23 Nov. 45

in the way which he will overcome with the utmost energy and ruthlessness."

The supply of foreign currency had shrunk because of preparations for the invasion of Czechoslovakia, and it was considered necessary to replenish it. "These"--and I am now referring to the third paragraph of that same Page 25 of Document 1301-PS:

"These gains made through the export are to be used for an increased armament. The armament should not be curtailed by the export activities. He received the order from the Führer to increase the armament to an abnormal extent, the Air Force having first priority. Within the shortest time, the Air Force is to be increased fivefold; also the Navy should get on more rapidly, and the Army should procure large amounts of offensive weapons at a faster rate, particularly heavy artillery pieces and heavy tanks. Along with this manufactured armaments must go, especially fuel, powder and explosives are to be moved into the foreground. It should be coupled with the accelerated construction of highways, canals, and particularly of the railroads."

In the course of these preparations for war, a clash of wills ensued between two men, the Defendant Göring and the Defendant Schacht, as a result of which the Defendant Schacht resigned his position as head of the Ministry of Economics and plenipotentiary for the war economy in November of 1937 and was removed from the presidency of the Reichsbank in January of 1939. I do not propose, at this moment, to go into the details of this controversy. There will be more said on that subject at a later stage in these proceedings, but for the present, I should like to have it noted that it is our contention that Schacht's departure in no way implied any disagreement with the major war aims of the Nazis. The Defendant Schacht took particular pride in his vast attainments in the financial and economic fields in aid of the Nazi war machine. And in the document bearing the number EC-257, which is a copy of a letter from the Defendant Schacht to General Thomas, in the first paragraph of the letter:

"I think back with much satisfaction to the work in the Ministry of Economics which afforded me the opportunity to assist in the rearmament of the German people in the most critical period, not only in the financial but also in the economic sphere.I have always considered a rearmament of the German people as conditio sine qua non of the establishment of a new German nation."

The second paragraph is of a more personal nature and has no real bearing on the issues before us at this time.