million.

Black Market: 40.8 billion Francs; 30 RM million.

Total: 7615 RM million.

Table 5: Armed Forces Expenditures in France: Total

Official market: 26200 RM million.

Market for special Armed Forces purchases:885 RM million.

Black Market: 850 RM million.

Total: 27935 RM million.


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Table 6:

Occupation Costs Paid by Belgium: Years 1940 and 1941

Belgian Francs: 29500 million.

Reichsmark rate of purchasing power. 100 Belgian Francs equals --RM: 8.6.

Reichsmarks purchasing power: 2537 RM million.

Occupation Costs Paid by Belgium: Year 1942

Belgian Francs: 19200 million.

Reichsmark rate of purchasing power. 100 Belgian Francs equals --RM:
8.0.

Reichsmark purchasing power: 1536 RM million.

Occupation Costs Paid by Belgium: Year 1943

Belgian Francs: 15045 million.

Reichsmark rate of purchasing power. 100 Belgian Francs equals --RM: 7.7.

Reichsmark purchasing power: 1197 RM million.

Occupation Costs Paid by Belgium: January 1944 to March 1944

Belgian Francs: 5481 million.

Reichsmark rate of purchasing power. 100 Belgian Francs equals --RM: 7.7.

Reichsmark purchasing power: 422 RM million.

Total for 1940 to March 1944: 5692.


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Table 7:

Amounts Expended in the Black Market in Belgium: Years 1940 and 1941

Official market: 28025 million Francs; 2410 RM million (purchasing power).

Black market: 1475 million Francs; 43 RM million (purchasing power).

Total: 2453 RM million (purchasing power).

Amounts Expended in the Black Market in Belgium: Year 1942

Official market: 17280 million Francs; 1382 RM million (purchasing power).

Black market: 1920 million Francs; 26 RM million (purchasing power).

Total: 1408 RM million (purchasing power).

Amounts Expended in the Black Market in Belgium: Year 1943

Official market: 13540 million Francs; 1043 RM million (purchasing power).

Black market: 1505 million Francs; 20 RM million (purchasing power).

Total: 1063 RM million (purchasing power).

Amounts Expended in the Black Market in Belgium: January 1944 to March 1944

Official market: 4933 million Francs; 380 RM million (purchasing power).

Black market: 548 million Francs; 7 RM million (purchasing power).

Total: 387 RM million (purchasing power).

Amounts Expended in the Black Market in Belgium: Total

Official market: 5215 RM million (purchasing power).

Black market: 96 RM million (purchasing power).

Total: 5311 RM million (purchasing power).


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Table 8: Increase of the Clearing Debt in Belgium: Year of War Economy: 1939-1940

Official market: 265 Belgian million Francs; 24 RM million (purchasing power).

Black market: ----.

Total: 24 RM million (purchasing power).


*******************************************

Table 8:

Increase of the Clearing Debt in Belgium: Year of War Economy: 1940-1941

Official market: 4789 Belgian million Francs; 397 RM million (purchasing power).

Black market: ----.

Total: 397 RM million (purchasing power).

Increase of the Clearing Debt in Belgium: Year of War Economy: 1941-1942

Official market: 12171 Belgian million Francs; 974 RM million (purchasing power).

Black market: ----.

Total: 974 RM million (purchasing power).

Increase of the Clearing Debt in Belgium: Year of War Economy: 1942-1943

Official market: 20338 Belgian million Francs; 1570 RM million (purchasing power).

Black market: 3338 Belgian million Francs; 43 RM million (purchasing power).

Total: 1613 RM million (purchasing power).

Increase of the Clearing Debt in Belgium: Year of War Economy: September 1943 to March 1944

Official market: 12650 Belgian million Francs; 974 RM million (purchasing power).

Black market: ----.

Total: 974 RM million (purchasing power).

Increase of the Clearing Debt in Belgium: Year of War Economy: Total

Official market: 3939 RM million (purchasing power).

Black market: 43 RM million (purchasing power).

Total: 3982 RM million (purchasing power).


**************************************************8

Table 9:

Occupation Costs of Armed Forces Paid by the Netherlands: Years 1940-1941

Internal occupation costs. 1 Dutch Florin equals 1.32 RM (millions): 1360 RM million.

External occupation costs: --.

Total occupation costs: 1360 RM million.

Occupation Costs of Armed Forces Paid by the Netherlands: Years 1941-1942

Internal occupation costs. 1 Dutch Florin equals 1.32 RM (millions): 1640 RM million.

External occupation costs: 950 RM million.

Total occupation costs: 2590 RM million.

Occupation Costs of Armed Forces Paid by the Netherlands: Years 1942-1943

Internal occupation costs. 1 Dutch Florin equals 1.32 RM (millions): 1640 RM million.

External occupation costs: 600 RM million.

Total occupation costs: 2240 RM million.

Occupation Costs of Armed Forces Paid by the Netherlands: Years 1943-1944

Internal occupation costs. 1 Dutch Florin equals 1.32 RM (millions): 1640 RM million.

External occupation costs: 600 RM million.

Total occupation costs: 2240 RM million.

Occupation Costs of Armed Forces Paid by the Netherlands: Total

Internal occupation costs. 1 Dutch Florin equals 1.32 RM (millions): 6280 RM million.

External occupation costs: 2150 RM million.

Total occupation costs: 8430 RM million.


*********************************************

Table 10:

Internal Occupation Costs of Armed Forces in the Netherlands: Years 1940-1941

Reichsmark--Actual purchasing power. 1 Dutch Florin equals -- RM (millions): 1.46 RM.

Internal occupation costs: 1030 million Dutch Florin; 1500 RM million.

Internal Occupation Costs of Armed Forces in the Netherlands: Years 1941-1942

Reichsmark--Actual purchasing power. 1 Dutch Florin equals -- RM (millions): 1.30 RM.

Internal occupation costs: 1240 million Dutch Florin; 1610 RM million.

Internal Occupation Costs of Armed Forces in the Netherlands: Years 1942-1943

Reichsmark--Actual purchasing power. 1 Dutch Florin equals -- RM (millions): 1.26 RM.

Internal occupation costs: 1240 million Dutch Florin; 1560 RM million.

Internal Occupation Costs of Armed Forces in the Netherlands: Years 1943-1944

Reichsmark--Actual purchasing power. 1 Dutch Florin equals -- RM (millions): 1.27 RM.

Internal occupation costs: 1240 million Dutch Florin; 1570 RM million.

Total internal occupation costs from 1940 to 1944: 6240 RM million.


*************************************

Table 11:

Armed Forces Expenditures in Holland: Years 1940-1941

Official Market: 1030 million Dutch Florin; 1500 RM million.

Armed Forces market for special purposes: -- million Dutch Florin; -- RM million.

Black market: -- million Dutch Florin; -- RM million.

Total: 1500 RM million

Armed Forces Expenditures in Holland: Years 1941-1942

Official Market: 1178 million Dutch Florin; 1530 RM million.

Armed Forces market for special purposes: -- million Dutch Florin; -- RM million.

Black market: 62 million Dutch Florin; 40 RM million.

Total: 1570 RM million

Armed Forces Expenditures in Holland: Years 1942-1943

Official Market: 992 million Dutch Florin; 1248 RM million.

Armed Forces market for special purposes: 93 million Dutch Florin; 59 RM million.

Black market: 156 million Dutch Florin; 25 RM million.

Total: 1332 RM million

Armed Forces Expenditures in Holland: Years 1943-1944

Official Market: 992 million Dutch Florin; 1256 RM million.

Armed Forces market for special purposes: 93 million Dutch Florin; 59 RM million.

Black market: 156 million Dutch Florin; 20 RM million.

Total: 1335 RM million

Armed Forces Expenditures in Holland: Total from 1940 to 1944

Official Market: 5534 RM million.

Armed Forces market for special purposes: 118 RM million.

Black market: 85 RM million.

Total: 5737 RM million


*********************************************

Table 12:

Occupation Costs of Armed Forces Paid by Holland: Years 1940-1941

Internal occupation costs: 1500 RM million.

External occupation costs: -- RM million.

Total : 1500 RM million.

Occupation Costs of Armed Forces Paid by Holland: Years 1941-1942

Internal occupation costs: 1570 RM million.

External occupation costs: 950 RM million.

Total : 2520 RM million.

Occupation Costs of Armed Forces Paid by Holland: Years 1942-1943

Internal occupation costs: 1332 RM million.

External occupation costs: 480 RM million.

Total : 1812 RM million.

Occupation Costs of Armed Forces Paid by Holland: Years 1943-1944

Internal occupation costs: 1335 RM million.

External occupation costs: 600 RM million.

Total: 1935 RM million.

Occupation Costs of Armed Forces Paid by Holland: Total from 1940 to 1944

Internal occupation costs: 5737 RM million.

External occupation costs: 2030 RM million.

Total: 7767 RM million.


**********************************************************

Table 13:

Occupation Costs of Armed Forces in Denmark: Years 1940-1941

Occupation costs: 531 million Kroner.

RM purchasing power. 100 Kroner equals -- RM: 53.1 RM.

Occupation costs, Reichsmark purchasing power: 282 RM million.

Occupation Costs of Armed Forces in Denmark: Years 1941-1942

Occupation costs: 437 million Kroner.

RM purchasing power. 100 Kroner equals -- RM: 47.7 RM.

Occupation costs, Reichsmark purchasing power: 208 RM million.

Occupation Costs of Armed Forces in Denmark: Years 1942-1943

Occupation costs: 612 million Kroner.

RM purchasing power. 100 Kroner equals -- RM: 47.5 RM.

Occupation costs, Reichsmark purchasing power: 290 RM million.

Occupation Costs of Armed Forces in Denmark: Years 1943-1944

Occupation costs: 1391 million Kroner.

RM purchasing power. 100 Kroner equals -- RM: 47.9 RM.

Occupation costs, Reichsmark purchasing power: 666 RM million.

Total Occupation costs from 1940 to 1944: 1446 RM million.


***********************************

Table 14:

Occupation Costs of Armed Forces Paid by Norway: Years 1940-1941

Occupation charges: 353 million Kroner.

Credit with the Norges Bank: 2132 million Kroner.

Total: 2485 million Kroner.

Occupation Costs of Armed Forces Paid by Norway: Years 1941-1942

Occupation charges: 1292 million Kroner.

Credit with the Norges Bank: 1835 million Kroner.

Total: 3127 million Kroner.

Occupation Costs of Armed Forces Paid by Norway: Years 1942-1943

Occupation charges: 981 million Kroner.

Credit with the Norges Bank: 942 million Kroner.

Total: 1923 million Kroner.

Occupation Costs of Armed Forces Paid by Norway: 6 months 1943 to March 1944

Fulltext: Occupation charges: approx. 750 million Kroner.

Credit with the Norges Bank: approx. 750 million Kroner.

Total: approx. 1500 million Kroner.


***************************************

Table 15:

Occupation Costs of Armed Forces Paid by Norway in Reichsmarks: Years 1940-1941

Total Occupation costs: 2485 million Kroner.

RM purchasing power value. 100 Kroner equals -- RM: 63.9 RM.

Purchasing power: 1588 RM million.

Occupation Costs of Armed Forces Paid by Norway in Reichsmarks: Years 1941-1942

Total Occupation costs: 3137 million Kroner.

RM purchasing power value. 100 Kroner equals -- RM: 52.8 RM.

Purchasing power: 1656 RM million.

Occupation Costs of Armed Forces Paid by Norway in Reichsmarks: Years 1942-1943

Total Occupation costs: 1923 million Kroner.

RM purchasing power value. 100 Kroner equals -- RM: 52.6 RM.

Purchasing power: 1011 RM million.

Occupation Costs of Armed Forces Paid by Norway in Reichsmarks: Years 1943-1944

Total Occupation costs: 1500 million Kroner.

RM purchasing power value. 100 Kroner equals -- RM: 52.6 RM.

Purchasing power:RM789 million.

Total from 1940-1944: RM5044 million.

michael mills
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Post by michael mills » 30 Jan 2005 23:17

The Russian contributions total, then, 4.5 billon RM. This is less than the contributions of most of the countries. France furnished about 7 times as much, Belgium more than twice as much, and the other countries, with few exceptions, also provided more. The figure given appears unbelievably low, in fact, not only in comparison with other countries, but also from an absolute standpoint. The value of all food and raw material deliveries to the Armed Forces and of the manpower employed in the Reich is doubtless not fully represented in this sum of 4.5 investments in the then Russian economy. [The contributions which can not be assessed doubtless run into the billions.] They will be taken into consideration in the concluding statement, where all the contributions which can not be statistically evaluated will be
summarized.


That is very interesting.

Germany invaded the Soviet Union with the intention of seizing the raw materials it needed for prosecuting the was against Britain, and escaping its position of dependence on the goodwill of Stalin and the need to buy those materials by exporting scarce manufactured goods to the Soviet Union.

However, the document shows that Germany completely failed in that aim. All the effort expended, the mass violence perpetrated in an attempt to squeeze food and other raw materials out of the occupied Soviet territories, effectively came to nothing.

walterkaschner
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Posts: 1588
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Location: Houston, Texas

Post by walterkaschner » 01 Feb 2005 10:45

David, I'm not sure whether or not I really want to thank you for supplying that document! It is indeed fascinating, but also incredibly frustrating (at least to me), and I've certainly spent more time than I normally allot to the pleasures of this Forum in scratching my head over it. I don't profess to any expertise in accounting or finance, but I've spent a good part of my professional life fussing with the legal aspects of financial statements and SEC filings, and thought I had at least a rudimentary understanding of how a profit and loss statement was put together. I may have substantially overestimated my capabilities, however, and I hope that one of our more proficient members may put me straight if I'm totally out of whack.

Although I find the entire document confusing, I've concentrated on trying to reconcile the unknown Major's conclusion that:

The total demonstrable French contribution is in the vicinity, then, of 5 billion RM.


And I've finally arrived at that approximate figure by the following calculation:

Total Armed Forces Expenditures in France......................27,935 million RM (Table 5)

Less adjustment for the "loss" through the black market....(6,400) *(See quote below)

Net Cost.....................................................................21,535 million RM

Total Paid by France.....................................................26,791 million RM (Table 4)

Net Contribution............................................................5,256 million RM


_________________________


*
The real sum of occupation costs amounted to about 28 billion RM. The "loss" through the black market, that can be figured by converting the sums spent in the black market to their relative value in purchasing power in the official market and then subtracting from these the real value of the black market purchases, is estimated to approximately 6.4 billion RM. In other words, for value of about 900 million RM received on the black market, one could have received a value of 7.3 billion RM in the official market, had the goods concerned been available in the latter.


But in truth this makes no sense to me, particularly in light of the Major's assessment of the Russian contribution in relation to the French:

The Russian contributions total, then, 4.5 billon RM. This is less than the contributions of most of the countries. France furnished about 7 times as much, Belgium more than twice as much, and the other countries, with few exceptions, also provided more.


Perhaps the comparison he makes is with the gross amount of 26,791 million ReichMarks paid by France rather than with the [i]net[/i] remaining after subtracting out the total Armed Force Expenditure, which might make some sense in that the Russian territories were not (and could not practically be) assessed for the cost of occupying forces, as the lines of battle were webbing and flowing over much of the territory, and there wasn't a central government available to assess for the cost.


But if we have any accounting or financial gurus aboard who can throw a brighter light on the picture, I would be much obliged.

Regards, Kaschner

David Thompson
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Post by David Thompson » 02 Feb 2005 12:11

Walter -- When I get some free time I'll post the reports by the military commander of northern France and Belgium on contributions, which hopefully may be helpful. If you haven't seen it already, the contribution system used in the occupied Netherlands in 1940-1942 is posted starting at: viewtopic.php?p=624103#624103

I'll also go back and re-proof my scan of this report from the "Ministries" case against the text of Document EC-86 in the Nazi Conspiracy and Aggression volume, to make sure that it is correct.

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