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The evidence in the record makes it abundantly clear that the
predominant responsibility for research and production in the field of chemical
warfare agents immediately preceding and during the war was that of Farben.
Expansion of Plant Facilities. The
rearmament program required an enormous outlay of capital for expansion of
plant and production facilities. To meet those demands, special financial
arrangements were made by Farben with the Reich taking into consideration the
nature of the plants and their equipment, their purposes and the amount of
capital required [NI-10540, Pros. Ex. 669; NI-9193, Pros. Ex. 698]. The records
of Farben show, generally speaking, that three different plans were used: (1)
Contract plants for which loans were obtained from the Reich or a Reich agency
chiefly for the construction of new plants under arrangements whereby the loan
was paid off over a period of years by the allowance of depreciation write-offs
at an accelerated pace and rate [NI-7237, Pros. Ex. 696; NI-7242, Pros. Ex.
697]. Under this plan, the loan was actually paid off through the increased
price paid for the products of the plant. Among the expansions so financed were
plants at Bitterfeld, Aken, Rottweil and in the Leuna Works; (2) four-year
plants, built with Farben funds on order from the Reich under arrangements
whereby either: (a) the Reich agencies refunded to Farben the cost of
construction by the payment of annual installments under a redemption plan
fixed by contract, or (b) Farben was permitted by the contract to include
increased rates of depreciation in the calculation of prices until the cost of
installation had been absorbed. Expansions under this plan were not independent
plants but were extensions of existing Farben plants; (3) other forms of
governmental financial aid to Farben including: (a) subventions paid to Farben
for carrying out special building projects, (b) proceeds tax, as from Buna
sales, which could be used in construction of other plants as was the case of
the Auschwitz Buna plant, or (e) tax concessions for new products, as for
cellulose at Wolfen and for Buna at Schkopau and Huels, and (d) East Relief Tax
Decree allowing liberal exemptions from appraisal of investments.
The
agencies used by the Nazi government in carrying out arrangements for expansion
of plants and production facilities included the Reich-owned companies of
"Montan" and "Wifo". Often the contracts for construction and operation of such
plants by Farben included Wifo or Montan as a party. Of the 37 Montan chemical
works, 36 were built and operated by Farben and its subsidiaries [NI-9193,
Pros. Ex. 698, NI-7377, Pros. Ex. 645]. Witness Zeidelhack* estimated that the
capital value of those works alone totaled 1.2 billion |
__________
* See Zeldelhack testimony,
tr. pages 2339-2349.
1269 |
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