Chapter XL: Part 49: By special route via Altkirch

Belfort, 20 August 1944 No. 2739 IV

_Teletype_

Foreign

_Berlin_

No. 111 of 20 August 1944
In connection with No. 107 of 11 August.

As I reported on 12 August the 8 billion-rate promised by President Laval for 12 August has finally been paid on time after considerable difficulties had been overcome (compare my report of 16 August). There was an unmistakable tendency to put off this payment until after the approaching bank-holidays to the 16th in the hope that by that time the development of the military situation would prevent the payment (American tanks had already been reported in Chartres).

In addition to the increase of occupation cost payments I negotiated since 7 August upon suggestion of our military agencies with the Governor of the Bank of France, de Boisanger, about transport for safeguarding of the large reserves in bills in Paris (60 billion F. frs.) and Clermont Ferrand (80 billion F. frs.) to eastern France.

Readiness of the Bank of France to do so was undoubtedly present, the existing transport facilities and the requisite military protection however extremely slight. A first transport of 25 billion from Paris to Nancy was scheduled for 12 August; simultaneously also the installment of 8 billion due on the 12th was to be sent off because there would be no other transport opportunity for it. This transport was carried out. For a second transport of 25 billion the military could no more make available any trucks. Railroads are also out. Therefore, the German Bank commissioner tried to transfer 10 billion F. frs. on 2 trucks of the Bank of France in another transport about the completion of which there is no report yet.

Still greater were the difficulties of transport and protection for the transfer of 80 billion reserves in bills from Clermont-Ferrand to Dijon and Lyon, because there direct transport is being obstructed by Maquis and transport therefore had to be directed via Paris.

Ten billion of these did arrive. Further transports are improbable in view of the development in the meantime.

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However, on the morning of the following day, 17 August, I again negotiated orally with Minister Cathala and Governor de Boisanger about our demand for increase of occupation costs. Cathala at this opportunity declared as per order of President Laval that the French government now definitely refuses the demanded increase for reasons already stated. I stated that therewith I had to consider our negotiations as definitely frustrated and therefore reserve subsequent decisions to my government. As I had learned in the meantime that the convention in the Bank of France necessary for the installment of 8 billion due on 21 August had not yet been applied for, i.e., that on the due date new difficulties for the payment had to be expected, I expressed the definite expectation of the Reich Cabinet that order to pay the balance will be issued on time by the Ministry of Finances, Cathala thereupon declared that the French Government for a period of more than 4 years always fulfilled its obligations promptly. As long as he functioned as Minister of Finances he always considered it his special duty to fulfill the obligations contracted by the French Government; he would act the same way now in case he should still be in office on the 21 August. By saying so he distinctly alluded to the pending plans for a change of government and the present serious situation of President Laval.

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[Note: The original shows numerous corrections in ink. Translation followed the corrected version.]

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