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Your Honours will observe that there are certain deletions and
reservations after some of the items listed in Document 3533-PS.
These were inserted by defendant Funk. The words which he wished
deleted are enclosed in parentheses. His comments are underscored
and followed by asterisks.

We wished to avoid troubling the Tribunal with a detailed
discussion of all these contested points. Accordingly, we
collected in Document 3563-PS relevant excerpts from certain
German publications. This document has also

                                                        [Page 195]

been made available in the four working languages. Moreover, we
submit that the Tribunal can properly take judicial notice of the
publications referred to in the document. However, in order to
facilitate reference, we request that it be received in evidence
as Exhibit USA 652.

In connection with item (b) on the top of Page 1 of Document 3533-
PS - your Honours will find that on Page 1 of the document - your
Honours will observe that defendant Funk has in effect denied that
he was Hitler's personal economic adviser in the 1930's. However,
the excerpts from the four German publications set forth on Pages
1 and 2 of Document 3563-PS directly contradict this denial.

We submit that it will be clear from the documents just referred
to that defendant Funk, soon after he joined the Party, began to
operate as one of the Nazi inner circle. Moreover, as a Party
economic theorist during its critical days in 1932, he made a
significant contribution to its drive for mass support by drafting
its economic slogans. In this connection I would refer to Document
3505-PS, which is a biography entitled, in the English
translation, "Walter Funk - A Life for Economy." This biography
was written by one Oesterreich in German, and published by the
Central Publishing House of the Nazi Party. I offer this document
in evidence as Exhibit USA 653. I wish to quote now from Page 1 of
the translation of this document, the centre of the page. The
corresponding page of the German document is Page 81:

   "In 1931 he" - that is, Funk - "became a member of the
   Reichstag. A document of his activity at the time is the
   'Economic Construction Programme of the N.S.D.A.P.' which was
   formulated by him in the second half of the year 1932. It
   received the approval of Adolf Hitler and was declared binding
   on all Gau leaders, speakers on the subject, and Gau advisers
   on the subject, and others of the Party."

Thus defendant Funk's slogans became the economic gospel for the
Party organisers and spellbinders.

Defendant Funk, however, was much more than one of the Nazi
Party's economic theorists; he was also involved in the highly
practical work of soliciting campaign contributions for the Party.
As liaison man between the Party and the large German
industrialists he helped to place the industrialists' financial
and political support behind Hitler. Defendant Funk, in an
interrogation conducted on 4th June, 1945, admitted that he helped
to finance the highly critical campaign of 1932. I offer in
evidence Document 2828-PS as Exhibit USA 654, and I quote from the
bottom of Page 43 ...

THE PRESIDENT: Lt. Meltzer, is not this really all cumulative and
detailed evidence to support what the defendant Funk has already
agreed with reference to his office? On Page 1 you have the
admission that he was a member of the Nazi Party, chief of the
division of the Central Nazi Party, and chairman of the committee
of the Nazi Party on economic policy, and then it goes on from A
to U with views of the various offices which he held and which he
admits he held. But surely to go into the details of those
positions is unnecessary.

LIEUTENANT MELTZER: If your Honour pleases, the admission of the
various positions listed do not, in our judgement, indicate in any
way defendant Funk's participation in the fund-raising for the
Nazi Party.

THE PRESIDENT: The fund-raising?

LIEUTENANT MELTZER: The fund-raising. Now, it is a possible
inference from those positions that he did engage in the
solicitation of campaign contributions. However, it did seem to us
relevant to mention most briefly direct evidence of that aspect of
his activity.

THE PRESIDENT: Very well, if you say there is nothing in these
offices which covered the matter you are going to deal with; well
and good.

                                                        [Page 196]

LIEUTENANT MELTZER: Defendant Funk, in an interrogation conducted
on 4th June, 1945, admitted, as I said a minute ago, that he
helped to finance this highly critical campaign.

THE PRESIDENT: You see, Lieutenant Meltzer, the heading that you
have so conveniently given to us is that he contributed to the
seizure of power. Well now, nearly every one of the headings A to
U on Page 1, which he admits, is evidence that he contributed to
seizure of power. Is it your object to propose that he also helped
to raise funds? The contribution to the seizure of power is not in
itself a crime; it is only a step.

LIEUTENANT MELTZER: Very well, your Honour. There is one aspect,
however, of his activity in that regard which I should like to
mention; that is, in connection with his fund-raising activities.
He was present at a meeting in Berlin early in 1933; and I am
referring to the document which records that in the course of that
meeting Hitler and Goering submitted an exposition of certain
basic elements of the Nazi programme. The reference to this
meeting is found in Document 2828-PS, which your Honours will find
on Page 28 of the document book. I wish to quote the following
question and answer:

   "Q. About 1933, we have been informed, certain industrialists
   attended a meeting in the home of Goering before the election
   in March. Do you know anything about this?
   
   A. I was at the meeting. Money was not demanded by Goering but
   by Schacht. Hitler left the room, and then Schacht made a
   speech asking for money for the election. I was there as an
   impartial observer, since I was friendly with the
   industrialists."

The character and importance of Funk's work with the large
industrialists is emphasised in his biography which I referred to
earlier, and I will simply invite your Honours' attention to the
relevant pages of that book, which are 83 and 84.

THE PRESIDENT: I do not understand why you read that passage. If
you wanted to show that he was at the meeting, it would be merely
sufficient to say that he was at the meeting. I do not think those
two sentences that you read help us in the very least.

LIEUTENANT MELTZER: If the Tribunal please, those two sentences do
not refer to the meeting. Those two sentences refer to the
biography which sums up the defendant Funk's general contribution
to the Nazi accession to power, and I thought it might be of
interest to the Tribunal to see the attitude of a German writer to
this aspect of the defendant's career.

THE PRESIDENT: It seems to me you referred to the meeting.

LIEUTENANT MELTZER: I was referring your Honour to Pages 32 and 33
of the document book, and to clarify this point may I read briefly
from the biography:

   "No less important than Funk's accomplishments in the
   programmatic field in the years 1931 and 1932 was his activity
   at that time as the Fuehrer's liaison man to the leading men of
   the German industry, trade, commerce and finance. On the basis
   of his past work his personal relations with the German
   economic leaders were broad and extensive. He was now able to
   enlist them in the service of Adolf Hitler, and not only to
   answer their questions authoritatively, but to convince them
   and win their backing for the Party. At that time this was
   terribly important work; every success achieved meant a moral,
   political and economic strengthening of the fighting force of
   the Party, and contributed toward destroying the prejudice that
   National Socialism is merely a party of class hatred and class
   struggle."

THE PRESIDENT: Again, I do not see that that has helped the
Tribunal in the least.

LIEUTENANT MELTZER: After Funk had helped, Hitler become
Chancellor; as Press Chief of the German Government, he
participated in the early Cabinet

                                                        [Page 197]

meetings, in the course of which the conspirators planned the
strategy by which they would secure the passage of the
Presidential Emergency Decree, which was passed on 24th March,
1933. Funk's presence at these meetings is revealed by Document
2962-PS, which has already been received in evidence and by
Document 2963-PS offered as Exhibit USA 656. Your Honours will
recall that this decree marked the real seizure of political power
in Germany.

Soon after this the defendant Funk assumed an important role in
the Ministry of Propaganda. The record shows that the Ministry
became one of the most important and vicious of Nazi institutions,
and that propaganda was fundamental to the achievement of the Nazi
programme within and outside Germany. We do not propose to review
those matters but rather to present evidence showing, as we have
said, that the defendant Funk took a significant part in the
propaganda operations.

The Ministry was established on 13th March, 1933, with Goebbels as
Chief and defendant Funk as Under Secretary, second in command.

As Under Secretary defendant Funk was not only Goebbels' chief
aide but was also the organiser of the large and complex
propaganda machine, I wish to offer in evidence Document 3501-PS,
which will be found on Page 47 of your document book as Exhibit
USA 657. This document is an affidavit signed on 19th December,
1945, by Max Amann, who held the position of Reich Leader of the
Press and President of the Reich Press Chamber. I should like to
read the second sentence of the first paragraph and the entire
second paragraph:

   "In carrying out my duties and responsibilities I became
   familiar with the operation and the organisation of the Reich
   Ministry of Propaganda and Enlightenment, and managed the
   Ministry. Funk was the soul of the Ministry, and without him
   Goebbels could not have built it up. Goebbels once stated to me
   that Funk was his 'most efficient man.' Funk exercised
   comprehensive control over all of the media of expression in
   Germany: over the Press, the theatre, radio and music. As Press
   Chief of the Ministry, Funk held daily meetings with the
   Fuehrer and a daily Press conference in the course of which he
   issued the directives governing the materials to be published
   by the German Press."

In addition to his position as Under Secretary, Funk had many
other important jobs in the Propaganda Ministry and in its
subordinate agencies. These positions have already been listed in
Document 3533-PS. I wish, however, to refer in particular to
Funk's position as Vice-President of the Reich Chamber of Culture.
This position was, of course, related to his functions in the
Propaganda Ministry.

In his dual capacity he directly promoted two vital and related
Nazi policies. The first was the regimentation of all creative
activities in the interests of Nazi political and military
objectives. The second was the complete elimination of Jews and
dissidents from the so-called cultural professions. A full
discussion of the methods by which these policies were
effectuated, has been included in the brief which was submitted as
part of Exhibit USA E. Accordingly, we will not go into that
matter now unless the Tribunal so wishes.

In view of the defendant Funk's major role in the Propaganda
Ministry, it is natural to find Nazi writers stressing his
responsibility for the Nazi perversion of culture. In this
connection, I will simply invite the Tribunal's attention to Pages
94 and 95 of Oesterreich's biography, which has already been
referred to.

After defendant Funk left the Ministry of Propaganda and became
Minister of Economics in 1938 he continued to advance the anti-
Jewish programme. For example, on 14th June, 1938, he signed a
decree providing for the registration of Jewish enterprises. This
decree, which became the foundation for the ruthless economic
persecution which followed, is found in the Reichsgesetzblatt,

                                                        [Page 198]

1938, Part 1, Page 627. It is requested that the Tribunal take
judicial notice of this and all subsequent references to the
Reichsgesetzblatt. May I add that the brief on defendant Funk
gives the document numbers of translations of decrees and other
German publications of which the Tribunal will be requested to
take judicial notice.

THE PRESIDENT: Would that be a convenient time to break off?

LIEUTENANT MELTZER: Yes, your Honour.

THE TRIBUNAL: Before we do so, Sir David Maxwell Fyfe, I see that
one of the counsel, Colonel Phillimore, I think, is proposing to
call certain witnesses. The Tribunal would like to know who those
witnesses are, and what subject their evidence is going to deal
with.

SIR DAVID MAXWELL FYFE: Would the Tribunal like to know now? I
would like to let them know if it is convenient.

THE TRIBUNAL: If you could, it would be convenient now.

SIR DAVID MAXWELL FYFE: Yes. The first witness is Korvetten
Kapitaen Mohle, who was a captain on defendant Donitz's staff, and
he will prove the passing on of the Donitz Order of 17th
September, 1942. I think that is the main point that he deals
with. I think he deals also with the destruction of some rescue
ships, but that is the main point.

The second witness is Lieutenant Heisig. He will deal primarily
with lectures of the defendant Donitz, in which he advocated the
destruction of the crews of merchant ships. That is the general
effect of the evidence.

THE PRESIDENT: Thank you.

(A recess was taken until 14.00 hours.)

THE PRESIDENT: Lieutenant Meltzer, are you intending to call any
witnesses this afternoon?

LIEUTENANT MELTZER: No, Sir. There is another member of the
prosecution, Sir, who I believe is intending to call a witness,
Mr. Dodd.

THE PRESIDENT: In connection with the case against Funk?

LIEUTENANT MELTZER: No, your Honour.

THE PRESIDENT: Or in connection with the case against somebody
else?

LIEUTENANT MELTZER: Yes, Sir.

THE PRESIDENT: Who is it in connection with, Raeder?

LIEUTENANT MELTZER: I believe Mr. Dodd might offer -

THE PRESIDENT: Raeder, is it?

LIEUTENANT MELTZER: No, Sir. Mr. Dodd might offer a better
explanation than I on the purpose of calling the witness.

THE PRESIDENT: Mr. Dodd?

MR. DODD: Yes, Sir. Your Honour, the witness is offered in
connection with the defendants Rosenberg, Funk, Frick, Sauckel,
and Kaltenbrunner.

THE PRESIDENT: I see. The evidence relates to concentration camps,
does it?

MR. DODD: It does, your Honour.

THE PRESIDENT: I see.

MR. DODD: This witness would have been called at the time that we
presented the other proof, but for the fact that he was before the
Military Court at Dachau at that time and was not available.

THE PRESIDENT: I see; thank you.

LIEUTENANT MELTZER: May it please the Tribunal, before we
adjourned we were dealing with defendant Funk's role in the
economic persecution of the Jews. As your Honours will recall, in
November of 1938 the death of von Rath in Paris was exploited by
the Nazis as a pretext for intensifying the persecution of the
Jews. The new policy was directed at the complete elimination of
the Jews from the economic life of Germany. The evidence we will
offer will show that defendant Funk took a significant part in
both the formulation and execution of that policy. In this
connection I would refer the Tribunal to

                                                        [Page 199]

Document 1816-PS which is already in the record. This document is
a report of the meeting on the Jewish question. It will be found,
your Honour, on Page 52 of the document book. This meeting was
held under Goering's chairmanship on 12th November, 1938. In
opening the meeting defendant Goering stated, and I quote now from
Page 1 paragraph 1, of the translation - the corresponding page of
the German document is also Page 1:

   "To-day's meeting is of a decisive nature. I have received a
   letter written on the Fuehrer's orders, requesting that the
   Jewish question be now, once and for all, co-ordinated and
   solved one way or another."

Defendant Funk came to this meeting well prepared. He had a law
already drafted which he submitted with the following explanation
- I quote again from Document 1816-PS, Page 15:

   "I have prepared a law elaborating that, effective 1st January,
   1939, Jews shall be forbidden to operate retail stores and
   wholesale establishments as well as independent artisan shops.
   They shall be further prohibited from keeping employees or
   offering any ready products on the market. Wherever a Jewish
   shop is operated, the police shall shut it down. From 1st
   January, 1939, a Jew can no longer be employed as an
   enterpriser as stipulated in the law for the Organisation of
   National Labour of 20th January, 1934."

I believe we may omit the rest. It is all in the same tenor.

THE PRESIDENT: Yes.

LIEUTENANT MELTZER: The substance of defendant Funk's draft law
promptly found its way into the Reichsgesetzblatt. On 12th
November, 1938, defendant Goering signed a decree entitled, and I
quote, "For the Elimination of Jews from the German Economic
Life," and in section 4 he authorised defendant Funk to implement
the provisions of the decree by issuing the necessary rules and
regulations. An examination of the provisions of this decree,
which is set forth in the Reichsgesetzblatt, 1938, Part 1, Page
1580, will reveal how well it deserved its title "For the
Elimination of the Jews from the German Economic life."


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