In the first three weeks of Operation Barbarossa the German Wehrmacht had overrun most of Lithuania and two provinces of Latvia (Kurzeme and Zemgale). By September 1 1941 the remaining provinces of Latvia (Latgale and Vidzeme) would be occupied. Although under the nominal control of the German Wehrmacht numerous administrative entities had an input into the running of the occupied territories including the SS and police, agricultural ministry, Göring's Four Year Plan staff and, of course, the Nazi Party itself. From the very beginning, despite the optimistic views of Latvian nationalists, the Nazi administration had no intention of granting the slightest degree of independence to the Baltic States. The occupying Nazis soon set about dismantling all forms of nationalist expression and statehood. Estonia, Latvia and Lithuania would cease to exist. Germanic names and concepts were imposed upon the provinces and replacements for any terms that suggested statehood were devised. Reichskommissariat Ostland came into official existence on July 16 1941 although it was only publicly announced on November 18 1941. It is thought that Hitler wanted to announcement of the new province to coincide with the fall of Leningrad or Moscow.The idea of a Reichskommissariat Ostland belonged to Alfred Rosenberg. Rosenberg's plan was to create four provinces from the captured lands in the East. Due to the military situation only two were actually created (Ostland and Ukraine). Although the overall Ostland concept was Rosenberg's (he had once held a certain influence over Hitler but that time had past) it would be a mistake to give him too much credit. Hitler disdained Rosenberg's pseudo-mythical philosophy as expounded in Rosenberg's opus "The Myth of the Twentieth Century". In the struggle for Hitler's favor and for resources that made up the machinations of the Third Reich consisted of complex myriad of satraps who aggressively competed for power. Against the likes of Borman, Himmler and Göring, the incompetent and dreaming Rosenberg was easily overcome.
The Ostland administration was typically Byzantine. A number of competing departments had control in various parts of the government in the East. This approach appealed to Hitler's style of management - always keeping the satraps feuding amongst themselves, matching their powers against each other and maintaining a sense of vagueness to his orders and wishes. The high ranking Nazis had to interpret his wishes and act upon them as they saw fit, hoping that the Führer would be pleased.
The Baltics and their governance divided many of the top Nazis. Indeed the whole concept of Ostland was troublesome for the Nazis. Many, particularly in the army, saw Ostland as a bulwark, a frontier state, against the onslaught of Bolshevism (which would be pushed over the Urals) – its racially valuable elements to be ready to repel the invaders. And indeed this area had been Germanized for centuries and the Balts seemed viable candidates to be fully-fledged allies. For others - particularly Hitler, Borman and Rosenberg - there was to be no part in a Nazi future for the Balts. All attempts had cultivating nationalist/collaborative elements were rejected (even when large numbers of Balts were eager to fight against the oncoming Soviets). According to Hitler RK Ostland was to be cleansed, creating land for a new wave of ethnic Germans who would then become the occupants of the Baltic lands.
The Nazi administrators allowed at least the appearance of input from the Latvians. This was done purely to advance the Nazi agenda by appeasing Latvian nationalists. There was a duality of administrative structures: in Latvia, German and Latvian, but the Latvians lacked any real control. For example, the Germans nominated all appointees and the lowliest German official was of higher rank than higher ups in the Latvian administration. Both Estonia and Lithuanian had powerless collaborative councils while this area of Byelorussia did not have even the sham of an indigenous government.
