|From Schacht's 'New Plan' of September 1934
Source: J. Noakes & G. Pridham, Documents on Nazism 1919-1945, (London, 1974). pp.392-393.
2. ... In future, all German imports will be regulated and they will be controlled by Supervisory Offices. Within the framework of a general allotment system the Supervisory Offices will issue foreign currency permits to importers before transactions are concluded if, judging currency would be available on the due date. These foreign currency permits ensure priority for foreign exchange allotments. Thus, provided that the foreign exchange received comes up to our expectations, foreign exporters will be given a substantial assurance that their claims will be met on the date. Where transactions are concluded without a prior foreign currency permit, however, the importer cannot count on being considered for an allocation of foreign exchange in the near future.
3. It is assumed under the New Plan that, in view of the decline in German exports and the consequent decline in foreign exchange receipts, the issue of foreign currency permits will be to a large degree restricted to vital foodstuffs as well as to raw materials and semi-manufactured goods. Even here considerable restrictions will have to be imposed. Outside the foreign exchange plan the system of barter transactions will be expanded. As regards essential commodities, barter transactions will be sanctioned provided that they do not require foreign exchange. In the case of non-essential commodities, an effort must be made to obtain foreign exchange through barter transactions too, for example by exporting more goods from Germany than are imported.
4. Treaty arrangements will not be infringed. The import of goods in itself can continue in the same way as hitherto, but the German importer who concludes transactions and imports goods without previously receiving a foreign currency permit will be aware from the outset that he cannot count on an allocation of foreign exchange. Consequently, in future the foreign exporter will also be able to satisfy himself as to whether the German buyer and importer will be supplied with foreign exchange and whether, therefore, he himself can expect payment. Thus any complaints about allotment of foreign exchange and non-payment will in future be deprived of justification. Where exchange agreements or clearing arrangements are in force, they will not be affected by the New Plan for the time being, but they must, if necessary, be adjusted to the new situation by negotiation in the sense that the clearing will remain limited to certain goods and quantities. Payments agreements containing the so-called Swedish clause will be applicable only to such goods as are not subject to special management. As, however, all German importers will be subject to management, the payment agreements will, although without any formal infringement of the law, become unworkable in practice. What the effects will be of this undermining process [Aushuehlung] in respect of the various countries concerned remains to be examined. ...
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