Now, this document is a memorandum apparently addressed to the Municipal

Pawn Brokerage in Berlin, and it is dated 15 September 1942. Now, I am

not going to read all of it, although it is a very interesting document,

but as you can see, the memorandum says, “We submit to you the following

valuables with the request for the best possible utilization.” Then you

list 247 platinum and silver rings, 154 gold watches, 207 earrings,

1,601 gold earrings, 13 brooches with stones—I am just skipping

through; I am not reading all of them—324 silver wrist watches, 12

silver candle sticks, goblets, spoons, forks, and knives, and then, if

you follow down here quite a way, diverse pieces of jewelry and watch

casings, 187 pearls, four stones said to be diamonds. And that is signed

“Deutsche Reichsbank, Hauptkasse” and the signature is illegible.

Perhaps, if you look at the original, you might tell us who signed it.

FUNK: No, I do not know who signed it.

MR. DODD: You have the original?

FUNK: I do not know.

MR. DODD: Well, look at the signature there and see if you recognize it

as the signature of one of your workers.

FUNK: It says—somebody from our cashier’s office signed it. I do not

know the signature.

MR. DODD: Somebody from your bank, was it not?

FUNK: Yes, from the cashier’s department. I do not know the signature.

MR. DODD: Do you want this Tribunal to believe that employees and people

in your bank were sending lists out to municipal pawn brokers without it

ever coming to your attention?

FUNK: I know nothing at all about these events. They can only be

explained in that things were apparently delivered to the Reichsbank

which it was not supposed to keep. That is obvious.

MR. DODD: Well, I would also like you to look at Document Number

3949-PS, which is dated 4 days later, 19 September 1942, Exhibit

USA-848. Now, you will see this is a memorandum concerning the

conversion of notes, gold, silver, and jewelry in favor of the Reich

Minister of Finance, and it also says that it is “a partial statement of

valuables received by our precious metals department.” Again I think it

is unnecessary to read it all. You can look at it and read it, but the

last two paragraphs, after telling what the shipments contained as they

arrived on 26 August 1942, say:

“Before we remit the total proceeds, to date 1,184,345.59

Reichsmark to the Reichshauptkasse for the account of the Reich

Minister of Finance, we beg to be informed under what reference

number this amount and subsequent proceeds should be

transferred.

“It might further be of advantage to call the attention of the

responsible office of the Reich Minister of Finance in good time

to the amounts to be transferred from the Deutsche Reichsbank.”

And again that is signed, “Deutsche Reichsbank, Hauptkasse,” and there

is a stamp on there that says, “Paid by check, Berlin, 27 October 1942,

Hauptkasse.”

FUNK: For this document, that is, this note to the Reich Minister of

Finance, I believe I am able to give an explanation, and that is on the

basis of testimony given here by witnesses who came from concentration

camps. The witness Ohlendorf, if I remember correctly, and another one,

have testified that the valuables which had been taken from the inmates

of concentration camps had to be turned over and were delivered to the

Reich Minister of Finance. Now, I assume that the technical procedure

was that these things were first brought to the Reichsbank by mistake.

The Reichsbank, however—and I keep repeating it—could do nothing with

the pearls, jewelry, and similar items which are mentioned here, and

therefore turned over these items to the Reich Minister of Finance or

they were used for the account of the Reich Minister of Finance. That is

apparent from this document. In other words, this merely is a statement

of account sent by the Reichsbank for the Reich Minister of Finance.

That is, I believe, the meaning of this document.

MR. DODD: Well, indeed, you did hear Ohlendorf say that these

unfortunate people who were exterminated in these camps had their

possessions turned over to the Reich Minister of Finance. I believe he

testified to that effect here. Now, you also...

FUNK: That is what I heard here. These things were news to me. However,

I did not know that the Reichsbank...

MR. DODD: You have told us that twice already.

FUNK: ...that the Reichsbank dealt with these matters in such detail.

MR. DODD: Are you telling us that you did not know they dealt with them

in such detail, or that you did not know they dealt with them at all? I

think that is important. What is your answer, that you did not know they

went into them in such detail or that you did not know anything about

it?

FUNK: I personally had nothing to do with it at all.

MR. DODD: Did you know about it?

FUNK: No.

MR. DODD: You never heard of it?

FUNK: I did not know at all that any jewelry, watches, cigarette cases,

and so forth were delivered to the Reichsbank; that is news to me.

MR. DODD: Did you know that anything came from concentration camps to

the Reichsbank? Anything at all?

FUNK: Yes, the gold, of course. I already said that.

MR. DODD: Gold teeth?

FUNK: I have said that—no.

MR. DODD: What gold from the concentration camps?

FUNK: The gold about which Herr Puhl had reported to me, and I assumed

that these were coins and other gold which had to be deposited at the

Reichsbank anyway, and which the Reichsbank could utilize according to

the legal regulations. Otherwise, I know nothing about it.

MR. DODD: Just what did Himmler say to you and what did you say to

Himmler when you had this conversation, as you tell us, about this gold

from the concentration camp victims? I think the Tribunal might be

interested in that conversation. What did he say, and what did you say,

and where was the conversation held?

FUNK: I do not remember any more where the conversation was held. I saw

Himmler very rarely, perhaps once or twice. I assume that it was on the

occasion of a visit in the field quarters of Lammers, where Himmler’s

field quarters were also located. It must have been there. On that

occasion we spoke very, very briefly about that.

MR. DODD: Wait just a minute. Will you also tell us when it was?

FUNK: Possibly during the year 1943; it might have been 1944, I do not

remember.

MR. DODD: All right.

FUNK: I attached no importance whatsoever to this matter. In the course

of the conversation I put the question, “There is a gold deposit from

you, from the SS, which we have at the Reichsbank. The members of the

board of directors have asked me whether the Reichsbank can utilize

that.” And he said, “Yes.” I did not say a word about jewelry or things

of that kind or gold teeth or anything of that sort. The entire

conversation referred only very briefly to this thing.

MR. DODD: Do you mean to tell us that an arrangement was made with your

bank independently of you and Himmler, but by somebody in the SS and

somebody in your bank—that you were not the original person who

arranged the matter?

FUNK: That is right. It was not I.

MR. DODD: Who in your bank made that arrangement?

FUNK: Possibly it was Herr Puhl or maybe somebody else from the

Reichsbank Directorate who made the arrangement with one of the

gentlemen of the economic section in the SS. And I was only informed of

it by Herr Puhl very briefly.

MR. DODD: Did you know Herr Pohl, P-o-h-l, of the SS?

FUNK: I imagine it was he. Herr Pohl never spoke to me about it.

MR. DODD: You do not know the man?

FUNK: I must certainly have seen him at some time, but Herr Pohl never

spoke to me about these matters. I never spoke to him.

MR. DODD: Where did you see him, in the bank?

FUNK: Yes, I saw him once in the bank when he spoke to Puhl and other

gentlemen of the Reichsbank Directorate during a luncheon. I walked

through the room and I saw him sitting there but I personally never

spoke with Herr Pohl about these questions. This is all news to me, this

entire matter.

MR. DODD: Well, do you recall the testimony of the witness Hoess in this

courtroom not so long ago? You remember the man? He sat where you are

sitting now. He said that he exterminated between 2½ and 3 million Jews

and other people at Auschwitz. Now, before I ask you the next question I

want you to recall that testimony and I will point something out for you

about it that may help you. You recall that he said that Himmler sent

for him in June 1941, and that Himmler told him that the final solution

of the Jewish problem was at hand, and that he was to conduct these

exterminations. Do you recall that he went back and looked over the

facilities in one camp in Poland and found it was not big enough to kill

the number of people involved and he had to construct gas chambers that

would hold 2,000 people at a time, and so his extermination program

could not have got under way until pretty late in 1941, and you observe

that your assistant and credible friend Puhl says it was in 1942 that

these shipments began to arrive from the SS?

FUNK: No, I know nothing about the date. I do not know when these things

happened. I had nothing to do with them. It is all news to me that the

Reichsbank was concerned with these things to this extent.

MR. DODD: Then I take it you want to stand on an absolute denial that at

any time you had any knowledge of any kind about these transactions with

the SS or their relationship to the victims of the concentration camps.

After seeing this film, after hearing Puhl’s affidavit, you absolutely

deny any knowledge at all?

FUNK: Only as far as I have mentioned it here.

MR. DODD: I understand that; there was some deposit of gold made once,

but no more than that. That is your statement. Let me ask you something,

Mr. Funk...

FUNK: Yes; that these things happened consistently is all news to me.

MR. DODD: All right. You know you did on one occasion at least, and

possibly two, break down and weep when you were being interrogated, you

recall, and you did say you were a guilty man; and you gave an

explanation of that yesterday. You remember those tears. I am just

asking you now; I am sure you do. I am just trying to establish the

basis here for another question. You remember that happened?

FUNK: Yes.

MR. DODD: And you said, “I am a guilty man.” You told us yesterday it

was because you were upset a little bit in the general situation. I am

suggesting to you that is it not a fact that this matter that we have

been talking about since yesterday has been on your conscience all the

time and that was really what is on your mind, and it has been a shadow

on you ever since you have been in custody? And is it not about time

that you told the whole story?

FUNK: I cannot tell more to the Tribunal than I have already said, that

is the truth. Let Herr Puhl be responsible before God for what he put in

the affidavit; I am responsible for what I state here. It is absolutely

clear that Herr Puhl is now trying to put the blame on me and to

exculpate himself. If he has done these things for years with the SS, it

is his guilt and his responsibility. I have only spoken to him two or

three times about these things, that is, about the things I have

mentioned here.

MR. DODD: You are trying to put the blame on Puhl, are you not?

FUNK: No. He is blaming me and I repudiate that.

MR. DODD: The trouble is, there was blood on this gold, was there not,

and you knew this since 1942?

FUNK: I did not understand.

MR. DODD: Well, I would like to ask you one or two questions about two

short documents. It will take but a short time. You told the Tribunal

yesterday that you had nothing to do with any looting of these occupied

countries. Do you know what the Roges corporation was?

FUNK: Yes. I do not know in detail what they did. I know only that it

was an organization which made official purchases for various Reich

departments.

MR. DODD: This Roges corporation purchased on the black market in France

with the surpluses from the occupation cost fund, did it not?

FUNK: I was against this type of purchases in the black market.

MR. DODD: I am not asking you whether you were for it or against it. I

was simply asking you if it is not a fact that they did it.

FUNK: I do not know.

MR. DODD: All right. You had better take a look at Document Number

2263-PS, which is written by one of your associates, Dr. Landfried, whom

you also asked for as a witness here and from whom you have an

interrogatory. This is a letter dated 6 June 1942, addressed to the

Chief of the OKW Administrative Office:

“In answer to my letter of 25 April 1942”—and so on—“100

million Reichsmark were put at my disposal from the Occupation

Cost Fund by the OKW. This amount has already been disposed of

except for 10 million Reichsmark, since the demands of the Roges

(Raw Material Trading Company), Berlin, for the acquisition of

merchandise on the black market in France, were very heavy. In

order not to permit a stoppage in the flow of purchases which

are made in the interest of the prosecution of the war, further

amounts from the occupation cost fund must be made available.

According to information from Roges and from the economic

department of the Military Commander in France, at least 30

million Reichsmark in French francs are needed every 10 days for

such purchases.

“As, according to information received from Roges, an increase

of purchases is to be expected, it will not be sufficient to

make available the remaining 100 million Reichsmark in

accordance with my letter of 25 April 1942, but over and above

this, an additional amount of 100 million Reichsmark will be

necessary.”

It is very clear from that letter written by your associate Landfried

that the Roges corporation, which was set up by your Ministry, was

engaged in black market operations in France with money extorted from

the French through excessive occupation costs, is it not?

FUNK: That the Roges made such purchases is true. These things have

already been dealt with here in connection with the orders and

directives which the Four Year Plan gave for these purchases on the

black market. However, these are purchases which were arranged and

approved by the state organization. What we especially fought against

were the purchases without limits in the black market. I already

mentioned yesterday that I finally succeeded in getting a directive from

the Reich Marshal that all purchases in the black market were to be

stopped because through these purchases naturally merchandise was

withdrawn from the legal markets.

MR. DODD: You told us that yesterday. That was 1943. There was not much

left in France on the black market or white market or any other kind of

market by that time, was there? That country was pretty well stripped by

that time, as is shown in the letters.

FUNK: In 1943 I believe a great deal was still coming from France. There

was continuous production going on in France and it was considerable.

The official French statistics show that even in 1943 large quantities

of the total production were being diverted to Germany. These quantities

were not a great deal less than in 1941 and ’42.

MR. DODD: Well, in any event I also want you to talk a little bit about

Russia, because I understood you to say yesterday you did not have much

to do with that. Schlotterer was your man who was assigned to work with

Rosenberg, was he not?

FUNK: From the beginning I assigned Ministerial Director Dr. Schlotterer

to Rosenberg, so that only one economic department, the competent

department for the Minister for the Eastern Occupied Territories, would

work in Russia, and not two.

DR. DODD: That is all I want to know. He was assigned. And he

participated in the program of stripping Russia of machines, materials,

and goods, which went on for some considerable period of time; you knew

about it.

FUNK: No, that is not true. This man did not have this task. These

transactions were handled by the Economic Department East which, I

think, came under the Four Year Plan. As far as I know these

transactions were not handled by Minister Rosenberg and certainly not by

the Ministry of Economics.

MR. DODD: It is a different story on different occasions. I think the

best way is to read your interrogation. On 19 October 1945 you were

interrogated here in Nuremberg. You were asked this question:

“And part of the plan was to take machines, materials and goods

out of Russia and bring them into Germany, was it not?”

And you answered:

“Yes, most certainly, but I did not participate in that. But in

any case it was done.”

The next question:

“Question: Yes, and you yourself participated in the discussions

concerning these plans, and also your representative, Dr.

Schlotterer?

“Answer: I myself did not participate.

“Question: But you gave the power to act for you in that

connection to Dr. Schlotterer?

“Answer: Yes; Schlotterer represented me in economic questions

in the Rosenberg Ministry.”

FUNK: No, that is not true. This testimony is completely confused,

because Schlotterer joined the Rosenberg Ministry. He became head of the

economic department there. Also, this testimony is not true to this

extent, since we certainly sent more machines into Russia than we took

out of Russia. When our troops came to Russia everything had been

destroyed, and in order to put the economy there in order, we had to

send large quantities of machinery and other goods to Russia.

MR. DODD: Do you mean to say that you did not make these answers that I

have just read to you when you were interrogated?

FUNK: Those answers are not correct.

MR. DODD: You know, it is very interesting that you told us yesterday

that the answers to the questions put to you by Major Gans were

incorrect. I posed another interrogation to you yesterday and you said

that was incorrect. Now a third man has interrogated you, and you say

that one is incorrect.

FUNK: No, I say what I said is wrong.

MR. DODD: Well, of course, that is what I am talking about.

FUNK: That is wrong.

MR. DODD: I will submit that interrogation in evidence; it is not in

form to be submitted, but I would like to submit it a little later, with

the Tribunal’s permission.

THE PRESIDENT: You will inform us, when you do, as to the number and so

on?

MR. DODD: Yes, I will. I have no further questions.

THE PRESIDENT: Do any of the other prosecutors wish to cross-examine?

STATE COUNSELLOR OF JUSTICE M. Y. RAGINSKY (Assistant Prosecutor for the

U.S.S.R.): After Mr. Dodd’s cross-examination I have a few supplementary

questions to ask.

Defendant Funk, you testified yesterday that your Ministry at the time

of the attack on the Soviet Union had very limited functions, and that

you yourself were not a minister in the true sense of the word. In this

connection I want to ask you a few questions regarding the structure of

the Ministry of Economics. Tell me, are you familiar with the book by

Hans Quecke, entitled, _The Reich Ministry of Economics_? Do you know

about this book?

FUNK: No.

MR. COUNSELLOR RAGINSKY: You do not know? Are you familiar with the name

of Hans Quecke?

FUNK: Hans Quecke?

MR. COUNSELLOR RAGINSKY: Yes. Hans Quecke. He was a counsellor in the

Ministry of Economics.

FUNK: Quecke was a ministerial director in the Ministry of Economics.

MR. COUNSELLOR RAGINSKY: And he, of course, knew about the structure of

the Ministry of Economics and about its functions. Am I right?

FUNK: Certainly. He must have known about that.

MR. COUNSELLOR RAGINSKY: I present this book in evidence to the Tribunal

as Exhibit USSR-451, and you, Witness, will receive a photostat copy of

the section of this book in order that you can follow me. Please open it

at Page 65, last paragraph. Have you found the passage in question?

FUNK: I have not found it yet. I can only see...

MR. COUNSELLOR RAGINSKY: Page 65, last paragraph of the page.

FUNK: Yes.

MR. COUNSELLOR RAGINSKY: You have found it, yes?

FUNK: The structure of the Reich Ministry of Economics?

MR. COUNSELLOR RAGINSKY: It gives the structure of the Ministry of

Economics as on 1 July 1941. Your permanent deputy was a certain Dr.

Landfried. Is that the same Landfried whose testimony was presented by

the Defense Counsel?

FUNK: Yes.

MR. COUNSELLOR RAGINSKY: I must ask you to follow the text:

“Landfried had under him a special department which was in charge of

fundamental questions of supply of raw materials for the military

economy.”

Defendant Funk, I am asking you...

FUNK: Just a moment. Where is that?

MR. COUNSELLOR RAGINSKY: It is in Section 2, Part II. Have you found it?

FUNK: No, there is nothing here about war economy. I do not see anything

about war economy. Auslands-Organisation...

MR. COUNSELLOR RAGINSKY: Part II, Subparagraph 2.

FUNK: It says nothing about war economy here.

MR. COUNSELLOR RAGINSKY: I shall read the entire paragraph into the

record. We shall get down to the Auslands-Organisation in good time.

FUNK: This is a special section.

MR. COUNSELLOR RAGINSKY: Yes, a special section.

FUNK: Directly subordinate to the State Secretary here is Section S,

Special Section, basic questions of the supply of raw materials, basic

questions of war economy, basic questions of...

MR. COUNSELLOR RAGINSKY: It is precisely about this war economy that I

wish to speak. He was also in charge of the fundamental market policy

and of economic questions in the border territories. The ministry

consisted of five main departments. Am I right?

FUNK: Yes.

MR. COUNSELLOR RAGINSKY: The third main department was headed by

Schmeer? Am I right?

FUNK: Yes.

MR. COUNSELLOR RAGINSKY: You had a special department entitled,

“Elimination of the Jews from Economic Life.” That was in 1941? Am I

right?

FUNK: Yes; that was the time we dealt with these matters; in that

department the regulations for carrying out these orders were dealt

with. We discussed them at length yesterday.

MR. COUNSELLOR RAGINSKY: Defendant Funk, I ask you to follow the text:

“The fourth main department was headed by Ministerialdirektor Dr.

Klucki, and this department was in charge of banks, currency, credit and

insurance matters.” Is that a fact?

FUNK: Yes.

MR. COUNSELLOR RAGINSKY: I presume that you must know the structure of

your own ministry and we need not waste time in further discussions. You

must know that the fifth main department was headed by State Secretary

Von Jagwitz. This department was in charge of special economic problems

in different countries. The fifth section of this department attended to

questions of military economy connected with foreign economy. Am I

right?

FUNK: Yes.

MR. COUNSELLOR RAGINSKY: The same department dealt with special foreign

payments as well as with the blocked deposits...

FUNK: I do not understand. This is the Foreign Trade Department. They

merely dealt with the technical carrying-out of the foreign exports.

MR. COUNSELLOR RAGINSKY: Take the section dealing with foreign

currencies. Have you found the passage?

FUNK: Yes.

MR. COUNSELLOR RAGINSKY: You have found that it deals with blocked

deposits. Were you at all connected with the collaboration existing

between your ministry and the Office of Foreign Affairs of the NSDAP? Is

my question clear to you?

FUNK: Yes.

MR. COUNSELLOR RAGINSKY: And your ministry had a special section dealing

with these matters?

FUNK: Only this office. That can be explained in this manner. The Under

State Secretary, Von Jagwitz, who was the head of this main department,

was also active in the Auslands-Organisation. He had created a liaison

office for himself in the ministry to deal with economic questions which

came to the ministry—to this department, which was the Export

Department, the Foreign Department—via the Auslands-Organisation. This

concerned Von Jagwitz only, who at the same time was active in the

Auslands-Organisation and maintained a liaison office.

MR. COUNSELLOR RAGINSKY: Then we are to understand that the Foreign

Political Department had special economic functions abroad, and that it

co-operated with your ministry in this sense? Is that correct?

FUNK: No, that is not correct.

MR. COUNSELLOR RAGINSKY: Then why did this department exist?

FUNK: It was not a department, but the Under State Secretary, Von

Jagwitz, was at the same time active in the Auslands-Organisation. I do

not know in what position. He was active in the Auslands-Organisation

before he was taken into the ministry by the Reich Marshal. Then he

himself created a kind of liaison office between his department and the

Auslands-Organisation. That is, frequently economists from abroad

belonging to the Auslands-Organisation of the NSDAP came to Berlin, and

these people came to Under State Secretary Von Jagwitz and discussed

their business with him and they reported to him about their experience

and knowledge of foreign countries. I do not know any more about it.

MR. COUNSELLOR RAGINSKY: You wish to convince us that this was the

personal initiative of Von Jagwitz, and that you as minister knew

nothing at all about it?

FUNK: Certainly, I knew about it. He did it with my knowledge, with my

knowledge and approval...

MR. COUNSELLOR RAGINSKY: Please follow the text and you had better

listen to what I want to say. I read the last paragraph which states:

“To the Main Department V is attached the office of the

Auslands-Organisation with the Reich Ministry of Economics. This

office secures the co-operation between the ministry and the

Auslands-Organisation of the Nazi Party.”

This means that no mention is made of any private initiative of Von

Jagwitz, as you tried to persuade us, but this department really was a

part of your ministry. Have you found the passage?

FUNK: Yes. Herr Von Jagwitz had this liaison office and essentially it

was limited to his person. It was a liaison office for collaboration

with the Auslands-Organisation, which was a perfectly natural procedure

in many cases. I do not see why this should be unusual or criminal.

MR. COUNSELLOR RAGINSKY: We shall come back to the question at a later

stage. Mr. President, I should like to pass over to another part. Would

it be convenient to have a short recess now? I have a few more questions

to ask.

THE PRESIDENT: Very well; the Tribunal will recess.

[_A recess was taken._]

MR. COUNSELLOR RAGINSKY: You mentioned yesterday that you were the

Plenipotentiary for Economy, but not a plenipotentiary in the full sense

of the word. Schacht was the true plenipotentiary and you were merely a

secondary one. Do you remember your article entitled “Economic and

Financial Mobilization”? Do you remember what you wrote at that time?

FUNK: No.

MR. COUNSELLOR RAGINSKY: Well, we are not going to waste any time on

that question. I shall remind you of it. I submit to the Tribunal in

evidence Exhibit USSR-452 (Document Number USSR-452), an article by

Funk, published in the monthly journal of the NSDAP and of the German

Labor Front, entitled “Der Schulungsbrief,” in 1939.

[_Turning to the defendant._] You wrote at that time:

“As the Plenipotentiary for Economy appointed by the Führer, I

must see to it that during the war all the forces of the nation

should be secured also from the economic point of view.”

Have you found this passage?

FUNK: Yes, I have found it.

MR. COUNSELLOR RAGINSKY: Further on you wrote:

“The contribution of economy to the great political aims of the

Führer demands not only a strong and unified direction of all

the economic and political measures, but also above all careful

co-ordination.... Industry; food, agriculture, forestry, timber

industry, foreign trade, transport, manpower, the regulation of

wages and prices, finance, credits must be coordinated, so that

the entire economic potential should serve in the defense of the

Reich. In order to fulfill this task, the authorities of the

Reich in charge of these spheres are included in my authority in

my capacity as Plenipotentiary for Economy.”

Do you confirm that this is precisely what you wrote in 1939?

FUNK: Yes.

MR. COUNSELLOR RAGINSKY: Is that question not quite clear to you?

THE PRESIDENT: He said, “Yes.”

FUNK: I said, “Yes”; I certainly wrote that.

MR. COUNSELLOR RAGINSKY: You confirm it. You know about the issue in

June 1941 of the so-called “Green File” of Göring? It was read into the

record here. These are directives for the control of economy or, rather,

directives for the spoliation of the occupied territories of the

U.S.S.R. How did you personally participate in the planning of these

directives?

FUNK: I do not know that. I do not know any more whether or not I

participated at all.

MR. COUNSELLOR RAGINSKY: You do not remember? How is it possible that

these documents were planned without you, Reich Minister of Economics,

the President of the Reichsbank, and Plenipotentiary for Economy and the

armament industry?

FUNK: First, at that time I was no longer Plenipotentiary for Economy. I

was never plenipotentiary for the armament industry. The powers of the

Plenipotentiary for Economy, shortly after the beginning of the war,

were turned over to the Delegate for the Four Year Plan. That has been

repeatedly confirmed and emphasized and what I did personally at that

time concerning economy in the Occupied Eastern Territories can only

have been very, very little. I do not remember it because the

administration of economy in the Occupied Eastern Territories was in

charge of the Economic Staff East and the Delegate of the Four Year

Plan, and that office, of course, co-operated with the Rosenberg

Ministry for the Occupied Eastern Territories. Personally I remember

only that, as I mentioned yesterday, in the course of time the Ministry

of Economics sent individual businessmen, merchants, from Hamburg and

from Cologne, _et cetera_, to the East in order to secure private

economic activities in the Eastern Occupied Territories.

MR. COUNSELLOR RAGINSKY: Yes, we have already heard what “activities”

you dealt with. Your name for spoliation is “private economic

activities.” Do you remember the Prague Conference of December 1941—the

meeting of the economic organization—or must I remind you of it?

FUNK: No.

MR. COUNSELLOR RAGINSKY: Not necessary?

FUNK: During the interrogations my attention was called by General

Alexandrov to this speech, and I told him at that time already that

there was a wrong newspaper report about me which I had rectified later

or after a short time.

MR. COUNSELLOR RAGINSKY: Just a minute, Defendant Funk. You are slightly

anticipating events. You do not yet know what I am going to ask you.

First listen to me and then reply. You have informed the Tribunal that

you never attended any meeting of Hitler’s at which the political and

economic aims of the attack on the Soviet Union were discussed, that you

did not know of any purpose and of any declared plans of Hitler for the

territorial dismemberment of the Soviet Union, and yet you yourself

declared in your statement that “the East will be the future colony of

Germany,” Germany’s colonial territory. Did you say that the East would

be the future colonial territory of Germany?

FUNK: No; I denied that in my interrogation. I immediately said, after

this was presented to me, that I was speaking of the old German colonial

territories. General Alexandrov can confirm that. He questioned me at

that time.

MR. COUNSELLOR RAGINSKY: I have no intention of calling General

Alexandrov as a witness. I am only asking you if you did say so; was it

written as stated?

FUNK: No.

MR. COUNSELLOR RAGINSKY: You stated that you did not have to be

reminded, but that is precisely what was mentioned in your speech, and I

am going to quote verbatim from this speech:

“The vast territories of the eastern European region, containing

raw materials which have not yet been opened up to Europe, will

become the promising colonial territory of Europe.”

And exactly what Europe were you discussing in December 1941 and what

former German territories did you wish to mention to the Tribunal? I am

asking you.

FUNK: I have not said that. I said that I did not speak about colonial

territories, but of the old colonization areas of Germany.

MR. COUNSELLOR RAGINSKY: Yes, but we are not speaking here of old

territories; we are speaking here of new territories which you wished to

conquer.

FUNK: The area had been conquered already. We did not have to conquer

that. That had been conquered by German troops.

MR. COUNSELLOR RAGINSKY: No. It was not known that they were conquered,

since you were already retreating from them.

You said that you were the President of the Continental Oil Company.

This company was organized for the exploitation of the oil fields of the

Occupied Eastern Territories, especially in the districts of Grozny and

Baku. Please answer me “yes” or “no.”

FUNK: Not only of the Occupied Territories—this company was concerned

with oil industries all over Europe. It had its beginnings in the

Romanian oil interests and whenever German troops occupied territories

where there were oil deposits, that company, which was a part of the

Four Year Plan, was given the task by the various economic offices,

later by the armament industry, of producing oil in these territories

and of restoring the destroyed oil-producing districts. The company had

a tremendous reconstruction program. I personally was the president of

the supervisory board and I mainly had to do the financing of that

company only.

MR. COUNSELLOR RAGINSKY: That I have already heard. But you have not

answered my question.

I asked you if this company had as object the exploitation of the Grozny

and Baku oil wells. Did the oil wells of the Caucasus form the basic

capital of the Continental Oil Company?

FUNK: No.

MR. COUNSELLOR RAGINSKY: No? I am satisfied with your reply.

FUNK: That is not right. We had not conquered the Caucasus and therefore

the Continental Oil Company could not be active in the Caucasus.

MR. COUNSELLOR RAGINSKY: All right. But Rosenberg at that time had

already made a report on the conquest and exploitation of the Caucasus.

Do you remember that here, before the Tribunal, a transcript of the

minutes of a meeting held at Göring’s office on 6 August 1942 with the

Reich Commissioners of the Occupied Territories was read into the

record? Do you remember that meeting?

FUNK: Yes.

MR. COUNSELLOR RAGINSKY: Did you participate in this meeting?

FUNK: That I do not know. Did they speak about the oil territories of

the Caucasus in that meeting? That I do not know.

MR. COUNSELLOR RAGINSKY: No, I do not wish to say anything as yet. I

shall ask you a question and you will answer. I ask you: Did you

participate in that meeting?

FUNK: I cannot remember. It may very well be.

MR. COUNSELLOR RAGINSKY: You do not remember?

FUNK: No.

MR. COUNSELLOR RAGINSKY: In that case you will be shown a document. It

has already been submitted to the Tribunal, and was here read into the

record. It is Exhibit Number USSR-170; it has already been presented. As

stated at that meeting, the most effective measures for the economic

spoliation of the Occupied Territories of the U.S.S.R., Poland,

Czechoslovakia, Yugoslavia, and other countries were discussed. At this

meeting Defendant Göring addressed himself to you. Do you remember

whether you were present at that meeting or not?

FUNK: Yes, indeed. I remember that. But what Göring told me then refers

to the fact that, a long time after the Russian territories had been

occupied, we sent businessmen there to bring into those territories any

goods that might interest the population. For instance it says here:

“Businessmen must be sent there.... We must send them to Venice to buy

up these things in order to re-sell them in the occupied Russian

territories.” That is what Göring told me on that occasion. At least,

that is what can be read here.

MR. COUNSELLOR RAGINSKY: I did not ask you about that, Defendant Funk.

Were you present at that meeting or not? Could you answer that question?

FUNK: Of course. Since Göring talked to me, I must have been there. It

was on 7 August 1942.

MR. COUNSELLOR RAGINSKY: Defendant Funk, you have replied here to

certain questions asked by Mr. Dodd regarding the increase of the gold

reserve of the Reichsbank; I should like to ask you the following

question: You have stated that the gold reserves of the Reichsbank were

increased only by the gold reserves of the Belgian Bank; but did you not

know that 23,000 kilograms of gold were stolen from the National Bank of

Czechoslovakia and transferred to the Reichsbank?

FUNK: I did not know that it had been stolen.

MR. COUNSELLOR RAGINSKY: Then what do you know?

FUNK: I stated explicitly here yesterday that the gold deposits had been

increased mostly by the taking over of the gold of the Czech National

Bank and the Belgian Bank. I spoke especially of the Czech National Bank

yesterday.

MR. COUNSELLOR RAGINSKY: Yes, but I am not asking you about the Belgian

Bank, but about the Bank of Czechoslovakia.

FUNK: Yes, I mentioned it yesterday. I said so yesterday...

THE PRESIDENT: He said that just now. He said that he had spoken about

the Czechoslovakian gold deposits.

MR. COUNSELLOR RAGINSKY: Mr. President, he did not mention

Czechoslovakia yesterday and I am asking him this question today. But if

he replies to this question in the affirmative, I shall not interrogate

him any further on the matter, since he will have confirmed it.

[_Turning to the defendant._] I now pass on to the next question, to the

question of Yugoslavia. On 14 April 1941, that is, prior to the complete

occupation of Yugoslavia, the Commander-in-Chief of the German Army

issued a directive for the occupied Yugoslav territories. This is

Exhibit USSR-140; it has already been submitted to the Tribunal.

Subparagraph 9 of this directive determines the compulsory rate of

Yugoslav exchange—20 Yugoslav dinars to the German mark. And the same

compulsory rate of exchange, which had been applied to the Yugoslav

dinar, was also applied to the Reich credit notes issued by the Reich

Foreign Currency Institute.

These currency operations permitted the German invaders to export from

Yugoslavia at a very cheap rate various merchandise as well as other

valuables. Similar operations were carried out in all the Occupied

Eastern Territories, and I ask you: Do you admit that such operations

were one of the means for the economic spoliation of the Occupied

Eastern Territories?

FUNK: No.

MR. COUNSELLOR RAGINSKY: Very well.

FUNK: That depends on the relation of the exchange rate. In some cases,

in particular in the case of France, I protested against the

underevaluation...

MR. COUNSELLOR RAGINSKY: Excuse me just one minute, Defendant Funk. You

have already spoken about France and I do not want to take up the time

of the Tribunal unnecessarily. I think you ought to answer my question.

FUNK: At the moment I do not know what the exchange rate between the

dinar and the mark was at that time. In general, insofar as I had

anything to do with it—I did not make the directive; that came from the

Minister of Finance and from the Armed Forces—insofar as I had anything

to do with it I always urged that the rate should not differ too greatly

from the rate which existed and which was based on the purchasing power.

At the moment I cannot say what the exchange rate for dinars was at that

time. Of course, Reich credit notes had to be introduced with the troops

because otherwise we would have had to issue special requisition

vouchers, and that would have been much worse than introducing an

official means of payment, as is now being done here in Germany by the

Allies, because working with requisition vouchers is much more

disadvantageous and harmful for the population and the entire country

than working with a recognized means of payment. We invented the Reich

credit notes ourselves.

MR. COUNSELLOR RAGINSKY: In other words, you wish to state that you had

nothing to do with it and that the entire matter rested with the

Ministry of Finance. Then tell me please, are you aware of the testimony

given by your assistant, Landfried, whose affidavit was submitted by

your defense counsel? You will remember that Landfried stated and

affirmed something totally different. He said that in the determination

of exchange rates in the occupied territories yours was the final and

determining voice. Do you not agree with this statement?

FUNK: When these rates were determined, I, as President of the

Reichsbank, was of course consulted and, as can be confirmed by every

document, I always advocated that the new rates should be as close as

possible to the old rates established on the basis of the purchasing

power, that is to say, no underevaluation.

MR. COUNSELLOR RAGINSKY: Consequently, the compulsory rate of exchange

in the occupied countries was introduced with your knowledge and

according to your instructions?

FUNK: Not on the basis of my directives. I was only asked for advice.

MR. COUNSELLOR RAGINSKY: Your advice?

FUNK: I had to give my approval. That is, the Reichsbank Directorate

formally gave the approval, but...

MR. COUNSELLOR RAGINSKY: I am satisfied with your reply. I now go on to

the next question. On 29 May 1941 the Commander-in-Chief in Serbia

issued an order regarding the Serbian National Bank, which order has

already been submitted as Exhibit USSR-135. This order liquidated the

National Bank of Yugoslavia and divided the entire property of the bank

between Germany and her satellites. Instead of the National Bank of

Yugoslavia a fictitious so-called Serbian Bank was created, whose

directors were appointed by the German Plenipotentiary for National

Economy in Serbia. Tell me, do you know who was the Plenipotentiary for

National Economy in Serbia?

FUNK: It was probably the Consul General Franz Neuhausen, the

representative of the Four Year Plan.

MR. COUNSELLOR RAGINSKY: Yes. It was Franz Neuhausen. Was he a

collaborator in the Ministry of Economics?

FUNK: No.

MR. COUNSELLOR RAGINSKY: He never worked in the Ministry of Economics?

FUNK: No.

MR. COUNSELLOR RAGINSKY: He never worked there?

FUNK: Neuhausen? No, he never worked in the Ministry of Economics.

MR. COUNSELLOR RAGINSKY: Was he a collaborator of Göring’s?

FUNK: Yes, that is correct.

MR. COUNSELLOR RAGINSKY: Well, he was a collaborator of Göring’s. Do you

admit that such specific currency operations, as a result of which the

Yugoslavian Government and its citizens were robbed of several million

dinars, could not have been carried out without your participation and

without the co-operation of the departments within your jurisdiction?

FUNK: I do not know in detail the directives according to which the

liquidation was carried out and by which the new Serbian National Bank

was founded, but it goes without saying that the Reichsbank participated

in such a transaction.

MR. COUNSELLOR RAGINSKY: I want to ask you two more questions. Together

with the unconcealed spoliation, consisting in the confiscations and

requisitions which the German invaders carried out in the Occupied

Territories of Eastern Europe, they also exploited these countries to

the limit of their economic resources by applying various exchange and

economic measures, such as depreciation of currency, seizure of the

banks, artificial decrease of prices and wages, thus continuing the

economic spoliation of the occupied territories. Do you admit that this

was precisely the policy of Germany in the Occupied Territories of

Eastern Europe?

FUNK: No.

MR. COUNSELLOR RAGINSKY: You do not admit this?

FUNK: In no way whatsoever.

MR. COUNSELLOR RAGINSKY: I now submit to the Tribunal Document USSR-453.

This is a new document, consisting of notes on a conference held by the

Reich Commissioner for the determination of prices on 22 April 1943.

Price experts from all the occupied territories attended this

conference. I shall now read into the record some excerpts from this

document. It says on Page 2:

“The 5½ million foreign workers are composed of: 1½ million

prisoners of war, 4 million civilian workers.”

The document further says:

“1,200,000 from the East, 1,000,000 from the former Polish

territories... 200,000 citizens of the Protectorate... 65,000

Croatians, 50,000 remainder of Yugoslavia (Serbia)”—and so on.

Further this document also says in connection with the equalization of

prices:

“Price equalization should be operated to the debit of the

producer countries, that is, through the Central Clearing

Office, which for the most part is to the advantage of the

occupied countries.”

On Page 14 it is stated:

“These price deliberations were of no importance for the

occupied territories, since the main interest did not lie in the

welfare of the population but in the utilization of all the

economic forces of the country.”

On Page 16 we find the following, excerpt:

“Concerning the Occupied Eastern Territories, Ministerial

Counselor Roemer has stated that prices there are far below

German prices, and so far the Reich has already reaped large

import profits.”

Mention is made, on Page 19, of Germany’s clearing debt, which amounted

to 9,300,000 marks. At the same time the clearing balance for

Czechoslovakia showed a deficit of 2,000,000; for the Ukraine of

82,500,000; for Serbia of 219,000,000; for Croatia of 85,000,000; and

for Slovakia of 301,000,000 marks.

And finally, on Page 22 of the document, it says:

“The prices in the Occupied Eastern Territories are kept at the

lowest possible level. We have already realized import profits

which are being used to cover Reich debts. Wages are generally

only one-fifth of what they are in Germany.”

You must admit that the planned robbery perpetrated by the German

invaders on so gigantic a scale could never have been carried out

without your active participation as Minister of Economics, President of

the Reichsbank, and Plenipotentiary for Economy?

FUNK: I must again stress that during the war I was no longer

Plenipotentiary for Economy. But may I state my position to this

document? First, there is the figure of the number of the workers which

were brought from the occupied territories and other foreign countries

into Germany. I have emphasized, myself, and it has been confirmed by

other statements, that I was basically against bringing in foreign

manpower from occupied territories to such an extent as to impair the

economic order in those territories. I am not even speaking about

recruitment of forced labor. I also opposed that. When an expert whom I

do not know says that the deliberations about price policy were of no

importance for the occupied territories, because the main interest did

not lie with the welfare of the population but in the exploitation of

economic forces, I must contradict that point of view. In any case, it

is not my point of view. I do not know who the man was who said that,

but it is a matter of course that a territory cannot produce well unless

the economy is kept on a good footing and prices are fixed at a level

which enables the people to exist and to maintain social order. So I

have to oppose this point of view also. As far as the clearing debt is

concerned, I explained yesterday in detail that the clearing system was

in common usage for Germany, and that I have always recognized and

confirmed that these clearing debts were genuine debts which, after the

war, had to be repaid in the currency in which they were incurred, based

on the purchasing power at that time. I do not see any spoliation here.

Moreover, I must again stress the fact that I was not competent for the

economy in the occupied territories, that I had no power to give a

directive there and that I participated only insofar as I detailed

officials to individual offices, just as all other departments did, and

that, of course, there was co-operation between these offices and the

department at home. But I cannot assume responsibility for the economy

in the occupied territories. The Reich Marshal definitely admitted that

as far as economic questions are concerned, it was his responsibility.

MR. COUNSELLOR RAGINSKY: I understand. You collaborated, and now you do

not wish to bear the responsibility. You say that the expert has made

the statement. But do you remember your testimony which you gave on 22

October 1945?

FUNK: I do not know what interrogation...

MR. COUNSELLOR RAGINSKY: When you were asked about the compulsory

mobilization of foreign workers you were also asked if you knew about it

and if you had ever protested against it. Is that correct? You replied,

“No, why should I be the one to protest against it?”

FUNK: That is not correct. I protested against the compulsory

recruitment of workers and against so many workers having been taken out

of occupied territory that the local economy could no longer produce.

That is not correct.

MR. COUNSELLOR RAGINSKY: I have one last question to ask you. Do you

remember an article published in the newspaper Das Reich, dated 18

August 1940, in connection with your 50th birthday? This article is

entitled, “Walter Funk, Pioneer of National Socialist Economic Thought.”

I shall read into the record a few excerpts from this article:

“From 1931 on, Walter Funk, as personal economic adviser and

Plenipotentiary of the Führer for Economics, and therefore the

untiring middleman between the Party and German economy, was the

man who paved the way to the new spiritual outlook of the German

industrialists.

“If in the outbreak of 1933 the differences which had existed

for more than a decade in the public life of Germany between

politics and economy, and especially between politics and the

industrialists, disappeared overnight, if from the outset, the

guiding rule of all labor has been an ever-increasing

contribution towards a common end, this is due to the pioneering

work of Funk, who since 1939 has directed his speeches and his

writings to that end.”

And in the last paragraph of this article:

“Walter Funk remained true to himself because he was, and is,

and will remain a National Socialist, a fighter who dedicates

all his work to the idealistic aims of the Führer.”

The whole world knows what the ideals of the Führer were.

Do you admit that this article gives a correct appreciation of your

personality and your activities?

FUNK: Generally, yes.

MR. COUNSELLOR RAGINSKY: I have no more questions to ask.

[_Dr. Dix approached the lectern._]

THE PRESIDENT: What is it you wish to say, Dr. Dix?

DR. DIX: I have only one question for the witness, which was brought up

by the cross-examination of Mr. Dodd. I could not put this question any

sooner, since I am asking it only because of what Mr. Dodd said.

THE PRESIDENT: Yes, go on.

DR. DIX: Witness, Mr. Dodd has put to you a record of your

interrogation, according to which Schacht, after leaving the Reichsbank,

still had a room there. You have heard the testimony of Schacht here. He

testified clearly that he did not have a room at the Reichsbank but that

the Reich Government put a room in his apartment at his disposal and

contributed to the rent, and that the Reich Government paid a secretary

whom he took with him from the Reichsbank, but who was now paid by the

Reich Government and not by the Reichsbank. That was the testimony of

Schacht. By your answer given to Mr. Dodd it was not quite clear whether

you have any doubt about the correctness of that statement by Schacht. I

ask for your opinion.

FUNK: I do not know anything about the apartment of Dr. Schacht. I was

told at the time that he still came frequently to the Reichsbank and

that a room was reserved for him. If that information was not correct,

then it is not my fault. I do not doubt that what Dr. Schacht said is

correct. He must know the arrangements concerning his apartment better

than I do.

THE PRESIDENT: Dr. Sauter, do you wish to re-examine?

DR. SAUTER: Mr. President, we have found this final questioning of the

Defendant Dr. Funk harder to follow than the other cases, because the

translation caused serious difficulties. I have to admit, frankly, that

I have been able to understand only part of what has been said here. The

defendant may probably have had the same difficulty and therefore I

should like to reserve the right Mr. President, after I receive the

stenographic record, to make one or two corrections, if the transcript

should show this to be necessary. It has also been made more difficult

for us, Mr. President, because in the course of cross-examination a

large number of extensive documents was submitted to the Defendant Dr.

Funk. We are gradually becoming used to those surprises. Moreover, the

Defendant Funk was supposed to give answers to questions concerning

documents which he had not issued which had nothing to do with his

activities, which he...

THE PRESIDENT: Dr. Sauter, the Tribunal saw no sign at all of the

Defendant Funk not being able to understand thoroughly every question

put to him. And I think that therefore there is no reason for any

protest on your behalf and you should go on to put any question you wish

to put in re-examination—let us say, questions which arise out of the

cross-examination.

DR. SAUTER: Mr. President, on our earphones, at least on this side, we

could not understand quite a number of questions. Whether it applied to

these particular earphones or to the entire apparatus I do not know.

THE PRESIDENT: Well, if the Defendant Funk did not understand any

questions put to him, he could have said so. He did not say so. He

answered all the questions from a logical point of view, perfectly

accurately. You can ask him if you like, if he did not understand any of

the questions put to him.

DR. SAUTER: Now, Herr Funk, the Prosecution among other things has put

to you that you participated in the exploitation, the spoliation of

France. In this connection is it correct that the merchandise, the

consumer goods which came from France, were in many cases manufactured

from raw materials which had come from Germany?

FUNK: Certainly. We continuously delivered coal, coke, iron, and other

raw materials in France, so that they could produce goods—we delivered

especially those raw materials which the French did not have in the

country themselves. There was a very active exchange of production and a

very close productive co-operation between the German and French

economy. Even the same organizational methods were used.

DR. SAUTER: Dr. Funk, excerpts from an article which appeared on the

occasion of your birthday have been read before. Do you know the author

of that article?

FUNK: Yes, from the earlier years.

DR. SAUTER: Did he receive any factual material from you for that

article?

FUNK: No.

DR. SAUTER: Did he not ask for it?

FUNK: No, I did not know anything about that article beforehand. I did

not order a birthday article for myself.

DR. SAUTER: Precisely. So you did not know anything about that article

and therefore, if I understand you correctly, there is no guarantee that

what is said in this article is completely true.

FUNK: No. But I find that the tendency of the article is generally very

good. The tendency...

DR. SAUTER: Witness, the American prosecutor confronted you yesterday

with the matter of your negotiations with Rosenberg in the spring of

1941 and the fact that at that time, a few months before the march into

Russia, you had these negotiations with Rosenberg. He apparently wanted

to conclude that you had admitted, or wanted to admit, that you had

known about the intention of Hitler to wage an aggressive war against

Russia. You did not have a chance to say anything on this yesterday.

Therefore I should like to give you another opportunity now to state

very clearly what your belief was at that time concerning the intentions

of Hitler in the spring of 1941, when you negotiated with Rosenberg, and

what you knew about any possible causes for war before that time.

FUNK: As to the question of the American prosecutor, I did not

understand it to mean that I knew anything about an aggressive war

against Russia. The prosecutor spoke explicitly about preparations for

war with Russia. I myself had already made it quite clear that I was

completely surprised when the task was assigned to Rosenberg, and I was

informed by Dr. Lammers as well as by Herr Rosenberg, that the reason

for the assignment was that the Führer was expecting a war against

Russia, because Russia was deploying large numbers of troops along the

entire eastern border, because Russia had entered Bessarabia and

Bukovina and because his negotiations with Molotov brought proof that

Russia maintained an aggressive policy in the Balkans and the Baltic

area, whereby Germany felt herself threatened. Therefore preparations

had to be made on the part of Germany for a possible conflict with

Russia. Also, concerning the meeting which the American prosecutor has

mentioned, I said explicitly that the measures concerning currency which

were discussed there were approved by me, because we created thereby

stable currency conditions in the Occupied Eastern Territory. I was

therefore opposed to the idea that the German Reichsmark, which the

Russian population would not have accepted because they could not even

read it, should be introduced there.

DR. SAUTER: Witness, the Soviet Russian prosecutor has pointed out again

and again that you were not only Reichsbank President and Reichsminister

of Economics, but also Plenipotentiary for Economy. You have corrected

that already and pointed out that from the very beginning when you were

appointed, your authority as Plenipotentiary for Economy was practically

taken over by Göring, and that, I believe, in December of 1939, your

authority as Plenipotentiary for Economy was also formally turned over

to Göring.

MR. DODD: I wish to enter an objection not only to the form this

examination is taking, but as to its substance. Counsel is in effect

testifying himself, and he is testifying about matters that the witness

testified to on direct examination, and it seems clear to us that this

cannot be helpful at all to the Tribunal as a matter of re-direct

examination.

THE PRESIDENT: Dr. Sauter, is it really proper for you to get the

witness to go over again the evidence which he has already given? The

only object of re-examination is to elucidate any questions which have

not been properly answered in cross-examination. The witness has already

dealt with the topics with which you are now dealing, in the same sense

which you are now putting into it.

DR. SAUTER: I have repeated the statements only because I want to put a

question to the witness now concerning a document which was submitted

only yesterday, which had not been submitted until then, and to which I

could therefore not take any position; and because the Soviet Russian

prosecutor has again made the assertion here that the defendant also

during the war was Plenipotentiary for Economy, although that is not

correct. Mr. President...

THE PRESIDENT: I have heard myself the witness say over and over again

that he was not the Plenipotentiary General for Economy during the war.

He has repeatedly said that.

DR. SAUTER: But it has been repeated from this side. Mr. President,

yesterday a document was submitted which bears the Document Number

EC-488.

THE PRESIDENT: What is the document you want to deal with?

DR. SAUTER: Number EC-488. It was presented yesterday, and is a letter

dated 28 January 1939. On the front page it is marked in large letters

“Secret.” Here in the original is the heading, which is in capital

letters, and it reads, “The Plenipotentiary for War Economy.” So much

for the heading of the letter paper. Then the word “War” is crossed out,

so that you can read only, “The Plenipotentiary for Economy.”

Therefore, before 28 January 1939 the title of Plenipotentiary for War

Economy must have been changed to a new title, “Plenipotentiary for

Economy.” I now ask that the defendant...

THE PRESIDENT: Yes, I see. The copy that we have before us has not got

the word “War” in it at all.

DR. SAUTER: It can be seen on the photostat.

THE PRESIDENT: I see it. But what is the question you want to put?

DR. SAUTER: At the time when this letter was written, the

Plenipotentiary was the Defendant Funk. I should like to ask to be

permitted to put the question to him, how it can be explained that the

title of his office—that is, Plenipotentiary for War Economy—was

changed. The question would be how it could be explained that the title

of his office, “Plenipotentiary for War Economy” had been changed to the

new title, “Plenipotentiary for Economy.”

FUNK: The reason is...

DR. SAUTER: One moment, Dr. Funk, please.

THE PRESIDENT: I did not ask you to stop putting your question. You can

put your question. Go on. What is the question?

DR. SAUTER: Go on, Dr. Funk.

FUNK: The reason was that according to the old Reich Defense Law,

Schacht had been appointed Plenipotentiary for War Economy, and on the

basis of this second Reich Defense Law, which appointed me, I was

appointed Plenipotentiary for Economy, because at that time it was quite

clear that the special tasks concerning war economy—that is to say,

armament industry, war economy proper—could no longer remain with the

Plenipotentiary for Economy, but that he had essentially to co-ordinate

the civilian economic departments.

DR. SAUTER: In connection with that, Mr. President, may I call your

attention to another document which was submitted yesterday. That is

Number 3562-PS. Here the heading already has the correct new title,

“Plenipotentiary for Economy.” That is no more “Plenipotentiary for War

Economy,” and that is also a new document which was submitted only

yesterday. Mr. President...

MR. DODD: Just to keep the record straight, Mr. President, that Document

3562-PS is in evidence, and it was submitted by Lieutenant Meltzer at

the time he presented the case against the individual Defendant Funk.

THE PRESIDENT: Mr. Dodd, am I not right in thinking that the Defendant

Funk stated from the outset in his examination in chief that he was

appointed Plenipotentiary General for Economy?

MR. DODD: Yes, indeed, Sir. That is as I thoroughly understand it.

THE PRESIDENT: And you have not challenged that?

MR. DODD: We have not challenged the fact that he said so. But we do

challenge the fact that he, in fact, was only for economy. We do

maintain that he, in fact, had much to do with the war effort as the

Plenipotentiary.

THE PRESIDENT: Yes. But he was not to be named that?

MR. DODD: No. And that Document EC-488 was not offered, anyway, for that

purpose, but rather to show that the defendant was engaged in talking

about what prisoners of war would do after an attack.

DR. SAUTER: Yesterday a document was produced about the interrogation of

a certain Hans Posse. It is Document 3894-PS. The witness Hans Posse was

formerly State Secretary in the Ministry of Economics and as such Deputy

Plenipotentiary for Economy. That record has been submitted by the

Prosecution in order to show that allegedly there was a struggle for

power, as it says here, between Funk and Göring.

However, I should like to quote to the witness a few other points from

that record so that several other points can also be used as evidence:

Witness, State Secretary Hans Posse says, for instance—and I should

like to ask whether this is still your opinion today—that is Document

3894-PS, Page 2 of the German translation, at the bottom of the page—he

was asked, “How often did you report to Funk in connection with your

duties as Deputy to the Plenipotentiary?”

The witness answered then, “The Plenipotentiary for Economy never really

went into action.”

FUNK: I must repeat what I said again and again, and what has been

confirmed by everybody who has been heard on that question. That was a

post which was merely on paper.

DR. SAUTER: Then the witness was asked to what final end you, Dr. Funk,

had worked.

It says, “Dr. Posse, is it correct that the office of Plenipotentiary

for Economy was established to the final end of uniting all economic

functions with a view to the preparation for war?”

Then the witness answered, “The purpose was what I have just said—to

co-ordinate the various conflicting economic interests. But there was no

talk about the preparation for war.”

And on the same page, on Page 4, at the bottom, the witness says, I

quote:

“It is correct that the aim was to co-ordinate all economic

questions, but the purpose was not to prepare for war. Of

course, if war preparation should become necessary, it was the

task of the Plenipotentiary for Economy to concern himself with

these questions and to act as a co-ordinator.”

FUNK: Herr Posse was an old, sick man, whom I had put in this post. He

was formerly State Secretary under Schacht, and when I took over the

ministry, I received a new State Secretary through Göring who,

unfortunately, later became insane. And then State Secretary Dr.

Landfried came to me, and Posse, who formally was still in the Ministry

of Economics as State Secretary, was without a job. Therefore I made him

an executive officer attached to the Plenipotentiary for Economy.

Here, of course, he had constant difficulties from the very beginning.

The High Command of the Armed Forces or the War Economy Staff wanted to

reduce the authority of the Plenipotentiary, as can be seen from the

letter which was presented yesterday. And the civilian economy

department did not want to follow his directives because they already

had been subordinated to and had to follow the directives of the

Delegate for the Four Year Plan. Therefore, as a matter of fact, that

unhappy Plenipotentiary for Economy held a post which to all intents and

purposes existed only on paper.

THE PRESIDENT: Would this not be a convenient time to break off now?

[_The Tribunal recessed until 1400 hours._]

_Afternoon Session_

DR. SAUTER: Mr. President, I have two more questions which I wish to put

to the Defendant Dr. Funk.

[_Turning to the defendant._] Dr. Funk, before the recess we stopped at

Document 3894-PS, the testimony of your State Secretary Posse. I should

like to read one passage on Page 7 of the German text and ask you

whether you agree with it. The witness Posse was asked by the

Prosecution whether he, as Deputy Plenipotentiary for Economy, knew

about the international relations, especially about the war situation

and so forth, and he says, on Page 7, in the middle:

“We never knew anything about the international situation and we

never heard anything about it, and if the international

situation was mentioned in our discussions we could always voice

merely our personal opinions.”

And a few lines further down:

“We”—he means apparently himself and you, Dr. Funk—“We always

hoped that there would be no war.”

Do you agree with this opinion of your former State Secretary Posse?

FUNK: Yes. I have said repeatedly that until the end I did not believe

that there would be a war, and the same is true of my colleagues, and

everyone who spoke to me at that time will corroborate this. Herr Posse

was, of course, still less informed about political and military events

than I was. Consequently, that also applies to him.

DR. SAUTER: Then I have a final question to put, Witness. You have seen

the film which the Prosecution has presented. Now, you were the

President of the Reichsbank. Consequently you are familiar, possibly

only superficially with the conditions in the vaults of the Reichsbank,

at least, I assume, in Berlin, if not in Frankfurt, where the film was

taken; and you also know how, especially during the war, these items

which had been deposited with the bank in trunks or packages and the

like were safeguarded. Possibly, Dr. Funk, on the basis of your own

knowledge of the conditions you can make a statement regarding this

short film which we have seen.

FUNK: I was completely confused by this film and most deeply shocked.

Photography and especially films are always very dangerous documents

because they show many things in a light different from what they really

are. I personally have the impression, and I believe the Prosecution

will probably corroborate this, that all these deposits of valuables and

this entire collection of valuable items came from the potassium mines

where, at my instigation, all gold, foreign currency and other valuables

of the Reichsbank had been stored away when, because of a terrific

bombing attack on Berlin, we were no longer able to work in the

Reichsbank. The Reichsbank building alone in this one raid on 3 February

1945 was hit by 21 high explosive bombs; and it was only by a miracle

that I was able to reach the surface from this deep cellar together with

5,000 other people. Gold, foreign currency, and all other deposits of

valuables were then taken to a potassium mine in Thuringia and from

there apparently to Frankfurt, I assume. So this concerns, to a large

extent, normal deposits by customers who had placed their valuables,

their property, in these safe deposits which could not be got at by the

Reichsbank. Consequently I cannot tell from this film which of these

items were deliveries by the SS and which were genuine deposits. The

Prosecutor certainly is correct when he says that no one would deposit

gold teeth in a bank. It is, however, quite possible that certain

functionaries of concentration camps made genuine deposits in the

Reichsbank which contained such articles, to safeguard them for future

use. I think that is possible. However, in conclusion I must say once

more that I had no knowledge whatsoever of these things and of the fact

that jewelry, diamonds, pearls, and other objects were delivered from

concentration camps to the Reichsbank to such an extent. I knew nothing

about it; it was unknown to me, and I personally am of the opinion that

the Reichsbank was not authorized to do this kind of business. It is

certainly clear from one document, which contains an account for the

Minister of Finance, that most likely everything from the concentration

camps was first brought to the Reichsbank and then the unfortunate

officials of the Reichsbank had to sort it, send it on to the Minister

of Finance—or rather to the pawnbroker who was under the Minister of

Finance—and prepare a statement of account. Therefore, I must request

that someone be examined on these matters—first of all Herr Puhl

himself, and perhaps someone else who was concerned with these

things—in order to explain what actually took place and above all, to

show that I personally had no knowledge whatsoever of these matters

except for the few facts which I myself have described to the Court.

DR. SAUTER: Mr. President, I have finished my interrogation of the

Defendant Funk, and I should now like to ask permission to examine the

only witness whom I can call at this time, the witness Dr. Hayler.

THE PRESIDENT: Very well.

MR. DODD: [_Interposing._] Mr. President, may I raise one matter before

the witness is excused? This Document 3894-PS, that we have quoted from

and that the defendant has quoted from, contains a number of other

quotations and I think it would be well if we submitted the whole

document in the four languages; and I shall be prepared to do that so

the Tribunal will have the benefit of the whole text. So far we have

both been quoting from it, but I think it would be most helpful to the

Court if it had the whole text.

And may we ask, Mr. President, shall we make arrangements or should I do

anything about getting the witness Puhl here?

THE PRESIDENT: Dr. Sauter, have you any request to make with reference

to the witness Puhl, who made an affidavit?

DR. SAUTER: Regarding the witness Emil Puhl I beg to request, Mr.

President, that he be brought here for cross-examination. I was going to

make that request in any case.

THE PRESIDENT: Yes, certainly, Dr. Sauter, the witness Puhl should be

brought here. He will be brought here as soon as possible.

DR. SAUTER: Thank you.

THE PRESIDENT: Now the defendant can return to the dock.

[_The witness Dr. Hayler took the stand._]

THE PRESIDENT: Will you state your full name?

HAYLER (Witness): Franz Hayler.

THE PRESIDENT: Will you repeat this oath after me: I swear by God—the

Almighty and Omniscient—that I will speak the pure truth—and will

withhold and add nothing.

[_The witness repeated the oath._]

THE PRESIDENT: You may sit down.

DR. SAUTER: Dr. Hayler, how old are you?

HAYLER: 46 years.

DR. SAUTER: Are you a professional civil servant, or how did you get

into the Ministry of Economics under Dr. Funk?

HAYLER: I was an independent business man and merchant and as such first

became the head of the “Economic Group Retail Trade” within the

organization of industrial economy. In this capacity I had very close

contact with the Ministry of Economics. After Minister Funk had been

appointed Minister for Economics I reported to him regarding the scope

of my work, and on that occasion I made his acquaintance. When I was

then put in charge of the “Reich Group Trade,” the working relations

between the organization directed by me and the Ministry, especially

between the then State Secretary Landfried and the Minister himself,

became very friendly.

After the separation of the ministries in the autumn of 1943, the main

task of the Ministry of Economics was to provide for the German people,

that is, the civilian population. As head of the trade organization I

was the person responsible for the sale of merchandise, that is, for the

procurement of supplies, and during a conference with Minister Funk

regarding the co-operation between trade and the Ministry, Herr

Landfried, who was then State Secretary, made the suggestion that

Minister Funk call me into his Ministry and make me his deputy. Herr

Landfried believed that under the existing conditions he himself was not

strong enough to carry out this difficult task since the Ministry had

been deprived of its influence on production. Then, when Minister Funk

told him in reply to his suggestion that he, Landfried, was the deputy

of the Minister, Landfried replied that he could not continue to carry

out these tasks and that he asked to be permitted to retire and proposed

that I be his successor. About two or three weeks later I was put in

charge of the affairs of the State Secretary.

DR. SAUTER: When was this conference?

HAYLER: This conference took place in October 1943; my appointment came

on 20 November 1943.

DR. SAUTER: So that until the autumn of 1943, Dr. Hayler, you were

employed in your organizations only in an honorary capacity?

HAYLER: Yes.

DR. SAUTER: That was, I think, retail trade?

HAYLER: Yes, trade.

DR. SAUTER: And as from 1943 you became official in the Reich Ministry

of Economics in the capacity of State Secretary?

HAYLER: I became an official with this position of State Secretary on 30

January 1944.

DR. SAUTER: In this position you were one of the closest collaborators

of Dr. Funk?

HAYLER: I was his deputy.

DR. SAUTER: Dr. Hayler, during a conference that we had on the day

before yesterday, I discussed with you the question of whether the

Defendant Dr. Funk was a particularly radical man or whether, on the

contrary, he acted with moderation and consideration toward others. What

do you have to say to this question which may have certain importance in

forming an opinion on the personality of the Defendant Funk?

HAYLER: Funk is above all very human, and always has been. Radicalism is

quite foreign to his entire character and being. He is more of an

artist, a man of very fine artistic feeling and scholarly ideas. I

believe one can say that at no time was he a doctrinaire or dogmatic. On

the contrary, he was conciliatory and anxious to settle disputes. For

this reason, in Party circles in particular, he was considered too soft,

too indulgent, in fact he was accused many times of being too weak. He

tried to protect domestic economy from political encroachment and from

unnecessary severity; and because of his respect and his regard for

enterprising endeavor and out of his own responsibility to economy and

to the people, he fought against unnecessary intervention in various

enterprises even during the war. He protected industry against mergers

and closures. This finally led to his being deprived of the

responsibility for production in the decisive phase of the war.

I recall from the time of my collaboration with him, when I was still in

charge of the trade organization, that Funk on various occasions

interceded for men in the industrial world who were in political

difficulties. I believe, however, that because of these individual

cases, such as his intervention on behalf of Consul General Hollaender

or of Herr Pietsch, and because of his attempts to promote peace, he at

that time had to expect grave consequences; also because of his

intervention in the case of Richard Strauss, as is surely known, and in

similar cases. I do not think these individual cases are of such

importance as perhaps the following: After the catastrophe of 9 November

1938 the process of Aryanization was to be intensified in the Ministry

of Economics; and at that time a few political men were forced upon the

Ministry, especially Herr Schmeer. I remember distinctly that at that

time Landfried in particular, as well as Funk, slowed down considerably

this radicalization of the Ministry; and Funk and the Ministry were

blamed for doing so.

After 8 and 9 November I once had a conference regarding the events of

that date with Himmler, in which I voiced my complaints. Himmler on that

occasion finally reproached both Funk and myself by saying, among other

things:

“Finally, you people on the economic side and connected with the

economic management are also to blame that things have gone too

far. People like Herr Schacht cannot be expected to do anything

except go slow all the time and oppose the will of the Party;

but if you and Funk and all you people on the economic side had

not slowed things down so much, these excesses would not have

happened.”

DR. SAUTER: Yes, Dr. Hayler; another question. You also worked with Dr.

Funk in matters concerning the economy of the occupied territories. Dr.

Funk is accused of having played a criminal part in despoiling the

occupied territories as well as in destroying their currency and

economic systems. Could you enlighten the Court as briefly as possible

on the Defendant Funk’s attitude and activities? As briefly as possible.

HAYLER: I believe two facts must be stated first of all: First, the

influence of the Ministry of Economy on the occupied territories was

relatively limited. Secondly, during the year in which I was in the

Ministry these questions were no longer particularly important.

Generally speaking, the position was as follows: Funk was constantly

accused of thinking more of peace than of war. The opinions he

proclaimed both in his speeches and in print referred to a European

economic policy; and I assume that these talks and publications or

articles are before the Court.

DR. SAUTER: Yes, they are here.

HAYLER: Funk looked at the occupied territories from exactly the same

point of view. He raised repeated objections to the over-exploitation of

the occupied territories and expressed the view that wartime

co-operation should form the basis of later co-operation in peace. His

view was that confidence and willingness to co-operate should be

fostered in the occupied territories during the war. He expressed the

view that the black market cannot be combated by the black market and

that, since we were responsible for the occupied territories, we must

avoid anything likely to disturb the currency and economic system of

these territories.

I think I remember that he also discussed the question with the Reich

Marshal and defended his own point of view. He also repeatedly opposed

unduly heavy occupation expenses, and always favored the reduction of

our own expenditure, that is, of German expenditure in the occupied

territories. In other words, he regarded the occupied territories in

exactly the same way as other European countries; and this attitude is

best illustrated by the speech he made in Vienna, I believe, in which he

publicly acknowledged as genuine debts the clearing debts, the high

totals of which were due mainly to differences in price, that is,

inflationist tendencies, in the countries which delivered the goods.

DR. SAUTER: Dr. Hayler, the Defendant Funk is furthermore accused of

playing a criminal part in the enslavement of foreign workers. This

accusation applies particularly to the period during which you were a

co-worker of Dr. Funk. Can you tell us briefly how Funk thought and

acted in regard to this point?

HAYLER: There can be no question of Funk’s co-operation in questions

regarding the employment of foreign labor at this time, but only within

the scope of his responsibility in the Central Planning Board. But it

remains to be seen whether the Central Planning Board was at all

responsible for the employment of workers or whether the Central

Planning Board did nothing more than ascertain the manpower needs of the

various production spheres. However, regardless of what the tasks of the

Central Planning Board may have been, Funk’s position in the Central

Planning Board was the following:

Funk, as Minister of Economy, was responsible for the supplies for the

civilian population and for export. In the period following the

separation of the ministries, no additional foreign worker I believe was

employed in the production of supplies for civilians or for export. On

the contrary, Funk was constantly confronted with the fact that during

that time German and foreign workers were continually being removed from

the production of consumer goods and put into armament production.

Consequently, I cannot imagine that an accusation of this sort can be

made against Funk with reference to this period of time.

On this occasion I should like to emphasize another point which seems

important to me. Provisioning the foreign workers was a very serious

question. I believe that even Herr Sauckel will corroborate the fact

that, when this question came up, Funk was at once ready—even though

there was already a great scarcity of provisions for the German people

due to many air raids and destructions—to release large quantities of

supplies and put them at the disposal of the foreign workers.

DR. SAUTER: If I understand you correctly, he tried to see to it that

the foreign workers who had to work in Germany were supplied as well as

was possible with consumer articles: food, shoes, clothes, and so on.

HAYLER: Particularly shoes and clothing; Funk was not the competent

authority for food.

DR. SAUTER: Shoes and clothing?

HAYLER: Yes, I have specific knowledge of this. And as a result Funk had

considerable difficulty; for the Gauleiter, in view of the great

scarcity of goods, did their best to secure supplies for the inhabitants

of their own Gaue for whom they were responsible, and in so doing used

every means which came to hand. Funk constantly had to oppose the

arbitrary acts of the Gauleiter, who broke into the supply stores in

their Gaue and appropriated stocks intended for the general use.

DR. SAUTER: Dr. Hayler, do you know whether Dr. Funk—I am still

referring to the time when you worked with him—represented the

viewpoint that the foreign worker should not be brought to Germany to

work here but that rather the work itself should be taken from Germany

into the foreign countries so that the foreign worker could perform his

work in his home country and remain at home? Please answer that.

HAYLER: I know very well that Funk represented that viewpoint; and it is

in accordance with his general attitude, for the political disquiet and

dissatisfaction which accompany the displacement of such large masses of

human beings temporarily uprooted was in opposition to the policy of

appeasement and reconstruction which was definitely Funk’s goal.

DR. SAUTER: I now come to the last question which I wish to put to you,

Dr. Hayler. When the German armies retreated and when German territories

were occupied by enemy armies, difficulties arose regarding the

supplying of these territories with money. At that time Hitler is

supposed to have planned a law according to which the acceptance and

passing on of foreign occupation money was to be punished even by death.

I am not interested now, Dr. Hayler, in finding out why Hitler planned

to do this; but I am interested in finding out, if you can tell me, how

the Defendant Funk reacted to this demand by Hitler and what success he

had.

HAYLER: Two facts can be established in regard to this point, which

should be of interest to the Tribunal. I have rarely seen Funk as

depressed as at that time, after he had received information about the

so-called “scorched earth decree.” I believe he was the first minister

to issue at that time two very clear decrees, one from the Ministry of

Economics, in which he gave definite instructions that wherever German

people were an administration of economy in some sort of form must

remain; where it is necessary that people be provided for, the State

must continue to provide for these people.

The second decree was issued at the same time by the President of the

Reichsbank, in which he decreed that the money market had to be cared

for by the remaining offices of the Reichsbank in the same way that

economy was to be cared for.

Regarding your question itself, I recall very distinctly that the Führer

himself, it was said, had demanded of the Ministry of Economics the

issuing of a legal regulation according to which the acceptance of

occupation money was forbidden to every German on pain of death. Herr

Funk opposed this demand very energetically, I believe with the help of

Herr Lammers. He himself telephoned headquarters repeatedly and finally

succeeded in having the Führer’s directive withdrawn.

DR. SAUTER: Have you finished, Dr. Hayler?

HAYLER: Yes.

DR. SAUTER: Mr. President, I have no further questions to put to the

witness.

THE PRESIDENT: Do the other Defendants’ Counsel wish to ask any

questions?

[_No response._]

Does the Prosecution wish to cross-examine?

MR. DODD: When did you join the Nazi Party, Mr. Witness?

HAYLER: Did I understand you correctly—when did I become a member of

the NSDAP?

MR. DODD: That is right.

HAYLER: December 1931.

MR. DODD: Did you hold any offices in the Party at any time?

HAYLER: No; I never held office in the Party.

MR. DODD: You were the head of a trade group in 1938, the Reichsgruppe

“Handel”?

HAYLER: I was the head of the Economic Group “Retail Trade” from 1934

on, and from 1938 on, head of the Reich Group “Trade.” This organization

was a part of the organization of industrial economy and was under the

Reich Ministry of Economics.

MR. DODD: Membership in the group that you were the head of was

compulsory, wasn’t it?

HAYLER: Yes.

MR. DODD: When did you join the SS?

HAYLER: I joined the SS in 1933, in the summer.

MR. DODD: That was a kind of Party office, wasn’t it, of a sort?

HAYLER: No, it was not an office. I became connected with the SS because

of the fact that in Munich 165 businessmen were locked up and because I

knew Himmler from my student days—I had not seen him again until

then—the businessmen in Munich asked me to intercede for them in the

summer of 1933. But I had no office in the Party or in the SS.

MR. DODD: When did you become a general in the SS?

HAYLER: I never was a general in the SS. After I had been appointed

State Secretary, the Reichsführer bestowed on me the rank of a

Gruppenführer in the SS.

MR. DODD: A Gruppenführer—isn’t that the equivalent of a general in the

SS?

HAYLER: Yes and no. In the SS there was the rank of Gruppenführer and

there was the rank of Gruppenführer and general of the Police or of the

Waffen-SS; but the Gruppenführer was not a general if it was only an

honorary rank. This could easily be seen from our uniforms, because we

did not wear a general’s epaulets or a general’s uniform.

MR. DODD: You know Ohlendorf pretty well, don’t you?

HAYLER: Yes.

MR. DODD: He worked for you at one time. He was under your supervision.

Isn’t that so?

HAYLER: I worked with Ohlendorf from 1938 on.

MR. DODD: You know, he has testified before this Tribunal that he

supervised the murdering of 90,000 people; did you know that?

HAYLER: I heard about that.

MR. DODD: Did you know about it at the time that it was going on?

HAYLER: No.

MR. DODD: Did you know Pohl, the SS man—P-o-h-l?

HAYLER: May I ask you for that name again?

MR. DODD: Pohl—P-o-h-l?

HAYLER: I do not remember knowing an SS man Pohl.

MR. DODD: Do you know a man called Obergruppenführer Pohl of the SS?

HAYLER: No—Yes, I know an Obergruppenführer Pohl. Obergruppenführer

Pohl was the chief of the administrative office of the SS.

MR. DODD: Did you have conversations and meetings with him from time to

time?

HAYLER: Officially I had a few conversations with Pohl. Usually they

were very unpleasant.

MR. DODD: Well, that’s another matter. How often would you say, between

1943 and the end, the time of your surrender, that you met with Pohl to

discuss matters of mutual interest between the SS and your own Ministry

of Economics? Approximately, because I don’t expect you to give an

accurate account, but about how many times, would you say?

HAYLER: I must give a short explanation about this. Between the...

MR. DODD: Give that afterwards. Give me the figure first.

HAYLER: Yes. Perhaps three or four times, perhaps only twice. I do not

know exactly.

MR. DODD: Are you telling us three or four times a year or three or four

times during the whole period between 1943 and 1945?

HAYLER: During my time in office, yes, three or four times; it was only

one year.

MR. DODD: Did you talk to him about the Reichsbank’s or the Ministry of

Economics’ co-operating in the financing of the building of factories

near the concentration camps?

HAYLER: No.

MR. DODD: You know about that, do you?

HAYLER: No. This question was never discussed with me.

MR. DODD: What did you talk to him about?

HAYLER: A great controversy had arisen between the Ministry of Economics

and the SS because after I had taken over the State Secretariat in the

Ministry of Economics, Himmler had instructed me to turn over to the SS

a factory which belonged to the Gau Berlin. I fought against this and

did not obey Himmler’s instructions. The files about this must surely

still be in existence. I then was instructed to discuss this matter with

Pohl. In these conferences and in a personal conversation which Himmler

requested and ordered, I still fought against Himmler’s instructions,

because I was fundamentally against the SS having industrial enterprises

of its own.

MR. DODD: Did you talk to the Defendant Funk about this difficulty with

Himmler and Pohl?

HAYLER: Yes, because these difficulties resulted in Himmler’s writing me

a letter in December in which he told me that he ceased to have

confidence in me and that he had no desire to work with me any more. I

reported this to the Defendant Funk in December.

MR. DODD: Did Funk tell you that his bank was helping Himmler out in the

building of factories near the concentration camps?

HAYLER: I know nothing about that.

MR. DODD: You never heard of that before now?

HAYLER: Up until now I have never heard anything about Funk’s or the

Ministry of Economics’ co-operation in the financing of such buildings

or about anything of the sort.

MR. DODD: It is perfectly clear, I think, but I want to make certain,

that from 1943 to 1945, while you were the deputy to Funk in the

Ministry of Economics, the questions of purchasing on the black market,

and so on, in the occupied countries ceased to be of any real

importance, didn’t they? You said that; I understood you to say that a

few minutes ago yourself.

HAYLER: In 1944—and my time in office virtually did not start until

1944, since in December I had a Ministry which was totally bombed out

and we did not get started working again until January 1944—these

questions were no longer of decisive importance, since a process of

retrogression had already set in.

MR. DODD: All right. You also were, Mr. Witness, at the Vienna speech to

which you referred, which was made in 1944; and it had nothing to do

with the occupied countries but was directed only at the satellite

states. Are you aware of that or not?

HAYLER: The speech in Vienna?

MR. DODD: Yes, the speech in Vienna in 1944.

HAYLER: Yes, it is true; I have already said that. Both the speech in

Königsberg and the speech in Vienna did not deal directly with the

occupied territories, but with Europe as a whole. I...

MR. DODD: Did it deal with the occupied territories directly or

indirectly? Now, have you read that speech?

HAYLER: I heard the speech. Quite definitely it had nothing to do with

them directly.

MR. DODD: Finally, in view of your testimony concerning Funk and what he

thought about forced labor, you know, don’t you, that he took an

attitude of unconcern about the forcing of people to come to Germany? Do

you know that?

HAYLER: No.

MR. DODD: Well, you know he has said on interrogation that he didn’t

bother his head about it, although he knew that people were being forced

to go to Germany against their will. Are you aware of that?

HAYLER: No, I am not aware of that. I had with Funk...

MR. DODD: All right. If you did know it, would that make some difference

to you; and would you change your testimony some?

HAYLER: I am not aware of the fact that Funk is supposed to have had

this attitude or...

MR. DODD: Very well. Perhaps I can help you by reading to you from his

interrogation of 22 October 1945, made here in Nuremberg. Among other

things, he was asked these few questions and made a few answers:

“As a matter of fact, you were present at many meetings of the

Central Planning Board, were you not?”

Funk answered and said:

“I was present at the meetings of the Central Planning Board

only when something was required for my small sector; that is to

say, something which had to do with the export and consumer

goods industries as, for example, iron. I had to put up a fight

on each occasion to get just a few thousand tons for my consumer

goods industry.”

The next question was:

“Yes, but during those meetings you attended, you heard, did you

not, discussions concerning forced labor?”

Funk answered: “Yes.”

“Question: ‘And you knew from those meetings that the policy was

to bring in more and more foreign workers to the Reich against

their will?’”

Funk answered: “Yes, certainly.”

“Question: ‘And you never objected to that, I take it?’”

Funk answered:

“No, why should I have objected? It was somebody else’s task to

bring these foreign workers into the Reich.

“Did you believe it was legal to take people against their will

from their homes and bring them into Germany?” was the last

question that I want to quote to you. He answered: “Well, many

things happen in wartime which aren’t strictly legal. I have

never racked my brains about that.”

Now, if you know that to be his attitude from his statements made under

oath on an interrogation here, would that change your view about Funk

and would it cause you to change the testimony which you have given

before the Tribunal here today?

HAYLER: I can testify only to those things which I myself know. I cannot

remember any such statements by Funk. I do know and I remember

distinctly that we frequently spoke about the occupied territories,

about the later development in Europe which was to, and could, result

from co-operation. We also spoke about the procuring of workers and that

Funk fundamentally had a viewpoint different from the one that prevailed

and that he was not in agreement with these things. I can merely repeat

this and if you question me here as a witness, I can say only what I

know.

MR. DODD: Did you go over all of your questions and answers with Dr.

Sauter before you took the stand? You knew what you were going to be

asked when you came here, didn’t you?

HAYLER: Dr. Sauter gave me an idea what he would question me about and

what he was interested in.

MR. DODD: I have no further questions.

THE PRESIDENT: Do any other members of the Prosecution wish to

cross-examine? Dr. Sauter, do you want to re-examine?

DR. SAUTER: No.

THE PRESIDENT: The witness can retire.

[_The witness left the stand._]

DR. SAUTER: Mr. President, there are a few interrogatories missing, some

of which have already arrived and are being translated. I request that

at a later occasion, perhaps after the case against Defendant Schirach,

I be permitted to read these interrogatories. And then, Mr. President, I

should like to say something of a general nature. I have already read

extracts from various documents and requested that all of them be

admitted as evidence and I should like to repeat this request for all

these documents. With that I shall have finished my case for Funk.

Mr. President, may I make another request of you at this moment, namely,

that during the next few days the Defendant Von Schirach be excused from

being present at the sessions in Court so that he can prepare his case.

In his absence I shall look after his interests or else, when I am not

here, my colleague Dr. Nelte will. Thank you very much.

THE PRESIDENT: Who is appearing for the Defendant Schirach?

DR. SAUTER: I am; and when I cannot be present, then Dr. Nelte will. One

of us will always be in Court and look after his interests.

THE PRESIDENT: Yes, very well, Dr. Sauter. Now the Tribunal will adjourn

for 10 minutes.

[_A recess was taken._]

THE PRESIDENT: Dr. Sauter, there was a document which you didn’t refer

to. I think it was an affidavit of a witness called Kallus. Were you

offering that in evidence? It was an interrogatory of Heinz Karl Kallus.

DR. SAUTER: The Kallus interrogatory, Mr. President, has already arrived

and at the moment it is in the process of translation, I shall submit it

as soon as the translation has been received by the Prosecution.

THE PRESIDENT: Well, we have got a translation into English.

DR. SAUTER: I believe, Mr. President, that what you have is an affidavit

by Kallus, and in addition there is a Kallus interrogatory, which is in

process of translation and which I shall submit later.

THE PRESIDENT: This takes the form of an interrogatory, questions and

answers, what I have in my hand. I am only asking whether you want to

offer that.

DR. SAUTER: Yes, I offer that in evidence. I request that judicial

notice be taken of it.

THE PRESIDENT: Very well; you gave it a number then, did you? What

number will it be?

DR. SAUTER: Exhibit Number 5, if you please.

THE PRESIDENT: Very well.

DR. SAUTER: Thank you very much.

THE PRESIDENT: Now, Dr. Kranzbühler.

FLOTTENRICHTER OTTO KRANZBÜHLER (Counsel for Defendant Dönitz): Mr.

President, first I should like to ask the permission to have a

secretary, in addition to my assistant, in the courtroom, in order to

facilitate the submission of documents.

With the permission of the Tribunal, I shall first submit a number of

documents; and I shall use the document book of the Prosecution and the

document books which I have submitted. These document books consist of

four volumes. The table of contents is in Volume I and in Volume III.

In the first document of the document book of the Prosecution, Exhibit

USA-12 (Document Number 2887-PS), I should like to correct an error in

translation which may be of significance. It says there, in the German

text, under “1939,” “Konteradmiral, Befehlshaber der Unterseeboote,” and

that in the English text has been translated by “Commander-in-Chief.”

The correct translation should be “Flag Officer of Submarines.” That

point is of importance in regard to the fact that Admiral Dönitz, until

his appointment as Commander-in-Chief of the Navy in 1943, was not a

member of the group which the Prosecution terms criminal.

I should like to call the attention of the Tribunal back to Exhibit

GB-190 (Document Number D-652 (a-b)). That is a sea-chart which the

Prosecution has submitted. This chart shows the position of the German

submarines to the west of England on 3 September 1939, and the

Prosecution uses that chart as evidence for the question of aggressive

war.

The Prosecution says, rightly, that these U-boats must have left their

home bases at an earlier date. The first document, which I offer as

Dönitz-1, is to prove, first, that this belongs in the category of

measures resorted to in times of crisis such as were taken by every

nation in Europe at this time, and that they were in no way preparatory

measures for an aggressive war against England, because such a war was

not planned.

I shall read from this document—document book, Page 1. It is an excerpt

from the War Diary of the Naval Operations Staff of September 1939, and

I read the entry of 15 August:

“Prepared (for Case White) the following measures:”

THE PRESIDENT: What page?

FLOTTENRICHTER KRANZBÜHLER: Page 1 of the document book, Volume I.

THE PRESIDENT: Yes.

Trial of the Major War Criminals Before the International Military Tribunal, Nuremburg, 14 November 1945-1 October 1946, Volume 13 · 第 12 / 42 题