The Rise of the Third Reich

"Ludwig, do we really want to transfer key technologies for the production of Mercedes-Benz cars and Fokker aircraft to the Russians?"

In the best suite in the National Hotel in Moscow, little Rudolf had fallen asleep, and Paulus went to the German Embassy - where he would send telegrams to Berlin and Riga to report that he was safe - and now only Hess was left Mann and Chloe ate delicious Russian snacks while discussing Natalie's questions in the car.

"This is necessary!" Hersman said, "If we are unwilling to transfer, someone else will transfer it in a few years."

That other person is the United States. Historically, Germany first transferred technology and equipment to the Soviet Union, allowing the Soviet Union to gain entry. But it was the Americans who really helped the Soviet Union embark on the fast track to industrialization!

After the Genoa Conference, the relationship between Britain and France and the Soviet Union was relatively cold, Germany and the Soviet Union began their honeymoon period, and the relationship between the United States and the Soviet Union was second only to the Soviet Union and Germany. Although the United States and the Soviet Union did not have diplomatic relations, the United States helped the Bolsheviks greatly in the Siberian intervention war and the subsequent Soviet-Russian revolution. Therefore, "people-to-people exchanges" between the United States and the Soviet Union were very active throughout the 1920s. During the New Economic Policy period, the United States also invested heavily in the Soviet Union.

During the Great Depression, the United States even opened its door to provide complete sets of technology and equipment to the Soviet Union! Including the famous Gorky Automobile Plant, Moscow Automobile Plant, Yarosallf Automobile Plant and Moscow Automobile Assembly Plant, they are either purchased entirely from the United States (the American factories were bought, dismantled and shipped back to the Soviet Union), or American equipment was purchased for re-equipment - —These factories were the main force of the Soviet automobile industry before World War II!

The most important tank production base in the Soviet Union before World War II, the Stalingrad Tractor Factory was imported from the United States in its entirety. The Kharkiv Tractor Factory used a large amount of American equipment (some of which were German), and Americans served as the chief engineers of the construction. Without the help of the United States, the Soviet Union's tank flood during World War II would have been severely reduced. .

In addition, the Soviet aviation industry, especially aircraft engines, also received a large amount of technology transfer and parts supply from the Americans.

The only thing that the Americans did not allow the Soviet Union to get what they wanted was the transfer of naval shipbuilding technology. Whether it is technology transfer, equipment transfer, or the purchase of finished products, the Americans strictly controlled it to prevent the Soviet Union from acquiring the ability to build large surface ships.

"I think we can also add the shipbuilding industry..." Hessman said, "I think the Soviet Union will need our help to improve the technology of their major shipyards. If possible, I want to help the Soviet Union build a strong shipbuilding industry around 1940." Naval fleet of battleships and aircraft carriers.”

In Hessman's impression, Stalin was fascinated by large surface ships. Before World War II, he started construction of four 60,000-ton super ships such as "Soviet Ukraine", "Soviet Belorussia" and "Soviet Russia". Battleship!

Unfortunately, due to the German invasion, these battleships were not actually built. However, Hessmann quite hopes that the Soviets can equip these four super battleships in 1941 or 1942...

"Ludwig, do you want to unite with the Soviet Union to attack the British Isles?" Chloe frowned. She couldn't imagine the scene of the red flag being planted at Buckingham Palace.

"Or the United States!" Hersman shrugged. "The red flag is planted in the White House! Such a scene must be shocking, right? It may also be Japan... If the Soviet Union has battleships and aircraft carriers, they are most likely to be deployed in Vladivostok."

"Sea what?"

"Uh, it's Vladivostok." Hersman scratched his head. No one in Europe knew the Chinese name "Vladivostok".

"Their Pacific Fleet?"

"Otherwise, where should we put it? The Baltic Sea?" Hessman chuckled. "This will make the British jump." He waved his hand, "But it's none of our business. The Soviet Union doesn't need battleships if it wants to fight with us. and aircraft carriers.”

"But it will take a Fokker and a Mercedes-Benz," Chloe said in a worried tone. “The Red Army might march into Berlin in a Mercedes!”

"But we still have to cooperate with them," Hersman sighed. "We need the resources and gold of the Soviet Union. This is the only way for the Keynes Plan to be implemented."

According to the "Keynes Plan", starting in 1926, Germany would deliver coal, cars, aircraft and ships to the Allied Powers. But this is free and cannot be exchanged for pounds or resources.

Not to mention how the German government will pay the manufacturers that produce these things - it seems that it can only rely on issuing bonds - but the various resources required to produce those products are a big problem that can kill Germany.

Germany does not have much foreign exchange to import, and it is difficult to achieve a surplus by exporting large amounts to the West. People are no longer happy to give things away for free, and dumping industrial products will definitely lead to a trade war.

"Only the Soviet Union!" Hersman said. "We need to obtain oil, non-ferrous metal ores and food from the Soviet Union. We may also need to obtain some gold from the Soviet Union to import Swedish iron ore, American cotton and Australian wool."

This is an economic cycle that is barely functioning. Germany first used the pounds borrowed from the UK to invest in increasing production capacity - the German government borrowed the money as a guarantee for the issuance of marks, and then lent the marks to large domestic companies for investment. This is the consequence of Germany losing its monetary sovereignty! The only use of these pounds after entering Germany was to lie in the vaults of the Reichsbank as reserves for the issuance of marks. Without them, the Deutsche Mark is useless paper and cannot be used for investment.

After Germany used "pound capital" to increase its industrial production capacity, it then handed over the produced products to the Allied Powers as compensation. At the same time, the German government will collect debts lent to large companies to pay for the purchase of "compensation products."

In this way, the Allied Powers obtained "reparations", German industry obtained the funds and markets needed for development, and Britain controlled Germany by issuing loans, while also consolidating the status of the pound, while the German government owed a huge debt and could not pay it back. Clear the debt...

For such a cycle to be sustainable, two prerequisites are needed: first, the German government’s finances must have a surplus to slowly repay its debt; second, Germany’s trade projects cannot have large deficits—that is to say, Germany It is necessary to obtain enough resources through Soviet-German cooperation to meet normal domestic needs and the consumption of producing "compensation items". At the same time, it is necessary to reserve as much materials as possible just in case.

"We are able to maintain it now, on the one hand, by borrowing money in pounds; on the other hand, by Soviet resources." Hersman was silent for a while, "In the long term, this cycle is unsustainable, but in the short term it must be maintained. "

Historically, Germany relied on U.S. dollar borrowings and Soviet resources to sustain itself. Now the U.S. dollars have been replaced by British pounds. However, the "Keynes Plan" was still better than the "Dawes Plan". It promoted German industry more and theoretically allowed Germany to pay off its reparations. Moreover, Germany's war reparations were calculated in pounds, and if the pound collapsed...

"Beginning in 1926, we will have to pay compensation, starting with 100 million pounds (equivalent to just over 2 billion marks), and then increasing year by year until 200 million pounds of goods per year." Hersman said, "If we cannot start from If the Soviet Union obtains enough resources, our economy will collapse due to trade deficit! So what I am worried about now is not that the Soviet Union will become stronger through such cooperation, but that this business will be robbed by the Americans. ...So, we must give conditions that the United States cannot give!”

Hessman thought: When the Great Depression comes, there will be problems with both the pound borrowing and the Soviet resources. At that time, Mr. Hitler will have to come to power to default on the debt.

At this moment, the phone in the guest room suddenly rang. Hersman walked over and picked up the receiver. He thought in Russian with a Georgian accent: "Is it Ludwig? I'm Stalin!"

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