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Volume 767, August 28 – August 31, 1944
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Volume 767, August 28 – August 31, 1944
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Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
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DIARY
Book 767
August 28-31, 1944
Regraded Unclassified
- A -
Book Page
Aarons, Lehman C.
See Bulgaria
# France
- B -
Bulgaria
Armistice terms for: Treasury Representative Aarons'
letter explaining conference with Winant - 8/28/44..... 767
31
- D - -
Dewey, Thomas E. (Republican Candidate for President, 1944)
Sullivan-Nunan memorandum regarding possible Dewey
criticism of present revenue law - 8/30/44
119
- F -
Financing, Government
War Savings Bonds: Likert (Department of Agriculture) to
study result of war's end - HMJr-Bell discussion -
8/31/44
169
France
British business and financial men: Treasury Representative
Aarons' letter explaining Winant attitude - 8/28/44
30
- I -
India
See Post-War Planning: Bretton Woods Monetary Conference
- L -
Lend-Lease
United Kingdom: Federal Reserve Bank of New York statement
showing dollar disbursements, week ending August 23, 1944 -
8/31/44
178
Likert, Rensis (Department of Agriculture)
See Financing, Government: War Savings Bonds
- O -
Olsen, Ivar
See War Refugee Board
Regraded Unclassified
- P -
Book Page
Post-War Planning
Bretton Woods Monetary Conference: India reaction
reported by American representative - 8/30/44
767 156
- T -
Taxation
See Dewey, Thomas B. (Republican Candidate for President,
1944)
- W -
War Refugee Board
Olsen, Ivar (Stockholm representative) special reports
from - 8/31/44
183
Regraded Unclassified
1
August 28, 1944
9:31 a.m.
Operator:
Go ahead.
D. W.
Bell:
Good morning.
HMJr:
Hello, Dan.
B:
Are you up yet?
HMJr:
What do you mean, am I up yet?
B:
(Laughs) I thought you were going to rest.and
sleep long hours.
HMJr:-
Well, I have been. I've been sleeping from ten-
thirty to seven, which, for me, is
....
B:
That's long hours, huh?
HMJr:
....
long hours.
B:
That's right.
HMJr:
Plus a nap in the afternoon, so ....
B:
Well, that ought to do you.
HMJr:
....
I've -- but I -- on account of this important
stuff happening at Cabinet, I did want to explain
this thing to the group.
B:
All right.
HMJr:
And, inasmuch as I'm expecting White to carry the
ball
B:
Yeah.
HMJr:
....
would you mind putting him on?
B:
Not at all. He's right here. There's Pehle and
Bob McConnell, Joe O'Connell and Gaston.
HMJr:
All right.
Harry
White:
Hello. Good morning.
Regraded Unclassified
2
- 2 -
HMJr:
Harry.
W:
Good morning.
HMJr:
Good morning. You're not suffering from indigestion
of too much rich food, I hope.
W:
(Laughs) No, I - - no, no. That's quite a swell
place.
HMJr:
Oh, yeah. What -- did you have any fun?
W:
It was very pleasant, and I had a chance to talk
about a lot of Allied things. I came home Saturday
night, because I wanted to spend Sunday at home,
but it was -- it was worthwhile, I think.
HMJr:
Good. Now, Harry, this is sort of hard to explain,
because so much happened, but you remember I saw the
President Friday morning.
W:
Yes, I knew that you were going to.
HMJr:
Let me -- now, let me just review this thing in my
own mind, see? And I did bring up and did leave
with him at that time -- I may be repeating, but
1.t doesn't make any harm -- do any harm -- that
so-called book of the Army, you know.
W:
Yes, the directives. Did you leave -- you left
the big book there?
HMJr:
The big book there with the summary
....
W:
Yes.
HMJr:
....
and I wanted to take it away and the President
just -- well, he had lunch with Stimson, and evi-
dently he discussed it with him. I - I changed my
mind and I - I did take it there, you see, I told
you that I wasn't going to.
W:
Yes.
HMJr:
What is the book called? Something ....
W:
Well, it's the -- it's based on the directive --
it's the - the text of invasion. I don't remember
HMJr:
Handbook, is the word.
Regraded Unclassified
3
- 3 -
W:
Handbook. That's right.
HMJr:
Now, the President brought it to Cabinet.
W:
Huh!
HMJr:
And discussed it there, and said that this is
the kind of thing that they're doing, see?
W:
Yes.
HMJr:
And then he asked me to find some good examples
in the book, and which I didn't have time to, and
he said have the memorandum, but he did bring the
book to Cabinet and he did use it. Then Stimson
evidently had worked on him at lunch to appoint
this committee of Hull, Stimson and myself to
prepare plans once we got into Germany. And Hull,
of course, didn't like it worth a damn. And in
the morning when I had suggested the same thing,
the President said, "Well, Hull doesn't like it --
these kindsof committees". But, when I had lunch
with Stimson, I had made the suggestion for this
committee and asked him whether he wouldn't work
on the President and he evidently did, and my having
made the suggestion, the President did appoint the
committee. I mean, the whole idea was mine. Now,
we've got a committee. And, riding up with Stimson
in the plane, Stimson, quite frankly, has not given
an awful lot of thought to them -- whatever he has,
has been good -- and one of the thoughts he got,
on the plane up, was that we should take all of the
members of the S.S. troops and put them in the same
concentration camps where the Germans have had these
poor Jewish people, you see, and make an exhibit of
them to the whole world. And - but much beyond
that, he just hasn't thought. Now, he said to us
that he was going to be up in the Adirondacks for
a week, and he just didn't know what was going to --
felt kinda badly about it. But, I thought that
after this conversation, I wish that you would call
up Jack McCloy, who Stimson has designated to carry
the ball while he's gone -- hello?
W:
Yeah. We're all listening.
HMJr:
And as I am designating you to carry the ball, plus
the assistance of the people in the room there.
Now, I think that you should immediately call
McCloy and get together with him, and my suggestion
Regraded Unclassified
4
- 4 -
HMJr: (cont'd)
1s that you people should see Hull, with the
idea that everything should be reviewed by
Sunday what is up to date and then make new
suggestions. Now, at - at Cabinet, Hull said,
well, as far as he was concerned, he had
suggested bringing these people before a drum-
head or court martial and so forth and 80 on.
And then he referred to his papers he is study-
ing in State. I said, "Well, Cordell --
I interrupted him
=
--
if you would read
the memorandum of Mr. Pasvolsky of July 30th,
you will see that Mr. Pasvolsky's study and
your feelings are as far apart as the North
and South Pole". And Stimson told me after-
wards that he was awfully glad I said it,
because Hull keeps referring to these things,
which, he says, he doesn't think Hull has ever
read, himself. Hello?
W:
Yeah. We're all listening, yes.
HMJr:
Now, I think the quicker you can get together
with McCloy, the better. And see Hull. Now
here's another thing: I don't know when
Stimson's coming back; I will be back on
the farm this Saturday, but you and McCloy
should arrange for an appointment for the three
of us to meet and to get to the source of the
thing either next Monday or Tuesday. Hello?
W:
I'm listening.
HMJr:
I don't know whether Monday is a Treasury
holiday or not -- a government holiday, is it?
W:
I don't think so.
HMJr:
But either Monday or Tuesday, because we have
only got that week that follows -- next week,
beginning Labor Day Monday -- in order to reach
the President, if you get what I mean.
W:
Yes.
HMJr:
Before he has another important meeting, see?
W:
I see. All right.
HMJr:
Now, wait a minute. You've got this week to do
your preparation, Monday and Tuesday to make a
Regraded Unclassified
5
- 5 -
HMJr: (cont'd)
report to us, and then we've got only the
fol -- the week ending the 10th to get it
to the President. Now the President is
hungry for this stuff, because every time
I tell him anything, or any time I do anything,
he immediately uses it. Like the pamphlet, see?
W:
Yes.
HMJr:
Now, just one second. I made some notes and
I want to, see if I've covered everything.
Now my own thought is, and I told this to
Pehle - I don't know whether you were there -
there must be some of these very able refugees
around that we can bring in and ask for some
ideas.
W:
Well, we'll canvass. There are a lot of them
around.
HMJr:
And -- this thing is 80 much a - a psychological
matter, it's a question of how to handle the
Germans who have been inculcated with this
fanaticism, and it really needs a psychologist.
I don't know whether there's any very famous
German psychologist who would come out.
W:
Well, there must be some.
HMJr:
But if there are any, I really wish you would
telegraph them and bring them down.
W:
All right. We'll get a group down.
HMJr:
Of treating the mind rather than the body, Harry.
W:
Yes.
HMJr:
And, we just don't have people, but there must
be people who have been in Germany who have
come out and have suffered and been tortured,
and who know the German mind.
W:
Well, we'll -- won't spare any expense.
HMJr:
No, and - but, as I say, it's a question of
attacking the German mind, and, also, how to
bring up the next generation of children.
W:
Well, what we might
....
Regraded Unclassified
6
- 6 -
HMJr:
Harry, may I just say this?
W:
Yes.
HMJr:
That I think when it gets down to it, it may be a
question of taking this whole S.S. group, because
you can't keep the concentration camps forever
and deporting them somewhere -- out of Germany
to some other part of the world. Just taking
them bodily. And I wouldn't be afraid to make
the suggestion just as ruthless as it is necessary
to accomplish the act.
W:
All right.
HMJr:
Let somebody else water it down.
W:
All right.
HMJr:
Now, I can't be reached by mail. I've come up
from Malone; I've driven up here, and if it's
important enough, I can come, because this is
the most important thing that I'll ever handle
while I'm in government service.
W:
Yes. Well, I suppose we can "always reach you
by cable.
HMJr:
Hello. I say everything else is - - 1s very
secondary.
W:
Well, I'm sure everybody will put all their
time on that because of the shortness of the
time.
HMJr:
I mean, if it's a question of consultation, don't
hesitate to -- I'll be glad to come to the phone.
W:
Well, we'll probably get in touch with you as soon
as there is a crystallization sufficiently to
indicate
HMJr:
You might
....
W:
.... what - what we had in mind.
HMJr:
....
night, by mail, as to what you've accomplished.
Now Hull is going to be difficult. He doesn't like
this.
Regraded Unclassified
7
- 7 -
W:
Now - if - apparently it's not your thought
to wait until Hull calls this group together.
HMJr:
Oh, he'll never call this group together.
W:
I see.
HMJr:
He wouldn't -- I mean, the President was more
firm about this opposite Hull than I've ever
seen him, and so was Stimson. It was all --
oh, I mean, to give an example, Stimson addresses
Hull as "Mr. Secretary", but he was very -- this
time he was much more firm than I've ever seen
him, and he told me he hated to bring up anything
that had to do with foreign affairs at Cabinet
with Hull.
W:
Yes.
HMJr:
It was very embarrasing to him as former Secretary.
W:
Hull didn't name anybody who was
HMJr:
Not a word!
W:
to carry the ball for him.
HMJr:
No, he simply said that he had all these studies
made and everything was done, and then I - I just
put a pin in it and exploded it.
W:
Yes.
HMJr:
And -- I'm not sure that - that Winant shouldn't
be brought back, and I'll tell you why because
somebody's being very unfair to Winant. I mean,
they're sort of blaming him, and I think it's
Hopkins, you see, that he hasn't done anything
on this European Advisory Council. Well, we know
he couldn't do anything, because he had no instruc-
tions.
W:
Well, when you're suggesting that he ought to be
brought back, are you suggesting that we make that
suggestion to somebody?
HMJr:
Well, if you think well of it. If you think he
could make a contribution.
W:
Well, not if we only have a week. He won't
Regraded Unclassified
8
- 09 -
HMJr:
Well, he could come back in twenty-four hours.
W:
Yeah.
HMJr:
I mean, if you think he could make a contribution.
W:
Well, I think the reason why it might be helpful
to have him around might be: (a) that he might
make a contribution, but what is at least as
important is that if he's in sympathy with whatever
you finally end up with, well, then he's the man
who can do a good deal of the necessary selling in
England.
HMJr:
That's right. And another thing, I - there -
Hopkins, for some reason, is sort of torpedoing
him, and if he's discredited, God knows who will
take his placè. And Hull is inclined to discredit
him. Well, we know he had no instructions.
W:
Well, ah
....
HMJr:
Well, you think
....
W:
Yes, I don't know quite how to suggest -- to whom
to suggest having him back.
HMJr:
Well, think it -- I'm not -- I'm just raising
the question.
W:
Yes.
HMJr:
And the other thing -- the one thing I have
definitely convinced the President, and that was
very hard; too, that unless he moves, this hand-
book goes into effect, you see?
W:
Yes. That's good.
HMJr:
But that I got across.
W:
That's true. Well, I think -- one of the things
I think we've got to do, then, in addition to
what you've suggested to minor order, is - is
to keep Hilldring here, because if that handbook
is going to be revised, it will have to be revised
very quickly
HMJr:
Oh, yes.
Regraded Unclassified
9
- 9 -
W:
....
and there - that's under his jurisdiction.
HMJr:
Yes.
W:
And he was leaving, I think, today for England.
I may be wrong, but I got that impression
....
HMJr:
Well, I think that
....
W:
....
I'll mention that to McCloy.
HMJr:
What?
W:
Shall I mention that to McCloy?
HMJr:
Yeah. And would Bernstein be of any use?
W:
Oh, sure!
HMJr:
What?
W:
Sure he would.
HMJr:
Well, I'd have him come right back.
W:
Should I mention that to McCloy?
HMJr:
Tell him I'd get him a cable to come back at
once.
W:
All right. I'll tell him that you asked it.
HMJr:
Yeah. Because we got most of that stuff from
Bernstein, didn't we?
W:
Well, he gave us the directive, yes.
HMJr:
Yeah.
W:
Yes. Without him I don't think we'd had it.
HMJr:
Well, I wouldn't hesitate -- I mean, anybody
that can be useful -- we've got to move so fast,
and there's been eight or ten months wasted.
W:
All right.
HMJr:
And if -- in order - in order to keep -- not to
make it embarrassing to Bernstein, to bring Holmes
along with him.
Regraded Unclassified
10
- 10 -
W:
All right.
HMJr:
See, then - then the whole thing is here and
then can rewrite the damn thing right here.
W:
Well, I think that's a good suggestion.
HMJr:
I mean, I'd bring Holmes and Bernstein over.
W:
I think that's a good suggestion.
HMJr:
Otherwise, if -- Holmes will get his ....
W:
Yeah. That's right. Yeah.
HMJr:
If we handle Holmes right, he is not difficult
to handle.
W:
No, apparently not, and then I think that would
be able to accomplish the very thing you say --
that if Holmes is here, this handbook is written
under his, I think either wholly or at least partly,
under his jurisdiction. The man above him is
Wickersham, and Wickersham, I think, 1s supposed
to be merely a temporary appointment.
HMJr:
Well, I wouldn't worry about Wickersham, but I
think I would bring back Holmes and Bernstein.
W:
All right. Then I'll - I'll relay that to McCloy.
HMJr:
Of course, if you insist on bringing back Colonel
Foley.
W:
Well - ah - I'll tell you -- well, shall I put it
in a nut shell? Foley is here. The Colonel is
here.
HMJr:
He is?
W:
(Laughs) Yeah. He's come back on some important
business.
HMJr:
Did he use me as an excuse again?
W:
No - I don't -- no, he came back with Secretary
Forrestal -- on the plane with him.
HMJr:
I see.
Regraded Unclassified
11
- 11 -
W:
And ....
HMJr:
Well, it shows his sister has a lot of influence.
W:
No, it shows he's got important business.
HMJr:
Well, I, seriously, I don't want him in on this.
Hear? I was just kidding.
W:
Yeah.
HMJr:
Now, don't - don't bring him in on this, please.
W:
All right.
HMJr:
No. He - I don't - he doesn't - I was just
being ....
W:
I don't think he's in that field -- in that
....
HMJr:
Well, I - I was just being funny.
W:
Yeah.
HMJr:
It's not very funny at that.
W:
Okay. He was here ....
HMJr:
Now, does anybody else want to talk to me?
W:
I'll find out.
(Pause)
Dan says he presumes that we ought to take up
the -- and go ahead with the discussion of using
the - the dollar in Germany. We're push - pushing
that.
HMJr:
Well, that would be part and parcel of the same thing.
W:
Oh, I see, you want to make that part of the
general recommendation.
HMJr:
Oh, yes. Well, the President's weakened a little
bit on it already.
W:
Oh, he has?
HMJr:
He kinda now -- he's got it out of his system, and
now his attitude 1s, well, kinda study the thing.
W:
I see. So, it's - it's still open?
Regraded Unclassified
12
- 12 -
HMJr:
I would say so.
W:
Yes.
HMJr:
But, as I told McCloy, I saw him at the airport,
and I told him -- he was fussing with me then --
I said, "Jack, I told you this morning I was
fishing for much bigger fish, and I caught the
fish, and this thing is very unimportant". And
Stimson said "That's right". "Oh", he said, "It's
terrible. It's terrible". I said, "Now, Jack,
just decide on this thing -- we're after
the bigger thing". Now
....
W:
It isn't terrible, you know, really.
HMJr:
What?
W:
It isn't terrible; it's just a little expensive.
HMJr:
Well, I would study it as part and parcel of the
whole business.
W:
All right.
HMJr:
But I - I don't want -- I mean, if we go up
against the President again and he again says it,
"I'll have to think that over, but just find out
how expensive it is.
W:
We can present him with the -- that and one we
think 1s the best alternative and give him the
pros and cons.
HMJr:
I think we've got to notify the English and the
Russians, though, about this suggestion of the
President. We can't wait a week.
W:
Yes.
HMJr:
Hello?
W:
That was intended.
HMJr:
Pardon?
W:
We intended to do that.
HMJr:
Yeah, I'd go on the theory that this is what the
President wants.
Regraded Unclassified
13
- 13 -
W:
All right.
HMJr:
And we -- and that's what I told McCloy.
W:
All right.
HMJr:
Now - ah - if that's what the President wants,
I want to do it, and if during the week -- the
next two weeks -- we find we can't do it, we
can always tell him. But we can do it if he
insists.
W:
All right. Well, we can ....
HMJr:
I mean, after all, supposing it is a little
expensive, but I - - I accomplished what I wanted
and that's the big thing, and McCloy's fussing
about a little pin prick.
W:
It's -- it's only a matter of expense, but if
you ignore the expense, it will help you achieve
your objective.
HMJr:
That's right.
W:
We can put the pros and cons on and give him
the alternatives.
HMJr:
But I mean, I want to go ahead as though the
President -- that the President told us to do
this and let's try and do it.
W:
All right, sir.
HMJr:
See?
W:
All right. I think we have the picture as you've
given it.
HMJr:
All right. Anything else?
W:
(Talks aside) Just -- Dan was commenting that
McCloy was much opposed to it.
HMJr:
Well, that's unimportant.
W:
All right, sir. Anything else?
HMJr:
No, I mean, after all -- hello?
Regraded Unclassified
14
- 14 -
W:
We're listening.
HMJr:
McCloy can't -- Stimson can't get -- wash their
hands of the fact that if we hadn't gone to
Europe and dug this stuff up, that handbook would
have gone into effect.
W:
Well, yes. I suppose particularly if things
move fast it would have.
HMJr:
Yes.
W:
Yes. Yes, it was the last word, and they had no
....
HMJr:
Well, that seems to be the President's attitude
now.
W:
I see. Did you get the impression that he glanced
at some of the provisions that you had listed in
the memorandum?
HMJr:
Yes. Definitely. He -- well, he read them while
I was there.
W:
Oh, yes.
HMJr:
While I was there, he read them.
W:
I see. There's no way of getting that handbook
back, is there, to your knowledge? It's the only
one we've got and the only one we can get.
HMJr:
Look. I thought that over. It's worth its weight
in gold. We'll let the President have it there
and show it to different visitors that come in.
W:
I see.
HMJr:
And when Bernstein comes, send him a message to
bring a couple more with him.
W:
All right, sir.
HMJr:
But what the President will do -- I know him --
everybody comes in, he'll show them this.
W:
All right.
HMJr:
And let Bernstein bring over a couple more.
Regraded Unclassified
15
- 15 -
W:
All right. Anything else?
HMJr:
No. I've got some messages for Mrs. Klotz, if
she'll go to her room, please.
W:
All right. Good-bye.
HMJr:
Hello?
W:
Hello.
HMJr:
One thing: just let me talk to Pehle a minute.
W:
Here, John.
John
Pehle:
Hello.
HMJr:
John.
P:
Yeah.
HMJr:
I'm not very far from Oswego, here, if I wanted
to drop in to that camp, how much notice would
I have to give you?
P:
Oh, just a few hours, because we'll just talk to
Interior and they have a man - camp manager there.
I'm sure he'd be glad to see you.
HMJr:
Well, I may -- I may decide to go there, myself.
P:
Well, you just let me know.
HMJr:
Okay.
P:
All right, sir.
Regraded Unclassified
TREASURY DEPARTMENT
16
INTER OFFICE COMMUNICATION
DATE August 28, 1944
TO
Secretary Morgenthau
FROM
Mr. White
1. We are arranging to have some Germans come to the Treasury to
discuss the matter with us. We feared having a large number come
because of the possible unfortunate consequences of publicity at this
time.
2. I spoke to Mr. McCloy this morning. He doesn't feel that he
wants to call back General Holmes and Colonel Bernstein at this time.
He said neither of them in his judgment could contribute much to de-
cisions which need to be made at the high policy level. General
Holmes, he said, was also very busy on some French matters. He thinks
that the military people will be able to work out a satisfactory hand-
book after a policy decision has been made here in Washington.
I transmitted your message about getting in touch with Hull and
he said that he didn't feel that Hull is very enthusiastic about it
so he spoke to Harry Hopkins last night and Harry Hopkins said that
he would try to push the matter. He advised me to get in touch with
Harry Hopkins at once. I talked it over with some of the people here
and we decided not to.
3. We spent most of the day discussing the problem and are
trying to formulate a program. We will continue working on it.
Regraded Unclassified
17
- 2 -
You may be interested 'n glancing at the enclosed memoranda,
one prepared by Mr. Nathan, and the other of somewhat different
recommendations prepared by Mr. Bitterman. Others are in prepara-
tion. These will form a basis for discussion.
Regraded Unclassified
18
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE August 28, 1944
TO
Rr. White
FROM
Ar. Bittermann
Subject: Proposal for the Division of Germany as a Preventive of Military
Recovery
1. The basic consideration in these proposals is that the industrial means
for military aggression should be removed from German jurisdiction.
2. The population should be divided so as to leave the northern German
population together and to place the southern German population in a separate
unit, if possible.
3.
The U.S.S.R.'s insistance upon the Curzon Line as the eastern border
of Poland with the promise of giving Poland compensation in the west must
be recognized. The U.S.S.R. has also recently made claims to the ice-free
port of Koenigsberg. In the maps accompanying this report, these factors
have been taken into consideration.
Flan I. Division of Germany with cession of territory
to the Netherlands, Belgium and France.
Boundaries
It is proposed that the new north German state be bounded on the west
by the west border of the old state of Oldenburg excluding however the
port of wilhelmshaven and adjacent territory and follow roughly the line
of 7°30' east to the Rhine at the city of Neuwied. The boundary continues
along the Rhine to Mainz. The southern boundard is along the Main River
and the old Bavarian border to the Czechoslovak border. The east boundary
beginning at the city of Stettin proceeds south along the Oder River to
its junction with the Neisze, following the Neisze to the Czechoslovak
border in the vicinity of Coerlitz. The north border would be changed
to transfer the province of Schleswig and part of Holstein to Denmark.
The Line vould run approximately between Lübeck and a point in the Elbe
opposite the town of Stade.
These lines of demarcation would have the following effects on the
military and economic situation of Cermany. The Kiel Canal would be in
Danish territory with ample space for its protection to the sath. The
line of 7030' and the Oldenburg borders would exclude the Ruhr valley with
Regraded Unclassified
19
- 2 -
all of its industrial installations from the German state. The Dortmund-
Ems Canal would also be outside of German territory, since this canal is
essential to supplying the iron ore to the Ruhr steel works. The sath
border follows approximately the borders of the old states of Baden,
Wuerttemberg and Bavaria while the eastern burder provides for the com-
pensation in territory to be given to Poland as a result of Russian
appropriation of the White Russian and Ukranian segments of old Poland.
In the map Silesia is given to Poland.
It is proposed to erect a new south Jerman state to be composed of
the Republic of Austria and the former states of Bavaria, Nuerttemberg
and Baden and the portion of Hessen-Darmstadt on the right bank of the
Rhine. Those parts of Bavaria west of the Rhine are to be excluded.
It has been agreed among the Allied powers that Austria will be re-
established as a separate state but no boundaries have been set. The
old Austrian Republic, however, had an unbalanced economy since the
city of Vienna was too large for the relatively poor agricultural
hinterland. The new state would combine the rich agricultural land of
Bavaria with the Austrian state 80 as to produce a more balanced economic
unit. It would have important industrial centers at Munich, Vienna,
Stuttgart and Mannheim, but little heavy industry.
It is proposed to extend the French borders to the Rhine to the
city of Coblenz. This would given Trance the Saar Basin and so would
supplement the industry of Lorraine. The Ruhr valley is divided
between the Nethorlands and Belgium. It may be possible to draw a
border midway between the Ruhr cities in which the lower section going
to Belgium would include Dortmund, Essen, Elberfeld and Dusseldorf.
The northern section parallel to the Netherlands border would include
Ruhrort, Gelsenkirchen, Harm and Muenster. The line could be drawn
so as to divide Krefeld and Muenchen-Gladbach. These industrial cities
could then be given to the Netherlands and Belgium, respectively, or
combined with either segment so as to give a. more balanced industrial
unit. Further investigation would be required on this division of
the Ruhr territory. The city of Aix-la-Chapelle would be in the Belgian
section.
Economic Consequences of the Division
The proposed partition would leave the north German state with a
predominantly agricultural territory. It would include, however, the
manufacturing industries of Berlin, Dresden and Leipzig. It would contain
the important seaports of Hamburg, Bremen and Lubeck. This north German
state would lack heavy industry (steel), particularly since the Silesian
industrial and mining district has been allocated to Poland under this
proposal. The south German state would contain the important industrial
centers of Vienna, Munich and Mannheim. This area would also not have
extensive heavy industries.
Regraded Unclassified
20
- 3 -
The important industrial and mining areas under this proposal are
divided among small nations, except for the Saar Basin, going to France.
At the present time the Netherlands contains little heavy industry and
lacks supplies of coal and steel. The addition of the northern part of
the Ruhr territory and the agricultural land adjacent to the Netherlands
would supplement the requirements of the Netherlands economy. Belgium
already has a considerable heavy industry but the addition of this
territory would make Belgium industrially stronger. Poland as constituted
before the war had important industrial centers in Warsaw, Posen and Lodz.
The new alignment would add the industrial city of Breslau while the port
of Danzig could again be used by Poland to supplement the facilities of
Gdynia. By securing all or most of Silesia, Poland would have a produc-
tive industrial area added which would give its economy greater balance.
It might be desirable in view of the location of rivers and the use of
the Oder as a border of the new Poland to internationalize the port of
Stettin. The present proposal has not suggested any change in the borders
of Czechoslovakia. It might be desirable to give Czechoslovakia a portion
of Silesia so as to add to Czechoslovakia's industrial strength.
Population
Germany before the war contained a population of 66 million. AS the
map is divided here, the north German state would contain a population of
approximately 30 million of whom from 10 - 12 million would be in cities
over 50,000 population. The guess may be hazarded that approximately
half of the population would be engaged in agriculture and the remainder
in manufacturing and trade. The south German state would contain a popula-
tion of approximately 20 million, of whom 5 million would be in larger
cities. Vienna alone has a population of almost 2 million while Munich
has a population of 700,000.
The area given to France would contain approximately 2 million;
to Poland 6 million; and to the Netherlands and Belgium 12-13 million.
This distribution of population raises certain serious political
questions. The land assigned to France would create no special problem
since the 2 million would be small in comparison to the French population.
The addition to the Netherlands and Belgium, however, would be serious
since the territory given to the Netherlands would contain almost as
many people as the Netherlands proper did before the war. Five million
would be added to Belgium's population of 8 million. These minorities
would be so large as to create political instability in the countries to
which they were added, particularly in view of their conflicts over
minority problems in the period preceding the war. Moreover, there is
the danger that these populations, if aligned with groups in the original
state, might assume a dominant role in the political life of the countries
Regraded Unclassified
21
- 4 -
to which they were attached. They might even have the effect of drawing
Belgium and the Netherlands into the general orbit of German political
thinking. This constitutes the greatest weakness of the proposal submitted.
These difficulties could be avoided only by a wholesale transfer of popula-
tions from the ceded areas.
Social Considerations
The proposed south German state would be culturally fairly homogeneous.
The population speaks a group of related high German dialects, the dialects
of Austria and Bavaria being partly identical. The south German state
would be predominantly Catholic with, however, large Protestant enclaves in
Wuertiemberg and parts of Baden. The north German state suggested here
would be culturally less homogeneous. The south portion is essentially high
German in dialect, whereas the north portion speaks low German. The area is
predominantly Protestant, through there would be considerable Catholic
minorities scattered about.
The principal problem arises with the territory separated from Germany
and added to other countries. The population detached would most probably
be too large to make possible a transfer to the new German states. Moreover,
the industry of the Ruhr and the Rhineland could not be continued without a
large population. These areas added to the Metherlands, Belgium, and
rance are among the more prosperous parts of Germany. The population
would probably prefer to continue in its old location rather than to move.
In this case, Belgium, Wetherlands, and Prance would be confronted with
serious problems of linguistic minorities. While the population added to
the Metherlands in the territory west of Odenburg does not differ greatly
in dialect from the eastern Netherlands, both areas speaking low-Saxon
dialects, the Ruhr area would constitute an entirely foreign population.
It would also add to the difficulties which the Netherlands has had with
its minority groups, particularly in the southeastern section, who have
been politically inclined toward Germany. There would be further
religious complications in that there would be considerable additions to
the Catholic minority in the Netherlands. The area added to Belgium
would be predominantly Catholic and so would not add religious difficulties
to the Belgian situation. It would, however, add a considerable German
minority and Belgium has for many years had its conflict between the
French-speaking and Flemish-speaking parts of its population. In the
case of Poland, a large German-speaking population would be added to
Poland. This would undoubtedly create difficulties because of the strong
opposition of the two groups. The German population added would also be
largely Protestant whereas the effect of applying the Curzon Line to
Poland would be to eliminate from the Polish state almost entirely the
non-Roman Catholic sections of its population.
Regraded Unclassified
22
CENTRAL EUROPE
GOODE'S SCHOOL ATLAS OUTLINE MAP No. OGS 337
=
18
Daning
I
Brinch
Porman
WaySAW
POLAND
Drug
(Sitted
Brulen
Krokbe
Preha
Minkin
FRANCE
Vision
non
Switz
AUSTRIA
HUNGARY
RUMANIA
24
. Rand METARY & Company Chap
"
is
14
$
Even Gode's School After, - 139-123
the
-
- 1+1 00000% - lack la 04 alles.
Code Projection
Regraded Unclassified
23
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE August 28, 1944
TO
Mr. White
FROM
Mr. Nathan
Subject:
Partition of Germany
The purpose of partitioning Germany into several autonomous
states is to make it difficult for her to use again her economic
potential for aggressive purposes. An attempt must be made therefore
to arrange the partition in such a way that the several new states will
not want to reunite when military occupation is withdrawn.
To accomplish this objective the following principles should guide
the partition:
1. The new states should be as homogeneous in themselves as
possible, either ethnically or religiously. If that were
possible, it could be hoped that the new states would
develop into conscious entities, held together by certain
common bonds, and would not seek reunion with each other
as they otherwise might.
2. The partition should be so arranged that the new states
do not depend upon each other economically. This means
that industries which have been built up in dependence
upon each other - such as the coal and iron industries
in the west of Germany -- be not separated politically.
If they were separated the two states would want to
work out an economic arrangement between themselves and
would tend to reunion.
3. Any attempt toward economic self-sufficiency of the new
states should be discouraged. They should depend on
buying industrial and agricultural raw materials from
the world outside of old Germany. That would make sure
that their economies would be geared to participation in
world trade. Even if they were to reunite later, they
could obtain greater economic self-sufficiency for war
only after many years of preparation. Custom union among
the several states should, of course, be forbidden, to
make sure that the new states do not automatically develop
into an economic unity and build up their economies
adjusted to each other. Similarly, the tariffs on
Regraded Unclassified
24
Division of Monetary
Research
- 2 -
agricultural raw materials such as wheat and rye should be
removed to prevent self-sufficiency in food of each
individual state and of the several states together should
they ever reunite.
4. In determining the partition, it should be seen to it that
the economic potentials of old Germany be 80 distributed
and the new states be economically so balanced that, after
several years of readjustment and reorganization, they may
achieve a certain level of prosperity and a fairly tolerable
standard of living. If they would not do so, political
unrest is bound to develop; the urge for reunion may then
become so intense that only military intervention could pre-
vent it. Whether military intervention for that purpose
could be expected years after the war, is, in the light of
previous experience, very doubtful.
5. The partition should be so arranged that typically and
genuinely German territories be attached to neighboring
states as sparingly as possible. In the case of annexa-
tion, it cannot be assumed that voluntary mass migration
into the remnants of Germany would take place to a suffi-
ciently large extent. Many people would want to stay where
their forefathers and they themselves have lived for many
years. Others would want to stay for political reasons in
the hope to work for reunion with Germany. The political
problems created by minorities separated from the country
to which they want to belong are too well known to need
elaboration. Compulsory migration of all people of
decidedly German origin would not solve all political
problems and create difficult economic problems. Moreover,
should migration take place, it might be difficult for the
annexing countries to find a sufficient number of people to
operate the industries in the annexed territories.
No partition could be devised that would be compatible with all
these principles. The problem is to find an optimum solution. It
appears to this writer that the partition suggested by Mr. Sumner Welles
in his recent book "The Time for Decision" has many merits in this
respect and may be used as a basis of discussion. Mr. Welles suggests
that no territory be detached from Germany and annexed to neighboring
countries except East Prussia; and that in return for East Prussia, a
small part of western Poland be added to the pre-1939 Germany for reasons
of economic stability. Germany would be divided into three parts, one
part comprising the entire south with the extreme west of the country,
a second part comprising the extreme north and all the central parts of
Germany roughly west of the river Elbe, and a third part comprising the
Regraded
Inclassified
25
Division of Monetary
Research
- 3 -
entire east and southeast. In the discussion that follows the three
parts will be designated in the order just mentioned, I (south), II
(west), III (east).
"I" would comprise the territory covered so far by Bavaria,
Wurttemburg, part of Hessen, the Sear, and part of the old Prussian
Rheinprovinz west of the Rhine. II would comprise the Rheinprovinz
east of the Rhine, the other part of Hessen, Hessen-Hassau, Thuringia,
Westphalia, Hanover, Oldenburg, Hamburg, Bremen, Schleswig-Holstein,
the Prussian province Saxony, Lippe, Brunswick, and Anhalf. III would
include the Prussian provinces Silesia, Brandenburg with Berlin, and
Pomerania, and, furthermore, the states of Mecklenburg and Saxony.
Added to the territory of III just described would be & strip of land
taken from western Poland; the eastern border of that strip would run
about parallel with the 1939 eastern border of Germany, reaching east
almost to Danzig.
No partition could be suggested that would be in harmony with the
first principle stated above. For no partition can be thought of that
would carve out ethnic or religious entities. However, Mr. Welles'
suggestion seems to answer the purpose as well as at all possible.
"I" would constitute both politically and religiously a fairly homogeneous
state. It would include all the old south German states which have
felt for many decades closer to each other than to the rest of Germany.
The whole state would be fairly homogeneous religiously since a very
large part of the population of that territory is Catholic. No such
positive statement regarding homogeneity could be made about either II
or III. The northern parts of both II and III might be considered
ethnically fairly homogeneous. But other parts are added to both II
and III which present many differences among themselves, religiously,
ethnically and according to their economic structure. It should be
added, however, that no other division could be suggested that might
correspond to the first principle stated above more closely than
Mr. Welles' proposition.
Except for a few cases, Mr. Welles' suggestion would not change
administrative and state borders. This seems to be a wise approach
since some kind of unity exists in each of the old separate provinces
and states; and it would not prevent the political decentralization of
the Prussian state which Mr. Welles does not recommend, which, however,
would be highly desirable.
As far as the economic structure of the three parts is concerned
the partition, as suggested, seems to be fairly consistent with the
principles laid down above. Each of the three parts is a mixture of
agriculture and industry. None is self-sufficient. Many adjustments
Regraded Unclassified
26
Division of Monetary
Research
- 4 -
would be necessary. But it can be hoped that after a number of years,
they would be able to develop into fairly well integrated economies.
Industries which have grown up in dependence upon each other would,
by and large, not be separated by political frontiers. The urge for
reunion would hence not be stimulated by immediate economic interests.
The following table gives some rough indication about the population
and about the economic resources of the three different states. More
detailed material, particularly about the production of raw material
in each of the three territories and about the productive capacity of
various industries, was not available either in the Treasury Library
or the Library of Congress.
Population and Resources of Germany, after partition
I
II
III
Population (1933)
in millions
18.3
22.1
23.9
Natural Resources
in percent of total available resources:
anthracite
24
70
6
soft coal
30
20
50
iron ore
20
80
I
Agricultural Production
in percent of 1936 totals:
wheat
35
45
20
rye
18
34
48
potatoes
25
32
43
The partition, as suggested, would leave the Ruhr industry almost
completely in state "II". (The industry west of Rhine would belong to
"I". However, the bulk of what is called the "Ruhr" with all the
dependent industries is east of the Thine and would hence belong to "II").
This writer feels that, in view of the objectives laid down above, this
would be the most commendable solution. If the Ruhr industry would be
divided, say, between I and II, large parts of it would either have to
be destroyed completely -- which, from the point of view of European
reconstruction, would be a senseless thing to do - or the different
parts would tend to close economic arrangements among themselves. Close
economic ties would hence develop immediately between the two states.
To prevent Germany from using her industrial potential for preparation
of another war is to a large extent a political and not an economic
Regraded Unclassified
27
Division of Monetary
Research
- 5 -
problem. Political and military control is necessary (1) to prevent
clandestine war preparation in industrial equipment, (2) to suppress
certain industries completely (airplane, synthetic oil and rubber,
etc.), (3) to regulate the importation of raw materials. In addition,
the nationalisation of the coal and iron and steel industries should
be seriously considered. The United Nations could control the
industries more easily if they were owned by the states themselves
and could prevent more readily clandestine preparation for war. Since
the coal industry provides many other industries in the neighboring
districts which are important for war preparations (chemical industries!)
with indispensable raw materials, government ownership in the coal
industry (as also in the iron and steel industry) might be very helpful.
As mentioned before, Mr. Welles' scheme of partition is suggested
here merely as a basis for discussion. The need for several qualifications
is obvious. The annexation of the Saar by France and of Upper Silesia
by Poland which might be feasible without creating difficult political
problems would tear off Germany important raw material and manufacturing
industries and would weaken her considerably should the three parts ever
reunite. Similarly, the annexation of the extreme north by Denmark
should be considered for strategic purposes. The partition of the
old Prussian Rheinprovinz into I and II would need careful scrutiny.
It may be possible to devise a scheme that would take some parts of the
Ruhr into I, weakening thereby the Ruhr as an entity in itself.
It may be noted that Mr. Welles does not suggest to add Austria
to I, the south of Germany. This is in line with the declaration of
the United Nations at the Teheran Conference.
Regraded Unclassified
nathan GOODES SCHOOL ATLAS OUTLINE MAP No. OGS 337
28
CENTRAL EUROPE
14
is
Poland
. dand Band a Company, Chip
is
14
14
18
29
-
I
.
I
Scale 14 000000, - 1 la 01 -
Regi adeo.
Cash Projection
29
Treasury Department
Division of Monetary Research
Date Sept. 5, 19449
To:
Mrs. McHugh
The Secretary may be interested
in the second paragraph of this letter.
H.D.W.
MR, WHITE
Branch 2058 - Room 2141
30.82
30
PAYICTORY
BUY
TREASURY DEPARTMENT
WASHINGTON 25
AIR MAIL
AIR POUCH
August 28, 1944
NO. 66
PERSONAL AND CONFIDENTIAL
Dear Mr. White:
There is enclosed, for your information, a copy
of the "work program for the next three weeks" which
has just been issued by Col. Bernstein's branch of the
new German group. In this connection, I would very much
appreciate your sending me information at the earliest
possible date as to what is happening with regard to the
civilian and military personnel for the new German work
which was discussed with you during your recent visit.
Any action which you can produce along this line will be
much appreciated.
For your information, Col. Bernstein is working in-
tensely and with great vigor in producing converts up
and down the line, and in influencing the revision of
documents, in connection with the new German program. We
hope to send you some illustrative documents in the very
near future. We are all most anxious to hear of the
course of events in this regard in Washington since your
return.
Just & word concerning the cable which we sent yes-
terday, August 27, - No. 6971 - concerning the pressure
on the part of the British business and financial interests
to get back into France and its possible relationship to
Hoffman's mission. This cable was prepared in collabora-
tion with Col. Bernstein and was cleared with the Ambassa-
dor. The information relative to the pressure on the
part of the British business men came through SHAEF chan-
nels. The suggestion for sending the two Army officers
originated with the British. Col. Bernstein suggested
that if the Army officers were to go into France in advance
of the SHAEF mission, they should be accompanied by civi-
lian representatives. SHAEF still has this matter under
consideration. We thought we ought to present this picture
to you as we knew it in order that you could consider all
relevant factors in making a decision. The Ambassador was
anxious that you should not get the impression that any
decision or policy had been reached at high British Govern-
ment levels to allow British business men and financial
Regraded Unclassifie
31
-2-
interests to reenter France at this point. He felt
sure that no such decision would be reached except in
common with the United States. We told him that we did
not think the cable carried any implication which would
mislead you into believing that any policy decision had
already been reached by the British to allow such interests
to reenter France. (Mr. Phillips was not here at the time
that the cable was transmitted).
For your confidential information, I am pleased to
report that the Ambassador called me into his office yester-
day for a meeting with himself, Sir William Strang, Playfair
of the British Treasury, and Moseley (whom you met during
your recent visit). The subject of the meeting was the
Armistice terms with Bulgaria. A draft of the terms had
been agreed upon only the day before and submitted to the
respective Governments. The British Treasury had subsequently
suggested the addition of a clause providing for the furnish-
ing by Bulgaria of such supplies, services and facilities
as the Allies may require, and for the redemption and handing
over to the Allies of any currency which they may issue in
Bulgaria. In order to meet anticipated objections from the
Russians (who are anxious in this case to avoid catch-all
clauses which may have the effect of turning the Armistice
into an unconditional surrender and thus jeopardize the
chances of its immediate acceptance), the meeting agreed on
language which would, in substance, limit the right on the
part of the Allies to require such supplies, etc., to supp-
lies, services and facilities as may be required for use of
their forces or missions in Bulgaria, or for the prosecution
of the war. It was also agreed to delete the provision re-
quiring the Bulgarians to redeem currency which the Allies
may issue. The British Treasury also proposed a clause, to
which the meeting agreed, giving the Allies a veto power
over all transfers of Bulgarian assets. The sense of the
meeting was to be transmitted to the State Department for
approval. My general attitude was that Bulgaria should be
made to pay as much of the cost of the war as possible; that
I was not, of course, in a position to weigh the desirability
of these clauses against the political factors involved, but
saw the necessity of accommodating our demands in some mea-
sure to the desires of the Russians; and (although I did not
so state) that in the end these clauses would not have much
meaning insofar as the United States is concerned because
of the small likelihood that we would have any troops or
substantial interests in Bulgaria.
Regraded Unclassified
32
-3-
I also enclose a memorandum concerning a conference
at the British Treasury on the currency problem in
Alsace-Lorraine.
Sincerely,
L. L.Carous C. Aarons,
U.S. Treasury Representative
Mr. Harry D. White,
Assistant to the Secretary,
Treasury Department,
Washington 25, D. C.
Attachments.
Regraded Unclassified
33
THE AMERICAN FORUM OF THE AIR
COAST TO COAST MUTUAL BROADCASTING SYSTEM
1627 K ST. . N.W.
WASHINGTON 6,D.C.
METROPOLITAN 0010
THEODORE GRANIK
DIRECTOR
August 28, 1944
The Honorable
Henry Morgenthau, Jr.
The Secretary of the Treasury
Washington 25, D.C.
Dear Mr. Secretary:
I was delighted to receive your kind and
gracious letter. It was a privilege to plan and
develop the program with you and your associates,
and I am happy to report that all the comments I
have heard from various parts of the country in-
dicate that it proved most successful.
I am looking forward eagerly to the pleasure
of meeting with you again in the near future.
Sincerely yours,
TG/p
DEDICATED TO DEMOCRACY'S IDEAL - THE FULL AND PUBLIC DISCUSSION OF ALL SIDES or ALL ISSUES
Regraded Unclassified
24
THE FIRST NATIONAL BANK OF CHICAGO
CHICAGO ILLINOIS
EDWARD E BROWN
PRESIDENT
August 28, 1944
My dear Mr. Secretary:
Thank you very much for your
letter of the twenty-fifth, stating
that you are sending me a copy of the
broadcast given last Tuesday night on
the American Forum of the Air. I shall
be very glad to have it.
I am going to spend the first
week of next month in New York City
talking with a number of bankers there,
as well as before the Executive Committee
of the Council on Foreign Relations.
Sincerely yours
The Honorable Henry Morgenthau, Jr.
The Secretary of the Treasury
Washington, D. C.
EEB h
Regraded Unclassified
35
POLYCTORY
BUY
EXECUTIVE OFFICE OF THE PRESIDENT
WAR REFUGEE BOARD
WASHINGTON 25, D.C.
OFFICE OF THE
EXECUTIVE DIRECTOR
AUG 28 1944
My dear Mr. Secretary:
I am enclosing herewith a copy of the
report of the War Refugee Board for the week of
August 14, to 19, 1944.
Sincerely yours,
J.W. Pehle
Executive Director
The Honorable,
The Secretary of the Treasury.
Enclosure.
Regraded Unclassified
36
Report of the War Refugee Board
for the Week of August 14, to 19, 1944
SITUATION IN HUNGARY
United States and Great Britain Accept Horthy Offer
On August 16 we were advised that the British had
finally agreed to join the United States in accepting the
Horthy offer, and on August 17 the following joint statement
was issued by the two governments:
"The International Committee of the Red Cross has
communicated to the Governments of the United Kingdom
and the United States an offer of the Hungarian Govern-
ment regarding the emigration and treatment of Jews.
Because of the desperate plight of the Jews in Hungary
and the overwhelmingly humanitarian considerations
involved the two governments are informing the Govern-
ment 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 Govern-
ments 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.
Conditions in Hungary
It may well be that the action with respect to the
Horthy offer will prove to be fruitless. Board Representa-
tive McClelland advised us of reports which had just reached
Switzerland from reliable Jewish sources in Budapest giving
additional information on the present situation of Jews in
Hungary. In spite of the preliminary reassuring news of
the agreement between the International Red Cross and the
Hungarian Government for emigration of Jews to Palestine
and elsewhere and for relief to Jews remaining in Hungary,
it now seems that ranking Gestapo agents sent to Budapest
Regraded Unclassified
37
- 2 -
to direct deportations of Jews have no intention of per-
mitting them to emigrate freely, especially to Palestine,
if they can prevent it. After the attack on Hitler and
following the rapid worsening of the German military
situation, the Gestapo in Budapest shifted their interest
from the ideological aspect of Jewish extermination to the
purely material benefits in goods, labor, and money to be
derived therefrom. Their attitude is revealed in a declara-
tion, made by the Gestapo head to one of the sources of
McClelland's information, that he wished to pump out the
necessary labor from Hungarian Jewry and sell the balance
of valueless human material against valuable goods.
On the other hand, the Hungarian Government, led by
Horthy, apparently has been frightened not only into stopping
deportation, but also into trying to make up, by favoring
an emigration and relief program, for the unsavory role it
has already played in the persecution and deportation of
Jews. The Director of the Budapest Office of the Jewish
Agency for Palestine has been permitted to set up an office
in the Swiss Legation, where active preparation is being made
for the emigration to Palestine of the 8700 families previously
mentioned.
In connection with the statement contained in the Hungarian
Government's reply to our note of June 26, 1944, to the effect
that the Hungarian Red Cross will be permitted supervision of
deportation of Jews for work abroad, we advised Minister
Harrison and Board Representative McClelland in Bern of the
substance of similar information contained in a note from the
Hungarian Legation in Stockholm to the Swedish Foreign Office.
In view of the possible extermination of 400, Jews said to
have been already deported, we requested that they suggest to
the International Red Cross the urgency of contacting the
Hungarian authorities and the Hungarian Red Cross with a view
to establishing immediate Red Cross supervision over all camps
to which Jews from Hungary have been deported in the past. We
also asked that the Swiss Foreign Office be requested to
transmit to appropriate Hungarian officials a message along
the following lines: referring to the statement in the Hungar-
ian Government's reply to our note that Jews deported from
Hungary had been "placed at the disposal of the German Govern-
ment as workers"; requesting that, in view of the policy of the
German Government with regard to Jews, which the United States
Government assumes is well known to the Hungarian Government,
we be furnished with a statement of measures which have been
and are being taken by Hungarian authorities to insure humane
treatment of Jews placed at Germany's disposal and to safe-
guard them against starvation and persecution; and stating
Regraded Unclassified
38
- 3 -
that any cases of abuse will be imputed to those Hungarian
authorities responsible for placing such Jews at Germany's
disposal.
Visas for Refugee Children from Hungary
United States consular officers in Switzerland, Spain,
and Portugal have now been authorized to issue visas to
refugee children arriving in Switzerland from Hungary.
Previous instructions concerning 5,000 United States visas
which had been made available for refugee children from
France were amended to include the issuance of such visas
to refugee children from Hungary.
The Governments of Honduras and Ireland have consented
to extend to refugee children from Hungary their acceptance
in principle of our proposal with respect to refugee children
from France.
Reports on Rescue Work in Hungary
Representative McClelland advised of reports recently
received concerning underground rescue work which the Jewish
Hechaluz organization is conducting intensively, working out
of Bucharest, Bratislava, and, particularly, Budapest. While
the mode of rescue is expensive, requiring funds to obtain the
collaboration of minor Rumanian and Hungarian officials and to
pay transportation and maintenance costs, administrative person-
nel, and false paper "passeurs, It it has yielded positive results.
By taking advantage of the willingness of certain Hungarian
officials, non-commissioned officers, and soldiers in army
units along the borders of Rumania and Hungary to help with
the flight of imperiled Jews, the uneasy breathing spell in
Hungary since the July 9 suspension of deportations has been
utilized to the utmost. Relay points have been set up on
either side of the border at Segesvar, Brasso, Temesvar, and
Arad, and assistance has been given to the flight of all cate-
gories of endangered Jews, including orphaned children, and
especially to those who have escaped from ghettos, prisons,
and military forced labor battalions in the provinces of Hungary.
One report from Bucharest places at 1,650 the number of persons
already evacuated to Rumania, with 210 waiting to cross the
border in the Arad region.
Efforts are also being made to assist the flight of smaller
groups to Slovakia, where the situation is less critical.
Reports from Turkey
Board Representative Hirschmann advised us of reports
through reliable sources out of Hungary that the warning emanat-
ing from the Board and transmitted by radio to the Hungarians
Regraded Unclassified
39
- 4 -
has had a salutary effect and that the Hungarians are beginning
to show some signe of resistance to the Germans.
Hirschmann also reported information received from an
authentic source that the Catholic Church has taken an active
part in rescuing many Hungarian Jews by means of conversion
of Jews to Christianity. Nazi attempts to oppose these measures
have met with the response that the church has authority to
baptize immediately any person who is in imminent danger of
death. Groups of Hungarian Nazis entered churches and broke
up religious classes which were being held for Jews, with the
result that most of the baptiems now take place in air raid
shelters where hundreds of Jews are baptized during air raids.
It is reported that more Jews have been converted to Christian-
1ty in the past month than during the last fifteen years.
At a meeting arranged by International Red Cross Representa-
tive Simond for Hirschmann with Baron Thierry, Counselor of the
Hungarian Legation at Ankara, the latter, who 1e reportedly
sympathetic to the cause of the minorities, read a Hungarian
Government decree dated July 18, concerning the amelioration of
the conditions of some members of the Jewish community in
Hungary. He then declared that there have been no persecutions
and no maltreatment of Jews within Hungary, and that the
Hungarian authorities only assisted in a routine way and not
on their own initiative in the former deportations, to both
of which statements Hirschmann took exception.
Baron Thierry further states that efforts should be made
to determine the practicability of the steps provided in the
decree before attempting to introduce broader measures, and
that congestion of rail traffic on the one railroad leading from
Budapest to Istanbul would unquestionably delay the proposed
refugee movement by this route. In view of the latter,
Hirschmann recommended that consideration be given to the
proposal that the United States supply railroad cars possibly
available in the Middle East for transporting refugees from
Budapest to Istanbul and suggested an alternate route via
Belgrade and Svfilengrad, circumventing Rumania.
In response to Hirschmann's request that, in view of the
Hungarian Government's reported adoption of an independent
political position vis-a-vis the Nazis, the July 18 decree be
broadened to improve the condition of additional categories of
Jews in Hungary, Baron Thierry suggested that recommendations
concerning this possibility be presented by "official bodies"
to the Hungarian Government which, he was confident, would be
sympathetic and open to any recommendations. He requested that
his name not be disclosed in connection with the interview, to
which he had agreed on his own initiative without consulting
his superior, the Hungarian Minister to Ankara, who is said to
be notoriously pro-Nazi.
Regraded Unclassified
40
- 5 -
FOOD PARCELS PROGRAM UNDER WAY
During the past week e. meeting between representatives of the
American National Red Cross and the War Refugee Board resulted
in an agreement that the former would arrange all the details
in connection with the packing and shipping of three-kilo
parcels to unassimilated persons in camps in enemy Europe
under the International Committee of the Red Cross' super-
vision. The War Refugee Board made the necessary arrangements
with the Executive Office and the Bureau of the Budget for the
allocation of funds to cover the costs involved.
Taking advantage of shipping space made available by the
American National Red Cross, the War Refugee Board, in the
interest of despatching parcels immediately to these
beneficiaries, arranged for the packing of 15,000 three-kilo
parcels commercially. These parcels have gone forward on
the S.S. Gripsholm for Gothenburg, Sweden, from which point
they will be distributed by delegates of the International
Committee.
Likewise, the War Refugee Board has consummated arrangements
with the American National Red Cross and the International
Committee of the Red Cross for the purchase of 56 tons of
salvaged supplies from the S.S. Christina. These consumable
goods will be packaged by the International Committee in
Geneva into three-kilo parcels and will go forward from
that point to unassimilated persons in camps.
EVACUATIONS THROUGH TURKEY
Representative Hirschmann reported that 308 refugees who
had arrived in Istanbul aboard the "Marina" proceeded by rail
on August 9 to Syria. The group included 177 children up to
18 years of age, of whom 171 were orphans from Transnistria,
the rena inder with their parents.
Hirschmann advised that he is attempting to secure priority,
in whatever additional emigration from Rumania it may be possible
to effectuate, for approximately 1300 orphans from Transnistria
who he has learned are still in Rumania.
Report on Details of Sinking of "Mefkura"
Hirschmann informed us that 395 passengers from the "Bulbul"
and five from the ill-rated "Mefkura, it including 214 men, 137
women and 44 children, had arrived in Istanbul, where they
were quartered in a school. The initial stage of the trip
from Igneada was made over the mountains with the women and
children riding in oxcarts, the men walking the distance of
Regraded Unclassified
41
- 6 -
40 miles to Vize; from there they were taken by trucks to
Cherkaskoy, thence by train to Istanbul. Two women and two
children, the latter accompanied by their mothers, were
hospitalized in Istanbul. The remainder were scheduled to
proceed by rail to Palestine on August 15. The rescue
operations were conducted under the supervision of the
Turkish Red Crescent.
Concerning the sinking of the "Mefkura, If Hirschmann
advised us that the survivors reported that shortly after
midnight on August E the vessel was approached by three
surface craft, about the length of two railway cars and
armed with small cannon and machine guns, similar in appear-
ance to German boats which had been seen in the Constanza
harbor. The three boats opened fire on the "Mefkura" with
cannon and machine guns. One of the first shots exploded
the machinery in the machine room, and the boat was set
afire by incendiary bullets. A large number of the
passengers were wounded on the ship by gun fire; others
was caught in the flames or injured by flying bits of
machinery. Machine guns continued to fire upon many of the
passengers after they had donned life preservers and jumped
overboard.
Contrary to first reports that the "Bulbul" was also
attacked, it was not in sight of the "Mefkura" during the
attack. Later it was approached by the armed boats and its
engines shut down, but for some unaccountable reason the
boats left without firing on the "Bulbul". The latter stood
by until daylight, picked up the five survivors of the
"Mefkura" who could be found, and continued its voyage to
within 300 meters of the Black Sea entrance of the Bosporus
but because of the stormy seas it could not enter and had to
turn back to Igneada. It W&S believed that had it not been
for the storm which was raging, a larger number of passengers
might have been saved.
SITUATION IN BULGARIA
We cabled Ambassador Harriman that 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 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. We advised him that Board
Representative Hirschmann recently conferred with Balabanoff,
the Bulgarian Minister to Turkey, and requested, among other
things, that the Bulgarian authorities take steps to cease
Regraded Unclassified
42
- 7 -
persecution of Jews in Bulgaria and to afford them protection
in that country, thus obviating the necessity for involuntary
emigration; that Balabanoff had indicated to Hirschmann that
he believed the Bulgarian authorities would be favorably
disposed to taking such action and stated that the Bulgarian
Government is on excellent terms with the Soviet Government
and would exert any reasonable effort to please the Soviets.
We requested him to approach appropriate Soviet officials,
if he considers it desirable to do so, 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. We advised Hirschmann of
this request.
EVACUATIONS TO SOUTHERN ITALY
Approach to Italian Officials
The Board requested Representative Ackermann, who 1s
presently in Naples, to discuss with appropriate Italian
officials in Rome, 1f there is no objection from competent
Allied Military authorities, the Board's 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.
Intergovernmental Committee Program
Ambassador Winant forwarded to us the substance of a
telegram which the Intergovernmental Committee had received
from Heathcote-Smith concerning Papal intervention on behalf
of non-Italian refugees in Northern Italy. The message
indicates that, 88 a result of separate audiences which
Myron Taylor and Heathcote-Suith had with the Pope, the
latter will ask the German Ambassador to try to stop additional
deportations and to supply the Vatican with figures on the
numbers of Jews and others still awaiting deportation in
Northern Italy. It will also be suggested by the Pope that
the Axis should allow these people to reach some asylum.
These petitions will be made as though the Pope himself
originated them. To Heathcote-Smith the Pope made the
statement that neither his conscience nor history would
forgive him 1f he failed to make this attempt. A report
from the Papal Nuncio in Switzerland reached Heathcote-Smith
to the effect that fifty Jews in 8 concentration camp near
Modena were murdered on July 31 by Axis officials.
Ambassador Winant advised us that the Intergovernmental
Committee communicated the foregoing telegram to the British
Regraded Unclassified
43
- 8 -
Foreign Office which replied in substance that the British
High Commissioner in Rome had been requested to advise what
accommodations might be found for these refugees in freed
Italy, but that resources there are greatly strained and
military officials insist that there is a definite limit to
the number of refugees which can be brought in. The Foreign
Office in effect stated that the proposal was advanced with-
out adecuate information concerning such problems as the
likelihood of 8. substantial influx of refugees from the
Balkans and the considerable difficulties being encountered
in connection with arrangements for supplies and medical
personnel, and that until a solution can be found for these
problems, military officials are not apt to agree to the
maintenance of many thousands of refugees in Italy.
We cabled Ambassador Winant that we are shocked by the
position which the Foreign Office 1s taking, that while we do
not know whether any real possibilities exist for rescuing any
Jews who may still be alive in Northern Italy, we feel strongly
that every effort should be made to effect 8. rescue if this is
possible. We expressed our confidence that, should the
attitude of the German Government be such as to make it
possible to effect the rescue of any of these people, which
is doubtful, the resourcès and ingenuity of the American and
British Governments are such as to avoid a situation in which
these human beings, who otherwise would be rescued, would be
consigned to deportation and death.
Accordingly, we requested Ambassador Winant to press the
British Government to join the American Government in as request
to the Pope to appeal to the German authorities that rescue be
permitted, with assurances that any persons rescued will be
received and cared for by Allied authorities.
Report on Hungarian-Yugoslav Situation
After a trip to Bari, where he surveyed the Hungarian-
Yugoslav situations, Board Representative Ackermann cabled
that discussions with the British, Americans, and Partisans
indicate that possibilities for evacuations from Hungary
are not presently favorable because the Yugo-Hungarien border
is too well guarded. He was informed that the Partisans now
control an isolated region on their side of the Drava River
where Hungariens are safe but which they must reach by their
own efforts. A handful have arrived there in the last few
months. Allied and Partisan forces in this area are not even
sufficient for intelligence purposes, but the situation is
expected to improve.
There is some improvement in the Yugoslav situation.
Over 2,500 refugees were evacuated in July-900 orphan children
by air from the interior, the remainder old men, women, and
children by boat from the coast.
Regraded Unclassified
44
6 I I
There is an immediate and great need for supplies to be
brought into liberated areas to prevent several million people
from starving or freezing to death. Medicine and food,
particularly dry and condensed milk for nursing mothers and
children, are urgently needed. Approximately four million
people are homeless and many are without proper clothing.
Tents would aid tremendously but require Blane transport.
Allied authorities confirmed the statement by Partisans that
small boats are available from time to time to take clothing
to Vis for distribution from there by young men who regularly
evade guards. Stating that much difficulty is envisaged to
obtain transport for supplies but that he believes there will
be space occasionally for small amounts, Ackermann urged that
a stockpile be created so that, if transport becomes available
or the Germans pull out, aid of this nature could be provided
immediately. He indicated he would discuss this matter with
Ambassador Murphy, Army officials, and the United Nations Relief
and Rehabilitation Administration representative in the near
future.
RECOGNITION OF LATIN AMERICAN PASSPORTS
We were advised by Board Representative McClelland in Bern
that certain cualified relief organizations are being contacted
for the purpose of securing lists of individuals in enemy con-
trolled territory in whose names Latin American papers have
been issued but who do not possess these papers. McClelland
stated that too extensive an incuiry of this kind is not
recommended, however, since it may result in the compilation
of unlimited lists of individuals for whom it will be claimed
that such papers were issued in the past but could not be
transmitted to them.
In this connection McClelland referred especially to the hundreds
of so-called "nationality" papers, usually pre-dated, issued
by the Salvadoran Consulate General at Geneva, and stated that
in his opinion the forwarding of such papers into Hungary should
not be continued since such documents apparently have no value
for entry into El Salvador, they deceive neither the Germans
nor the Hungarians, and no preferential recognition is accorded
their bearers. Several cases were reported from Hungary where
the possession of false Salvador papers caused the immediate
arrest by Hungarian officials of the persons carrying the
documents, a precisely opposite effect from that desired.
McClelland indicated that it would be inadvisable, in view of
the position which the Salvadoran Government has taken with
respect to these false papers, to sanction them officially by
submitting them to the Swiss Federal Political Department,
especially when there is the feeling that any extensive increase
in the number of false Latin American papers, if directed to
the attention of the German Government, may immediately endanger
45
- 10 -
the already precarious status of thousands of holders of all
such papers who are presently in German hands and who hitherto
may have been saved from deportation primarily because the
Germans chose to accord recognition to their papers and put
them in regular civilian internment camps for American nationals.
It is probable that the Germans will continue to honor any
false Latin American papers 30 long as they feel that there
exists the possibility of a practical exchange.
PROPOSAL TO CLOSE CAMP MARECHAL LYAUTEY
With the agreement of the Department of State and the Foreign
Economic Administration, the Board requested Ambassador Winant
to make known to the British Government and the Intergovern-
mental Committee the view of the United States Government that
now would be a highly inopportune time to close Camp Lyautey
and that such action while the British and American Governments
have under consideration the Hungarian proposal to permit
thousands of Jews to emigrate from Hungary might well prove
tragic in its consequences, for in the eyes of the Hungarian
Government it might easily throw open to question the sincerity
of the professed willingness of the British and American
Governments to receive on United Nations' territory Jews and
other victims of enemy oppression. Furthermore, in view of
these promises, all possible havens must be held available
for any eventuality that may occur.
J.
Regraded Unclassified
46
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Debassy, London
DATED:
August 28, 1944
NUMBER:
6904
SECRET
FROM WAR REFUGEE BOARD.
Please deliver the following message to Sir Herbert Emerson
of the Inter-Governmental Committee from Paul Baerwald of the
American Jewish Joint Distribution Committee:
QUOTE REPORTS HAVE COME TO US THAT CREDIT OPERATIONS
IN HUNGARY NOT POSSIBLE DUE APPARENTLY COMPLETE EXPROPRIATION
PROPERTY OF JEWS. SALY MAYER ABLE PURCHASE PENGOES IN
SWITZERLAND WHICH HE SEND INTO HUNGARY. VIEW GREAT NEED
BRING RELIEF MANY THOUSANDS JEWS CONCENTRATION CAMPS,
GHETTOS, WE URGENTLY SUGGEST YOU CONSIDER FAVORABLY OUR
AUTHORIZING SALY MAYER PURCHASE PENGOES SWITZERLAND UP TO
300,000 DOLLARS FOR AID IN HUNGARY FOR ACCOUNT INTER**
GOVERNMENTAL COMMITTEE. HOPE YOU WILL DISCUSS THIS SUGGESTION
WITH JOSEPH SCHWARTZ. UNQUOTE
Following for Sir Herbert Emberon from War Refugee Poard,
QUOTE WAR REFUGEE BOARD STRONGLY SUPPORTS FOREGOING
REQUEST OF JDC. UNQUOTE
HULL
Regraded Unclassified
47
AIRGRAM
Dispatched:
From: American Embassy near
the Government of
Greece.
RESTRICTED
Dated: August 28, 1944.
Received: September 2, 12 p.m.
Secretary of State
Washington
A-58, August 28, 1944, 10:00 a.m.
The following communication has been received from
the Greek Foreign Office.
No. 17124.
AIDE-MEMOIRE
"The Royal Hellenic Ministry for Foreign Affairs
present their compliments to the Embassy of the
United States of America and have the honour to bring
to their knowledge the following:
"Since the establishment of the Allied occupation in
Southern Italy, refugees from the opposite Albanian coast
have begun to arrive at Bari. There are amongst them
many Albanian subjects of Greek origin, inhavitants
of Southern Albania, who flee from these regions in
order to escape the persecutions of the Germans as much
as those directed against them by the various Albanian
political organisations. Without us wishing to examine
here the degree of the real contribution of these Albanian
organisations to the struggle against the common enemy,
that is the Germans, they are unquestionably always in
full agreement in the purpose of persecuting the Greek
Christians whom they have set as their goal to exterminate.
"The Royal Ministry have received with much regret
the information that these Greek refugees, in arriving
in Bari, are the object of a strange and sometimes un-
friendly treatment from the various Allied Services in
that town, as soon as they declare that they are Hellenes
and not Albanians. This treatment naturally arouses in
them feelings of dismay and bitter grievances towards
those with whom they have sought refuge and whom they
have always willingly served in fighting and sacrificing
themselves for Greece and consequently for the Allied
Cause.
Regraded Unclassified
18
A-58, August 28, 1944
From: American Embassy
near Government of
Greece
- 2 -
"This situation has arisen from the fact that these
Allied Services employ as informers and in various
other capacities a number of fanatical Albanians, who
are thus in an advantageous position for calumnisting
in every possible way all refugees of Greek origin, as
a means of preventing the ascertainment that Southern
Albania is largely peopled by Greeks.
"A great many Allied Services have thus formed
regrettable and erroneous opinions about these Greek
refugees.
"The greatest proof that they are inspired by mal-
evolent reports of the Albanian employees, and that
the refugees of Greek origin are patriotic Greeks and
loyal Allies, can be found in the fact that whereas
if they declared themselves to be Albanians, they would
have received excellent treatment and would not have
been conscripted, thus having no more to do than wait
to reap the benefit of the struggle and sacrifice of
others, these refugees insist in claiming that they are
Greeks and demand to be enlisted in the Hellenic Forces
of the Middle East in order to fight the Germans.
"In view of the above, the Royal Hellenic Ministry
for Foreign Affairs feel that it is of the highest
importance and urgency to request the Embassy of the
United States of America kindly to inform their
services in Italy that in the region commonly called
Southern Albania, which is historically, ethnologically
and geographically the northern part of Greek Epirus,
there live since the dawn of history, dense Hellenic
populations, who are now subjects of the Albanian State,
but are Greeks by origin and convictions, and that such
people are entitled to be treated as Greeks and Allies.
Amongst the many recognitions of the Hellenic character
of these populations, this Royal Ministry wishes to re-
call the decisions of the American Senate on May the 17th
1920, which states that Northern Epirus, (so-called
Southern Albania) is peopled in majority, by Greeks,
and ought to be returned to Greece.
Regraded Unclassified
49
A-58, August 28, 1944
From: American Embassy
near Government
of Greece
- 3 -
"The Royal Hellenic Ministry for Foreign Affairs
thank the Embassy of the United States of America in
anticipation for their intervention in this grave
matter, which will undoubtedly contrive to protect
the Greek refugees from Albania from unjust and un-
friendly treatment, and will avert the fostering of
justified grievances against those from whom they
are entitled to expect understanding, support and
sympathy.
Cairo, August the 23rd, 1944."
A copy of this airgram has been sent to Ampoled,
Caserta, and any comments the latter may wish to
make thereon to assist theEmbassy in replying to
the Foreign Office will be appreciated.
Shantz
WB/hem
Regraded Unclassified
50
AIRGRAM
NO. A-395
TIME: 4:00 p.m.
August 28, 1944
AMERICAN LEGATION
BERN
NICARAGUAN INTERESTS - FRANCE
Reference Legation's despatch 8466, June 12.
Following, transmitted for Legation's information, is Embasay,
Manague's A-347, August 17.
"Reference Department's instruction no. 1286 of July 24.
The Nicaraguan Government has sent the following
telegram (in translation) to the Swiss Foreign Office:
'I respectfully request you to communicate
urgently with the German Government that my
Government confirms the validity of the Nicaraguan
passports held by Amalia Frucht, Boris, Cipa,
Myrian, Alejandro Lisowoder and requests that
they be returned to the concentration camp at
Vettel in reciprocity for treatment of German
nationals in this hemisphere. I request also
that you extend this request to cover all
internees who are the bearers of Nicaraguan
passporte.
Accept, Excellency, the renewed assurances
of my highest consideration."
Department's instruction no. 1286 referred to above trans-
mitted list of persons claiming Nicaraguan nationality named in
enclosure to Legation's despatch under reference.
HULL
aec
740;001155w/8-17-44
SWP:RPC:IMN
8/23/44
CCA
WRB
Regraded Unclassified
51
HIS-706
Managua
This telegram must be
paraphrased before being
Dated August 28, 1944
communicated to anyone
other than a Government
Rec'd 7:58 p.m.
agency. (RESTRICTED)
Secretary of State,
Washington.
538, August 28, 4 p.m.
Foreign Office in note dated August 25, 1944,
states that it has no objection to the 100 visas
authorized for refugee children (see my 271, May 5,
4 p.m. ) being issued to either Hungarian or French
children. Reference Department's circular telegram
of August 12, 8 p.m.
STEWART
RR
Regraded Unclassified
52
RESTRI CTED
AIRGRAM
AMERICAN EMBASSY, Consuler Section,
Lisbon, Portugal
Date:
August 28, 1944
Received: September 1, 5 p.m.
Secretary of State,
Washington.
A-715, August 28, 3:00 p.m.
The Consular Section refers to the Department's telegrem number 2118
(WRB) of July 28, 1944, and respectfully requests an advisory opinion in
the case of Henri Denis Barbet, a French national, who claims that BC forms
were filed in his behalf in September or October, 1942, by Logan Cresap,
Walbrooke Circle, Scaradale, New York, end by William Roberts, 19 Morris Lane,
Scaradale, New York.
Barbet claims to be the President of Albert Godde Bedin, Inc., 244
Madison Avenue, New York, which is said to be a subsidiary silk concern of
the name name in Lyon, France.
Barbet, who has been a resident of Lyon, claims that he last entered
the United States on August 22, 1942, and departed therefrom on October 18,
1942. On November 4, 1942, he resumed residence in Lyon and ontinued to
live there until June 29, 1944. He then managed to leave France on exit
visas issued to him by the French Prefect of Rhone at Lyon and by the German
Embassy at Vichy on April 8, and April 18, 1944, respectively.
Upon being asked how he was able to induce the French and especially the
German authorities to issue him these exit visas, Barbet explained that he
contrived to obtain from the French Department of Finance an assignment to
come to Lisbon to organize the distribution of fancy silk goods in Portugal
in order to establish a credit balance in Portuguese escudos, which was to be
used by the French Red Cross for the purchase of food for the French people.
Berbet claims that when he first approached the Germans with this and gnment
they refused to grant him the exit visa, saying that such silk as was available
in France was required by the German troops. After six months' effort, however,
be finally was able to persuade the Germans to grant him an exit visa which
permitted him to be absent from France until August 15, 1944. He claims that
the Germans would never have permitted him to leave France had they known of
his business connections in the United States, and yet he carries on his person
business cards showing that he is the President of Albert Godde Bedin, Inc.,
at 50 Cours Morand, Lyon, and at 244 Medison Avenue, New York, with mills at
DePew and Andover, New York.
Barbet Regraded Unclassified
53
RESTRICTED
August 28, 1944
- 2 -
Barbet claims that he obtained the French Department of Finance's
assignment to Lisbon for the express purpose of getting out of France
and returning to the United States. However, he still has a wife and
three grown daughters in Lyon, and upon being asked if he was not afraid
that these relatives would be subjected to persecution or intimidation
by the Germans when his subterfuge was discovered, he replied that he
and his family had encountered danger before.
Barbet said that he first entered the United States on October 26,
1926, and maintained an uninterrupted residence there until August 2,
1939. His last place of residence in the United States was given as 21
Lockwood Road, Scaradale, New York.
Barbet said that he was born on July 18, 1888, at Macon, France.
His wife, three daughters and a son were also born in France. The son
was said to be serving with the Free French Forces in Italy.
The Embassy's Security Section advises that the Office of Strategic
Services may be able to furnish the Department with further information
concerning Barbet.
A reply by airgram would be appreciated.
NORWEB
File No. 811.11
KVP/end
Miss Chauncey (For the Sec'y), Abrahemson, Aksin, Cohn, DuBoin, Drury,
Friedman, Gaston, Hodel, Laughlia, Lesser, Mann, Manaon, Marks, McCormack,
Pahle, Sargoy, Standish, Weinstein, Cable Coatrol Files.
Regraded Unclassified
54
RA-796
PLAIN
Lisbon
Dated August 28, 1944
Rec'd 1:08 a.m., 29th
Secretary of State
Washington
2643, August 28, 1 p.m.
FOR RAMMOND BRAGG BOSTON FROM ELISABETH DEXTER WRB.
165 ESC 3321.
Liberation France makes additional refugees
from France or eastward anlikely and alters needs here.
Am airmailing letter describing situation and possi-
bilities progressive liquidation including best utili-
sation staff. Important you send as soonest general
indication committee plans and wishes other European
centers even if still only tentative. I realise your
present difficulties. Your telegram regarding Brooks
just received; deeply sympathetic.
NORWEB
HR
Regraded Unclassified
55
CABLE FROM WAR REFUGEE BOARD TO AMERICAN CONSUL, JOHANNESBURG, UNION
OF SOUTH AFRICA.
Please refer to your airgram A-27 of July 25 explaining the
interest of the South African Red Cross and the South Africah
Jewish War Appeal in the efforts of the War Refugee Board for the
relief of Jews in Romania.
Please advise the above two organizations that among the
Board's activities on behalf of the Jews in Romania are the follow-
ing:
(1) Arranging, organizing and implementing programs of private
agencies for the relief of Jews in Romania:
(2) Encouraging programs for the rescue of Jews in Romania,
including their transportation to safe areas and the finding
of temporary havens of refuge for the duration of the war:
(3) Adopting measures designed to induce the Romanian Govern-
ment to desist from further persecution of its Jewish minority.
If the above named organizations are prepared to cooperate in
any way with the Board's program, we will be pleased to receive such
cooperation.
2:40 p.m.
August 28, 1944
MSargoy:dh 8/28/44
Regraded Unclassified
56
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
August 28, 1944
NUMBER:
2971
SECRET
FOR MCCLELLAND, FROM WAR REFUGEE BOARD.
Please deliver the following message to Rene Bertholet,
Waserstrasse 14, Zurich, from the International Rescue and
Relief Committee:
B OTE APPROVE TEN THOUSAND DOLLARS FOR RESCUE
ACTION FRANCE AND HUNGARY WITH DOCTOR TEHLENOFF OSE.
ALSO CONTACT LEON DENENBERG AMERICAN CONSULATE ISTANBUL
ABOUT RESCUE HUNGARY. NO CABLES FROM YOU SINCE END JUNE.
UNQUOTE
This is WRB cable to Bern No. 146.
HULL
Regraded Unclassified
57
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
August 28, 1944
NUMBER:
2972
SECRET
FOR MCCLELLAND FROM WAR REFUGEE BOARD.
Reference your No. 4904 of July 31, and Department's
No. 2895 of August 23, 1944, (WRB No. 138).
Board assumes that any work you are doing for relief of
families of the Maquis is closely coordinated with OSS and
that in areas where Army takes over our activities will cease.
Foregoing is our understanding with War Department here.
THIS IS WRB BERN CABLE NO. 147.
HULL
Regraded Unclassified
58
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
August 28, 1944
NUMBER:
2973
SECRET
FOR MCCLELLAND FROM PEHLE.
For your personal and confidential information.
Special fund of $250,000 sent to you in two installments of
$125,000 each was made available by the JDC which has been kept
advised of your reports on the use of such fund. JDC approves
such expenditures and the continued use of the fund for the
programs mentioned by you.
THIS IS WRB CABLE TO BERN NO. 148.
HULL
Regraded Unclassified
59
CABLE TO MINISTER HARRISON FOR MCCLELLAND, BERN, SWITZERLAND
Reference is made to your 5068 paragraph two. We assume that
your reference to Italian Slovakian rescue plans refers to your
4666 of July 21 and 5079 of August 7. If assumption incorrect,
please ularify.
We approve of your support (including financial aid) of reject
described in your 4666 and you are authorized to continue such
support at your discretion.
Regarding your 5079 please refer to Department's 2817 of
August 16.
THIS IS WRB BERN CABLE NO. 150.
2:45 p.m.
August 28, 1944
RAksib:FHodel:ar 8/26/44
Regraded Unclassified
60
CABLE TO MINISTER HARRISON AND MCCLELLAND, BERN, SWITZERLAND
Reference is made to Department's 2877 of August 21, WRB 122.
Please inform Swiss Government that Ireland extended in principle
its offer of refuge to 500 children to cover children from Hungary as
well as those from France. Likewise Honduras extended its offer of
refuge to 50 children to cover children from Hungary.
If you believe that it will be helpful, the above information may
be transmitted to Hungarian authorities through official Swiss or Inter-
cross channels.
THIS IS WRB BERN CABLE NO. 151
Repeat to Amembassy, London, for information of Ambassador and for
transmission to IGC.
$,30 p.m.
August 28, 1944
BAkzin,ar 8/26/44
Regraded Unclassified
61
BJR
Distribution of true
August 28, 1944
reading only by special
arrangement. (SECRET W)
5 p.m.
AMEMBASSY,
ANKARA.
752
The cable below is WRB 105.
Reference is made to your 1514 of August 18 to Department
and your 34 of August 8 to Amembassy, London.
In accordance with Department's 665 of July 28 paragraph
numbered 3, 685 of August 7 last paragraph, and circular cable
of August 18, you are requested to continue your efforts to
persuade Turkish authorities to receive Jews of all categories
released by Hungary, notwithstanding reports of Swedish Govern-
ment's consent to receive Jewish children from Hungary.
With respect to statement in your 1430 of August 5 to
Department regarding Turkish transit visas to refugees who
QUOTE hold UNQUOTE American immigration visas and similar
statements in your 1514 to Department and 34 to Amembassy,
London, please note that persons intended as beneficiaries of
procedure developed in paragraph numbered four of Department's
665 of July 28 are those whose American visas were authorized
subsequent to July 1, 1941, as well as those to whom such visas
were actually issued. Please explain this point to Turkish
authorities and request that they instruct their consuls in
Hungary and elsewhere in enemy-held territory to issue transit
visas to persons to whom American visas were authorized as well
as to those to whom American visas were actually issued.
In cases where applicants will not be able to furnish evi-
dence of authorization, such evidence will presumably be
available at local Swiss legation or consulate. In addition,
efforts will be made to send a list of visa authorizations to
you for transmission to Turkish Foreign Office which, it is
hoped, will forward it to various Turkish consulates in
enemy-held territory.
HULL
(GLW)
WRB:MMV:KG
VD
NE
SE
8/24/44
Regraded Unclassified
62
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Consul, Istanbul
DATED:
August 28, 1944
NUMBER:
363
SECRET
FROM WAR REFUGEE BOARD.
Please deliver the following message to Leon P. Denenberg
from International Rescue and Relief Committee:
QUOTE BERTHOLET WORKING WITH OSE ON SPECIAL ACTION
HUNGARY CONTACT HIM 14 WASERSTRASSE ZURICH. NOTE OUR NEW
ADDRESS 103 PARK AVENUE. UNQUOTE
HULL
Regraded Unclassified
PAP ENT OF STATE
83
IC'
AND ...k ust 2., 1944
INVISION OF
August 31,8up,m.
SEP 1 1944
ocretury or state
CUMMUNICATIONS
ashington
AND accouns
A-1048, ..ugust 28, 1944
lor the secretaries of tate one 'reasury
Paul .inzic in nie Lonbard Street column of the
Timancial Ter S of ...ust 28 compared clause IV R
of tl.e "Joint Statement" an. Article VII 3b of the Tinal
not" and asserts that the latter "matorially limits the
right of deficit countries to safeguara their position."
11s argament is that "before benefiting by VII 3b, the
deficit countries vill have to allocate invisorininately
their entire reserve in tue scarce currency. AS soon as
their in.low 01 that currency begins to exceuu the demand
they have to resume indisoriminate and unrestricted
allocation".
lie further suggests that restrictions 00.16 not 08
imposed under VII 3b so long up a golu reserve in available
to 4 deficit country. 1021 ES also says that it should be
Made cleur in hether possession of other strom, currenties
yould also preclude us benefiting by VII 3b", Decause,
unless G deficit country is obliged to pay out, say dollars,
so long 08 1t possesses any currencies convertible into
Colu, there 1.0 1a be nothing to prevent it from riuding
itself of all holdings 01' dollars as Boon as the funa had
declared them source, in order to be able to apply restrictions
Purther, he says:
"Likewise, the dericit countries would De
able to deiy the intention of the linal ..ct to
prevent
Regraded Unclassified
2 -
64
A- 1048 LONDON
provent tuch from replenishing their reserves
out of current export surpluses, so long us the
dollar remined declared scarce. There would be
nothing easier than to convert any current dollar
surplus into con or strong currencies, in order
to avoid having to allocate tie dollars for the
inport of luxuries. This be a real escape
lause : ithin the escupe clause that has been
1 oakened by the retton 0008 conference, It seems
strange that this point hus not seen made clear by
the experts. 11
Regraded Unclassified
55
NOT TO BE RETRANSMITTED
SECRET
Copy No
OPTEL No. 280
Information received up to 10 A.M. 28th August 1944.
1. NAVAL
Home Waters 26th/27th. M.T.B.'s had a sharp engagement with
about 5 enemy minesweepers off IJMUIDEN. One
Minesweeper was sunk. A British Destroyer, a British Frigate
and three groups of MTB' s engaged force of 8 Tank Landing Craft off
CAP d' 'ANTIFER, 4 T.L.C.'s believed sunk and 1 driven abhore.
The Destroyer slightly damaged by shore batteries,
27th. Two of H.M. Minesweepers were sunk while sweeping off
CAP d'ANTIFER and another damaged and taken in tow, some survivors
picked up. 27th/28th. Patrols off CAP d' ANTIFER engaged 2 enemy
convoys, N₀ further details.
28th. One of H.M. Destroyers bombed and damaged off FECAMP. 2
killed, 12 wounded and ship returning to port reduced speed. Ships
can now enter locks and berth in CAEN Canal as far as end of
OUISTREHAM jetty.
MEDITERRANEAN. On 24th/25th Coastal forces torpedoed and sank
a ship off GENOA.
EAST INDIES. Early 24th aircraft from two of H.M. Aircraft
Carriers attacked cement works near PADANG and EMMAHAVEN, the port
of PADANG. Complete surprise achieved, moderate A.A. met and little
air opposition. No attack on carriers or covering ships of Eastern
Fleet. 1 of our aircraft lost. Heavy bombs hit cement works and 2
ships of about 3,000 tons set on fire. Harbour installations bombed
and PADANG airfield attacked by fighters. During passage of convy
to North RUSSIA aircraft from two of H.M. Aircraft Carriers made
23 U-boat sightings, 14 of which were attacked, all between 40 and
75 miles from convoy. Swordfish from one sank 1 U-boat and another
was possibly sunk. 1 German aircraft shot down by Wildcats,
2. MILITARY
FRANCE. 2nd British Army has increased its bridgehead at VERNON
and repulsed 2 counter-attacks. 1st Canadian Army crossing SEINE
at PONT DE ARCHE and ELBEUF and are closing in on SEINE nearer
coast where fighting is going on in the FORET DE LA LONDE. 3rd U.S.
Army have retaken TROYES. PARIS, including BOIS DE BOULOGNE,
cleared of enemy, and all SEINE bridges reported intact.
SOUTHERN FRANCE. U.S. troops continue their advance towards
NICE. North of MONTELIMAR they have driven off counter-attack.
N.E. of AVIGNON U.S. reconnaissance troops are advancing towards
ORANGE. French have occupied AVIGNON. Mopping up continues in
MARSHLLES. TOULON captured and enemy now holds only ST. MANDRIER
Peninsula.
ITALY. Our offensive towards Gothic line was resumed on 26th.
On right of 8th Army our forces have captured F/N and crossed
METAURO River further west with steady advances. East of FLORENCE
gains of between 3 and 4 miles have been made.
RUSSIA. Russians have captured FOSCANI and GALATZ and are
along east bank of PRUTH between CAHUL and RENI.
3. AIR OPERATIONS
WESTERN FRONT. 26th/27th. Bombing well concentrated KIEL
1920 tons and KOENIGSBERG 460,
66
27th. Without loss, Bomber Command aircraft, escorted
by Spitfires, attacked HOMBERG oil plant - 770 tons; a long
range weapon installation - 800; and shipping at BREST - 130.
Results: HOMBERG - some cloud, but bombing considered well
concentrated. Weapon site - tunnel entrances identified
visually and accurately marked, bombing well concentrated.
Escorted Fortresses and Liberators found bad weather
over GERMANY and bombed targets of opportunity - 420 tons. Opera-
tions by medium and fighter bombers included attacks on motor
transport concentrations near ROUEN - 210 tons, fuel dumps near
LAON - 70; and a W/T station BOULOGNE - 40. Incomplete reports
state following destroyed: 105 locomotives, 166 oil tank
wagons, 115 railway wagons, 7 tanks, 104 M.T., 10 barges and 2
boats laden with troops. German casualties in action 4, 1, 1 and
on the ground 15, 0, 4. Ours - 16 aircraft missing.
27th/28th, Aircraft despatched: MANNHEIM - 30 Mos-
quitoes. Other tasks - 111,
GERMANY. 27th, Fortresses from Mediterranean (6 missing)
bombed North Synthetic 011 Refinery BLECHHAMMER - 355 tons, while
Liberators (10 missing) bombed South Refinery - 425 tons. Good
to excellent results reported.
ITALY AND SOUTHERN FRANCE. 25th/26th. Heavy bombers
attacked RAVENNA railway centre and Canal Terminus - 185 tons.
26th. 924 medium and light bombers and fighters attacked
gun positions TENNAU Island off MARSEILLES and close support
targets in battle areas.
27th. Liberators from Mediterranean (3 missing) bombed
railway bridg FERARRA - 120 tons, with excellent results and
viaducts at AVISIO and VENZONE - total 140 tons with good to
excellent results.
4. HOME SECURITY
During 24 hours ending 6 a.m., 28th, 33 flying bombs
plotted. All shortly after dawn 27th.
Regraded Unclassified
67
The Hew York Times
Times Square
ARTHUR HAYS SULZBERGER
PUBLISHER
August 29th, 1944.
Dear Henry:
Mr. Luxford and his associate,
Mr. Bernstein, lunched with us today.
They came at one o'clock and left &
little after four. Also Mr. Hazlitt
of our staff has agreed to go down to
Washington as soon as our vacation
strain is over and spend a day with
them in the Department talking things
over still further. I am sure that
the meeting was useful.
Yours,
am
Hon. Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D.C.
E
Regraded Unclassifie
68
OFFICE
OF
PYICTORY
TREASURY DEPARTMENT
BUY
UNITED
STATES
WAR
WASHINGTON 25
BONDS
AND
THE
SECRETARY
STAMPS
August 29, 1944
MEMORANDUM TO THE SECRETARY
I am enclosing a list of the special
items valued in excess of $50,000 as of
August 28, 1944.
Assistant to the Secretary
Enclosures
Regraded Unclassified
PROPER
FOR DISPOSAL
:
SPECIAL ITEMS, COST TO GOVERNMENT IN EXCESS OF $50,000
:
AS OF AUGUST 28, 1944
QUANTITY
UNIT COST
COST TO GOVT.
1.
Automotive Products
Disc Wheels for Gun Carriages
8800.
$28
$246 400
Artillery wheels, with special
tires. Wheels worthless; several
bids up to $9.00 each have been
received from bidders interested
in the tires.
Tires and Tubes, Truck and Bus
99,000
$1 309 336
New and used. Pro-rata offerings
to manufacturers are being accepted
and any left overs will be absorbed
by those who make original purchases.
Spare Parts, automobile, new and used
2 000 000
Majority are used parts, taken from used
motors and put in stock. The bulk of the
new parts are obsolete, or are parts for
discontinued military vehicles. Inspection,
boxing, and listing by manufacturers is going
forward prior to offering them to manufacturers.
69
Regraded Unclassifi
Page 2
Quantity
Unit Cost
Cost to Govt.
Automotive Parts, new
3,851,329
$ 4,178,838.
Recent declarations of parts
in varying quantities in many
locations. As distinct from
previous declarations these parts
are new, small parts; not obsolete
and used bodies, tanks, etc. such
as we have had before. Clerical and
inspection personnel lacking to handle
large quantities of paper and material.
Group 2. Textiles and Wearing Apparel
Magazine Belts
45,626
102 818
New declaration. Web belt with six
magazine pockets. Sample just received.
Special selling necessary.
Mosquite Bars, with rods
669,000
3,947,100
Rectangular tents of mosquito netting.
About 300,000 reported as new turned out
to be used and patched. Moderate orders
for new "bars" at $1.50 are being received
regularly. 100,000 sold to Sears-Roebuck,
in addition to other sales made in small lots.
70
Regraded Unclassified
Page 3
Quantity
Unit Cost
Cost to Govt.
Slide Fasteners
8,500,000
$.19
$ 1 615 000
Manufacturers will probably
repurchase at cost price. Inventory
being taken to determine identify of
manufacturers and will be completed
this week. Army asked additional week
to complete inventory.
W.A.C. Caps
76,712
$ 2.20
168 766
Contacts have been made with
uniform houses. An item difficult
to sell.
Gloves, rubber, anti-gas
742 000
1.00
742 000
Gauntlet type. We have been advised
unofficially by Army that they are
withdrawing this item.
Hats, Army Service
45,928
$ 3.00
137 784
The old-style, broad brimmed campaign
hat. Of original amount of 91,000,
half have been sold. Negotiations in
process for balance.
71
Regraded Unclassifie
Page 4
Quantity
Unit Cost
Cost to Govt.
Leggings
213,280 Pr.
$ 109 833
World War I stock, good only
for salvage. Now being authorized
for sale by Regions.
Belt pocket for Cartridge Clips
1,000,000
.10
100 000
Web pocket with fastener. Radio
advertiser is taking quantities
under option as requests from pro-
gram develop. Price received $.06.
Shoe pacs
10,000 pr.
5.50
99 044
Felt innersoles
55,000
.75
Shoe-pacs are rubber shoe with
leather top declared by Navyl The
Army intends to requisition shoe-pacs
and 10,000 of the innersoles.
Netting, mosquito, cotton
4,906,500 Yds.
888 040
Olive drab. New. Rolls. Negotiation
under way to sell entire lot to Navy
contractor.
72
Regraded Unclassified
Page 5
Quantity
Unit Cost
Cost to Govt.
3. Machinery
Construction Machinery, heavy
4809
$1,000 (av.) $4,809,000
All in inventory; all used. The
general condition of the equipment
is poor. Sales are being made
regularly but inventory mounts.
Machinery from Alcan Highway turns
up in Kansas City from Army Engineers'
repair shops. All in poor condition.
Ice Grousers, new
76,726 pcs.
2.70
207 160
Ice gripping shoes to be attached to
special rubber tired treads of high
speed military tractors. Each weighs
6 lbs. A tractor needs 296 pieces.
There 1s no known application on standard
machines; no market, except for scrap.
Shoes for Tractor Treads
43,853
3.00
131 559
New "grousers" (shoes to be bolted
to the flat tracks of crawler type
tractors to give traction). These are
standard replacement parts - enough for
700 tractors. Have been offered to mfr.
73
of tractor for which they are designed.
Regraded Unclassified
Page 6
Quantity
Unit Cost
Cost to Govt.
4. Furniture
Mattresses, new and used
1,042,705
$ 5.50
$ 5,734,877
175, 723 new; 866,982 used.
Used mattresses are sold only
to salvage the materials. Closing
deal this week for 250,000 used
mattresses.
Pillows, new and used
726 030
.73
530 000
Some cotton, some feather,
some mixed, 105,710 new;
620,320 used.
:
Bed Parts
65,000
Springs, heads, feet, and side
rails; unassembled. Negotiating
with bed mfrs. regarding repurchase.
5. Hardware
Scabbards, bolo
114,290
1.60
190,864
Obsolete item. No bolos available
to fit them. Bolos (curved machetes)
are largely used in the Philippine
74
Islands.
Regraded Unclassifie
Page 7
Quantity
Unit Cost
Cost to Govt.
Imprinting Machines, new
52,636
$21.95
$1,052,720
An Addressograph-plate press,
portable, designed for Army
identification purposes. Manu-
facturer's representative asked
another 10 days to determine
possible uses. Also requested that
we stop negotiating with oil companies.
Addressograph wants to make the sale as
additional quantities of machines will be
needed, a supply of plates obtained, and
service contract arranged.
Spurs, new and used
261,000 Pr.
1.40 (AV.)
365,400
Waiting radio advertisers decision to
take balance for novelty "give-away".
Word of final sale still awaited from
Chicago office.
Rafts, pneumatic life
2185
$200.
437 000
5-man rafts, completely equipped.
Price has been set - $99.50 to retailers,
$84.50 to wholesalers. There is a big
demand for sport purposes. Advertising
has gone out. Sales have been made.
Regions to report progress within week.
75
Regraded Unclassifie
Page 8
Quantity
Unit Cost
Cost to Govt.
Markers, mine field
11,378 Sets
$ 6.85
$ 77 937
Web fabric carrying case
containing 30 metal pins
(18 in.) with 4" X 4" metal
flag marked danger. A small
pocket contains two rolls of
narrow, yellow tape. New :
declaration, being analyzed.
Skiis, new and used
12,000 Pr.
14.50
174 000
7' and 7½' hickory, ridge-top
skiis with steel edges. Painted
white. 10,000 pairs have been set
aside for the Norwegian Purchasing
Commission. Inspection under way.
P.S. Norway will take 13 000 pair (including 1000 pair
just received. Chile is also interested)
Snowshoes, used
11,745
9.00
105,654
Serviceable, trail and bear paw
type snowshoes.
Snowshoes, emergency
22,837 Pr.
4.25
96,915
Paratroopers' special type, of no
value for sport purposes.
Have offer for portion at $1.00
76
Regraded Unclassifi
Page 9
Quantity
Unit Cost
Cost to Govt.
Plates, Vitrified China
1,367,809
$0.17 (av.)
$ 231 486
All with Medical Corps Insignia.
Excellent quality, good looking.
Large quantities are to be with-
drawn by Army and transferred to
the Veteran's Administration. Lend-
Lease and Maritime are still interested
in substantial quantities. We anticipate
that all will be transferred to Government
Agencies.
Hose, rubber, used
5,000
$33.50
167 500
25 Ft. lengths; 2½" inside diameter
rubber hose. Inspection by several
rubber companies now under way.
Covers and Seals, rubber
27-3/4 tons
169 245
3/4 Tons rubber seals; 27 tons
rubber seal covers. Obsolete material.
Samples have been requested.
Shotguns, double barrel, new and used
11,924
$40 (av.)
476 960
A great variety of guns (all popular makes).
Inspection in process. Disposal instructions
have been issued to Regions, to sell through wholesalers.
77
Page 10
Quantity
Unit Cost
Cost to Govt.
Lanterns, oil-burning, deck
34,460
$3.00
$ 107 316
The New York regional office has
been given permission to affect
disposal to a tax-supported body.
(Deal fell through)
Incinerators, new
34
$9,818.
333 812
Designed for human excretion but
can be used for other purposes.
A hospital and a park system each
have a slight interest. Apartment
house use may develop. New release
has brought in several offers considered
too low.
Smoke Generators
67,600
3.50
236 600
Obsolete, individual smoke pots with
chimneys. Has been on bid with no
offer over $0.11 each. They consume
too much oil and make too much smoke for
use as smudge pots for agricultural use.
Recent deal fell through.
78
Regraded Unclassifi
Page 11
Quantity
Unit Cost
Cost to Govt.
Sirens, new
28,638
$ 6.00(approx.) $ 174 569
Hand warning device for combat
use. In canvas case with shoulder
strap. Have had offer of $1.00 each-
refused because too low. (An offer of $2.00
has just been received)
Smoke Generator Parts (Vehicular)
277 000
Small metal parts (valves, fittings).
Many are special and new uses will have
to be found.
Wood Screws, Brass, New
300 Tons
1634 Items
357 000
Only 4 bids received - none for
complete lot. All rejected and
screw industry is being circularized
again at its own request.
Bolts, Miscellaneous
8, 103, 482
2,053,399
All sizes and kinds including drift
bolts, carriage and machine bolts, etc.
Material frozen pending plan of dis-
tribution.
79
Regraded Unclassified
Page 12
Quantity
Unit Cost
Cost to Govt.
6. Medical and Hospital Supplies
Dressings, first-aid packages
34,100,000
4,000,000
New declarations. Samples awaited.
About 1,600,000 are definitely a
commercial product. Army has withdrawn
3 million of original lot, probably
because of Red Cross manufacture.
Flask, with Cup
200,000
$ .33
66,000
Laboratory equipment. Samples
awaited.
Medicines and Antiseptics
5,800,000
This listing covers many declarations
recently declared by Army. It is made
up of 12 types of preparations of highly
technical nature, in great quantities.
All are on new declarations. Samples are
being obtained and will be tested to
determine quality.
80
Regraded Unclassifie
Page 13
Quantity
Unit Cost
Cost to Govt.
Petri Dishes, with Cover
230,000
$0.27
$ 62,100.
Laboratory dish for making
germ cultures. Sample awaited.
Sterilizers, new and used
1381
$300 (Av.)
495 037
Considered unsafe for medical
department use by Army. Nego-
tiations with manufacturer in
process.
Adhesive Plaster
154,000 rolls
184 800
Standard 12" wide rolls to fit
hospital hand reel. May be with-
drawn by Army for ordnance use/
Test Tubes, Glass
4,670,000
$ .03
140 100
Samples awaited.
Talc, (decontaminating Agent)
2900 Tons
100 000
Packaged. Region has been instructed
to dispose of this remainder by end of
this month. Any part unsold will probably
be destroyed.
81
Regraded Unclassifie
Page 14
Quantity
Unit Cost
Cost to Govt.
Suture, Silk, Dormal
1,865,142 Pkgs.
$ 140 066
Strands of threadlike silk used
for sewing after minor surgery,
largely external. Must be cata-
loged and are being offered to
other government hospital agencies.
Surgical and Dental Instruments, Medicines
and Supplies
1,846,000
Mostly non-standard, obsolete, or deteriorated.
Includes $52,228 in N. Y. Depot, $250,000 in
Louisville Depot, and $100,000 dental supplies
at Perry Point, Md. Bid invitations are being
prepared for Louisville stock. Disposal policy
for non-standard items is being formulated.
Suture, catgut
8,041,140
1,600,057
Strand of catgut used in surgery for
sewing after operations, largely internal.
Must be cataloged and are being offered to
other government hospital agencies.
82
Regraded Unclassified
Page 15
Quantity
Unit Cost
Cost to Govt.
Boxes, Tablet
320,000 cartons
$
.40
$128 000
500 boxes in a carton. Believed
to be World War I stock. Samples
awaited.
Floss, Silk
510,000 spools
173 400
Samples awaited
Bandages, muslin
134,584 Doz.
128 034
Samples awaited.
7. General Products
Cameras, Aircraft
96
307 386
Each camera has great variety of
collateral equipment. Obsolete
type. Physical inspection being
made. Informal negotiations with
Fairchild Camera Co. in process.
Drums, 55 gallon, used
95,273
2.50
237 182
130,000 declared by Army cannot be
located physically. Scattered through-
83
out country. Survey being made on condition
of drums.
Regraded Unclassified
Page 16
Quantity
Unit Cost
Cost to Govt.
Gasoline cans, 5 and 7½ Gal.
1,600,000
$ 2.00
$ 3,200,000
One million are "Jerricans" made
after German model with spout that
farmers like better than our regular
Blitz can. The 7½ gal. square cans
are suitable for shipping paint.
Circular letter to trade on "Jerricans"
going out this week. Sales of about
41,000 at an average price of $.77 report-
ed for last week
Anmunition Boxes, new,metal
103 373
$ 0.55
56 855
Hinged metal boxes for carrying
small arms ammunition into combat.
We have prospective purchaser for entire
quantity for over-counter sale as utility
box.
Crates, Wood, used
129 540
1.50
220 319
Have been used for packing guns.
Awaiting inspection and appraisal
report.
84
Regraded Unclassified
Page 17
Quantity
Unit Cost
Cost to Govt.
Batteries, dry cells and packs
$ 150 000
Overage for Army use. Quantity
increase from new declarations,
just received.
Platform Trucks, Steel, New
13,287
$ 75.
$ 996 525
Steel trucks on casters, designed
to move airplane engines undergoing
repairs. Bids are in at several
regions and sales are being made.
Diesel Engines, Complete
131
2,300,000
Being transferred to R.F.C.
8. Paper and Office Equipment
None
Total.
$ 56,539,793
:
85
Regraded Unclassified
SURPLUS USED CARS REPORT
For 7 days and Period Ended August 26, 1944
(Period Began January 1, 1944)
7 Days to August 26, 1944 PERIOD TO DATE
Total Used Cars Declared
63
3772
Less Declarations withdrawn
9
98
Less Loans to Other Federal Agencies
0
19
Less Transfers to Other Federal Agencies
2
11
554
671
Net Used Cars Declared for Sale
52
3101
Less Used Cars Sold
110
2315
Balance of Used Cars on hand
786
ANALYSIS OF INVENTORY
Inspected and ready for sale
612
Not inspected
174
786
ANALYSIS OF DISPOSAL ACTIVITY
INVENTORY
INVENTORY
DECLARATIONS
DISPOSALS
END OF PERIOD
CHANGE
Period Ending July lst
2864
2013
851
4 Weeks Ending July 29th
624
610
865
+ 14
4 Weeks Ending Aug. 26th
284
363
786
- 79
8
Regraded Unclassified
SURPLUS TRUO REPORT
For 7 Days and Period Ended August 26, 1944
(Period Began January 1, 1944)
7 Days to August 26, 1944
Perio 1 to Date
Total Trucks Declared
728
23926
Less Declarations withdrawn
15
973
Less Loans to Other Federal Agencies
0
145
Less Transfers to Other Federal Agencies 46
61
2804
3922
Net Trucks Declared for Sale
667
20004
Less Trucks Sold
697
16753
Balance of Trucks on hand
3251
ANALYSIS OF INVENTORY
Inspected and ready for sale
2043
Not Inspected
1208
3251
ANALYSIS OF DISPOSAL ACTIVITY
INVENTORY
INVENTORY
DECLARATIONS
DISPOSALS
END OF PERIOD
CHANGE
Period Ending July 1st
20311
10300
10011
4 Weeks Ending July 29th
1738
5308
6441
- 3570
4 Weeks Ending Aug. 26th
1877
5067
3251
- 3190
87
Regraded Unclassified
SURPLUS OTORCYCLE REPORT
For 7 Days and Period Ended, August 26, 1944
(Period Began January 1, 1944)
7 Days to August 26, 1944
Period to Date
Total Motorcycles Declared
1095
7582
Less Declarations withdrawn
o
1
Less Loans to Other Federal Agencies
o
0
Less Transfers to Other Federal Agencies
0
0
210
211
Net Motorcycles Declared for Sale
1095
7371
Less Motorcycles Sold
114
5104
Balance of Motorcycles on hand
2267
ANALYSIS OF INVENTORY
Inspected and ready for sale
1446
Not Inspected
821
2267
ANALYSIS OF DISPOSAL ACTIVITY
INVENTORY
INVENTORY
DECLARATIONS
DISPOSALS
END OF PERIOD
CHANGE
Period Ending July 1st
4518
4102
416
4 Weeks Ending July 29
1126
636
906
+ 490
4 Weeks Ending August 26
1938
577
2267
t 1361
Regraded Unclassified
89
OFFICE OF
FORVICTORY
TREASURY DEPARTMENT
BUY
UNITED
STATES
WAR
WASHINGTON 25
BONDS
AND
THE SECRETARY
STAMPS
August 29, 1944
MEMORANDUM TO THE SECRETARY
Attached is a copy of the Analysis
of Acquisitions, Disposals, Inventory Balance
of the twenty-five largest classifications
on our inventory. This covers the period
of August 1 to 15, 1944.
E. L. Olrich
Assistant to the Secretary
Attachment
Regraded Unclassified
90
REPORT NO. 15
ANALYSIS OF
1. ACQUISITIONS
2. DISPOSALS
3. INVENTORY BALANCE
(25 LARGEST CLASSES)
PERIOD OF AUGUST 1 TO 15, 1944
PREPARED BY
CONTROL & REPORTS BRANCH
AUGUST 26, 1944
DISTRIBUTION
MR. OLRICH
MR. ATCHESON
MR. FREY
'R. WIDMANN
MR. DUNCAN
Regraded Unclassified
91
ANALYSIS OF ACQUISITIONS
AUGUST 1 TO 15, 1944
(25 LARGEST CLASSES)
RELATIVE
APPRAISED
% OF
POSITION
DESCRIPTION
CLASS
VALUE
TOTAL
7/31
1
MOTOR VEHICLES
45
1
897
660
24.8
1
2
LEATHER
11
682 276
8.9
NR
3
END PRODUCTS OF METAL INDUSTRIES,
75
596
851
7.8
2
EXCEPT MACHINERY & EQUIPMENT
4
FABRICATED TEXTILE PRODUCTS, EXCEPT
69
568
164
7.4
7
APPAREL
5
FURNITURE & FIXTURES
54
535 166
7.0
3
6
APPAREL EXCEPT FOOTWEAR
5
353 064
4.6
4
7
FOOTWEAR
68
330
820
404
14
8
PROFESSIONAL & SCIENTIFIC INSTRUMENTS
58
323 969
4.2
24
& APPARATUS, EXCEPT INDICATING,
RECORDING AND CONTROLLING
9
MISCELLANEOUS END PRODUCTS OF
79
275787
3.6
15
MANUFACTURING INDUSTRIES
10
MISCELLANEOUS TRANSPORTATION EQUIPMENT
49
212 011
2.8
NR
11
CONSTRUCTION, MINING, EXCAVATING AND
36
157
889
2.1
11
RELATED MACHINERY
12
PARTS
94
137
565
1.8
5
13
TRACTORS
37
132
206
1.7
NR
14
FABRICATED METAL BASIC PRODUCTS
25
120
451
1.6
16
15
AIRCRAFT
42
119
917
1.6
NR
16
MISCELLANEOUS EQUIPMENT
59
106
287
1.4
NR
Regraded Unclassified
92
ANALYSIS OF ACQUISITIONS
AUGUST 1 TO 15, 1944
(25 LARGEST CLASSES)
RELATIVE
APPRAISED
x OF
POSITION
DESCRIPTION
CLASS
VALUE
TOTAL
7/31
17
RUBBER END PRODUCTS, NATURAL &
74
100 569
1.3
6
SYNTHETIC, EXCEPT FOOTWEAR &
CLOTHING
18
DRUGS AND MEDICINES
65
99 918
1.3
13
19
CHEMICALS
19
79 576
1.1
18
20
TEXTILE BASIC MANUFACTURES
15
71 947
.9
9
21
ELECTRICAL MACHINERY & APPARATUS
32
67 350
6
12
22
NONMETALLIC MINERAL BASIC
26
56 862
.7
25
PRODUCTS - CHIEFLY STRUCTURAL
23
FERRO AND NONFERROUS ADDITIVE ALLOYS
38
56 475
.7
NR
4
LIVE ANIMALS
01
56362
.7
NR
25
CONVERTED PAPER PRODUCTS AND PULP
72
53 306
.7
NR
GOODS
ALL OTHER
455 813
6.9
TOTAL ACQUISITIONS
7 648 261
100.
NR - NOT INCLUDED IN JULY 31 REPORT
Regraded Unclassified
93
ANALYSIS OF DISPOSALS
AUGUST 1 TO 15, 1944
(25 LARGEST CLASSES)
RELATIVE
APPRAISED
% OF
POSITION
DESCRIPTION
CLASS
VALUE
TOTAL
7/31
1
MOTOR VEHICLES
45
2 200 478
53.7
1
2
APPAREL, EXCEPT FOOTWEAR
67
428 604
10.5
2
3
FABRICATED TEXTILE PRODUCTS, EXCEPT
69
234334
5.7
5
APPAREL
4
FURNITURE & FIXTURES
54
190 306
4.6
9
5
LEATHER
11
157 660
3.9
8
6
END PRODUCTS OF METAL INDUSTRIES, EXCEPT
75
91215
2.2
4
MACHINERY & EQUIPMENT
7
NONMETALLIC MINERAL RASIC PRODUCTS -
27
64 509
1.6
24
CHIEFLY NONSTRUCTURAL
3
FABRICATED METAL BASIC PRODUCTS
25
63310
1.6
17
9
TEXTILE BASIC MANUFACTURES
15
59 978
1.4
7
10
LIVE ANIMALS
01
56967
1.3
NR
11
END PRODUCTS OF LEATHER, EXCEPT APPAREL,
71
47 869
1.2
16
FOOTWEAR AND LUGGAGE
12
TOILETRIES, COSMETICS, SOAP, AND HOUSE-
66
46 968
1.2
NR
HOLD CHEMICAL PREPARATIONS
13
RUBBER END PRODUCTS, NATURAL & SYNTHETIC,
74
43 193
1.1
NR
EXCEPT FOOTWEAR & CLOTHING
14
FINISHED WOOD PRODUCTS, EXCEPT FURNITURE &
76
40312
1.0
19
MILLWORK
15
CONSTRUCTION, MINING, EXCAVATING &
36
34564
.8
18
RELATED MACHINERY
Regraded Unclassified
94
ANALYSIS OF DISPOSALS
AUGUST 1 TO 15, 1944
(25 LARGEST CLASSES)
RELATIVE
APPRAISED
% OF
POSITION
DESCRIPTION
CLASS
VALUE
TOTAL
7/31
16
FOOTWEAR
68
32 362
.8
3
17
TRACTORS
37
28 350
.7
NR
18
MISCELLANEOUS BASIC MATERIALS
29
24331
.6
NR
19
GENERAL PURPOSE INDUSTRIAL MACHINERY
31
21 492
.5
15
AND EQUIPMENT
20
METALWORKING MACHINERY
34
21 338
.5
25
21
ELECTRICAL MACHINERY & APPARATUS
32
21 154
.5
NR
22
WOOD BASIC MATERIALS, EXCEPT PULPWOOD
13
15 312
.4
NR
23
SPECIAL INDUSTRY MACHINERY
33
12 625
.3
11
24
CHEMICALS
19
11 044
.3
NR
25 STEEL
22
10 089
.2
NR
ALL OTHER
137 359
3.4
TOTAL DISPOSALS
4 095 723
100.
NR - NOT INCLUDED IN JULY 31 REPORT
Regraded Unclassified
95
INVENTORY OF SURPLUS PROPERTY
25 LARGEST CLASSES
AUGUST 15, 1944
RELATIVE
APPRAISED
% OF
POSITION
DESCRIPTION
CLASS
VALUE
TOTAL
7/31
1
MOTOR VEHICLES
45
4294388
13.1
1
2
FURNITURE AND FIXTURES
54
2 989 901
9.1
2
3
LEATHER
11
2 319 854
7.1
5
4
FABRICATED TEXTILE PRODUCTS, EXCEPT
69
2 269 608
6.9
4
APPAREL
5
END PRODUCTS OF METAL INDUSTRIES, EXCEPT
75
2 180 724
6.7
6
MACHINERY AND EQUIPMENT
6
APPAREL, EXCEPT FOOTWEAR
67
2 109 091
6.4
3
7 FOOTWEAR
68
1 403 660
4.3
9
8
MISCELLANEOUS END PRODUCTS OF
79
1 395 544
4.3
8
MANUFACTURING INDUSTRIES
9
FABRICATED METAL BASIC PRODUCTS
25
1 197 894
3.7
7
10
END PRODUCTS OF LEATHER, EXCEPT
71
890
737
2.7
10
APPAREL, FOOTWEAR, & LUGGAGE
11
PROFESSIONAL & SCIENTIFIC INSTRUMENTS
58
887 802
2.7
12
& APPARATUS, EXCEPT INDICATING,
RECORDING AND CONTROLLING
12
RUBBER END PRODUCTS, NATURAL AND
74
726 780
2.2
11
SYNTHETIC, EXCEPT FOOTWEAR &
CLOTHING
13
CONSTRUCTION, MINING, EXCAVATING AND
36
718 641
2.2
13
RELATED MACHINERY
14
MISCELLANEOUS EQUIPMENT
59
598 865
1.8
18
15
AIRCRAFT
42
581030
1.8
19
Regraded Unclassified
96
INVENTORY OF SURPLUS PROPERTY
25 LARGEST CLASSES
AUGUST 15, 1944
RELATIVE
APPRAISED
POSITION
DESCRIPTION
CLASS
VALUE
TOTAL
7/31
16
SMALL ARMS & COMPONENTS
81
573 552
1.8
14
17
ELECTRICAL MACHINERY & APPARATUS
32
553 358
1.6
15
18
TEXTILE BASIC L'ANUFACTURES
15
522 994
1.6
17
19
CHEMICALS
19
402 811
1.2
24
20
DRUGS AND MEDICINES
65
371 585
1.1
22
21
PARTS
94
371 311
1.1
NR
22
MISCELLANEOUS ORDNANCE & ORDNANCE
89
354 530
1.1
23
MATERIEL
03
GENERAL PURPOSE INDUSTRIAL MACHINERY
31
348 455
1.1
21
& EQUIFMENT
24
PLUMBING & HEATING EQUIPMENT
51
331 411
1.0
16
25
METALWORKING MACHINERY
34
315 323
1.0
25
ALL OTHER
4 077 316
12.4
TOTAL INVENTORY
32 787 165
100.
NR - NOT INCLUDED IN JULY 31 REPORT
Regraded Unclassified
97
FORYICTORY
treasury DEPARTMENT
BUY
UNITED
STATES
WAR
BONDS
PROCUREMENT DIVISION
AND
STAMPS
WASHINGTON 25
OFFICE OF THE DIRECTOR
August 29, 1944
SECRET
MEMORANDUM TO THE SECRETARY:
There is submitted herewith the weekly
report of Lend-Lease purchases.
A requisition has been received for
4,000,000 square yards of translucent cloth
to be used for replacement of windows for
blitzed houses in the United Kingdom.
June Clifton E. Mack
Amt
Director of Procurement
Elocal
Regraded Unclassified
98
SECRET
LEND-LEASE
TREASURY DEPARTMENT, PROCUREMENT DIVISION
STATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND
DELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS
AS OF AUGUST 23, 1944
(In Millions of Dollars)
Administrative
Miscellaneous &
Total
U. K.
Russia
China
Expenses
Undistributed
Allocations
$5522.5
$2627.0
$2257.3
$133.9
$15.9
$488.4
(5522.2)
(2627.0)
(2257.3)
(133.9)
(15.9)
(488.1)
Requisitions
$ 149.9
$ 30.9
$ 45.4
$ 2.1
-
$ 71.5
in Purchase
( 167.6)
( 27.8)
( 66.1)
( .2)
-
( 73.5)
Requisitions not
$ 122.9
$ 56.5
$ 55.2
$ .1
-
$ 11.1
Cleared by W. P. B.
( 72.3)
( 30.9)
( 30.4)
(
.1)
-
( 10.9)
Obligations
$3925.3
$1961.4
$1607.4
$ 62.5
$13.4
$280.6
(Purchases)
(3909.2)
(1957.8)
(1597.5)
( 63.1)
(13.3)
(277.5)
Deliveries to Foreign
$2305.7
$1419.4
$ 812.5
$ 24.4
-
$ 49.4
Governments at U. S.
(2284.0)
(1414.2)
( 796.5)
( 24.1)
-
( 49.2)
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 16, 1944.
Regraded Unclassified
99
SECRET
EXPLANATION OF DIFFERENCE
The decrease in Obligations for China is a
result of refunds of overpayments by contractors.
Regraded Unclassified
100
APOSTOLIC DELEGATION
3339 Massachusetts Ave.
No. 581/42
August 29, 1944.
My dear Mr. Stettinius:
with reference to your es-
teemed letter of June 24, 1944, regarding the status of
Jews interned in Germany and other Axis-controlled
countries, I wish to inform you that I have received
the following report from the Secretariate of State:
On the twenty first of August the Apostolic Nun-
ciature in Bucharest sent a communication to the effect
that the Rumanian Government declared that it is dis-
posed to grant the request regarding the treatment of
Jews but the Government likewise points out that con-
centration camps for Jews are no longer in existence
there.
with sentiments of esteem and every best wish, I
remain
Sincerely yours,
/s/ A. G. CICOGNANI
Archbishop of Laodicea
Apostolic Delegate
The Honorable
Edward R. Stettinius, Jr.
Under Secretary of State
Department of State
Regraded Unclassified
EMBASSY OF THE UNITES STATES OF AMERICA
101
COMPIDENTIAL
No. 2053
Quite, Ecuader, August 29, 1944
Subject: Ecuaderan Response to Prepesal to Receive Refugee Children
from Hungary
The Honorable
The Secretary of State,
Washington.
Sir:
With reference to the Department's telegram No. 680 of
August 10, 1944, I have the honor to enclose a copy and translation
of an side memoire from the Ministry for Foreign Affairs concerning
its acceptance in principle of the preposal with respect to refugee
children from Hungary.
It will be noted that the Ecuaderan Government has once
again failed to indicate specifically the number of children which
it would be prepared to receive. However, a high official of the
Ecuadoran Foreign Office in conversation with an officer of the
Embassy teday stated that his Ministry was awaiting communications
in the matter from two other interested Government departments and
hoped to be able to provide the Embassy with a definite figure
within two or three days. The Embassy will, of course, cable this
information to the Department as seen as it is received.
Respectfully yours,
Enclesures:
1. Copy of side manaire.
2. Translation
COR:nt
Regraded Unclassified
102
Enclosure No. 2 to despatch No. 2053 of August 21, 1944, from
American Embassy, Quite, Ecuador.
TRANSLATIO
REPUBLIC OF ECUADOR
Ministry for Foreign Affairs
CONFIDENTIAL
Diplematic Department
ATTE MEMOIRE
The Ministry for Foreign Affairs has studied with
the greatest care and with real interest the contents of the
aide nemaire presented by the Embassy of the United States of
America on August 21.
Ecuader, which on July 21 last made known its inten-
tion of receiving immediately a small group of erphaned or
abandoned European children, takes pleasure in informing the
American Embassy that it would Le dispesed to emplify consider-
ably the pre-established quota for receiving children from Hungary
and France provided that the Bar Refugee Board would furnish the
necessary funds for the maintenance and education of those children.
Consequently, Equader will be able to determine exactly
the number of children that it will be disposed to receive when
the Far Refuges Beard directly or through the American Embassy
notifies it of the amount of money that it would be disposed to
furnish for each child.
The Ministry for Foreign Affairs agrees to the necessity
of considering jointly with other nations, should the case arise,
plans for the possible undertaking of a large scale invigration of
refugee children. But until it comes to such planning, which
perhaps world events of the near future will render vanecessary,
Equador is disposed to treat this matter with a very -
criterion as befite the humanitarian nature of the negotiations.
Quite, August 24, 1944
TRICOR:
Miss Chamosy (for the Sec'y), Abrahamson, Aksin, John, Drury, DuBois,
Friedman, Castom, Hedel, Laughlin, Lesser, Mannon, Marks, McCormack,
Peble, Sargoy, Standish, Weinstein, Cable-Control-Files
Regraded Unclassified
103
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, Localon
TO:
Secretary of State, Washington
DATED:
August 29, 1944
NUMBER: 7023
CONFIDENTIAL
We have not been able to identify Romy Coldmunts's address,
and the London office of the World Jewish Congress knows
neither the name nor the address. Clarification from you is
requested.
WINANT
Regraded Unclassified
104
MB-966
PLAIN
LONDON
DATED August 29, 1944
REC'D 3:10 p.m.
Secretary of State,
Washington.
7053, Twenty-ninth
At plenary session IGC August 15 United States
was unanimously elected to membership. New executive
committee director IGC now requests that he be in-
formed of name of person who will represent our gov-
erment on executive committee. He also suggests we
may wish to nominate a substitute in case our represent-
ative unable attend a particular meeting.
Instructions are requested.
WINANT
LMS
Regraded Unclassified
105
LC-996
Lisbon
Distribution of
true reading only by
Dated August 29, 1944
special arrangement.
(SECRET W)
Rec'd 4:30 p.m.
Secretary of State,
Washington.
2657, August 29, 1944 noon (SECTION ONE OF TWO)
Referring first paragraph agree that rescue
operations through Spain and Portugal now unnecessary
and unwise. Have communicated your decision all
private organizations concerned and they all state
that no further efforts will be made to rescue either
children or adults from France through Spain and are so
9A notifying their representatives. Reurtel 2331
WRB 81, August 24. THIS WRB 166 FOR PEHLE FROM DEXTER.
Answering your inquiry unfinished tasks before WRB
here are (A) evacuation Spanish Republican refugees from
Portugal on which mere beginning has been made. Reurtel
1819, June 24 and following telegrams same subject. Mexico
City and Washington both dilatory. If political situation
should change this task unnecessary. Should not take more
than three months if responses come quickly. Procedure
once established by Board might be left to consular section
in less than three months. (B) War Refugee Board should
help with evacuation to Palestine of Jowish refugees now
in Spain and Portugal. Indications now are that ship may
be available October. (c) WRB should probably be repre-
sented here as long as Lisbon remains headquarters for
Europe for privato American agencies. All agencies plan-
ning to leave but time for doparture will depend on when
they can enter France or Switzorland. (D) While Govern-
ment has foelings with Portugal if overy effort were mado within
next few wecks to evacuato as many as possible of refugees
now here and to sue that bost possible arrangements were
made for card of residue, In viow various notes sent
Portuguose Government at instigation of TRB, Board has
moral if not logal obligation to assist overy way possible.
NORWEB
EDA
Miss Chauncey (for the Sec'y), Abrahamson, Akzin, Boronstein, Cohn,
DuBois, Drury, Friedman, Gaston, Hodel, Laughlin, Losser, Mannon, Marks,
McCormack, Pehle, Sargoy, Standish, Weinstein, Cable Control Files
Regraded Unclassified
106
LC - 989
Lisbon
Distribution of
true reading only by
Dated August 29, 1944
special arrangement.
(SECRET W)
Rec'd 5:03 p.m.
Secretary of State,
Washington.
2657, August 29, noon (SECTION TWO)
(E) In viow Embassy's assurances to Portuguese
Government, arrangements should be mado for any Hungarian
Jewish refugees who arrive hero, Very doubtful their
arrival however.
Believe all above could be accomplished or put
in trains or that they could bo carod for by regular
diplomatic staff within three months possibly two.
Suggest that Dexter and Widon could at ond of that
period or possibly before (one) go to France represent-
ing WRB if Mann's negotiations admit that possibility;
(two) accept any assignment clsewhere which RB or
Department makos; (three) if Unitarian Service Commit-
teo desires thoir services hero or elsowhere they could
return to provious employment; (four) if no longor
needed in Europe by WRB, Department or USC they be
returned home and rosign from service. Urgo once more
importance of American representativo in France whother
under WRB or other auspices as soon as possible to pre-
vont duplication of refugee situation that occurred in
Italy. Hope Mann's trip England will rosult in staff
going there soon.
(END OF MESS..GE)
NORWEB
WFS
EH
Miss Chauncey (for the Sec'y), Abrahamson, Akzin, Cohn, DuBois,
Drury, Friedman, Gaston, Hodel, Laughlin, Lessor, Mannon, Marks,
McCormack, Puhle, Sargoy, Standish, Weinstein, Cable Control Files
Regraded Unclassified
107
MAE-975
Lisbon
Distribution of true
reading only by special
Dated August 29, 1944
arrangement. (SECRET W)
Rec'd 5:20 p.m.
Secretary of States
Washington.
2659, August 29, 5 p.m.
Sending note Portuguese Foreign Office embodying
substance DEPTEL 2332, August 24, This WRB 168. Also
making necessary detailed arrangements consular Section
and advising private agencies here.
NORWEB
THE
EEC
Regraded Unclassified
108
HIS - 105
PLAIN
Lisbon
Dated August 29, 1944
Rec'd 12:53 a.m., 30th
Secretary of State,
Washington
2662, Twenty-ninth, 7 p.m.
FOR LEAVITT FROM SCHWARTZ JDC 59 WRB 169
View your cable and similar message from WRB
we have instructed our representatives Spain discontinus
further efforts to bring out either adults or
children from France through Spain. The are in agreement
with the decisions taken in this matter. Are now
statentrating our efferts transport to Palestine visa
holders in Iberian Peninsula and Tangiers, especially
the children and young people who arrived in recent
months from France. In this connection we have
possibility of Spanish ship to Palestine sometime
in September concerning which will advise more fully
next days also continue negotiations for Portuguese
steamer which will transport balance Palestine certificate
holders these areas and make possible complete
evacuation all Palestine visa holders. There are
in Bergenbelsen about 155 Sephardic Jews having
Spanish passports whose entry into Spain has been
promised by the Spanish Government and for whom
we understand exit permits are now available. The
believe it of utmost importance that American
Embassy, Madrid, intervens vigerously with Spanish
Government to effect release of these people and
their advission into Spain. In order de this it
may be necessary give guarantee to Spanish Government
that this group will be removed from Spain within
reasenble time. No urge you undertake all necessary
steps your end. He doing everything possible from
here.
NORWEB
EEC
Regraded Unclassified
109
CSS-55
Lisbon
Distribution of true
reading only by special
Dated
August 29, 1944
arrangement. (SECRET W)
Rec'd
Secretary of State,
9:35 p.m.
Washington,
2663, August 29, 7 p.m.
First consignment of food packages for Yugoslavian
labor camps has been sent through Interoross from Switzer-
land and further shipments are to be expected. This is
last paragraph our No. 42, August 3. This is WRB 170
FROM SCHWARTZ FOR LEAVITT BDC 60.
Penultimate paragraph follows. 22,700,000 Chinese
dollars were sent for July: 16,300,000 in June and
8
11,800,000 in May. July budget was 30,000,000 the equiva-
lent of approximately $34,000.
NORWEB
Regraded Unclassified
110
FMH
August 29, 1944
This telegram must be
paraphrased before being
2 p.m.
communicated to anyone
other than a Government
agency. (RESTRICTED)
AMCONSUL
JOHANNESBURG
274
The following is from War Refugee Board in refer-
ence to your airgram A-27 of July 25 explaining interest
of South African Red Cross and South African Jewish War
Rolief in efforts of Board for relief of Jews in
Rumania.
Kindly inform the above organizations that the fol-
lowing are among the Board's activities on behalf of Jews
in Rimania.
(1) Organizing, arranging and implementing programs
of private agencies for the relief of Jews;
(2) Encouraging rescue programs, including trans-
portation of Jews to safe areas and finding of refuge
havens for war's duration;
(3) Advancing measures designed to induce the
Rumanian Government to cease further persecution of Jews.
The Board will be pleased to receive the cooperation
of the above named organizations, if they are prepared
to cooperate with its pregram in any way.
HULL
(GLW)
WRB:MMV:KG
8/29/44
BC
SE
Regraded Unclassified
111
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
August 29, 1944
NUMBER:
2978
CONFIDENTIAL
Reference is made to Department's 2877 of August 21,
WRB 122.
Please inform Swiss Government that Ireland extended
in principle its offer of refuge to 500 children to cover
children from Hungary as well as those from France. Like-
wise Honduras extended its offer of refuge to 50 children
to wever children from Hungary.
If you believe that it will be helpful, the above
information may be transmitted to Hungarian authorities
through official Swiss or Intercross channels.
This is WRB Bern Cable No. 151.
Repeated to Amembassy, London, as No. 6920 for informa-
tion of Ambassador and for transmission to IGC.
HULL
Regraded Unclassified
112
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
August 29, 1944
NUMBER:
2979
CONFIDENTIAL
Cable to McClelland.
Reference is made to your 5068 paragraph two. We
assume that your reference to Italian Slovakian rescue
plans refers to your 4666 of July 21 and 5079 of August
7. If assumption incorrect, please clarify.
We approve of your support (including financial aid)
of project described in your 4666 and you are authorized
to continue such support at your discretion.
Regarding your 5079 please refer to Department's
2817 of August 16.
This is WRB Bern Cable No. 150.
HULL
Regraded Unclassified
113
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
August 29, 1944
NUMBER:
2981
CONFIDENTIAL
Please transmit the following message to Sternbuch:
QUOTE Please request Intercross to call attention
its Delegation, Hungary, to 500 children beneficiaries
of Tangier visas awaiting evacuation. Names and addresses
known to Genne Reichman, Tangier, and presumably to
Spanish Legation, Budapest. Vaad Hahatzala Emergency
Committee. UNQUOTE
THIS IS WRB CABLE TO BERN NO. 149.
HULL
Regraded Unclassified
114
CABLE TO MINISTER HARRISON, BERN, FOR MCCLELLAND FROM
WAR REFUGEE BOARD
Please deliver the following message to Saly Mayer from
M. A. Leavitt, American Jewish Joint Distribution Committee:
QUOTE PLEASE CONTACT MEXICAN LEGATION BERN REGARDING
INSTRUCTIONS THEY RECEIVED FROM XICAN GOVERNMENT TO OBTAIN
FROM YOU LIST OF 400 OUTSTANDING HUNGARIAN JEWISH COMMUNAL
LEADERS, RABBIS ETC. TO WHOM DOCUMENTS WILL BE ISSUED BY
SWEDISH LEGATION BUDAPEST ON BEHALF MEXICAN GOVERNMENT STOP
THESE DOCUMENTS WILL ENTITLE THESE HUNGARIAN JEWS TO PROTECTION
OF SWEDEN AS PROTECTING POWER FOR MEXICAN NATIONALS STOP
ASSUME YOU WILL COMPILE LIST OF OUTSTANDING PERSONALITIES
BASIS YOUR OWN KNOWLEDGE AND AFTER CONSULTATION WITH WHOMEVER
YOU BELIEVE DESIRABLE UNQUOTE
THIS IS WRB GABLE TO BERN NO. 152
3:15 p.m.
August 29; 1944
RDrury 8/24/44
Regraded Unclassified
115
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, Montevideo
TO:
Secretary of State, Washington
DATED:
August 29, 1944
NUMBER:
817
CONFIDENTIAL
Reference is made herewith to Department's Airgram
of April 15 and Embassy's cable of May 6, No. 427.
The Government of Uruguay has agreed formerly to the
admittance of 500 refugee children. By airmail We are
sending details.
DAWSON
DCR:VAG:MIM
9/1/44
Regraded Unclassified
116
EMBASSY OF THE
UNITED STATES OF AMERICA
CONFIDENTIAL
Montevideo, Uruguay
August 29, 1944
No. 4743
Subject: Uruguay agrees to Admit 500 Refugee Children from
Europe.
The Honorable
The Secretary of State,
Washington.
Sir:
In confirmation of the Embassy's telegram no. 817 of August
29,11a.m., 1944, I have the honor to transmit herewith a copy
1/
of the note of the Minister for Foreign Affairs, in which he
states that authorization will be granted for the issuance of
visas to 500 refugee children from Europe, in accordance with
the conditions set forth in this Embassy's memorandum of May 4,
2/
1944, (copy enclosed), which as based on the Department's oir-
cular airgram of April 15, 7 p.m., 1944.
Respectfully yours,
For the Ambassador:
Edward J. Sparks
I Secretary of Embassy
Enclosures:
1. Note from Minister for Foreign Affairs dated
August 28, 1944.
2. Embassy's note to Foreign Office dated May 4,
1944.
848
EJS:led
(To Department in single
copy for Osalid)
Unclassified
117
Enclosure no. 2 to despatch no. 4743
dated August 29, 1944 from American
Embassy, Montevideo, Uruguay.
MEMORANDUM
CONFIDENTIAL
The Department of State has authorized the consular
officers of the United States in Switzerland to issue up
to 4,000 immigration visas to refugee children up to
sixteen years of age, under exceptionally liberal condi-
tions. The purpose of this authorization is to facili-
tate the escape to Seitzerland of orphaned or abandoned
children by giving assurances to the Swiss Government
that these children will not remain in Qwitzerland after
the termination of hostilities in Europe. The authoriza-
tion contains provisions for the continued renewal of
the visas until such time as adequate transportation
facilities to the United States become available.
If there are private agencies in Uruguay willing
and able to undertake a program for the care of refugee
children, the War Refugee Board is confident that it
can make arrangements to provide those agencies with
adequate funds for the maintenance, education and
welfare of as many children as the Government of Uruguay
will be willing to admit. Should it prove necessary,
funds would undoubtedly be available to meet transporta-
tion expenses from Switzerland to Uruguay. It is con-
servatively estimated that there are in France alone
eight to ten thousand abandoned or orphaned refugee
children.
If the Uruguayan Government should be willing to
take similar action it is requested that it give assur-
ances to the Swiss Government, through its diplomatic
mission in Bern, that it will accept up to a fixed number
of refugee children in a manner similar to that of the
Government of the United States. It is further requested
that the Ministry of Foreign Affairs authorize its Chief
of Mission in Bern to issue the appropriate number of
immigration visas and to maintain their validity until
suitable transportation facilities from Switzerland
to Uruguay become available. The special representative
of the War Refugee Board attached to the American Lega-
tion in Bern will be glad to cooperate with the Uruguayan
diplomatic and consular officers in this as well as in
all other refugee matters.
Montavideo, May 4, 1944.
EJS:led
Regraded Unclassified
NOT TO BE RE-IRANS! PATER
RECEIVING
COPY NO.
11
OFF
10g
118
SEGRET
OPTEL No. 282
YAME
Information received up to 10 a.m., 29th August, 1944.
BE
1. NAVAL
On 27th/28th a French Destroyer, one of H.M. Frigates and
M.T.B.'s attacked convoy of two coasters, three trawlers and some
Roboats off CAP D' ANTIFER. The two coasters were sunk and two
other ships damaged.
BRITTANY. FINISTERRE, Reported that LOCTUDY, BENODET
and CONCARNEAU are clear of enemy and that the Germans are concen-
trating in the CROZON Peninsula.
2, MILITARY
FRANCE. Continued good progress by U.S. forces south and
east of PARIS where they are now closing up to MARNE on the 50 mile
stretch between CHATEAU THIERRY and PARIS. Advanced elements are
across MARNE and on line of AISNE from SO ISSON eastwards, while
other columns are within 20 miles of CHALONS SUR MARNE, U.K. and
Canadian forces are strengthening and expanding their bridgeheads
over the SEINE. In the coastal sector Canadians are pushing the
Germans into the great loops of the SEINE and have captured ROUTCI
and QUILLEBEUF. U.S. forces are making some headway at BREST
against determined opposition.
SOUTHERN FRANCE. Forces are working up the RHONE Valley.
They have already cleared east bank as far as DONZERE. Slight
expansion of bridgehead to north and east where line has reached
River VAR.
ITALY. Slight progress in ADRIATIC Sector. Patrols have
reached outskirts of URBINO, both from east and south,
RUSSIA. Russians report progress S.E. of VALKA and have
captured OSTROW-MAZOWIECKA, 30 miles S.S.W. LOMZA. In the south
they have advanced further northwest of ADJUD, have captured BRAILA
and completed the liquidation of the remaining German forces sur-
rounded S.W. of KISHINEV. Ships and landing units of the Black
Sea Fleet have forced the DANUBE and captured TULCEA and the Naval
Base of SULINA.
3. AIR OPERATIONS
WESTERN FRONT. 28th, Bomber Command aircraft dropped
471 tons on 12 flying bomb launching sites; 115 on coastal battery
near ST. BRIEUC and 99 on shipping at BREST. Bombing was concen-
trated,
U.S. Fighters attacked railways and roads in North East
FRANCE, the Low Countries and near Franco-German boundary des-
troying or damaging 377 locomotives, 1,847 railway wagons and 298
other vehicles.
A.E.A.F. medium bombers dropped 285 tons on four ammuni-
tion and fuel dumps in North East FRANCE and 106 on Duclair Ferry
near ROUEN. 595 fighters attacked German transport destroying many
motor vehicles and several tanks,
German casualties 29, 1, 8. Ours, 1 medium bomber, 24
fighters.
28th/29th. 66 aircraft despatched including 35 Mosquitoer
ESSEN. All returned.
ITALY AND SOUTHERN FRANCE. 26th/27th. Bombers dropped
207 tons on troop concentrations PESARO area and 68 light bombers
attacked communications Northern Italy.
27th. 189 medium bombers attacked gun positions on
RATENNEAU Island and 403 aircraft attacked communications and de-
fensive positions Northern Italy. A 7,000 ton ship at IMPERIA was
set on fire. 28th. 89 heavy bombers (6 missing) dropped 74 tons oz.
Avisio viaduct and 152 on Ora railway bridge, Brenner Pass.
CENTRAL EUROPE. 28th. Heavy bombers from Mediterranean
dropped 357 tons on oil refinery near VIENNA, 218 on oil refinery
N.W. BUDAPEST. 172 on SZOLNOK railway bridge and 226 on
rHilway centrel
Regraded Unclassified
119
Farm
252
August 30, 1944
JhS
MEMORANDUM FOR SECRETARY MORGENTHAU
From: Assistant Secretary Sullivan
Commissioner Nunan
We have conferred with several people in the Treasury and
in the Bureau and we are all in accord that no satisfactory speech
or statement can be written in answer to any possible charges that
Governor Dewey can make against the Treasury on the tax front until
we have read the charges.
However, we have scanned the possibilities and it appears
to us that if charges are made they will involve:
1. Excess profits taxes,
2. Corporate income taxes,
3. Renegotiation,
4. Individual tax rates, exemptions and credits,
5. The failure to enact a Federal sales tax,
6. Excise taxes, and
7. Complications of the form filed in March of 1944.
Accordingly, we have assembled the pertinent statistics and
arguments on each of these points 80 that a defense and explanation
of those items of which Governor Dewey is critical can be readily
assembled.
It is our opinion that the general public is unaware of the
tremendous job that has been done in the administration of taxes in the
last five years--a period in which we have collected more taxes than
had been collected in the previous 150 years. We believe the public
should be told of the tremendous increases in returns and revenue yields
in this Five-year period. We also believe that the public should be
congratulated upon their splendid response to the fiscal demands of the
country. Accordingly, we are attaching 3 proposed opening paragraph for
any statement to be made in response to Governor Dewey's criticism of
the administration of taxes.
Attachments
Regraded Unclassified
120
Excess-Profits Tax
An objective which has had the full sympathy of all parties
concerned with tax matters is the prevention of excessive war profits.
Government policy in this respect has been based on a number of
social and economic considerations. Of prime importance has been
fairness in the distribution of wartime sacrifices. This had to
be considered in conjunction with the need for adequate incentives
for increased production and for effective measures to combat
inflation.
In this war, D.S. in the first World Wer, the chief instrument
for preventing excessive profits has been the excess-profits tax
on corporations. Enacted under the Second Revenue Act of 1940,
it provided for 2. tax on income in excess of 2. credit based either
on invested capital or average earnings during the 1936-39 base
period.
The original rates were graduated from 25 to 50 percent, but
the tax was subsequently increased to a flat rate of 90 percent in
the 1942 Act and 95 percent in the 1943 Act. However, under these
latter rates, 2. postwar credit equal to 10 percent of the excess-
profits tax has been allowed. In addition, a limit was placed on
the excess-profits tax so that, when added to the normal tax and
surtax, the combined liability was not to exceed 80 percent of cor-
porate surtax net income. Abnormal situations have been recognized
by various relief provisions, and a method of averaging income and
excess profits has been provided through the two-year carry-backs
and carry-forwards.
It cannot be said that the excess-profits tax has been wholly
successful in recapturing excessive war profits. While its yield
is substantial - 1944 liabilities are estimated at $9 billion after
the 10-percent postwar refund -, corporate profits after taxes have
increased enormously. Comparing the calender year 1943 with 1939,
the excess-profits tax, together with the additional normal tax and
surtex on corporations, has recovered about two-thirds of the increase
in corporate profits before taxes (but after renegotiation of war
contracts). This one-third of additional profits which corporations
have been allowed to keep is one and one-half times as large as the
1939 level after taxes.
Aside from the reduction of excessive corporate profits, the
excess-profits tax has played a key role in the integrated program
to finance the war without danger of inflation. The heavy taxation
of profits is essential to the maintenance of price ceilings and
wage and salary stabilization,
Treasury Department, Division of Tax Research
August 26, 1944
Regraded Unclassified
121
Corporation Income Taxes
The joint effect of rate increases and the enormous expansion
of corporate profits boosted corporation income tax liabilities from
$1.2 billion in 1940 to an estimated $4.4 billion in 1944.
Substantial reliance on increases in the corporate normal tax
and surtax was necessary because of the unavoidable imperfections
in the excess-profits tax law. At best, it is extremely difficult
to single out excess profits and war profits by legal definition.
The corporate normal tax and surtax afforded an instrument for tapping
war profits that were not defined 2.8 excess profits in our tax law.
Furthermore, not all excess profits can be taken by taxes without
impairing managerial incentives. Additional income taxes offered
assurance that all corporations which had benefited from the war
would make en additional tax contribution.
At the some time Treasury policy regarding corporate income
taxes has been tempered by the necessity for keeping corporations
in a sound financial condition for the postwar conversion. That
this objective has been achieved is indicated by the large amounts
of liquid assets which corporations have been able to accumulate
during the war.
Prior to 1940, the corporation income tax was levied at
19 percent when net incomes exceeded $25,000 with lower rates for
small corporations. The normal rate vas raised to 24 percent in
1940 and stabilized at that level. In the following years, however,
increases in the corporation income tax came by way of a surtax in
lieu of a further increase in the 24 percent normal tax which would
have accrued to the advantage of holders of partially tax-exempt
securities. The present combined normal tax and surtax on net
incomes over $50,000 of 40 percent was enacted in the 1942 Act.
Treasury Department, Division of Tax Research
August 26, 1944
Regraded Unclassified
122
Renegotiation
The belief that excessive profits should not be made on war con-
tracts found Congressional expression in the profit-limitation pro-
visions of the Vinson-Trammell Act of 1934. These provisions were
suspended, however, upon enactment of the excess-profite tax in 1940.
Its suspension was motivated by the belief that the Act was discrimi-
natory in its coverage, that it was based on an arbitrary formula
for reasonable profits, and that it created an impediment to prompt
placement of contracts.
The suspension of this Act and its replacement by the excess-
profits tax could only partially cope with the problem of securing
reasonable prices on war contracts, particularly in view of the
authorization given to the military establishment in 1940 to negotiate
contracts rather than to award them by competitive bidding. At that
time, the dominating consideration was speed rather than cost.
Accordingly, in early 1942 the War Department instituted a procedure
for renegotiation of contracts which was embodied in subsequent
legislation applicable to contracts and subcontracts entered into
by the Governmental procurement agencies.
Estimated renegotiation recoveries during 1942-44 on goods
already delivered at the time of renegotiation amount to $4 billion.
In addition, renegotiation has reduced the prices of goods yet to
be delivered at the time of renegotiation - an effect which is at
least as important as recoveries of payments for goods already de-
livered, and has resulted in lower prices in new contracts. Therefore,
even though a substantial portion of renegotiation recoveries would
have been taken by taxes, renegotiation has reduced excessive profits
more than taxes could have and has achieved a significant lowering
of contract prices.
Treasury Department, Division of Tax Research
August 26, 1944
Regraded Unclassified
123
Individual Income Tax
Expansion of the individual income tax accounted for one-half
($17,280 million) of the total increase ($34,800 million) in
internal revenue collections from the fiscal year 1940 to the
fiscal year 1944. In the latter year individual income taxes
yielded $18,260 million. Under the stimulus of lowered exemptions
and expanded incomes, the number of taxpayers increased more than
tenfeld from 1940 to 1944.
Despite the unprecedented growth of the individual income tax,
collections failed to keep pace with the wartime growth in individ-
ual income. Even after deduction of all personal taxes, income
payments to individuals rose from $68 billion in the calendar year
1939 to $124 billion in 1943. Net savings during this period rose
from $6 billion to $33 billion. These figures indicate, first,
that the wartime increases in the individual income tax were, in
the aggregate, well within the limits of ability to pay and, second,
that these increases, while centributing heavily to the stabilization
program, left greatly expanded spending power in the hands of consumers.
The heavy reliance on the individual income tax in wartime is
an acknewledgement of its ability to raise huge revenues in a way
that meets the demands of equity and reduces inflationary pressure.
Its personal exemptions protect minimum living standards and
recognize differences in family responsibilities. The combination
of exemptions and progressive rates has distributed financial burdens
according to ability to pay without impairing the incentives to exert
a maximum effort in war preduction. Strengthened by the shift to
current payment, the income tax has been effective in withdrawing
vast sums that might otherwise have been spent in an inflationary
way.
Personal exemptions were pregressively reduced from a level of
$2,500 for married couples and $1,000 for single persons in 1939
to a uniform $500 exemption for the taxpayer, for his spouse, and
for each of his dependents under the Individual Income Tax Act of
1944. The credit for dependents, formerly $400, was reduced to $350
in 1942, and was replaced by the uniform $500 exemption in 1944.
The sharp reduction in the level of exemptions during the war provided
the broad tax base needed to raise large amounts of revenue and to
make the income tar more effective as a stabilization measure. The
changes in the exemption system in 1944 also contributed substantially
to the simplification of the income tax.
Regraded Unclassified
124
- 2 -
Rates were sharply and steadily increased during the defense and
war periods, from a range of 4 percent to 75 percent in 1939 to a range
of 23 percent to 94 percent in 1944. In 1939 the normal tax was 4 per-
cent, and the surtax began at 6 percent after an exemption of $4,000
of surtax net income. In 1944 the normal tax had become a special tax
of 3 percent, and the surtax began at 20 percent on the first dollar
of surtex net income. The high wartime individual income tax rates,
like the high corporation rates, limited the possibilities of war
profiteering. The very high rates on the upper brackets have ample
justification in circumstances where starting rates of 23 percent
are needed to raise the requisite revenue.
The 3-percent normal tax now in effect is & substitute for the
wartime Victory tax, which had been added to the regular income tax
by the Revenue Act of 1942. It was in effect only for the income
year 1943 and applied at a rate of 3.75 percent to single persons
and 3 percent to married persons (less .1 percent for each dependent)
on income in excess of $624 per income recipient. It was repealed
by the Individual Income Tax Act of 1944.
The great wartime expansion of the individual income tax called
for a revision of payment methods and for simplification. The Treasury
proposed current collection at source as early as 1941, and this device
was applied to wages and salaries for Victory tax purposes by the
Revenue Act of 1942 and extended to the regular income tax by the
Current Tax Payment Act of 1943. By this means a convenient method
of payment was provided for the millions of wage-earners accustomed
to weekly and monthly budgets. In addition, the Current Tax Payment
Act provided for current payment of liabilities on incomes not subject
to withholding, by means of current quarterly payments. The individual
income tax was thus strengthened as an instrument of var finance not
only because it vas made easier to pay but because the withdrawal of
purchasing power was accelerated and the tax was made more immediately
responsive to changes in the national income.
As the individual income tax grew to embrace approximately 50
million taxpayers, it became imperative to simplify tax compliance.
Several simplifying changes were made in 1942 and 1943. Through
the cooperative work of the Treasury and the Congressional Committees,
a plan for further simplification was developed and put into effect
through the Individual Income Tax Act of 1944. This act set up a
system under which 30 million wage and salary earners can use their
withholding receipt as & simple tax return, with the collector of
internal revenue computing their tax and either issuing an assessment
or a refund; 10 million taxpayers can file a simple return and compute
their tax from a tax table; and the remaining 10 million taxpayers can
use substantially simplified returns.
Treasury Department, Division of Tax Research
August 26, 1944
Regraded Unclassified
125
Excise Taxes
In the excise tax field, the Treasury has attempted to steer a
course which would contribute to the wartime revenue goal and at
the same time be conducive to an efficiently operated war economy.
Successive upward revisions of rates in each year's revenue act
and the introduction of several new excises boosted the yield of
these taxes from $1,870 million in the fiscal year 1940, to $2,380
million in 1941, $3,120 million in 1942, $3,790 million in 1943. and
$4,460 million in 1944.
In addition to raising substantial amounts of much needed
revenue, the new excise taxes were first designed to discourage the
consumption by civilians of goods requiring materials and facilities
needed for war production. Accordingly, the Revenue Act of 1941
increased the taxes on tires and tubes, radio sets and parts, and
mechanical refrigerators, and imposed new imposts on electric, gas
and oil appliances, photographic apparatus, and many other com-
modities. As production and consumption became subject to more
direct controls, additional excise taxes were selected on the basis
of their effects on the cost of living, business costs, and other
phases of the wartine stabilisation program. These considerations
were found to permit a gradual strengthening of such excises as the
liquor, tobacco, and admissions taxes and the retail levies on
cosmetics, furs, jewelry, and luggage, which applied in only minor
respects to commodities which are necessities of life and which
entered into business and farm costs to only an insignificant extent.
These same considerations entered into the Treasury's policy of
opposing a general sales tax.
Treasury Department, Division of Tax Research
August 26, 1944
Regraded Unclassified
126
Federal Sales Tax
The Treasury has consistently opposed enactment of a Federal
sales tax. This policy was dictated by several considerations.
In the first place, it was believed that the imposition of a
substantial sales tax would run the risk of upsetting the Government's
stabilization program. General commodity taxation and price and
wage controls do not 60 together. A sales tax would have raised
living costs at a time when vigorous action was being taken along
many fronts to keep prices down. It would most certainly have been
the signal for higher wages and farm prices which, if allowed, would
have resulted in large additional costs to the Government end in-
creases in the cost of living over and beyond the amount of the tax.
The Treasury's position on this matter was emphatically supported
by the Office of Price Administration and the Office of Economic
Stabilization.
Secondly, it would have encroached upon the living standards of
the many low-income consumers who have not shared in the wartime
expansion of incomes. Applying 2.6 it would to the bulk of consumer
purchases, it would not have given these groups any real choice, such
0.8 is given them under selective excises, between paying the tax and
escaping it by cutting their taxable purchases.
Thirdly, 2. Federal sales tax would have entailed a disproportionate
administrative and compliance effort, particularly if en attempt were
made to exempt food or otherwise to give the lower income earners some
relief from the harsh effects of a general sales tax.
Analysis of the revenue potentialities of B. Federal retail sales
tax indicated that the exemption of necessities would have reduced
the yield substantially. It was estimated that & 10-percent levy, a
rate over three times as high as the rate in force in any State,
would have raised about $6 billion at 1944 levels of business,
assuming that there were no exemptions for necessities. If food,
medicine, and clothing were exempted, the yield would have been
cut to $2.6 billion. Of that amount, however, $1.2 billion would
have come from goods and services already subject to Federal excise
texes. Moreover, a substantial part of the remainder would have
come from the sale of equipment and materials used in business and
entering into business operating costs.
Treasury Department, Division of Tax Research
August 26, 1944
Regraded Unclassified
127
Internal Revenue Collections, Fiscal Years 1940-1944
: Corporate : Excess : Individual: Excise : Employ- : All
:
Total
Fiscal
: income
: profits
:
income
:
taxes
:
ment
: other :
Collections
year
: taxes
:
taxes
:
taxes
:
: taxes
:
:
(Millions of Dollars)
1940
1,121
---
982
1,867
834
520
5,323
1941
1,852
164
1,418
2,381
926
611
7,352
1942
3,069
1,618
3,263
3,123
1,185
771
13,030
1943
4,521
5,064
6,630
3,795
1,499
861
22,369
1944
5,284
9,345
18,261
4,461
1,738
1,029
40,120
Percentage Distribution
1940
21.1
-
18.4
35.0
15.7
9.8
100.0
1
25.2
2.2
19.3
32.4
12.6
8.3
100.0
1942
23.6
12.4
25.0
24.0
9.1
5.9
100.0
1943
20.2
22.7
29.6
17.0
6.7
3.8
100.0
1944
13.2
23.3
45.5
11.1
4.3
2.6
100.0
Treasury Department, Division of Tax Research
August 26, 1944
Source:
Bulletin, Treasury Department July - August 1944, Annual Reports Commissioner
of Internal Revenue.
HK
Regraded Unclassified
128
MEMORANDUM
September 2,1944.
MR. SULLIVAN:
It appears to me if the Republican candidate for President
were to alk and take the Treasury Department or its policies to task
such subject would be along the line wherein he first of all would
criticize the tremendous increase in revenue and the resultant spending
thereof, that he would further say that our tax system was archaic ,
cumbersome and overlapping. As one of the reasons supporting this
he would point to the forms used last March and the confusion existing
among the taxpayers at that time.
As to the first, it does not appear to me that this is a
matter of whole concern to the Treasury, but rather a matter for
Congress. As to the second, I am pondering whether it would not be
a good thing if the Secretary should issue a statement saying he has
asked the committee studying post war taxes to a lso make a further
study of proposed changes in the tax law which might simplify same.
(When I say "pondering" such a suggestion, I do so because such a move
on the part of the Secretary might be an indication that he also thinks
our tax system is burdensome.) As to the last, namely the criticism
against the form, the answer to this would be in my opinion, that it
was necessary because of the transition from the former system of pay-
ing taxes to the "pay-as-you-go" system, and as proof of this we might
point to the simplified forms now being issued by the Bureau.
If, as suggested by r.Blough at the recent conference,
Professor Crum is advising the Republican candidate, ..Blough might
possibly know the Professor's likes and dislikes regarding the
present set-up and anticipate what the Professor might suggest.
Regraded Unclassified
129
Speaking in the City of
on the
day of
1944, the Republican candidate for the Presidency
made certain charges against this administration based upon its
administration of Internal Revenue taxes. It is apparent from the
candidate's speech that he has either been deliberately misinformed
or is making these charges on the basis of the same sort of rumor
which led him to criticize the great international conference at
Dumbarton Oaks before that conference had ever met. It is obvious
that the Republican candidate is not even slightly aware of the
magnitude of current tax problems.
In the five years from July 1, 1939 to July 1, 1944, the
Internal Revenue Bureau collected more than $87 billion. Its total
collections in the previous 150 years were less than $84 billion.
The largest amount collected in any one year previous to 1939 was
in 1938 when our collections totalled $5,854 million. In the year
just closed, the Internal Revenue Bureau collected $40,121 million.
The largest number of returns filed in any one year prior to
1939. was 8,097,254
filed in the year 1923
This
year there were filed 44,609,000 individual and corporate income
and profits tax returns. A fair appraisal of the efficiency and
the economy with which the Bureau of Internal Revenue has administered
taxes can be found in the fact that while the number of returns in-
creased eight-fold and the amount of collections had increased eight-
fold, the total personnel of the Bureau of Internal Revenue was only
doubled. On July 1, 1939, the Bureau employed 22,623 people. On
Regraded Unclassified
130
- 2 -
the first of July 1944, it employed 46,755 people.
This tremendous job that the Bureau of Internal Revenue has
done during the last five years of the administration of President
Roosevelt was possible because of the truly fine response of the
American people to the fiscal requirements of the nation. The
American people knew in what jeopardy our country had been placed
by the threats of the aggressors. The American people knew how
much was at stake and they realized that no price was too great to
pay to defend American liberty and American freedom. Through the
acceptance of necessarily great tax burdens and through the volun-
tary purchase of astronomical amounts of War Savings Bonds, they
demonstrated the united and whole-hearted support of the Commander-
in-Chief by 135,000,000 American citizens. Never in the history
of the world have a people been 80 completely in partnership with
their government in financing a war as the American people have
been in partnership with the United States Government in World
War II.
Regraded Unclassified
131
amutuale
MUTUAL BROADCASTING SYSTEM Inc.
NewYorkOffice:H40.Breadwa
PENNSYLVANIA 6-9600
August 30, 1944
The Honorable Henry Morgenthau, Jr.
The Secretary of the Treasury
Washington, D. C.
Dear Sir:
Mr. Miller McClintock is out of the city and
will not return until September 5. I know that
8
he will be very pleased, however, upon his return
to find your kind letter of August 25 regarding
the American Forum of the Air program.
Sincerely yours,
Puryear &
Emma S. Puryear
ESP:frd
Secretary to Mr. McClintock
Regraded Unclassified
Treasury Department
132
Division of Monetary Research
Date August 30, 1944 19
To:
Secretary Morgenthau
Appended is a summary of the
London Embassy's "Labor Letter No. 5",
which you may find of interest.
H.D.W.
MR. WHITE
Branch 2058 - Room 2141
133
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE August 30, 1944
TO
Mr. White
FROM
Mr. Casaday
Subject: Summary of London Embassy's "Labor Letter No. 5 (1944)",
July 31, 1944
1. Rusholme By-Election
In the first by-election since D-day the Government (Conservative) candidate
held the seat with 8,430 votes against 6,670 for his Commonwealth opponent and
734 for an Independent. The Conservative majority in this constituency fell
from nearly 8,000 in 1935 to approximately 1,000 in 1944; thus the Rusholme
election continues the tendency away from an overwhelming Conservative majority
exhibited in by-elections earlier in the year. However, none of the Labor or
Liberal E.P.'s who supported Independents in the earlier 1944 contests came
out at Rusholme - an indication that Party discipline has been tightened up.
2. Left-Wing Election Plans
The Left-Wing "splinter" parties (Communist, Commonwealth, I.L.P.) are all
planning to contest a considerable number of seats in the next general election.
Each has urged a "united front" of Labor Party and other progressives but each
wants such unity only on its own terms. The Labor Party will not consider the
united front and there is no prospect that the "splinter parties" can unite
among themselves. The eats these parties plan to contest are largely already
held by Labor. The result may be a splitting of the Labor vote and a larger
Conservative majority nationally.
3. T.U.C.'s Post-War Plans
The General Council of the T.U.C. will soon publish a long report on
post-war industrial reconstruction. Its recommendations will deal with full
employment policies, nationalization of selected industries, degree of public
control over other industries and the degree of public control over raw materials,
quality, prices, wages, hours and trade unions.
The T.U.C. has already announced that it wants the 40-hour week with no
reduction in pay as soon as possible after the war. It wants this established
by statute and, when privately negotiated, made legally enforceable by law.
T.U.C. expects difficulty from three sources: (a) open opposition on the part
of a large element in Parliament and from industry, the export trade and a
large part of the press; (b) some trade unions who will press for continuing
the "guaranteed week" whether or rot 40 hours are worked; (c) some unions who
will decry the Parliamentary remedy, preferring to depend solely on collective
bargaining.
Regraded Unclassified
134
Division of Monetary
Research
- 2 -
4. Parliamentary Crisis on Town and Country Planning Rill
The Uthwatt Committee was appointed in January 1941 to report "as a matter
of urgency" on the post-war use of land. The Committee's report, issued in
September 1942, evoked a Government promise of a comprehensive land policy and
program. The Bill finally presented 22 months later fell far short of the
recommendations of the Report and was opposed by members of all parties. Had
the criticisms (which cannot be adequately summarized here) been confined to
back-benchers the Government might have bludgeoned the House into submission
but as it was the Bill was narrowly passed only on a Government promise that
major amendments would be entertained at the second reading.
For the first time in Labor Party history its members (except those in
the Government) abstained from voting. The Party felt that to vote against
the Bill would embarrass the Labor Ministers (as in the case of the Beveridge
Report) and yet members felt they could not follow these Ministers in support
of the Bill until they had seen it in drastically amended form. This unpre-
cendented action suggests that the Labor Party is by no means in the pockets of
its present Cabinet Ministers, a circumstance which may affect the possibility
of continuing a Coalition Government after the war.
Regraded Unclassified
135
FBM
PLAIN
August 30, 1944
AMEMBASSY,
BUENOS AIRES.
1357, Thirtieth
Your 2230, August 28.
Priority should be granted to Tartakower
whose travel is sponsored by War Refugee Board.
HULL
(JDW)
810.79611 Reservations 8/28/44
AD:JOB:HMK
8/29/44
WRB
Regraded Unclassified
136
AIRGRAM
From: American Embassy, Habana, Cuba
Dated:
August 30, 1944
Rec'd:
August 31, 5 p.m.
SECRET
Secretary of State
Washington, D.C.
A-1927, August 30, 2:10 p.m., 1944
Reference Department's airgram 1229, July 21,
5:40 p.m., 1944.
Embassy has made several efforts to ascertain
from Foreign Office whether the instructions mentioned
in Embassy's airgram 1294 of June 16 were sent to Madred
or to Bern. Unfortunately these efforts have not up to
the present time met with success; the For eign Office
continues reluctant to show much initiative in this mat-
ter.
I shall not fail to inform the Department if any
further information is forthcoming from the Cuban Govern-
ment.
NUFER
GOA/deo
711 Refugee Exchange
Miss Chauncey (For the Sec'y), Abrahmason, Akain, Cohn, Drury, DuBois
Friedman, Gaston, Hodel, Leughlin, Lesser. Mennon, Marks, McCormack,
Pehle, Sargoy, Standish, Weinstein, Cable Control.
Regraded Unclassified
137
DRAFT OF CABLE TO LONDON
Reference is made to the Department's telegram No. 2518 of
March 31, 1944, relative to issuance by Treasury of license No. W-2153
to United Czechoslovak Relief, New York City. You are informed and
requested to notify Mr. Frantisek Nemec and Mr. Jan Bocko that United
Czechoslovak Relief has been reorganized and is now known as American
Relief for Czechoslovakia, Inc., in view of which Treasury has amended
license No. W-2153 to show the name of license as American Relief for
Czechoslovakia, Inc., New York City. Such license shall be deemed to
be in full force and effect under same terms and conditions and shall
govern operations of American Rekief for Csechoslovakia, Inc., as though
such license was originally issued in its name.
9:35 a.m.
August 30, 1944
RBParke:jfh 8/26/44
Regraded Unclassified
138
CABLE FROM THE WAR REFUGEE BOARD AND THE DEPARTMENT TO AMBASSADOR WINANT,
LONDON, ENGLAND.
Please refer to your 6952 of August 26.
The proposed action of the British Foreign Office meets with
the approval of the War Refugee Bo rd and the Department. Please
advise the British Foreign Office that Myron Taylor is being advised
to join with his British colleague in taking the steps suggested by
the Foreign Office.
9:00 a.m.
August 30, 1944
MSargoy:dh
8/29/44
Regraded Unclassified
139
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Embassy, London
DATED:
August 30,1944
NUMBER:
6968
CONFIDENTIAL
Please refer to your 6952 of August 26.
The proposed action of the British Foreign Office meets
with the approval of the War Refugee Board and the Department.
Please advise the British Foreign Office that Myron Taylor is
being advised to join with his British colleague in taking the
steps suggested by the Foreign Office.
HULL
Regraded Unclassified
140
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Embassy, London
DATED:
August 30, 1944
NUMBER:
6969
SECRET
Reference is made to the Department's telegram No. 2518 of
March 31, 1944, relative to issuance by Treasury of license No. W-2153
to United Czecheslovak Relief, New York City. You are informed and
requested to notify Mr. Frantisek Nemes and Mr. Jan Becke that
United Czechoslavak Relief has beenreorganized and is now
known as American Relief for Csecholovakia, Inc., in vie W of which
Treasury has amended license No. W-2153 to show the name of
licensee as American Relief for Czecholovakia, Inc., New York
City. Such license shall be deemed to be in full force and effect
under same terms and conditions an d shall govern operations of
American Relief for Czechoslovakia, Inc., as though such license
was originally issued in its name.
HULL
Regraded Unclassified
141
PEM
August 30, 1944
Distribution of true
reading anly by special
7 p.m.
arrangement. SECRET W)
AMPOLAD,
CASERTA.
85
The following for Ackermann is WRB A6.
Please refer to our 431 of August 4, 1944.
For your information the British have agreed to a joint
approach to the Pope to request him to appeal to the German
authorities to release refugees deported from Allied Italy,
if he has not already done so, and to assure him that Allied
authorities will receige and care for all such persons
released by the Germans. The text of the cable received from
Ambassador Winant is as follows:
QUOTE Attention of the War Refugee Board.
This morning discussed with refugee section of the
Foreign Office the Papal intervention on behalf of refugees
of northern Italy.
Sir Noel Charles' reply to inquiry as to accomodations
was received this morning by the Foreign Office. According to
Charles' report, an additional five thousand refugees may be
accommodated in liberated Italy and use of North African
camps was also suggested.
It is the understanding of the Foreign Office that there
are far more than five thousand refugees north of the battle
line, but since it believes the military situation is changing
so rapidly that the problem of accommodating this five thousand
additional will not arise, it feels that it will be safe to
give assurances of accommodation without numerical limitation.
The Foreign Office, however, does not know whether or not the
Pope has already appealed to German authorities and presuming
we will take parallel action, they will take the following steps:
Issue instructions to Charles to a scertain whether or not
an appeal has been made by the Pope. Provided he has not, to
request him to do so with assurances that the persons rescued
will be cared for and received by Allied authorities. Provided
he has made an appeal, to suggest that these assurances be
repeated by him.
It is hoped by the Foreign Office that this action will
meet with the approval of WRB and that appropriate instructions
will be issued to our represntative in Rome. UNQUOTE
Regraded Unclassified
142
4
-2- #85, August 30, 7 p.m., to Caserta.
We have advised the British XXX that this proposal is satis-
factory to the Board and the Department and instructions have
been cabled to Myron Taylor to join with his Brirish colleague
along the lines suggested in the above quoted cable.
HULL
(GHW)
WRB:MMV:KG
SE
BC
8/30/44
Regraded Unclassified
143
CABLE FROM WAR REFUGEE BOARD TO ACKERMANN, AMERICAN CONSULATE GENERAL
NAPLES, ITALY.
Please refer to our 431 of August 4, 1944.
For your information the British hage agreed to a joint
approach to the Pope to request him to appeal to the German authorities
to release refugees deported from Allied Italy, if he has not already
done so, and to assure him that Allied authorities will receive and
care for all such persons released by the Germans. The text of the
cable received from Ambassador Winant is as follows:
QUOTE Attention of the War Refugee Board.
This mornign discussed with refugee section of the Foreign
Office the Papal intervention on behalf of refugees of northern
Italy.
Sir Noel Charles' reply to inquiry as to accommodations was
received this morning by the Foreign Office. According to Charles'
report, an additional five thousand refugees may be accomodated in
liberated Italy and use of North African camps was also suggested.
It is the understanding of the Foreign Office that there are
far more than five thousand refugees north of the battle line, but
since it believes the military situation is changing 80 rapidly that
the problem of accommodating this five thousand additional will not
arise, it feels that it will be safe to give assurances of accommoda-
tion without numerical limitation. The Foreign Office, however, does
not know whether or not the Pope has already appealed to German
authorities and presuming we will take parallel action, they will take
the following steps:
Issue instructions to Charles to ascertain whether or not an
appeal has been made by the Pope. Provided he has not, to request
him to do 80 with assurance that the persons rescued will be cared
for and received by Allied authorities. Provided he has made an
appeal, to suggest that these assurances be repeated by him.
It is hoped by the Foreign Office that this action will meet
with the approval of WRB and that appropriate instructions will be
issued to our representative in Rome. UNQUOTE
We have advised the British that the proposal is satisfactory
to the Board and the Department and instructions have been cabled to
Myron Taylor to join with his British colleague along the lines suggested
in the above quoted cable.
THIS IS WRB CABLE NO. 46
9:35 a.m.
August 30, 1944
MSargoy:dh 8/29/44
Regraded Unclassified
144
CABLE FROM THE DEPARTMENT AND THE WAR REFUGEE BOARD TO MYRON TAYLOR.
VATICAN CITY.
Please refer to your 237 of July 17, the Department's No. 16
of July 24, and your 267 of August 5.
As a result of negotiations with the British, the following
cable was received from Ambassador Winant at London:
QUOTE Attention of the War Refugee Board.
This morning discussed with refugees section of the Foreign
Office the Papal intervention on behalf of refugees of northern
Italy.
Sir Noel Charles' reply to inquiry as to accommodations was
received this morning by the Foreign Office. According to Charles'
report, an additional five thousand refugees may be accommodated in
liberated Italy and use of North African camps was also suggested.
It is the understanding of the Foreign Office that there are
far more than five thousand refugees north of the battle line, but
since it believes the military situation is changing 80 rapidly that
the problem of accommodating this five thousand additional will not
arise, it feels that it will be safe to give assurances d' accommodation
without numerical limitation. The Foreign Office, however, does
not know whether or not the Pope has already appealed to German author-
ities and presuming we will take parallel action, they will take the
following steps:
Issue instructions to Charles to ascertain whether or not an
appeal has been made by the Pope. Provided he has not, to request
him to do 50 with assurance that the persons rescued will be cared
for and received by Allied authorities. Provided he has made an
appeal, to suggest that these assurances be repeated by him.
It is hoped by the Foreign Office that this action will meet
with the approval of WRB and that appropriate instructions will be
issued to our representative in Rome. UNQUOTE
The above action suggested by the British is satisfactory both
to the War Refugee Board and the Department. Accordingly, please join
with your British colleague in taking the action called for in the above
quoted cable.
9:35 a.m.
August 30, 1944
MSargoy:dh
8/29/44
Regraded Unclassified
145
RMS
August 30, 1944
Distribution of true
reading only by special
7 p.m.
arrangement. (SECRET w)
AMDEL,
ROME.
114
The cable below is for Taylor.
Please refer to your 237, of July 17, the Department's
No. 16 of July 24, and your 267 of August 5.
As a result of negotiations with the British, the following
cable was received from Ambassador Winant at London:
QUOTE Attention of the War Refugee Board.
This morning discussed with refugee section of the
Foreign Office the Papal intervention on behalf of refugees of
northern Italy.
Sir Noel Charles' reply to inquiry as to accommodations
was received this morning by the Foreign Office. According to
Charles's report, an additional five thousand refugees may be
accommodated in liberated Italy and use of North African camps
was also suggested.
It is the understanding of the Foreign Office that there
are far more than five thousand refugees north of the battle
line, but since it believes the military situation is changing
so rapidly that the problem of accommodating this five thousand
additional will not arise, it feels that it will be safe to
give assurances of accommodation without numerical limitation.
The Foreign Office, however, does not know whether or not the
Pope has already appealed to German authorities and presuming
we will take parallel action, they will take the following
steps:
Issue instructions to Charles to ascertain whether or
not an appeal has been made by the Pope. Provided he has not,
to request him to do so with assurance that the persons res-
cued will be cared for and received by Allied authorities.
Provided he has made an appeal, to suggest that these assur-
ances be repeated by him.
It is hoped by the Foreign Office that this action will
meet with the approval of WRB and that appropriate instructions
will be issued to our representative in Rome. UNQUOTE
Regraded Unclassified
146
-2- #114, August 30, 1944, 7 p.m. to Rome.
The above action suggested by the British is satisfactory
both to the War Refugee Board and the Department. Accordingly,
please join with your British colleague in taking the action
called for in the above sportant quoted cable.
HULL
(GLW)
WRB:MMV:KG
SE
BC
8/30/44
Regraded Unclassified
147
EMPASSY OF THE
UNITED STATES OF AMERICA
Regraded Unclassified
CONFIDENTIAL
No. 2990
Madrid, Spain, August 30, 1944.
Subject: Transmitting Copy of Embassy's Note Verbale to Ministry
of Foreign Affairs Requesting Facilities for Entry into
Spain of Certain Categories of Aliens Eligible for
Immigration to the United States
The Honorable
The Secretary of State,
Washington.
Sir:
with reference to the Department's telegram No. 2363 of
August 24, 1944, 10 p.m., authorizing the issuance of immigration
visas by American Consular Officers in Spain to certain relatives
of citizens and alien residents of the United States proceeding
from areas controlled by Germany and its allies, I have the
1/
honor to enclose a copy of the Embassy's Note Verbale No. 3012
of this date to the Ministry of Foreign Affairs requesting, in
accordance with instructions contained in that telegram, that
the Spanish Government consent to the temporary entry of such
persons into Spain and that it make known this consent to the
German, Hungarian and other enemy Governments. A copy of the
Embassy's Note Verbale No. 2908 of August 11, 1944, to which
reference is made in the enclosed Note Verbale, was transmitted
to the Department under cover of the Embassy's despatch No. 2905
of August 14, 1944.
American Consular Officers in Spain are being duly advised
of the foregoing authorization, although it is believed that
whatever applicability this program might once have had in Spain
will have been largely obviated by the return of southern and
southwestern France to Allied control and the consequent disappear-
ance of & common Spanish frontier with German-controlled territory.
Respectfully yours,
For the Ambassador:
W. Walton Butterworth
Counselor of Embassy
Enclosure:
To Foreign Office,
No. 3012, August 30, 1944,
File No. 811.11
MWB/Jf
Original to Department
Copies to Lisbon and Baroelona
Copies to Lisbon and Barcelona
148
COPY
Enclosure to despatch No. 2990 dated August 30, 1944 from Carlton J. H.
Regraded Unclassified
Hayes, American Ambassador, at "adrid, Spain on subject of Facilities
for Entry into Spain of Certain Categories of Aliens Eligible for
Immigration to the United States.
I
No. 3012
NOTE VERBALE
The Embassy of the United States of America presents its compliments
to the Ministry of Foreign Affairs and, with reference to its Note Vertale
No. 2908 of August 11, 1944 requesting the cooperation of the Spanish
Government in facilitating the entry into Spain, in transit to further
destinations, of Jewish refugees proceeding from Hungary to whom United
States immigration visas were issued on or after July 1, 1941 but who by
reason of transportation difficulties and the advent of war have not been
able to make effective use of such visas, has the honor to inform the
Ministry that it has now been instructed by its Government to request
that the Spanish Government accord similar facilities to persons proceed-
ing from German-controlled territory who fall within the following cate-
gories: (1) alien wives, husbands, parents and unmarried minor children
of citizens of the United States, and (2) wives and unmarried minor
children of alien residents of the United States, consular officers of
the United States in Spain and other neutral countries having been
authorised, subject to certain specified conditions, to issue immigration
visas to such persons upon personal application.
The Swiss Government is being requested to inform the German, Hungar-
ian, and other enemy Governments of the foregoing authorisation, and the
Embassy would express the hope, on behalf of its Government, that the
Spanish Government will see fit. to notify such enery Governments of its
willingness to permit the temporary entry of such persons into Spain, it
being understood that any such persons so admitted will be adequately
maintained without expense to the Spanish Government while on Spanish
soil and ovacuated with the least possible delay, and that any who nay be
and ovaruated with the least possible delay, and that any who my-be,
found not to be eligible for admission into the United States will be
removed from Spain as promptly as possible to alternative destinations.
Madrid, August 30, 1944.
mm/jf
/jf
cot Miss Character (For Nan Sectory, Crim, Drugs, Details,
Friedman, Gentrom, laugulin, Inductry 11,5ks,
149
LFG
August 30, 1944
Distribution of true
reading only by special
6 p.m.
arrangement. (SECRET W)
AMLEGATION,
STOCKHOLM.
1739
The following for Olsen is WRB 79.
1. Please convey to Government of Sweden Department's
and Board's utmost appreciation of their invaluable
humanitarian services rendered in connection with Hungarian
situation.
At present juncture, to forestall any last-minute
renewal of deportations on the excuse that no sufficient
arrangements have been made for evacuation of Jews from
Hungary, please suggest to the Swedish Government that it
might advise German and Hungarian authorities that Sweden
is willing to have a Swedish boat call at any German port
chosen by these authorities for purpose of transporting
to Sweden Jewish children from Hungary, and that such sail-
ings will be repeated as long as necessaryl
The foregoing suggestion specifies children since
Swedish Minister, Ankara, advised Amembassy there that
Swedish Government has announced that it was prepared to
receive in Sweden Jewish children from Hungary. Even if
this information inexact, it is hoped that you will per-
suade Swedish authorities to undertake this step. In view
of circumstances, it is not anticipated that the number of
children actually egacuated in this manner would be large.
At any rate, this Government, singly or in cooperation
with British, will guarantee costs of maintenance of such
children in, and their earliest possible evacuation from,
Sweden.
It is thought that obstacles to making a Swedish
boat available for sailings to Haifa, referred to in your
3091 of August 14, might not (repeat not) apply to the
short route between Germany and Sweden.
Should the project materialize, it is hoped that
evacuation from Hungary could be supervised by repersentatives
of Intercross, Swedish Red Cross, or Swedish Government, to
prevent abuse and death en route.
2. With respect to statement in your 3074 of
August 12 regarding authorisation of Swedish visas to
QUOTE Jews holding American immigration visas issued on
or after July 1, 1941 UNQUOTE, please note that persons
intended as beneficiaries of procedure developed in para-
graph numbered two of Department's 1501 of July 28 are
those whose American visas were authorised subsequent to
Regraded Unclassified
150
-2- #1739, August 30, 6 pa, to Stockholm
July 1, 1941, as well as those to whom such visas were
actually issued. Please explain this point to Swedish
authorities and request that they instruct their consuls
in Hungary and elsewhere in enemy-held territory to issue
visas to persons to whom American visas were authorized
as well as to those to whom American visas were actually
issued. In cases where applicants will not be able to
furnish evidence of authorization, such evidence will
presumably be available at local Swiss Legation or consu-
late. In addition, efforts will be made to send a list
of visa authorizations to you for transmission to Swedish
Foreign office which, it is hoped, will forward it to
various Swedish consulates in ememy-held territory.
HULL
(GLW)
WRB:MMV:KG
NOE
VD
SE
8/26/44
Regraded Unclassified
151
CABLE TO MINISTER HARRISON AT BERN AND McCLELLAND FROM WAR REFUGEE BOARD
Reference your 5588 of August 26, 1944. Please express to Saly
Mayer the Board's appreciation for the excellent manner in which he is
handling a most difficult task.
The Board is in full accord with your view that it is of the
utmost importance that every effort must be made to extend the period
of negotiation and thereby gain time. The Board is confident that by
adroit handling Saly Mayer can take further steps without entering into
any irrevocable engagement, and can minimise the danger of negotiations
being broken off. It should be made clear to Mayer that there is no
possibility of obtaining any material of any military value. Mayer, how-
ever, is in a position to indicate that there are funds amounting to at
least #2,000,000 in the United States available to him, and it is suggested
that negotiations looking toward the payment of monetary consideration be
extended as long as possible in order to gain time. However, no commitment
to make any such payment can be entered into without approval here. Solely
from the standpoint of saving lives, and aside from any other consideration,
we are not at all convinced that large monetary payments to the German
Government would be successful, and under present circumstances, we could
not approve any such commitment.
Saly Mayer should inform the conferees that he can not (repeat
not) hope to secure any authorization for Switzerland or any other neutral
country to deliver additional goods to Germany without a more precise
definition of the nature and quantity of the goods desired. Thus, he may
properly ask them to submit, as you suggest, a list of their desiderata,
so that he may be placed in a better position to negotiate for the neces-
sary authoritations. This procedure should afford at least one and, if
the conferees are not prepared to submit such a list at once, possibly
two additional adjournments. When such a list is submitted, Saly Mayer
can prolong the negotiations by opening discussions looking toward the
removal from the list of articles for which he may claim to have no hope
of securing authorizations, He may also request more details concerning
other articles, and by placing the discussions on a technical basis, re-
quire the conferees to withdraw to consult with colleagues having more
technical knowledge. The foregoing are but suggestions, and the Board
relies on Saly Mayer guided by you to employ every possible dilatory
tactic to prolong the negotiations.
*
*
THIS IS WRB BERN CABLE NO. 153.
It will be appreciated if you will arrange for prompt clearance and dispatch is
cipher of the attached cable to Minister Harrison at Bern and McClelland, from
the War Refugee Board.
4:50 p.m.
August 30, 1944
ISIesser:tmh 8/30/44
Regraded Unclassified
152
BJR - 537
Ankara
This telegram must be
paraphrased befere being
Dated August 30, 1944
communicated to anyene
other than a Government
Rec'd 10:03 am. 31st
Agency. (RESTRICTED)
Secretary of State,
Washington,
1593, August 30, 1 p.m.
FOR PEHLE WRB. ANKARA's 142
It is reliably reperted August 28 in Istanbul that
"all restrictions imposed upen Jews in Bulgaria have
been abelished. All decrees published on August 29,
1942 are censidered null and void. Beginning as of
August 28, 1944 all Jews may exercise any prefession
and may circulate in the same way as the rest of the
population. Reserve Colonel Taggeras representative
of the Jewish community has been infermed of this
resolution".
Confirmation of the above has not as yet been
received. AS soen as the text of the decree is received
it will be telegraphed.
STEINHARDT
BB
Regraded Unclassified
153
BJR-323
Ankara
This telegram must be
paraphrased before being
Dated
August 30, 1944
communicated to anyone
other than a Government
Rec'd
6:40 p.m.
Agency. (RESTRICTED)
Secretary of State,
Washington.
1594, August 30, 2 p.m.
FOR PEHLE WRB FROM THE AMBASSADOR AND HIRSCHMANN
ANKARA'S 143.
In connection with the rapid developments in the
situation relating to the Jews in Bulgaria in our opinion
measures for their emergency relief should be made
available as soon as possible particularly as such
assistance will obviate the necessity for removing many
of these individuals from the Balkans. We have discussed
this possibility with Charles Passman who is now repre-
senting the JDC in Istanbul succeeding Resnik. Passman
is in agreement that emergency relief should be extended
to those Jews in Bulgaria requiring the same provided
the Board and the State Department approve.
STEINHARDT
JMS:WFS
Regraded Unclassified
154
BE-346
Ankara
This telegram must be
paraphrased before being
Dated August 30, 1944
communicayed to anyone
other than a Governmental
Rec'd 7:30 p.m.
Agency. (RESTRICTED)
Secretary of State
Washington
1595, August 30, 3 p.m.
FOR THE WRB
Ankara's 144.
During the past few months a total.,Pf approximately
800 Jewish refugees from Greece and the Greek islands
have entered Turkey without Turkish visas or other
documents through small ports on the Aegean en route
to Palestine. These refugees have been promptly
transported to Palestine with the assistance
of the Turkish authorities who while net formally
consenting to the movement have nonetheless
facilitated the same. These 800 refugees are in
addition to all others reported by me as having
transited Turkey en route to Palestine and are
not (repeat not) included in the number reported
as having entered through the pert of Ismir.
STEINHARDT
RR
Regraded Unclassified
155
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, Moscow
TO:
Secretary of State, Washington
DATED:
August 30, 1944
NUMBER:
3223
CONFIDENTIAL
I have waited approaching the Foreign Office again
on the subject of pressure by the Soviet Government on
the Jewish question in view of the fact that developments
regarding Bulgaria have been moving so rapidly since Depart=
ment's cable of August 16, 1944, No. 1955, from War Refugee
Board, has been received. It is felt by me that it wuld
not be useful to make an approach here at thepresent time.
It is assumed that such matters can now be taken up direct
with Bulgarian Government representatives who are to meet
with us to discuss an armistice and that the Soviet observer
would be kept advisedand asked to support us. or course,
I will gladly press the Soviet Government here in addition
for its cooperation if, on theother hand, it develops that
there is need for such action.
HARR IMAN
DOR:IDB:HVR 9/1/44
Miss Chauncey (For the Sec'y), Abrahamson, Cohn, DuBois, Friedman, Hodel,
Laughlin, Lesser, Mannon, McCormack, Cable Control Files
Regraded Unclassified
156
DEPARTMENT
INCOMING
DIVISION OF
OF
COMMUNICATIONS
STATE
TELEGRAM
AND RECORDS
GEM-476
DEPARTMENT OF Bombay STATE
This telegram must DELIVISION
OF
paraphrased before boi
Dated August 30, 1944
other than a Gov 1944 AM JO 02 6:39 Calle, 31st.
communicated to anyone
agency. (RESTRICTED)
COMMONICA ESTRI
Allo RECORDS
Secretary of State,
ILIAISON)
Washington.
495, August 30, 4 p.m.
Referring to despatch No. 726, August 25 (ropect
August 25) from New Dolhi quoting remarks of Shroff
and Chetty at Karachi on their return from Brotton
Woods Conference. The press quoted Shroff as follows:
"Indians are living in A fool's perndise if they
think Americans will do anything for India. II This
remark has been commonted upon frequently by the Bombay
newspapers and has put the United States in on unfavor-
able light.
The Consulate's cirgram A-107, August 24 (repent
August 24) refors to the TIMES of India's account of
Shroff's statement which more nearly approximates what
he actually said. Shroff informed this office yesterday
that the majority of newspapers had misquotod him and
that what he had actually said was "are living in a
fool's paradise if thoy think Americans will help
India to
Regraded Unclassified
157
-2-#495, August 30, 4 p.m., from Bombay.
India to obtain political freedom". Shroff has
informed Consulate that he will correct this erroneous
report when he moets press representatives August 31
at Bombay.
Repeated to Delhi as my No. 107, August 30.
DONOVAN
RR
NOT TO BE RE-TRANSMITTED
158
COPY NO.
SECRET
OPTEL No. 283
Information received up to 10 a.m., 30th August, 1944,
1. NAVAL
Germans reported to have evacuated ST. GILLESSURVIE, 40
miles S.W. NANTES yesterday morning. Further south all bridges
blown at SABLES D' OLONNE and harbour entrance partly blocked.
NOIRMOUNTIER Island still occupied. Bombardments by Allied war-
ships TOULON, MARSEILLE and NICE areas continued 25th. Carrier-
borne fighter bombers attacked bridges RHONE Valley, motor trans-
port and troop concentrations. Sweeping of Channel PORT DE BOUC
finished and port partly established. On 25th/26th in GULF OF
GENOA coastal forces torpedoed a Destroyer.
2, MILITARY
FRANCE. Further sweeping advances east of PARIS by 3rd
U.S. Army whose troops have reached VITRY, CHALONS-SUR-MARNE and
EPERNAY. They have captured SOISSONS and are also in RHEIMS.
Limited advances reported north of PARIS. On British front an
armoured thrust N.E. of VERNON has made good progress and is
approaching GOURNAY. South of ROUEN Canadians have captured BOOS
while between ROUEN and the coast they are closing in on Germans in
three loops of the SEINE.
SOUTHERN FRANCE. Germans in TOULON and MARSEILLE have
surrendered unconditionally and the German Admiral Commanding
Naval Forces, S.E. France, has been captured. East of CANNES U.S.
Forces have crossed the VAR about 10 miles inland, In the RHONE
Valley U.S. attacks on MONTELIMAR have penetrated into the town
and a strong French reconnaissance force has cleared the west bank
of the river northwards to PONTST ESPRIT and westwards to NIMES.
ITALY. On the right Poles have pushed the enemy back
to the Gothic Line while Indian troops have captured URBINO. East
of FLORENCE our troops have advanced at PONTASSIEVE and in the
BIBBIENA Area,
RUSSIA. Russians report continued progress S.E. of
VALKA. In the south they have captured BUZAU, west of IZMAIL they
have forced the DANUBE, advanced southwards and occupied a number
of places in Northern Dobrudja. In cooperation with the Black Sea
Fleet they have captured CONSTANZA.
3. AIR OPERATIONS
WESTERN FRONT. 29th. Medium bombers dropped about 100
tons on an ammunition dump near AMIENS. Fighters which attacked
road and rail transport in N.E. FRANCE, Low Countries and along
Franco-German border claim to have destroyed 68 locomotives, 262
railway carriages and wagons, 26 motor, 40 armoured and 45 horse-
drawn vehicles. Coastal Command aircraft sank an R-boat off LE
TOUQUET and off HELIGOLAND set fire to four ships in a five-vessel
convoy. German casualties 21, o, 7 on the ground. Allied - 9
aircraft missing.
29th/30th. 897 aircraft despatched:
STETTIN
404
KOENIGSBERG
189
Sea-mining
43
BERLIN and HAMBURG
53 Mosquitoes
Other missions
208
Three aircraft missing, and from STETTIN and KOENIGSBERG 38 out-
standing, probably missing.
4. HOME SECURITY
During 24 hours ending 6 a.m., 30th, 153 flying bombs
plotted.
Regraded Unclassified
159
August 31, 1944
9:25 a.m.
D. W.
Bell:
Good morning.
HMJr:
Hello, Dan.
B:
How are you?
HMJr:
I'm all right.
B:
Got good weather up there?
HMJr:
Today, we have.
B:
Gee, it's swell.down here. Just like ....
HMJr:
What?
B:
Just like October down here.
HMJr:
Well, it's beautiful here.
B:
It's grand here too.
HMJr:
When I get through talking on this other stuff,
I'd like to talk to you and Gamble on this
phone, see?
B:
All right. You mean hook 'em up with Gamble
over -- ah -- hook up with Gamble over at the
other place, huh? Don't have him come over?
HMJr:
No - no - no. Just hook up on the phone.
B:
All right.
HMJr:
And -- now, is White around?
B:
White's right here. Do you want him?
HMJr:
Yeah, and then when I get through I want to
talk -- the others can go -- and just Mrs. Klotz,
and I want to talk to you and Gamble.
B:
Okay. Harry's right here.
Harry
White:
Good morning.
HMJr:
Hello, Harry.
Regraded Unclassified
160
- 2 -
W:
Good morning, sir.
HMJr:
What do you know?
W:
Well, there's been ....
HMJr:
You'll have to talk louder.
W:
There's been no special developments within
the Treasury. We're going ahead and we'll
have a draft of a memorandum, such as you
wanted, and a draft of the directives, for
consideration by the -- your committee here.
That is the -- they haven't considered it yet.
On -- as far as other departments are concerned,
I called Jack McCloy, who said that he had
already called Hull
....
HMJr:
Yeah.
W: :
....
and that Hull was agreeable to go ahead
and named one of his men, Matthews -- Dunn is
busy at Dunbarton Oaks -- and said that he was
ready to participate, and McCloy said that he
would call a meeting, and I should wait until
I heard from him.
HMJr:
Yeah.
W:
I haven't heard from him. I was going to call
him again this morning. And, I also mentioned
the - the meeting on Tuesday with Hull, and he
said that he was going to make certain that
Stimson was going to be in then -- I think he
had some doubt -- and then he said that he would
arrange the meeting, and would let me know at
once, but that was
....
HMJr:
Well -- hello?
W:
Yes.
HMJr:
Stimson should be back by Tuesday. I went up
with him. There's no reason why he shouldn't
be back.
W:
Yes. Well, then, if I don't hear from him this
morning, I'll call up, myself, and make the appoint-
ment.
HMJr:
And it's ridiculous.
Regraded Unclassified
161
- 3 -
W:
Yeah.
HMJr:
Now -- ah
W:
But that's, of course
....
HMJr:
Now, look
W:
Yes.
HMJr:
whatever memorandums you can get out by
Friday night to send to Fishkill, please give
it to my office to send up to me.
W:
By Friday night? Oh, we can easily do that.
We can send out something tonight, if you want to.
HMJr:
Now, another thing. Now -- no, I'm trying to say
something. I read those two memorandums, see?
W:
Yes.
HMJr:
That you sent me
....
W:
Yeah.
HMJr:
now, those boys have got nothing new.
W:
No, that's
HMJr:
Now, wait a minute, Harry, please. I'm trying
to say something, if you'll let me.
W:
All right. Yeah.
HMJr:
I wish that your men would attack the problem
from this angle, that they take the Ruhr and
completely put it out of business. Now, have
you got it? That's one thing -- and also the
Saar. Now, the reason I say particularly the
Ruhr, you can find out very easily what their
production of coal and steel and that sort of
thing is, and consider what it would do in the
way of helping England and Belgium if they stage
a come-back, because, after all, the Ruhr -- it was
partly responsible for the great unemployment in
England, and one of our problems is to put England
back on its feet. And both of these studies and
all other studies that I've ever seen are contem-
plating keeping the Ruhr in existence. And I'd
162
- 4 -
HMJr:
Cont'd.
like to approach the thing from -- just putting
the whole Ruhr out of production. And also, as a
separate thing, what would happen if we put the
Saar out of production? Now, I'd like some
studies made on that as fast as possible.
W:
All right.
HMJr:
Hello?
W:
I'm listening.
HMJr:
Now, have you got that thought?
W:
Yes.
HMJr:
And, also, as I say, what competition the Ruhr
gave to both the Belgian coal and steel and
England coal and steel, and an estimate to guess
how long it would take before Russia could be in
production and that she could take care of the
customers -- I mean, England, Belgium and Russia
could take care of the customers that Germany
used to have -- with coal and steel.
W:
All right.
HMJr:
Now, another thing: I am confident that this
man who says that Johns Hopkins has been making
studies along these lines for the President
on the question of "how can we get them" --
now, I think the committee is headed up by
Stettinius -- hello?
W:
I'm listening.
HMJr:
Because this group that went with Stettinius to
England -- this man who is this great geographer --
and I am confident there are studies there, and I --
you might try to find out from State if they have
them.
W:
Bowman, yes. Yeah. All right, we'll do that.
HMJr:
Now, what do you think of that thought of mine,
of approaching this thing of putting both -- first
the Ruhr out, and then, possibly, the Saar?
Regraded Unclassified
- 5 -
163
W:
Well, We would -- we talked at some length last
night about putting the Ruhr out. Nobody has
mentioned putting the Saar out. That will be --
the motives that you're suggesting, we'll consider.
I think that they are quite subsidiary to the major
problems, but we'll consider them and get the kind
of study you want.
HMJr:
Right. And the other thing is: that's all an
economic approach; the other thing, I hope --
you've come through -- your people have come
through with is the studies of how we're -- what
we're going to do with -- with these
....
W:
Eighteen million people that you'd put out
if you
HMJr:
No - no - no.
W:
put the Ruhr out.
HMJr:
No - no, the people who are Nazi-minded.
W:
Oh, that. Well, we're -- I think we're --
I think what we've -- what we've got here
will be satisfactory to you on that. I don't
know how far you'll get with it, but I think
that -- well, what we propose to do, in brief,
would be satisfactory. But it
HMJr:
But the two things: one is economic and what
we're going to do with these people
W:
Yes.
HMJr:
who have been inculcated with Nazism
W:
Yes.
HMJr:
and what are we going to do with them until
they die out, and what are we going to do with
their children?
W:
Well, that -- well, we'll give it some thought.
We haven't given any thought to children so far.
Well
HMJr:
All right -- if you would.
W:
All right.
HMJr:
And whatever you could get off in the afternoon
mail, Friday, to the farm, I would appreciate.
Regraded Unclassified
164
6 I I
W:
Yeah. Well, we can get you off a bunch of
stuff then.
HMJr:
And, Harry, you see what McCloy 1s doing --
he's trying to protect Stimson, 80 that Stimson
doesn't have to come down, but Stimson should
be down there Tuesday morning.
W:
Yeah. Well, I didn't think he had any doubts.
He just wanted to check and make sure, but
I'll -- I'll make certain that that appointment
will be made for Tuesday.
HMJr:
Now, Mrs. Klotz tells me that Hopkins tried to
get me this morning.
W:
I see.
HMJr:
And what I think I'll do 1s, when I get through,
I'll ask whether he wants to speak to me.
W:
Yes.
HMJr:
And that might solve the thing.
W:
All right.
HMJr:
And - and whatever the answer is, I'll get you
the message.
W:
Okay.
HMJr:
Are you at all encouraged that we can get
somewhere?
W:
Well, we can get somewhere in the Treasury.
I think that what we'll end up with, you'll
have to fight for, but how much, I don't know,
because we're following your instructions; that
is, these lower down, at any rate. It hasn't
come up to your higher committee yet -- lower
down we're following instructions and are being
very -- very tough. There are some very difficult
problems. This Ruhr is the most difficult problem.
You see
....
HMJr:
Well ....
W:
....
crushing it, as you say, presents us with
about fifteen million out of eighteen million
people who -- who will have absolutely nothing
Regraded Unclassified
165
- 7 -
W:
(Cont'd)
to do, and it's trying to -- some of the boys
say that we shouldn't concern ourselves with
that; just shove 'em into Germany. Others feel
that we'd never get away with it, politically.
That -- that's the problem with the Ruhr. If
you internationalize it, it has other problems.
You can't give it to France; it's too big. You
can't give it to Belgium and Holland; it will
swallow Belgium and Holland. It's -- it's the
most difficult problem, and we'll -- we'll work
along the lines that you're suggesting. I think
that the question of how it will help Britain and
France in the post-war period, if you've said to
demolish it, will be a good selling argument, but
it certainly oughtn't to be the decisive consider-
ation as to what to do, but it will be a very
valuable selling argument to those countries.
But we'll investigate it.
HMJr:
I can tell you this: that if the Ruhr was put
out of business, the coal mines and the steel
mines of England would flourish for many years.
W:
Well, it -- it certainly would -- they certainly
would benefit. No question about it, because it's
been a producing -- important producing area for
Europe. But -- and, as I say, that point will be
one of the added advantages. But I don't know
whether it's decisive, but we'll certainly go into
it more. We haven't -- we finished talking about
that last night about half-past ten, and we left it
over for this morning, because we couldn't agree on
what to do with the Ruhr.
HMJr:
Well, the way I feel
W:
Ah -- I don't think we'll agree this morning
either.
HMJr:
the Ruhr ought to be put out of business.
W:
All right. Well, that's -- of course, we were
going to do that, in part, anyway, by dismantling
a good deal of 1t, but we'll work along the lines
you've suggested and see where we get.
HMJr:
Yeah, and don't forget there's a psychological
attitude -- I mean, what we can do to -- with
these people whose brains have been so poisoned.
Regraded Unclassified
166
- 8 -
W:
Well, that we've made very little progress on,
but one of the Germans who is coming down today
18 a psychologist and we'll sound out what he --
he might suggest on that, because that's a
problem that's
HMJr:
Anybody in this -- in the room there who
didn't read the New York Times' dispatch
....
W:
What's that?
HMJr:
about the man found in Poland
W:
Yeah. Well, I know that some of us did. I
don't know -- maybe all of them did
HMJr:
Well, anyway
....
W:
....
they're all nodding their heads, so I
guess they all did.
HMJr:
Well, everybody should read that, and then if
anybody has any doubts -- ah -- they don't
belong in the Treasury.
W:
Well, if they give voice to any, I'm sure they'll
give them to you, directly. The -- you might be
interested in reading -- well, you're not where
you can get it -- there's a little book put out --
maybe you've read it -- by five Dutchmen?
HMJr:
I gave that to you.
W:
Oh, did you?
HMJr:
That can wait until I get back.
W:
Yeah. Well, it's just along similar lines
of what you've been
HMJr:
Harry, there's this book called "An International
T.V.A." -- somebody wrote it
W:
No, I haven't heard of it.
HMJr:
.... well
W:
Is that the title?
HMJr:
how we could take different towns in the
world and do these enormous reclamation projects.
Regraded Unclassified
167
- 9 -
W:
Would it have a bearing on this problem of --
you mean
....
HMJr:
Yes, I was thinking, possibly, you could take
a couple of million Germans -- here was a problem --
a question of taking Central Africa
....
W:
Oh, you mean taking German labor and building
material?
HMJr:
Yes, these reclamation projects.
W:
Oh, that's an idea.
HMJr:
Hello?
W:
That's an idea.
HMJr:
Central Africa where they would take -- oh, I
don't know -- go over those mountains.
W:
Is that in the title?
HMJr:
I think it's called "An International T.V.A."
W:
All right. We'll look it right up.
HMJr:
Yeah.
W:
We'll look it right up.
HMJr:
And it's taking waste places where it would
take millions of people to do the thing.
W:
I see. Now, let me make one thing clear. If --
whatever we emerge with in the Treasury, if we
can sell it to the other two, we'll try our best
HMJr:
That's right.
W:
....
but if we can't, we won't proceed from our
position until you come.
HMJr:
Well, that -- yes. That's right.
W:
Okay.
HMJr:
And have you -- has Lauch Currie been over with
his eighty people?
Regraded Unclassified
168
- 10 -
W:
(Laughs) No, I spoke to him yesterday at noon.
I'm not quite sure how it will work out. I
think maybe we're working on -- on different
periods.
HMJr:
You ought to tell him the old French box car
was forty men and twenty horses.
W:
Eight horses.
HMJr:
And this -- this makes -- eighty men would make
sixteen horses, huh?
W:
Sixteen horses, what?
HMJr:
Well, I mean, eighty men -- you'd have room
for sixteen horses.
W:
I wasn't sure what part you meant. I get you.
HMJr:
And I was being a little careful of a certain part
of the horses.
W:
I see.
HMJr:
I was talking of the rear end, basically.
W:
I see. Apparently you've forgotten the old
Washington slogan: that's the one city where
there are more ends than horses.
HMJr:
Yeah.
W:
All right. Who did you want to talk to?
Mrs. Klotz has just come in. Oh, excuse me,
she's been here right along. (Laughs) Who
did you want to talk to. next? Dan?
HMJr:
I want to talk with Dan and -- about War Bonds --
and you can ask Mrs. Klotz to stand by, please.
W:
Yes.
D. W.
Bell:
Hello.
HMJr:
Yeah.
B:
You want Ted on now, huh?
Regraded Unclassified
169
- 11 -
HMJr:
Please.
Operator:
Operator.
B:
Would you put Mr. Gamble on the phone too?
Operator:
All right.
HMJr:
Hello. Mrs. Spangler.
B:
She's getting Mr. Gamble.
HMJr:
Yeah. I was just going to tell her that --
all right.
B:
I think there's a dead-line on this project
....
Operator:
Hello. Mr. Bell, Mr. Gamble's not in his office.
I might get him at home. I'm not sure.
HMJr:
Well, never mind. I'll tell Mr. Bell what I
want.
Operator:
Right.
HMJr:
Dan. Hello?
B:
Yes.
HMJr:
The main thing is, I want this man that does
this research work for us on war bonds
B:
You mean the -- agricultural man?
HMJr:
The agricultural
....
B:
His name
....
HMJr:
I want him to be studying what will happen if
and when firing stops in Germany, see?
B:
Yep.
HMJr:
I mean, we've got to have an entire new approach,
and I want to know or study the thing -- how can
we -- what can we use to interest these people
in buying their bonds and in holding their bonds.
B:
Uh - huh.
Regraded Unclassified
170
- 12 -
HMJr:
See?
B:
Yep.
HMJr:
And this fellow ought to start studying it, and
he ought to run a continuous study until the
thing happens.
B:
Well, now, he's a -- can't think of his name
for the moment -- but he's the survey man.
HMJr:
That's right.
B:
Now, should he -- Likert ....
HMJr:
Likert.
B:
Yeah -- should he go out and talk to people
about that?
HMJr:
Yeah -- yeah. Just the way he made the survey
at the end of the Fifth War Loan.
B:
Yeah, I remember.
HMJr:
He's got several references to it in there.
B:
Has he?
HMJr:
Yeah.
B:
I haven't seen that.last one.
HMJr:
Yeah. He's already gone part way and I want
him to go much further.
B:
I see. All right. We've -- we've been
discussing that a little in our own con-
ferences -- the Haas group and 80 forth
HMJr:
All right. All right.
B:
They're trying to write a memorandum on the
basis that this German war is going to be over,
and I question it a little, 'cause -- well, I
don't know whether it's better to discuss it
on that basis and tell them that -- ah -- or
discuss it on the basis that the war is going
to continue and what we're getting here is money
to last us for the next few months, after
November 1. Now, whatever happens in Germany,
Regraded Unclassified
171
- 13 -
B: (cont'd) we'll need what we're asking for
....
HMJr:
Yes.
B:
and if there is a collapse in Germany,
we'll tell you what we'll need for the follow-
ing three months, say, from February on
....
HMJr:
Yeah.
B:
....
and do it that way, or try to carry the
program through to June, on the basis that
Germany will collapse by the end of the
year and then we go from there on. I question
that latter approach. It seems to me we ought
to only probably go up to December 31.
HMJr:
That's good enough.
B:
Then stop there with our financing program,
and then say that at that time and in view --
in the light of the military situation, we'll
talk to you again, and that will be the bankers
and the chairmen.
HMJr:
I think December 31 is far enough -- that
anybody can think ahead.
B:
That's right. I think whatever we do we'll
be wrong, probably, on that front.
HMJr:
Let me ask you this: Has George Haas heard
from either the Secretary of War or Navy? I
wrote them a letter for him to get certain
information.
B:
I.. don't know, but
HMJr:
Well, you might ask him and if he hasn't heard,
you might tell Mrs. Klotz and she'll call up
both the offices and try to get an answer.
B:
All right.
HMJr:
It was in order to get statistics on cancella-
tions of contracts.
B:
I see.
HMJr:
Yeah.
Regraded Unclassified
172
- 14 -
B:
All right. I see.
HMJr:
Thank you.
B:
I just wanted to tell you that -- started to
tell you a while ago that I think the dead-
line O.. this matter you're working on 1s
probably the tenth.
HMJr:
I know that.
B:
You know that.
HMJr:
That's why I want Stimson back.
B:
Yeah. Okay.
HMJr:
Right.
B:
All right.
HMJr:
Now -- hello?
B:
Yes.
HMJr:
Is -- is Mrs. Klotz just there alone?
B:
Right here. Well, she and I are alone.
HMJr:
Hello?
B:
Yes.
HMJr:
Alone with you?
B:
Yeah.
HMJr:
Well, I don't worry.
B:
You don't worry, huh? (Laughs)
HMJr:
I trust both of you.
B:
Our respective husbands and wives, I guess,
won't either.
HMJr:
What's that?
B:
Our respective husbands and wives -- husband
and wife won't either.
Regraded Unclassified
173
- 15 -
HMJr:
Won't worry?
B:
Worry. No.
HMJr:
Now, if she would stay there, I'm going to try
to get Hopkins and then she can stay there and
listen, you see?
B:
Okay. Fine. Good-bye.
HMJr:
Good-bye.
Mrs. Klotz:
Hello.
HMJr:
Hello.
K:
Yeah. You want Hopkins?
HMJr:
Yeah, I
....
K:
I'm just
....
HMJr:
I thought you might stay there, you see?
K:
Yeah. Mrs. Spangler.
Operator:
Yes.
K:
The Secretary would like you to try to get
Mr. Hopkins and he wants to talk to him.
Operator:
Right.
HMJr:
I don't hear terribly well.
K:
You don't? Any better now.
HMJr:
Yeah.
K:
Uh - huh.
Operator:
All right, I'll get him right on.
HMJr:
Yeah, I can hear Spangler.
Operator:
Right.
K:
Well, I can talk louder too.
HMJr:
Well, while he's on if you'd listen.
Regraded Unclassified
174
- 16 -
K:
All right.
HMJr:
If you please.
K:
Thank you.
HMJr:
I'll stop talking now.
K:
Yeah.
(Pause)
Operator:
Hello.
HMJr:
Hello.
Operator:
Mr. Hopkins is out of his office for a little
while.
HMJr:
Well, you just leave word to tell him that I'll
be back on the farm Saturday if he wants to
talk to me.
Operator:
All right.
HMJr:
But, in the meantime, if he has anything -- well,
I'll be back on the farm Saturday, I guess that's
the way to leave it.
Operator:
All right.
HMJr:
Because I don't expect to call up again unless
it's a real emergency.
Operator:
I see.
HMJr:
And if this -- unless it's a real emergency, I
don't expect to call up again until I get to
the farm Saturday.
Operator:
I see. All right.
HMJr:
Now could I have Mrs. Klotz?
Operator:
She's right on the phone.
Mrs. Klotz:
Hello. Yeah.
Regraded Unclassified
175
- 17 -
HMJr:
Hello.
K:
Yes.
HMJr:
I said I would stop talking. I don't know
how it sounded.
K:
What do you mean?
HMJr:
I don't know whether . -- how it sounded -- I
didn't -- hope it didn't sound that you should
stop talking.
K:
Oh, no - no - no. No, oh, I see what you mean.
HMJr:
I don't know -- I mean it -- are we still
making a record?
K:
Yeah. Wait a minute. I'll -- I'll cut it
all off.
Regraded Unclassified
176
August 31, 1944
Memorandum for the Secretary's Files
The Treasury Department participated in the discussion of
the German reparation problem through its participation in the
Executive Committee on Economic Foreign Policy. This committee
prepared several reports while the Secretary was at Bretton
Woods. Mr. Glasser and Mr. Ness at different times represented
the Treasury at the meetings. A final report was ready the
week after Bretton Woods, at which time I first became acquainted
with the result of the discussions which had been going on for a
number of weeks. I was not in agreement with the recommendations
in the report and I felt that it was not in line with the Secretary's
views. Knowing that the Secretary was interested in the subject
and not wanting to take any action until he had had an opportunity
of going over the report, I instructed the Treasury delegates to
reserve the Treasury's position on the report at the next committee
meeting.
En route to England I called the Secretary's attention to the
report. He read it and disapproved of its recommendations. Upon
arrival in England, Colonel Bernstein described to the Secretary
the directives which were being prepared for the occupation of
Germany. The Secretary regarded them as reflecting the wrong
policy decisions. His later discussions of the post-surrender
terms followed from the necessity of taking a position on the
committee report referred to above.
H. D. White
Regraded Unclassified
177
A177
ASSISTANT SECRETARY OF STATE
WASHINGTON
August 31, 1944.
Dear Henry:
Thank you very much indeed for your letter
of August 25. I was very happy to have the
opportunity to participate in the broadcast,
and I am confident that it was a helpful begin-
ning in the process of educating the public
as to the purpose and meaning of the Fund and
the Bank.
I am delighted indeed to have the records
of the broadcast, which I received yesterday.
You were very thoughtful and generous to send
them, and I am deeply appreciative of your
kindness.
With warm regards.
Sincerely yours,
team
The Honorable
Henry Morgenthau, Jr.,
Secretary of the Treasury.
Regraded Unclassified
178
TREASURY DEPARTMENT
OFFICE OF THE SECRETARY
August 31, 1944
CONFIDENTIAL
Received this date from the Federal Reserve Bank
of New York, for the confidential information of the
Secretary of the Treasury, compilation for the week
ended August 23, 1944, showing dollar disbursements
out of the British Empire and French accounts at the
Federal Reserve Bank of New York and the means by
which these expenditures were financed.
EmB
Regraded Unclassified
179
FEDERAL RESERVE BANK
OF NEW YORK
August 30, 1944
CONFIDENTIAL
Dear Mr. Secretary: Attention: Mr. H. D. White
I am enclosing our compilation for the week ended
August 23, 1944, showing dollar disbursements out of the
British Empire and French accounts at this bank and the
means by which these expenditures were financed.
Very truly yours,
/s/ H. L. Sanford,
H. L. Sanford,
Assistant Vice President
The Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington 25, D.C.
Enclosure
COPY
Regraded Unclassified
ANALYSIS OF CRITISH AND FRENCH ACCOUNTS
Strictly
(In lillions of Dollars)
Wook
Ended
August 23, 1944
Confidential
BANK OF ENGLAND (BRITISH GOV :RNKENT)
BANK OF FRANCE
PERIOD
DEBITS
CREDITS
Net Incn, (+)
Set, Incr, (+)
Gov't
Transfers to
Proceeds of
Sales of
Transfers
Other
or Dear, (-)
Total
Total
from
or Decr. (-)
Expendi-
Official
Securities
Official
tures
Canadian
Other
Total
Credits
in $ Funds
Debits
Credits
in 0 Funds
Total
(Orficial)
Australian
Debits
(a)
Account
Debits
Credits
Gold
(5)
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
far 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 war(h)
2,203.0
1,792.2
3.4
407.4
2,189.8
1,193.7
274.0
16.7
705.4
- 13.2
38.9
8.8
- 30.1
Third year of war (1)
1,235.6
904.8
7.7
223,1
1,361.5
21,6
5,5
57.4
1,276.8
+ 125.9
18,5
4.4
- 14.1
Fourth year of war(j)
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
22,9
86,2
15,0
71.2
-
-
$
September
-
-
+ 36.8
October
38,2
16,0
-
22,2
115.4
-
-
40.5
74.9
+ 77.2
-
-
-
November
65.9
42.4
5,9
17,6
89.0
-
-
3,5
85.5
+ 23,1
-
-
-
98,1
16.3
81.8
134.5
-
36.5
96.0
+ 36,4
-
-
-
December
-
-
1944
January
44.0
22,2
10.6
12,0
127.5
-
-
1.0
126,5
+ C2.7
I
-
-
February
143.0
14.3
2.1
127.4
144.5
-
-
29:0
115.5
+ 0.7
.
-
-
March
152,9
71.1
12,5
69.3
133.3
-
24.5
108.8
- 19.6
-
-
-
-
April
134,8
14.9
-
119.9
122,2
-
-
27.5
94.7
- 12.6
I
-
-
May
125.1
28,6
8,1
38,2
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
12.3
7.3
131.3
85.9
-
-
10.0
75.9
- 65.0
-
-
-
August
Week Ended
august 2, 1944
18.9
6.5
3.2
9.2
41.0
-
-
-
41.0
+ 22.1
-
-
-
August 9, 1944
10.0
3.2
1.1
5.7
7.3
-
-
-
7.3
- 2.7
-
-
#
August 16, 1944
7.5
5.9
-
1,6
5.0
-
-
-
---
5,0
- 2.5
-
-
-
August 23, 1944
58.8(1)
2.5
-
56.3(1)
9.4(k)
-
-
-
9.4(k)
- 49,4
-
-
-
Average Weekly Expenditures Since Outbreak of Jar
See attached sheet for footnotes.
France (through June 19, 1940) $19.6 million
England (through June 19, 1940) 327.6 million
England (through June 20, 1940 to Harch 12, 1941) 554.9 million
England (since carch 12, 1941)
21.6
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, Wrish 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 see tabulations prior to October 8, 1941.
(1) For monthly breakdown see tabulations prior to October 14, 1942.
(3) For monthly breakdown see tabulations prior to September 29, 1943.
(k) Includes $ 4.0- million apparently representing current and accumulated dollar proceeds of sterling area services and
merchandise exports, and 2 3.0 million in connection with the expenses of our armed forces abroad.
(1) of w.dch 3 50.1 million represents cost of gold purchased for export.
Regraded Unclassified
ARALYSIS OF CARADIAN AND AUSTRALIAN ACCOUNTS
Strictly
(In billions of Dollars)
Week 3nded August 23, 1944
Confidential
BANK
OF
CANADA (and Canadian Government)
COLI ONNEALTH BANK OF ACSTRALIA (and Australian Government)
DEBITS
CREDITS
D331T5
CREDITS
Transfers
Transfers
Transfers from Official
Net Incr.
to
Proceeds
Net Incr.
to
Proceeds
British A/C
(+) or
Official
of
(+) or
fficial
of
PERIOD
Total
British
Others
Total
Gold
For Own
For French
Other
Decr. (-)
Total
British
Other
Total
Gold
Other
Decr. (-)
in $Rinds(e)
Debits
A/C
Debits
Credits
Sales
Credits
$Runds (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
War period through
December, 1940
477.2
16.6
460.6
707.4
534.8
20.9
110.7
41.0
+ 230.2
57.9
14.5
43.4
62.4
50.1
12.3
+ 4.5
Second year of war (b)
460.4
-
460.4
462.0
246.2
3.4
123.9
88.5
+ 1.6
72.2
16.7
55.5
61.2
62.9
18.3
+ 9.0
Third year of war (c)
525.R
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
958,6
47.1
170.4
-
741.3
+ 235.2
197.0
155.1
41.9
200.4
I
200.4
+ 3.4
1943
I
47.2
70.1
10.6
59.5
+ 22.9
16.8
15.0
1.8
20.0
-
20.0
. 3.2
September
47.2
-
-
-
October
32.1
-
32.1
71.3
-
-
-
71.3
+ 39.2
42.8
40.5
2.3
26.5
-
26,5
- 16.3
November
15.4
0.1
15,3
95.1
-
5.9
-
89.2
+ 79.7
6.6
3.5
3,1
18,2
-
18.2
. 11.6
December
146.8
0.3
146.5
55.1
-
55.1
- 91.7
39.7
36.5
3.2
27.0
,
27.0
- 12.7
,
-
1944
January
32.3
-
32.3
78.5
-
10.6
-
67.9
+ 46.2
6.0
1,0
5.0
11.3
-
11.3
+ 500
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
Warch
30.3
0,5
29.8
68.6
15.0-
12.5
-
61.1
+ 58.3
27.6
24.5
3,1
29,9
-
29.9
+ 2.3
April
183.6
-
183,6
96.7
-
I
-
96.7
- 86.9
29.5
27.5
2.0
39.6
-
39.4
+ 9.9
itay
154.2
-
154.2
86.3
-
8.2
-
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
26.0
3.4
21.8
-
21,8
-
- 9.6
20.6
20.6
+ O.2
July
43-7
-
43.7
73.2
-
7.3
-
65.9
+ 29.5
20.4
10.0
10.4
-
Aug- it
Tenk Ended
August 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
-
7.3
10.8
-
1.1
-
9.7
+ 3.5
1.7
-
1.7
0.7
-
0.7
- 1,0
August 16, 1944
3.9
-
3.9
6.3
-
-
-
6.3
+ 2.4
0,2
-
0.2
0,4
-
0.4
+ 9.2
August 23, 1944
2.5(f)
-
2.5
7.3(f)
-
-
-
7.3(s)
+ 4,8
O.1
-
0,1
3.6
-
3.6
+ 3.5
Average Jeckly 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 prlor to October 14, 1942.
Third year of war
10.1 million.
(d) For monthly breakdown see tabulations prior to September 29, 1943.
Fourth year of war
13.9 million.
(e) Reflects changes in all dollar holdings payable on demand or maturing in one year.
Fifth year of war (through August 23, 1944)
16.1 million.
(f) Does not reflect transactions in short term U. S. securities.
(g) Includes of 1.3
million deposited by War Supplies, Ltd.
and
4.3 million received from New York abbounts of Canadian Chartered Banks,
Regraded Unclassified
183
VICTORY
BUY
EXECUTIVE OFFICE OF THE PRESIDENT
UNITED
STATES
BONDS
WAR REFUGEE BOARD
WASHINGTON 25, D.C.
OFFICE OF THE
EXECUTIVE DIRECTOR
August 31, 1944
TO:
Secretary Morgenthau
FROM:
J.W. Pehle
I am sure you will be interested in the attached
excerpts from two confidential letters I have recently
received from Iver C. Olsen, our representative in
Stockholm.
Regraded Unclassified
184
EXCERPTS FROM LETTER OF AUGUST 10, 1944, FROM IVER C. OLSEN,
WAR REFUGEE BOARD REPRESENTATIVE IN STOCKHOLM.
"With the longer nights now arriving, my Baltic operations
are beginning to show results, although they are very difficult.
As I cabled you, I lost my man Vokietaitis, which upset me very
much, and had a most serious effect on our Lithuanian operations,
to say nothing of losing our best source of Baltic intelligence.
He had shipped into Lithuania to complete all the rescue arrange-
ments personally, and the first hint of bad news came when he or
anyone else failed to show up at the appointed place when the boat
went after him the following week. The same thing happened when
the boat went the next week, and it was on the third trip that
the evacuees reported he had been captured and shot by the Germans.
He was a hell of a fine, fearless fellow and the most skillful
operator I had. There are several things I could do to try and
rescue him, but I am afraid to do it in case (a) he is simply
caught behind the lines for the time being, in which case any-
thing I did to stir things up would only focus attention on the
fact that he is over there, or (b) he is in a German prison, in
which case anything I did might blow the story he has told the
Germans, and get him shot straightaway. Consequently, all I
can do just now is to keep the boat going, with the hope he will
show up. There is a tremendous number of political, religious
and racial refugees hiding in the Lithuanian woods in the great-
est possible peril, and these next two weeks are about all we have
to work on.
"The Estonians are doing very well, and I'm damned pleased
with them. They are excellently organized with very good tech-
nicians and equipment, including radio, and know their business.
Through secret arrangements with the General Staff, which avoided
a few score years of imprisonment for espionage, I spent several
hours at their operations base in restricted territory on the
Baltic coast, and must say I was impressed. They have already
gotten about 100 people out of Estonia, and through their excel-
lent organization have made it possible for 2 or 3 hundred others
to get out on boats - not ours. I have been getting a list of
the persons gotten out and without question they are people who
are much wanted by the Germans. Those who are not politically
compromised with the Germans are intellectuals who are certainly
worth saving. As a rule, however, most of them have had very
active connections with the recently organized Estonian National
Committee which not long ago declared war on both Russia and
Germany. This has somewhat complicated the picture, but I have
continued operations on the basis that these persons are most
seriously compromised with the Germans - over 700 of them have
already been arrested and/or shot by the S.S. and Gestapo. The
Estonian operation looks like it will last the longest, which
hardly can be more than a month.
Regraded Unclassified
185
- 2 -
"The Latvian operation 18 not going very well, although it
is just now starting to show B. few results. This is due in
large part to the fact that there are very few Latvians in
Sweden, as a result of which it has been impossible to recruit
thoroughly competent crews to carry out the operations. Also,
I continue to be very uncertain of Salnais, both as to his
point of view and ability, which situation I have made quite
clear to him with the hope that he would make every effort to
show me that I was 100 percent wrong. We can expect some re-
sults, but they will not be remarkable. The Latvian show will
also, in all probability, be washed up in a couple of weeks or
60.
"With the Finnish situation looking quite optimistic, I am
not pushing our program in that area any more, except that I got
a promise from the Swedish Foreign Office that whenever they
undertake to evacuate the Swedes from Finland (they have made
very complete plans), they would include in their transportation
plans the evacuation of the Finnish Jews. Heretofore, however,
I have had some not going on the Finnish program, and temporarily
had almost the entire Jewish community in Sweden mad at me. The
truth of the matter was that they were dragging their heels in
the most unconscionable way, on one pretext or another. The
following is for your information only, but it is only too true
that the Swedish Jews don't want any more Jews in Sweden. They
are very comfortably situated here, have no anti-semetic problems,
and are very much afraid that an influx of Jews will not only be
a burden to them, but will create a Jewish problem in Sweden.
Consequently, you will find them very interested in Jewish rescue
and relief operations, so long as they do not involve bringing them
into Sweden. For example, the fact that thousands of Jews got out
of Denmark was due to a boldly conceived and executed plan of the
Swedish Socialstyrelsen - the Swedish Jews were most apathetic.
In the case of the Norwegian Jews, they were even frigid, since
all these were of the poorer classes. They consider themselves
a sort of Jewish aristocracy and they do not want it watered down.
No more striking example could be found than the fact that a year
or BO ago about thirty Jewish children, orphans, arrived from
Central Europe - finally were taken into Christian homes. The
Swedish Jews did not want to be bothered. This was again illus-
trated in connection with my recent cables regarding the possibility
of getting some Jewish children out of Finland - less than fifty.
The local community did not want to take any steps until full
guarantees of American financial support were supplied. There
should have been five hundred comfortable Jewish homes here avail-
able without a moment's hesitation for these children on a temporary
basis. Their disinterest may be further suggested by the fact that
not to this date has a representative of the Jewish community ever
been down to the pier to receive any of the evacuees from Finland
as they dribbled in. All of this has been done by Filseth of my
office, including getting them through immigration, customs, the
Socialstyrelsen, and then to camp. Only Filseth has been to the
Regraded Unclassified
186
- 3 -
camp to see how they are getting along.
"Another headache has been the Wolbe group, genuinely well
meaning but the most hopelessly helpless group that I have worked
with. All they can talk about 1s Shanghai and Ecuadorian passports,
despite my assurances that the War Refugee Board is exploring all
possible bets in that connection, and that their b1g task is to
devise something that will help in Lithuania. Wolbe's comprehension
of the urgency of this problem perhaps best may be suggested by
the fact that the day after he received $10,000 for Lithuanian
rescue operations he went off on a month's vacation and I haven't
seen him since. This vacation item, by the way, is something
that the Swedes take very seriously, and is no laughing matter
if you are trying to get something done during that period.
"The Hungarian situation looks much better, although I do
not believe that rescue or evacuation operations will be of any
consequence, at least those requiring German transit visas.
It looks like the old game of the Germans permitting their
satellites to make a fine variety of gestures for the record,
but clamping down themselves at whatever point they become in-
volved. However, the situation is much better inside Hungary
wherever the Hungarian authorities have contact, but the trouble
is that in too many places the Germans have control and the Jews
are simply disappearing. I talked with a chap from Hungary yester-
day who had tried to find some Jewish families. He said that the
Jews are moved from camp to camp until trace of them is lost. He
said an awful lot of young Jewish children, particularly girls
14 and 15, are being stolen on the streets and completely dis-
appear. As you know, anybody has authority over them. The Jews
are 80 terrified that they now are simply hiding in their homes.
He believed that if the Jews weren't so terrified, the best thing
they could do would be to take off their yellow stars en masse,
which. would cause 80 much confusion, particularly because of the
air-raids around Budapest, that many of them could escape out into
the country where they could be hidden. He said that about SO
percent of the Hungarian metropolitan population are quite unmoved
by the Jewish persecutions, and simply shrug their shoulders. The
others are too frightened to help. In the country, however, things
are much better.
"I get the impression indirectly that the Swedish Foreign
Office is somewhat uneasy about Wallenberg's activities in
Budapest, and perhaps feel that he has Jumped in with too big a
splash. They would prefer, of course, to approach the Jewish
problem in the finest traditions of European diplomacy, which
wouldn't help too much. On the other hand, there is much to be
said for moving around quietly on this type of work. In any
case, I feel that Wallenberg is working like hell and doing some
good, which is the measure. In a week or 80 the Swedish Red Cross
is sending three men delegates to Budapest to construct camps for
Regraded Unclassified
187
- 4
the Jews, which I think is the most tangible thing that can be
done for the moment. I have a stake in this program. I have
also arranged with Count Bernadotte that the Swedish Red Cross
handle all negotiations with Kleist and Boening with regard to
the evacuation to Sweden of approximately 4,500 Jews. in Germany
with South American visas. It 18 understood that Berlin has
agreed in principle to the idea, but the nature of the proposi-
tion involved will not be available for a few days. I certainly
hope that it 18 something that can be considered, since it would
be a substantial accomplishment, but am rather dubious.
"It seems to me that I must have run down a thousand or so
straw possibilities in trying to obtain concrete results, and
wish that more of them could have panned out. You might be
interested in one of them, which I did not report for certain
reasons. As you know, Goering's first wife (her second marriage)
was the Swedish Countess von Rosen, through which marriage Goering
acquired a step-son, now a strapping, nice chap of about 25, who
18 the apple of his eye. This step-son, who lives in Sweden
(Swedish citizen, of course) visits Goering periodically and,
in fact, has his own flat in Goering's home. It 18 also a well-
known fact, even told to me by Jews who knew Goering personally,
that Goering has been greatly opposed to the Jewish persecutions
but has not been strong enough to stop them. Consequently, just
before this step-son went to visit Goering in the latter part of
June, I had him over to my flat and had a very strong talk with
him. I pointed out that Goering would soon be on trial for his
life and, after Amsterdam, Rotterdam, Warsaw, etc., he would not
exactly have many people on the other side of the fence who will
testify as to his beautiful soul. I suggested that both from the
point of view of his own Swedish humanitarian instincts, as well
as his affection for his step-father, he should urge him in the
strongest possible manner to do what he could to ease Jewish per-
secutions in the Balkans, Poland, Thereiedstadt, and elsewhere,
and to urge him to take steps that would permit young children
and old people to get out of Europe. This chap seemed very impres-
sed and said that he would press the matter with Goering to the
best of his ability. I haven't seen him since, but without any-
thing to base it on, I believe that some good has been done.
"I am keeping very careful records of the funds you have
sent me to be used in my discretion, and am now thankful that I
have them. I will be able to account for all of them, and I have
receipts for virtually the full amount. This is also true with
respect to my Baltic operations, where I have been able to get
excellent accounting and receipts against a large proportion of
the expenditures. Out of the funds which you have placed at my
disposal the following are the more important outlays, actual and
proposed:
Regraded Unclassified
188
- 5 -
(A) Wallenberg left in a hell of a hurry with no
instructions and no funds for preliminary expenditures,
such as purchase of easily carried barter articles for
Hungarian relief. I placed 10,000 kronor at his dis-
posal. In order to channel it through an organization
BO I could get a good receipt, I gave it to his Aunt,
Countess Bonde, who is head of the "Committee for Aid
to Belgian Children, earmarked for "Special Hungarian
Relief Activities."
(B) On the basis of several urgent requests that Chief
Rabbi Ehrenpreis received from Bucharest for relief
funds, I gave the Executive Committee for Relief of
European Jews 25,000 kronor. They were able to get
about 12,000,000 lei for this, which will do a lot of
good. The need of Rumanian Jews for food and clothing
is really desperate and it would be impossible to do
enough. Excellent channels are available from Sweden.
(C) I am trying to get 25,000 to Wallenberg through
intermediaries who are in a position to obtain favorable
pengo rates on a satisfactory basis.
(D) I turned over 2,000 kronor to Mrs. Andersen for
"special translating work and other services" with which
she hired a Latvian fishing boat to go over and pick up
20 anti-Nazis in hiding. This seemed a very cheap gamble
and I will know the outcome in a few days.
(E) I informed Count Bernadotte that the War Refugee
Board was very interested in the proposal of constructing
camps for Hungarian Jews, and that we would donate 50,000
kronor to further the program when all details were worked
out. They were most appreciative and it will help push
early action.
(F) I have told Mr. Cedergren's Committee, "Hjalp
Krigeis Offer," that I would place at their disposal
a special fund of 5,000 kronor which can be used to
send food packages to families in concentration camps
of refugees here in Sweden who are penniless and have
no means of sending packages. This will be a strong
morale boost both to these people and their families."
Regraded Unclassified
189
EXCERPTS FROM LETTER OF AUGUST 14, 1944, FROM IVER C. OLSEN,
WAR REFUGEE BOARD REPRESENTATIVE IN STOCKHOLM.
"Since writing the foregoing letter, I had lunch with
the First Secretary of the Swedish Legation in Budapest,
who 18 here for a short while. He is a fine chap and had
many interesting comments to make. He said Wallenberg is
working very hard and doing everything possible, which items
he has also emphasized to the Foreign Office. He considers
the situation in Hungary far from settled but he 1s confident
that the Hungarian Government will continue to ease the Jew-
ish situation 80 long as control is in their hands and not in
German hands. This is, however, the big question. He is very
skeptical as to the possibility of bringing to Sweden the
2,000 odd Jews who, up to now, have been issued Swedish papers.
He stated that both the Hungarians and the Germans had agreed
to provide transit visas (actually the German Legation in
Budapest gave him personally the official assurances), but
later the Germans said these must be a quid pro quo, which
was that the rest of the Hungarian Jews of working age must
be delivered to German labor camps. This chap is positive
that the only real constructive move to be made just now is
to get as many Jews as possible into Swedish camps, and then
extend the Swedish protection to as many others as possible.
I thoroughly agree and that is why I am so anxious to press
the Swedish Red Cross in this matter. He also indicated, and
please keep this as personal, that we should not take without
a grain of salt the hopeful enthusiasm of the I.R.C. man there,
who apparently drinks a lot and has delusions of grandeur, but
very little in the way of practical judgment in approaching
the problem.
"He said that even he did not believe some of the atrocities
until he himself was àn eye-witness. He went over to a brick
factory where they had over 10,000 Jews herded in an area so
small that they were forced to stand up closely packed together
for five days, old people and young children alike, without
any sanitary facilities. He saw them himself standing there,
and also being loaded into box cars, eighty (he said eighty were
counted out very carefully) into each car, after which the doors
were nailed shut. He said many died Just standing in the brick
factory. He also said that young girls of 14 and 15 were being
stolen on the streets, taken into other areas where they had
"war whore" tatooed on their arms. Some of them, young
Hungarian Jewesses of good family, had been observed as far
away as Hamburg. He lamented very much the total lack of
Regraded Unclassified
190
- 2 -
courage among the Hungarian Jews, since they could do so
much to help themselves even when they knew it was only a
matter of a short time before they would be killed. He said
it was very difficult to escape into Rumania or Yugoslavia
because the country was too open and the Jews are too terri-
fied. He mentioned that all Hungarian Jews escaping into
Rumania are greeted with open arms by the Rumanian authorities,
sign long statements as to how badly the Hungarians treated
them, and how well the Rumanians greeted If them. The Rumanians
will produce these after the war.
191
CABLE TO AMEMBASSY, LA PAZ, BOLIVIA
The following message of August 9 has been received from Amembassy,
Madrid:
QUOTE In response to Embassy's representations Foreign Office has
formally expressed willingness of SpanishGovernment to cooperate in bringing
to successful conclusion proposed arrangements for exchange on Spanish terri-
tory of German nationals in Paraguay and Bolivia for persons in German-occupied
territories bearing documentation of those countries but has informed Embassy
orally that it is not yet in receipt of representations on this subject from
Paraguayan and Bolivian Governments whose representatives in Madrid are still
without instructions. UNQUOTE
In view of earlier promises given to you in this respect and reported in
your A-288 of June 27, please urge Bolivian officials to take speediest
action necessary to enable Spain to bring to conclusion said exchange arrange-
ments. In this connection, you may repeat assurances given in Department's
A-221 of June 2 stating that QUOTE In contemplating such exchange negotiations,
it is not expected that the government to which you are accredited will
physically admit any such persons into its territory even on a temporary or
tentative basis. This Government is prepared to take full responsibility for
all arrangements necessary to route these persons to places elsewhere. UNQUOTE
4:25 p.m.
August 31, 1944
BAkzin:ar 8/30/44
Regraded Unclassified
192
CABLE TO AMEMBASSY, HABANA, CUBA
1. R ference is made to Department's A-1229 of July 21. The clarifi-
cation requested therein is still awaited.
2. Amlegation Bern cabled that Julian Gelernter, a Cuban, born on
February 21, 1905, in Warsaw, Poland, has been moved by Germans authorities
from internment camp Clermont. It is believed that German authorities will
consider him a stateless Polish Jew and condemn him to deportation and death.
$1 In view of promises given to you and reported in your #-1294 of June 16,
please endeavor to obtain specific request of Cuban Foreign Office to Swies
authorities to demand for Gelernter and any other persons similarly situated
treatment to which Cuban nationals are entitled.
The assurances given by this Government in Department's Circular
Airgrams of March 31 and April 11 will apply to the case of Gelernter and
all other persons similarly situated,
8
5:00 p.m.
August 31, 1944
BAkain:ar 8/31/44
Regraded Unclassified
193
CABLE TO AMEMBASSY AT LONDON, ENGLAND
The following cable is for Mann from Pehle:
We are transferring ten thousand dollars to you for use at
your discretion in furthering the program of the War Refugee Board.
These funds are not subject to usual government disbursement procedure
and you will be responsible to me alone for their expenditure. You
should, however, keep careful record of expenditure and obtain re-
ceipts where possible.
4:25 p.m.
August 31, 1944
DWhite:dm 8/28/44
Regraded Unclassified
194
FROM: London
Dated: August 31, 1944
Rec'de September 5, 5 p.m.
RESTRICTED
Secretary of State
Washington.
A-1065, August 31, 1944.
Reference is made to Embassy's telegram No. 6664 of
August 17 reporting proceedings of second sitting of Plenary
Meeting of Intergovernmental Committee on Refugees. m
ninth paragraph of this telegram it was stated that nesting
had adopted a resolution to refer study of drawing up form
of travel documents for stateless persons to a commission
of experts to be appointed at invitation of Director by
Goverments of Argentina, Belgium, Brasil, Chile, Cascho-
slovakia, France, Poland, United Kingdom and United States.
In accerdance with this resolution Sir Herbert Emerson,
Director, in a letter to this Embassy dated August 30, has
invited the United States Government to appoint a member to
the comission of experts. He suggests that the person
selected be one who has studied the question or has had
experience of the practical side of the problem. He also
points out that the examination of the subject must have
regard to security considerations and in this connection
suggests that our Government may wish to associate with
its nomber a representative acquainted with the security
aspect.
The Director adds that it is hoped to convene the
commission early in October and that he would therefore
appreciate being informed as seen as cenvenient of the
of the American member and that of his asseciate
should we desire to meminate one.
Instructions are respectfully requested.
WINAMP
Regraded Unclassified
195
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Embassy, London
DATED:
August 31, 1944
NUMBER:
7017
SECRET
Please refer to your 6289 of August 5 concerning
Beckelman's proposal to close Camp Lyautey.
Inasmuch as Camp Lyautey 1s still under the joint juris-
diction of the British and American Governments, (Department's
6456 August 15 to Reed from FEA) Beckelman's proposal must of
necessity be passed upon by the two Governments.
It is the United States Government's view that now would
be a highly inopportune time to close Camp Lyautey. Beckelman's
statement that few newcomers are expected at Lyautey indicates
that he 1a unaware of the Horthy offer (your 5956 of July 27
and our 6096 of August 2). The closing of Camp Lyautey at a
time when the British and American Governments have accepted
the Hungarian proposal to permit certain categories of Jews
to emigrate from Hungary might well prove tragic in its con-
sequences, for in the eyes of the Hungarian Government it might
easily throw open to question the sincerity of the British and
American Governments in accepting the Hungarian Government's
offer. Obviously all possible havens must be held available
for any eventuality that may occur from accepting the Hungarian
Government's offer.
It would be appreciated if you would make known to the
British Government and the IGC the United States Government's
view concerning Beckelman's proposal to close Camp Lyautey at
this time. This cable has been cleared with the Department,
FEA and WRB.
HULL
Miss Chauncey (For the Sec'y), Abrahamson, Akzin, Cohn, DuBois, Drury, Friedman,
Gaston, Hodel, Laughlin, Leaser, Mannon, Marks, McOormack, Pehle, Sargoy,
Standish, Weinstein, Cable Control Files.
Regraded Unclassified
196
PARAPHRASE OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Embassy, London
DATED:
August 31, 1944
NUMBER: 7035
CONFIDENTIAL
You are informed that Mann is departing for London
today for a temporary sojourn to inquire into problems
regarding refugee matters.
Foregoing has reference to Department's cable of
August 25, 1944, No. 6809.
HULL
WRB:MMV:KG
Paraphrase:
DCR:VAG:MLM
9/5/44
Regraded Unclassified
197
CABLE TO AMERICAN LEGATION, TANGIER, FROM WAR REFUGEE BOARD.
Reference Department's no. 97, July 20, and your no. 221,
July 25. Please advise whether Mrs. Reichman has received any
information concerning possibility of delivery of food parcels
to Camp Satoraljaujhily in Hungary.
10:30 a.m.
August 31, 1944
FH:lab 8/25/44
Regraded
198
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
Amalgation, Tangier
DATED:
August 31, 1944
NUMBER:
122
SECRET
FROM WAR REFUGEE BOARD
Reference Department's no. 97, July 20, and your no. 221, July 25
Please advice whether Mrs. Reichman has received any information con-
cerning possibility of delivery of food parcels to Camp Satoraljaujhily
in Hungary.
HULL
Miss Chauncey (For the Sec'y), Abrahamson, Akzin, Cohn, DuBois, Drury, Friedman
Gaston, Hodel, Laughlin, Lesser, Mann, Mannon, Marks, McCormack, Pehle, Sargoy,
Standish, Weinstein, Cable Control Files.
Regraded Unclassified
199
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Consulate Generalyoderusalem
TO:
Secretary of State, Washington
DATED:
August 31, 1944
NUMBER:
123
CONFIDENTIAL
With reference to cable No. 84 of June 26, for first
seven months of 1944 the total Jewish immigration to Palestine was 9348.
5290 from Europe were included in this figure. As of July 31, state of
white paper quota was as follows: Vacancies amounted to 18,000 against
which there were approximately 12,000 commitments, leaving approximately
6000 actual vacancies. The 12,000 commitments consisted of approximately
5000 for unused past quotas (including 2000 reserved provisionally for
wives of soldiers, deserters from armies REC), 2000 reserved for next
sixty days for persons escaping from Rumania, and 5000 certificates
allotted to protecting power for veteran Zionist party members. Individuals
from liberated areas and safe countries, including North Africa, Portugal
and Spain allowed to onter only in unusual separate instances approved in
Jerusalem, although refugees continue to be allowed to enter without
limitations as to numbers through Turkey. is Jewish Agency undorstands Ador.
Government may return Yominito refugoes to Yemon unloss provision is made
for their upkeep (which the Joint Distribution Committee has arranged for
up to this time), the Jowish Agency continues to urge allotment covering
such rufugees now in Aden. The Jewish Agency has beon advised by Joint
Distribution Committoo that after September 3, it will be unable to con-
tinuo.
20,000 illegal immigrants and 37,000 legal immigrants
were charged against quota of 75,000 to July 31.
PINKERTON
DCR:GPW 9/2/44
Miss Chauncey (for the Soc'y), Abrahamson, Akzin, Cohn, DuBois, Drury,
Friedman, Gaston, Hodel, Laughlin, Lesser, Mannon, Marks, McCormack, Pohlo,
Sargoy, Standish, Weinstein, Cable Control Files
4:25 p.m.
August 31, 1944
200
CABLE TO AMEMBASSY, ASUNCION, PARAGUAY
1. Reference is made to previous communications relative to Jewish
victims of Nazi oppression holding Latin-American passports.
The following message of August 9 has been received from Amembassy, Madrid:
QUOTE In response to Embassy's representations Foreign Office has formally
expressed willingness of Spanish Government to cooperate in bringing to success-
ful conclusion proposed arrangements for exchange on Spanish territory of
German nationals in Paraguay and Bolivia for persons in German-occupied ter-
ritories bearing documentation of those countries but has informed Embassy
orally that it is not yet in redeipt of representations on this subject from
Paraguayan and Bolivian Governments whose representatives in Madrid are still
without instructions. UNQUOTE
In view of earlier promises given to you in this respect and reported in
your A-139 of April 22, in your A-148 of April 29, and in enclosure to your
2163 of June 8, please urge Paraguayan officials to take speediest action
necessary to enable Spain to bring to conclusion said exchange arrangements.
In thiblconnection, you may repeat assurances given in Department's A-118 of
April 11 stating that QUOTE In contemplating such exchange negotiations, it is
not expected that Paraguay will physically admit these holders of Paraguayan
passports into Paraguay even on a temporary or tentative basis. This Govern-
ment is prepared to take full responsibility vis-a-vis Paraguay for all arrange-
ment necessary to route these persons to places outside Paraguay. UNQUOTE
2. The following is the substance of a message received from Amlegation
Bern:
QUOTE I recommend that you urge the Paraguayan Government in particular
(see our cable of July 14, 1944, No. 5418) to give the Spanish Government
authority to extend through its Embassy at Berlin the shortly expiring
Paraguayan passports which persons, especially those in Bergen Belsen camp,
are holding. Several Jewish organizations and individuals have addressed to
me desperate appeals calling to our attention the fact that Paraguayan pass-
ports held by many in Bergen Belsen were issued originally in 1942 and are
due to expire soon.
with respect to the general question of representation by Spain of
Paraguayan interests in German territory, it is claimed by Sternbuch of Union
of Orthodox Rabbis that a telephone conversation with the Spanish Embassy in
Berlin in mid-July revealed that even at that late date that Embassy had no
knowledge of removal from Vittel of any persons holding documents issued by
Paraguay. While we have not confirmed this fact, it seems fairly clear that
the Spanish have never protected with much despatch or energy the holders of
Paraguayan documents who are in German territory. UNQUOTE
Please take appropriate action.
3. Appreciation is expressed at information contained in your 2302 of
July 21. This information is being forwarded to Amembassy Madrid for support-
ing action.
BAkzin:ar
8/30/44
Regraded Unclassified
201
CABLE TO AMBASSADOR NORWEB FOR DEXTER FROM PEHLE
The Board has given consideration to the amount of 22,604.90
escudos advanced by you to purchase furniture for the reception
center at Pasco d'Arcos. Since it appears probable that there will
be little or no rescue activity to be carried out from Portugal in
the future, the Board is anxious to get its accounts in shape. Ac-
cordingly, you should request repayment of the advance from the
Lisbon representative of the World Jewish Congress, and upon his
repayment, confirm that title to such furniture is vested in him.
Please discuss this matter with the local representative of
the World Jewish Congress and advise as soon as possible whether
he is willing to repay the above-mentioned advance.
THIS IS WRB CABLE TO LISBON NO. 85
9:15 a.m.
August 31, 1944
JHMann:JWP:dg
8/30/44
Regraded Unclassified
202
CABLE TO AMBASSADOR NORWEB AND DEXTER, LISBON, PORTUGAL
A communication from Amembassy, Caracas, August 22, states
that the Venezuelan Government has authorized its legation at Lisbon
to visa the passports of Jewish refugees, especially children, who
are traveling to the American continent, even though they may not be
proceeding to Venezuelan territory.
You may find the foregoing helpful in inducing Portuguese
authorities to grant large numbers of transit visas to Jews in
Hungary and other German-controlled territories. Please consult
Venezuelan Legation and Portuguese authorities and advise of op-
portunities in this respect.
THIS IS WRB CABLE TO LISBON NO. 86
4:25 pila
August 31, 1944
BAkzin:ar 8/30/44
Regraded Unclassified
203
AIR MAIL
No. 914
Embassy of the
United States of America
Lisbon, August 31, 1944
CONFIDENTIAL
Subject: Granting of Visas for Certain Categories of
Aliens from Macny Countries
The Honorable
The Secretary of State
Washington
Sir:
I have the honer to transmit herewith a copy of the Ambansy's
Note Verbale, No. 515, August 31. 1944, to the Ministry of Foreign
Affairs on the above subject. This Note vas sent in accordance
with the Department's telegram No. 2332 of August 24. It will be
observed that in the Note the Ministry has not been asked to advise
foreign governments of Pertugal's willingness to allow persons
falling within these categories to enter Pertugal. It seemed
wisest to obtain the permission first and them to request the
Portuguese Government to notify the governments with which the
United States 10 at war.
The substance of the Department's telegram has been made avail-
able to the Censular Section of the Habassy and the provisions for
the issuance of the visas in question theroughly discussed. All
necessary arrangements are being made in accordance with instruc-
tiens and the Mulassy awaits notification by telegram of the names
of persons for when petitiens have been filed.
Representatives of private agencies in Pertubal have also been
apprised of the contents of the telegram and will inform the Embassy
if they know of any individuals coming under the categories men-
tiened who enter Pertugal. If the Fabassy learns of any such persons,
either directly or through the private agencies, it will, as requested,
notify the War Refugee Board immediately. The Embassy will advise
the Department and the Beard of any developments that may occur in
connection with this pregram.
It is assumed that the Var Refugee Beard vill be interested
in this despatch and the enclosed copy of the Note Verbale, and
if the Department perceives no objection, it 10 requested that
they be transmitted to the Board.
Respectfully yours,
For the Ambassador:
Charles E. Dickerson, Jr.
Enclesure: Copy of Note
First Secretary of the Habassy
RD:ew
Verbale No. 515
Regraded Unclassified
204
Enclesure to despatch No. 915, August 31, 1944, from
Regraded Unclassified
the Fabassy at Lisben.
Copy of Nete Verbale No. 515
The Habasay of the United States of America presents its
compliments to the Pertuguese Ministry of Foreign Affairs and
has the henor to inform the Ministry that the United States
Government has authorized its Consular officers in Portugal to
issue immigration visas to aliens who are the parents, husbands,
wives or unmarried miner children of American citizens and to
alien vives and unmarried minor children of aliens who have been
lawfully admitted into the United States for permanent residence.
These arrangements are, of course, subject to the ordinary res-
trictions of the immigration laws of the United States.
The Sviss Government 10 being requested to advise the
governments with which the United States is at var, particularly
Hungary and Germany, that American Consular efficers in Portugal
and other neutral countries have been authorized to issue immigra-
tion visas to the above classifications of individuals who have
been in an area controlled by Germany or any of Germany's allies.
provided that such individuals are able to present themselves to
American Consular officers and are found not to be disqualified
for a. visa.
The Habassy therefore requests the Ministry that it be
kind enough to use its good effices is arranging for the entry
into Pertugal of persons falling within the categories described
above. The Embassy assures the Ministry that any such persons
who may be admitted will be adequately maintained and that any
who may be found not to be qualified for the issuance of United
States immigration visas will be evacuated as promptly as possible.
Similar requests have been directed. to. the Governments of Turkey.
Sweden, Switzerland and Spain.
This action of the United States Government is made solely
for humanitarian purposes and the Mabassy is confidently relying
on the generesity of the Government of Pertugal to assist in
every way possible.
Lisbon, August 31, 1944.
205
GEM
August 31, 1944
Distribution of
true reading only by
8 p.m.
special arrangement.
(SECRET w)
AMEMBASSY,
LISBON.
2391
The following for Dexter from Pehle is WRB 85.
The Board has given consideration to the amount of
22,604.90 escudos advanced by you to purchase furniture
for the reception center at Padco d'Arcos. Since it
appears probable that there will be little or no rescue
activity to be carried out from Portugal in the future,
the Board is anxious to get its accounts in shape. Ac-
cordingly. you should request repayment of the advance
from the Lisbon representative of the World Jewish
Congress, and upon his repayment, confirm that title to
such furniture is vested in him.
Please discuss this matter with the local repre-
sentative of the. World Jewish Congress. and advise as
soon as possible whether he is willing to repay the
above-mentioned advance.
HULL
(GLW)
WRB:MMV:KG
WE
8/31/44
Regraded Unclassified
206
XEM - 659
Lisbon
Distribution of true
reading only by special
Dated August 31, 1944
arrangement. SECRET W)
Rec'd 6:44 p.m.
Secretary of State,
Washington.
2691, August 31, 6 p.m.
THIS THE 171. FOR RAYMOND BRAGG, HOSTON, FROM
ELISABETH DEXTER UNITARIAN 323
Seriously distrubed nonreceipt August remittance
for Spanish Republicans in Portugal. This fund now 81200
overdrawn and current expenditures over 3000 per month as
you will see from monthly reports. Until these people
actually leave for Mexico, need will increase although
after that occurs will be less. Over one hundred individuals
face possible starvation and imprisonment, some death,
if returned to Spain, unless funds are forthcoming.
NORWEB
WFS JMS
Regraded Unclassified
207
CABLE TO AMEMBASSY, MADRID, SPAIN
1. Reference is made to your 2753 of August 9. Information therein
contained is being communicated to Amembassy, Asuncion.
2. The following is the substance of a message received from Amlegation
Bern:
QUOTE With respect to the general question of representation by Spain
of Paraguayan interests in German territory, it is claimed by Sternbuch
of Union of Orthodox Rabbis that a telephone conversation with the Spanish
Embassy in Berlin in mid-July revealed that even at that late date that
Embassy had no knowledge of removal from Vittel of any persons holding
documents issued by Paraguay. While we have not confirmed this fact, it
seems fairly clear that the Spanish have never protected with much despatch
or energy the holders of Paraguayan documents who are in German territory.
UNQUOTE
Please make energetic representations with a view to obtain more satis-
factory attitude of Spanish officials in Madrid and in Berlin in discharge
of this humanitarian duty voluntarily undertaken by Spain.
3. As a specific example, Amlegation Bern cabled that Swiss Legation
Berlin referred to Spanish Legation Berlin the case of Josef Rappaport or
Jose Frappaport, a Paraguayan, born on July 28, 1910 in Sanok, Poland, and
moved by German authorities from internment camp Clermont. Please ascertain
what Spanish officials in Madrid and Berlin are doing in his case and in
that of other Jewish holders of Paraguayan documents.
4. Amembassy Asuncion reports that Paraguayan Government has requested
Spanish Government to take appropriated steps in its name with a view to
permitting commissioners of Intercross to visit concentration camps xx in
German-controlled territory in which persons claiming Paraguayan nationality
are held and to which Intercross had in the past no or little access. Please
take appropriate action in support of Paraguayan request.
4:25 p.m.
August 31, 1944
BAkzin:ar
8/26/44
Regraded Unclassified
208
CABLE TO MINISTER HARRISON AND MCCLELLAND, BERN, SWITZERLAND
1. Reference is made to your 4223 of July 3 section four (F).
Amembassy Port-au-Prince informs Department that instructions regarding
status and treatment of holders of Haitian documents in German-controlled
territory were transmitted by Haitian government to Bern on July 31.
2. Reference is made to your 5398 of August 19. Information con-
tained therein is appreciated and steps are being taken in Asuncion and
Madrid.
THIS IS WRB CABLE TO BERN NO. 154
9:15 a.m.
August 31, 1944
BAkzin:ar
8/26/44
Regraded Unclassified
209
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
Amlegation, Bern
DATED:
August 31, 1944
NUMBER:
3005
SECRET
FOR MCCLELLAND, BERN, SWITZERLAND.
1. Reference is made to your 4223 of July 3 secrion four (F).
Amembassy Port-au-Prince informs Department that instructions regarding
status and treatment of holders of Haitian documents in German-controlled
territory were transmitted by Haitian government to Bern on July 31.
2. Reference is made to your 5398 of August 19. Information con-
tained therein is appreciated and steps are being taken in Asuncion and
Madrid.
THIS IS WRB CABLE TO BERN NO. 154
HULL
Miss Chauncey (For the Sec'y), Abrahamson, Akzin, Cohn, DuBois, Drury, Friedman,
Weinstein, Cable Control Files
Gaston, Hodel, Laughlin, Lesser, Mannon, Marks, McCormack, Pehle, Sargoy, Standish
Regraded Unclassified
210
CABLE TO BERN
FROM WAR REFUGEE BOARD TO HARRISON
Please deliver the following message to Bishop Marius
Besson, Fribourg, from Monsignor O'Boyle, Executive Director
of the War Relief Services - National Catholic Welfare Conference:
"KINDLY FURNISH US MORE DETAIL ON NEEDS POLISH
REFUGEES HUNGARY AND FRANCE ESPECIALLY FUNDS REQUIRED
PER MONTH STOP ALSO IDENTIFY JANUSKOWSEI IN RELATION
TO REFUGEES AND HIS COOPERATION WITH SWISS CATHOLIC
MISSION STOP RESPECTS"
THIS IS WRB CABLE TO BERN NO. 155.
2:45 p.m.
August 31, 1944
FH:lab 8/31/44
Regraded Unclassified
211
CABLE TO MINISTER HARRISON AND MCCLELLAND, BERN, SWETZERLAND.
The following message dated August 22 has been received from
Amembassy, Caracas:
QUOTE I have just been informed in strict confidence by
the Foreign Office in response to representations made under in-
struction above cited that the Venezuelan Government has requested
the Swiss Federal Political Department to extend the protection of
Venezuelan interests to Hungarian territory and other countries
of Central and Eastern Europe, for the purpose of aiding the bearers
of Venezuelan passports in those regions. UNQUOTE
THIS IS WRB CABLE TO BERN NO. 156
4:25 p.m.
August 31, 1944
BAkzin:ar 8/30/44
Regraded Unclassified
212
This telegram must be
August 31. 1944
paraphrased before being
communicated to anyone
6 p.m.
other than a Government
agency. (RESTRICTED)
RESTRICTED
The President's Var Relief
Control Board,
Washington Building.
Washington, 5, D. c.
AMLEGATION
BERN
8001
Department would appreciate being brought up to date
on activities of Swiss Refugee Advisory Commission,
formation of which was reported your 1130 February 24.
It would also be helpful to the Department to have
your evaluation of the Commissions's effectiveness in
coordinating and implementing the work of the various
organizations handling refuges matters in Switzerland.
HULL
(EDK)
SWP:VHN:amg
8-29-44
WRB
CE
Send at request of War Relief Centrol Board.
Mise Chauncey (for the Sec'y) Abrahamson, Cohn. DuBois, Friedman,
Aksin, Drury. Gaston, Hodel, Laughlin, Lesser. Mannon, Marks,
McCormack, Pehle, Sargoy. Standish, Weinstein, Cable Control Files
213
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Bera
TO:
Secretary of State, Washington
DATED:
August 31, 1944
NUMBER:
5689
SECRET
In connection with first paragraph of Department's mess-
age of July 13, No. 2407, the following is contained in notice
from Swies dated August 26.
The difficulties encountered in efforts to safeguard
bearers of identity documents issued in name of Latin American
countries were described in recent report on situation in
Germany concerning such individuals from Swiss Legation Berlin.
In particular, it seems that officials of Germany are
starting to discriminate between passports issued for the
purpose of safeguarding Jows against steps which might be taken
against them and those held by individuals having citizenship
of nations in question by birth.
The German authorities refuse right of interested in-
dividuals to claim Latin American citizenship not because of ex-
piration validity of passports but because antecedents of Jews
involved and type of identity papers which they have constitute
adequate evidence that they obtained these papers "ad hoo" in
the view of such authorities.
The continuation of these passports "ad hoc" is not the
essential matter in the opinion of the Swiss Legation. They
express the belief that it is fundemental that information as
to the presence of these Latin American nationals who are not
listed on its registers be furnished the Legation in some way.
Insemuch as holders of identify papers of this nature in many
instances have not been reported to Swiss Legation, in the
event German officials should ask if particular individual is
among those protected by it, it might happen that the Swiee
Legation would be unable to supply data concerning nationality
claimed by interested individual.
In order to expedite its representations to Government of
Germany, Swiss Legation suggests that lists as complete as
possible of bearers of these papers be prepared by govern-
ments in whose name identity papers are issued, accompanied
with statement that these individuals are recognized as their
citizens by these governments.
HARRISON
DCR:GPW:CR
9/1/44
Regraded Unclassified
214
Bern
HHC-612
Dated August 31, 1944
This telegram must be
paraphrased before being
Rec'd 4:40 p.m.
communicated to anyone
other than a Govermment
Agency. (RESTRICTED)
Secretary of State,
Washington.
5697, August 31. 2:00 p.m.
FOR WRB FROM MCCLELLAND
For Lee Mulman, American OSE, 24 Test Fertieth
Street, New York, from Gurvitch:
"Undertaking all neasures resetablish our eargan-
isation France along previous lines with branch effices
throughout the country. Minkeveki's address 130 Boule-
vard Ment Parnasse, Paris. Dr. Janou, President 'Save
The Children" erganization 14 Orheistrada. He is ready
to transferm his erganisation into Rumanian OBE. Pas-
sibilities enigration children from Humgary uncertain
and neeting serious difficulties. New relief possibili-
ties urgently require fresh funds outside jeint allecations.
Please cable." 2605.
HARRISON
JT
Regraded Unclassified
215
MAE-730
PLAIN
Barn
Dated August 31, 1944
Rec'd 9:55 p.m.
Sedretary of State
Mashington
5700, thirty-first
FOR WRB FROM MCCLELLAND
For Leland Rex Robinson American Committee for
Christian Refugees from Adolf Freudenberg:
"Please convey our warn thanks to Methodists their
generous gift for Hungarian Jews. Major portion used by
special Hungarian Reformed Church committee, minor portion
for Hungarian Jems in Switserland. In view destitution
those people additional funds offered would be most
welcome." 9.55
HARRISON
JT
Regraded Unclassified
216
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Bern
TO:
Secretary of State, Washington
DATED:
August 31, 1944
NUMBER:
5707
CONFIDENTIAL
MCCLELLAND SENDS THE FOLLOWING FOR THE WAR REFUGEE BOARD.
In your discretion please transmit the following from
Bojanic and Cukovac to General Velebit, representative of the
Yugoslav army of National Liberation in London.
Two emissaries representing the Committee of National
Liberation in Switzerland are departing for France to organize
return of civilian and military Yugoslav refugees who wish to
fight against the enemy. Emissary Latinovic, accompanied by
an officer is charged with arranging transit of 1500 men from
France. Latinovic and companion will haveto go on as far as
Bari. Kindly support their action and advise Subasic asking
for his personal aid.
HARRISON
DCR:VAG:MIM
9/2/44
Miss Chauncey (For the Sec'y), Abrahamson, Aksin, Cohn, DuBois, Drury, Friedman
Gaston, Hodel, Laughlin, Lesser, Mann, Mannon, Marks, McCormack, Pehle, Sergoy,
Standish, Weinstein, Cable Control Files.
Regraded Unclassified
217
KD-817
Ankara
This telegram must be
paraphrased before being
Dated August 31, 1944
communicated to anyone
other than a Government
Rec'd September 1, 6:35 a.m.
agency. (RESTRICTED)
Secretary of State
Washington
1600, August 31, 1 p.m.
FOR PEHLE WRB FROM HIRSCHMANN.
Ankara's No. 145.
It is now reported on reliable authority that the
Bulgarian anti-Jewish laws have been set aside by a
decree of the regents. While this decree must be ap-
proved by Parliament, the Bulgarian authorities decided
not to press the issue with Parliament which was re-
cently in session as that body had originally passed the
decrees. When the new Parliament meets, the decrees
abrogating the anti-Jewish laws will be confirmed pro
forma.
A commission has been appointed in the Ministry
/
of Finance to study the property question with the view
to restoration to the original owners 80 far as it is
possible.
STEINHARDT
BB
Regraded Unclassified
218
KD-816
Ankara
Distribution of true
reading only by special
Dated August 31, 1944
arrangement. (SECRET-W)
Rec'd September 1, 6:36 e.m.
Secretary of State
Washington
1601, August 31, 2 p/m
FOR PEHLE WRB FROM HIRSCHMANN
Ankara's No. 146.
WRB. Nicolas von Farman is completely unknown in
informed circles in Istanbul and his name does not appear
emong more prominent persons associated (REDEPTEL 734,
August 23) with Hungarian Oxechoslovakian Industrial
Bank which closed in 1939. I recommend that inquiries
be made via Switzerland.
STEINHARDT
BB
Regraded Unclassified
219
This telegram must be
Ankara
persphrased before being
communicated to anyone
Dated August 51, 1944
other than a Government
agency. (RESTRICTED)
Rec'd. 6157 a.m., September 1
Secretary of State,
Washington.
1602, August 31, 3 p.m.
FOR PEHLE WRB FROM HIRSCHMANN ANAKRA'S NO. 147
Referring to the Embassy's 1472, August 11.
Reports reaching us indicate that under renewed
German pressure there is a possibility that deportations
from Hungary will be resumed. It is suggested that
warnings similar to those emanating from the board
and other sources, which are reported to have had
a salutary effect, be urgently and strongly repeated.
STEINHARDT
WSB
Regraded Unclassified
220
NOT TO BE RE-TRANSMITTED
SECRET
OPTEL NO. 284.
Information received up to 10.0 a.m. 31st August, 1944,
1. Naval.
Carrier-borne aircraft again attacked TIRPITZ 29th in
Alten Fjord; ship was hidden by smoke and results not seen,
Subsidiary targets in the Hammerfest area were attacked by
fighters. During period 21st to 24th, 4 hits and 1 possible
with 500-pound bombs on TIRPITZ were claimed and 2 possibles
with 1000-pound bombs. Each time ship hidden by smoke.
Other objectives attacked included aircraft and hangars,
R.D. stations and shipping, 7 aircraft missing in all. On
29th/30th, one of H.M. frigates and one of H.M. destroyers
engaged convoy of L.C.T's and R-boats moving North from Fecamp.
Shadowing convoy to Dieppe, the frigate drove off 3 E-boats
onstward, herself going under heavy fire from the shore. By
29 D plus 83, number of men landed Normandy reached 2 million,
of whom approximately 800,000 British and 1,200,000 U.S.
Entrance to Toulon Harbour blocked, but can be cleared, 6 berths
will be available after repairs. On 27th, a fishing vessel
captured containing 50 U-boat officers and men attempting escape
from Toulon; 18 prisoners also taken from 2 motor boats.
2. Military.
France. U.S. troops have recaptured Rheims and are
Bast of Marne between Vitry and Chalons. All bridgoheads
between Paris and Rouen linked up and now present a continuous
front. United Kingdom troops have made substantial advances
and are approaching Beauvais and Gournay. Canadians have made
good progress North of the Seine, South of the river remaining
German detachments liquidated.
Southern France. Heavy fighting batween Loriol and
Livron where U.S. troops have inflicted heavy casualties on
Germans trying to cross river Drome with pontoon bridges.
U.S. troops are mopping up Montelimar and have gained further
ground North-East of the town. French troops West of Rhone
have reached Bagnols and Uzes.
Italy. 8th Army has reached River Foglia on a broad
front and patrols have crossed. Our troops also continue to
make progress North of Bibbiena and North of Pontassieve.
Russia. Russians have captured Ploesti and are
within 20 miles of Bucharest.
3. Air.
Western Front. 29th/30th. Stettin: 1341 tons
dropped, some cloud, marking punctual and accurate, good
bombing concentration, fierce fires reported. Many fighters
over Denmark and Stettin, 2 enemy airci ift claimed destroyed
Koenigsberg; 493 tons, moderate cloud, marking fairly well
placed and fair concentration achieved. Several large fires,
fighters active, 38 aircraft confirmed missing.
30th. U.S. heavy bombers dropped 495 tons on 8
launching sites Pas de Calais, 471 on Bremen and 616 on Kioli
all aircraft returned safely. 30 medium bombers attacked
a battery near St. Malo, and 104 Spitfires operated in the
Calais/Ghent area.
30th/31st. 52 aircraft despatched, including 36
Mosquitos Frankfurt.
Regraded-Undlassified
221
Central Europe. On 29th, heavy bombers from
Mediterranean dropped 381 tons on railway centre and
industrial area Moravaka-Ostrava, 107 on 2 oil refineries,
and 475 on a railway bridge in Hungary and railway centres
at Szeged and Szolnok. 14 bombers missing. 30th.
96 Mustangs attacked airfields, destroying 12 enemy
aircraft on the ground.
Italy. 29th. Heavy bombers dropped 59 tons
Salcano and 118 railway bridge Ferrara, Lightnings bombed
a railway bridge and destroyed 6 locomotives and 5
grounded aircraft. 751 other bombers attacked dumps
communications and positions in Gothic Line.
Yugoslavia.
On 29th and 30th, heavy bombers
dropped 305 tons on railway bridges.
4. Home Security.
During 24 hours ending 0600 31st, 44 flying bombs
plotted.