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MR. DODD: If Your Honor pleases, if I may go back for just a very little bit to take up the train of thought where I left off at the noon recess.

We were discussing the document, bearing the number D-203, and I had referred particularly to the third page of that document, and even more particularly to the second paragraph on that page; and I wish to read from a sentence approximately 8 or 10 lines down in that second paragraph, which reads as follows:

“The question of restoration of the Wehrmacht will not be decided at Geneva but in Germany, when we have gained internal strength through internal peace.”

I wish to refer again to the same page of the same document, and to the last paragraph and the last sentence, with reference to the Defendant Göring, who was present at that same meeting to which this document refers, the meeting of February 20, 1933 in Berlin. Göring said that the sacrifices asked for surely would be so much easier for industry to bear if it realized that the election of March 5th will surely be the last one for the next 10 years, probably even for the next 100 years.

In a memorandum dated the 22d day of February 1933, and for the information of the Court, in the document book bearing the number D-204, Gustav Krupp described this meeting briefly, and in the memorandum wrote that he had expressed to Hitler the gratitude of the 25 industrialists present at the meeting on February 20, 1933.

There are other expressions in that memorandum, which we do not deem to be particularly pertinent to the allegations of the Indictment with which we are now concerned. It is also to establish the corroboration of the affidavit of Puhl that the meeting was held.

I might point out to the Court that this memorandum, together with the report of the speech of Hitler, were found by the British and the United States armies in the personal files of the Defendant Krupp.

I am aware, if Your Honors please, that the method I am pursuing here is a little tedious, because I am trying to refer specifically to the documents, and particularly to the excerpts referred to in my remarks, and therefore this presentation differs very considerably from that which has gone before. I trust, however, that you will bear with me, because this part of the case requires some rather careful and detailed explanations.

In April of 1933, after Hitler had entrenched himself in power, Gustav Krupp, as chairman of the Reich Association of German Industry, which was the largest association of German industrialists, submitted to Hitler the plan of that Association for the reorganization of German industry, and in connection therewith, undertook to bring the Association into line with the aims of the conspirators, and to make it an effective instrument for the execution of their policies.

In a letter of transmittal, Krupp stated that the plan of reorganization which he submitted on behalf of the Association of industrialists, was characterized by the desire to coordinate economic measures and political necessity, adopting the Führer conception of the new German State. A copy of that letter of transmittal is set out in the document book under the Number D-157.

In the plan of reorganization itself, Krupp stated:

“The turn of political events is in line with the wishes which I myself and the board of directors have cherished for a long time. . . . In reorganizing the Reich Association of German Industry, I shall be guided by the idea of bringing the new organization into agreement with the political aims of the Reich Government.”

The ideas expressed by Krupp on behalf of the members of the Reich Association of German Industry for introducing the Leadership Principle into industry, were subsequently adopted.

I respectfully refer the Court to the Reichsgesetzblatt of 1934, Part I, Page 1194, Sections 11, 12, and 16.

Under the decree introducing the Leadership Principle into industry, each group of industry was required to have a leader who was to serve without compensation. The leaders were to be appointed and could be removed at the discretion of the Minister of Economics. The charter of each group was to be decreed by the leader, who was obligated to lead his group in accordance with the principles of the National Socialist State.

I think it is fair to argue that the introduction of the Leadership Principle into the organizations of business permitted the centralization of authority, and guaranteed the efficient execution of orders, which the Government issued to business, in the interest of a promotion of a war economy. And the overwhelming support given by German industrialists to the Nazi war program is very vividly described in a speech prepared by Gustav Krupp in January of 1944, for delivery at the University of Berlin; and I must again respectfully refer Your Honors to the document in your book bearing the identification Number D-317.

I shall not, of course, bore this court with a reading of that whole document, but I should like to quote from it without wrenching any of the material from its true context.

And this statement is found beginning in the third and the fourth paragraphs, being the first large paragraph on the first page:

“War material is lifesaving for one’s own people, and whoever works and performs in those spheres can be proud of it. Here, enterprise as a whole finds its highest justification of existence. This justification, I may inject this here, crystallized especially during the time of interregnum between 1919 and 1933, when Germany was dying down disarmed. . . .”

And further on:

“It is the one great merit of the entire German war economy that it did not remain idle during those bad years, even though its activity could not be brought to light for obvious reasons. Through years of secret work, scientific and basic groundwork was laid in order to be ready again to work for the German Armed Forces at the appointed hour without loss of time or experience.”

And further quoting from that same speech, and the last paragraph, particularly on the first page:

“Only through this secret activity of German enterprise, together with the experience gained meanwhile through production of peacetime goods, was it possible, after 1933, to fall into step with the new tasks arrived at, restoring Germany’s military power. Only through all that could the entirely new and various problems, brought up by the Führer’s Four Year Plan for German enterprise, be mastered. It was necessary to exploit new raw materials, to explore and experiment, to invest capital in order to make German economy independent and strong—in short, to make it war-worthy.”

Quoting even further from this same speech:

“I think I may state here that the German enterprises followed the new ways enthusiastically, that they made the great intentions of the Führer their own, by fair competition and conscious gratitude, and became his faithful followers. How else could the tasks between 1933 and 1939, and especially those after 1939, have been overcome?”

It must be emphasized that this secret rearmament program was launched immediately upon the seizure of power by the Nazi conspirators. On April 4, 1933 the Reich Cabinet passed a resolution establishing a Reich Defense Council. The function of this Council was secretly to mobilize for war; and at the second meeting of the working committee of the Councillors for Reich Defense, which was, by the way, the predecessor of the Reich Defense Council,—at that second meeting which was held on May 22nd of 1933, the chairman was the Defendant Keitel, then Colonel Keitel; and he stated that the Reich Defense Council would immediately undertake to prepare for war emergency. He stressed the urgency of the task of organizing a war economy, and announced that the Council stood ready to brush aside all of their obstacles. Fully aware of the fact that their action was in flagrant violation of the Treaty of Versailles, the Defendant Keitel emphasized the extreme importance of absolute secrecy when he said, and I quote from the document bearing the number EC-177, on Page 5 of that document. Colonel Keitel is speaking, and he said:

“No document ought to be lost, since otherwise it may fall into the hands of the enemies’ intelligence service. Orally transmitted matters are not provable; they can be denied by us in Geneva.”

The singleness of purpose with which the Nazi conspirators geared the German economy to the forging of a war machine is even further shown by the secret minutes of the sixth meeting of the working committee of the so-called Reich Defense Council, held on the 7th of February 1934, as shown in the document bearing the number EC-404, marked “Secret Command Matter”, and dated the 7th of February 1934. At this meeting, Lieutenant General Beck pointed out that: “The actual state of preparation is the purpose of this session.”

Parenthetically, I might say that on the first page of that document it appears that besides Lieutenant General Beck, the Defendant Jodl was present, then Lieutenant Colonel Jodl. There was a Captain Schmundt; and there was a Colonel Guderian there; and there was a Major General Von Reichenau; there was a Major Warlimont; and these are names that Your Honors will hear more of in the course of the presentation of this case.

Detailed measures of financing a future war were discussed and it was pointed out that the financial aspects of the war economy would be regulated by the Reich Finance Ministry and the Reichsbank, which was headed by the Defendant Schacht.

On May 31st of 1935—as stated earlier in this morning’s discussion—the Defendant Schacht was secretly appointed plenipotentiary-general of the war economy, and he had the express function of placing all economic forces of the nation in the services of the Nazi war machine.

By the secret defense law of May 21, 1935, under which Schacht received this secret appointment, he was in effect, given charge of the entire war economy. In case of war, he was to be virtual economic dictator of Germany. His task was to place all economic forces into the service for the conduct of the war and to secure economically the life of the German people. The Ministers of Economy, of Food, Agriculture, Labor, Forestry, as well as all Reich agencies directly under the Führer, were subordinated to him. He was to be responsible for the financing as well as for the conduct of the war; and he was even authorized to issue ordinances within his sphere of responsibility, even if these deviated from the existing laws.

The rearmament of Germany proceeded at an amazingly rapid pace. By the summer of 1935, the Nazi conspirators were emboldened to make plans for the reoccupation of the Rhineland; and at the tenth meeting of this same working committee of the Council, the question of measures to be taken in connection with the proposed reoccupation of the Rhineland were discussed.

I refer to the document bearing the number EC-405.

At that meeting, held on the 26th day of June 1935, it was said that the Rhineland required special treatment, because of the assurances given by Hitler to the French that no military action was being undertaken in the de-militarized zone. Among the matters requiring special treatment was the preparation of economic mobilization, a task specifically entrusted to the Defendant Schacht, as secret Plenipotentiary for the War Economy.

THE PRESIDENT: Are you reading from this document?

MR. DODD: I am quoting in part from it, Your Honor, and it is upon the document that I base my statements which can be found therein on Pages 4 and 5. I dislike annoying the Court with constant references to these documents, but I thought it would be the best way to proceed so as fully to inform the Court.

THE PRESIDENT: Well if you tell us where it is in the document we can follow it in the document.

MR. DODD: On Page 4, the middle of the page, the fifth paragraph, the first sentence: “The de-militarized zone requires special treatment.” And on Page 5, (j), under “the preparations,” “Preparation of economic mobilization.” On Page 4, the last paragraph just before the setting-out of the (a), (b), (c), and (d), it is said. . . .

THE PRESIDENT: I think you ought to read on Page 4, the last paragraph but one: “Since political entanglements. . . .”

MR. DODD: