Nazi Conspiracy and Aggression Volume IV
Document No. 1743-PS

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[Page 1] Economic Operations Staff East


Note: Up to mobilization day these instructions are to be treated as "Top secret", as of mobilization day open for "Restricted".

Guiding Principles for the Economic operations in the newly occupied Eastern territories

(Green portfolio)

Section I Assignments and organization of the Economy

Berlin, June 1941 Printed at the Armed Forces High Command Introductory remark. [page 3]

The "green portfolio", Section I, serves the military leadership and the Economic offices for orientation in the Economic assignments in the Eastern territories to be newly occupied. It contains instructions concerning the supplying of the troops from that land and provides the guiding principles for the troops to assist the Economy.

The instructions and guiding principles contained in the "green portfolio" correspond to the military orders issued by the armed forces high command and the branches of the armed forces.

The Major Economic Assignments

The following executions are first of all intended for orientation during the course of operations. But they contain simultaneously the guiding principles, which serve for the duration of the occupation as a fundamental principle. The Economic arrangements necessary in the further progress of the occupation will be released as soon as the great political aim is publicized, which will be determined in connection with the necessary improvement of the German war Economy.

I. In accordance with the commands given by the Fuehrer, all measures are to be taken which are necessary, to bring about the immediate and highest possible exploitation of the occupied territories in favor of Germany. On the contrary all measures are to be refrained or to be held back that could be harmful to this goal.

II. The Exploitation of the territories to be newly occupied must be executed first of all in the realm of food and mineral oil economy. To gain for Germany as much food stuff and mineral oil as possible is the main goal of this action. Aside of that order raw materials are to be transported from the occupied territories for the German War Economy, insofar as it is technically possible and with a view towards the production to be maintained outside. As far as kind and amount of the factory production to be maintained the occupied territory, to be reconstructed or newly ordered is concerned, this likewise is also in the very first line to be decided according to the needs, provided by the exploitation of the agriculture and the mineral oil Economy for the German War Economy.

For the Economic leadership in the occupied territories the main points are to be clearly outlined in accordance with this. This is valid with regards to the main aim as well as for the individual assignments and those that serve to aid their execution. From that it can be further concluded, that these assignments, that cannot agree with the given basic direction toward the goal, respectively those that may make their retention difficult, must be left out of consideration, no matter if their individual compilation does appear desirable. The conception would be totally off the track, if it would come to the point to uniformly pursue the idea in the occupied territories, that it can be directly restored to order and reconstructed with the greatest expediency. The treatment of the individual districts of the country will have to be on the contrary, entirely varied. Only those territories must be economically promoted and urgently kept in order in which considerable food and mineral oils can be rendered accessible for us. In other sections of the country, which cannot feed themselves-therefore in big sections of north and middle Russia-the economic operations must be limited to the available supplies.

Which mobilization factories are to be maintained or reconstructed, is reserved for later decision.

III. The individual fields consist of the following [Page 4]:

a. Food and agriculture:

1. The main assignments to be accomplished as soon as possible, is the uninterrupted supply of the German troops, in order thereby to relieve the supply situation in Europe and to ease the burden on the means of transport. The entire need of oats for the armed forces is to be taken care of from middle Russia, the main section for the growth of oats, insofar as it cannot be obtained from other occupied territories. In South-Russia it is to be achieved to feed barley and corn instead of oats.

2. The main weight in procuring of food stuff for the domestic economy has to be placed on grain and oil fruits. The surplus of the crop that can be obtained and stocks in the southern territories are to be secured by all means, the proper handling of the harvest is to be watched, the removal into agricultural deficient Middle and North Russia has to be stopped ruthlessly, insofar as exceptions are not ordered or made necessary in order to feed the troops.

b. The main weight as far as industrial raw materials are concerned, is to be placed on mineral oil. Under these measures, which do not serve the food management, all tasks connected with the production and shipment of mineral oil, will have first priority, by all means. For the execution of the decrees in the mineral oil field, especially to be issued for the Caucasus, the Continental Oil Company will be appointed.

c. The industries which provide for the functioning in the German interest, of agricultural production in surplus territories, the production of mineral oil and raw material production, are to be put into operation immediately.

d. In order to tackle the transportation problem in the German interest, particular attention is to be paid to

1. Street buildings in South territories and the thoroughfares,

2. The extension of the railroad tracks, especially the building of two track lines in the most important traffic districts,

3. The improvement of canals, unloading facilities in the inland waterways, especially in the North and South traffic,

4. Rebuilding of harbor facilities. * * *

Organisation of the Economy [Page 5]

A. General.

The Reichsmarschall has formed the "Wirtschaftsfuehrungsstab Ost" which is under his immediate jurisdiction and which will be run by Staatssekretaer Koerner, as his representative, for the uniform management of the Economy administration in the zone of operations and in administration districts, to be established later. For the representation of the military interests, for the preparation and for the duration of the military operations, the Chief of the War Economy and Armament Office, General of the Infantry Thomas, has the authority which he exercises as a Member of the Wirtschaftsfuehrungsstabes Ost.

The directives of the Reichsmarschall include all phases of the Economy incl. food and agriculture. They will be carried out by the subordinate economy agencies (see B).

The orders of the "Wirtschaftsfuehrungsstabes Ost" will be transmitted by the Chief of the Wi Rue office to the advanced "Wirtschaftsstab Ost" in the occupied territory which will be located during the operations in the vicinity of the OKH/Gen Qu.

B. Organization of the Economy in the zone of operations.

The subordinate Economy agencies of the "Wirtschaftsstab Ost" are, as far as they are active in the zone of operation, assigned to the Command agencies of the Army and militarily under their jurisdiction, namely:

a. In the rear area of the army:

One each economy inspection team with the Commanders of the army rear area,

One each of several economy Commands with the security divisions,

One group IV Wi each with the field administration headquarters.

b. in the Army zone:

One each group IV Wi [V.O. Wi Rue Office] with the AOK's [Army high commands]

One each group IV Wi with the field administration headquarters, who have advanced into the Army zone and who are under the jurisdiction of the AOK's, also in case of need, economy commands advanced into the Army zone militarily under the jurisdiction of the AOK's.

C. Organization of the Economy for the political Administration districts.

Regulation will follow later by the Reichsmarschall.

The execution of the economic detailed tasks [Page 9].

1. Within the food economy, the procurement of grain and oil containing plants is the foremost task. All measures for this will be taken with a view of long duration (bringing in of the harvest, safe storage, preparation and cultivation of the fields for autumn, to make available manpower and machines, the seed, fertilizer, throttling of the consumption of the domestic population. As much use as possible, is to be made of the setting up of simple community kitchens.)

The supplying of the troops from the land [Page 14].

As far as the troops have to be supplied from the land, attention is called to the following:

I. Food, Clothes, housing needs and consumer goods.

2. The food, housing, consumer goods and Clothes found in the zone of combat and in the rear areas, are in the first place at the disposal of IVa in order to satisfy the immediate needs of the troops. (notice par. 3)

3. In order to facilitate the possibility of transfer of food stocks at a later date, the required supplies for the immediate needs of the troops, are if possible not to be taken from stocks which are in a general favorable locality for the shipment to Germany. (At railroad stations and waterways, in harbor, especially baltic harbor, the border states, in the vicinity of the German borders.)

4. All food, housing, consumer goods and Clothes stocks which have not been taken over in the zone of combat and the Army rear areas by IVa and its agencies for the immediate use of the troops, will be put at the disposal of IV Wi, who thereby will be responsible for the care and Transfer to the economy agencies next in line.

5. In the Army rear area the economy agencies who are taking over the preliminary work done by IV Wi will be charged with reconnaissance, security and care of the food, housing, consumer goods and Clothes stocks. The assignment to the troops will be made through the Wi agencies to the permanent local food supply agencies, who will determine the requirements of all troops of the different branches and report them to the local competent economy agencies. These will regulate the supply demands.

II. Fuel and tires.

a. The troops will resort to the stocks found by them. Only in an emergency can be used:

a. stocks of the gas, water, electricity and mine facilities

b. gasoline and lubricants for farm and vital Industries

c. stocks of the motor tractor stations.

War-Booty, Services for pay, Army booty, prize [Page 19].

I. General.

1. Although according to the Hague Convention the entire movable property of the enemy country can be taken away without compensation, however for the time being only the movable property of the enemy army shall be treated as booty. Other movable property of the state may however be used by the troops in case of need, it is however to be treated as private property and to be paid for in case of use or acquisition.

2. The payment is to be made in case of values up to 1000 RM in Reichskassennotes, amounts exceeding 1000 RM by issuance of receipts.

Receipts may be issued by every agency in the rank of battalion or higher, unless exceptions have to be made due to a situation of the fighting or in case different directives have not been given by the OKH.

3. When taking over property for which there is no owner a receipt will be given to the Senior member of the community or a report will be made to the field administration headquarters.

4. With the establishment of the Field administration headquarters [Feldkommandanturen] and the permanent local economy agencies, the latter will be charged, in connection with the military agencies, with the procurement and making available the requirements of the troops from the Economy. In urgent cases the troops may even then secure their immediate needs independently. If possible, the local competent Field administration headquarters will be notified in such a case.

Raw materials, Management of goods [Page 23].

An exact regulated production and distribution of goods by interpolation of special merchandise pools will be out of question as far as the new territories to be occupied are concerned, with the exception perhaps of the Baltic states.

C. All raw materials, processed and half processed goods, useful to us will be withdrawn from the market. This will be initiated by IV Wi's and the economy agencies through suitable measures such as appeals and orders, through decrees for confiscation or through military guard or both.

Money and Credit system [Page 24].

2. Gold reserves and foreign currency are to be secured. Further action will be taken by the Economy command upon notification.

5. Reichskreditkassen will be established as soon as possible. They are personally and in fact under the jurisdiction of the Chief administration of the Reichskreditkassen in Berlin. The Reichskreditkassen are charged with the regulation of the Money and Credit system. They will discharge their duties with Reichskreditkassen notes which will be issued in 50, 20, 5, 2, 1 and 0.50 RM denominations. The Reichskreditkassen notes are legal tender along with the currency of the country. The ratio of the Reichsmark in relation to the currency of the Country will be fixed through decrees by the authorities in charge.

The Reichskreditkassen notes serve as well the purpose to keep the economy of the occupied country intact, as far as this is important for us in the interest of peace and order, as well as to satisfy and balance the money requirements of the German troops. The first will be achieved by granting credits to industrial and other enterprises also to financial institutions or also to state and district administrations, if the granting of credits is in the German interest (compare 3).

The financial institutions of the occupied countries are also to be induced to open accounts with the Reichskreditkassen.

The Army has been ordered to pay its troops, after they cross the border, only with Reichskreditkassen notes or with the currency of the country and to use German change only in the smallest denominations of 10, 5, 2 and 1 Reichspfenning if the foreign change is not available. The money in the hands of the soldiers at the time of the invasion, in the amount of more than 0.50 RM, has to be exchanged into Reichskreditkassen notes at the nearest Reichskreditkasse by the Finance office of the troops.

6. The Army has the order to see to it that the soldiers on their part pay in the occupied territory only with Reichskreditkassen notes or in the currency of the foreign country at the established rate of exchange. A decree will be issued in due time to the effect that in the occupied territory along with the currency of the foreign country, the Reichsmark in the form of Reichskreditkassen notes will also be a legal tender and what the rate of exchange will be.

7. The maintenance of the rate of exchange of the Reichskreditkassen notes is especially important. The way of their acceptance by the population is therefore carefully to be observed. Should any difficulties arise of the kind that the population refuses to accept Reichskreditkassen notes at all or only to another than the fixed rate of exchange, so if necessary it must be counteracted by punishment. The Economy agencies will report about such incidents.

To the maintenance of the rate of exchange pertains also that in case of subscription to forced loans and also when selling merchandise to the population not only the currency of the foreign country is demanded, but also Reichskreditkassen notes will be accepted at the rate of exchange by us.

9. The Reichskreditkassen will work in closest co-operation with the Economy agencies. They have, notwithstanding the fact that they are under the jurisdiction of the Chief administration of the Reichskreditkassen, to bring in line their measures with the intentions of the Economy inspector with regard to the Money and Credit system.

Foreign Trade and Exchange [Page 25].

1. General.

With regard to the question of Trade and Exchange between the occupied territories and third countries is to be taken into account, that all surplus of goods are in principle destined for German consumption. So far as removal is not possible, the goods will be, for the time being, stocked and secured, and be held ready for later removal. Therefore trade between the occupied territories and third countries is for the time being, fundamentally not possible. Directives for carrying on trade at a later date, with third countries in the interest of Germany, will be given as soon as the situation is clearer.

Price Control [Page 26].

A decree or announcement of a most simple character will prohibit the raise of prices and other compensations (also wages) and make it a punishable offense. This is only a temporary solution. A change of prices which are subject to political conditions will have to be considered.

For agricultural products, the following rates are fixed, which may not be exceeded in the occupied territories.

The IV Wi and the economy agencies will take care of their publication. Food purchases for the troops as well are to be made at the established prices only.

1. Field products, prices for 1 dz:
Wheat ............... 140 Ruble
Rye ................. 120 "
100% Grain .......... 145 "
Barley .............. 110 "
Oats ................ 120 "
Corn ................ 100 "
Peas ................ 160 "
Millet .............. 100 "
Buckwheat ........... 130 "
Potatoes ............ 50 "
Hay ................. 30 "
Straw ............... 15 "

2. Processed Products, prices for 1 dz:
80% Wheat flour ..... 200 Ruble
85% Rye flour ....... 155 "
Sugar ............... 400 "
3. Animals (living)
Cattle (for each dz.) .......... 500 Ruble
Hogs (for each dz.) ............ 600 "
Calves (for each dz.) .......... 250 "
Sheep (for each dz.) ........... 200 "
4. Dairy products
Milk (each 1.) ................. 1 Ruble
Butter (each kg.) .............. 44 "
Nazi Conspiracy and Aggression Volume IV
Office of the United States Chief Counsel for Prosecution of Axis Criminality
Washington, DC : United States Government Printing Office, 1946

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