English Translation

16a CAGI MAL - 2 - ISC It is therefore necessary to expect the Protectorate in the present time= point to tighten its state credit more strongly and, as far as the balance cannot be achieved by an increase in the protectorate's revenues, to increase the public debt accordingly. The transfer of the necessary amounts by way of borrowing will not be a particular problem; for the Protectorate has only partially used up the funds accumulated in recent years throughout the economy of this area by borrowings. As a result, the money institutions of the Pro= tectorate have invested the large amount of money not to be placed elsewhere in bonds of the Reich.The pro= tektoratswirtschaft thus becomes increasingly creditors of the Empire. A greater use of the bond market e by the public authorities will counteract this undesirable development. Under the special conditions of war, the Ministry of Finance considers the tangible increase in the matricular contribution to be necessary for the Protectorate to be bearable by the budget. More than 50 % of government expenditure (including the matricular=contribution) has been covered by ordinary revenue, while the Reich budget, according to the Minister of Finance, is in a much less favourable position. It is therefore necessary to agree to the definitive fixed rate of the matri= kular contribution in 1944 to 1.25 Mia RM and to the provisional fixed rate for the matricular contribution l945 to l.5 Mia Rm. 2./Write: VII/1-H 3120/45(9 a es6 To the Wy Confidential Ministry of Finance,in Te rfe to Ve tet Prag III of B9b aaubEudoety Magdeburger Str.15 atb nede Subject: Matricular contribution of the Protectorate of Bohemia and Moravia for the calendar years 1944 and 1945. 07264