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Leith-Ross recruited shrewd bankers, statisticians, economists and experts in international law and an army of over administrative workers and civil servants for his new ministry.
They also put together the Statutory List � sometimes known as the 'blacklist' � of companies known to regularly trade with, or who were directly financed by, Germany.
In mid-September the Ministry published a list of pro-German persons and companies throughout the world with whom British merchants and shipowners were forbidden to do business, subject to heavy penalties. When shipments from these companies were detected they were usually made a priority for interception. One lesson that was learnt from World War I was that although the navy could stop ships on the open seas, little could be done about traders who acted as the middleman, importing materials the Nazis needed into their own neutral country then transporting it overland to Germany for a profit.
Diplomats from the Scandinavian nations, as well as Italy and the Balkan countries, who were also major suppliers to Germany, were given quota lists of various commodities and told they could import these amounts and no more, or action would be taken against them. A ship stopping at a Control port raised a red and white flag with a blue border to signify that it was awaiting examination. At night the port authorities used signal lights to warn a skipper he must halt, and the flag had to stay raised until the ship was passed.
Arrangements for boarding and examining ships were made in the port 'Boarding Room', and eventually a team of 2 officers and 6 men set out in a fishing drifter or motor launch to the ship. After apologising to the captain for the trouble, they inspected the ship's papers, manifest and bills of lading. At the same time the wireless cabin was sealed so no signals could be sent out while the ship was in the controlled zone.
After satisfying themselves that the cargo corresponded with the written records, the party returned ashore and a summary of the manifest, passengers, ports of origin and destination was sent by teleprinter to the Ministry. When the ministry's consent was received, the ship's papers were returned to the captain along with a certificate of naval clearance and a number of special flags � one for each day � signifying that they had already been checked and could pass other patrols and ports without being stopped.
If the Ministry found something suspicious, the team returned to examine the load. If part or all the cargo was found suspect the ship was directed to a more convenient port where the cargo was made a ward of the Prize Court by the Admiralty Marshall who held it until the Court sat to decide the outcome, which could include returning it to the captain or confirming its confiscation to be sold at a later time and the proceeds placed into a prize fund for distribution among the fleet after the war.
A disgruntled captain could dispute the seizure as illegal, but the list of banned goods was intentionally made broad to include "any goods capable of being used for or converted to the manufacture of war materials". In the first four weeks of the war, official figures stated that the Royal Navy confiscated , tons of contraband and the French Marine Nationale , tons. The Germans responded with their own counter-blockade of supplies destined for Allied ports and published a contraband list virtually identical to the British list.
Germany began by targeting the Norwegian, Swedish and Finnish pulp boats, sinking several before Sweden shut down its pulp industry and threatened to stop sending Germany iron ore unless the attacks ceased.
Up to 21 September over British and 1, neutral ships had been detained, with 66 of them having cargo confiscated. In many cases these cargoes proved useful for the Allies' own war effort � Contraband Control also intercepted a consignment of 2 tons of coffee destined for Germany, where the population had long been reduced to drinking substitutes not made from coffee beans at all.
At the beginning of the war, Germany possessed 60 U-boats, but was building new vessels quickly and would have over by the summer of While Britain could call on impressive flotillas of battleships and cruisers for direct ship to ship confrontations, these heavy vessels were of limited use against U Boats.
Britain now retained less than half the total of destroyers she had at the height of the battle in when the U-boats almost forced Britain to consider surrender. Orders were immediately placed for 58 of a new type of small escort vessel called the corvette which could be built in 12 months or less. Motor launches of new Admiralty design were brought into service for coastal work, and later, a larger improved version of the corvette, the frigate was laid down.
To free up destroyers for oceangoing and actual combat operations, merchant ships were converted and armed for escort work, while French ships were also fitted with ASDIC sets which enabled them to detect the presence of a submerged U Boat. The massive expansion of ship building stretched British shipbuilding capacity � including its Canadian yards � to the limit. The building or completion of ships that would not be finished until after was scaled back or suspended in favour or ships that could be completed quickly, while the commissioning into the fleet of a series of four new aircraft carriers of the Illustrious class , ordered under an emergency review in and which were all finished or near completion, was delayed until later in the war in favour of more immediately useful vessels.
Great efforts went into finishing the new battleships King George V and Prince of Wales before the Bismarck could be completed and begin attacking Allied convoys, while the French also strained to complete similarly advanced battleships, the Richelieu and the Jean Bart by the autumn of to meet the Mediterranean threat of two Italian battleships nearing completion.
To bridge the gap during the first crucial weeks while the auxiliary anti-submarine craft were prepared, aircraft carriers were used to escort the numerous unprotected craft approaching British shores.
However this strategy proved costly; the new carrier Ark Royal was attacked by a U-boat on 14 September, and while it escaped, the old carrier Courageous was not so lucky, being sunk a few days later with heavy loss of life. Ships leaving port could be provided with a limited protective screen from aircraft flying from land bases, but at this stage of the conflict, a ' Mid-Atlantic Gap ', where convoys could not be provided with air cover existed.
In the first week of the war, Britain lost 65, tons of shipping; in the second week, 46, tons were lost, and in the third week 21, tons. By the end of September , regular ocean convoys were in operation, outward from the Thames and Liverpool, and inwards from Gibraltar, Freetown and Halifax. To make up the losses of merchant vessels and to allow for increased imports of war goods, negotiations began with neutral countries such as Norway and the Netherlands towards taking over their freighters on central government charter.
Elsewhere, the blockade began to do its work. From Norway, across and down the North Sea, in the Channel and throughout the Mediterranean and Red Sea, Allied sea and air power began slowly to bleed away Germany's supplies. In the first 7 days of October alone, the British Contraband Control detained, either by confiscating neutral cargoes or capturing German ships, 13, tons of petrol, 2, tons of sulphur, 1, tons of jute the raw material from which hessian and burlap cloth is made , tons of textiles, 1, tons animal feed, 1, tons oils and fats, 1, tons of foodstuffs, tons oilseeds, tons copper, tons of other ores and metals, tons of phosphates, tons of timber and various other quantities of chemicals, cotton, wool, hides and skins, rubber, silk, gums and resins, tanning material and ore crushing machinery.
Two months into the war, the Ministry reintroduced the 'Navicert' Navi gational Cert ificate , first used to great effect during World War I. This system was in essence a commercial passport applied to goods before they were shipped, and was used on a wide scale. Possession of a Navicert proved that a consignment had already been passed as non-contraband by His Majesty's Ambassador in the country of origin and allowed the captain to pass Contraband Control patrols and ports without being stopped, sparing the navy and the Ministry the trouble of tracking the shipment.
Violators, however, could expect harsh treatment. They could be threatened with Bunker Control measures, refused further certification or have their cargo or their vessel impounded. Conversely, neutrals who went out of their way to co-operate with the measures could expect 'favoured nation' status, and have their ships given priority for approval. Italy, though an ally of Hitler, had not yet joined the war, and its captains enjoyed much faster turnarounds by following the Navicert system than the Americans, who largely refused to accept its legitimacy.
Passenger ships were also subject to Contraband Control because they carried luggage and small cargo items such as postal mail and parcels, and the Americans were particularly furious at the British insistence on opening all mail destined for Germany.
On 30 December the Manhattan , carrying tons of small cargo, sailed from New York to deliver mail to Italy, but was stopped six days later by a British destroyer at Gibraltar. Although the captain went ashore to make a furious protest to the authorities with the American Consulate, the ship was delayed for 40 hours as British Contraband Control checked the records and ship's manifest, eventually removing bags of mail addressed to Germany.
In the U. On 22 January the UK ambassador was handed a note from the State Department calling the practice 'wholly unwarrantable' and demanding immediate correction. But despite the British Foreign Office urging the Ministry of Economic Warfare to be cautious for fear of damaging relations with the US, the British claimed to have uncovered a nationwide US conspiracy to send clothing, jewels, securities, cash, foodstuffs, chocolate, coffee and soap to Germany through the post, and there was no climbdown.
From the war's beginning, a steady stream of packages, many marked Gruss und Kuss "greetings and kisses! The British said that, of 25, packages examined in three months, 17, contained contraband of food items as well as cash in all manner of foreign currency, diamonds, pearls, and maps of "potential military value.
During this period, the Italian Lati Airline , flying between South America and Europe was also used to smuggle [31] small articles such as diamonds and platinum, in some cases, concealed within the airframe, until the practice was ended by the Brazilian and US governments and the airline's assets in Brazil confiscated after the British intelligence services in the Americas engineered a breakdown in relations between the airline and the Brazilian government.
The US travel agencies were eventually closed down along with the German consulates and information centres on 16 June During the early months of the war�the Phoney War �the only place where there was substantial fighting was at sea. This included 28 million US gallons , m 3 of petrol and enough animal hides for 5 million pairs of boots, and did not take account of the loss to Germany from goods that had not been shipped at all for fear of seizure.
German preparations to counter the effects of the military and economic war were much more severe than in Britain. For months previously, all able-bodied people in cities had by law to carry out war work such as filling sandbags for defenses and air-raid shelters, and it was now made an offense to ask for a raise in salary or to demand extra pay for overtime.
In time it would lead to the death penalty for such crimes as forging food coupons and protesting against the administration. Shirer recorded in his diary on 15 September that the blockade was already having a direct effect. Germany now looked to Romania for a large part of the oil she needed and to Soviet Union for a wide range of commodities.
In fact, apart from allowing Hitler to secure his eastern borders and annihilate Poland, the Nazi-Soviet Pact brought Germany considerable economic benefits. As well as providing refueling and repair facilities for German U-boats and other vessels at its remote Arctic port of Teriberka , east of Murmansk , the Soviets � 'Belligerent Neutrals' in Churchill's words � also accepted large quantities of wheat, tin, petrol and rubber from America into its ports in the Arctic and Black Sea and, rather than transport them over the entire continent, released identical volumes of the same material to Germany in the west.
From the outset, although they had formerly been hated enemies, large-scale direct trade took place between the two countries because both were able to offer something the other wanted. By the end of October the Soviets were sending large quantities of oil and grain in return for war materials such as fighter aircraft and machine tools for manufacturing in a deal valued at million Reichmarks a year.
The Germans maintained an aggressive strategy at sea in order to press home their own blockade of the Allies. Lloyd's List showed that by the end of they had sunk ships by U-boat, air attack, or by mines. These losses included British and 12 French vessels, but also demonstrated the disproportionate rate of loss by neutral nations.
Norway, a great seafaring nation since the days of the Vikings had lost almost half its fleet in World War I, yet now possessed a merchant navy of some 2, ships, with tonnage exceeded only by Britain, the US, and Japan. They had already lost 23 ships, with many more attacked and dozens of sailors killed, while Sweden, Germany's main provider of iron ore, had lost 19 ships, Denmark 9, and Belgium 3.
Churchill was endlessly frustrated and bemused by the refusal of the neutrals to openly differentiate between the British and German methods of waging the sea war, and by their determination to maintain pre-war patterns of trade, but stopped short of condemning them, believing that events would eventually prove the Allies to be in the right. He commented;. The neutral commerce which Churchill found most perplexing was the Swedish iron ore trade. Churchill considered this to be the 'greatest Commercial Fishing Boats For Sale New Zealand Tracking impediment to the blockade', and continually pressed for the mining of the Skjaergaard to force the German ships to come out into the open seas where Contraband Control could deal with them, but the Norwegians, not wishing to antagonise the Germans, steadfastly refused to allow it.
Even so, by early October the Allies were growing increasingly confident at the effectiveness of their blockade and the apparent success of the recently introduced convoy system. A convoy of 15 freighters arrived in British ports unscathed from Canada bringing half a million bushels of wheat, while in France more important ships arrived from Halifax in another convoyed group. The French claimed that of 30 U-boats sent out in Germany's first major offensive against Allied shipping, a third had been destroyed, and Churchill declared that Britain had seized , more tons of contraband than was lost by torpedoing.
Neutral ships were warned against joining Allied convoys, Scandinavian merchants were ordered to use the Kiel Canal to facilitate the German's own Contraband Control and the US City of Flint , which had rescued survivors of the Athenia became the first American ship captured as prize of war by the Germans, although the episode proved farcical and the ship was eventually returned to its owners. Hitler's 'secret weapon' of the time was the magnetic mine. They ranged from small lb 91 kg mines dropped dozens at a time to large one-ton versions dropped by parachute on shoal bottoms which were almost impossible to sweep, equipped with magnetic triggers activated by a steel hull passing above.
Over the next few days many ships of all sizes blew up in waters close to shore, mostly by explosions under or near the keels although the waters had been swept. Six went down in the mouth of the Thames , and the new cruiser Belfast was badly damaged at the mouth of the Firth of Forth.
The British urgently set to work to find a defence against the magnetic mine and began preparations to recreate the Northern Barrage , established between Scotland and Norway in as a safeguard against increasing U-boat attacks. Evidence that at least part of Germany's attack was with illegal floating mines came when a British freighter was sunk at anchor off an east coast port, when two mines came together and exploded off Zeebrugge , and when a large whale was found near four German mines on the Belgian coast with a huge hole in its belly.
Eventually, a method of de-magnetising ships, known as degaussing was developed, which involved girding them in electric cable, and was quickly applied to all ships. Other means of minesweeping were also developed, whereby the mines were exploded by patrolling ships and aircraft fitted with a special fuse provocation apparatus.
From early December the British began preventing German exports as a reprisal for the damage and loss of life caused by the German magnetic mines. Angry at the British export ban, the German Government accused the British of having deliberately sunk the Simon Bolivar , lost on 18 November with the loss of people, including women and children. They advised neutrals to shun British waters and trade with Germany, declaring that because of the defensive minefields and contraband control, British waters were not mercantile fairways subject to the Hague Convention regulating sea warfare, but military areas where enemy ships of war must be attacked.
Prompted by Germany, all the neutrals protested, but the overall effect was to slow the flow of neutral shipping to a standstill. The Nazi leadership later grew bullish at the apparent success of the mine strategy and admitted they were of German origin, stating that "our objectives are being achieved. In Berlin, William Shirer recorded in his diary that there were signs of a rush to convert currency into goods to guard against inflation, but that although the blockade now meant that the German diet was very limited, there was generally enough to eat and people were at that point rarely going hungry.
However, it was no longer possible to entertain at home unless the guests brought their own food and though restaurants and cafes still traded they were now very expensive and crowded.
Coal was now very difficult to obtain however, and although sufficient crayfish were imported from the Danubian nations to allow an enjoyable festive meal, people went cold that Christmas. In fact, Germany produced large volumes of very high quality coal in the Saar region, but much of it was now being used to produce synthetic rubber , oil and gas. There were reports that Germany, which badly needed to raise foreign currency had been trying to export bicycles and cars to adjacent countries without tyres.
The average German worker worked for 10 hours a day 6 days a week; but although he may have had enough money to buy them, most items were not available, and shops displayed goods in their windows accompanied by a sign saying 'Not For Sale' [18] [33].
Such was the belief in the supreme strength of the Royal Navy that some thought that the blockade might now be so effective in restricting Germany's ability to fight that Hitler would be forced to come to the negotiation table. Up to the end of February about 70 had tried to get away, but very few reached Germany.
Most were sunk or scuttled, and at least eight foundered on rocks trying to negotiate the way down the unfamiliar and hazardous Norwegian coast. The Germans tended to prefer to sink the ships themselves rather than allow the Allies to capture them, even at risk to those aboard.
Such was the case of the Columbus , Germany's third-largest liner at 32, tons, and the Glucksburg , which ran herself ashore on the coast of Spain when sighted. Another, the 'Watussi', was sighted off the Cape by the South African Air Force and the crew immediately set her on fire, trusting the aircrew to bring aid to the passengers and crew. That winter was harsh, causing the Danube to freeze and heavy snow slowed rail transport, stalling Germany's grain and oil imports from Romania.
The UK, having deprived Spain of her exports of iron ore to Germany entered into a deal to buy the ore instead via the Bay of Biscay , along with copper, mercury and lead to enable the Spanish, who were on the verge of famine, to raise the foreign exchange she needed to buy grain from South America to feed her people.
Despite newsreels showing the effectiveness and power of the Nazi Blitzkrieg , which even her enemies believed, Germany was unable to afford a prolonged war. In order to buy from abroad without credit or foreign exchange cash , a nation needed goods or gold to offer, but the British export ban prevented her from raising revenue.
In World War I, even after two years of war Germany still had gold reserves worth 2. In February Karl Ritter , who had brokered huge pre-war barter agreements with Brazil, visited Moscow and, despite finding Stalin an incredibly fierce negotiator, an increased trade deal was eventually signed between Germany and Russia.
Although the Germans had been able to find numerous ways of beating the blockade, shortages were now so severe that on 30 March , when he was gearing up for his renewed Blitzkrieg in the west, Hitler ordered that delivery of goods in payment to Russia should take priority even over those to his own armed forces.
After the fall of France Hitler, intending to invade Russia the following year, declared that the trade need continue only until the spring of , after which the Nazis intended to take all they needed. As more U-boats were commissioned into the German navy, the terrible toll on neutral merchant shipping intensified.
After the first 6 months of the war, Norway had lost 49 ships with men dead; Denmark 19 ships for sailors killed and Sweden 32 ships for men lost. In early March, Admiral Raeder was interviewed by an American correspondent from NBC regarding the alleged use of unrestrained submarine warfare. Raeder maintained that because the British blockade was illegal, the Germans were entitled to respond with 'similar methods', and that because the British government had armed many of its merchant ships and used civilians to man coastal patrol vessels and minesweepers, any British ship sighted was considered a legitimate target.
Raeder said that neutrals would only be liable to attack if they behaved as belligerents i. The paradox with this argument � as the neutral countries were quick to point out � was that Germany was benefiting from the very same maritime activity they were trying so hard to destroy. On 6 April, after the sinking of the Norwegian mail steamer Mira , the Norwegian Foreign Minister Professor Koht, referring to 21 protests made to belligerents about breaches to her neutrality, made a statement about the German sinking of Norwegian ships by U-boats and aircraft.
A few hours later another ship, the Navarra was torpedoed without warning, with the loss of 12 Norwegian seamen, by a U-boat which did not stop to pick up survivors.
Despite impressive statistics of the quantities of contraband captured, by the spring of the optimism of the British government over the success of the blockade appeared premature and a feeling developed that Germany was managing to maintain and even increase imports. Although the MEW tried to prevent it, neighbouring neutral countries continued to trade with Germany. In some cases, as with the crucial Swedish iron ore trade, it was done openly, but elsewhere, neutrals secretly acted as a conduit for supplies of materials that would otherwise be confiscated if sent directly to Germany.
A third of Dutchmen derived their livelihood from German trade, and Dutch traders were long suspected of acting as middle men in the supply of copper, tin, oil and industrial diamonds from America. Prominent in these purchases were cotton, petrol, iron, steel and copper � materials essential for waging war.
While some increases may have been inflationary, some from a desire to build up their own armed forces or to stockpile reserves, it was exactly the type of activity the Ministry was trying to prevent. American companies were prevented from openly supplying arms to belligerents by the Neutrality Acts, an amendment was made on 21 September in the form of Cash and Carry but no restrictions applied to raw materials. But by far the biggest hole in the blockade was in the Balkans.
Together Yugoslavia , Romania and Bulgaria annually exported to Germany a large part of their surplus oil, chromium, bauxite, pyrites , oil-bearing nuts, maize, wheat, meat and tobacco. Germany also made big purchases in Greece and Turkey and viewed the region as part of its supply hinterland. Before the war, Britain recognised Germany's special interest in the region and took a very small percentage of this market, but now, via the United Kingdom Commercial Corporation they used their financial power to compete in the Balkans, the Netherlands and Scandinavia, underselling and overbidding in markets to deprive Germany of goods, although Germany was so desperate to maintain supplies that they paid considerably over the normal market rate.
As elsewhere, Germany paid in kind with military equipment, for which they were greatly aided with their acquisition of the Czech Skoda armaments interests. Germany was almost entirely dependent on Hungary and Yugoslavia for bauxite, used in the production of Duralumin , a copper alloy of aluminium critical to aircraft production.
The British attempted to stop the bauxite trade by sending undercover agents to blast the Iron Gate , the narrow gorge where the Danube cuts through the Carpathian Mountains by sailing a fleet of dynamite barges down the river, but the plan was prevented by Romanian police acting on a tip-off from the pro-German Iron Guard. Romania's production was about equal to that of Ohio , ranked 16th producer in the US, then a major oil-producing nation.
On 29 May it stopped sending its oil to Britain, and signed an arms and oil pact with Germany; Romania was soon providing half her oil needs. Britain was able to arrange alternative supplies with the Anglo-Iranian Oil Agreement , signed on 28 August According to The Economist , [ when?
This was during the phoney war, before the fighting on land and air had begun. The Prime Minister said that, while it was out of the question to purchase all exportable surpluses, concentration on certain selected commodities such as minerals, fats and oil could have a useful effect, and announced a deal for Britain to acquire the entire export surplus of whale oil from Norway.
Commercial agreements were negotiated with Spain, Turkey, and Greece, aimed at limiting material to Germany. Chamberlain also indicated that steps were being taken to stop the Swedish iron ore trade, and a few days later the Norwegian coast was mined in Operation Wilfred. But perhaps the most important measure taken at this time was the setting up of the Special Operations Executive SOE As Professor William MacKenzie recounts in his book The Secret History , the official government history of the organisation written in with access to SOE files later destroyed, but classified until , its origins go back to March following the German invasion of Czechoslovakia.
This Charter also defined the relationship of various organs of state including the security and police services with one another and initially the minister was the new Minister of Economic Warfare Hugh Dalton. Though very few people knew of it at the time, the new organisation, the earlier version of which carried out the attempt to dynamite the Iron Gate on the Danube, marked a new direction in the Economic War that would pay dividends later on, providing vital intelligence on potential strategic targets for the offensive bomber campaigns that came later in the war.
There were turf wars from time to time with SIS who did not want to risk sources being compromised by SOE sabotage of enemy targets. Shortly after the German invasion of the Low Countries and France, the British took the first tentative steps towards the opening of a strategic air offensive aimed at carrying the fight to Germany. The mining and manufacturing region of the Ruhr, often likened to the ' Black Country ' in the Midlands of England , was one of the world's greatest concentrations of metal production and processing facilities as well as chemical and textile factories; the Ruhr was also home to several synthetic oil production plants.
So much smog was produced by these industries that precision bombing was almost impossible. Germany established new airfields and U-boat bases all the way down the West Norwegian and European coasts. In early August Germans installed Dover Strait coastal guns. From early July the German air force began attacking convoys in the English channel from its new bases and cross-channel guns shelled the Kentish coast in the opening stages of the Battle of Britain.
On 17 August, following his inability to convince the British to make peace, Hitler announced a general blockade of the entire British Isles and gave the order to prepare for a full invasion of England codenamed Operation Sea Lion. On 1 August Italy, having joined the war, established a submarine base in Bordeaux. Its submarines were more suited to the Mediterranean , but they successfully ran the British gauntlet through the Straits of Gibraltar and joined the Atlantic blockade.
On 20 August Benito Mussolini announced a blockade of all British ports in the Mediterranean, and over the next few months the region would experience a sharp increase in fighting. Meanwhile, in Spain, which had still not recovered from her own civil war in which over one million died and which was in the grip of famine, General Francisco Franco continued to resist German attempts to persuade him to enter the war on the Axis side. Spain supplied Britain with iron ore from the Bay of Biscay, but, as a potential foe, she was a huge threat to British interests as she could easily restrict British naval access into the Mediterranean, either by shelling the Rock of Gibraltar or by allowing the Germans to lay siege to it from the mainland.
Although Spain could gain the restoration of the rock itself and Catalonia under French administration , Franco could see Britain was far from defeated and that British forces backed by its huge powerful navy would occupy the Canary Islands. Franco made excessive demands of Hitler which he knew could not be satisfied as his personal price for participation, such as the ceding of most of Morocco and much of Algeria to Spain by France.
American opinion was shocked at the fall of France and the previous isolationist sentiment, which led to the Neutrality Acts from onwards, was slowly giving rise to a new realism. Roosevelt had already managed to negotiate an amendment to the acts on 21 September , known as Cash and Carry , which though in theory maintained America's impartiality, blatantly favoured Britain and her Commonwealth. Under the new plan, weapons could now be bought by any belligerent providing they paid up front and took responsibility for delivery, but whereas Germany had virtually no foreign exchange and was unable to transport much material across the Atlantic, Britain had large reserves of gold and foreign currency, and while U-boats would be a threat, the likelihood was that her vast navy would ensure that the majority of equipment safely delivered to port.
The US now accepted that it needed to increase spending for its own defense, especially with the growing threat of Japan, but there was real concern that Britain would fall before the weapons were delivered. To help in the interim, Congress agreed to let Britain have a million mothballed First World War rifles, stored in grease with around fifty rounds of ammunition for each. But, following the British attack on the French fleet at Oran on 4 July to prevent it from falling into German hands, the British were proving they would do whatever was necessary to continue the fight, and Roosevelt was now winning his campaign to convince Congress to be even more supportive of Britain, with the Destroyers for Bases Agreement [39] and with the approval of a British order for 4, tanks.
Because of Germany's new proximity on the west European coastline and the decrease in shipping traffic, ships which would normally have been used for patrolling the high seas were diverted to more urgent tasks. The Navicert system was greatly extended, introducing compulsory Navicerts and ships' warrants in an attempt to prevent contraband being loaded in the first place.
The lost Dutch and Danish supplies of meat and dairy products were replaced by sources in Ireland and New Zealand. Canada held a whole year's surplus of wheat, while the U. Virtually all Dutch and Belgian ships not captured by the Germans joined the British merchant fleet, which together with the tonnage contributed by Norway and Denmark added about one-third to Britain's merchant marine, giving them a large surplus of vessels. To prevent the enemy gaining a route to acquire supplies, the occupied countries and the unoccupied Vichy French zone immediately became subject to the blockade, with severe shortages and extreme hardship quickly following.
Although the Ministry resisted calls that the embargo be extended to some neutral countries, it was later extended to cover the whole of metropolitan France , including Algeria, Tunisia and French Morocco. In course of the Battle Used Fishing Boats For Sale Dfw Tracking of France , the Germans captured 2, tanks of various types, including the heavy French Char B1 and British Matildas , 5, artillery pieces, , rifles and at least 4 million rounds of ammunition.
These were all available to be reconditioned, cannibalised or stripped down for scrap by the men of Organisation Todt. Despite attempts to transport it away before capture, occupied nations' gold reserves were also looted, along with huge numbers of artworks, many of which have never been recovered. Occupied countries were subjected to relentless, systematic requisitioning of anything Germany required or desired.
As time went on other miscellaneous items such as clothing, soap, park benches, garden tools, bed linen and doorknobs were also taken. The looted goods were taken to Germany mainly by trains, which themselves were mostly kept by Germany. Immediate steps were also taken towards the appropriation of the best of the conquered nation's food.
Decrees were proclaimed to force farmers to sell their animals and existing food stores, and while in the beginning a percentage of each year's crop was negotiated as part of the armistice terms , later the seizures became much more random and all-encompassing.
Next, a blatantly unfair artificial exchange rate was announced 1 reichmark to 20 francs in France and practically valueless 'Invasion Marks' brought into circulation, quickly inflating and devaluing the local currency. Later, German agents bought non-portable assets such as farms, real estate , mines, factories and corporations. The individual central banks were forced to underwrite and finance German industrial schemes, insurance transactions, gold and foreign exchange transfers etc.
The Germans also gained the occupied country's natural resources and industrial capacity. In some cases these new resources were considerable, and were quickly reorganized for the Nazi war machine. The earlier acquisitions of Austria and Czechoslovakia yielded few natural resources apart from 4m annual tons of iron ore, a good proportion of Germany's need. Austria's iron and steel industry at Graz , and Czechoslovakia's heavy industry near Prague , which included the mighty Skoda munitions works at Pilsen were, though highly developed, as heavily reliant on imports of raw materials as Germany's.
Norway provided good stocks of chromium , aluminum, copper, nickel and 1m annual pounds of molybdenum , the chemical element used in the production of high speed steels and as a substitute for tungsten. It also allowed them to continue to ship high quality Swedish iron ore from the port of Narvik, the trade which Britain tried to prevent with Operation Wilfred. In the Netherlands, they also acquired a large, high tech tin smelter in Arnhem , though the British, foreseeing the seizure, restricted the supply of raw tin leading up to the invasion, so the amount gained was only around a sixth of a year's supply 2, tons for Germany.
But by far the Fishing Boats For Sale Weymouth 80 biggest prize was France. German memories of the Versailles Treaty and of the turbulent years of reparations, food shortages and high inflation during the years immediately after World War I caused wealthy France to be treated as a vast material resource to be bled dry, and her entire economy was geared towards meeting Germany's needs. Under the armistice conditions she had to pay the billeting costs of the occupying garrison and a daily occupation indemnity of to million francs.
Germany's heavily overburdened railway network was reinforced with 4, French locomotives, and , over half of her freight cars. Unoccupied France Zone libre was left with only the rubber industries and textile factories around Lyon and its considerable reserves of bauxite, which because of the British blockade ended up in German hands anyway, giving her abundant supplies of aluminum for aircraft production. Along with the copper and tin she received from Russia, Yugoslav copper, Greek antimony and chromium and its Balkan sources, Germany now had sufficient supplies of most metals and coal.
From the beginning of the war, Germany experienced massive labour shortages and as time went by the occupied nations labour forces were virtually enslaved, either to work in factories to supply the Reich or sent to Germany to work in the factories or farms there.
The pre-war stockpiles of goods were running down and more ersatz substitutes were being used. In addition, Germany remained cut off by the blockade from oversea supplies, such as copper from Chile, nickel from Canada, tin and rubber from the East Indies , manganese from India, tungsten from China, industrial diamonds from South Africa and cotton from Brazil. Germany's Axis partner Italy was now also subject to blockade and, heavily reliant on her for coal, became a net drain, but Hitler's main problem was oil, around Besides the Rumanian supply, his own synthetic industry produced , tons per year, and another , came from Poland.
Russia was known to have enormous reserves of oil and gas but had chronically underdeveloped extraction systems, and though there was talk of German engineers going to reorganize them, it would take around two years before large quantities would begin flowing.
Hitler's best chance of beating the blockade was by knocking Britain out of the war. By far Britain's best weapon was her navy, which not only enforced the blockade, but also, despite the attempts of the U-boats and aircraft, continued to largely control the seas and keep her supplied with most of her needs. Her vast empire gave her formidable resources to draw on, excellent foreign credit facilities and gold reserves, and British rationing was nowhere as severe as in Germany.
The only rationing introduced immediately at the war's beginning was petrol. Bacon, butter and sugar followed on 8 January , meat on 11 March, with tea and margarine in July. It was not until U-boat successes in the Battle of the Atlantic began severely restricting convoys in late that rationing became more widespread, and even then many workers and children still had school meals and work canteens to supplement their rations, which made a significant difference to the amount of food they actually received.
Photographs of abundant fruit markets, butchers, fishmongers and grocers were placed in foreign publications to prove to American and Commonwealth readers that Britain was not, as the Nazis claimed, starving. Britain did rely on imports for a large proportion of its foodstuffs and, even with the widespread ' Dig for Victory ' campaign and the use of women farm workers, could only produce around two-thirds of its needs. Prior to the start of the Blitz bombing of population centres , which eventually killed over 40, civilians but which gave British industry the breathing space it needed to provide the fighter aircraft and ammunition to hold off invasion, docks on the south coast such as Southampton , Portsmouth and Plymouth were heavily damaged by German bombing raids; in response as much maritime traffic as possible was directed to the west and north.
On 16 August the Luftwaffe claimed to have destroyed Tilbury Docks and the Port of London , which normally handled a million tons of cargo per week. To the Nazis' glee, the skipper of one Brazilian freighter stated that southern Britain was finished and nothing could save her, [46] but although the damage was severe, ships from all parts of the Empire, South America and the Far East continued to unload food and war goods for Britain and to load cargoes for export.
With no passenger trade, and with all Scandinavian and continental sea traffic suspended, the port was far less busy than normal, but as many as 35, men still filled the warehouses with grain, tobacco, flour, tea, rubber, sugar, meat, wool, timber and leather every day throughout August British aircraft factories, led by the Minister of Aircraft Production, Lord Beaverbrook worked around the clock to greatly increase production and prevent a collapse of the RAF.
If she holds out, it will be his triumph. This war is a war of machines. It will be won on the assembly line". In an effort to force Britain into submission, the Luftwaffe concentrated its efforts on factories, ports, oil refineries and airfields.
By mid-August the attacks were becoming increasingly co-ordinated and successful. On 24 August, at the height of the battle, bombers sent to attack Fighter Command installations and oil refineries on the outskirts of London killed civilians in houses in central London through a navigational error, although many believed the bombing was deliberate. In spite of opposition from the air ministry, Churchill ordered the bombing of Berlin in retaliation, [48] and that night the German capital was bombed for the first time, although there were no fatalities.
When the bombing continued, the Nazi leadership ordered the Luftwaffe to begin bombing British cities on 7 September in the belief that this would damage civilian morale so much that Britain would sue for peace.
The Battle of Britain raged throughout August and September , but the Luftwaffe was unable to destroy the RAF to gain the air supremacy which was a prerequisite for the invasion.
Finally, on 12 October, the invasion was called off until spring , although British cities, notably London, Birmingham and Liverpool continued to be heavily bombed for another 6 months. Despite Germany's industrial gains, food was another matter. Even in peace, Europe was unable to feed itself, and although Germany now held two-fifths of the green fields of Europe, Germans found that despite decrees forcing farmers to sell their produce and livestock and outright requisition, in terms of food the occupied lands represented a net drain on their resources that could not be made good.
While Denmark , the 'Larder of Europe', produced massive quantities of bacon, eggs and dairy products, this was heavily dependent on imports of fertilizer from Britain. Before very long, livestock was being slaughtered because of a lack of fodder � the pigs so undernourished that they broke their legs walking to slaughter.
Danish farmers paid large taxes, and merchant sailors were driven to work as labourers in Germany because of the blockade. Likewise the Netherlands , with its 2.
Much of the arable land had been ruined by opening the dikes during the Nazi invasion and many farmers refused to sell the Germans cattle, but soon there was such a meat shortage that the authorities had to confiscate bootlegged dog-meat sausages. Because the Germans forced Dutch fishermen to return to port before dark there was also a shortage of fish, and although Dutch overseas possessions were among the world's main providers of tobacco, it could not breach the blockade.
Steel, iron and wood were so hard to obtain that the work of rebuilding Rotterdam came to a standstill. Life was particularly harsh in Poland. Cholera broke out in concentration camps , and mass public executions added to the estimated 3 million Poles already killed during the invasion. Thousands had already died of cold and from starvation during the first winter of the war and with its sugar beet, rye and wheat systematically stripped away, and with few farmers left on the land, conditions quickly grew worse.
Norway, with extensive mountainous areas relied on imports for half its food and all its coal; shortages and hunger quickly affected Belgium which, despite being densely populated and producing only half its needs, was still subjected to the widespread confiscation of food. France, normally able to feed itself, now had an extra 5 million refugees from other countries to care for.
The Germans held 1,, French prisoners of war as hostages, feeding them on bread and soup so thin that grass was added to bulk it up, and most items were now heavily rationed, with a worker entitled to a daily diet of only 1, calories; many people rode bicycles into the countryside during the weekend to scavenge for food.
German soldiers got double rations, but this was still only a modest daily diet, similar to that served to inmates in American prisons. Essential items such as pasta , flour and rice were severely rationed, leading to riots, and any farmer withholding his crops from compulsory storage could be imprisoned for a year.
Following their disastrous invasion of Greece from occupied Albania on 28 October , Italian reserves of rubber, cotton, wool and other commodities began to dwindle, and the high prices charged by Germany to haul coal across the Alps from Trieste made heat a luxury.
On 11 November Britain scored a major victory against the Italian navy at Taranto , which secured British supply lines in the Mediterranean. Even in the normally plentiful Balkan region there were now food shortages caused by an extremely hard winter in the east and flooding of the lower Danube which devastated the agricultural plains and prevented the planting of crops.
In Romania, farm hands were still mobilized into the Army and, along with Hungary and Yugoslavia, she needed all the wheat that could be produced, but the Germans made heavy demands on them, backed up by threats. Until late Hitler hoped to establish peaceful German hegemony over the Balkans as part of his supply hinterland, but after the Soviet occupation of Bessarabia and northern Bukovina from Romania in late June, his hand was forced.
After Italy's disastrous invasion of Greece on 28 October the British intervened in accordance with the Anglo-Greek Mutual Aid Agreement, occupying Crete and establishing airfields within bombing distance of the Romanian oilfields. In late November Hungary and Romania signed the Tripartite Pact , joining the Axis powers and, although Yugoslavia initially refused to sign, Hitler now had control of the majority of the vast agricultural resources of the Great Hungarian Plain and Romanian oilfields.
Britain's Bomber Command continued to attack German strategic targets, but the task of bombing Germany was made much harder by the loss of the French airfields as it meant long flights over enemy-held territory before reaching the target. This was the first 'area raid', but photography after the raid showed that most of the bombers had missed the target, and that Bomber Command lacked the means of carrying out precision raids. Even so, a bombing campaign offered the only hope of damaging the German economy, [16] and directives at the end of stated two objectives: precision attack on German production of synthetic oil, and an attack on German morale by targeting industrial sites in large cities.
In December Roosevelt, having won an historic third term as president declared that the U. As drew to a close, the situation for many of Europe's million people was dire.
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