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Volume 763, August 16 – August 18, 1944
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Volume 763, August 16 – August 18, 1944
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Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
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DIARY
Book 763
August 16-18, 1944
Regraded Unclassified
- A -
Book Page
Africa, North
See France: Lend-Lease Agreement (future)
Argentina
See Latin America
- C -
China
Nelson and Hurley ask to discuss contemplated trip
with HMJr - 8/18/44
763
217
Coast Guard
For future use of plane see Morgenthau, Henry, Jr.
- D - -
DuBois, Josiah E., Jr.
Letter of apology to HMJr - 8/16/44
1
Dumbarton Oaks Conference
Treasury representative discussed by Hull and HMJr -
8/18/44
206
a) HMJr's note to Hull - 8/22/44:
See Book 764, page 231
1) Grace Tully tells HMJr FDR has rejected
Treasury request - 8/23/44: Book 765, page 14
- E -
Eighth Air Force
See Financing, Government: War Savings Bonds
European Advisory Committee
See Post-War Planning: Germany
- F -
Financing, Government
Haas memorandum on "Refinancing of the Two Treasury Notes
Maturing September 15" - 8/17/44
153
War Savings Bonds
Eighth Air Force in Europe has superb organization
for purchases under Doolittle - 8/17/44
114
a) Odegard (Peter H.) letter from London, and
HMJr's reply - 9/9/44: See Book 771. page 69
France
Franc Notes: Valensi-Treasury correspondence concerning
printing of - 8/16/44
30
Lend-Lease Agreement (future) : McCloy and HMJr discuss
arrearage on payment for civilian supplies in
North Africa - 8/18/44
214
Regraded Unclassified
- G -
Book Page
Germany
Post-War Treatment
See Morgenthau, Henry. Jr.: Trip to European War Zones
# Post-War Planning
Glasser, Harold
See United Nations Relief and Rehabilitation Administration
Gold
See Latin America: Argentina
- H - -
Hull, Cordell
See also Post-War Planning: Germany (HMJr's trip to
European War Zones)
Hull-Welles controversy on Argentina discussed by Hull
and HMJr - 8/18/44
763
204
Hungary
See War Refugee Board
- J -
Jabotinsky. Eri
See War Refugee Board
- K -
Kohn, Hans (Professor, Smith College)
See War Refugee Board
- L -
LaGuardia, Fiorello (Mayor of New York City)
Sunday broadcast on post-war problems sent to HMJr - -
8/16/44
2
Latin America
Argentina
Freezing of gold - State Department attitude toward
discussed by 9:30 group - 8/17/44
92
a) Schmidt-Luxford memorandum on recent
developments 8/17/44
161
Hull-Welles difference of opinion on treatment
discussed by HMJr and Hull - - 8/18/44
204
Lend-Lease
United Kingdom: Federal Reserve Bank of New York
statement showing dollar disbursements, week ending
August 9, 1944 8/18/44
248
Luxembourg
Radio address on treatment of small nations at
international conferences sent to HMJr - 8/16/44
20
Regraded Unclassified
- M -
Book Page
Mann, James H.
See War Refugee Board
Morgenthau, Henry, Jr.
Trip to European War Zones (England and France):
See Post-War Planning - - Germany
Coast Guard plane - future use of: Gaston memorandum -
8/18/44
763
230
- N - -
Nelson, Donald M.
See China
North Africa
See France: Lend-Lease Agreement (future)
- 0 -
Office of War Information
See Post-War Planning: Bretton Woods Monetary Conference
- P -
Palestine
Quota discussed by Churchill and HMJr during HMJr's
trip to European war zones - 8/17/44
106
a) For Hungarian Government offer
see War Refugee Board
Post-War Planning
Bretton Woods Monetary Conference
Luxford report on Sulsberger luncheon and programs for
American Forum of the Air, United Nations
Association, etc. - 8/17/44
116
Newspaper editorial opinion - 8/17/44
138
a) Luxford comment on Office of War Information
report: "The Public Ignores Bretton Woods" -
8/18/44
219
Germany: HMJr's trip to European war zones discussed
with Treasury group - 8/17/44
93
a) German post-war treatment reviewed with
Eisenhower
b) Palestine quota question - discussion with
Churchill and Eden described
1) For Hungarian Government offer
see War Refugee Board
c) Eisenhower and Churchill advocate
"stern treatment"
202
Winant program based on Acheson Committee
(Pasvolsky chairman) report (See Book 759, page 245)
will result in third war at end of 10 years
202-203
Teheran conference decision was dismemberment of
Germany in 3 to 15 parts with European Advisory
Committee set up for future study
1) Hull, who had never seen minutes of
conference, amazed
2) Hull describes his attitude toward Germany
and Japan
204
Regraded Unclassified
- U -
Book
Page
United Nations Relief and Rehabilitation Administration
Glasser, Harold: To represent UNRRA at conference in
Montreal - 8/17/44
763
113,167
White to serve as member and chairman of committee
determining position with regard to foreign exchange
of foreign governments asking assistance - 8/17/44
169
- W -
War Refugee Board
Palestine quota discussed by Churchill and HMJr during
HMJr's trip to European war zones - 8/17/44
106
a) Hungarian Government offer regarding emigration
and treatment of Jews: State Department release
and press comment thereon - 8/17/44
176
1) Joint statement of British and
U.S. Governments transmitted to certain
American diplomatic officers - 8/18/44
252
b) Union of Orthodox Rabbis of United States and
Vaad Hahatzala Emergency Committee-Treasury
correspondence - 8/25/44: See Book 766, page 134
Jabotinsky, Eri: Kohn. Hans (Professor, Smith College)-
Treasury correspondence concerning - 8/17/44
174
a) Kohn note of thanks - 8/21/44: Book 764, page 121
Mann, James H.: Made Special Representative of Board
with designation "Special Attache to the Embassy"
(Madrid) on war refugee matters - 8/18/44
271
Welles, Sumner
Hull-Welles controversy on Argentina discussed by
Hull and HMJr - 8/18/44
204
White, Harry D.
See United Nations Relief and Rehabilitation Administration
Regraded Unclassified
1
London
august 16
Dear mr. Secretary,
However badly May ast at times, l
I'm sorry about this morning
you in high places in this world, has
feel that if there were this more men one like
I want you to know how deeply
meaning and that those dear to me have
could feel surer that war a
not sconfired in rain.
Sincerely,
Joe (DuBois)
2
25
August 26, 1946.
Dear Mayer La Cuardias
This will achmovledge year letter of
August 14, which transmitted to the Secretary
of the Treasury a any of a breadcast which
you made from city Hall last tuning.
Mr. Norgenthau to out of the country as
the present time, tot you my be sure 1 shall
be glad to being your letter and its enclosure
to Me attention as seen as he returns to Me
desk, and I Incov he will be most interested is
going ever the full text of year address.
I
(Signed) H. S. Klotz
1. 8. Klets,
Private Secretary.
Remorable 1. a. in Guardia,
Mayer of the City of New York,
Bew York, New York,
GEF/dbs
Regraded Unclassified
3
CITY OF NEW YORK
OFFICE OF THE MAYOR
NEW YORK 7, N.Y.
August 14, 1944 Bh
Hon. "enry Morgenthau
Secretary of the Treasury
Washington, D. C.
My dear Mr. Morgenthau:
I am enclosing herewith copy of my Sunday broadcast
of August 13th. Inasmuch as I have touched on a matter in
which you are so closely and vitally interested I thought you
might like to read it.
If you have any comment or criticism I would
appreciate receiving it.
Sincerely yours,
encl.
Mayor
Regraded Unclassified
3- n
FOR IMMEDIATE RELEASE
SUNDAY, AUGUST 15, 1944
CITY OF NEW YORK
OFFICE OF THE MAYOR
TEXT OF MAYOR F. H. LA GUARDIA'S SUNDAY BROADCAST TO THE PEOPLE OF
NEW YORK FROM HIS OFFICE AT CITY HALL, AUGUST 13, 1944, BROADCAST OVER WNYC
AT 1:00 P. M. FOLLOWS:
Pationce and Fortitudo.
POST WAR I want to talk today about our postwar problems. As of today, we
PROBLEMS are not prepared for peace. It took a long time to prepare for war.
It will take a long timo to prepare for peace. To date, precious timo has boon
wasted. There should not be another minuto lost. Congress will have to speed
up. We all want the war to end at the carliost possible moment. We are all
hopeful that it will ond in Europe before long. Yet we are not ready to meet
the situation at home when it does. Nothing short of a miraclo will save us from
a great deal of trouble and anxioty. It is just taking too long to get the
postwar program sottled and tho necessary legislation enacted in order to pre-
paro and be roady. Failure to be ready will be extromoly costly, porhaps ton
timos more than a constructive program, besidos the trouble, the hardship,
the sufforing and the anguish that will be causod. Relief is always costly
and does not settle anything.
Those of us who wore close to the unemployment situation know what
relief costs, and we know that it is not a final solution. We must provide
work and opportunity and security. Roliof, idlenoss and sympathy will not do.
Lot us look at the situation. Over ton million mon and womon are
now in the armed forces; about thirty million mon and womon aro now employed in
war industries, including transportation, agriculture and mining; soventy-five
to eighty percent of our factorios, shops, plants and yards are now ongaged
solely in war production. The problem thon is to got the domobilizod votorans
into jobs, to koop war industry workors in employment and to transform war
plants back to poaco-time production. In addition we must koop agriculture
going to its maximum production. Wo know that all ton million mon in the armed
forces will not be discharged at one time. The first impact, though, will be
felt for several months after domobilization starts. No must be proparod to give
I
Inclassified
- 2 -
4
these mon jobs, to koop them in jobs and to absorb votorans in gainful employment
after they are discharged.
Many mistokes have boon mado horo at home. Mistakes are bound to
happen in a great emergency and in such a gigantic task. Many of the mistakes
word pardonable because of inexperienco. Somo of the mistakes were un-
pardonable because of past experience.
To moot this gigantic problem, everyone must do his share. The
responsibility may be divided into four parts:
1. The Government.
2. Industry and Commerce.
3. Agriculture.
4. Wage Earners.
What should each do:
THE
1. The Government: The House of Representatives should procood with-
COVERNMENT
out delay to anact into legislation the romaining part of the
Baruch rocommendations not yet written into low or contained in the Goorgo Bill.
Congress should perfect the contract termination law and proceed at onco to
provide for aid and assistance in converting industry back to poacetimo
production.
It should, insofer as is possible and practical, define its taxing
policy for 1945-1940. This, of course, is always subject to the act of a sub-
sequent Congress. However, a doclaration of a tax policy, while not binding
on a subsequent Congross, would be reassuring to industry and commerco and at
the same timo rould have grout force and would be considered with great
rospoct by the ner Congress.
Congress should approve a fodoral, state, municipal public works
program, with immediate appropriations made available to Foderal, State and
local governments for the preparation of ongineering and architectural plans
und specifications, and definite commitments ns to the amounts of grants to
state and local sub-divisions of government. Congress should puss the foderal
highway bill with authorization for increased appropriation. It dous not
provido anough as it now strnds.
A careful study of the Servicemen's Readjustment Act of 1944 should
be made to obtain timoly, perfecting and clarifying amondments if they should
be decmed necessary. Nothing should bo left in doubt. The ruhabilitation and
educational featuros of this law are excollent. Hero the mistokes and
experience of the last world war have boon helpful.
- moro -
Regraded I Inclassified
5
- 3 -
The roomployment provisions, of course, are necessary, but providing
employment agency does not creato jobs by and of itself. In this instance, CB
in every other, it will be seen that a comprehensive plan is absolutely necessary.
The Voterans Roemployment Agency will be of great value if industry and commerce
are able to give jobs. It will be useless if there are no jobs.
Provision should be made in the guaranty of voterans loans to pormit
the pooling of individual loans among votorans who desire to join in an
approved business venturo.
The government should now provide a guaranty of loan to industry and
business for the purpose of deforred maintenance, expansion, replacement of equip-
ment and machinery of any company or individual who has been or was solvently
engaged in industry or business prior to or during the war.
Provisions for displaced war workers must also be made. Wo must be
realistic. Wo cannot talk about the consumption of consumers goods and pur-
chasing power and remain silent as to what is to happen to millions of war
rorkers who will necessarily lost their jobs. The provisions in the Kilgoro
Bill were not all excessive or exaggerated. A large number of workers un-
employed, with barely a subsistence allowance, will only prolong the period of
resumption of peacetime production.
As the Goorge Bill goos from the Sonate to the House, careful
consideration should be given by the members to many excellent provisions in
the Kilgore Bill. Out of it all should como a woll balanced, casily administored,
effective plan for part of our post war problems. Both bills provide too much
machinery for administration. Any attempt to mix, to mingle, or to merge any
administrative duty, direct or indirect, with the logislativo branch of the
government would only create a governmental melange, not in keeping with our
philosophy of government, and will causo trouble. It has nevor and vill
never work.
- more -
Regraded Unclassified
6
- 4 -
when congrossional committees want information they have the power to get it.
For a congressional committoo to sit with an advisory committee in the adminis-
tration of any law is not only impracticable but dangerous. The administration
of all provisions of law, I repoat again, should be stroomlined and docision and
rosponsibility definitely fixed in as fow individuals as is possible. Both bills
contain the woakness of divided cuthority, too many committoos, very unwioldy
and cumbersomo administrativo machinery.
A great deal of our trouble has boun caused by dispurity of labor
conditions in various states. This condition in not sought to be perpetuated in
the Goorge Bill. Every post war problem is a national problem. The displacement
of war workers and the rehabilitation of industry is not a State problem but a
national problem. Unemployment allowance should be uniform. True, there might
bo a slight difforential in the cost of living in the various sections of the
country. In the main though it nocessarily must be uniform in amount, in ad-
ministration and in terms and conditions. To separate this into 48 administru-
tions is not only costly but unscientific. It may create patronage and pup but
it will not be as efficient as a national system. Imagino tun million workero
shopping around for the states having the highest unemployment insurance.
imagino an administration allowing travel expense without C complete coordinated
national plan of knowing just how, where and why money is spent for travel
and expenso of families of war workers. Some may have a right to return homo,
others may want to go whore work is available but all of this has to be co-
ordinated and brought under the supervision and control of one administration.
Provision for 48 state administrations of unemployment insurance may be good
politics. It is bad, very bud socially and economically.
The dolay in obtaining necessary post war logislation, the duplication
and logislative confusion created by two bills on the same subject in the Senate,
cach reported out by Committee, the need of one comprehensive plan, all indicato
the necessity of an over-all study and consideration of these problems by
Congross. To those not familiar with parliamentary procedure, the difficulty
may not be apparent.
- more -
Regraded Unclassified
7
- 5 -
Under the present rules, with different committees considering the various parts
of the entiro program, dolay, duplication, omission are all bound to happen. The
liouse of Representatives has soun this in the appointment of a Special Post Far
Study Committee. The rockness of this Committee, though, is that it has not been
given the necessary power to report definite legislation. It can only moko
recommendations. That moons delay, more hearings, more study, more investigations,
more reports. It would be very helpful if each House of Congress appointed its
own special legislative committee on post for problems. This committoo should
consist of the Chairmun, ranking Majority and Minority members of the Ways and
Monns, Appropriations, Interstate end Foreign Commerce, Agriculture, Labor end,
if nocessary, Army and Navy Committoes, with full power to propare and report
logislation to their respectivo bodios. This will bring under one consideration,
at one timo, the entiro picture and will enable proper approach and treatment of
the various problems, the necessary tying in of all post war activities, co-
crdination and cooporation, cnd eliminato a great doal of burecucracy and
orsonnel.
The government in Washington must bo stroomlined. The grenter number of
T agencies should be terminated. All duplication end overlapping must be
uliminated. Each dopartment of government should absorb the functions of the
various agencios which portain to its particular field. This subject alone could
be discussed at length. I may do so at another time.
It in absolutely necessary that insofar as is prudently possible,
without impairing the post war program, which will be very costly, the government
should ostimate ito post war exponses for a poriod of five years. In order to
avoid any misunderstanding, disappointment or irritation, a definito policy on
lund-loase must be proclaimed now before it is too lato. We may have to give
ome cid to the unhappy invaded countries. It should be restricted to
such countries. Lend-lease, though rostricted, after the tormination of
hostilities, must be limited to goods and commodities. All of the countries vill
hood building matorials, machinory, clothes, food and modical supplies. This all
can be supplied under the provisions of lend-lease with casy torms of payment or
exchange later in commoditios. There should be no cash loans excopt for a
critical or emergoncy situation. I as talking about government money. Re-
established governments or now governments, of course, would be pormittod to
cloat bond issues on such turms es they are able to negotiate.
- more - -
8
- 6 -
A system of universal military training will have to be established for
:11 boys betwoon the agos of oighteen and twenty-one, giving choice to the in-
dividual as to when he will serve within that age period, or compulsory at
twonty-one. Suitable arrangements, of course, can and must be made for college
students without interruption of their college or post-graduate courses. This is
very easy to accomplish. Alongside of this, states must strengthon their com-
pulsory oducational laws in order to take from the competitive labor market
children of tender years and immaturo youth.
On the other end of the pool, a more uniform system of old-ago pensions
should be established throughout the country. No old ago pensions should be
allowed whore the beneficiary continues employment in any competitivo field. Un-
employment insurance should be moro uniform throughout the country. This, of
course, is only palliativo and not a curo. Let us give moro thought as to how to
koep people at work rather than how to koop them out of work. Labor wants work
with decent pay not idlonoss with reliof. We must establish security of employ-
ment to such an extent that the cost of unemployment insurance would be greatly
reduced and the benefits to seasonal workers greatly increased.
We have learned that a groat doal of dostitution, which is very costly
to local and stato governments, comos from the disability of the head of the
family to work owing to illness. At this date little noed be said as to the nood
of a hoalth insurance system throughout the country. It is past the study stago.
Sufficient information, knowledge and oven experience have boen obtained to put
such a plan into oporation.
We have hoard too much of surpluses. Paradoxically, it has caused
hunger in our country. It is almost unbelievable that when we had the greatest
unemployment, we had the greatest food surplus. The same is truo as between
intions. Somo countries had surplusos and did not know what to do with thom,
other countries were in want. That is one of the main causes of war. It must
be removed. Just talking about it will not solve the problem. We must act and
we must be propared to go into operation to care for surplus the momont the war
onds. Oh, for the first few months thore will be such need of food and material
in Europe, Africa, and Asia that the laissoz-faire, the happy-go-lucky, the
unthinking, the day-by-day business mon, the pawn-banker, will say "Oh,
everything is fine now, why worry?"
- moro -
Regraded Unclassified
9
- 7 -
I tell you that there is cause to worry. No poople within B. country from
now on will go hungry and no country in the world will go hungry. Our
Government should provide at once a surplus commodity export corporation
oporating on a hemispheric basis in concert with like organisations of
Central and South America. A like government corporation should be
established for the European-Afrisan territory, and the third for the Pacific-
Asiatic area. Heretofore we have talked about surpluses but we do not really
know if we evor had a mal surplus of anything. A surplus is that amount
of any given commodity over and above the needs of all the people. What
we have called surplus was the amount over and above the purchasing power
of the people. Do I make myself clear? As an illustration: -- To had great
trouble in the past with surpluses of dairy products, milk, butter and
cheese. I say we have never had a roal surplus of dairy products in this
country. If every infant and child in the United States had sufficient
and the proper quantity of milk every day, if every family had sufficient
and the propor quantity of butter every day, ignoring cheese entirely, we
would not have had & surplus of dairy products. Therefore, to balance the
world's surpluses, it is necessary that a definite formula be established.
Roughly stated it means that the daily noeds of the people of
the entire country should be takon 68 the normal required amount of any
commodity. The amount over that requirement is then declared a surplus. That
surplus then is taken with the surplus of the same commodity of other
countries in the homisphere, and placed in the pool. It is disposed of by
sale or exchange to countries needing that particular commodity. The European
or Asiatio countries do the same, and provide for salo or exchanges between
the three world surplus commodity corporations. When the commodity arrives
in the country requiring it, it is thon distributed through the regular
channels of trado in accordance with the economy of that particular country.
It is not difficult. We have the food; we have the rew materials; 1 we have
the demand; and soon it will be learned that a perfect balance can be maintained.
Of course, this would eliminate spoculation. This would eliminato monopoly.
This would prevent excess profits and excess suffering. By the establishment
of the homispheric surplus pool, a market is assured to the farmors of each
(more)
Regraded Unclassified
10
- 8 -
nation for all that they produce. No more economy of want, no more
curtailing production, but encouraging production. There is no originality
inthis idoa. It has boon talked about and studied for years. Selfish
interests have always boon able to oppose it in this and other countries.
Now lot us consider another kind of surplus, temporary but quite
important - that is surplus war supplies. Lot us get right to the point.
Congress is giving a great deal of attention to legislation regulating
sale of surplus war supplies. The amount of surplus supplies will not only
be gigantic, but fantastic. How right hero, let us remember that the Army
and the Havy should be praised and not oriticized for having such enormous
amounts of every kind of supplies on hand. It is their job to fight and
win the war. They dare not take any risk as to when and how the war will end.
It is their responsibility to have ammunition and weapons and food and
materials and supplies of overy kind everywhere when and where it may be
noeded - in sufficient quantities. Therefore, the American people should know
that the onormous supplies which we will find after the war is the result
of & fine and thorough job on the part of the Army and the Navy.
More thought and study has been givon to the disposal of war
surplus supplies now than had beon given before the end of tho last war, A
super agency of government has been ostablished with a splendid personnel,
which is intended to cover all the procurement agencies of the government
that will have surplus supplios on hand, Every detail has beon worked out
as to cataloging, pricing, advertising, financing, and as I stated, Congress
is now considering definite logislation.
I make this prediction -- that if the selling agency is perfect,
that if the laws enacted by Congross provide for the efficient and speedy
disposition by sale of all war surplus material, that within ninety days
after the same will go into operation, the Congress will hastily repeal its
own logislation and stop the salo of 99 porcent of the surplus supplies. Sounds
strange, doesn't 16? Woll, it is a fact, Just look. Are wo not bending every
offort to get industry baok to peacetime production? Do we not want to employ
every man that it is absolutely possible! Well then, if T/O want to do that,
do you not 800 how the sale of the surplus supplies through the regular
channels of trade will retard poacetime production?
(moro)
Regraded Inclassified
11
- 9 -
Yes, there are same articles on the list which will be helpful in restoring
peacetime production; tools and dies, and machinery, may be needed at onoo,
but no machine should be sold unless it is nooded to restore peacetime
production and not if another machine could be mado in the time that is
required. Somo raw material, such as copper and lumbor, and other matorials,
should be sold, but nnly so much 0.8 will got peacetime production going up
to the time that same matorial can bo produced. If all the resorvo aluminum
on hand were sold as surplus supplies now, 1t would close down the production
of aluminum for a long time. That in turn will cause the unemployment of
thousands of workers. Take for instance, planes and motors for airplanes.
Why thoro will be an enormous quantity on hand. If all of the surplus were to
be sold here and abroad, I predict that there would not bo an airplane motor
constructed in our country in five years. That would cause unomployment to
*
hundrods of thousands of workers. Airplanes that may be used for commorcial
purposes, should be loaned to commercial airlines as replacements for present
worn equipment on condition that an order for a not plane with now motors is
placed for each plano and motor loaned which will be returned on dolivery of
the new plane and now motor. The same in true in trucks and cars, in paint,
and bolts and nuts, and in the thousands and tons of thousands of different
articles and goods that the government will have on hand,
The Government, of course, should use materials and goods for its own
establishments. It should givo to state and municipal government replacements
of matorials und supplies that it my need, but only on condition that the
stato or mmicipality authorize the appropriation for the succeeding year of its
normal requirements for such matorial and supplies. There is a great need now
of blankets and shoets and medical supplios in our hospitals. But how about
the mills, how about raw wool and cotton? If all the shoes and clothes
that the Government will have on hand are to be sold through regular channols
of trade, it sure will rotard resumption of loather and textile production
in this and other countries.
Someone will ask, "Tell, isn't it wasteful not to soll all of those
-
surplus supplies?"
(moro)
- 10 -
12
The answer is "Yes," of course it is wasteful. "ar is wasteful and
destructive and this enormous amount of surplus supply is just part of the
waste and destruction of war. So lot us not fool ourselves. I have told
committees of Congress just what I nm telling you now. To must be
roalistic and practical. It is less costly to pay wages to produce now
goods than pay insurance for unomployment.
INDUSTRY AND 2. INDUSTRY AND COMMERCE: Everybody is talking about free
COMMERCE
enterprise today. When I say everybody, it seems from the
member of a Local of organized labor, to the President of the United States.
It seems to be the will of the majority of the American people. That being
so, thon we must face this big problem honestly, frankly and realistically.
Free enterprise means business for profit. If that is the will of the
people, then business and industry must be given a chance to operate. Given
good wagos and wholesome working conditions, an opportunity of profit
commonsurate with the capital and risk involved must be made possible.
Talking about profits, taxes tantamount to almost complete requisition and
free enterprise at one and the same time, simply doos not mix. Hog-tying
logislation likewise interferes with free enterprise and the profit system
and the oreation of permanent employment under this system. Now mark you,
I am not giving my views. I em stating what must be realistically faood if
those who talk about free entorprise want to bring it about successfully. In
the modern, scientific, industrial age in which we are living, we must not be
frightened at big undertakings. Many of the consumers' goods and desirable
goods cannot be produced today unless they are produced in maximum quantities
and the manufacturer is permitted to avail himsolf of every possible economy
in the purchase and processing of raw materials, the manufacture and
distribution of the ultimate goods.
Industry and business, as I said before, has a responsibility.
Granted that it should know exactly how it stands in legislation and
insofar as is possible taxation, it must reconoile itsolf to fair and reasonable
profits, to now conditions pertaining to labor, to close ocoporation with its
1
(more)
Regraded Unclassified
13
- 11 -
employees and the recognition that the employees o ome to have a vested interest
in something that they have contributed in building and creating. The time may
not be distant that a certain percentage of profits beyond a fair and
reasonable return may be shared by management and labor. Security of employ-
ment is necessary and in the long run coonomical to the employer himself.
Therefore, production should be systemtizod in such way as to avoid seasonal
work. Thore is no reyson why the automobilo or the petticoat manufacturer
should produce only in a certain season of the year. Given its model or
style, production may woll be spread during the twelve months of the year.
Business and industry should now bo ready with its post war plans for
deforred maintenanco, expansion, replacements and onlargement or new enter-
prise. There is plenty of money available and as I stated, the government may
provide somo sort of partial loan guaranty. There is nothing more discouraging,
and I am sorry to say I have hoard many important, yes, oven big bankers and
business men, toll me, "Oh, wait, lot's win the war first." This typo of mind
will not fit in the post war period. This is the pawnbrokers' and pusheart
peddlers' montality. All the shenanigans and questionable promotional schemes
which flourished in the early days of railroads and right down into the late
twenties, must be forgotton. If business or industry sells bonds, the inves-
tors must know that they aro absolutely good with sufficient property back of
them. In exchange, the investor takes a lower rate of interest. Watered
stock and over-capitmlisation must likewise be avoided, the stookholder must be
assured that he is in a business and not a lottery. Moro labor and owner
ropresentation will have to be given on the directory boards. Existing
restraint of trado and anti-trust laws must bo brought up to date to meet the
toohnology of mass production, changed labor conditions and magnitudo of modern
industry. The Department of Commerce must be vested with the authority and
power to protect honest business and industry. An opportunity should be given
to business and industry to apply for approval of contracts, agreements or any
undertaking before same is put into operation, in order to ascertain if it
conflicts with any existing restraining or trust law. When industry and
business want to do the right thing, they should not be placed in jeopardy
or tempted to violate the law when it is not their intention to do 50,
( more )
Regraded Unclassified
- 12 -
14
I want to state again now, that I am simply stating what should be done if a
system of free enterprise 1e to be the policy of our nation.
AGRICUIT URE 3. Agriculture: With the exception of perhaps the last few years
in this country, agriculture has never had a chance in this or any other coun-
try of the world. For centuries, countries of the older world thrived on the
exploitation of the peasants. In this country, industry profited, in the past,
by the misory of the farmers. That day should be gone and gone forever.
Unless we are very careful, we may again depross agriculture to the depths
of bankruptcy and poverty as was done after the last world war in this
country. I wonder how many realize that the job of a shirt-maker in a shop
in Nov York, or a mechanic in a plant in Detroit may depend upon the wheat
crop in the Argentine or in Australia, to say nothing of the economic
condition of the farmers of this country.
Our agriculturo oconomy must bo based on a policy of plenty.
Everything that the soil can produce must be encouraged. Parity, not parity-
plus, but real parity prices must be assured to the farmor, and what is more,
that ho will find a market for his crops. This is only possible with the
world surplus pool I talked about a moment ago, The American farmor is ontitled
to fair and just compensation for his labor, the labor of his family, and for
fair, just and reasonable returns for his investment. That is all he wants,
that is all he has over asked. If he gets that, he is presporous. If the
Amorican farmer is prosperous, he buys clothes and furniture and household
goods, machinery and all sorts of things that we make in the city. That means
employment in the cities - wages - and in turn a good market for his products.
Now when you put this circle in reverse, it is just too bad, The farmer is
broke and ho cannot buy, and because he cannot buy, the fellow in the city
doos not have & job and ho cannot buy sufficient food. It is just as oasy to
keep the gear forward as to lot it slip into revorso.
If the nations of the world aro really desirous of maintaining
poase, nothing is more important than that all of the people of the world
should have enough to eat. God Almighty has placed sufficient food on earoh
for all the people. It has not all boon equally distributed; but the
balance is there. While one
(more)
15
-13-
country may produco ono crop in surplus quantitios, it doos not have another
commodity it nooda and which another country produces. To think of pooplo
starving with a surplus of food of any kind is not only stupid,but sinful.
LABOR
4, LABOR: Wo now como to the wago carnors. Labor has an
opportunity to mako a groat contribution to our post-war adjustment. It has
the groatost opportunity in the ontiro history of industry. Labor has gainod
a position, its rights have boon recognized. This brings with it rusponsibility.
Granted a policy of 4 decont living wago, socurity and provision against
unomployment, it necessarily follows that labor must produce sufficient to
creato such wagos and working conditions. "Tagos must nocossarily bo
maintained by production. Slow-down, limitod production, idlo standbys, aro
costly to labor and to industry.
Sponking vory frankly, in tho poriod of adjustment
following tho war, with the huge numbor of dischargod var workors and
domobilizod soldiors, full and comploto cooporation will be necessary.
Unloss amplo, oquitable distribution of work is provided betwoon the
discharged war workors and the domobilized votorans, thoro is groat dangor
of irritation, friction and sorious troublo butwoon thoso two groups.
Thore aro somo thirty million mon and womon, as I anid boforo, now employed
in war industrios. Lot us assumo that there will bo about ton million who
will not be required in war industry and ton million who oventually will bo
domobilized from tho armod forcos. Horo wo have a pool of twonty million mon
and womon for whom work must be provided. As I see it, in all governmental
post-war public improvoment, the omployment should bo distributed on a
fifty-fifty basis botwoon domobilized votorans and unomployed war workors.
The samo ratio of ono-half votorans and ono-hnlf war workors should bo followod
ns closoly as conditions will pormit in all postwar now industry, and in
continuing industry and business insofar n.a. is possiblo. Womon who have
homos and are not solf-supporting, as woll as ovortimo and dual employment
will all have to givo way in ordor to provido a groator sprond of omployment.
Organized labor should be tho ono to prosent this plan and to 500 it onforcod.
That in and of itsolf is sufficient to avoid the dangor of friction botwoon
votorans and organized lubor.
- moro-
16
-14-
In ordor to mintain the purchasing power nocossary to provide
permanent employmont, it is essential that production incroaso. I report,
the wholo situation dopends upon the wago carner producing. Evorything should
be based on that. The groator the production, the groator the stability of
employment. The groator the production, tho bottor tho wagos.
I have folt for a long timo that a fixed, fair and just annual pay
with stoady work is buttor than a fictitious hourly rato with little or no
work. I have always folt that full-timo jobs for all is bottor than jobs for
some with ovortimo. I am quito aware that tho old-lino labor loador disagroos
with that. However, this is something that all trados should consider An
ennual pay with stuady work will bring moro return to the individual and his
Family than an hourly rate, uncertain, indofinito and sonsonal. I have hoard
from both employers and union loadors that it is impossible to fix an annual
pay for scasonal work. That is not 50, It is quito possible to provide greater
incomo to tho workor on an annual basis and yot roduce tho cost of production to
the omployor. This is something which should recoivo the prompt attontion of
labor.
Laber should sou to it that the standards of wagos aro moro
\miform throughout the country. The Mago and Hour Law has holped considorably.
That is not anough. Working conditions, rulvs imposed by labor, if good in
ono soction of the country should bo good in all soctions of the country. Ofton
it is not wages, but working conditions that drivo an industry out of ono
soction into another soction of the country. That is not good for industry and
in the long run it is not good for labor. Fair employors who want to do tho
right thing for labor, who pay good wages, who rocognizo the rights of labor,
should be protected by labor itsolf against unfair compotition caused by
inforior working conditions in other parts of the country.
Jurisdictional strikos must bo avoided. Suroly labor can
provido the gonius and the good will to provont a stoppago of work ofton
involving hundrods of innocont workors on a job because of somo jurisdictional
disputo. The employer or tho contractor is holpless. Government modiation
or conciliation agencios aro holploss.
moro -
Inclassified
17
-15-
À groat doal of thought should be given to this. The art of construction, im-
provoment in machinory, plastics and now matorials will como into use rapidly
after the war. Those aro often tho causes of jurisdictional disputus as to
who will do tho job. This is labor's problem. Tho employer, the contractor,
is not concorned. The cost is the samo to him. Thoroforo, it is labor's
rosponsibility to provide tho machinory for tho adjustments of such disputos
within its own rank without the interruption, the dolay, or losses to the
contractor or omployer and to labor itsolf. I know that poople unfamiliar
with labor conditions will boliove that a suggostion of this kind is wholly
unnocossary, but thoso who have oxporionco know how costly a jurisdictional
striko is to both labor and employor. Assurance of the olimination of this
ovil should be comploto.
Labor organizations have sought honorably to maintain tho torms
and conditions of agroomonts. Recontly a bad practiso has boon crooping in of
mass "sicknoss" and stoppago of work, which of courso is nothing but an
unlawful striko. In such instances, tho labor organization concorned should
assumo tho rosponsibility of filling the vacant ranks in ordor to continuo
sorvico and production in accordanco with tho torms of tho agrooment that
labor itsolf has signed and plodgod to maintain.
Labor can bo most holpful in maintaining standards of living as
woll as in the social woll boing of tho poople of this country. It can also
sorvo vory helpfully in ostablishing rolations with lubor of other countries
in aiding to ostablish propor standards of living, and tho and of systoms of
starvation wagos dotrimontal to countrios whore docont standards exist.
Labor must also police its own ranks and drivo from within its midst crooked
londors and anyono who would rackotoor or who would botray the causo of labor.
And, finally, labor must not only opon its doors but its books to the roturning
votorans without oxcossivo initiation or admission duos, In faot, it would be
mart to givo memborship to mon and womon in labor organizations on tho prosenta-
tion of an honorable discharge. We must not forgot thousands of boys have boon
instructed and trainod in skillod trados. The Soaboos of the Navy, the Engineor
Corps of the Army, the Signal Corps, the Air Corps, yes and tanks and all the
mechanized branchos of tho armed foroos, have instructed and trained thousands
and thousands in skillod trados.
moro
Regraded Unclassified
18
-16-
Thuso boys must have a chanco to work. Those boys are ontitled to a job.
I strongly adviso labor to taku thoso votorans into thoir organizations and
to adopt tho system of sharing the work - ono workor and ono votoran for every
two now jobs available.
In conclusion I say that I know a groat doal of all this
sounds visionary, but I can assuro you it is not only necessary but practical.
To slip up on any ono of the various factors nocossary for a postwar prospor-
ous, poacoful world is courting disastor. I hato to say this, but unloss wo
aro suro that the economy of our own country will bo well-balancod, that
thore will be work for all and social security, wo are in for vory serious
troublo. Is it not bottor to plan ahoad and to doliboratoly proparo for
the situation, constructivoly and in an ordorly mannor? If wo fail, it will
ba disordorly and troublosomo. It will load to sorious conditions, ovon
moro sorious than WO daro to contomplato. And it will bo so much loss
costly to arrange our postwar national system intolligontly than to be caught
unproparod, to bo mot with troublo, and costly palliativos and mko-shift
solutions.
Will tho postwar poriod bo costly? Yos, bocause it is part
of tho war and it is just impossible to snap back into poaco and normal ponco-
timo conditions in ono instant. With provisions alroady mado by Congross
or now under considoration, tho fiscal yoar following the ond of tho war will
roquiro about 70% of the last war fiscal your. Tho accond yoar porhaps 50%
of tho averago yourly cost of the war. Tho third your 25% and from that point
taporing off. This, of courso, assumos a completo, woll coordinated postwar
program.
Somo will say, "But somo of tho suggostions will bo costly."
110, not at all. Social sccurity will not bo costly if our oconomy is based
on & hugo production and pooplo are employed. Thoro is one complaint that tho
plan for disposing of surplus food and othor natural resources will incroase
the cost of living. No, not at all, Much choapor than providing roliof for
the unemployed, much cheapor than subsidizing roducod production or killing of
livostock. Much cheapor whon it will bring into the country goods and
commodition that wo cannot grow or produce,
moro
Regraded Inclassified
19
-17-
It will be pointod out that not disposing for cash surplus war matorials
will ontail groat loss. Not at all, whom you considor the loss in omploy=
mont and production awaiting tho consumption and uso of the surplus war
matorial. Somo employors will any that the annual pay will incroase the
cost of production, and labor londors will say that it in not practionl
and that the workurs will got loss. Both aro wrong. It can be mathomaticully
domonstrated that it will incroaso the pay of the workor, roduco the cost
of production.
I fool that wo are tno most fortunato pooplo in the wholo world.
Our task is 80 much oasior than thu postwar task of Groat Britain, Franco
or China. To cannot ovon compare the 0080 of our postwar task with that
of tho invadod countries or of Gormany and Japan by tho timo TO aro through
with thom. To start with, wo havo the roscurcos. Our country has not and
in all likolihood will not suffor any dovistation. Would it thoroforo not
be an unpardonable failuro and a blomish on our gonoration if wo fumblo at
this timo?
Tho disastrous offoct, tho failuro of a plan to provido for
a sound oconomic postwar socioty in our country, will bring havoo and ruin
to us in this day and maleo it extromoly difficult for the next and the
gonoration aftor that. The problems that wo must considor and solvo aro
not political. Our problems aro oconomic and social. Wo cannot dolay. To
must work out, not a domocratic boonomy or a ropublican oconomy; it must
not bo toutonio or slavic or 1ntin - WO must Jvolvo a puroly Amorican
oconomy to moot our noods, our habits, our customs and our system of govorn-
mont. IL will roquiro gonorosity in politics, particularly in this yoar)
it will roquiro goodwill on the part of all mon. It will roquiro unsolfish-
noss to tho groatost dogroo on the part of all the groups: capital, labor,
social and politionl. It will requiro unsolfish, patriotic teamwork. It will
roquire courago, the liko of which no statosman in the ontiro history of
our country has boon callod upon to display. It can bo dono - it should be
dono. With God's holp, wo will do it.
Regraded Unclassified
20
25
August 16, 1944.
My dear Mr. Minister:
Your letter of August 14, which us-
closed a copy of a address you mde over
the redio recently, has been received here
during the Secretary's absemen from the
country. I shall be very glad to bring your
letter and its enclosure to Mr. Morgenthan's
attention as seen as he returns to the
effice, and neamwhile, I know he would wish
- to thank you for your courtesy in sending
him a copy of the speech.
Sincerely years,
(Signed) H. S. Klotz
: si Reta,
Private Secretary.
Nemerable Hagues Le Callais,
Minister of Lunembourg to the
United States,
Legation m Grant-Dushi
Do Laneabourg,
Vachdagton, Do c.
GEF/dbs
Regraded Unclassified
Mr. Whit?1
LEGATION DU GRAND-DUCHÉ
DE LUXEMBOURG
WASHINGTON, D.C.
August 14,1944
My dear Mr. Secretary,
I have the honor to enclose
herewith the text of a radio address I made last
week. The subject is the treatment of small nations
at International Conferences.
With my very best wishes that
Congress will pass the Fund and Bank agreements,
I am, my dear Mr. Secretary,
Yours sincerely,
The Honorable
Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D.C.
Regraded Unclassified
22
BROADCAST BY THE HONORABLE HUGUES LE GALLAIS, MINISTER
OF LUXEMBOURG TO THE UNITED STATES.
STATION WWDC, WASHINGTON, 9:15 p.m.
AUGUST 8,1944
Treatment of Small Nations at
International Conferences.
Mr. Baton:
I have the pleasure to introduce the Honorable
Hugues Le Gallais, Minister of Luxembourg to the
United States. Mr. Le Gallais is the representative
in Washington of one of the smallest of the European
Nations, with a population of three hundred thousand
inhabitants and an area covering one thousand square
miles. The history of the Grand Duchy of Luxembourg
goes back over a thousand years, and although the
country was occupied many times by different nations,
the people of Luxembourg have retained a proud and in-
dependent spirit. During the present war they have
courageously stood up against the German invader and
they were the first of the occupied countries to declare
a general strike. The lot of the Luxembourg people has
been exceedingly hard because the Nazis have forced
their young men to don the hated German uniform and to
fight against the liberators of their country. I can
imagine no greater tragedy for parents than to lose
their children under such conditions of uncivilized
warfare.
Mr. Le Gallais has had the good fortune to be
appointed the representative of his country at the
Regraded Unclassified
23
-2-
three International Conferences which have taken place since
about one year; the United Nations Agriculture and Food Con-
ference held at Hot Springs, Virginia, the United Nations
Relief and Rehabilitation Administration Conference hold at
Atlantic City, and the United Nations Monetary and Financial
Conference held at Bretton Woods, New Hampshire.
Mr. Minister, may I now ask you to give us some of your
personal impressions about these conferences.
Mr. Le Gallais:
with pleasure, Mr. Eaton. I will first of all tell you
what were my views at the end of the Conference on Food and
Agriculture, by reading a press statement I made in June of
last year:
"Upon leaving Washington for Hot Springs, I was thinkin
of a conversation between the Honorable Cordell Hull, Secre-
tary of State, and Mr. Joseph Bech, Minister of Foreign Af-
fairs of Luxembourg, at which I was present. Mr. Hull said
that when he went to the first Pan-American Conference at
Montevideo, he acted on the principle that all Nations there
represented were to be considered as equals, and he added that
this principle had been maintained at subsequent conferences.
Luxembourg, concluded Mr. Hull, would be given the same
treatment here.
These were very considerate words on the part of the
Secretary of State, and while on my way to the Conference,
I was wondering how things would turn out in practice.
Well, amazing as it may seem, the representatives of
small Luxembourg really did get the feeling that the con-
Regraded Unclassified
24
-3-
ference was being run on this principle of equality among the
Nations represented. In no instance was any attempt made to pre-
vent a Delegation from voicing its opinion. On the contrary, the
Chairman of the Conference and the Chairman of all the Sections
and Committees took great care to insure that each speaker had
sufficient time to explain his point of view. In the same spirit,
the General Secretariat, which incidentally deserves high praise
for its untiring efforts to satisfy all concerned and for the ex-
cellent results obtained, endeavored to arrange, and succeeded in
having at least one member of most of the Delegations act in one
or another official capacity.
In conclusion, I would like to say that after having seen
the principle of equality among Nations ennunciated by Mr. Cordell
Hull so effectively put into practice at this Conference on Food
and Agriculture, it does not seem too optimistic to entertain very
high hopes that the people of the world are entering into a better
phase in the realm of international relations."
When I returned to Washington, my friends who had heard
about this statement said: That is all very well, but you should
consider that this was a Conference concerning long range problems
and not involving questions of immediate vital interest to the
Nations there represented." They concluded: "Let's wait and see
what happens at the next conference."
Somehow I was not convinced by this argument, but nothing
further could be said at that time.
r. Eaton:
Well, Mr. Minister, you have made me quite curious as to
what your experiences have been at subsequent conferences and
especially at the last one at Bretton Woods, because certainly,
Regraded Unclassified
25
-4-
when it comes to money one cannot say any longer that no vital
interests are involved.
Mr. Le Gallais: The reply is very simple, Mr. Eaton; the United Nations
Relief and Rehabilitation Administration Conference held at the
end of last year, and the United Nations onetary and Financial
Conference which ended about two weeks ago, were both run on the
same lines as at Hot Springs. Every Delegation was given ample.
opportunity to express its views; most of the Chiefs of Dele-
gations had to act in one or another official capacity and care
was exercised to see to it that geographical factors were taken
into consideration. The principle of equality among sovereign
Nations was fully maintained and a real spirit of cooperation
was always present. This is & remarkable achievement when you
think that the representatives of forty-five Nations were dis-
cussing immediate post-war relief, & problem of tremendous 1m-
portance for the welfare of their fellow countrymen, and examin-
ing financial matters which would have a great bearing upon the
future prosperity of their countries.
Mr.Eaton:
Quite right. And all the more so when you consider that
these countries representing all the parts of the world must have
quite different self-interests. Can you give us an example of
this, Mr. Minister?
Mr. Le Gallais: Why, of course. Most of the European countries are interested
first of all in reconstruction, whereas the countries of Central
and South America for instance, are concerned with the develop-
ment of the natural resources whitin their boundaries. Further-
more, a certain number of European countries have large reserves
of gold and gold convertible exchange, and their delegates at
Regraded unclassified
26
-5-
Bretton Woods could have said: "We don't need this bank; we
will finance by ourselves our reconstruction plans." However,
these representatives realized that such a too self-interested
spirit would lead their countries nowhere because if all the
rich nations reasoned alike there would be no international
bank and there would not be sufficient funds available to help
promote production in the undeveloped countries and thus the
predominantly industrial nations would find no customers to
purchase their manufactured goods. In the same way the repre-
sentatives of certain Latin-American Republics might have said:
"We have gold and dollars, we don't need the bank, we will fi-
nance with our own means the development of the natural resources
of our countries." But these Delegates wisely realized that this
would be a short-sighted policy and that by helping to create
the fund and the bank, they were promoting a regular flow of
international trade and were enabling some of the occupied
countries to reconstruct their ruined national economy, thus
allowing them to purchase more goods from abroad. As Dr. H.
K'ung, the Minister of Finance of China, most appropriately said:
"The Bretton Woods Conference was held in a spirit of give and
take."
Mr. Eaton, I started this broadcast by refering to the
principle of equality among Nations on which the Secretary of
State, Mr. Cordell Hull, acted at the first Pan-American Con-
ference at Montevideo, and I believe it is proper at this time
to say that this principle has been respected by other Depart-
ments of the Government of the United States of America.
Regraded Unclassified
27
-6-
Namely at Hot Springs by Judge Marvin Jones, President of the
Conference, by Mr. Paul Appleby, then Under Secretary of Agri-
culture and by Mr. William C. Clayton, then Assistant Secretary
of Commerce; at Bretton Woods, by Mr. Henry Morgenthau, Jr.,
Secretary of the Treasury and President of the Conference, by
his close Assistants, Dr. Harry White and Mr. E. Bernstein, as
well as by Judge Fred Vinson, Director of the Office of Economic
Stabilization; at the Atlantic City Conference, the president
was Mr. Dean Acheson, Assistant Secretary of State who worked
wonders, and the Director General of the United Nations Relief
and Rehabilitation Administration, Governor Herbert Lehman, also
proved to be a great friend of the small Nations.
At the three Conferences, the Secretary General was Dr.
Warren Kelchner of the State Department to whom all Delegates
owe a great debt of gratitude for his untiring efforts to satisfy
all concerned.
In conclusion, I would like to say that I believe strongly
that the United and Associated Nations are started on the right
track towards world collaboration. They may have to face setbacks,
but that should not prevent them from clinging with grim determ-
ination to the common purpose they have set for themselves, and
this, with a clear vision that side tracks will lead nowhere and
that there is no way back. The United and Associated Nations,
large and small, have now successfully withstood the test of
three International Conferences. May God grant them the strength
to carry on in the same spirit of cooperation and good will:
one for all and all for one.
Regraded Unclassified
28
-7-
Mr. Eaton:
Thank you, Mr. Minister. You have just heard Mr. Hugues
Le Gallais, Minister of Luxembourg to the United States, who
has spoken to you from Washington on the sub ject: "Treatment
of Small Nations at International Conferences."
Regraded Unclassified
Treasury Department
29
Division of Monetary Research
Date 8/18/44 19
To:
Mrs. McHugh
This letter was sent to Mr. Glasser
by a covering letter from Mr. Valensi
dated 8/17. A reply is being prepared
by Mr. Glasser.
Re letter of Aug. 2 referred to:
Mr. Bell sent us a photostat on
Aug. 9, and we prepared the reply.
jm
MR. WHITE
Branch 2058 - Room 2141
30
1800 MASSACHUSETTS AVE. nv,
GOUVERNEMENT PROVISOIRE
xxxxxxxxxxxxx XXXXXXXXXXXX
AUGUST 16, 1944.
ATTACHE FINANCIER
NF 198
CV/MJ
DEAR MR. SECRETARY
I WISH TO ACKNOWLEDGE RECEIPT of AND THANK YOU FOR THE LETTER
DATED AUGUST 12 FROM MR. D. ONL, UNDER-BEGRETARY or THE TREASURY,
INFORMING ME OF YOUR AGREEMENT REGARDING OUR NEV - FOR FRAME NOTES.
FURTHER TO w LETTER DATED AURUST 2, 1944, I RECEIVED INSTRUC-
TIONS FROM THE COMMISSIONER FOR FINANCE IN ALBIERO REQUESTING THAT THIS
ORDER BE INCREASED. THIS INCREASE WOULD CALL FOR - ADDITIONAL THREE
HUNDRED MILLION 100-FRANS NOTED, THIS SAINSING THE TOTAL AMOUNT FOR THE
ORDER TO THE FOLLOWING FIGUREST
200 MILLION 500-FRAMS NOTES - VALUE se BILLION PRAMES
⑉ MILLION 100-FRAME NOTES - VALUE se BILLION FRANCE
TOTAL: 980 MILLION NOTES, FOR A VALUE or 130 BILLION FRANCO.
THESE FIGURES SHOULD THEREFORE BE SUBSTITUTED FOR THOSE GIVEN IN MY
LETTER DATED AUGUST 2, 1944.
I VOULD APPRECIATE RECEIVING CONFIRMATION or YOUR AGREEMENT 19 THE
ORDER THUS AMENDED, WHICH WOULD BE CARRIED our AND PAID FOR UNDER THE -
DITIONS STATED IN THE LETTERS DATED MAY 17, 1944, - COMPIRMED BY MY
LETTER OF AUGUST 2./-
HH
Curraleur FAITHPULLY VOURS,
to
CHRISTIAN VALENOI
PERMITES ATTACHE
HENRY M., Eag.,
GEORETARY OF THE TREASURY,
TREASURY DEPARTMENT,
WASHINGTON, D.C.
Regraded Unclassified
31
1800 MASSACHUSETTS AVE, NW,
GOUVERNEMENT PROVISOIRE
X
LE 16 AOUT 1944.
ATTACHE FINANCIER
AF
CV/MJ
MONSIEUR LE SECRETAIRE MI TRESOR,
J'M L'HONNEUR D'ACCUSER RECEPTION ET DE vous REMERCIER DE LA LETTRE
BU 12 AOUT DE M, DANIEL SELL, BOUS-BECRETAIRE AU TREBOR, ACCEPTANT NOTRE
NOUVELLE COMMANDE DE BILLETS FRANCO,
DEPUTE MA LETTRE DU 2 MUT, LE COMMISSARIAT AUX FINANCES MA FAIT
PARVENIA D'ALGER DES INSTRUCTIONS EN VUE D'UNE EXTENSION DE CETTE COMMANDE.
CETTE EXTENSION PORTERAIT SUR 200 MILLIONS SUPPLEMENTAIRES DE BILLETS DE
160 FRANCE, ET PORTERAIT AINSI LE MONTANT TOTAL K LA COMMANDE AUX CHIFFREE
QUIVANTS!
see MILLIONS DE BILLETS DE SOOP VALANT se MILLIARDS DE FRANCS
....MI MILLIONS DE BILLETS or 1007 VALANT_RE MILLIARDS BE FRANCS
TOTAL 980 MILLIONS DE BILLETS
VALANT 130 HILLIARDS DE FRANCE
CES CHIPPRES DEVRAIENT BONG ETAC SUBSTITUKE A atux FIGURANT DANG MA
LETTRE BU 2 AOUT.
& vous BERAIS TREE ONLIGE DE SIDI YOULDIR NC COMPERMER VOTRE ACCORD
POUR CETTE MODIFICATION DANS LA COMMANDE, DONT LES CONDITIONS D'EXECUTION
DENEURERATION CELLES PREVUES PAR L'ECHANGE BE LETTRES ou 27 MAI ET CONFIR-
NEED PAR NA LETTRE DU 2 MUT.
VEGILLEZ ABREER, PRONSIEUR LE SECRETAIRE w TAESON, LES ASSURANCES se
MA MAUTE CONSIDERATION./.
Un balents
CHRISTIAN VALENGI
ATTACHE FINANCIER
MAITRE DES REQUETED w CONSEIL D'ETAT
MONSILEUR HDRY MORGENTHM, me,
DEGRETAIRE AU THESER,
WASHINGTON, D.C.
31-A
Letters
&
AUG 12 1944
Dear Mr. Valonsi:
In respect to your letter of August 2, 1944 to Secretary
Morgenthau requesting the printing of 600 million individual
frame notes of a total value of 100 billion france, I vish to
inform you that we are prepared to proceed with this order as
woom as the first order for 305 million individual frass
notes of a total value of 300 billion france to completed.
We coasur in your request that this order be carried out
under the terms and conditions set forth in my letter to M.
Mendes-France, Commissioner for Vinance, dated May n. 1944,
and the letter to Secretary Margenthau from M. Hendes-France,
dated May 27. 1944.
Very truly yours.
(SIGNED) D. W.BELL
Under Secretary of the Treasury.
Mr. Christian Valenci,
Financial Attache,
French Delegation,
1600 Massachusetts Avenue, Northwest,
Washington 6, D. e.
WMF:lse 8-11-44
Regraded Unclassified
31-B
C
0
P
Gouvernement Provisoire
Y
August 2, 1944
Henry Morgenthau, Jr., Esq.,
Secretary of the Treasury,
Washington, D. C.
Dear Mr. Secretary:
In reference to your letter to Mr. Mendes-France, French
Commissioner for Finance, dated May 27, and the letter of Mr. Mendes-
France to you also dated May 27, I wish to advise you that the pro-
visional Government of the French Republic wishes to complete the
issue of franc notes which is now being printed by your Department
by a new order.
This order, which will be carried out and paid for under the
conditions stated in the letters of May 27, will involve the following
amounts:
100 million notes of 500 frs. of a value of 50 billion france
500 million notes of 100 frs. of a value of 50 billion francs
or a total of:
600 million notes of a value of 100 billion france
I would much appreciate your kindly giving me confirmation of
your agreement on this matter.
Yours sincerely,
s/ Christian Valensi
Christian Valensi
Financial Attache
Regraded Unclassified
31-C
P
y
LE COMMISSAIRE AUX FINANCES.
May 27, 1944
AF/46
Dear Mr. Secretary:
Reference is made to your letter to me of this date relating
to the printing of franc notes to be used in France by the French
civilian authorities upon liberation.
The terms and conditions set forth in your letter are not ex-
actly those which I had hoped for, and I should like to express
reserves upon the political reasons for some of these terms and
conditions. However, in view of the urgency of this matter, I
agree to the terms and conditions set forth in your letter, as
follows:
(1) There will be printed 305 million individual franc notes
of EL total value of 300 billion francs as follows:
Number
Denomination
Franc Value
50 million
500 francs
25 billion
250 million
1000 francs
250 billion
5 million
5000 francs
25 billion
(2) The franc notes will be exactly the same in design as
those notes which are currently being printed for the Supreme Com-
mander, Allied Expeditionary Forces, except that the word "FRANCE"
will be substituted for the phrase "EMIS EN FRANCE" in two places
on the face of the notes and the word "FRANCE" will be substituted
for the flag on the back of the notes.
(3) Printing of the notes will begin as soon as possible after
June 15, 1944, when the printing of notes for the Supreme Commander,
Allied Expeditionary Forces, is scheduled to be completed, and will
be completed as soon thereafter as available facilities will permit.
It is estimated that the printing of these notes would take approx-
imately 2 months from June 15th, 1944.
Mr. Henry Morgenthau, Jr.,
Secretary of the Treasury
C
o
P
y
Regraded Unclassified
31-D
- 2 -
(4) The notes will be released to French control only at
such time as the decision to release them can appropriately be
made by the Government of the United States.
(5) The French Committee of National Liberation will pay
in dollars the full cost of manufacturing, shipping, and storing
the notes, at such times and in such amounts as the Secretary of
the Treasury shall request. Payment may be called for as often
as may be necessary to keep the United States currently reimbursed
for such costs. Payment shall be made without regard to any decision
made under paragraph (4) above.
I note that you have estimated that the total cost of manu-
facturing and preparing for shipment of the quantities of franc
notes above specified will be approximately $832,650.00.
I note also that you will explore the possibility of com-
plying with my request that the U. S. Government store the notes
one-half in Great Britain and one-half in North Africa until such
time as their release to French authorities may be made as pro-
vided in paragraph (4) above; and that you will investigate the
availability of additional printing facilities which would ex-
pedite the completing of the notes. We plan to place with you a
second order for approximately 300 billion francs consisting of
notes in smaller denominations than above specified, and, in view
of this fact, the availability of additional facilities is of
particular importance to us in order that production may be accel-
erated as much as possible.
Very truly yours,
(Signed) Mendes-France
Regraded Unclassified
31.E
P
y
May 27, 1944
Dear M. Mendes-France:
Reference is made to Secretary Morgenthau's letter to M. Jean
Monnet, dated April 28, 1944, and to your letter to him dated May 13,
1944, relative to the printing of franc notes to be used in France by the
French civilian authorities upon liberation, and to subsequent conversa-
tions you have had with representatives of this Department.
I am setting forth below the terms and conditions upon which the
franc notes referred to above may be printed:
(1) There will be printed 305 million individual franc
notes of a total value of 300 billion francs as follows:
Number
Denomination
Franc value
50 million
500 francs
25 billion
250 million
1000 francs
250 billion
5 million
5000 francs
25 billion
(2) The franc notes will be exactly the same in design as
those notes which are currently being printed for the Supreme
Commander, Allied Expeditionary Forces, except that the word
"FRANCE" will be substituted for the phrase "EMIS EN FRANCE"
in two places on the face of the notes and the word "FRANCE"
will be substituted for the flag on the back of the notes.
(3) Printing of the notes will begin as soon as possible
after June 15, 1944, when the printing of notes for the Supreme
Commander, Allied Expeditionary Forces, is scheduled to be
completed, and will be completed 8.S soon thereafter as available
facilities will permit. It is estimated that the printing of
these notes will take approximately two months from June 15,
1944.
(4) The notes will be released to French control only at
such time as the decision to release them can appropriately be
made by the Government of the United States.
(5) The French Committee of National Liberation will pay in
dollars the full cost of manufacturing, shipping, and storing the
notes, at such times and in such amounts as the Secretary of the
Regraded Unclassified
31-F
- 2 -
Treasury shall request. Payment may be called for as often as
may be necessary to keep the United States currently reimbursed
for such costs. Payment will be made without regard to any
decision made under paragraph (4) above.
It is estimated that the total cost of manufacturing and preparing
for shipment of the quantities of franc notes above specified will be
approximately $832,650.00.
I will explore the possibility of complying with your request that
the United States Government store the notes one-half in Great Britain
and one-half in North Africa until such time as their release to French
authorities may be made as provided by paragraph (4) above; and I will
investigate the availability of additional printing facilities which
would expedite the completion of the notes. I understand that you plan to
place B. second order for approximately 300 billion francs consisting
of notes in smaller denominations than above specified, and, in view of this
fact, that you attach particular importance to the availability of
additional facilities in order that production may be accelerated as much
as possible.
Will you please confirm by letter your agreement to the terms and
conditions specified above for the printing of the franc notes.
Very truly yours,
(Signed) D. W. Bell
Acting Secretary of the Treasury.
M. Pierre Mendes-France,
Commissaire aux Finances,
Comite Francais de la Liberation Nationale.
Regraded Unclassified
32
VICTORY
BUY
EXECUTIVE OFFICE OF THE PRESIDENT
UNITED
STATES
WAR
BONDS
WAR REFUGEE BOARD
STAMPS
WASHINGTON 25, D.C.
OFFICE OF THE
EXECUTIVE DIRECTOR
AUG 16 1944
My dear Mr. Secretary:
I am enclosing herewith a copy of the
report of the War Refugee Board for the week of
July 31, to August 5, 1944.
Sincerely yours,
Pehle
Executive Director
The Honorable,
The Secretary of the Treasury.
Enclosure.
Regraded Unclassified
33
Report of the War Refugee Board
for the Week of July 31 to August 5, 1944
EMERGENCY REFUGEE SHELTER IN THE UNITED STATES
Arrival of 984 Refugees from Italy
The refugees destined for the Emergency Refugee Shelter
at Fort Ontario have arrived and are being settled in their
new quarters. The group represented nineteen nationalities,
including persons from Austria, Yugoslavia, Poland, Germany,
Czechoslovakia, Russia, Danzig, Rumania, Turkey, Bulgaria,
Hungary, Greece, Spain, and France. Ages ranged from 3 weeks
to BO years. 754 of the refugees, including 225 children,
comprise 261 family groups; each family is to have its own
quarters, apartments consisting of one, two, or three bedrooms,
according to family size, and a kitchen. There are dormitor-
ies for the single persons. A private agency is attempting
to get in touch with relatives of the refugees who may be in
this country to notify them of the arrival of their kin from
Europe. The arrival of these refugees received wide and very
favorable press comments.
SITUATION IN HUNGARY
The Horthy Proposal
Through the International Red Cross, the Horthy govern-
ment has recently indicated to the governments of the United
States and Great Britain that it will permit the emigration
of certain categories of Jews. The proposal apparently is
the result of the various warnings and appeals that have been
addressed to the Hungarian authorities. Since it is couched
in terms which in effect say "we will permit Jews to leave
Hungary if the United States and Great Britain will take care
of them, Il it is regarded as a direct challenge to the two
governments.
At the instance of the Board this government proposes
to accept the challenge. We have submitted our views to the
British who we hoped would agree to join us in a reply to
the International Red Cross on August 7th, in which we ask
the International Red Cross to advise the Hungarian Govern-
ment that we will undertake to care for all Jews who are
permitted to leave Hungary and who reach neutral or United
Nations territory, and to find havens of refuge for them.
We have taken the position that our acceptance of the
proposal should be so clear and unequivocal that in the eyes
of the Hungarians and of the world our action will be regarded
Regraded Unclassified
34
- 2 -
as a genuine expression of our willingness to save the Jews of
Hungary. Accordingly, our reply to the International Red Cross
was cabled to Minister Harrison in Bern for delivery on August
7th. In response to the British government's request for a
delay of three or four days, it was later agreed that delivery
of our reply should be postponed until August llth.
International Red Cross Work in Hungary
We were advised by our representative in Bern of the
publication on July 18 of an International Red Cross Committee
communique announcing that the Hungarian authorities, following
steps taken in Budapest by the International Red Cross Committee
in Geneva, have given the Committee official assurances that
transportation of Jews beyond Hungarian frontiers has ceased;
that the Committee is authorized to furnish relief to Jews
interned or in forced residence in Hungary, and is empowered to
cooperate in the evacuation of all Jewish children under ten
years of age who are in possession of visas to reception
countries; and that all Jews in Hungary holding entrance visas
to Palestine will receive permission from the authorities to
leave for that country.
McClelland discussed this whole question on July 24th with
Carl Burckhardt, acting president of the International Red
Cross Committee, and recommended that the International Red
Cross discuss with the Hungarian Government the question of
raising the age limit of the children to be evacuated to sixteen
years for boys and eighteen years for girls. The Committee is
awaiting detailed confirmatory information from its delegate
in Budapest, particularly regarding evidence that the Internation-
al Red Cross representatives will actually be accorded local
permission and practical possibilities to carry out a relief
and evacuation program. The Committee has already dispatched
one of its delegates from Berlin to Budapest and plans to send
three more representatives as soon as possible. Burckhardt
intimated that there might be a possibility of arranging to
dispatch to Hungary one or two capable Swiss persons as con-
fidential WRB representatives, probably attached to the
International Red Cross mission.
Hungary Agrees to Permit Sending of Food Packages through
International Red Cross to Persons Interned in Concentration
Camps
The Apostolic Delegate in Washington has advised this
Government of the approach by the Holy See to the Apostolic
Nunciatures in Germany, Rumania, Hungary, and Slovakia, to
enlist their interest for the purpose of obtaining for Jews
interned in Germany and Axis-controlled countries treatment
Regraded Unclassified
35
- 3 -
similar to that granted to civilian internees to whom the
provisions of the Geneva Convention are applied by analogy.
The Apostolic Nunciature in Budapest has responded to the
Cardinal Secretary of State, informing h1m that the Government
of Hungary will authorize the sending of foodstuffs through
the channels of the Red Cross to persons interned in concentra-
tion camps.
Spanish Visas for Hungarian Jews
We were advised by our Embassy in Madrid that, in response
to separate representations on the part of the Embassy, the
Spanish Government has already authorized issuance of visas to
500 Jewish children in Hungary whom it is desired to bring to
Spanish Morosco for temporary refuge. This is in addition to
the 1500 Spanish visas authorized for Jews in Hungary and
Germany to whom Palestine entry permits had been or were to
be issued.
Palestine Certificates for Hungarian Jews
In 2. further report on the situation in Hungary with
respect to efforts to rescue the Jewish population, Hirschmann
advised us that lists of the names of 8,200 persons for whom
Palestine certificates have been authorized have been delivered
to the Swiss Legation in Hungary through the Swiss Minister in
Ankara. The latter and the British Embassy in Ankara have
confirmed to Hirschmann that they both had information to the
effect that these lists have been received in Budapest. In
view of the probability that many of the approved certificate
holders have already been deported, methods of attempting to
locate these deportees are being explored in order that the
certificates may be made available to them.
Of these 8,200 Jewish refugees, 2,000 are preparing to
proceed from Hungary to Rumania and are awaiting Rumanian
transit visas. Hirschmann has urged Cretzianu to press his
Government in Bucharest to provide these visas without delay.
Additional lists are being prepared by the Jewish Agency
for submission to the British who have up to the present
authorized certificates for all names that have been submitted.
EVACUATIONS TO AND THROUGH TURKEY
40 Children Arrive from Bulgaria
After waiting for two years, 40 Bulgarian refugee children
finally arrived by rail in Ankara on July 30 and departed the
Regraded Unclassified
36
- 4 -
following day for Palestine, according to a report received
from Hirschmann, These children indicated that about 200 more
were being prepared for emigration from Bulgaria by rail via
Turkey to Palestine.
Hirschmann is pursuing the matter further to ascertain the
intentions of the Bulgarian Government with reference to its
Jewish citizens and their emigration. The Jewish community of
Rousse has been officially designated as the agency to make
arrangements for those Jews wishing to go to Palestine.
(Minister Johnson has advised us from Stockholm that
Ehrenpreis, former Chief Rabbi of Bulgaria, has received written
assurances that everything possible is being done to improve
the situation of the Bulgarian Jews.)
We have inquired of Hirschmann whether efforts are being
made to induce Turkey to permit the transit of the 400 to 500
refugees which he had reported Bulgaria was ready to allow to
emigrate weekly.
Turkish Shipping Restricted
Our Embassy in Ankara has notified us that Turkey has
discontinued the movement of Turkish ships in the Aegean and
Black Seas. However, they will permit the sailing of certain
ships between Iskenderun and Mersin, as well as some wooden
ships to transport coal between Istanbul and Zonguldak.
Proposal to Evacuate Refugees on Rumanian Boats
Minister Johnson in Stockholm has informed us that the
Rumanian Minister to Sweden strongly supports a proposal to
evacuate Jews from Rumania. He has agreed to forward with a
favorable recommendation the request of the Stockholm section
of the World Jewish Congress that the Rumanian Government
supply transportation for this purpose. The Rumanian Minister
1s quite optimistic and believes that not only will his
government be receptive to this request but also that the
Germans will not be in a position to refuse safe-conduct.
However, in view of the extensive sinking and damage of
Rumanian transport vessels at Odessa, he does not think that
more than two Rumanian boats are available unless in addition
two or three of those damaged were returned and made service-
able. The proposal will, of course, receive our careful
consideration and will be sent to Hirschmann in Ankara for his
views and recommendations.
CONDITION OF JEWS IN TERRITORY LIBERATED BY SOVIET RUSSIA
The Board has asked the American Embassy in Moscow to obtain
through official channels information concerning the numbers
Regraded Unclassified
37
- 5 -
and condition of Jews found in Soviet-liberated areas and
concerning the treatment of civilian populations during enemy
occupation.
RUSSIAN REFUGEES
McClelland, our representative in Switzerland, advised us that,
on the basis of reports received from the International Red
Cross delegate in Bucharest, the International Red Cross has
made an urgent appeal for funds to assist several thousand
Soviet refugees who were forced to leave their homes by the
retreating Germans and who are in an extremely precarious
situation in Rumania. International Red Cross delegates have
also approached the Rumanian Government in an attempt to secure
work permits for them.
The Board cabled this information to Ambassador Harriman in
Moscow, suggesting that inquiry be made as to whether the
Russian Government is informed concerning the plight of these
refugees and whether it has any specific suggestion as to the
manner in which the War Refugee Board could assist in ameliorat-
ing their condition. At the same time we notified Hirschmann
of this report and asked him to investigate and report to us
any information which he may obtain concerning this situation.
JEWS IN ITALY
In answer to the State Department's inquiry concerning the
condition of Jews in Rome, Myron Taylor has reported that
12,000 Jews were in Rome before the Armistice (September 8, 1943)
and about the same number on June 4, 1944. In the intervening
period about 2,000 were lost due to deportations and massacres,
while approximately the same number arrived in Rome during the
period from Northern Italy and France.
INTERGOVERNMENTAL COMMITTEE
Removal of 3,000 Jewish Children from France to Portugal
Having been advised of a private proposal to evacuate
3,000 registered children from France to Portugal, the Inter-
governmental Committee cabled the Board that it felt the real
difficulty with the proposal was obtaining French permission
for the exit of the children from France. The Intergovernmental
Committee pointed out that, since approaches to the French by
Switzerland to evacuate children from France failed a few
months ago, it recommended approaches now to the French auth-
orities by the International Red Cross Committee. The Inter-
governmental Committee stated that it 1s ready to take this
up with the International Red Cross Committee either independent-
ly or jointly with the Board. We replied that, although the
Regraded Unclassified
38
- 6 -
proposal to remove 3,000 Jewish children from France was a
variant on 8. scheme which had been repeatedly rejected by the
French and Germans, nevertheless, we were willing to join the
Intergovernmental Committee in any request it saw fit to make
of the International Red Cross. The Intergovernmental Committee
had also suggested that the 5,000 American visas originally
intended only for children from France, arriving in Switzerland,
Spain, or Portugal should be used for those evacuated from
Hungary as well as from France. Our reply to the Intergovern-
mental Committee stated that the Board was in agreement with
this suggestion. We are presently completing the necessary
arrangements for this so that our consular officers in the
aforementioned neutral countries will be appropriately instructed.
Evacuation of Refugees from Northern Italy
Following our receipt of information to the effect that
Heathcotte-Smith recommended to the Office of the Intergovern-
mental Committee in London that an approach be made to the
Germans to release refugees deported from Italy and deliver
them to the Allies, the Board suggested to Ambassador Winant
that the matter be discussed with the British Government. We
indicated that we did not feel that we should limit ourselves
to deportees from Italy and reminded him of this Government's
position that it would, in cooperation with other sympathetic
governments, find havens of refuge for these victims of Nazi
persecution. Ambassador Winant replied that the Intergovern-
mental Committee suggested the intervention of the Vatican in
approaching the German Government concerning non-Italian
civilian refugees held in Northern Italy and that the British
and American Governments should assure the Vatican that
arrangements would be made for the transportation, care and
maintenance of the refugees.
The Board in its response to Ambassador Winant informed
him that Sir Herbert Emerson's proposal was completely accept-
able to our Government and suggested that the latter discuss
it with the British Government and secure its consent to
requesting the Vatican to intervene. This request is to
carry with it the understanding, as suggested by the Inter-
governmental Committee, that the British and American Govern-
ments will share the responsibility of making arrangements for
the transportation, care and maintenance of the refugees involved.
Plenary Session of the Intergovernmental Committee
We have received a cable from London quoting a press release
to British papers on the coming Plenary Session to be held in
London beginning August 15. The program calls for general
discussion of a full report to be presented by Sir Herbert
Emerson, the Director, on the work of the Committee during the
Regraded Unclassified
39
- 7 -
last year, as follows: (1) Measures relating to the rescue
and preservation of threatened persons still within the
territory of Germany and her European Allies or territory
occupied or controlled by them; (2) Pre-armistice measures
relating to persons who may have come out of such areas to
neutral or liberated areas; and (3) Post-armistice measures
for relief, repatriation, and resettlement of those who can-
not be repatriated.
RECOGNITION OF LATIN AMERICAN PASSPORTS
In response to Ambassador Norweb's cable suggesting our
approach to Switzerland concerning the deportation from
Vittel of hundreds of claimants to American and Latin
American citizenship, we asked him to send to Minister
Harrison and McClelland in Bern the list of people and other
documents which he advised he had received from refugees
recently repatriated to Great Britain via Portugal. We also
advised him that our representative in Bern was in frequent
communication with the Swiss on these matters and that
several important measures had been taken already with Swiss
assistance.
The Board cabled Minister Harrison and McClelland advising
them that we had information to the effect that further
deportations from Vittel took place on May 16 and requesting
that they make appropriate inquiries to determine the facts.
We also asked them to make efforts, if the report was found
to be true, in the manner previously outlined to them in
which we requested that representations in the strongest
terms be made on behalf of those to whom documents have been
issued in the name of American Republics.
Ambassador Winant cabled on August 2, 1944, advising of his
receipt of a detailed report dated July 7 from the Polish
Legation at Lisbon concerning the developments in Vittel.
This report includes the names of 260 Polish Jews holding
Latin-American certificates and indicates in each case whether
or not that person has been deported from Vittel. The Office
of the Jewish Agency in London has asked Geneva to inquire
about the location and condition of the deportees in view of
the fact that apparently most of them hold Palestinian
certificates also.
The Intergovernmental Committee believes that the only hope
for either those deported from Vittel or those still held
there is to include them in the actual exchange list for
Palestine or the American Hemisphere. The British Government
and the Jewish Agency have been consulted and everything is
being done to include those possessing Palestine certificates
in the next exchange. The Jewish Agency Office in Geneva has
Regraded Unclassified
40
- 8 -
advised the Intergovernmental Committee that the Germans
prefer South American exchange to exchange to Palestine.
The London Office of the Jewish Agency is asking that the
matter be taken up with the Board by its New York Office.
EVACUATION OF SPANISH REPUBLICAN REFUGEES TO MEXICO
In response to our cable of June 24, concerning the granting
of Mexican visas to certain Spanish Loyalists and other refugees,
Dexter advised us that he interviewed the Mexican Minister to
Lisbon whom he found to be sympathetic and convinced of the
need for prompt action on this matter. However, he learned
that there were some differences between the Mexican Minister
of Interior and the Mexican Foreign Office. Lists and pro-
cedures were being worked out while Mexico was being contacted
for further instructions.
Norweb informed the Board that State Department instructions
of June 24 for safeguarding the security of Spanish Loyalists
seeking visas to Mexico could be carried out. However, the
Mexican Minister had to await clarifying information from
his Government and realized that 1t was unwise to grant visas
until the Portuguese, Government had accepted his credentials.
Meanwhile, the preliminary security check of the refugees
concerned will be pursued in Portugal.
TEMPORARY HAVENS--MEXICO
The Board is seeking information through our Embassy in Mexico
concerning the text of an alleged proclamation by the President
of Mexico to the effect that that country will furnish
facilities for admission of refugees from enemy-occupied Europe
for the duration of the war.
RELIEF FOR FRENCH MAQUIS
McClelland reports that he has been in close contact with the
French "Conseil de la Resistance", especially with their
"Service Social" section. The "Service Social", which has
a very small budget, 1s burdened with an ever increasing
responsibility for assisting families of Maquis, of executed
patriots, and of hundreds of thousands of political prisoners
in France. McClelland reported that he has made funds avail-
able for this work and has paid for a modest cargo of medical
supplies for the program. McClelland's action received the
strong support of Minister Harrison who has joined MoClelland
in recommending B. continuation of assistance to this group
for humanitarian, military and political reasons. Meanwhile,
the Board has presented the problem and McClelland's recommenda-
tions to French relief groups in this country for their
consideration and possible aid.
Regraded Unclassified
41
- 9 -
RELATIONS WITH PRIVATE AGENCIES
Because of the serious overtaxing of government cable
facilities at this time, we have advised interested private
agencies in this country to transmit as many of their
messages as possible through commercial channels, unless
there is some compelling reason which requires the use of the
Board's facilities, in which case we are perfectly willing
to have our facilities used. We also pointed out that in
many cases private facilities have yielded quicker results
than are obtained through our facilities. Replies have
been received from the agencies indicating their understanding
of our position and their willingness to cooperate in every
way.
Executive Director
J. J Pehle
Regraded Unclassified
42
EMBASSY OF THE
UNITED STATES OF AMERICA
NO. 1780
San Jess, Cesta Rica.
August 16, 1944
Subject: Claimants to Cesta Rican Nationality
Removed from the Internment Camp at
Vittel, France.
SECRET
The Henerable
The Secretary of State
Washington, D. c.
Sir:
with reference to the Department's instruction
no. 607 of July 24. 1944, transmitting a list of the
claimants to Cesta Rican nationality who were reneved
from the internment camp at Vittel, France, I have the
honor to enclese herewith a copy and translation of a
note received from Foreign Minister Acenta on the subject.
It will be seen that the Minister for Foreign
Affairs reiterates his previous assurance that the
Cesta Rican Government will consider as valid doon-
montation hold by such persons which was issued is the
name of Cesta Rica. Mereever, he requests the United
States Government to ask the Swiss Government to address
a protest to Germany along the lines recommended in the
enclosure to the Department's instruction under refer-
eace. It will also be noted that he indicates a desire
to obtain the exchange of certain nationals in when the
Cesta Rican Government is particularly interested.
Respectfully yours,
Tay Allen Des Pertes
Enclosures:
Copy and translation of
Foreign Hinister's Note
1836-B of August 11. 1944.
310
LDV-mm
Regraded Unclassified
43
Enclosure 2 to despatch no. 1780
Regraded Unclassified
of August 16, 1944, from Embassy.
( Translation )
San Jase, Cesta Rica.
REPUBLIC OF COSTA RICA
MINISTRY OF FOREIGN RELATIONS
No. 1836-B
San Jene, August 11. 1944.
Mr. Ambassador:
I have the honer to acknowledge the receipt of Your Excellency's courteous
note No. 312 of July 31 last, in which you were pleased to communicate to no
that various persons claiming Cests Rican nationality, named as fellows:
Lichtmann, Wetsstein, Reashandler, Mandel-baum and Lidenbaum, have been removed
from the internment camp of Vittel, France. by the German authorities to use
known places; and with respect to this information, the Mubassy outlines the
measures taken with regard to persons in analegous circumstances as a result
of presenting documents of identification which the German efficials dispute
and designate as of unlawful origin.
Certainly the Government of Centa Rica has confirmed, in the notes cited
by Your Excellency, that it will consider effective and valid all the doou-
ments which numerous European individuals have submitted in order to obtain
the pretection of our flag. since it has no notice that these documents have
been deneunced as invalid, nor has it received authentic preef of such in-
validity. and while such domunciations and proofs are not produced and
qualified by the national authorities, the passports and documents emanating
from its efficials must be considered valid and sufficient for the purposes
for which issued. Consequently By Government demands for bearers of pass-
ports and documents of identification issued by its authorities all the pre-
toction conferred upon citizens of a belligerent nation by the well-known rales
of International law. and particularly the Convention of Geneva, with respect
to Priseners of War.
My Government cannot admit that the Government of Germany may assume the
qualification of such documents and pass upon RSE 11 whether or not its yes-
cossers obtained then legitimately or illegitimately, in order to attribute
or deay to them, as the case may be, Cesta Rican untionality and the cor-
responding humanitarian treatment. the recognize this preregative would be to
leave (eur) nationals expesed to the eruelties and arbitrary actions of the
agents of the States which hold them as priseners or interness, on the pre-
text that the documentation submitted does net merit credence as establishing
the nationality which they claim. And this is impossible.
44
-2-
Regraded Unclassified
My Gevernment begs Your Excellency to be se good as to entreat Switser-
load, which represents its interests in Germany and the territories occupied
by German forces, to bring to the attention of the German Gevernment its
mest energetic protest against the conduct displayed in this regard by the
German efficials: against the qualification of the Cesta Rican decuments
of identification in the possession of numerous civilian priseners and
interness; against the transfer of the same without previous notice to use
known places, in such a manner that neither the Protective Government nor
the Committee of the International Red Cress can watch over the treatment
which is meted out to them; against the inhuman manner in which they (these
priseners) have beer,treated, in violation of (the most) elementary consi-
derations of mercy and the stipulations of agreements solemnly subscribed
to by Germany. For example, this Ministry has private information that in
the case of Dr. don Jerge Cerdere Arias the prisener vas subjected to hard labor
and violent treatment, although the Government of Switzerland and the Com-
mittee of the International Red Cress have not been able to give information
either as to the exact place in which he was or concerning his health or
other living conditions, in seswer to the insistent entreaties for such data
by my Government.
By the same method, my Government demands from the German Government
that it give news of each of the persons under reference, concerning his
whereabeuts and state of health, as well as with regard to all others who,
without having been designated by name or surname in any note, have demanded
that they be considered as Cesta Ricans on the strength of documents issued
by Cesta Rican efficials and subsequently have been removed from the location
in which they were, to be conducted to unknown places. It is further demanded
that they be returned to their demiciles or to the former civilian com-
centration camps in order to accerd them the established protection or to
include them in the exchanges (of priseners) agreed upon for their repatria-
tiem.
In declaring its protest against the irregular procedure of the German
Government, as inhuman and vielating the accepted rules of Civilised Peoples,
and in formulating the demands expesed, my Devernment calls attention to its
(ewn) strict compliance with such rules at all times with respect to the
prisoners and detained civilians who are subjects of Germany. This attitude
has been recognized without reserve by the Delegate of the Committee of the
International Red Cress and the interested parties thouselves.
The Government of Cesta Rica trusts that the Government of Germany will
condeño the justice of its protests and demands and will accord to the docu-
ments issued by its efficials the full value inherent in them, just as vas
accorded in Cesta Rica to the documents drawn up by the German authorities;
and that, consequently, the German Government is future will abstain from
denying their validity 07 otherwise subject them to discussion, for this mat-
ter 10 the exclusive concern of (our) national agents; and it hopes. in the
same way. that it will proceed to return to their demiciles and to the
civilian concentration camps in which they fernerly were kept the priseners
which 1t has sent to unknown places. It particularly invekes asev the fulfil-
ment for the exchange of wilitary priseners and civilian interness which
45
- 3 -
vas approved with respect to the following Cesta Ricans: Jerge Conders
Attas and family; Carles Gambea Redrigues; Redrigo Games Cordere; Rexama
and Asyadee Timeco Lara; Antonia Jinenez Bennefil de Charbenell and her
daughter: Carles Collade Martines; and Alberte Gubierres Benavides, the
last two in Italy and the others in France and Belgium.
Thanking Your Excellency in anticipation of the attention which he
will be pleased to give to the present communication, pray accept the
testimeny of my highest and mest distinguished consideration.
(signed) JULIO ACOSTA
MM.ma
Regraded Unclassified
46
GEK-30
Cairo
This telegram must be
persphrased before being
Undated
communicated to anyone
other than a Government
Rec'd August 16, 1944
Agency. (RESTRICTED)
11:00 a.m.
Secretary of State,
Washington.
GREEK
252
I am advised that the British Embassy recently addressed 8. note
to the Greek Prime Minister in which after referring to former
Prime Minister Tsouderos' endorsement of the United Nations declara-
tion of December 1944 with regard to the return of refugees
( Reference Embassy's Greek 152, December 30, 7 p.m.) authorization
in principle was sought for the reentry into Greece immediately
following liberation (1.0. upon entry of AML) of all British nationals
formerly domicileo in Greece who have signified to the British
Embassy e desire to return to Greece and of whom a list is to be
submitted to the Greek Government in due course. The British Embassy
states this list will include representatives of all British business,
philanthropic and similar interests towards Greece which are being
convassed by various British Government departments.
(Repeated to Murphy as No. 9).
Mr. Papandreou is said to have replied confirming Tschouderos'
declaration, assuring Embassy that British nationals would be among
first refugees permitted to return to Greece end adding hope that
list when presented would not contain names of undesirables.
I suggest that the Department may wish to consider urgently
some similar approach to Greek Government and compilation of cor-
responding American list.
SHANTZ
WSB
Regraded Unclassified.
47
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, London
TO:
Secretary of State, Washington
DATE:
August 16, 1944
NUMBER:
6601
SECRET
Reference is made herewith to the July 14 cable No. 5529 from the
Department.
Foreign Offices reply to note from Embassy conveying WRB's objections
to alleged contradictions in British policy with respect to escape of refugees
from the Balkans to Italy, is being forwarded via airmail by the Embassy.
Fact that refugees must not be discouraged from escaping to Italy is
reiterated by Foreign Office and it regrets that intention of conditions under
which Ackermann was appointed to Italy should have been misconstrued by the
War Refugee Board.
However, the Foreign Office is in agreement with military authorities
that influx of refugees into Italy should not increase to an extent that addit-
ional burden would be placed on military in respect of operation of camps for
refugees in North Africa and the Middle East, not to overtax supply and trans-
port in Italy. Attention is called to fact that Combined Chiefs of Staff had
already been informed by Supreme Allied Commander Mediterranean that unless ade-
quate assistance from UNRRA were forthcoming there could be no expansion of
existing facilities.
In addition Foreign Office explains that there was no intention of
subordinating Ackermann to Sub Commission Displaced Persons or to restrict his
activities to investigation only, and that in this connection conditions men-
tioned were rather to ensure that before he might undertake any negotiations
with enemy aliens he would consult other organizations concerned and to ensure
his cooperation with other bodies dealing with refugees.
WINANT
DCR:EBH
Regraded Unclassified
48
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, London
TO:
Secretary of State, Washington
DATED:
August 16, 1944
NUMBER:
6606
CONFIDENTIAL
Answering certain remarks of Czechoslovak and Polish delegates at
a plenary session of IGC August 15, the director requested the press not to
report him. It had been suggested by the Polish delegate that the IGC
extend assistance to persecuted people in countries of persecution prior to
their escape to countries of safety and the failure of attempt to rescue in-
mates of the Vittel camp holding Latin American passports was deplored by
both delegates.
It was emphatically asserted by the director that aid was being
given to persons in countries of persecution but that he could not discuss
the point more fully because of the clandestine means. Concerning the Vittel
question he said that Latin American Governments were requested to condone
irregular issuance of passports to refugees and to make representations to
the German Government on their behalf, that practically all had done so but
without success. He pointed out however, that some persons holding such pass-
ports had been exchanged for detained Germans and that efforts to enlarge this
means of resque were being made.
WINANT
DCR:VAG
8/19/44
Regraded Unclassified
MAE-221
London
49
This telegram must be
paraphrased before being
Dated August 16, 1944
communicated to anyone
other than a Government
Rec'd 9:56 p.m.
agency. (SECRET - o )
Secretary of State,
Washington.
US URGENT
6608, August 16, 8 p.m.
FOR WAR REFUGEE BOARD FROM DUBOIS
SECTION ONE: The exact text of a joint declaration which has
been agreed upon by the British Government is contained in message No.
6609 immediately following this message. (Refer your 6408 of August
12 relating to the offer concerning emigration and treatment of Jews
communicated by Hungarian Government to the United States and British
Governments.) This joint statement has been agreed upon here and will
be released over the BBC on midnight Thursday, August 17.
SECTION TWO: This declaration was agreed upon after consul-
tation between Ambassador Winant and Foreign Minister Eden and after
considerable discussion with the Foreign Office. It has been approved
by the British War Cabinet.
SECTION THREE: The following change was made in the joint
declaration suggested in your 6408. The words "have accepted the offer
of the Hungarian Government to the release of Jews and will make arrange-
ments for the cafe of such Jews" was substituted for the words "will
make arrangements for the care of all Jews". The purpose of this
substitution was to meet the British objection to stating that the two
Governments were prepared to receive all Jews as distinguished from the
Jews referred to in the Hungarian offer. It is our feeling that the
language which we have agreed upon as a substitute, while meeting the
British objection, at the same time both to the world and to the The
garian Government will be substantially as effective as the language
suggested in your 6408. This is particularly true with respect to its
effect on the Hungarian Government in light of the fact that the message
which has already been delivered to Intercross by the United States
Government is worded in terms of receiving all Jews. If it is felt that
in light of the fact that the note which the United States Government
delivered to Intercross contained the words "all Jews" these words should
therefore be included in any public announcement made by the United States
Government. This point could be taken care of by the United States
Government at the same time that it releases the text of the joint de-
claration releasing the text of the note which the United States Govern-
ment delivered to Intercross.
Regraded Unclassified
50
-2- #6608, August 16, 8 p.m. from London.
SECTION FOUR: Further details concerning the discussions with
the British will be furnished to you by Dubois upon his return to
Washington.
SECTION FIVE: The British Government will convey the text of
this joint declaration to Intercross and also convey the text to
Portugal, Spain, Sweden, Switzerland and Turkey.
SECTION SIX: Please acknowledge at once the receipt of this
message and the immediately following message.
WINANT
WMB NPL
Regraded Unclassified
51
GEK-105
PLAIN
London
Dated
August 16, 1944
Ree'd
2:45 p.m.
Secretary of State,
Washington.
US URGENT
6609, Sixteenth.
CONFIDENTIAL FOR THE WAR REFUGEE BOARD FROM
DUBOIS.
The following is the exact text of the joint
declaration agreed upon by the British Government:
Intereross has communicated to the Governments
of the United Kingdom and the United States an offer of
the Hungarian Government regarding the emigration and
treatment of Jews. Because of the desperate plight of
the Jews in Hungary and the overwhelming humanitarian
considerations involved the two governments are informing
the Government of Hungary through Intercross that,
despite the heavy difficulties and responsibilities
involved, they have accepted the offer of the Hungarian
Government for the release of Jews and will make
arrangments for the care of such Jews leaving Hungary
who reach neutral or United Nations territory, and also
that they will find temporary havens of refuge where
such people may live in safety. Notification of these
assurances is being given to the governments of neutral
countries who are being requested to permit the entry
of Jews who reach their frontiers from Hungary. The
Governments of the United Kingdom and the United States
emphasize that, in accepting the offer which has been
made, they do not in any way condone the action of the
Hungarian Government in foreing the emigration of Jews
as an alternative to persecution and death.
WINANT
EMB
Regraded Unclassified
52
PLAIN
KEM-191
London
Dated August 16, 1944
Rec'd 9:08 p.m.
Secretary of State,
Washington.
6612, Sixteenth.
Fourth Plenary Session Inter-Governmental Committee on Refugees
net 11 a.m. yesterday. Delegates of 36 countries were present as well as
representatives of War Refuges Board, Intercross, UNRRA, SHAEF and ILO.
Also large attendance as observers of representatives of private and volun-
tary organizations, Jewish agencies, et cetera. Press and public were
present on invitation and today's papers give extensive coverage of first
day's proceedings. All important press reports will be airmailed later.
Session was opened by Lord Winterton, Chairman of Executive Committee, and
proceeded immediately to election of Sub-Committee on Nominations consisting
of representatives of Great Britain, Russia, South Africa, Belgium, Greece,
Chile, Egypt, Colombia and India. This Sub-Committee appointed British
representative as its chairman and quickly reported following nominations:
for Chairman of Plenary Session Australian delegate; for Vice-Chairman
French delegate; for Deputy Vice-Chairman delegate of Luxembourg. These
nominations unanimously approved by Committee. Chairman is Bruce, Australian
High Commissioner in London; Vice-Chairman de Jean, French delegate to
Allied Governments in London.
Chairman then suggested and Committee unanimously approved election
of Sub-Committee to examine draft rules and regulations and to report its
recommendations to Plenary Committee: representatives of United State,
France, Argentina, New Zealand, Eire, Sweden, Venesuela, Norway and Poland.
Sir Rebert Emerson, Director of Committee, then rendered his re-
port which was largely an explanatory comment on his written report previously
circulated to member governments (enclosed with desputch No. 17213 August 1).
He touched on relations with UNRRA and pointed out that IOC's functions will
include relocation of displaced persons long after UNRRA may have ceased to
Said IOC hoped to place in necessary countries its own representatives who
will be nationals of the country in which stationed and whose functions will
incluse general liaison work between IGC and government of country to which
assigned. with regard to problem of Hungarian Jews, he regretted being
unable to report on present situation in detail but said Horthy offer was
being actively pursued and that he had high hope that IOC would be able to
render valuable help in this connection.
Chairman then invited delegates to express opinions. Delegate of
India, acting under instructions of Indian Government, proposed that mandats
of IGC be extended to cover persons in Japanese occupied areas and refugees
from Japanese oppression. Mexican delegate pointed out that 14 of 36 member
Regraded Unclassified
53
-2-$6612, August 16, from London.
countries spoke Spenish and proposed that for the sale of uniformity, par-
ticularly with respect to publicity, Committee should issue official Spanish
version of reports and other important material. Also remarked that he
wished to see more help extended to Spanish Republican refugees and likewise
urged acceptance of Horthy offer. Finally recomended close contact between
IOC and free novements in occupied countries since latter had means and
channels to assist escape of oppressed persons.
Egyptian delegate recommended urging individual governments to commit
themselves to receive back refugees of their nationality and to guarantee
them full civil rights. Polish delegate urged that IOC extend assistance
to persecuted people in countries of persecution before their escape to
countries of safety. Also deplored failure to attempt to rescue inmates
of Vittel camp holding Latin America passports. Delegates of Czechoslovakia
supported remarks of Polish delegate on Vittel question.
Replying to these remarks Director stated in substance (1) ICC is
responsible for assisting refugees from Europe now in India and will assist
them. But problem of statelessness has not arisen in Orient and function of
assisting persons within Japanese occupied territory is one of relief rather
than relocation and thus belongs more properly to UNRRA than to IGC particu-
larly since UNRRA has Far Eastern division. (2) Executive Committee will
consider proposal for official Spanish translations. IGC is, in fact, assis-
ting Spanish Republican refugees to extent of its ability. (3) IOC strongly
agrees that it should do all it can to urge responsible governments to bring
about conditions within their territories which would enable refugees of
their
enjoy full civil rights therein.
(4) His raply to renarks of Polish and Csechoslovak delegates will be
covered in separate tolagram.
Delegate of Dominican Republic requested Director to inform meeting
of refugee work done by Dominican Government. Director briefly pointed out
that Dominican Republic was one of first and most liberal in response to
appeals to assist refugees but added that laok of time did not permit him
to go into detail.
Plenary Session then adjourned until morning of August 17.
Sub-Committee on Rules net afternoon August 15 and unanimously
adopted draft and finance regulations with only a few minor textual changes
in interests of clarity. Also unanimously agreed that furnishing of Spanish
version of reports should be handled as executive natter between Executive
Committee and any interested member government; Director undertook to ass
that official Spanish version would be made of any material specially No-
quested by any member.
Sub-Committee on Rules then adjourned after appointing its Chairman,
Polish Ambassador, to draw up report of its recommendations for submission
to Plenary Session. Delegates and their associates were entertained by IGC
at reception yesterday evening and will attend luncheon today given by
Aritish Foreign Minister.
PLEASE INFORM WAR REFUGEE BOARD.
WINANT
Regraded Unclassified
54
Part-au-Prince, Haiti, August 16, 1944
SECRET
NO. 159
Subject: Transmitting Text of Instructions Issued
Regraded Unclassified
by Haitian Government to Legatien in Born
in regard to Persons Naturalized Abread.
The Henerable
The Secretary of State,
Washington, D. c.
Sir:
I have the hener to invite the Department's
attention to my telegram No. 273 of August 16, 3:00 p.m.,
sent in response to the Department's tolegram No. 319 of August
10,,7:00 p.m., 1944, on the subject of instructions to be
issued by the Haitian Government to its Legation in Born, in re-
gard (1) to persens naturalised abread under the Haitian law of
May 29, 1920, who were unable to comply with the Decree-Law of Feb-
ruary 4, 1942, requiring these persens to return to Huiti before
August 5th of that year, and (2) to state that the Haitian Government
dees not question the validity of decuments issued in its IMAINE to per-
sens subject to enemy persecution until such persens reach places of
safety.
AS I reported in my despatch No. 133 of August 2, 1944, the Hai-
tian Government on July 29th issued statements supperting the Depart-
ment's request. The substance of these statements was ferwarded to
the Haitian Legation at Bern en July 31st with directions to inform
the Swime Federal authorities. The text of the telegram sent by the
Haitian Fereign Office. A copy and translation of this message are
enclesed herewith.
In respense to my inquiry as to whether the Council of Ministers
had approved these two statements, the Minister for Fereign Affairs
infermed me orally that this had net been dene, as President Lescet
himself had given the necessary directions, indicating thereby that
his authority was sufficient. I have no reason to deubt the socuracy
of this infermation and suggest that it be se accepted by the
Department.
Respectfully yours,
Orme Wilson
Enclesures:
1/ Cablegram sent by
151317 (leverns
July S1, 1944. Born,
2/ Translation of No. 1 supra
File: 711
Of : mak
To the Department in eriginal and hectegraph.
55
Enclosure No. 2 to Despatch No. 159 of August 16, 1944, from
The Embassy at Part-au-Prince.
Regraded Unclassified
TRANSLATION
HAITIAN LEGATION BRN
Please request the Swins Federal Gevernment to
present to the German Gevermment the fellowing dec-
laration of the Haitian Government:
"In asmuch as a certain number of indivi-
duals of the Jewish race naturalised as
Haitians abread in pursuance of the. Decree-
Law of May 29, 1939,wore living in `terri-
teries centralled by Cermany and Italy/
that they have been detained there om-
tinususly for reasens' of ferce majeure
since the declaration of war by the Repub-
lic of Haiti until this date, the Haitian
Geverment declares: that the persons in
the abeve-mentiened categery have been up-
able to comply with the Decree-Law of Feb-
ruary 4, 1942, enjeining, under penalty of
the less of Haitian nationality, all these
who had acquired Haitian naturalization
abread to return to Haiti before August 5,
1942. Consequently, it is hereby made
known to when it may cencern that the said
persons are net affected by the Decree-I.rw
of February 4, 1942".
I also ask you not to question at present the va-
lidity of Haitian passports hold by persons who are
new in eccupied territeries and who could be the eb-
ject of persecution by the enemy until such persens
arrive in a place of safety and to inform the Fed-
eral Department of the instructions received by you
in this connection.
GERARD LESCOT
Oils mak
56
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, Port au Prince
TO:
Secretary of State, Washington.
DATED:
August 16, 1944
NUMBER: 273
CONFIDENTIAL
The instructions mentioned in Department's cable of August
10, no. 319, were transmitted by the Haitian Government on July 31
to Bern. We are forwarding text by airmail. It is stated by the
Foreign Office that this action was taken with the President's
approval of the Council of Ministers was not secured. I have no
reason to doubt that sufficient authority is constituted therein.
WILSON
Regraded Unclassified
57
CH
Distribution of
SECRET "W"
true reading only by
special arrangement.
(SECRET W)
August 16, 1944
5 p.m.
AMPOLAD,
CASERTA (ITALY).
39
The following for Ackermann is WRB 44.
McClelland, the War Refugee Board representative in
Bern, suggests that plans for the assistance of refugees
in German-occupied Italy would be facilitated if the
Board were to express to appropriate Italian officials
in Rome its approval of and interest in any rescue
operations on behalf of Jewish refugees in German-occupied
Italy which might be undertaken by the Italian resistance
movement insofar as such operations are consistent with
the satisfactory carrying out of the regular military
program.
0
If there is no objection from competent Allied mili-
tary authorities, please take this matter up with the
appropriate Italian officials in Rome, and report to the
Board the action taken.
HULL
(GLW)
WRB:MMV:KG
SE
WE
S/CR
8/16/44
Regraded Unclassified
58
CABLE FROM WAR REFUGEE BOARD TO ACKERMANN, AMERICAN CONSULATE GENERAL,
NAPLES, ITALY.
McClelland, the War Refugee Board representative in Bern, suggests
that plans for the assistance of refugees in German-occupied Italy
would be facilitated if the Board were to express to appropriate Italian
officials in Rome its approval of and interest in any rescue operations
on behalf of Jewish refugees in German-occupied Italy which might be
undertaken by the Italian resistance movement insofar as such operations
are consistent with the satisfactory carrying out of the regular
military program.
If there is no objection from competent Allied military authorities,
please take this matter up with the appropriate Italian officials in Romels
and report to the Board the action taken.
THIS IS WRB CABLE NO. 44
10:00 a.m.
August 16, 1944
MJMarks:JQPehlesdg 8/15/44
Regraded Unclassified
59
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
The American Delegation, Rome
TO:
The Secretary of State, Washington
DATE:
August 16, 1944
NUMBER:
194
CONFIDENTIAL
Reference is made herewith to the Department's
August 4 cable No. 36.
Given below is the substance of Sforza's reply to
Mertenke of the Emergency Committee to save Europe's
Jewish People:
It pleases me to know that the contribution which
I made to the first conference to save Jews is not for-
gotten. This time I am happy to send facts to you instead
of plans and wishes. Here are the facts: Not only has
my friend, Prime Minister Bonomi, abolished all of the
anti-Jewish laws but in addition together we have
warmly recommended to all Italians that they show their
Jewish compatriots how hateful and despicable they consider
discriminations of religious and racial nature to be.
KIRK
DCR:EBH 8/19/44
Regraded Unclassified
60
BR-313
PLAIN
Casablanca
Dated August 16, 1944
Rec'd 8:20 a.m., 19th
Secretary of State
Washington
228, Sixteenth
CROWLEY AND LEHMAN FROM UNRRA
Number 7.
150 additional refugees arrived today.
RUSSELL
CSB
Regraded Unclassified
61
CABLE TO THE AMERICAN CONSULATE GENERAL, JERUSALEM, FROM WAR REFUGEE
BOARD
Please deliver the following message to Heshel Frunkin--
Goldie Myerson, 115 Allenby, Tel-Aviv, Palestine, from Israel Mereminski:
"Confidential yours July 29 discussed fully WRB who submitting
first part your important war information competent authorities.
Suggest your end negotiate directly appropriate Polish groups
simultaneously destruction gaschambers, crematories, etc.
Cable details amount necessary and manner transmission rescue thou-
sands mentioned LVOV letter. WRB dealing energetically four Redcross
points. No indications here that Hungarian deportation not stopped.
WRB doing everything possible deal with Hungarian situation includ-
ing question children. American Jewish organizations constantly
activizing Hungarian Jews here lines similar your suggestions STOP
Contacting various organizations concerning Polish Government broad-
casts from here appealing Poles save Jews last amoment and provide
Polish Embassy here with lists Poles active resoue work demanded
by American public opinion Stop Believe it will work. All concerned
interested you provide me immediately information plans detailed
suggestions for immediately increasing number small boats possible
mobilize Palestine neighboring countries islands etc. All ready
help this most vital urgent problem cable same way without delay."
10:00 a.m.
August 16, 1944
FHodeldjth 8/14/44
Regraded Unclassified
62
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Consulate General, Jerusalem
TO:
Secretary of State, Washington
DATE:
August 16, 1944
NUMBER: 115
SECRET
The message given below is for WRB for the attention
of Leon Kubowitski, World Jewish Congress, from Mrs.
Gertrude Van Tyn:
This is to advise you that by the end of August
all the information which I have will be in the hands
of the joint distribution committee in New York. I
suggest that JDC be consulted concerning all these
questions in light of the great care that must be taken
as to how such information is used. The wrong kind of
publicity might have very serious consequenses for Jews
who are still in Belsenberg.
The foregoing refers to the August 2 cable No. 132
from the Department.
PINKERTON
DCR:EBH 8/19/44
Regraded Unclassified
63
NO. 1327
THE FOREIGN SERVICE
OF THE
UNITED STATES OF AMERICA
RESTRICTED
AMERICAN CONSULATE GENERAL
Jerusalem. Palestine,
August 16. 1944.
SUBJECT: Information Regarding Belsen-Bergen
Concentration Camp.
THE HONORABLE
THE SECRETARY OF STATE,
WASHINGTON.
SIR:
I have the honor to refer to the Department's
telegram No. 132 of August 2. 7 P.M., quoting a
message from Mr. Leen KUBOWIT2KI of the World Jewish
Congress through the Var Refuges Beard for Mrs.
Gertrude TAB Tyn and Mr. Jacob van BLITZ asking for
details of Belsen-Bergen Camp. My telegram No. 113
of August 14, 6 P.M. gave Mr. van Blits' reply. Mrs.
van Tyn gave her information to Mr. Harry VITNLES
who is preceeding to the United States on business
for the American Jewish Joint Distribution Committee
of New York. She asked me to telegraph suggesting
that Mr. Kubovitaki should consult the Joint Distri-
butien Committee for information on his questions
because of the great care that has to be taken in
use of such material. This was done in my tolegram
No. 116 of August 16. 3 P.M.
I have new received from Mr. Viteles a copy of
Mres vas Tyn's repert sad, as it may be of interest
to the Department and to the War Refugee Board, a
copy is enclosed.
Respectfully yours,
L.C. Pinkerton,
American Censul General.
Maclesure:
Copy of Report.
File Be. 849
LCP/Z oh
Regraded Unclassified
64
Emclesure to Despatch No. 1327, dated August 16, 1944,
Regraded Unclassified
from the American Consulate General, Jerusalem, Palestine,
on the subject: "Information Regarding Belsen-Bergen
Concentration Camp."
COPY
Information regarding Bergen-Balsen on June 28, 1944.
In Bergen-Belsen were three Jewish camps; the se-
called "Albala-Lager" where I had been interned, the
"Schneebaum-Lager", and the Barack 10 complex. (The
camp;) Barack 10 was not always in use; 1% eften served
as quarantine, and I was there first for 4 vecks after
our arrival and then again for about 5 weeks when the
Palestine candidates were segregated from the ethers;
when we left there were about 300 to 400 Jews in Barack
10. but I have no reliable information about them. In
the Schoobaun-Lager were about 1000 Jews, nestly Polos
with either South-American passports, and possibly and/
or Palestine papers. This information is not reliable.
At the above date there were certainly about 250 Jews
who had arrived from Yugeslavia and who held other
papers; they were in a very bad condition. All the
data given below refer to the "Albala-Cawp" only.
Inmates with Dateh nationality
1380
Stateles
1320
Deuble nationality (Dutch/Maglish)
600
Paraguay
180
Maglish
270
Equador
150
Headures
80
Maiti, San Salvador. Pers, etc
50
4030
plus 70 Greeks
About 1200 of these hold Palestine Papers: there vas
a small group whose Arian descent had not been defi-
nitely cotablished, a greep who hold the se-called
120.000 stamp (either bought or given because of good
international relations) people commented with the
diamond industry (about 170 insl. venes and children).
The 270 "Muglish" were Jews from North-Africa, who had
been interned in Italy and who had nov been evacuated
to B. 3.; all these are, of course, included in the
above natiomality-statistios, and are not additional.
The lists saked for cannot be given; I could, of
course, name a number of people who dies is B.B. but
the information would be incomulate, and would serve
65
no useful purpose; the nortality particularly amenget
old people was high.
The feed was not badly cooked. although very mose-
tensus. From January till about the ond of April the
war meal consisted every day of "Kehlrusben-soup".
After that it was about twice weekly spinach-soup:
sometimes thick gruel; semetimes other vegatable-sump,
always with very little or no neat. Practically no fat.
The rations were daily:
350 granns bread of deubtful quality
it liter soup midday meal daily (in reality
sae get about 1 1/10th)
weekly 60 grame margarine; about twice = week
at night this gruel soup; a soupspeenful of jam,
quark or herring-salade 42 the days when
there was no soup in the ovening.
There was a deficiency of about 1000 caleries daily:
this vas particularly serious because of the leng
working days and the very heavy work which particularly
the younger mea had to perform. (About 1000 people
worked in the "shees" non and wases; 1.0. they had to
tura old shees into their original leather or textile
substance; but the non had also to lead and unlead the
incoming freightears with these shees; there was a great
deal of brutality; but although beatings ware the rule
of the day there was - with cae single exception - no
ill-treatment which resulted in injury. About another
1000 people worked is the textile-industry the rest had
se-called is or around the camp;
this was eften very heavy work; felling of trees; clean-
ing of latrines; cleaning of the charp generally ets. etc.
The samitary situation was bad; the latrines used by
the "shee" sad textile-werkers indescribable M to do-
sign and condition. Dysentery was raspent. The
hespital-arrangements were very peer; there were prac-
tically no drugs or medicines left, sad only in very
few cases 414 the Germans supply such things as dagesan
for serious cases of pneumenia etc. etc. For some
months there were private stores available, but these
had been exhausted. As drugs etc. were confiscated from
private parsols there is 20 nease of helping unless the
Red Cress would get permission to supply the mest necessary
drugs. Se far neither delegates from the Inter-
national or the German Red Cross had been visiting the
Regraded Unclassified
66
camp. No cellective feed or other parcels can be TO-
coived; only a reasonably quantity of individually as
dressed small parcels, sent as ordinary pareel (neither
registered nor express nor with enclosed receipt-ferm)
will probably be delivered. I personally used to re-
ceive such a pareel from Amsterdan regularly sace a
week; but as the German neither have (nor are probably
villing to create) facilities for handling a large me-
ber of parcels there is a danger that the receiving of
parcels may be althgether suspended if too ssay are
sent simultaneously. (A pareel should centain marga-
rine, cheese, hard biscuits, checelate, quaker eats,
vitamines in tablet form and cigarettes). The latter
can be exchanged abainst bread and every conceivable
article. Also milk-pewder, and tin of sardines.)
Cerrect address: Aufenthaltslager Bergen-Belsen
near Celle (Hannever)
There vas an eld-age home for people above 65
who did net need to work, and also an invalid home
where people who had been seriously ill or who were
permanently disabled stayed without working. Admin-
sion to hespital, invalid or old-age home was diffi-
cult, sad often people with high temperatures had to
work.
As far as I knew no deportations to Peland teek
place from Bergen-Belsen; small groups of Jews (f.1.
suddenly a group of about 20 Hungarian Jews) were
sometimes sent away with unknova destination, possibly
Peland. Groups of Jown holding Spenish, Ruglish, Tur-
kish papers ete. had been sent away. it was believed
either repatriated or to Vitelles or Laufen (both
Internierungelager under Red Cress auspices). About
350 Jews who had been sent to B.B. from Vesterberk
(instend of to their destination Theresianstad) in
September 43 were eventually sent to Theresienstad
from B.B. beginning of February 1944; news from some
of them had been received to the effect that they had
arrived there. (This included old Pref. Magnus, Dr.
Flatow and his wife). Our first exchange transport
consisted 221 Jaws from B.B. (99 Dateh, 77 stateless
fernerly Germans, 45 sundry nationalities); to these
were added 60 Jews from Vitelles.
Regraded Unclassified
67
Sundry Information. In Westerbork were at the
beginning of June 1944 still about 2000 people, 1.0.
700 "Barneveld" (a group privileged by Dutch autheri-
ties) about 350 baptised Jews (non Cathelics) and
about 1000 with special privileges, either resulting
from their work for Westerberk or special se-called
"emigration-greups". There may have been as many as
2500 altogether they were supposed to eventually "
to Theresienstad; I de not knew whether or net W'berk
has since been liquidated.
From the 2500 holder of Palestine Certificates
on March 16th 1944 550 were then in Bergen-Belsen;
710 had been sent to Peland mest prier to their
receiving certificates; 675 were in hiding. and the
rest belonged to "Barnevald" or was otherwise still
in Wherk or Ansterdam. (Since then more are in B.B.
and less in wobork)
(sga) Gertrude van Tym
Haifa - August 12, 1944.
Regraded Unclassified
68
- 4 -
Information about Dates Jevry
Regraded
There vere 140,000 Jews in Helland at the begin-
ning of the war. (incl. 26,000 nen-Dutch Jews).
Deported to Peland (including all erphanages, old-age
homes. hospitals. lunatic-asylum
Apeldeers, and all Jeve from the
Fught-camp excepting a few working
in Fught for Philips)
110,000
Bergen-Belsen
4,000
Westerberk
2,500
Theresienstad
2,000
In biding (estimated)
(between 15-17000)
15,000
Married to Christians etc. (estinuted) deceased
6,500
140,000
-----
(The number of Jews who are free in Amsterdam-there
are none in the Provinces-is negligible)
The "star" of which I enclose one, had to be were
as from May 1942; the deportations started July 15th,
1942. Up to Recember 31st 1942 40,000 Jews had been
deported.
WIHRINGEN: ON March 20th 1941 210 pupils (boys and
girls with the Jewish manager) were brought to Ansterdam;
about 60 pupils and 10 people from the staff were allowed
to remain in order to finish the harvesting of that year's
crops; they were allowed to remain until August let 1941
when the Workderp was finally liquidated.
About 60 of the pupils were sent to Mauthason:
#
100 were deported to Poland
#
50 are still in Westerbork and
Bergen-Belson
#
60 are in hiding.
The Dutch authorities paid an indemnity for the
property they took over; (although it were the Germans
who ordered the liquidation;) this money was used to
69
+
keep two "Hemes" in Amsterdam for the remaining pupils
until they too were finally dispersed in the great
rassias on May 26th and June 20th 1943. The equipment
of the carpentershop and the smithy and metalshop was
used in Jewish training schools in Amsterdam, and
finally brought to Westerberk.
VININA.
The fellowing data were given to no in Vienna ea
my way through to Constantineple by the assistance of
Dr. Leewenhers who sould not come personally.
date July 1st 1944: VIENNA Free Jews
180
In hiding
2000
"Versippts" (inter-
marriage etc.)
698000
Sent to Theresienstad
1500 (of when
3800 still
there)
Sent to Peland
4800
The rest (there were in 1938 210,000) emigrated, or died.
9000 Hungarian Jews had come through Vienna on
their way to Peland; 41000 were still expected. (We
sav two transport of 1000 each, one in Vienna and on
the way in Hungary) 310,000 Jews in Budapest had not
yet been interfered with.
(sgd) Certrude van Yya
Haifa - August 13, 1944.
Regraded Unclassified
70
CABLE TO NORWEB, LISBON, FOR DEXTER FROM WAR REFUGEE BOARD
Please deliver the following message to Dr. Joseph
Schwartz, 242 Rua Aurea, Lisbon, from Mr. Leavitt of the
American Jewish Joint Distribution Committee:
"Remitted $25,000 Saly Mayer for Shanghai." If
THIS IS WRB CABLE TO LISBON NO. 77
4:30 p.m.
August 16, 1944
FHodel:jth
8/16/44
Regraded Unclassified
71
AIRGRAM
CONFIDENTIAL
FROM: American Embassy,
Madrid, Spain
DATE: August 16, 1944
REC'D: August 29, 1944
Secretary of State,
Washington, D. C.
A-387, August 16, 1944, 4 p.m.
4 group of 410 French refugees departed from
Spain for North Africa via Gibraltar on August 14,
bringing to approximately 2,400 the total number
of such refugees evacuated from Spain since begin-
ning of year. It is estimated that not more than
200 French refugees remain in Spain as of this
date.
BUTTEN.ORTH
Copies to Algiers.
M/B/jk
File No. 905
Miss Chauncey (for the Sec'y), Abrahamson, Akzin, Cohn, DuBois,
Drury, Friedman, Gaston, Hodel, Laughlin, Lesser, Mannon, Marks,
McCormack, Pehle, Sargoy, Standish, Weinstein, Cable Control Files
Regraded Unclassified
72
ATRORAM
FROM: American Embassy,
Madrid, Spain.
CONFIDENTIAL
Date: August 16, 1944.
Rec'd: August 29, 3 p.m.
Secretary of State,
Washington, D. C.
A-388, August 16, 1944, 4 p.m.
Reference Department's telegram 2185, August 5,
5 p.m. from War Refuges Board.
Total part charges insurred in connection with
embarkation of stateless refugees at Cadis on June 21
amounted to only 4,075.70 pasetas, which amount USCC
has been requested to pay to consignee. No other
funds have been advanced from original 100,000 pasetas
authorised in the Department's telegram 1652 (USCCO
1941), June 7, 1 P. m.
BUTTERWORTH
Copy for Algiers for Saxon
Copy for USCC, Madrid.
MIA/Jk
Regraded Unclassified
73
CABLE FROM WAR REFUGEE BOARD TO MENISTER JOHNSON, STOCKHOLM, SWEDEN.
Please refer to your 2688 of July 20 doncerning BARDALAND
claim.
The executive Director, War Refugee Board, has discussed this
matter with Swedish Minister here who is communicating with Swedish
Government for more information. Will advise you of developments.
THIS IS WRB CABLE TO STOCKHOLM No. 74
9:00 a.m.
August 16, 1944
JWPehle:dg 8/15/44
Regraded Unclassified
74
BAS
August 16, 1944
Distribution of true
reading only by special
4 p.m.
arrangement. (SECRET W)
AMLEGATION
Stockholm
1633
The cable below is WRB 74.
Please refer to your 2688 of July 20 concerning
BARDALAND claim.
The executive Director, War Refugee Board, has
discussed this matter with Swedish Minister here who
is communicating with Swedish Government for more
information. Will advise you of developments.
HULL
(GLW)
WRB:MMV:KG
SzCR
NOE
8/16/44
Regraded Unclassified
75
CABLE TO MINISTER JOHNSON AND OLSEN, STOCKHOLM, SWEDEN
Please transmit the following message to Wilhelm Wolbe, 11 Olefagotten,
Stockholm, Sweden,
QUOTE Reported 7000 Lithuanian Jews evacuated from Kaunas to East
Prussian border for slave labor fearful extermination will follow. We
ready meet every obligation effect their rescue. Please utilize every
appropriate method available save maximum possible number.
Group of 1200 including Rabbis religious leaders evacuated from Hungary
through Slovakia now reported in concentration camp at Belsen Bergen near
Hanover. Danger imminent deportation to death camps. Doing everything to
effect their rescue. Vital you immediately (1) request Swedish government
to grant Swedish passports or visas to save this group or (2) intervene
wedish Government and King direct immediate appeal to Admiral Horthy to
demand repabriation of these 1200. If repatriation is granted, request
that their transportation to Hungary be accomplished in condidtions insuring
survival and that on their trip they be accompanied by representative of
Intercross, Swedish Redcross or Hungarian Redcross to insure such conditions.
Also that upon return to Hungary, they be treated under terms of relaxed
regime pending emigration. Enlistreooperation of Olsen and Rabbi Ehrenpreis.
The lives of this group dependent on your action. Vaad Hahatzala Emergency
Committee. UNQUOTE
THE FOLLOWING FROM WRB FOR OLSEN.
If you deem it advisable, you may actively support the above requests
to Swedish authorities.
THIS IS WRB CABLE TO STOCKHOLM NO. 75
1:40 p.m.
August 16, 1944
BAkzin:ml 8/15/44
Regraded Unclassified
76
CABLE TO MINISTER HARRISON AT BERN FOR McCLELLAND FROM WAR REFUGEE BOARD
Reference your 5004 of August 4, and Department's 2631 of July 31,
WRB's 104.
Times article based on formal news release issued by Belgian War
Relief Society as result of confusion. Release states clearly Krier and
Clement are in Bern. Article indicates Krier in Bern, but is not (repeat
not) clear as to Clement. It reports, howefer, that the $90,000 is to be
sent to Bern QUOTE to aid Belgians in hiding from the Gestapo or imprisoned
by the Nazis UNQUOTE.
THIS IS WRB BERN CABLE NO. 124
10:00 a.m.
August 16, 1944
LSLesser:tmh 8/15/44
Unclassified
77
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
August 16, 1944
NUMBER:
2816
CONFIDENTIAL
Reference your 5004 of August 4, and Department's
2631 of July 31, WRB'S 104.
Times article based on formal news release issued by
Belgian War Relief Society as result of confusion. Release
states clearly Krier and Clement are in Bern. Article
indicates Krier in Bern, but is not clear as to Clement.
It reports, however, that the $90,000 is to be sent to Bern
QUOTE to aid Belgians in hiding from Gestapo or imprisoned
by the Nazis
UNQUOTE
THIS IS WRB BERN CABLE NO. 124
Regraded Unclassified
78
CABLE FROM WAR REFUGEE BOARD TO MINISTER HARRISON FOR MCCLELLAND,
BERN, SWITZERLAND.
We are requesting Ackermann, the War Refugee Board representative
in Italy to take up with the appropriate Italian officials in Rome
the matter referred to in your 5079 of August 7.
THIS IS WRB BERN CABLE NO. 125
10:00 a.m.
August 16, 1944
MJMarks:ro
8/11/44
Regraded Unclassified
79
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
August 16, 1944
NUMBER: 2817
FOLLOWING FOR McCLELLAND:
We are requesting Ackermann, the War Refugee Board
representative in Italy to take up with the appropriate
Italian officials in Rome the matter referred to in your
5079 of August 7.
THIS IS WRB BERN CABLE NO. 125
Regraded Unclassified
80
CABLE TO MINISTER HARRISON AND McCLELLAND, BERN, SWITZERLAND
Please transmit the following message to International Red Cross at
Geneva, Switzerlands
QUOTE Jewish telegraphic agency reports from Bern that according reliable
letters from Hungary last days of July deportations are continuing at night
in spite of Horthy's promises. Jewish circles here in great anxiety. Please
ascertain facts. Agudas Israel World Organization, Jacob Rosenheim, President,
UNQUOTE
THIS IS WRB CABLE TO BERN NO. 126
10:35 a.m.
August 16, 1944
BAksin:ml 8/16/44
Regraded Unclassified
81
CABLE TO MINISTER HARRISON AND McCLELLAND, bern, SWITZERLAND.
Reference is made to Department's 2737 of August 9, WRB 112.
Department and Board received communciation from IGC substan-
tiating reports of deportations of holders of Latin American docu-
ments from Civilian internment camps subsequent to May 11, with full
details and lists of names. Deportations occured in Vittel on
May 16 and about July 18. The camp commandant informed internees
that transport was to be sent to Belsen-Bergen, which proved false.
The Commandant also stated that neither the recognition of Latin
American documents nor the certificate for exchange to Palestine
would have any validity in th e eyes of the German authorities
unless an exchange either to Palestine or to South America actually
took place.
Please request Swiss Government to transmit to German Foreign
Office this Government's sharpest protest against this flagrant
violation of assurances given by Germany to Switzerland and referred
to in your 4223 of July 3. Also request Swiss Government to demand
on our behalf immediate return of all deportees to civilian internment
camps and the most binding assurances that such deportations will
not occur again. Also request Swiss Government to declare to German
Foreign Office that any deportees not so returned will be considered
by this Government as having been put to death by action of German
authorities contrary to obligation assumed by Germany and referred to
in your 4223.
It is hoped that Swiss Government will not only transmit but
also support the above protests and demands.
In this connection, please make fullest use of argument con-
tained in Department's 2490 of July 21, paragraph 3.
Copy of IGC communication follows by diplomatic mail, but
protest is to be made immediately without awaiting said copy.
THIS IS WRB's BERN CABLE NO. 127.
Repeat to Amembassy, London.
1:40 p.m.
August 16, 1944
BAkzin:ml 8/15/44
Regraded Unclassified
82
CABLE TO MINISTER HARRISON AND MoCLELLAND, BERN, SWITZERLAND.
Please transmit the following message to Isaao Sternbuch, St. Gallen,
Switserlands
QUOTE Reported 7000 Lithuanian Jews evacuated from Kaunas to East Prussian
border for slave labor fearful extermination will follow. We ready meet every
obligation effect their rescue utilise every appropriate method available save
maximum possible number. Contact Intercross urge them send representative
intervene for group.
Concerning 1200 endeavoring secure Palestine certificates for them. Urge
you do likewise. Necessary also you request Intercross and Swies Government
to address appeal to Admiral Horthy to demand repatriation of this group. It
is hoped that their transportation to Hungary would be accomplished in condi-
tions insuring survival and that on their trip they would be accompanied by
representative of Intercross or Hungarian Redoross to insure such conditions.
Also, that upon return to Hungary, they would be treated under terms of re-
laxed regime pending emigration. Have cabled Wolbe Stockholm to make similar
request of Swedish Government. Vaad Hahatzala Emergency Committee. UNQUOTE
The following from WRB for MoClelland:
Please actively support the above requests to Swies authorities
and Intercross. Report developments.
THIS IS WRB CABLE TO BERN NO. 128
1:40 p.m.
August 16, 1944
BAksinsml 8/14/44
Regraded Unclassified
83
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
August 16, 1944
NUMBER:
1955
SECRET
FROM THE WAR REFUGEE BOARD.
In view of increasing difficulties in arranging for the
evacuation of Jews from the Balkans by rail and sea and in view
of the increasingly favorable war outlook, the War Refugee
Board feels that greater emphasis should now be placed on con-
vincing the satellites that it is to their interest to nait
anti-Jewish activities and thereby make unnecessary the evac-
uation of Jews under present difficult and dangerous wartime
conditions. With this in mind Hirschmann, the War Refugee
Board representative in Turkey recently conferred with
Balabanoff, the Bulgarian Minister to Ankara, and requested
among other things, that the Bulgarian authorities take steps
cease persecution of the Jews in Bulgaria and to afford them
protection in that country thus obviating the necessity of in-
voluntary emigration. Balabanoff indicated his view that the
Bulgarian authorities would be favorably disposed to taking such
action.
In his conversation with Hirschmann, Balabanoff appa-
rently indicated that the Bulgarian Government is on excellent
terms with the Soviet Govenment and that Bulgaria would exert
any reasonable effort to please the Soviets. If in your dis-
cretion you consider it desirable to do so, you may wish to
approach the appropriate Soviet officials, informing them of
the foregoing, and suggesting that they may wish to instruct
their Charge d'Affaires in Bulgaria to urge the Bulgarians
to take action of the nature indicated.
For your information, the Russian Embassy in Ankara
has been advised of Hirschmann's talk with Balabanoff.
HULL
Regraded Unclassified
84
CABLE FROM WAR REFUGEE BOARD TO KELLEY FOR HIRSCHMANN, ANKARA, TURKEY.
Please refer your No. 1423 of August 4 (Ankara No. 114) and 1449
of August 8.
Thank you for full report concerning Jabotinsky proposal. As
previously indicated we rely entirely on your judgment concerning proposals
submitted by private organizations. Your cable is further indication
that you are giving full and impartial consideration to all proposals
submitted regardless of organization involved. This is in line with Board's
policy. Substance of your message has been communicated to the Emergency
Committee here.
THIS IS WRB ANKARA CABLE NO. 100
9:00 a.m.
August 16, 1944
JBFriedman:ro
8/15/44
Regraded Unclassified
85
CH
Distribution of
SECRET "W"
true reading only by
special arrangement.
August 16, 1944
(SECRET -W)
8 p.m.
AMEMBASSY,
ANKARA.
708
The following for Hirschmann is WRB 100.
Please refer your No. 1423 of August 4 (Ankara No. 114)
and 1449 of August 8.
Thank you for full report concerning Jabotinsky pro-
posal. As previously indicated we rely entirely on your
judgment concerning proposals submitted by private organiza-
tions. Your cable is further indication that you are
giving full and impartial consideration to all proposals
submitted regardless of organization involved. This is
in line with Board's policy. Substance of your message
has been communicated to the Emergency Committee here.
HULL
(GLW)
WRB:MMV:KG
NE
S/CR
8/16/44
86
CABLE FROM WAR REFUGEE BOARD TO KELLEY FOR HIRSCHMANN, ANKARA, TURKEY.
Regraded Unclassified
Please refer to your No. 1450 of August 8 (Ankara No. 125).
The following cable has been sent to Harriman in this connection:
QUOTE In view of increasing difficulties in arranging for the
evacuation of Jews from the Balkams by rail and sea and in view of the
increasingly favorable war outlook, the War Refugee Board feels that
greater emphasis should now be placed on convincing the satellites that
it is to their interest to ahalt anti-Jewish activities and thereby make
unnecessary the evacuation of Jews under present difficult and dangerous
wartime conditions. With this in mind Hirsohmann, the War Refugee Board
representative in Turkey recently conferred with Balabanoff, the
Bulgarian Minister to Ankara, and requested, among other things, that
the Bulgarian authorities take steps to cease persectuion of the Jews
in Bulgaria and to afford them protection in that country this obviating
the necessity of involuntary emigration. Balabanoff indicated his view
that the Bulgarian authorities would be favorably disposed to taking
such action.
In his conversation with Hirschmann, Balabanoff apparently indicated
that the Bulgarian Government is on excellent terms with the Soviet
Government and that Bulgaria would exert any reasonable effort to please
the Soviets. If in your discretion you consider it desirable to do so,
you may wish to approach the appropriate Soviet officials, informing them
of the foregoing, and suggesting that they may wish to instruct their
Charge d'Affaires in Bulgaria to urge the Bulgarians to take action of the
nautre indicated.
For your information, the Russian Embassy in Ankara has been advised
of Hirschmann's talk with Balabanoff. UNQUOTE
THIS IS WRB ANKARA CABLE NO. 101
10:00 a.m.
August 16, 1944
JBFriedman:MJMarke:ro
8/15/44
87
CH
Distribution of
true reading only by
SECRET "W"
special arrangement.
(SECRET -W)
August 16, 1944
9 p.m.
AMEMBASSY,
ANKARA.
709
The War Refugee Board cable 101 below is for Hirschmann.
The following cable has been sent to Harriman in this
connection:
QUOTE In view of increasing difficulties in arranging
for the evacuation of Jews from the Balkans by rail and sea
and in view of the increasingly favorable war outlook, the War
Refugee Board feels that greater emphasis should now be placed
on convincing the satellites that it is to their interest to
halt anti-Jewish activities and thereby make unnecessary the
evacuation of Jews under present difficult and dangerous war-
time conditions. With this in mind Hirschmann, the War Refugee
Board representative in Turkey recently conferred with Balabanoff,
the Bulgarian Minister to Ankara, and requested, among other
things, that the Bulgarian authorities take steps to cease
persecution of the Jews in Bulgaria and to afford them pro-
tection in that country thus obviating the necessity of involun-
tary emigration. Balabanoff indicated his view that the
Bulgarian authorities would be favorably disposed to taking such
action.
In his conversation with Hirschmann, Balabanoff apparently
indicated that the Bulgarian Government is on excellent terms with
the Soviet Government and that Bulgaria would exert any reasonable
effort to please the Soviets. If in your discretion you consider
it desirable to do so, you may wish to approach the appropriate
Soviet officials, informing them of the foregoing, and suggesting
that they may wish to instruct their Charge d'Affaires in Bulgaria
to urge the Bulgarians to take action of the nature indicated.
For your information, the Russian Embassy in Ankara has
been advised of Hirschmann's talk with Balabanoff. UNQUOTE
HULL
(GLW)
WRB:MMV:KG
NE
SE
EE
S/CR
8/16/44
Regraded Unclassified
88
CORRECTION ON
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Embassy, Moscow
DATED:
August 16, 1944
NUMBER:
1955
SECRET
The telegram No. 1955 was erroneously distributed to
you as No. 1955 from "American Legation, Bern". It should
have been No. 1955 from "American Embassy, Moscow".
Regraded Unclassified
89
CABLE FROM THE WAR REFUGEE BOARD TO AMBASSADOR HARRIMAN, MOSCOW, RUSSIA.
In view of increasing difficulties in arranging for the evacuation
of Jews from the Balkans by rail and sea and in view of the increasingly
favorable war outlook, the War Refugee Board feels that greater emphasis
should now be placed on convincing the satellites that it is to their
interest to halt anti-Jewish activities and thereby make unnecessary
the evacuation of Jews under present difficult and dangerous wartime
conditions. With this.in mind Hirschmann, the War Refugee Board repre-
sentative in Turkey recently conferred with Balabanoff, the Bulgarian
Minister to Ankara, and requested, among other things, that the Bulgarian
authorities take steps to cease persectuion of the Jews in Bulgaria and
to affort them protection in that country thus obviating the necessity
of involuntary emigration. Balabanoff indicated his view that the Bulgarian
authorities would be favorably disposed to taking such action.
In his conversation with Hirwohmann, Balabanoff apparently indicated
that the Bulgarian Government is on excellent terms with the Soviet
Government and that Bulgaria would exert any reasonable effort to please
the Soviets. If in your disoretion you consider it desirable to do 80,
you may wish to approach the appropriate Soviet officials, informing them
of the foregoing, and suggesting that they may wish to instruct their
Charge d'Affaires in Bulgaria to urge the Bulgarians to take action of the
nature indicated.
For your information, the Russian Embassy in Ankara has been advised
of Hirschmann's talk with Balabanoff.
10:00 a.m.
August 16, 1944
JBFriedman:MJMarks:ro
8/15/44
Regraded Unclassified
90
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embassy, Moscow.
TO:
Secretary of State, Washington.
DATEDs August 16, 1944
NUMBER: 3004
CONFIDENTIAL
I am informed by the British Ambassador that he, on the thirteenth
of August, wrote to Vyshinki along lines as follows, in accordance
with instructions received from his Government:
"The American and British Governments were informed on the twenty-
second of July by the International Red Cross Committee that the de-
portation of Jews to German execution camps was being stopped by the
Hungarian Government, and that that Government was willing to permit
the departure of Jews (in certain categories) from Hungary for neutral
territory or for the United States. This offer is believed by the
American and British Governments to be a genuine one, and they feel
that arrangements to take advantage of this development should be
made. At the present time under consideration with the American
Government are the matter of a comunication to the International
Red Cross; also a public statement on the subject."
HARRIMAN.
DCR:LCW 8/17/44
Miss Chauncey (For the See'y), Abrahamson, Cohn, DuBois, Friedman,
Hodel, Laughlin, Lesser, Mann, Mannon, McCormack, Cable Control Files
Regraded Unclassified
91
COPY NO
NOT TO BE RETRANSMITTED
SECRET
OPTEL No 267
Information received up to 10 A.M. 16th August 1944.
1:
Southern France On morning 15th U.S. INfantry formations
assaulted over beaches between AGAY
(4 miles E. of 3. RAPHAEL) and BAIE DE CAVALAIRE (10 miles E. BORMES)
Assaults were preceded by landings of British and U. 3. airborne
forces as well as U.S. and French Commandos. ILE DE PORT-CROS
and ILE DU LEVANT, 10 miles S. of BORMES , have been captured. All
assault landings carried out to schedule and only slight opposition
met. Allied fleet and air forces covered landing and two small
enemy vessels were sunk. Air opposition slight.
2. NAVAL
Home Waters 14th. A UK LSI (L) was sunk and a U.S. LST
also hit, probably by U-boat off HARTLAND POINT.
15th, A LST in returning convoy was damaged by under water
explosion S.E. of ISLE OF WIGHT; half hour later a British Corvette
probably sunk U-boat same area.
3, MILITARY
N.W. France A large proportion of fighting troops of enemy
armour and infantry formations are still West of
FALAISE-ARGENTAN GAP but there are indications that elements,
including services, have escaped to the East. The various
identifications obtained on different sectors indicate enemy units
much mixed.
U.S. troops are reported to have reached LA LOUPE, 22 miles
W of CHARTRES.
Advances up to 5 miles have been made on second army front
and VASSEY has been captured. Enemy still hold CONDE, Canadian
army have advanced on 31 mile front in area NE of FALAISE and
are within 21 miles of the town.
4. AIR
Western Front 15th. 1,832 British and U.S. Bombers attacked
19 airfields in Low Countries and GERMANY
dropping 7,121 tons with good results. AEAF medium and light bombers
dropped 135 tons on roads and railways in PARIS and ROUEN areas,
also 123 tons on fuel dump in FORTE DE CHANTILLY. Fighters destroyed
many vehicles. Enemy casuatlies 28:5:9 in combat and 410:6 on ground
for loss of 18 heavy bombers, 1 medium bomber and 16 fighters
missing.
15th/16th. 63 aircraft despatched without loss.
32 attacked BERLIN.
Italy and South France 14th. 771 medium bombers and fighter:
attacked gun positions, bridges and radar installations in SOUTHERN
FRANCE, and targets in battle area.
15th. Fortresses and Liberators dropped 434 tons on targets
in CANNES and TOULON areas and 323 tons on bridges over RHONE near
VALENCE.
German Activity During 24 hours ending 6 A.M. 16th
99 flying bombs plotted.
Regraded Unclassified
92
August 17, 1944
12:00 p.m.
GROUP
Present: Mr. C. S. Bell
Mr. D. W. Bell
Mr. Luxford
Mr. Haas
Mr. Blough
Mr. Sullivan
Mr. Gamble
Mrs. Klotz
Mr. Gaston
Mr. Pehle
H.M.JR: Well, I have only seen one paper since I
have been gone. I see you froze some Argentine gold.
MR. D.W. BELL: Well, I don't think we have frozen
it, but refuse to let it go out. Apparently that came
out of the State Department.
MR. LUXFORD: State or FEA.
(Mr. Gaston enters conference)
MR. D.W. BELL: We didn't give anything out on it.
H.M.JR: Don't they tell you anything?
MR. LUXFORD: State? They are again raising with
Hull the freezing of Argentine.
H.M.JR: Have they frozen it?
MR. LUXFORD: They are recommending a freeze.
H.M.JR: How does it get in the paper?
MR. LUXFORD: That is just on the gold. According to
Collado it came from the Argentine Embassy. The Argentine
Embassy reported it to the press, he says.
Regraded Unclassified
93
-2-
(Mr. Pehle enters conference)
H.M.JR: What is the difference?
MR. LUXFORD: We are just holding it up until we
decide whether he will freeze or not.
H.M.JR: But the paper said we have frozen it.
MR. LUXFORD: It amounts to the same thing. We
took it off the boats. It is laying down in New Orleans
until it is decided whether they will freeze.
MR. D.W. BELL: We are kind of holding it back,
aren't we, on the gold?
MR. LUXFORD: To this extent. They are holding up
on sending down further boats with gold. We asked them
what they wanted to do on this gold. They said, "We are
considering a freeze and we don't know yet." We said,
"What shall we do?" They said, "Whatever you want to.
We are not going to object." So we took that as permission
to hold it until they made up their mind.
H.M.JR: Before we get into too many details, you
might like to know a little bit about the trip. I got
over there at midnight Sunday. I was on the train twenty
minutes later in Scotland. Eisenhower had a train up
there for us. We got down to the Southern part of England
where his headquarters were about noon and then we had
lunch with him. And we started right in with General
Eisenhower to find out where he stood on this business
of how he is going to treat Germany when he first gets
in. He was very positive that he was going to treat
them rough. He was perfectly willing to let them stew
in their own juice at the beginning, which is quite
contrary to the plans of G5, which General Holmes has
been making, as to how they propose to treat them.
Regraded Unclassified
94
-3-
We went around in the afternoon sightseeing at the
docks. I had supper with General Bedell Smith, Chief
of Staff, and all his Deputies, and they were all kind
of jumpy because they were expecting other sorts of
moves. I never saw Eisenhower in such good shape. He
made the best impression he has ever made on me; he was
completely relaxed and determined that he would clean
this thing up while the weather was good. And that night
we still stayed on his train down in that part of England.
The next morning we were supposed to leave at eight-thirty
for England and couldn't. We went over to England with &
fighter escort. That was fairly precious. And before
I left General Bedell Smith said, "Now, you can't go
beyond Headquarters. I said, "Look here, General Smith,
don't give any orders like that. You let General Bradley
decide how far I can go. Well, he said all right reluctantly.
We got over to Cherbourg. It only takes twenty-five minutes
to go over there, and General Lee, Deputy to Eisenhower, in
charge of all services and supplies, took us around, and
the thing that they are doing at Cherbourg--it is to hell
and gone, the docks. The reason they are repairing it so
fast is that all of the construction along the wharves are
wood, wooden piles, wooden piling, everything, so they can
go very, very fast. No concrete, no permanent construction.
MR. SULLIVAN: That is the reconstruction.
MR. GASTON: What is the old construction, wood?
H. JR: No, concrete. But they are really just
building temporary things. Everything is driven-wood
piles. They go out beyond the present docks and drive
these in the harbor, 80 to speak, these piles, and wood
on top. Then, of course the things that they used
everywhere are these ducks that go out and unload and
come back again. But the one thing you get over there
is that the speed and tempo is just unbelievable. I
mean, I have never seen any place where the electricity
is so in the air and the drive behind this thing, you
just can't understand it until you see it and feel it.
Regraded Unclassified
95
-4-
We were going around Cherbourg and I saw this
Navy Lieutenant. I shouted to him. It was Jamieson
with a whole portfolio of beautiful sketches on the
Cherbourg thing. Of course, the whole Service and
Supply is beautifully organized, because the thing
that the Germans don't know, you see the bulk of the
stuff is still landed at these beachheads where they
landed originally. What they have done is, the Americans--
I forget how many steamers, they have taken these old
steamers and have sunk them right out in the ocean, so
to speak, and they besides that, they have some concrete
things that they have sunk, which acts as a breakwater.
For forty years before they landed, the water always
came in one direction. Just when they landed, the wind
shifted. But they bring these boats in, and then they
not only have these ducks, but the new thing is a kind
of pontoon which the Navy has developed, which I would
say is about five by five and seven feet deep.
MR. SULLIVAN: Compartments?
H.M.JR: Yes, and they bolt a lot of these together
and then use them as a barge or they use them as a runway
or use them any way as a breakwater. They use them all
different ways to bring this stuff in. That is quite new
and they are very much pleased with it. And this enormous
stuff--there is one beach I went to--over five hundred
thousand men come in through these barges and one thing
and another. At one beach alone, five hundred thousand.
It is just unbelievable. The tonnage is simply huge.
MR. D.W. BELL: They are not using the port yet?
H.M.JR: A little, but it is the beaches. That is
what the Germans haven't been able to figure out. I went
to the two American beaches, and there is one beach--how
they ever landed--they have & bluff that rises at least
& hundred feet, and a blockhouse at the bottom. When
the first division landed there, they landed plump into
a German division which was on the loose. I don't think
that has been published yet.
Regraded Unclassified
96
-5-
MR. D.W. BELL: General Holmes told us that:
H.M.JR: Of course the loss of lives was something
terrific. Anyway, the loss of lives--let's see, in
American troops, something like sixteen thousand dead
and when I left there, there were seventy-eight thousand
wounded. And the dead is twice that of the English, and
the wounded is four times. The wisecrack they say over
there is, "If you are not careful, we are going to
encircle Montgomery!"
MR. GASTON: Did you notice this interesting serial
story in the papers about Montgomery? The Germans announced
that Montgomery was in command only of the British and
Canadians. That was denied in a half-hearted sort of way.
Then it was announced by AP and all the news services from
France that Montgomery was now in command only of the
British and Canadians and Bradley in command of all the
American troops, directly responsible to Eisenhower.
That came out from the beachhead past the censor. Yesterday
that was denied in London. Tomorrow it may be different.
H.M.JR: The facts are this. When Eisenhower moved
his headquarters to France, he became Commander-in-Chief
of the Allied Forces, in France, and Bradley became
directly responsible to him.
MR. GASTON: That is the story that was told the
day before yesterday and denied yesterday.
H.M.JR: That is the correct story.
MR. PEHLE: He took Montgomery's job?
H.M.JR: No, no. You see, there was a Command of
Allied Forces in France, of which Montgomery was the Head.
Eisenhower moved to France and he became Commander of the
Allied Forces and as such, Bradley is directly responsible
to him, as is Montgomery.
MR. SULLIVAN: Then that puts Montgomery and Bradley
on an equal footing, one in charge of Americans and one
of British.
Regraded Unclassified
97
-6-
H.M.JR: Bradley is doing as he pleases, anyway.
MR. GASTON: The Germans told us that two weeks ago
and I thought it was true at the time.
H.M.JR: He paid practically no attention to him.
I had the good fortune to have Henry meet me in
France when I got off. He is attached there to General
Eisenhower's Headquarters. I said, "I have returned
from France where both Henrys were well." Mrs. Morgenthau
said they eliminated the word "where".
MRS. KLOTZ: Yes, that didn't show up.
H.M.JR: I put it in. She didn't get the one and
and only letter I wrote. He is fine and looks fine. I
didn't get up to his headquarters. We spent the night
in a little French house which they have sort of taken
over. And old grandmother and her daughter, fifteen,
looked after us. I have decided if I have insomnia to
throw away the bed sheets, because I slept without a
pillow, between two army blankets, and I had the most
perfect sleep I have ever had. If you have insomnia,
throw away the bed sheets.
I brought him the New York Times and the New Yorker.
When he left he said, "Daddy, would you feel very badly
if I only took the New Yorker?" (Laughter)
Then the next morning early, eight-thirty, we were
at Bradley's Headquarters. He makes an excellent impression.
He is a much finer-looking soldier--I have some very good
pictures--when you see him. He is well over six feet tall
and another man like General Clark. Very quiet, complete
self-control, complete balance, and seemed to know just
what he is doing and moves at a steady pace but not too
fast, I mean in his actions. It didn't take him very
long. He planned our trip. I have a map somewhere--
Regraded Unclassified
98
-7-
MR. GASTON: Where did you go?
H.M.JR: Went down to Corps Headquarters and then
Division Headquarters. At Division Headquarters, this
General Brown, head of a former National Guard organization
from Pennsylvania, made a terrific impression on me. I
had a great argument as to whether I should or should not
report him, but I was saved the trouble. They removed
him the next day, because the people with me evidently
were conscious of it. Then they put in another general
to take this General Brown's place and the next day a
sniper got him through the neck.
They let me go down within five thousand yards of
the Germans this time, but they wouldn't let you go any
further, because the thing is so fluid and they have
little pockets behind. They just don't know. But in
front, of course, of this particular group where we
were--well, we were west of Avranches and east of the
place called Villedieu, and due south of St. Lo.
MR. GASTON: You were right in the spot where the
Germans had been counter-attacking a day or two before.
H.M.JR: This, I think, was the 29th or 29th Division,
I am not sure. That was where the fighting was the most
severe and they had five German Divisions right opposite
there. Three were SS Divisions. This was where the
fighting was the most severe.
MR. GASTON: They tried very hard to break through.
H.M.JR: Very hard to cut through to Avranches.
This was where the spearhead was, right where we were.
The thing that nobody could understand is that--I mean,
he threw in three out of the five Divisions, SS
Divisions. And once they were repulsed. Why he has
permitted this enveloping movement, nobody can understand,
unless it is not having any air, he can't see our troops.
MR. GASTON: It seems so plain. You just couldn't
understand. In our newspapers you could see it developing.
Regraded Unclassified
99
-8-
H.M.JR: They think maybe they have orders that
this should be another Stalingrad. But of course,
General Patton has been perfectly magnificent. It
is he who has done all of this. The place that they
took us was most interesting and was just south of
St. Lo where the Air Corps has put in fifteen hundred
bombers on an area about five miles deep, not much
over a mile wide and that is where the break-through
was, just south and east of St. Lo and that was--
they withdrew our troops. There isn't anything left.
I picked up a beautiful German helmet under a tank
there.
MR. D.W. BELL: Do you have this tapestry with you?
H.M.JR: That is just a personal matter.
This place, what they did there--and I wouldn't
repeat any of this anywhere--they ordered our troops
to withdraw fifteen hundred yards, which is almost a
mile. Then they dropped smoke-screens to show our
fliers where the boundary was. They came through
and a whole wing missed the thing by three thousand
yards and that is where they killed General McNair
and eighty-seven men. Then they said, notwithstanding
the fact that this Company was completely decimated,
they went in anyway and attacked. I don't know whether
any of you saw anything on that. They wanted to with-
draw because they felt so terrible, but they went in
and did the attacking, but they missed their mark by
three thousand yards, because General Spaatz showed
me a map of every bomb. They feel terrible. I will
say this for the ground troops, they didn't complain
or say a word.
MR. GASTON: The Canadians did identically the same
thing day before yesterday.
H.M.JR: And the excuse that they give is that
what they call pin-point bombing--I don't understand it.
When they have this kind of ground strafing they don't
know how to do it. General Spaatz went into lengthy
Regraded Unclassified
100
-9-
explanation and they say they feel something terrible.
And of course the trouble with the air people again is
they completely mis-figured, I don't know how, the
German air strength. The German air strength, the
production, is just four times what Arnold told me.
But it doesn't make so much difference, because they
have licked them anyway. The air people swear that
they are all green pilots and that there are practically
no old pilots left.
Really, there are only tawo things which are new,
as far as warfare is concerned. One is these beaches,
which is a completely new thing in warfare, this
amphibious warfare, and continuing to land on the
beaches.
MR. GASTON: Plus the Naval support.
H.M.JR: No, that isn't new. The other thing which
is new and I can't remember his name and I haven't got
his name here, they have a two-star Air Corps General
attached to Brandon. I met him once in Philadelphia.
And what they have done and they have only done it the last
two or three weeks and I think it is a success, in each
tank group in one tank which is especially equipped, is
an Air Corps pilot sitting in that tank. I don't think
that has been told. And this Air Corps pilot sitting
in the tank is in constant communication with the
observation plane above, and the air people go ahead and
they will see this tank and see this and that and they
report down to this fellow and they direct constantly
the tanks from the air. And in many cases the air people
get the tanks. In other words, the air people clear the
ground by shooting up the tanks and then the tanks go
through.
MR. GASTON: Yes, that has been told.
H.M.JR: In one case they found a couple of our
tanks and a column of German tanks going down the same
road, neither knew they were both following each other.
But it is the air people firing with their fifty-calibers
from the rear. They shoot up these tanks and then our tank
101
-10-
people go through. They say it is all within the last
thirty days, they have never done it before. It is quite
new. But they feel if they get this enveloping movement,
irrespective of the one in the south, there is nothing
to stop them from there to the Rhine, absolutely nothing.
MR. GASTON: There is an army up in the Pas de Calais
region.
H.M.JR: They are older, non-mobile troops.
MR. GASTON: They think they can take them without
difficulty.
H.M.JR: They are not worried about them at all.
If this is successful, in no time at all you will see
our troops on the Rhine, irrespective of what happens
in the south. And they are not going to bother with
Paris.
MR. GASTON: They will go right around it, up the
Loire and up the Seine Valley.
H.M.JR: Yes, but it is anybody's question what
will happen. Then they know from interception that the
Germans are very short of gasoline. I mean, their
flights are very much limited by the gasoline, as we
are, too.
MR. D.W. BELL: Really?
H.M.JR: Our flights are definitely limited by the
amount of aviation gasoline. We do not have enough.
MR. PEHLE: Why not? Transportation?
H.M.JR: No, because it isn't here. They are
definitely short of aviation gasoline. There are
definite flights which are held up and they have many
more crews than they have fighter planes. They are
waiting, definitely. They don't have enough fighter
Regraded Unclassified
102
-11-
planes. We are short of those. And they are short of
heavy ammunition, too. They don't begin to have enough.
MR. D.W. BELL: Didn't Nelson testify yesterday before
Committee that there was plenty of ammunition on the Front?
H.M.JR: It isn't true. One General will tell you
one thing and another, another thing. I have asked the
same thing over and over again and they definitely have
to parcel out their ammunition-- the heavy ammunition,
the heavy guns. Will you please see if you can get &
copy of my broadcast or record?
MR. GAMBLE: Yes, sir.
H.M.JR: The reason I am trying to do that is, as
Eisenhower said, "The nearer you get to victory, the
more you have to speed up, and at home, the nearer you
get to victory the more people think you can sit back
and take it easy. It is just the reverse.
MR. GASTON: Yes.
H.M.JR: The thing I would like, certainly I am going
to tell the President, I went to the evacuation hospitals
in France, and in some cases it is unbelievable. Men are
there four hours after they have been wounded. I saw them
put them in, went into the plane, and these air nurses are
the finest body of women I have ever seen. They are
magnificent, these girls. Last night they asked me
to go on one of these planes that came in there. I
went on. There were sixty boys and I shook hands with
every one of them, and some of them are very, very
sick.
MR. PEHLE: Was the plane on its way back here?
Regraded Unclassified
1/s
103
- 12 -
H.M.JR: Yes, they come in to LaGuardia. I can't
understand why it is secret. There were three last night
in Newfoundland on the ground. This stupid Colonel didn't
say the boys wanted to see me. They asked why I wouldn't
come and see them. The ones up there had already heard
I had been on the ship. When you see these people - and
the odor is such that I had all I could do not to vomit.
It is something terrific, the odor of the wounded. These
men all come in to LaGuardia - I don't know how many a
day - there were three ships while I was there - ambulance
cases in Newfoundland. Why they don't take some of these
labor leaders up and let them see these boys come out, I
can't understand. Why they keep it a secret that they
all come in to LaGuardia--
MR. D.W. BELL: I don't think it is a secret at all.
I think it is known. It has been published once or twice.
I don't think there is a lot of publicity given to it.
H.M.JR: Why not? why not let some of these people
stand there and go into one of these ships. That brings
you right to the front. You don't have to go to France,
you can go right to LaGuardia and see these men. I mean,
they bring the badly wounded as well as the partially
wounded. It takes an awfully strong stomach, and the boys
are wonderful. That sight - and going into these shelters
in England - I just can't tell you. You see a family -
there was one family there that had no home and they had
been there for six weeks, living there. That was their
home. I saw one mother with five children. I saw another
mother with an eight-months-old baby.
Now, there is this one shelter - a new subway, never
finished - one hundred and twenty feet down - which they
are saving in case these thirty-tonners come over. That
one is beautiful and clean, and everything. Then there
is another one which is really under a bridge over the
Thames. They just close the arches, and here you are,
right at the river in the dock area - the poorest area.
You go in and see these people - this is London - and
see the spirit.
Regraded Unclassified
2/s
104
- 13 -
Sherwood went the night before. he helped me, inci-
dentally, on the talk.
MR. GASTON: Bob Sherwood?
H.M.JR: Yes, and Ed Murrow, who is a grand fellow.
He couldn't stomach the second night - he just couldn't
go through twice. But the spirit of those people! And
they loved it. He didn't want me to take a camera down
there, so I said all right. They would have loved to have
their picture taken.
And Mrs. Churchill is just marvelous. She is like
Mrs. Roosevelt. She goes in there and she is just wonder-
ful. They like to be talked to. You see two little boys
in bed together. They have got all the family - in-laws
and everybody. They will be in one little group.
And in the whole of England there was only one person
had a little kick. God! I don't know how the American
people would be, but, of course, the thing that this has
done is toughen them up, SO that - believe me - any idea
of any negotiated peace, or anything like that, is finished.
I asked the fellow in the hotel who looked after me,
"How do you feel about the Germans?"
He said, "Well, we want to stamp them out, but," he
said, "the high finance doesn't!"
MR. D.W. BELL: The President's press conference this
morning said that we couldn't have a negotiated peace
before we occupied both Germany and Japan.
H.M.JR: Well, I don't want to go into it now, but
I spent most of my time on what the negotiations are, and
how they are going to treat Germany. He will have to get
awfully busy. It took me days, and days, and days, but
I got the story. There isn't anything in regard to
Germany which is being carried out. I am going to tell
Hull so, because his boys are the worst. It is going to be
a nice WPA job.
Regraded Unclassified
3/s
105
- 14 -
Keep a central Germany; keep a strong Germany; and
the result is that this group that is studying it - the
Russians won't tell them anything - the Russians won't
have anything to do with them.
MR. D.W. BELL: Of course, they want to string out a
pretty strong Germany between them and Russia - the English
do.
H.M.JR: Eden doesn't.
MR. D.W. BELL: Between them and Russia?
H.M.JR: No, Eden doesn't want that. ne wants to
take Germany apart, completely apart. He is very good on
this thing.
MR. D.W. BELL: I don't believe they have talked that
way over here.
H.M.JR: I know they haven't. Some are good and some
aren't. But Eden is very good on this thing, and he
doesn't pull his punches, either. I don't know how much
Mr. Hull knows, but he is certainly going to get an ear-
full. I didn't go over for that, but I made that my
business.
MR. D.W. BELL: You got the word that Mr. Hull would
see you tomorrow morning at nine-thirty?
H.M.JR: Yes, I want to see him first, before I see
anybody else.
I left Joe there to clean up on the Hungarian thing and
nothing else.
MR. LUXFORD: Good.
MR. PEHLE: You got the cable, didn't you? We sent
him a cable. Did he get it?
H.M.JR: I think so.
Regraded Unclassified
4/s
106
- 15 -
But Joe was insisting on raising the quota question
of Palestine and I took the thing up with Mr. Churchill
and he would just have no part of it. They had the meet-
ing the night before of the War Cabinet and they were
perfectly willing to go along with us.
MR. PEHLE: They didn't, ough.
H.M.JR: Wait a minute. I am raising the financial
question. Joe was SO sure that the rest would be so easy.
I took it up with Eden the first night I got there. Sir
John Anderson was there. Eden said it was a matter of the
colonies; they are scared to death of the Arab question.
So I finally had to tell Joe I had to give him a directive
not to do it. I wanted an over-all agreement which he
worked out that afternoon with the people down the line
in the Foreign Office - an agreement - a joint guarantee
that they would take everybody that came out of Hungary, do
you see? The position I was taking - "We will find a
place" - just as I took with the President. "Let's fill
the quota up first." I was terribly pleased. I talked
to Weissman twice.
MRS. KLOTZ: Did you see him?
H.M.JR: No, his doctor wouldn't let him come, so he
sent a Professor Brodetsky to see me. I was awfully glad
Joe got there. Professor Brodetsky said, "This is not a time
to raise politics" - meaning Jewish politics. He said, "This
is a question of saving lives. The two things have nothing
to do with each other.
He said he would much rather have the over-all joint
guarantee and not raise the issue of the White Paper, and
that the two things had nothing to do with each other.
MR. PEHLE: The British twice have refused to go along
with us on the joint guarantee.
H.M.JR: I know, but here is a representative on the
ground who took the position which I was taking - to get
the joint guarantee.
Regraded Unclassified
5/s
107
- 16 -
MR. PEHLE: That is what we have been fighting for.
H.M.JR: But not bring in this question of the quota.
And after all, once the quota is full, I am confident that
the Anglish are not going to stand on five thousand, or
ten thousand.
MR. PEMLE: I don't think they could stand on it.
H.M.JR: I don't know where you and Luxford stand,
but I am sure, after talking with Churchill and Eden, that
if we had gone in there and put up a fight to break down
this quota, we would have got nothing, absolutely. This
way, I think the chances are ninety percent we are go ing
to get a joint statement in a day or two saying that we
will take all that come out.
Now, since I have been there - I don't know whether
it came from here - the Foreign Office showed Joe a cable
from this man that Sweden has sent down to Hungary in
which he has been able to arrange - this Swede - for
shelter for a great many Jews in Hungary. Did you know
that?
MR. PEHLE: I knew some of that.
H.M.JR: I don't know where you stand, but at least
that is where I stand.
MR. PEHLE: The reason I sent the cable, Mr. Secretary--
H.M.JR: I didn't see that.
MR. PEHLE: I just sent a cable to Joe saying what
this terrible position is which the British have taken -
that we will take all the responsibility and they will
cooperate with us. That just is not satisfactory.
H.M.JR: They have changed since that.
MR. PEHLE: That is wonderful.
Regraded Unclassified
6/s
108
- 17 -
H.M.JR: I am almost positive that they will join us
in a statement in which they will say that we will guarantee
to the Hungarians to take all the Jews that will come out.
MR. PEHLE: We have already sent our guarantee.
H.M.JR: And that we will share the expenses according
to our ability.
Getting away from that thing - you know that I fought
in connection with the English formula. They brought up
that same formula we had in connection with either France
or Holland--
MR. LUXFORD: Plan A.
H.M.JR: We got away from that. I was perfectly
happy.
Were you with me on this question of not bringing
up the White Paper quota?
MR. PERLE: Except that temporary shelter in Palestine
doesn't necessarily bring up the White Paper.
H.M.JR: It does 80 far as they are concerned.
MR. PEHLE: So does the Hungarian offer. That is why
they held back, wasn't it? Didn't they feel if we got
any considerable number out, they would have to give up
Palestine?
H.M.JR: It is in the back of their mind, but the fact
that Professor Brodetsky had that position - he represents
the Jewish people there - I had to take this position.
MR. PEHLE: I am inclined to agree that the only
way you could possibly break that is by Roosevelt taking a
terribly strong stand. he hasn't been willing to do that,
so I don't think you could break it down.
H.M.JR: lie won't take it because the quota isn't full.
Regraded Unclassified
7/s
109
- 18 -
MR. PEHLE: The quota isn't full because the British
have doled out the certificates one by one. I don't like
to say it, but since these negotiations have been going on
the Germans have stopped any immigration from Hungary.
H.M.JR: Anybody going out - and this man, this Wallenberg
is able to get them shelter in Hungary?
MR. PEHLE: To some extent. Wallenberg is there solely
because we put him there. He is really our representative.
But the Germans are now taking this position: Nobody
can leave Hungary unless they get ransom, and there is no
disposition, any place, to give the German Government ransom
at this point.
H.M.JR: Joe will be there. And, incidentally, Goodhart
has agreed to become my representative. I told him - "Now
please don't take this unless you think you are carrying a
torch and feel very deeply about it." He agreed he would.
MR. PEHLE: How long will Joe be away?
H.M.JR: According to Joe he can clean it up in a
couple of days. He thought he would clean it up yesterday.
I left London at two o'clock yesterday. He thought he
would clean it up yesterday - he was just sure he would.
MR. PEHLE: There is nothing we should do from this
end, Mr. Secretary?
MR. GASTON: When did you leave Prestwick?
H.M.JR: Three hours later, about five o'clock their
time. About twenty-five hours elapsed time from the time
we left until the time we got to New York.
MR. PEHLE: There is nothing we should do from this
end?
H.M.JR: I don't think so. Winant is very good. Joe
is there. You know the Interdepartmental Committee is
putting up four hundred thousand pounds.
Regraded Unclassified
8/s
110
- 19 -
MR. PEHLE: For this purpose?
H.M.JR: Yes; Joe went to that meeting.
MR. PEHLE: We may have to let it be known here that
the United States Government accepted that offer.
H.M.JR: It appeared in British Intelligence. Who
said that the New York Post--
MR. PEHLE: That is right. They have a story that
the British had accepted it, and they got it from the
British Embassy here.
H.M.JR: I read that and Joe was upset.
MR. PEHLE: It was a planted story and it was put in
because
H.M.JR: (To Mrs. Klotz) Make a note of this. British
Intelligence - News Intelligence - send out a summary of
American news every day to Angland. It is wonderful.
MR. PEHLE: I have seen one copy.
H.M.JR: Then one was sent from here, not nearly as
good.
Mr. PEHLE: We may have to let it be known here, Mr.
Secretary, that the United Stated accepted that offer.
H.M.JR: I wouldn't do that. I would give Joe another
day or two.
MR. PEHLE: We can't wait long, for this reason, that
it is very likely that things are going to go very bad
in Hungary again.
H.M.JR: A day or two wouldn't help. If you did that
just now it wouldn't help Joe any. Winant is very hot
on this thing.
MR. SULLIVAN: How is Winant?
Regraded Unclassified
9/s
111
- 20 -
H.M.JR: He is all right. He is over-worked the way
everybody is over there, but he couldn't have been nicer
to me. Here, Churchill was leaving that eventing I got
back from Italy and he gave me two hours. I got & great
kick - he took me through his own map room, himself, which
was quite a thrill. ne is a great fellow. But he started
off, bang, on how England was flustered. (To D.W.Bell) I
will give you a written memorandum later. He and I got
along very well. We put it right on the line.
MR. D.W. BELL: Still broke?
H.M.JR: The interesting thing with Churchill was -
he said, well, he was practically seventy and it was time
he made peace with his Maker, and as soon as the war was
over he would resign and be the most unpopular man in
England.
I said, "Well, Mr. Churchill, I want to go back to my
farm, myself," whereupon he broke into this song, "I want
to go back" - you know this song. He knew all the words
and there are two verses. How does that song go? He
knew two verses.
MRS. KLOTZ: An American song?
H.M.JR: The great joke with Harry is, he had one
night off; his alibi was Bernstein. But unfortunately,
the next day, as a result. of his one night without me, he
had one of his bad spells. So I told him the moral was
he had better stick around with me. Bernstein was no
alibi.
MR. LUXFORD: How is Pernie?
H.M.JR: Bernie is very fine. He said, "You know,
my wife took my second child to the doctor. The doctor
looked at that child and said, 'Mrs. Bernstein, that is the
finest specimen I ever saw. You should have five more
like it.'"
Regraded Unclassified
10/s
112
- 21 -
I said, "Bernie, you don't hear, see, or understand
anything!'
He did bring Taylor back, you know. His wife is
expecting a child and is all alone - just to stay until
she is all right.
But bernstein worked on me the whole time I was there.
Somebody said something - yes, General Holmes said three
times he had recommended Bernstein become a general. He
couldn't understand why not. I couldn't help but say, "Well,
I wouldn't want to be around when Mrs. Ed Foley hears
about it." (Laughter) I said, "When she hears about
General Bernstein I want to be out of town."
lie has recommended he become a general three times.
MR. GASTON: Where is Ed?
H.M.JR: Italy.
These little buzz bombs go over - they make a note
very much like a single-engine fishing vessel. They go
chug-achug-achug. Then supposedly thirty seconds after
they stop, they hit. I heard two go over our hotel. I
could hear it just that close. We came out, once, of officers'
mess and you could see the thing about a mile down, but
that is as close as I got. Nobody pays any attention to
them - I mean, when they go over! (Laughter) But every-
where you go you see the damage in London. The damage is
unbelievable; it is terrific. Averywhere you go you see
damage.
MR. GASTON: Did you see Larry Bernard?
h.m.jk: No, what is he doing?
MR. GASTON: Coast Guard. And Hesford is over there,
also, on this air-sea rescue stuff.
H.M.JR: By the way, did Lynch stay or go?
MR. LUXFORD: Lynch stayed.
Regraded Unclassified
11/s
113
- 22 -
H.M.JR: Is that right? That is very nice.
Well, Bell, in the five minutes we have left, is
there anything? I have been just sort of gossiping here.
MR. D.W. BELL: I only have one thing that needs to
be settled today. Dean Acheson wrote you a letter and
asked for designation of a Treasury representative to serve
on a committee of UNRRA. UNRRA meets in Montreal on
September 15 and he wants a man, SO I have written a
letter designating Harold Glasser. Glasser was on it
before. He said he would like to have a decision today
so they can get started.
H.M.JR: He would be the logical fellow. (Secretary
signs letter to Dean Acheson)
When will that be?
MR. D.W. BELL: Sometime after the 15th. I have said
in there that he will be available. They also want another
Treasury representative to serve on a subcommittee as a
counsel. That subcommittee will pass on whether or not a
foreign government is able to pay. I have suggested Harry
for that; foreign exchange for supplies furnished, rather
than getting direct relief.
H.M.JR: Who is asking?
MR. D.W. BELL: Dean Acheson. Same kind of a letter.
H.M.JR: Does that mean that Harry has to go up to
Montreal?
MR. D.W. BELL: No, but whenever a country comes in and
asks for relief - Greece is now in; that will be submitted
to this Committee and they will pass on it and advise the
counsel as to whether or not the country can pay. The first
one is Greece and that would be rather simple, I should
think, that they cannot pay. (The Secretary signs letter
to Dean Acheson in re Mr. White)
H.M.JR: Anything else?
Regraded Unclassified
12/s
114
- 23 -
MR. D.W. BELL: That is all right now.
H.M.JR: Incidentally, the Eighth Air Force has a
fellow from Massachusetts who has started a special War
Bond Drive, asking for thirty dollars per man. It is the
best thing I have ever seen. Smith has the whole story.
They gave us a memorandum. If they would do that in each
group - of course, I started to talk about this fellow
Spaatz - Doolittle says, "That is the trouble - as soon as
we get a good man, you want to take him away. But
certainly he ought to be lifted up to do the thing for the
entire Air Corps. They are going to get thirty dollars
per man. They have their own posters, we brought them
back.
Then another interesting thing - he is going much
further; conversion of insurance, and working up a whole
plan to find jobs for these men - find places for them -
he is a most unusual fellow.
MR. SULLIVAN: Do you recall his name?
H.M.JR: No, but it is in the report.
MR. GAMBLE: We will get a copy?
H.M.JR: Yes, there is a copy available. But it is
way, way above anything I have ever seen. And the fact
that these men are willing - I mean these fellows who are
risking their lives are doing so handsomely. But the
whole thing is Doolittle; he is looking forward for these
fellows so they will have some idea of security when the
whole thing is over. He is working on that now. I think
they ought to pick that fellow up. He is really good.
Instead of sending nine generals over to do something,
who know nothing about it - have they gone?
MR. GAMBLE: Yes, sir; part of the party has gone.
As a matter of fact, Mr. Secretary, they picked very good
men for it. I was quite surprised.
Regraded Unclassified
13/s
115
- 24 -
The man in charge of it was our Administrator in
Nebraska before he went into the Army, McDermott. He
has the rank of a general now.
MR. LUXFORD: I know that man.
R. PEHLE: Mr. Secretary, is the Treasury being
represented at the Dumbarton Oaks Conference?
H.M.JR: Not that I know of.
MR. D.W. BELL: Not that I know of.
MR. PEHLE: There are likely to be all sorts of
questions like reparations coming up there. Even the Army
is sending General Strong.
MR. LUXFORD: Ben Cohen is attending.
MR. PEHLE: I should think clearly the Treasury has
a very important part of it.
H.M.JR: Anything else?
MR. D.W. BELL: We have a draft of the Executive Order
you asked to be prepared. It is ready any time you want
to go over it.
H.M.JR: I will be around most likely through
Saturday, anyway.
Regraded Unclassified
116
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
Date
August 17, 1944
TO
Secretary Morgenthau
FROM Mr. Luxford
(For your information)
Report on public education program on
Fund and Bank
1. American Forum of the Air Broadcast on August 22.
The nature of this broadcast, participants, and the
preparation of the questions and answers have been outlined
to you in a separate memorandum. There remains to be done
in connection with this program two things: First, the
preparation of your opening and closing remarks which are
presently in draft form; second, fixing a time for a
discussion of the program between Granik and the delegates.
Granik would like to have this some time on Monday.
It is contemplated that the American Forum of the Air
will provide two further programs on the Fund and the Bank,
both of which will be of the controversial type with Taft
and Charles Dewey appearing as opposition on a program
which has been tentatively scheduled for the middle of
September.
2. Lunch with Salzburger (New York Times).
After discussing this matter with Mr. Gaston, I
advised Mr. Salzburger that I would have luncheon with him
and members of his editorial staff on Monday, August 21. In
my opinion, it would be very helpful if it were possible for
Mr. White or one of his men also to attend this luncheon.
I should like to discuss this with you at your convenience.
Regraded Unclassified
117
- 2 -
3. Program for Women's Conference on International Affairs.
We have worked out on a tentative basis furnishing
speakers for a discussion of the Fund and Bank before the
Women's Conference on International Affairs. This is 8.
small informal group in Washington which is able to reach
the leaders of most, if not all, of the national women's
clubs and organizations. The Conference will sponsor the
program and invite the national leaders of all the women's
organizations- to attend. They have previously cooperated
with State in handling similar programs on the education and
food conferences which were very successful with between
75 or 100 women leaders attending. It would serve as an
excellent forum for us to get over to the women of the
country the importance of the Bretton Woods Conference and
to enlist their cooperation. We expect to have a full day's
program at a layman's level with a number of speakers. A
transcript of their statements would then be published and
would be distributed along with a number of other documents
on the Fund and the Bank to each of the persons attending
the Conference and also be made available to the local
women's clubs throughout the United States.
4. Americans United for World Organization.
This is a group representing the recent merger of the
United Nations Association, Committee to Defend America,
Fight for America group, American Free World Association,
and Citizens for Victory. Its purpose is to sell the public
on the need for United State participation in cooperative
international organizations. We have discussed the matter
with a Miss Henderson representing that group who has assured
us of their desire to cooperate and it will now be necessary
to work out an educational program under their sponsorship.
Work is being held up tentatively with this group since they
have only recently organized and they want to complete their
organization work before inaugurating the educational program.
5. United Nations Association.
This is one of the groups mentioned under 4 but still
maintaining a separate identity. I have an appointment with
Clark Eichleberger, the National Director of the Association,
to work out their participation in an educational program.
Regraded Unclassified
118
- 3 -
6. American Legion.
We have discussed the merits of the Fund and the Bank
with Mr. Galloway who is Chairman of their Sub-Committee on
Foreign Policy. He is going to prepare a report on the
subject for the Legion and he wants to obtain our comments
before submitting it. While he is inclined to be conservative,
nevertheless we are hopeful that we can get him to adopt a
sympathetic approach. It will, of course, be extremely
helpful if we can get the American Legion working with us
in this field.
7. Discussions with Delegates.
In connection with my talks with the various delegates
regarding their participation in the American Forum of the
Air broadcast, I have had an opportunity to also discuss with
them in a general way the subject of cooperation with us on
the Fund and the Bank.
(a) Brown has been very cooperative and advises me
that he is "working himself to death" attending informal
meetings in Chicago explaining the meaning of the
Bretton Woods Conference.
(b) Acheson is most anxious to cooperate on the
radio broadcast and has indicated a desire to discuss
in general the problem of public education.
(c) Senator Tobey is coming all the way from New
Hampshire just to participate in the broadcast. He
advises me that he has been working under cover on some
of the Republican senators, in particular, on Senator
Vandenberg.
(a) Congressman Wolcott was reluctant to participate
in the broadcast because he was afraid it might interfere
with his work behind the scenes with his Republican
colleagues. However, he is most cooperative and I have
prepared a separate memorandum on my discussions with him.
Regraded Unclassified
119
- 4 -
(e) Senator Wagner and Congressman Spence are,
of course, cooperative. Senator Wagner could not
participate in the broadcast because of a previous
speaking engagement in New York.
(f) Eccles appeared to want to cooperate.
However, he stated that he was in a difficult position;
that he had sent out a letter to each of the Federals
urging them and their officers not to make any public
statements in opposition to either the Fund or the Bank.
He said that this was particularly necessary in
connection with the New York Federal as both Sproul
and Williams were getting ready to attack. He now
feels that it would be unfortunate if he were to come
out publicly on the subject of the Fund and the Bank,
since it might open the opportunity for the New York
Federal officials to cut loose with their blast. By
refraining from a discussion at this time, he feels
that he can hope to hold them in line. He did say
that if he were called upon to testify before Congress,
that that would be a different matter.
(g) Vinson was most helpful and was anxious to
participate in the broadcast provided his health
permits.
(h) I did not invite Miss Newcomer to participate
in the broadcast because we already had an ample number
of acceptances. However, she was in Washington one day
last week and discussed with me the work she has been
doing to support the Bank and the Fund with various
women's groups. She will be most helpful and cooperative
and was quite enthused with the program for the Women's
Conference on International Affairs (Point 3).
8. Discussions with Bankers.
Last week I had a long discussion with John Laylin
(former Assistant General Counsel here in the Treasury)
on the Fund and the Bank and sold him on both plans.
Regraded Unclassified
120
- 5 -
He is counsel for a number of important banks and indicated
that he would "throw his weight" to get them to modify their
views. Later, he arranged a dinner at which his father-in-
law, a Mr. Morgan who is Vice President of the National City
Bank, as well as a Mr. Wasson, Vice-President of J. P.
Morgan. Wasson came down to Washington from New York just
for the purpose of participating in this discussion. By
the end of the evening, both Wasson and Morgan were in
agreement on the merits of the Bank and Wasson stated that
he was also prepared t o support the Fund. Mr. Morgan was
a great deal more conservative (one of these old gold standard
advocates) but it was clear that he was deeply shaken on the
Fund. He admitted its technical thoroughness but was still
yearning for the days of the good old gold standard. In
these discussions Laylin was extremely helpful. Wasson urged
us to prepare an annotation of the Bank and Fund Agreement
which might be studied by bankers. He felt that a more
complete explanation which might be possible in such
annotation would be most helpful in educating the bankers
who are anxious to study it.
9. Congressman Voorhis.
At Congressman Voorhis' request, Ness and I called on him
yesterday and discussed at length the Fund and Bank. He
indicated his willingness to support both proposals, and took
notes from which he intends to prepare a speech on the subject
which he hopes to deliver before Congress recesses.
QJL
Regraded Unclassified
121
THE AMERICAN FORUM OF THE AIR
COAST TO COAST MUTUAL BROADCASTING SYSTEM
fir
1627 K ST., N - W.
WASHINGTON 6,D.C.
METROPOLITAN 0010
THEODORE GRANIK
DIRECTOR
August 17, 1944
Dear Mr. Secretary:
This will confirm your kind acceptance of our
invitation to participate in the American Forum of
the Air broadcast on "The Meaning of Bretton Woods."
The program will originate from the Shoreham Hotel,
Washington, on Tuesday, August 22, at 9:30 to 10:15
P.M., E.W.T., and will be carried over the coast-to-
coast Mutual Network.
The other United States delegates to the Bretton
Woods conference who will participate with you are
Mr. Harry D. White, Mr. Dean Acheson, Judge Fred M.
Vinson, Senator Charles W. Tobey, Representative
Brent Spence, and Mr. E. E. Brown.
I understand that Mr. Luxford is arranging a
preliminary meeting for all the participants some
time Monday to discuss the format of the program.
I shall look forward with pleasure to seeing you
then.
With kindest wishes,
Sincerely yours,
The Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
Washington 25, D. C.
DEDICATED TO DEMOCRACY'S IDEAL - THE FULL AND PUBLIC DISCUSSION OF ALL SIDES OF ALL ISSUES
Regraded Unclassified
122
TO
SECRETARY MORGENTHAU
AUG 17 1944
FROM MR. LUXFORD
FOR YOUR INFORMATION
You requested a memorandum concerning the forty-five
minute broadcast over Mutual Network's American Forum of the
Air next Tuesday night.
The program will be conducted as a round-table discussion
on "The Meaning of Bretton Woods." It is contemplated that you
will preside and that the other participants will be Judge Vinson,
Dean Acheson, Senator Tobey, Congressman Spence, Harry White
and Ned Brown.
It is our present plan for you to open the discussion with
a short introductory statement of what happened at Bretton Woods.
You would then ask the questions and the other participants would
express their views extemporaneously. We have worked up the
attached set of questions and outline answers which have been
sent to each of the participants. It also is contemplated that
you would make a short closing statement. These statements are
in the process of preparation.
Regraded Unclassified
123
- 2 -
I am attaching a copy of the press release issued by
the Mutual Network on the subject.
Before you left for London we had definitely advised
Granik that we would have a broadcast on August twenty-second
on the subject of Bretton Woods. We were not able at that
time to state definitely whether it would be a broadcast of
the type described above or whether it would be one involving
you, Keynes, Kung and Stepanov. We later learned that Keynes
and Stepanov would not be available and then, pursuant to our
previous arrangements, we went forward on the American delegation
broadcast. I had understood that Fred Smith was taking the
matter up with you.
CAR
Regraded Unclassified
124
Press Information
AMERICAN FORUM OF THE AIR
Coast-to-Coast Mutual Broadcasting System
1627 K Street, N. W.
REpublic 5995
FOR RELEASE
IMMEDIATELY
"THE MEANING OF BRETTON WOODS"
Theodore Granik, originator and moderator of the Mutual Network's American Forum
of the Air, announced that the broadcast of Tuesday, August 22, will be the first in
a series dealing with the recent International Monetary Conference at Bretton Woods,
New Hampshire. The participants in this first round-table discussion on "THE MEANING
OF BRETTON WOODS" will be:
HENRY MORGENTHAU, JR., Secretary of the Treasury;
HARRY D. WHITE, Assistant to the Secretary of the Treasury;
DEAN ACHESON, Assistant Secretary of State;
JUDGE FRED M. VINSON, Director of the Office of Economic Stabilization;
SENATOR CHARLES W. TOBEY, of New Hampshire, Ranking Republican Member of
the Senate Banking and Currency Committee;
REPRESENTATIVE BRENT SPENCE, Democrat, of Kentucky, Chairman of the House
Banking and Currency Committee; and
B. E. BROWN, President of the First National Bank of Chicago, and Chairman
of the National Advisory Committee to the Board of Governors of the Federal
Reserve System.
Following this explanatory program, others dealing with the controversial issues of
the conference will be aired with members of the Senate and House of Representatives
participating.
Granik stated that his reason for scheduling such broadcasts is the seeming lack
of understanding of the Conference by the man-in-the-street, and expressed the hope
that these discussions will result in a clarification of the questions in the minds
of the American public regarding the Conference. It is also for this reason that the
above participants were chosen for the first of the series. All were delegates to
the Bretton Woods meeting.
The broadcasts will originate in the Mein Ballroom of the Shoreham Hotel starting
at 9139 P.M., and are open to the public without charge.
(30)
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125
QUESTIONS WHICH MIGHT BE USED AS
BASIS FOR ROUND TABLE DISCUSSION
ON AMERICAN FORUM OF THE AIR.
1. Now that a month has elapsed since the close of the Bretton
Woods Conference and you have had a chance to mull it over,
is there any particular point about the Conference that
sticks out in your mind?
[(a) the "give and take" spirit manifested by the
delegates of all countries;
(b) convincing proof that the United Nations can
and want to work together in peace as in war;
(c) the fact that the nations of the world are
looking to the U. S. for constructive leader-
ship in the post-war world;
(d) Russia's desire to cooperate with other nations;
(e) the full historical meaning of the success of
Bretton Woods;
(f) the success of international cooperation in the
monetary and financial field will determine the
outcome of international cooperation generally;
(g) the attitude of America toward the accomplishments
of this Conference will indicate to the world
whether we are going to pursue a policy of full
international economic cooperation, or one of
economic isolationism and dog-eat-dog competition
in international economic relations.]
2. This is a difficult question, but I would like someone to
tackle it: In a few words, how would you describe the
International Monetary Fund so the man-in-the-street could
understand its over-all meaning?
[(a) The Fund establishes machinery for stabilizing the
exchange value of the currencies of the world. This
stabilizing of currencies is of the very first
importance if we want 8. healthy development of world
Regraded Unclassified
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- 2 -
trade. It is necessary 80 that the American
manufacturer selling his products can count
on getting paid in currencies that will have
a stable value in relation to the dollar.
(b) The Fund also estabiishes certain rules of the
game for foreign trade so that every country
will get a square deal financially in its trade
with other countries joining the Fund. Thus,
not only dies the American manufacturer selling
his products abroad want to be able to count on
getting paid in stable foreign currencies, he
also wants to have assurance that when he gets
paid, no country is going to prevent him from
exchanging his foreign currency for U.S. dollars.
Similarly, he wants to know that if businessmen
in Country A are going to buy some machinery, that
he is going to have the same opportunity to sell
them that machinery and get paid as would a manu-
facturer in Country B. The Fund will constitute
one of the major instrumentalities for achieving
these goals.
(c) In order to help member countries stabilize the
value of their currencies, each member puts into
a common revolving fund gold and his own currency.
From this common revolving fund members can draw
foreign currencies in time of need, but as their
position improves they must restore what they have
drawn.
(a) In a nutshell then, the Fund provides international
machinery for stabilizing the values of foreign
currencies and for playing the financial game fairly
in the field of foreign trade and commerce. If
countries which are fulfilling these obligations
get into trouble, the Fund stands ready to make its
resources available to help them over & crisis and
to afford them a chance to work out their problems
without resorting to "sharp practices" such as
depreciating currencies, imposing restrictions on
the payment for goods they have bought from other
countries and all the other tricks which Nazi
Germany taught the world.]
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- 3 -
3. I know the public would like to hear similar explanations of
the International Bank for Reconstruction and Development.
[(a) The purpose of the Bank is to encourage investors
in countries where capital is plentiful to lend
money to borrowers in countries where funds are
needed but are not available. Loans in which the
Bank is interested will be only for the purpose of
rebuilding industries, public utilities, etc., in
war devastated countries, and developing natural
resources, public utilities and industries in under-
developed countries;
(b) The principal activity of the Bank will be to
guarantee loans made by private lenders, such as
banks and investment houses. In addition, where
necessary, the Bank will make some loans out of
its own resources.
(c) Each of the 44 United Nations will purchase shares
of stock in the Bank. Only a small part of the
value of each share will be paid immediately, and
by far the larger part of the value of these shares
will not be paid at once but will constitute a
reserve to support guarantees made by the Bank;
(a) The liability of each member country is limited to
the value of the shares of stock in the Bank pur-
chased by that country. Irrespective of the cur-
rency loaned by the Bank, or loaned by private
investors and guaranteed by the Bank, each member
will share in the risk in proportion to the stock
it holds.]
4. If there is no such Fund or Bank, will Americans be able to
invest abroad?
[(a) Of course there would be some investment
without the Bank and the Fund, but there
would not be nearly as much, or for that
matter, nearly enough to meet pressing needs.
Investors in this country remember too well
what happened to their investments abroad
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- 4 -
after the last war. In fact, one of the chief
reasons for the Bank is because there will be
so little investment abroad without it. Investors
will not lend unless they are assured of the return
of their money and a reasonable rate of interest.
This is precisely the function of the Bank.
(b) By stabilizing exchange. rates and removing restrice
tions on transactions in foreign currencies, the
Fund also will encourage foreign investments.
(c) By increasing trade and income generally the Fund
and the Bank will promote an expansion of inter-
national investment.
5. What effect will the Fund and Bank have upon moneys owed
to America by foreign countries, such as the debts arising
from the First World War?
[(a) Neither the Fund nor the Bank are being established
to handle old debts. They are not intended to deal
with war debts arising out of either World War I or
World War II.
(b) After the last war this country attempted to lift
itself by the bootstraps by loaning countries the
money with which to pay their debts to us. As we
all know, it was a sad experience and one which
will not be repeated in the Fund and Bank.
(c) Fund and Bank are concerned, rather, with getting
the war torn and underdeveloped countries of the
world back on their financial feet and establish
them again as going concerns. Their tasks are
confined to the opening up and maintenance of
trade and with the reconstruction and development
of the devastated and underdeveloped countries of
the world. These are man-sized tasks by themselves
without attempting to burden these institutions with
the liquidation of war debts.
129
- 5 -
6. I don't that the American public fully realizes what
the Fund and the Bank mean in terms of American foreign
trade. How do you think they will affect our foreign trade?
[General] [(a) Important to bear in mind the tremendous productive
capacity of this country, particularly as it has
been developed during the war. If we are going to
keep these enormous productive facilities in opera-
tion and thus our people employed, it is imperative
that we have a high level of foreign trade. Other-
wise this country will be ripe for a real depression.
(b) Both Fund and Bank are designed to maintain level of
world trade at high levels--much higher in fact
than was ever the case before the war.
(c) Keep in mind that an economically stable and prosperous
world is the best insurance for prosperity in the U.S.]
[Effect of the Fund on American foreign trade:
(a) Other countries, not the United States, have engaged in
pernicious currency practices which restrict trade.
These practices will be outlawed;
(b) Currency values will be stabilized which means that
when the American exporter sells $10,000 worth of
goods abroad he will get foreign currencies worth
$10,000 in return;
(c) Countries having temporary currency difficulties
will have access to the Fund to enable them to
solve their problems without stifling trade.]
[Effect of the Bank on American foreign trade:
(a) Most of the borrowers whose loans will be guaranteed
or made by the Bank will need U.S. dollars to purchase
goods in this country. This will increase American
exports.
(b) When the productivity of other countries is increased,
the people of those countries will have larger incomes
with which to buy American products.]
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7. Would the establishment of a Fund mean more government
controls over foreign trade--does it mean, as some have
hinted--that foreign trade would have to be taken over
by government agencies?
[(a) The Fund would mean less government controls, not
more. Controls over exchange transactions would
be removed and no new controls are required;
(b) The Fund will not operate in exchange markets nor
will it deal with individual traders. It will
neither control nor compete with private traders;
(c) The U.S. leaves its traders free to buy and sell
where they please and operate under the rules of
free competition. This right can be effective only
if other countries do not restrict the freedom we
give our traders. The U.S. can insure such freedom
only through international cooperation. Thus,
rather than increasing government controls, the
Fund is an effective way of reducing the exercise
of such controls by other countries.
8. Will the Bank control or compete with private investors?
[(a) The Bank will not control private investment because
it will act only when its guarantee is sought by
investors, or its participation is sought by borrowers;
(b) It will not compete with private investors, but will
assist them by guaranteeing their loans and will only
lend funds to borrowers who are unable to obtain funds
from private investors on reasonable terms.]
9. Since the Fund and Bank mean a real increase in our foreign
trade, it is clear to me that they both spell "jobs" for
American workers and returning soldiers. What do you think
about this?
[(a) Expanding trade means larger exports from the United
States and it has been estimated that 5,000,000 addi-
tional jobs could be provided by industries which
increase their production in order to supply the
export trade;
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(b) An increase in our foreign trade will mean an increase
in our national income, and as purchasing power
increases, production expands and more jobs are
created.]
10. Well, how about the American farmer? You know I am a farmer
and we farmers need 8. healthy world market for our products
if we are going to raise all we can and be able to sell it
at decent prices.
[(a) United States farmers export about a billion dollars
annually in agricultural commodities, and many times
that amount in exports of which agricultural products
form a part;
(b) A slight variation in the value of foreign currencies
may result in a serious loss to farmers because:
(1) if the value of foreign currencies dropped,
other countries could buy our agricultural
products only if we lowered our prices; or
(2) if we maintained our price level we might
lose foreign markets entirely. The U.S.
market would then be glutted with reper-
cussions on domestic prices
(c) Farmers will benefit directly from the increase in
world trade which will result from the establishment
of the Fund and the Bank. In addition, farmers will
share with other segments of the population in the
general benefits of world peace, world prosperity,
and higher standards of living.)
11. What will be the amount of the U.S. subscription to the
Fund and the Bank?
[(a) The United States will subscribe $2,750,000,000 to
the Fund and $3,175,000,000 to the Bank--a total
investment of less than $6,000,000,000. Of this
amount approximately $3,000,000,000 will not be paid
in cash but will be a contingent liability which may
never have to be paid;
Regraded Unclassified
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- 8 -
(b) This is not a "contribution" and not a "cost,"
but an "investment" in world peace and prosperity
which will remain intact and may even pay a direct
profit to the United States;
(c) The United States is presently spending over
$7,000,000,000 each month in the prosecution of
the war. Thus, our investment in world peace
and world prospecity would be less than one month's
expenditures during the war. This is a small price
to pay for the benefits which will result from the
two institutions.]
12. Is there any guarantee in the plan that we won't have to
put up more billions when the original sums have been
exhausted?
[(a) Under Fund and Bank proposals our liabilities are
limited to the original subscriptions and this
country cannot be required to put up one additional
dollar unless it wants to.
(b) Since the uses to which the Fund's resources are
put are strictly limited, and since it is in the
nature of 8. revolving fund, in the opinion of experts,
a Fund of $9 billion is regarded as adequate to meet
requirements.
(c)
It is, of course, not impossible that the Fund may
at some time be temporarily short of dollars. If
that contingency should occur, the Fund would still
operate in the other forty or so currencies it holds.
Of course we could, if we were satisfied it was in
our own national interest, lend the Fund more dollars--
but this would be a decision for us to make at that time.
(a)
Likewise, in the case of the Bank, we might want to
expand its subscribed capital after it had proved
itself to be a success.
(e)
In no case would we provide more money to the Fund
or the Bank unless they proved to be generally
beneficial, and financially successful institutions
and unless we decided it was in the American interest
to do so.]
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133
- 9 -
13. What about the vast sums of gold that our Government has
stored up? Will they be used in this plan?
[(a) The Fund and Bank provide for a portion of each
country's subscription to be paid in gold. Only
a very small fraction of our gold would be included
in our subscription, however.
(b) The Fund recognizes the importance of gold in the
field of international finance and guarantees to
gold the same position it has commanded throughout
the world for centuries. Thus, under the Fund pro-
posal the value of each member's currency is to be
fixed in terms of gold. Moreover, each country can
buy any currency from the Fund for gold, and each
country guarantees to sell its currency to the Fund
for gold. Therefore, the United States can always
use its huge reserves of gold to buy any other cur-
rency under the Fund agreement.)
14. Will any of these moneys be used for relief purposes abroa
anything like an international WPA?
[(a) The Fund has nothing to do with either relief,
rehabilitation, or reconstruction. The provision
of money for relief and rehabilitation is the
responsibility of UNRRA. The Bank is intended to
finance sound reconstruction projects, but they
are no more WPA projects than are the loans of any
private bank. Thus, while Bank loans will, of
course, provide jobs, loans will not be made for
the purpose of providing jobs.
(b) The Fund and the Bank are permanent institutions
and not simply designed to handle problems of the
immediate post-war.]
15. Someone recently stated that the U.S. would be pouring that
money down 8. "rat hole" if we joined the Fund and the Bank.
What do you say about that?
[[a) To characterize this country's participation in the
Fund and Bank as "pouring money down a rat hole" is
typical of the taetics which isolationists and defeatists
Regraded Unclassified
134
- 10 -
are bound to employ in their efforts to defeat
these proposals.
(b) It is time that all of us focused on the real
"rat hole" of war and this time be prepared to
invest some money in rat poison.
(1) To date, this war has cost the taxpayer
over $200 billion dollars. Before it is
over and by the time you include pensions
and other indirect costs, it will cost us
several times that amount.
(2) To date, this war has cost us 300,000
casualties. Before it is over it will
cost us far more lives and other casualties.
(8) The cost of the war to the world will have
to be calculated, not in millions, not in
billions, but in trillions of dollars, and
tens of millions of lives and injuries will
go down this "rat hole."
These figures show us the real "rat hole" into
which the lives of our men and our money is being
poured.
(c) Against these staggering losses from war, the Fund
and the Bank represent investments in peace. This
country is asked to invest $6,000,000,000--less than
the war costs us each month--in an insurance policy
against World War III. It is a sound investment if
it offers even a reasonable chance of avoiding another
war. It would be a sound investment in peace even
though we were to lose the whole amount. We are
investing in "rat poison" to exterminate future rats
like Hitler and Hirohito before they rise up to
plague us. It is an investment in cleaning up the
breeding grounds of such rats.
Regraded Unclassified
135
- 11 -
(a) However, there is no justification for assuming
that the U.S. will lose whatever it invests in
the Fund and the Bank. Every possible precaution
was taken at Bretton Woods to protect both
institutions against loss and to insure them
against abuse. If notwithstanding all of the
protective measures which were taken, critics
still maintain that our investment is "pouring
money down a rat hole, then those critics are
really saying that any attempt at international
economic cooperation is doomed to failure from
the start. They are really stating that the U.S.
should again don the mantle of economic isolationism
and leave a sick world with no other prescription
than that of Drs. Hitler and Goebbels.
(e) We should not get too alarmed about their outcries
in any event. The public will not forget that
before Pearl Harbor these same voices which are
presently crying that we are "pouring money down
a rat hole," were shouting that we were throwing
our money away in appropriating it for national
defense and for Lend-Lease. These voices are now
just as unprepared for peace as history shows they
were unprepared for war.]
16. If the U.S. is going to be the principal country able to
furnish the goods for reconstruction in the early post-war
years and since this means that U.S. dollars will have to
be furnished by the Bank to buy these goods, why should
we turn to an International Bank? Why not establish 8.
nine billion dollar U.S. Bank for Reconstruction and
Development and run it ourselves?
[(a) Precisely because the bulk of the loans will be
in U.S. dollars and for the purchase of U.S.
goods it is important for the United States to
have an international bank rather than a United
States bank. If such a U.S. bank guaranteed a
U.S. loan it would mean that the United States not
only provided the capital but assumed the entire
risk of loss. When an international bank guarantees
a U.S. loan it will mean that 44 nations guarantee re-
payment to the private U.S. investors.
Regraded Unclassified
136
- 12 -
(b) The privilege of having such a U.S. instead of an
international bank would increase our liability by
$6,000,000,000.
(c) The creation of such a U.S. bank would be a step
away from international cooperation and toward
economic isolation. It would constitute a threat
to the whole world that the United States was
embarking on a large scale adventure into dollar
diplomacy.]
17. What do the Fund and Bank mean in terms of world peace?
[(a) Economic warfare is the forerunner of war. The
Fund and the Bank are an important step in the
abolition of economic warfare;
(b) Economic instability leads to totalitarian forms
of government and all the evils of Naziism and
Fascism;
(c) War torn countries must achieve political stability
and they can do this only if their economies are
stable;
(a) To obtain stable economies, war torn countries need
equipment to reconstruct their industries and provide
jobs for their citizens;
(e) All countries that have been seriously damaged by the
war or have had their economies disrupted can be
properly adjusted to peace only if there is reason
for them to be confident that their economic structure
will be restored;
(f) The maintenance of peace is dependent to a large
extent on the successful establishment of
International economic cooperation.]
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137
- 13 -
18. What is the alternative to not having the Fund and the Bank?
[(a) The way of the Fund and the Bank is the way of
international cooperation. The representatives of
44 nations, after examining many alternatives,
decided that the Fund and the Bank, as presently
drafted, represent the most workable and generally
acceptable plan for the solution of the world's
monetary and financial problems;
(b) The alternative to the principle of cooperation is
economic isolationism which destroys trade, reduces
living standards, and is a major factor in making wars;
(c) The fai lure of international cooperation in the field
of monetary relations will seriously jeopardize, if
not render impossible, international cooperation in
other fields of economic relations. If the world
fails in solving its international economic problems,
it will fail in solving its political problems. The
price of such a failure is another world war.]
8/15/44
Regraded Unclassified
138
8/17/44
RESUME OF DAILY NEWSPAPER EDITORIAL OPINION
ON THE BRETTON WOODS CONFERENCE
Hostility toward and suspiciousness of the Bretton
Woods conference were somewhat widespread among newspaper
editorial writers prior to the opening of the conference
and during the early stages of the deliberations.
As the conference drew toward a close, there was
something approaching unanimity -- excluding newspapers
of extreme isolationist or partisan label -- in the
editorial endorsement of its purposes.
Following signing of the Stabilization Fund and
World Bank agreements, editorial pages in large majority
recognized these agreements as highly significant
achievements in international cooperation. A consider-
able majority did so enthusiastically, though usually
without specifically approving the details of the two
plans.
Many editorial writers took occasion to stress the
fact that responsibility for giving final effect, 80
far as this nation is concerned, to this pioneer example
of international collaboration now rests on Congress,
and to urge that Congress approach the duty in a spirit
adequate to the issue's vital importance to mankind.
On the whole, Bretton Woods has received generally
sounder editorial attention in the daily press than any
other topic of such scope in recent times, exclusive of
the war itself. Many editorial writers were at pains
to explain the subject to their readers objectively in
more or less detail, as well as to comment on it. There
has been no pronounced geographical division of sentiment.
Sniping at the conference, and unreasoned, uninformed
Regraded Unclassified
139
- 2 -
attacks on it, simmered down to comparatively few metro-
politan newspapers which plainly had "axes to grind."
The superior quality of the editorial treatment of
the conference doubtless has been due in part, at least,
to the generally excellent news coverage which it
received. There were numerous editorials commending
the policies toward the press which were pursued at the
conference.
The superior quality of discussion is typified in
an editorial printed July 24 by the Boston Herald, Under
the heading "A Foundation Stone":
"Whatever the fate may be of the monetary
agreement reached at Bretton Woods, New Hamp-
shire, something monumental and perhaps his-
toric has been accomplished. In the midst of
a global war raging in unexampled fury, 700
spokesmen of 44 nations gathered in a spirit
of inquiry and compromise and outlined a
program to stabilize the economy of the world.
That in itself is a notable achievement.
"Although all the groups saved their
exceptions and the plan will have no binding
effect until nations holding 65 percent of
the $8,800,000,000 fund give their sanction
formally, we have had a plenary, even if pre-
liminary session of & 'parliament of man.
This document may not be a keystone or a
cornerstone, but it is at least a foundation
stone of a temple of peace. The nations are
anticipating the onrushing problems of peace
before winning the war. They have engaged
in a grand effort at planetary arbitration
of immemorial disputes. Regarded merely as
a symbol, & pattern of international coopera-
tion, the conference was momentous. Hopeful
Americans will see in its apparent success a
sign that the United States is prepared to
Regraded Unclassified
140
- 3 -
assume hereafter that role of leadership which
our size and power and world circumstances
have decreed.
"To pass dogmatic judgment on the merits
of the tentative agreement would be presump-
tuous. It is 80 long -- about 15 newspaper
columns -- 80 intricate and 80 far reaching
that its flaws and virtues cannot be appraised
until experts examine it minutely. Fortunately,
there will be plenty of time for that, as it
cannot become effective, if at all, prior to
May first, 1945. It must be brought down,
somehow, to the comprehension of the person
of average intelligence, for the reaction to
it in and out of Congress will determine its
advisability.
"Here is a task which should engage the
close attention of educators and all leaders
of public opinion from now on, for many of
the ailments which it is designed to cure go
to the very essence of permanent peace. If
there are eloquent missionaries and persuasive
apostles in the ranks of those public and
private agencies which long for the establish-
ment of conditions minimizing the possibility
of another conflict destructive of civiliza-
tion and Christianity, this is the time for
them to go forth and preach their gospel."
The Hearst newspapers, the New York Times, the
Providence (R. I.) Bulletin, the New York Sun, the
Chicago Tribune-New York News-Washington Times Herald
combination, the Wall Street Journal, and a few lesser
publications were centers of irreconcilable opposition
to the conference and its works. Their editorial view-
points ranged from last ditch isolationism or extreme
partisanship through insistence on "consultative
councils," "return to the gold standard," "bilateral
agreements," "currency blocs," reliance on private bank-
ing enterprise and a few still more nebulous themes.
Unclassifie
141
- 4 -
FAVORABLE COMMENT ON THE RESULTS:
Baltimore Sun, July 17 - "The Bretton Woods agree-
ment on a plan of currency stabilization represents an
important contribution to the organization of the post-
war world."
Christian Science Monitor, Boston, July 17 - The
Bretton Woods agreement on a stabilization fund "will
probably have tougher sledding in the ruts of American
political thinking than anywhere else. Senator Taft
has already predicted rejection of the plan. But that
will not happen if the American people are awake to the
advantages of monetary stabilization. It will not
happen if Americans, instead of suspiciously assessing
the gains other nations may reap from the plan, look
at its usefulness to America and the American standard
of living. What matters today to the American voter,
with a post-war job to look after, is that the plan
helps to create the kind of world market in which his
job is safe, in which his wage scale is buttressed by
mobilization of world credit resources. Can he make
his Congressman see his point?"
Easton (Pa.) Express, July 18 - The stabilization
fund agreement is the "first real test of the interna-
tional cooperation that must be attained if the peace
is to be nurtured and kept, once it is won on the
battlefield."
Chicago Sun, July 19 - "The issue becomes specific:
Are the people and Congress for or against Bretton
Woods? Currency stabilization is a technical subject,
but anybody can understand the almost inevitable result
if some agreement embodying the Bretton Woods prin-
ciples was rejected."
St. Louis Post-Dispatch, July 17 - "If Congress
does not approve the adopted (currency stabilization)
Regraded Unclassified
142
- 5 -
plan -- and the prevailing opinion is that it will not --
it will be derelict in its duty unless it achieves
pretty much the same ends."
Dallas (Tex.) News, July 18 - "Our Congress is not
expected to act on this issue until after the presiden-
tial election, but ratification seems assured. The
issue is not a partisan one
Newark (N. J.) News, July 18 - Agreement on the
currency stabilization plan "is & notable achievement
in international collaboration
So far as this
country's participation is concerned the final decision
now passes to the Congress. It places & grave respon-
sibility upon that body for what it does in this
matter will be taken as the measure of confidence that
can be placed in our adherence to provisions of the
Atlantic Charter."
St. Louis Globe-Democrat, July 17 - "Of signifi-
cant importance is the fact that an agreement of any
sort has been reached. Secretary Morgenthau regarded
it as an 'omen of the international cooperation we may
expect when we sit around the peace table.' To such
extent may the conference be reported as 8. distinct
success." (Sharp criticism of conference previously
expressed by this newspaper.)
Corpus Christi (Tex.) Caller, July 19 - "There is
no reason to believe that & world stabilization fund
operated by and for nations that are conscientiously
trying to put their domestic economic house in order
would show a loss
Any nation that sabotages or
wrecks the great underlying principles (of the plans)
may easily be taking on the responsibility for making
a third world war."
Philadelphia Inquirer, July 17 - Agreement by the
delegates on quotas for the stabilization fund "is 8.
considerable accomplishment for the Bretton Woods
parley." (This newspaper was among frequent critics
of the conference.)
Regraded Unclassified
143
- 6 -
Baitimore Sun, July 24 - The two plans "look to the
effectuation of nighly desirable post-war purposes."
Philadeiphia Record and Camden (N. J.) Courier,
July 24 - The dominant fact emerging from Bretton Woods
was: "There is among the United Nations the will and
the brains to plan and construct cooperatively an
international good housekeeping and orderliness
We
have planned together for sane money. We are planning
in other fields. We are planning early. That is the
big hope for the future
The disagreement on ways and
means was resolved in the spirit summed up by Secretary
Morgenthau: 'Today the only enlightened self interest
lies in international accord.'
Charlotte (N. C.) News, July 22 - One of the hope-
ful signs of a lasting peace is that the nations repre-
sented at Bretton woods "adopted a spirit of give-and-
take, evinced a willingness to make individual con-
cessions."
Louisville Courier Journal, July 23 - "If we fail
to accept the point that the United States must work
with the rest of the world on a common footing, then
we shall betray as sterile and false all our profes-
sions of readiness to labor for amity and agreement in
any other relationship."
Atlanta Constitution, July 24 - "A world grown
cynical in the decade of apathy and appeasement which
immediately preceded -- and undeniably precipitated --
the present holocaust finds new nope in the unqualified
success of the United Nations Monetary Conference."
Russia's voluntary increase in her contribution to the
bank's capital is "a positive indication of the Soviet's
intention to cooperate wholeheartedly for world peace
and unity" and should serve to allay "fears of pro-
fessional pessimists that Russia will remain a post-war
enigma."
Regraded Unclassified
144
- 7 -
Portland (Ore.) Journal, July 22 - The Bretton
Woods agreements "point to a better world order and
constitute at least a step in the direction of more
harmony among nations. In this light, the effort has
been justified."
Manchester (N. H.) Union, July 25 - It should not
be forgotten that "some such machinery as was proposed
at Bretton Woods has a vital relation to world peace."
St. Louis Globe-Democrat, July 24 - With regard to
ratification of the Bretton Woods agreements, "perhaps
no piece of legislation will come before this session
which is more vital to the world's post-war prosperity.
The plan must not be swept aside without thorough
study."
St. Louis Post-Dispatch, July 23 - "By agreeing
upon plans for a world bank of reconstruction and
development, the international monetary conference at
Bretton Woods has completed the work on its agenda and
accomplished more than any except the most ardent
optimists had expected Whether the nations can work
together at the law-making level remains to be seen
Will the same sense of indispensability and urgency
which animated the conference of experts animate the
respresentative assemblies in Washington and London?"
Pittsburgh Post-Gazette, July 24 - Even Congress-
men may need the advice of financial experts before
they can vote on the agreements intelligently
As
far as the purposes of the program are concerned, they
will meet with the overwhelming approval of the American
people."
Detroit News, July 25 - The results of the confer-
ence, "laboriously worked out in detail, are entitled
to be respectfully received as a monumental attempt to
lay & monetary basis for the coming peace era
We
hope and pray that narrow, selfish or partisan opposi-
tion will not decide the outcome."
Regraded Unclassified
145
- 8 -
Richmond (Va.) Times-Dispatch, July 26 - The agree-
ments "constitute 8. venture in international coopera-
tion
for whose success few will fail to hope.
Portland (Ore.) Oregonian, July 27 - As to the
stabilization fund, "the harmony among experts from
forty-four nations ought to clear away doubts that are
founded only upon failure to understand how the fund
will operate, or upon mere suspicion that because the
United States is the wealthiest of all participants,
its resources are being raided." (This newspaper pre-
viously criticized conference severely.)
Milwaukee Journal, July 30 - "Is it too much to
hope that this time Congress will take 8. broad view,
or must we again be humiliated before the world by the
infantile agreements of our Nervous Nellies?"
Wall Street Journal, July 25 - The conference
experts "have produced blueprints of two pieces of
machinery -- the Stabilization Fund and the Interna-
tional Bank -- which are quite simple as far as they
go
The Conference has given us at least a partial
picture of one of the problems ahead, and that is,
after all, something that may be counted worth the
trouble.' (This newspaper was highly critical of the
conference as a rule.)
Washington Evening Star, July 25 - Considerations
giving rise to "considerable skepticism" over the agree-
ments seem "heavily outweighed by the entries on the
credit side of the Bretton Woods ledger." The mere
fact that an agreement was reached is "a hopeful indi-
cation of a trend toward international cooperation"
"It is surely no exaggeration to say, as the Secretary
of the Treasury has said, that we are at the crossroads
and we must go one way or the other."
Regraded Unclassified
146
- 9 -
UNFAVORABLE COMMENT ON RESULTS:
Cincinnati Times-Star, July 17 - Among reasons for
"public apathy" toward the conference, the "most impor-
tant of all is the suspicion that the conclusions at
Bretton Woods will be embodied not in 8. treaty which
can be debated and passed on by the Senate, but in one
of those executive agreements which could be railroaded
through Congress with a bare majority."
Baltimore News & Post, July 18 - The delegates of
forty-four invited nations at Bretton Woods "are con-
sidering ways and means of tapping after the war the
reservoir of Uncle Sam's well-known generosity. The
conference is dealing with a "proposed international
Utopian financial structure." (This is a Hearst paper.)
Providence (R. I.) Journal, July 22 - The bank
plan "ignores such fundamental considerations as selec-
tivity of risks and cautious appraisal of past records."
New York Sun, July 21 - The currency stabilization
plan is built upon "obvious economic absurdities
Unless we can dictate the conditions under which we shall
lend, we stand to lose our gold and our goods and to give
no lasting help to anybody.
New York Sun, July 25 - "A basic weakness of the
monetary scheme that has emerged from Bretton Woods is
that it permits a borrower to be the judge of his own
credit." The currency stabilization plan "expressly
permits currency devaluation" and imposes no rule of
conduct on the borrower.
New York Times, July 18 - "Unfortunately, in the
proposals that the Administration has sponsored at
Bretton Woods, it has failed to show clarity of thought.
The result is a plan confused in its objectives and
hazardous in its possibilities. The delegates at Bretton
Regraded Unclassified
147
10 -
Woods -- above all the American delegates -- seemed to
be obsessed by the idea of machinery."
New York Times, July 19 - "World economic revival
will not necessarily flow from a plan under which tax-
payers are saddled by their own Governments with losses
from huge foreign loans made regardless of their sound-
ness. It is likely, rather, to flow from & situation
in which each country, or each industrial venture in it,
is encouraged or forced to follow sound policies in
order to attract foreign investors."
New York Times, July 24 - The monetary fund final
agreement "meets none of the fundamental criticisms
that applied to the tentative agreement. A vast machinery
is provided which is confused in its objectives The
proposed agreement ignores all basic principles which
must be adopted if such machinery could hope to be suc-
cessful. The American money poured into supporting weak
foreign currencies will be worse than wasted, unless
the loans are made conditional upon internal reforms
in the borrowing nations
The United States must take
the lead in these reforms.'
Providence (R. I.) Journal, July 25 - "In the
absence of insistence that the signatory nations shall
put their domestic fiscal house in order and thereby do
everything possible to assure the stability of their
currencies, there is little likelihood that interna-
tional exchange can be stabilized for any considerable
period
The compromise we made between the alleged
domestic necessities of member nations and the plain
requirements of a soundly-conceived, practically based
exchange stabilization plan faces almost certain defeat
in Congress."
SENATOR TAFT'S ATTACK:
Senator Taft received almost no editorial support
whatever in his attack of July 11 on the conference
Regraded Unclassified
148
- 11 -
proceedings. Typical of editorial replies to the Senator
were the following.
Cincinnati Enquirer, July 13 - "It is very regret-
table, to say the least, to find Ohio's Senator Robert A.
Taft predicting in advance that Congress will not
approve the recommendations of the United Nations Mone-
tary Conference at Bretton Woods
This smacks strongly
of the isolationism and opposition to international
cooperation to keep the peace which was so characteristic
of Senator Taft's prewar attitude
It is greatly to
our advantage if it is not outright essential to have
the world's finances in a reasonable state of equilib-
rium. And to us it seems elemental -- although the
point seems to escape Senator Taft -- that this can be
achieved much better through a United Nations bank and
international monetary fund supported morally or
financially by all the nations, than if we go back to
the 'Uncle Shylock' policy."
Miami (Fla.) News, July 15 - The Taft statement is
the "first shot in 8. new war for isolation."
Corpus Christi (Tex.) Caller, July 19 - "The sub-
stance of Taft's argument and of the U.S.C. of C. is
'let's go back to the system of the 20s when gold was
king and bankers did as they pleased, calling for gov-
ernment support only in cases where monetary credits
are risky.' Everyone knows where that policy led the
United States and the world. It led first to economic
chaos, which fertilized the seeds of war."
SOME EARLY EDITORIAL COMMENT:
The following quotations are from editorials
printed before the conference began work, or during the
early stages of its work:
Washington Post - "The intermational monetary and
financial conference at Bretton Woods opened with an
auspicious candor."
Regraded Unclassified
149
- 12 -
Louisville Courier Journal - "We are to put in some
two and one-half billions of dollars. A quick restora-
tion of trade and economic activity can be worth ten
or twenty times that sum within a few years."
Hartford Courant - "A nation embarked on & sound
domestic policy should have no need for the Interna-
tional Monetary Fund.... In the long view, a premium is
placed on reckless public finance and a penalty on
prudent policy."
Boston Globe - "Important as are the batties now
raging in Europe and in the East, the conference at
Bretton Woods certainly ranks with them."
Winston Salem (N. C.) Journal - "If the United
Nations demonstrate in these and other cooperative
undertakings that they can plan for peace as well as
the totalitarian aggressors planned for war, there is
no question but that we shall win the peace."
Richmond (Va.) Times-Dispatch - Congress should
consider "that should it decide to reject the monetary
program in toto, as a few of its members have suggested
already, the United States would suffer a loss of
prestige from which it might not recover."
Syracuse (N. Y.) Post Standard - "The conference
on world monetary policy now starting at Bretton Woods
may well determine whetner we are going to have an
uneasy peace after the war or one that will last."
Springfield (Mass.) Republican - The conference "is
a wise attempt to get a substantial area of interna-
tional economic cooperation covered before the end of
the military phase of the war."
New York Herald-Tribune - "Some of the basic criti-
cisms are: That the fund contemplated is too big; that,
Regraded Unclassified
150
- 13 -
while most of the real contribution would be made by the
United States, policies would De determined by debtor-
minded nations; that the fund is totally unadapted to
the transition period; that the so-called 'quota system'
is an open invitation to currency and credit abuses;
that the United States might soon find itself having to
face the responsibility for the breakdown of the scheme
if, when its supplies of currency were exhausted, it
refused to put up more; that the sound approach to
stabilization is the 'key country' approach; and last,
but not least, that the so-called 'currency stabiliza-
tion' fund would not stabilize currencies.
New York Journal of Commerce - "The view is widely
held that the parley is tilting at windmills
Los Angeles Times - "Currency stabilization is a
subject that leaves most people cold."
Washington Post - As "insurance against the alter-
native of almost certain currency chaos and trade
paralysis, a monetary fund justifies assumption of
risks by 8. powerful trading nation, provided the risk
is not indefinite or excessive."
Providence (R. I.) Journal - "If the Bretton Woods
conference, by its action, affords evidence that the
fundamentally mistaken nationalistic policies of the
past in the economic sphere will have no place in post-
war international planning, the world will at least be
heading in the direction of economic freedom upon which
the peace and prosperity of mankind 80 largely depend."
Tucson (Ariz.) Star - Without some general agree-
ment, "we will face an international anarchy in finance
that would prolong the period of lend-lease and post-
pone the time when we would get paid for what we would
sell."
South Bend (Ind.) Tribune - "The average American
is finding it difficult to understand the technicali-
ties (of the conference subject matter), but compre-
hension of the vital nature of the stabilization project
is not lacking."
Regraded Unclassified
151
- 14 -
Baltimore Sun - "Monetary chaos is the enemy of trade
between nations
and ultimately endangers the peace."
New Britain (Conn.) Herald - "The outlook is that
the world, as the result of the Bretton Woods confer-
ence, will give a trial to new ideas."
Tampa (Fla.) Tribune - "We try to fathom the issues,
but can't always make the grade. However, we do appre-
ciate the fact that, no matter how complicated and
technical these monetary discussions may seem, they are
filled with meaning for ordinary men and women in all
parts of the world If a workable program for stabil-
izing world finances can come out of the Bretton Woods
conference, all of us will be indebted to the financial
experts, even if we don't know exactly why."
Great Falls (Mont.) Tribune - "As the economists
and financiers argue and disagree and negotiate, few
people can follow the trend of their discussions. But
this we know: That unless the nations of the earth are
able to trade back and forth freely and can avoid
financial and economic warfare, the terms of peace
agreements will be futile."
Rochester (N. Y.) Democrat & Chronicle - "The whole
idea thus boils down again to the question of practical
good neighooriiness, on which we have placed 80 much
stress in this war
If there are some risks in the
plan outlined, they appear to be minor in comparison
with the larger purpose." (This is the leading news-
paper of the Frank E. Gannett chain.)
Davenport (Iowa) Democrat & Leader - "If a way can
be worked out to eliminate prewar barriers to world
trade, then we can all expect to see an era of unprece-
dented prosperity for many nations, including this one."
Regraded Unclassified
152
EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
AAT
WASHINGTON, D.C.
AUG 1 7 1944
My dear Mr. Morgenthau;
I am pleased to hear that Smithies was of some use at
the monetary conference. I was naturally very glad, indeed,
that the conference, and especially the efforts of the
Treasury, were so successful. You have my best wishes in the
difficult tasks that remain.
Sincerely yours,
Honorable Henry Morgenthau, Jr.
The Secretary of the Treasury
Washington, D. C.
Regraded Unclassified
153
TREASURY DEPARTMENT
finished
INTER OFFICE COMMUNICATION
DATE August 17, 1944
TO
The Secretary
FROM
Mr. Haas MA
Mr. D. W. Bell has a copy of this memorandum
and we have discussed it with him.
154
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE AUG 15 -
TO
FROM
Mr. Haas
Secretary M. Morgenthau
Subject Refinancing of the Two Treasury Notes Maturing
September 15
SUMMARY
Two Treasury notes totaling $918 millions
mature on September 15. It is suggested that the
holders of these notes be offered an exchange into
the 1 percent Treasury note due March 15, 1946,
now outstanding in the amount of $503 millions.
It 1s recommended that the certificate issues due
on September 1 and October 1 be treated separately
from the note maturities, and refunded into new
certificates.
There are only three Treasury obligations, other than
bills and certificates of indebtedness, which will call for
refinancing during the remainder of the calendar year 1944.
One of these, the 4 percent Treasury bond, 1944-54, called
for redemption on December 15, need not be considered at
this time. The other two issues are Treasury notes, both
maturing September 15. They are:
Coupon
Tax status
Amount outstanding
(Millions of dollars)
3/4 percent
Taxable
635
1 percent
Wholly tax-exempt
283
Total
918
The holdings of these securities by the various classes
of owners on June 30, 1944, are shown in the following table:
Regraded Unclassified
155
Secretary Morgenthau - 2
3/4 percent
1 percent
Total of
:
note (T)
note (W)
:
two issues
:
Millions
Millions
Millions
Per-
Per
Per-
:
of
of
of
cent
cent
cent
:
dollars
:
dollars
:
:
dollars
Commercial banks
472
74
52
18
524
57
Federal Reserve
Banks, Govern-
ment agencies
and trust funds
46
7
24
OR
70
8
All other investors
117
19
207
74
324
35
Total
635
100
283
100
918
100
(T) - Taxable
(w) - Wholly tax-exempt
Seventy-four percent of the 3/4 percent note, the taxable
issue, 18 in the hands of commercial banks. When the small
amount of the tax-exempt issue held by commercial banks 18
added to this, it is found that of the $918 millions to be re-
financed, $524 millions was held by commercial banks on June 30.
As the maturity date approaches, somewhat more of the taxable
issue will find its way into the hands of commercial banks.
There was also some shift of the tax-exempt issue into the
hands of two large New York banks during June. It is desirable,
therefore, to make a refunding offer which will be attractive
primarily to commercial banks. It 18 probably not necessary
to note again that nothing that the Treasury can offer in the
way of taxable issues will compensate the "all other investors",
who held $207 millions of the 1 percent tax-exempt note on
June 30, for the tax-exemption privilege which they must give
up when the note matures.
With these considerations in mind, it 18 recommended
that the two maturing issues can be refunded most effectively
by reopening the 1 percent Treasury note, due March 15, 1946,
and making an exchange offer. The advantages to this pro-
cedure are:
Regraded Unclassified
156
Secretary Morgenthau - 3
(1) There 1s only a small amount, $503 millions,
of this note outstanding; and only one other issue, with
$489 millions outstanding, falls into the maturity
schedule (first call) in March 1946. There are, in
fact, no large maturities at all in 1946 until December.
Therefore, the reoffer of the 1 percent Treasury note,
due March 15, 1946, would fit well into the maturity
schedule of Government obligations from the standpoint
of the Treasury. At the same time, it would serve to
round out the portfolios of banks which want something
just a little longer than a certificate.
(2) The reopening of this particular note will
keep the interest cost low, 1 percent; it will, in
fact, constitute the cheapest refinancing that can
be obtained, except by the offering of a certificate
of indebtedness.
(3) The present premium on the 1 percent note,
7/32 (bid), 18 high enough to make the deal attractive
to all holders alive to market developments; but not
80 high that it will give them an undue profit.
There are two principal alternatives to the refinancing
suggested above:
(1) The first alternative to this or any other
exchange offering 1s, of course, B. cash repayment.
Since it is possible to make an exchange offer which
is desirable from the Treasury viewpoint, and yet is
attractive to the holders of the maturing notes, there
does not appear to be any particular advantage in a
cash repayment. There would, of course, be some cash
involved in the financing which has been suggested;
but it would involve pulling down the cash balance by
not more than $100 millions, as compared with over $900
millions if the whole transaction is on a cash basis.
(2) It has been suggested to us that these
two notes be refinanced along with either the oer-
tificate which matures September 1 or that which
matures October 1 - all three to be exchanged for a
note. As the maturing certificates amount to $4,122
millions and $3,519 millions, respectively, the total
Regraded Unclassified
157
Secretary Morgenthau - 4
deal would amount, in such an event, to about $5 b11-
lions. For such a transaction, a new note -- and
probably one of longer maturity and higher coupon --
would be offered.
It seems to us that the proposed combination
would be unwise for the reasons stated below; and
we recommend that the consistent policy of refund-
ing certificates only into new certificates be
continued.
(a) Refunding a certificate into a
note would for the first time give an
appreciable rights value to a maturing
certificate. This would introduce a
speculative element, which has hitherto
been lacking, into the certificate mar-
ket, and whet the appetite of certificate
holders for further such exchanges.
(b) The September 1 maturity of cer-
tificates was that offered at the time
of the Third War Loan. It was therefore
all sold originally to nonbank holders,
principally nonfinancial corporations;
although by June 30, about 63 percent of
it had passed into the hands of commercial
and Federal Reserve Banks. The October 1
maturity was issued originally to refund
an earlier certificate issue, held largely
by banks, and to raise additional cash from
commercial banks following the Third War
Loan. On June 30, about 92 percent of it
was in the hands of commercial and Federal
Reserve Banks. Both classes of holders,
the corporations and the banks, originally
selected a certificate as best suited to
their needs; and it 18 best for the interests
of the whole economy that each class continue
to hold certificates. An exchange of a note
for a certificate, in the case of commercial
banks, would result in decreasing their
liquidity and increasing their earnings;
while, in the case of nonfinancial corpora-
tions, it would add a new market factor to
the already-existing problems of financing
the conversion of the economy to peacetime
needs.
Regraded Unclassified
158
Secretary Morgenthau - 5
The holders of the maturing certificates
would probably, nevertheless, welcome an
exchange for a note because of the greater
premium which a note would command. Some of
them, if given a note in exchange, would
probably take the premium and convert the
note through market channels into outstanding
certificates. The principal result, as far
as these holders were concerned, would be to
churn up the market. Others would doubtless
accept the note because of the greater premium,
and hold it, rather than bother to do their
own refunding, even though a note might not
be the best instrument for their own purposes
or for the good of the whole economy.
(o) Joining the notes maturing September 15
in a single refunding with either the Septem-
ber 1 or the October 1 certificate would present
a problem of interest adjustment, due to the
differences in maturity dates of the outstanding
securities, 80 that one, at least, would mature
on a date other than the issue date of the new
security. In all such cases, the possibility
arises that some investors, who would have
accepted a straight exchange at maturity, will
find it advantageous, or simply less trouble,
to elect cash repayment. This was evident in
the March refunding, when exchanges of the
wholly tax-exempt note due March 15, which
required no interest adjustment, amounted to
94 percent; while those of the wholly tax-
exempt note due June 15, which required a
three-month interest adjustment, amounted to
only 65 percent.
Regraded Unclassified
159
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATEAugust 17, 1944
TO Mrs. Kiotz
FROM Mr. Shaeffer CP.
Last Tuesday, during consideration of a bill to provide
for the disposal of surplus Government property and plants,
Representative Sabath made the attached fine remarks about
our Mr. Olrich which became a part of the Congressional
Record for that day.
Regraded Unclassified
160
that there might not be a repetition of
the conditions experienced after the
first war. I recall a conference I had
with a gentleman, Mr. Olrich, who im-
pressed me greatly as a sound, capable,
and experienced businessman, who ac-
quainted me with the preliminary plans
for the disposition of the surplus prop-
erty under the jurisdiction of the Pro-
curment Division of the Treasury De-
partment. It is men of his type needed
in the administration of the disposition
of these vast surpluses and it is to be
hoped that more men of his business
caliber will be found in the organization
provided for under this bill.
Regraded Unclassified
161
August 17, 1944
MEMORANDUM For THE SECRETARY
FOR YOUR INFORMATION
Subject: Recent Developments in the Argentine Situation.
At the time the Argentine Government decided to re-
move its gold from the United States, we adopted the practice
of clearing each shipment with the State Department before re-
leasing it. Each shipment of the $64,000,000 in gold which has
been transferred to Argentina since October 1943 has first been
referred to the State Department in this manner.
In accordance with this routine procedure, State
was informed on August 3, 1944, that two shipments, each of
$1,250,000 were scheduled to sail within the next few days.
The State Department subsequently advised that they had been
reviewing the Argentine situation, that they had not decided
that the shipments should be allowed to go, and that they would
notify us as soon as a decision had been reached.
Meanwhile, on August 5, 1944, representatives of FEA
indicated that they were getting State's approval to a program
for reducing American imports from Argentina and requested our
cooperation in executing the program. In accordance with their
request, Special Regulation No. 2, a copy of which is attached,
was prepared subjecting to Foreign Funds Control licensing pro-
cedure all imports from Argentina except those made by the
United States Commercial Company. This procedure was cleared
within the State Department early that afternoon and the plan
was presented by State and FEA to representatives of the War
Food Administration, the War Shipping Administration, and the
War Production Board that same day.
Late that same afternoon, we were informally advised
that the State Department was recommending to Cordell Hull a
complete freeze of Argentina.
On August 8, 1944, one of the boats scheduled to take
a shipment of gold was about to depart. Inasmuch as we had re-
ceived no further word from State with respect to the release of
Regraded Unclassified
162
- 2 -
the gold shipments, the freezing of Argentina, or the appli-
cation of control over Argentine imports, Schmidt checked
with Collado about the situation. After checking within the
State Department, Collado called and advised that they were
still waiting for word from the Secretary of State on the
freezing of Argentina, and that Treasury should use its own
judgment as to whether the gold was to be allowed to depart.
In view of these circumstances, it was decided, with the con-
currence of Dr. O'Connell and Mr. Gaston, that the gold should
not be released for shipment as scheduled but should be held
pending decision by the Secretary of State with respect to the
programs which he then had under consideration. Yesterday, UP
released a story about the gold, a copy of which is attached.
We are informed that the leak came from sources close to the
Department of State and FEA.
Yesterday we were informed by FEA that the delay in
the application of the controls over Argentine imports was
caused by the fact that top officials of the War Food Adminis-
tration and the War Production Board had gotten to Hull. FEA
feels, however, that they will soon get a green light on this
project.
Omo abchmolt
Regraded Unclassified
163
TREASURY DEPARTMENT
FOREIGN FUNDS CONTROL
CODE OF FEDERAL REGULATIONS
Title 31 - Money and Finance: Treasury
Chapter I - Monetary Offices, Department of the Treasury
Part 138 - Special Regulations relating to Argentine
imports into the United States.
SPECIAL REGULATION NO. 2
Relating to Argentine Imports Into
the United States *
By virtue of the authority vested in me by Executive Order
No. 9193 of July 6, 1942 and Section 5(b) of the Trading with
the enemy Act of October 6, 1917, as amended by the First War
Powers Act, 1941, it is hereby ordered as follows:
Section 1. Regulating Argentine Imports. All of the fol-
lowing transactions are prohibited, except as specifically au-
thorized herein, or as authorized by a license or other authori-
zation of the Secretary of the Treasury:
(a) The importation into the United States from any
foreign country, whether for consumption or exportation,
of any goods, wares or merchandise in which Argentina or
any national thereof, has at any time on or after August
,
1944 had any interest of any nature whatsoever,
direct or indirect;
(b) The importation into the United States, directly
or indirectly, from Argentina, whether for consumption or
exportation, of any goods, wares, or merchandise in which
any foreign country or national thereof has at any time on
or after August , 1944 had any interest of any nature
whatsoever, direct or indirect;
(c) The acquisition, holding, use, transfer, with-
drawal, transportation, exportation or importation of, or
dealing in, or exercising any right, power, or privilege
with respect to, any goods, wares, or merchandise imported
into the United States after August , 1944 contrary to
the provisions of (a) or (b) above; and
*Part 138: - Section 5 (b), 40 Stat. 415 and 966; Sec. 2, 48
Stat. 1; 54 Stat. 179; 55 Stat. 838; Ex. Order 9193, July 6, 1942
Regraded Unclassified
164
- 2 -
(a) Any transaction in foreign exchange, transfer
of credit or payment between, by, through, or to any
banking institution within the United States for the
direct or indirect purpose of acquiring, holding, using,
transferring, withdrawing, transporting, exporting, im-
porting or dealing in, or exercising any right, power, or
privilege with respect to, any goods, wares, or merchan-
dise (i) in which Argentina or any national thereof, has
at any time on or after August , 1944 had any interest
of any nature whatsoever, direct or indirect, or (ii)
physically within Argentina and in which any foreign
country or national thereof has at any time on or after
August
, 1944 had any interest of any nature whatsoever,
direct or indirect.
Section 2. Transactions authorized. The provisions of
Section 1 of these regulations shall not be deemed to apply with
respect to:
(a) any goods, wares or merchandise imported into the
United States on or before August
,
1944 or any goods,
wares, or merchandise physically situated in the United
States on August , 1944;
(b) Any goods, wares, or merchandise purchased by or
through the U. S. Commercial Company; or
(c) Any goods, wares, or merchandise aboard vessels
which have sailed from Argentina on or before August
,
1944.
Section 3. Licenses.
(a) Any application for & license to engage in any
transaction prohibited under Section 1 of these regulations
should be filed in the manner prescribed in Section 130.3 of
the Regulations under Executive Order No, 8389, as amended;
provided, however, that such application shall expressly
refer to Special Regulation No. 2.
(b) The general procedure which will be followed in
handling any application for a license under these regula-
tions will be that employed in the administration of Execu-
tive Order No. 8389, as amended. The Secretary of the
Regraded Unclassified
165
- 3 -
Treasury will consult with the Foreign Economic Adminis-
tration before acting upon any application.
(c) No license shall be deemed to authorize any
transaction prohibited under Section 1 of these regula-
tions unless such license expressly refers to Special Regu-
lation No. 2.
(a) No license authorizing any transaction prohibited
under Section 1 of these regulations shall be deemed to
authorize any transaction prohibited under Executive Order
No. 8389, as amended, or any other ruling or regulation is-
sued pursuant to sections 3 (a) or 5(b) of the Trading with
the enemy Act, as amended, unless the contrary is expressly
stated.
Section 4. Definitions. As used in these regulations, all
terms shall have the meaning prescribed in Executive Order No.
8389, as amended, or as prescribed in regulations, rulings, pub-
lic circulars, or public interpretations issued thereunder or
in connection therewith. In particular, the provisions of
General Ruling No. 4 issued under Executive Order No. 8389, as
amended, shall be deemed to apply.
Section 5. Penalties. Section 5(b) of the Act of October
6, 1917, as amended, provides in part:
hoever willfully violates any of the provisions
of this subdivision or of any license, order, rule or regu-
lation issued thereunder, shall, upon conviction, be fined
not more than $10,000, or, if a natural person, may be im-
prisoned for not more than ten years, or, both; and any
officer, director, or agent of any corporation, who know-
ingly participates in such violation may be punished by a
like fino, imprisonment, or both."
Section 6. Amendment, Modification or Revocation. These
regulations and any rulings, licenses, rules, instructions,
forms or schedules issued hereunder may be amended, modified or
revoked at any time.
Secretary of the Treasury
Regraded Unclassified
166
THE WASHINGTON POST
August 17, 1944
U.S. HALTS FLOW OF GOLD TO ARGENTINA
By the Associated Press
The United States applied a single premonitory turn of
the economic screw to recalcitrant Argentina yesterday, halting
the homeward flow from this country of gold owned by the South
American nation.
It was the first positive action since Secretary of State
Hull several weeks ago described Argentina as a "deserter" from
the cause of the United Nations.
Argentina has been withdrawing gold from the United States
for several months, shipments aggregating $20,000,000 to $30,000,
000. The Treasury's foreign funds control division recently re-
fused to permit a shipment from New Orleans of about $2,000,000,
and it was understood that no further shipments will be allowed
pending clarification of the diplomatic situation.
The possibility of a general "freeze" of Argentina's assets
has been under consideration for months. The order actually has
been drawn, but never issued.
The stop on gold shipments is not regarded here as a partic-
ularly drastic curb. Argentina, in effect, now acquires the
status of a "neutral," and loses a preferred status. Neutral
countries are not allowed to withdraw gold, but this policy is
not applied to allied or associated nations.
Regraded Unclassified
167
AUG 17 1944
Dear Dean:
I have your letter of August 7,
1944, asking to have the assistance
of a Treasury representative at the
Second Session of the United Nations
Relief and Rehabilitation Administra-
tion which will open on September 15,
1944, at Montreal, which representative
will serve in the capacity of Adviser
to the Council Member.
I am glad to comply with your
request and designate Mr. Harold Glasser
of the Division of Monetary Research
as the Treasury representative. We
will make him available to work with
you before and during the Second Session
to be held at Montreal.
Sincerely yours,
(Signed) Henry Morgenthau, Jr.
Honorable Dean Acheson
Assistant Secretary of State
Washington, D. C.
DWB:NLE
Regraded Unclassified
ADDRESS OFFICIAL COMMUNICATIONS TO
THE SECRETARY OF STATE
WASHINGTON, B.C.
25
DEPARTMENT OF STATE
WASHINGTON
August 7. 1944
Dear Henry:
I have written you today requesting the
Treasury's assistance in naming the American appointee,
who will also act as Chairman, on a special committee
of the United Nations Relief and Rehabilitation
Administration. There is one further matter on which
this Department would greatly appreciate assistance
from the Treasury Department.
The Second Session of the United Nations Relief
and Rehabilitation Administration will open on
September 15, 1944 at Montreal. At this meeting it
would be very helpful indeed to have the assistance
of a representative of the Treasury Department, who
would serve in the capacity of Adviser to the
Council Member. You will recall that the Treasury
sent such a representative to the first session of
the Council which took place in November, 1943. The
contribution of the Treasury representative to the
work of the American delegation and to the work of
the Council as a whole was extremely valuable and
.,as one for which we were grateful. I am, therefore,
very hopeful that it will be possible for you to
name an officer of the Treasury to attend the
Montreal meeting.
Sincerely yours,
Area
Assistant Secretary.
The Honorable
FORDEFENSE
Henry Morgenthau, Jr.,
Secretary of the Treasury,
BUY
Washington 25, D.C.
UNITED
STATES
SAVINGS
BONDS
AND STAMPS
Regraded Unclassified
169
AUG 17 1944
Dear Dean:
I have your letter of August 7,
1944, requesting as the Member of the
Council of the United Nations Relief
and Rehabilitation Administration,
that the Treasury permit one of its
officers to serve as member and chairman
of a committee of the Council which will
determine whether each Government asking
assistance from the Administration is
in a position to pay in foreign exchange.
I am pleased to permit an officer
of the Treasury to serve as a member of
this committee and also to act as its
chairman if you BO desire, and suggest
for this purpose Mr. Harry White, Director
of Monetary Research of this Department.
Sincerely yours,
(Signed) H. Merganthon, Jr.
Honorable Dean Acheson
Assistant Secretary of State
Washington, D. C.
DWB:NLE
Regraded Unclassified
ADDRESS OFFICIAL COMMURICATIONS TO
THE SECRETARY OF STATE
WASHINGTON, D.C. 25
DEPARTMENT OF STATE
WASHINGTON
August 7. 1944
Dear Henry:
As the Member of the Council of the United Nations
Relief and Rehabilitation Administration representing
this Government, may I ask the assistance of the Treasury.
Section 17 of Resolution 14 of the first meeting of
the UNRRA Council provides that, when a member government
considers that it is not in a position to pay in foreign
exchange for imported supplies, the Director General, on
the advice of an appropriate committee of the Council
shall determine whether the government is in a position
to pay. A further resolution of the Council determines
how that appropriate committee shall be appointed. I am
attaching for your ready reference sections 16-19, in-
clusive, of Resolution 14 and the resolution relating
to the special committee.
Mr. Pearson of Canada, who has the authority to
appoint this committee has consulted with me and intends
to designate as members of the committee the appointee
of the United States, who will act as Chairman, and the
appointees of the United Kingdom, the Soviet Union,
Brazil, and Norway. In the opinion of this Department
it would be most desirable to have as the American
representative upon this important committee and as its
chairman an officer of the Treasury Department, and I
have the approval of the Acting Secretary in asking you
to agrist us by designating such an officer and author-
izing him to act in the capacity mentioned.
The Director General has received an application
from Greece requesting that he determine that it is not
in a position to pay in suitable foreign exchange.
Therefore, the committee's first task will be to deter-
mine whether Greece is in a position to pay in foreign
FORDEFENSE The Honorable
Henry Morgenthau, Jr.,
BUY
Secretary of the Treasury,
UNITED
Washington 25, D.C.
STATES
SAVINGS
BONDS
AND STAMPS
Regraded Unclassified
-2-
exchange. While I imagine this task should not prove
difficult, this committee, or another upon which the
same American representative would act as chairman,
will have other requests which undoubtedly will prove
more difficult. It is, therefore, of great importance
that the American representative on this committee should
be an official whose reputation and prestige will inspire
confidence in his capacity and impartiality. It is also
important that this committee commence its consideration
of the Greek application as soon as possible so that a
determination of this question can be made before the
Second Session of the Council, which will begin on
September 15.
I should greatly appreciate it, therefore, if you
would let me know at an early date whether it will be
agreeable to you to have an officer of the Treasury
serve in this capacity and, if so, if you would let me
have your nomination of the officer whom you consider
qualified to undertake the assignment.
Sincerely your
Axan Exhenson
Assistant Secretary.
Enclosures:
2 Excerpts from UNRRA Resolutions
Section 16. Governments in a Position to Pay With Suitable
Means of Foreign Exchange
It shall be the policy of the Administration not to
deplete its available resources for the relief and rehabil-
itation of any area whose government is in a position to pay
with suitable means of foreign exchange.
Section 17, Determination of Whether a Government is in a
Position To Pay With Suitable Means of Foreign Exchange
When a member government considers that it is not in a
position to pay as in the foregoing section, the Director
General, in consultation with the Member government involved
and on the advice of the appropriate committee or subcom-
mittee of the Council, shall determine whether the govern-
ment or country is not in a position to pay for relief and
rehabilitation supplies and services. In case of disagree-
ment, either the member government or the Director General
may refer the matter to the Council.
In making the determination the applicant's foreign ex-
change assets and its sources of foreign exchange shall be
taken into account. Although payment for relief and rehabil-
itation supplies and services shall be considered to have a
strong claim on the foreign exchange assets of the applicant
country, due consideration shall be given also to its need
of foreign exchange for other purposes.
The Director General, from time to time, shall review
such determination in the light of changing circumstances.
Section 18. Policy on Relief Debt Burdens
It shall be the policy of the Administration that an
applicant government shall not be required to assume the
burden of an enduring foreign exchange debt for the procure-
ment of relief and rehabilitation supplies and services.
Section 19. Supplies and Services for Which Member Govern-
ments Are Not in a Position To Pay With Suitable Means of
Foreign Exchange
The Council recommends that governments not in a
position to pay in suitable means of foreign exchange for
necessary relief and rehabilitation supplies or services
make available to the Administration in whole or in part
the local currency proceeds from the sale of supplies
furnished
Regraded Unclassified
furnished by the Administration. It shall be the policy of
the Administration to use any such local currency for re-
lief and rehabilitation work, including the care and movement
of oisclaced persons, and for such other purposes as may be
agreed upon with the government. Programs for the utilization
of such local currency shall be formulated by the Director
General and the member government involved.
Regraded Unclassified
A Resolution Relating to the Appointment of a Subcommittee
of the Committee on Supplies
RESOLVED
That the Council approve the appointment by the chair-
man of the Committee on Supplies, after consultation with
the chairman of the Committee on Financial Control, of a
subcommittee of not more than five members, of whom a
majority would be drawn from the Committee on Supplies with
the other member or members drawn from the Committee on
Financial Control, and that this subcommittee be considered
the appropriate subcommittee to advise the Director General
relative to determining whether a government is in a position
to pay, as provided in section 17 of the Financial Plan.
Regraded Unclassified
174
AUG 17 1944
My dear Dr. Kohn:
I regret that my recent absence from
Washington has occasioned delay in my reply to
your letter of August 4, 1944, in which you in-
quire about the relationship between Mr. Eri
Jabotinsky and the War Refugee Board.
I have taken this matter up with the
Executive Director of the Board, who has confirmed
to me that, contrary to the impression apparently
given, Mr. Jabotinsky is not a representative of
the War Refugee Board.
The War Refugee Board, as a matter of
policy, works closely with all private agencies
in the refugee field that have contributions to
make toward the tremendous and heart-breaking
task of saving refugees. It cooperates with
Zionists, non-Zionists and anti-Zionists, with
Jews and non-Jews, with liberals and conserva-
tives, and with both large and small groups.
Representatives of many of these groups
carry on activities in several of the neutral
countries. In Turkey, for example, there are
80 many representatives of private refugee agencies
that the Board has had to undertake a coordinating
program. One of the representatives now in Turkey
is Mr. Jabotinsky, who represents the Emergency
Committee to Save the Jewish People of Europe.
Regraded Unclassified
174-A
- 2 -
As you no doubt know, the War Refugee
Board is an organization set up by Executive
Order of the President, a copy of which is
enclosed.
Very truly yours,
(Wigned) H. Morgenthau, Jr.
Dr. Hans Kohn,
Smith College,
Northampton, Mass.
Enclosure
8/16/44
Regraded Unclassified
HOPEWELL JUNCTION
DUTCHESS COUNTY, NEW YORK
TELEPHONE: BEACON 211
Any 10/44
Mydeav MaPalle,
Du accordance with your
suggrstion are The phone Dam Enclusing
This 1, Hru for my hus hand from Part. Rohu,
Jo That you call pripare au ausurn
to he rigurd on his REturn.
Id V4rs Prossor H can
QET away after deps the she would
happy to visit Dr REFUGES Camp
with me, but Dheis not sure just
har Fature plans. IthinkallRe
how publicity Rad you has had hasbra excellant
Sincerely yours,
Shirt B.
SMITH COLLEGE
NORTHAMPTON. MASSACHUSETTS
DEPARTMENT OF HISTORY
private and confidential
August 4, 1944
My dear Mr. Morgenthau,
I receive regularly from Palestine a
weekly letter, published by Zionists from
Germany. I have had a long and very intimate
knowledge of Zionist publications, and I may
therefore be able to state with some authority
that I always found this paper the by far most
serious, most responsible and level headed
Zionist publication.
I am enclosing the first page of the issue
of May 26 where I marked one of the editorial
comments, and I would be very grateful 1f you
would be able to give to the matter your
attention.
As you probably know there is a very active
group of extremist Zionist nationalists, who in
their philosophy and outlook are closely akin
to fascist nationalism, Some of them have now in
Washington founded a Jewish Committee of National
Liberation. Others in Palestine have carried on
for many months a campaign of ruthless terrorism,
reminding, in deeds, thoughts and language, of
the worst excesses in central Europe.
The founder of this movement was Vladimir
Jabotinsky who died a few years ago. His son
Mr. Eri Jabotinsky is now a leading member of
the movement.
The editorial which I enclose expresses
its astonishment about the fact that Mr. Eri
Jabotinsky has arrived in May by airplane in
SMITH COLLEGE
NORTHAMPTON. MASSACHUSETTS
DEPARTMENT OF HISTORY
Palestine on his way to Turkey as an official
delegate of the American War fugee Board,
an institution which the editor of the paper
believes to be under the direction of the
Secretary of the Treasury.
I do not know anything of the background
of this "a "fair", but I thought it advisable
to bring it to your attention, As I said above,
there is no Zionist group more responsible and
more conscious of its obligations in the present
international situation than the group writing
the editorial in question.
Sincerely yours,
Leam Hohn
Hans Kohn
174-E
Translation of an extract from "Mitteilungsblatt,
Alija Chadascha, Tel-Aviv, 26 Mai 1944"
We Jews sometimes think of ourselves sufficiently high to con-
sider critically events occurring among other peoples and to express
our condemnation of them without realizing that all peoples appear
to be subject to the same "laws of nature," our own people included.
In our midst, too, the most bizarre things go on against which we
seem to be powerless, since they have arisen from conditions which
we eyed blindly and since we did not consider our own thoughts and
deeds in a sufficiently critical light.
There are movements now spreading in our lives in this country,
which cause all of us deep concern. After a pause of a few weeks the
terror has again broken out. Last week we lived through the crazy
adventure in Ramalla, in which all participants have unfortunately
escaped. There are again threatening letters and "death sentences"
which are publicly posted in Tel-Aviv at all street corners. The
"fighters for Israel's freedom" boast publicly of the murder of two
Jewish policemen. The "Haaretz" has justly complained a few days ago
that there seem still to exist people in this country who protect the
terrorists and such others who let themselves be blackmailed for money,
since it is apparent that such things require money. Something else,
though, should be added in this connection. It is quite possible
that these people get money from abroad as well. True, in the case
of such secret groups there are no clearly discernible organizational
boundaries, but just this week it became known how strange groups
abroad, spiritually related to the terrorists, do their work. Special
Regraded Unclassified
174-F
2
attention has been attracted by a letter of the Dutch-American
journalist, Pierre Van Passsen, a. man who has been radically pro-
Zionist for years, but who 1s apparently naive and never well
informed about the real situation; like many other well-intentioned
and ignorant people, he let himself be misused for all sorts of
propaganda and in recent years gave his support to the revisionist
committees in America which appear under different names. These
committees which attempted to exploit in their own political interests
the sympathy for the European Jewish catastrophe existing in liberal
circles, apparently have received a lot of money, otherwise they
could not have permitted themselves the luxury of gigantic advertise-
ments in the large American newspapers. Van Paassen writes now in
an open letter that he has found out that these revisionist committees
are nothing else than exponents of that notorious "Irgun Zwai Leumi"
in Palestine which distinguishes itself by acts of terror, and that
they have made use of the internal political situation in America to
receive the help of certain reactionary Senators. Thereupon Van
Paassen resigned the chairmanship of the "Committee for the Jewish
Army"; identical with this committee is the so-called "Emergency
Committee for the Rescue of the Jews of Europe." The very name of
this committee shows to what extent the Jewish need is being abused.
The matter is getting crazier still; a representative of this
committee, the young Eri Jabotinsky, came one of these days by air-
plane to Palestine and is on his way to Turkey on an official mission
Regraded Unclassifie
- 3 -
of the American Government. If one knows how difficult it is today
to get a seat on an airplane and how many important trips have to be
omitted, one holds one's head and one asks oneself what is it all
about. In a "press conference" which the young man has held in
Palestine he declared that he is going to Turkey as delegate of the
American Mar Refugee Board, an institution which is connected with
the American Treasury, headed by Morgenthau. Jabotinsky said that
the creation of this Board is due to the propaganda of the so-called
"Committee for the Rescue of the Jews of Europe", which has been
founded by a few young Palestinians in America and which has
addressed itself to the American Congress and the Senate. They are
the same young mèn whom Van Paassen names as the representatives of
the Irgun Zwai Leumi. Normal Palestinians who suffered under the
terror of the Irgun Zwai Leumi will not understand how come that
agencies of the American Government should get the idea to deal
precisely with this group.
Since we have reached this chapter, we must state that our amaze-
ment over the indirect and often direct furthering of these groups
goes still further. In these days when, because of the war regulations,
it is very difficult for most people to leave this country, people who
stand very near to the above mentioned organizations travel abroad,
-
even for purposes of propaganda trips and fund raising campaigns. At
the present time, for instance, the Jewish public opinion of South
Africa is being agitated by such & Palestinian delegate. That such
Regraded Unclassified
- 4 -
actions are possible, appears to many as a paradoxical sign of
indirect furtherance of a subversive group, confusing and irritating
for all those who consider the furtherance and financing of such
groups to be undesirable and who should be entitled to believe that
all responsible elements share this opinion.
The comedy in America has borne even stranger fruits this week.
A "Jewish Committee for National Liberation" (the name is chosen in
imitation of the French Committee in Algiers) has announced that it
has purchased the building of the former Iranian Legation in Washing-
ton for $63,000, in order to equip it as the future legation of the
Jewish state. Where these people got the money is not revealed.
All the responsible Zionist groups in America have turned away from
this committee. The Jewish people and Zionism are becoming ridiculous
in the eyes of the American public. This whole story could have
become the subject of an adventure film relating how seven young men
led all of America by the nose.
The matter only becomes difficult to understand if one hears that
a member of this committee functions as official American delegate in
the Near East. One must fear that this sort of thing heightens the
prestige of these adolescents in the eyes of inexperienced people and
that it renders difficult the work of enlightenment of those who try
to turn the youth away from the ways of the Irgun Zwai Leumi and of
related tendencies.
Regraded Unclassified
1'152
Palgin
mu'T'
The
Anny
naih
Mass
MITTEILUNGSBLATT
O.B.G.
HEADACHE
TOOTHACHE
ALIJA CHADASCHA
NEURALGIA
JABRGANG 8, Mr. TEL-AVIV. MAI 1944 I'En
In dieser Schawuoth-Woche
Am Vorabend grosser Ereignisse Abenteuer in Ramalla und Komödie in Amerika-Aufruf an Mädchen-Drei Sechzigjährige
viele andere wordwollende und um-
der
amerikanlechen
Registrag
not
ATS
also
and
als
WALF
(Flugar
Die divies
and Juder meint, date der Befrei-
be-
with des Dommet No, rines
wissende Leute, für atterhand Pro-
die Idea certailen, sich
092 dassa de war, um
Puinter, you dem wir creditor
the aus du "freig" Austries
puglinda missbraction Hean ned
ort mit disgre Groppe
währt. Kin Tell der judischen AT*
la den Jahren den unier
Da wir achon bei dem Kapitel
int jobil in lialien litig. Num wird
dess or guientige Knischridengen
witdre Trielen au grainties,
does belwo wir bills Hecht, TON
verschledenen Namen
sind, so milisero wir featatelles,
mitgetsilt, dans els grusser
bringin wind. das
dass dinses Erstaunto Bluer Indi-
darf nach ausätzlichen Keifino
Hebe - be-
Frelbelt to reden, Leider sher
revisionistlechen Comiters la Ame-
gründ - der deutache Dichter
Arm. nir Answicken einer selection
risa,
sulme Understätzung Beh,
rekte and bäsfle sogar direkte
bestehd. c.aso ATH-Maders not-
Zicht ansiclée
Férderung disser Gruppen noch
den (fir Isalizo Sex in
in divere Jahren des Rebrockens
Direct Komilieve, die das In libera
wir veriorni, out de Lister
les Kreisen berrachende Milleid
welter reicht. In direct Zeit, in
Dienst tun als Beamle, in Spinds
rue Responsation and
mit der europälischen Juden-Kata-
ber - für die meisten Menschen
lers, als Materialserwoiser and
linbkell def Satur - arbien. En
no la violeti Fr.
Worlien hover, die for MII:
die just des
infolge der
als Chauffere la England sind
anophe für thre potitiaches Zwecks
Monselton echieve Leiden
Phon ind sich addressivo
BIL'
subr schwer lat, das Land == ver-
admiliche Praties und Madches
sof- ---- - Works
lassen, relaes Leute, die den
territo für dem Kriegslivent
in
and Bargen bringen worden, vine
soch visi Gold bekom-
Ernte des Todas im alout - de-
Inderson
ave, deso social belien sie eich
nannien Organizationen sehr nahe
dieser ader Jener Form matill-
men, die without TO Sicherheit intern,
in politischer Mission Ins
alert. Deber wurde vin Appell as
sight des Hangment In
Austand, ja, such EN grossen Pro-
Palistine general die
night, gruene Werle sú machen.
serate in des grown amerikani-
wirh 2000, die die
Wir Judro manchiner uner-
activité Zeisungen intern known
pagandatouren und
Locks In official
Upfer so bringen before werdent
bet
Vas Passern achroild jetat la
Gerade jetst wird zum Belapiel die
les belief es, dans
judiache Ouffentlichkelt
ATN la Italian
empfinden deukhar den grossion
anderen Valuera kritish as be-
Offenen Brief, et habe ent-
Wasdel der Zeites Ela Blord air
deckt. dass diese
TOR einem derartigen palidational-
TUN allen
Chickles und
und Kreating
se spricken, abus lima darnier
scien Delegierjen
dentiich geschäist werden. Rine
Komiters sichts underes stad ate
die Well, Krimnern wis una
-- getwo, dass pG.
Date soleho Aklisoen maglish slaid,
Ausali ven theen set
Expenentes jenes
due post - Jahren aw Kar
erhelnend alto Villaer gleichen
Ewal Leason in Patiention,
efucteint Virien nis ela paradoxes
in elder Schule an der Admissischen
incrupho - Planders benin-
unterlingen,
der pick durch Terrorable aux
Zeichen elser Indirekten Finde-
Kusta, sudité in in
brank über dir se-
Auch tel
subject, and dass ale in Amerika
pass einer subversiven Gruppe,
Neepel. Ceberall, so being 19. wor-
receimed and für
den - Decunders outs
www.lichen Volker.
sus gobro die
die Politic
Damale gain das englische Yolk
Dinge THE area die wir coschet-
date - die Ellife En
alle disjenigen, die elne Förderung
generamen. Wir hoffen, dan (IFF
die Antwort YOU eleer
nend stad, will mie -
winner reaktionärer Senstoren ou
und Financierung dieser Grappen
Appell in Palastine elce grint-
Astwort, der prete Tur-
für überwänsebt balies and
runde Resonant finden wind De
entain
orbation. Van l'assure leato
pala class alch suffettended But-
den eind, gignature wir
des Versita le dem für
cignallich annehmen minutes, dass
rade is divisen Tagen wird -
die, grapvist 100 dess damate
alle verastworiliches Paktores die-
bewunt, win glückBeb vo le
billed narvo and unwer elgenes
die Indische Armed" airder: Idem
opthundenen Kräften,
- tellon,
diesem Lande inten, vering TET-
und Tue kriflech
Dech suit diesem Komiton has das
school 100 Kriegsubein. und dive
stelle wecheen Bonnen und Reute
group
für die
Die Komidie in Amerika hat
arbilité asserv durt
elt überlegent in
Betting der Juice Europas".
diree Worbs noch relisament
Non insulan eich bue The Lando
mehr as letsten, -- die
de Kukunft likekt. Wir eleben,
Heben - dem Xammu disare Ke-
Princide grantigt Els Judisches
in Leben Bewegongen
lichkett ist. Re us
Wess nirbs alive truet, Jetal us.
minuse gribi befor, within Nine-
Komiten für Nationale Befreiung"
Zwelfel, date dinen Leistungen Car
millelhar vor der nach
die VIII alle tirt
branch bine mit der Judischeo Not
(der Name Est gewäblt in Anleh-
Sara share Passe FOB wesign
die Sache who dass
Ee WIND feeslich beine
getriehen wird.
bung an das Komi-
Wuchen livil der Terror winder aus-
une storm Para MAINE
bichier Weg sein, de der Evint
ter Im Algive) bet milgetellt, dass
Ale Zeit bat, en etch
Wir eriebtee vertage
Ille Sarbo wind alser nuch totler:
des Tereinigten aven
PM des Ovivände der früheren Irs-
mit after Millein EN
Works das verricate
Kin driver Komities
für die Zubunft - - also
planterm Gesandschaft in Weshing-
Derma wird de
410ck to Ramella hel dem indre
are jungo Kri -
die Inversio in are **New
for für 63,000 Dollar
Investory subwere Opter kosten, Bise
alle Tater - gibt ww.
dieser Tage kan Passe in Par
York Times" and
better, tin - also könflige Grandi-
wind and des betruffenen Ländern
are Drabbrieft und
-- und legist in of
neb asch ats In Pa.
what des Judenstasts clarorics-
school Alser der
die in Vel Avir an allen
flairibe der americant
Instina. Bier let der on, no -
ten. Woher die Leute das Geld
Americant des Enterbridungs-
selien offentieb sugrichingers MEF-
arbre Registrang such der Tir-
on Ingred relate LANA, was sin
baben, wind nirht enthail. HAME:
des, Die Kimpler für
Winn may wills. wie school
:- abricber Leislung and and
plus um Europe, det Le disses
Hche remativortillen
amot suf allen Selion, rue West
Proteit? rúbera wich offentiks
hente lat. surb nur sines Plug-
nationates
Gremien Amerikas slad veo dirmi
and net, Nurd und sur -
des Marden an card judishen Per
glata au und where
grn kim.
Kombine abgerückt. Das 20dische
bereits angetangen bail,
(lainten. Mill Bwai wandte airh
wirhties Retson
Volt and der wind In
dirfic, let nicht swelfethaft.
diving Tape dagagen,
greift man sich an den Kept and
Der Enfail files en. dies - des
does e Immer north
frugt sich, was de signallich 100
den Auguo des
Deffentlicheit
Die
sem Wachewnde metrere sech-
Iss Lande die sich
Welst is einer Konfor
Geschichte knoote das The
signte Geburtslage gefeiery werden.
Für ans Joden will das
Ber arbitared anneb-
reas", die der Maan in Par
me the cineo arin.
An dover wir in
Post vine besendure Erlenerung
- ded autche, als Cield or-
Instine subjett, crbiarte er. et relee
wis abilien Jonge Leute pain Ame-
enter Holko des Manner or der
daran, dos each protein
prisent lasses, dess - jst blar,
als Delegierter des
nka an der Xase
Krainher und Mildner swelle Der
kampt die Frage des ge-
dass se diverse Dingle Geld per
War Return Board each der Tar-
Unverständlich wird die Sache
destarber
stellt wird. Warre eind with aux
Mrt. live star - neb eln as-
MEL, elser Institution, die mit dem
grat, wean mas Beirt, dass ein Mit-
gewere and use such Beute one
Amgrica gefishre worden? Die
derow Kapitel we
amerikanischen Bebatient ver-
glied diverse Komiteen ale officiel-
verbusire let! Run Blumenfrid.
Antwort kam destrict INTORE: "The
den, 20m Ini sehr lescht
bunden Ist. an dessen Spitze be-
ler amerikanlecher Delegierter im
Bein Griverising let for was da
aux mie selh ein Reich von Prie
dass diese Levie auch Geld aue
&santlich steht. Ja-
Sahen Osten fungiert. Man musa
Asimes 248 einer
7g da Bettiges Valk." Commit
dem Austand Xwar gibt
totinsky die Errichtung
befürchien, dase se etwas das Pre-
Bücksches ther du 35
di mas nicht betreit. Man lime-
- bei derantigen gybelmen Ver-
dieses Board not ein Verdienst der
alige dieser Jonglings bei unertab-
Jahre sine Zele der
minimi demit die ackwere PRINT,
bilades belan kist festatellbaren
Propagabde des
- Leuten beht und die Aufäll-
Ban wie ser winige ENTRE Wir
mit Freihelt das Richilge
organizatorischen Abgressangen,
miless für die Retiung der Joden
rusgarlielt derei erschwert, die
widness dem chemall-
Prothell verpfichtet.
where gerade la disert Woche worde
Europes", das von stalgen jungrom
Mcb between, die Jugred ven
EPR der LIOGOA, als
Dieses Dewnsiterin howegt heute
twicent, weiche merkwürdigen den
in Amerika
des Wegen des Irgun Zwal Leami
kicines Zeichen unserer Deabhar-
die besten Gelster niker Volsee der
Terroriation Grup-
del worden arl and sich as den
hell and Pressitschaft, elmen Tell
und vun terwandlen Tendenses
Welt. Blu emilion delhi Weg. um eich
per im Ausland lhr Unweren trei-
amerikanischen Kongress and Be-
namer healigen Artigation, in deni
absobringen.
each dom Sing dre Errongenen
MIL Anfachen erregte
nat gowandt habe, En bundelt
Messchen am Worte kommen, die
Wordig Ell erwelsen. No kemost above
eln Unlef des
wich Mer em disselben jurgen
deo gasera närr einen Tell
für des Menschen (and für die
alschen Journallaten Pierro Yas
Leute, die Yes Passage als die
In den letaten Tageo wurde die
Wegre mill the P
Vilibert) sirkt our darant an.
Passent, sines sell Jahren radikal
Vertragemaleule des Irgan Swall
Arbeit der jödischem Frauen and
gangen stad. Wir glashes, dans
besaure Einrichtungen #11 arbatten,
pro-siontatiaches, above anscheinend
Leami Normale Paid-
Midelen, die to militárische Por-
liber das Personiche bloase n
wondern such beaser EU worden.
naiven and über die wirklichen
stinement, die unter dem Terror
mationes singrizeien stnd, mean-
such für Anssesstrbende, die die-
Ween die Menschbelt aus dem
Zusemmechänge alemals recht to-
des Irgun Ewai Leunl leiden, wer-
fach besonders gerühmt. Diser
eem Krise nicht angebilien, und
generatigen Blutbad nichta termt
formiertes Mannes der etch, wie
den sicht wis Organe
Praneo haben eich all
9. 1)
Regraded Unclassified
Mr. se. MAI 1644
Wendet Euch mit
Dr.
and
Hav
Flack-
-
in
der
R.T.A.
an die Mitglieder des
mana eled aus London much
Interiore sess, does if
BADIO TRUNSICIANS ASS. T.A., P.O.B. serve
effor und betwen der
is des Tagen sime the
Excluiive der Jewish Agency Be-
approved mill dom District Code
times - Der
missifore above dim Wabiteredo
dem New Vorker Das-
- die elher Wahl-
Der Jerusalemer Kehilla-Skandal
newberg, let su elnem Beauche has
sommission für die Iriah THE Tel
Pallation und hat
AVIV haben werde. in Humal
In der vorigen Woder beachäftig
such heute aleha danach la disner
in since Zusammenkuaft der Jeru-
(ine feed cline auswordenlich
le sich nachdem surá die Mapol
verfahrenen Nituation jadech -
kides sich die Allja Chadesche
salemer Journalisten Buricht ther
der "Allja Chedasche" lat
stark beauchte
--- Besion sine ai-
die judische Lego in Amerika et-
and Ihre Vasd
sebure und sur Rettung der Kehil-
statiol. J. Heftman, der Chef-
long given die resktionêrve Mass-
siedergelngs hat - die guamle
in berrit, eine geordarte Pub-
redakteur des "Habaker", wurde
nahmen der Orteverwaltung stalt,
reng der Geschäfte für else Deber.
behräische Presso in
no oberachmen, mit dem
der Tol-Aviver
site elsen Grasstell der Bevölke-
and Leitarithein mil der Bituation
discigen Kiel, when Jede versign-
winder-
FUNE des Wahirrehten termiten
in der Kehilis Durch
rang Neumables
grownhit. Das enrolige Land:
will Für die Allja Chadasche
des Vurgeben der Allja Chadasche
Diese Bereitschaft hat sur Var-
As 18. Mai überfieien Mitglieder
sprach R.A. Have Kaufmann. Der
dans die
Ist - erreicht worden, dara welle-
Gruppen oder mindratens eine -
des "Ingun Ewal Lean!" die Ra-
Progressive Block in Choders ver-
ste Kreise jetat vielleicht doch ein-
reichende Annahl ven thoen, was-
discription in Ramalish Bie waren
leogie die Abbations von Wablen
tasiées beginen, dass man Prob-
red dieser mit una
les Lastwagen aux Per
in die Mortah Meberit, die anit
leme unserve affentlichen Lebena
susammenarbrites, sich -- den
wirhtiguies Kommissionen betelli-
rach Tikwah grkummen, Un der
scht Johren Im Amt let, Der An-
nicht our mit juhrolangen Ver.
EYES und vor altrai sufert mit use
Verfolging durch die Policei su
trag wurde van der Mehrheit ab-
schiebengen, Erpressing und
susammer eine neuse Wahlkommis-
Schawuoth
(Ports,
Y.
8.
1)
enigehen, batien sie die Strasse mil
gelebat. Rechevelb beabsichtigt,
Kubhandel 10sem kano. Allgemen
sion bilden.
für die jungeren Mmscheo, die
Mineu Tersportl. Iler Chauffer
das Statut FOR Hamat Oan mit
and die Empirang abor die Cufa-
Der sinalge Weg sur Ordnung
aux anderen her.
der der Kehilla
und der Turnote eines Taxi, das
elnigen Aundersagen Ell überneb-
highelt due Vani Leami, der vines
and erhie demokration Newah-
gekommer wind, wichtle súlas kuma,
not slue Mine auffulir, warden
men, womit such in dissem Ort
grossen Twis der an divo
len grains den Patzungen der
efface Elshlick - bekommes in
Die Ungster konn-
ela Grossiell der Bevilkerung um
gebaltharen LEARL
Korset Jisrael, Diese Seuwahlen
Jeno Atmosphare, aux our FOR
missen com ersten genetzlich müg-
im live Abeicht, das Redinsen
avise demokratischen Hechte g
in cult der
Behen Termin statifiedre.
as Johren der dentsche Electronic
dong all nicht wi-
brocht worden warde. Im KI-
Landwelelting has die Alija Cha-
hervorgewachten ist, demon
Indem die Allja Chodascha the
wirklichen, - ibere alwe,
loss Negbe wurde ela Bruanen mit
desche Jurusalem Ihre Methugnah-
Bereitschaft sur est
bende Werle such Mate liter to
sorkehot all fivire. Im
eloce von 100 Kabik-
me an den Vorgingen in nachste-
Geschäfte quaspricht, erhiärt de
discom Landa tEm ihr Wirkwor
members mill der Affire wurde ele
unier pro stunde in Betrieb
hender Erklärung. die affentfich
nochmals ausdrücklich, dans die el
wht kimples.
setat. sturmachäden balen die
teloign Verantwartung für den jell
Ani to Will-
plakatiert wurds, will folat prüst-
grachaffenen Zustand
Ela YES Bummer
rend sich der Jrgan Zwai Leant"
Kiburtin Neve Kitan, Tirst Xwi
siert:
tragen, die die Wahlen
frid Ind, não sich May
to Afficied mil diser Tal
und Sde in Emek Both
haben, sewie diejenigen, die durch
-In dom letsten Plakat. das -
Bred etail Dichter und Kindler
overant, bil de Stero-Gruppe der
Sheam am 11. Mal critten. Die
the actwächliches Verhallen grant
Vasid Makehills in des Strassen
über eine less
YOU Weited. due Product joint
la gloicher Form
Brute, Welnberge und Gebänder
Jerusairms angewridagen wurde,
mer weitergebende (temoralisierang
any
dont die Ermordeng der
worden betroffen. - Das përdiche
helest - würtlich:
herbeigeführt haben.
im altre I'me wigh WAT and
Flesch and Golemits our
Email Chefer wind mis der Hospital
..Nach fast sweljährigen
Juden nem mit liet
is der das Indian eich tumpt
the Kanta gobt. the Errichtung
Petark Tikwah-lielfa
achwierigen
der Errichtung einer grandheiro
gen has der Vasid Hakabilla be-
Kebilla, bei der
würker als das domisterende RE
riset
durch espe verbunden seln,
schlossen, die Neuwahlen nicht
deman, was ... Grande gerichtet
will esta Aurti sels IN
schaft für die Xell nach dem Krie:
derem Berichtung durch den Solvi
mehr EM vertagen und alin unter
worden lst, bei der des
atten Emetänden am 24. 1jar die-
ain Sinch insurer (in
a plant de Krvis FOR júdiachen
Bonch begansen wurde.
Kehills!"
- Jahres (17.2.44) absubalten.
whichto derwiten as Jubré tired
les hand Man beals
Die rines Kinderderfen
Der Vand Hakebilla aletat sich
Die Alija tal lendi,
ist via typischer Wenijude, Nr
dell Anschines an etne
für noo Kinder NOM Gewerbesche-
genötlet ,der Offentficharit su or-
is der lare
dase en kelse Mägtichbelt
dela die Degreeurg ult dem Del-
absliche die vur
Ivn und verschladenen Wirtschafte-
mehr siebt, selar Arbeit forten-
Arbeit our Verfügung 20 stelled
und die la
our Zell mit VAB
wind TOD der Agudal Its.
setzen, da selne Amteria schon
um durch sufortige ilem
die grandlegenden
100,000 Prood to Angypton gegrün-
and geplant. Seche Todesfille
selt swel Jahren abgelaufro let."
cinsigen ARRIVER " Enden, der will
infolge waren each amt-
Es dem van der Wahlkammission
Nelative frücklier war-
del worde, and die Eroffang eimer
Kustin
festgraptzion Termin wurde sur
de. Bir las du restrur Grin, der
privation
Richen Missellongen in der letaten
elne Liste eingereicht Liste
des kenn
neils des Ellagon forseble
Stagded Masdi Amble Der Dia-
Woche su verseichnen. Ee bandels
der Allja Chadaschs: thre Kandida-
sie die
Ne doss him der just
eleh durrhwer non Araber. Der
ten getten damit nach dem
ist hack neumwo-
fur diesen - wird de
als gewählt.
orders queeter THE
dearticher Dower die
Jischew unfasst nach einer Bta-
Weg gehen and WPIE the
Diese Taturlien terrisen dem
atwas under stehen plu givill
worde in alive Betrieben to
Listik der Juwish Agency per Ende
Jerusairmer Jischow mij allm
mis und agril.
Under Permen, nämheh etc. Für-
Tol-Avic und Jerusalem
1943 031,000 Menarbra. Die For-
Klarkeit, dass die Allja Chadacter
chen van andure Salton
judischen Gettice Wir
winder 1351 Ton-
derumgen der Labret narb elnem
ernathaft and mit guiens Willen
an die Angelegenheiten der Kehil-
norh - stil in
verdenken Prod besonders wirh-
- bet die
Monstegeball waren
is ist, dans sie "
marbé wentere. Finan
lige
mill
- Jahre
Deprestand von Deraing in der
ernst nimmi mis den Grundsätzen
nicht, se with all dies
letalem Signature der Hanbaleh des
der Demokratie in Jischow, with-
den alles
Le-
Rampt in dem ele
rend andere Gruppen Ihr Spiel mit
herea and Druken, THE Juilen
no Serbrichten worden vom Leiter
Wast Leuml. Die
der Kebills und mit thren Hgeben
jetzi in Insuration surde de
tem her - behen allow
des P.I.O., Mr. beli einer
muse words suf nácholo Woche
Wählern getrieben haben,
sequentes Klama
in Tel-Axiv de-
vertaget. - Die Furwerge für ent-
Bille Alija Chadasche has nicht
Anderen. wes wir personal suris
Erfale le der
nach der Herrschaft in der Jerusa-
Wir - Mrix
Die Pardessanim be
(asseme Soldates war Gegenstand
Irmer Kehills gestrebt und strebt
siell MI.
der in l'alhering unter que
ben - der Registrom sine An-
von Beratangen wischen drm
wall, our das herábelato - die
triber vum 11 Proud pril Dunam
Wand Leurni und der Registroug
Tage-
In Tvl-Avly faid da-
Kin Verein für Tourtallk, det
mi vs such
valuet vine Respechang swischen
sich nm die Entwinklong des
Soeben erschienen:
----- dellite au
316 Charch and judischen Par-
Premdeurerkehre nach dens Krie
lier wieht direct
stall Der Lebens-
en kjimmera soll, wird in THEATH
gegrändet. Die Ereduring Art
SIEGFRIED MOSES
mit - Jude em too bell,
ist im April um starn
stat via dra information
Punki getativa. Bie Geschäfte-
Friedhofts тел Tel-Avir darch den
Wirkons Int. dem whell an -
minten in küneen nach
Ankanf von 40 Donam bei Nach-
visit la der l'alestine Camile TVE
lat Jischok wird von der Chewrs
Pay die gam-
- WHI, 100
off-nisichten Verordnung um 10%
Radioche geplant. pri-
DIE
les supender President Depresits
worden. Ver den
indient diears Varbalen, da
--- su We
Watten IIIP Assetath
der in Prior sichende Baden für
JÜDISCHEN
---- Ishro - INL
to Bomit time. Princh Thank
bestimet lat.
lest Lm der nn. de An
Nathania and in rinigm anderen
Die 19. des pall-
en specion, nie
Orive winden lister Fal-
atinensischen Baschomer liminir
NACHKRIEGS-
were die
wird am at Mai in Tel-Arte er-
die
und Kinverh's such not
while patient under sled die ort-
affect, Der Maine
FORDERUNGEN
Jodes assilité Nor Bills walk =
Helun litcher
Blum crisielt via Deskerbreihen
sin Benesch butte eleve
sicht Der Yor-
due Koolge Von Schweden. dem en
The en doin of belashe
situraily der Zeniration Wahlkom-
in Würdigneg der activediachen
Mar/May-1101 wird diese
mile für jödische Florhtlings ein
de
ilso The you Kr lak
-Drte und skrin um die
nild batte, Die
der Ron-
in rime Nation, die
sowjetrussieche Ausstrilung wird
carld del Juilen des swelle
filkte beintiben. the Print für Eln-
ave Kairo nach Tel-Avis Sterführt
upher and Subtotal war. Nile
sprüche grave die Wallerverseich-
und dort im BY
Irgun Olej Merkas Europa Bitaon Ltd.
nisse contr has 20 Mal -
selgt worden. Bile
must Exem at wie
Die unde
der "Habimah" protestiones lb
--- 16 der Name
intentive pablication juist such, einem an die
Zu beziehen durch alle Buchhandlungen
with June wir
artive with Kinselhellen Uber dir
ever des
are ell that am --------
vos Kandidatenisten
u. durch das Büro, T.-A., Rambamstr. 15
et since mill Haff-
lienehmen des
name and in die Zip:
had den Aluschlose sugenanter
Schotmann während der Pre-
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miere dea neuen llabimab-Stückes
achouse
Regraded Unclassified
175
Pable-
CONFIDENTIAL FOR THE WAR REFUGEE BOARD FROM DUBOIS.
The following is the exact declaration agreed upon by the British
Government:
Intercross has communicated to the Governments of the United Kingdom
and the United States an offer of the Hungarian Government regarding the
emigration and treatment of Jews. Because of the desperate plight of
the Jews in Hungary and the overwhelming humanitarian considerations
involved the two governments are informing the Government of Hungary
through Intercross that, despite the heavy difficulties and responsibilities
involved, they have accepted the offer of the Hungarian Government for the
release of Jews and will make arrangements for the care of such Jews
leaving Hungary who reach neutral or United Nations' territory, and also
that they will find temporary havens of refuge where such people may
live in safety. Notification of these assurances is being given to
the governments of neutral countries who are being requested to permit
the entry of Jews who reach their frontiers from Hungary. The governments
of the United Kingdom and the United States emphasize that, in accepting the
offer which has been made, they do not in any way condone the action
of the Hungarian Government in forcing the emigration of Jews as an
alternative to persecution and death.
(Dictated by Mr. Warren over the 'phone to Miss Rhea, 1:00 p.m., 8/17/44)
Regraded Unclassified
175-1
DEPARTMENT OF STATE
FOR THE PRESS
AUGUST 17, 1944
Regraded Unclassified
No. 366
CONFIDENTIAL RELEASE FOR PUBLICATION IN THE MORNING NEWSPAPERS
OF FRIDAY, AUGUST 18, 1944, WHICH DO NOT APPEAR ON
THE STREETS BEFORE 7:00 P.M., K.W.T., THURSDAY,
AUGUST 17, 1944. NOT TO BE PREVIOUSLY PUBLISHED,
QUOTED FROM OR USED IN ANY WAY.
The International Committee of the Red Cross has communi-
cated to the Governments of the United Kingdom and the United
States an offer of the Hungarian Government regarding the
emigration and treatment of Jews. Because of the desperate
plight of the Jews in Hungary and the overwhelming humani-
tarian considerations involved the two governments are
informing the Government of Hungary through the International
Committee of the Red Cross that, despite the heavy difficul-
ties and responsibilities involved, they have accepted the
offer of the Hungarian Government for the release of Jews and
will make arrangements for the care of such Jews leaving
Hungary who reach neutral or United Nations territory, and
also that they will find temporary havens of refuge where
such people may live in safety. Notification of these
assurances is being given to the governments of neutral coun-
tries who are being requested to permit the entry of Jene who
reach their frontiers from Hungary. The Governments of the
United Eingdom and the United States emphasise that, in
accepting the offer which has been made, thy do not in any
way condone the action of the Hungarian Government in forcing
the emigration of Jewa as an alternative to persecution and
death.
### *** ---
Mides Chauncey(for the Sec'y), Abrahamson, Aksin, Borenstein, Cohn,
DuBois, Drury, Friedman, Gaston, Hodel, Laughlin, Lesser, Mann, Mannon,
Marks, McCormack, Pehle, Sargoy, Standish, Weinstein, Cable Control Files
176
DEPARTMENT OF STATE
FOR THE PRESS
AUGUST 17, 1944
No. 366
CONFIDENTIAL
FUTURE RELEASE
NOTE DATE
CONFIDENTIAL RELEASE FOR PUBLICATION IN THE MORNING NEWSPAPERS
OF FRIDAY, AUGUST 18, 1944. WHICH DO NOT APPEAR ON
THE STREETS BEFORE 7:00 P.M., E.W.T., THURSDAY,
AUGUST 17. 1944. NOT TO BE PREVIOUSLY PUBLISHED,
QUOTED FROM OR USED IN ANY WAY.
The International Committee of the Red Cross has communi-
cated to the Governments of the United Kingdom and the United
States an offer of the Hungarian Government regarding the
emigration and treatment of Jews. Because of the desperate
plight of the Jews in Hungary and the overwhelming humani-
tarian considerations involved the two governmente are
informing the Government of Hungary through the International
Committee of the Red Cross that, despite the heavy difficul-
ties and responsibilities involved, they have accepted the
offer of the Hungarian Government for the release of Jews and
will make arrangements for the care of such Jews leaving
Hungary who reach neutral or United Nations territory, and
also that they will find temporary havens of refuge where
such people may live in safety. Notification of these
assurances is being given to the governments of neutral coun-
tries who are being requested to permit the entry of Jewe who
reach their frontiers from Hungary. The Governments of the
United Kingdom and the United States emphasize that, in
accepting the offer which has been made, they do not in any
way condone the action of the Hungarian Government in forcing
the emigration of Jews as an alternative to persecution and
death.
Regraded Unclassified
177
NEW
YORK
Herald
Tribune
AUG 18 1944
U.S. and Britain Agree to Help
Emigrant Jews From Hungary
WASHINGTON, Aug. 17 (AP)
Lernment of Hungary through the
The State Department announced
international committee of the
tonight that the United States and
Red Cross, that, despite the heavy
Great Britain have accepted the
difficulties and responsibilities in-
offer of the Hungarian government
volved," they will arrange to take
for the release of Jews and that
care of Jewish refugees from Hun-
Anglo-American authorities will
gary and see that they find tem-
arrange to take care of Hungarian
porary havens of refuge.
Jews who reach neutral or United
The State Department said
Nations territory.
"the governments of the United
The announcement, made jointly
Kingdom and the United States
with the British government in
emphasized that, in accepting the
London, said that the international
oer which has been made, they
committee of the Red Cross had
do not in any way condone the
transmitted to the governments of
action of the Hungarian govern-
the United Kingdom and the
menrt in frocing the emigration of
United States an offer of the
Jews as an alternative to persecu-
Hungarian government regarding
tion and death."
the emigration and treatment of
Notification of these assurances,
Jews.
the department said, is being
"Becavse of the desperate plight
given to the governments of neu-
of the Jews in Hungary, and the
tral countries who are being re-
overwhAming humanitarian con-
quested to permit the entry of
siderations involved, the two gov-
Jews who reach their frontiers
ernments are informine the
from Hungarv.
Regraded Unclassified
178
The Washington Dost
AUG 18 1944
Hungarians'
Offer to Free
Jews Accepted
The State Department an
nounced last night that the United
States and Great-Baitain have ac
cepted the offer of the Hungariar
government for the release of Jews
and that Anglo-American authori-
ties will arrange to take care of
Hungarian Jews who reach neutral
or United Nations territory.
The announcement, made joint-
ly with the British government
in London, said that the interna-
tional committee of the Red Cross
had transmitted to the govern-
ments of the United Kingdom and
the United States an offer of the
Hungarian government regarding
the emigration and treatment of
Jews,
The State Department said: "The
Governments of the United King-
dom and the United States em-
phasized that in accepting the offer
which has been made, they do not
in any way condone the action of
the Hungarian government in
forcing the emigration of Jews as
an alternative to persecution and
death."
Notification of these assurances,
the department said, is being given
to the governments of reutral
countries who are being requested
to permit the entry of Jews who
reach their frontiers from Hun-
gary.
Regraded Unclassified
179
Times
Therald
WASHINGTON,
AUG 18 1944
Persecutors Condemned:
U.S. and Britain to Aid Jews
Under Pact With Hungary
The United States and Greats as an alternative to persecution
Britain last night accepted an
and death."
offer by the Hungarian govern-
Secretary of State Hull has on
ment to permit Jews who have
several recent occasions de-
been subjected to persecution in
nounced the persecution and "mas-
Hungary to leave that country
sacre" of Jews in Hungary by the
provided the Anglo-American coun-
Nazis and their Hungarian
tries care for them.
Quislings.
They said in & joint statement,
"The entire Jewish community
however, they wanted to empha-
in Hungary, which numbers near-
sine "that, in accepting the offer
ly 1,000,000 souls, is threatened
which has been made, they do not
with extermination," Hull said on
in any way condone the action of
July 14. "The puppet Hungarian
the Hungarian government in
government
stands condemned
forcing the emigration of Jews
before history."
Regraded Unclassified
180
THE
SUN
AUG 181944
HUNGARY JEWS
Red Cross, that, despite the heavy
difficulties and responsibilities in-
volved," they will arrange to take
care of Jewish refugees from
WILL BE AIDED
Hungary and see that they find
temporary havens of refuge.
The State Department said "the
governments of the United King-
United States And Britain To
dom and the United States empha-
sized that in accepting the offer
Care For Budapest Exiles
which has been made, they do not
in any way condone the action of
the Hungarian Government in fore-
Washington, Aug. 17 (AP)-The
ing the emigration of Jews as an
State Department announced to.
alternative to persecution and
night that the United States and
death."
Great Britain have accepted the of-
Notification of these assurances,
the department said, is being given
fer of the Hungarian Government
to the governments of Beutral
for the release of Jews and that
countries who are being requested
Anglo-American authorities will
to permit the entry of Jews who
arrange to take care of Hungarian
reach their frontiers from Hungary.
Jews who reach neutral or United
Nations territory.
The announcement, made jointly
with the British Government in
London, said the International
Committee of the Red Cross had
transmitted to the governments of
the United Kingdom and the
United States an offer of the Hun-
garian Government regardig the
emigration and treatment of Jews.
Temporary Havens Assured
"Because of the desperate plight
of the Jews in Hungary, and the
overwhelming humanitarian con-
siderations involved, the two gov.
ernments are informing the Gov.
ernment of Hungary through the
International Committee of the
Regraded Unclassified
NEW YORK DAILY NEWS - August 18, 1944
181
U.S. and Britain Agree
To Aid Hungarian Jews
Washington, D. C., Aug. 17 (P).-The State Department
announced tonight that the United States and Great Britain
had accepted the offer of the Hungarian Government for the
release of Jews and that Anglo-American authorities would
arrange to take care of Hungarian Jews who reach neutral
or United Nations territory.
The announcement, made jointly
The State Department said "the
with the British Government in
governments of the United King-
London, said that the Interna-
dom and the United States empha-
tional Committee of the Red
sized that, in accepting the offer
Cross had transmitted to the
which has been made, they do not
governments of the United King-
in any way condone the action of
dom and the United States an of-
the Hungarian Government in
fer di the Hungarian Government
forcing the emigration of Jews
regarding the emigration and
as an alternative to persecution
treatment of Jews.
and death."
Regraded Unclassified
182
New York Post
AUG 14 1944
Britain OK's
Rescue of
Hungary Jews
By WILLIAM 0. PLAYER JR.
Post Staff Correspondent
Washington, Aug. 14-The U.S. fovernment has been
formally notified by Great Britain of its acceptance in prin-
ciple, of Hungarian Regent Horthy's recent offer to permit
the emigration of various categories of Jelvs from Hungary.
Consultations under way be
tween the two governments have
Thousands Already Admitted
now progressed to the stage of
However, though it has not
working out machinery to imple-
been widely publicized, since the
ment such an emigration pro-
beginning of the war up to last
gram and all interests concerned
March, the British had admitted
are hopeful that in the very near
approximately 51,000 Jewish
0
future-possibly within the next
refugees plus wives and children,
few days-something definite can
to Palestine under the provisions
be announced.
of the White Paper, and it is es-
timated that approximately 1,100
Some Delays Unavoidable
refugees a month, or approxi-
Authorities concerned admit
mately 5,500 more, have been ad-
that there have beèn delays in
mitted since.
acting on the Horthy offer, but at
Approximately 20,000 addition-
least some of the delays have
al Palestinian certificates, fur-
been based on questions of mill-
thermore, are still outstanding
tary security and hence have
and available under those provi-
been unavoidable.
sions. After this quota has been
Horthy, in a proposal transmit-
exhausted, the British promised
ted to the U. S. and British gov-
last Nov. 10 they will be willing,
ernments through the Interna-
with the consent of the Arabs,
tional Red Cross, offered to re-
to permit further immigration.
lease from Hungary all Jewish
In addition to the approximate
children under 10, Jewish holders
ly 56,500 refusees admitted to
of valid visas to other countries
Palestine, the Fritish have, since
of reception and all Jews who
the start of the var, received ap-
could obtain British immigration
proximately 70,000 refugees di all
certificates to Palestine.
sorts (but mostly Jews) into the
The U.S. government, as repre-
United Kingdom; and, at refugee
sented by the War Refugee
camps in the Middle East have
Board, naturally is eager to take
received approximately 25,000 ad-
full advantage of the Hungarian
ditional from Italy (mostly Yugo-
proposal to send Jews to Pales-
slavs, plus some Jews); 24,000
tine; but American authorities
from Greece and other island
readily understand that the Brite
areas (various nationalities in-
ishe with their long-standing Pal-
cluding Jews), and about 2,000
estinian problem to consider,
from Spain (virtually all Jews).
should be somewhat on their
Most of these camps have
guard against any action which
since been taken over by UNRRA.
possibly might upset the delicate
political balances there.
Regraded Unclassified
183
The New York Times.
AUG 18 1944
ILS. AND BRITAINAID
of the refugee program would be
worked out to accord with the
numbers of persons involved
EWS OF HUNGARY
While accepting the arrange-
ment, the official announcement
severely castigated the Hungarian
Accept Budapest Proposals to
Government for invoking regula-
tions that make necessary the
Offer 'Temporary' Haven to
flight of Hungarian Jews.
Persecuted People
TEXT OF STATEMENT
The State Department's an-
nouncement follows:
By CHARLES HURD
The International Committee
Special to THE Hew Your TIMES.
of the Red Cross has communt-
WASHINGTON, Aug. 17-The
cated to the Governments of the
United States and Great Britain
United Kingdom and the United
will give "temporary" refuge to
States an offer of the Hungarian
any Jews able to leave Hungary by
Government regarding emigration
vvirtue of regulations set up by
and treatment of Jews. Because
this enemy country authorizing the
of the desperate plight of the
emigration of Jews, the State De-
Jews in Hungary and the over-
whelming humanitarian consid-
partment announced Mere tonight.
erations involved, the two Gov-
The two Governments have noti-
ernments are informing the Gov-
fied Hungary, through the Red
ernment of Hungary through the
Cross, that It will give haven to
International Committee of the
these refugees, and has requested
Red Cross that despite the heavy
neutral countries to facilitate the
difficulties and responsibilities In-
passage of such Jews as reach
volved they have accepted the of-
their borders.
fer of the Hungarian Govern-
The State Department's an-
ment for the release of Jews, and
nouncement made clear that the
will make arrangements for the
plan did not involve preparation for
care of such Jews leaving Hun-
permanent emigration. It spoke
gary who reach neutral or United
specifically of "temporary havens
Nations territory, and also that
of' safety." using the same term
they will find temporary havens
tat has been applied to refugee
of refuge where such people may
live in safety.
camps set up throughout the Medi-
Notification of these assurances
terranean area for refugees from
is being given to the neutral coun-
Yugoslavia, Greece and France.
tries, who are being requested to
There was no comment on a
permit entry of Jews who reach
question whether the agreement
their frontiers from Hupgary,
would mean that Great Britain
The Governments of the United
would admit Hungarian Jews to
Kingdom and the United States
Palestine in the same manner that
emphasize that in accepting the
refugeet already have been admit-
offer which has been made they
ted to a refugee camp at Oswego,
do not in any way condone the
N, Y., but the commitments left
action of the Hungarian Govern-
this as an open question.
ment in foreing emigration of
Jews as an alternative to persecu-
It appeared probable that details)
tion and Month
Unclassifie
184
San Salvader, K1 Salvador, August 17, 1944
No. 1914
SECRET
SUBJECT: Safeguarding of Lives of Holders of
Salvadoran Passports or other Documents.
The Honorable
The Secretary of State
Washington
Sir:
with reference to my secret airgram no. A - 327 of
August 10, 1944, regarding the safeguarding of lives of
holders of Salvaderan passports or other decuments, I have
the honor to transmit herewith & translation of a self-
explanatory note date August 15, 1944 from the Salvaderan
!linister for Foreign Affairs to the Chief of the Swies
Federal Pelitical Department, Division of Fereign Affairs,
cencerning the holders of such documents in Husigary.
Respectfully yours,
Walter Thursten
Enclesure
Translation of note
dated 8/15/44
711
00/min
Regraded Unclassified
185
Enclesure to despatch no. 1914, dated 8/17/44, from the
American Babassy at San Salvador, n Salvador, on the
subject: Safeguarding of Lives of Holders of Salvaderan
Passports or other Decuments.
TRANSLATION
Ministry of Fereign Affairs
Republic of EL Salvador
Diplematic Section
A - 800 - D -
San Salvader, August 15, 1944.
Excellency:
I have the honor to prepose the fellowing bases to
gevern the representation of Salvaderan interests in
Hungary, which Your Excellency's Government kindly ac-
cepted:
(1) Salvaderan passports or other decuments held by persons
who are in Hungary subject to persecution, will be
recegnised and cenfirmed;
(2) The Hungarian Government will understand that persons
who passess these passporte or other decuments will
be accorded the treatment, privileges and immunities
to which Salvaderan nationals have a right, and
(3) The United States of America will negetiate the exchange
of these persons.
I request Your Emellency to inform - whether your
Government is in agreement with such bases, and to accept
in advance my thanks for your kindness.
I renew to Your Excellency the assurances of my
highest and nest distinguished censideration.
(Julie B. Avila)
His Emellency the Chief of the Swiss
Federal Pelitical Department,
Division of Foreign Affairs,
Bern, Switzerland.
Regraded Unclassified
186
PARAPHRASE OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Embassy, London
DATED:
August 19, 1944
NUMBER:
6521
CONFIDENTIAL
War Refugee Board sends the following for Dubois.
Messages 6607 and 6609 received. Heartiest congratulations.
Kindly express our appreciation to the Ambassador. The joint
declaration text is satisfactory as transmitted in your 6609.
It is being released concurrently here. We do not propose the
separate release of text of note delivered to Intercross by the
United States Government.
HULL
Regraded Unclassified
187
NMC-350
PLAIN
London
Dated
August 17, 1944
Rec'd 11:20 M.M.
Secretary of State,
Washington.
us URGENT
6626, Seventeenth
FOR FEHLE WAR REFUGEE BOARD FROM DUBOIS
Please reply most urgently to my 6625.
WINANT
WSB
Regraded Unclassified
188
GNK-707
PLAIN
London
Dated August 17, 1944
Rec'd 9:10 m.m., 18th.
Secretary of State,
Washington.
6663, seventeenth.
LONDON TIMES of today carries article stating that
Italian Government has approved in principle request
by IGC that certain non-Italian refugees in Itely be
naturalised as Italism citizens one be allowed to remain
there. Vice Director IGC states this Italian action
was taken after representations by IGC representative
in Italy who acted on request of certain non-Italian
refugees.
WINANT
JT
Regraded Unclassified
HE-638
PLAIN
189
London
Dated August 17, 1944
Rec'd 2:10 ..m., 18th
Secretary of State
Washington
6664, Seventeenth
Reference Embassy's telegram number 6612, August 16, regarding Fourth
Plenary Meeting of inter-Governmental Committee on refugees.
Plenary Committee net for second sitting 11 a.m. August 17, Remaining
items on agenda were disposed of as follows:
Polish Ambassador as Chairman of Sub-Committee on Rules reported the
few minor alterations recommended by Sub-Committee and these were unanimously
adopted.
Committee on Nominations proposed the following for membership in Execu-
tive Committee: Representatives of United States, United Kingdom, Russia, Nether-
lands, France, Czechoslovakia, Brasil, Canada, and Mexico. The representatives
nominated were elected without dissenting opinion.
Session adopted unanimously resolution affirming principle of cooperation
between ICC and non-Covernmental organizations. Polish Ambassador urged that
greatest possible use be made of such connections as IGC had with voluntary re-
lief agencies especially Intercross. Pointed out that refugee camp at the Resion-
stadt originally proclained by Germans as a "model Chetto" was nothing more than
& decoy since many inmates had been deported for execution in Poland. Suggested
that Intercross might well publicise its knowledge of real purpose of camp and
conditions therein. He remarked further that as the Germans saw imminent defeat
they were redoubling efforts to stamp out classes of persons which would be in-
fluential in forming future policy toward Germany these classes including intel-
lectuals and the "elite" as well as Jews. He felt that this situation was exceed-
ingly dangerous and that it was time for all Governments to reiterate emphatically
their determination to see that Germans guilty of persecution should not escape
punishment.
Replying to this speech Chairman stated that suggestion regarding all
possible cooperation with voluntary agencies would be referred to Executive Com-
mittee, and that IGC was in full sympathy with Polish Ambassador's remarks, reso-
lution was then unanimously adopted.
Sir Herbert Emerson's nomination as Director of IOC had already been
made by Executive Committee. I proposed this nomination be accepted. Lord
Winterton seconded and took occasion to pay tribute to work of Myron Taylor.
French representative supported nomination and thanked Committee on behalf of
Provisional Government of French Republic for work it had done for France and
gave assurance in short while France would no longer need to call on IGC for
assistance but would itself be able to assist IOC. Emerson's election as Director
then unanimously voted. Chairman notified him in complimentary speech and
Emerson returned thanks assuring Committee of his continued efforts and praising
work of colleagues on Executive Committee and office staff.
Regraded Unclassified
190
- #6664, Seventeenth from London
Committee unanimously adopted resolution to refer study of drawing up
form of travel documents for stateless persons to a committee on experts to
be appointed at the invitation of Director by Governments of Argentina Belgium
Brasil, Chile, Caechoslovakia, France, Poland, United Kingdom and United States.
Chairman read note passed to him by Russian delegate stating in substance
that since Russian Government had no relations whatsoever with League of Nations
it must reserve its decision to cooperate with League as provided in rules of
Committee and resolution just adopted. Chairman assured Russian delegate this
reservation would be duly recorded.
Brasilian delegate proposed vote of thanks to Chairman in complimentary
terms to which Chairman rade appropriate reply. Plenary Session then adjourned
it being exactly noon.
WINANT
HTM
Regraded Unclassified
JK
August 17, 1944
191
Distribution of
true reading only by
7 p.m.
special arrangement.
(SECRET W)
AMLEGATION,
STOCKHOLM.
1644
The following for Olsen is WRB 75.
Please transmit paraphrase of the following message to
Wilhelm Wolbe, 11 Olefagotten, Stockholm, Sweden.
QUOTE Reported 7000 Lithuanian Jews evacuated from Kaunas
to East Prussian border for slave labor fearful extermination
will follow. We ready meet every obligation effect their rescue.
Please utilize every appropriate method available save meximum
possible number.
Group of 1200 including Rabbis religious leaders evacuated
from Hungary through Slovakia now reported in concentration
camp at Belsen Bergen near Hanover. Danger imminent deportation
to death camps. Doing everything to effect their rescue. Vital
you immediately (1) request Swedish government to grant Swedish
passports or visas to save this group or (2) intervene Swedish
Government and King direct immediate appeal to Admiral Horthy
to demand repatriation of these 1200. If repatriation is granted,
request that their transportation to Hungary be accomplished
in conditions insuring survival and that on their trip they be
accompanied by representative of Intercross, Swedish Redcross
or Hungarian Redeross to insure such conditions. Also that
upon return to Hungary, they be treated under terms of relaxed
regime pending emigration. Enlist cooperation of Olsen and
Rabbi Ehrenpreis. The lives of this group dependent on your
action. Vaad Hahatzala Emergency Committee. UNQUOTE
THE FOLLOWING FROM WRB FOR OLSEN.
If you deem it advisable, you may actively support the
above requests to Swedish authorities.
HULL
(GLW)
WRB:MMV:KG
NOE
SE
EE
S/CR
8/17/44
Regraded Unclassified
192
Distribution of
August 17, 1944
true reading only by
special arrengement.
9 p.m.
(SECRET W)
War Refugee Board
AMLEGATION,
STOCKHOLM.
1646
The following for Olsen forms WRB 76 and is from
Pehle.
I regret sincerely the tragic news conveyed in
your 3046 of August 11, No. 70 to WRB. I hope and
trust that the report received by you proves to have
been erroneous, and that Vokietaitis will be rescued.
I want also to take this occasion to congratulate you
on the imaginative and effective work you are doing
despite the most forbidding difficulties. We all
appreciate keenly the initiative and ingenuity that
you have displayed, as well as the tireless effort to
which your accomplishments testify.
HULL
(GLW)
WRB:MMV:KG
NOE
S/CR
8/17/44
Regraded Unclassified
193
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
August 17, 1944
NUMBER:
2834
CONFIDENTIAL
Please transmit the following message to Isaac Sternbuch,
St. Gallen, Switzerland:
QUOTE: Reported 7000 Lithuanian Jews evacuated from Kaunas
to East Prussian border for slave labor fearful extermination
will follow. We ready meet every obligation effect their
rescue utilize every appropriate method available save max-
imum possible number. Contact Intercross urge them send
representative intervene for group.
Concerning 1200 endeavoring secure Palestine certificates
for them. Urge you do likewise. Necessary also you request
Intercross and Swiss government to address appeal to Admiral
Horthy to demand repatriation of this group. It is hoped that
their transportation to Hungary would be accomplished in con-
ditions insuring survival and that on their trip they would be
accompanied by representative of Intercross or Hungarian Red-
cross to insure such conditions. Also, that upon return to
Hungary, they would be treated under terms of relaxed regime
pending emigration. Have cabled Wolbe Stockholm to make sim-
ilar request of Swedish government. Vaad Hahatzala Emergency
Committee. UNQUOTE
The following from WRB for McClelland:
Please actively support the above requests to Swiss
authorities and Intercross. Developments should be reported.
THIS IS WRB CABLE TO BERN NO. 128
HULL
Regraded Unclassified
194
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
August 17, 1944
NUMBER: 2836
SECRET
Please transmit the following message to International
Red Cross at Geneva, Switzerland:
It
QUOTE Jewish telegraphic agency reports from Bern that
according reliable letters from Hungary last days of July
deportations are continuing at night in spite of Horthy's
promises. Jewish circles here in great anxiety. Please
ascertain facts. Agudas Israel World Organization, Jacob
Rosenheim, President. UNQUOTE
THIS IS WRB CABLE TO BERN NO. 126
HULL
Regraded Unclassified
195
F0-360
Bern
This telegram must be
paraphrased before being
Dated August 17, 1944
communicated to anyone
other than a Government
Received 11:15 a.m.
agency. (RESTRICTED)
Secretary of State
Washington
5335, August 17, 1.p.m.
FOR WRB FROM MCCLELLAND
Referring to the Department's 2760, August 10, please 600 Legation's
5092, August 7.
HARRISON
WTD
LMB
Regraded Unclassified
196
NCB-355
Born
This telegram must be
paraphrased before being
Dated August 17, 1944
communicated to anyone
other than a Government
Rec'd 11:20 a.m.
Secretary of State,
Washington.
5336, August 17, 2 p.m.
FOR WRB FROM MCCESLLAND
FOR LEON KUBOWITZKI WORLD JEWISH CONGRESS FROM GERHART RIEGNER:
"Your cable No. 119. Reports indicating that deported Hun-
garian James were sent Germany conformity agreement to provide Hun-
garian workers for German war industry are obviously Hungarian propa-
ganda. We have no knowledge any such agreement. I understood that
Hungarian Government in their reply to ICRC asking where deported
people had been taken declared they had been sent to Germany for pur-
poses of "arbeitseinsats". Apparently similar communication was made
to Swiss Government. I understand furthermore that ICRC then asked
Mungarian authorities whereabouts of deported aged people, children,
women, etc., but received no answer".
HARRISON
BB
Regraded Unclassified
197
PARAPHRASE 07 TELEGRAM RECEIVED
FROM:
American Legation, Born
TO:
Secretary of State, Washington
DATE:
August 17, 1944
NUMBER: 5337
CONFIDENTIAL
The following message WRB for McClelland, from
Reae Bertholet for attention of Frank Kingdom Intl
Rescue and Relief Committee.
In order to take special action in France and
Hungary I should like to spend $10,000 with Dector
Tchlemoff of OSE. Your approval via telegraph would
be appreciated.
HARRISON
DCR:EBH 8/18/44
Regraded Unclassified
198
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMLEGATION, BERN
TO:
Secretary of State, Washington
DATED:
August 17, 1944
NUMBER: 5340
CONFIDENTIAL
This message is from McClelland for WRB.
Reported from Lazagurvio to Leo Wulmann American OSE: I
an in contact permanently with the qestion of ICRC and an helping
in Rumania and Hungary. with the participation of former workers of
OSE We are attempting to constitute Rumania as the central children's
relief organisation. Aradtimisuara, our prequr institutions, are
helping Hungarian refuges children. Transmistrian children (1400)
who were resvacuated and earnarked for Palestine have been put in
children's home temporarily. Me are negotiating with joint since
siscable regular subventions are critically required. In regard to
Hungary, we are waiting for detailser the possibilities of resoue
work, especially medical relief and children smigration, We are
preparing, with the participation of joint, considerable bransport of
restoratives and medicines. Proceed W 1th your effort regarding the
Jewish population of freed areas of Enstern Europe and transmit all
data possible to us. The diverse possibilities of resoue work in
Rumania and Hungary require to be served by funds outside the joint
allotment although the latter has been very useful to us in our work.
Regards are sent by Professor Strause of the Resiedstadt.
DCR:EMS
HARRISON
8-19-44
Regraded Unclassified
199
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Bern
TO:
Secretary of State, Washington
DATE:
August 17, 1944
NUMBER:
5343
SECRET
McClelland sends the following for WRB.
During the past few months regular reports have been received
(the most recent dated 28th of July from Budapest) relative to
underground rescue work which Jewish Hechalus organization is carry-
ing on intensively, working out of Bucharest, Bratislava, and Budapest,
the latter city in particular. One hundred thousand Swiss francs
from WRB funds in early July (*) Abuted No. 260 from the Department
and similar amount to this program on August 10, which has yielded
positive results satisfactorily, although it is an expensive mode of
rescue costing from one to two thousand Swiss francs to evacuate one
person. Have sent this money to Slovakia, Hungary and Rumania. By
taking advantage of the willingness of certain Hungarian officials,
non-commissioned officers and soldiers in army units along borders of
Rumania and Hungary, for example, to help with flight of imperiled
Jews, the uneasy breathing spell in Hungary since the July 9 suspen-
sion of deportations has been utilized by Hechaluz to the utmost.
July 20 report from Bucharest places at 1650 the number of persons evacu-
ated to Rumania already, with 210 waiting to cross the border in the
Arad region. On either side of the border at Segesvar and Brasse,
and Temesvar and Arad relay points have been set up. Assistance has
been given to flight of all categories of endangered Jews, including
opphaned children and especially to those who have escaped from Ghetti
prisons and military forced labor battalions in the provinces of
Hungary. Hechaluz uses funds to obtain collaberation of minor Ruman-
ian and Hungarian officials and to pay transportation maintenance,
administrative personnel, and false papers "passeurs". The Rumanians
appear to be making no difficulties according to all reports. As
long as this program produces results and the fate of Jews in Hungary
is uncertain, I will continue to support program if you approve.
Also promoting flight of smaller groups (particularly these
who had been there previously) to Slovakia where the situation is
less critical.
HARRISON
(*) Apparent omission (serviced)
DCR:EBH
8/19/44
Regraded Unclassified
200
8/2/19
CORRECTION OF
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Born
90:
Secretary of State, Washington
DATED:
August 17. 1944
NUMBER:
5343
SECRET
In lines seven, eight, and nine delete, "One hundred
thousand Swiss france from WRB funds in early July (*) ibuted
No. 260 from the Department," and insert, "(Department's
telegram of July 28, 1944, No. 2603). Early in July contributed
one hundred thousand Swies francs from WRB funds." The lines
should then read: "(Department's telegram of July 28, 1944.
No. 2603). Early in July contributed one hundred thousand
Swies france from WRB funds and a similar amount to this
program.. #
DCR:IDB;XFH
8/24/44
Regraded Unclassified
201
NOT TO BE RE-TRANSMITTED
COPY NO.
11
SECRET
OPTEL No. 268
Information received up to 10 a.m., 17th August, 1944.
1. NAVAL
HOME WATERS. 15th/16th. 1 M.G.B. sunk and 2 M.G.B's
damaged by under-water explosions in assault area.
BAY OF BISCAY. 15th/16th. M.T.B's probably sank enemy
trawler off BELLE ILE.
2. MILITARY
N.W. FRANCE. U.S. troops have advanced to DREUX and
CHARTRES. Further west stiff enemy resistance continues in ARGENTAN
area, but U.S. troops have occupied DOMFRONT and TINCHEBRAY. U.K.
troops have advanced eastward to FLEURS and CONDE. Troops of First
Canadian Army have captured FALAISE and ground to the B. of it. No
report from Southern France.
RUSSIA. Russians have advanced N. and N.W. from PSKOV
to within 35 miles of TARTU, Enemy infantry and tank attacks W. of
SIAULIAI and E. of PRAGA have been repulsed, Russian bridgehead
N.W. SANDOMIERZ extended.
3. AIR
WESTERN FRONT. 16th. Heavy bombers dropped 1,261 tons
on 7 aero-engine and assembly plants in Central GERMANY, also 812
tons on 4 synthetic oil plants in LEIPZIG district; both with good
results. Enemy casualties 6, 4, 6 by bombers, and 32, 1, 4 by es-
corting fighters for 23 bombers missing. Enemy aircraft destroyed
included 2 jet-propelled.
16th/17th. 1176 aircraft despatched (16 missing). Tar-
gets included STETTIN - 461; KIEL - 346; BERLIN - 23; Minelaying .
93; Diversionary sweeps - 145; Leaflets - 24.
SOUTHERN FRANCE. 15th. Fortresses and Liberators
dropped 739 tons on beaches, bridges, and gun positions for loss of
5 missing. 892 medium and fighter bombers (6 missing) successfully
attacked gun positions, strong points and bridges in assault area.
16th. Fortresses dropped 260 tons on 4 railway bridges
in Southern France.
4. HOME SECURITY
During 24 hours ending 6 a.m., 17th, 151 flying bombs
plotted.
Regraded Unclassified
202
August 18, 1944
(Dictated in presence of Messrs. D. W. Bell and White, and Mrs. Klotz)
I called on Secretary Hull at 9:45 this morning and told
him I wanted to tell him about my trip. First I told him I had
called on General Eisenhower and asked him how he felt about the
way the Germans should be treated the first few months after we
entered Germany, and he said that his impression was that they
should be treated sternly and that they should be allowed to
stew in their own juice.
Then I told Hull that I had a talk with Churchill, and that
I also asked Churchill how he felt, and I got the impression he
wanted the Germans treated in a stern manner. I then told him
that I had done a lot of probing, and through talking with Winant
and with the people who assist Winant, and also based on a memorandum
of July 31st, "Report on Reparation and Restitution - Property
Rights of Germany," under the chairmanship of Mr. Pasvolsky, I
found that from all appearances it seemed that the Germans were
going to be treated in a manner so that they could be built up
over a number of years to pay reparations, and that at the end
of 10 years they would be prepared to wage a third war.
I also told Hull that through questions and direct conver-
sations with Eden at his home and finally in his office, I learned,
by having Mr. Eden read from the minutes of the Tehran Conference,
that during discussions about Poland the President switched the
conversation to 8. discussion of Germany, and it was then and there
decided that Germany should be dismembered in either three or
fifteen parts, and that a commission should be appointed to study
this question. As a result of this the European Advisory Committee
was appointed.
When I made this statement, Mr. Hull literally gasped and
he said to me, "Henry, this is the first time I have ever heard
this." Then he said, "I have never been permitted to see the
minutes of the Tehran Conference," and he kept repeating that
over and over again. He said, "I have asked and I have not been
allowed to see them, and what you have told me is the first time
I have ever heard this." I told Hull that I would keep it absolutely
amongst ourselves. I don't want it discussed in your shop, Harry.
I have to protect both the President and Hull.
Then I said, "Well, now Pasvolsky has made a study along
quite contrary lines, and Winant has also made a study with three
people along different lines." I said that when I was in Winant's
Regraded Unclassified
203
- 2 -
office I didn't think he was telling the truth because he first
said he was making a report on reparations for Germany, but
that about two weeks ago he began to make a new study which would
take into consideration the dismemberment of Germany. I really
don't think that anybody has made a study along the lines the
President and Churchill decided on at Tehran.
When I first mentioned the European Advisory Committee,
Hull said, "That has been & complete failure. The trouble is
that Winant is trying to do two big jobs and he can't do them
both.' So I had to treat the next thing very carefully. I
said, "I am not quite sure whether at Tehran Winant knew about
the clause for the dismemberment of Germany or whether he didn't."
I said he was a little bit vague about it, but Winant kept saying
right along that he had no instructions. However, at one stage
in the game Winant did say that the reason he was hesitating
telling me all the facts about this Conference was that Mr. Hull
had not seen the minutes at first, but that Hull had subsequently
see them. He, Winant, knew about it because he was there in
Tehran. He said that he was there, but it put him in a very
embarrassing position because he didn't know how much to tell
back home, and he didn't know exactly how to handle the situation.
Winant left me with the impression that Hull had seen the minutes
recently.
The sum and substance of this is that here a meeting takes
place sometime last November in Tehran where these three men,
Roosevelt, Churchill and Stalin, agree to the dismemberment of
Germany, and all these people go ahead and make studies without
taking that into consideration and without explicit instructions.
It is like telling an architect to build & house and not telling
him where it should be built, how it should be built, or how many
people it is to house.
Hull was quite upset, SO I said to him, "You know, Cordell,
Harry Hopkins wanted to see me, but I haven't seen him and I am
not going to until I have seen you and the President. I cabled
from Europe that I wanted to see you. I am going to see the
President tomorrow morning and after that I will see Harry."
I said, "I appreciate the fact that this isn't my responsibility,
but I am doing this as an American citizen, and I am going to
continue to do so, and I am going to stick my nose into it until
I know it is all right. I am more interested in my responsibility
as a citizen than I am in holding my job, and I am going to continue
along those lines, and if I find out anything I will come over and
tell you about it." He said that was right.
Regraded Unclassified
204
- 3 -
I said to Hull, "Where to you stand on this?" and he said,
"You know the reason I got along 80 well with the Russians was
because when I was in Moscow I told the Russians that I would hold a
secret trial before which I would bring Hitler and his gang
and Tojo and his gang, and I would shoot them all, and then I
would let the world know about it B. couple of days later."
He said, "That's my position." I asked him what he was going
to do about the State of Germany, and he said, "I don't have any
chance to do anything. I am not told what is going on. That's
on a higher level. I am told that that is a military affair.
I have consultations with the War Department every day on the
immediate objectives, but when they talk about the State of
Germany I am not not even consulted." He said, "Here I am waging
a battle for the President and I am not told, and this is the
first time I have heard this."
Well, I don't know what Hull is going to do, but I am going
to continue along these lines.
Then I went on and told him about the plans which the Army
is making where we would go into the south of Germany and England
in the north of Germany. That is contrary to the way the President
wanted it, but the only way they could have carried out the
President's wishes would have been to have the two Armies cross
each other, so the Army decided to do it the other way.
Then he brought up the Argentine, and I said, "What is the
situation in regard to the Argentine?" and he went into his usual
tirade that everybody is with him on that except Sumner Welles,
and Drew Pearson. Hull said that Welles is going around telling
everybody that he (Welles) will be in the saddle right after
election and not to pay any attention to anything Hull does.
Hull said Welles is for the appeasement of Argentina. Hull told
me about how they had wasted thousands of dollars advertising
Welles' book, and how Welles had only mentioned Hull once in it.
Hull said that all the President would have to do is say one word
and it would stop, and, of course, he is right. It is the same
thing as I had when I was having trouble with Jimmy Byrnes. If
the President had said just one word it would have stopped but
he wouldn't do it.
Regraded Unclassified
205
- 4 -
I asked him how England was acting on the Argentine, and
he said he had gotten them to withdraw their Ambassador.
Hull seemed to feel very, very badly about the Welles'
business.
I told Hull all about my conversation with Sir John
Anderson on the financial problems (I have written a complete
memo on this conversation and it is on file.)
Then I told Hull what we had been able to do over there in
regard to the Hungarian situation, and that DuBois had been ,
most helpful. I said I had discussed it with Churchill and Eden,
and I said that they were quite sensitive about the reaction on
the Arabs. I told Hull that Churchill had opened up the question
by saying he had intended sending in a Jewish Army with a Jewish
flag, and I had told Churchill I was opposed to that because it
would give Hitler a chance to say that the Jews owed allegiance
to a Jewish flag. Churchill said that Bernie Baruchfelt the same
way about it. Hull said he thought that that matter had been
settled months ago. I told him that Churchill was opposed to
raising the quota to bring the Hungarian Jews out because he said
he had promised the Arabs that while the war was going on they
would let the quota stand.
To sum up, if Eden hadn't actually read from the minutes
of the Tehran Conference and Hull hadn't told me face to face
that he hadn't seen them, I wouldn't believe it.
I also told Hull that Russia had kept completely aloof
from the European Advisory Committee, and I told him the reason
they were keeping out of it, in my opinion, was because they
realized how the American and English delegates were proceeding
on this matter, and they wanted no part of it.
From my talk with Hull, I am sure if Hull got a directive
on the dismemberment of Germany he would go to town. My trip
to Europe was many, many times worth while just for what I learned
and what I told Hull, and we will see what happens when I see the
President. Hull said he gets exhausted fighting the different
people around town, meaning people like Welles, and the President
could stop it in 8. minute if he wanted to do it.
Regraded Unclassified
8/18/44-
206
REMINDER -
Treasury representative at Dumbarton
Conference.
I made this
request of Hull
and he said O.K
he would at
me Anour
207
August 18, 1944
11:00 a.m.
Operator:
Go ahead.
HMJr:
Hello.
Eugene
Meyer:
Good Morning, Henry.
HMJr:
Hello, Eugene.
M:
How are you? Welcome home!
HMJr:
Thank you so much.
M:
Did you have a good trip?
HMJr:
Wonderful trip.
M:
Must have been wonderful.
HMJr:
It was a wonderful trip.
M:
Uh -- I wanted to know if I, and one or two
of my staff
HMJr:
Yes.
M:
could have a talk with you and White.
HMJr:
Yes.
M:
I'd be very pleased to furnish lunch. I have no
air-conditioning this year on account of circum-
stances I do not control, but you and White would
be welcome at lunch Tuesday or Thursday of next
week if you could do it, and I would have one or
two people
HMJr:
Do you want to talk Bretton Woods? Is that it?
M:
Yeah, and anything else you want to talk about
in addition.
HMJr:
Well, may I let you know a little -- may I accept
tentatively for Thursday?
M:
Make it tentative for Thursday.
HMJr:
Yes.
Regraded Unclassified
208
- 2 -
M:
And will you would you invite Mr. White for me?
I haven't the pleasure of knowing the gentleman.
HMJr:
I will invite Mr. White, and he is accepting
now.
M:
How's that?
HMJr:
I will accept for him.
M:
Okay. One o'clock.
HMJr:
One o'clock.
M:
At the Post.
HMJr:
I'll look forward to going there.
M:
Well, that's swell. Thanks a lot.
HMJr:
Thank you.
Regraded Unclassified
209
August 18, 1944
12:23 p.m.
Theodore
Granik:
Hello.
HMJr:
Mr. Granik.
G:
Yes, Mr. Secretary.
HMJr:
How are you?
G:
Very well, thank you.
HMJr:
Mr. Granik, half a dozen of us are sitting
around here talking about this program on
Tuesday.
G:
Yes, sir.
HMJr:
And I only found out about it when I came home --
that there's a misunderstanding.
G:
Yes, sir.
HMJr:
And the thing that's bothering me is that
there's too many loose ends, and I wondered
when you would be available for discussion
so that we can tie this thing up.
G:
Well, I had -- I was talking to Mr. Luxford
about a meeting on Monday at your convenience,
Mr. Secretary. I didn't know that you were
coming back sooner.
HMJr:
Well, I
....
G:
I'll be back Sunday night in Washington. See
you any time at your convenience.
HMJr:
Well, the unfortunate thing is I am here all
day tomorrow, but I'll not be here Monday.
G:
Oh, I see.
HMJr:
See?
G:
Well, I could come back
....
HMJr:
What's that?
G:
I'd better come back to Washington tonight.
Regraded Unclassified
210
- 2 -
HMJr:
Well, I'll tell you. If you could -- if you
could -- I don't know just what your plans
are, but if you could be here for a couple
of hours tomorrow morning We could settle
this thing.
G:
Fine.
HMJr:
And then, whatever your week-end plans were
you could carry on.
G:
Well
HMJr:
Could you do that?
G:
I'll come back -- I'll come back tonight.
HMJr:
Well, I think any of these things, if we are
going to do them, it's only worthwhile doing
them well.
G:
That is right. You are correct, sir.
HMJr:
What?
G:
You are absolutely right. I want to do it
right.
HMJr:
And, of course, if I'd had a chance to be
consulted, I would have asked to postpone
this thing a little bit, but that's water
over the dam. I take it you've announced the
program.
G:
Oh, yes, quite heavily.
HMJr:
Well, then we'll cooperate because I appreciate
what you are doing, and could I suggest that
you be at my office at nine-thirty tomorrow
morning?
G:
I'll be at your office at nine-thirty tomorrow
morning.
HMJr:
And then we will go into this thing, and decide
how we can make it a first class program.
G:
I'll be very happy to. I'll be at your office
at the Treasury at nine-thirty tomorrow morning.
Regraded Unclassified
211
- 3 -
HMJr:
Thank you so much.
G:
Goodbye, Mr. Secretary.
Regraded Unclassified
212
August 18, 1944
12:27 p.m.
John
McCloy:
You seem to have jarred 'em loose over there.
HMJr:
Do you think 80?
M:
Gee whiz! You certainly stirred 'em up.
HMJr:
Well, I don't know what you mean, but
....
M:
I mean you must have -- you -- I understand
you are responsible for this Patton drive.
HMJr:
Now, listen, Jack
....
M:
What?
HMJr:
....
don't kid the old man.
M:
Well, it occurred just about the time you
were there.
HMJr:
Well, I'd love to take full credit for it
M:
Yeah.
HMJr:
....
but I'm afraid I can't.
M:
How -- did you enjoy your trip?
HMJr:
Very much. And any time you've got time, I'd
be delighted to see you.
M:
I -- I'm going up in a few minutes to see
Stimson, who 1s up in the Adirondacks.
HMJr:
Oh.
M:
I -- I'll be back Monday, and if we could have
lunch some time next week, I'd be tickled to
death to hear what you've got to say.
HMJr:
Well, I'll -- I'll ....
M:
Well, you -- you -- I won't hold you down to it,
but just bear it in mind
HMJr:
I will, and
....
Regraded Unclassified
213
- 2 -
M:
....
and if you get some free time, give me a
buzz, and I'll come over.
HMJr:
If not for lunch, maybe We could have supper
together.
M:
Right. I'd love to.
HMJr:
How would that be?
M:
Fine. Better yet.
HMJr:
Well, I'll -- why not say Wednesday night for
supper?
M:
Hold the wire just a second.
(Pause)
M:
I got -- Wednesday is the one night I've got
tied up.
HMJr:
Well, I have nothing Thursday.
M:
Tuesday or Thursday, either one or the other.
HMJr:
Well, Tuesday we are doing a broadcast
M:
Yeah.
HMJr:
....
So I think I'd better make it -- 1s your
Mrs. around?
M:
She's away.
HMJr:
Well, then, just -- Thursday night.
M:
Right. Fine.
HMJr:
Thank you.
M:
Thursday is all right.
HMJr:
Thank you.
M:
Yeah. Okay. Uh
....
HMJr:
Yes.
Regraded Unclassified
214
- 3 -
M:
Why, during the course of these negotiations --
is Dan Bell with you?
HMJr:
Yes.
M:
You might just hold him a minute because this is
something he's interested in.
HMJr:
Yes.
M:
We have finished these negotiations as he has
probably told you.
HMJr:
Yes.
M:
Uh -- and they are now through -- they're going
through the Combined Chiefs-of-Staff. We
tightened them up. Uh -- I think we came out
all right, all the way along the line. I think
he'll tell you so. But there was one thing
....
HMJr:
Yeah.
M:
and that was the so-called Lend-Lease
agreement -- the agreement to agree -- the
agreement to negotiate for a future Lend-Lease
agreement.
HMJr:
Yeah.
M:
We said in the Army that we didn't think that
that should be signed by Eisenhower -- that was
a Lend-Lease -- State Department affair.
HMJr:
Yeah.
M:
They finally agreed to that, and they are about
to close it. Now, in the course of our getting
an agreement from the French
HMJr:
Yes.
M:
to pay in cash for the civilian supplies
which the Army had furnished, or would furnish
under "Plan A", we've pointed out that they
were already in arrears
....
HMJr:
Yeah.
Regraded Unclassified
215
- 4 -
M:
....
in North Africa
....
HMJr:
Yeah.
M:
....
as you know.
HMJr:
I know, yes.
M:
And we said we wanted -- we wanted this gold
from them.
HMJr:
Yeah.
M:
Well, we've got the gold.
HMJr:
Yeah.
M:
Uh -- then they agreed to do that, but the
question of the arrears of the North Africa
payment ....
HMJr:
Yeah.
M:
....
although it didn't affect my negotiations,
I used it as an argument for our needing gold
because they had "welshed" somewhat on that.
HMJr:
Yeah.
M:
I don't know whether it was arranged that
before the State Department signed the Lend-
Lease agreement ....
HMJr:
Yeah.
M:
....
there should be either a pay-up on the
North African supplies or another letter saying
that they would pay for them. I don't -- it's up --
it's between -- it's between Lend-Lease and -- and
the Treasury.
HMJr:
Yeah.
M:
It isn't something in which the War Department,
in these -- course of these negotiations undertook
to work out, but the thing came up. And Ball, from
the F.E.A., who was sitting around the table, several
times said something about getting a letter
Regraded Unclassified
216
- 5 -
HMJr:
Yeah.
M:
....
from the French. Now, my specific question
is, must the State Department be instructed --
or should the State Department be instructed not
to sign this agreement to -- so-called -- to agree.
HMJr:
Yes.
M:
on a future lend-lease agreement until they get
such a letter, or can they go right ahead and sign
it with all the rest of the agreements? If they
don't sign it, there may be some difficulty but I
don't know whether that's a Treasury-F. E.A. point
and if it is, some -- the relationship with some --
some instruction to the State Department should go
out.
HMJr:
Will you hold the wire?
M:
I'll hold the wire a second. See what Dan's
feeling is on that.
HMJr:
All right. Just a moment, please.
(Pause)
HMJr:
Bell's going to go out and speak to Glasser and
he will call you back in a couple of minutes.
M:
Fine. Okay.
HMJr:
Thank you.
M:
See you next week.
HMJr:
Right.
M:
All right, sir.
Regraded Unclassified
217
August 18, 1944
4:50 p.m.
Donald
Nelson:
Fine, thank you.
HMJr:
Good.
N:
Are you going to be in tomorrow?
HMJr:
Yes.
N:
Well, Pat Hurley and I -- General Hurley, you
know.
HMJr:
Yes.
N:
would like to come over and see you. The
President has asked us to go to China on a
special mission for him.
HMJr:
Yeah.
N:
And we wanted to discuss some of the phases of
it with you, if we might, before we went.
HMJr:
How about three o'clock?
N:
Well, if you could make it in the morning --
it's all right with me.
HMJr:
No, because
....
N:
Three o'clock's fine with me. Pat wants to go
down to -- has to go down to Camp Meade in the
afternoon.
HMJr:
I see. Well, the morning is all gone.
N:
It 1s?
HMJr:
Yeah.
N:
Well, I'll see what -- I'll see what I can do.
HMJr:
I'm sorry, but I'm completely tied up in the
morning.
N:
You are?
HMJr:
Yeah.
Regraded Unclassified
218
- 2 -
N:
Well, it's perfectly -- three o'clock is all
right with me.
HMJr:
Well, let's put it three o'clock. If that
doesn't work, you let me know.
N:
Well, I can come over anyhow at three if he
can't.
HMJr:
Well, I'd love to do it but I've got appoint-
ments I can't change.
N:
All right. Well, I'll call Pat and see -- see
when he's going down to Camp Meade. If he can't
go with me, why, I can come to see you anyhow
and then he might see you later.
HMJr:
Okay.
N:
All right.
HMJr:
Thank you.
Regraded Unclassified
219
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
Date
August 18, 1944
TO
Secretary Mor genthau
FROM Mr. Luxford
For your information
This morning 1 expressed the view that the public and
Congress are ignorant on the ubject of Bretton Woods and that
it was important that we move forward as rapidly as possible
in educating them about the Fund and Bank proposals. I mentioned
that one sympathetic Congressman (Voorhis) had told me that
"Congress had no opinion on subject because Congress did not
understand it.
My attention has just been called to the attached report
prepared in OWI entitled "THE PUBLIC IGNORES BRETTON WOODS.
This report is based on responses received by wire between
July 10-15, 1944 from 40 editors and labor editors in 33
localities, in 23 states. These correspondents serve as regular
volunteer public opinion reporters for OWI and are requested
"to tell, not their individual views, but the opinions prevailing
among the people with whom they have contact."
The following is quoted from the report's summary:
"There is virtually no public opinion about the
Bretton woods conference, according to our corres-
pondents. There is no general discussion of it
because there is no interest; and there is no interest
because there is no comprehension of the issues
involved and the plans proposed, or of their importance.
Bankers and business circles are believed to be more
informed than the general public, yet even these are
often 'surprisingly ignorant' of the subject.
"Much of the ignorance is blamed on inadequate
publicity, which is criticized both for quantity and
quality. There should have been more, say these
correspondents; and it should have been more simple,
more direct, more educational, more compelling."
Regraded Unclassified
220
- 2 -
It should, of course, be noted that the editors
expressed their opinions between July 10 and July 15 and
that probably a more recent survey would disclose more
understanding on the part of the public. However, I do believe
that we have 8. long way to go if we actually do intend to
educate the public on these issues and that it will require
a great deal of time and patience on our part.
Neither am I impressed about giving the "opposition"
more time to fight us. We are at a great advantage right now
because the "opposition" is disorganized and the political
leaders do not know which way to turn. We can capitalize on
this situation by seizing this opportunity to educate the
public while the opposition is disorganized.
QJR
Attach.
Regraded Unclassified
221
Division of Research
Bureau of Special Services
MEMORANDUM
August 16, 1944
To:
Mr. James Abramson, War Refugee Board
EVS
From:
Everett V. Stonequist, Chief
Subject:
Enclosure
Mr. Herbert Little has asked us to forward to you
the enclosed report on public opinion about the monetary con-
ference at Bretton Woods. You will note that this report
represents opinions during the early stages of the conference,
and that the respondents have reported not their own views but
the attitudes prevalent among the people with whom they are in
contact.
A follow-up study is now being made to discover
whether public interest and understanding increased subsequent
to the period reported here.
Enclosure
RESTRICTED
222-
THE PUBLIC IGNORES BRETTON WOODS
Division of Research
Report No. C 36
Bureau of Special Services
OFFICE OF WAR INFORMATION
July 28, 1944
Regraded Unclassified
This report is based on responses received by wire. (idth 8.
few supplementary letters), July 10-15, 1944, from 40 edi-
tors and labor editors in 33 localities, in 23 states,
(States and localities listed in Appendix B).
These correspondents serve as regular volunteer public
opinion reporters for the Correspondence Panels Section.
They have been asked to tell, not their individual views,
but the opinions prevailing among the people with whom they
have contact. A distinction is made between "editors" and
"labor editors," since their reports very often show con-
sistent differences.
Excerpts are used merely to illustrate or elaborate some
of the opinions summarized in the text. They do not nec-
essarily indicate the frequency with which such opihions
are expressed.
The wires were in response to the following inquiry, sent
out by telegraph on July 8, 1944.
Request just received for prompt information
on reactions to Bretton Woods monetary con-
ference. Please give what you can on what is
being said about erence and about plans
being outlined incre for international handling
of currency questions and a world bank,
How much is known about the plans proposed,
how important are they considered, what hopes
or fears are expressed concerning their success
or failure?
What is said about the amount to be contri-
buted by this country in relation to the share
proposed for others?
Do people think that the United States stands to
benefit by such contributions to monetary and
exchange stability and long term economic
development or that only those countries will
benefit which are financially weaker or
economically less developed?
Please wire collect not exceeding three hundred
words by Monday morning if possible.
This report, in preliminary form, was issued on July 11, while
the monetary conference was still in progress. The present
version includes later responses and supplementary footnotes.
i
223
SUMMARY
There is virtually no public opinion about the Bretton Woods
conference, according to our correspondents. There is no
general discussion of it because there is no interest; and
there is no interest because there is no comprehension of
the issues involved and the plans proposed, or of their im-
portance. Bankers and business circles are believed to be
more informed than the general public, yet even these are
often "surprisingly ignorant" of the subject.
Much of the ignorance is blamed on inadequate publicity,
which is criticized both for quantity and for quality.
Thore should have boon more, say these correspondents; and
it should have been more simplo, more direct, moro educa-
tional, moro compelling.
Only a small minority know enough to have any viowpoint
at all, These divide betwoen approval of the ends and
criticism of tho means. On the one hand thore is consider-
ablo recognition of the nood for international collaboration
in the interest of full employment, economic stability, and
lasting peace. On the other hand there are fears lest the
conference come to nothing, because the members cannot "get
together," or because its aims are too "ambitious;" there
is concern lest the proposed arrangements will load us into
hazardous or unfair obligations. The editors report more
explicit criticism of the actual proposals than do the
labor oditors, whilo the latter describe moro general anxioty
about the success or failure of the conforence.
Among the minority for whom opinions are reported, belief
that tho United States stands to gain is far less strong
than the conviction that wo shall gain nothing, or at
least not as much as the others, by contributing to an in-
ternational fund and a world bank. Corollary to this con-
viction is a clearly dofinod approhension that the United
Statos will be a "sucker" nation, playing "Santa Claus"
to the world and "outsmarted" by others, especially by
England.
11
Regraded Unclassified
THE PUBLIC IGNORES BRETTON WOODS
MINIMUM OF
By and large, our corrospondonts find no
INTEREST
public opinion about the Brotton Woods
conference, They report, in fact, that a
good many people--even businessmon-do not know it is being
held, and that those who do evince a minimum of interest.
General discussion of the subject is said to be practically
non-existont, A number of respondents are distrossed that
so momentous an undertaking should romain remoto, mystorious,
and almost unnoticed.
"Know of nothing creating so little interest as
monotary conforence." E*
"Great majority do not even know conference is
in sossion," LE
"Not one in a thousand even knows there is a
Brotton Woods Conference. Most of them think
it has something to do with fuel question.
Sorry but that's facts." E
"Inquiry among my acquaintances has failed to
disclose one who has road about the conference
or has the slightest idea in the world of what
it is about. That's a tragedy when so much is
at stake." LE
"To dato, Bretton Woods and its swank environ-
ment has an aura of mystery, it has sinister
implications with a dimo novel drop curtain,
One of the most important conferences in many
years, whose results may have tremendous in-
fluonce on the shapo of things to como, the
overwhelming majority of citizens are not the
least interested in it." E
MINIMUM OF
Most of thoso who are aware that an in-
KNOWLEDGE
ternational monotary conference is being
hold are said to have no conception of
the issuos involved and tho plans proposed--or of thoir
importance. Except in "banking and financial circles"
* In identifying excerpts from respondents' reports, "E"
stands for editor, and "LE" for labor editor.
Unclassified
- 2 -
224
there is no discussion because thore is no interest, and
no interest because thore is no knowledge. The problems
being dobated aro considered technical, csoteric, abstruse--
boyond tho scope of tho average layman who dismisses them
as "somothing for tho experts to bother about." And many
who hold dogrees--oven degrees in law and economics--
appear to rank as laymon in the lore of currencies.
Moreover, while bankers and financiers are said to be some-
what moro intorosted than the general public, and while
many assume from tho outsido that "bankers may know what is
involved," a few who have made direct inquiries find that
oven bankors and brokers show "a startling lack of know-
ledge" about the actual problems and proposals discussed
at Brotton Woods. A confidential report of a meeting of
a state banking association describes the members as sur-
prisingly ignorant of the agreement reached. "They recog-
nize importence of stabilization after the war but very
foggy as to the details, confusing the 'gadgets' with the
over-all policy of international planning affecting ex-
ports and imports."
A number of correspondents point out that most people
have no notion of the bearing monetary factors may have
on national oconomic conditions and on their own personal
fatos and fortunos. This ignorance is seen as a two-fold
menace. In the first place it provents full rocognition
of the importance of the conference and the need for ful-
filling its objectivos. In addition, it leaves the public
vulncrable to specious arguments about the gold standard
and tho fonsibility of "economic isolationism" as well as
to "bad propaganda by onemy nations." The need to under-
stand the significance of the agreements reached at the
conforence is viowed as the more urgont sinco the issues
"will probably be injected into the coming campaign" and
bocomo "part of a political controversy."
"I fear Bretton Woods conference too abstruse
and involved for average citizen to have any
comment one way or the other." LE
"No concept importance of plans nor what about."
LE
"General public seoms virtually ignorant and
disintorosted toward monetary conference," E
"Overwhelmingly majority reaction neutral be-
cause of ignorance. Typical reply: 'It's
too complicated.' E
Regraded Unclassified
- 3 -
"Have net no one who understands issue: Can
find no one interested enough to discuss same
Conference and thomo of same about es remote
from the general public as price of eggs in
Kamchatka." LE
"I doubt whether one person in a hundred thousand
has even the haziest idea of the effect of mone-
tary changes on his own privato affairs." E
"Fow understand relation of Monutory Fector to
clearance of international trensuction or
latter's relations to national enjury. Have
only vague nótions about currency value in terms
of international exchange. Therefore great
majority unable to follow proceedings intel-
ligently. Vulnerable to arguments of possi-
bility of more simple and realistic solution
to over-all external stabilization." E
INADEQUATE
A largo portion of the blame for the al-
PUBLICITY
most universal ignorance is laid on de-
foctive publicity and the lack of an edu-
cational campaign. Responsibility for the informational
shortcomings is divided betwoen the media and the govern-
mont. There is somo foeling that "pro-publicity" should
have been issued to prepare the public for following the
conference with intelligence and interest--storics in the
press and on the air, a simple pamphlet for bankers and
business groups. Criticisms of current publicity divide
botween complaints about bad press play and scant radio
notice on the one hand, and complaints that the stories
released were "tedious" and difficult, dwolling on tech-
nicalities rather than on the basic implications for the
average citizon. One editor adds that points of disagroe-
ment were stressed, rathor than the nood for reaching
agreement.
Simple and understandable accounts are domanded, and some
"humanizing" of the proceedings by acquainting tho public
with the individuals taking part in them. A labor editor
asks plaintively if any reprosontativos of the labor press
were invited to attend, pointing out that some of them
would be particularly well qualified to do the necessary
information job. One or two others mention the lack of
labor ropresentation more as a slight to labor than as
a lost informational opportunity.
Regraded Unclassified
- 4 -
225
The strong emphasis on the informational aspect is the more
striking in those brief, telegraphic replies, since no
question was asked about publicity; although in large
measure this omphasis may be attributed to the fact that
the respondents are all nowspaper poople.
"Wholo business is so poorly publicized that
thoso queried frankly stated did not know the
completo picture nor what to form opinion on," LE
"Rank and file has not picked up two vossions as
a matter of common discussion primadly because
the issues have not been cloarl ryldned." LE
" ' (A local bankor) blamos government partly for
this lack of knowledge (among bankers). Says
some U.S. agency should have gotten out briof
pamphlet, months ago, distributed to every banker
in U.S. outlining simply and cloarly the agroe-
ment reached by experts and the agonda at
Brotton Woods." E
"The thing has never been prosented to them
simply and sympathetically by any commanding
personality of government. It ought to bo." E
"Poople are waiting to have monetary conforence
issues explained in simple understandable terms," E
"Suggost that nows about Brotton Woods con-
ferenco deal with basic problems of increased
foreign trade, roconstruction problems, indus-
trialization of undeveloped countries and such
gonoral principles as thoy will affect American
industry and full employment in the postwar
poriod and the necessity for a stable monetary
system to make thoso things possible. Whon tho
reports are narrowed down to monotary problems
alono there is nothing for tho average person
to discuss. So for the newspapers have made
it a conference of oxperts and complicated
money quostions."
"Nows stories have featured apparent points of
disagreement rather than tho necossity of get-
ting togother on a workable solution of tho
problems." LE-
Regraded Unclassified
- 5 -
"The labor papers would work with the govern-
mont a hundred percent, provided they were
drawn into the picture carly enough. But
they don t get asked except when it is purely
labor." LE
GENERAL
The only opinions reported come from a
ATTITUDES
very small minority--a fow say chiefly
bankors, businessmen, or professional
groups. Where opinions are held they are said to be
mixod. Occasionally they are described as "following
party lincs." The fow who are equipped to think about
the subject apparontly approciate the importance of the
conforence. Over-all reactions among these few seem to
split rathor evenly between the favorable and the un-
favorable, with the labor editors leaning slightly toward
the former and the oditors toward the latter. Thore is a
hint, however, that the "antagonistic attitudo of bankors"
--whose views would bo represented by the editors rather
than the labor oditors--is "slowly being dissolved."
It is chiefly the labor oditors who roport fear that the
dologatos will fail to "got togother" and a "vague hope"
that tho conference will succeed. Yet the editors are
more articul to in strossing the neod for international
collaboration in the interest of maintaining full employ-
mont, averting oconomic disaster, and promoting a stable
peace. Despite the "appalling ignorance" of the public
about the conference and its objectives, there seems to
be a widespread recognition of the growing need for in-
ternational collaboration in general, and a readinoss to
understand that this collaboration must be economic as
well as political. The feeling is, however, that this
readiness must be sparked by a comprehension which at
present is lacking.*
"Professional groups lawyers doctors bankers
etc. absolutely approve--realize importance of
this matter and favor adoption of American plan
instead of British." LE
"Fear is expressed that the countries will not
unito," LE
*For trends in recent pùblic opinion stúdies regarding in-
tornational collaboration, see Appendix A,
Regraded Unclassified
6 -
226
"I believe our people are definitoly better in-
formed about the need for international coopera-
tion in whatover fiold is nocossary then they
wore after the first World War." E
"Consonsus is that some typo of fund is more
essential than over before and that somo pro-
posal of the typo outlined for a world bank and
international handling of currency must be adop-
tod if cconomic disastor is to bo averted. Bo-
liof is that international monotary fund will
definitoly promote exchange stability among the
various national currencios and facilitato multi-
latoral payments, thoreby encouraging expansion
of international trado and resulting in growth
of employment and roal incomes in member
countries. E
"Thoro is a fooling among thoughtful citizons
that this conference whatover it is all about
is tronendously inportant and that collaboration
with other nations in trying to solve world
oconomic problems must bo carried on permanontly.
Fooling is gonoral that prosent war is result of
failuro of nations especially of the United
Statos to work together on world oconomic problems
including monotary." E
"Even if participation in international oconomic
cooporation should be more costly to U. S. in
torms of dollars than economic isolation would
be--and this is unlikely to be truo--tho annual
cost would certainly not exceed the woekly cost
of waging war." E
PRO'S AND
It is in keeping with the general dearth
CONS
of knowledge that remarkably little is
said of the actual proposals. It is
noticoable too that, whereas approval tonds to be attached
to the gonoral aims and objectives of the conference, dis-
approval and misgiving are somewhat more specific and more
closely rolated to the proposed plans.* Such disapproval
* Editorial opinion precoding and during the opening days of
the conforence also showed opposition contering on specific
features of the plan rather than on general objectives, with
which the majority expressed sympathy, During the period
July 3-17, about equal minorities definitely favored and
opposed the proposals while n majority viewed them with cool-
noss or suspicion. In the poriod July 12-20, opposition was
voiced by & cloar majority, 15 out of 28. See Analysis of
Editorial Opinion, No.'s 57, 58 and 59, July 14, July 21, and
July 28, 1944; Division of Research, Buroau of Special Services,
OWI.
Regraded Unclassified
- 7 -
or approhension is reported more by editors than by labor
oditors. It may be significant in this connoction that
business groups are folt to be more versed than the general
public in what the plans roally are, and that editors are
moro conversant than labor editors with the opinions of
business groups.
Specific approval of the sizo of this country's contribu-
tion comos from several correspondents who say it is con-
sidered fair onough, two of thom ascribing assent to a
foeling of moral obligation. The only other commendation
of specific features (as opposed to general objectivos)
is a statement by a labor oditor that the Amorican plan
is favored rather than the British.
On the whole the fears are more vocal as well as nore
explicit than tho hopos expressed for the conferonce,
Among adverse commonts, ono oditor reports belief that
tho amount suggested for the international stabilization
fund is too largo. Several say that the quota system is
folt to place an unfair burden on the Unitod States, but
there are fower expressions of objection than of acquios-
cence in the sizo of our quota. Morcover, thore is a hint
that Russia's dosire to incroaso her quote cast a more
favorable light on the size of ours--sorving as a ro-
mindor that the power of a nomber nation would be in pro-
portion to the size of its contribution. Other misgivings
voiced occasionally are: that the suggosted arrangoments
will "encourago inprudent berrowing by foroign countries
at the exponse of the Unitod States;" that this country
night be lot in for "hazardous commitmonts;" that the
plans "might undorwine the U.S. monetary system;" that
they are over-ambitious for the present; that they are
dangorous because the oconomics of somo countries are
unsound.
Most of those commonts como from oditors. One of the
fow direct criticisms of the proposals reported by a
labor oditor takes tho form of suspicion that the plans
are being shaped by financiers who will reinstate the
gold standard as a means to implomonting monopolies and
Regraded Unclassified
227
- 8 -
cartels. A number of oditors, on the other hand, in-
dicate that business and banking interests hope for the
return of the gold standard.*
"I don't believe there is any serious objection
to tho amount to be contributed by this country;
tho fooling is that the war has touched us more
lightly than other nations, and that our tromen-
dous resources imposo án obligation to carry a
greater sharo of tho burden than loss fortunate
nations." LE
"(Thc bankers') distrust of U. S. contribution
to general stabilization fund was partly overcome
by news that Russia wanted to incroase its con-
tribution, giving thom idea that greater tho
contribution the greater the influence." E
"Provailing viow is that conference is pro-
mature and will como to nothing largely because
too much is boing attemptod." E
"Spocialized groups mostly banking and world
trading circles tond to be critical of Secro-
tery Morgenthau and particularly of Harry White
from long-standing antipathy. Therefore most
talk to be hoard is dubious. Those specialized
groups fully recognize importance of inter-
national handling of currency and bonefits to
United Statos thoroby. Their doubts concorn
particular mothods proposed. There is con-
siderable feeling that funds will largoly be
contributed by big powers particularly Unitod
States and will drain sieve-like through smaller
* The analyses of oditorial opinion referred to above (foot-
noto, p. 6) showed that suspicion of Britain was voiced by
some, and dosire for tho strict gold standard by almost all,
of those dofinitely opposed to the plan. The isolationist
press condemned the plan as a schome to get our gold. A
different type of objossion, especially in the later editori-
als, was based on the argument that the problem of exchange
stabilization is identical with that of getting individual
nations to follow sound monoy policies and because the plan
contains no provisions for compelling the members to follow
such policios. More simply stated, they want the gold stand-
ard and do not like the monotary and fiscal theories of Baron
Koynos which thoy think the plan oncourages.
Regraded Unclassified
- 9 -
powers. Numerous specialists feel more basic
and fundamental reforms would be attained if
internal economies of various countries could
be rendered more sound,' E
"Suspicion that the international financialists
are gotting together to retain gains made during
war and to reinstitute the gold standard or managed
currency system which will implement monopolies
and cartols, and be used as a fulcrum to dostroy
revolutionary and popular movements for social
and economic advancement by the working people
of the world." LE
"They want return to gold standard and fact
that Koynes is willing to use gold as 'yardstick'
(though not as base) has mollowed thom somewhat." E
WHO STANDS
Less than half of the respondents comment
TO GAIN?
directly on whother the United States stands
to gain or to lose by our proposed contri-
bution to an international fund and a world bank. Among
this minority tho bolief that this country will gain as much
as others/fer loss frequent than the belief that we shall
not gain, or that others will profit more than we do through
international oconomic stabilization and free exchange of
goods. Conviction that others will gain more than this coun-
try is reported more often by oditors than by labor editors.
Belief that wo are slated to "pay the lion's share" is not
invariably coupled with resentment, sinco somo feel that
our greater resources and slighter burdon of war make such
a balance "norally right." One oditor compares attitudes
on this score with early attitudes toward lond-lease. There
is also somo fooling that oven though others may gain more
than 170 do, the proposed arrangoments are ossontial to our
future welfare.
Acquiesconce is by no means predominant, howover, among
those who feel wo shall bo "footing the bills of the world."
A substantial minority (about one-fourth of the respondents)
roports concern lost this country play the rolo of "sucker"
among nations and ruin itsolf in an attempt to be "Santa
Claus" and start a "European WPA." Corollary to this worry
is the misgiving that England will "outsmart" us bocause our
reprosentativos are not as sly and as exporienced as hers,
or that England and Russia will "gang up on us." This note
is less conspicuous for its frequoncy than for the fact that
Regraded Unclassified
- 10 -
228
it is clearcut and definite in the midst of provailing
vagueness. Dospito its intensity, it is voiced loss often
than the conviction that offective international coopera-
tion is imporative for the sake of the postwar oconomy and
the maintonance of poace.
"Peoplo bolieve vaguely the US would benofit by
monotary and exchange stability and hope con-
feronce succoods in ostablishing world bank." LE
"Bolief general hore that the conference is one
of many nocessary stops toward laying the ground-
work for more lasting peace, that US will share
in common oconomic and political bonofits. E
"Have found none who bolieve this country would
benefit. Attitude much like that which first
grooted Lond Lease proposal." E
"Popular conviction now as in former years scens
to be other pooples will naturally profit more
from our cooporation than wo from theirs." E
"Cannot find anyone who bolieves United States
will bonefit as nuch ns England and therefore is
shruggod off as boing another of Churchill-Keynes!
clover schomes. In fact some think England and
Russia ganging up there. All this indicates
entire lack of knowledge even ationg those
supposed to be initiates. My bolief reason is
lack of clear statements to public in advance
of moeting and now too lato to nake proper in-
prossion." E
"Ono or two had idea wo would be contributing
noney to an European WPA system and would pre-
for WC gave it to our own people instend." LE
"The chief danger in any international postwar
program is the foar that Uncle Sam will play
'Santa Claus.' I doubt if the war has beon
brought close enough home to any of our people
except those who have lost sons and brothers
and husbands to make us as farsighted as we
ought to bo in postwar doalings." E
Regraded Unclassified
- 11 -
"Financial circles genorally agree that U.S.stands
to benofit by such contributions to monotary and
exchange stability and long-term economic develop-
mont, although foar is expressed by several that
England may 'out-trado' U.S. because of former's
longor and wider experience in international mone-
tary mattors. One reaction was that US is ropre-
sontod by few outstanding mon in financial field,
de contrasted with England's dologation, and that
Encland is dictating policies." E
Regraded Unclassified
- 12 -
229
APPENDIXA
Available figures indicate that desire for international
oconomic collaboration after the war lags far bohind de-
siro for joint military and political efforts to maintain
peace. Public opinion studies during the course of the
war have shown a strong and growing majority in favor of
an international socurity organization. Recent studios
by the National Opinion Research Contor (April, 1944) and
the Iowa Boll (July, 1944) show 80% of the respondents
favoring active participation by tho Unitod States in an
international organization to prevent future wars. Ac-
cording to tho Fortune Survoy of July, 1944, among college
youth the approval of such participation risos to 94%
Far loss study has boon dono of opinions about postwar
oconomic collaboration among nations. According to surveys
conducted by tho Survoys Division of OWI during 1943, only
one-third of the people have hold the opinion that we should
allow other countrios to soll moro goods horo after the war;
and almost half (46%) feel that it is possible for this
country to have prospority at the samo time that other
countries are having doprossions. Studies made in January,
Juno, end November showed this minority remaining almost
constant throughout the year. In January, 1943, 61% said
we should not try to seo that there is no unemployment in
other countries after the war (25% said we should; 11% had
no opinion). (What the Civilian Thinks, Memorandun No. 82,
Survoys Division, Buroau of Spocial Services, Office of
War Information, July 18, 1944.)
Among business executivos responding to a Fortune Management
Poll (May, 1944) a large majority believed that an intor-
national organization to keep the poace would greatly in-
prove prospocts for an incroase in United Statos foreign
trade after the ver. Of thoso executives, 30% said thoir
own companies would bonofit directly by such an increase,
28% said they would bonefit indiroctly, and 37% said thoy
would not bonofit noticeably.
Regraded Unclassified
- 13.-
APPENDIX B
ANSWERS TO TELEGRAPHIC INQUIRY, BY PANEL, STATE, AND LOCALITY
Total: 40 respondents, from 33 localities, in 23 States
Editors (E): 21 respondents, 20 localities, 18 States
Labor Editors (LE): 16 respondents, 15 localities, 11 Statos
Alabama
Mississippi
Birmingham (E)
Biloxi (LE)
Gulfport (E)
California
Fontana (LE)
Missouri
San Francisco (E, LE)
Kansas City (E)
St. Louis (2E, LE)
Connecticut
Hartford (E)
New Jersey
Montclair (E)
District of Columbia
Washington (LE)
Now York
Buffalo (E)
Georgia
Now York City (2 LE)
Atlanta (E)
Rochester (LE)
Watertown (E)
Illinois
Chicago (E)
North Carolina
Asheville (E)
Indianc.
Evansville (LE)
Ohio
Michigan City (LE)
Cleveland (LE)
Iowa
Orogon
Dos Moinos (E)
Portland (E)
Louisiana
Pennsylvania
New Orleans (E)
Philadelphia (E)
Massachusotts
South Carolina
Boston (E)
Greenwood (E)
Michigan
Virginia
Detroit (LE)
Richmond (E)
Minnosota
Washington
Minnoapolis (IE)
Spokane (E)
Tacoma (LE)
Wisconsin
Konosha (LE)
Milwaukee (LE)
Regraded Unclassified
230
August 18, 1944
Mr. Gaston
Secretary Morgenthau
I have received your memorandum of August 16th in
regard to my using a Coast Guard plane.
Would you please follow through on this for me
with Admiral Waesche and Mr. Forrestal. Famished -
Regraded Inclassified
231
August 16, 1944.
Memorandum
TO:
Secretary Morgenthau
FROM: Mr. Gaston
A regulation contained in the Navy Department Bulletin
for July 31 seems to require that before using a Navy or
Coast Guard plane you would have to apply to the Army and
be refused, then apply to the Secretary of the Navy and
state that anyother form of transportation was unavailable
or impracticable. McCaffery called it to my attention and
was disturbed about it. I thought it a mere routine order
that did not affect your special arrangement and talked
with Waesche, who was of the same opinion. However, he
talked with Bard and Bard said that the present arrangement
would stand at least until Forrestal returns, at which time
Waesche will talk to Forrestal to confirm the special arrange-
ment with Frank Knox.
wr
Forestal.
Regraded Unclassified
232
TREASURY DEPARTMENT
forget-
INTER OFFICE COMMUNICATION
DATE Aug. 18, 1944
TO Secretary Morgenthau
FROM Mr. Shaeffer CoP.
The memorandum from President Roosevelt to yourself
expressing his pleasure over the results of the Fifth War
Loan was never made public.
Mr. Hassett's office at the White House refused to
cable to the President the changes made in the original
statement with the result that Mr. Roosevelt's approval
was not received here until August 14, or ten days after
the results of the drive had been made public.
The White House would not make the message public,
and Mr. Gaston agreed with me that the President might be
embarrassed by the belated publicity attending his message.
Regraded Unclassified
TO:
233
+-4 1-4t - +
Du Latta called saying
Pres. approach- -
Called Bob-
Gaston says the late to
release
Fred Smith
Room 2901
234
Mr. Maurice Latta
August 4, 1944
Mr. Fred Smith
Attached (exhibit A) is a copy of the memorandum received
by the Secretary. Exhibit B is a suggested way of changing it
to avoid the difficulties involved in the President's quotation.
The last part of the President's statement cannot be used
because it is untrue. The sale of Bonds does not in any way
eliminate or reduce the debt which will need to be paid at some
future time. The only thing that will reduce post-war debt is
increased taxes. Hence, it would seem wise to avoid the entire
subject and change the statement in accordance with the suggestion
as in exhibit B.
I have just checked with the Secretary, and he agrees
with this procedure.
FS:gr
Regraded Unclassified
Paturday 235
SECRET
E
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
and and forces supplied
Fifth War Loan has passed the 20 billion
with every this Phis may
me dropt at
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 reducing the debt
that must be paid in later years.
Very respectfully,
Henry W. Putnam (signed)
herd to drive m to and Oilm Taky
HENRY W. PUTNAM,
Captain, A.C.
Lending their our money to pay
in 100 in
Regraded Unclassified
8-4-44
236
The Secretary of the Treasury, Henry Morgenthau, Jr.
today received the following message from the President:
"I am very happy to hear that the Fifth War Loan has
passed the twenty billion dollar mark. This proves that the
American people understand the great objective of lending
their own money to help pay the cost of this war, and to
keep the Armed forces supplied with everything they may
need to drive on to Berlin and Tokyo in the shortest
possible time. Franklin D. Roosevelt."
Qq'd G
Sen one
phone
LATTA
MATRICE
Regraded Unclassified
237
MEMORANDUM FOR THE SECRETARY.
August 18, 1944.
Mail Report
This week's mail was a repetition of that re-
ceived last week. Tax mail was light, and bond mail
heavy but monotonous. A few questions about tax
rulings; one suggestion about the sale of car use
stamps; and a number of urgent requests for refunds
made up the entire tax correspondence.
Federal Savings and Loan Associations have been
carrying on a drive to be allowed the same privileges
as banks in cashing bonds over-the-counter. There
was one unfavorable comment on this over-the-counter
plan -- otherwise, no further reaction to it. Most
of the replies to the redemption slip explained
personal emergencies. However, one woman stated that
she regularly cashes her bonds and deposits the money
with the Minneapolis Mutual Life Insurance Company.
After a few weeks in which only 30 or 40 bonds were
submitted here for redemption, the number has again
risen with 69 last week and 76 this. There were
20-odd complaints about delays in handling bonds or
in paying interest.
The number of out-of-date checks being sent in
continues to increase. Quite a few of these come from
service men who have been out of the country for the
year which is allowed as the valid period. It would
seem that this problem may increase during the coming
months.
Only one small donation reached the Treasury
directly. However, two others -- one for $1,600 and
one for $400 -- were submitted through the Navy Depart-
ment.
There has as yet been no comment on the Secretary's
trip or radio speech from abroad,
Gabwille E. Forbush
Regraded Unclassified
238
General Comments
G. M. Wilson, Credit Manager, M. D. Muttart Limited,
Distributors of Lumber and Building Supplies,
Edmonton, Alberta. We are writing you with reference
to $4,327.16 which is due us on the account of the
U. S. Public Roads Administration and the R. Melville
Smith Company. # HH We have not heard anything on
this account for almost a year, except the odd letter
from one Department to another, telling us to write
here and write there. Consequently, we have to appeal
to you for this balance. It is mainly for money which
we paid out to other Sub-Contractors in cash. We are
a small firm and right now we desperately need the
money. I appreciate the fact that writing to the Head
of your Department directly, is probably unorthodox.
Nevertheless, we have exhausted almost every other
means of getting even a letter back with regard to the
balance of this account, and have been unsuccessful.
We have sent the account in greatest detail to the various
people who have been so good as to request same and see
no reason why the account should not have been paid long
before this.
E. H. Bruening, Lt. Cmdr. U.S.N.R., American College
of Dentists, Tucson, Arizona. Allow me to compliment
you and your fellow workers on the very remarkable suc-
cess of the Bretton Woods conference. This may prove
to be the MOST IMPORTANT step toward a foundation for
a prolonged peace among the important nations of the
earth.
Mrs. Melvin Piff, Chicago, Illinois. Perhaps my re-
quest is unusual, but I wonder if you can help me
solve a problem. I am a Private's wife, and six months
ago I gave birth to a son. I've been managing to
get myself back to normal as best as I can on my allot-
ment. But my biggest problem is the necessary dental
Regraded Unclassified
239
- 2 -
care. Is there any way I can get a loan to pay for
this care? I have been having my teeth fixed at the
North Western Dental Clinic (where the work is done
by Army and Navy men). They require you to pay for
the work as it is completed, and sometimes there isn't
always the necessary funds available. I am sure you
can understand that $80 a month goes so far, and no
further. Is there any way I can get a loan to pay for
this work? # # Then, as soon as I get my eyes fixed,
I plan on going to work part time in a nearby war plant
and repay all my debts. I suppose this all sounds very
complicated and stupid. But it boils down to the fact
that my teeth and eyes need immediate care and I can't
manage it on $80 a month, so I'm asking for assistance
until I can go to work. I don't ask for charity.
There are many who can't work that need that money.
I can work, and will do so as soon as possible. I am
asking only for temporary aid. I have nothing to offer
for security - except my husband's position - Private
in the United States Army.
Thank you kindly for
any assistance you may offer.
--We consulted War Department and wrote her we had
informal advice from them that she should apply to
the Red Cross Chapter in Chicago. She replied--
Thanks for the advice. I contacted the Red Cross.
They told me in no uncertain terms they were no loan
agency, and if I needed money, I should go to a Local
Loan Agency. Sorry I bothered the Secretary, or the
Red Cross. War wives aren't supposed to be people,
anyway. For the duration I'll hide my head.
Regraded Unclassifie
240
- 3 -
Favorable Comments on Bonds
George M. Craig, President, Merchants National Bank,
Port Arthur, Texas. I noticed in the paper about a
week ago that there was some prospect of your per-
mitting the holders of Series E Bonds to borrow money
from banks when they had pressing need. Our observa-
tion has been that there are many of these Series E
Bonds sold when the owner only requires money for a
short time, or only requires a portion of what he
has invested. I believe that if banks were permitted
to loan on these Series E Bonds, that the holders of
them would keep them instead of cashing them in. * *
*
Regraded Unclassified
241
- 4 -
Unfavorable Comments on Bonds
Mrs. Charles J. Zurbarik, Bandera, Texas. I am writ-
ing you in regard to some bonds I have never received.
My husband is now a German prisoner and has been for
over a year. He was captured April 24, 1943. He has
been putting $27.50 in bonds monthly since then and
has had it arranged so that they were to be sent to me.
I have never received any of them as yet. I would like
for you to have them traced and sent to me immediately.
Ople Ann Akers, Postmaster, Lynch, Kentucky. I would
like to know if there is any inheritance tax charged
when a beneficiary cashes a Series E Bond. There is
a rumor circulating in town that there is an inheri-
tance tax of forty percent on each bond cashed by a
beneficiary. Almost all bonds written at this office,
and over the Company payrolls, have been made "payable
on death", and since this rumor has started, everyone
wants their bonds changed to "co-owner". I asked the
Collector of Internal Revenue from this County, but
he was not sure, but thought that there had to be an
estate of $10,000 before an inheritance tax was charged.
It is taking quite a bit of our time having these bonds.
changed from a beneficiary to a co-owner, so will you
please tell me something definite?
Vincent A. Galligan, Taunton, Massachusetts. Back in
February, 1934, I sent to your Department for payment,
the following: W. S. Certificate No. 21503472, Series
1918; 2 registered stamps affixed; reg. #4065; City Hall
Annex, New York City; 1 unregistered stamp Series 1919,
affixed - mutilated. From your office on March 28,
1934, I was advised these stamps had been received by
you on February 5, 1934. I was requested to submit a
statement, since the stamp purchased in 1919 was im-
properly affixed and mutilated, and an affidavit,
Regraded Unclassified
242
- 5 -
properly notarized, showing how this mutilation came
about. * # I wrote your office to the effect that
the stamp in question had been mutilated by M. Joseph
'Neill, now deceased, then Assistant Postmaster at
Taunton, Massachusetts, he having stated that the
1919 stamp should not have been attached, as was the
case. He attempted to remove it, and in so doing,
caused the mutilation of the stamp. # # # Since that
time, over nine years, I have heard nothing from your
office whatsoever, though I wrote you on January 9,
1940, and again on March 5, the same year. I am dis-
inclined to believe that even with a war on, and your
Department as busy as the proverbial paper-hanger
(and I don't mean Adolf -- God knows he's busy enough),
that inefficiency has come so far as to be complete
neglect. Your attention to this matter immediately
will be very greatly appreciated.
Anonymous - Postmarked Washington, D. C. I return
herewith slip which came to me with remittance for
Series E War Bonds cashed. I agree with everything
on it, but it is your fault, not mine, that these bonds
were cashed. It is your red tape. The only reason
they were cashed is because they were turned over to
me on a debt, and as you will not re-issue bonds in a
new name, all I can do is cash them, as otherwise, if
I were to die, they would again become the property of
the person who turned them over to me, and my estate
would have to take anything (or nothing) that the
original owner would specify. (They were made to the
debtor as owner, with me as co-owner). The debtor will
not make them to me as owner in the first place because
they are on a payroll plan, and he wants credit for
buying them. If you would change your rules 80 that
at least one of the names on a bond could be changed,
I would have them re-issued instead of cashing them in.
I do not cash any of those I buy directly myself.
I know it is wasted time sending this to you as your
Regraded Unclassified
243
- 6 -
organization is full of people who think they know
better than anyone else what is good for them, and
in true totalitarian style will force it down their
throats whether they like it or not, but I say it
anyway.
Cloyd R. Bossler, Johnstown, Pennsylvania. I under-
stand it cost $20,000.00 for the Commander-in-Chief
and Candidate for President, to make that little cruise
and fishing expedition. Is that what the War Bonds are
being used for that we are being urged to buy more of?
I would like to see the bond sales chart when that news
becomes generally known. # % # Why should the proceeds
from War Bonds be used to finance a political campaign?
I saw where one news commentator remarked that Mr. Dewey
could also make a trip to the Hawaiian Islands. True,
he can, but not at the expense of the taxpayer.
Regraded Unclassified
244
- 7 -
Unfavorable Comments on Taxation
Gerald R. Coonradt, Oak Park, Illinois. In the year
1942 I lost about $1,450 when the U. S. Government,
through condemnation proceedings, took from me 40
acres of land I owned in Florida. I had invested
about $1,800 in the property and received about
$350 in return. I did not receive the check in pay-
ment until early in 1943 and when about to make out
my income tax return for 1942 I asked a Deputy Col-
lector of Internal Revenue if I could deduct the loss
from my 1942 income, his answer was that I could not,
inasmuch as I did not receive payment for the property
until 1943. I then filed a simplified return, not
deducting the loss. Later I found that the Deputy was
in error and therefore on March 15, 1943, I filed an
amended return, and claim for refund of $70.06. On
November 25, 1943, I received a letter from the
Collector here saying no action would be taken on the
claim until after March 15, 1944. About a month ago
I wrote asking what action had been taken, but as yet
have received no reply. I have a legitimate claim to
a refund and would like to have some action on the
matter.
Regraded Unclassified
245
August 18, 1944
My dear Cordell:
Some time ago we sent over to the State
Department a proposed statement for the
President to issue in regard to taking care
of the civilian population in Italy.
I would appreciate hearing from you
as to whether or not this proposed statement
meets with your approval.
Sincerely yours,
(Signed) Henry
Honorable Cordell Hull,
Secretary of State,
Washington, D.C.
Regraded Unclassified
246
FORVICTORY
TREASURY department
BUY
ENITED
STATES
WAR
BONDS
PROCUREMENT DIVISION
-
STAMPS
WASHINGTON 25
OFFICE OF THE DIRECTOR
August 17, 1944
SECRET MEMORANDUM TO THE SECRETARY:
There is submitted herewith the weekly
report of Lend-Lease purchases.
A requisition has been received for
U. S. S. R. for 1,801,900 feet of marine
cable at a cost of approximately $753,000.00.
John A. Walsh
Acting Director of Procurement
Sha
247
BECTIST
LEND-LEASE
TREASURY DEPARTMENT, PROCUREMENT DIVISION
STATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND
DELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS
AS OF AUGUST 9, 1944
(In Millions of Dollars)
Administrative
Miscellaneous &
Total
U.K.
Russia
China
Expenses
Undistributed
Allocations
$5522.2
$2627.0
$2257.3
$133.9
$15.9
$488.1
(5514.2)
(2627.0)
(2257.3)
(133.9)
(15.9)
(480.1)
Requisitions
166.3
$ 21.7
$ 69.2
$ .2
-
$ 75.2
in Purchase
( 150.3)
( 19.8)
( 84.7)
( .2)
I
( 45.6)
Requisitions not
$ 85.3
$ 35.2
$ 41.4
$ .1
-
$ 8.6
Cleared by W. P. B.
( 107.6)
( 38.2)
( 49.2)
( .1)
-
( 20.1)
Obligations
$3866.2
$1951.2
$1564.6
$ 63.0
$13.3
$274.1
(Purchases)
(3847.8)
(1948.4)
(1554.1)
( 63.0)
(13.2)
(269.1)
Deliveries to Foreign
$2266.4
$1408.9
$ 784.7
$ 24.1
-
$ 48.7
Governments at U. S.
(2240.7)
(1401.1)
( 768.5)
( 24.0)
-
( 47.1)
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 August 2, 1944.
Regraded Unclassified
248
C
0
P
Y
FEDERAL RESERVE BANK
OF NEW YORK
August 18, 1944
CONFIDENTIAL
Dear Mr. Secretary:
Attention: Mr. H. D. White
I am enclosing our compilation for the week ended
August 9, 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,
(Signed) H. L. Sanford
H. L. Sanford,
Assistant Vice President.
The Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington 25, D. C.
Encl.
Copy: imc: 8/22/44
Regraded Unclassified
ANALYSIS OF DRITISH AND FRENCH LOCOUNTS
Strictly
(In illions of Dollars)
Week Ended August 9. 1944
Confidential
BANK OF ENGLAND (BRITISH GOVERNMENT)
BANK OF FRANCE
PERIOD
DEBITS
CREDITS
Net Incn, (+)
liet, Incr. (+)
Gov't
Transfers to
Proceeds of
Transfers
Official
Sales of
Expendi-
from
Other
or Decr. (-)
Total
Total
or Decr. (-)
Securities
Official
Total
tures
Other
Total
Credits
in $ Funds
Debits
Gredits
in $ Funds
Canadian
(Orricial)
Australian
Debits
(a)
Account
Debits
Credits
Gold
(S)
Account
(c)
(d)
(e)
(e)
(d)
First year of war (g)
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
lar period through
December, 1940
2,782.3
1,425.6
20,9
1,335.8
2,793.1
2,109.5
106,0
14,5
561,1
+ 10,8
878.3
1,098.4
+ 220,1
Second year of
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
L8
- 30.1
Third year of war (1)
1,235.6
904.8
3.7
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 war(1)
764.0
312.7
170.4
280.9
1,072.3
-
0.5
155.1
916.7
+ 308.3
10.3
1.0
- 9.3
1943
42.4
16,8
10,6
22,0
86,2
-
-
15.0
71.2
+ 36.8
-
-
-
September
October
38,2
16.0
-
22,2
115,4
-
-
40.5
74.9
+ 77.2
-
-
-
November
65.9
42.4
509
17,6
89,0
-
-
3.5
85.5
+ 23.1
-
-
-
98.1
16.3
81,8
134.5
36.5
98.0
+ 36.4
.
-
-
December
-
-
-
1944
-
January
44.8
22,2
10.6
12,0
127.5
-
-
1,0
126.5
+ C2,7
-
-
-
143.6
14.3
2.1
127.4
144.5
-
-
29.0
115.5
+ 0.7
-
-
-
February
71.1
12.5
69.3
133.3
24,5
108,8
- 19,6
-
-
-
March
152.9
-
-
April
134,8
14,9
-
119,9
122,2
-
-
27.5
94-7
- 12,6
-
-
-
May
125.1
28,8
8,1
88,2
164,7
-
-
37.0
127.7
+ 39.6
-
-
-
June
101.9
24.1
77.8
95.7
-
28,0
67.7
- 6.2
-
-
-
-
-
July
150.9(r)
12.3
7.3
131.3(r)
85.9
-
-
10.0
75.9
- 65.0(x)
-
-
-
August
Week Ended
July 19, 1944
12.3
4,7
-
7.6
12.7
-
-
-
12.7
+ 0.4
-
-
a
61.4
7.1
52.0
10.3
-
-
-
10,3
- 51.1
-
-
-
July- 26, 1944
2.3
August 2, 1944
18.9
6.5
3.2
9.2
41.0
-
-
-
41.0
4 22.1
-
-
-
10.0
3.2
1.1
5.7
7.3 (k)
-
-
-
7.3(k)
- 2.7
-
-
a
-
August 9, 1944
Average Weekly Expendi tures Since Outbreak of Jar
See attached sheet for footnotes,
France (through June 19, 1940) 519.6 million
England (through June 19, 1940) $27.6 million
England (through June 20, 1940 to Earch 12, 1941) 354.9 willion
England (since Larch 12, 1941) 21.5
million
Regraded Unclassified
(a) 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, Wresh apparently represent the
proceeds of official British sales of American securities, including those effected through direct negotiation. In addition
to the official selling, substantial liquidation of securities for private British account occurred, particularly during the
early months of the war, although the receipt of the proceeds at this Bank cannot be identified with any accuracy. According
to data supplied by the British Treasury and released by Secretary Morgenthau, total official and private British liquidation
of our securities through December, 1940 amounted to 8334 million.
(c) Includes about $85 million received during October, 1939 from the accounts of British authorized banks with New York banks,
presumably 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
receipts. See (k) below.
(d) Reflects net change in all dollar holdings payable on demand or maturing in one year,
(e) For breakdown by types of debits and credits see tabulations prior to March 10, 1943.
(f) Adjusted to eliminate the effect of $20 million paid out on June 26, 1940 and returned the following day.
(g) For monthly breakdown see tabulations prior to April 23, 1941.
(h) For monthly breakdown seo tabulations prior to October 8, 1941.
(1) For monthly breakdown see tabulations prior to October 14, 1942.
(j) For monthly breakdown see tabulations prior to September 29, 1943.
(k)
Includes 8 5.5 million apparently representing current and accumulated dollar proceeds of sterling area services and
merchandise exports.
Regraded Unclassi ified
ANALYSIS OF CANADIAN AND AUSTRALIAN ACCOUNTS
Strictly
(In Millions of Dollars)
Week Ended August 9. 1944
Confidential
BANK
OF
CANADA (and Canadian Government)
COLL ONNEALTH BANK OF AUSTRALIA (and Australian Government)
DEBITS
CREDITS
DEBITS
CREDITS
Transfers
Transfers
Transfers from Official
to"
British A/C
Net Incr.
to
Proceeds
liet Incr.
Proceeds
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. (-)
in $Runds(s)
Debits
A/C
Debits
Credits
Sales
Credits
$ Hunds (e)
Debits
A/C
Debits
Credits
Sales
A/C
A/C
Credits
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
har 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)
525.8
0.3
525.5
566.3
198.6
7.7
-
360.0
+ 40.5
107.2
57.4
49.8
112.2
17,2
95.0
- 5,0
Fourth year of war(d)
723.6
723.6
956,8
47.1
170.4
-
-
741.3
235,2
197,0
155.1
41.9
200.4
-
200,4
+ 3.4
1943
47.2
47.2
70.1
10.6
59.5
+ 22.9
16.8
15.0
1,8
20.0
-
20.0
+ 3.2
September
-
-
-
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
1
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
110.5
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
3.2
29,9
.
29.9
- 2.3
+ S.9
April
183.6
-
183.6
96.7
-
I
-
96.7
- 86.9
29.5
27.5
2.0
39-6
-
39.4
MAY
154.2
,
154.2
86.3
-
8.1
-
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
3.4
21.8
-
21.8
- 9,6
-
10.4
20.6
20.6
+ 0.2
July
43.7
43.7
73.2
-
7.3
-
65.9
+ 29.5
20.4
10.0
-
-
August
Week Ended
-
4.2
6.6
-
-
-
6.6
+ 2,4
1.9
-
1.9
0.2
-
0,2
- 1.7
July 19, 1944
4.2
July 26, 1944
16.8
-
16.8
23.1
7.1
-
16.0
+ 6.3
2.1
-
2.1
3.3
-
3.3
+ 1.2
-
A upust 2, 1944
3.6
-
3.6
18.5
-
3.2
-
15.3
+ 14.9
0.3
-
0.3
2.4
-
2.4
+ 2.1
August 9, 1944
7.3(f)
-
7.3
10.8(f)
-
1,1
-
9.7(s)
+ 3.5
1,7
-
1.7
O.T
-
0,7
- 1,0
Average Weekly 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 8, 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) Reflocts c "anges in all dollar holdings payable on demand or maturing in one year.
Fifth year of war (through August 9, 1944)
16.7 million.
(f) Does not reflect transactions in short term U. 5, securities.
(g) Includes $ 0.9 million deposited, by War Supplies, Ltd.
and a B.5 million received from New York abbounts of Canadian Chartered Banks,
Regraded Unclassified
252
PLAIN
August 18, 1944
CIRCULAR, Eighteenth
To Certain American Diplomatic Officers:
The Radio Bulletin of August 17 contains the joint declara-
tion of the British and United States Governments in response to
the offer of the Hungarian Government to permit the emigration
of certain categories of Jews from Hungary. As you have done
with previous press releases on refugee matters, kindly secure
the widest possible distribution for this declaration. The
original offer of the Government of Hungery was made public in
Switzerland by the Intercross on July 18 89 follows:
QUOTE Following steps taken in Budapest by ICRC in Geneva
Hungarian authorities have given the committee official assur-
ances that transportation of Jews beyond Hungarian frontiers
has ceased and that the ICRC are authorized to furnish relief
of Jews who are interned or in forced residence in Hungary.
The commiteee are furthermore empowered to cooperate in the
evacuation of all Jewish children under ten years of age who
are in possession of visas to reception countries and all Jews
in Hungary holding entrance visas to Palestine will receive
permission from the authorities to leave for that country.
UNQUOTE
HULL
(GLW)
Send to AMLEGATION Bern, Switzerland
AMLEGATION
Stockholm, Sweden
AMPOLAD Caserta Italy
AMEMBASSY
Lisbon, Portugal
AMEMBASSY Madrid, Spain
AMEMBASSY
Ankara, Turkey
WRB: GLW: Kc 8/17/44
SE
WE
RE
NOE
Regraded Unclassified
253
August 18, 1944
MEMORANDUM
TO:
Mr. Warren
FROM:
Mr. Pehle
In order that our missions in London, Ankara
and Stockholm may be fully informed regarding the
Hungarian situation, I think that we should repeat
to all three missions as soon as possible cable
No. 5197 of August 11 from McClelland in Bern. The
text of our reply to this cable once it has been
agreed upon should also be communicated at the same
time. You will recall that with my memorandum of
August 17th to Mr. Stettinius, I sent a proposed reply
to McClelland for State Department clearance.
I assume that these three as well as other
missions have received copies of the joint statement
of the British end American Governments concerning the
acceptance of the so-called Horthy offer.
(Signed) J. W. Pehle
Regraded Inclassified
254
A-388
PLAIN
6:35 a.m.
August 18, 1944
American Embassy,
San Jese,
Department's despatch no. 607, July 24, 1944.
Celia Mandelbaum, number seven on the list under
reference should read Sylvia Helena Mandelbaum.
HULL
ae C
SWP:RCE:FAH
8/16/44
WRB
Regraded Unclassified
FROM: Ciudad Trujillo, D.R.
DATE: August 18, 1944
255
Rec'd: August 21, 1944 p.m.
SECRET
The Secretary of State
Washington, D. 0.
4-397, August 19. 1944, 10:30 a.m.
Department's secret instruction no. 21 of August 11,
1944.
I have spoken to Foreign Minister Pena Batlle regard-
ing the possible issue of Dominican documentation to
Buropean refugees. The Minister is studying the letter
sent on August 10 to Ambassador Copello by Mr. Hooker: he
stated that he would confer in the premises with President
Trujillo this week-end, and hoped to be able to give no
his Government's reply "within the next four or five days".
Although the decision will be made by President Tru-
jillo, it was obvious that the Foreign Minister is far from
enthusiastic. While stating that he fully recognises the
humanitarian aspects of the proposal and also emphasising
the role which his Government has already played "in 008-
parison with other governments of the new world" in taking
steps on behalf of European refugees, he cited a number of
difficulties such as the temptation to corruption in the
issue and handling of documents and the problem inherent
in trying to establish controls sufficient to safeguard
this country against the entry of undesirables. He appeared
to be fully aware of the conduct of numerous Latin-American
diplomatic and consular officers in the past few years, and
the notorious visa racket which has flourished side by side
with sincere humanitarian efforts.
Although hitherto Pena Batlle has always referred
favorably to Jewish refugees now here, in recent conversa-
tions he has differentiated between those at the Sosua
colony (my despatch no. 205 of August 8, 1944) and about
500 other Jewish refugees alleged to be in the capital
and vicinity "competing with Dominican enterprises".
Pena Batlle also once more brought up the question
of Spanish refugees (my telegram no. 368 of August 7. 1944
and previous correspondence) remarking, albeit with a
certain amiability, on the cancellation of the Panamanian
visas as having been done at the instance of the American
Government, and complaining that the Governments of other
Caribbean countries and Mexico now are willing to take
"only the good ones, leaving us with the bad ones".
It is clear
Regraded Unclassified
256
Page two. A-397 from Ciudad Trujillo, D.R., dated August 16, 1944.
It is clear therefore that his views on our current
"letters of protection" project are being considered in
relation to the refugee problem as a whole, insofar as the
latter affects the Dominican Republic. It is inevitable
that this should be the case, and I hope therefore that
the foregoing may be useful as background in such further
conversations as may be held with Ambaseador Copello.
In general it has been President Trujillo's policy to
go along with us on all of these matters, but the Foreign
Minister is now apparently asking himself such questions
as, Why doesn't the United States issue letters of protec-
tion; Why is the Dominican Government singled out for the
experiement when it has already done more than most American
Republics on behalf of refugees, et cetera.
Also the Foreign Minister apparently does not clearly
understand that procedure can be adopted respecting appli-
cations for the proposed "letters of protection" and how
they can be delivered to the individuals concerned without
encouraging a reneval of the flagrant abuses of a few years
ago.
I shall report further as soon as the Foreign Minister
has consulted with President Trujillo.
BRIGGS
848
HOB/mg
Regraded Unclassified
257
AIRGRAM
FROM:
Ciudad Trujillo, D.R.
DATED:
August 18, 1944
a
Rec'ds August 23, 1944 é p.m.
UNRESTRICTED
Secretary of State
Washington, D. C.
A-401, August 21, 1944, 10:30 a.m.
Department's circular telegram of August 12,
1944, 8 p.m. regarding refugee children.
Foreign Minister Pena Batlle states that
there will be no objection in principle to in-
cluding children from Hungary and that he will
send me a note to that effect.
BRIGGS
848
EOB:len:eng
Regraded Unclassified
258
KD-731
PLAIN
LONDON
Dated August 18, 1944
Rec'd 11:12 a.m.
Secretary of State
Washington
6668, Eighteenth
London papers this morning carried declaration
identical with that quoted in Embassy's 6609 sixteenth.
WINANT
CSB
Regraded Unclassified
259
MAE-973
PLAIN
London
Dated August 18, 1944
Rec'd 11:59 p.m.
Secretary of State,
Washington.
6710, Eighteenth
t
Embassy will be represented àt informal conference to be held
afternoon of August 21 with representatives Foreign Office and IGC
to discuss means of implementing acceptance of Hungarian offer to release
Jews. Please endeavor have any instructions or comments reach here
by norning that day.
WINANT
HTM
Regraded Unclassified
260
CABLE TO AMEMBASSY LONDON
Please forward the following message to Mr. Joseph Linton,
77 Gr. Russel Street, London, WC1:
QUOTE Yours 28/7 to Goldmann. One Understand that Paraguay
offered to exchange Vittel holders of Paraguayan passports
for German civilians and that no German answer received.
Two Understand German Nationals from Netherlands East Indies
are in Colombo, Ceylon. Three Please inform fully on action
regarding Belgian veteran lists. World Jewish Congress.
A. Leon Kubowitski. UNQUOTE
August 18, 1944
3,50 p.m.
BAkzinsml 8/17/44
Regraded Unclassified
261
CABLE TO AMEMBASSY, LONDON, ENGLAND
With reference to your 17252 of August 2 please inform IGC that
American Minister at Bern was instructed on April 10 to request Swiss
to inform Germans that all Jews holding Latin American documents are
eligible for exchange against Germans in Western hemisphere. Germans
have already included some such persons in exchange groups and pro-
bably will continue to do SO. All such persons are accepted by this
Government in actual exchange. Inclusion of specific names in American
exchange proposals has been deemed pointless by American authorities in
charge of exchange arrangements since neither party selects exchange
groups in accordance with other party's suggestions, but makes its own
selections among all eligibles. Furthermore, in view of menner in which
such documents were issued, information as to identity of persons hold-
ing them and names in which they have been issued is fragmentary.
While eligibility of these persons for exchange in thus known to
Germany, your and IGC's attention is drawn to passage in IGC's com-
munication regarding acceptance by Berlin of list for repatriation of
group to Palestine and regarding lack of confirmation thereof by London.
It is hoped that such confirmation has since been obtained.
For your information, Amlegation Bern is being instructed to pro-
test sharply against the deportations reported by IGC. A special ground
for protest is present by reason of formal assurances given by German
Foreign Office to Swiss Legation Berlin on May 11 to the effect that
beginning that date all persons holding Latin-Americen passports in
civilian internment camps reserved for nationals of American continent
would be treated as American nationals notwithstanding any doubt as
to the validity of their documents. Copy of instruction to Bern is
being repeated to you, for your and IGC's information. Parallel pro-
tests and public statements by British officials would be appreciated.
9:25 a.m.
August 18, 1944
BAkzin:ml 8/16/44
Regraded Unclassified
262
MS-301
PLAIN
LONDON
DATED August 17, 1944
Rec'd 6:30 a.m.
Secretary of State,
Washington.
US URGENT
6625, Seventeenth
FOR PEHLE WAR REFUGEE BOARD FROM DUBOIS
Please acknowledge at once receipt of the two
urgent messages sent to you yesterday.
WINANT
RR
egraded
Unclassified
263
CABLE FROM WAR REFUGEE BOARD TO CHAPIN FOR SAXON IN ALGIERS
Please refer to your 2583 of August 4 requesting instructions
whether you are authorized to accept, chargeable to the War Refugee
Board, messages from private relief organizations for transmission
to the United States and other destinations.
Since the Executive Order establishing the War Refugee Board
authorized cooperation with private relief organizations, our practice
has been and is to make our wire facilities available to them when for
some compelling reason they cannot send their messages through private
cable companies or it is not feasible to do 80, However, the private
relief agencies and not (repeat not) the War Refugee Board are expected
to pay the cable charges for such messages, Accordingly, you are
instructed to follow our practice.
THIS IS WRB CABLE TO ALGIERS NO.
46
August 18, 1944
3:40 p.m.
MSargoy:dh 8/18/44
Regraded Unclassified
264
AIRGRAM TO AMEMBASSY, PANAMA
References made to your 84 of July 14.
Please inform the Foreign Minister of Panama that the
Department and War Refugee Board appreciate the offer of
economic aid in the emergency refugee sheltering program made
by Panamanian note 961 of July 10.
9:30 a.m.
August 18, 1944
BAkzin:ml 8/16/44
Regraded Unclassified
265
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Consulate General, Jerusalem
DATED:
August 18, 1944
NUMBER:
136
CONFIDENTIAL
Please deliver the following message to Heshel Frumkin-
Goldie Myerson, 115 Allenby, Tel-Aviv, Palestine, from Israel
Mereminski:
"Confidential yours July 29 discussed fully WRB who submitting
first part your important war information competent authorities.
Suggest your end negotiate directly appropriate Polish groups
simultaneously destruction gaschambers, crematories, etc.
Cable details amount necessary and manner transmission rescue
thousands mentioned LVOV letter. WRB dealing energetically
four Redcross points. No indications here that Hungarian de-
portation not stopped. WRB doing everything possible deal with
Hungarian situation including question children. American Jew-
ish organizations constantly activizing Hungarian Jews here
lines similar your suggestions. Contacting various organizations
concerning Polish Government broadcasts from here appealing
Poles save Jews last moment and provide Polish Embassy here
with lists Poles active rescue work demanded by American public
opinion. Beleive it will work. All concerned interested you
provide me immediately information plans detailed suggestions
for immediately increasing number small boats possible
mobilize Palestine neighboring countries islands etc. All ready
help this most vital urgent problem cable same way without delay"
Regraded Unclassified
266
CABLE TO AMBASSADOR NORWEB AT LISBON AND DEXTER FROM THE DEPARTMENT AND THE WAR
REFUGEE BOARD
(1) In order to take all possible advantage of report set out in 1tem 1
of Department's 2118 of July 28, WRB's 62, this Government is prepared to take
similar action on behalf of relatives of American citizens and resident aliens
entitled under the law to nonquota or preference quota immigration status.
(2) Accordingly, consular officers in Portugal are hereby authorized
to issue immigration visas to any alien who is the husband, wife, parent, or un-
married minor child of an American citizen and on whose behalf nonquota or first
preference status has been established by the approval by the Department of Justice
of a petition filed by such citizen relative, or who is the wife or unmarried minor
child of an alien lawfully admitted into the United States for permanent residence
and as such is entitled to second preference immigration status. The issuance of
visas is subject to the proviso, however, 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 or to be open to reason-
able suspicion because of the circumstances of the case such as those attending the
release of a male applicant of military age, (b) such person is not affirmatively
found by the consul to be inadmissible into the United States under the war, or
(c) the consul does not consider that the case is one which should be recommended
for consideration under the committee procedure.
(3) Consular officers in Switzerland, Sweden, Turkey, and Spain are
similarly authorized and you should advise the Foreign Office that the Swiss
Government is being requested to advise enemy governments, particularly Hungary
and Germany, that American consular officers in neutral countries have been auth-
orized to issue an immigration visa to the alien husband, wife, parent, and un-
married minor child of an American citizen, and the wife and unmarried minor child
of an alien resident of the United States who has been in an area controlled by
Germany or any of Germany's allies, provided that such person presents himself
to an American consular officer and is found not to be disqualified for a visa,
At the same time, please attempt to secure the prompt agreement of the Portugese
Government to advise enemy governments of Portugal's willingness to permit the
entry into Portugal of persons falling within the categories described above.
You may assure Portugese 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 as possible.
Similar requests are being made of Switzerland, Spain, Sweden, and Turkey.
(4) Appropriate private agencies are being advised of the foregoing
so that the filing of petitions by citizens and resident alien relatives of
victims of persecution may be expedited, and names of persons whose status
within the categories above mentioned is established will De cabled to you
from time to time. If any persons within such categories should arrive in
Portugal after Portugal has advised enemy governments in accordance with item
3 above, but prior to any notification to you of the establishment of their
Regraded Unclassified
267
-2-
status, please advise Board promptly of their names and of the names and addresses
of relatives claimed in the United States.
(5) Please keep Department and Board advised of any developments in
this program.
THIS IS WRB LISBON CABLE NO. 78
August 18, 1944
3:35 p.m.
LSLesser:tmh
8/17/44
Regraded Unclassified
268
OEN-865
Lisben
Distribution of
true reading only by
Dated August 18, 1944
special arrangement.
(Secret W)
Rec'd 5:20 p.m.
Secretary of State,
Washington.
2554, August 18, 1944 5 p.m.
THIS IS WRB 157 CN FOR BRAGG UNITARIAN BOSTON FROM
ELIZABETH DEXTER USC 315
Please arrange someone neet Alice Moura and two
daughters sailing August 19 on SS SANTOME for Philadelphia.
Husband Joso Pires Moura seaman United States Navy,
US SATRONE Three c/o Fleet Post Office. In view above
suggest Philadelphia Red Cross Home Service Section for meeting.
They are to stay with friends Jose Redrigues 195
Jefferson Street, Newark, N.J.. Notify them also of
Moura family's coming. Mouras speak only Portuguese.
NORWEB
BB
Regraded
Unclassified
269
CABLE TO OFFICER IN CHARGE, AMEMBASSY, MADRID FROM THE DEPARTMENT AND THE WAR
REFUGEE BOARD
(1) In order to take all possible advantage of report set out in item 1
of Department's 2126 of July 28, this Government is prepared to take similar action
on behalf of relatives of American citizens and resident aliens entitled under the
law to nonquota or preference quota immigration status.
(2) Accordingly, consular officers in Spain are hereby authorized to
issue immigration visas to any alien who is the husband, wife, parent, or un-
married minor child of an American citizen and on whose behalf nonquota or first
preference status has been established by the approval by the Department of Justice
of a petition filed by such citizen relative, or who is the wife or unmarried minor
child of an alien lawfully admitted into the United States for permanent residence
and as such is entitled to second preference immigration status. The issuance of
visas is subject to the proviso, however, 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 or to be open to reason
able suspicion because of the circumstances of the case such as those attending
the release of a male applicant of military age, (b) such person is not affirma-
tively found by the consul to be inadmissible into the United States under the
law, or (c) the consul does not consider that the case is one which should be
recommended for consideration under the committee procedure.
(3) Consular officers in Switzerland, Sweden, Portugal, and Turkey
are similarly authorized and you should advise the Foreign Office that the Swiss
Government is being requested to advise enemy governments, particularly Hungary and
Germany, that American consular officers in neutral countries have been authorized
to issue an immigration visa to the alien husband, wife, parent, and unmarried
minor child of an American citizen, and the wife and unmarried minor child of an
alien resident of the United States who has been in an area controlled by Germany
or any of Germany's allies, provided that such person presents himself to an Amer-
ican consular officer and is found not to be disqualified for a visa. At the
same time, please attempt to secure the prompt agreement of the Spanish Government
to advise enemy governments of Spain's willingness to permit the entry into Spain
of persons falling within the categories described above. You may assure Spanish
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 as possible. Similar requests are being made of
Switzerland, Turkey, Sweden, ano Portugal.
(4) Appropriate private agencies are being advised of the foregoing
so that the filing of petitions by citizens and resident alien relatives of
victims of persecution may be expedited, and names of persons whose status
within the categories above mentioned is established will be cabled to you
from time to time. If any persons within such categories should arrive in Spain
after Spain has advised enemy governments in accordance with item 3 above, but
Regraded Unclassified
270
-2-
prior to any notification to you of the establishment of their status, please ad-
vise Board promptly of their names and of the names and addresses of relatives
claimed in the United States.
(5) Please keep Department and Board advised of any developments in
this program.
August 18, 1944
3:35 p.m.
LSLesser:tnh
8/17/44
Regraded Unclassified
271
FG
SECRET "N"
Distribution of
true reading only by
August 18, 1944
special arrangement.
7 p.m.
(SECRET W )
AMEMBASSY,
MADRID
2294
Please refer to the Department's No. 207 January 25 in regard to the
establishment of the War Refugee Board. The Executive Director of the Board,
John W. Pehlo, has informed the Department that in conformity with the President's
Order of January 22, the Board proposes to appoint Mr. James H. Mann, represen-
tative of the War Refugee Board in Madrid, as the Special Representative of the
Board with the designation by the Department as Special Attache to the Embassy
on war refugee matters. The President's Order provides that the State Department
shalllappoint such Special Attaches on the recommendation of the Board, that they
shall have diplomatic status, and that their duties and responsibilities shall be
defined by the Board in consultation with the State Department.
It is assumed that there will be no objection, although you may in your
discretion approach the Spanish authorities informally if you consider it necessary
or advisable to do SO, You are requested to confirm by telegram Mann's designation,
or to advise us promptly if there is any reason why the designation should not be
effective at once.
You should advise Mann that it
(a) He is charged with the duty and responsibility of carrying out
the Board's policies and programs in Spain;
(b) He is responsible to the Ambassador and should discuss his
activities and problems with him regularly and fully;
(c) The Embassy will provide him with the necessary communications
facilities in carrying on his official duties;
(d) He shall extend all possible assistance to the Ambassador in
carrying out the instructions contained in the Department's reference telegram;
(e) He shall work with and give all possible assistance to public
and private agencies operating in Spain in this field regardless of -whether such
organizations are American, foreign or international;
(f) He shall develop and assist in the development of programs
and implementation of measures for the rescue, transportation, maintenance and
relief of refugees;
(g) He shall forward to the Board recommendations and frequent
reports on progress of work and difficulties encountered;
(h) In so far as the Trading with the enemy Act is concerned, the
Secretary of the Treasury has vested in the War Refugee Board and its represen-
tatives in the field full authority to communicate with enemy territory to carry
out the purposes of the Order. The Secretary of the Treasury has also delegated
Regraded Unclassified
272
-2- # 2294, August 18, 7 p.m., to Madrid.
to the War Refugee Board and its representatives the power to authorize any
public or private agenceis, who may be subject to the provisions of our Trading
with the enemy Act, to communicate with enemy territory for the purpose of carry-
ing out the Order. Mann is authorized to act accordingly.
After receipt of confirmation of Mann's designation further detailed
instructions will follow from time to time.
In anticipation of your agreement to the foregoing appointment as indicated
in your recent conversation with Assistant Secretary Shaw, Mr. Mann is preparing
to depart for Madrid as soon as travel arrangements can be made.
HULL
(GLW)
WRB:GLW:KG
S/CR
WE
A-S
8/17/44
Regraded Unclassified
273
MAE-726
Stockholm
Distribution of true
reading only by special
Dated
August 18, 1944
arrangement (SECRET w)
Rec'd
10:42 a.m., 25th
Secretary of State,
Washington.
3153, August 18, 3 p.m.
THIS IS OUR NUMBER 73 FOR WRB
Rumanian Government has now replied to overtures
reported in our number 62 for WRB (Legation's 2920 of
August 3, 3 p.m.) and affirms that it is receptive to
these proposals of facilitating evacuation of Jews from
Rumania either through making certain vessels in
Rumania available or the Bessarabia and Transylvania.
As a preliminary, however, they request written guar-
antees as to expenses and information as to who will
be the guaranteeing party. Pursuant to your instruc-
tions, local Rumanian Minister is being advised by
Swedish Section of World Jewish Congress that it has
in the meantime received information that active dis-
cussions are being held in Ankara regarding these trans-
protation problems and that it appears best that entire
negotiations be carried out from there.
Rumanian Government also passed along the
following information.
That approximately 1000 Rumanian Jews were evacu-
ated in small vessels to Palestine during April and
May.
B. That approximately 8000 Hungarian Jews were ex-
pected at Constansa this month from which point they
would be evacuated to Turkey on the SS SMYRNA.
C. THat Rumanian decree ordering Hungarian Jews
to be shot at Rumanian border was simply to prevent
mass flight which in faot would greatly endanger their
lives. Actually it is stated border guards have been
instructed privately to shoot no one and not a single
Jew has been shot fleeing across the border.
Rumanian Government has been assisting Jews in
Hungary with Rumanian passports and has taken special
measurese to got them into Rumania.
JOHNSON
WTD
Regraded Unclassified
274
CABLE TO MINISTER JOHNSON AT STOCKHOLM FOR OLSEN
PERSONAL FROM PEHLE
I regret sincerely the tragic news conveyed in your 3046
of August 11, No. 70 to WRB. I hope and trust that the report re-
ceived by you proves to have been erroneous, and that Vokietaitis
will be rescued. I want also to take this occasion to congratu-
late you on the imaginative and effective work you are doing despite
the most forbidding difficulties. We all appreciate keenly the in-
itiative and ingenuity that you have displayed, as well as the tire-
less effort to which your accomplishments testify.
THIS IS WRB STOCKHOLM CABLE NO. 76.
11:45 a.m.
August 17, 1944
LSLesser:tmh
8-16-44
Regraded
Unclassified
275
CABLE TO MINISTER JOHNSON AT STOCKHOLM AND OLSEN FROM THE Dept. and the War
Refugee Board.
(1) Please express Department's and Board's appreciation to Foreign
Office for action reported in your 3074 of August 12, No. 71 to WRB. In order
to take all possible advantage of report set out in item 1 of Department's 1501
of July 28, WRB's 58, this Government is prepared to take similar action on be-
half of relatives of American citizens and resident aliens entitled under the
law to monquota or preference quota immigration status.
(2) Accordingly, consular officers in Sweden are hereby authorized
to issue immigration visas to any alien who is the husband, wife, parent, or
unmarried minor child of an American citizen and on whose behalf nonquote or
first preference status has been established by the approval by the Department
of Justice of e petition filed by such citizen relative, or who is the wife or
unmarried minor child or an alien lawfully admitted into the United States for
permanent resident and as such is entitled to second preference immigration
status. The issuance of visas is subject to the proviso, however, that (a)
such person other than a child under 100 years of age is found upon telegraphic
reference to the Department for security check not to be the subject of an ad-
verse report or to be open to reasonable suspicion because of the circumstances
of the case such as those attending the release of a male applicant of military
age, (b) such person is not affirmatively found by the consul to be inadmissible
into the United States under the law, or (c) the consul does not consider that
the case is one which should be recommended for consideration under the committee
procedure.
(3) Consular officers in Switzerland, Turkey, Portugal, and Spain are
similarly authorized and you should advise the Foreign Office that the Swi ss
Government is being requested to advise enemy governments, particularly Hungary
and Germany, that American consular officers in neutral countries have been
authorized to issue an immigration visa to the alien husband, wife, perent,
and unmarried minor child or an American citizen, and the wife and unmarried
minor child of an alien regident of the United States who has been in an area
controlled by Germany or any of Germany's allies, provided that such person
presents himself to an American consular officer and is found not to be dis-
qualified for a visa. At the same time, please attempt to secure the prompt
agreement of the Swedish Government to advise enemy governments of Sweden's
willingness to permit the entry into Sweden or persons falling within the
categories described above. You may assure Swedish officials that any such
persons 90 admitted will be adequately maintained and that any who may be
found not (repeat not) to be qualified for the issuance of B visa will be
evacuated as promptly AS possible. Similar requests are being made of Swit-
serland, Spain, Turkey, and Portugal.
(4) Appropriate private agencies are being advised of the foregoing
so that the filing of petitions by citizen and resident alien relatives of
victime of persecution may be expedited, and names of persons whose status
within the categories above mentioned is established will be cabled to you
Regraded Unclassified
276
-2-
from time to time. If any persons within such categories should arrive in Sweden
after Sweden has advised enemy governments in accordance with item 3 above, but
prior to any notification to you of the establishment of their status, please ad-
vise Board promptly of their names and of the names and addresses of relatives
claimed in the United States.
(5) Please keep Department and Board advised of any developments in
this program.
THIS IS WRB STOCKHOLM CABLE NO. 77
August 18, 1944
3:40 p.m.
LSLesser:tmh 8-17-44
Regraded Unclassified
277
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Stockholm
TO:
Secretary of State, Washington
DATED
August 18, 1944
NUMBER: 3166
SECRET
From a confidential source I was informed this afternoon
that recently he had seen a personal friend, whom he character-
ized as entirely reliable, a Swede connected with the Swedish
Legation in Budapest who had been here on a visit. This friend
told him that with his own eyes he had seen the following.
Approximately 20,000 Hungarian Jews, children, men and women,
had been concentrated in the open air for 4 or 5 days with no-
thing even to sit on except the ground. Then they had been herded
into boxcars 80 persons per car, the car then nailed up and
sent off to foreign destinations. The people are packed in the
cars like sardines with no possibility of sitting or even moving.
Many must have been dead on arrival. The friend was specifically
asked by this source if the Germans were instrumental in this
operation and he was assured by his friend that the people hand-
ling this affair were not Germans but Hungarian Gendarmes.
This report bears out others coming to the Legation from
different sources that in the main the Hungarian Police have
themselves been the instrument for arresting and deporting Jews
from Hungary under conditions which are tragically cruel.
JOHNSON
Regraded Unclassified
278
CABLE TO MINISTER HARRISON AND McClelland, Bern, Switzerland
Reference in made to your 4604 of July 19 and 5040 of August 5.
1. In addition to taking action requested in Department's 2715 of August 7,
please express to the Foreign Office the appreciation of this Government for the
information contained in your 4604 and 5040. In order that the Swiss Government
may be fully advised as to the attitude of this Government on this subject, you
may make available to appropriate officials of the Foreign Office the text of the
reply given by this Government on August 11 to Intercrose in accordance with De-
partment's 2657 of August 2 and 2715 of August 7.
Please request the Swise Foreign Office to inform Hungarian authorities that
although this Government has taken note of the communication reported in your 5040,
it does not accept the reasoning therein contained and reserves the right to re-
turn at a later date to the purported facts therein related. Hungarian authorities
should further be informed that the limited assurances contained in such communi-
cation serve only to prompt e reiteration of this Governments' warning that all
those who share the responsibility for the persecution of Jews and other minori-
ties will be brought to justice. Hungarian authorities should also be informed
that it is this Government's strong view that the deportation of any category
of Jews comes within the foregoing and that permission freely to emigrate and
Red Cross supervision of treatment and living conditions must as a minimum be
extended to all categories of Jews.
2. A wide discrepancy is noted to exist between various communications and
reports regarding Hungarian Government's offer relating to treatment of Jewn.
For obvious reasons, this Government bases its position on version communicated
through Swise Foreign Office and contained in your 4604, and proposes to continue
to do 80. Nevertheless, it is anxious to ascertain the precise nature of the
Hungarian offer and attitude. Please, therefore, without departing from the
above stated position of this Government, make discreet and informal inquiries
from such sources as are available to you concerning following principal uncer-
tainties:
Have deportations been definitely stopped for all categories or
only suspended, and if 80, for how long and for what categories?
To what extent will Jews in Hungary be permitted and in fact
enabled to procure food and other necessities through ordinary,
commercial channels and aside from Intercross action?
To what extent is it possible to expect that stoupage of de-
portations and other forms of actual danger to life would continue
even in the absence of actual sizeable emigration of Jews from Hun-
gary during hostilities?
To what extent is emigration to countries other than Palestine
permitted to Jews over ten years of age?
Could emigration
279
-2+
Could emigration be conducted in such a way 89 to prevent break-
ing up of families, with children under ten separated from perents?
To what extent, in view of internal situation in Hungary, 1e
it possible to count on Hungarian promises being made effective and
continuing up to the termination of hostilities?
Please advise Department and Board as soon as possible of answers to any of
above questions.
3. In the light of military and political situation, it appears here that
main emphasis should be placed now on inducing appropriate Hungarian circles to
maintain and strengthen the newly reported relaxation of Jewish regime in Hun-
gary and to apply such relexation to all categories of Jews in Hungary. Pre-
venting deportations and assuring tolerable living conditions for all Jews in
Hungary, if feasible, seems more important than assistance in clandestine escape
of individuals and groups. Please advise of any information and developments
on this point.
4. With reference to 230 from Amembassy London to you, the broad program
envisaged above and in Department's 2657 might be jeopardized by limited scope
of approach suggested by said 230 from London. Therefore, it is not (repeat
not) thought advisable that you limit any of your demarches to children under
ten and the supply problem which are the only items dealt with in 230 from
London. But you are authorized, of course, to give the assurance concerning
availability of supplies for Hungarian refugees through blockade in line with
230 from London.
Repeat to Amembassy London.
THIS IS WRB BERN CABLE NO. 129
9:30 a.m.
August 18, 1944
BAkzin:ml 8/16/44
280
CABLE TO MINISTER HARRISON AND McCLELLAND, BERN, SWITZERLAND
1. Reference is made to your 5040 of August 5 section 3 near end.
The following 18 the substance of similar information contained
in note of Hungarien Legation, Stockholm, to Swedish Foreign Office: QUOTE
it was further ordered that future deportees for labor service will have
right of supervision by Hungarian Red Cross representatives in order to
avoid further charges of brutality. UNQUOTE
2. In view of issue involved, i.e. possible extermination of 400,000
Jews already said to have been deported, please suggest to Intercross the
urgency of contacting Hungarian authorities end Hungerien Red Cross over
all camps to which Jews from Hungary have been deported in the past as
well.
3. Please request Swiss Foreign Office to transmit to appropriate
Hungarian officials a message in the following vein: QUOTE With further
reference to Hungarian communication (referred to in your 5040 of August
5), the Government of the United States notes the explanation contained
in said communication regarding Jews deported from Hungary to the effect
that they have been INNERQUOTE placed at disposal of German Government
as workers as was case for years for tens of thousands of workers of
Hungerian nationality and Christian faith. KND OF INNERQUOTE
In view of the policy of the German Government with regard to Jews,
which, the U.S. Government assumes is well-known to Hungarien Government,
the Government of the United States would appreciate 8. statement of such
measures which have been taken and are being taken by Hungarian authorities
to insure humane treatment of Jews placed at Germany's disposal and to
safeguard them against stervation and other forms of persecution.
The Hungarian authorities will readily perceive that unless such
measures are taken with respect to all Jews INNERQUOTE placed at disposal of
German Government END OF INNERQUOTE the explanation offered would appear
to be at utter variance with the facts and any cases of abuse will be im-
puted to those Hungarien authorities responsible for placing such Jews
at Germany's disposal.
Prompt response to the inquiry herein made is being awaited by the
Government of the United States with extraordinary interest. UNQUOTE You
may, of course, in transmitting the foregoing to Swies Foreign Office
adjust language in your discretion.
THIS IS WRB CABLE TO BERN NO. 130
9:30 a.m.
August 18, 1944
BAkzin:ml 8/17/44
Regraded Unclassified
281
JABLE TO MINISTER HARRISON AT BERN AND McCLELLAND FROM THE DEPARTMENT AND THE
WAR REFUGEE BOARD
(1) Reference your 4983 of August 3, Section 2. It is not (repeat
not) the policy of this Government to deal in specific numbers. You may in
your discretion, however, authorize the Swies Foreign Office to reply to in-
quiry of German Legation, Budapest, by referring to the position of this Govern-
ment as indicated by items 2 end 3 of Department's 2605 of July 28, WRB's 94,
Department's
of
WRB's 122, and Department's 2657 of August 2
and item 3 below.
(2) Notwithstanding recent developments as indicated in your 5197
of August 11, this Government intends to pursue further the reported offers
of Bungarian authorities as typified by your 4604 of July 19.
(3) Accordingly, please request appropriate officials of the Swiss
Government to advise enemy governments, particularly Germany and Hungary, that
American consular officers in neutral countries have been authorized to issue
an immigration visa to the alien husband, wife, parent, and unmarried minor
child of an American citizen, and the wife and unmarried minor child of an
alien resident of the United States who has been in an area controlled by Ger-
many or any of Germany's allies, provided that such person presents himself
to an American consular officer and if sound not to be disqualified for a
visa. At the same time, please attempt to secure the prompt agreement of
the Swise Government to advise enemy governments of Switzerland's willingness
to permit the entry into Switzerland of persons falling within the categories
described above. You may assure Swiss officials that any such persons 80 ad-
mitted will be adequately maintained and that any who may be found not (repeat
not) to be qu lified for the issuance of a visa will be evacuated as promptly
as possible. Similar requests are being made of Sweden, Spein, Turkey, and
Portugal.
(4) Consular officers in Switzerland are hereby authorized to issue
immigration visas to any alien who is the husband, wife, parent, or unmarried
minor child of an American citizen and on whose behalf nonquota or first
preference status has been established by the approval by the Department of
Justice of a petition filed by such citizen relative, or who in the wife or
unmarried minor child of an alien lawfully admitted into the United States
for permanent residence and as such in entitled to second preference immigra-
tion status. The issuance of visas 1s subject to the proviso, however, that
(a) such person other than a child under 16 years of age is found upon tele-
graphic reference to the Department for security check not to be the subject
of an adverse report or to be open to reasonable suspicion because of the cir-
cumstances of the case such 85 those attending the release of a male applicant
of military age, (b) such person is not affirmatively found by the consul to
be inadmissible into the United States under the law, or (c) the consul does
not consider that the case is one which should be recommended for considera-
tion under the committee procedure.
282
-2-
Appropriate private agencies are being advised of the foregoing so
that the filing of petitions by citizen and resident alien relatives of victims
of persecution may be expedited, and names of persons whose status within the
categories mentioned above in established will be cabled to you from time to
time. If any persons within such categories should arrive in Switzerland after
Swiss have advised enemy governments in accordance with item 3 above, but prior
to any notification to you of the establishment of their status, please advise
Board promptly of their names and of the names and addresses of relatives claimed
in the United States.
(5) Please keep Department and Bard advised of any developments in
this program. Reference your 5042 of August 5 and your 5248 of August 12.
Please express to M. Pilet Golaz the appreciation of Department and Board.
THIS IS WRB BERN CABLE NO. 133.
August 18, 1944
3:50 p.m.
A$Lesser:tmh 8/17/44
Regraded Unclassified
283
CABLE TO MINISTER HARRISON AND McCLELLAND, BERN, SWITZERLAND
Please transmit the following message to Dr. Gerhard
Riegner, 37 Quai Wilson, Geneva:
QUOTE Approached by Belgian Legation, ICRC stated its
inability to again ask Germans for authorization to visit
Jewish camps in Belgium. ICRC fears that a new request would
endanger sending foodstuffs these camps.
It is our conviction that by stressing repeatedly the
right interned Jews the treated civilian internees by analogy
Geneva Convention, the Red Cross could only improve their
situation. Energetic action Red Cross Hungarian Jews proves
authority this Committee could still achieve much, especially
at this stage of the war. Besides, wonder whether foodstuffs
really reach Jewish internees Belgian camps. Please intervene,
wire. World Jewish Congress. A. Leon Kubowitzki. UNQUOTE
THIS IS WRB CABLE TO BERN NO. 131
9:30 a.m.
August 18, 1944
BAkzin:ml 8/16/44
Regraded Unclassified
284
CABLE TO MINISTER HARRISON, BERN, FOR MCCLELLAND FROM WAR REFUGEE BOARD.
Please deliver the following message to Mrs. Fanny Hrsch, Comite
Refugies Intellectuels, 7 Rue Gautier, Geneva, from Fred S. Weissman of
Selfhelp of Endgres from Central Europe, Inc.:
"Your message of July 28th reports credit of 21 (?) Swiss
francs. This is not understandable, We transmitted four
times $3,000, on March 8, April 13, May 1, and July 10, and
$5,000 on June 14. Transferring another $3,000 today. Hoping
that your work is continuing. Enlist cooperation of Pierre Levi
Legrand-Schwarz, Hotel Russie, Geneva and Leopold Ettlinger, c/o
Schaub, Pestalozzistr. 35, Zurich. Expecting further reports."
THIS IS BERN CABLE NO. 132
12:10 p.m.
August 18, 1944
RDrury 8/18/44
Regraded Unclassified
285
FG
DEPARTMENT
PLAIN
August 18, 1944
AMLEGATION,
BERN.
2843, Eighteenth
Your despatch no. 8466, June 12, 1944.
Celia Mandelbaum, number 125 on the list under
reference should read Sylvia Helena Mandelbaum.
HULL
(AEC)
SWP:RCE:FAH S/CR
8/16/44
WRB
Regraded Unclassified
286
E00-15
Ankara
Distribution of true
reading only by special
Dated August 18, 1944
arrangement. (SECRET W)
Rec'd 6:45 a.m. 19th
Secretary of State,
Washington.
1514, August 18, 3 p.m.
Prior to the receipt of Department's 685, August 7
WRB 94 had already taken up with the Turk Ministry of
Foreign Affairs as reported in my 1430, August 5 the
matter of the issue of Turk transit visas to persons in
Hungary holding Palestinian certificates or American
immigration visas issued on or after July 1, 1941. The
Secretary General assured me that his Government would
be glad to take the action requested at once and sub-
sequently the Embassy was informed that instructions
had been issued to the Turk Consul in Budapest to issue
transit visas on application to any number of Jews who
applied for them provided they held one of the following
documents: (one) an American immigration visa issued
on or after July 1, 1941; (two) a letter from the Jew-
ish Agency in Istanbul certifying that the holders has
been granted a Palectinian immigration certificate;
(three) a certificate issued by Kraus the Jewish Agency
representative in Budapest to the effect that the bearer
is a Jew; (four) an appropriate certificate issued by
the Swiss Legation or an endorsement on a child's pass-
port under the "five thousand" scheme. At the same time
Turk Consuls at Burgas and Constanza were authorized to
grant between them up to 400 visas every ten days to
persons bearing one of the documents mentioned above.
I have taken no action on London's 46 of July 29.
After consultation with my British colleague I informed
London that we were agreed that no action should be
taken pending further instructions in view of the fact
that the Swedish Minister had informed us that the
Swedish Government had announced that it was prepared
to receive in Sweden Jewish children from Hungary. I
stated that the British Ambassador was reporting this
decision to London in response to instructions which he
had received from the Foreign Office. I further in-
formed our Embassy in London that the Turk Government
had already agreed to issue instructions to their
representatives in Hungary authorizing them to issue
transit visas to all refugees in the possession of
Palestinian certificates or American immigration visas
issued on or after July 1, 1941.
KELLEY
CSB
Regraded Unclassified
287
LL-261
Ankara
Distribution of
true reading only by
Dated August 18, 1944
special arrangement.
(SECRET w)
Rec'd 5:52 p.m., 19th.
Secretary of State,
Washington.
1515, August 18, 4 p.m.
FOR PEHLE WRB FROM HIRSCHMANN.
Ankara's 134
In view of the opportunities that appear to be
developing to rescue and ameliorate the condition of the
Jewish population in Bulgaria we are of the opinion
that every available resource should be utilized to
achieve that end. In view of the above, it would be
helpful in my opinion if Mr. Seckel who has had wide
experience in Bulgarian matters and has wide acquaintance
with Bulgarian personalities whose aid would be helpful
could proceed to Istanbul to assist us in these efforts.
If you agree I should appreciate your making the
necessary arrangements for Seckel to procede to Turkey,
provided that he can travel as an American citizen and
that he can arrive here without delay.
A very recent arrival from the States who knows Seckel
confirms this view.
KELLEY
WFS
WMB
Regraded Unclassified
288
E0C-6
Ankara
Distribution of
Dated August 18, 1944
true reading only by
Rec'd 3:47 a.m. 19th
special arrangement
(SECRET w)
Secretary of State,
Washington.
1516, August 18, 5 p.m.
FOR PEHLE FROM HIRSCHMANN WRB (Ankara No. 135)
Bagrianoff in his speech to Parliament on August 17,
referred to the Jewish question stating that "the
Jewish question must be liquidated and that this can be
achieved without causing new and useless conflicts and
sufferings either to the Bulgarian people or to its com-
rades." It is reported here that the abrogation of
the anti-Jewish laws will be recommended by Bagrianoff
and that a measure to that effect will be introduced
in Parliament in the course of the next few days.
It is strongly urged that the WRB without delay
issue propaganda and take appropriate measures designed
to encourage the Bulgarian Government to take the de-
sired steps and to induce it to take inmediate action.
Bagrianoff is eager to secure a favorable reaction
in and the good will of the United States. It is urgent
that this opportunity be exploited to the utmost.
It 18 also suggested that en appropriate message
(Eagrianoff))
from the Board to me to be read to Balabanoff or
Simond would be especially helpful at this moment.
KELLEY
DU
WFS
Regraded Unclassified
289
CABLE TO OFFICER IN CHARGE, AMEMBASSY, ANKARA, AND HIRSCHMANN, FROM THE DEPARTMENT
AND THE WAR REFUGEE BOARD
(1) Please express Department's and Board's appreciation to the Secre-
tary General of the Ministry of Foreign Affairs for attitude reported in your 1430
of August 5. In order to take all possible advantage of report set out in item 1
of Department's 665 of July 28, WRB's 83, this Government is prepared to take
similar action ontehalf of relatives of American citizens and resident aliens
entitled under the law to nonquota or preference quota immigration status.
(2) Accordingly, consular officers in Turkey are hereby authorized
to issue immigration visas to any alien who is the husband, wife, parent, or
unmarried minor child of an American citizen and on whose behalf nonquota or
first preference status has been established by the approval by the Department
of Justice of a petition filed by such citizen relative, or who is the wife or
unmarried minor child of an alien lawfully admitted into the United States for
permanent residence and as such 18 entitled to second preference immigration
status. The issuance of visas is subject to the proviso, however, 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 ad-
verse report or to be open to reasonable suspicion because of the circumstances
of the case such as those attending the release of a male applicant of military
age, (b) such person is not affirmatively found by the consul to be inadmissible
into the United States under the law, or (c) the consul does not consider that
the case is one which should be recommended for consideration under the committee
procedure.
(3) Consular officers in Switzerland, Sweden, Portugal, and Spain are
similarly authorized and you should advise the Foreign Office that the Swiss
Government is being requested to advise enemy governments, particularly Hungary
and Germany, that American consular officers in neutral countries have been auth-
orized to issue an immigration visa to the alien husband, wife, parent, and un-
married minor child of an American citizen, and the wife and unmarried minor child
of an alien resident of the United States who has been in an era controlled by
Germany or any of Germany's allies, provided that such person presents himself
to an American consular officer and to found not to be disqualified for a visa.
At the same time, please attempt to secure the prompt agreement of the Turkish
Government to advise enemy governments of Turkey's willingness to permit the
entry into Turkey of persons filling within the categories described above.
You may assure Turkish 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 as possible.
Similar requests are being made of Switzerland, Spain, Sweden, and Portugal.
(4) Appropriate private agencies are being advised of the foregoing
so that the filing of petitions by citizens and resident alien relatives of
victims of persecution may be expedited, and names of persons whose status
within the categories above mentioned is established will be cabled to you
Regraded Unclassified
290
-2-
from time to time. If any persons within such categories should arrive in Turkey
after Turkey has advised enemy governments in accordance with item 3 above, but
prior to any notification to you of the establishment of their status, please ad-
vise Board promptly of their names and of the names and addresses of relatives
claimed in the United States.
(5) Please keep Department and Board advised of any developments in
this program.
THIS IS WRB ANKARA CABLE NO. 102
August 18, 1944
3:40 p.m.
LSIesser:tmh 8-17-44
Regraded Unclassified
291
Caracas, August 18, 1944
COMMIDENTIAL
NO. 6374
Subject: Venezuela agrees to admit Jewish
refugees from Hungary.
The Honorable
The Secretary of State,
Washington, D.C.
Sir:
I have the honor to report that I was today
informed by Mr. Albert J. Feinquinos, of the Venesuelan
Jewish Association, that following the receipt on
August 12, 1944 of a cable from the HIAS-ICA Emigration
insociation, 396 Fourth Avenue, New York City, stating
that the Hungerian Government is prepared to permit the
departure of all Jonu able to obtain visas for any other
country, he and feur associates took up with President
Medina the possibility of entrance into Venezuela.
President Medina was asked to allow entrance visas into
Venesuela for (a) children under ten years of age and
(b) adults under temporary visas for the war's duration
to be quartered in free camps similar to those in the
United States, England and Canada.
Mr. Feiquines informed no that as a result of the
discussions which the group of five including himself had
with President Medina, the Venesuelan Government yester-
day sent cabled instructions to its Legation at Lisben
authorizing it to grant visas to Jewish refugees who
apply, regardless of age and without restrictions.
Respectfully yours,
Joseph Flack
Charge d'Affaires ad interim
JF:Jr
COPY NO
292
NOT TO BE He TR,NSMITTED
SECRET
OPTEL No. 269
Information received up to 10 A.M. 18th August 1944,
1. NAVAL
Attacks by human toppedoes tool place yesterday morning off
British sector NORMANDY BEACHES. About 18 accounted for including
nine destroyed by aircraft. One 5,000 ton ship already aground
wes hit and one A.A. landing craft was sunk.
Southern France Bombardments of enemy concentrations north
of CAP NEGRE by B. British Cruiser and a
U.S. Cruiser, took place on 15th. The British Cruiser and a U.S.
Destroyer also bombarded north side of PORT CROS island,
2. MILITARY
Polish armour thrusting southeastwards beyond TRUN have
joined U.S. units and thus cut off German forces in the Salient.
Pressure has been meintained against all sides of the area aurrounded
In the West a British armoured formation has driven 7 miles into the
German positions while U.S. forces have made successful attacks from
the south.
Southern France Only slight opposition encountered on the
beaches and in coastal area immediately behind; considerable
progress made. U.S. troops of the three divisions which landed
between AGAY and CAVALLIRE have reached THEQULE on the right, have
made contact with the airborne troops north of LE MUY and have also
made contact with French Commando troops which landed at CAP NEGRE
and are now within one mile of PIERREFELI pushing north and west
from the assault area forward elements have been reported at
DRAGUIGNAN LORRUES and LE LUC. French troops began unloading on
the beaches on 16th. Prisoners to midnight 16th/17th 2,500.
Russia Russians reached East Prussian frontier at point
40 miles W.S.". KOVNO: they also repulsed German
attacks east of PRAGA.
3. AIR
Western Front 16th/17th. 1,371 nons STETTIN, 900 KIEL,
and 527 nea mines laid.
17th, 54 Helifaxes dropped 265 tone on shipping at BREST and all
returned sefely 486 eiroroft at*acked trunsport N.S. FRANCE and
BELGIUM destroying 309 units rolling stock 28 locumotives, 21 oil
tanker and three bridges. 299 bondors ettacked bridges over River
RISLY dropp! 470-tous- Fighter bombers destroyed three headquarters
buildings North et INCLEIX, 189 fighters destroyed 59 motor
vehicles in the battle area.
17th/18th. 37 Mosquitços MANNHEIN, 206 aircraft other
taskes. All returned safely.
Germany Liberators dropped 190 tons en B. hydrogen plant
near with good renults; two
bombers, one fighter missing.
Italy And Southern France 16th. 138 medium and light
honbers with 711 fighters
attacked communications eto; one bomber, on fighter missing.
Sumania 17th. 288 escorted Liberators dropped 501 tona
on three oil refineries PLOESTI. Enemy casualties
2:1:0 ours 17 bombers, one fighter missing.
German Activity During 24 hours ending 6 A.M. 18th,
116 flying bomba plotted.
Regraded Unclassified