International Military Tribunal - The Nuremberg Trials - Complete Tribunal Proceedings (V. 6)

In the second part of this chapter we shall examine briefly the question of clearing. The Tribunal is acquainted with the functioning of clearing, and I shall not revert to this. I shall indicate under what conditions the French Government at the time was made to sign agreements which were imposed upon it.

Parallel to the discussions relative to the indemnity for the maintenance of occupation troops, discussions were entered into concerning a Clearing Agreement.

On the 24 July 1940 the German Delegation announced that it would shortly submit a project. On 8 August 1940 Hemmen submitted to the French Delegation a project of a Franco-German arrangement for payment by compensation. This project, which I submit as Document Number RF-231(bis) of the French documentation, shows arbitrary provisions, which could not be voluntarily accepted.

It provided for financial transfers from France to Germany without any equivalent in financial transfers from Germany to France. It fixed the rate of exchange at 20 francs for 1 Reichsmark by a unilateral and purely arbitrary decision, whereas the rate on the Berlin Exchange was approximately 17.65 and the real parity of the two currencies, taking into account their respective purchasing power on both markets, was approximately ten francs for one Reichsmark.

I pass to Page 34. The French Delegation of the Armistice Commission submitted unsuccessfully a counter project, on 20 August 1940, and attempted to obtain a modification of the most unfavorable clauses. I submit this project as Document Number RF-232.

On 29 August 1940, the French delegation at the Armistice Commission brought up in detail the question of the parity of the franc and the Reichsmark. It called attention to the fact that the prohibition of the financial transfers from Germany to France would create gross inequality, whereas the transfers in the other direction were organized, and this meant the French Government giving its agreement to a veritable expropriation of French creditors. An extract from this report is submitted as Document Number RF-233.

In a letter of 31 August, General Huntziger again took up in vain the argument concerning the Franc-Reichsmark rate of exchange. I submit this letter as Document Number RF-234.

On 6 September 1940 the French delegation made a new attempt to obtain a modification of the most unfavorable clauses in the draft of the Clearing Agreement, but it encountered an absolute refusal. The German delegation meant to impose under the cloak of a bilateral agreement a project elaborated by it alone.

I quote a passage from the minutes of the Armistice Delegation (Document Number RF-235). Herr Schone, the German delegate, stated: “I cannot reopen the discussion on this question. I can make no concession.”

Concerning the Franc-Reichsmark rate of exchange, on 4 October 1940 Hemmen notified the French delegation that the rate of 20 francs must be considered as definite and according to his own words “this is no longer to be discussed.” He added that if the French for their part refused to conclude the payment agreement, that is to say, the arbitrary contract imposed by Germany, he would advise the Führer of this and that all facilities with regard to the demarcation line would be stopped. I submit as Document Number RF-236 this passage of the minutes.

Finally, in the course of the negotiations which followed on 10 October 1940, the French delegation attempted for the last time to obtain an alleviation of the drastic conditions which were imposed upon it, but the Germans remained intransigent and Hemmen declared in particular . . .

THE PRESIDENT: M. Gerthoffer, do these negotiations lead up to a conclusion, because if they do, would it not be sufficient for your purpose to give us the conclusion without giving all the negotiations which lead up to it?

M. GERTHOFFER: Mr. President, I am just finishing the statement with the last quotation, in which the Tribunal will see what pressure, what threats, were made upon the French, who were then in contact with the Germans. I shall have concluded the discussion on clearing with this quotation, if the Tribunal will allow it, it will be a short one and it will then be finished:

“You are attempting to make the rate of the mark fictitious. I beg you to warn your government that we shall break off negotiations. I have in fact foreseen that you would be unable to prevent prices from rising, but export prices are rising systematically. We shall find other means of achieving our aims. We shall get the bauxite ourselves.” (Document Number RF-237.)

This is the end of the quotation.

Perhaps the Tribunal will allow me a very brief comment. At the Armistice Commission all kinds of economic questions were discussed; and the French delegates resisted, for Germany wanted to seize immediately the bauxite beds which were in the unoccupied zone. This last sentence is the threat: if you do not accept our Clearing Agreement, we shall seize the bauxite. That is to say, we shall occupy by force of arms the free zone.

The so-called compensation agreement worked only to Germany’s advantage. The results of the agreement are the following:

At the moment of liberation the total transfer from France to Germany amounted to 221,114 million francs, while the total transfer from Germany to France amounted to 50,474 million francs. The difference—that is, 170,640 million francs credit balance on the French account—represents the means of payment which Germany improperly obtained through the functioning of the clearing which she had imposed.

I now come to the third part of this chapter, which will be very brief. This is the seizure of goods and collective fines.

Besides the transactions which were outwardly legal, the Germans proceeded to make seizures and impose collective fines in violation of the principles of international law.

First, a contribution of 1,000 million francs was imposed upon the French Jews on 17 December 1941 without any pretext. This is shown in the documents submitted as Document Number RF-239 and cannot be contested.

Secondly, a certain number of collective fines were imposed. The amount actually known to the Finance Ministry amounts to 412,636,550 francs.

Thirdly, the Germans proceeded to make immediate seizure of gold. Even Hemmen admits in his last secret report, on Pages 33 and 34, Page 72 of the French translation, that on 24 September 1940 the Germans seized 257 kilograms of gold from the port of Bayonne, which represents at the 1939 rate 12,336,000 francs; and in July 1940 they seized a certain number of silver coins amounting to 55 millions.

Still following the secret report of Hemmen, for the period between 1 January to 30 June 1942 Germany had seized in France 221,730 kilograms of gold belonging to the Belgian National Bank, which represents at the 1939 rate the sum of 9,500 million francs.

It is not possible for me to present in detail the conditions under which the Belgian gold was delivered to the Germans. This question in itself would involve me in an explanation which would take up several sessions. The fact is undeniable since it is admitted by Hemmen. I shall simply indicate that as early as the month of September 1940, in violation of international law, Hemmen had insisted on the delivery of this gold, which had, in May 1940, been entrusted by the National Bank of Belgium to the Bank of France. Moreover, these facts are part of the accusations made against the ex-ministers of the Vichy Government before the High Court of Justice in Paris.

The results of this procedure were long, and frequent discussions took place at the Armistice Commission, and an agreement was concluded on 29 October 1940, but was in fact not carried out because of difficulties raised by the French and Belgians.

According to the former Assistant Director of the Bank of France, the German pressure became stronger and stronger. Laval, who was then determined to pay any price for the authorization to go to Berlin, where he boasted that he would be able to achieve a large scale liberation of prisoners, the reduction of the occupation costs, as well as the elimination of the demarcation line, yielded to the German demands.