WesWorld

Rheinische Post, Thursday, 1 March 1945

The commercial registrar of Baden-Württemberg reports the formation of a new aviation firm in the city of Stuttgart. Bölkow Entwicklungen GmbH, founded by a group of private investors led by aeronautical engineer Ludwig Bölkow, will undertake the manufacture of civil sport aircraft.


Heavy Cruiser Graf Spee, San Diego Harbour, Friday, 2 March 1945

After a delightful and relatively uneventful visit to the American naval base at San Diego, the time had come for the German cruiser squadron to continue its voyage. Anchor chains rattled in hawse-holes and puffs of smoke arose from the stacks as the seven vessels made ready for sea. Slowly they began to move from their moorings and form a familiar column; salutes were exchanged with each American warship as the Graf Spee made its way down the channel, with an American destroyer in the lead.

An hour later they passed the sea buoy that marked the open ocean. “Come to course two-six-zero,” Langsdorff ordered. In turn the bows of the German vessels swung southwestward and they headed into the wide Pacific toward their next destination – Hawaii.


Kronen Zeitung, Saturday, 3 March 1945

The kabinet office of George, Prince of Saxe-Meiningen, has announced the betrothal of the prince’s daughter, Princess Regina Helene, to His Imperial and Royal Highness Archduke and Imperial Prince Otto of Hapsburg-Lorraine.

Kriegsmarine Survey Ship Meteor, 11 dgs 23 min North, 55 dgs 8 min East, Sunday, 4 March 1945

The ship had completed its survey of the extent of the Carlsberg Ridge; for the scientists aboard this offered tantalising clues as to the geological processes that brought about its formation. For the crew however, it meant the end to what seemed an interminable round of hauling the towed magnetometer in and out, of the sound of the fathometer echoing throughout the hull. Meteor was now headed towards the Red Sea port of Djibouti, to take on supplies and fresh water, preparatory to heading for home – she had been away for more than five hundred days, and all aboard were looking forward to setting foot in the fatherland again.


Militär-Wochenblatt, Monday, 5 March 1945

The Defence Ministry has opted to procure a reconnaissance variant of the Junkers Ju288 medium bomber to supplant the Ju88E in the long-range reconnaissance role. Deliveries of the first aircraft are expected to commence in the early summer.


Oberösterreichische Rundschau, Tuesday, 6 March 1945

Breslau, Hindenburgstrasse, Wednesday, 7 March 1945

The unmarked car from the Abwehr outstation was parked on a side-street, with a view of the block of flats that occupied Number Fourteen Hindenburgstrasse – the residence of Gunther Manninger, the latest suspect in the Polish spy network that Hauptmann Walter Schellenburg was determined to wreck. For the moment the orders of the two officers in the car was simple – observe and report back.

“Here he comes,” said the first officer, noting that their target had exited the front door of the building and was walking down the steps. “Right on time.”

“Ja,” replied the second officer, the driver. “He is turning right.”

“He must be taking the bus today,” added the first officer. “I guess I will have to join him. Stay a bit behind us.” With this the passenger got out of the car and crossed the street, sauntering in a casual pursuit of Manninger.

Indeed, a motorbus was pulling up to the street corner – Manninger stepped aboard, and the Abwehr officer had to dash the last few metres to board himself. This gave him opportunity to pick a seat where he could observe the suspect, who was busy reading a newspaper.

Why Manninger was taking a bus as opposed to the tram – which he would have taken had he turned to the left on Hindenburgstrasse – was curious; either he had an appointment elsewhere in the city as part of his regular duties, or…

A movement attracted the officer’s attention – Manninger had folded his newspaper as if finished with it, and was exchanging it with the non-descript individual who sat alongside him. “Classic tradecraft,” the officer noted.

This would not be a routine day after all.


Kieler Nachrichten, Thursday, 8 March 1945

The light cruiser Stuttgart was launched today in the naval shipyard and towed to the fitting out wharf to complete her construction.


Heavy Cruiser Graf Spee, 21 dgs 14 min North, 157 dgs 56 min West, Diamond Head bearing East, Friday, 9 March 1945

American patrol aircraft operating in relays had been observing the progress of the German cruiser squadron for the past day, and early that morning an escort of two cruisers and four destroyers had made rendezvous. Following the proper change of salutes, they had taken station to lead the Graf Spee and her consorts up the channel towards the entrance to Pearl Harbour, the principal American naval base in Hawaii.

The voyage from San Diego had been uneventful, though Langsdorff had taken the opportunity to refuel all his ships from the Donau while en route. He had been advised that the Etappendienst had provided for fuel supplies in Hawaii and the Donau could refill her tanks before the squadron continued its cruise.

At a speed of twelve knots the ships now made their way in single file through the narrow harbour entrance, exchanging salutes with the shore batteries that protected this bastion of American power. From the bridge of the Graf Spee Langsdorff could see that the headlands were crowded with onlookers – it was not every day that a quartet of foreign cruisers paid a goodwill call here.

Abwehr Outstation Breslau, Saturday, 10 March 1945

It had not taken long to break Gunther Manninger; when confronted with the evidence against him – copies of documents he had made for dispatch to Poland, the inexplicable sums of money found in his accounts – backed by Schellenburg’s quiet assurance that “it will be better for you if you cooperate”, the man had confessed. Much to Manninger’s surprise, he was to be allowed a modicum of freedom, in exchange, he would continue to supply information to his Polish contacts, but under the direction of the Abwehr.

Schellenburg now had three of the Spider’s agents under his control – Manninger, Lonkowski and the incipient source Griebel. His plan was gaining traction.


Emder Zeitung, Sunday, 11 March 1945

The Kriegsmarine survey ship Komet has returned home from its extended survey of the geologic conditions of the northern portion of the Mid-Atlantic Ridge.


Nachrichten für Außenhandel, Monday, 12 March 1945

Frankfurter Zeitung, Tuesday, 13 March 1945

The Ministry of Economics has announced that it will fund the supply of four examples of the Dornier Do.27 utility transport aircraft to the Republic of Armenia and a further four to the Republic of Azerbaijan under the aegis of the Deutsche Entwicklingsdienst.


The Egyptian Gazette, Shipping News, Wednesday, 14 March 1945

The German Navy survey ship Meteor arrived today at Port Said having transited the Suez Canal. It is reported that the vessel is homeward bound and concluding an around-the-world voyage of scientific investigation.


Eisenbahn Kurier, Thursday, 15 March 1945

Lübecker Nachrichten, Friday, 16 March 1945

The battleship Bismarck has completed her refit and is now embarked upon a shake-down cruise in the Baltic. She is expected to resume operations with the fleet later this month.

Oberhessische Zeitung, Saturday, 17 March 1945




Krakow (Poland), Sunday, 18 March 1945

Jan Pajak re-read the document before him and smiled. The report from his agent in Breslau, Manninger, pleased him – it had new information regarding the Silesian provincial administration’s contingency plans in the event of mobilisation. It was not that any such action was contemplated at this point in time, but the plans his agent revealed would give advance warning when the Germans actually made such a move. This was excellent progress and would answer the hacks in Warsaw while his other agents dug deeper to discover the extent of German intentions.

Heavy Cruiser Graf Spee, at anchor, East Loch, Pearl Harbour, Hawaii, Monday, 19 March 1945

The crews aboard his ships were making ready for sea, and the squadron would depart the following morning; it was a time of reflection for Hans Langsdorff. The squadron’s visit to Hawaii had prompted much interest – among the American officers stationed there, which came as no surprise to Langsdorff, but also to the number of visitors from foreign consulates – the Japanese and Chinese prime among them. Langsdorff was under no illusions and was convinced that the “cultural attaches” were, in fact, naval officers in mufti. These had been fobbed off with useless tours of the mess decks and libraries, as befitted their “cultural” status.

Visiting American officers were accorded much more welcome. As in San Diego the newer vessels garnered more attention – the captains of the American oilers Sabine and Guadalupe were keen to compare their own vessels with the tanker Donau – though the opportunity to compare their respective abilities at sea was not countenanced. From Langsdorff’s perspective he found the manner by which the Americans grouped their aircraft carriers in the same formation as their battleships as “old school”; but then, having suffered at the hands of carrier-based aircraft in exercises not long concluded, perhaps keeping such vessels close at hand had its value.

His own tour of the new battleship Montana was most illuminating, the lead ship of a class that compared quite favourably with the Sachsen class of the Kriegsmarine. Taken in whole, the American massed no less than ten capital ships, two aircraft carriers and ten cruisers at this western bastion – a disposition he presumed reflected the reaction of the United States to the recent conflict in Asia. It was something he would have to consider as their voyage continued.


Deutsche Presse-Agentur, Berlin, Tuesday, 20 March 1945

Minister of Transport Gottfried Treviranus submitted his semi-annual report on the progress of construction of the National Motorways system. In the minister’s remarks he indicated that due to the extremely inclement weather that has struck the nation over the winter months many projects have fallen behind schedule, which will necessitate emergency spending during this year to make up for the delay. However, progress was made in construction of the motorway between the port of Stettin and the Polish frontier and in the section between Görlitz and Breslau. He reported completion of the motorway linking the port of Hamburg with the Ruhr – an announcement that was greeted with applause by many of the members of the Reichstag.




Magyar Nemzet (Budapest), Wednesday, 21 March 1945

It is reported that the German industrialist Friedrich Thyssen has been invited to take a directorship on the board of the Ganz Works. Thyssen, a director of the German VESTAG steel combine, holds shares in a number of enterprises in Germany and in Hungary.

Admiral Langsdorff thinks it's old school to group aircraft carriers with aircraft carriers?

Quoted from "TheCanadian"

Admiral Langsdorff thinks it's old school to group aircraft carriers with aircraft carriers?

Oops... I've got to stop those late night posts...

US Navy Catalina Patrol Aircraft, 18 dgs 19 min North, 160 dgs 26 min West, Thursday, 22 March 1945

Since it departure from Pearl Harbor two days previously the German cruiser task force had been politely observed by relays of Catalina flying boats operating out of Naval Air Station Ford Island. The task force’s progress on a southwesterly course had been plotted and checked several times, and it caused the intelligence officers of the Pacific Fleet to wonder where it was bound. Its present course was off the main shipping routes, and suggested a destination somewhere in Pacifica, but where the Graf Spee and her consorts were heading was an unknown.

The pilot of the Catalina checked his fuel gages. “It looks as if it is time for us to go home,” he said, noting they read half-empty.
“Yeah,” his co-pilot added. “Hopefully we won’t run into head winds.”

The pilot ordered the radio operator to signal headquarters with the last known position of the German squadron, their course, and their speed. From this point on, they would be lost in the wide Pacific.


Abwehr Headquarters, Berlin, Friday, 23 March 1945

Wilhelm Kanaris re-read the report of the specialists in Abteilung II – their evaluation of the latest information from Source Merlin – the Hungarian intelligence organisation – suggested problems. The last several reports from Source Merlin on British actions and intentions were contradicted by other intelligence sources. Data from Source Merlin in other areas – such as the reorganisation of the Italian Army and diplomatic developments in Iberia – could be confirmed; that pertaining to Britain could not.

“The pattern of gaps suggests that Source Merlin no longer has reliable contacts inside Britain, or that Source Merlin’s contacts in Britain have been compromised.”

His people minced no words. He would have to proceed on the assumption that all information garnered by Source Merlin pertaining to Britain was information the British hoped would be believed.


Berliner Morgenpost, Saturday, 24 March 1945

The Kriegsmarine survey ship Meteor has called at Gibraltar on its homeward voyage. Preparations are in hand to welcome the ship returns to Emden next month.

Bremer Nachrichten, Sunday, 25 March 1945

The battleship Tirpitz has completed its post-refit trials and has rejoined the First Battle Squadron. Her sisters Hindenburg and Mackensen are scheduled to begin their modernisation next month.


Militär-Wochenblatt, Monday, 26 March 1945

Jagdgeschwader 4 has begun conversion from the He100 to the new BFW Bf262 interceptor. The first of the unit’s gruppen has received its complement of the sleek jet aircraft and the remainder are expected to exchange their veteran Heinkels over the next several months.


Autozeitung, Tuesday, 27 March 1945

Göttinger Tageblatt, Wednesday, 28 March 1945




Das Andere Deutschland (Duderstadt), Editorial Page, Thursday, 29 March 1945

It is not often that we find need to take to task other nations for their moves to oppress the working class – our own Government gives more than sufficient opportunity; yet the recent Confederation proposals brought forth in the Netherlands by Lodewyk van der Berg of the Rooms-Katholieke Volkspartij demand the strongest response from workers around the world.

Consider what Herr Van der Berg proposes –

“Each nation would commit to teaching Dutch in addition to a native tongue and a foreign tongue” – that is, the Dutch language would be imposed on millions of Queen Wilhemina’s already-oppressed colonial subjects across the East Indies and in the depths of the Congo.

“A ruling council representing the nations would be created, with a Monarch as head… would also serve as a constitutional court to validate elections… would also decide when a military action by all was required… would generally act by 2/3rds majority” – is this not a Star Chamber under the thumb of the Monarch? There is no word about how this council would be formed – and we must therefore conclude that it will comprise none other than the Monarch’s hand-picked favourites.

“Each Nation would have to contribute a percentage of their annual tax income to a central treasury. This would fund both the Council, and common armed forces for defence” – in other words the statutory amercement of the working class that the bourgeoisie and rentier classes shall escape through their control of the political process.

It is our hope that the vigilant representatives of the workers in Belgium and the Netherlands will see through this farrago of platitudes and stop this heinous proposal in its tracks. We take small comfort in the fact that the German Government has yet to express itself on this matter and call upon the German Government, which proclaims to espouse the socially just distribution of wealth, to express its anathema to this chimerical proposal.

(Das Andere Deutschland (Duderstadt) is a Socialist and pacifist newspaper (recently displaced from Berlin) that in no way reflects the opinions of the German Government.)

Heavy Cruiser Graf Spee, 12 dgs 4 min North, 167 dgs 57 min East, Friday, 30 March 1945

The German cruiser squadron under Admiral Langsdorff’s command steamed easily amidst the long swells of the Pacific Ocean. Here, far out of sight of land or even patrolling aircraft the squadron took time to refuel and take on other stores from the replenishment ship Donau. Steaming due west at an easy twelve knots the German ships were in little hurry to make their transit; they maintained radio silence, though close watch was kept on all wavelengths. Here Langsdorff could also exercise his aircraft crews, launching the small Arado floatplanes that would be his eyes.

Langsdorff knew from listening to wireless reports from Hawaii that his departure from Pearl Harbour had been announced – indeed, one announcer had done a moment-by-moment commentary as his ships had sailed out through the harbour channel. Yet the world did not know whence the Graf Spee and her consorts were bound; following instructions from the Admiralstab in Berlin Langsdorff had not advised his American hosts of his next port of call. Perhaps, he thought, Berlin wished others to wonder where he had gone…


Kriegsmarine Survey Ship Meteor, off Borkum, Saturday, 31 March 1945

The diesel engines that powered the Meteor now purred quietly as she carefully made her way up the channel to the port of Emden; the last thing that was needed now was to go aground in sight of home. By dint of running at maximum safe speed she had shaved a day off her expected arrival so that her crew might spend Easter with their families. The harbour pilot came aboard to guide her up the Dollart estuary.

Below decks the crew – naval ratings and scientists alike – were in anticipation of returning home. The Meteor had been away from Germany for more than eighteen months; reams of data had been gathered that would take at least as long again to be digested before it emerged in scientific journals to give but a glimpse of the complex geography that lay beneath the waters of the Pacific and Indian Oceans. But all that could wait.

It was nearly midnight when she docked at her berth, nudged into position by a pair of tugs. The throbbing of her engines ceased. Despite the late hour a crowd had gathered on the dock to welcome her and her crew. Meteor was home.

The introduction of the reaction-jet engine has wrought a profound change in the world aviation scene – one whose ultimate ramifications have yet to unfold; yet even in these early stages of the so-called "reaction-jet age” it is clear that old assumptions can no longer be relied upon. Once improvements to aircraft performance relied squarely upon higher horsepower coaxed from the internal combustion engine; today a whole host of metallurgical and other technological barriers must be overcome if the promise of the reaction-jet engine is to be fulfilled.

The initial experimental work on reaction-jet engines was undertaken by Doctor Hans von Ohain of the University of Göttingen. On 10 November 1935 he filed patent 317/38, Process and Apparatus for Producing Airstreams for Propelling Airplanes, and in 1936 entered into collaboration with the aircraft manufacturer Ernst Heinkel to undertake development of a practical aircraft engine embodying the principles laid down in his patent. This resulted in the development of the Heinkel-Strahltriebwerk 1 (HeS1) engine. Constructed over the latter portion of 1936 and completed in March 1937 the HeS 1 demonstrated the practicality of the reaction-jet concept, though it was crude and made largely of sheet metal. There followed the Heinkel-Strahltriebwerk 3 (HeS 3) – the world’s first operational reaction-jet engine to power an aircraft. The relatively poor performance obtained by the HeS 3 confirmed the need for much basic research to address the needs of this new type of aircraft powerplant.

New Materials for a New Age

The reaction-jet engine, not unlike its internal combustion predecessor, has many component parts – but the demands placed upon them are far different than the familiar radial or inline aero-engine. The principal components of the reaction-jet engine are the turbine, the compressor and the combustor, each of which offers challenges to the design engineer and metallurgist. These challenges include the need for great strength combined with the lightest possible weight and the ability to withstand the intense heat generated by the engine itself. The like all aircraft engines it must withstand the rigours of flight, and, to be practical, it must be reliable.

Much basic research into high-strength metals has been necessary to provide the materials necessary to create the modern reaction-jet engine. The Metallwerk Plansee has been in the forefront of this work, which has seen development of high-strength, high-temperature aluminium alloys composed of aluminium, copper and titanium as well as nickel-based high-temperature superalloys composed of nickel, chrome and cobalt. To produce these materials in the requisite quantity it has been necessary for many of Germany’s metal plants retool and adopt new production processes. An example of this is the way in which compressor discs – the heart of the compressor unit of the reaction-jet engine – are manufactured. Initially such components were machined from solid forgings; using technology developed by the Plansee concern these are now created using powder metallurgy, resulting in a stronger, more reliable and more lightweight component; and one requiring less effort to produce.

The stresses placed upon the airframes of aircraft powered by reaction-jet engines have required development of new aluminium alloys for the frame and skin of the aircraft – offering great strength and lighter weight. Such alloys can be heat-treated and can be welded. Subsidiaries of Vereinigte Deutsche Metallwerke, specifically Vereinigte Deutsche Nickelwerke and Vereinigte Leichtmetallwerke have been in the forefront of these developments.

Reliability

These factors have been cause for many of the delays in the development of the reaction-jet engine despite the considerable investment of the aircraft industry and the Ministry of Defence. Even with the availability of suitable materials, designers have had to make many tests to eliminate new found problems, such as the tendencies of the first engine designs to surge or otherwise deliver their thrust in an inconsistent or uncontrolled manner.

The reliability of the first reaction-jet engine designs left much to be desired – the Heinkel-Strahltriebwerk 8 (HeS engine which powered the Heinkel He280 fighter aircraft had a time-between-overhaul of less than twenty hours. Until suitable alloys became available the Junkers Jumo 004 reaction-jet engine suffered from similar limitations – though now it is reported that the time-between-overhaul of that engine new exceeds one hundred fifty hours.

The Current State of Affairs

The Junkers engine has been developed to power the Luftwaffe’s current generation of reaction-jet engine aircraft, the Bf262 interceptor and the Ar234 light reconnaissance bomber. Production of engines had been a limiting factor in the deployment of both aircraft but these have been overcome – the Junkers works at Kothen has completed its retooling and is the centre for assembly and manufacture of the Jumo 004; the Pommersche Motorenbau at Neubrandenburg has been contracted to undertake manufacture of the 004 engine and is expected to commence production late this year.

The present version of the engine – the Jumo 004B – weighs 745 kg and produces a thrust of 897 kilograms at 8,800 revolutions per minute. The relatively low thrust available necessitates the use of two engines on the Bf262 design; while work continues to increase the engine’s power output, more hope is held out for the BMW 003 engine.

This powerplant has been under development for many years, and it is expected to be the engine around which the Luftwaffe’s next generation of combat aircraft will be designed. The BMW centre at Eisenach-Dürrerhof is presently testing the latest version of the 003, which has recorded a thrust of more than 800 kilograms; the immediate goal of the development program is for an engine capable of more than 1,300 kilograms of thrust. Engineers at BMW have been quoted as saying that given time and the materials, the basic design of the 003 is capable yielding thrust in excess of 3,000 kilograms; this lofty goal, if attainable, is years away.

The Heinkel-Strahltriebwerk 11 (HeS 011), also in development, features a unique compressor arrangement, combining a three-stage axial compressor with a diagonal stage similar to a centrifugal compressor, along with a low-compression impeller in the intake to smooth out airflow. Initial bench tests of the HeS 011 have produced results comparable with the BMW003 engine; however, the complexities inherent in the design and manufacture of the reaction-jet engine have resulted in several test failures and the HeS 011 has yet to be flight tested.

Besides its work on the Jumo 004 the Junkers firm is also investigating the development of the so-called “turbine-propeller” engine, which uses a reaction-jet engine to spin a propeller, looking much like a conventional aero engine to the observer. This work is under the direction of Doctor Ferdinand Brandner. This type of engine holds out great promise for commercial aviation, where high horsepower is required for the large passenger and cargo transport aircraft now in service. Conventional engine technology is reaching its limits, and the turbine-propeller seems the natural successor in this field.

Other manufacturers have also entered the field. Both Daimler Benz and Hirth-Motoren have announced that they have begun development work on reaction-jet engines though little information has been disclosed to date on the nature of their designs. Unconfirmed reports in the popular press have described the Daimler project as a zweistromstrahltriebwerk – or twin-flow reaction-jet engine supposedly offering greater engine efficiency. The Hirth firm is believed to be adapting reaction-jet principles to lower power engines suitable for commercial or sporting use.

A very interesting and useful article. It answers most of the questions I had regarding Germany's jet technology.

If you have any unanswered questions, please feel free to ask. I may even answer.

Indeed, a very good article. I'll be keen to see what sort of engines Hirth and DB have in mind.

Background

Possessed of one of the more developed economies in the Danubian basin the Kingdom of Hungary is a major trading partner; it is a source for agricultural produce and raw materials required for continued economic development at home; it is an outlet for capital and consumer goods on a large scale; and its role in the transit trade throughout Southeastern Europe provides excellent commercial opportunities for both short and long term investment.

As a result of the Treaty of Trianon Hungary lost a considerable portion of its territory, its resources and its outlet to the sea. Before the war Hungary depended upon the Austrian and Czech parts of the empire for the import of up to eighty percent of Hungary’s raw materials and a market accepting an equal percentage of Hungarian exports; the end of the Austro-Hungarian Empire left the new Hungarian state with few raw materials and much reduced markets, all adding to the devastation wrought on Hungary’s economy by three years of war. These factors have conditioned the process of transition and reconstruction that the Hungarian economy has undergone since the Great War.

The Agricultural Sector

The Hungarian economy retains a strong rural component. Wheat is the principal grain crop – with more than thirty million quintals being harvested. Maize is the second major crop, with more than twenty-six million quintals grown. Other major grain crops include barley, rye and oats. Considerable quantities of livestock are marketed – with more than 180,000 head of cattle being slaughtered in the past year; however, hogs form a far larger proportion of production – with more than 1,500,000 hogs coming to the market annually.

The Financial Sector

Hungarian finance is dominated by five large banks based in the city of Budapest – the Hungarian General Credit Bank, the Hungarian Commercial Bank of Pest, the Hungarian Discount and Exchange Bank, the Hungarian Bank and Commercial Company and the First Hungarian Savings Bank of Pest. These institutions dominate many of the major industrial concerns. Local laws do not permit German banks to establish branches within Hungary, though many have correspondent relationships with Hungarian banks.

Germany is a source for long and short-term credits to finance commercial transactions, and is a provider of many loans to the state. These roles have increased as investment capital formerly provided by French, British or Netherlandish financial institutions has been attracted to development projects in their respective colonial empires.

The Industrial Sector

Though disrupted by the aftermath of the Great War the Hungarian industrial sector is relatively developed. The electrical goods industry is particularly well developed in Hungary, though there has been expansion of the automotive and metals industry in recent years.

The Mining Sector

Commodity metals mined in Hungary include bauxite, manganese and copper. Industrial minerals produced comprise clays and kaolin, lime, perlite, sand and gravel. Brown coal and lignite are the principal mineral fuels mined, though petroleum and natural gas form an expanding part of the energy supply.

Foreign Trade Opportunities

In general, Hungary is able to maintain an overall positive balance in foreign trade, which enable it to service the nation’s external debt – which amounts to more than three milliard Reichsmarks. Of its exports, more than fifty-five percent comprise foodstuffs, principally grain; thirty-two percent comprise raw or semi-finished products, principally mineral ores and timber; and only thirteen percent comprise industrial goods of any sort. In contrast, of its imports, more than thirty percent comprise industrial goods, and sixty-one percent raw or semi-finished products; Hungary is mostly self-sufficient in foodstuffs, with imports comprising only nine percent of total imports.

With the union of the Austrian provinces with the rest of the Reich Germany inherited the traditional trading role of the Cisleithian provinces of the old Hapsburg monarchy. This, reinforced by the commercial accord of 1934, has given Hungary a preferential position vis-à-vis its neighbours in the German market. In 1929 Germany took but 11.7% of Hungary’s total exports – by 1939 it had risen to 52.4%; in 1929 Germany had provided Hungary with 20% of its imports – in 1939 it supplied 52.5% of its imports. While much of this change reflects the growth of the German economy as a whole it is due to the privileged position granted to Hungary in the German customs system – Hungarian products are able to enter Germany on nearly the same basis as those from PETA members.

For Germany Hungary is a source for wheat, corn fodder (chiefly barley and maize), beef cattle, pork and poultry products, fruits, fats and vegetable oils. Hungary also supplies considerable quantities of bauxite, copper and manganese ore and increasing quantities of petroleum. In exchange Germany supplies the Hungarian market with consumer durables, a wide variety of manufactures, artificial fibres, iron and steel products, motor vehicles and coke and chemicals. Hungary is one of Germany’s largest export markets for capital goods.

Investment in Industrial Enterprises

The recent appointment of industrialist Friedrich Thyssen to a directorship of the Ganz works is but the latest sign of growing German influence in Hungarian industry.

The relations between the Österreichisch-Alpine Montangesellschaft and Hungarian National Iron and Steel Company date back many years, surviving from the pre-war era. Holding a fifth-share of the Hungarian firm’s capital the Montangesellschaft has long provided technical assistance and short-term credits to MAVAG. The firm of Osram AG has long been a substantial shareholder in the United Incandescent Lamp and Electrical Company, the largest Hungarian manufacturer of light bulbs and lamps.

In the wake of the 1940 economic agreement between our two nations German capital was permitted to participate in three Hungarian firms that have since made significant contribution to the Hungarian economy: the Aluminium Mining and Industrial Company, which has established bauxite mines in the Bakony District (Vereinigte Deutsche Metallwerke); the Iron and Metal Commercial Company, which mines and processes manganese mining at Urkut (Klockner-Deutz); and Hungarian Oil and Gas Company, which has recently discovered exploitable oil resources near Szeged (Kontinentale Öl). These ventures have opened up resources of great value to both nations.

This trend has continued over the subsequent years. The Deschimag engineering concern now holds shares in the Hungarian General Machine Works, a manufacturer of vehicles and automotive equipment. The First Hungarian Agricultural Equipment Company, which manufactures tractors and other agricultural equipment, is owned in part by the Mannheim-based firm of Heinrich Lanz. The Siemens concern has developed the Standard Electric Company of Budapest as a major manufacturer of telephone equipment.

While the traditional position of the great banks of Wien in financing Hungarian industry was usurped in the aftermath of the Great War, several Hungarian industrial concerns remain affiliated with them. The Österreichische Creditanstalt holds shares of the Rimamurany Salgorarian Iron Works, one of Hungary’s principal iron and steel works, and names one director to that firm’s board. The recently reorganised Hungarian Shipyard and Cranebuilding Works at Angyalfold is associated with the Wiener Bankverein, and the Allgemeine Bodencreditanstalt owns a quarter-share of the Femaru Arms and Machine Manufacturing Company, one of Hungary’s premier ordnance works.

Investment in Financial Enterprises

The recent acquisition an interest in the Hungarian General Insurance Company by the Allianz Versicherungs is but the latest in a series of investments made by German banks and financial institutions in Hungarian banks. The Österreichische Creditanstalt has re-established its links with the Hungarian General Credit Bank, which in turn increases its influence in the firms under the control of that bank. The Commerzbank has been actively purchasing the shares of the Hungarian Discount and Exchange Bank, though it has not formally announced its intention to take a stake in it.

Investment in Transportation Enterprises

While rail transportation in the Kingdom of Hungary is under the aegis of the state railways (Magyar Kiralyi Allamvasutak) German capital is involved in other transportation enterprises. The Hungarian Air Transport Company has long enjoyed affiliation with the Junkers concern, though today the airline operates machines from several other manufacturers. Of more direct interest is the recent acquisition of shares in the Hungarian River and Sea Navigation Company by the shipping firm Süddeutsche Donau-Schiffahrtsgesellschaft.

Potential for the Future

There are considerable opportunities for German firms to invest in existing Hungarian enterprises and to further expand sales of German products on the Hungarian domestic market. The Hungarian government is clearly interested in the construction of motor roads that would link to the National Motorways system; this work would lead to a natural increase in demand for road construction equipment, to expansion of the output of cement plants and a host of economic linkages of benefit to both nations. The maturing of the Hungarian industrial scene favours construction of processing plants for the country’s available minerals. Discussions are already underway regarding investment in a light-metals refinery that would produce alumina and raw aluminium for domestic consumption and for export.

Berliner Morgenpost, Sunday, 1 April 1945

The recently-approved revised pay schedule for the armed forces goes into effect. The increased compensation for military personnel is part of the Government’s plan to increase retention of trained personnel in the ranks.


Lübecker Nachrichten, Monday, 2 April 1945

The corvettes Bussard and Grief were laid down yesterday at the Flensburger Schiffsbaugesellschaft; these are the first naval vessels to be constructed at this newly-expanded shipyard.


Die Rheinpfalz, Tuesday, 3 April 1945

Böttcherei Leifeld of Ahlen has introduced a new line of machine tools for metal forming. Known as metal spinning, it permits several operations to be performed in one set-up, at less cost than other metal forming techniques. Objects can be built using one piece of material to produce parts without seams.