Chapter XXX: Part 30

Dir. Ha Pol Nr. Buero RAM with the request for further transmission.

Berlin, 10 March 1942

Notes Concerning occupational cost regulation

With the approval of the Reich minister for Foreign Affairs all the departments took up again the question concerning the occupational costs.

According to the opinion of all the ministries expressed unanimously, negotiations with France concerning the occupational costs have become necessary, because a suspension or diminution of the payments on the part of the French was to be feared on one hand (Bouthillier-letter) and because the OKW on the other hand protested again with determination against the, in July 1941, proposed reduction of the installments to 10 million RM’s per day because of its current needs in France.

After careful deliberation of the question, all departments, the Armed Forces included, took the point of view that the reduction to 10 billion RM’s should not be conceded to the French as a final settlement on the occasion of new negotiations, but that they should be granted a breathing spell of about 6 months, from 1 April 1942--1 October 1942, which should exclude any further discussion of that question until that date. This is insofar of tactical importance as in that manner the old amount of the installments of 15 to 20 million RM’s is being maintained and thereby the important concession of a reduction to 10 million RM as a political concession is left open.

It has been agreed upon, that:

1. A current transfer from the existing credit amounting to 2 million RM per day in merchandize and 1 million RM in securities (stocks) and participation must be insisted upon for the meeting of the so-called external occupation costs.

2. The French Government should see to it that the expenditures for the occupational costs figure in the budget in a lawful manner.

3. A general regulation of the absolutely necessary tax-, wage- and price-reform and other measures for the prevention of the danger of an inflation must be demanded simultaneously.

The decision proved indisputably that we had no real efficacious counter-measures at our disposal in the case of an arbitrary suspension or diminution of the occupational costs by France. To make ourselves paid by sequestering the bank-note reserve of the Bank of France or by sequestering French State- or private property would only be of temporary efficacy, not to mention the political effect of such a measure of force. This would direct itself very soon against the proper German interest, because the present efficacious French cooperation in the execution of great armament orders and the distribution of orders would suffer strongly by it.

Considering these viewpoints, I ask for the authority to instruct the German Armistice delegation for economy in Paris to conduct the negotiations with the French delegation in that sense.

Hereby submitted to the Foreign Minister of the Reich
through the State secretary.

signed: Wiehl

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