Between Autonomy and the Reich Administration Economic Department of the Reich Protector’s Office (1939–1942)
Abstract
50
Full text
Between Autonomy and the Reich Administration Economic Department of the Reich Protector’s Office (1939–1942) barbora Štolleová KEYWORDS: Protectorate of Bohemia and Moravia— Administration— Economy— World War II Although the administrative system of the Protectorate of Bohemia and Moravia represents atheme that has been repeatedly treated by historians, in view of the complexity of the system and its multi-layered mechanisms changeable in time, it still opens up many research possibilities.1 This applies, inter alia, to the economic administration which has remained aside issue in the studies published to date and dedicated to administrative developments during the occupation. Certain exceptions in this sense are works devoted to selected economic aspects, such as the Aryan isation mechanism,2 agricultural administration3 or land and settlement policy.4 In the recent years works that have helped to elucidate the economic mechanism in the Bohemian Lands are those by Jaromír Balcar and Jaroslav Kučera, analysing “Wirtschftslen1 This study was produced as part of the Czech Science Foundation (GAČR) grant project no. P 410/ 14-03997P “Bankovní, obchodní aprůmyslové velkopodnikání vProtektorátu Čechy aMorava. Institucionální amajetkoprávní změna”[Banking, industrial and commercial large scale business in the Protectorate of Bohemia and Moravia. Institutional and proprietary change] solved at the Charles University. 2 Among others Drahomír Jančík— Eduard Kubů, “Arizace” aarizátoři. Drobný astřední židovský majetek vúvěrech Kreditanstalt der Deutschen (1939–45), Prague 2005, pp.13–34; Drahomír Jančík— Eduard Kubů – Jiří Šouša, Arisierungsgewinnler. Die Rolle der deutschen Banken bei der “Arisierung” und Konfiskation jüdischer Vermögen im Protektorat Böhmen und Mähren (1939–1945), Studien zur Sozialund Wirtschaftsgeschichte Ostmiteleuropas 21, Wiesbaden 2011. 3 Barbora Štolleová, Pod kuratelou Německé říše. Zemědělství Protektorátu Čechy aMorava, Prague 2014. 4 Jaroslav Michl, Nacistické zásahy do české pozemkové držby za okupace, Právněhistorické studie 13, 1967, pp.229–258; lately especially Miloš Hořejš, Zábory české půdy. ajejí následná germanizace, Deutsche Ansiedlungsgesellschaft na Mělnicku (1942–1945). In: Jan Hájek— Drahomír Jančík— Eduard Kubů (eds.), Ohospodářskou národní državu. Úvahy očeském aněmeckém hospodářském nacionalismu včeských zemích. Acta Universitatis Carolinae— Philosophica et historica 1, 2005, Studia historica LIX, Prague 2009, pp.247–263. OPEN ACCESS
barbOra ŠtOllEOvá 51 kung” from the Nazi occupation to the transition to planned economy.5 Balcar’s work “Panzer für Hitler, Traktoren für Stalin”, published in 2014, also presents anumber of noteworthy theses regarding the administrative aspects, in particular in the context of corporate governance of the profiled large-scale enterprises.6 The aim of this study is to expound the creation and functioning of the Economic Department of the Reich Protector’s Office (hereinafter as RPO) as abody playing the dominant role in the process of formation of the Protectorate economic policy, and to shed light on its penetration into the autonomous occupation administration that took place as part of Heydrich’s reform of public administration. The focus of attention is on the status of the Economic Department of the RPO on the boundary between the Reich German administration and the Protectorate administration, its organisational and personnel structure, competences, and financing mechanism. One of the prerequisites and points of departure for asuccessful Nazi policy in the Protectorate economy was the creation of an administrative system empowering the German occupation force through systematic implementation and control over concrete measures in the economic sphere. Like other Protectorate affairs, control of the economic sector by the Nazis was determined by the Protectorate autonomy, aformal concentration of economic and political decisions within the Protectorate. The autonomous status prevented the occupation force from proceeding in the same way as it had done in the case of the border regions of Bohemia and Moravia which were incorporated in their entirety after the Munich Agreement into the Reich system of administration.7 Interventions in the economic mechanism of the Bohemian Lands were made in an early phase of the occupation. On the central level the changes tended to concentrate the decisive competences and to shape the economic policy in the hands of the occupation apparatus. The top echelons of the Reich authorities strove to assume full control over the management of the Protectorate economic affairs, including the ministries (Reichswirtschaftsministerium, Reichsministerium für Ernährung und Landwirtschaft, Reichsfinanzministerium), Commissioner for the Four-Year Plan8 and NSDAP structures.9 Simultaneously, some economic mechanisms were reorgan5 Jaromír Balcar— Jaroslav Kučera, Von der Rüstkammer des Reiches zum Maschinenwerk des Sozialismus. Wirtschaftslenkung in Böhmen und Mähren 1938 bis 1953, München 2013. 6 Jaromír Balcar, Panzer für Hitler— Traktoren für Stalin. Groβunternehmen in Böhmen und Mähren 1938–1950, München 2014. 7 Stanislav Biman, Vojenské obsazení území připojených kNěmecku podle mnichovské dohody aobdobí jeho vojenské správy (1.– 20. října 1938). In: Zdeněk Radvanovský (ed.), Historie okupovaného pohraničí 1938–1945, Bd. 1, Ústí nad Labem 1998, p.105; Volker Zimmermann, Sudetští Němci vnacistickém státě. Politika análada vŘíšské župě Sudety (1938–1945), Prague 2001, pp.165–166. 8 Richard J. Overy, Goering. “The iron man”, London 1984, pp.48–75; the scheme of Goering’s office see p.58; see also Avram Barkai, Das Wirtschaftssystem des Nationalsozialismus. Ideologie, Theorie, Politik 1933–1945, Frankfurt am Main 1988, pp.211–213. 9 Further to the economic policy of the SS within the Protectorate of Bohemia and Moravia see Hermann Kaienburg, Die Wirtschaft der SS, Berlin 2003; Isabel Heinemann, “Rasse, OPEN ACCESS
52 WISOHIM/ESHP 24 ised and internal changes were made within the autonomous administrative system. This was neither aone-shot nor astraightforward process as the methods for the management of the Protectorate economy were modified in the course of time and were adapted to the new circumstances. An instrumental role was doubtless played by the course of the war and the war needs of Nazi Germany, non-economic factors (Germanisation), and the actual milieu of the occupied territory. In asense this was aceaseless search or generation at agiven time, and in the given circumstances the best, and from the perspective of the occupation interests, the most effective model. Measures adopted during the military administration aimed to establish occupation control over the Protectorate economy.10 Economic departments [Wirtschaftsabteilung] were created at offices of the heads of civil administration [Chef der Zivilverwaltung]. They operated in cooperation with military and police forces and assured smooth economic operation in collaboration with the lower occupation administration levels (Oberlandräte)11 through the autonomous Protectorate authorities. The Economic Department in the office of the head of civil administration Konrad Henlein in Prague was structured into three sections: Central Section [Zentralreferat], Raw Material Section [Rohstoffreferat], and Energy Section [Energiereferat], and reported to Ministerial Counsellor Plodek.12 At the same time, Reich ministries and other central authorities posted to the Protectorate advisers and experts who were to act as upholders of Reich interests. This is documented by amemorandum from the General Commissioner for the Economy of 16 March 1939 demanding that the heads of the civil administration offices set up special expert commissions staffed by central Reich office workers.13 Afew days later German liaison officers, so-called commissioners/plenipotentiaries [Beaufratge], were appointed in the central Protectorate institutions. The leading ones in the economic sphere were the Commissioner of the Reich Ministry of Economy and Commissioner for the Four-Year Plan [Beaufragte des Reichswirtschaftsministeriums und des Vierjahresplanes], Commissioner of the Reich Minister of Finance [Beaufragte des Reichsministers der Finanzen], Commissioner of the Reich Bank [Beaufragte der Reichsbank], and finally, Commissioner of Siedlung, deutsches Blut”. Das Rasseund Siedlungshauptamt der SS und die rassenpolitische Neuordnung Europas, Göttingen 2003. 10 Further to the characteristics of the economic administration in the period of so called military administration (15th March 1939— 15th April 1939) see Stanislav Biman— Jaroslav Vrbata, “Protektorát Čechy aMorava” vobdobí vojenské správy. Dokumenty zčinnosti civilně správních orgánů říšskoněmecké armády ve dnech (13.) 15. března— 15. dubna 1939, Odboj arevoluce. zprávy 7, 1969, no. 2, pp.156–241 a(no. 3), pp.172–229; Břetislav Tvarůžek, Okupace Čech aMoravy avojenská správa (15. březen— 15. duben 1939), Historie avojenství 41, 1992, no. 3, pp.30–65; Pavel Maršálek, Protektorát Čechy aMorava, Státoprávní apolitické aspekty nacistického okupačního režimu včeských zemích 1939–1945, Prague 2002, pp.46–47. 11 P. Maršálek, Protektorát Čechy aMorava, p.46. 12 S. Biman— J. Vrbata, “Protektorát Čechy aMorava”, pp.181. 13 Národní archiv Praha [National Archive Prague, hereinafter as NA Prague], fond (hereinafter as f.) Úřad říšského protektora (hereinafter as ÚŘP), box (hereinafter as. b.) 66, Z— Verwaltung, Schreiben des Generalbevollmächtigtes für die Wirtschaft vom 16. 3. 1939. OPEN ACCESS
barbOra ŠtOllEOvá 53 the Reich Ministry of Food and Agriculture [Beaufragte des Reichsministeriums für Ernährung und Landwirtschaft].14 By the end of atransition period of military administration the administrative system in the Protectorate, not excepting the economy, largely evolved in line with the dual-track principle. Next to the Protectorate an extensive German occupation apparatus was built and not only did it directly control matters subject to the Reich administration and Protectorate Germans, but also it controlled and supervised the autonomous Protectorate authorities and as an instrument of the occupation policy it focused on achieving its main goals.15 The supreme authority of the German occupation administration in the Protectorate as well as the highest control authority for the economic sphere was the Reich Protector’s Office [Amt des Reichsprotektors]. Outwardly, this authority acted unanimously and formally concentrated all the tasks and competences of the occupation administration in the hands of asingle person, the Reich Protector, who reported directly to Hitler. On the Protectorate level the dual-track system secured the superior position of the Protector’s office in respect of the autonomous Protectorate authorities, and, at the same time, it delimited its position in respect of the Reich authorities. The Berlin ministries and other Reich bodies could formally intervene in the governance of the Protectorate, issuing legal provisions and adopting organisational measures, but only by agreement with the Reich Protector, through his office or through elements subordinated to him.16 Initiatives of the central Reich authorities which violated these principles were rejected. Certain exceptions represented activities of NSDAP party officials which assumed the right, both on the Reich and the Protectorate level, by dint of their political functions, to control concrete and from the political viewpoint absolutely vital processes (Germanisation policy). The structure of the Reich Protector’s Office was afollow-up to the organisational structures from the time of military administration— the economic departments in the heads of civil administration offices and the institute of the Reich commissioners/plenipotentiaries. Independent groups [Gruppen] were created for individual admini strative areas. They supervised the autonomous Protectorate bodies and at length took their own initiatives protecting the Reich interests.17 In the economic 14 NA Prague, f. Úřad říšského protektora— dodatky I(hereinafter as ÚŘP— supplementsI), b. 27, sign I., Organizace civilní správy vprotektorátě (strojopis, nedat.); NA Prague, f. ÚŘP, b. 66, Z— Verwaltung, Verteilung der Geschäftsräume mit sofortiger Wirkung vom 22. 3. 1939. 15 Further to the general characteristics of so called dual track system of administration in the Protectorate of Bohemia and Moravia see Stanislav Šisler, Příspěvek kvývoji aorganisaci okupační správy včeských zemích vletech 1939–1945. In: Sborník archivních prací 13, 1963, no. 2, pp.53–56 app.61–62; P. Maršálek, Protektorát Čechy aMorava, pp.47–64. 16 The state secretary of the Ministry of inferior instructed all Reichsgerman central offices already in the period of miliary administration. Bundesarchiv Berlin (hereinafter as BA Berlin), f. R 1501— Reichsministerium des Innern (hereinafter as R 1501— RI ), sign. 127 083, Schreiben des Reichsministers des Innern an die obersten Reichsbehörden vom 31. 3. 1939. 17 The structure of the office was permanently changing during the first months of occupation. NA Prague, f. ÚŘP, b. 1080, sign. II, set of plans for the department II of RPO; BA BerOPEN ACCESS
54 WISOHIM/ESHP 24 sphere the groups “Commercial Activities” [Gewerbliche Wirtschaft], “Food and Agriculture” [Ernährung und Landwirtschaft], “Forestry and Game Management” [Forstund Jagdwesen], and “Pricing” [Preisbildung] conducted their activities. They were typically formed as afollow-up to the original supervisory structures and in fact, their formation involved atransformation of the commissioners’ departments. For example, Master Forester Walter Hühn, who led at the time of military administration in the Protectorate ateam of commissioner of the Reich Forestry Authority [Reichsforstamt] and headed after the creation of the RPO the group for “Forestry and Game Management” [Forstund Jagdwesen]; similarly, official of the Reich Ministry of Food and Agriculture Heinrich Steiger, who was at the time of military administration part of ateam of commissioner of the Berlin ministry attached to the Protectorate Ministry of Agriculture, and ended in the newly formed RPO group “Food and Agriculture” [Ernährung und Landwirtschaft] as the group leader’s permanent deputy. Evidently the formation of the groups as the principal organisational elements of the RPO was not systematic in the first months and based on apredefined concept; rather, it reflected the current needs. Acase in point is the formation of anarrowly defined group “Road Construction” [Strassenwesen] in the context of the adoption of aprogramme for rapid road construction [Strassenbausofortprogramme].18 Broad competences in the economic sector within the RPO were vested in the first months of its existence in aspecial group “Wehrwirtschaft” (so-called “W-Gruppe”) under the direction of senior government councillor Schumacher, which primarily studied the possibilities for unlocking the economic potential of the Protectorate for the needs of the Reich.19 Independent sections were created in the sections for “Trades and industry” [Gewerbewirtschaft], “Forestry and Woodworking Industry” [Forst und Holzwirtschaft], “Conscript Labour” [Arbeitseinsatz] and “Food Economy” [Ernährungswirtschaft]. Despite the importance attached to “W-Gruppe” of the RPO after the first months its operations were of little consequence. As aresult of bitter competence conflicts with other economic groups of the RPO “W-Gruppe” was dissolved in the summer of 1939. Its agenda and staff were transferred smoothly to other economic groups of the RPO.20 lin, f. R 1501— RI, sign. 127 083, Personelle Besetzung der Behörde des Reichsprotektors am 6. 4. 1939. 18 NA Prague, f. ÚŘP, b. 17, sign. III, set of documents concerning Strassenbausofortprogramme. 19 The concept of “Wehrwirtschaft” as “the defense-based economy, capable of generating the resources necessary for the conduct of total war” developed in Germany in the 1920s. To the concept see Richard J. Overy, Hitler’s War Plans and the Economy. In: Richard J. Overy, War and Economy in the Third Reich, Oxford 2002, p.178. 20 Further to the activities and structure of the “W-Gruppe” within RPO see NA Prague, f.ÚŘP, b. 123, sign. 416, Schreiben des Generalbevollmächtigtes für die Wirtschaft an den Herrn Reichsminister der Finanzen vom 24. 5. 1939; NA Prague, f. Úřad říšského protektora— dodatky II (hereinafter as ÚŘP— supplements II ), b. 30, personnel file of Dr. Martin, Schreiben der Abteilung VI an die Zentralverwaltung vom 31. 1. 1944; NA Prague, f. ÚŘP, b. 1080, Vorläufiger Geschäftsverteilungsplan der Gruppe Wehrwirtschaft des Reichsprotektors in Böhmen und Mähren (undated). OPEN ACCESS
barbOra ŠtOllEOvá 55 Afundamental reorganisation of the RPO began in the summer of 1939. The existing constituents were systematised and this had asignificant impact on the administration of economic affairs. In addition to “central administration” and “representation of foreign authority” atotal of four departments were established within the central occupation authority: 1) administration, finance, education; 2) economy and finance; 3) transport; 4) cultural policy.21 The economic agenda was now concentrated in the second department under the name “Economy and Finance” [Wirtschaft und Finanz], and the formally “unified” control of the Protectorate economic affairs remained in place in this sense until Heydrich’s reform of public administration. The establishment of the department was officially started with amemorandum of 1 August 1939.22 Walter Bertsch was appointed as its head.23 The structure of groups subdivided into sections was preserved in the new economic department. In the autumn of 1940 there were six groups: II/1 “Economy” [Wirtschaft], II/2 “Food and Agriculture” [Ernährung und Landwirtschaft], II/3 “Forestry, Woodworking Industry and Game Management” [Forstund Holzwirtschaft und Jagdwesen], II/4 “Labour and Social Affairs” [Arbeitsund Sozialangelegenheiten], II/5 “Pricing” [Preisbildung], II/6 “Reich Bank” [Reichsbank].24 Anew group, II/7 “Finance” [Finanz], was added to these groups later. According to an extant scheme from 1942, the agenda of the seven departments was elaborated into more than thirty sections.25 Group II/1 “Economy” [Wirtschaft]26, which was competent for abroad area of industry and trades, grew under the direction of senior government councillor Erich von Wedelstädt before 1940 to 6 sections. First Department (head: Erich von Wedelstädt) administered general economic policy affairs, including the groups’ personnel and organisational matters. Second Department (head: Decken, later Arnold Freiherr von Vietinghoff) pursued the agenda of industry, raw material supplies and market issues, and third Department under the direction of senior government councillor Friedrich von Hülsen concentrated on metallurgy, coal economy and energy. Acentre of gravity in the groups’ activities evidently consisted in aspecial Department “Entjudung” within the competence of August Hoffmann (originally Stier) after the adoption of adirective on Jewish property in June 1939. The department pursuing 21 The structure of RPO was officially announced on 18 October 1940. Verordnungsblatt des Reichsprotektors in Böhmen und Mähren 1940, pp.425–426. 22 NA Prague, f. ÚŘP, b. 1080, Schreiben des Reichsprotektors in Böhmen und Mähren an allen Abteilungen und Gruppen des Reichsprotektors vom 1. 8. 1939; NA Prague, f. ÚŘP— Supplements I, b. 47, Runderlaß des Reichsprotektors in Böhmen und Mähren vom 1. 8. 1939. 23 Further to Walther Bertsch see Lukáš Guttek, Činnost apostavení Waltera Bertsche vhospodářství Protektorátu Čechy aMorava, bachelor’s work, Faculty of Arts at the Charles University, Prague 2007. 24 NA Prague, f. ÚŘP, b. 307, sign. I— 1d 6205, Gliederung der Abteilung II (Anlage zum RdErl. vom 3. 9. 1940). 25 NA Prague, f. ÚŘP, b. 1080, set of schemes of the department II of RPO; NA Prague, f. ÚŘP, b. 306, sign. I1a 1200— 11, Gliederungsplan des Reichsprotektors nach dem Stande vom 1. 5. 1942. 26 Originally the group was called “Gewerbliche Wirtschaft”. OPEN ACCESS
56 WISOHIM/ESHP 24 an extensive Aryanisation agenda lay at the point of intersection of anumber of the Aryanisation machinery of other authorities and employed the most officials in the group— in 1940 it was 18 persons. Specific foreign trade affairs, including foreign exchange, insurance and banking, were originally concentrated in afifth Department (head: Dr G. Hofman), and later partly detached to anewly formed group “Finance” [Finanz]. Aseparate department headed by Ritterhausen administered the agenda of Reich public orders (Wehrmacht, Reichsbahn, Reichswerke Hermann Göring etc.). It operated in close cooperation with “Central Office for Public Procurement” [Zentralstelle für öffentliche Anträge] established as the Reich Protector’s special body completely outside the autonomous system of controlled economy.27 The organisational evolution of the second group II/2 of the RPO Economic Department RPO— “Food and Agriculture” [Ernährung und Landwirtschaft]— in the autumn of 1939 was underpinned by the building of acontrolled economy consisting in elimination of the free market and an increasing number of interventions in the production sphere (setting supply obligations, production contingency).28 The group “Food and Agriculture” was originally structured into five sections: “Administration”, “Production”, “Food Economy including War Economy”, “Import and Export”, “Land Matters”.29 Aseparate department was created later for Aryanisation of Food economy enterprises and was authorised to appoint treuhänders and supervise companies managed by them, plus aseparate department for water management and care for the land.30 It is symptomatic that the administration of forestry and woodworking industry and game management was separate in the occupation line from other affairs involving agricultural and food economy and aspecial group was created for it (“Forstund Holzwirtschaft und Jagdwesen”, II/3 RPO). In this sense the organisation of the central occupation authority adopted the Reich model— while group II/2 RPO had its opposite number in the Berlin Ministry of Food and Agriculture [Reichsministerium für Ernährung und Landwirtschaft], group II/3 “Forstund Holzwirtschaft 27 Further to the position of “Zentralstelle” within the administration system of the Protectorate of Bohemia and Moravia see NA Prague, f. ÚŘP, b. 17, set of documents concerning the public orders; see also Marie Durmanová, Řízené hospodářství aspráva Ústředního svazu průmyslu za nacistické okupace, Sborník archivních prací 16, 1966, no. 2, pp.366–396. 28 Further to the organizational structure and personnel development of the II/2 RPO see BA Berlin, f. R 1501— RI, sign. 127 083, Personelle Besetzung der Behörde des Reichsprotektors am 6. 4. 1939; NA Prague, f. ÚŘP, b. 1080, Geschäftsvereilungsplan der Gruppe Ernährung und Landwirtschaft (undated ); NA Prague, f. Úřad říšského protektora— Archiv ministerstva vnitra 114 ( hereinafter as ÚŘP— AMV 114), b. 174, sign. 114— 176/4— 5, scheme of the group VIII., fol. 75–76; NA Prague, f. ÚŘP, b. 1080, scheme of the group Ernährung und Landwirtschaft (undated). 29 BA Berlin, f. R 30— Reichsprotektor in Böhmen und Mähren/Deutsches Staatsministerium (hereinafter as R 30— RP), sign. 9, Schreiben des Reichsprotektors Böhmen und Mähren (Gruppe VIII) vom 3. 11. 1939 an die Gruppe Z— Kriegsgeschäftsverteilungsplan und U. K.— Stellung; BA Berlin, f. R 30— RP, sign. 9, Vorläufiger Geschäftsverteilungsplan der Abteilung II Gruppe VIII— Ernährung und Landwirtschaft (undated). 30 NA Prague, f. ÚŘP, b. 1080, Geschäftsverteilungsplan der Abteilung II. Gruppe II/2 vom 25. 11. 1940. OPEN ACCESS
barbOra ŠtOllEOvá 57 und Jagdwesen”accommodated to the office of the Reich Master Forester [Reichsforstamt]. The direction of group II/2 “Food and Agriculture” passed from Henlein’s representative and prominent exponent of the Sudeten Reichsnährstand Rudolf Raschka in the summer of 1939 to agricultural engineer and state commissioner in the Berlin Ministry of Food and Agriculture Theodor Gross. In his post he was represented for along time by aBerlin ministry official, Heinrich Steiger. Key Department “Food Economy”, in which almost one half of the personnel of the group worked (24 persons), was entrusted to aspecialist in the management of the agricultural market, senior agricultural councillor Dr Paul Hunecke. The forestry and woodworking agenda (group II/3 RPO) was managed by Curt Francke.31 Other expert groups in the RPO economic department were in continuous development in the context of the concretisation of the distinctive features of the German occupation policy in the Protectorate and the expansion of the authority’s agenda and personnel as well. The original supervisory function was superseded by active interventions and influencing of widening spheres of economic policy. Group II/4 “Work and Social Affairs” [Arbeitsund Sozialangelegenheiten], which pursued an agenda concerning the labour market, wages policy and social insurance, reported to ministerial councillor Wilhelm Dennler and was divided in 1940 into four sections.32 Organisational evolution of Group II/5 “Preisbildung” of the RPO under the direction of Hans von Busse was taking place in close relation to the establishment of the Supreme Pricing Authority in May 1939. In the autumn of 1940 the agenda was divided into the apparatus of the group leaders (personnel), Department I(head: Kurt Huth) pursuing the agenda of pricing policy and supervision of the autonomous authorities in the field of pricing policy, Department II (head: Dr Hans Richardt) dealt with pricing regulations in the context of cartels, customs and taxation, rents, transport, and culture. Other sections dealt with the pricing policy in Food and agriculture (Department III, head: Coenen) and commercial activities (Department IV, head: Gottholf Lindemann).33 The activities of the group “Preisbildung” were typified by close collaboration across the other economic groups of the RPO (in particular II/1 and II/2) and performance of asupervisory function through acommissioner in relation to the Supreme Pricing Authority, an autonomous body positioned formally on the top of the pricing process.34 31 Curt Francke managed the group “Forstund Holzwirtschaft und Jagdwesen” within the RPO from the 3rd April 1940. He took charge from Walter Hühn, arepresentative of Reichsforstamt. NA Prague, f. ÚŘP, b. 92, Z— Pres –I, personnel file of C. Francke. 32 NA Prague, f. ÚŘP, b. 1080, Abschrift (Gliederung der Abteilung II) an allen Abteilungen und Gruppen des Reichsprotektors vom Aug. 1940. Further to the personnel development see NA Prague, f. ÚŘP, b. 87, sign. Z-Pres.I, Verzeichnis der Beamten und Angestellten der Gruppe II/4 (undated). 33 NA Prague, f. ÚŘP, b. 1080, Geschäftsverteilungsplan der Gruppe Preisbildung (undated). 34 Supreme Pricing Authority [Nejvyšší cenový úřad] was established on the basis of government order of 10 May 1939 and its field of activity was defined by the government order of 13 July 1939. Government issue no. 121 of 10 May 1939, Sbírka zákonů anařízení Protektorátu Čechy aMorava (hereinafter as Sb. z. a n. Protektorátu Čechy aMorava) OPEN ACCESS
58 WISOHIM/ESHP 24 The genesis of the sixth group in the RPO economic department went back to the period of military administration. As early as March 1939 German interests were defended in the central Protectorate bank through aspecial plenipotentiary of the Reich Bank Friedrich Müller. After the end of the military administration Müller was appointed as head of the independent RPO department, later of the group II/6 “Reich Bank” [Reichsbank], which dealt with foreign exchange and financial affairs. The key foreign exchange section was entrusted by the Reich Protector to Herbert Winkler.35 The organisation evolution of the group “Finance” [Finanz], which was the last one to be incorporated into the economic department of RPO was affected most dramatically as aresult of the abolition of the customs boundary between the Protectorate and the Reich with effect as of 1 October 1940. The territory of the Protectorate became the top financial district of Bohemia and Morava and the office of the head financial president was created in Prague. Already, in the summer before the expected change, Neurath defined his position in amemorandum to the Reich Ministry of Finance as the sole representative of Hitler and of the Reich government in the territory of the Protectorate, doubtless wishing to prevent undesirable interference on “his home turf”. Although he stated that he did not intend to exercise all the powers in the area of customs duties, consumption tax and monopolies through his office, he reserved for himself all the decision-making powers and explicitly protested against potential unauthorised interference from the Reich Ministry of Finance and its organs.36 This was evidently a“preventive” measure. Neurath concurrently announced his intention to amalgamate the personnel of the group “Finanz” [Finance] in his office with the post of the head finance president [Oberfinanzpräsident] in order to retain control over the newly established agenda.37 In this context the process of suppression and weakening of the autonomous Protectorate administration gathered momentum in favour of the occupation administration. The ceaselessly expanding agenda of the economic department of the RPO demanded an enlarged personnel apparatus. The originally narrow apparatus of some economic groups, amounting in the first months after occupation to around 10 clerks increased in time to dozens of persons. There was for example the group “Economy” [Wirtschaft], which according to the extant organisational plans counted in the au1939, pp.503–509; Government issue no. 230 of 13 July 1939 osložení, organisaci azpůsobu činnosti nejvyššího úřadu cenového, Sb. z. an. Protektorátu Čechy aMorava 1939, pp.736–737. 35 NA Prague, f. ÚŘP, b. 1080, Abschrift (Gliederung der Abteilung II) an allen Abteilungen und Gruppen des Reichsprotektors vom Aug. 1940. Further to the National Bank under the occupation see Jiří Novotný— Jiří Šouša, Die Nationalbank in den Jahren 1939–1945 und die „Arisierung“ im Protektorat Böhmen und Mähren. In: D. Ziegler (Hg.), Geld und Mitteleuropa während des Nationalsozialismus, Stuttgart 2002, pp.119–142. 36 NA Prague, f. ÚŘP, b. 1063, Der Reichsprotektor an den Herrn Reichsminister der Finanzen vom 27. 6. 1940. 37 NA Prague, f. ÚŘP, b. 1063, Der Reichsprotektor in Böhmen und Mähren an Zentralverwaltung und die Abteilung Ibis IV (und andere) vom 26.10.1940. OPEN ACCESS
barbOra ŠtOllEOvá 65 The long-planned reform was started with reorganisation of the Protectorate ministries in January 1942. The most important change in the economy was the creation of Ministry of Economy and Labour and granting it far-reaching powers. Its agenda included most of the remit of the original Ministry of Trade and some affairs within the remit of the Ministry of the Interior (private insurance; joint stock companies, limited-liability companies and cooperatives) and the Ministry of Finance (currency and financial affairs, except oversight of the National Bank for Bohemia and Moravia).60 To alesser degree the changes affected other economic ministries— Ministry of Agriculture (newly Ministry of Agriculture and Forestry) and Ministry of Finance. Competence changes among the ministries essentially endeavoured to approximate the Reich model and were brought about despite objections from the Protectorate authorities.61 Anew government was formed by the Reich Protector and then approved by Berlin.62 The core of the reform— elimination of the public dual-track administration— consisted in aprogressive merging between the occupation and the autonomous administration. The extensive agenda followed until then by the occupation authorities was transferred to competent Protectorate authorities, and the leading positions in those authorities were taken by Reich Germans according to directives and “im Auftrage des Reichs” [on orders from the Reich].63 Being the supreme occupation authority the RPO detailed to individual Protectorate ministries authorised general representatives, high-ranking German officials who performed essential functions with the assistance of alarge team of collaborators in agiven sphere of activity, frequently without the knowledge of the Protectorate ministers.64 This liquidated the autonomy of the Protectorate from the inside and the ministries were transformed into occupation authorities. In the most important of the economic ministries, the newly created Ministry of Economy and Labour, adirect link between the central occupation authority and the Prague ministry was established in January 1942 by the appointment of aReich German to the post of minister, in the case of the Ministry of Finance and Ministry of Agriculture and Forestry, the go-between was the general representative. Avanguard of the far-reaching organisational changes in the Prague Ministry of Agriculture and Forestry was the appointment of senior government councillor 60 Government regulation no. 14 of 15 January 1942, Sb. z. an. Protektorátu Čechy aMorava 1942, pp.75–80; Government regulation no. 208 of 15 June 1942, Sb. z. an. Protektorátu Čechy aMorava 1942, pp.997–1003. 61 See for example the reaction of Adolf Hrubý (Minister of Agriculture) to the government regulation no. 15/1942. NA Prague, f. ÚŘP— AMV 114, b. 19, sign. 114— 5/15, Schreiben des Ministers für Landwirtschaft an de Herrn Staatssekretär Frank vom 2. 2. 1942, fol.17–18. 62 Zpověď K. H. Franka. Podle vlastních výpovědí vdobě vazby ukrajského soudu trestního na Pankráci, Prague 1946, p.132. 63 Further to the “Reichsauftragsverwaltung” see P. Maršálek, Protektorát Čechy aMorava, pp.64–75; S. Šisler, Příspěvek kvývoji aorganisaci okupační správy, p.67. 64 The appointment of general representives was legally based on the government regulation of 4 March 1942. Government regulation no. 80 of 4 March 1942, Sb. z. an. Protektorátu Čechy aMorava 1942, pp.551–552. OPEN ACCESS
66 WISOHIM/ESHP 24 Axel Staehly as general representative of the Ministry of Agriculture.65 The Protectorate ministry was notified of the organisational changes by the Reich Protector’s memorandum of 24 April 1942. It stated an “immediate connection” [unmittelbare Verbindung] was to be established between the ministry and the central occupation authority and demanded office space for his team.66 The then head of group II/2 “Food and Agriculture” of the RPO Ernst Adolph Schmidt was appointed to the post of general representative in all the agricultural sections of the Protectorate ministry. Subsequently, the Reich Protector’s directive of 1 May 1942 posted fifteen workers of Group E+L RPO to the Prague Ministry of Agriculture and Forestry. They included ten senior officers, and five of them were senior government councillors (Heinrich Steiger, August Klingenberg, Paul Hunecke, Otto Stalmann, Josef Markes), who had until then led the group sections.67 In consequence of the separation of what was practically the entire direction of the group E+L RPO and implantation of this elite “unit” into the Protectorate Ministry of Agriculture and Forestry, the originally autonomous authority acquired the character of occupation authority and was becoming a“German” authority. Reorganisation of the Protectorate Ministry of Finance proceeded in asimilar manner. In amemorandum from the Reich Protector to Minister Josef Kalfus of 29 June 1942 the Protectorate minister was asked under the pretext of fostering “closer and more productive” collaboration between the occupation authority and the ministry to appoint senior government councillor Walter Schmeisser as general plenipotentiary for the budget and credit [Generalreferent für Haushalt und Kredit] and senior government councillor Gustav Nissen as general plenipotentiary for taxes and rates [Generalreferent für Steuern und Gebühren], and finding asuitable office for them. Another 16 workers of the RPO group “Finance” [Finanz] were transferred to the Ministry of Finance together with Schmeisser and Nissen, including government councillors Dr Heitmann, Herrmann, Hebeda, Steun and Kheml. The Protector’s memorandum states explicitly that the “incorporation” of these workers into the ministry organism does not change in any way their point on the salary scale or the powers of apublic figure.68 As for the newly established Ministry of Economy and Labour, which was central from the perspective of economic affairs, German influence was wielded through the minister who was, for reasons of “extraordinary importance of the Bohemian eco65 Regulation no. 94 of 22 April 1942, Úřední list Protektorátu Čechy aMorava 1942, p.3393. 66 NA Prague, f. ÚŘP, b. 88, sign. Z— Pers. I., Schreiben des Reichsprotektors in Böhmen und Mähren an das Ministerium für Landund Forstwirtschaft z. Hd. von Herrn Minister Hruby vom 24. 4. 1942 (signed by Frank). 67 NA Prague, f. ÚŘP, b. 88, sign. Z— Pers. I, Schreiben des Reichsprotektors in Böhmen und Mähren an den Herrn Leiter der Gruppe II/2 vom 1. 5. 1942. 68 NA Prague, f. ÚŘP, b. 84, Der Reichsprotektor in Böhmen und Mähren an das Finanzministerium, z. Hd. des Herrn Minister Kalfus vom 29. 6. 1942. See also NA Prague, f. ÚŘP, b.1063, file Organizace finanční správy vProtektorátě 1939–1944. Václav Král, Otázky hospodářského asociálního vývoje včeských zemích vletech 1938–1945, Bd. I, Prague 1958, p.21. OPEN ACCESS
barbOra ŠtOllEOvá 67 nomy” aReich German, until then head of the department “Wirtschaft und Finanz” of the RPO Walter Bertsch.69 As he was appointed an extensive apparatus was transferred, as in similar earlier cases, from the RPO directly to the Protectorate authority. In his memorandum of 20 January 1942 Bertsch gave instructions for transfer of all (!) workers of groups II/1 and II/4 of the RPO to the Ministry of Economy and Labour with immediate effect.70 According to attached listings, 21 senior officials [Beamte], 12 officers and another 60 administrative workers [Angestellte] from the group II/1 “Wirtschaft”. As for Group II/4 “Arbeitsund Sozialangelegenheiten” this involved 25 senior officials, 5 officers and another 35 administrative workers. Heydrich’s reform of public administration triggered profound organisational changes throughout the economic sector and became an impulse for the completion of the economic administration on the corporative principle, which had been until then intentionally hindered and put on hold in some areas. Apart from afull reorganisation of the central authorities, Heydrich’s reform comprised reorganisation of the lower echelons of the administration, officesof senior provincial councillors (OLR offices). Most of their original agenda was transferred to provincial Protectorate authorities, political authorities of the 1st resort (district commissioners) and police units (administration “on orders from the Reich”).71 This change was reflected in the pursuance of the regional economic policy. Teams of economic officials working for senior councillors were formally transferred to autonomous structures. So called agricultural experts [landwirtschaftliche Sachbearbeiter] now worked under “senior district commissioners” [geschäftsführende Bezirkshauptmänner]. They carried out their duties “on orders from the Reich” and their offices were the original offices of the senior provincial councillors. Likewise, teams of officials in the area of mobilisation of Czech civilians for the war effort, originally working for the OLR, were transferred to the Protectorate labour offices in consequence of the sweeping reform.72 The final step in Heydrich’s reform of public administration was areorganisation of the RPO based on Directives of 23 May 1942 and 25 November 1942.73 The objective of the changes was to approximate as much as possible the organisation of the central occupation authority to the central Protectorate institution in such away that the 69 President Hácha was originally considering Wenzel Stočes for appointing but due to Frank’s request he finally prioritised Walter Bertsche. NA Prague, f. ÚŘP— AMV 114, b. 19, sign. 114-5-15, Abschrift eines Schreibens des Staatspräsidenten Dr. Emil Hácha vom 20. 12. 1941 an den Stellv. Reichsprotektor. Srov. též. Zpověď K. H. Franka, pp.132–133. Further to organisation of Protectorate’s Ministry of Economy and Laboursee NA Prague, f.ÚŘP— AMV 114, b. 20, sign. 114— 5/23 and sign. 114— 5/20, Personalbestand des Ministeriums für Wirtschaft und Arbeit (Stand am 1. 7. 1942), fol. 4–5. 70 NA Prague, f. ÚŘP, b. 87, sign. Z— Pres. I, Dr. Bertsch an den Herrn Reichsprotektor in Böhmen und Mähren vom 20. 1. 1942. 71 Čeněk Amort, Heydrichiáda, Prague 1965, document no. 34, pp.218–221. 72 NA Prague, f. ÚŘP, b. 84, Der Leiter der Gruppe II/4 an die Gruppe I/1 vom 20.8.1942, betrifft: Verwaltungsreform. 73 The reorganisation took effect on 1 December 1942 and at the same time the regulation from 18 September 1940 was repealed. See P. Maršálek, Protektorát Čechy aMorava, p.72. OPEN ACCESS
68 WISOHIM/ESHP 24 administrative control of the Protectorate matters be streamlined. The Reich Protector’s position remained essentially unchanged. According to the newly announced structure of the RPO the name of the departments coincided in most cases with the names of the Protectorate ministries. In the economic sphere the main competent departments were “Economy and Labour” [Wirtschaft und Arbeit], with independent departments for food and agriculture [Ernährung und Landwirtschaft] and finance [Finanz] working in parallel.74 The distinctive features of the new organisation were aconsiderable simplification of its structure and areduction in the original apparatus. The Reich oversight of the occupation authority was retained but its agenda was pursued inside the ministries. The department “Wirtschaft und Arbeit” of the RPO under the direction of Bertsch was newly divided into 5 sections. First department dealt with Reich supervision of the protectorate economic administration and banking institutions and reported to the original head of groups II/1 “Economy” [Wirtschaft] ministerial councillor Erich von Wedelstädt. The other sections represented Reich oversight in the sphere of “Labour” under the direction of Wilhelm Dennler [Reichsaufsicht über die Arbeitsverwaltung des Protektorats]; “Pricing” under the direction of Hans von Busse [Reichsaufsicht über die Preisbildung des Protektorats] and “Forestry” under the direction of Pflanz [Reichsaufsicht über die Forstwirtschaft des Protektorats]. In addition to these high-ranking officials the department only employed 6 workers, heads of the original groups.75 Similarly, the RPO department for food and agriculture was reduced in size to 3 sections with atotal of 11 clerks, most of whom held concurrently key positions in the Protectorate Ministry of Agriculture and Forestry.76 This applies equally to the organisation of the RPO department “Finanz” under the direction of senior finance president Gross, which was reduced to 3 sections. The reorganisation of the RPO in the autumn of 1942 constituted the organisational foundation for the later Frank’s German State Ministry. Heydrich’s reform of public administration and the parallel building of the economic administration on the corporate principle de facto crowned the efforts of the German occupation force to take control of the economic mechanism of the Bohemian Lands. The large economic department of the RPO, which represented in 1939– 1942 the “epicentre” for the framing of the economic policy in the Protectorate, was directly incorporated into the central Protectorate authorities after the liquidation of the dual-track principle one group at atime. The changes within the organisational structures of the Protectorate ministries and the central occupation authority that emulated their Reich models were to make them more efficient and to simplify communication and thereby the decision-making mechanisms of the Protectorate economic policy. From amore distant perspective these were preparations for complete 74 NA Prague, f. ÚŘP, b. 306, sign I1a 1200— 11, Gliederungsplan der Behörde des Reichsprotektors nach dem Stande vom 1. 4. 1943; NA Prague, f. ÚŘP— supplements I, b. 1, Gliederung der Behörde des Reichsprotektors (Stand am 1. 7. 1943) 75 NA Prague, f. ÚŘP, b. 1080, Gliederungsplan des Reichsprotektor’s office (undated). 76 Further see B. Štolleová, Pod kuratelou Německé říše, pp.91–95. OPEN ACCESS
barbOra ŠtOllEOvá 69 incorporation of the Protectorate and its system into the German Reich. Declaration of total war [Totalkrieg] resulted in another shift of the Protectorate economic policy decision-making towards the Reich level. On the level of the Protectorate authorities the principle of unification of the occupation and autonomous administration was developed further. OPEN ACCESS