Chapter 217: A dilemma

Should it become the German cartel that Hitler called it? In fact, this kind of cartel is similar to the consortium in terms of organizational structure, except that Hitler's cartel is certainly different, it has a monopoly and national attributes, and everything has to serve the national interests of Germany. Xiao Weiguo felt that this was a difficult problem to make a choice. But before he could answer, Messerschmidt had already answered for him.

Messerschmidt said in surprise: "Ah, Your Excellency Chancellor, this cartel you are talking about is really so good, we must be willing!" ”

Hitler waved his fist and said passionately: "The cartel is one of the best forms of economic organization, and it can contribute to the rapid development of the German economy." Especially after your Dragon Soul Ordnance Complex becomes a cartel approved by the Ministry of Economy, you will be able to get the greatest support from the government, and your products will be able to get more sales and profits. For the government, it means more tax revenue, it means a prosperous economy, and the people's living standards are improved, and what could be more exciting! Applying to become a cartel is the right choice for you! ”

Seeing Hitler's passionate speech, Xiao Weiguo remembered what he knew in his previous life, Hitler's cartel policy.

From 1924 to 1933, under the Dawes Plan and the Young Plan led by the chairman of the German National Bank, Schacht, and the Wall Street tycoon JP Morgan, the total amount of loans to Germany through the international consortium of Wall Street was 33 billion marks, the largest three of which were the establishment and assistance of three large industrial cartels.

The "cartel" is a form of monopoly that originated in Germany, and the root word is also German, which refers to the association of small manufacturers by a unified pricing limit agreement to control the entire market of a certain industry, for example, the OPEC organization is a cartel. Cartels are characterized by simplicity and effectiveness, and the disadvantage is that they are not stable enough. Everyone has a motive to break the agreement. But it is more appropriate in a place like Germany, which has a long tradition of trustworthiness since the Hanseatic League, and treachery is not very popular. When American capital came in, it quickly took a fancy to this form of monopoly. The bankers' manipulation method is simple: take control of one or a few of the strongest companies, giving them an absolute advantage over one or two basic products. And then take control of the entire cartel.

The three largest cartels are General Electric, United Iron and Steel and I.G. Farben, which control the power, steel, and chemical industries, respectively, and grasp the lifeblood of German industry. By 1937, the combined production of explosives by United Steel and IG Farben accounted for 95% of the country's total, and the well-known Krupp Arms Company was also under their control. This is not only thanks to American loans, but also American technology. Investors in the United States went directly to their boards.

Cartels are an old system with a long history in Germany, which originated in the second half of the 19th century. Pre-1933 cartels were private commercial organizations whose purpose was to maintain profits by limiting output, setting prices, and distributing markets. German industry was already highly cartelized during the Weimar Republic, and contrary to the attitude of the United States, the high concentration of the industrial sector was not considered a disadvantage in Germany.

Another reason why Hitler later delayed the implementation of the new cartel decree was that he was afraid of the dissatisfaction of small industry and business owners. In general, small businesses are deeply afraid of the influence of cartels because they believe that the cartel will become a tool for big business to swallow up small businesses. The third reason is that the adoption of the New Cartel Act and the various approaches adopted under it have greatly stimulated the de-cartralization of the industrial sectors and the establishment of various enterprise agreements. Therefore, the Minister of National Economy does not have to impose the new law. According to an estimate of November 1936, there were 1,700 cartels in Germany. Under the Compulsory Cartel Act, the cartels became completely new organizations, no longer private organizations serving private interests, but serving the interests of the state.

The cartels under Nazi rule had to deal with a number of issues: preventing overproduction in industry; Seek to make it easy for an industry to engage in new production in order to adapt to changes in consumer fashions and other market fluctuations; find ways to adapt industries to new raw materials; mediate seasonal fluctuations; improving the environment for domestic industrial workers; Maintain a balance among large and medium-sized enterprises in a given Ministry of Industry; Guarantee that the independence of an industrial mode of production is not infringed upon by other companies; delegate to large business a number of tasks necessary for the national welfare; prevent excessive mechanization in order to maintain the interests of highly skilled craftsmen; Maintain the division of labor between similar enterprises so as not to waste labor and production resources.

But. Xiao Weiguo also knew that if he did not agree to Hitler's request at this time, then the Dragon Soul Ordnance Industrial Complex would face the risk of disintegration, and the Messerschmitt Company itself was an investment by the government, and it was a company registered in Germany. And it's also an arms company, so it's definitely under strong control from the German government. If you don't apply to become a cartel, the result could be even worse, which is to be forcibly nationalized by Hitler. This is very common in the history of Hitler's rule, Xiao Weiguo knew that the famous Junkers aircraft manufacturing company was forcibly nationalized because of its opposition to Hitler, and Juncker himself was expelled from his own company, and finally died of depression! In the face of power, everything will become very fragile! Of course, the Dragon Soul Aircraft Manufacturing Company and the Bofors Defense Company in Sweden will certainly not be affected, but if the Messerschmidt Company is taken back by the government, the Dragon Soul Ordnance Complex will be equivalent to a broken foot, and it is impossible to have any business in Germany.

Thinking about this, Xiao Weiguo laughed and said, "Okay! Your Excellency, in fact, we are all in favor of your cartel policy, no matter what, as long as it is conducive to the economic development of Germany and the development of our Dragon Soul Ordnance-Industrial Complex, we will definitely be the first to respond to such a thing! We pledge to apply to the German Government Ministry for Economic Affairs to become a cartel soon and fully support His Excellency the Chancellor! ”

Hearing Xiao Weiguo say this, Hitler stood up happily and applauded vigorously: "Good! Mr. Philip, you and Dr. Willie were the first entrepreneurs to explicitly support me, so you deserve the best treatment, and if your company encounters a government department in the future, you can come directly to me! In fact, after becoming a cartel, it is only nominally under the management of the Ministry of Economy, but in fact, as long as you serve the economic development of Germany, there is not much difference from before, you can still sell weapons to the German government, and you can also sell weapons to foreign buyers, as long as you get the approval of the relevant departments! (To be continued.) )