Memorandum on Hitler's instructions on increasing the navy, with the use of Labor Front funds, noting the need for the navy to safeguard ore imports from Scandinavia if war occurred

Conversation with the Fuehrer on 2.11.34- at the time of the announcement by the Commanding Officer of the "EMDEN". [Memorandum of Raeder].
1. When I mentioned that the total funds to be made available for the Armed Forces for 1935 would presumably represent only a fraction of the required sum, and that therefore it was possible that the Navy might be hindered in its plans, he replied that he did not think the funds would be greatly decreased. He considered it necessary that the Navy be speedily increased by 1938 with the deadlines mentioned. In case of need, he will get Dr. Ley to put 120-150 million from the Labour Front at the disposal of the Navy, as the money would still benefit the workers. Later in a conversation with Minister Goering and myself, he went on to say that he considered it vital that the Navy be increased as planned, as no war could be carried on if the Navy was not able to safeguard the ore imports from Scandinavia.
2. Then, when I mentioned that it would be desirable to have 6 U-boats assembled at the time of the critical political situation in the first quarter of 1935, he stated that he would keep this point in mind and tell me when the situation demanded that the assembling should commence.*
* The order was not sent out. The first boats were launched1 in the middle of June 85 according to plan.