Chapter IX: Part I: , Page 1203; Reichsgesetzblatt 1934, Part I, Page 295; and (2)

Schacht did continue, obviously still in full agreement with Hitler’s aggressive purpose. He was still President of the Reichsbank at the time of the taking of Austria in March 1938. In fact, the Reichsbank took over the Austrian National Bank. On this point I refer the Tribunal to _Reichsgesetzblatt_ 1938, Part I, Page 254, and ask that judicial notice be taken thereof. Further, Schacht even participated in the planning of the absorption of Austria. In this connection I introduce into evidence Document EC-421, Exhibit Number USA-645, consisting of excerpts from minutes of a meeting of the staff of General Thomas on 11 March 1938 at 1500 hours. I quote therefrom as follows:

“Lieutenant Colonel Hünerm reads directive of the Führer of 11
March concerning the ‘Action Otto’ and informs us that ‘The
Economy War Service Law’ has been put in force. He then reads
Directives 1 and 2 and gives special orders to troops for
crossing the Austrian borders. According to that, at Schacht’s
suggestion, no requisitions should be made but everything ought
to be paid for at the rate of 2 schillings to 1 Reichsmark.”

On the conversion of the Austrian schilling the Tribunal is asked also to take judicial notice of _Reichsgesetzblatt_ 1938, Part I, Page 405.

The Tribunal, of course, is already familiar with the public approval by Schacht of the Anschluss in his Vienna speech of 21 March 1938, and Your Honors will also recall Schacht’s pride in Hitler’s use of the rearmed Wehrmacht at Munich, as expressed in his speech of 29 November 1938. Both speeches were subsequent to his resignation in November 1937.

We come now to the removal of Schacht from the presidency of the Reichsbank in January 1939. The reason for this development is quite clear. Schacht lost confidence in the credit capacity of the Reich and was paralyzed, with the fear of a financial collapse. He felt that the maximum level of production had been reached, so that an increase in banknote circulation would only cheapen money and bring on inflation. In this attitude he ceased to be useful to Hitler, who was about to strike and wished to tap every ounce of available Government credit for military purposes.

I refer the Tribunal to Document EC-369, which I have previously submitted in evidence as Exhibit Number USA-631. This document is a memorandum from the Reichsbank directorate to Hitler, under date of 7 January 1939, in which Schacht reviews in detail his fears of inflation. The seriousness of the situation may be seen generally from the entire text. I wish to quote several of the more crucial statements, one from the last paragraph on Page 3, the second sentence:

“We are, however, faced with the fact that approximately 3
billion Reichsmark of such drafts cannot now be paid, though
they will be due in 1939.”

I quote from the upper half of Page 4:

“Exclusive of the Reichsbank there are approximately 6 billion
Reichsmark mefo drafts which can be discounted against cash
payment at any time at the Reichsbank, which fact represents a
continuous danger to the currency.”

And I quote finally from the concluding paragraph of the memorandum:

“We are convinced that the effects on the currency caused by the
policy of the last 10 months can be mended and that the danger
of inflation again can be eliminated by strict maintenance of a
balanced budget. The Führer and Reich Chancellor himself has
publicly rejected, again and again, an inflation as foolish and
fruitless.

“We therefore ask for the following measures:

“(1) The Reich as well as all the other public offices must not
incur expenditures or assume guaranties and obligations that
cannot be covered by taxes or by those funds which can be raised
through loans without disturbing the long-term investment
market.

“(2) In order to carry out these measures effectively, full
financial control over all public expenditures must be restored
to the Reich Minister of Finance.

“(3) The price and wage control must be rendered effective. The
existing mismanagement must be eliminated.

“(4) The use of the money and investment market must be at the
sole discretion of the Reichsbank.”

It is clear that Schacht’s fear was genuine and is a complete explanation for his departure from the scene. He had good reason to be afraid. In fact, the Finance Minister had already recognized the situation in September 1938. I refer the Tribunal to Document EC-419, Exhibit Number USA-621, which I have already submitted in evidence and which consists of a letter under date of 1 September 1938 from Krosigk to Hitler, in which Krosigk warns of an impending financial crisis. I quote from the bottom of Page 2.

THE PRESIDENT: Is that not really cumulative of what you have already read?

LT. BRYSON: We will be glad to skip it, Sir. It is cumulative.

Schacht was not only afraid of a financial crisis, but he was afraid that he personally would be held responsible for it. I offer in evidence an affidavit of Emil Puhl, a director of the Reichsbank and co-worker of Schacht, dated 8 November 1945, designated as Document EC-438, Exhibit Number USA-646, and I read therefrom, beginning at the bottom of the second page:

“When Schacht saw that the risky situation which he had
sponsored was becoming insoluble, he was more and more eager to
get out. This desire to get out of a bad situation was for a
long time the ‘Leitmotiv’ of Schacht’s conversation with the
directors of the bank.”

In the end Schacht escaped by deliberately stimulating his dismissal from the Presidency of the Reichsbank. I offer in evidence Document 3731-PS, Exhibit Number USA-647, consisting of excerpts from an interrogation of Von Krosigk under date of 24 September 1945, and I wish to read several statements beginning at the very bottom of the second page:

“I asked Mr. Schacht to finance for the Reich for the ultimo of
the month the sum of 100 or 200 millions. It was this quite
customary procedure which we had used for years, and we used to
give back this money after a couple of days. Schacht this time
refused and said that he was not willing to finance a penny
because he wanted, as he said, that it should be made clear to
Hitler that the Reich was bankrupt. I tried to explain that this
was not the proper ground to discuss the whole question of
financing because the question of financing very small sums for
a few days during ultimo never would bring Hitler to the
conviction that the whole financing was impossible. As far as I
remember now, it was Funk who told Hitler something about this
conversation; then Hitler asked Schacht to call upon him. I do
not know what they said but the result certainly was the
dismissal of Schacht.”

THE PRESIDENT: Just give me the reference again to that document that you were reading from.

LT. BRYSON: This is the interrogation of Von Krosigk under date of 24 September 1945. I wish to read further, continuing on Page 3:

“Q: ‘Now did Schacht ever say anything to you to the effect that
he wanted to resign because he was in opposition to the
continuance of the rearmament program?’

“A: ‘No, he never said it in this specific form, but in some
conversations he certainly spoke about it several times in his
own way when he had encounters with Göring . . . therefore I did
not take these things very seriously.’

“Q: ‘Well, let me put it this way, and please think carefully
about this. Did Schacht ever say that he wanted to resign
because he realized that the extent of the rearmament program
was such as to lead him to the conclusion that it was in
preparation for war rather than for defense?’

“A: ‘No, he never did.’

“Q: ‘Was Schacht ever quoted to you to this effect by any of
your colleagues or by anybody else?’

“A: ‘No.’

“Q: ‘Now, after Keitel took over the position of Chief of the
Wehrmacht were there still meetings between Schacht and yourself
with Keitel in place of Blomberg?’

“A: ‘Yes.’

“Q: ‘Did Schacht ever say anything at these meetings to indicate
that except for the technical question of the financing through
the Reichsbank directly he was opposed to a further program of
rearmament or opposed to the budget of the Wehrmacht?’

“A: ‘No, I do not think he ever did.’”

The Defendant Göring has also confirmed this testimony. I refer the Tribunal to the interrogation of Göring under date of 17 October 1945, this being Document 3730-PS, Exhibit Number USA-648. I read from the interrogation of Göring on 17 October 1945, from the lower half of the third page:

“Q: ‘I want to ask you this specifically. Was Schacht dismissed
from the Reichsbank by Hitler for refusing to participate any
further in the rearmament program?'

“A: ‘No, because of his utterly impossible attitude in this
matter regarding this advance, which had no connection with the
rearmament program.’”

Hitler dismissed Schacht from the Reichsbank on 20 January 1939. Without reading, I offer in evidence Document EC-398, Exhibit Number USA-649, consisting merely of a brief note from Hitler to Schacht announcing his dismissal.

From all of the foregoing it is clear that Schacht’s dismissal in no sense reflected a parting of the ways with Hitler on account of proposed aggression. This fact may also be seen from Document EC-397, Exhibit Number USA-650, consisting of Hitler’s letter to Schacht under date of 19 January 1939, the text of which I wish to read:

“At the occasion of your recall from office as President of the
Reichsbank Directorate I take the opportunity of expressing to
you my most sincere and warmest gratitude for the services which
you have rendered repeatedly to Germany and to me personally in
this capacity during long and difficult years. Your name, above
all, will always be connected with the first epoch of the
national rearmament. I am happy to be able to avail myself of
your services for the solution of new tasks in your position as
Reich Minister.”

In fact, Schacht continued as Minister without Portfolio until January 1943.

I wish to conclude by saying that the evidence shows: First, Schacht’s work was indispensable to Hitler’s rise to power and to the rearmament of Germany; second, Schacht personally was favorably disposed towards aggression and knew Hitler intended to and would break the peace; and, third, Schacht retired from the scene for reasons wholly unrelated to the imminence of illegal aggression.

As long as he remained in power, Schacht was working as eagerly for the preparation of aggressive war as any of his colleagues. He was beyond any doubt most effective and valuable in this connection. His assistance in the earlier phase of the conspiracy made their later crimes possible. His withdrawal from the scene reflected no moral feeling against the use of aggressive warfare as an instrument of national policy. He personally struggled to retain his position. By the time he lost it he had already completed his task in the conspiracy, namely, to provide Hitler and his colleagues with the physical means and economic planning necessary to launch and maintain the aggression. We do not believe that, having prepared the Wehrmacht for assault upon the world, he should now be permitted to find refuge in his loss of power before the blow was struck.

This concludes our case against the Defendant Schacht, and Lieutenant Meltzer follows me with the presentation of the American case against the Defendant Funk.

LIEUTENANT (j. g.) BERNHARD D. MELTZER (Assistant Trial Counsel for the United States): May it please the Tribunal, the documents bearing upon Defendant Funk’s responsibility have been assembled in a document book marked “HH,” which has been filed with the Tribunal and has also been made available to Defense Counsel. The same is true of the brief. The documents have been arranged in the book in the order of their presentation. Moreover, to facilitate reference, the pages of the document book have been numbered consecutively in red. I wish to acknowledge the invaluable collaboration of Mr. Sidney Jacoby, who sits to my right, in the selection and analysis of these documents.

We propose to submit evidence concerning five phases of Defendant Funk’s participation in the conspiracy:

First, his contribution to the Nazi seizure of power; second, his role in the Propaganda Ministry and in the related agencies and his responsibility for the activities of that ministry; third, his responsibility for the unrelenting elimination of Jews, first from the so-called cultural professions and then from the entire German economy; fourth, his collaboration in the paramount Nazi task to which all other tasks were subordinated—preparation for aggressive war; and finally, we propose to mention briefly the evidence concerning his active participation in the waging of aggressive war.

We turn now to the evidence showing that Defendant Funk actively promoted the conspirators’ accession to power and their consolidation of control over Germany. Soon after he joined the Nazi Party in 1931 Defendant Funk began to hold important positions, first within the Party itself and then within the Nazi Government. Funk’s positions have, in the main, been listed in Document Number 3533-PS, which is a statement signed by both Defendant Funk and his counsel. This document has been made available in the four working languages of these proceedings, and a copy in the appropriate language should be available in each of Your Honors’ document books. It is accordingly requested that this document, which is Exhibit Number USA-651, be received into evidence without the necessity of its being read in its entirety.

Your Honors will observe that there are some deletions and reservations after some of the items listed in Document Number 3533-PS. These were inserted by Defendant Funk. The words which he wished deleted are enclosed in parentheses. His comments are underscored and followed by asterisks.

We wished to avoid troubling the Tribunal with a detailed discussion of all these contested points. Accordingly, we collected in Document 3563-PS relevant excerpts from certain German publications. This document has also been made available in the four working languages. Moreover, we submit that the Tribunal can properly take judicial notice of the publications referred to in the document. However, in order to facilitate reference, we request that it be received in evidence as Exhibit Number USA-652.

In connection with Item “b” on the top of Page 1 of Document Number 3533-PS—Your Honors will find that on Page 1 of the document—Your Honors will observe that Defendant Funk has in effect denied that he was Hitler’s personal economic adviser in the 1930’s. However, the excerpts from the four German publications set forth on Pages 1 and 2 of Document Number 3563-PS directly contradict this denial.

We submit that it will be clear from the documents just referred to that Defendant Funk, soon after he joined the Party, began to operate as one of the Nazi inner circle. Moreover, as a Party economic theorist during its critical days in 1932, he made a significant contribution to its drive for mass support by drafting its economic slogans. In this connection I would refer to Document 3505-PS, which is a biography entitled, in the English translation, _Walter Funk—A Life for Economy_. This biography was written by one Oestreich in German and published by the Central Publishing House of the Nazi Party. I offer this document in evidence as Exhibit Number USA-653. I wish to quote now from Page 1 of the translation of this document, the center of the page. The corresponding page of the German document is Page 81:

“In 1931 he”—that is, Funk—“became a member of the Reichstag.
A document of his activity at the time is the ‘Economic
Construction Program of the NSDAP’ which was formulated by him
in the second half of the year 1932. It received the approval of
Adolf Hitler and was declared binding for all Gau leaders,
speakers on the subject, and Gau advisers on the subject and
others of the Party.”

Thus Defendant Funk’s slogans became the economic gospel for the Party organizers and spellbinders.

Defendant Funk, however, was much more than one of the Nazi Party’s economic theorists; he was also involved in the highly practical work of soliciting campaign contributions for the Party. As liaison man between the Party and the large German industrialists he helped place the industrialists’ financial and political support behind Hitler. Defendant Funk, in an interrogation conducted on 4 June 1945, admitted that he helped finance the highly critical campaign of 1932. I offer in evidence Document Number 2828-PS as Exhibit Number USA-654, and I quote from the bottom of Page 43. . .

THE PRESIDENT: Lieutenant Meltzer, isn’t this really all cumulative and detailed evidence to support what the Defendant Funk has already agreed with reference to his office? On Page 1 you have there the admission that he was a member of the Nazi Party, chief of the division of the Central Nazi Party, chairman of the committee of the Nazi Party on economic policy, and then it goes on from A to U with views of the various offices which he held and which he admits, he held. But surely to go into the details of those positions is unnecessary.

LT. MELTZER: If Your Honor pleases, the admission of the various positions listed do not, in our judgment, indicate in any way Defendant Funk’s participation in the fund-raising for the Nazi Party.

THE PRESIDENT: The fund-raising?

LT. MELTZER: The fund-raising. Now, it is a possible inference from those positions that he did engage in the solicitation of campaign contributions. However, it did seem to us relevant to mention most briefly direct evidence of that aspect of his activity.

THE PRESIDENT: Very well, if you say there is nothing in these offices which covered the matter you are going to deal with; well and good.

LT. MELTZER: Defendant Funk, in an interrogation conducted on 4 June 1945, admitted, as I said a minute ago, that he helped to finance this highly critical campaign.

THE PRESIDENT: You see, Lieutenant Meltzer, the heading that you have so conveniently given to us is that he contributed to the seizure of power. Well now, nearly every one of the headings A to U on Page 1, which he admits, is evidence that he contributed to seizure of power. Is it your object to propose that he also helped to raise funds? The contribution to the seizure of power is not in itself a crime; it is only a step.

LT. MELTZER: Very well, Your Honor. There is one aspect, however, of his activity in that regard which I should like to mention; that is, in connection with his fund-raising activities, he was present at a meeting in Berlin early in 1933.

I am referring to the document which records what went on in that meeting in order to point out that in the course of the meeting Hitler and Göring submitted an exposition of certain basic elements of the Nazi program. The reference to this meeting is found in Document 2828-PS, which Your Honors will find on Page 28 of the document book. I wish to quote the following question and answer:

“Q: ‘About 1933, we have been informed, certain industrialists
attended a meeting in the home of Göring before the election in
March. Do you know anything about this?’

“A: ‘I was at the meeting. Money was not demanded by Göring but
by Schacht. Hitler left the room, then Schacht made a speech
asking for money for the election. I was there as an impartial
observer, since I was friendly with the industrialists.’”

The character and importance of Funk’s work with the large industrialists is emphasized in the biography of Funk, which I referred to earlier, and I will simply invite Your Honors’ attention to the relevant pages of that book, which are 83 and 84.

THE PRESIDENT: I don’t understand why you read that passage. If you wanted to show that he was at the meeting, it would be merely sufficient to say that he was at the meeting. I don’t think those two sentences that you read help us in the very least.

LT. MELTZER: If the Tribunal please, those two sentences do not refer to the meeting. Those two sentences refer to the biography which sums up the Defendant Funk’s general contribution to the Nazi accession to power and I thought it might be of interest to the Tribunal to see the attitude of a German writer on this aspect of the defendant’s career.

THE PRESIDENT: It seems to me you referred to the meeting.

LT. MELTZER: I was referring Your Honors to Pages 32 and 33 of the document book, and to clarify this point may I read briefly from the biography:

“No less important than Funk’s accomplishments in the
programmatic field in the years 1931 and 1932 was his activity
at that time as the Führer’s liaison man to the leading men of
the German industry, trade, commerce, and finance. On the basis
of his past work his personal relations to the German economic
leaders were broad and far-reaching. He was now able to enlist
them in the service of Adolf Hitler and not only to answer their
questions authoritatively but to convince them and win their
backing for the Party. At that time that was terribly important
work; every success achieved meant a moral, political, and
economic strengthening of the vitality of the Party and
contributed toward destroying the prejudice that National
Socialism is merely a party of class hatred and class struggle.”

THE PRESIDENT: Again, I don’t see that that has helped the Tribunal in the least.

LT. MELTZER: After Funk had helped Hitler become Chancellor, as Press Chief of the German Government, he participated in the early Cabinet meetings, in the course of which the conspirators planned the strategy by which they would secure the passage of the Presidential Emergency Decree, which was passed on 24 March 1933. Funk’s presence at these meetings is revealed by Document 2962-PS which has already been received in evidence and by Document Number 2963-PS, offered as Exhibit Number USA-656. Your Honors will recall that this decree marked the real seizure of political power in Germany.

Soon after this the Defendant Funk assumed an important role in the Ministry of Propaganda. The record shows that the Ministry became one of the most important and vicious of Nazi institutions and that propaganda was fundamental to the achievement of the Nazi program within Germany and outside of Germany. We do not propose to review those matters to you but rather to present evidence showing, as we have said, that the Defendant Funk took a significant part in the propaganda operations.

The Ministry was established on 13 March 1933, with Goebbels as Chief and Defendant Funk as undersecretary, second in command.

As undersecretary Defendant Funk was not only Goebbels’ chief aide but was also the organizer of the large and complex propaganda machine. I wish to offer in evidence Document Number 3501-PS, which will be found on Page 47 of your document book as Exhibit Number USA-657. This document is an affidavit signed on 19 December 1945 by Max Amann, who held the position of Reich Leader of the Press and President of the Reich Press Chamber. I should like to read the second sentence of the first paragraph and the entire second paragraph:

“In carrying out my duties and responsibilities I became
familiar with the operation and the organization of the Reich
Ministry of Propaganda and Enlightenment. Funk was the soul of
the Ministry, and without him Goebbels could not have built it
up. Goebbels once stated to me that Funk was his ‘most efficient
man.’ Funk exercised comprehensive control over all of the media
of expression in Germany; over the press, the theater, radio,
and music. As Press Chief of the Government and later as
undersecretary of the Ministry, Funk held daily meetings with
the Führer and a daily press conference in the course of which
he issued the directives governing the materials to be published
by the German press.”

In addition to his position as undersecretary, Funk had many other important jobs in the Propaganda Ministry and in its subordinate agencies. These positions have already been listed in Document 3533-PS. I wish, however, to refer in particular to Funk’s position as vice-president of the Reich Chamber of Culture. This position was, of course, related to his functions in the Propaganda Ministry.

In his dual capacity he directly promoted two vital and related Nazi policies. The first was the regimentation of all creative activities in the interests of Nazi political and military objectives. The second was the complete elimination of Jews and dissidents from the so-called cultural professions. A full discussion of the methods by which these policies were effectuated has been included in the brief which was submitted as part of Document Book E. Accordingly, we will not go into that matter now unless the Tribunal wishes us.

In view of the Defendant Funk’s major role in the Propaganda Ministry, it is natural to find Nazi writers stressing his responsibility for the Nazi perversion of culture. In this connection, I will simply invite the Tribunal’s attention to Pages 94 and 95 of Oestreich’s biography, which has already been referred to.

After Defendant Funk left the Ministry of Propaganda and became Minister of Economics in 1938, he continued to advance the anti-Jewish program. For example, on 14 June 1938 he signed a decree providing for the registration of Jewish enterprises. This decree, which became the foundation for the ruthless economic persecution which followed, is found in the _Reichsgesetzblatt_, 1938, Part I, Page 627. It is requested that the Tribunal take judicial notice of this reference to the _Reichsgesetzblatt_ and all subsequent references. May I add that the brief on Defendant Funk gives the document numbers of translations of decrees and other German publications of which the Tribunal will be requested to take judicial notice.

THE PRESIDENT: Would that be a convenient time to break off?

LT. MELTZER: Yes, Your Honor.

THE PRESIDENT: Before we do so, Sir David Maxwell-Fyfe, I see that one of the counsel, Colonel Phillimore, I think, is proposing to call certain witnesses. The Tribunal would like to know who those witnesses are and what subject their evidence is going to deal with.

SIR DAVID MAXWELL-FYFE: Would the Tribunal like to know now? I would like to let them know, if it is convenient.

THE PRESIDENT: If you could, it would be convenient now.

SIR DAVID MAXWELL-FYFE: Yes. The first witness is Korvettenkapitän Moehle, who was a captain on Defendant Dönitz’ staff; and he will prove the passing on the Dönitz order of 17 September 1942. I think that is the main point that he deals with. I think he deals also with the destruction of some rescue ships, but that is the main point.

The second witness is Lieutenant Heisig. He will deal primarily with lectures of the Defendant Dönitz in which he advocated the destruction of the crews of merchant ships. That is the general effect of the evidence.

THE PRESIDENT: Thank you.

[_The Tribunal recessed until 1400 hours._]

_Afternoon Session_

THE PRESIDENT: Lieutenant Meltzer, are you intending to call any witnesses this afternoon?

LT. MELTZER: No, Sir. There is another member of the Prosecution, Sir, who I believe is intending to call a witness—Mr. Dodd.

THE PRESIDENT: In connection with the case against Funk?

LT. MELTZER: No, Your Honor.

THE PRESIDENT: Or in connection with the case against somebody else?

LT. MELTZER: Yes, Sir.

THE PRESIDENT: Who is it in connection with, Raeder?

LT. MELTZER: I believe Mr. Dodd might offer. . .

THE PRESIDENT: Raeder, is it?

LT. MELTZER: No, Sir. Mr. Dodd might offer a better explanation than I on the purpose of calling the witness.

THE PRESIDENT: Mr. Dodd?

MR. THOMAS J. DODD (Executive Trial Counsel for the United States): Yes, Sir. Your Honor, the witness is offered in connection with the Defendants Rosenberg, Funk, Frick, Sauckel, and Kaltenbrunner.

THE PRESIDENT: I see. The evidence relates to concentration camps, does it?

MR. DODD: It does, Your Honor.

THE PRESIDENT: I see.

MR. DODD: This witness would have been called at the time that we presented the other proof, except for the fact that he was before the military court at Dachau at that time and was not available.

THE PRESIDENT: I see; thank you.

LT. MELTZER: May it please the Tribunal, before we adjourned we were dealing with Defendant Funk’s role in the economic persecution of the Jews. As Your Honors will recall, in November of 1938 the death of Vom Rath in Paris was exploited by the Nazis as a pretext for intensifying the persecution of the Jews. The new policy was directed at the complete elimination of the Jews from the economic life of Germany. The evidence we will offer will show that Defendant Funk took a significant part in both the formulation and execution of that policy. In this connection I would refer the Tribunal to Document Number 1816-PS which is already in the Record. This document is a report of the meeting on the Jewish question. It will be found, Your Honor, on Page 52 of the document book. This meeting was held under Göring’s chairmanship on 12 November 1938. In opening the meeting, Defendant Göring stated—and I quote now from Page 1, Paragraph 1, of the translation; the corresponding page of the German document is also Page 1:

“. . . today’s meeting is of a decisive nature. I have received
a letter written by the chief of staff of the Führer’s Deputy,
Bormann, on the Führer’s orders directing that the Jewish
question be now, once and for all, co-ordinated and solved one
way or another.”

Defendant Funk came to this meeting well prepared. He had a law already drafted which he submitted with the following explanation—I quote again from Document 1816-PS, Page 15:

“I have prepared a law for this case which provides that as from
1 January 1939 Jews shall be prohibited from operating retail
stores and mail-order establishments as well as independent
workshops. They shall be further prohibited from hiring
employees for that purpose or offering any goods on the market.
Wherever a Jewish shop is operated, it is to be closed by the
police. From 1 January 1939 a Jew can no longer operate a
business in the sense of the law for the regulation of national
labor of 20 January 1934.”

I believe we may omit the rest. It is all in the same tenor.

THE PRESIDENT: Yes.

LT. MELTZER: The substance of Defendant Funk’s draft law promptly found its way into the _Reichsgesetzblatt_. On 12 November 1938 Defendant Göring signed a decree entitled, and I quote, “. . . for the Elimination of Jews from German Economic Life,” and in Section 4 he authorized Defendant Funk to implement the provisions of the decree by issuing the necessary rules and regulations. An examination of the provisions of this decree, which is set forth in the _Reichsgesetzblatt_ 1938, Part I, Page 1580, will reveal how well it deserved its title “. . . for the Elimination of the Jews from German Economic Life.”

Soon after the passage of the decree of 12 November, Defendant Funk delivered a speech on the Jewish question. He made it clear that the program of economic persecution was part of the larger program of extermination and he boasted of the fact that the new program insured the complete elimination of Jews from the German economy. I offer into evidence Document Number 3545-PS as Exhibit USA-659. This document, which is found on Page 76 of the document book, is a certified photostatic copy of Page 2 of the _Frankfurter Zeitung_ of 17 November 1938. I quote a very brief portion of that speech:

“State and economy constitute a single unit. They must be
directed according to the same principles. The best proof of
this is given by the most recent development of the Jewish
problem in Germany. One cannot exclude the Jews from political
life and yet let them live and work in the economic sphere.”

I shall omit the rest, with the request that the Tribunal take judicial notice of this reprint from the German newspaper, the _Frankfurter Zeitung_.

I wish, however, to refer to only one more decree, signed by Defendant Funk himself. On the 3rd of December 1938 he signed a decree which imposed additional and drastic economic disabilities upon the Jews and subjected their property to confiscation and forced liquidation. This decree is set forth in the _Reichsgesetzblatt_ 1938, Part I, Page 1709. Defendant Funk himself has admitted and deplored his responsibility for the economic persecution of the Jews. I offer into evidence Document Number 3544-PS, as Exhibit USA-660. This document, which is the last document in connection with this phase of the case, is an interrogation of Defendant Funk dated 22 October 1945. Your Honors will find it on Pages 102 and 103 of the document book. I wish to quote from Pages 26 to 27 of the interrogation. The corresponding page of the German translation is Page 21. Although I propose to quote enough to place Defendant Funk’s statements in their proper context, I do not, of course, intend to give any credence to his attempts at self-justification:

“Q: ‘All the decrees excluding the Jews from industry were
yours, were they not?’”

Now, omitting the first nine lines of the reply:

“A: ‘As far as my participation in this Jewish affair is
concerned, that was my responsibility, and I regretted later on
that I ever participated. The Party had always brought pressure
to bear on me to make me agree to the confiscation of Jewish
property, and I refused repeatedly. But later on, when the
anti-Jewish measures and the brutality against Jews were being
carried out with full force, something legal had to be done to
prevent the looting and confiscation of the whole of Jewish
property.’

“Q: ‘You knew that the looting and all that was done at the
instigation of the Party, didn’t you?’

“Here Defendant Funk wept and answered:

“‘That is when I should have resigned, in 1938. I am guilty. I
am guilty. I admit that I am a guilty party here.’”

In the Propaganda Ministry, Defendant Funk, as we have seen, helped solidify the German people in favor of war. When he moved on to his position as Minister of Economics, and to other positions which will appear, he used his talents even more directly for the conspirators’ main task: preparation for war. Immediately before Defendant Funk took over the Ministry of Economics from Defendant Schacht in 1938, there was a major reorganization of that ministry’s functions which integrated it with the Four Year Plan as the supreme command of the German military economy. This reorganization was effected by a decree, dated 4 February 1938, signed by Göring as Commissioner of the Four Year Plan. This decree is set forth in an official monthly bulletin issued by Göring and entitled, in the English translation, _The Four Year Plan_, Volume II, 1938, Page 105. It is requested that the Tribunal take judicial notice of this publication.

At this point I would simply note that that decree makes it clear that Defendant Funk assumed a critical role in the task of economic mobilization during a decisive period. Indeed, in 1938 he was directly charged with the task of preparing the German economy for war. By a secret decree he was made Plenipotentiary General for Economics and assumed the duties which once had been discharged by Defendant Schacht. In this connection I refer to Document 2194-PS, which has already been placed in evidence. This document, which is found on Page 111 of Your Honors’ document books, consists of a letter dated 6 September 1939, and that letter transmitted a copy of the Reich Defense Law of 4 September 1938. It is this enclosure that we wish to deal with now. I wish to quote from Page 4 of the translation, Paragraphs 2 to 4:

“It is the task of the GBW”—that is the Plenipotentiary General
for Economics—“to put all economic forces into the service of
the Reich defense and to safeguard economically the life of the
German nation. To him are subordinated: the Reich Minister of
Economics, the Reich Minister of Food and Agriculture, the Reich
Minister of Labor. . .” and so on.—“He is furthermore
responsible for directing the financing of the Reich defense
within the realm of the Reich Finance Ministry and the
Reichsbank.”

To quote one more paragraph:

“The GBW must fulfill the demands of the OKW which are of
essential importance for the Armed Forces and must ensure the
economic conditions necessary for the production of the armament
industry directly managed by the OKW, according to the
requirements of the latter.”

This law, in essence, re-enacted the provisions previously passed in the Reich Defense Law of 1935, and I will not trouble the Tribunal with further reading. I do wish to note, however, that the law was, at the specific direction of Hitler, kept secret and that it was signed by Defendant Funk, among others, as Plenipotentiary General for Economics. Your Honors will find Defendant Funk’s signature on the next to the last page of the document, and I invite your attention to the names of his co-signers.

Defendant Funk, in a speech which he delivered on 14 October 1939, explained how, as Plenipotentiary General for Economics, he had for a year and a half prior to the launching of the aggression against Poland, advanced Germany’s economic preparations for war. I offer into evidence Document Number 3324-PS as Exhibit USA-661. This document is a German book by Berndt and Von Wedel entitled, in the English translation, _Germany in the Fight_. That book reprints the defendant’s speech. I quote now from Page 2 of the translation of Document Number 3324-PS, which is found on Page 116 of the document book. The translation of this speech is somewhat awkward, and with the Tribunal’s permission I would rephrase it somewhat without changing its substance in the slightest.

“Although all economic and financial departments were harnessed
to the task of the Four Year Plan under the leadership of
General Field Marshal Göring, Germany’s economic preparation for
war was also secretly advanced in another sector for well over a
year, namely, through the formation of a national guiding
apparatus for special war economy tasks which would have to be
accomplished the moment that war became a fact. For this work
all economic departments were combined into one administrative
authority, the Plenipotentiary General for Economics, to which
position the Führer appointed me one and a half years ago.”

THE PRESIDENT: What was the date of that?

LT. MELTZER: The date of that speech, Sir, is 14 October 1939.

In his dual capacity as Plenipotentiary General for Economics and Minister of Economics, Defendant Funk was naturally advised of the requirements which the conspirators’ program of aggression imposed on the German economy. In this connection I would invite the Tribunal’s attention to Document Number 1301-PS, which is already in evidence. As Your Honors will recall, this document is a top secret report of the conference held in Defendant Göring’s office on 14 October 1938. Your Honors will find it on Page 142 of the document book. I shall simply summarize the relevant portions of this document.

During the conference Göring referred to the world situation and to Hitler’s directive to organize a gigantic armament program. He thereupon directed the Ministry of Economics to increase exports in order to obtain the foreign exchange necessary for stepping up armament. He added, as Your Honors will recall, that the Luftwaffe must be increased five-fold, that the Navy should arm more quickly, and that the Army should accelerate the production of weapons for attack. Defendant Göring’s words directed at Funk, among others, were the words of a man already at war; and his emphasis on quintupling the Air Force and on weapons for attack was that of a man waging aggressive war.

After Schacht’s departure Funk was a key figure in the preparation of plans to finance the war. This was natural, since Defendant Funk after 1939 occupied three positions crucial to war finance. Two we have already named: Minister of Economics and Plenipotentiary General for Economics. In addition, he was President of the Reichsbank.

Funk’s role in war financing is illustrated by Document Number 3562-PS, which I now offer in evidence as Exhibit USA-662. This document was found in the captured files of the Reich Ministry of Economics. It consists, in part, of a letter from the Plenipotentiary General for Economics, signed on his behalf by Dr. Posse. The letter is dated 1 June 1939 and encloses the minutes of a conference concerning the financing of the war which was held under the chairmanship of Funk’s undersecretary in the Ministry of Economics, Dr. Landfried. A copy of the document which I have offered into evidence bears a marginal note on Page 1 in the bottom lefthand corner, dated 5 June, stating, and I quote: “To be shown to the Minister,”—that is, Funk—“for his information.”

During the course of the meeting, which was attended by 12 officials, five of whom were directly responsible to Defendant Funk in his various capacities, the conferees discussed a memorandum regarding war finance which had been prepared by the Plenipotentiary General for Economics on May 9, 1939. I wish to quote briefly from Page 2 of the English translation, which is found on Page 153 of Your Honors’ document book:

“Then a report was made of the contents of the ‘Notes on the
question of Internal Financing of War’ of 9 May of this year, in
which the figures given to me by the Reich Minister of Finance
were also discussed. It was pointed out that the Plenipotentiary
General for Economics is primarily interested in introducing
into the legislation for war finance the idea of financing war
expenditures by future revenues to be expected after the war.”

And, if I may quote another brief excerpt from this important memorandum, which is found on Page 2 of the English translation, Page 153 of your document books:

“State Secretary Neumann first submitted for discussion the
question of whether, in case of war, production would be able to
meet, to the extent supposed, the demands of the Armed Forces,
especially if the demands of the Armed Forces, as stated in the
above report, should increase to approximately 14,000 millions
in the first 3 months of war. He stated that if the production
potential of the present Reich territory is taken as a basis he
doubts the possibility of such an increase.”

It is plain then that Defendant Funk exercised comprehensive authority over large areas of the German economy whose proper organization and direction were critical to effective war preparation. The once powerful military machine which rested on the foundation of thorough economic preparation was a tribute to the contribution which Defendant Funk had made to Nazi aggression.

And Funk made this contribution with full knowledge of the plans for military aggression. A compelling inference of such knowledge would arise from the combination of several factors: From Funk’s long and intimate association with the Nazi inner circle; from the very nature of his official functions; from the war-dominated setting of Nazi Germany; from the fact that force and the threat of force had become the primary and the open instruments of German foreign policy. And the final element in weighing the question of Defendant Funk’s knowledge is, of course, the fact that, at the same time that Defendant Funk was making economic preparation, specific plans for aggression were being formulated—plans which were carried out and plans which could be effectively carried out only if they were synchronized with the complementary economic measures.

The conclusion concerning Defendant Funk’s knowledge is reinforced beyond any question by considering, in the light of the factors described above, the more specific and direct evidence which has already been placed into the Record. We have seen from Document 1760-PS that Defendant Funk had told Mr. Messersmith that the absorption of Austria by Germany was a political and economic necessity, and that it would be achieved by whatever means were necessary. We have already referred to Document Number 1301-PS, in which Defendant Göring laid down directives which could be understood only as directives to prepare the economic basis for aggression. And Document Number 3562-PS has revealed that Defendant Funk was making detailed plans for financing the war, that is, of course, a particular war, the war against Poland. In this connection I wish to refer to another vital piece of evidence which has already been introduced in the Record. It is the letter dated 25 August 1939 which Defendant Funk wrote to Hitler. In that letter, as Your Honors will recall, Defendant Funk expressed his gratitude at being able to experience those world-shaking times and to contribute to those tremendous events. And he thanked Hitler for approving his proposals designed to prepare the German economy for the war.

Moreover, the Record contains evidence showing that Defendant Funk, both personally and through his representatives, participated in the economic planning which preceded the military aggression against the Soviet Union. I would refer the Tribunal to Document 1039-PS, which revealed that in April of 1941 Defendant Rosenberg, who had been appointed deputy for the centralized treatment of problems related to the occupation of the Eastern territories, that is, the Soviet Union, discussed with Defendant Funk the economic problems which would arise when the plans for aggression in the East matured. And Document 1039-PS also reveals that Defendant Funk appointed one Dr. Schlotterer as his deputy to collaborate with Rosenberg in connection with the exploitation of the Eastern territories and that Schlotterer met with Defendant Rosenberg almost daily.

It is clear, then, that Defendant Funk participated in every phase of the conspirators’ program, from their seizure of power to their final defeat. Throughout he worked effectively, if sometimes more quietly than others, on behalf of the Nazi program, a program which from the very beginning he knew contemplated the use of ruthless terror and force within Germany and, if necessary, outside of Germany. He bears, we submit, a special, a direct, and a heavy responsibility for the commission of Crimes against Humanity, Crimes against Peace, and War Crimes. The Record makes it clear, if we may summarize the evidence, that by virtue of his activities in the Ministry of Propaganda and in the Ministry of Economics he is responsible for stimulating and engaging in the unrelenting persecution of the Jews and other minorities, for psychologically mobilizing the German people for aggressive war, and for weakening the willingness and capacity of the conspirators’ intended victims to resist aggression. It is also clear, we submit, that Defendant Funk, with full knowledge of the conspirators’ purposes, in his capacity as Minister of Economics, President of the Reichsbank, and Plenipotentiary General for Economics, actively participated in the mobilization of the German economy for aggression. In these capacities and as a member of the Ministerial Council for Defense and the Central Planning Board he also participated in the waging of aggressive war. Moreover, by virtue of his membership in the Central Planning Board, which, as Your Honors will recall from Mr. Dodd’s presentation, formulated and directed the program for the enslavement, the exploitation, and degradation of millions of foreign workers, Defendant Funk also shares special responsibility for the Nazi slave-labor program.

The French Prosecution, I am informed, will deal with this matter in greater detail. Moreover, the French and Soviet Prosecution will submit evidence showing that Defendant Funk actively participated in the program for the criminal looting of the resources of occupied territories.

MR. DODD: May it please the Tribunal, we would like to call at this time the witness, Dr. Franz Blaha.

[_The witness, Blaha, took the stand._]

THE PRESIDENT [_To the witness_]: Is your name Franz Blaha?

DR. FRANZ BLAHA (Witness) [_In Czech._]: Dr. Franz Blaha.

THE PRESIDENT: Will you repeat this oath: “I swear by God—the Almighty and Omniscient—that I will speak the truth, the pure truth—and will withhold and add nothing.”

[_The witness repeated the oath._]

THE PRESIDENT: You can sit down if you wish.

MR. DODD: You are Dr. Franz Blaha, a native and a citizen of Czechoslovakia, are you not?

BLAHA: [_In Czech._] Yes.

MR. DODD: I understand that you are able to speak German, and for technical reasons I suggest that we conduct this examination in German, although I know your native tongue is Czech; is that right?

BLAHA: [_In Czech._] In the interest of the case I am willing to testify in German for the following reasons: 1. For the past 7 years, which are the subject of my testimony, I have lived exclusively in German surroundings; 2. A large number of special and technical expressions relating to life in and about the concentration camps are purely German inventions, and no appropriate equivalent for them in any other language can be found.

MR. DODD: Dr. Blaha, by education and training and profession you are a doctor of medicine?

BLAHA: [_In German._] Yes.

MR. DODD: And in 1939 you were the head of a hospital in Czechoslovakia?

BLAHA: Yes.

MR. DODD: You were arrested, were you not, by the Germans in 1939 after they occupied Czechoslovakia?

BLAHA: Yes.

MR. DODD: And were you confined in various prisons between 1939 and 1941?

BLAHA: Yes.

MR. DODD: From 1941 to April of 1945 you were confined at Dachau Concentration Camp?

BLAHA: Yes, until the end.

MR. DODD: When that camp was liberated by the Allied Forces?

BLAHA: Yes.

MR. DODD: You executed an affidavit in Nuremberg on the 9th day of January of this year, did you not?

BLAHA: Yes.

MR. DODD: This affidavit, if it please the Tribunal, bears the Document Number 3249-PS, and I wish to offer it at this time. It is Exhibit USA-663. I feel that we can reduce the extent of this interrogation by approximately three-fourths through the submission of this affidavit and I should like to read it. It will take much less time to read this affidavit than it would to go through it in question and answer form and it covers a large part of what we expect to elicit from this witness.

THE PRESIDENT: Very well.

MR. DODD: I wouldn’t have read it if we had had time to have a Russian and French translation, but unfortunately that wasn’t possible in the few days we had.

“I, Franz Blaha, being duly sworn, depose and state as follows:

“1. I studied medicine in Prague, Vienna, Strasbourg, and Paris
and received my diploma in 1920. From 1920 to 1926 I was a
clinical assistant. In 1926 I became chief physician of the
Iglau Hospital in Moravia, Czechoslovakia. I held this position
until 1939 when the Germans entered Czechoslovakia and I was
seized as a hostage and held a prisoner for co-operating with
the Czech Government. I was sent as a prisoner to the Dachau
Concentration Camp in April 1941 and remained there until the
liberation of the camp in April 1945. Until July 1941 I worked
in a punishment company. After that I was sent to the hospital
and subjected to the experiments in typhoid being conducted by
Dr. Muermelstadt. After that I was to be made the subject of an
experimental operation and succeeded in avoiding this only by
admitting that I was a physician. If this had been known before,
I would have suffered, because intellectuals were treated very
harshly in the punishment company. In October 1941 I was sent to
work in the herb plantation and later in the laboratory for
processing herbs. In June 1942 I was taken into the hospital as
a surgeon. Shortly afterwards I was directed to perform a
stomach operation on 20 healthy prisoners. Because I would not
do this I was transferred to the autopsy room where I stayed
until April 1945. While there I performed approximately 7,000
autopsies. In all, 12,000 autopsies were performed under my
direction.

“2. From the middle of 1941 to the end of 1942 some 500
operations on healthy prisoners were performed. These were for
the instructions of the SS medical students and doctors and
included operations on the stomach, gall bladder, and throat.
These were performed by students and doctors of only 2 years’
training, although they were very dangerous and difficult.
Ordinarily they would not have been done except by surgeons with
at least 4 years’ surgical practice. Many prisoners died on the
operating table and many others from later complications. I
performed autopsies on all of these bodies. The doctors who
supervised these operations were Lang, Muermelstadt, Wolter,
Ramsauer, and Kahr. Standartenführer Dr. Lolling frequently
witnessed these operations.