Europaische WirtschaftsGemeinschaft

BEING in Translation:
EUropean Economic Community

Von:
ReichsWirtschaftMinister u. President der Deutschen ReichsBank Funk;
Professor Dr. Jecht, Berlin; Professor Dr. Woermann, Halle;
Dr. Reithinger, Berlin; MinisterialDirektor Dr. Benning, Berlin;
Gesandter Dr. Clodius, Berlin, und GauWirtschaftsBerater Professor
Dr. Hunke, Berlin

Mit einer EinFuhrung von:
GauWirtschaftsBerater Professor Dr. Heinrich Hunke
President des Vereins Berliner Kaufleute und Industrieller

HerausGeGeben von dem
Verein Berliner Kaufleute        und der        Wirtschafts – HochSchule
Und Industrieller                                                                        Berlin

Published
BERLIN 1942
Second edition 1943
Haude & Spenesche VerlagsBuchHandlung Max Paschke

------------------------------------------------------------------------------------------------------------------------------
To assist non Germans, reading the above, certain letters have been capitalised for convenience ONLY
Pamphlet #05

Europaische WirtschaftsGemeinschaft

BEING in Translation:
EUropean Economic Community

Von:
ReichsWirtschaftMinister u. President der Deutschen ReichsBank Funk;
Professor Dr. Jecht, Berlin; Professor Dr. Woermann, Halle;
Dr. Reithinger, Berlin; MinisterialDirektor Dr. Benning, Berlin;
Gesandter Dr. Clodius, Berlin, und GauWirtschaftsBerater Professor
Dr. Hunke, Berlin

Mit einer EinFuhrung von:
GauWirtschaftsBerater Professor Dr. Heinrich Hunke
President des Vereins Berliner Kaufleute und Industrieller

HerausGeGeben von dem
Verein Berliner Kaufleute        und der        Wirtschafts – HochSchule
Und Industrieller                                                                        Berlin

Published
BERLIN 1942
Second edition
1943
Haude & Spenesche VerlagsBuchHandlung Max Paschke

------------------------------------------------------------------------------------------------------------------------------
To assist non Germans, reading the above, certain letters have been capitalised for convenience ONLY

Pamphlet #05
Being the FIFTH of a series of Pamphlets being published on the internet at: www.SilentMajority.co.UK/EUroRealist/Germany1942
Greg Lance-Watkins, who has overseen this project for SilentMajority over the last few years would like to thank ALL those who have helped in tracking down the original full text in German, and the short term acquisition thereof, for photocopying., Also for the lengthy process of accurate translation and independent checking of the translation work.
The original copy is available for inspection at Glance Back Books in Chepstow.

The final pamphlet in the series will contain ALL the maps and relevant charts, together with a brief summary of the document.
The European Economic Community 

Mr. Funk, the Reich’s Economic Minister and President of the German Reichsbank

Professor Dr. Jecht, Berlin

Professor Dr. Woermann, Halle

Dr. Reithinger, Berlin, Ministerial Director

Dr. Beisiegel, Berlin

Secretary of State Königs, Berlin

Director Dr. Benning, Berlin

Ambassador Dr. Clodius, Berlin and Economics Committee Advisor

Professor Dr. Hunke, Berlin

With an introduction by

Economics Committee Advisor, Professor Dr. Heinrich Hunke, President of the Society of Berlin Industry and Commerce

Issued by

The Society of Berlin Industry and Commerce and the Berlin School of Economics

Second Revised Edition (Berlin 1943)

Haude and Spenersche Publishing House Max Paschke

Preface to the First and Second Edition

This text contains the lectures presented under the title “The European Economic Community” by the Society of Berlin Industry and Commerce at the start of 1942 in conjunction with the Economic Advisor to the Berlin Committee of the NSDAP and The Chamber of Trade and Industry.  The order of lectures was as follows:

•	Walter Funk, Reichs Economic Minister and President of the Reichsbank:
“The Economic Face of the New Europe”

•	Dr. Horst Jecht, Professor at The Berlin School of Economics:
“Developments towards the European Economic Community”

•	Dr. Emil Woermann, Professor at Halle University:  
“European Agriculture”

•	Dr. Anton Reithinger, Director of the Economics Department of I.G. Farbenindustrie A.G., Berlin: 
“The European Industrial Economy”

•	Dr. Philipp Beisiegel, Ministerial Director of the Reich’s Labour Ministry:
 “The Deployment of Labour in Europe”

•	Gustav Koenigs, Secretary of State, Berlin: 
“Questions About European Transport”

•	Dr. Bernhard Benning, Director of the Reich’s Credit Company, Berlin: 
“Questions About Europe’s Currency”

•	Dr. Carl Clodius, Ambassador of the Foreign Office:
 “European Trade and Economic Agreements’’

•	Professor Dr. Heinrich Hunke, Economic Committee Advisor of the NSDAP, President of Germany’s Economic Publicity Agency and the Berlin Society of Industry and Commerce: 
“The Basic Question: Europe - Geographical Concept or Political Fact?”

The lectures met with considerable interest and very strong agreement. On account of this, we feel we should make them available to a wider circle of people.
Berlin, September 1942

The Society of Berlin’s Trade and Industry - The President: Professor Dr. Heinrich Hunke, Advisor to the Economics Committee

The Berlin School of Economics - The Rector: Dr. Edwin Fels, Professor of Geography

	Index	Page	
Preface		  2	
Hunke	Introduction	  8	
	The Discussion So Far and its Results 	  8	
	Economic Practice	  9	
	Problems Related to Economic Community of Continental Europe             	 10	
PAMPHLET #01			
Funk	The Economic Face of the New Europe    	 15	
	Real and False Economic Freedom 	 15	
	Co-operation in Continental Europe	 18	
	Europe’s Resources and Completion 	 20	
	Directing of the Economy by the State and Work 
                     between the States of the Community	 22	
	The Movement of Payments between the States and European Currency Issues	 24	
	Securing the Area and Economy of Europe	 27 	
	The Will for Co-operation in the Economic Community               	 28	
PAMPHLET #02			
Jecht	Developments towards the European Economic Community 	 30	
	The European Economic Community and its Enlargement    	 30	
	The Problem of the European Economic Area in Late Antiquity and 
                                                                                            the Middle Ages	 31	
	Recent Changes to the Problem of the Area of Europe 	 33	
	The Formation of the Nations and Independent Economies  	 33	
	Overseas Expansion and its Consequences for Europe       	 34	
	The Release of England from the Continent and the Formation of the 
                                                                                  “Free Global Economy”	 35	
	Europe’s Economic New Order: The Present Task                             	 37	
	Collapse of the Previous World Economy	 38	
	Means and Objectives of the European Economic Community        	 39	
	Outlook                                                  	 41	
PAMPHLET #03			
Woermann	European Agriculture                           	 42	
	The Development of Agricultural Enterprises and 
                                             the Structure of  Europe’s Food Economy 	 42	
	The Formation of the Division of Labour in World Agriculture                  	 47	
	Production Increase in Germany and Italy                                       	 49	
	The Supply Situation under the Influence of Economic Restrictions and Change                                                                    	 50	
	Political Consequences for Production                                               	 52	
	Possibilities of Increasing Europe’s Food Production 	 53	
PAMPHLET #04			
Reithinger	The European Industrial Economy                                   	 59	
	The Development of Industry in the 19th Century                              	 59	
	Stages of Technical and Economic Development                             	 60	
	Socio-Political Effects                                                                       	 60 	
	The Loss of Europe’s Hegemony in the World War                        	 61	
	The Transition to State Direction and Planning                              	 62	
	New Europe and its Shared Features                                             	 64	
	Regional Differences in Europe                                            	 66	
	The Major Powers at War - A Comparison of their Capabilities                 	 68	
PAMPHLET #05			
Beisiegel	The Deployment of Labour in Europe                           	 71	
	Population Density, Number and Structure of the Employed  	 71	
	People - The Wealth of Europe                                                                       	 72	
	Worker Exchange on the Basis of Inter-State Agreements            	 75	
	Adaptation of the Organisation for Labour Deployment      	 78	
	Employer Action and Order Switching   	 79 	
PAMPHLET #06			
Koenigs	Questions about European Transport                               	 81	
	“Technical Unity” in the Railway System	 82	
	The Magna Carta of Europe’s Internal Riverboat Traffic	 84	
	Motorways’ Contribution to the European Transport Community	 87	
	Community Work in Shipping                                                             	 88	
	Joint Work in Air Traffic                                                                    	 89	
PAMPHLET #07			
Benning	Questions about Europe’s Currency                                   	 91	
	Currency’s Two Sides                                                                         	 91	
	The Internal Economic Situation of Europe’s Currencies  	 92	
	Managing Foreign Exchange and Bilateral Settlements   	 92	
	Development of Multi-Lateral Settlements                                           	 94	
	The Problem of the Clearing Balances                                              	 95	
	Adjustment of Europe’s Exchange Rates                                          	 96	
	Future Formation of the European Currency System    	 97	
	Europe’s Future Currency Relationship to the Currencies of Other Major Nations 	 99 	
	What about Gold?                              	100	
	The European Currency Bloc                                                              	101 	
PAMPHLET #08			
Clodius	European Trade and Economic Treaties                                  	102	
	The Period of the Old Trade Policy                                                        	102	
	German Economic and Trade Policy since 1933                                      	103	
	Changes to Trade Policy Caused by the War                                          	105	
	The Reversal of the Law of Supply and Demand                                   	106	
	The Question of Labour Deployment in Europe                                         	106	
	The Problem of Traffic                                                                             	106	
	Effects of the English Blockade on Europe                                               	106	
	Principles of European Co-operation                                                           	107	
	The European Regional Principle                                                                 	107	
	Europe’s Economic Independence                                                               	107	
	Europe and the Global Economy                                                                	108	
	Internal Preconditions of a European Economic Community                  	109	
	Ways to Achieve European Co-operation                                                     	111	
PAMPHLET #09			
Hunke	The Basic Question: Europe – Geographical Concept or Political Fact?      	113	
	New Learning and Thought                                                                            	113	
	Starting Point for European Task 	114	
	Three Eras                                                                                                        	114	
	The Character of the Global Economy                                                          	114	
	Political Weakness of Continental Europe due to the Idea of 
                                                                         English World Superiority      	116	
	Britain’s Dominant Theory about the Modern National Economy	117	
	The Foundation of the European Economic Community                                     	118	
	Categories within the European Economic Community                                              	119	
	Three Principles                                                                                               	119	
	A New Era                                                                                                        	121	
	Taking a Look Back to the Past and to the Future               	123	
PAMPHLET #11
	The Illustrations – Maps, Charts etc. Summary of the series and Comments
	Request for help locating further FACTS
		Including Reinhard Heydrich’s 1942 Reichs Plan for The Domination
of EUrope – published in Berlin in 1942 believed to have been November.
ALSO – details of the Berlin Conference of 1944 Titled ‘How Will Germany Dominate The 
Peace, When It Loses The War.’ & details of the massive amounts of cash moved 
out of Germany during the war to safeguard the future of German domination against the economic collapse of losing the Second World War against EUropean Union. AND connections with organisations like The Bilderbergers, Council for Foreign relations, Tri Lateral Commission and other arms of the New World Order.

Introduction - by Professor Dr. Heinrich Hunke, Economic Committee Adviser to the NSDAP, President of Germany’s Economic Publicity Agency

Around the end of 1939, most of Europe was either consciously or unconsciously under the influence of the economic concept of England.  Over recent years, however, it has been swept out of European countries, politically, militarily and economically.  Politically the three-power pact has given honour once again to the ancient figures of life, people and room.  It has also established a natural order and a neighbourly way of co-existing as the ideal of the new order.  The foundation of English economics, which is the basis of the balance of powers, has been militarily destroyed.  And economically, a change has come about following the political and military development, the shape of which is easy to describe, but whose final significance is very difficult to evaluate.  I can only repeat, that the changing order that is happening now has to be ranked as one of the greatest economic revolutions in history.  It signifies a reversion of the economy of Europe to a time before the English concept of building an overseas Europe, i.e. an awareness of one’s own country.

The Discussion so far and its Results

Discussions about questions relating to Europe started as the power of the NSADP grew.  At the Congress of Europe in Rome from 14th to 20th November 1932, Alfred Rosenberg developed, for the first time in front of an international forum, thoughts and ideas that have moved us since.  No one, who fights for a new economic order in Europe, can ignore these perceptions and conclusions.  The economic and political wheel was set in motion, when the NSDAP declared the militarisation of the German economy.  It is to the credit of the journal ‘Germany’s Economy’ that it first seized these questions in 1932, kept on bringing them up and stuck doggedly to those original perceptions.  The idea of German economic self- sufficiency in the new political sense and the German economic militarisation are synonymous with this journal.  Besides this, Daitz, the ambassador, has earned the special credit of being the first to have related German economic history to the present time.  Part II of his selected speeches and essays, which appeared in 1938 under the title ‘Germany and the European Economy’, summarizes his concepts formed between 1932 and 1938.  The Italian, Carlo Scarfoglio, delivered with his book ‘England and the Continental Mainland’, a decisive historical contribution to the consciousness of the European continent.  Meanwhile German and Italian economic policy drew the political consequences from the historical lessons that were learnt during the blockade and learnt again during the sanctions.  The speech made in Munich in 1939 by the leader of the Reich’s farmers, R. Walther Darre, at the 6th Great Lecture at the Commission of Economic Policy of the NSDAP, takes a special place in the discussion at that time.  Its theme was “The market order of the National-Socialist agricultural policy - setting the pace for a new foreign trade order.”

While our leader maintained the hope of reaching a peaceful agreement with England, the route for European economic unity remained problematic.  The end of 1939 was a decisive point and it was natural that the years 1940-1941 heralded the new economic and political order.  The writer, in particular, developed and extended in speech and writing the intellectual fund of the new economic policy, which has been translated into most languages, so that today everywhere the great constructive texts are known.  These contexts revolve around the following issues:

1.	Theory about the Reich and the European economy.

2.	The historic, cultural, and economic significance of the German economic order.

3.	The foundations of the future economic relationships between the states.

4.	The nature of the European economic community.

On 25th June 1940 the Reich’s Economic Minister, Funk, publicised in his official capacity his thoughts, which underlined the development so far and thus gave them state sanction.  In October, the journal ‘German Economy’ summarised for the first time the principles of European co-operation, the fundamental principles of German foreign trade, Germany’s export economy and ways and means of promoting export.  It did so in a popular review “About A New Europe”, providing an overview of the important problem of European economic fusion.  Around the end of 1940 the Berlin historian Fritz Rorig finally outlined in his book “Hanseatic Essence” the historical foundations of the greatest economic and political achievement by the Germans.

I am clear in my mind that total clarity is to be found in the principle questions: The necessity is recognised for a political order for the economic co-operation of the people.  The nature of the new order which is: awareness of tradition, using up one’s own economic resources, long term economic agreements and fair relations, is affirmed.  The economic inter-dependence is underlined by fate.  The economic unity of Europe is thus evident.

Economic Practice

Even practical economic life has increasingly allowed entry to new thoughts.  I am able to see the decisive steps in the start and realisation of the following points:

1.	In the increasing payment traffic through Berlin.

2.	In the exchange of experiences in various areas of economic life.   Thereto belong also the statements of ministers and business people, the calls made by special advisers and the collective tackling of important tasks relating to the economy.  Even the specialist is surprised, once he has taken the trouble to put together all the connections.  Today they are already legion.

3.	In the signing of long term economic agreements between the Reich and the other European states, which the public is aware of.  There can be no doubt that such agreements are those of the future.  

Of course, that cannot prevent unclear points and new problems from arising, which become evident at the time when the situation is reviewed.

Problems Related to the Economic Community of Continental Europe

These unclear points primarily relate to the concept of economic direction, the extent of solidarity and neighbourly attitude, the development of one’s own powers, the care to maintain the standard of living and the question of raw material purchase from foreign countries. It is natural that one or another issue will take priority of interest, depending on the set of conditions that prevail.  It should be attempted at this point to give a reply, albeit a summary one.

There can be no doubt that the concept of direction of the economy, or rather its leadership, is as novel as it is revolutionary.  Its classification is all the more important, as the fate and consequence of European co-operation depend principally on a new consistent form of economic understanding.  The Anglo-Saxon view of economics is dead: consequently, even the so-called ‘classical’ national economy is no longer classical, but it has survived.   So what it comes down to is that a new understanding arises to do with ideology and terminology, which represents a sound basis for agreement and co-operation.  Relating to this, one must point out the following in detail:

1.	Economic direction is not a momentary emergency solution, instead it forms the core of new theory and practice.  First of all, it takes the place of individual egotism and the automatic autonomy of the Anglo-Saxon precept.

2.	Economic direction is not identical to the tendencies of a centrally planned economy.  It does not seek to cancel the individual or to administer through the state operators.

3.	Economic direction really means the following: the new instruction of the creative and constructive power of the individual in relation to the whole system; the creation of a consistent economic view and an attitude towards the economy; the selection of important tasks through political leadership and the state’s final decision on all questions about economic power.  Beyond this, the economy is free and responsible to itself.  

The degree of solidarity of the individual economies and their neighbourly attitude is characterised by three guidelines: 

Firstly, it is limited in regard to its own economic development by the recognition that the utilisation of individual resources represents not only a requirement of the new economic precept, but is the very foundation for economic activity.  The European economic community has no interest in leaving any abilities or possibilities unutilised.  

Secondly, it contains the obligation that, because of Europe’s freedom, consideration is given firstly to continental Europe regarding any matter related to economic activity.  Not only should the shared fate of the European people be emphasized, but the fact should also be stressed that the supplementation of the European economies beyond their borders is possible and sought after.

Thirdly, it must be maintained that, above all else, the spirit of the individual economies may not be allowed to go against the spirit of neighbourly co-operation.

The question of developing one’s own powers refers to the problem of monocultures, of industrialisation of the agrarian south-east and the awakening of new needs.

An answer can easily be given to the first question.  Monocultures are the result of the same economic precept that made the world market price the determining factor in the economy.  According to that precept, people and land are the vestiges of some by-gone age.  Europe is well on the way to destroying these monocultures with initiatives ranging from land improvements and growing new crops to discovering new local resources.  All these have the same aim, which is to develop the economy and broaden its basis.  Germany and the whole of Europe can only greet these efforts with gratitude.

The industrialisation of the south-east poses a particular problem regarding these questions.  As I am unable to handle this problem - like all other problems - here in a comprehensive and exhaustive manner, because the industrialisation of economies is theoretically a difficult problem, I can only say as follows:

1.	Just as it is in the nature of things that each country will strive to utilise its available resources for its own production, so will there will be a knock-on effect for other economic partners.

2.	If, as is the case in the South-east European countries, there is heavy 
over-population in the countryside, then there are only three possibilities to solve it: itinerant workers, a permanent emigration and an ‘intensivisation’ of the local economy, a term correctly created by Dr. Ilgner for the problem of industrialisation.  Itinerant workers can only form a part solution.  Besides, it only applies to agricultural and construction workers and gone on for ages.  Permanent emigration from Europe is just as false as impossible.  There just remains the intensivisation of the economies of south-east Europe as the way to self-help.

3.   The economies should make it possible for an independent life according to the modern economic view.  The intensivisation of their economies therefore is right for the time.

4.   The old features of industrialisation, which evolved from the price collapses in countries with agriculture and raw materials, have to now belong to the past.  Europe is a communal living area.  Only through a joint development of economies - and not through independence from one another - can protection against crises be achieved.

5.    The tasks that have to be solved in Europe are so big that the powers needed to do so have to be released by an intensivisation of the individual economies.  This can be easily done by employing the workers that have been liberated in new branches of the economy.

Without affecting the difficult questions of purchasing power, it can be regarded as proven that the joint work to build up Germany’s and the south-eastern states’ in the area of industrialisation lies in the direction of the intensivation of interest of the whole continent.  

One important and until now completely overlooked task in this regard exists and that is the awakening of new needs in the south-eastern countries.  It is because, in those countries, wealth has grown and will gradually continue to grow, as a result of the reliable purchase of agricultural products and available raw materials at adequate price levels.  According to the principle in economics that giving equals taking, peoples’ living habits there will have to change, otherwise one day the process will come to a halt.  Germany’s ability to absorb the products from the south-east is practically infinite, whereas creating a demand for German goods there is not only a matter for economic intensivation but also one of modifying the people so they consume more.  This task is of such importance that it has to be considered from the very outset, so that the south-eastern European economies are elevated after the war.

Equally important as the industrialisation of south-east Europe is the question of the standard of living in the north.  Their economic development and high standard of living, which underpin their lives though all economic conditions, should not be mistaken.  This standard of living has grown considerably during the 19th century and around the time of the world war due to free trade, so that various circles view world economic events with particular concern.  From a German viewpoint, only the following points can be made:

Firstly, a higher standard of living is also the aim of the German government. The German people not only understand this well, but also through its fight wants to ensure European civilisation and culture.  This fight will benefit the whole of Europe, and with it the north.

Secondly, despite being connected successfully to England and its economic system (one should not ignore the countless economic troughs that feature there), the economies of the north whose fate and greatness are very closely linked to Germany.

Thirdly, the northern states’ difficulties are going through a temporary phase of adjustment.  In the long term, this will bring about a lasting advancement, rather than destruction, for their economies’ foundations.

Maintaining a high standard of living is not an insoluble problem.  To finish, I now come to the problem of purchasing raw materials from overseas markets.  A leading south-east European economist once wrote about this principal question: “Unlike the war, we were in the following situation: in order to import raw materials from overseas countries, we bought goods from west European countries with foreign exchange.  In the area of continental Europe there is no gold.  Everything had to pass through the system of clearing - goods sold against goods. We have no product that can be sold to North or South America.  That means that the leading nations are obliged to acquire and distribute to us the raw materials that we need.  The leading nations of Europe can supply, with its capacity, enough products to overseas countries with which to acquire raw materials.  The one question is whether exchange will ever happen… Even before the new order is introduced, and without even joining in with the Axis powers, we stand in solidarity outside Europe with its traffic of goods…”

We can only agree with this view, leaving the matter open, as the Reich’s Economic Minister Funk described, how large the direct sources of help will be and whether raw material acquisition from overseas will take place through the system of clearing or free flow of currency.  With the introduction of the multi-lateral clearing system, on a practical level there is no change from the pre-war time.  As this learned person said, “All the benefits of the method of paying are regained from the system of free currency.”  Nor can it be realised - contrary to him - that this system of clearing through Berlin should function without those countries outside the European system. But the decisive factor is the way in which the continent is bound to Germany and Italy by one fate.

Since 1940, therefore, we are faced with an unparalleled economic and political revolution.  The problems created for us are large but can be solved.  Their solution will give Europe the peace it yearns for and will bring a great era of joint development.  It is worth fighting and working for this. 

 The following discourses should contribute to helping us to broaden and deepen our understanding of the tasks and nature of the European economic community.

The Deployment of Labour in Europe by Dr. Philipp Beisiegel,
Ministerial Director of the Reich’s Labour Ministry

Europe has awoken, the idea of a united Europe is marching and cannot be stopped.  The combination of politics and military forces has already led to a close co-operation of a cultural and economic nature.  Numerous economic treaties between European nations, especially Germany’s partners, reveal the firm will of Europe to assert itself in spite of the war and in spite of, or because of, the English and American blockade.  In the enlarged economy the people of Europe want to grasp and master their own fate.  As discussed previously, the food question in Europe has been safeguarded and in most countries it is possible to achieve considerable increases in food production.  Also the supply of raw materials is now safeguarded.  Through a fair and pragmatic distribution of necessary foodstuffs and industrial raw materials and through an effective transport system and a reasonable currency policy, it is possible to ensure that food and commercial goods from Europe actually go to benefit its inhabitants.

Extensive agricultural production possibilities and deep industrial reserves of raw materials are no good on their own.  They can only be of use if sufficient numbers of workers are available to utilize them and if the reserves are deployed as efficiently as possible.  Productive humans are key to the European economic community, not coal and iron or economic treaties and currencies.

Population Density, Number and Structure of the Employed

Out of the world’s population of 2,175 million inhabitants, 1,196m live in Asia and 531m in Europe i.e. about one quarter.  America has 277m, Africa 160.6m, Australia and the islands of Asia Pacific 10.8m.  Of greater relevance here is the population density.  Europe has easily the highest rate with 46.5 people per km2.  Asia has 28.7, America 6.5m, Africa 5.3, Australia and Asia Pacific 1.3.  The density rates vary greatly among the European countries.  The highest is Belgium with 275.2, then Holland 253.8, Great Britain and Northern Ireland 194.6.  Germany including Bohemia and Moravia has 132.3, Italy 134.7, Norway 9.1, Finland 11.2 and Sweden 15.5.

Of even greater importance is the number of workers and their distribution over the three main economic segments: countryside, and forest, industry and mining and trade and transport.  In Europe’s economy there are 255m workers, the most of which are in Russia (84.4m) and the least (1.5m) in Slovakia.  Germany has 44m, or 52.2m including its protectorates.  Great Britain and Ireland have 24m, Italy 19m, France 22m.  In Russia before the war, 57.4% of its population was employed - the highest rate in Europe.  The lowest rate was in Spain 37.2%.  Germany had 49.5%.

92m out of Europe’s 255m workforce were female.  In Germany 38.2% are female, in Finland 41.1%, in Bulgaria 45.2%, Russia 46.6%, Italy 28.6%, France 36.5%, England 29.8% and Spain 12.9%.

The distribution of the workforce gives an interesting insight into the economic structure of Europe.  In Germany, 29.2% of its workers were in the countryside and forest economy, 40.6% in industry and mining and 16.6% in trade and transport.  These figures include Poland, which is now part of the Reich.  In 12 of the 23 countries of Europe more than 50% of the workers are in the first segment.  In Russia it is 85%, Bulgaria 80.9%, former Yugoslavia 78.8%, Romania 78.2%.  Particularly low rates are in Great Britain and Ireland 7.9%, Belgium 17.1%.  Belgium though has the highest proportion of workers in industry and mining with 48.9%, Great Britain and Northern Ireland 48%, Switzerland 44.9% and Germany 40.6%

People - The Wealth of Europe

255m workers represent a fantastic wealth for Europe and an immense force, provided they are deployed productively.  For many countries recently, though, it has proved difficult to provide its inhabitants with bread and work, and the effects of the war and blockade are still being felt.  In 1940 there were over 4.2m unemployed in 15 countries compared with 2.5m the following year.  These figures include Great Britain and Northern Ireland, but not Russia and the smaller nations.  In many nations the figures refer only to the unemployed people receiving state benefits and also many unemployed people are not counted because they avoid registration, so the real figure in Europe at the moment is actually far higher.

As we all know, Germany has no unemployment now and the present employment position is not governed by figures for the unemployed, instead by the number of job vacancies counted at each month end.  Since the start of 1941 this figure ranges between 1.5-1.7m, at the end of the year it was 1.56m despite the employment of 1.5m prisoners of war and the deployment of 2.14m foreign workers in Germany.  The figure for required workers is actually higher than those cited above and it has increased considerably in the last few weeks.  It is completely wrong for our enemies, particularly England, to describe Germany’s employment situation as catastrophic, because we lack the workforce for the economic waging of war.  The figures just show that the economy is stretched very thin and is ready for the total war, right down to the smallest factory unit.  Unlike England and America, we are pleased to do without industrial worker reserves amounting to several hundred thousands of unemployed, which might suit the liberalistic and pluralistic systems of our enemies - not so in national socialistic Germany.

Unemployment in the last century forced millions of Europeans to turn their backs on Europe and to seek a future for their families outside Europe.  The European economy lost valuable people.  Between 1830 and 1910, 4.77m Germans emigrated to the USA.  In one year before the war between 1 July and 30 June 1913 1.06m emigrated from Europe to North America; 0.26m from Italy, 0.25m from Austria-Hungary, 34,000 from Germany.  Emigration figures to Canada and South America were 0.13m from Italy, 36,000 from Austria-Hungary and 0.23m from Spain.

The emigrations are quite unrelated to the internal worker emigrations within the same country, as we have seen for centuries in most European nations.  Think of the craft journeymen of earlier times, of the agricultural and commercial seasonal migrant labourers, of the population shifts related to industrial locations, of the influxes and outfulxes to and from areas, which in the last six months varied between 150,000 and 200,000 in Germany.  Of course, it is only the emigrations, which represent a loss of worker resource but in the new European economy there will be no more emigrations and certainly none due to insufficient employment opportunities and food problems.  After the war there will be no unemployment for those able and willing to work.

There is no doubt that it is the best for the individual worker and for society if he can find work and food near to his home.  In a familiar surrounding he can normally perform better and more productively than the person working away from his homeplace.  Each nation will have to endeavour to create sufficient employment opportunities for its members.  If these are lacking, measures are required to create new ones.

In all its efforts to further employment, each nation has to remain conscious of its duty to the European economic community to which it belongs.  This wold entail establishing a reasonable distribution of labour, which relates to the natural production conditions of each nation or working together with the economies of others nations for mutual benefit.  If sufficient work cannot be offered in one country, then it is recommended that this surplus is deployed in those countries lacking labour, thus creating a dependence on that country.

Such a system of labour exchange regulated by the state is of great benefit to all concerned.  Unemployment is a huge financial burden on the state, as they need to be supported.  Germany experienced this in 1933 when billions of reichsmark were required for supplying those not being productive.  The political danger though is far greater from this army of unemployed, who lose their belief in themselves, their country and thus become a danger to the state.  If they go and find useful work in other nations, the mother country saves a lot of expense, the worker feels he is a valuable member of the community and he maintains a sense of family.  Later he can return to his home accustomed to work and ready for it.  He has increased his knowledge and vocational experience, gained from living elsewhere and thus can be fully employed on his return.  The majority of workers away from their home country have left their family and dependents behind who depend on the savings of the breadwinner.  He sends back what he saved and when he returns he brings more which benefits his home economy.  The following figures show the financial importance of saved income:

In 1940 foreign workers in Germany had saved RM 120m and transferred it home via the German clearing system or by post office account.  In 1941 the figure was RM 382m.  RM 286m was sent to Italy, RM 64m to Slovakia, RM 34m to Belgium, RM 26m to Denmark.  There are also those who send no money back to their families or who are single.  Sometimes savings are stolen by border gangs from those travelling home.  Single people tend to take money home when they travel back.  Between 1940 and 1941 one can reckon at least half a billion reichsmark flowing back to other nations.  Also it means for the home country that no support payments have to be made to those left behind as well as receiving the benefit of large amounts of foreign currency.

For decades Germany has provided workers from other European nations with sources of income - the number of jobs depending on what the economy could absorb.  In the 1890’s we had 50,000 foreign agricultural and by the world war we had 0.43m.  In our manufacturing, construction and mining industries in 1907 we had about 0.45m.  By World War I the total figure was 1m.  The collapse of our economy naturally meant a big reduction in these numbers.  Millions of our own workers could not get work.  In 1932 the figure stood at 0.14m foreigners of which 0.1m were employed in industry.  These were people who had lived in Germany for years, were of German origin or were married to German people.

After 1933 the German economy grew stronger and unemployment disappeared meaning each year more and more foreigners could be employed.  By the time of this war, half a million were employed here, half in agriculture and half in industry and commerce.  Employment of foreigners grew even quicker as the war put pressure on the economy and also took millions of our men to the war-front.  By April 1941 there were 1.5m foreign workers and by September a poll revealed about 2.14m, of which 0.47m were women.  Every nation of Europe is represented and in the winter months a large number of them returned home.  Despite this, in January 1942 figures showed an increase in the number of foreigners employed in agriculture.  At the end of November 1941 the 100,00th French worker was registered here, by mid-January the 250,000th Belgian.  The first movements of Spanish workers began in December when we also agreed with the Romanian government to take over 16,000 workers.

Of the 2.14m foreign workers, 1.08m (50.7%) were in commercial businesses, 0.95m (44.8%) in agriculture or forestry.  The other 50,000 (2%) were in commercial rôles or the domestic economy.  The importance and the influence of these workers can be judged by the fact that in September 1941, 8.5 out of every 100 workers on average were foreign.  Men represented 10.9 and women 4.7 out of every 100 of their sex.  1.8% of manual labourers, 23.2% of help workers and again 23.2% of female workers employed in agriculture were foreign.

The high numbers recorded today here are unusual and are due to the state of war.  Those men fighting at the front today by far exceed those employed here from other countries.  Our men are in action from the North Cape to the deserts of Africa, from the Atlantic over to Russia.  Our airplanes are all over Europe, Africa, the Mediterranean and the Atlantic and our naval forces are active 1,000’s of miles from home.  You can see that such a military force will require a huge amount of weapons, ammunition and war equipment to be produced and maintained by millions of additional workers.  Germany does not just supply its own army with weapons, it also supplies its allies with a large array of war-related products, it supplies coal, food, machines and keeps a sensible trade balance for the importation of goods needed for the war.  Germany can, therefore, claim that it is not fighting for itself but indeed for all of Europe, and so it is correct that Europe contributes additional numbers of workers and that foreign workers employed here remain conscious of their common duty.

Worker Exchange on the Basis of Inter-State Agreement

After the war Germany’s need for foreign workers will get less, but we will still have the responsibility for ensuring that foreigners can find work and food here.  Other European nations will want to see that their people find work elsewhere in Europe, therefore a large-scale European worker exchange will ensure that no resources are lost from this continent.

Such an exchange will only have a beneficial effect if it is introduced in an orderly way.  People are more important than economic goods and therefore it is essential that the exchange of workers be regulated by agreements between the responsible government offices.  The’guest’ nation has to ensure that the applicants are placed in appropriate positions and do not stay beyond the agreed time.  The ‘host’ nation must ensure that the workers are employed and rewarded, as arranged, and that accommodation, care, holidays and travel home are provided.  Guest nations can turn to the offices of the host nation if difficulties arise.  Germany has made a number of agreements with friendly nations regarding the reception of workers e.g. Bulgaria, Italy, Croatia. Romania, Slovakia, Spain and Hungary.  Due to possible differences between the participating nations, there must be some common principles in the agreements in the interest of all nations of the European economy.

It is important for each applicant to receive clear information about the conditions of work in another country so he does not feel he has been given false promises, but it is not easy to avoid some misunderstandings arising.  Language differences, vocational training, working methods and job description, wrong workers’ papers can all contribute to the unclear picture of an apprentice’s skills.  Very few nations have journeymen letters, references and workers’ books etc.

In Germany there is the practice of worker agreements, which are used in agriculture and commerce and form a large part of the general agreements formed with other nations.  The working conditions are clearly outlined in both countries’ languages, citing the agreed wage, additional payments, separation payments, hours of work, the type and cost of accommodation and care, holiday, travel home etc.  What normally happens is that the guest nation pays the costs up to the border and the employer the costs to destination from there and vice-versa.

Here an employer has to apply to an employment office to take on foreign workers and the wages offered are checked against existing agreements.  The supply of accommodation and care are also checked.  If all is correct, the forms are sent to the Labour Ministry.  The worker receives a copy of the agreement or the group leader for a group application.  Every worker gets a form in his own language, which contains the most important conditions of the agreement and other details about his stay in Germany.

The worker must be under no pressure from either the guest or host nation and must be able to make a voluntary application so that he can perform well in a foreign country.  Otherwise he would be apprehensive in the new surroundings and try to return home quickly.  No one would gain if he was disinclined to work or broke an agreement.

Principles of Worker Exchanges

A foreign worker obviously enjoys the usual protection of life and health.  He must receive care if he has an accident or becomes ill and it is essential that he have the same rights under social insurance as those in his homeland.

Germany has signed special agreements for social insurance with a number of European nations.  In one provision concerning pension insurance, workers will receive a pension in their mother country covering the time when work was performed in Germany.  There is another provision for accident insurance where the foreign worker who has an accident in Germany receives the full benefits from Germany even after his return home.  The same principle applies to agreements with other nations concerning health insurance so the family left behind receives payments from the German state.  

It is important to set out in advance the contract period of employment and it should not be too short, as workers need time to settle down.  The opposite also applies otherwise relations to home become stretched and the workers get too settled there.

Germany originally set the contract period at six months but it was too short, as many foreign workers did not want to commit themselves in their first stay.  When they realised that the provisions were good here and work appealed to them, the contract period could be extended.

An important part of the agreements concerns the control of wage transfers, because the worker and his family depend very much on regular and punctual transfer amounts, as do the host and guest nation.  The transfer amount varies according to how much has been saved and the relative currency values.  Some countries set no limits, others set certain maximum amounts but for the worker it is important that it is carried out as easily as possible.  Where the worker is not familiar with the laws, it is best if the employer takes charge and lets the wage department arrange the transfer.  The guest nation should provide the family at home with advances until the first transfer is received or the host employer should give an advance wage, which can be transferred immediately.

Concerning accommodation and care, Germany has arranged community quarters in which the members of individual nations are housed.  They are hygienic and clean and comfortable so it feels like home and the workers can adjust to the move from home.  It is important that the same nationality lives together enabling them to be looked after in surroundings that are familiar.  Some countries also send additional food and luxury items, which up to a limit, can be imported without duty e.g. spaghetti and Chianti from Italy or ham from Hungary.

It will not always be possible to provide accommodation; for example, it is not worthwhile for a small company to construct communal quarters or if work is being given to an individual.  When accommodation is provided it should be reasonably priced and suitable and not left to the workers to arrange.  If we send any workers out to work in another country, we firstly require proof that accommodation and care are provided.  
Care for the workers, though, should actually start from the point of entry into the country where they are then grouped according to their destination and should only come to an end on departure.  If a worker should die in the host country, then family members should be informed quickly and the burial arranged.  If the body is to be transported home, then the costs should be borne by the employer and/or the state.

Care should also be of a spiritual and cultural nature e.g. by arranging shows, films and lectures in their mother tongue; factory excursions for relaxation should be offered and the provision of newspapers etc. either printed locally or at home.

In Germany, all foreign workers in commercial and industrial sectors are looked after by the German Workers’ Front, those in the agricultural sector by the Reich’s Food Committee.  The former with its slogan “Power through Happiness” has, in conjunction with other official bodies, effectively managed the process of employing large numbers of foreign workers despite many problems that are bound to arise.  Sometimes when very large numbers of workers are involved, the guest nation can send carers to the host one to look after their compatriots e.g. Italy, Hungary, Slovakia and Spain have used this service in close co-operation with our official bodies.

Adaptation of the Organisation for Labour Deployment

Worker exchanges can be made easier if each country’s organisation for Labour Deployment is run along similar lines.  State bodies have organised labour deployment in Germany for years and it was greatly missed during the world war.  Immediately after it, state administration bodies were formed and now there are 23 regional labour offices under the Reich’s Labour Ministry and beneath that there are 468 labour offices with 13,000 other offices covering all occupied areas.  The authorities even marched with the troops in Russia, including 140 German officials.

Thanks to the highly organised administration system, we could convert into a war economy without hitches and meet the huge demands made.  There is universal belief that labour deployment has to be organised centrally in Germany.  This happens in other countries, such as Holland where there are 31 local labour offices and 114 related offices.  Since October 1940 state offices have taken over from local labour offices, but there is till no ministerial control in this area.  Similar organisations are to be found in Belgium, Spain, Sweden and Slovakia.  Bulgaria and Finland are starting to create their own, as in England during this war.

It is also interesting to note that the material employment right has shown a tendency recently in Europe to unify, particularly regarding statute labour and rules that limit the free exchange of jobs.  In 1938 we started and then a year later fully introduced statute labour, which applied to all inhabitants of the Reich making it mandatory to offer their services.  A similar piece of legislation came into force in Italy in May 1940 relating to land organisation, which meant that all men between 14 and 70 and women between 14 and 60 could be called up to maintain “the defence and force” of the nation.  Holland introduced statute labour in February 1941, and Sweden did in 1940, empowering the government to call up people between 16 and 69.  Switzerland in 1940 introduced the duty to work in the countryside and in July 1941 to work in construction.  Bulgaria, Romania and finally France in 1941 introduced rules that forced workers to work in the countryside in order to ensure agricultural output.  Finland and Slovakia have statute labour laws and England, who saw fit to criticise our legislation at the start of the war, introduced comprehensive statute labour in December 1941 for all those between 16 and 51.

Most of these laws are borne out of the necessities of war and are not ideal for peacetime.  

One hopes and wishes that the drive towards a centrally controlled employment organisation will continue in Europe and that progress continues to be made in unifying the material employment right.  Worker exchange would be made a lot easier as a result.

Employer Action and Order Switching

Two other forms of inter-state worker exchange have to be mentioned: one is the action of employers and companies.  This means that a foreign employer gets actively involved together with its entire workforce by taking responsibility for a particular order from a local customer and concludes a contract concerning work and performance.  The order is then fulfilled using workers and machines.  Foreign workers are then more inclined to take up work individually in other countries and join forces with their compatriots.  Employer action can bring about action by foreign workers.  Of course, the foreign worker in these cases is subject to the local work and social laws and should earn the same as the local workers.  Employer and company action is commonplace in Germany and foreign entrepreneurs in construction and assembly work are active here.

Finally we should point out the possibility of unburdening the local economy by switching orders to other countries which also ensures that unused capacities are utilised productively.  The guiding principle, though, is that production moves to wherever the required workforce is available, as well as the requisite economic and currency related factors.  In many European nations, particularly, in the occupied areas, hundreds of thousands of workers are active on behalf of the German economy.

To conclude, I predict many years of peaceful reconstruction work and economic co-operation after the victorious end to this war.  Inter-state labour deployment will bring the people of Europe closer together.  The active human, the European worker will have a decisive role to play in solving the difficulties facing the European economic community.  In December 1941 Adolf Hitler used these words addressing munitions workers, “The German workforce is our gold and our capital with which I will conquer the world!”  We can modify these words to relate to the European economic community by saying: Europe’s workers are Europe’s capital and with it all continents will be defeated.

THE END OF BEISIEGEL’S essay.

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