Minutes of the Conference of Heads of Departments, Held at the Reich Chancellery, on December 6, 1933, at 5:00 p. m. concerning foreign exchange.
Source: Documents on German Foreign Policy , series C vol.II p.179 Rk. 14025. BERLIN, December 6, 1933.
Present: Reich Chancellor Adolf Hitler, Foreign Minister Freiherr von Neirath, Reich Minister of Finance Count Schwerin von Krosigk, Reich Minister of Economics Dr. Schmitt, President of the Reichsbank Dr. Schacht, State Secretary Dr. Lammers, From the Foreign Ministry: Ministerialdirektor Dr. Ritter, Counsellor Bear, From the Reich Ministry of Finance: Ministerialdirigent Dr. Berger, From the Reich Ministry of Economics: State Secretary Feder, State Secretary Posse
Ministerialdirektor Sarnow, Ministerialrat Waldeck, Regierungsrat Dr. Hartenstein, The Commissioner for Economic Questions: Keppler, Ministerialrat Dr. Killy, Ministerialrat Dr. Willuhn as recording official Agenda:
Transfer questions.
The President of the Reichsbank reported on the foreign exchange situation and the volume of transfers. Half of the German exports were being paid for by domestic marks. For the other half foreign exchange was coming in. Besides, there were the so-called Jewish exports, which represented a flight of the capital of the Jews. Many German Jews were buying up commodities with the funds available to them and sending them abroad without delivering the foreign exchange. With regard to the interest and debt payments, one would have to decide whether the present system should be kept up and the present rate of transfers maintained, or a lower one be selected, or whether one intended to change over to another system. The decision on this rested with Germany alone. The Reichsbank had maintained contact with the foreign creditors. Representatives of the creditors in the various countries had from time to time been invited to Berlin by the Reichsbank. Actually they had no legal powers to represent the foreign creditors. But the fiction was maintained that they did have such powers of attorney. At this time they were again in Berlin. He was trying to bring it about that for the next six months there should again be a state of tranquillity. He would proceed at the negotiations in such a way that no difficulties would arise. Until recently the creditors in all the countries had tacitly accepted the present situation. But the special arrangements with the Dutch and Swiss creditors, to which Germany had agreed so as to escape the contemplated clearing procedures, had aroused violent resentment in other countries. This resentment also found expression in a note of the British Government, which was forwarded to the Foreign Ministry. The protests were coming chiefly from the creditors in England and the United States. The Governments of these two countries tacitly approved of the protest campaigns. The creditors in those countries felt themselves wronged. In yesterday's negotiations with the creditor representatives he, the President of the Reichsbank, had pointed out that he had no responsibility for the arrangements with Holland and Switzerland. He had referred both representatives to the Minister of Economics, who did confer with them. He was of the opinion that the contact with the foreign creditor representatives should be maintained in its present form. The agreements with Holland and Switzerland were in accord with the thesis laid down in London that debts from country to country could be discharged only by the delivery of goods.
The Minister of Economics stated that there were left to the Government only two ways of looking at this matter. Either the same quota would be allotted to all creditors, or Germany's large customers had to be given preferential treatment. But in practice great difficulties arose. The agreements with Holland and Switzerland made the position of the representatives of the creditors from the various countries difficult. He thought it advisable to negotiate with all the creditor representatives and only then to make special concessions to individual creditor countries. In this way support might be gathered against the Dutch and Swiss creditors. The Foreign Minister seconded the proposal of the Minister of Economics. The Reich Chancellor said that Germany would have no possibilities at all of making payments if the balance of payments between Germany and Switzerland and Germany and Holland were not so heavily against the two foreign countries. He also thought the proposal of the Reich Minister of Economics feasible and recommended its execution.
