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                                         TRANSLATION OF DOCUMENT 3787-PS
                                                                        
Vol. 67-3[pencil note]         140/39. W/Le 29

Supreme Command of the Armed Forces
AFA/L No. 1436/39 g Kdos IV

                                                  Berlin, 10th July 1939
                                                                        
                       Subject: 2nd Meeting of the Reich Defense Council
                                                  100 Copies. 84th copy.
                                                            (224) pencil
                                                                        
                         MOST SECRET
                              
I enclose herewith the report of the 2nd meeting of the Reich Defense
Council on 25th June 1939.

--1 appendix
Chief of the Supreme Command of the Armed Forces

                                              By order of and acting for
                                                 [signed] v. [illegible]
                                               [stamp] Economic Staff Le
                                                          14th July 1939
                                                              No. 140/39
                                                                        
Distribution:

I. Party:

Fuehrer's Deputy for the attention of SS-Brigadefuehrer Knoblauch  --
1st Copy.

II. Reich Departments and Prussiart State Ministry:

Chief of the Reich Chancellery -- 2nd Copy.

for the attention of Min. Dir. Kritzinger
for the Chief of the Reich Chancellery  -- 3rd Copy.

President of the Secret Cabinet Council
Ministerpraesident General Field Marshal Goering
     Commissioner for the Four Years Plan
     and the Prussian State Ministry
     for the attention of Min. Councillor
     Bergbohm -- 4th & 5th Copies.
     
Reich Air Ministry and
     C. in C. Air Force
     Chief of the Ministry Office
     for the attention of Generalmajor
     Bodenschatz -- 6th & 7th Copies.

Foreign Office
for the attention of Legation Councillor
Dr. Baron v.d. Heyden-Rynsch.  -- 8th Copy.

                                                              [Page 719]

General Plenipotentiary for Reich Administration
for the attention of Min. Section Head
Dr. Danckwerts. -- 9th-18th Copies.
     For Direction Staff of the General
          Plenipotentiary for Administration.
     For Reich Ministry of the Interior.
     For Reich Ministry of Justice.
     For Reich Ministry of Education.
     For Reich Ministry for Church Affairs.
     For Reich Office for Planning.
     
General Plenipotentiary for Economy
for the attention of Min. Director Sarnow:  19th 29th Copies.

     For Direction Staff of the General
          Plenipotentiary for Economy.
     For Reich :Ministry of Economy.
     For Reich Ministry of Food & Agriculture.
     For Reich Ministry of Labour.
     For Reich Chief Forrester.
     For Reich Commissioner for Price Control.
     
Reich Ministry of Finance

     for the attention of Min. Section Head:
          Geh. Rat. Dr. Bender. 30th Copy.

Reich Ministry of Finance

     for the attention of Finance President
     von Dietz. 31st Copy.
     
Reich Ministry of Transport -- Motor Transport

     and roads--
     for the attention of Min. Section Head
     Baur.  32nd Copy.
     
Reich Ministry of Transport -- railways --

     for the attention of Min. Councillor
     Dr. Ebeling. 33rd Copy.
     
Reich Post Ministry

     for the attention of Min. Councillor
     Honold. 34th Copy.

Reich Ministry of Enlightenment and Propaganda

     for the attention of Oberstleutnant
     Wentscher. 35th Copy.

Reichsbank Directorate

     for the attention of Reichsbank Director
     Dr. Mueller.  36th Copy.

                                                              [Page 720]

General Inspector of German roads

     for the attention of Chief Government Councillor
     for Construction (Oberreg. Baurat) Henne. 37th Copy.

III Armed Forces:

     OKH (Section 2 of Army General Staff). 38th-47th Copies.
     OKM (A II).48th-53rd Copies.
     Reich Minister for Air and C. in C. Air Force.
     (Section 2 of the Air Force General Staff). 54th-61st. Copies.

Supreme Command of the Armed Forces:

     WZ.                       62nd Copy.
     WH.                       63rd Copy.
     Armed Forces Reserve [?j (WR).  64th Copy.
     L (I, II, IV).             65th-70th Copies.
     Armed Forces Communications Service
     also to the Liaison Officer at the
     Postal Ministry).     71st-73rd Copies
     A/Ausl.Abw.           74th-77th Copies.
     General Armed Forces Department.   78th-79th Copies.
     Armed Forces Staff.        80th-84th Copies
     Reserve held by L IV.     85th-100th Copies.

                         ----------
                              
                           REPORT
               ON THE 2ND MEETING OF THE REICH
                       DEFENSE COUNCIL

Date: 23.6.1939.
Commencement: 1110
Place: Large Conference Room of the Reich Air Ministry.

                                                       Termination: 1355
                                                                        
President: Ministerpraesident General Field Marshal Goering.

Persons present:

                  Supreme Reich Authorities
                              
The Fuehrer's Deputy                 SS-Brigadefuehrer Knoblauch
Chief of the Reich Chancellery       Reichminister Dr. Lammers
Ministerpraesident General           Secretary of State Koerner
     Field Marshal Goering           Secretary of State Neumann
Commissioner for the Four Years Plan Min. Councillor Bergbohm.
Prussian State Ministry              Oberst.v.Schell
                                     Oberstleutnant Schricker

                                                                           [Page 721]

General Plenipotentiary for          Reichsminister Dr. Frick
     Reich Administration            Reichsfuehrer-SS Himmler
                                     Secretary of State Pfundtner
                                     Secretary of State Dr. Stuckart
                                     General of the Regular Uniformed
                                          Police Daluege
                                     Ministerial Section Head Danckwerts
General Plenipotentiary for Economy  Reichsminister Funk.
                                     Secretary of State Dr. Posse.
                                     Secretary of State Dr. Syrup.
                                     Secretary of State Dr. Landfried
                                     Secretary of State Backe
                                     Ministerial Councillor Dr. Burandt
Reich Ministry of Finance            Keichsminister count Schwerin
                                     v.Krosigk.
Reich Ministry of Transport          Reichsminister Dr. Dorpmueller
                                     Secretary of State Kleinmann
General Inspector of German Roads    Professor Dr. Ing. Todt
                                     
                        ARMED FORCES [Wehrmacht]
                                     
Supreme Command of the Armed Forces  Generaloberst Keitel
     WFA (Secretariat Reich Defense  Oberst d.G. Warlimont
Council)
                                     Oberst d.G. Gause
                                     Oberstleutnant v.Mauch
Armed Forces Staff                   Generalmajor Thomas
Supreme Command of the Army          
Army General Staff                   General of Artillery Halder
                                     Oberst i.G. Gercke
General Army Department              Oberst d.G. Burdach
Supreme Command of the Navy          Grossadmiral Dr.h.c.Raeder
Reich Minister for Air and C. in C.  Generaloberst Milch
Air Force
                                     General der Flieger Stumpff
                                     Generalmajor Bodenschatz
                              
                              
                         ----------
                              
                          CONTENTS
                              
DISTRIBUTION OF LABOUR:
Page

     Directives of the President of Reich Defense Council.
     Principles governing the distribution and employment of the
     population in wartime.
     
                                                              [Page 722]
     
     Employment of labour in the case of mobilization; Schedule of
     manpower for the war.
     Effect of the schedule of manpower on the continued direction of
     economy.
     Economy in personnel in public administration.

Increase in the efficiency of the Transport Service.
Suspension of the Secret Protection of the Reich Defense Laws

                         ----------
                              
                       A. INTRODUCTION

Ministerpraesident General Field Marshal Goering emphasized, in a
preamble that, according to the Fuehrer's wishes, the Reich Defense
Council was the determining body in the Reich for all questions of
preparation for war. It is to discuss only the most important questions
of Reich Defense. They will be worked out by the Reich Defense
Committee.

Meetings of the Reich Defense Council are to be convened only for those
decisions which are unavoidable. It is urged that the Departmental
Chiefs themselves be present.

                  B. DISTRIBUTION OF LABOUR

I. The President announced the following directives to govern the
distribution and employment of the population in wartime.

1. The total strength of the Armed Forces is determined by the Fuehrer.
It includes only half the number of those fit and liable for military
service. Nevertheless, their disposition will involve difficulties for
economy, the administration, and the whole of the civil sphere.

2. When a schedule of manpower is made out, the basis on which the
question is to be judged is how the remaining number, after those
required for the Armed Forces have been withdrawn. can be most suitably
employed.

3. Of equal importance to the requirements of the Armed Forces are those
of the Armament Industry. It, above all, must be organized in
peace-time, materially and as regards personnel, in such a way that its
production does not decrease but increases immediately with the outbreak
of war.

4. The direction of labour to the vital war armament industry and to
other civilian requirements is the main task of the General
Plenipotentiary for Economy.

a. War armament covers not only the works producing war materials, but
also those producing synthetic rubber (Buna),

                                                              [Page 723]

armament production tools [Waffenbetriebsmittel], hydrogenation works,
coal mining etc.

b. (1) As a rule, no essential and irreplaceable workers may be taken
away from "war decisive" factories, on whose production depends the
course of the war, unless they can be replaced. Coal mining is the most
urgent work. Every worker who is essential to coal mining is
"indispensable".

Note. Coal mining has even now become the key point of the whole of the
armament industry, of communications and of export. If the necessary
labour is not made available for it now, the most important part of the
export trade, the export of coal, will cease. The purchase of coal in
Poland will stop. The correct distribution of labour is determinative.
In order to be able to man these key points with the right people,
severe demands will shortly be submitted to the Fuehrer which, even in
the current mobilization year, will under certain circumstances, lead to
an exceptional direction of the war, e.g. to the immobilization of
lorries and to the closing down of unessential factories owing to lack
of coal.

In addition, there is the supplying of Italy and other countries such a.
Scandinavia with coal (to maintain the German supplies of iron).

(2) The remaining "war essential" industries can and must suffer losses,
as must the "vital" industries which are of importance to the life o f
the people, --cf. No. 23--.

Note by the Reich Defense Committee. The industries will be combined
under the term "war economy industries," --cf. the "General principles
for cooperation between the OKW and the General Plenipotentiary for
Economy in the preparation of war economy industries for war" dated
3.5.1939, which was approved by the President of the Reich Defense
Council, and the "Principles for the distribution and direction of the
Population in wartime," dated 10.6.1939.

c. (1) An important and valuable specialist worker will be of more use
in his place of work than at the fighting front. The greater number of
specialist workers must be drawn from those who are no longer liable for
military service, that is from the older age groups.

(2) A second category of workers liable for military service will be
called up during the war after their replacements have been trained. A
decisive role is played by the extensive preliminary training and
retraining of workers.

(3) Preparations must be made for replacing the mass of other workers
liable for military service, even by drawing on an increased number of
women. There are also disabled servicemen.

(4) Compulsory work for women in wartime is of decisive importance. It
is important to proceed to a great extent with the training of women in
war-essential work, as replacements and to augment the number of male
workers.

                                                              [Page 724]

d. In order to avoid confusion when mobilization takes place, persons
working in war-essential branches e.g. administration, communication,
police, food, will not at first be removed. It is essential to establish
the degrees of urgency and the standard of value.

e. In the interests of the auxiliary civilian service, provided by every
European people to gain and maintain the lead in the decisive initial
weeks of a war, efforts must, in this way, be made to ensure by a
trustworthy organization, easily understood, that every German in
wartime not only possesses his mobilization orders but has also been
thoroughly prepared for his wartime activity. The works must be adapted
to receive the replacements and additional workers.

II. The President o f the Reich Defense Committee, Generaloberst Keitel,
Chief of the OKW, made a report explaining the "Principles for the
distribution and employment of the population in wartime," issued by the
Reich Defense Council on 10th June 1939.

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