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Sf. Subject File
Carterigohn March-Oct. 1941
Box 122
TEN CENTS
Excellit 3
AMERICA YOU
ILL
FOREWORD
by
THE GENERAL OF THE ARMIES
OF THE UNITED STATES OF AMERICA
T
HIS LITTLE book is aptly titled "You Can
Defend America." No patriotic citizen can
read it without feeling its inspiration. None can
fail fully to indorse its ultimate objective-the
ONCE
preservation of our precious heritage. It in-
China built a wall
vokes the principles of good citizenship and
the spirit of '76 and of '17 in this new emergency
confronting our great democracy. How each
SHE LIVED BEHIND IT. She laughed at her
of us can do his part in the home, in industry, in
enemies. She felt secure.
every walk of life, is indicated clearly and force-
fully. I commend its message to every American.
Soon an invader came from the north. Three
times China found the enemy inside her gates.
John J
They did not storm the wall. They did not go
around it. They simply bribed the gate-keepers.
Copyrighted 1941, by Judd 6 Detweiler, Inc.
YESTERDAY
France built a wall
THE MAGINOT LINE. Steel and stone. She
felt secure behind it. She put her faith in it.
Yet France fell. Why?
Something was missing. There was a gap
through which an invader came. That gap was
not only in the wall. It was in the spirit of the
people.
(-)
TODAY
America builds a wall
A RING OF STEEL. Ships and planes and guns.
But is this enough?
Does America have what China lacked? What
France lacked? Does she have total defense?
She builds her wall. Does she build character?
Spirit? The will to sacrifice?
Does she build men? Men who pull together?
Before our eyes the world changes. Nations
collapse.
We in America ask: "What can I do?" What
can 130 million Americans do?
PLENTY!
BEHIND SHIPS PLANES AND GUNS
STAND THREE LINES OF DEFENSE
Sound Homes
Teamwork in Industry
A United Nation
THEY FILL THE GAP
THEY MUST BE MANNED
THE FIRST LINE OF DEFENSE
Sound
Homes
W
HY DON'T the nations get along like one big
family? A humorist answers, "The trouble is
Fathers who know how to unite their families will
they do!"
take that spirit into their jobs. If they can settle pri-
vate strikes and lockouts at home, they know the way
Homes are the cement of national life. The place
to industrial cooperation.
where the nation learns how to live together. The non-
stop assembly line of character which is the heart of
Mothers who teach their children responsibility, faith
national morale. If homes crack, the nation cracks.
and discipline will build the nation's character.
Family life once made America great. Home build-
Families who allow no waste in their kitchens will
ing was an art. But it went out with the horse and
show the nation how to use all of everything. Their
buggy. For millions today home means only a filling
thrift will help make America secure.
station by day and a parking place at night. Divorce
Sound homes will produce not only the man power,
is rapidly becoming part of the American Way. And
but the will power to defend America.
the birth-rate continues to go down.
Many of us would willingly die for our family, but
sometimes find it pretty tough having to live with them.
So Father pays the bills. Mother worries. The children
do as they please. We like to sing "Home Sweet Home"-
when we're away from home.
To defend America we need sound homes. Where
the family hide nothing from one another and help one
another to give their best. Where there is plenty of
laughter and love. Where meals are not just gulp and
go, but where the company and conversation are as
good as the food. Where the welcome sign is always
out. Where neighbors can drop in to borrow a cup of
flour and find real friendship. And courage when times
are hard.
Homes that pull together, pull the town together.
And unite the nation.
THE SECOND LINE OF DEFENSE
Teamwork
Industry
INDUSTRY has cost Americans three
America is in danger. And the gains each fought for
dollars a day. It can sabotage any re-
will be swept away.
armament program. It can cripple a nation before an
army gets into the field.
The defense of the nation demands that all rise above
self-interest. It means each faces up to his own mis-
France failed in the factory before she failed at the
takes. It means we join forces for the common good.
front. Her people forgot how to pull together. Em-
ployers refused to sacrifice. Men refused to work. In
Then our industries will run at capacity. Our man
her zero hour desperation was no substitute for prepara-
power will be put to work. Together we all will pro-
tion. She was lost.
duce the materials and morale to make America strong.
America must win the battle for industrial coopera-
tion if she is to be secure. Every man has a part. Every
worker, every employer, every labor leader.
"If we perspired more in time of peace, we would
bleed less in time of war," said Generalissimo Chiang
Kai-shek.
Americans know how to work. We must work
harder. Not every man for himself, but every man for
his country, whatever his job.
We must work with all we've got. America is like a
car hitting on half its cylinders-and there is a steep
hill ahead. Much of her power is wasted. Waste in the
factory, waste on the land. Waste of time, waste of
money, waste of men.
We must work together. Friction between men slows
up work more than friction in machines. If employers
or workers destroy team-work by their selfishness, then
THE THIRD LINE OF DEFENSE
A United
Nation
AMERICA DOES not need to be divided and quar-
ing together for America. Honest team-work between
reling at home just to prove she is a democracy-
government and business, labor and management, union
any more than husband and wife need to get into an
and union, republican and democrat, city and farm.
argument just to prove they have minds of their own.
A united people will build the new America. A na-
A crack football team isn't all made up of quarter-
tion set free from fear, hate and greed. A nation that
backs. Every man has his part. Each depends on all
holds the secret of the new world.
the others. So with the nation. Unless we have national
teamwork someone is likely to take the ball away from us.
Nations in Europe have gone down because they were
at war inside themselves. Their people couldn't get
together. They refused to face facts. They were
caught unprepared. Even as the storm broke, men
fought to get more for themselves.
National unity is the heart of national defense. If
a nation is united, no Fifth Column can slip through
and sabotage its strength.
A united people will have the spirit which no disaster
will shake and no danger will weaken.
Unity is more than agreeing on what we like or whom
we hate. Team-work cannot be built by high talking
and low living; by fine ideals and selfish lives.
"Team-work," said Knute Rockne, "is a combina-
tion of self-sacrifice, brains and sweat." It means work-
What You can do- -
AMERICA NEEDS GUTS AS WELL AS GUNS
NATIONAL CHARACTER IS THE CORE OF NATIONAL DEFENSE
CONGRESS
CAN'T VOTE IT
DOLLARS
WON'T BUY IT
IT'S YOUR JOB TO BUILD IT
How?
Change! Unite! Fight!
THAT THIS NATION.
UNDER GOD, SHALL
HAVE A NEW BIRTH
OF FREEDOM
Change
H
UMAN NATURE is the bottleneck in the pro-
duction of national morale. We need a new spirit
in the country. But to get it we must start with a
It's like joining the army. You decide there's some-
new spirit in every citizen. And that means you.
thing worth fighting for. You enlist. You put your-
self under orders. Then you are given new equipment.
Either you sacrifice your personal selfishness for the
You find new comradeship. Your way of living changes.
nation-or you sacrifice the nation for your personal
And your whole outlook on life.
selfishness.
To be governed by God means to listen to a Wisdom
America needs a change of heart. We must live the
beyond your own. And obey.
American Way.
Americans are honest, unselfish, neighborly, clean
George Washington listened at a time of conflict-and
gave a nation freedom.
and free.
Or are they? Always? Are you? All the time?
Abraham Lincoln listened at a time of crisis-and
preserved a nation's unity.
If not, what can you do about it?
Lincoln said, "I have so many evidences of God's
A new spirit can grip your heart and mind and muscle
direction that I cannot doubt this power comes from
-if you are willing. You can change. How?
above. I am satisfied that when the Almighty wants
The first step is to face the facts. The facts about
me to do or not to do any particular thing, He finds a
yourself. Honest? Unselfish? Neighborly? Clean?
way of letting me know it."
Free? At home? In industry? In politics?
You don't have to be President to do as Lincoln did.
Our fathers looked to God for their direction. We've
When you take time to be quiet and listen, God will
looked about every place else.
guide your thoughts. He will give you orders. And
We still print "In God We Trust" on our money.
a plan. Directions how to put things right. Creative
Everybody carries the idea around in his pocket. Is it
ideas about yourself, your home, your job, your com-
just an idea? Or is it the main point?
munity, your nation. How you can strengthen Amer-
ica's three lines of defense.
William Penn said, "Men must be governed by God,
or they will be ruled by tyrants."
Make a note of the thoughts you get. Test them. Are
they honest? Unselfish? Neighborly? Clean? Then
What are you governed by? Your wife? Your hus-
put them to work.
band? Your desires? Your pocketbook? Fear of losing
your job? Personal ambition?
As you act on them you will begin to change. So will
your home and your community. The Land of the Free
Only God can change human nature. When you
will be the home of the strong, and the spirit of our
decide to be governed by God, then the change comes.
people invincible.
fault, there'd be less mud-slinging and more of the hon-
Unite!
esty that builds a nation. There'd be more of a common
loyalty to America, above party, class, race, point of
view, and personal advantage.
That's not just the job of the politicians; or of man-
agement; or of labor. It is yours.
W
HEN YOU find the secret of change and getting
direction from God, you can play your full part
It is your job to work to make this country you
in a program of total defense.
love into One All-American Team.
You can overcome disunity wherever you find it.
You will be a rallying point for all citizens who want
to do their bit. Your home will be a recruiting center.
Your neighborhood a sample of the new America-the
America where democracy works.
Such national unity doesn't just happen. It begins
with you and the fellow you don't get along with.
If you start changing, the other fellow will sit up and
take notice. If you put things straight with him, maybe
he'll put things straight with you.
Everybody wants to see the other fellow different.
But everybody is waiting for the other fellow to begin.
The secret of national unity is to have the guts to begin
with yourself.
Honest apology starts team-work.
Try it at home. Thousands of families are making
the experiment. Mrs. Jones who was "always right"
apologizes. Mr. Jones decides to be honest too. The
children say, "Gee, it's fun to be home now!" The
neighbors keep up with the Joneses-in bringing a new
spirit to their families. Backyard gossip changes to
planning for the community. Planning for sound
homes. Planning to defend America.
If boss and worker put all their cards on the table, in
this spirit of honest apology, would strikes and lockouts
be necessary? Or would we have team-work in indus-
try?
If political parties admitted where they'd been at
Fight to make your home and community a pattern.
Fight!
Fight to bring team-work in industry.
Fight to unite the nation.
Then America will have what ancient China lacked.
What modern France lacked. She will have
M
USKET AND POWDER-HORN once hung over
TOTAL DEFENSE
the door of every American home. Our fathers
were not afraid to use them. The Minute Men at Lex-
ington and Concord seized them and ran to defend their
country. Not a man in America would hesitate to do
it again if invaders threatened his homeland.
But America has already been invaded. Like para-
chute troops in the night, fear, hate and greed have
slipped into our homes, our industries, our communi-
ties. Like termites they are eating away our national
character.
The fight is on. The fight against our softness, graft,
laziness, extravagance, buckpassing, materialism-allies
of the Fifth Column. The battle line runs through
every home, every office, every factory, every farm.
It is a daily battle. It takes courage. Imagination.
You've got to be tough inside. You've got to think
hard, and live clean.
You and 130 million other Americans can enlist today
in this fight. You don't have to wait to be put into
uniform. You're in the army now.
First lick the enemy inside yourself. Then get the
next fellow to join you in this battle for 2 new Amer-
ica. Get your newspaper, radio station and movie
theater to fight for a new morale.
(82)
AMERICA
This land of towering cities and golden prairies, of great rivers
and mighty mountains. This nation of Washington and Jefferson,
of Lincoln and Lee and Edison, and countless thousands of ordi-
nary men and women, who crossed oceans and plains, who toiled
long for little reward, who sacrificed and built our heritage.
If this heritage was worth their lives to build, it is worth ours to
preserve.
"And in support of this declaration, with a firm reliance on the
protection of Divine Providence, we mutually pledge to each other
our lives, our fortunes and our sacred honor."
YOU CAN DEFEND
AMERICA
*
A SONG FOR NATIONAL DEFENSE
Verse
Tempo di Marcia
Chorus
7
7
7
7
1. Chi na built a
big thick wall,
France, the Ma. gi
2. Ships and guns and
planes we need, Our coun . try to de - -
You can de-fend A. mer-i- ca,
You've gotsome-thing to do,
7
7
7
7
7
7
7
7
7
7
not.
We
must find a
new
de- fense, That
Clean up the na-tion from bot-tom to top,
Start with your-self in the
fend.
But we must arm the hearts of men, To
7
7
none can ov.er throw.
A-mer i-ca, the call rings out!From
7
win out in the end.
Ban- ish fear and greed and hate,
home and the shop!
You can de-fend ^ - mer-i-ca
7
Cal-i-forn-ia right a-crossto Maine,
You andev'. ry
No-bo. dy will if you don't
Ev'-ry man and ev'-ry fam-i - 1y.
Un der God we
So get go-ing and give, And we'll
,
,
7
7
moth-er's son can
pi
o neer a - gain.
then can build our
na
-
tion's u - ni -
ty.
all learn to live, To de - - fend
A-mer i . cal
T
HIS booklet comes to you inspired by those who
desire to see realized the vision of the General
of the Armies, that this message may reach "every
American."
Its purpose is to enlist every reader as a partner in
national service, to bring this spirit to every home,
every workshop, every farm, every industry.
It is hoped that you will give your best thought in
planning how this can be accomplished.
It may well prove that this booklet will become the
basis for the national philosophy of total defense for
America.
Information regarding additional copies may be ob-
tained by communicating with
Moral Re-Armament
Judd & Detweiler,
Fairmont Hotel,
Washington, D. C.
San Francisco, Calif.
the
You
can defend
America
Now!
Printed in USA by Julid & Derweller, Inc., Washington, D.C.
PSF JackCarles Kan the Folder
THE WHITE HOUSE
WASHINGTON
theirme
March 3, 1941.
MEMORANDUM FOR
JACK CARTER
You should show this list
relating to the raw material
situation in Belgium to the
Army, Navy and State Department --
and also to the British Embassy.
F. D. R.
JOHN FRANKLIN CARTER
Day Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
March 1, 1941.
Raw Material Situation in Belgium, as reported by Antwerp factory
manufacturing electrical equipment for the Occupying Authorities,
January 2, 1941.
METALS
Iron and Steel--one-tenth of actual requirements for industries out-
side of utilities and communications.
Copper and Brass--about to be prohibited.
Aluminum--supply stopped, some prospect of getting more from France.
Zinc--no difficulties.
Pig Iron--plentiful.
Lead--very scarce.
Nickel--unobtainable.
Magnet Steel--sufficient supplies.
Precious Metals--adequate.
Coal--insufficient, supply rationed.
CHEMICALS, ETC.
Benzine--insufficient
Petrol--unobtainable
Gas-0il--unobtainable
011s--30% of normal supply, much of it unobtainable, substitutes.
Bitumen and Asphalt Compounds--scarce.
Boric Acid--pure stocks exhausted.
Nitric and Sulphuric Acids-50% of supply available.
Alcohol--sfarce.
Trichorethylene--plentiful.
Copper Acetate--Belgian stocks exhausted, some obtainable from Germany.
Nickel Subphate--unobtainable, German substitutes used.
Resins--unobtainable, synthetic substitutes used.
011 Paints and Glues--difficult to obtain
TEXTILES.
Cotton-only 30% normal supply available.
Rubber;-prohibited, bitumized paper substitutes.
Leather--very scarce.
Scrap and Reconditioned Materials--controlled.
LAMP BULB MATERIALS.
Glass Bulbs--adequate supplies, no colored bulbs available.
Glass Ware--adequate supplies from Holland.
Sockets-30 hormal supplies available.
Tungsten--sufficient supplies.
Molybdenum--almost unobtainable, substitutes used.
Electrodes--delayed deliveries, some substitutions.
- 2 -
RADIO COMPONENTS
Tubes (American Type ) --no supplies available.
European Type Valves--small supply available.
Cones--no supplies.
Various components- subject to general controls and rationing.
MISCELLANEOUS.
Mica--general European shortage.
Ball Bearings- - - fair supplies available.
Bakelite Powder--adequate supplies.
Great difficulty reported in obtainang minor products such as drills
and taps, packing paper, stationery, and many others whose use is
absolutely necessary.
####
JFC.
PSF
Jack Caster Jolder
JOHN FRANKLIN CARTER
Tile
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
Personal capital
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
March 6, 1941.
MEMORANDUM ON CONDITIONS IN GERMANY, AS REPORTED BY AN AMERICAN
BUSINESS MAN JUST RETURNED FROM THREE MONTHS VISIT TO BERLIN
ON COMPANY BUSINESS.
1. Serious labor, shortage exists in Reich, despite use of Polish,
French war-prisoners, Dutch and Italian labor.
2. Raw material situation far from desperate, thanks largely to
seizure of war-materials in Poland, Czechxoslovakia, France and Belgium.
3. Food situation perfectly adequate; German supplies rationed, more
food available in Poland and Czechoslovakia than in Reign.
4. Transportation situation now Germany's greatest weakness. If R.A.F.
could bomb railway lines from Czecheslovakia and Poland, serious situa-
tion would develop. Additional lines being built by French prisoners.
5. German morale reported good, on basis of Hitler successes.
6. Opposition to Nazi Party strongest among more intelligent groups.
German Army very popular and widely respected by Germans. Wide fear
of Gestapo holds criticism down.
7. Germans entirely confident of winning war, especially Party members.
8. Germans establishing particular regimes to suit psychology of
various conquered countries; no uniform pattern of conquest or adminis-
tration; for example, coffee allowed in Czechoslovakia, unobtainable
in Germany unless bought with foreign exchange.
9. Determined effort being made by Germans to take over ownership
of American plants, etc. in Germany.
10. Object of Germany's war-policy is stated (by Germans) to be
unification of Europe along Nazi lines, not necessarily under Xazi
German political sovereignty.
11. Americans are officially popular in Germany, are privately hated
by German authorities as obstacle to their plans.
12. No discussion reported of post-war plans of Germany outside of
Europe, being the export of manufactured goods, which presumably
means Latin American markets for German industries.
JH.
PSF
JOHN FRANKLIN CARTER
Rawfile 5-41
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
March 6, 1941.
PERSONNEL, RAW MATERIALS AND BUSINESS PROBLEMS OF I.T.&T. FACTORY
AT BUDAPESTH, HENGARY. (As of December 16, 1940).
Personnel-- 150 incpmpetents loaded on payroll, displacing former
employes dismissed under terms of Aryan Statute. Further
substitutions anticipated with disastrous effects on
business efficiency.
Business---Hungarian business limited by raw-material shortage, mixed
business subject to German pressure for centralized control,
export business in Jugoslavia being cut off by German
argument that country belongs to Germany as sales-field.
Raw Materials--Non-ferrous metals in stock cannot be used without
release from governments.
Scarcity of copper, nickel unobtainable.
General rule obtains that articles containing copper
and nickel cannot be exported without receiving an equiva-
lent quantity of copper and nickel.
Nazi Sompetition--Germans trying to tie up the Balkans by obtaining
orders for all sorts of equipment, without regard to
deliveries. Increasinga inability to make deliveries is
reported.
Same distribution as previous memo. on Belgian raw materials.
JOHN FRANKLIN. CARTER
1210 National Press Building
Washington, D.C.
PS.Carter.
March 8, 1941.
NAZI ACTIVITIES IN THE UNION OF SOUTH AFRICA
(Excerpt from report received from Cape Town, January 19, 1941)
"Our main difficulty here is that the local Nationalists have
assimilated enough of the Nazi technique to make themselves very ob-
jectionable. They make every use of the privileges of free-speech
and the right to their own point of view. They have formed themselves
into what was a large secret society, now forced into the open,
luckily, which is said to number a quarter of a million of all sexes,
shapes, ages and sizes
"Their whole intention seems to be sabotage in a small way,
comforts sent to troops disappear mysteriously along with letters,
soldiers are set upon and beaten up in dark alleys, they are spat at
by foul-breathed women, equipment is apt to go astray, inside the army
equipment is sent to wrong destinations or orders are countermanded.
In fact we have all the joys of Naziism, with none of its responsibil-
ities. However, these elements. (the active ones) only consist of a
few thousand irresponsibles who hope to benefit by British soft-
heartedness if we win, and by German gratitude if we lose."
fir.
541
Pronfidential
JOHN FRANKLIN CARTER
1210 National Press Building
Washington, D.C.
March 8, 1941.
SUMMARY OF REPORT ON SPAIN, PREPARED IN CONFIDENCE BY I.T.&T. MADRID
REPRESENTATIVE (As of September 1941-February 12, 1941)
1. Spanish press, official opinion moving away from Axis, in favor of
British, as a result of British resistance and prospect of American
intervention.
2. Italians generally despised, but great respect for German Army
exists in Spain.
3. Franco is now regarded as holding whip-hand, Suner a laughing-stock.
4. A few extremists favor a grab for Gibraltar and Portugal as well.
5. Spanish transportation system still 40% destroyed as result of
Civil War; local starvation due partly to difficulty of transporting
supplies; railway stock insufficient to handle troop movements in
addition to essential food and commercial goods.
6. Food supplies very short. Only eggs and potatoes are comparatively
plentiful; marked lack of flour, beans, rice, coffee and meat. Working
classes ripe for revolt, but lack weapons.
7. Expert observers, both Spanish and foreign, declare any declaration
of war by Spain would be catastrophic to the country.
8. German march through Spain against Gibraltar not considered likely.
Benefit to Germans believed doubtful, cost great. A German Army of
Occupation would face vengeance and sabotage on a scale much worse
than in Holand where German sholdiers are being thrown into canals on
dark nights.
9. German troops in Spaint: About two German divisions in Northern
Spain since arrival of German army on Spanish-French frontier; free
movements of these troops back and forth across border is reported.
No German troops went to Sensander to help that city after the recent
storm and fire.
go.
"The Week in Washington filtal
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
Metropolitan 4113
March 17, 1941.
MEMORANDUM OF CONVERSATION WITH LEONE FUMASONI-BIONDI, WASHINGTON
CORRESPONDENT OF STEFANI (ITALIAN) NEWS AGENCY ON POSSIBILITY
OF TAKING ITALY OUT OF THE WAR.
Fumasoni-Biondi is an old personal friend of mine, a highly
civilized "good European" and nephew of Cardinal Fumasoni-Biondi,
former Apostolic Delegate at Washington.
He said that he believed it important that the U.S. Government
should know that the Fascist regime was extremely worried over the
possibility of a wedge being driven between the xxime regime and the
Italian people, whose passive resistance as warriors was making possi-
ble British victories in the Mediterranean.
He said that Winston Churchill's attack on Mussolini had the
Rome authorities badly worried and indicated that, if the wedge could
be driven now, the Italian people would clean up on Mussolini & Co.
themselves. In any case, Italy cannot last beyond August, he believes.
One danger he sees is that Hitler will launch a full proletarian
revolution in Europe, with State ownership of all property and the
complete elimination of the middle classes, subjugation of the Church
and drying up of the sources of European culture. He believes that
if America acts swiftly and wisely we can anticipate such a movement
and turn the current of European revolt into channels of freedom.
Fumasoni-Biondi said that relief of Spain, if discreetly handled,
might serve as such a wedge. He warned that the Spanish leaders, like
Petain, were peculiarly sensitive to appeals to their vanity. In this
connection, he suggested that Spain might be led to believe that it
would serve as the natural "link" between America and Europe in the
post-war reconstruction.
He professed his eagerness to be of assistance, but did not feel
that the time had come when he could effectively break his own rela-
tions with Stefani. Incidentally, he warned that as Italian-German
relations grew worse (or Spanish-German) the Italian (or Spanish)
press would become particularly loud in professions of loyalty to the
Axis. He also stated that Italy's attack on Greece was made because
Mussolini discovered that Hitler was willing to sell Italy short in
the Western Mediterranean in order to get Spain into the war, and that
Spain had deliberately put the price for intervention so high as to
prevent the Suner negotiations at Berlin from being ARE completed by
Spanish belligerency.
ger
JOHN FRANKLIN CARTER
PSF carter
(Jay Franklin)
Filensonal
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
"The Week in Washington"
Metropolitan 4112
Metropolitan 4113
March 20, 1941.
DIGEST OF REPORT ON BUSINESS CONDITIONS IN ANTWERP, AS EXPERIENCED
BY THE MANAGEMENT OF, THE I.T.&T. FACTORY (As of January 6, 1941).
German occupation has had disruptive effect on the company's
European business (i.e. with countries under German control or occu-
pation). Due to strict exchange controls and the necessity of obtain-
ing clearances through Berlin, collections are impeded between
the Belgian factory and its customers in Holland, Bohemia and Moravia,
Yugoslavia, Rumania, Mannark, Norway, France, Switzerland, Poland,
Spain and Portugal.
Accounts with Germany and Italy, by contrast, being currently
liquidated, as is also true of Denmark.
Facts seem to warrant two conclusions: 1) that, where possible,
the Germans seek to make Berlin the financial capital of Europe; 2)
that, hitherto, Hitler's "New Europe" is being stifled by failure
to simplify or give facilities for ordinary commercial clearances.
Germans are using political and financial pressure to compel
factories in Belgium to maintain employment regardless of earnings.
Raw material shortage extremely serious. Excerpt from report
states:
"
last December requests for iron for the month totalling
about 200,600 tons had been cut to 35,000 tons. Another example is
the report that the General Motors plant in Antwerp, which was manu-
facutring trucks for the German Army, was forced to shut down due to
lack of raw materials."
Germans seeking to wipe out adverse German trade-balances with
Switzerland, Holland, Denmark, Rumania and Spain, by promoting Belgian
exports to those countries.
Raw material substitutes being used on a considerable scale,
especially in Germany.
Joe
JOHN FRANKLIN CARTER
PSF
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. c.
"We, the People"
Metropolitan 4112
"The Week in Washington
Metropolitan 4113
MEMORANDUM OF CONVERSATION WITH E.S. HOGLUNDZ, GENERAL MOTORS
CORPORATION DIRECTORY, GERMANY (March 27, 1941).
Mr. Hoglund spoke highly of the German Army: "They have a darn
good, hardworking Army. At the presentime one sees relatively little
evidence of the Nazi Party"
He said that the weakest point in the German political system was
the terror, said that Nazis claim terror will be relaxed after the war.
He reported most serious shortage in skilled labor for Reich.
"Despite highly organized labor offices important newspapers on Sundays
still carry ten or twelve pages of advertising for engineers, accountants
etc."
He spoke well of German consideration for American business firms:
"Up to last Fall I think they tried to be about as square as they could,
particularly if you were important in war economy." "Up to the first
of the year it certainly was the policy of Government not to do anything
which would antagonize American business". BProminent men threw up
their hands in horror" at the thought of a break with America, said that
"after this is over we are going to do business with America--we don't
want to do anything which might hinder the taking up of amicable
commercial relations after the war". Hoglund is convinced of the
sincerity of this attitude and believes that Germany will demobilize
intense economic nationalism after the war. He is inclined to be
sympathetic to the German point of view, but not in my judgment to a
degree which would impair his loyalty to the United States.
J.F.
gn
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
MEMORANDUM OF CONVERSATION WITH E.M.VAN VOORHEES, GENERAL MOTORS
CORPORATION REGIONAL DIRECTOR, FAR EAST (MARCH 25, 1941)
Mr. Van Voorhees said that "Japan will do everything possible to
avoid war with the U.S." but cannot be expected to act logical/ly due
to "terrific" economic hardships: "No business of any kind. Few horses
and rickshaws, no automobiles. Complete shortage of merchandise and
raw materials. Not much going on except muitions factories".
He said he knew of Japanese men educated in U.S. "expressing
themselves as certain war is going to ensue." "Food is primary essential
Next thing they need is oil for merchant marine and for fleet." "People
seem to believe that Japan will attack U.S. so as to divert aid from
Britain. Japan won't do."
He said that Matsuoka's primary object is to gain prestige for
Konoye Government, through recognition of Manchukuo. Also ******
"wants to find out what Germany's attitude is if Japan should move
towards Dutch East Indies." He believes Japan could take over easily
U.S the Dutch East Indies Army is "a cardboard army that would fall
before any attack". On the contrary, "if China can hang on she will win"
Best approach to Japan is through Navy, "best men in Japange go
into Navy". Says "Japanese are falling into habit of bribery", parti-
cularly in China. Says Japanese have become much more pleasant to
Americans since we cancelled commercial treaty, ordered Americans to
leave Far East, etc. Says our "war on Japanese nerves" successful.
J.F.C.
In
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. c.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
MEMORANDUM OF CONVERSATION WITH R.W. SEELEY, GENERAL MOTORS
CORPORATION MANAGING DIRECTOR, SWEDEN (March 27, 1941)
Mr. Seeley said "Sweden can't trade with U.S. nor with Russia.
Germany biggest customer". Swedes don't like it.
He said that the German Army was the strongest political element
on the Continent today, but reported instances of mutiny in Norway.
"Don't think Norway venture was as good as reported to world. Losses
were terrible in Kattegat (130,000 men drowned) and in taking of Oslo
(30,000). Scared German troops regarding any sea invasion of Britain.
Greatest difficulty to get them to practice with boats. Captains
taking toops out for practice landings reported men got sick and scared."
Shortage of fats reported in Germany. No migration of ****** Swedish
labor to Germany.
He said: "I heard from a reliable source that the German High
Command has given up idea of winning war. They are going to get all
they can in Europe and hold for bargaining for peace. They have taken
practically all of Europe at very little cost."
He said Russia has 1,000,000 pretty good troops, 1,000,000
medium trained troops, the rest were poor as a fighting force.
He said that Germany was getting less than 5,000,000 tons of
iron ore a year from Sweden, compared to pre-war imports of nearly
10,000,000 tons.
Seeley impressed me as an able man whose services would be of
value to the Government.
Jr.
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
MEMORANDUM OF CONVERSATION WITH V.C. GENN, GENERAL MOTORS CORPORATION
MANAGING DIRECTOR, SWITZERLAND (March 27, 1941).
Mr. Genn said that the German Army was unquestionably more popular
than the Nazi Party. "Germans inherently look upon Army as strongest
element in the life of the nation." German morale is strong and "will
remain strong as long as Hitler can bring them either political or mili-
tary victories."
He said Goebbels was very unpopular, suspected of Communism and of
pro-Jewish leanings; Hitler's hold due to German demand for leader with
"strength and brutality".
He said that Germany would crack with a few military defeats--"they
haven't the guts to take it."
He believes that the German system possesses much more strength than
generally assumed but a Spanish invasion impracticable-- "Spain is in
worse condition than unoccupied France. Hitler would have to transport
all his food supplies and it would be impossible to get military equip-
ment across Spain, due to ruined transportation facilities".
He reported thousands of Swiss workmen crossing from Switzerland
into Germany, some for & week, some for a month, some commute. Italy
is "hopelessly sick of the whole affair" but "Germans control Italy".
"Spain is hungry but France hopeless. Some change in French morale due
to Petain.'
Genn does not believe Germany can conquers England, expects the war
to last until 1943, when air-supremecy will count.
Genn impressed me as an able man whose services would be of value
to the Government.
Jrc
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. c.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
MEMORANDUM OF CONVERSATION WITH D.F.LADIN, GENERAL MOTORS CORPORATION
REGIONAL DIRECTOR, NORTH EUROPE (March 27, 1941).
Mr. Ladin attributed German strength to fact that "there is a
Party, a strong support on the part of the people, backedgby the Army,
backing a leader they have confidence in." "The Party is backed by
the Army. Hitler's promises kept so far".
He reported a headline from a Danish newspaper, after the occupa-
tion, "Our budget need not be so great as expected. Will be able to
Save (very large figure) because we have no need for building up defenses'
He said that Germany is used "to getting along with limited
supply of raw materials, using substitutes and conserving what it has
and can get.'
He said that Goering's popularity is because he is "typical German
to look at, talk to, easily understood. "Ley is also very popular".
He said: "Sometimes I wonder how Germany can be beaten, yet we
know in time those things have happened and will again. If Germany
were victor we would find her not so bad as we think. If war over
tomorrow, Germany would be victor. No question about that. The
thing that gives me hope with regard to Germans is fact that basically
they are businessmen and they want to get back to work and soon. They
wish war over. Hope war will be over and world get back to nice place
to live in and Germans have a little more."
Somewhat pro-Nazi- or defeatist-- in his point of view.
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
MEMORANDUM OF CONVERSATION WITH E.W. ZDUNEK, GENERAL MOTORS
CORPORATION MANAGING DIRECTOR, BELG IUM (March 27, 1941).
Mr. Zdunek said that "the only possible means of ending the war
would be & crack-up within Germany. First stop successes of Germans--
make them realize they can't have everything for asking. Second bomb
the devil out of them--make them realize seriously at war and cannot
win. Would take a couple of years to crack them, revolt would come in
the industrial areas, partzicularly the Rhineland."
He said the Germans very strong and will take a lot of beating.
"Germans are good winners and enthusiastic ones. Don't take beating
very gracefully." Control too strong for anti-Nazi revolts at present.
He said oil and gasoline were most vulnerable spot in German
war-economy. Labor shortage being met by 72-hour week. Productivity
of labor low. Between 6,000,000 and 8,000,000 Germans mobilized,
causing labor shortage. He said we should stop stuff getting into
Germany.
He said "we ought to be careful in the way food is given Unoccu-
pied France, unless we make them put something down on the dotted line.
We can't buy Frenchmen's good will but by giving food might say--Now
you play with us. We should use food as a weapon."
Zdunek is probably an able man who could be useful to the Govern-
ment but I had a sense of caution in dealing with him.
J.F.C.
ps carter
SECOND INTERIM REPORT SUBMITTED BY JOHN FRANKLIN CARTER.
Political Conditions in Nazi Germany
Economic Conditions in Nazi Germany
Reactions of American Businessmen to Nazi Germany.
Washington, D.C.
March 31, 1941.
SUMMARY OF CONDITIONS IN NAZI GERMANY (AND OCCUPIED COUNTRIES)
AS REPORTED BY AMERICAN BUSINESS MEN RECENTLY RETURNED FROM
EUROPE (As of March 31, 1941).
---
POLITICAL CONDITIONS.
The strongest and most respected element in German Europe is
the Army, whose strength is generally underestimated by American
the
public opinion.
The weakest element in German Europe is the Nazi Party. However,
the Army's military victories have tended to increase respect for the
Party's political leadership and are popularizing the regime.
Morale is fairly good.
Reports on corruption vary. It is generally believed that Party
members are open to bribery. Army officers in France and Poland are
also said to expect and accept bribes. Perhaps this is only a form of
loot and does not affect the Army's reliability.
Popular sentiment seems to hold that it is "now or never" for
Germany to become a great nation. Many Germans fear post-war ostra-
cism etc. if Hitler loses.
Heavy German losses in forcing the Kattegat during the seizure
of Norway (reported at 130,000 men drowned) led to mutiny and refusal
to support invasion plans for England.
There is general belief that the Germans lack "guts", that they
love to win' but are craven losers, that they can't take it.
Formula for cracking political unity of the Reich is stated:
1) Put an end to the series of German political and military victories;
2) Bomb the German cities.
J.H.C.
- 2 -
ECONOMIC CONDITIONS.
Food supplies in Germany are regarded as adequate for present
needs. Conditions worst in Spain, where famine is sporadic, due
largely to ruined railway system.
Raw materials in Germany are reasonably suffiçient, except for
rubber. 011 and gasoline are sufficient for military purposes. Sub-
stitutes for raw materials being widely developed.
Labor supply--especially skilled labor--is insufficient. Swiss
labor now commuting to German factories, Swedish labor still untouched,
much Polish and French (war-prisoner) labor, considerable Italian,
Dutch, Belgian and Czech labor being utilized.
Financial exchange system is still demoralized and complicated
by German occupation and by special controls calculated to force
clearance through Berlin.
Transportation system is heavily overloaded: the weakest part
of the entire German war-economy. Trains run slowly, civilizn travel
is sharply curtailed, rolling-stock depreciated. The Germans are
systematically pilfering rolling-stock from occupaied nations.
Blockade is most effective with reference to labor-supply and
transportation system. Use of substitutes and inability to effect
natural exchange of products increases the number of man-hours and
the capital investment required to produce industrial goods. Inabil-
-ity to employ marine transport outside of the Baltic also increases
the load on the railways. This also has important military effects:
for instance, the Spanish railways have a wider guage than the other
European systems, making it impossible to use Nazi-controlled rolling-
stock to supply a German expedition against Gibraltar or Morocco. Jsc
- 3 -
REACTIONS OF AMERICAN BUSINESSMEN TO NAZI GERMANY.
Germans consistently talk "business as usual" after the war.
German businessmen tell American businessmen that war between America
and Germany is "unthinkable". Considerable efforts are made by the
German authorities to respect the property and rights of American
firms in Axis territory--some reports indicate a tendency to take over
American-owned business concerns--by use of pressure.
Some American businessmen are sincerely impressed by German ef-
ficiency and the social achievements of the Hitler regime, such as
low-cost housing and the Youth program. They uncritically give to
the Nazis credit for things initiated under the Waimar Republic. A
few American businessmen may regard Nazi success in social discipline
as proving the decadence of democracy. One prominent American business
leader is reported buying German industrial bonds as a hedge against
possible German victory. This report is now being investigated.
Where American firms employ reputed Nazi agents in their foreign
branches, it is possibly because these firms feel not business necess-
ity to promote American national policy and because the Nazis have
taken advantage of the opportunity to fill what they regard as a poli-
tical vacuum. Here it is suggested that some informal arrangement be
made by which the State Department investigate and if necessary veto
the employment of such Nazi or Fascist agents by American firms with
foreign branches.
The general reaction in the business circles investigated is one
of eagerness to cooperate with the Government. There are a number of
highly trained and experienced business executives, now recalled from
Axis Europe, whose services ought to be utilized by the Government
as early as possible, before their contacts and experience have
lost their primary value.
J.C
full JOHN FRANKLIN CARTER
(Jay Franklin)
PSF Carter
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
April 11, 1941.
MEMORANDUM ON REPORT FROM I.T. & T. REPRESENTATIVE AT TEHRAN (IRAN)
CONCERNING POLITICAL AND ECONOMIC CONDITIONS IN PERSIA (Jan. 12, '41)
Iran is probably headed for a major crisis; dissatisfaction with
the present regime is growing rapidly.
Construction of railroads, roads, housing and government build-
ings increases on a wide scale despite shrinkage in public revenue.
Living costs have increased, causing fear of inflation, with resulting
gold buying and demand for dollars. Twenty new German printing presses
for paper currency should soon be in operation. Graft is rampant
everywhere.
Iran's wheat reserve is low and bad crops have caused negotia-
tions for food purchases from Indian and Soviet Russia. There is a
meat shortage, due to gransfer of livestock to the U.S.S.R. Anglo-
Iranian oil exports sharply reduced, causing a decrease in oil royal-
ties, necessitating a British guarantee for 1941 on royalty account.
Presment Government now encourages poppy growing; foreign opium
sales used to increase Iranian revenue, preferably in dollars paid
in advance. Shah rumored to be transferring fortune to U.S.A.
Germany's Fifth Column is strong, with representatives in all
key communications points. Able to take over country. Germany un-
able to deliver iron, steel, copper or aluminum. Iran Ministry of
Finance urges placing all Government orders in Germany, regardless
of price. No dollar credits are available. 250 Soviet Commissions
recently arrived; Soviet movies encourage revolt among minorities,
especially armenians. General unrest throughout country, with many
pro-German and pro-Soviet sympathizers is cause for deep concern.
J.F.C.
full
JOHN FRANKLIN CARTER
(Jay Franklin)
Carter
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
April 15, 194d.
MEMORANDUM ON NAZI NEWSPAPERS IN BEENOS AIRES, BASED ON LETTERS
FROM AN AMERICAN BUSINESS REPRESENTATIVE (as of March 20 & 28).
"EL PAMPERO", founded with funds supplied by German Embassy and
maintained with German subsidy, was originally given away on the
streets. Is now sold in B.A. with free disbribution in provinces.
Editor, Senor Oses, has been in jail several times. Paper has little
influence but may have some effect on & "split-the-difference" basis
in assessing war-news from British and Axis sources.
"TRANSOCEAN" (Nazi) NEWS AGENCY is supplied with Axis news via
Transradio. This Nazi propaganda was distributed pretty widely at
one time, is now used chiefly by "El Pampero".
"DEUTSCHE LA PLATA ZEITUNG", prosperous and well-edited, circulates
among Nazi Germans. It uses "Transocean" news service.
"ARGENTINISCHES TAGEBLATT", less circulation than the Zeitung, is
anti-Nazi and pro-British in politics.
"BANDERA ARGENTINA", now working for the Nazis, uses Transocean
news service. Paper was founded in 1930 after Uriburu Revolution
and was organ of the Legion de Mayo (semi-Fascist organization),
which has declined in influence since the Justo Administration.
Paper is nationalistic in tone, small circulation, and has recently
gone completely pro-Nazi. Maximum printing is not over 5,000 copies.
Average printing for past ten years about 2,000 copies. The differ-
ence probably represents German subsidy. Paper is not distributed
by newsboys, but is carried by a few large news-stands and has a
small amount of mail circulation.
"LA RAZON" and "NOTICIAS GRAFICAS" (latter founded by IA NACION)
are not under German influence; latter is pro-A_ly. IFC-
JOHN FRANKLIN CARTER
(Jay Franklin)
ps carter
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
MEMORANDUM ON SWEDISH-FINNISH-GERMAN-RUSSIAN SITUATION, REPORTED
R.W. SEELEY, MANAGING DIRECTOR FOR SWEDEN, GENERAL MORORS CORP.
Mr. Seeley points to Swedish-Russian history as evidence that
permanent hostility is assured, while Germany is developing Sweden
and Findand as buffer-States against the Soviet. Germany much dis-
turbed by Russo-Finnish War and by treaty providing for construction
of railroad linking Salla to Kemijarvi and so to Haparanda (near
Swedish iron-mines) and for naval base at Hango, threatening Aland
Islands. German reactions to this threat are listed by Seeley:
1) Germany sells Finaand guns, ammunition etc.
2) German asks Sweden to increase her Eastern defenses.
3) German intervened in Finnish-Russian outbreak last June.
4) Last October, when fresh Russian attack on Finland was
threatened, Germans sent seven transports of armed troops into Finland.
5) Germans have asked Swedish and Finnish press to avoid all
reference to German-Russian relationships.
6) Germany taking all the nickel ore from the Finnish mine
at Salmijarvi, despite agreement to divide output with Russia.
7) Swedish armament budget for 1941 calls for two and a half
billion Kroner.
8) Germany raises no objections to imports into Sweden and
Finland from America. bing anyious to trengther their economy
9) Sweden is not being sucked dry as Norway and Denmark have
been.
for
J.F.C.
PSFT
JOHN FRANKLIN CARTER
Gay Franklin)
carter
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
April 18, 1941.
MEMORANDUM CONCERNING CONVERSATION BETWEEN WENDELL WILLKIE AND
XXXXXX LORD HALIFAX.
Lord Halifax told me that he had had a conversation with Mr.
Willkie in New York on April 16. He said that Mr. Willkie had ob-
served that só many Americans considered you to be "indirect and
tricky" (an interesting statement from such a source) that you ought
to speak out directly, honestly and boldly on current issues.
Lord Halifax said that Mr. Willkie had observed that there
were times when the President should go against public opinion,
real or imaginary, and rely on time and leadership to win support.
Lord Halifax said that Mr. Willkie had also stated that it
was desirable to introduce some further controversial measure into
Congress, in order to give public opinion "something to chew on"
and combat the present apathy.
My judgment was that all of these remarks had a bearing on
the convoy issue and reflected a desire that this Government take
further action in the Atlantic struggle. Lord Halifax seemed to
be rather deeply impressed with the idea that Mr. Willkie is playing
a very shrewd political game. The British Ambassador told me this
under circumstances of confidence so I am not sending a duplicate
to the State Department.
J.C.
Ja Jack Caster Folder
felled
PSF
5-41
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
"We, the People"
and
WASHINGTON, D. C.
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
May 12, 1941.
MEMORANDUM ON CONVERSATION WITH MR. T.G. CORCORAN.
I saw Tom Corcoran for the first time since the election this
morning. He had just returned from a business trip to the Mid-West,
and made some observations which seem to deserve consideration.
He said that Lindbergh had won the "debate", so far as public
opinion west of the Alleghanies is concerned, and that the only
thing which could count against the isolationist mentality now
growing would be action or catastrophe. Such action as the despatch
of a real air-force to Chung-king or the seizure of Dakar was indica-
ted, in his opinion; general catastrophe to the British might also
have the same effect in galvanizing American action.
In this connection, he said that the slogan of "Aid to England"
was no longer effective. For certain large groups of Americans,
England is as unpopular as taxes or conscription. This includes not
only the Irish, but the Poles, Czechs, Germans and some of the school-
book Americans. He believes that they can be brought into unity by
muking the issue "Beat Hitler!" and allowing the necessary means--
taxes, conscription, aid-to-Ingland, etc.--to be regarded merely as
XXXXX the necessary means to a national end. Since he has always in
my experience been & shrewd interpreter of public opinion, I consider
it pertinent to note that Mr. Corcoran feels the tide running against
our foreign policy just as he felt it running against the Supreme
Court Bill.
J.C.C.
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
Ps Farter
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
July 22, 1941.
Metropolitan 4113
MEMORANDUM ON THE STATE OF PUBLIC OPINION IN THE MID-WEST REGARDING THE WAR
The attached report was prepared for the use of my office by a
representative of "Fortune" magazine, in the course of a recent trip to
Chicago on assignment to report on the "America First" situation.
It is interesting, objective and seems to me convincing evidence that
public opinion in the Mid-West is "fundamentally sound" (as Mr. Hoover
used to say). I quote the concluding paragraph:
"I went West with the conviction that nothing short of the gravest
sort of 'incident' could rouse the American People from their apathy. I'm
not at all convinced now that the theory of 'public apathy' is correct.
I gathered the impression, on my trip, that the country realizes war is
not far off; that our participation in it is inevitable; and while there
unquestionably exists a desire to make the most of present opportunities,
I believe that desire is prompted largely by the awareness that this is
the 'grace period', during which the wise will make provisions for the
hard times ahead."
Jee
.F.C.
REPORT ON THE STATE OF PUBLIC OPINION REGARDING
THE WAR.
In order to sound out sentiment regarding the war, I drove to Chicago
via Cumberland, Md., Pittsburgh, Pa., Cleveland, O., Toledo, 0., Detroit, Mich.,
and Gary, Indiana. On the return trip, I took a different route, though Fort
Wayne, Ind., Mansfield, 0., Wheeling, W. Va., Clarksburg, W. Va., and Win-
chester, Va..
Strangely enough, not once, throughout the entire trip did I hear the
war mentioned, unless I myself brought the subject up. I am not certain that
this can be ascribed to "public apathy". I am not sure that the public is
APATHETIC. The vast majority of the people with whom I talked, gas station
attendants, hotel porters and bell boys, business men, hitch-hikers, traveling
salesmen, storekeepers, were convinced that it was only a question of time
before we should be at war. They said so, not resentfully, thogh they admitted
they would prefer to "keep out of it if possible; but with the obvious con-
viction that the thing was unavoidable, a nasty job that in all probability
would have to be faced.
The peole I observed in restaurants and other public places, scanned
the war headlines of the newspapers. Few of them, however, appeared to read much
below the headlines. Few of them displayed any great interest in radio reports
of the war; and that few belonged almost entirely to what is sometimes described
as the "intelligentsia".
But the principal occupation of the masses seemed to be with their jobs.
Workers, many of whom had suffered from long spells of unemployment, were prof-
iting by the war market; were back at their jobs again, earning good money,
better in fact than many of them had ever earned before. Their sole preoccu-
pation seemed to be in making hay while the sun shone; in getting their debts
paid off, their mortgages paid off. In short, they seemed to realize that the
-2-
present golden opportunity might not be open to them for long, and that they
had better profit by it while they could.
But if I found little sentiment for war, it is equally true to say
that I found little sentiment for "peace at any price". I got the impression
that even the vast majority of isolationists, once they were confronted with
the actual fact of war, would roll up their sleeves and go to work to get the
unplesant task of finishing it over as quickly as possible.
A conversation I had with a filling station attendant in East
Liverpool, Ohio, was typical.
"How", I asked him, "do you folks feel about the war out here? Do
you think we are going to get in it?"
I could see him bristle. Obviously, he felt that this was a re-
flection on the Middle West, and his back was up.
"We don't like war", he said, "and we're not looking forward to
it. But if it comes, you'll probably find that we'll do our part a lot better
than most of you people back East. We already are. You have only to look at
the figures on the men who've gone into the Army and Navy from out here, and
you'll find that we've sent a lot more of them than your Eastern States have."
A garage mechanic in a small town in Indiana gave me much the
same kind of a response. He admitted that the people in his section didn't
want war. "They're afraid it's going to boost taxes", he explained, "and we
haven't yet got the last war paid for. But if it's got to come, we'll be just
as much in it as anybody else. "
A Chicago business man, admittedly an isolationist, also admitted
that war probably was unavoidable. Although he was of the opinion that every-
thing possible should be done to keep out of it, he was equally certain that
if we did get in most isolationists would "line up behind the President".
An old Army "buddy" of mine, a chap with whom I served in France
during the last war, I found rabidly "America First". The reasons he gave were:
the last war hadn't settled anything; the British were just trying to inveigle
-3-
us into fighting for them again; and that no matter what happened in Europe,
the Germans couldn't come over here. But he confided, when I left him, that if
we did get into this show, he'd rather like to get back in the same old outfit
again.
I went West with the conviction that nothing short of the gravest
sort of "incident" could rouse the American People from their apathy. I'm not
at all convinced now that the theory of "public apathy" is correct. I gathered
the impression, on my trip, that the country realizes war is not far off; that
our participation in it is inevitable; and while there unquestionably exists
a desire to make the most of present opportunities, I believe that desire is
prompted largely by the awareness that this is the "grace period", during which
the wise will make provisions for the hard times ahead.
XXX
THE WHITE HOUSE
WASHINGTON
May 15, 1941.
MEMORANDUM FOR
S. T. E.
Will you read this, thank
Jack Carter and return for my
personal files?
F. D. R.
Jack Carter Folde
PSF
May 19, 1941
Dear John:
The President has asked me to thank
you for your thoughtfulness in sending him that
memorandum on Japanese fifth column activities
in the Philippines. He is delighted to have so
full a report on this highly important phase
of Japanese activities in our far eastern pos-
sessions and is most appreciative of your thought-
fulness in making it available to him.
Very sincerely yours,
STEPHEN EARLY
Secretary to the President
Mr. John Franklin Carter,
1210 National Press Building,
Washington, D. C.
wdh/mdg
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
with
WASHINGTON, D.C.
"We, the People"
"The Wook in Washington"
Metropolitan 4112
Metropolitan 4113
May 14, 1941.
MEMORANDUM ON JAPANESE "FIFTH COLUMN" IN THE PHILIPPINES.
The attached, lengthy memorandum, "Japan in the Philippines",
was sent to the Life-Time-Fortune magazines by their Far Eastern
correspondent. It contains a disturbing picture of Japanese in-
trigues in the Philippines, illustrated by similar intrigues in
Manchuria, North China and Shanghai, French Indo-China, etc.
Emphasis is placed on the special organization of the Japanese
"colony" at Davao, Mindanao; on Japanese domination of the fishing
industry; on Japanese retainers to Filipino politicians--between
six and eighteen members of the National Assembly are on the
Japanese payroll--and on the curious divergence between Japanese
propgganda in the Islands and in Japan proper. In the islands,
the Japanese emphasize friendship and peaceful economic collabora-
tion. In Japan, the Filipinos are represented as savagely anti-
Japanese and "incidents" showing Filipino abuse of the Japanese
are freely reported in the Japanese Press.
While Mr. Fisher's report necessarily is a one-man view of
an enormously complicated situation, it is interesting and informa-
tive. For this reason I have taken the liberty of submitting the
entire memorandum in addition to this brief summary. Incidentally,
Fisher reports coordination between German, Japanese, Italian and
Frenco-Spanish groups in Manila.
JFC.
Research from William Fisher (Manila) to David Hulburd
undated - received April 8, 1941
JAPAN IN THE PHILIPINES
A part of the material used in this report has been collected over"a period of two
years. Its basis, however, is information collected during my present stay in the country
and includes interviews with Americans who have traveled widely in the archipelago or have
made a special study of Japanese Fifth Column activities in Manila. The United States
army has also been helpful in supplying certain information. In addition, I have combed
various vublications in the Philippines and the Far East to either support or suggest
various conclusions.
It is my hope to make this piece the first of a series dealing with Japanese activ-
ities in southeast Asia, as I have kept files on this subject for some time as it is re-
flected in the Netherlands East Indies, French Indo-China and Thailand. In discussing
Japanese Trojan hourse activities in these countries it has been interesting to me to see
how certain similarities and certain differences exist. Another angle which is of help
in looking ahead to the ultimate aims of Japan in southeastern Asia 13 the opportunity
offered at present to guage the various stages of Japanese Fifth Column activity in the
several countries concerned.
In a recent visit to Manchukuo I was impressed by the fact that here full blown
Japanese imperialism was in force: in Manchukuo the Japanese had realized their aim in eb-
solute control. The native population served as hewers of wood and drawers of water for the
Japanese. I was frankly surprised to see that the Japanese had taken over all tasks that
offered a reasonably decent livlihood and fairly acceptable working conditions. For instance,
the Chinese and Manchus in Manchuluo do not serve as servants in the better hotels, they do
not drive texis, they infrequently work as clerks in Japanese - owned stores ⑉⑉ all these
tasks and many like them have been taken over by the Japanese because they are "too good"
for the natives. The natives are occupied with the low, the menial and the unpleasant
- 2 -
William Fisher to David Hulburd
received Apr.8, 1941
tasks, with the exception of the small class among them with position end education willing
to serve as puppets for furthering the aims of Japanese imperialism.
In North China I was struck by the fact that here was an excellent laboratory in
which to see Japanese imperialism in transition. In Peking the hotel servents, taxi
drivers and the like were still Chinese. A few Chinese merchants willing to play ball
with the Japanese were still allowed to do business. Even a few American and European bus-
iness men were hanging on in the hope that matters might change for the better. But over
everything there hung the perfect pattern of Japenese imperialism Manchukuo. Japanese
stores were springing up like mushrooms along the main business streets. If a Japanese
business man saw a property he wanted he would go to the Chinese merchant and demand occu-
pation: the sale price was set by the Japanese and the Chinese took it and liked it. If he
refused either the puppet authorities or the Japanese military saw to it that he got out.
In this case he would probably get much less than was offered to him in the first place.
This applied to private houses as well 26 businessproperties. Many Chinese families that
had lived in Peking for generations and kept clear of politics were called on by the
Japanese military of members of the Special Service Corps (the Japanese equivalent of the
Gestapo) and told to get out. I know of no case in which payment was not made unless, of
course, it could be proven that the owner was & Free China sympathizer and therefore
"dangerous". Those Chinese who had thus far been allowed to remain in their homes lived
in daily fear of being thrown out. Every few days another Japanese search party would
pound on the red gate and demand admission to "examine" members of the household. Chinese
women of the better class under fifty years of age did not dare venture on the streets of
Peking for fear of being either mauled or "searched" by Japanese sentries or any soldier
who took it into his head to have a little fun. Last October Peking presented a very
interesting but tragic picture of Japanese imperialism in transition.
A ricsha coolie working for an American friend of mine sized up the feeling of the
Chinese in Peking toward the Japanese in a few brief words of piggin English one afternoon.
- 3 -
William Fisher to David Hulburd
Received Apr.8, 1941
He had been out with his "master" to view the Temple of Heaven, and OIL their way back to the
city they were passed by several truckloads of Japanese soldiers singing uproariously some
military song. The sun which was then setting behind the purple Western Hills beyond
Peking's walls burnished their bayonets. My friend's man halted between the shafts of the
ricsha, spat emphatically on the ground and muttered; "By um by cut off Japanese heads then
no can sing."
In Shanghai the procedure of Japanese imperialistic jiu jitsu had not advanced as
much as it had in Peking. The Japanese had about one more year to go there before things
of
would be as tough as they were in Peking; but all the earmarks/their usual procedure were
evidenced. Foreign business was being subjected to petty annoyances that made it all but
impossible to operate. Foreign residents were being subjected to all sorts of inconveniences
in order to make life all but unbearable for them. Foreigners living in areas bordering
the International Settlement found themselves barricaded in for several days at a time without
access to food supplies. Chinese were being terrorized whenever the opportunity offered
itself. Chinese business men were being made to come under Japanese control by threats of
assassingtion. Foreign business men who could be bought off with promises of Japanese
lenience in the future were "playing ball" with the Japanese military; in time they would
wake up to the fact that the word of the Japanese is about as good as their bonds. The de-
funct administration of the French Concession was being dictated to by the Japanese, and the
big sell out which has since taken place in the International Settlement was well under way.
From a first hand acquaintance with the Shanghai problem for several years I am convinced
that the unbearable situation which exists today is as much due to incapability and dis--
honesty in the Shanghai Municipal Council, the group composed of British, American Chinese
and Japanese for the administration of the International Settlement, as anything else. The
British leadership in the Council has been particularly to blame; there is only one thing to
describe it "sell out".
- 4 -
William Fisher to David Hulburd
received April 8, 1941
I stress this point here because the same thing is beginning to take place in Manila
today. I have obtained reliable information through unimpeachable American sources that
more than one leader in the American community here - but one in particular - 18 dealing with
the Japanese because he 18 afraid that when the time comes for them to take over in the
Philippines he will lose his meal ticket. The matter would not be 80 serious if this man
were not in a position of high authority. I have been told by people working on civilian
emergency committees that he is doing everything to hemper the unification of American opinion
in the Philippines, thus furthering the interest of the Japanese and their German and Italian
colleagues in their present Fifth Column campaign here.
H
Japanese Plan: I have been a little tedious in this introduction in an effort to put
over the point that the Japanese do have a plan of preliminary or Fifth Column activity
leading to ultimate imperialistic cortrol such as now exists in Manchukuo. This point is not
generally appreciated among Americans in the Philippines, and it may have escaped many of them
at home. The fact of the matter is that the Japanese are no less astute than the Germans in
this matter. In my visit in French Indo-China I saw clearly the groundwork of Japanese Fifth
Column activity there two years ago; but no Frenchman would believe it. The Japanese show a
marked ability to adapt their activities to the requirements of any particular country in which
they happen to be working. In French Indo-China they concentrated primarily on creating unrest
and anti-French sentiment in the agrarian population. They also bought as many officials in
the government as they could.
The effectiveness of these two phases of operation in French Indo-China were proven
when the Japanese army was ready to march in last fall. The peasants. who had good reason to
hate the French, rose up and created trouble, thus diverting a part of the army which might
have been useful in fighting the Japanese along the China border. Secondly, "bought" officials
in high places helped the Japanese from the inside. The greatest assistance which they
rendered was in calming the French colonials by assuring them that the Japanese presented no
threat and would never march into French Indo-Chine.
- 5 -
William Fisher to David Hulburd
received April 8, 1941
I cite this example in relation to the Philippines problem because the same sort of
thing is being carried on in this country today. The Japanese are fostering unrest in the
Philippines provinces, in some cases under the guise of "communism". The Manila papers in
the last few weeks have also been full of reports of uprising among the Moros in Mindanao,
where the big Japanese colony of Davao is located. These Moro "outlaws" are for no apparent
reason attacking buses on the roads and shooting up innocent Filipinos in their homes and
villages. There has been sufficient proof that the Japanese are in some way back of this for
the Manila Daily Bulletin to devote a full editorial to the subject. In the Philippines the
advance guard of Japanese imperialism is also doing everything possible to buy up highly
placed Filipino officials, something which I want to deal with more fully a little later on.
All this so closely approximates the plan in French Indo-China, with certain allow-
ances for local conditions, that you can almost tell from one month to another what move the
Japanese Fifth Column will make next.
This respect for local conditions is a surprising part of Japanese Fifth Column act-
ivity, for on the whole we have generally accused them of doing things "by the book". The
general outline is similar in all places, it is true, but there is lots of leeway left for
local conditions. In Bangkok I found through direct contact with many Siamese pretty much
how the Japanese work there. When I was in Bangkok Japanese Fifth Column activity was
pretty much in the propaganda stage; there was not any substantial evidence that they had
gotten into the government. That was two years ago and since then they have been able to
buy up some highly placed officials, although I am convinced that the bulk of the Siamese
people are learning to fear and hate the Japanese, and this is true of a large class of in-
telligent and patriotic Siamese in Bangkok. Whether the pro-Japanese clique or the unim-
peachable few that still have some say 30 in Signese affairs will come out on top still
remains a question of serious moment in Asia.
The Japanese Fifth Column plan was operating in British Malaya and the Dutch East
- 6 -
William Fisher to David Hulburd
received April 8, 1941
Indies, again with due respect to local conditions, in a similar manner. In the latter country
there was one native political party subsidized by the Japanese, and efforts were being made to
buy up the vernacular press. Jananese spies in the form of Barbers, photographers or tradesmen
were stationed in every city; in fact I seldom found a town in Java of over 2,000 people who
did not have Japanese photographers and barbers.
Before dealing with the Japanese Fifth Column in the Philippines I would like to
summarize these various methods of operation in their various stages:
I - PRELIMINARY WORK
1 "Educational" work in Japan to interest the public in a given field of proposed opera-
tions. This is done by filling the papers with articles on the countries in which eventual
conquest will take place,
2. Propaganda work in the victim country to assure government officials there that the
interest S of the Japanese are purely "economic"
,
3. Secret propaganda work carried out by Japanese agents among the native population.
The people are told that when the Japanese take over they will be freed from their white
oppressors. The Pan Asiatic idea is used extensively.
4. The establishment of secret agents as barbers and photographers in importent centers
and at towns near airfields or other places of military interest. Barbers and photographers
are often high ranking army and nival officials.
5. The arrangement of student tours to Tokyo in which young college graduates are taken
to Tokyo and treated to lavish hospitality and cultural talks. Efforts are made by the
Japanese at this time to buy off a few of the more intelligent ones or those likely to rise
to high places quickly or exert influence in some other way.
6. The purchase of vernacular papers by Jananese or when this is not possible, the
subsidizing of native editors so that they will use pro-Japanese stories and omit news on
what the Japanese are doing in China.
- 7 -
William Fisher to David Hulburd
received April 3, 1941
II - - LAYING THE FOUNDATION
1. Efforts to buy up colonial officials or, as in the case of the Philippines, government
officials. Either outright payment is made or these contacts are promised soft jobs after the
Japanese get full control.
2. Inciting the Japanese public at home to believe that either the colonials officials or,
as in the case of the Philippines, that the native populations are anti-Japanes.
3. The promotion of strikes, riots or fake communist movements to ruin morale and give
the Japanese an ultimate excuse for stepping in.
4. The creation of incidents that will endanger local Japanese communities so that the
Japanese will have to intervene in their protection. This occurred at Peking and 1s likely to
occur at Davao in the Philippines.
III - THE IMPERIALIST STRUCTURE
1. The march in at the most auspicious moment when internal unrest is at its height,
sabotage by boughtofficials has ruined morale and when the international situation is ripe.
2. The creation of puppet regimes and the ousting of foreign interests. The terrorization
of native populations and assassination of individuals formerly disloyal to the Japanese. The
creation of Japanese schools, full control of the press, finances, business and banking. The
debasement of the native population whereby all but & few pumpets are deprived of the means of
making a decent livlihood.
This program is full blown in Manchukuo. In occupied China it is entering stage III.
In French Indo-China it is in the last part of stage II and the first part of stage III. In
Bangkok it is in stage II. In British Malaya and the Netherlands East Indies it is will along
on stage I. In the Philippines it is well along on stage I and entering stage II with con-
siderable rapidity.
Japanese Propaganda About the Philippines: In the course of my work I sell all the
English language newspapers printed in Japan as well as numerous other English language
- 8 -
William Fisher to David Hulburd
received April 8, 1941
periodicals printed there. I also have access to translations from various vernacular papers
and other reports. It is surprising with what frequency the Philippines problem is stressed.
The Japanese are being educated on every possible phase of the Philippines, and for this
purpose the larger Tokyo newspapers as well as Domei news agency (official) maintain corres-
pondents in Manila. The resources of the Philippines are described in glowing terms to
Japanese readers.
The Japanese have for several years been sending experts in various fields to study
Philippines resources. One of the highest Japanese government railway officials, for instance,
spent Aix months some time ago studying the transportation system in the islands. He went back
to Japan with full consent of the railways. A mining engineer has told me that Japanese mining
experts wandering through the wildernessof Mindanao have found out more about the latent
mineral resources there than American engineers have been able to after more or less intensive
research lasting several years. The reason the Japanese have been able to do better is that
they have sent more men and they have spent more time in the jungle.
Historical Interest: Through different kinds of propaganda being carried out in Japan
the people there are being convinced that Japan bas a real historical claim to the Philippines.
It is pointed out that in the 17th century Japanese settlers stopped at three points in the
Philippines, including Manila, San Muguel and Delao, This will in time give Japan an oppor-
tunity to renew her claims in the Philippines.
In general, present propaganda work carried out in the Philippines attempts to prove
that the Japanese have nothing more than an econimic interest in the country and welcome the
advent of independence because at that time the Filipinos will be independent from their
American oppressors.
However, the Japaness are somewhat outspoken in their plan for the development of the
Philippines after 1946. One of the best known Japanese experts on the Philippines question is
Viscount Tadashiro Inouye. He 1s also an expert on Formosa and tropical colonization among
- 9 -
William Fisher to David Hulburd
received Apr. 8, 1941
the Japanese in general. He takes a great interest in golf and this brings him to the Philippines
to play at tournaments at the Wack Wack country club in Manila. This is, of course, a mere co-
incidence.
Viscount Inouye's ambition is to bring the Japanese system of rice culture to the Phil-
ippines, just as it has been brought to Formosa. The Philippines, he claims, produces only
1,000 kilograms of rice per hectar, while Formosa produces 2,700.
The Viscount also raises a point that has become very populer with the Japanese when
be states that the great reason why Japan cen't do more business in the Philippines and consume
more of the economic resources of the islands is that the currency is $00 high and too stable.
This cen, of course, be easily remedied after 1946.
"Japan is the best friend and tutor of the Philippines." says Viscount Incuys. "This
is shown in the case of Formosa". Japanese methods are better suited to & small country like
the Philippines than the largo scale American methods." The Viscount made these statements in
a speech in Tokyo, and he 1s careful to repeat such friendly sentiments during friendly golf
games at the Wack Wack country club in Manils. He can cite the case of Formosa with a degree
of assurance that he won't be interrupted in Manila, because most Filipinos are ao interested
in their own politics that they havehad no time to investigate the tragic plight of the sn-
slaved Formosans. who are among the most wretched of Japan's subject peoples.
Until a about a year ago Japanese officials, among others the former Foreign Minister
Arita, were busy assuring the Filipinos that Japanese aims in the archipelago were purely
economic. There is less of this sort of thing hear in Tokyo these days; the Japanese are
being a little more frank about it. Without putting the Filipinos into a panic they are
gradually making them understand that Japan wants to assume control after America gets out,
bet of course the Japanese rule which will be imposed at that time will be a benificent one
and all Filipinos who arenice to the Japanese now will get their reward.
- 10 -
William Fisher to David Hulburd
received April 8, 1941
Japanese Sine Que Non: It is not necessary to do much theorizing about Japan's aims in
the Philippines since these have been put down in black and white on several occasions by the
Japanese themselves. The most interesting examploe of this sort of thing I have run ACROSE
is a memorandum which they submitted to the Joint Committee of American and Filipino experts
that came out to examine economic prospects in the islands at the independence legislation
Was first coming into effect in 1935. I want to quote rather fully from this report as it is
a statement coming from the Japanese themselves on what they intend doing in the Philippines.
The report leads off by saying that Japan, the U.S. and the Philippines offer a good
illustration of the sort of triangular trade arrengement which Mr. Cordell Hall fervently
advocates. By this, the report states, is meant that the surplus merchandise balance in favor
of the Philippines in its trade with America is offset or contracted by 3 balance against it
in its thade relations with Japan. Philippines purchases of cotton textiles from Japan help
to finance Japanese raw cottor purchases from the United States, whereby in return the United
States is able to buy more from the Philippines. The report states that the Japanese do not
want to upset this status, as would be the Case of the customs tariff were reised on Japanese
imports.
The report then states that in the Philippines Japanese and American goods have their own
respective fields in the market. The Japanese goods, it is claimed, are more attractive to
the common people, while American goods make en appeal to people who are Able to afford to buy
automobiles, trucks, better quality cotton cloth, tobacco, canned goods, leather and paper.
The Japanese specialize in Low quality cotton cloth, rayon, lamps, porcelain, knitted goods,
toys, bicycles and accessories.
"In order to bring about the prosperity and welfare of the Laborers of the archipelago,
for which President Quezon and the Filipino people are both working, we have to, first of all,
supply them at reasonable prices with such articles as they are most desircus of obtaining.
For this purpose, we believe, here will be none better than Japanese goods,' the report con-
tinues.
- 11 -
William Fisher to David Hulburd
received April 8, 1941
"It is quite advisable for the Philippines to put in force the so-called economic control
in the archipelago through Japan, America and the Philippines as to capital, machinery and
labor, adapting an ideal policy of open door and equal opportunity for all nations. Only in
this way can she foster her national industries and increase the purchasing power of her
people and thus benefit these three nations concerned, and in the long run perhaps all the
nations of the world."
This is rather amusing in the light of the fact that at the time the report was made
Japan was preparing to pounce on the whole of China and slam the Open Door in the face of all
nations there.
The report now goes on to say that the geographical positions of Japan and the Philippines
will naturally affect the economic relationship of the two countries. The Philippines, it is
pointed out, produces abundant agricultural and natural products, especially minerals, which
she can sell to other countries. On the other hand, Japan, being an industrial country, will
have to purchase her materials from abroad. This means that Japan and the Philippines are in
a satisfactory position to co-operate with each other, continues the report.
"No one will deny, we believe, that there is a possibility of Philippine raw materials,
such as mentioned above, finding a pormising market in Japan as the development of natural
resources in the islands is accelerated.' We therefore are of the opinion that economic control
and independence can be better attained among other things by taking advantage of the tremen-
dous possibilities offered by the Japanese market As is shown statistically, we have been
exerting our efforts and will do our utmost to attain a trade equilibrium between the Phil-
ippines and Japan, but there lies a stumbling block in our course toward that goal; that is
a constitutional restriction as to the development of the natural resources in the archipelago.
If this restrictive ban be either completely or partly lifted our course will be clearer and
our pace much accelerated."
This report was presented by the Japanese Chamber of Commerce in Manila to the Joint
Commission of Filipino American exports, but it has the earmarks of official sanction from
- 12 -
William Fisher to David Hulburd
received April S, 1941
Tokyo, It in important to remember that 1t was presented some years ago, when the Japanese
were most andous that nothing should happen to frighten the Filipinos out of their hopes of
independance. But the earmarks of the basic Japanese policy toward the Philippines ATC still
theres note how clearly 11 is brought out that Japan must have a free hand in developing the
natural resources of the Philippines. The restrictive ban which provides that in so far as
is possible the Filipinos themselves should share in the development of the natural resources
18 tremendously irkoome to the Japanese.
Buickes versus Ricshas: The other day I asked a Filinino what would happen if the Jap-
anese took over after 1946 - 02 before. "Well, he said, "we'd have ricsbes instead of
Buicks and 1t isn't hard to gueus who would be pulling the ricabas." He was indicating that
the Japanese idea of a sort of new kind of industrial slave economy 13 getting ACTOSS. In
other words, Japan-imperialiam entails hard work for the conquared people in order to supply
Japan with raw materials which whe can turn into menufactured goods end cell back to her
colonies.
If the Japanese are to bring the Philippines into their sphere of economic influence,
and that is their expressed intention now, they will have to do two things. First, they
will have to deprociate the currency end reduce the standard of living. Second, they will
have to do away with present Laws which protect Philippines economic resources from for-
eign exploitation.
After independence the THE tural resources of the Philippines will present of temptation
to the Japaneso toallow for much delay in taking over. The Philippines iron reserves
present 2 desirable complement to the coal which Japan has already taken over in northern
French Indo-China. in the Philippines there 18 iron, chromium and manganese. The mountain
province of Luzon now produces more gold than Alaska. Japan already takes a great deal of
lumber from the Philippines, The Japanese control the hemp industry in Derao and they
- 13 -
William Fisher to David Hulburd
received April 8, 1941
intend to expand in the near future.
Hemp from Davao: Their largest Japanese colony in the Philippines is located in Davao,
the famous hemp raising region in Mindanao. The island of Mindanao is in the extreme south
of the Philippines archipelago; it is the largest and richest island in the group. In and
around Davao there are about 20,000 Japanese, comprising a close-knit and well organized
community. The Japanese have brought with them their temples, their manner of dress, their
language and their customs. The men have brought Japanese wives and they seldom intermarry
with the native population.
A favorite quip you hear around Manila is that whenever President Queson goes down to
Davao he has to get a visa from the Japanese Consulate-General in Manila.
Some years ago an American congressional party visiting the islands made a side trip to
Davao. The Congressmen did not know much about Philippines geography and when their boat
docked at Davao one morning they all thought that the captain had made a detour and was taking
in one of Japan's own islands.
While I was obtaining information for this report I was able to obtain proof, through
American official sources in Manila, that the Japanese Consulate-General Davao is not under
the Japanese Consulate-General in Manila, but reports directly to Tokyo. In other words, the
Japanese think Davao is so important that it has a separate system of keeping in touch with that
colony; Davao is 80 important that the ordinary channels of diplomacy will not suffice there.
The total population of Mindanao is now about two and a quarter million people: Davao
province itself has been showing en increase of population that is nothing short of remark-
able in the Philippines. In twenty years the population has increased seven times. The port
of Davao holds fourth place among the ports of the Philippine islands, shipping hemp, copra,
logs and lumber. Davao has produced more than 86,000,000 kilos of hemp in one year, most of
this through Japanese enterprise.
The present Japanese colony at Davao is, however, looked upon by most Americans who have
" 14 -
William Fisher to David Hulburd
received April 8, 1941
studied the problem as but a stepping stone to further development of the island by the
Japanese. There are several interesting elements that come into the picture. In the first
place, Mindanao is largely inhabited by Moros, who do not like the Filipinos and feel that
they have been let down by the Americans. It would be very easy for the Japanese to create
incidents between the Moros and the Filipinos and thus get an excuse for coming in and
taking over. After independence the Filipinos will not be able to prevent the Moros from
making occasional forays against Japanese residents. The Japanese can then take full control
on the pretext of giving temporary protection to their nationals living in Davao.
Fabulous Mindanao: Americans who have had long experience in Mindanno and en unquestion-
able integrity in their opinions have told me that on the whole the Japanese know more about
this great southern empire in the Philippines than we do. I have already mentioned the
manner in which the Japanese have investigated latent mineral resources in Mindanao. One
American government official in Manila tells me that there is proof that recently the Jap-
anese government has dispatched road experts, agriculturalists, botanists and others to study
the island. In addition, the Japanese have made thorough surveys of the coastline. An
American adviser connected with the Philippines Commonwealth Government told me that the
Japanese have better maps of the interior of Mindanac than either the American or the
Philippines governments.
American engineers and others who have been in Mindanao always come back raving about
its wealth of natural resources. They usually speak of it as "America's last frontier".
They claim that for its development it needs the capital and technical knowledge which the
Filipinos do not possess as yet. An example of what can really be done is the successful
pineapple plantation owned by an American company which also operates in the Hawaiian
islands. A third of its product comes from Mindanao but is sold as Hawaiian pineapple.
The Philippines product 1s just as good but the American public has been sold on Hawaiian
pineapple. The agricultural and mineral resources of Davao are said to be practically
- 15 - -
William Fisher to David Hulburd
received Apr. 8, 1941
endless. It is no mere co-incidence that the Japanese have located their largest colony in
the Philippines there.
An important fact to be noted in passing is that at Davao are found the only successful
examples of large scale farming in the Philippines, with the exception of the American-run
sugar and pineapple plantation in Mindanao or other parts of the archipelago. In other
words, the Japanese have beaten the Filipinos on their own soil and compare favorably with
the best run American projects.
The Japanese look upon their colony at Davao almont as Japanese soil. This 18 indicated
by the consular arrangement they have there, already described. It is also indicated by an
interesting little drama that has been worked out there in the last few weeks. On March 2
last, Count and Countess Kocho Ohtani made their second visit to Davao on board a Japanese
vessel. The count and countess went ashore and received the enthusiastic plaudits of the
Japanese populace there. They stayed at the Japanese consulate, visited Japanese schools and
engaged in other activities which gave rise to a great deal of flag waving. The flags which
were waved were white flags with red spots in the center.
All this would not be of very much interest if it were not for the fact that the count
and countess are directly related to the Imperial Household of Japan. Countess Ontani is the
sister of the Empress of Japan. The count is the Chief Abbott of the Buddhist religion in
Japan. Their tour in this part of the world included a visit to North Borneo and the Celebes.
But the point of the trip was doubtless that call at Davao. Its purpose was to help keep the
tide of patriotism ther running high.
Jananese Get Iron Ore: In the past the Davao proposition has probably gotten more
publicity than any other angle of the Japanese question in the Philippines. But there are
other problems almost as serious. The Japanese are making heavy inroads in the lumber bus-
iness, they practically control the fishing industry, they are a potent factor in the Manila
retail trade and they buy nearly all the iron ore that the Philippines produce.
- 16 -
William Fisher to David Hulburd
received April 8, 1941
In Korea and Japan proper. Japan can produce only about one third of her iron ore require-
ments and therefore has to look elsewhere for supplies. The Philippines rank very high as
one of the sources of supply making up for Japan's iron ore shortage. The iron mines in the
country supply Japan over 1,000,000 metric tons per year. This is about one fourth of
Japan's total requirement from foreign sources. The difficulty here is not 60 much in getting
enough ore out of the Philippines mines but in getting enough freighters to ship to Japan.
The Philippines iron ore is of a better grade than that found anywhere else in the Orient.
It is about 60% iron.
Japan has a fair supply of coking coal but an insufficient supply of iron ore. The
iron ore resources of the Philippines are extensive and practically inexhaustable. In answer
to the United States scrap iron embargo Japan has merely begun taking more iron ore from the
Philippines.
According to the American Chamber of Commerce Journal the iron mines in the Philippines
employ about 5,000 men. Several of the mines are well run and operated boasting "model"
towns for the workers.
Other mineral resources which interest the Japanese in the Philippines are chromium and
manganese.
Lumber and Fishing: In an address before E. Tokyo audience Viscount Tadashiro Inouye,
whom we have had occasion to mention before, remarked: "The resources of the Philippines
are not only agricultural, but there is forestry, fishing and mining, which also have & great
future but are still in primitive stages, with the exception of mining. Immense forest
resources are situated not far from the sea, a favorable factor which rarely occurs in other
parts of the world."
Japan has very little timber. There is almost none to be had in China. That which is
obtainable in French Indo-China is BO inaccessable that it will be generations before it can
be gotten out. The almost untouched timber resources of the Philippines are a temptation
- 17 -
William Fisher to David Hulburd
received Apr. 1941
hard to resist. As a matter fact, the Japanese have not lost much time in getting hold of
big timber holdings in the Philippines.
The words of the Viscount in Tokyo recall an interesting little drama which is taking
place today. At Dingalan Bay on the north coast of Tayabas it is possible to see numerous
Japanese ships dropping anchor. From all appearances the place might be one of the minor
ports in Japan itself. The ships in the bay are all Japanese and the town ashore has the at-
mosphere of Japan about it. Inland there are large resources in timber, some of the best
timber that the Philippines produce, The region boasts fourteen lumber mills controlled and
operated by Japanese. There is an example of more Japanese penetration in the Philippines:
and there are other examples.
The timber holdings of the Japanese in the islands are impossible to estimate. In every
case the Japanese register their holdings through a dummy Filipino owner. This sort of thing
is difficult to check in a government that is honeycombed with graft and nepotism.
However, it is in connection with the fishing fleets of the Philippines that the question
of dummy ownership reaches its most serious stage.
Let us illustrate this point with a little story, In Manila there is 8. very charming
woman who has some Spanish blood in her veins and extraordinary social ambitions. She is well
connected, that is to say, she knows most of the powerful politicians. entertains them lavish-
ly in her household. She arranges matches between promising young politicians and the
daughters of wealthy mestiza families. In other words, she has a salon, a sort of political
salon for in Manila politics is something which occupies nearly all the time of the so-called
better classes. This woman of course, needs a large income upon which to operate, but
until not long ago she was without great means. Here is the answer: she possesses through
inheritance or some other means, a number of sizable desp sea fishing boats. If she operated
these herself she could hardly make enough to exist on, but by the sub-leasing of them to the
Japanese she ocquires a small fortune annually. The ships are still registered in her name
- 18 -
William Fisher to David Hulburd
received April 8, 1941
and the Japanese get by the alien ownership law by renting them from her.
This woman is just one of many prominent figures in the Philippines obtaining small
fortunes from the Japanese through covering up for them on the rental of "fishing" vessels.
It is no wonder that when this matter comes up before the National Assembly it is usually
squashed after E. half hour or so of frantic speech-malting. There are some Filipinos who
appreciate the seriousness of the situation. They would like to do something about it, but
theh cannot.
Down in Palawan, the Japanese operate fishing boats that can do 32 knots an hour. I
have recently talked with an American who has spent some time in that part of the archipelago.
He has seen as many as 64 of these boats at one time. They are a type of boat that could be
readily armed if theh are not armed already. The Filipinos cannot ever get near enough
to them to find out. These boats give the Japanese a serviceable mosquito fleet in that
part of the islands if they ever wanted to make a landing there. And there is something
amusing about this somewhere. For several years General McArthur has been trying to get the
Filipinos to provide themselves with & mosquito fleet. Atthe present juncture of the world's
international crisis the Commonwealth Government has two mosquito boats ready for action.
The Japanese already have a bigger navy in Philippines water than the Filipinos have them-
selves.
I have heard it estimated by apparently reliable individuals that the Japanese today
control through dummy. registration 90% of the fishing fleet in Philippines waters. It is no
wonder that they have been able to map and survey every harbor in the archipelago.
But the Japanese also go fishing. They have fish canning plants at various points. In
this way they are in competition with they big new plants that the Commonwealth Government
has erected in Manila for the canning of fish. Or it might be better to say the the Common-
wealth Government is trying to compete with the Japanese. The fact remains that the Japanese
catch the fish, can them in the Philippines, send them up to Japan to have the labels stuck
on and then back down to the Philippines again to be sold at a price less than that of the
- 19 -
William Fisher to David Hulburd
received April 8, 1941
Commonwealth Government canning company.
Before leaving this fisheries problem I would like to relate it to the incident which
occured the other day up in the Batanes islands, which arenorth of Luzon and within a stone's
throw of Formosa. It was reported in the usually reliable Manila Daily Bulletin that about
60 Japanese clad in blue jackets raided the town of Itbayat and carried off some chemical being
used for a mining project there. It was some days before the report reached Manila as the
islands are 80 far away and without means of communication.
This report was no surprise to Americansin Manila who know the way the wind is blowing
in these northern islands. The Japanese are said to have virtual control of the local
governments there. They are abase of operations for fishing fleets manned by Japanese. In
some places the Japanese have come ashore and settled down. They have come ashore to marry
the natives and thus get a claim on their land.
Manila Retail Trade: I am not going to devote very much space to the fact that the
Japanese have a large interest in the retail trad sof the Philippine Islands, especially in
Manila. I view this as perfectly legitimate, as they Chinese also have a large interest in
this type of business. In other words, I do not believe in crying wolf at the sight ox the
Japanese shopkeeper. I have tried to show that the Japanese control of the Philippines
fishing fleet constitutes a real menace. I have tried to show how the colony In Davao can
be used to stir up trouble. I have objected to the establishment of small Japanese col-
onies in outlying islands as a real menace to the future safety of the Philippines.
The Japanese are active in retail trade in Manita and the other centers of the islands,
They are not as good businessmen as the Chinese; they are not as numerous or as widespread,
but the one field in which they are first rankers is cotton piece goods imports. The
figures for cotton piece goods imports are not available for the whole of 1940 as yet. In
the first seven months last year the Philippines took 67,186,000 squ are meters of cotton
M 20 -
William Fisher to David Hulburd
received Apr. 8, 1941
piece goods. Of this total the United States supplied 43,212,000; Japan 17,427,000; China
4,224,000. The bulk of the rest came from Honglong and Europe.
The Philippines still remain the largest foreign outlet for cotton piece goods man-
ufactured in the United States.
It is a sad but interesting fact that a great deal of the Japanese cloth is sold through
Chinese merchants in the Philippines. The Japanese produce a low price cloth that American
manufacturers cannot compete with, and so generally speaking they are not a serious handicap
to American trade in this fleld.
The Japanese bazaar is a familiar sight in Manila. In fact, the first store on the
Escolta, the most important business street in Manila, is a Japanese bazaar.
These bazaare are filled with cheap goods of every size and description from children's
pianos marked "Gland Fiano Made in Osaka" to the thousand and one novelties which the
factories in Yokohema, Osaka and Nagoya are still producing despite the stress and strain
of a war economy in Japan.
An adequate testimony to the extent of Japanese trade in the Philippines is found in
size and splendor of such institutions as the Yokohama Specie Bank in Manila. The Yokohama
Specie Bank stands next to the National City Bank of New York. It 1a equally large and
equally imposing.
There are only 9,000 Americans in the Philippines; there are 29,000 Japanese.
Japanese Undercover Work: This angle of Japanese activity in the Philippies has inter-
ested me more than any other. But it is something that is more difficult than enything
else to obtain accurate and reliable data on. However, the United States army has been help-
ful in giving me certain information on Jaranese publications and propaganda work and other
material has been available from Americans and Filipinos here whose interest in the subject
is deep and whose opinions andinformation are to be trusted.
- 21 -
William Fisher to David Hulburd
rec'd April 8, 1941
To begin with, I should like to point out that at the present time the Japanese camp-
aign in the Philippines is this. On the surface of things they are doing everything possible
not to alarm the Filipinos; undercover they are doing everything possible to spread damag-
ing propaganda, to obtain valuable military information and to weaken the morale of the
Filipinos.
On the surface of things they assume an air of absolute innocence, They want to do
everything possible to allay all suspici C n and these tactics are successful with some
Filipinos.
A short time ago a new Japanese Consul-General arrived in the Philippines. He immed-
iately called on the High-Commissioner, as is customary for foreign representatives of his
rank sent to serve in Manila. One of his first questions put to the High Commissioner was:
"What can I do to keep out of trouble - I do not wish to do anything that might displease the
American authorities here."
Every Japanese business man in Manila is expected to carry on propaganda work with all
Filipinos that they may come in contact with. The nature of this propaganda is laid down
for them. They are told what to say and when to say it. The general tone of their state-
ments must be that one day the Japanese will take over the Philippines but they will be nice
about it. At that time they will be rewarded for loyalty to Japan now. Any Filipino who
helps 'the Japanese now will be rewarded.
"We have learned our lesson in China", the Japanese say. "We are going to be kind to
the Filipinos."
The Pan-Asiatic idea is also worked overtime in the present propaganda compaign in
Manila. "We shall teach you to behave like Asiatics," say they Japanese laughingly to their
Filipino friends.
Buying the Politicians: The big Japanese firms in Manila of course need legal advice
from time to time on their legitimate transactions. If they happen to have transactions that
William Fisher, to David Hulburd
received April 8, 1941
are not ligitimate they need even better legal service, and they need inside influence in
the Philippines government.
Most of these firms maintain Filipino lawyers and these lawyers are concurrently members
of the National Assembly. Altogether. it is a very nice set-up. The retainers that the
Japanese firms offer are fat. They make it possible for the Filipino polititians to buy
cars thirty feet long, marry their daughters into the best families and load lives that are
high, wide and handsome. I do not know how many politicians in the National Assembly are re-
tained by the Japanese. The most conservative estimate that I have heard is six. I have
never met a Filipino in a position to know something about such things who could say that
there were fewer than that. A few say that there are twice or three times that number. At
any rate the men that the Japanese do maintain, and the most important among them are easily
identified, are in a position of importance. Is it possible that this has any connection with
the fact that for the last two months the assembly has been fiddling around without passing
any more than one bill? Some of the best informed Filipinos think it has. They point out
that in the last few years the Assembly has been constantly reducing the defense budget of the
Commonwealth Government. It does a lot of talking about the dummy fishing boat question. But
it never does anything about it.
"Some of our assemblymen have been eating too much sukiyaki lately," a Filipino news-
paperman remarked to me the other day.
Mysterious Mr. Queson: A good many Americans and some Filipinos think that Mr. Queson
16 pro-Japanese. But I think that the answer I got the other day from a man who knows
Quezon intimately and is familiar with his political character may size the thing up as well
as any single statement that could.
"Is Quezon pro-Japanese?" I asked.
"Quezon is in nobody's hands", he answered. "Quezon isn't even in his own hands!" I
asked him what he meant by that. "Well, he said, I mean by that one day Quezon talks like a
- 23 -
William Fisher to David Hulburd
received April 8, 1941
monarchist, the next like a Fascist demagogue and the third like a do-or-die democrat.
Quezon isn't in his own hands because he doesn't even know his own mind."
In the last elections Quezon heard that one of the candidates in the provinces was pro-
Japanese. In fact, the man had been running on a pro-Japanese ticket. In order to avert a
possible incident Quezon ordered the man to withdraw from the campaign at once.
But there are several things which make Quezon hedge on the Japanese question. He
seldom if ever mentions it in his political speeches simply because he is afraid to. He
knows that independence spells Japanese control and that he will be out if he offends the
Japanese. His frequent trips to Japan used to worry Americans in the Philippines. Re would
always make stop-overs on his way to the United States. It wasthought that he might be
hatching some plot with the government, at the very least a guarantee of Philippines integ-
rity after independence. Personally I do not hink that there is anything to indicate that
Quezon has come to terms with the Japanese through either a formal or informal understanding.
Say what you want about the man, he is at least an intense patriot, He would not intention-
ally sell. his country out, although he will probably end up by doing just this thing quite
unintentionally because he thinks that it is too late now to go back on the ideal he has been
fighting for the last forty years.
He has always tried to smooth over the Japanese question. Once he went down to Davao
on an inspection trip and came back to make the most appalling statement of his political
career. He said that there was no Japanese problem in Davao.
The Japanese know only too well Quezon's great weakness: personal pride and vanity.
They flatter and cajole him at every opportunity. They arranged an audience with the
emperor on one of his trips, they always wined and dined him when he passed through Japan.
They dubbed him the saviour of the Filipino people from the terrible American oppression
under which they had been suffering since the Spanish-American war.
Buttering Up Mr. Quezon: The most beautiful piece of flattery with which the Japanese
M 24 -
William Fisher to David Hulburd
received April 8, 1941
have ever attempted to endow Mr. Quezon is in the form of a book which was prepared by their
official propagandist in the Philippines, G. H. Encaswa. We shall deal with Mr. Incenve 2
little more fully later on. The book is called "From Nipa Hut to Malacanan." It is a
biography of the president and was first written in Japanese and later translated into an
English edition which has had very widespread circulation in the Philippines. It is an EX-
cellent piece of propaganda, Mr. Enosawa is a very adept propagandist.
"From Nipa Hut to Malacanan" gives the whole of Mr. Quezon's life from his boyhood days
to his-election as President of the Philippines. It is filled from cover to cover with
flattery, but what is even more interesting, it contains numerous sideswipes at America and
the part it has played in the Philippines, It leaves the impression that Mr. Queson single-
handed freed the Filipinos from the sly and avaricious ways of American rule. It gives
neither the United States nor any of its able representatives in the country any credit
whatsoever for the part it or they played in making possible the creation of a free and have
people in the Philipines today. Mr. Quezon gets all the credit,
The book is published by the Japan Publicity Agency and has an introduction by Eachiro
Arita, formerly Japanese Minister of Foreign Affairs.
In connection with his Queson biography Enosawa takes pains to trace the course of
early Japanese influence in.the Philippines. As early as 1889 Japan was formulating 3. south-
ward expansion policy in the Philippines. Sadakaze Suganuma was the pioneer to these 10t-
ivities. He was a native of Kyushu, the most southerly island of Japan, and he made an
intensive study of the commercial possibilities of the Philippines while the Spanish
still ruled here. Enosewa also makes considerable capital of the manner in which the in-
anese played a part in the Philippines insurrection of 1899. At that time a relief ship
was organized in Japan without the consent of the government. It was suonsored by the Prog-
ressivc Party. The ship failed to reach the Philippines, having gone to the bottom off the
- 25 -
William Fisher to David Hulburd
received Apr. 8, 1941
China coast. The leader and organizer of the volunteers sent to assist the Filipinos was &
certain Colonel Tei Hara, who died before the revolution came to S. close. On his deathbed
be made the request that his nearest relatives should come and report the victory of the
Pilipinos and the end of the revolution to his grave. Enosawa produces documentary proof to
show that a few Japanese officers resigned their posts to come to the aid of the Filipinos
and be makes great capital of this assertion. He gives the impression that the Japanese
Caze to fight side by side with the Filipinos engaged in the insurrection. This makes good
propaganda but hardly deserves the all but lavish attention which Enosawa accords it in his
book.
The Busy Mr. Enosawa: Mr. Enosawa is in the front line of Japanese propaganda in the
Philippines. He does his work out in the open and makes no bones about it. Among other
things, he is editor of a magazine called Philippines-Jacan. It is published in English and
is to be had in both countries. It is, of course, mainly directed at the Filipino reader.
He spends most of his time in Manila. He is suave and rarely if ever makes a false move.
All his activities are apparently within the confines of ligitimate propaganda work. He has
lots of money to spend and gets about with the wealthy Filipinos of Manila. He also has
many friends in the powerful Spanish community. He entertains frequently, usually at the
Cherry Blossom restaurant, a replica of some of the best Geisha houses in Tokyo. His guests
cross-legged on the tatami (mat floor) at the Cherry Blossom and partake of the best Japanese
food. Mr. Enosawa likes mixed groups, preferably with a goodly number of Americans along
just to show that everything is above board. The editors of the American and Filipino news-
papers in Manila usually get invitations to these affairs.
Somewhere in between this overt type of propaganda and the secret service network which
Japan maintains in the Philippines is a type of activity which has gone far to give the Jap-
anese some good casual connectionsin the islands. Nearly every Filipino newspaperman of any
- 26 -
William Fisher to David Hulburd
rec'd April 8, 1941.
position whatsoever in Manila has been cautiously approached by the Japanese and it is claimed
that a few have been bought over. On the whole, I have a great deal of respect for most of
the Filipino newspapermen I have known. They are idealistic and most of them are inclined
to combine patriotism with pro-Americanism. On the whole, they are poorly paid. It is not
surprising that the Japanese have been able to get at some of them.
The Japanese have used the goodwill tour idea to good advantage in the Philippines. The
goodwill tours are usually comprised of Filipino newspapermen or students. They are sent to
Tokyo for a few weeks and later given an opportunity to tour the country. They come back well
impressed with the beauty of Japan and the sincerity of the Japanese. The good impression thus
fostered can later be fortified with money spread about in places where it would be most useful.
Japanese Press in Manila: The Japanese either own or subsidize a number of publications
in Manila. I have this on the very best authority available and have also seen the publica-
tions herewith described. "Oriental Art and Culture" is a monthly magazine that helps to build
up the kind of goodwill the Japanese want. It stresses cultural similarities - of which
there are actually few, if any between Japan and the Philippines. "The Eastern Recorder"
more boldly assumes a political tack, For some time the weekly "Sunday Informer" was an out-
right political propaganda sheet. It got so bold that the American authorities had to issue
a warning to its editor.
The papers combining Japanese-Axis leanings are more in evidence and more powerful. This
brings up a point that I want to deal with more fully later on, that is the question of the
widespread co-operation in the Philippines that is taking place between the Japanese,
Germans, Italians and Spanish community here.
The "National Outlook" combines Japanese and German interests. It has an excellent
section in Spanish, well illustrated and nicely gotten up. The magazine "Youth" outwardly
praises the German system, while "The Torch" is another strong Fascist organ. "Ang Sulu",
a vernacular, is subsidized by the Japanese and finds its way into the provinces.
- 27 -
William Fisher to David Hulburd
received April 8, 1941.
In addition, the Japanese find it convenient to work through various Filipino-Japanese
organizations in Manila which pose as cultural or musical societies, It must also be pointed
out that the once powerful pro-Japanese GANAP party is not dead, although this is generally
believed to be the case in all but the most thoroughly informed quarters in Manila. There is
also a new group known as the Pan Asiatic Party. It has not had much time to stir up trouble
yet, but informed quarters here say that it bears watching.
The pro-Franco Falangista Group publishes a magazine called "Contact." The Falangistas
sponsor a blue shirt youth movement in Manila and I have seen pictures in their magazine
showing ceremonies in which these uniformed youths are participating. Another Spanish
rightest magazine here is "Yugo", which is a large and impressive monthly. It waves the swe.s-
tika and the Franco banner and supports Japan.
In this particular report I do not want to go into the question of Fifth Column activ-
ity in the Philippines as carried out by the Spanish rightest groups and with German and
Italian influence other than to stress the relationship which these bear to Japanese under-
cover activities.
"Fatty Arbuckle" and the Japanese: The Japanese find it convenient wherever possible to
work through foreigners. In the Philippines it is very difficult for a Japanese to approach
a Filipino or anyone else directly, so the way out of this difficulty is to obtain a go-
between. For some unknown reason the Spanish rightest of the pro-Franco dique are becoming
increasingly pro-Japanese. They have sent two delegations to Tokyo and though it is not
known what transpired in their discussion there, it is believed that some sort of arrangement
was made. In their childish trust of the Japanese, the Spaniards do not realize that they
would receive the same sort of treatment in the Philippines 26 the White Russians received
in Manchukuo. Japan would grab in a minute the great Spanish tobacco interests in the
Philippines.
- 28 -
William Fisher to David Hulburd
rec'd April 8, 1941.
A few of the Spanish rightest are optimistic enough to believe that if the Japanese take
over here that some sort of agreement will be reached whereby the Philippines will be returned
to Spain. Franco maintains paid spies and propagandists in the Philippines. One woman work-
ing on behalf of Franco here (it is not know whether she received pay for her activities)
attained to some notoriety in Manila some time ago by giving a big dinner in the American
Army and Navy Club. Franco's portrait and flags were draped all over the dining room.
With such fertile ground to work on in the Spanish community, the Japanese have one very
valuable avenue for information and undercover work in the Philippines.
I have recently been told an interesting account of the sequel to the Romero case by an
American who has resided in the Philippines for a great many years and has an inside track
on the Hispano-Japanese activities in this country.
It will be remembered that at the time of Romero's arrest (Cautain Rufo Romero of the
Philippines Scouts was charged and sentenced on an espionage count) Gonzalo Beaumont, Chanc-
ellor of the Spanish Consulate in Manila, was arrested because it was alleged that he had
given a check for Pesos 10,000 to Romero. This caused a great hustle and bustle at the
Spanish consulate to explain; the whole DEL tter was covered up by sentencing Beaumont to
prison on the score of embezzling the money from the consulate, Beaumont said that the money
had been turned over on a gambling bet. It is generally believed that Beaumont took the rap
for the consulate with the understanding that he would be pardoned. Beaumont, who was called
"Fatty Arbuckle" around Manila because of his great size, was sodn pardoned and now he is
in Spain.
Angel. Maldonado was the Spanish Consul-General in Manila at the time of the Romero
case and he was soon eased out of tonw, reportedly at the request of the office of the High
Commissioner, and he is now serving Franco in Shanghai. Shanghai, by the way, has become a
center of considerable importance where Italians, Germans and Spaniards from Manila work
in close co-operation with the Japanese.
I do not have enough evidence to vouch for this story on the Romero case, but the
- 29 -
William Fisher to David Hulburd
received Apr. 8, 1941
circumstances would seem to give it some weight. Nor do I say that all Spaniards in Manila
are potential allies of the Japanese although it is safe to say that any Spaniard who favora
Franco is a potential enemy of the United States here and very likely to side with the Jap-
anese to attain his ends.
At the present time I am trying to obtain a full story on Spanish Fifth column activ-
ities here; it is not a very easy task. Most people know nothing of this subject and those
who do are afraid to talk.
A rather remarkable indication of the degree of co-operation which is going on here
between the Japanese and Germans is the fact that in the first two months of this year copra
and coconut oil has been shipped to Germany on a scale never known before. In January and
February, 1941, the Philippines shipped Pesos 1,600,000 in copra and oil; the bulk of this
went to the Reich via Shanghai and Vladivostok. This is more than was shipped to the
Germans during the whole of 1940.
Japanese Everywhere, In every place of importance in the Philippinese there are Jap-
anese. They act as tradesmen or photographers. They know everything that is going on and
they report it to their higher ups. If the Philippines adequately supported the number of
Japanese photographers throughout the country, it would mean that every Filipino in the land
would have to have his picture taken at least once each week,
The answer is that these photographers receive a subsidy. Most of them are educated
and speak a better English than most hinterland Filipinos.
A friend of mine who is the head of a big American photograph agency in the Philippines
recently went to Mincanao on an inspection trip. Every town he stopped in boasted its Jap-
anese photographer and he was surprised to find out on how little business they were able to
eke out what appeared to be quite a good living. Some of those he questioned had had shops
in four or five towns in the southern Philippines during as many years.
It is an oddity that most Japanese photographers in the islands manage to get back to
Japan every few years despite the fact that the trip is an expensive one.
-- 30 -
William Fisher - to David Hulburd
received Apr.8, 1941
The other day a friend of mine, an American woman who is very much interested in the
Chinese co-operative movement, gave a benefit performance to raise some money to send to China.
The show which she gave was a presentation of some new motion pictures of the Burma Road. Just
after the forthcoming performance was announced she was approached by three Japanese, all of
whom wanted the best possible seats at the highest prices.
The Cavite navy yard near Manila held ananction of scrap iron last wesk. In this morn-
ing's paper it is revealed that one of those who attended the auction was a Filipino hired by a
Japanese to bid on the scrap iron. The Japanese admitted that he intended to ship the scrap
iron home.
Examples like this are so common that they crop up almost every day.
A couple of weeks ago the editor of a Japanese newspaper was questioned by intelligence
men when it was found that in his home he had a powerful receiving and transmitting radio set.
A large number of coded messages were found.
Propaganda in Japan: In winding up this report I want to call attention to the fact that
in Japan the vernacular and English language newspapers are just commencing a campaign that
will have a far reaching effect on the Japanese public. This officially inspired press
campaign 1s making an effort to show that not only Americans in the Philippines but the Fili-
pinos themselves are becoming anti-Jananese. There is, of course, more than a grain of truth
in this as the activities in the Far East of the Japanese are beginning to impress the
Filipinos more and more. The Filivinos are impressed more and more as the distance between
them and Japanese aggression becomes less and less.
But the Japanese newspaper campaign is dealing in lies calculated to raise the temper of
the Japanese people against the Filipinos 50 that any sort of action in the future may be
justified. I have before me some recent clippings from Japanese papers. One is a story that
alleges that the Filipinos are going to the extent of abuse and violence against the Japanese.
The story states that robbery of Japanese in the Philippines and violence against Japanese
- 31 -
William Fisher to David Hulburd
received April 8, 1941.
farmers are daily occurrences.
Other stories emphasize the alleged Japanophobia that is rising in the Philippines. Amer--
icans are accused of fostering this Japanophobia for their own interests.
The creation of an "excuse" for aggression is one of the important phases of the Japanese
program of conquest. It is just another sign that the program is being carried out according
to schedule.
In the meantime, the Filipinos sleep about the same as the small nations of Europe
slept last year, and the politicos pursue their petty, selfish ends. But there is no sleep
among the Japanese undercover men and propagandists, or among the Spanish and German Fifth
Columnists that are gnawing at the foundations of democracy in the Philippines.
PSF Jach Carter Drawer Foldi 5-41
THE WHITE HOUSE
WASHINGTON
PRIVATE
May 19, 1941
MEMORANDUM FOR
NELSON ROCKEFELLER:
Please show this to nobody.
You might speak to me about this at
your convenience.
F.D.R.
Memorandum from John Franklin Carter, 1210
National Press Building, Washington, D. C.,
5/1/41, in re South American Communications
Holding Company. Attached is a carbon of
memorandum, dated 4/8/41, "Hemisphere Communica-
tion South of the U.S.A."
Carter File
flene yrus PSF
5-41
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
May 16, 1941.
MEMORANDUM ON REPORT FROM STOCKHOLM TO A CHICAGO INVESTMENT TRUST.
The author of this report is a member of the Swedish Parlia-
ment who has the record of being 60% right (his own estimate) on all
developments since Munich.
He says that the Germans have mobilized almost all their
twoops (April 26, 1941) and have massed millions of them all along
the Soviet frontier. Maps of Russia are being printed in huge quan-
tities. It is believed that this activity is designed to frighten
Russia, but it is considered a Sx5x toss-up whether there will be a
war. Invasion dhout June 1 is considered probable by many observers,
who point out that this would minimize damage to Russian crops.
The Germans are reported confident that they can beat Russia in one
or two months.
It is argued that Germany will take on Russia before Turkey,
in order to get control of enough raw materials for a five or ten
years' war and to prevent a later Russian attack. It is believed
a fifty-fifty chance that the Turks will either let the Germans
march through on the way to Suez or that the Germans will fight them
for a passage to Syria.
J.F.C.
JOHN FRANKLIN CARTER
Day Franklin)
PSF carter
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
May 21, 1941.
MEMORANDUM ON CONVERSATION WITH MR. RODE, INTERNATIONAL HARVESTER
MANAGER IN OCCUPIED FRANCE AND belg ium. (May 19, 1941)
Mr. Rode had just returned to this country, after managing the,
International Harvester plants at Lille and Brussels under the German
occupation.
He reported that German efforts to coordinate French heavy
industry in the Nord (Pas de Calais) had been dismal failures, due
to incompetence of German officials and demoralization of French
operators and managers. The Germans had drawn a "frontier" along the
Somme and then to the Belgian border and would not permit goods to
enter or leave this district without a special permit. To deal with
French heavy industry in this region they had organized the OCMINord
(Mineral Organizing Committee of the North), a submordinate committee
whose name was similarly synthetic, and a producing committee, the
Mechanord. The Vichy Government had a Coordinating Commissioner at
Paris, but the whole thing was terribly botched, between fear of
Vichy, desire of certain French industrialists to ingratiate themselves
with Cermany, -0 inexperienced German econcaic personnel. Rode said
that finally his plant, which declined to take any responsible part in
this organization, found that he could persuade the German military
authorities to make sense, He said that none of his factories were
manufacturing munitions, as the Germans considered agricultural ma-
chinery as equally important.
Rode recommended tightening the blockade and bombing German
Rhineland cities to smitereens as quickest way to drive a wedge be-
tween the Nazis and the mass of discontented Germans and conquered
peoples.
J.F. J.J.C.
full
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
PSFartu
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
xprix May 21, 1941.
MEMORANDUM ON CONVERSATION WITH MR. G.W.WOLF, PRESIDENT OF U.S.
STEEL PRODUCTS CORP.
Mr. Wolf had just returned from a business-trip in South America,
especially Brazil and the Argentine.
He reported that there was & racket in Brazilian xixxx visas for
non-residents of the Western Hemisphere, whose entry into Brazil is
prohibited by law. He said that if a European (chiefly Jews) wished
to enter Brazil, all they had to do was to purchase 20,000 of Brazilian
currency from the Bank of Brazil. This 20,000 was then frozen and the
alien was admitted to high-ppiced asylum.
He also reported that the French colony of Buenos Aires was
exceedingly bitter towards the British.
Mr. Wolf told me that his Lisbon representatige (Mr. Kean)
reported that last March Hitler had sent Hess to persuade Franco to
have Spain enter the war on the Axis side. Franco told Sixi Hess to
go and take & look at Spain, he would be given every facility and then
tell him (Franco) whether any patriotic Spaniard would wish his country
in the war. Hess went and saw, in addition to starvation and complete
disorganization of transport and economic production, the serious
typhus epidemic in Spain. He returned to Madrid shaken and gave up
the effort to bring Franco into the war. From this point on, said
Mr. Wolf, it is permitted to speculate. Am arranging xpsur separate
interview with Rean.
JH.
filled
Carter Flder
PSF
Drawer 5-41
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. c.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
May 27, 1941.
MEMORANDUM ON INTERVIEWS WITH BUSINESS MEN RECENTLY RETURNEE FROM
EUROPE.
There are enclosed three interviews by Curtis Munson, of
this project, with business men recently returned from Axis Europe.
I. Was with Mr. Rode, of the International Harvester, and
includes a diagram of the economic organization set up by the Germans
in Occupied France and Belgium.
II. Was with Mr. Kean, Lisbon representative of the U.S.Steel
Products (export) Corporation. Kean knows a good deal more than
he has yet told us and will be interviewed again. He is slated to
go to Rio de Janeiro for his company.
III. Was with Mr. Lowndes of the General Mortors Export Corporation,
recently stationed in Sweden. There are also some additional notes
(IV) on conditions in German-occupied Norway.
Mr. Munson reports that many American business men contacted
are anxious to help and thoroughly patriotic but are becoming restive
under the multiplicity of governmental contacts, labor problems,
official questionnaires and reports.
gec.
I
Company B
Man 3
Location: All over Europe: especially Occupied France and Belgium.
Arrived U. S. -- May 12, 1941
Type: High class executive type. Best B. has to offer for these
interviews. Would judge shrewd and intellectual. Dry, able and pure.
Believes: The strongest thing in the Nazi Economic situation is
that all Army, business politics and objectives are directed by uni-
fied purpose from Berlin.
The strongest thing in the Nazi Political situation is seeming
successes. Though people are unhapny and dissatisfied in occupied
countries and in Germany itself the apparent success is the thread
that holds the whole together. The two strands of this thread are
Hope and Fear. The Hope is natural. The fear is a restapo product.
One method is picking-up inconspicious individuals for very minor
offenses, letting the culprit know they have followed his every move
for weeks and then releasing him to scare the others. It creates
the impression that they know everything about every one no matter
how insignificant. (Eleven D. for the Scandinavian countries thinks
the least, even minor suspicion causes immediate and complete sup-
ervision by Gestapo).
The weakest thing in the Nazi Economic situation 1N dominated
France and Belgium and other, occupied, contiguous areas is lack of
German personel to properly organize industry. Executives and men
2
of executive experience are lacking due to wide dispersion. The work
is done by young men fresh out of executive schools woefully lacking
in experience. Millions of German men are really idle in the Army
and in Political and Economic supervision, and in policing over a
wide area. This results in a terrific strain on the actual workers.
(including supervisors and executives of real experience)
The weakest thing in the Political situation is the promises
which have been made by the Nazis to their people only part of which
have been carried out (i.e. Britain would capitulate on the fall of
France. .A short war). Must keep going and must add new promises
in order to do SO. To keep idle army and economic personel2 from
rusting they have to keep moving them around which consumes fuel
and energy. They used to move a lot by truck. Before he left this
had almost ceased. Believes this indicates shortage of oil.
Relation of Army and Party-does not know.
Relation of Industrialists and Party-does not know.
Suggestions for Attacking: -Hope in Germany progressively dwindling
in spite of victories because so many promises not matured. The Ger-
PRONE
man is proved to an inferiority complex. He begins to doubt. Suggests
driving home the doubt to the people by R.A.F. announcing systematic
wiping out of German cities in a certain order and then starting in
with a complete consecutive progressive wipe out of city by city.
This to bring home to German people seriousness to them and doubt of
the course they are pursuing. I'would give German business men and
3
others not in accord with Party a chance to assert themselves.
Bring it home to the Germans by some German defeat that they
are really inferior as they fear themselves to be and the whole
would collapse.
Bribery: -Had heard rumors Nazi officials were bribable, but never
ran on to even a suggestion of it. If there had been a postibility
of bribery he would surely have received knowledge of it from some
of his men. (with a like stress on obtaining freight cars and raw
materials in U. S. he undoubtedly would have heard of an existing
possibility for bribery from some of his many employees) Human
nature is the same U. S. or pas de Calais. The assumption is there
was little there.
General impression:- - Whole German picture held upright by
centrifugal force. First impetuous promises, followed by successes
which surprised German people. The top is whipped but it looses
speed, and any lashes subsequent to the fall of France and Dunkerke
are losing force. When the top ceases to spin spring it falls.
Rough Suggestion of set up
BeRLiN
Economic Party, military
centralized
ORGANIZATION to function in
PuRely GERMAN iN Organization
occupied teRRi GOR YAVAILING
Occupi ed teRRitoRy
Industry
itself AS FAR AS possible of
NATE ve e Cements.
out postof ALL Three
MACh.
Index HAW
for opportunity Producing
Economic, PARTY, MiLitARY
Tools
MATERIALS
RAW MAteRiALS
with Mililary PREDOMINATING
etc
Bizussels
PAS de CALAiS
(for iNSUANCE)
(for instance)
FLeMisk
PARIS
HeAd of
occubied zone
ALSO divided in to
departmental, Local
ORGANI 2A tions
4
x apare
Beautifully worked out plans by young men, beautiful theory but
no men to carry it out. No go ahead signal could be seen. Though
in theory the local French is supposed to cooperate with the local
GermanSthere was actually no connection because the local German
could or would assume no responsibility. The only way anthing could
be accomplished was through Berlin, an impossible tedious route. French
industry was in a mess, all production including steel and mining
way down. Everybody had to contact Berlin--no cross contact. On top
of this French started in to organize themselves and did not hook in
with the Germans.
Terrific amount of questionaires to fill out.
was
PS. This man a line long winded and I find he has containated me.
alance p lease
F\
Company C
Man 9
Portugal 8 years left April 28, 1941.
Type: Liverpool Irishman with touch of ancient grudge. Ob-
servant, shrewd and once under skin very helpful. Knows a lot.
Knows most officials personally.
Portugal: Salayar complete dictator. Absolutely honest. Every
other Portuguese official bribable and corrupt. This is Portugals
chief weakness. Portugal' S chief strength is Salavar's complete
hold, ability, honesty and what he has done for the Portuguese
people and Portugal.
Advises Spain to keep out of war. He is working very closely
with Spaniards and advises them not to get in war. Franco turns
to him for considerable advice.
Portugal is strongly pro British. If the Germans march into
Spain, Portuguese government intends to fall back to Azores.
Azores: If driven to Azores Portuguese would welcome American
and British help. But they would strongly resent our taking cover
Azores before hand. No suggestion of U. S. taking Azores ever arose
in Portugal. They never even though of it before and realize it is
only some American newspaper story.
Attitude toward Americans: No. 9 feels we should cultivate
Portuguese. Our attitude in past has been one of suspicion toward
them. They would welcome friendly closer relations with U.S. and
Pro.
deserve it. It would strengthen British sentiment.
Salayar has full support of the people and the aristocrats.
Aristocrats are poor.
Certain elements of business men are opposed to him. This
opposition will be found here and there in the following industries:
Sardine Packers
Table Wine
Oil (Mendohi)
Shipbuilding
Textiles
He refused to give specific names of companies opposed to Salazar
but evidently knows them. Believe could get of insted )
Spain: The people do not want war. They want to be left alone.
There is considerable Typhus. He believes Spain is a very difficult
country to invade if people are against the invasion. Does not be-
lieve Hitler will invade till people are willing and people are not
willing now. Good food obtainable if you pay for it in good res-
taurants, but none elsewhere.
Franco's chief weakness is nepotism. He is not nearly as able
as Salayar--in fact is a somewhat stupid little man in many respects.
Company D
Man 11
Sweden 1935 left March 19, 1941.
Type: Ruddy faced, Danish born American. Mother in Denmark.
eunning
Wily (some traces of peasant arming. Inclined to whisper and confide)
honest and able. Gives impression knows more than he tells-probably
a habit acquired by coming up from ranks, but may be due to mother
in Denmark and jitters in Sweden.
Says: He reported almost daily to Sterling in Stockholm.. Says
Sterling should know a lot. National Socialists in control in Sweden.
Has new line up in trunk in Pittsburgh. Will send it on but will not
be in Pittsburgh for 3 or 4 weeks.
Relations: Army and Party in Germany definitely not good. Army
did not want ny part of Gestapo. Rorich refused to have Gestapo in
Army. No. 11 says he has it on highest authority, -close man of
Mannerheim's in Germany that Heimrich Himmler organized beer hall
bombing of Hitler as Army then had charge of Hitler's protection,
to prove Gestapo shoul be in Army and protect him.
Relation Industrialists and Party-does not know.
Attitude toward America and American Business men: Common man
in Sweden thinks U.S. should have gone in with England in start.
Intimates intelligent business men know better.
Chance of Revolution in Germany:-Many Swedes returning from
Germany all quite definite no chance of revolution in Germany due
solely to Gestapo. Younger generation up to 35 years of age in
Germany completely sold on party. Germans very well organized and
efficient.
Strongest thing favoring Germans in Sweden: -- Fact that Germans
could grab them over night.
Weakest thing in German position in Sweden; -- People have seen
what happened in Norway and are inclining toward the British. Pinned
down on this statement says Swedes are about 50-50 whereas last war
they were preponderantly pro German. Lots of Swedes talk pro-German
through fear. Swedes do not want to loose their freedom.
Norway: Strongest thing on German side-Gestapo
Weakest against Germans: Norweigan sabotage.
Denmark: -- Strongest thing on German side: Gestapo and military
occupation.
Weakest thing against Germans: Hatred of people for
Nazis.
General Impression: he gives is that there is a very different
psychology in Sweden, Norway and Denmark. Sweden can be raped and
is Jittery; Denmark has been raped and though acquiescent through
weakness doesn not like it; Norway sees red and is fighting tooth
and nail. The psychology differs in just this way.
In
Company D.
Man 12.
HEARSAY; Norwegian:large contact with Norwegians in England
says complete radio and telegraphic communications between
Norway and Eggland.
all
Norwegians see red and practically are engaged in some kind
of sabotage against the Germans.
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
Partur
WASHINGTON, D.C.
"We, the People"
"The Week in Washington"
full
Metropolitan 4112
Metropolitan 4113
June 10, 1941.
MEMORANDUM ON FOOD MISSION TO MARTINIQUE.
The attached memorandum from Secretary Ickes is returned.
The man picked to go to Martinique is Curtis Munson, of
Chicago. Munson is an old friend of Wayne Taylor, has visited Mar-
tinique in the past, and fought in the French Army (aviation) during
the last war. He is a competent, level-headed business man, untainted
by politics and without a record which could embarrass him.
Paul Appleby is entirely willing to play ball in sending him
as Special Representative of the Department of Agriculture. Adolph
Berle is working out the practical details of financing the travel
end of his mission. Munson is ready to leave the moment arrangements
are completed on this end.
JJC
J.F.C.
THE WHITE HOUSE
WASHINGTON
June 7, 1941.
MEMORANDUM FOR
JOHN FRANKLIN CARTER JAC
FOR YOUR INFORMATION
AND RETURN.
F. D. R.
OF
CINTERIOR
THE SECRETARY OF THE INTERIOR
WASHINGTON
June 5, 1941.
My dear Mr. President:
I enclose a memorandum that has just come from Alfred
Bergman.
Sincerely yours,
Harold 7.9chrs
Secretary of the Interior.
The President,
The White House.
Enc.
INTERIOR DEPT
Received
1941
OFFICE
THE SECRETARY
June 2, 1941
MEMORANDUM
I have just received the following confidential informa-
tion on Martinique. Unfortunately, since I wrote some months
ago on this question, our position in Martinique has gotten
much worse. All the white people who were for us: the Mayors
of the towns, etc. have been put in prison, and the food we
have sent them there is now stored up to be used against us.
They have about a two-year's supply of food now. In other words,
it's going to be a difficult thing to take. If we wait any
longer, Vichy France will be deeply entrenched there through
the efforts of Captain Benes, who was formerly the Naval At-
tache of the Vichy Government in Washington, and who, apparently,
is well-informed on all our ideas.
If we don't take It soon, It will be an abcess for that
part of the Western Memisphere, and & jump-off place for para-
chute troops to the surrounding islands.
Every hour counts. Please act.
*******
Please pass on
to The Prembt Thanks
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. c.
37
3
I
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
MISCELLANEOUS NOTES BEARING ON AXIS ECONOMICS AND POLITICS,
BASED ON INTERVIEWS WITH SHIP CAPTAINS, BUSINESS MEN ETC.
June 10, 1941.
Silesian-American bonds (Anaconda Copper) which stood at 50, June 4,
jumped to 80. Evidently somebody thinks these bonds will be paid off
this coming August, at 100.
Young Norwegian reports that Nazis are getting control of big stores,
etc. in Norway by purchasing from German wholesalers at prices which
produce insolvency, whereupon the Germans take over.
In Norway the Nazis have revived old Norse law permitting you to kill
a man who has insulted you or defamed your character. It works only
one way: for the benefit of the Quislings.
Sea-captain in from Sumatra reports that entire white population is
in armed forces; average white man in Dutch East Indies despairs of
U.S. Naval aid arriving in time to save islands from Japanese, in the
event of Japanese attack.
JK
Anaconda coffer
Silesian-American Bonds (7 %)
June 4th - Last week 5 bonds were traded in. The high 50, low 45 - last 50.
Monday, June 2nd Five bonds sold at 55.
June 3rd, One bond sold at 60 and two bonds at 67.
June 4th, One bond at 70; Two bonds at 75; one Bond at 79 1/2 and 3 at 80.
There is just as much mystery attached to these bonds on the street
as there was at the time of my last report.
Evidently somebody thinks the bonds will be paid off this coming
August at 100.
Company 10
Man 12
ADDITIONAL INTERVIEW
Clean cut efficient, young Norwegian - England only but his
contacts many with Norwegians in England fresh out of Norway.
Says: Sweden friently to Germany because afraid of Russia.
Big stores (businesses) in Norway (i.e. Oslo) taken over
slowly by Nazis by following method. These stores purchase from the
wholesaler (Germany) and prices are so arranged that the stores become
insolvent and are taken over by the wholesalers (Germany).
In Norway, Germans have brought to life old Norse law (Magnus
Lagabuter) which allows you to kill a man who has insulted you or defamed
your character. This works one way only. It helps the Opislings in case
they are accused of being pro Nazi.
June 6, 1941
Walker
Sumatra talk with Capt. N Ship MC ISSC
Sailed direct to New York from Belawan-Deli with general cargo and no passengers.
Summary of talk:
All Germans and German sympathizers in the Belawan area have been
interned by the Dutch authorities who found that Fifth Column activities
had been organized but succeeded in arresting all participants.
All of the white population in armed forces. Dutch have natives
under excellent control and Japanese merchants -- much in minority -- are
only possible trouble-makers. Chinese and Hindo merchants far outnumber
the Japanese.
There has been no apparent reflection in the Belawanan area of receipt of war
materials resulting from activities of the Dutch East Indies Purchasing Commission
in the United States.
The average man in the area is looking dispairingly to the United States
for aid in the event of Japanese agression because he feels that any help the
U.S. could send would be too late if the Nipponese arrive in force.
No shortages of goods were apparent at time of sailing.
JOHN FRANKLIN CARTER
(Jay Franklin)
Parter
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
June 10, 1941.
MEMORANDUM ON SYRIA BY ANNE H. FULLER.
The attached memorandum, on Syria is compact and reliable.
It contains only the basic facts, for background information.
Miss Fuller has lived in Syria for many years, at the American
College in Beirut, and has traveled extensively through the country
as an archaeologist. Henry Field collaborated with her in preparing
this material.
JHC
PRIVATE AND CONFIDENTIAL
MEMORANDUM ON SYRIA
by
Anne H. Fuller
June 9, 1941
2
CONTENTS
Pages
Introduction
3
1.
Geography
4-5
Area
4
Divisions
4
Climate
4-5
2. Population
6-8
1932 Census
6
Density
6-7
Urban
7
Rural
7
Cities with more than 20,000
7
Illiteracy
8
General culture
8
3. General Economy
9-12
Agriculture
9-10
Cereals
9
Fruits
9
Raw materials
10
Vegetables
10
Crop Consumption
10
Industries
11
Imports
11
Exports
11-12
2a
Pages
4.
Religion
13-18
Moslem Sects
13
Christian Sects
13
Distribution of Religious Sects
14
Significance of Religious Affiliations
14-15
Religion and Internal Politics
15
Religion and External Politics
15-16
Religious Divisons and the Present Crisis
16-18
Bibliography
19
3
June 9, 1941
MEMORANDUM ON SYRIA
This information complements the previous memorandum on
"Syria and American Prestige" submitted by Miss Anne Fuller on
June 3.
The British should be able to conquer Syria relatively rapidly,
unless Hitler provides adequate support.
Among pro-Allied factions in Syria are the de Gaulists and
such pro-British groups as the Druzes (80,000). If the Assyrians,
imprisoned on the Khabur River, were released they would almost
certainly fight for the British.
4
GEOGRAPHY
Area of Syria.-206,999 square kilometers.
Geographic Divisions. Syria falls into two main geographic
divisions: 1) the desert; 2) the sown.
1. The desert plateau of the interior is by far the more
extensive region.
2. The more westerly and fertile strip, however, bordering
on the Mediterranean is the more important area. It is divided
into four belts which run parallel to the coastline.
(a) The narrow littoral plain, well-watered and fruit-
ful.
(b) The Lebanon range whose mountains rise sharply from
the littoral zone, and attain altitudes of more than 10,000 feet.
(c) The Buqa'a, an elevated tableland of 3,000 feet,
which divides the Lebanon range from the anti-Lebanon.
(d) The anti-Lebanon range, dominated by Mr. Hermon,
rising 9,000 feet. The eastern flanks of this range Join with
the desert area.
Climate. -- The coastal plain is subject to the sea breeze,
and in general has a Mediterranean climate. The rainfall is fairly
heavy, averaging about thirty-five inches hear Beirut.
The mountainous regions have a colder climate and a heavier
rainfall. Some of the higher mountain ranges are snowcapped during
a large part of the year.
5
The interior plain, or the Buga'a is characterized by cold,
severe winter, and exceptionally hot summers.
The desert rainfall averages about two inches a year.
Rainfall in Syria, however, is not well-distributed through-
out the year; but occurs almost entirely during the latter part
of the autumm and all of the winter months.
6
POPULATION
1932
Population of Syria
State of Syria
1,562,000
Sanyak of Alexandretta
186,000
Lebanese Republic
854,693
Government of Latakia
320,849
Government of Jabal al-Druze
67,883
Total
2,987,425
Density of Population
1932
State
Area
% of total
Population
% of
in
area
km.
total pop. Density
State of Syria
177,800
85.90
1,562,000
52.28
8.79
Sanyak of Alexan-
4,000
1.90
dretta
186,000
6.23
46.50
Lebanese Republic
9,199
4.45
854,693
28.60
92.91
Government of
Latakia
6,500
3.15
320,849
10.74
49.76
Government of Jabal
al-Druze
9,500
4.6
63,883
2.14
6.72
Total
206,999
2,987,425
Aver.
14.44
7
Density of Population. Although the average density for all
Syrian states is some fourteen inhabitants per square kilometer, it
is somewhat misleading to speak of mean density of population as
certain regions are thickly settled, while large tracts of land
are totally uninhabited. The inhabitable portions of the various
states, moreover, form only about one-third of their total area.
Urban and Rural Population. The population of Syria can be
considered a largely rural. The presence, however, of a certain
number of large cities creates an urban population, which reaches
a total of 34.42%. The rural population falls into three divi-
sions: 1. Peasants; 2. Nomads; and 3. Semi-nomadic groups. The
nomads number some 150,000. The semi-nomadic groups are estimated
at 100,000.
Population of Cities Above 20,000
State of Syria
Alep
232,000
Damas
216,000
Homs
65,000
Hama
50,000
Deir ez Zor
30,000
Sanjak of Alexandretta
Antioch
30,000
Lebanese Republic
Beyrouth (Beirut)
179,360
Tripoli
51,220
Government of Latakia
Latakia
23,876
8
General Culture of Country.
Illiterates
Per cent
Lebanese Republic
58.85
State of Syria
63.00
Literacy varies considerably in different districts. In and
about the cities illiteracy is at its lowest; while in purely rural
districts, illiteracy reaches its highest point, as in Hama and
Hawran. As might be expected, the percentage of illiteracy is
higher among women than men.
General culture standards also vary enormously. The city of
Beyrouth (Beirut) is to be compared to any large Mediterranean
port; and is more Occidental than Oriental. The same holds true
of its upper classes.
The Christians, in general, are better educated than the
Moslems; they are also less bound by tradition.
The masses, however, both Christian and Moselems pursue a
life much in accordance with that of their forefathers; are dom-
inated by the traditions of the past, are parochial in their
viewpoint, and are deeply attached to their lands and their
families, and to their respective religious communities.
9
GENERAL ECONOMY
Agriculture.--Syria is primarily an agricultural country.
Sixty-two per cent of its population is directly engaged in agri-
culture. The transformation of agricultural products into manu-
factured or semi-manufactured goods constitutes the major part
of the country's industry.
Major crops. (in order of importance),
1. Cereals - about 75% of the total area under
cultivation is planted with cereals.
(a) Wheat - most important crop. Half of
the cultivated land is given
over annually to its produc-
tion.
(b) Barley - next important cereal. More
than one-fourth of cultivable
land is planted with barley.
(c) Indian millet or sorghum.
(d) Maize.
(e) Oats.
2. Fruits
(a) Olives
(b) Vineyards
(c) Citrus trees
(d) Apricots
10
3. Industrial Raw Materials.
(a) cotton
(b) silk - worms fed on mulberry leaves
(c) tobacco
(d) sesame
4. Vegetables and Leguminous Plants.
Consumption of Crops.-Local production of wheat has nearly
always supplied local demands.
Most of raw silk exported (chiefly to France).
Tobacco exported to England, and consumed locally.
Olives are consumed locally as food. Greater portion, about
75% is pressed into oil. Of the oil about one fourth is exported;
one fourth is consumed at home, and the remainder is manufactured
into soap for local and foreign markets.
Grapes are consumed locally. Palestine is the most important
export market.
Oranges are for the most part consumed locally; the remain-
der are exported, chiefly to Egypt.
Apricots form a major item in Syria's exports.
11
INDUSTRY
Since Mandate control there has been a decrease in the
number of independent craftsmen and an increase in the number
of artisans employed in workshops and factories.
But industry on the whole resembles that of Eurppe at the
time of the Industrial Revolution.
Major industries
1. Weaving
2. Silk-spinning
3. Soap manufacture
4. Tanneries and Shoe-Making
5. Knitting and Lace-Making
6. Cement and Construction Materials
7. Food industries
(a) milling
(b) production of macaroni
(c) preservation of jams, pastes, candies
Imports and Exports. For thirty years or more, Syria has
imported two to three times as much as she has exported. The
disproportion between imports for domestic consumption and exports
of domestic consumption is even greater. Here the proportion is
about fourfold against Syria.
Most of the trade deficit is met from other sources of
national income such as emigrants remittances, services in con-
nection with transit and re-export trade, tourist expenditures,
philanthropic funds, expenditures of the mandatory Government in
12
Syria and revenues accruing to Syrians from their property abroad.
The popular idea is that Syria produces a surplus of raw
materials which it exports to manufacturing countries. On the
contrary not enough raw materials are produced to supply local
needs. The lack must therefore be supplied from abroad.
13
RELIGION
Religious Sects
Moslems
Sunnites
1,075,816
Alaouites
227,930
Shiites
110,002
Druzes
86,125
Ismailites
14,882
Total
1,514,755
Christians
Maronites
186,676
Greek Orthodox
151,326
Greek Catholics
68,762
-
Armenian Gregorians and
Catholics
69,049
Jacobites
8,896
Protestants
8,887
Syrians
6,997
Latins
3,455
Chaldeans
1,267
Nestorians
104
Total
505,419
Jews
16,526
14
Distribution of Religious Sects. The Moslems form two-thirds
of the total population of Syria. They inhabit for the most part
the interior i.e. the region that lies east of the Lebanon range.
Damascus is their cultural center.
The Christians in contrast are largely concentrated within
the Lebanese Republic, particularly in the mountainous regions
between Beirut and Tripoli.
The lesser sects of the Moslems also find a certain spatial
distribution the Alaouites and Ismailites are largely confined
to the mountainous regions east of Latakia. The Druze, aside
from their heavy concentration within their own territory of
Jabal al-Druze, southeast of Damascus, are distributed about
the western flanks of Mt. Hermon, and in certain of the valleys
that penetrate the Lebanon range between Beirut and Sidon. The
Shiites are found in greatest number in the hill country to the
east of Sidon and Tyre. A certain number are also to be found
in the region of Baalbek in the Buqa'a.
The Significance of a Religious Affiliation. Religious
issues break the country into a number of factions. The various
religious groups are distinguished not only by their differences
in belief, but social custom, general standards of cultures, and
political outlook. Christians and Moslems, each form a com-
munity apart, - they do not intermarry. This holds true as well
for certain of the sects within either of the greater religious
bodies. They too, form endogamous communities. Within each
religious group, furthermore, the religious officials are the
15
recognized leaders of their respective communities. Religious
belief in Syria thus forms a variety of religio-socio-politiao -
bodies; and is the basic cause for the continued internal dis-
harmony and lack of unity within the country.
Religion and Internal Politics. Because of the opposing re-
ligious camps, each with its own specific background and view-
point, there has been no singleness of purpose in Syrian politi-
cal aims. The Christians, as a minority, fear domination of the
country by the Moslems; and thus rigorously refuse to co-operate
with Moslem aims. The Christians, living for the most part on
the seaboard, have also come to identify themselves with the
Western and Christian world. They want no part in an essentially
Oriental and Moslem state.
Various sects, moreover, within either of the major religious
groups, have their specific quarrels. The Druze, for instance,
object to Sunni Moslems possessing the greater number of official
jobs within the Government of Jabal al-Druze. Or to give another
example, the Maronites among the Christians of the Lebanese Re-
public, feel that they should possess greater political power
for the first and earlier boundaries of the Lebanon State set
up under the Ottoman Empire were created specifically for the
benefit of this minority.
Religion and External Politics. Opposing views held by the
various religious orders likewise exist in relation to the larger
16
world; i.e. to the whole question of Mandate control and sym-
pathies toward foreign powers.
The Moslems with Nationalistic aims picture the several states
of Syria combined as a single unit, which in turn will be set up as
an independent nation or as part of an Arab Federation of states.
But the Christians of Lebanon have little desire to exist as
a small minority within a Moslem bloc. Instead the Nationalists
among the Christians want a Lebanese Republic detached from greater
Syria, and at the same time receiving some guarantee for its se-
curity by a European power. The Maronite sect in particular has
felt close bonds with France; while both its prelates and those
of the Greek-Catholic Church look to Rome as their religious
center.
Religious Divisions and the Present Crisis. Certainly no
unity of action nor of opinion can be expected of Syria in the
present crisis. The peoples are too divided among themselves.
The majority of Moslems have objected to French mandate
control. The repercussions of the Arab struggle in Palestine
have created among many of them strong anti-British sentiments.
Both Germany and Italy, meanwhile, have for the last four or
five years assiduously cultivate' Moslem sympathies in Syria.
In 1938, for example, one of the lesser Nationalist groups
was almost entirely financed by the Fascist Government.
17
Previous to the outbreak of the "ar, scholarships and free tours
for students were organized to both Italy and Germany by the Axis
powers. It must also be remembered that the Grand Mufti spent
sometime in Syria after fleeing from Palestine in 1938, and
previous to his recent arrival in Iraq. It is not to be doubted
that while in Syria he built up strong pro-Axis sympathies among
his numerous followers.
It must thus be recognized that pro-Axis sentiments exist
among the Syrian Moslems. These sentiments, however, do not
spring primarily from any deep feeling of sympathy for the German
or Italian regime. The reasons for pro-Axis sentiments have arisen
indirectly and through lack of faith in French and British promises
and policy in the Near East. True the Nationalists among the
Moslems do not wish to see the country controlled either by Italy
or Germany. But their thinking is far from long-ranged. They
are concerned primarily in bringing an end to their mandate status
and do not look beyond this goal. If, moreover, the Axis powers
promise Syria freedom, it is worth considering the promise. Cer-
tainly the promises of France and Britian have failed.
But not all of the Moslem groups are pro-Axis. The secret
sect of the Druze, for instance, has always considered itself a
distinct people. In 1925 this body of hardy and independent moun-
taineers instigated the rebellion against French Mandate control.
Yet the Druze have strong British sympathies. These reach back
18
to the religious wars of 1860 when Great Britian secretly sun-
plied the mountaineers with arms. The New York Times of June 8,
1941 reports: "the sentiments of the tribesmen of Jebel Druz is
understood to be entirely pro-British." But the Druze number
only some 80,000 persons.
Christian sympathies within the country are less well
defined. The Christian element is prone to identify itself with
the Occidental world, and has sought European assistance as a
counter-measure against being engulfed by a Moslem majority.
Sincethe time of the Crusades the Maronite sect, containing
roughly 190,000 adherents, had strong affiliations with France.
But to date there has been no report as to whether Maronite sym-
pathies lie with Free France or with the Vichy Government.
Pro-Italian sympathies may well exist among certain of the
Christians. For Italy has let no opportunity go by to court
Maronite and Greek Catholic favor on occasions of church dig-
nitaries visits to Rome. Italy, moreover, using the Church as
a tool, has established numerous missionary schools and chari-
table institutions throughout Syria. The Italian Government
has helped to subsidize these insitutions.
The Protestant groups, however, (a congregation of approxi-
mately 9,000) are probably anti-Axis. They have been educated
largely in British and American mission schools; while many of
the Protestants have been to the United States as emigrants.
19
BIBLIOGRAPHY
HEMADER, SAIID
1936. Economic Organization of Syria, Beirut.
KOHNS, HANS
Nationalism and Imperialism in the Near East.
LANDAU, ROM
1938. Search for Tomorrow. London.
Jan Carter
JOHN FRANKLIN CARTER
Gay Franklin)
1210 NATIONAL PRESS BUILDING
I
PSF
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
Jun3 16, 1941.
MEMORANDUM ON CONVERSATION WITH LEONE FULASONI-BIONDI.
Mr. Biondi (nephew of the Cardinal and funx former Washington
correspondent of the Stefani Agency) has, as you know, applied Byr
American citizenship. He reports confidentially that great pressure
was broughtax on him through his family to return to Italy. That is
to say, his family urge him to stay here but the Italian authorities
fear the effect of his decision, due to his uncle's prominence.
Biondi believes it urgently important to start organizing a
Plan for a New Eprope, under freedom and justice, to offset the cur-
rent Nazi propaganda that they are creating a "United States of Europe".
Ee says Mazis now regard the rest of Europe as the New Englanders
regarded the west after the Civil War. They are engaged in peaceful
penetration, are placing Germans on boards of directors of French and
other non-German companies, are beginning to create vested interests.
Ee says the German system is the unity of a prison-camp but that the
Europeans are so weary, leadership is so disintegrated, and there is
such hopeless fatalism that the movement is dangerous (Witness, recent
Nazi success in establishing a French and Italian automobile cartel).
Biondi has no plan in midd but believes a small committee, perhaps
private, should be organized to counter both this tendency and the
Axis propaganda that the Anglo-Saxon "plutocracies" are deliberately
prolonging the war--propaganda which he says is effective in the case
of hungry European workers.
J.C.C.
J.F.C.
fullsmal
PSF
Franklin Carta
Folder
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
June 18, 1941.
MEMORANDUM ON MUNSON'S INTERVIEW WITH JOHN QUIN, RECENTLY RETURNED
ROUMANIAN MANAGER FOR THE I.T. & T. (interview as of June 16).
The attached memorandum containes three items of particular
interest:
1) Confirmation of the report that one major concession by
which Stalin staved off German attack was to put the Communist organ-
ization in the U.S. under Nazi direction;
2) Report that the Nazis for at least six months have completely
discounted the practical, moral and psychological effect of American
intervention.
3) Report of the mang* magnificent German organization of
their military-political policy and its weakest link: desire for
freedom on the part of the conquered peoples.
Quin is coming to Washington this week and I shall have a
more detailed talk with him on these and other points before sending
him on to the State Department.
Joy
J.F.C.
Rough summary interview with JOHN QUIN
Absolutely sure from many highly placed Rumanian sources that German
attack on Russia through Rumanians was all set and the hour set. Report
from this country to Hitler convinced him that Nazi propaganda itself
was not acceptable to the American people and that in addition they were
not well organized in this country - many obstacles due to prejudice
against Germany. He also realized from his reports that the Comunists
had a very effective sabotage and propaganda set-up in the U.S.A. Also
that it was more acceptable or less repulsive to a large proportion of
the American people.
The attack was called off with the understanding that the Nazis should
be in complete control of the Comunist propaganda and sabotage set-up
in U.S.A.
Is immensely impressed by efficiency of the German machine. Says the
whole Balkan political situation has been planned and manouvered by
Germany over a period of 8 years or more, using every device to set up
one element in the countries against another with clock-work precesion.
Says the Germans have completely discounted for at least 6 months past,
the entry of the U.S. into the war. And they have discounted this in
every way practically, psychologically and spiritually. These are not
observations on his part but are based on many facts and interviews
and personal contacts.
The weakest link in the German position in occupied countries is the
desire for freedom of the peoples conquered. This is purely dependent
today on the U. S. It is the last forlorn hope of all the abused peoples.
Finally, you cannot too much over emphasize the magnificient efficiency
of the German organization as exemplified in its military machine and its
parallel organization of non-military works.
The Germans have so many men under arms for whom they have no fighting,
that they possess a great store of experienced executive types and they
rotate these from army to civilian life and back again.
CBM
JOHN FRANKLIN CARTER
(Day Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
confidential
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
June 21, 1941.
MEMORANDUM ON CONVERSATION WITH MR. JOHN QUIN, FORMER ROUMANIAN
MANAGER FOR THE I.T.&T.
Mr. Quin stated that the Germans in Roumania had made no secret
of their intention to take over not merely the Ukraine but all European
Russia up to the line of the Urals. Tha Nazis want the oil of the Cau-
casus and the coal and iron of the Donetz Basin. Nevertheless, he does
not expect a Soviet-German War and believes that the Germans can get what
they want from Russia, up to the somewhat narrow limits of Russian ability
to cooperate.
Quin said the Germans in Roumania were making distinct headway among
the masses, who have been rather badly treated by their economic and poli-
cal masters. The Nazi "New Europe" offers an end to unemployment, higher
wages, higher prices. The Germans are delivering on this, thanks to a
peculiar "lend-lease" program of their own. This works as follows: The
Nazi Todt Road-Building Company (constructors of the big Nazi highways and
the Siegfried Line) get a contract for fifteen billion lei from the Rouman-
ian Government for future road-construction. The contract calls for the
delivery to Todt of 100,000,000 lei a month, irrespective of when work is
begun. Similar contracts for harvesting-machinery etc. thus augment the
totals of Roumanian exchange in Nazi hands.
The Nazis use this money freely, buying up control of department stores
lumber companies, and buying commodities freely at the first asking price
(which in Roumania is two or three times the expected sales-price). There
is, naturally, price inflation but in the meantime all classes of Roumaniars
believe themselves benefited. The future German proposal is that Roumania
shall supply Germany with oil, wheat, corn, lumber, beef, etc. and shall
be forbidden to make shoes, cloth, machinery etc. since Germany will sup-
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
"The Week in Washington"
Metropolitan 4112
Metropolitan 4113
- 2 -
QUIN INTERVIEW (continued)
ply all Roumanian needs. Competition will be eliminated and money will
become a mere token of exchange, without positive value of its own. The
metallic backing for currency will not be gold but steel--in Nazi armaments
Quin game an example of how this worked. The Roumanian Government
bought out the I.T.& T. properties for 250,000,000 lei. Quin requested
that this sum be converted into dollars and paid in New York but the Rou-
manians said that this was contrary to their economic agreement with Ger-
many. Quin then proposed that the money be converted into Belgian francs
to pay off the indebtedness of the Bell Company in Antwerpt to a Belgian
bank. This was arranged by the German banks on telephonic instructions
from Berlin. Quin heard the orders given verbally to the Bucharest
branch of the Reichsdiskontogesellschaft. "Give 110,000,000 lei to
General Blank in command of the Luftwaffe in Roumania. Give 110,000,000
lei to the commander of the German Army in Roumania. Keep the balance for
your own use." A week later, Quin says, the New York Office of I.T.E T.
received a reseptp receipt from the Belgian bank, acknowledging payment of
the equivalent of 250,000,000 lei in Belgian francs.
FC
psF
JOHN FRANKLIN CARTER
(Jay Franklin)
party
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
June 24, 1941.
MEMORANDUM ON CONVERSATION WITH ULRIC BELL.
Bell told me that the chief obstacle to effective cooperation
between the "Fight for Freedom" Committee and the Committee to Defend
America is the insistance of the latter's chairman, Clark Eichelberger,
on holding on to the latter and resisting proposals to merge the two
organizations. I suggested that the most desirable solution would be
to send Eichelberger on a good-will trip to Patagonia. Bell replied
more seriously that if Eichelberge could be given a diplomatic post in
New Zealand, it would help the cause mightily.
Bell also said that Wendell Willkie is extremely anxious to sit
down with you and have a heart-to-heart talk. Bell has seen a lot of
Willkie recently and believes that he is doing a good job but needs some
coordination and advice.
JEC.
.F.C.
I
PSF
JOHN FRANKLIN CARTER
(Jay Franklin)
carter
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
June 24, 1941.
REPORT ENCLOSING SEVERAL MEMORANDA ON VICHY-FRANCE ATTITUDES AS
COMMUNICATED BY RECENTLY ARRIVED REFUGEES.
1. Memo. on Martinique. Island is reported completely dominated by
pro-Vichy officials, mass of people (including Negroes) anti-American.
Armed forces weak. Our Navy could take island easily but at cost of
civilian casualties, increasing anti-American sentiments.
2. Memo. on France. Nation is now pro-British, food-shortages are
growing. Erench officials are conniving at outwitting German authori-
ties.
3. German submarine-crews are reported in Marseilles.
4. Colombian diplomat recently returned from Spain reports entire
country pro-British, anti-Nazi and anti-Franco. Food conditions are
terrible.
With the exception of this latter memo, all of the other reports
come from Jewish refugees.
ggc
D.F.C.
June 23, 1941
MEMORANDUM ON FRANCE
Levi-Straus, sociologist and leader of two anthropological ex-
peditions to Brazil on behalf of the Trocadero Museum, Paris, sub-
mitted the following information.
1. Although he is a Jew he observed that the French people
in Unoccupied France were not anti-Semitic and disliked Vichy's
anti-Senitic decrees.
2. Tood shortages at Montpélier and in Marseilles.
3. French civil servants are assisting unofficially the civil'-
ain population to outwit the Nazis in every possible manner. For
example, if a Frenchman wishes to cross into Occupied France he can
obtain a false Birth Certificate registering his place of birth
across the frontier so that he can theoretically visit his family.
4. Occupied France is almost entirely pro-Pritich now, although
after the Battle of Oran the reverse was the case.
5. Regarding propaganda nothing in the press nor on the radio
is believed in Occupied France but in the Unoccupied zone a certain
amount is accepted because the French feel that they are partially
free from Nazi influence.
C. "RUL is received clearly in Unoccupied France and is listened
to by a great many people. The consensus or opinion in that the B.B.C.
news and propagande talks are much better than those from VRUL.
Main objection is that the announcer from "PUL 1s a Swiss with
a. pronounced accent, which causes suspicion.
Programs would be far more effective 1° read by a Frenchman.
June 27, 1941
MPNORANDUM ON MARTINIQUE
Levi-Straus, French Jow, sociologist and leader of two anthro-
pological expeditions to Brazil, from Trocadero Museum, Parts, reached
Martinique from the south 06 France during latter part of May with
Certy refugees of different nationalities, all of whom had visas for
one 0.0 the American Republics. Upon landing at Martinique Levi-Straus
and all others were given tickets to concentration camp. Re pro-
tested and after much difficulty he was allowed to proceed to New
York Mter about two weeks delay.
His observations in Martinique were:
1. French Naval Officers were completely in control; they
are pro-Darlan, pro-Vichy and anti-American.
P. French Navy would unquestionably oppose U.S. occupation
but their strength is weak. They have the naval units reported in the
press including an aircraft carrier, 1 cruiser, and several instryers.
: few 75's one on shore but there are no heavy shore Patteries.
S. Entire population anti-American.
4. 'Negroes not opposed to Naziism or Fascian. He attributed
this to their love of mysticism.
5. That the administrative officials of scall districts were
2074 tyrannical than the Nazis would be.
U. S. Nevy could capture Martinique easily but bonhardment would
Name civilian casualities and thus increase hostility 09 population
townd the U.S.
June 23, 1941
MEMORANDUM ON GERMAN SUBMARINE AT MARSEILLES
M. Schuster, German Jew, has just arrived in New York from
Unoccupied France. During April in a café in Marseilles a group
of fifteen or twenty Germans in civilian clothes, obviously sailors
were discussing in German their exploits in a submarine. A German
officer appeared to tell them that they would not be sailing until
9 A.M. TO that they did not have to return until early in the
morning.
June 27, 1041
MEMORANDUM 0" SPAIN
Hernandez de Albs, former Colombian Vice-Consul in Paris, spent
April in Madrid, Burgor and Bilbao.
He found everyone to whom he talked in every walk of life pro-
Dritish, anti-Nazi and anti-Franco.
Royalist Officers told him that regardless of Franco and Suner
they would oppose any German penetration. They planned to conduct
guerilla varfare in the mountains and to make a good account of theme
selves.
Food conditions are dreadful; far worse than anywhere in Occupied
France.
fillsmal
JOHN FRANKLIN CARTER
(Say Franklin)
PSFCarter
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
June 25, 1941.
MEMORANDUM ON INTERVIEW WITH MR. H.THORESSEN, NORWEGIA AND GERMAN
REPRESENTATIVE OF GENERAL MOTORS (Returned from Germany last of May).
The first half-page of this report covers material already
submitted.
Thoressen reports extensive graft among lower Nazis, Gauleiters
and Gestapo, but not on a scale which conflicts with their loyalty to
Hitler. He reports extensive arrangements in Berlin against a possible
uprising, and has confirmatory impressions of extensive homosexuality
among the upper Gestapo.
He says that German war-weariness was pronounced until the
capture of Crete and has yielded to a mood of cocky world-conquest.
He gives interesting data on serious German shortages in
Gasoline, Rubber, Copper, Tin, fuel oil and food, and also on breakdown
of internal transportation.
He believes that Moscow will be taken by the Nazis but that
the Russians will keep Hitler's armies busy much longer than the three
weeks allotted for the conquest of European Russia.
for
Walker
GMEC Reich
June 23, 1941.
In February and March of 1941 prominent Germans, who have
apparently embraced all of the Nazi ideaologies, were quite open in
expressing the belief that Germany lost the war when the promised
invasion of England failed to materialize in the early Spring of the year.
Prominent among them was Dr. Hoeppfner, a native German,
formerly legal adviser to the Norwegian Embassy in Berlin and
through that connection counsel for a number of Norwegian and Swedish
business firms doing an active trade in Berlin.
He so expressed himself to Waldemar Husby Thoressen,
Norwegian and German representative of the General Motors Export
Corporation who returned from Germany the last week in May.
Thoressen said that 8. fairly comprehensive Norwegian
"Underground" has been established which would be of great value to
any invading army and would form the nucleous for guerilla warfare
against the Nazis.
He said that friends of his, who have moved freely between
Oslo and Berlin in the last five months, report that the Nazis have
increased the expenses of department store operation to such an extent
that they now own two of the largest and that they have Gestapo agents
in all of the important manufacturing plants throughout the country.
The chanceAf a revolutionary movement in the event of
invasion of Norway by Great Britain are excellent and that the
established "Underground" provides an excellent opportunity to rearm
groups there that would prove invaluable to any landing forces sent
to Norway.
He pointed to Sweden's flat refusal to place her Baltic
fleet at the disposal of the Reich, to admit Nazi troops within her
borders and to supply all of her excess foods for Nazi consumption,
accompanied simultaneously by full mobilization, should be of
particular significance now that Hitler has invaded Russia.
Turning back to Germany Thoressen said that while all of the
under-executives in the Nazi setup are grafters, and many of the
higher-ups are also buyable, the rank and file of the Gestapo, while
willing to accept graft will only do 80 by selling for exorbitant
judging
prices , such things as perfumery, fine furs, silk stockings and the
like and that, from the men and officers of the secret police he was able
to meet on friendly terms, nothing can swerve them from a completely
fanatical loyalty to Hitler as a God and to Himmler as some kind of a
super-being.
Of a dozen men of the Sestapo he met and entertained all gave
him the impression of homosexual leanings although they were all
recklessly and ruthlessly involved with women and in one in instance
a young officer showed him with great pride a silver rin) inscribed
inside with the words " To My Darling Wilhelm from his Himmler."
Thoressen described the ring as decorated with swatiskas interspersed
with three blain bands similar to the bands worn on one shoulder of
Gestapo uniforms.
That the Gestapo is prepared to meet any possible development
of revolutionary forces within the Reich, he said, is proven by the
fact that the secret police have taken over all of the strategically
located hotels, apartment houses and business buildings, located
in positions of command over broad avenues , parks and plazas throughout
Berling. These , he said, are heavily armed with heavy machine guns
GMEC 2.
and lighter sub-machine guns.
Since the Nazi successes in Greece and Crete, Berliners,
who had been openly sour on the war situation and apparent stalemate
in the invasion of England, and were quite openly asking each other
why Hitler and Churchill did not get together to talk peace terms, have
again become very cocky and talk of World domination openly.
Regarding the properties and investments of Americans in
Germany and Nazi captured countries the story follows a general
pattern.
All of the American-financed and built operating proper-
ties in Germany and the captured countries swarm with guards and
Gestapo operators and have as their titular heads the Gauleiter--who
is similar to the Governor of one of out States -- The Gauleiter is
the complete boss ofthe factory or the public utility and he can only
be overruled by Goering or the Gestapo.
The Gauleiter refuses to let American representatives
get at the papers covering thebusiness being done and the only
recompense has been various types of Reich securities of extremely
dubious value. In many cases nothing has been paid.
All of the Gauleiters are grafters both for themselves and
for their superior officers but buying them secures no more than small
personal favors such as securing luxury items, radios and things of
no value as recompense for properties taken by the Nazis.
The Reich is short of all necessary materials such as
gasoline, rubber, copper, tin, diesel oil, and foodstuffs.
All railroad rolling stock is old and so far as he could
discover no new freight cars or locomotives are being produced.
In many instances huge fleets of gasoline trucks which had been used
to haul raw materials to defense factories when railroad equipment
failed, now lie idle and many war factories are closed down for lack
of raw materials.
Thoressen specifically mentioned the closing down of a large
steel plant in Brandenberg and a tool making plant in the same district.
Thoressen is a sincere Norwegian-American who
came' to the United States in 1923 and took out his first citizenship
papers a few years later. Most of the intervening years have been
spent trave ling in Norway and Germany representing GMEC. He now
expects to get his final papers and become an American citizen unless
he goes back to Europe as a soldier in the fight against Hitherism.
He said that quite a lot of the information contained in this
report he has given to no one else because he felt that it would not be
believed.
He has been interviewed by Naval and Army Intelligence in
the United States and British Naval Intelligence at Bermuda.
He expresses the belief that Moscow will fall before the
Nazi Blitzkrieg but feels that the Russian Bear is 80 big that it will
keep Hitler's armies busy much longer than the three weeks allotted
for the campaign.
PSF
JOHN FRANKLIN CARTER
Gay Franklin)
carter
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
June 25, 1941.
MEMORANDUM ON INTERVIEW WITH MR. CALDWELL, I.T.&T. REPRESENTATIVE IN
SPAIN (As of June, 1941).
Caddwell reports Franco shifting from pro-Axis camp and becoming
ximmx alarmed by French shift to Axis, as indicating probability that
Spain will not get any colonies out of the "New Order".
He reports a good wheat crop but an eventuali shortage of about
400,000 tons by the middle of next winter. Nazi influence prevents
proper acknowledgement in Spanish press of American gifts of food,
medicine, etc. Germany has taken all Spanish olive oil. He believes
Spain will stay out of the war on almost any terms.
JC.
CALDWELL of International Telephone and Telegraph:
In Spain from 1925 to early June, 1941. Ten days in Lisbon on way out.
Col. Calarzo, personally loyal to Franco was suddenly made Minister of
the Interior; so unexpected was this that the former Minister, a henchman of
Suner's had actually taken his seat when Franco walked in and announced the
change. It was a curb to Suner's power and a shift toward personal loyalty
to Franco and away from Nazis.
The Minister of the Interior's duties included full charge of the National
Suner. Police and Foreign relations both of which had previously been controlled by
Reports of German divisions on the Spanish border have varied from 5 to 15.
This is naturally reflected in the Spanish attitude. Though Franco and the
people are completely opposed to getting into war they have to soft pedal their
attitude by concessions from time to Nazis.
Though the Spaniards have a good crop of wheat this year, they will be
short about 400,000 tons sometime in the middle of next winter. Lack of cotton
is very serious and would give work to the people.
No work has been done on Gibralter for a long time, It has little military
value today, only of sentimental value to the Spaniards, What they would like
would be more African colonies. Thus France getting on the German side is be-
coming more and more unpleasant to the Spaniards asit precludes their chance of
enlerged colonies.
Gifts which America makes to Spaniards of medicines, etc., are not properly
advertised for Nazi controlled Spanish press plays up Nazi gifts and plays
down ours. But the individual Spaniard is beginning to become conscious of our
gifts. Caldwell considers Spaniards are ready to appreciate us and suggests
shipping some wheat even though some slipped through to Nazis as it would have
big effect on Spaniards and keep them neutral. However, he seems to consider
Spaniards so hate any thought of war that they will stay out anyhow.
Coldwill says Germany has taken all Spain's olive- oil.
23
JOHN FRANKLIN CARTER
ps carter
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
MEMORANDUM ON INTERVIEW WITH WILLIAM MCKINNON (CITROEN CO.)
June 30, 1941
McKinnon reports that there is a strong underground organization
of young Frenchmen in France who would be helpful in the *** event of
an invasion of the Continent.
He says that Petain is senile and that Weygand has aged terribly.
He says that the Germans have got control of most big French
corporations by either confiscation, purchase of stock through worth-
less marks, and in some cases have got Germans named as directors and
have then voted large issues of shares giving themselves voting control.
Among the companies so affected are: Gobain Glass Works (affiliated
with Corning Glass), Gnome and Rhone Aviation Motors, Phcheney Cie.
********** (largest bauxite and aluminum producer), Westinghouse, etc.
J.C.F.C.
J.F.C.
Walker
June 27,1940.
William McKinnon
The Mr. W. Mack, mentioned in another report, is William
McKinnon, who has lived in Paris for 25 years, although a. Canadian
by Toronto. Is about 55 years old and has been over those
25 years financial adviser to Citroen--French Henry Ford-- and the
Patron bankers for Citroen.
He stayed in Paris until the day before the Nazi occupa-
tion and then went to Vichy for seven months. From Vichy he went to
Marseilles for two months and returned to the United States about
four weeks ago.
McKinnon was introduced to me by our mutual acquaintance
Carlisle, who incidentally brought us together. He is very fat and
extremely suave but impressed me as being sincere and reluctant to
give enything but actual facts in discussing conditions in France.
He said that the younger men in France have already established
an efficient underground and expressed the opinion that any invading
British of American forces would find that underground of valuable
assistance in trained men under arms of which he said he believed
there is a considerable hidden store.
Regarding Marechal Petain he said that senility has set in
while Gen. Weygand has aged ten years in the last ten months. Petain
is accompanied everywhere by a secretary and a physician who dominate
him completely physically, although at times the Marechal shows
flashes of independent thought and issues rulings which are entirely
independent.
The Nazis, through the Gestapo, have gained complete
control over all of the important industries in occupied and unoccupied
France either through outright confiscation or cloaked thinly by an
exchange of worthless Reichmarks or other securities and that
in some instances they have had themselves made directors and then have
voted share capital increases -- pure water -- but giving them
voting control.
Among the companies so affected have been the Gobain
Glass Works .-Affiliated with Corning Glass in the United States; the
Gnome and Rhone Aviation Motors plants; Phcheney Cie, largest
miners of bauxite and makers of aluminum products in France;
Westinghouse and manyb others. He said, that as far 88 he was able to
determine the Nazis have captured control of all of the important
menufacturing units in France and are following their usual custom of
letting securities of those companies decline to low points, then
buying in enough of them to insure control after the war is ended.
We succeeded in catching McKinnon on the eve of his
departure for Canada where he said he hoped to receive appointment on
one of the War Commissions.
Jay For lates
full
PSF
Faller
JOHN FRANKLIN CARTER
5-41
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Weshington"
Metropolitan 4113
July 10, 1941.
MEMORANDUM ON INTERVIEWS WITH INTERNATIONAL HARVESTER OFFICIALS
RECENTLY RETURNED FROM NORTH AFRICA.
Donald F. Clancy and (North African Manager for Motor Truck and
Industrial Equipment) and Frank H. Fowler (Manager of Algiers Branch)
were recently interviewed in Chicago by a representative of this project.
Both men were in substantial agreement on the following facts:
1) Plenty of food in French Africa, with rationing due to heavy exports
to France, including much olive oil shipped via Marseilles to Germany.
Shortage of manufactured goods, fuel and clothes. Daily steamship
service from North Africa to France.
2) Population loyal to Petain but strongly anti-Darlan. Many officials
are appointees of Radical Socialist regime in France and out of sympathy
with drift to Fascism in France. Germans are trying to win support of
Arab population but latter are waiting to join the winner. Strong pro-
American feeling is reported and it was felt that, if notified in ad-
vance, the population would refrain from fighting an American expedi-
tionary force and would welcome it.
3) French military forces are numerically strong, including aviation,
but lack ammunition and have few tanks. Numbers of French troops esti-
mated between 100,000 and 300,000; number of planes, 2,000; much artil-
lery was hidden from Nazi Armistice Commission.
Clancy also reported possible pro-American contacts with several
strategically placed French officials.
Originals of detailed reports sent to State Department.
22c
I.F.C.
PSF
Juny Carter
tolder 5-41
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington
Metropolitan 4113
July 10, 194d.
MEMORANDUM ON CONDITIONS IN MARTINIQUE (reported by French refugee
recently detained on the island)
The refugee (Levi-Strauss, ex-curator of Tracadero Museum) reports:
"It appears the French Navy are extremely Fascist and very pro-
Hitler. Saw no Germans in Martinique. Believes attitude is a combina-
tion of pro-Nazi French Navy in control of official situation and the
fact that they are scared to death that the U.S. will cut off their food
supplies. Says official Martinique has "gone crazy'. They have a
wonderful little kingdom Dar away from all war, absolutely in their own
hands, and do not wish this situation to be upset in any way. The
colored people of Martinique have been persuaded that if the U.S. takes
over the island, instead of having complete equality with the whites as
they do under the French, they will revert to the position of the negro
in the American South."
Jor
J.F.C.
July 9/41
INTERVIEW WITH LEVI-STREUS
About 32 years old. Ex-curator of 8 museum in Paris who arrived as 12 refugee
on e French boat in Rartinique and has recently arrived in New York.
Conditions on the refugee ship were very bed. Due to the fact that at one
time before the war he had been in the Intelligence Service of the French
and had known the officers of the French boat on which he sailed, he was
one of two refugees who were given 9 cabin. The rest were herded in the hold
of the ship with no toilet or washing accommodations. The food was very poor.
On arrival in Martinique they were boarded by French Naval officers and these
treated them in " very brusk and discourteous manner. He attributes this to
two things -- that they did not like refugees anyhow und the United States
had accused them of allowing the refugees to slip through Martinique so they
took no chances on it and herded them like cattle. .fter the ships officers
had put up a considerable fight on his behalf, he and one other man were
allowed freedom to Fort de France. The others were herded into one of two
concentration camps, either one scross the bay from Martinique or one back
in the country which is a set of militury barracks. The water was bad in
both these camps. Senitary conditions poor and food worse. They slept on
the ground. Refugees only remained in Martinique three to rive weeks and
then went on supposedly to South merica. He does not believe that by this
time there are any refugees to speak of left there.
It appears the French Navy are extremely Facist and very pro-Hitler. Fe saw
no noticeable Germans in Martinique, though he does not doubt that there are
5. number of undercover Nazis there. He believes the attitude at Martinique
is ** combination of the pro-Mazi French Navy being in control of the official
situation in Martinique and the fact that they are scared to death of the
United States because they would starve were we not feeding them. He says
mythine that merica requests in Martinique is done immedistely. Fe says
official Martinique have absolutely "gone cruzy". They have a wonderful
little kingdom far away from all war, absolutely in their own hands, and do
not visi, this situation to be upset in any way. The colored people of
Partinique have been persuaded that if the United States takes over the
Island, that insteud of having complete equality with the whites as they
do under the French, they will revert to the position of the negro in our
South.
ABC
\
Carly Folder
Raw The
THE WHITE HOUSE
5-41
WASHINGTON
July 11, 1941
MEMORANDUM FOR
JACK CARTER
Please see Sumner Welles
and ask him if he can push through
Curtis Munson's visa quickly.
F. D. R.
JOHN FRANKLIN CARTER
(Jay Franklin)
P5F Carter
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
July 10, 1941.
MEMORANDUM ON MUNSON'S MISSION TO MARTINIQUE.
AS the attached memorandum from Curtis Munson shows, the
French authorities in Martinique have delayed approximately a month
in issuing him a visa for his mission to the island for the
Department of Agriculture. The State Department is not hopeful that
the Commander at Martinique will observe the agreement as to admitting
U.S. officials in this case. Since Munson's services are too valuable
to permit him to be held indefinitely in idleness, waiting action from
the French, I am requesting a decision as to whether he could be al-
lowed to take other assignments, submitting to this French violation
of their agreement as to visits of U.S. officials to Martinique.
In
J.F.C.
julyqui
On June 9th I was instructed to report to Mr. Appleby, Undersecretary
or the gricultural Department, as they desired me to 20 to Martinique for
the purpose or looking into food shortages there, especially in relation
to deficiencies which might cause ill health. Mr. Appleby immediately sent me
to Mr. Leslie Wheeler, Director of the Foreign Department of Agriculture, and
I WAS given an appointment on June 13th as Collaborator of the Depart-
ment of griculture. By that time I had found that the most feasible method
or transportation was via Pen American \irways which would leave once a
week on Wednesday for Miami, hence to Puerto Rice and Martinique. Mr Wheeler
was extremely efficient and rushed through everything including lists of
United States surplus food commodities, letters from Dr. Parrin of the Health
Department to the doctors in Martinique and various other miscillaneous in-
formation and instructions pertaining to my work. LS far as the Department
of griculture was concerned, I was prepared to take the plane on June 18th.
On June 16th it because apparent that the French visa would not be forth-
coming as they had to communicate with the Commander or the Islands and this
would necessitate a delay of a day or two. This meant that I was not able
to leave on June 18th and set back my departure date to June 25th when the
next plane would be going.
On June 23rd it appeared that there would be some delay in getting the
French visa. This threw my departure to July 2nd. On June 30th it again
appeared that there was some difficulty in securing a visa. This threw my
departure to July 9th. Cn July 7th I called Fr. Rieber of the State Depart-
ment and he told me that they were encountering many difficulties in the
matter of securing my visa and that I would not be able to leave on July 9th.
I feel it is time I report to you in writing as I have now been almost
a month in the service of the Department of griculture which service has
consisted purely or being on tan twenty-four hours of the day awaiting my
visa, and in order to be available to the French should they desire to inter-
view me personally. I desire to clear myself of any suggestions that I was
not prepared to leave at R moment's notice or that my superior, 12. Theeler
was anything but promot end efficient in this matter.
Yours truly,
Curtes B. Numser
Curtis B. Munson
JOHN FRANKLIN CARTER
(Jay Franklin)
pst
1210 NATIONAL PRESS BUILDING
Carty
"We, the People"
Sporfi.
WASHINGTON, D. C.
"The Week in Washington"
Metropolitan 4112
Metropolitan 4113
July 11, 1941.
MEMORANDUM ON SENATOR WHEELER'S ICELAND INFORMATION.
This information was supplied in confidence by Eddie Cooper,
the Jewish boy Wheeler has hired to prove that he (Wheeler) is not
anti-Semitic.
Information on Iceland expedition was supplied by a number of
Boston mothers who wrote Wheeler protesting that their sons were
being loaded on board transports with equipment, etc., which suggested
a Polar type of expedition. Wheeler also is believed to get some
information from the Navy--both officers and enlisted men--where there
is said to be hostility to Secretary Knox. Neither the mothers nor
the Navy men seem to realize that by these actions they are endangering
the lives of their own sons and their own comrades. This condition
seems to call for tighter regulations of some sort to prevent leakage.
for
JFC
Wheeler
Wheeler's office claims they get their information from letters through
the mails.For instance, they had no less than three letters from Boston telling
of ships loading for the North outposts.
Letters come from Mothers .And letters from sons in the services to their
families.
And in addition to this the isolationists claim that Knox is despised
by the Navy people. I was even informed that the chair I was sitting in
held up an Admiral not long ago who view ed Knox with great Thought
he was off his base and thought we would make a great mistake in moving away
from our own shores in any fighting.
They. hold that it is easier to defeat Hitler when we get him away from
home and at us.In other words they say just reverse Dunkerque. It was hard enough
getting out let alone trying to go back in.
It was told to me that Lindbergh is not 80 sharp.That he sweats over his
speeches and allows no one to see them any more.
Wood was held to be a man with the flag in one hand, the constitution in
the other and a hard business head in between.
Their alarm comes from the fact, like Wood--who sees a fascism or socialism
coming--that they believe we will never pull out of this with the same system
of government--no matter what.
"ere is where Wheeler links up the Supreme Court battle. They do not hold
that trusting Roosevelt is enough--there will be other government heads.And
they hold that once government comes by decree there is no going back.
I could detect a feeling that they are coing around to the pointthat
the moves by the President are defensive while offensive.That is we are
in a situation of moves between Hitler and Roosevelt and Roosevelt may win
2
by his $0 strategy.
However here is the strong argument.My informant told me he personally
does not want to live to see the day when the man in the street will say
"Wheeler and Lindbergh were right".Well,hell,any prophet of doom knows of that
day-of course it wont all be rosy and there will be those who say that.But
again they are basing their logic on the last war.Wheeler evidently sees
himself another Bob LaFollette,Sr.
They say--why doesn't the President come out and ask for a declaration
of war in all honesty instead of his sliding policy.Then they will, 1fhe
wins, go out and support him.
They fail. to see that their objections come from Roosevelt hate--they
wont admit it and much of it they probably do not realize.
On the Iceland affair, they claim the tip-off came in the message
of the President to Congress on May 27. In this message Iceland was,they
say,mentioned four times ,So with their outside information they put two and
two together. Their hate of knox also would lead you to believe that the Navy
itself, some components, 18 not above supplying them with information-and that
goes all the way through all ranks.
One one side of the picture however there is this fact that if some
people think they are too clever for others and actually hide things from
Congress from an official standpoint naturally Congress resents this when
some members of Congress know what is happening but cannot get confirmation
from the government ,or be taken into the confidence of the government .And
it is this condition that make some of the members of Congress rave end rant.
of course, tho' I would not swear to it,they are weary.And naturally they
think themselves abused.They forget all the lousy things they have said and
the attacks they have made and feel the President, Churchill and others are
persecuting them.
It might be of interest to note that the brilliant Helen Essary yesterday
back tracked away back.
/
orier
of
:
The
3
They speak with contempt about McWilliams and the others.And base their
opposition on civil liberties,one man government, centralization of power
and abuse through power.They point to the needs here in America, etc.
In a way it is like going fanatic on religion.All energies are in one line
of research and they prove every point. It is all consuming and 80 it gets to
be one sided.
Confidentially, Charles Murray told me he was at a hearing in the War
a epartment the other day.Wheeler came in a right away started on the s--b--.
"
And whispering gift hat -- and so is getiing us into war" et cetra, et cetra.
Jay
Carter
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
PSF
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
July 16, 1941.
MEMORANDUM ON "LITTLE SHIPS"
There are a number of things about the "little ship" program
until August 1
which I do not like. I have been asked not to report them/ in order
that the "case" may be made perfectly clear, but do not feel justified
in wasting time in order to prove a point:
1) The bonus ($2,000 approximately) offered by the Secretary
of the Navy for the early completion of the first small unit is being
charged up against construction-costs on the second full-side unit
being built in Texas out of Lend-Lease funds. This does not seem to
be fair to the British or a fair measure of actual costs.
2) The keel of the second full-size unit was not laid until
six weeks after the completion of the trials of the first unit.
3) No preparations, either as to sites or materials or personnel,
have been made for the construction of the twelve full-size units on
the Great Lakes.
4) Mr. Hancock seems to have been pretty thoroughly pushed out
of the picture.
I request that this report be kept confidential, as otherwise
it may make matters difficult for my source of information in the
Navy Department. I understand that your naval aide is pretty fully
informed as to the actual facts.
J.F.C.
THE WHITE HOUSE
WASHINGTON
CECRET
July 17, 1941.
MEMORANDUM FOR
THE SECRETARY OF THE INTERIOR
FOR YOUR INFORMATION AND
RETURN FOR MY FILES.
F. D. R.
DECLASSIFIED
By Deputy Archivist of the U.S.
By W. J. Stewart Date MAY 1 1972
PSF: Jan Carter Folder 5-41
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
"The Week in Washington"
Metropolitan 4112
Metropolitan 4113
July 16, 1941.
MEMORANDUM ON SENATOR WHEELER AND THE GREAT NORTHERN RAILWAY.
In the course of investigating foreign commitments of American
corporations, I have come across information to the effect that the
has been
Great Northern Railway ix largely dependent for its revenues on trade
with Japan. The G.N. silk-trains have been special and it is reported
by furnows
that in recent times the G.N. has been doing a big business shipping
scrap-iron to Seattle for export to Japan.
G.N. is extremely potent in Montana pobitics along the so-called
"high-line". It is understood that some of Senator Wheeler's support
at the Chicago Convention last year came from G.N. influence in Minne-
sota. It is also further reported that Senator Wheeler was active in
helping the G.N. obtain from the Interstate Commerce Commission a
reduction of freight-rates on petroleum shipped from Cutbank, Montana,
west to Seattle and East to Fargo. This was done in the face of
bitter opposition from the other railroads and oil companies.
The suggestion is offered that Senator Wheeler may command
some substantial economic and political support from this and similar
interests with a commercial stake in trade with the Axis.
Jue
U.F.C.
y
THE WHITE HOUSE
WASHINGTON
SECRET
July 17, 1941.
MEMORANDUM FOR
THE SECRETARY OF THE INTERIOR
FOR YOUR INFORMATION AND
RETURN FOR MY FILES.
F. D. R.
Memorandum from John Franklin
Carter, dated July 16, 1941, re Senator
Wheeler and the Great Northern Railway.
DECLASSIFIED
By Deputy Archivist of the U.S:
By 1. J. Stewart
Date MAY 1 1972
Jan Curter Folder 5-41
\
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
File Confidential PSF
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
July 22, 1941.
MEMORANDUM ON CONDITIONS IN INDIA AND THE DUTCH EAST INDIES.
Capt. Edward Sutton, in command of SS "Honolulan", in from Rangoon,
Bombay, Calicut, Singapore and Dutch East Indies with general cargo, reports'
Political divisions of native population of India about what they
were before the outbreak of the war, no Fifth Column activities reported.
Singapore is an armed camp.
Dutch have situation well in hand and able to offer stiff resistance
to Japanese. Some Fifth Column activities in East Indies, due to intern-
ment of all who express sympathy with Germans or otherwise arouse suspi-
C |on.
Only food shortages affect European population with respect to Euro-
pean food such as beef and table delicacies imported in past.
Sutton sighted only one naval vessel--a British cruiser off the Cape
of Good Hope--on his voyage from Singapore, until he sighted the U.S.
patrols off the East Coast of the United States.
Jr
J.F.C.
Capt. Edward Sutton
July 16,1941.
ISS6 Honolulan
Walker
Capt. Edward Sutton, native of Los Angeles, brought the
Honolulan, chartered to Isthmian into New York today.
He had just completed a voyage covering Rangoon, Bombay and
Calicut, India, Singapos and the Dutch East Indies carrying a general
cargo.
He reported that in India some shortages of European foods, such
as beef and items which have been considered as delicacies, have
appeared.
The Whites in India he said were 100 per cent pro-British while the
native Hindus are split about as they were before the war with some
factions against the British and some for them strongly.
He said that he had heard of no fifth column activity although
Nazis have been arrested and interned along with other German sympathyz-
ersX.
At Singapore he said that the city is an armed camp with
soldiers teeming in the streets, bomb shelters completed, and
a good sized fleet of naval vessels at anchor.
With the exception of Singapore he sighted no other naval vessel
on his trip save a British cruiser when he rounded the Cape of Good Hope.
He did see some patrol boats of the US in the Atlantic near the United
States.
Regarding the Dutch East Indies Capt. Sutton said that the
Dutch apparently have the situation well in hand and promise a stiff
resistance to any Japanese aggression , much stiffer than it would have
been a year ago. He reports that the people of Java are looking to
the United States for supplies such as trucks, aeroplanes and
guns and ammunition and much is expected to flow there in coming
months according to the Dutch inhabitants he talked with.
He reports that the possibility of Fifth Column activity is
expremely small in the islands because the Dutch continue to
arrest and intern all of those who express sympathy with the German
cause or arouse suspicion in any way. He also said that the
number of Japanese merchants seems to be smaller than a year ago.
He also reported a shortage of foodstuffs in the islands
about the same as he observed in India but said that in neither case
was the situation anything more than inconvenient to the white
population as the natives in both countries live off the land.
PSF:Carter
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
July 22, 1941.
MEMORANDUM ON THE CHICAGO SITUATION AND THE "AMERICA FIRST" SET-UP.
Attached herewith a confidential memorandum prepared by a repre-
sentative of "Fortune" magazine, who was recently assigned to Chicago
to investigate the general situation with relation to the "America
First" organization and the general state of public opinion. This
memorandum was prepared for background guidance and not for publication
and is of such interest that I forebear to summarize it.
gr
J.F.C.
Although Chicago is the home of the AMERICA FIRST COMMITTEE and reputed
to be an isolationist "stronghold", it is, in all likelihood, no more isolation-
ist than any of the other great American cities. It has its British-hating Irish
minority; and its pro-Nazi German minority. It has its sections, corresponding
to New York's Yorkville, where Bundists sometimes appear in the khaki uniform
of the Sturm-Abteilung and where motion picture news reels of German victories
are greeted with cheers and "heils".
It is from these Irish and German minorities, as well as from the
ranks of the dyed-in-the-wool native isolationists that the America First Com-
mittee recruits the bulk of its membership. But the backbone of this Committee
are the vitriolic Roosevelt-haters associated with "big business". It is they
who supply most of its funds; they who shape its policy; and they who, with the
support of the Chicago Tribune, have made it virtually impossible for any prom-
inent Chicagoan to assume the leadership of an interventionist drive.
Various attempts have been made to lead such a drive. But in almost
every instance the interventionist in question has been forced to withdraw,
yielding to the pressure brought to bear upon him by business associates or
to the fear of a Tribune "smear campaign". Such, for example, was the exper-
ience of Adlai Stevenson, one of Chicago's most promising young lawyers, whose
law partners made plain to him the impossibility of retaining in their firm
a man whose interventionist activities were antagonizing so many of their
clients.
That does not mean that no prominent citizen of Chicago dares to be
an interventionist. On the contrary, the interventionist group is strong. It
includes men like Clarence B. Randall, vice president of the Inland Steel
Corporation; Laird Bell, one of the best-known Chicago attorneys; such well-
known Episcopal clergymen as the Rev. Dr. Duncan H. Browne and the Rev. Dr.
-2-
John Timothy Stone. It includes even citizens of "Axis descent" such as Judge
John Gutknecht and Judge George Quinci; and despite the attitude of Dr. Robert
Hutchins, the so-called "boy president" of the University of Chicago, it in-
cludes the great majority of the members of the faculty of that institution.
Yet, none among these interventionists dares raise the standard and rally
the others round him.
The result is that, whereas the AMERICA FIRST COMMITTEE is functioning
as a local committee, under local leadership, supported largely by local funds
and appealing to local pride, the only attempts being made to cultivate inter-
ventionist sentiment are being made but half-heartedly by the"Committee to De-
fend America by Aiding The Allies"and the"Fight for Freedom Committe".
AMERICA FIRST VS. THE INTERVENTIONIST COMMITTEES
In a section where local pride is strong, where there exists a strong
undercurrent of jealousy of the East and especially of New York, this is im-
portant. The average Chicagoan, like the average citizen in most other sections
of the Middle West, resents Eastern leadership. However isolationist he may be,
he feels that he is just as patriotic, just as good an American as the average
New Yorker, and perhaps a better one. The mere fact that some of the leaders
of the "Committee to Defend America" were associated with the old"Geneva Inter-
nationalist Group" makes him suspicious; because he still believes that the
United States should avoid "foreign entanglements". Hence, compelled to choose
between the leadership of a man like General Wood, a former officer of the
United States Army and a Chicagoan of unquestioned standing, and the leadership
of comparatively unknown Easterners some of whom may be suspected of having
axes to grind, it is understandable if the average Chicagoan follows the stan-
dard of General Wood.
Soon after I reached Chicago I visited both the local and national
offices of the"America First Committee" on the pretext of obtaining a copy of
one of Colonel Lindbergh's speeches. Both offices were alive with activity. I
not only got the speech, but was urged to take along other America First "lit-
-3-
erature". I then sought out the office of the "Committee to Defend America". It
was not listed in the telephone book and I was obliged to ask "Information" for
the address. The office staff comprised two young girls, with a young man in
charge. He was Paul Lyness, who, I was informed, had just taken his Master's
degree and was working on his first job. Lyness struck me as being competent
and alert, if somewhat young for so important a post.
From conversations with him, I gathered that there existed a feeling
of rivaly between his Committee and the "Fight for Freedom" In fact, he ad-
mitted that such a feeling existed, and said how regrettable it was and how
urgent the necessity for working together. Albert Parry, a Russian by birth,
appeared to be the guiding genius of the "Fight for Freedom" group. Parry,
also, struck me as highly competent; but he spoke with a strong Russian accent,
and I found myself wondering what would be the effect of that accent upon
100 percent native Americans in need of conversion to the interventionist
cause. I was told at the "Fight for Freedom "ffice" that the "Committee to
Defend America" was on its last legs in Chicago and undoubtedly would soon
fold up.
Both the "Committee to Defend America" and the "Fight for Freedom"
Committee seemed to be handicapped by lack of funds. The America First Committee,
on the other hand, obviously was well heeled. Generous contributions undoubtedly
are being received from German-American, if not actually from Nazi sources.
Since such contributions frequently were handed in at meetings in sealed en-
velopes, it was not easy to trace their sources. But, in addition, General
Wood is reported to have made large contributions; and the same is true of
Mrs. Janet Ayer Fairbank, whose desire to "beat Roosevelt" had caused her to
campaign for Landon in 1936; Sterling Morton, of the Morton Salt Company;
William Regnery, well-to-dp window shade manufacturer, who, until recently,
it is said, had a large picture of Hitler hanging on a wall in his office.
Regnery resigned as a trustee of Hull House in what amounted to a protest
over the issuance by Hull House of an Anti-Nazi pamphlet. Morton, incidentally,
-4-
endeavored, a few years ago, with other Middle West business men, to found a
labor-busting organization known as the "Builders of America".
I could get no factual evidence of Nazi contributions to the America
First Committee, although it is generally believed that they are being made.
In any event, the February issue of the German-American National Alliance's
"News Letter" published an appeal to its membership to support America First
and the "Citizens Keep America Out of War Committee" both "financially and
morally".
Whereas, thus far, the "Committee to Defend America" and the "Fight
for Freedom Committee" have had difficulty in obtaining important speakers,
or even unimportant ones for that matter, the America First crowd are well
supplied. Their list includes General Hugh Johnson, whose fee is $750. per
lecture; Major General Paul B. Malone, who gets $200.; William R. Castle;
General Thomas Hammond; John T. Flynn; Phil La Follette; Kathleen Norris;
Oswald Garrison Villard; and Major Alford Williams.
At the recent graduation exercises of the the Dale Carnegie Public
Speaking Institute in Chicago, I was informed, seven of the graduates chose
as their"thesis"the need for keeping America out of war; and when intervention-
ists conceived the idea of getting some of the "students" at the Institute to
speak on behalf of aid to Britain, they found that virtually the entire "student
body" was working for America First at $25. per speech.
ARE THE NAZIS INFLUENCING AMERICA FIRST POLICY?
The chief purpose of my mission was to ascertain, if possible,
whether there is any direct link between the Nazis and America First and
Colonel Lindbergh. The striking parallel between some of Lindbergh's utterances
and Berlin propaganda statements would seem to indicate that, if nothing more,
the"guidance memoranda" of the German Foreign Office or Propaganda Ministry
are being made available to some chosen few adherents in this country. But the
most responsible persons with whom I talked in Chicago all agreed that if
there is a link, it exists unbeknown to General Wood and other leading lights
-5-
in America First. Wood, himself, has declared that if the United States enters
the war the country will have his loyal support. Clarence B. Randall, Laird
Bell and Mr. Embree, president of the Julius Rosenwald Foundation, all of whom
know General Wood well, were convinced that his activity in America First was
prompted largely by his fanatical opposition to the President's policies; that
the General had no use for the Nazis or their doctrines; and that he would not
tolerate any dealings with them if he knew of such dealings.
As was to be expected, I met with all varities of rumors indicating
that this person, or that person, was on the friendliest terms with the Nazis
in most cares,
and acting as go-between for them with America First. But with one exception,
all these rumors I found, on investigation, to be mere talk. The chief exception was
that such reports were larguly,
James S. Kemper, head of the Lumbermen's Mutual Casualty Insurance Company.
From various sources I learned that Kemper had been a frequent caller at the
Nazi Consulate in Michigan Avenue before it was closed; that his wife, whose
maiden name was Zeising, is of German extraction; that he maintains as a
mistress, in the Lake Zurich Section of Chicago, his former secretary, Celeste
Baumann, who is violently pro-Nazi; and that his present secretary, Ethel Mc
Donaldm of 4447 North Paulina, in the Ravenswood Section of Chicago, has con-
fided to close friends that she is suspicious of her employer.
I tried unsuccessfully to get an introduction to Miss McDonald. Had
I remained longer, it was my intention to arrange an introduction, if possible,
and seek to win her confidence. But all the information I obtain tended to
confirm my impression that there was definitely something suspicious about
Kemper. Though an aredent supporter of America First, he apparently has not
been prominent in the Committee. Last December, he made a speech before the
Merchants' Association in New York and warned that entrance of the United States
into the war might so dislocate American economy as to fasten upon this country
some permanent form closely resembling socialistic economy.
Kemper, who was formerly president of the United States Chamber of
Commerce, attended the meeting of the International Chamber of Commerce in
-6-
Germany just before the outbreak of the present war. Throughout his stay in
Germany, he was made much of by the Nazis. Sigrid Schultz, correspondent of the
Chicago Tribung in Berlin, told me that while Kemper was there she had him and
his wife to lunch along with Fritz Wiedemann, and that both Kemper and his wife
were "violently pro-Nazi".
While I have no evidence to prove that Kemper has acted as a go-between
for the Nazis with the America First Committee, I believe this lead is worth
following up; especially, as Kemper has been in South America recently and
has made public a statement, Obviously Nazi-inspired, to the effect that goods
being sent to England by the United States under the Lease Lend Bill were being
shipped back by the British to South America and sold there.
A nother Chicagoan, mentioned as a frequent visitor to the Nazi
Consulate in Michigan Avenue before it was closed, is William J. Grace, an
attorney, of 77 West Washington Street. He is prominent in the "Citizens' Keep
America Out of War Committee". Still another whose name was given me was
George W. Glow, vice president of the Harris Trust Company, who is said to
have declared publicly that he'd rather live under Hitler than under Roosevelt.
The attitude of Dr. Hutchins of the University of Chicago is a source
of considerable puzzlement to many of his friends; but, as in the case of General
To Personal ful
Wood, those who know him best attribute his motives to his "zeal for perfection".
He sees the flaws in Democracy, they say, and feels that since Democracy has
"failed" we have no right to criticize other forms of Government. But in the
little social group in which Hutchins moves is Claire Dux, a Polish-born German
opera singer, now the wife of Charles H. Swift. She is known to have enter-
tained visiting German officials, and is said to be strongly pro-Hitler. Some
of Hutchins' friends feel she may have influenced him.
William Benton, of the Advertising firm of Benton & Bowles, who
was at college with Hutchins and followed him to Chicago a few years ago after
he had made a fortune out of advertising, also is mentioned as having influenced
Hutchins. Benton, it is said, while taking no prominent part in the America
-7-
First Committee, was the author of the first newspaper advertisements put out
by the Committee.
THE ROLE OF THE CHICAGO TRIBUNE
But the greatest single factor in the establishment of America First
in Chicago appears to have been the Chicago Tribune. Denounced by many Chi-
cagoans and ignored by some, it is, nevertheless, recognized as a "power" in
the city. The ruthless methods of the Annenbergs have gone far towards main-
taining its circulation, and newsdealers who fail to display the Tribune prom-
inently still are victims of the Annehbergs' "strong arm" squads.
The Tribune's support of America First is said to derive from
various causes. According to some of the stories I heard - and I should like
to make it plain that these are only hearsay - "Bertie", as the Colonel is
called, attended Harrow in his youth and Was generally detested by the student
body. He became so unpopular that his removal finally was demanded. Later, so
the story goes, he sought to have himself appointed as Ambassador to Great
Britain, but the British Government made it plain that he would be persona
non grata.
This much is not hearsay; the Colonel is a vitriolic Roosevelt
hater, and this habred is largely responsible for his attitude.
It might not be out of place to mention here reports of Bertie's
war record, which are current in Chicago. The story is that, just before his
regiment entered the Battle of Cantigny, Bertie sought to persuade the regimen-
tal surgeon to have him invalided back to Paris. The suregon refused; whereupon
Bertie is said to have had himself evacuated in one of the regiment's ambu-
lances. Only his position as a leading publisher, it is said, saved him from
court martial and possibly from severe penalties.
RECOMMENDATIONS
It seems to me of the utmost importance, if Chicago is to be
sold "intervention" that a concerted effort be made to arouse public sentiment
there. This, I believe, can best be achieved through a LOCAL organization, and
-8-
not through branch offices of "outside" organizations. While it probably will
be impossible to induce any prominent Chicagoan to actively head such an organ-
ization, the support of such men as Clarence Randall, Laird Bell, and leading
members of the faculty of the University of Chicago could no doubt be obtained;
and it might be possible to have some other Middle Westerner of the same stature
as General Wood head this new organization.
The Middle West is patently resentful of the East's attitude; the
attitude, that is, of loftily patronizing the Middle West as "isolationist".
From the people I talked to, and they were people in all walks of life, I got
the impression that, however much the Middle West may dislike war, and may want
to keep out of war, it will, if war comes, be found just as patriotic and just
as ready to accept its share of the responsibility.
XXX
full
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
ps Farter
WASHINGTON, D.C.
"We, the People"
"The Week in Washington"
Metropolitan 4112
Metropolitan 4113
July 30, 1941.
MEMORANDUM CONCERNING CHIEF OF OLN.I. KIRKE.
AM confidentially informed by a reliable source that Captain
Kirke, present chief of O.N.I., is extremely *dissatisfied and is
considering asking to be relieved of this assignment. Causes for
dissatisfaction are said to be:
1) Failure of the Navy to assign him an assistant agreeable
to him;
22 Belief that he should be called on by the White House to
give information directly on strategic information; matters
3) Jealousy of the new Donovan set-up.
Hirke is regarded as an able officer and a fine man by those
who know him. I do not. No suggestion offered beyond these statements.
Jrc.
.F.C.
JOHN FRANKLIN CARTER
PSF
(Jay Franklin)
Carter
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
"The Week in Washington"
Metropolitan 4112
July 30, 1941. Metropolitan 4113
MEMORANDUM OF CONVERSATION WITH RALPH VAILL (Technical Adviser, Iron
and Steel Section, Manchuria Heavy Industry Development Corp).
Vaill, an Annapolis man, vouched for by George Wolf and Carlisee
MacDonald of U.S.Steel, resides at Hsinking, Manchuria. Formerly he
worked for the Soviet Steel Trust, leaving Russia in 1936. He returned
to the U.S. this spring and is anxious to go back to Manchuria.
He said if Hitler established his Archangel-Volga Line he would
have about half of Russian heavy industry. He would lack control of
copper, zinc, lead, antimony and Russia would still have plenty of coal,
oil and iron in Kuznetz and in the Urals. The Urals contain the bulk
of Soviet special steel (ordnance) production, including Magnetogorsk
(2) million tors), another million ton unit further north and many/small
plants with an aggregate capacity of 12 million tons high-grade steel.
1200 miles East in the Kuznetz Basin is 14 million tons steel capacity,
chemicals, coal and relatively self-supporting. About one-third of
Russian armament capacity would be outside the German range. The Chelia-
binsk "tractor-plant" produces tanks and guns and at Sverdlopsk is the
greatest foundry and machine-shop in the world. a total supply of about
6 million tons effective steel production would be left to support the
Red army.
Drawbacks to this is the concentration of the aluminum industry
(for aircraft) near the Dneiper Dam and the loss of manganese from the
Ukraine.
Turning to the Far East, Vaill said that Russia and Japan were
natural enemies but that the Russians had outfought the Japanese so
well in recent border fighting--which he says is continuous along the
Amur--that he does not believe the Kwantung Army would dare attack Sibjin
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
- 2 -
Metropolitan 4113
Vaill said that Matsuoka signed up with Hitler after getting an
ultimatum from Stalin ordering him to do so. Matsuoka didn't like it
but hoped to use it for a bargaining point to make terms with U.S.A.
and Great Britain. This was squelched when we turned down hints that
Matsuoka might visit the U.S. Vaill's source of information on this
point is Asaoka, adviser to the East Manchuria Development Company,
an old friend of Matsuoka.
Japanese cupidity and Army stupidity is wrecking Manchuria.
Japan is milked dry by the China Incident and by American economic
pressure. Vaill said the Japanese are much overrated and that the
Russians are infinitely superior. AS evidence of business difficul-
ties, he said the Chinese coolies working the coal and iron fields
used to ship back to China 70% of their wages, about 70,000,000 yen a
month. This drain on Manchuria was dangerous to the Japanese economy
so a law was passed forbidding it. Then the coolies left Manchuria and
Vaill knows of four blast furnaces shut down as a result of this labor
shortage, as well as inability to buy machinery from the U.S.A.
The Army is gambling on a Hitler victory over Russia. The Indo-
China move is designed to widen the circle of alleged Anglo-american
"encirclement", to cut off the flow of munitions via Burmah to Chiang
Kai-Shek, and to establish a good trading-position for the peace set-
tlement. Vaill expects the Nanking Puppet Government to abrogate the
foreign concessions and extraterritorial rights.
Vaill believes that our policies are slowly crushing Japan, the
process being materially aided by Japanese Army policies and trade
greediness. He said that every Manchuria business the Js touched
disappeared and that the Chinese were beating them in every line of trade
J.F.C.
PSF Jack Carter 5-41
THE WHITE HOUSE
WASHINGTON
July 31, 1941.
MEMORANDUM FOR
JACK CARTER
I suggest you take this
matter up with Colonel Donovan.
F. D. R.
JOHN FRANKLIN CARTER
1210 National Press Building
Washington, D. C.
July 30, 1941.
MEMORANDUM ON INTERVIEW WITH MAJOR HENRI HALPHIN (VICHY-FRENCH)
Halphin has been two weeks in the U.S.A., having arrived
from Vichy via Dakar and Martinique, financed by the Vichy
Government. He is accompanied by his wife, British. Halphin's
family is connected with the French Line and French ship-
building industries.
The Halphins say that the French would welcome a British
or an Anglo-American Expeditionary Force. French women are
bitter against the Germans. This includes the demi-monde, who
would prove valuable allies in espionage (Fifth Column?)
activities. The peasants would rise against the Germans, aided
by the priests, who alone know where the hidden stores of rifles,
machine-guns and ammunition are secreted.
The suggestion is made that the regular intelligence
services check up promptly on Halphin, who might, if his bona
fides is established, provide a valuable means for identifying
and classifying French refugees in the U.S.A. His present
address is 2 West 67th Street, New York City.
J.F.C.
July 28, 1941.
Maj. Henri Halphin
Walker
Major Henri Halphin of the former French Army, also formerly a
director of the French Line (Transatlantique General etc) now
report. living at 2 West 67th Street, New York is the subject of this
He has been in the United States for two weeks having reached
this country from Vichy, France by way of Martinique. Commanded
of Tours, France, and through pull with Marechal Petain obtained
a regiment of French soldiers in the current war in the vicinity
French passports for himself and his wife who was formerly a
Miss Crosby of the British family of that name whose males have
been members of the Sherwood Forresters. She is a smart
cosmopolite and apparently the brains of the combination.
Halphin's grandfather was the founder of the French line and he
was, during World War No. 1, a kind of a liason officer with the
United States Marines at Chateau Thierry and Belleau Woods
receiving the American Medal of honor for the work he did then.
He reported confidentially that he was an active member of G2 and
before leaving France did secret service duty on the Swiss border
preventing smuggling of gold, narcotics and various luxuries.
Halphin was, and, as he put it, still is, a director of Penhoutte,
the marine construction company that built the Normandie.
He has a wide circle of acquaintences among French people and
should prove extremely valuable to us in identifying the French
men and women who are now in this country, placing them for us
Frenchman who has been wealthy and who has left France with the
as to their free French or Petain leanings. Also he is a typical
purpose of doing what he can, as he puts it, to fight for fraternity,
equality, liberty.
He is a well preserved man 55 years of age, and your reporter would
hazard the guess that he is sincere in his protestations. At
the same time he admitted that he had secured about $2,000 from
the French Government to finance his trip to the West Indies and
to the United States, which would make your reporter a bit sus-
picious surface. that his patriotism may not be all that it seems on the
- 2 -
His wife, mentioned earlier in this report, is a typical high
class Briton, who apparently wears the pants in this parti-
cular combination. She has been the MGM movie representative
in France for a number of years.
Jointly they say that any expeditionary force, British or
British-American, that might land in Brittany or in any other
part of France against Germany would get the whole-hearted
support of all Frenchmen, excepting the Alsatians and the
Gascons. As to the French women they were quite bitter saying
that on the whole the women of France have given themselves
to the Germans indiscriminately for a greater measure of the
ease the Germans have been able to provide. They were parti-
cularly bitter against those who were not the demi mondaine
and they said the latter are just as French as they ever have
been and would be good allies if an invasion were carried out.
Halphin has been a wealthy man in France by inheritance and
he is Gallic to the core, maintaining that his real desire
is to aid the United States or Canada in counterespionage
work so that he can strike a blow against Nazism and for
France. He reports that the Petain French are disgusted
with the attacks which have been levelled against Marechal
Petain who still is a national hero and the French savior
of Verdun in World War No. 1.
Both Halphin and his wife say that the peasant of France will
be the real supporter of any effectual revolution and that the
priests are the ones who know where the hidden stores of rifles,
machine guns and ammunition are secreted.
Bearing in mind the fact that Major Halphin secured $2,000
from the French Government to make his trip to Martinique via
Dakar (their freighter was convoyed by French naval vessels
from Marseilles) it would seem to this reporter that this man
may be valuable to our work in properly identifying those
French men and women who are now in this country as either
true French, de Gaulists, supporters of Petain or opportunists.
He has come here without funds although he is supposed to have
extensive estates in the West Indies valued at between $5,000,000
and $7,000,000.
It is recommended that the proper authorities be notified
immediately that he is here so that they may visit him and decide
for themselves whether he has value as one who can identify
and classify the many French refuges and others who are now
within our boundaries.
THE WHITE HOUSE
File PSF PSP Carter
WASHINGTON
July 31, 1941.
MEMORANDUM FOR THE PRESIDENT:
Jack Carter called up and said
he had expected to see you early in
the week out he is leaving today on
his vacation, returning August 18th.
He says all reports will De
handled through Dr. Henry Field in
his absence.
G.G.T.
fuerral August 8,1su,
at
/
Dear In President,
John Carth has asked
me to forward to you my Reports which
L
aight he of in trust to you. These noths
on Izan and the us.s.R. the based
m data mained from a business
man who has just wtened
John PSF Carter 5-41 Fredu
MEMORANDUM ON IRAN AND U.S.S.R.
The attached report indicates that the Nazis, who have
secured great influence in Iran, are preparing for a coup
d'état which will be successful if Hitler decides to move
against Iran. Word reaches Iran that British bombing of
German cities is weakening German morale.
Pancheha stated that about June 1, 1941 14-18 Soviet
divisions were stationed on Iranian border. Pancheha be-
lieves that the Baku and other important oil fields have been
mined and will be destroyed by the Russians, if ever necessary.
Soviet submarine fleet consists of more than 100 units with
some very modern types of craft. Our informant reports 4,000
long-range, four-motored Soviet bombers near Vladivostok
capable of flying to Osaka and Tokyo in three hours. He
gives the number of well-supplied troops in Siberian army as
400,000 - 500,000 - capable of at least one year of warfare.
August 8, 1941
MEMORANDUM ON SITUATION IN IRAN AND U.S.S.R.
This report covers Ph.D. Pancheha, special representative of
the USSECo who has just returned to the United States from Tehran.
He is of Spanish extraction, speaks Russian and Chinese fluently
and in Iran has contacted Ministers and Ambassadors of all the
countries which have representation, officially, in that State.
A summary of our talk resulted in the following conclusions
and opinions based on his firsthand observations and contacts and
they are in the order of their apparent importance:
1. That the Nazis have so bought favor in high places that
should Hitler decide to move against Iran the German military
would have complete control within a matter of twelve hours.
2. That Russia's reserves in tanks and airplanes can be
conservatively estimated at 200,000 and 35,000 to 40,000 respec-
tively and while many of the tanks are clumsy and many of the air-
planes not so efficient as those of the Nazis, their numbers have
been a definite factor in the slowing of the drive into the Soviets
by Hitler forces.
3. The average Russian fighting in this War is an entirely
different man from the soldier of the Czar in World War I. Then
they were driven to it mostly unwillingly. Today they are
fanatics in the cause of Communism and hold their lives cheaply.
4. For more than a year and a half the manufacture of the
Soviets, formerly concentrated in the Leningrad area, have gradually
been removed into the Ural area and fully 25 per cent of war manu-
facturing is now being done in the latter area.
2
5. He expressed the opinion that Japan will collapse within
five or six months and the Nazi forces will be defeatedsin Russia
within the next twelve months.
Details covering Item I include the fact that there are some
4,000 to 6,000 German "tourists" moving about in Iran. They actually
are all six-footers or taller and all are trained Nazi Army men all
specifically assigned to duties when as and if a. Persian invasion is
decided upon.
Also the Nazis have been squandering money -- always English
Pounds -- and have completely bought up Persian merchants, and pro-
fessional men -- going to great extremes in efforts along these
lines and paying ridiculous amounts for those who might be called
fifth column material.
On the surface Pancheha, who may be sent back to Iran in a
month or so and therefore should be protected, reports that Iran
is controlled economically by Russia but that such control will
count for little if the Germans decide to seek military control.
In support of his estimates of such large military mechanical
reserves Pancheha said that the Soviets have been preparing for
war with Germany for the last 22 years, and, because of their
OGPU efficiency, no information of value about what they have
been doing has been allowed to leak out to other countries.
His opinions are based on firsthand knowledge which he was
able to get when the Russians invited him to assume organizational
control of tank, plane and mechanical manufacturing effort in 1937
at what he said was a fabulous salary.
3
(In this connection Pancheha formerly represented the General
Motors Export Corporation in the Near East and Manchuria as well as
China).
This, he said, the OGPU knew.
In 1937 he was in Leningrad and Moscow at Soviet request and
at that time Russian officials told him that there were 120,000
trained aviation pilots and more than 1,000,000 parachute troops
also highly trained and that the capacity of one plant he visited
was 10 heavy tanks a week while Ossinsky, high in Soviet official
circles, told him that airplane and tank manufacturing was being
stepped up rapidly. The plant he visited and actually saw pro-
duction in was called Plant No. 76.
The Baku and other important oil fields of Russia have all
been skilfully mined and will be destroyed by the Russians if
they even come near to falling into German hands and in his own
words he said:
"Hitler will never get any Russian oil or wheat or other
foodstuffs. "
This he reports is due to the fact that as they lose ground to
the Nazis the Russians burn or otherwise destroy everything that the
Germans might be able to use.
He says that by the end of this month heavy rains will begin
to fall and the Ukraine will become an impassable quagmire which
will not be frozen solid until late in November or December. It
will mean the bogging down of Nazi Panzer divisions and supply
and communication lines and the spearheads of the Germans will be
subjected to guerrilla attacks by fanatical Russians who will fire
their guns until they are killed.
4
Pancheha reports that the submarine fleet of the Soviets is
much more than 100 units -- some good, some bad and some the last
word in naval architecture with up-to-the minute Diesel and electric
motors and new types of ammunition and torpedoes.
On the Soviet-Japanese front he called attention to the fact
that Russia has 4,000 planes including long-range, four-motored
bombers which are capable of flying to Osaka and Tokyo in three
hours. In addition, there is a self-supporting Russian army of
400,000 to 500,000 men on that front. He also said that there
is a reserve of supplies, munitions and foodstuffs that the Rus-
sians have been amassing on that front, capable of a prolonged
war of possibly two years -- One year surely.
Pancheha reports that word has been reaching Iran for some months
that British and Soviet bombings of German cities is weakening German
civilian morale, which already has been sapped by lack of many
luxuries and necessities.
He says that when the Nazi forces begin to lose definitely,
chaos will develop in such countries as Czechko-Slovakia and Poland
and throat-cuttings will be the general order, not only of German
man but of women and children.
He reports that there are from 14 to 18 Russian divisions
stationed along the Iranian border or there were when he left
Tehran seventy-two days before reaching New York early last week.
personal sugust 9,441
Dear me President
In John Carties absence
I am forwarding to you the enclosed
Memosandum on the situation in
Belgium as reportult by a Belgian
HeargField
Jan Folder Carter
August 9, 1941
5-41
MEMORANDUM ON ECONOMIC CONDITIONS IN BELGIUM
PSF
Under Nazi occupation production is considerably lower than
during 1938-1939.
Output has decreased in the textile industries. Coal is
becoming scarce - the decrease in production resulting in part
from apathy on the part of the Belgian miners, food rationing
and strikes.
Raw materials are also becoming scarce in Germany. In
Belgium new regulations cover use of copper, nickel, cobalt,
lead, tin, cadmium, mercury and magnesium.
Construction work is interrupted because of lack of materials.
Specil restrictions have been placed on cork.
Steel production at S. A. Ougree-Marihaye was 500,000 tons -
a figure slightly higher than in 1939. German syndicates are
buying interests in Belgian metallurgical industries in order
:: extend Nazi economic control.
Prices on tobacco have increased 30%. Taxes on alcoholic
beverages which were from 30-135 Francs are now 200-300 Francs.
August 8, 1941
MEMORANDUM ON ECONOMIC CONDITIONS IN BELGIUM
The linen industry is working at 70% normal output. It
is the only branch of textiles for which raw material is avail-
able.
During 1940 about 55,000 hectares were allotted to the
production of flax. The crop was poor owing to neglect during
hostilities.
The textile industry produces only 10% of its normal output.
The wool and cotton industries have been reduced to a quota
of 30% of their output during 1938. Moreover, it is prohibited
to manufacture pure woolen thread; a percentage of artificial
wool must be added.
The prices of tobacco, cigars and cigarettes have increased
30%. A tax of 2% is levied on matches. Taxes on alcoholic bev-
erages which were from 30-135 Francs are now from 200-300 Francs.
The Cockerill Works have been left untouched, but their
present activities are curtailed.
Coal is getting scarce, as a result of German requisitions.
In one colliery of the Liege area, from the output of 700 tons,
400 have been derived for such requisitions. The proportions of
output per colliery worker has decreased considerably.
The manufacture of candles with greasy content has been
prohibited.
The manufacture of bedding sheets has been prohibited.
2
The price of paper has gone up from Francs 1.60 to 3.40 per
kilo.
In April, 1940, the daily output of coal per miner was 826
kilos; it is now only 711 kilos. Special rations are given to
miners to enable them to carry on their exhausting work.
Work has been brought to a complete standstill in the Borinage
Collieries. The "Centrale des Mineurs" has declined to recognize
the syndical, unitarian federation imposed by the Germans.
Difficulties have cropped up as a result of the food ratio-
ning. The workers pointed out that the rations were insufficient
and they refused to work in the deeper galleries of the mines.
The Germans have agreed to give additional bread, meat and mar-
garine rations.
A drop of Frs. 5 per diem on all salaries in the Hainaut
Collieries has caused another conflict in the whole region.
The Germans immediately gave orders to resume work, but this
was put in force only after the salaries had been readjusted to
the former amount. The miners were sentenced to fines of 2 Marks
(25Frs.) per day during the strike for having disobeyed German
orders. As the strike lasted for one week, the fine amounted to
200 Frs. per miner, exclusive of the loss of salary.
To overcome the resistance of the miners, workers from other
regions are now being recruited.
3
Since the mines are in excellent running order, the decline
of the coal production can only be explained by the slackness of
the miners, who despite every Nazi inducement to work harder,
refuse to exert themselves in order to help the German war machine.
Even in such coal-producting districts as Charleroi and eastern
Belgium, which before the War exported coal to Germany, France
and Italy, there is unsufficient anthracite and greasy bituminous
for industries and railways.
The fact that raw materials are scarce in Germany can be
gauged by the more and more detailed regulations which Germans
in Belgium impose on workers and manufacturers, calling week by
week for new economies. One of the latest restrictions forbids
the lining of zinc in coffins and funeral caskets, except when
death is caused by certain contagious diseases. Similar regulations
call upon industrialists to refrain from using copper, nickel,
cobalt, lead, tin, cadmium, mercury and magnesium for the manu-
facture of articles and utensils for the population.
In the building industry there is now in Belgium so little
material that construction work has been interrupted, only urgent
repairs being carried out.
Cork is among products which Germany wishes to be husbanded.
It is forbidden to sell more than 100 kilos of cork sheets or of
cork waste. Germans have ordered that lengths of cork for bottles
4
should not exceed 45.0 mm. Similar regulations were imposed in
Belgium during last War.
The S. A. Ougree - Marihaye has published its balance sheet
for 1940. The plant has suffered very little damage from the
War, so far, and the activity is shown to be higher than in 1939.
The steel production reached 500,000 tons. Profits are figured
at Frs. 100,000,000 i.e. Frs. 14,000,000 less than in 1939.
Consortia of the Rhine district are buying shares of metal
enterprises in occupied Belgium in order to extend their econom-
ic control.
PSF: gan 5-41
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
"The Week in Washington"
Metropolitan 4112
Metropolitan 4113
August 20, 1941.
MEMORANDUM CONCERNING DR. MAX JORDAN.
Bill Donovan tells me that Jordan, former Berlin representative
of N.B.C., is now working in the War Department--presumably in M.I.D.
There is strong reason to believe that Jordan is and has long been a
German agent. That is said to be the opinion of American newspapermen
like Wally Deuell and Sigrid Schultz. I understand the State Department
has a similar report in its official files, in addition to one prepared
on the subject by Warren Irwin of my office. British Intelligence also
is said to believe Jordan to be a Nazi agent and is refusing him a visa
to visit London, although the War Department has been pressing Donovan
to persuade the British to let Jordan go to London. I do not wish to
get into a tangle with M.I.D. or any other agency of the Government in
this matter, but believe it advisable to have a careful check with the
British before Jordan is allowed access to any part of at information
which might be of value to the German General Staff, on which I under-
stand Jordan has a close relative (uncle).
JFC
fill mal
JOHN FRANKLIN CARTER
PSF
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
Carter
WASHINGTON, D.C.
"We, the People"
"The Week in Washington
Metropolitan 4112
Metropolitan 4113
August 27, 1941.
MEMORANDUM CONCERNING REPORTED CHANGE IN ATTITUDE BY THE KING OF
BELG IUM.
as report written early in August from Brussels to a pro-ally
Belgian in this country states that the group surrounding King Leopold
are now becoming quite pro-British. This is in marked contrast to
previous information received.
JJC
J.F.C.
fill
JOHN FRANKLIN CARTER
(Jay Franklin)
PS Farter
1210 NATIONAL PRESS BUILDING
"We, the People"
and
WASHINGTON, D.C.
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
August 27, 1941.
MEMORANDUM CONCERNING MUNSON'S REPORT ON MARTINIQUE.
I attach a brief memo. from Curtis Munson, correcting
himself on two minor details of his verbal report to you yesterday
concerning the situation in Martinique.
Jac
.F.C.
August 27, 1941
Re: Martinique - correction
Verbal Interview Of August 26th, 1941, Of President Roosevelt
with Curtis Munson Returned From Martinique and Guadeloupe:
Please submit the following answer for the one given:
The President's Question: In what condition are the French Warships
at Forte de France, Martinique and at Pointe a
Pitre, Guadeloupe?
Substitute Answer:
Sir, I am not qualified to answer this question.
The United States Navy during my stay there had
two fully competent Naval observers Commander
Blankenslip and Major of Marines, Muncie. The
Navy Department undoubtedly have the answer to
this question in complete detail.
*
*
*
*
*
The President's Question: Did you see the aeroplanes about which there has
been so much discussion and in what condition
were they?
Answer:
No, sir, only at a great distance; but I under-
stood from the U. S. Naval observer that he
inspected them and the wings and propellers had
been removed and stored.
Substitute:
Statement correct regarding the wings but the
propellers have not been removed.
Add:
The wings are stored at a considerable distance
from the fusilages and as the planes are land planes
and as there is no air field they would have to be
transported to the Bearn (aircraft cerrier) before
they could take off. Assembly of the planes and their
transportation to the Bearn could not possibly escape
detection.
CBM
Jan Carter Folder 5-41
"The Week in Washington And
JOHN FRANKLIN CARTER
(Jay Franklin)
PSF
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
Metropolitan 4113
September 2, 1941.
MEMORANDUM OF CONVERSATION WITH COL. SOSTHENES BEHN (INT. T. & E.)
CONCERNING CONDITIONS IN AXIS EUROPE.
I saw Col. Behn on August 28, subsequent to his conversations
with the President, Secretary Hull, etc., but he assured me that this
discussion contained additional oberrations which he had not referred
to in his earlier interviews.
Col. Behn found the Germans ready to do business with him on
either the purchase of his factories in Germany or of the Spanish
Telephone Co. The latter was vetoed by the State Department. The
former transaction was virtually completed when Goering forbade the
transfer of the gold via Switzerland on the ground that America would
soon be in the war and that Germany could then confiscate the property
without paying for it.
Behn said that the Germans were the only people in Europe who
expected America to enter the war and the only people in Europe who
doubted that Germany would win the war.
He said that there was no real shortage of food in Germany and
that supplies of raw materials (other than lubricants, cotton and a few
strategic minerals) were ample to enable Germany to continue fighting
for three or five years.
Col Behn said that he had grave doubts that Russia would con-
tinue to fight but he also remarked that Sir Stafford Cripps had told
him in London, when Germany attacked Russia, that Hitler would win
inside four weeks and that the Stalin regime would collapse. My own
inclination is not to regard Behn as an expert on Soviet affairs.
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
"The Week in Washington"
Metropolitan 4112
Metropolitan 4113
- 2 -
Colonel Behn said that Petain was the only Frenchman who
thought America might enter the war and that Germany might fail,
and that Salazar of Portugal had a similar attitude. Franco was
more on the fence. Behn reported that Petain was in vigorous good
health and intellectual power and he urged strongly that America
support his position (and Franco's) to the extent of seeing that they
got food and vitamins. This he regarded as the cardinal point in
split
a drive to hold Latin Europe from the Axis.
Behn was impressed by the fact that Germany had mobilized over
ten million men, leading to a labor shortage which was being met by
scouring the Continent for skilled labor. Germany was rerected
number of 000-kilowatt reduction plants from for aluminum, away
from the R.A.F. bombing-radius, and was still producing about 3,000
airplanes a month.
Behn's prognosis of events was that the U.S. and Great Britain
would & chieve air-supremecy about the end of 1942, "soften" up Germany
and the occupied regions and then that an A.E.F. of panzer-units should
land, either in North Africa or in France, to clean up the Nazis. He
feared that delay in entering the war would leave England weaker and
more despondent, ditto France. Behn expressed his regret that apparent
Japanese willingness to back down in the Pacific had destroyed the
chance that America might enter the war "by the back door".
Jos.
J.F.C.
P.S. Behn added that the British Army in the Near East was still
5
too weak to take the offensive and might find it difficult to withstand
a Nazi drive overland through Turkey.
PSF Jun Flacter 5-41
THE WHITE HOUSE
WASHINGTON
September 6, 1941
MEMORANDUM FOR
J. F. CARTER
I think you can properly
take this up in confidence with
Floyd Odlum who will be in
charge of the distribution of
contracts.
F. D. R.
Enclosure
Memo re "The Defense Sub-Contracting
Problem" from John Franklin Carter,
9/5/41 enclsoing memoranda from Shreve
Badger of the OPM re same.
JOHN FRANKLIN CARTER
PSF
fay carter folder
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
October 3, 1941.
EMORANDUM CONCERNING CONDITIONS IN SOUTH AFRICA.
The attached memorandum from a correspondent in South Africa is
too discursive for great utility. It contains the following items of
interest:
1) Many Italian prisoners of war in South Africa express eager-
ness to enlist in the war against Hitler but are not allowed to do so;
2) There has been & bad reaction in South Africa against Harry
Luce's article "The American Century", reprinted in "Reader's Digest".
"It sounds like Mitler talking from behind a distored democratic mask".
3) Attitude towards Russia is rapidly changing.
gac.
J.F.C.
August 15, 1941
MEMORANDUM FROM CAPE TOWN, SOUTH AFRICA
Well, so Churchill and Roosevelt have met on the "Battlefield
of the Atlantic" and have had a little talk. The results seem
to have caused a reasonable stir, but me thinks the program is
somewhat negative, and negative programs seldom make good prop-
aganda. However, the most important point seems to be that we
have a program to submit to little Adolf should he attempt a
Peace Offensive. "Those are our minimum demands, we'll start
right there."
Since last I wrote I have had a month's training in the Trans-
vall, with out student Training Corps. I am a full Lieut., with
two "pip", and a reasonably important person, as suits my present
bulk. The students had a marvellous time, and were put through
it well and truly, but it soom became obvious that the officers
were not wanted and that nobody quite knew what to do with them,
as the lads were under instructors the whole trip. We were rather
left out in the cold. Nearby were some thirty thousand (more by
the time we left) Italiano prisoners, all looking well and happy
but bored to distraction. We visited their camp, but were not
allowed access, though we were permitted to tour the outside of
the camp. They had erected a very fine concrete calvary, a semi-
circle about ten feet high, with a crucifix set at the top, and
it was blessed just before we left. I presume they will have
to occupy the rest of their time in prayer, as there seem little
else to do. What was interesting was that quite a number of the
Italians asked to join out army to smash up Hitler and free
Italy from the Germans. Unluckily this cannot be, as I am sure
the Italians are excellent fighters when they feel they have
2
something worth fighting for.
Several excellent displays were arranged for us, night fight-
ing with tracer bullets, against a cardboard enemy, and a good
display of armoured cars. When war broke out we ordered large
numbers of these from America, who could not fulfil the order,
but sent us Ford engines instead. We set to and started building
our own. There have been three models, and it is interesting to
see the amazing improvement made in a matter of two years. We
make up our own tyres out here, and have developed an excellent
bullet-proof type which works amazingly well, sponge rubber
presumably. The king of Greece has been out here and has been
out here and has been very well received.
From time to time we have wounded men from Crete through
here, all of them agree that we should have left the men on the
island and not tried to evacuate them in the Dunkirk tradition.
This is in accord with the latest rumour (via N.Y.) that those
who were left behing have succeeded in retaking all but the
towns of Crete.
I listened to a man telling his experiences in the retreat
from Salonika, last evening. Apparently he was about the last
person left there with the Germans five miles out, shelling and
bombing hard. He collected an old English woman and attempted
to get away in a caique but was ordered out of it again by some
Greek troops who arrived in retreat. He then mended an army
lorry, caught up with the rest of the convoy which was going
along a precipitous mountain road, and want on towards Athens.
Suddenly the lorry (truck?) shot over the edge of the road, and
3
and when he recovered the truck was on his one side. The old
lady and the driver were o.k., but two soldiers were dead. The
next {ruck sent down a rescue party, and with the Germans hot on
the trail, they pulled him from under the truck by main force,
and carried him up the mountain in a blanket. At Athens he
was put on to a hospital ship, and all his ribs were found to
be broken, his feet crushed and the other knee dislocated. After
three months he has been given a base-job down here.
We have been wondering who inspired an article which ap-
peared in the June number of the Readers' Digest. It is cal-
led something like "The American Century", and the idea seems
to be that the U.S. should take control of the world, impose
her own particular brands of justice and freedom on everybody
else, whether they like it or not, and reap the commercial bene-
fits. It sounds like Hitler talking from behind a distorted dem-
ocratic mask, and hardly agrees with clause no 1. of the Roose-
velt-Churchill pronouncement, which mentions no national ag-
grandisement. It is not surprising that the article came to
be written, but it is surprising that the Digest should pick it
out for greater publicity, and one wonders what percentage of
the American view such an article would represent. Britain
doesn't mind being put into the gladiatorial ring and supplied
with tridents and nets from the interested spectators, but I
presume she prefers her own rather irritating form of freedom
to anybody else's, and prefers to evolve along her own rather
one-track lines.
4
Russia came as a surprise, and it was a relief to most of
us that Hess' little plan to range England on the side of Ger-
man liberty against the big, bad Bolshevist wolf, did not even
misfire, it just failed to ignite. There was an awkward moment
waiting to see the reactions of Britain and America, but now that
strikes in the States have actually increased since the USSR
came in, I think we can guess who is really behind them, and I
think that America realises that the Bolshy menace (with Trotsky
out of the way) is hardly likely to affect American big business
for a decade or SO. Trotsky seems to have been the internationalist,
while Stalin was all for building a brighter and better Russia.
Things are fairly quiet politically. The Republicans here
are busy fighting among themselves. Pirow wants a dictatorship
(as his name suggest he is originally Prussian) and the Rev.
Malan wants a sort of Christian (Calvinist) National Republic
in which English speakers will be tolerated, and immigrants de-
barred unless they are Calvinists. They should try out a Bri-
tish dictatorship (Cromwellian style) and it will probably last
about as long.
PSF Carter Folder 5-41
THE WHITE HOUSE
WASHINGTON
October 7, 1941
MEMORANDUM FOR JACK CARTER:
Will you talk to Marshall
Field and tell him the story about
Henry Field and try to get the latter's
papers out of the Museum?
F.D.R.
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
Metropolitan 4113
"The urgent Week in Washington"
October 3, 1941.
MEMORANDUM CONCERNING DR. HENRY FIELD AND THE FIELD MUSEUM.
Dr. Henry Field, who has been working in the Library of Congress
under leave of absence from the Field Museum of Chicago without paxy,
has abruptly been notofied that he has been dismissed from the Museum.
The letter is a "stinker", written with the aid of a good lawyer
(probably Silas Strawn), and implies that Henry Field is a bad anthro-
pologist and is guilty of some misconduct.
Field tells me that this is the work of his cousin Stanley Field,
a Black Republican and bitter-end America Firster, in an effort to
discredit him professionally and cripple his work for the Government.
More serious at the moment is the Auseum's demand that Field re-
turn to the Museum all of his records, etc., which are being currently
utilized by 0.1.1. and Bill Donovan's office. I have advised Menry
Field under no circumstances to return these documents and data,
Field tells me that there are also three filing cabinets and
forty-eight drawers of data similar to that being currently utilized)
st the Tuseum--representing his work in the Near and ..iddle East. He
feels and I agree that this data too should be available here for the
purposes of national defense.
(n anthorize me to doso),
My suggestion is that you ask Marshall Field, ^ who is a trustee
of the Museum, to arrange promptly to have this other data forwarded to
Bill Donovan's office in the name of national defense, with the assurance
that all material which is unquestionably that of the Museum shall be
promptly returned and that the files themselves will ha also be returned
at the termination of their usefulness in the crisis.
offe.
Jan Carter Folder
THE WHITE HOUSE
WASHINGTON
PSF
October 7, 1941.
MEMORANDUM FOR JACK CARTER:
You might take this up with
the State Department, Immigration Service,
and Norman Davis.
P.D.R.
Rl: Memorandum on measures to supervise
refugees in the U.S. 10/3/41
fullowing
PSF
JOHN FRANKLIN CARTER
(Jay Franklin)
carter
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
October 8, 1941.
ON TREATMENT OF HOLES IN THE SOVIET UNION.
Herewith attached is a memorandum concerning the treatment of
Poles in the Soviet Union. In distinction from the earlier memorandum
from the same source of information, this seens to pertain to political
rather than to religious issues.
U.F.C.
October 7, 1941
MEMORANDUM ON POLES IN U.S.S.R.
The following notes have been received from the same
confidential source which supplied information regarding the
Polish labor camps in Soviet Central Asia.
1. It is highly recommended that relief to the Poles in
the U.S.S.R. should be under a commission which is allied to
be in part of the U.S. Red Cross. It is emphasized that a
separate organization should be created.
2. About ten days ago it was reported that all Polish
citizens have not yet been released. For example, the Russians
have refused to release many Polish lawyers, Justices of the
Peace and police officers, also some Jews and all members of
the Ukrainian House of Deputies. The reason given for re-
fusing to release the Ukrainians 1s that they are stated by
the Russians to be pro-German.
PSF
5-41
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
October 21, 1941.
MEMORATIDUM ON PROPOSALS FOR DEALING ,ITH THE ALIEN REFUGES PROBLE!.
1 have discussed the proposed plan to persuade the Red Cross
to concern itself locally with the alien refugee problem with the
following: Attorney-General Biddle and
Dinxock of the Duigration Service; Adolph Berle, Sunner Welles and
Breck Long in the State Department; Norman Davis of the Red Cross and
--ut the suggestion of Davis and Long--Paul McMutt.
1) AS soon us Justice discovered that this was neither a raid
on their funds and Jurisdiction nor a reflection on their efficiency,
they assumed a cooperative attitude.
2) The State Department people generally agreed as to the value
of bringing the Red Cross in for its symbolic value but questioned whe-
ther the avorare Red Cross Chapter leaders knew much about their own
CO unities; Norman Davis was helpful and cooperative and suggested that
the best step would be to ask laul -clutt to use his security and wel-
fare set-up us a trellis throughout the nation and 08 a liaison here in
Washington, .r. Davis suid that he wonde respond a "firmatively to any
request from clutt, If solected by you us arent in this matter, for the
operation of the Red Cross throughout the nation.
..) hall +-chutt : reached tontatively, because I lacked Instruc-
tions from you, int 1 than it It would save time to see him so I outlined
the to M. No sourted anzious to cooperate and said he would
Ciscuss With his aides at their regular meeting next Thursday.
I sold that I thought it would be important even as CL facade and symbol,
for something to be done promptly through his set-up and the Red Cross,
in is nore to lead off the growth of anti-alionism. Re agreed. yr....
JOHN FRANKLIN CARTER
(Jay Franklin)
ps carter
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
October 81, 194d.
PARSYAL FIELD'S IEW JAIER IN CHICAGO.
Gael Sullivan tells ne that he and Ed Kelly are rather dis-
turbed by the developing set-up of Marshall Field's new Chicago morning
newspaper. He says that it looks to them as though Field were being
taken for a ride by Jim Farley and Jesse Jones. Sillinan Evens, the
publisher, is a Jones friend \formerly with that staunch liberal,
Col. anon Carter of Fort North, Texus), and the executives who are
being assembled are mainly second-string Hearst men who do not know
Chicago, The washington Dureau is to be put in charge of Bascom
Timons, who runs a sort of wholesale washington correspondence busi-
ness, is not & Chicagoan and is definitely & Jack Garner-Jesse Jones
supporter.
while Sullivan and Kelly have their own interests at stake,
these criticisms seen to me to be pretty forcible and I thought that
you night he interested to know of the situation as Sullivan sees it.
Sullivan sads that the C.I.O. in Chicago is not backing the new
paper, because they believe that Evans is anti-labor, a potential Ku
Kluxer and that not even the American Newspaper Guild will have a
standing on the paper. Wise public relations would have takena care
of this sort of thing in advance. It would be a pity to have the ven-
ture misfire through Field's inexperience in selecting staff and
determining policies, especially us it is generally believed throughout
the country that you encouraged him to CO into the Chicago newspaper
venture to offset the Tribune.
J.F.C.
Jre
A
3
JOHN FRANKLIN CARTER
USF : Jay Carter 5-41 Folder
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
Bx122
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
October 22, 1941.
CONCERNING JAPANESE SITUATION ON THE WEST COAST.
Herewith attached is a preliminary report from Curtis Munson,
of this project, concerning the Japanese situation on the West Coast.
The essence of what he has to report is that, to date, he has
found no evidence which would indicate that there is danger of wide-
spread anti-american activities among this population group. He feels
that the Japanese are more in danger from the whites than the other
way around. His letter, however, is worth reading in terms of itself.
Jr.
T.F.C.
Oct 19/41
Dear John,
hunday
I am not going into details in this letter, but will try to give you an overall
picture so far.
I am finished in the Frisco area and am planning to go to Seattle Monday.
At the end of that week will go to Los Angeles and should clean up there in the
allotted time. Have not yet heard from Dennison or Irwin but there may be some-
thing for me from Dennison at the St. Francis hotel in Frisco when I pass through
there monday morning.
Contacted F.B.I. and O,N.I. The latter have done a tremenduous lot of
detailed work for the last ten years in this district. I will not go into it all.
I have taken personal check samples here ond there on farming districts, fishing
districts and city districts,- sort of dip samples on my own hook,- as a first
hand check on what O.N.I. have told me. All checks out well as far as the following
general picture is concearned.
Take the Shinto religion, Buddist religion, Christian religion, ancestor
worship, family worship, all tied back to sun worship of which the Emperor of
Japan is the living titular head on earth; add to this the Oriental mind, western
business culture, innate politeness and fear; add also the fact that each individual
Japaneese is playing all by himself in a field the size of the Yale Bowl with his
own conscience as unpire, carrying the ball with as much competitive spirit as
an American, the while the stands- whom he wishes to please- are filled to
overflowing with his departed ancestors each of whom is vitally interested and
sitting in judgement on his personal gyrations; add again a number of other things
of varying importance,- such as the fact that the Japs are the greatest joiners
in the world and have associations for everything to join fron "Fixing flowers
Properly in a Bowl" to "War RElief for Japaneese Soldiers in China". You then
have a picture 80 complex to western minds that it cannon be solved by facts and
pencil. When it is all added up no westener will say on the coast here how any
individual Japaneese will act under given circumstances, how reliable he is,
nor what the mass of them will do.
If I now turn around and say that the Japaneese question on the coast is
simple you will think I am Nuts. However I believe it is. You can catch your answer
another way.
I will not go into the details of this other way. My conclusions I am willing &
to bet on Hhwever. I believe they are pretty sure..
In the first place there are not so many people of Japaneese descent in the
U.S. that in an emergency they could not all be thrown into a concentration
camp in 48 hours. Of course you might get a few Chinamen too because they sort
of look alike. But the looks are a great aid to rounding them up and in keeping
them away from sabotage or other troublesome pastimes.
We do not want to throw a lot of American citizens into a concentration camp
of course, and especially as the almost unamanious verdict is that in case of
war they will keep quiet, very quiet. There will probably be some sabotage by
paid Japaneese agents and the odd fanatical Jap, but the bulk of these people
will be quiet because in addition to being quite contented with the American
Way of life, they know they are 'in a spot'.
The interesting thing is that people, from Honolulu tell me here That in
Honolulu theyunderstand the Jap and do not fear him. In Honolulu the Jap is
much closer and a part of their life than here. It looks as though the chief suspicion
on of the Jap here is because they do not know him personally and he is afraid
of the white. He has a little inferiority complex when talking to them. This
makes him seem cautious and subtile. This makes every western mind in the last
analysis hedge on their really fixed opinion of them5 Japs. Every one here
says, except a very few who have an axe to grind, that they have no fear of the Japs
that the Japs are very good citizens and all people like them with. very few
exceptions. Then when they are all through saying there is absolutely no danger
and praising the Japs here with true affection, they always hedge as a last
word and say "but you cannot understand or predict the oriental mind". This
is evidently not so in Honolulu where they know them better and yet they are
just as oriental there,
It is hard to explain all this in a hurried letter, it is so complicated.
You must take me on faith that I feel sure of myself on this one. If I were sitting
talking to you you would see that in spite of the complications (which I want you
to feel) the picture is pretty simple and clear.
MY CONCLUSIONS to DATE
(can later satisfy you that I have logically sifted all the tripe. It would take
pages and hours of arraingement of material now to explain on paper).
The Japaneese, citizen or alien, will be quiet whether they sympathize with
Japan or not. Undoubtedly by far the largest bulk- say 90%,- like our way of
life best.
The Japs here, especially the citizen is straining every nerve th show their
loyalty to U.S.
The Japs here are in more danger from us than we from them. On this score
however the Californian is pretty fond of the Jap. The Jap has been an excellent
citizen and there is practically no conflict on the labor front or on the business
fromt.
The odd Jap may be beaten up by irresponsible toughs. A call for extra
deputies in certain districts where needed should handle the situation easily.
They like and t5ust the Jap out here far better than the east thinks they do.
The Jap has been used as a P litical football for years because he could not stroke
back politically and the rest of the country has been fed false political trape.
The Jap is an extremely good citizen and it is only because he is a stranger to us $
that we mistrust him.
To complete the survey someone should probably go to Honululu , though I think
I on can the give you the picture there sitting right in my chair here
ground is believing. The navy has done a vast amount of work there
However, seeing
%
and from what I can ascertain, I believe it has things quite in hand.
Honoluluians from there say the Jap is probably 98% loyal to the U.S. and that those
who are not, the Navy and F,B.I. has ticketed.
Yours truly
Cutis Invison
JOHN FRANKLIN CARTER
PSF
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
Farth
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
October 27, 1941.
MEMORANDUM ON INTERVIEW WITH ARMND LOWENGARD, REGARDING CONDITIONS
IN FRANCE (as of two weeks ago)
Lowengard is connected with Duveen Bros (art dealers) and is
a French subject (Jewish father, British mother). Mis statements
are not guaranteed, but are believed to be accurate. He reports that:
1) Weygand expects Germany to be defeated and is anti-German;
2) Darlan and Weygand are bitter personal enemées;
3) " new French system of pobitical resistance is being organize
for both sections of France, by conservatives and liberal democrats;
4) Contact point for this croup is Louis de Costier, Villa Gae
Logis, Brot, Alpes Maritimes, France;
5) Arms are being stored for use at right moment;
6) Shooting of hostages by Germans ends all hope of "collaboration"
7) France faces famine due to Nazi seizures of food;
8) Serious rubber shortage in Germany;
9) Plenty of food in North Africa and ships are carrying it to
France where it is divided: 70% to the Germans; 12,6 to Italy and 18,3 to
France--except that the Germens take all mutton;
10) French transportation system approaching breakdown due to
luck of lubricants and disintegration of equipment.
Jrc.
France
October 24, 1941.
Walker
The report submitted is based on an interview with
Armand Lowengard, head of the French-American Art collecting
house of Duveen Bros., 730 Fifth Avenue , New York. He has
just returned this week from Portugal via the Clipper and has
talked to no one but the British Embassy in Lisbon.
Chief points in the interview which he asked be kept
confidential because of the danger to individuals mentioned were;
1. General Weigand believes that the British will
defeat Germany eventually and only with full aid from the United
States. Also Weigand is privately anti-Germen. And he has a
good effect on Marechal Petain whenever the two visit.
2. Darlan and Weigand are bitter enemies but unfortu-
nately Darlan has a French Navy man , one Emile Fernand, at
Weigand's elbow and this man is hampering the General's plans and
actual movements.
3. A new French political organization has been in
process of organization in both occupied and unoccupied France which
is composed of conservatives and liberal democrats. It has as
itsaims a unification of various other groups like the De Caulists
and former French officers who do not like De Gaul but are
willing to go along to strike a blow for France, and similar
parties in Belgium, Holland and the other Nazi-occupied countries
of Europe.
4. It is & party of organized resistance, so far
without a name, and high in its counsels are General de la
Lawrenciers, former head of the French Cavalry School, who lives
in a villa outside of Vichy, France, Louis Marin, formerly a member
of the House of Parliament and the Minister of Pensions in the
last French Cabinet, Herriot and General Davet who was a commanding
officer in the Aviation Corps of the French Army. This man may
be contacted with discretion Louis de Costier, Villa Gae Logis,
Brot, Alps Maritimes, France. He may be trusted. Davet was
characterized as the brainiest man of the lot by Lowengard.
5. The new group has large stores of arms safely hidden
in safe localities which will be evailable at the right time.
6. The shooting of French hostages in reprisal for the
killing of Nazi officers, he characterized as regrettable but a
good thing for the morale of France and also because these incident S
are helping to prove to Great Brisain and the United States that
there are plenty of Frenchmen who resent the Cermans and will
continue to resist them no matter what the cost.
7.
France faces real famine conditions after the end of
France 2.
the close of the coming winter. There are shortages of all lux-
uries now and many staples but there is enough food to carry
through the winter. There is no wine as the Nazis have con-
fiscated all champagne for drinking and have taken all other wines
for conversion into alcohol.
8. German officers admit that there is a bad shortage of
rubber in Germany and proof of this is found in the fact that
rubber for tires for bicycles is now unobtainable in France the
Nazis having stripped France of this commodity.
9. In North Africa there is plenty of food and privately
owned and operated ships are carrying a constant supply to France of
green vegetables, fruits and sheep to France. Of these supplies
the Germans are confiscating all of the mutton and 70 per cent of
the remainder. Nearly 12 per cent is diverted to Italy and
France actually gets about 18 per cent.
Whilt Lowengard said that there would be no real famine
conditions in France until the end of this winter he said that
the food situation is becoming more serious all the time. There
is constantly less and less food obtainable.
The Germans take
all of the grain and potato crops and then cleverly reship part
of these crops back to France to cultivate the belief among the
French peasants that they are saving them from starving.
He said that he believes none of the peasants are fooled
at all by this and gives as proof that the peasants are refusing
to grow crops for German confiscation prefering to starve
France, he reports, is suffering from a badly maintained
transportation system, the reilroads being unable to obtain
lubricating oils and greases and most of the equipment --
particularly brakes -- being allowed to disintegrate. He looks
for serious accidents as the result.
Lowengard is 8 native Frenchman whose father was a French
Jew and whose mother is British and now living with all of his
near relatives in England. He has no near relatives in any of
the Nazi-occupied zones and seems sincere in his desire to
do anything to aid France. He particularly emphasized the
importance of the formation of the new party of resistance and
suggested that General Davet be contacted by our proper authorities.
He said that he would be willing to cooperate personally
with any department in the United States Government.
He escaped from France in 8. all boat to Northern Africa
and ultimately to Gibralter, thence to Portugal and Lisbon and
finally by Clipper to the United States.
He said finally that the last two months in France have
seen the development of the new group and seems to think that it
eventually will prove of assistance in routing the Nazis back to
their Fatherland.
#####
for
pack Earter Fredu
5-41
THE WHITE HOUSE
WASHINGTON
October 28, 1941
MEMORANDUM FOR JACK CARTER:
That matter ought to be
taken up by Mr. Badger with Mr. Odlum.
F.D.R.
Homo of J.P.O. to FDR 10/27 re possi-
317107 of studying Tritish technique
1n Cofense contracts.
PSF: Carter
JOHN FRANKLIN CARTER
(Jay Franklin)
1210 NATIONAL PRESS BUILDING
WASHINGTON, D. C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
October 29, 1941.
MATORANDUM ON JAPANESE POPULATION IN WESTERN STATES AND FAMAII (INTERIM)
Subsequent reports from Curtis Munson still confirm the general
picture of non-alarmism already reported to you. Munson is leaving
for Hawaii on November 6, to complete the study.
I must be in New York City until Monday next (November 3). I
can he reached at the Ritz-Carlton Hotel. In my absence, Henry Field
is in charge of the Washington end of the work.
gse.
.F.C.
JOHN FRANKLIN CARTER
(Jay Franklin)
ps.
1210 NATIONAL PRESS BUILDING
WASHINGTON, D.C.
"We, the People"
Metropolitan 4112
"The Week in Washington"
Metropolitan 4113
October 29, 1941.
ON SAUDI ARRIA:
Attached herewith is a memorandum on conditions in Saudi
arabia based on an interview with a reliable informant (American)
recently returned from there.
The gist of the report is that Ibn Saud is pretty sore over
not getting the desired subsidy of $10,000,000. Ibn Saud is :lso
listening to pro-Axis advisers.
Jr
.F.C.
MEMORANDUM ON SAUDI ARABIA
October 28, 1941
October 27, 1941
MEMORANDUM ON SAUDI ARABIA
Our informant has lived for a number of years in Jidda
so that his observations are reliable.
Ibn Saud is in much better health than he has been for
the past five years. He has been hopeful of receiving financial
assistance from the United States. His sons Saud and Faisal are
both loyal to him.
Ibn Saud is under no threat internally since absolute
peace prevails throughout his Kingdom. Even during the revolt
in Iraq led by Rashid Ali al Gailani there was no visible unrest
among the tribesmen.
Our informant believes that should Ibn Saud die there
would be no revolt since his eldest son, the present Amir Saud,
would be King - perhaps for the better.
Within the past six months the King has become entirely
pro-British whereas before he remained neutral but he was always
anti-Axis in sympathy. He refuses to allow anything to be said
against Britain. For example, his former adviser, Captain H.
St. J. Philby criticized some of the broadcasts from the BBC as
well as phases of British policy. Philby was ordered out of
the palace at Riyadh and sent to Jidda where he again got into
a controversy over British policy with the British Minister, who
requested him to leave the Legation. Philby was sent by boat
to India, where he was arrested and trans-shipped to Liverpool
for detention.
2
Van der Meulen, who 1s the recently appointed Dutch
Minister in Jidda, was anxious for an appointment to see the
King in Riyadh. His audience was refused because the King
would then have to permit the Italian representatives to come
to see him. This he refuses to do.
Pro-Axis Advisers.-The chief pro-Axis adviser of the
King is Khalid Bey al Gargani, otherwise known as Walid al Hud.
A political refugee from Tripoli, he has been in Saudi Arabia
during the past eight or nine years. He is pro-Axis for personal
reasons. As head of a large family in Tripoli, he fought against
the Italians but was defeated and escaped to Egypt and on to
Riyadh. In 1939 Ibn Saud sent him to an International Congress
in France, at the conclusion of which on his own responsibility
he went to see Hitler in Berchtesgaden about his foreign prop-
erty in Tripoli. He asked Hitler to request Mussolini to restore
his property to him. Hitler agreed to this proposal. In ad-
dition, Khalid Bey negotiated a trade agreement with Germany and
Saudi Arabia for automotive equipment,arms, and ammunition for
the sum of 50,000,000 dollars which was to be repaid in gold
within ten years. These negotiations were conducted entirely
on his own iniative without the sanction of the Saudi Arabian
Government. Khalid Bey returned to Riyadh and pressed the King
to accept. In August, 1939, ten Bussing trucks (five ton) arrived
as the first consignment to Jidda. Nothing has arrived since
3
Yusuf Yasin, who has held numerous posts in the
government, is now acting as King's Councillor. An ardent
Moslem and therefore a hater of all Christmans, he is also
decidedly anti-foreign. He frequently advises the King on
the desirability of ejecting all foreigners from his Kingdom.
Internal Subsidies, -The King gives subsidies to
approximately 500,000 people.
Everyday the King feeds 30,000 people in Riyadh.
Since this is a great drain on his resources, he hopes to
cut down the import of staples through a large agricultural
development at Al Kharj, fifty miles south of his capital.
Here by means of three large cisterns and irrigation canals
10,000 acres are under cultivation. The main crops are wheat,
vegetables, and fruit trees.
9 Imports.-Through the assistance of the British Gov-
ernment food has been sent to Jidda and to Ras Tanura. Our
informant states that the Government of Saudi Arabia possesses
at least one year's supply of staple foods such as: rice,
sugar, ghee, coffee, cardamon, and flour.
The following imports were received during the com-
bined years of 1939 and 1940:
Sugar
15,000 tons
Rice
40,000 tons
Wheat
8,000 tons
Dates
0
Cotton goods
225,000,000 yards
4
Foreign Loans.-During 1941 the British Government has
loaned to the King the sum of $5,400,000 dollars and the Cali-
fornia Arabian Standard 011 Company has also loaned him $3,000,000
in cash and petroleum supplies to the approximate value of
$500,000.
Roads.-There are no asphalt roads in Saudi Arabia with
the exception of the new road now nearing completion from Jidda
to Mecca, a distance of fifty miles. This road is about 75%
completed and should be in operation in January, 1942, since in
September they had only fifteen more miles to finish.
The road from Jidda to Riyadh, a distance of 1,000 kms.,
takes about three days and is impassable following heavy rain.
Transportation.- 1. 300 new heavy ford trucks were
available at Al Khobar in September, 1941. This small town is
on the sea about seven kilometers from Dhahram.
2. 40 - 50 Federal trucks.
3. 25 White trucks.
4. About 200 Ford 21 and 5 ton trucks. Only a few
of these are in good condition.
Aviation.- 1. Three "Wapiti" British planes
2. Three Italian Caproni bombers
3. One small French plane capable of carrying one passenger.
The King has never flown and says that he will never
go up in an airplane.
5
Port of Jidda.-There has been no construction work
since 1939. Trade has almost stopped since the beginning of
the War. Prior to September, 1939, steamers of the Italian
and British-Egyptian (Khedival) Lines called each week. Since
the beginning of the War the British-Egyptian Liners stop once
every two weeks.
011.-At present oil production of the three main sources
of supply àre as follows:
1. Dhahram, known as "Damam Dome", is producing 10,000
barrels per day. The thirty-two wells could easily produce ten
times this amount.
2. Abu Hadriya which lies 100 miles to the north has
only one well and no pipe-line. Production prospects appear ex-
cellent since there is an abundance of this same high grade oil.
3. Abqaiq, thirty-five miles southwest of Dhahram,
also has only one well although a second is now being drilled.
The prospects also look excellent.
Radio.-Throughout Saudi Arabia there are perhaps 500
radio sets. There are about fifteen short-wave sets in use
throughout Saudi Arabia. There are some in storage which are
not even in use so that the King does not need any further
radio sets. The Arabs despise both the Italians and the Jews.
Ibn Saud would appreciate a special program addressed to him
and to his people. He is deeply interested in news by radio
and maintains a constant staff of listeners who summarize the
6
news from Berlin, Rome and B.B.C. Three or four times each
day special readers come before the King to give him the
latest World News. Even when he is on a hunting trip, he
insists on having summaries of World News read to him at
intervals.
The King is believed not to listen to the radio him-
self but the Amir Saud listens regularly.
The Arabs listen to Berlin, Rome and B.B.C. Up to
August 15, 1941, our informant had never heard a mention of
any United States stations broadcasting in Apabic.
The Arabs are anti-British and anti-Italian. The
main basis for this antipathy to the British is the Palestine
conflict.
Ali Reza is now studying at the University of California
and can be reached through the California Arabian Standard 011
Company. It might be advisable to consult with him regarding
radio. programs to Saudi Arabia.
Cable and Radio Communications.- "Cable and Wireless"
maintain a cable from Jidda to Port Sudan. When the cable is
out of commission the ancient Marconi transmitter is used for
communication. There is another old fashioned transmitter in
Riyadh which is used for communication to Baghdad. Until the
Italian Legation was requested to leave Iraq in 1941, many
communications from Germany were sent to and from Baghdad via
Riyadh.
7
Pilgrims. -During 1940 the British Government brought
some pilgrims from India and the Dutch East Indies. They do
not expect any pilgrims during 1941 with the exception of a
few who will come be chartered plane from Cairo.
The King expects to make the pilgrimage to Medina
probably in December or early in January.
U.S. Translator. -Our informant states that William
Farrell proved to be an expert translator in Arabic for Bert
Fish when he had an audience with the King.