Report of the Reichskreditkasse, Berlin, 30 October 1943 relating to conferences in France with regard to the repayment of French currency advanced for Wehrmacht purposes. The French payment media required for exchange transactions made by the Reichskreditkassen in France for the Wehrmacht and for similar exchange transactions of the German Reichsbank are taken by us at first from funds made available through occupation costs payments In order to balance our franc account, it is necessary to deduct subsequently from "Occupation Costs Account B" the amounts thus withdrawn ** * Since June, no payments were received for this purpose as allegedly no funds could be made available from "Occupation Costs Account B". In consequence, the deficit from such transactions amounted by the end of September to 188 million RM.

* *

*

*

In addition, the Army Pay Master, in accordance with a note of the Armistice Delegation, has to repay us from occupation costs funds a further amount of 50,790,600 RM which we advanced in ffrs. in order to expedite the transfer of savings from wages of French migratory labor until the method of transfer by checks went into effect. After the conversations, this amount has, in the meantime, been repaid. The Army Pay Master furnished figures to show that on 30 September 1943 the balance in his favor in "Occupation Costs Account B" was only 114 million RM. Of this amount, 110 million RM were earmarked for purchases of wheat from the 1942 harvest. On the basis of existing arrangements, it was assumed that this amount would be paid through the clearing account. However, it was learned that only beginning with the wheat shipments of the 1943 crop, payment would be made for this purpose through the clearing, therefore the amounts accumulated until the end of the old crop must still be paid from occupation costs. In consequence, the balance in "Account B" amounts to only 4 million RM, leaving the Wehrmacht without reserves and making it completely dependent on current payments which can cover the Wehrmacht's direct requirements only through an arbitrary reduction, at this time, of approximately 10 percent. [P.22]

From German Armistice Commission for Economic Affairs (Reichsbank Director Hartlieb) Salzburg, 11 October 1944 to Reichsbank Director Wilz of the Reichskreditkasse in Berlin containing a statement showing receipts and expenditures in the

occupation accounts. The pertinent parts of this statement are given below:

1.

In accordance with Article 18 of the Armistice Agreement, the French Government has made occupations Costs payments for the period from 25 June 1940 to 5 September 1944* aggregating

RM 31,043,300,000 V

In addition, the French Government paid on the basis of an exchange of notes of 24/25 November 1943 (transfer of occupation costs installments to Germany formerly paid in favor of Italy),

RM......550,000,000 V

Thus the total amount credited to the "Occupation Costs Account" of the Reichskreditkasse in Paris with the Bank of France was

RM 31,593,300,000 V

These amounts comprised the following installment payments for occupation costs:

From 25 June 1940 to 10 May 1941.

*The last payment, amounting to 400 million RM was made 12 August 1944 as part payment for the installment of 815 million RM due on 21 August 1944. Through this partial payment, the installments up to and including 5 September 1944 were covered. **The amounts to be paid totalled RM 16,625,000,000. However, they were reduced through the German contribution for the sup

ply of quarters in Southern France (10 million RM per month
from 11 November 1942 to 31 August 1944) by a total of 216.7
million RM.
II.

The French payments (installment payments and advances
payable to Italy and transferred to Germany) and the German
expenditures, compiled by calendar year and by daily average
were as follows:

The unused German balance [Computed on the basis of actual
receipts and disposals by the Reichskreditkasses] showed the fol-
lowing developments:

Note. In the above tables the figures on German annual and daily ex-
penditures were written in pencil, also the checks and x's. [P. 24]

III.

According to the foregoing compilation, the total German
expenditure for the period 25 June 1940 to 31 August 1944
amounted to 31,317,778,252.81 RM distributed as follows:

A-I

Redemption of Requisition Certificates
Reichsminister for Economic Affairs

A-II Foreign Office

A-IV Reichsministry for Transportation
A-V Reich Agency for Animals

69,468,582.53

1,554,063,585.94

50,000,000.00

2,493,616.95

19,000,000.00

A-IX Sale of francs to the Reich

(imports to Alsace-Lorraine of com-
modities purchased in France)

A-III Support payments to dependents of
French labor in Germany

A-VI Exchange of RM by the Bank of France
on behalf of persons in Alsace-Lorraine

A-VII Financing of the purchase of raw sugar in Northern France

A-X

Reichsministry for Education
Miscellaneous Payments (Account B)

Total

66,000,000.00

1,500,000.00

901,846.00

1,285,000.00

1,000,000.00

14,430,192.62

RM 31,317,778,252.81

[P. 25]

From Reichskreditkasse Berlin 26 August 1943 to Reichsminister of Finance, Berlin (Attention: Oberregierungsrat Dr. Bussman): From the day they were established until 31 July of this year, the Reichskreditkassen in France have purchased-in part through the intermediary of the Devisenschutz Kommando in Paris-and placed at the disposal of the Reichsbank the following:

Gold Coins and Bars Valued at
Foreign Notes and Coins Valued at

RM 4,774,684.13 903,284.36

RM 5,677,968.49

The ffrs. required for these transactions were advanced by us from occupation costs owing to the lack of our own funds for such purposes. These amounts are now lacking as cover for the Giro balances maintained by the finance offices of the Wehrmacht. As a result, current money transactions and the making available of required French payment media are made more difficult. We consider it therefore necessary to make a final settlement in the occupation costs account and request that the countervalue be debited to "Occupation Costs Account A" and made available to

us by crediting the RM amount in the account "Reichskredit" maintained at our bank.

From Reichskreditkasse, Berlin, July 1943 (day of the month omitted) to Reichsminister of Finance. At the beginning of July of this year, the Devisenschutzkommando in Paris delivered to us gold valued at RM 4,117,582.10 for transmission to the Reichsbank. The gold accepted by our Administration in France since April 1941 for which payment was made in French francs has a total value of 4,517,728.34 RM.

Reichskreditkasse, Paris, to Armistice Delegation, Paris, dated 2 July 1943: Supplementing our letter of the 12 March 1943 and of the 7 April 1943, we submit below, in accordance with your request, a statement showing the cash withdrawals from our bank in the months of April to June 1943. [P.26]