Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
28277541
label
Volume 760, August 1 – August 3, 1944
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
28277541
sourceUrl
contentType
document
title
Volume 760, August 1 – August 3, 1944
citationUrl
collections
Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
28277541
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
8e94f8de2095b418
ocrText
DIARY
Book 760
August 1-3, 1944
Regraded Unclassified
- A -
Book Page
Atcheson, Frederick R.
See Post-War Planning: Surplus Property, Disposal of
- C -
Chesapeake & Potomac Telephone Company
Federal Government rate reduction: See Olrich and
Mack memoranda - 8/1/44
760
27.28
China
Communist-Kuomintang relations: Behind-the-scenes
developments reported by Friedman - 8/2/44
131
Foreign Funds Control transactions discussed in Treasury
cable to Friedman 8/2/44
134
Contract Settlement, Office of
See Office of Contract Settlement
- F -
Financing, Government
War Savings Bonds
5th War Loan Drive
"Thank you" notes to radio, newspapers, outdoor
advertisers, etc. - 8/1/44
1,etc.
Total figures reported to FDR - 8/2/44
94
a) FDR's congratulatory reply - 8/3/44
166
1) Explanation of why it was never published -
8/18/44: See Book 763, page 232
Gamble thanked personally and publicly by HMJr -
8/5/44: Book 761, pages 54,55
Foley, Edward H., Jr. - Colonel
Return to United States from Italy discussed in
HMJr-Foley correspondence - 8/3/44
167
- H - -
Hilton, Homer
See Post-War Planning: Surplus Property, Disposal of
Hinckley, Robert H.
See Office of Contract Settlement
- L -
Lend-Lease
Weekly report - 8/1/44
30
If
#
- 8/9/44: See Book 761. page 280
.
#
- 8/17/44: Book 763, page 246
.
-
- 8/24/44: Book 765, page 146
If
is
- 8/29/44: Book 767, page 97
United Kingdom
Gold and dollar holdings as of June 30, 1944 8/1/44
32
Federal Reserve Bank of New York statement showing
8/1/44 dollar disbursements, week ending July 26, 1944 -
33
Regraded Unclassified
- L- - (Continued)
Book Page
Lend-Lease (Continued)
United Kingdom (Continued)
Aircraft flight delivery as at July 31, 1944 -
British Air Commission report - 8/3/44
760
216
- o -
Office of Contract Settlement
Contract Settlement Act of 1944 digest by Hinckley -
8/3/44
178
Advisory Committee on Statistics, Records, etc. : Haas
(Division of Research and Statistics) and Sims, W. J.
(Office of Surplus Property, Procurement Division), to
represent Treasury - 8/25/44: See Book 766, page 98
- P -
Phillips, Edgar P.
See Post-War Planning: Surplus Property, Disposal of
Post-War Planning
Bretton Woods Monetary Conference
London press reports summarized:
8/1/44
38
8/5/44: See Book 761, pages 119,278,348
8/23/44: Book 765, pages 90,187
8/26/44: Book 766, page 199
8/31/44: Book 767. page 63
U.S.S.R. thanked for increasing subscription - 8/2/44.
96
Surplus Property, Disposal of
System of recording discussed in Olrich memorandum -
8/1/44
29
(See also Book 761, page 236; and Book 767, page 89)
25 largest classes - reports as of July 15 by Olrich -
8/2/44
101
Special items valued in excess of $50,000 -
report as of July 31 - 8/2/44
112
#
il # August 14 8/15/44: Book 762. page 137
If
#
# August 28 - 8/29/44: Book 767, page 68
Hilton, Homer: Experience record - - 8/3/44
174
Deficiency appropriation discussed in Olrich memorandum -
8/3/44
177
Atcheson, Frederick R.: Experience record - 8/7/44:
Book 761, page 216
Phillips, Edgar P.: Experience record - 8/21/44:
Book 764, page 194
Potomac Electric Power Company
Federal Government rate case decided in favor of
Government - O'Connell memorandum - 8/1/44
26
Public Utilities
Electric Light and Telephone Rates: For reduction appeal
by Federal Government see Potomac Electric Power Company
and Chesapeake & Potomac Telephone Company
Regraded Unclassified
- S -
Book Page
Surplus Property, Disposal of
See Post-War Planning
- U -
U.S.S.R.
See Post-War Planning: Bretton Woods Monetary Conference
- W -
War Refugee Board
Report for week ending
July 22, 1944 - 8/1/44
760
55
If 29, 1944 - 8/7/44: See Book 761, page 222
August 5, 1944 - 8/16/44: Book 763, page 32
"
12, 1944 - 8/23/44: Book 766, page 122
If
19, 1944 - 8/28/44: Book 767, page 35
If
26, 1944 - 9/4/44: Book 768, page 241
Regraded Unclassified
1
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE August 1, 1944
TO: Mr. Gamble
FROM: Mr. Lane
Here are the Secretary's "thank you" letters I spoke to you about
this morning which he has sent out at the end of each previous
Drive to the following:
Ad Council
--
Harold Thomas
Y & R
--
Larmon
Ruthrauff & Ryan
--
Grady
Erwin, Wasey
--
Williams
G. M. Basford
--
Wensley
Albert Frank-
Guenther Law
--
Corrigan
Newspapers
:
Tripp
Magazines
--
Warner
Outdoor
--
Fulton
Advertisers
--
West (ANA)
Agencies
--
Gamble (4 A's)
Radio
N. A. B.
--
Ryan
CBS
--
Kesten
NBC
--
Trammel
Blue
--
LaRoche
MBS
--
McClintock
The Frank Tripp letter should be returned here after being signed;
the rest can be sent directly.
Regraded Unclassified
miss Chauncen
2t
August 2, 1944
Dear Mr. Harmon:
Through your personal efforts as
Executive Vice-Chairman of the War
Activities Committee, the work of your
organization with the War Finance Division
has resulted in a closely coordinated
program for war financing. I want you to
know that I personally appreciate your
part in this program and I look forward
to the continuation of the pleasant relation-
ship existing between our two organizations.
Sincerely,
Mr. Francis Harmon
c/o War Activities Committee
1501 Broadway
New York, N. Y.
Typed 7/28/44
CFL:mf
Regraded Unclassified
mise Channely 3
August 2, 1944
Dear Mr. O'Donnell:
Under your fine leadership the Motion Picture
Industry has again distinguished itself in service
to the War Finance Program of our government. The
outstanding results of your Fifth War Loan Drive
bespeak the thorough planning and vigorous adminis-
tration given to it by you and your associates of
the War Activities Committee.
May I personally express to you the appre-
ciation of the Treasury Department for the inval-
uable service rendered in your capacity as National
Chairman.
We realize the personal contribution which
this job involves. We know something of the time
and energy required to do it. Your accomplishments
were inspiring to all of us, and Ted Gamble joins
me in this expression of our gratitude.
Sincerely,
Mr. R. J. O'Donnell
National Chairman
c/o Interstate Circuit Inc.
Majestic Theatre Building
Dallas, Texas
Typed 7/28/44
CFL:mf
Regraded Unclassified
miss Channey 4
August 2, 1944
Dear Mr. Lee:
It is my privilege to convey to you the
appreciation of the Treasury Department for your
tireless efforts in our War Finance Program. In
your capacity as Special Consultant, you have made
a valuable contribution to the success of our
Program generally and particularly in the Fourth
and Fifth War Loans.
The War Finance activities of the Motion
Picture Industry have been outstanding. In helping
to shape these campaigns and in representing that
industry here on Ted Gamble's staff, you have
brought its far-reaching operations in splendid
harmony with the work of our own organisation.
This has been & real service to your govern-
ment and you can feel a keen sense of satisfaction
in it.
Sincerely,
Mr. Claude Lee
Consultant to the
Treasury Department
c/o Paramount Pictures Inc.
1501 Broadway
New York, N. Y.
Typed 7/28/44
CFL:mf
Regraded Unclassified
miss Chauncey 5
August 2, 1944
Dear Mr. Friedl:
The Motion Picture Industry in the
Fifth War Loan has again distinguished
itself. The effectiveness of the thorough
planning and vigorous administration given
by you and your associates of the War
Activities Committees is reflected in the
outstanding results of your Fifth War Loan
Drive.
I want you to know that your inval-
uable service as Campaign Director of this
Drive is deeply appreciated. Your accomplish-
ments are an inspiration to all of us, and
Ted Gamble joins me in this expression of
gratitude.
Sincerely,
Mr. John J. Friedl
Minnesota Amusement Company
17 North 6th Street
Minneapolis, Minnesota
Typed 7/28/44
CFL:mf
Regraded Unclassified
miss miss bhaurely 6
August 2, 1944
Dear Mr. Kennedy:
The Motion Picture Industry in the
Fifth War Loan has again distinguished itself.
The effectiveness of the thorough planning
and vigorous administration given by you and
your associates of the War Activities Com-
mittees is reflected in the outstanding
results of your Fifth War Loan Drive.
I want you to know that your inval-
uable service as National Vice-Chairman of
this Drive is deeply appreciated. Your
accomplishments are an inspiration to all
of us, and Ted Gamble joins me in this
expression of gratitude.
Sincerely,
Mr. Richard M. Kennedy
Alabama Theatre
Birmingham, Alabama
Typed 7/28/44
CFL:mf
Regraded Unclassified
7
August 2, 1944
Dear Mr. Balaban:
In view of the services rendered our War
Finance Program by your associate, Mr. Claude Lee, I
wish to express to you our appreciation that he has been
available to us through the cooperation of your company.
In representing your industry in our War Loan
operations, Mr. Lee has been indispensable in coordinating
your activities with our own. He has brought to the job
a combination of tireless energy and resourcefulness
that has meant much in the task confronting our War Finance
Division.
His personal attitude has won him many friends
in the various departments in Washington with whom he
has had to deal and we enjoy having him with us.
Ted Gamble, National Director of War Finance
joins me in this expression of gratitude to you and
Mr. Lee.
Sincerely,
Mr. Barney Balaban
President
Paramount Pictures Inc.
1501 Broadway
New York, N. Y,
CFL:mf
Typed 7/28/44
Regraded Unclassified
miss Thanney 8
August 2, 1944
Dear Mr. Depinet:
My attention has been called to the manner
in which you have 80 greatly implemented the
outstanding work of the Motion Picture Industry
in our War Finance Program.
The resources and manpower of your industry
have proved effective forces in the success of
our War Bond Campaigns, and your contribution
in the Fifth War Loan was invaluable to us.
As National Distributor Chairman, you have
personally brought new strength to the Drives
and new laurels to your industry.
Ted Gamble joins me in this expression of
gratitude.
Sincerely,
Mr. Red E. Depinet
Vice-President
RKO Radio Pictures Inc.
1270 Sixth Avenue
New York, N. Y.
Typed 7/28/44
CFL:mf
Regraded Unclassified
9
August 2, 1944
Dear Mr. Fabian:
Through your personal efforts as
Chairman of the Theatre Division, the
work of the War Activities Committee
with the War Finance Division has resulted
in a closely coordinated program for war
financing.
I want you to know that the Treasury
Department appreciates your part in this
program, and that I look forward to the
continuation of the pleasant and very help-
ful relationship between our organizations.
Sincerely,
Mr. S1 Fabian
c/o War Activities Committee
1501 Broadway
New York, New York
Typed 7 31/44
JMM:mdt
Regraded Unclassified
10
August 2, 1944
Dear Mr. Williams:
Your splendid cooperation in creating
effective 5th War Loan advertisements has been
of inestimable value in bringing the 5th War
Loan drive to its successful conclusion.
For this, and for your notable contri-
butions to the important farm advertising in
the interim periods, please accept, on behalf
of yourself and all concerned, my sincere thanks
and appreciation.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Howard D. Williams
Vice President
Erwin, Wasey & Co., Inc.
420 Lexington Avenue
New York, New York
Regraded Unclassified
11
August 2, 1944
Dear Mr. West:
The Fifth war Loan Drive, which has just
come to an end, has exceeded a goal far beyond
that which the Treasury Department's original
estimates had set for it.
I am well aware of the essential and out-
standing part which private advertisers throughout
the country have played in supporting this most
necessary program.
It is with sincere pleasure, therefore,
that I express to you, and through you to all
advertisers, the appreciation of the Treasury
Department for your consistently generous
cooperation.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Paul West
President
Association of
National Advertisers
330 West 42nd Street
New York, New York
SK:bak
12
August 2, 1944
Dear Mr. Wensley:
Please accept my sincere appreciation for
the excellent part played by you and your agency in
preparing advertisements for use in the 5th War Loan.
The outstanding success of the 5th War Loan
campaign was due in no small measure to the sense of
awareness of the drive and its meaning which you
helped to create in Americans everywhere.
For this, and for your generous cooperation
in the interim periods, you are to be songratulated.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Roger L. Wensley
President
G. M. Basford Company
60 East 42nd Street
New York, New York
SK1bak
Regraded Unclassified
13
August 2, 1944
Dear Mr. Warner:
The periodicals of America -- the genoral magazines,
business and trade papers, and farm publications -- have
defined once again, during the Fifth War Loan the significance
of their contribution.
The continued and consistent impact of War Bond
advertising messages in more than 1,300 publications, and
the unique War Bond covers, colorfully displayed by more
than 2,000 publications during the loan campaign, attest to
the patriotism and generosity of these publishors.
The general magazines have successfully stressed to
their millions of family readers the urgent necessity of
voluntary financing of this most costly conflict. The busi-
ness and trade papers, from the very inception of our program,
have guided the executives of business and industry in the
esteblishment of Payroll Sevings and retail sales. The form
publications have demonstrated their power in the important
rural market.
For the publications' continuing War Bond cooperation,
every American is deeply indebted. Please extend my deep
personal appreciation and that of the Treasury Department to
the publishers for their effective assistance.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. William B. Warner
President
National Publishers
Association
230 Park Avenue
New York, New York
Regraded Unclassified
14
August 2, 1944.
Dear Mr. Trammell:
Now that the 5th War Loan Drive
has drawn to a close I would like you
and your associates to know how much we
appreciate your efforts. The special
programs arranged by the National Broad-
casting Company staff played an important
part in enabling us to exceed our initial
quota of sixteen billion dollars.
Your countrymen will not forget NBC's
contribution to the war effort.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Niles Trammell
President
National Broadoasting Company
30 Rockefeller Plaza
New York, New York.
rja/it
Regraded Unclassified
15
August 2, 1944
Dear Mr. Thomas:
It is with deep appreciation that
I compliment you, and, through you, the various
affiliates which compose the War Advertising
Council, for the splendid cooperation you have
given to the recent 5th War Loan Drive.
The importance of a continued,
sustained endeavor in behalf of the War Bond
program cannot be over-estimated. The war
Advertising Council has been consistent and
effective in its support. For this, my sincere
thanks and appreciation.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Harold Thomas
President
War Advertising Council
60 East 42nd Street
New York, New York
SK:bak
Regraded Unclassified
16
August 2, 1944
Dear Mr. Ryan:
In your capacity as the representative of the
radio industry, please accept the sincere thanks of
the Treasury Department and the people of America
for the time and talent placed at our disposal in
the Fifth War Loan by the four networks and the 912
radio stations throughout the country.
Radio's contribution in terms of money has been
most outstanding, but radio's contribution in terms
of our success and the country's welfare 1s beyond
appraisal. Without it we could not have raised the
tremendous sum necessary to pursue the war.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Harold Ryan
President
National Association
of Broudcasters
1760 N Street, N. We
Washington, D. C.
3K:bak
Regraded Unclassified
17
August 2, 1944.
Dear Mr. McClintock:
The friendly cooperation of
you and your associates at the
Mutual Broadcasting System has been
most helpful to us in the 5th War
Loan Drive.
You have made an effective
contribution to the war effort in
aiding us to exceed our original
quota.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Miller McClintock
President
Mutual Broadcasting System
1440 Broadway
New York, New York.
rja/lt
Regraded Unclassified
18
August 2, 1944.
Dear Mr. LaRoche:
Speaking in behalf not only of the
Treasury Department but of your countrymen,
I would like to express to you our
appreciation of the support the Blue
Network gave to the 5th War Loan Drive.
The special programs produced by your
staff added to the impetus of War Bond
sales and have played an important part in
putting us over the top.
Sincerely,
(Signed) Honry- Morgenthau, Jr.
Mr. Chester J. LaRoche
Chairman of Executive Committee
Blue Network Inc.,
30 Rockefeller Plaza
New York, New York.
rjs/lt
Regraded Unclassified
19
August 2, 1944
Dear Mr. Larmon:
Please accept my sincere appreciation
for the splendid role you and your organization
played in helping to make the Fifth War Loan
drive a success.
The notable series of War Bond adver-
tisements which were prepared by the Young &
Rubicam agency, both for our bond drives and
for the important interim periods, have done
much to forward the War Finance program among
Americans of all stations in life. You and all
concerned are to be congratulated on a job well
done.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Sigurd S. Larmon
President
Young & Rubioam, Inc.
285 Madison Avenue
New York, New York
SK:bak
Regraded Unclassified
20
August 2, 1944.
Dear Mr. Kesten:
The cooperative spirit shown by
you and your associates of the Columbia
Broadcasting System should not pass un-
noticed now that the 5th War Loan Drive
is over.
Our success in going well over our
original quota is due in no small part
to the special programs arranged by your
staff.
I would like you to feel that the
Columbia Broadoasting System has been of
great service to the country.
Sincerely,
(Signed) Honry Morgenthau, Jr.
Mr. Paul W. Kesten
Vice President
Columbia Broadoasting System
485 Madison Avenue
New York, New York.
530/18
Regraded Unclassified
21
August 2, 1944
Dear Mr. Grady:
with the success of the 5th War Loan,
I want to take this opportunity of thanking you
and all members of your organization who contri-
buted their time and talents to create the series
of 5th har Loan advertisements produced by your
agency in cooperation with the War Advertising
Council.
There is no question but what your
contribution to the Drive played a major part
in its success. For this and for your equally
splendid cooperation in past war loan drives,
please accept my sincere gratitude and appre-
ciation.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. E. J. Grady
Executive Vice President
Ruthrauff & Ryan, Inc.
405 Lexington Avenue
New York, New York
SK:bak
Regraded Unclassified
22
August 2, 1944
Dear Mr. Gamble:
Please accept my sincere appreciation for
the splendid part played by the advertising
agencies of America in helping to make the Fifth
War Loan such an outstanding success.
This patriotic cooperation in publicizing
the sale of War Bonds was an important factor in
the success of the campaign.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Frederic R. Gamble
American Association of
Advertising Agencies
420 Lexington Avenue
New York, New York
SK:bak
Regraded Unclassified
23
August 2, 1944
Dear Mr. Fulton:
I want to thank you again, and also the
members of the Outdoor Advertising Industry,
for the generous support you gave us during
the recent Fifth War Loan.
The achievement of our goals was due in
no small part to the patriotic efforts of
this effective medium in helping to publicize
the Fifth War Loan campaign.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. K. H. Fulton
President
Outdoor Advertising
Association of America
60 East 42nd Street
New York, New York
SK:bak
Regraded Unclassified
24
August 2, 1944
Dear Mr. Corrigan:
Now that the Fifth War Loan has
established another milestone on the road
to victory, I want to express to you and to
the members of your organization who had a
part in planning Fifth War Loan advertising
my sincere appreciation for the splendid
role you played in the success of this highly
important drive.
There is no question but the advertise-
ments you created inspired millions of patriotic
Americans with the sense of urgency and vital
importance of buying extra War Bonds in the
Fifth War Loan.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Emmett Corrigan
Chairman of the Board
Albert Frank-Guenther Law, Inc.
131 Cedar Street
New York, New York
SK:bak
Regraded Unclassified
TRANSMITTED TO TOM LANE
we
25
August 2, 1944
Dear Mr. Tripp:
Will you please convey to the newspaper pub-
lishers of America my sincere appreciation for the out-
standing contribution they have made to the success of
the Fifth War Loan drive.
In spite of difficult paper shortages, newspapers
gave greater advertising and editorial support to the Fifth
Drive than any previous one.
The newspaper advertising performance has been
truly outstanding, and I hope you will ask all publishers
to express our thanks to the patriotic sponsors who have
so unselfishly supported this vital war finanoing effort.
Newspapers have every right to be proud of the
part they are playing in this financing program -- and the
Nation can be thankful for a free press, which is serving
our country so well and unselfishly.
We acknowledge with gratitude the splendid
assistance of the Allied Newspaper Council and your fellow
publishers.
Sincerely,
(Signed) Henry Morgenthau, Jr.
Mr. Frank E. Tripp
Chairman
Allied Newspaper Council
Washington, D. C.
SK:bak
Regraded Unclassified
26
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE AUG 11944
TO
Secretary Morgenthau
FROM Joseph J. O'Connell, Jr.
FOR YOUR INFORMATION
sucks 612
You may recall that early in 1943 you approved
having the Procurement Division intervene in a rate case
before the Public Utilities Commission of the District
of Columbia, in an effort to force a reduction in rates.
The struggle has been going on ever since, and as
you may have noticed we have, during that time, received
at least our share of brickbats from the local press, as
well as from the Commission itself.
Particularly in view of the "kicking around" our
people got during the battle, it is with a great deal of
pleasure that I am able to report that last week the
Public Utilities Commission handed down & decision which
supports most, if not all of the contentions we have been
making, and provides for a yearly reduction in public
utility rates in excess of $1,000,000.
Since the Government is the largest single consumer
of electric energy in the District, paying in excess of
$5,000,000 yearly for current, the victory is one which
means a saving to the Government of at least $300,000 a
year.
Regraded Unclassified
27
OFFICE
OF
FORVICTORY
TREASURY DEPARTMENT
BUY
UNITED
STATES
WAR
WASHINGTON 25
BONDS
AND
STAMPS
THE
SECRETARY
August 1, 1944
MEMORANDUM TO THE SECRETARY
I am attaching a memorandum that
was prepared by Mr. Mack, at my suggestion,
in which he sets forth that as a result of
discussions between his office and the tele-
phone company, they have agreed to a volun-
tary reduction of approximately $200,000
annually and the benefits of this saving will
extend to renewal contracts.
As a result of hearings before the
Public Utilities Commission, the Potomac Electric
Power Company was ordered to reduce their
rates, which will accomplish an annual reduc-
tion of electric energy cost to the Federal
Government in the District of Columbia of
$1,000,000 per annum.
Olrich
Assistant to the Secretary
Attachment
Regraded Unclassified
28
FORVICTORY
BUY
TREASURY DEPARTMENT
UNITED
***788
WAR
BONDS
PROCUREMENT DIVISION
...
STAMPS
WASHINGTON 25
OFFICE OF THE DIRECTOR
July 28, 1944
MEMORANDUM TO THE SECRETARY:
During the late summer of 1942 preliminary work and
investigation conducted by this office indicated that in
certain respects charges made to the Government for
telephone services and electric energy could be profitably
reviewed.
As a result of discussions with the Chesapeake and
Potomac Telephone Company, they agreed to a voluntary
reduction of approximately $200,000 annually, and the
benefit of this savings will extend to renewal contracts.
In the case of the Potomac Electric Power Company, it
was not possible to effect voluntary reductions, and it
became necessary for the Procurement Division to intervene
in the rate hearings held in February and March 1943 before
the Public Utilities Commission; at which time Procurement
was joined by the Office of Price Administration, and shortly
before the convening of the hearings the Federal Works Agency
also intervened.
The decision of the Commission on July 22, 1944,
achieved largely due to the action initiated by the Procure-
ment Division, accomplished an ennual reduction of electric
energy costs in excess of $1,000,000, the writing out of the
rate base of some $5,800,000 in water, and a reduction in
such base undepreciated from $105,000,000 in 1943 to
approximately $81,000,000 undepreciated in 1944. Under our
contracts, the Federal agencies purchase electric energy in
excess of $5,000,000 out of an approximate gross of $22,000,000
annually.
Mr. Thurman Hill, Chief Counsel, and Mr. A. J. Swanick,
of the Legal Division, ably represented the Procurement
Division in this matter, and Mr. Robert LeFevre, Assistant to
the Director, cooperated with them in the development of the
evidence.
Clirton E! Mack
Director of Procurement
Regraded
29
OFFICE
OF
PO VICTORY
TREASURY DEPARTMENT
BUY
UNITED
STATES
WAR
WASHINGTON 25
BONDS
AND
THE
SECRETARY
STAMPS
August 1, 1944
MEMORANDUM TO THE SECRETARY
To insure an adequate system of recording surplus
property in Treasury, I asked the Comptrollers' Institute
(one of the country's most important professional business
organizations) to form a committee to review our I.B. M.
installation.
The committee was made up of: L. M. Nichols, Comp-
troller, General Electric Supply Corporation; Mr. E. B.
Miller, Comptroller, Yardley, Inc.; Captain F. M. Farwell,
Ordnance; Lt. Comdr. Ludlow, Navy; Lt. E. J. Livesey, Navy;
Lt. (jg) Coxon, Navy; the I.B.M. was represented by Mr.
R. A. Soderberg; and Treasury by Mr. F. R. Atcheson and Mr.
W. J. Sims.
The following is their report:
The basic principles upon which the surplus property
accounting procedure was established, were thoroughly discussed.
Attention was given to several of the technical phases, par-
ticularly the problem of classification and item identifica-
tion. This latter problem was recognized as the most diffi-
cult, regardless of whether the procedure provided punch
cards or other accounting machinery. With a reservation in
this direction, the procedure received general approval of
those present.
The conference terminated at 4:30 P.M. with the under-
standing that each group would make a more detailed study of
the procedures set forth in the Surplus Property Accounting
Manual (copies of which were supplied), and submit recommen-
dations or suggestions accordingly.
Elaud Olrich
Assistant to the Secretary
Regraded Unclassified
30
AVICTORY
TREASURY DEPARTMENT
BUY
UNITED
STATES
WAR
BONDS
PROCUREMENT DIVISION
AND
STAMPS
OFFICE OF THE DIRECTOR
WASHINGTON 25
August 1, 1944
SECRET
MEMORANDUM TO THE SECRETARY:
There is submitted herewith the weekly
report of Lend-Lease purchases.
A requisition has been received for
10,080,000 lbs. of Magnesium Alloy Ingot
costing approximately $2,409,120 for the
production of incendiary bombs in the
United Kingdom.
Director of Procurement
You Clifton E. Mack
&
Regraded Unclassified
LEND-LEASE
TREASURY DEPARTMENT, PROCUREMENT DIVISION
STATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND
DELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS
AS OF JULY 26, 1944
(In Millions of Dollars)
Administrative
Miscellaneous &
Total
U.K.
Russia
China
Expenses
Undistributed
Allocations
$5489.2
$2627.0
$2257.3
$133.9
$15.9
$455.1
(5479.2)
(2627.0)
(2257.3)
(133.9)
(15.9)
(445.1)
Requisitions
$ 140.9
$ 29.6
$ 64.1
$ .3
-
$ 46.9
in Purchase
( 128.6)
( 28.5)
( 54.1)
( .3)
-
( 45.7)
Requisitions not
$ 116.8
$ 35.1
$ 68.3
$ .1
-
$ 13.3
Cleared by W. P. B.
( 114.6)
( 30.7)
( 67.9)
( .1)
-
( 15.9)
Obligations
$3822.1
$1945.0
$1541.6
$ 62.8
$12.8
$259.9
(Purchases)
(3779.7)
(1938.3)
(1514.2)
( 62.8)
(12.7)
(251.7)
Deliveries to Foreign
$2211.7
$1382.9
$ 758.8
$ 24.0
-
$ 46.0
Governments at U. S.
(2200.7)
(1380.0)
( 751.8)
( 23.8)
-
( 45.1)
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 July 19, 1944.
31
Regraded Unclassified
UK-801
UNITED KINGDOM TREASURY DELEGATION
BOX 680
BENJAMIN FRANKLIN STATION
WASHINGTON. D. c.
TELEPHONE EXECUTIVE 2020
REFERENCE:
4-A
1st August 1944.
Dear Dr. White:
I write to inform you that the figures
for our gold and dollar holdings in million dollars
as at June 30th, 1944 are as follows:
Gold
1,408
Less Gold Liabilities
323
Net Gold
1,085
Official Dollar Balances
763
Less Dollar Liabilities
244
Net Dollars
519
Net Gold and Dollars
1,604
Yours sincerely,
Thlee
F.G. Lee.
Dr. H.D. White,
Assistant to the Secretary,
United States Treasury,
Washington, D. C.
Regraded Unclassified
33
FEDERAL RESERVE BANK
OF NEW YORK
August 1, 1944.
CONFIDENTIAL
Dear Mr. Secretary:
Attention: Mr. H. D. White
I am enclosing our compilation for the week ended
July 26, 1944, showing dollar disbursements out of the British
Empire and French accounts at this bank and the means by which
these expenditures were financed.
Very truly yours,
/s/ H. L. Sanford
H. L. Sanford,
Assistant Vice President.
The Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington 25, D.C.
Enc.
COPY
Regraded Unclassified
34
TREASURY DEPARTMENT
OFFICE OF THE SECRETARY
August 2, 1944
CONFIDENTIAL
Received this date from the Federal Reserve
Bank of New York, for the confidential information
of the Secretary of the Treasury, compilation for
the week ended July 26, 1944, showing dollar dis-
bursements out of the British Empire and French
accounts at the Federal Reserve Bank of New York
and the means by which these expenditures were financed.
EMB
Regraded Unclassified
ANALYSIS OF JRITISH AND FRENCH LCCOUNTS
(In Hillions of Dollars)
Strictly
Week
Ended
July 26, 1944.
Confidential.
BANK OF ENCLAND (BRITTSR government)
BANK OF FRANCE
PERIOD
DEBITS
GREDITS
Net Incr. (+)
Cor't
Irensfers
to
Proceeds Sales of of
Transfers
Net, Incr. (+)
depends-
Official
Other
or Decr. (-)
Total
Total
Total
Official
or Decr. (-)
terps
Canadian
Other
Total
(Orricial)
Australian
Credits
in 3 Funds
Debits
Gredits
in 0 Funds
Debite
(a)
Account
Debita
Credits
Gold
(b)
Account
(c)
(d)
(e)
(e)
(d)
Piret year. of my (a)
1,793.2
605,6
20,9
1,166,7
1,828,2
1,356.1
52.0
3.9
416.2
+ 35.0
866,3(f)
1,095,3(f)
+ 299.0
far period through
1940
2,782.3
1,425.6
20.9
1,335.8
2,793,1
2,109.5
108,0
14.5
561.1
+ 10.8
878.3
1,098.4
+ 220.1
Second year of warth
2,203.0
1,792.2
3.4
407.4
2,189,8
1,193.7
274.0
16.7
705.4
- 13,2
38.9
8,8
- 30,1
flord year. of vary (1)
1,235.6
904.8
77
223.1
1,361.5
21,8
5.5
57.4
1,276,8
+ 125,9
18,5
4.4
- 14,1
Fourth year of 51
16.0
312.7
170.4
280.9
1,072.3
-
0.5
155.1
916.7
+ 308,3
10.3
1,0
- 9,3
1943
September
49.4
16.8
10.6
22.0
86.2
-
-
15.0
71,2
+ 36.8
-
-
-
October
36.2
16.0
-
22,2
115.4
-
-
40.5
74.9
+ 77.2
-
-
-
November
69.9
43.4
5.9
17.6
89.0
-
-
3.5
85.5
+ 23,1
-
-
-
98.1
16.3
-
51.8
134.5
-
-
36.5
98,0
+ 36.4
-
-
-
January
22.2
14.6
12,0
127.5
-
-
1,0
126.5
+ 02.7
-
-
I
february
143.8
14.3
2.1
127.4
144.5
-
-
29.0
115.5
+ 0.7
-
-
-
152.9
71.1
12.5
69.3
133.3
-
-
24.5
108.8
- 19.6
-
-
-
134.8
14.9
-
119.9
122.2
-
-
27.5
94.7
- 12.6
-
-
-
125.1
28&8
8.1
88,2
164.7
-
-
37.0
127,7
+ 39.6
-
-
-
Jane
101.9
24.1
-
71.8
95.7
-
-
28.0
67.7
- 6.2
-
-
-
July
August
Week Ended
July 5, 1944.
72.8
5.7
0.2
66.9
6.7
-
-
1.0
5.7
- 66.1
-
-
-
July 12, 1944.
6.7
2.1
-
4.6
41.6
-
-
10.0
31.6
+ 34.9
-
-
-
July 19, 1944.
12.3
4.7
-
7.6
12.7
-
-
-
12.7
+ 0.4
-
I
July 26, 1944.
61. 4.
23
7al
52.0(1)
10.3(k)
-
-
-
10.3 (k)
- 51.1
-
-
-
Average Weekly Expenditures Since Outbreak of Jar
See attached sheet for footnotes.
France (through June 19, 1940) $19.6 million
England (through June 19, 1940) $27.6 million
England (through June 20, 1940 to Parch 12, 1941) 354.9 million
England (sisse earch 12, 1941) $21.6 million
Regraded Unclassified
1) Includes payments for account of British Ministry of Supply Mission, British Supply Board, Ministry of Supply Timber
Control, and Ministry of Shipping.
(b) Estimated figures based on transfers from the New York Agency of the Bank of Montreal, which apparently represent the
procests of official British sales of American securities, including those effected through direct negotiation. In addition
to the official colling, substantial liquidation of securities for private British account occurred, particularly during the
early months of the s, although the receipt of the proceeds at this Bank cannot be identified with any accuracy, According
to date supplied by the with Treasury and released by Secretary Morgenthau, total official and private British liquidation
of our securities through December, 1940 amounted to $334 million.
(e) Includes about 885 million received during October, 1939 from the accounts of British authorized banks with New York banks,
premably reflecting the requisitioning of private dollar balances. Other large transfers from such accounts since October,
1939 apparently represent current acquisitions of proceeds of exports from the sterling area and other accruing dollar
reselpte, See (k) balon,
(d) Reflects net change is all dollar holdings payable on detand or saturing in one year,
(a) Yet breakdom w types of debito and credits in tabalations prior to March 10, 1943,
(f) Idjusted to distribute - effect of S20 million paid out on June 26, 1940 and returned the following day.
(g) For mothly brothim m tabulations prior to April 23, 1941.
(b) for notify broaklyne ⑉ tabulations prior to October 8, 1941,
1) for acalthly breaklesm see tabelations prior to Ostober 14, 1962.
($) for anthly breakfour - tabulations prior to September 29, 1943.
(k) Individos $ 5.1 million spparently representing current and accumulated dollar proceeds of sterling area services and
arrabandise exports, and $3.4 million transferred from New York accounts of the State Bank of the U. S. S. R.
(1) of which $50.1 million represents cost of gold purchased for export.
Regraded Unclassified
ANALYSIS OF CANADIAN AND AUSTRALIAN ACCOUNTS
(In Millions of Dollars)
Strickly
Tieek Ended July 26, 1944.
Confidential
BANK
OF
CANADA (and Canadian Government)
COLD ONNEALTH BANK OF AUSTRALIA (and Australian Government)
DEBITS
CREDITS
DEBITS
CREDITS
Transfers
Transfers from Official
Transfers
to
Proceeds
British A/C
Net Incr.
to
Proceeda
Not Incr,
Official
of
(+) or
Official
of
(+) or
PERIOD
Total
British
Others
Total
Gold
For Own
For French
Other
Decr. (-)
Total
British
Other
Total
Gold
Other
Decr. (-)
Debits
A/C
Debits
Credits
Sales
A/C
A/C
Credits
in in $Runds(s)
Debits
A/C
Debits
Credits
Sales
Credits
in $Rinds (e)
First year of war (a)
323.0
16.6
306.4
504.7
412,7
20.9
38,7
32.4
181,7
31,2
3.9
27.3
36,1
30,0
6,1
+ 4.9
War period through
December, 1940
477.2
16.6
460.6
707.4
534.8
20.9
110.7
41.0
+ 230.2
57.9
14.5
43.4
62.4
50.1
12.3
+ 4.5
Second year of war(b)
460.4
-
460.4
462.0
246.2
3.4
123.9
88,5
+ 1.6
72.2
16.7
55.5
81.2
62.9
18.3
+ 9.0
Third year of war (c)
525.6
0.3
525.5
566.3
196.6
7.7
-
360.0
+ 40.5
107.2
57.4
49.6
112,2
17,2
95.0
- 5.0
Fourth year of war(d)
723.6
-
723.6
958,8
47.1
170.4
-
741.3
+ 235.2
197.0
155.1
41.9
200.4
-
200.4
+ 3.4
1943
1
September
47.2
-
47.2
70.1
-
10.6
-
59.5
+ 22,9
16.8
15.0
1.8
20.0
#
20.0
+ 3.2
October
32.1
-
32.1
71.3
-
-
-
71.3
+ 39,2
42.8
40.5
2.3
26.5
-
26.5
- 16.3
November
15,4
0,1
15,3
95.1
-
5.9
-
89.2
+ 79.7
6.6
3.5
3.1
18,2
-
18.2
+ 11,6
December
146.8
0,3
146.5
55.1
-
-
-
55.1
- 91.7
39.7
36.5
3,2
27.0
-
27.0
- 12.7
1944
January
32.3
-
32.3
78.5
-
10,6
-
67.9
+ 46.2
6.0
1,0
5.0
11.3
-
11.3
+ 5.3
February
25.4
-
25.4
118.5
23,1
2,1
-
93.3
+ 93.1
31.3
29.0
2,3
28.6
-
28.6
- 2.7
March
30.3
0.5
29.8
68.6
15,0
12,5
-
61.1
+ 58.3
27.6
24.5
3.1
29.9
-
29.9
+ 2.3
April
183.6
-
183.6
96.7
-
-
-
96.7
- 86.9
29.5
27.5
2.0
39.4
-
a
154.2
-
154.2
86.3
-
8.1
39.4
+ 9.9
&
78.2
- 67.9
42.6
37.0
5.6
39.6
-
39.6
- 3,0
June
100.1
0.1
100.0
63.3
-
-
-
63.3
- 36.8
31.4
28.0
3.6
21.8
-
21.8
- 9,6
July
August
licok Ended
July 5, 1944.
67.5
-
67.5
26.7
-
0.2
-
26.5
- 40.8
3.0
1.0
2.0
13.5
-
July 12, 1944.
8.7
8.7
13.5
-
13.1
+ 10.5
-
-
-
13.1
+ 4,4
14.1
10.0
4.1
1.2
-
July 19, 1944,
4.2
-
4,2
6.6
1.2
6.6
- 12.9
-
-
-
+ 2.4
1.9
-
1.9
0.2
-
0.2
16.8(f)
- 1.7
July 26, 1944.
-
16.8
23.1(f)
-
7.1
-
16.0(g)
+ 6.3
2.1
-
2.1
3.3(h)
-
3.3(b)
+ 1.2
Average Teekly expenditures for
(a) For monthly breakdown see tabulations prior to April 23, 1941.
First year of war
6.2 million.
(b) For monthly breakdown see tabulations prior to October E, 1941.
Second year of war
8,9 million.
(c) For monthly breakdown see tabulations prior to October 14, 1942.
Third year of war
10.1 million,
(d) For monthly breakdown see tabulations prior to September 29, 1943.
Fourth year of war
13.9 million,
(e) Reflects anges in all dollar holdings payable on demand or esturing in one year.
Fifth year of war (through July 26, 1944.)
17.1 million,
(f) Does not reflect transactions in short term U. S. securities.
(g) Inçludes $ 8.7 million deposited by War Supplios, Ltd.
and $ 7.0 million received from New York account of Canadian Chartered Bank,
(h) Includes $3.0 million in cornection with the expenses of our arued forcos abroad.
Regraded Unclassified
Treasury Department
38
Division of Monetary Research
Date
August 1
1944
To:
Secretary Morgenthau
From:
Mr. White
Subject: Summary of the London Press Reports
of July 23 relating to the Bretton
Woods Conference. (London cable
5865, July 24, 1944)
The tenor of London press reports
of July 23 is indicated by the con-
cluding words of a Telegraph editorial,
"The pattern of things to come is
gradually taking shape. Bretton Woods
reflects at once the confidence of the
United Nations in victory and their
resolve to use it well."
Your statement at the close of
the conference received considerable
emphasis. Special interest was
apparent in your references to the
success of the conference, to the
significance of the Russian agreement
at the last moment to raise their
Bank subscription, and to the fact
that national delegations had not
lost sight of their particular
national interests. The Daily Herald
feels that your statement "seems to
suggest that Roosevelt will call for
changes in the United States tariff
policy."
DEPARTMENT
INCOMING
DIVISION OF
OF
COMMUNICATIONS
STATE
TELEGRAM
AND RECORDS
39
KEM-275
PLAIN
London
Dated July 24, 1944
Rec'd 8:56 p.m.
Secretary of State,
Washington.
DEPARTMENT OF STATE
DIVISION OF
5865, Twenty-fourth.
JUL 25 1244
FOR THE SECRETARIES OF STATE AND
AND provides
There follows a summary of the London press
reports of July 23 relating to the Bretton-Woods
Conference:
The SUNDAY TIMES carried a summary of the radio
address by Lord Keynes on the bank and mentioned
that Mr. White had delivered a radio address on the
fund. The TIMES also contained a discussion of Britain's
sterling balance problems by Norman Crump, city Editor,
which dealt with its significance in relation to the
fund and bank.
Crump's article opens by stating: "one point should
bE made clear about the matters which have bEEn under
discussion at the Bratton-Woods Conference. The object
of both the proposed International Monetary Fund and
the proposed
Regraded Unclassified
40
*2- #5865, July 24, from London.
the proposed World Bank is to give the world a fresh
start after the war. For this reason it is Essential
that neither should bE clogged with any legacy of inter-
national debts which may bE left behind by the war".
After some discussion of the problem of sterling
balances not directly related to the fund and the bank,
Mr. Crump continues by suggesting that the British
might wish to consider the conversion of some of its
sterling obligations into a loan from the bank thereby
permitting Britain's creditors to purchase capital
Equipment from anywhere in the world and substituting
long term debt for short term debt and a d Ebt to one
international institution in place of a multiplicity
of debts to particular countries. HE adds that this
would bE only a palliative, there being no single or
quick means of repaying Britain's obligations.
The REUTERS despatch in the SUNDAY OBSERVER
announced the publication of the draft of the fund
proposal and summarized the provisions of the draft
with reference to the gold subscription to the fund,
the imposition of "sanctions" for unauthorized changes
in the war values of currencies, and the conditions under
which the agreement shall COME into Effect. The report
concludes
Regraded Unclassified
41
-3- #5865, July 24, from London.
concludes by referring to Secretary Morgenthau's
statement to the Effect that the members of the
conference "had succeeded in their task of working
out methods to do away with the Economic Evils, the
competitive currency devaluation and destructive
impediments to trade, which preceeded the war".
Reynolds NEWS carried a summary of Lord Keynes
radio address,
The following press reports refer to articles
appearing in the London papers of July 24.
The LONDON TIMES carried a despatch from its
Washington correspondent on the conference, an
article-by-articla summary of the draft agreement
on the fund as released in London by the United
Nations Information Office, and a long Editorial on
"Bretton-Woods and after".
The despatch from the TIMES Washington correspondent
was devoted primarily to a summary of some of the
statements made by Secretary Morgenthau and Lord KEYNES
at the close of the conference. Regarding Russia's
agreement to raise its subscription to the bank the
article quotes Secretary Morgenthau that the action
was "fraught with more significance and more hopeful
meaning
Regraded Unclassified
42
-4- #5865, July 24, from London.
meaning to the future of the world than any which
those of us here have heard of so far". The correspondent
also states "Mr. Morgenthau said hE was certain that no
deletation had for a moment lost sight of particular
national interests, and added that the American
delegation had bEEn lat all times conscious of its
primary obligation, the protection of American
interests!"
Lord Keynes was reported to have said that no
conference in living memory had achieved "such a bulk
of lucid solid construction", and that although a
decisive point had been reached, it was "only a
beginning" and that the delegates would have to leave
Bretton-Woods as "missionaries". The correspondent
reports "he was hopeful that, when the critics and the
skeptics looked more closely, the plans would turn out
to bE so much better than they EXPECTED 'that the very
criticism which WE have suffered will turn things in
our favor!"
The correspondent notes that the two final articles
of the fund and the bank carry "general reservations"
which are interpreted to mEan that the proposals will
bE submitted to the various governments "without
recommendation
Regraded Unclassified
43
-5- #5865, July 24, from London.
recommendation for or against" them by the delegates
in the conference.
The TIMES Editorial comments on the outcome of
the conference as follows: "the recommendations of
the Experts at Bratton-Woods, after three WEEKS of
intensive deliberation, in favor of establishing two
powerful institutions for the world wide organization
of international money and investments open a new phase
in the collaboration of the United Nations".
After noting that the purpose of the fund is to
provide short term credits to "overcome temporary
difficulties arising out of the balance of payments
without resorting to restrictive monetary practices
injurious to trade" and of the bank to provide long
term credits for reconstruction and development, the
Editorial comments "the functions of the two institutions,
although different, are clearly complementary, the
distinction between short term and long term credits
itself being fluid. The fund, by establishing order
in the field of international Exchange rates, will
SErVE to facilitate the flow of international investments,
and the bank, by supplying nEEdy nations with inter-
national purchasing power, may serve to free the
resources
Regraded Unclassified
44
⑉6⑉ #5865, July 24, from London.
resources of the fund from abnormal strain.
The Editorial continues by stating that a promising
beginning has been made "that forty four nations,
welded together by common purposes in war, have been able
to agree on the desirability of setting up these two
novel institutions to Give unity to their purpose in
peace is a heartening achievement" EVEN though many
vital questions still appear to remain unanswered. The
next step, the Editorial states, is "to Ensure that
ultimate community of purpose--the Existence of which
is not in doubt-shall not bE frustrated by disagreement
on methods" and goes on to Emphasize the importance of
suitable internal policies in all countries, of stability
in production, and of appropriate commercial policies
in order to carry through the work begun at Bratton-Woods.
Commercial policy is suggested as the next problem
which should bE the subject of international study.
The sditorial concludes by raising a number of questions
and commenting thereon as follows: "before the last war
international loans went to undeveloped, underpopulated
areas which could supply valuable food stocks and raw
materials required by the lending countries. After the
present war international credits, short term or long
term, will bE
Regraded Unclassified
45
-7- #5865, July 24, from London.
term, will bE required and demanded mainly by developed
countries devastated by war and by overpopulated areas
anxious to industrialize themselves. Any the new lending
countries, unlike their predecessors, are unlikely to bE
Eager to import the products of their capital investment.
Will international lending under these new conditions
bE able to serve its former purposes? Will it lead to
international Equilibrium in the semi-automatic way
of the nineteenth century, or will it bE necessary for
all countries, singly and jointly, to Engage in a much
fuller measure of planning and direction in their inter-
national Economic relations? (***) Bretton-Woods has
cleared the way for the creation of two Essential instru-
ments to do internationally what has hitherto in the
main been done or left undone nationally, unilaterally.
The framework is there. The methods to bE Employed
within it remain for further debate".
The MAIL TELEGRAPH contains a despatch from its
special correspondent at Bratton-Woods and an Editorial
on the significance of the conference.
The special correspondent of the TELEGRAPH writes
that "The Monetary Conference has now EndEd with a
greater measure of achievement to its credit than
seemed possible
Regraded Unclassified
46
⑉8⑉ #5865, July 24, from London.
seemed possible in the Earlier stages of the conference",
The rest of the despatch is devoted principally to a
verbatim report of Secretary Morgenthau's closing state-
ment on the accomplishments of the conference and on
the functions of the fund and bank. A closing paragraph
is devoted to the provision in the draft agreement on
the detarmination of the par values of currencies in
terms of gold and to the provisions regarding Gold
subscriptions to the fund.
The TELEGRAPH aditorial states "nothing between
the two wars contributed more to the worlds Economic
distresses than the breakdown of the gold standard
coupled with the failure to SET up anything in its
place. This was due in part to tardiness in realizing
that a system which had worked reasonably well in the
Ninetenth Century was no longer applicable to the
altered circumstances of the Twentieth. Now that this
has become WEll and universally understood the nations
are showing a heartening and timely willingness to agree
on a workable alternative. That is the outstanding
significance of Brotton-Woods".
The Editorial
Regraded Unclassified
47
-9- #5865, July 24, from London,
The Editorial Emphasizes that the conference has
provided "nothing more than the machinery" and that
"if the nations should revert to the bad practices of
restriction, barrizrs and competitive devaluations
Bratton-Woods cannot save them from the consequences"
The Editorial continues by differentiating the functions
of the fund from those of the bank, the former "to
combine stability with flexibility in the Exchanges
and thus to facilitate an adjustment between domestic
and international conditions of trade without resort
to deflation on the one hand or unregulated devaluation
on the other" and the latter "to smooth the flow of
investment into war scarred and undeveloped countries
and to hasten their rehabilitation".
The Editorial concludes "the pattern of things to
come is gradually taking shape. Bratton-Woods reflects
at once the confidence of the United Nations in victory
and their resolve to use it well".
4 FINANCIAL TIMES article states that "the great
benefits which are EXPECTED to follow the launching of
the biggest financial scheme the world has EVEr known-
the International Recenstruction Bank and the Stabilization
Fund
Regraded Unclassified
48
-10- #5865, July 24, from London.
Fund--were stressed in broadcasts on Saturday night by
Lord Keynes and Mr. Harry D White, the British and
American Economists". Lord Keynes' broadcast V/D.S quoted
at length. An Editorial in the FINANCIAL TIMES states
that the conference "has achieved a notable measure of
SUCCESS in formulating plans for the most far reaching
monetary measures ever attempted". With reference to
final acceptance of the plan by the various governments
the Editorial states "it remains to bE SEEN whether in
all cases legislatures will back up the votes of their
representatives, but in view of the extent to which
various nations have been prepared to meet objections
raised in the course of discussion there would SEEM a
good prospect that the two new institutions will soon bE
created to take a hand in resettling the world after the
war. In this respect, the new bank will have a
particularly important part to play in the earlier
years of peace, and it is essential that its framework
should bE created as speedily as possible"
The Editorial also points out that since the
objectives of the new bank will bE wider than those of
the BIS and some overlapping might take place "little
surprise" should bE felt that conference decided
to "disband"
Regraded Unclassified
49
-11- #5865, July 24, from London.
to "disband" the BIS. The Editorial refers to the
allocation of the bank's funds for development purposes
and states "this is an innovation which will test the
view that loans made by the new bank will bE little
liable to default (***) the substitution of international
for private operations means introducing a novel mechanism
to which adjustments will have to bE made wherever
Experience proves them to bE necessary".
In an article headlined "money talks success "vast
benefits to world!" the FINANCIAL NEWS quotes at length
from Lord Keynes' broadcast and Secretary Morgenthau's
speech made at the Plenary Session of the Conference.
The article also surmarized fully the provisions of
the monetary agreement.
An article in the MANCHESTER GUARDIAN quotes
Extensively from Secretary Morgenthau's spatch. The
article also contains EXCERPTS from Lord Keynes' radio
address.
The DAILY HERALD captions its article "money pact
is 'blow to monopolists" and states "one of the first
tests of the willingness of the United States Congress
to cooperate in a "brave new world' is about to begin".
The article
Regraded Unclassified
50
-12- 5865, July 24, from London.
The article summarizes the statement made by
Secretary Morgenthau which, it adds, "seems to suggest
that Roosevelt will call for changes in the United
States tariff policy".
The DAILY MAIL article headlines "Russia to pay
more" merely states that the announcement that Russia
had agreed to an increase in her subscription to the
bank came as a surprise and conference came to a
"successful conclusion".
The DAILY EXPRESS features the Russian decision
to increase its subscription to the bank in a brief
statement which is headlined "money pact saved at last
minute". The statement adds that the conference "was
saved from Ending in a disagrement by a last minute
decision made in Hoscow".
Robert Waithmans ".merican Diary" in the NEWS
CHRONICLE is headlined "world insurance against ruin".
The article states "but now it has been, shown that the
United Nations can sink their differences and reconcile
their several intersots when they try to do it. The
political Effect of this revelation may bE greater as
time goes on".
Waithman states
Regraded Unclassified
51
-13- #5865, July 24, from London.
Waithman states that "one of the really great
results of the conference has been the entry of Russia
into the International monetary fold" and quotes
SECRETARY Morgenthau on significance of this develop-
ment. HE concludes with statement from KEYNES that
"no similar conference within memory has achieved such
a bulk of lucid, solid construction".
WINANT
HTM
Regraded Unclassified
my White 1ms. Bemstein-oig)
52
AIRGRAM
UNIVERSTRICED
FROM
Curacao, M.V.I.
Secretary of State,
Dated August 1, 1944
Rec'd August 5. 12 DD
Washington
A-67 August 1, 1944, 5 Dono Department's circular airgram
dated April 17, 1944, 3 nono
FINANCE: Mr. I.H. Camiles, n Director of Induro 2. Curiel's Bank,
who was appointed by the Governor of Currieno as an advinor to the
Hotherlands Delegation at the Monetory Conference recently held at
Bretton woods, New Humpshire, has returned to Curacao. According to
prone reports, Yr. Comilos, before his departure from Bretton Goodn,
expressed the hope that, an a result of the discussions at Bretton
Woods, Ciracao would have at its disposel, in the future, nufficient
dollars to natinfy its needn. He suid that, by its geographical
position, Curacao 1s, in great meanure, dependent on the United
States un concerned PUW naterials, foods and clothing.
0n DIT: Banks have plenty of money to lono
concerns
here, but complain that these rirns are not in nood of credit. On
the contrary, many 01' them have nore noney than they recuire to curry
on their business offairs.
COLLECTIONS
(NOSIVIT)
COMMUNICATIONS AND RECORDS
1944 AUG 5 PM 354 3 54
DIVISION OF
DEPARTMENT OF STATE
Regraded Unclassified
Cur-A-67
53
-?.-
COLLECTIONS: Banks and business men report that collections were
good throughout the month of July,
INDUSTRIAL PRODUCTION: The production of refined oil products, in-
cluding high octane ganoline, proceeded at an active reto during.
the month under review. The mining of phosphate rock at Newport WOB
at a reduced level.
export TADE: A large volume of export trade, particularly of refined
oil products, the principal export, continued during July.
LABOR AND REPLOYMENT - DAMMENPTCIES: The demand for labor, both skilled
and unskilled and of office workers, exceeded the supply. This in not a
new development in Curceso, nor primarily R renult of the war, although
it has been accentuated by the war.
No bankruptcies of any importance were royarted during the nonth
under review.
INTORTS: Crude oil innorts, the largent single item, continued at a
high level, Imports 01' foodstutic and general merchandise from the
United States, the chief supplier, were important. No complaints were
heard recording food supplien, although termorary scurci \en n:" verious
food items have developed from time to tine. *n connection rith imports
of hordware, textiles, household goods, etceters, a different situction
prevails, there boing many items which retailers are unable to obtain
or which they can obtain in very limited quentities.
RTAIL THANK
Regraded Unclassified
CUR A-67
54
÷
RETAIL TRADE: Retailers report smaller nalon in July than in the
previous month, Some report that sales were down as much an 20 nercent
from June saler, others report the decline at around 10 percent.
Retailers of dry goods com lain that they are having great dif-
ficulty in obtaining such items an underwear, shirts, pajamno, cornets,
printed textiles, drapories, children's cuite, girls' drenses, etcetera.
J. F. Huddleston
Aneri can Conoul
850
JFH/hc
Regraded Unclassified
55
LYICTORY
BUY
EXECUTIVE OFFICE OF THE PRESIDENT
UNITED
STATES
WAR
BONDS
WAR REFUGEE BOARD
AR9
STANDS
WASHINGTON 25, D.C.
OFFICE OF THE
EXECUTIVE DIRECTOR
AUG 1 1944
My dear Mr. Secretary:
I am enclosing herewith 8. copy of the
report of the War Refugee Board for the week of
July 17, to 22, 1944.
Sincerely yours,
JuPeble
J. W. Pehle
Executive Director
The Honorable,
The Secretary of the Treasury,
Enclosure.
Regraded Unclassified
56
Report of the War Refugee Board
for the Week of July 17 - July 22
CONDITIONS IN THE SATELLITE COUNTRIES
Minister Harrison has forwarded to us the text of his note
to the Swiss Foreign Office, including the message on behalf
of this Government which the Foreign Office subsequently
transmitted to the Hungarian Government. The message trans-
mitted requested that the appropriate authorities in Hungary
"state their intentions with regard to the future treatment
to be accorded to Jews in ghettos and concentration camps,
particularly whether the Hungarian authorities contemplate
the imposition of discriminatory reduction in food rations,
forced deportations to Poland or elsewhere, or the adoption
of other measures which, like those mentioned will be
tantamount to mass execution.' The message concluded with
a reminder of the grave view which this Government takes
concerning the persecution of Jews and other minorities and
of our determination to see to it that all those who share
the responsibility for such acts are dealt with in accordance
with the warning issued by the President in March.
Hungarian Anti-Semitic Measures Reportedly Modified
Board Representative McClelland meanwhile advised us
that credible intimations have reached him to the effect that
the Hungarian Government has modified its anti-Jewish stand-
point. Certain concessions are said to have been made
already, including an indication of the Hungarian regime's
willingness to discuss with the International Red Cross the
emigration of children and possible measures of relief to
Jews remaining in Hungary.
This reported softening of the Hungarian attitude was
confirmed in cables from Lisbon and Ankara.
Minister Harrison subsequently indicated that he had
been advised by the Swiss Foreign Office that authorization
has been given by the Hungarian Government for the departure
from Hungary of all Jews holding entry permits for other
countries, including Palestine. The Swiss Foreign Office
was said to have received this information through its
Legation at Budapest, which also reported that transit
through occupied territories was to be permitted by the
German Government.
Regraded Unclassified
57
- 2 -
The encouraging nature of these reports from abroad
have led us to increase our efforts to develop some program
through which there could be made available to threatened
persons in Hungary the balance of Palestine certificates
available, 5,000 U. S. visitors visas, additional U. S.
immigration visas to persons entitled to non-quota or pre-
ference status and to persons to whom U. S. immigration visas
now expired were issued after July 1, 1941, along with a
comparable number of visas of the other American republics,
British dominions, and neutrals.
Swiss Propose Taking Children and Expectant Mothers
Another message from Harrison reported details of 8.
convers tion held with Mr. Pilet-Golaz of the Swiss Foreign
Office. Although previous Swiss representations toward
obtaining permission for children to go to Switzerland from
German and German-occupied territory have thus far been
unsuccessful, Mr. Pilet indicated that the Swiss are now
considering proposing to the Hungarian Government that 5,000
children and expectant mothers be permitted to go to Switzer-
land. Should this proposal be accepted, Harrison added, the
Swiss would expect aid in arranging for the evacuation of
these refugees from Switzerland after the war.
With respect to the reports that deportations from
Hungary include some 400,000 persons, Mr. Pilet stated that
it is difficult to ascertain the exact figure, but that 60
far 250,000 such deportations have been indicated by reports
to the Foreign Office. It was asserted that 80 percent of
the Hungarians were opposed to the arrests of Jews carried
out by Hungarian authorities and the Gestapo. In many
instances Hungarians are said to have been punished for
endeavoring to aid and protect Jews.
The concern of both the government and people of Switzer-
land over the fate of the Jews in Hungary was stressed by
Mr. Pilet, who indicated, again in strictest confidence,
that the Swiss Government is facilitating communication
between interested groups in Switzerland and Jewish organiza-
tions in Hungary. The Swiss Minister in Budapest 1s under
instructions to leave the Hungarian Government in no doubt
a.8 to the attitude of the Swiss Government and Swiss people
with regard to these persecutions. Mr. Pilet indicated that
a similar message had been conveyed to the Hungarian Charge
d'Affaires in Bern.
Regraded Unclassified
58
- 3 -
With respect to Hungarian Regent Horthy, Mr. Pilet
indicated that while the Regent is said to have "washed his
hands" of all responsibility, Horthy had professed to be
opposed to the persecution of Jews. The conclusion was
drawn by Harrison that Horthy fears being named as one of
those responsible for these atrocities.
In response to our proposal that the Swiss approach the
Germans on the matter of improving the treatment of un-
assimilated civilian internees in Axis territory, Mr. Pilet
declined on the ground that such a request would be resented
and might jeopardize present efforts of the International Red
Cross to furnish relief to the persecuted.
International Red Cross Appeal to Horthy
Harrison also indicated that the Swies Foreign Office
had reported having transmitted a direct appeal from President
Huber of the International Red Cross to Horthy with respect to
the situation in Hungary.
Messages reaching us through private sources have con-
firmed the sending of a "handwritten" appeal to Horthy from
Intercross President Huber. This letter is said to have
enumerated known facts concerning the anti-Jewish persecutions
and to have offered to send a special Intercross mission to
Hungary to be present at deportations, to assist people with
medicines and food, and to exercise some control over the
ultimate fate of the deportees.
The New York Times on July 19 carried an article date-
lined Bern to the effect that, in response to President Huber's
message, the International Red Cross had received assurances
from Horthy that the deportation of Hungarian Jews had been
suspended and that Intercross might assist detained Jews and
aid in the evacuation of Jewish children. Another report
appearing in the Times on July 20 indicated that Intercross
had announced having obtained assurance from the Hungarian
Government of unrestricted transit for refugees through Axis-
controlled countries.
Harrison and McClelland have been asked to forward to us
whatever information they can obtain with respect to these
reports.
British Newspaper Reports
Ambassador Winant has reported to us the substance of
various newspaper articles appearing in British papers
Regraded Unclassified
59
- 4 -
regarding the proposal the Germans are reputed to have made
recently to the effect that they would spare the lives of
the remaining Jews in Hungary in exchange for certain war
materials. All articles strongly condemned the proposal as
blackmail and as a fantastic attempt to SOW suspicion among
the Allies.
WAR CRIMES
According to the Intergovernmental Committee representative
in Italy, records had been discovered there listing the names
of more than 15,000 individual refugees -- Yugoslavs who are
not Jews, Jews, and other persons -- who have been in Italy
at one time or another since war began, but whose present
whereabouts are unknown. Other available data were said to
give the names of refugees held at "free detention" places
and of those held in certain camps at various times. The
IGC representative suggested that notification be given Axis
authorities that this information 1s in the possession of
the Allies and that due punishment will be inflicted upon
those responsible for the ill treatment or death of the
persons named.
In view of the joint agreement as to our respective fields
of action, the Intergovernmental Committee has referred this
matter to us. Information on this score has also been sent
to the British Foreign Office as of possible special interest
to the War Crimes Commission.
We are asking Board Representative Ackermann, who is still in
Naples, to examine the records mentioned, if possible, and to
determine their usefulness either for the psychological
purposes suggested or for purposes of initiating action that
might result in the rescue or relief of persons whose names
and whereabouts may be available.
MERCY SHIP PROPOSAL
Myron Taylor has transmitted to us the substance of another
telegram sent to the IGC by its representative in Italy.
This cable described the organized deportation by the Germans
of Jews and other refugees from Italy to German concentration
camps for the ultimate purpose of their extermination.
The IGC representative suggested that the President of the
United States be approached "to intervene on behalf of these
persons in German camps and possibly for this purpose utilize
the Pope, if thought advisable, a.s intermediary.' Under the
proposal advanced, the Axis would be asked to deliver to a
Regraded Unclassified
60
- 5 -
named port in the North Atlantic all internees, including
stateless persons in particular. A mercy ship would be sent
to that port to carry on a shuttle service to some nearby
port in liberated Italy until all had been removed to safety.
Under this proposal threats would not be used; the invitation
itself would be "courteous and direct" and Germany would
merely "be informed beforehand that we hold the names of the
majority of those who were interned in Italy."
In a cable to London for the IGC, we are indicating our view
that any approach to the Germans should indicate the willing-
ness of the Allied Governments, with due regard for military
necessities, to consider measures for the reception in Allied
and neutral territory of any Jews in German-occupied territory,
including but not limited to deportees from Italy. The IGC 1s
being advised that this Government has, in fact, recently
indicated to the British our willingness to join in such an
approach to the Germans. We are indicating that while we are
prepared to consider sympathetically any plan designed to meet
the Italian problem referred to by the IGC representative, we
believe it to be more feasible for the Intergovernmental
Committee first to determine the practical problems involved
and to discuss the matter with the British Government.
REPORTS DESCRIBE CONDITIONS IN GERMAN CONCENTRATION CAMPS
Through our Embassy in London we have now been furnished a
copy of the widely publicized report prepared by the
Czechoslovakian Government-in-Exile on the frightful
conditions prevailing in the German concentration camps
of Oswieczim and Birkenau. The first of these camps, it
was stated, was originally reserved for political prisoners,
and thousands of Germans, Czechoslovaks, Poles, and Russians
were kept there in "protective custody. " Professional
criminals were subsequently added, and later, Jews from
the occupied countries.
During the period from April 1942 to April 1944 between
1,500,000 and 1,750,000 Jews were said to have been put to
death by gas or in some other way in these two camps. Half
of these victims were said to have been Polish, the others
being from Holland, Greece, France, Belgium, Germany, Yugoslavia,
Czechoslovakia, Italy, Norway, Lithuania, Austria, and other
countries. About 90 percent of the persons arriving in
Oswieczim and Birkenau were taken directly from the trains to
be put to death, it was said, while the others became inmates
of the camp, performing arduous labor in the vicinity and
serving as human guinea pigs in some instances.
Regraded Unclassified
61
- 6 -
Death by gas was said to be reserved as the special
fate of Jews taken to the two camps, the gassing of Aryans
being carried out only in exceptional cases. Aryans were
said to be shot with pistols on a special execution ground.
The deaths of still other thousands from hard work, typhus,
malaria, and other illness, and from 111 treatment were
described.
Another report, in sickening detail, concerning the
systematic extermination of Jews and other persons in the two
camps to which the Czechosolvakian report referred, was
subsequently transmitted to us by Board Representative Mc-
Clelland. McClelland's report was based upon the personal
experiences related by two Slovakian Jews who managed to
escape from these camps and upon the experiences independently
related by a non-Jewish political internee who likewise
escaped from Oswiecsim. The names of a number of individuals
responsible for these persecutions were also forwarded by
McClelland.
British Editorials Call for Retribution
Retribution for such Nazi savagery was discussed recently
in two British editorials, according to a communication from
Ambassador Winant. The News Chronicle concluded that the
only way of stopping such murders and persecutions is by
letting them know that the ringleaders will not be allowed
to escape. The Daily Mail declared that terms of our "code of
retribution" should be hammered home to the Germans by all
possible means. Lists of those to be tried, it added, should
be distributed and broadcast all over Germany.
TEMPORARY HAVEN'S FOR REFUGEES IN THE UNITED STATES
Board Representative Ackermann has reported having completed
the selection and processing of the refugees who are to be
given temporary havens in this country. A total of 985 refugees
were subsequently reported to have left Italy in mid-July
aboard an Army transport, after medical inspection had been
completed at a camp near Naples. Inoculations for typhoid,
typhus, small pox, and tetanus were to be completed on ship
and at Fort Ontario. The clothing, health, and general condi-
tion of these refugees were reported to range from fair to
good. No cripples or serious chronic cases were said to be
involved, though there may possibly be a few stretcher cases.
The Director of the Displaced Persons Sub-Commission meanwhile
advised Ackermann that an additional 4,000 to 5,000 stateless
refugees can be expected to be found when Florence is liberated.
Regraded Unclassified
62
- 7 -
EVACUATIONS TO AND THROUGH PORTUGAL
James Mann has returned from Portugal and has brought with
him a copy of the agreement which was worked out in order to
eliminate conflict in the operations of various refugee
organizations operating in Spain and Portugal.
COOPERATION WITH THE BRITISH
Ambassador Winant has advised us of the receipt by our Embassy
there of a letter from the British Foreign Office in response
to our proposal that additional transblockade supplies be
permitted certain neutral countries to meet the needs of
incoming refugees. The Foreign Office indicated that British
representatives have now approached the five neutral govern-
ments concerned and have also been directed to act 1.. concert
with U. S. representatives in this matter.
Report from Ankara
Board Representative Hirschmann meanwhile advised us that
the proposed joint approach to the Turkish Government on this
score was discussed with his British colleague. Both were of
the opinion that at this time, joint action of the nature
suggested would not achieve the desired purpose and might in
fact tend to bring about the adoption of a less liberal policy
than that now being pursued by the Turks. In place of making
a. Joint approach, Hirschmann and the British representative
propose to take advantage of the first favorable opportunity
to emphasize the readiness of the U. S. and British Govern-
ments to assist Turkey, whenever it may become necessary, by
arranging the onward movement of refugees to other havens and
by making available food and other supplies as well as funds.
EVACUATIONS TO AND THROUGH TURKEY
In another communication from Ankara Hirschmann reported to
us his belief that the successful completion of the voyage of
the "S. S. Kazbek" indicates that the Rumanian authorities
have undergone a change of heart in their attitude toward
the Jewish people in Rumania. Hirschmann stated that all
reports indicate that they are being more helpful in further-
ing the emigration of Jews from Rumania via Turkey to Palestine.
Hirschmann also indicated that he had been informed that
instructions were sent to Turkish border guards in May of this
year by the Turkish authorities, calling for the admission
into Turkish territory of refugees attempting to cross the
border illegally from Bulgaria. These instructions were said
to have been issued after written assurance had been given by
the British Ambassador that Palestine immigration certificates
Regraded Unclassified
63
- 8 -
would be issued to those arriving in this way. It was said
that 11 or 12 refugees who presented themselves at the Turk-
1sh border during May and early June were permitted to enter
Turkey, after being detained and investigated by the police.
Hirschmann was informed by a representative of the Jewish
Agency, however, that later in June seven additional persons
tried unsuccessfully to cross the border. Despite efforts
made in Ankara to have affirmative instructions sent to the
border authorities, these refugees are said to have been sent
back from the frontier. Hirschmann indicated that at the
present time no persons are entering Turkey illegally by this
route. The attitude of the Turkish officials in this matter
seems to be that it is dangerous from the point of view of
Turkish security to open the border indiscriminately because
of the difficulty involved in distinguishing between genuine
refugees and political agents. Hirschmann indicated his
intention of pressing our request that Turkish frontier
authorities permit the entry of refugees from Bulgaria.
Counselor Kelly of our Embassy there subsequently stated that
in view of the assurance given as to the availability of
Palestinian entrance visas for all Jewish refugees who reach
Turkey, he was requesting that the Turkish Foreign Minister
instruct Turkish consuls in Bulgaria, Rumania, and Hungary to
issue without prior reference to Ankara individual or collective
Turkish transit visas to any Jewish refugees who may apply,
and also that he instruct the authorities at Turkish frontier
posts to permit Jewish refugees to enter Turkey and proceed
to Istanbul, irrespective of the means by which they arrive
at the frontier, and even though they arrive at the frontier
without Turkish visas.
"Bardaland" Claim Being Pressed
Despite the statement transmitted by Minister Johnson to
the Swedish Foreign Office with respect to our intention of
withholding action on the preliminary indemnity claim present-
ed by the owners of the "Bardaland" pending submission of a
final itemized claim, the Swedish Foreign Office has renewed
the owners' request for a preliminary payment of some $20,000.
The owners of the "Bardaland" are said to have indicated
that a full itemization cannot be made until the "Bardaland"
arrives at Gothenburg toward the end of July. It was said
that the total indemnity to be claimed was not likely to
exceed approximately $30,000.
EVACUATIONS TO AND THROUGH SPAIN
According to a communication from Madrid, as a result of
representations made by our Embassy there, the Spanish Govern-
ment has authorized the issuance of visas to 500 Jewish
Regraded Unclassified
64
- 9 -
children in Hungary whom Jewish organizations in Tangier
hope to transfer to temporary refuge in Spanish Morocco.
It was stated that the Spanish Legation in Budapest has
been instructed to do everything possible to facilitate the
travel of this group to Spain. It was also understood that
the Vatican has requested papal representatives in Berlin
and Budapest to use their good offices to the same end.
Proposal To Close Camp Lyautey Opposed
Through Ambassador Winant and Sir Herbert Emerson of the
IGC we were advised of a suggestion made by the IGC representa-
tive in Algiers that Camp Lyautey, which now holds 600 persons,
be closed. In the opinion of the IGC representative, 8.B a
result of the improving international situation no more
large contingents of refugees are to be expected. The costly
maintenance of an organization designed to care for 2,000
persons 1s therefore, he felt, not justified. The IGC
representative further asserted that the local management
of the camp had recommended closing it and transferring the
600 inmates to existing camps in Egypt and Palestine and to
other countries willing to receive them.
The IGC replied that the question of the future of the
camp is one primarily for the U. S. and British Governments
in consultation with French authorities. While the IGC had
no instructions to give, it stated its feeling that any
decision to close the camp now would be premature.
We are indicating to Winant our full agreement with the
IGC position. Such a suggestion is, in fact, difficult to
understand, in view of the necessity for caring for increas-
ing numbers of refugees escaping from enemy territory and in
view of recent decisions to expand at once existing refugee
facilities in the Middle East and to open new camps in
French North Africa, Tripolitania, and at Fort Ontario in
this country.
EVACUATIONS TO AND THROUGH SWITZERLAND
Board Representative McClelland has advised us that a census
has now been completed of refugee children presently in
Switzerland for whom overseas emigration 1s considered
desirable after the war, including those arriving both
before and since January 1, 1944. It was stated that the
organizations to whom the children have been entrusted have
begun a careful selection of children based on the various
countries of destination. McClelland indicated that within
two months, these organizations are expected to start
presenting children to our consulates for the special U. S.
immigration visas that have been authorized. It wa.s
Regraded Unclassified
65
- 10 -
estimated that the total number, however, would not exceed
500. McClelland added that, unfortunately, owing to other
circumstances, the availability of these visas has encouraged
only slightly the arrival of more children from France.
In another communication from Bern we were advised that some
505 refugee children entered Switzerland from France between
January 1 and June 7. The number would have been considerably
greater, it was thought, had it not been for the upset
conditions in areas along the Franco-Swise border, especially
the disruption of all regular transportation in France.
Discussions Continue Re Cuban Acceptance of Child Refugees
Ambassador Braden has asked us to supply detailed informa-
tion as to the procedure which would be followed in making
available for the support of some 1,000 refugee children the
funds which the American Jewish Joint Distribution Committee
has agreed to supply, should the Cuban Government agree to
their entry. Braden added that, despite continuing discussions
with Cabinet officials and with the President of Cuba, he has
not yet been able to obtain a definite acceptance of the pro-
posal.
Evacuation of Norwegians to Sweden
In response to our recent request for a report as to the
total amount, in the dollar equivalent, of free currency, if
any, sent into enemy territory during the period ending June 1
under the Treasury license authorizing such expenditures, if
necessary, in accomplishing certain evacuations from Norway
to Sweden, Johnson and Olsen promptly indicated that virtually
no free exchange had been made available to Norway.
On the basis of a more detailed report subsequently filed
with Johnson and Olsen covering activities in Norway, we were
advised that of the $50,000 originally received, approximately
100,000 Swedish kronor were used to purchase 328,000 Norwegian
kroner. This Norwegian currency was said to have been
purchased locally from Norwegian refugees who had brought the
currency to Sweden, and it was stressed that there could be no
possible benefit to the enemy from these transactions. Of
this Norwegian currency, approximately 50,000 kroner have been
sent back to Norway through the underground for relief purposes,
including the support of families of persons in concentration
camps.
As a result of these operations, substantial numbers of
Norwegians have been enabled to escape to Sweden. It was
reported that during June about 850 Norwegians made such
escapes, despite a severe tightening of border controls.
Regraded Unclassified
66
- 11 -
During July Norwegian refugees are said to be arriving in
Sweden at the rate of approximately 65 a day.
Some 10,000 youths who failed to respond to the Nazi
labor mobilization are reported to be hiding in the forests
in the vicinity of Oslo. Funds supplied by American Relief
for Norway are likewise assisting in maintaining these youths.
Other expenditures include the purchase in Sweden of food,
clothing, and shoes for severe hardship cases in Norway.
RECOGNITION OF LATIN AMERICAN PASSPORTS
Minister Harrison has reported that, in response to our request
that Switzerland obtain detailed information concerning the
treatment of Jews in Hungary and as to the fate of Jews holding
Latin American documentation in particular, the Swiss Foreign
Office stated that since Switzerland is charged only with the
protection of Uruguayan and Chilean interests in Hungary, it
is unable to obtain the detailed information requested except
28 regards Jews holding documents issued in the name of these
two republics.
The Swiss Legation at Budapest has indicated that thus far
Hungarian authorities appear disposed to accord exceptional
treatment to such foreign nationals under Swiss protection.
It was stated that the obligation to wear the Jewish star
and to declare property had thus been dispensed with, insofar
as these persons were concerned, and reductions in food rations
had also been avoided. In the opinion of the Swiss Legation,
all Jews able to demonstrate foreign nationality would be
spared anti-Semitic action on the basis of requests from their
protecting power.
Exchange Plans Being Made
The State Department has now advised our Embassy in Madrid
that definite indications have been received through trusted
channels that the German Government is now disposed to cooperate
in effecting exchanges on Spanish territory of German nationals
from South America against refugees from German-controlled
territory. It 1s proposed to send the refugees involved to
Camp Lyautey. The State Department has suggested that our
representatives in Madrid investigate the possibility of
making arrangements at Madrid and Algiers, with Spanish and
French authorities and with the military, whereby special
treatment might be given refugees included in official ex-
changes whose bona fides may possibly be less open to question
than those of refugees appearing on Spanish territory 8.B 8.
result of their own efforts. While several alternatives were
suggested, State indicated that it is not particularly interest-
ed In the actual means devised, but is more concerned that this
Regraded Unclassified
67
- 12 -
Government's program to rescue threatened persons shall not
be imperiled by any lack of material arrangements in Spanish
territory for their reception and prompt onward transportation.
Representations Made to Brazilian Government
We have been advised by our Embassy in Brazil that
representations have been made to the Brazilian Government
urging concrete action on the part of Brazil in line with the
exchange standards resolution adopted by the Emergency Advisory
Committee for Political Defense at Montevideo. In these re-
presentations emphasis was placed upon the attitude expressed
last year by Dr. Aranha to the effect that it might be a good
thing for Brazil to get rid of a large number of Germans there.
Report from El Salvador
From El Salvador we have been advised of the text of a note
sent by the Salvadoran Foreign Minister to the Emergency
Advisory Committee. In this note it was stated that there
are only a few Salvadorans in German territory. Outside of
Germany there were said to be five Salvadorans who should be
repatriated. The Salvadoran note promised that direct negotia-
tions would be begun with respect to the repatriation of these
Salvadorans.
Cuban Action Promised
As a result of further representations by Ambassador
Braden, the Cuban Minister of State has now agreed to supplement
Cuba's original representations concerning the return of
deportees to Camp Vittel, by directing the Cuban Embassy in
Madrid to request that the protecting power inform the German
Government that Cuba will not permit the validity of any of
its passports to be questioned by the Germans. It was also
indicated that the Cuban Government now agrees to consider as
exchange material all holders of documents issued in Cuba's
name, although the right is reserved to refuse admission to
such passport holders as Cuba may later prefer to exclude.
We have communicated to our Embassy in Madrid the sub-
stance of Braden's communication, along with a request that
efforts be made to speed the Cuban representations.
Since some confusion exists as to whether the Cuban
representations should be made through Spain as Germany's
protecting power in Cuba, or through Switzerland as Cuba's
protecting power, clarification has been requested.
Haiti Agrees To Act
We have been advised by our Embassy in Haiti that the
Haitian Government has likewise agreed to issue instructions
Regraded Unclassified
68
- 13 -
to its Legation at Bern to inform the German Government through
Swiss authorities that Haiti recognizes the validity of all
its passports held by persons in enemy or enemy-occupied
territory until an examination of each case shall have been
made. This applies to those persons who were unable to comply
with the decree-law of February 1942, as well as to those
persons holding documents whose validity is open to doubt.
While this decision has yet to be confirmed in writing and
will require the approval of the Haitian Council of Ministers,
no difficulties were anticipated.
It was emphasized that Haiti's action on this score 18
purely a humanitarian measure, and that Haiti likewise reserves
the right to refuse to admit any such persons subsequently held
to be undesirable as immigrants.
NEW RELIEF PROPOSALS RECEIVED
Board Representative McClelland has relayed to us the substance
of a memorandum submitted by the International Red Cross on
certain critical clothing requirements of civilian prisoners
in German concentration camps. To date, Intercross has not
undertaken to send clothing to such civilian prisoners and
therefore has no information based on practical experience with
this type of relief. The possibility of such clothing dis-
tributions was to be investigated more fully by Intercross,
and a further report is expected.
Polish Relief
Johnson and Olsen have explored with a relief group in
Sweden the nature of its activities in Poland, as well as
facilities for expanding the scope of its operations. At the
present time, this organization is said to be receiving urgent
requests from Poland for substantial additional amounts of
clothing for children, as well as for basic foodstuffs and
vitamins. We were advised that funds to meet these require-
ments in full are lacking, and that immediate use could be made
of $25,000. The Polish Legation in Stockholm has spoken
highly of the effectiveness of this organization's activities
and has expressed the strong hope that American financial
assistance can be obtained.
COOPERATION WITH THE INTERGOVERNMENTAL COMMITTEE
The Intergovernmental Committee has now agreed to assume
certain credit obligations for previously scheduled European
rescue and relief activities. Arrangements have been made in
this connection whereby the JDC is to act as an agent of the IGC.
J.W.Peble J. W. Pehle
Executive Director
Regraded Unclassified
69
CABLE FROM WAR REFUGEE BOARD TO AMBASSADOR WINANT, LONDON.
Please refer to your 6005 of July 28 concerning the suggestion made
by the IGC Director that the Vatican be asked by the British and American
Governments to intervene with the German Government for the release of
non-Italian civilian refugees held in North Italy.
As mentioned in our 5791 of July 24, the American Government has made
clear to the world its willingness to ocoperate with other sympathetic
governments in finding havens of refuge for victims of enemy oppression
able to leave German occupied territory. Therefore, Emerson's proposal
is completely acceptable to this Government.
It is suggested that Emerson now disouss this matter with the British
Government and secure its consent to requesting the Vatican to intervene,
on the understanding that the British will share with the American Govern-
ment the responsibility of making arrangements for the maintenance, care and
transportation of the refugees involved in the event that the Vatioan's
efforts prove successful.
The Board would appreciate being advised as soon as the British
Government has signified its consent.
11:00 a.m.
August 1, 1944
MJMarks:AA:css 7/31/44
Regraded Unclassified
70
KEM
PLAIN
Department
August 1, 1944
AMEMBASSY,
LONDON
6065, First
Department approves allocation fundsefoIGC proposed for
survey Switzerland. Refer your 6045 July 29.
STETTINIUS
(ACTING)
(GLW)
WRB:GLW:OMH
BC
S-CR
8/1/44
Regraded Unclassified
PARAPHRASE OF TELEGRAM ENCEIVED
71
FROM:
AMEMBASST, London
TO:
Secretary of State, Vashington
DATED:
August 1. 1944, 2 p.m.
NUMBER:
6108
CONFIDENTIAL
Delivery of the following message to Dr. Kubowitsky
of World Jewish Congress. New York, is requested by 0
Mr. Ernest Frischer of Crecheslevak State Council. This
message 10 in reply to message from Kubowitsky trans-
mitted by VRB in Department's telegram of July 21, no. 5754.
We greatly appreciate your report. It is now possible
for Re to obtain further wears for Crecheslevak relief
action from (1) preceeds of funds denated by Csecheslevak
citizens and (2) the Government of Csecheslevakia. Fur-
thermore, the Central Council of Jewish Refugees in London
has premised to allecate to the action 9,000 peunds for
the purpose of buying feed parcels and transporting then
to Teresin and elsewhere from Lisbon. Consequently it
will be possible for us to continue activities on the
same scale as before. Kindly give JDC my cerdial thanks
for its understanding and invaluable assistance. The
action of the gentlemen in New York in this matter is also
greatly appreciated by me.
WINANT
I IDD: RRH: 88
Regraded Unclassified
PLAIN
Lendon
Dated August 1. 1944
Hea'd 12:30 p.m.
72
Secretary of State
Washington
Regraded Unclassified
6111, First
Following press comminique is being released
to British papers today w Intergovernmental Committee.
"For the first time since its reorganisation
in August 1943 and the fourth time since its formation
in July 1938, the Intergovernmental Committee on
refugees will held a plenary session in London
beginning on 15th August. Thirty seven Governments
both United Nations and neutrale, are nov members
of this international body. In addition to their
official delegates, it is expected that the meetings
will be attended by observers from the United Nations
Relief and Rehabilitation Administration, the Supreme
Headquarters of the Allied Expeditionary Force,
the War Refugee Board of the United States, the
International Red Cross Committee, the International
Labour Organisations, sad the Office of the League
of Nations High Commissioner for Refugeon, as
well as voluntary organizations interested in refugees
and relief. The plenary session will be public,
but, as accomodation is limited, admission will be
by ticket. for which application should be made
to the Secretary. Intergevernmental Committee on
Refugees, 11D Regent Street, SS.VV.11.
Prominent smong matters to be considered
by this first pleasry session of the reorganised
committee are the edeption of a new constitution
procedure and financial regulations, and the election
of en onlarged committee. The pleaary session
will also have presented to it for general discussion
a full report by Sir Herbert Meerson, the director,
on the work of the committee during the last year.
This work falls into three classes:
8
(1). Measures relating to the reseye and preservation
of threatened persons will within the territory of
Germany and her Buropean Allies or territory occupied
or controlled by them.
(2) Pre-armistice measures relating to persons
who may have come out of such areas to netural or
liberated areas: and
(s) Post-armistice seasures for relief, repatriation,
and resettlement of those who cannot be repatriated.
In ⑉
73
-2 #6111, First from Landon
In can or more of these types, the committee.
in order to insure the maximum benefit to the refugees
with the minimus of deplication, has developed
cordinl working relations with the other national
and international bodies mentioned above.
The Intergovernmental committee was formed as a
result of the conference which was convened, on
the initiative of the American Government. at Evian
in 1938. During the four years following the outbreak
of var in 1939, the activities of the committee
were restricted; but in August 1943 the executive
committee adopted a series of recomendations
which involved a great expansion of the consittee's
membership. scope, functions and finance. Under
its expanded mandate, the connittee has during the
last year been engaged in humanitarion activities
aimed nt alloviating the present position of refugees
and in preparations designed to contet materially
in solving the post-var refugee problem.".
Intergovernmental Committee suggests Department
or WRB might wish to release same communique to
American papers.
WINANT
VSB
Regraded Unclassified
74
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, London
TO:
Secretary of State, Washington
DATE:
August 1, 1944
NUMBER:
6123
CONFIDENTIAL
The message given below is for WRB and the Department
from Emerson, IGC, and refers to the July 28 telegram No. 5948
from the Department.
Telegram relative to Hungary was communicated to us by
the Embassy. Following is our position as regards funds
which are available for the maintenance of refugees arriving
in neutral countries from Hungary: Our budget for 1944 opera-
tional expenses is one million pounds underwritten oqually
by the Governments of Great Britain and the United States.
Both have made the necessary provision. IGC made it claar
when estimate was presented that adoption of estimate should
not exclude consideration of supplementary estimates in case
development of work should require further provision during
the year.
Credit scheme has been allocated £900,000 of above sum
of 5-1,000,000. 6100,000 balance is being reserved for other
expenditures of operational nature.
In view of the fact that maintenance and other expenses
including perhaps refugees' transportation from Hungary would
constitute new project before expenditure could be made
it would be necessary to have prior approval of the two govern-
ments. At present stage at would clearly be impossible in placing
such a project before the two governments, to make other
than a very rough estimate due to uncertainty as to number
of persons involved, contributions which voluntary organi-
sations might make, period during which maintenance would
he required, and attitude of neutral governments toward
receipt of financial assistance. The proposal would, there-
fore, have to be in form of an assurance from two governments
that necessary funds as required would be furnished to IGC.
Rough initial estimate could not be less than ₺5,000,000
for the remainder of this year and all of 1945, and possibly
considerably more. It would be essential to have final agree-
ment of two governments and subject to that it may be assumed
that project would be strongly supported by executive commit-
tee, on the understanding that IGC would be an active partici-
pan in project and not merely an agent for providing funds.
5400,000 could
75
- 2 -
£400,000 could be appropriated out of 1944 budget
provision of ₺1,000,000 for this new project but then beyond
end of current year we would be left without provision for
credit scheme. We consider credit scheme highly important
and would therefore certainly request two governments to
implement the understanding that funds needed for its continu-
ance would be supplied. 6400,000 would be available at once
to facilitate beginning stages of project for Hungary if this
condition prevails.
This maintenance period is of great concern to IGC
not only from angle of finance but also because its function
will be finding ermanent homes for those who are unable to
return to Hungary. IGC is deeply interested, therefore, in
extent and nature of assurances which the United Nations may
propose to give that with due consideration to military
situation havens in their territories will be provided as
rapidly as possible. We think that in this regard, providing
Governments concerned give consent, existing offers concerning
children in France should be availed of by transferring them
to children in Hungary. Offers by the U. S. Government to take
five thousand and by Canadian Government to take one thousand
are two examples.
Above are director and associates' personal views.
It is premature to refer matter to the Executive Committee
until there is agreement between two governments but there is
no doubt that Executive Committee will wish to avail itself
of this opportunity to save lives of defenseless people by
making every possible effort to utilize it.
WINANT
Regraded Unclassified
76
Distribution of true
Regraded Unclassified
August 1, 1944
reading only by special
arrangement. (SECRET w)
10 p.m.
AMEMBASSY,
LISBON.
2149
The following for Dexter is WRB 64.
Please deliver the following message to Dr. Joseph
Schwartz, 242 Rua Aurea, Lisbon, from Moses A. Leavitt of
the American Jewish Joint Distribution Committee:
QUOTE We cabled Sale Mayer on July 26 INNER QUOTE
Sternbuch cabled Rabbinical group here that 1,200 Hungarian
Rabbis other leaders are now entrained Vienna for deportation.
He claims you refused help to save this group and that immedi-
ate action may still rescue them by repatriation. He also
claims that no understanding has been reached with you for
coordination resoue activities despite such report to WRB.
Orthodox groups here deeply disturbed by this situation and
exerting great pressure on us. We are convinced that you and
McClelland are doing everything to resoue as many people as
possible, but we are not in position to answer such charges
made by Sternbuch. Although we realize that Sternbuch is
concerned primarily with Rabbinical groups we are just as
interested in resouing these elements and we hope that every
effort is being made to save them and that every possible
measure is utilised by you to effect their resoue. Please
cable sconest END INNER QUOTE Can you ascertain whether
this group similar to 1200 to 1700 you reported from Ankara
as en route to Spain STOP Urgent you send us soonest as full
information as available STOP Remitted $60,000 to British
Passport Control Office Istanbul STOP Accordance your analysis
Balkan rescue program for 5700 people we estimate total cost
to us would be $2,060,000 which we authorised STOP View your
plan to transfer Resnik to Lisbon shall we still set up
$100,000 revocable credit as you requested UNQUOTE
STETTINIUS
(Acting)
(GLW)
WRBsMMV:KG
S/CR
WE
SWP
7/31/44
77
CABLE TO LISBON
From War Refugee Board to Norweb
Please deliver the following message to Dr. Joseph Schwarts,
242 Rua Aurea, Lisbon, From Moses A. Leavitt of the American Jewish
Joint Distribution Committee:
"On July 15 we remitted $1,600,000 to McClelland for Saly
Mayer, of which $1,000,000 was for special fund sequested by
McClelland and Mayer and $500,000 for Balkan resoue program as
you requested from Istanbul STOP Regarding your proposal for
$500,000 for camps for 30,000 Hungarian refugees, this proposal
came originally from Saly Mayer and WRB requested McClelland
to ascertain reason why (1) foreign currency was required,
(2) whether local funds could not be raised for maintenance
against blocked dollar accounts and (3) whether food supplies
could not be sent in under International Red Cross supervision.
WRB has had no reply to these questions. STOP Expedt Arthur
Greenleigh arrive Rome momentarily".
THIS IS WRB CABLE TO LISBON NO. 67
10:15 a.m.
August 1, 1944
FH:lab 7/31/44
Regraded Unclassified
78
BAS
TO BE SENT IN SECRET "W"
Distribution of true
reading only by special
August 1, 1944
arrangement. (SECRET w)
7 p.m.
AMEMBASSY,
LISBON.
2146
The following for Dexter is WRB 68.
Reference your 2345 of July 28, your 127 to WRB.
Board would appreciate list and other documents mentioned.
Minister Harrison and McClellend, Amlegation Bern, are
fully familiar with problem of safeguarding lives of persons
holding documents issued in the names of American republics
and claiming such nationality. They have been in frequent
communication with Swiss Foreign Office on this subject,
including deportations from Vittel, and several important
measures have been taken with Swiss assistance. For these
reasons, Board suggests that you communicate facts and
problem to Minister Harrison and McClelland immediately
by quickest available means. Please repeat such message
to Board.
STETTINIUS
Acting
(GLW)
ACTING
WRB:MMV:KG S/CR
WE
SWP
8/1/44
Regraded Unclassified
79
CABLE TO MINISTER HARRISON AT BERN AND McCIELLAND
Reference Department's 2486 of July 21, WEB's 84,
Turkish Embassy, "ashington, now advises that early last
June Turkish Consulate Bucharest was instructed to issue transit
visas to Schleiffer family.
THIS IS WRB BERN CABLE NO. 107
.
4:20 p.m.
August 1, 1944
Regraded Unclassified
80
CABLE TO HARRISON FOR MoCLELLAND, BERN, FROM THE DEPARTMENT AND WAR
REFUGEE BOARD.
Reference Legation's No. 4802 of July 26, 1944.
We rely entirely on your judgment in this matter and
accordingly, and in view of the pending consideration of the reported
Hungarian offer to permit emigaation, we conour in your view that
it is not (repeat not) feasible to undertake the transaction in question
at this time. We assume that if further information is received you
will keep us fully advised. We also assume that you will continue to
make all possible efforts to rescue refugees from Hungary and other
German-occupied areas.
The foregoing has been discussed with the JDC and it is in
accord with the views expressed.
THIS IS WRB CABLE TO BERN NO. 106
11:00 a.m.
August 1, 1944
FHslab 8/1/44
Regraded Unclassified
81
MAE-602
Lisbon
Distribution of true
readingemly by special
Dated August 1, 1944
arrangement. (SECRET W)
Rec'd 3:03 pame
Secretary of State,
Washington.
2371, August 1. Noem^
WRB 130
Embassy has received telegram No. 142 from
Amembassy London which was sent to Washington as
London's 6040, July 29, 1944 regarding admission
Portugal Hungarian children under 10. However,
REURTEL 2118 (WRB 62) July 28 both British and American
Embassies question wisdom making separate approach for
children. British have telegraphed Foreign Office
asking if they agree with policy outlined in Depart-
ment's 2118, July 28, 10 p.m. and if they do, to
authorized British Embassy Lisbon to proceed along
those lines. It seems best for both approaches to
follow procedure indicated 2118. This would include
children under 10.
In order that approach to Portuguese may be made
with better chance of success, desire information on
following points: (a) Have definite arrangements been
made for food to come through blockade? (b) Is
provision for Hungarian refugees to be governmental
or, as previously, at expense private organisations?
(c) Embassy 8 hould have as definite assurances as
possible as to when evacuation from Portugal is to
take place and, if possible, ultimate destination.
(d) Is United States Government prepared to cover
administrative costs incurred by Portuguese in handling
influx? This would include police, clerical, govern-
mental work, et cetera. British asking similar ques-
tions. Telegraph reply urgently.
NORWEB
JT
WTD
Regraded Unclassified
82
MAE=624
Lisbon
Distribution of true
reading only by special
Dated
August 1, 1944
arrangement. (SECRET W)
Rec'd
3,56 p.m.
Secretary of State,
Washington.
2374, August 1, 1 p.m.
Have given Schwarts orally conclusion Department's
2112, July 28, 5 p.m. This is WRB 131. He apparently
reluctantly accepts Department's decision.
NORWEB
EH
EMB
Regraded Unclassified
83
BE-758
PLAIN
Lisbon
Dated August 1, 1944
Rec'd 10:16 p.m.
Secretary of State
Washington
2379, First
FOR EDWARD CAHILL FROM ELISABETH DEXTER. WRB
132 UNITARIAN 310.
Am cabling Kuhlman inter-Governmental Committee:
"Have just learned of inter-Governmental Committee's
meeting August 15. Would attendance representative
Unitarian Committee be advantageous? If 80 could
you expedite British visa for me?" Is Committee
interested May attending, if reply favorable? Other
organizations here planning send representatives.
Think possibility good getting visa and air passage.
NORWEB
HTM
Regraded Unclassified
84
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
SECRETARY OF STATE, WASHINGTON
TO:
American Legation, Bern
DATED:
August 1, 1944
NUMBER:
2605
CONFIDENTIAL
FOR MCCLELLAND AND HARRISON.
1. Please express to appropriate officials of the Swiss
Foreign Office the deep appreciation of this Government for the
information contained in your 4506 of July 14 and your 4604 of
July 19.
2. There are a number of persons in enemy controlled areas
to whom American visas were issued on and after July 1, 1941,
the date when present existing procedures and security checks
became effective, who, by reason of transportation difficulties
and the advent of war, were unable to make effective use of such
visas. It is believed that a large proportion of such persons
are among those groups subject to enemy persecution. In the belief
that the availability of new American visas for such persons may
save their lives, please request appropriate officials of the
Swiss Government to advise enemy governments that American consular
officers in neutral countries have been authorised to issue an
immigration visa to anyprson to whom an American immigration
visa was issued or for whom a visa was authorized on or after
July 1, 1941 and who has been in areas controlled by Germany or
any of Germany's allies since December 8, 1941, provided that such
person presents himself to an American consular officer in a
neutral country and is found not to have become disqualified for
the issuance of a visa.
Accordingly, American consular officers in Switzerland are
hereby authorized to issue new American immigration visas to any
such person to whom an American visa was issued or for whom such
visa was authorized after July 1, 1941, provided that (a) such
person other than a child under 16 years of age is found upon
telegraphic reference to the Department for security check not
to be the subject of an adverse report dated subsequent to the
previous appromal, (b) such person is not affirmatively found by
the consul to be inadmissible into the United States under the,
law, or (o) the consul does not consider that the case is
one which should be recommended for consideration under the committee
procedure.
In advising Swiss officials of the foregoing please attempt
to secure their prompt agreement to advise enemy governments of
Switserland's willingness to permit the entry into Switzerland, with
or without transit visas, of all persons to whom American immi-
gration visas were issued on or subsequent to July 1, 1941. You
may assure such officials that any such persons so admitted will
be adequately maintained and that any who may be found not (repeat
not) to be qualified for the issuance of a visa will be evacuated
as promptly
Regraded Unclassified
85
- 2 -
as promptly as possible. Detailed instructions in connection with
the issuance of new American immigration visas pursuant to the
foregoing authority will follow promptly. The same request is
being made of Sweden, Turkey, Spain, and Portugal.
3. There follows the substance ofthe pertinent portion of
a message to Amembassy London:
QUOTE In further response to message from Amlegation
Bern, the substance of which is quoted above, this Govern-
ment is prepared to advise the Hungarian and neutral govern-
ments that all Jews arriving in neutral countries from Hungary
will be afforded havens in United Nations territory just as
promptly as military considerations permit, neutral governments
to be given adequate assurances as to the maintenance of
such persons. Please endeavor to ascertain from the Foreign
Office whether the Government of the United Kingdom will
join this Government in this attempt to save lives. American
missions in neutral countries are being instructed to take
appropriate action along these lines in collaboration with
their British colleagues if possible, alone if necessary.
Since time is of the essence, British missions should be ad-
vised of Foreign Office views promptly. UNQUOTE
Accordingly, you are requested to consult with your British
colleague and either in collaboration with him or alone, as the
circumstances may develop, approach appropriate officials of the
Swiss Government with the request that Switzerland advise the
Hungarian Government that it is prepared to receive Jews released
by Hungary and permitted to go to Switserland. You may assure
appropriate Swiss officials that if Switzerland so advises the
Hungarian Government, Jews arriving in Switmerland from Hungary
will be evacuated to United Nations territory as promptly as
possible and that in the neantime the United States will under-
take to make arrangements for their maintenance and support in
Switzerland. You should inform the Department and the Board
promptly of the results of your consultation with your British
colleague and your approach to the Swise Government.
4. Refer Department's 891 of March 18 and Department's
2236 of July 3. The availability of the visas therein authorised
for Jewish children should not be overlooked. At later date
further communications on this subject will follow.
5. In view of your 4257 of July 5 please consider the
advisability of requesting Rumanie to admit Jews from Hungary and
to afford them refuge in Southeastern Rumania until evacuation can
be effected.
6. Turkey is being requested to admit all persons in enemy
territory holding Palestine certificates and to advise enemy
governments of its willingness to do so.
7. Please keep
Regraded Unclassified
86
- 3 -
7. Please keep Department and Board ourrently advised of
all developments.
THIS IS WRB BERN CABLE NO. 94.
HULL
Regraded Unclassified
87
CABLE TO OFFICER IN CHARGE, AMEMBASSY, ANKARA, AND HIRSCHMANN
Reference Department's
of
- WRB's 81.
Turkish Embassy, washington, now advises that early last
June Turkish Consulate Bucharest was instructed to issue transit
visas to Schleiffer family.
THIS IS WRB ANKARA CABLE NO. 90
$:30 p.m.
August 1, 1944
Regraded Unclassified
E00-869
ANKARA
88
Distribution of
true reading only by
Dated August 1, 1944
special arrangement.
(Secret w)
Rec'd 8:52 a.m. 2nd
Secretary of State,
Washington.
1400, August 1, noon.
FOR PEHLE, WHB, FROM HIRSCHMANN, Ankara's 112.
A group of 40 children, 12 girls and 28 boys be-
threen the ages of twelve and seventeen years, a.ccom-
panied by two adult escorts, arrived in Istanbul on
July 30 by rail from Bulgaria. All were in possession
of Turk transit visas and departed for Palestine on
July 31 by rail. The children were part of a group of
100 for whom lists were submitted many months ago but
whose documentation because of technicalities was only
recently completed. Some of the children all of whom
are Bulgarian had been waiting two years for the com-
pletion of imigration formalities.
Inquiry among the children indicated that an ad-
ditional group of approximately 200 have their docu-
mentation for emigration to Palestine in varying stages
of completion. Efforts are being made here to evacuate
them during August in the same manner as the group of 40.
In view of the statement made to me by Balaban of R
(EMB'S 1371, July 26) I am pursuing this among other
possible steps by the Bulgarians on order to obtain a
concrete indication of the intentions of the Bulgarian
Government in the master of the amelioration of the
conditions of its Jewish citizens and facilitating
without delay the movement of those desiring to depart.
According to information received in Istanbul the
Jewish Community of Rousse in Bulgaria has been desig-
nated by the Bulgarian Government as the agency which
is to concern itself with the preparation of Jews
desiring to emigrate to Palestine. Until now the Bul-
garian regulations did not permit the existence of any
Jewish organization in consequence of which all steps
for emigration had to be undertaken for individuals
by attorneys at large fees. The designation of the
Rousse Jewish Community for this purpose may indicate
a first step in a more orderly emigration of Jews from
Bulgarie.
KELLEY
HTM
Regraded Unclassified
89
CABLE FROM WAR REFUGEE BOARD TO KELLEY FOR HIRSCHMANN, ANKARA.
The War Refugee Board is sending the following cable to
Ambassador Harriman in Moscow:
QUOTE THe War Refuges Board has received the following cable
from its representative in Bern.
INNERQUOTE Recently received urgent appeal from Mixed Relief
Commission of ICRC based on reports from de Steiger ICRC dele-
gate Bucharest regarding plight several thousand Soviet refu-
gees who have been foroed leave their homes by retreating
German Army. 5500 such refugees are in Transylvania 1200
Tatars Province of Dobrudjia and many more thousands in other
provinces of Rumania. Their situation is extremely precarious
they have no right to work and no relief for them has been or-
ganized. ICRC appeals for funds purchase pharmacoutical pro-
duots clothing Switzerland and to supply their delegates on
spot with money to purchase foodstuffs and fuel. ICRC dele-
gates have already approached Rumanian Government in attempt to
secure work permits for these people. I forward this appeal to
you for any helpful action you feel might be undertaken. END
OF INNERQUOTE
The War Refugee Board is anxious to do everything possible
to arrange for aid for these refugees if they are bona fide Soviet
victims of enemy oppression. It is suggested that inquiry be made
of the appropriate Russian officials whether the Russian Government
has any information concerning the plight of these refugees and also
whether the Russian Government has any specific suggestion as to the
manner in which the War Refugee Board could assist in ameliorating
their condition. Meanwhile the Board is requesting its representa-
tive in Ankara to investigate and report concerning the situation dis-
closed by the ICRC cable. UNQUOTE
Please investigate and report to the Board any information which
you may obtain concerning this situation.
This is War Refugee Board cable to Ankara No.
89
2,30 p.m.
August 1, 1944
MSargoy/MJMarks:dh 7/31/44
Regraded Unclassified
90
CABLE TO AMERICAN EMBASSY, MOSCOW
Please deliver following message from War Refugee Board to
Mr. Jerome Davis, Hotel Metropole, Moseow:
QUOTE Thanks your cable July 4 stop Kindly forward
through American Embassy and War Refuges Board report and
list your possession also conorete suggestions regarding
ways and means forwarding relief to Jews liberated regions
Rumania. Dr. Stephen S. Wise, World Jewish Congress, New
York. UNQUOTE
We are advised that the July 4 cable referred to reads as
follows:
"Spent four days liberated regions Roumania in-
vestigating conditions Jews stop Have names ad-
dresses Three hundred seventy eight including ad-
dresses relatives American stop Believe helpful
if Jewish Congress provided some relief Jews
Roumania My address Hotel Metropole Moscow. Jerome
Davis."
12:45 p.m.
August 1ₖ 1944
LSLesser:tmh 7/31/44
Regraded Unclassified
91
CABLE TO AMBASSADOR HARRIMAN AT MOSCOW
The War Refugee Board would appreciate any information that
you can obtain through official channels with respect to numbers and
condition of Jews found in areas liberated by Soviet armies. The
Board would also appreciate any information such sources will dis-
close concerning treatment of civilian populations including Jews
during enemy occupation.
12:45 p.m.
August 1, 1944
LSLesser:tmh 7/31/44
Regraded Unclassified
92
CABLE FROM WAR REFUGEE BOARD TO AMBASSADOR HARRIMAN, MOSCOW
The War Refugee Board has received the following cable from
its representative in Bern:
QUOTE Recently received urgent appeal from Mixed Relief Commis-
sion of ICRC based on reports from de Steiger ICRC delegate
Bucharest regarding plight several thousand Sovist refugees who
have been forced leave their homes by retreating German Army.
5500 such refugees are in Transylvania 1200 Tatars Province of
Dobrudjia and many more thousnads in other provinces of Rumania.
Their situation is extremely precarious they have no right to
work and no relief for them has been organized. ICRC appeals for
funds purchase pharmaceutical products clothing Switzerland and
to supply their delegates on spot with money to purchase foodstuffs
and fuel. ICRC dolegates have already approached Rumanian Govern-
ment in attempt to securework permits for these people. I forward
this appeal to you for any helpful action you feel might be under-
taken. UNQUOTE.
The War Refuges Board is anxious to do everything possible to
arrange for aid for these refugee if they are bona fide Soviet victims of
enemy oppression. It is suggested that inquiry be made of the appropriate
Russian officials whether the Russian Government has any information concerning
the plight of these refugees and also whether the Russian Government has any
specific suggestion as to the manner in which the War Refugee Board could
assist in amelioration their condition. Meanwhile the Board is requesting
its representative in Ankara to investigate and report concerning the situa-
tion disclosed by the ICRC cable.
2:30 p.m.
August 1, 1944
MSargoy/MJMarks:dh 7/31/44
Regraded Unclassified
NOT TO BE RE-TRANSMITTED
93
SECRET
OPTEL No.250
Information received up to 10 A.M. 1st August 1944.
1. NAVAL
On 29th and 30th German batteries bombarded COURSELLES;
A British Monitor and a Dutch Gunboat retaliated on battery
positions.
na30th/31st considerable E-boat activity between CAP
D' ANTIFER and assault area. One E-boat set on fire; one of our
MTB' S damaged. A British Destroyer damaged a E-boat. Same night
one mine sweeper and landing craft sunk by mines off NORMANDY.
Satisfactory progress reported in mine clearance of CHERBOURG
Harbour.
Mediterranean on 26th. the first Liberty ships were
berthed in ANCONA harbour. One 27th/28th
U,S. MTB' S engaged enemy convoy GULF OF GENOA and torpedoed coaster
off SPEZIA. On 27th a British Submarine attacked an escorted convo
of 4F Lighters off TOULON, one being sunk, another probably sank.
Pacific On 30th a U.S. force landed at CAPE SANSAPOR or.
West coast NEW GUINEA under cover of Naval bort-
ardment. MIDDLEBURG and AMSTERDAM Islands were occupied. In
attack on convoy off BeachYHead reported yesterday, 5 ships each
just over 7,000 tons, torpedoed; one sank, one reached port, ane
was beached and two are beached awaiting tows.
2. MILITARY
Normandy Further satisfactory progress on both U.S. and
British fronts. U.S. troops entered AVRANCHES
at 8 p.m. 30th and captured two bridges over the river intact.
GRANVILLE was also captured and further north an advance of about
2 miles resulted in capture of TORIGNY SUR VIRE. Attack on right
of British 2nd Army going well; our armour has reached high ground
immediately west of LE BENY BOCAGE.
Russia Russians have further advanced SW of PSKOV and
have captured JALGAVA, MARIAMPOLE and have etered
KOVNO West of DVINSK they have again advanced up to 10 miles.
In the central sector they have captured SIEDLCE and LUKOV and
are between 12 and 15 miles from WARSAW on East, North-east and
South East. Further Russianadvances are also reported west and
south of PRZEMYSL.
3. AIR
Western Front 31st. More than 3,000 offensive and
escort sorties. Escorted heavy bombers
bombed objectives FRANCE and GERMANY as follows:
Bomber Commande FRANCE Railway Centre, JOIGNY 595 tons, Supply
dumps of RHEIMS 470, Naval vessels LE HAVRE 295. U.S. 8th
Air Force: FRANCE, airfields LAON and CREIL, total 165 tons.
GERMANY, MUNICH 1340; LUDVIGSHAVEN 1110, Aero engine factory and
airfield north of MUNICH 150. In FRANCE bombing was well grouped
at all aining points but in GERMANY it was carried out by instrumen
Escorted medium bombers attacked 7 bridges south and west of
NORMANDY battle area 305 tons. Results where seen good to excell-
ent. German casualties 2 destroyed in the air and 18:1:12 on the
ground. Ours 20 bombers, 5 fighters missing.
31st/lst. Aircraft despatched: 3 flying bomb launching
sites 97 (one missing), Flying bomb supply dump FORET DE NIEPPE
105 (one missing); Sea mining 4. Preliminary reports: launching
sites, bombing generally well concentrated; supply dump, good
concentration on and around markers, through cloud.
Italy 30th. 319 bombers and fighters (2 missing) attacke
communications ets, in battle area and west of RAPALLO RUMANIA.
31st. 5 oil targets at PLOESTI and BUCHAREST bombed by Fortresses
and Liverators 710 tons. Enemy casualties 31:1:14, ours 5 bombers
4 fighters missing.
Regraded Unclassified
94
THE UNDER SECRETARY OF THE TREASURY
WASHINGTON
August 2, 1944
TO MRS. KLOTZ:
The Secretary telephoned me at my home
last evening about seven-thirty to get the
final results of subscriptions to Series E
bonds in the Fifth War Loan. After I told
him that we had slightly exceeded our quota
of $3 billion, he asked me to send the follow-
ing message through the White House to the
President:
"For the President from the
Secretary of the Treasury.
"I am very happy to be able to
inform you that the 5th War Loan
brought in over 20 billion dollars
to the Treasury, which was more than
4 billion in excess of our goal.
"We also exceeded our quota of
3 billion for 'E' bonds.
"You may want to send me a. message
which I can give to the American
Public in your behalf."
DWB
FORVICTORY
BUY
UNITED
STATES
WAR
BONDS
AND
STAMPS
Regraded Unclassified
95
THE WHITE HOUSE
WASHINGTON
2 August 1944
MEMORANDUM FOR:
Mr. Daniel N. Bell,
The Under Secretary of the Treasury.
This memorandum will confirm a message re-
ceived orally by Lieutenant Collins last evening.
For your information, this message was released from
the Map Room at 9:25 p.m., 1 August 1944.
There is quoted below the text of the message
as sent:
"For the President from the Secretary of
the Treasury.
"I am very happy to be able to inform
you that the 5th War Loan brought in over
20 billion dollars to the Treasury, which
was more than 4 billion in excess of our goal.
"We also exceeded our quota of 3 billion
for 'E' bonds.
"You may want to send me a message which
I can give to the American Public in your be-
half."
Richard Park, Jr.
RICHARD PARK, JR.
Colonel, GSC
copy to Hujs 96 at
T
ADDRESS OFFICIAL COMMUNICATIONS TO
THE SECRETARY OF STATE
WASHINGTON, D.C.
22
farm 8/3/14 -
DEPARTMENT OF STATE
WASHINGTON
August 2, 1944
Dear Henry:
I am enclosing a paraphrase of a telegram from
Harriman in which, I think, you will be interested.
Sincerely yours,
Check
Assistant Secretary.
Enclosure:
Paraphrase of telegram
from Harriman.
FORDEFENSE The Honorable
Henry Morgenthau, Jr.,
BUY
Secretary of the Treasury,
UNITED
STATES
Washington 25, D.C.
SAVINGS
BONDS
AND STAMPS
Regraded Unclassified
97
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMEMBASSY, Moscow
TO:
Secretary of State, Washington
DATED:
July 29, 1944, 3:35 a.m., 30th
NUMBER:
6039
Today, I expressed to Vyshinski my Government's
gratitude for the decision of the Soviet Government
to increase its subscription to the International
Bank of Reconstruction and Development, and also
for the Soviet Delegation's co-operation during the
Financial and Monetary Conference. Vyshinski
replied by expressing the Soviet Government's appre-
ciation of the friendly relations which prevailed
between their delegation and that of the United
States, and for the courtesies which the Soviet
Delegates had received.
HARRIMAN
302530
shp
AA SUANCI
Regraded
Mr. Dillow Clipping sent to
98
=
Hajr ot form 8/3/44
August 2, 1944.
Dear Mr. Players
Mr. Morgenthau is at his New York
State form for a few dawn. and I an there-
fore seknovledging-your thought in sending
his a clipping of the very readable column
in which you mention the Bretten Voeds
experience, and the press conference after
his return here. I want to thank you both
for what you said in this column, and for
your thought in seeing that Mr. Norgenthan
received a copy. of course, I shall are
to 18 that this is sent to his at cass.
Sincerely yours,
(Signed) H. S. Klotz
1. s. Niets.
Private Secretary.
Mr. William 0. Player, sr.,
1857 National Press Building,
Fourteenth and , Streets, N.V.,
Washington, D. c.
GEF/dbs
Regraded Unclassified
New York Post
99
JUL 28 1944
Washington Memo
By Charles Van Devander and William O. Player Jr.
Now That We've Sold Monetary Plan
To Rest of World, How About US?
Washington, July 28.
When the U.S. delegation to the United Nations monetary con-
at Bretton Woods succeeded. against great obstacles,
in pushing through an agreement with 43 other countries for an
international currency-stabilization fund and world bank, only half
its work was done. The other-and quite possibly the more difficult
-half will be to sell the merits of the proposed fund and bank to
the American public itself: 1. e., to push
the necessary enabling legislation
through Congress.
If the experience of Bretton Woods
still applies, It'll be almost entirely an
educational job.
As we pointed out here during the
conference, a very large percentage of
the opposition which it encountered at
its outset, the confusion which marked
its early stages and the criticism still
being voiced in certain quarters was
based upon pure ignorance.
And, as the few who were really
in the know gradually managed to beat
the big idea into the brains of the
many who hadn't been able-or per-
haps simply hadn't wanted-to get it
theretofore, it was remarkable to
SECY MORGENTHAU
watch the erstwhile opponents and
critics cast off their doubts and suspicions, one by one, and finally
fall into line.
Sponsors of the monetary plan feel sure that, if it can be put
across in the same comprehensible way to the public and to Con-
gress, there'll be no difficulty in getting the needed legislation.
But how to put it across-how to overcome the opposition of
Senators and Representatives who possibly jumped to stubporn
conclusions weeks ago on the basis of some editorial they read about
Uncle Sam "pouring more money down the rat-hole," "swapping
good currency for bad," "playing Santa Claus again," etc.-isithe
real problem.
Regraded Unclassified
New York Post
99
JUL 28 1944
Washington Memo
By Charles Van Devander and William O. Player Jr.
Now That We've Sold Monetary Plan
To Rest of World, How About US?
Washington, July 28.
When thee U. S. delegation to the United Nations monetary con-
at Bretton Woods succeeded, against great obstacles,
in pushing through an agreement with 43 other countries for an
international currency-stabilization fund and world bank, only half
its work was done. The other-and quite possibly the more difficult
-half will be to sell the merits of the proposed fund and bank to
the American public itself: 1. e., to push
the necessary enabling legislation
through Congress.
If the experience of Bretton Woods
still applies, It'll be almost entirely an
educational job.
As we pointed out here during the
conference, a very large percentage of
the opposition which it encountered at
its outset, the confusion which marked
its early stages and the criticism still
being voiced in certain quarters was
based upon pure ignorance.
And, as the few who were really
in the know gradually managed to beat
the big jdea into the brains of the
many who hadn't been able-or per-
haps simply hadn't wanted-to get it
theretofore, it was remarkable to
SECY MORGENTHAU
watch the erstwhile opponents and
critics cast off their doubts and suspicions, one by one, and finally
fall into line.
Sponsors of the monetary plan feel sure that, if it can be put
across in the same comprehensible way to the public and to Con-
gress, there'll be no difficulty in getting the needed legislation.
But how to put it across-how to overcome the opposition of
Senators and Representatives who possibly jumped to stubborn
conclusions weeks ago on the basis of some editorial they read about
Uncle Sam "pouring more money down the rat-hole," "swapling
good currency for bad," "playing Sarita Claus again," etc-isithe
real problem.
Regraded Unclassified
New York Post
100
JUL 28 1944
Yesterday, at the first press conference which Secretary Mor-
geithau has held since his return to Washington, we asked himlif
any sort of "sales" program was being worked out.
Morgenthau jokingly replied that he believed he was the only
one of the Treasury crowd who had recovered sufficiently from the
rigors of Bretton Woods to come back to work as yet-and that
therefore it was a little too early to say anything about that phase.
From other sources, though, we hear that very definite plans
to familiarize Congressmen with the projects and to clarify any
lingering doubts still in their minds are already afoot; and that
both the Treasury and State Depts. have selected from among their
Bretton Woods alumni several outstanding experts who, after Con-
gress reconvenes, will devote their full time if necessary to testify-
ing before appropriate committees and answering the questions
of individual legislators.
From a monetary standpoint, the Bretton Woods proposals are
by all means the Treasury's babies, and it'll have to nurse them
through the Senate and House Banking and Currency Committees
or any other committees which may assume jurisdiction on strictly
financial grounds.
But, from the broader standpoint of international politics,
they're the State Dept.'s babies, too-and, therefore, not only will
it back up the Treasury to the limit at those hearings but, in the
event the Senate Foreign Relations and House Foreign Affairs Com-
mittees also become involved, it'll probably take over a large share
of the full burden.
Speaking of the rigors of Bretton Woods:
At Secretary Morgenthau's press conference, a woman reporter
for a New York financial sheet complained to the Secretary that
the had been having trouble getting information from some of is
subordinates on a subject in which she was interested.
"You just give 'em that old Bretton Woods look," Morgenthau
suggested, "and I feel sure they'll come across!"
Regraded Unclassified
101
OFFICE
of
FORVICTORY
TREASURY DEPARTMENT
BUY
UNITED
STATES
WAR
WASHINGTON 25
BONDS
AND
THE
SECRETANT
STAMPS
August 2, 1944
MEMORANDUM TO THE SECRETARY
Attached are a group of five memoranda,
the first of which nature have been compiled by
Treasury Procurement.
Because of the condition of the records
in Treasury Procurement Division the reports are not
up-to-date as of the date on which they are issued,
but we anticipate by the end of August that the reports
will be in a more satisfactory condition.
These reports are the twenty-five largest
classifications of commodities and are as follows:
Inventory of Surplus Property On Hand, Inventory of
Surplus Property out on Invitation to Bid, Transit
Account of the Work in Process, Disposals -- both
Transfers and Sales, and also the Analysis of Acquisi-
tions. All of these figures are at the appraised value.
We have recently made an inventory and analysis
of all declarations and documents in each regional
office with the result that by the end of August a
very great improvement will take place in our reports
to you. It will not be too long before we furnish you
with accurate reports rather than unsatisfactory excuses.
Paul Olrich
Assistant to the Secretary
Attachments
Regraded Unclassified
102
July 24, 1944
Analysis of
Transit Account (Work in Process)
(25 Largest Classes)
As of July 15, 1944
Appraised
% of
Description
Class
Value
Total
Furniture & Fixtures
54
2 079 949
11.6%
Apparel, Except Footwear
67
1 608 396
8.9
Motor Vehicles
45
1 555 350
8.6
End Products of Metal Industries,
75
1 344 404
7.5
Except Machinery & Equipment
Aircraft
42
1 266 141
7.0
Fabricated Textile Products,
69
1 246 641
6.9
xcept Apparel
Leather
11
617 652
3.4
Professional & Scientific
58
543 439
3.0
Instruments & Apparatus, Except
Indicating, Recording, &
Controlling
Communication Equipment &
41
543 210
3.0
Electronic Devices
Chemicals
19
533 437
3.0
Textile Basic Manufactures
15
527 390
2.9
Photographic Goods & Processed
55
518 523
2.9
Motion Pictures
Construction, Mining, Excavating
36
500 795
2.8
Related Machinery
Regraded Unclassified
103
Appraised
% of
Description
Class
Value
Total
Nonmetallic Mineral Basic
27
25 577
.7
Products
Electrical Machinery & Apparatus
32
22 297
.6
Fabricated Metal Basic Products
25
21 472
.6
Plumbing & Heating Equipment
51
17 435
.5
Office Machines
38
14 691
.4
Tractors
37
13 400
.4
Nonmetallic Mineral Basic Products 26
10 051
.3
Fibers, Vegetable and Animal,
06
8 102
.2%
Unmanufactured
Kisc. End Products of Manu-
79
7 986
.2
facturing Industries
Nonferrous Metals
24
7 194
.2
Miscellaneous Machinery
39
6 716
.2
All Other
41 771
1.1
Total
3 663 997
100.0
Regraded Unclassified
104
July 24, 1944
0
Inventory of Surplus Property
(25 Largest Classes)
As of July 15, 1944
Appraised
% of
Description
Class
Value
Total
Motor Vehicles
45
6 597 714
21.2%
Furniture & Fixtures
54
2 318 872
7.4
Apparel, Except Footwear
67
2 218 568
7.1
Fabricated Textile Products,
69
2 062 455
6.6
Except Footwear
Leather
11
1 922 411
6.2
End Products of Metal Industries
Except Machinery & Equipment
75
1 629 938
5.2
Footwear
68
1 579 753
5.1
Fabricated Metal Basic Products
25
1 037 801
3.3
Misc. End Products of Manufactur-
79
1 019 368
3.3
ing Industries
End Products of Leather, Except
71
913 560
2.9
Footwear and Luggage
Professional & Scientific
58
645 478
2.1
Instruments, & Apparatus, Except
Indicating & Recording
Small Arms & Components
81
600 189
1.9
Plumbing & Heating Equipment
51
519 586
1.7
ircraft
42
461 886
1.5
Regraded Unclassified
105
Appraised
% of
Description
Class
Value
Total
construction Equipment
36
422 257
1.4
Electrical Machinery & Apparatus
32
411 798
1.3
Textile Basic Manufactures
15
399 334
1.3
General Purpose Industrial
31
396 024
1.3
Machinery
Steel
22
385 096
1.2
Special Industrial Machinery
33
377 666
1.2
Metal Working Machinery
34
341 244
1.1
Rubber End Products, Except
74
284 530
.9
Footwear & Clothing
Chemicals
19
279 569
.9
Drugs & Medicines
65
270 413
.9
Non-metallic Minerals Basic
26
260 665
.8
Products
All other
3 818 858
12.3
Total
31 175 033
100.0
Regraded Unclassified
106
July 24, 1944
Analysis of Acquisitions
July 1 to 15, 1944
(25 Largest Classes)
Appraised
% of
Description
Class
Value
Total
Motor Vehicles
45
1 637 803
21.5%
Fabricated Textile Products,
69
1 616 373
21.2
Except Apparel
Leather
11
710 891
9.4
Apparel, Except Footwear
67
642 948
8.4
Miscellaneous Equipment
59
386 526
5.0
Footwear
68
313 172
4.1
Furniture & Fixtures
54
300 184
4.0
Fabricated Metal Basic Products
25
244 571
3.2
End Products of Metal Industries
75
239 270
3.2
Except Machinery & Equipment
Textile Basic Manufactures
15
155 877
2.1
Construction, Mining, Excavating
36
148 157
2.0
& Related Machinery
Motor Parts
94
89 963
1.2
Miscellaneous End Products of
79
83 342
1.1
Manufacturing Industries
End Products of Leather, Except
71
73 973
1.0
Apparel, Footwear, & Luggage
ulp, Paper, and Paperboard
14
72 673
1.0
Unclassified
107
Appraised
% of
Description
Class
Value
Total
Plumbing and Heating Equipment
51
65 392
.9
Electrical Machinery & Apparatus
32
60 971
.8
General Purpose Industrial
31
59 428
.8
Machinery & Equipment
Iron, and Iron and Steel Scrap
21
50 036
.7
Nonmetallic Mineral Basic Products 27
46 030
.6
Converted Paper Products & Pulp
72
43 485
.6
Goods
Miscellaneous Basic Materials
29
39 820
.5
Ships, Small Watercraft, &
43
35560
.5
Marine Propulsion Machinery
Drugs and Medicines
65
33 087
.4
Aircraft
42
31 774
.4
All Other
414 376
5.4
Total
7 595 682
100.0
Regraded Unclassified
108
July 24, 1944
0
Analysis of Confirmed Inventory Out on Bid
(25 Largest Classes)
July 1 to 15, 1944
Appraised
% of
Description
Class
Value
Total
Motor Vehicles
45
2 213 174
27.6%
Fabricated Textile Products,
69
1 438 650
17.8
Except Apparel
End Products of Metal Industries, 75
738 818 - 9.2
Except Machinery & Equipment
Footwear
68
670 276
8.3
Furniture & Fixtures
54
526 196
6.5
Apparel, Except Footwear
67
324 396
4.0
teel
22
255 667
3.2
Fabricated Metal Basic Products
25
203 149
2.5
General Purpose Industrial
31
148 961
1.8
Machinery & Equipment
Misc. Ammunition & Related
86
128 066
1.6
Products
Air-Conditioning & Refrigeration
52
125 841
1.6
Equipment
Professional & Scientific
58
112 033
1.4
Instruments & Apparatus, Except
Indicating, Recording, & Control-
ling
Nonmetallic Mineral Basic Products 27
97 202
1.2
Construction, Mining, Excavating & 36
89 600
1.1
Related Machinery
Regraded Unclassified
109
Appraised
% of
Description
Class
Value
Total
Small Arms & Components
81
73 143
.9
Rubber End Products, Natural &
74
66 877
.8
Synthetic, Except Footwear &
Clothing
Finished Wood Products, Except
76
62 286
.8
Furniture & Millwork
End Products of Leather, Except
71
60 344
.7
Apparel, Footwear, & Luggage
Miscellaneous Machinery
39
58 355
.7
Coal, Crude Petroleum, & Related
07
54 793
.7
Crude Hydrocarbons
Chemicals
19
50 312
.6
ommunication Equipment &
41
46 207
.6
Electronic Devices
Electrical Machinery & Apparatus
32
45 911
.6
Plumbing & Heating Equipment
51
41 828
.5
Office Machines
38
29 396
.4
All Other
390 222
4.9
Total
8 051 702
100.0
Regraded Unclassified
110
July 24, 1944
Analysis of Disposal
July 1 to 15, 1944
(25 Largest Classes)
Transfers & Sales
Appraised
% of
Description
Class
Value
Total
Motor Vehicles
45
1 607 404
43.8%
Apparel, Except Footwear
67
565 736
15.4
Leather
11
560 546
15.2
Live Animals
01
168 142
4.6
Fabricated Textile Products,
69
125 646
3.4
Except Apparel
Misc. Transportation Equipment
49
77 616
2.1
Qurniture & Fixtures
54
57 663
1.6
Pulp, Paper, & Paperboard
14
57 053
1.6
End Products of Metal Industries,
75
54 058
1.5
Except Machinery and Equipment
Textile Basic Manufactures
15
43 748
1.2
Construction, Mining, Excavating
36
38 546
1.1
& Related Machinery
General Purpose Industrial
31
38 534
1.1
Machinery & Equipment
Chemicals
19
37 328
1.0
Converted Paper Products and Pulp 72
35 285
1.0
Goods
Regraded Unclassified
111
Appraised
% of
Description
Class
Value
Total
Footwear
68
499 399
2.8
Electrical Machinery & Apparatus
32
483 912
2.7
Fabricated Metal Basic Products
25
478 418
2.6
Drugs & Medicines
65
435 315
2.4
Motor Parts
94
412 524
2.3
End Products of Leather, Except
71
324 927
1.8
Apparel, Footwear, and Luggage
Rubber End Products, Natural &
74
254 238
1.4
Synthetic, Except Footwear &
Clothing
Plumbing & Heating Equipment
51
228 804
1.3
misc. End Products of Manu-
79
202 209
1.1
facturing Industries
Finished Wood Products, Except
76
182 740
1.0
Furniture & Millwork
Office Machines
38
120 948
0.7
Converted Paper Products &
72
118 212
.6
Pulp Goods
All Other
1 414 121
7.8
Total
18 041 094
100.0
Regraded Unclassified
112
OFFICE OF
FORVICTORY
TREASURY DEPARTMENT
BUY
UNITED
STATES
WAR
WASHINGTON 25
BONDS
AND
TATAT GEORGIA THE
STAMPS
August 2, 1944
MEMORANDUM TO THE SECRETARY
I am enclosing a list of the
special items valued in excess of $50,000
as of July 31, 1944.
E. Olrich
Assistant the Secretary
Enclosures
Regraded Unclassified
PROPERTY
R DISPOSAL
SPECIAL ITEMS VALUED IN EXCESS OF $50,000
AS OF JULY 31, 1944
Quantity
Unit Cost
Cost to Govt.
1. Textiles and Wearing Apparel
Mosquito Bars, new (with rods)
Rectangular tents of netting.
464,676
$ 5.91
$2 746 097
Excellent quality. Advertising
program under way. Will sell
to anyone at $1.50 each, in-
cluding a set of support rods.
Leggings
Spiral wool and laced canvas
213,280
109 833
types. Old and in poor con-
dition. Holding for opportunity
to put out on bid.
Hats, Army Service
The old-style, broad brimmed
91,928
3.00
275 784
campaign hat. 28,000 were
sold to Boy Scouta at $0.90.
A chain store group in Arizona
bid $0.60 each for lot. Negotiating
for higher price.
113
Regraded Unclassifie
Page 2
Quantity
Unit Cost
Cost to Govt.
:
W.A.C. Caps
76,712
$ 2.20
$ 168 766
Appears to be a salvage
item. Contacts have been
made with uniform houses.
Filter felt (new)
163,086 yds.
2.00
326 172
54 in. to 72 in., rolls.
Samples have been sent to
large users of felt; trying
to negotiate sale.
Cotton Duck, #4
76,741 yds.
115 879
42" fire, water, and weather
resistant. Will probably be
sold to Lend-Lease.
Blankets, cotton
99,479
2.15
213 879
Will be transferred to F.E.A.
Shoes, nurses, new
42,000 pr.
3.00 (av.)
126 000
F.E.A. has offered $2.35 a
pair, which is being considered
while an effort is being made
to get a better price.
114
Regraded Unclassified
Page 3
Quantity
Unit Cost
Cost to Govt.
Cloth, parachute flare
Natural white, pure silk and
502,032 yds.
$ 0.35 (av.)
176 032
Bemberg. Thin. High quality.
Negotiating with converters to
purchase in 50,000 yd. lots.
Rubber gloves
An offer of 35c a pr. has been
441,213 prs.
404 835
received for standard household
type of gloves. The majority are
long-sleeved anti-gas gloves, of
which a sample is awaited.
Slide Fasteners
16 zippers; 500,000 Talon
2,876,828
0.19
537 190
zippers sold to manufacturer at
cost price; negotiations on
remainder with original manu-
facturers.
Shearlings
Tanned sheepskin with wool
800,000 sq.ft.
0.50
400 000
left on. This is remainder
of approximately 11 million
sq. ft. which have been sold
115
to F.E.A. and the trade.
Regraded Unclassified
Page 4
Quantity
Unit Cost
Cost to Govt.
2. Automotive Products
Spare parts, automobile, new and used
Majority are used parts, taken from used
$2 000 000
motors and put in stock. The bulk of
the new parts are obsolete, or are parts
for discontinued military vehicles.
Inspection, boxing, and listing by
manufacturers is going forward prior
to offering them to manufacturers.
Tires, Rubber, Truck & Bus
74,707
1 309 336
Tubes, Inner, Truck & Bus
25,137
New and used. Regions have been
instructed to circularize Federal
Agencies; remainder to be sold to
manufacturers.
3. Furniture
Bed Parts
Springs, metal fabric, heads,
50 000
feet, and side rails, etc. We
are working with bed manufacturers
looking towards repurchase.
116
Regraded Unclassifie
Page 5
Quantity
Unit Cost
Cost to Govt.
Pillows, new and used
Some cotton, some feather,
605,555
$ 0.73
$ 442 055
some. mixed. 134,710 new.
470,845 used. Sales program
being developed.
Mattresses, new and used
182,879 new; 895,415 used.
1,078,294
5.50
5 930 617
Large quantity of used mattresses
were sold to manufacturer to make
cotton picker's bags; the cotton
was disposed of for insulation
purposes. This type of disposal
will be promoted to the fullest
extent possible. Program details
for new mattresses are being
developed.
4. Hardware
Wood screws, brass, new
Bids were opened July 27th.
500 tons
357 OOO
Award data awaited.
1634 items
117
Regraded Unclassified
Page 6
Quantity
Unit Cost
Cost to Govt.
Drums, 55 gallon, used
Includes 12, 14, 16, and 18
130,773
$ 2.50
$ 326 933
gauge drums, in small lots,
located in 11 regions.
Require re-conditioning if
drums are to be used for other
than petroleum products. W.P.B.
requests sale of portion to a
reconditioner for use as lard
kettles.
Gasoline cans, 5 to 10 gal.
1 million are "Jerricans"
2,000,000
2.00 (av.) 4 000 000
similar to our Blitz cans. The
remainder are about equally
divided between 5 gal. cylindrical
cans and 7½ gal. square cans.
The latter are suitable for
shipping paint and may be sold
for such use. A program for
sale of others, for use as designed,
is being formulated.
Snowshoes, emergency
Paratroopers' special type,
22,837
4.25
96 915
of no value for sport purposes.
118
Regraded Unclassified
Page
Quantity
Unit Cost
Cost to Govt.
Snowshoes, used
Serviceable, trail and
11,745
$ 9.00
$ 105 654
bear paw type snowshoes.
New declaration - no
action as yet.
Skiis, laminated, new & used
7 ft. and 7½ ft. hickory, ridge-
5,874 pr.
14.50
85 173
top skiis with steel edges. Painted
white. The longer skiis not
popular for general sport use.
Many interested in purchasing
and method of disposal being
developed.
Shotguns, double barrel, new & used
A great variety of makes, purchased
6,882
40.00 (av.)
275 000
from many sources at start of war
at prices over the present ceiling
prices. All are out of original
boxes. Many are "mail order" brands.
119
Regraded I Inclassifie
Page 8
Quantity
Unit Cost
Cost to Govt.
Furnaces, hot air, oil fired
New, for homes. Cannot be
659
$ 69.25
$ 51 058
installed in new homes because
of fuel regulations. An offer
from the trade is believed on
the way, looking towards use
for replacing worn-out furnaces.
Incinerators, new
Designed for human excretion
34
9,818.00
333 812
but can be used for other
purposes. A hospital and
a park system each have
a slight interest. Apartment
house use may develop.
Smoke generator, vehicular, parts
Motorized generator piping, valves, fittings
277 000
oil filter cartridges, etc., in great
quantities. New declarations just received.
No action, as yet. These are standard parts
that can be sold in hardware stores.
120
Regraded Unclassified
Page 9
Quantity
Unit Cost
Cost to Govt.
Rafts, pneumatic life
Capacity is 5 men - 1000 lbs.
2,185
$ 200.00
$ 437 OOO
Completely equipped, including
carrying case. Many individuals
and some wholesalers and dealers
are interested, at a price. Sales
methods to recover 50° of cost are
being projected. Macy is selling
identical rafts (rejects purchased
from manufacturer) for $69.00.
Scabbards, bolo
An obsolete scabbard for a
114,290
$ 1.60
190 864
bolo knife. Made of hickory,
duck covered, trimmed with
calfskin, with web belt.
Has no value except for use
with a particular knife none
of which is available.
12.
Regraded Unclassified
Page 10
Quantity
Unit Cost
Cost to Govt.
5. Medical and Hospital Supplies
Surgical & Dental Instruments,
Medicines & Supplies
Mostly non-standard, obsolete,
$1 846 000
or deteriorated. Includes $52,228
in N.Y. Depot, $250,000 in Louisville
Depot, and $100,000 dental supplies
at Perry Point, Md. Bid invitations
are being prepared for Louisville stock.
Disposal policy for non-standard items is
being formulated.
Talc, (decontaminating agent)
A coarse grade of talc in 42 and
2900 tons
$ 100 000
50 lb. packages. An equal quantity
was sold last week at $5.00 a ton
for small packages and $8.75 for
50 lb. package. Must be sold in
30 days or Army will withdraw and
throw it away to get the storage space.
Hydrogen Peroxide, 8%
In lb. bottles. Samples are
445,600 lbs.
0.35
$ 155 960
being tested to determine utility
in beauty trade and as a bleaching
agent for textiles.
122
Regraded Unclassif
Page 11
Quantity
Unit Cost
Cost to Govt.
Foille (burn preparation)
A proprietary preparation for
10,800 gal.
$ 9.50
$ 102 600
treatment of burns; use dis-
continued by Army. Put up
in gallons and quarts. Effort
is being made to sell it back
to its manufacturer.
Dichlorimine T. (Antiseptic)
World War I item, called Dakin's
298,646 pts.
1.67
498 738
Antiseptic. Has no marketable
value. Has oil base that may be
rancid. Being tested by American
Pharmaceutical Ass'n.
6. Paper and Wood Products
Ammunition Boxes, wood
Small size, fastened with
85,000
0.75 (est)
63 500
wing nuts. Bids opened
last week. Award data
awaited.
123
Regraded Unclassifie
Page 12
Quantity
Unit Cost
Cost to Govt.
7. Machinery
Construction Machinery, heavy
All in inventory; all used. Cost
2555
$1,000 (av.)
$2 555 000
estimate is probably high. The
general condition of the equip-
ment is poor.
Shoes for Tractor Treads
New "grousers" (shoes to be bolted 43,853
3.00
131 559
to the flat tracks of crawler type
tractors to give traction.) These
are standard replacement parts -
enough for 700 tractors. Will
be offered to manufacturer of tractor
for which they are designed.
Ice Grousers, new
Ice gripping shoes to be attached 76,726 pieces
2.70
207 160
to special rubber tired treads
of high speed military tractors.
Each weighs 6 lbs. A tractor
needs 296 pieces. There is no
known application on standard
machines; no market except for
scrap.
124
Regraded 1 Inclassifie
Page 13
Quantity
Unit Cost
Cost to Govt.
Disc Wheels for Gun Carraige
An offer has been made by a
7,417
$ 12.00 (est)
$ 89 OOO
distributor interested mainly
in the tires. It is being
evaluated pending decision in
regard to disposing of the tires
as part of the regular tire and
tube program.
Diesel Engines, Complete
Air cooled, nine cylinder,
131
2 300 000
radial type. Army is returning
money to manufacturer, who
thought he had repurchased the
engines for $22,000. New disposal
arrangement in process.
Platform trucks, steel, new
Steel trucks on casters, designed 13,287
75.00
996 525
to move airplane engines undergoing
repairs. Will be offered on public
sale.
125
Regraded Unclassifie
Page 14
Quantity
Unit Cost
Cost to Govt.
8. Equipment
Cameras, Aircraft
Each camera has great variety
96
$ 307 386
of collateral equipment. Obsolete
type. Physical inspection being
made. Informal negotiations with
Fairchild Camera Co. in process.
9. Electrical Products
Batteries, drycell and packs
50 types, varying quantities,
(over)
50 000
ranging in cost from $.05 to
$5.80 each. Over-age for Army
use. Large percentage now
on invitations-to-bid. Survey
letter to regions now in process.
126
Regraded Unclassifie
Page 15
Quantity
Unit Cost
Cost to Govt.
10. Miscellaneous Products
Imprinting Machines, new
An Addressograph plate press,
52,636
21.95
$1 052 720
portable, used to obtain impression
of soldier's "dog tag" in the field.
Four oil companies studying possibility
of using device in service stations
to obtain impression of customers'
"Charge-A-Plates". Manufacturer now
showing interest in re-purchase.
Belt pockets for Cartridge Clips
Web pocket with fastener. A
1,000,000
.10
100 000
radio advertiser has taken option
on lot after purchasing a small
lot at $0.06.
Spurs, new and used
Radio advertiser's decision
261,000 pr.
1.40 (av)
365 400
is to take balance for
novelty "give away". Contacting
Chicago office for final sale.
TOTAL
$32 790 342
127
Regraded Inclassifie
SURPLUS USED ARS REPORT
For 7 Days and Period Ended July 29, 1944
(Period Began Jan. 1, 1944
7 Days to July 22
Period of Date
Total Used Cars Declared
103
3488
Less Declarations Withdrawn
4
68
Less Loans to Other Federal Agencies
-
19
Less Transfers to Other Federal "
6
10
547
634
Net Used Cars Declared for Sale
93
2854
Less Used Cars Sold
46
1989
Balance of Used Cars on Hand
865
ANALYSIS OF INVENTORY
Inspected and Ready for Sale
531
Not Inspected
334
ANALYSIS OF DISPOSAL ACTIVITY
Inventory
Inventory
Declarations
Disposals
End of Period
Change
Period ending July 1
2864
2013
851
7 Days to July 8th
41
260
632
-219
7 days to July 15th
290
266
656
t 24
7 Days to July 22nd
190
28
818
/162
7 Days to July 29th
103
56
865
t 47
128
Regraded Unclassifie
SURPLUS MOTORCYCLES REPORT
For 7 Days and Period Ended July 29, 1944
(Period Began Jan.1, 1944)
7 Days to July 22
Period to Date
Total Motorcycles Declared
744
5644
Less Declarations Withdrawn
0
1
Less Loans to Other Federal Agencies
o
0
Less Transfers to Other Federal Agencies
0
0
290
210
Net Motorcycles Delcared For Sale
744
5434
Less Motorcycles Sold
622
4523
Balance of Motorcycles on Hand
906
ANALYSIS OF INVENTORY
Inspected and ready for sale
736
Not Inspected
170
906
ANALYSIS OF DISPOSAL ACTIVITY
Inventory
Inventory
Declarations
Disposals
End of Period
Change
Period Ending July 1
4518
4102
416
7 Days to July 8th
26
0
442
t 26
7 Days to July 15th
289
1
730
t 288
7 Days to July 22nd
67
13
784
t 54
7 Days to July 29th
744
622
906
X 122
129
Regraded Unclassified
SURPLUS TRV Y REPORT
For 7 Days and Period Ended July 29, 1944
(Period Began Jan.1, 1944)
7 Days to July 22
Period to Date
Total Trucks Declared
545
22049
Less Declarations withdrawn
33
881
Less Loans to Other Federal Agencies
0
125
Less Transfers to Other Fed.Agencies
54
87
2531
3537
Net Trucks Declared for Sale
458
18512
Less Trucks Sold
1135
12071
Balance of Trucks on hand
6441
ANALYSIS OF INVENTORY
Inspected and ready for sale
4419
Not Inspected
2022
6441
ANALYSIS OF DISPOSAL ACTIVITY
Inventory
Inventory
Declarations
Disposals
End of Period
Change
Period Ending July 1
20311
10300
10011
7 days to July 8th
293
1150
9150
-857
7 days to July 15th
417
1083
8488
-666
7 days to July 22nd
483
1853
7118
-1370
7 days to July 29th
545
1222
6441
-677
130
Regraded Unclassified
131
Aut
August 2, 1944 Secret
Dear Mr. White:
The situation here has been comparatively quiet during the last
week in that there have been no major military developments and no
overt political developments, while the economic situation is practically
unchanged. There have, however, been a number of behind-the-scenes
developments which are of considerable interest and importance. Thus,
according to a reliable American source, negotiations between the
Kuomintang and the Communists have completely collapsed and the sugges-
tion is made that one of the basic causes for the present political mess
is that the liberal and left-wing elements in Free China (within and
without the Kuomintang) are completely disgusted with the Gimo and demand
his retirement from the political scene as a prerequisite for any agree-
ment. The Gimo is, of course, unwilling to make this sacrifice and the
impasse continues.
A story being whispered around town these days is that T.V. Soong
approached the Russians on the desirability and possibility of his going
to Moscow to discuss Chinese-Russian relations. The Russians are supposed
to have replied that they did not think the present time was suitable
for such discussions. The anti-T.V. circles interpret this as a Russian
refusal to deal with him, while the more objective Americans say that it
is an indication of Russia's displeasure with China, particularly with the
failure of the Kuomintang-Communist negotiations and with the manner in
which Chinese official circles have spread anti-Russian propoganda such
Regraded Unclassified
132
- 2 -
as the existence of a secret Russian-Japanese agreement which has made
it possible for Japan to withdraw about 12 to 15 divisions from the
Manchurian border.
The other day I was told in "strictest confidence" (by a Chinese)
that about 6 or 7 days ago, the Gimo sent a cable to Kung ordering him
to return home and not to stay for the political discussions. The "secret"
became a public rumor after a few days, although when I passed it on to
the Embassy it was still unknown to them since I had gotten it the day
after it was supposed. to happen. Of course, I do not know whether it is
true or not, although the Embassy here saw fit to cable the information
to State.
Another "most secret" story that was whispered to me is that General
Stratmeyer was forced down over the "hump" and is being held for ransom!
Only one person told me this "story".
One of the really interesting and significant developments here has
been the use of the technique in the past month by the Chungking Govern-
ment of "shanghaing" men off the streets here to be sent into the Army.
In effect, it means that only the poorest and least influential are taken
since anyone can buy his way out by paying the required "equeeze", while
people of influence or with influential connections are freed after they
have dearly established their identification. It resulted in riots and
bloodshed, but it has quieted down in the last week. It went practically
unnoticed in the press and has not even been a subject of discussion
among the Americans here.
Regraded Unclassified
133
- 3 -
I am enclosing a memorandum which I prepared on the sales of
checks and transfers by the United Clearing Board here. You might be
interested in glancing at it. Gauss is very concerned about U.S.
governmental employees here purchasing these checks and transfers and
making exchange profits of 60 to 70 per cent.
I still have not heard from the office since I have been here. I
do hope that by the time you receive this letter, it will have been
possible for you to have informed me of your plans for me.
Regards to the Division,
Sincerely yours,
(signed) Irving
(Rec'd August 12, 1944)
Regraded Unclassified
134
DEPARTMENT OF STATE
UNRESTRICTED
A-173
DIVISION OF
3:00PM
1944 AUG 3 PM 5 05
August 2, 1940
COMMUNICATIONS
AMERIBASY,
AND RECORDS
(LIAISON)
CHUNGRING.
WOFRIEDMAN FROM THE SECRETARY OF THE TREASURY
Reference your 591 of April 4 and our 781 of June 6.
Since June 2 Treasury has licensed specific transfers
from the account with the National City Bank of New York
of the United Clearing Board, Chungking, to blocked
accounts in the names of persons in China with domentic
banks and business concerns of the following mounts or
the dates indicated: June 2, 13,000; June 14, 50,000;
June 30, 201,000, of which 250,000 was poid to Bank of
Ohine, New York Agency for account Control Bank of China;
and July 1, 100,000; moking a total of 454,000.
Cill July 5 Treasury authorized issuance of n blanket
license in following terms to National City Bank, New
York in remeet to the oneration of the account of the
United Clearing Board Chunghing:
QUOTE You are heroby authorized to:
1. Receive deposits in U.S. dollars into the
blooked account of the United Clearing Bonze of
Regraded Unclassified
135
Chunglary A-18-2-
Mission, Educational and Relief Agencies, Chungking, from
the headquarters in the United States of various recognized
American mission, educational and relief agencies operating
in Free China and participating in the operation of such
Board, provided such deposito consist solely of the Coller
equivelent of funds to be transferred to China for the pur-
pose of providing for the bonn fide and official operating.
administrative, educational, religious and philenthrooic
purposes in Free China of such American mission, educational
or relief opencion; and
2. Transfor fundo from such account on the instructions
of the United Clearin Board, Chuncking, to blocked accounts
nov existing or herenfter to be opened with domestic banks
02' resutable business concerns 1thin the United States,
provided such blocked nonounts are maintained in the names
of those norpons 1thin Free Chino the have provided to the
nited Clearing Bonrd. Chunghing, the Chinese dollar ocuiva-
lent of the amount of such U.S. doller transfers.
Regraded Unclassified
136
chungbing
-3-
A-173
You are required to file calendar quarterly
reports recording the total amount of transfers
from such account for each month of each calendar
quarter, and to maintain your records in such
wanner that you could provide won request the
name, amount and domostic bank or business concern
to which payment MOS made, in respect to individual
transfers from such account effected under this
license. UNITED
In accordance with the last sentence of 591 of
April 4 you should advise the Comminsion for Control of
Foreign exchange Assets of the foregoing. Treasury also
advising Kung and Chi.
Stettinius acting
GL
FAA:GL:db
8/2/44
Regraded Unclassified
137
DEPARTMENT
OUTGOING
DIVISION OF
OF
COMMUNICATIONS
STATE
TELEGRAM
August 2, 1AND RECORDS
This telebrem must be
before being
11 a.m.
communicated to anyone
other quan X Governmental
egency. (SE RET 0)
text of this meacage must
For security the
AMERIBEST,
be closely sharded,
CHUNGKING, CHINA.
(LIAISON)
1027
AND RECORDS
COMMUNICATIONS
1944 AUG 4 AM II I
DIVISION OF
DEPARTMENT OF STATI
FOR FRIEDMAN FROM TREASURY
(1) Treasury would appreciate following information
on gold market (re 8 of your 1231 of July 17 and your 1269
of July 22):
(a) Net July daily sales and how much they rose
toward end of month.
(b) Existing government stocks of gold in China.
(c) Gold price movements during July.
(a) Impact, if any, of recent sales on note issue
and prices.
(e) Probable impact on price of gold end general
price situation of institution of forward sales of gold.
Who would gain from such sales?
(2) Above information desired primarily for Chungking
market, but information on other sizeable markets also
desired if and when available.
STETTINIUS
(Acting)
(GL)
FMA:GLtdb
8/1/44
Regraded Unclassified
DUPLICATE
138
AIR MAIL
unrestricted
London, August 2, 1944
No. 17252
Subject: Transmitting Letter for Executive Director of
War Refugee Board.
The Honorable
The Secretary of State,
Washington.
Sir:
1/ I have the honor to transmit herewith a letter from
the intergovernmental Committee on Refugees for delivery
to Mr. John N. Pehls, Executive Director of the War Refugee
Board.
Respectfully yours,
For the Ambassador:
Howard Bucknell, Jr.,
Minister-Counselor.
Enclosure:
1/ Letter.
SHB:dm
Regraded Unclassified
139
Following is message from Emerson to Phole:
"We have just received through Polish Legation in Lisbon and
Polish authorities here a detailed report dated Juyl 7 brought by
exchanged British internee on recent tragic developments in Vittel
including 260 names of Polish Jens holding South American nationality
certificates classified by issuing country with indication as to
whether and when each person was deported or whether still in Vittel.
Since most of them apparently hold Palestine Certificates also the
Jewish Agency here has wired Geneva to try to ascertain whereabouts
and condition of deportees. Only hope for either those already deported
or those still in Vittel seems to be their inclusion in actual exchange
list for Pulestine or American hemisphere. After consultation with
Jewish Agency and British government exchange authorities we are
convinced that everything possible is being done here and in Jerusalem
to include Palestine Certificate holders in next exchange for which
arrangements have been started and to notify German government
exchange authorities of their inclusion. However Jewish Agency in
Geneva reports that Germans prefer South American exchange and Jewish
Agency here is asking Jewish Agency in New York to present matter to
Warr Refugee Board which may already have had the recent reports through
its Lisbon representative. In vien of the Board's long and active
interest in this matter and particularly the information contained on
pages 8 and 9 of its report for the week of June 26 to July 1 we are
sending by airmail copies of materials mentioned for whatever action
may be found possible."
Regraded Unclassified
COPY
The people on the following list arrived in the camp of Vittol, part in
January 1943, and the rest in May 1943. They are all Jews of Polish origin
possessing certificates of citizenship of the various South American States
issued by the consulates of the respective States, mainly from Berne.
These certificates wuro generally given to cover an entire family, with
even the detail of names.
In December 1943 all Jewa in the camp of Vittel had to give up their identity
papers, which were never returned to then. All other British and American
interness remained in possession of their papers.
From January 1944 certain families received certificates from a Zionist
Organization in Geneva saying that they were on first or second repatriation
list for Palestine. But as these had not been ratified by London, they were
considered worthless by the German Authorities.
In March nearly all these people were moved at 24 hours notice to an
hotel outside the precincts of the camp and deprived of all communication with
the camp for a week, until a passage had been constructed. The Commandant
assured the Camp Committee that this was purely an internal measure, but
added that unless their papers were recognised within a short time, these
people would all be considered as "Staatenlos" and sent back to Poland to
share the fate of the other Jews there. Messages were sent to Switzerland
and also to London to acquaint the powers of the situation.
lbs. Tamara Schorr was guaranteed of their safety by the Commandant, to
it was on her word that they agreed to move. It was as a result of the
broken promise that Mrs. Schorr finally committed suicide.
Four weeks later the gate connecting the hotel with the camp WAB closed
and the people told that they were being sent to Drancy, a Jewish scrting camp
near Paris - from which regular deportations of French and other Jews were made
to Poland. There were 17 attempts of suicide, of which 3 were fatal, officially.
Mrs. Thompson, head of the British Nursing Service, informed no there were 4
others, but names unknown, the others being transported to hospital. The scenes
of pame and despair are indescribable as also the consequent impression on the
camp.
The first transport for Drancy took place on the 18th April and comprised
173 nen, women. and children, including infants in arms. They left in all train
with windows boarded. It was subsequently learned that they left Trancy on the
29 th April for an unknown destination.
Recognition had maamile arrived from Chile, but as yet no news has been
received of the subjects.
Four weeks later on 16th May, the second transport took place, when all
except 2 or 3 families and the absolutely untransportable cases in hospital, of
which there were 10, ware taken. Thus for example, one person whose both
Regraded Unclassified
-2-
COPY
legs were paralysed in consequence of attempted poisoning, was removed
on stretchers, etc. etc.
& fortnight after time second transport, on the 6th of June, the Commandent
informed the Committee that d. collective list for repatriation to Palestine
had arrived for the whole group and had sen accepted by Berlin, which was
now only waiting for the ratification from Lendon. The musber of this
collective certificate is 438. Up to the coment of our departure from Vittel
no such affirmation had been received from London. Shortly after case
further news that each South American State had accepted all those papers as
Dona fide, thus placing their holders on an equal statur with any other
American internes. In spite of this, the Commandant said that he had an
order from Berlin to deport those yet remaining in camp, which I believe to
have been done about the 18th July. The Commandant also the Committee
that they had been sentte Bergen Belson, a camp to which some 2,000 similar
cases had been sent in May 1943. But this was proved to be untrue as a
transport arrived from there and had never seen them.
The Commandent also said that neither the recognition of the papers nor
the certificate for exchange to Palestine would have any validity in the eyes
of the German authorities unless an exchange aither to Palestine or to South
America actually took place. It 18 therefore essential and most urgent now
to find those people, who are probably in same Jewish Camp in Upper Silesia
(such as Birkenau, Auschwits, Sesnowits, Kattowics, Fredorf, Innstruck,
Treblinks, Belses, Tramiki, Monowits) and to afford *hon the full
protection of the Red Cross and the Protection Powers. This is the only
way of saving even this handful of lives. I a gravity of the situation
cannot be exaggerated neither the urgent noo.. for immediate action.
(Upon M. Akain's recomendation, lint of names net duplicated)
Regraded Unclassified
142
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, London
TO:
Secretary of State, Washington
DATE:
August 2, 1944
NUMBER:
6150
CONFIDENTIAL
Please deliver the message given below to Mr. Pehle,
WRB, at request of the Director of ICO:
A detailed report on recent tragic developments in
Vittel, dated July 7, has just been furnished us by
the Polish Legation at Lisbon, and Polish authorities here.
Report includes the names of two-hundred-sixty Polish Jews
holding Latin American certificates of nationality classified
by issuing country and listed according to whether and when
each person was deported or whether in Vittel yet. Exchanged
British internee brough this report. Telegram has been
sent to Geneva by Jewish agancy here requesting effort be
made to ascertain whereabouts and condition of deportees
since apparently Palestine certificates are held by most of
them also, The only hope for either those deported already
or those still in Vittol seems to be that they be included
in actual exchange list for Palestine or the American hemis-
phere. Exchange authorities of the British Government and
Jewish agency have been consulted and everything possible,
we are convinced, is being done here and in Jerusalem to
include in the next exchange those in possession of Palestine
certificates and to advise German Government's exchange
authorities of the inclusion of these people. As regards
next exchange, arrangements have been begun already. How-
ever, we have been advised by Geneva Jewish agency that
Germans prefer South American exchange, and Jewish agency
here is requesting that matter be taken up with WRB by
Jewish agency New York. WRB may already have been furnished
with recent reports in this regard by its Lisbon representative.
Copies of material mentioned are being forwarded by us via
airmail in view of WRB's long and active interest in this
matter and the information of its report for week ending
July 1, especially pages 8 and 9, for whatever action may
be found possible.
WINANT
DCR:EBH
8/4/44
Regraded Unclassified
113
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Embassy, London
DATED:
August 2, 1944
NUMBER:
6897
CONFIDENTIAL
FROM WAR REFUGEE BOARD TO AMBASSADOR WINANT.
Please refer to your 6005 of July 38 concerning the sug-
gestion made by the IGC Director that the Vatican be asked by
the British and American Governments to intervene with the
German Government for the release of non-Italian vivilian refugees
held in North Italy.
As mentioned in our 5791 of July 24, the American Govern-
ment has made clear to the world its willingmess to cooperate
with other sympathetic governments in finding havens of refuge
for victims of enemy oppression able to leave German occupied
territory. Therefore, Emerson's proposal is completely accept=
able to this Government.
It is suggested that Emerson now discuss this matter with
the British Government and secure its consent to requesting the
Vatican to intervene, on the understanding that the British
will share with the American Government the responsibility of
making arrangements for the maintenance, care and transportation
of the refugees involved in the event that the Vatican's efforts
prove successful.
The Board would appreciate being advised as soon as the
British Government has signified its consent.
STETTINIUS
(Acting)
Regraded Unclassified
August 2, 1944
5:20 p.m.
CABLEGRAM FROM WAR REFUGEE BOARD TO ACKERMANN, AMERICAN CONSULATE GENERAL,
NAPLES, ITALY.
Please refer to your No. 102 of July 29th in reply to our No. 36 of
July 21.
The following is for your information:
It is assumed that you have seen Heathcote-Smith's cable to Emerson of
July 15, copy of which was transmitted to the War Refugee Board by Myron
Taylor as cable No. 237 of July 17, concerning Heathcote-Smith's suggestion
among others that the German Government be requested to release refugees
deported from Allied Italy and to deliver such refugees to Allied authorities
at a North Atlantic port whence they would either be returned to Allied Italy
or taken to temporary havens of refuge elsewhere.
After receiving Taylor's message, the Board cabled Emerson in London
referring to the President's pronouncement of March 24 and his message to
Congress concerning the 1000 refugees, both of which make clear this Govern-
ment's willingness to cooperate with other sympathetic Governments in finding
havens of refuge for all victims of enemy persecution able to leave German-
occupied territory. We also advised Emerson that this Government was prepared
to cooperate in every way with the British and other Governments in facilitating
any feasible plan of action in regard to the matter referred to by Heathcote-
Smith, even though it is quite possible that many of the deportees from Italy
have already been executed. The following is an extract of the Board's cable
to Emerson:
QUOTE It is our view that any approach to the Germans should indicate the
willingness of the allied governments, with due regard to military necessities,
to consider measures for the reception in allied and neutral territory of any
Jews in German occupied territory, and should not be limited to deportees from
Italy. This Government has recently advised the British Government of its
willingness to join in such an approach to the German Government. However, we
are prepared to consider sympathetically any plan designed to meet the Itelian
problem referred to by Heathcote-Smith. In the circumstances it would appear most
feasible for the Intergovernmental Committee to determine the practical problems
involved and discuss the matter with the British Government. UNQUOTE
The Board received & reply from Emerson suggesting that the intervention of
the Vatican be requested by the British and American Governments in approaching
the German authorities with a request that non-Italian civilian refugees held in
North Italy be released. Emerson also suggested that the British and American
Governments assure the Vatican that they would make arrangements for the
maintenance, care and transportation of the refugees involved in the event
that the Vatican's efforts prove successful.
The Board is cabling Emerson that his proposal is completely acceptable to
the American Government and suggesting that Emerson now discuss the matter with
the British Government and secure its consent to requesting the Vatican to inter-
vene, on the understanding that the British will share with the American Govern-
ment the responsibilities indicated by Emerson in the event that the Vatican's
efforts prove successful.
WRB CABLE TO NAPLES NO.
40
MJMarks:AA: 8/2/44
Regraded Unclassified
145
EMBASSY OF THE
UNITED STATES OF AMERICA
Lima, August 2, 1944.
Secret
No. 1009
Subject: Attitude of Foreign Office toward claimants of Peruvian
nationality who were removed from the internment camp
at Vittel, France.
The Ambassador has the honor to acknowledge the receipt of the
Department's instruction no. 3425 of July 24, 1944, with enclosure
relating to claimants of Peruvian nationality who have been removed
from the German internment camp at Vittel, France.
Responsive to the Department's direction that appropriate action
be taken in the sense of the enclosure to the instruction under acknowl-
edgment, the matter was brought to the attention of the Secretary General
of the Foreign Office. Dr. Correa, in perusing the list of claimants,
professed to have no information whatever in regard to any of the seven
persons listed and furthermore observed that no indication of the nature
of documentation to support their claim to Peruvian nationality had been
adduced.
The Foreign Office would be glad to receive information as to the
bases of these persons' claim to Peruvian nationality with a view to
investigation.
711.5
JP/bw
cei Miss Chauncey (For the Sec'y.), Abrahamson, Aksin, Cohn, Drury,
DuBois, Friedman, Gaston, Hodel, Laughlin, Lesser, Mannon, Marks,
McCormack, Pehle, Sargoy, Standish, Weinstein
Regraded Unclassified
146
170-9
Lisbon
Distribution of true
reading only by special
August 2, 1944
arrengement. (SECRET w)
Rec'd 6:49 p.m.
Secretary of State,
Washington.
2386, August 2, 5 p.m.
Recent details which have been sent Board and
Department of apparent stopping of deportation of
Jews from Hungary and relaxation of some anti-Jewish
provisions as well as possible facilities for emigration
bear out statement Apostolic Delegate in Department's 2139,
July 31. This is WRB 133. The important question is
whether these changes are genuine and permanent or
only for some immediate ulterior motive.
NORWEB
HTM
Regraded Unclassified
147
LC - 940
Lisbon
Distribution of
true reading only by
Dated
August 2, 1944
special arrangement
(SECRET W)
Rec'd 8 p.m.
Secretary of State,
Washington.
2383, August 2, 3 p.m.
THIS IS WRB 134
Conference today with Mexican Minister, re-
presentatives Unitarian Committee and consular section
arranged details procedure matter covered Department's
1819, June 25 and 1820, June 26. Consider possible take
care of situation accordance Department's suggestion.
However before granting visas Mexican Minister
must await clarifying telegram from Mexican Foreign
Office which he expects soon. Also, and more
important, he thinks it unwise actually grant visas
until his credentials have been accepted by Portuguese
Government. In this Embassy concurs.
Little time is being lost however as preliminary
security checking by both Mexicans and Americans can
be done in interval. Please ensure no publicity
whatever this project in America.
NORWEB
WTD WFS
Regraded Unclassified
148
MS-6
Lisbon
Distribution of true
reading only by special
Dated
August 2, 1944
arrangement. (SECRET W)
Rec'd 6:50 p.m.
Secretary of State,
Washington.
2393, August 2, 7 p.m.
Sending copies of despatch 789 sent Washington
July 31 to Bern via Swiss pouch with covering letter.
(REURTEL 2145, August 1, This is WRB 135.) Airmail-
ing Department copy of covering letter. Full details
given Department and Board in despatch above re-
ferred to.
NORWEB
JJM HTM
Regraded Unclassified
149
KD-444
Madrid
Distribution of true
reading only by special
Dated August 2, 1944
arrangement. (SECRET-W)
Rec'd 3:36 a.m., 4th
Secretary of State
Washington
2670. August 2, Noon.
Department's 2142, July 29, 9 p.m. crossed the
Embassy's 112, July 28, 8 p.m. to Tangier. repeated
to Department for War Refugee Board as 2624, which
answers it.
RR
WSB
Miss Chauncey (For the Sec'y). Abrahamson, Akzin, Borenstein,
Cohn, DuBois, Friedman, Caston, Hodel, Laughlin, Lesser, Mann,
Mannon, Marks. McCormack, Pehle, Sargoy. Standish, Weinstein,
Cable Control Files, Stewart
Regraded Unclassified
150
SECRET
CABLE TO MINISTER JOHNSON AT STOCKHOLM AND OLSEN
1. Refer Department's 1246 of June 23, WRB's 30, penultimate
paragraph. Alfred Halasz, Budapest, said to be secretary general of
printers' union, suggested by Ignatz Schultz whose name should be used.
2. Express Board's appreciation to Wallenberg for achievements
mentioned in your 2779 of July 25, to WRB number 594. Would appreciate
estimate of cost of operating suggested experimental camp as well as your
views as to the extent to which it might be financed without supplying
free foreign exchange to the enemy. Need of protection would appear to
be proper basis of selection.
3. Refer your 2396 of June 30 incorporating your 12 to Lisbon
of same date. Members of same family have arrived in Switzerland and
Amlegation Bern states:
QUOTE From a reliable source it is stated that the
Jewish director of AKCWSESAUVS I U, one Wilhelm Bielitz,
organized the departure of these persons and is now try-
ing to come here himself. UNQUOTE
Wallenberg may find it advantageous to contact him.
THIS IS WRB STOCKHOLM CABLE NO. 66
2:30 p.m.
August 2, 1944
LSLesser:tmh 7/31/44
Regraded Unclassified
151
KEM-161
Stockholm
Distribution of true
reading only by special
Dated
August 2, 1944
arrangement. (SECRET W)
Rec'd
9:30 a.m., 3 p.m.
Secretary of State,
Washington.
2914, August 2, Midnight.
This is our No. 61 for War Refugee Board.
High officials of the Bulgarian Government have
forwarded written assurances to Chief Rabbi Ehrenpreis
that everything is being done and will continue to
be done to ease the position of Bulgarian Jews. It
will be recalled that Ehrenpreis for many years was
Chief Rabbi of Bulgaria and has important connections.
This information must be kept strictly confidential.
JOHNSON
RR WSB
Regraded Unclassified
152
FBM-160
Steckhelm
Distribution of true
reading only by special
Dated August 2, 1944
arrangement. (SHCRET-W)
Rec'd 9:10 a.m., 3rd
Secretary of State,
Washington.
2915, August 2, 12 P.M.
Following message is for Fabbi Kalmonewitz of
Veadhehst Zela Emergency Committee from Pabbi Welfe.
This is our No. 634 War Refugee Beard. Rescue
operations for our friends in Lithuania impossible
new owing to military situation. Please advise
whether money sent can also be used for general
relief operations in Europe as well as for establishing
religious homes here for Finnish children. Because
congregation here is liberal. foundation of such
homes urgent. Also advise if it will be pessible to
receive further funds for such purposes.
JOHNSON
BB RR
Regraded Unclassified
August 2, 1944
153
10:20 a.m.
SECRET
CABLE TO MINISTER HARRISON AT BERN FOR MCCLELLAND
Please contact Alfred Schaeffer, general manager Union Bank of Switzer-
land, Zurich, personally and tell him orally that Eugene Bogdanffy of Los Angeles
has communicated with you through the War Refugee Board and states that he has been
considerably disturbed by the news of the persecutions in Hungary, that he feels
that he should do as much as he can to help the unfortunate victims of oppression,
end that he relies heavily on Schaeffer to assist him. You should further tell
Schaeffer that Bogdanffy says that he is confident that Schaeffer will give him
all the assistance he can in this purely humanitarian cause. Bogdanffy wants
Schaeffer to know that Saly Mayer will probably contact him and that he can have
complete confidence in Saly Mayer who may want to purchase pengos available in
Hungary against blocked francs or dollars. Such penges will be used solely for
humanitarian purposes and Bogdanffy urges Schaeffer, despite all difficulties,
to arrange with Felix Szentirmay to have such pengos made available by Bogdanffy's
enterprises to whomever Saly Mayer designates. Even before Saly Mayer contacts
Schaeffer, Bogdanffy asks that Scheeffer arrange to have Szentirmay come to Swit-
serland immediately to see Schaeffer ostensibly in connection with the affairs
of Bogdanffy's enterprises. Schaeffer should advise Bogdanffy through you when
Srentirmay is expected so that you can be advised of further matters that Schaeffer
is to take up with him. Bogdanffy particularly desires Schaeffer not (repeat not)
to indicate to Szentirmay until he arrives in Switzerland that Schaeffer has heard
from Bogdanffy.
You should advise Saly Mayer of the foregoing and request him to con-
tact Schaeffer after you have spoken to Schaeffer. Whether or not (repeat not)
Saly Mayer needs any pengos at the present time, he should inquire of Schaeffer
concerning the possibility of acquiring them against france or dollars. Please
keep the Board advised promptly with respect to the effectuation of each of the
foregoing steps.
For your information, Bogdenffy is a Hungerian with substantial in-
terests in several large enterprises in Hungary. Schaeffer or his institution
acts as trustee of these interests, and Szentirmay is the manager of one or more
of such enterprises. You may tell Saly Mayer and Schaeffer that Bogdanffy is co-
operatingwith the Board but such information should not (repeat not) be conveyed
to Scentirmay. Further for your information only, it is expected that 1f Szentirmay
arrives in Switserland, Schaeffer will be asked by you to request Smentirmay in
Bogdenffy's name, to undertake certain action upon his return to Hungary calculated
to alleviate the condition of persecuted peoples. Bogdenffy and Szentirmay are
not (repeat not) Jewish. If Saly Meyer should not (repeat not) wish for any reason
to become involved, you may in your discretion substitute some other suitable per-
son in his role. Furthermore, if the Legation or other American authorities have
any reason to believe that Schaeffer is not a suitable person, do not (repeat not)
contact him, advising the Board of the reason therefor.
THIS IS WRB BERN CABLE NO. 108
LSLesser:tmh 8-1-44
Regraded Unclassified
154
CABLE TO MINISTER HARRISON AND MCCLELLAND, BERN, FROM THE DEPARTMENT, THE
WAR REFUGEE BOARD AND THE FOREIGN ECONOMIC ADMINISTRATION.
Please refer to your No. 4874 of July 29 concerning Sternbuch scheme.
As clearly indicated in Department's No.
of
(WRB No. 106)
and for the reasons indicated therein we concur in your view that it is not
(repeat not) feasible to undertake the transaction in question at this time.
However, in view of the comments contained in paragraph four of your
cable it is feared that you may be under B. misapprehension as to the policy
of the Government of the United States concerning the licensing of financial
operations ina and communications with enemy territory for refugee rescue and
relief purposes. It is to be emphasized that the decision not to undertake
the Sternbuch proposal does not (repeat not) in any way change or derogate
from the licensing policy which has been in effect since prior to the
establishment of the War Refugee Board in January of this year. For your
information and guidance the following is a statement of this Government's
policy regarding licenses for rescue and relief purposes which was communicated
several months ago to the British Government and which has been explained in
person and detail to Mr. Dingle Foot of the MEW.
QUOTE The United States Government, with the approval of the Department
of State, the Treasury Department, and the War Refugee Board, has issued
a number of licenses to private organizations authorizing such organizations
to finance operations in and communicate with enemy territory in an effort
to save the lives of oppressed peoples. The British Government has
already been advised of the basic provisions of these licenses. As the
British Government knows, such licenses permit the acquisition of the
necessary local funds, goods or services from persons in enemy or enemy
occupied territory against payment in free exchange or free currency
notes only if it is not feasible to obtain the local funds by the other
methods which are prescribed.
The United States Government has concluded, in issuing these licenses,
that any danger involved in permitting the enemy to acquire relatively
insubstantial quantities of foreign exchange is far outweighed by the
saging of lives. Experience has shown that the use of money is in many
cases the only means by which refugees can be assisted to escape or
otherwise save their lives, and it is felt that every effort should be
made to see that adequate funds are available for this purpose.
The United States Government is convinced of the need for operations
of this character, in addition to those to be undertaken by the Inter-
governmental Committee in extension of credit operations hitherto
conducted by private organizations.
Regraded Unclassified
155
- 2 -
The United States Government, motivated by humanitarian considera-
tions, intends to continue to follow the policy which it has been
pursuing now for several months in connection with the issuance of
licenses to private organizations. It is most anxious that its efforts
in this regard should not be unilateral, and that the two governments
will be able to follow a common line 80 that there may be full 00-
operation in this matter as well as in the case of operations through
the Intergovernmental Committee.
Accordingly, the United States Government hopes that the British
Government will decide to adopt a similar policy in connection with
authorizing and encouraging the sending of funds by private organizations
to neutral countries for the relief and rescue of victims of enemy
oppression. In this way, the two governments will be able most effectively
to carry out the policy heretofore agreed upon to take all possible
measures, consistent with the successful prosecution of the war, for
the speedy rescue and relief of the oppressed minorities of Europe.
UNQUOTE.
It is important that in continuing and intensifying our humanitarian
efforts to rescue the victims of enemy oppression, you be guided by the policy
indicated. In this connection, your attention is further directed to the
Department's cable of March 15, 1944, No. 856.
THIS IS WRB CABLE TO BERN NO. 109
In view of the fact that the cable which is being answered
is also addressed to Foreign Economic Administration I assume that
you will arrange for clearance with that organisation.
2:30 p.m.
August 2, 1944
JBFriedman:oss 8/1/44
Regraded Unclassified
156
PARAPHRASE OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
AMLEGATION, BERN
DATE:
August 2, 1944
NUMBER:
2657
SECRET
With reference to offer of Hungarian Government to permit
departure of Jews from Hungary (your 4604 of July 19) you are
advised that the British Embassy here presented on July 26 two
cables from the British Foreign Office suggesting that the
matter of surveying and coordinating possible places of refuge
for the Jews from Hungary be referred to the Inter-governmental
Committee. The cables also stated that the possibility of re-
ceiving refugees in Palestine were limited and would have to be
reviewed and also that the capacities of the camps at Casablanca
and Phillipville in Algiers would need to be re-studied. The
Department and the War Refugee Board on July 31 presented a
memorandum for the British Embassy suggesting that the responsi-
bility for dealing with the Hungarian offer rests on the British
and United States Governments particularly and expressing the
judgement that the Intergovernmental Committee cannot act in time
to be effective because of the nedd of consulting other govern-
ments. Included in the memorandum to the British Embassy was
the following draft of a proposed cable to Bern with the request
that the British Government concur in its transmission to Bern
by August 7, 1944 at the latest.
QUOTE Amlegation Bern. The following communication
has been received by the Department from the delegate
in the United States of the International Committee
of the Red Cross. INNERQUOTE We have received today
the following communication from ICRC in Geneva:
The Hungarian Government is willing to make possible
the emigration of certain categories of Jews and has
advised the ICRC of its readiness in this respect.
Very obviously from the viewpoint of maintaining
the principle of neutrality, which in effect is based on
reciprocity, the ICRC feels that the number of emigrant
Jews to be admitted to the United States should be sub-
stantially increased, and that a corresponding number of
entry permits should be accorded.
It would, furthermore, be desirable if the United
States Government would make a public statement on this
subject, indicating the number of entry permits accorded.
The ICRC is of the opinion that such a statement would
impress the Hungarian Government as the visible sign of
a favorable reaction to their decision to cease the perse-
oution of the Jews also on this side. Moreover, the
possibility of an eventual withdrawal of the concession
granted would
Regraded Unclassified
157
- 2 -
granted would be made difficult by a public declaration,
as suggested above, which would at the same time also fore-
stall an attempt on the part of the countries of emigration
to throw the blame for an eventual failure on the countries
of immigration.
The ICRC would like to be informed whether the United
States Government would be willing to transmit and support
this proposal to the Governments of the South American
Republics or whether the ICRC should do so directly.
The ICRC reserves the right to issue a communique
concerning this proposal, which has simultaneously been
submitted to the Government of Great Britain. END
INNERQUOTE.
You should at once request the International Committee
of the Red Cross to advise the Hungarian Government 8.8
follows:
INNERQUOTE The United States Government has learned
through the ICRC of the Hungarian Government's willingness
to permit the emigration from Hungary of certain categories
of Jews. This Government, despite the substantial diffi-
culties and responsibilities involved, has consistently
made clear its determination to take all practicable steps
to resoue victims of religious or political oppression.
In view of the owerwhelming humanitarian considerations
involved concerning the Jews in Hungary, this Government
now repeats specifically its assurance that it will arrange
for the care of all Jews permitted to leave Hungary in the
present circumstances who reach neutral or United Nation's
territory, and will find for such people temporary havens
of refuge where they may live in sffety. these assurances
have been communicated to the governments of neutral
countries who have been requested to permit the entry of Jews
who reach their borders from hungary. This Government
now awaits information concerning the concrete steps to be
taken by the Hungarian Government to carry out its proposal.
END INNERQUOTE.
The above mentioned proposal has also been addressed
to the British Government which is taking parallel action.
Accordingly, you may wish to join with your British
colleague in conveying to the International Committee of
the Red Cross this expression of joint action.
You should indicate to the International Committee of
the Red Cross the opinion of this Government that in view
of the above assurances it is considered unnecessary to
consult the governments of the South American Republica at
this time.
It is urgent
Regraded Unclassified
158
- 3 -
It is urgent that the International Committee of the
Red Cross convey the foregoing representations to the Govern-
ment of Hungary without delay. The cooperation of the
Inter-national Committee of the Red Cross in this matter is
appreciated.
Please advise apromptly of the results of the action
taken by you. UNQUOTE.
In order to prevent any possible misunderstanding it is
repeated that the foregoing draft cable to Bern is now before the
British Government for clearance and concurrence and is sent to
you solely for your information and understanding at this time.
Until you are specifically requested to do so, you are not (repeat
not) to take the action suggested in the cable. However, in hte
meantimet you are authorized to advise the ICRC informally that
the British and United States Governments are inconsultation
on the matter and that a reply will be forthoomig shortly to
the ICRC note.
Repeated to London as 6096, referring to
Embassy's 5956 July 27.
STETTINIUS
(Acting)
Regraded Unclassified
159
CABLE TO MINISTER HARRISON AT BERN AND McCLELLAND
Reference your 4223 of July 3 and the Department's
of
, WRB's 78.
Information has reached the Board that on May 16 further
deportations from Vittel took place. Please male all appropriate
inquiries to determine whether this report is correct. If it is,
please make efforts in the manner outlined in Department's
of
, WPB's 78.
THIS IS WRB BERN CABLE NO. 110
.
5:20 p.m.
August 2, 1944
LSLesser:tmh 8-1-44
Regraded Unclassified
160
CABLE TO AMBASSADOR STEINHARDT, ankara, FOR HIRSCHMANN FROM THE
WAR REFUGEE BOARD.
The Board has been informed that Eri Jabotinsky has a
concrete proposal for evacuating approximately 1,000 refugees
across the Black Sea to Turkey.
It will be appreciated if you will discuss this matter
with Mr. Jabotinsky and ascertain the nature of the proposal
and its feasibility. A report on the proposal and your
decision is requested.
THIS IS WRB CABLE TO ANKARA NO. 91
2:30 p.m.
August 2, 1944
JBFriedman:css 8/2/44
Regraded Unclassified
161
AMT-737
Ankara
Distribution of true
reading only by special
Dated August 2, 1944
arrangement. (SECRET-W)
Rec'd 10:45 p.m., 4th.
Secretary of State,
Washington.
1414, August 2, 8 p.m.
FOR PEHLE WRB FROM HIRSCHMANN
Through an intermediary I have transmitted the
following message to Bulgarian officials:
One. We intend to hold the Bulgarian Government
responsible for the taking without delay of the steps
which Balabanoff informed me would be taken (REEMBS1370,
July 26) with a view to ameliorating the situation of
the Jews in Bulgaria and eliminating all varieties of
persecution and abuse and facilitating by every possible
means the departure of those Jews who desire to
emigrate.
Two. We will not be satisfied until the two
scandalous anti-Jewish laws are completely revoked and we
expect the Bulgarian Government to take steps to this
end with the least possible delay.
Three. In the meanwhile the Bulgarian Government
is expected to be completely lax in the enforcement of
the aforesaid
Regraded Unclassified
162
-2- #1414, August 2, 8 p.m., from Ankara.
the aforesaid laws.
Four. The necessity for the evacuation of Bulgarian
Jewish citizens should be removed without delay and
if
the emigration of such citizens should be the result
of voluntary action and not of a necessity imposed
by discriminatory treatment and laws.
Five. The Bulgarian Government should in its own
interest take steps to rehabilitate its Jewish population
for productive work.
Six. Existing relief agencies in Turkey, with the
assistance of the United States Government will
endeavor within possibilities to provide food,
clothing and economic aid for the rehabilitation of
Bulgaria's Jewish citizenry, and we expect the
Bulgarian Government to give all possible assistance to
this work.
Balabanoff and his intermediaries have emphasized
their urgent desire to do something which could win for
the present Bulgarian Government the good will of the
United States at this special juncture, and have
reported in a pointed way the effect which the absence
of the bombing of Bulgaria since March 20 had had on
the Bulgarian Government and people.
It should be our aim to salvage and to put back
on their
Regraded Unclassified
163
-3- #1414, August 2, 8 p.m., from Ankara.
on their feet as quickly as possible the entire re-
maining 45,000 Jewish population of Bulgaria rather
than to press for the pitifully small sporadic move-
ment of evacuation to Palestine which the circumstances
prescribe at this time. We should emphasize that
people rehabilitated in their own country will become
more useful citizens and not create any postwar
problem.
KELLEY
JT
MRM
Miss Chauncey (For the Sec'y), Abrahamson, Akzin, Borenstein,
Cohn, DuBois, Friedman, Gaston, Hodel, Laughlin, Lesser,
Mann, Mannon, Marks, McCormack, Pehle, Sargoy, Standish,
Stewart, Weinstein, Cable Control Files.
Regraded Unclassified
164
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Embassy, Moscow
DATED:
August 2, 1944
NUMBER:
1835
CONFIDENTIAL
The War Refugee Board would appreciate any infor-
mation that you can obtain through official channels
with respect to numbers and condition of Jews found in
areas liberated by Soviet armies. The Board would also
appreciate any information such sources will disclose
concerning treatment of civilian populations including
Jews during enemy occupation.
STETTINIUS
(Acting)
Regraded Unclassified
165
COPY NO
NOT TO BE RE-TRANSMITTED
SECRET
OPTEL No. 251
Information received up to 10 A.M. 2nd August 1944.
1. MILITARY
First U.S. Army advance has continued. River SELUNE
reached at several points in spite of German resistance and Village
of DUCEY captured. Further East VILLEDIEU LES POELES, strongly
held, was by-passed and BRECEY captured. Groups of Germans between
GRANVILLE and AVRANCHES have been mopped up.
On British front, the armoured thrust S. of CAUMONT
continues successfully. LE BENY BOCAGE and CAHAGNES have been
captured. Heavy fighting has taken place on Canadian Front S. of
BOURGUEBUS.
Russia TUKUMS 30 miles N.W. of JELGAVA and KOVNO recaptur
Russians advance continues W. and N.W. of DVINSK
and S.W. of BIALYSTOK and they are clesing in on WARSAW.
Italy United Kingdom, New Zealand and Indian troops of
8th Army made slight advances S.E. and S. of
FLORENCE
2. AIR OPERATIONS
Western Front 31dt/lst. 664 tons dropped on flying bomb
supply dump and three launching sites.
1st. 806 U.S. and 26 Bomber Command aircraft attacked
objectives NORTHERN FRANCE including 5 airfields, 1110 tons, fuel
dumps and railway bridges 672 and 4 flying bomb launching sites 199.
193 Fortresses successfully dropped supplies to F.F.I. units. In
addition to flying armed recommaissance and patrols, aircraft of
A.E.A.F. dropped 338 tons on bridges and 105 tons on fuel and
ammunition dumps. 4 German aircraft destroyed for loss of 7 heavy
bombers, 3 medium and light bombers and 9 fighters.
Italy and Southern France
31st. 407 light bombers and
fighters It missing) attacked
communications in battle area and airfields in SOUTHERN FRANCE.
Enemy casualties on the ground 15:0:19.
Balkans 30th/31st. 18 Liberators and 34 Wellingtons
mined DANUBE.
German Activity During 24 hours ending 6 A.M. 2nd,
81 flying bombs plotted.
Regraded Unclassified
1
SECRET
166
THE WHITE HOUSE
WASHINGTON
3 August 1944
MEMORANDUM FOR:
The Secretary of the Treasury
The below quoted message has been received
via White House Map Room Communications Channels
at 7:50 p.m. for transmittal to you:
"From the President for the Secre-
tary of the Treasury.
"Reference your message of August 2,
1944. I am very happy to hear that the
Fifth War Loan has passed the 20 billion
mark. This proves that the American
people understand the great objective
of paying a very large percentage of the
cost of this war currently thereby re-
ducing the debt that must be paid in
later years."
Very respectfully,
themy w. Prituan
HENRY W. PUTNAM,
Captain, A. C.
SECRET
167
August 3, 1944
Dear Ed:
Your letter of July 20th has arrived, and I am
sorry that you appeal to me. As you know, the kind of
request you make is entirely up to the War Department.
I feel it would be presumptious of me to request the
War Department to order you home or even to ask that
you be sent to Washington for a conference.
May I remind you that I did not ask you to take
your present position. However, I did ask you if you
would be interested in it, and you stated that you
were very eager to go overseas for several reasons.
Because of the interest which the Treasury Department
had in the matter, I advised the War Department that
I felt you were well qualified for the work.
I can understand your desire to come back home,
but I am very sorry that, under the circumstances,
there is nothing I can do about it. The decision as
to that question is, as you must know, wholly up to
the War Department.
With kind regards,
Sincerely yours,
(Signed) IL Mergenthan, JL
Colonel Edward H. Foley, Jr.,
Headquarters,
Allied Control Commission,
APO 394,
c/o The Postmaster,
New York, New York.
Regraded Unclassified
168
August 3, 1944
Dear Eddie:
Thanks for the draft of the
letter to Ed Foley.
I made several changes, and
I am sending you a copy of the let-
ter which I have sent to Ed.
Sincerely yours,
General Edward S. Greenbaum,
2500 Q Street, N.W.,
Washington, D.C.
Regraded Unclassified
FROM EDWARD S. GREENBAUM
3334 RESERVOIR ROAD
WASHINGTON. D.C.
To Hage
169
"JUST A LINE
Here's c draft. Charge it as
you this proper-
Hope you're having a good
rest.
Pddice
ESG/mt(2)
170
DRAFT
July 31, 1944
Dear Ed:
Your letter of July 20th has arrived, but I am unable
to understand why you are appealing to me. As you know, the
matter is entirely up to the War Department. I feel that it
would be presumptuous for me to request the War Department to
order you home, or to ask that you be sent to Washington for a
conference.
I did not ask you to take the position. I asked you
if you would be interested in it and you stated that you would
Ican circumstances there nutting
do about it
be very eager for it. Because of the interest which the Treasury
Department had in the matter, I advised the War Department that
I felt that you were well-qualified for the work.
I can well understand your desire to come back home
but I am very say that meler the
but, as you well know, there are many thousands of others who
have a like desire. At any rate, the decision as to that ques-
tion is wholly up to the War Department.
With kind regards
Sincerely yours,
Regraded Unclassified
copy to Higo at fan 7/25/84-
Jen. Granbaun
EDWARD H. FOLEY, JR.
10 THOMPSON CIRCLE
WASHINGTON, D.C.
7/31/98-
HEADQUARTERS
171
ALLIED CONTROL COMMISSION
APO 394
POSTMASTER N.Y. CITY
20 July 1944.
Personal and Confidential
Dear Mr. Secretary,
Henry Grady, who, at his request, has been relieved as Vice-
President of the Economic Section of the Allied Control Commission,
to return to private life, has volunteered to carry this letter
to you.
The situation here, which I wish to bring to your attention,
briefly is this. Dallas Dort of the State Department is here as
the head of a small mission to accomplish the demilitarization of
ACC. This he hopes to be able to do within the immediate future.
As I understand it, the military personnel who are not given
civilian status for continued service in Italy will be gradually
released and used in other places.
When you asked me to take this position last summer you
dicated, when the civilians took over I could come home, or if
so desired I could go on to another country. Frankly I want
very much to come home. But this is what worries me. Gen.
Hilldring has indicated to Col. O'Dwyer (Mr. Grady's successor,
who, I understand is here only for a couple of months) that he
regards me highly and is anxious to transfer me to another theatre
in the immediate future. For this reason I appeal to you.
As you know, Emily has never taken kindly to my being away,
although up to now she has been a good soldier about it. As the
six months (after my talk with you I indicated this to her as the
probable duration of my absence) has lengthened into a year she has
become more distressed. Frankly, I am worried if I am not home
by the time the children go off to school in September, when, for
the first time she will be left entirely alone, her health
172
EDWARD H. FOLEY, JR.
10 THOMPSON CIRCLE
WASHINGTON, D.C.
- 2 -
may be affected. Naturally, I am most anxious not to put this
additional strain on her and me unless it is absolutely necessary.
In any event, after a year overseas, I feel, for many reasons,
I am qualified to perform more effective work in Washington.
No one is more aware than I am of the delicate nature of
the situation which exists between the Treasury and the War
Department. For what it is worth here is a possible solution,
which I would like to put up to you. Now that the end of the
war in Europe is in sight, if you could see your way clear to
request my services in connection with the preparations for hand-
ling post war financial problems I would ask the War Department
to give me inactive status, As I shall be forty on my next
birthday this could be accomplished under existing regulations.
If this suggestion does not appeal to you, I hope you will be
willing to ask the War Department to order me to Washington for
a conference so that I may make other plans. The printing of a
new lira currency which has been under discussion with the Bank
of Italy and the anti inflation program which we have submitted
to Washington would seem to provide an adequate basis for such a
request. In any event some plan should be worked out for the
utilization of the former Treasury personnel in uniform who are
now here and the substitution of qualified civilians to take
their places.
I have had a good deal of hesitation about writing in this
manner and I never would have done it if it were not for the
understanding of my situation which you exhibited in our conver-
sation last summer. No matter what happens I want you to know I
am grateful for the opportunity you have given me to serve abroad
during the past year, which from my standpoint as well as from the
standpoint of the Treasury, I consider has been worthwhile.
Henry Grady is sympathetic to my desires in this matter and
has indicated a willingness to give you additional background if
you should want it.
173
EDWARD H. FOLEY, JR.
10 THOMPSON CIRCLE
WASHINGTON, D.C.
- 3 -
Please give my best regards to Mrs. Morgenthau and my friends
in the Treasury and forgive me for bothering you with a personal
problem in these times.
As Ed ever,
Hon. Henry Morgenthau Jr.
The Secretary of the Treasury,
Washington, D.C.
174
OFFICE OF
FORVICTORY
TREASURY DEPARTMENT
BUY
UNITED
0
STATES
WAR
WASHINGTON 25
BONDS
AND
STAMPS
THE SECRETARY
August 3, 1944
MEMORANDUM TO THE SECRETARY
Attached is the experience record
of Homer Hilton, Head of the General
Products Division, for the Surplus Property
Division.
ELOWA E.L. Olrich
Assistant to the Secretary
Attachment
Regraded Unclassified
175
August 3, 1944
HOMER HILTON
(HEAD OF THE GENERAL PRODUCTS DIVISION, TREASURY SURPLUS
PROPERTY DISPOSAL ORGANIZATION)
Business Experience:
1918 - 26
Director and General Sales Manager
Winther Motor Truck Company
Kenosha, Wisconsin
(Manufacturer of 4-wheel drive trucks)
1927 - 29
Sales Manager
Bell & Howell Company
Chicago, Illinois
(Manufacturer of professional and
amateur motion picture cameras,
equipment and accessories)
1930 - 33
Sales Manager
Agfa Onsco Corporation
Binghamton, New York
(Manufacturer of photographic equip-
ment, materials and films)
1934 - 37 President
Mono Film Company
New York, New York
(Manufacturer of motion picture films)
1938 - 39
Retired (on farm)
Regraded Unclassified
- 2 -
176
HOMER HILTON
August 3, 1944
1940 to date
Sales and Advertising Manager
Argus, Inc.
Ann Arbor, Michigan
(Manufacturer of cameras and
accessories, telescopes and
spottingscopes)
Offices Held:
Director
National Association Motor Truck
Manufacturers 1922 - 26.
Director
National Photographic Manufacturers
and Distributors Association.
Member
National Photographer Dealers
Association
Member
Master Photo Finishers and Dealers
Association
Member
Industry Advisory Committee
Photographic Equipment
War Production Board
Regraded Unclassified
177
OFFICE
OF
VICTORY
TREASURY DEPARTMENT
BUY
UNITED
STATES
WAR
WASHINGTON 25
BONDS
AND
THE
SECRETARY
STAMPS
August 3, 1944
MEMORANDUM TO THE SECRETARY
There was appropriated the sum of $6,250,000
for expenditures of the Surplus Property Division of
Treasury Procurement for the fiscal year, July 1, 1944,
to June 30, 1945. It was understood that this was an
estimate only and on proper determination of the require-
ments of the Division the Appropriations Committee would
consider further appropriations for this work.
A careful estimate of the anticipated expendi-
tures of Treasury Procurement for the five months begin-
ning July 1 and ending November 30, 1944, indicate that
this sum will be exhausted and that further appropriations
will be necessary.
It is estimated that a deficiency appropriation
of $13,750,000 should be requested. This Division is
preparing a deficiency request for such sum from a budget
prepared under my direction.
Olrich
Assistant to the Secretary
Regraded Unclassified
178
as
August S, 1944.
Dear Mr. Ninekley:
For the Secretary. who is away from
Washington, I an acknowledging your letter
of August 1, which forwarded a copy of the
confidential report on the distribution of
the previsions of the Contract Settlement
hot of 1944, according to responsibilities
assigned to the members of the Director's
staff by the Director. and to other agencies
by the Act. I an sure the Secretary will go
through the folder with much interest, and
would wish no to thank you for your courtesy
in sending this material to him.
Sincerely yours,
(Signed) H. S. Klotz
MIN.
H. s. Klots,
Private Secretary.
Mr. Robert H. Ninckley,
Director, Office of Centract Settlement,
Washington, D. C.
GEF/dbs
Regraded Unclassified
179
OFFICE OF CONTRACT SETTLEMENT
WASHINGTON, D. C.
Robert H. Hinckley
DIRECTOR
August 1, 1944
Hon. Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D. C.
Dear Mr. Secretary:
I believe you will be interested in
the enclosed report on the distribution of the
provisions of the Contract Settlement Act of
1944 according to responsibilities assigned
to the members of the Director's staff by the
8
Director, and to other agencies by the Act.
The report contains the tentative organization
chart for the Office of Contract Settlement
which was distributed at the July 21st meeting
of the Joint Contract Termination Board.
Sincerely,
Robert H. Hinckley
Regraded Unclassified
180
Preliminary
For Internal Use Only
CONFIDENTIAL
CONTRACT SETTLEMENT ACT OF 1944
DISTRIBUTION OF THE PROVISIONS OF THE ACT ACCORDING TO
RESPONSIBILITIES ASSIGNED TO THE MEMBERS OF THE DIRECTOR'S
STAFF BY THE DIRECTOR AND TO OTHER AGENCIES BY THE ACT.
Prepared for
Robert H. Hinckley
by
Martin Taitel
CONFIDENTIAL
July 19, 1944
Regraded Unclassified
181
CONFIDENTIAL
INDEX
THE
PAGE NO.
Organization Chart
1
Table Showing Distribution of Provisions of the Act
2
Congress
3
Contract Settlement Advisory Board
3
Secretary of Contract Settlement Advisory Board
3
Training Adviser
3
Financing Adviser
4
Terminations Adviser
7
Plant Clearance and Property Adviser
14
Public Information Adviser
17
Progress and Statistics Adviser
17
Legal Adviser
18
Accounting Adviser
18
Appeal Board
18
Clerk of the Appeal Board
18
Provisions of the Act Generally Applicable to the Whole
Office of Contract Settlement and to Other Agencies
(Not Shown Elsewhere)
21
Courts, Including Court of Claims
29
General Accounting Office
32
Smaller War Plants Corporation
33
Notes
34
CONFIDENTIAL
July 19, 1944
Regraded Unclassified
OFFICE OF CONTRACT SETTLEMENT
-
RETTLEMENT ADVIDENT -
L - - - appeals -
La - with the
DIRECTOR
Section of the M.
Number - -
laking - estret
1. Metere MS -
to the reles provides
a Originative or - police
of providers later - -
determinations - sentirent tap-
1
startion entitstag
I I
DEPUTY DIRECTOR
CLAIMS
- - -
visas a - - Bord,
- -
PROCESS a STATION ADVISOR
ACCOUNTING INVISOR
FILE INFORMATION
- - with respect
Advisor - Streetor että -
advise the with papert
the Review with -
to legal -
apart to Classimation of
- - payment of eritle-
- assesting -
- - tendaction.
- - - memorary reports.
- - ACCORDANTING
- -
- means
name
TRAINING
FINANCIAL ANTER
UNITED
PLANT - PROPERT
- - - n°
Mries the threetor due
the -
apart - - promotion of -
part to policies, principles,
respect to policies, giv-
Advices the Hower visa -
tradelar of personnel for tar-
article, provider, ed stan-
styles, metivis,
apart se policies, principles,
settlement - deteria
denta (mesing the
and standarda governing the
article, providures, - state
fineering.
of Interia financiag
agincies is the
darte givending - spenty -
the - leving any
prode of apenty - hir
mm/ from the of -
das . claims,
to -
of to
for the of and -
verhartee - state meri.
ON TRANKING
tracts.
. FINANCISO
- nam us-
e -
MMS -
atill le of representatives of - internated et the Custrast
Settlement arrisary learn, will art. unler the of - of - New
staff, will advise euror ate nr - end will - consider recommendations be the
Regraded Unclassified
- - - sective.
a 21
21 a
20 5
19
C, a, e, 20 H
18 o
"
I P 13
11
5
21 d
18 d, e
a BT
18 a
17
b, 16 of o
16 a, d,
9 ST
15 a
I ET
e 13
13 d 3
13 d 2
13 c 4
13 C 3
13 C 2
13 C 1
a ET
13 a
12
8, 9, 10
6, 7
3, 4
a Γ
2 a
1
.
26, 27
a 25
25 A. c
22, 23, 24
21 c
a 20
20 a
Section
Shown for information only.
H
H
Congress
Contract Settlement
H
Board
Training
H
Adviser
M
H
H
Financing
H
H
Adviser
Terminations
H
M
H
M
H
M
H
X
X
H
M
of
M
M
X #
M
H
H
CONFIDENTIAL
Adviser
Plant Clearance &
M
H
X
X
X
H
Property Adviser
THE MEMBERS OF THE DIRECTOR'S STAFF BY THE DIRECTOR AND TO OTHER AGENCIES BY THE ACT.
DISTRIBUTION OF THE PROVISIONS OF THE ACT ACCORDING TO RESPONSIBILITIES ASSIGNED TO
CONFIDENTIAL
Public Information
H
Adviser
H
Progress and
X
Statistics Adviser
Legal
Adviser
Accounting
Adviser
H
H
M
H
H
H
of
M
H
Me
Appeal
Board
Provisions Gen.
H
H
x
X
X
M
H
M
M
H
H
Applicable
Regraded Unclassified
Courts, Including
X
H
H
H
of
M.
M
M.
Court of Claims
General Accounting
M
H
H
Office
Smaller War
X*
H
Plants Corp.
183 -2-
CONFIDENTIAL
184
DISTRIBUTION OF THE PROVISIONS OF THE ACT ACCORDING TO RESPONSIBILITIES ASSIGNED
TO THE MEMBERS OF THE DIRECTOR'S STAFF BY THE DIRECTOR AND TO OTHER AGENCIES BY
THE ACT.
SURVEILLANCE BY CONGRESS
Section 2 (a)
Sec. 2. (a) To assist the Congress in appraising the administra-
tion of this Act and in developing such amendments or related leg-
islation as may further be necessary to accomplish the objectives
of the Act, the appropriate committees of the Senate and the House
of Representatives shall study each report submitted to the Congress
under this Act and shall otherwise maintain continuous surveillance
of the operations of the Government agencies under the Act.
Section 2 (b)
See also Public
(b) In January, April, July, and October of each year, the Direc-
Information,
tor shall submit to the Senate and House of Representatives a quar-
terly progress report on the exercise of his duties and authority
Progress and
under this Act, the status of contract terminations, termination
Statistics
settlements, and interim financing and such other pertinent informa-
tion on the administration of the Act as will enable the Congress
to evaluate its administration and the need for amendments and
related legislation.
CONTRACT SETTLEMENT ADVISORY BOARD
Section 5
Sec. 5. There is hereby created n Contract Settlement Advisory
Board, with which the Director shall advise and consult. The Board
shall be composed of the Director, who shall net B.S. its Chairman, and
of the Secretary of War, the Secretary of the Navy, the Secretary of
the Treasury, the Chairman of the Maritime Commission, the Admin-
istrator of the Foreign Economic Administration, the chairman of
the board of directors of the Reconstruction Finance Corporation,
the Chairman of the War Production Board, the chairman of the
board of directors of the Smaller War Plants Corporation, and the
Attorney General or any alternate or representative designated by
any of them. The Director shall request other Government agencies
to participate in the deliberations of the Board whenever matters
specially affecting them are under consideration.
SECRETARY OF CONTRACT SETTLEMENT ADVISORY BOARD
Note: Maintaine the - necessary services for the Board,
TRAINING ADVISER
Section 21 (a)
Seo. 21. In addition to his other functions under this Act, the
Director shall-
(a) promote the training of personnel for termination settle-
ment and interim financing by contracting agencies, war contrue-
tors, and financing institutions;
CONFIDENTIAL
Regraded Unclassified
CONFIDENTIAL
185
FINANCING ADVISER
Section 8
Sec. 8. (a) It is the policy of the Government, and it shall be the
responsibility of the contracting agencies and the Director, in accord-
ance with and subject to the provisions of this Act, to provide war
contractors having any termination claim or claims, pending their
settlement, with adequate interim financing, within thirty days after
proper application therefor.
(b) Each contracting agency shall, to the greatest extent it deems
practicable, make available interim financing through loans and dis-
counts, and commitments and guaranties in connection therewith, in
contemplation of or related to termination of war contracts. Where
interim financing is made by advance payments or partial payments,
it shall. insofar as practicable, consist of the following:
(1) An amount equal to 100 per centum of the amount payable, at
the contract price, on account of acceptable items completed prior to
the termination date under the terms of the contract, or completed
thereafter with the approval of the contracting agency; plus
(2) An amount equal to 90 per centum of the cost of raw materials,
purchased parts, supplies, direct labor, and manufacturing overhead
allocable to the terminated portion of the war contract; plus
(3) A reasonable percentage of other allowable costs, including
administrative overhead. allocable to the terminated portion of the
war contract not included in the foregoing; plus
(4) Such additional amounts, if any, as the contracting agency
deems necessary to provide the war contractor with adequate interim
financing. (5) In lieu of the costs referred to in clauses (2) and (3) of this
subsection, where a detailed ascertainment of such costs is not suit-
able to the conditions of any war contractor and is apt to cause
delay in the obtaining of interim financing by him, that portion of
such interim financing shall be equal to an amount not greater than
DO per centum of the estimated costs which are allocable to the
terminated part or parts of the war contract or group of war con-
tracts, and are ascertained in accordance with such methods and
standards as the Director shall prescribe.
(6) There shall be deducted from the amount of such interim
financing any unliquidated balances of advance and partial payments
theretofore made to such war contractor, which are allocable to the
terminated war contract or the terminated part of the war contract.
(e) The Director shall prescribe (1) the types of estimates, certifi-
cates, or other evidence to be required to support such interim
financing; (2) the terms and conditions upon which such interim
financing shall be made including the use of standard forms for agree-
ments with respect to such interim financing to the extent practicable;
(3) the classes of cases in which such interim financing shall be
refused: and (4) such methods of supervision and control over such
interim financing as he deems necessary or desirable to assure ade-
quate and speedy interim financing to subcontractors of the war
contractor.
(d) In case of an overstatement by any war contractor of the amount
due on his termination claim or claims in connection with any interim
financing under this Act, such contractor shall pay to the United States,
as a penalty, an amount equal to 6 per centum of the amount of the
overstatement, but the Director may suspend or modify any such
penalty if in his opinion the imposition thereof would be inequitable.
Any penalty may be deducted from any amounts due the war con-
tractor upon such termination claim or claims, or otherwise, or may
be collected from the war contractor by suit, The obligation to pay
any penalty imposed and to repay any interim financing made or
assumed by the United States under this Act shall constitute S& debt
due to the United States within the meaning of Revised Statutes,
section 3466 (31 U. C,, se, 191).
(e) Any contracting agency may allow any advance payments,
ance of a war contract. to be used for payments and expenses related
previously made or authorized by it in connection with the perform-
to the termination settlement of such contract, upon such terms and
conditions as it deems necessary or appropriate to protect the interest
CONFIDENTIAL
of the Government.
Regraded Unclassified
-5-
CONFIDENTIAL
186
FINANCING ADVISER (CONT.)
Section 8 (Cont.)
(f) No interim financing shall be made by any contracting agency
under this Act unless the terms of such financing provide for the
liquidation by the war contractor of all loans, discounts, advance pay-
ments, or partial payments thereunder not later than the time of final
payment of the amount due on the settlement of the termination claim
or claims of the war contractor involved or such time thereafter as
the contracting agency deems necessary for the liquidation of such
interim financing in an orderly manner.
(g) Any contracting agency may settle, upon such terms and condi-
tions as it deems proper, any claim or obligation due by or to the
Government arising from or related to any interim financing made,
acquired, or authorized by it. Any interim financing made, acquired,
or authorized by any contracting agency before the effective date of
this Act shall be valid to the extent it would be authorized under the
provisions of this Act if made after its effective date.
Section 9
Szo. 9. (a) Any contracting agency may make advance or partial
payments to any war contractor on account of any termination claim
or claims, and may authorize, approve, or ratify any such advance
or partial payments by any war contractor to his subcontractors, upon
such conditions as it deems necessary to insure compliance with the
provisions of subsection (b) of this section. Each contracting agency
shall make final payments from time to time on partial settlements
or on settlements fixing a minimum amount due before complete
settlement, or as tentative payments before any settlement of the
claim or claims.
(b) Where any such advance or partial payment is made to any
war contractor by any contracting agency or by another war contractor
under this section, except a final payment on a partial settlement, any
amount in excess of the amount finally determined to be due on the
termination claim shall be treated as a loan from the Government to
the war contractor receiving it, and shall be payable upon demand
together with a penalty computed at the rate of 6 per centum per
annum, for the period from the date such excess advance or partial
payment is received to the date on which such excess is repaid or
extinguished. Where the advance or partial payment was made by a
war contractor and authorized, approved, or ratified by any contract-
ing agency, the war contractor making it shall not be liable for any
such excess payment in the absence of fraud on his part and shall
receive payment or credit from the Government for the amount
of such excess payment.
Section 10
Sec. 10. (a) Any contracting agency is authorized-
(1) to enter into contracts with any Federal Reserve bank. or
other public or private financing institution, guaranteeing such
financing institution against loss of principal or interest on loans,
discounts, or advances or on commitments in connection there-
with, which such financing institution may make to any war con-
tractor or to any person who is or has been engaged in performing
any operation deemed by such contracting agency to be connected
with or related to war production, for the purpose of financing
such war contractor or other person in connection with or in con-
templation of the termination of one or more such war contracts
or operations; and
(2) to make, enter into contracts to make, or to participate with
any Government agency, any Federal Reserve bank or public or
private financing institution in making loans, discounts, or
advances, or commitments in connection therewith, for the pur-
pose of financing any such war contractor or other person in con-
nection with or in contemplation of the termination of such war
contracts or operations.
CON FIDENTIAL
187
-6-
CONFIDENTIAL
FINANCING ADVISER (CONT.)
Section 10 (Cont.)
(b) Any such loan. discount, advance, guaranty. or commitment in
connection therewith may be secured by assignment of. or covenants
to assign, some or all of the rights of such war contractor or other
person in connection with the termination of such war contracts or
operations, or in such other manner as the contracting agency may
prescribe.
(e) Subject to such regulations as the Board of Governors of the
Federal Reserve System may prescribe with the approval of the Direc-
tor, any Federal Reserve bank is authorized to net. on behalf of the
contracting agencies, as fiscal agent of the United States in carrying
out the purposes of this Act.
(d) This section shall not limit or affect any authority of any con-
tracting agency, under any other statute, to make loans, discounts, or
advances, or commitments in connection therewith or guaranties
thereof.
Section 15 (b)
See also
Terminations,
(b) For the purpose of making termination settlements or interim
Plant Clearance
financing any Government agency is authorized to rely upon such
certificates of war contractors as it deems proper and to permit war
and Property
contractors and other persons to rely upon such certificates without
financial liability in the absence of fraud on their part.
Section 18 (a)
See also Terminations,
Plant Clearance and
SEC. 18. (a) The Director shall establish policies for such super-
Property
vision and review within the contracting agencies of termination
settlements and interim financing as he deems necessary and appro-
printe to prevent and detect fraud and to assure uniformity in admin-
istration and to provide for expeditions settlements, For this pur-
pose he shall prescribe (1) such records to be prepared by the con-
tracting agencies and by war contractors B.8. he deems necessary in
connection with such settlements and interim financing; and (2) the
records in connection therewith to be transmitted to the General
Accounting Office. He shall seek to reduce the amount of record keep-
ing, reporting, and accounting in connection with the settlement of
termination claims and interim financing to the minimum compatible
with the reasonable protection of the public interest. Each contract-
ing agency shall préscribe forms for use by war contractors in con-
nection with termination settlements and interim financing to the
extent it deems necessary and feasible,
Section 20 (b)
See also Terminations,
Plant Clearance and
(b) Any contracting agency may prescribe the amount and kind of
evidence required to identify any person as a war contractor, or any
Property
contract, agreement, or purchase order ns a war contract for any of the
purposes of this Act. Any determination so made that any person is n.
war contractor, or that any contract, agreement, or purchase order is n
war contract, shall be final and conclusive for any of the purposes of
this Act.
Section 21 (c)
See also Terminations,
(e) promote decentralization of the administration of termina-
Plant Clearance and
tion settlements and interim financing by fostering delegation
Property
of authority within contracting agencies and to war contractors,
to the extent he deems necessary and feasible; and
CONFIDENTIAL
-7-
CONFIDENTIAL
189
TERMINATIONS ADVI
Section 6
Sec. 6. (a) It is the policy of the Government, and it shall be the
responsibility of the contracting agencies and the Director, to provide
war contractors with speedy and fair compensation for the termination
of any war contract, in accordance with and subject to the provisions of
this Act, giving priority to contractors whose facilities are privately
owned or privately operated. Such fair compensation for the termi-
nation of subcontracts shall be based on the same principles as com-
pensation for the termination of prime contracts.
(b) Each contracting agency shall establish methods and standards,
suitable to the conditions of various war contractors, for determining
fair compensation for the termination of war contracts on the basi:
of actual, standard, average, or estimated costs, or of IL percentage of
the contract price based on the estimated percentage of completion of
work under the terminated contract, or on any other equitable basis,
as it deems appropriate. To the extent that such methods and stand-
ards require accounting, they shall be adapted, so far as practicable, to
the accounting systems used by war contractors, if consistent with
recognized commercial accounting practice.
(c) Any contracting agency may settle all or any part of any
termination claim under any war contract by agreement with the war
contractor, or by determination of the amount due on the claim
or part thereof without such agreement, or by any combination of
these methods. Where any such settlement is made by agreement,
the settlement shall be final and conclusive, except (1) to the extent
otherwise agreed in the settlement; (2) for fraud; (3) upon re-
negotiation to eliminate excessive profits under the Renegotiation
Act, unless exempt or exempted under that Act; or (4) by mutual
agreement before or after payment. Where any such settlement
is made by determination without agreement, it shall likewise be
final and conclusive, subject to the same exceptions as if made by
agreement, unless the war contractor appeals or brings suit in nc-
cordance with section 13 of this Act: Provided, That no settlement
agreement hereunder involving payment to a war contractor of an
amount in excess of $50,000 (or such lesser amount as the Director
may from time to time determine) shall become binding upon the
Government until the agreement has been reviewed and approved by
n settlement review board of three or more members established by the
contracting agency in the bureau, division, regional or district office,
or other unit of the contracting agency authorized to make such set-
tlement, or in the event of disapproval by the settlement review
board, unless approved by the head of such bureau, division, regional
or district office, or other unit. Failure of the settlement review board
to act upon any settlement within thirty days after its submission
to the board shall operate as approval by the board. The sole function
of settlement review boards shall be to determine the over-all reason-
ableness of proposed settlement agreements from the point of view of
protecting the interests of the Government. In determining, for pur-
poses of this subsection, whether review of any settlement agreement
is required because of the amounts involved, no deduction shull be
made on account of credits for property chargeable to the Government
or for advance or partial payments, but amounts payable under such
settlement agreement for completed articles or work at the contract
price and for the discharge of the termination claims of subcon-
tractors shall be deducted.
(d) Except as hereinafter provided, the methods and standards
established under subsection (b) of this section for determining fair
compensation for termination claims which are not settled by agree-
ment shall be designed to compensate the war contractor fairly for the
termination of the war contract, taking into account-
(1) the direct and indirect manufacturing, selling and distri-
bution, administrative and other costs and expenses incurred by
the war contractor which are reasonably necessary for the per-
formance of the war contract and properly allocable to the ter-
minated portion thereof under recognized commercial accounting
CONFIDENTIAL
practices; and
Regraded Unclassified
-8-
CONFIDENTIAL
189
TERMINATIONS ADVISER (CONT.)
Section 6 (Cont.)
(2) reasonable costs and expenses of settling termination
claims of subcontractors related to the terminated portion of the
war contract; and
(3) reasonable accounting, legal, clerical, and other costs and
expenses incident to termination and settlement of the terminated
war contract; and
(4) reasonable costs and expenses of removing, preserving,
storing and disposing of termination inventories; and
(5) such allowance for profit on the preparations made and
work done for the terminated portion of the war contra: as is
reasonable under the circumstances; and
(6) interest on the termination claim in accordance with sub-
section (f) of this section; and
(7) the contract price and all amounts otherwise paid or pay-
able under the contract.
The following shall not be included as elements of cost:
(i) Losses on other contracts, or from sales or exchanges of capital
assets, fees and other expenses in connection with reorganization or
recapitalization, antitrust or Federal income-tax litigation, or prosecu-
tion of Federal income-tax claims or other claims against the Govern-
ment (except as provided in paragraph (8) above); losses on invest-
ments; provisions for contingencies; and premiums on life insurance
where the contractor is the beneficiary.
(ii) The expense of conversion of the contractor's facilities to uses
other than the performance of the contract.
(iii) Expenses due to the negligence or willful failure of the con-
tractor to discontinue with reasonable promptness the incurring of
expenses after the effective date of the termination notice.
(iv) Costs incurred in respect to facilities, materials, or services
purchased or work done in excess of the reasonable quantitative
requirements of the entire contract.
The failure specifically to mention in this subsection any item of
cost is not intended to imply that it should be allowed or disallowed.
The Director may interpret the provisions of this subsection (d) and
may provide for the inclusion or exclusion of other costs in accordance
with recognized commercial accounting practice.
Where the small size of claims or the nature of production or
performance or other factors make it impracticable to apply the prin-
ciples stated in this subsection (d) to any class of settlements which
are subject to this subsection (d), the contracting agencies may estab-
lish alternative methods and standards for determining fair compen-
sation for that class of termination claims. The aggregate amount
of compensation allowed in accordance with this subsection (exclud-
ing amounts allowed under paragraphs (3) and (4) above) shall not
exceed the total contract price reduced by the amount of payments
otherwise made or to be made under the contract.
(e) In order to carry out the objectives of this Act, termination
claims shall be settled by agreement to the maximum extent feasible
and the methods and standards established under subsection (b) of
this section shall be designed to facilitate such settlements. To the
extent that he deems it practicable to do so without impeding expedi-
tious settlements, the Director shall require the contracting agencies
to take into account the factors enumerated in subsection (d) above
in establishing methods and standards for determining fair compen-
sation in the settlement of termination claims by agreement.
(f) Each contracting agency shall allow and pay interest on the
amount due and unpaid from time to time on any termination claim
under n prime contract at the rate of 2½ per centum per annum for
the period beginning thirty days after the date fixed for termination
CONFIDENTIAL
Regraded Unclassifie
190
CONFIDENTIAL
TERMINATIONS ADVISER (CONT.)
Section 6 (Cont.)
and ending with the date of final payment, except that (1) if the prime
contractor unreasonably delays the settlement of his claim, interest
shall not accrue for the period of such delay, (2) if interest for the
period after termination on any advance payment or loan, made or
guaranteed by the Government, has been waived for the benefit of the
contractor, the amount of the interest so waived allocable to the termi-
nated contract or the terminated part of the contract shall be deducted
from the interest otherwise payable hereunder, and (3) if after deliv-
ery of findings by a contracting agency, the contractor appeals or sues
as provided in section 13, interest shall not accrue after the thirtieth
day following the delivery of the findings on any amount allowed by
such findings, unless such amount is increased upon such appeal or
suit. In approving, ratifying, authorizing, or making termination
settlements with subcontractors, each contracting agency shall allow
interest on the termination claim of the subcontractor on the same basis
and subject to the same conditions as are applicable to a prime
contractor.
(g) Where any war contract does not provide for or provides against
such fair compensation for its termination, the contracting agency,
either before or after its termination, shall amend such war contract
by agreement with the war contractor, or shall authorize, approve, or
ratify an amendment of such war contract by the parties thereto, to
provide for such fair compensation.
Section 7
Sec. 7. (a) Where, in connection with the settlement of any termina-
tion claim by a contracting agency, any war contractor makes settle-
ments of the termination claims of his subcontractors, the contracting
agency shall limit or omit its review of such settlements with subson-
'tractors to the maximum extent compatible with the public interest.
Any contracting agency (1) may approve, ratify, or authorize such
settlements with subcontractors upon such evidence, terms, and condi-
tions as it deems proper; (2) shall vary the scope and intensity of its
review of such settlements according to the reliability of the war con-
tractor, the size, number, and complexity of such claims, and other
relevant factors; and (3) shall authorize war contractors to make such
settlements with subcontractors without review by the contracting
agency, whenever the reliability of the war contractor, the amount or
nature of the claims, or other reasons appear to the contracting agency
to justify such action. Any such settlement of a subcontract approved,
ratified, or authorized by a contracting agency shall be final and con-
clusive as to the amount due to the same extent as n. settlement under
subsection (c) of section 6 of this Act, and no war contractor shall be
liable to the United States on account of any amounts paid thereon
except for his own fraud.
(b) Whenever any contracting agency is satisfied of the inability
of a war contractor to meet his obligations it shall exercise supervision
or control over payments to the war contractor on account of termina-
tion claims of subcontractors of such war contractor to such extent
and in such manner as it deems necessary or desirable for the purpose
of assuring the receipt of the benefit of such payments by the sub-
contractors.
(c) The Director shall prescribe policies and methods for the settle-
ment as a group, or otherwise, by any contracting agency of some or
all of the termination claims of n. war contractor under war contracts
with one or more (1) bureaus or divisions within n contracting agency,
(2) contracting agencies, or (3) prime cont ractors and subsontractors,
to the extent he deems such action necessary or desirable for expedi-
tions and equitable settlement of such claims, After consulting with
the contracting agencies concerned, the Director may provide for
assigning any war contractor to n contracting agrocy for such settle-
ment, and such agency shall have authority to settle, on behalf of
CONFIDENTIAL
any other contracting agency, some or all of the termination claims of
such war contractor.
Regraded Unclassified
CONFIDENTIAL
191
TERMINATIONS ADVISER (CONT.)
Section 7 (Cont.)
(d) Any contracting agency may settle directly termination claims
of subcontractors to the extent that it deems such action necessary or
desirable for the expeditious and equitable settlement of such claims.
In making such termination settlements any contracting agency may
discharge the claim of the subcontractor by payment or may purchase
such claim, and may agree to assume, or indemnify the subcontractor
against, any claims by any person in connection with such claim or
the termination settlement. Any contracting agency undertaking to
settle the termination claim of any subcontractor shall deliver to the
subcontractor and the war contractor liable to him written notice
stating its acceptance of responsibility for settling his claim and the
conditions applicable thereto, which may include the release, or
assignment to the contracting agency, of his claim against the war
contractor liable to him: upon consent thereto by the subcontractor,
the Government shall become liable for the settlement of his claims
upon the conditions specified in the notice.
(e) Any contracting agency may make settlements with subcon-
tractors in accordance with any of the provisions of this Act without
regard to any limitation on the amount payable by the Government
to the prime contractor.
(f) If any contracting agency determines that in the circumstances
of B. particular ease equity and good conscience require fair compen-
sation for the termination of a war contract to be paid to n. subcon-
tractor who has been deprived of and cannot otherwise reasonably
secure such fair compensation, the contracting agency concerned may
pay such compensation to him although such compensation already
has been included and paid NH part of IL settlement with another war
contractor.
Section 11
SEO, 11. (n) In order to facilitate the efficient use of materials,
manpower, and facilities for war and civilian purposes, each contract-
ing agency-
(1) shall provide its prime contractors with notice of termina-
tion of their prime contracts as far in advance of the cessation of
work thereunder as is feasible and consistent with the national
security without permitting unneeded production or performance;
(2) shall establish procedures whereby prime contractors shull
provide affected subcontractors with immediate notice of termina-
tion: and
(3) shall permit the continuation of some or all of the work
under LA terminated prime contract whenever the agency deems that
such continuation will benefit the Government or is necessary to
avoid substantial injury to the plant or property.
(b) Whenever IL contracting agency hereafter directs a prime con-
tractor to cease or suspend all or a substantial part of the work under
a prime contract, without terminating the contract. then, unless the
contract provides otherwise, (1) the contracting agency shall com-
pensate the contractor for reasonable costs and expenses resulting from
such ressation OF suspension, and (2) if the restation or suspension
extends for thirty days or more, the contractor may elect to treat it as
a termination by delivering written notice of his election 543 to do to
the contracting agency, at any time before the contracting agency
directs the prime contractor to resume work under the contract.
(e) The Director shall have no authority under this Act to regulate
or control the classes of contracts to be terminated by the contracting
agencies.
CONFIDENTIAL
Regraded Unclassified
192
-11-
CONFIDENTIAL
TERMINATIONS ADVISER (CONT.)
Section 13 (a)
Smc. 18. (a) Whenever the contracting agency responsible for set-
See also Appeal
tling any termination claim has not settled the claim by agreement or
Board, Courts
has so settled only a part of the claim, (1) the contracting agency at
any time may determine the amount due on such claim or such unset-
tled part, and prepare written findings indicating the basis of the deter-
mination, and deliver a copy of such findings to the war contractor,
or (2) if the termination claim has been submitted in the manner and
substantially the form prescribed under this Act, the contracting
agency, upon written demand by the war contractor for such findings,
shull determine the amount due on the claim or unsettled part and
prepare and deliver such findings to the war contractor within ninety
days after the receipt by the agency of such demand. In preparing
such findings, the contracting agency may require the war contractor
to furnish such information and to submit to such audits as may be
reasonably necessary for that purpose. Within thirty days after the
delivery of any such findings, the contracting agency shall pay to the
war contractor at least 90 per centum of the amount thereby deter-
mined to be due, after deducting the amount of any outstanding
interim financing applicable thereto.
Section 13 (b)
(b) Whenever any war contractor is aggrieved by the findings of a
Shown here for
contracting agency on his claim or part thereof or by its failure to
information only,
make such fundings in accordance with subsection (a) of this section,
use also Appeal
he may, at his election-
Board, Courts
(1) appeal to the Appeal Board in accordance with subsection
(d) of this section; or
(2) bring suit against the United States for such claim or such
part thereof, in the Court of Claims or in a United States district
court, in accordance with subsection (20) of section 24 of the Judi-
cint Code (28 U. S. C. 41 (20)), except that, if the contracting
agency is the Reconstruction Finance Corporation, or any carpo-
ration organized pursuant to the Reconstruction Finance
Corporation Act (47 Stat. 5), as amended, or any corporation
owned or controlled by the United States, the suit shall be
brought against such corporation in any court of competent
jurisdiction in accordance with existing law.
Section 13 (c)
(c) Any proceeding under subsection (b) of this section shall be
governed by the following conditions:
See also Appeal
(1) When any contracting agency provides a procedure within the
Board, Courts
agency for protest against such findings or for other appeal therefrom
by the war contractor, the war contractor, before proceeding under
subsection (b) of this section, (i) in his discretion may resort to such
procedure within the time specified in his contract or, if no time is
specified, within thirty days after the delivery to him of the findings;
and (ii) shall resort to such procedure for protest or other appeal to
the extent required by the Director, but failure of the contracting
agency to net on any such required protest or appeal within thirty
days shall operate as a refusal by the agency to modify its findings.
Any revision of the findings by the contracting agency, upon protest
or appeal within the agency, shall be treated ILS the findings of the
agency for the purpose of appeal or suit under subsection (b) of this
section. Notwithstanding any contrary provision in any war contract,
no war contractor shall be required to protest or appeal from such
findings within the contracting agency except in accordance with this
paragraph.
(2) A war contractor may initiate proceedings in accordance with
subsection (b) of this section (i) within ninety days after delivery to
him of the findings by the contracting agency, or (ii) in case of
protests or appeal within the agency, within ninety days after the
determination of such protest or appeal, or (iii) in case of failure
to deliver such findings, within one year after his demand therefor.
CONFIDENTIAL
Regraded Unclassified
193
-12-
CONFIDENTIAL
TERMINATIONS ADVISER (CONT.)
Section 13 (c) (Cont.)
If he does not initiate such proceedings within the time specified, he
shall be precluded thereafter from initiating any proceedings in
accordance with subsection (b) of this section, and the findings of the
See also Appeal
contracting agency shall be final and conclusive, or if no findings
Board, Courts
were made, be shall be deemed to have waived such termination claim.
(3) Notwithstanding any contrary provision in any war contract,
the Appeal Board or court shall not be bound by the findings of the
contracting agency, but shall treat such findings as prima facie cor-
Shown here for
rect, and the burden shall be on the war contractor to establish that
the amount due on his claim or part thereof exceeds the amount
information only,
allowed by the findings of the contracting agency, Whenever the
see also Appeal
Appeal Board or court finds that the war contractor failed to negotiate
Board, Courts
in good faith with the contracting agency for the settlement of his
claim or part thereof before appeal or suit thereon, or failed to furnish
to the agency any information reasonably requested by it regarding
his termination claim or part thereof. or failed to prosecute diligently
any protest or appeal required to be taken under subsection (c) (1) (ii)
of this section, the Appeal Board or court (i) may refuse to receive in
evidence any information not submitted to the contracting agency;
(ii) may deny interest on the claim or part thereof for such period ns
it deems proper; or (iii) may remand the case to the contracting
agency for further proceedings upon such terms as the Appeal Board
or court may prescribe. Unless the case is remanded. the Appeal
Board or court shall enter the appropriate award or judgment on the
basis of the law and facts, and may increase or decrease the amount
allowed by the findings of the contracting agency.
(4) Any such proceedings shall not affect the authority of the con-
tracting agency concerned to make A settlement of the termination
See also Appeal
claim, or any part thereof, by agreement with the war contractor at
Board, Courts
any time before such proceedings are concluded.
Section 13 (e)
the war contractor asserting the claim, by agreement. may any submit all
(e) The contracting agency responsible for settling claim and
erned amount in dispute. Such arbitration proceedings shall be to
the or any part of the termination claim to arbitration, without regard
by the provisions of the United States Arbitration Act to gov- the
tion the Government and the war contractor. Any such arbitra- writing
between same extent as if authorized by an effective agreement in
award shall be final and conclusive upon the United States to the
not same be extent as B. settlement under subsection (c) of section 6, but shall
subject to approval by any settlement review board.
Section 13 (f)
(f) Whenever any dispute exists between any war contractor and a
See also Appeal
subcontractor regarding any termination claim, either of them, by
Board
agreement with the other, may submit the dispute-
this section;
(1) to the Appeal Board in accordance with subsection (d) of
(2) to IL contracting agency for mediation or arbitration when-
ever authorized by the agency or required by the Director.
Any award or decision in such proceedings shall be final and con-
clusive as to the parties so submitting any such dispute and shall not
the absence of fraud or collusion.
be questioned by the United States in settling any related claim, in
Section 15 (b)
(h) For the purpose of making termination settlements or interim
See also Financing,
Plant Clearance
financing any Government agency is authorized to rely upon such
certificates of war contractors us it deems proper and to permit war
and Property
contractors and other persons to rely upon such certificates without
financial liability in the absence of fraud on their part.
CONFIDENTIAL
Regraded Unclassified
194
-13-
CONFIDENTIAL
TERMINATIONS ADVISER (CONT.)
Section 17
Sec. 17. (a) Where any person has arranged to furnish or furnished
to a contracting agency or to a war contractor any materials, services,
or facilities related to the prosecution of the war, without a formal
contract, relying in good faith upon the apparent authority of an
officer or agent of a contracting agency, written or oral instructions,
or any other request to proceed from a contracting agency, the con-
tracting agency shall pay such person fair compensation therefor.
(b) Whenever any formal or technical defect or omission in any
prime contract, or in any grant of authority to an officer or agent of a
contracting agency who ordered any materials, services, and facilities
might invalidate the contract or commitment, the contracting agency
(1) shall not take advantage of such defect or omission; (2) shall
amend, confirm, or ratify such contract or commitment without consid-
eration in order to cure such defect or omission; and (3) shall make
a fair settlement of any obligation thereby created or incurred by such
agency, whether expressed or implied, in fact or in law, or in the
nature of an implied or quasi contract.
(e) Where a contracting agency fails to settle by agreement any
claim asserted under this section, the dispute shall be subject to the
provisions of section 13 of this Act.
(d) The Director shall require each contracting agency to formalize
all such obligations and commitments within such period as the
Director deems appropriate.
Section 18 (a)
See also Financing,
Stc. 18. (a) The Director shall ectablish policies for such super-
Plant Clearance
vision and review within the contracting agencies of termination
and Property
settlements and interim financing as he deems necessary and appro-
printe to prevent and detect fraud and to assure uniformity in admin-
istration and to provide for expeditious settlements. For this pur-
pose he shall prescribe (1) such records to be prepared by the con-
tracting agencies and by war contractors as he deems necessary in
connection with such settlements and interim financing; and (2) the
records in connection therewith to be transmitted to the General
Accounting Office. He shall seek to reduce the amount of record keep-
ing. reporting, and accounting in connection with the settlement of
termination claims and interim financing to the minimum compatible
with the reasonable protection of the public interest. Each contract-
ing agency shall prescribe forms for use by war contractors in con-
nection with termination settlements and interim financing to the
extent it deems necessary and feasible.
Section 18 (c)
to any interested Government agency such advance notice and
(c) The Director, by regulation, shall provide for making available
tions information on cut-backs in war production resulting from other
sury and appropriate.
or failures to renew or extend war contracts, as he deems termina- neces-
CONFIDENTIAL
Regraded Unclassified
195
CONFIDENTIAL
TERMINATIONS ADVISER (CONT.)
Section 20 (a)
SEC. 20. (a) Each contracting agency shall have authority, notwith-
standing any provisions of law other than contained in this Act, (1) to
make any contract necessary and appropriate to carry out the provi-
sions of this Act; (2) to amend by agreement any existing contract,
either before or after notice of its termination, on such terms and to
such extent as it deems necessary and appropriate to carry out the
provisions of this Act; and (3) in settling any termination claim, to
agree to assume, or indemnify the war contractor against, any claims
by any person in connection with such termination claims or settlement.
This subsection shall not limit or affect in any way any authority of
any contracting agency under the First War Powers Act, 1941, or
under any other statute.
Section 20 (b)
See also Financing,
(b) Any contracting agency may prescribe the amount and kind of
Plant Clearance and
evidence required to identify any person as a war contractor, or any
Property
contract, agreement, or purchase order as n war contract for any of the
purposes of this Act. Any determination 80 made that any person is a
war contractor, or that any contract, agreement, or purchase order is a
war contract, shall be final and conclusive for any of the purposes of
this Act.
Section 21 (c)
See also Financing.
Plant Clearance and
(c) promote decentralization of the administration of termina-
Property
tion settlements and interim financing by fostering delegation
of authority within contracting agencies and to war contractors,
to the extent he deems necessary and feasible: and
Section 25 (a) and (c)
Only (a) and (c)
apply here; (b)
Six, 25. Subject to policies prescribed by the Director, any contract-
ing agency may exempt from some or all of the provisions of this Act
applies to Plant
(ii) any war contract made OF to be performed outside the continental
Clearance and
limits of the United States or in Alaska, or (b) any termination
Property
inventory situated outside of the continental limits of the United
States or in Alaska, or (e) any modification of a war contract pursuant
to its terms for the purpose of changing plans or specifications
applicable to the work without substantially reducing its extent.
PLANT CLEARANCE AND PROPERTY ADVISER
Section 12
Sre. 12. (n) It is the policy of the Government, upoor the termination
of any war contract, to necure the expeditions removal from the plant
of the war contractor of the termination inventory not to be retained
of sold by the war contractor.
(b) Any war contractor may submit to the contracting agency con-
cerned or to may other Government agency designated by the Director,
one or more statements showing the nuterials which such war con
truetor claims to to termination inventory under une or more war
contracts and desires in have removed by the Government. Such <tate
ment- shill he prepared in such form and detail, shall be submitted in
such manner, through the prime contractor or otherwise, and shall be
CONFILENTIAL
supported by such certificatesor other data, no may he prescribed under
this Act,
Regraded Unclassified
196
-16-
CONFIDENTIAL
PLANT CLEARANCE AND PROPERTY ADVISER (CONT.)
Section 12 (Cont.)
(c) Within sixty days after the submission of any such statement
by n war contractor, or such shorter period as may be prescribed under
this Act, or within such longer period as the war contractor may
agree, the Government agency concerned (1) shall arrange, upon such
terms and conditions as may be agreed, for the storage by the war
contractor on his own premises or elsewhere of all such claimed ter-
mination inventory which the war contractor does not retain or dis-
pose of, except any part which may be determined not to be allocable
to the terminated war contract or contracts, or (2) shall remove from
the plant or plants of the war contractor all of such claimed termina-
tion inventory not retained, disposed of, or stored by the war con-
tractor or determined not to be allocable to the terminated war
contract or contracts.
(d) Upon the failure of the Government so to arrange for storage
by the war contractor or to remove any termination inventory within
the period specified under subsection (c) of this section, the war con-
tractor, subject to regulations prescribed under this Act, may remove
some or all of such termination inventory from his plant or plants
and may store it on his own premises or elsewhere for the account and
at the risk and expense of the Government, using reasonable care for
its transportation and preservation. If any war contractor intends
so to remove any claimed termination inventory, he shall deliver to
the Government agency concerned written notice of the date fixed for
removal and a statement showing the quantities and condition of the
materials so to be removed, certified on behalf of the war contractor
to have been prepared in accordance with a concurrent physical inven-
tory of such materials. Such notice and statement shall be delivered
at least twenty days in advance of the date fixed for removal and may
be delivered before or after the expiration of the period specified
under subsection (c) of this section. If the Government agency fails
to check such materials, at or before the time of their removal by the
war contractor, a certificate of the war contractor specifying the
materials shown on such statement which were so removed, and filed
with the Government agency concerned within thirty days after the
date fixed for removal, shall constitute prima facie evidence against
the United States as to the quantities and condition of the materials
80 removed, and the fact of their removal.
(e) Notwithstanding any other provisions of law, but subject to
subsection (h) of this section, the contracting agency concerned or the
Director, or any Government agency designated by him, on behalf of
the United States, may. by the exercise of any contract rights or
otherwise, acquire and take possession of any termination inventory
of any war contractor, and any materials removed by the Government
or stored for its account under subsections (c) and (d) of this sec-
tion, whether or not such materials are finally determined not to
constitute termination inventory. With respect to any such materials,
the Government shall be liable to any war contractor concerned only
for their return to such war contractor or for their disposal value
nt the time of their removal or for the proceeds realized by the
Government from their disposal, at the election of the Government
agency concerned, unless the Government agency and the war con-
tractor agree or have agreed on A different basis, Any amount so paid
or payable to It war contractor for materials allocable to a termi-
nated war contract shall be credited against the termination claim
under such contract but shall not otherwise affect the amount due
on the claim, unless the Government agency concerned and the war
contractor agree or have agreed otherwise, Any materials to which
the Director takes title under this section shall be delivered for dis-
present (i) any appropriate Government agency authorized to make
such disposal.
CONFIDENTIAL
Regraded Unclassified
-16-
197
CONFIDENTIAL
PLANT CLEARANCE AND PROPERTY ADVISER (CONT.)
Section 12 (Cont.)
(f) No contracting agency shall nostpone or delay any termination
settlement beyond the period specifi in subsection (c) of this section
for the purpose of awaiting disposal by the war contractor or the
Government of any termination inventory reported in accordance
with subsection (b) of this section.
(g) Whenever any war contractor no longer requires, for the per-
formance of any war contract, any Government-owned machinery,
tools, or equipment installed in his plant for the performance of one
or more war contracts, the Government agency concerned, upon written
demand by the War contractor, and within sixty days after such
demand or such other period as may be prescribed under this Act,
and upon such conditions as may be so prescribed, shall remove or
provide for the removal of such machinery, tools, or equipment from
such plant, unless the Government agency concerned, and the war
contractor, by facilities contract or otherwise, have made or make
other provisions for the retention, storage, maintenance, or disposi-
tion of such machinery, tools or equipment. Government agency
concerned may waive or release on behalf of the United States any
obligation of the war contractor with respect to such machinery,
tools, or equipment upon such terms and conditions as the agency
deems appropriate. Upon the failure of the Government so to remove
or provide for removal of any such machinery, tools, or equipment,
the war contractor, subject to regulations prescribed under this Act,
may remove all or part of such machinery, tools, or equipment from
his plant and may store it on his own premises or elsewhere, for the
account and at the risk and expense of the Government, using reason-
able care for its transportation and preservation.
(h) Nothing in this Act shall limit or affect the authority of the
War Department, Navy Department, or Maritime Commission, respec-
tively, to take over any termination inventories and to retain them
for their use for any purpose or to dispose of such termination inven-
'ories for the-purpose of war production, or to authorize any war
contractor to retain or dispose of such termination inventories for
the purpose of war production.
(i) Nothing in this section shall be construed to prevent the removal
and storage of any termination inventory by any war contractor, at
his own risk, at any time after termination of any war contract to
which it is allocable.
Section 15 (b)
(b) For the purpose of making termination settlements or interim
financing any Government agency is authorized to rely upon such
See also Financing,
certificates of war contractors BS it deems proper and to permit with
Terminations
contractors and other persons to rely upon such certificates without
financial liability in the absence of fraud on their part.
Section 18 (a)
See also Financing,
SEC. 18. (a) The Director shall establish policies for such super-
Terminations
vision and review within the contracting agencies of termination
settlements and interim financing as he deems necessary and appro-
priate to prevent and detect fraud and to assure uniformity in admin-
istration and to provide for expeditions settlements, For this pur-
poro he shall proscribe (1) such records to be prepared by the con-
tracting agencies and by war contractors as he deems necessary in
connection with such settlements and interim financing: and (2) the
records in connection therewith to be transmitted to the General
Accounting Office. He shall sook to reduce the amount of record keep-
ing. reporting. and accounting in connection with the settlement of
termination claims and interini financing to the minimum compatible
CONFIDENTIAL
with the reasonable protection of the public interest. Each contract-
ing agency shall prescribe forms for use by war contractors in con-
nection with termination settlements and intering financing to the
evfant at donne and fersible
Regraded Unclassified
198
-17-
CONFIDENTIAL
PLANT CLEARANCE AND PROPERTY ADVISER (CONT.)
Section 20 (b)
See also Financing,
(b) Any contracting agency may prescribe the amount and kind of
Terminations
evidence required to identify any person as a war contractor, or any
contract, agreement, or purchase order as n war contract for any of the
purposes of this Act. Any determination so made that any person is a
war contractor, or that any contract, agreement, or purchase order is is
war contract, shall be final and conclusive for any of the purposes of
this Act.
Section 21 (c)
See also Financing,
(c) promote decentralization of the administration of termina-
Terminations
tion settlements and interim financing by fostering delegation
of authority within contracting agencies and to war contractors,
to the extent he deems necessary and feasible; and
Section 25 (b)
Only (b) applies
Sie. 25. Subject to policies prescribed by the Director, any contract-
here; (a) and (c)
ing agency may exempt from some or all of the provisions of this Act
apply to Terminations
(n) any war contract made or to be performed outside the continental
limits of the United States or in Alaska, or (b) b any termination
inventory situated outside of the continental limits of the United
Statesor in Alaska, or (e) my modification of a war contract pursuant
to its terms for the purpose of changing plans or specifications
applicable to the work without substantially reducing its extent,
PUBLIC INFORMATION ADVISER
Section 2 (b)
See also Congress,
(b) In January, April, July, and October of ench year. the Direc-
Progress and
tor shall submit to the Senate and House of Representatives a quar-
Statistics
terly progress report on the exercise of his duties and authority
under this Act, the status of contract terminations, termination
settlements, and interim financing and such other pertinent informa-
tion on the administration of the Act as will enable the Congress
to evaluate its administration and the need for amendments and
related legislation.
Note: In general, staff responsibility for advice on the dissemination of
information of benefit and interest to contracting agencies, war contractors,
and the public.
PROGRESS AND STATISTICS ADVISER
Section 2 (b)
See also, Congress,
(b) In January, April, July, and October of each year, the Direc-
Public Information
for shall submit to the Senate and House of Representatives a quar-
terly progress report on the exercise of his dnties and authority
under this Act, the status of contract terminations, termination
settlements, and interim financing and such other pertinent informa-
tion on the administration of the Act 115 will enable the Congress
to evaluate its administration and the need for amendments and
related legislation.
CONFIDENTIAL
100
-18-
CONFIDENTIAL
PROGRESS AND STATISTICE ADVISER (CONT.)
Section 18 (b)
(1) The Director shall require the Government agencies performing
functions under this Act to prepare such information and reports
regarding terminations of war contracts, settlements of termination
claims, and interim financing, as he deems necessary to assist him in
appraising their operations or to assist him or other Government agen-
this in performing their functions under this Act, and may prescribe
the terms and conditions upon which such information and reports
shall be made available to other Government agencies, The Director
may require any Government agency to furnish such information
under its control as he deems necessary for the performance of his
functions under this Act. but any such agency, in its discretion, may
furnish any such information deemed by it to uffect the national seeu-
rity only to the Director himself.
Note: In general, staff responsibilities for advice on the progress of
Contract Settlement.
LEGAL ADVISER
Note: Staff responsibilities for technical legal advice.
ACCOUNTING ADVISER
Note: Staff responsibility for technical accounting advice.
APPEAL BOARD
Section 13 (a)
Shown here for
Sec. 13. (a) Whenever the contracting agency responsible for set-
information only.
tling any termination claim has not settled the claim by agreement or
See also Termina-
has so settled only a part of the claim, (1) the contracting agency at
tions, Courts
any time may determine the amount due on such claim or such unset-
tled part, and prepare written findings indicating the basis of the deter-
mination, and deliver a copy of such findings to the war contractor,
or (2) if the termination claim has been submitted in the manner and
substantially the form prescribed under this Act, the contracting
agency, upon written demand by the war contractor for such findings,
shall determine the amount due on the claim or unsettled part and
prepare and deliver such findings to the war contractor within ninety
days after the receipt by the agency of such demand. In preparing
such findings, the contracting agency may require the war contractor
to furnish such information and to submit to such audits as may be
reasonably necessary for that purpose. Within thirty days after the
delivery of any such findings. the contracting agency shall pay to the
war contractor at least 90 per centum of the anount thereby deter-
mined to be due, after deducting the amount of any outstanding
interim financing applicable thereto.
CONFIDENTIAL
Regraded Unclassified
-19-
200
CONFIDENTIAL
APPEAL BOARD (CONT.)
Section 13 (b)
See also Terminations,
3 (b) Whenever any war contractor is aggrieved by the findings of a
Courts
contracting agency on his claim or part thereof or by its failure to
make such findings in accordance with subsection (a) of this section,
he may, at his election-
(1) appeal to the Appeal Board in accordance with subsection
(d) of this section; or
(2) bring muit against the United States for such claim or such
part thereof, in the Court of Claims or in a United States district
court, in accordance with subsection (20) of section 24 of the Judi-
cíal Code (28 U. S. C. 41 (20)), except that, if the contracting
agency is the Reconstruction Finance Corporation, or any corpo-
ration organized pursuant to the Reconstruction Finance
Corporation Act (47 Stat, 5), as amended, or any corporation
owned or controlled by the United States, the suit shall be
brought against such corporation in any court of competent
jurisdiction in accordance with existing law.
Section 13 (c)
Shown here for
U (c) Any proceeding under subsection (b). of this section shall be
information only.
governed by the following conditions:
See also Terminations,
agency for protest against such findings or for other appeal therefrom
(1) When any contracting agency provides a procedure within the
Courts
procedure within the time specified in his contract or, if no time is
subsection (b) of this section, (i) in his discretion may resort to such
by the war contractor, the war contractor, before proceeding under
the (ii) shall resort to such procedure for protest or other to
and specified, within thirty days after the delivery to him of the findings;
days agency shall act on any such required protest or appeal within thirty
extent to required by the Director, but failure of the contracting appeal
or appeal for within the agency, shall be treated as the findings protest of the
Any revision of the findings by the contracting agency, upon
operate as A refusal by the agency to modify its findings.
no Notwithstanding any contrary provision in any war
section. agency the purpose of appeal or suit under subsection (b) of this
war contractor shall be required to protest or appeal from contract, such
paragraph. findings within the contracting agency except in accordance with this
(2) A war contractor may initiate proceedings in accordance with
subsection (b) of this section (i) within ninety days after delivery to
him of the findings by the contracting agency, or (ii) in case of
protests or appeal within the agency, within ninety days after the
determination of such protest or appeal, or (iii) in case of failure
to deliver such findings, within one year after his demand therefor.
shall be precluded thereafter from initiating any proceedings in
If he does not initiate such proceedings within the time specified, he
accordance with subsection (b) of this section, and the findings of the
were made, he shall be deemed to have waived such termination claim.
contracting agency shall be final and conclusive, or if no findings
(c) (3) Notwithstanding any contrary provision in any war contract,
the Appeal Board or court shall not be bound by the findings of the
See Also Terminations,
contracting agency, but shall trent such findings as prima facie cor-
Courts
rect, and the burden shall be on the war contractor to establish that
the amount due on his claim or part thereof exceeds the amount
allowed by the findings of the contracting agency. Whenever the
Appeal Board or court finds that the war contractor failed to negotiate
in good faith with the contracting agency for the settlement of his
claim or part thereof before appeal or suit thereon, or failed to furnish
to the agency any information reasonably requested by it regarding
his termination claim or part thereof, or failed to prosecute diligently
any protest OF appeal required to be taken under subsection (c) (1) (ii)
of this section, the Appeal Board or court (i) may refuse to receive in
CONFIDENTIAL
evidence any information not submitted to the contracting agency:
Regraded Unclassified
-20-
201
CONFIDENTIAL
APPEAL BOARD (CONT.)
Section 13 (c) (Cont.)
(ii) may deny interest on the claim or part thereof for such period as
it deems proper; or (iii) may remand the case to the contracting
agency for further proceedings upon such terms as the Appeal Board
or court may prescribe. Unless the case is remanded. the Appeal
Board or court shall enter the appropriate award or judgment on the
basis of the law and facts, and may increase or decrease the amount
allowed by the findings of the contracting agency.
(4) Any such proceedings shall not affect the authority of the con-
See also Terminations
tracting agency concerned to make a settlement of the termination
claim, or any part thereof, by agreement with the war contractor at
and Courts
any time before such proceedings are concluded.
Section 13 (d) (1)
See also Courts
13 (d) (1) The Director shall appoint an Appeal Board, composed of
such number of members as he deems necessary from time to time
to hear appeals under this section. The members of the Appeal
Board shall be qualified and experienced attorneys, engineers, account-
ants, or persons possessing sufficient business experience or pro-
fessional skill. He shall, without regard to the provisions of the
civil-service laws and the Classification Act of 1923, appoint and fix
the compensation and term of office of the members of the Appeal
Board: Provided, That no member shall receive compensation at
a rate in excess of $10,000 per annum nor be appointed for a term
longer than two years.
Section 13 (d) (2)
See also Courte
13(4)(2) Panels of one or more members may act for the Appeal Board
and shall sit from time to time in localities throughout the country,
reasonably convenient for war contractors having proceedings before
them. A panel of one member of the Appeal Board may hear anv
findings within the contracting agency except-in accordance with this
paragraph.
(2) A war contractor may initiate proceedings in accordance with
subsection (b) of this section (i) within ninety days after delivery to
him of the findings by the contracting agency, or (ii) in case of
protests or appeal within the agency, within ninety days after the
determination of such protest or appeal, or (iii) in case of failure
to deliver such findings, within one year after his demand therefor.
If he does not initiate such proceedings within the time specified, he
shall be precluded thereafter from initiating any proceedings in
accordance with subsection (b) of this section, and the findings of the
contracting agency shall be final and conclusive, or if no findings
were made, he shall be deemed to have waived such termination claim.
(8) Notwithstanding any contrary provision in any war contract,
the Appeal Board or court shall not be bound by the findings of the
Section 13 (a) (3)
See Notes
(3(d) The Director or, if authorized by him, the Appeal Board shall
prescribe the practice and procedure to govern proceedings for the
Appeal Board. The Appeal Board or my panel thereof shall have
power to administer outlis to witnesses and to compel by subpena the
attendance of witnesses, and the production of books, papers, doeu-
ments, and other records, All provisions of law (including penalties
and provisions relating to self-incrimination) applicable with respect
to subpenas issued under the Federal Trade Commission Act shall be
applicable with respect to subpenas issued by the Appeal Board inso-
CONFIDENTIAL
far BH such provisions are not inconsistent with the provisions of
this Act.
Regraded Unclassifie
202
-21-
CONFIDENTIAL
APPEAL BOARD (CONT.)
See also
Section 13 (f)
Terminations
(f) Whenever any dispute exists between any war contractor and a
subeontractor regarding any termination claim, either of them, by
agreement with the other, may submit the dispute-
(1) to the Appeal Board in accordance with subsection (d) of
this section;
(2) to a contracting agency for mediation or arbitration when-
ever authorized by the agency or required by the Director.
Any award or decision in such proceedings shall be final and con-
clusive ns to the parties so submitting any such dispute and shall not
be questioned by the United States in settling any related claim, in
the absence of fraud or collusion.
CLERK OF THE APPEAL BOARD
Note: Responsible for maintenance of the necessary clerical, docket and other
services for the Appeal Board.
PROVISIONS OF THE ACT GENERALLY APPLICABLE TO THE
WHOLE OFFICE OF CONTRACT SETTLEMENTS AND TO OTHER
AGENCIES
-- (Not shown elsewhere) --
Section 1
SECTION 1. The Congress hereby declares that the objectives of this
Acture-
(iii) to facilitate maximum war production during the war, and
to expedite reconversion from war production to civilian produc-
tion as war conditions permit;
(b) to assure to prime contractors and subcontractors, small
and large, speedy and equitable final settlement of claims under
terminated war contracts, and adequate interim financing until
such final settlement;
(e) to assure uniformity among Government agencies in basic
policies and administration with respect to such termination set-
tlements and interim financing;
(d) to facilitate the efficient use of materials, manpower, and
facilities for war and civilian purposes by providing prime con-
tractors and subcontractors with notice of termination of their
war contracts as far in advance of the cessation of work there-
under as is feasible and consistent with the national security;
(v) to assure the expeditions removal from the plants of
prime contractors and subcontractors of termination inventory
not to be retained or sold by the contractor;
(f) to use all practicable methods compatible with the fore-
going objectives to prevent improper payments and to detect
and prosecute frand,
CONFIDENTIAL
Regraded Unclassified
-22-
203
CONFIDENTIAL
PROVISIONS GENERALLY APPLICABLE (CONT.)
Section 3
Src. 3. As used in this Act-
(a) The term "prime contract" means any contract, agreement, or
purchase order heretofore or hereafter entered into by a contracting
agency and connected with or related to the prosecution of the war;
and the term "prime contractor" means any holder of one or more
prime contracts.
(b) The term "subcontract" means any contract. agreement, or
purchase order heretofore or hereafter entered into to perform any
work. or to make or furnish any material to the extent that such work
or material is required for the performance of any one or more prime
contracts or of any one or more other subcontracts; and the term
"subcontractor" means any holder of one or more subcontracts.
(e) The term "war contract" means a prime contract or a subcon-
tract: and the term "war contractor" means any holder of one or
DATE war contracts.
(d) The terms "termination", "terminate", and "terminated" refer
to the termination or cancelation. in whole or in part, of work under
a prime contract for the convenience or at the option of the Govern-
ment (except for default of the prime contractor) or of work under
a subcontract for any reason except the default of the subcontractor
(+) The term "material" includes any article. commodity
machinery, equipment, necessory, part, component. assembly, work in
process, maintenance, repair, and operating supplies, and any product
of any kind.
(f) The term "Government agency" means any executive depart-
ment of the Government, or any administrative unit or subdivision
thereof. any independent agency or any corporation owned or con-
trolled by the United States in the executive branch of the Govern-
ment, and includes any contracting agency.
(g) The term "contracting agency" means any Government agency
which has been or hereafter may be authorized to make contracts
pursuant to section 201 of the First War Powers Act. 1941. and
includes the Reconstruction Finance Corporation and any corpora-
tion organized pursuant to the Reconstruction Finance Corporation
Act (47 Stat. 5), as amended, the Smaller War Plants Corporation,
and the War Production Board.
(h) The terin "termination claim" means any claim or demand
by a war contractor for fair compensation for the termination of
any war contract and any other claim under a terminated war con-
tract. which regulations prescribed under this Act authorize to be
asserted and settled in connection with any termination settlement.
) partial payments, loans, discounts, advances, and commitments in
(i) The term "interim financing" includes advance payments,
connection therewith, and guaranties of loans, discounts, advances,
and commitments in connection therewith and any other type of
financing made in contemplation of or related to termination of war
contracts. (j) The term "Director" means the Director of Contract Settle-
ment.
(k) The term "person" means any individual, corporation, part-
nership, firm, association, trust, estate, or other entity.
(including a proper part of any common materials), property
(1) The term "termination inventory" means any materials
allocable to the terminated portion of n war contract, except any
machinery or equipment subject to a separate contract specifically
governing the use or disposition thereof.
finding, shall not be reopened, annulled, modified. set aside. or disregarded suit, by
(m) or decision, means that such settlement, finding. or
The term "final and conclusive", as applied to any settlement. decision
officer, employee, or agent of the United States or in any
netion. any or proceeding except ns provided in CONFIDENTIAL this Act.
Regraded Unclassified
204
-23-
CONFIDENTIAL
PROVISIONS GENERALLY APPLICABLE (CONT.)
Section 4
Src. 4. (a) There is hereby established the Office of Contract Settle-
ment which shall be headed by the Director of Contract Settlement.
The Director shall be appointed by the President, by and with the
advice and consent of the Senate, and shall receive compensation at
the rate of $12,000 per year, and shall serve for a term of two years,
(b) In order to insure uniform and efficient administration of the
provisions of this Act, the Director, subject to such provisions, by
general orders or general regulations-
(1) shall prescribe policies, principles, methods, procedures,
and standards to govern the exercise of the authority and dis-
cretion and the performance of the duties and functions of all
Government agencies under this Act; and
(2) may require or restrict the exercise of any such authority
and discretion, or the performance of any such duty or function,
to such extent as he deems necessary to carry out the provisions
of this Act.
(c) The exercise of any authority or discretion and the perform-
ance of any duty or function, conferred or imposed on any Govern-
ment agency by this Act, shall be subject to such orders and regula-
tions prescribed by the Director pursuant to subsection (b) of this
section. Each Government agency shall carry out such orders and
regulations of the Director expeditionsly, and shall issue such regula-
tions with respect to its operations and procedures as may be neces-
sary to carry out the policies, principles, methods, procedures, and
standards prescribed by the Director. Any Government agency may
issue such further regulations not inconsistent with the general orders
or regulations of the Director as it deems necessary or desirable to
carry out the provisions of this Act.
(d) The Director may, within the limits of funds which may be
made available, employ and fix the compensation of necessary per-
sonnel in accordance with the provisions of the civil-service laws and
the Classification Act of 1923 and make expenditures for supplies,
facilities, and services necessary for the performance of his functions
under this Act. Without regard to the provisions of the civil-service
laws and the Classification Act of 1923, he may appoint a Deputy
Director and may employ certified public accountants, qualified cost
accountants, industrial engineers, appraisers, and other experts, and
fix their compensation, and contract with certified public accounting
firms and qualified firms of engineers in the discharge of the duties
imposed upon him and in furtherance of the objectives and policies of
this Act. The Director shall perform the duties imposed upon him
through the personnel and facilities of the contracting agencies and
other established Government agencies, to the extent that this does
not interfore with the function of the Director to insure uniform and
efficient administration of the provisions of this Act,
(e) All orders and regulations prescribed by the Director or any
Government agency under this Act shall be published in the Federal
Register.
Section 15 (a)
See also
Sec. 15. (a) Whenever any payment is made from Government
General Accounting
Office
funds to any war contractor or other person as an advance, partial or
final payment on any termination claim, or purstiant to any loan,
guaranty, or agreement for the purchase of any loan, or any commit-
ment in connection therewith, entered into by the Government, no
officer or other Government agent authorizing or approving such
payment or settlement, OF certifying the voncher for such payment,
or making the payment in accordance with a duly certified voneher,
shall be personally liable for such payment, in the absence of fraud on
his part. In settling the accounts of any disbursing officer the
General Accounting Office shall allow any such disbursements made
by him notwithstanding any other provisions of law.
CONFIDENTIAL
Regraded Unclassified
-24-
205
CONFIDENTIAL
PROVISIONS GENERALLY APPLICABLE (CONT,)
Section 16 (b)
See also General
Accounting Office
(b) Whenever the Comptroller General is convinced that any settle-
ment was induced by fraud, he shall so certify, together with all the
facts relating thereto, to the Department of Justice, to the Director,
and to the contracting agency concerned. Upon receipt of such
certificate (1) the Department of Justice shall make an investigation
to determine whether such settlement was induced by fraud, and
(2) until the Department of Justice notifies the contracting agency
that in its opinion the facts do not support the belief that the settle-
ment was induced by fraud, the contracting agency, by set-off or
otherwise, may withhold, from amounts owing to the war contractor
by the United States under such settlement or otherwise, the amount
of the settlement, or the portion thereof, which, in the opinion of the
Comptroller General as stated in his certificate, was affected by the
fraud. In any such case the Department of Justice shall take such
action as it deems appropriate to recover payments made to such war
contractor. The General Accounting Office shall not suspend credit
to any disbursing officer on any disbursements made by him under
such settlement in the absence of fraud on his part.
Section 16 (c)
See also General
Accounting Office
(c) The Comptroller General may investigate the settlements com-
pleted by each contracting agency for the purpose of reporting to the
Congress from time to time on-
(1) whether the settlement methods and procedures employed
by such agency are of a kind and type designed to result in expe-
ditions and fair settlements in accordance with and subject to the
Director; provisions of this Act and the orders and regulations of the
(2) whether such methods and procedures are followed by such
agency with care and efficiency and
(3) whether such methods and procedures adequately protect
the interest of the Government.
If in any such report the Comptroller General shall find that the
settlement methods and procedures fail to meet the foregoing stand-
ards, he shall make suggestions and recommendations to such agency
for the improvement of such methods and procedures and to the Con-
gress for any additional legislation needed to carry out the policies
of this Act. At lenst thirty days before filing any such report with
the Congress, the Comptroller General shall deliver a copy thereof to
the agency concerned and the Director, and shall forward to the
Congress together with such report any comments of such agency
with respect thereto.
Section 18 (a)
See Notes
(d) The Director shall make such investigations ns he deems neces-
sary or desirable in connection with termination settlements and
interim financing. For this purpose he may utilize the facilities of any
existing agencies and if he determines that the facilities of existing
agencies are inadequate, he may establish a unit in the Office of Contract
Settlement to supplement and facilitate the work of existing agencies.
He shull report to the Department of Justice any information n-,
ceived by him indicating any fraudulent practices, for appropriate
action.
CONFIDENTIAL
Regraded Unclassified
⑉25⑉
CONFIDENTIAL
206
PROVISIONS GENERALLY APPLICABLE (CONT.)
Section 18 (e)
(e) Whenever any contracting agency or the Director believes that
any settlement Wils induced by fraud, the agency or Director shall
report the facts to the Department of Justice. Thereupon, (1) the
Department of Justice shall make an investigation to determine
whether such settlement was induced by fraud, and (2) until the Do.
partment of Justice notifies the contracting agency that in its opinion
the facts do not support the belief that the settlement was induced by
fraud, the contracting agency, by set-off or otherwise. may withhold,
from amounts owing to the war contractor by the United States under
such settlement or otherwise, the amount of the settlement. or the
portion thereof, which. in its opinion. was affected by the fraud. In
any such ense the Department of Justice shall take such action as it
deems appropriate to recover payments made to such war contractor.
Section 19
See Notes
Sec. 10. (a) It shall be unlawful for any person willfully to
secrete, mutilate, obliterate, or destroy, or cause to be secreted, muti-
lated, obliterated, or destroyed-
(i) any records of a war contractor relating to the negotiation,
award, performance, payment, interim financing, cancelation or
other termination, of settlement of a war contract of $25,000 or
more; or
(ii) any records of a war contractor and any purchaser relating
to any disposition of termination inventory in which the consid-
eration received by any war contractor or any Government agency
is $5,000 or more,
until (1) five years, after such disposition of termination inventory
by such war contractor or Government agency. or (2) five years after
5 the final settlement of such war contract, or (3) five years after the
termination of hostilities in the present war as proclaimed by the
President or by n. concurrent resolution of the two Houses of Congress,
whichover applicable period is longer.
As used in this subsection, the term "records" includes, but is not
limited to, books, ledgers, checks and check stubs, pay-roll data,
vouchers, memoranda. correspondence, inspection reports and certifi-
entes. "Any corporation violating any provision of this subsection
shall be fined not more than $50,000 and any natural person violating
any provision of this subsection shall be fined not more than $10,000,
or imprisoned for not more than five years, or both: Provided, how-
ever, That the Director, by regulation, may authorize the destruction
of such records upon such terms and conditions as he deems appro-
printe, which may include the making and retaining of photographs
or microphotographs. Photographs or microphotographs of any
records made in compliance with such regulations of the Director
shall have the same force and effect ns the originals thereof would
have and shall be treated as originals for the purpose of admissibility
in evidence.
(b) The first section of the Act of August 24. 1942 (56 Stat. 747;
title 18. U.S. C., Supp. 11, see, 590a). is amended to read IIS follows:
"The running of any existing statute of limitations applicable to
any offense against the laws of the United States (1) involving
defrauding or attempts to defraud the United States or any agency
thereof whether by conspiracy or not. and in any manner. or (2) com-
mitted in connection with the negotiation, procurement. award. per-
formance. payment for, interin financing, cancelation or other
termination or settlement. of any contract. subcontract, or purchase
order which is connected with or related to the prosecution of the
present war, or with any disposition of termination inventory by any
war contractor OF Government agency. shall to suspended until three
CONFIDENTIAL
years after the termination of Instifities in the present war as pro-
claimed by the President or by Il concurrent resolution of the two
Regraded Unclassified
-26-
CONFIDENTIAL
207
PROVISIONS GENERALLY APPLICABLE (CONT.)
Section 19 (Cont.)
Houses of Congress. This section shall apply to acts, offenses, or
transactions where the existing statute of limitations has not. yet
fully run. but it shall not apply to nets, offenses, or transactions which
are already barred by provisions of existing law."
(c) (1) Every person who makes or causes to be made, or presents or
causes to be presented to any officer, agent, or employee of any Gov-
ernment agency any claim, bill, receipt, voucher, statement, account,
certificate, affidavit, or deposition, knowing the same to be false, fraud-
ulent, or fictitious or knowing the same to contain or to be based on
any false, fraudulent, or fictitious statement or entry, or who shall
cover up or conceal any material fact, or who shall use or engage in
any other fraudulent trick, scheme, or device, for the purpose of secur-
ing or obtaining, or aiding to secure or obtain, for any person any
benefit, payment, compensation, allowance, loan, advance, or emolu-
ment from the United States or any Government agency in connection
with the termination, cancelation, settlement, payment, negotiation,
renegotiation, performance, procurement, or award of a contract with
the United States or with any other person, and every person who
enters into an agreement, combination, or conspiracy so to do, (1)
shall pay to the United States an amount equal to 25 per centum of
any amount thereby sought to be wrongfully secured or obtained but
not actually received, and (2) shall forfeit and refund any such
benefit, payment, compensation, allowance, loan, advance, and emolu-
ment received as a result thereof and (3) shall in addition pay to the
United States the sum of $2,000 for each such act, and double the
amount of any damage which the United States may have sustained
by reason thereof, together with the costs of suit.
(2) The several district courts of the United States, the District of
Columbia, the several district courts of the Territories of the United
States, within whose jurisdictional limits the person, or persons, doing
or committing such net, or any one of them, resides or shall be found,
shall, wheresoever such net may have been done or committed, have
full power and jurisdiction to hear, try, and determine such suit, and
such person or persons as are not inhabitants of or found within the
district in which suit is brought may be brought in by order of the
court to be served personally or by publication or in such other rea-
sonable manner as the court may direct.
(d) The provisions of section 35-A of the Criminal Code (18
U. S. C,, sec. 80) shall apply to any statement, representation, bill,
receipt, voucher, roll, account, claim, certificate, affidavit, or deposition
made or used or caused to be made or used for any purpose under this
Act or under any regulations pursuant to this Act.
(e) It shall be unlawful for any person employed in any Gov-
ernment agency, including commissioned officers assigned to duty in
such agency, during the period such person is engaged in such
employment or service, to prosecute, or to net ns counsel, attorney, or
agent for prosecuting. any claim-against the United States, or for any
such person within two years after the time when such employment or
service has ceased, to prosecute, or to net as counsel, attorney, or agent
for prosecuting. any claim against the United States involving any
subject matter directly connected with which such person was so
employed or performed duty. Any person violating any provision of
this subsection shall be fined not more than $10,000 or imprisoned
for not more than one year, or both.
CONFIDENTIAL
Regraded Unclassifie
208
-27-
CONFIDENTIAL
PROVISIONS GENERALLY APPLICABLE (CONT.)
Section 20 (c). (d). (e), (f)
(e) There are hereby authorized to be appropriated such sunis ns
may be necessary for administering the provisions of this Act.
(d) All policies and procedures relating to termination of war con-
tracts, termination settlements. and interim financing, prescribed by
the Director of War Mobilization or any contracting agency, in effect
upon the effective date of this Act, and not inconsistent with this Act,
shall remain in full force and effect unless and until superseded by the
Director in accordance with this Act. or by regulations of the contract-
ing agency not inconsistent with this Act or the policies prescribed by
the Director.
(e) Nothing in this Act shall be deemed to impair or modify any
warr contract of any term or provision of any war contract or any
assignment of any claim under a war contract, without the consent
of the parties thereto, if the war contract, of the term, provision, or
assignment thereof, is otherwise valid,
(f) Any contracting agency may authorize or direct its officers
and employees, as a part of their official duties, to advise, aid. and
asid war contractors in preparing and presenting termination claims,
See Notes
in obtaining interim financing. and in related matters, to such extent
ns it devins desirable. Such advice, nid, or assistance shall not consti-
tute n violation of section 109 of the Criminal Code (18 U. S. C. 108)
or of any other law, provided the officer or employee does not receive
therefor benefit OF compensation of any kind, directly or indirectly,
from any war contractor.
Section 21 (b)
See Notes and
(b) collaborate with the Smaller War Plants Corporation in
also Smaller War
protecting the interests of smaller war contractors in obtain-
Plants Corp.
ing fair and expeditions termination settlements and interim
financing;
Section 21 (d)
See Notes
(d) consult with war contractors through advisory committees
or such other methods as he deems appropriate,
Section 22
Sec. 22. Any contracting agency is authorized-
(a) to use for interim financing, the payment of claims, and
for any other purposes authorized in this Act any funds which
have heretofore been appropriated or allocated or which may here-
after be appropriated or allocated to it, or which are or may,
become available to it, for such purposes or for the purposes of
war production or war procurement;
(h) to use any such funds appropriated, allocated, or available
to it for expenditures for or in belmif of any other contracting
agency for the purposes authorized in this Act; and
(e) to determine by agreement, joint estimate, or any other
method authorized by the Director, the part of any expenditure
made pursuant to subsection (b) hereof to be paid by each con-
tracting agency concerned and to make transfers of funds between
See Notes
such contracting agencies accordingly. Transfers of funds
between appropriations carried upon the books of the Treasury
shall be made by the Secretary of the Treasury in accordance with
joint requests of the contracting agencies involved.
CONFIDENTIAL
Regraded Inclassified
-28-
209
CONFIDENTIAL
PROVISIONS GENERALLY APPLICABLE (CONT.)
Section 23
SEO. 23. (a) The Director may delegate any authority and discre-
tion conferred upon him by this Act to any Deputy Director, and may
delegate such authority and discretion, upon such terms and condi-
tions As he may prescribe, to the head of any Government agency to
the extent necessary to the handling and solution of problems peculiar
to that agency.
(b) The head of any Government agency may delegate any authority
and discretion conferred upon him or his agency by or pursuant to
this Act to any officer, agent, or employee of such agency or to any
other Government agency, and may authorize successive redelegations
of such authority and discretion.
(c) Any two or more Government agencies may exercise jointly
any authority and discretion conferred upon each of them indi-
vidually by or pursuant to this Act.
(d) Nothing in this Act shall prevent the Director from exercising
any authority conferred upon him by any other statute,
Section 24
Sec. 24. (a) This Act shall become effective twenty days after the
date of its enactment. With the exception of the provisions of para-
graphs (b), (c), (d), and (e) of section 12, and of sections 6. 7,
8, 9, 10, and 13, this Act shall be applicable in the case of any
terminated war contract which has been finally settled at or before the
effective date of this Act.
(b) Nothing in this Act shall limit or affect any authority con-
ferred by the Act of March 11, 1941 (50 Stat. 31), as amended, or Acts
supplemental thereto.
Section 26
Sec. 26. If any provision of this Act, or the application of such
provision to any person of circumstance, is held invalid, the remainder
of this Act or the application of such provision to persons or circum-
stances other than those as to which it is held invulid, shall not be
uffected thereby.
Section 27
Sec. 27. This Act may be cited us the "Contract Settlement Act of
1944".
Approved July 1, 1944.
CONFIDENTIAL
Regraded Unclassified
-29-
210
CONFIDENTIAL
COURTS, INCLUDING COURT OF CLAIMS
Section 13 (a)
Shown here for
Smo. 13. (a) Whenever the contracting agency responsible for set-
information only.
tling any termination claim has not settled the claim by agreement or
See also Appeal
has so settled only a part of the claim, (1) the contracting agency at
Board, Terminations
any time may determine the amount due on such claim or such unset-
tled part, and prepare written findings indicating the basis of the deter-
mination, and deliver a copy of such findings to the war contractor,
or (2) if the termination claim has been submitted in the manner and
substantially the form prescribed under this Act, the contracting
agency, upon written demand by the war contractor for such findings,
shall determine the amount due on the claim or unsettled part and
prepare and deliver such findings to the war contractor within ninety
days after the receipt by the agency of such demand. In preparing
such findings, the contracting agency may require the war contractor
to furnish such information and to submit to such audits as may be
reasonably necessary for that purpose. Within thirty days after the
delivery of any such findings, the contracting agency shall pay to the
war contractor at least 90 per centum of the amount thereby deter-
mined to be due, after deducting the amount of any outstanding
interim financing applicable thereto.
Section 13 (b)
See also Appeal
13 (b) Whenever any war contractor is aggrieved by the findings of IN
Board, Terminations
contracting agency on his claim or part thereof or by its failure to
make such findings in accordance with subsection (a) of this section,
he may, at his election-
(1) appeal to the Appeal Board in accordance with subsection
(d) of this section; or
(2) bring suit against the United States for such claim or such
part thereof, in the Court of Claims or in B. United States district
court, in accordance with subsection (20) of section 24 of the Judi-
cial Code (28 U. S. C. 41 (20)), except that, if the contracting
agency is the Reconstruction Finance Corporation, or any corpo-
ration organized pursuant to the Reconstruction Finance
Corporation Act (47 Stat. 5), as amended, or any corporation
owned or controlled by the United States, the suit shall be
brought against such corporation in any court of competent
jurisdiction in accordance with existing law.
Section 13 (c)
(c) (1) and (c) (2)
15(c) Any proceeding under subsection (b) of this section shall be
shown here for
governed by the following conditions:
information only,
(1) When any contracting agency provides n procedure within the
See also Appeal Boord,
agency for protest against such findings or for other appeal therefrom
Terminations
by the war contractor, the war contractor, before proceeding under
subsection (b) of this section, (i) in his discretion may resort to such
procedure within the time specified in his contract or, if no time is
specified, within thirty days after the delivery to him of the findings;
and (ii) shall resort to such procedure for protest OF other appeal to
the extent required by the Director, but failure of the contracting
agency to net on any such required protest or appeal within thirty
days shall operate as il refusal by the agency to modify its findings.
Any revision of the findings by the contracting agency, upon protest
or appeal within the agency, shall be treated as the findings of the
agency for the purpose of appeal or suit under subsection (1) of this
section. Notwithstanding any contrary provision in any war contract,
no war contractor shall be required to protest or appeal from such
CONFIDENTIAL
-30-
211
CONFIDENTIAL
COURTS (CONT.)
Section 13 (c) (Cont.)
findings within the contracting agency except in accordance with this
paragraph.
(2) A war contractor may initiate proceedings in accordance with
subsection (b) of this section (i) within ninety days after delivery to
him of the findings by the contracting agency, or (ii) in case of
protests or appeal within the agency, within ninety days after the
determination of such protest or appeal, or (iii) in case of failure
to deliver such findings, within one year after his demand therefor.
If he does not initiate such proceedings within the time specified, he
shall be precluded thereafter from initiating any proceedings in
accordance with subsection (b) of this section, and the findings of the
contracting agency shall be final and conclusive, or if no findings
were made, he shall be deemed to have waived such termination claim.
(3) Notwithstanding any contrary provision in any war contract,
the Appeal Board or court shall not be bound by the findings of the
See also Terminations,
contracting agency, but shall treat such findings as prima facie cor-
Appeal Board
rect, and the burden shall be on the war contractor to establish that
the amount due on his claim or part thereof exceeds the amount
allowed by the findings of the contracting agency, Whenever the
Appeal Board or court finds that the war contractor failed to negotiate
in good faith with the contracting agency for the settlement of his
claim or part thereof before appeal or suit thereon, or failed to furnish
to the agency any information reasonably requested by it regarding
his termination claim or part thereof. or failed to prosecute diligently
any protest or appeal required to be taken under subsection (c) (1) (ii)
of this section, the Appeal Board or court (i) may refuse to receive in
evidence any information not submitted to the contracting agency;
(ii) may deny interest on the claim or part thereof for such period ns
it deems proper; or (iii) may remand the case to the contracting
agency for further proceedings upon such terms as the Appeal Board
or court may prescribe. Unless the case is remanded, the Appeal
Board or court shall enter the appropriate award or judgment on the
basis of the law and facts. and may increase or decrease the amount
allowed by the findings of the contracting agency.
(4) Any such proceedings shall not affect the authority of the con-
tracting agency concerned to make a settlement of the termination
See also Terminations
claim. or any part thereof, by agreement with the war contractor at
Appeal Board
any time before such proceedings are concluded.
Section 13 (d) (2)
See also Appeals
n°(2) Panels of one or more members may act for the Appeal Board
Board
and shall sit from time to time in localities throughout the country,
reasonably convenient for war contractors having proceedings before
them. A panel of one member of the Appeal Board may hear any
appeal whenever (i) the amount in controver-y in the appeal is $25,000
or loss; or (ii) the amount in controversy exceeds $25,000, but the war
contractor taking the appeal fails to demand a panel of three nuembers
at the time of filing his appeal. If the war contractor is aggrieved by
the decision of the Appeal Board or panel (other than an order re-
manding the case to the contracting agency under subsection (e)
(3) (iii) of this section), then within ninety days after such deci-
sion be may bring suit on the claim or unsettled part thereof in
accordance with subsection (b) (2) of this section. Such suit shall
proced ns if no appeal had been taken under subsection (b) of this
section. All costs of such suit strull be borne by the war contractor
unless the court awards such contractor an amount in excess of that
allowed by the Appeal Board or panel. Upon failure of the war
contractor so to sue within such period, the decision of the Appeal
Board or panel shall be final and conclusive,
CONFIDENTIAL
Regraded Unclassified
212
-31-
CONFIDENTIAL
COURTS (CONT.)
Section 14
Seo. 14. (a) For the purpose of expediting the adjudication of
termination claims, the Court of Claims is authorized to appoint not
more than ten auditors and not more than twenty commissioners in
addition to those provided for by the Act of February 24, 1925 (gh. 301,
43 Stat. 964), as amended by the Act of June 23, 1930 (eh. 573. 46 Stat.
799). and the provisions of said Act shall apply to such additional
commissioners in all respects as if they had been appointed thereunder
without limitation NN to nature of duties which they may be called
upon to perform.
(b) The Court of Claims, on motion of either of the parties, or on
its own motion. may summon any and all persons with legal capacity
to be sued to appear as a party or parties in any suit or proceeding of
any nature whatsoever pending in said court to assert and defend
their interests, if any, in such suits or proceedings, within such period
of time prior to judgment as the Court of Claims shall prescribe, If
the name and address of any such person is known or can be ascertained
by reasonable diligence, and if he resides within the jurisdiction of
the United States, he shall be summoned to appear by personal service:
but if any such person resides outside of the jurisdiction of the United
States, or is unknown, or if for any other good and sufficient reason
appearing to the court personal service cannot be had, he may be
summoned by publication. under such rules as the court may adopt,
together with it copy of the stimmons mailed by registered mail to
such person's last known address, The Court of Claims may, upon
motion of the Attorney General, in any suit or proceeding where there
may be any number of persons having possible interests therein, notify
such persons to appear to assert and defend such interests. Upon
failure so to appear, any and all claims or interests in claims of any
such person against the United States, in respect of the subject matter
of such smit or proceeding. shall forever be barred and the court shall
have jurisdiction to enter judgment pro confesso upon any claim or
contingent claim asserted on behalf of the United States against any
person who, having been duty served with summons, fails to respond
thereto, to the same extent and with like effect as if such person bad
appeared and had admitted the truth of all allegations made on behalf
of the United States. Upon appearance by any person pursuant to
any such summons or notice, the ease as to such person shall, for all
purposes, be treated as if an independent proceeding had been insti-
ruted by such person pursuant to section 145 of the Judicial Code, ns
amended, and AN if such independent proceeding had then been con-
solidated, for purposes of trial and determination. with the case in
respect of which the summons or notice was issued. except that the
United States shall not be heard upon any counterclaims, claims for
damages OF other demands whatsoever against such person. other
time claims and contingent claims for the recovery of money herenfter
paid by the United States in respect of the transaction or matter which
constitutes the subject nutter of such case, unless and until such
person shall mssert therein II claint, or an interest in a claim. against
the United States, and the Court of Claims shall have jurisdiction
to adjudicate. as between any and all adverse claimants, their respec-
tive several interests in any matter in suit and to award several judg.
monts in accordance therewith.
(e) The jurisdiction of the Court of Claims shall not be affected by
this Act except to the extent invessary to give effect to this Act. and no
person shall recover judgment on any claim. or ou any interest in any
clain, in said court which such person would not leave had il right to
assett in said court if this section had not been enneted.
CONFIDENTIAL
Regraded Inclassified
213
-32-
CONFIDENTIAL
GENERAL ACCOUNTING OFFICE
Section 15 (a)
Also see Provisions
Generally Applicable
Sec. 15, (a) Whenever any payment is made from Government
funds to any war contractor or other person as an advance, partial or
find payment on any termination claim, or pursuant to any loan,
guaranty, or agreement for the purchase of any loan, or any commit-
ment in connection therewith, entered into by the Government, no
officer or other Government agent authorizing or approving such
payment or settlement. or certifying the voucher for such payment,
or making the payment in accordance with n. duly certified voucher,
shall be personally liable for such payment, in the absence of fraud on
his part. In settling the accounts of any disbursing officer the
General Accounting Office shall allow any such disbursements made
by him notwithstanding any other provisions of law.
Section 16 (a)
Src. 16. (n) Any other provision of law notwithstanding, the
function of the General Accounting Office with respect to any termina-
tion settlement made, authorized, ratified, or approved by a con-
tracting agency shall be confined to determining, after final
settlement, (1) whether the settlement payments to the war contractor
were made in accordance with the settlement, and (2) whether the
records transmitted to it, OF other information. warrant a reasonable
belief that the settlement was induced by fraud. For this purpose the
General Accounting Office shall have the authority to examine any
records maintained by any contracting agency or by any war
contractor relating to any termination settlement.
Section 16 (b)
Also see Provisbne
Generally Applicable
" (b) henever the Comptroller General is convinced that any settle-
ment was induced by fraud. he shall so certify, together with all the
facts relating thereto, to the Department of Justice, to the Director,
and to the contracting agency concerned. Upon receipt of such
certificate (1) the Department of Justice shall make an investigation
to determine whether such settlement was induced by fraud, and
(2) until the Department of Justice notifies the contracting agency
that in its opinion the facts do not support the belief that the settle-
ment was induced by fraud, the contracting agency, by set-off or
otherwise, may withhold, from amounts owing to the war contractor
by the United States under such settlement or otherwise, the amount
of the settlement, or the portion thereof, which, in the opinion of the
Comptroller General ns stated in his certificate, was affected by the
fraud. In any such case the Department of Justice shall take such
nction as it deems appropriate to recover payments made to such war
contractor. The General Accounting Office shall not suspend credit
to any disbursing officer on any disbursements made by him under
such settlement in the absence of fraud on his part.
CONFIDENTIAL
Regraded Unclassified
214
-33-
CONFIDENTIAL
GAO (CONT.)
Section 16 (c)
See also Generally
(e) The Comptroller General may investigate the settlements
Applicable
pleted Congress by each from contracting time to time agency on- for the purpose of reporting to com- the
(1) whether the settlement methods and procedures employed
by such agency are of IL kind and type designed to result in expe-
ditions and fair settlements in accordance with and subject to the
provisions of this Act and the orders and_ regulations of the
Director;
(2) whether such methods and procedures are followed by such
agency with enre and efficiency; and
(3) whether such methods and procedures dequately protect
the interest of the Government.
If in any such report the Comptroller General shall find that the
settlement methods and procedures fail to meet the foregoing stand-
ands, he shall make suggestions and recommendations to such agency
for the improvement of such methods and procedures and to the Con-
gress for any additional legislation needed to earry out the policies
of this Act. At least thirty days before filing any such report with
the Congress, the Comptroller General shall deliver a copy thereof to
the agency concerned and the Director, and shall forward to the
Congress together with such report any comments of such agency
with respect thereto.
Section 16 (d)
16 (d) The jurisdiction of the Comptroller General of the United State-
shall not be affected by this Act except to the extent necessary to give
effect to the specific provisions thereof.
SMALLER WAR FLANTS CORPORATION
Section 20 (R)
(g) The Smaller War Plants Corporation is hereby directed-
(1) to dis-eminate information among small business concerns
with respect to interim financing, termination settlements, removal
and storage of termination inventories pursuant to the provisions
of this Act and the regulations of the Director: and
(2) to assist small business concerns in connection with the
securing of interim financing and the preparation of applications
for such interim financing, the effecting of termination settle-
ments, and the removal and storage of termination inventories,
and to make interim loans and guaranties, in order to assure that
small business concerns receive fair and equitable treatment from
prime contractors and intermediate subcontractors in connection
with the termination of war contracts.
Section 21 (c)
Shown here for
(b) collaborate with the Smaller War Plants Corporation in
information only.
protecting the interests of smaller war contractors in obtain-
See also Generally
financing: ing fair and expeditious termination settlements and interim
Applicable
CONFIDENTIAL
Regraded Unclassified
215
-34-
CONFIDENTIAL
NOTES
1. Section 13 (d) (3) -- Assignment of responsibility for prescribing practice
and procedure to govern procedures to the Appeal
Board is not intended in showing this provision under
the Appeal Board.
2. Section (18) (d) -- More specific assignment of responsibility for
investigations will have to be made later.
3. Section (19) (a)
-- More specific assignment of responsibility for
regulations concerning the preservation end destruction
of records will have to be made later.
4. Secti on (20) (f)
-- More specific assignment of responsibility for
authorizing and directing officers and employees to
aid war contractors will have to be made later,
5. Section 21 (b)
-- More specific assignment of responsibility will have
to be made later.
6. Section 21 (d)
-- Mechanism for consulting contractors will have to be
established and responsibility for consulting war
contractors assigned more specifically later.
7. Section 22 (c)
-- More specific assignment of responsibility will have
to be made later.
CONFIDENTIAL
Regraded Unclassified
AIR 15
216
BRITISH air COMMISSION
1785 MASSACHUSETTS AVENUE
WASHINGTON, D. C.
TELEPHONE HOBART 9000
PLEASE QUOTE
REFERENCE NO.
With the compliments of British Air Commission
who enclose Monthly Report No.11 covering
Aircraft Flight Delivery as at July 31, 1944.
The Honourable Henry Morgenthau, Jr.
Secretary of the Treasury
WASHINGTON, D.C.
August 3, 1944.
Regraded Unclassified
1
2
CONFIDENTIAL
217
W.D.M
LOCATIONS OF OCEANIC FLIGHT DELIVERY ATROBATE
NO.11
(COVERING MOVEMENTS THROUGH JULY n, 1944)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(6)
(9)
(10)
(11)
(12)
FORTRESS
LD.
HUDSON
visa.
7. BOAT
VENT.
BOST.
(BIG-L/L)
(BAC)
(BAC-L/L)
(BAG)
(BAC/L/L)
(L/L)
(1/L)
(L/1)
(1/1)
(1/1)
(LA)
UNITED SINGDOM
146
96
807
10
490
58
309
1
354
379
8
MISDLE HASP (a)
5
95
204
33
111
160
sus
REST AFRICA (a)
22
4
ABSTRALIA
27
BOUTH AFRICA (a)
135
107
$
SINGAPORE
9
INDIA (a)
300
ASCRES
3
PRINTOIS
91
Gru's If CANADA
220
68
"
37
a
27
DEAF
28
1
2
(e) 15
in OTU
34
$
GROUP RAFTO
11
43
20
10
10
reute eversoas
,
20
11
be
reute U.S. at U.S.
1
f I des.
1
3
2
,
1
,
Issum
or Bermada (en reute)
1
1
4
1
1
,
Opecial daty in Canada
1
1
1
Mentroal
2
2
1
13
12
1
18
CRASHED AFTER EXPORT
52
19
10
9
17
39
6
9
it
9
2a reste export
1
2
1
35
X
M Nedification Center
20
1
86
,
24
Special daty in U.S.
2
1
CRASHED IN us.
1
28
5
1
3
15
5
2
,
1
DIVERTED TO U.S.
50
21
(b)261
TOTAL
149
165
39/8
661
(a)602
446
369
1173
2067
500
(a) Including deliveries to Rabet, Astra or Takeradi for these destinations.
(b) Including 15 returned under Roq. BSC 41016 after use by U.S.A.A.F.
for training, with 45 off DA-152 also under 41018 after Air.F. training we
All w are included in Colum 6.
(e) 823 later re-allossted to Canada by N.A.C. (AIR), under Req. CA-00076.
(a) Reduced w 21 PM's, 34 PER's, and 25 PB2X-38's, returned to U.S. Havy.
PLANNING AND AIRPRAME SUPPLE
STATE ATR COMMISSION
HARRINGTON, DeC.
Regraded Unclassified
218
SECRET BY COURIER
August 1, 1944
CIRCULAR AIRGRAM
August 3, 1944
SUBJECT: SAFEGUARDING OF LIVES OF AMERICAN REPUBLICS
DOCUMENT HOLDERS
11:00 am
TO CERTAIN AMERICAN DIPLOMATIC OFFICERS:
Please refer to previous communications regarding persons
affiliated with persecuted European groups in enemy controlled areas
holding documents issued in the names of American republics and
efforts to safeguard their lives. Intense persecution of such groups,
including forced deportation and mass extermination has been intro-
duced into Hungary, where persons holding documents issued in the
names of American republics are reported to be in danger because of
absence of representation in that country. Amlegation Bern cables:
QUOTE With regard to general question of Latin American
documentation in German controlled countries, the suggestion
that such Latin American Governments as have not previously
made arrangements for their interests in Hungary to be taken
care of urgently ask Switzerland or other neutral country to
assume such representation is made by the Legation for the
consideration of the Department. All Latin American countries
without direct representation in Hungary except Uruguay, Chile,
Brazil and possibly El Salvador, would seem to be concerned
in this. UNQUOTE
Please consult appropriate officials of the Foreign Office in
an endeavor urgently to secure representation in Hungary by Switzer-
land for the Government to which you are accredited. Although such
government's interest in Hungary may be nominal, its representation
in Hungary preferably by Switzerland is an essential first step to
the humanitarian effort to save the lives of persons there holding
documents issued in such government's name, and the approach to the
Foreign Office should be on that basis. If the government to which
you are accredited agrees to this measure, please request it to in-
struct the protecting power substantially as follows: (1) Pass-
ports and other documents issued in its name to persons in Hungary
subject to persecution, are recognized and confirmed; (2) Hungarian
Government to 80 be advised and that it is expected that persons
holding such passports and other documents will be accorded the
treatment, rights, privileges, and immunitiespf nationals of the
government to which you are accredited, and (3) the United States
is authorized to negotiate for the exchange of such persons. You
may
Regraded Unclassified
219
SECRET BY COURIER
- 2 -
may assure the Foreign Office that in the event of such negotiation
every preference will be given by the United States to unquestioned
nationals of the government to which you are accredited, and that
such government will not be expected physically to receive other
persons, who, if exchanged, will be routed to other havens.
If desired this Government would be willing to act as a channel
of communication in representation matters between it and the Swies
or other neutral Government to which it wishes to entrust its
interests in Hungary.
Please advise the Department promptly of the results of your
approaches.
Stettinius
acting
ghs
ACTING
Send to AMEMBASSY
La Paz
Bolivia
If
San Jose
Costa Rica
#
Quito
Ecuador
4
Guatemala
Guatemala
If
Port-au-Prince
Haiti
If
Tegucigalpa
Honduras
II
Managua
Nicaragua
II
Asuncion
Paraguay
II
San Salvador
El Salvador
If
Caracas
Venezuela
WRB:MMV:OMH CCA
RPA
WCA
BOL
WE
SE
ARA
Regraded Unclassified
220
No. 450
OFFICE OF THE REPRESENTATIVES OF THE UNITED STATES
CONDIFENTIAL
Algiers, August 3, 1944
SUBJECT: Proposed Fugoslav Refugee Camp at Phillippeville
The Honorable
The Secretary of State,
Washington.
Sir:
= with reference to telegram No. 2371 of July 12, 6 pame for the West
Refugee Board from Mr. Murphy, and previous, I have the honor to enclose
the minutes of a meeting concerning the proposed camp for Yugoslav
refugees at Phillippeville.
It is believed that the record of the meeting will be of value
to UNRRA in view of the responsibility of that organization to admin-
ister the camp beginning October 1, 1944. While it has not been made
a matter of record in the minutes of the meating, Brigadier Clark empha-
sized in no uncertain terms that the British military will relinquish
direction of the camp on September 30. In these circumstances it will
be absolutely necessary for UNRRA to have an adequate administrative No.
staff available in advance of that date to take over the direction of
the camp at Phillippeville.
It was agreed at the meeting that the French authorities would
be asked to accept as a basis for dealing with offenses committed by
the refugees a set of general principles to be drawn up by Brigadier
Clark in agreement with Allied Force Headquarters. These principles
would be applied in framing the military directive to the commander of
the comp by which he would deal with offenses committed within the camp,
that is between minor offenses, which, though punishable under French
law, could be adequately dealt with by camp discipline, and serious
offenses, which would be tried by the French courts.
It had been hoped to show this despatch to Governor R. L. Cochran,
the representative of UNRRA attached to Allied Force Headquarters, but
his departure for Cairo, the uncertainty of the date of his return and
the urgent need for UNRRA to despatch personnel to the camp at
eas Miss Chauncey (For the Sec'y), Abrahamson, Aksin, Berenstein, Cohn,
Dubois, Friedman, Gastem, Redel, Laughlin, Lesser, Menns Mannon,
Marks, NeCormack, Pehle, Sargoy, Standish, Weinstein, Files
Regraded Unclassified
221
2
Phillippeville as soon as possible prompts the sending of the despatch
without further depay.
Respectfully yours,
/a/ Selden Chapin
Selden Chapin
Counselor of Embassy, In Charge
Enclosure:
Minutes of meeting.
711.10
GWR:jee
Osalid copy to Department.
Regraded Unclassified
222
Regraded Unclassified
Anclosure to despatch No. 450, dated August 3, 1944, from Algiers.
RECORD OF MEETING held at 5, Rue Professeur Curtillet, Algiers, on Fri-
day 28th July, concerning the proposed camp for Jugoslav Refugees
at Phillippeville.
Presents
Mr. Kingsley Rooker.
Office of the British Representative
(in the Chair).
16. de la Tournelle.
Commissariat aux Affaires Estrangeres.
11. Marcel Grau.
Commissariat aux Prisonniers, Deportes
at Refugies.
Capitaine Chantegreil.
Etat Major Defense Nationale.
M. Malvy.
Sous-Directeur Securite.
Brigadier Clark.
North Africa District.
Mr. R. L. Cochran.
Chief Representative Mediterranean
Area, UNRRA.
Mr. G. W. Renchard.
Office of the U. S. Representative.
Major Se A. Goldsmith.
G-5 Section, Ao F. H. Q.
Mr. D. P. Reilly.
Office of the British Representative.
Mr. Rocker opened the meeting by explaining the origins of the pro-
posal and by expressing warn appreciation of the ready response shown
by the French authorities and of the willingness of the Brilish military
authorities to assist in tackling the problem by maintaining the camp
at Phillippeville until UNRRA could take it over. Referring to the note
No. 143/829 of the 7th July by which M. Wassigli had agreed to the re-
ception of the refugees in French North Africa, Mr. Rocker asked whether
the French representatives could specify exactly what was intended by
the statement that the refugees "devront etre soumis entierement aux
lois et regisments francais".
Ma de le Tournelle replied that the French authorities assumed that
since that since the refugees were all civilians, there would be no
question of exterritoriality of the camp and that aty offenses committed
by the refugees whether inside or outside the camp, would be tried before
French courts under French law.
Rocker said that the view of the British military authorities
was that within the cap the British military Commandent should have
jurisdiction. The British Army had no desire to accept the commitment
of running the emp. But atter: UNRRA nor the French authorities were
new in a position to maintain it. The British military authorities felt
bound to insist that if they were to accept responsibility for the camp,
their jurisdiction within its perimeter should not be is.question.
223
Regraded Unclassified
He de la Tournelle said that he saw no difficulty at all over the
Commandant having full responsibility for punishing offences against the
disciplinary rules of the camp, but that it was very difficult for the
French authorities to admit that the Commandant could have jurisdiction
as regards offences against French law.
L Grau said that it was not possible to make a distinction between
offences against French law committed inside and outside the camp. The
French authorities wished to treat the refugees as allies with the right
to circulate freely outside the camp. In return they must ask that the
refugees should be at all times subject to the jurisdiction of the French
courts.
Brigadier Clark said that so long as the British Army was respons*
ible for the camp, refugees would be forbidden to circulate freely. The
aim would be to keep then in the camp area, but as it was not fenced, it
was impossible to guarantee that they would not break out. The great
majority would, however, be women with small children, old people and
cripples, so that they would certainly not be able to go far afield.
So long as the British Army was responsible for the eamp none would be
employable outside the camp and arrangements would be made to give them
occupations inside it such as mursing, beot repairs, etc.
He considered that a distinction should be made between day-to-day
offences, such as theft, which would be adequately dealt with by camp
discipline, probably administered by the refugses themselves under the
supervision of the Camp Commandant, and any serious offences committed
in the camp and beyond the power of the Commendant to deal with which
would normally be handed over to the French civil courts for trial. He
thought that serious effenees would be rare. Offenses committed outside
the camp would be tried by the French Civil Courts, though he hoped that
in the case of minor offences, the French authorities would allow offen-
ders to be dealt with under camp discipline. The French authorities
would of course be entitled to ask that refugees committing offences
outside the camp and then taking refuge in it, should be handed over to
them for trial but he considered that the decision whether to hand over
the refugees should be with the Superior British Military Authority.
Brigadier Clark emphasized that the small British staff of the camp
and their Jugeslav assistants would have a very heavy task. He could
not guarantee that difficulties would not arise. But he greatly hoped
that they would be settled locally in a spirit of conciliation and of
give and take, and that only major matters of pelicy would be referred
to Algiers. Be appreciated to the full the difficulties which the whole
preposal involved for the French authorities conserned. It was his ear-
nest desire to ecoporate with them to the utmost possible extent.
22
Regraded Unclassified
In answer to an enquiry from the French representatives regarding
the position of the Jugeslav Government in relation to the camp, Brig-
adier Clark said that no one would have access to the camp without per-
mission from the British military authorities. Passes would of course
not be unreasonably withheld from properly accredited representatives
of ..g. the Jugeslav Government, but he bad no intention of allowing
representatives of unauthorised bedies to visit the camp.
The French Representatives said that the plans for the ecmp as now
explained to them, entirely changed the propesal, as they hed understood
1ts They had thought that the refugees would be free to leave the comp
every day for work etc. and it was mainly for this reason that they had
been particularly anxieus that the refugees should not be subject to two
separate jurisdictions. In the light of the information given at the
meeting they would have to refer the whole question back to the Commin-
sieners concerned. They thought that the distinction proposed for offen-
ces committed within the eamp, 1. eos between minor offences, which,
though punishable under French law, sould be adequately dealt with by
camp discipline, and serieus offences, which must be tried by French
courts, would prove acceptable. Me de la Tournelle suggested that it
should be the task of the propesed Joint Committee to decide which offen-
ces should be punishable under Camp discipline and which should be reser-
ved for the French courts. For this purpose the rules of the camp should
be drawn up in agreement with the Jeint Committee.
Brigadier Clark stated that as principles and precedents were invol-
ved it would be necessary for the General Officer Commanding North Africa
District to refer the matter to AFHQ. He further stated that, when agree-
ment had been reached with AFHQ, he would be willing, with the permission
of the General Officer Commanding North Africa District, to make himself
available to explain to the Committee the general principles to be applied
in framing the military Directive to the Commandant of the Camp, on which
the latter would frame his military Standing Orders.
After further discussion the meeting agreed that the French autheri-
ties should be asked to accept this as a basis for dealing with the ques*
tion of jurisdiction.
If agreement could be re ched the propesed Joint Committee would
than have no raisen d'etre. ME hos meetings could be called to deal with
any special point that might arise and was incapable of selution en a
lewer level.
225
RESTRICTED
No. 1918
Quito, Equador, August 3, 1944
Subject: Assistance to Victims of Enemy Oppression.
The Honorable
The Secretary of State,
Washington.
Sir:
Referring to the Department's circular sirgram
received June 23, 1944 (the date of which is not ligible),
requesting that there be conveyed to the Bouadoran
Government the message which the President of the United
States delivered to the Congress on June 12 in regard to
assistance to victims of energe oppression, I have the
honor to enclose a copy, with translation, of a note
dated August 1, 1944, from the ninister for Foreign Affairs
on this subject.
Respectfully yours,
Enclosures:
1. Copy of a note from the
Minister file Pereign Affairs
2. Translation of note
Original to the Department of State
Copy to the Consulate General, Guayaquil
File No. 840.1
JWG:rab
Regraded Unclassified
226
Enclosure No. 2 to despatch No. 1918 of August 3, 1944, from the American
Embassy, Quito Roundor.
REPUBLIC OF ECUADOR
Ministry of Foreign Affairs
Diplomatic Department
No. 27-D-7
Quito, August 1, 1944
Mr. Ambassador:
I have the honor to state to Your Excellency that I have received
your esteemed note No. 240 dated the 30th of last month (sic.) in which, as I
was informed, you complied with direct instructions from your Government in
bringing to my knowledge the text of the message which His Excellency, President
Roosevelt, addressed to the Congress of the United States of America on June
12 of the present year regarding the activities which are being conducted for
the assistance and defense of the victims of Nasti persecution.
I have read with the greatest attention the text of that important
document, in which His Excellency, the President of the United States of America
makes clear the profound concern which he feels regarding the state inot which
thousands of persons have fallen who have not been able to escape from ensmy
persecution and the seal with which he is seeking the solution of this problem
of an essentially humanitarian character.
Reuador shares the noble sentiments which inspire the policy of the
United States and of its illustrous leader; it applauds the many neasures which
are being taken for giving to those insumerable persons who are without refuge
the aid of the guarantees and privileges which are afforded by the democracies
and in a particular way it is pleased that it is America which is opening its
gates in order that in its lands there may be rehabilitated those who have
suffered the rigors of the racial and ideological persecution.
I an grateful to Your Excellency for having brought to my knowledge the
text of this very important message and I avail myself of the opportunity to
renew the assurances of my highest and most distinguished consideration.
(signed) c. Ponce Enriques
Mr. Robert McGregor Scotten
Ambassador Extraordinary and Plenipotentiary
of the United States of America
City
TR:JWO:rab
Regraded Unclassified
227
CABLE TO AMBASSADOR WINANT, LONDON, FROM WAR REFUGEE BOARD
Reference is made to your 6054, July 29th. Please transmit the
following message to Emerson, Intergovernmental Committee on Refugees:
QUOTE The Bobkin-Weissman proposal for the removal of
3,000 Jewish children from France is, as you doubtless
know, a variant on a scheme which has been repeatedly
presented to the French and Germans with negative re-
sults. We are perfectly willing to join you in any re-
quest you may see fit to make to the International Red
Cross to approach the French on this proposal. In view,
however, of the small numbers of children who have been
arriving in Switzerland and wlsewhere from France, and
the apparent opportunity to save Hungarian children, ar-
rangements are being made to make the 5,000 American
visas which have been available only for children from
France, available as well for children from Hungary and
elsewhere in occupied Europe. UNQUOTE
4:20 p.m.
August 3, 1944
AAbrahamsonsLSLesserstmh 8/2/44
Regraded Unclassified
228
CORRECTION
NJB
PLAIN
August 3, 1944
In telegram No. 6074. Thirty-first, from Lenden,
reference telegram in second paragraph should read
"(Reference Mmbassy's 6040, July 29)".
DIVISION OF COMMUNICATIONS AND RECORDS
Note: Cerrection from the Nabassy
MJK
Regraded Unclassified
229
August 3, 1944
2 p.m.
BJR
This telegram must be
paraphrased before being
communicated to anyone
other than a Government
Agency. (SECRET 0)
AMEMBASSY,
LONDON.
6121
Minister Harrison at Bern, in telegram of July 29, supports
proposal made by WRB representative (reference penultimate
paragraph Department's 6035, July 31) that exceptional per-
mission be granted to distribution of at least part of salvaged
Christina cargo to concentration camps by Intercross in form
of individual parcels. He emphasizes that decision must be
reached in near future since after end of September these
goods will not be suitable for consumption.
STETTINIUS
Acting
(EDK)
800.142/7-2944
SWP:EDK:XHJ 8-1-44
WRB
SICR
Regraded Unclassified
230
DEPARTMENT
PLAIN
August 3, 1944
AMEMBASSY,
LONDON
6134, Third
With reference to paragraph two your 16167 June 8
kindly advise Intergovernmental Committee that this Govern-
ment will be represented by Ambassador Winant who is hereby
appointed as delegate at Plenary Meeting Augu st 15. If necessary,
the Ambassador may designate a substitute delegate and so advise
the Committee.
With reference paragraph two your 16242 June 12 the
delegate or substitute delegate is authorized to accept on
behalf of this Government the draft rules and regulations
to be presented at Plenary Committee meeting, with such
amendments as Plenary Committee may approve.
STETTINIUS
ACTING
(GLW)
WRB:GLW:OMH S/CR BC
8/3/44
Regraded Unclassified
231
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, London
TO:
Sedretary of State, Washington
DATED:
August 3, 1944.
NUMBER: 6193
/
CONFIDENTIAL
In our message dated July 31, Number 6087
we reported the informal reply we received immediately
after we delivered the substance of telegram from the
Department, dated July 28, Number 5948, to the Foreign
Office.
The Embassy has just received 6. telephone nes-
sage from the Refugee Section of the Foreign Office which
says that our note, which was based on telegram from the
Department, Number 5948, is to go before the War Cabinet
tomorrow, and that complete reply will be sent through
the British Embassy, in Washington to the Department. At
the same time, the Foreign Office will transmit the gist
of this reply to us.
WINANT.
DCR:LCW 8/5/44
Regraded Unclassified
232
CABLE FROM WAR REFUGEE BOARD TO ACKERMANN, AMERICAN CONSULATE
GENERAL, NAPLES, ITALY.
The War Refugee Board has no objection to your adding
a man to your staff pursuant to the arrangements mentioned
in your 104 of July 29.
THIS IS WRB CABLE TO NAPLES NO. 41
4:20 p.m.
August 3, 1944
MJMarks/sg 8/3/44
Regraded Unclassified
233
PLAIN
War Refugee Board
August 3, 1944
AMEMBASSY,
MEXICO
1461, Third
War Refugee Board has been informed by Joint Distri-
bution Committee that President of Mexico has recently
issued a proclamation stating that Mexico will furnish
facilities for admission of refugees from enemy occupied
Europe for the duration of the war. Kindly secure and cable
if possible text of proclamation for use by Board in deal-
ing with offer by Hungarian Government to permit emigration
of refugees from Hungary.
STETTINIUS
(ACTING)
(GLW)
WRB:GLW:OMH S/CR MA
8/3/44
Regraded Unclassified
RESTRICTED
234
Mexico, D.F., August 3, 1944.
No. 19191
Subject: Statements in the press to the effect that
the Mexican Government has indicated its
willingness to establish "a port of refuge"
for the period of the War for refugees from
Europe.
The Honorable
The Secretary of State,
Washington, D.C.
Sir:
I have the honor to refer to instructions of the
Department with respect to the establishment of the War
Refugee Board and to the effect that this Embassy is to
bring to the attention of the Mexican Government full
information with regard to the establisment of the Board
and its activities. In this connection I would like to
refer to previous despatches of this Embassy, end more
particularly to my despatch no. 17235 of April 27, 1944,
in which I gave some background information on the possi-
bility of collaboration by the Mexican Government with
the War Refugee Board.
Several weeks ago Mr. Jacob Landau of New York, whom
I have known for many years in Europe and in the United
States called at the Embassy to state that he was in
Mexico City on a mission for the War Refugee Board and that
he was awaiting the arrival of Mr. Morris Waldman of the
American Jewish Committee, who was to accompany him on this
mission here and on a similer mission to others of the Ameri-
can Republics. I told Mr. Lendau that while I had no specific
instructions with regard to the mission on which he and
k. Waldman were engaged, I would be very happy to see them
both on the arrival of Mr. Waldman.
in the meantime I received a telegram from the Depart=
ment stating that Mr. Landau and Mr. Waldman were traveling
to Mexico and to other countries of the Americas on a mission
for the War Refugee Board and that I was to accord them
appropriate air priorities to facilitate their travel. I
have no direct information from the Department other than
this, that Mr. Waldman and Mr. Lendau are on a mission for
the War Befugee Board, but in view of my long personal
acquaintance with them and in view of my knowledge of their
full dependability, I have been proceeding on the basis of
the information which they have given no with respect to
their mission.
When Mr. Waldman arrived in Mexico City, he and
Mr. Landau came to see me, and they informed no that the
purpose
Regraded Unclassified
235
- 2 -
purpose of their trip was to endeavor to persuade the
appropriate Mexican authorities, and those of other
American countries to the south, to establish "porte of
refuge" for refugees from Europe, these ports of refuge
to be used during the period of the War for the shelter
of such refugees and at the end of which period, they
would return to their country of origin, or at least leave
the port of refuge.
They stated that they were undertaking this mission at
the request of the War Refugee Board.
Mr. Weldman and Mr. Landau informed me that they had
already been in touch with the Minister of Gobernacion,
Mr. Aleman, to whom they had been introduced by Mr. Lombardo
Toledano, to which Minister they had set forth their desires
and plans. Mr. Landau explained that they had made the
approach to the Mexican Government in this manner in view of
the fact that he had met Mr. Lombardo Toledano in the United
States and on his arrival here, he had called on him and
Mr. Lombardo Toledano had offered to assist them in this
matter and to arrange for an interview with the Minister of
Gobernacion, Mr. Aleman. Mr. Landau stated that when
Mr. Lombardo Toledano presented them to the Minister of
Gobernacion, he made a very strong plea for the establishment
by the Mexican Government of such a port of refuge. Mr. Landsu
stated that the Minister had expressed his interest and his
willingness to discuss the matter with the President of Mexico.
I informed Mr. Waldman and Mr. Lendeu that while I had
no instructions from my Government with specific reference
to their mission, I considered that the telegram which I had
authorizing me to have an air priority for travel to the
south and the previous instructions which I had with regard
to the War Refugee Board were sufficient basis for me to
facilitate their mission in the measure possible. I frankly
told them that although I had been much interested in this
refuges problem and still was, and had naturally given it a
great deal of attention since I have been in Mexico, that
I did not find the attitude in either official circles or
among the Mexican people particularly receptive to receiving
refugees except of a certain type from Europe. In this par-
ticular respect I would again refer to my despatch no. 17235
of April 27, 1944, in which I gave background information on this
situation in Mexico. I told them, however, that in view
of the well known humanitarian attitude of the President
of Mexico and of the Mexican Government in general, and as
their project did not involve the refugees remaining indefinitely
in Mexico, I considered it probable that a receptive attitude
might be found.
I told Mr. Waldman and Mr. Landau that as they had taken
up the matter with the Minister of Gobernacion on their own
initiative and without any intervention of this Embassy, or
previous consultation with us, and as the Minister of Governacion
was one of the responsible Ministers primarily charged with
matters of this kind, I thought it best to continue the channel
they had been using. I said that the Ministry of Gobernacion
was the Ministry primarily responsible in reaching a decision
of this kind but that it would orginarily be made in consults
tion with the Ministry of Foreign Relations.
When
Regraded Unclassified
236
When I found that no approach had been made to the Ministry of
Foreign Relations, I suggested to Mr. Waldman and Mr. Landau that
they give no a memorandum covering exactly what they wished to do
and specifically what they had said about their plan to the Minister
Regraded Unclassified
of Gobernacion, in order that I might leave this with the Minister
for Foreign Relations for his information. I said that it was in
any event probable that the President would consult the Minister
for Foreign Relations before reaching a decision and that I would
like at least to give to the Minister for Foreign Relations a
definite statement of what was involved in the "port of refuge".
Messrs. Waldman and Landau prepared a memorandum, of which I
transmit a copy herewith, and which is self-explanatory.
At the first opportunity that I had after the conversation
with Messrs. Waldman and Landau, I informed the Foreign Minister
of the presence of Mr. Waldman and Mr. Landau in Mexico City on
this mission for the War Refugee Board and stated that they were
already in touch, through arrangements that they had made on their
own initiative, with the Minister of Gobernacion, The Minister, Dr.
Padilla, indicated that he had not yet received any other information
on this matter and had not yet been consulted by the Minister of
Gobernacion. I, therefore sent him after this conversation a copy
of the memorandum prepared by Messrs. Waldman and Landau,
In the Mexico City newspapers of August 2, there appeared
a statement to the effect that the Mexican Government had announced
that it was prepared to establish a port of refuge. Although the
announcements in the newspapers were to the effect that the infor-
mation came from official sources, I thought it was well to determine
whether there had been action officially by the Mexican Government,
and I got in touch with Mesers. Waldman and Lendau, who informed
no that this notice in the newspapers under reference was the first
indication they had of favorable action, but that they would confirm
it, They later informed me that they had assured themselves that
the Ministry of Gobernacion had issued this statement, which had
appeared in the press.
Messrs. Waldman and Landau indicated that they would like
immediately to telephone to Mr. Friedman of the War Refugee Board
in Washington, who is acting for Mr. Pehle, the Executive Secretary
of the Board. In view of the fact that telephone communication is
much delayed and in view of the official character of the War
Refugee Board, I arranged for a telephone call by the Embassy to
Mr. Friedman and during the telephone conversation with Mr. Friedman
in Washington on August 2, Mr. Landau informed him that the Mexican
Government had issued a statement to the press that day that it is
prepared to set up a safety port for Jewish refugees from Europe,
particularly women and children; that the Mexican Government is not
prepared to accept any financial responsibility for the transpor-
tation and maintenance of these refugees; that it stipulates that
they will not engage in any occupation or business while in Mexico
and that they will be repatriated upon the termination of the War,
Mr. Landau informed Mr. Friedman that the Mexican Government
wished guarantees to this
effect
237
- 4
effect and he suggested that Mr. Friedman got in touch
with Mr. Hyman or Mr. Levy of the Joint Distribution Come
mittee and urge that one of them come to Mexico within the
next day or two in order to furnish written guarantees is
the manner desired by the Mexican Government. Mr. Friedman
informed Mr. Landan over the telephone that he would be able
to do this,
While I have no official confirmation from the Mexican
Government, either from the Ministry of Foreign Relations or
the Ministry of Gobernacion, to the effect that the Mexican
Goverament has taken this action, there are further statements
in the press this morning which indicate that action in the
foregoing sense has been taken by the Mexican Government.
In view of the fact that the contact in this matter has been
entirely between Mr. Waldman and Mr. Landau and the Ministry of
Gobernacion, I shall necessarily let the matter remain in
that channel,
I have told Mr. Waldman and Mr. Landau that in any way
that I can properly assist them in this matter, I shall be
very glad to contimue to do so, I have made it clear to
them, however, that if say refugees are to be brought here
to such a port of refuge, the Mexican Government will insist
upon very definite guarantees: (1) that it will not accept
any financial responsibility for transportation or maintenance;
(2) that the refugees will not engage in any gainful occupa-
tion or business while at the port of refuge; and (3) that
they will be repatriated at the end of the War, Mr. Waldman
and Mr. Landen informed ne that the appropriate guarantees
for maintenance, etc., will be given by Jewish organizations
of a private character in the United States, such as the
Joint Distribution Committee.
In this connection I may say that in a conversation
with the Minister for Foreign Relations, I informed his
that I had had close contact with the work of the Joint
Distribution Committee over a period of many years and that
I could inform him informally that any guarantees given by
the Committee would be net meticulously.
While I an very happy that this action is being takes
by the Mexican Government, I think it is in no way indicative
that Mexico is prepared to receive any number of Jewish
refugees and, in fact, certain other refugees from Europe
for permanent residence and integration in her economic life.
The preliminary announcement in the press of the proposed
action of the Mexican Government in establishing & port of
refuge for the duration of the War has not been received
without criticism from sections of the Mexican press. I
have taken the opportunity of my long friendship with
Mr. Waldman and Mr. Landen, and my full appreciation of the
humamitarian work in which they are engaged, to give them
for their confidential background the best information in
my power with regard to the real situation here and with
regard to the possibilities of settling Jewish refugees,
and certain other refugees, in this country.
If
Regraded Unclassified
- 5 -
If any further information develops in this matter
which will be of interest to the Department, I shall not
Regraded Unclassifi 236
fail to keep it informed.
After completing this despatch to this point, Mr. Landau
called no on the telephone to say that Mr. Waldman and he
had just been received by the Minister of Gobernacion,
Mr. Aleman, who had informed them that a port of refuge was
agreed upon by the Mexican Government under certain conditions
which I understand are those already set forth in this despatch.
E. Landau said that Mr. Waldman and he had called upon the
Minister of Gobernacion, Mr. Aleman, to express their thanks
and that of the War Refuges Board for the action which they
understood from the press the Mexican Government was taking
in this matter. It was then that Mr. Aleman confirmed to
them that the Mexican Government would take this action.
Mr. Landau further said that arrangements had been
made for him and Mr. Waldman to call upon the President of
Mexico in order that they might have an opportunity to ex-
press personally and directly to the President their appre-
ciation of the action to be taken by the Mexican Government.
There has been, so far, no official statement of the
Mexican Government with regard to this action other than
brief articles in the press, obviously coming from the
Ministry of Gobernacion. There has been no proclemation
by the President or no decree as yet issued, or at least
published, and up to this writing, the Ministry of Foreign
Relations has apparently not been consulted in the matter
by the Ministry of Gobernacion.
I an,
Respectfully yours,
George 8. Messersmith
Enclosure:
Memorandum.
848-War Refugee Board
(Original and 4 copies to the Department)
GSM/esa
239
American Embassy, Mexico, Do F.
Enolosure to Despatch No. 19191, August 3, 1944
MEMORANDUM
Mr. Morris De Waldman, Vice-Chairman of the Central Jewish
Committee and Mr. Jacob Landau, member of the Executive Committee
of the Central Jowish Committee arrived in this country a few days
ago. The American Jewish Committee is an outstanding Jewish organism
tion to which the most prominent Jews in America belong.
The trip of these two gentlemen is sponsored by the War Refuse
goe Board, which was recently established by President Roosevelt
for the resoue of Jewish and Christian victims of nasi tyrrany. It
is composed of Mr. Cordell Hull, Secretary of State, Mr. Henry Stim-
son, Secretary of Mar, and Mr. Henry Morgenthau, Secretary of Treasury.
The purpose of this trip is to ascertain whether President
Manuel Avila Camacho would be prepared to establish a safety port,
like the one very recently established in the United States by
President Roosevelt.
It is not anticipated that my refugees would actually reach
the safety port. The safety port would be, in the main a moral
gesture indioating the interest Mexico is taking on humanitarian
grounds in the lot of innooent persons who are being rathlessly
exterminated by our common enemy.
The safety port would meroly provide, as the name indicates,
a temporary asylum for the duration of the war. It is not suggested
that they would be allowed to work, or to freely move around the
country.
Should my refugees arrive in this country, Mr. Waldman and Mr.
Landau are prepared to guarantee on behalf of the philanthropic
Jewish organisations in the United States, that all expenditures in-
volved would be borne by them and that these refugees will not bew
come a burden to Mexico.
It is further suggested by Mr. Waldman and Mr. Landau that a
presidential promunciamiento, establishing a safety port could limit
the number of Jews to be admitted to five or six hundred, or what-
ever the Government may deem advisable. They are both hopeful that
Mexico will be the first Latin American country to indicate this
humanitarian interest in the mission which brought them here.
Mr. Waldman and Mr. Landau, before leaving the United States,
I am informed by them, were received by Mr. Cordell Hull, who
expressed his deep interest in their mission and emphatically
expressed the hope that they would succeed.
Mexico, DeFs, July 25th, 1944.
NOTE: This memorandum was prepared by Messrs. Waldman
and Landau at my request and for my information.
I gave a copy informally to the Minister for
Foreign Relations for his information. Mossrs. Landau
& Waldman inform me that they gave a copy of the
memorandum in Spanish to the Minister of Gobernacion,
Mr. Aleman.
G.S.M.
Visa Chaunosy (For the Sec'y), Abrahamson, Cohn, DuBois, Friedman, Hodel, Laughlin,
Lesser, Mann, Marnon, McCormack, Cable Control Files
Regraded Unclassified
240
CABLE TO LISBON
From War Refugee Board for Norweb
Please deliver following message to Joseph Schwartz,
242 Rua Aurea, Lisbon, from Moses A. Leavitt of American Jewish
Joint Distribution Committee:
"Assume you saw agreement Pilpel signed regarding
rescue care refugees from France Stop Would appreciate
your earliest comments Stop Remitted $100,000 to Gilbert
Simond Ankara Stop Unless you have very cogent reasons
for remaining Lisbon we most anxious have you return here
immediately for short stay for consultation many urgent
current problems."
THIS IS WRB CABLE TO LISBON NO. 69
10:05 a.m.
August 3, 1944
EBTowler:agr 8-2-44
Regraded Unclassified
AIR MAIL
NO. 804
241
Lisben, August 3, 1944.
RESTRICTED
Subject: Statement Regarding Claimants to American and
Central American Citizenship, recently Deperted
from Vittel.
The Henerable
The Secretary of State
Washington
Sir:
I have the hener to refer to the Embassy's telegram No. 2393,
August 2, 1944 (WRB-135), and to enclese a copy of a letter of
teday's date to the American Minister in Bern on the above subject.
This letter tegether with a copir of the decuments mentioned therein,
which were also sent to the Department under cever of the Embassy's
despatch No. 789, July 31, 1944, has been addressed to Bern in
accerdance with the Department's telegram No. 2146 (WRB-68) August 1,
1944 7 P.M. It is heped that this letter with its enclesures will
reach Bern without delay.
It is believed that the War Refugee Beard will be interested
in this despatch and its enclesure, and if the Department perceives
no objection, it is requested that copies be transmitted to it.
Respectfully yeurs,
For the Ambassader:
Charles B. Dickersen, Jr.
First Secretary of Embassy
Enclesure:
Copy of letter to American Minister, Bern.
RCD:ew
Regraded Unclassified
242
COPY
Lisben, August 3, 1944
The Henerable,
Island Harrisen,
American Minister,
Born.
Sir:
On July 28 this Embassy received a statement from two
British refugees who have since left on the S.S. DROTTNINGHOLM
regarding the situation of claimants to nationality of various
countries in North and South America who were deperted from
Vittel during their stay there. The Embussy immediately
cabled to the Department giving the substance of the informa-
tien and asking for instructions as to its mest immediate use,
since the matter was one of great urgency.
Imediately thereafter the Embassy sent Washington a
despatch by air mail with complete details. The Embassy has
now received a telegram asking it to previde your Missien with
these details. I an therefere enclosing a copy of our despatch
No. 789, dated July 31, 1944, to Washington tegether with the
statement and the list of such American claimants.
In the telegram above referred to which was received from
Washington the Rubassy was informed that your Mission and
particularly Reas McClelland, Representative of the Was Refugee
Beard there, are fully familiar with these preblems and can
take such action as is necessary, either with the Swiss Fereign
Office or the International Red C_ess.
Sincerely yours,
Enclesures:
Copy of despatch No. 789
Copy of statement of claimants to American and Central
American Citizens.
Regraded Unclassified
FIR6-458
PLAIN
243
Lisbon
Dated August 3, 1944
Rec'd 6:17 a.m. 4th.
Secretary of State,
Washington.
2396, August 3, 1 p.m.
FOR LEAVITT FROM SCHWARTZ. WRB 136 JDC 41.
Mordecai Kessler Algiers advises repatriation
remaining Tripolitanian refugees now French North
Africa being carried out. Since shipping not presently
available seventy three have recently departed from
Tunis by car and ninety nine leaving next (*) days.
Balance of Tripolitanians in Tunis Sfax, Algeria and
Morocco being transported train to Tunis where they
will be required stay thirty days for clearance before
proceeding Tripolitania by motor vehicles. Expense
of travel by car adult is 1000 france which we under-
stand being borne by British Government.
NORNEB
KR
(*) apparent oxission
Regraded Unclassified
244
KD-239
Lisbon
Distribution of true
Dated August 3. 1944
reading only by special
Rec'd 3:57 p.m.
arrangement. (SECRNT-W)
Secretary of State
Washington
2398. August 3, 1 p.m.
THIS WRB 137 JDC 42 FOR LEAVITT FROM SCHWARTZ.
First consignment feed packages for laber camps
Yugeslavia left Switserland through Intercress.
Further shipments expected.
Salymayer started relief in Hungery with funds
sent through WHB. Third of sus being used purchase
of feed within Hungary. 200,000 pengees allocated
first Grautchild Welfare 1200 Fabbie end other Hungarian
Jewish religious leaders passed through Slevakia in
reute to Bergembelsen near Henover. Lecal Slevakian
committee has been alletted funds to provide for other
expected conveys and to take care local needs.
For relief in Shanghai 22,700,000 Chinese dellars
transmitted for July compared with one 6,300,000
June and 11,800,000 May. For June Shanghai requested
30,000,000. 340,000 U.S. dellars equivalent to July
budget.
NORWEB
Regraded Unclassified.
245
LFU-461
PLAIN
Lisbon
Dated
August 3, 1944
Rec'd 6:50 a.m., 4th
Secretary of State,
Washington.
2400, August 3, 5 p.m.
FOR LEAVITT FROM SCHWARTZ JDC 43 WRB 138.
Following are budgetary requirements Jewish communities
Turkey for 1944 over and above any appropriations or
remittances proviously made Istabul 100,000 Turkish
pounds of which 73,000 represent actual deficits incurred
on minimal budgets balance urgently required for
immediate repairs without which institutions cannot
continue function. Ismir 50,000 Turkish pounds.
Bruasa 9,000 Rdirne 9,000 Ankara 9,000. Total amount
requested and required for current activities 177,000
Turkish pounds at premium rate 1.80 to dollar. As you
know there are kasas established by us functioning
in Istanbul and Ismir for which additional funds are
requested in order to enable them to increase amounts
to individual borrowers view tremendously increased
costs goods materials and conducting businesses. In
this connection Brussa is asking for a special allocation
of 6,000 pounds for a small loan society and Ismir
is asking for a grant of 30,000 pounds for their dassa.
Should Passman proceed Istanbul will ask him look
into situation and make recommendations. Meantine
advise whether reconstruction committee interested and
able help this connection. All remittances for Turkish
communities to be made Hollantse Bank Uni Istanbul for
Grand Rabbinate.
NORWEB
RR
Regraded Unclassified
246
CABLE TO AMERICAN LEGATION, STOCKHOLM, FOR OLSEN
Please deliver following message from War Refugee Board to
Chief Rabbi Marous Ehrenpreis, Stockholm Jewish Community, Stockholm,
Sweden:
QUOTE Referring your message concerning funds for
Rumania, JDC states that Saly Mayer has been in cobstant
touch with Filderman and other leaders Rumanian Jewry.
JDC has received confirmation from responsible sources
that funds have been and are being secured locally in
part through method of borrowing against the credit of
the JDC for later reimbursement. JDC affirms that it
follows vigilantly situation Rumanian Jews. A. Leon
Kubowitski, World Jewish Congress, New York. UNQUOTE
THIS IS WRB CABLE TO STOCKHOLM NO. 67
5:20 p.m.
August 3, 1944
LSLesser:tmh 7/31/44
Regraded Unclassified
247
KD
August 3, 1944
Distribution of true
reading only by special
8 p.m.
arrangement. (SECRET-W)
AMLEGATION,
STOCKHOLM
1551
The following War Refugee Board cable 66 is for Olsen.
1. Refer Department's 1246 of June 23, WRB's 30,
penultimate paragraph. Alfred Halasz, Budapest, said to be
secretary general of printers' union, suggested by Ignatz
Schultz whose name should be used.
2. Express Board's appreciation to Wallenberg for
achievements mentioned in your 2779 of July 25, to WRB number
594. Would appreciate estimate of cost of operating suggested
experimental camp as well as your views as to the extent to
which it might be financed without supplying free foreign
exchange to the enemy. Need of protection would appear to be
proper basis of selection.
3. Refer your 2396 of June 30 incorporating your 12 to
Lisbon of same date. Members of same family have arrived in
Switzerland and Amlegation Bern states:
QUOTE From a rèliable source it is stated that the
Jewish director of Akcwsesauys I U, one Wilhelm Bielitz,
organized the departure of these persons and is now try-
ing to come here himself. UNQUOTE
Wallenberg may find it advantageous to contact him.
STETTINIUS
(Acting)
WRB:MMV:KG
NOE
(GLW) SE S/CR
8/3/44
Regraded Unclassified
MAE-451
Stockholm
248
Distribution of true
Dated August 3, 1944
reading only by special
Rec'd 4:02 a.m., 4th
arrangement. (SECRET-W)
Secretary of State,
Washington.
2920, August 3, 3 p.m.
FOR WAR REFUGEE BOARD
From local intermediaries it would appear that the
Rumanian Minister here is very sympathetic regarding
difficulties of evacuating Jews from Rumania. He has
allegedly agreed to forward to Bucharest with his
strong support a request that the Rumanian Government
supply transportation for such evacuations. It was
considered best that the local Swedish Section of the
World Jewish Congress be the initiators of the request.
The Rumanian Minister allegedly appears convinced that
his Government will be receptive to this request and
anxious to take any step which might bring it good will.
He also allegedly seems sure that on the basis proposed
the Germans will not be in a position to refuse safe
conduct. He is allegedly very uncertain, However,
whether the Rumanians now have any vessels suitable
for such evacuation, since most transport vessels
were said to have been either sunk or badly damaged
in the evacuation from Odessa. I n the event that it
should become established that suitable vessels are,
in fact, not available the Rumanian Minister has pointed
out the following possibilities:
(One) The two Rumanian boats presently in Istanbul
perhaps can be used. These were mentioned in our No. 48
for WRB (Legation's 2538 of July 9, 11 a.m.).
(Two) Possibly certain suitable Rumanian vessels,
damaged at Odessa, were able to get back to Rumanian ports. If
if were possible to replace the damaged instruments in Turkey,
perhaps two or three boats could be made serviceable.
The Swedish Section of the World Jewish Congress
has assured the Rumanian Minister that it will guarantee ex-
penses of any such voyages, and it in turn will look to the
World Jewish Congress for the necessary financial support.
As previously indicated, local Rumanian Minister
allegedly feels very optimistic concerning this proposal
and is forwarding it by courier to his Government in
Bucharest. Apparently he dismisses entirely the poss-
ibility of any German interest in seizing serviceable
Rumanian vessels on the grounds that German troop
transport
Regraded Unclassified
249
-2- #2920, August 3, 3 p.m., from Stockholm
transport requirements in the Black Sea have long since
passed cand that the Germans should have no further in-
terest in such vessels.
The Board's comments would be appreciated.
JOHNSON
- JT
WTD
Regraded Unclassified
250
CABLE TO AMERICAN LEGATION, BERN, FOR McCLELLAND
Please deliver following message from War Refugee Board to
Dr. Gerhard Riegner, 37 Quai Wilson, Geneva:
QUOTE Referring again your message of June 14,
JDC states that Saly Mayer has been in constant touch
with Filderman and other leaders Rumanian Jewry. JDC
has received confirmation from responsible sources that
funds have been and are being secured locally in part
through methods of borrowing against the credit of the
JDC for later reimbursements. JDC affirms that it
follows vigilantly situation Rumanian Jews. A. Leon
Kubowitzki, World Jewish Congress, New York. UNQUOTE
THIS IS WRB CABLE TO BERN NO. 111
5:20 p.m.
August 3, 1944
LSLesser:tmh 7-31-44
Regraded Unclassified
251
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
August 3, 1944
NUMBER:
2667
CONFIDENTIAL
FOR McCLELLAND
Reference your 4223 of July 3 and the Department's 2490 of
July 21, WRB's 78.
Information has reached the Board that on May 16 further
deportations from Vittel took place. Please make all appro-
priate inquiries to determine whether this report is correct.
If it is, please make efforts in the manner outlined in Depart-
ment's 2490 of July 21, WRB's 78.
THIS IS WRB BERN CABLE NO. 110.
STETTINIUS
(Acting)
Regraded Unclassified
252
KEM-169
Bern
This telegram must be
paraphrased before being
Dated August 3, 1944
communicated to anyone
other than a Government
Rec'd 10:19 a.m.
agency. (RESTRICTED)
Secretary of State,
Washington.
4967, August 3, 9 p.m.
FOR WRB FROM MCCLELLAND FOR NAHUM GOLDMANN
WORLD JEWISH CONGRESS FROM GERHART RIEGNER.
"You are certainly aware of ICRC's official
communique concerning Hungary. On the occasion of
Guggenheim Burckhardt conversation of July 21 following
details obtained. ICRC communique is nearly identical
to and based on official communique of Hungarian Govern-
ment to ICRC transmitted by Hungarian Charge d'Affaires,
Bern, July 18. ICRC obtained full power and now seeking
carry out various points. We emphasized responsibility
of ICRC and necessity of strict control execution of
promises, notably cessation of deportation. We pressed
ICRC dispatch large delegation to Budapest charged with
distribution of relief. ICRC showed tendency desire
act through Jewish Council presided by Hofratstern but
we urged matter remain primarily in ICRC hands since
they would have more liberty of action and be more
independent of Hungarian Government. We made also
reservation
Regraded Unclassified
253
-2- #4967, August 3, 9 p.m., from Bern.
reservation on personality Stern, 80 years of age,
and insisted on principle of non-discrimination between
Hungarian and foreign Jews. We proposed collaboration
between ICRC Mission which would be officially responsible
and special Jewish committee in which Jewish groups in
Hungary would be represented. Question possibilities
purchase foodstuffs in Hungary not yet resolved but if
impossible ICRC ready put disposal Swedish ICRC steamer
HALAREN which could carry foodstuffs to Trieste. In any
case, considerable amounts will doubtless be necessary
which Jewish organizations will probably not be able to
furnish without governmental aid. Therefore propose
former vast rescue plan of last year be at least partly
revived with regard to Hungary now that ICRC has obtained
broad power of control. Insisting also our personal
participation to a certain extent view obtaining
influence over whole proceeding. Concerning departure of
children, ICRC already asked that age limit originally
fixed at 10 be increased. Switzerland ready accept
certain number Hungarian children and negotiations are
also going on concerning Swedish proposal. ICRC is
willing to deal with emigration to Palestine. Our
opinion, however, is that matter should be left for time
being in hands of protecting power. ICRC in general
very proud
Regraded Unclassified
254
-3- #4967, August 3, 9 p.m., from Bern.
very proud of their success in matter Hungarian Jews
which they very much needed for their political position.
Our duty is therefore insist by all means on strict
execution of promises obtained and on extension of
promise cessation deportations from other camps in
various countries such as Drancy, Malines, Westerbork,
Fossoli, et cetera."
HARRISON
JJM RR
Miss Chauncey (For the Sec'y), Abrahamson, Akzin, Borenstein,
Cohn, DuBois, Friedman, Gaston, Hodel, Laughlin, Lesser,
Mann, Mannon, Marks, McCormack, Pehle, Sargoy, Standish,
Stewart, Weinstein, Cable Control Files.
Regraded Unclassified
KD-342
BERN
255
This telegram must be
Dated August 3, 1944
peraphrased before being
Rec'd 3:30 p.m.
communicated to anyone
other than B. Government
agency. (HESTRICTED)
Secretary of State
Washington
4972, August 3, 9 s.m.
Referring to present situation of Jews in Hungary
Burckhardt of ICRC communicated to me message received
July 31 from Dr. Scnirmer (formerly in Berlin) and Bern
ICRC representative in Budapest substance of which follows.
One. Sufficient quantities of food and clothing are
available in Hungary. Funds will be needed, however, to
purchase foodstuffs for relief to recently dispossessed
Jews in Budapest and more particularly to those remaining
in provinces in camps.
Two. Jews in Budapest are now allowed to leave their
houses to maloe purchases between ten and seventeen hours
(formerly only between fourteen and seventeen). Those
possessing adequate means can purchase sufficient food
for their needs. The legitimatation cards of Jews in
Budapest expire on August 1. They will, however, be
granted new ones and according to recent decrees a certain
number of special work permits will be issued to Jews
"whose intellectual or physical labor is considered to be
of public utility".
Three. All internment and concentration camps and
consigned Jewis houses in Budapest will be accessible
to ICRC delegates. Schirmer and Born have visited twenty-
five such houses as well as hospitals and baths. In
latter satisfactory conditions prevailed. They also
visited camps of Kistarcsa and Sarvar on July 2 5. (Accord-
ing to additional information there are other Jewish camps
at Miskolc, Jasznereny and Pecs). ICRC Geneva will be
notified by telegram if and what relief supplies are
necessary for these camps. Transportation facilities in
Hungary will be granted and goods consigned to Hungarian
Red Cross for distribution by ICRC. ICRC may choose
Jewish men of confidence in camps.
Four. Any relief undertaken by ICRC will receive
collaboration of Hungarian Red Cross and of official
"Judenrat" in Budspest. Final control of all distributions
will be in hands of ICRC. Auxiliary relief personnel can
be supplied by Jews themselves. Such personnel will be
exempted from
Regraded Unclassified
256
-3- $4972, August 3, 9 a.m., from Bern
exempted from wearing yellow Jewish star. Adequate space
for officers and storerooms will be made available to
any ICRC Jewish relief program.
Five. About 8,700 Jewish families amounting to some
40,000 souls plus 1,000 orphaned children will be allowed
to emigrate from Hungary to Palestine via Rumania and
Turkey. An initial transport of about 2,000 persons will
leave Budapest within next 8 to 10 days. ICRC will take
charge of departure transportation and care this convoy
en route. Born will accompany first convoy to Rumanian
port of Constanza. Boats are reported to be available.
HARRISON
RR
Regraded Unclassified
PARAPHRASE OF TELEGRAM RECEIVED
257
FROM:
American Legation, Bern
TO:
Sedretary of State, Washington
DATE:
August 3, 1944
NUMBER:
4974
SECRET
McClelland sends the following for War Refugee Board.
The following paragraphs are a continuation of Legation's
August 3 telegram No. 4972 and complete the message from ICRC.
(6) It is expected that in connection with the foregoing
the President of Hungarian "Judnerat", Mr. Samuel Stern, will
leave shortly for Palestine.
(7) ICRC has received repeated assurances indirectly
from the Rumanian Government (through channel mentioned in
Legation's July 5 telegram No. 4257) that necessary transit
facilities from Hungary will be granted for Jewish refugees,
and that as regards the securing of suitable steamers the
Rumanians will give further assistance in any way possible.
Information has also been received by ICRC from the Swiss
Legation in Sofia that the Government of Bulgaria is willing
to grant such overland transit facilities for refugees as
are necessary. END.
Carl Burckhardt desires to transmit personal appeal in
line with paragraph five above and with the Department's
July 28 cable No. 2605, to the American Ambassador in London
expressing his appreciation and that of ICRC for any steps
which could be taken with the British Government to expedite
the admission into Palestine of these 8,700 families at least.
It is strong feeling of Burckhardt that prompt removal of such
refugees from territory of Rumania is essential in order to
insure the Rumanian Government's continued cooperation in
evacuation of Hungarian Jewish refugees.
Paragraph above refers to the Department's July 31
telegram No. 2630 last paragraph; and to Legation's July 29
telegram No. 4896.
Harrison
DCR: EBH 8/8/44
Regraded Unclassified
PARAPHRASE OF THLEGRAM RECEIVED
258
FROM: American Legation, Bern.
TO:
Secretary of State, Washington
DATED: August 3, 1944
NUMBER: 4981.
CONFIDENTIAL
In my message. Number 4983, will be found a
continuation of the fellowing cable.
It is requested that you refer to message dated
July 5 from the Legation. Number 4260.
1. Our note dated June 13, which was delivered
on June 27 to the Hungarian Foreign Office. was not deplied
to in message of July 19, Number 4604, from the Legation.
In this connection we refer to the first paragraph of your
message of July 28. Number 2695.
HARRISON
DCR:LCW 8/5/44
Regraded Unclassified
259
FRH-400
Bern
This telegram must be
paraphrased before being
Dated August 3, 1944
communicated to anyone
other than a Government
Rec'd 11:22 p.m.
Agency. (RESTRICTED)
Secretary of State,
Washington.
4983, August 3, 8 p.m.
Two. Division of Foreign Interests of Federal
Political Department informs me by note dated August
2 of receipt of telegram from Swiss Legation Budapest
stating that according to communication from German
Legation Hungary German Government desires that part
of Jewish emigrants from Hungary be accepted by the
United States. Note states that these emigrants
could be evacuated Lisbon via France and that Swiss
Legation Budapest desires to be informed how many
of these imigrants may be accorded permits enter the
United States.
Three. Hungarian answer to our note June 13th
received today.
HARRISON
RR
Regraded Unclassified
260
CABLE TO ANKARA
From War Refugee Board to Steinhardt
Please deliver the following message to Leon P. Denenberg,
American Consulate, Istanbul, from the International Rescue and Relief
Committee:
"RECEIVED YOUR JUNE 27 LETTER AND NANA VABLE WHICH
THEY DID NOT USE BUT WE DID STOP SENT YOU TWO LETTERS
THROUGH STATE DEPARTMENT AND 4 CABLES ADDRESSED ANKARA OR
ISTANBUL SENT YOU 5000 JULY 24 MORE FOLLOWS INVESTIGATE NON
RECEIPT ABOVE NAMED COMMUNICATIONS DID YOU RECEIVE YOUR FAMILY'S
LETTERS"
THIS IS WRB CABLE TO ANKARA NO. 93
5:25 p.m.
August 3, 1944
FH:lab 8/3/44
Regraded Unclassifie
261
CABLE FROM WAR REFUGEE BOARD TO KELLEY AND HIRSCHMANN, ANKARA
The result of Hirschmann's negotiations with the Bulgarian
Minister and of Kelley's approach to the Turkish Secretary General of
the Ministry of Foreign Affairs (your 1370 and 1371 of July 26 and
your 1381 of July 27) is highly gratifying to the Board. Please accept
our congratulations.
The Board would like to be advised whether in view of your
1287 of July 15 efforts are also being made to induce the Turkish Govern-
ment to issue transit visas for the 400 to 500 refugees the Bulgarian
Government is now apparently willing to permit to leave Bulgaria weekly
by rail.
THIS IS WRB CABLE TO ANKARA NO. 92
.
11:15 a.m.
August 3, 1944
MSargoy/MJMarks: dh 8/2/44
Regraded Unclassified
262
CABLE TO AMERICAN EMBASSY, MOSCOW, U.S.S.R.
The War Refugee Board requests that you deliver the following message
to Samuel Chobrutsky, Spasoglinistchevsky, 8, Moscows
QUOTE In conjunction with joyous news of freeing White
Russian and Lithuanian territories we together with American
Jewry deeply concerned in welfare and whereabouts Jews in
freed territories. We would be thankful to receive the necessary
detailed reports from you concerning these Jews and also informa-
tion about Rabbis and Yeshiva scholars. If possible werwould
request you to visit these territories to discover for us the
names of those remaining alive and their addresses. We are ready
to advance all costs. Please give us all information about these
Jews you now have.
VAAD HAHATZALA EMERGENCY COMMITTEE UNQUOTE
5:20 p.m.
August 3, 1944
BAksin:ar 7/31/44
Regraded Unclassified
COPY NO
263
NOT TO BE RE-TRANSMITTED
SECRET
OPTEL No. 252
Information received up to 10 A.M. 3rd August 1944.
1. NAVAL
Preliminary reconnaissance GRANVILLE discloses extensive
mining, sunken craft and concrete barriers in Appro₂ches to port
and jetties, buildings and crane badly damaged. A British Destroyer
sunk this morning off NORMANDY. A U.S. Destroyer torpedoed yester-
day afternoon West of AZORES.
2. MILITARY
Normandy Reports from U.S. Sector, at present unconfirmed
owing to failure communications, state U.S.
motorised columns have entered BRITTANY PENINSULA west and south
of AVRANCHES. PONTORSON and DOL reported captured and advanced
elements in ST. MALO and DINAN, RENNES reported in our hands.
East of AVRANCHES and advance of 4 to 5 miles made on 10 mile
front: VILLEDIEU LES POELES, PERCY and TESSY captured and substan-
tial gains reported from these areas. Continued good progress
British sector in difficult country and against strong opposition.
VIRE and a village 8 miles N.E. captured and further north forward
elements are 3 miles West of AUNAY SUR ODON. Attack by Canadians
Armoured Division towards TELLY LA CAMPAGNE met very strong
opposition and made no progress. 12th U.S. Army Group has been
formed comprising third and first U.S. Armies. First Canadian
Army has taken over command of II Canadian and 1 U.K. Corps on
left of British Front.
Italy East of AREZZO our troops have captured SAN SEPULCRO
and have made small advances north of FIGLINE and sout
south of IMPRUNETA. During lst/2nd Now Zealand Troops attacked
high ground south of FLORENCE and made some progress on their left
but were held up on their right. Indians have established a bridge-
head over the PESA east of EMPOLI.
Russia Russians have made further progress West of REZECKNE,
North of KOVNO, along theSIAULIAI Railway: NW and S
of MARIAMPOLE and W of JAROSLAV.
3. AIR OPERATIONS
Western Front 2nd. Allied bombers attacked 10 railway
bridges Gentral FRANCE 586 tons, five fuel
dumps 291, a flying bomb supply depot near PARIS 96, 17 Flying
Bomb launching sites 576, and two ammunition dumps 121. In
addition 455 Bomber Command aircraft were sent against 3 Flying
bomb supply depots, 7 Flying Pomb launching sites and the port
area of LE HAVRE: preliminary reports indicate that all targets
were attacked. Allied losses (provisional) 7 heavy bombers, 9
fighters.
Italy 1st. 595 medium and fighter bombers attacked bridges
and communications in Northern ITALY: 12 grounde
aircraft, 46 railway wagons, 13 locomotives and 11 motor vehicles
either destroyed or damaged. On 2nd Liberators ( 1 missing)
dropped 278 tons on GENOA Harbour installations.
Southern France 2nd. U.S. heavy bombers (4 missing) from
MEDITERRANEAN attacked a torpedo factory
72 tons and the railway centre 81, VALENCE: an oil depot LE POUZIN
53 tons, South of VALENCE; two railway bridges at AVIGNON 106 and
oil storage Depot near AVIGNON 47.
Burma 1st. 168 fighters attacked objectives in MANIPUR
and CHINDWIN areas.
German Activity During 24 hours ending 6 A.M. 3rd,
219 flying bombs plotted.
Regraded Unclassified