German rearmament

• 1. Weimar Republic Violations

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  In May 1921, the French government forced the official banning of the Freikorps paramilitary groups that had operated with tacit support from the Weimar Republic. These units, often deployed to suppress communist uprisings, grew rapidly under Defense Minister Gustav Noske before Hans von Seeckt became Chief of Army Command in March 1920 and began limiting their funding. Seeckt viewed the Freikorps as a sign of rebellion and sought to replace them with more controlled forces. When the Freikorps were banned, he formed the Black Reichswehr, an extra-legal paramilitary formation secretly part of the German military. This group enjoyed the support of Chancellor Joseph Wirth and grew to an estimated strength between 50,000 and 80,000 men. The Black Reichswehr never saw active combat but was disbanded in late 1923 following the failed Küstrin Putsch. Units of the Citizens' Defense were also formed in early 1919 to provide quick reinforcements against leftist revolutionary forces through civilian recruitment. The government supplied these groups until repeated demands by the Inter-Allied Military Commission of Control led to a ban on the 24th of May 1921. Many former members of these banned groups joined proto-Nazi organizations after their dissolution.

• 2. Soviet Cooperation And Training

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  Secret cooperation between the German military and Soviet Russia began in 1921 when the Ministry of Defence established a Special Section R for the purpose. General Hans von Seeckt approved this initiative while Chancellor Joseph Wirth remained aware of its existence. In November 1922, shortly after the Treaty of Rapallo was signed, the Soviet government and Junkers Aircraft Company began working together to build aircraft for Germany. Starting in 1924, German pilots received secret training at the Lipetsk fighter-pilot school using Junkers, Heinkel, and Dornier aircraft. The cooperation expanded in 1926 to include poison gas manufacture and the establishment of a tank training school near Kazan. Despite these efforts, German companies hesitated to invest heavily in projects within the Soviet Union, causing the ventures to progress slowly. Government financing for these activities was hidden under phony budget headings and monitored by a high-ranking committee. This collaboration provided fundamental tactical and technical knowledge that would later prove essential for rebuilding the German armed forces despite Versailles restrictions.

• 3. Secret Armament Programs

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  On the 29th of September 1928, the First Armament Program was approved by the Chief of Army Command and adopted by the Müller cabinet on the 18th of October. This program aimed to create emergency armaments for a 16-division army with limited weapons stockpiles by 1932 at a cost of 350 million Reichsmarks. The original plan for a 21-division army had been rejected due to economic reasons. The navy received around 7 million Reichsmarks annually while the army took the lion's share of funding. A State Secretaries' Committee consisting of representatives from the Bureau of Auditors, Defense Ministry, and Finance Ministry approved the budget without Reichstag oversight. Results remained unimpressive; by spring 1931, the army possessed only ten tanks still undergoing testing. No anti-tank guns or two-centimeter machine guns had moved beyond development phase. Wilhelm Groener became Minister of Defense in January 1928 and gained momentum for the effort through his political and military expertise. The Second Armament Program formed the basis for rearmament in Nazi Germany when adopted in spring 1932. At a cost of 484 million Reichsmarks, this plan established a 21-division army plus equipment and ammunition. It included an air force receiving 110 million RM for 150 aircraft including reconnaissance planes, fighters, and bombers.

• 4. Nazi Financing Mechanisms

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  Hjalmar Schacht replaced Reichsbank President Hans Luther after Luther refused to extend credit beyond one hundred million Reichsmarks for rearmament. Schacht created Metallurgische Forschungs-G.m.b.H., a shell company that issued short-term treasury notes functioning as concealed money. By 1938, this company sold over 12 billion Reichsmarks worth of Mefo bills to fund rearmament efforts. These bills allowed the Nazi regime to conceal government debt from the international community while providing unlimited credit for their program. In another instance of financial manipulation, Schacht exploited the American international exchange system to create arbitrage opportunities. He told the American government that German corporations could not pay interest on American denominated debt due to lack of foreign exchange. This claim was false since Germany had sufficient resources but chose to use them for rearmament instead. The German government defaulted on payments to decrease bond values on American markets where they repurchased bonds at fractions of face value. They then exchanged these dollar-denominated debts back into Reichsmarks to fund activities abroad. This scheme allowed German exporters to purchase debt with foreign reserves and sell it back to issuers for large discounts. The resulting foreign exchange funded rearmament programs including purchases of American plane parts.

• 5. Technological Innovation And Testing

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  The Spanish Civil War between 1936 and 1939 provided an ideal testing ground for new weapons produced by German factories during rearmament years. Many aeronautical bombing techniques like dive bombing were tested by Condor Legion expeditionary forces against Republican Government forces on Spanish soil. Generalíssimo Francisco Franco granted permission for these operations despite Hitler's insistence that his long-term designs remained peaceful. This strategy became known as Blumenkrieg or Flower War. Evidence appeared in a January 1937 speech prior to the outcry over bombing of Basque city Guernica, which Luftwaffe called Operation Rügen. Walter Dornberger began developing liquid fuel rockets for military purposes in 1930, technology not mentioned in Versailles Treaty restrictions. Under Nazi rule he later became involved in V2 rocket program development. Shipyards created branches designing aircraft while other companies diversified production patterns. Advanced technological improvements emerged especially within aeronautics field. Work by labor historians determined many German workers identified passionately with weapons they built during 1930s. An instruction manual given to tank crews stated: For every shell you fire your father has paid 100 Reichsmarks in taxes. The Tiger tank cost 800,000 Reichsmarks total plus 300,000 hours of labor requiring thirty thousand people to give entire week wages.

• 6. American Corporate Involvement

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  Some 150 American corporations participated in German rearmament supplying everything from raw materials to patent knowledge through complex business networks. Resources provided included synthetic rubber production technology from DuPont and Standard Oil of New Jersey. Communication equipment came from ITT while computing machines were supplied by IBM. Aviation technology developed Junkers Ju 87 bomber used fuel from Standard Oil of New Jersey and Standard Oil of California. Military vehicles were produced by Ford and General Motors. Funding arrived through investment brokering services and loans by banks like Union Banking Corporation. Collaboration agreements established production facilities and delivered raw materials to German entities including MEFO front companies. DuPont owned stocks in IG Farben and Degussa AG who controlled Degesch producer of Zyklon B. This involvement stemmed not only from financial gain but also ideological motivations in some cases. Irénée du Pont served as director and former president of DuPont while supporting Nazi racial theory and promoting eugenics. A complex network of joint ventures cooperation agreements cross-ownership between American and German corporations facilitated this extensive participation throughout the 1930s.

• 7. International Appeasement And Reaction

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  Hitler announced open rejection of military restrictions set forth by Treaty of Versailles on the 16th of March 1935 alongside reintroduction of conscription. European states that fought Germany in World War I reacted primarily through attempts to appease Hitler rather than intervene effectively. The failure of Allied national governments to confront earlier rearmament is often discussed within context of 1930s appeasement policies. George F. Kennan stated such firmness at time of Rhineland reoccupation on the 7th of March 1936 would probably have yielded better results than later actions. Some academics argue anything causing Hitler to overreach less quickly might condemn Europe to slower growing Nazi empire leaving time for Holocaust later. Others suggest firmness could enforce greater circumspection on Nazi regime causing it to proceed more slowly with actualization timetable. By September 1938 Hitler boasted in Berlin Sportpalast after giving orders to rearm Wehrmacht he could openly admit world had not seen similar extent before. Rearmament program increased size of German officer corps while organizing growing army became primary task until beginning of World War II on the 1st of September 1939. Count Johann von Kielmansegg later said very involved process of outfitting 36 divisions kept him and colleagues from reflecting on larger issues.