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Translation of document 3579-PS
SECRET REICH MATTER w 4520/40 G rS 10 Copies Copy 1. MEMORANDUM 1. In the period from 24 August — 12 September of this year negotiations have taken place in Moscow upon Russian request, in order to reexamine the state of the deliveries by both parties according to the Economic Agreement of 11 February 1940. The negotiations have shown that the German deliveries of the first half year fall short of the quota of the agreement by approximately 73 million Reichsmark. The Russians have transmitted proposals for the adjustment of this deficit, which fundamentally aim at a shortening of the period of delivery. The negotiations were interrupted on 12 September, in order to examine the Soviet proposals in Berlin and to draft German counter-proposals concerning additional deliveries to the Soviet Union. The Russians have sent information, that, according to the terms of the agreement, they would temporarily discontinue the deliveries, if neither their proposals nor our counter- proposals would bring about the fixed proportions of the deliveries. 2. The German delivery obligations for the next half year amount to -- Until 11 February 1941…233 million Reichsmark. Until 11 May 1941 including the above mentioned deficit of 73 million Reichsmark…311 million Reichsmark. To this must be added the German deliveries in exchange for Bessarabian grain and Bessarabian oil crops (40 million Reichsmark) and deliveries in exchange for the German raw material purchases from the Baltic territories. The examination, carried out jointly with the Reich Economic Ministry and the OKW, has shown that the execution of the armament program ordered by the Fuehrer permits neither an adjustment of the existing deficit of 73 million Reichsmark nor the fulfillment of the remaining German quota within the time specified. There is furthermore the directive of the Reich Marshal to avoid deliveries to Russia which directly or indirectly would strengthen the Russian war potential. If these decisions remain in force, then we shall have to expect an interruption of the Russian deliveries to Germany within a short period. 3. This means that the large imports of raw materials, esp. Of grain, mineral oil, cotton, rare metals and non-ferrous metals, phosphates will at least temporarily cease and at best will be resumed later upon a much lower scale and with great sacrifices in German deliveries. In the opinion of the Reich Food Ministry this would be especially serious in the case of the grain supply. To date Russian has delivered to us almost 1 million tons of grain. Russia is the only country which has a good grain crop and which therefore would be in a position to make further great deliveries. The Reich Food Ministry points to the fact that the national grain reserve will be used up during this grain production year [Getreidewirtschaftsjahr] so that we would start the next grain year without such a reserve. 4. The Reich Economic Minister, the Reich Food Minister, and the OKW have requested to ask the Fuehrer once more for a decision regarding the continuation of the economic relations with the Soviet Union. The raw material deliveries of Russia can only be approximately kept on the present level if the German deliveries to the USSR in the amount specified in section 2 (233 million Reichsmark, or 311 million Reichsmark plus 40 million Reichsmark of Bessarabian grain etc.) are made available and if they receive a priority as previously or at least a privileged equality with armament orders. Since it is principally a question of deliveries of machines, rolling mill products and coal, such an arrangement can only be made at the expense of the armament orders. 5. Probably as a reaction to the changed German attitude, the Russians have cancelled everything which in the economic agreement of 11 February 1940 had been planned at long range. That means that they do not want any processes, installations and equipment to be delivered over a long period, but that they want to restrict themselves to goods which will benefit their economy, esp. Their armament within the next 8-10 months. Therefore the conflict with our own military demands in the remaining small sector of deliveries of machinery and rolling mill products is still very much stronger than it used to be. 6. To date the Russian deliveries have been a very substantial support of the German war economy. Since the new economic agreements have become valid, Russia has delivered raw materials for more than 300 million Reichsmark; this includes grain for approx. 100 million Reichsmark. So far Russia has received an equivalent amounting to only approx. 150 million Reichsmark. The disparity existing at present between the German and the Soviet deliveries is caused by the fact that in the month of August there were Russian deliveries in the amount of 65 million Reichsmark as against German deliveries in the amount of 20 million Reichsmark. Our only economic connection with Iran, Afghanistan, Manchukuo, China, Japan, and beyond that to South America is the way through Russia, which is being exploited to an increasing degree for German raw material imports (soya from Manchukuo). Berlin, 28 September 1940 (signed) Schnurre.