ABSTRACT
This chapter explains the Protectorate of Bohemia and Moravia under German control. The Czechoslovakian Republic had a major importance in the international economy and trade during the interwar period. Her advanced and modern industry was of special value for preparing the war. The leading principles of occupation policy developed by the German authorities derived from this strategic importance. It also paved the way for the construction of the Protectorate as a semiautonomous state with an own government but under the control of a German Reich Protector and his administration. The initially granted freedom of manoeuvre of the Czech government lost importance, whereas the power of the Reich Protector and his administration rose considerably. The economic policy as well as the control of industry changed remarkably over the period of occupation. Specific arrangements were made with Czech industrialists aiming at the sole target of increasing industrial growth for warfare purposes.
