Letter from Herbert Steinitz to Paul H. Gant and Alvin Landis, February 21, 1948

21 February 1948 fir. Paul d, Gantt ♦ Deputy Director, Етп.ШШ* Dlv. Attention: TO г Mr. Landis, occwc Nuremberg, Court House, Room 124* К г Herbert Steinitz subject WscHsBRiH-saosxoK:^ directives for ~rei~ financing of the rearmament . ШтЫтй please Пай the photostats BBT 7548 to BBT 7357# originating from the folder SC 3560 (cover is photostated) of the former Reich Ministry of Finance, BBT 7348 shows that КЯМ2К during a conference with Keitel and Soh&cht {February 1938) granted 11/2 billion HM to the Army for the budget year of 1938. A change la the financing method from the "Mefo" drafts to treasu¬ ry bills is decided on and several other conferences concerning the financing of the rearwement have already taken place. The document on page 1 bears KROLIGK’e green line. BBT 7349 Schscht informs Ш0ШШ that he has informed the Banks that they could acquire prolongated Mefo draft© from the Relehsb&nk, but assures XA0S1GK that these drafts shall be no "competition" to the treasury bills. BBT 7350 indicates that KR0SXC& wanted to have the whole matter kept secret, as apparently the news about the change in rearmament financing has leaked out, Bayrhoffer suggests an information of the press according to the attached draft. (BBT 7351). BBT 7351 The draft speak® of the "increased income of the Reich which makes it poeeible to use Reich funds directly instead of "special draft® M for the payment of "Reich orders" (read: "armament orders’), BBT 735^ states in par. 2 that beginning 1.4.1938 funds for the Sehrmaoht will be given exclusively by the Reich Minis¬ ter of Finances.