500.A15A4 General Committee/886
The German Ambassador (Luther) to the Secretary of State
Washington, April 21,
1934.
My Dear Mr. Secretary: In compliance with
your wish for a written confirmation of the oral statements on the
German budget which I made during our conversation yesterday, I deem
it best to send you herewith a copy of the cable which I received,
as I mentioned, from the Foreign Office, bearing on the subject,
together with an English translation.
With respect to the funds asked for in the budget estimates for the
transformation of the German Reichswehr into an army of short-term
service—a transformation which was demanded by France herself—I wish
to confirm that the inclusion of the items in the budget estimates
means the setting aside of the funds in question, but—according to
statements received from the Foreign Office—does, of course, not
imply that these amounts will actually be spent. In view of the fact
that the course of the disarmament negotiations had permitted hope
that a settlement of the disarmament question could be expected
before long, it was, for the pursuance of an orderly budgetary
policy, not feasible to leave the expenditures required by the
transformation without consideration. To give some more detail about
the use of these funds, I should like to emphasize the fact that,
according to the Versailles Treaty, all barracks not used for the
housing of the Army of 100,000 men, had to be razed to the ground or
reconstructed for civil purposes, so that now a considerable amount
is needed for buildings.
Furthermore, I repeat no funds whatever are asked for in the German
budget for military airplanes the demand of which was made in
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the note of the German
Government addressed on April 16th to the British Government.13
Supplementing my statements made yesterday, I may add that the total
increase of the estimated expenditures for the army and navy as
compared with the preceding year amounts to about 220 million
Reichsmark (less than one hundred million dollars), according to
official figures which I received in the meantime.
Believe me [etc.]
[Enclosure—Translation]
The budget plan of the Reich for the budgetary year 1934/1935,
published a few days ago, is frequently misinterpreted in the
international press, together with unfounded attacks upon
Germany. The budget for the army has been balanced with the
amount of 654,6 millions in expenditure which, as compared to
last year’s budget signifies an increase of 172 millions. The
increased expenditures are necessary for the preparations in
connection with reconstruction of the army, provided for in the
budgetary year 1934/35, resulting from the situation which
followed negotiations concerning the disarmament question. The
expenditures of the naval budget amount to 236 millions, an
increase of 50 millions, as compared to the preceding year.
These increased expenditures are substantiated by the greater
costs of a systematical replacement of our ships material which
has long since become inadequate, the replacement of which, if
only for the security of the crew, can no longer be delayed. The
budget of the Ministry for Aeronautics can not be regarded as an
armament budget. It is divided into an air-service and
air-protection budget. The expenditures of the air-service
budget amount to approximately 160 millions. This sum is
required for the replacement of old airplanes of the private air
transport line (Lufthansa)—which, as in
other countries, is subsidized—the substitution of one-motor
planes by two- or three-motor planes, the introduction of
long-distance flights also in winter and increased night
service, which require greater flying safety, development of the
lighting and the radio-telegraphic hearing system. Besides, the
increase is required for the furtherance of overseas air service
and scientific research in the field of aircraft. The
expenditures for air protection, for which in the preceding year
only 1½ millions were provided, amount to 50 millions. These
funds are needed for the almost complete re-establishment of an
organization for the protection of the population against air
attacks, which includes the building of shell- and gas-proof
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cellars, the training of
troops to fight poison gas attacks, the improvement of the means
for fire-extinguishing, training of special troops for warning,
restoration, disinfection, etc.
