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OCR Page 1 of 2DIARY
Book 612
February 25 - 28, 1943
- A -
Book Page
Attorney General
Salary of official or employee of United States
Government on leave with pay from private employment:
General Counsel's opinion - 2/26/43
612 123
- 3 -
Babcock, H. 1. (Chairman of Board of Trustees, Cornell Univ.)
See Financing, Gover ment: Var Savings Bonds
(College Reunions)
Board of Economic Warfare
Minutes of meeting 2/25/43
76
a) Discussion of merchant shipping service to other
American republics
- 0 -
Coast Guard
HMJr to be provided with new "Lodestar" plane prior to
March 1 - 2/26/43
122
College Reunions
See Financing, Government: War Savings Bonds
Correspondence
Mrs. Forbush's mail report - 2/26/43
125
- D -
Deferments, Military
Lindow, Wesley: Six months' request - 2/27/43
220
- 7 -
Financing, Government
Non-defense Expenditures:
Senator Nye's statement concerning purchase by Procurement
Division of railroad cars for hospital and medical
purposes refuted by Bell - 2/25/43
69
Meeting on February 25, 1943 - 2/27/43
188
a) Discussion of
1) Fars Credit Administration
2) National Resources Planning Board
3) Home Owners' Loan Corporation
Tax Anticipation Notes: Availability at all banks discussed
by HMJr and Heffelfinger - 2/25/43
16
Federal Reserve operations in Government securities -
2/27/43
186
Regraded Unclassif
- - (Continued)
Book Page
Financing, Government (Continued)
Var Savings Bonds:
Reorganisation:
Sproul-HMJr conversation - 2/25/43
612
18
a) Clarification of Treasury's new plan attempted
by HMJr
1) Reported to Buffington and Gamble by HMJr
25
C. 8. Young-HMJr conversation - 2/25/43
29
a) Sproul explanation repeated by HMJr
1) Young and Sproul conversations repeated to
Bell, Graves, Gamble, Buffington, Odegard,
and Miss Elliott - 2/25/43
42
2) Clarifying telegram sent to presidents of
all Federal Reserve Banks.
50
Promotional Activities: Amounts available - 2/25/43
67
Conference; present: HMJr, Bell, Graves, Buffington,
Odegard, and Miss Elliott - 2/27/43
155
a) State Chairman and administrators - responses
from discussed (For list see page 168)
1) War Savings Staffs: Abolishment not
intended; clarification to States asked
for by Miss Elliott
164
College Reunions: Purchase of bonds to be substituted -
suggestion of H. 1. Babcock, Chairman of Board of
Trustees, Cornell University - 2/25/43
39
- G -
General Counsel
Opinion on salary of official or employee of United States
Government on leave with pay from private employment -
2/26/43
123
- J -
Justice, Department of
Salary of official or employee of United States Government
on leave with pay from private employment: General Counsel's
opinion - 2/26/43
123
- I -
Knutson, Harold (Congressman, Minnesota)
See Revenue Revision
- L -
Lindow, Wesley
See Deferments, Military
- M -
Book Page
Merchant Shipping
See Board of Economic Warfare
Military Reports
British operations - 2/25/43, etc
612
111,112,154,
223,225
Morgenthau, Henry. Jr.
To be provided with new "Lodestar" plane prior to March 1 -
2/26/43
122
- N -
Non-defense Expenditures
See Financing, Government
North Africa
See Occupied Territories
Norway
HMJr's statement in regard to 3rd anniversary of invasion -
2/25/43
107
Eye, Gerald P. (Senator, North Dakota)
See Financing, Government: Non-defense Expenditures
- 0 -
Occupied Territories
North Africa: Developments in program discussed in White
memorandum - 2/27/43
149
- P -
Paul, Handolph
See Revenue Revision: Rual Plan
Potomac Electric Power Company
Treasury to participate in hearings scheduled to consider
reduction in rate - 2/25/43
72
Procurement Division
For Senator Nye's discussion of purchase for War Department
of railroad cars for hospital and medical purposes, see
Financing, Government: Non-defense Expenditures
- R -
Revenue Revision
Forgiveness plan resembling that of Congressman Robertson's
reviewed in Paul memorandum - 2/27/43
191
Ruml Plan: Copies of Paul speech in Brooklyn giving
Treasury point of view to be sent to Cabinet officers -
2/27/43
192,193
Broadcast by Sullivan, Congressman Knutson (member of
House Ways and Means Committee), and Senator Vandenberg
(ranking Republican member of Senate Finance Committee) -
0
2/27/43
198
- 8 -
Book Page
Salary of official or employee of United States Government
on leave with pay from private employment
General Counsel's opinion - 2/26/43
612 123
Shipping
See Board of Economic Warfare
Speeches by HMJr
In connection with captured German war film - 2/27/43...
216
Sullivan, John L.
See Revenue Revision
- I -
Taxation
See Revenue Revision
- V -
Vandenberg, Arthur H. (Senator, Michigan)
See Revenue Revision
- Y -
War Savings Bonds
See Financing, Government
1
February 25, 1943
9:33 a.m.
HMJr:
Hello.
Operator:
Donald Davis.
HMJr:
Right.
Donald
Davis:
Hello.
HMJr:
Hello, Mr. Davis.
D:
Yes.
HMJr:
Morgenthau.
D:
Good morning, Mr. Secuetary.
HMJr:
How are you?
D:
Fine. I talked to Mr. Wilson last night,
and we were going over some very important
organizational matters here....
HMJr:
Right.
D:
....and I must be very frank and state that
my previous obligation to him....
HMJr:
Yes.
D:
....he 18 very desirous, in fact, insistent
upon my carrying it out until we get some of
this thing straightened out over here, and I'm
equally frank in saying that I feel that I
have the obligation to do it and should carry
on with him in the situation as it exists.
HMJr:
Well, now look, Mr. Davis, supposing I can
get you released of that obligation 80 that
you can decide what you want to do?
D:
Well, that would - to be perfectly frank, that
would be very embarrassing to me.
HMJr:
It would be?
D:
It would be, yes.
2
- 2 -
HMJr:
I see.
D:
Because I have - - I have been thrown into this
picture here, and I know that he's depending
on it for at least awhile, and it would be - in
terms of his request to me ánd my commitmente
to him, it would be very embarrassing to have
that happen, Mr. Secretary. I regret exceedingly
to have to-say that.
HMJr:
I see. Well, of course, the way I sort of feel
18 a.6 though O.P.M. is part of the Government
the way the Treasury 1s.
D:
Yes, that's true.
HMJr:
Sometimes it's hard to realize it, and I'm going
to say this - but then if you say that you don't
want 1t- but I would like to go to the President
and have him release you of any obligation, then
let you make up your own mind where he thinks
it would be most important to have you serve his
Government.
D:
Well, that's perfectly true, and 8.8 - and I - all
I can say 1s that I'm here under orders.
HMJr:
Yes.
D:
On the other hand, I would say that if there's
any - if there can be any consideration given to
personal preference
HMJr:
Yes.
D:
in terms of what I've undertaken here and
gotten into
HMJr:
Yes.
D:
I would have to xpress to you
HMJr:
Yes.
D:
that I would have & 'sonal preference
....
right at this time, even though being - being
very appreciative of the compliment paid, I
would have a personal preference to stay right
on here and see this thing through.
3
- 3 -
HMJr:
Yes.
D:
I would - I have to be. perfectly honest in saying
that, sir.
HMJr:
Yes.
D:
But beyond that, of course, I have - I have nothing
to say.
HMJr:
Well, I wouldn't - I don't want anybody to come
over here under duress, see?
D:
Well, I - that's why I'm 80 frank...
HMJr:
You - you....
D:
....and prompt in trying to report it to you in
that manner.
HMJr:
You feel you would be coming under duress?
D:
No, I don't think - I don't think it's durese in
anything the Commander-in-Chief tells you to do.
HMJr:
Yeah.
D:
But, on the other hand, if there is a place for
an expression of personal preference, why, this
is the place, and I'm - I'm trying to be perfectly
frank and honest in expressing it.
HMJr:
Well, let's - let's take another minute - supposing
I say - I said to the President that I want an
opportunity to talk to you, at least see whether
we see eye to eye.
D:
Yes, sir.
HMJr:
And then if we did and I still wanted you - that
I asked him for you, you see?
D:
Well, wouldn't it - would it be proper to suggest
....
HMJr:
Yes, anything's proper.
D:
....that you - that you talk it over with Mr.
Wilson?
4
- 4 -
HMJr:
I'd rather talk it over with Mr. Nelson.
D:
Or with Mr. Nelson, either one.
HMJr:
Well, I would do that in the first instance.
D:
Yes. Well, I - - all I can do (laughs) in the -
in the position in which I find myself.
HMJr:
Yeah.
D:
....18 to be - try and be perfectly frank with
you, and all I can say further 18 that whatever
my assignment might be I would give it all
that there 18 in me.
HMJr:
So I've - I understand from your reputation.
D:
But, on the other hand, I felt that our talk
yesterday was of the nature that I - I could
properly express a personal point of view to
you.
HMJr:
You - you (laughs) could even if you were over
here. Otherwise I wouldn't want you.
D:
Okay, sir. (Laughs)
HMJr:
But I would like to be in a position to talk
further with you to find out whether we might
hit it off.
D:
Yes, sir.
HMJr:
And the only way that I could do it would be to
talk with Nelson and then, depending how
Nelson talked, would be to go to the President.
As I say, it's a question of - what I think we
have over here 1s moderately important, and for
him to decide where you could serve your
country best.
D:
Well, I think that that's entirely - that's -
that's entirely up to you, sir, and that - my
only suggestion to make.
HMJr:
Yes.
5
- 5 -
D:
after having made my own personal statement
HMJr:
Right.
D:
1s to suggest that you talk with Mr. Nelson
or Mr. Wilson.
HMJr:
Well, I've only met Mr. Wilson once in my life.
D:
Yeah.
HMJr:
I happen to know Mr. Nelson very well.
D:
Yeah, yeah.
HMJr:
I don't, so I think I will call up Mr. Nelson.
D:
All right, sir.
HMJr:
And then, all I'm asking - and I'd like to be able
to sit down and talk with you, and then after we've
had our talk we may find, well, there's no use.
D:
Yes, sir.
HMJr:
Do you see what I mean?
D:
Well, all I've attempted to do is I cleared it
with Mr. Wilson and got an expression of his ideas,
and I've been try.. - I tried to be frank with
expressing my personal inclination, and I won't
say desire
HMJr:
Yes.
D:
to you.
HMJr:
Well....
D:
Beyond that point, I don't think I can go at the
present time.
HMJr:
Well, I'll have a - I appreciate your frankness
and I'm going to call up Mr. Nelson and see if I
get anywhere.
D:
Thank you, 81
6
-6- - -
HMJr:
Thank you very much.
D:
You bet.
7
February 25, 1943
9:39 a.m.
HMJr:
Hello.
Operator:
Mr. Nelson.
HMJr:
Hello.
Donald
Nelson:
Hello. Good morning, sir.
HMJr:
How are you, Don?
N:
Fine, thank you.
HMJr:
Good. Well, you seem to be getting along
better.
N:
Well, they're just getting me mad now.
HMJr:
(Laughs) Well, it seems to be working all
right....
N:
Well....
HMJr:
....and don't let the columnists get you down.
N:
They never will.
HMJr:
No.
N:
I - I just stopped - I was thinking the other
day while reading Dave Lawrence's cracks,
remembering when I was back out in civilian
life of reading....
HMJr:
Yes.
N:
the same Dave Lawrence on you and others
around here, and....
HMJr:
And believed it.
N:
(Laughe) No, I didn't believe it.
HMJr:
(Laughs)
N:
(Laughs) But I couldn't help but think that -
just what you fellows have gone through....
8
- 2 -
HMJr:
oh, yeah.
N:
....1n ten years down here in this place.
HMJr:
Yeah. Well, 1f - - it would all be 80 much
easier if everybody helped each other.
Yeah, but they don't do it and they won't do it,
I guess.
HMJr:
That's right. Well, I'm calling up for a
little help now.
N:
All right, sir. What 1s it we can do for you?
HMJr:
Well, I've been looking around for somebody
who 1s connected with a concern that has
national sales organization, who could come in
and sort of head up this drive on Federal
securities..
N:
Yes.
HMJr:
....and one of the men that's been recommended
the most highly is this Donald Davis, who was
an assistant to Eberstadt. Now I had a talk
with him yesterday, and he said that he had
sort of given his word to Wilson that until he
sort of reorganized the thing and found a
place for him that he would stay with him, do
you see, for awhile.
N:
Yes.
HMJr:
Now he called me up this morning and he said
Wilson wants to hold him. Well, whatever he's
doing couldn't have been BO important, because
as of yesterday he had no definite niche, you
800?
N:
Well, of course, that was only because of the
reorganization of duties following Eberatadt's
removal, you see?
HMJr:
Yeah. Do you know Davis?
N:
Oh, very well.
9
- -
HMJr:
Do you think
N:
He's a very fine fellow.
HMJr:
Now evidently he doesn't want to ask Wilson even
for the right to - to talk with me, see? Now
what I'd like to have is - I don't know the man *
well enough. I've had one talk with him, and
what I'd like to have is the right to sit down
and talk with him, you see?
N:
All right. I'll talk it over with him and
Charlie this morning.
HMJr:
And see if we can't get together, and then 80 a.e
to put all my cards on the table, if I decide
that he's the fellow to head up my sale of
financial securities, you see - and if - - if you
won't release him, and I - - then I'd like to go -
I'd hate to do it, but I would - I would like to
go to the President and say, well, let him make
up his mind, see?
N:
No.
HMJr:
But I - - I don't want to do that....
N:
Well....
HMJr:
because I don't think I
N:
There 1s - there is some doubt in my mind as to
whether he would be the - the ideal man to head
that sales organization. I think he's a very
good man.
HMJr:
Yes.
N:
I think he's an outstanding fellow....
HMJr:
Yeah.
N:
....as a matter of fact.
HMJr:
Yeah.
N:
I don't think of him in - as - I know him very
well. I know his work before he came here, and
know his work here.
10
- 4 -
HMJr:
Well....
N:
I don't think of him as the sales organizing
type.
HMJr:
No, but he's had this publicity experience.
They're having a - they spend $9 million dollars
a year for advertising.
N:
Yes, he's had that.
HMJr:
He was in charge of advertising there for ten
years.
N:
Yes, I know that.
HMJr:
And - and he started in the radio business, and
he's had some banking experience. I don't want
to - you see, I don't want a banker. I don't
want an investment...
N:
No, I....
HMJr:
....fellow, 30....
N:
can - I'll never have one again as long as
I live.
HMJr:
(Laughs) So I - - I want to go to commercial life
just the way I went to you. After all, you owe
me something anyway.
N:
No...
HMJr:
You never gave me something in return for your-
self.
N:
(Laughs)
HMJr:
See?
N:
Well, I'll do whatever we can, and I'll talk to
Charlie.
HMJr:
I - well, I'm - - Don, I'm awfully serious about
this....
N:
All right.
11
- 5 -
HMJr:
....and....
N:
I'll talk to Charlie right away and I'll call
you back.
HMJr:
....he - he's one of 22,000 you've got over
there.
N:
Well, he's not one of 22,000. He's one of, I'd
say, ten.
HMJr:
Well....
N:
I mean I'd rank - - he - he ranks right in with
the top ten we've got.
HMJr:
But he - he hasn't got that position now. I mean
he didn't have up till yesterday.
N:
No, because - only because of the - of the
reorganization of the....
HMJr:
Yeah.
N:
....of the work, you see.
HMJr:
Well, all I'm asking 1s I'd really like to have
a chance to sit down and talk with the fellow,
see?
N:
Okay. Well, I'll....
HMJr:
And then....
N:
....talk to Charlie Wilson right away.
HMJr:
And he does feel under obligations but - well,
anyway, do as - see what you can do for me.
N:
I will. I'll call you back.
HMJr:
I thank you.
N:
All right, sir.
12
February 25, 1943
10:24 a.m.
HMJr:
Hello.
Donald
Nelson:
Hello, Mr. Secretary. This is Don Nelson again.
HMJr:
Right.
N:
I talked O Charlie Wilson and there's no objec-
tion to your talking to Don Davis. Charlie
feels that he has to have some time because of
the way he's using Don Davis and plans to use
him, he'd have to have some time to - to replace
him. He feels that it would be bad for him at
the moment, because he just 18 under such pres-
sure and hasn't anybody that can help him.
HMJr:
Yes.
N:
But there's certainly no objection to your talk-
ing to him.
HMJr:
There isn't?
N:
If you - if we can get time to replace him, that's
the main thi we want.
HMJr:
Well, that's all I - - I wanted to ask for. And, ae
I say, after - I've only had a very short talk
with him and he's a very loyal fellow and he was
telling me he was under moral obligations and he
doesn't want to do anything.
N:
Well, and - and he's really helping Charlie
tremendously at the moment, because Charlie 18
just under tremendous pressure, naturally.
HMJr:
And if - after we've had several talks we might
not hit it off.
N:
Well, I have an idea you won't, but then that's
HMJr:
You don't think we will?
N:
No, I just don't think 80. I mean that would be
my opinion, and I'm not - I'm being absolutely
honest with you.
13
- 2 -
HMJr:
Why, Don't
N:
Well, I don't - I doubt . - it's hard to explain.
It's one of those intuitive things.
HMJr:
(Laughs) I Bee.
N:
Now I think the man is fine. I think he's a
swell fellow, a grand fellow, but whether he'll
be pliable enough tw.Work this thing out I don't
know.
HMJr:
Pliable enough?
N:
Yes.
HMJr:
Well, you - you - you don't feel that he's the
kind - his backing is the kind of fellow?
N:
Well, I mean I just think for that - I think
he's - he's better equipped, better adapted
for a production and administrative job than he
is for that organizing and selling campaign.
That's my only feeling about it. Now I'm - I
may be entirely wrong and it's a enap judgment,
I'll admit.
HMJr:
Now you got another minute?
N:
Yes, sir.
HMJr:
Well, there was another fellow suggested.
You'll think I'm concentrating on you. His
name 1e Robbins. You most likely never heard
of him.
N:
oh, yes, from General Foods.
HMJr:
That's right. He's - he's president of their
sales organization.
N:
Now he's R much - - in my opinion, & much
better balanced man for that job. Robbins is
a - is a - is a fine fellow.
HMJr:
Yeah.
N:
He's more of the sales type.
14
- 3
HMJr:
Well, I've had a sort of an advisory sales
committee headed up under Grant of General
Motore...
N:
Yes.
HMJr:
and he's been on this committee for three
or ur months, and he's very keen about the
work that we're doing over here, and I think
he'd kind of like to do it.
N:
Well, now let me - let me look into that. I
think we could - I'm sure we could spare Robbine
much better than Don Davis, and in my opinion
he would be a better type of man for that be-
cause I think he's more flexible, and if he
can't just get his way, he won't just back up
and stop.
HMJr:
I see.
N:
And that's the thing in Government I've found.
As you know, Mr. Secretary, there are a lot of
people who feel, well, you've just got to beat
everybody in the head and do it Just one way.
HMJr:
Yes.
N:
Well, that won't work in Government.
HMJr:
Well, I've - after ten years I've learned it.
(Laughs)
N:
(Laughs) Well, I - - I've learned it myself.
HMJr:
Well, as I say, Robbins is another possibility.
N:
Well, this boy, Robbins, I think very highly
of
HMJr:
Yeah.
N:
and I think - I think of him 8.6 being a
very unusual sales type fellow.
HMJr:
Yeah.
15
- 4 -
N:
Robbins came down from General Foods and
originally worked in our Priorities Section.
HMJr:
Yeah.
N:
Everybody around here likes Robbins.
HMJr:
Yeah.
N:
Likes him very much; he's very flexible; he's a
good administrator; he's got a lot of tenacity....
HMJr:
He's got....
N:
.without - he's got tenacity without feeling
that if you don't go along with him, you're dead
wrong.
HMJr:
He's got 8. lot of drive.
N:
I think 80.
HMJr:
Terrific drive.
N:
I - I think very highly of Robbins, and while I'd
hate like the devil to lose Robbins, at the same
time it would be my opinion that he would be a
better man for you not - not - and this - - Don
Davis is the more able man in every way, but not
in the sales picture as I see it.
HMJr:
Yeah. Well, would you mind giving me another ring
on Robbins?
N:
I'll be glad to do it.
HMJr:
Thank you 80 much.
N:
All right, sir.
HMJr:
Do - - do you think you can do it today?
N:
Yes, I'll do it today.
HMJr:
Thank you.
N:
Okay.
16
February 25, 1943
11:02 a.m.
William
Heffelfinger: Yes, sir.
HMJr:
Yesterday, Heffelfinger, when some of the
O.W.I. people were in they said that the
bank out at Falls Church - if you went
there and tried to get a tax anticipation
note, you couldn't get one.
H:
Uh huh.
HMJr:
Now I wonder how general that 1s? Don't the
banke have them on hand?
H:
They don't have them on hand. They take
applications for them and send them to the
Fed. They're only issued at the Fed. Banks.
HMJr:
Well, why - why don't they have them on
hand?
H:
Well, because of the registration and things
of that sort. The records are all kept at
the Feds.
HMJr:
Well....
H:
They're not kept here at the Treasury.
HMJr:
Tell Mr. Bell to talk to me about that....
H:
I'll do that, sir.
HMJr:
....this afternoon, will you?
H:
Okay, sir.
HMJr:
Because one of the people - they couldn't
understand why they can't just walk in and
get one like they can a bond.
H:
Well, they handle them the same way F and G
Bonds are handled, you know. They have to
take the application for those and eend to
the Feds.
HMJr:
Well, you talk to me - tell Bell....
17
- 2 -
:
H:
I'll have him - okay, sir.
HMJr:
Thank you.
H:
You bet.
18
February 25, 1943
11:18 a.m.
HMJr:
Hello.
Operator:
Mr. Sproul.
HMJr:
Hello.
Allen
Sproul:
Good morning, Mr. Secretary.
HMJr:
Hello, Allen, are you alone?
S:
Yeah.
HMJr:
Because I am.
S:
Yeah.
HMJr:
And I just wanted to have R little heart-to-
heart talk with you....
S:
Yeah.
HMJr:
....and - because I - I think that you must
have misunderstood the - the underlying
motive of this telegram of mine, and that -
I'd like to get it settled once and for all
in my mind and yours also.
S:
Yeah.
HMJr:
Now what I got in mind -- let me say it over
again -- in this coming drive, I want the
fiscal agents to be the boss in their district,
80 we get that straight, see?
S:
Uh huh.
HMJr:
There can't be any misunderstanding about that.
Hello?
S:
Yeah.
HMJr:
The only thing there seeme to be a misunder-
standing on 1e this, I want both the Victory
Fund and the War Savings to give you everything
that they've got.
S:
Yes.
19
- 2 -
HMJr:
Now in order to do that at the level, we've
got a lot of personalities, you nee - and these
managers of the Victory Fund plus these State
chairmen, the thought that I had was that those --
I don't know - half a dozen people. under your
leadership would form a committee at just that
level
Uh huh.
HMJr:
....and that they would be assist you. Now if
we don't do something like that, too many feelings
are going to be hurt and too many of these prima
donnas are going to have their nose out of joint.
I wasn't thinking of it except at that level. I
wasn't thinking of it in the counties or half a
state or anything else, but just at that level,
and it would make my Job much easier if we could
do it that way. Now from the telegram that we
got from you and Chicago -- I gather you must
have been talking with each other, because I got
more or less the same telegram -- but I - I can't -
I've thought a lot about it, and it seems to me
it's on the plus side in taking care of these
people, and a lot of them, these State chairmen,
have done a lot of good. In other words, they
won't be called in - the thing that they feel is
that they won't be called in to assist the
Victory Fund Committee, they'll be called in to
assist you.
St
I see.
HMJr:
Do you see what I mean?
S:
Yeah.
HMJr:
Now that's the whole thing. Now I don't see why
that won't work, and and they got a thing
called "face-saving" which 1s important where
you have a lot of people who have - who have done
a lot of good work.
S:
No, there's no question about....
HMJr:
Now -- this 18 for you Dick Patterson came
down here the other night and raised unshirted
hell. He upset me; I was sick afterwards; and
(cont.)
20
- -
HMJr:
what he wanted I refused to do pointblank, and
(cont.)
that was to make him co-chairman.
S:
oh, I see.
HMJr:
And I said, no, I wouldn't do it. Bo I've
turned that down flat, and I don't - I can re-
word the telegram any way anybody wants it to
make it understood that there's only one boss in
the Federal Reserve District and that's the
fiscal agent. But you get the distinction of - of
having - - calling it a committee at the top level.
Otherwise they feel that they've been called in
to assist the Victory Fund Committee. Now the
whole thing isn't terribly important, but it
does take care of certain faces - face-saving -
and I'd like it very much because it would help
me. Now I told you if anybody gets hard or tough,
I'll come and take care of him, and I've taken
care of Diok Patterson.
S:
Yeah.
HMJr:
He was very tough.
8:
Well, then the only - the - I agree with you it -
it really shouldn't make much difference 80 long
as it's understood where the responsibility and
the authority lies. The question I'll have 1s
with people feeling that way that if - if you do
it one way they're being called on to assist the
Victory Fund Committee, and if you do it the other
way that they retain some authority, whether they,
in view of the past fifty and their current dis-
cussions - whether they won't continue this debate
and argument and division which I think 18 - is
just too bad for the Treasury's main objective.
HMJr:
Well, I can promise you it won't. Now I - I
settled the thing the other night with Dick
Patterson. I told him pointblank I wouldn't.
S:
Yeah.
HMJr:
You see?
S:
Yeah.
21
- 4 -
HMJr:
Then there'll be no misunderstanding as to who
is bose and who represents me. But you get the
difference -- I'd like to go over it once more --
the difference 18 one way, as I get it you have
it, you'd like them to come in to assist the
Victory Fund. I'm simply suggesting this commit-
tee of which these State chairmen will be a
member, the managers of the Victory Fund, and
yourself a.s. chairman and bose.
S:
Well, they - the one other aspect is the public
aspect of it - is having the two committees
already in existing - existence
HMJr:
Well
8:
the appointment of a third committee which
may be looked upon as a
HMJr:
Well, call it an executive committee, if you want
to.
S:
Well, suppose
HMJr:
The com. - supposing you call it an executive
committee?
8:
Well, even then the - the question of a division
of responsibility may continue to exist.
HMJr:
No.
S:
in the public mind even though we know just
HMJr:
Well, I'll make it - in my public statement and
at the press conference, I'll make it very, very
clear, because there isn't a shadow of doubt in
my mind
S:
Yes.
HMJr:
and there won't be, and you know me well
enough after these years that when I say some-
thing no matter how tough the going goes, I
stick by it and stick by my people.
8:
No question about it.
22
- 5.-
HMJr:
I mean I never let them down.
S:
No question of that.
HMJr:
And there'll be absolutely no question about
the authority.
S:
Well, suppose I take.a look at this telegram
and Bee....
HMJr:
I've read your telegram very carefully.
S:
No, I mean your telegram which - and see whether
there are any changes which could be made ther
which would make it clear just how the land
lies even though we retain the committee form.
HMJr:
Retain the committee form but - but strengthen
the thing that - that you're the bose.
S:
Yeah.
HMJr:
I'll do that.
S:
I thought I might try my hand at it and let you
have the result.
HMJr:
But leaving the committee thing?
S:
Yeah.
HMJr:
Well, supposing you do that and get me off a
telegram as soon as you can, will you?
S:
I'll do that, yes.
HMJr:
And I'm spending all of my time looking for
"Mr. X".
S:
I see.
HMJr:
I got a couple of very good people but it 80
happens that both of them are with Donald
Nelson, and - which 1s an advantage that
they're here 80 they don't have to go through
the process of getting a board of directors to
give them the permission to come.
S:
Yeah.
23
- 6 -
HMJr:
But he's wrestling about letting me have them.
But he's been very fair, and he said that he's
thinking it over. I've talked to him twice this
morning. They're top-notch fellows.
8:
Well, I hope you can get one of them be.- - and
I think myself that your Job 1e just as important
as his and that he ought to let them go.
HMJr:
Well, he - he's being very nice about it. of
course, each person has his own problems, but
as I - I said, "I don't want to go to the
President about it," - "oh, you won't have to do
that," you see?
S:
No.
HMJr:
Well, you take another hand - pointing up your
authority as the fiscal agent, will you?
S:
All right, I'll do that.
HMJr:
And I'll take 8 - I'll - - I'll take another look
at it.
8:
Right.
HMJr:
Because I want to get this organization thing
settled, and - and it - it would be helpful to
me. You understand my position. I mean you
understand why I want to do it?
8:
Yes, I do.
HMJr:
Yes. But I - - I settled Dick Patterson the other
night, and he will stay settled. And, inci-
dentially, he's been talking to the newspapers
and one of them came in to see me from P.M.
yesterday, and I gave him the whole story, as
the result of which he's not going to run any-
thing.
S:
Well, I'm sorry about him because I've got the
feeling that he tells me one thing and he tells
other people other things, and I Just have lost
confidence.
HMJr:
Well, it's - it seems to be very much of a
personal issue, but I think you'll find that
(cont.)
24
-7- - -
HMJr:
once I give out the statement it's settled,
(cont.)
and you will have 1000% backing from this
office.
S:
Well, I'm sure of that.
HMJr:
And he hasn't threatened to resign or anything
like that, you see?
S:
Yeah.
HMJr:
Well, take another look at it.
S:
All right, I'll do that.
HMJr:
Thank you.
S:
Thank you.
25
February 25, 1943
11:30 a.m.
FINANCING
Present: Mr. Buffington
Mr. Gamble
Mrs. Klotz
H.M.JR: This is what I want you for: I just had
& long heart-to-heart talk with Allan Sproul. I said,
"Now look, Allan, get this thing straight. You are to
be the boss in this district. There is such a thing 8.8
face-saving, and I want the State chairman of War Bonds
to be & member of the committee, plus the executive
manager, of which you are chairman, for this drive."
I don't know whether you have seen these long
telegrams or not.
I said, "I don't care about it going below that
level; I don't care about the county, or the State, or
anything else."
I think I have sold him.
He said, "Can you change your telegram 80 that it
would make it perfectly clear that I am to be the boss
during this drive?" So, I said that we would.
I would like you two fellows to get together and
take a look at that telegram again and see what we can
put into it which would make it clear that during this
drive the fiscal agent of the Treasury is to be the boss
in the district.
MR. GAMBLE: I think that is perfectly reasonable.
He is the only one who is recommending the change, isn't
he?
26
- 2 -
H.M.JR: Chicago is the same. I told him so, and
he didn't deny it.
MR. BUFFINGTON: It can go in after "chairmen," and
say, "with full authority."
MR. GAMBLE: I think you can go further than that
and say that you recognize the necessity of placing the
authority in some one person, and it is going to be the
president of the Federal Reserve Bank, because this drive
must not fail. There is no reason for not doing that.
MR. BUFFINGTON: If you are going to give them the
responsibility, you ought to give them the authority.
MR. GAMBLE: No hesitancy.
H.M.JR: Do you want to take that thing out of the
Farm Credit and say that I am going to follow the model -
the plan which I used in Farm Credit, where I had all
these lending agencies, and appointed these general
agents? They had full authority to act for the governor
of the Farm Credit in the district.
MR. BUFFINGTON: I think for these men, if you
just added after-this word "chairmen," the words, "with
full authority for the April drive, that is all that is
necessary.
MR. GAMBLE: This wire says that on Monday you are
going to release substantially the following. That is
about what it says. When the wire goes out on Monday,
it can be directed to, say--
H.M.JR: He asked if I could look at it, and he
is sending me down a suggestion. I thought if we could
have something - I am going to call Young. He is the
only one, isn't he, who is kicking about this?
MR. BUFFINGTON: I haven't seen those.
27
- 3 -
MR. GAMBLE: Obviously, they have talked.
H.M.JR: I have gotten the same telegrams. Obviously,
they have talked.
MR. BUFFINGTON: They are the greatest objectors to
the waste in the Government, and are the greatest users
of the telephone. They criticize us for expenditures
down here.
H.M.JR: They have all this money from the interest
on the bonds, which they don't know what to do with. You
know the Federal Reserve is worried about their la rge
income, and they think Congress will take it away from
them. They have to spend it somehow.
I will call up Hap Young; and sometime after lunch
if you fellows - Bell will be back then.
You think it can be done?
MR. GAMBLE: Yes. The thing is, they have to be sold,
because I think this is just a temporary effort, and that
we are going to be confronted with the same problem in
May. They have to be sold that there is a definite value
in the War Savings organization throughout the country
that you want salvaged, and it is their business to
salvage it.
H.M.JR: I wish you could have heard me. I said,
"Now, listen, these fellows are there, and let's call
it 8. spade." I said, "I don't want my State chairmen
of War Savings to feel that they are becoming--"
MR. BUFFINGTON: Less important?
H.M.JR: No, I said, "No, they are serving under
the Victory Fund; they are on the same level with the
Victory Fund." I said, "I want this committee."
He said, "You will have three committees."
Regraded Unclassified
28
- 4 -
I said, "Call this the executive committee. In
other words, the State chairmen aren't going to report
to the manager of the Victory Fund in that way. Those
at the top level should be there as members of this
committee."
MR. GAMBIE: You aren't going to change the name
of the drive? You are not going to permit them to call
it the "Second Victory Fund Drive"?
H.M.JR: No.
MR. GAMBLE: You are going to call it the "Treasury
War Finance Committee"?
H.M.JR: Yes.
MR. GAMBLE: I think that is very important.
MR. BUFFINGTON: You have to designate it some way .
H.M.JR: I haven't had my publicity people in yet.
But the whole point they are finding out is, they want
to keep the - they want to keep this a Victory Fund
drive. I said that the State chairmen come here
(indicating) with the managers of the Victory Fund,
and on the top of that is the Federal Reserve.
MR. GAMBLE: Yes, and the boss. There is no
quarrel.
H.M.JR: Is there any quarrel?
MR. BUFFINGTON: We will look that wire over.
29
February 25, 1943
11:54 a.m.
HMJr:
Hello.
Operator:
C. S. Young in Chicago.
HMJr:
Right. Hello.
C. S.
Young:
Hello, Mr. Morgenthau.
HMJr:
How are you?
Y:
All right, sir.
HMJr:
Mr. Young, I got your telegram and I also have
one from Allen Sproul.
Y:
Oh, yes.
HMJr:
And after reading them, I said that I guess
you two fellows have had your heads together.
Y:
Well, we - we were thinking along the same
lines as to the April drive. We thought that
the - the first plan there was - was more work-
able.
HMJr:
Well, now I've had a long talk with - hello?
Y:
Yes.
HMJr:
With Allen, and I think I've made my point - my -
what I got in mind clear to him, and he seemed -
hello?
Y:
Yes.
HMJr:
We've got a lot of clicks - clear to him, and
I'd like to go through the same thing with you.
Y:
All right.
HMJr:
Now what I have is this, for the April drive -
it would make my job much easier if instead of
asking these State chairmen to come under the
Victory Fund Committee at the top, that....
Y:
Uh huh.
Inclassified
30
- 2 -
HMJr:
Hello?
Y:
Yes.
HMJr:
....
that you as my fiscal agent with full
authority and all the backing that I can give
you as the bose in the district
Y:
Uh huh.
HMJr:
would invite these State chairmen plus the
managere of the Victory Fund to sit with you
as a committee, of which you would be complete
boss.
Y:
Uh huh.
HMJr:
But only to do it at that lèvel. It would not
go down any further, you see?
Y:
Oh, yes.
HMJr:
Itwould be just at that level.
Y:
Uh huh.
HMJr:
Now if we do it that way these State chairmen
of War Bonds who have done a very fine job -
it would be a "face-saving" thing for them.
Y:
Sure.
HMJr:
The other way they would be invited to come in
under the Victory Fund Committee
Y:
I see.
HMJr:
which they don't like and I don't blame them.
Y:
Uh huh. Well, I'd have no objection because it
1en't the - we don't care as to who the directive
will be issued to, whether it would be to them
or to us, and that the - we could work that out
all right.
HMJr:
No, the - no, the directive would go to you as
the boas for me in the district.
Regraded Unclassified
31
- 3 -
Y:
The only thing that I was worried about, Mr.
Secretary, was that the - if we're going -
having these committees at the district level,
and I thought that might just be more confusing
HMJr:
No.
Y:
speaking to the public.
HMJr:
No, just at the top level.
Y:
Uh huh.
HMJr:
Now what I - - and Allen said he he kind of thought
that was all right if I could make it perfectly
clear that he was the boss.
Y:
Yes.
HMJr:
Now I'm taking another look at my telegram and I'm
going to see how we can strengthen that up, and I
will send that to you sometime this afternoon.
Y:
All right.
HMJr:
But he said if I made it perfectly clear that the
fiscal agent was the boss, why, he said - I gathered
that from what he said - that the committee idea
at the top would be all right.
Y:
Yes, I was just afraid of going down to the county
and township
HMJr:
No.
Y:
level that you'd have a lot of confusion and
the - it wouldn't do any good.
HMJr:
I didn't have that in mind.
Y:
Uh huh. Well, that - we can work that out, Mr.
Secretary.
HMJr:
Well, don't you think you could work that out?
Y:
Oh, yes, we can work that out.
Regraded Unclassified
32
- 4 -
HMJr:
I think 80.
Y:
I - yeah, we can do that, and - but it was
just these committees under the - the district
level and, of course, we can work 80 much
better if we - 1f we just have the State
Administrators and we can get along all right.
HMJr:
Well, that's all I had in mind.
Y:
Uh huh.
HMJr:
But what I had in mind was that you would invite
them in to sit with you and that they would not
be invited in to sit under the chairmen of the
Victory - I mean under the managers of the
Victory Fund, you see?
Y:
Yes, uh huh.
HMJr:
Now granted that there'll be three names - but
it's just that it - it makes it nicer. I mean
you put yourself in their place, you see?
Y:
Sure.
HMJr:
But don't you think that sounds all right?
Y:
Well, I - we can work that out all right.
HMJr:
Well, take - take another look at the telegram,
and if - if you had some thought as to how to
strengthen your authority along the lines I'm
talking, I'd appreciate it if you'd send me a
wire.
Y:
All right.
HMJr:
Then I'll take what you send me and what Allen
sends me plus what my own boys are working on,
and I'll get you off something this afternoon.
Y:
All right.
HMJr:
See?
Y:
All right, and - and I'll look that over.
Regraded Unclassified
33
- 5 -
HMJr:
Yes - now this looks pretty good to you?
Y:
And the only thought that I had was that the -
we wanted the - for your sake, we wanted to do
an excellent job, and I didn't want B. lot of
confusion and - as to who's going to have the
place in the sun and all that, you know.
HMJr:
Well, do you think this would make confusion?
Y:
I - I don't think BO. It would be a little,
but it wouldn't be - we can - we can handle that
all right.
HMJr:
But, on the other hand, it would - it would,
you know, smooth over some personal feelings.
Y:
Oh, sure, I know - and I understand. They - we
have to - we have to take that into considera-
tion. I understand your viewpoint on that too.
HMJr:
And I think it's worthwhile doing.
Y:
And the - the only thing we want is just to be
sure that we can all work together and do the
good job.
HMJr:
Right. Well, if we can work out this one little
detail, I think the rest is going to flow all
right.
Y:
Well, that little - that will be all right.
HMJr:
Good.
Y:
And that'll be all right, and I'll - and I'll
look that over and if you want a telegram from
me, why then, I'll look it over - why, I'll
send it to you.
HMJr:
I wish you would.
Y:
All right.
HMJr:
Thank you.
Y:
All right.
34
February 25, 1943
2:10 p.m.
HMJr:
Hello.
Gen. Gordon
P. Saville: Hello.
HMJr:
Morgenthau speaking.
S:
Sir, this 18 General Saville.
HMJr:
Yes, General.
S:
I have - you may remember me. We went up to
the First Air Force together to look over air
defenses.
HMJr:
At Glenn Martin.
S:
Yes, sir.
HMJr:
That's right.
S:
I have been detailed by the Chief of the Air
Staff to prepare a presentation for you....
HMJr:
Right.
S:
on this question that you asked about.
HMJr:
That's right.
S:
When would be convenient for you next week,
Mr. Morgenthau, for me to present that?
HMJr:
Next week?
S:
Yes, sir.
HMJr:
You won't be ready until then, what?
S:
No, sir. I want to - to try to assemble as
complete dope as I can, and I'm assembling that
now.
HMJr:
Well, now let's just take a look. Just a
moment, please. You - they told you what -
what I wanted?
S:
Yes, sir.
35
- 2 -
HMJr:
Uh - oh, now wait a minute, I'm going out of
town. Can you do it - would - would you be
ready by Tuesday?
S:
Yes, sir.
HMJr:
How long will it take, General?
S:
Well, I would like to take about an hour and a
half, if I could.
HMJr:
Surely. And is it to be somewhere with the Air
Corps?
8:
Yes, sir. My hope was that I could get you over
to our air room where we present our summaries
and have all kinde of maps.
HMJr:
That's all right. Well, I could - I could go
there directly Tuesday morning.
S:
All right, sir.
HMJr:
I mean - 1s that too early?
8:
No, sir. That - that 18 fine.
HMJr:
That would be fine?
S:
Yes, sir.
HMJr:
Now supposing I got there, say, around nine
o'clock?
S:
That would be fine.
HMJr:
And where - where would that be?
S:
Well, sir, I'll tell you, I think the best
thing, Mr. Morgenthau, would be for me to ar-
range to meet you, possibly at your home 8.8 I
did last time....
HMJr:
Fine.
S:
before you left.
HMJr:
Fine.
36
- 3 -
S:
What hour would that be?
HMJr:
Eight-thirty?
S:
Eight-thirty.
HMJr:
Eight-thirty.
S:
Eight-thirty a.m.
HMJr:
All right.
S:
And your home address, sir, may I have that?
HMJr:
2434 Belmont Road.
S:
Belmont Road.
HMJr:
Now did - did you go there before?
8:
Yes, sir.
HMJr:
You know, it's just off Massachusetts.
S:
Yes, sir.
HMJr:
2434 - and that will be eight-thirty Tuesday morn-
ing. Now shall I have a car or will you have a
car?
S:
Either one, sir. You'll - you'll be wanting to go
back to the Treasury, and being much higher ranking
than I am, I think it would probably be easier for
you to get the car.
HMJr:
Well, I have a car.
S:
I will then be at your house at eight-thirty...
HMJr:
Fine.
S:
planning to ride out here in your car.
HMJr:
Right.
S:
Then I'll let mine go.
Regraded Unclassified
37
- 4 -
HMJr:
Thank you.
S:
Thank you very much, sir. Goodbye.
HMJr:
Goodbye.
38
February 25, 1943
Ted Gamble
Secretary Norgenthau
Please take care of this suggestion from Mr. E. E.
Baboook of Ithaca, New York, today. Mr. Baboook is
chairman of the Board of Trustees at Cornell University.
cc-Mr. Gamble
39
February 25, 1943
2:38 p.m.
Operator:
Go ahead,
HMJr:
Hello.
H. E.
Babcock:
Hello. Hello, Henry.
HMJr:
Hello, Ed.
B:
It's awfully nice of you to talk to me.
HMJr:
That's my privilege.
B:
(Laughs) I hope I've got something for you.
I - I don't know. The - we were having a
75th reunion here at Cornell.
HMJr:
God, I didn't know you were that old.
B:
Yes, sir, we are.
HMJr:
No, I mean you.
B:
Oh - oh, no, I'm not that old. I was fifty-
four the other day, and I pitched manure and
shoveled gravel all day.
HMJr:
(Laughs) Well, that's pretty good.
B:
And as the committees got to working around,
they hit on a scheme of calling it off --
of course, there's nothing else to do -- and
calling off the reunions
HMJr:
Yes.
B:
....and then they hit on this idea of every-
body who would normally go to a reunion in
the universities of the country -- and it's a
big movement in June -- sending what they'd
ordinarily spend in bonds to their universi-
ties.
HMJr:
Well, that sounds good.
B:
Oh, it - now if that sounds good to you, all
we want you to do 1s to say 80, and then I
want to talk to Joe Eastman and have him
endorse it
40
- 2 -
HMJr:
Yes.
B:
keep the people off the roads and off the
trains
HMJr:
Yes.
B:
....and that - I think that we can put all these
alumn1 associations clear across the United
States to selling bonde for you.
HMJr:
I think that would be wonderful.
B:
Well, now Vincent Callahan - do you know who
he 187
HMJr:
Yes, I do.
B:
Well, he has the story....
HMJr:
I see.
B:
....and if you care to give it your blessing,
and it would be - the boys up here who originated
the idea would be awfully proud, and....
HMJr:
Yes.
B:
....furthermore, I think it would kick it along.
HMJr:
Well, I'll - I'll get in touch with him right
away.
B:
That's swell of you.
HMJr:
I'll do it right away.
B:
How are you?
HMJr:
I'm all right.
B:
How's with the farm? Are you running the herd?
HMJr:
The farm - the farm 1s all right, still solvent.
B:
Yeah. (Laughs) Well, you always had it 80.
HMJr:
And Mrs. Klotz is sitting here and sends you her
regards.
41
- 3 -
B:
Well, that's fine. Is - and Callahan will get in
touch with me, will he?
HMJr:
No, I think it will be Ted Gamble, a man by the
name of Gamble.
B:
Yeah, I see. But it will clear through Callahan.
HMJr:
That's right.
B:
Thanks ever so much.
HMJr:
I'll do it right away.
B:
Okay.
HMJr:
Thank you.
B:
Goodbye.
42
February 25, 1943
2:50 p.m.
FINANCING
Present: Mr. Bell
Mr. Graves
Mr. Gamble
Mr. Buffington
Mr. Odegard
Miss Eiliott
H.M. JR: I made some progress this morning with
Chicago and New York.
I asked these fellows to fix me up a telegram.
Have you done it?
MR. GAMBLE: We haven't typed it out for you.
H.M.JR: I don't have the original.
MR. GAMBLE: I will read you the preceding sentence
to show where this goes in. "Details of the respective
tasks of each organisation at the State, county and
community level shall be worked out by the Treasury War
Finance Committee in your district on which you will
serve." Then add: "The Federal Reserve Bank president,
as responsible head of the April drive, shall have final
authority over and*responsibility for these details."
H.M.JR: Where would this go?
MR. GAMBLE: Where we are describing what is going
to take place. That does two things. It not only places
the respe sibility and the authority on them, but it also
makes clear that it will be his determination as to
what those details shall amount to. If he decides that
he doesn't want to do something at some community or
county level, that is his responsibility.
43
- 2 -
H.M.JR: We haven't said that before, that the
Federal Reserve Bank president is the responsible
head of the April drive?
MR. GAMBLE: Not that way.
MR. BUFFINGTON: Mr. Secretary, might I make 8
suggestion? Earlier in that same wire, there is this
sentence, "Therefore, I have this day requested the
presidents of each of the twelve Federal Reserve Banks,
Treasury fiscal agents, to serve as chairmen of a United
States Treasury War Finance Gommittee--"
H.M.JR: Where is that?
MR. BUFFINGTON: That is earlier in that wire, the
seventh sentence down.
Then add: "With full authority to direct this
drive." It seems to me that that is the first place
where there is the question of direction. That is
where you want to give them the authority.
H.M.JR: I would put it in here earlier, "to serve
as chairmen of the United States War Finance Committee,"
and then put it right there.
MR. BUFFINGTON: "With full authority and respon-
sibility."
H.M.JR: Yes.
MR. BUFFINGTON: That is all right. That is better
wording.
H.M.JR: "The twelve Federal Reserve Bank presidents
to serve as chairmen of the United States Treasury War
Finance Committee, with full responsibility." What did
you say?
MR. BELL: Say, "and authority."
44
- 3 -
H.M.JR: I would say, "with full responsibility
and authority." I want to get "to me" in there.
MR. OD EGARD: Say, "acting fiscal agent."
H.M.JR: You could say, "as chairmen of the Treasury
War Finance Committee, and as my representative, will
have full responsibility and authority in their respective
districts," or something like that.
I mean, I am not saying - but that is the place to
put it, in my opinion.
I have five minutes to go, and then I would like to
have it within an hour - something to go out.
.I talked to Sproul first, and then the other fellow.
They have been talking to each other. I told them 80.
What they thought was that this War Finance Committee
went right down to the county. They wouldn't have time
to do that.
I told them, "No," but I said that in fairness to
the State chairman-it wasn't right to invite him to come
and serve under the Victory Fund Committee in the district;
that the State chairman should be invited by the fiscal
agent to come and be a part of - if you want to call it
that - an executive committee, because they have Bo many
committees, and I didn't expect to organize the thing
below that level. But, the State chairman would be invited
by the fiscal agent to come in, and the administrator of
the Victory Fund would be invited to come in; and they
would meet around the table as a committee, he to be
chairman and the boss in the district.
They both said, "O.K.," if I would make clear the
fact that they were the bosses in their districts - that
both of them would be satisfied.
MR. BELL: Do they want that wire right away?
45
- 4 -
H.M.JR: I said I would get it off tonight. I
want to settle it. I am getting sick of it. They
were both very nice.
MR. BELL: Yes, I talked to them. I told them
the same thing. I don't know how they could get cut
of that wire any indication that you intended to
organize down to the grass roots.
H.M.JR: I can see that, Dan. It says--
MR. BELL: ... that the Federal Reserve president
should act as chairman. How could he act as chairman
of a thousand committees?
MR. GAMBIE : It says that the details of doing
the work is the specific task of each organization.
H.M.JR: "Therefore, I have this day requested the
presidents of each of the twelve Federal Reserve Banks,
Treasury fiscal agents, to serve as chairmen of a United
States Treasury War Finance Committee, with full authority
as my representative in their respective districts, to
direct the April drive."
MR. GAMBLE: Say, "full authority and responsibility."
H.M.JR: "Full authority and responsibility as my
representative." Say, "representing the Secretary of
the Treasury," if you want to be formal.
MR. BELL: That is better.
H.M.JR: Say, "representative of the Secretary of
the Treasury," because that includes you.
MR, BELL: No, I think it is better - I don't mean
because it includes me, but I think it is better to
represent the Secretary of the Treasury. You are sort
of putting it on a formal basis, and it isn't when you
put in "my."
46
- 5 -
H.M.JR: If you just would - that ought not to be
too difficult.
MR. BUFFINGTON: I can write that up if you want it
done, or read it now as it should be.
H.M.JR: Read it once more.
MR. BUFFINGTON: "Therefore, I have this day requested
the presidents of each of the twelve Federal Reserve Banks,
Treasury fiscal agents, to serve 8.8 chairmen of a United
States Treasury War Finance Committee, with full authority
and responsibility as my representative--"
H.M.JR: Say, "as the representative of the Secretary
of the Treasury.
MR. BUFFINGTON: ... "to have full authority and
responsibility in their respective districts to direct
this drive."
H.M.JR: Is that all right?
MR. GRAVES: Yes. It seems to be clear.
MISS ELLIOTT: Yes, sir.
H.M.JR: Ted?
MR. GAMBLE: Yes.
MR. BELL: Does this go to the presidents?
H.M.JR: I would say something like this, if you
could get off a telegram to the presidents of all twelve:
"After having your telegram, we would like to make the
following clarifying statement."
MR. BELL: Say, "In order to clarify the intention,
we have amended the telegram as follows.
MR. BUFFINGTON: Put in the lines that are involved,
and then put it in as quoted.
47
- 6 -
H.M.JR: Get that off to them tonight.
Sproul is sending us another.
You might just read it over the phone to Eccles.
MISS ELLIOTT: May I ask a question here, Mr.
Secretary? Was there any confusion. - any evidence of
confusion in the minds of State administrators that
these committees were to be organized down to the county
level?
MR. GRAVES: I think not in the minds of those who
were here. They now understand.
MR. BELL: In the replies there was none.
MR. GAMBLE: The replies from the administrators
were all very good.
MISS ELLIOTT: They weren't confused on this organiza-
tion in thinking there was to be this reorganization clear
down to the county level?
MR. GAMBLE: No.
MISS ELLIOTT: May I ask another question? Will
there be any confusion - these questions come into my
mind - were the people who worked for the Victory Fund
Committees paid, the volunteers who went out and worked
for them in this special drive in December?
MR. BUFFINGTON: No.
MISS ELLIOTT: They will not be paid in this drive?
MR. BELL: No.
MISS ELLIOTT: If we set up one--
MR. BUFFINGTON: I think that some kind of 8. statement,
which was suggested, might be made March 1, but nobody is
expecting it definitely.
48
- 7 -
MR. BELL: I understood that the organization said
that that question was out. I don't see why the Secretary
should make any statement on it.
H.M.JR: The answer to the question is that they
will not be paid - is that right?
MR. BELL: I understand they do not want pay, and
the question will not come up again.
H.M.JR: What else? Those are good questions.
MR. ODEGARD: I would like to raise one. We have
some farm advertisements that I think are very excellent.
They are made on the basis of an investigation and study
made by the Irwin-Wasey Advertising agency. They have
sent down a copy of their preparation, indicating the
basis upon which they proceed with this advertising
program. I would like to have you see that, if you would
care to take it home and read it. It was made 80 that
you could understand--
H.M.JR: I don't take any more work home, Peter.
MR. ODEGARD: If you have a chance to look at it
here--
H.M.JR: Can you put it up on one of those boards
here?
MR. ODEGARD: No, it is a book. It was made
especially for you.
H.M.JR: I am not trying to say - Randolph Paul
has been waiting since Saturday to see me on things.
Sullivan has been waiting since last week.
MR. ODEGARD: This wouldn't involve seeing you,
Mr. Secretary.
H.M.JR: But, I have to read - I can't, I just
haven't the time. The day isn't long enough. I can't
do it any more.
49
- 8 -
MR. ODEGARD: The second question is whether we
should go ahead with the production of those ads for the
farm war bond program, or whether we should hold them
up.
H.M.JR: My answer to you is that I would hold
everything up, certainly until the middle of next week.
MR. BELL: I agree with that.
H.M.JR: Don't think I am not interested, but there
is no use of my saying I will take them home and then
not read the stuff.
MR. ODEGARD: By holding up, you mean that our
people, for example, who have been working on plans -
copy - looking forward to the April drive and to other
things - that you would have them just not go ahead
with those?
H.M.JR: I would have them mark time for another
week and make it up at the other end, that is all. Do
you agree with me?
MR. BELL: I do.
MR. ODEGARD: Of course, there are some things -
of course, you lose out. That is, deadlines are con-
stantly coming up.
H.M.JR: I can't help it.
MR. ODEGARD: Once you get out of papers you have
difficulty getting back into them.
H.M.JR: I can't help it.
Secretary
50
EXPENSES OF LOANS
February 25, 1943
To Presidents, Federal Reserve Banks:
Boston, Mass.
Chicago, Ill,
New York, N. Y.
St. Louis, Mo.
Philadelphia, Pa.
Minneapolis, Minn.
Cleveland, Ohio
Kansas City, Mo.
Richmond, Va.
Dallas, Texas
Atlanta, Ga.
San Francisco, Calif.
Your wire replying to my wire of February twanty-second
received. In order to clarify as to where the authority
rests the second sentence within the quotation is amended
to read as follows Quote Therefore I have this day
requested the Presidents of each of the twelve Federal
Reserve Banks, Treasury Fiscal Agents, to serve as
chairmen of & United States Treasury War Finance Committee
and you will represent the Secretary of the Treasury with
full authority and responsibility in your district to
direct this drive Unquote
(Initialed) D. W.B.
H. Morgenthau, Jr.
Secretary of the Treasury
DWB:NLE
51
February 25, 1943
3:43 p.m.
HMJr:
Hello.
Donald
Nelson:
Hello, Mr. Secretary. I spoke....
HMJr:
It's Henry to you.
N:
Sir?
HMJr:
Henry.
N:
Yes, sir, Henry.
HMJr:
Right.
N:
I called you before lunch.
HMJr:
Yeah, they - I got the message, and they said
I couldn't reach you for awhile.
N:
Well, I - I had to go over to a luncheon with a -
a group of editors.
HMJr:
Right.
N:
But the - the suggestion has come back to me
that I think might appeal to you....
HMJr:
Please.
N:
....and that's Jim Bruce my - we might be able
to pry him loose to help you with that job.
HMJr:
Who?
N:
Jim Bruce. You know him of National Dairy.
HMJr:
No, I don't know him.
N:
Why, I thought you - you worked with him in
H.O.L.C. Don't you - you rem....
HMJr:
Oh, from Baltimore?
N:
Well, his - his - from Baltimore, yes.
HMJr:
No. He's from Baltimore, isn't he?
Regraded Unclassified
52
- 2 -
N:
That's right. He - his home 1s near Baltimore.
HMJr:
I didn't know he went with National Dairy.
N:
Yes, he's been with them now about two years, and
while there might be some difficulty prying him
loose, we might be able to pry him loose - - help you
pry him loose. We think he's a crackerjack of a
man.
HMJr:
Yeah.
N:
Now either one of the other two men at the moment
would be awfully difficult to take out of this
organization.
HMJr:
Well, I don't know anything about Jim Bruce.
N:
Well, I thought you knew him.
HMJr:
Well, I may....
N:
I'm sure that your people do, because he's done a
lot of work with your organization. He was with
H.O.L.C. for awhile, and did & lot of work with
your organization.
HMJr:
Well, I remember the fellow, yeah, I do.
N:
He's....
HMJr:
I didn't know - I didn't associate him with National
Dairy. His - well, his - was it his brother married
Mellon's daughter....
N:
That's right.
HMJr:
What?
N:
That's. - I think that was it.
HMJr:
Yeah.
N:
His brother, Howard.
HMJr:
Yeah.
N:
Howard 1s down here, by the way, working in the - -
in the War Department.
53
- 3 -
HMJr:
Well, let - let's - let's not just talk about
Bruce first. (Laughs)
N:
Well, but - I mean these two men - we're right
in the midst of a - of getting this organization
back to functioning again, and it would juet be R
terrific handicap to take either one of these two
men if there's somebody else that can do the jab
as well.
HMJr:
Yeah. Well, I - - I - I hadn't thought of - I
mean Bruce, as far as I know, he's had no sales
experience.
N:
Oh, yes, I think you - I think you'll find he
has a lot of sales experience. I think you'll
find that he has sold just this type of thing.
I wish - I would appreciate it if you'd look
into it, merely because we think that he's a
crackerjack of a man.
HMJr:
Yeah.
N:
And either one of these other two men would -
would cripple us badly any time during the next
month or two.
HMJr:
Well, is - is Robbins - I didn't gather from
Robbins that he was doing anything very important
over there.
N:
You see, what we've had to do is to reshuffle
some of the responsibilities
HMJr:
Yeah.
N:
....and we're thinking of building very strongly
on him. As B. matter of fact, I could tell you
what -- I wouldn't like to talk to you about it
over the phone -- just what organizational
change 1s expected to take place, and he's
important in it.
HMJr:
Yeah. Well, I!ll inquire about Bruce.
N:
W111 you do that?
HMJr:
Yes.
54
- 4 -
N:
Well - because I'm - I'm sure that you'll find him
a very capable fellow. In fact, I wouldn't
hesitate to take him. We haven't done it, but -
because the company would be reluctant to do it,
but I think we can pry him loose.
HMJr:
Well, what - you don't know what position he holds
with the National Dairy?
N:
He's a vice president.
HMJr:
Vice president. I Bee. Okay. Well, you'll be
hearing from me again.
N:
All right, sir.
HMJr:
I haven't let up yet.
N:
All right, Mr. Secretary.
HMJr:
Thank you.
N:
Goodbye, Henry.
55
February 25, 1943
4:05 p.m.
Operator:
Go ahead.
HMJr:
Hello.
Clarence
Francis:
Hello, Mr. Secretary.
HMJr:
How are you?
F:
Well, I'm first-rate. I hope you are.
HMJr:
I'm fine.
F:
Good.
HMJr:
Mr. Francis, let me tell you a little problem
I've got. We've been looking around for some-
body, a real salesman, to help us on this
war financing.
F:
Yeah.
HMJr:
and Mr. Robbins - your Mr. Robbins - was
one of the people who's been recommended very
highly.
F:
Uh huh.
HMJr:
I had Robbins over the other night to talk
with me, just informally, and I think he's
the kind of fellow that would be extremely
helpful to us - hello?
F:
Yes.
HMJr:
I've been talking with Don Nelson about him,
and naturally Nelson doesn't want to let him
go....
F:
Uh huh.
HMJr:
although up to very recently, I don't think
that they've given Robbins very important work
down there.
F:
Not since the change.
56
- 2 -
HMJr:
Now I didn't tell Robbins I was going to call
you because I didn't think there was any use
in going any further until I had talked to you
because I understand you're paying him a salary
and you're still his boss.
F:
Yes, (laughs) that's right.
HMJr:
Now the thing that we've got here - we're trying -
we've had this Advertising Council who've worked
with us, you know?
F:
Yes.
HMJr:
And they've recommended very strongly that at
this stage on these Government drives that we
need a man who knows how to handle salesmen and
sales organization, and he's been on this little
informal group with Grant of General Motors
F:
Yeah.
HMJr:
and has come in here, and while I've never
offered the thing to Robbins, he looks at it
as a great challenge, which it 1s. It's one of
the greatest selling jobs in the world.
F:
Yes.
HMJr:
And we need professional salesmen to help us out
and sales brains, you see?
F:
Yeah.
HMJr:
Now I've - the reason I'm calling you is that
I'd like you to think about it. I'd like, if
you would, to have a talk with Robbins.
F:
All right.
HMJr:
And, as I told Nelson, after all his department
and mine are both working for the same man al-
though sometimes the people kind of forget it.
F:
Yeah, yeah.
HMJr:
I mean that we're all working for the Commander-
in-Chief.
57
- 3 -
F:
Correct.
HMJr10
Now I don't want to have to go to the President
and say - tell him - let's say he decides that
Robbins is the man and he should direct him to
go from one to the other, because I don't want
anybody to come unless they'd like to come, you
see what I mean?
F:
Yes, definitely.
HMJr:
I mean I - I want him to feel this is what he'd
rather do than - for the Government than anything
else and it's the best job he could get.
F:
Well, you can rely on Bill on that, if he said
that, why
HMJr:
Well, he hasn't said that.
F:
Yeah.
HMJr:
Because I - - I haven't made him a. definite offer
and I wouldn't until I talked to you.
F:
Yes, sir, I see.
HMJr:
But he did say he considered it a great challenge,
and
F:
Well, now tell me something about this. Could he
be retained on the same basis? Have you any rules,
regulations, or restrictions about dollar-a-year
men?
HMJr:
Uh
F:
In this capacity.
HMJr:
As far a.8 I know - that we haven't.
F:
Uh huh.
HMJr:
I - I don't know of any rules or regulations.
F:
Well, I - - I presume you would make them. I just
didn't
58
- 4 -
HMJr:
Yes, I talked to
F:
Secretary Wickard has. He has decreed that he'll
have no dollar-a-year men.
HMJr:
Well
F:
And it makes it very difficult, in my judgment,
for him to get men.
HMJr:
Well, here's the point. I would much rather have
a man come down here and work for $8 or $9 thousand
dollars for us.
F:
Yeah.
HMJr:
I quite frankly wouldn't take an investment banker
and have him come down here and keep his salary
from his firm.
F:
Yeah, yeah.
HMJr:
But what the hell good 18 the Treasury to General
Foods?
F:
No.
HMJr:
What?
F:
No - yeah, I see your point.
HMJr:
I mean I wouldn't take a banker and have him come
down here and work for me and have the bank pay
him.
F:
Of course, there's one thing that you might -
that you might want to do and that's the way Joe
Eastman works, and that is if there is any
benefit in getting him on the payroll, 8.8 -
as Joe Eastman seems to think
HMJr:
Yes.
F:
fix him on the payroll but still permit the
company to pay him the difference.
HMJr:
I see.
59
- 5 -
F:
Do you see?
HMJr:
Well, that part - I went into it with him. I did
talk to him - I mean I never met a man who answered
my questions as frankly as he did.
F:
Yeah.
HMJr:
He's one of the frankest, most direct fellows I've
ever met.
F:
Oh, yes.
HMJr:
And I like him.
F:
Yeah.
HMJr:
I asked him about it, and he said, well, he could
but it would be a great sacrifice. He's got four
children in school and all the rest of that thing.
F:
Yes - he has some income.
HMJr:
And he told me he had some income.
F:
Yeah.
HMJr:
I would rather, all things being equal, have a man
come down here and - and sever his connections.
F:
Yes, I can see that.
HMJr:
I've reached the point - I mean I'm doing something
now which I've never done before, I'm taking the
man with the best training to do a highly technical
job for me.
F:
Yes.
HMJr:
Now in order to get it - - well, I can't make my
rules too stiff. I might just as well be honest
about it.
F:
Now how long - how long a time....
HMJr:
I mean I wouldn't - hello?
60
- 6 -
F:
....now are you talking months or years or....
HMJr:
Well, if he comes I'd like to have him see me'
through until my term, which is a little less
than two years now.
F:
Woo, woo, woo! Two years of it - 1s - would
that be a positive stipulation. That may make
it difficult.
HMJr:
Well....
F:
Or
HMJr:
Well, don't
F:
Is that....
HMJr:
Don't you think this, Mr. - if a man gets down
here, he's not going to be much good to me for
the first three months.
F:
No, but I was thinking, for instance, suppose we
said for the balance of this year and then take
a look at it
HMJr:
Well, that
F:
....and see what the conditions are, and under
no conditions, of course, would he leave unless
he had somebody to carry on.
HMJr:
Well, that's fair.
F:
Huh?
HMJr:
That's fair.
F:
Yeah, I - - I think a two-year commitment 18....
HMJr:
Well, that's fair - I mean....
F:
Huh?
HMJr:
That - that's fair.
F:
All right.
61
- 7 -
HMJr:
That's fair.
F:
All right, and that's through - through 1943 and
then look. I'm just making a note on this, and
see - well, now all right, Mr. Secretary, let's
do this. I'll - I'll talk this over with - with
my associates here. I've got to see just what
their plans were because I know they had some
thoughts with this possible change over there --
with the Eberstadt situation -- that Bill might
find himself in a - well, relieved after sixty or
ninety days or something of that sort. You never
know which way the wind will turn. So let me
check it over with him. I'll talk with Bill, and
when - when would you like to hear from me?
HMJr:
I'd like to hear from you by forenoon tomorrow.
F:
Oh-oh! All right, all right, we'll do it.
HMJr:
Forenoon tomorrow.
F:
I'll do it.
HMJr:
Now when you call, will you call me on District
2626?
F:
District 2626.
HMJr:
Yes, that goes right to my own telephone operator.
F:
I'll do that before noon tomorrow.
HMJr:
If you - and I didn't tell him I was calling you.
F:
I see.
HMJr:
Do you think I should? Maybe it would be nice.
Hello?
F:
Yes, let's do that.
HMJr:
Should I tell him I called you?
F:
Let's - let's do that....
HMJr:
Yes.
62
- 8 -
F:
....and are you going to get him now?
HMJr:
I - - I can, or do you want to get him?
F:
No. Why don't you tell him that and ask him if
he'll call me at my home about seven o'clock
tonight.
HMJr:
To call you at your home about seven tonight.
F:
Yeah.
HMJr:
I'll do that.
F:
Fine, and I'll call you before noon tomorrow sure.
HMJr:
If you please.
F:
Fine.
HMJr:
Thank you.
F:
Goodbye.
63
February 25, 1943
4:15 p.m.
HMJr:
Hello.
Operator: Mr. Robbins.
HMJr:
Hello.
W. M.
Robbins:
Yes, good afternoon, sir.
HMJr:
Good afternoon, Mr. Robbins. I've done some-
thing that I hope is not displeasing to you.
I've just called up Mr. Clare Francis
R:
Yes.
HMJr:
and told him my little story and also told
him that I've been talking with Donald Nelson
and have got nowhere - hello?
R:
Yes.
HMJr:
And that I felt that after all he was paying you
your salary (laughs), and had something to say
about where you would work.
R:
That's correct.
HMJr:
Also, in the final analysis, Mr. Nelson also
works for the Commander-in-Chief the way I do,
and while - 80 in the final analysis I could go
to the President.
R:
Yes. (Laughs)
HMJr:
Well....
R:
I - I don't get the significance, Mr. Secretary,
of - you say you got nowhere with Mr. Nelson.
HMJr:
Well, I - - I asked Nelson about you.
R:
Yes.
HMJr:
I mean I said we - we've been talking, nothing
definite, but how would he feel about your coming
over here.
64
- 2 -
R:
Yes.
HMJr:
Well, suddenly you're very, very important.
R:
(Laughs)
HMJr:
See? (Laughs) I hope you don't mind my saying
that.
R:
(Laughs)
HMJr:
And they've got great things in store for you
R:
Uh huh.
HMJr:
....now that I've put my finger on you.
R:
Oh, my !
HMJr:
And - and BO he comes along and recommends some-
body else who we've checked here. He's just a
third or fourth-rater.
R:
Uh huh.
HMJr:
It's ridiculous and I'm angry - and I got angry
and I called up Mr. Francis while I was angry -
I mean because I didn't think it was fair that
they should recommend somebody else who - well, I
just wouldn't give him any job in the Treasury.
R:
Uh huh.
HMJr:
And....
R:
You're entitled to - - of course, I've - I've been
close enough to this, Mr. Secretary, to realize,
I think, and have an appreciation of what you're
entitled to.
HMJr:
Well, I'm entitled to the best.
R:
My great doubt 1s whether I can fill that bill.
HMJr:
Well, now Mr. Francis would like you to call him
up tonight at his home at seven o'clock.
R:
All right.
65
- 3 -
HMJr:
And he said he - as far as the Jompany is
concerned, he'd give me an answer by forenoon
tomorrow.
R:
Uh huh. All right, sir. Well, now I - - I will
call him.
HMJr:
Yes.
R:
....and - well, then - then where do I stand?
HMJr:
Well, then after he - after you've talked to
him he's going to call me tomorrow.
R:
I see.
HMJr:
Then I want to get together with you and really
talk business.
R:
All right.
HMJr:
See?
R:
All right.
HMJr:
I mean we haven't really talked business yet.
R:
No, we really haven't.
HMJr:
But there was no use in my doing that. I thought
I should ask Mr. Nelson, and he's given me the
run-around; and I talked to Mr. Francis and he's
talking business. He understands and he asked
me a lot of questions, all of which I answered.
R:
Uh huh, uh huh.
HMJr:
How long and all the rest of that.
R:
That's right.
HMJr:
And he said that from the company standpoint
what they'd say would be - they agreed it would
be the balance of this year, and then have a
fresh look at it the first of next year.
R:
Uh huh, uh huh.
66
- 4 -
HMJr:
Then he asked me about your salary and all of
that. We - we went into the whole business.
R:
I see. Well - well, sir, I'll - I'll call
Clare - Clare Francis
HMJr:
Yes.
R:
....and I can do it either now or later this
evening. He suggested at his home at seven?
HMJr:
That's what he suggested.
R:
Well, then I'll do it that way.
HMJr:
And then I told him that we just had an informal
talk and hadn't arrived at anything, and - but
now that - I wanted to get more formal and that -
80 he said to talk to you, and he thought it
would be nice if - I said I wanted to tell you
about it and he wanted me to talk to you.
R:
Yes, yes.
HMJr:
So - and I might say that Mr. Bell was extremely
well impressed after he had talked with you.
R:
Yes, we had a nice visit together.
HMJr:
Right.
R:
A nice visit together, and I enjoyed very much
meeting him.
HMJr:
Okay.
R:
Well, then after - well, you will hear then
HMJr:
After I hear from Mr. Francis, then I'll call
you.
R:
All right.
HMJr:
Right.
R:
Thank you very much.
HMJr:
Right.
R:
Goodbye.
67
February 25, 1943
To:
Secretary Morgenthau
From: Mr. Thompson
Referring to your request for information
on the amount of funds available for promotional
activities in connection with the sale of Govern-
ment securities:
After allowing for continuance of present
activities of the War Savings Staff and the
Victory Fund Committees at approximately their
current levels, it appears that $3,000,000 can
be made available for promotional activities
incident to the April drive.
Up to $1,500,000 of this amount could be
used for printing within statutory limitations.
Otherwise the $3,000,000 could be expended as
you might direct, for radio, motion pictures,
newspaper advertising, etc.
The $3,000,000 has been computed from existing
allotments as follows:
War Savings Staff
$2,000,000
Victory Fund Committees
1,000,000
Total
$3,000,000
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE February 25, 1943
TO
Dr. Harry White
FROM
Secretary Morgenthau
Effective this date, I would like you to take supervision over
and assume full responsibility for Treasury's participation in all
economic and financial matters (except matters pertaining to depository
facilities, transfers of funds, and war expenditures) in connection
with the operations of the Army and Navy and the civilian affairs in
the foreign areas in which our smied forces are operating or are likely
to operate. This will, of course, include general linison with the
State Department, Army and Navy, and other departments or agencies and
representatives of foreign governments on those matters.
In the above connection, you will, of c. urse, keep Under Secretary
Bell advised with respect to All matters affecting gold, coins, coinage,
currency, or rates of exchange. You will also consult with Mr. Paul
or Mr. Luxford and Mr. Pehle in all matters which come within the juris-
diction of the Foreign Funds Control.
Regraded Unclassified
TREASURY DEPARTMENT
69
INTER OFFICE COMMUNICATION
DATE
FEB 25 1943
TO
Secretary Morgenthau
FROM Mr. D. W. Bell
You will recall that at a recent meeting of
Senator Byrd's Committee on the reduction of non-
defense expenditures Senator Nye criticized a
procurement transaction of the War Department
involving the purchase of a number of railroad
cars equipped for hospital or medical purposes,
and indicated that it was his understanding that the
Procurement Division of the Treasury Department
required the Surgeon General's office to purchase
cars from a particular company, even though such
cars were higher priced and involved higher operating
costs.
Senator Nye was apparently confused, inasmuch
as we cannot find that the Procurement Division was
ever involved in any such transaction as he described.
I have written letters to Senators Nye and Byrd,
copies of which are attached, and I believe that
this is all we need do about the matter.
DWB
Enclosures
2 carbon copies
70
FEB 25 1943
My dear Senator:
My attention has been called to a matter discussed
briefly during a recent meeting of the Committee on the
reduction of non-defense expenditures hold February 10,
1943.
Although as stenographic resord of the meeting
vas nade, ay information is to the general effect that
you described a transaction involving the purchase,
by the office of the Burgeon General of the Var
Department, of a maker of vailred care equipped for
hospital or medical perposes, and suggested that the
Committee night well Leek 1999 this particular transac-
tion. You seem to be under the impression that the
Precurement Division of the Treasury Department insisted
that the Burgeen General's office doal with a particular
company and purchase a particular type of equipment,
OTHER though another available type which had lever
operating cents, could have been procured at a lever
price,
I have checked into this matter very carefully,
and an unable to find that the Procurement Division of
this Department participated in say degree in the
transaction to which you refer. I - confident that
further investigation will demonstrate that the matter
was handled entirely in the War Department and that the
Proverement Division of the Treasury Department was not
involved.
Sincerely yours,
151 ow Bee
Vader Secretary of the Treasury.
Non. Gerald 2. Rye
United States Senate
Vackington, 2. a
JJO'0JR/lsw 2-22-43
WTH:mlb 2-24-43
Regraded Unclassified
71
FEB 25 1943
My dear Senstor:
I on enclosing a copy of & letter I have
just sent to Senator Eye. Its contents are
self-explanatory, and the letter is sent you
in order to correct any mistaken impression
with which you may have been left as a result
of Senator Eye's remarks at the meeting of
your Committee on February 10.
Sincerely yours,
/SID.W. Beee
Under Secretary of the Treasury.
Home Harry Flood Byrd
United States Senate
Washington, D. c.
Enclosure.
JJO'C.Jr/1sw
2-28-43
72
Mrs. Klotz
Will you give the Secretery
the atteched, please, as a
suggestion for press
conference?
@
@Ar
FROM: MR. SCHWARZ
TREASURY DEPARTMENT
73
INTER OFFICE COMMUNICATION
DATE 2-25-43
TO
Secretary Morgenthau
FROM
Mr. Schwarz
s
The Treasury's Procurement Division is planning
to ask to be allowed to intervene in the electric rate
hearings scheduled to be opened next week by the local
Public Utilities Commission and to contend that the
costs to consumers in the District of Columbia area
are unreasonably high. As the purchasing agent for
electricity for practically all Federal activities
in the District, the Procurement Division last year
was billed for approximately $4,000,000 by the Potomac
Electric Power Company and its affiliates. Further
discussion should be reserved until a petition for
intervention is filed.
74
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
TO
Secretary Morgenthau
February 25, 1943
FROM
Frances McCathran
CONTROVERSIAL ISSUES BEFORE CONGRESS
1. Tax: Ruml Plan - Plan to force Congressional vote on the
Ruml plan by discharging the stalemated House Ways and
Means Committee of further responsibility in drafting
pay-as-you-go legislation was indicated to be gathering
force on Capitol Hill yesterday. Republican representatives
especially appeared to be strongly in support of the move.
In the House Ways and Means Subcommittee, too, Republican
members, Knutson and Reed urged that one of two actions be
pursued immediately: (1) The Ruml Plan or something similar
be submitted for the full committee's approval; or (2)
Knutson's plan of working out pay-as-you-go legislation now
and deciding what to do about 1942 taxes later, be adopted.
2. Manpower - As rumors persist of labor and manpower shake-
ups, WMC McNutt again was rebuffed in Congress yesterday
when the House Appropriations Committee slashed his request
for $2,454,000 from the Deficiency Appropriations Bill.
He needed the money, McNutt told the committee, for the
U.S. Employment Service whose wages, below the Federal
wage scale, are causing large numbers of the employees to
leave. If this agency fails in its program of transfering
workers from nonessential jobs to war work, he will know
"where. the reason is" McNutt added, But Congressman
Taber resented the statement as a "threat". The Department
of Labor also was refused $337,000 in the Appropriations
Bill. In subcommittee hearings Secretary Perkins, who said
the funds would be used for improvements in plants which
she thought would be a cure for absenteeism, was told by
Representative Johnson of "deep-seated feeling" that she was
"not very much disturbed or even concerned" about "the
shocking situation of absenteeism in the various industries",
The Labor Secretary also felt called upon to assure the
Committee that she had never "encouraged strikes" but in-
stead believed "methods must be developed" to prevent them.
C,
National Resources Planning Board - The Deficiency
Regraded Unclassified
75
Appropriations Bill was also a. disappointment to the NRPB.
Extra funds for this agency were postponed until Congress
could decide whether to continue the life of the board
next year, even though the House has already voted down
its regular funds.
4. The Farm Issue - Reiterating the policy of incentive pay-
ments instead of raising farm parity, Secretary Wickard
yesterday asked for "a clear mandate from Congress immedi-
ately" for his Food-For-Freedom production program.
Representative Dirksen, however, said that. what the nation
needs is a "good tough food Ozar" who will "slug it out
with social reformers" like McNutt and Farm Security Ad-
ministrator C. B. Baldwin. There was no evidence to indicate
that Wickard would do the job, he added.
5. McKellar Bill - Bitter debate for almost 2 hours between
Senators Hatch and Wheeler in the Senate Judiciary Commit-
tee delayed until Monday final vote on the McKellar Bill,
requiring, with certain exceptions, Senate confirmation of
Federal appointments receiving $4,500 or over. Hatch said
the bill would be "completely distructive of the merit
system" and "the greatest setback of the civil service which
has transpired in many years". But Senator Wheeler claimed
that in the last few years the Civil Service System had
"practically been destroyed" anyway.
76
AGENDA
20 BOARD OF ECONOMIC WARFARE DOWN
TO BE HELD WARY 25. 1943 AT 10:00 A.N.
ROOM 201, THE OFFICE
Discussion of "Report to the Board of Economic Warfare
Regarding Merchant Shipping Services to the Other
American Republies". (Copy attached.)
copy 3
2/23/45
SECRET
77
Report to the Board of Economic Warefare
Regarding Merchant Shipping Services
To the Other American Republics
At the meeting of the Board of Economic Warfare of
January 14, 1943 a subcommittee was appointed to report
on the export shipping situation to the other American
republics, with particular reference to the programming
of materials for projects in which the United States is
especially interested in relation to the purely civilian
requirements of the other American republics.
At the mecting, Mr. Lewis W. Douglas, Deputy War
Shipping Administrator, stated that the present target
tonnagos of merchant shipping for the other American
republics represented the maximum tonnage which could be
expected unloss ships were to be divorted from military
theatros. The represontatives of the War and Navy Depart-
ments indicated that no such diversions were possible. It
thus appeared that only by a decision on the highost policy
lovel could any additional tonnage be made available for
the other American republics, and the subcommittec was, by
implication at least, influenced by this factor in the
range of its possible conclusions.
Aspects of the Shipping Problem
There appear to be three chief aspocts to the ship-
ping problem:
(1) The recommended minimum programs of shipping
to each republic with commodity and project
breakdowns - the targot programs within the
limits of available shipping.
(2) Administrativo mochanisms for insuring that
the available vessels are loaded in accordance
with the programs.
(3) The gearing of production in the United States
to match the export shipping programs - which
involves the backlog problem.
This
таяза
- 2 -
This report of the subcommittee will undertake to
consider only the first problem - the expression of our
export and shipping policy towards the other American
republics in concrete terms through the target programs.
The other two aspects are obviously of an administrative
character, and while difficult, flow out from the broader
policy decisions involved in the first point.
History of the Target Programs
In May 1942 the Board of Economic Warfare considered
a report on merchant shipping policy with respect to the
other American republics which outlined the broad factors
to be considered in determining such policy. During the
month of June there were prepared the first target programs-
for the east and west coasts of South America - and the
Priorities and Allocations Advisory Committee to the Com-
bined Shipping Adjustment Board on June 9 and Juno 26
accepted these targets as goals for ship allocations.
Target programs for the Caribbean countries were delayed
in preparation, as the problems were of quite a different
nature and the naval routing consideratione during the
summer of 1942 made determinations much more difficult. It
was not until December 1942 that complete target pro-
grame for ench of the American republics were announced,
by the War Shipping Administration. These target tonnages,
which are still in effect, are indicated in Table 1.
The only factors taken into consideration early last
summer in preparing the proposed target tonnages were the
civilian requirements of the countries in question, in-
cluding coal requirements. The discussion at the meeting
of the Priorities and Allocations Advisory Committee to
the Combined Shipping Adjustment Board on June 9, 1942
specifically pointed out that no Lend-Lease or Pan American
Airways cargoes were included. Since that period there
has occurred, in the case of a number of the American repub-
lios an extromely large increase in special demands for
shipping, including Lond-Lease tonnages for military equip-
mont, the rubber program in the Amazon Valley and elsowhere,
coppor and other mining developments put forward by the
Office of Imports of the Board of Economic Warfare and
the Metals Reservo Company, the air transportation program of
the Defenso Supplies Corporation, other strategic materials
projects
Regraded Unclassified
78
3 -
projects such as quartz crystal and mica projects, and
requests of the Potroloum Administrator for War for 10-
pressive quantities of materials for the maintenance and
extension of petroleum operations in the several petroleum
producing And refining countries. In Central America the
War Department has requested considerable tonnages for
materials and equipment for the carrying out of the pioneer
road project.
Morcover, in certain of the other American republics
projocts of local intorest long under discussion and in
preparation have developed to the voint where largo quan-
tities of finished products are boing turned out for ship-
ment to the countries in question.
The original targots took into consideration virtually
none of these special domands, although some have moved be-
cause reductions have boen found possible in a number of
civilian supply items.
Since preparing the original targets, some modifica-
tions have been made by agreement among the War Shipping
Administration, the Board of Economic Warfare, and the
State Department. The original Brazil program WAB broken
down into 70,000 long tons of coal and 28,000 long tons
of general cargo. Beginning in January of this year, the
breakdown was altered to 50,000 tons of coal and 48,000
tons of general cargo. Thus within the original target
total savings in coal consumption have mado possible a
measure of reliof for the excoodingly great demands made
upon the general cargo tonnngo by the Brazilian lend-loase,
Brazilian steel mill, Itabira, Rubber Reserve, and several
other programs.
Similarly, some other more minor adjustments have been
made in the targets for other republics and in the case of
a number of the smaller countries the total target has been
altered slightly from time to time.
Statistics of Shipping to the Other American Rebublics
There are attached Tables 2,3,4, and 5 based on the data
of the War Shipping Administration indicating tonnage shipped
during 1942 and January 1943 to the several American republics.
In analyzing these figures there are a number of points which
should be kept in mind:
Shipmonts
Regraded Unclassified
4
Shipments to the land-locked countries of Paraguay
and Bolivia do not appear soparatoly but are included with
those to Argontina or Uruguay and Chile rospoctively.
In addition, shipmonts to El Salvador through Puerto Barrios
may appear in the Guatomala statistics, and shipments to
the Canal Zone and to the Republic of Panama are hopclossly
confused. Cortain other transshipments involving two countrics
may occur in n limited number of instances, A8 the War Ship-
ping Administration statistics indicate the port of discharge
rather than neçossarily the final dostination.
It will be noted that those figures indicnto that in
general the lovol of targot programs has not been attained
in connection with Brazil, Peru, Ecundor, Colombia, Costa
Rica, Nicaragua, El Salvndor and Vonozuela. It should bo
notod that complete shipping programs for the last five
countrics mentioned were not finally dotermined until
December 1942. The statistics do not permit an adequato
appraisal of the situation with respect to Bolivia, Para-
guay and Panana.
On the other Hand, the statistics for December, and
tho proliminary partial figures for January indicato a.
great improvement in the situation of Peru, Colombia,
Costa Rioa, Nicaragua, El Salvador and Vonozucla. In
Decomber, the Inst month for which complete figures are
available, the targot programs were met or excooded in
practically all of the countries except. the Enst Const
of South America. Proliminary information indicates that
the shipping tonnagos are boing rathor well naintained
in Fobruary as woll. Colombia, which has been a vory
difficult problem, will again in February receive con-
sidorably more than its targot tonnago, thus making up
further for somo of the vory low months in the late fall
of 1942.
In appraising these results a number of factors should
be kopt in mind:
(1) The extromoly difficult and changoable situations
with respect to submarino warfare, naval routings
and convoys in the Caribbean and East Coast trades.
(2) The failure of Brazil to keep its vossels in
efficient "poration. In the last six months
only one Brazilian vossel a month has cleared
United States ports. This situation appears to
be improving, as the War Shipping Administro-
tion is placing into service the thirtoon
Brazilian
Regraded Unclassified
79
IS I I
Brazilian vessels which it has chartered, and
Brazil 1s placing into operation approximately
twenty-two vessels which it has committed to
the United States trade. These developments
will render more probable the attainment of
the 98,000 ton target in coming months.
(3) The failure of some other American republics
to make the most efficient use of their
vessele. Attempts are being made to improve
the situation by charter and by agreement.
(4) At the end of the year the port of Buenaventura,
Columbia, was badly congested following railway
washouts which, along with routing problems in
the Caribbean, complicated the delivery of goods
to Colombia.
Shipping Requirements - The Case of Brazil
There are attached (Appendix A) the breakdowns of the
target programs submitted for the month of March to the War
Shipping Administration by the Board of Economic Warfare and
the Department of State for each of the American republics.
Perhaps the most difficult problem, and certainly one which
illustrates all of the policy considerations involved, 18
that of Brazil.
The Brazil program PB submitted for March is mede up
roughly 88 follows:
Coal
50,000
Civilien requirements
20,100
Rubber Reserve program
10,000
Itebire
4,000
National Steel Mill
2,400
Other projects
1,400
Lend-Lease
7,600
Tinplate for British
mest-pack
2,500
Total-
98,000
The target tonnage for coal hes been reduced from
70,000 tons per month to the present figure of 50,000
tons. Shipments in the last e1x months have overaged 39,800
tons, At the level of 50,000 tons, the principal consumers
ere the Lloyd Brasileiro for bunkering, the goe companies,
the Brazilien Novy and importent Brazilien railways.
It
Regraded Unclassified
- 6 -
It 18 the firm conviction of the requirements officers
in the Board of Economic Werfare and the Department of State
that the civilian requirements have already been sleshed
below the minimum desiroble level which should be considered
25,000 tons.
The Rubber Reserve figure is below that deemed 08-
sential by the Rubber Reserve Company for the mere carrying
out of their present program and the necessities for sup-
plying the lerge number of workers being moved to the
Amazon in accordance with the recent agreement with the
Brozilion Government. There is attached (Appendix B) e
separate memorendum prepared by the Rubber Reserve Company.
The Rubber Reserve requirements may be summerized AB followe:
February
17,863
Merch
15,548
April
14,000
May
13,250
June
11,600
#
July
3,900
*If tenkage will be ready by July, June
ehipments of potroleum products, can be
mode in bulk.
The 4,000 ton rate for Itabire 18 not sufficient to
take up meterials being delivered for shipment in PC-
cordence with the program determination of the Wer Production
Board. A figure of pt least 6,000 tons for the next three
months would be required for the purpose, and P figure of
5,000 or 6,000 tone F month thereefter.
The tonnage requirements of the National Strel Mill
project, to which the Brazilien Government attaches no. 1
priority, PS indicated in en Executive Decree of the
President of Brozil, will overage slightly over 5,000 tons
E month for the next two years if carried out OR plenned.
While certain of the projects included in the "Other
projects" cetegory are being completed, other projects still
in the mill, including large quentities of metoriele for the
disappeerence. Central Reilway of Brazil, will more then make up for their
Although
Regraded Unclassified
80
7
Although the Lend-Lease shipments in March contain
an exceptionally heavy. item of meterials for the sirplane
engine factory, direct military equipment has been entered
at e very low figure, end to dete less then 10% of the
totrl Lend-Lease program hos been delivered. The Govern-
ment of Brezil attaches no, 1 priority to Lend-Lepse mill-
tery shipments, PB well AB of the National Steel Mill.
No requirements Are listed for the Prn American Airweys
since errongements have been mede for the Army to transport
the 1100 tons of cargo for this purpose.
It 18 obvious that Pll of the listed requirements of
Brazil can not be scheduled PB planned within the existing
target shipping progrem even if that terget 18 met,
Policy Considerations
1. The United States feels that materials for EB-
sential import progrems must receive adequate opnsideration
in the distribution of shipping space.
2. Military necessities of the other American
republics must move.
3. Civilian requirements of the other American repub-
lice must move in amounts sufficient to mrintain public
health and order, and to permit st least D minimum level
of conomic activity. The maintenance of such e level of
economic activity, and resulting political end social
stability mey be of the greatest importance to the prose-
cution of the war, to our own military plans, and to the
production of essential stretogic matericle.
4. Certain projects of somewhat 1088 direct wor
significance may enjoy P local position of overwhelming
importence.
5. At least An important part of the total tohnege
to be moved must the carried in vessele of the country in
question. The terget tonneges include tonnegee of Pll
flegs. The Wer Shipping Administration hre been removing
ite own vessels 88 local tonnages come into the trode,
and conversely attempting to meke up the gape fe loosl
vessels have been sunk or have feiled to operate efficiently.
6,
Regraded Unclassified
- 6 -
6. The target tonneges for South America nt least
were announced some time rgo. At that time they came EB
8 distinct shock to the countries in question, end in ad-
dition these countries have come to feel that their 08-
sential civilien requirements would be hendled within the
target figures. Although it he's elways been mode clear
that the exigencies of war might force reductions in the
tergets and in performence, the encroschment of United
States end other projects, end militery supplies, not
only effects 8 real reduction in the amount evoilable
for civilien requirements, but reises psychological and
political questions.
7. Where the torgets are already tight, the failure
to perform reises additional problems of priority of
several types of corgoos, it 18 clear that United States
project materials can not in all cases be accorded first
priority, end the wishes of the Governments of the other
American republice must be given every precticable con-
sideration.
The Case of Brozil Agein
Returning to the CPBP of Brazil, we find that projects
not originally given much or any consideration - nemely,
the Rubber Reserve, Itebire, Steel Mill end Lond-Lerse
programs - have in March been tentatively allotted a total
of 24,000 tone or more than P quarter of Brezil's total
terget tonnage.
Calculated requirements for these four programs for
Merch ere even greater - about 34,000 tons. Moreover,
there 18 no merked bunching of requirements except in the
0886 of Rubber Reserve which has special non-recurrent
requirements everoging to over 11,000 tone in February,
March, April and Mey.
It mey be leid down 88 definite that the Government
of Brezil regards AB of first priority the shipment of
Lend-Lesse end Steel Mill metericle. President Vorges
hes ordered Lloyd Brasileiro if necessary to drop fll
other cargoes in order to cesure that theer are carried.
The Itobire project WAR initieted by the United
States end Great Britein to pasure 8 supply of high-grade
iron ore - especially for Great Britcin. Brozil's interest
hes by these efforts been eroused end & large amount of
Brazilion capital has been invested in the project.
The
Regraded Unclassified
⑉9⑉
The Rubber Reserve program is similarly primarily
of United States interest but is also of concern to Brazil
as the continuing tonnages of cargo are for the maintenance
of Brazilian workers in the Amazon, including the 50,000
now being transported to that area by arrangement between
the two Governments.
Other Countries
No attempt will be made in this report to analyze in
detail each country program. There is attached, however,
Table 6 indicating the distinguishable tonnages included in
the March 1943 programs. A great deal of reservations must
be adopted in using this table, as it includes projects
both of interest to the United States and to the countries
in question, and, moreover, the line of demarcation between
a project of interest to the United States and one of
interest to another republic is almost impossible to define.
Beyond this, the figures probably understate what might
probably be considered to be project tonnages, since a
considerable amount of the coal and other supplies listed
for civilian consumption are for the maintenance of rail-
way operations, public utilities, and other enterprises,
a portion of the activity of which is directly related to
the projects.
Analysis of this table and of the general program
indicates that in many of the republics the targets appear
to be fully workable. This is probably the case in all of
the republics except the South Américan republics, and in
any event, minor adjustments have boen and can be made from
time to time in the small target figures applying to the
Caribbean republics.
Among the South American countries project tonnages
loom large in the casos of Poru, Bolivia and Chile. More-
over, if the roquirements being submitted by the Petroloum
Administrator for War for the second quartor are accepted,
the programs for Venezuela and Ecuador will bo thrown out
of balance, and the situation of Poru furthor impaired.
In the
Regraded Unclassified
-10-
In the caso of Chilo, spocial arrangoments have been
made wheroby the Corporación do Fomonto oporatos ships out-
sido of the targot figuro, and this has rolieved in part
at least the prossuro of tho projects. The Corporación's
tonnago is only tomporary, however, and discussions now in
progross looking toward the maintonance of this oxtra ton-
nago in the trado should bo pressed to a satisfactory con-
clusion.
Tho difficult situation of Colombia has alroady boon
montioned, and the groatly improved dolivorios in January
and Fobruary citod. The problem of Colombia appoars to be
largoly ono of carrying out the targot program rather than
one rolating to the amount of the targot itsolf,
Conclusions:
As a rosult of its invostigation and analysis, tho
subcommittoo prosonts the following recommondations and
commonts:
1.
The subcommittoo bolioves that, within tho
over-all limitations on shipping which have boon
imposod by the oxigoncios of war, the actual por-
formanco in shipping to most of the Amorican
republics is sufficient to maintain thoir civilian
oconomios at roasonable wartimo lovels and also
provido sufficient spaco for tho projects pro-
sontly sponsored by the various governmontal
agoncios. Tho spocial caso of Brazil is takon
up indopondontly.
The subcommittoo furthor boliovos that tho
present systom of consultation botwoon tho War
Shipping Administration, tho Board of Economic
Warfaro and the Department of Stato for laying
down dotailed shipping programs within tho targots
appoars to be working satisfactorily. It rocom-
monds that such consultation bo oxtended to dis-
cussions of such modifications in tho targots
thomsolvos as may appoar dosirable from timo to
timo.
Somo
Regraded Unclassified
81
-11-
Somo of tho mombers of the subcommittee
have suggested an immediate discussion of the
oases of the targets for Bolivia and Peru.
Some of the members of the subcommittee have
pointed out that, although the treatment no-
corded these American republics appears in
absolute terms thus to be satisfactory, there
is no basis for comparison of this treatment
with that accorded in shipping services to
other areas,
2,
Especially in the cases of those South
American countries where the target tonnages
are tight the failure to meet the target tonnages
will result in serious strains unless priorities
are 30 arranged that the project material takes
8 place definitely subordinate to direct civilian
requirements,
Similarly, in the cases of the same South
American republics there is absolutely no room
for expansion of project tonnages at the expense
of the civilian requirements even if the target
tonnages are met.
As a corollary, the Rubber Reserve Company,
the Petroleum Administrator for War, the Board of
Economic Warfare, and any other agoncies which
may propose projects should do so in full realiza-
tion of the tightness of the shipping situation,
and should not sponsor any additional projects or
any increase in the present projects unless these
can be shown to be absolutely essential to the
war effort and, if of largo magnitude, to warrant
divorsion of shipping tonnage from other areas.
Specifically, it is recommended that the second
quarter tonnage requirements put forward by the
Petroleum Administrator for War for Venezuola,
Ecuador, Poru and other petroleum producing or re-
fining countries be studiod within such critoria.
3.
A more detailed recommendation is made for
the case of Brazil. No ontirely satisfactory pro-
gram for Brazil can be worked out within the 98,000
ton target limitation if all of the roquests of the
Rubber Resorve Company and the other projects are
carried out. The only leoway in tho situation
appears to lie in the possibility of reducing tom-
porarily coal shipmonts in spite of the strong
protests of the Brazilian Government, and deferring
temporarily a part of the Itabira and stool mill
shipments,
Regraded Unclassified
- 12 -
shipments, with a view to increasing coal,
Itabira, steel mill and civilian requirements
shipments in June and July as the rubber
program drops off from its spring bulge.
The subcommittee, after reviewing all of the factors,
recommends the following tentative revisions in the March
shipping program for Brazil with the indicated ad justments
to be made in April and May. These recommendations are
based upon the following premises:
a. That a rubber program must be carried out.
b. That lend-lease shipments can not be reduced,
0. That no ono of the other programs can be
climinated entirely.
Recommended Program for Brazil
Coal
43,000 tons (tentative)
The Government of Brazil and the Embassy at Rio
have stated emphatically that no reduction below
50,000 tons can be countenanced although deliveries
in the past have fallen short of this figure. The
Brazilian Maritime Commission has indicated that
bunker stocks are very low and that failure to allo-
cate more coal to the shipping companies may shortly
result in a curtailment of coastal as well as inter-
national services. Nevertheless, it might be possible
during March to get along with shipments at a lower
figure if the position of each consumer is stated
carefully and shipments are made only to consumers
whose stocks permit no delay. Some relief may be
expected from incroased shipments of coal from south-
ern Brazil to principal consumers.
In April and May this figure may be increased to
45,600 tons if lond-lonse shipments docline to 5000
tons a month as suggested below.
In Juno or July, when the Rubber Reserve movement
has subsidod, it should be possible to step the figuro
up to 50,000 tons within the full target tonnage of
98,000 tons.
Rubber
Regraded Unclassified
82
- 13 -
Rubber Reserve
17,000 tons (tentative)
In view of the importance of rubber, the subcom-
mittee was loath to recommend any reduction, but the
subcommittee believes that the tonnage of rubber to
be obtained from the Amazon Basin should be carefully
considered in rolation to tho 75,000 tons of shipping
space required in the next four months to move the
metorials nooded for the furthorance of the program.
Reprosontatives of the Rubber Reserve Company failod
to present to the subcommittoc a justification for
the airport construction and the air transport programs
on the grounds that such program is an intogral and
insoparable part of tho entire rubber program. If
this portion of the program were eliminated it would
result in a saving of about 25% of the shipments
planned for the first four months.
It 18 suggested that the Board consider carefully
the essentiality of this portion of the rubbor program
and the effocts of its climination, a mattor concorn-
ing which the subcommittoe was unable to obtain infor-
mation. It 1s also suggested that the Board rocommend
that every possible step be taken by the Rubber Reserve
Company to the end that petroleum products may be
moved in bulk rather than in drums as is being done
now. (See memorandum of Rubber Reserve Company
attached as Appendix B.)
The subcommittee recommends that the total of
60,000 tons be allocated to coal and the Rubber
Reserve program, and requests the Board to dctermine
whether the air transport program is ossential or
whether the tonnage involved (about 4,000 a month)
should be devoted to coal.
Civilian Requirements
20,000 tons
In view of the obvious importance of this item
and the cuts that have already been made, no comments
are required. At this level each commodity will have
to be given the same careful study as indicated in
the case of the coal requirements. As lend-lease and
rubber requirements permit, this item should be given
priority in increases, and an effort should be made
to step it up to 25,000 tone by June or July.
Tinplate for British Meat Pack
2,500 tons
Itabira
Regraded Unclassified
- 14 -
Itabira
3,000 tons
The engineers have indicated to the Export-Import
Bank that an average of at least 4,000 tons is neces-
sary to insure the carrying out of this program, but
that they of necessity will accept 3,000 tons a month
for B. few months, provided that when some relief is
possible in June or July, the figure 1s stepped up
to make up for this deficiency.
Steel Mill
3,500 tons
In view of the economic and political importance
attached to this project by the Brazilian Government
and the favorable treatment given United States proj-
ects in those recommendations, a out of more than
30% would not seem practical. This is another project
which must be stopped up to make up for this deficiency.
Othor Projects
1,400 tons
Sco program for March attached.
Lond-Loasc
7,600 tons
4,100 tons of this total represents shipmonts for
the airplano engine factory which has obvious military
and political value. It is to be hopod that total
lond-lonse shipments can be limitod to 5,000 tons in
succcoding months, and it is recommended that Army
and Navy reprosentatives give this thoir closest
considoration.
It is recommended that, in view of the Export Control
Docentralization Program now in force in Brazil and other
countries and in view of the obvious and appropriate
interest of the Government of Brazil in this whole matter,
this recommendation not be accepted as final, but as a
tentative suggestion to be placed before Brazil which may
wish to make other modifications in the various projects
of interest to it.
The subcommittee believes that the greatest possible
flexibility should be maintained in the entire system of
fixing shipping and export programs, and consequently it
does not wish to attempt to set the pattern of exports to
Brazil many months in advance. Novertheless, it suggests
that
Regraded Unclassified
83
- 15 -
that in June or July when the Rubber Reserve program has
dropped off, the distribution of cargoes within the target
tonnage might be somewhat as follows:
Coal
50,000 tons
Rubber Reserve
4,000
=
Civilian Requirements
25,000
=
Tinplate for British
Meat Pack
2,500
If
Itabira
4,500 If
Steel Mill
5,000 If
Other Projects
2,000 II
Lend Lease
5,000
=
Total -
98,000
II
Priorities
The subcommittee understands that the April program
being prepared by the Department of State and the Board
of Economic Warfare will indicate a priority to be applied
if only 80% of the target tonnage is supplied. In the
meantime, the subcommittee recommends that if shipping is
not available to move the target tonnage to Brazil in
March, B priority be given to the following:
Coal
3,000 tons
Rubber Reserve
3,000
If
Itabira
1,000 Il
Steel Mill
1,000
If
Lend-Lease
2,000 If
Neither this recommendation nor the 80% tabulations
being prepared by the Department of State and the Board
of Economic Warfare for April should in any way be con-
sidered to lossen the urgency and necessity of meeting
the full program.
Regraded Unclassified
Regraded Unclassified
454 biother
- YURROU STATE
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84
TABLE 1
DRY CARGO TARGET SHIPPING TONNAGES FOR EACH OF THE OTHER
AMERICAN REPUBLICS
TOTAL
COAL
NEWSPRINT
TARGET
Argentina
40,000
15,000
6,500
Bolivis
4,500
:
120
Brazil
98,000
50,000 (1)
3,000
Chile
10,000
:
408
Colombia
9,200
:
437
Coste Rica
2,400
--
95
Cuba
60,000
20,000
700
Dominican
2,100
--
35
Republic
Ecuador
2,053
--
130
Guatemala
3,800
|
120
Haiti
1,700
--
10
Hondures
2,500
:
10
Nicaragua
1,300
--
40
Republic of
9,000
:
245
Panama
Paraguay
500
:
12
Peru
7,000
--
400
El Salvedor
1,600
:
100
Uruguay
16,000
I
8,000 (2)
800
Venezuela
12,000
:
190
(1) The coal target for Brazil was 70,000 until January
1943 when it was decreased to 50,000.
(2) The original estimate of coal requirements for Uruguay
was 14,000 tons per month, which W&B reduced to 8,000
tons because of the receipt of coal from countries
other than the United States end because of the use
of substitute fuels.
Regraded Unclassified
TABLE 2
UNITED STATES EXPORTS TO OTHER AMERICAN REPUBLICS
JANUARY-DECEMBER 1942
(Dry Cargo in Long Tons)
12 mo.avo, 6 mo.ave,
Country
Jan.
Fob.
Mar.
Apr.
May
Juno
July
Aug.
Sept.
Oct.
Nov.
Doe,
Jan.-Dec.
July-Dec.
Argentina 1
101,216
70,219
79,285
68,458
55,230
49,105
45,753
33,557
17,387
15,381
26,765
Dolivia 2
26,799
53,552
27,607
-
-
-
-
-
-
-
-
-
-
#
-
#
#
Brazil
135,508
114,825
76,086
62,070
78,695
80,034
43,036
81,231
65,225
89,463
49,213
60,217
Chile 3
38,709
85,055
17,654
31,118
64,731
20,020
25,336
23,976
21,168
13,852
13,709
25,645
8,532
19,334
Colombia
11,026
23,550
8,717
7,982
17,040
7,404
10,560
13,535
2,463
6,346
3,477
9,628
763
5,527
Costa Rioa
6,700
7,402
7,417
3,673
3,701
2,922
6,703
11,987
988
1,405
1,968
1,453
692
4,482
Cuba
4,581
108,412
81,554
1,831
78,069
105,381
69,496
65,238
80,745
51,179
79,733
60,560
72,082
Dominican
173,790
85,520
86,348
Republic
7,130
4,751
4,134
6,060
3,106
984
236
2
8,649
593
3,845
4,161
3,974
Ecuador
2,914
3,731
2,239
9,457
2,669
7,226
4,795
6,331
5,289
2,585
2,117
930
2,508
3,989
Quatomala
5,730
5,696
3,293
6,757
7,538
6,255
4,988
4,583
735
4,621
6,587
8,424
5,175
6,099
Haiti
5,021
2,564
1,912
2,411
3,611
3,804
1,022
2,032
3,188
2,167
597
4,746
1,582
2,694
2,385
Honduras
5,772
6,055
8,093
5,533
4,292
5,536
4,062
925
1,775
3,874
3,771
2,791
4,771
2,866
Nicaragua
1,624
1,911
1,968
669
2,353
4,744
879
956
604
658
476
4,283
1,920
1,309
Republic of
Panama 4
-
-
-
,
-
!
-
-
-
-
18,428
15,073
-
I
Paraguay
5
-
-
-
1
I
-
-
-
-
-
-
-
-
-
Peru
12,669
17,755
20,633
8,364
5,311
11,185
10,653
10,305
8,418
4,456
3,515
10,510
11,251
7,976
El Salvador
-
784
403
717
1,038
3,108
467
590
-
442
330
435
757
377
Uruguay
17,677
15,902
8,027
15,682
5,010
10,280
12,095
25,778
13,413
14,721
10,205
10,054
14,413
14,378
Venezuela,
36,419
15,919
25,029
27,761
22,641
23,281
8,561
7,726
5,469
8,078
10,627
11,421
18,448
8,647
TOTAL
494,887
373,310
357,125
344,859
307,056
313,798
244,052
243,064
229,200
238,253
254,564
415,241
346,855
270,729
1
Includes Paraguay
2
Included in Chilo
3
Includes Belivia
From January-October, shipments to Republic of Panama and Canal Zone are not shown
separately.
5
Included in Argentina
Source: Ver Shipping Admini stration.
Regraded Unclassifie
TABLE
UNITED STATES IRON AND STEEL EXPORTS TO OTHER AMERICAN REPUBLICS, JANUARY-DECEMBER. 1942
(INCLUDING TIMPLATE)
(Long Tons)
12 months average
6 months starage
Pebruary
Varah
April
May
June
July
August
Suptember
Oct
Denember
Argentina
25,455
9,552
20,508
10,374
5,062
8,378
9,834
7,252
1,990
2,061
11,401
5,876
9,815
6,409
Bolivia
451
837
509
867
306
1,406
196
756
541
(1)
(1)
(1)
1
-
Brazil
20,305
7,684
9,997
5,559
5,349
7,345
9,107
9,505
3,723
15,560
2,869
9,242
8,854
8,354
Chile
4,793
7,621
6,362
3,682
3,769
3,328
459
2,793
1,415
4,256
3,092
8,709
4,182
3,454
Colombia
1,960
1,528
1,532
1,355
837
837
286
31
1,253
450
112
2,053
1,020
698
Costa Rica
1,517
504
702
568
22
109
57
5
183
58
25
297
337
104
Cuba
4,414
2,545
2,840
3,309
906
641
2,604
4,134
2,893
3,873
7,030
8,537
3,644
4,845
Dominican Republic
212
426
241
130
8
93
224
I
146
522
167
149
Equador
303
338
426
426
189
355
31
487
235
178
84
309
280
223
Quatemala
369
198
221
124
79
68
15
(2)
34
1,829
1,231
1,124
441
706
Haiti
"
50
145
100
121
26
5
3
6
-
36
55
51
as
Hondurs
653
466
1,021
295
70
3
102
(2)
12
51
17
105
233
48
Nicarague
494
189
142
172
124
58
212
18
17
122
157
409
176
156
Republic of Panama (9)
I
-
-
Paraguay
167
693
467
378
170
90
167
197
55
(4)
(4)
(4)
Peru
1,508
2,063
5,700
1,565
1,539
1,288
616
527
302
718
1,267
4,833
1,827
1,377
El Salvador
108
154
74
102
2
28
1
9
(2)
47
We
10
Uruguay
3,736
1,870
2,804
1,946
728
1,558
677
2,716
297
3,070
1,631
4,728
2,145
2,304
Venesuela
7,073
4,620
6,275
10,635
4,751
7,756
2,755
2,283
1,891
719
1,726
2,764
4,432
2,023
Total
104,393
41,737
60,118
41,954
24,171
33,731
27,185
31,015
15,073
32,745
30,740
49,577
41,036
31,056
(1) Included in Chile
(2) Loss than one Long Ton
(3) Shipments to Republic of Parema a Canal Zone are not shown separately
(4) Included in Argentina
V. 5. Department of Commerce based on far Shipping Administration statistics:
85
Regraded Unclassified
TABLE 4
UNITED STATES COAL EXPORTS TO OTHER AMERICAN REPUBLICS, JANUARY-DECEMBER 1942
(Includes Anthracite, Bituminous, Coal and Coke Briquets, and Coke)
(Long Tons)
12 months
6 months
January
February
March
April
May
June
July
August
September
October
November
December
average
average
January-
July-
December
December
Argustions.
-
39,810
17,767
22,059
10,798
13,481
11,646
19,986
-
:
1,031
9,549
16,677
7,035
Bolivia
6,537
-
5,688
1
98
-
I
-
--
-(1)
(1)
-(1)
-
1
Brazil
1,773
2,918
44,088
42,607
14,029
42,225
22,450
72,310
35,995
43,595
31,630
42,746
33,025
41,444
Chil
2,324
2
30
25
10,158
5
11,762
-
-
17,294
2,520
191
3,709
5,294
Colombia
-
-
I
-
--
--
-
-
-
-
-
-
-
-
Costa Rica
6
6
-
--
-
--
6
-
-
-
--
-
1
1
Cubs
11,499
11,816
14,645
7,633
13,945
9,215
8,442
14,320
16,330
9,411
9,189
73,888
16,694
21,930
Dominican
Republic
18
-
5
1
38
--
5
--
1
-
-
11
6
3
Ecuador
123
--
119
-
--
-
:
-
--
-
-
99
28
16
Guatemala
6
7
20
--
11
--
:
-
|
-
36
18
8
9
Haiti
2
-
-
24
-
4
-
--
--
14
--
2
-
3
Honduras
W
5
44
--
-
I
--
-
-
-
7
--
8
10
Nicaragua
-
-
1
-
-
-
--
--
:
--
--
--
-
Republic
of
Panama
(3)
Paraguay
-
-
-
--
:
--
--
-
-
(2)
(2)
(2)
-
-
Peru
35
89
-
-
90
52
--
:
--
:
:
-
22
18
El Salvadr
30
8
10
-
-
5
-
--
-
-
-
4
-
1
Uruguay
6,700
10,156
8,094
-
5,462
18,152
--
-
6,203
-
-
--
4,563
4,970
Venezuela
4
9
I
-
-
30
--
4
-
34
--
135
18
29
TOTAL
29,105
64,737
247,766
80,525
49,143
64,956
59,831
124,772
52,326
113,809
41,719
126,637
87,944
86,516
(1)
Included in Chile
(2) Included in Argentina
(3) Shipments to Republic of Panama and Canal Zone are not shown separately
Source: U.S. Department of Commerce based on Var Shipping Administration statistics.
Regraded Unclas fie
86
TABLE 5
UNITED STATES EXPORTS TO CERTAIN AMERICAN REPUBLICS
January 1943
Preliminary.
(Dry Cargo in Long Tons)
Argentina
26,354
Brazil
85,720
Chile
10,120
Colombia
9,445*
Ecuador
500
Peru
14,175
Uruguay
16,309
*
In addition 8,287 tons were shipped to Panama
for transshipment to the north coast of Colombia.
Source: War Shipping Administration
Regraded Unclassified
TABLE 6
DISTINGUISHABLE PROJECT TONNAGES IN MARCH 1943
PROGRAM
(long tons)
Total Target
Project
Percentage
Argentina
40,000
1/
Bolivia
4,500
1870
42
Brazil
98,000
27900
28
Chile 2,
10,000
4200
42
Colombia
9,200
735
8
Costa Rica
2,400
235
14
Cuba
60,000
3/
Dominican Republic
2,000
540
27
Ecuador
2,055
360
17
Guatemala
3,800
490
13
Haiti
1,700
210
12
Honduras
2,500
not shown
Nicaragua
1,300
not shown
Panama
9,000
390
4
Pareguay
500
not shown
Peru
7,000
3690
53
El Salvador
1,600
not shown
Uruguay
16,000
not shown
Venezuela
12,000
1949
16
1/
Argentina is a special case.
Figures are not indicative since the Corporación de
Fomento has been operating extra ships and its tonnage
is not included.
3
Not significant - especially as the target is a minimum
usually greatly exceeded.
Regraded Unclassified
87
APPENDIX B
RUBBER RESERVE COMPANY
Washington, D.C.
RUBBER PROGRAM TONNAGE REQUIREMENTS
Februery through July, 1943
Listrd below are the tonnage requirements of the Amezon
Rubber Program for the months February through June, 1943, broken
down by categories.
February
March
April
May
June
July
Flosting Equipment
800
2,100
1,500
500
Marine parts &
900
600
1,000
1,000
1,000
1,000
supplies
Drummed petroleum 3,988
4,388
4,500
4,750
5,000
200
River Transportation
Coal - River
3,000
1,500
1,500
1,500
1,500
1,500
Trensportation
Construction
3,015
2,860
1,000
1,000
600
100
equipment
Drummed petroleum 1,500
2,000
2,500
2,500
2,500
100
Construction equip-
ment
Tappers' supplies, 2,100
2,100
2,000
2,000
1,000
1,000
tc.
Held over from
Jenuary
1,960
Total
17,863
15,548
14,000
13,250
11,600
3,900
(4,400)
#
*If tankage will be ready by July, June shipments of petroleum
products can be made in bulk.
Regraded Unclassified
Regraded Unclassified
oth Dr they 257
MIT xr 3 - STREET et
Pace
-
rich
00001
The
100
2'020
TCO
0943 -
yes
UTALE
DEPARTMENT
Fisco
000
to
DEDO
COD
-
nx
eco
-
ROAD
3
STATE
-
your
TOTA
SC.RD pr
HOOPER EOR (There
will SPI A IC
will 2082
D'L"
DESEMAL CORBYIN
VBSEXDIX =
88
The above figures have been estimated on the basis of informa-
tion currently available on anticipated shipments of supplies, equipment
and fuel. This information is not always complete, and any rapid changes
in the priority or production situation might alter requirements for
shipping space in particular months.
It is expected that requirements for dry cargo space will de-
crease materially after July, due principally to the fact that petroleum
products will be moving in bulk after that date rather than in drums A0
at present. Dry cargo soace requirements for the Amazon rubber program
are therefore expected to average less than 10,000 tone & month for the
whole of 1943. The seasonality of rubber tapping, and the necessity that
the basic preparatory equipment be in the Valley by May 1, in time for
the opening of the 1943 tapping season, results in 8 bulking of shipments
in the first half of the year.
Estimates for shipments of fleating equipment, construction
equipment, marine parts and supplins and miscellaneous rubber tapping
supplice have been prepared after 8 review of the time at which outstanding
orders for the same will be completed and ready for shipment to Brazil.
Delivery dates of the rather small balances of supplies and equipment
needed but still unordered have Also oren estimated and their wrights
included in arriving at the tonnage requirements of the program. Under
present production conditions, it 19 not possible to actermine accurately
the delivery datee on SOMP orders. The dates used in preparing the
above table represent the judgment of buyers familiar with the various
mark te.
Fuel comsumption of the coal-burning steamore which will soon
be operating on the Amazon and its tributaries has been determined from
cxamination of former operating records. The best information as to the
dates on which they will arrive in Belemand begin operating on the River
indicatos that not loss than 3,000 tons of coal must move in February,
and that at least 1,500 tons must move each month thereafter. The ship-
ment of 3,000 tone in February will result in the establishment of n
smell reserve sufficient for approximately one month's operation.
Similar calculations have been made for the many diescl and
gasoline-burning vessels and items of construction equipment which are
now or shortly will be in operation in the Valley. Proper Allowance has
been made for the fnct that there will be some time-Ing between the Ar-
rival of construction equipment in Belem, end the date on which it will
require fuel, and plso for the fret that fuel must be moved to up-river
pointe in anticipation of operations both of river creft and construction
equipment.
Examination of the nbove table will disclose that heavy ship-
ments of floating equipment and construction equipment begin to taper
Regraded Unclassified
off in April, and that by June 7.500 tons out of an 11,000 ton total 1a
represented by drummed petroleum products. Included in presently scheduled
shipments are sizeable tonnages of knocked-down oil tanks and tank farms,
Fuel barges have already been shipped to the Valley for use in transport-
ing bulk fuel from Belem to up-river bulk storage points. Depending upon
the speed with which these can be erected, delivery to Belem of gasoline,
kerosene and diesel oil can be made in bulk, thus reducing requirements
for dry cargo space.
At the moment it appears that shipment in drume muet be mado
through May. It may be possible to ship in bulk a sizeable portion of
petroleum requirements in June, and cortainly after July all except lubes
and greases will go in bulk. The reduction in dry cargo space thus ef-
fected will undoubtedly be great enough 80 that the average monthly re-
quirements of the rubber program during 1943 will not exceed 10,000 tone.
It has been requested that an estimate be made of the effect
of reducing the tonnage allotment for the rubber program by 3,000 to
5,000 tons a month. Three thousand tons a month, during the next four
or five months, represents so large a portion of the basic preparatory
equipment that ie being sent to the Amazon at the present time that its
loes might completely stifle the Amazon rubber program. Unless this
equipment is on hand in the Valley by May 1, in time for the opening of
the 1943 tapping season, a very large share of the rubber expected to
be secured in that area in 1943 can be written off B.S lost to the war
effort.
The importance of the Amazon rubber program as compared with
other sources of crude rubber in this Hemisphere is illustrated by the
fact that 78$ of all tree rubber expected to be imported from Latin America
in 1943 will come from the Amazon area. It does not seem at all likely,
moreover, that a diversion of effort from the Amazon to some nearer area
of potential rubber development would even begin to offset the large
time. tonnages which would be lost by slighting the Amazon program at this
Regraded Unclassified
34
89
Roard of Economic Warfare
appendix A.
February 1, 1943
ogram Supply Branch
SHIPPING PROGRAM
Bolivia
SECRET
March - 1943
Long Tons
Naval Stores
10
Rubber and Rubber Products
5
Textiles (except jute bags)
25
Cotton Yarn
5
Cotton Piece Goods
15
Rayon Yarn
5
Jute Bags
5
Lumber
400
Food Manufactures
5
Newsprint
120
Paper and Paper Products
200
Lubricants (oils and greases)
300
Paraffin
175
Window Glass & Glass Products
100
Refractory Brick
50
Watson Gench (Tungsten Mine)
50
"on and Steel
1,200
Civilian
200
Projects
1,000
1. Bolivian International Mining
5
2. Arramoyo de Minus
135
3. Patino Minns
700
4. Watson Geach
160
Tinplate
90
Coppor and Copper Products (Including Coins)
100
Machinery and Vehicles (Including Parts and accessories)
690
General Civilian
520
Electrical
20
Industrial
150
Agricultural
100
Automobiles and Trucks
250
Projects (all types of machinery)
170
1. Bolivian Internat'l Mining
10
2. Patino Minou
50
3. Villazon-Attachn Railroad
(ona locomotive)
110
thomicals and Drugs
150
Modicinals & Pharmacouticals
5
Soda Ash
30
Other Industrial Chomicals (including copper sulphate)
45
Paints, Pigments, and Varnishos
15
Socp Dynamite and Explosives (including blasting caps)
25
10
Other Chomicals
10
Antofrgasto Railroad
250
plivian Power Company
250
Miscellaneous un Amorican Airways
150
110
TOTAL
4,500
Regraded Unclassified
Regraded Unclassified
BECKEL
Board of Economic Warfare
90
Program Supply Branch
SHIPPING PROGRAM
Brazil
March 1943
Long tons
Naval Stores
500
Rosin
300
Turpentine (natural)
200
Wood pulp
2,000
Newsprint
3,000
Coal
50,000
Lubricants (oils and greases)
100
Artificial turpentine
250
Window glass and glass products
400
Refractory brick
200
Sulphur
1,200
Iron and steel
12,000
Civilian
5,435
Projects
6,565
1. National Steel Mill
2,000
2. Goodyear Tire and Rubber Company
45
3. Electro-Chimica of Brazil
100
4. Firestone Rubber Co.
60
5. Itabira
4,000
6. General Electric
a. SP151, Plant Expansion, Rio
de Janeiro
10
b. SP#237, Lamp factory, Rio de
Janeiro
1.00
C. SP#307, Transformer Factory,
Rio de Janeiro
50
7. Sorocabana Railroad
200
Tinplate
2,500
Copper and copper wire (Sorocabana Railroad)
40
Brass and other copper alloys
300
500
Lead
Zinc in bars and rods
400
Machinery and Vehicles (including parts and accessories)
1,825
Civilian
680
Electrical
80
Industrial
100
Agricultural
200
Automobiles and Trucks
300
Projects (all machinery and vehicles)
1,145
1. Industries Klobin
250
2. National Steel Mill
400
3. Zlectro-Chimica
150
4. Sao Paulo Telephone Co.
15
5. Sorocabana Railroad
120
6. General Electric
SP #142 Bela Horizonte
75
SP #151 Plant expansion, Rio
de Janeiro
10
SP #237 Lamp factory, Rio de
Je siro
75
SP #307 Transformer plant, Rio
de Janoiro
50
Chemicals and Drugs
3,735
Coal Tar Dyes
110
Phenol
45
Medicinals and Pharmaceuticals
75
Load arsenate
75
Cellulose acetato
75
Regraded Unclassified
- PHONE care
as
e
114 - news
no
FROM
supply
JUNET
-
DETAILS
DE
a w was
RI
100
2.
thip
and
mas
w
why
WE
10ym
-
BECKEL
THERE
988
Board of Economic Warfare
90
Progran Supply Branch
SHIPPING PROGRAM
Brasil
March 1943
Long tons
Naval Stores
500
Rosin Turpentine (natural)
300
200
Wood pulp
2,000
Newsprint
3,000
Coal
50,000
Lubricants (oils and greases)
100
Artificial turpentine
250
Window glass and glass products
400
Refractory brick
200
Sulphur
1,200
Iron and steel
12,000
Civilian
5,435
Projects
6,565
1. National Stoel Mill
2,000
2. Goodyear Tire and Rubber Company
45
3. Electro-Chimica of Brazil
100
4. Firestone Rubber Co.
60
5. Itabira
4,000
6. General Electric
a. SP151, Plant Expansion, Rio
de Janeiro
10
b. SP#237, Lamp factory, Rio de
Janeiro
100
C. SP#307, Transformer Factory,
Rio de Janeiro
50
7. Sorocabana Railroad
200
Tinplate
2,500
Copper and copper wire (Sorocabana Railroad)
40
Brass and other copper alloys
300
500
Lead
400
Zinc in bars and rods
Machinery and Vehicles (including parts and accessories)
1,825
Civilian
680
Electrical
80
Industrial
100
Agricultural
200
Automobiles and Trucks
300
Projects (all machinery and vehicles)
1,145
1. Industries Klobin
250
2. National Steel Mill
400
3. Electro-Chimica
150
4. Sao Paulo Telephone Co.
15
5. Sorocabana Railroad
120
6. General Electric
SP #142 Bela Horizonte
75
SP #151 Plant expansion, Rio
de Janeiro
10
SP #237 Lamp factory, Rio de
Janeiro
75
SP #307 Transformer plant, Rio
de Janeiro
50
Chemicals and Drugs
3,735
Coal Tar Dyes
110
Phenol
45
Medicinals and Pharmaceuticals
75
Lead arsena
75
Cellulose acetato
75
Regraded Unclassified
- 2 -
Chemical specialties (other plastics mátorials)
20
60
Formaldchyde
75
Sodium sulphate
Soda ash
1,000
Caustic soda
1,500
200
Zinc oxido
Carbon black
75
Titanium oxido
75
Paints, pigments and varnishes
250
Superphosphato (fertilizer)
-
Other fortilizers
100
Miscellaneous
1654
Quartz-mich program (entire unshipped balance of program)
100
Rubber Reservo (North Brazil only)
10,000
Lend-Lease Materials
7,600
Brazilian Airplane Engino Factory
4,100
Rails
3,500
Machinory
600
Brazilian Military Commission
2,800
Brazilian Naval Commission
Broziliun Aeronautical Commission
500
total
98,000
* Give preference to photographic material, scientific and professional instruments,
tanning extracts, and precision instruments.
Regraded Unclassified
Board of Economic Warfare
Program Supply Branch
91
SHIPPING PROGRAM
Chile
March, 1943
Long tons
Textiles (except jute bags)
160
Cotton Yarn
50
Cotton Piece Goods
75
Woolen Piece Goods
10
Rayon Yarn
25
Jute Baga
50
Food Pulp
500
Newsprint
400
Paper and Paper Manufactures
200
Lubricants (oils and greases)
250
Paraffin
150
Asbestos
220
Asphilt and Tar
50
Iron and Steel (except Tinplato)
4,775
Civilian
1,000
Projects
3,775
1. Chilean State Railway
* 2,155
2. Braden Copper
760
3. Andes Copper
300
4. Chilean Exploration
500
5. Bethlehem Chilo Iron Mines
60
Tinplate
500
Central Heating and Rofrigerating
Equipment
25
Nonforrous Metals
250
Machinery and Vehicles (including parts
and accessories)
890
Civilian
490
Electrical )
350
Industrial )
Agricultural
50
Automobiles )
90
Trucks
)
Projucts
400
Chilean Trading Corp.
1,00
Household and Office Muchinery
25
Chemicals and Drugs
1,000
Medicinals and Pharmaccuticals
5
Calcium Carbido
100
Ammonia end Ammonia Compounds
300
Pignonts, Paints, and Varnishes
100
Other Chemicals
495
Photographic Equipment and Materials
25
X-Ray Films
5
Miscellaneous
500
n-Amorican Airways
25
## Total
10,000
+
485 additional tons of iron and stool for the Chilean State Railways to be
shipped on vessels chartered for the use of Corporacion do Fomonto do la Produccion
Tonnage requirements of Corporacion do Fomunto do 1: Produccion are not included
in this total because of special shipping arrangements alroady made.
Regraded Unclassified
Regraded Unclassified
Board of Economic Warfare
Program Supply Branch
92
SHIPPING PROGRAM
Colombia
March, 1943
Long tons
Milk - powdered and condensed
30
Raw tobacco
4
15
Hope
Textiles
275
Prepared cotton or fibre yarn
40
Cotton and wool thread
75
Cotton cloth
40
Cotton duck
35
Mool yarn
35
Rayon yarn
50
4
Cork
Newsprint
437
30
Cigarette paper
200
Kraft paper
Cardboard paper
190
Other paper manufactures
70
150
Lubricating oils and grenses
350
Paraffin
30
(hite cement
25
indow glass
Glass bottles (beverage and pharmaceutical)
25
25
Sanitary and porcelain ware
Refractory brick materials (fire brick, etc.)
100
30
Asbestos
25
Sulphur
2,900
Iron and Steel
"Civilian
2,365
535
Projects
1. S.P. 219 Tropical Oil Co.
120
2. S.P. 286 Compania Minera
Choco Pacifico
15
3. S.P. 194 & 243 Intern'l
Petro. Co.
400
240
Hardward, miscellaneous
50
Perro-alloys
1,500
Timplate
90
Bonferrous metal and manufactures
Machinory and Vehicles (Including parts
735
and accessories)
600
Civilian
Electrical
75
Industrial
250
200
Agricultural
Automobiles and Trucks
75
135
Projects (all types of machinery)
1. S.P. 114 Colombin Sugar Co.
50
2. S.P. 219 Tropical Oil Co.
30
3. S.P. 286 Choco Pacifico
5
4. S.P. 194 & 2/3 Inter.Petro.Co.
50
1,130
Chemicals and Drugs
Coal tar dyes
30
Modicinals & pharmacouticals
150
Copper sulphate
50
Plastic materials
10
Regraded Unclassified
93
2
Roard of Economic "arfare
ogras Supply Branch
February 1, 1943
Sulphuric acid
50
Aluminum sulphate
25) Water purification
Chlorine
30)
only
Calcium carbide
20
SHIPPING PROGRAM
Caustic soda
200
Soda ash
100
Costa Rica
Paints, pigments, and varnishes
100
Aumonium sulphate
50
March - 1943
Potash salts
75
Explosives
100
Long tons
Sonp
50
Other chemicals
90
Foodstuffs
555
Miscelluneous****
450
20
Lard
Pan American Airways
65
Evaporated milk
5
Total
9,200
theat flour
475
40
Sepolina
5
Yeast
* Give preference to railway materials, to orders of Caja de Credito Agrario and
Soybean oil
10
to Forrocarril do Pacifico for material for improvenent of part of
5
Naval Stores
Textiles (cotton textiles)
20
$Hr Give preference to extracts, alkaloids, serums, vaccines, vitamins, quinine,
95
Newsprint
20
medicines, apo-therapeutics.
Prapping paper
45
Other paper products
50
#**Give preference to office supplies, photographic supplies, transmission belting,
Casoline and fuel oil
65
rubber articles, and brushes, tires and tubes.
ubricating oils
550
Cosent
425
Irco and Steel
Agricultural lind tools
25
215
Other civilian
185
Projects
1. S.P. 86 Cia National (le Pureza
25
y Lus
2. S.P. 137 United Fruit Co.
160
(Abaca)
15
Nonferrous netals and alloys and ferra-alloys
Machinery and Vehicles (including parts and accessories)
255
125
Civilian
Electrical
25
Industrial
25
Agricultural (no tractors)
50
Automobile and truck parts and
accessories
25
130
Projects (all types of anchinery)
1. S.P. 86 Cia Nacional de
20
Foreza y Luz
2. S.P. 137 United Fruit Co.
110
(Abaca)
150
Chemicals and Drugs
2
Medicinals and pharmacouticals
100
Copper sulphate
1
Industrial acida
20
Paints, pigmonto and varnishos
20
Fortilizers
7
Other chemicals
120
iscellaneous
30
an American Airways
TOTAL
2,400
AME
new
Now
INC
VISIT the can
TO
TAX
THE
expire
Amy
00
hereby
Type
the
THE
use
-
loing
<04
DATE
170ml
PATS
Moz
-
VENTS
-
Board of Economic Warfare
Program Supply Branch
February 1, 1943
94
SHIPPING PROGRAM
Cuba
March - 1943
Long tons
Foodstuffs
22,000
Lard
2,000
Rice
10,000
Flour
6,000
Other
4,000
Navel Stores
200
Rubber and Rubber products
50
Seed potatoes
200
Textiles (except jute bags)
350
Juto bags
1,400
Lusber
1,600
Cratos and cooporato
200
Other wood products
100
Flood pulp
500
Newsprint
700
Trapping paper
200
Paper board and cardboard
500
Other paper products
200
Cocl and coko
20,000
Petroleum products
690
Lubricating oil
400
Voselino
200
Poraffin
80
Other
10
Coment (Thite)
100
50
Tindow glass
Glass bottles
350
100
Refructory brick
Sodium chlorido (ordinary snit)
400
Iron and Steol (except tin plate)
4,000
700
Tin plate
Alloys, forrous and nonferrous
75
Machinery and Vehicles (incl. parts & nocossories)
525
Electrical
75
Industrial
300
Agricultural
75
Automobilos & Trucks
75
Chemicals and drugs
2,200
80
Medicinals and pharmscouticals
Disinfoctants and insecticidos
70
Hydrochloric acid
80
Soda Ash
200
Caustic noda
400
Colcium carbide
150
Chomical salts
300
Fortilizers
800
(a) Ammonium sulphate
200
(b) Superphosphate
400
(c) Potussium chlorate
200
Other chemicals and drugs
120
#Miscellaneous
1,500
Pan American Airways
1,960
** Total
60,000
Ship according to ratings
Excludes Nicaro Nickol because of spocial shipping arrangements.
Should additional tonnage become available, proference should be given to sugar
bags (juto or cotton) and to foodstuffs.
Regraded Unclassified
Who
to
- VP MOTOR - -
MADE
THE
NOT
e
STATE vit
1.
4:
move on
in Ste
M HAS
/
M
il
it
in was DATE
Extedo - then We
to May
A A
1170
& CAJ (4)
-
401
THE
NONE
VOID
M 0.004
one - 100 of
nee
business
provider
with
s
L
-
166
antime
OUT
95
Board of Economic Verfare
Program Supply Branch
SHIPPING PROGRAM
Dominican Revublic
March, 1943
Canned Milk
10
Tallow
50
Flour
100
Rubber products
10
Seeds
15
Textiles
25
Bagsing (jute and cotton)
25
Newsprint
35
Trapping paper
50
Paper bags
5
Cardboard
15
(ther paper
20
Lubricating oils and greases
15
Kerosene
50
(ther petroleum products
10
Camont'
300
Window #1ABS and glass products
50
Asphalt
50
Iron and steal
450
Civilien (including hardware)
250
Projects
2n
S.P.R. Sugar Co.
75
Porcella, Vincini Co.
55
Cuban-Dominicon Sales Corp.
50
Junes Brown
20
Tinplate
20
Nonferrous ores, metals, and alloys
15
Machinery And vehicles (including parts and
accessories)
165
Civilian
75
Electrical
15
Industrial
25
Agricultural
15
Trucks end parts
20
Projects (all types of machinery)
90
Porcelln, Vincini Co.
20
Cuban, Dominican Sales Corp.
$
James Brown
10
Chemical and Drugs
185
Civilien
160
Sulphuric Acid
20
Soda Ash
10
Caustic soda
40
Paints, pigments, and vornishes
30
Soap
25
All others
35
Projects (All chemicals and drugs)
25
Cuban Dominican Sales Corp.
25
Miscelleneous
160
Civilian
95
Projects
65
S.P.R. Sugar Co.
25
Cuban Dominican Sales Corp.
30
James Brown
10
Pon American Airrays
Total
2,000
Should additional tonnage be available, goods may be londed freely
without reference to the Above breakdown.
Regraded Unclassified
Regraded Unclassifie
paper STYLE State
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0% Economic C
Board of Economic Warfare
96
Program Supply Branch
SHIPPING PROGRAM
Ecuador
March, 1943
Long tons
Foodstuffs (exclude flour)
70
Cereal grains products
35
(ther food products
35
Naval Stores
120
Textiles and Textile manufactures
25
Newsprint
130
Paper and paper manufactures
25
Lubricants (oils and greases)
35
Paraffin
100
Window glass and glass products
25
Refractory brick (for La Cemento Nacional)
10
Asphalt and roofing
10
Iron and steel
860
Civilian (includes agricultural hand
implements)
550
Projects
310
1. Cotopaxi Exploration Co.
150
2, Intern'l Petroleum
160
Bathroom fixtures
35
Copper and Aluminum products
10
Machinery and Vehicles (including
parts and accessories)
285
Civilian
255
Electrical
15
Industrial
100
Agricultural
25
Automobiles & Trucks
115
Projects
30
Cotopaxi Exploration Co.
10
Intern'l Petroloum
20
Chemicals and drugs
200
Medicinals and Pharmaceuticals
10
Insecticides and Fungicides
10
Caustic Soda
20
Soda Ash
15
Other Industrial Chemicals
40
Pigments, paints and varnishes
75
Explosives
20
Other Chemicals (including soap)
10
Hiscellaneous
105
Pen American
10
2,055
Regraded Unclassified
Regraded Unclassified
guardian
=
sus
70
payments
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006
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223
168
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WRETT T302
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97
Board of Economic Warfare
Program Supply Branch
SHIPPING PROGRAM
Guatemala
March, 1943
Long tons
Foodstuffs
775
Wheat Flour
650
(ther
125
Rubber products (truck tires, etc.)
5
Hops and malt
35
Textiles
119
Cotton yarn
16
Wool yarn
1
Rayon yarn
2
All other
100
Jute Bags and bagging
85
Newsprint
120
Paper manufacturers
42
Coal and coke
10
Lubricents (oils and grease)
140
Paraffin
35
Lime
290
Glass and glass products
65
Iron and Steel
705
Civilian (Incl. 25 tons of hand tools)
445
Inter R.R. of Central America
260
Copper, brass, bronze, items
3
Machinery and Vehicles (Incl.parts and accessories)
171
Electrical
16
Industrial
120
R.R. equipment
100
Agricultural
25
Auto & trucks
10
(parts and accessories only)
Chemicals and Drugs
770
Medicinals & phPTmaceuticals
10
Copper sulphate
700
Soda ash or caustic Soda
30
Paints, pigments, varnishes
10
Other chemicals
20
Matches
10
Pan-American
230
Miscellaneous
190
Total
3,800
Regraded Unclassified
98
Board of Economic Warfare
February 1, 1943
ogram Supply Branch
SHIPPING PROGRAM
Haiti
March - 1943
Long Tons
Foodstuffs (excluding flour)
100
Flour
400
Cotton piece goods
130
Other Textiles
20
Jute bags
47
Rewsprint
10
Wrapping paper
10
Other paper
10
Petroleum products (in packages)
40
Fuel oils
25
Lubricating oils
10
Other
5
Cement
450
Government
250
Civilian
100
Projects
100
Shada
90
La Plant acion Dauphin
10
Clay Products
5
Glass and glass products
15
Iron and teel
145
Civilian
85
Projects
60
Shada
30
La Plant acion Dauphin
30
Machinery and Vehicles (including parts and accessories)
45 -
Civilian
30
Industrial
10
Flectrical
5
Agricultural
5
Trucks and parts
10
Projects (all types of machinery)
15
Chemicals and Drugs
168
Shada
15
Civilian
153
Copper Sulphate
23
Paints and Pigments
10
Fertilizers
8
Ammonia sulphate
7
Potash salts
1
Soap
100
Other chemicals and drugs
12
Miscellaneous
85
Pan-American Airways
20
TOTAL 1,700
*SHADA - Haitian American Development Corporation
99
Board of Economic Warfere
February 1, 1943
Program Supply Branch
SHIPPING PROGRAM
Honduras
March - 1943
Long Tons
Foodstuffs
500
Flour
100
Wheat
200
Other Foods
200
Rubber and rubber products (tires, etc.)
10
Textiles
80
Bags
20
Lumber, includ. railroad tires
100
Newsprint
10
Paper products
80
Motor Fuels
50
Lubricants (oils and greases)
25
Paraffin
15
Cement
200
Lime
170
Glass and glass products
25
Iron and Steel
300
Tele Reilroad
200
Civilian
100
Machinery, Vehicles (incl. parts end accessories)
55
Electrical
8
Industrial
25
Agricultural
12
Auto and trucks
10
Chemicals and Drugs
725
Medicinals and pharmaceuticals
10
Copper sulphate
600
Calcium Carbide
4
Pigments, paints, etc
10
Superphosphate
50
Dynamite and explosives
25
Other Chemicals
26
Matches
5
Pan American
5
Miscellaneous
100
TOTAL
2,500
100
Board of Economic Warfare
Program Supply Branch
February 1,1943
SHIPPING PROGRAM
Nicaragua
March - 1943
Long Tons
Flour
350
Leather
3
Rubber products
5
Tobacco
10
Textiles
100
Bagging (cotton or jute)
10
Newsprint
40
Paper manufactures
30
Gasoline and fuel oil
50
Lubricents
25
Glass ware and china ware
15
Iron and Steel
225
Ferro-alloys and nonferrous metals and alloys
20
Machinery and Vehicles (including parts and accessories)
150
Electrical
20
Industrial
70
Agricultural
40
Automobiles and trucks
20
Chemicals and Drugs
177
Medicinals and pharmaceuticals
12
Calcium carbide
50
Cyanide
25
Soda ash or caustic soda
30
Paints, pigments and varnishes
10
Dynamite
25
Soan
10
Other chemicals
15
Miscellaneous
65
Pan American Airways
25
TOTAL
1,300
Board of Economic Warfere
February 2, 1943
Program Supply Branch
101
SHIPPING PROGRAM
Ponama
March - 1943
Long Tons
Foodstuffs
3,200
Preserved mests (ham and bacon, etc.)
60
Lard
100
Evaporated milk
180
Other dairy product (margarine, butter,
powdered milk, cheese, 0.00, etc.)
200
Polled Online
130
Theat flour
1,000
Dried vegetables
150
Onions
130
Potatoes
250
Canned soups, tomato sauce, crackers
fruit juices
570
Others (apples, jame, spicos, vegetables
oils, fresh vegetables)
260
l'alt
150
Leather manufactures
30
Rubber products
20
Tobacco menufactures
90
Textiles
175
Cotton textiles
95
Other textile materials
80
Lumber
600
lood product
50
Yewsprint
245
Fraft paper
90
Puper manufactures
500
Other papers
170
Lubricating oils
300
Cenent
1,000
Lime
200
Glass bottles
300
Other glass products
90
Iron and steel
000
Civilien
380
United Fruit Co. Abaca Project
220
Lachinery and vehicles (including parts and occencories)
290
Civilian
140
Flectricol
20
Industrial
10
Agriculturel
70
Trucks and automobiles
40
Projects (all types of machinery)
150
Abaca Project
150
Chemicals and Drugs
620
Medicinals and pharmacouticals
10
Copper sulphate
150
Sode Ash
10
Coustic soda
20
Points, pigments and vernishes
45
Ammonium sulphate
60
Mixed fertilizers
140
Soap
30
Other chemicals
155
Other rew materials
160
l'iscellaneous
250
Pen American Airways
20
TOTAL
9,000
No whiskey to be shi-ped.
On additional tonnage, give preference to foodstuffs.
Regraded Unclassified
102
Board of conomic Marfare
February 1, 1943
Program Supply Branch
SHIPPING PROGRAM
Paraguay
Larch - 1943
Long Tons
Textiles
10
Cotton manufactures
5
Vegetable fibers and manufactures
5
Newsprint
12
Paper manufacturer
30
Tobacco manufactures
5
Lubricating oils and greases
15
Paraffin
5
Glass and glass products
15
Non-metallic minerals
10
Iron and steel (exclusive of tinplate)
133
Timplate
175
Machinery and vehicles (parts and
25
accessories
Flectrical
5
Industrial
5
Agricultural
10
Auto and trucks
5
Chemicals
40
Viscelleneous
25
TOTAL
500
103
Board of Economic Marfare
regram Supply Branch
SHIPPING PROGRAM
Peru
March, 1943
Long tons
Fats and oils (lard, margarinë
cooking oils, etc.)
30
Other food stuffs (excluding rice
and flour)
100
Rubber and rubber products
40
40
Textiles
Cotton duck
5
Cotton piece goods
5
2
Wool manufactures
28
Rayon and rayon yarn
1400
Lumber
200
Civilian
900
Cerro de Pasco
Other mines
300
25#
Food Pulp
400
ewsprint
125
Paper and paper manufactures
Lubricants (oils and greases)
40
10
Paraffin
50
Eindow glass and other glass products
75
Refractory brick and materials
1800
Iron and Steel
400
Civilian
1400
Projects
1. A. F. Wiese
10
2. Cerro de Pasco
500
3. American Smelting
100
4. International Petroleum
450
5. Vanadium Corp.
150
6. Comp. Minera Pacaurco
40
7. Central Railrond of Peru
150
25
Bathroom fixtures
200
Timplate
50
Copper, cluminum, and other nonferrous motals
Machinery and vehicles (including parts and accessories)
1540
600
Civilian
Electrical
50
Industrial
100
Agricultural
150
Automobile (parts only)
100
Trucks
200
Projects (all machinery, vehicles & parts)
940
1. Goodyear
250
2. Vonadium Corp.
50
3. Com. Minera Pr.caurco
10
4. Corro de Pasco
120
5. Other minos
110
6. Control Railrond
200
7. Internation Potro.
200
550
Chemicals and Drugs
10
Medicinals and pharmacouticals
50
Insecticidos (for agriculture)
30
Dyes
125
Soda Ash.
90
Caustic Sodn
40
Paints, pigmonts, and varnishos
Regraded Unclassified
Board of Economic Warfare
104
Program Supply Branch
SHIPPING PROGRAM
El Salvador
March, 1943
Long tons
Foodstuffs
Dairy products
740
Wheat
1
Flour
540
Malt & other grains
170
Baby foods
21
Yeart
3
Spices
3
Hides, skins, and leather
2
Stearins
5
Linseed Oil
6
Rubber manufactures, tires, etc.
3
Seeds
7
Textiles
1
Cotton piece goods
88
125
Sewing threada
10
Bagging
12
Other textiles
15
Newsprint
:
100
Cigarette paper
2
Other paper products
20
Coal and coke
50
Lubricants
5
Paraffin
25
Cement
36
Lime
10
Porcelain sanitary supplies
5
Sulphur
6
Iron & steel
200
3
Nonferrous metals, alloys and ores
Machinery and Vehicles (including parts
and accessories)
65
Electrical
10
Industrial
25
Textile
4
Railway
17
Coffee Mill
2
Domestic sewing machines
2
Agricultural
20
Automobiles and trucks
10
93
Chemicals and Aruga
Analine dyes
2
Medicinals and pharmaceuticals
5
Bicarbonate of soda
1
1
Sulphuric acid
1
Calcium carbide
20
Sodium cyanide
20
Caustic soda
Fertilizer
Superphospate
40
5
Other chemicals
8
Matches
80
Miscellaneous
5
Pan American Airways
Total
1,600
Regraded Unclassified
loard of Economic Warfare
February 2, 1943
105
Program Supply Branch
SHIPPING PROGRAM
Uruguay
March - 1943
Long Tons
lucose
25
lotato starch
10
laval Stores
220
Rosin
200
Turpentine
20
Tanning Materials
25
?scking and gaskets
2
Seeds (vegetables)
20
Tobacco
10
[extiles
107
Cotton yarn
26
Cotton cards and camelback for times
50
Rayon
30
Vegetoble fibers for bruebes
2
Wood pulp
350
Wood manufactures (wood in-steps for shoes
2
Sewsprint
800
Coal
9
8,000
Lubricant (oils and grenses)
300
Peraffin
20
Vaseline
20
Refractory miterials
25
Abrosives
10
Carbon and gruphite electrodes
5
3
Graphite
5
iron Fluorospar and steel (excluding timplate but including 25 tons of hand tools)
1,800
Timplate
2,000
50
Ferro-alloys
100
Copper, in all forms
10
Bruss and bronze manufactures
2
Land solder
5
Lend manufectures
30
Tin (sheets or ingots)
50
Zine
1
Babbitt metal
3
Machinery Antimony and Vehicles (including parts and necessories)
475
75
Electrical
Storage batterios and accessories
20
Other
55
150
Industrial
200
Agricultural
50
Automobiles and Trucks
590
Chemiculs and Drugs
2
Naphthalene
20
Coal tar dyes
50
Medicinals and pharmiceuticnls
5
Insecticides
5
Load nrsenate
150
Arsenic
- 2 -
Long tons Lone This
Cresylic acid
50
Boiler compound
3
Acetic acid
15
Citric acid
2
Formic acid
7
Tetrachloroethylene & Trichloroethylene
5
Acetone
3
Formaldehyde
3
Carbon Tetrachloride
20
Synthetic resins (plastics)
5
Calcium chloride
50
Calcium sulphide
5
Bichromates
15
Caustic potash
5
Sodium sulphide
30
Sodium sulphite
3
Sodium bisulphite
5
Sodium hydrosulphite
8
Rare gases (greon, orgon)
5
Barium peroxide
2
Pigments, paints & varnishes
50
Lithopone
30
Paint thinners & solvents
5
Paints & varnishes for leather
2
Zinc oxide
10
Sodium chlorate or potassium chlorate
10
Dynamite
5
Dental materials
2
Manganese dioxide
2
Essences in general
1
Ink (printing)
20
Asphalt, felt (roofing)
25
Miscellaneous
430
Materials for packing houses
250
Paper
Spices
Chemicals
Machinery
TOTAL 16,000
Regraded Unclassifie
106
Board of Economic Warfare
Program Supply Branch
SHIPPING PROGRAM
Venezuela
March, 1943
Long Tons
Milk, powdered, evaporated, condensed
300
Crushed oats
30
Flour
1,350
Malt
200
Tunned leather
40
Rubber and rubber products
20
Naval stores
115
Seeds, seed potatoes, and other seeds
150
Textiles
262
Sewing thread
20
Shoemakers' thread
2
Cotton duck
70
Cotton fabrics
140
Rayon yern
30
Wood pulp
330
Newsprint
250
Cordboard in pulp
137
Materproof paper
7
Paper cartons
33
Toilet paper
10
Other paper products
150
Coke (carbon coke)
40
Lubricants (oils and greases)
100
Paraffin-
190
Portland cement
1,000
White cement
100
Glass and glass manufactures
50
Refractory brick end materials
140
Abrasives
5
Graphite electrodes
30
Iron and steel
2,500
Civilian
1,320
Projects
1,180
1. SP 288 Int. Gen. Electric, La Guaria Power
plant
30
2. SP 158 Texas Petro. Co.
50
3. SP 172 Amiatic Petro. Co. -Caribbean Petro.
90
SP 173
"
"
=
-Venez.Oil Concess.
Ltd.
280
SP 174
"
"
"
-Colon Devel. Co.
20
SP 175
"
"
"
-Petro. Utensiles
Co.
10
4. SP 240 Socony
700
Small Tools
20
Tinplate
200
Copper manufactures
120
Copper alloys
4
Lead and manufactures
45
Machinery and Vehicles (including parts
and accessories)
1,944
Civilian
1,245
Electrical
100
Industrial
310
Textile
50
Transmission belting
10
Mining equipment
58
Telephone and telegraph
42
Railways
50
Water filters
15
General Industrial
85
Regraded Unclassified
-2-
Agricultural
535
Automobile (ports only)
100
Trucks
200
Projects
699
1. 7105 Alfredo Sevard & Co.
Coustic god end Chlorine
plent
32
2. #276 Industria Lactia
72
Powdor milk plant
3. #268 Int. Con. loc.
120
Power plant expansion
4. 158 Texas Potro Co.
75
5. 172 Asictic Petro-Coribboan
Pot.
20
173
"
"
-Vonez. Oil
Commissions Ltd.
65
174 Asintic Potro. -Colon Dev.
Co.
10
4175
"
n
-Potro.
Utensilos Co.
5
240 Socony
300
Printing Apparatus and l'atorial
30
Chomicals and Drugs
1,180
Medicinals and phormoceuticals,
(Including absorbent cotton)
30
Disinfectants
15
Copper sulphate
12
Acetic cid
10
Murictic acid
10
Sulphuric coid
110
Cr.lcium carbide
50
Sodium salts
220
Sodn nsh
235
Caustic soda
150
Anhydrous Ammonic
12
Chlorine
10
Prints, pigments, and vernishes
100
Ammonium sulphate
30
Potassium sclts
13
Dynamite, cans, and fuses
50
Tooth proto
4
Other chemicals
100
Instruments for arts and trades
40
Clinical and luboratory apparatus
40
Crown caps
26
Nutchos
107
Miscellaneous
630
Pon-Amorican Airways
70
TOTAL
12,000
Alloonto additional shipping to foodstuffs and project matorial.
Regraded Unclassified
Royal Norwegian Embassy
February 25. -43.
WASHINGTON. D.C.
Hon. Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D.C.
Dear Kr. Morgenthau:
"ay I in this way thank you for
the statement you have made in regard to the 3rd
Anniversary of the invasion of Norway.
AB soon AB the special publi-
cation 1s off the press I shall be delighted to send
you some copies of it.
Faithfully yours
Hun, Olar
Hans Olav
Counselor of Embasey.
HO/ba
Regraded Unclassified
108
February 22, 1943.
Dear Mr. Olav:
I refer to your letter of February 16 in
which you suggested that I send you a brief state-
ment on the subject of Norwegian participation in
the cause of the United Nations which might be
incorporated in a booklet for distribution by the
Royal Norwegian Information Service.
Such a statement is enclosed and I am happy
indeed to be offered the opportunity of making it.
Sincerely,
(Signed) H. Morgenthau, Jr.
Secretary of the Treasury.
Mr. Hans Olav,
Counsellor, Royal Norwegian Embassy,
Washington, D. C.
File to Thompson
Photo file in Diary
Regraded Unclassified
109
Statement of Henry Morgenthau, Jr., Secretary of the Treasury,
for the use of the Royal Norwegien Information Service.
The saga of Norwegian courage under the Nasi yoke
during the past three years has been a source of inspiration
for all of us engaged in the global struggle against the
Axis. Facing tremendous odds, the people of Norway have
shown by their organized resistance how dearly they cherish
the freedom that temporarily has been taken from them.
The people of the United States are proud to have as
allies, too, the brave young men of Norway who have escaped
from their imprisoned homeland in order to carry on the
fight for deliverance from the outside. The gallant manner
in which they are shouldering their full share of the burden
in their own Merchant Marine, Navy and Air Force stirs us to
do everything humanly possible to hasten the day of that de-
liverance.
Regraded Unclassified
Royal Norwegian Embassy
WASHINGTON. D. C.
February 16, 1943
Hosse Henry Lorgenthau, Jr.
ashington, D. C.
Dear "r. Margenthaw:
On April 9th, 1943, it will be three years ninco the Germans Inunched their =urprize
attack on Norway, end in this connection the Royal Norwegian Information Service plane
to 188410 e booklet containing statements by A number of representative Americans ro-
garding the Norwegian war effort.
Ever since the invasion the Norwegians have been fighting the enomy on two fronts --
within the country end from abroad. Among Dorwegions thona have como to be known AS
the "hor" front" and the "outer" or "external front."
King Haakon and the Royal Norweginn Government, now situated in London, have been direct-
ing the fight from abroad under an express mandate given them by the last free Norwagier
parliament. Fighting today on Norway's external front, and side-by-cide with American,
British and other Allies, are the Norwegian Merchant marine, the Royal Norwegian Navy
and the Royal Norwegian Air Force. At stations in England and Scotland the Royal Nor-
agien Army is ready for the call to action. Both the Navy, Air Forõe and Army have
been completely reorganized, re-equipped and retrained during these three years, and to
a large extent the recruits for these services have been drawn from the young men who
mainly through their own resourcefulness have succeeded in escaping from occupied Norway
On the home front more than 98% of the people have consistently stood firm in their op-
position to the Germens and to Quisling, despite privation and terror. Both as indivi-
duale and 0,0 members of groups or organizations the Norwegiens have remained loyal to
the ideals of democracy and freedom. You have doubtlessly read of the courageous
fights that have been and are being made against the Nazia by the Church of Norway, by
organized labor, by athletic organizations, by the school teachers, doctors, lawyers,
publishors and virtually all other professions, end even by the children.
To should greatly appreciate receiving from you 0 brief, preferably informal statement
of about 100-200 words regarding Norway's fight (or any phase of it that has been of
particular interest to you) for inclusion in our projected booklet. Bouldes being made
available for general distribution, this publication will be apread among members of
the Norwegian fighting forces and of the merchant marine. An effort will also be mode
to send some copies into occupied Norway.
The United States Office of War Information has expressed interest in this plan and
has requested use of the statements received for radio broadonatu to occupied Norway,
Hould you kindly lot mo know whether it will be possible for you to cooperate in
in project? If so, it will be necessary that your statement reachec un not lator
than March lat.
Thank you for your kind attention.
Yours very truly,
Haus Olar
Hans Olav, Counsellor
Regraded Unclassified
111
NOT TO BE RE-TRANSMITTED
BRITISH MOST SECRET
U.S. SECRET
TREATMENT TREASURY COPY
0, & FEB" 13 EYES
OPTEL No. 64
Information received up to 7 A.M., 25th February, 19/9.
1. NAVAL
Russian varships have sunk an enemy 8,000 ton transport in the BARENTS
Area.
2. MILITARY
TUNISIA. No further report yet received.
RUSSIA. Russian thrusts towards OREL from the South have been supple
mented by pressure from the North. Along the Northern flank of the salient in the
DONETS Bend German counterattacks combined possibly with thaw conditions appear to
have checked Russian progress. Russian attacks along the River MIUS Front north of
TAGANROG are meeting strong German resistance.
3. AIR OPERATIONS
WESTERN FRONT. 24th/25th. 119 aircraft were sent out - WILHELMSHAVEN
115 (1 crashed), RUHR Area 4. The attack on WILHELMSHAVEN was made through thick
cloud.
TUNISIA. 22nd/23rd. Wellingtons bombed BIZERTA, one is missing. 23rd
166 Bomber and over 400 Fighter sorties were flown in support of ground forces in
the KASSERINE Pass area. During anti-shipping operations 5 barges carrying lorries
were sunk and others damaged. Enemy casualties 4, 2, 3. Allied 8, nil, 5.
SICILY. 22nd/23rd. 27 bombers attacked PALERMO and shipping in the
Herbour. 23rd. About 25 tons of bombs were dropped at MESSINA. The train ferry
terminus was hit and elsewhere considerable damage was claimed.
MEDITERRENEAN. 22nd. Escorted U.S. Mitchells sank & large ship between
SICILY and TUNISIA. 24th/25th. A large ship in en escorted convoy is reported to
have been torpedoed and sunk off SICILY by a Wellington.
LATE NEWS.
TUNISIA. 23rd. Centre. Enemy withdrawing KASSERINE GAP. At 6 p.m.
Valley two miles northwest of Pass reported clear, 300 Italians captured. North.
Light enemy attack in West OUSSELTIA Valley successfully held.
Regraded Unclassified
112
NOT TO BE RE-TRANSMITTED
13
COPY NO.
BRITISH MOST SECRET
U.S. SECRET
OPT&L No. 70
Following is supplementary resume of operational events covering the
period 18th - 25th February, 1943,
1. NAVAL
One of H.M. Cruisers on passage to ICELAND (c) sustained considerable
damage from weather on 19th. Photographic reconnaissance confirms the presence of
most of the German heavy ships in BALTIC or German North See ports. GREISENAU at
GYDNIA and the uncompleted 8" cruiser SEYDLITZ at BREMEN seen to have been dia-
mantled. Photographs of building yards suggest that the rate of U-boat building
remains fairly constant.
MEDITERR/NEAN, Convoys of 9 and 6 ships have arrived at TRIPOLI
(L) and MALTA respectively during the week. Reports received during week of 9
enemy ships torpedoed by H.B. Submarines. By end of January 110 ships in all hed
been transferred to Italian ports from South of France since enemy occupation.
Some have alrendy been identified in service to TUNISIA.
SUBMARINE WARFARE. Wook saving 24th. Two attacks on convoys took
place in Mid-Atlantic, 27 attacks on U-Boato by surface and 4 by aircraft during
same period of which 6 by surface craft and 5 by gircraft are considered promising.
SHIPPING CASUALTIES. During the week 20th-26th inclusive 19 shipe
ware reported to have been torpedoed. Four British (1 A tanker), 4 Norwegien
(Two tenkers) 3 U.S. ships, and one Penamanian tanker WORE torpedood in attacks
on en outward bound convoy in the NORTH ATLANTIC. One U.S. ship and a Panamenian
tanker (still aflost) also in convoy, were torpedoed in N.F. Approaches, n. British
ship was torpedoed N.F. of the Asores, A British tanker S. of Madeira, B. Brazilian
ship N.A. of BRAZIL, A British ship E. of CAPE AGHULAS and a U.S. ship, which WCU
towed into port. In the MEDIT.RU BAN, in addition, es British ship was damaged by
aircraft in ALGIARS Harbour.
TRADE. Imports in convoy into UNITED KINGDOM week ending 20th
431,000 tone, of which 163,000 oil. or 300 ships totalling about 900,000 tona in
FRENCH MEDITER ANEAN ports on German occupation reported that only about 50,000
tona will remain under French control exclusively for Corsican trade. Except for
ships required by Germans for Spanish trado, all others are boing sent to Italian
ports where they will be divided between Germans and Italians.
2. MILITARY
TUNISIA. 8th Army. The general line of Zighth Army in non within
6 miles of MARETH. Maintenance of our forward forces through TRIPOLI port ia
sufficient for present scale of operations and numbers troops involved, The 8th
Army came under command of General Alexander in TONISIA on 20th. General Filson
succeeded Gener/ Alexander as Commander in Chief Middle Bast on 16th.
First Army. One of reasons for withdrewal by enemy forces
KASSERINE area is thront to MARETH positions by 8th Army. French Forces in
Central Sector are tired and their maintenance 10 very stretched but remain in
good heart. U.S. and British forces engaged in fighting last week have been
mixed and intention 1a to reorganize under normal separate national and formation
commanda as soon as possible. Lerge part of lossos during U.S. withdrawel.
made good.
FAR
EAST.
BURMA.
North of DOWBAIK Japanese counter-attock
supported by mortar fire has forced our troops to withdraw alightly. RATHEDAUNG
front no change. Small enemy forces have boon activo in KALADAN VALLEY.
FRANCE. Four moro divisions (S.S. Totenkopf, 327, 333, and 319
Infantry Divisions have lift, reducing Gurman divisions FRANCE and Lev Countries
to 30, First 3 alrendy identifico RUSSIA, 4th my bo in CERTAITY on route Wheter. there
Regraded Unclassified
11311
-2-
3. AIR OP&RATIONS.
WESTERN FRONT. DAY. Chief events U.S. Fortress attack
WILHELMSHAVEN and R.A.F. Ventura attack DUNKIRK docks with primary objective
German armed raider.
NIGHT, Out of 1160 Sorties, 20 aircraft los. Fotur main
attacks BREMEN, WILHELMSHAVEN, NUREMBURG and COLOGNE. 222 sea mines use, 3
aircraft missing. Coastal Command aircraft attacked 2 convoys off DUTCH COAST,
3 ships totalling about 3,500 tons hit.
NORTH AFRICA. Air operations chiefly in support of our troops
during operations in KASSERINE PASS area. Bombing attacks wore mede on MARETH
line combined with heavy bombing of GABES area.
MEDITERRANEAD. Particularly successful weak against unomy
shipping by R.A.F. and F.A.A. aircraft from MALTA and R.A.F. and U.S. medium
bombers from NORTH AFRICA, 14 ships either sunk or seriously damaged, including
one cruiser damaged, two escort vessels probably sunk and one 10,000 ton tanker
sunk. Numerous attacks by day and night on industry, docks, airfields and railways
in SICILY and on mainland.
RUSSIA. Air operations over whole front suem to have been
restricted by weather but considerable activity meintained in Caucasus whore
Russians probably have air superiority over TAMAN bridgehend and have repeatedly
attacked coastal towns. Germans making considerable use transport aircraft this
area for evacuation superfluous personnel and wounded.
4. EXTR:CTS FROM PHOTOGRAPHIC AND INTELLIGENCE REPORTS ON RESULTS OF AIR ATTACKS
ON ENEMY TERRITORY IN EUROPE.
MILAN. 14th/15th February. Extensive materi. 1 damage to
centre of torn and factories. Heavy casualties increased by panic. One station
hit causing interruption railway services, goods station also hit. Two hotels
near main station, one with light A/A battery on roof, completely demolished.
ISOTTA, BIANCHI, CAPRONI and BROWN BOVERI factories reported damaged.
SPEZIA. Photographs confirm damage to buildings on quay
and in anti-submarine base.
TOURS. Photographs confirm damage to engine shada and adjacent
building, rolling stock and railway workshops.
5. HOME SECURITY.
Estimated civilian casualties week onding 24th - Killed 13,
seriously wounded 14.
Regraded Unclassified
114
February 26, 1943
9:48 a.m.
HMJr:
Hello.
Clarence
Francis:
Mr. Secretary. Good morning.
HMJr:
Hello, Mr. Francis.
F:
Say, we had a - I had a talk with Bill last
night and gave him the green light.
HMJr:
Wonderful.
F:
Now the - the thing that I just wanted to clear
18 - in your mind - I'm sure you understand it,
and that is that we never tell anybody to do a
thing.
HMJr:
I understand.
F:
We leave it entirely for his own final decision.
HMJr:
I understand.
F:
But 80 far as we're concerned, he's got the green
light for 1943 on the basis that you and I talked.
HMJr:
Well, did you get the impression this is some-
thing he wants to do?
F:
Oh, yes, yes. He is - he's quite - well,
apparently since your talk with him the other
night.
HMJr:
Yes.
F:
his mind has been turning on organization
HMJr:
Yes.
F:
....size of - of the task, the kind and type of
men....
HMJr:
Right.
F:
the availability of the men
HMJr:
Yes.
Regraded Unclassified
115
- 2 -
F:
can he get the men
HMJr:
Yes.
F:
what will be the attitude of the public and
others on having a man not skilled in finance
HMJr:
Yes.
F:
heading it
HMJr:
Yes.
F:
and he's got many thinge of those, all of which
seem very sound questions and which have to be met
HMJr:
Yes.
F:
which can be met.
HMJr:
Yes.
F:
But I thought his approach to it was very sound,
and I suppose we talked for a half an hour and -
and developed different points.
HMJr:
Good.
F:
So my guess is -- and I don't want to anticipate
him any
HMJr:
No.
F:
is that he will want to talk with you. I
think it would be advisable to - to talk with him,
and that he just wants to settle and come back
and have us sit down over the different problems
of organization to see whether he can enlist help
of various people, not just ourselves, in getting
the right kind of people
HMJr:
Fine.
F:
for it, and that's what I think he's going to
want, and I think he's going to - I think without
any question he will indicate to you very definite
interest, but he was most sincere in your - for
your welfare, the Government's welfare, to be very
sure that every point has been looked at and -
before any announcement 18 made or anything really
done.
116
- 3 -
HMJr:
Have you any doubt in your mind he can do the
job?
F:
No, sir.
HMJr:
No.
F:
No, as I visualize the job, it's - 1t's the set-
ting of a national organization right down to
the grass roots.
HMJr:
That's right.
F:
And we've all done that. He's come right up
through it.
HMJr:
And he can have your help and advice.
F:
Oh, definitely. You see, when Bill - when Bill
came out of college some eighteen or nineteen
years ago, he came right with me in the sales
company.
HMJr:
I see.
F:
And he's come right on up through.
HMJr:
Fine.
F:
And today he is president of our sales company
and he does roll it
HMJr:
I see.
F:
right along. I'm plugging for him here
while he's away. We've all got to take....
HMJr:
I see.
F:
extra things while he's down there. But
he knows it.
HMJr:
Well, I - - I appreciate it, and I'm going to ask
him to come right over.
F:
Fine. If we can be of any help, let us know.
HMJr:
Well, you - you can, and I'm going to - I'm
going to take you up on that.
Dogradoed
117
- 4 -
F:
All right.
HMJr:
Thank you.
F:
Thank you.
118
February 26, 1943
10:33 a.m.
HMJr:
Marriner?
Marriner
Eccles:
Yes, Henry.
HMJr:
Good morning.
E:
How are you this morning?
HMJr:
I'm fine. Marriner, how would you and your
twelve presidents like to come over and have
lunch with me Monday?
is
Well, that would be fine. Let's see - we were
going to come over anyway and meet with Dan at
two 80 we might just as well come at one.
HMJr:
Come at one and have lunch with us, and then we
can....
E:
That'll be - I think that would be fine.
HMJr:
....meet after - now will there be twelve?
E:
No, there'll be eleven. B111 Day isn't coming.
HMJr:
There'll be eleven, and....
E:
And unless he's sending an alternate and I
haven't heard yet, so that
HMJr:
Oh.
E:
there're - I think you can just count on
eleven.
HMJr:
And should there be anybody besides yourself
from the Fed.?
E:
Well, I - that - that, of course, is entirely up
to you, but what we've been doing
HMJr:
Yes.
E:
....in connection with this drive is - I mean
in connection with the - with this Victory
Fund organization, of course, we've considered
that that was really - I was the liaison between
the Board and the - and the banks.
Regraded Unclassified
119
- 2 -
HMJr:
Well, that suits me.
E:
So that I - - I don't think it's necessary. We -
in the meetings before over there, the Board
have felt satisfied to have me represent them.
HMJr:
Well, then let's - see, because we don't have as
good accommodations as you do, see what I mean?
E:
Well
HMJr:
I mean for feeding.
E:
Well, why don't you come over here then?
HMJr:
No, no, no....
E:
(Laughs)
HMJr:
I meant if I had to have the whole Board, I
meant.
E:
Yes. No, well, I don't think that's necessary.
HMJr:
Well....
E:
They didn't expect to meet at - in the afternoon
80
HMJr:
I mean I - I don't want to be rude to anybody.
E:
No, no, well, I'm - I'm sure they'll understand.
It'll be perfectly...
HMJr:
Well, then I'll look forward to you and the
eleven, and - and there'll be Bell and - and I -
I think that's enough, isn't it?
E:
Well, that's quite a crowd.
HMJr:
Oh, no, no, we can take care of that nicely.
E:
Can you?
HMJr:
Oh, very nicely.
E:
Well, that - that'll suit us fine. I'm - I'm
sure that - then we'll stay right on there with -
with - I understood you had an appointment at two.
Regraded Unclassified
120
- 3 -
HMJr:
Yeah, well, I'll work that out with Bell.
You had an appointment with Bell at two?
E:
Well, what we were going to do, we figured that
we would - you see, we're going to meet you at
three, and I had suggested to Dan that that -
that that might not give us too much time to
discuss the subject of this sort
HMJr:
Well....
E:
with twelve people in,and 60 he said, "Well,
why don't you come over at two and meet with
me, and then whenever the Secretary 1s through..."
HMJr:
Yeah.
E:
"....why, then we can meet with him."
HMJr:
Okay. Well, I'll....
E:
So that was the way the thing was arranged.
HMJr:
Well, let's leave it that way.
E:
So we'll come over at one, and then we'll -
the whole afternoon is - will be available.
I've told the presidents to plan on spending
the afternoon in connection with this work.
HMJr:
Good.
E:
So they're planning on it.
HMJr:
Fine.
E:
So we'll see you at one o'clock then.
HMJr:
Thank you.
E:
All right.
121
February 26, 1943
3:25 p.a.
Donald
Davis:
Don Davis talking, Mr. Secretary.
HMJr:
Hello, Mr. Davis.
D:
Yes, sir.
HMJr:
Mr. Davis, Mr. Nelson seemed to want you 80
much and you've seemed 80 reluctant that - well,
on - I didn't think it would be wise to push it,
you know?
D:
I see. Well, I tried to spell it out to you in
terms that if I was asked to do that, I would
not consider any service under duress, but on
the other hand, my personal preference right now
is here.
HMJr:
Well, I thought I would take cognizance of that,
and I wasn't going to make an issue out of it.
D:
Yes.
HMJr:
Well, I just thought I'd tell you.
D:
Again say I express my appreciation for the con-
sideration of no.
HMJr:
Right. (Laughs)
D:
And the manner in which you've handled it has
been very helpful to no.
HMJr:
Well, anyway I hope to see you again sometime.
D:
Thank you very such, sir.
HMJr:
Goodbye.
D:
Goodbye.
Regraded Unclassified
122
THE SECRETARY OF THE NAVY
WASHINGTON
February 26, 1943
My dear Henry:
Confirming my verbal statement to you on Wednesday, I am glad
to advise you that the Navy will provide the Coast Guard for your use
a brand new replacement Lodestar sometime prior to March 1. Under my
instructions, this plane will be fitted up with an interior arrangement
similar to the one you are now using.
Sincerely yours,
Frankdnox
Honorable Henry Morgenthau, Jr.
The Secretary of the Treasury
Washington, D. C.
Regraded Unclassified
123
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
TO Secretary Morgenthau
February 26, 1943
FROM Joseph J. O'Connell, Jr.
You have asked whether there is legal objection to
employing someone in the Treasury Department who is at the
same time on & leave-with-pay status from private employment.
The statutory hurdle most directly in point is section
66 of Title 5 of the U. S. Code. This statute provides that
no Government employee "shall receive any salary in connection
with his services 8.8 such an official or employee from any
source other than the Government of the United States and
no person shall make any contribution to, or in any way
supplement the salary of, any Government official or employee
for the services performed by him for the Government of the
United States."
The Attorney General has rendered opinions on this sort
of situation on several occasions, and in each he has, in
substance, stated that the prohibition is against the payment
by anyone other than the Government of the employee's salary
in connection with his services as such public official, and
that the mere fact of compensation from a private employer
does not, without more, preclude employment by the Government.
Thus he held that the Chancellor of the University of
Puerto Rico could, while on leave of absence with pay, be
employed as Regional Administrator of the Puerto Rican Admin-
istration (See 38 Op. A. G. 294 (1935)). Likewise, he held
that a professor at M. I. T. could be granted leave of absence
with pay in order to accept employment as a consultant in the
service of the United States. The most recent pronouncement
of the Attorney General on the subject is in an opinion
addressed to the President dated April 27, 1942. In this
opinion the Attorney General states the general principles
applicable to this type of situation, and in so doing cites
with approval the rulings in the cases to which I have already
referred.
Regraded Unclassified
124
Secretary Morgenthau,
2.
Under the circumstances, it is quite clear
that there is no legal objection to our employing
a man who is on leave of absence with pay from
private employment unless it appears that compensa-
tion is being paid to him by his private employer
"in connection with" his services for the Government.
This, I take it, is clearly not the situation in the
case you have put to me and hence there can be no
doubt but that it can legally be done.
125
MEMORANDUM FOR THE SECRETARY.
February 26, 1943.
Mail Report
The lead gained last week by opponents of the
Ruml Plan was increased this week. There were only
25 who wanted adoption of the plan without any amend-
ment. Forty-three letters, however, stated flatly
there must be no forgiveness of taxes.
However, the general point of view might be summed
up as, "Don't forgive taxes, but get on the pay-as-you-
go basis". There is very definite approval of some
sort of pay-as-you-go method of taxation, the total
number of letters endorsing the idea in general having
passed the 100 mark, while 60 letters contained sug-
gestions, many of which implied this approach to
income tax collection. There were 44 letters of
inquiry, and scattered suggestions for discounts to
award complete payment by March 15, and similar ideas.
The Victory Tax is still unpopular, though mail
mentioning it has greatly fallen off. The ratio is
9 unfavorable to 2 favorable. A number have suggested
that refunds on the Victory Tax be applied to 1942
obligations, or to payment for Bonds. A number of
businessmen stated that the concurrent payment of 1942
and 1943 taxes would wreck them, while 7 individuals
protested any discussion of higher taxes.
Four CIO Unions requested the raising of present
exemptions, and the. repeal of the Victory Tax. Strong
opposition to taxation of men in the service was ex-
pressed in several letters.
There were 35 Bonds sent the Secretary for redemp-
tion, and of the 8 received Friday morning, 7 were from
either North or South Carolina. Complaints continued
to specify delay in receiving Bonds, particularly
families of men in the service, or employees in some
connection for the War Department. There were 36 such
complaints, out of a total of 43.
Regraded Unclassified
126
- 2 -
Memorandum for the Secretary.
February 26, 1943.
There were only 3 complaints of the use of the
mailing tube which is said to be too expensive and
elaborate for the purpose.
There were 8 unfavorable letters regarding the
notice that 3-3/8% Treasury Bonds, 1943-47, are to he
called. Three letters enclosing clippings about the
stock market pointed out the danger of B. rising market
so far as Bonds are concerned.
There are increasing reports of cashing Bonds to
pay income taxes, or for no specified reasons, and
many threats that the Bonds already bought must be
cashed, or payroll deductions changed, because of tax
demands during the current year.
Among many suggestions, the following are out-
standing: Revoke redemption privileges; provide more
sales facilities, especially at points where prospec-
tive purchasers have cash in hand; employ insurance
salesmen to promote Bond sales; allow Bonds to be used
8.5 collateral for tax loans to prevent cashing in.
In the miscellaneous mail there was strong approval
of the Treasury's statement in regard to agricultural
credit agencies. Eleven banks commented favorably.
There were 2 or 3 scattered expressions of disapproval,
one of the best of which is contained in the abstract.
Continuation of the salary ceiling of $25,000 was
favored by 30 opposed by none.
Congressional mail, including Bills submitted for
consideration, was unusually heavy. Many of the letters, as
referred, followed the usual pattern of Treasury mail,
being inquiries on income tax matters, suggestions,
Bond comments, etc.
GaForbresh
Regraded Unclassified
127
General Comments
M. W. Thatcher, Vice Chairman, National Executive
Council, Farmers Educational & Cooperative Union of
America, St. Paul, Minn. As one of your friends and
strong public supporters, I feel perfectly free to
criticize your attitude toward the new type of credit
being offered by R.A.C.C., to induce farmers to increase
production of certain designated war crops. Let us
take flaxseed to illustrate our point. It is & hazard-
ous crop to raise, but a large domestic production is
essential to meet wartime requirements. If the farmer
gives up the production of less hazardous crops - which
have been part of his normal production schedule and
are more certain of maturing - and, instead, plants
flaxseed to support the war effort, he should be given
some protection by the Federal Government on this risk
crop. In substance, the Federal Government says to the
farmer: "You furnish the work and the land, and we
will loan you the money you need for seed, gasoline,
oil, etc. If the flax crop fails to mature, we will,
on proper proof of loss, cancel the note which you
have given to R.A.C.C. Now compare the limited risk
the Government assumes in this kind of an agreement
with the farmer, to the full risk it assumes when
private industry converts its plant from peacetime
production to wartime production. I believe that the
position which you have taken on this matter -- that
a loan to a producer of flaxseed, for example, under
conditions which I have outlined, is to be regarded
as "loose credit" -- is most untenable. It is a danger-
ous position for you to take, when the lack of induce-
ment to put in risk crops could easily result in our
having 8. much smaller supply of these crops than is
needed. ... I am enclosing the newspaper article which
states your position and quotes some of your remarks.
I believe it must rank, if it is true, as one of the
most demoralizing news stories which has come out of
Washington in recent years. I am afraid that the
farmers will feel most resentful of the position which
Regraded Unclassified
128
- 2 -
the Associated Press states you have taken, and un-
fortunately, I believe they have a right to feel this
way. In most parts of the country the banks are still
charging 7% interest on production loans. I have
heard of no banker who is willing to share any of the
financial risks in connection with farm production --
even on risk crops which the Federal Government de-
clares are 80 essential to the war effort.
Congressman Reid F. Murray forwards letter he has re-
ceived from Frank D. Chapman, President, Berlin Chapman
Company (Canning Machinery), Berlin, Wis., which reads
as follows: As a small manufacturer employing between
four and five hundred men, I an trying to write some-
thing constructive. We are not in the class that
couldn't get work because we are able to get all the
work we can do. We also have 8. surplus labor supply.
*** We are also able to get material on a reasonable
basis. Our factory at present is engaged in making
rubber condensers, 100 Octane gas, Ships' Condensers
for Escort Vessels and Merchant Ships. To properly
turn out the required amount of production, it has
been necessary for us to expand our plant facilities
enormously. Our big question is just one thing, this
is 8. Necessity Certificate. As you know, 8. Necessity
Certificate is a directive by the Treasury Department
allowing us to depreciate our new facilities 20% a
year for the duration of the war, in case the war is
finished in less than five years. So far, we have been
successful in getting Necessity Certificates, but the
time element has given me gray hair and the creeps.
It takes too long to get a Necessity Certificate through
the Treasury Department so the manufacturer can feel
safe in expanding his facilities. *** It takes from
six months to & year to get these. During this time
we are forced to buy, or deem it our patriotic duty to
buy, more machinery to get out equipment on time, but
the financial end of it is that if these Necessity
Certificates are finally not granted, this company is
sunk. I am just wondering, although I do not wish to
make a. complaint, if some attention couldn't be called
to the Treasury on the slowness in getting out these
Certificates. ***
Regraded Unclassified
129
- 3 -
W. Wilkinson, President, The Bank of LaCrosse,
LaCrosse, Va. I see your statement in the press this
morning regarding the competition of Production Credit
Associations with our local banks. Glad that some
Government Agencies realize the unfair competition
non-Government enterprises have to contend with.
Look at this advertisement for business (loosl Produc-
tion Credit Association). They neither pay taxes nor
income, yet they are protected by taxpayers' money
against loss. This one has 8. surplus of $27,000.00,
yet they have never paid any tax nor income. I hope
your suggestions will be put into effect at once.
J. M. Burkholder, Secretary, James Mercantile Co.,
Encinal, Tex. I am also in favor of rural banks handling
seed and production loans and do not favor Government
Agency competition. In our section of the country, the
rural banks exact from B to 10% interest on small loans
and are reluctant to renew loans from season to season,
in cases where it is necessary, and when conditions get
bad, they all want 8. borrower to pay up. The Federal
lending agency will lend money for 41% and don't re-
quire such rigid repayments; it is for these reasons
that many are changing from the rural bank to the Fed-
eral Lending Agency. Personally, I think if banks could
charge no more than 6% on small seasonal farm and crop
production loans, and 5% on livestock and farm machinery
loans of longer terms, that the rural banks would soon
regain most of the lost business, and the Government
would be relieved of the burden that should be borne by
the private banking system. ***
K. A. Riner, Vice President, Farmers State Bank, Mentone,
Ind. Referring to your press conference wherein you
stated that you hoped that rural banks would get first
crack at farm war production loans", and that represen-
tatives of 6,000 to 7,000 banks had complained of
Government competition in loans to farmers for war
production, by the Regional Agricultural Credit Corpora-
tion, and further you believed that rural banks would
be in a botter condition to cooperate with the new
Victory Loan drive in April if they were "in a happier
Regraded Unclassified
130
frame of mind", we are wondering if you appreciate the
seriousness of the situation with respect to country
banks in their effort to survive the onslaught of, not
only the recently revived Regional Agricultural Credit
Corporation, but the Production Credit Associations,
and other subsidized Federal Lending Agencies.
Country bankers, although eager and willing to continue
to cooperate with the Treasury Department in its War
Bond selling campaign, are rapidly approaching the
position where they will have little, if any, time to
devote to any activity other than that of endeavoring
to protect their institutions against the co-ordinated
activities of the Regional Agricultural Credit Corpora-
tion, The Production Credit Associations, and the
Agricultural Adjustment Administration.
M. A. Perry, Cashier, New Harmony National Bank, New
Harmony, Ind. It is a great satisfaction to the country
banks of this country to see you take B. stand in their
behalf. It seems to me that this Administration has
taken the attitude that a bank is of no importance in
their community, and that they should be put out of
business, not by direct legislation, but by setting up
agencies to compete with them.
We have in this
bank more than a million dollars of deposits with less
than one hundred fifty thousand dollars in loans.
The yield of the Government securities is 80 meager
that we must have local loans to overbalance this low
income.
When our country wants to do their financ-
ing, they call upon the banks. They have never failed
to do their duty. They do it without one single
penny of compensation. Then when they follow up with
some damn fool law which robs us of our just income, we
feel that we have & just complaint.
This
bank
is making very meager profits. We have five employees,
three who are being paid less than $1,000 per year. We
are within twenty miles of a. defense plant where the
employees are being paid from $50 to $100 per week.
How do we keep our help? They are just loyal, knowing
we cannot pay more. It they were Union help, we would
be compelled to fold up and close.
I hope you will
131
- 5 -
use your influence to see that these Government Agencies
cease to operate, that we may be able to regain our
earning power in order, if for no other reason, that
we can pay our help what they earn, and what they justly
deserve. We would also like for you to do all you can
to have us placed in the class where we play an im-
portant place in the winning of this war. A helper in
a bank is of little use for at least the first year.
He is of little use until he has that training. We
must have this help when you ask us to put over your
financing. ***
Everett L. Williams, Sparta, Wis. Congratulations on
your radio talk. It was sincere and honest, and given
in the kind of way folks like to hear. ***
132
- 6 -
Favorable Comments on Bonds
R. Lal Singh, Editor, India News, Los Angeles, Calif.
We Indians of Los Angeles were very proud and happy
when we received your warm congratulatory telegram on
January 26, 1943. INDIA NEWS was very happy to have
initiated and carried through the project of selling
a huge amount of U. S. War Bonds on the day tradition-
ally observed by Indians throughout the world as
Indian Independence Day. We appreciate too the full
difficulties faced by the Administration in its treat-
ment of a subject 80 delicate as the subject of India.
Because we appreciate this difficulty, we all the more
appreciate your kind words to us, and were very glad
to show by our actions that the Indians of Southern
California are heartily in support of the United
Nations, and wish the American and British and all
United Nations forces every possible success in de-
feating the Axis.
L. B. Slaughter, (Whole Distributor of Humble Oils),
Electra, Texas, in reporting excess Series E Bond
purchases, says: Living in 8. small town, doing
a very small business with some farming and stock-
raising on the side, should we close up shop and rush
to some defense work, or should we redouble our efforts
here and contribute our all to the job in hand? Not
having the physical stamina nor youth we once had, we
decided on the latter and went all-out at once, re-
ducing our help for farm and ranch work to one man,
and one man for the gasoline business. Our former
employees went to defense work immediately. We also
streamlined our domestic and social affairs, the extra
money that ordinarily was paid out each week for maid
service, gardener, wave sets, manicures, and even shoe-
shines (it is surprising what an application of paste
polish applied at home will do for an old pair of shoes),
was banned. This all went into a Defense Stamp fund.
We found that by 80 doing, we were able each month to
Regraded Unclassified
133
- 7 -
buy an additional $25 Bond. We also found that 8.
college football game, or a big league baseball game
could be almost as exciting heard over the radio, as
sitting in the reserved section. * Dollars thus
saved were added to our Stamp fund. By this careful
planning, we have been able to give not 10%, not 50%,
but every penny above our actual necessary expenses,
to the purchase of Bonds. Of course, we have not
been restricted to forty-hour weeks. Our weeks in-
clude Sundays, and they are from dawn to dark, but
we are not complaining, and do not feel that we have
sacrificed anything. In fact, when we hear our leaders
mention the rationing of gasoline and food as an addi-
tional sacrifice, we are a little ashamed, as we feel
that the only people, thus far, who have sacrificed
are those who have given their loved ones in line of
duty. We have, perhaps, been inconvenienced a bit,
but if there is any of the pioneer fiber left in our
souls, we will be stronger by having these experiences.
We are eagerly awaiting your reply, and trust that you
will understand that our Bond buying was for no sel-
fish purpose, but was the only way we knew to prove
our allegiance to the Government that has made it
possible for us to save and to share in its securities.
Regraded Unclassified
134
- 8 -
Unfavorable Comments on Bonds
A Number of Employees, (Five names given), Philadelphia,
Pa. (Letter referred by the White House.) We are en-
ployed at the Quartermaster Depot and most of us have
pledged 10% of our wages every week since last May.
Às yet, we have not received any Bonds, and if anyone
dares to inquire about them, we are either laughed at
or reprimanded and told there is a war going on.*
Why aren't we getting these Bonds, and why doesn't
some one look into this matter as they tell us Washing-
ton is to blame. We have noticed that whenever anyone
wrote to Washington, they were called down severely
about it in the office. As we do not wish to risk our
jobs, or be put on work where the remineration is
small, we will sign a few names of the people who are
also interested in receiving their Bonds. Please in-
vestigate the manner in which this place is conducted.
Ernest F. Farley, Esmond, R. I. I represent the
workers of the Union (Esmond Mills) 85 an executive
member. I am a member of the big labor management
committee, to help solve the problems of the Mill.
I am a member of the small labor management committee,
whose job it is to take care of the sale of U. S. War
Bonds and United War Fund. We were deducting from
the pay of the workers about 30% in November. This we
felt was not enough so we held an outdoor rally, and
we increased our payroll deductions to 92%. We re-
ceived 8 Minute Man Flag to fly over our mill. But
since then, through the lack of receiving our Bonds,
I mean the workers, of course, our payroll deductions
have dropped to 66%. The main reason for people stop-
ping the Bonds is the fact that it takes two to three
months to receive them after they are paid for.
We have asked some of the payroll workers why we are
not receiving our Bonds faster, and they tell us the
bank can't send them out any faster because of lack of
help. So we suggested to management to become an issuing
agent. *** Management does not feel as though they
Regraded Unclassified
135
- 9 -
would care to stand this responsibility because they
have to buy the Bonds, and if any were lost, they
would have to pay for them. # # # They were told by
the Providence office that they need not buy the
blank Bonds. They would send them to the Mill in case
management wanted them, and when they were paid for
($18.75) by a worker, type their name on the Bond and
a serial number along with the official stamp, give
the Bond to the worker and forward the money to the
barr. Then management inquired further and the Federal
Reserve Bank tells them this cannot be done, or at
least, it implied as much, but we did not see the
letter, and management maintains they must buy the
blank Bonds, and don't feel as though they care to
take this responsibility. In the meantime, our quota
is going down all the time.
Somewhere along the
line, someone, somewhere, is holding up these Bonds, and
our soldiers are not getting bullets for their guns.
# # I hope you will answer my letter and tell me just
what is what, because every time I go through the Mill,
workers say, where is my Bond? When an I going to get
it? I'm going to stop my Bond deductions, and they stop
their deductions, and this does not help the War effort.
George S. Stevenson, New Haven, Conn. I address this
letter to you directly because I regard the matter as
of real importance, and because I believe that my feel-
ings are shared by large numbers of those who are en-
listed under your good leadership for the Victory Fund
campaign in April. # # # You can depend upon the last
ounce of energy of every last one of us. In the New
Haven area our chairman already has his plans skil-
fully and firmly drawn in the determination to make
April surpass December, and it will be no easy task.
On the eve of that supreme effort is it fair that we
be confronted with that dismaying statement about
"coupon clippers"? I te with especial feeling be-
cause my particular job appens to be the lining up of
prospects for substantial purchases, and during the
past for days I have heard some bitter comments on that
136
- 10 -
stigma cast upon bond-holders. For example, I have
been asked, "If my savings of the past are branded
8.8 wrong, how about my savings of the present and
future? Now I beg you to take precaution that will
prevent the recurrence of such an unfortunate episode
as the "coupon clipper" statement. Please believe
me that I write this letter soberly and earnestly,
after several days of deliberation as to where my
duty lay.
Miss Catherine J. Towner, Detroit, Mich. Last week
while buying a War Bond, I was especially taken with
the number of people in line who were cashing in their
older Bonds. The man who wrote out my Bond mentioned
that he cashes in twice as many Bonds a day as he
writes out. ***
E. H. Benner, (Real Estate), Omaha, Neb. The Bond
issues which have been put out by your Department do
not seem to meet the needs of current business. As
you know, every business has to maintain itself in
liquid form, and if 8. Bond could be sold to the public
which Was immediately redeemable at face value, with
8. 2% earning power, a lot of the money which is kept
in banks to meet any sudden demand or exigency of
business would be invested in these Bonds. There
possibly would be considerable traffic in such Bonds,
but many businesses would not need to draw upon this
reserve and the funds would remain until some nec-
essity arose. Businesses like ours have money on
account belonging to our clients and we cannot jeop-
ardize that money because it is on demand, The demand
does not seam to come, but it is still there. ***
Honestly, I wish that the men in authority in Washington
would come to realize that the control of the businesses
of this country is not in the hands of people who have
a seven-year old mentality.
A. W. Lamm, Treasurer, Clay-Adams Company, Inc., N.Y.C.
We consider the attached letter received by us Feb. 5
from your New York Office, uncalled for, unjustified
137
- 11 -
and offensive. Inasmuch as we appear to have reached
no satisfactory agreement with our employees regard-
ing the 10% payroll deduction plan for the purchase
of War Bonds, a number of questions are asked which
are in the same category as the classic, "Have you
stopped beating your wife yet?" In the first place,
we felt that we had reached a satisfactory agreement
with our employees regarding the 10% payroll deduction
plan for the purchase of War Bonds and Stamps, inasmuch
as every one of our employees, with no exception, is
enrolled in the payroll deduction plan, and has been
since March, 1942. When we have been asked to submit
detailed reports by your office, either in Washington
or New York, we have been glad to do 50. Some of
our employees' deductions are for extremely small
amounts, whereas others run into much more substantial
amounts, far in excess of the 10% minimum, and these
varying deductions are governed, of course, by the
earnings of each employee in proportion to his obliga-
tions. # In answer to the last paragraph in the
letter, we enclose copy of letter we are writing to
Nevil Ford, State Administrator, returning the card
and the self-addrossed envelope, which is the informa-
tion they want 80 they will be in a position to know
whether or not to try to service us. All we can say
is that if their letter is a sample of their service,
we think it is better if they don't. We consider that
the type of letter we received actually defeats the
purpose for which it is sent. You refer to employers'
efforts to inspire their employees. Do you consider
that the attached letter is inspired or inspiring,
regardless of the facts in the case?
J. R. Weiler, Cashier, Harlan National Bank, Harlan, Ky.
I an writing to enter & one-man protest against the
arrangement of "Request for Payment", on the back of
U. S. Savings Series E Bonds. The first blank line is
very confusing, and as I understand it, has no meaning
or value on the $25 Bonds because a partial distri-
bution of a. $25 Bond cannot be made. Many owners sign
on the first line, and then if we have them re-sign on
the second line, the Federal Reserve Bank at Cincinnati
Regraded Unclassified
138
- 12 -
will not accept the Bonds, and we are required to
fill out Form PD 1522. In most cases, a bank clerk
must stand with his finger held on line 2, in order
to get the applicant for redemption to sign on that line.
This is a wastage of bank time. Blank line 1 should be
abolished. If this cannot be done, then lines 1 and 2
should be indicated by figures 1 and 2 set to their
left so that a bank clerk can hand the Bond back to a
customer and tell him to sign.on line 2. Any kind of
re-arrangement will be an improvement to the present
one. I hope you may see your way clear to readjust it
on future printings.
139
- 13 -
Favorable Comments on Taxation
Hansan Wu, Hansan Trading Co., N.Y.C. May I respect-
fully express my approval of your steadfast insistence
upon collection of the 1942 income tax and of your
resistance to the clamor of the proponents of the
Ruml and other tax cancellation plans. With the United
States engaged in a costly world war, taxes must be
paid by all of the people in extremely heavy degree,
not only to provide the sinews of war, but to reduce
Governmental borrowing and thereby retard the rate of
increase in our national debt which, if uncontrolled,
would threaten the very foundations of the America we
are fighting for. Under such conditions, isn't it mere
folly to scratch off taxes now due and about to be paid
into the Treasury on the ground that such & plan will
make it easier to collect future taxes? Has the old
American adage, "One bird in the hand is worth two in
the bush", become outmoded?
#
Many of my Chinese
relatives and friends are impatiently waiting to pay
their 1942 income taxes and my remarks express the
sentiments of several of them. A few of them have asked
me to ascertain the answer to & technical question. Are
they entitled to exemption for wives and minor children
whom they support, residing in China? I have been ad-
vised by a young lady clerk in the Internal Revenue
Department that the dependency of children under 18
years is allowed, but there is no provision made for
the wife of the taxpayer. Is this correct?
R. J. Simpson, Los Angeles, Calif. As 8. business
analyst and efficiency expert of twenty-five years'
standing, I wish to heartily endorse the opinion of
your legal adviser, Randolph Paul, as broadcast from
Washington to wit: To amortize 1942 income taxes over
a period of six years and by no means to waive any
portion thereof. The pay-as-you-go plan for the pay-
ment of current 1943 taxes is quite commendable, but
to waive a matter of billions in taxes, 1942, is far
beyond my understanding of business procedure. We, in
Regraded classified
140
- 14 -
California, suspect that there is a very powerful
lobby at work in Washington endeavoring to influence
prospective legislation to cancel 1942 taxes, and we do
hope that our President may lend his efforts towards
defeating any legislation favoring cancellation of
the said 1942 income tax. The U. S. Treasury cannot
afford such a loss as you may well know.
William W. Allen, Brookline, Mass. Keep up your
objection to the Ruml Plan. It is my hope that the
1942 taxes, as the tax law now stands, and part of
1943 taxes are collected in 1943.
A. Griffen Ojena, Los Angeles, Calif. *** If your
Dad were Secretary of the U. S. Treasury, he would
make every effort to prevent the $200,000 and over
income taxpayers from sabotaging the Treasury in regard
to 1942 income taxes. The Treasury's weakness in fore-
stalling capital "appeasement" will lead to insistent
and effective demand by the "big shots" through the
use of the small income taxpayers to an ultimate can-
cellation of the 1942 Income tax. The whole thing
seems unpatriotic, un-American, indecent, and an addi-
tionally criminal act against generations yet unborn.
V. E. Adams, Atlanta, Ga. The Treasurer of the U. S.
is 100% correct in opposing the Ruml Plan, or any other
plan to forgive 1942 income taxes due the Federal
Government. Last year was undoubtedly thep eak year
for war profits. ***
Regraded Unclassified
141
- 15 -
Unfavorable Comments on Taxation
Louis F. Lee, Lawyer, N.Y.C. I an inform that
under the present tax law members of the Armed Services
are subject to tax even on their pay for such services,
and that the only extra deduction that is permitted
is the sum of $300 for a. married non-commissioned
officer, and $250 for an unmarried non-commissioned
officer. Commissioned officers are permitted no de-
duction. I have talked with many persons concerning
this, and every one seems to be outraged at the fact
that anything received by any one in the Armed Services,
commissioned or non-commissioned, should be in any
wise taxed. Surely every one will agree that they are
giving their all for their country.
Harry R. Allard, Los Angeles, Calif. There is a lot
of comment on the fact that income tax is slow in coming
in. May I state that up to yesterday, the company for
which I work has not notified the employees as to their
earnings for the last year? I have been ready and will-
ing to pay my tax in whole, or in part, but cannot do
80 without the notification by the company. It has
been the policy of this company for several years to
be months late with our notifications. While not all
of the employees would pay up, many would pay far
sooner than they have done if they knew their exact
income.
***
Mrs. F. B. Jalu, Chillecothe, Mo. (Encloses clipping
on "abating tax liabilities".) I supposed the tax
question was settled for this year, so I filed my return
at the Federal Office here January 8, 1943, with Geo.
Dameron, and gave him my check for the year - $250.37.
It was sent to Kansas City and cashed. Now I want my
money back, except the first quarter - $62.59. And in
the future will be careful how I pay, but am always
prompt in paying taxes. Thank you, and tell me how
to get my money.
141
- 15 -
Unfavorable Comments on Taxation
Louis F. Lee, Lawyer, N.Y.C. I am informed that
under the present tax law members of the Armed Services
are subject to tax even on their pay for such services,
and that the only extra deduction that is permitted
is the sum of $300 for B. married non-commissioned
officer, and $250 for an unmarried non-commissioned
officer. Commissioned officers are permitted no de-
duction. I have talked with many persons concerning
this, and every one seems to be outraged at the fact
that anything received by any one in the Armed Services,
commissioned or non-commissioned, should be in any
wise taxed. Surely every one will agree that they are
giving their all for their country. ***
Harry R. Allard, Los Angeles, Calif. There is a lot
of comment on the fact that income tax is slow in coming
in. May I state that up to yesterday, the company for
which I work has not notified the employees as to their
earnings for the last year? I have been ready and will-
ing to pay my tax in whole, or in part, but cannot do
80 without the notification by the company. It has
been the policy of this company for several years to
be months late with our notifications. While not all
of the employees would pay up, many would pay far
sooner than they have done if they knew their exact
income. ***
Mrs. F. B. Jalu, Chillecothe, Mo. (Encloses clipping
on "abating tax liabilities".) I supposed the tax
question was settled for this year, 50 I filed my return
at the Federal Office here January 8, 1943, with Geo.
Dameron, and gave him my check for the year - $250.37.
It was sent to Kansas City and cashed. Now I want my
money back, except the first quarter - $62.59. And in
the future will be careful how I pay, but am always
prompt in paying taxes. Thank you, and tell me how
to get my money.
Regraded Unclassified
142
- 16 -
Omar Holliday, St. Louis, Mo. I am 78 and retired.
My wife and I have a joint income of about ten thousand
dollars -- all from dividends. We own stocks that we
could sell today and which would yield about $7,200
profit. All are long-term. As I understand it, under
the law of 1942, the tax on this profit is $1,800. If
I could clear this transaction NOW, it would give
great pleasure to pay this $1,800 into the Treasury at
once, or as soon as the transactions are cleared. In
other words, if the law permitted, I could turn over to
the Treasury $1,800 almost at once. Since I cannot
know what I may have to pay under the law now under
consideration, I am afraid to sell. It seems to me
that a change in the law to permit payments or clear-
ances as soon as the transactions are closed, might
bring a lot of money into the Treasury, which never
finds its way there under the present laws. ***
Miss Ernestine Conrad, St. Louis, Mo. I've got the
"Income Tax Blues" and here is why -- I am a salesgirl
and average $82.50 per month. Same salary this year
8.8 in 1942. Now, you figure out how I and other
white-collar workers in this low income group are
going to live and pay taxes too. (Gives weekly budget.)
*** Out of $3.00 per week that is left, must come
necessary personal toilet replacements, necessary
clothing and underwear replacements. Then, on top
of this, must come the income tax. In the meantime,
there has also been 8. compulsory Red Cross and Com-
munity Chest contribution.
So, Mr. Morgenthau,
you'll just have to put me in jail because I don't
see how I can pay the income tax the way you Washington
officials have it figured out. The Treasury Department
seems to think that people are not paying their first
income tax installment because they feel the Ruml Plan,
or 8. similar one, will go into effect. The plain
truth is that we in the lower brackets just cannot
afford income tax really, and at the same time main-
tain 8. half-way decent living standard and our health --
Regraded Unclassified
143
- 17 -
which surely in times like these must come first.
I can tell you many of us are praying for the day when
the Republicans get in again. We all feel like it
can't be worse under them, and it might be 80 much
better! It was with a feeling of positive revulsion
that I read Mrs. Perkins' proposal to increase the
Social Security rate. How are you going to squeeze
anything more out of us? Mr. Morgenthau, they say you
do not read mail like this, but I hope and pray that
your secretary will pass my letter on to you for your
personal consideration. If not, then I and thousands
of others like me, are sunk! We've got to get someone
to speak for us. Farmers have their lobbyists, factory
workers theirs through their Unions. Even the movie
stars organized against the salary ceiling limit. But,
who is there to speak for the low income, white-collar
worker -- he or she, salesgirl, clerk, or stenographer?
And I include those making up to $100 per month in this.
What has this Administration, which always has made &
talking point of being on the side of the "little fellow
really done for us?
***
"A Worker", Philadelphia, Pa. I am a worker at the
Philadelphia Mint and have taken it upon myself to ex-
press the idea of the men in general about their finan-
cial statement for salary earned in 1942, etc. We have
been trying since February 1 to get this report so we
can file our returns, but the office contends that
Washington is responsible for the delay. In the mean-
time, March 15 is drawing near and we still do not have
the statement. We don't know who is responsible for
this, but please do something for us if you possibly
can.
Walter V. Bennett, Overbrook, Pa. It is certainly going
against the grain for me to have to vote the Republican
ticket next year, but I am afraid it's going to be nec-
essary, despite my great admiration (and affection) for
President Roosevelt. *** I have come to believe that
the present Administration is concerned only with the
people making $2,500 or less, and is not at all concerned
Regraded Unclassified
144
- 18 -
about the middle-class. The idea of pay-as-you-go
taxation is 8. good one. We know that about 75% of
the forty billion dollar increase in the national income
for 1943 (estimated) over the national income for 1931
will go to labor. And every last one of us knows that
the average mechanic will change from plant to plant
merely 80 that no one can trace his income, and he will
therefore pay no taxes. Under the pay-as-you-go plan,
it would come out of his pay envelope, and he couldn't
dodge it. ** But, take the middle lass man like
myself, paying 8. tax of, we'll say, around $2,000 a
year. You know darn well he won't have that $2,000
laid away, and will count on paying the amount quarterly.
** # If you start to bite 20% at 25% out of that 1943
salary on the pay-as-you-go plan, the poor but honest
guy has no chance whatever of paying both taxes, and
will be forced to sell Bonds he owns, close out his
life insurance, and in many cases, give up his home.
When you do 8. thing like that to a person, Mr. Secretary,
war or no war, you produce a hater of the Administration.
My advice to you would be to watch your step very care-
fully because it's full of dynamite, and believe me,
I am just 8.8 anxious as you are to see that our soldiers
get good food and good equipment, because I have an only
son in the war and I want him to return safe and sound.
Robert I. Minson, San Diego, Calif. Please inform me
why you object to the Ruml Plan. None of the published
objections that I have yet seen appear valid. The fact
that some rich men might secure an advantage means
little or nothing. The rank and filers, like the writer,
are the birds whose tax money sustains the nation. It
seems that whenever there are two ways to do a thing,
the Government never fails -- it always does it the
hard way. Isn't it about time that you upset this cus-
tom and apply a little common sense and simple honesty
to the tax problem?
Mrs. leyne Macdonough, N.Y.C. Here WA are, almost
one hundred and thirty million people milling patiently
for Congress to decide on the tax alturtion. We have
Regraded Unclassified
145
- 19 -
been patient so far, but now the time is growing
shorter, and no longer will we tolerate this fumbling
and "dilly-dallying" that is going on in Washington.
This jealousy between the backers of the Ruml Plan and
the Treasury Department is positively disgusting to all
of us. We, the people, who must pay the taxes, want
the Ruml Plan passed, and it is up to you to remove
this situation and friction. We will gladly pay our
taxes, but we want 8. fair deal. It won't cost the
Treasury a single cent by making this easy for us, in-
stead of antagonizing the whole country.
Howard W. Niven, Rochester, N.Y. *** I have been on
the point of writing to you averal times to urge you
to approve a pay-as-you-go plan for taxes. This article
from "Newsweek", however, put it so clearly and concisely
that anything I might say would probably be superfluous.
May I suggest that you step out into the meadow and take
8. look at the forest 8.8 a. whole, and realize that the
mass of us would think considerably more of you if you
would concur with our wishes?
F. E. Rownd, Kansas City, Mo., sends Secretary Morgen-
thau copy of letter he has addressed to Senator Bennett
Champ Clark, which reads in part as follows: ***
Press reports indicate that you are familiar with the
public thought on this subject of income tax payments.
It is not the amount of tax, but the manner of paying,
that the public objects to, in the present law. On the
other hand, it appears that the Secretary of the Treas-
ury is not close enough to the public thought. Up to
now, he has added to the efforts of thousands of others
in the Administration, to bring about the defeat of the
New Deal in 1944.
Roman V. Kirchner, Lancaster, Pa.
...
Why will the
Collector of Revenue not accept currency issued by the
U. S. Government in payment for income taxes imposed
Regraded Unclassi
146
- 20 -
by the same Government? Any person unfortunate enough
not to have a checking account in a bank must pay his
taxes with a Money Order. Understand me, I am not
complaining about paying the tax, but the additional
fee necessary in obtaining the Money Order. I cannot
feel satisfied that this is a just condition, and I am
asking you for some explanation. ***
Anonymous -- N.Y.C. *** I am & Public Accountant
since over 15 years, and during this time tried to at-
tend to tax matters in a way that should do justice
both to the Tax Department and the taxpayers. ***
I am alarmed by the unfriendly attitude these Bureaus
(Internal Revenue) seem to take lately when they find
out that the questioning is coming from an Accountant,
and openly state that the information is only available
for taxpayers. I have no desire to criticize these
Bureaus but desirous to call your attention to the fact
that such attitude is against the interest of the
Treasury Department. *** It is a mistaken belief that
the tax experts are working against the Treasury Depart-
ment; on the contrary, as it is their own interest that
the report should be acceptable and not subject to
further questioning. ***
Regraded Unclassified
147
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
TO Secretary Morgenthau
February 26, 1943
FROM Frances McCathran
CONTROVERSIAL ISSUES BEFORE CONGRESS
1. Tax: Ruml Plan - As Republicar Congressmen appeared to be
lining up in support of the Ruml plan, Representative Reed,
a member of the Ways and Means Subcommittee drafting
pay-as-you-go legislation, declared it to be the only one
which would make taxpayers fully current in 1943, since all
other proposals would take several years. No loss of revenue
would result from the Ruml plan, he claimed, but instead
"revenue would continue to flow into the Treasury as usual,
the only difference being that 1943 taxes would be geared
to the higher level of 1943 income which will actually
result in a collection this year of $13,000,000.000 in per-
sonal income taxes a.s against $10,000,000,000 if 1943 taxes
are based on 1942 incomes". He also asserted servicemen
would be benefited because those who had high civilian
incomes in 1942 wouldn't have to pay taxes on them out of
army pay,
2. Salary Limitation - In a report written by Representative
Disney reviewing the salary limitation issue, the House
Ways and Means Committee urged the House to pass the Debt
Limit Bill containing the Disney salary rider, which would
nullify the President's order on salary ceilings and impose
the same limitations, retroactive to Pearl Harbor only, by
Congressional process. The bill also contained a provision
permitting banks and trust companies to serve as redemption
agents for War Savings Bonds, In his report, Disney stated
that while Congress disapproves the "amassing of large
fortunes as a result of the war" a "crop of war millionaires"
would be prevented by present taxes and regulations, such
as: (1) the high excess profit tax rate: (2) the power of
the Treasury and the war agencies to renegotiate war contracts
which "if they chose to be tyrannical" could bankrupt a. con-
tractor: and (3) the Treasury's authority to disallow
unreasonable salary increases for tax deduction ourposes. In
his report, Disney declared that Congress had never given
148
the President authority to limit salaries under the October
Anti-Inflation Bill and reiterated his already often-repeated
statement that his amendment was an attack on "government
by directive". There were indications, however, that the
question of the propriety of tacking a political rider on
to a war finance bill might be raised on the floor of the
House.
3. Farm Parity - With even staunch Administration supporters
like Senators Barkley, Wagner and Mead voting for it, the
Bankhead Bill to exclude subsidies or incentive payments in
the computation of the parity formula passed the Senate
yesterday with a vote of 78 to 2. Senator Barkley, however,
supported it "with some trepidation" and hoped it would not
lead to "runaway inflation". Passage of the measure led
to speculation on the fate of the Pace Bill in the House
to include farm labor costs in computing price ceilings.
Some quarters predicted that a compromise between the Ad-
ministration and the farm bloc was in the offing, with the
bloc dropping the Pace Bill which would raise prices about
10 or 15% and ceasing objections to subsidies in return
for Administration acceptance of the Bankhead Bill. Repre-
sentative Pace remained confident of his bill's acceptance,
however, and other sources chalked the Bankhead Bill up
as an outright victory for the farm bloc and a slap at
the Administration's Stabilization Program. Bankhead claimed
that Congress never intended to give the President authority
under the Stabilization Act to exclude government payments
in fixing price ceilings but Senator Barkley said Congress
should have made itself clear and that the President conse-
quently had a right to his own interpretation. The
Senate also almost considered along with the Bankhead Bill a
proposal submitted by Senator Danaher to repeal the
President's Salary Order but finally decided to let the
House act first on the Disney amendment.
Regraded Unclassified
149
m Thete discussed
onally with Sery 2/27/43
150
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE Feb. 26, 1943
TO
Secretary Morgenthau
FROM
Mr. White
Subject: Developments in North African Program
1. Currency for new invasion areas.
An agenda has been prepared for & conference Monday morning
with the British Government on the type of currency to be used in
an invasion of the European continent. The British have questioned
the desirability of the continued use of the yellow seal currency
in invasion areas in preference to military notes, and the various
refugee governments have made representations for the use of their
local currency as against any special currency issued by the Allied
governments.
2. Pay of Officers and Crews of French Men-of-War,
In accordance with the President's instruction to the Secre-
tary of State, steps have been taken to provide dollar funds for
the pay of officers and crews of the French men-of-war undergoing
repair in the United States.
A provisional arrangement to meet the immediate needs of the
French was agreed upon between representatives of State, Treasury,
War, and Navy and representatives of the French military and naval
missions in the United States whereby French authorities have drawn
a sight draft on the French Treasury in North Africa in the sum of
31,250,000 francs in favor of the Secretary of the Treasury. The
proceeds of this draft will provide adequate funds to meet the
immediate needs of the French for salary payments. This provisional
arrangement was made in preference to using blocked funds of the
former French Government in view of the broad questions of policy
involved in the use of these funds.
A cable has been dispatched to Mr. Murphy by State, Treasury,
War, and Navy advising him of this provisional arrangement and
instructing him to undertake discussions with General Giraud to
provide arrangements to cover similar expenses that may arise here-
after.
3. Sterling arrangements with North Africa proposed by British.
The British have indicated that they plan to make an arrange-
ment, in agreement with the French, to handle payments between the
Regraded Unclassified
151
Division of Monetary
- 2 -
Research
Sterling Area and French Africa through special exchange accounts
in the Bank of England and the North African Treasury. These
institutions are to be the sole holders of sterling and North
African france. The sterling accruing to the French can only be
used in the Sterling Area. The advisability of this regularized
procedure will be discussed orally with the British on Monday,
March 1, 1943.
4. Allocations of local costs in North Africa.
American representatives in Africa have indicated that the
questions involving the policy to be followed in handling Allied
payments to the French are pressing. Especially urgent are the
questions of Allied payments to the French for civilian defense
measures and for the Allied use of port facilities and the Algerian
railway.
The British Government has indicated that they are not liable
for any part. of the cost of the military or civil expenditures of
the French other than for services and supplies actually furnished
to them. For these services and supplies they will pay cash and in
turn will ask payment in cash for any services or supplies furnished
by them to the French. If the French are unable to meet the whole
cost of their budget, the deficit will have to be covered by arrange-
ments between the United States and the French administration, A
discussion of this matter is being undertaken with the British,
To provide for the immediate problem, e cable has been dis-
patched to General Eisenhower by State, War, Treasury, Lend-Lease,
and Board of Economic Warfare advising him that for the time being
he should continue to incur any expenditures for the account of the
United States Army which he is satisfied are needed by reason of
the military situation. If any situation arises where there is E
disagreement as to what constitutes the respective shares of Brit-
ish, French, and Americans, the British and the French should pay
what they believe to be their share and the United States Army
should pay the balance of the bill. It is emphasized that this
arrangement 1s provisional pending subsequent over-all financial
arrangements to be made with the British and the French.
5. Budgetary Assistance to the French.
The French have alra y stated that they expect considerable
financial aid from the Allied nations. The High Commissariat in
North Africa has indicated that a deficit of approximately 27,000
million francs is expected is the military and civil budget.
The budgetary problem 1a not one of a shortage of dollars, but
& shortage of franc receipts. In this connection the Franch North
Regraded Unclassified
152
Division of Monetary
- 3 -
Research
African authorities have available to them over $40,000,000 held
in the names of the central banks of Algeria and Morocco for the
account of the French Treasury in Africa. It 1a reported that an
additional $40,000,000 in United States yellow-seal currency is
held by the banks in North Africa.
6. Currency holdings of returning Army personnel.
Arrangements have been provided through the customs authoritie
to remove 8.8 far as 1a practicable any difficulties that may be ex-
perienced by the United States military personnel in bringing their
holdings of United States currency into this country when returning
from North Africa.
7. Local currency for French North and West Africa.
Arrangements for the manufacturing of local bank notes in the
United States for the Bank of Morocco and the Bank of West Africa
and for the supplying of the Bank of Algeria with materials for the
printing of its own notes are proceeding satisfactorily. As soon
as adequate supplies of local currency are available the special
United States yellow-seal currency will be withdrawn from circula-
tion.
8. Internal financial controls in North Africa.
American representatives in Algiers have cabled the Treasury
that the French have finally agreed in principle with a program for
economic warfare embodying broad and flexible powers granted to a
central admimistration for financial and commercial controls, uniform
administr: for all of French North Africa, and a selective method
for the sequestration of economic property. Additional information
as to the French position towards this matter has been requested.
9. General License for certain North African banks.
The Treasury has generally-licensed, with a procedure for prior
notification, the accounts of the Bank of Algeria, the Bank of
Morocco, and the Bank of West Africa. The blocked accounts of com-
mercial banks in French North and West Africa may be transferred to
the generally-licensed accounts of the three State banks upon request.
The American rep resentatives in Africa have indicated their approval
of this procedure. As soon as these arrangements are in effective
operation remittances from and to North Africa may be satisfactorily
handled. No public announcement will be made here.
Regraded Unclassified
153
Division of Monetary
- 4 -
Research
10. Inflationary problems in North Africa.
Inflation remains & problem of importance in French North and
West Africa. Discussions with French authorities indicates that
they have little awareness of the necessity for strong inflation
controls and that they are relying upon the United Nations to ship
consumer goods and products in quantities large enough to offset
the increased buying power of the population. Any Treasury action
that may be taken towards providing adequate controls is now being
discussed.
11. Arrangements for franc notes of French sailors.
Arrangements have been made to allow sailors from the French
warships visiting American waters to dispose of their African
currency for dollars at approximately the official rate of exchange.
154
NOT TO BE RE-TRANSMITTED
COPY NO.
13
BRITISH MOST SECRET
U.S. SECRET
OPTEL No. 65
Information received up to 7 A.M., 26th
February, 1943.
SECRET
1. NAVAL
OF
0,
One of H.M. Submarines is overdue from exercises off the West coast
of SCOTLAND. Another of H.M. Submarines in the GULF OF GENOA sant N tugs on the
12th, possibly torpedoed & large east bound tanker on the 15th and shelled a
schooner building yard at CERVO damaging 2 schooners on the 19th. Another of H.M.
Subsarines on the 18th off the north coast of SICILY shelled two schooners which
were left derelict.
2. MILITARY
TUNISIA. Eighth Army. Active patrolling continued by our right
armoured forces east of MARETH LINE. On 24th road from MEDENINE to within 1,0 miles
of MARETH LINE reported clear of enemy.
First Army- On the 24th, the enemy's withdrawal through lev MASSERINE
Pass continued with our forward units in contact throughout the day,
BURMA. ARAKAN. 22nd/23rd. In a small raid by our patrols on
MYEBON Southeast of AKYAR one river steamer and two launches were sunk and the jotty
destroyed before our forces withdrew.
3. AIR OPERATIONS
WESTERN FRONT. 24th/25th. WILHELMSHAVEN. Over 90% of aircraft
despatched of which 98 were R.C.A.F. attacked the objective dropping 182 tons of
bombs. Main force bombed on flares placed by Pathfinders and completed attack in
20 minutes. Glow presumably from fires seen reflected on clouds. No aircraft
missing. 25th/26th. 417 aircraft sent out - NUREMBURG 337 (9 missing, 1 crashed).
108 mining 54, RUHR 6, leaflets 20. At NUREMBURG there was B certain amount.
ground haze.
TUNISIA. 29rd. 53 U.S. heavy ght and modium attented
memy com intions and positions in the KAB RINE Many voldetes were des-
royed or damaged. At night Wellingtons and faxes of Western Desert Mr. Fol
dropped 51 tons of bombe on GABES town and Impres grow a Allied medi
light bombers dropped 38 tons on enemy positions in the MARETH area. the 28 es-
corted U.S. bombers attacked EL AGUINA airfield and roads and railways in the SBEITLA
and FERIANA areas.
SICILY. 25th. 31 escorted bombors attacked COMISO airfield
and a factory near PACKINO.
D LA. 25th, 18 y which ineffectively attacked the
DINJAN area ASSA were intero ted U.S. Kittyhawks. Enemy casualties 6, 12,
nil. Allied nil
Regraded Unclassified
154
NOT TO BE RE-TRANSMITTED
COPY NO.
13
BRITISH MOST SECRET
U.S. SECRET
OPTEL No. 65
Information received up to 7 A.M., 26th February,
1943. at
"
DUE
1. NAVAL
10
One of H.M. Submarines is overdue from exercises (the Weat coast
of SCOTLAND. Another of H.M. Submarines In the GULF OF GENOA Bank and 2 tugs on the
12th, possibly torpedoed B. large east bound tanker on the 15th and shelled et
schooner building yard at CERVO damaging 2 schooners on the 19th. Another of H.M.
Submarines on the 18th off the north coast of SICILY shelled two schooners which
were left derelict.
2. MILITARY
TUNISIA. Eighth Army. Active patrolling continued by our 11ght
ermoured forces east of MARETH LINE. Ort 24th road from MEDENINE to within 10 miles
of MARETH LINE reported clear of enemy.
First Army. On the 24th, the enemy's withdrawal through the KASSERINE
Pass continued with our forward units in contact throughout the day.
BURMA. ARAKAN. 22nd/23rd. In e small raid by our patrola on
MYEBON Southeast of AKYAB one river steamer and two Launches were sunk and the jetty
destroyed before our forces withdrew.
3. AIR OPERATIONS
WESTERN PRONT. 24th/25th. WILHELMSHAVEN. Over 90% of aircraft
despatched of which 98 were R.C.A.F. attacked the objective dropping 182 tone of
bombs. Main force bombed on Clares placed by Pathfinders and completed attack in
20 minutes. Glow presumably from fires seen reflected on clouds. No aircraft
missing. 25th/26th. 417 aircraft sent out - NUREMBURG 337 (9 missing, 1 crashed)
ica mining 54, RUHR 6, leaflets D. At NUREMBURG there W&B a certain amount of
wound have
UNISIA. 23rd. U.S. heavy, light and modium bombers attacked
nomy communications and positi in the KASSERI res. Many vehicles were des-
royed or damaged. At night Wall ngtons and Halifaxes of Westorn Desort Air Force
dropped 51 tone of bombs GABES town and landing ground and Allied medium and
Light bombers dropped 38 Lons on enemy tions in Sao MARETH area. 24th. 28 ea-
corted U.S. bombers attach EL AOUINE airfield and oads and railways in the SBEITLA
and FERIANA areas.
SICILY. 35th. 31 escorted fighter bombers attacked COMISO airfield
and 8 factory near PACHT O.
INDIA. 18 enemy bombors which ineffectively attacked the
DINJAN area ASSAM were ercepted by 32 U.S. KSheyhawks. Enemy casualties 6, 12,
nil. Allied nil.
Regraded Unclassified
Relations
belongs_to
belongs_to