[_Turning to the witness._] And this, Witness—and please confine your

answer to this letter only—is a letter which you once wrote to Field

Marshal Milch and which was submitted, I think, by the French

Prosecution as Exhibit RF-675, (Document Number RF-675). In this letter,

Herr Funk, you apologized for participating so very infrequently in the

meetings of the Central Planning Board. And at that time you sent two

experts from your ministry to the session, that is, two experts in the

field of administrating civilian supplies and of the export trade. As

deputy of your State Secretary, Dr. Hayler, who will be called later as

a witness, a certain Ohlendorf participated at this meeting of the

Central Planning Board. You have already seen this man, Ohlendorf, in

this courtroom on the witness stand. I should be interested to know what

were the functions of this man Ohlendorf who apparently belonged to your

ministry.

FUNK: As far as the negotiations of the Central Planning Board were

concerned, I was essentially interested only in the fact that in that

meeting the necessary raw materials were allocated for the

administration of consumer goods and the export trade. For that reason

Ohlendorf and two other experts for the administration of consumer goods

and the export trade were sent to the meeting. Ohlendorf was brought

into my Ministry by State Secretary Hayler. Before that I had only known

Ohlendorf vaguely from one or two meetings and I had had an

extraordinarily favorable impression of him, for he had an extremely

lucid mind and could always express his thoughts in a most impressive

way. Before that time I didn’t even know that Ohlendorf had another

position in the Reich Security Main Office, for he was introduced to me

as a manager of the Main Organization for German Trade. Hayler was the

chief of this organization, of the Reichsgruppe Handel, and Ohlendorf

was his manager and was introduced to me as such. Therefore I had no

objections to Ohlendorf being brought into the ministry and taking over

that field which corresponded to his private business activities up to

now—the province of administration of consumer goods.

Then through Hayler I discovered that Ohlendorf was active also in the

RSHA—or whatever the name is—as an office chief in the SD. However, I

took no exception to this activity, for I was not fully acquainted with

these assignments and in any case I was not convinced that anything was

taking place which was unacceptable for the Ministry. Ohlendorf was

active chiefly as manager of the Reichsgruppe Handel. As far as I know,

he only had an auxiliary occupation in the RSHA, or however it was

called. Naturally I was very much affected and painfully surprised when

I heard here about assignments which Ohlendorf with his “Einsatzstab”

had had in previous years in Russia. I had never heard one word about

this activity of Ohlendorf. He himself never mentioned these things to

me and until this time I did not know the type of assignments such

“Einsatzstäbe” had.

Ohlendorf never talked about his activity in the SD. Hayler, who knew

him much better and more intimately than I did, is better qualified to

give information. In any event I knew nothing of this activity of

Ohlendorf, which after all he had carried on in years prior to this

date, and I was very much affected to find that this man had done such

things.

DR. SAUTER: Witness, I must ask you to state your position in regard to

the testimony given by another witness, whom we have seen and heard in

this courtroom. This witness is Dr. Blaha, who made a report in this

courtroom about the conditions in the concentration camp at Dachau and

who testified—as you probably will recall—that in and around Dachau it

was common talk that the Reich Minister of Economics, Dr. Funk, had also

been present at one of these official visits to the camp. As you recall,

this witness replied to my question that he himself had not seen you,

but that your name had been mentioned in this connection by other

inmates. Were you ever at Dachau or at any other concentration camp?

FUNK: No, I was neither at Dachau nor in any other concentration camp.

DR. SAUTER: Can you say that with a clear conscience under your oath?

FUNK: Yes.

DR. SAUTER: The witness, Dr. Blaha, has also testified to the fact that

this inspection of Dachau took place following a discussion among the

finance ministers which had taken place at Berchtesgaden or Reichenhall,

or somewhere in that vicinity. Therefore I ask you: Did you ever

participate in a meeting of finance ministers, or at least at the time

Blaha claims?

FUNK: No, I never participated in a meeting of finance ministers,

because I myself was never such a minister. And at that time I did not

participate in any international discussions at all. No.

DR. SAUTER: Dr. Funk, as far as your health is concerned, this is not a

good day for you. You have complained about the bad pains which you are

suffering today. Consequently, I do not wish to put any further

questions to you, except one in conclusion, which I am sure you will be

able to answer briefly.

Why did you remain in your office as Reich Minister of Economics and as

President of the Reichsbank until the very end?

FUNK: I considered myself bound to remain in this position as long as I

could, in order to serve and be of use to my people. It was precisely

during the last few years of the war that my position was a very

difficult one. The administration became greatly disorganized and I had

to make exceptional efforts in order to procure supplies for the people,

especially those who had been bombed out. I continually had to protect

the supplies and supply depots from arbitrary seizures by the Gauleiter.

In the case of one Gauleiter, I had to call the police. I did not follow

the “scorched earth” policy which the Führer had decreed, so that even

after occupation by the enemy powers the supplies which were left could

be used by the German people.

I had had instructions from the Führer to issue a decree according to

which the acceptance of allied invasion currency would be high treason

and punishable by death. I did not issue that decree. I made every

effort to prevent State property and State money from being destroyed

and wasted. I saved the gold deposits and foreign exchange deposits of

the Reichsbank which were in the greatest danger. Briefly, until the

last minute I believed it was my duty and responsibility to carry on in

office and to hold out until the very end. Especially when we Germans

learned that, according to the Morgenthau Plan, the status of the German

people was to be degraded into that of shepherds and goatherds; that the

entire industry would be destroyed, which would have meant the

extermination of 30 million Germans. And especially after Churchill had

declared personally that the German people would suffer from hunger and

that epidemics would break out, only one thing was possible for me and

for every decent German, and that was to remain at his post and do

everything within his power in order to prevent this chaos.

I had no talent for being a traitor or a conspirator, but I always loved

my fatherland passionately and my people as well, and up to the end I

tried to do everything possible to serve my country and my people and to

be of use to them.

DR. SAUTER: Mr. President, perhaps in connection with this alleged visit

to a concentration camp I might refer to a questionnaire which we

received from the witness Dr. Schwedler, and which is found in the

supplementary volume for the Funk case as Document Number 14. This

affidavit, of the contents of which I would like to have you take

official notice, essentially confirms that, since 1 February 1938, the

witness Dr. Schwedler was the daily companion of the Defendant Funk;

that Dr. Funk never visited a concentration camp; and that the witness

would have to know of it if it were the case.

With these words, Mr. President, I conclude my examination of the

Defendant Funk. I thank you very much.

THE PRESIDENT: Do any of Defendants’ Counsel wish to ask questions?

Dr. Sauter, you said you were referring to an affidavit of Dr.

Schwedler? Which was Number 14? You said you were referring to Dr.

Schwedler’s affidavit which you said was Number 14 in your supplementary

book. It does not seem to be in ours.

DR. SAUTER: I beg your pardon, Mr. President, it is Number 13. I made a

mistake. It is Number 13; in the supplementary volume, Number 13, Dr.

August Schwedler. It is a questionnaire.

DR. OTTO NELTE (Counsel for Defendant Keitel): Witness, I have one

question which I would like to put to you. The Prosecution has accused

the Defendant Keitel as chief of the OKW, you as Plenipotentiary for the

Economy and Minister Frick as Plenipotentiary for Administration, on a

common ground. The men in these three offices are mentioned in the Reich

Defense Law of 1938. Undoubtedly, they probably exerted certain

functions which might be of significance. The Prosecution in this

connection spoke of a Three Man College and attributed much authority

and significance to this Three Man College in connection with the point

the Prosecution is making of the planning and preparation of aggressive

wars.

Now I ask you: Was there such a Three Man College and what were the

functions of these three offices which have been mentioned, according to

the Reich Defense Law?

FUNK: Due to the confusion reigning in the German administration we

ourselves could scarcely keep things straight; so it is not surprising

if the Prosecution is in error on this point. I myself never heard of

this three-man committee or Three Man College until this proceeding. I

did not know that I belonged to such a three-man committee or Three Man

College or triumvirate or anything else. On the basis of the Reich

Defense Law similar powers were given to the Chief of the OKW, to the

Plenipotentiary for Administration and to the Plenipotentiary for

Economics. These three, in deviation from the existing laws, could issue

directives in which they had mutually to participate.

But it was the purport of this order that these directives could only be

of a subordinate nature, which on the whole applied solely to the sphere

of activity of the offices involved. Legislation for more important

matters was made either by the Ministerial Council for Defense of the

Reich—later only by way of circulating the bill from one minister to

the other—or by Führer decrees. As far as I know there were only three,

four, or five meetings of this body. Later, the decrees of the Führer

were the real, the essential way of issuing laws. They were issued by

the Führer personally, and the offices involved were frequently only

informed of the same. Therefore the three-man committee is only a

fiction.

DR. NELTE: Thank you. I have no further questions.

DR. DIX: Dr. Funk, you spoke of the law for the regulation of national

labor and you said that that law was issued under your predecessor. You

spoke about “my predecessor.”

FUNK: No, you are wrong; I said “predecessors.”

DR. DIX: Predecessors. Can you tell the Tribunal under which Reich

Minister of Economics that was issued?

FUNK: This law was issued under Reich Minister of Economics Dr. Schmitt,

as far as I remember. And the subsequent agreement with the German Labor

Front probably took place in part under Schacht. I particularly remember

the so-called Leipzig Resolutions.

DR. DIX: Then you also mentioned that there was an office subordinate to

Schacht as Plenipotentiary for War Economy. You will remember that the

witness Vocke denied the existence of such an office of Schacht’s as

Plenipotentiary of War Economy, and Schacht did the same thing. Which

office did you mean? Describe the office that you mean.

FUNK: It was not an office in the sense in which it might have been

interpreted here. It was a committee of experts of the various

departments which was led by the representative of the Plenipotentiary

for War Economy, who was Schacht, and later by my representative as

Plenipotentiary for War Economy. Under Schacht’s term of office it was

State Counsellor Wohlthat and in my term of office it was Schacht’s

former State Secretary, Posse.

DR. DIX: Certainly. Now is it identical with the working committee which

originated on the basis of the old Reich Defense Law and which existed

before 1933?

FUNK: I am not familiar with that.

DR. DIX: In any event, this working committee was composed of the

various departments?

FUNK: Yes.

DR. DIX: Together with the OKW?

FUNK: With the OKW, with the Ministry of the Interior, and later, with

the decisive participation of the Four Year Plan representative.

DR. DIX: And the expert for Schacht during Schacht’s term was Dr.

Wohlthat?

FUNK: As far as I know, yes.

DR. DIX: Then one more question. You talked about the so-called

triumvirate with reference to a question by my colleague for the

Defendant Keitel. The creation of the triumvirate, this activity which

you have described, was after Schacht’s time, I believe.

FUNK: Yes, I believe so. But there was no activity.

DR. DIX: No.

FUNK: I never participated in any session of the so-called Three Man

College.

DR. DIX: No. You said it was a fiction.

FUNK: Furthermore, no meeting of these three men ever took place.

DR. DIX: No; you said it was a fiction.

DR. ROBERT SERVATIUS (Counsel for Defendant Sauckel): I have a question

regarding the wages of the foreign workers. Did Sauckel make any special

efforts in connection with the transfer of the wages? Do you know

anything about that?

FUNK: Yes. Sauckel insisted very frequently at the Reichsbank and the

Reich Ministry for Economics that there should be a large-scale transfer

of wages to foreign countries and the occupied territories. Naturally we

were in a very difficult position here, because especially in the

southeastern European countries the currencies had been greatly

devaluated, and the purchasing power of German money had sunk

considerably, whereas I maintained the stable rate of exchange so that

the inflationary tendencies in these countries would not be strengthened

and result in complete economic chaos through the fault of the currency

control. Therefore we had to make additions to the payments to make up

somewhat for the devaluation of the money in the occupied and other

countries. Altogether, considerable sums were transferred. I would

estimate these sums to be at least 2,000 million Reichsmark.

DR. SERVATIUS: Do you know whether Sauckel tried to do something about

the clothing for foreign workers? Was anything done?

FUNK: He made considerable efforts, and this was particularly hard on

the Ministry of Economics, because with the small amount of raw

materials which the Central Planning Board had made available this

Ministry had to take care of the population, and through the ever

growing number of people bombed out we received ever greater demands for

supplies. Yet, in spite of that, we tried to comply with the demands of

Sauckel as far as possible, but of course we could not do so entirely.

DR. SERVATIUS: To what extent was clothing material delivered? Can you

give any figures?

FUNK: No, I cannot.

DR. SERVATIUS: Do you know anything about Sauckel’s attitude towards

Himmler, since, according to the Prosecution, he collaborated with him?

FUNK: I remember one particular incident. When I had fled to Thuringia

with my gold reserve and the rest of my foreign exchange I called on

Sauckel one evening; State Secretary Keppler, who has been mentioned

here frequently, was also present.

In the course of the conversation Sauckel and Keppler got into a

terrific dispute with Himmler. Sauckel told Himmler quite plainly that

he had destroyed the administrative unity in Germany; that he was mainly

responsible for the disorganization of the German administration, for

through the SS he had created a state within a state. Sauckel said

further, “How can the people keep discipline if the top men of the Reich

themselves cannot keep discipline?”

DR. SERVATIUS: I have no further questions.

DR. EGON KUBUSCHOK (Counsel for the Defendant Von Papen): Is it true

that after Von Papen’s speech at Marburg in June 1934 Hitler asked you

to go to Reich President Von Hindenburg at his country estate in Neudeck

and to tell him the following:

Vice Chancellor Von Papen, because he was forbidden to make his speech

public, had asked to be allowed to resign. This resignation would have

to be granted, because Von Papen through his speech at Marburg was

guilty of a severe breach of Reich Cabinet discipline.

FUNK: When Reich President Von Hindenburg was at his estate at Neudeck

he frequently invited me to visit him. I have already mentioned that I

associated with him on familiar terms. A visit like this took place when

the matter of the Von Papen speech at Marburg arose, and the Reich

Marshal suggested to the Führer, as far as I recall, to have me inform

the Reich President about this incident. The Führer had me do this, and

I told the Reich President that a conflict had arisen between the Führer

and Von Papen because of a certain speech. I did not know the contents

of this speech, since in the meantime its publication had been

forbidden. Then the Reich President simply replied, “If he does not

maintain discipline, then he must be prepared to take the consequences.”

DR. KUBUSCHOK: Thank you.

DR. HEINZ FRITZ (Counsel for Defendant Fritzsche): Witness, when and

where did you meet your Codefendant Fritzsche?

FUNK: When he was active in the press section of the Propaganda

Ministry. One day he appeared before me and wanted money for

“Transocean,” and I granted him this money.

DR. FRITZ: You were State Secretary in the Propaganda Ministry at that

time?

FUNK: Yes.

DR. FRITZ: That was in what year?

FUNK: That must have been in 1933 or 1934.

DR. FRITZ: When he came to you, did you know what position Fritzsche had

in the Propaganda Ministry at that time?

FUNK: I knew that he was in the press section.

DR. FRITZ: Was this a leading position which he had? Was he perhaps head

of a department?

FUNK: No. At that time the head of this department was Dr. Hahnke as far

as I remember. Later it was Berndt.

DR. FRITZ: Could you observe whether Fritzsche was in any close contact

with Dr. Goebbels?

FUNK: I was never called in to attend any of the discussions which Dr.

Goebbels had daily with his experts. That was done through his personal

assistant, Dr. Hahnke who later became State Secretary. But since

Fritzsche was not the head of a department I assume that he was not

called in to these discussions either. As far as I know mostly the heads

of departments were called to these discussions, but certainly not

Fritzsche.

DR. FRITZ: Then according to your knowledge, in your capacity as State

Secretary at that time, he was not one of the closer collaborators of

Dr. Goebbels, if I understood you correctly.

FUNK: At that time I do not believe so. Of course, I do not know what

took place later.

THE PRESIDENT: The Prosecution?

MR. DODD: Witness, can you hear me?

FUNK: Yes.

MR. DODD: We have listened to your testimony since late Friday

afternoon, and, as we understand it from your statements, you admit none

of the charges made against you in the Indictment in any degree, with

possibly one exception; I am not clear as to whether or not you were

making an admission this morning with respect to your part in the

persecution of the Jews. Would you tell us now whether or not you

intended to admit your own guilt or the part that you played in the

persecution of the Jews?

FUNK: I said this morning that I had a deep sense of guilt and a deep

sense of shame about the things which were done to the Jews in Germany,

and that at the time when the terror and violence began I was involved

in a strong conflict with my conscience. I felt, I could almost say,

that a great injustice was being done. However, I did not feel guilty in

respect to the Indictment against me here, that is, that according to

the Indictment I was guilty of Crimes against Humanity because I signed

the directives for carrying out laws which had been issued by superior

offices—laws that had to be made so that the Jews would not be entirely

deprived of their rights, and so that they would be given some legal

protection at least in regard to compensation and settlement. I am

admitting a guilt against myself, a moral guilt, but not a guilt because

I signed the directives for carrying out the laws; in any event not a

guilt against humanity.

MR. DODD: All right. That’s what I wanted to thoroughly understand. You

also told the Tribunal, that you—I think you used the expression “often

at the door but never let in,” and I understand that to mean that in

your own judgment you were really a little man in this Nazi

organization. Is that so?

FUNK: Yes...

MR. DODD: All right. That’s an answer. You might want to explain it

later, but for the present purposes that will do.

FUNK: May I give an explanation to this. I wanted to state that in the

position I held, there were always higher authorities which made the

final decision. That was the case in all the positions I held in the

State.

MR. DODD: Well, let’s both examine some of the evidence, and see whether

or not you were in fact always subordinated and always a little man who

didn’t get in.

First of all, there’s one matter that I do want to clear up before going

into the general examination. You recall when the Defendant Schacht was

on the stand, he told the Tribunal that after he left the Reichsbank he

had an office in his apartment, is that so?

FUNK: Yes, he said that.

MR. DODD: Now of course you have told us, on another occasion, that he

continued to have an office in the Reichsbank. Isn’t that so?

FUNK: I don’t know whether I said and where I said that, but it may be

so. I was informed, at the time when he resigned, that he still went to

the Reichsbank rather frequently, and that a room was reserved there for

him. In addition he still had some personnel, a secretary whom he had

taken with him from the Reichsbank—and that is all I know.

MR. DODD: Another question. You told us, on another occasion, that he

had an office in the Reichsbank where he worked on certain bank data and

where he still kept in touch with you every now and then. Isn’t that so?

Do you remember telling us that or not?

FUNK: No, it wasn’t like that. Schacht seldom...

MR. DODD: If you don’t remember, then I perhaps can help you a little

bit. Do you remember being interrogated by Major Hiram Gans of the

United States Army on June 2, 3, and 4 of 1945? Do you remember that?

You know who was there—Göring was there, Von Krosigk was there, Lammers

was there....

FUNK: Yes.

MR. DODD: All right. You were asked this question, weren’t you, or

rather, preceding this answer there were some questions?

Question: “Did Schacht retain any governmental position after his

dismissal as President of the Reichsbank?” Then Göring put in an answer:

“Reich Minister.” Then another question: “Did he have any functions?”

Göring again answered: “He remained Minister without Portfolio.” Then

another question: “Were there any Cabinet meetings he attended?” Göring

answered again: “There were no Cabinet meetings at that time.” Question:

“Then it was purely honorary?” Göring said: “Practically.”

Then you interposed with this statement (Funk is speaking): “Schacht,

after his dismissal, kept an office in the Reichsbank, where he worked

on statistical data of the Reichsbank and where he still kept in touch

with me every now and then.” Question: “How long did this last?” Answer:

“This lasted until Schacht’s dismissal as Minister, probably in 1943.”

You made those answers, that answer, did you not?

FUNK: That is not correct. I did not express myself that way. I said

only that I had been informed that he came to the Reichsbank frequently,

that there was a room reserved for him and that he very seldom spoke to

me. He seldom called on me. That was not translated correctly.

MR. DODD: You know what I am reading from, do you not? You know this

Document, Number 2828-PS?

FUNK: No.

MR. DODD: Parts of this are already in evidence as Exhibit USA-654. And

later, in another form, I shall submit this part which I have just read.

Counsel Sauter, for you, this morning referred to a letter which you had

written to Hitler, I believe it was in 1939, a very fulsome letter which

you said was somewhat due to the general feeling at the time and also to

the fact that it was about your 50th birthday. Is that so? There was

another reason for your writing that letter in connection with your

birthday, wasn’t there? Do you know to what I refer?

FUNK: Yes.

MR. DODD: You received 520,000 Reichsmark from Hitler as a birthday

present?

FUNK: No, that is not correct.

MR. DODD: Didn’t you receive a present from Göring and Goebbels...

FUNK: Yes...

MR. DODD: Wait a minute till I get through—you don’t seem to

remember—you received a present from Göring and Goebbels in the first

instance which had been made up of 250,000 Reichsmark from leading

businessmen in Germany and 270,000 Reichsmark which came out of special

accounts maintained by Göring and Goebbels. Then Hitler heard about that

and ordered you to return that money because of the fact that some of it

came from industry, and he himself gave you a so-called donation to the

sum of 520,000 Reichsmark, isn’t that so?

FUNK: The first is not correct, but the latter is correct. But may I

explain the details; they are of a completely different nature.

MR. DODD: Go ahead.

FUNK: On my fiftieth birthday the President and Directorate of the Reich

Chamber of Economics, the chief organization of the entire German

economy, called on me and declared that because of my more than 20 years

of service to German economy they wanted, with the approval of the

Führer, to make me a gift of an estate in Bavaria. That was a doubtful

present, for later I had much worry and trouble because of it. A large

house was built there because, as I was told, the Führer had said that

he also wanted me to work there. The taxes were so high, however, that I

could not pay them, nor the remaining construction costs, either.

Thereupon I did not appeal to Göring, but Göring heard about it and had

300,000 Reichsmark given to me in order to help me out of my financial

straits. I did not receive any money from Goebbels, but with the

approval of Goebbels the film corporation joined the Chamber of

Economics in giving me this money. When the Führer heard of the

difficulties I had in paying taxes and making other payments he put a

sum of 500,000 Reichsmark at my disposal. With the other money I

received I made two donations, one of 500,000 Reichsmark to the

Reichsbank for the families of the members of the Reichsbank killed

during the war and another of 200,000 Reichsmark to the Reich Ministry

of Economics for the families of members of that office who died in the

war. I was able to live in, and pay for the upkeep of, this large house

and grounds only because I had a relatively large income. However, from

the beginning, when I saw the tremendous costs and expenses connected

with it particularly in taxes, _et cetera_, I decided, in agreement with

my wife, that after my death this estate should again be donated either

to the Reichsbank or to my East Prussian homeland. I also discussed this

several times with the Reichsbank Directorate.

MR. DODD: I am not much concerned with what you did with it, I only want

to know if you got it. And you got it, didn’t you? You got 520,000

Reichsmark.

FUNK: Yes.

MR. DODD: You also made a present out of public funds on your own

account to the Defendant Frick on one occasion, didn’t you? Didn’t you

give Frick a birthday present of 250,000 Reichsmark on 12 March 1942?

FUNK: That I don’t know.

MR. DODD: You don’t remember? You don’t remember that? Do you know

anything about the other gifts that were given to any of these other

defendants out of public funds, either through your position as

President of the Reichsbank or as an important functionary of the Nazi

Party? Do you know anything about these other men and what they have got

from the public treasury?

FUNK: These moneys were not given by me. They were given from the fund

of the Führer by Lammers. I did not dispense such moneys.

MR. DODD: They were public funds, were they not? They did not come from

anywhere else except the public? You don’t know then that Rosenberg got

250,000 Reichsmark? Did you know that?

FUNK: No.

MR. DODD: In January 1944; you were then President of the Reichsbank?

FUNK: Yes, but these moneys never came from the Reichsbank. These were

moneys from funds which were administered by Lammers and I assume that

the moneys came from the Adolf Hitler donation or from other funds. But

the Reichsbank had nothing to do with these funds.

MR. DODD: Do you know that Von Neurath got 250,000 Reichsmark on 2

February 1943? Do you know anything about that? You were the President

of the Reichsbank then.

FUNK: I know nothing about that.

MR. DODD: You heard about Lammers and his 600,000 Reichsmark. You know

that Keitel got 250,000 Reichsmark on 22 September 1942. You never heard

about that?

FUNK: The Reichsbank had nothing at all to do with these things.

MR. DODD: You know that Von Ribbentrop got 500,000 Reichsmark on 30

April 1943. You never heard of that? General Milch got 500,000

Reichsmark in 1941; none of these things ever came to your attention?

FUNK: I never had anything to do with these matters. They were Lammers’

concern and the money did not come from the Reichsbank.

MR. DODD: Now, I understood you to say that you were not the economic

advisor in fact to Hitler or to the Nazi Party of the early days. That

is in your own judgment you were not. It is a fact, however, that you

were generally regarded as such by the public, by industrialists, by

Party members and the high Party officials. Is that not so?

FUNK: I was called that, as I said here, on the basis of my activity in

1932. I acted as a mediator in conversations between the Führer and some

leading economists and for a short while carried out the activity in the

Party which has been described here.

MR. DODD: You have called yourself the economic advisor on occasion,

have you not? At least on one occasion, during an interrogation, did you

not refer to yourself as the economic advisor for the Party? You

remember that?

FUNK: No.

MR. DODD: I think you will agree that you were generally recognized as

such, but the really important thing is that the public thought you

were.

FUNK: I have testified here that I was called that by the press and from

the press this designation apparently went into record. I did not use

this term myself.

MR. DODD: Were you the principal contact man between the Nazi Party and

industry in the very early days?

FUNK: In 1932, and this is the only year which we need consider in

connection with Party activities on my part, because I was not active in

the Party before or after this year. I did arrange discussions between

Hitler and leading men of industry, whom I can name. But other men also

acted in that capacity; for example, State Secretary Keppler.

MR. DODD: I am not asking you about other men, I am asking you whether

or not you were not a principal contact man. Actually you were

encouraged by industry, were you not, to become active in the Party?

FUNK: Yes.

MR. DODD: You acted as a go-between for the Nazis and the big business

in Germany.

FUNK: It did not take up much time, but I did it.

MR. DODD: Whether it took much of your time or not, that doesn’t

interest us. It took a little bit of your time. That’s what you were

doing?

FUNK: Yes.

MR. DODD: You remember Document Number EC-440 perhaps. It is really a

statement that you made and prepared on the relationship of German

industry to the Party in the National Socialist leadership of the State.

You remember that paper you drew up on 28 June 1945? You may recall that

you yourself said, “Keppler, who later became State Secretary, and who

served as economic advisor to the Führer before me....” You used that

terminology. You recall that?

FUNK: Keppler?

MR. DODD: Yes, he was the advisor before you. You remember that?

FUNK: Yes.

MR. DODD: Now, in the Propaganda Ministry, if I understand you

correctly, you want the Tribunal to believe that you were something of

an administrative functionary and not a very important man, and you did

not really know what was going on. Is that your position?

FUNK: No. I had quite a large task, and that was the direction of an

extensive cultural and economic concern. I stated that here. It

consisted of film companies, theaters, orchestras, the German Trade

Publicity Council, and the administration of the entire German radio, an

undertaking worth a hundred millions, that is to say, a very extensive

activity, an organizational, economic and financial activity. But

propaganda was taken care of solely and exclusively by Goebbels.

MR. DODD: Yes. You knew the policies and the purposes of the Propaganda

Ministry; there isn’t any doubt about that?

FUNK: Yes.

MR. DODD: You knew that, did you not?

FUNK: Yes.

MR. DODD: All right. Now, we can pass on to one other matter that I

referred to earlier, to clear up another matter. Do you recall that the

Defendant Schacht, when he was on the stand, said, I believe, at that

now famous meeting where a number of industrialists were gathered to

greet Hitler, that he did not take up the collection? Schacht said he

did not do it. I think he said that Göring did it or somebody else. Do

you remember that testimony about Schacht on the stand? You remember

being interrogated about that subject yourself?

FUNK: Yes.

MR. DODD: Do you remember what you told us at the time?

FUNK: Yes.

MR. DODD: What did you tell us?

FUNK: I said that Schacht after addresses by Göring and Hitler made a

brief speech, and that he asked those present to, so to say, go to the

cashier and subscribe, that is, raise money for the election fund. He

took over the collection and said that the coal industry...

MR. DODD: Who?

FUNK: He said...

MR. DODD: Who was the one who took up the collection? I don’t understand

whom you mean by “he.”

FUNK: Schacht.

MR. DODD: That’s all I wanted to know about that. When did you first

learn that the uprisings of November 1938 were not spontaneous?

FUNK: On the morning of 9 November, on my way from my home to the

Ministry, I saw for the first time what had taken place during the

night. Before that I had not had the slightest hint that such excesses

and terror measures had been planned.

MR. DODD: I think you misunderstood me. I did not ask you when you first

came to know about the uprisings; I asked you when you first learned

that they were not spontaneous; when you first learned that they were

instigated and planned by somebody else.

FUNK: I only found out about that later.

MR. DODD: Well, how much later?

FUNK: I believe very much later. Later on there was much discussion

about this matter and it was never clear just who had been the

instigator of these measures of terror and violence and where the order

had originated. We knew that it had come from Munich. We had learned

that in the meantime on 9 November; but, whether it was Goebbels or

Himmler, and to what extent the Führer himself participated in this

measure, I was never able to find out clearly. From my telephone

conversation with Goebbels, which I mentioned today, one thing was

clear: The Führer must have known about this matter, for he told me that

the Führer had decreed, and Göring also said this, that the Jews were

completely to be eliminated from economic life. From this I had to

conclude that the Führer himself knew about this matter.

MR. DODD: Now from that telephone conversation we can also see one other

thing. You knew that Goebbels had started this business, did you not,

and that was the day after it happened? You knew it was not spontaneous

and that is why you called up Goebbels and got after him; is that not

so?

FUNK: Yes.

MR. DODD: How many days later did you make that inflammatory speech

about what should be done to the Jews? About six days afterwards, did

you not? I am referring to the one that was published in the

_Frankfurter Zeitung_; your counsel referred to it this morning.

FUNK: Yes, to begin with...

MR. DODD: And in that speech you tried to make it appear to the public

that that was a spontaneous uprising, did you not?

FUNK: Yes.

MR. DODD: That was not true, was it?

FUNK: I did not know that at the time. At that time I still believed

that it was really something favored by large elements of the

population. Very much later I found out that routine machinery had been

put in motion.

MR. DODD: Are you telling this Tribunal now that on the morning of your

telephone call to Goebbels, when you in effect blamed him for these

uprisings, you were not well aware then that he had started it? Is that

your position?

FUNK: At that time I did not know who had started this regime of terror

and how it had been carried through; that was entirely new to me.

MR. DODD: If you did not know who started it, you knew that somebody

started it and that it was not spontaneous?

FUNK: Yes.

MR. DODD: And still in your speech of 15 November you tried to make it

appear to the public that it was just an uprising on the part of the

German people, did you not?

FUNK: I based that on the attempted assassination of—I do not know who

he was; some attaché in Paris—and actually the attempt caused much

agitation. There is no doubt of it.

MR. DODD: Now I think you understand my question, Witness. You said on

that occasion, you used these words: “The fact that the last violent

explosion of the indignation of the German people because of a criminal

Jewish attack against the German people took place,” and so on, and you

went on. You were trying to make it appear there that this was a

spontaneous reaction of the German people, and I insist that you knew

better and had known it for some days, had you not?

FUNK: But I did not know that that is what took place. I admit that I

knew that an impulse had come from some office or other.

MR. DODD: Well, all right. When did you coin the expression “crystal

week”? Do you know what that expression is; where it came from?

FUNK: “Crystal week?”

MR. DODD: Yes.

FUNK: Yes, I did use these words once in connection with this action.

MR. DODD: You coined the phrase.

FUNK: Because much was shattered.

MR. DODD: You are the fellow who started that expression. You are the

man, are you not? that was your expression?

FUNK: Yes, I used it.

MR. DODD: And you were using it—because you made this _Frankfurter

Zeitung_ speech?

FUNK: I once characterized that action with that term, it is true,

because much had been shattered.

MR. DODD: Now, let us move on a little bit to the well-known meeting of

12 November, when Göring and Goebbels and all of the other people made

their remarks about the Jews and you said you were present. You did not

make any objection that day to anything that was said, did you?

FUNK: No. I merely attempted to have certain things put through in order

to save something for the Jews, for example, their securities and

stocks. Then I managed to have the stores reopened, so that things would

move less rapidly, and I did more, too.

MR. DODD: I understand that, but I thought this morning you were really

pretty sensitive about the terrible things that had happened to the

Jews, and you remember some of the suggestions that were made that day

by Göring and Goebbels; they were pretty nasty things, were they not?

FUNK: Yes, I openly admitted that I was much shaken...

MR. DODD: Were you? Well...

FUNK: And that my conscience bothered me.

MR. DODD: All right. You went on after that and made your _Frankfurter

Zeitung_ speech and you carried out these decrees, even though your

conscience was bothering you; is that so?

FUNK: But the decrees had to be issued. I have already emphasized that

several times here. I had no pangs of conscience because the decrees

were issued. I had pangs of conscience because of the reasons for them.

But the decrees themselves—

MR. DODD: That is what I’m asking you about.

FUNK: But the decrees had to be issued. The reasons for them—yes; I

admit that.

MR. DODD: You know Schacht said on the stand that if he had been the

Minister of Economy he did not think those things would have happened?

Do you remember him saying that here the other day, do you?

FUNK: Yes. He must have had very powerful and influential connections in

the Party, otherwise he could not have been successful.

MR. DODD: You did not have these connections in the Party, did you? You

were not in the Party, you were a Minister?

FUNK: No, I did not have these connections and I could not prevent these

terror actions.

MR. DODD: Well, we will see about that. Your counsel has submitted on

your behalf an affidavit from one Oeser, O-e-s-e-r; do you remember that

man? O-e-s-e-r, do you remember him?

FUNK: Yes.

MR. DODD: Do you remember him?

FUNK: Yes.

MR. DODD: And his affidavit—interrogatory, I believe it was...

THE PRESIDENT: Mr. Dodd, we will adjourn for a bare 10 minutes.

[_A recess was taken._]

MR. DODD: Witness, I was inquiring about this man Oeser when we

recessed—O-e-s-e-r; do you recall him? He was one of your employees in

the _Frankfurter Zeitung_, was he not?

FUNK: Yes, he was the chief of the Berlin administration office of the

_Frankfurter Zeitung_, a respected journalist.

MR. DODD: Yes. You know, do you not, that you have an interrogatory or

an affidavit from him, which you are submitting to this court; it is in

your document book?

FUNK: He volunteered to do that.

MR. DODD: Well, I’m not asking you—that is all right—whether he did or

not; I just wanted to establish that you know that he did.

FUNK: Yes.

MR. DODD: Now, in that affidavit, as I read it, Oeser maintains that you

were really being quite decent about the Jews in that newspaper. Is that

not so? Is that not the sense of it; that you saved them from dismissal

and so on, you put them under the exceptions provided in the decrees?

FUNK: Yes.

MR. DODD: All right.

FUNK: I allowed quite a number of editors to come under these

exceptions.

MR. DODD: Yes, I know. Now I want to ask you this: There was a real

reason, other than decency towards Jews, for your conduct with reference

to that particular paper, was there not?

FUNK: No.

MR. DODD: Well, now, wait a minute.

FUNK: I do not know these people personally.

MR. DODD: I do not say that you knew the people personally. I say that

there was a reason, other than your feeling for Jews as people, but

which you have not told the Tribunal about yet, another reason maybe.

FUNK: In the case of the editors of the _Frankfurter Zeitung_?

MR. DODD: Yes.

FUNK: No.

MR. DODD: Now, is it not a fact that you and probably Hitler, and

certainly Goebbels, and some of the other higher-ups of the Nazi Party,

decided that that paper should be left in _status quo_ because of its

vast influence abroad? Is that not true?

FUNK: We did not talk about that at that time. That issue came up later.

It came when the Führer demanded that almost all leading daily

newspapers should either be taken over by the Party or merged with Party

papers. And on that occasion I succeeded in having exception made for

the _Frankfurter Zeitung_, and the _Frankfurter Zeitung_ continued to

exist for a long time. But that was much later. Here, in fact, the only

reason was to help a few Jewish editors.

MR. DODD: Well...

FUNK: It was a purely humane reason.

MR. DODD: You can answer this. I just wanted to get your answer on the

record because I’ll have more to say about it later. Do I understand you

to deny that it was your established policy to preserve the _status quo_

of the _Frankfurter Zeitung_ because of its influence abroad?

FUNK: No, it was always my opinion that the _Frankfurter Zeitung_ should

remain as it was.

MR. DODD: Well, was it for the reason that I suggest, because these

people were well known in the financial world abroad, and you did not

want to impair the usefulness of that paper abroad? That’s what I’m

getting at, and I say that that is why you kept them on, and not because

you felt badly about their plight as Jews.

FUNK: No, not in this case. In this case that was not the reason.

MR. DODD: Very well; now, with respect to your activities as the

Plenipotentiary for Economy and their relationship to the wars waged

against Poland and the other powers, I have some questions that I would

like to ask you. Now I will tell you what it is about first, so you will

be aware. You are not maintaining, are you, that your position as

Plenipotentiary for Economy did not have much to do with the affairs of

the Wehrmacht?

FUNK: Yes, I assert that. With the Wehrmacht...

MR. DODD: Now, I have in my hand here a letter which Von Blomberg wrote

to Göring. Do you remember that letter? It is a new document and you

have not seen it in this Trial, but do you remember any such letter?

FUNK: No.

MR. DODD: Well, I ask you to be handed Document Number EC-255.

[_The document was handed to the defendant._] Mr. President, this

becomes Exhibit USA-839.

[_Turning to the defendant._] Now, in this letter from Von Blomberg, I

am only concerned now with the last sentence, really. You will notice

that Von Blomberg, in this letter, refers to the fact that Schacht had

been appointed, but the last sentence says, or in the next to the last

paragraph he first urges that you be appointed immediately, and that is

underlined in his letter; and in the last paragraph he says:

“The urgency of unified further work on all preparations for the

conduct of the war does not admit of this office being paralyzed

until 15 January 1938.”

This letter, by the way, was written on 29 November 1937. Certainly Von

Blomberg thought that the job that he was suggesting you for would have

some very great effect upon the conduct of the war, did he not?

FUNK: That may be, but in the first place, I do not know about that

letter and, secondly, I was not immediately appointed Plenipotentiary

for Economy but only in the course of 1938. Quite some time after I had

been appointed Minister for Economics I asked Lammers why my appointment

as Plenipotentiary for Economy had taken so long; he replied that my

relationship to the Delegate for the Four Year Plan had to be cleared up

first. That was the reason why several months passed before I became

Plenipotentiary for Economy, because it had to be ascertained that

Göring had the decisive authority for war economy...

MR. DODD: You really do not need to go into all that.

FUNK: I do not know about that letter, and I have never spoken to Von

Blomberg about the affair.

MR. DODD: All right. You do recall perhaps that the OKW, after you were

appointed, made some objection about the amount of authority that you

had. Do you remember that?

FUNK: No.

MR. DODD: Now, I am holding here another new document, Number EC-270,

which I will ask that you be shown, which will become Exhibit USA-840.

While you are waiting for it, I will tell you that it is a letter

written on 27 April 1938. You will notice that in the first paragraph of

this letter from the OKW it says that the interpretation which has been

put on the decree of the Führer—the decree of 4 February 1938—does not

correspond to the necessities of total warfare.

And then you go down to the third paragraph on that first page and you

will find other objections with respect to your authority. Apparently at

this time the OKW thought you had too much to do with what would be the

war effort, and finally on the last page, Mr. Witness, if you will look

at this paragraph, you will see this sentence—on the last page of the

English, anyway; near the end of the letter this sentence appears:

“The war economy, which is subordinated to the Plenipotentiary,

represents the economic rear area of the armaments industry.”

And I want you to observe carefully those words “armaments industry.”

And then it goes on to say:

“If this stage fails, the striking power of the Armed Forces

becomes questionable.”

I ask that you pay attention to the words “armaments industry,” because

I recall that this morning you said you had absolutely nothing to do

with the armaments industry; but apparently the OKW thought that you

did, on 27 April 1938. Is that not so?

FUNK: I do not know this letter either. I do not know the attitude of

the OKW but I do know this: The OKW, especially the Codefendant Field

Marshal Keitel, was of the opinion at that time that I, as

Plenipotentiary General for War Economy, should assume the authority and

competence of Schacht; but there was a conversation between the Reich

Marshal and Field Marshal Keitel—Keitel confirmed this to me—in which

the Reich Marshal clearly declared; “The war economy will not be turned

over to Funk.” I can honestly and sincerely say that I did not have the

slightest idea of all these things. I did not know what kind of position

the OKW intended me to have. I never had that function because the

administration for the armaments industry was never included in the

Ministry of Economics. I do not remember the matter.

MR. DODD: All right. That is your answer. I suppose at the time you were

also aware, as you told the Tribunal, that you were really subordinate

to Göring and in a very inferior position about all of these things. Is

that so?

FUNK: Yes.

MR. DODD: I am going to ask you to look at another Document, Number

EC-271, which will become Exhibit USA-841, and this document consists of

a letter which you wrote to Lammers, a letter which Lammers wrote to the

Chief of the High Command, Field Marshal Keitel, and one or two other

letters not pertinent for the purposes of this present inquiry. It was

written on 31 March 1938, and I want you to turn to the second page

because that is where your letter appears. The first page is just a

letter of transmittal from Lammers to Keitel, but let us look at the

second page. Have you got it?

FUNK: Yes.

MR. DODD: You are writing to Lammers and you say—I am not going to read

the whole letter, but the second paragraph. You wrote to Lammers and you

say among other things:

“On the occasion of a trip to Austria I have, among other

matters, also talked to Field Marshal Göring about the position

of the Plenipotentiary for War Economy. I pointed out in this

conversation that, contrary to the attitude of the OKW, of which

I was informed, the decree of 4 February 1938 concerning the

leadership of the Wehrmacht did not change the position of the

Plenipotentiary for War Economy.”

And you go on—aside from the fact that the decree applied exclusively

to the command of the Armed Forces, and so on, and that especially the

last paragraph of that decree stated that you were dependent upon

instructions of the Führer—to say:

“Moreover, among the instructions of the Führer is included the

decision of the Reich Government of 21 May 1935, according to

which the Plenipotentiary for War Economy, in his sphere of duty

as supreme Reich authority, is immediately subordinated to the

Führer.

“General Field Marshal Göring assured me that my interpretation,

as mentioned above, was correct in every respect and also

corresponds with the Führer’s opinion. Thereupon I asked him to

give me a brief written confirmation. Field Marshal Göring

promised to grant this request.”

Now, you wrote that letter to Lammers, did you not, on 31 March 1938,

“yes” or “no?”

FUNK: Certainly.

MR. DODD: All right. You were trying to have supreme authority and make

yourself answerable only to the Führer and that is what this contest was

about, and that is what Document Number EC-271 referred to and this is

your answer to the OKW’s objection that you had too much power. This

does not look like you were a little man, does it, Mr. Witness?

FUNK: Yes. I wanted to clarify the position, but later it was not

clarified in that sense but in the sense that I was dependent upon the

directives of the Reich Marshal. I wrote this letter in order to try to

obtain a clarification, but I do not remember this letter in detail.

MR. DODD: You told Lammers...

THE PRESIDENT: Mr. Dodd, is not this letter that you have just read the

very letter which is referred to in the letter which you put to him

immediately before?

MR. DODD: Yes, Sir, it is. It referred to EC-271. I am sorry, I said

271, I meant 270.

THE PRESIDENT: GB Number 649/38 is the letter you just read. Will you

look at the first paragraph of EC-270; the letter referred to there,

criticizing, is the Defendant Funk’s letter you just read.

MR. DODD: Yes, it is, your Honor.

[_Turning to the witness._] My point here, Mr. Witness, is that, you

see, you told the Tribunal that you really just worked for Göring; that

you did not have much to say about these things, but now we find that

you were writing a letter asserting your supreme authority and saying

now, “it is a fact that I am really only answerable to Hitler,” and, you

see, those two are quite inconsistent. What have you got to say about

that?

FUNK: Yes; in fact, I was never successful.

MR. DODD: Now, let us see if you were not. Now you turn another page in

that document and you will find another letter from Lammers, written on

6 April 1938, and it is written to you, and he tells you that you are

just right in what you understood to be your position; that you are

indeed only subordinate to the Führer and that he has sent a copy of

your letter to both Field Marshal Göring and the Commander of the OKW.

Now, what do you say about that?

FUNK: I see from this that I tried at that time to achieve that post,

but in fact I never succeeded because the Reich Marshal himself stated

later that he would never turn over the war economy to me. The formal

authority of the Plenipotentiary for Economy was turned over to the Four

Year Plan by a decree of the Führer of December 1939.

MR. DODD: Well, is that your answer? Now, you also have told the

Tribunal, as I understood you at least, that you really did not have

much to do with the planning of any aggressive wars, and that your

activities were restricted to regulating and controlling the home

economy, so to speak. Now, actually on 28 January 1939, which was some

months before the invasion of Poland, you were considering the use of

prisoners of war, were you not?

FUNK: That I do not know.

MR. DODD: Are you sure about that? Now I will ask that you be shown

another document, Number EC-488 which becomes Exhibit USA-842. This is

an unsigned letter, a captured document from your files. This letter, by

the way, was transmitted under the signature of Sarnow. You know who he

was; he was your deputy. Now, this letter, dated 28 January 1939, says

that its subject is “Re: Employment of Prisoners of War.” Then it goes

on to say:

“Under the Reich Defense Law of 4 September 1938* I have the

direction for the economic preparations for the Reich defense,

except the armament industry.”

Then it goes on, “For the utilization of labor...” and so on. But what I

want to call your attention to particularly is the sentence in the

second paragraph which says:

“The deficit in manpower may force me to the employment of

prisoners of war as far as possible and practical. The

preparations, therefore, have to be made in close co-operation

with the OKW and GBW. The offices under my jurisdiction will

duly participate therein.”

Remember that communication?

FUNK: No, I have never seen that letter, and never signed it. But that

letter belongs to the matters about which I spoke this morning. The

office of the Plenipotentiary for Economy—moreover, I see

“Plenipotentiary for War Economy” is scratched out—was continuously

occupied with these things. I personally had nothing to do with it.

MR. DODD: Well now, that is rather playing with words. This was your

Ministry that was making these suggestions, and your principal deputy

who transmitted this letter, is that not so?

FUNK: No, that was...

MR. DODD: Now, you look up in the right hand corner of that letter and

see if it doesn’t say “The Plenipotentiary for the Economy,” and then it

gives the address and date.

FUNK: Yes, and it is signed “By Order: Sarnow.”

MR. DODD: That is right, and he was your principal deputy, was he not?

FUNK: No.

MR. DODD: What was he?

FUNK: He only worked in the office of the Plenipotentiary General. My

main deputy, who was in charge of those things, was Dr. Posse.

MR. DODD: Well now, at any rate...

FUNK: As I have said before, I personally had nothing to do with these

things whatsoever.

MR. DODD: It has just been called to my attention that if you say the

man was Posse, then in the second paragraph of that letter you can find

his name: “I can refer to the statements of Generaloberst Keitel, State

Secretary Dr. Posse...” At any event, important people in your

organization were involved in this thing, were they not?

FUNK: Certainly.

MR. DODD: All right. Now, you remember the Document Number 3562-PS. It

was introduced here as Exhibit USA-662. It is the minutes of a meeting

set out by Dr. Posse, your deputy, which discussed a memorandum for

financing the war, and you talked about that this morning and you said

that despite the fact that there is a note on it “to be shown to the

Minister,” you never saw it.

FUNK: I would have had to initial it if I had seen it.

MR. DODD: Well, whether that is so or not, I am not concerned about

right now. Instead, I want you to listen while I read an excerpt from

it. If you would like to see the document you can have it, but I hardly

think it is necessary. You recall that in that document one of your

memoranda is referred to, is it not? Do you remember? Do you remember

that Posse said:

“It was pointed out that the Plenipotentiary for Economy is

primarily concerned with introducing into the legislation for

war finance the idea of financing war expenditures by

anticipating future revenues, to be expected after the war.”

FUNK: Yes.

MR. DODD: All right. That is all I have to ask about that document. We

can move right along here.

Referring again to your own direct testimony, I understood you to tell

the Tribunal that insofar as the war against Poland was concerned, you

did not really know until some time in August that there was even a

likelihood of war with Poland; some time in August you thought it would

be settled by diplomatic means. Is that not so?

FUNK: In all probability not. For months there was a latent danger of

war, but even in August one could see that it was imminent.

MR. DODD: Had you been planning or making economic plans for war with

Poland for more than a year before the attack on Poland? You can answer

that “yes” or “no.”

FUNK: I do not know.

MR. DODD: You mean you did not know whether you had or not? What do you

mean by that kind of an answer? Do you not remember?

FUNK: I do not remember.

MR. DODD: All right. Then I can help you. There is a Document, Number

3324-PS, which is already in evidence. You must remember it; it is

Exhibit USA-661. That is a speech that you made. Is that not so? Do you

not remember saying in it that you had been planning in secret for well

over a year for the war on Poland? Do you remember that? Would you like

to see the document?

FUNK: Yes, please.

MR. DODD: The sentence is here:

“Although all the economic and financial departments were

utilized in the tasks and work of the Four Year Plan, under the

leadership of Field Marshal Göring, the war economic preparation

of Germany on another branch has also been advanced in secret

for years...”

Do you remember that?

FUNK: Yes, now I know.

MR. DODD: You will notice it says here “for well over a year,” and you

went on to say this had been done under you. Is that true?

FUNK: Yes, that was the activity of the Plenipotentiary for civilian

economy. I already explained that this morning.

MR. DODD: All right. Well, that is all right. I just wanted to get your

answer...

FUNK: I did not speak of Poland.

MR. DODD: Well, that is the only war that was on when you made this

speech. It was October 1939.

FUNK: The preparations were not made for a specific war, it was...

MR. DODD: All right.

FUNK: It was a general preparation.

MR. DODD: Now, actually you and Göring were even in a contest for power

to some extent, were you not? Was the Göring door one of those that you

were also trying to get in? You can answer that very simply. You told us

you were trying to get in these various doors, but you would get up

there and never get in. I now ask you if the Göring door was one of

those.

FUNK: I do not believe that I was so presumptuous as to want to get

Göring’s post. That was far from being my intention. I had very little

ambition at all.

MR. DODD: I did not say that you wanted to get his post, but you wanted

to get some of his authority, did you not? Or do you not remember? Maybe

that is the solution.

FUNK: No.

MR. DODD: Well, your man Posse was interrogated here by representatives

of the Prosecution and the document is Number 3894-PS. He was asked

these questions:

“Question: ‘What was the nature of the conflict between the

Plenipotentiary for Economy and the Four Year Plan?’

“Answer: ‘The struggle for power.’

“Question: ‘The struggle for power between Funk and Göring?’

“Answer: ‘The struggle for power between Funk and Göring,

between Funk and the Ministry for Agriculture and the Ministry

of Communications.’

“Question: ‘How was the struggle finally resolved?’

“Answer: ‘Never. It was a struggle always continuing under the

surface.’”

Then we move on:

“Question: ‘Did Funk, who had very important powers as Minister

of Economics and later as Reichsbank President and as Chief

Plenipotentiary for Economy, actually exercise these powers?’

“Answer: ‘Yes. But the powers of Göring were stronger.’

“Question: ‘Nevertheless, Funk did exercise important powers?’

“Answer: ‘Yes, as President of the Reichsbank, Minister of

Economics, and Plenipotentiary for Economy.’”

Posse was your chief deputy, was he not?

FUNK: Yes, but Posse’s position was somewhat apart. My deputy was

Landfried, and in the Reichsbank, Puhl. They knew these things better

than Herr Posse.

MR. DODD: Well, all right.

FUNK: They should know more about it than Posse.

MR. DODD: You do not think he really knew what he was talking about when

he said you were in the struggle for power? Is that your answer?

FUNK: No.

MR. DODD: [_Turning to the Tribunal._] That becomes Exhibit USA-843. We

have not offered it up to now.

Now, Mr. Witness, I want to ask you about when you first heard of the

impending attack on Russia. I understood you to tell the Tribunal that

you heard about it some time—I think you said—in May. Is that right?

Or June?

FUNK: When Rosenberg was appointed.

MR. DODD: Well, that is what we want to know. When Rosenberg, in April

of 1941, was appointed, you knew then there was to be an attack on

Russia, did you not? But this morning I do not think you made that

clear. Is that not right, Dr. Funk?

FUNK: Yes, I said that the reason given us for that appointment was that

the Führer considered a war with Russia to be possible.

MR. DODD: Yes, but you know what you told the Tribunal this morning. You

said that Lammers sent you notice of Rosenberg’s appointment because of

your interest in improving the trade relations with Russia. That is the

answer you made this morning. Now, that was not so, was it?

FUNK: Yes, Lammers has said that here, too.

MR. DODD: I do not care what Lammers said. I am asking you now if it is

not a fact that you were told by Lammers because you were to co-operate

with Rosenberg in making ready for the occupation of those territories

after the attack began. Now you can answer that very simply. Is that not

true?

FUNK: No.

MR. DODD: Now, we will see. You know, on another occasion you have given

another answer, by the way, I might say, parenthetically. Do you

remember telling the interrogator that you first heard from Hess about

the impending attack on Russia? Do you remember you gave that answer at

one time as the source of your first knowledge? Do you remember telling

us that?

FUNK: No.

MR. DODD: I’ll tell you about that in a minute. We will stay now on this

Rosenberg business.

There is a Document Number 1031-PS and it is dated 28 May 1941, which

would be a little more than a month after the Rosenberg appointment:

“Top secret notes; meeting with Reich Minister Funk.” Do you know what

you were talking about that day, about counterfeiting money for use in

Russia and the Ukraine and the Caucasus? Do you remember it?

FUNK: No.

MR. DODD: You do not remember it? Well, you had better take a look at

the Document. It is Number 1031-PS, which becomes Exhibit USA-844. Do

you not remember the day that your Reichsbank Director Wilhelm said it

should not appear that you were counterfeiting so-called ruble bills for

use in the occupied countries? Rosenberg was at that meeting. It is a

very short memorandum. Have you read it? Oh, it is on Page 4, I think,

of the document that you have; I am sorry. Do you find it? It starts

out: “In the Ukraine and the Caucasus, however, it would become

necessary to maintain the present currency, the ruble...” and so on. You

were talking about money problems in the territory that you expected to

occupy, and that was, well, about a month before the attack and about a

month after Rosenberg’s appointment, was it not? Can you not give me an

answer?

FUNK: I have not found the passage yet. Yes, if these countries were

conquered, it was necessary to deal with these questions.

MR. DODD: The point is that certainly by that time you knew about the

impending attack on the countries that had to be conquered, did you not?

FUNK: I knew nothing of an attack. I only knew of an imminent danger of

war.

MR. DODD: Well, all right, you have it your way. The important thing is

that you were talking about using money in the Ukraine and in the

Caucasus, and it happened about a month later.

FUNK: Yes.

MR. DODD: All right. There are quite a few questions I want to ask. I

would like to close this examination before the adjournment time is due.

Do you have anything you want to say to that? I only offered to show you

that you had knowledge about the impending attack. You knew that

something was going to happen in the East. That is all I wanted to ask.

I think you will agree with that, will you not?

FUNK: Yes.

MR. DODD: All right.

FUNK: Since the appointment of Rosenberg—and I explained that quite

clearly this morning—I knew that a war with Russia was threatening.

MR. DODD: We are all in agreement. We do not need to go further. I

understood you to say this morning that you did not know. That is all

right. I misunderstood you then. I now understand you to say that you

did know it.

FUNK: I said quite clearly this morning that I was informed that the

Führer was expecting a war with Russia, but I am not sure about this

document, as to who has written it.

MR. DODD: Well, I do not know either. I can simply tell you that it was

captured, among other documents, from Rosenberg’s files. I cannot tell

you anything more about it. I think we can talk about something else, if

you will permit me. I really do not think there is any need to go on

with it.

FUNK: Yes, but it is important insofar as these things about the ruble

have been attributed to me.

MR. DODD: I will say it is, too.

FUNK: It says here that I said that the use of the

Reichskreditkassenscheine and the determining of the rate of exchange

involved considerable danger. In other words, I was very doubtful in

regard to the proposals made in this respect.

MR. DODD: All right. I am glad to have your observations about it. Now,

I want to talk to you a little bit about when you took over the

Reichsbank. Posse was your principal deputy in your Ministry of

Economics, was he not?

FUNK: Landfried was my main deputy.

MR. DODD: And by the way, he was at the same meeting that we have just

been talking about. Who was your principal assistant in the Reichsbank?

FUNK: Puhl.

MR. DODD: He was a holdover from the Schacht days, was he not?

FUNK: Yes.

MR. DODD: Did you induce him to remain? Did you ask him to remain?

FUNK: No.

MR. DODD: You said that you selected your personnel. That is what you

told the Tribunal this morning.

FUNK: No. Puhl remained and also Kretschmann and Wilhelm.

MR. DODD: I am not interested in going through your roster of personnel.

I am only asking—and I will tell you the purpose. Puhl was a reliable

banking man, was he not? He was well known in the international banking

circles. He had been offered a position in the Chase Bank in New York at

one time, did you know that?

FUNK: No, I did not know that.

MR. DODD: Well, it is true. In any event, he was quite a man, and he is

a reliable man, is he not?

FUNK: Yes.

MR. DODD: You asked for him as a witness, did you not?

FUNK: Yes.

MR. DODD: And you wanted him to come here because you believe him and

you know he...

FUNK: Yes.

MR. DODD: Now, I want to talk a little bit about the gold in the

Reichsbank. How much gold did you have on hand at the end of the year

1941, roughly? Do not give me a long story about it, because I am not

too much interested. I am merely trying to find out if you were short on

gold in 1941.

FUNK: The gold reserve which I took over amounted to about 500 million

Reichsmark when I received the post of Schacht.

MR. DODD: Well, all right.

FUNK: It was increased in any substantial manner only by the Belgian

gold, as far as I know.

MR. DODD: That is really—it is interesting to hear all about it, but I

have another purpose in mind. From whence did you obtain gold after you

took over? Where did you get any new gold reserves from?

FUNK: Only by changing foreign currency into gold, and then, after I

took over the post, we got in addition the gold reserve of the Czech

National Bank. But we mainly increased our reserve through the Belgian

gold.

MR. DODD: All right. Now, of course, gold became very important to you

as a matter of payment in foreign exchange. You had to pay off in gold

along in 1942 and 1943, did you not? Is that so?

FUNK: It was very difficult to pay in gold.

MR. DODD: I know it was.

FUNK: Because the countries with which we still had business relations

introduced gold embargoes. Sweden refused to accept gold at all. Only in

Switzerland could we still do business through changing gold into

foreign currency.

MR. DODD: I think you have established that you had to use gold as

foreign exchange in 1942 and 1943 and that is all I wanted to know. When

did you start to do business with the SS, Mr. Funk?

FUNK: Business with the SS? I have never done that.

MR. DODD: Yes, sir, business with the SS. Are you sure about that? I

want you to take this very seriously. It is about the end of your

examination, and it is very important to you. I ask you again, when did

you start to do business with the SS?

FUNK: I never started business with the SS. I can only repeat what I

said in the preliminary interrogation. Puhl one day informed me that a

deposit had been received from the SS. First I assumed that it was a

regular deposit, that is, a deposit which remained locked and which was

of no further concern to us, but then Puhl told me later that these

deposits of the SS should be used by the Reichsbank. I assumed they

consisted of gold coins and foreign currency, but principally gold

coins, which every German citizen had had to turn in as it was, and

which were taken from inmates of concentration camps and turned over to

the Reichsbank. Valuables which had been taken from the inmates of

concentration camps did not go to the Reichsbank but, as we have several

times heard here, to the Reich Minister of Finance, that is...

MR. DODD: Just a minute. Were you in the habit of having gold teeth

deposited in the Reichsbank?

FUNK: No.

MR. DODD: But you did have it from the SS, did you not?

FUNK: I do not know.

MR. DODD: You do not know?

Well, now, if Your Honor please, we have a very brief film, and I think

we can show it before we adjourn, and I would like to show it to the

witness before I examine him further on this gold business in the

Reichsbank. It is a picture that was taken by the Allied Forces when

they entered the Reichsbank, and it will show gold teeth and bridges and

so on in their vaults.

FUNK: I know nothing about it.

MR. DODD: I think perhaps before I show the film I would like—I think I

can do it in the time; I do want to complete this this afternoon—to

read you an affidavit from this man Puhl who, you told me a few minutes

ago, was a credible, well-informed man and whom you called as a witness.

This affidavit is dated 3 May 1946.

DR. SAUTER: Mr. President, I protest against the reading of this

affidavit by Herr Puhl. This affidavit most probably—I’m not sure—was

taken here in Nuremberg. We do not know its contents. The Prosecution

surprises us today with an affidavit of which we know nothing, and

within ten minutes a dozen documents are thrown at us, of which the

Prosecution asserts they are only short documents, whereas, for

instance, one affidavit among them contains twelve pages, I believe. It

is quite impossible for us, in the course of the extreme speed at which

this examination is taking place, to follow these statements and these

documents. Therefore I have to protest against the use of an affidavit

of that kind at this moment.

MR. DODD: Well, this affidavit was taken at Baden-Baden, Germany, on the

3rd day of May. We have been trying for a long time to put this part of

this case together, and we have finally succeeded. Certainly we did not

turn it over to Dr. Sauter, because we wanted to use it for just the

purposes that I am trying to put it to now. And it is an affidavit of

his assistant Puhl, whom he called as a witness and from whom he expects

to have an interrogatory. It has to do with a very important part in

this case. I might say that if we are permitted to use it, certainly Dr.

Sauter will have a chance to re-examine on it and he will have all night

to study it if he would like to look it over.

THE PRESIDENT: Mr. Dodd, are you wanting to cross-examine the witness

about this document?

MR. DODD: Yes, I want to read it to him and I want to ask him a couple

of questions about it. I want him to know it because it is the basis for

two or three questions of cross-examination, and to impeach him for

statements he has already made about the gold.

THE PRESIDENT: You may do that. But Dr. Sauter, of course, will be able,

if he wishes to do so, to apply afterwards that the witness should be

produced for cross-examination. And he will have time in which he can

consider the affidavit and make any comments that he wants to about it.

MR. DODD: Very well, Your Honor.

DR. SAUTER: Mr. President, may I make just one statement? Today a case

occurred where the Prosecution protested against the fact that a

document was used of which the Prosecution had not previously received

an English translation. The representative of the Prosecution told me he

did not understand German, and therefore the document had to be

translated. I am of the opinion that the Defense should get the same

right as the Prosecution.

If one English document after the other is thrown at me without my

having the slightest idea of the contents, then I cannot answer them.

Difficulties are constantly increasing. For instance, I have received

documents here which contain 12 pages. One sentence is read out of such

a document. The defendant is not given time to read even one single

further paragraph. I myself am not given time. And in spite of that it

is expected that the defendant immediately explains one single sentence

taken out of the context, without having the possibility of examining

the document. That, in my opinion, is asking too much.

THE PRESIDENT: Dr. Sauter, you had a translation in German of nearly

every document, if not every document. And you have also been given

every opportunity to consider documents when they have been translated

into German. And that opportunity will be given to you hereafter and if

there are any documents which are being used in cross-examination now

which are not in German, they will be translated into German, and you

will have them then. But once the witness is under cross-examination,

the documents may be used. If you want to re-examine upon the documents

after you have them in German, you will be able to do so.

DR. SAUTER: Mr. President, we Defense Counsel also desire to further the

proceedings and not to delay them. But it does not help me at all if, in

a week or two, when I shall finally have been able to examine the

documents thrown today on the table, I must turn to you, Mr. President,

with the request to be permitted to question the witness again. We are

glad once we are through with the examination of the witnesses. But we

simply cannot follow Mr. Dodd’s method. I cannot follow, and the

defendant cannot either. One cannot expect the defendant to explain an

isolated sentence taken out of the context, if he had no chance to

examine the document as a whole.

THE PRESIDENT: Mr. Dodd.

MR. DODD: May I proceed to examine on the document?

THE PRESIDENT: Mr. Dodd, have you got any objection to Dr. Sauter’s

seeing the document?

MR. DODD: Yes, indeed I have. I think it would be a new rule. Ever since

this Defense opened, we have presented and confronted documents for the

purpose of impeaching the credibility of various witnesses, and used

these documents, and it goes to the very foundation of

cross-examination. If we have to turn such documents over to the Defense

before we cross-examine, the whole purpose of cross-examination is gone.

THE PRESIDENT: Mr. Dodd, if you are putting the document in and putting

it to the witness as a document, then his counsel is entitled, I should

have thought, to have it at the same moment.

MR. DODD: We are perfectly willing to give him a German copy right now.

It is here for him, if he wants to have it, and we were ready with it

when we came in the courtroom.

THE PRESIDENT: In German?

MR. DODD: Yes, Mr. President.

THE PRESIDENT: I think the best thing will be for us to adjourn now, and

then you will hand to Dr. Sauter when you use the document a translation

of it in German.

MR. DODD: Yes; tomorrow morning, when we use it.

THE PRESIDENT: When you use it.

MR. DODD: Very well, Sir.

[_The Tribunal adjourned until 7 May 1946 at 1000 hours._]

ONE HUNDRED

AND TWENTY-THIRD DAY

Tuesday, 7 May 1946

_Morning Session_

[_The Defendant Funk resumed the stand._]

MR. DODD: Witness, you had a conference with Dr. Sauter last night after

we recessed Court, did you not, for about an hour?

FUNK: Yes.

MR. DODD: Now we were talking yesterday, when the Tribunal rose, about

the gold deposits in the Reichsbank, and I had asked you when you

started to do business with the SS, and as I recall, you said you did

not do any business with the SS. And then we went along a little further

and you did say that the SS did deposit some materials, some property

belonging to people in concentration camps. Do I properly understand

your testimony to have been, in substance, as I have stated it?

FUNK: No. I said that Herr Puhl—I do not remember in what year—told me

one day that a gold deposit had arrived from the SS and he also told

me—and he said it somewhat ironically—it would be better that we

should not try to ascertain what this deposit was. As I said yesterday,

it was impossible in any case to ascertain what was deposited. When

something was deposited, the Reichsbank had no right to look into it to

see of what it consisted. Only later, when Herr Puhl made another report

to me, did I realize that when he used the word “deposit” it was a wrong

term; it was not a deposit but it was a delivery of gold. There is of

course a great difference. I personally assumed that it concerned a gold

deposit, that this gold consisted of gold coins or other foreign

currency or small bars of gold or something similar, which had been

brought in from the inmates of the concentration camps—everybody in

Germany had to hand these things over—and that it was being handed to

the Reichsbank, which would use it. Since you mentioned this matter, I

remember another fact of which I was not conscious until now. I was

asked about it during my interrogation, and during this interrogation I

could not say “yes” to it because at that time I did not remember it. I

was asked during my interrogation whether I had the agreement of the

Reichsführer that the gold which was delivered to the Reichsbank should

be utilized by the Reichsbank. I said I did not remember. However, if

Herr Puhl makes such a statement under oath, I will not and cannot

dispute it. It is evident that if gold were delivered which should come

to the Reichsbank, then the Reichsbank had the right to utilize such

gold. I certainly never spoke more than twice or at most three times to

Herr Puhl about this matter. What these deposits or these deliveries

consisted of and what was done with these deliveries, how they were

utilized, I do not know. Herr Puhl never informed me about that either.

MR. DODD: Well now, let us see. You were not ordinarily in the habit, in

the Reichsbank, of accepting jewels, monocles, spectacles, watches,

cigarette cases, pearls, diamonds, gold dentures, were you? You

ordinarily accepted that sort of material for deposit in your bank?

FUNK: No; there could be no question, in my opinion, that the bank had

no right to do that, because these things were supposed to be delivered

to an entirely different place. If I am correctly informed about the

legal position, these things were supposed to be delivered to the Reich

Office for Precious Metals and not to the Reichsbank. Diamonds, jewels,

and precious stones were not the concern of the Reichsbank because it

was not a place of sale for these things. And in my opinion, if the

Reichsbank did that, then it was unlawful.

MR. DODD: That is exactly right.

FUNK: If that happened, then the Reichsbank committed an illegal act.

The Reichsbank was not authorized to do that.

MR. DODD: And is it your statement that if it was done you did not know

anything about it?

FUNK: No.

MR. DODD: You did not know?

FUNK: No.

MR. DODD: You were frequently in the vaults of the Reichsbank, were you

not? As a matter of fact you liked to take visitors through there. I

say, you were frequently in the vaults of the bank yourself?

FUNK: Yes, I was, where the gold bars were kept.

MR. DODD: I will come to the gold bars in a minute. I just want to

establish that you were in the vaults frequently, and your answer, as I

understand it, is “yes” that you were?

FUNK: It was the usual thing if someone came to visit us, particularly

foreign visitors, to show them the rooms where the gold was kept and we

always showed them the gold bars and there was always the usual joke as

to whether one could lift a gold bar or not. But I never saw anything

else there except gold bars.

MR. DODD: How heavy were these gold bars that you had in the vaults?

FUNK: They were the usual gold bars which were used in commerce between

banks. I think they varied in weight. I think the gold bars weighed

about 20 kilograms. Of course, you can figure it out. If one...

MR. DODD: That is all right. That is satisfactory. When you were in the

vaults you never saw any of these materials that I mentioned a few

minutes ago—jewels, cigarette cases, watches, and all that business?

FUNK: Never. I was in the vaults at the most four or five times and then

only to show this very interesting spectacle to visitors.

MR. DODD: Only four or five times from 1941 to 1945?

FUNK: I assume so. It was not more often. I only went down there with

visitors, particularly foreign visitors.

MR. DODD: Are you telling the Tribunal that as head of the Reichsbank

you never made an inspection, so to speak, of the vaults, never took a

look at the collateral? Did you not ever make an inspection before you

made your certifications as to what was on hand? Certainly every

responsible banker does that regularly, does he not? What is your

answer?

FUNK: No, never. The business of the Reichsbank was not conducted by the

President. It was conducted by the Directorate. I never bothered about

individual transactions, not even gold transactions, or even about

slight variations in the individual gold reserves, _et cetera_. If large

deliveries of gold were expected, the Directorate reported to me. The

Directorate conducted the business, and I believe the detailed

transactions were probably known only to the director responsible for

that particular department.

MR. DODD: Now, did you ever do any business with pawnshops?

FUNK: With what?

MR. DODD: Pawnshops. Do you not know what a pawnshop is? There must be a

German word for that.

FUNK: Pfandleihe.

MR. DODD: Whatever it is, you know what they are, do you not?

FUNK: Where you pawn something.

MR. DODD: Yes.

FUNK: No, I never did any...

MR. DODD: All right, we will get to that a little later too. Right now,

since you do not seem to recall that you ever had any or saw any such

materials as I have described in your vaults, I ask that we have an

opportunity to show you a film which was taken of some materials in your

vaults when the Allied Forces arrived there.

[_Turning to the President._] I would ask, Mr. President, that the

defendant be permitted to come down, where he can watch the film, so

that his memory will be properly refreshed.

THE PRESIDENT: Yes, you may have him brought down.

[_Moving pictures were then shown._]

THE PRESIDENT: Mr. Dodd, at some stage, I take it, you will offer

evidence as to where that film was made.

MR. DODD: Yes, I will. There will be an affidavit as to the

circumstances under which the film was made, who was present, and why;

but, for the information of the Tribunal, it was taken in Frankfurt when

the Allied Forces captured that city and went into the Reichsbank

vaults.

[_Turning to the defendant._] Now, Witness, having seen these pictures

of materials that were found in your Reichsbank vaults a year ago, or a

little earlier than a year ago, you now recall that you did have such

material on hand over a period of 4 or 5 years, 3 or 4 years, 3 years—I

think actually a little longer than 3 years?

FUNK: I have never seen anything of this sort. I also have the

impression that a large part of these things which were shown in the

film came from deposits, because people, thousands of them, had locked

deposits which they delivered to the Reichsbank, in which they put their

jewels and other valuables, as we have just seen. Probably some were

hidden valuables, which they should have given up, such as foreign

money, foreign exchange, gold coins, _et cetera_. As far as I know we

had thousands of closed deposits into which the Reichsbank could not

look. I never saw a single item such as these shown in the film, and I

cannot imagine where these things came from, to whom they belonged, and

to what use they were put.

MR. DODD: Well, that is an interesting answer. I asked you yesterday,

and I ask you again now, did you ever hear of anybody depositing his

gold dentures in a bank for safekeeping? [_There was no response._]

You saw that film, and you saw the gold bridgework, or mouth-plates, did

you not, and the other dental work? Certainly nobody ever deposited that

with a bank. Is that not a fact?

FUNK: As far as the teeth are concerned, this is a special case. Where

these teeth came from I do not know. It was not reported to me, nor do I

know what was done with those teeth. I am convinced that items of this

sort, when they were delivered to the Reichsbank, had to be turned over

to the Office for Precious Metals, for the Reichsbank was not a place

where gold was worked. Neither do I know whether the Reichsbank even had

the technical facilities to work this metal. I do not know about that.

MR. DODD: And not only did people not deposit gold teeth, but they never

deposited eyeglass rims, did they, such as you saw in the picture?

FUNK: That is right. These things are, of course, no regular deposits.

That goes without saying.

MR. DODD: And you saw there were some objects that obviously were in the

process of being melted down. Practically the last scene in that film

showed something that looked as if it had been in the process of being

melted, did it not? You saw it?

Well, will you answer me, please, “yes” or “no”? Did you see it?

FUNK: I cannot say that exactly. I do not know whether they were melting

it down. I have no knowledge of these technical matters. To be sure, now

I see quite clearly what was not known to me until now, that the

Reichsbank did the technical work of melting down gold articles.

MR. DODD: Well, now, let us see what your assistant, Mr. Puhl, says

about that, the man who you told us yesterday was a credible gentleman,

and whom you asked the Tribunal to call as a witness on your behalf. I

am holding in my hand an affidavit executed by him on the 3rd day of May

1946 at Baden-Baden, Germany.

“Emil Puhl, being duly sworn, deposes and says:

“1. My name is Emil Puhl. I was born on 28 August 1889 in

Berlin, Germany. I was appointed a member of the Board of

Directors of the Reichsbank in 1935 and Vice President of the

Reichsbank in 1939, and served in these positions continuously

until the surrender of Germany.

“2. In the summer of 1942 Walter Funk, President of the

Reichsbank and Reich Minister of Economics, had a conversation

with me and later with Mr. Friedrich Wilhelm, who was a member

of the Board of Directors of the Reichsbank. Funk told me that

he had arranged with Reichsführer Himmler to have the Reichsbank

receive in safe custody gold and jewels for the SS. Funk

directed that I should work out the arrangements with Pohl, who,

as head of the economic section of the SS, administered the

economic side of the concentration camps.

“3. I asked Funk what the source was of the gold, jewels, bank

notes, and other articles to be delivered by the SS. Funk

replied that it was confiscated property from the Eastern

Occupied Territories, and that I should ask no further

questions. I protested against the Reichsbank handling this

material. Funk stated that we were to go ahead with the

arrangements for handling the material, and that we were to keep

the matter absolutely secret.

“4. I then made the necessary arrangements with one of the

responsible officials in charge of the cash and safes

departments for receiving the material, and reported the matter

to the Board of Directors of the Reichsbank at its next meeting.

On the same day Pohl, of the economic section of the SS,

telephoned me and asked if I had been advised of the matter. I

said I would not discuss it by telephone. He then came to see me

and reported that the SS had some jewelry for delivery to the

Reichsbank for safekeeping. I arranged with him for delivery and

from then on deliveries were made from time to time, from August

1942 throughout the following years.

“5. The material deposited by the SS included jewelry, watches,

eyeglass frames, dental gold, and other gold articles in great

abundance, taken by the SS from Jews, concentration camp

victims, and other persons. This was brought to our knowledge by

SS personnel who attempted to convert this material into cash

and who were helped in this by the Reichsbank personnel with

Funk’s approval and knowledge. In addition to jewels and gold

and other such items, the SS also delivered bank notes, foreign

currency, and securities to the Reichsbank to be handled by the

usual legal procedure established for such items. As far as the

jewelry and gold were concerned, Funk told me that Himmler and

Von Krosigk, the Reich Minister of Finance, had reached an

agreement according to which the gold and similar articles were

on deposit for the account of the State and that the proceeds

resulting from the sale thereof would be credited to the Reich

Treasury.

“6. From time to time, in the course of my duties, I visited the

vaults of the Reichsbank and observed what was in storage. Funk

also visited the vaults from time to time.

“7. The Golddiskontobank, at the direction of Funk, also

established a revolving fund which finally reached 10 to 12

million Reichsmark for the use of the economic section of the SS

to finance production of materials by concentration camp labor

in factories run by the SS.

“I am conversant with the English language and declare that the

statements made herein are true to the best of my knowledge and

belief.”

Document Number 3944-PS; it is signed by Emil Puhl and duly witnessed.

Mr. President, I would like to offer this affidavit as Exhibit USA-846

and the film as Exhibit USA-845.

[_Turning to the defendant._] Now, Witness, having heard this affidavit

from your close associate and your brother director of the Board of

Directors of the Reichsbank, and the man who, you admitted yesterday was

a credible and truthful man, what do you now say to this Tribunal about

your knowledge of what was going on between your bank and the SS?

FUNK: I declare that this affidavit by Herr Puhl is not true. I spoke to

Herr Puhl about the entire matter of these gold deposits, as I have

repeatedly stated, three times at most, but I believe it was only twice.

I never exchanged a word with Herr Puhl regarding precious stones and

jewelry. It is incredible to me that a man who most certainly also

carried out certain functions in his agreements with the SS—that is,

with Herr Pohl—now tries to put the blame on me. On no account will I

take this responsibility and I request that Herr Puhl be called here,

and that in my presence he may declare in all detail when, where, and

how he has spoken to me about these different items, and to what extent

I told him what to do.

I repeat my statement that I knew nothing about jewelry and other

deliveries from concentration camps, and that I have never spoken to

Herr Puhl about these things. I can only say again what I said at the

beginning, that Herr Puhl once told me that a gold deposit had arrived

from the SS. I remember it now, it had escaped me as I did not pay too

much attention to the entire matter. I remember that, urged by him, I

spoke to the Reichsführer about whether the Reichsbank could utilize

these items. The Reichsführer said, “Yes.” But at no time did I speak to

the Reichsführer about jewelry and precious stones and watches and such

things. I spoke only of gold.

Concerning what Puhl states about a financing scheme—I believe that

goes back a number of years—I know Herr Puhl came to me one day and

said that he was asked to give a credit for certain factories of the SS

and somebody was negotiating with him about the matter. I asked him, “Is

this credit secure? Do we get interest?” He said, “Yes, up till now they

have had a credit from the Dresdner Bank and it must now be repaid.” I

said, “Very well, do that.” After that I never heard anything more about

this matter. It is news to me that this credit was so large, that it was

made by the Golddiskontobank. I do not remember it, but it is entirely

possible. However, I never heard any more about this credit, which Herr

Puhl had given to certain factories. He always spoke about factories,

about businesses; it was a bank credit which had previously been given

by a private bank. I remember I asked him once, “Has this credit been

repaid?” That was some considerable time later. He said, “No, it has not

been repaid yet.” That is all I know about these matters.

MR. DODD: All right. Now, what do you know about this—one part of the

affidavit you have not covered—what do you know about the last part

that says you established a revolving fund for the SS for the building

of factories near the concentration camps? Do you remember that? I read

it to you. Puhl says, “The Reichsbank, at the direction of Funk,

established a revolving fund which finally reached 10 to 12 million

Reichsmark for the use of the economic section of the SS to finance

production of materials by concentration camp labor in factories run by

the SS.” Do you admit that you did that?

FUNK: Yes, that is what I just mentioned; that Herr Puhl told me one

day, I believe in 1939 or 1940, that some gentlemen from the economic

section of the SS had spoken to him regarding a credit, which until that

time had been granted by the Dresdner Bank and which they would now like

to have from the Reichsbank. I asked Herr Puhl, “Will we get interest;

is the credit secure?” He said, “Yes.” So I said, “Give them this

credit,” and later on I said just what I mentioned above. That is all I

know about the matter. I know nothing more.

MR. DODD: Now, you also got a fee for handling these materials that you

saw in the film, did you not, from the SS? The bank was paid for

carrying on its part of this program?

FUNK: I did not understand that.

MR. DODD: I say, is it not a fact that you received payment from the SS

over this period of more than 3 years for handling these materials which

they turned over to you?

FUNK: I do not know about that.

MR. DODD: Well, you would know, would you not, as President of the bank,

if you did receive payment? How could you help knowing?

FUNK: These were probably such small payments that no one ever reported

them to me. I do not know anything about any payment from the SS.

MR. DODD: What would you say if I tell you that Herr Puhl said that the

bank did receive payment during these years, and that there were

altogether some 77 shipments of materials such as you saw here this

morning? Do you say that is untrue, or do you agree with it?

FUNK: That might be quite true, but I was never informed about these

things. I know nothing about it.

MR. DODD: Is it conceivable that you, as President of the Reichsbank,

could not know about 77 such shipments and about a transaction that you

were being paid to handle? Do you think that is a likely story?

FUNK: If the Board of Directors did not report to me about these things,

I cannot have known about them, and I declare again quite definitely

that I was not informed about these details. On one occasion I was told

about a gold deposit of the SS which was brought to us. Later on it

transpired that it was a delivery from the SS. And then I knew about

this credit transaction. That is all I know about these matters.

MR. DODD: Now, let me tell you something that may help you a little bit.

As a matter of fact, your bank sent memoranda to people concerning this

material from time to time, and I think you know about it, do you not?

You made up memoranda stating what you had on hand and whom you were

transferring it to. Are you familiar with any such memoranda?

FUNK: No.

MR. DODD: Well, then you had better take a look at Document Number

3948-PS, Exhibit USA-847, and see if it refreshes your memory. That is

3948-PS.

[_The document was handed to the defendant._]

Trial of the Major War Criminals Before the International Military Tribunal, Nuremburg, 14 November 1945-1 October 1946, Volume 13 · 第 11 / 42 题