Chapter XXV: Part 20: Paris 11 Sep 1941

C 3
Del. W. No. 9659 P

1. _Foreign BERLIN_
Del W. No. 443 of 11 Sep 1941

_Teletype Secret_

After extensive examination of the situation, I would like to suggest urgently, in reference to our dilatory treatment of the occupation costs, ordered by the telegram from there of 2 Aug 1941--No. 3863--and strictly complied with up to now, to make a new appeal to the Reichsminister for Foreign Affairs, to authorize me to sign the agreement over the reorganization reached with the French delegation, according to my telegram of 22 July 1941, Del. W. No. 372, and to put it into force.

In fact, it absolutely complies with Ambassador Abetz’s opinion, forwarded there in his telegram of 15 Aug 1941, paragraph 1, that our consent for a fundamental readiness to decrease the occupation costs has been given to Admiral Darlan on 7 May 1941 for the concessions, granted us in Syria. As it is reported to me, General Huntziger has represented the opinion to De Boisanger, that there may be a misapprehension or incomplete notification of German agencies, if now the settlement of the occupation costs are brought up in connection with the North African questions.

I further point out, that the present arbitrary de facto settlement of the payment of 15 instead of 20 million RM daily, already extends over 4 months, and that this represents for France the practically most favorable situation, and probably pleases more than the new regulation for 10 million RM credit plus 3 million RM transfer daily. It is still more important, that with a further delay of the settlement of occupation cost, a series of important questions, which are regulated with the reorganization simultaneously, remain further unsolved _at the same time_, and disadvantages for us come about from this:

1. The purchase of further French interests abroad is obligatory in most cases because of war-economical reasons. However, the reorganization, agreed to, cannot be taken up for that, as long as a total solution is still uncompleted. The Reichsministry for Economy reports that the negotiations are practically at a standstill at present for this reason. Therefore, the disadvantage lies with us alone in these subjects, while 60 million RM for the purchase of interests with the coming into force of the reorganization.

2. The execution of armament deliveries from France always presents to our armed forces authorities difficulties, which result from the payment. An immediate coming into force of the transfer of goods would directly result in favor of our war potential.

3. I can secure the final appointment of the German foreign trade commissioner at the same time, for which especially the Four Years’ Plan and the military commander show a lively interest.

But the stoppage also has a disadvantageous effect on the other work of the delegation. I am forced to approach the French government every week with new demands, mostly war-economically important, among them the construction of a German-French clay factory in France for deliveries of additional 100,000 tons of clay per year, the renting of several thousand trucks with French drivers, and the purchase of 15,000 French trucks, converted to wood gas for transports to Russia.

Everywhere the energetic cooperation of the French government and in part serious pressure by the government on its own economic circles are necessary for the execution of these problems. Because of the well-known tendency of the French government to hide themselves in case of such economic desires behind the general political situation, my efforts now ran against continually increasing difficulties. It is therefore desired to reinstitute the previous status as soon as possible, and to keep the field of endeavor of my delegation free and independent of the prevailing political constellations, as much as possible.

For these reasons, I recommend, that the present uncertain situation of the occupation cost question, which can only have a disadvantageous effect on us ourselves, be ended soon, and that the new settlement be ordered by us now.

[In ink] Ambassador Abetz has been informed of this telegram before it was forwarded.

/s/ Hemmen

1735 No. 23 one received foreign office KR

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