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[pre…] vailed in the United States at this period was affecting
the enterprise adversely. For example, by all the withholding of government
orders and also because of lack of foreign exchange, it was impossible to carry
out capital measures which in the future might become necessary for the welfare
of the enterprise, and in the minutes of the Chemical Committee of 25 May 1937
is the following remark: “Magnesium U.S.A. If we were to exercise this
option, the company would have great difficulties in securing government
orders, which are of vital interest to the business.” I should like to
remark that this option of 50 percent participation in the Magnesium
Corporation had — could have been obtained at a very small price; only a
few thousand dollars; but, as I say, this we could — we could more or less
— consider this option as participation. I mean to say that in the sale of
enterprises, especially large international transactions, there is a certain
compulsion on one side for which the other side cannot be held responsible.
Thus I see, and saw, the position in the Aussig-Falkenau case.
Yes,
that is what I mean to say.
Q. Now tell me what the connections were
between Farben and the Prager Verein after the sale of the Aussig-Falkenau
plants. Were relations impaired because of the purchase of these plants?
A. No, not at all. As far as I could judge, we had a friendship
agreement, too, which the Prager side and we, too, considered very important.
And we observed it.
Q. Tell me because of this transaction — that
is, the giving up of the Aussig and Falkenau plants — was the Prager
Verein financially weakened?
A. I am convinced that it was not. By the
payment of the purchase price by Farben, the Prager Verein had become to a
great degree liquid, and I emphasize once again that a large portion of the
purchase price was paid in the form of goods. The best proof of this is the
fact that at some time later, as far as I recall, it participated to 40 percent
in the company for building a rayon factory together with the Dynamit Nobel
Pressburg, and, according to the Friendship Pact, Farben had invited this
participation. This rayon factory at Pressburg proved to be an excellent
investment for Farben, for Dynamit-Nobel, and for the Prager Verein. That was
quite a profitable enterprise.
Q. You mean to conclude from the Prager
Verein's participation in this rayon project that, after selling the Aussig and
Falkenau plants, the Prager firm was enjoying prosperity? |
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