Chapter I, German seizure of the means of payment; costs of occupation.

Article 49 of the Hague Convention stipulates that if the occupant levies a tax the money will only be for the army of occupation or for the administration of the territory.

The occupant can therefore levy a tax for the maintenance of its army, but this tax must not exceed the sum strictly necessary. The needs of the army of occupation mean, not the costs of armament and equipment, but only the costs of billeting, food, and pay. I say normal expenses, which exclude luxuries.

Article 52 authorizes the occupying power to exact from the communes or inhabitants, for the needs of the army, requisitions in kind and services, with the express condition that they should be proportionate with the resources of the country and of such a nature that they should not imply for the population the obligation to take part in operations against their own country.

The same Article 52 stipulates that levies in kind shall be paid as far as possible in cash; otherwise they are to be confirmed by receipts and the sums due paid as soon as possible.

In other words, the Hague Convention allows the occupying army to requisition in occupied territories what is necessary for the maintenance of the troops but under two conditions, apart from contributions in kind: 1) That the requisitions and the services should be proportionate to the resources of the country, that is to say, that sufficient should be left over for the inhabitants, to enable them at least to live; 2) that the levies should be paid as soon as possible. This is not a question of fictitious payment made with funds extorted from occupied countries, but actual payment, which implies supplying real equivalents.

Article 53 of the Convention of The Hague which permits the occupying powers to seize everything which could be turned against them—and in particular, cash, funds, and securities of all kinds belonging to the state of the occupied country—does not authorize the occupying power to appropriate them.

According to information furnished by the Danish Government, when the Germans entered Denmark they declared that they would not demand anything from the country, but that supplies for the German Army would come from the Reich.

Nevertheless, instead of buying Danish crowns to permit their troops to spend money in Denmark, as early as 9 May 1940 they imposed the circulation of notes of the Reichskreditkasse, which is shown in Number 26 of the VOBIF, which I have already submitted under Document Number RF-93.

Upon the protestations of the National Danish Bank against the issuing of foreign paper money, the Germans withdrew these notes from circulation, but demanded the opening of an account at the National Bank, promising to draw upon it only for sums which were essential for the maintenance of their army in Denmark.

But the Germans did not lose time in violating their promises and in levying on their account, in spite of the Danish protests, sums infinitely superior to the needs of the army of occupation.

According to the information given by the Danish Government, the Germans levied, per month, an average of 43 million crowns in 1940; 37 million crowns in 1941; 39 million crowns in 1942; 83 million crowns in 1943; 157 million crowns in 1944; 187 million crowns in 1945. The total of these levies amounts, according to the Danish Government, to 4,830 million crowns.

I submit, as Document Number RF-115, the financial report of the Danish Government concerning this, a report to which I shall refer again in the course of this statement.

The indications of the Danish Government are corroborated by a German document discovered by the United States Army, Document EC-86, Page 11, which I submit to the Tribunal as Exhibit Number RF-116.

This is a secret report of 10 October 1944, written by the Arbeitsstab Ausland, and concerns the requisition of funds of the occupied territories.

On Page 11 the following is said:

“Denmark is not considered as occupied territory, and therefore does not pay occupation expenses. The means necessary for the German troops are placed at the disposal of the central administration of the Reichskreditkasse by the Central Danish Bank, through channels of ordinary credit. In any case, for the duration of the war uniform payment by Denmark is assured.”

The writer of this report says that the levies to 31 March 1944, for occupation expenses, amount to: 1940-1941, 531 million crowns; 1941-1942, 437 million crowns; 1942-1943, 612 million crowns; 1943-1944, 1,391 million crowns; which represents, up to 31 March 1944, levies amounting to 2,971 million crowns. This corresponds to the information given by the Danish Government for approximately the same period—2,723 million crowns.

The same German report shows that the rate of exchange for the mark, as compared to the rate of exchange for the crown, had been fixed by the occupying powers at 47.7, then at 53.1 marks per 100 crowns.

Even though the Germans claim, against all evidence, that Denmark was not an occupied territory, they levied in this country the total sum of 4,830 million crowns, an enormous sum in view of the number of inhabitants and the resources of the country. In reality, this was nothing other than a war tribute which Germany imposed under the pretext of furnishing means of payment to her army stationed in Denmark.

The maintenance of the army necessary for occupying Denmark did not necessitate such large expenses. It is evident that the Germans used, as in other countries, the majority of the funds extorted from Denmark to finance their war effort.