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Volume 699, February 1 – February 2, 1944
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Volume 699, February 1 – February 2, 1944
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Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
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Diary
Book 699
February 1-2, 1944
Regraded Unclassified
- A -
Book Page
American Red Cross
HMJr's statement on opening of drive - 2/1/44
699
91
Argentina
See Latin America
- B - -
Berkshire, Stewart
See Liquor
- C -
Celler, Emanuel (Congressman, New York)
See War Refugee Board
Commodity Credit Corporation
Appraisal in connection with extension of funds
prepared for FDR - 2/2/44
349
- D - D -
Deferments, Military
Stewart, Rodney Ward: Deferred for two months - -
2/2/44
347
Doyle, Mrs. Henry Grattan
See Employee Relations, Treasury
- È -
Emigres from Central Europe, Self-Help of
See War Refugee Board
Employee Relations, Treasury
Mrs. Doyle's memorandum on Day Care Service for
Children of Working Mothers - 2/1/44
88,89
(See also Book 705, page 151 - 3/1/44)
European Relief
See War Refugee Board
- } -
Financing, Government
War Savings Bonds
4th War Loan Drive: Unsatisfactory progress of sales
discussed by Treasury group - 2/2/44
309
Florida
See Liquor
Foreign Funds Control
Argentina
Pellegrini, Meyer: Paul memorandum on connections
with American Embassy - 2/1/44
93
Regraded Unclassified
- F - (Continued)
Book Page
France
See War Refugee Board
- G -
Georgia
See Liquor
- I -
Intergovernmental Committee on Refugees
See War Refugee Board
- K -
Kentucky
See Liquor
- L -
Lehman, Herbert
See War Refugee Board
Lend-Lease
Reports as of
February 1, 1944
699
95
If
8, 1944: See Book 700, page 205
II
15, 1944: Book 702, page 13
n
22, If : Book 703, page 32
#
29, . : Book 704, page 184
United Kingdom
Aircraft despatched, weeks ending January 18 and 25 -
British Air Commission report - 2/1/44
97
Reduction of Dollar Balances and Elimination of
Controversial Expenditures: Conference to discuss
draft of statement for FDR to be signed by Hull,
HMJr, and Crowley: present: HMJr, Crowley, Cox,
Currie, Bell, and White - 2/2/44
294,299,300
a) Memorandum to FDR as sent - 2/4/44: Book 700,
page 122
FDR's cable to Churchill suggesting reduction to
$1 billion - - 2/25/44: Book 703, page 139
Balance reported as of December 31, 1943: Book 703,
page 143
Conference: present: HMJr, Bell, and White; Churchill's
cable to FDR as brought up at Cabinet discussed by
HMJr - 3/11/44: Book 709, page 1
a) HMJr does not want Stettinius to discuss in
London
b) HMJr thinks Churchill's point of view the
correct one
c) Crowley may be spreading stories to cause breach
between FDR and Churchill: Book 709, page 10
d) See next page
Regraded Unclassified
- L - - (Continued)
Book Page
Lend-Lease (Continued)
United Kingdom (Continued)
Conference (Continued)
d) Crowley told by HMJr of coming meeting to
discuss Churchill's message - 3/13/44:
See Book 709, page 108
e) Conference; present: Crowley, Bell, and White:
Book 709, page 109
f) Conference in Hull's office: present: Hull, HMJr,
Stettinius, Bell, Crowley, Cox, Currie, and
White - 3/13/44: Book 709, page 122
1) Hopkins-Churchill conversation - HMJr asks
White House for report of - 3/13/44:
Book 709, page 166
a) HMJr acknowledges receipt
(report not attached) - 3/15/44:
Book 710, page 93
Liquor
Berkshire reports on trip to Kentucky and Florida -
2/1/44
699
4
Georgia: Progress report - Hannegan memorandum -
1/15/44
12
Long, Breckenridge
See War Refugee Board
- M - -
McAneny, George
Arbitrary action by Klaus discussed by
HMJr and Treasury group . - 2/1/44
47,59
n and Graves - 2/1/44
56
- P -
Pehle, John V.
See War Refugee Board
Pellegrini, Meyer
See Foreign Funds Control: Argentina
Portugal
See War Refugee Board: Intergovernmental Committee
on Refugees
- R -
Rab, Island of
See War Refugee Board
Raynor, Hayden
See War Refugee Board
Refugees
See War Refugee Board
Roosevelt, Franklin D.
Protection by Secret Service: Date of undertaking and
authority for discussed in Paul memorandum - 2/1/44
87
Roumania
See War Refugee Board
Regraded Unclassified
- 8 -
Book Page
Secret Service
Protection of President: Date of undertaking and
authority for discussed in Paul memorandum - 2/1/44. 699
87
Self-Help of Emigres from Central Europe, Incorporated
See War Refugee Board
Stabilization Fund
Gold transactions as of December 31, 1943 - 2/2/44
369
Stewart, Rodney Ward
See Deferments, Military
- U -
United Jewish Appeal
See War Refugee Board
United Kingdom
See Lend-Lease
United Nations Relief and Rehabilitation Administration
See War Refugee Board
- W -
War Refugee Board
Luncheon conference with Stimson; present: HMJr,
Stimson, McCloy. Bundy, and Pehle - 2/1/44
22
a) Resume of accomplishments to date given Stimson
(See page 24)
b) Rab, Island of: Making Funds Available to
Refugees - memorandum - 2/1/44
31
1) Stimson reply - 2/8/44: See Book 700,
page 213
2) Lire is necessary currency and Paymaster
in Southern Italy can supply it - 2/23/44:
Book 703, page 99
c) Stettinius memorandum discussed on assistance
for all refugees now located in France and
Roumania
33
d) Cable of instructions to American Embassy, London,
to be used in connection with discussion with
British Foreign Office
36
e) Pehle: Stimson and Stettinius will support if
Graham is not available - 2/2/44
105
Long (Breckenridge) testimony before House Committee
on Foreign Affairs: Congressman's Celler's comments
thereon - 2/1/44
41
United Jewish Appeal
HMJr and Pehle discuss - 2/2/44
106
Dr. Jonah Wise-HMJr conversation - 2/2/44
110
Lehman-Pehle talk reported to HMJr by Pehle - 2/2/44
113
Budget: $1 million advocated by FDR from Emergency
Fund - (January 29, 1944)
119
Progress report - 2/2/44
124
a) Clippings
b) Accomplishments
c) State Department agenda used at first meeting
d) Executive Order and press release
e) See next page
Regraded Unclassified
- W - (Continued)
Book Page
War Refugee Board (Continued)
Progress report (Continued)
e) Memorandum regarding John W. Pehle
f) Big names"
g) Allocation of President's funds
Intergovernmental Committee on Refugees: State Department
asks Budget for funds without consulting Treasury -
Pehle memorandum - 2/2/44
699
260
a) Discussion by HMJr, Pehle, and Luxford -
2/3/44: See Book 700, page 4
b) State Department asks Board to appropriate,
from its own funds, funds for support of
Intergovernmental Committee - 2/7/44: Book 700,
page 189
1) Pehle reply: Book 700, page 190
c) American Embassy, London, advises against branch
office in Portugal - 2/22/44: Book 703, pages 68,160
United Nations Relief and Rehabilitation Administration-
War Refugee Board division of responsibility: State
Department memorandum - 2/2/44
271
European Relief: Consistency of instructions discussed
in State Department file and transmitted to Pehle by
Hayden Raynor, State Department - 2/2/44
276
Self-Help of Emigres from Central Europe, Inc. :
Correspondence with - 2/2/44
288
War Savings Bonds
See Financing, Government
Wise, Dr. Jonah
See War Refugee Board
1
February 1, 1944
10:32 a.m.
Operator:
Here you are.
HMJr:
Hello.
Operator:
Here you are, sir.
HMJr:
Hello.
Justice
Byrnes:
Henry.
HMJr:
Good morning.
B:
I told you yesterday that I'd talk to
LaFollette and ring you back and I didn't
get LaFollette and I simply want to explain
why I did not. What do you think of the
agreement as
HMJr:
Well
B:
to taxes passed?
HMJr:
my Cnty contact since last night has been
with Patterson.
B:
Yes.
HMJr:
And Patterson called me up at the house last
night and he's delighted.
B:
I thought from -- Bob was just unduly alarmed
and they did a fairly good job. How they --
you can't have everything you want in life.
You've got nearly everything.
HMJr:
Well, Bob Patterson says that -- I haven't talked
with Paul -- he says, "I am very much pleased."
And he says, "You," to me, he says, "You, Henry,
have got every reason to be pleased."
B:
Well, I....
HMJr:
So, I said, "Well, that's good enough for me."
B:
The -- the Court Review
HMJr:
Pardon?
Regraded Unclassified
2
- 2 -
B:
The Court Review feature
HMJr:
Yeah.
B:
and all the other features looked to me
like a durn sight better than we hoped to get
out of that conference.
HMJr:
Well, Patterson, who has been the
B:
Yeah, he's been the active fellow.
HMJr:
Active -- and if he's satisfied, why, I've got
every reason to be.
B:
All right, Henry.
HMJr:
Now, on the other part, Jimmy, I'm meeting with
my men this afternoon.
B:
Yes.
HMJr:
As -- to let them tell me on the tax features
and after I've had that meeting, I'll most likely
give you a ring.
B:
Yeah, I -- I mean, I was thinking of that last
night, that my judgment would be that I'd surely
be slow about turning down two and a half billion,
as much money as you need.
HMJr:
Well, that's what I
B:
(Laughs)
HMJr:
you remember what I told you?
B:
Yes.
HMJr:
I think that the President could have gone to the
public
B:
Yes.
HMJr:
and got public backing on the renegotiation.
B:
Yes.
HMJr:
But when the President turns down two billion,
three
Regraded Unclassified
3
- 3 -
B:
Yes.
HMJr:
....I think that we, here, have got to think
very carefully.
B:
Oh, yes.
HMJr:
Of course, Paul feels quite aggressive about it,
but
B:
Well, these boys who are on the firing line do
HMJr:
Yeah.
B:
always and you can't blame them, but, God,
it don't -- if you ask -- if you ask Mother for
a dollar and she gives you
HMJr:
A dime.
B:
a dime, you're not going to turn the dime
down. You go back for ninety cents this afternoon.
HMJr:
Well, sometime in the next twenty-four hours -- I
may not be able to come to a decision this afternoon.
B:
Yes.
HMJr:
But sometime in the next twenty-four hours, I'm
certainly going to call you up.
B:
All right.
HMJr:
But my inclination is that I'm going to hesitate.
They've got to put up a stiff argument.
B:
The burden of proof is on the boys.
HMJr:
That's right.
B:
All right. Bye.
HMJr:
Thank you.
Regraded Unclassified
4
February 1, 1944
10:45 a.m.
LIQUOR CONTROL
Present: Mr. Gaston
Mr. Smith
Mr. Sullivan
Mr. Irey
Mr. Graves
Mr. Berkshire
Mr. Avis
H.M.JR: Who is the spokesman here?
MR. GRAVES: Mr. Berkshire. He is back from Florida.
H.M.JR: I see. "Treasury to Test Cuban, Mexican Gin."
What is this story here (Indicating clipping from New York
Times of February 1, 1944)?
MR. BERKSHIRE: That is the result of a letter. We
discussed it here some time ago with Mr. Gaston, a letter
to Customs to take samples of this imported Cuban and
Mexican gin.
MR. GASTON: Instructions went out through Customs
that no deliveries were to be made. It is to be held in
Custom's custody, all that island gin, until samples have
been sent to Washington and the matter has been cleared,
because nine-tenths of the stuff is not gin.
H.M.JR: What is it?
MR. GASTON: It is alcohol with other flavors. They
don't have the juniper berries, and it is often polluted.
MR. BERKSHIRE: It is very poor stuff, the stuff that
we have been talking about here, Mr. Secretary.
H.M.JR: Go ahead with your report, please.
Regraded Unclassified
5
- 2 -
MR. BERKSHIRE: Mr. Secretary, I proceeded from
Kentucky to Miami, Florida, arriving there on January
17, according to instructions from Mr. Hannegan, instruc-
tions he had passed along from you, stating that you wanted
us to proceed to Miami, and from Miami to Key West, and
from there to West Palm Beach to clean up the black
market situation in that area.
Before arriving in Miami, by telephone I had arranged
for around twenty-five, I think-that is, twenty-five or
twenty-six is accurate--investigators and inspectors who
had preceded me there and had made their arrangements
over the week end for living. We met in the Judge's
courtroom in Miami on the morning of the 17th, organized
a force and sent them out in pairs to work Miami and the
Miami area, as we had determined from investigation of
this 52-B record which discloses the sales by wholesalers,
instances of disproportionate sales. That information was
passed out to these investigators, and they carried that
to the places in order that they might have that information
and confront the retailer with the fact that he was
getting more than his share of the liquor and also the
fact that he was getting above ceiling prices.
It is apparent that practically all of the black
market originates with the wholesaler. There are excep-
tions to that, but that is the rule. The wholesaler
charges a bonus price, or an overcharge cash price on
the side before he bills it to the retailer within the
ceiling price. The retailer must then necessarily sell
it in the black market in order to make any profit at
all.
Now, there is no record of this overpayment--over-
charge; it is usually in cash. The examination of the
invoices of wholesalers and retailers has disclosed the
sale price within the legitimate ceiling, so you have to
break down the retailer or somebody in order to get your
evidence. The logical place, of course, is the retailer.
In most instances, he didn't willingly pay this overcharge;
he paid it because he had to have the whisky in order to
stay in business, and couldn't get it otherwise. He paid
the price and passed it along to the consumer.
Regraded Unclassified
6
- 3 -
In those cases where the retailer was willing to
cooperate after being confronted with this, we endeavored
to make a witness out of the retailer. In one case I
recall, when our men went in there he recognized them.
They confronted him with the fact that he had just sold
8. pint of whisky to a customer for five dollars. He
said, "Yes, that is my price, and that is what I will
charge you if you want a pint of whisky, and we aren't
telling you anything." Suffice it to say, that charges
were filed against the concern immediately.
We made four good cases against wholesalers in
Miami within the first week.
H.M. JR: Miami wholesalers?
MR. BERKSHIRE: Out of nine wholesalers in the Miami
area we made good cases against four. There are other
cases against concerns, some of whom did not even have
the FAA permit as required by law.
On Thursday--I believe it was the 22nd--charges
were filed against nine operators in Miami. One or two
good cases have been developed since then on investiga-
tions conducted in West Palm Beach and also in Tampa.
Retailers in those areas were buying from the wholesaler
in Miami.
To make a long story short, Mr. Secretary, of the
wholesalers operating in the State of Florida, cases were
made against just about half of them. The retailers,
when they bought in the black market, would involve that
half, and you never heard of the others, which indicates
that there were just about fifty percent of the whole-
salers operating in the State of Florida who were charging
these over-ceiling prices to the retailer.
H.M.JR: Now, let me just stop you 8 minute. All
right, you find it is the wholesaler. Now, when the
manufacturer sells to the wholesaler, is the manufacturer
staying within legitimate prices?
Regraded Unclassified
7
- 4 -
MR. BERKSHIRE: That is ordinarily the rule.
Now, what happened in Florida, and what has happened
elsewhere, is that these wholesalers, not being able to
get liquor in the quantity that they want from the dis-
tiller, in the case of the Florida area, three wholesalers
from West Palm Beach, two from Jacksonville area, and
one man from New York--we don't know who he is yet--the
six of them bought Wathen Brothers Distillers Company
at Louisville, Kentucky, and those six operated two large
wholesale concerns, one in West Palm Beach, and one
in Jacksonville. We were working this out of the Kentucky
office, had special investigators from the Kentucky office
over there working in conjunction with the Georgia inves-
tigators. They definitely made black market cases against
both of the wholesale concerns, the one in Jacksonville,
and the one in West Palm Beach, who are in turn individual
owners of the Wathen Brothers Distillers Company in
Louisville. Invariably, the liquor that was sold by
these wholesalers to these retailers was liquor which
had been bottled in the Wathen Brothers distilling plant
in Louisville, Kentucky, and bore the brand name of that
distillery, "Old Regards, If "Old Plainsmen," and a couple
of others. Whenever we found that liquor on the shelves
of a retailer, we knew we had a case. There wasn't any
question about it.
H.M.JR: Now, what is the penalty? What will happen
to these fellows if you prove your case?
MR. BERKSHIRE: The case reports are turned over
to the District Attorney. I personally conferred with
Assistant District Attorneys, the Assistants who were
in charge of liquor violations in these areas. They
were anxious to proceed with the cases. They will be
prosecuted in the Federal Court. We filed complaints
against nine in Miami, and seven in Jacksonville, and
complaints were being filed--
H.M. JR: You haven't answered my question. What
can the penalty be, from so many months to so many years?
Regraded Unclassified
8
- 5 -
MR. BERKSHIRE: These violations in themselves, the
substantive violation is a misdemeanor, Mr. Secretary. But
we are proposing, in the case of these wholesalers who
purchased this distillery, of charging them with conspiracy
to violate the Emergency Price Control Act, which would be
a felony. We believe that that case will lie in the State
of Kentucky, where there are 8 little better prosecuting
conditions for us to operate under. There we think we
can have a case that will probably send somebody to the
penitentiary. That is what we are hoping to do.
H.M.JR: But had this developed and started that these
six wholesalers that bought that distillery in Kentucky--
did they have that before you went to Miami, or subsequently?
MR. BERKSHIRE: We knew the distillery had been purchased
by these men in Miami and Jacksonville, but we did not know
until I went down with these investigators that these whole-
salers were in the black market to the extent that we found
them to be.
H.M.JR: That looks to me as though that was developing,
that is, something worth while developing from the distillers
who are wholesalers.
MR. GASTON: Can't we revoke permits?
MR. BERKSHIRE: Citations have been filed against every
one of these wholesalers with the exception of Pan American
in Miami, and that case was made in just the last few days
of our investigations down there, McKesson and Robbins of
New York.
H.M.JR: What do you mean, Pan American?
MR. BERKSHIRE: Pan American Distributors is the
biggest distributing concern in Miami.
H.M.JR: Not the airline?
MR. BERKSHIRE: No, sir.
McKesson and Robbins have their place in New York.
We are proceeding against them there; and in all cases, with
the exception of those two--there may be one in Key West, Mr.
Secretary--they have already been cited and they are holding
hearings in the Atlanta District.
9
- 6 -
H.M.JR: How long did it take before you revoked the
license?
MR. BERKSHIRE: They are all invariably cited to
appear fifteen days from citation.
H.M.JR: We will have to stop in two minutes. Is
there any law which forbids us from telling the story of
this group and how they operate?
MR. SULLIVAN: No. It is all a matter of public record
once the citations are filed, isn't it?
MR. BERKSHIRE: Yes. There has been very good publi-
city in the papers down there.
MR. GASTON: I think we can tell the story there, just
about as Stewart has told it, and get a good story in the
local papers and on the wires.
MR. BERKSHIRE: The only question I have in my mind at
all would be the distillery connection back there because
they are working on a conspiracy case, although I doubt
whether--
H.M.JR: That is your story.
MR. GASTON: That isn't all the story.
H.M.JR: But it is the whole thing, how these fellows
bought a distillery.
MR. GASTON: You don't need to name the distillery. I
think we can tell the story.
MR. SULLIVAN: Are we making arrangements to check
the ownership of all other distilleries?
MR. BERKSHIRE: Those records are all available to us.
H.M.JR: Where are you going next? Excuse me, John.
MR. BERKSHIRE: Well, Mr. Secretary, we are working
all over the country. We are making good cases all
over the country. While I was down there, Mr. Avis here
carried on elsewhere. We are having splendid success
Deeraded
10
- 7 -
in these black market cases. I can say that certainly
in Florida we are, and we know in other places, also.
H.M.JR: Let's start at San Diego now with a group,
thirty or forty men, and work right up through that whole
airplane producing district, right up to Seattle, see?
I would like to start at San Diego; then go to Los
Angeles, San Francisco, Seattle--
MR. BERKSHIRE: We can do that, Mr. Secretary. We
probably wouldn't find as fertile a field to work in
there as we have in Florida.
H.M.JR: You don't know. But, John, it comes under
you, doesn't it?
MR. SULLIVAN: Yes.
H.M.JR: I want them to start with a group of thirty
or forty--whatever is necessary, see--start at San Diego
and work north. It will be an entirely different picture,
I think. You don't know how they are working the racket
there. They can't work it with the Cuban rum or alcohol.
Maybe it is something quite different. They may have
something from Chile.
MR. GRAVES: I think they do have Cuban rum and all
that. Didn't Bill Bryan tell us that yesterday,
Herbert?
MR. GASTON: Oh, yes, they have large shipments of
Cuban rum and gin.
H.M.JR: This is a good start, but it is just a
start. I will have to stop. You see that there is a
story.
MR. SMITH: Well, shall we just make this a part of
John's appearance on the Hill?
H.M.JR: Yes, that is right.
Regraded Unclassified
11
- - 8 -
MR. SULLIVAN: O.K., we will go in and go through
the exhibit.
H.M.JR: I think if you would take the exhibit up
on the Hill and make this part of your story--
MR. SMITH: Then we would have the theory and the
practical side.
12
JAN 15 1944
Memorandum for the Secretary:
In accordance with your request, the following
additional facts are submitted relative to the black
market situation in Georgia:
Investigations of wholesale liquor dealers
engaged in black market transactions in the State
of Georgia are being vigorously pursued, and evidence
upon which suspension proceedings will be instituted,
as well as for criminal prosecution, is being
assembled as rapidly as possible. Approximately
fifty Investigators have now been assigned for this
purpose in that area. On January 1, 1944, two
attorneys from the Bureau were detailed to the
Atlanta district to assist in assembling the avail-
able evidence and preparing citations with the view
of suspension of permits involved. This work is
being expedited.
Permit suspension proceedings have already been
instituted against the following six distributors
in the State of Georgia:
R. H. Hogg and Company,
Atlanta, Georgia.
United Distributing Company,
Augusta, Georgia.
Dixie Bottle and Beverage Company,
Atlanta, Georgia.
Regraded Unclassified
13
Memorandum for the Secretary.
Page two.
Dixie Distributors,
Macon, Georgia.
Richmond Wholesale Liquors,
1130 Fenwick Street,
Augusta, Georgia.
Liberty Distributing Company,
513 West Hull Street,
Savannah, Georgia.
Black market investigations, as previously stated,
are proceeding simultaneously in all sections of the
country on an extensive scale and are being pressed
with the utmost vigor. The additional regulatory
measures now in effect, as well as the Bureau-
sponsored self-policing program of the industry now
in operation, should have a substantial deterrent
effect on the black market traffic. These measures,
together with the suspension of permits and the
institution of prompt and vigorous criminal prose-
oution, will, it is believed, go a long way in
bringing the black market situation under control.
Every effort is being directed to that end.
As was indicated in my memorandum of January 12,
1944, nine wholesalers have been under investigation
in the State of Florida, which cases have progressed
to the point where permit suspension proceedings can
be instituted in the very near future. Black market
investigations in the State of Florida are being
intensified, with particular attention being given
to conditions existing in Miami, Palm Beach, and
Key West, in accordance with your request.
(Signed) Robert E. Wannegan
Commissioner.
Regraded Unclassified
14
February 1, 1944
11:00 a.m.
ABSORPTION OF EXCHANGE CHARGES
Present: Mr. Bell
Mr. Gaston
Mr. Delano
MR. BELL: This is on the bill introduced by
Brown regarding regulation "Q" of the Federal Reserve
Board, absorption of exchange charges by member banks.
We sent up a report on Saturday, I guess it got
there Monday, because we thought Delano was going to be
called. We thought Mr. Delano was going to be called
Monday for a hearing, and then they thought that that
was going to close the hearing, 80 they wanted the report
in.
The report went out and got to the Chairman yester-
day, and last night at home Mr. Doughton and Mr. Brown
both called me - both very angry - saying that this is
one of the worst things the Treasury has done - threw
& lot of banks out of business.
Mr. Doughton said it seemed to him that the Adminis-
tration needed all the friends it could get.
H.M.JR: May I interrupt you, just for the record?
You came to me and asked if you could handle it. Is
that right?
Yes, you did; you wanted to handle it. You stood
right there and said, "Would you mind letting me handle
it?" A day or so after Delano - you said you wanted to
handle it your own way.
I said, "All right."
Regraded Unclassified
15
- 2 -
MR. BELL: No, you have it wrong. I called you at
the farm and you found a memorandum in your file in
which I told you - I think last Thursday or Friday a
week ago, that it was right on our doorstep. They were
calling for a report and they told Mr. Delano that he
would have to go before the Committee. So I said we
were going to have to have a decision as to what our
position is going to be.
I told you what this was, and that I thought we
would have to say that what we were doing was in the
interest of sound banking, and that that ought to be
the tenor of our report.
H.M.JR: What did you say to me previous to that
when you stood here?
I said I wanted, after I heard the thing my inciina-
tion was - I am trying to clarify my own mind - my incli-
nation was to say that the law is under statute, we have
to go through with it.
MR. DELANO: You said that to me. I remember that.
MR. BELL: At our first conference. Then Doughton
called you.
H.M.JR: And then you came in subsequently, all
alone, and said, "Do you mind just letting me handle
this thing my own way," or words to that effect.
MR. BELL: I don't think 80.
H.M.JR: Well, anyway, don't you remember coming in
here all by yourself?
MR. BELL: No, I don't. I don't have the slightest
recollection.
H.M.JR: I do. I didn't make any notes.
Regraded Unclassified
16
- 3 -
MR. BELL: And I asked you to let me handle it?
H.M.JR: Yes. Well, anyway--
MR. BELL: I may have said to let the thing ride
for awhile, because we weren't in the picture up to
that time. That is, we had been asked for a report, but
not to appear before the Committee. I am sure I said at
the time that Delano was here, that I think we ought to
let it drag because we ought to stay out of it if we
are not asked to appear.
Then it looked as though we were going to be aske
to appear.
MR. DELANO: Just supplementing that, Spence called
me up on Saturday, I think it was, or maybe Friday, of
the previous week and said that they were going to resume
the hearings on Monday and would I stand by him and be
ready to appear.
That is what I have been doing ever since, you see.
MR. BELL: Well, it was intimated last night by
Spence to Brown, and it gets to Doughton, that this
report hadn't yet got into the hands of the Committee.
It was in the hands of Mr. Spence and he thought the
Treasury ought to withdraw it.
I said, "Well, I don't know whether that could be
done or not." I said I would like to talk to you about
it.
I question whether that could be done, because I
am sure Wilcox knows about it. He is standing around
the Committee all the time. That would probably be out
in the paper that we were forced to withdraw our report.
I think probably the best thing to do is to stand
by it and go up and testify. They said that Brown
threatened to subpoena a lot of people in the Treasury - -
me, and Delano - didn't mention you, but sort of intimated
they would go to the top and thrash this thing out before
the Committee. I think that is about the only thing we
can do.
Regraded Unclassified
17
- 4 -
MR. GASTON: Who is Brown?
MR. DELANO: Representative Brown of Georgia. He
is the active protagonist of this whole thing.
H.M.JR: Supposing he is. I don't see how anybody -
I mean, I don't know what has happened more recently,
but after all, here is & law of the land. The Federal
Reserve - I may not have my history right, anyway -
are now saying they want the thing enforced. You are
the enforcement agency.
MR DELANO: That is right.
H.M.JR: If Mr. Brown, or Mr. Smith, or Mr. Jones doesn't
like it, let them have it struck off the books.
MR. BELL: I think that is right.
H.M.JR: Every time, in ten years, I have watched,
when a fellow tries to do the popular thing he gets
stuck. We are an enforcement agency; that is & law.
I am not saying whether it is a good or bad law. "If
you don't like it, Mr. Brown, have it struck off the
books."
If they say, "Well, why didn't you enforce it before?"--
MR. DELANO: We have an answer.
MR. BELL: I think we have a pretty good record on
it, because joint regulation wasn't issued until '37.
We sent our first case to the Board in '38, and didn't
get a ruling until September, '43. In the meantime
many other cases had piled up. In the meantime many of
the banks, on their own, had thought the regulation was
right and had eliminated the charges.
H.M.JR: Well, I wouldn't worry about it. The fact
that Walter George is sore at us - I think he has been
sore at us now for months--
18
- 5 -
MR. BELL: Yes, this just comes on top of all that.
That is the unfortunate part about it. They said the
Treasury is not gaining any friends at a time when they
need them, making the people sore that give you their
money. They went into a long rigmarole.
MR. DELANO: That is just the vociferous minority
talking. It is Brown; and of course, Spence is wobbling
all over the place. He really is & pretty inarticulate
old man. Do you know Spence, who is Chairman of the
Committee now - succeeded Steagall?
MR. GASTON: No.
MR. DELANO: He is sick and non compos mentis part
of the time.
MR. GASTON: Regulation "Q" is a regulation of the
Federal Reserve Board?
MR. DELANO: Yes, against absorption of exchange
by member banks.
MR. BELL: This is one short paragraph that went
up, if you want to read it. (Refers to letter to Mr. Spence,
January 29,1944, signed by Mr. Bell as Acting Secretary)
H.M.JR: Did I sign it?
MR. BELL: No, I signed it. It came through for
your signature and came back late Saturday evening and
I signed it as Acting.
H.M.JR: All right. I am not going to get in this.
There are too many other things.
MR. BELL: I thought that is the way you would view
it, but I wanted you to know what is happening and we
may be called up.
H.M.JR: O.K. Thank you, that is all.
Regraded Unclassified
19
February 1, 1944
12:13 p.m.
HMJr:
Yes.
Ted
Gamble:
One: Today is the halfway mark of our Drive.
We shall report tonight our first Corporate
sales.
HMJr:
Yes.
G:
I thought it would be appropriate to get out a
very good statement for you
HMJr:
Yes.
G:
commenting on what individuals have done
up to now.
HMJr:
Yes.
G:
The fact that we have fifteen more days to go
on individuals.
HMJr:
Yes.
G:
And patting the people on the back and compli-
menting favorably the results up to now.
HMJr:
Good.
G:
Because they are going to be good. But I
HMJr:
Well, will you work it out with Fred Smith?
G:
Yes, sir. But I wanted your "green light".
HMJr:
You've got it.
G:
Fine. The second thing: Burgess has talked to
me from time to time about the possibilities of
an informal visit from you during this Drive and
I know of our talk the other afternoon and I have
hesitated to bring it to your attention.
HMJr:
No, I don't think I'm going to be able to do it,
Ted. I'll know now, in a day or two, what I'm
going to do. See?
G:
Fine.
Regraded Unclassified
20
- 2 -
HMJr:
But I doubt very much that I'm going. to do any
more than be able to do the round-up for you.
G:
Right. Well, I -- I've given him no encouragement
but
HMJr:
Well, I....
G:
just wanted to advise you in case he did call
you. At least we would have chatted about it.
HMJr:
Well, I appreciate that but I -- I -- I certainly
can't do the -- a day in New York. The boys would
want me -- talking about a radio program on the
15th of February.
G:
Yes.
HMJr:
I might be able to do that but that -- that's only --
well, one chance in four.
G:
Fine.
HMJr:
But I can't go through again getting my script
at -- just before I go on.
G:
Well, I agree with you, sir.
HMJr:
And, although the one that we did ourselves was
all right.
G:
Turned out fine, but you can't
HMJr:
The one with the Gulf -- I mean to get the stuff
that -- well, some of the stuff at seven o'clock.
G:
Yes.
HMJr:
But the one that I did -- I mean, the Treasury
handled was beautifully handled.
G:
Yes.
HMJr:
But anyway, you go ahead and you and Fred fix me
up me up a statement.
G:
Fine. We'll do that.
HMJr:
I'll be around here until around four and if it's
available, I'd like to see it.
Regraded Unclassified
21
- 3 -
G:
We'll see that you do see it.
HMJr:
And on New York -- spending a day in New York,
you'll just have to stall on that.
G:
Yes, well, I'm doing that but I wanted to bring
you up to date on it.
HMJr:
Thank you so much.
G:
All right, sir.
HMJr:
Good bye.
Regraded Unclassified
22
February 1, 1944.
MEMORANDUM FOR THE FILES:
Secretary of War Stimson had a luncheon in his office today
attended by the following: Secretary Morgenthau, Secretary Stimson,
Assistant Secretary of War McCloy, Mr. Bundy of the War Department
and Mr. Pehle of the Treasury.
During the luncheon Secretary Morgenthau explained that he
had asked that this meeting be held in order to bring Secretary
Stimson and his assistants up to date on what the Treasury has been
doing on war refugee matters. He asked Pehle to summarize for
Secretary Stimson the items in the attached memorandum dealing with
accomplishments to date. Most of the items included in this list
were subject to discussion by those present. Mr. Bundy asked for
an explanation of the British attitude as reflected in its recent
cables and particularly whether the British were "dragging their
neels" because of the impact of the evacuation question on the
Palestine problem. It was explained that there seemed to be every
indication that the Palestine problem was at least one of the basic
reasons why the British had been reluctant to take effective action
to evacuate Jews from occupied Europe. Mr. Pehle is sending to
Mr. Bundy some of the background cables on the British attitude
for his information.
During the meeting, as an example of the attitude of some of
the private organizations and their willingness to cooperate with
the War Refugee Board, Secretary Morgenthau read the letter of
January 24 from Charles R. Joy, Acting Executive Director of the
Unitarian Service Committee. Mr. Pehle also summarized for Secretary
Stimson the various committees and intergovernmental organizations
set up to deal with this problem and the persons appointed by the
President to work on such problems, including James G. McDonald,
Myron C. Taylor, George Rublee, etc. The attached chronological
memorandum gives some of the details with respect to the committees
set up by this Government.
Secretary Morgenthau mentioned the $100,000 contribution by the
Hebrew Sheltering and Immigrant Aid Society. Mr. Stimson agreed that
these funds should not be used for administrative expenses but should
be used for relief or evacuation operations.
Following this discussion, Secretary Morgenthau asked Pehle to
step out while he discussed the problem of getting an executive
director. Secretary Morgenthau told Mr. Stimson that if Frank Graham
was not available he would like to have Pehle take over the job.
Stimson said that it would be agreeable to him if Frank Graham was
not available to have Pehle take over the job on a two or three
Regraded Unclassified
23
- 2 -
month's trial basis and Secretary Morgenthau might advise the
President accordingly,
13
24
January 31, 1944
1
Accomplishments to date
1. We have worked out with the World Jewish Congress 8. program
to e vacuate refugees from France into Spain, Switzerland and
North Africa and from Rumania. Appropriate licenses have
been granted authorizing the necessary operations.
2. We have worked out with the JDC a program to evacuate 5,000
to 6,000 abandoned children from France and to sustain their
lives, pending evacuation. Licenses have been granted per-
mitting these operations up to 8. total cost of $600,000 for
the next six months. An initial remittance of $200,000 has
been sent to the JDC representative in St. Gall, Switzerland,
and operations are now under way.
While some of these children may be evacuated to Spain, the
majority will probably have to be evacuated to Switzerland.
Before Switzerland will agree to admit the children, it re-
quires receipt of assurances from some other government that
the children will be reevacuated after the war. The Treasury
is working on 8. method whereby the necessary assurances can
be given by this Government.
3. We have worked out a program to evacuate Jews from Poland to
Hungary. The Union of Orthodox Rabbis of the United States
and Canada has been authorized to communicate with and to
send funds to persons in Hungary who are in a position to
assist refugees across the Hungarian borders into Hungary
where a. Jewish community of over 1,000,000 people is ready
to help and absorb the refugees into the Hungarian economy.
$100,000 has been sent to Switzerland to cover these opera-
tions. With State's approval, direct transfers of free ex-
change into enemy or enemy-occupied territory have been
authorized for this program, if it is impracticable to obtain
the necessary local currency in Switzerland or in Hungary
against payment after the war from & blocked account. Thus
we have obtained State's approval of a practical and effective
method to finance underground operations.
4. We have sent a message to our representative in the Vatican
giving the necessary assurances that funds will be forthcoming
for the immediate relief of destitute Jews in Rome. This will
enable relief activities on behalf of these Jews to begin at
once.
Regraded Unclassified
25
- 2 -
5. We worked out the financial details of 8. program handled by
the JDC for the purpose of evacuating refugees from Spain to
Palestine. 750 of these refugees have already left Lisbon on
the "Nyassa."
6. We worked out with the JDC & program to bring relief to refugees
in Transnistria. Funds have been sent by the JDC to the Inter-
national Red Cross delegate in Ankara for the purchase of 250
tons of foodstuffs in Turkey, to be distributed among the in-
ternees by the International Red Cross. We are presently
working on an expansion of this program so as to provide food
distributions to internees in Thereisenstadt, Yugoslavia and
Greece.
7. We have sent an urgent message to the International Red Cross,
Geneva, stating that the War Refugee Board is prepared to see
that funds are made available at once to the International
Red Cross to provide food and medicines to persecuted groups
in German-occupied areas who are denied the facilities avail-
able to the rest of the population.
8. We are working with the World Jewish Congress on a program
to evacuate Jews from Transnistria to Rumania in order to move
them from the path of the retreating German army. It is be-
lieved that thousands of Jews can be saved from death in Trans-
nistria. In fact, we have just received a report that 6,400
internees, including 400 children, have already been evacuated
from Transnistria to Bucharest and that 500 more are expected
to be moved in the next few days. In addition, 200 Polish
refugees have been moved from Bessarabia to Bucharest. These
operations appear to have been handled with the cooperation of
the Rumanian Government.
9. $100,000 has been received by the Treasury, as private contri-
butions for the work of the War Refugee Board.
O. At our suggestion, the Department of State has sent very
strong instructions to our Missions in the four neutrals,
London and Turkey, repeated to all other Missions, informing
them of the new Board and requesting full cooperation in
effecting the policy of the Government as stated by the
President.
1. We have furnished the War Department with suggested instructions
to the appropriate Theater Commanders asking the latter to do
Regraded Unclassified
26
- 3 -
everything possible, consistent with the successful prosecution
of the war, to effectuate the Government's policy to take all
measures to rescue the victims of enemy persecution.
12. The Secretary of the Treasury has sent messages to the Treasury
representatives in London, Stockholm, Ankara, Lisbon, Cairo
and Algiers asking them to do everything possible to a ssist
their Missions in carrying out the policy of immediate rescue
to the victims of enemy persecution.
13. A cable to London has been drafted and is pending in the State
Department requesting Ambassador Winant to discuss the situa-
tion with the British and suggest to them that they send in-
structions to their Missions along the same lines as the
instructions to our Missions.
14. We have been in touch with the following organizations who
are working out specific operations and programs with us:
World Jewish Congress
American Jewish Joint Distribution Committee
American Jewish Conference
American Jewish Committee
Jewish Labor Committee
Unitarian Friends Service Committee
15. We are working with UNRRA on the problem of making use of the
Fedhala camp in North Africa which has room for several
thousand refugees.
16. We are submitting to the War Department today a program for
the rescue of some 1,500 refugees on the Adriatic Island of
Rab.
17. We have made all necessary arrangements with Budget for the
allocation of $1,000,000 from the President's Emergency Fund
to the War Refugee Board.
Regraded Unclassified
27
LIAM EMERSON, Chairman
EDWARD B. WITTE, Treasurer
H T. GANO, Vice-Chairman
ALFRED F. WHITMAN, Secretary
UNITARIAN SERVICE COMMITTEE
25 Beacon Street, Boston 8, Mass.
TELEPHONE CAPITOL 3660
ERT C. DEXTER
Registered with the President's
Executive Director
War Relief Control Board
RLES R. JOY
Endorsed by National War Fund
cting Executive Director
Through Refugee Relief
Trustees, Inc.
January 24, 1944
The Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D.C.
Dear Mr. Morgenthau:
The appointment by the President of & War Refugee Board
consisting of the Honorable Secretaries of the Departments of State,
Treasury and War and directed to take all measures within their
power "to rescue the victims of enemy oppression who are in immediate
danger of death", is an act of wise charity and clear vision. The
Unitarian Service Committee, which has for years considered the
rescue, transportation, maintenance and relief of such persons its
major responsibility, is profoundly interested. Working with a
carefully chosen and competent American personnel in Czechoslovakia,
Switzerland, France and Portugal and cooperating closely with other
American and foreign relief agencies in these and other foreign
countries, it has helped thousands of endangered refugees to escape
from the clutches of their persecutors. It has worked with the
Governments in Exile, the High Commissioner for Refugees under
the Protection of the League of Nations and all other authorities
concerned with these unfortunate persons and has had wide experience
in solving their problems.
Since, by the terms of your mandate, you may accept the
services or contributions of any private persons or organizations,
the Unitarian Service Committee feels impelled to offer you any
assistance within its power. Generously supported by the National
War Fund of which it is & participating member, operating on 8.
wholly unsectarian basis, and dedicated to the service of the racial,
religious and political minorities of Europe, the Committee is now
ready to place itself entirely at the disposal of your Board to
assist you in any possible way. Our personnel, our resources, our
experience, are at your command.
Regraded Unclassified
28
COPY
- 2 -
80, 1.38.
President Hoosever's Impoires of the
goverants st PREDE and rettimunat
The Committee would welcome the opportunity to
discuss with you the areas of possible cooperation.
intergovernmental Comples which would
seek to introduce Respectfully yours,
micration of politions was
returnes from central /s/ Charles R. Joy
2820,
The Provident's AGV Acting Executive Director
CRJ:DRF
Political wills 163 virst
desting, the following belief 34
attentance: James Co. Hamilton
Floh Areatrons, Panl incomit, Joseph P.
Chamberlais, Babil James 31. Speare,
and Webbt Stephen S: 2100. Dir.
heade this Countries,
4017 6, 1038.
Reprosentative: wb chirty-three covern-
meals meet at Evian. The United States
we represented by Myron C. Taylor,
be Rubert Yeli And George Brandt
of the State Department.
December 1888.
Goorge Rubley, taxas 10 his duties in
London AS director the Intergovern+
montal Committee sei - st kvian. Me
was.atimed to this post by the President,
and continued AS director until February
1989, when he WAR орасендай by Sir Horbort
Seerson.
October 17, 1989. Officers st Into & Committee
meet at shite House. Lord
chairman, Kyroa C. Taylor, vice
and Jame G. Wellons 14, cluirman of the
Advisory Committee are among those
present.
Innuary 1812.
Intergovernmental Committee meets at
Cuided Trujillo, Dominican Republic,
Among thase addressing the mesting 170
Regraded Unclassified
29
COPY
March 23, 1938.
President Roosevelt inquires of the
governments of refuge and settlement
whether they would be willing to join
the United States in setting up an
Intergovernmental Committee which would
seek to introduce order into the forced
migration of political and religious
refugees from central Europe.
May 16, 1938.
The President's Advisory Committee on
Political Refugees holds its first
meeting, the following being in
attendance: James G. McDonald, Hamilton
Fish Armstrong, Paul Baerwald, Joseph P.
Chamberlain, Basil Harris, James M. Speers,
and Rabbi Stephen S. Wise. Mr. McDonald
heads this Committee.
July 6, 1938.
Representatives of thirty-three govern-
ments meet at Evian. The United States
was represented by Myron C. Taylor,
assisted by Robert Pell and George Brandt
of the State Department.
September 1938.
George Rublee, takes up his duties in
London as director of the Intergovern-
mental Committee set up at Evian. He
was named to this post by the President,
and continued as director until February
1939, when he was succeeded by Sir Herbert
Emerson.
October 17, 1939.
Officers of Intergovernmental Committee
meet at White House. Lord Winterton,
chairman, Myron C. Taylor, vice chairman
and James G. McDonald, chairman of the
Advisory Committee are among those
present.
January 1941.
Intergovernmental Committee meets at
Cuidad Trujillo, Dominican Republic.
Among those addressing the meeting are
Regraded Unclassified
30
- 2 -
George Warren, representing the
Advisory Committee.
March 27, 1943.
The U. S. and British Governments
agree to meet at Bermuda to consider
the refugee problem.
April 19, 1943.
Bermuda conference opens. U.S.
delegation consists of Harold Willis
Dodds (president of Princeton
University), Senator Scott Lucas (Ill.),
Representative Sol Bloom (N.Y.), and
R. Bordon Reams (State Department)
May 19, 1943.
Bermuda conference terminated. Details
of determinations are considered con-
fidential.
Regraded Unclassified
COPY
31
FEB 1, 1944
MEMORANDUM FOR SECRETARY OF WAR STIMSON
Re: Making Funds Available to Refugees on Island of Rab.
I wish to preface my discussion by saying that in December
the Joint Chiefs of Staff were approached at the instance of
the Intergovernmental Committee on Refugees with a comprehen-
sive project to rescue refugees from the Island of Rab. This
plan would have necessitated direct assistance upon the part
of the military authorities involving questions of transport,
etc. On this basis the Commanding General in the North African
Theater of Operations decided that the military situation did
not permit the operation contemplated. However, since the
proposal which I am about to make is entirely different and much
simpler than that rejected by the Commanding General, and in
view of our Government's policy with respect to refugees
announced at the time of the establishment of the War Refugee
Board, I recommend the following for your urgent consideration.
Information we have received indicates that there are
presently some 1500 refugees, mostly Jewish, on the Island of
Rab in the Adriatic off the Dalmation coast. They apparently
were taken there some time ago by Yugoslav Partisans after
being freed from internment. The Island has changed hands
several times, but it is understood to be again in the posses-
sion of the Partisans.
It is believed that many of such refugees might be able
to hire beats to bring them to Italy if they had the neces-
sary funds. Similar escapes apparently have been arranged by
Yugoslav refugees now in Italy. Funds are available to the
War Refuges Board, and probably also from private organisations
for this purpose and, if possible, should be sent to these
refugees as soon as possible.
Às & method of accomplishing the foregoing, I suggest the
following possibility. It means of communication exist between
our armed forces and the Ingeslav Partisan leaders, it is
suggested that you or the Theater Commander transmit a message
to the latter requesting. -
Regraded Unclassified
32
- 2 -
(a) that the Partisans furnish local currency to
refugees on the Island of Rab so that the latter may
by their own efforts arrange escape to Italy, it being
understood that such expenditures will be reimbursed In
U. S. dollars or in such other money as the Partisans
request;
(b) That the Partisans, in the event they cannot
furnish necessary local currency, aid the refugees in
arranging escape by guaranteeing to the boat owners and
other persons assisting in the escape that payment will
be made to them by the American military authorities
upon arrival of the refugees in Italy.
(c) That the Partisans keep the appropriate American
military authorities advised of their operations in this
field.
It will, of course, be necessary for the Theater Commander
to make arrangements for payments in Italy in certain cases to
persons bringing refugees there from the Island of Rab, and
possibly for certain other financial transactions. It is also
essential that the Theater Commander continue his policy of
caring for any refugees who may be able to reach Italy as the
result of their own efforts. Such other assistance as he may
be able to give will, naturally, be extremely valuable. It
may be made perfectly clear that the War Refugee Board assumes
full financial responsibility for the expenses of evacuating the
refugees from Rab and will reimburse all outlays.
If you think that the procedure indicated is feasible, I
am sure that you will agree that it should be executed as promptly
as possible in view of the uncertainty of the continued possession
of the Island of Rab by the Partisans.
This has been cleared with Mr. Stettinius who is in agreement.
12/ H. Morgenthau, Jr.
(Carried by Secret Service Agent)
2-2-44
Regraded Unclassified
33
COPY
THE UNDER SECRETARY OF STATE
WASHINGTON
February 1, 1944
Dear Mr. Secretary:
The Department has had under consideration and
has discussed with the British & project for assist-
ing Jewish and other refugees now located in France
and Rumania. While these plans have not taken defi-
nite form, it is proposed that efforts be made to
enable the persons in question to leave Rumania and
France and be transferred to places of temporary
residence in the colonies formerly occupied by the
Italians. The Department has been informed that
there are at the present time in North Africa par-
tially abandoned cities where buildings and water
supply exist and where food could presumably be sup-
plied by the United Nations Relief and Rehabilitation
Administration. This plan, to be successful, would,
of course, require the close cooperation of the mili-
tary authorities.
We were just on the point of communicating with
the Joint Chiefs of Staff to obtain an expression of
opinion from them regarding locations in North Africa
which might be made available for this purpose and al-
so as to whether there might be any valid military ob-
jections to such an undertaking.
In connection with this plan, the problem of
transportation is, of course, an important one since
refugees might arrive out of France into Spain or out
of Rumania into Turkey in considerable numbers. We
had also intended to raise with the Joint Chiefs of
Staff the question of transportation to determine
whether or not the military might be able to make ship-
ping available for this purpose. Our experience would
seem to indicate that complete dependence could not be
The Honorable
Henry Morgenthau, Jr.,
Secretary of the Treasury.
(Original to Mr. Friedman - 2/7/44)
Regraded Unclassified
34
-2-
placed on the utilization of neutral shipping for this
purpose. As you know, neutral shipping has been used
in the past especially from Portugal to African destina-
tions, but it seems doubtful that a considerable volume
of refugees could be handled through that means along.
In view of the creation of the War Refugee Board,
it would seem more appropriate to us that this proposal
now be made by the Board to the Joint Chiefs of Staff,
if the Board decided to pursue the project, particularly
as the War Department is represented on the Board. Sev-
eral members of our staff are quite familiar with the
details of the preliminary discussions and studies which
have taken place on this matter in the past and will, of
course, be glad to confer with representatives of the
Board on the matter.
With best wishes,
Sincerely yours,
/s/ E. R. Stettinius, Jr.
Regraded Unclassified
35
DEPARTMENT OF STATE
OPY
THE UNDER SECRETARY
February 1, 1944
Dear Mr. Pehle:
I am attaching here-
with a copy of the tele-
gram to the Embassy in
London regarding the War
Refugee Board which we
discussed over the tele-
phone yesterday.
/18/ HAYDEN RAYNOR
Hayden Raynor
Special Assistant
U:IJ
Regraded Unclassified
36
COPY
TELEGRAM SENT
PLAIN
January 31, 1944
AMEMBASSY
LONDON
774 - Thirty-first.
The following telegram is sent at the request of
the President's War Refugee Board:
Refer to Department's cable 634 of January 25 con-
cerning the President's Executive Order establishing
the War Refugee Board and declaring the policy of this
Government.
In discussing this matter with the British Foreign
Office, you are requested to make it clear that the
establishment of the War Refugee Board represents this
Government's determination to effectively arry out
without delay the policy heretofore agreed upon by the
two Governments to take all possible measures for the
speedy rescue and relief of the refugees of Europe.
Although this Government on its part intends to take
all possible action with all possible speed, we hope that
this effort will not be unilateral and we wish to make it
clear that it continues to be the policy of this Govern-
ment to encourage and participate in effective cooperative
efforts with other governments.
As the President has stated, the Board of course will
cooperate fully with the Intergovernmental Committee and
other interested international organizations.
You are requested to make clear to the British
Government the position of this Government and our desire
for its cooperative action. You should explore with the
appropriate officials of the Foreign Office the possi-
bility of implementing such cooperation through the issuance
by the British Government of a declaration of policy similar
to that made by the President and the issuance by the
Foreign Office of instructions to its representatives in
other countries comparable to the instructions contained
in the Department's telegram 634.
Please keep us informed of the attitude of the
British on this-matter.
U:HR
BC
HULL(ES)
Regraded Unclassified
37
2/1/44-
NAMES RECOMMENDED BY MR. PAUL BAERWALD
Cleveland Dodge, Phelps, Dodge & Co.
Frank Adelot, Princeton
Harry Fosdick
Paul Hoffman, Studebaker Company
Eric Johnston, U.S. Chamber of Commerce
Mr. Rublee
Earle Harrison, Commissioner of Immigration
Allan Warwell
Homer Folks
John Foster Dulles
Sosthenes Behn, International Telephone
Basil Harris
Herbert Stanley, International Nickel
Regraded Unclassified
38
NAMES RECOMMENDED BY DR. WISE
James D. MacDonald
Hamilton Fish Armstrong
Rufus Jones
Clarence Pickett
Frank Graham
John Pehle
39
NAMES RECOMMENDED BY MORRIS ERNST
Russell Leffingwell
Stassen of Minnesota
Bill O'Dwyer
Frank Graham
Raymond Gram Swing
Walter Lippmann
Learned Hand
Sumner Pike
Governor Edison
Jerome Frank
Charlie Poletti
Henry Wallace
Leon Henderson
Bill Douglas
39
NAMES RECOMMENDED BY MORRIS ERNST
Russell Leffingwell
Stassen of Minnesota
Bill O'Dwyer
Frank Graham
Raymond Gram Swing
Walter Lippmann
Learned Hand
Sumner Pike
Governor Edison
Jerome Frank
Charlie Poletti
Henry Wallace
Leon Henderson
Bill Douglas
40
TREASURY RECOMMENDATIONS
James Landis
Frank Graham
Wendell Wilkie
Harold Stassen
Summer Welles
Lloyd K. Garrison
Leen Henderson
Joseph L. Davies
Eugene Meyer
Col. Charles Poletti
George Norris
Joseph Baldwin
Charles Edison
Clarence Dykstra
Charles Taft
Josephine Roche
Jenathan Daniels
Gev. M. s. Saymenak
William 0. Douglas
James Gerard
Regraded Unclassified
41
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE FEB 1 1944
Secretary Morgenthau
ROM
J. W. Pehle
I think you will want to look at the attached
statement of Congressman Celler in which he comments at
length on Breckinridge Long's testimony before the House
Committee on Foreign Affairs.
Regraded Unclassified
Entrance of Refugees Into the
United States
SPEECH
OF
HON. EMANUEL CELLER
OF NEW YORK
IN THE HOUSE OF REPRESENTATIVES
Monday, January 24, 1944
Mr. CELLER, Mr. Speaker, Mr.
Breckenridge Long, Assistant Secretary
of State, appeared before the House
Foreign Affairs Committee on Novem-
ber 26, 1943, and testified concerning
House Resolution 350 and House Reso-
lution 352. His testimony has been
printed, and in reading that testimony
I find thereih so many faults and errors
with reference to the subject matter of
the resolutions in question that I deem
It incumbent to point them out and high-
light them. They indicate a culpability
that cannot go by unnoticed. They must
be corrected, because they caused grave
and erroneous impressions in the minds
of the committee members, and false no-
tions in the minds of the public gener-
ally. They seem to indicate not only a
lack of appreciation of the subject mat-
ter of the resolutions but seem to Indi-
cate that the gentleman, in questions in
his testimony, went pretty far afield in
43
404
CONGRESSIONAL RECORD-APPENDIX
JANUARY 25
is desire to bolster his forced and false
years. Not slace 1863 have Texas trans-
shall be permitted entrance If the per-
onclusions. A little research would
grants come to our country. At a time
son Intending to enter has relatives in
ave told him of his blunders. He de-,
when mass murders in Pestung Europa
Axis-controlled Europe, and he laid
erves condign criticism. It indicates
were greatest, in 1943, when the doors of
down as a condition precedent to en-
hat he is no longer entitled to hold
refuge should have been kept open, they
trance that the Interdepartmental Visa
way over refugees and visas. For ex-
were deliberately, practically closed.
and Control Committee cannot permit
mple, he said, in his testimony as is
Only 5.9 percent of all immigrants ad-
entry If the Intended Immigrant has
ppears on page 32, as follows:
missible came in to that year. Nobody la
such A. relative in Nazi-controlled Eu-
We have been interested in refugees. and I
asking for any change in the immigra-
rope. Tpão facto, that regulation cut
sink there has been some indisposition on
Uon statutes. We are saking changes in
off well-nigh 90 percent of all potential
be part of some officers to accept a thought
the impossible conditions and cruel,
refugees from Europe. Be advised that
bat the American Government ought to «po-
cold-blooded regulations that are laid
most refugees have some relatives in
lalim and make It particularly direct that
down M to "screening" by the Depart-
are Interested only in the Jews. We have
Axis-controlled Europe. That regula-
it from the start that we could not exclude
ment of State, and particularly by Mr.
tion in and of itself cut down immigra-
ther persons from our governmental and
Long.
tion to the bone. Mr. Long had the
Incial activities.
However, because of the richly de-
hardihood to say that he was still adher-
served efitioisms brought against Mr.
ing to the historic attitude of the United
On page 45 appears the following as
Long, I an happy to ntate that those to
States as & haven for the oppressed.
dr. Long's testimony:
Authority In the Department of State are
Frankly. the Statue of Liberty in New
The State Department's policy, 1 think,
about to decree that Mr. Long shall no
York Harbor is supposed to hold up a
just be that we cannot exclude persons from
longer be in charge of refugees and visas.
Mght beside 5. golden door to welcome
ur sympathy and our sympathetic attention
they are not Jews.
As proof positive of the blunder made by
the tempest-tossed of all lands. If Mr.
Mr. Long when he undertook to state
Long has his way, that light will have
No one asked Mr. Long or anyone con-
what he thought was the attitude of the
to be blotted out and the Statue of Llb
lected with the State Department to ex-
State Department with reference to ref-
crty can no longer welcome In Immi-
lude non-Jews. I think It la degrading
ugees, we find a member of the Cabinet
grants to this country
nd shameful that an official of our ad-
in a different Department, Mr. Biddle,
Mr. Long ruled that the Interdepart-
ninistration should imply, much less
the Attorney General, taking tssue with
mental Visa Control Committee could
ver, that we intend to withhold aid from
him. Mr. Biddle emphatically and
not give A reason for rejection of an Ad-
ion-Jews. We are in favor of aid to all
scorchingly took issue with Mr. Long.
plication for a visa for a refugee. It
ersons, but beyond that, and not as is
You can see how serious was the mis-
takes months for applications to be
ubstitute, we want a special and an es-
chief. It is rare that & Cabinet officer
acted upon. Five departments must re-
raordinary aid concomitant with espe-
challenges the statement of any Assist-
port on each sponsor and each tmm)
dal and extraordinarily cruel treatment
ant Secretary. It is only done when A
grant, whether the latter be in Europe
Jews and all others threatened with
serious and dreadful error has been
or in this country or wherever be may be
eath. No minority people are treated
made.
The Departments involved are the State
cruelly as the Jew. All others are In B
Mr. Long has sought to give the Im-
War, Navy, and Justice Departments,
prison, but the Jew is in a death charp-
pression that we had received in 10 years
and the F. B. I. Each Interdepart-
er. All others may with victory ulti-
580,000 Immigrants and that most were
mental Visa Committee is composed of
nately breathe free, but the Jew Is In B
Jowish refugees. The 580,000 mentioned
representatives from each of these five
harnel house-most of them already are
by Long include visas authorised for
entitles. It. takes at least 6 months be-
a sepulcher.
quota, nonquota persons, and those in
fore the investigation is completed. A
The gentleman from California [Mr.
transit. Often a visa authorized is not
hearing is held. The sponsor for the
ROCERS), who is present in the Chamber,
Issued. One Issued is frequently not even
immigrant or his lawyer appears and
as offered one of the aforesaid resolu-
used. Mr. Long, without even ao much
pleada. It takes months for 5 decision
lons providing extraordinary treat-
as "by your leave," bunched transients,
to be reached. Then no reason La given
nenta for those who are being extraordi-
visitors, and conquota entrants and or-
for 1 rejection of the application. If
harily and cruelly treated. It calls for
dinary immigrants with refugees. He
national security is involved, of course,
he establishment of a special board ap-
thus gave the impression that we gave
no reason should be given, but if that
pointed by the President to find havens
sanctuary to 580,000. That was utterly
is not in the case, why should not a
and refuge for the victims of Naxi tyr-
false. Mr. Biddle explained that within
reason for the turn-down be net forth no
anny. The President in his wisdom Bat-
the last 10 fiscal years the average num-
that, If possible, the causes of refusal
arday last, by Executive directive, set up
ber of quots and ponquots immigrants
of entrance might upon a renewed appli-
he War Refuge Board, similar to the
was only 26,647, although the annual
cation be removed.
authority the gentleman from California
quots was 153,774, and that in the year
Purther, no application can be re-
Mr. Roomal advocated, and the Presi-
ending June 30, 1943, only 23,725 persons
newed until 6 months have elapsed. If
dent stressed in an accompanying state-,
entered the country, 12,000 of them being
finally, in many Instances the applica-
ment to his directive the very details that
nonquota. Mr. Biddle added:
tion, after all these vicimitudes, is drant-
are embodied in the so-called-
During the same 10-year period the an-
ed, it is granted for a corpse. In every
resolution, and he asked directly and by
court & reason is given for an adverse de-
Inference that especial treatment be nc-
nuel average number or persons emigrating
from the United States was 34,000, leaving a
claion. But before Mr. Long and his set-
torded the Jews, who are being helnously
net Increase of 28,287 immigrants. More-
up everybody is kept in complete dark-
ortured and pillaged and plundered by
over. while in 1920 the alsons constituted
nem. Purthermore, 50 percent of the
Hitler and his Chilslings.
6.9 persens of the population in the United
Judgments of the Interdeparimental
Further, on page 22 of the testimony
States, et the present time they comprise
of Mr. Long we find the specific state-
little more than 3 percent of the popula-
Committees, the visa-control commit-
ment:
Non.
teas, have been reversed by the Presiden-
tial Board of Appeals. clearly indicating
The point to made that the bistorie stttcude
In contrast to Mr. Long, Mr, Biddle
that in at least 60 percent of the cases
pt the United States in providing a haven to
gives facts, not fancy,
the oppresaed has not been stopped. The
which were controlled by Mr. Long, be
It la ODE thing for the Congress to
State Department has kept the door open. It
was wrong. and that the application
1450 acts with reference to Immigration,
perfectly acreened. The door to
should have been granted and not turned
open. There are vaolocies ed the
and is is another thing for those to
down. These appeals consume more val-
list of quotas.
charge of the administration of the
unble time. Meanwhile Hitler's hangmen
statute so to administer H as to deny
That la an astonishing statement and
do not walt.
the intent of Congress 66 embodied in
does not square with the facts. The
the statute. Mr. Long, for example, net
Mr. Long testified as follows, also on
"door is not open." It is $ a ting, a
up all manner and kinds of conditions
page 22:
Pery tiny crack, For example, fower im-
and restrainta with reference to the ND-
Mr. Lows. In December 1041 most neutral
migrants entered during the past fiscal
plications for entering of immigrants,
shipping disappeared from the, seas. Prior
than entered durthg the last 00
and among them be said that no one
to that there had been neutral shipping, and
44
944
CONGRESSIONAL RECORD-APPENDIX
A405
me American ships have been running: but
STATEMENT IT THE COMMISSION ON REMOUR OF
The failure to INSURE Jewe from the Balken
of that time there WM practically noth-
THE AMERICAN twax Communica
countries was not attributable entirely to the
DE- There are today a few tittle Spanish
opposition of the Name, as Mr. Long's tostl-
nd a few little Portuguese vesaols which are
mony has Indicated. It le known that red.
oming in here, and the State Department
tape and delay on the part of the British
ontinues to issue visas to refugees. We are
In presenting statistics on the number of
authorities were responsible for the fact shee
muing visas to the extent of about 100 e
refugees admitted into the United States, Mr.
full advantage was not taken of all the op-
Long gave the State Department's total-
eek.
portunities presented.
Mr. MUNDT. The limitation of 100 per week
580,000 in & 10-year period-of visas Issued,
quota, nonquota, and even transit. Let us
Mr. Speaker. at this point I desire to
now Imposed by the shipping limitations
ather than by any limitations of the State
dwell a bit, again, on these figures. I must
offer the Alde-Memoire of the American
Department as to the number of visas avail-
set the record completely straight.
Jewish Conference, which I adverted to
(ble?
To whom were these visas issued? Mr.
heretofore, and for which 3 have received
Mr. LONG. The movement of the people bas
Long's testimony tended to create the er-
unanimous consent to include in the
iopped.
roneous impression that all 580,000, were Jews.
RECORD as my own remarks:
or the 680,000 visas issued, only 476,980 were
That statement does not square with
used by immigrants. or the latter. about
AMERICAN JEWISH
the facts. Mr. Long is wrong when he
200,000 wordrefugess from Mitlerism, and not
ON JEWISH
ays that visas were being issued to the
all of them were Jews. Purthermore, 16
REFURES, 1983-48
extent of about 100 a week, which
should be pointed out that during the same
CONTENTS
would make 400 a month. In truth and
period, 87,634 allens were deported from this
country, thus reducing further the total
1. Displacement of Jewish population in
n. fact. visas were issued at the rate ot
only about 200 a month. Now as to
number of immigrante actrued in the 10
Europe
hipping space, or ships, Spanish and
years under consideration.
What happened to the 8.200,000 Jaws who
Portuguese vessels are now calling regu-
The official figures of the Immigration and
in September 1999 lived in the countries now
Naturalization Service reveal that In the
dominsted by the Axis? Refugees, avacuees,
arly at ports all along the Atlantic coast
period between January 1, 1933, and June 30,
and departees. Countries of immigration
and there are many others. I went to
1943, the number of Jews who came in under
which admitted refugees and evacuees
the trouble of examining Lloyds Register
national quotas totaled 166,843, The total
Countries to which Jews have been deport
of Ships and I also have before me an
number of Jews admitted on emergency ylaas
ed by the Name.
excellent report of the World - Jewish
was 43,089, but sume of these was Included
11. Jewish immigration into the United States
Congress, entitled "Neutral Shipping
in the 166,048, since they later remitered
under the national quotam. These totals m-
General immigration. quota and non-
Facilities" by Avram A. Juditch, mem-
per of the Yugoslav Jewish Representa-
clude Jewish immigrants from all over the
quota. Jowish immigration, number or
world, some of whom were not refugees from
refugees. Unfilled quotas. Enigretion from
live Committee. I gather, therefrom,
Hitler.
the United States. Ratio of Jewish Immi-
that aside from ships coming from
grants to Jewish population.
Argentina and to the United States and
The restrictions on immigration imposed
III. United States visa procedure in wartime
joing from the United States to the
by the State Department are a definite
Argentine, and the same with Chile, I
hindrance to the rescue program. In the past
Application for Theat (Form BC). Consill-
eration of applications by Government agen-
lind that there were 25 passenger ships of
year, only 5.9 percent of the immigrante per-
cles. Criteria for admission of allens in
various tonnages available, plying across
mitted under the quota law were admitted.
wartime. Preparation of application: Primi-
the Atlantic between the United States
This is due, in part to the elaborate "screen-
ary committee. Advisory approval, period of
and Spain, 16 Swedish ships, 11 Portu-
ing" process established by the State Depart-
ment. We agree that every pressution must
validity. Review of application by Inter-
ruese ships, and 12 Turkish ships.
be taken in the intereste of security to pre-
departmental visa review committee. Board
Those ships could have carried Naou-
vent the admission of enemy agents. but
of appeals. Application of allens of enemy
sands of refugees into the United States
nationality. Suspended cares. Quota year.
existing procedure la needimaly cumbrous.
If they were otherwise admissible, 80 that
In other countries refugees are admitted, in-
IV. Comments on visa procedure
when Mr. Long says there was no ship-
terned, and released after complete Investi-
Filing of application often delayed on NC-
ping space, he does not know what he
gation. A harsh and unjustifiable rule of the
count of difficulty in obtaining Information
is talking about or deliberately did not
Visa Division weight very heavily against the
from applicant abroad. Latest changes in
deal with the truth, in either of which
admission of persons with near relatives in
BC form complicate procedure. "Hostage
events It is a sad commentary on affairs
Axts Europe. This serves to har admission to
angle" handicaps approval. Occupational ex-
many people in need of & haven.
as conducted by Mr. Long as head of
pertence interpreted " "useful to war ef-
the Visa and Refugee Division of the
fort" Applicants from Spain and Portugal
State Department. That is not all. I
XV
have to account for the manner in which
went to the trouble of examining Lloyds
Mr. Long bas released the Leat of the man-
they reached those countries. Rafugeee not
date of the Intergovernmental Committee
in "acute danger" denied visas. Internets in
Register of Shipping with reference to
now functioning in London, and declared
camps cannot obtain visa unless they reach
cargo ships. Mr. Juditch likewise pre-
that according to this madale, the Com-
consulate, but cannot be freed unless they
sents interesting data on cargo ships.
mittee TM given "plenary authority to do
obtain visa.
The ships that I spoke of before. 16
whatever they can within and without Ger-
Swedish ships, the 25 Spanish ships, and
many and the occupied territories." This
AMERICAN JEWISH CONFERENCE -
the 11 Portuguese ships, were passenger-
statement has been widely Interpreted to
MORE on JEWISH REQUESTS, 1930-1945
bearing vessels. There were several
mean that the Committee La empowered to
I. DESPLACEMENT OF THE Jawan POTULATION
hundred cargo vessels that were plying
deal with all phases of the problem of resette,
IN SUROPE
the Atlantic during the time in question,
including direct negotiations with Germany
owned by Argentina, Chile, Portugal,
for the release of Jaws and other persecuted
Since the advent of Hitler in 1989, and par-
Spain, Sweden, Switzerland, and Tur-
peoples.
titularly since the outbreak of war in 1939,
But Mr. Long's interpretation has now been
the Jewish population in every European
key-a veritable bridge of ships in the
termed "absolutely Incorrect" by the head-
country has been displaced from Its original
registry of neutral countries, and those
quarters of the Intergovernmental Com-
habitation by voluntary emigration, evacus-
Intended immigrants would have been
mittee in London. according to cable dis-
Non, or deportation. For purposes of our
only too happy to sleep even on a board
patches. Patrink Malln, American vice di-
present analysis, all those who have escaped
rector of the Intergovernment Committee,
the Nami dominated and occupled countries,
on a cargo vessel. Many cargo vessels
denied that the Committee mandate can be
are classified M refugees (Including STRC-
carry passengers or can be made to do
interpreted to mean, - Mr. Long said. that
uses): all others are deportees. The latter
EO. So that there could have been thou-
the Intergovernmental Committee has been
category embraces three who have been de-
sands more of refugees brought into
given "the authority to do whatever It can
ported from one country to another (In Maxi
this fair land of ours, even on cargo
within and without Germany and the oc-
Europe) or from one place to another with-
ships. The Long attitude said "No."
cupied territories.". Mr. Malin pointed our
in the limits of the name country. It should
The Long gates are down.* The Long
further be noted that the cisasification of
that the mandate visa questically
door Is closed.
"refuges" does not include the Fewlats Im-
with respect to persons and not committee.
migrants from eastern Europe or other coun-
Remember this is the same Mr. Long
In view of these contradictory Interpre-
tries prior to the Name occupation of these
who called the Italian conquest of Ethi-
tations, wa urge Immediate clartination of
countries.
ppla, "the fruitable harvest of Mussolini
the eliuation. Confusion and conflict of
The following table gives the country of
enterprise."
opinion at this late date are inexcusable.
origin of refugees and deportees:
A406
CONGRESSIONAL RECORD-APPENDIX
JANUARY-S
TABLE I-Jeurtsh refugees and deportees,
prior to the war. (The Agure 190,000 includes
period for Germany and Austria val Th
1033-43, classified by category and country
some 26,000 nonimmigrants who came in on
per year, or a total of 164,220 for the 5%
of origin¹
temporary visa, M visitors, etc.)
period.
The number of refugees who entered Pal-
In 1943, the total quota Immigration -
estine (190,000) is only part of the total
the United States was 9,045, or 5.9 percess e
Departees
Jewish Immigration into that country during
an admissible quote of 163,774. Even -
Refuges
the same period, which was about 800,000.
ing all immigrants-quota and nonquota.
Country
(jodud-
From
Within
Total
Sweden should be added as & country of
admitted to this country in 1943, the form
Ing ETBC-
one
the limits
refuge, as it is giving asylum now to some
was only 23,725, which was the lowest in
Dest)
country
of the
to so-
same
12,000 Jewish refugees from Denmark and
ber since 1502.
other
country
other parts of Europe.
4. Emigration from the United States
In Portugal many Jewish refugees are in
All countries
MS,000
2,205,000
5,217,000
transit, leaving there some 600 to 000 at A
During the same period (1933-34) 2018
2,291,000
legal allen residents of the United States MI
time.
Foland
200,000
2,000,000
Hungary has recently admitted several
the country. Of these, 2,161 were In
2,534,000
thousand Jewish refugees who exceped from
Thus, the total net immigration (quots If
Unkn of Boviet
Socialist Be-
ponquota) to this country for the pas
publics
1,200,000
Poland through the "underground."
1,200,000
years was 223,985, while the net Jewish Inc)
Germany
285,000
160,000
445,000
TABLE III-Jensish deportees (Including refu-
Austrie
20,000
120,000
gration (immigrante and nonimmigues
100,000
100,000
265,000
gees trapped in occupied territories), ce-
was 206,684.
Rumania
185,000
France
30,000
70,000
100,000
200,000
cording to country of deportation (Includ-
Protoctorate
25,000
20,000
40,000
95,000
ing deportess within the Hmits of their own
5. Ratio of Jewlsh Immigrants to Jewish
60,000
25,000
00,000
population
Slovakia
10,000
Lithusnia
10,000
20,000
40,000
country)
Latvia
15,000
15,000
30,000
All countries:
2,840,000
The Jewish immigrants who entered &
Belgium
25,000
50,000
75,000
United States in the past decade (200,MM)
Holland
25,000
80,000
106,000
Poland
2,600,000
constituted only 4.1 percent of the Ing
Yugoslavia
8,000
25,000
33,000
Greece
3,000
10,000
13,000
Occupied Soviet territory
$ 60,000
population- in this country (estimated e
Bulgsris
10,000
10,000
France
58,000
5,000,000) and about 25 percent of
Other Europe-
Belgium
30,000
Jewish population (8,250,000) that lived
20,000
5,000
35,000
Holland
35,000
1939 in the European countries of emigratin
Other European countries
70,000
now dominated by the Axis. Compared was
I From Jewish Refugor, by Kurt R. Gromman and
other countries of immigration and retuin
Arich Tartakower On manueript) to be published by
This figure is indeterminate, ne it may
this in the lowest ratio. England, for e
the Institute of Jowish Affairs, American and World
vary in tens of thousands.
ample, having admitted 65,000. Jewish na
Dowish Congres, cb. X, table L
With the exception of Poland and the 00-
goes, Increased its Jewish population by
It appears from this table that 5,261,000
cupied parts of the U. 8. B. R., to which de-
percent. Similarly, the 16,000 Jewish
Jews. out of a total of 8,250,000 Jewish popu-
portees from all countries were taken, the
goes in Switzerland constitute 8.6 peromi
lation in the same area in 1989, have been
countries mentioned in this table harbored
the local Jewish population: in Argests
uprooted from their original homes. The
refugees from central, eastern, and western
23,2 percent: Australia, 97.5 percent; Bod
refugees who escaped Nazi dominated and
Europe who were trapped by the Nami occu-
Africa, 8.8 percent; Canada, 5.2 percent
occupled European countries have found
pation.
The following table presents an
their way to various parts of the world to
n. JEWISH IMMIGRATION INTO THE UNITED
of the annual quota for each country of
countries of immigration overseas, to the
STATES, 1933-42
gration, the number of quota Immigrants
interior of U. 8. 8. R. and to neutral coun-
mitted to the United States, and the DUE
tries in Europe.
1. General immigration
ber of registered applicants for visas,
The following table gives the distribution
The total number of alien immigrants en-
TABLE IV.-General and Jewish quota
of these refugees (and evacuees) in the vari-
taring this country from June 30, 1933, to
gration into the United States, June
ous free countries:
June 30, 1943 (10 years) was 476,930. or
1933-June 30, 1943
these, 293,882 were quota immigrants. The
TABLE II.-Jewish refugees, 1933-43, classified
total quota for the same period was 1,537,740.
SELECTED COUNTRIES HOW UNDER AXIS DONOR
by country of immigration (and asylum)
This means that less than one-fifth of the
TION
All countries:
2,421,000
quota was actually admitted to this country.
(Quota immigrants are classified according to
U.S.S.R
1,800,000
country of birth.) It should be pointed out,
United States
100,000
that of the total annual quota allotted to all
10-year
Total
Total
Palestine
Country of Will
120,000
counries, 58 percent is allocated to Great
quota
general,
Jewish,
1900-0
1005-01
England
65,000
Britain, Northern Ireland, and the Irish Frée
dia
Switserland
16,000
State, and about 16 percent to Germany and
Spain
$12,000
Austria. Poland receives 4 percent; Italy,
Argentina
50,000
8.7 percent; France and 8weden, 2.1 percent
AD countries
1,67,76
202,882
165,756
a
Breat!
25,000
each: the other countries, 1 percent or less
Total
Chille
14,000
each.
countries
471,070
220,003
149,231
Bolivia
12,000
2. Jewish immigration
Urugusy
7,000
The total number of Jewish immigrants
Bolgium
12,040
2,486
1,471
Other Latin American
Unigaria
entering the United Blates during the same
1,000
616
countries
28,740
18,509
7,052
20,000
10-year period was 180,766. To this may be
Dearig
1,000
500
China
25,000
added 43,089 nonimmigrante who were ad-
Dennark
11,010
2,989
M
South Africa
8,000
mitted on temporary viens. (Some of these
Returnis
1,100
481
Australia
9,000
France
nonimmigrante changed their status as Im-
50,860
7,402
2,005
Canada
Germany
220,570
121,454)
8,000
migrants after reentering the country on per-
Austria
16,180
Other countries
1,548
07,321
40,000
manent visal.) Out of this total of 208,045,
Green
3,070
2,051
117
Tables II and III are compiled on the
about 190,000 were refugees. (See previous
Hungery
0,690
6,874
4,117
basis of data In Jewish Refuges, ch. X.
section, table II and explanation.)
Italy.
50,000
21,149
as
Latria
2,300
1,170
Is la estimated that only some 2,300 Jewish
.3. Unfilled quotes
3,860
1,817
1,006
refugees have remained in Spain, as of Jan.
Unfilled quotas for all countries in the
Lussmburg
1,000
200
12, 1944 (JTA News Jan. 18, 1944).
Netherlands
51,430
4,50
1,480
part 10 years totaled /1,244,080. Unfilled
Nurway
28,770
2,979
31
E
The number of Jewish refugees in the
quotas during the same period for 20 coun-
Poland
05,240
$0,151
$1.70
XE
U. B. 8. R. comprises 1,200,000 Soviet citizens
tries now Axis dominated or occupied, totaled
Bumania
4,770
3,310
2,719
of White Russia, the Ukraine, and parts of
361,567.
8,450
3,931
453
other previously occupied territories, and
Other consitries,
From June 1932 to June 1980, when emi-
Jewish traml-
600,000 from eastern Poland and the Baltic
gration from Germany and Austria WM still
gration, 1,031.
States which were occupied by the Red Army
in 1909. Those refugers were svacuated by.
possible on a large scale, the United States
admitted from those countries only 78,000
, Secrei: Helenses of the Immigration and New
the Boviet authorities into the interiors of
quota immigrants (of which 50,000 were
sation Service, D. B. Department of Justian,
Astatic Russia.
Jews), 1. e, less than half of the admissible
mation supplied by the National Refuge Service)
The number of refugess admitted to the
Intended quots and nobquota allen Immignale
United States (190,000) is calculated on the
quota. The admissible quota for the wame
country of birth).
Registered applicants for YIM at the United
basis of the total Jewish Immigration to this
Sources: Jewish refuges: National Refu-
consulates abroad. Information supplied by
country less that which came from Canada,
scoording to United States Consolar Service return
Poland, Rumania, Lithuania, and Hungary
ges Service: Interpreter releases, published by
Common Council for American Unity.
Source: Jewish Refugee, ch. X, table
Regraded Unclassified
45
1944
CONGRESSIONAL RECORD-APPENDIX
M07
fil. UNITED STATES VISA PROCEDURE ESP WAR
B. Preparation of Application for Primary
consular service-are hold in suspense in a
TIME
Commitse
Rinte Department or 45 American consulties
(a) Application for please
Form BO unsell be Bled la six copies will the
abroad. After the territories euro net the
Alten applicants desiring YIDAA to the
Visa Division of the State Department. After
applications will Date to The renewed. it,
United States-whether for permanent im-
ascertaining the sponsor's dinancial ade-
however, the applicant can reach an Ameri-
migration, preference quota, temporary, or
quacy, & copy of the form is negit so the Inves-
can consul before the 0 months of validity
transit-must have BO forms filed in their
tigating agencies: The Immigration and Natu-
expire, he may obtain bie visa.
behalf with the Visa Division of the United
relization Bervice, F. B. I., Military Intelll-
10. Annual Quote
States Department in Washington, D. o.
gence, Naval Intelligence, and the State De-
Form BC, issued by the Visa Division (MC-
partment. It usually takes from - to 6 weeks
The annual quota for 5 given country ex-
and revision, July 1, 1943). is 50 Inches in
for the reports to come from these agencies.
tends only for 1 fiscal your and may not be
An examiner then prepares the material for
carried over to a. succeeding year. If an
length (four legal-aine sheets printed on both
sides) and contains all questions pertinent
the Interdepartmental Visa Committee,
applicant who has received & VIAL having
known Also M the Primary Committee.
been assigned a quota number, to unable to
to Information required by the State Depart-
sail within the fiscal year of his quota aum-
ment regarding the alien applicant.
4. Action by the Primary Committee
ber, be forfeits his visa and bas to apply a
(There are some categories of allens for
The Primary Committee consista of one rep-
the consul for a now CIDE. It should be noted
whom no BC form may be required, such an
resentative from each of the departmente
that the quote number le assigned to the
native-born citizens of Independent coun-
mentioned in the preceding paragraph. If
applicant upon the Issuance of the visa.
tries of the Western Hemisphere, British
the case La approved-1. advisory approval to
native-born subjects, citizens of Canada or
IV, COMMENTS or VISA PROCEDURE*
granted-It in forwarded to the consul abroad
Newfoundland, persons entitled to nonquota
for action. If the consul-who has final decl-
L.,Fuing of application
status except enemy allens, etc.)
ston in granting a visa-ta natisfied as to the
Stuce the BC form must be filed with the
Part B of Form BO is to be filled out by
applicant's eligibility, be requeste a quots
Visa Division in Washington (and not with
the alien spplicant or by an American spon-
number from the State Department in
the consulate abroad), much precipus time
sor who is most familiar with his personal
Washington. The latter cables a. quota
may be lost in obtaining the necessary Infor-
history and background. Each applicant
number. or senda is air mail. if one is available.
mation from an alsen applicant who la
over 18 years of age must fill out & separate
11 the consul disapproves. the case le referred
abroad. Very often the American sponsor
form (B). Part o is to be filled out by the
back by him to the State Department for
who files the application la not familiar will
financial sponsor. Bach alien must have two
further consideration
the numerous details of the allen's life his-
sponsors. If the sponsors, or the alien ap-
8. Period of Validity of Advisory Approval
tory required to be filled out in form SC.
plicant (If be happens to be to this coun-
An advisory approval to valid for e months
In some caset, due to communication dim-
try). wish to appear for a hearing before the
If the applicant did not obtain his Visa by
culties, such information may never be
Interdepartmental Visa Review Committee,
they must file an application for such a. hear-
that time, for whatever reason, the sponsor
obtained.
tng (Form IVRC-1) together with the BC
has to apply for an extension, indicating his
2. Changes in Form BC (made July 1, 1943)*
form. Witnesses (may be citizens or allens)
continued Interest in Uie applicant and ability.
When the BC form ww revised by the State
who know the applicant's life history may
to support him.
Department on July 1, 1943, the following
also appear for a hearing, upon filing a notice
8. Interdepartmental Visa Review Committee
important changes were made, which dom-
of appearance at the same time na the spon-
This summittee, consisting of representa-
plicate the procedure:
scrs.
tives of the same departments as those of the
(a) The question (No. 15, part B) M to
(b) Administrative procedure tn the Visa
Primary Committee, reviews the Casos of
the applicant's "places of previous residefica
Division
applicants rejected by the Primary Committee
(city and country)" requires "giving approxi-
1. Consideration of Applications by Four
It conducts hearings, at which the sponsors
mate dates strice age of 14 years." In the
Bodies Possible
or/and other witnesses may appear. The
former BO form only a 10-year period was
Under the authority vested in the Secretary
déclaion la made on the basis of the informa-
requested.
ston in the record and the testimony of the
(b) The sponsor must now Indicate file
of State by the President's proclamation of
November 14. 1941. restricting entry Into and
witness. If this committee disproves the
occupation and his residence for the past 10
case, It goes automatically to the Board
years instead of 8 years. The sponsor is
departure from the United States of all per-
sons, the Visa Division has get up a series
of Appeals. (No appeal to the Board is
required to give more specific information
of steps by which applications of aliens are
necessary.)
in regard to his American citimenship and
given careful consideration and review, to In-
7. President's Board of Appeals
must answer questions (Nos. 25 to 28, part
B) about his own political thinking and
sure the interesta of the United States during
The Board of Appeals consists of two mem-
attachment to the United States Consti-
this national emergency.
bers appointed by the President, who are DOL
tution.
Applications may be considered by four
supposed to represent any branch or agency
J. Hostage angle
Instances: First by . primary committee.
of the Government. Their dectation la based
Bection 7 of this application deals with
next by an Interdepartmental visa review
on the evidence of the record and witness
"close relatives in countries other than the
committee, then by the board of appeals, and
submitted by the previous two committees.
last by the Secretary of State, who has final
United States." This section has proved to
The board may ask these committees for addi-
authority.
be a serious handlesp in the consideration
fional investigation and data. The approval
of many cases because the Visa Division still
3. Criteria for Admission of Aliens in
of the Board may be reversed by the Secretary
takes into consideration the so-called hostage
Wartime
of State, who has Anal authority. If the
clattre. This means, that the applications of
application in denied by the Board of Appeals,
Among the classes of aliens deemed preju-
people who have relatives in any one of the
it may be renewed by the same or different
dicial to public interest, there is one group
Nast-occupied countries are usually refused.
sponsors after 6 months. The antire original
of aliens having close relatives in enemy
Quite frequently this is the only cause for
procedure has to be started over again, MF if
countries. It is considered that since the
refusal.
It were $ new case.
relatives are kept as bostages by the enemy.
the alsen immigrant might be forced to en-
8. Applications of Aliena of Enemy Nationality
4. Occupational experience
page in activities in the United States of
All applications for allens of enemy nation-
Question No. 9 (part B) dealing with "ocad"
America which might be detrimental to our
ality. whether natives, citizens, subjects. or
pational experience" is frequently Interpreted
country. However, the regulations make a
dentaens of enemy countries, must be consid-
by the Visa Division M requiring such need-
clear that this factor la to be considered
ered by the Primary Committee, the Integde-
pational experience as may be regarded "use-
along with other evidence and should not be
partmental Visa Review Committee and even
ful to the war effort of the United States."
cause for denial to enter,
If-approved by these two bodies, they must
Buch an interpretation 19, of course, not pro-
Emphasts is now placed on the probability
also be considered by the Board of Appeals.
feased publicly, but numerous inquiries Blong
of the alten being of benefit to our country,
(Enemy countries are Germany, Italy," Japan,
these lines load to the conclusion that this
especially in defense work.
Bulgaria, Hungary, and Rumania.)
le & criterion frequently employed in deter-
Close relatives-parente, husband, wife,
mining the fitness of an applicant for admis-
9. Buspended Cases
children-in this country are also considered
ston into the country., It gerves to disqualify
Visa applications of allens now realding in
as factors favorable for admission of allens,
many applicants who are either professionals
since the reunion of families is regarded 5.0
enemy territory-where there is DO American
or have been merthants to Europe.
beneficial to the morate of the American elll-
5. Rejugees in Spain and Portupal
Bena, or residents, involved.
Italy, having been recognized by the
There vas . time when applications sub-
United States of America, Oreal Britain, and
Soviet Russia, M A coballigerent, le DO longer
mitted on behalf of people in Spain and
a According to Interpreter Releases, pub-
Portugal were given preferred consideration.
lished by Cummon Council for American
regarded M an anamy allen for purposes of
selective service in this country. However,
This policy has changed completely in the
Unity, volume XX, No. 40, October 29, 1043.
A Summary of Visa Procedure in Wartime, by
the State Department has not yet issued any
statement with regard to Immigration from
Source: American Jewish Congress.
Cecilin Rasovsky Davidson.
Italy,
Bouroe: National Refuges Service.
past a months. Relatives who now appear
at hearings before the Interdepartmental
Visa Review Committee are now questioned
in detail as to "how the applicants got to
Spain," although members of the committee
know what is common knowledge to every-
body-that those people succeeded in getting
into Spain from France by escaping over the
Pyrenees. In this connection another ques-
tion put by the committee la with regard to
the applicant's stay in Spain. Again is is
common knowledge that people who escape
into Spatn are arrested and interned at Camp
Miranda or put into prisons. Many of them
are released afterward as the result of per-
sistent efforts on the part of friendly gov-
ernments and private relief organizations.
Nevertheless, the committee Instats on ask-
ing the sponsors details concerning the re-
lease of the applicant. Inevitably most of
these questions must go unanswered, since
the people who appear at the hearings usually
know nothing or very little about the efforts
in Spain. The failure, however, to answer
these questions produces an unfavorable im-
pression on the committee, resulting very
often in a refusal of the application.
6. Refugees not in "acute danger"
Two other considerations militate against
the granting of visas. The first is & criterion
entitled "Not Being in Acute Danger." This
applies to people in such countries 55 Spain,
Portugal, Tangler, Jamaica, Cuba, and other
Latin-American countries. It is. of course,
true that such people may not be in danger
of extermination. Many of them, however,
have relatives in the United States whom
they naturally wish to join, or generally are
anxious to begin life anew in America as
contrasted with the rather hopeless existence
that most of them lead in places like Jamaica,
Tangier, etc. In most instances these people
have no possibility of earning a living in
these places, since many of them are detained
in camps. Furthermore, if these refugees
could leave for the United States, they would
make room in these places for others to come
in, yet their applications for visas are in most
cases refused.
7. Interness cannot reach consulates
The second consideration is that the De-
partment of State refuses to consider visa ap-
plications for refugees who are Interned in
camps in Mauritius, Cyprus, etc., which are
under British rule. The attitude of the Visa
Division is that It cannot act on these appli-
cations so long as these people are not re-
leased unconditionally from their internment
80 that they may appear at the consiblates in
person. On the other hand, the British
Government will not release these people
unless they show valid visas for another
country. The result is a viclous circle, It
should be noted that the Jewish refugees In
Mauritius were deported there to 1940, after
they had tried to enter Palestine without cer-
tificates. Many of them have families in the
United States who are anxious to bring them
to this country. To date their applications
have not been acted upon for the reasons
Indiested.
47
February 1, 1944
3:30 p.m.
TAX BILL
Present: Mr. Bell
Mr. Paul
Mr. Surrey
Mr. Gaston
Mr. Smith
Mr. Sullivan
Mr. White
Mrs. Klotz
MR. PAUL: The heading of the discussion is
Incentive Taxation.
H.M.JR: The forty-five in your room - this has
nothing to do with this meeting, but it is very annoy-
ing - George McAneny is an old friend of mine from
New York.
MR. PAUL: Did he come in to see you? I have got
a report on my desk. I heard he was coming. Sammy
Klaus has been working on it.
H.M.JR: Well, the form in which he did it - "Here-
by under Section 101, retroactive for three years" -
is this America or some other place? Don't we even
get a chance to be told why? I thought it was the most
high-handed thing I ever heard of. He says most of the
money comes from the Rosenwald Foundation. No excuse -
no reason.
MR. PAUL: I have got the report why they did it.
I didn't know how they did it.
Regraded Unclassified
48
- 2 -
H.M.JR: I told Graves if this is the way it goes
out, it has to stop. This idea - "Hereby it is revoked" -
edict from Hitler.
MR. PAUL: Well, that is true of a great many.
MR. SULLIVAN: I wish I had known about it. Have
you (Paul) been talking about this?
MR. PAUL: No, I just heard it two or three days ago.
Sammy Klaus has been working on it. He told me McAneny
was coming in to see you. I told him to give me a report.
H.M.JR: McAneny didn't tell me what it was.
MR. PAUL: It is in connection with some of their
propaganda activities - German.
H.M.JR: It is no way, John, to send out a notice.
MR. SULLIVAN: You can't argue with me about that.
H.M.JR: You inquire about it, will you?
MR. SULLIVAN: Certainly.
H.M.JR: Let's say it is a good organization; let's
say it is all right. Well, then, you know--
MR. SULLIVAN: Even if it is a bad organization,
that is not the way the notice should come out.
H.M.JR: Can you make it retroactive for three years?
MR. PAUL: Make it retroactive for all the years
for which they weren't truly interpreted.
H.M.JR: It smells like Sammy Klaus. He is one of
the most high-handed people we have around here.
MR. PAUL: Who is?
Regraded Unclassified
49
- 3 -
H.M.JR: Klaus.
MR. PAUL: I agree with you. Afraid to let him
loose.
MR. SULLIVAN: Have you been able to keep him
locked up?
MR. PAUL: Awfully hard to keep him locked up.
H.M.JR: Now, Mr. Paul, will you tell me the good
and the bad? We will start with renegotiation, and
then the rest of the tax bill, because this will be my
last chance. I hope to make up my mind and give
advice to you people whether I recommend to the Presi-
dent whether he sign or veto it.
One thing, please, for the record. Mr. Byrnes
called me up this morning and said he had not been able
to contact LaFollette yesterday. He wanted to let me
know that.
MR. PAUL: Something strange happened. There is &
rumor up there on the Hill that he did.
H.M.JR: Why should he call me up this morning to
say, "I just don't want you to think I was rude not to
call you back, but I was not able to reach LaFollette."
I can't see why he should do that.
MR. PAUL: I don't, either.
H.M.JR: Because being successful, I should think
he would want it known he had contacted LaFollette.
Byrnes doesn't usually push his bushel under a light!
MR. PAUL: Under a candle, isn't it?
Let me say first that the total revenue increase
under the bill over present law is two billion one hun-
dred ninety-four million, for a full year of operation.
Regraded Unclassified
50
- 4 -
That is the total increase from which certain
items have to be deducted. That is increased taxes
over present law, imposed after taking account of a
number of decreases, but not after taking account of
Social Security, and not taking account of certain
relief provisions which are not in that total. I
will come to them in a minute.
You asked for the renegotiation changes first. I
think we can dispose of that very quickly by saying that
there is very little left in the bill on the renegotia-
tion front that is objectionable. There was a very
decided reversal of all trends yesterday afternoon.
There are two or three things that are decidedly
objectionable on that front, the principal among them
is the cut-off date under which the renegotiation ex-
pires December 31, 1944, with the power in the Presi-
dent to extend for six months. That is very objection-
able and the President has discussed it specifically
with Byrnes. Byrnes told me he objects to it. It is
bad according to Patterson, among other things, for the
reason that Patterson says that beginning a few months
before the final date of expiration, contractors will
stall so as to get their contracts in after the period
so they won't be renegotiable.
It is objectionable from one standpoint because it
is simply impossible to defend, as long as the war goes
on, at least; the profit that is excessive on one date
is excessive on another date.
H.M.JR: But it reads so that if I sign a contract
with the Government on December 31 of 1944 - can they
renegotiate that contract?
MR. PAUL: Yes, but not if it is on January 2. Of
course, the President has the six months power to extend.
H.M.JR: But at one time it was only renegotiable
for business done through the calendar year.
Regraded Unclassified
51
- 5 -
MR. GASTON: This is business done and not contract
signed.
MR. PAUL: They finally fixed that.
MR. SURREY: No, it is the profits earned prior to the
cut-off date.
MR. GASTON: Earned prior to the cut-off date. No
relation to signing of contract, then.
H.M.JR: Let me ask my question again. Paul answered
one way and you another.
MR. GASTON: That makes Patterson's objection have
more reason, the way Stanley states it.
H.M.JR: If I sign a contract on December 31, 1944,
for business which will be done in 1945--
MR. PAUL: Nothing earned under that contract.
H.M.JR: It is only stuff earned up to the cut-off
date, is that right, unless the President extends it?
MR. SURREY: That is right.
MR. PAUL: He can extend it for only six months.
H.M.JR: That isn't 80 good.
MR. GASTON: The real substantial objection is what
Patterson said, that they will stall work.
MR. PAUL: That is the worst thing left in renego-
tiation.
Now, the worst from the standpoint of taxes - oh,
one more thing about renegotiation, which is not so
objectionable as it was for awhile: Contractors may have
a hearing before the Tax Court. We opposed that and
lost in the House and won in the Senate. The reason
Regraded Unclassified
52
- 6 -
I say it is not so important now is because they did not
put in the provision permitting a review of all the closed
cases of which there are about eight thousand. They just
make that--
H.M.JR: That is finished. They can't reopen those.
MR. PAUL: Can't reopen those. That is one of the
things that happened yesterday.
H.M.JR: Does this thing apply before or after
taxes?
MR. PAUL: They changed that. It is now the way
we wanted it; it applies after taxes.
MR. BELL: It goes to the Tax Court instead of Court
of Claims.
MR. PAUL: It goes before taxes; after taxes is what
we objected to. We didn't want to make it a super excess
profits tax.
H.M.JR: Which is it now, before or after?
MR. PAUL: You get renegotiated before taxes, and
then the tax follows.
MR. BELL: What is left.
MR. PAUL: Yes.
MR. BELL: Did we object to its going through the
Tax Court at all?
MR. PAUL: Our objection was based on the House
bill which gave the right--
MR. BELL: To reopen?
MR. PAUL: Yes.
Regraded Unclassified
53
- 7 -
MR. GASTON: Now only renegotiation cases can go to
the Tax Court if the contractor wants to take it there?
MR. PAUL: But not the cases which have been volun-
tarily closed.
MR. GASTON: No, but only cases they undertake to
renegotiate a man and he doesn't like it - he can go to
the Tax Court. And he wouldn't like it in any case -
he will go to the Tax Court.
H.M.JR: But you do your renegotiation first and
when that is settled you pay your taxes on what is left.
MR. PAUL: Yes. You may not do it first in point
of time, but the impact is first of renegotiation. You
reduce the profits first by renegotiation, then you im-
pose a tax on the reduced amount. That was one of the
things they changed yesterday. They had 8. provision
that we must in renegotiating take into consideration
estimated tax liabilities.
H.M.JR: But none of our people were in the room
so we don't really know what happened?
MR. PAUL: You mean politically? We know the results
but we don't know what moved them.
MR. SURREY: Nobody was in the room.
MR. PAUL: Not even the clerk.
MR. SULLIVAN: Now, the practical result of this,
Randolph, is that the renegotiation boards can't be so
tough. The contractor will always say, "Well, if in-
stead of taking back two hundred thousand, you only take
back one hundred and fifty, I will settle; otherwise, I
will go to the Tax Court.
MR. GASTON: Court of Claims, isn't it?
Regraded Unclassified
54
- 8 -
MR. PAUL: Yes, back to the Tax Court. That is
right, John.
MR. SULLIVAN: Of course, your next three or four
months will show how dangerous that is.
MR. PAUL: Yes, there isn't any excuse for it.
However, they did wipe out a number of objectionable
amendments such as the exemption of standard 00 mmercial
articles, such as the exemption which persisted up right
to the end for a certain machine tool people. They put
in some office-supply exemption which is perfectly in-
noxious, Patterson says.
Now, on the tax front, a great many of the most
objectionable provisions were eliminated at the last
moment, particularly a hand-out to the railroads, which
were going to be permitted to deduct losses on securities
they bought back before 1920, and which have now gone
way down in value. They were going to charge those
losses, in effect, to the Government - ninety-five percent.
That was 8 lot of money. It was five hundred million to
seven hundred million dollars loss of revenue.
They cut out another provision to which we had
violent objection, that losses sustained in the period
from '38 to '42 should be ordinary losses. That meant a
lot of money. That was what Ballantine was backing.
They cut out a provision which gave special depletion
treatment, increasing the income on which the percentage
depletion was computed to mining companies where they were
integrated like U.S. Steel. They cut that out by limit-
ing the relief to gold and quicksilver.
However, there remain a number of provisions in the
bill for which there is no excuse. One of the principal
ones from the standpoint of revenue is a provision per-
mitting companies reorganized in insolvency, bankruptcy
proceedings, to have a basis - to have invested capital
and the depreciation basis of the old company which
failed, although that capital was created by stockholder
Regraded Unclassified
55
- 9 -
who were wiped out in the bankruptcy. And the company
goes to the bondholders, and the bondholders, in many
cases, just bought up the bonds on the speculative bond
market. They had that provision until the very end,
going back to 1940. At the end they got scared and made
it begin in 1943, after December 31, 1942. The total
loss on that provision is eighty-four million a year -
fifty million for back years.
They have a provision permitting people who cut
timber in an ordinary business, year by year, to have a
capital gain rate. That costs us about twenty-five
million. That is Lovell Parker's provision and it is a
wonderful thing for Mr. Weyerhauser.
MR. GASTON: They depreciate the capital?
MR. PAUL: Treat it as a sale of capital. It is
growing timber and annual operation.
MR. GASTON: Like crops?
MR. PAUL: That is right. They have a small provi-
sion with respect to the airlines.
(The Secretary held a telephone conversation with
Mr. Harold Graves, as follows:)
Regraded Unclassified
56
February 1, 1944
3:45 p.m.
Operator:
There you are.
HMJr:
Hello.
Harold
Graves:
I'm calling back about this Carl Schurz
thing.
HMJr:
Yeah.
G:
I find that this peremptory letter
HMJr:
Yeah.
G:
was sent out to that organization on the
recommendation of Mr. Klaus.
HMJr:
Who's Klaus?
G:
Sam Klaus.
HMJr:
Ain't heard of him.
G:
(Laughs) He's an old friend of ours.
HMJr:
Oh.
G:
And approved by Phil Wenchel
HMJr:
Yeah.
G:
and with the knowledge, at least, of Mr.
Paul. This -- this outfit apparently is
caught in some Pro-Nazi activity which Mr.
Klaus -- I just talked with him
HMJr:
Yeah.
G:
says was thoroughly established by
investigation.
HMJr:
Yeah.
G:
And that accounts for the peremptory tone of
this particular letter.
HMJr:
Yeah.
Regraded Unclassified
57
- 2 -
G:
It is not our custom at all to send that kind
of a letter in a case of this sort.
HMJr:
Well, I still say that they are entitled to a
hearing under the American system.
G:
Well, they were given a hearing.
HMJr:
They were?
G:
Yeah, I think -- I think maybe we ought to get
from Klaus a report of just what did happen in
this case.
HMJr:
Well, if you can get one from Klaus that I can
understand.
G:
All right. Suppose I try.
HMJr:
Yeah.
G:
In the meantime I, of course, I'm going to be very
careful of anything I say to Mr. McAneny.
HMJr:
Yeah.
G:
Whom I have not yet seen but who is waiting now
to see me.
HMJr:
Right.
G:
But I thought that I had better tell you why it
was.
HMJr:
All right.
G:
And that we acted that way in this particular
case before I see this fellow.
HMJr:
Have you looked at other revocations under Section
101?
G:
No, I haven't. I have just this one in front of me,
but I have the statement from our people that this
is not our customary operation that We always do give.
HMJr:
Well, you might take a look at it yourself.
G:
Yes, sir, I will.
Regraded Unclassified
58
- 3 -
HMJr:
But talking for McAneny -- I mean, I've known
him all my life.
G:
Yes.
HMJr:
And I'd be the most surprised person in the
world if he had anything to do with any. Pro-Nazi
proclivities.
G:
Yeah, he -- maybe he doesn't have any knowledge
of the particular things that this client has
evidently been a-doing.
HMJr:
Have you had a look at it?
G:
No, I haven't -- I have sent for the file. I
haven't got it yet. I thought I'd like to talk
with you before I talk with Mr. McAneny.
HMJr:
Oh, yeah. But you're going to see him now?
G:
Yeah, I'm going to see him now.
HMJr:
Okay.
G:
Yes, sir.
HMJr:
Thank you.
G:
You're welcome.
Regraded Unclassified
59
- 10 -
MR.GASTON: Is this George McAneny?
H.M.JR: Yes. He used to be under Mitchell. He
was Comptroller of something - that young crowd that
went in in those days. It was an excellent crowd.
MR. PAUL: I think we ought to hear Sammy on this,
before this is condemned. I did not know about it until
after the event, but he has been working under Wenchel
and he may have very good reasons. He may have given a
full hearing. I have & report on my desk now.
H.M.JR: Supposing you and John have a look at it.
MR. PAUL: All right.
They have & provision which doesn't mean much in
revenue loss but is thoroughly objectionable in principle,
giving certain favored treatment to the airlines.
H.M.JR: In or out - giving the airlines treatment?
MR. PAUL: It is in.
H.M.JR: It gives them special treatment?
MR. PAUL: Yes, gives a company like Eastern Airlines
a million dollars relief - American Airlines a considerable
relief.
They have a provision for which there is no excuse
whatever, strongly pressed by Disney, giving special
excess profits tax relief to the owners of gas pipelines.
It is all put in there, giving the whole industry relief,
because 8. couple of pipelines in Oklahoma are having
tough financing problems.
Now, those are examples; those are some of the worst
provisions in principle.
However, the greatest loss in receipts is caused by
the elimination of the Social Security automatic rate,
keeping the one percent instead of two percent as it was
supposed to go, beginning January 1. That costs a billion
one hundred and twenty million.
Regraded Unclassified
60
- 11 -
There are two hundred million dollars of objection-
able relief provisions.
H.M.JR: How much?
MR. PAUL: Two hundred million, plus the Social Security.
That means there are some relief provisions which we recom-
mended that I am not counting. So if you add the Social
Security and the objectionable relief provisions, you have
about one billion three hundred and fifty million to apply
against your two billion one hundred and ninety-four mil-
lion. So we haven't very much of a relief bill here. Per-
haps the greatest objection isn't in terms of money, however.
I think Stanley will agree with the statement that
never before have the special interests, special pressure
groups, had such influence and almost put over not only
two hundred million dollars of relief, but a billion
dollars or more of relief. Some of the big ones just
missed in conference at the last minute.
MR. SULLIVAN: What was the loss from the relief pro-
visions we recommended, Randolph?
MR. PAUL: Very small, it would be, for the recommended
or agreed to. For instance, we recommended an increase in
the specific exemption, five thousand to ten thousand dollars,
the excess profits tax. That was to benefit small companies.
That cost one hundred and twenty-nine million. The Victory
Tax provision cost sixty-one. We didn't object to the second
windfall elimination which cost about three million - no,
that is not three - that reduced calendar year '43 liabili-
ties by two hundred million. This liability was payable
in four annual installments, 80 it would have extended over
four years. All we did was tell them if they were going
to do it, for heaven's sake do it now before we got B. lot
of the work and got the returns cluttered up with it.
MR. SULLIVAN: I think it has a bearing on the deci-
sion the Secretary has to make. If we recommended or
agreed to relief provisions that lose as much as the re-
lief provisions we objected to, exclusive of Social
Security, I think that puts us in a rather different
position on recommending the veto.
Regraded Unclassified
61
- 12 -
MR. PAUL: I don't think so, John. For instance,
this specific exemption provision was agreed to by the
Joint Staff. There was no contest particularly on it.
It had been passed last year by one of the Houses. It
wasn't even controversial.
MR. SULLIVAN: No, but I am worrying about their
argument, saying, "Would you object to two hundred
million of revenue you lost on relief provisions that
the Treasury was opposed to, but there is another two
hundred million."
MR. PAUL: I don't think you can approach it quanti-
tatively that way.
MR. GASTON: The answer has to be that one is equitable
and one inequitable.
MR. PAUL: I come to this conclusion. I have a
little memorandum here for you, but I come to this con-
clusion in my own mind, that the bill should be signed,
but that it should not be signed--I stated that incorrectly.
The bill should not be vetoed, but whether it is not
signed or signed, you can take either course, because
we have plenty of time. We won't lose any excise by not
signing it.
H.M.JR: Why not?
MR. PAUL: Because as long as the bill becomes a
law ten days before March 1, we won't lose any excises.
The ten day provision is in it. The bill will undoubtedly
be passed and on the President's desk in order to give
ten days before that ten days. So the President will
have the option of not signing, or signing, if he doesn't
want to veto. But I think he ought to give some sort of
a message with that, not that I think it will do any
immediate good in the sense of making them go to work on
a revenue bill, but I think he ought to keep his record
straight. I think it is the right thing to do, because
the bill doesn't meet any of the problems of revenue or
inflation, and because, instead of doing that, it passes
Regraded Unclassified
62
- 13 -
the tax burden on from the corporations of today to the
returning soldiers of tomorrow.
On social security grounds alone, I think the President
has got to say something. They are doing all they can to
gut social security, and I think on this other ground
of special pressure groups, right in line with what the
President said in his State of the Union Message and
the Budget Message, that you have got to register some
dissent from the bill, whether he signs it or allows it
to become a law without his signature. He could mention,
of course, this renegotiation cutoff.
MR. GASTON: He could say in his message--
MR. PAUL: Now, the argument against it is, will
a statement of any kind by the President adversely affect
Treasury relationships for purposes of the coming simpli-
fication bill, if any--technical or simplification bill.
I don't believe it will. I can't help but think that
where we got the most on this bill are the places where
we fought the hardest. But there is plenty of room for
a difference of opinion there. That is about the picture.
MR. GASTON: The President could well say in his
message that he proposes to extend the cutoff date,
couldn't he? That would give them as long notice as
possible that they can't stall and make extra profits.
MR. PAUL: I think that would be a mistake, Herb,
for him to assume the absence of competitive conditions
a year hence. I think he would have to make that finding
of fact at that time.
H.M.JR: They would immediately say, "Well, he is
doing that so he can run for a fourth term and say the
war is going to last."
MR. PAUL: It would be a pre-judging of the economic
conditions.
MR. SULLIVAN: There will be plenty of time to stop
the stalling, Herb, if he does it around the tenth of
November.
Regraded Unclassified
63
- 14 -
H.M.JR: I think it would be bad.
MR. GASTON: He doesn't have to prophesy the end of
the war.
H.M.JR: Well, let me just go around the room now.
MR. BELL: Well, I didn't get it when Paul went
over the in's and out's, the important items, but I
would like to see the bill approved by the President
if there aren't too many objectionable things in there.
H.M.JR: You mean signed?
MR. BELL: Yes, signed. I can't quite weigh this
contract thing, just how important that is from the stand-
point of the War Department at this time.
MR. PAUL: Well, they objected very much to it; so
did the President, as a matter of fact. But when you
say "sign," Dan, you have only answered one question.
You have answered the question as to whether you think
it ought to be signed.
MR. BELL: Or vetoed.
MR. PAUL: Do you think there ought to be a statement
with the signature?
MR. BELL: I wouldn't mind that. I should think
maybe there might be a statement with it, but I think
the President ought to approve it, if it is going to
become a law.
MR. PAUL: That would have the virtue of getting it
moving, getting everything moving faster.
MR. WHITE: I think the bill ought to be vetoed by
the President. I think that is what the President is for,
is to veto bad legislation. I think that is bad legislation,
and it will put Congress on the spot. I think a veto
message would obtain far more publicity than a message
accompanying approval, and I think it would be popular,
Regraded Unclassified
64
- 15 -
except in those groups with whom he is very unpopular
anyhow. I think it might well bring a better revenue
bill. If it didn't, it would certainly serve to bring
many of the Congressmen and Senators in disfavor, which
is in itself 8. helpful objective. I am in favor of
having the President veto it. I can't see what dangers
to the war effort come from that, aside from the very
unfortunate loss of current revenue until such time as
they pass the bill. These bad features that are once
incorporated, you know, stick. It is almost impossible
to get them out. It is not a question of just legislating
for one year.
Certainly, the prevention of the accumulation of
additional revenue from social security could never be
better justified than it is at this time or more desirable
than it is at this time. I think there are enough bad
features in the bill, and that the absence of social
security and the bad features in the renegotiation, plus
the fact that the whole bill is bad in that it yields
a smaller amount of revenue, in my mind, justifies the
positive veto with a very strong statement.
MR. PAUL: I have a draft of a strong statement here.
H.M.JR: For what?
MR. PAUL: We have been working two or three days.
H.M.JR: Together?
MR. PAUL: Either with a veto or with a non-signature
or with a signature.
MR. SULLIVAN: I am opposed to a veto. I think that
the sins of that bill are the sins of omission, rather
than commission. Whether or not he signs it--I am not
entirely sure, but I think I would be for his signing it.
But I see very little that as a practical matter we can
gain from vetoing.
MR. SURREY: I think I would be in favor of his
signing it. In other words, if he is not going to veto
Regraded Unclassified
65
- 16 -
I think he could sign it. But on renegotiation, I don't
think there are grounds to veto.
H.M.JR: You don't think he should veto?
MR. SURREY: I don't think he should, unless he
feels strongly enough about the social security. He
doesn't have grounds to veto it on renegotiation.
MR. BELL: How about the relief provisions? Are
they 80 objectionable?
MR. SURREY: Well, here is the advantage there,
whether it carries to the extent of a veto message or
merely a strong message accompanying his signature, the
whole caliber of tax legislation has been steadily drop-
ping. It became, with respect to the committees, pretty
much of a log-rolling process, and amendments are going
in for companies and for industries solely because they
want to favor each other. The tone is lower, and lower,
and lower, and the Treasury is the only one that calls
attention to it. Well, you can't win every time on these
matters. No one else is helping us on the thing, and
the President should do something to call attention to
that, because it is becoming very disgraceful.
MR. WHITE: This statement of yours (Paul's) is
very good. With some little changes it would be very
salutary.
MR. SMITH: I don't think you can overlook the fact
that this is 8. political year and anything he does is
going to be made political capital of. I think if he
vetoes the bill, the obvious answer that the opposition
can sell very widely is that you went after the ten bil-
lion dollars and they wouldn't give it to you, so you
don't want anything. All this business about our needing
money to finance the war just goes down the drain, I
mean, the whole reason for your wanting money now. I
think it can be made to look as though it does.
I don't think he should veto it, because it would
create a lot of excitement and make him look more dic-
tatorial. I don't think he should sign it, because if
Regraded Unclassified
66
- 17 -
he signs it, then any message that goes along with it
is sheer kibitzing. I should think he would let it
become a law and have a humdinger of & speech built
around the "gimme" boys. I think he can make political
capital of it and be right at the same time. If he
doesn't the other side would.
MR. PAUL: I would like to add a footnote to what
I said. If I lean in my doubt either way, I lean toward
Harry's view, that it ought to be vetoed. That is what
I think is the right thing to do, far apart from all the
practical expedient arguments.
H.M.JR: Last but not least, Herbert.
MR. GASTON: Last and least. I think whatever
the President does, he should not take the course of
letting it become a law without signature. I think
that is a feeble, pointless thing to do. He should
either sign or veto it. I am in favor of a veto.
MR. PAUL: If you have time, I would like to read
a draft of the message here. It gives a reason. It gives
better than one can do offhand, the reasons, what is
wrong with the bill.
MR. BELL: Let me ask you this before you do that:
Could the President give out this stinging statement and
say, "Now, I am not going to sign this bill; it is going
to lay here, and Congress has the opportunity of recalling
it"? Could that be done?
MR. GASTON: No.
MR. BELL: Has that ever been done?
MR. SMITH: And he asks them to get busy?
MR. PAUL: They will not do that.
I would like to get this before you if you have
time. Of course, this is & very serious matter, and
we have worked 8 couple of days. I am not speaking for
Regraded Unclassified
67
- 18 -
Rough droft
the tone of this, but for the context. (Reading of
only.
not
draft of message for the President:) "I am returning
furnished
the Revenue Bill of 1944 to the Congress without my
being
signature. I am aware that no previous tax bill in
modern times has been vetoed. But this bill is so
tragically unrealistic as a wartime measure that I can
take no other course.
"A realistic bill would have provided more than
$10 billion in added revenue. This bill offers less
than $
billion. A realistic bill would have
plugged existing tax loopholes. This bill opens new
ones. A realistic bill would have simplified our tax
laws. This bill complicates them.
"I cannot reconcile its feeble tax increases with
the gigantic military offensives that lie directly ahead.
I find in the bill no real support for our program to
stabilize the cost of living. I find in it no assurance
to our fighting men and women that wewill tax ourselves
to the hilt now instead of confronting them with the
costs of the war upon their return to civilian life.
"This bill is 8 vote of no confidence in the American
people. I am sure that they are willing, able, even
anxious to bear the burdens which this bill refuses to
impose. They recognize taxes as an immediate and direct
instrument for bringing their fighting sons and daughters
back from the battlefronts more speedily.
"Incredible as it seems, this bill gives more emphasis
to tax relief than to tax revenue. It makes unpardonable
tax concessions to self-seeking special-interest groups.
It cancels $1.4 billion of payroll tax increases already
scheduled by law.
"It was generally agreed, and Chairman Doughton of
the Committee on Ways and Means announced, that passage
of a new revenue measure was not to be delayed by con-
sideration of relief provisions and technical amendments.
But selfish pleas for tax concessions prevailed, and the
agreement was ignored. As the revenue program was presented
to the Congressional committees, it was dedicated squarely
Regraded Unclassified
68
- 19 -
and solely to the welfare of the American citizen. As
it comes to my desk in the form of H. R. 3687, it is
bulging with special privilege. The general welfare of
the American citizen has been forgotten in the scramble
to grant favors to the special interests.
"The mining interests are granted outrageously
excessive allowances under the odious percentage depletion
provisions. The lumber interests are granted the right
to treat income from timber cutting and selling as capital
gains taxable at 25 percent but are permitted to deduct
losses from the same operations at the regular rate of
40 percent. Speculators in securities of bankrupt com-
panies are unjustly enriched by provisions inflating
the capital values of reorganized corporations for tax
purposes. Commercial air lines are granted an unwarranted
enlargement of the tax subsidy on their air mail contracts."
MR. BELL: After we have kept them for twenty years.
MR. PAUL: "A considerable part of the war profits
of the favored groups will be insulated from war taxes
by these concessions.
million dollars of taxes
will be lost annually. In addition, there will be a
cumulative loss of more than $
million because
many of the reliefs are granted retroactively.
"It is pertinent to ask who will bear the burdens
of which profiteering corporations are being relieved.
Insofar as the loss is not made up by other war taxes,
the burdens will be shifted to the shoulders of our return-
ing service men and women. Insofar as this bill does
increase taxes, it relies chiefly on excises bearing
heavily on the lower income groups.
"The Revenue Bill of 1944 fails the American taxpayer
in other respects. He has been promised almost unanimously
that tax laws will be drastically simplified. This bill
in no sense lives up to that promise. It refuses to
take the most obvious step toward simplifying taxes for
the masses of taxpayers. That step would be to absorb
the clumsy Victory tax into the regular income tax. But
Regraded Unclassified
69
- 20 -
for fear of dropping from the tax rolls those taxpayers
who are at the bottom of the income scale, it retains
the Victory tax as a separate tax. I cannot reconcile
this unwillingness to forego a modest sum from our
poorest taxpayers with the ready response to pressures
of special-interest groups.
"In view of our pressing revenue needs, it is un-
thinkable that tax increases already provided by law
should be set aside. Yet, in freezing social security
payroll rates the bill before me would do precisely this.
It would undermine the soundness of the social security
system. It would wipe out $1.4 billion annually of
expected payroll tax revenues. In other words, a veto
of this bill, if sustained, will provide almost as much
revenue as its enactment.'
H.M.JR: I think it is an excellent statement.
MR. PAUL: There are some things left out.
MR. WHITE: The brevity of it is in its favor.
H.M.JR: If I may say what I think, it is this:
I do not think that the President should veto the bill.
I wouldn't want to advise him whether he should let it
become a law through not signing it or through signing it.
I think that is a decision which he can make himself.
But, before I go away, I would like that--you boys could
leave it here, and I would be glad to say, "Mr. President,
we feel here that you should let this bill become a law.
See? That doesn't say how, you see. I would like to
leave that open. But in doing so, we would like to offer
some suggestions. "We have the following statement for
you to make,'
MR. PAUL: I would like to review this just a little
bit.
H.M.JR: Sure. I would like to have it circulated
among this group.
Regraded Unclassified
70
- 21 -
MR. GASTON: From that point of view; if he is going
to allow the bill to become law, what he has there is
8 justification for a veto.
MR. PAUL: That is all right. We started to do it.
H.M.JR: I used the words, "Let the bill become 8
law," so that leaves it open. I don't want to say
whether he should sign it or leave it.
MR. WHITE: You can't issue that statement and let
it become a law.
MR. SULLIVAN: You may have to have two different
drafts, depending on which way he permits it to become
8 law.
MR. PAUL: There is no use in making a statement
unless you make a strong one.
MR. WHITE: If you make a strong one like that, he
is not justified in letting it become a law
H.M.JR: Other than the first paragraph, I don't
see where it has to be changed.
MR. PAUL: There are changes. For instance, this
doesn't mention some of the things it didn't do.
H.M.JR: Anyway, if you would make that the first
order of business, would you please, getting this in shape?
MR. PAUL: Do you want it by tomorrow?
H.M.JR: I don't know. I can't tell.
MR. PAUL: We had better have something by tomorrow.
H.M.JR: Yes, I would like to have it by tomorrow,
but I can t guarantee that I won't be sitting here Friday.
I am waiting for the President to make up his mind who
will be director of this refugee committee.
Regraded Unclassified
71
- 22 -
MR. PAUL: I will have something tomorrow, and
approach it further, if necessary.
H.M.JR: But I would like to have it circulated
among this group.
MR. PAUL: I just got this this morning.
H.M.JR: I understand. Let Roy in on it, too.
MR. PAUL: Roy has been working on it, Roy, Heller,
and myself.
H.M.JR: It is an excellent statement.
MR. SULLIVAN: I have one question, Mr. Secretary.
We have to get the estimated declarations. They have
to start printing those right away. We propose to grant
everybody an extension until April 15 to file their
estimated declaration and pay their first quarterly
installment. We think we will be very lucky if they
are printed and distributed, the fifty million copies
we are getting out, by April 1. We are confident that
we can't have them by March 15, but before it goes, I
wanted you to know that the quarterly payments will
be extended from March 15 to April 15.
MR. PAUL: I told Bell about that some time ago.
H.M.JR: I would allow myself enough time. I would
rather go to May 1, if necessary.
MR. SULLIVAN: The difficulty on that is, if we
go to April 15, they will only have two months in which
to save up for the second quarterly payment.
H.M.JR: If you can do it April 15, fine.
MR. SULLIVAN: We think we can.
MR. BELL: You have just as much time as if you had
started on January 1.
MR. PAUL: Yes, just about.
Regraded Unclassified
72
February 1, 1944.
Memorandum
TO:
Secretary Morgenthau
FROM: Mr. Gaston
In & speech at Arthurdale, West Virginia, on May 27,
1938, the President took occasion to announce that he would
neither sign nor veto the pending tax bill, the Revenue
Act of 1938, but that instead he would take a course novel
for him and would allow the bill to become law without his
approval. The ten day period allowed the President for
approval or disapproval of the Act expired at midnight that
night.
The President explained that he was taking this course
because the bill contai ned desirable features that ought to
become law, but contained other features wholly undesirable
to which he wished to call the people's attention by this
course of action. The features of the bill which he par-
ticularly criticized were:
(1) Reduction of the undistributed profits tax to
2-1/2 per cent;
(2) Taxation of long term capital gains at the flat
rate of 15 per cent.
With respect to the latter feature he said: "Some
people who have favored this abandonment of principle have
justified their position on the ground that one has to
abandon principles once in 8. while when there is an emergency
and that the abandonment of this particular principle will
encourage many rich men to take 8. risk with their capital
and invest it in new enterprise.' After arguing that this
position was unsound, the President said: "It will be noted
that in this analysis of this abandonment of principle I
have attacked no person. The President added that this
provision of the bill "helps the very few, therefore, at the
expense of the many. "
Regraded Unclassified
73
- 2 -
Pat Harrison did not conceal his resentment at the
President's action. The New York Times of May 28 said:
"As leader of the conservative group in the
Senate, Mr. Harrison was obviously deeply cut by
the speech. He had headed the Senate movement
which rejected completely the tax schedules on
capital gains and undistributed profits written
by Administration leaders into the Tax Bill in the
House.
"By compromising on the measure as it went to
the White House, this group expressed the view at
the time that it had taken a 'long step backward'
in order to maintain Democratic unity in Congress
and avoid the appearance of repudiating the President."
The President's action with respect to the Revenue
Act of 1938 could of course be made a precedent for action
on the Revenue Act of 1944 if the President wished to call
attention to the defects of the bill but at the same time
considered the small net gain in revenue worth having.
wer
Regraded Unclassified
74
FOR THE PRESS
May 27, 1938
CONFIDENTIAL UNTIL RELEASED
CAUTION: This address of the President to be
delivered at Arthurdale, West Virginia, MUST BE HELD
in strictest confidence until released for publication
in the afternoon editions of newspapers of today, May
twenty-seventh,
RELEASE is autematic, at 2:00 (two) e'olock, P, M.,
EASTERN STANDARD TIME.
Care must be exercised to prevent premature publica-
tion.
STEPHEN EARLY
Secretary to the President
At last after many attempts I have succeeded in coming
to Arthurdale -- and I greet you as friends because you are Mrs.
Roosevolt's personal friends and because I have heard so much
about you.
Much has been written about you good people, about the
conditions of life in certain towns in this part of the world and
about what the government has done here at Arthurdale. The na-
tion has heard about Scott's Run with its very poor conditions of
life, and the nation has heard about Arthurdale with its vastly
improved conditions of life. But I think : voice the thoughts
of you who live here when I say to the country over the radio that
about the last thing you would want, would to be publicized as
some rare and special type of Americans.
Lot me put it this way and I think and hope that you
will agree with no when I say:
In 1933 the whole nation know that it faced a orisis
in oconomic conditions but the nation did not realize that it
faced a erisia in social conditions. If anyone were to ask ne
what is the outstanding contribution that has been made to American
life in the past five years, I would say without hesitation that it
10 the awakening of the social conscience of America.
As one part, and only one part, of the effort of your
government to improve social conditions, ve undertook in dozens of
places scattored over almost every part of the country, to set up,
with the cooperation of the local people themselves, projects to
provide botter homes, B. botter chance to raise foodstuffs, and a
better chance to make both ends meet in maintaining a reasonably
decont standard of life through the passing years.
Many difforent types of projects wore undertaken -- some
of them in wholly rural sections, nome in cities, some in suburbs,
some for industrial workers, some for miners, some, like Arthur-
dale, a combination of industry and farming. Those projects repre-
sont something now and because we in America had no experience along
these lines, there were some failures -- not a complete failure in
the case of any given project, but partial failures due to bad
guesses on coonomic subjects like new industries or lack of markets.
On the whole, however, the percentago of good guossos in
the average of these projects has been extraordinarily high, and for
this success the principal part of the credit properly should go to
the indi vidual families who, themselves, have como to live in these
now communities.
Regraded Unclassified
75
-2-
The lessons we have all learned will save n. hundred
times their cost in dollars as fast as government or private
capital -- or as I hope, both -- go on with the inevitable task
of improving living conditions throughout the country and help-
ing Americans to live as modern science has made it possible for
them to live, The extra cost of pioneering ventures such as
this represents development cost which we justifiably charge off
as the inevitable cost of all progress -- just as we have in the
past charged off the huge government share in the development
costs of the railroads, the cables, the airplanes, and the improved
highways that made the automobile possible. But what is equally
important to me, the lessons learned from this first bold govern-
ment venture will save human lives and human happiness as well as
dollars in this march of progress ahead of us,
This is a high school graduation and I am speaking just
as much to you who graduate today as to your parents and your grown-
up friends. You are the citizens of tomorrow -- not just this
graduating class but thousands of other high school graduating classes
in every state of the Union,
When you, today's graduates, were of grade school age we,
your elders in the United States, were asleep at the switch and your
government also was asleep at the switch. For many years, other
nations of the world were giving serious consideration to and taking
definite action on social problems while we were pushing them aside
with the Idea that some day we would get around to meeting them.
We had heard of the ideals of ending child labor, of
initiating a five-day week, of shortening working hours, of putting
a floor under wages, of clearing slums, of bringing electricity into
homes, and of giving families the chance to build or buy a home on
easy terms, of starting old-age pensions and unemployment insurance.
But all these things were in the greater part a beautiful dream --
a dream until government, five years ago, tired of weiting, stopped
in and started to make the dreams come true,
Government has done little more than to start the ball
rolling. Government knows how much more there remains to be done.
But Government hopes, now that it has taken the first risks and
shown the way, that private capital and business mon will see how
much it is to their own advantage -- and profit -- to keep the ball
rolling -- and keep it rolling so wall that the inovitable wider
improvement in American social conditions will come about in normal
course of privute enterprise without compelling Government to use
large amounts of tuxpayers' money to koep America up to date,
Many sincere people -- good citizens with influence and
money -- have come to West Virginia mining towns in the past two
or three years, to sue the conditions under which American families
lived, conditions under which, unfortunately, many. American families
still live. Many of these people have come to sea me after their
visit to Scott's Run or similar places und have expressed to no
their surprise and their horror at things they have seen, They
have said: "I did not imagine that such conditions could exist in
the United States."
They have wanted to help at the particular spot they
have seen -- but the lesson which I have found it difficult to got
across to them had been the fact that they have seen only one spot
or two spota -- thy, single spote on a map of the United States,
a map which is covered over with hundreds and even thousands of
similar spots. Un-American standards exist by no means in a few
coal towns only. They exist in almost every industrial community
and they exist in very many of the farming counties of the country,
Regraded Unclassified
76
-3-
Now of course, pending the time that private capital
and private enterprise will take up the burden, the money Govern-
ment thus spends to encourage the nation to live better --
especially that part of the nation which most needs it -- is
taxpayers' money-
Two questions, therefore, arise: "Is that spending
justified from the point of view of the individual taxpayer and
how should the money be raised".
Bo far as the taxpayer's individual interest is concerned,
I always look at it this way.
Taxes, local and state and federal combined, are nowhere
near as high in this country as they are in any other Great nation
that pretends to be up to date. If I were a business man making
and hoping to continue to make good profits, I would remind myself
as I paid my income tax, moderate by the standards of other nations,
that the most important factor in the kind of an active economic
life in which profits can be made, is people -- able, alert,
competent and up-to-date people -- to produce and to consume.
Money invested to make and keep the people of this nation that
kind of people is therefore a good business investment.
And if I were the same man thinking about inheritance
taxes and what I could leave to my children, I would say to myself
that to leave them a living in a nation of strong and able men
and women is to leave them 6 better heritage of security than B.
few thousand dollars Saved on an inheritance tax.
Now, how should taxes be paid?
For a great many years, the Nation as a whole has
accepted the principle that taxes ought to be paid by individuals
in accordance with their capacity to pay. To put It another way,
it has meant B. graduated tax on a man's increase in wealth. For
instance, B. poor man or poor family whose increase in wealth in
a given year is below a certain August 24ys no direct Federal
taxes at all; when the family gains more than $2,500 in 8 year
the family pays EL small percentage on these gains.
As the gains get still larger, the percentage of the
tax goes up so that when B. family's wealth increases to say
$100,000 & year, they have to pay a. third of it to the Federal
Government. In the case of still richer people, they may have
to pay more than half of their large incomes to the State and
Federal governments.
Last week the Congress passed a new tax bill. It con-
tained many good features -- improvements in tax administration,
the elimination of a number of nuisance taxes on articles in
common use, the lightening of the tax burden on the small corpo-
ration as I recommended to the Congress last Fall. I hope that
these changes made by this tax bill may be helpful to business
and that this belief may, in itself, be a factor in the revival
of business enterprise.
But, on the other side of the ledger, I cannot help but
regret that two very fundamental principles of government must
once more be called to the attention of the public.
Both of them, stripped of every attempt to confuse, are
extraordinarily simple and can be understood by every citizen.
In 1936 many large corporations, especially those owned
or controlled by a comparatively small number of very rich stock-
holders were in the habit of failing to declare dividends they had
earned. Thus their stockholders were in 6. position to leave the
profits their money had made in the controlled corporation --
paying the government on these profits only the normal corporation
tax of from ten to fifteen percent. Thus, these stockholders
avoided paying a personal income tax at as rate which in many cases
would have involved a tax payment of fifty percent or even higher
because the stockholders were in what is known as the upper
brackets of the personal income tax.
Regraded Unclassified
77
- 4
The Treasury Department found many instances of closely
held corporations which, starting with the comparatively modest
capital of several million dollars had, over a period of years
grown into corporations worth several hundreds of millions of
dollars without ever declaring a dividend to their stockholders.
This meant a definite, though of course strictly legal, device by
which these stockholders greutly increased their wealth year by
year without having to pay to the government more than a normal
corporation tax, thus escaping very large sums of personal in-
come tax payments.
The Revenue Act of 1936 sought to end this serious loop-
hole.
In principle our objectivo was right but in practice the
Act as finally worked out in the Senate undoubtedly did prevent
many small corporations from normal and reasonable business expan-
sion, from building up adequate surpluses, or from paying off old
debts.
The tax bill this year sought to get rid of these in-
quitable features but to retain at the same time the principle
of stopping tax avoidance. As finally passed, the bill retains
that principle but the penalty for withholding dividends to stock-
holders is 50 amall -- only two and EL half per cent at the most -
that it is doubtful whether it will wholly eliminate the old tax
avoidance practices of the past.
It is true that the bill seeks to strengthen the auth-
ority of the government to not against companies which clearly
seek to avoid surtaxes for their stockholders by failing to de-
clare dividends out of their profits; and I hope that this new
provision, together with the recent favorable docision of the
Supreme Court in interpreting the prior law, will retard the
revival of the old evil. It seems to as that it 16 the definite
duty and interest of the public and of the Legialative and Execu-
tive branches of the government to watch very closely to see what
happens during the coming year.
We must always remember that this old method of greatly
increasing private fortunes through the withholding of corporate
dividends was open and useful only to those citizens who already
had wealth large enough to control those large corporations --
people whose personal income vas already large enough to put them
in the higher surtax brackets.
The position of the Administration is, therefore, this:
No are delighted to remove any existing barriers against
every little business in the Nation which is seeking to set itsolf
squarely on its own feet; seeking to pay off its debts and seek-
ing to make a rensonable profit; but the Administration does not
went large closely held corporations muking large profits to be
used as 0 vehicle by the small number of their owners in order to
avoid legitimate income taxes.
For a number of years it has been recognized that this
progressive taxation of wealth realistically should apply not
only to salaries and dividends and bond coupons but also to
other forms of woolth such as increase in one's capital by soll-
ing any form of property at a profit.
This now bill wholly eliminates the progressive tax
principle with respect to those capital profits: it taxes emall
cepital profits and large capital profits at exactly the same rate.
Regraded Unclassified
78
4
In other words, if you or I sell stocks, which
wo have held for a. few years, at a profit of, let us any,
five thousand dollars, we have to pay a tax of fifteen per
dent on that profit; wherens, the man who has made a profit
of five hundred thousand dollars on stocks he has owned is
required, under this new bill, to pay a tax of only fifteen
per cent, just as you and I would Nobody, by any stretch
of the imagination, can say that this new;provision maintaine
the principle of payment in proportion to ability to pay.
Some people who have favored this abandonment of
principle have justified their position on the ground that
one has to abandon principles once in & while when there is
as morgenty and that the abandonment of this particular
principle will encourage many rich nun to take a risk with
their cupital and invest it in new enterprises.
But this school of thought finds it difficult to
answor the inct that almost all -- about vighty per cent of
all orpital gaina reported -- are profits mado in the stock-
markst ... profits made not by developing now companies but by
buying stocks of old companies low and selling them high, or
by the still possible method of selling stocks short -- selling
stocks you do not own -- and then buying them in at a lower
prico.
The abundonment of the principle of progressive tax
payments in accordance with capacity to pay may encourage e.
mall Amount of capital to go into new productive enterprises
but, chiefly, 1t will help those who make largo profits in
buying and solling existing stocks.
New productive onterprise is not created by the buy-
inc of stocks of esteblished companies when they are low and
selling them when they are high. I should like to son a revision
of our tax lows which would rually encourage now unterprise and
now investment and the undertaking by private capital of projects
like this that the Government has undertakon hero at Arthurdale.
But there is no assurance that untaxed savings will E° into such
now investment 0.* now enterpriso. They may be hoarded or lost in
the inflution or doflation that occurs in the shuffling about of
existing invustments.
To should adopt tax policios which will oncourage men
to winture and to build now productive worlth. Unless somothing
is added to the combined woulth of the nation, one man's capital
gain say be nothing noru than another man's capital loss.
It vill by noted that in this analysis of this hbandon-
munt of principle, I have attacked no porson. I have merely
culled the attention of the country to certain clear-out inescap-
able facts -- and especially to the fact that this tax bill which
in many respects is a good one, notually abandone the accepted
principle of progrossivo tuxntion at a point which is very import-
are in our economic life.
Hore again is an example of n. provision of law which
natually, and in plain English, gives an infinitoly greater tax
concession to the man who makes a vory groat profit than to the
man who make la comparatively small profit. It helps the very few,
therofore, at the expense of the many. To earry on Government a
total G on has to be ralsed. If the many who make small capital
gains have to pay the and rate AS the few who make large capital
Chinn, it wonne that the tax rato for the littlo follow must be
higher than if TO had stuek to the accepted principle of a
graduated tuz.
In accordance with recommendations mdo during several
pust years, I hope that the Congross will undertake a broader pro-
gram of improving the Fodoral tax systom ns n. whole in the light
of accepted principlos of fairness in Amorican taxation and of the
necessary incontives in our oconomic lifo.
Regraded Unclassified
79
-6-
You will sue the difficulty in which your President
has been placed. This tax bill contains features that ought
to become law, but it contains several undesirable features,
especially the ones I have just been talking about.
If I sign the bill -- and I have until midnight to-
night to sign it -- many people will think I approve the abundon-
ment of an important principle of American taxation. If I veto
the bill it will prevent many of the desirable features of 1t
from going into effect.
Therefore, for the first time since I have been Presi-
dent, I am going to take the third course which is open to me.
I am going to let the Act go into effect at midnight
tonight without my approval.
By so doing, I call the dofinite attention of the
American people to those unwise purts of the bill I have talked
to you about today -- one of them which may restore in the future
certain forms of tax avoidance, and of concentrated investment
power, which we hud begun to end, and the other a definite
abandonment of a principle of tax policy long ago accepted as
part of our American system.
Two things we can well remember.
The first is that our whole tax system, state, local
and federal, can and must be greatly improved in the coming year.
The second is that we in this country are getting
more practical results in the way of bettering the social
conditions of the nation out of our taxes than ever bofore in our
history. That is why it is a pretty good idea to talk taxes
not only to parents but to the younger generation of America.
I am proud of what I have seen here today and I am
proud of all of you who are helping BO greatly to make this
community on American success.
Regraded Unclassified
80
February 1, 1944
5:02 p.m.
HMJr:
Hello.
Ted
Gamble:
Hello, Mr. Secretary.
HMJr:
Look, Ted.
G:
Yes.
HMJr:
I had that statement that you wanted me to sign
G:
Yes.
HMJr:
and Ted's sitting here and -- I mean Fred's
sitting here and you're on the loud speaker.
G:
Yes.
HMJr:
It's no good. Now, I'm too tired to tell you
what is a good statement but I know this is just
what I don't want.
G:
Yes.
HMJr:
And whoever prepared it 1s just out of tune. Now,
you can't pat all these big fellows on the back and
then turn around and say that that's going to help
inflation because that just isn't 80. And then keep
on saying, "Keep on buying little bonds.' It's like
trying to mix.oil and water. And I don't think --
it isn't a question that I don't want to sign -- I
don't think anybody should make a statement like
that.
G:
Well, we didn't
HMJr:
Fred said he prepared it. I didn't know that.
G:
Yes. Well
HMJr:
I didn't know that.
G:
I didn't interpret it that way, Mr. Secretary
HMJr:
Look
G:
when it was read to me.
HMJr:
Well, take it from me, will you?
Regraded Unclassified
81
- 2 -
G:
I agree what you said shouldn't be said.
HMJr:
Well, I don't want
0:
But that isn't the way I interpreted
HMJr:
anyone to say it and I don't see why we
can't just let the thing come out and if you
want to just let Treasury spokesmen point out
that beginning with February lst these two
longer bonds begin to draw interest and with
the result that the larger corporations begun to
subscribe as of today.
G:
Yes.
HMJr:
But I -- I wouldn't play it up.
G:
Uh huh.
HMJr:
I think you've got to keep playing up "We want
$3 billion worth of E Bonds, and $51 billion
from individuals." Anything over and above
that is just gravy.
G:
Yes.
HMJr:
But I -- I wouldn't, then, on the lst of February
pat the big corporations on the back. Now, I didn't
know -- I thought this came from your shop, but it
evidently -- well -- 80, will you -- without
0:
Well, maybe we could do this, Mr. Secretary. Maybe
we should just use that part of it where you comment
on the individual sales, and then
HMJr:
I wouldn't get out any statement.
G:
Yes.
HMJr:
I think it's too early.
G:
All right, sir. Well, we
HMJr:
Things are going beautifully.
G:
Yes.
HMJr:
I'd leave it alone.
Regraded Unclassified
82
- 3 -
G:
Fine. Well, we'll just give out the figures
then.
HMJr:
I'd give out the figures and I would point out
the fact that the reason for the big increase
is that these -- the 24 and 21 begin to draw
interest as of February lst.
G:
Yes. Right.
HMJr:
And you can't even have the February lst. They
haven't --they're not even in here.
G:
Well, you see, what we have is the back-log of
corporation reports to make today.
HMJr:
Now, are you disappointed?
G:
No. No. I -- I
HMJr:
Or do you by chance agree with me?
G:
Well, I do agree with you. My primary interest
in it, Mr. Secretary--let me say that maybe I
was doing a little job of press-agenting for
you. My primary interest in it was that I
thought the fact that we were releasing big
figures for the first time it would get some
attention, and_ I thought an appropriate place
for you to say something. That was my primary
interest in it.
HMJr:
Well, thanks for the bouquet but it's got too
many thorns on it.
G:
Yes.
HMJr:
And my -- I'm only interested in the success of
the War Bond Drive.
G:
Yes.
HMJr:
And I think it's inappropriate.
G:
Yes. Well, we'll Just do what you suggested.
HMJr:
What?
G:
We'll do what -- just exactly what you suggested.
Regraded Unclassified
- 4 -
83
HMJr:
Now, let me give Fred his say in court.
(Pause)
HMJr:
Fred says he's all right.
G:
All right, sir.
HMJr:
And when he -- and he's saying it with a
smile.
G:
Right. Well, you don't have to worry about
Fred and I. (Laughs) We usually agree with
you. When you convince us, I mean.
HMJr:
Yeah, that was an afterthought. (Laughs)
G:
(Laughs) All right, sir.
HMJr:
That's the way you do with your -- with your
little daughter, too, huh?
G:
(Laughs) That's right.
HMJr:
You go along with her (Laughs) when she
convinces you.
G:
All right.
HMJr:
What? All right. Give her my love.
G:
I'll do that, sir.
HMJr:
All right.
G:
Good night.
Regraded Unclassified
84
TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Press Service
Tuesday, February 1, 1944.
No. 40-55
The Secretary of the Treasury today announced the
final subscription and allotment figures with respect to
the current offering of 0.90 percent Treasury Notes of
Series D-1945.
Subscriptions and allotments were divided among the
several Federal Reserve Districts and the Treasury as fol-
lows:
Federal Reserve
Total Subscriptions
District
Received and Allotted
Boston
$ 134,699,000
New York
1,029,319,000
Philadelphia
56,431,000
Cleveland
91,216,000
Richmond
37,568,000
Atlanta
68,870,000
Chicago
294,558,000
St. Louis
72,590,000
Minneapolis
53,487,000
Kansas City
65,770,000
Dallas
46,804,000
San Francisco
174,615,000
Treasury
520,000
$2,126,447,000
-o00-
Regraded Unclassified
85
2/1/84
TO THE FEDERAL HOME LOAN BANKS AND SAVINGS
& LOAN ASSOCIATIONS OF THE UNITED STATES:
We know from experience that it takes a number of
days to develop the spirit and enthusiasm of a great
War Loan Drive to the point where personal solicitation
can produce the best results. Often the second call is
the effective one.
80 I an writing to ask for your unflagging support
of the Fourth War Loan in the last half of the Drive
period. In this, as in previous campaigns, word has
come from War Finance Committees in every part of the
country regarding the patriotic and effective participa-
tion of your institutions. You earry a substantial part
of the burden of issuing Bonds, and your contact with
savers in rural districts as well as cities enables you
to perform a most valuable service in the wide distri-
bution of War Bonds which is so importent.
With colossal military operations imminent on far
flung battle fronts, the oversubseription of every Fourth
War Loan quota--National, State and local--is of vital
importance. Our fighting men are looking to us to back
them up. I know we can count on your wholehearted sup-
port to the end of this Drive and beyond,
Sincerely,
(Wigned) H. Morgenthau, Jr.
RHE:DFT
Regraded Unclassified
The Secretary
86
FOURTH WAR LOAN
2/14+
Beginning January 18, 1944
(In millions of dollars)
Cumulative
: Through
: Through
: Through
: Through
: Through
:
Through
:
: Jan. 28
:
Jan. 29
:
Jan. 31
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
Series E Bonds
:
874
:
944
:
1,007
:
:
:
:
:
:
:
:
:
:
:
Series F Bonds
:
53
:
60
:
66 :
:
:
:
:
:
:
:
:
:
:
Series G Bonds
:
266
:
296
:
319 :
:
:
:
:
:
:
:
:
:
:
2-1/2% Treasury Bonds
:
250
:
312
:
400 :
:
:
:
:
:
:
:
:
:
:
2-1/li% Treasury Bonds
:
378
:
519
:
639 :
:
:
:
:
:
:
:
:
:
:
7/8% Certificates
:
790
:
968
:
1,230
:
:
:
:
:
:
:
:
:
:
:
Series C Notes
:
644
:
834
:
967 :
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
=
:
TOTAL
:
3,255
:
3,933
:
4,628
:
:
:
:
:
:
:
=
:
=
:
:
:
:
:
:
:
:
Regraded Unclassified
87
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE FEB 1 1944
TO
Secretary Morgenthau
FROM Mr. Paul
You have inquired as to the responsibility of the
Secret Service for the protection of the person of the
President.
The Secret Service assumed the responsibility for
the protection of the person of President Theodore
Roosevelt in 1901 after the assassination of President
McKinley. This activity was subsequently ratified and
authorized by items for the Secret Service in the annual
appropriation acts beginning with 1906. The Secret
Service item in the current appropriation act provides
for "the protection of the person of the President and
the members of his immediate family and of the person
chosen to be President of the United States. "
There is no other legislative definition of the
duties of the Secret Service in regard to this matter.
Apr
Regraded Unclassified
88
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
Regraded Unclassified
DATE
February 1, 1944
TO
Mr. Thompson
FROM Mrs. Doyle mw D
Re: Day Care Service for children of working mothers
A. Circular No. 3 (attached) has been distributed to all personnel
officers, and mothers who have expressed interest in the day care service.
It contains information on schools recently opened as well as the contents
of the two preceding circulars on Day Care Service.
B. Brit Interviews
Six cases of mothers and one grandmother who were about to
resign because of the need for care of their children were referred by
personmel officers to the Employee Relations Section,
Resume of Interviews
1. A transfer from night work to day work enabled one mother
of a two year old child to continue work in the Treasury.
2. A grandmother, in sole charge of grandchild, at present
on leave, will enter child in nursery school as soon as it opens and
then return to job.
The other five women were told of all child care possibilities,
but other factors were such that resignation was the only solution.
3. Mother of 4 children, ages 5 months to 3 years, could not
manage so many children and job.
4. Mother of one baby, one year old, with another coming in
March felt she must stay home for reasons of personal health.
5. Mother of 2 children, 9 and 7, with husband just drafted.
The husband persuaded her to give up job so that be "would not be worried
over her and children while be was in the Army". She will go "back home".
6. Mother of two small children whose husband had just
resigned to go "back home".
7. Mother of 21 year old for whom nursery school facilities
"RES founds Guld not manage job, home and nursery school because she
felt her health would not permit.
Q. Common ty Contacts
Continuous contacts are maintained with sources of assistance
through day care facilities. Interviews for mothers with the officials of
the day care facilities are facilitated with minimum loss of working time
to the mothers.
the
TREASURY DEPARTMENT
89
Division of Personnel
February 1, 1944
Circular No. 3 on Facilities for Day Care for Children
of Working Mothers in Metropolitan Washington
DISTRICT OF COLUMBIA
Offices of the District of Columbia Service to Children of Working Mothers
are at 472 Indiana Avenue, Telephone National 6000, Extensions 2880-2881. All
parents must call this office for an appointment before enrollment of a child.
SERVICES AVAILABLE LTOW
Nursery Schools (Children 2 - 5)
For White Children
314 D Street, S. E.
Truesdell School, 9th & Ingraham St., N. W.
Langdon School, 20th and Evarts Street, II, E.
For Wegro Children
Harrison School, 12th ¿: V Street, N. W.
Smothers School, 44th & Washington Place, N. E.
Langston Terrace, 24th and Benning Road, N. E.
School Age Centers (Children 5 and over)
For White Children
314 D Street, S. E.
H. D. Cooke School, 17th & Euclid Street, II. W.
Thompson School, 12th and L Street, it. W.
For legro Children
Smothers School, 44th & Washington Place, N. E.
Lorgan School, 18th & V Street, N. W.
Foster Care Service (Children 2 and under)
Applications for day foster homes for children under 2 and for
children who cannot attend the day care centers or nursery schools are
accepted.
Fees - The fees range from eight dollars per week per child down to free
care for the second or third child of a woman whose income is low.
Hours and ..eals - Centers are open six days 8 week from 7 to 7. A hot
lunch at noon, and mid-morning and mid-afternoon snacks are provided.
MONTGOLD.RY COUNTY, MARYLAND
SERVICES AVAILABLE now
Nursery Schools (Children 2 to 5)
For White Children
Fairway Hills War Nursery, Chapel of the Redeemer, Dunrobbin Road
Glen Echo, Maryland (For information, telephone Oliver 6489)
Takour Park Nursery, Philadelphis Avenue and Cedar St., Takoma
Park, Maryland (For information, telephone Silver Spring 0464)
Fees - $3.00 por wouk per child
Hours and meals - Centers are open from 7 a. a. to 6 or 6:30 P. m. days'
a week. 4 hot lunch at noon, and mid-morning and mid-afternoon snacks are
provided.
Regraded Unclassified
- 2 -
90
PRINCE GEORGE'S COUNTY, MARYLAND
Office of the Supervisor of Pre-School Child Care Centers is in the Hyatts-
ville Elementary School, Hyattsville, Maryland, Telephone Hyattsville 0369.
SERVICES AVAILABLE NOW
Nursery Schools (Children 2 through 5)
For White Children
Suitland Elementary School, Suitland Road, Suitland, Maryland
Greenbelt Child Care Center, 14 Parloway Road, Greenbelt, Md,
Calvert Home Development
Fees - $3.00 per week
Hours and meals - Schools are open six days a week from 7 to 6 or 6:30.
Hot noon meals, and mid-morning and mid-afternoon milk or fruit juices and
cookies or sandwiches are served.
ALEXANDRIA, VIRGINIA
Offices of the Supervisor of Nursery Schools and the Elementary Supervisor
for Extended School Services are in the Jefferson School Annex, Alexandria,
Virginia, Telephone Alexandria 4656.
SERVICES AVAILABLE NOV
Nursery Schools (Children 2 to school age)
For White Children
Goorgo Lason School, 2601 Camoron Mills Road
Ht. Vornon Bursery School, 2600 Mt. Vornon Avenue
Washington Nursery School, Acadomy Bldg., 400 S. Washington St.
For Nogro Children
St. Josoph's Church, corner Columbus and Wythe Streets
Foes - $3.00 wookly for White children
$2.00 wookly for Wegro children
Hours and Roals - Schools are opon from 7 to 6, six days a week. A hot
noon moal, and mid-morning and mid-afternoon snacks are served.
Extended School Services (School Age)
For White Children
Jofforson School Annex, Alexandria, Virginia
Foos and Hours
12:30 to 6 p. D. daily and 7 to 6 Saturday - $4.00 weekly
3:45 to 6 p. n. daily and 7 to 6 Saturday - $2.00 weekly
7 to 6 Saturday only
- $1.00 weekly
Moals - de hot lunch is provided daily.
For further information telephone the Main Treasury Building, Ext. 2009.
JOSEPH A, JORDAN
Chief, Employee Relations Section
Regraded Unclassified
TREASURY DEPARTMENT
WASHINGTON 25
TART
February 1, 1944
TO OFFICERS AND EMPLOYEES OF THE TREASURY DEPARTMENT:
The President, under date of January X. 1944, issued the following
memorandum to all heads of departments, commissions or agencies:
"The excanding operations of our Armed Forces throughout
the entire world have necessitated corresponding expansion of
the services of the American Red Cross in all of its fields
of foreign and domestic activities. In our grim and solemn
task the fortitude and devotion of the Red Cross in sustain-
ing the morale and welfare of our men in the several Services
is of inestimable value.
"For the far-flung operations of the American Red Cross
immense material and financial resources are required and it
is essential that steps be taken to assure that our Federal
and District Government employees contribute their pronor-
tionate share to its voluntary succort. This is important
from a national as well as a local viewoint. I have, there-
fore, appointed Honorable Ernest G. Draner, Member of the
Board of Governors of the Federal Reserve System, as Chairman
of the Government Unit of the 1944 Metronolitan Area Cammaign.
I earnestly desire that you cooperate with him to create an
adequate campaign organization for the successful solicitation
of the employees within your own decartment. The success of
last year's appeal gives ample assurance of the generosity of
our people in the attainment of the greater 1944 goal.
"The welfare of our forces depends in no small degree
on the present vast and increasing responsibilities of the
Red Cross at home and abroad. Through our gifts we may nar-
ticipate in this great Institution's faithful service to
those bound to us in love and valiant sacrifice. Let's bear
in mind that in this way we may express our deep gratitude
and our great concern for their well-being."
The American Red Cross has set a national goal of $200,000,000
with a quota for the Federal Government of $1,105,800.
Regraded Unclassified
- 2 -
This national goal represents the actual needs of the Red Cross
so gustain its ever increasing services to the men and women of the
Aray, Navy and Marine Coros.
In view of the indicated needs you can see there is the neces-
sity for that wholehearted response to anneals for assistance which
has always characterized the personnel of the Treasury Department.
If each one avails himself of the ovportunity to contribute to
this cause, we will encounter no difficulty in reaching our allotment,
It has been my pleasure to designate the "onorable John L. Sullivan,
Assistant Secretary of the Treasury, AS Department Chairman, and I
request that the heads of all bureaus and offices render him every
possible assistance in promoting this most worthy undertaking.
Secretary of the Treasury
Regraded Unclassified
AAA
93
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
FEB - 1 1944
TO
Secretary Morgenthau
FROM Randolph Paul
For your information
After reading & resume of Jim Mann's strictly con-
fidential memorandum concerning Argentina, you inquired about
Meyer Pellegrini and his relationship with our Embassy in
Argentina.
Pellegrini is a well-known Argentine lawyer of German
descent and & one-time Cabinet Minister, National Deputy,
and Interventor.
Pellegrini is directly or indirectly associated with
numerous German interests in Argentina, particularly those of
Fritz Thyssen. He was formerly President of Thyssen-Lametal,
an important steel and pipe producer and distributor, which
was placed on the Proclaimed List in July 1941, and he is
still, behind the scenes, the head counsellor And director.
He is closely associated with Hellmuth Simons, an Argentinean
who is reported to be & Section Chief of the Gestapo, and with
many other individuals who maintain official connections with
large Proclaimed List firms in Argentina. He was formerly
President of the Banco Germanico and retained that position,
even though the bank was on the Proclaimed List, until pressed
by the Embassy to resign.
Pellegrini has recently organized at least nine com-
panies, many of which appear to be unprofitable and some of
which have served as cloaks for Axis capital in Argentina.
He is reported to have signed official documents testifying
to the moral character of German spies in order to permit
their legal entry into Argentina.
The relationship between Pellegrini and our Embassy
is not known to us. However, & recent despatch from our
Regraded Unclassified
94
- 2 -
Embassy, which sets forth many of Pellegrini's undesirable
activities, concludes with the recommendation that no
sanctions be applied to Pellegrini.
Pellegrini has no funds in this country in his own
name, and the assets held in the names of the companies
with which he is closely affiliated are blocked. However,
in order to place the facts on the record and with a view
to recommending his inclusion on the Proclaimed List, we
are requesting our Embassy to report more fully concerning
Pellegrini's activities.
hh
Regraded Unclassified
95
VICTORY
BUY
treasury DEPARTMENT
UNITED
STATES
WAR
BONDS
:
PROCUREMENT DIVISION
STAMPS
WASHINGTON 25
OF THE DIRECTOR
SECRET
February 1, 1944
MEMORANDUM TO THE SECRETARY:
There is submitted herewith the weekly
report of Lend-Lease purchases.
The Procurement Division has contracted
for 5,152,000 lbs. of binder twine, the
amount required for use in harvesting of
crops in North Africa.
Ciffton E. Mack
Director of Procurement
Regraded Unclassified
96
LEND-LEASE
SECRET
TREASURY DEPARTMENT, PROCUREMENT DIVISION
STATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND
DELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS
AS OF JANUARY 26, 1944
(In Millions of Dollars)
Administrative
Miscellaneous &
Total
U. K.
Russia
China
Expenses
Undistributed
Allocations
$4637.3
$2287.9
$1862.4
$113.8
$11.0
$362.2
(4628.5)
(2286.9)
(1860.6)
(113.8)
(10.6)
(356.6)
Purchase Authoriza-
$3478.8
$1819.9
$1369.7
$44.4
-
$244.8
tions (Requisitions)
(3425.5)
(1793.3)
(1350.9)
(44.3)
-
(237.0)
Requisitions Cleared
$3361.2
$1756.2
$1337.1
$44.1
-
$223.8
for Purchase
(3331.0)
(1740.1)
(1325.1)
(43.8)
-
(222.0)
Obligations
$3236.3
$1716.4
$1307.9
$43.7
$9.6
$158.7
(Purchases)
(3202.0)
(1702.4)
(1291.9)
(43.7)
(9.6)
(154.4)
Deliveries to Foreign
$1663.5
$1127.0
$ 468.2
$21.1
-
$27.2
Governments at U. S.
(1628.9)
(1103.0)
(480.5)
(20.6)
-
(24.8)
Ports*
*Deliveries to foreign governments at U. S. Ports do not include the
tonnage that is either in storage, "in-transit" storage, or in the
port area for which actual receipts have not been received from the
foreign governments.
Note: Figures in parentheses are those shown on report of January 19, 1944.
97$
BRITISH air COMMISSION
1785 MASSACHUSETTS AVENUE
WASHINGTON, D. C.
TELEPHONE HOBART 9000
ASE QUOTE
ERENCE NO
With the compliments of British Air Commission
who enclose Statements Nos. 121 and 122 - Air-
craft Despatched - for the weeks ended January
18th and January 25th respectively.
The Honourable Henry Morgenthau, Jr.
Secretary of the Treasury
WASHINGTON, D.C.
February 1, 1944.
Regraded Unclassified
97g
BRITISH air COMMISSION
1785 MASSACHUSETTS AVENUE
WASHINGTON, D. C.
TELEPHONE HOBART 9000
ASE QUOTE
ERENCE NO
With the compliments of British Air Commission
who enclose Statements Nos. 121 and 122 - Air-
craft Despatched - for the weeks ended January
18th and January 25th respectively.
The Honourable Henry Morgenthau, Jr.
Secretary of the Treasury
WASHINGTON, D.C.
February 1, 1944.
Regraded Unclassified
MOST SECRET
MOST SECRET
STATEMENT NO.121
Aircraft Despatched from the United States
Week Ended January 18th, 1944
ASSEMBLY
BY
BY
FLIGHT DELIVERED
TYPE
DESTINATION
POINT
SEA
AIR
FOR USE IN CANADA
CONSOLIDATED
Liberator B-VI
India
India
6
Liberator GR VI
U.K.
U.K.
3
Liberator GR VI
India
India
1
GLENN MARTIN
Marauder II
M.E.
N.E.
6
Baltimore V
M.E.
M.E.
10
NORTH AMERICAN
Mitchell II
U.K.
U.K.
13
Harvard
East Africa
Tanga (B.A.D.)
1
Mustang
U.K.
U.K.
21
VEGA
intura GR V
M.R.
M.E.
8
intura GR V
S. Africa
8. Africa
2
DOUGLAS
Dakota III
U.K.
U.K.
3
Dakota III
India
India
8
Dakota III
S. Africa
S. Africa
1
BOEING
Catalina IV
U.K.
U.K.
3
FAIRCHILD
Cornell I
Canada
Canada
59
GRUMMAN
Avengers
E. Africa
Mombasa
8
Avengers
U.K.
U.K.
8
Wildcat
U.K.
U.K.
1
VULTEE
Vengeance
U.K.
U.K.
3
engeance
India
Karachi
9
engeance
Australia
Sydney
10
CURTISS
Kittyhawk
N.W. Africa
Oran
21
Kittyhawk
New Zealand
Auckland
5
NOORDUYN
Harvard
U.K.
U.K.
10
Norsemen
Australia
Sydney
3
STINSON
Reliant
Ceylon
Ceylon
1
Movements Division
Total:
101
64
59
British Air Commission,
22/1/44
Regraded Unclassified
MOST SECRET
STATEMENT NO.122
NOT SECRETY
Aircraft Despatched from the United States
Week Ended January 25th, 1944
ASSEMBLY
BY
BY
FLIGHT DELIVERED
DESTINATION
POINT
SEA
AIR
TYPE
FOR USE IN CANADA
CONSOLIDATED
Liberator B VI
M.E.
M.E.
2
Liberator B VI
India
India
5
Liberator GR VI
U.K.
U.K.
4
Liberator GR VI
India
India
2
Coronado GR I
U.K.
U.K.
2
NORTH AMERICAN
Mitchell II
U.K..
U.K.
16
Mustangs
U.K.
U.K.
34
Harvard
M.R.
Sues
5
VEGA
Ventura GR V
M.E.
M.E.
13
Ventura GR V
S. Africa
S. Africa
2
MARTIN
Baltimore III A
M.E.
M.E.
1
Baltimore V
N.E.
M.E.
17
DOUGLAS
Dakota III
India
India
9
Dakota III
U.K.
U.K.
15
Dakota III
S. Africa
S. Africa
1
BOEING
Catalina IV B
U.K.
U.K.
3
FAIRCHILD
Cornell I
Canada
Canada
33
Argus
India
Karachi
10
CURTISS
Seamew
U.K.
U.K.
2
Kittyhawk
N.W. Africa
Casablanca
15
Kittybawk
New Zealand
Wellington
4
VULIEE
Vengaance
Australia
Sydney
4
NOORDUYN
Norseman
Australia
Sydney
1
Total:
75
92
33
Mot
ente Division
British Air Commission
January 31, 1944
mb
Regraded Unclassified
100
PLAIN
HL - - 420
Cairo
Dated February 1, 1944
Rec'd 5:44 p.m.
Secretary of State,
Washington.
217, first.
FOR SECRETARY OF TREASURY FROM MIKESELL.
Leaving Cairo for work in Palestine and Syria for two weeks.
KIRK
WVC
copy
0f12-2-44
Regraded Unclassified
101
NOT TO BE RE-TRANGUITTED
U.S. SECRET
COPY NO
12
BRITISH MOST SECRET
OPTICE lo. 37
Information received up to 10 A.M. 1st February, 1944
L NAVAD
Up to 10 A.M. yesterday no ships in convoy to RUSSIA had been
toroodood. About 40 ratings were lost on one of H.M. Destroyers. Weather
conditions excellent at ANZIO Bridgohend and unlos ding progressos roll.
One of n.M. Submerines shelled 2 seaplane bases in SOUTHERN PRANCE on 23rd
and 27th respectively.
On 30th. another of R.m. Submarines torpodoed two Mostbound ships
of 7,000 tons and 3,500 tons off POULON and on 31st torpedood to Eastbound
coasters. On 29th/30th coantel forces Bank E small Gorman tanker and a large
schooner off YUGOSLAV count, 8 prisoners vero captured. Yesterday two of
9.M. Sloops senk a 0-bost in South Vestern Approaches.
2. MILITARY
Italy To noon 31st. 8th army. Canadians have made B small advance
astrido the TOLLO Road against strong opposition.
5th. army North of CASSINO there has been more heavy fighting
In French sector. U.S. Troops have captured the village of CAIRO 2 miles
Northwest of CASSINO. In sritish sector enemy is still countersttacking
around CASTELFORTE and MINTURNO.
6th Corps British and U.S. Forces began an attack on 30th but are held
up outside CISTERNA and CAMPOLEONE.
3. AIR OPERATIONS
Western Front 30th/31st. BERLIN. 983 tons HE and 820 tons
incondiaries dropped including 341 4,000 pound bombs.
31st. Escorted Liberators dropped 189 tons on military constructions Northern
FRANCE. Escorted Thunderboit bombers dropped 16 tons with good effect on an
cirfiold in Southern HOLLAND. Enemy casualties 13:0:1. Allied six missing.
Italy 28th/29th. Wellingtons dropped total of 55 tons on railway
centrer at FOBIGNO and VERONA, 2 Wellingtons missing.
29th. Railway communications in East and Central ITALY were attacked
by medium and heavy bombers which dropped about 675 tons, 3 medium bumbers
missing. A total of 430 light and fighter bombers operated over the Vestern
Bittic ares, 54 motor vehicles were destroyed, 84 damaged and 2 enumy fighters
anot down.
OFTEL NO 36 not sent to ashington.
TREASURY DEPARTMENT
Regraded Unclassified
102
February 2, 1944
10:09 a.m.
HMJr:
Good morning.
Leo
Crowley:
Good moraing. Say, I was going to call you
this morning before you called me
HMJr:
Yeah.
C:
and I -- we want to talk to you about
that Lend-lease stuff and I'm going to try,
if I possibly can, to change 8 luncheon date
that I have with the Brazilian Ambassador
HMJr:
Yeah.
C:
to tomorrow, and if not, I'll come over
for a little while anyhow.
HMJr:
Well, I'd appreciate it because I'm going
away in a day or SQ and I -- this is amongst
my "unfinished business".
C:
Fine and dandy. Well, I'll be over for a
while anyhow.
HMJr:
Well, will you
C:
But I'll try and postpone the lunch so I can
stay all through 1t.
HMJr:
Well, that will be fine.
C:
Because I've got a lot of things I want to
talk to you about anyhow.
HMJr:
Well, then I can count on Cox and Currie?
C:
That's right. And myself.
HMJr:
And yourself?
C:
That's right.
HMJr:
That's very kind.
C:
Thanks.
HMJr:
Thank you.
Regraded Unclassified
103
February 2, 1944
10:15 a.m.
General
Watson:
Hello.
HMJr:
Yes.
W:
Say, Henry.
HMJr:
Yes.
W:
The President said that he'd have to postpone
that until tomorrow.
MMJr:
Oh, gee!
W:
He cut off five people, including Ickes, for lunch,
who has been trying to get in here for two weeks.
HMJr:
Yeah.
W:
And I don't think he's really feeling like working
yet myself.
HMJr:
Yeah.
W:
He's got every damn minute up to lunch.
HMJr:
Yes.
W:
And -- but he says, "Tomorrow -- no -- Thursday,"
he's got.
HMJr:
What?
W:
He says, "No, not today. If I had you down
HMJr:
Yeah.
W:
for the first and he says, "No, Thursday," and
McCloy and Ickes and one other.
HMJr:
Uh huh.
W:
But it's tomorrow.
HMJr:
I see.
W:
I'll give you the first one tomorrow.
Regraded Unclassified
104
- 2 -
HMJr:
You don't know whether it will be bedside or not?
W:
No, I think probably it will be the first one --
too much family there for the bedside, I think.
HMJr:
I see.
W:
I don't know. I think Mrs. Roosevelt and Anna
and all those people go in.
HMJr:
Uh huh. But it will be the first one tomorrow.
W:
I'll give you the first one. I'll take it on
myself to do that.
HMJr:
Oh. Okay. I'm disappointed but
W:
Yes.
HMJr:
....
there's nothing I can do.
W:
Well, I -- nothing I could do about it either.
I gave you the -- I gave him the first talk for
you.
HMJr:
Yeah. Okay.
W:
All right.
HMJr:
Thank you.
Regraded Unclassified
105
February 2, 1944
I spoke this morning to Stettinius and told him that
I had taken Pehle over for lunch with Mr. Stimson and Mr.
Stimson said that if, when I asked Stimson whether if the
President was unable to get Frank Graham would he be
willing to give Pehle a trial, and Stimson said, "Yes".
But I said that he would have to clear everything personally
with Stettinius. And I said wouldn't Stettinius be willing
to go along? He at first hesitated and said that he thought
the President wanted some important figure. So I said,
"What are the Cabinet Members there for?" And he said,
"That's right." So he said, "Well, I'm willing to go along."
But he was just a little hesitant about it.
Regraded Unclassified
106
February 2, 1944
10:45 a.m.
JEWISH EVACUATION
Present: Mr. Pehle
Mrs. Klotz
H.M.JR: Now you had better explain to me - where
does this organization--
MR. PEHLE: This is the people who are very closely
connected with the J.D.C.
H.M.JR: Why did they do it separately from J.D.C. -
say they are appealing for funds? I thought the J.D.C.
is just appealing for four million dollars.
MR. PEHLE: This is all tied right in with that.
This is the United Jewish Appeal.
H.M.JR: Doesn't say 80.
MR. PEHLE: It is signed United Jewish Appeal for
Refugees Overseas Needs. Most of their money, as I
understand, goes to the J.D.C., but it is all one thing
like the Community Fund.
H.M.JR: But is the J.D.C. part of the Jewish Appeal?
MR. PEHLE: That is what I understand.
H.M.JR: (Refers to attached telegram of February
2, 1944) Oh, yes.
What are they going to do?
Regraded Unclassified
107
- 2 -
MR. PEHIE: I guess they want to talk with the
three Secretaries. It shows a need of the Executive
Director, because you can't have those people together
to talk to every organization. We are having a flow of
them in here.
H.M.JR: You see, this is a bad piece of business.
I mean, Stimson won't know what to do, Hull won't know
what to do.
MR. PEHLE: I was thinking, if you called them up
and have them come over and you will see them - they
may misunderstand, you see. I think they will refer them
over here.
H.M.JR: Well, Rabbi Jonah B. Wise is National Chair-
man. Why dn't I call him on the phone and tell him if
he would keep his shirt on, I think we will be able -
what?
MR. PEHLE: That is what I would do.
(The Secretary places a call to Rabbi Jonah B. Wise)
MR. PEHLE: That is the initial order on the press
release that came out of the White House.
H.M.JR: Let me just see which of these I know and
which I don't. (Refers to attached memorandum entitled
"Accomplishments to Date," dated February 2, 1944)
(Reading) "1. We have worked out with the world
Jewish Congress a program to evacuate refugees from
France into Spain, Switzerland and North Africa and from
Rumania. Appropriate licenses have been granted author-
izing the necessary operations."
Do I know about this number one thing? Is that the
ship?
MR. PEHLE: The number one thing was originated
before the War Refugee Board. That is the initial case
in which the World Jewish Congress started.
Regraded Unclassified
108
- 3 -
H.M.JR: Where do I look for reference on that?
MR. PEHLE: I haven't ot those all documented.
H.M.JR: But you can?
MR. PEHLE: I can document them.
H.M.JR: Couldn't that be number one?
MR. PEHLE: There will be an awful lot of paper.
H.M.JR: In case he asks me.
MR. PEHLE: Sure. I will give you a documentation
on each one:
H.M.JR: So if he says, "What is this?" I can refer
to it.
MR. PEHLE: 1 will give you documentation of each
one.
H.M.JR: Now, this one about this Schulman,
that is quite recent, too, isn't it? You haven't
got that documented.
MR. PEHLE: No, I haven't. Do you want the cables,
or just a fuller statement?
H.M.JR: What I would like to have is a fuller state-
ment with the cables back of it. So I could turn to
number two and then have the thing, you see, with the
cables back of it.
MR. PEHLE: Yes, sir.
H.M.JR: Now, number ten - "At our suggestion, the
Department of State" - I just wonder whether I would say,
"At our suggestion."
MR. PEHLE: On the cable?
Regraded Unclassified
109
- 4 -
H.M.JR: Why not just say, "The Department of State
has--" you know, it is like the one with Stettinius.
MR. PEHLE: Yes,sir.
H.M.JR: "The Department of State has sent" I would
say. Don't you agree?
MRS. KLOTZ: That is right.
H.M.JR: Again, number eleven, "We have furnished
the War Department" - I would say, "The War Department
has sent."
MR. PEHLE: I don't know if they have sent them
yet. We furnished them at their suggestion. I don't
see any objection to that.
H.M.JR: All right.
You never told me about your meeting with Lehman.
MR. PEHLE: No, I didn't. Do you want me to tell
you now?
H.M.JR: Yes.
MR. PEHLE: We had a long, very friendly talk. I
think he was satisfied.
(The Secretary held a telephone conversation with
Dr. Jonah B. Wise, as follows:)
Regraded Unclassified
110
February 2, 1944
11:13 a.m.
HMJr:
Dr. Wise?
Jonah
Wise:
Yes.
HMJr:
Is this Dr. Jonah Wise?
W:
Yes.
HMJr:
Henry Morgenthau, Jr.
W:
Yes, sir.
HMJr:
I got your cable, Dr. Wise, and I -- my call is
in response to that.
W:
Yeah.
HMJr:
I take it you are Chairman of this United Jewish
Appeal?
V:
Yeah.
HMJr:
Well, now, Dr. Wise, the trouble 18 we're sort of
hopeful that any day the President will appoint a
Director.
W:
Yes.
HMJr:
And I doubt very much if we can get this Board
together to meet with your people.
W:
Yeah.
HMJr:
Wouldn't it be agreeable if you could meet with
the Director?
W:
Why, I think that would be the better thing to do.
He will probably have very great authority--delegated
authority.
HMJr:
That's right. I -- I think so because, while Mr.
Stimson is very sympathetic, he has expressed a
hope that he will not have to give it too much
time, personally, you see? And in the case of Mr.
Hull, he's sort of leaving it to Mr. Stettinius.
W:
Yeah.
Regraded Unclassified
111
- 2 -
HMJr:
I question the wisdom and I thought I could talk
to you frankly in asking
W:
Hello?
HMJr:
....
to convene this Board to meet with your people
but if you weren't too insistent and you could meet
with the Director and get a satisfactory result,
wouldn't that be all you desire?
W:
Well, I'll have to speak to -- you know Bill
Rosenwald is on this.
HMJr:
Yes.
W:
One of the Chairmen.
HMJr:
Hello?
W:
Bill Rosenwald is one of the Chairmen. Supposing
I speak to Bill about it.
HMJr:
Yes.
W:
Then we can communicate with you, but I would be
of the opinion that your suggestion 1s a good one.
HMJr:
This is not a run around. This is to get results.
W:
Yeah. You think that would get the results better
and more promptly?
HMJr:
I think so, and if it didn't work, then you could
always go to the Board.
W:
But you don't think
HMJr:
Hello?
W:
I say, you doubt your ability to get them together
just for a meeting?
HMJr:
Well, it could be done, but I doubt the wisdom of
it in the first instance.
W:
Yes. Very well, I'll be thinking about it and I'll
communicate with Mr. Rosenwald.
HMJr:
Will you do that?
Regraded Unclassified
112
- 3 -
W:
You're not speaking to him are you?
HMJr:
No, I just called you.
W:
All right, thanks. I'll speak to him.
HMJr:
Right.
W:
Thanks a lot.
HMJr:
Thank you.
113
- 5 -
MR. PEHLE: You are very gentle with him.
H.M.JR: Gentle? Why not?
MR. PEHLE: I didn't say why not. I thought you
were very gentle.
H.M.JR: Why shouldn't I be?
MR. PEHLE: I think you have to be very firm, be-
cause there are so many of them pushing all the time. I
mean, if one saw the Board they will all want to see the
Board.
MRS. KLOTZ: The Board will have to sit forever.
H.M.JR: I wasn't thinking of that. I feel very
gentle!
MR. PEHLE: So I talked to Lehman alone. He had
no one else in there. He was very friendly. He didn't
seem to have any real suspicions that somebody was trying
to cut in on his job. And I went out of my way to allay
any possibility that he would have such suspicions, and
told him that as I saw it, the Board was not being an
operating agency in these camps, and so forth. Of course
the Board would want UNRRA to do it.
He said that all the facilities of UNRRA were at the
disposition of the Board. He made arrangements so that
some of my people are already working with some of the
UNRRA people, particularly on that camp at Casa Blanca.
But I gave him pretty much the full story of how
this thing had developed and how it had come about.
H.M.JR: How much did you give him?
MR. PEHLE: I held back some, but I followed out the
thing that you told him over the phone, which was that I
would tell him everything that you knew about it.
Regraded Unclassified
114
- 6 -
H.M.JR: Did you tell him about all that stuff at
the White House?
MR. PEHLE: No, very generally.
H.M.JR: He is evidently satisfied, because he hasn't
called me back.
MR. PEHLE: Yes, I think he is all right.
Now the bill is through.
H.M.JR: Did the President sign it?
MR. PEHLE: Sure.
H.M.JR: He did?
MR. PEHLE: It was signed and I just located it
yesterday afternoon.
H.M.JR: That is something. That is for the general
expenses?
MR. PEHLE: Very broad language, it can be used for
anything. (Mr. Pehle hands the Secretary the attached
Allocation No. 44-58 from the President, dated January
29, 1944)
H.M.JR: This is amazing.
MR. PEHLE: Fifty percent of that is out of the
confidential portion of the Fund. Those don't have to
be accounted for at all, just a receipt.
H.M.JR: Now let's just see - that last number
seventeen is new, isn't it? (Refers to memorandum)
MR. PEHLE: Yes.
H.M.JR: Could I keep this? (Refers to notebook
of exhibits.)
Regraded Unclassified
115
- Y -
MR. PEHLE: I would rather keep working on it.
May I show you a couple of other things that are in
there? (Points out various important items to the
Secretary)
H.M.JR: How can I locate that? Where does it
say "Unitarian"?
(Mr. Pehle. points to index)
MR. PEHLE: Now, here is the letter on the hundred
thousand dollars, press release on that ten-dollar con-
tribution. These are telegrams to the Treasury people -
instructions to War.
We will document every item.
H.M.JR: Now, the most important thing is when it
comes to names. That is what I want. Just make this
a little simpler, you see? This is all right if you just
underline this, you see? I want to show him he has
big names, you see.
You leave this with me for a little while, will you,
please?
MR. PEHLE: Yes, sir. Do you want the whole book?
H.M.JR: Yes, just leave this. I will get it back
to you.
MR. PEHLE: Yes. The next item is some of the
clippings and a very good editorial.
Yes, that is all right, if you will get it back.
Let me just mention one thing. The State Department
had a hearing at Budget for five million dollar appropria-
tion.
H.M.JR: For what?
Regraded Unclassified
116
- 8 -
MR. PEHLE: For stuff that is tied all in with this.
Budget promptly told them that they didn't understand
the relationship between this and the Refugee Board, got
in touch with me, and State is all concerned about it.
State, on January 28, after the Board was established,
sent a letter to Budget asking for five million dollars
for the Intra-Governmental Committee, and everything,
not consulting the Refugee Board at all.
H.M.JR: Have you told this to Stettinius?
MR. PEHLE: No, but I am going to.
H.M.JR: Will you deal with Stettinius? We will
do it this way, we can't bother Stettinius too much,
you see - he was a little bit, this morning - you know--
MR. PEHLE: Did you talk to him this morning?
H.M.JR: Yes, but - well, he still was for a name.
I convinced him if I couldn't get the one, it was all
right for you.
I felt his feeling was, "God, this is getting to be
a nuisance."
MR. PEHLE: Pushing him a little bit too much?
H.M.JR: Yes, a little. You know Stimson said
yesterday it was all right if I would stay back of you.
MR. PEHLE: Yes.
H.M.JR: Which I thought was interesting. I would
try not to bother Stettinius more than once a day, but
this thing on Budget I would get to him. Then, if you
don't get any results, I will back you up.
MR. PEHLE: That is the thing in hand, now.
Regraded UInclassified
117
- 9 -
H.M.JR: Who tried to pull that?
MR. PEHLE: Probably Travers or one of those people.
H.M.JR: Who is Travers?
MR. PEHLE: Head of the Visa Division.
H.M.JR: Now, Billy Riegelman when he was here said
they still were. going to go ahead, he thought, with this
Inter-State Department Committee on refugees.
MR. PEHLE: Intra-State.
H.M.JR: Intra--
MR. PEHLE: That is all right. I don't think we
can object to that.
Finis?
H.M.JR: Yes.
Regraded Unclassified
P
H
118
T
R
SUP LG SER
E
A
ZG NEWYORK NY FEB 1 1944 628P
S
1944 FEB 2 AM 8 30
U
THE HONORABLE HENRY MORGENTHAU JR
R
SECRETARY OF THE TREASURY
Y
AS THE THREE NATIONAL CHAIRMAN OF THE UNITED JEWISH APPEAL FOR
T
E
REFUGEES OVERSEAS NEEDS AND PALESTINE, LARGEST FUND RAISING
L
E
AGENCY THROUGH WHICH AMERICAN JEWS PROVIDE FOR THE RELIEF AND
G
REHABILITATION OF REFUGEES IN EUROPEAN AND OTHER LANDS,
R
PALESTINE AND OTHER LANDS, PALESTINE AND THE UNITED STATES,
P
H
WE ARE MOST ANXX03 ANXIOUS TO MEET WITH YOU AND YOUR ASSOCIATE
MEMBERS FOR THE WAR REFUGEE BOARD IN CONFORMITY WITH THE BOARDS
T
DESIRE TO ACCEPT THE SERVICES OF PRIVATE ORGANIZATIONS AND
R
AGENCIES. THE UNITED JEWISH APPEAL FOR REFUGEES, OVERSEAS
A
S
NEEDS AND PALESTINE PROVIDES FUNDS FOR THE PROGRAMS OF THE
U
AMERICAN JEWISH JOINT DISTRIBUTION COMMITTEE. THE UNITED
R
Y
PALESTINE APPEAL, AND THE NATIONAL REFUGEE SERVICE, WHICH ARE
THE MAJOR AGENCIES CONCERNED WITH REFUGEE PROBLEMS IN EUROPE,
E
L
PALESTINE, AND THE UNITED STATES, RESPECTIVELY. WE WOULD
E
APPRECIATE OPPORTUNITY OF MEETING WITH YOU OR YOUR APPOINTED
REPRESENTATIVES AT YOUR EARLIEST CONVENIENCE. IDENTICAL
P
VESSAGES HAVE BEEN SENT TO THE HONORABLE CORDELL HULL AND
H
THE HONORABLE HENRY L STIMSON RESPECTFULLY
T
R
UNITED JEWISH APPEAL FOR REFUGEES OVERSEAS NEEDS AND
E
PALESTINE RABBI JAMES G HELLER MR WILLIAM ROSENWALD
A
S
RABBI JONAH B WISE NATIONAL CHAIRMAN 342 MADSON
U
R
AVENUE NEW YORK CITY.
Y
825AM FEB 2.
T
E
Regraded Unclassified
Allocation No. 44-58 119
THE WHITE HOUSE
Washington
JAN 29 1944
My dear Mr. Secretary:
By virtue of the authority vested in me by law I hereby allocate
from the appropriation entitled "Emergency Fund for the President,
National Defense, 1942-44,"
To
Amount
War Refugee Board
$1,000,000
to be expended by said Board in connection with emergencies affecting
the national security and defense for carrying out the functions of
the Board as prescribed by Executive Order 9417 of January 22, 1944.
The funds hereby allocated shall be available, without regard to
Section 3709 of the Revised Statutes (41 U. S. C. 5), for all
necessary expenses of the War Refugee Board in carrying out
Executive Order 9417, including employment of persons (including
aliens) or organizations, by contract or otherwise, in the District
of Columbia and elsewhere without regard to the civil service and
classification laws; acceptance and utilization of voluntary and
uncompensated services; transportation expenses outside the United
States without regard to the Standardized Government Travel Regula-
tions; actual transportation and other necessary expenses, and not
to exceed $10 per diem in lieu of subsistence, of persons serving
while away from their permanent homes or regular places of business
in an advisory capacity to or employed by the Board without other
compensation from the United States; purchase and exchange of law
books and books of reference; purchase of or subscription to
newspapers and periodicals; purchase of food, clothing, and medical
supplies within or outside the United States; cash payments to and
for the benefit of victims of war, without the necessity for cash
receipts where receipts are not obtainable; purchase, without
regard to statutory limitations as to price, maintenance, operation,
repair, and hire of motor-propelled or horse-drawn trucks and passenger-
carrying vehicles; payment of premiums on fidelity or other bonds for
employees or others engaged in carrying out the purposes hereof;
advances of monies without regard to Section 3648 of the Revised
Statutes (31 U. S. C. 529); exchange of funds without regard to Sec-
tion 3651 of the Revised Statutes (31 U. S. C. 543); printing and
binding without regard to Section 11 of the Act of March 1, 1919
(44 U. S. C. 111); and the reimbursement of other appropriations
Regraded Unclassified
120
- 2 -
from which payment may have been made for the purposes hereof:
Provided, That not to exceed $500,000 of the funds hereby allocated
shall be available for objects of a confidential nature and shall
be charged against the limitation for such purposes under said
appropriation, and shall be accounted for solely on the certificate
of the Executive Director of the Board.
Please arrange for the necessary transfer of funds and
advise the War Refugee Board accordingly.
Sincerely yours,
/8/ Franklin D. Roosevelt
The Honorable
The Secretary of the Treasury
Regraded Unclassified
121
February 2, 1944
Accompliahments to date
1. We have worked out with the World Jewish Congress a program
to evacuate refugees from France into Spain, Switzerland and
North Africa and from Rumania. Appropriate licenses have
been granted authorising the necessary operations.
2. We have worked out with the JDC a program to evacuate 5,000
to 6,000 abandoned children from France and to sustain their
lives, pending evacuation. Licenses have been granted per-
mitting these operations up to & total cost of $600,000 for
the next six months. An initial remittance of $200,000 has
been sent to the JDC representative in St. Gall, Switzerland,
and operations are now under way.
While some of these children may be evacuated to Spain, the
majority will probably have to be evacuated to Switzerland.
Before Switzerland will agree to admit the children, it re-
quires receipt of assurances from some other government that
the children will be reevacuated after the war. The Treasury
is working on a method whereby the necessary assurances can
be given by this Government.
3. We have worked out a program to evacuate Jews from Poland to
Hungary. The Union of Orthodox Rabbis of the United States
and Canada has been authorised to communicate with and to
send funds to persons in Hungary who are in a position to
assist refugees across the Hungarian borders into Hungary
where a Jewish community of over 1,000,000 people is ready
to help and absorb the refugees into the Hungarian economy.
$100,000 has been sent to Switzerland to cover these opera-
tions. With State's approval, direct transfers of free ax-
change into enemy or enemy-occupied territory have been
authorized for this program, if it is impracticable to obtain
the necessary local currency in Switzerland or in Hungary
against payment after the war from & blocked account. Thus
we have obtained State's approval of a practical and effective
method to finance underground operations.
4. We have sent a message to our representative in the Vatioan
giving the necessary assurances that funds will be forthcoming
for the immediate relief of destitute Jews in Rome. This will
enable relief activities on behalf of these Jews to begin at
once.
Regraded Unclassified
122
- 2 -
5. We worked out the financial details of a program handled by
the JDC for the purpose of evacuating refugees from Spain to
Palestine. 600 of these refugees have already left Lisbon on
the "Nyassa." We are now working on a plan to have the "Nyassa",
after it transports these persons to Halfa, Palestine, go to
Constansa, Rumania to pick up a group of refugees there.
6. We worked out with the JDC a. program to bring relief to refugees
in Transnistria. Funds have been sent by the JDC to the Inter-
national Red Cross delegate in Ankara for the purchase of 250
tons of foodstuffs in Turkey, to be distributed among the in-
ternees by the International Red Cross. We are presently
working on an expansion of this program so às to provide food
distributions to internees in Thereisenstadt, Yugoslavia and
Greece.
7. We have sent an urgent message to the International Red Cross,
Geneva, stating that the War Refugee Board is prepared to see
that funds are made available at once to the International
Red Cross to provide food and medicines to persecuted groups
in German-occupied areas who are denied the facilities avail-
able to the rest of the population.
8. We are working with the World Jewish Congress on a program
to evacuate Jews from Transnistria to Rumania in order to move
them from the path of the retreating German army. It is be-
lieved that thousands of Jews can be saved from death in Trans-
nistria. In fact, we have just received a report that 6,400
internees, including 400 children, have already been evacuated
from Transnistria to Bucharest and that 500 more are expected
to be moved in the next few days. In addition, 200 Polish
refugees have been moved from Bessarabia to Bucharest. These
operations appear to have been handled with the cooperation of
the Rumanien Government.
9. $100,000 has been received by the Treasury, as private contri-
butions for the work of the War Refugee Board.
LO. At our suggestion, the Department of State has sent very
strong instructions to our Missions in the four neutrals,
London and Turkey, repeated to all other Missions, informing
them of the new Board and requesting full cooperation in
effecting the policy of the Government as stated by the
President.
11. We have furnished the War Department with suggested instructions
to the appropriate Theater Commanders asking the latter to dè
Regraded Unclassified
- 8 -
123
everything possible, consistent with the successful prosecution
of the war, to effectuate the Government's policy to take all
measures to rescue the victims of enemy persecution.
2. The Secretary of the Treasury has sent messages to the Treasury
representatives in London, Stockholm, Ankara, Lisbon, Caire
and Algiers asking them to do everything possible to assist
their Missions in carrying out the policy of immediate rescue
to the victims of enemy persecution.
13. We drafted a cable to London which was sent by the State Depart-
ment requesting Ambassador Winant to discuss the situation with
the British and suggest to them that they send instructions to
their Missions along the same lines as the instructions to our
Missions.
14. We have been in touch with the following organizations who are
working out specific operations and programs with us:
American Friends Service Committee
World Jewish Congress
American Jewish Joint Distribution Committee
American Jewish Conference
American Jewish Committee
Jewish Labor Committee
Unitarian Friends Service Committee
Emergency Committee to Save the Jews of Europe
Hebrew Sheltering and Immigrant Aid Society
One of the problems is to get all the groups, particularly the
Jewish groups, to work together and to stop fighting among
themselves. We are working with the various groups to this end.
15. We are working with UNRRA on the problem of making use of the
Fedhala camp in North Africa which has room for several thousand
refugees.
16. We are submitting to the War Department a program for the resous
of some 1,500 refugees on the Adriatio Island of Rab.
17. We are working on a propaganda program for submission to OWI.
Such a program will envisage shortwaving to Germany and occupied
Europe the true facts with regard to the German atrocities and
the determination of this Government to punish the perpetrators.
"H:JWPehle:1hh 2/2/44
Regraded Unclassified
124
Clippings
A
Accomplishments
B
Agenda prepared by State Department and used at
first meeting of War Refugee Board.
C
Executive Order and Press Release
D
Memorandum re: John W. Pehle
E
Big names
F
Allocation of President's Funds
G
Regraded Unclassified
Regraded Unclassified
126
THE WASHINGTON DAILY NEWS
Tuesday, January 25, 1944
Rescue the Refugees!
May
Rarely has the President made a more desirable and
popular move than his appointment of the Secretaries
of War, State and Treasury as a war refugee board to
rescue as many as possible of Hitler's victims.
The fact that the Senate Foreign Relations Com-
mittee approved unanimously the Gillette-Taft-Baldwin-
Rogers proposal for a similar board indicates how far
this issue transcends partisan, political or racial consider-
ations. The object is purely humanitarian: to save the
persecuted minorities who have escaped death but are
in peril.
Though all minorities properly are covered by the
President's order-political as well as racial and reli-
glous-the largest number are the Jews. They have been
singled out by the Nazis for mass extermination. An
estimated two million European Jews already have been
wiped out. Perhama Your million remain. They are home-
less. Those who are not murdered outright, and who
escape destruction by torture, face death by starvation
and neglect.
The rescue job is difficult but by no means impos-
sible, because many are still in the satellite countries.
Thus when Sweden offered a temporary haven 6000
Danish Jews promptly got out. This week about 850
are being taken by ship from Portugal and Spain to
Palestine, thus making room for others to come into
those transit countries.
But only an active official agency, backed by money
and power, can arrange the intricate international facili-
ties to rescue several hundred thousands instead of the
few hundreds now escaping. Many can be taken out of
France, Hungary, Rumania and Bulgaria to temporary
havens, which the board can set up in Portugal, Spain,
North Africa, Turkey, Switzerland and Sweden. Palestine
probably could care for half a million for the duration
of the war If the British government would permit it.
This new board must not be allowed to limp along
without effective action; like so many earlier efforts,
including those of the Bermuda conference and the inter-
governmental refugee committee. Time is short. The
need is desperate.
Regraded Unclassified
127
wash. Post 1/28/44
Roosevelt Moves
On Behalf of Jews
U.S. Departments
Told to Extend
Refugee Help
An the Associates Press
President Roosevelt created a
War Refugee Board last night and
directed it to attempt the rescue of
"the victims of enemy oppression
who are in Imminent dangel
of
death."
The board consists of the Secre-
taries of State, Treasury and War,
who are empowered to appoint a
full-time executive director to ad-
minister the refugee assistance
program.
A White House statement said
the President's action was de-
signed to bring about immediate
rescue from the Nazis of "as many
as possible of the persecuted mi-
norities of Europe-racial, relig-
lous or political-all civilian vic-
tims of enemy savagery."
The White House said that Mr.
Roosevelt stressed that it was ur-
gent for action to be taken at once
"to forestall the plan of the Nazis
to exterminate all the Jews and
other persecuted minorities
In
Europe."
Decision as to how the goal
could be accomplished was left to
the board. It could, perhaps, make
use of the International Red Cross,
neutral diplomatic missions, or
even underground movements in
occupied lands.
Mr. Roosevelt stated, the White
House said, that he expected to
get the cooperation of all the
United Nations and other foreign
governments in the program.
The State Department was di-
rected to appoint special attaches
with diplomatic status, on recom-
mendation of the board. to be sta-
tioned at spots where help might
be rendered to war refugees.
The board will be charged not
only with developing plans for the
rescue of oppressed peoples, but
also with working out measures
for their transportation, mainten-
ance and relief and for setting up
"havens of temporary refuge."
Regraded Unclassified
128
1/23/44
THE NEW YORK TIMES
ROOSEVELT SETS UP
estimated last year that about 16.-
"shall Include, without limitation,
gees In the past has been that Ger-
000,000 Europeans had been made
the development of plans and pro-
many might be able to smuggle
grams and the insuguration of ef-
out spics and saboteurs along with
refugees by Nazi action.
fective measures for (a) the res-
the bona fide refugena liberated
The policy of our Government
WARREFUGEEBOARD
cue, transportation, maintenance
through negotiation. The Presi-
toward the refugee problem was
and relief of the victims of enemy
dent's instruction that "havens
stated in the preamble of the
oppression, and (b) the establish-
temporary refuge" be catablished
President's Executive Order, as
ment of havens of temporary ref-
for refugees was taken to mean,
follows:
"It is the policy of this Govern-
uge for such vietims."
however, that they would go to
areas where Nazi agents would be
Hull, Morgenthau and Stimson
ment to take all measures within
Diplomatic Status for Aldes
of little value to the enemy.
its power to rescue the victims of
It said also that the State De-
Negotiations for the release of
Are Directed to Aid Rescue
enemy oppression who are in im-
partment shall appoint "special at-
refugees in areas yet to be lib-
minent danger of death and other-
tachés with diplomatic status" on
erated presumably would be con-
of Victims of Axis Rule
wise to afford such victims all
the recommendations of the board,
ducted through the Swiss or other
poesible relief and assistance con-
and that these shall be "stationed
neutral governments.
sistent with the successful prose-
abroad in places where It in likely
It la thought that relief, which
cution of the war."
that assistance can be rendered to
can be supplied through private
FOR 'IMMEDIATE' ACTION
Cooperating Agencies
war refugees."
contributions to the board, as we
"The board and the State, Treas-
A White House statement said
as with public funds, probably will
that while the President "would
ury and War Departments are au-
be handled through the Interna
look directly to the board for the
thorized to accept the services or
tional Red Cross.
Pre nt Urges Forestalling
contributions of any private per-
successful execution of this policy,
Plan 'to Exterminate All
the board, of course, would co-
sons, private organizations, State
operate fully with the Inter-Gov-
agencies or agencies of foreign
ernmental Committee, the United
governments in carrying out the
Jews and Other Minorities'
Nations Relief and Rehabilitation
purposes of this order," the Presi-
Administration and other Inter-
dent directed.
ested international organizations."
or the four American represent-
Special to THE New TORS TIMES.
More than being an isolated
atives to the Anglo-American Con-
WASHINGTON, Jan. 22-Presi-
American move, the President said
ference on Refugee Problems at
dent Roosevelt set up by Execu-
that he expected to obtain the co-
Bermuda last spring, only one
tive Order today a War Refugee
operation of the United Nations
would appear to be available for
Board "to take action for the im-
and other foreign governments in
the position of executive director
mediate rescue from the Nazis of
carrying out what the White
of the board. He is R. Borden
House called "this difficult but im-
Reams of the State Department,
as many M possible of the perse-
cuted minorities of Europe, racial,
portant task."
40 years old. The others were
The President stressed. said the
President Harold Willis Dodds of
religious or political, all civilian
White House statement. "that it
Princeton University, Senator Scott
victims of enemy savagery.'
The board, which la directly re-
was urgent that action be taken
Lucas and Representative Sol
sponsible to the President, is com-
at once to forestall the plan of
Bloom.
prised of Secretary Hull, Secretary
the Nazia to exterminate all the
Morgenthau and Secretary Stim-
Jews and other persecuted minori-
son. They will have a full-time
time in Europe."
The President's order said that
executive director.
The Foreign Policy Association
the functions of the new board
Regraded Unclassified
129
The Star, January 23, 1944
President Names Special Board
All Agencies Must
It shall be the duty of the heads
To Rescue European Refugees
of all agencies and departments to
supply or obtain for the board such
information and to extend to the
By J. A. FOX.
restricted authority to develop plans
board such supplies, shipping and
President Roosevelt yesterday
and Inaugurate "effective measures
other specified assistance and facill-
created a War Refugee Board and
for (a) the rescue, transportation.
ties as the board may require in
directed It to join with other or-
maintenance and relief of the vic-
carrying out the provisions of this
ganizations of similar purpose to
time of enemy oppression, and (b)
order," the President directed. "The
the establishment of havens of tem-
State Department shall appoint ape-
speed the rescue and relief of
clal attaches with diplomatic status,
persecuted minorities in Nazi-
porary refuge for such victims."
on the recommendation of the board,
dominated Europe-"all civilian
A white House statement accom-
to be stationed abroad in places
victims of enemy savagery."
panying the order said the Presi-
where it is likely that assistance can
"It 5 the polley of this Government
dent "stressed that It was urgent
be rendered to war refugees, the
in lake all measures within Its power
that action be taken at once to fore-
dutles of such attaches to be de-
in rescue the vietims of enemy op-
stall the plan of the Nazia to ex-
fined by the board in consultation
pression wivi are in Imminent danger
terminate all the Jews and other
with the State Department."
of deach and otherwise to afford
persecuted minorities of Europe"
AL a House Foreign Affairs Com-
mittee hearing in November, when
such victima nill possible relief and
There was, however, nothing to In-
a resolution was under discussion to
asistance consistent with the suc-
dicate the manner in which the
authorize Mr. Roosevelt to create a
Imfül prosecution of the war," the
problem may be attacked
commission to work out a plan for
President said in the order setting
The board was directed to seek
saving the Jewish people of Europe
IP the board. which consists of the
the co-operation of foreign govern-
from extermination, Breckenridge
coretaries of War, State and the
menta in carrying out the program.
Long, Assistant Secretary of State,
reasury
while the State, War and Treasury
said 580,000 refugees from Hitler's
The board, to be directly respons-
partments were named speci-
reign of persecution had found
ta the President, is to have un-
haven in this country. He added
(See REFUGEES, Page
that "we are ready to take all new
retugees who come out of France
fically as the agencies which will
or out of other occupied territory.
Spain will assist them."
execute it.
Mr. Long said that inadequate
The order also provides that "the
transportation Is the main barrier
services or contributions of any
to further movement of these peo-
private persons, private organiza-
ples, and that immigration quotas
Hons, State agencies or agencies of
have not been filled. The American
foreign governments" may be BC-
and British governments are shar-
cepted to facilitate the program. It
ing equally the cost of this aid.
added:
The House Committee has never
"The board shall co-operate with
acted on the resolution.
all existing and future international
The Anglo-American refugee con-
ference in Bermuda last spring was
organizations concerned with the
understood to have been convinced
problems of refugee rescue, main-
that a large-scale movement of op-
tenance, transportation. relief, re-
pressed peoples from Europe was
habilitation and resettlement."
ast of the question both because
No Illint of Financing Plan.
the transportation problem and Ce
The White House statement sald
Repossibility of negotiating with
enemy
that "the board, of course would CO-
operate fully with the Intergovern-
mental Committee (which was the
outgrowth of the International Ref-
ugee Conference held at Evian,
France, In 1938), the United Nations
Rellef and Rehabilitation Admin-
istration and other interested inter-
national organizations."
Neither the statement, nor the
order creating the board, unvo any
hint of the extent of Government
financing which might be required
for the new setup, nor was there
any reference to a prospective re-
quest for IL congressional appropria-
tion.
While fullest use is to be made of
the facilities of the State, Wag and
Treasury Departments, the brder
also specifies that "within tipe Ilm-
its of funds which may be avail-
able." the board is to provide for
such personnel and services as are
"Decessary to discharge Its responsi-
billtles." An executive director will
be the administrative officer.
Regraded Unclassified
Washington Post, 1/25/44
130
Call Of Humanity
plete extermination of the Jew all over
Europe." The new measure is the other step
The President has forestalled certain
the Iowan had in mind in that It contem-
action in Congress in behalf of the threat-
plates rescue and hospitality in special
ened Jews in Nazi-occupied Europe. He
reservation camps in neutral and other ter-
has set up a War Refugee Board to attempt
ritory. When the new agency sets up the
the rescue of "the victims of enemy oppres.
centers to which the Jews can escape, there
will be that much more encouragement to
sion who are in imminent danger of death."
the Jews to escape Hiller's tolls.
This decision follows the initiative of Sena-
We hope the President will also be fore-
tor Gillette, whose resolution to the same
handed in the matter of feeding the starving
effect had already been reported out by the
people of occupied Europe. A resolution
Foreign Relations Committee, and was on
calling upon the administration to facilitate
the calendar for Senate debate this week.
this humanitarian measure is going through
Congress. It should be speeded up, If the
similar resolution introduced by Repre-
President will not cut short its career by
sentatives Will Rogers and Joseph C. Bald-
adopting its purpose. There is not the
win was on its way through the House.
slightest reason any more to bar mercy ships
Passage by an overwhelming majority had
to Europe. The war will be won by military,
been indicated. The Industrious spadework
not economic, means, and when this was
done by the Emergency Committee to Save
realized, the major reason for opposition to
the Jewish People in Europe had contributed
this act of charity completely disappeared.
to this prospect, and the committee is like-
We won't say it was wicked to hold out
wise entitled to credit for the President's
against action. It was simply stupid, an
forehanded move. The proponents of the
example of how the mind fails to keep pace
legislative resolutions, who are drawn im-
with the facts. No cost to this country would
partially from both parties in Congress, will
be involved in authorizing mercy ships to
no doubt welcome presidential action with-
go to the beleaguered countries. The food,
out reservation. Perhaps they would have re-
the ships and the personnel will all come
phrased the title to exclude the word refu-
from neutral countries. After the experi-
gees, for, after all, the congressional aim was
ence in Greece, where outside aid has saved
that steps should be taken before the Jews
thousands of lives, there is no further excuse
become refugees. But the purpose in estab-
for a moment's delay in authorizing aid,
lishing the new boards embraces the object
Now that the President has anticipated
of the resolutions, and that is the main thing.
congressional action in behalf of the Jews,
The new board will be composed of Sec-
he should anticipate congressional action In
retaries Hull, Morgenthau and Stimson. An
behalf of the children of Europe, for It is
executive director will be appointed, and
the children who would be benefited most.
this, of course, will be the key post, to be
NO greater tragedies have been recorded in
filled, presumably, by a person of both dis-
civilized history than those which are now
tinction and energy. He is assured in
stirring our Congress.
advance of maximum cooperation by the
State Department. The department atready
has been directed on recommendation of the
board to appoint special attaches with dip-
Jomatic status, to be stationed in places where
sid could be given to war refugees pending
the development of permanent plans. Little
can be done, of course, to stop the mass
killing, which, according to the Archbishop
of Canterbury is going on at the rate of
10,000 Jews a day. But, as Senator Gillette
has said, the murderer's hand might be
stayed if the Big Three were to indicate that
their recent statement on atrocities applied
equally to the Jew extermination program.
It should have been done immediately after
Hitler's New Year declaration that "our
hole life, our efforts, and our existence
must he diverted to only one end: the com-
Regraded Unclassified
131
Wash. Star
1/24/44
Morris Praises Naming
Of War Refugee Board
President Roosevelt's action in
naming a. War Refugee Board to
forestall further executions of Jews
and other subject peoples in Nazi-
dominated areas was praised today
in a statement by George M. Morris,
chairman of the Washington Emer-
gency Committee to Save the Jewish
People of Europe.
This step, the statement said, will
serve notice on the Axis satellite
nations to halt further deportation
of Jews to the death chambers of
Poland.
"We hope." Mr. Morris sald, "that
the board will not lose sight of the
necessity of the earliest possible
action and will employ every neces-
sary measure to make is clear to the
Godless Nazis and their satellites
that this Government and its people
are determined, as the President
pointed out, to forestall the plan of
the Nazis to exterminate the Jews.'
"We welcome the appointment to
this board of such eminent Amer-
icans as Secretaries Hull, Stimson
and Morgenthau, and we are happy
to place at their disposal the facil-
ities of the Washington Emergency
Committee to Save the Jewish
People of Europe."
Regraded Unclassified
71d
132
The Evening Star
JAN 28 1944
Asked to Assist
S. Diplomatic Corps
In Saving Jews
BY the Associated Press.
President Roosevélt's newly-
created War Refugee Board said
last night it had called on all
American diplomatic officers to try
at once to save Europe's Jews from
Nazi terrorism.
Composed of Secretary of State
Hull, Secretary of the Treasury
Morgenthau and Secretary of War
Stimson, the board added that other
governments would be asked to co-
operate in the program outlined by
Mr. Roosevelt last Saturday.
Specifically, American diplomatic
and consular officers were directed
to report on existing conditions, in-
cluding "information as to the per-
mission granted to war refugees to
enter each country, the encourage-
ment and co-operation given to such
entry and the extent to which each
country does not co-operate in per-
mitting entry. Where refugees are
refused entry at frontiers. the facts
and reasons for such actions have
been requested.
"Recommendations as to possible
lines of action have been asked with
notation of special obstacles which
may handicap rescue operations and
methods of overcoming such ob-
stacles."
Representatives of both major
political parties joined in the House
yesterday in expressing the desire
that the United States "use its good
offices" In opening the doors of
Palestine to refugee European Jews.
Representatives Wright, Democrat,
of Pennsylvania and Compton. Re-
publican. of Connecticut introduced
identical resolutions containing this
Idga, and both floor leaders, Repre-
segtatives McCormack, Democrat of
Missachusetts and Martin. Rejub-
licin. of Massachusetts, asked hat
It be adopted as "the policy of our
country in the light of the Njern
realities of the presenti hour."
Regraded Unclassified
133
The Evening Star
IAN 29 1944
To Help the Hunted-
Made up of Secrétaries Hull, Mor-
genthau and Stimson, the Presi-
dent's new War Refugee Board may
spell the difference between life and
death for thousands of Europeans,
especially for the Jews trapped in
countries either occupied or domi-
nated by the Nazis. As Americans,
living in a land free of terror, we
may at times feel that there is some-
thing unreal about the stories of
wholesale atrocities committed un-
der Hitler and Himmler. But the
terrible truth is that these things
have happened and are continuing
to happen. The leveling of the
Lidices, the mass slaughtering of in-
nocent hostages, the systematic
program to undermine the birth rate
in Poland and elsewhere-all this
and worse besides are fearful actu-
alities. As far as the Jews are con-
cerned, for example, responsible
quarters have estimated that as
many as 3,000,000 of them have al-
ready been murdered by the Nazis,
and many more are likely to go the
same way unless something is done
to save them. The problem Is by no
means an easy one, but the War
Refugee Board, with the facilities of
the State, Treasury and War De-
partments at its disposal, is equipped
to do at least enough to make
the horror less horrible than it is.
Through diplomatic pressure and
open warnings It can discourage
Hitler's satellites from collaborating
in the pogroms and persecutions,
and It may
able to rescue a
substantial number of the potential
victims by finding shelter for them
in neutral countries. In any event,
as President Roosevelt has declared
in creating it, the board Is a promise
to the hunted and oppressed that
the United States intends to do
everything possible to help them-
and "everything possible" is not too
much: If we did anything less, we
would be falling short of our respon-
sibilities as a great Nation rich in
the traditions of humanitazianism
Regraded Unclassified
718
The New York Times.
134
JAN 30 1944
Roosevelt Board Is Negotialing
To Save Refugees From Nazis
Epecial te THE the York Times.
WASHINGTON, Jan. 29-The
"For the purpose of carrying out
new War Refugees Board, meeting
this policy, the President's Order
four days after its establishment
a War Refugee Board com-
by President Roosevelt, said today
posed of the Secretary of State,
that negotiations were under way
the Secretary of the Treasury. and
the Secretary of War. This board
with foreign Governments to de-
la responsible to the President,
termine the extent to which they
and to it in assigned the responst-
were willing to cooperate in res-
bility for carrying out the policy
cuing Jews and other victims of
above announced. While the board
Nazi aggression.
is responsible directly for gwing
The board made its announce-
effect to the policy, it in directed
to work with UNRRA, the Inter-
ment through the Treasury, pend-
Ing the setting up of its own organ-
Governmental Committee, and
ization, following its first meeting
other appropriate intil ational br-
held on Wednesday. Secretaries
ganirations
Hull, Morgenthau and Stimson,
"The President madent clear that
who comprise the board, were all
in dealing with this important and
present.
difficult problem be expected to
Beyond their statement that for-
have full cooperation from the
eign Governments were being ap-
governments of the United Nations
proached to ascertain the extent
and other foreign governments.
to which they were prepared to co-
The President emphasized the ur-
operate, the board said that all
gent necessity of frustrating the
United States replomata and con-
Nazi design to exterminate Jewish
sulsh officers throughout the world
and other minority groups in Eu-
hard been Instructed " do every-
rope.
thing possible to effectuate this
Wide Cooperation Sought
Government's war-refugee policy
"Cooperation was directed with
as announced by the President,
all public agencies and established
bearing in mind the urgency of the
private organizations in the res-
problem."
cue areas from those officers who
In its announcement of actions
are dealing with this problem to
taken, the board said that diplo-
the end that effective programs
matie and consular officers had
and measures for relief, rescue,
been directed to cooperate "with
maintenance, and transportation of
all public agencies and established
persecuted victims may be devel-
private organizations In the rescue
oped and carried out. Immediate
areas."
reports relating to the situation
The board said the diplomatic
existing in the countries of the re-
and consular officers had been re-
spective officers have been re-
quested to make "Imiliediate re-
quested, which should include in-
ports concerning conditions exist-
formation as to the permission
ing in each country with regard to
granted to war refugees to enter
each country, the encouragement
whether refugees would be permit-
and cooperation given to Such
ted to enter, and, where refugees
entry, and the extent to which ach
were refused entry at frontiers, ex-
country dode not cooperate in per-
planations why they were refused.
mitting entry.
The board's announcement cov-
"Recommendations as to possi-
ered the following points:
ble lines of action have been asked,
"All missions were advised that
with notation of special obstacles
which may handicap rescue opera-
instructions had been traped by the
tions and methods of overcoming
President to the Secretary of
such obstacles.
Staje, the Secretary of the Treas-
"Foreign governments are being
ury and the Secretary of War to
approached to ascertain the extent
endeavor to effect immediately the
which they are prepared to
cooperate."
rescãe and relief of Jews E Europe
and of other victime of Nazi terror.
Regraded Unclassified
135
The New York Times.
FEB 1 - 1944
A BEGINNING OF RESCUE
The War Refugee Board created by
Prijsident Roosevelt has a difficult task
before it, as the executive order points
out. The task is to do what can be
done, consistent with fighting and win-
ning the war, to rescue as many as pos-
sible of the persecuted minorities of
Europe from Nazi savagery.
In this effort Secretaries Hull, Mor-
genthau and Stimson will have strong
American support. In time the coop-
eration of other United Nations and
neutral Governments is expected. Mean-
while, working with such national, in-
ternational and private relief agencies
as have already been set up, we have
begun the job.
What can be done is problematic,
total war being the heartless thing that
it is. Large-scale aid for Hitler's 16,-
000,000 homeless victims must clearly
wait until the conflagration can be con-
trolled. To appeal to the Nazis in the
name of humanity is futile. While the
flames of their hatred still rage in all
corners of Europe the rescuers can do
little more than carry out the compara-
tively few sufferers that can be reached.
We may be sure that all measures
within the power of this Government
will be taken. For a beginning, the
stranded people who huddle in terror in
the ports now available to our ships can
be removed to temporary havens out-
side Europe, where they can be fed and
clothed. To that extent, at least, the
Nazi lust for extermination can be
balked while we get on with the prigne
and Stanic business of crushing the
forces that have brought this hor or
upon the world.
Regraded Unclassified
136
Herald Tribune
1- 1-29-44
Revolutionary Methods
Are Urged to Save Jews
Two World Leaders Make Plea
in Talk in London
From the Herald Tribune Bureau
Copyright, 1944, New York Tribune Inc.
LONDON, Jan. 28.-Pleading for
revolutionary methods for rescuing
the European Jewry from Nazi
tyranhy, Dr. Nahum Goldmann,
and Dr. Arich Tartakower, mem-
are States executive that told bers now a of the press War the highest placed committee World conference Refugee in hopes Jewish the in Board. new of here New the Congress United today York, Jews
President expression "The creation Roosevelt of the of determination this and board his is ad- an of
ministration to organize energetic
action to save European Jews,"
they said.
Dr. Goldmann asserted that
much that has been done in the
past has been neutralized by the
routine methods employed. "Only
Immediate radical action and revo-
lutionary methods can cope with
the gigantic task of saving those
who have so far survived Nazi ter-
ror," he said.
Regraded Unclassified
137
Herald Tribune
1- 29- 44
$100,000 Gift Received
By War Refugee Board
Donated by Hebrew Sheltering
and Immigrant Aid Society
From the Herald Tribune Buresu
WASHINGTON, Jan. 28.-Re-
celpt today of a check for $100,000
from the Hebrew Sheltering and
Immigrant Aid Society of New
York for the War Refugee Board
net up last week by President
Roosevelt to assist victims of Nazi
oppression. was announced to-
night by Henry Morgenthau Jr.,
Secretary of the Treasury.
The check. second to be received
by the board. which, besides Mr.
Morgenthau. consists of the Sec-
retaries of War and State, will go
a long way toward settlar up tem-
porary havens for refugees, he
said. The first contribution was
$10 from a Jewish refugee couple
now settled in the United States.
The $100,000 check was signed
by Abraham Herman, president of
the New York society, who wrote:
"We are pleased to send you here-
with our check for $100,000 as a
contribution toward furthering
your efforts to save the victims of
enemy oppression and the estab-
lishment of havens of temporary
refuge for such victims."
At the same time Mr. Herman
wrote President Roosevelt of the
"profound appreciation" of the
society for the setting up of the
refugee board and said the action
"has evoked nation-wide approval
and enthusiasm in which we most
heartily join."
Regraded Unclassified
138
NEW
YORK
Herald
Tribune
FEB 1 - 1944
A War Refugee Board
By his appointment of a War Refugee
Board "to take action for the immediate
rescue from the Nazis of as many as 108-
sible of the persecuted minorities of Eu-
rope," the President silences once and for
all enemy propaganda to the effect that the
United Nations are not concerned with their
fate-not, in particular, with the fate of the
Jewish people. For the President expressed
the expectation that the board would have
the co-operation of all members of the
United Nations and other foreign govern-
ments. To insure the board adequate powers
he appointed to It the Secretaries of the
State, Treasury and War Departments and
directed that the facilities of those depart-
ments be put at Its disposal.
It is a difficult task entailing rescue,
transportation, maintenance and relief.
How many victims can be saved from Ger-
many itself no one knows; but organiza-
tions in touch with underground groups in
occupied Europe are hopeful that many can
be rescued from, and perhaps through? the
Balkan satellite nations. Once tempolary
;amps have been set up to receive the relp-
fees In neutral or Allied nations, the board
will co-operate with the Inter-Governmen-
tal Refugee Committee and the United Na-
tions Relief and Rehabilitation Committee.
The President urged immediate concrete
action, an urgency dictated "to forestall
the plan of the Nazis to exterminate all the
Jews and other persecuted minorities in
Europe." The American lead in setting up
powerful machinery to obtain such action
will have wide approval. For growing re-
alization of the frightful lengths to which
the Hitler regime will carry its philosophy
of brutality has made a do-nothing policy
more and more untenable.
Regraded Unclassified
140
February 2, 1944
Accomplishments to date
1. We have worked out with the World Jewish Congress a program
to evacuate refugees from France into Spain, Switzerland and
North Africa and from Rumania. Appropriate licenses have
been granted authorizing the necessary operations.
2. We have worked out with the JDC 8 program to evacuate 5,000
to 6,000 abandoned children from France and to sustain their
lives, pending evacuation. Licenses have been granted per-
mitting these operations up to & total cost of $600,000 for
the next six months. An initial remittance of $200,000 has
been sent to the JDC representative in St. Gall, Switzerland,
and operations are now under way.
While some of these children may be evacuated to Spain, the
majority will probably have to be evacuated to Switzerland.
Before Switzerland will agree to admit the children, it re-
quires receipt of assurances from some other government that
the children will be reevacuated after the war. The Treasury
is working on 8. method whereby the necessary assurances can
be given by this Government.
3. We have worked out a program to evacuate Jews from Poland to
Hungary. The Union of Orthodox Rabbis of the United States
and Canada has been authorized to communicate with and to
send funds to persons in Hungary who are in a position to
assist refugees across the Hungarian borders into Hungary
where a Jewish community of over 1,000,000 people is ready
to help and absorb the refugees into the Hungarian economy.
$100,000 has been sent to Switzerland to cover these opera-
tions. With State's approval, direct transfers of free ex-
change into enemy or enemy-occupied territory have been
authorized for this program, if it is impracticable to obtain
the necessary local currency in Switzerland or in Hungary
against payment after the war from 8. blocked account. Thus
we have obtained State's approval of a practical and effective
method to finance underground operations.
4. We have sent a message to our representative in the Vatican
giving the necessary assurances that funds will be forthcoming
for the immediate relief of destitute Jews in Rome. This will
enable relief activities on behalf of these Jews to begin at
once.
Regraded Unclassified
141
- 2 -
5. The worked out the financial details of & program handled by
ti.e JDC for the purpose of evacuating refugees from Spain to
Palestine, 600 of these refugees have already left Lisbon on
the "Massa." We are now working on a plan to have the "Nyassa",
after it transports these persons to Haifa, Palestine, go to
Constanza, Rumania to pick up a group of refugees there.
S. Tip worked out with the JDC a program to bring relief to refugees
in Transnistria. Funds have been sent by the JDC to the Inter-
national Red Cross delegate in Ankara for the purchase of 250
tona of foodstuffs in Turkey, to be distributed among the in-
lebnees by the International Red Cross. We are presently
morking on an expension of this program SO as to provide food
distributions to internees in Thereisenstadt, Yugoslavia and
Creece,
7. We have sent en urgent message to the International Red Cross,
Coneva, stating that the War Refugee Board is prepared to see
Phot funds are made available at once to the International
Red Cross to provide food and medicines to persecuted groups
in German-occupied areas who are denied the facilities avail-
chle to the rest of the population.
S. No are working with the World Jewish Congress on a program
to evacuate Jews from Transnistria to Rumania in order to move
them from the path of the retreating German army. It is be-
lieved that thousands of Jews can be saved from death in Trans-
mistria. In fact, we have just received a report that 6,400
internees, including 400 children, have already been evacuated
from Transnistria to Bucharest and that 500 more are expected
to be moved in the next few days. In addition, 200 P6lish
refugees have been moved from Bessarabia to Bucharest. These
sperations appear to have been handled with the cooperation of
the Rumanian Government.
8. $100,000 has been received by the Treasury, as private contri-
butions for the work of the War Refugee Board. A $10 contribu-
tion has also been received.
10. The Department of State has sent very strong instructions to our
Missions in the four neutrals, London and Turkey, repeated to all
other Missions, informing them of the new Board and requesting
full cooperation in effecting the policy of the Government 8.8 stated
by the President.
Regraded Unclassified
142
- 3 -
11. ::- have furnished the War Department with suggested instructions
to the appropriate Theater Commanders asking the latter to do
everything possible, consistent with the successful prosecution
12 the WBT, to effectuate the Government's policy to take all
mensures to rescue the victims of enemy persecution.
12. The Secretary of the Treasury has sent messages to the Treasury
representatives in London, Stockholm, Ankara, Lisbon, Cairo
tod Algiers asking them to do everything possible to assist
their Missions in carrying out the policy of immediate rescue
to the victims of enemy persecution.
18. No drufted a cable to London which was sent by the State Depart-
nent requesting Ambassador Winant to discuss the situation with
the Dritish and suggest to them that they send instructions to
their Missions along the same lines as the instructions to our
Missions.
14. lie have been in touch with the following organizations who are
working out specific operations and programs with us:
American Friends Service Committee
World Jewish Congress
American Jewish Joint Distribution Committee
American Jewish Conference
American Jewish Committee
Jewish Labor Committee
Unitarian Friends Service Committee (letter attached)
Emergency Committee to Save the Jews of Europe
Hebrew Sheltering and Immigrant Aid Society
National Council of Jewish Women
One of the problems is to get all the groups, particularly the
Jewish groups, to work together and to stop fighting among
themselves. We are working with the various groups to this end.
15. The are working with UNRRA on the problem of making use of the
Fedhala camp in North Africa which has room for several thousand
refugees.
18. Tie are submitting to the War Department a program for the rescue
of some 1,500 refugees on the Adriatic Island of Rab.
Regraded Unclassified
143
- 4 -
17. To are working on a propaganda program for submission to ONI.
Such & program will envisage shortwaving to Germany and occupied
Europe the true facts with regard to the German atrocities and
the determination of this Government to punish the perpetrators.
Regraded Unclassified
144
/
the
$ 5
the of
145
The World Jewish Congress representatives
have been interested for many months in working out a
program to evacuate refugees from France and from
Rumania. The financial aspects of the program were
developed by the Treasury and a license was finally
issued on December 18, 1943. In order to permit
certain relief operations (sustaining the lives of
the refugees pending evacuation) as well as the evacuation
operations, and in order to facilitate the acquisition
of the necessary local currency under certain specified
safeguards, the Treasury issued a new and broader
license to the World Jewish Congress in January 1944.
Operations in France have already commenced under this
license.
Regraded Unclassified
1050 74
146
PARAPERASE or TELEGRAM SEXT
REC'D JAN 29 1944
FROM: Secretary of state, Washington
TO:
AMERICAN LEGATION, BERN
DATED: January 20, 1944
NUMBER : 197
CONFIDENTIAL
Please inform Dr. Riegner of the World Jewish
Congress that license number W-2115 has been issued to
World Jewish Congress by Treasury Department, the sub-
stance of which license reads as follows:
(A) Notwithstanding General Ruling Number 11,
we hereby authorise your representative in Switzer-
land, together with such agents as he may appoint,
to communicate by any means which he may deem expe-
dient or necessary with persons tn Rumania and
France for the purpose of arranging the evacuation
to areas of safety of persons in Rumania or France
in imminent danger of their lives and to arrange for
the safeguarding and sustenance of such persons in-
til such evacuation is possible and to pursue any
other action which may be appropriate for said pur-
poses, including the payment of Rumanian lei or
French francs to persons in Rumania or France, as
the case may be, who may have provided either goods
or services in connection with the above. No auth-
orise the following two methods for the purpose of
acquiring the necessary French currency for the
purpose
Regraded Unclassified
147
- 2 -
Regraded Unclassified
purpose of financing the operations referred to above:
(1) Purchase of Rumanian lei or French france in
Switzerland, provided your representative is reasonably
certain that in the case of Rumanian lei the sellers
thereof have held such currency since before October 10,
1940 or, in the case of French franes, have held such
currency since before the fall of France, or if ac-
quired subsequent to said dates, that the seller has
acquired such currency in either case under the cir-
cumstances from which the enemy did not benefit,
your representative in such cases to consult with
the United States Legation in Bern when possible.
Sellers of such Rumanian or French currency may be
reimbursed in Swies france at the prevailing unoffi-
cial rate of exchange in Switserland; (2) Purchase of
Rumanian lei in Rumania, or elsewhere, and French francs
in France, or elsewhere, provided that reimburse-
ment therefor is not made until after the end
of the war. Reimbursement to the sellers of such
Rumanian or French currency subsequent to the war may
be insured by the establishment of & blooked account
on your books in the United States or such blooked
accounts may be in & bank in the United States or
Switzerland provided there shall be no assignment of
interest in such blocked account, or any payment from
such blocked account, unless the Treasury Department
specifically approves in each case.
(B)
140
- 3 -
(B) The total sums represented by claims established
against any blocked account, established in accordance
with this license, plus the SUR paid out there-
from, shall not exceed 428,000 Swiss franes, or the
dollar equivalent thereof, during the six months
beginning January 1, 1944.
(c) Your representative should fully report to the
United States Legation in Bern the financial trans-
actions completed pursuant to this license and your
representative should insure to whatever extent
possible that the sellers of Rumanian or French
currency are persons acceptable to the American
Legation in Bern. Your representative should be
satisfied that any payments made to such persons
will not be of benefit to the enemy.
(D) Periodic reports with regard to the operations
consummated under this license should be filed by
your representative with the American Legation in
Bern.
It is requested that you immediately revoke the license
which you issued to Dr. Riegner pursuant to our telegram of
December 18, 1943, Number 3168, such revocation being based
upon the Treasury's issuance of the foregoing license.
We
Regraded Unclassified
149
- 4 -
To invite your attention to the fact that the license
given above removes the differences between the license
previously issued to the World Jewish Congress in accordance
with our telegram Number 3168 and the license issued to
JDC, quoted in our cable of January 5, 1944, Number 39,
which differences were pointed out in our telegram of
January 5, 1944, Number 40. Furthermore the license given
above clarifies the procedure which should be followed by
Dr. Riegner in order to acquire Rumanian and French currency
to be used in relief and evacuation operations in France
and Rumania, Moreover it contains the necessary authorisa-
tions for the purposes mentioned in your wire of January 17,
1944, Number 362. It is also requested that you inform
Dr. Riegner that consideration will be given to requests
for an increase in the total amount of dollars for Swise
francs as set forth in paragraph (B) above.
These operations have been fully approved by the
Treasury and the Department.
HULL
cc - Messrs. Paul, Gaston, White, Pahle, Luxford, DuBois, B. M. Bernstein,
Schmidt, Fox, Eiss Hodel
Regraded Unclassified
38
150
PANAVERASE OF THIRDRAM
Secretary of State, Washington, D. C.
TO:
AMERICAN LEGATION, BERN.
26731
December 18, 1943
NUMBER: 3168
Please issue to Dr. Riagner of the world Jewish Congress, the following
license. Reference is made to Dern's 7141, November 14, and Department's
2373, September 28, and 2626, October 26, to sern.
"Dr. Riegner is hereby authorised to engage in the following
transactions notwithstanding General Ruling No. 11:
(A) To receive from the American Jewish Congress and/or
the world Jewish Congress in the United States, the equivalent
of $25,000 in Swice france, and to deposit the same in a bank
in Switserland, approved by the United States Legation in Barn,
in a blocked account in his name or in the name of the world
Jewish Congress, subject to the following provisions:
(1) No withdrawals shall be made from such
account, without the specific permission of
the Treasury Department of the United States.
(2) There shall be no assignment or any
transaction or dealing by any person, firm
or government whatsoever or, in respect of
any claim against or interest or expectancy
in such blooked account which may arise as &
result of the transactions permitted by this
license, unless and until specifically permitted
by the Treasury Department of the United States.
(b) Authorisation is hereby given to 15. Ringner to communicate
with any person in ensuy-ecoupied territory, and in any maint
as he shall deem necessary, desirable or expedient, in order to
accomplish the followings
Regraded Unclassified
151
Regraded Unclassified
- 2 -
(1) To choose, nominate and appoint in Rumania,
one or more agents of the world Jewish Congress.
(2) To take such action an my be necessary
to direct such agent to complete much arrange-
ments as say be appropriate and nec seary for
the acquisition of Rumanian surrency from per-
sons in Rumania, and with such funds 80 acquired,
to effectuate the evecuation of persons selected
by the said agent from Rumania, by any yeans
and to such places or destinations as the agent
shall, from time to time, dees possible under
the existing conditions.
(3) To authorise said agent, provided Dr.
Riegmer has received any necessary authorise-
tions and directions from the World Jewish
Congress or the American Jewish Congress, to
agree with any person who furnishes funds
pursuant to paragraph (b)(2) of this license,
that such person shall be allocated a claim
in an amount not exceeding the amount of the
funds 50 furnished (computed at the prevailing
rate of exchange on the black market in witcer-
land), which claim shall be subjected to the
provisions in paragraph (A) and (2)(5) of this
license.
(4) To authorize said agent, provided IF.
Riegner has received my necessary authorize-
time and directions from the World Jewinh
Congress OF the American Jewish Congress, to
agree with any person who furnishes services
with regard to the evacuation mentioned in
paragra (2)(2) hereof, that such person shall
be allocated 4 claim against the said blocked
account, in such amount as the said agent
shall agree upon, provided that such claim
shall be subjected to the provisions of para-
graph (A) and (D)(5) of this license.
(5) Any claim against said blocked account
referred to in paragraph (A) hereef shall
only be valid if Dr. Ringner or the said Agent
of the World Jewish Congress in Mumania shall
have certified the same.
(c) Authorisation is hereby given to Dr. Riegner
to comminicate with any person in enemy-oceupied
territory,and in any namer as he shall desc necessary
152
- 3 -
desirable or expedient, in order to accomplish the
following:
(1) To choose, neminate and appoint in France,
one or more agents of the World Jewish Congress.
(2) To complete any appropriate or necessary
arrangements either through said agent or
through any other person as be shall select,
for the purpose of acquiring French currency
from persons either in Switzerland or In France,
and with such currency to effectuate the evacus-
tion to Switzerland, Spain or North Africa from
France of any person whom he shall select whose
evacuation is found to be feasible, such ovacus-
tion to be accomplished by such means as shall
be found practical under the obtaining conditions.
(3) Nothrithstanding anything herein contained to
the contrary, authorization is hereby given to
Dr. Riogner to allow claims against the blocked
account established under paragraph (A) of this
license to be assigned, provided such claim
shall not exceed the value of French currency
acquired from persons in Switzerland, and further
provided that in consultation with the Legation
in Dern of the United States, Dr. Riegner is
reasonably certain that the seller of such
French currency has held the same since prior
to the fall of France, or has acquired sune
from dividends or investments in France (or
similar transactions) which investments or
transactions were not beneficial to the energy,
and provided further that such seller of French
currency is not in enemy national, as defined
in General Buling No. 11.
(4) Other than as set forth in paragraph (c)(3)
of this license, authorisation is hereby given
to Dr. Riegner to effectuate arrangements covering
reimbursements to persons furnishing French currency
and services, which arrangements shall be the BASE
in all respects as those provided in paragraphs (P)(3),
(24) and (0-5) herein above, with regard to persons
furnishing humanian currency and services.
Regraded Unclassified
153
Regraded Unclassified
(D) Expenditures for food and clothing necessary
to prepare persons who are to be evacuated pursuant
to the foregoing. for the journey to be undertaken
shall be included in the authorisation herein con-
tained.
(3) Dr. Riegner, shall, as closely as reasonably
possible, supervise any operations engaged in under
this license, of periodical reports shall be filed
by his with regard thereto with the Legation of the
United States in Bera, The possibility that funds
ultimately are acquired by persons who have non-
nished neither services nor lecal currency shall be
reduced to an absolute sinimum in carrying the AP-
rangements authorised herewnder into effect, all
setion shall be taken to make sure that, until after
the termination of the var, foreign exchange is not
nade available in emsay or enery-occupied territory.
To the best of his aMlity, Dr. Riegner is directed
to nake certain that all persons who supply currency
are acceptable to the Legation of the United States
in Bers,
Regraded Unclassified
155
After having received reports of the plight
of 5,000 - 6,000 abandoned children in France and
the dire need for funds to save their lives, we worked
out a program with the JDC, including the necessary
licenses, whereby arrangements could be made through
the JDC representative in Switzerland to sustain the
lives of the children and to work out through underground
channels, if necessary, schemes to evacuate the children
from France into Spain or Switzerland.
Regraded Unclassified
12/30/43
156
21
Copied from original which
Mr. Leavitt stated had been
handed to him by Mr. Travers
today.
F.M.
DEPARTMENT OF STATE
Washington
reply refer to
dear Mr. Leavitt:
I desire to confirm and to give you for your records
certain information which has been received from
Dr. Donald Lowrie.
The condition of the Jews in France becomes progress-
ively worse. As an example, in Nice the deportation of
more than 5,000 razzias continues. In Marseille and
Nimes and Perpigan, hundreds of families have been sent
to Drancy. At Toulouse the French militia are collaborat-
in with the German police in chasing the Jews and several
Jews have been exccuted after every assassination by French
partisans. Mass arrests have occurred and many Jewish
families have been compelled to abandon apartments [and]
given German families from barred districts in Dordogne,
Creuse and Haute Vienne.
All Jews who were seriously 111 and detained at the
St. Louis Hospital, Perpigan, as well as old people, wamen
and children residing in centers foreigners (?) social ser-
vice have been deported. East-bound transport comprised
1,500 persons from Draney was noted on November 20. The
Gestape persecutes Jewish social organisations and UGIF in
state dissolution.
After Lambert Baurstora, the late General Director,
Gaston Kahn and many high employees were transported to
Drancy; the Gestapo arrested Zadoe Kahn, the Director of
Rothebild's Hospital, Heilbronner, Consistary President
with
Mr. Moses do Leavitt,
The American Joint Distribution
Committee,
New York, New York.
Regraded Unclassified
157
- 2 -
with their families and camp commissioner, Sister Cain
Corpore. Five social assistants of OSE were lost while
attempting to save children at Nice and "Ell" deported.
According to the last news received on December 9,
the childrens help activities will /Yerm now or7 be con-
tinued in unofficled form; homes are in dissolution. It
is extimated that private families have received some 6,000
children.
It is urgently necessary to save additional 1,500
newly abandoned children, plecing them with fumilies. The
local finance organizations have been totally destroyed and
Dyka and Maurice are in hiding.
In order to facilitate resoue activities, no desire to
repeat an carlier request to endeavor to obtain promises
of visas for several thousand children hidden. in Prance or
refuges Sultserland.
Dr. Lewrie suggests that Lisbon should be kept fully
informed.
The information contained in the above telegrom is not
good news but I want you to know that anything the Department
can do to assist in rescuing those poor people will be done
and as I have nentioned to you verbally, de are continuing
our efforts on behalf of the children.
Sincerely yours,
/a/ Howard he Travers
Howard K. Travers
Chief, Visa Division
CC - Messrs. Paul, White, Pehle, Luxford, Duhois, Schmidt,
Fox, Miss Hodel
Regraded Unclassified
us T/E/-1 (Special)
License NO. - 21.06 150
TEACTHY DEPARTMENT
breign Funds Control
Date:
LICENSE
JAN 8 1944
=/
(CRANTED UNDER THE AUTHORITY OF EXECUTIVE ORDER NO. 8389
OF APRIL 10, 1940, AS AMERDED, AND THE REGULATIONS
ISSUED TRANSUNDER)
American Jewish Joint Distribution Condition
(Nama of Licenses)
270 Mulison Avenue, New York, N. T.
(Address of Licenses)
dre:
1. In order to arrange for the avacuation to places of sufety of persons in
trance whose lives APR in instruct danger and, penning possible svacuation, to sustain
nd safeguard the lives of such persons, your representative in Switzerland (including
web agents AS he na appoint) 10 hereby licensed notwithstanding the provisions of
eneral Ruling Mo. 11 to communicate with persons in France in any namer be decemb
ressary or expedient and to take all other appropriate action, including the payment
0 persons in France of French france for goods and services. The neessary French
rane funds to finance such operations may w obtained by either of the following two
sthodes
(a) The first method is the purchase of French france from persons in
Switzerland who your representative, after consulting with the
United States Logation in Derm when feasible, is reasonably certain
have held such French frenes since prior to the fall of France or
have since acquired such france in such manner as has not bunefited
the many. The sellers of sush france may be reimbursed therefor in
Swine france at the provailing unsfficial rate of exchange in
Switserland for French france.
(b) The second method 10 the acquisition of French france from persons
in France or elsewhere for which reinbursement will not be cade until
after the war. In order to insure reimbursement after the war to the
persons supplying such france, blocked accounts may be established -
your books in the United States, or in a tank in the United States or
a bank in Switserland. NO payments may be made from any such blocked
account without the specific approval of the Treasury Department and
no assignments may be made of any interest in such blooked assount
without such approval.
2. The total evacunt of dollars or Swine france paid our or set up in blocked
accounts or otherwise chligated under the 10TH of this license shall net expeed
4,300,000 Swine france, or the dollar equivalent thoreof, during the six months' period
reginning January 1, 1944.
3. Your representative should keep the Anerican Legation in Switzerland fully
informed with respect to the financial transactions effected under this license. In se
far AS feasible your representative should make certain that the persons from when the
rench france are purchased are acceptable so the Logation. Your representative should
hinself that payments to such persons will not benefit the ensy.
Regraded Unclassified
152
- 2 -
4. Puriodic reports with regard to any operations engaged in under this license
hould be filed with the Treasury Department by your representative through the United
tates Legation in Born.
5. This license is granted upon the statements and representations filed with the
treasury Department, and is subject to the conditions among others, that you will comply
a all respects with Executive Order No. 8389 of April 10, 1940, as amended, and the
egulations issued therounder and the terms of this license.
6. This license 18 not transferable, is subject to the provisions of Executive
rder No. 8389 of April 10, 1940, as amended, and the regulations issued thereunder and
By be revoked, modified, or declared void at any time at the discretion of the
scretary of the Treasury acting directly or through the agency through which the
icense was issued, or any other agency designated by the Secretary of the Treasury.
Table
J.W. Pehle
Assistant to the Secretary
Regraded Unclassified
200
22
160
CABLE TO BERN
Please transmit promptly to Saly Mayer, representative of the American
Jewish Joint Distribution Committee, St. Gall, Switserland, the following
which 18 the text of a license which has been issued by the Treasury Depart-
ment to the American Jewish Joint Distribution Committee: (Text of license
begins):
"1. In order to arrange for the evacuation to places of safety
of persons in France whose lives are in imminent danger and,
pending possible evacuation, to sustain and safeguard the
lives of such persons, your representative in Switserland
(including such agents as he may appoint) is hereby licensed
notwithstanding the provisions of General Ruling No. 11 to
comunicate with persons in France in any manner he deems
necessary or expedient and to take all other appropriate
action, including the payment to persons in France of
French france for goods and services. The necessary French
franc funds to finance such operations may be obtained by
either of the following two methods:
(a) The first method 18 the purchase of French francs from
persons in Switzerland who your representative, after
consulting with the United States Legation in Bern when
feasible, is reasonably certain have held such French
france since prior to the fall of France or have since
acquired such francs in such manner as has not benefited
the enery. The sellers of such france may be reimbursed
therefor in Swies france at the prevailing unofficial rate
of exchange in Switserland for French France.
Regraded Unclassified
161
- 2 -
(b) The second method is the acquisition of French france from
persons in France or elsewhere for which reimbursement
will not be made until after the war. In order to insure
reimbursement after the war to the persons supplying such
france, blocked accounts may be established on your books
in the United States, or in a bank in the United States
or a bank in Switzerland. No payments may be made from
any such blocked account without the specific approval
of the Treasury Department and no assignments may be
made of any interest in such blocked account without such
approval,
2. The total amount of dollars or Swiss francs paid out or set up
in blooked accounts or otherwise obligated under the terms of
this license shall not exceed 2,500,000 Swiss francs, or the dol-
lar equivalent thereof, during the six months' period beginning
January 1, 1944.
3. Your representative should keep the American Legation in Switzerland
fully informed with respect to the financial transactions effected
under this license. In 80 far as feasible your representative should
make certain that the persons from whom the French francs are pur-
chased are acceptable to the Legation. Your representative should
satisfy himself that payments to such persons will not benefit the
enemy.
4. Periodic reports with regard to any operations engaged in under this
license should be filed with the Treasury Department by your repre-
sentative through the United States Legation in Bern." (End of text
of license).
Regraded Unclassified
102
- 3 -
Please advise Saly Mayer that this license has been lasued by
the Treasury Department in order to clarify the procedure to be fol-
lowed by him in connection with the seguisition of French france for
wee in relief end evacuation operations in France and that the Tree-
outy Department will consider requests to incruano the total amount
of dollars or Sviss frence specified in paragraph (2) of the license.
These operations, BA well 2/1 the operations reforred to in
Department's 3168, December 18, 1943, have the approval of the
Department and of the Treasury and you should take all reasonable
atops to facilitate them. Please promptly report to us the progress
being made and any difficultion encountered, particularly in connection
with the financial operations involved.
Regraded Unclassified
163
January 7th, 1944
Memorandum on the Evacuation of 5,000 Children
From France
In July and August, 1942, large scale deportations of refuges Jews from France
took place. At that time parents were given the choice of either taking their
children with them or leaving them in the custody of child care organizations.
Many parents chose the latter alternative and as a result thousands of children
became & charge upon an organization known as the oss, a medical and child care
agency which has been subventionsd by the J.D.C. for many years. Mforts were
started immediately, as a result of requests from France, that a 1,000 children
be brought out of France to the U.S. The U.S. Committee for the Care of Buro-
pean Children vas approached and agreed to sponsor the admission of these
children, giving the requisite guarantees for their mintenance and care. The
State Department agreed to authorise the issuance of quota visas for the children
on the basis of a letter of guarantee sent to the Attorney General by the U.S.
Committee. The J.D.O. agreed to 4/9ths of the cost of transportation
and mintenance of the children.
is the deportations increased in volume there were many more children for whom it
vas deened imparative that visas be secured. The matter was again discussed with
the State Department and visas for an additional 4,000 children were promised by
the State Department under the same conditions as before.
In the meantime, during the months of August, September and October, the problem
of getting the first group of one thousand children ready for emigration, having
them brought to the American Consulates for medical examination, and securing the
personal data, was being carried on by representatives of the Qualters and JDC in
France. Other organisations keenly interested in the evacuation of the children
included the International T.M.G.A. and the local French refuges bodies.
Although permission had been secured in principle from the Vichy authorities for
exit visas for the children, this was renewed and revoked during the month of
October. Finally, as a result of the strong pressure of the American Charge d'Affairs,
Mr. Pinkney Tusk, the authorities agreed to let the first 500 children leave the
country. The children were all assembled, baggage packed, train travel arranged
for the ship chartered for their passage. 1 group of 28 ascorts consistin of
pediatricians, child care workers and trained social workers vas assembled to be
sent to Lisbon to escort the children to this country. The boat on which the escorts
left departed for Lisbon on November 7th, 1942. The American invasion of
North Africa on November 7th closed the borders of France with the complete 06-
cupation of the so-ealled uneccupied section of France. Despite the efforts of the
local French committees to secure exit visas for the children, they were not
forthcoming.
Donald Lowrie, who was in charge of the International T.M.O.A. working in France,
vent to Switzerland and from there undertook to secure the entrance of the
children into Svitserland. The Buise authorities took the position that they would
have to have the guarantee of a responsible government that the children would be
re-evacuated after the war. This request of the Swise Government vsa taken up
with the State Department and with the British government. The State Department
pointed out that 18 vas impossible for it to give wuch a guarantee to the Svise
assified
164
- 2 -
government since it meant in effect binding a subsequent administration for the
issuance of visas to children who might by the end of the war become adults. It
10 believed that this problem was dismassed at the Berauda Conference on Refugees.
The suggestion that arose from the Bermuda Conference was that the Allied Nations
join in & declaration to the neutral countries pledging that they would re-admit
to their respective countries all refugees who were forced by reason of persecution
so leave those countries. It took many months to secure the consent of all the
governments concerned to subscribe to such a declaration. The text thereof has not
yet been made public.
Ye believe that the Swies government vas persuaded to approach the Vichy authorities
to ermit the children to leave France by via of Spain. This request of the Ovies
government. which was based entirely upon humanitarian grounds, was refused by the
French. Nevertheless, Donald Lowrie and representatives of the JDC and other agencies
in Switserland have continued to press the Svies government to make a second demarche
to the effect that Switzerland herself would be prepared to give asylum to the
children. Switzerland has continued to request the formal guarantee of re-svacuation.
On November 11th, 1943. the Colonial Secretary amnounced to the House of Commons
that the unused portion of the Palestine certivicates authorised under the White
Paper, vis. 30,000 immigration certificates, would remain available for use after
March, 1944. The Colonial Secretary stated that due to the war, t1 was not possible
to fill the quota under the White Paper and therefore the life of these certificates
would be prolonged indefinitely.
On the basis of this announcement the JDC approached the State Department and asked
whether there was any objection to our going to the British Embassy requesting that
the British government set aside sufficient Palestine certificates to assure the
evacuation from Switserland of the children after the war. In this matter & requisite
guarantee could be given to Switzerland. The State Department interposed no objection
whatsoever to such a proposal and this to the British Rebasay on November
23rd, 1943. Mr. Hayter of the British Robasty agreed to transmit this suggestion to
the Foreign Office in London. Subsequently, we were advised that the State Department
had associated itwelf with this request and had likewise communicated with the
Foreign Office to have such certificates set aside for these children. On January 3rd,
1944 (letter dated Dec. 31, 1943) the JDC received a letter from Mr. Hayter, copy
attached hereto, pointing out that the Palestine government would find difficulty
in reserving such certificates until after the war and expressing the hope that the
general assurance given to the neutral states about the eventual repatriation of
refugees night be sufficient to meet the requirement of the Swiss government. The
JDC replied as per copy attached.
On December 28th, 1943, the JDC vali asked by the State Department whether the
guarantee which had been given by the U.S. Committee for the maintenance of 5,000
children in this country VS.B still valid and whether reaffirmation of this guarantee
would be given. Such a reaffirmation vali agreed to by the U.S. Committee and a
letter sent to the Attorney General confirming the readiness of the Committee to
provided for 5,000 children in the event they were admitted to the U.S. The JDC
agreed to underwrite approximately $2,000,000 of the estimated cost of some 4-41/2
million dollars which the guarantee entailed. On the basis of this reaffirmation,
the State Department notified the British government that 11 stood ready and renewed
Regraded Unclassified
IPS
- 3 -
offer to take 5,000 children under the original plan which it had approved in
ce 1942. The whole question of the guarantee and of the children was to have
een etober, discussed at the meeting of the Intergovernmental Committed on January 4th. 1944.
at the outcome of that meeting 10 not yet known to us.
le have recently been redeiving urgent cables from Switserland requesting that
he necessary guarantee be given to the Swiss government. Such a guarantee can
nly be given by a resonsible government since no private Agency would be in a position
jo assure the Swiss authorities that it would be able to move the children out of
witzerland when the war is overl
It 10 of interest to record that during the period when the plight of these children
as sade known in the Fall of 1942 other countries came forward to guarantee asylum
10 the children. For example, Canada stated it would take 1,000; Argentina agreed
jo take 1,000; several other South American countries agreed to take smaller numbers.
The President of the Dominican Republic offered to take 3,500. At one time, counting
certificates available to the Madassan, that there were 20,000 visas available for
the children, although the top number of children who could be evacuated vas probably
lot more than half that number.
is should finally be recorded that about 120 children from Spain and Portugal were
brought to the U.S. under the guarantee of the U.S. Committee.
lestrictions as to the children were set up: children of enemy nationality had to
be less than 14 years of age: children of Allied nationalities had to be less than
years of age. There vas no minimum limit on the age of the children.
La of the date that this memorandum is being dictated, it is unkown whether the
requisite guarantees have been or will be given to Switzerland 80 that she could
sake the necessary approach to the French authorities to permit the children to leave
bither via Spain, from which they could emigrate to the U.S., or to enter Switserland
for the duration.
At the present time, children are being deported from France and there is a relent-
Less hunt being conducted by the Gestapo to locate the children hidden in private
homes in order to intern them into concentration camp# in preparation for their
leportation eastward.
Moses A. Leavitt
MALIJO
00 - Mesers. Paul, White, Pehle, Luxford, DuBois, Fox, Schmids, Miss Hodel
Regraded Unclassified
Regraded Unclassified
167
The Union of Orthodox Rabbis of the United States
one : uada received information that large numbers of
Jewn remain hidden in the forests on the borders of
several Puropean countries, living under the most ex-
(rede conditions and falling easy prey to hunger and
Tisease, and that active efforts to rescue such Jews
could be made provided the necessary funds were made
available. The Union approached State and Treasury for
proper authorization to undertake the necessary trans-
actions. Accordingly, we worked out with State's approval
RR appropriate license providing a practical and effective
method to finance underground operations, i.e., direct
transfers of free exchange into enemy or enemy-occupied
territory when other methods of financing are impracticable,
Regraded Unclassified
168
PARAPHRASE OF TELEGRAM SENT
REC'D JAN 29 1944
FROM: Secretary of State, Washington
TO:
AMERICAN LEGATION, Born
DATED: January 22, 1944, 9 Pollo
NUMBER: 229
CONFINENTIAL
The Union of Orthodox Rabbis of the United States
and Canada, hereinafter referred to as the Union, has been
issued a license by the Treasury Department, the substance
of which license is given below, It is requested that the
substance of the following message be transmitted urgently
to the Union's representative, Dr. Isaac Sternbuch whose
address is St. Gall, Switserland:
A. Notwithstanding General Ruling No. 11, we
hereby authorise your representative in Switser-
land, together with such agents as be may appoint,
to communicate by any seans which he may deem
expedient or necessary with persons in enemy
territory or territory occupied by the enemy
for the purpose of carranging the evacuation to
such areas of safety or relative safety as may
be selected by such representative, of persons
in such territory in imminent danger of their
lives and to arrange for the safeguarding and
sustenance of such persons until such evacuation
is possible and to pursus any other action which
my
Regraded Unclassified
169
- 2 -
Regraded Unclassified
may be appropriate for said purposes, including the
payment of funds to persons in enemy or enemy occu-
pied territory who may have provided either goods or
services in connection with the above. We authorise
the following three methods for the purpose of obtain-
ing the necessary local currency for the purposes of
financing the operations referred to above, provided
that method three should not be used if it is feasible
to use either method one or two to obtain the local
currency. (1) The purchase in Switserland of the
exchange or currency of the country in which the
operations are to take place provided that your
representative feels reasonably certain that such
currency has been held by the sellers since before
the date as of which the United States Government
frose such country or, if acquired subsequently
thereto, that the seller has acquired such currency
under the circumstances which were not beneficial to
the enemy, your representative in such case to consult
when possible with the American Legation in Bern.
Sellers of such local currency or exchange may be
reimbursed in Briss francs at the prevailing unofficial
rate of exchange in Switserland, (2) The purchase in
enemy or enemy occupied territory of the local currency
170
- 3 -
or exchange of the country in which the operations
are to be effected provided that reimbursement there-
fore is not to be made until after the war, Reimburse-
ment to the sellers of such local currency or exchange
subsequent to the war may be insured through the
establishment on your books in the United States of
blooked accounts in a. Switzerland or United States
bank, provided that there shall be no assignment of
any interest in such blocked account or any payment
from such blocked account unless the Treasury Depart-
ment specifically approves in each case, (3) The
purchase in enemy or enemy occupied territory of
the necessary local funds, exchange, services or
goods, reimbursement therefore to be made in three
currency notes or foreign exchange provided your
representative shall take such reasonable steps as
my be pessible to prevent such foreign exchange or
free currency notes being acquired by persons who may
provide the same to the enemy.
B. Total sume represented by claims established
against any blocked account established in accordance
with this license, plus the sums paid out therefrom,
shall net exceed 430,000 Swies francs or the dollar
equivalent thereof during the six months beginiting
January 1, 1944.
Regraded Unclassified
171
- 4 -
C. Your representative should fully report to
the American Legation in Born the financial trans-
actions completed pursuant to this license and
your representative should insure to whatever
extent possible that the sallers of local exchange
or currency are persons acceptable to the American
Legation in Bern, Your representative should be
satisfied in so far as possible that any payments
made to such persons will not be of benefit to the
enemy.
Do Periodic reports with regard to the operations
consummated under this license should be filed with
the American Legation in Bern by your representative."
It is requested that you inform Mr. Sternbuch that,
unless he is advised to the contrary by the Union, his
authority in connection with the foregoing is to be
exercised in collaboration with Mr. David Rubenfeld and
Mr. Rosenbaum, You should also inform Mr. Sternbuch that
this license has been issued as a result of advice that
substantial numbers of Jews are now hiding in forests
bordering several European countries, in particular Poland
and Hungary, where living conditions are most extreme and
where they are very subject to hunger and disease. The are
further informed that active endeavors can be undertaken to
resous these people, the evacuation from Poland to Hungary
being
Regraded Unclassified
- 5 -
being specifically contemplated, provided the necessary funds
are made available.
These operations have been approved by the Treasury
and the Department, and it is requested that you take such
reasonable steps as may be necessary to facilitate carrying
them into effect. Your attention is called to clause 3 of
paragraph (a) of the license under which we specifically
authorise direct transfers of free foreign exchange into
enemy or enemy occupied territory, if the other two methods
of financing the program prove impracticable,
It is requested that you report promptly to the
Department with respect to any difficulties which may be
encountered (particilarly in connection with the financial
operations). In indication as to what progress has been
made should also be included in your report.
HULL
00 - - Messrs. Paul, Gaston, White, Pehls, Luxford, DuBois, E. M. Bernsted
Mr. Schmidt, Mr. Fox, Miss Hodel
Regraded Unclassified
610 the MMA
and
956
LOS
355
and
174
Through London and Bern, word was received from our
representative in the Vatican to the effect that the funds
of charitable Italians in Rome who have been working on
whalf of the Jews, especially the children of those whom
the Germans had seized and deported, were very low and
that considerable funds were urgently needed. It was
suggested that local borrowing might be negotiated if
assurances were sent that funds would be forthcoming.
The American Jewish Joint Distribution Committee was
approached here and 8. message was sent to our Vatican
representative to the effect that the American Jewish
Joint Distribution Committee is willing to provide up to
$20,000 at the present time and to consider reasonable
additional amounts if needed.
Regraded Unclassified
175
PARAPHRASE OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
AMERICAN LEGATION, BERN, (SWITZERLAND).
DATED:
January 7, 1944
NUMBER: 55
CONFIDENTIAL
The contents of your telegram of December 28, 1943,
no. 8182, in which you transmitted a cable from Tittman
dated December 21, no. 2244, has been given consideration
by Treasury and the Department. London's telegram of
December 28, 1943, no. 9021, also relates to this mat-
ter. Given below is the substance of that message:
On December 22 a letter was addressed to the
Embassy by the Director of the Inter-Governmental
Committee on Refugees, suggesting that the Depart-
ment might deem advisable an approach to the refu-
gee organizations in the United States in respect
to the following: The Foreign Office has just
informed us that the British Minister to the Vatican
has advised that charitable Italians in Rome who
have been engaging in activities for the benefit of
the Jews (especially the children of parents who
have probably been deported to Germany and who have
been
Regraded Unclassified
176
been definitely seized by the Germans) are now find-
ing that they have nearly exhausted their funds and
this is hampering and may require discontinuance of
this work. The Foreign Office further informs us that
the matter is being discussed with the British Treas-
ury to determine whether funds for this purpose can
be permitted to be transmitted to the account of the
British Minister to the Vatican. The Foreign Office
requests information from us as to whether we would
give consideration to an approach to the Jewish char-
itable organizations in London to ascertain whether
they would make a contribution. Therefore, we have
conditionally posed this question to the following
organizations in London: the World Jewish Congress,
the Central Counsel for Jewish Refugees, and the
Board of Deputies of British Jews.
Moreover, we wonder whether the State Depart-
ment might not be advised so that it might consider
the advisability of approaching the American Jewish
Joint Distribution Committee or some other organi-
sation in the United States provided, of course,
that the Treasury would pormit the transmission of
funds for the purposes outlined.
Given
Regraded Unclassified
177
Given below is the substance of our telegram to
London dated January 4, 1944, no. 52, replying to the
cable from London quoted above:
with reference to your telegram of December 28,
1943, no. 9021, concerning the transmission of funds
for relief work for the Jews in Italy as the Inter-
Governmental Committee on Refugees suggested, you
are informed that the American Jewish Joint Distri-
bution Committee has been approached and is will-
ing to provide at this time up to $20,000 and to
give consideration to reasonable additional sums
as they are needed. There is willingness on the
part of the Treasury to license the transmittal of
the funds, and we request you to report at once
as to whether such transmission of funds should be
through London, in which case the name of the reci-
pient in London should be stated. It is also
requested that you report with respect to the iden-
tity of the organization in Rome who will receive
the funds 80 that further remittances can be trans-
mitted directly if they are necessary.
The message given below is for Tittman, and it is
requested that you transmit it to him in addition to the
foregoing
Regraded Unclassified
178
foregoing information:
with reference to your telegram of December 21,
1943, no. 224, it has been agreed by Treasury and
the Department that funds up to $20,000 for the
operations which you mentioned will be fortheoming
in the future and that you may give the necessary
assurances in this regard. Please inform us if
additional funds are needed. Bern has been requested
to repeat to you the substance of London's tele-
gram dated December 28, 1943, no. 9021, relating to
the saze matter, and our telegram of January 4,
1944, no. 52, which is in reply to London's cable.
HULL
cc - Messrs. White, Pehle, Schmidt, Fox, Luxford, Dubois, Miss Hodel
Regraded Unclassified
179
PARAPHRASE OF TALEGRAP received
PROVI
ASSERICAN ELECATION, BARK
TO:
Secretary of State, Washington
December 23, 1943
STREET: 8182
CONFIDENTIAL
Following is Tittean's cable of December 21, no. 224.
I refer herewith to the cable regarding relief of
Jews in Rome which AT British collea Lie sent to London
on November 24, 1943, no. 442, for repetition to Washington.
to were informed today by the representative of Jens
in Rose that considerable funds will be needed urgently
et the end of the month. It la suggested by him that
if assurances could be Given by Caborne and no either in
writing or orally that funds would be fortheoming some-
time in the near future from Ingland and the United States,
it might 30 possible for him to negotiate a loan
locally using our assurances as security.
Our reply was that such assurances could not be
given without previous authorization, but we agreed to
transmit the message and ask that consideration be given
to the suggestion because of the special conditions pre-
vailing here and likely transfer difficultisa through
usual channels. It is requested that you consult London
and vable at the earliest possible moment.
HARRISON
Regraded Unclassified
180
January 4, 1944
MARICA AMNASSY
LORDON
UG. 52
Treasury Department requests following reply be sent to your
0001, December 25:
QUOTE This is with reference to your cable No. 9021,
December 20, 1943, concerning suggestion of Interpovern-
cental Consittoe on Refugees with regard to funds for
relief work on behalf of Jens in Italy.
American Jowish Joint Distribution Committee has
been approached and is willing to provide up to $20,000
at present time and to consider reasonable additional
wasents if needed. United States Treasury is propared
to icense transaction and will appreciate pronpt advice
LS to whether remittance may be effected through London
and if so to whom in London funds should be remitted.
Please advise also as to identity of recipient organiza-
tions in Rome so that future remittances can DE made
direct from United States If desirable. UNQUOTE
A-1/8:0LBIMSL
VD
FD
ED
Regraded Unclassified
181
at
PLAIN
London
Dated December 28, 1943
Rec'd 4:07 Pello
Secretary of State,
Washington.
9021, twenty-sighth.
Embassy has received from Director, Inter-
governmental Committee on Refugees, letter dated
December twentysecond containing suggestion that
Department may wish approach refuges organizations
in United States as follows:
"The Foreign Office has just informed us that
the British Minister to the Vatican has reported
that the funds of charitable Italians in home, who
have been working on behalf of the Jews, especially
the children of those whom the Sermans have seized
and probably deported to Cormany, are very low and
in consequence they say not be able to continue with
their relief work. The Foreign Office is asking the
Treasury whether they will aller funds for this purpose
to e paid into the account of the British Minister
to the Vatican, and has asked us whether we would
consider
Regraded Unclassified
182
-2- 99021, twenty-eighth, from London.
consider approaching some of the Jewish charitable
organizations in this country in case they my be
disposed to make - contribution.
Le are therefore addressing = conditional enquiry
to each of the following organisations in London:
World Jewish Congress, Board of Deputies of British
Jows, Central Council for Jewish Refugees.
In addition it has occurred to us that you night
wish to inform the State Department for whatever
approach it might deen advisable to make to the
American Jewish Joint Distribution Committee or
other organizations in the United States, on con-
dition that the United States Treasury are willing
to allow transmission of funds for this purpose".
SINAST
WTD
Regraded Unclassified
the
184
For some time the American Jewish Joint Distribution
Committee has been working on the problem of evacuating
refugees from Spain to Palestine. Finally, in early
January, arrangements were completed for the charter of
the Portuguese vessel, "Nyassa," and its safe conduct
through the Mediterranean. 600 refugees were permitted
to leave Spain and entry for them into Pelestine was
arranged. Since the financing of the operations was
being handled by the American Jewish Joint Distribution
Committee here, we worked out the necessary authoriza-
tion so that the ship was able to sail as scheduled on
January 22nd.
Attached are reports just received concerning the
possible use of the "Nyassa" to pick up refugees in
Constanza, Rumania. We are presently working on the
problem of shipping facilities for this latter group
of refugees.
Regraded Unclassified
185
Y
25, D. C.
eply refer to
40.48 Refugees/5074
My dear Mr. Leavitts
Confirming By telephonic conversation with you
today, the Department has received a comunication from
Mr. Barlas at Ankara stating that he understands that
a vessel flying a Portuguese flag which was chartered
by the Joint Distribution Committee departed from Lisbon
on January 23 carrying some 700 refugees. Mr. Barlas
believes that in view of the fact that the printipal
difficulty in rescuing more than a limited number from
Transnistria is because of the lack of transportation
that he suggests that efforts be made to continue the
charter of the Portuguese vessel in order that it might
proceed from Palestine to Constansa and thus evacuate
Jewish refugees from Transnistria.
As I stated on the phone, there is some question
in my mind as to whether the Portuguese Government would
permit the vessel in question to proceed to Constanza
but is is possible that you will desire to have Mr. Schwarts
investigate at Lisbon. It is believed that the War Refugee
Board will be functioning in the near future and if that
Board or the Intergovernmental Committee may assist,
please do not hesitate to inform m. I an also glad to
confirm that no have received information from Turkey
to the effect that the Turkish Government will do every-
thing it consistently can to protest the Jewish people
of Turk origin who find themselves in France.
Sincerely yours,
Moward K. Travers
Chief, Visa Division
Mr. Moses A. Leavitt,
American Jewish Joint Distribution Comittee,
270 Madison Avenue,
You York 16, New York.
Regraded Unclassified
186
I
25, D.C.
reply refer to
840.48 Refugees/5075
840.48 Refugees/5080
My dear Rabbi Wise:
Confirming my telephonic conversation with your
secretary this morning, we have received a telegram
from Ambassador Steinhardt who states that he has dis-
cussed the matter with Mr. Barlas, head of the Jewish
Agency in Turkey, who is also, as you know, in charge
of the transit of Jews to Palestine from the Balkans.
Mr. Barlas states that his principal difficulty is
caused by the lack of transportation facilities rather
than unwillingness on the part of the Turk authorities
to cooperate. The Ambassador states that in his opinion
unless transportation facilities are augmented by vessels
especially chartered for the purpose, it is most unlikely,
due to the existing war conditions, that rail facilities
can be materially increased.
The Ambassador states that the Turkish authorities
have repeatedly assured him of their desire to cooperate
but that under existing conditions they cannot increase
their rail facilities.
I an also very pleased to inform you that from in-
formation just received from the Ambassador, the Turk
Government will exert itself to the utmost to afford
protection to the several thousand Jewish people of
Turk origin who find themselves in France.
Sincerely yours,
Howard K. Travers
Chief, Visa Division
Rabbi Stephen S. Wise,
World Jewish Congress,
330 West Forty-second Street,
New York, New York.
Regraded Unclassified
Regraded Unclassified
188
With the approval of State and FEA, we licensed
the transfer by the American Jewish Joint Distribution
Committee of $100,000 to Turkey for the purchase of
foodstuffs there to be distributed by the International
ded Cross among internees in Transnistria. The Inter-
national Red Cross has now suggested that some of these
funds be used for foodstuffs to be distributed by them
in Yugoslavia, Czechoslovakia and Greece and we are
presently working with State and FEA on this,
Regraded Unclassified
7.
Regraded Unclassified
130
A report dated October 12, 1943, received by the
Wushington Delegate of the International Red Cross
from his headquarters in Geneva, indicated the desperate
need for funds in order to provide food and medicines
to Jewish refugees in Rumania, Theriesenstadt, Slovakia,
And Croatia, areas in which the International Red Cross
stated it could operate. One of the first acts of the
Tar Refugee Board was the sending of a cable to the
International Red Cross in Geneva asking for up to date
information on this problem and stating that the Board
HAS prepared to see that funds are made available for
the necessary operations.
Regraded Unclassified
COPY
191
CABLE TO BERN
Please transmit the following urgent message to
the International Red Cross, Geneva, Switzerland, from
the War Refugee Board:
"We are familiar with the report (contained
in your cable No. 571 of October 12, 1943, to
your Washington Delegation) conserning possible
feeding programs in Rumania, Theresienstadt,
Slovakia and Creatia and the need of funds therefor.
is desire immediate information conserning what
areas you could operate in right now, assuming
that necessary funds are made available to you,
to provide food and medicines to Jews and other
persecuted groups in German-ocsupied areas who
are denied the facilities available to the rest of
the population. Please advise where food, medicines,
and other supplies can be purchased and how much
meney is needed. We are prepared to see that funds
are made available at once for necessary operations."
Regraded Unclassified
COPY
102
INTERNATIONAL COMMITTEE OF THE RED CROSS
Geneva,
October 12, 1943
Central Agency No 571
Note to the Delegation of
for Prisoners of
the International Committee
war
of the Red Cross in Washington
G. B/Pe. G59/2
0.59/5 JES/HL
Re: your cable No. 510 of September 28, 1943 conserning the
Jewish problems.
We are glad to give you hereafter a new survey of this
question and answer you by letter to your above mentioned
cable because of the complexity of these problems.
ROUMANIA
The Relief action on behalf of the Jewish deportees in
Transnistria (Ukraine) seems to begin under favorable
auspices and we hope to be able to have food distributed
to these deportees with money raised in Switzerland and
with the assistance of the Roumanian authorities and
Red Cross. Unfortunately, we do not receive any funds from
overseas, not more for this action than for similar others,
80 that this assistance must remain very limited and depends
on contributions which We have to collect on the spot.
Our delegation in Bucarest has obtained from the Roumanian
government an authorization to visit the places where these
deportees are living and to supervise the distribution.
Xe also receive lists of names of these deportees. We are
therefore entitled to hope that the continued efforts of
the International Committee of the ned Cross on behalf of
Jewish deportees, will have some tangible result, at least
in the case of Transnistria.
Regraded Unclassified
COPY
192
INTERNATIONAL COMMITTEE OF THE RED CROSS
Geneva,
October 12, 1943
Central Agency No 571
Note to the Delegation of
for Prisoners of
the International Committee
har
of the Red Cross in Washington
G. 8/Pe. G59/2
0.59/5 JES/HL
Re: your cable No. 510 of September 28, 1943 concerning the
Jewish problems.
We are glad to give you hereafter a new survey of this
question and answer you by letter to your above mentioned
cable because of the complexity of these problems.
ROUMANIA
The Relief action on behalf of the Jewish deportees in
Transnistria (Ukraine) seems to begin under favorable
auspices and we hope to be able to have food distributed
to these deportees with money raised in Switzerland and
with the assistance of the Roumanian authorities and
Red Cross. Unfortunately, we do not receive any funds from
overseas, not more for this action than for similar others,
80 that this assistance must remain very limited and depends
on contributions which we have to collect on the spot.
Our delegation in Bucarest has obtained from the Roumanism
government an authorization to visit the places where these
deportees are living and to supervise the distribution.
Re also receive lists of names of these deportees. de are
therefore entitled to hope that the continued efforts of
the International Committee of the Red Cross on behalf of
Jewish deportees, will have some tangible result, at least
in the case of Transnistria.
Regraded Unclassified
193
. 2
We can add that a first report of our delegate has just
announced a certain number of improvements obtained because
of our intervention. For instance, Jewish children have
been gathered at Odessa, in view of their emigration to
Palestine. All facilities of travel and supervision in
Transmistria have been granted to our delegation during
a conference with the President of the Council of Ministers,
who showed his sympathy towards the initiative taken by
the International Committee of the Red Cross in the question
of assistance to the Jews and promised his entire support.
RUIGRATION
This problem has reached a deadlock at this time. As
Bulgaria has declared not to be in a position to authorise
the passage of Jews, the emigration by railroad has become
impossible.
Although the Internation. Committee of the Red Cross did
not want to assume itself the charge of organization of
transports by sea, it has nevertheless promised to support
the efforts displayed in Humania, especially by the Red
Cross, in order to find ways and means of securing exit
permits for Jens admitted to immigrate to Palestine. Un-
fortunately, these plans have not had any success until
now, and we have only very little hope to succeed. The
reasons are in the first place, the lack of appropriate
ships and also, as we believe, lack of funds. Moreover,
the situation in the Black Sea does not seem to allow at
present, travel by sea, and no ask ourselves even whether,
under these circumstances, the necessary safe-condusts
could be secured from the belligerents for these ships.
But this problem has also a financial aspect. The present
regulations conserning the transfer of funds from overseas,
do not allow the persons desirous to emigrate, to count
on outside financial support. It is therefore up to the
Rumanians to secure themselves the necessary funds. This
financial question is in direct relation with the possibil-
ity of finding appropriate ships for the transport of these
persons. The ships which were sonsidered, so far, do not
meet the conditions governing the grant of the insignia
of the International Committee of the Red Cross, and of
its protestion; besides these ships will not be authorised
Regraded Unclassified
8 -
194
to leave the Rumanian ports. We follow, however, this
question very closely and we shall not fail to intervene
In case the least change should occur which would let fore-
see a possible favorable solution of this matter.
SLOVAKIA
The situation is unchanged, and we have no further knowledge
of deportations. The only help which was urgently requested,
concerned pharmaceutical products, and # communicated the
list of those products to the interested Jewish organisa-
tions in Switzerland. As these organizations could not sup-
ply us with funds, we have not been able to secure the de-
sired medicines, although W could have bought them in
Switzerland.
CROATIA
The Jews whose names and internment place in that country
we know, seem indeed to be in great need of help, a Jewish
organization in Switzerland makes efforts to assist them
but the clothes which are especially lacking, are absolute-
ly unfindable, and all exportation f rom Switzerland, even
of used clothing, is prohibited. (Money can buy food in
sufficient quantity in that country.) The hostilities
going on at present in Creatia do not allow a clear picture
of the situation and of the perspectives concerning the Jews.
We do not receive any information on the entire southern
part of the country.
-
with our note No. 528 of September 16, we sent you copies
of certain letters concerning the activity of the "Juedische
Unterstuetsungsstelle fuer das Generalgeuvernement". Unfor-
tunately, shipments ready to be sent, had to be hold back
and we do not think to be able, until further notice, to
send shipments to Cracow. The letters we sent you have,
therefore, only a documentary interest. There are constant
variations in this question, and what is allowed and can be
realized one day, might be suspended the following day. We
are, therefore, not In a position to give assurance for the
future.
Regraded Unclassified
195
We received the following cable from the World Jewish
Congress: submitting you through your Washington office
list Jewish interness in Theresienstadt with the request
to transmit parcels with food to them stop kindly inform
us your decision." (WJC Arieh Tartakower)
May we ask you to answer the World Jewish Congress along
the following lines:
de have delayed our answer to this cable, dated September 7,
for technical reasons. The International Committee of the
Aed Cross has not concerned itself so far, with the dispatch
of individual parcels to persons other than prisoner of war
or civilian internees. In Germany and in the occupied
countries, the Jews are not considered as civilian internees,
neither in the ghettos nor in the concentration or labor
camps. The shipments of food, tonies and medicines made
by the "Commission Mixte" to the Jews in Theresienstadt,
for instance, have always been collective shipments. The
creation within the Committee of & new service concerning
itself with individual food parcels has become necessary,
and we have, therefore, waited for the solution of this
problem before answering the cable of the WJC. This ques-
tion is now solved, and we will be in a position, in the
future, to dispatch individual parcels among others also
to the Jews in Theresienstadt whose names we know, provided
of course that funds be put at our disposal to this effect.
He would consequently be grateful if this last point which
was not dealt with in the above mentioned cable of Mr. Tartakower,
could be settled, as soon as possible, if it is desired that
the International Committee of the Red Cross be able to act.
For the International Committee of the
Red Cross
(signed) Schwayenberg
Division of Prisoners, Internees and
Civilians.
Regraded Unclassified
the
the
1
w
the
197
For some time the World Jewish Congress has been
interested In arranging for the evacuation of Jews from
Transnistria to Rumania in order to save them from the
retreating German army. Appropriate licenses are being
issued to permit the necessary transactions and up to
date information has been requested from the World Jewish
Congress representative in Geneva. That internees can
i/e moved from Transnistria to places of safety is supported
by the recent reports that 6,400 have recently been moved
into Rumania and 500 more are expected to Le moved this
week. Immediate facilitation of the present movement may
save thousands of lives and private organizations here
are ready and willing to help with the necessary funis.
Regraded Unclassified
198
COPY
TO: Mr. Berle
FROM: J. W. Pehle
January 28, 1944
It would be appreciated if the attached cable is urgently
despatched to Minister Harrison at Bern.
/2/ J.W. Pehle
(received by Berle 3:50 p.m.)
Regraded Unclassified
199
CABLE TO BERN
Please transmit the following urgent message to Dr. Riegner of
the World Jewish Congress from the World Jewish Congress in the
United States:
QUOTE We understand that it may be possible for private
agencies in Switzerland to communicate with and send funds to
persons in Rumania who can arrange for the evacuation of Jews
from Transnistria. We desire immediate information concerning
what you feel might be done in this regard if the necessary
authority and funds were made available to you. The Treasury
Department has advised that they are prepared to grant the
necessary licenses covering communication and use of funds for
this project. The Treasury has also advised that, in addition
to the two methods for acquiring local funds contained in
licenses previously issued, the Treasury is willing to permit
the acquisition of the necessary local funds, goods or services
from persons in enemy or enemy-occupied territory against payment
in free foreign exchange or free currency notes, provided that
it is not feasible to finance the operations otherwise. You
should be required to take reasonable steps to avoid such free
foreign exchange or free currency notes being paid to persons
who would make it available to the enemy.
Any information should be furnished at once to Minister
Regraded Unclassified
200
- 2 -
Harrison for transmittal to the War Refugee Board UNQUOTE
Referring to Department's 251 of January 25 you are requested
to do what you can to aid private agencies in the development
and effectuation of projects of this character.
Regraded Unclassified
201
IAN 10AM
Mr. Pehle
Visa Hodel
Mr. Leavitt called this morning re B. cable be had received
from Dr. Schwarts in Lisbon to the effect that 6,400 internees,
including 400 children, have been re-evacuated from Transnistria
to Bucharest during the past meek. An additional 500 are ex-
pected to be moved within the next few days. Two hundred Polish
refugees were also moved from Cernauti (in Bessarabia) to
Bucharest. Mr. Leavitt says that this must have been an official
evacuation with the cooperation of the Rumanian Government. The
JLC has received no request for funds to assist in the evacus-
tion from Transmistria.
PHodel:hd 1/31/44
Regraded Unclassified
Regraded Unclassified
203
HEBREW SHELTERING AND
IMMIGRANT AID SOCIETY
425 Lafayette St., New York 3, N. Y.
January 27, 1944
War Refugee Board
c/o Secretary of the Treasury
Washington, D. C.
Gentlemen:
We are pleased to send you herewith our check for
$100,000. as & contribution towards furthering your
efforts to save the victims of enemy oppression and the
establishment of havens of temporary refuge for such
victims.
We are also enclosing, for your information, copy
of our letter to President Roosevelt.
Respectfully yours,
(signed) Abraham Herman
President
Regraded Unclassified
274
January 27, 1944
Hon. Franklin D. Roosevelt
President of the United States
The White House
Washington, D. C.
My dear Mr. President:
The Board of Directors of the Hebrew Sheltering and Immigrant
Aid Society wishes to express its profound appreciation for your
executive order establishing a War Refugee Board charged with
the responsibility for the inauguration of effective means for
the rescue, transportation, maintenance and relief of the victims
of enemy oppression, and the establishment of havens of temporary
refuge for such victims.
Your executive order, which is in full accord with the humani-
tarian tradition of the American Government, has evoked nation-
wide approval and enthusiasm, in which we most heartily join.
The Hebrew Sheltering and Immigrant Aid Society has been active
in the field of immigration and Americanization for xix decades
and has exerted every possible effort to save many thousands
of people from the persecution abroad by helping them to find
havens of refuge.
In its desire further to aid these oppressed people, and in
accordance with Paragraph 4 of your executive order, the Board
of Directors has the honor to inform you that it has resolved to
place at the disposal of the War Refugee Board the services of
its offices and personnel at home and abroad, and to offer its
participation in the cost of the undertaking. In accordance
with this resolution, it has this day forwarded to the War
Refugee Board a contribution of $100,000.
Very respectfully yours,
President
Regraded Unclassified
205
TREASURY DEPARTMENT
Washington
FOR INMEDIATE RELEASE
PRESS SERVICE
Thursday, January 27, 1944.
No. 40-49
The Treasury Department announced today that it had re-
celved the first contribution for carrying out the President's
new program of help to Jews and other persecuted minorities in
enemy or enemy-occupied territory. This contribution was
prompted by the recent action of the President in establishing
the Tar Refugee Board. The gift was in the form of a check for
10.00 on a small bank in a midwestern town. It was accompanied
by the following letter:
"Today we learned for the first time that Fresident
Roosevelt has ordered actual measures for the rescue
of those Jews and other people still under Hitler's
heel. My wife and myself are among those fortunate
Jewish people, who after years of persecution and
concentration camps found refuge and a real home in
the blessed U.S.A. Our only sorrow concerns the fate
of our dear old mother, 77, and our friends, who were
taken, 16 months ago, out of their homes to some un-
known place.
"I am 61, and my wife is 52, so we are not able to
make much money, especially as we were not used to
hard physical work. That is, why we are not able to
send more than this $10, - which we ask you to accept
98 our contribution for this good cause.
We are living in this small Ohio town where we were
received and accepted as equals among friends we never
met before. We will show our gratitude to this Country
by doing everything in our limited power."
000
Regraded Unclassified
Regraded Unclassified
207
The attached cable was sent to all
diplomatic and consular officials of
the United States throughout the World.
Regraded Unclassified
COPY
208
DEPARTMENT
RESTRICTED
AMERICAN EMBASSY,
January 25, 1944
LONDON.
The President has instructed the Secretaries of State,
Treasury and War to take action for the immediate rescue and
relief of the Jews of Europe and other victims of enemy perse-
cution. In an executive order issued today the President declared
QUOTE it is the policy of this Government to take all measures
within its power to rescue the victims of enemy oppression who
are in imminent danger of death and otherwise to a fford such
victims all possible relief and assistance consistent with the
successful prosecution of the war UNQUOTE. The order establishes
special governmental machinery for executing this policy. It
creates 8. War Refugee Board consisting of the Secretaries of
State, Treasury and War. The Board is charged with direct
responsibility to the President in seeing that the announced
policy is carried out. The President indicated that while he
would look directly to the Board for the execution of this
policy, the Board would cooperate with the Intergovernmental
Regraded Unclassified
295
- 2 -
Committee, UNRRA, and other interested international organizations.
The President stated that he expected the cooperation of all
members of the United Nations and other governments in carrying
out this difficult but important task. He stated that the exist-
ing facilities of the State, Treasury and War Departments would
be employed to furnish aid to Axis victims to the fullest extent
possible. He stressed that it was urgent that action be taken
to forestall the plot of the Nazis to exterminate the Jews and
other persecuted minorities in Europe.
You should do everything possible to effectuate this
policy of this Government, bearing in mind that time is of the
essence. You should cooperate closely with all public and
established private agencies who are active in your area in this
field, aiding them in the development of coordinated programs
and in the effectuation of integrated measures for the resoue,
transportation, maintenance and relief of victims of enemy op-
pression, etc.
The communication facilities should be made freely avail-
able to these private agencies for all appropriate messages for
carrying out the policy of this Government herein stated, keeping
the war Refugee Board advised through the Department. You should
give them every assistance in obtaining and verifying information.
Regraded Unclassified
210
- 3 -
You are requested to render an immediate report concerning
the actual situation as it exists today in the country to which
you are accredited. This report should include 8. full statement
as to what is being done to rescue the Jews and other persecuted
minorities from Hitler, including particularly (a) the extent to
which these war refugees are permitted to enter the country to
which you are accredited (b) the extent to which such country
actually encourages and cooperates in their entry and (c) the
extent to which such refugees are not able to enter such country
because of the failure of such country to cooperate in their
entry. This report should cover actual cases which have come to
your attention involving refugees being turned back at the border
and the reasons why such refugees were turned back. You should
also report periodicially on cases of this character which come
to your attention in the future.
You should include in your report your recommendations
as to what you feel this Government can do to e ffectuate with
all possible speed the rescue and relief of the victims of
enemy oppression, including particularly what can be done to
make the government of the country to which you are accredited
cooperate more fully in carrying out this policy. Your report
should cover any special obstacles which you feel are interfering
Regraded Unclassified
- 4 -
211
with the rescue and relief of these victims and your recommenda-
tions as to what can be done to remove these obstacles.
You are requested to approach the Government to which you
are accredited, explain the policy expressed in the President's
Executive Order referred to above, and ascertain from such
Government the extent to which it is prepared to cooperate.
Diplomatic and consular officers are instructed to do
everything possible to carry out the policy expressed in the
President's Executive Order. This cablegram has been transmitted
by telegram or airgram to all diplomatic and consular offices.
Repeat to consular offices under your jurisdiction.
CODE ROOM - Repeat to Missions at Lisbon, Madrid,
Stockholm, Bern and Ankara.
840.48 Refugees.
VD:HET:RS 1/25/44
Regraded Unclassified
212
WAR REFUGEE BOARD
Executive Office of the President
Washington
*05 MISSASE, INSURING NEWSPAPERS,
No. 1
class, January 2B, 1944.
The War Refugee Board held its first meeting on Wednesday,
January 26. The meeting was attended by Secretaries Hull,
preenthon, and Stimson.
The Board announced that all United States diplomatic and
consular offices throughout the world have been instructed to do
everything possible to effectuate this Government's war refugee
policy es announced by the President, bearing in mind the urgency
of the (roblem.
The instructions issued covered the following points:
All missions were advised that instructions
had been issued by the President to the
Secretary of State, the Secretary of the Treasury,
and the Secretary of "lar to endeavor to effect
immediately the rescue and relief of Jews in
Europe and of other victims of Nazi terror.
The President's Executive Order, issued on
January 22, 1944, contained the following
declaration:
"It is the policy of this
Government to take all measures within
its power to rescue the victims of
enemy oppression who are in imminent
danger of death and otherwise to
afford such victims all possible
relief and assistance consistent with
the successful prosecution of the war. "
For the purpose of carrying out this
policy, the Order sets up a Tar Refugee
Board composed of the Secretary of State, the
Secretary of the Treasury, and the Secretary
of Var. This Board is responsible to the
President, and to it is assigned the responsi-
bility for carrying out the policy above
announced, While the Board is responsible
directly for giving effect to the policy, it
is directed to work with UNERA, the Inter-
governmental Committee, and other appropriate
international organizations, The President
Regraded Unclassified
- 2 -
213
made it clear that in dealing with this
important and difficult problem he expected
to have full cooperation from the governments
of the United Nations and other foreign
governments. The facilities of the Department
of State, the Treasury Department, and the War
Department were directed to be employed to
lend the fullest aid possible to victims of
Axis persocution. The President emphasized
the urgent necessity of frustrating the Nazi
design to exterminate Jewish and other minority
groups in Hurcpe.
Cooperation was directed with all public
agencies and established private organizations
in the rescue areas of those officers who are
dealing with this problem, to the end that
effective programs and measures for relief,
rescue, mintenance, and transportation of
persecuted victims may be developed and carried
out. Immediate reports relating to the
situation existing in the countries of the
respective officers have been requested which
should include information as to the permission
granted to war refugees to enter each country,
the encouragement and cooperation given such
entry, and the extent to which each country does
not conporate in permitting entry. There refugees
are refused entry nt frontiers, the from and
ronsons for such action have been required.
immendations as to possible lines of
notion Invo been asked, with -------- of special
obstpolio Mich may handicap Yes securions
and methods of overcoming such obstadies,
Fordign governments 5%0 EDE approached
to madertain the extent to which they are
prepared to cooperate.
o0o
Regraded Unclassified
Regraded Unclassified
215
COPY
January 28, 1944
TO:
Assistant Secretary McCloy
FROM: Secretary Morgenthau
In accordance with your timely suggestion it would be
very helpful if instructions along the following lines were
sent to the appropriate Theater Commanders:
"The President has instructed the Secretaries of
State, Treasury and War to take action for the immediate
rescue and relief of the Jews of Europe and other victims
of enemy persecution. In An Executive Order issued
January 22, 1944, the President declared "it is the policy
of this Government to take all measures within its power to
rescue the victims of enemy oppression who are in imminent
danger of death and otherwise to afford such victims all
possible relief and assistance consistent with the successful
prosecution of the war.' The order establishes special
governmental machinery for executing this policy. It creates
a War Refugee Board consisting of the Secretaries of State,
Treasury and War. The Board is charged with direct
responsibility to the President in seeing that the announced
policy is carried out. The President indicated that while
he would look directly to the Board for the execution of this
policy, the Board would cooperate with the Intergovernmental
Committee, UNRRA, and other interested international organiza-
tions. The President stated that he expected the cooperation
of all members of the United Nations and other governments
in carrying out this difficult but important task. He
stated that the existing facilities of the State, Treasury
Axis victims to the fullest extent possible. He stressed
and War Departments would be employed to furnish aid to
that it was urgent that action be taken to forestall the
plot of the Nasis to exterminate the Jews and other
persecuted minorities in Europe.
You should do everything possible, consistent with the
effectuate this policy of this Government. You should cooperate
successful prosecution of the war in your theater, to
Regraded Unclassified
216
- 2 -
as closely as possible with all public and established
private agencies who are active in your theater in this field
in this matter. Consistent with your needs and military
security considerations, you should make communication
facilities available to these private agencies for appropriate
messages for carrying out the policy of this Government herein
stated, keeping the War Refugee Board advised through the
Department. You should report to the Department any
recommendations which you may have as to what you feel this
Department can do to effectuate with all possible speed the
resoue and relief of the victims of enemy oppression.
Foreign representatives of the Department of State and
of other Government Departments are being similarly in-
structed and you should give them any possible assistance."
I would appreciate your bringing this to the
attention of Secretary Stimson.
/a/ Henry Morgenthau, Jr.
January 28, 1944
(Secret Service Agent carried this to McCloy at 5:40 p.m.)
Regraded Unclassified
Regraded Unclassified
218
January 28, 1944
TO:
Mr. Berle
FROM:
Mr. Pehle
It would be appreciated if you would have the
attached messages from Secretary Morgenthau to representatives
of the Treasury Department in London, Stockholm, Ankara, Lisbon,
Cairo, and Algiers dispatched as soon as possible.
(signed) J. W. Pehle
Regraded Unclassified
213
CABLE TO AMBASSADOR WINANT, LONDON, FOR CASSADAY
FROM THE SECRETARY OF THE TREASURY.
FOR WINANT FOR CASSADAY FROM SECRETARY MORGENTHAU.
State Department's 634 of January 25 describes bes the action
which the President has taken for the immediate rescue and
relief of the Jews of Europe and other victims of enemy perse-
oution. It discusses the functions of the newly created War
Refugee Board composed of the Secretaries of State, Treasury
and War, and requests our diplomatic and consular officers
to do everything possible to carry out the policy expressed
in the President's Executive Order. Please familiarize your-
self thoroughly with this cable and the text of the Executive
Order, and with all aspects of this matter.
As representative of the Treasury, you are requested to
do everything possible to assist Ambassador Winant in this
important task. The Treasury Department is determined to do
everything in its power to aid the President's War Refugee
Board in its efforts to resoue and bring relief to victims
of enemy oppression who are in imminent danger of death.
You should keep me informed through Ambassador Winant
of any ways by which the existing facilities and powers of the
Treasury Department may be employed to furnish aid to Axis
victims to the fullest extent possible.
Regraded Unclassified
220
CA BLE TO MINISTER NORWEB, LISBON, FOR WOOD
FROM THE SECRETARY OF THE TREASURY.
FOR NORWED FOR WOOD FROM SECRETARY MORGENTHAU.
State Department's 200 of January 25 describes the action
which the President has taken for the immediate rescue and
relief of the Jews of Europe and other victims of enemy perse-
cution. It discusses the functions of the newly created War
Refugee Board composed of the Secretaries of State, Treasury
and War, and requests our diplomatic and consular officers
to do everything possible to carry out the policy expressed
in the President's Executive Order. Please familiarize yourself
thoroughly with this cable and the text of the Executive Order,
and with all aspects of this matter.
do everything possible to assist Minister Norweb in this important
As representative of the Treasury, you are requested to
task. The Treasury Department is determined to do e verything
efforts to rescue and bring relief to victims of enemy oppression
in its power to aid the President's War Refugee Board in its
who are in imminent danger of death.
You should keep me informed through Minister Norweb of
any ways by which the existing facilities and powers of the
Treasury Department may be employed to furnish aid to Axis
victims to the fullest extent possible.
Regraded Unclassified
221
CABLE TO MINISTER JOHNSON, STOCKHOLM,
FOR OISON FROM THE SECRETARY OF THE
TREASURY.
FOR JOHNSON FOR OLSON FROM SECRETARY MORGENTHAU.
State Department's 131 of January 25 describes the action
which the President has taken for the immediate rescue and
relief of the Jews of Europe and other victims of enemy perse-
cution. It discusses the functions of the newly created War
Refugee Board composed of the Secretaries of State, Treasury
and Mar, and requests our diplomatic and consular officers
to do everything possible to carry out the policy expressed
in the President's Executive Order. Please familiarize your-
self thoroughly with this cable and the text of the Executive
Order, and with all aspects of this matter.
Às representative of the Treasury, you are requested to
do everything possible to assist Minister Johnson in this
important task. The Treasury Department is determined to
do everything in its power to aid the President's War Refugee
Board in its efforts to rescue and bring relief to victims of
enemy oppression who are in imminent danger of death.
You should keep me informed through Minister Johnson
of any ways by which the existing facilities and powers of
the Tre sury Department may be employed to furnish aid to
Axis victims to the fullest extent possible.
Regraded Unclassified
222
CABLE TO AMBASSADOR STEINHARDT, ANKARA,
FOR GUNTER FROM THE SECRETARY OF THE
TREASURY.
FOR STSINHARDT FOR GUNTER FROM SECRETARY MORGENTHAU.
State Department's 68 of January 25 describes the action
which the President has taken for the immediate rescue and
relief of the Jews of Europe and other victims of enemy perse-
cution. It discusses the functions of the newly created War
Refugee Board composed of the Secretaries of State, Treasury
and Mar, and requests our diplomatic and consular officers
to do everything possible to carry out the policy expressed
in the President's Executive Order. Please familiarize yourself
thoroughly with this cable and the text of the Executive Order,
and with all aspects of this matter.
As representative of the Treasury, you are requested to
do everything possible to a. ssist Ambassador Steinhardt in this
important task. The Treasury Department tment is determined to do
everything in like power to aid the President's War Refugee
Board in its efforts to rescue and bring relief to victims of
enemy oppression who are in imminent danger of eath.
You should keep me informed through Ambassador Steinhardt
of any ways by which the existing facilities and powers of the
Treasury Department may be employed to furnish aid to Axis
victims to the fullest extent possible.
Regraded Unclassified
223
CABLE TO AMBASSADOR WILSON, ALGIERS, FOR HOFFMAN
FROM THE SECRETARY OF THE TREASURY.
FOR WILSON FOR HOFFMAN FROM SECRETARY MORGENTHAU.
State Department's airgram of January 26 describes the
action which the President has taken for the immediate rescue
and relief of the Jews of Europe and other victims of enemy
persecution. It discusses the functions of the newly created
War Refugee Board composed of the Secretaries of State, Treasury
and War, and requests our diplomatic and consular officers to
do everything possible to carry out the policy expressed in
the President's Executive Order. Please familiarize yourself
thoroughly with this airgram and the text of the Executive
Order, and with all aspects of this matter.
As representative of the Treasury, you are requested to
do everything possible to assist Ambassador Wilson in this
important taak. The Treasury Department is determined to do
everything in its power to aid the President's War Refugee
Board in its efforts to rescue and bring relief to victims
of enemy oppression who are in imminent danger of death.
You should keep me informed through Ambassador Wilson
of any ways by which the existing facilities and powers of
the Treasury Department may be employed to furnish aid to
Axis victims to the fullest extent possible.
Regraded Unclassified
224
CABLE TO MINISTER KIRK, CAIRO, FOR MIK S8LL
PTLOW THE SECRETARY OF THE TREASURY.
FOR KIRK FOR MIKESELL FROM SECRETARY MORGENTHAU.
State Department's airgram of January 20 describes the
action which the President has taken for the immediate rescue
and relief of the Jews of Europe and other victims of enemy
persecution. It discusses the functions of the newly created
car Refugee Board composed of the Secretaries of State, Treasury
and Mar, and requests our diplomatic and consular officers to
CO everything possible to c arry out the policy expressed in
the President's Executive Order. Please familiarize yourself
thoroughly with this airgram and the text of the Executive
Order, and with all aspects of this matter.
Às representative of the Treasury, you are requested to
do averything possible to assist Minister Kirk in this important
task. The Treasury Department is determined to do everything
in its power to aid the President's War Refugee Board In its
efforts to rescue and bring relief to victims of enemy oppression
who are in imminent danger of death.
You should keep me informed through Minister Mirk of any
ways by which the existing facilities and powers of the Treasury
LOA Placnt may be employed to furnish aid to Axis victims to the
fullest extent possible.
Regraded Unclassified
Regraded Unclassified
276
The attached cable was despatched on
January 1 with a few minor changes
made by the State Department. The
purpose of the cable is to urge the
British to take parallel action in de-
claring its policy to rescue the per-
secuted peoples of Europe. The cable
also indicates that this Government is
prepared to continue its work with the
Intergovernmental Committee.
Regraded Unclassified
227
1-1-'44
CABLE TO AMBASSADOR WINANT IN LONDON.
Refer to Department's cable 634 of January 25 concerning
the President's Executive Order establishing the Har Refugee
Board and declaring the policy of this Government.
In discussing this matter with the British Foreign Office,
you are requested to make it clear that the establishment of
the Har Refugee Board represents this Government's determina-
tion to effectively carry out without delay the policy here-
tofore agreed upon by the two Governments to take all possible
measures for the speedy rescue and relief of the refugees of
Europe.
Although this Government on its part intends to take all
effort will not be unilateral and we wish to make it clear that
possible action with all possible speed, we hope that this
it continues to be the policy of this Government to encoura
and participate in effective cooperative efforts with other
governments.
Às the President has stated, the Board of course will
cooperate fully with the Intergovernmental Committee and other
interested international organizations.
of this Government and our desire that there be cooperative
In making clear to the British Government the position
efforts in this field, you should express to the Foreign Office
the view of this Government that the joint efforts of the two
Governments would be effectively implemented by a declaration
of policy upon the part of the British Government similar to
urge the British Foreign Office to send instructions to their
that made by the President. In this connection you should also
diplomatic representatives in foreign countries comparable to
the instructions contained in cable 634.
Please keep us informed of the attitude of the British
on this matter.
Regraded Unclassified
Regraded Unclassified
WU6 LG SER
ZG NEWYORK NY FEB 1 1944 628P
THE HONORABLE HENRY MORGENTHAU JR
SECRETARY OF THE TREASURY
AS THE THREE NATIONAL CHAIRMAN OF THE UNITED JEWISH APPEAL FOR
REFUGEES OVERSEAS NEEDS AND PALESTINE, LARGEST FUND RAISING
AGENCY THROUGH WHICH AMERICAN JEWS PROVIDE FOR THE RELIEF AND
REHABILITATION OF REFUGEES IN EUROPEAN AND OTHER LANDS,
PALESTINE AND other LANDS, PALESTINE AND THE UNITED STATES,
WE ARE MOST ANXIOUS TO MEET WITH YOU AND YOUR ASSOCIATE
MEMBERS FOR THE WAR REFUGEE BOARD IN CONFORMITY WITH THE BOARDS
DESTRE TO ACCEPT THE SERVICES OF PRIVATE ORGANIZATIONS AND
AGENCIES. THE UNITED JEWISH APPEAL FOR REFUGEES, OVERSEAS
NEEDS AND PALESTINE PROVIDES FUNDS FOR THE PROGRAMS OF THE
AMERICAN JEWISH JOINT DISTRIBUTION COMMITTEE. THE UNITED
PALESTINE APPEAL, AND THE NATIONAL REFUGEE SERVICE, WHICH ARE
THE MAJOR AGENCIES CONCERNED WITH REFUGEE PROBLEMS IN EUROPE,
PALEST INE, AND THE UNITED STATES, RESPECTIVELY. WE WOULD
APPRECIATE OPPORTUNITY OF MEETING WITH YOU OR YOUR APPOINTED
REPRESENTATIVES AT YOUR EARLIEST CONVENIENCE. IDENTICAL
MESSAGES HAVE BEEN SENT TO THE HONORABLE CORDELL HULL AND
THE HONORABLE HENRY L STIMSON RESPECTFULLY
UNITED JEWISH APPEAL FOR REFUGEES OVERSEAS NEEDS AND
PALESTINE RABBI JAMES G HELLER MP. WILLIAM ROSENWALD
RABBI JONAH B WISE NATIONAL CHAIRMAN 342 MADSON
AVENUE NEW YORK CITY.
825AM FEB2.
Regraded Unclassified
Regraded Unclassified
231
The Fedhala camp in North Africa is presently
under the jurisdiction of FEA, but arrangements are
under may to bring it under the control of UNIRA.
It is understood that at the present time there are
DO refugees in the camp. However, urgent efforts are
being made to transfer refugees from Spain to this
camp. lie have had several consultations with UNITA
people on this roblem and we are working on various
methods to facilitate the removal of as many refugees
18 possible from Spain.
Regraded Unclassified
Regraded Unclassified
COPY
233
TO: AMERICAN EMBASSY, LONDON, #370
FROM: SECRETARY OF STATE
DATE: JANUARY 14, 1944
With reference to our A-12 January 3, 1944, con-
cerning refugees on Island of Rab, Department has just
received word from Army officials that Rab has been
recaptured from Germans and is now in hands of Yugo-
slav Partisans. Please bring to attention of IGC
Director and ask that information be furnished De-
partment as to means of getting money to these
refugees. It is thought necessary funds can be se-
cured from private sources in this country and if
there are means of getting it to refugees Department
will endeavor to secure concurrence of military
authorities in giving refugees money to escape to
safer area or secure necessities while on Rab.
Regraded Unclassified
COPY
234
PARAPHRASE
TO : AMERICAN EMBASSY, LONDON, #280
FROM: SECRETARY OF STATE
DATE: JANUARY 11, 1944
With reference to the subject of refugees on
the Island of Rab, it is to be understood and em-
phasized that the statement relative to the possible
creation of a precedent in the rendition of assist-
ance to the refugees by the military authorities,
which was contained in our A-12 of January 3, is
that of the military authorities and represents a
point of view which these authorities may be re-
quired to take in view of the military situation.
Whenever it is possible, on the other hand, assist-
ance is rendered by non-military agencies behind
the lines which are there for that purpose.
Regraded Unclassified
235
F-Ects
F
1900
Regraded Unclassified
memorandum FOR SECRETARY OF WAR STIMSON
Re: Making Funds Available to Refugees on Island of Bab.
I wish to preface WY discussion by saying that in December
the Joint Chiefs of Staff were approached at the instance of
the Intergovern cental Committee on Refugees with a comprehen-
sive project to resoue refugees from the Island of Rab. This
plan would have necessitated direct assistance upon the part
of the military authorities involving questions of transport,
etc. On this basis the Commanding General in the North African
Theater of Operations decided that the military situation did
not permit the operation contemplated. However, since the
proposal which I as about to make is entirely different and such
simpler than that rejected by the Commanding General, and in
view of our Government's policy with respect to refugees
announced at the time of the establishment of the War Refugee
Board, I recommend the following for your urgent consideration.
Information we have received indicates that there are
presently some 1500 refugeos, montly Jewish, on the Island of
2ab in the Adriatie off the Delention const. They apparently
were taken there sous time ago by Yugoslav Partisans after
being freed from internment. The Island has changed hands
several times, but it is understood to be again in the posses-
sion of the Partisens.
It is believed that many of such wefugees might be able
to hire boats to bring them to Italy If they had the neces-
sary funds. Similar escapes apparently have been arranged by
Fugoslav refugees now in Italy. Funds are available to the
War Refugee Board, and probably also from private organizations
for this purpose and, it possible, should be sent to these
refugees as soon as possible.
230
- 2 -
As B method of accomplishing the foregoing, I suggest
the following possibility. If means of communication exist
between our armed forces and the Yugoslav Partisan leaders,
it is suggested that you or the Theater Commander transmit
& message to the latter requesting -
(a) that the Partisans furnish local currency to
refugees on the Island of Rab 80 that the latter may
by their own efforts arrange escape to Italy, it being
understood that such expenditures will be reimbursed in
U. S. dollars or in such other money as the Partisans
request;
(b) That the Partisans, in the event they cannot
furnish necessary local currency, aid the refugees in
arranging escape by guaranteeing to the boat owners and
other persons assisting in the escape that payment will
be made to them by the American military authorities
upon arrival of the refugees in Italy;
(c) That the Partisans keep the appropriate American
military authorities advised of their operations in this
field.
It will, of course, be necessary for the Theater Commander
to make arrangements for payments in Italy in certain cases to
persons bringing refugees there from the Island of Rab, and
possibly for certain other financial transactions. It is also
assential that the Theater Commander continue his policy of
caring for any refugees who may be able to reach Italy as the
result of their own efforts. Such other assistance as he may
be able to give will, naturally, be extremely valuable. It
may be made perfectly clear that the War Refugee Board assumes
full financial responsibility for the expenses of evacuating the
refugees from Rab and will reimburse all outlays.
Regraded Unclassified
237
- 3 -
If you think that the procedure indicated is feasible,
I am sure that you will agree that it should be executed as
promptly as possible in view of the uncertainty of the
continued possession of the Island of Rab by the Partisans.
This has been cleared with Mr. Stettinius who is in
agreement.
JBF:JWP:lhh 2/1/44
Regraded Unclassified
278
COPY
AIRCRAM
NO. A
1391
Clear
Time 6:00 0.0.
October 12, 1943
LOADON.
Department has received following telegram from Dr.
Goldman, world Jevish Congress:
,ПОТЕ Am being informed from London that 4000
Jewish refugees and Yugoslavs recently in
internments camps Yugoslavia have been freed by
Yugoslav partisians and removed to Adriatic
island of Rab. Understand food and medical sun-
plies urgently needed as island suffers serious
shortage. In view of possibility island being
recantured by Germans most desirable remove
refugees soon as possible to safer area. Southern
Italy Sicily or North Africa. May I respectfully
request to bring this matter to the attention of
authorities North Africa and Sicily asking them to
take necessary steps. UN DOTE.
Please refer to Executive Committee of the Inter-
governmental Committee and if you deem it advisable transmit
it to Burnhy for Tisenhover,
HULL
840.48 Refugees/
10/9/43 Eu CI/L
A-L
Mr. Pell
Regraded Unclassified
BJM
COPY
PLAIN
London
Dated November 4, 1943
Rec'd 11:38 p.m.
Secretary of State,
Washington.
7682, Fourth
Upon receipt of Department's airgram A-1391, October
12th regarding refugees on the Adriatic island of Rab, the
Embassy communicated its contents to the Director of the
Intergovernmental Committee on Refugees for the executive
committee and has received from him under date of November
2nd the following communication in which he suggests cer-
tain action by the Department; "Would you kindly refer to
your letter of the 22nd October 1943 in which you trans-
mitted a telegram which the Department of State had received
from Dr. Goldman of the World Jewish Congress regarding the
situation of certain Jewish refugees on the island of Rab
off the Dalmatian coast. We at once got into touch with
the World Jewish Congress here, and ascertained that the
information on which Dr. Goldman's telegram was based re-
lated to the position several months ago. They promised to
supply us with further information.
Meantime, I have received this morning from Professor
Brodetsky of the Jewish Board of Deputies a copy of a let-
ter sent to him by an Army Chaplain now in Italy who has
been in touch with Yugoslavian refugees in the Bari camp.
The letter of the Chaplain is dated 8th October 1943. At
that time, according to his information, nearly 3,000
Yugoslavian Jews were on the island, their position being
precarious since the island has changed hands several
times, but he suggested that their safety could be ensured
by their evacuation and concentration in the existing refugee
camp at Bari. He further suggested that failing direct
help the refugees might be able to hire Italian boats to
bring them to safety if they had the necessary funds.
Although the situation may have materially changed
since the Army Chaplain wrote his letter, there does seem
Regraded Unclassified
2:0
- 2 -
some chance that the military authorities in Italy might
be able to afford some assistance. Malin and I have con-
sidered very carefully what action is possible and we
suggest that a cable should be sent to the State Depart-
ment on the following lines: (One) if there are refugees
still on the island, the appropriate military authorities
in North Africa or Italy be invited to consider whether
there are any practical means of helping them. (Two) We
recognize that direct supply of transport would involve
military considerations about which we are not in a position
to express any opinion. (Three) Failing direct assistance,
however, it might be practicable to convey money to the
refugees, leaving it to them to make the best arrangements
they could for their escape. (Four) Those who did reach
the mainland could be kept in the Bari or some other camp
pending security and other arrangements. (Five) The cost
of transport or the money to be advanced is likely to be
comparatively small. If the Intergovernmental Committee
had to provide it, this would involve previous consultation
with the Governments of the United Kingdom and the United
States of America. This, however, might not be necessary
as the joint distribution committee or other Jewish
organizations might, and probably would be willing to
supply the necessary funds. In any case, Malin and I con-
sider that the question of ultimate finance should not delay
any immediate action that may be possible.
On the same ground of urgency, we are nutting forward
our suggestions in anticipation of the approval of the
executive committee.
We suggest that the Department of State be asked to
make the necessary approach to the appropriate military
authorities.
proposed to make suggestions contained in this letter, and
I may add that I have mentioned to Randall that we
that he saw no objection.
I shall be seeing Lord Winterton this afternoon, and
shall report the matter to him also".
WINANT
Regraded Unclassified
211
AIRGRAM
NO. A-12
CONFIDENTIAL
Time: 6:40 p.m.
January 3, 19411
akerbassy,
LONDON.
With reference assistance to refugees on Island of
Rab your 7682 November 4 following 18 quoted from letter
received from Joint Chiefs of Staff dated December 15,
1943 quote:
The Commanding General, North African Theater of
operations, has been consulted with regard to this matter
and, oursuant to his recommendation, it has been determined
that the military situation does not permit the military
authorities to render any direct assistance to these
refugees at this time.
The Theater Commander has reported that subplies and
facilities for displaced persons in Italy are already over-
strained, and that demands for these items should, if pos-
sible, be reduced. Aside from the fact that operational
needs do not permit the rendition of assistance to these
refugees, it is considered that to take such action might
create a precedent which would lead to other demands and
an influx of additional refugees for the care of whom the
military authorities would be unable to provide facilities
and supplies. Although recommending that no direct assist-
ince or funds be provided, the Theater Commander states
that he will continue, as in the past, to care for any
refugens who should be able to reach Italy as a result of
their own efforts.
Our latest information is that the refugees on the
Island of Rab, together with those at Otocac in Northwest
Croatia, total approximately 1,500. and that the majority
of these refugees are Jews unquote.
Since receipt of letter in reference Department has
official information Germans now hold Rab.
tion 88 you may deem appropriate to the Directorate of the
Please transmit such portions of the above communica-
Regraded Unclassified
212
- 2 -
Intergovernmental Committee and if the present information
of the Committee suggests means of aiding these refugees
Department should be informed.
HULL
Regraded Unclassified
Regraded Unclassified
244
We have been advised that the German Government
has never publicized stories of the atrocities inflicted
on the Jews and other minority groups. It is believed
that it would be helpful to get the true facts of those
stories across to the people in Germany and German-occu-
pied territory, as well as information concerning the
attitude of this Government toward such persecutions.
The War Refugee Board, its purpo e and program, should
be made known to the people of Europe.
Regraded Unclassified
Regraded Unclassified
Attached is the agenda prepared within the State Department and used by
Mr. Hull at the first meeting of the War Refugee Board.
-
-
Regraded Unclassified
IDENTIAL
1. Announce that general instructions have gone
ir representatives abroad advising them of the
dent's action and directing pertinent aotion in
respective fields,
2. Move for the immediate appointment of an Executive
motor charged with the responsibility of formulating
olfic proposals and directing action for the resoue and
servation of refugees to be submitted for the considera-
Ion of the Board,
3. State that full cooperation with the Executive
Director will be given by all officers of the Department
of State. The Executive Director shall obtain such
information or assistance RB he may require from the Chiefs
of Divisions of the Department. The files on refugee mat-
ters in the custody of the Visa Division will be available
for consultation by the Executive Director and will provide
full information of the past and present activities here
and situations abroad.
4. Notify the Hoard that the following Departmental
Order is being issued:
"The Executive Director and his officers shall
have the right of direct access to the Chiefs of the
appropriate Divisions of the Department of State in
order to obtain such information or assistance as he
may require in formulating his plans."
5. The Department will act as transmitting agent for
the Board in correspondence with the Intergovernmental
Committee and American Missions abroad,
6. Questions relating to the assignment of special
ttaches to American .issions will be considered at once
the Department and will consider recommendations from
he Board.
7. Announce that you have designated Mr. Stettinium
your alternate on the Board.
8. Suggest the Board approach the Congress for ade-
ate appropriations for the administrative expenses and
x its operating coate unless there are funds available
either war or Treasury Departments.
Regraded Unclassified
TO
THE
what - mir
248
HOLD FOR RELEASE
HOLD FOR RELEASE
HOLD FOR RELEASE
January 22, 1944
CAUTION: The following MUST EE HELD IN (ONFIDENCE until
relessed.
NOTE:
Release is for ALL REGULAR EDITIONS of MORNING
NEWSPAPERS of Sunday, Jenuary twenty-third, 1944.
Release by radio commentators, newscasters, etc.,
NOT EARLIER THAN 9:00 P.N., D.W.T., Saturday, January 22, 1944,
STEPHEN EARLY
Secretary to the President
The .esident today, by Executive Order, set up &
Far Refugee Board consisting of the Secretary of State, the
Secretary of the Treasury and the Secretary of Far, to take
action for the immediate rescue from the Nazia of EE many as
possible of the persecuted minorities of Europe -- racial,
religious or political -- all civilian victims of enemy
savagery.
The Executive Order declares that "it is the policy
of this Government to take all measures vithin its power to
rescue the victims of enemy oppression who are in imminent
danger of death and otherwise to afford such victims all
possible relief and assistance consistent with the success-
ful prosecution of the wer".
The Board is charged with direct responsibility to
the President in seeing that the announced policy is carried
out, The President indicated that while he would look directly
to the Board for the successful execution of this policy, the
Board, of course, vould cooperate fully with the Intergovern-
mental Committee, the United Nations Relief end Rehabilita-
tion Administration, and other interested international or-
ganizations.
The President stated that he expected to obtain the
cooperation of all members of the United Nations and other
foreign governments in carrying out this difficult but importent
task, He stated that the existing facilities of the State,
Treasury and Tar Departments would be employed to aid Axis
victims to the ^ullost extent possible. He stressed that it
was urgent that action be tekon at once to forestell the plan
of the Nazia to exterminate all the Jows and other persecuted
minorities in Europe.
It will be the duty of a full-time Executive Director
of the Board to arrange for the prompt execution of the plans
end programs developed and the moasuros insugurated by the
Board.
The Executive Order follows:
Regraded Unclassified
- 2
EXECUTIVE ORDER
ESTABLISHING A WAR REFUGEE BOARD
WHEREAS it is the policy of this Government to take all measures
within its power to rescue the victims of enemy oppression who are in
imminent danger of death and otherwise to afford such victims all
possible relief and assistance consistent with the successful prosecu-
tion of the war;
NOW, THEREFORE, by virtue of the authority vested in me by the
Constitution and the statutes of the United States, as President of
the United States and as Commander in Chief of the Army and Navy, and
in order to effectuate with all possible speed the rescue and relief
of such victims of enemy oppression, it is hereby ordered 85 follows:
1. There is established in the Executive Office of the President
a War Refugee Board (hereinafter referred to as the Board). The
Board shall consist of the Secretary of State, the Secretary of the
Treasury and the Secretary of War. The Board may request the heads
of other agencios or departments to participate in its deliborations
whenever matters specially affecting such agencies or departments are
under consideration.
2. The Board shall be charged with the responsibility for sceing
that the policy of the Government, as stated in the Preamble, is car-
ried out. The functions of the Board shall include without limita-
tion the development of plans and programs and the inauguration of
effective measures for (a) the rescue, transportation, maintenance and
relief of the victims of enemy oppression, and (b) the establishment
of havens of temporary refuge for such victims. To this end the
Board, through appropriate channels, shall take the necessary steps to
enlist the cooperation of foreign governments and obtain their parti=
cipation in the execution of such plans and programs.
3. It shall be tho duty of the State, Treasury and War Depart-
ments, within their respectivo spheres, to execute at the request of
the Board, the plans and programs so developed and the measures so
inaugurated. It shall be the duty of the heads of all agencios and
departments to supply or obtain for the Board such information and to
extend to the Board such supplies, shipping and other specified
assistance and facilities as the Board may require in carrying out the
provisions of this Order. The State Department shall appoint special
attaches with diplomatic status, on the recommondation of the Board,
to be stationed abroad in places where it is likoly that assistanco
can be rendered to war refugees, the dutios and responsibilitios of
such attaches to be defined by the Board in consultation with the
State Department.
4. The Board and the State, Treasury and War Departments are
authorized to accopt the services or contributions of any private per-
sons, private organizations, State agoncios, or agoncios of foreign
governmonts in carrying out the purposes of this Order. The Board
shall cooporato with all existing and futuro international organiza-
tions concerned with the problems of rofugoo rescue, maintenance,
transportation, rolief, rohabilitation, and resottlement.
Regraded Unclassified
249
- 3 -
5. To the extent possible the Board shall utilize the personnel,
supplies, facilities and services of the State, Treasury and War Do-
partments. In addition the Board, within the limits of funds which
may be mado available, may employ necessary personnel without rogard
for tho Civil Service laws and regulations and the Classification Act
of 1923, as amonded, and mako provisions for supplies, facilities and
services necessary to dischargo its rosponsibilities. The Board shall
appoint an Executive Director who shall servo as its principal exccu-
tivo officor. It shall be tho duty of the Executive Director to are
rango for the prompt oxocution of tho plans and programs dovoloped
and the measuros inaugurated by the Board, to superviso the activi-
ties of the spocial attaches and to submit froquont reports to tho
Board on the stops takon for tho rescuo and rolief of war refugoos.
6. The Board shall bo directly responsible to the Prosident in
carrying out the policy of this Government, as stated in tho Proamble,
and the Board shall report to him at frequent intervals concorning the
stops taken for the rescue and rolief of war refugoos and shall make
such rocommondations as the Board may deem appropriate for furthor
action to overcome any difficulties encountered in the rescue and ro-
liof of war refugeos.
FRANKLIN D. ROCSEVELT
M
THE WHITE HOUSE,
January 22, 1944.
- -
Regraded Unclassified
251
PEHLE AS EXECUTIVE DIRECTOR OF WAR REFUGEE BOARD
1. Pehle has backing of Jewish organizations, with whom
he has been dealing for months.
This includes World Jewish Congress and Joint
Distribution Committee. Also has backing of Emergency
Committee to Save the Jews of Europe.
2. Pehle has backing of leading men truly interested
in this program.
3. Pehle is O.K. with Hull and Stimson, if President
agrees.
4. Pehle is known to many foreign governments.
Has been dealing with representatives of foreign
governments for over three and one-half years - ever
since beginning of freezing control.
This includes the governments of the neutral
countries of Europe, the Governments in exile, the
governments of Latin America, the French Committee
of National Liberation, etc.
5. Pehle has been dealing with important aspects of this
whole matter and similar matters for months.
In many of these operations financing is the key
to the solution. Foreign Funds Control has been
handling the financial aspects of relief operations
for a long time.
6. Some of our accomplishments in this matter to date.
See attached memorandum.
7. Need for a man with a "name".
We have had men with "names" on this job for
several years - nothing has been-accomplished.
Regraded Unclassified
252
- 2 -
Pehle can handle most if not all of the problems
that a man with & "name" could handle. He will have
three cabinet officers back of him. And if it becomes
necessary in any particular case to have a big name
actually handling the job, Secretary Morgenthau will
step in and handle the job personally.
8. Put Pehle in as Acting Director and see how it works.
Regraded Unclassified
Regraded Unclassified
254
March 23, 1938.
President Roosevelt inquires of the
governments of refuge and settlement
whether they would be willing to join
the United States in setting up an
Intergovernmental Committee which would
seek to introduce order into the forced
migration of political and religious
refugees from central Europe.
May 16, 1938.
The President's Advisory Committee on
Political Refugees holds its first
meeting, the following being in
attendance: James G. McDonald, Hamilton
Fish Armstrong, Paul Baerwald, Joseph P.
Chamberlain, Basil Harris, James M. Speers,
and Rabbi Stephen S. Wise. Mr. McDonald
heads this Committee.
July 6, 1938.
Representatives of thirty-three govern-
ments meet at Evian. The United States
was represented by Myron C. Taylor
assisted by Robert Pell and George
Brandt of the State Department.
September 1938.
George Rublee, takes up his duties in
London as director of the Intergovern-
mental Committee set up at Evian. He
was named to this post by the President,
and continued as director until February
1939, when he was succeeded by Sir Herbert
Emerson.
October 17, 1939. Officers of Intergovernmental Committee
meet at White House. Lord Winterton,
chairman, Myron C. Taylor, vice chairman
and James G. McDonald, chairman of the
Advisory Committee are among those
present.
January 1941.
Intergovernmental Committee meets at
Cuidad Trujillo, Dominican Republic.
Among those addressing the meeting are
Regraded Unclassified
255
- 2 -
George Warren, representing the
Advisory Committee.
March 2, 1943.
The U. S. and British Governments
agree to meet at Bermuda to consider
the refugee problem.
April 19, 1943.
Bermuda conference opens. U.S.
delegation consists of Harold Willis
Dodds (president of Princeton
University Senator Scott Lucas (Ill.),
Representative Sol Bloom (N.Y.), and
"
R. Bordon Reams (State Department)
May 19, 1943.
Bermuda conference terminated. Details
of determinations are considered con-
fidential.
Regraded Unclassified
G
it OF ! net
1/ 0.71 11 April / / /
-
,
Allocation No. 44-58 257
THE WHITE HOUSE
Washington
JAN 29 1944
My dear Mr. Secretary:
By virtue of the authority vested in me by law I hereby allocate
from the appropriation entitled "Emergency Fund for the President,
National Defense, 1942-44,"
To
Amount
War Refugee Board
$1,000,000
to be expended by said Board in connection with emergencies affecting
the national security and defense for carrying out the functions of
the Board as prescribed by Executive Order 9417 of January 22, 1944.
The funds hereby allocated shall be available, without regard to
Section 3709 of the Revised Statutes (41 U. S. C. 5), for all
necessary expenses of the War Refugee Board in carrying out
Executive Order 9417, including employment of persons (including
aliens) or organizations, by contract or otherwise, in the District
of Columbia and elsewhere without regard to the civil service and
classification laws; acceptance and utilization of voluntary and
uncompensated services; transportation expenses outside the United
States without regard to the Standardized Government Travel Regula-
tions; actual transportation and other necessary expenses, and not
to exceed $10 per diem in lieu of subsistence, of persons serving
while away from their permanent homes or regular places of business
in an advisory capacity to or employed by the Board without other
compensation from the United States; purchase and exchange of law
books and books of reference; purchase of or subscription to
newspapers and periodicals; purchase of food, clothing, and medical
for the benefit of victims of war, without the necessity for cash
supplies within or outside the United States; cash payments to and
receipts where receipts are not obtainable; purchase, without
regard to statutory limitations as to price, maintenance, operation,
repair, and hire of moter-propelled or horse-drawn trucks and passenger- for
employees or others engaged in carrying out the purposes hereof;
carrying vehicles; payment of premiums on fidelity or other bonds
advances of monies without regard to Section 3648 of the Revised
Statutes (31 U. S. C. 529); exchange of funds without regard to Sec-
binding without regard to Section 11 of the Act of March 1, 1919
tion 3651 of the Revised Statutes (31 U. S. C. 543); printing and
(44 U. S. C. 111); and the reimbursement of other appropriations
Regraded Unclassified
258
- X -
from which payment may have been made for the purposes hereof:
Provided, That not to exceed $500,000 of the funds hereby allocated
shall be available for objects of a confidential nature and shall
be charged against the limitation for such purposes under said
appropriation, and shall be accounted for solely on the certificate
of the Executive Director of the Board.
Please arrange for the necessary transfer of funds and
advise the War Refugee Board accordingly.
Sincerely yours,
/2/ Franklin D. Roosevelt
The Honorable
The Secretary of the Treasury
Regraded Unclassified
Regraded Unclassified
260
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATEFeb. 2, 1944
Secretary Morgenthau
TO
FROM
J. W. Pehle
You will be interested in the attached
request for an appropriation sent by State to Budget
on January 28, after the establishment of the War
Refugee Board, without consulting us in any way.
State's description of the work and accomplishments
of the Intergovernmental Committee on Refugees constitutes
an inadvertent but nevertheless conclusive indictment
of the Intergovernmental Committee for its inaction.
Justial
Attachment
Regraded Unclassified
261
EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
WASHINGTON, D. C.
February 2, 1944
MEMORANDUM
TO:
Mr. John W. Pehle, Director
Foreign Funds Control Division
Room 288 1/2 Treasury Building
FROM:
Louis H. Bean
I passed on to Mr. Trott of our Estimates Division
your interest in seeing the justification statement cover-
ing request for appropriation of $5,000,000 for the Inter-
governmental Committee on Refugees. I am glad to send you
8. copy.
Enclosure
Regraded Unclassified
COPY
262
January 28, 1944
My dear Mr. Smith:
There is submitted herewith for your consideration
and, if you approve, for transmission to Congress for
inclusion in the-next deficiency bill, an estimate in
the sum of $5,000,000 for the Intergovernmental Committee
on Refugees. The justification which accompanies the
estimate sets out the purposes for which this
appropriation is required.
Sincerely yours,
For the Secretary of State:
/8/ G. Howland Shaw
G. Howland Shaw
Assistant Secretary
Enclosure:
Estimate.
A true copy of
the signed orig-
inal. /i/ GSH
The Honorable
Harold D. Smith,
Director of the Bureau of the Budget.
A-S/2
BF:EAL:JAD
Regraded Unclassified
263
COPY
Intergovernmental Committee on Refugees -
For the share of the United States of the
expenses of the Intergovernmental Committee on
Refugees and expenses of operations carried on
in connection with the work of the Committee,
without regard to the provisions of any other
act, $5,000,000, to be immediately available and
remain available until June 30, 1945.
Regraded Unclassified
264
THE INTERGOVERNMENTAL COMMITTEE ON REFUGEES
The President has approved the submission to Congress of an
estimate of $5,000,000 to carry on work in connection with the
Intergovernmental Committee on Refugees. Of this amount $1,000,000
is estimated to defray this Government's share of the expenses of
the Intergovernmental Committee, and $4,000,000 is estimated for
carrying out certain agreements which have been made for rescuing
and assisting refugees in various parts of the world.
Background -
The Intergovernmental Committee on Refugees was established
at the Evian Conference held at Evian, France in July 1938. The
meeting was called to consider the problem of refugees coming from
Central Europe who were suffering the persecutions of the Nazi
Government. President Roosevelt assumed the initiative in calling
the Evian Conference and it was attended by representatives of
thirty-two governments. It was decided to constitute the meeting
into a continuing committee of the whole to be known as the Inter-
governmental Committee on Refugees.
The Committee established its headquarters at London. Lord
Winterton, a member of the British Cabinet was made Chairman and
four vice-chairmen representing France, Brazil, the Netherlands
and the United States, together with the Chairman, constituted the
Executive Committee. In February 1939, a representative of the
Argentine Government was added to the Executive Committee. Mr.
Myron C. Taylor was the United States representative and he continues
to act in this capacity at the present time. A. director was ap-
pointed who was the executive officer of the Committee and he was
given a small staff of assistants.
During the first year of its existence the Committee was
chiefly concerned with efforts to negotiate with the Germans in
order to work out some orderly plan of migration for those who
because of their race, religion or political beliefs were being
oppressed by the Nazis. Before any major accomplishments were
achieved, however, the war broke out and the activities of the Com-
mittee were necessarily limited by conditions which the war imposed.
Activities thereafter largely consisted of making negotiations for
places of resettlement under 8. three to five year program with
various governments, including those of the Dominican Republic,
the Philippine Commonwealth, British Guinea and Northern Odessa.
Regraded Unclassified
- 2 -
265
During the early part of 1943 the British and American
Governments decided to call a meeting to examine in the light
of existing circumstances all possible methods of relieving the
distress of those in Europe who were victims of Nazi aggression.
This resulted in the convening of a Conference in Bermuda in
April, 1943, at which time a number of practicable measures
were adopted. Some of these were as follows:
1. That the staff of the Intergovernmental Committee
be increased and a management committee created.
2. That provision be made for the procurement of
public and private funds adequate for the work of the
Intergovernmental Committee.
3. That the membership of the Committee be broadened.
4. That the Intergovernmental Committee be invited
to revise its mandate.
5. That the United States and United Kingdom Governments
adopt and urge adoption by the European Allied Governments
of a joint declaration on the return of refugees to their
homes after the war.
Other recommendations pertained to negotiations with specific
allied and neutral governments to secure places of temporary or
permanent settlement for refugees.
Since the meeting in Bermuda the Intergovernmental Committee
has made considerable progress in carrying out the recommendations
of the Conference. In the first place the mandate of the
Committee as defined in July 1938 has been extended. At a meeting
of the Executive Committee on August 4, 1943 the following mandate
was adopted:
"The Intergovernmental Committee shall extend its
mandate 80 as to include, as may be found necessary and
practicable, in addition to those already within the
mandate, those persons, wherever they may be, who as a
result of events in Europe have had to leave, or may have
to leave, their countries of residence because of the
danger to their lives or liberties on account of their
race, religion or political beliefs.
Regraded Unclassified
266
- 3 -
"With regard to persons coming wi thin the mandate
as extended the Executive Committee be empowered by the
member states to undertake negotiations with neutral
or allied states or with organizations, and to take such
steps as may be necessary to preserve, maintain and
transport them. The Executive Committee shall be em-
powered to receive and disburse for the purposes
enumerated above, funds both public and private."
Thus, the Intergovernmental Committee is intended to be an
international body for the protection of various nationals as
well as stateless persons. Where there is no other international
body operating in a particular area, it will be to the Inter-
governmental Committee that the governments concerned and the
refugees will look for help.
The membership of the IGC has also been increased. The
present member-governments and those who have been asked to
join are given on an attached sheet.
The staff of the present Intergovernmental Committee now
includes the Director, Sir Herbert Emerson, who serves without
remuneration while continuing as the League of Nations High
Commissioner for Refugees; he is assisted by 8. Vice-Director,
Mr. Patrick Malin, of the United States; Dr. Gustav Kullman,
& Swiss citizen serves as honorary assistant director; and
Dr. John Gottlieb Sillem, a Netherlands diplomat, is the
secretary. It is anticipated that additional administrative
and clerical help will be added most of whom will be
representatives of the Committee who are to serve in branch
offices which it is proposed to establish in Algiers, Naples,
Lisbon and Madrid.
In the near future it is expected that a joint declaration
will be issued by the various allied nations concerning the
repatriation of persons who have been displaced by the war. The
United States, Great Britain and Soviet Russia have already
agreed on the wording of the declaration and when issued it is
thought that the effect will be to encourage neutral countries
to provide asylum for those who are so fortunate as to escape
from the Nazis. The publication of the statement will be one
of the important accomplishments of the Committee.
Finances of the Committee -
In 1938 it was determined that expenses of the Committee
Regraded Unclassified
266
- 3 -
"With regard to persons coming wi thin the mandate
as extended the Executive Committee be empowered by the
member states to undertake negotiations with neutral
or allied states or with organizations, and to take such
steps as may be necessary to preserve, maintain and
transport them. The Executive Committee shall be em-
powered to receive and disburse for the purposes
enumerated above, funds both public and private."
Thus, the Intergovernmental Committee is intended to be an
international body for the protection of various nationals as
well as stateless persons. Where there is no other international
body operating in a particular area, it will be to the Inter-
governmental Committee that the governments concerned and the
refugees will look for help.
The membership of the IGC has also been increased. The
present member-governments and those who have been asked to
join are given on an attached sheet.
The staff of the present Intergovernmental Committee now
includes the Director, Sir Herbert Emerson, who serves without
remuneration while continuing as the League of Nations High
Commissioner for Refugees; he is assisted by a Vice-Director,
Mr. Patrick Malin, of the United States; Dr. Gustav Kullman,
a Swiss citizen serves as honorary assistant director; and
Dr. John Gottlieb Sillem, a Netherlands diplomat, is the
secretary. It is anticipated that additional administrative
and clerical help will be added most of whom will be
representatives of the Committee who are to serve in branch
offices which it is proposed to establish in Algiers, Naples,
Lisbon and Madrid.
In the near future it is expected that a joint declaration
will be issued by the various allied nations concerning the
repatriation of persons who have been displaced by the war. The
United States, Great Britain and Soviet Russia have already
agreed on the wording of the declaration and when issued it is
thought that the effect will be to encourage neutral countries
to provide asylum for those who are so fortunate as to escape
from the Nazis. The publication of the statement will be one
of the important accomplishments of the Committee.
Finances of the Committee -
In 1938 it was determined that expenses of the Committee
Regraded Jnclassified
- 4 -
267
meetings should be shared by the member governments according to
the Evian Scale which was an adaption of the League of Nations
Scale. This system continued until the IGC meeting of July 1939,
when it was resolved "that the Director contrive to make every
effort to keep expenses of his office to a minimum; that the govern-
ments participating in the Committee contribute to the expenses of
future meetings of the Committee according to the Evian Scale and
make such contribution to the expenses of the Director's office as
they may deem appropriate".
On June 25, 1938 Congress appropriated $50,000 as this
Government's share of the IGC expenses. On June 30, 1939 Congress
made an additional appropriation of $20,000 and continued available
the unexpended balance of the previous appropriation until June 30,
1940. By Acts approved on June 27, 1940, July 3, 1941 and July 2,
1942 the unexpended balances of previous appropriations were
extended to June 30, 1943. At the present time, no money is
available to meet this Government's share of the Committee expenses.
Expenses of the IGC are classified into two groups: (1)
administrative expenses, which include those necessary for main-
taining the headquarters office at London and the costs of the
meetings of the IGC, and (2) operational expenses, which are defined
as all expenses other than administrative expenses. These include
the cost of providing relief to refugees and expenses of maintaining
IGC offices abroad, with the exception of the headquarters office
at London.
In accordance with present resolutions as adopted by the
Committee, member governments may be expected to share administrative
expenses according to the Evian scale, which incidentally may have
to be adjusted to meet present needs, but they cannot be expected
to share the operational expenses. At the August 4, 1943 meeting
America of of other the the than Committee governments jointly administrative to it underwrite of was the resolved United expenses, be considered the Kingdom that, expenditures it "In be individually, and agreed view the of of United that the the all Committee and agreement States projects that of the
and governments the financing of the thereof United Kingdom and the United States of America
be consulted before B. project is sanctioned or expenditure incurred
thereon." It was further understood that when a clearer idea has
been obtained of the money required for the efficient conduct of
the Committee's work under its new commitments, an invitation
will be addressed to all the member governments inviting them to
abilities and their interest in the humanitarian work of the
contribute to this expenditure also, in accordance with their
Regraded Unclassified
268
- 5 -
Committee. It is possible that other Governments may contribute
to operational expenses but for the present it must be assumed that
the British and the American Governments may have to pay the entire
operational costs.
For the calendar year 1944 the Director estimates that
administrative expenses of the Committee will be twenty-one
thousand pounds. Operational expenses are estimated to be one
million pounds. Assuming that this Government should contribute
to the total expenses of 1,021,000 pounds according to the original
Evian Scale, our share of the expenses would be $776,317.62. The
original Evian Scale gave this country one hundred eight points
out of a total of five hundred seventy-one points. Considering
the value of & pound to be four dollars and two cents, our share
of the costs is estimated to be the figure given above.
In view of our previous agreement to share operational
expenses equally with the British, and the fact that other Govern-
ments cannot be expected to share these costs, an additional
$233,783, or a total of one million dollars, is requested to meet
our share of IGC expenses.
Expenditures for other refugee projects -
For the most part projects for the relief and rescue of
refugees in Europe in which this Government may be interested are
referred to the IGC. However, as stated above, this Government
and the British have an understanding that they may undertake,
subject to legislative consent, to finance jointly various under-
takings on behalf of refugees which seem advisable. In such
undertakings the IGC may or may not be asked to assist. While it
is impossible to estimate the exact requirements for these purposes,
it is essential that a reasonable sum be set aside to meet the
requests for assistance which have been made and will be made in
the near future.
There are in various parts of Europe a large number of refugees,
& majority of whom are Jewish persons, who are in need of assistance
because of Nazi persecution. The Department is at present interested
in several plans of relief for these persons which will require
expenditure of funds. While it is impossible to estimate the exact
requirements it is essential that a reasonable sum be set aside to
meet the requests for assistance which have been made and will be
made in the near future.
Regraded Unclassified
269
- 6 -
The most extensive project for relief and assistance to
refugees which is under consideration at present is one calling
for an expenditure of $10,000,000 for persons now located in
Rumania and France. It has been proposed that several private
associations donate $2,000,000 and that this Government agree to
provide $4,000,000 if the British furnish a like amount. Inquiries
have been directed to the Governments of Switzerland and Sweden
as to whether they require help in caring for the large number of
refugees who are now located in those countries. It is anticipated
that & substantial amount may have to be spent to relieve the
burden which has been imposed upon Sweden and Switzerland. It
is likely also that money will be necessary to aid refugees
now in Italy. Because of the uncertainties and unforeseen
contingencies which are constantly arising no one can foresee
the exact cost of all these undertakings.
This money is to be spent primarily in areas or for projects
which do not fall within the scope of the United Nations Relief
and Rehabilitation Administration, and, except that which is
specially designated as the contribution of this Government
to the Intergovernmental Committee, shall be spent only on
projects approved by both the British and American Governments.
Regraded Unclassified
270
Intergovernmental Committee on Refugees
Member Governments and those Invited to Join
Governments Invited to Join Following
Member Governments
Meeting of Executive Committee
as of August 4, 1943
of IGC August 4, 1943
United States
South Africa (accepted by telegram no. 499
Argentina
from London, January 19, 1944)
Australia
Czechoslovakia (accepted by telegram no. 499
Belgium
from London, January 19, 1944)
Bolivia
Egypt (accepted by telegram no. 499 from
United Kingdom
London, January 19, 1944
Brazil
Ethiopia
Canada
Greece
Chile
Iceland
Colombia
India
Cuba
Iran
Denmark
Iraq
Dominican Republic
Luxemburg (accepted by telegram no. 499
Ecuador
from London, January 19, 1944)
France
Poland (accepted by telegram no. 499
Haiti
from London, January 19, 1944)
Honduras
Portugal
Ireland
Salvador
Mexico
Spain
Nicaragua
Turkey
Norway
Union of Soviet Socialist Republics (accepted
New Zealand
by telegram no. 9034 from London Dec. 29, 1943
Paraguay
Yugoslavia
Netherlands
Peru
Former Members Invited to Re-join
Sweden
Following August 4, 1943 Meeting
Switzerland
Costa Rica
Uruguay
Guatemala
Regraded Unclassi
271
COPY
DEPARTMENT OF STATE
LIBERATED AREAS DIVISION
February 2, 1944
TO:
Mr. John W. Pehle,
Special Assistant to the Secretary,
Treasury Department.
FROM: Mr. Edward G. Miller, Jr.
In accordance with our conversation this morning,
I enclose herewith a copy of my memorandum of January 31,
1944 to Mr. Acheson and Mr. Stettinius, together with a
copy of a memorandum approved by Mr. Long, regarding
the division of responsibility between the War Refugee
Board and the United Nations Relief and Rehabilitation
Administration.
Please call me when you want to discuss this.
/8/ Eddie
LA:EGM:mkg
Regraded Unclassified
COPY
272
DEPARTMENT OF STATE
LIBERATED AREAS DIVISION
January 31, 1944
A-A
Mr. Acheson:
U
Mr. Stettinius:
With reference to the President's Executive Order
of January 22, 1944 creating the War Refugee Board, it
seems essential before the Board commences operations
to consider and establish clearly the division of responsi-
bility between the Board and the United Nations Relief and
Rehabilitation Administration with respect to assistance
to refugees. The question is raised in this memorandum
because of the possibility of doubt in this respect
arising from the wording of the Executive Order.
The Order states that "it is the policy of this
Government to take all measures within its power to rescue
the victims of enemy oppression who are in imminent danger
of death and otherwise to afford such victims all possible
relief and assistance consistent with the successful
prosecution of the war" and that "the Board shall be
charged with the responsibility for seeing that the policy
of the Government is carried out". More specifically,
the Order states that the function of the Board shall
include, in addition to activities in connection with the
rescue of the victims of enemy oppression, the maintenance
and relief of such victims and the establishment of havens
of temporary refuge for them. The Order also states that
the Board shall cooperate with all existing and future
international organizations concerned with the problems
of refugee rescue, maintenance, transportation, relief,
rehabilitation and resettlement.
The UNRRA Agreement provides in the preamble for
the making of preparations and arrangements for the
return of prisoners and exiles to their homes and in
Article I, 2, (a) states that the purposes of the
Administration shall be to plan, coordinate, administer,
or arrange for the administration of measures for the
relief
Regraded Unclassified
273
- 2 -
relief of victims of war in any area under the control of
any of the United Nations. It was clearly contemplated
by the Resolutions and Reports at Atlantic City that
it should be one of the functions of UNRRA to care for
refugees originating from enemy territory but located in
United Nations territory pending their repatriation or
resettlement. UNRRA is accordingly planning to take over
the administration of certain refugee camps in North Africa
to which there have been or will be transported refugees
of various nationalities from enemy territory. I under-
stand, however, that the view has been expressed by persons
connected with the War Refugee Board that it should be
part of the functions of the Board to take over the
administration of some or all of these camps.
It seems clear that under their respective terms of
reference both UNRRA and the War Refugee Board may
engage in operations of this type. However, it would
seem that the need which the Board was created to fill
was to have an agency to devote itself to rescuing victims
of oppression by negotiating for their withdrawal from
enemy territory. This is a function which UNRRA was
obviously not created to perform.
It is recommended, therefore, that the following
division of responsibility be agreed upon between the
War Refugee Board and UNRRA:
1. The War Refugee Board shall confine itself to
taking measures to secure the withdrawal of victims of
oppression from enemy or enemy-occupied territory and
transporting them to areas under the control of the
United Nations where they may be cared for by UNRRA. If
in certain cases it is possible for the Board to bring
these persons only to neutral territory, then it may be
the function of the Board to assist them in such territory
since UNRRA would not be entitled to operate therein.
2. UNRRA shall be charged with the responsibility
of assistance to such persons upon their arrival in
United Nations territory pending their repatriation or
resettlement.
The foregoing does not take into account the functions
of the Intergovernmental Committee on Refugees in this
field. There is attached hereto a memorandum drafted by
Mr. Brandt
Regraded Unclassified
274
- 3 -
Mr. Brandt and approved by Mr. Long prior to the creation
of the War Refugee Board which is concerned with the division
of responsibility between UNRRA and the Intergovernmental
Committee. Since I do not know what the future of the
I.G.C. will be, I am making no recommendation with respect
to this matter. The Report of the Sub-Committee on Dis-
placed Persons at the Atlantic City Conference reflected
the view of the United States Delegation on this subject
as follows: "UNRRA will assist in the care and repatria-
tion of such of these persons as can, and are willing to,
return to their countries of origin or of former residence.
The Inter-Governmental Committee has the function of
finding places of settlement for such of them as fall
within its competence and as cannot or do not desire to be
so repatriated. It should be the responsibility of the
relief organs of UNRRA to assist, for 8. reasonable period,
in the care of such of these refugees as cannot be
repatriated, until the Inter-Governmental Committee is pre-
pared to remove them to new places of settlement."
The attached memorandum seems to accord with the
views expressed at Atlantic City except that the last
sentence of the second paragraph seems open to some
question insofar as it states that neither UNRRA nor the
I.G.C. shall have any responsibility toward those refugees
who refuse repatriation or return home by UNRRA; it has
been my understanding that in such cases it would be one
of I.G.C.'s principal functions to effect their resettle-
ment in new homes.
Edward G. Miller, Jr.
LA:EGM:mkg
Regraded Unclassified
275
COPY
A-L/B
January 21, 1944
A-L - Mr. Long:
Upon your request and in completion of our work on
refugee matters, I submit the following recommendation for
determining responsibility for refugees as it may lie between
the Inter-Governmental Committee on Refugees and UNRRA.
The determination of responsibility between the two
organizations named should be made on territorial lines.
UNRRA operates only in the areas under the control of any
of the United Nations. Therefore, it should repatriate
or return to their homes any refugees, i.e., displaced
persons, found in any of those areas whose countries of
nationality or whose homes are within any such area. This
activity is authorized by the UNRRA agreement, as I under-
stand it. It may be further noted that Resolution No. 10
adopted at the UNRRA meeting at Atlantic City recommends
that the Director General of UNRRA take steps to obtain the
cooperation of the Inter-Governmental Committee on Refugees,
among other agencies, in repatriating displaced persons. It
should be understood that areas under the control of any of
the United Nations mean conquered enemy territory, as well
as liberated areas and United Nations territory which has
not come under occupation of the enemy during the war.
Finally, it should be understood that no responsibility
either of UNRRA or the Inter-Governmental Committee rests
toward those refugees found within those areas who refuse
repatriation or return home by UNRRA.
There remain then the neutral states in whose territory
the Inter-Governmental Committee on Refugees should operate
to repatriate, return home or resettle refugees located
temporarily therein.
Each of the two organizations within its respective
areas of responsibility, as indicated above, should be pre-
pared to care for and maintain to the extent necessary
the refugees toward whom it is responsible, pending their
disposition as proposed above.
referred to Assistant Secretary Acheson, American representa-
If you approve, I suggest that this memorandum be
tive on the Council of UNRRA, to consider with the other
Departmental officials concerned, and then to obtain UNRRA
and IGC agreement.
A-L/BRANDT:MSL
Regraded Unclassified
COPY
276
OFFICE OF
THE UNDER SECRETARY OF STATE
WASHINGTON
February 2, 1944
Dear Mr. Pehle:
I enclose herewith a Department of State file
pertaining to the administration of relief for surviv-
ing refugees in Europe together with a copy of a cable
on the matter which has been prepared in the Depart-
ment. It appears, however, that the proposed cable
and cable No. 279 to Bern, sent at the request of the
War Refugee Board, are not entirely consistent. We
think, therefore, that appropriate representatives of
the War Refugee Board may wish to review this file and
perhaps draft a more appropriate communication to
London on the matter. Will you be good enough to re-
turn the enclosed file to me after it has been re-
viewed.
With best wishes,
Sincerely yours,
/s/ Hayden Raynor
HAYDEN RAYNOR
Encs.
Mr. John W. Pehle,
Director of Foreign Funds Control,
Department of the Treasury,
Washington, D. C.
Regraded Unclassified
COPY
277
CONFIDENTIAL
No. A
Time
AMEMBASSY,
LONDON.
Concerning the proposal that relief for surviving
Jewish refugees in Europe be administered by the
International Red Cross referred to in the Embassy's
despatch No. 12660, December 8, and its enclosure of
a letter from the Director of the Intergovernmental
Committee, dated December 7, the Department requests
that you transmit to the Director the following com-
ments which refer to numbered paragraphs of his letter
under reference:
2. The Department agrees to the sum of three
hundred thousand Swiss francs, but this Government
cannot contribute its share until funds which have been
requested have been authorized. You will be advised
as soon as funds for this purpose are available.
The request of the International Red Cross for
permission to purchase food and supplies in Hungary and
Rumania will be considered jointly by the State Department,
the Treasury Department and the British Embassy. The
Department will advise you assoon as possible concerning
the results of the discussions.
3.
(a) Approximately two million dollars.
(b) This Government is prepared to share
equally with the British Government such part of the
total cost as remains after contributions have been
received from private organizations. The share of each
of the
Regraded Unclassified
278
-2-
of the two governments may amount to four million dol-
lars. In this connection the President has approved a
request for funds, and we are asking Congress for an
appropriation.
The Department concurs in the suggestions concern-
ing the Intergovernmental Committee contained in
sub-paragraphs (1), (2) and (3) of the Director's let-
ter under reference.
The Department also concurs in the proposal that
the Intergovernmental Committee should be the authority
through which private as well as government funds are
received and disbursed for the purpose of miding and
transporting refugees.
With further reference to the Director's letter, the
Department is studying the suggestion that the Inter-
governmental Committee be designated as the authority
through which private organizations would approach the
American and British Governments for licenses directly
concerned with the relief of refugees in Europe and be
the authority responsible for the fulfilment of condi-
tions imposed. As there is no necessity for an immediate
decision concerning this proposal, the Department will
advise you further regarding it.
Please advise the Department when the project under
reference is submitted to the Executive Committee of the
Intergovernmental Committee.
840.48 Refugees/4870
1/26/44
Regraded Unclassified
COPY
279
THE FOREIGN SERVICE
OF THE
UNITED STATES OF AMERICA
AMERICAN EMBASSY
No. 12660
London, December 8, 1943.
Subject: Refugee Relief Project Through
The International Red Cross.
The Honorable
The Secretary of State,
Washington.
Sir:
In pursuance of the Department's telegram No. 7287,
November 17, 1943 and the Embassy's telegram No. 8328,
November 29, to the Department, I have the honor to en-
close herewith the text of a letter dated December 7,
1943 from the Director of the Intergovernmental Committee
setting forth the present status of the proposal for
relief of refugees in Europe through the International
840.48 REFUGEES/4870
Red Cross. It will be noted that the Director seeks
clarification from the American and British Governments
with regard to certain points, after which the proposal
will be submitted to the Executive Committee.
The Department's instructions are requested.
Respectfully yours,
PS/JB
For the Charge d'Affaires ad interim:
/5/ W. J. GALLMAN
W.J. Gallman
First Secretary of Embassy
Enclosures:
1. Copy of letter of December 7, 1943
(171/98) from the Director of the
Intergovernmental Committee.
2. Copy of translation of telegram
from International Red Cross Committee
to London Delegation.
3. Copy of Memorandum by Mr. Schwarts,
dated November 14, 1943.
CC/PB
Regraded Unclassified
280
COPY
Enclosure No. 1 to despatch
No. 12660 of December 8, 1943,
from the Embassy at London,
England.
INTERGOVERNMENTAL COMMITTEE
Director:
11d Regent Street,
Sir Herbert Emerson,
London, S.W.1.
G.C.I.E., K.C.S.I.,C.B.E.
7th December, 1943.
171/98
Dear Mr. Bucknell:
In continuation of my letter No. 17/98, dated 26th November,
1943, relating to the question of relief to groups of surviving
Jews in Europe, I am now writing to say that we have received
through the London Delegation, a reply from the International Red
Cross. This was in German, and was sent in cipher through the
Swiss Legation in London. I attach a copy of the translation.
(Enclosure I). You will see from this, first, that the Inter-
national Red Cross is already in a position, through existing
Red Cross Delegates, to undertake distribution and to exercise
effective control in Rumania, Croatia and Hungary; second, that
it is prepared to set up & Delegation for the purpose in Slovakia
and, third, that 80 far as Germany and occupied territories are
concerned, both the opportunities and agencies for affording re-
lief are much more uncertain, except that relief can be given
to internees in Theresienstatd. Even in these territories, how-
ever, other opportunities are likely to arise from time to time.
2. In order to take advantage of existing and potential op-
portunities, the International Red Cross has suggested that the
sum of 300,000 Swiss francs should be placed at its disposal. This
appears to be 8. reasonable request. It would render regular ac-
counts, and would observe the other conditions stated by us, and
mentioned in my letter to you of 26th November. You will observe,
however, that the International Red Cross has laid stress on the
difficulty of purchasing food and other requirements in neutral
countries, and has, therefore, suggested that it should have
authority to make purchases in Hungary and in Roumania, where it
is still possible to obtain certain varieties of food. This sugges-
tion raises a question of policy affecting the blockade, on which
We are not in 8. position to express any opinion, but which will,
no doubt, be considered by the American and British Governments.
Regraded Unclassified
281
- 2 -
3. Before we are in a position to place the scheme before the
Executive Committee, there are several points which require clari-
fication:-
First there is the question of the source, or sources from which
the necessary funds will be furnished. In your letter of the 1st
October, 1943, there was the suggestion that private funds were
available in the United States, but that in any case your Govern-
ment, in consultation with the British Government, would be pre-
pared to regard the project, if approved by the Executive Committee,
as one, the cost of which, should be shared equally by the American
and British Governments, subject, of course, to previous consulta-
tion with the two Governments before the project was sanctioned
or expenditure incurred thereon. The matters requiring clarifica-
tion from the financial point of view are, therefore, the following:-
(a) What part of the funds, if any, will be supplied
from private sources? and
(b) are the British and American Governments prepared
to share the cost in so far as it is not met from
private funds?
The further point relates to the functions of the Intergovern-
mental Committee. It is suggested, as implied in your letter
of October 1, 1943, that the Intergovernmental Committee
should be the authority,
(1) through which funds are placed at the disposal of
the International Red Cross,
(2) to which the International Red Cross would render
regular accounts, and
(3) which would be responsible to see that the condi-
tions attaching to the grant are satisfied by the
International Red Cross.
We would suggest that this should apply not only to funds from
Government sources, but also to funds, if any, from private
sources. You will remember that one of the recommendations
adopted by the Executive Committee at its meeting of the 4th
August, 1943, was that "the Executive Committee shall be em-
powered to receive and disperse for the purposes of preserv-
ing, maintaining and transporting refugees, funds both public
and private."
The present occasion seems to be a suitable one to intro-
duce the principle of utilising the Intergovernmental Committee,
in suitable cases, for the expenditure of private funds, and
since the manner in which the funds in this particular case
Regraded Unclassified
282
- 3 -
are to be expended is subject to certain conditions, and can
only be made available in the countries concerned through
licence, it seems reasonable that, if the Intergovernmental
Committee is to be the authority responsible to see that the
conditions are satisfied, it should be the agency through which
funds are placed at the disposal of the International Red Cross.
When the above points are clarified the case will be sub-
mitted to the Executive Committee for consideration.
4. During the course of our enquiry, we have obtained some
information regarding the relief which is already being given
to Jews in Europe. We had the advantage of discussion, while
he was in London, with Mr. Schwartz, Executive Head in Europe
of the Joint Distribution Committee, and he was good enough
to give us & memorandum of what his organisation is doing in
this direction. I attach a copy of his note (Enclosure II).
In this connection I may also refer to my letter to you
of the 10th November, requesting certain information relating
to licences granted by the United States Treasury for similar
purposes. We have not received a reply to that letter, or to
a similar letter which was addressed to the British Foreign
Office. We are, therefore, not in & position to comment fully
on this means of assistance, but we would suggest that, where it
is organised and carried out by reliable and experienced bodies,
such as the Joint Distribution Committee, it deserves all the
encouragement that can be given, consistent with considerations
of policy. It might be convenient for the Intergovernmental
Committee to become the authority through which all private
bodies should approach the American and British Governments
for licences directly concerned with the relief of refugees in
Europe, and to be the authority responsible to see that such
conditions as may be imposed by those Governments are satisfied.
This, however, is a matter of a more general character, which
should not be allowed to delay the disposal of the specific case
now under consideration.
I have sent a copy of this letter to Mr. Randall.
Yours sincerely,
/s/ H. M. Emerson.
Howard Bucknell, Jnr.,
Embassy of the United States of America,
1, Grosvenor Square, W.1.
Regraded Unclassified
283
COPY
Enclosure 2 to despatch
No. 12660 of December 8, 1943
from the Embassy at London,
ENCLOSURE I
England.
INTERNATIONAL RED CROSS COMMITTEE TO LONDON DELEGATION
(Translation of Telegram received in German in cipher by
Swiss Legation, London, on December 3rd, 1943)
Your cable No. 2508 and letter No. 2671 clarified
the questions referred to us. International Red Cross Com-
mittee is grateful to have confidence of World Jewish Con-
gress and Intergovernmental Committee. According to them,
relief action is envisaged only for Jews, and not, as World
Jewish Congress anticipated at the beginning, generally for
people affected by war without discrimination as to race and
religion. The difficulties pointed out in our No. 7636 con-
cerning Jewish relief are due to the fact that the German
authorities do not recognise any official immixture of the
International Red Cross Committee in such matters, which they
regard as having internal political character. There are,
however, the following possibilities of relief action:
1. Roumania, Croatia, Hungary. The presence of
Red Cross Delegate permits the setting up of distribution
machinery and effective control. Needs in those parts are
known to us.
2. Slovakia. We would foresee setting up of
Delegation in 80 far as means put at our disposal would
justify relief action.
3. Germany and Occupied Territories. Possibili-
ties of action much more limited and in part recently entire-
ly supporessed. Lack of funds prevented us frequently from
starting relief work on behalf of Jews, particularly in
Poland. At present Theresienstadt with a minimum of 50,000
Jews plus deportees from Denmark is probably only place where
relief despatches would certainly reach recipients. Extension
of relief action might open new possibilities which previous-
ly had to be abandoned owing to lack of funds. We propose to
Intergovernmental Committee to put a maximum of 300,000 Swiss
Francs at our disposal in order to be able to carry out quick-
ly relief actions as the occasion arises, and in 80 far as
there is 8. guarantee to administer relief according to pur-
pose for which designed. We would report in respect of each
relief action carried out as well as in respect of goods
purchased and despatched and about success. In view of the
Regraded Unclassified
283
COPY
Enclosure 2 to despatch
No. 12660 of December 8, 1943
from the Embassy at London,
ENCLOSURE I
England.
INTERNATIONAL RED CROSS COMMITTEE TO LONDON DELEGATION
(Translation of Telegram received in German in cipher by
Swiss Legation, London, on December 3rd, 1943)
Your cable No. 2508 and letter No. 2671 clarified
the questions referred to us. International Red Cross Com-
mittee is grateful to have confidence of World Jewish Con-
gress and Intergovernmental Committee. According to them,
relief action is envisaged only for Jews, and not, as World
Jewish Congress anticipated at the beginning, generally for
people affected by war without discrimination as to race and
religion. The difficulties pointed out in our No. 7636 con-
cerning Jewish relief are due to the fact that the German
authorities do not recognise any official immixture of the
International Red Cross Committee in such matters, which they
regard as having internal political character. There are,
however, the following possibilities of relief action:
1. Roumania, Croatia, Hungary. The presence of
Red Cross Delegate permits the setting up of distribution
machinery and effective control. Needs in those parts are
known to us.
2. Slovakia. We would foresee setting up of
Delegation in so far as means put at our disposal would
justify relief action.
3. Germany and Occupied Territories. Possibili-
ties of action much more limited and in part recently entire-
ly supporessed. Lack of funds prevented us frequently from
starting relief work on behalf of Jews, particularly in
Poland. At present Theresienstadt with 8. minimum of 50,000
Jews plus deportees from Denmark is probably only place where
relief despatches would certainly reach recipients. Extension
of relief action might open new possibilities which previous-
ly had to be abandoned owing to lack of funds. We propose to
Intergovernmental Committee to put & maximien of 300,000 Swiam
Francs at our disposal in order to be able to carry out prink-
ly relief actions as the occasion arises, and in so far 12
there is & guarantee to administer relief severing to N°
pose for which designed. We would report in of such
relief action carried out 18 wall " In respect of zooks
purchased and desputabed 9.115 about Plea of the
284
-2-
fact that possibilities of purchase from neutrals are extreme-
ly limited and insufficient, it would be desirable to have
authority to use funds for purchases in Hungary and especially
Roumania, where it is possible to obtain dried vegetables,
soups, farinaceous products (pates alimentaires), tinned goods,
flour, cured meats, venison and fats. From neutrals medica-
ments and pharmaceutical products are obtainable. We accept
without any reservations conditions (1) to (4) of your cable
2508. Detailed letter will follow shortly.
Regraded Unclassified
285
COPY
Enclosure 3 to despatch No.
12660 of December 8, 1943,
from the Embassy at London,
England.
MEMORANDUM BY MR. SCHWARTZ
HELP TO GROUPS OF REFUGEES IN EUROPE
The Joint Distribution Committee sends food parcels from
Lisbon to the Jews in the Theresienstadt Concentration Camp
and also to the Jews in Poland, particularly those in the
ghettos. In the case of Theresienstadt the Czech Government
sends food parcels to their nationals who are interned in that
Camp while the J.D.C. sends its parcels largely to non-Czechs
who are in the Camp. The Czech Government are sending to-day
about 6,000 parcels a month to 3,000 of its nationals while
the J.D.C. sends about 5,000 packages to 2,500 non-Czech nation-
als. The packages contain sardines, dried fruits and almonds,
and each package weighs about 500 grammes so that each in-
ternee on our list receives 1 kg. of food per month. These
packages are sent under License from the United States Treas-
ury which has authorised the expenditure of 12,000 dollars
a month for this purpose. Only food indigenous to Portugal
may be sent under the Licence. The United States Legation at
Lisbon must be satisfied that the parcels are reaching their
proper destination.
In the case of Poland the evidence of receipt has become
scarcer and scarcer and because of this the sending of parcels
has, for the time, been stopped. Later, communication has been
taken up with the Jewish Community in Cracow which has acknow-
ledged receipt of parcels addressed to them. They undertook
further distribution of these parcels. It is hoped that through
the Jewish Committee in Cracow, it will now be possible to dis-
tribute more food parcels to Jews in Poland. Under our Licence,
we are authorised to spend $12,000 8. month for packages to
Poland.
At the present time, the J.D.C. is sending about 1000 par-
cels a month from Teheran to Polish refugees in Russia. Customs'
duties and postage account for two thirds of the total cost
of the packages. Sending a case with $12 worth of food costs
in the neighbourhood of $40. Recently, we have been able to
purchase food supplies and clothing in India, South Africa
and Palestine for the refugees in Russia, and it is hoped that
these supplies will make up about 20,000 packages to be sent
between October 15th and December 31st, 1943. The purchase of
Regraded Unclassified
285
COPY
Enclosure 3 to despatch No.
12660 of December 8, 1943,
from the Embassy at London,
England.
MEMORANDUM BY MR. SCHWARTZ
HELP TO GROUPS OF REFUGEES IN EUROPE
The Joint Distribution Committee sends food parcels from
Lisbon to the Jews in the Theresienstadt Concentration Camp
and also to the Jews in Poland, particularly those in the
ghettos. In the case of Theresienstadt the Czech Government
sends food parcels to their nationals who are interned in that
Camp while the J.D.C. sends its parcels largely to non-Czechs
who are in the Camp. The Czech Government are sending to-day
about 6,000 parcels a month to 3,000 of its nationals while
the J.D.C. sends about 5,000 packages to 2,500 non-Czech nation-
als. The packages contain sardines, dried fruits and almonds,
and each package weighs about 500 grammes so that each in-
ternee on our list receives 1 kg. of food per month. These
packages are sent under License from the United States Treas-
ury which has authorised the expenditure of 12,000 dollars
& month for this purpose. Only food indigenous to Portugal
may be sent under the Licence. The United States Legation at
Lisbon must be satisfied that the parcels are reaching their
proper destination.
In the case of Poland the evidence of receipt has become
scarcer and scarcer and because of this the sending of parcels
has, for the time, been stopped. Later, communication has been
taken up with the Jewish Community in Cracow which has acknow-
ledged receipt of parcels addressed to them. They undertook
further distribution of these parcels. It is hoped that through
the Jewish Committee in Cracow, it will now be possible to dis-
tribute more food parcels to Jews in Poland. Under our Licence,
we are authorised to spend $12,000 & month for packages to
Poland.
At the present time, the J.D.C. is sending about 1000 par-
cels a month from Teheran to Polish refugees in Russia. Customs'
duties and postage account for two thirds of the total cost
of the packages. Sending & case with $12 worth of food costs
in the neighbourhood of $40. Recently, we have been able to
purchase food supplies and clothing in India, South Africa
and Palestine for the refugees in Russia, and it is hoped that
these supplies will make up about 20,000 packages to be sent
between October 15th and December 31st, 1943. The purchase of
Regraded Unclassified
286
- 2 -
these supplies and the dispatch to Russia will cost about
140,000 Pound Sterling of which the J.D.C. is furnishing $90,000
and relatives in Palestine are putting up the balance. It is
hoped that in time we shall be able to develop facilities for
the dispatch of about 10,000 parcels per month to Polish
refugees in Russia.
The Lend-Lease Organisation has stock of goods in Iran
intended originally for the Poles. Owing to strained official
relations, the U.S.S.R. does not permit the importation of these
goods through Polish channels but would grant import permission
if the J.D.C. took the goods over. Negotiations concerning this
are now in progress. Also the Polish Red Cross owns some stocks
in Iran which they are not now able to send to Russia. We are
negotiating with the Poles for the purchase of these supplies
to be sent on a non-sectarian basis to Polish refugees in Russia.
The Turkish Government has agreed to permit the export of
250 tons of food stuffs from Turkey to the 75,000 Jews actually
in Transnistria. The goods will be sent out in individual
packages, and the distribution will be under the auspices of
the International Red Cross whose Ankara delegate is co-operating
very closely. The J.D.C. has applied to the State Department for
a Licence to remit funds for the purchase of these supplies. The
State Department has indicated that this may be referred to the
Inter-Governmental Committee for decision and has also indicated
that, in future, all projects for the sending of food packages
to any part of occupied Europe may have to be passed upon by
the Inter-Governmental Committee.
It is estimated that there are now some 30,000 Jews in Dutch
concentration camps, particularly, at Westerbork. Our information
is to the effect that the food situation is particularly bad, and
we have applied for a Licence to send food packages from Lisbon.
The matter is now pending.
It is not possible to export food or clothing from Switzerland,
but some medical supplies as well as an occasional shipment of
powdered milk in bulk can be sent. The organizations in Switzerland,
with the co-operation of the International Red Cross, occasionally
send such bulk supplies to institutions in Poland as well 8.8 to
Theresienstadt.
Regraded Unclassified
287
- 3 -
Summing it up, it can be stated that the chief diffi-
culties in sending help to refugee groups in occupied Europe
are:-
10 to get the parcels through to them.
2.) to obtain the necessary Licence.
3.) to find the necessary food supplies.
In general, the International Red Cross has signified
its readiness to help when a definite proposal is placed
before them, and the necessary funds are provided for a
particular project.
Regraded Unclassified
288
FEB 2 1944
Dear Mr. Millihopfs
I have received your letter of January x,
1944, enclosing a letter addressed to you by Dr. Fred
I d
I have referred Br. Wedseman's letter to
m. John W. reble, Accistant to the Secretary, and
arrangements have been ande to have Dr. Wedsomen
- to Washington - February 4, 1944, to dissuse
his propesals in detail.
Sincerely yours,
(Signed) H._S.Klotz
1 É
Labor Standards Association,
⑉ Insure Securities Building,
Philadelphia % Pt.
FHedel,hd 2/2/44
Regraded Unclassified
Jacob Billikopf, Director
LABOR STANDARDS ASSOCIATION
or
805 BANKERS SECURITIES BLDG.
LOM
PHILADELPHIA 7. PA.
a
January 26, 1944
L IN
OTHER
& co,
Mrs. Klotz:
I am sending a self-explanatory letter from
red S. Weissman, Executive Secretary of the Selfhelp of
es From Central Europe, Inc., in New York City. I dis-
to trouble you, and if Dr. Weissman's request adds in
way to the heavy burdens, then I will ask you not to
oncern yourself with it. Should you, however, write to
Weissman, may I have a copy of your letter.
Kindest regards, as ever,
Cordially yours,
g.B.
JACOB BILLIKOPF
Regraded Unclassified
STATION
P.O.
CANAL
6-soco
Selfhelp
OF EMIGRES FROM CENTRAL EUROPE, Inc.
139 CENTRE STREET
January 25, 1944
Mr. Jacob Billikopf
vaident:
805 Banker's Security Building
PM TILLE
Philadelphia, Pa.
'ine-Presidents'
FAIDR. POLLOGE
DUE STAUDINGES
Dear dr. Billikopf:
Tom STOLPS
(massurer:
I enjoyed it so much to have seen you again at the Annual
MERMANN LEUSBOORP
meeting of the National Refugee Service, end I am sincerely sorry
loand of Directors:
that I could talk to you only in such a rush. But your very
DIA D. BALL
friendly words and your mentioning of Mrs. Klotz's name have en-
ANDOB SUIMITAN
MARTHA
couraged me to give some thought to B problem which has been
JACOB BILLICOPF
bothering 8 great many of our friends for quite a while. I am
FREOR. W. BORCHARDT
ELSA BRAENDITROEM-ULICH
still more encouraged to ask you for your never failing essistance
PRIEDRICH s. BRODNITZ
since I have read about the appointment of the new Board for the
PREDERICK H. BAUNNER
ALBERT EINSTEIN
rescue of refugees. There are still many thousand refugees in
KATHERINE A. ENGEL
HILOR PELIX
France, as for EB we know, many of them in hiding, others still
HERMAN L FILENE
in camps, still others liberated and living in small villages,
JAMES FRANCK
WALTER PRIEDLANDER
etc. I have seen quite a number of recent Red Cross messagés in
MARIE GINESERO
which these unfortunate people ask their relatives and friends
KURT GOLDSTEIN
EXHST BUNDELPINGER
here for help. I am aware that, according to the "Treding with
EDWARD HEIMANN
the Enery Act", money must not be transmitted to enemy occupied
HORACE M. KALLEN
GABRIELLE KOPPELL
countries. But I also know that some relief agencies, as e.g.
HEIMBICH
the American Joint Distribution Committee, have been given per-
CARL LANDAUER
EONA Laws
mission by the Treasury to guarantee to local conmittees in enemy
PHILIPP LORWEHFELD
Leo
occupied countries, 19ke Shanghai, that money borrowed by local
ALEX LONGH
groups will be refunded by the Joint after the wer.
ADOLF
HARDLD
AUGUSTA
Many emigres have friends and relatives in Switzerland who
OTTO
vould be able and willing to advence relief payments to needy
EMILY
CECILIA
To frince, If only the knew that whit they might advence
JOHN K.
rutrinded +3,00 :ft.r the NOT. If the Treasury
MM
NATHA
permitted QE to collect, from people living In this country, e
OTTO
Bream
trust fund, blocked here for the duration, earmarked for the
Emerg
Fole purpose of reimbursing after the war people or groups in,
INCRIP
Switzerland that have advenced such relief payments to their dear
FREDE
LILLY
01:45 in Frince, I feel June that 19 could st.ve "eny lives. As
FRIED
for know, there is 20 len in Evitzerland egainst using Swiee
HAND
funds for such relief purposes in Frunce, end v.e have P very re-
liable corresponding consitere in which could give
FREE
[rof giverates for the pro;e" Handling of this problem.
year pr-teñil 11 you kindly looked tato this think metter there and
Needleed Klotz to :- 20" PAY should that I should be
tu
an
Appointment
in
Teshington
with
to
the
project
-2-
STATION
-2-
TELEPHONE
CANAL 6-500
Selfhelp
OF EMIGRES FROM CENTRAL EUROPE, Inc.
139 CENTRE STREET
Mr. Jacob Billikopf
Philadelphia, Pa.
Januery 25, 1944
SUBM
Such a trustfund would be useful not only for refug es in
France but also with regard to people who escaped to Switzer-
land from France and, recently, from Italy. You may know that
more than 10,000 such refugees have crossed the Swiss border and
1.
of
Directorm-
have to rely on relief, regardless of whether they are detained
in camps or released and allowed to live privately In the country.
MARTHA
The Treasury permits transfers to be made to these people, but
JACOB
Page: W. SOSCHARDT
only if effected from blocked dollar accounts, through 6 domestic
ELMA
bank. (We ourselves hold such E license and have e special
PRESENT a. ESCONITE
transfer service, in cooperation with the Quekers). However, the
PREDERFOR H. BRUNNER
ALBERT CHETON
whole plan does not work out properly, because the Swiss Govern-
N ENGEL
ment does not allow payments to be made over there from the block^
HALDE PEUX
HORMAN be PLEASE
doller accounts. If money which is now being sent from blocked
JAMES FAMILY
dollar accounts to Switzerland could, instead, be put in E
WALTER DEANDER
MARK
trust fund in this country, there might be e chance that
KUBT GOL
people in Switzerlend who are interested in alleviating the
ENIST FINGER
EDWARD -
suffering of refugees In Switzerland were ready to advence those
HORAGE a. KALLEN
relief payments for the duration. You may he sure that the
GARRICLLE KOMPELL
KONNICH REGRATION
realization of such F) plun could save a are t derl of money.
CARL LANDLING
It would cut short B. lot of red tspe, end, last not least, would
EDNA Livel
PHILIPP
give encouragement to many victier of Nazi appression here nnd
Lae Loss
ALEX
abroad.
ADOLE
I leave it to your judguent, der MT. Pillings, whether
MARCH
Austi
you think this plan phantastic, or whether you think It worth-
Orra
while to submit the idec to ars. Klots. You helped je once
EMILY
3 /etro Ego, to start the to I'm r.co, hd
Joan
I T14 wire proud the take Ider, nice, the e,
Litu
MATHER
sounded so phantmacke, has seanshile
OTTO
transmitting funds for relief purposes to marry countries. T D*
AVOER
Douty
sure you will find the proper WAS also this +1 C.
For your conventence, enclose E copies as this Intion.
LILLT
PRIED
Tanki
in
new
i:ce
105
HAME
for this dec, no
FRES
fsn/rl
De
292
February 2, 1944
12:15 p.m.
JEWISH EVACUATION
Present: Mr. Pehle
Mrs. Klotz
H.M.JR: In seeing Miss Tully, the thing that seemed
to make the biggest hit was the publicity. So I moved
that up forward. There is 8 chance that I may get in
this afternoon. So if I call, I am on the way to the
White House. Don't have the thing in ten different
rooms. In other words, have it so it can be ready.
MR. PEHLE: How much time will I get?
H.M.JR: You will get about a one-minute notice.
That is what she gives me. It won't be until after lunch.
She said, "If I call you, can you come on a minute's
notice?"
I said, "Yes."
MR. PEHLE: All right.
MRS. KLOTZ: If worse comes to worse, take what you
have.
H.M.JR: Where is the other thing, the agenda? I
have that as number one of the first meeting. She was
impressed with the fact that I said that both Stimson
and Hull had left it to me.
MR. PEHLE: That isn't what the agenda says. Are
you talking about the agenda or the memorandum on the
first meeting?
H.M.JR: The agenda; that is what I said.
Regraded Unclassified
293
- 2 -
MRS. KLOTZ: I don't know why I am amused.
H.M.JR: Pehle after a while--if he gets half of
some sentence, he can interpret it.
MR. PEHLE: That is what we do around here. Sometimes
it leads us into difficulties, because sometimes we
misinterpret.
H.M.JR: The steno has the other half!
id
Regraded Unclassified
294
Luncheon meeting in the Secretary's Office
February 2, 1944
Present: Secretary Morgenthau
Mr. Crowley
Mr. Cox
Mr. Currie
Mr. Bell
Mr. White
R. Currie submitted a draft of a statement to the President to be
signed by Morgenthau, Hull and Crowley giving the results of the month's
conferences with the British pursuant to the President's letter of
January 5. Cox, White and Currie had previously gone over the draft,
copy of which is appended. The Secretary, after examining the items in
which there was definitive agreement with the Dritish to eliminate from
lend-lease credit, expressed the disappointment that the total was not
greater but said that he knew how difficult a job it was to get agreement
on even the smaller list.
Currie stressed the desirability of not making the report final but
indicating that there were other items to be taken up later with the
British. Currie referred particularly to the desirability of including
iron and steel manufactures among the items to be discussed. If they
could get part of that item eliminated it would remove the source of
considerable friction arising out of the fact that England exported some
semi-manufactured iron and steel items. Currie thought we might also
add cotton to the program. It was agreed that it would be desirable to
include those items as subjects for later exploration. Cox expressed
doubt whether the State Department would approve of including those two
items because of their magnitude and the complexity of considerations
involved.
Some changes were recommended in the draft statement and Mr. Crowley
suggested that if Currie and White would fix it up right after the meeting,
it could be signed that afternoon and sent to the President. It was so
agreed.
White inquired what was holding up the lend-leasing of silver to
India. Cox explained that the State Department and FEA were in consul-
tation as to whether it should be lend-leased to UK alone or to UK and
India. The Secretary said that it was his understanding that it was to
go to India but White explained that the State Department had informed
the Treasury that India was too great a risk because of the possibility
of political turn after the war and urged that the silver be lend-leased
to the UK. White had taken it up with Bell, who was Acting Secretary,
and it was agreed that we should inform FEA that in view of the State
Department position we withdraw our request that the lend-leasing operation
Regraded Unclassified
295
Division of Monetary
Research
- 2 -
be made to India rather than to UK notwithstanding the discussion which
had taken place before the Silver Committee when the matter had been
raised before that committee.
White stated that the shipment of the silver to India was becoming
more urgent because we were planning not to grant their request for an'
additional 65 million ounces which we had just received and that they
would run short of silver in a few months unless this 100 million ounces
were made available. Mr. Crowley instructed Cox to push the matter.
It was also agreed to send a letter to Secretary Hull requesting
a meeting on the subject of lend-lease aid to the French. The draft
letter was submitted, accepted and later the Secretary signed it.
H. D. White
HOW
Regraded Unclassified
Treasury Department
296
Division of Monetary Research
Date February 2
1944
To:
Secretary's Files
This matter was discussed at lunch attended
by Secretary Morgenthau, Crowley, Cox, Currie, Bell
and White.
The Secretary signed the letter, copy of
which is appended. The letter was sent by messenger
to Secretary Hull that same afternoon.
A memorandum giving some further details on
the matters raised in the letter to Secretary Hull
is appended.
H. D. White
MR. WHITE
Branch 2058 - Room 214
Regraded Unclassified
297
FOREIGN ECONOMIC ADMINISTRATION
OFFICE OF THE ADMINISTRATOR
WASHINGTON 25, D. C.
My dear Secretary Morgenthau:
Attached hereto is the original and one
copy of a proposed letter to Secretary Hull.
You will remember that we discussed the
idea of sending such a letter with you.
This proposed letter has been cleared with
Harry White and with Dean Acheson's office. It is
satisfactory to both.
I have signed this proposed letter and, if
it is agreeable to you, I would appreciate it if
you would also sign it and have it transmitted to
Secretary Hull.
Sincerely yours,
Administrator. Leo T. Crowley, Ceed
The Honorable
The Secretary of the Treasury.
Attachment
Regraded Unclassified
298
FOREIGN ECONOMIC ADMINISTRATION
OFFICE OF THE ADMINISTRATOR
WASHINGTON 25, D. C.
FFR 2 1944
My dear Secretary Hulls
There are two questions of major importance
on the relationship between the United States and
the French Committee of National Liberation which
we think ought to be discussed by yourself and
ourselves.
First, there is the question of possible
use of the gold and dollar assets of Metropolitan
France for the furnishing of supplies to Metropolitan
France upon its liberation.
Second, there is the question of how payment
is to be made by the French Committee of National
Liberation for civilian supplies furnished by us to
French North and West Africa under the Modus Vivendi
Agreement of September 25, 1943, in light of the
possible scarcity of gold and dollar assets avail-
able to the Committee.
We suggest that a meeting be called at an
early date to discuss these problems, those in attend-
ance to include us three together with appropriate
members of our staffs.
Sincerely yours,
Henry Morgenthau, Jr.
Secretary of the Treasury
Leo 1. Growley
Administrator
The Honerable
Foreign Economic Administration
The Secretary of State
Attachment
Regraded Unclassified
299
COPY
SECRET
February 3, 1944
MEMORANDUM FOR THE PRESIDENT
In accordance with the suggestion in your memorandum of January 5,
1944, the Foreign Economic Administration has now discussed with tne
British representatives the larger part of the list of controversial
items heretofore supplied to the British on lend-lease credit. The
following comments and the attached list indicate the present status of
the various items:
The British have signified acceptance of the elimination from lend-
lease aid of the items shown in Group I, which would total approximately
145 million in 1944.
Discussions with the British are under way or pending with respect
to the items shown in Group II, These items would total approximately
143 million in 1944. The Foreign Economic Administration wishes,
subject to further checking, to eliminate these items from lend-lease
Lid.
The total of the items in Groups I and II which will or may be
removed from lend-lease aid would be approximately 2888 million.
Convincing reasons against the elimination of the items shown in
Group III were developed by further investigation. The Foreign Monomic
Administration, therefore, proposes to continue them on lend-lease aid
for the present. The dollar volume of lend-lease aid for such items in
1944 will be approximately $245 million.
The Foreign Economic Administration is also considering the elimina-
tion from lend-lease aid of raw materials and products, of types used by
the United Kingdom in commercial exports, which have given rise to fric-
tion; offshore purchases other than those listed; supplies for South
Africa; and certain other controversial items.
It is believed that the actual and contemplated revisions will
greatly strengthen the lend-lease program.
The Secretary of State
The Secretary of the Treasury
The Administrator of the Foreign
Economic Administration
Regraded Unclassified
300
Group I. Items Whose Elimination Has Been Accepted by the British
1. Offshore Purchases
Caribbean sugar and molasses
$55,000,000.
Iceland fish
25,000,000.
2. Material Procured in the British Empire
Alcohol for the U.K. so far as available in Canada
22,000,000.
3. Petroleum Products for Empire Air Training Program
Shipping and refining costs of U.S. petroleum in Canada
15,000,000.
4. Storage, Inland Transportation Charges and Ocean Freight on
Non-Lend-Lease Cargoes
Originating in the U.S.
23,000,000.
Originating in Canada (except on food, strategic raw
materials and combat items)
2,000,000.
Originating in South America (except on lead, graphite,
fertilizers and mica)
Negligible
5. Savory Food Products
3,000,000.
Total for Group I
$145,000,000.
Group II. Items on Which Discussion with the British is Under
Way or Pending
1. Costs in the U.S. of Petroleum for Empire Air Training Program
in Canada
9,000,000.
2. Offshore Purchases of Petroleum
25,000,000.
3. Ocean Freights on Non-Lend-Lease Cargoes
Caribbean sugar
25,000,000
Canadian loadings
35,000,000.
Refrigerator ships from the Argentine
5,000,000.
4. Charter Hire on Dutch Vessels under Charter to the British
3,500,000.
5. Civilian Goods for British Areas in the Middle East
5,000,000.
6. Civilian Goods with Civilian End Uses (e.g., textiles, light
bulbs, furniture, hardware)
25,000,000.
7. Jusiness Machines and Office Equipment for Non-Military Purposes 8,000,000.
8. Building Materials and Construction Equipment for Non-Military
Negligible
Purposes
9. Savory Food Products (other than those in Group I)
2,000,000.
$142,500,000.
Total for Group II
Regraded Unclassified
301
- 2 -
Group III. Items Which the FEA Proposes to Keep Under Lend-Lease
Aid for the Present
1. Tobacco for the Armed Forces
$ 40,000,000.
2. Special Pulp and Paper Products (procurable only in U.S.)
15,000,000.
3. Agricultural Machinery
15,000,000.
4. War Shipping Administration Ships Made Available to Sea
Transport Service
25,000,000.
5. War Shipping Administration Tankers for Petroleum and
Petroleum Products
150,000,000.
Total for Group III
$245,000,000.
Regraded Unclassified
302
February 2, 1944
2:44 p.m.
HMJr:
Hello.
Randolph
Paul:
Hello. This is Randolph.
HMJr:
Yeah.
P:
I want to send in to you a statement on the
Revenue Bill. I was afraid you were going to be
going over to the White House and I want to be sure
to have it in your hands in case you want to use it.
HMJr:
Well, I was to see him this morning and he postponed
it until tomorrow morning. If you'll give it to --
where are you now?
P:
I'm in my office.
HMJr:
Well, give it -- send it in to FitzGerald and he'll
give it to me.
P:
All right. I -- We -- we'll go on working on it
but we've very much improved the draft yesterday.
HMJr:
Good.
P:
And the only one of the bunch I've heard from on the
yesterday's one is Fred Smith, who thinks it's
fine with a couple of suggestions.
HMJr:
Good.
P:
And they all have this one but I'm sure Fred will
think this is all right because he thought the one
inferior to it was all right.
HMJr:
Righto.
P:
Okay, well, I'll send it right in, then, because
I want to have you have it. You'll be here for a
while, won't you. I'll be wanting to see you before
HMJr:
Yeah. I want to -- I'll see you before I go.
P:
Okay.
Regraded Unclassified
303
/
Statement to accompany signature of the Revenue
Bill of 1943
2-2-4
The Revenue Bill of 1943 is before me for signature.
I cannot reconcile this feeble effort to meet the costs
of the war with the gigantic military offensives that lie
directly ahead. I find in it no real support for our
program to stabilize the cost of living. I find in it no
assurance to our fighting men and women that we are ready
to bear our share of the war costs now instead of postponing
the day of settlement until they come home.
This bill is a vote of no confidence in the American
people. I am confident that they are able and willing to
pay the taxes which this bill refuses to impose. I am sure
that they recognize taxes as an instrument for speeding
their fighting sons and daughters back from the battlefronts.
A realistic wartime tax measure would have provided
more than $10 billion in added revenue. This bill offers
less than one-fifth of that amount. A realistic tax bill
would have plugged up existing tax loopholes. This bill
opens up new loopholes. A realistic bill would have simpli-
fied our tax laws. This bill retains their complications.
Regraded Unclassified
304
- 2 -
Incredible as it seems in time of war, this bill
makes unpardonable tax concessions to self-seeking
special-interest groups. It cancels $1.1 billion of
social security tax increases already scheduled by law.
It was initially agreed in the Congress that the tax
bill was to be limited to the raising of revenue and the
simplification of taxes. But selfish pleas for tax con-
cessions prevailed, and the agreement was ignored. As the
revenue program was presented to the Congressional committees,
it was dedicated squarely and solely to the welfare of the
American citizen. As it comes to my desk in the form of
H. R. 3687, it bristles with special privilege. The general
welfare of the American citizen has been neglected in a
scramble of the special interests to obtain tax favors.
The mining interests are granted an enlargement of the
objectionable percentage depletion allowances. The lumber
interests are granted special low rates of taxation on
wartime profits from timber cutting. Speculators in
securities of many bankrupt corporations will be unjustly
enriched by provisions granting inflated tax deductions and
credits to these corporations on reorganization. Operators
Regraded Unclassified
305
- 3 -
of natural gas pipelines are granted wholly unwarranted
relief from excess-profits taxes. Commercial air lines
are granted an unjustifiable extension of the tax subsidy
on their air mail contracts.
I cannot but deplore this alarming trend toward special-
interest legislation. Sponsored by clever lobbyists and
disguised in technical language, such legislation has been
growing in volume from year to year. As a result, certain
irresponsible groups are escaping their fair share of war-
time taxation. The cumulative effect of these indefensible
tax subsidies is to corrode our tax system. They impair
its efficacy as an instrument to raise revenue and fairly
distribute our tax load. It is high time that the creation
of new loopholes be stopped and that the loopholes already
opened be closed.
Who will bear the tax burdens from which profiteering
corporations are being freed? Insofar as the loss is
not made up by other war taxes, an unfair share of those
burdens will be placed on the shoulders of our returning
service men and women. Insofar as this bill does increase
taxes, it places an unfair share on the lower income groups
Regraded Unclassified
306
- 4 -
because of its heavy reliance on excises.
The Revenue Bill of 1943 fails the American taxpayer
in other respects. He has been promised that tax laws and
returns will be drastically simplified. This bill does not
make good that promise. It ignores the most obvious step
toward simplifying taxes. That step would be to eliminate
the clumsy Victory tax. But for fear of dropping from the
tax rolls those taxpayers who are at the bottom of the
income scale, the bill retains the Victory tax. I cannot
reconcile this unwillingness to forego a modest sum from
our poorest taxpayers with the ready response to pressures
of special-interest groups.
Other opportunities for simplification were also
ignored. For example, withholding at graduated rates,
which would relieve millions of the task of filing declara-
tions of estimated income, was not adopted. The American
taxpayer has every right to expect action on these and
other measures to simplify his taxes.
In view of our pressing revenue needs, it is unthinkable
that tax increases already provided by law should be set
aside. Yet, the bill before me does precisely this by
Regraded Unclassified
307
- 5 -
freezing social security payroll rates. It wipes out
$1.1 billion of payroll tax revenues.
It also weakens the social security system. With
employment and wages at record levels, claims against social
security trust funds are building up at record rates. Unless
payroll taxes are increased, employee claims will far out-
strip payroll tax contributions.
The renegotiation provisions of this bill as finally
adopted by the Congress represent a great improvement over
earlier provisions. However, one serious defect remains.
The purpose of renegotiation is to prevent excessive war
profits. This bill fixes a date for the expiration of
renegotiation. The provision for a termination date offers
an incentive to delay vital war production and sanctions
war profiteering after that date. Profiteering late in the
war is no less offensive than profiteering earlier. Renegotiation
is necessary throughout the war. No expiration date prior
to the end of the war is defensible.
In view of the glaring defects of this bill, it is &
close question whether its enactment is preferable to
retention of the present law. However, the need for wartime
Regraded Unclassified
308
- 6 -
tax revenues is 80 urgent that I am unwilling to reject
& measure which adds to our tax revenues even the small
amount contributed by this bill. Accordingly, I have signed
the Revenue Act of 1943. But I strongly urge the Congress
to face its responsibility. That responsibility is to raise
adequate revenue, to eliminate special privileges, and to
provide real simplicity for millions of small income tax-
payers. In the interests of strengthening the home front
and of speeding the day of Victory, I urge the earliest
possible action.
Regraded Unclassified
309
February 2, 1944
3:15 p.m.
WAR BOND PROGRAM
Present: Mr. Bell
Mr. Coyne
Miss Elliott
Mr. Englesman
Mr. Houghteling
Mr. Hall
Mr. Lee
Mr. Lane
Mr. Gamble
Mr. Shaeffer
Mr. Smith
Mr. Haas
Mr. Lindow
Mr. Tickton
Mrs. Klotz
H.M.JR: Mr. Gamble, this is a family meeting. I
watch this thing through Haas' office. It looks like
it is a little disconcerting.
Maybe everything is all right, but I don't know.
Last week this young fellow (Tickton) said we ought to hit
at the beginning of the first of February a minimum of
eighty million 8. day for B Bonds. We are not. With
all this business, if we don't do it now - I mean, when
he said it he didn't know about the Jap atrocities.
He called up five larger Federal Reserves and
their decks are clear, so there is no backlog. That
isn't the trouble.
My spies tell me that you have been busy since I
called you, checking. I have spies. (Laughter) I
would be glad to know what you have heard.
MR. GAMBLE: All right, sir.
Regraded Unclassified
310
- 2 -
H.M.JR: Everything goes along. You don't see me.
You can sleep until eight-thirty as far 8.8 I am concerned,
if the children don't waken you up. But rather let's
be sure than sorry.
So I will be glad to hear what you have been doing
since I talked to you.
MR. GAMBLE: I think it might be well for me, be-
fore I have these people tell you what we have checked
up on, Mr. Secretary - - we keep some figures of our own.
he use a little different arithmetic.
MR. BELL: They include the backlog, don't they?
MR. GAMBLE: Up until yesterday we had a billion
eighty-five million dollars of E Bonds. From that day,
from a comparable day in the Third War Loan Drive,
following that day, we had twenty-one days where we
averaged eighty-four million dollars a day, following
that date in the Third War Loan Drive.
Now, that didn't come in as eighty-four million
dollars a day, but it came in in this way: The first
day we had ninety-eight million, then dropped to seventy-
eight million. Some days that dropped to seventy-six
million, but we averaged, in twenty-one days, eighty-
four million dollars from that date forward at that
period of the drive.
We need to average eighty-four million dollars a
day in the next twenty-four days in order to get a
billion nine hundred and twenty million dollars, which
would put us over our three.
From everything we know and have learned in the
field - certainly we are better organized - - there is
evidence of it, which you will hear in detail on all
fronts. There is no reason to believe that we don't
have as many sales coming in for the Fourth @ar Loan
from this day onward as we had in the Third War Loan.
Regraded Unclassified
311
- 3 -
My own opinion is, and this is only an opinion,
that we have more than that, but I think we are not
being at all unreasonable when we assume that the flow
of sales and reporting will be equal to the Third War
Loan from here in. If it is, we will make our three
billion dollars.
I would like to repeat that. We had twenty-one
days - in the last twenty-one days of the reporting
period of the Third War Loan Drive we averaged eighty-
four million & day. We have twenty-four more reporting
days left in the Fourth War Loan Drive and we need to
average only eighty million a day.
H.M.JR: Do you mind, as long as we have our own
statistics--
MR. HAAS: They are all prepared.
MR. TICKTON: That is right. The point that Ted
started to make, which I made to you last weak, is in
order to average eighty million dollars a day, starting
about this area, you are going to have to run about
five, six, or seven days at about a hundred million a
day. February 23 to 29 will be & period after most
of the reporting has been accomplished, so that from
here on you have got to average about a hundred million
dollars a day, or even a little better.
Now, the problem that bothers me at the moment is
that in order to do a hundred million a day, that is
rather exceptional. We only had about five or six
times in the Third War Loan when we had that peak.
Skipping the first time when we hit the peak because we
overlapped between mail and wire reports, on the other
days that the Feds were able to report 8 hundred million
dollars, they were somewhat backed up in their handling
of their E Bond stubs. They only hit a hundred million
when they worked at a very rapid rate and sometimes required
some overtime to process that amount.
Regraded Unclassified
312
- 4 -
Now, in talking to the six of them between last
night and this morning, none of them were backedup, and
that is a trifle disconcerting, because in this week,
and beginning of next week, you have got to get your
hundred million dollars or you won't get them except
on the last day or two after the drive. So, as this
Beam Chart shows, we are on the beam at the moment.
Any little thing, one day off, for example, might throw
us at somewhat of a loss.
We had hoped that we would have the E Bond figure
for today to see how it tied in, but because--
H.M.JR: Well, the point I want to make to you
ladies and gentlemen is that we have never made our
E Bond quota, and this time we have just got to.
MR. GAMBLE: We are going to make it, Mr. Secretary.
H.M.JR: We didn't look for this horrible Japanese
atrocity, and the thing has come our way. With all
that extra stuff, plus the landing south of Rome, plus
the landing in the Marshall Islands - all of this excit-
ing war news - if we can't do it this time, we never
can do it.
MR. GAMBLE: You won't feel any effect.
H.M.JR: May I interrupt you a moment? Before
using the three billion dollar figure in Cincinnati, I
called up Theodore Roosevelt Gamble and got his O.K.
MR. GAMBLE: That is correct. You won't feel any
business from the Japanese atrocities until this time
next week. Wouldn't be any of it reported that will
show. Is that correct?
MR. TICKTON: That is right.
MR. GAMBLE: Now, they did have, yesterday afternoon
in the New York Federal Reserve Bank, three hundred and
Regraded Unclassified
313
- 5 -
twenty-seven million, seventy-six two and a quarters;
two hundred forty-four million two and a halfs; seven-
teen million C's; sixteen million E's; seven million F's,
and thirty million G's. They had that much money on
hand in the Federal Reserve Bank which they had not
reported.
That doesn't mean that they were backed up that much
because they will carry it over until today.
MR. TICKTON: They ordinarily report a figure some-
where between twelve and two o'clock.
MR. GAMBLE: What I mean is that nothing has been
hanging around for two or three days, but they didn't
go on to say, "We had this much money come in today
which we haven't touched yet."
Burgess told me over the phone an hour ago, that
if he had all of his money credited that was in the
Federal Reserve Bank in New York now, he would have
fifty percent of his quota. He is content that it is
not credited, because it is a good way for it to come
through. A sixteen million dollar E-day is good there.
H.M.JR: The only thing I am worrying about is,
I want my three billion E, see?
MR. GAMBLE: I understand that, sir. Now, let me
tell you another reason why your E Bond reporting is
likely to be slower in this drive. In the Third War
Loan Drive, we depended pretty much on the banks for
the issuance of securities. We didn't have plant quotas
uniformly, not as many of them - not as much activity
outside of the banks as we have now where issuing agents
are handling the sales. We will distribute twenty per-
cent of our securities in this drive through theater
box offices - twenty percent of the securities. We
will distribute probably better than fifty percent of
them through issuing agents through corporations, be-
cause of plant quotas. We will feel none of that, Mr.
Secretary, until the 15th of February. It will be the
middle of February before you feel the plant quotas.
Regraded Unclassified
314
- 6 -
H.M.JR: But you see, this fellow, Tickton, right
or wrong, told me the thing would be settled on February
1 and 2.
MR. GAMBLE: Well, I think for those of us who have
followed this very closely - and I know you can't trade
on my optimism - but in my own mind, Mr. Secretary, it
is settled. There is no question in my mind but what
in twenty-four days we will roll up our three billion
dollars, because it is inevitable. If it ever can be
done in this country, with the kind of an organization
we have, it will be done this time. It just couldn't
be any other way. Our efforts in the Third War Loan
Drive would account for a billion seven after this
period of time; then certainly we have been set up this
time to account for a billion nine. I think that is
conservative.
To give it to you more specifically, I am going
to let Ralph tell you, first of all, about his plants
that he talked to. He made checks on eleven States.
MR. HAAS: Could I ask Ted a question?
MR. GAMBLE: Yes.
MR. HAAS: Ted, if you do a job on the same level
as the September, it would seem to me - we had a dis-
cussion of these figures in my office this morning - it
would seem to me you should substantially exceed the
three billion.
MR. GAMBLE: I think you will, George.
MR. HAAS: You have more money there; you have a
better organization; and you have limited buying.
MR. GAMBLE: That is right; I think we will. But
I haven't been called on to make any more than that
statement.
MR. HAAS: I am not forecasting. I am a little bit
concerned.
Regraded Unclassified
315
- 7 -
MR. GAMBLE: I think we will.
H.M.JR: George, I will take three billion and
like it.
MR. HAAS: So will I, Mr. Secretary.
H.M.JR: That is why I didn't want to sign that
statement last night, patting the big corporations on
the back.
MR. GAMBLE: What George has said is right; we
should exceed the three billion with the situation as
it is today.
MR. HAAS: But you should be getting ahead of that
beam quite a bit.
MR. GAMBLE: That is right, but you must remember,
George, that we have no reason to believe that the banks
can handle more than a hundred million a day. There is
no evidence of that. Now, that is not altogether the
banks' fault. It is just the way the thing works out
mechanically, and the way the reports come in from
issuing agents, the hundred million is about the figure.
H.M.JR: But we have allowed from about the 18th
to the 30th.
MR. GAMBLE: The 15th to the 29th, to have that
extra time. You won't get it in any greater chunks,
Mr. Secretary.
H.M.JR: What have the boys and ladies been doing?
MR. ENGLESMAN: I have to report that I called up
and got in touch with the men in charge of pay rolls. I
called up eleven key spots, and I tried to select and
get a cross-section of the country. For instance, I called
Rochester, New York, where there are a lot of key industries -
Eastman Kodak, Bausch and Lomb, Rochester Products, and
so forth.
Regraded Unclassified
316
- 8 -
Forty-four firms there have assumed a quota of
seven and a half million dollars, they employ seventy
thousand people. As of yesterday they had achieved
seventy percent of that quota. Some of the firms are
over already, and in their opinion there is no question
about going over.
But again, and I will repeat this several times
because in every place they brought this to my attention,
in the last War Loan Drive we tried to get all the busi-
ness that came in on pay roll, in during the month of
September; this time they are allowing the employees
to deduct for extra bonds in the months of January and
February, and you won't get your final reporting until
the 15th for those extra deductions, because they will
only purchase the bonds when they have accumulated the
money.
In Indiana, to give you an example, the International
Harvester has gone over its quota of a hundred dollar
bond per person. The Evansville Shipyards put on a very
unusual drive. They didn't even have a meeting, but
they went over their quota in six days, a million five
hundred thousand. The Delco people in Indiana reported
to me there is no question, fifty-one million two hundred
thousand quota, and they think that they won't be finished
reporting until the 25th of February.
In Connecticut they said the snow ball is just
beginning to roll. For instance, one of the big con-
cerns - as you know, Mr. Secretary, United Aircraft is
just in the middle of its drive. It won't be able to
report its accumulations until later in the month. In
the meantime, Electric Boat is over & hundred percent
per person, with twelve thousand employees - the New
England Bell, which has twelve thousand employees, and
the Scoville Company, and numerous others there.
In Michigan I got a varied report - a good one,
but they said it requires lots of pounding. For instance,
the Ford Plant, which has over one hundred and twenty-
five thousand employees there, has a quota of sixteen
Regraded Unclassified
317
- 9 -
million dollars. Now, most of that is being bought
in extra bond purchases over pay roll savings, and
they tell me that they will start reporting on that,
really, on the 15th of the month. The Excello Tool
Company, a smaller company, ten thousand employees, have
gone over. General Motors, which last time didn't give
us anything out of pay rolls, extra bonds, didn't put
on B. drive, have consistently put on drives in all their
plants with some three hundred and some-odd thousand
people, but around Detroit and that area, about two
hundred thousand people. They report way over on their
drive. One of their departments hit two hundred percent
of their quota. They said in some of the smaller
instances, where they are laying off people, they are
not going to make it. But the last thing they told me
there was that the plants will take care of themselves.
In Pennsylvania we have another report which is
similar. To give you an example of the work still to
be done on that, in Philadelphia they are planning
fifteen hundred rallies in plants. They have only had
seven hundred of those, and won't complete those until
the end of the week. We won't be able to get reports
there until later in the month.
In Oregon - Ted didn't know I called Oregon, but
I thought I would find out what is going on out there.
H.M.JR: Just & coincidence.
MR. ENGLESMAN: Yes. Swan Island, two and a half
million dollars and they have made their quota; Oregon
Ship isn't doing as well.
Florida, Maine, Tennessee, some of the smaller
States, have all put on drives which they didn't in the
last War Loan. They report very favorably.
I got 8. wire just before I left, from Texas, where
the big shipyards down there are now deducting on the
basis of seven hundred and twenty thousand dollars a
month, in January sold four hundred thousand dollars'
Regraded Unclassified
318
- 10 -
worth of extra bonds for cash to their employees.
They all report the same thing. I asked them when
I spoke to them - I said, "Now let me have it honestly,
straight from the shoulder. I don't want just a pretty
story." And without exception they are confident that
they will make their plant quotas, which represent about
sixty percent in these States of the E Bond quotas of
these States, just in the plants. But without exception,
also, they warned us that they will not have the reports
until later on this month. Some of them will, but very
few.
Now, that is the story I got from those eleven
spots and those few extra spots that I called.
MR GAMBLE: Of our sales, Mr. Secretary, the pay
roll should account for about & billion and a half
dollars of the E Bond sales.
H.M.JR: I am not going to comment on it, because
until the money is in Danny Bell's hands it is meaning-
less to me.
MR. ENGLESMAN: As you said, until those amounts
come in that day, you don't count them. But I think we
all agree that probably, except for the E Bond sales
reported in January, that is 8. pretty accurate picture
of the thing - or wouldn't you?
MR. TICKTON: I don't know. It remains to be seen
when it comes in. It sounds good from a great many
places. Still and all, the figures that you quoted are
relatively small figures. The only point I am making is
you still have 8. hundred million dollars a day to do
for the next six or seven days, even if some of it comes
in late.
The thing I worry about is a situation that happened
in Michigan the last time. It won't happen again in
Regraded Unclassified
319
- 11 -
Michigan, because they got stuck with enough E Bond
sales to prevent them from making their quota. They had
the stubs in some bank and never got to the Fed. Those
things can happen very easily with respect to our
Evansville Shipyard. I talked to Mr. Pulliam yesterday.
They don't expect to issue the bonds until February 27.
That is not time enough to assure their getting those
bonds into the Fed by February 29. They might do it,
but it is very dangerous to - say you issue your bonds
on the night of February 27 and get them over to the
Fed on the 28th to get them counted--
MR. ENGLESMAN: They have sent out instructions to
every plant.
MR. GAMBLE: Ralph's point was, Sid, assuming that
everything he said is true, you wouldn't have that
information now. AS a matter of fact, no matter how
you--
H.M. JR: If there are many Evansville Shipyards
only going to report then, you ought to do something
about that.
Let's move along.
MR. HALL: I have got a couple of specific figures
from the field. All of the banks of Cook, Lake, and
DuPage counties, Illinois, now report daily. They have
accurate reports on their sales. These are paid for
at the banks, and not necessarily cleared at the Fed.
In the September drive, during the period of time
equivalent to January 18 to February 1, the E Bond
sales by those banks were fourteen and a half million
dollars. From January 18 to February 1, in the same
banks, they were twenty-two and three-quarters million,
an increase of fifty percent. The number of sales,
which included the sales of all kinds of bonds - not
restricted to E's - increased in the same scoring from
one hundred and fifty-two thousand to two hundred and
forty-nine thousand, a sixty percent increase in numeri-
cal orders.
Regraded Unclassified
320
- 12 -
The Chase National Bank, which is the largest in
the country, has sold to date in this drive, E Bonds
to thirty thousand people in the amount of three million
eight hundred and twenty-five thousand, or an average of
one hundred and twenty-seven dollars.
In the Third War Loan, during a comparable period,
their sales numerically were larger, thirty-two thousand,
but dollarwise were less. In the Third War Loan they
were selling at the rate of one hundred and six dollars
per sale, and this time one hundred and twenty-seven
dollars per sale.
H.M.JR: That disregards the fact that we counted
the first eighteen days of January, doesn't it? You
are giving yourself the credit of that.
MR. HALL: No, I think in both cases they are
taking credit for everything from the first of the month.
MR. GAMBLE: September and January.
MR. HALL: I think SO.
The insurance employees in New York - the insurance
offices - claim to have thirty thousand people partici-
pating in a drive to sell bonds to individuals. They
have made eighty-eight thousand sales, an average of
one hundred and eighty-five dollars 8. sale, which is a
much better rate than they did last time. It is half
as much as they did last time in the whole drive period.
The OCD house-to-house canvass in Chicago, the
average sale is running one hundred and ninety dollars.
Those are about all the straws in the wind I have
picked up.
MR. GAMBLE: You might add the National City Bank.
They have sold ninety thousand bonds up through Monday,
as against a total of one hundred and eighty thousand
in all of the Third War Loan Drive, and are very pleased
with it.
Regraded Unclassified
321
- 13 -
MR. HALL: Orders?
MR. GAMBLE: Ninety thousand orders in that bank.
H.M.JR: Miss Elliott?
MISS ELLIOTT: I checked on North Carolina, Indiana,
Michigan, and got excellent reports from all of them.
North Carolina - of course, these women didn't
deal in the figures because they don't handle that -
but the number of people working is increasing. She
is having less difficulty in keeping the whole machinery
going all over the State.
One very interesting thing she said was that in
the rural counties of North Carolina the E Bond sales
are increasing, and are much higher than they were in
the last drive.
Now, in Missouri, Mrs. Devin told me that they
have sold seventy percent of their total quota in the
rural districts, and most of that is in E Bonds from
the rural districts there, which, I think, is a good
sign.
But all these women felt encouraged; they didn't
feel worried about it, and were particularly enthu-
siastic because they said the momentum of the drive was
increasing. I thought that was important in terms,
particularly, of the E Bonds.
In Indiana Miss Butler reported that of course,
the women there are depending more on booths for their
individual sales.
H.M.JR: Booze?
MISS ELLIOTT: Booths. They might want some booze
sometime. She said that the number of workers in the
booths was increasing and that the number of sales was
increasing in the E Bonds there.
Regraded Unclassified
322
- 14 -
MR. GAMBLE: Mr. Lee, who is in charge of the
motion picture special events.
MR. LEE: In lieu of any system of daily reporting,
which we don't have for obvious reasons, they competitively
pad their reports too much about the sales you people are
making. Indications are, in a long list of excerpts
from general correspondence and messages, that we are
much more highly organized, Mr. Secretary, than we have
ever been before. We are traveling at a faster momentum.
It is highly accelerated. There are some indications that
you are not interested in reporting on what has already
been done--you have that up here--but some indications
of what might be expected from us in the remaining weeks.
Let's take Northern California, where one division of the
Fox West Coast theaters, on which records are a little
more accessible to us through the chairmanship of our drive.
There are forty-eight thousand seats in Northern California,
reaching down to and including Fresno. They have already
sold forty-three percent of their quota of 8 bond a seat.
And that is already slightly under four times the total
number of E bonds that were sold throughout the whole
Third War Loan.
H.M.JR: You mean, those theaters--it comes from
the same theaters?
MR. LEE: That is right, sir.
Now then, bond premiers is 8 thing that is directly
connected.
H.M.JR: What denomination is & bond a seat?
MR. LEE: Any denomination, but all E bonds. Of
course, bond premiers is a thing directly connected with
direct sales from our theaters as issuing agents. In the
entire Third War Loan there were approximately thirteen
hundred of those bond premiers throughout the nation. In
this war loan twenty-eight hundred and eighty are already
scheduled, and less than one-fifth of those have been held,
which indicates that the majority of those are yet to come.
Regraded Unclassified
323
- 15 -
One observation is pertinent to that trend of
thought. My people indicate that most of our efforts up
to now have been largely to try to help implement standard
and regular programs that are arranged by your War Finance
Chairman and that our special promotions and bond premiers
and free movie days and these kinds of things are largely
yet to come and that the next two weeks probably should
be more productive weeks from our program than the two
that have just ensued.
MR. GAMBLE: There are eleven and- a half million
seats, Mr. Secretary, in the country.
MR. LEE: For example, in Detroit we have one hundred
and nineteen more issuing agents than we had in the Third
War Loan.
MR. GAMBLE: The Detroit area?
MR. LEE: Yes.
MR. SAMBLE: Mr. Houghteling.
MR. HOUGHTELING: As far as labor is concerned, I
can't quote in percentages, because we don t deal in
quotas and figures, but up to the 18th, the labor situation
was very jittery on account of the railroad situation.
It was suddenly cleared up, and everybody, instead of
feeling thoroughly confused, got into the stride of things.
My reports now are better than they have ever been.
I have been in touch within the last couple of days
with my people in the field, and they say that the labor
people are doing a better job than they have ever done
before, that there is less discontent and questioning,
that they are going ahead, that the labor people in the
plants all think the quotas can easily be reached.
In the railroad field, we won't begin to feel this
retroactive pay until pretty well along in the month. A
lot of the railroads have gotten out special authorization
cards to be signed by their employees and allot fifty,
Regraded Unclassified
324
- 16 -
sixty, seventy, or eighty percent of their retroactive
pay so they can collect it direct from the check. Along
toward the end of the month, I think, we are going to
get & lot of that retroactive pay. There is altogether
two hundred and five million dollars of that retroactive
pay that is to be paid out, and railroad people seem to
think we will get a very large part of it. Some of it
won't come in in February at all, but I think we will
have 8 distinct spurt at the end of the drive from that
very tangible amount of money which is being paid out.
MR. GAMBLE: Checking with Lawrence's people was
just a double check.
H.M.JR: But no places where labor says they are
being held back?
MR. HOUGHTELING: I haven't found any.
H.M.JR: Not on a committee?
MR. HOUGHTELING: I haven't found any gripe at all.
H.M.JR: Give it to me in writing, will you?
MR. HOUGHTELING: I told then the first thing a
labor union does is establish & grievance committee.
Apparently they aren't working this time at all.
H.M.JR: Did you have any response to our talk from
Bridgeport?
MR. HOUGHTELING: Yes, they are very keen about it.
It went over fine.
H.M.JR: Did you get anything in writing? They liked
it?
MR. HOUGHTELING. Yes, I was talking to Van Vaerenewyck
in Boston today. He said he had a lot of favorable reports
on it.
Regraded Unclassified
325
- 17 -
H.M.JR: It has never been done before, has it?
MR. HOUGHTELING: No.
H.M.JR: I don't know whether Ted Gamble has an
ace or joker in his hand. Now, come clean, what is it?
MR. GAMBLE: Eighty-two million, Mr. Secretary.
(Laughter) Two million to spare.
H.M.JR: It is all right. He says he wants a hundred
million.
MR. GAMBLE: He will get a lot of hundred million
dollars.
H.M.JR: That is a red ace, the ace of hearts.
MR. GAMBLE: I thought Tom Lane of Advertising might
tell you briefly how we are scheduling our advertising
this time so you will know what is coming in the remaining
couple of weeks on advertising.
MR. LANE: More than ever before, Mr. Secretary, a
larger proportion of our promotion is breaking the latter
part of the drive than was true in September or previous
war loans. For example, during previous drives the news-
papers would be full of ads the first few days, and in
many cases they would have little or nothing throughout
the rest of the campaign. We deliberately did a lot of
things so we would have a more sustained schedule. For
example, we scheduled peak advertising days that were sent
out to all the retailers and newspaper ad managers, Marine
Day, Schools at War--and Treasury Hunt Day is a week from
Thursday. That will spread out the advertising.
The Bataan business has given us a lift of advertising
that is still breaking. We wired out an ad, you know. I
just talked with the checking bureau this morning, and
they said that that ad is starting to come in in consider-
able numbers.
As far as our radio picture goes, here are some of
the things that are yet to come up: The Kate Smith
Regraded Unclassified
326
- 18 -
Columbia broadcast was just yesterday, so, of course, you
don't have any effect on actual sales yet from that.
The NBC all-day bond sale will not be until February 8.
In addition, NBC has just set up a half-hour program
that will be broadcast every night from February 1
through February 8.
Here are some of the special talks that are still
to come up: On February 3 Lieutenant General Vandergrift
over CBS; on February 4, Mrs. Morgenthau on CBS; on
February 5, Mr. Bell and the Boy Scouts on NBC; on
February 5, also, Joseph Clark Grew on the Blue Network;
on February 9, Mrs. Roosevelt on CBS; on February 14,
Irving Johnson over the Mutual Broadcasting System.
Also, on the allocation program, many of the best
shows, top ranking shows of the air--they are giving us
8 complete program--are still to come in the next two
weeks. Here are just some of the programs: Frank Morgan,
Fanny Brice, Jack Benny, the Quiz Kids, the Hour of Charm,
Cavalcade of America.
H.M.JR: O.K. All right. You still haven't had
General Marshall.
MR. GAMBLE: We had General Marshall, yes, sir.
We had an excellent statement from him day before yester-
day.
MR. LANE: Mr. Secretary, again this time we deliberately
withheld some of our material. We withheld some of it that
just went out the end of last week and the first part of
this week to give it a lift--another clip sheet, a special
feature page, and several of our mat releases.
The only think I can add, Mr. Secretary, is that
this time we are getting a true response from national
advertisers who are preparing and placing their own
copy. Most of that material, because of closing dates,
and so forth, will appear still to hit in the next couple
of weeks.
Regraded Unclassified
327
- 19 -
MR. GAMBLE: Bob Coyne.
MR. COYNE: I have only one or two items, Ted. The
State of Delaware is very interested in the E bond
picture, because all of the E bonds--at least fifty
percent--that are sold in that State move through one
bank. The first ten days of this drive versus the first
ten days of the September drive showed a fifty percent
increase in favor of the January war drive, fifty in
amounts, two hundred and ninety-one thousand against
two hundred and twenty-thousand, and what is more important,
thirty-three hundred pieces against twenty-three hundred
pieces. Now, that is a sample of fifty percent of the
E bonds that moved out during that period, based on our
previous experience.
In California, which I was interested in because
it was one of our worst areas last time, they seemed
to think they are eight percent better off today than
they were in the comperable day during the last drive.
The figures have been showing up much slower there, and
they haven't shown the surge that Sid is so eagerly
waiting for. But the Federal Reserve Bank indicated
out there that they expected that surge today and that
our day-by-day sales have been about fifty percent better
in January as against September, without any surge having
shown up.
H.M.JR: How much better do they have to be for
the country to make three billion dollars?
MR. COYNE: About one-fifth.
MR. LINDOW: It is really not that high, Mr. Secretary,
because you have more days this time. You have two full
months, whereas last time we had a lot shorter time, about
six weeks. In the first seventeen days of this month
as against the first eight days in September, we took in
about two hundred eighty million dollars more in E bonds.
So we have that much gain just on the extra time before
the drive formally opened.
Regraded nclassified
328
- 20 -
Now, there will be a little extra gain at the end,
because the accounting period is longer.
MR. LEE: Supplementing tomorrow's account of publicity,
all of the newsreel issues for the rest of the campaign
are committed to cover the war bond situation.
H.M.JR: Is Coyne through?
MR. COYNE: I have just one observation to make on
Federal Reserve Bank reporting. If you will look at
this chart, the St. Paul Bank--the four States surrounding
it--they all report to St. Paul. Iowa, Nebraska, and
Idaho are not making 8 good showing, and yet, they will
turn in a good quota. It appears to be quite obvious
that the difference in reporting practice in those States
account for the difference in performance there.
H.M.JR: I have two suggestions to make that aren't
going to make or break the thing. One is for the motion
picture industry. I used it Sunday night. That is in
regard to Lidice, Kharkov, this and that. It isn't just
the Japanese. I wonder if the motion picture people
would have time to throw together an atrocity film of
the various atrocities which have existed and get it out.
There is this film the Russians have just brought over
from Ukraine, taking various cuts out of various things.
You remember--I got it from "Remember the Maine." If
you remember Pearl Harbor, remember this Russian thing.
It isn't just the Japanese thing, because of the letdown.
Do you see what I mean?
MR. LEE: Yes, sir. I will examine the possibilities
of doing it quickly enough to be of use to us within an
hour after I get back.
H.M.JR: Throwing the thing together, going back to
the old slogan, "Remember the Maine."
MR. GAMBLE: Like your annual roundup, Paul?
MR. LEE: Yes. It would be a question of whipping
the distribution problem quick enough to do us some good.
Regraded Unclassified
329
- 21 -
H.M.JR: Fred is working on one for me to do on
the air, but I don't know when I'll be able to do it.
Do you get the idea? There is no use unless it could
come in quick enough.
MR. LEE: Yes, sir. That would have to be almost
necessarily applied to the newsreel setup, because it
is the only way the distribution thing could be fast
enough.
H.M.JR: Do you like the idea?
MR. LEE: Yes, sir. I see nothing wrong with it.
H.M.JR: Oh, better than that, "There is nothing
wrong with it."
MR. LEE: Excuse me, sir.
H.M.JR: That is all right.
MR. LEE: I was examining from a technical stand-
point.
H.M.JR: Another idea which I gave to Smith--and I
don't know where it is--I very, very much would like to
have, if they would do it, soldiers on leave from the
front to put on a show on the air for us from overseas
at one of these rest camps.
Did you have any luck, Fred?
MR. SMITH: Well, I talked it over with General
Byron up there. It will either be tomorrow or the
following day.
H.M.JR: Have you sold it to these people?
MR. SMITH: No, I haven't mentioned it to these
people.
H.M.JR: I mean, do you have any enthusiasm here?
MR. SMITH: It hasn't gone beyond Dudley and Charley
yet.
Regraded Unclassified
330
- 22 -
H.M.JR: Oh, I was thinking of this room here. The
point is, could you get these boys who have been at the
front--you can't get them from the Pacific--who are in
the rest camps, plus trained nurses who have been there,
to talk about some of their experiences, and then incidental-
ly say how many bonds they are buying and shame these
people at home, without doing it too obviously?
MR. GAMBLE: Could you get Kirby to do it on the
Army Hour Sunday?
MR. SMITH: He will probably make a whole broadcast,
that is all.
H.M.JR: These people who have been up there and
have seen the thing, saw people die all around them--
they are buying the bonds; most likely eighty or ninety
percent of their pay, whatever it is, is going into bonds.
If we can do it, I think it would be awfully good. And
it is novel. I think they would enjoy it. I mean, it
would be kind of fun for them.
MR. LEE: On bond tours, the reception they have
gotten is tremendous.
H.M.JR: But supposing you got the fellows from a
rest camp in Italy who have been up around Cassino, Hill
660, or whatever the numbers are, I mean, like this young
lieutenant who personally took two tanks and got the
Congressional Medal. I mean, we could have that fellow
talk to these people.
MR. GAMBLE: Or this boy who shot down six planes
in fifteen minutes yesterday.
MR. LEE: That has tremendous influence. I see
nothing wrong with it! (Laughter)
H.M.JR: I have one other very little thing. I
think the country is now ready also for Noel Coward's
"Don't Let's Be Nice to the Germans."
Regraded Unclassified
331
- 23 -
MR. GAMBLE:
Do you know it has been released?
They are criticized for it, but it has been released.
H.M.JR: That is all right; don't let's be nice
to the Germans. Have we been criticized?
MR. GAMBLE: A fellow by the name of Gilbert Seldes.
H.M.JR: Who is he?
MR. GAMBLE: A producer in New York who sent you a
telegram criticizing us for it.
H.M.JR: Well, put it in the papers. Wait a minute.
Gilbert Seldes gets out a weekly paper.
MR. SMITH: I think that is his brother- the "In Fact."
H.M.JR: Well, that is all right. A lot of people
aren't ready yet. They still want to be nice to the
Germans and the Japs.
MR. GAMBLE: In fairness to him, he thought they
did the opposite.
H.M.JR: Let's have a little excitement about it.
MR. GAMBLE: We did & swell job on the transcription.
H.M.JR: Can I ever hear it?
MR. GAMBLE: Yes, sir. I am sure there is one here
for you.
H.M.JR: I would love to hear it.
MR. COYNE: On the Treasury Star Parade.
MR. GAMBLE: Will you see, Tom, and if there isn't
one here in the studio, send one over right away. We
have five of our trailers which we are going down to
look at if anyone would like to join us.
Regraded Unclassified
332
- 24 -
H.M.JR: May I say this in conclusion? It sounds
all right, but the old man still hasn't the feeling in
his elbow that it is in the bank. You (Gamble) know me;
and until I get that feeling--
MR. GAMBLE: We are all going to be uncomfortable.
I know. (Laughter)
H.M.JR: Nobody here said anything that makes me
convinced that the three billion dollars is in the bag.
MR. GAMBLE: I appreciate that, and it is very
difficult.
H.M.JR: I will keep you people on the anxious seat
until I feel that way, but I still don't feel it is in
the bank.
MR. GAMBLE: I don't think, Mr. Secretary, with an
operation that represents the maximum, as I think this
does in physical ability, to do this job, we can get
off the hot seat until we get closer to the end of the
drive.
H.M.JR: You better make sure about the Ford Company
who bought twenty-five million dollars on block and
doesn't turn it in, and all the rest of those things.
These manufacturers had better make sure they are going
to get their things in, in time.
As I say, these are encouraging, but they are not,
I am sorry to say, convincing.
MR. GAMBLE: They are not cash register sales.
H.M.JR: I am not questioning anybody's sincerity.
I am still from Missouri, and I am going to keep being
that way--
MR. GAMBLE:
...until you are in better shape. I
appreciate that.
Regraded Unclassified
333
- 25 -
H.M.JR: And I wish you would get the word out.
MR. GAMBLE: We will tonight, Mr. Secretary. We
will caution everyone again tonight.
H.M.JR: I am not worried a bout the fourteen billion;
but I am worried about the three.
Mr. Bell, do you want to say a word?
MR. BELL: I don't think SO. I haven't been so
worried about the three billion. At least, I haven't
had any reason to worry about it. It seems to me we
have a better organization. We have a longer time; we
have the benefit of the repeat orders coming in; we
have only five hundred million dollars more to make than
we had in September with all of the advantages that go
with a better organization, a longer period, and people
buying their limit in the month of January. I don t see
why we can't make it.
H.M.JR: I don't, either, but it is still to be made.
MR. GAMELE: Well, it is a big job, that extra five
hundred million.
H.M.JR: I am delighted with the enthusiasm and the
kind of a sales organization you have. On the other
hand, it is my job to make sure--
MR. GAMBLE:
that we aren't letting down anywhere.
MR. LEE: You just don't blindly trust my judgment.
H.M.JR: No, sir. And being Secretary of the
Treasury isn't a job you can relax in. I have said
consistently, and people have criticized me for it,
that it is like an airplane engine that goes at full
speed. Once it stops you collapse. I can only fail
once, and I am not going to fail. In this business
you can only have one flop and you are off. I don't
know how many chances you have in your industry, but
I only give myself one.
Regraded Unclassified
334
- 26 -
But keep it up, and I will be watching you.
MR. GAMBLE: Fine.
H.M.JR: That is all.
:
Regraded Unclassified
335
February 2, 1944
4:25 p.m.
HMJr:
Hello. Hello.
A. Willis
Robertson:
Yes, Mr. Secretary.
HMJr:
How are you?
R:
Fine, thank you,
HMJr:
I got a message you wanted to call me and talk to
me.
R:
Yeah, about making Series E, F and G acceptable
for taxes after the war.
HMJr:
Well, I -- they are now -- the law 1s so written
that we can accept them any time for taxes.
R:
No, I think there is some question about that.
They can be cashed in -- E Bonds can be cashed.
HMJr:
Well
R:
But there is another series that are acceptable
for taxes but that's all. These three are not
acceptable for taxes.
HMJr:
Well, I consulted Mr. Bell before calling you
R:
Yeah.
HMJr:
And he said, "E, F and G
R:
That's right.
HMJr:
"
could be used for taxes," but if you have some
doubt I'll check it again.
R:
No, not if you are satisfied. I just -- a man that
is supposed to be well posted in such matters and
made some study of it and he gave me the list of
those that could, and said that he wanted to write
an editorial advocating a change in law
HMJr:
No.
R:
to make those acceptable for taxes.
Regraded Unclassified
336
- 2 -
HMJr:
Well, I'll ask Mr. Bell to check it again to make
100% sure and if we're wrong we'll let you know.
R:
All right. All right.
HMJr:
But he
R:
Well, if it's already the law, we have no objection
to it staying the law.
HMJr:
But if we're wrong in that, we'll get in touch with
you.
R:
Thank you 80 much, sir.
HMJr:
Thank you.
Regraded Unclassified
the Secretary
337
2/2/44
FOURTH WAR LOAN
Beginning January 18, 1944
(In millions of dollars)
Cumulative
: Through
: Through
: Thre gh
: Through
:
Through
:
Through
:
:
Jan. 28
:
Jan. 29
:
Jan. 31
:
Feb. 1
:
:
:
:
:
:
:
:
:
:
:
:
:
:
Series E Bonds
:
874
:
944
:
1,007
:
1,085
:
:
:
:
:
:
:
:
Series F Bonds
:
53
:
60
:
66
:
75 :
:
:
:
:
:
:
:
:
:
Series G Bonds
:
266
:
296
:
319
:
355
:
:
:
:
:
:
:
:
:
:
2-1/2% Treasury Bonds
:
250
:
312
:
400 :
584
:
:
:
:
:
:
:
:
:
:
2-1/li% Treasury Bonds
:
378
:
519
:
639
:
1,089
:
:
:
:
:
:
:
:
:
:
7/8% Certificates
:
790
:
968
:
1,230
:
1,763
:
:
:
:
:
:
:
:
:
:
Series C Notes
:
644
:
834
:
967 :
1,209 :
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
TOTAL
:
3,255
:
3,933
:
4,628
:
6,160 :
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
:
Regraded Unclassified
338
FEB 2 1944
Dear Eddie Cantor:
I was delighted to receive your wire and
to know that you continue to support our im-
portant home front effort with all your time,
talent end energy.
I an sure you realize as we do that col-
lateral benefits of such an activity as you
engaged yourself in in San Francisco are many.
Certainly you can be proud of your generous
and patriotic efforts on behalf of our common
cause.
Sincerely,
(Wigned) E. Morgenthou, Jr.
Mr. Eddie Cantor,
R. K. 0. Radio Pictures,
Hollywood, California.
TRG:DFT
R
Regraded Unclassified
gausle
339
cramp comper or
WU15 NL
544 JAN 31 MII 8 40
SANFRANCISCO CALIF JAN 30 1944
HENRY MORGANTHAU JR
WASHDC
HAPPY TO INFORM YOU SOLD THIRTY SEVEN MILLION SIX HUNDRED
THIRTY THOUSAND SEVENTY FIVE DOLLARS WORTH OF BONDS FOURTH
WAR LOAN RESULT OF TWENTY FOUR HOURS OF CONTINUOUS BROADCAST
OVER STATION KPO IN SANFRANCISCO REGARDS
EDDIE CANTOR.
BM 74% 31 MY 8
838 AM JAN 31 1944.
J&G
Regraded Unclassified
340
February 2, 1944
Dear Kate Smith:
I want you to know how much we at the Treasury
appreciate your splendid performance yesterday on
behalf of the Fourth War Loan Drive.
The amount of money raised for the sale of War
Bonds is but a part of the over-all attainment of
such a demonstration of time, energy and talent.
Collateral benefits are many. For one thing such
an activity sids immeasurably in creating an aware-
ness of the big task we are called upon to face in
raising such large sums of money to finance the war.
Your day yesterday was, as the one in the Third
War Loan, an outstanding success from our point of
view, and I think you should be very proud of this
very tangible evidence of your wholesome and patri-
otic desire to serve.
Sincerely,
(Signed) II. Morgenthau, Ji
Miss Kate Smith,
0/0 Ted Collins,
1819 Broadway,
New York, New York.
TRG:dft
Regraded Unclassified
341
FEB 2 1944
Dear Colonel Halseys
Thank you for your note of January 31, with
which you were good enough to send a copy of your
memorandum to Hembers of the Senate and their
staffs, and to officers and employees of the Senate
regarding the Fourth War Loan Drive.
As I have stated previously, I greatly appre-
clate the special interest which you have taken in
the sale of Var Bends at the Capitol.
With my best wishes, I as
Sincerely yours,
(Higned) H. Morgenthau, 3,
Secretary of the Treasury
Golenel Edvin A. Halsey
Secretary of the Senate
Washington, D. c.
2
EFBartelt:hbw 2/1/44
Regraded Unclassified
342
FEB 2 1944
Dear Mr. Doxey
Colonel Halsey has sent to no a copy of your
joint memorandum to Members of the Senate and their
staffs, Officers of the Senate and employees, dated
January 29, 1944, urging them to buy War Bonds during
the Fourth Var Loan Drive.
I appreciate very such your interest and help
in the sale of War Bends at the Capitol.
Sincerely yours,
(Signed) H. Morgenthau, Jr.
Secretary of the Treasury
Nonorable Wall Doxey
Sergeant at Arms of the Senate
Vashington, D. 0.
2/1/44
Regraded Unclassified
EDWIN A. HALSEY
SECRETARY
United States Senate
Dear Mr. Secretary:
You see we are still trying
to keep things moving at the
Capitol.
E. n. H.
you++.
Regraded Unclassified
the
the
So
January 29, 1944
OF THE SELATE AND THEIR STAFFS,
TICERS OF THE SENATE AND EMPLOYEES:
On January 31 there will be stationed in the Office of the Financial
of the Senate, representatives of the Treasury Department from whom
Sonds may be purchased. This is done upon the request of the Secre-
of the Treasury who, in a letter to the Sedretery of the Senate, re-
us of the War Loan Drive. The letter from the Secretary of the Treas-
for your information, is quoted in full: ---
January 8, 1944
Colonel Edwin A. Halsey
Secretary of the Senate
Washington, D. C.
Dear Colonel Halsey:
In the Fourth Yor Loan Drive, commencing January 18,
the Treasury will undertake to raise $14 billions for con-
tinued prosecution of the war. of this amount we hope to
get about 35% billions from individuals, which is $500 mil-
llons more than the goal set for individuals in the Third
Wer Loan Drive.
on December 7, 1941, a date which will live in infamy,
as the President has said, this country was mavagoly attacked
by the Japanese at Pearl Harhor. in ell knew that the war
was not of our making. We are determined to fight this wor
to a finish -- unconditional surrender. And it must be paid
for.
My purpose in writing you now 1a to enlist your aid dur-
ing the Fourth Var Loan, with the end in view that appropriate
facilities may be rovided for the sele of war bonds to the
Members of the Senate, its officers and employees.
This Department will be glad to assist in any way it can
to make these bonds conveniently available to the Henbers of
the Senate end their employees.
Sincerely yours,
(Signed) Henry Morgenthau, Jr.
Secretary of the Treasury
The Fourth nationwide War Bond Drive was inaugurated on January 18th,
end will continue through Fabruary. You are respectfully urged to buy your
bonds now so that the Senote may make e showing in the sale of bonds dom-
mensurate with its staff,
LET US ALL no OUR SHARE!
Edwin A. Halsey
Secretary, U, S. Senate
Well Doxey
Sergeant at Arms of the Senate
Regraded Unclassified
345
February 2, 1944
Dear Mr. Johnson:
Thank you for sending me Harris's story
about the sale of Bonds to sailors. The record
that both the soldiers and sailors have made is
striking.
At one time, I wanted to release to various
localities the names of local soldiers who were
both buying Bonds and facing enemy fire; but it
turned out that this was an impractical idea from
the standpoint of getting the names from the War
Department. I still believe, however, we ought
to find some way of letting the people back here
know how well their soldiers are doing.
If we could find some way to use soldiers
participation in bond-buying as a yardstick for
civilians participation, I think we would have a
very effective device.
Perhaps somebody in your shop could think
up a way to do it.
Sincerely,
(Signed) H. Morgenthau, 44
Mr. Earl J. Johnson
General News Manager
United Press Association
New York, New York
FS:mlf
Regraded Unclassified
TOR'S NOTE:
Vica
ED PRESS WAR CORRESPONDENT RICHARD C. HARRIS SPENT WEEKS WITH
DENED SAILORS WHOSE CONTRIBUTION TO THE WAR EFFORT IS TO ENDURE
DSHIPS AND DANGERS OF THE NORTH ATLANTIC IN SEARCH OF NAZI
INES. IN THE FOLLOWING DISPATCH, HE SETS FORTH A LITTLE KNOWN
OF THEIR FIGHT FOR VICTORY WHICH IS OF PARTICULAR INTEREST TO
INS DURING THE FOURTH WAR LOAN DRIVE.
-0-
BY RICHARD C. HARRIS
UNITED PRESS MAR CORRESPONDENT
OARD A U.S. ESCORT AIRCRAFT CARRIER, NORTH ATLANTIC- (UP)
HI
NG SUBMARINES IS TURB LENT, WINTRY SE^S IS NOT ENOUGH FOR THE
F
ING ME: 0: THIS CVE "BASY FLAT-TOP," -- 90 PER CENT ARE BUYING WAR
R
TO THE HILT.
E MEN MICO RISK THEIR LIVES DAILY AND ENSURE EVERY CONCEIVABLE
D OMFORT TO WIX THE BATTLE OF THE ATLANTIC LOOK U.ON BOND PURCHASES
NO AS AN ACT OF PATRIOTISM BUT AS A GOOD INVESTMENT -- NOTHING YORE.
LIEUT. L. S. POER, GUNNERY OFFICER, ATLANTA, CA., ORGANIZED A BON'.
SELLING CAMPAIGN A 'ONG THE SHIP'S 16 DIVISIONS, TELLING HIS SALESMEN AT
THE OUTSET:
PATRIOTISM IS NOT A SELLINC POINT TO A MAS MMO HAS OFFERED HIS
LIFE TO HIS COUNTRY. SOUND INVESTMENT, GOOD INTEREST AND FUTURE
SECURITY ARE THE BEST SALES ARGUMENTS.
MORERS418A
UP25
ADD BONDS ABOARD CARRIER (HARRIS) XXX ARGUMENTS."
IEUT. POER HAD A SALESTAN FOR APPROXIMATELY EVERY 25 MEN IN THE 16
DIVISIONS WHICH COMPRISE THE SHIP'S EIGHT DEPARTMENTS: AIR, GUNNERY,
INEERING, MEDICAL, CONSTRUCTION AND REPAIR, COMMUNICATIONS,
NA ICATION, AND SUPPLY. ME OFFERED CARTONS OF CIGARETS AS PRIZES.
SOME OFFICERS MADE ALLOTMENTS TO PURCHASE AS MUCH AS $150 WORTH OF
BO S A MONTH, BUT SOME OF THE YOUNG APPRENTICE SEAMER, SEAMEN 2ND
CL $ AND SEAMEN 1ST CLASS, EARNING, $50, $54 AND $66 PER MONTH,
RE ECTIVELY, AND PAYING AN AVERAGE OF $6 PER MONTH FOR INSURANCE,
KA to SKIMP TO BUY TWEIRS. ALONGSIDE THE NAMES OF SOME PROSPECTS,
SA SMEN RECORD, "CAN'T AFFORD IT; WIFE AND BABY.' ONE INDIVIDUALIST
TO A SALESMAN HE WAS "SATISFIED TO LET HIS CIVILIAN BACKERS BUY.
HE S THE ONLY ONE TO USE HIS SERVICE AS AN EXCUSE FOR NOT BUYING.
IUR SALESHEN TIED FOR FIRST PLACE, EACH SELLING HIS DIVISION 100
PI
ENT. THEY WERE CUNNERS "ATE 1ST CL. NELS V. JOHNSON, OF
ST BURG, COL.; PHARMACISTS MATE 1ST CL. VIRGIL D. PARSLEY, OF
B)
DNT, TEX.; YEOWAN 2ND CL. WALTER SCOTT COFFMAN, OF COLUMBUS, O.,
At
LECTRICIANS MATE 2ND CL. RADFORD J. NORVELL, OF ST. LOUIS, MO.
COND PLACE WAS TAKEN BY YEOMAN 3RD CL. RICHARD E. DEBARGE, OF
SI
FIELD, MASS., AND WATERTENDER 2ND CL. EDWARD L. NAGLE, OF
J
SHORE, PA.
TOTAL VALUE OF THE ALLOTMENTS PER MONTH WAS $4, 777.75. LIEUT.
OPES TO MAKE IT 1 O PER CENT VITH ANOTHER CAMPAIGN IN
RING.
RS421A
Regraded Unclassified
347
Mr. Pehle asks for a 60-day deferment
for Rodney Ward Stewart, one of his assistants.
Stewart has just completed a six months' defer-
ment and a renewal was not requested inasmuch
as he expects to receive a commission in the
Navy. However, Pehle has him temporarily
working on the War Refugee Relief work and
it is because of that that he desires to keep
him for the next two months.
Tim
Regraded Unclassified
348
February 2, 1944
The Committee on Deferments gives approval to the attached request
for the deferment of Mr. Rodney Ward Stewart, Assistant Director, Foreign
Funds Control. Mr. Stewart's position is on the key list approved by
the Mar Manpower Commission. He has been under deferment since July 7.
1943. He is 31 years of age, is married and has 1 child 1 year and 3
months of age.
Mr. Stewart is in charge of the Administrative Services Division
and the Statistics and Reporting Division and is responsible for all
matters relative to the administrative management and statistical and
reporting work of Foreign Funds Control. This includes all phases of
personnel management including the training of replacements for -
ployees called to military service; all budgetary and fiscal administra-
tion; all administrative planning and procedural work; the maintenance
of all administrative and property accounts; the provision of machine
tabulation and statistical services; and the supervisionbof all other
office management services. Mr. Stewart directs and coordinates the
work of more than 400 employees. It is practically impossible at this
time to secure a replacement for Mr. Stewart and if someone were found
approximately a year's intensive training would be necessary.
(SGD) Herbert Chairman E. Gaston
(Sgd) W. N. Thompson
Approved: (For 60-day deferment)
(Sgd) T.F. Wilson
(Sgd) H. MORGENTHAU JR
Secretary of the Treasury
LB
Regraded Unclassified
349
2/2/44
My dear Mr. President:
Permate to the provisions of the let approved March s, 1938,
as amended (15 U. B. C. 713a-1), an Ast to mintain unimpaired the capi-
tal of the Commodity Credit Corporation at $100,000,000, and for other
purposes, - appraisal has been mão of all assets and liabilities of
the said Corporation as of March 31, 1943. As 8 result of such appeais-
al and on the basis of the cost, including not more then one year of
earrying charges, of such assets to the Corporation, or the average mr-
ket prices of such assets for the traive menths period ended March 31,
1943. whichever was less, it has been determined that the liabilities
of the Corporation, including capital stock of $100,000,000, assed the
assets by an amount of $39,436,004.93. A report of the Committee 4
pointed by - to appraise, - 4 behalf, the assets and liabilities of
the Corporation is attached for your information.
The Ast sited above provides that in the event the not worth
of the Corporation, as shown by the appraisal by the Secretary of the
Treasury, is less than $100,000,000, the Secretary of the Treasury, on
behalf of the United States, shall restore the amount of rush impair-
ment by a contribution to the Corporation in the amount of such impair-
next. to smble the Secretary to make each payment there is authorised
to be appropriated annually, commensing with the fissal year 1938, an
amount equal to any capital impairment found to exist by virtus of my
appraical.
2a view of the foregoing, as appropriation of $39,436,804.93
is assessary to restore the capital impairment of the Commodity Credit
Corporation as of March 51, 1943. It is recommended that - estimate
for a deficiency appropriation in that asset and in the following form
be requested from the Congress
no enable the Secretary of the Treasury, on behalf of
the United states, to restore the anount of the capital
inpoiment of the Commodity Credit Corporation as of
March 31, 1943. by a contribution to the Corporation as
provided by the Ast approved March s, 439,436,884,93." 1938, us amended
(15 1. s. Co 7230-1)
Faithfully years,
(Signed) III Morganthon, Jr.
Secretary of the freesury.
The President,
The White -
February 18 1944
Regraded Unclassified
350
25
Fabruary 1,1944.
The Nonorable
The Secretary of the Treasury
Washington 25, D. C.
Sir:
In compliance with instructions in your letter of April 12,
1943, the undersigned committee on your behalf has unde an appraisal
of the assets and liabilities of the Commodity Credit Corporation for
the purpose of determining its net worth as of March 31, 1943, as 16"
quired by the Act approved March 8, 1938 (52 Stat. 107), as amended.
The Ast approved March 8, 1938, provided that the value of
the assets of the Corporation shall, insefar as possible, be deter-
mined on the basis of market prises at the time of appraisal. These
provisions of appraisal were emended by Public Law No. 147, 77th Con-
gress, approved July 1, 1941, whereby such assets were to be valued
on the basis of cost, including not more than one year of earrying
charges, or the sverage market prices of such assets for a period of
twelve months ending March 31 of each year, whichever is less.
There is attached herete as Exhibit 4, a balance sheet of
the Commodity Credit Corporation as of March 31, 1943, showing its
assets and liabilities on the basis of its book values, together with
adjustments to reflect the appraised value of assets, insofar as pos-
sible, in accordance with the provisions of the Act of March 8, 1938,
as amended.
There is also attached an operating statement, Exhibit 3,
covering the period from October 17, 1933 through March 31, 1943,
showing & detailed cusulative deficit of $183,387,408.53, as a result
of this approisal. this cumulative deficit, as distributed over the
various commedity programs of the Corporation is shown in the attached
Exhibit 0+
Regraded Unclassified
351
- 2 -
Accounting Verification
At the request of the Department, arrangements were made with
the Reconstruction Finance Corporation to assign its auditors to make a
special emamination of the books and related records of the Commodity
Credit Corporation as of March 51, 1945. the conditto has had the
benefit of this emamination is making this appraisal.
Classification of Commodities
For the purpose of this appraisal the various commodity programs
of the Corporation have been elassified, as follows:
Commodity leans
Exhibit D
Representing direct loans made by the Corporation, or loans
purchased by the Corporation from the various lending
agencies cooperating in the lending programs.
Commodity pools and purchases*
Exhibit I
Pooled commodities represent commodities delivered to the
Corporation by producers in payments of their loans. These
commodities are classified as (1) "Pool-Owned" covering
commodities the title to which has been aequired by the
Corporation, or (2) "Produsers-Pool" covering commodities
which are to be marketed w the Corporation and upon final
liquidation any returns over the Corporation's investment
in the eammodity to be distributed to the participating
producers. Purchased commodities represent outright pur-
chases by the Corporation, as authorised by the President.
of the United States, for the purpose of acquiring stra-
togic commedities essential to the war effort and for
other purposes.
Commodity leans (agresents to purchase)
Rehibit F
Representing leans to preducers by eligible lending agencies
vader agreements through which the Corporation is committed
to purchase the loans from the lending agencies under certain
specified conditions.
Valuation of Commodities
is indisgted in the atteshed Exhibite D, B and 7, the above
classified commedities, by crop years or programs, have tem appraised,
where possible, en the basic of oest (including not more than one year
Regraded Unclassified
352
- 3 -
of carrying charges) or average market value for the year ended
March 31, 1943. whichever is lower, in accordance with the provisions
of the lot of March s, 1938, as enended. the adjusted book balances,
the appraised value of the commodity and the appraisel less as of
March 31, 1943, by crop years, are shows in eash of the above exhibits.
An independent verification of all average market prices was
made by representatives of the Treasury and the date in the attached
statements were checked to the beeks and records of the Corporation.
In some instruces market quotations were net available for the particular
commodities hold by the Corporation. In these cases, certifications of
prices applicable to such commodities were obtained from specialists of
the Corporation who are familiar with the marketing of these commedities.
Cotten: The average market value of cotten was determined on
the basis average grade of 15/16 inch middling cotten en the team (10)
designated spot markets as published in the efficial quotation schedules
issued by the Agricultural Marketing Service of the Department of
Agriculture.
Grains: The average market value of all grains was determined
on the basis or the weighted average local market prices, according to
location, as appearing in the Mid-Month Local Market Price Reports pub-
lished by the Department of Agriculture, giving effect, where required,
to price differentials on the basis of grains stored in steel bins,
country elevators, sub-terminals and terminals.
Naval stores: the sverage market value of turpentine and
rosin was the basis of prices quoted in the Savennah
Naval Stores Review, Savanah, Georgia.
Tobacco: There are no public markets or published prices
for prised WHOLE. Consequently, the average market value in relation
to "Cost, including not more than one year of earrying charges" could
be developed only on the basis of its prespective sales values. As in
former years' appraisals, this information was furnished by the Director
of the General Crops Division of the Commodity Credit Corporation, and
who arrived at after giving eareful consideration to the inventories,
age, and proppective market trends.
Purchase programs: the Corporation has in operation, by
authority or 180 of the United states, three major purchasing
programs, Agricultural Supplies Purchase Program, Foreign Purchase
Program at General Commedities Purchase Program.
Regraded Unclassified
353
Agricultural Supplies Purchase Program This program was
instituted for the purpose of facilitating the domestic production of
strategic commodities formerly imported or the production of substitute
commodities. The Corporation 1s authorised to purchase such supplies
and FEW materials and to whilise the services of the Agricultural M-
justment Agency and other agencies of the Department of Agriculture in
earrying out the program. Same lesses are being insurred in the opera-
tion of certain vegetable oil projects under this program, principally
the Cettem seed, Peanut, Seybem and Linesed Oils. These lesses involve
the purchase of these vegetable oils for sale to producers and processors
at commodities. a lower price in order to stimulate production of these strategic
Foreign Purchase Programs This program was instituted primarily
for the purpose of (1) sequiring strategic commodities essential for the
production of my materials, (2) supplying civilian and military demands
for food, and (3) supporting the economics of neighboring comtries whose
export outlets ware jespardiged as a consequance of the Mar. Purchases
were made with the approval of the Board of Reonomic Warfare. Through
March 31, 1943, this program would have operated at a small profit except
for net losses from uninsured war-risk sinkings and excessive costs of
marine and war-risk insurance and transportation costs which were absorbed
by the Corporation on certain commodities.
General Commodities Purchase Program This program was insti-
tuted with the view of ***rdinating In one agency familiar with domestic
agricultural production and marketing conditions, the large scale pur-
chases heretofore made by the Red Cross and foreign buying agencies for
shipment overseas. purchases by such agencies were made on
an energency basis for immediate shipment and were nesessarily determined
by immediate needs, shipping facilities, and funds available at the time
of purchase. The offect on the domestic agricultural economy of such
periodis buying was to create local and temperary conveities end flustu-
ating prices, without afferding say approciable benefit to American farmers.
Purchases under the program are now made with regard to seasonal peaks of
production, marketing and processing and serve to support prices to farmers
at proviously guaranteed levels. The program is handled through the Ped-
oral Surplus Commedities Corporation, as agent for the Commodity Credit
Corporation, and the commedities are stored in the form and at losations
most satisfactory for meeting energency needs. The purchased commodities
are released to strategic way enterprises, principally for shipment abroad,
and mestly in collaboration with the Board of Beenewis Warfare (now the
Foreign Recomic Administration), Mar Production Board, and the Department
of state. lbst of the commedities are disposed of through the Lend*Lease
Administration (now the Foreign Administration), or other
Government agencies at cost to the Corporation plus a mark-up of 2%
through April 30, 1942, and 15 thereafter.
Regraded Unclassified
- 5 .
354
Principle of Appraisal: The appraisal principle of "Cost,
including not more than one year of carrying charges" or the "Average
market value", whichever is Lewer, cannot readily be applied to these
programs in the same namer as the regular commodity leans of the
Corporation. The innumerable classes and grades comprising the general
groups of commodities contained in the programs, the varied prices
according to lecations, and the look of published prices on many items,
make it impructical at this time to unke 60 independent appraisal of the
average market value of the commodities in the record inventories. For
this reason, the committee doema it advisable that these progrems be
appraised at the values shown on the books and records of the Commodity
Credit Corporation, and in the case of the General Commodities Purchase
Program those of its agent the Federal Surplus Commodities Corporation,
at March 31, 1943. and that the lesses on the programs be allowed as and
when such lesses are determined and become of record in the ascounts of
the Corporations.
All known losses through March 31, 2943. have been given effect
in this appraisal with respect to the Agricultural Supplies Purchase
Program and the Fereign Purchase Program,
Due to deterioration and other causes same losses my be -
tained on the General Commodities Purchase Programs The committee has
therefore deemed it appropriate that the sales mark-up on this program,
including certain applied interest income, be established as & reserve
to cover such losses, including interest and administrative expenses
applicable to the program.
Valuation of Assued daterest Reseivable
In determining the value of assets on the basis of "Cost,
including not more than one year of earrying charges". accrued interest
due the Commodity Credit Corporation on commodity leans has net been
treated as a factor of cost OF carrying charges. Novever, sush ascrued
interest receivable has been valued in connection with the related
commedity to the extent, if say, but not to exceed the spread existing
between the "Cost, including not more than one year of earrying charges"
and the "Average market value".
Current Year Progress (2948-43)
the provisions of Public LAW 247. 77th Congress, approved
July 1, 1941, regarding "Comb, including not more than one year of
carrying charges" 10 not applicable with respect to ourrent year pro-
gras, due to the fact that such programs through March 31, 1943, have
net been in operation for & complete year and "see year of earrying
charges" have therefore not secrued en the program at the date of this
appraisal. For this reason, the premise was established whereby each
current year program (1948-43) would be valued at cost as reflected on
the books as of March n, 1943, or at average market value for the year
ended March 31, 1943, whichever 10 the lowere
Regraded Unclassified
-6-
355
Basis of Appraisal
The Cerporation's assets, secured by the various commodities,
were appraised in compliance with the provisions of the law, giving
recognition, insefer as possible, to "Cost, including not more than one
year of carrying charges" or "Average market value for the twelve months
ended March 31, 1943", whishever is less. The Corporation's liabilities
were adjusted, where necessary, to reflect it's - liability for the
purpose of appraisal.
No physical inventories were taken as at March 31, 1943, whereby
to determine the ascuracy of the quantities of collateral and inventories
reflected in the attached exhibits. The quantities of commodities are
reflected in accordance with the reports rendered by the sustodian Federal
Reserve Banks, certain regional offices of the Corporation and sundry other
agencies. Conserning these quantities the Mag Food Administrator was
requested to furnish information as to their physical existence the cor-
rectness of the unit and total costs, and their saleable condition at net
less than unit costs. the Treasury's letter requesting such information
and the Administrator's reply thereto are made & part of this report under
Exhibit I.
Restoration of Capital Impairment
Section 1 of the Ast approved March 8, 1938, as amended, pro-
vides "In the event that any such appraisal shall establish that the net
worth of the Commodity Credit Corporation is less that $100,000,000. the
Secretary of the Treasury, on behalf of the United States, shall restore
the amount of such capital impairment by a contribution to the Commodity
Credit Corporation in the amount of such impairment".
On the basis of this appraisal and in accordance with the above
provisions of law, the contribution due from the Secretary of the Treasury
to the Commodity Credit Corporation to restore the impairment of its
capital as of March 31, 1943, amounts to $39,436,884.93 as follows:
Not Worth
Capital Stock
$100,000,000.00
Adds Paid-in-surplue
Contributions by the
Secretary of the Treasury
to restore capital tapeir-
ment as of appraisals of -
March n, 1938
$94,885,404.73
March 31, 1939
119,999,918.05
March 51, 1941
1,637,445.51
Regraded Unclassified
- 7 .
356
Less: Surplus payments by
the Corporation to the
Secretary of the Treasury
for exeess contributions
as a result of appraisale
of -
March 31, 1940
$43,756,731.01
March n, 1942
27,815,513.60
$72,572,244.69 $143,950,523.60
Total Capital Stock and Paid-in Surplus
243,950,525.60
Deducts Cumulative deficit as a result of
appraisal March 31, 1943
183,387,408.53
$60,563,115.07
Adds Contribution due from the Secretary
of the Treasury to restors impairment
of capital as of March 31, 1943.
39,436,884.93
Total Net North
$100,000,000.00
Respectfully submitted,
Howard F. Barbolt
Treasury Department Reale
Mathaniel Royall
Reconstruction Finance Corporation
CanesonSferman
Comerom G. GATHER
Department of Agriculture
GEJonesime
1-27-14
Regraded Unclassified
COMMUNITY CHEDIT CORPORATION
NAME -
PRODUCT A
357
OF MARCH 1. 2563
less
Book
ASSETS
Das 2
Approised his
Partneted Less
Values
Approisal
of America
fork
As or
LIABILITIES
Due To
(Adjusted)
Nom
false
às or
America)
March 31, 1943
31, 1943
(Adparted)
of Listilities
4a or
is or
March 31, 1%)
and n. 1947
-
Cash is banks (foreign countries)
$193,185.25
MIL SERVIFICATED. AND DATAILE-
Cash - deposit with the Transport of the United Mates
309,357.85
Principal
On looks of Bookkeeping and Marrasta, Treasury Department
Accrued interest
$1,83,282,00.19
138,857.47
6,256,678.37
as helts of Oder Maturalag afficer, Thereof Department
1,331,876.09
Total
(Pare)
Total
2,053,276.66
(Nos)
2,053,276.66
STATE - OTHER
or DEPOSIT NIN na FINANCE
CHARGES,
Principal
Do committy loans (contra)
38,726,049.96
3,512,380.63
Interest.
On emmoditive - led or owned (contra).
58,826.95
13,162,987.60
On compdity loans - Arresmento to
Total
(None)
perchase (entra).
16,584,421.05
COMMUNITY LOVE EXECUT -
Total
71,260,292.28
[None]
33,260,202.28
Principal including charges paid
272,273,979.44
CHRISTS:
Interest receivable.
4,710,646.64
Accrued and other charges (contra)
Federal Crop Insurance Corporation
2,620,190.87
3,512,380.63
Lend-Lesse Administration
1,804,773.47
Total
280,497,006.71
5,685,662.90
74,01,30.00
Dosllocated nates.
253,088.00
Proceets of sales 1938-99 relains (contra),
229,566.88
PRODUCTY FOOLS AND
56,000.25
Principal including charges
1,693,613,104.32
Total
Accrued a and other charges (contra)
4,994,890.93
(None)
13,162,987.60
Total
1,706,776,091.92
53,688,310.17
1,653,307,781.73
ACCOUNTS EXTAPLE-
Purchases Under Deneral Connective
COMMUNITY LOARD to PUBLIAIRE UNIT -
Purchase Program
92,153,046.69
Principal (contes)
506,196,639.96
Other commetties minthased
26,803,620.27
Ancreased interest receivable (c/c/c)
3,903,546.89
Government of the United
2,491,547.26
Accired Interval receivable, backs (cont/dr)
3,643,623.09
Aprioditoral Algistems Agency
1,777,657.50
Address and other charges (contra)
16,584,924.05
Insurance presium payable
19,500.00
Total
530,528,734.79
55,920,924.50
473,607,810.20
Liquidation paline the producers cottem
1,155,758.32
"lorellaneous
60,278.00
LOANS una DAY COMMISSITIES) EXHLEST -
Total
125,600,600.12
(None)
125,500,400.12
Principal instating charges paid
2,341,057.54
Accrued interest receivable.
14,180.12
to DATES APT LESUES
Principal (sentire)
$06,196,639.06
Total
3,355,237.66
(Now)
2,315,237.66
Accrued laterent - net purchased
(ointra).
3,843,623.09
ACCOUNTS
Total
$10,040,263.05
(None)
Federal Surplus Commity Corporations
510,040,203.24
Land-Lass sales, General Commetities
INSURE no LOSS PROGRAM
8,904,267.67
(Nome)
8,904,267.67
Purchase Progres
$79,951,802.79
Lend-Less asles, account of tobacco
12,732,600.39
Total Idebilities
3,528,337,470.42
(Nome)
Section 32, Patie No. 120, 74th
Congress, Surplus Diversion Program
832,201.99
93,516,807.17
CAPITAL
100,000,000.00
(Nome)
100,000,000.00
Agricultural Adjustment Agency
$68,010.10
Federal Crop Insurance Corporation.
320,429.16
Total
94,705,348.45
(Nom)
94,705,246.45
Representing contributions by the
Secretary of the Treasury coverting
restoration of expital tepairment - of
Accounted deficit
CRASSE AND una ACCOUNTS RECEIVANCE
Claims for sales Procesia 1938-39 Relator (contra)
229,546.88
March 31, 1930........... 94,285,404.73
Brown March A, 2943
Murch 1, 1939
119,999,918.03
included loar the
Other Galas.
6,540,104.11
Other accounts receivable
6,110,162.47
Murch 31, 19d
1,637,445.51
in apprated of
Tirtal
(hone)
12,879,03.46
Less? Burgine payments nade to the
Secretary of the Treasury for
STATE ASD OTHER AUTHORI-
excess contributions as of
Less Ament of regital
Steel grain storage Idra.
$10,352,768.83
March n, 1960.
$43,736,731.01
legalment restored by the
Lesse learne for depreciation
3,359,391.03
6,993,197.80
March 31, 1942
27,815,511.60
73,572,246.00
Secretary of the Treasury
Nooden
19,140,906.73
4,086.50
143,950,523.60
Birth 3, 19/2-
Caster Iwan
Total
26,138,193.03
(Now)
26,138,193.03
Less: bank deficit
March 31, 190.
67,312,110.87
FLATURED AND
Indance reserve.
76,636,022.73
Bort of
334,408.63
Ament - fre the Secretary
Less: learn for depreciation
77,403.00
257,005.55
(Now)
257,005.55
of the Treasury to miss
capital as of
11, 1%3
(200m)
$116,074,897.66
Thist Liabilities, Capital and -
Total
Regraded Unclassified
COMMODITY CREDIT CORPORATION
EXHIBIT 3
358
OPERATING STATEMENT
Statement of Income, Expense and Appraisal Losses from October 17, 1933 to March 31, 1943
(This statement covers Items listed in Exhibit o)
INCOME
EXPENSE
Portion Credited
Portirn Charged
to Reserve for
to Reserve for
Interest Income:
Gross
Loss on the
Net
Cross
Loss on the
Net
O.C.P. Program
O.C.P. Program
Interest on loans purchased
$31,181,482.70
$31,381,482.70
Interest expense
864,631,551.65
$4,707,569.60
$39,943,982.05
Interest on loans not purchased
10,443,448.85
10,443,448.85
Administrative expense
24,904,783.56
2,847,731.43
22,057,052.13
Interest on loans to Secretary of Agriculture
21,696.81
82,407.58
19,289.23
Interest on funds held by Resonstruction
Total expenses
69,556,335.21
7,555,301.03
62,001,034.18
Finance Corporation
2,387,055.26
220,356.59
2,166,698.67
Miscellaneous interest incose:
1938-39 Cotton
1,429.60
1,429.60
1935-36 Pooled cotton
12,691.92
12,691.92
1931-36 Tobacco
1,242.08
1,242.08
On wheat sold to Federal Surplus Commodities
Corporation
8,957.32
8,957.32
44,258,004.54
222,764.17
44,035,240.37
Other Miscellaneous Income:
Profit on sales of rubber
11,090,907.04
11,090,907.04
Sales mark-up on General Commodities Purchase Program
16,236,804.53
16,236,804.53
Sales mark-up on sales of tobacco
3,328,547.73
3,328,547.73
Sales mark-up on Agricultural Supplies Purchase Program
94,147.90
94,147.90
Miscellaneous Incose 1941-42 corn
171.03
171.03
Miscellaneous over payments by producers
481,261.06
481,261.06
Miscellaneous income, sales of loose cotton
176,355.40
176,355.40
31,408,194.69
16,236,804.53
15,171,390.16
Total Income
75,666,199.23
16,439,568.70
59,206,630.53
Net expenses (carried down)
2,794,403.65
62,001,034.18
62,001,034.18
Net expenses (brought down from above)
2,794,403.65
Actual losses from October 17, 1933 to March 31, 1943
64,518,107.22
67,312,510.87
Adds Potential losses based upon appraisal of March 11, 1943
116,074,897.66
Net losses
$183,387,408.53
Regraded Unclassified
359
COMPORATE CREDIT -
COUNT
STATEMENT of MD. APPRAISAL
X 17. 1911. = AND 9. 1963
Description
Grant Total
Cotton
Corn
Rest
Rgo
hrier
Orda
Saybene
Plazared
Tobacco
Surgham
Female
Stope
Better
and Bosto
ISSUEL
Interest A Leans purchased
$31,381,482.70
713,487,418.01
710,896,008.22
$2,455,399.35
$32,254.63
873,316.57
$005,29
12,183.00
12,715.20
Internit - loans not purchased
10,443,448.85
6,199,991.55
$2,111,318.66
$214,700.13
897,119.71
8776,093.40
1,928,598.23
4,132,192.35
22,410.01
73,647.66
161.71
24,639.18
19,116.10
-
-
Driver et an loans se Secretary
30,262.45
of Aprivalture
19,207.23
7,608.90
4,747.32
1,097.81
9,83
9,85
,16
,07
,24
1,603.84
207.62
10.87
17.76
13.76
-
Interest - fund with E.F.C.
2,166,698.67
1,443,623.55
265,375.91
206,969.64
675.81
00.14
1,83
1.83
20,18
121,076.70
interest income
39,970.23
3,281.27
3,764.00
1,030.45
20,143.19
1936-39 Cotton
1,429.60
1,429.50
-
-
-
-
-
-
-
-
-
-
*
-
-
1935-30 Posied oction
12,691.92
12,691.92
-
-
-
.
.
-
-
-
-
-
1931-16 Tobacco
1,242.00
-
F
-
-
-
-
1,242.00
-
-
-
-
.
Thest sold to F.S.C.C.
5,957.32
-
-
8,957.12
-
F
-
-
-
-
-
-
Total interest Income
64,035,240.37
19,112,563.53
13,094,809.72
6,807,816.67
35,450.30
147,354.22
1,273.49
26,826.52
21,651.80
873,359.00
2,151,576.31
217,992.27
191,833.21
98,164.90
796,236.11
our Income
Profit an sales of rubber
11,090,907.04
-
-
-
-
+
-
-
-
-
-
-
SAINA eark-up en tobacco sold
3,328,547.73
-
-
-
.
.
-
-
-
-
-
Sales wark-up en A.S.P. Progres
-
.
-
-
-
-
-
-
-
-
.
-
94,147.90
Salra earli-up on O.C.P. Program
-
a
-
-
-
-
y
-
-
1
-
-
-
giscellaneous incose 1941-42 som
171.03
171.03
-
-
-
.
-
-
.
-
-
-
-
-
Viscellaneous overpayments by
proterers
481,261.06
239,637.79
25,732.75
17,826.22
(57.1)
08.14
3,22
107.11
34.10
36,701.93
358.14
-
-
-
Proseed sales of lonse cotton
176,355.40
170,735.40
-
-
-
-
-
-
-
-
-
-
1,22
107.51
34.10
3,367,249.56
357.14
-
-
Total miscellaneous Income
15,171,390.16
25,903.78
17,026.23
(57.53
41°.14
-
-
Total Income
59,206,630.53
19,528,756.72
19,120,713.50
6,025,642.00
11,907.89
147,972.16
1,276.71
16,936.03
71,696.20
4,240,60F.67
2,151,934.45
217,992.27
191,833.21
98,164.90
796,236.05
79,943,952.05
24,957,702.57
6,283,511.86
4,368,608.78
14,002.43
12,168.00
136.24
77.30
442.16
2,005,527.18
646,151.27
57,386.70
30,286.50
14,807.14
90,721.38
Interest expense
1,132,162.70
6,170.37
7,266.20
70.56
48,03
282.28
1,157,112.20
279,611.60
22,021.23
12,063.21
6,120.64
36,213.09
administrative expense
22,057,052.13
10,768,207.59
5,819,497.98
Total expense
62,001,034.18
35,721,990.16
12,101,111.84
7,470,861.46
22,172.80
19,435.00
214.70
125.15
724.44
3,248,679.38
425,764.87
79,407.93
42,349.71
20,927.78
124,935.57
+16,193,237.44
1,017,581.66
- 655,218.67
33,725.03
128,577.36
1,061.93
26,M08.68
21,161.76
901,069.20
1,226,171.50
130,584.36
149,483.50
77,237.12
671,301.29
Net Locase or express (+)
- 2,794,403.65
#
,
.
-
-
-
-
7,019.92
-
-
14,918,993.61
1
ASD: Limidation gatina
54,726,003.53
+3,992.99
.
*111,336.06
-963,066.78
LESS: Liquidation losses
, 119,444,142.75
+41,077,426.99
+49,033,722.01
25,622.80
+3,254,436.80
+4,154,305.08
-
-
Hel. liquidation losses
- 64,518,107.22
54,918,995.61
-41,037,426.39
+3,992.99
.
-
*49,033,722.01
*25,682.00
7,039.40
+2,254,434.98
+4,154,305.08
#
*111,336.96
*961,046.78
Net profit or loss (+) before
appraisal of March 31, 1943
. 67,312,510.87
38,725,762.17
+40,019,544.93
$49,688,940.68
8,052.23
135,577.28
12,931.00
26,808.66
21,162.76
+2,928,133.50
138,584.34
36,146.56
+803,009.66
671,301.28
-
-
LASS, Potential further loss
+79,290,620.43
30,866.49
+176.47
-
-
-169,451.94
- 977,157.63
besed en appraisal March 32, 1943
*116,074,897.66
+30,716,163.17
4,044,030.66
Net profit or loss (*) after
(183,387,600.3)
8,009,599.00
44,061,875.59
$128,999,561.11
376,761.08
106,720.79
+3,107.53
26,708.68
21,161.75
+1,431,917.53
-3,523,291.13
130,584.34
38,146.56
671,301.2*
appealed of March n, 1943
General Committies
intedual
Foreign
Pursians Program
Chaven
Find mis
Fire
Teas and
Crimern
Indiber
Purchase
Ford and
Description
Prines
Dates
Vetch
Purchase
Stary
Program
Other
Program
Procrem
Tenans
"chair
Program
Products
Imme
-
-
15,851.59
-
-
747,546.27
-
Interest en loans purchased
287,432.29
20,751.28
36,191.73
7,650.00
15,483.20
-
-
-
.
52,630.07
-
-
-
Internet on loans not purchased
-
-
1
-
-
-
Internet or loans to Secretary
-
-
-,m
1501.00
14.33
.71
U.P.
7.14
667.04
-
-
,28
1
of irrinitore
80, PS
56.72
74.05
57,07
8.17
15,014.40
22,195.29
15,205.01
Interest or funis with N.F.G.
4,243.25
225.66
1,094.12
See footnite to doncerning application
of Income and excende on the Deneral
-
-
-
-
interest income
-
-
-
1
,
-
1
-
-
-
-
-
1918-39 Cotton
-
-
-
-
-
-
1
-
-
-
-
-
:
1/15-36 Pooled Cotton
I
-
-
-
-
.
-
-
-
-
1-32-36 Tobacco
-
-
-
.
69,743.89
21,057.61
671.93
-
Brut sold to F.S.C.C.
1,717.40
5,567.25
57.95
0,31
16,435.47
Total Interest income
191,756.39
20,000.00
104,915.92
-
-
-
-
.
11,090,007.04
-
-
-
Income
-
-
,
-
-
.
-
-
-
-
-
Tit an sales of rubber
,
-
-
-
-
94,147.90
Compotities Purchase Prime (other).
-
-
-
-
,
-
-
-
mark-up on Lobence actd
-
-
-
-
-
-
-
.
-
salve assis-up on A.S.P. Program
-
-
-
.
-
-
.
Sales mark-vo DEL O.C.P. Progres
-
I
-
.
-
-
income 1941-62 Com
-
-
611.40
12,328.94
17,388.91
127,309.48
64.16
-
-
=
overpayments by
76,64
-
-
-
-
-
.
protocers
-
-
-
1
14,16
11,090,007.04
106,478.84
127,309.48
-
-
-
17,199.0
Proceed sales of loose betten
611.60
76.64
-
-
-
-
-
Total miscellaneous Locame
-
171.38
74.47
11,107,321.51
176,270.73
18,46.02
127,901.41
Total Income
191,756.39
20,779.12
100,002.56
1,777.00
5,107.25
630,253.06
367,197.45
16,091.00
-
=
200.31
114,398.45
-
-
3,151.16
4,130.01
585.70
1,2%.66
1,611.00
156.78
183,748.93
771,596.19
216,410.79
10,666.95
-
-
Interest expense
$1,871.30
230.45
467.60
(%.10
Administrative expense
1,104.91
503,147.30
1,001,857.15
27,158.81
27,215.14
1,601.05
824.0
1,72.44
2,291.10
357.00
-
-
Total wagense
79,026.44
4,766.67
5,001.86
565,161.62
100,622.60
1,600
-1,618.72
-287.12
10,604,175.13
-
-
Net Income or expense (*)
113,669.75
16,632.95
104,010.70
-
-
-
-
+3,117,230.75
-
-$4,144,067.86
-
-
-
$12,165,265.73
Auto Li-vidation rains
-
-
,
4,144,067.26
- 2,131,595.29
-
-
+1,751.39
$175.76
-
.
12,165,265.97
+1,117,138.75
Liquidation Innome
.
-
-
Net liquidation
-
+1,751.79
1175.78
-
+3,462,300.17
100,822.60
4,344,007.84
42,431,595.00
Net profit or loss (+) tefore
10,604,175.13
12,990,846.65
appraisal of March n, 1963
112,649.93
12,701.46
103,934.94
min
1,856.81
+28
LEIS+ Potential further loss
4641,617.56
based - sporated n. 1%)
Net profit or lass (*) after
30,604,175.17
11,172,264.07
71,662,500.17
100,822.40
+14,144,067.86
approved of March n, 1/965
$112,660.94
12,90.56
$10.00
11,756.00
12 N
Indicates leases
Internet - has here propated to the various classes of I-ams the commition) en the casts of the monthly balan
understand in relation to MM services STATEM balance of leans outstanting.
Prurated - the verime commodities CR the harts of leter expense deteribution.
of $2,477.58 credited for Less - a.c. (nther).
of $220,350.99 tradited - Sam for Loss n.c.p.
- of 816,236,804.53 credited to for Loss O.C.F.
Reducive of $4,707,569.60 charyed to "lassive for Lass O.C.P.
Endowive of $2,847,731.43 charged % for Loss S.C.P. Phone.*
Regraded Unclassified
STATEMENT OF COMMON IT LOANS
360
EXEMPT D
M. OF MARCH R. 1963
BOOK VALUES (ADJUSTED)
APPRITSAL OF COLLATERAL
COMMUNITIES
Principal,
Accrunt
QUANTITIES
including
APPRAISED
Interest
Account Number
VALUE,
Charges Paid
due C.C.C.
and ditime Changes
Total
Mailer
Unit
Cost, The one
Average
Estimated Loss
Parlay Legan
Years Charges
Market Value
Vard 11, 1943
1940 Barley - Farm A
1920 Barley - Resealing Program
$1,707.41
$126.36
1,557.94
-
$1,833.75
1941 Barley . Form A
115.31
5,381
Bushel:
11,033.75
-
-
72,627.05
-
3,195.60
1,673.25
1941 Barley - Resealing Program
4,749
Bushale
1,673.25
-
371,533.21
-
75,622.65
-
1962 Marlay Form A
16,347.44
167,990
Bushels
75,822.65
-
-
387,880.65
-
1942 Barlay - Form a
63,316.09
733.46
051,030
-
387,880.65
-
64,069.55
-
6,586.11
76,29
116,662
769,05
Sushele
à 66,069.53
-
7,450.45
-
517,327.81
20,594.44
13,494
Bushels
7,450.65
-
Gern Loang:
.
788,05
538,710.30
1938-39 Corn
538,710.30
-
-
1939-40 Corn
3,108.27
-
-
152.57
3,108.27
-
10,081
Pushels
1938 Crop, 1939 Crop (Bassaled)
1,108.77
.
-
-
7,365,997.50
580,116.26
152,57
225
Pubels
152.57
-
1940-41 Corn
.
*
423,858.97
20,454.42
7,946,113.76
11,070,785
Bushels
7,493,299.82
-
1941-42 Corn
-
2452,013.94
2,901,484.91
39,785.66
444,313.39
687,322
Bushels
77,324.04
444,268.97
-
1942-43 Corn
44.12
305,994.00
2,753.95
3,020,594.61
3966,203
hatels
2,997,895.72
-
22,600.09
-
11,000,596.22
308,747.95
643,110.29
392,702
Pahels
$299,543.74
9,204.21
Cotton Loans:
79,324.06
11,723,030.55
10,038,725.35
299,563.74
484,761.46
1938-39 Cotton
4,788.20
1940-41 Cotton
1,623.87
80,00
9,839.65
6,492.07
80
1941-42 Cotton
454.57
Dales
1/6,492.07
-
-
228,00
45,530,509.51
1,537,771.36
10,522.22
22€
Bales
1/10,522.22
-
.
1942-43 Cotton
826,313.62
158,935,781.73
1,487,266.46
47,094,594.49
657,025
Dates
46,402,723.49
-
1942-43 Cotton - Farm Storage
1,043,901.95
1,491,871.01
719,519.25
171,466,950.14
5,849.65
$3.10
725,432.00)
2,020,487
Sales
215,200,438.34
2/172,192,362.14
+
.
Plasseed Losner
3,032,965.91
1,870,586.67
220,103,990.92
218,612,119.91
-
10°168'167'1
1941 Flasseed Form
7,607.61
284.34
1941 Flasseed - Form B
-
52.85
7,091.95
4,426
Pushels
.
-
1.96
7,091.95
-
1041 Flasseed Resealing Propres
2,698.72
54.83
=
Bahele
54.F)
.
-
100.00
1942 Flaxsed Form A.
-
18,953.26
2,799.60
1,969
Bushets
2,799.60
-
-
239.66
1942 Flaxseed - Fore B
-
19,192.90
6,116.11
8,30
Bushels
2/14,192.90
-
-
77.34
160,77
6,354.22
2,753
Patela
6,354.22
-
-
35,428.55
704.18
160.77
Grain Jonghum Loans:
35,293.50
36,293.50
-
-
1961 Grain Sorghum Form A
764.09
40.FF
-
1962 Crain Sorghim - Form A
804.97
2,230
Bushels
804.97
-
-
3,337.13
16.43
-
3,253.56
6,176
Bushels
1962 Grain Sergbus - Form 9
3,353.55
-
I
1,666.13
13,67
119,36
1,799.16
3,141
Bushels
1,729.16
,
,
5,767.35
70.9€
119,36
las Leans:
5,057.69
5,957.69
-
-
1940 Rye - fore A
348.53
4,01
-
353.34
306
Pugeria
-
-
1940 Rye - Ressoling Progres
22,482.74
310.83
-
22,793.57
50,244
Bushels
22,793.17
-
-
1941 Rye - Form é
39,627.54
758.22
-
40,385.75
68,720
Buesta
33,300.00
6,986.07
1941 Rye - Resealing Promo
197,263.60
3,712.56
-
203,078.25
350,604
Dushels
201,604.61
1,473.65
1942 figre Form è
36,590.13
431.36
-
37,021.49
19,001
Bushela
29,118.03
7,903.46
1962 fgre - form B
2,985.77
38.22
268.69
3,2 2.68
3,500
Bathela
-
202,057.00
635.32
301,300.31
5,356.10
268.69
306,925.10
224,751.52
65,175.00
16,998.50
Tutance Loans:
1940 Dark Fired
178,842.35
P,199.80
115.20
107,357.35
1,023,850
Penda
182,695.79
-
4,861.36
1941 Dark First
1,283,378.97
29,801.77
3,198.25
1,316,378.99
6,624,840
Toanto
1,04,00.59
-
1,908.60
1,462,221.32
38,001.57
3,513.45
1,303,736.34
1,496,966.13
-
6,770.16
Purpentine - Roaln Loange
1938 Turpentine and Rosin
736,372.58
183,926.64
3,515.91
923,815.13
28,111,294
Permis
(Bostn)
-
5,986.90
1939 Turpentine and Besto
363,889.49
29,095.63
1,660.45
394,454.57
13,479,506
Fermits
(Reain)
365,200.40
-
9,256.17
1940 Turpentine and fostn
2,889,499.49
749.94
15,991.10
2,906,240.43
115,663,787
Founts
(Fostn)
2,503,511.92
,
402,724.51
1941 Turpentine and Hosin
1,589,381.68
52,212.70
R,745.84
1,650,340.22
67,404,796
Pounda
(Roein)
1,471,152.17
-
179,188.05
1942 Turpentine ed Rostin
3,370.69
2,120.23
77.05
5,567.97
29,093
Pounts
(Posin)
5,567.97
-
-
1,222 Gallens (Turenting)
5,582,513.93
268,105.04
29,799.35
5,283,260.69
-
5,880,418.32
597,157.63
Meat Leange
1439 Wheat - Form À
1,315.44
1,385.73
2,511
Bahala
1/1,385.73
-
-
70,29
-
5,347
Bushele
3,811.87
-
-
1940 Whest Form A
3,612.50
199.37
.
3,811.57
1940 Rest From I
488.67
26.93
515.60
543
Bashele
1/515.60
-
-
-
3,046.70
58,245.90
70,785
Bushels
1/58,245.80
-
1740 thest- Resealing Program
55,199.10
.
VI theat. Form A
2,072,629.57
110,565.59
2,235,279.92
2,186,442
Public
2,179,645.34
55,434.58
$2,284.76
1,132,785
Righels
1,047,796.35
-
45,194.78
41 theat Form a
976,321.00
24,631.35
92,038.78
1,092,991.13
17,043,183.23
429,977.85
866,727.35
18,339,888.43
17,334,548
Pushels
17,293,727.87
-
1,000,260.56
41 Wheat - Resealing Program
6,373,723.10
6,338,095
Bushels
1/1,104,133.52
2/4,487,823.93
781,765.65
4.2 theat - Form &
6,306,548.30
67,174.50
12,049,854.48
Benels
1/47,014.30
2/10,943,291.61
1,199,548.57
- Whest Form E
11,469,200.65
122,165.30
458,488.53
1,527,820.25
40,155,696.06
17,510,960.00
37,928,298.46
699,577.35
E: 150 Loanu
2,160.78
242,247.93
147,906
Bushels
242,247.93
-
.
240,087.15
-
- Soybeans
256,935,664.11
17,875,679.70
5,605,662.90
TOTAL COMPLETT LOANS
272,273,979.64
4,710,646.64
3,512,380.63
280,497,006.71
a
in firsl liquidations eith comparatively nominal accounte in both inventories and monetary values, subject to investigation and adjustment. These programs ware apprated at book min M at "arch 3, 1943,
pending determination of final adjustments,
2/ crent year programs, appraised on basis of book value or average partnt value, whichever is lower, in accordance with premise ested en page of report.
Regraded Unclassified
volunteer* and "Excess" sheet in these current 7542 progress enlued at heck value, due to activeely low loan rate on with ment.
361
COMMITTY CHFOIT CORPORATION
STATIVINT (If COMMUNITY POSE ARD PURCHASE
PARCH n. 1%)
Pook Values (Adjusted)
of Collateral
Commodities
Principal
Account
Total
Quantities
Approised Value
Extimated
including
and
charges paid
other charges
less
Funter
0-16
Cost plus con
Average
vear's charges
seriet value
March n, 1943
DISCOUNTY POOLS:
1940-41 Barley Pool
$2,052.98
1941-42 Barley Pool
*2,052.98
216,791.56
3,470
Pushels
$38,019.74
1/*2,052.98
1942-43 Barley Feel
254,811.30
460,175,
Bushels
1,035.90
224,184.86
$30,626.44
-
1,035.90
1,825
Rushela
2/41,028.07
7,02
219,880.44
38,019.74
257,900.18
-
-
226,237.84
1,028.07
30,634.27
1938-39 Com Poel
40,548,654.42
1,715,148.27
42,263,802.69
51,978,400
Hushele
19,752,046.87
-
2,511,755.82
1934-35 Cotton Pool
66,628,587.70
242,515.06
66,881,102.76
617.771
Males
1937-38 Cotton Pool
53,234,847.67
-
13,646,255.09
137,523,344.37
841,312.46
138,364,656.83
1938-39 Setten Peol
2,524,288
Males
122,882,339.84
-
15,482,316.99
3,000.30
12.14
3,012.44
51
Males
1/3,012.44
-
204,154,932.37
1,093,839.66
205,248,772.03
-
-
176,120,199.95
-
29,128,572.08
1939-40 Pore Peol
1,163.54
-
1,163.54
1,560
Rushels
1/1,163.56
-
-
1940-41 Rye Peel
3,825.28
-
3,825.28
6,020
Pushels
1/3,825.28
-
-
1941-42 Rye Pool
305,988.67
41,771.60
347,760.27
505,587
Pushels
-
289,493.88
58,266.39
310,977.49
41,771.60
352,749.09
-
-
4,908.82
209,493.60
18,266.39
1939-40 Wheat Pool
2,828,221.25
150,917.80
2,979,139.05
2,839,484
Pushele)
1940-41 Whest Pool
84,642,486.00
4,027,130.00
88,669,616.00
61,947,617
Pushele)
1941-62 Whest Pool
171,557,098.65
4,900,737.80
176,537,836.45
(140,754,070
Pushels)
259,027,805.90
9,158,785.60
268,186,591.50
(225,541,171
Pushels)
247,251,89.23
-
20,934,782.27
1940 Dark Fired Tobacco Pool
180,763.16
1,109.45
181,872.61
1,012,560
Founds
170,025.13
-
2,847.48
1940 Flue Jured Tobacco Peel
475,259.08
1,763.87
477,022.95
2,450,098
Permits
476,418.21
⑉
564.74
656,022.24
2,873.32
658,895.56
-
-
655,483.34
.
3,412.22
Total Pecls
504,918,272.86
12,050,238.19
516,968,711.05
-
-
464,010,766.05
290,521.95
52,667,423.05
XAMIDITIES PURCHASED:
Tobacco:
1940 Five Cured
9,767,356.66
13,537.95
9,780,894.61
39,186,507
Pounte
9,689,152.09
-
91,742.52
1961 Dark Fired
2,193,097.09
6,651.26
2,201,748.35
13,036,042
Peranda
2,200,332.22
-
1,416.13
1941 Flue Cured
15,609,796.65
55,410.17
15,664,906.82
49,893,300
Pounda
15,598,795.91
-
66,110.91
1942 Dark Fired
452,723.61
1,279.95
454,003.76
1,755,804
Pounda
454,003.76
-
-
1942 Flow Cured
61,063,537.66
87,135.11
61,150,672.77
125,368,822
Peunda
61,150,672.77
-
-
1942 Flue Jured (Special)
28,073,085.28
54,552.63
28,127,637.01
54,146,510
Pounda
28,127,637.91
-
-
257,396.38
.
257,396.38
473,479
Peunda
257,396.38
-
-
1942 Burley
117,418,693.53
218,567.07
117,637,260.60
.
-
117,477,991.04
-
149,269.56
When
1942 Wheat
396,125.39
-
396,124.39
361,740
Bushels
396,124.39
-
-
112,718,939.49
093,982.34
113,612,921.83
Schedule
Mr. 1
102,450,406.30
10,520,899.97
641,617.56
Agricultural Supplies Purchase Program
-
105,896,516.75
Schedule
No. 2
105,896,516.74
-
-
Forwign Purchase Programs
105,896,516.75
.
General Commodities Purchase Pregres
-
620,733.22
-
-
Dairy Products
620,733.22
-
620,733.22
852,643,823.00
-
-
851,643,823.08
.
-
851,643,823.08
-
Other Commodities
-
852,264,456.30
Schedule
Nr. 3
852,264,556.30
-
-
852,264,556.30
1,189,807,380.07
-
-
1,178,485,593.78
10,520,899.97
800,887.12
Total Purchases
1,188,694,831.48
1,112,549.41
Total Feels and Purchases
13,162,987.60
1,706,776,091.92
-
-
1,642,496,359.83
10,811,421.92
53,468,310.17
1,693,613,104.32
V
Programs in final liquidation with comparatively nominal amounts in beth inventories and areatary values, subject te investigation and adjustment. These pregram - appraised at boek values as at
Producer's Current year Feel, program, representing appraised commedities on basis of delivered everage by market producers value une in accordance maturity with of their premise notes, cited such en committies page to be marketed by the Derreration, and upon firal liquidation any ever-plea,17 any, to
March 31, 1963, pending determination of final adjustment
of report.
be distributed to the participating producers.
Regraded Unclassified
362
CREDITY
Statement of Loans Held by Lenting Agencies
and Value of Pledged an Lees
Due to Apprecial, " of March
1963
2
Retimated Accrued Interest
Principal,
Approisal of Dellativel
Commodity
Estimated Accrued
Including
Due Banks
The
Tarehcuse Charges
Charges Paid
as of
Total
QUANTITIES
APPRAISAL VALUE
Patiented Less
" of
March 31, 1963
to March 31, 190
March 31, 1943
2001 plus FRB
image
bards 33, 1962
Musher
Unit
Year's Charges
Market value
196 Barley - Form A
$13,880.23
8306.32
8306.32
190 Barley - Form B
-
2,548.08
56.23
514,492,87
22,000
Pushala
56.23
$14,492.87
-
-
1962 Barley - Form A
$599.79
4,377,194.07
26,263.17
3,260.33
7,382
Bushels
26,263.17
3,028.11
-
$232.23
1962 Barley - Form B
-
642,927.10
3,857.56
3,857.56
4,429,720.41
8,295,923
Tushels
1/4,429,720.61
-
-
70,247.32
5,036,349.48
30,483.28
720,649.54
1,202,865
Pushale
720,599.54
-
-
30,483.28
70,847.11
5,168,363.15
5,168,130.93
232.22
1960 form - Form A
8,624,381.01
290,629.83
290,629.83
-
190 form - Form A
23,874,065.25
9,205,640.67
14,146,868
fushale
9,044,376.56
-
161,264.11
415,997.41
415,997.41
-
1942 Com - Form A
40,779,393.03
147,705.66
24,706,060.07
32,746,706
Pushale
24,648,173.64
-
17,886.43
147,705.66
-
73,277,839.29
41,074,004.35
52,763,110
Pushels
1/40,246,401.91
-
828,362.64
854,332.90
854,332.90
-
74,986,505.09
73,934,991.71
1,047,583.38
1941 Jotton
9,000,779.71
160,904.35
220,827.35
396,732.31
1942 Cotton
9,779,243.72
140,255
Nales
9,683,523.64
-
95,720.08
51,330,772.93
206,729.41
206,729,41
311,051.88
52,055,283.63
610,654
Rales
52,055,283.63
-
-
60,331,352.64
367,633.76
427,556.76
707,784.19
61,834,127.35
61,738,807.27
95,720.00
1962 Flaxred - Form A
1,279,408.09
7,676.45
7,676.45
-
1942 Plasseed - Form I
1,294,760.99
582,442
flushels
1,294,760.99
-
-
633,472.32
5,000.83
5,000.83
21,573.16
865,067.14
370,037
Pushale
865,047.14
-
#
2,112,880.41
12,677.28
12,677.28
21,573.16
2,159,808.13
2,149,600.13
-
I
1942 Orain Sorghum - Form A
14,291.81
49.34
49.34
-
14,390,49
28,993
Bushala
V
14,390.49
-
-
1942 Orain Sorghun - Pora a
2,462.42
8.50
8.50
151.13
2,630.55
3,977
Pushals
-
1/12,454.00
176.47
16,754.23
57.84
57.84
151.13
17,021.04
14,390.49
7,456.00
170.47
1941 Rye - form &
15,153.77
325.08
325.08
-
15,803.93
48,582
Bushele
15,003.93
-
1942 live - form A
2,673,506.07
12,854.80
12,854.80
-
2,699,215.67
4,470,719
Pushels
-
/2,206,375.65
492,837.02
1962 live - form 9
79,393.68
381.75
30.75
7,136.00
87,293.98
146,246
Bushels
-
70,582.58
16,711.40
2,768,053.52
13,561.63
13,561.63
7,136.80
2,802,313.58
15,803.93
2,276,961.23
509,568.42
1942 that - Fors A
164,295,297.09
1,168,072.04
1,168,072.04
I
166,631,441.17
140,434,365
Pushals
-
1/142,137,852.21
24,293,588.96
1942 theat - form a
193,078,552.46
1,372,709.16
1,372,709.16
15,777,431.66
211,601,402.44
166,078,228
Pustele
-
1/180,627,257.38
30,974,145.06
357,373,849.55
2,540,781.20
2,540,781.20
15,777,431.66
378,232,843.61
322,963,100.49
55,267,734.00
1962 Scybeans
5,279,160.84
24,096.00
24,096.00
-
5,327,352.84
3,334,109
Pushels
1/ 5,327,352.84
-
-
$506,196,639.96
$3,843,623,89
$3,903,546.89
$16,584,924.05
$530,528,734.79
$148,363,285.30
$325,244,524.90
$56,920,924.39
These loans are held by banks and lending agencies under contracts to purchase whereby the Comodity Credit Corporation la obligated to purchase the notes when presented prior to acturity dates at the interest rates above.
late of Interest
Estimated Dates
Commodity
Maturity
Due Banka
Due 2.9.2
Interest Ascruale
1941 Barley, Form A
April 30, 1942
1-1/2%
1-1/25
10-11-01
through
3-31-43, inc.
537 days
1941 Barley, Form B
April 30, 1942
1-1/2%
1-1/2%
10-11-41
through
3-31-43, inc.
537
April 30, 1943
1-1/25
1-1/25
11-6-62
through
3-31-43, inc.
146
1942 Barley, Form A
1942 Barley, Form B
April 30, 1943
1-1/25
1-1/25
11-6-62
through
3-31-43, inc.
146
1940 Corn, Form A
August 1, 1943
1-1/25
1-1/25
1-1-0
through
3-31-0, Inc.
820
2-1-42
through
3-11-0, inc.
424
1941 >em, Form A
August 1, 1944
1-1/25
1-1/25
1962 Corn, Form &
August 1, 1945
1-1/25
1-1/25
1-3-0
through
3-31-0, the.
2/eal/
1941 Cotton
July 31, 1942
1-1/2%
1-1/21
11-1-0
through
7-31-43, inc.
273
<
2
$
6-1-42
through
1-31-0, Inc.
243
July 31, 1943
1-1/25
1-1/25
12-24-42
through
3-31-3, int,
98
1962 Otton
June 30, 1943
1-1/25
1-1/21
11-6-42
through
3-31-0, ins.
146
1962 Flaxseed, Form A
June 30, 1943
1-1/21
1-1/25
11-6-42
through
3-31-0, ino.
146
1942 Plaxseed, Form B
1-1/26
1-1/28
1-7-3
through
3-11-0, Inc.
B4
190 Pride Sorgham, Form A
June 30, 1943
1-1/25
1-1/21
1-7-63
through
3-31-0, inc.
BA
1962 Frain Sorghun, Pers B
June 30, 1943
190 "ye, Form A
1-1/25
1-1/25
10-26-41
through
3-31-43, inc,
522
April 30, 1943
June 30, 1943
1-1/28
1-1/2%
12-5-62
through
3-31-43, Inc.
117
1942 79, Form &
1-1/21
12-5-12 5-62
through
3-31-0, inc.
117
1962 178, form B
June 30, 1943
1-1/25
1-1/25
1-1/25
10-10-42
through
3-31-0, inc.
173
1942 Thest, Pura A
April 30, 1943
April 30, 1943
1-1/25
1-1/26
10-10-42
through
3-31-43, inc.
173
1962 thest, Form B
1962 cybeans
June 30, 1943
1-1/25
1-1/25
12-11-42
through
3-31-6), inc.
1/1114
Current year programs, appraised on bases of book value or average market value in accordance with premise cited en page of report.
recisate.
Regraded Unclassified
363
COMMODITY CREDIT CORPORATION
EXHIBIT 0
STATEMENT OF MISCELLANEOUS LOANS
(Other Than Comodity Loans)
AS OF VARCH 31, 1743
BOOX VALUES (ADJUSTED)
Accrued
Accrued
Interest
Narehouse and
Estimated Loss
BORROWER
Principal
Due C.C.C.
Other Charges
Total
Approisal Yelue
March 31, 1043
P.CILITATING LOANS:
Virgin Islands Company (Sugar)
1 125,227.43
3 439.77
$
-
3 125,667.20
$ 125,667.20
$
-
Broward County Fort Authority
22,457.49
4.39
-
22,541.08
22,541.88
-
Pan-American Shell Corporation in
137,454.21
-
-
137,454.21
137,454.21
-
Bar Somp Industrise, Incorporated
67,512.00
116,68
-
67,628.68
67,628.66
-
El 352,651.13
$ 640.34
$
$ 310,291.97
: 353,291.97
1
-
-
EQUIP ENT LOANS:
Fiber Flax Equipment
$ 307,372.00
$ 4,276.37
8
-
: 311,648.37
: 311,648.37
$
-
Poanut Squipment
1,064,630.14
175.01
-
1,064,805.15
1,064,505.15
-
Peanut Earehouse
603,510.12
9,087.70
-
612,598.02
- 612,598.02
-
12,894.15
-
Enspaeed Equipment
12,894.15
-
-
12,074.12
$1,988,406.41
$13,539.23
$
$2,001,245.69
$2,001,945.69
$
-
-
TOTAL MISCELLANEOUS LOANS
$2,341,057.54
$14,180.12
3
$2,355,237.66
$2,355,237.66
5
-
-
Regraded Unclassified
- amount
AMERICAN . PATIENTS - - - INFORMA YES
- some - THE TREATMENT
45 PER - - 13, 1443
Consistive Loss
Analgeta of
Payments for C/C/C
of - No. I
- Approval
-
designts of - betters - a - 3
March 31, 2962
Firms Secretary of
is Amerated
beaut, Apprical
March 31, no
-
S1, 1943
befiels
Definds -
i
-
to formal
I
II, 143
-
-
have 31, 190
Agencies
(Dation - 13
(Drives - #)
So., 31
Total - 43
(biles M. 10
- 4)
(Columi - 1)
- - #3
TON use FROM
Professional Lease:
1933-34 Detition
1936-35 Certifies
815.00
$461,700.51
1935-36
(48,121,800.66)
(62,567,603.56)
-
1037-38
34,621.71
65.04
55,472.35
-
-
47,M0,MVT.30
00,458,000.36
55,472.35
.
-
2139-40 Collex
8,038,268.56
233,487.00
16,140,607.25
(15,482,368,00)
-
-
38,605.87
(2,438.65)
11,007.22
4,771,755.84
-
-
5940-68 Cort/Lom
1961-42 Col/tum.
7,953.85
35,987.32
837,061.44
.
,
-
489,165.05
(975,184.98)
837,061.89
-
150-43
805,751.44
1,501,571.16
009,753.64
(1,50,981.00)
-
805,751.44
0,00,ms)
(29,138,572.00)
(93,720.00)
neil -
2933-34 Caties
229,627.51
-
3936-35 Setten
229,627.51
56,375.28
-
-
-
,
-
2,75.3
5,773.38
-
-
-
205,993.70
-
205,002.74
-
-
-
-
- Twice
(30,726,163.17)
(29,128,572.00)
(95,780.00)
- sews PROCRAMS
1535-34 Com
992,655.36
-
1934-35 Care
180,455.36
992,633.36
-
-
32,423.63
-
-
-
1935-36 Com
32,923.43
32,927.43
-
-
-
70,751.22
-
1936-37 Com
78,751.81
-
.
-
-
1,80.9
-
1937-38 Care
1,80.53
(4,182,614.64)
1,800.53
-
-
114.76
1938
Core, Reflamed
.
-
(528,890.06)
166,133.58
1938-39 Core
(362,756.68)
(279,891-14)
(6,81.3)
=
(30,199,498.32)
1939-40 Core
(1,665,09.41)
(1,212,625-47)
.
(8,006,950.62)
1,706,145.1)
1960-43 Com
(6,302,805.49)
(525,358.63)
660,156.33
134,795.70
2961-42 Core
(262,007.11)
(4.42)
(100,779.18)
(8,910,613.02)
7,750,003.00
(1,117,419.4)
2962-43 Core
(77),400-93)
(690,033.35)
(600,433.35)
146,639.70
(9,206.21)
Total
(51,607,954.98)
13,363,677.37
(38,244,277.61)
(4,044,230.54)
(7,50,755.0)
MEAT LOAF PROGRAMS
2538-39 Missi
(3,362,070.37)
(1)Jul)
(5,992,086.26)
-
-
-
-
1979-40 thest
235,762.63
=
Meet
(6,666,261.75)
-
1561-42 New
(44,008,106.06)
(12,136,560.85)
-
1863-43 Meet
1,00,201.63
(236,900.36)
Total
(M,663,320.30)
(79,200,626.43)
(55,367,736.00)
LOAN
1965-41
(318-46)
26,192.36
.
-
carley
30,138.80
13,156.90
16,153.05
(30,058.66)
-
(298.20)
IND-O
-
40,489.46
40,699.45
(743)
-
(7-0)
-
Total
M,447.60
-
(239,32)
- this
1/40-0 Grade Targinal
100.95
(197.01)
12,90
12.00
-
-
-
-
1963-42 Grate Surghine
281.57
(1,85-4)
(1,4%2))
(2,0627)
-
=
.
Cireda
(67,62)
(67-62)
108.95
(04)
-
-
(276-47)
Total
451.92
(3,480.51)
(1,89,51)
-
.
(279-47)
en LOMI
Type
(3,400.58)
(29,703)
-
-
.
-
I/NO-G lige
36,586.40
27,126.19
65,811.00
15,03.00
-
1961-42 the
(47,657,65)
(51,801.32)
(99,538.97)
(3,01,8)
(66,986.11)
(8,699,79)
(M,264.39)
Rye
12,01.50
(518,007.20)
Total
(35,697.48)
(513,143-23)
(566,590.71)
15,222.50
(16,998.50)
(38,264.39)
(909,548.42)
LOAS nome
Scybeane
500.45
655,72
1,169.16
1,165.18
-
.
-
1/82-43
25,641.55
25,601.55
.
-
.
Total
26,367.26
26,06.72
35,056.71
-
1
-
-
PLASSED LOAN
1,657.52
0,100.00
-
-
1941-07
6,532.52
-
1943-43 Flassed
-
11,754.01
13,256.20
13,254.00
-
-
-
.
Total
6,532.30
14,811.13
11,446.04
3,000
-
-
-
-
CRIMM CLOVER LOAN
(44.33)
(41.33)
(125-8)
(125.8)
.
-
-
.
MII LOAN
2934-35 Turportize - Rowin
(1,410,236.36)
-
(1,415,236.26)
(1,410,236.26)
-
-
(1,879,377.15)
(1,879,780.15)
[5,986.90]
-
.
3934-39 - -
(2,006,760.99)
Terporations and
107,660.71
(735,506.73)
(726,332.36)
(9,254.17)
(9,254.17)
-
-
Termetine - base
606,693.69
203,860.35
900,556.44
1,303,2015
(409)728-51)
.
-
and Bowin
2,09.5
(143,113.05)
(121,08)-51)
98,106.54
(179,108.05)
(179,198.05)
-
-
1942-0 -
49.48
0.00
49.45
-
-
Total
(3,158,301.41)
313,601.00
(1,265,879.53)
(2,MAN,521.00)
(997,197.43)
(997,197-AS)
-
-
TOBACCO LOME PROMIS-
-
-
-
-
3335-36
-
2137-30 Tobacco
(2,556.47)
.
-
(1,554,97)
(1,556.97)
,
,
1939 Remain
(2,996.05)
(2,996-95)
-
-
(2,996-95)
-
.
1939-40 Buf.
(136,138.59)
(7,865.09)
(163,905.60)
1939-00 F.C.
1,068,801.54
(336,789.21)
$54,000.00
-
$54,000.00
Del.
33,262.46
3,298.07
36,660.93
64,189.97
(7,709.5)
(4,861.50)
(2,867.48)
-
000,618.83
(94,307.26)
a
1940-41 Tobacco F.C.
(6,803.33)
877,151.56
Tobacco Burlay
$1,307.00
57,814.00
-
(1,492.11)
57,814.42
1961-43 Total D.F.
10,147.75
$1,428.32
61,576.47
64,000.00
(1,324.79)
(1,908.60)
(1,416,13)
.
1941-42 Tobacco F.C.
265,680.00
(149,780.46)
115,710.57
16,43.48
(66,130.00)
(66,118.91)
-
1/943-42 Nursey
110.93
12,062.13
13,772.78
13,372.78
-
#
Clgar Last
.
19.25
399.25
199.75
1
-
-
.
(88.76)
-
I
3562-43 Twice Def.
-
-
IND M.
162,872.55
-
-
(164,872.55)
(164,872.15)
-
-
1963-L) Thise
-
(30)-11)
(30-11)
-
.
-
-
IND - Pertipe
(38,17)
(10-17)
(M.17)
Total
194,000
(477,015.58)
(278,805.23)
(16,0640
(1,770,26)
04,40.20
-
NOME
180,605.57
150,605.37
-
160,605.57
-
-
-
-
4,327.61
4,322.61
4,322.66
-
-
I
-
-
MINIM LOMO
50,309.97
⑉
$1,84.77
50,200.77
-
-
1
-
EL jours
(077,689.00)
-
.
-
-
-
PSCAR LOANS
11,877.00
(3,751.39)
14,075.17
-
-
-
-
an -
1,131.60
-
1,10.42
1,13.42
-
-
-
-
- -
705,514.47
.
105,514.97
-
-
-
-
PM ARE - -
(12.30)
(SQUI)
(962.63)
-
a
-
-
CAMA -
N.M
130,005.00
196,005.00
-
-
-
-
(10,299.30)
-
-
-
-
- - - -
-
18,08.00
-
-
-
-
amounts - DELIVE
a
-
-
- - PINTAIN -
-
-
132,699.11
111,480.35
-
-
-
(7,38,7%4)
.
1
-
-
-
- PROCESS
#
,
#
-
-
- -
#
1
-
-
nen -
-
(1,43,385.8)
1
-
1
-
- all Progress
- Questing -
I
.
Tenal -
-
Regraded Unclassified
365
COMMODITY CREDIT CORPORATION
INVENTORY OF COMMODITIES PURCHASED UNDER THE
AGHICULTURAL SUPPLIES PURCHASE PROGRAM
AS AT MARCH 31, 1943
SCHEDULE 1
Appraisal of Collateral
Estimated
Purchase
Accrued
Estimated
Commodity
Cost
Storage and
Total
Quantities
Appraisel Value
Loss
Other Charges
March 31, 1943
Number
Unit
Coet Floo One
Average
Year's Charges
Market Value
Alaska Spruce Log Program
$1,265,141.07
-
$1,265,141.07
(Unabsorbed Costs)
$1,265,141.07
-
-
Bagging - Cotton
2,107,689.42
$1,747.58
2,109,437.00
21,208
Bales
2,109,437.00
-
-
Bags - Peanuts
221,349.81
-
221,349.81
1,464,497
Bags
221,349.81
-
-
Castor Bean Seed
82,862.60
-
82,862.60
1,899,785
Pounds
82,862.60
-
I
Cotton - American Egyptian
238,072.19
-
238,072.19
1,151
Bales
238,072.19
-
-
Cotton Linters
22,109,093.58
-
22,109,093.58
457,002,032
Pounds
22,109,093.58
-
-
Cotton Seed Cake and Meal
330.15
-
330.15
10.38
Tono
330.15
-
-
Dairy Animals
881,234.93
-
881,234.93
94.40
Cown
881,234.93
-
-
Hemp Seed
1,760,500.91
-
1,760,500.91
9,150,163
Pound
1,780,500.91
-
-
Hybrid Corn Seed
70,614.60
223.31
70,837.91
142,848
Pounds
70,837.91
-
-
2
Total
28,736,889.26
1,970.89
28,738,860.15
-
Naval Stores:
4,954,808.26
19,915.54
4,974,723.80
7,598,435-
Gallons
-
4,004,651.91
370,071.89
Turpentine
Rosin
6,168,000.94
19,792.79
6,187,793.73
174,154,816
Pounds
-
5,916,246.06
271,545,67
Total
11,122,809.20
39,708.33
11,162,517.53
10,520,809.97
641,617.56
Peanut Seed
579,252.81
579,252.81
7,494,577
Pounds
579,252.81
-
-
Pyrethrum Seed
1,359.07
1,359.07
450
Pounds
1,359.07
-
-
49,731,435.86
29,300,655
Bushels
49,731,435.96
-
-
Soybeans
48,879,132.74
852,303.12
7,239,394.04
7,239,394.04
345,605,395
Pounde
7,239,394.04
-
-
Soybean Cake and Meal
36,813.77
17,233
Bushels
36,813.77
-
-
Soybean Seed
36,813.77
Vegetable Oils:
Cottonseed 011
13,857,026.72
13,857,026.72
109,670,062
Pounds
13,857,026.72
-
-
771,114.58
5,951,575
Pounds
771,114.58
-
-
Peanut 011
771,114.58
1,495,147.30
1,495,147.30
12,719,066
Pounds
1,495,147.30
-
-
Soybean oil
Grand Total
$113,612,921.83
1/6102,450,404.30
$10,520,899.97
3641,617.56
$112,718,939.49
$893,982.34
Appraised at book value as at March 31, 1943.
Regraded Unclassified
366
COMMODITY CREDIT CORPORATION
SCHEDULE NO. 2
INVENTORIES OF COMMODITIES PURCHASED UNDER THE
FOREIGN PURCHASE PROGRAM
AS AT MARCH 31,1943
PURCHASE
COMMODITIES
COSTS
QUANTITIES
FATS AND OILS:
Babasau Kernels
$ 1,203,144.95
19,593,812 Pounds
Babasau Oil
1,146,823.10
9,289,365
11
Cashew 011
663,610.60
3,145,888
=
Castor Oil
773,138.10
6,732,243
=
Castor Seed
840,622.60
18,643,216
=
Cocoanut 011
9,056,889.20
108,442,296
=
Copra
3,395,927.40
71,359,936
=
Linseed Oil
2,006,951.25
20,310,613
=
Menhaden Oil
359,039.00
4,116,126
"
Neatsfoot Oil
48,419.90
343,145
E
Citicica oil
1,087,980.15
4,423,038
n
Ourioury Kernels
13,679.65
224,356
.
Palm Kernel 011
71,744.61
863,360
-
Palm Oil
2,441,939.20
34,830,163
-
Rapeseed Oil
1,356,735.60
13,095,668
=
Sardine Oil
2,421,591.65
27,087,857
=
Seal Oil
28,090.83
374,080
#
Sesame 011
121,104.54
908,459
=
Sperm 011
13,336,370
=
972,450.75
Sunflower Oil
2,747,133.20
28,881,500
=
Tallow
222,336.70
3,866,725
M
Tung Oil
23,767,839
=
8,362,951.85
Whale 011
2,084,066
#
142,543.12
Total
39,484,847.95
OR COMMODITIES:
Poston (Egyptian)
2,009,003.24
5,333,284 "
Citton (Peruvian)
2,981,448.03
15,366,839
E
324,225
=
Flax (Canadian)
125,995.58
F.18 (Peruvian)
1,349,761.40
2,904,571
=
1,477,502
-
Givcerine
258,287.45
15,913.65
221,800
=
ermeal
17,611.10
73,960
:
enone
2,137,375,888
=
"ar (Cuban)
53,808,437.98
15,032,630
#
5,845,210.37
Total
65,411,668.80
Grand Total
$105,896,516.75
Regraded Unclassified
COMMODITY CREDIT CORPORATION
SCHEDULE NO. 3
367
INVENTORY OF COMMODITIES PURCHASED UNDER
GENERAL COMMODITIES PURCHASE PROGRAM
AS AT MARCH 31, 1943
PURCHASE
COMMODITIES
COSTS
QUANTITIES
Acide
$ 1,253,222.80
1,363,010
Pounds
Baking Powder and Soda
12,507.91
333,738
.
Barley Products
209,837.08
7,538,042
#
Beans, Canned (Pork & Beans)
4,355,986.80
90,369,949
.
Beans Dried
18,780,542.93
333,340,738
.
Beverages
3,477,811.26
9,068,412
-
Biscuits (Hard Bread)
7,575,560.79
57,956,776
-
Candles
16,515.91
89,680
-
Carofene
119,679.96
5,467
Kilograma
Cereal Products
1,941,554.08
64,165,037
Pounds
Citrus Juices, Canned
1,980,791.52
23,371,979
.
Citrus Juices, Concentrated
4,609,229.36
866,162
Gallons
Citrus Oils
209,227.62
109,381
Pounds
Concentrated Foods
49,836.06
334,920
-
Condiments
150,572.35
4,161,653
.
Confections - Chocolate
198,483.39
1,110,837
-
Corn Starch
2,483,769.43
75,734,267
.
Corn Sugar
43,566.23
850,300
"
Cotton Linters
73,453.20
1,144,866
#
Cotton Raw
44,596,458.00
413,925
Bales
Dextrose
5,246.63
110,000
Pounds
Egge,Dried Egge, Dried
103,296,032.46
93,966,068
"
BEES, Prosen
1,711,213.63
3,320,111
"
Egge, Shell
11,201,324.96
43,113,955
"
Essential Oils
458,060.59
76,725
n
Feed, Miscellaneous
1,519,730.42
59,432,197
#
Fish, Canned
201,653,542
#
49,036,644.24
Fish Dried Salt
237,956.87
1,597,628
-
Fish Liver 011
240,521.86
87,100
Gallons
Flavorings
247,937.78
1,141,149
Pounds
Flour Graham
1,041,348
.
46,087.30
Flour Wheat
7,681,659.67
285,868,748
"
Fruits, Canned
6,408,713.20
67,099,965
#
Fruits, Dried
25,110,169.37
146,762,208
-
Fruits Fresh
1,075,529.55
11,615,202
.
Pruits Pulp
38,960,141
#
3,514,022.23
449,790
-
Gelatine
94,751.03
Hope
13,604.23
49,410
-
Insecticides
8,343.13
133,150
.
Jame & Marmalades
5,601,579
.
958,715.06
Kola Nuts
1,302.00
2,020
#
lard
20,168,571.15
128,391,580
Pounds
..inseed 011
21,565,219
.
3,256,324.02
Macaroni
312,150
-
26,281.81
Valt
11,490.88
81,658
.
Meat Products
267,116,258.86
849,774,575
-
Vilk Condensed
625,069.26
117,987
Cases
Vilk Dry Skin
20,953,957.33
133,574,198
Pounds
Milk Evaporated
82,056,660.28
20,580,073
Cases
368
- 2 -
SCHEDULE NO. 3
PURCHASE
COMMODITIES
COSTS
QUANTITIES
Vill Products (Butter & Cheese)
32,293,322.99
72,668,747
Pounds
Naval Stores
1,288,567.01
30,319,273
Oat Cereal
1,851,113.38
49,684,120
-
Oleomargarine
7,091,176.78
47,279,566
.
Olives, Canned
35,000.00
180,000
-
Peanut Butter
47,433.16
208,104
-
Peanuts
70,750.34
799,168
-
Peas Dried
10,602,076.87
160,173,845
R
Pectin
354,006.64
2,375,953
.
Pimientos, Canned
47,160.00
220,080
.
Pomace, Dried Apple
7,468.91
135,214
"
Popcorn
7,420.00
112,000
.
Poultry
11,266.20
28,148
.
Poultry Canned
460,616.24
378,220
.
Ration
692,863.79
1,232,940
=
Relish
590,647.85
1,845,256
"
Riboflavin
40,460.80
67,632
Grams
Rice
17,810,778.27
280,351,920
Pounds
-
Salad Dressing
9,672.62
55,596
#
Soap
2,154,161.24
29,962,722
Sorbose
.
84,598.04
41,699
-
Soup, Canned
276,878.34
3,235,824
.
Soup, Dehydrated
1,403,745.02
5,409,814
Soybeans Dried
121,923.63
2,793,148
#
30y Flour
1,202,629.80
20,164,025
Soy Grite
48,348,071
.
2,178,015.86
-
Sugar, Granulated
22,085,341.05
434,106,421
.
Sugar, Raw Cuban
1,351,728.20
47,433,685
-
Syrup, Canned
430,886.80
5,815,459
Tomato Products
45,917,048
-
3,929,992.75
Vegotables, Canned
9,647,439.32
121,515,796
.
Vegetables, Dehydrated
3,118,890.11
8,031,830
-
Vegetables, Fresh
411,047.18
13,371,732
Pounds
Vegetable 011 Products
24,940,051.34
169,358,627
.
Vitamin "A"
1,774,540.19
11,157,045
Million Units
Vitamin "B-1"
2,888,424.90
6,896
Kilograms
Vitamins Miscellaneous
2,688.19
687
Kilograms
Walnuts, Shelled
559,543.09
1,445,930
Pounds
Yeast, Dry
265,018.00
490,052
.
Supplies Miscellaneous:
Ct : Openers
171.00
3,000
Units
Serety Matches
275,375.71
1,655,700
Pounds
1,050.00
3,000
Units
Special Packs
7,095.00
119,553
Pounds
To let Paper
851,643,823.08
Dair Products:
620,733.22
1,294,651
Pounds
Bu ter
FRAND TOTAL
$852,264,556.30
369
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE Feb. 2, 1944
TO
Secretary Morgenthau
FROM
Mr. White HOW
1.
Stabilization Fund's Gold Transactions
During the three months ending December 31, 1943, the
Stabilization Fund sold approximately $197.9 million in gold
to foreign countries principally to be earmarked for their
accounts with the Federal Reserve Bank of New York. Sales
by countries were as follows:
Country
Sales in millions of dollars
Argentina
61.849
Brazil
29.925
Cuba
15.000
Ecuador
2.468
Iran
3.000
Ireland
2.275
Paraguay
.500
Peru
4.988
Switzerland
9.976
United Kingdom
50.000
Uruguay
12.469
Vatican City
.499
Venezuela
5.000
Total
197.949
During the same period, the Stabilization Fund sold
$9.2 million in gold to acquire local currency in India and
the Middle East for the purpose of financing United States
war expenditures. Sales by countries were as follows:
Country
Millions of dollars
India
7.387
Iran
1.354
Egypt
.494
Total
9.235
Regraded Unclassified
370
- 2 -
The Fund purchased approximately $5.1 million in gold
from the earmarked account of the Royal Netherlands Govern-
ment.
In order to maintain its gold balance, it also made net
purchases of $237.5 million in gold from the Treasury General
Fund, the gross purchases from the General Fund of $243.9
million being partly offset by the sale of $6.4 million in
gold to the General Fund.
As a result of the above transactions there was a net
increase of approximately $35.5 million in the Stabilization
Fund's gold holdings to about $42.9 million as of December 31.
2.
Treasury Gold Stock
During this quarter, the Treasury's gold stock decreased
237.5 million from $22,175.0 million to $21,937.5 million as
of December 31. Known and estimated sales and acquisitions
were as follows:
Sales
Millions of dollars
Sold to the Stabilization Fund
243.9
Sold to industry
6.9
Miscellaneous
1.6
Total
252.4
Acquisitions
Bought from the Stabilization Fund
6.4
Newly-mined domestic
3.6
Imports sold directly to mints and
assay offices
4.2
Miscellaneous (coin and scrap)
.7
14.9
Total
Regraded Unclassified
371
- 3 -
Net decrease in the Treasury gold stock
237.5
3.
Total Gold Holdings of the United States
September 30, 1943 December 31, 1943
Treasury Gold Stock
$22,175,033,177
$21,937,509,984
Stabilization Fund Gold
7,448,075
42,907,236
Total
$22,182,481,252
$21,980,417,220
The decrease in the gold holdings of the Treasury and the
Stabilization Fund during this quarter was 202.1 million.
Regraded Unclassified
372
NOT TO BE RE-TRANSMITTED
COPY NO.
/
BRITISH MOST SECRET
U.S. SECRET
OPTEL No. 38
Information received up to 10 a.m., 2nd February,
1944.
1. MILITARY
ITALY. No further information received.
RUSSIA. Russians have captured KINGISEPF and
NOVINKA, 34 miles S.W. LYUBAN, on LEVINGRAD - DNO railway
and are also within 7 miles of LUGA.
2. AIR OPERATIONS
WESTERN FRONT. 1st. Beaufighters sank a Mine-
sweeper, set fire to a 5,000 ton ship, and damaged an escort
vessel off NORWAY.
lst/2nd. Mosquitoes were despatched: BERLIN, 12,
(one missing); KREFELD, 3; AACHEN, 3; Intruders 3.
ITALY. 30th. 215 escorted Fortresses and
Liberators dropped 258 tons on four airfields in 1.3. ITALY
with good results. 22 enemy aircraft reported destroyed on
ground and combat casualties 73, 12, 6, for loss of five
bombers and three fighters. In battle area 105 Medium, Light
and Fighter Bombers attacked enemy communications and gun
positions.
ALBANIA. 30th. Liberators dropped 70 tons on
Radar Station at FIER, north of VALONA.
TREASURY DEPARTMENT
1944 FEB 3 PM 2 13
Regraded Unclassified