SECRET
LF 1 .
Az. 57 hLF 1 No. 3398J39 secret
. Berlin 27 July 1939
Note on a conference on 25 July 1939 with the General - Field Marshal [Goering] in Westerland.
Present: Generaloberst Milch
State Secretary Koerner
State Secretary Neumann
State Secretary Dr. Landfried .
State Secretary v. Burgsdorf
Lt. Col. (Gen. Staff) Huenermann
Col. (Gen. Staff) Ploch ,
Min. Rat Mueller
Air Chief Staff Engineer Tschersich
Air Staff Engineer Diederichs .
Ob. Reg. Rat v. Wedelstedt and Lt. Col. Conrad Generalmajor Thomas
1. In a rather long statement the Field Marshal explained that the incorporation of Bohemia and Moravia into the German economy had taken place, among other reasons, to increase the German war potential by exploitation of the industry there. Letters, as the decree of the Reich Minister for Economics—S 10 402/39 of 10 July 39—as well as a letter with similar meaning to the Junkers firm, which might possibly lower the kind and extent of the armament measures in the Protectorate, are contrary to this principle. If it is necessary to issue such directives, this should be done only with his consent. In any case, he insists, in agreement with the directive by Hitler, that the war potential of the Protectorate is definitely to be exploited in part or in full and is to be directed towards mobilization as soon as possible.
Since, with full use of the industry of the Protectorate, difficulties of money transfer would exist until the change to the same
currency, a way out must be found. According to State Secretary Dr. Landfried the same procedure as in Slovakia might be applied, i.e. "Deposit of Reich treasury notes to cover the amounts of Kronen which are not balanced." But anyway, the change to Reichmarks is planned for 1 April 1940.
2. As regards the question of leaving foreign currency of export firms in the Protectorate, which was brought up by a letter of the Reich protector to the Field Marshal because of a sale of the firm Walter, the Field Marshal consented to its remaining in the Protectorate, provided it is used 100% for the furtherance of the German war potential. In this connection State Secretary v. Burgsdorf explained that two weeks ago a supervisory office for foreign currency traffic had been established in the Protectorate, whose activity could direct the use of foreign exchange. State Secretary Dr: Landfried proposed further to appoint a plenipotentiary for the Czech National Bank who should regulate the foreign exchange allotment for armament purposes only. State Secretary v. Burgsdorf was doubtful about this regulation. -
3. In order to arrange the mutual merchandise traffic for armament purposes with the least possible friction, the Field Marshal emphasized the necessity of leaving this merchandise free of duty.
4. The Field Marshal underscored first of all the following principle for export questions:
a. Investigation concerning necessity of secrecy
b. Investigation of the receiving country
c. Investigation of "what is offered"
d. Investigation of the own need for the merchandise to be given.
The offer to Italy regarding delivery of 88mm AA was outlined by the Field Marshal as follows:
Deliveries are only permissible to a certain extent after reaching the peak of capacity ordered for our purposes. It is necessary that Italy deliver to us the raw materials necessary for Italian deliveries, i.e. somewhat more than is necessary for production.
Concerning the various countries, the Field Marshal consented to the work on the following contracts on the basis of the talk by Ministerialrat Mueller, and made the following decisions respecting them:
a. Bulgaria: Delivery of 'Czech planes (about 148 and ground equipment) is to be made quickly. The contract for German equipment (10 Me-109 and 10 DO-215) can be worked on in 4-6, weeks, since Bulgaria cannot be excluded from this equipment because of the deliveries to Rumania and Yugoslavia.
R-133
b. Rumania and Yugoslavia: The Field Marshal was first informed that the Czech equipment is refused and that, due to the situation, the ordering countries cannot suffer postponement of the date of delivery to Spring 1940. Because of the special agreement concerning petroleum deliveries, the Field Marshal therefore permitted the planned contract with Rumania, i.e. delivery of the samples, which was announced already earlier to the Field Marshal, to begin in Autumn of this year. '
The Field Marshal makes the contract with Yugoslavia dependent on the answer to certain questions which had remained unanswered by the Prince Regent and the Yugoslav government resp. Concerning these he would write to the Prince Regent personally. They concern the fact that Yugoslavia did not leave the League of Nations, and fortification works at the Italian and German frontiers in the presence of French officers. However, he was not opposed to deliver at first 5 Me-109 to show our basic willingness. For the rest, the Field Marshal expressly empowered the Minis-teri'alrat Mueller to instruct the Yugoslav military attache in Berlin that his consent to the contract would have to depend on the reply to certain questions which he would transmit by letter to the Prince Regent.
e. Turkey: The Field Marshal made no negative decision regarding the delivery of five Me-109 to Turkey till the final clearance of the situation. His declarations about that were to be uhderstood thus: that the delivery could be made if it seemed opportune according to the situation.
Finally, the Field Marshal stated about the treatment of exports generally that the buying countries should be informed that the political situation had changed very markedly, and they would have to understand that Germany would now have to look out for itself first. The Recurring objections lately expressed by foreign countries about offers of English Spitfires, etc., should be answered in the vein that we are not angered by such buys, and that we could only recommend making them.
(signed) MUELLER
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