27 Nov. 45

That document is identified in our series as C-189, and I offer it in evidence as Exhibit USA-44.

It is headed: "Conversation with the Führer in June 1934 on the occasion of the resignation of the Commanding Officer of the 'Karlsruhe."'

"1. Report by the C-in-C Navy concerning increased displacement of D. and E. (defensive weapons).

"Führer's instructions: No mention must be made of a displacement of 25-26,000 tons, but only of improved 10,000-ton ships. Also, the speed over 26 nautical miles may not be stated.

"2. C-in-C Navy expresses the opinion that later on, the Fleet must anyhow be developed to oppose England, that therefore from 1936 onwards, the large ships must be armed with 35-centimeter guns (like the King George class.)

"3. The Führer demands to keep the construction of the U-boats secret, in consideration of the Saar plebiscite."

In order to continue the vital increase of the Navy, as planned, the Navy needed more funds than it had available; so Hitler proposed to put funds of the Labor Front at the disposal of the Navy.

We have another Raeder memorandum of a conversation between Raeder and Hitler on 2 November 1934. Of this I have a photostatic copy of the German typed memorandum, identified as our C-190. This one, again, is not signed, but it was found in Raeder's personal file and I think he will not deny that it is his memorandum. I offer it in evidence as Exhibit USA-45.

It is headed: "Conversation with the Führer on 2. 11. 34 at the time of the announcement by the Commanding Officer of the 'Emden'.

"1. When I mentioned that the total funds to be made available for the Armed Forces for 1935 would presumably represent only a fraction of the required sum, and that therefore it was possible that the Navy might be hindered in its plans, he replied that he did not think the funds would be greatly decreased. He considered it necessary that the Navy be speedily increased by 1938 with the deadlines mentioned. In case of need he will get Dr. Ley to put 120 to 150 million from the Labor Front at the disposal of the Navy, as the money would still benefit the workers. Later, in a conversation with Minister Göring and myself, he went on to say that he considered it vital that the Navy be increased as planned, as no war could be carried on if the Navy was not able to safeguard the ore imports from Scandinavia.

"2. Then, when I mentioned that it would be desirable to have six U-boats assembled at the time of the critical polit-