17 Dec. 45

well as the Ural industrial regions will be abandoned. It may be assumed that these regions today absorb an annual 5 to 10 million tons from the food production zone.

"2. The Trans-Caucasian oil district will have to be excepted, although it is a deficit area. This source of oil, cotton, manganese, copper, silk, and tea must continue to be supplied with food in any case, for special political and economic reasons.
"3. No further exception, with a view to preserving one or the other industrial region or industrial enterprise, must be permitted.
"4. Industry can only be preserved insofar as it is located in the surplus region. This applies, apart from the above-mentioned oil field regions in the Caucasus, particularly to the heavy industries in the Donets district (Ukraine). Only the future will show to what extent it will prove possible to maintain in full these industries, and in particular the Ukrainian manufacturing industries, after the withdrawal of the food surplus required by Germany.

"The following consequences result from this situation, which has received the approval of the highest authorities, since it is in accord with the political tendencies (preservation of the Little Russians, preservation of the Caucasus, of the Baltic provinces, of White Russia, to the prejudice of the Great Russians):

"I. For the forest zone:

"a) Production in the forest zone (the food-deficit area) will become 'naturalized,' similar to the events during the World War and the Communist tendencies of the war, and so forth —namely, agriculture in that territory will begin to become a mere 'home production.' The result will be that the planting of products destined for the market, such as flax and hemp in particular, will be discontinued; and the area used therefor will be taken over for products for the producer (grain, potatoes). Moreover, discontinuance of fodder deliveries to that area will lead to the collapse of the dairy production and of pig-producing in that territory.

"b) Germany is not interested in the maintenance of the productive power of these territories, except for supplying the troops stationed there. The population, as in the old days, will utilize their land for growing their own food. It is useless to expect grain or other surpluses to be produced. Only after many years can these extensive regions be intensified to an extent that they might produce genuine surpluses. The population of these areas, in particular the