Volume 771, September 9 – September 14, 1944

DIARY Book 771 September 9-14, 1944 - A - Book Page American Forum of the Air See Post-War Planning: Bretton Woods Conference - C - Chase National Bank See Foreign Funds Control Cherwell, Lord (formerly Professor Lindemann) See Post-War Planning: Germany (Quebec Conference) China Kung letter concerning reimbursement for United States military expenses - 9/9/44 771 87 a) Treasury reply - - 9/20/44: See Book 773, page 93 b) War Department (Major General Clay) reply - 9/20/44: Book 773, page 97 Kunming and Chengtu trip reported by Friedman - 9/14/44. 232 a) Communist-Kuomintang relations discussed Coast Guard Plane for HMJr's use: See Morgenthau, Henry, Jr. Cuba See Post-War Planning: Bretton Woods Conference - F - Financing, Government Security Market - current developments in: Haas memorandum - 9/9/44 63 War Savings Bonds: Gehle, Frederick W., appointed chairman of New York Committee - 9/12/44 146 Ford Motor Company See Foreign Funds Control Foreign Funds Control Ford Motor Company, Chase National Bank, J.P. Morgan & Co.: Privileged position in France during German occupation indicates need for investigation of activities of subsidiaries of large American firms - 9/12/44 142 a) HMJr agrees 141 b) Saxon suggested as Treasury representative - 9/19/44: See Book 772, page 132 Friedman, Irving S. See China - G - Gehle, Frederick W. See Financing, Government: War Savings Bonds Germany Quebec Conference: See Post-War Planning (Germany) Gregory, Nicholas P. (Philadelphia Inquirer) See Morgenthau, Henry, Jr. - L - Book Page Latin America Cuba: See Post-War Planning (Bretton Woods Conference) Lend-Lease U.S.S.R. Availability of cargo for September - 9/9/44 771 89 Soviet Aid Program: Report on status as of June 30 - 9/9/44 91 July 31 - 9/15/44: See Book 772, page 39 September 11 - - Crowley resume: Book 772, page 275 United Kingdom Federal Reserve Bank of New York statement showing dollar disbursements, week ending August 30, 1944 - 9/9/44 94 Quebec discussion (FDR and Churchill) - 9/14/44 223 a) Cherwell's letter to HMJr clarifying phrase "or sold for profit" - 9/16/44: Book 772, page 61 1) Discussion by Treasury group - 9/19/44: Book 772, page 218 2) Discussion by HMJr, Hull, and Stimson - 9/20/44: Book 773, page 5 Lindemann, Frederick Alexander (Lord Cherwell) See Post-War Planning: Germany (Quebec Conference) - M - Montoulieu, Edouardo I. (Minister of Finance, Cuba) See Post-War Planning: Bretton Woods Conference Morgan, J. P., & Company See Foreign Funds Control Morgenthau, Henry, Jr. Gregory (Philadelphia Inquirer) story "HMJr May Head Allied Rescue of Jews" and Fred Smith memorandum thereon - 9/9/44 61 Coast Guard plane approved by Forrestal - 9/14/44 228 - 0 - Odegard, Peter H. Letter from London concerning experiences in European Theatre of Operations, and HMJr's reply - 9/9/44 69 Oswego, New York, Emergency Refugee Shelter See War Refugee Board - P - Pehle, John W. See Post-War Planning: Germany - P - (Continued) Book Page Post-War Planning Bretton Woods Conference Cuba: FDR-Minister of Finance Montoulieu exchange of correspondence, following Harvard 1904 class reunion - 9/9/44 771 79 American Forum of the Air: Reprints of broadcast sent to HMJr by Granik - 9/14/44 229 Germany: Treasury Plan Quebec Conference Plan discussed by group - 9/9/44 1 a) McConnell post-surrender program dealing with German industry 17 1) "Reparations mean a powerful Germany" 18 2) "Economic restitution by Germany to United Nations" 20 3) "German Militariem cannot be destroyed by destroying Naziem alone" 22 4) "It is a fallacy that Europe needs a strong industrial Germany" 23 5) "How British Industry would benefit by proposed program" 26 6) "Why the resources of the Ruhr should be locked up and the equipment removed" 27 7) "Controls over development of German economy" 28 8) "What to do about German re-education" 29 FDR-HMJr-Stimson-Hull-Hopkins conference reported to Treasury group - 9/9/44 41 a) Trusteeship for Ruhr, Saar, and Kiel Canal suggested by FDR b) Partitioning immediately favored by FDR c) "Fallacy that Europe needs strong industrial Germany" - idea approved by FDR 42 d) Agricultural status also approved by FDR e) Hull reiterates approval of entire Treasury plan f) Stimson's memorandum giving reaction to discussions thus far 43,50 HMJr summoned to Quebec by FDR - 9/12/44 140 Cherwell, Lord (at Quebec with Churchill): Goodhart's evaluation of - 9/14/44 220 a) See letter dated 9/16/44 clarifying "or sold for profit" in Lend-Lease discussion of FDR and Churchill: See Book 772, page 61 1) HMJr explains that Lord Cherwell dictated afterward from memory and FDR and Churchill initialled: Book 773, page 38 2) FDR thanks HMJr for copy of Cherwell memorandum - 9/30/44: Book 777, page 188 b) Assists HMJr to understand Churchill: Book 772, page 210 - -P- - (Continued) Book Page Post-War Planning (Continued) Germany: Treasury Plan (Continued) Pehle memorandum supporting and enlarging upon present Treasury plan - 9/12/44 771 144 Surplus Property, Disposal of: Surplus War Property Policy Board - monthly status report, July 1944, transmitted by Olrich - 9/11/44 116 - Q - - Quebec Conference See Lend-Lease: United Kingdom If Post-War Planning: Germany - 8 - - Saxon, James J. See Foreign Funds Control Security Market See Financing, Government Surplus War Property Policy Board See Post-War Planning: Surplus Property, Disposal of - U - - U.S.S.R. See Lend-Lease - W - War Refugee Board Report for week ending September 2 - 9/12/44 171 # 9 - 9/20/44: See Book 773, page 106 II 16 - 9/26/44: Book 775, page 191 # 23 - 10/2/44: Book 778, page 37 Oswego, New York, Emergency Refugee Shelter: War Refugee Board approves recruting of farm labor in real emergencies - 9/13/44 198 Mrs. FDR-Mrs. HMJr visit discussed by HMJr, Abrahamson, and Pehle - 9/25/44: Book 774, page 161 1 September 9, 1944 9:55 a.m. Operator: New York 18 ready with the call and I'd like to give you the Government regulations. HMJr: Okay. Operator: In the interest of National Security you are requested to refrain from discussing the departure or arrival, name or location of ships, military topics of any kind, technical weather information, or any information which might be of aid or comfort to the enemy. Thank you, sir. HMJr: All right. Go ahead. Hello. Hello. Hello. Operator: Go ahead, sir. HMJr: Hello. Operator Overseas: Go ahead, please. L.C. Aarons: Hello. HMJr: Hello. A: Mr. Secretary. HMJr: Go ahead. A: I have to repeat the censorship warning that the enemy is recording your conversation and will compare it 'with previous information in its possession. - Great discretion is necessary and any indiscretion will be reported by censors to the highest authority. HMJr: Okay. A: Mr. Secretary, I wanted to know whether you knew of the request that I have received to return. HMJr: What's that? A: I wanted to know whether you knew about the request that I had received to return home. 2 - 2 - HMJr: No, I know nothing about it. A: You do not? HMJr: No. A: It comes from Hannegan. HMJr: What's that? A: From Hannegan. HMJr: Hannegan? A: Yes. HMJr: What about Hannegan? A: I received a request to return home from him and I wanted to know whether you knew about it. HMJr: Well, who is this talking? A: Aarons in London. HMJr: Aarons, Hannegan asked you to return? A: Yes. And the Chief said that you knew about it. HMJr: Hello. Well .... A: Would you ask him about.it, Mr. Secretary? HMJr: I don't know why they asked you. The person they wanted to come back is Isbey -- Frank Isbey. A: Oh, good Heavens! Well, then the whole thing has been a mistake. HMJr: Well, how did they ever get you? A: It was addressed to me. HMJr: What? 3 - 3 - A: It was addressed to me. HMJr: Well, don't they mention Frank Isbey? A: No, sir, they do not. HMJr: Well, that's the stupidest thing I've ever heard of. A: Well, do you want me to pass this on to Frank? HMJr: Yeah, the thing is it's Isbey that they want. A: I see. Well, I couldn't understand it. HMJr: Now, do they explain why they want Isbey? A: Yes, sir, but Isbey's name is not mentioned in the telegram. HMJr: Well, I can't understand -- well, anyway, it's Isbey that they want, and do they say in the telegram why they want him? A: Yes, sir. HMJr: Do you know where Isbey 1s? A: Yes, I can reach him right away. HMJr: What? A: I can get hold of him. HMJr: Well, you get hold of Isbey and as long as I'm talking to you, you tell him that I hope that he will do it. A: Righto. I'll do that. HMJr: Well, the telegram's an open telegram -- what does it say? A: It says that you and Jones, McCloy and Crowley join him -- join the President in requesting that you return at once to accept chairmanship of the Finance Committee .... HMJr: I see. Regraded Unclassified 4 - 4 - A: .... for the Democratic National Campaign. HMJr: Yeah. A: And I couldn't understand why it was addressed to me. HMJr: No. (Laughs) A: You see my difficulty. HMJr: (Laughs) A: I'll tell Isbey this is intended for him. HMJr: Yeah. A: Do you intend to confirm that in any way? HMJr: I? A: No, I mean, someone -- to make it Isbey .... HMJr: Oh. A: .... or should I .... HMJr: .... you just tell him you talked to me on the phone and that there was some -- some person made a mistake. A: Yes, sir. HMJr: And that it.is meant. for him. A: All right. I'll do that. HMJr: Where is Isbey? A: He's -- he's here in London, now. HMJr: All right. You know we -- we've fixed the rate on the mark. A: Fine. HMJr: Have you heard about it? - 5 - 5 A: Pardon? HMJr: What? A: I didn't hear you. HMJr: We've fixed the rate for the mark. A: Oh, yes, sir. I heard about it yesterday. HMJr: You did? A: Yes. HMJr: Everybody, I suppose, is happy over there. A: Yes. Is Taylor coming back? HMJr: He's had no baby yet. A: Oh, goodness! HMJr: Is he .... A: Well, that's too bad. HMJr: Yeah. A: Well, thank you very much, sir. HMJr: All right. A: Thank you. HMJr: Bye. 6 September 9, 1944 10:05 a.m. MATERIAL FOR QUEBEC CONFERENCE Present: Mr. D.W. Bell Mr. Adler Mr. Gaston Mr. Nathan Mr. Pehle Mr. DuBois Mr. White Mr. Glasser Mr. O'Connell Mr. Ostrow Mrs. Klotz Mr. Bittinger Mr. McConnell Mr. Minskoff Mr. Bernstein Mr. Taylor Mrs. Gold MR. McCONNELL: Do you want to go into this indus- trial aspect? H.M.JR: Yes, I don't see any sense in bringing Baruch in at the start. MR. McCONNELL: This is very simple. (Hands the Secretary attached memorandum of September 10) H.M.JR: I don't think that this answers it. Last night I read the title and it is very interesting. Is there a book now? Where is Taylor? Is this number one different from what it was? MR. TAYLOR: It is slightly shorter, sir. H.M.JR: "The program to prevent Germany from starting a World War." There is nothing new in that? MR. DuBOIS: Nothing new - just a little bit taken out to make it shorter. H.M. JR: Well, I have had that so there is no use going into that. Regraded Unclassified - 2 - 7 "Reparations mean a powerful Germany" - could somebody read that out loud? MR. WHITE: I will get a set of duplicates. H.M.JR: Here, take it and read it out loud. (Mr. White reads Attachment A) H.M.JR: Unless somebody has some violent objection - I have just got to go through this thing to see what is in here. Do you see what I mean? I haven't got very much time. The next thing is "Economic restitution by Germany to the United Nations." Is this new? MR. WHITE: There are no new ideas, Mr. Secretary, but there are some added items. I can attempt to state them as briefly as possible. H.M.JR: Read this one, or let Pehle read it. (Mr. White reads Attachment B) MR. WHITE: There is one here that I don't think you are familiar with that you might want to hear next: "Ger- man Militarism cannot be destroyed by destroying Nazism.' H.M.JR: Well, anything that is new. (Mr. White reads Attachment C) MR. WHITE: "How British industry would benefit by proposed program." H.M.JR: That is new. Who are the men or women who worked on that? MR. WHITE: Harold Glasser. MR. GLASSER: We all worked on it. H.M.JR: Let Taylor read it. MR. WHITE: It is missing. Will you (DuBois) see where that is? (Mr. DuBois left the conference temporarily) 8 - 3 - MR. WHITE: "It is & fallacy that Europe needs a strong industrial Germany." I wonder if you will read that, John? MR. PEHLE: Sure. MR. GASTON: That is important. I think you will have to meet that. (Mr. Pehle reads Attachment D) H.M.JR: What was that figure between the best and worst? MR. PEHLE: Thirty-two million tons. H.M.JR: You gave me the figure, McConnell, the other day between the low and the high. MR. TAYLOR: About sixty million tons. The high point was reached in 1913. H.M.JR: Mrs. Klotz, tell Haas to follow up on those figures. MR. GASTON: One point that might be made there is that the dislocation - which might be the chief disadvantage of any change in the streams of trade - that the temporary disloca- tion has already been written off in the five years of war. MR. WHITE: That is the real point, yes. It is different than if you were starting from before the war. MR. GASTON: Yes, if you were starting before the war-- MR. WHITE: There has been no trade between Germany and these other countries. There will be none. MR. BERNSTEIN: "How British industry would benefit from the program." (Mr. Bernstein reads Attachment E) H.M.JR: Be sure to put on the outside of the book, "For the Quebec Conference." MR. WHITE: The President's name, and "For the Quebec Conference"? H.M.JR: Yes. 9 - 4 MR. WHITE: "Why the Resources of the Ruhr should be locked up and equipment removed." H.M.JR: Yes. MR. WHITE: I will read that. (Mr. White reads Attachment F) H.M.JR: That is wonderful. MR. WHITE: I feel we have exaggerated. H.M.JR: That is all right. But I mean, the effect this has on me is that if anything like this is in project I think it would be the greatest boon for England that she has ever seen in her whole history. All of Mr. Churchill's fears could be laid away. He could put his mind on licking Japan - helping us to. He could put his mind on going to work to help us to lick Japan and stop worrying about their economic future. MR. GASTON: Is much of that Englishcoal, coke? MR. McCONNELL: Practically all. MR. GASTON: I asked whether that English coal was much of it coking coal and Mr. McConnell says practically all of it. In other words, steel-making coal. MR. NATHAN: Yes, for coke purposes. We checked up on that very carefully. The British could supply all the coal that would be lost in the world. H.M.JR: Say it again, please? MR. NATHAN: We checked on it very carefully. The British could supply all the coal for coking purposes if we lose the coal mines in the Ruhr. MR. WHITE: On this list of leading Nazis - we decided not to include that list, and we put "being compiled" because 10 - 5 - there are a lot more to be added to them. So that is not in here. H.M.JR: I tell you what I would do, I would put in a preliminary list. MR. WHITE: These are the Nazis who were living in 1935. H.M.JR: As a matter of fact, don't you think that particular part might be rather fortuitous? I think we are really stepping out of our role on that one. MR. WHITE: Would you (to Mr. Ostrow) mind telling them to delete that number 12, please? Just do the Table of Contents over without the 12. Thank you. (Mr. Ostrow leaves the conference temporarily) MR. WHITE: "The well-being of the German economy is the responsibility of the Germans and not of the Allied Military Authorities." We really are making just a series of statements, but I will be glad to read it. It is brief. H.M.JR: Long? MR. WHITE: It is brief. Let me go over the others and then you can choose: "What to do about German re-education, If "Punishment of war criminals," we modified that slightly - -"Controls over development of German economy" - that is very brief and should be expanded. H.M.JR: Let's hear that. (Mr. White reads Attachment G) MR. WHITE: We easily could expand that. We will go ahead and prepare another draft. If we are able, we will put it in. 11 - 6 - MR. PEHLE: "What to do about German re-education." (Mr. Pehle reads Attachment H) MR. WHITE: I want to comment on a couple of changes in the preliminary general principle which we made. It won't be necessary to read the whole of it again. One is, we thought it better to delete the matter of insignia. We left only the uniforms. The insignia was their own addition and they seemed to object to it. We can add that later. Secondly, we cut out much of the United States' responsibility. We shortened that, and merely said that it ought to participate in the administration, but the program we have would permit of a very rapid withdrawal of U.S. troops. Joe, can you think of other things to mention? MR. DuBOIS: A little bit out of the Ruhr section - you recall, where we had the three stages of destruction - we eliminated the three stages. MR. WHITE: We made it briefer. H.M.JR: Where did you leave the Saar? MR. WHITE: The Saar with France. It would be unfor- tunate if that were not done. H.M.JR: What else do you have, Harry? 12 - 7 - MR. WHITE: There are some charts back there, but really they are not very effective. All they show is the coal production and the iron production of the various countries, and-- Oh, you have a copy? (Mr. Nathan gives the Secretary copies of charts) H.M.JR: You didn't include the Saar, did you? MR. BERNSTEIN: Which one is that? H.M.JR: "Production of coal, iron, and steel in the various countries." MR. BERNSTEIN: We couldn't separate it, from the figures available. H.M.JR: Now, when you speak of the Ruhr - after all, the Ruhr runs clear across Germany into Belgium. Are you just talking about that part which is in Germany? MR. NATHAN: Yes, we took that alone, Mr. Secretary. H.M.JR: But it does run clear across there. MR. NATHAN: There are special figures for what is called the Ruhr, but not for the Saar, no. H.M.JR: Too bad. Well, the steel produced in the Saar would fall under what? MR. NATHAN: According to our scheme it would fall to France. H.M.JR: But this production of coal - you have the Ruhr, so much steel; and you have France, Belgium, United Kingdom, but you don't show what is produced-- MR. NATHAN: What has been produced in 1937 in the Saar is not shown on this chart, Mr. Secretary. We were interested to show the relationship between production in the Ruhr and the Western European countries. 13 - 8 - H.M.JR: That is the purpose? MR. NATHAN: Yes. H.M.JR: Could you do another one for me with the Saar? MR. NATHAN: I shall try to. H.M.JR: I mean the same way. This gives me what I want. It shows the Ruhr in relation to the rest of the world. MR. NATHAN: I shall make the same one for the Saar. H.M.JR: Will these-- MR. WHITE: That merely shows how the coal production of the Ruhr shot up during the war period. H.M.JR: Will these be in the book? MR. WHITE: Yes, and there are also two maps in the book; one map which you have seen a number of times, showing the boundries which you are suggesting, and another map which is a small edition of that large map on the location of coal deposits in the Ruhr that you had here. H.M.JR: Well, I think, considering the time that you people had, it is a perfectly amazingly good job, and I want to congratulate all of you. I realize perfectly that it isn't the last word, and I am a little bit timid about giving copies to Mr. Stimson and Mr.. Hull, but I am going to do it anyway. Now, the only thing I suggest is that you people keep working at this, and if we find that we have made mistakes, or we can improve the thing, we will ask them to give us back certain sections and we can substitute, and I will explain when I present this at twelve o'clock today that this is a job done wholly within the Treasury, without consultation or benefit of what other Departments have, that this may be duplication, and so forth. 14 - 9 - MR. WHITE: And that it was done in a very brief time. H.M.JR: But it does give me an opportunity, and as far as I know it is the only thing, unless the President has something he hasn't told any of us about, which does give him the picture - and I listened last night to the whole speech of Mr. Dewey, and I think, in the light of his speech - and I recommend that everybody in this room read it - did any of you hear it? (Mrs. Gold nods her head) H.M.JR: Well, the transition period where he stops and goes from his economic philosophical talk, into the political, is the most amazing thing. He changed his whole voice, didn't he? (Mrs. Gold nods her head) MR. WHITE: Which way? H.M.JR: He suddenly started entirely differently. It is here where he started (points to Times write-up). He ended up, "There will be for each of us, not only as nations, but as individuals, the daily task of getting along with out neighbors, wherever they are" - very quiet - then he starts in entirely differently - "By this I do not mean getting along with the philosophy of Washington wasters. They have been proposing that America should try to buy the good-will of the world out of the goods and labor of the American people. They propose to buy themselves international power out of our pocketbooks. Now, what the hell he means by that, I don't know. I don't know what he is talking about. MR. WHITE: They are giving money away in Lend-Lease and giving it to Latin-American countries. H.M.JR: He talks of the WPA of the world - but the 15 - 10 - rest of the talk was very good. Didn't you think it was good? MRS. GOLD: Yes, I was amazed at what he had in it. H.M.JR: It puts the Administration very much on the defensive. MR. O'CONNELL: Only in the last five minutes. H.M.JR: No, I mean the whole talk; it was the whole talk. It doesn't satisfy me, but it goes much further than anybody has for Mr. Roosevelt.. And it may be good, because we will have to go further than he does. The net result, after thinking about it all night - I think it was good, be- cause after that, Mr. Roosevelt, or somebody, has to do better. MR. WHITE: Is he specific at all? H.M.JR: Yes, and his delivery was very quiet, and everything. Of course, I think he made a great mistake that he didn't end before he went into the political stuff. I think he would have been much, much more effective. He would be very hard to answer if he just had stopped on that part there about our neighbors. MR. GASTON: He makes it appear that his whole nego- tiations. with Dulles, and so. forth, was for the purpose of making political ammunition and political fire. H.M.JR: He didn't, up to that one point. MR. GASTON: That is what I mean. H.M.JR: I am very glad we are doing what we are. I should think it would be very useful to the President at Quebec. Please don't stop. Please keep right on. It is very, very necessary. And out of this thing, what I am hoping is, there will come a directive from the Presi- dent as to his policy. That is what I am hoping for. Regraded Unclassified 15 - 10 - rest of the talk was very good. Didn't you think it was good? MRS. GOLD: Yes, I was amazed at what he had in it. H.M.JR: It puts the Administration very much on the defensive. MR. O'CONNELL: Only in the last five minutes. H.M.JR: No, I mean the whole talk; it was the whole talk. It doesn't satisfy me, but it goes much further than anybody has for Mr. Roosevelt. And it may be good, because we will have to go further than he does. The net result, after thinking about it all night - I think it was good, be- cause after that, Mr. Roosevelt, or somebody, has to do better. MR. WHITE: Is he specific at all? H.M.JR: Yes, and his delivery was very quiet, and everything. Of course, I think he made a great mistake that he didn't end before he went into the political stuff. I think he would have been much, much more effective. He would be very hard to answer if he just had stopped on that part there about our neighbors. MR. GASTON: He makes it appear that his whole nego- tiations with Dulles, and 30 forth, was for the purpose of making political ammunition and political fire. H.M.JR: He didn't, up to that one point. MR. GASTON: That is what I mean. H.M.JR: I am very glad we are doing what we are. I should think it would be very useful to the President at Quebec. Please don't stop. Please keep right on. It is very, very necessary. And out of this thing, what I am hoping is, there will come a directive from the Presi- dent as to his policy. That is what I am hoping for. 16 - 11 - MR. WHITE: Of course, there is a lot of material, for example, that Bob McConnell has, and is gathering, which would be extremely useful if we had to expand the questions of economic controls, that would be vital. H.M.JR: Well, as I say, what I would like to do - could you get together one more and leave it with Fitz? And then I am going to sit here and read it. MR. WHITE: I will get it right back. We don't have complete copies of the maps, and so forth, but the Presi- dent's copy will be complete. H.M.JR: Neither Mr. Hull nor Mr. Stimson will look at this thing now, anyway. I congratulate all of you. 17 Sept.10,1944 Secretary Morgenthau R. E. McConnell In the post-surrender program which will effectively forestall a third German war, it will be necessary to deal with German industry, and the following procedures should become an integral part thereof. If these three procedures were adopted, Germany would be rendered impotent to conduct another war. If the Allied Nations continued to maintain the status suggested, Germany's war potential will continue to be zero. (1) Eliminate 100% of all synthetic oil capacity (which would destroy 80% of Germany's internal oil resources) and prohibit the reconstruction of plants and the importation of oil beyond normal peacetime inventories. (2) Eliminate 75% of Germany's synthetic nitrogen plant capacity (which would leave a capacity in Germany ample for peacetime nitrogen requirements) and prohibit reconstruction of plant and all importation of nitrogen compounds. (3) Eliminate 50% of Germany's steel-making capacity in those categories of plants which are most capable of pro- ducing essential war material such as heavy forging, electro- lytic and high alloy steels. Also prohibit importation of iron ore, flux material, steel and steel products beyond normal peacetime inventories. While either one of the above three procedures will ef- fectively accomplish the objective, the other two will add insurance. REM:ESD Regraded Unclassified A 18 Reparations mean a powerful Germany. If we were to expect Germany to pay recurring reparations, whether in the form of money or goods, we would be forced at the very beginning to start & rehabilitation and reconstruction program for the German economy. For instance, we would have to supply her with transportation equipment, public utility repairs, food for her working population, machinery for heavy industry damaged by bombing, reconstruction of housing and industrial raw materials. No matter how the program would be dressed up, we would, in effect be doing for Germany what we expect to do for the liberated areas of Europe but perhaps on an even greater scale, because of Germany's more advanced industrialization. When reparation deliveries cease Germany will be left with a more powerful economy and a larger share of foreign markets than she had in the Thirties. Therefore, a program of large-scale reparations must be rejected for the following reasons: 1. Politically it would be very difficult to persuade people of liberated Europe and of the other United Nations, including the U.S., to accept a program of immediate reconstruction of the German economy. 2. If liberated Europe becomes economically dependent on Germany for reparations, her economic dependence cannot be broken off when reparations cease. The rest of Europe would continue to be dependent on Germany as a source of supply and as a market. These economic ties would also mean political ties. Germany would be right back where she was in the Thirties when she was able to dominate the rest of Europe economi- cally through her industrial power and to exert her economic power to achieve political dominations. 3. An economically powerful Germany ipso facto constitutes a military threat to world security. 4. The payment of reparations is directly competitive with the export industries of the U.S., the U.K. and France and would create political dissensions among the United Nations. (a) Whatever the recipient countries get in reparations they will not buy from the Allied industrial powers in the post-war period. Regraded Unclassified 19 - 2 - (b) If Germany is placed on a reparations basis she will have to export industrial goods to non-European markets in order to get the necessary foreign exchange to import the raw materials for her industry. Therefore, she will again compete with England and the United States in the Latin American, African and Asiatic markets. 5. An economically powerful Germany would be able to compete more effectively with other countries as and when the payment of reparations ceases. A reparations program for Germany after this war holds no greater promise of success than the Dawes and Young plans tried after the end of the first World War. B 20 Economic restitution by Germany to United Nations L In lieu of recurring reparations payments the nation entitled to such payments will receive from Germany a lump sun payment in the form of German material resources, German human resources and German territory. This lump sum payment, which may be described as restitution rather than reparations will be effected in the following manner: (a) The transfer of German territory to liberated countries including the industrial installations located there. It is proposed that the great industrial areas of Silesia be transferred to Poland and the industry of the Saar and the adjacent territories be transferred to France. These territories will represent enormous wealth to the recipient countries. (b) By removal and distribution among devastated countries, of industrial plants and equipment and transportation facilities including rail- roads, situated within the remaining German territory and the Ruhr. It is expected that complete factory units, machinery, equipment, stocks of raw materials, railroad and shipping will be transferred to the devastated countries and will constitute a real basis for the recon- struction and industrialization of liberated Europe to the extent possible the whole industry of the Ruhr will be 80 transferred. (c) By the creation of German labor battalions to be used for reconstruction work outside Germany. (d) By confiscation of all German foreign exchange assets of any character whatsoever. The type of restitution described above will be more beneficial both politically and economically to recipient countries than would be any form of recurring reparations payments. Beuefits will be realized almost immediately by the receipt of machinery, equipment and manpower, and the economies of the recipient countries will be strengthened absolutely as well as relatively to that of Germany. Regraded Unclassified 21 To the extent that the need of these countries for industrial products is supplied by U. S. and U. Ka instead of by Germany, the receiving nations benefit by obtain- ing delivery more rapidly in the immediate post-war period. Also by supplying such goods U. S. and U. K. enjoy expanded foreign post-war markets. Regraded Unclassified C 22 German Militarism cannot be destroyed by destroying Nazism alone. (1) The Nasi regime is essentially the culmination of the unchanging German drive toward aggression. (a) German society has been dominated for et least three generations by powerful forces fashioning the German state and nation into 8. machine for military conquest and self-aggrandise- ment. Since 1864 Germany has launched five wars of aggression against other powers, each war involving more destruction over larger areas than the previous one. (b) As in the case of Japan, the rapid evolution of a modern industrial system in Germany immeasurably strengthened the economic base of German militarism without weakening the Prussian feudal ideology or its hold on German society. (e) The Nasi regime is not an excrescence on an other- wise healthy society but an organic growth out of the German body politic. Even before the Nasi regime seizci power, the German nation had demonstrated an unequalled capacity to be seduced by a milita ist clique offering the promise of economic security and political domination in exchange for disciplined acceptance of its leadership. What the Nazi regime has done has been to systematically debauch the passive German nation on an unprecented scale and shape it into an organized and dehumanized military machine integrated by all the forces of modern technique and science. (2) The dissolution of the Nazi Party will not, therefore, by itself ensure the destruction of the militaristic spirit instilled into the German people over generations and given an overwhelming impetus in the last decade. This will of necessity be an arduous process, and for a long time to come it would be gambling with the very destiny of civilization to rely on an unproven German capacity for self-regeneration in the face of its proven capacity for creating new weapons of destruction to be used in wars of aggression. Therefore, in addition to disarming and weakening Germany as a military power, the interests of world security will best be promoted by: (a) Foreibly reducing Germany's industrial capacity 80 that she will cease to be a major economic, military and political power. (b) Strengthening all Germany's neighbors politically and economically relatively to Germany. The nore likely she is to realise the futility of the militarist philosophy from which aggression ensues. Regraded Unclassified A 23 It is a fallacy that Europe needs a strong industrial Germany. 1. The assumption sometimes made that Germany is an indis- pensable source of industrial supplies for the rest of Europe is not valid. U.S., U.K. and the French-Luxembourg-Belgian industrial group could easily have supplied out of unused industrial capacity practically all that Germany supplied to Europe during the pre-war period. In the post-war period the expanded industrial capacity of the United Nations, particularly the U.S., can easily provide the reconstruction and industrial needs of Europe without German assistance. Total German exports to the entire world in 1938 were only about $2 billion, of which machinery steel and steel products amounted to about $750 million, coal $165 million and chemicals $230 million. These amounts are trivial in comparison with the increased industrial potential of the U.S. alone, or of the U.K. One- fifth of our lend-lease exports of 1943 would be sufficient to replace the full exports of Germany to the whole world. 2. A claim has been made that Europe is dependent upon Ruhr coal. The French-Belgian steel industry and some of the new industrial units which will arise in Europe after the war will need imported coal supplies. However, the British coal industry which suffered from German competition before the war will be able to supply a major part if not all of these needs. The coal industries of France, Poland, Silesia and the Saar are also capable of further expansion if the competition of the Ruhr is eliminated. Further supplies if necessary could be obtained from the United States though at a much higher price. The different quality of the substitute coals may require some technological changes but the adjustment can be made. Germany had a net export of coal of 32 million tons in 1937. The difference between the British coal production in a good year and a depressed year was more than the total German exports of coal. Moreover, at no time in the last 25 years has the British coal industry worked at full capacity. 3. Germany has been important to the rest of Europe as a market principally for surplus agricultural products. In 1937 Germany's food imports from the world were $800 million, of which Europe supplied $450 million. Total German purchases of raw materials from Europe in 1937 were about $350 millions The less of the German market will be largely compensated for by the following developments: Regraded Unclassified 24 - 2 - (a) If German industry is eliminated, no doubt the bulk of the industrial raw materials which Germany used to purchase will now be bought by other European nations which will henceforth produce the industrial commodities which Germany exported before to Europe. (b) The industrialization and the heightened standard of living of the rest of Europe will absorb a part of the food surpluses which formerly went to Germany. (c) Those parts of Germany which will be added to other countries (the Rhineland, Silesia, East Prussia) may have as high 8 volume of food imports as before, perhaps higher. (d) The remaining part of Germany will continue to import some food, perhaps 25%-50% of former food im- ports. 4. Germany was important to the rest of Europe as a market to the following extent: Percentage of each country's exports to Germany 1938 United Kingdom 4% France 6% U.S.S.R. 7% Belgium 12% Norway 13 Italy 15 Czechoslovakia 15 Netherlands 15 Denmark 20 Poland 24 Yugoslavia 38 Greece 38 The U.K. exported principally coal and textile materials to Germany and the principal French exports were iron ore and wool. The elimination of German industrial exports will pro- vide adequate markets for these exports and more. The loss of the German market may be important to the Balkan countries. Agricultural exports of these countries to Germany were abnormally large in 1938 because of Germany's unscrupulous exploitation through clearing agreements and other devices. These countries will find markets for part of Regraded Unclassified 25 - 3 - their food surplus through industrialization and a higher standard of living within their own country. German areas will continue to import some food from them. However, there may be a net loss of markets to Denmark, Holland, and Yugoslavia, and these countries will need to make an adjust- ment in their economies which should not be difficult in the period of greater adjustments which will come with liberation. 5. In short, the statement that a healthy European economy is dependent upon German industry was never true, nor will it be true in the future. Therefore the treatment to be accorded to Germany should be decided upon without reference to the economic consequences upon the rest of Europe. At the worst, these economic consequences will involve relatively minor economic disadvantages in certain sections of Europe. At best, they will speed up the industrial development of Europe outside of Germany. But any disadvantages will be more than offset by real gains to the political objectives and the economic interests of the United Nations as a whole. Regraded Unclassified E 26 How British Industry Would Benefit by Proposed Program 1. The British coal industry would recover from its thirty year depression by gaining new markets. Britain would meet the major portion of the European coal needs formerly met by the annual Kuhr production of 125 million tons. The consequent expansion of British coal output would allow for the development of a coherent program for the expansion and reorganization of what has been Britain's leading depressed industry since 1918 and facilitate the elimination of the depressed areas. 2. The reduction in German industrial capacity would eliminate German competition with British exports in the war Id market. Not only will England be in 8 position to recapture many of the foreign markets she lost to Germany after 1918, but she will participate in supplying the devastated countries of Europe with all types of consumer and industrial goods for their reconstruction needs in the immediate post-war years. 3. Transference of 8 large section of German shipping, both commercial and naval, and shipbuilding equipment to England will be an important item in England's program of post-war economic expansion of restitution. 4. Britain's foreign exchange position will be strengthened and the pressure on sterling reduced by the expansion of her exports and shipping services. 5. The assurance of peace and security would constitute England's greatest single economic benefit from the proposed program. designed to put Germany in 9. position never again to wage effective war on the continent. England would be able to undertake the program for economic and social reconstruction advanced in the Beveridge plan and the Government program for full employment without having to worry about the future financial burdens of maintaining large army and huge armament industries indefinitely. 6. Britain's political stability would be reinforced by her increased ability to meet the insistent domestic demands for economic reform resulting from the assurances of security and of an expansion of her exports. Regraded Unclassified 27 Why the resources of the Ruhr should be locked up and the equipment removed. During the last hundred years the basis of modern German militarism has been the industrial capacity of the Ruhr. Very large resources of high quality coal that lends itself parti- cularly well to the production of coke and a fortunate geographic location which facilitated the importation of iron ore, were the foundation of an industrial apparatus that is unique throughout the world and the development of which has been deliberately guided by military objectives. The elimination of this industrial apparatus is indis- pensable to rendering renewed German aggression impossible for many years to come. No other device could serve this main objective of the United Nations with the same effectiveness. Dismemberment of Germany alone would not suffice since political developments several decades hence may make a reunion of the several German states possible. In that case the reunited German State would immediately possess a huge industrial potential unless the Ruhr industry were destroyed. If the Ruhr industry were eliminated, new iron and steel industries would unquestionably be built up in the rest of Europe to provide for those needs in iron and steel which the Ruhr used to satisfy, and to make use of the French iron ore production. Coal would become available from the Saar, from Increased production in France, Great Britain, Silesia and Poland. The elimination of the Ruhr would hence be & welcome contribution to the prosperity of the coal industry of several United Nations. Great Britain has very large reserves of coal; her proved reserves are held to represent, at the present rate of extraction, about 500 years' supply. Britain's coal production has severely declined in the inter-war period and never again reached its maximum of 1913 (293 million metric tons). The level of production in the years preceding this was that of the turn of the century, the increase between 1900 and 1913 having been lost. The produc- tion in 1938 was 60 million tons lower than in 1913. The new iron and steel industries which will arise in Europe to take the place of the Ruhr will have such a power- ful vested interest that they will constitute 8. permanent and effective barrier to the re-industrialization of the Ruhr, Regraded Unclassified if 28 Controls over Development of German Economy A long range program should be put into effect for the purpose of controlling the strategic e lements in the German economy for a prolonged peried, at least 20 years. The elements which should be controlled are: 1. German foreign assets, including patents and copyrights. 2. German foreign trade. 3. Clearing and trade agreements with foreign countries. 4. Capital imports and capital exports. 5. Industries producing strategic materials other than those for which special provision has been made. 6. The German commercial and fishing fleet. 7. Inland navigation, e.g., canals and rivers. It is essential that the foregoing strategic elements in the German economy be controlled lest through their use, the Germans once again proceed to build up various aspects of their industrial and economic structure for future militaristic and aggressive purposes. Germany has been the leader in the world in using customs tariffs, trade preferences, foreign exchange control, control over transit trade, import quotas, interna- tional cartels, patents and copyrights for discriminatory and unfair trade advantages against her neighbors. It has been the focal point for many of the festering sores and competitive trade wars throughout the 1920's and 30's. Regraded Unclassified I 29 What to do about German re-education The militaristic spirit which pervades the German people has been deliberately fostered by all educational Institu- tions in Germany for many decades. Schools, Colleges and Universities were used with great effectiveness to instill into the children and the youth of the nation the seeds of aggressive nationalism and the desire for world domination. Re-education of the German people must hence be part of the program to render Germany ineffective as an aggressive power. Re-education cannot be effectively undertaken from out- side the country and by teachers from abroad. It must be done by the Germans themselves. The hard facts of defeat and of the need for political, economic and social reorientation must be the teachers of the German people. The existing educational system which is utterly nazified must be completely reorganized and reformed. The chief task will be to locate politically reliable teachers and to educate, as soon as possible, new teachers who are animated by a new spirit. A United Nations Commission of Education should be created which will have supreme authority in all matters of education and organs of public opinion. All educational institutions of any type and character will be closed. Their reopening will depend (1) upon the possibility of assembling faculties in whom political confidence can be placed; (2) upon reorganization of curricula; (3) upon the completion of new text books to replace the utterly unusable books of the past. During a preliminary period only appointments to faculties of educational institution should be subject to the approval of the United Nations Commission of Education. While it may be possible to reassemble faculties for primary schools after 8 relatively short time, all institutions of higher learning, the chief centers of militaristic, pan-German propaganda in the past, may have to remain closed for a number of years. Regraded Unclassified 30 September 9, 1944 11:43 a.m. HMJr: Hopkins? Operator: Right. HMJr: Yes. Operator: Go ahead. HMJr: Hello. Harry Hopkins: Henry. HMJr: Yes, Harry. H: I want to tell you what I know more about that suggestion you made about the personnel. HMJr: Yeah. H: First, the job was offered to Byrnes. HMJr: Yeah. H: He is turning it down. HMJr: Really? H: Yeah. Now, in between then, when I knew that HMJr: Yeah. H: and -- I went over to see Hull to make certain that Hull would not jump the traces. HMJr: Yes. H: Hull is quite agreeable and, indeed, anxious and said to me, amongst other things, "Do you think we can depend on Winant to be tough?" HMJr: Yes. H: I said I thought SO. HMJr: Uh huh. H: Now -- then Hull said to me, "Well, if you'll find out from the President the lay of the land. = 31 - 2 - HMJr: Yeah. H: I didn't tell him that you had -- you know .... HMJr: Good. H: .... had been in on this. -- ".... I will speak to the President." And now, bear in mind the way it lies now .... HMJr: Yeah. H: .... that Jimmy is not going to take it .... HMJr: Yeah. H: although it was put up to him very badly. HMJr: Very badly? H: Oh, God, it was terrible. HMJr: In what way was it "badly"? H: Well, the Department -- State Department sent a man over to see him. HMJr: Oh, for God's sake. H: And, in effect, they -- to tell him what the job was about, you see? HMJr: Yeah. H: And they outlined to him this job which they've got on the chart .... HMJr: Yeah. H: .... of the European Advisory Commission chart. HMJr: Oh. H: Uh -- for the Economic Control Commission .... HMJr: Oh. H: .... which 1s, as I understand it, is an outfit that comes under the High Commission. See? - 3 - 32 HMJr: I see. H: And they didn't talk to him about the High Commissioner. HMJr: Oh, for Heaven's sake! H: And Hull said to me -- well, he said, "I have been assuming all along that you were going to have that job. Meaning me, see? HMJr: Right. H: But I had a very frank talk with Jimmy about it and told him I had thought that they had intended to offer him the job of High Commis- sioner and he said, "Well, that wouldn't make any difference because it would be, in effect, the same kind of a job." HMJr: Yeah. H: If he was High Commissioner, he'd have control of the economic business and it was the type of an administrative job that he was not going to do. HMJr: Yeah. H: He was appreciative of the offer. HMJr: Yeah. H: Now, he would take the job of Ambassador. HMJr: To England? H: Yeah. What? HMJr: To England? H: Yeah. HMJr: He would? H: Yeah. HMJr: You -- you've talked to him? 33 - 4 - H: Certainly. HMJr: Yes. H: I wanted to -- if we're really going to move on this .... HMJr: Yes. H: .... I want to be sure that we can get home. HMJr: Yeah. H: He knows nothing -- I told him I have no idea what the President would say. HMJr: Yes. H: See? About it. But, it -- well, now, that's the way the thing lies at this minute. Now, I have not talked to the President, myself. HMJr: Well, when are you going to talk to him? H: Well, I thought I'd try to get a chance either right after this meeting HMJr: Yeah. H: Now, you -- you're inclined to think he'll be favorable to this? HMJr: Well, from. my. discussion with him, I -- I sort of gathered he kind of liked it. H: Yeah. HMJr: See? H: It's the best thing I could think of; although now you realize the situation is that Byrnes is not going to take the job. HMJr: Yeah, but .... H: But the minute he doesn't take it -- uh -- you see -- and I don't think he's told the President yet. Well, God damn it, they'll come up with somebody else .... 34 - 5 - HMJr: Well, the point .... H: that's far worse, you see? HMJr: Yeah, well, the point 1s this, Harry: I think the President right now -- his immediate interest is to find a place for Byrnes. H: Well, I think that's one thing and I -- I think he could be persuaded quite easily that Winant could do this job. HMJr: Yeah. H: That Winant has done a fine job in England and that Byrnes would do a good job. HMJr: Yeah. H: That Byrnes'- uh -- relation to the Senate later HMJr: Yeah. H: on the peace treaty would be very helpful to him. HMJr: That's right. H: At some point -- and we're going to need a lot of help. HMJr: I think it's a natural. H: And that we could lay this out to Winant in a way that Winant would take it. Winant will do whatever the President tells him HMJr: Yeah. H: to do. Now, the President may have to lay it on a little thick to Winant, but I don't care how thick he lays it on. HMJr: Well, I hope that in doing it you'll keep it in mind that I would feel very much reassured and I H: If Winant were the man? 35 - 6 - HMJr: Yeah. And if he would take a man like John Pehle with him H: Well, I think he'd be very reasonable about taking people. HMJr: Well, I think -- well .... H: Don't you? HMJr: Yes, but I think .... H: And later -- but we can't sew that up at this moment. HMJr: No, but I want to keep -- to have you -- have it in your mind. H: Sure. Well .... HMJr: You need a tough guy like Pehle. H: What I thought 18 that as soon as we could get this settled .... HMJr: Yes. H: .... then we'd proceed, sort of between us, and see if we couldn't make -- suggest three or four different people that he'd take with him. HMJr: Yeah. H: See? HMJr: Because -- now, you take this Colonel Chandler who has been over here on this handbook. H: Yeah. HMJr: I don't know whether you know him or not. H: Yeah. He used to be LaGuardia's .... HMJr: Yes. H: .... counsel. HMJr: Well, he was in here the other day and he was talking to our boys about this directive .... - 7 - 36 H: Yeah. HMJr: .... and what Eisenhower should say and what he shouldn't say. H: Yeah. HMJr: He said, "Well, after all," he said, "the German troops are disciplined. You've got to remember that. They're not like the American soldiers." H: (Laughs) HMJr: Now, those are the kind of people H: Yeah. HMJr: in fairly important positions who are handling these directives. H: Do you know whether -- whether Harry White has put his mind any more on the language in that Section H of that first -- thing the State Department gave him? HMJr: That I don't know, but I've got a whole book that I'm going to give to the President. We've gone much, much further. And I'm giving each of the rest of you copies, but it's just dry now. I haven't had a chance .... H: No. HMJr: .... to circulate.it. H: I see. HMJr: But this is an amazing job that the boys have done over night here. H: Yeah. Is that the job McConnell was on? HMJr: Well, only in part -- small part. H: Yeah. I see. HMJr: But .... H: Yeah. - 8 - 37 HMJr: he -- only the small part. H: Yeah. HMJr: But we've got a job which the President can take with him .... H: Uh huh. HMJr: .... and we've .... H: We're .... HMJr: What? H: How far do you think we can get today -- simply an extended discussion of the other day? HMJr: Well, what I'm hoping is that the President will turn to the four of us and say, "Will you give -- concoct for me a directive which will express the Administration's policy towards Germany?" H: Yeah. Yeah. HMJr: See? H: Yeah. HMJr: That's what I'd like to get. H: That's as far as we get this morning? HMJr: If we got that, that would be wonderful. H: All right. HMJr: What do you think? H: That's all. HMJr: What? H: That's as far as I'm sure we can get. HMJr: Yeah. H: Uh -- I hope we can get into a little discussion about po tition this morning. par- HMJr: Well, I hope so, too. 38 - 9 - H: Irrespective of that .... HMJr: Now I heard Dewey .... H: On its own -- on its own merits .... HMJr: Did you hear Dewey last night? H: No, but I read it this morning. HMJr: Well, you should have heard him. H: Yeah. HMJr: Now, the first twenty-five minutes that boy was good. H: Yes. HMJr: Then when he got into the Washington wasteful- ness, from then on he got straight political. H: Yeah. HMJr: But the first twenty-five minutes that boy was good. We've got to be "gooder". H: Yeah. Yeah. HMJr: A damn sight better than he was. H: Oh, yes. All right. HMJr: What? H: Oh, yeah, All right. HMJr: And he isn't giving us much time to move. H: No. HMJr: But that's very interesting about Jimmy. H: Yeah. Well, now, it's, I think, it's sitting all right if the Boss will -- will go through with it and I know Hull is sitting all right about it. HMJr: Yeah. Well, I think he will. - 10 - 39 40 H: Hull doesn't want to go over there with a recommendation on this unless he's pretty sure he's going to get home. HMJr: I think it's something that the President should offer to Jimmy himself. H: Oh, he would. The President would handle it, but HMJr: But you say .... H: .... Hull ought to get in it now, see, and say, "I'd like to see this done." HMJr: Yeah. He's very funny on these things. H: Yeah, he is and he's got to be handled carefully. HMJr: Yeah. H: I don't like to have him in the position of saying, "Well, the President picked this fellow and hence I have nothing to do with it." HMJr: Yeah. H: You see? HMJr: Yeah. H: But I think, perhaps, we'd better not talk about that with all these people présent. HMJr: oh, no. H: Unless the President brings it up and then the thing to do is to go after it hard. HMJr: That's right. H: All right. HMJr: Keep me posted. H: Yeah. Bye. HMJr: I thank you. 41 September 9, 1944 3:30 p.m. GERMAN PARTITION Present: Mr. D. W. Bell Mr. Gaston Dr. White Mr. McConnell Mr. Pehle Mrs. Klotz H.M.JR: Well, again, I don't suppose it is necessary for me to emphasize the confidential nature of these discussions, but the gist of this thing is this: I understand Hopkins brought up the question of partition, and he seemed to be the devil's advocate for it. Hopkins did say he had had a long talk with Jimmie Dunn, who was against partition, and Isaiah Bowman, who is against partition. Then the President said he would go along with the idea of Trusteeship for the Ruhr, the Saar, and the Kiel Canal. The President also said he is in favor of dividing Germany into three parts. MR. McCONNELL: May I ask a question? Is that Trusteeship all the way up the Rhine to the Saar? H.M.JR: No, just the Trusteeship for the Ruhr, the Saar, and the Kiel. Hopkins kept pressing the point about partitioning Germany, and I frankly don't know where he stands. Hopkins put the question to the President, "Would it be correct to define your position saying you agree to partition?" The President said, "Yes." The President said, "Yes," but he is in favor of doing it now and not waiting. Then during the discussion Stimson said that we must get along with Russia; it was terribly important. 42 - 2 - The President kept looking through the book, want- ing to know whether I had the part put in about uniforms and marching. I said it was there. This is the most significant part of all. The President kept reading this thing, you see; this interested him very much. The President then read aloud, "It Is a Fallacy that Europe Needs a Strong Industrial Germany," and the President said, "That is the first time I have seen anybody say that. He says, "All the economists disagree, but I agree with that. MR. GASTON: That is the most important thing in the book, in my opinion. H.M.JR: The President says, "This is the first time I have seen this stated. Everybody seems to dis- agree on that point, but I agree with the idea." Then he says--get this-- Furthermore, I agree in an agricultural Germany. I don't see how he could come much further. MR. PEHLE: He said that on reading the title? H.M.JR: Yes, he got down as far as "Four." He read this first part, and then he said, "Oh, yes, I see you have the uniforms in Number Twelve. That is good, that is good.' Then he was crazy to read this thing. Half the time the other people were talking he was read- ing this memorandum. When he read, "It Is a Fallacy that Europe Needs a Strong Industrial Germany," he said, "I agree, but nobody else agrees." He says, "As far as I am concerned, I'd put Germany back as an agricultural country." As far as I am concerned, he doesn't have to say any more. In other words, he has come, come, come, all the time. MR. BELL: What does he mean by a Trusteeship for the Ruhr and Saar, and at the same time turn it back to an agricultural country? H.M.JR: The President hasn't had a chance to read much since I gave him that original memorandum a couple of weeks ago. He read that very carefully. He hasn't had a chance to do much since then. 43 - 3 - DR. WHITE: He is apt to read some of the things in that book, don't you think? H.M.JR: I have taken steps to see that the book goes with him. That has been taken care of. Now, the other part is that Hull turned to me and said, "All I can see that is in this book is an amplifi- cation of the things you and I stand for." I said, "That is right." MR. GASTON: Hull said that? MR. BELL: Hull said what? H.M.JR: Yes. He said, "All this is just an ampli- fication of what you and I stand for." MRS. KLOTZ: What did Stimson say? MR. PEHLE: That is an important remark. H.M:JR: I haven't read Stimson's memorandum,"so I don't know what he said. MR. WHITE: Well, do you want me to summarize it? MR. GASTON: A new one? H.M.JR: Yes. MR. WHITE: What he says is your major point, namely, the complete destruction of the Ruhr, and he says that he is unalterably opposed to that and thinks it would be a serious error to deprive the people of Europe of the products that that area could produce. He says that you would go even further than that, apparently; you would extend the obliteration of industry throughout Germany, or virtually obliteration, because the way it is phrased, . you speak not only of armament industries, but even those industries which might be regarded as key industries. And he said he is doubtful about partition. He has an open mind on that. And, likewise, he is willing to agree 44 - 4 - that the Ruhr might be internationalized, but be used for the purpose of providing reparations and products for the rest of Europe. He went on to say that he thinks that some of your demands for treatment of criminals needs to be drastically changed; that you have to have a legal procedure which provides that individuals can make their case and be tried, and so forth. But he bases the main argument on that he doesn't agree with you that industry needs to be, and certainly should be, greatly destroyed. He says that is unnatural. MR. McCONNELL: He said that he agreed with you that it should be controlled, but not destroyed. MR. WHITE: That you could obtain the same objective by controlling. MR. BELL: He said one other thing, too, about the Saar. I don't know that he said that you suggested it, but he said that it had been suggested that the Saar be given to France. He raised some question about that. He said that he agreed that all Alsace-Lorraine should go back to France, but he didn't think that France ought to get any more territory, particularly a territory where they control minority groups and form a basis for future dissensions in war. H.M.JR: I understand from the boys it is you (Bell) who wants to give the Saar to France. MR. BELL: No, I want to give the Ruhr and the Saar to England, in perpetuity. MR. PEHLE: He said France had suffered a lot from the war. MR. BELL: It is just the other way around. H.M.JR: We are kidding Mr. Bell. MR. BELL: I said I didn't see where France had con- 45 - 5 - tributed anything in this war, and I didn't see why they should get the Saar. (The Secretary holds a telephone conversation with Miss Grace Tully) H.M.JR: Apropos of nothing, the train came in three- quarters of an hour late. I said to the Pullman conductor, What are you so late for?" He said, "We stopped out in the sticks. We have only got one conductor and we had to stop there to count noses and pick up tickets." He said, "We lost money and I'm a stockholder of the New York Central and the stock is less than I paid for it and we are going to stop until we get it paid for." Forty-five minutes out in the sticks they stopped to take up the tickets. MR. WHITE: Was the President on it? H.M.JR: No, this was just me. This was when I came down from Malone. The conductor couldn't get through the train so before we got to Malone he stopped the train for forty-five minutes to take up the tickets for fear he wouldn't get them. MR. BELL: He is not only a good stockholder, but a good conductor. on the ticker. H.M.JR: They gave our meetingtoday a much better twist MR. WHITE: Did Stimson say anything? H.M.JR: Sure, he took fifteen or twenty minutes at a time trying to get over the fact that he was answering the Treasury, and how did I know that he was going to bring in something new. So all he was trying to do was to answer something that went before. 46 - 6 - Hull kept saying, "Well, we will get the President to do something. So twice I tried to get the President to agree that he had asked the three of us to draw up a declaration of policy of the United States Government towards Germany, and I couldn't get anywhere. And Hull wouldn't back me up except nudging me like this (indicating) - "Go on, give the President your papers. Go on, Henry. MRS. KLOTZ: Then you were right that Stimson would object to your bringing in these papers, but Hull didn't. H.M.JR: Then the thing, of course, that just cooked Stimson's goose for the rest of the time he was here, the President said, "Has anybody talked about partition?" So Stimson said, "Yes, Welles has; I have just been reading his book." Oh boy! Anything he says from now on is no good as far as Hull is concerned. Stimson said, "I just got a copy of his book." Another thing that seemed to upset Stimson, Hull said, "I sent you the economic report of the State Depart- ment on Germany. I'm waiting for an answer from you, Colonel Stimson." And. Stimson said, "Sir, Mr. Secretary of State, I have not received it. Hull answered, "Colonel Stimson, I sent it to you." I don't know what Hull is talking about. Is there a report of the State Department? MR. WHITE: I don't know about it. MR. PEHLE: That is an old mimeograph that they sent to Winant, probably. MR. WHITE: He may be referring to that, I don't know. I see where the War Department is going to be busy Saturday and Sunday trying to answer those arguments. 47 - 7 - H.M.JR: Well, I think that is about all. But to me - we have gone inch by inch all week, and the fact that the President now believes it is a fallacy that Europe needs a strong industrial Germany-- MR. WHITE: Having read the title, he is convinced of it. MRS. KLOTZ: Wait until he goes into it. MR. WHITE: He won't go into it. He stops with the title because he agrees. H.M.JR: What about a few maps and a few "filler-ins" for me? MR. WHITE: They are making some more. H.M.JR: Could I have a complete set? I am coming to a movie at eight o' clock tonight. Do you suppose it could be here for me? MR. WHITE: Oh, yes. H.M.JR: With Fitz, please. MR. WHITE: We will make up a book like the President had, if that is what you want. H.N.JR: I would like to take it with me on the train. I feel pretty good. MR. GASTON: You should. MR. PEHLE: He is going to the Conference in the right frame of mind. MR. WHITE: Stimson isn't going to be on the train, I guess. H.M.JR: I am only going as far as Hyde Park. 48 - 8 - MR. WHITE: Who is he taking with him? H.M.JR: I will know tonight. MR. GASTON: This doesn't mean you have written the ticket, but it certainly looks like you have given a push in that direction. MRS. KLOTZ: Did anything happen on the appointment to Germany, do you know? H.M.JR: No. MR. PEHLE: Murphy saw the President just before you did. H.M.JR: Yes, I know he did. MR. BELL: The paper indicated he would go to the meet- ing with the President. H.M.JR: Who? MR. BELL: Murphy. It wasn't positive. H.M.JR: I don't think so, because he asked to see me Tuesday. No, I gathered it was just his military en- tourage; nobody else. MR. GASTON: Leahy? H.M.JR: Leahy, watson, Steve Early - just his regular military group - I suppose Admiral Brown. Don't you feel pretty good about it, Herbert? MR. GASTON: Yes, I do. H.M.JR: Cheer up, McConnell. MR. McCONNELL: You know, if you are going to include 49 - 9 - the Saar in your international zone, it ought to go with Lorraine. MR. WHITE: You mean you wouldn't give Lorraine back to France? MR. McCONNELL: No. MR. WHITE: Start another war tomorrow. MR. Mc CONNELL: They should go together. H.M.JR: O.K. SECRET From Shinson to F.H.R. 50 copy for September 9, 1944 Our discussions relate to a matter of method entirely; our objective is the same. It is not a question of a soft treatment of Germany or a harsh treatment of Germany. We are all trying to devise protection against recurrence by Germany of her attempts to dominate the world. We differ as to method. The fundamental remedy of Mr. Morgenthau is to provide that the industry of Germany shall be substantially obliterated. Although expressed only in terms of the Ruhr, the fact of the matter is that the Ruhr and the adjacent territories which Mr. Morgenthau would include in his program constitute, particularly after the amputations that are proposed, the core of German industry. His proposition is "the total destruction of the whole German armament industry and the removal or destruc- tion of other key industries which are basic to military strength." In speaking of the Ruhr and surrounding industrial areas, he says: "This area should not only be stripped of all presently existing industries but so weakened and controlled that it cannot in the foresse- able future become an industrial area--all industrial plants and equipment not destroyed SECRET SECRET 51 -2- by military action shall either be completely dismantled or removed from the area or complete- ly destroyed, all equipment shall be removed from the mines and the mines shall be thoroughly rrecked." I am unalterably opposed to such a program for the reasons given in my memorandum dated September 5 which is already before the President. I do not think that the reasons there stated need again be elaborated. In substance, my point is that these resources consti- tute a natural and necessary asset for the productivity of Europe. In a period when the world is suffering from destruction and from want of production, the concept of the total obliteration of these values is to my mind wholly wrong. My insistence is that these assets be conserved and made available for the benefit of the whole of Europe, including particularly Great. Britain The internationalization of the Ruhr or the trusteeship of its products--I am not prepared at the moment to discuss details of method--constitutes a treatment of the problem in accord with the needs and interests of the world. To argue that we are incapable of sus- tained effort to control such wealth within proper channels is to destroy any hope for the future of the SECRET 52 -3- world. I believe that the education furnished us by the Germans in two world wars, plus the continuity of interest which such a trusteeship would stimulate is sufficient insurance that we can be trusted to deal with the problem. The unnatural destruction of this industry would, on the other hand, be 80 certain, in my judgment, to provoke sympathy for the Germans that we would create friends both in this country and abroad for the Germans, whereas now most of the peoples of the world are thoroughly antipathetic to them. The other fundamental point upon which I feel we differ is the matter of the trial and punishment of those Germans who are responsible for crimes and depreda- tions. Under the plan proposed by Mr. Morgenthau, the so-called arch-criminals shall be put to death by the mili- tary without provision for any trial and upon more identi- fication after apprehension. The method of dealing with these and other criminals requires careful thought and a well-defined procedure. Such procedure must embody, in my judgment, at least the rudimentary aspects of the Bill of Rights, namely, notification to the accused of the charge, the right to be heard and, within reason- able limits, to call witnesses in his defense. I do not SECRET 53 -4- mean to favor the institution of state trials or to introduce any cumbersome machinery but the very punishment of these men in a dignified manner oon- sistent with the advance of civilization, will have all the greater effect upon posterity. Furthermore, it will afford the most effective way of making a record of the Nazi system of terrorism and of the effort of the Allies to terminate the system and pre- vent its recurrence. I am disposed to believe that at least as to the chief Nazi officials, we should participate in an international tribunal constituted to try them. They should be charged with offences against the laws of the rules of war in that they have committed wanton and unnecessary cruelties in connection with the prose- oution of the war. This law of the Rules of War has been upheld by our own Supreme Court and will be the basis of judicial action against the Nazis. Even though these offences have not been committed against our troops, Iffeel that our moral position is better if we take our share in their conviction. Other war oriminals who have committed crimes in subjugated SECRET 54 -5- territory should be returned in accordance with the Moseow Declaration to those territories for trial by national military commissions having jurisdiction of the offence under the same Rules of War. I have great difficulty in finding any means whereby military com- missions may try and convict those responsible for excesses committed within Germany both before and during the war which have no relation to the conduct of the war. I would be prepared to construe broadly what con- stituted & violation of the Rules of War but there is a certain field in which I fear that external courts cannot move. Such courts would be without jurisdiction in precisely the same way that any foreign court would be without jurisdiction to try those who were guilty of, or condoned, lynching in our own country. The above are the two main points with which I differ from the proposed program submitted by the Secretary of the Treasury. Partition I have an open mind on partition and although I have given the matter substantial consideration I have, 55 -6- as yet, come to no conclusion as to wisdom or method of partition. I feel we cannot deal effectively with that subject until we have had an interchange of views with the English and the Russians. I, myself, seek further light on this subject. I, certainly, would not discourage any spontaneous effort toward separation of the country into two or more groups. Amputation I understand that there is some general recognition of the probability of Russia or the Poles taking East Prussia and some parts of Silesia. I suggest that we interpose no objection to this but that we take no part in the administration of the area. On the Western border the primary question is the matter of dealing with the Ruhr but it has. also been suggested. that the Rhinoland and the Saar be delivered to France. Naturally I an in favor of the automatic return of Alsace and Lorraine to France but though my mind is not irrevocably closed against it, I feel that the burden of proof lies on those who suggest giving France more territory. She will come out of this war with her Empire practically intact, with & reduced population and already possessing SECRET 56 -7- a very valuable bit of ore in the Longwy Briey area. To give her a substantial territory of German-speaking and German-bred people would create another problem in the balance of Europe. To counteract this, I would give France a share in the benefits of the internationaliza- tion of the Saar and the Ruhr and the advantage which this gives of what would in effect be an international barrier between France and Germany. There are certain other methods of punishment affecting the personal lives of individual Germans pro- posed by the Secretary of the Treasury to which I am opposed as constituting irritations of no fundamental value and, indeed, of considerable danger, but these are primarily matters of administration which I think need not be discussed at this time. In some part, at least, they had best be determined by those who have the primary responsibility for the administration of the occupation. AS a suggestion, I propose that during the interim period, which is all that we can deal with at the moment, the President be recommended to approve a program. generally in accord with the memorandum submitted by SECRET SECRET 57 -8- the Secretary of State at the meeting of the Cabinet Committee on Tuesday, September 5, except for a modifi- cation of subparagraph 2(h) of that memorandum and certain other conditions on which I hope we can all agree, which suggested changes I append hereto. Sin Hung h String SECRET SECRET trum stenism to F.D.R. 58 September 9, 1944 SUGGESTED CHANGES IN CABINET COMMITTEE RECOMMENDATIONS AS STATED IN PAPER SEPTEMBER 4 1944. To paragraph 2(a) should be added the following: "At least for en indefinite period Cermany shall be denied the means or power to manufacture or design aeroplanes or gliders of any sort whether military, commercial or private, and Germany shall have no license to operate my airlines. During this period no schools or courses for the study of air flight in any form shall be permitted. All machines, plants and other instruments which are peculiarly adapted to the manufacture of arms and lethal weapons of any sort shall be dismantled or destroyed." Paragraph 2(b) should be rewritten to read as follows: "All members of the Gestapo, vis., the so-called security or political police, prominent Nasis in whatever acti- vity they may have operated, substantially if not all members of the S.S. organizations, and others who are suspected of having taken part in or had responsibility for the perpetration of war crimes, should be apprehended and held for further disposition. Prompt and summary trials shall be held of those charged with such crimes and punishment should be swift and severe. Studies should be instituted at once to determine SECRET Insert at beginning of rewitte paragraph 2 (b) "Dissolution of the Nasi Party and all its affiliated and associated organizations should be effected immediately and ....... SECRET 58 -2- the procedures to be followed in such trials, and they should be cleared with the British, Russians, and French as quickly as possible, 80 that they can be communicated to the appropriate occupying authorities without delay. All laws discriminating against persons on grounds of race, color, creed, political activity or opinion, should be annulled." To Paragraph (e) should be added the following: "The territories of Germany which are to be ceded to other countries are understood to be all or most of East Prussia and some parts of Silesia. The question of the Rhine- land and the Saar is closely connected with the treatment of the Ruhr. Tie recommend 88 the present view of the United States that a strong control over the products of this area must be maintained by means of some form of international trusteeship of its products and resources. It. should not be obliterated as an industrial productive center, but it must be actively managed by others than Germans and otherwise completely taken from German domination. On the other hand no efforts shall be made to rebuild any of the destroyed plants in Germany until permission is given by appropriate Allied or United Nations authority." SECRET SECRET 60 -3- Substitute for paragraph (h) the follewing: "The primary objectives of our economic policy are: (1) the permanent elimination of German economic domination in Europe and (2) the conversion of German economic capacity in such manner that it will be so dependent upon imports and exports that Germany cannot by its own devices reconvert to war production." SECRET 61 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE TO Secretary Morgenthau September 9, 1944 FROM Fred Smith Regarding Gregory's story: I talked to him. He figured this all out himself. He said your father was a great humanitarian, and that you are 8. great humanitarian, and that you have been the leading light in the War Refugee Board. He said that obviously, the Jews abroad would have to have some reputation so that they could get restitution from the Germans for what the Germans did to them, and that this was a logical job for you to take on. He further said that through the War Refugee Board and Foreign Funds Control, you had a complete plan for restitution, and this is evidence, to his way of thinking, that you are going to undertake the job of seeing that restitution is made. He said that with all this evidence, he was certainly justified in assuming that he had stumbled onto a great story. He assured me that he is a friend of yours, and that he felt that securing restitution for these people was a job more im- portant than being Secretary of the Treasury. I think he has been reading too many bum detective stories. PHILADELP IA INVIRER - Scotember S, 1944 Morgenthau May Head Allied Rescue of Jews By NICHOLAS P. GREGORY Inquirer Washington Bureau WASHINGTON, Sept. 7.-Secretary of the Treasury Henry Mor- genthau, Jr., may become head of a new world organization, supported by the United Nations, designed to use its enorts to rescue the Jews against whom genization protably will demand the Nazis and their satellites economic, financial and resettle- have perpetrated some of the ment reparations. foulest crimes in history against SET UP TO AID VICTIMS any race, it was learned today. The War Refugee Board which The Secretary conferred with Mr. Morgenthau heads was estab- lished by executive order on Jan. 22. President Roosevelt yesterday and 1944. to take all measures possible today and, It was learned, presented to rescue the victims of enemy op- to him a blueprint of the new or- pression who are in imminent dan- ganization. Attending the confer- ger of death and otherwise to afford ence yesterday were Secretary of such victims all possible relief and War Henry L. Stimson and Secre- assistance consistent with the suc- tary of State Cordell Hull, who to- cessful prosecution of the war. gether with Mr. Morgenthauscon- The functions of the board in- stitute the War Refugee Board. clude the development of plans and programs and the inauguration of INFORMATION ON LOOTING effective measures in rescue. trans- Preliminary work In connection port, maintain and aid all of the vic- with handling war refugees already tims of enemy oppression. It is also has been undertaken and Mr. Mor- charged with the duty of establish- genthau has taken the most promi- ing havens of temporary refuge for nent part In this field as head of the such victims. War Refugee Board. In addition. HELD POST SINCE 1934 the Treasury Department has ob- tained extensive information with The upronted Jews of Europe regird to the real and personal perhaps represent the largest ele- projerty the Nazis have looted from ment in forced migration. the uprooted Jewsi in Germanv. Mr. Morgenthau has held the Húngary, Rumania, Poland. Greece, post of Secretary of the Treasury Jugoslavia, Denmark: and Holland. since Jan. 1. 1934. longer than any Mr. Morgenthau, it is said, is de- Secretary of the Treasury in the his- termined to play an important part tory of the United States. in a scheme to save world Jewry, He has never been Identified with which in the last 20 years has been any Jewish organizations. which in under constant attack. With the recent years have been involved in Allied armies poised on the German disagreements over the question of borders and. early occupation of Ger- sesettling The Jews in Palestins. many predicted. the need for a new If he kes the new post- M) organization to begin the rehabilita- Morgenthay may resign as Secretary tion of world Jewry becomes appar- of the Treasury. although this is not rnt. certain. TIME TO COLLECT FACTS The defeat of Germany will re- move the most virulent forms of anti-Semitism. and the time. If is fell, in ripe to begin to collect and establish facts concerning the actual conditions of the uprooted European Jews, and possibly to help create the necessary agencies for their re- settlement. For example, more than 500,000 Jews alone have escaped to Russia. while millions have been murdered by the Nazis and all apparent traces of their origin, wealth and posses- signs have been oblite rated. In many cases the Nazis have stripped Jews in other countries of all their per- sonal and real wealth. The new or- Regraded Unclassified 63 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE Sept. 9. 1944 TO FROM Mr. Haae Secretary M. Mongenthau Subject Current Developments in the High-grade Security Markets I. Taxable Treasury Bonds Strong; Partially Tax-exempt Bonds Decline During August During the month of August, and 80 far this month, tax- able issues of Treasury securities have been strong. Tax- able issues as a whole are at or near their highs for this year. The Federal Reserve has had occasion, during this period, to dispose of about $65 millions of taxable 2 per- cents in the interest of maintaining the pattern of rates. In contrast with the behavior of taxable issues, par- tially tax-exempt Treasury bonds not callable for five years or longer (whose prices are not greatly influenced by the approach of maturity) have declined, on the average, by about 14/32 since the end of July, although the behavior of individual issues has varied widely. One reason advanced in the press for this decline of partially tax-exempts, which hitherto have been rather strong due to their growing scarcity, is that these issues have been pushed 80 high in price that, for taxpayers not currently paying an excess profits tax, the price exceeds the value of the exemption, 80 that many such taxpayers have ceased buying, and have, in some cases, disposed of some of the partially tax-exempts they already held. Another likely reason 1s apprehension on the part of holders of these securities that the corporation income tax may be repealed or drastically reduced after the war, thereby wiping out or greatly curtailing the value of the partial tax-exemption privilege. II. Excess Reserves Decline Excess reserves of member banks reached their peak in the Fifth War Loan on July 12, when they stood at $1,563 millions (Chart I). From that level, they have declined to $846 millions on September 6, the latest weekly report date. Principal causes of this decline have been an in- crease of about $1,090 millions in required reserves re- sulting mainly from the transfer of funds from war loan to private deposits, and an increase of about $870 millions 64 Secretary Morgenthau - 2 in money in circulation, which, following a temporary check in July, has resumed its upward movement. Federal Reserve purchases of Government securities offset approximately $1,210 millions of this drain. III. Movement of Treasury Bills to Reserve Banks Resumed The increase of war loan deposits against which no reserves are required, during the Fifth War Loan, increased the excess reserves of member banks so that they were able to increase their investments in Treasury bills, which reached a peak during July. Figures for all commercial banks reporting to the Treasury Survey of Ownership of Government Securities are shown on a month-end basis in Chart II, and reveal commercial bank holdings continuing upward to the end of July; but figures for weekly reporting member banks in 101 leading cities (which hold about two- thirds of the bills held by all commercial banks) indicate that the peak related to the Fifth War Loan was actually about July 19, when the weekly reporting banks held $3.9 billions of bills. Since that date, the rise in required reserves, as the proceeds of the War Loan are spent and are redeposited as private deposits against which reserves are required, has resulted in a decline in the bill holdings of weekly reporting member banks of $0.8 billion by August 30. In the same period, the outstanding bill volume increased by $0.6 billion. These two movements were approximately bal- anced by an increase in the bill holdings of the Federal Reserve Banks by about $1.5 billions. IV. About Half of Fifth War Loan Increase of Security Loans Now Liquidated From a pre-drive level of $901 millions on May 31, loans of weekly reporting member banks, for the purpose of carrying Government securities, increased to $2,817 millions on July 12. This 18 a rise of $1,916 millions, or more than 200 percent. As of the latest report date, August 30, more than one-half of this increase had been liquidated and loans of weekly reporting member banks against Government securities stood at $1,714 millions. It is also interesting to note that practically all the activity in bank loans in recent months has been in these 65 Secretary Morgenthau - 3 security loans. Commercial loans of weekly reporting member banks amounted to $5,984 millions on August 30, only $138 millions above their low for the year which they reached on May 31. V. About 86 Percent of September Notes Exchanged The offer, open August 24-26, to the owners of the two issues of Treasury notes due September 15, to exchange for them an additional issue of the 1 percent Treasury note due March 15, 1946, was accepted by the holders of about 86 per- cent of the maturing issues. Details are shown in the following table: : Amount Amount Percent Maturing issue outstanding exchanged exchanged (In millions of dollars) 3/4 percent taxable note 635 602 95 1 percent tax-exempt note 283 185 65 Total 918 787 86 It was, of course, to be expected that the exchange of a wholly tax-exempt note into a taxable note would be smaller than that of the taxable maturity. The exchange, however, was somewhat less than in the case of the similar transaction in March. The March 1946 note has behaved well in the market during the operation. It 1s currently quoted at 100-5/32+ bid, as compared with 100-6/32+ bid on August 23, the day before the exchange was announced. 66 Secretary Morgenthau - 4 VI. New Corporate and Municipal Financing Revives in August; Mostly Refunding Following the close of the Fifth War Loan, there was a sharp rise in the volume of new bond flotations in the New York market. During the five weeks ended September 1, such offerings to the public amounted to $191 millions, of which about $140 millions were corporate issues and $51 mil- lions municipal issues. About $144 millions, or 75 percent, of this financing, consisted of refundings and most of the new money financing was in the municipal field. A $65 millions offering of bonds of Armour and Company was announced on Thursday, September 7, and some large finan- cing operations are in prospect in the near future, including $100 millions of bonds to be offered by the Great Northern Railway Company, $55 millions by the Oregon-Washington Railroad and Navigation Company, and $155 millions by Common- wealth Edison Company. All of the issues named are refund- ing issues, and do not, therefore, indicate potential interference with Treasury war finance operations. They reflect a current ease in the money market which 1s favorable to the continued success of Treasury financing operations. VII. Corporate and Municipal Bonds at High Levels High-grade corporate bonds are currently quoted at price levels close to their all-time peak. The Treasury average of the yields of such securities, moving inversely to prices, stood at 2.55 percent at yesterday's close, & level attained twice before (early in 1941 and in the summer of 1943), but not surpassed on either occasion. High-grade municipals are now priced slightly below their all-time highs, which were reached early in August. 67 CHART I MEMBER BANK EXCESS RESERVES 1943 1944 1945 DEC. FEB. APR. JUNE AUG. OCT. DEC. FEB. APR. JUNE AUG DOLLARS OCT. DEC. FEB. APR. JUNE DOLLARS Billions Billions 2.8 2.8 2.4 2.4 2.0 2.0 All Member Banks 1.6 1.6 1.2 1.2 .8 .8 .4 .4 0 o .8 .8 .4 .4 New York City Banks o o -.4 -.4 .4 .4 Chicago Banks o o -.4 DEC. FEB. APR. JUNE AUG. OCT. DEC. -.4 FEB APR. JUNE AUG. OCT. DEC. FEB. APR. JUNE 1942 1943 1944 1945 Office of the Secretary of the Treasury Division of Research and Statement F-251-C 68 CHART II OWNERSHIP OF TREASURY BILLS, BY TYPE OF INVESTOR End of Month Figures DOLLARS DOLLARS Billions Commercial Banks* Billions All Others 8 2 6 O A J A o D F A J A o D F A J A 0 D F A J 1942 1943 1944 1945 4 DOLLARS Billions Total 2 14 0 12 AJAODFAJAODFAJAODFAJ 1942 1943 1944 1945 DOLLARS 10 Billions Federal Reserve Banks 8 8 6 6 4 4 2 2 0 o A J A o D F A J A o D F A J A o D F A J A J A o D F A J A o D F A J A 0 D F A J 1942 1943 1944 1945 1942 1943 1944 1945 *Banks reporting to Treasury Survey Office of the Secretary of the Treasury Division of Research and Statistics F-339 Regraded Unclassified 69 SEP 9 1944 Dear Peter: It was good to have your letter of September 1 and I am pleased to hear that you are so favorably impressed with conditions as you find them. I have heard that you and your group are getting along very well and I am sure you will be able to make a real contribution to the situation in ETO. I hope you have had an opportunity to talk with Major Brownley, the special service officer attached to General Doolittle's staff. He has handled a bond campaign for the Eighth Air Force with what appears to me to be great efficiency and effectiveness. He is, therefore, in a position to give you some first-hand reports on the way men react to bond promotion. I am very glad that you are having an opportunity to see conditions at first-hand in London and among our Forces. It is certainly a stimulating experience and one that those of us who have it will not soon forget. Mrs. Morgenthau has been trying to get a. few fall days on the farm, but we shall soon be back here and in the regular routine. She joins me in sending warmest regards, Sincerely, (Signed) Henry Mr. Peter Odegard c/o United States Embassy London, England GEF/fw 9/9/44 70 September 7, 1944 Dear Peter: I have heard that you and your group are getting along very well, and I am sure you will be able to make a contribution to the situation in ETO. I hope you have had an opportunity to talk with Major Brownley, the special service officer attached to General Doolittle's staff. He has handled a bond campaign for the Eighth Air Force with what appears to me to be great efficiency and effectiveness. He can give you some first-hand reports on the way men react to bond promotion. I am glad you are having an opportunity to see conditions at first-hand in London and among our Forces. It is excellent experience. Mrs. Morgenthau sends her best regards. Sincerely, Mr. Peter Odegard c/o United States Embassy London, England FS:mlf FE 71 FORVICTORY TREASURY DEPARTMENT BUY UNITED STATES WAR WASHINGTON 25 SONDS - STAMPS AIR MAIL LONDON AIR POUCH September 1, 1944 Dear Mr. Secretary: We have been on your trail and the fact that you were here before us has helped immensely. The men in the Eighth Air Force were particularly enthusiastic and expres- sed regret only that you could not stay longer. We have been working with and through General Cobbs' staff and hope within the next few weeks to have a fairly good understand- ing of the situation in ETO. We have hesitated to make any recommendations or any formal report until we are sure of our position. From what we have seen thus far, however, I am persuaded that we can be of considerable help. It has been a privilege to come here and see conditions at first hand, and we are grateful to you for the opportunity. Please give my best to Mrs. Morgenthau. Sincerely yours, Peters N. Odegand Peter H. Odegard Hon. Henry Morgenthau, Jr., Secretary of the Treasury, Washington, D. C. 72 SEP 9 1944 My dear Mr. Mayor: On my return to Washington after a brief absence I have read with great care your letter of August 29 in which you refer to Mr. Olrich's testimony of the previous day before a Congressional committee, and I have of course made appropriate inquiries. It is apparent that in writing your letter you had available only inadequate reports from the morning papers and did not have before you the information which Mr. Olrich presented to the committee. I am sending you a stenographic transcript of his testimony and I think you will find that it was limited to a purely factual account of the results of an investiga- tion of statements you made on August 22 before the Senate War Investigating Committee. If there is any error in his statements I know that he would appreciate, as I would, being informed about it. There may of course be flaws in our pricing policy, but I feel sure that there is no warrant for the belief which you seem to consider credible that a plan is be- ing followed of high catalogue pricing for the purpose "of discouraging sales to legitimate purchasers, then dumping to speculators." Our records certainly do not support any such suspicion, for they show a rather close correspondence between catalogue prices and actual sales. I realize that in your Congressional appearance you were interested principally in advocating preferential treatment to state and local governments in the acqui- sition of surplus war materials. The controlling policy in that regard will, as you know, be settled shortly by Congress as a part of the surplus property legislation which is now in conference. I an asking Mr. Olrich, 73 - 2 - as soon as we know what legislation we will have, to discuss the problem with your representatives in an attempt to have a little better understanding in the future as to our respective needs and objectives. Moreover, Mr. Clayton, who presently directs all policies as to surplus property disposal, will doubt- less be interested in gaining the benefit of your views. I am therefore sending a copy of this letter to him. Sincerely yours, (Signed) M Morgenthau, Jr. Secretary of the Treasury. The Honorable Fiorello H. LaGuardia Mayor of the City of New York New York, New York TJL HEG/mah CITY OF NEW YORK OFFICE OF THE MAYOR NEW YORK 7. N.Y August 29, 1944 Honorable Henry Morgenthau, Jr. Secretary of the Treasury Washington, D. C. My dear Mr. Secretary: According to the press this morning, carrying testimony of a Mr. Olrich, representing your department, I think you should know that his facts were inaccurate and his conclusions erroneous, I will ignore entire- ly his characterization which is typical of anyone having something to hide. Why did Mr. Olrich refrain from giving the Committee more information concerning the Knickerbocker Building and Mortgage Company? Why did he not discuss Friedhoff and Grossmen? His defense was an attack on the Mayor who was called before the Committee and who testified in the public interest. It seems to me that the Treasury Department should be aiding reputable dealers and agencies of government and incidentally our own police department in checking sales and methods of purchasing surplus supplies, instead of resorting to abuse, misstatements and misrepresentations to gloss over a very bad situation, I know how busy you are but I deem it necessary in the public interest that a check be made in your own department as to the methods employed, the destination of supplies end the business stending and character of individuals who seemingly have an "in" with agencies disposing of surplus supplies. How is it possible for a concern, not usually engaged in merchendizing, to have samples when the treasury representative says that the article has not yet been released? Yet a definite offer was made and samples exhibited and delivered, Two hundred thousand cases of milk were offered for sale. What does Mr. Olrich do with that. He simply glosses over it and says that the milk was sold for menufacturing purpose and "not for human consumption." This quote is taken verbatim from a quotation in the press. If this milk was not intended for human consumption then how is it that the government did not take the necessary precaution that it would not be peddled for human consumption, Regraded Unclassified Will Xr. Olrich testify that this milk did not find its way into ice cream? I can assure you, 15. Secretary, it did not in New York City for we nipped it. We ex- posed the culprit. Instend of abusing the Hayor why did Mr. Olrich not devote a little time to trace the milk and ascertain if it was actually sold and used for human consumption. Incidentally the milk was probably sold by the For Food Administration, but it seems Hr. Olrich was not aware of that. Cataloguing of surplus. supplies by the Treasury Department, I think you should know, is so presented as to discourage legitimate purchasers; the plan being, I on informed, to roll up C record of refusals end establish a record of inability to sell and then to sell at junk value. This gives the boys on the incide en opportunity to wait and then moke e killing. For instance on August 1st, 1944 your catalogue lists, under Class 38 a new Addressograph Multigraph Machine, Model 904 B, 110-V,DC, at a price of $174.68, F.O.B. shipping point. The Addressograph Company offers the same machine delivered at the same price, with one year guaranty, with choice of either DC or AC na required. Then there is the Anril 15, 1944 offer of Automobile Wax London Coach, "Taiz" (Group 18) at 66 cents a pound, F.O.B. shipping point, while the same may be purchased from the nanufacturer, R. M. Hollingshead, at 48 cents a pound delivered, This wax end other articles will eventually be sold as junk after a record is piled up of inability to sell to the legitimate trade. I now submit a list of items offered by your Department with prices at shipping point with a comparison of market prices delivered. This is not at all accidental. It is in keeping with the plan I have indicated of dis- couraging sales to legitimate purchasers, then dumping to speculators on the theory that no market was available, Here is the list: Treasury Catalog of Available Property Region No. 2, July 1, 1944 Shipping Treasury n.y.ecty Dept. of Class Description Point Unit Unit Price Purchase Unit Price, 14 Toilet Tissue Pa. hundred $ 5.24 $ 4.73 Rolls 25 Clips, cable, 3.m U-Shane Y. each .25 18 25 Nails, Flooring Cut 8D Pa. keg 6.55 5.25 Regraded Unclassified -3- Shipping Treasury Dept. of Purchase Description Point Unit Unit Price Unit Price 26 Insulators, porcelain pin 5000 V. 1ª thread Pa. each .15 .1452 27 Insulators, Hem- ingway No. 19, Glass, Clear Pa. each .07 .6899 32 Bases, Porcelain Cut-out Plug Pa, each .58 .55 32 Electrolets 1" Killark, #OUB-1 Pa. each .34 .3149 1" Killark, #OUB-3 Pa, each .55 .5117 14" threaded Pa, each .88 .8266 Killark #OUB-4 2" Killark OLL-6 Pa. each 1.68 1.57 21" Killark OLI-7 pa. each 3.50 3.28 21" Killark OIR-7 Pa, each 3.50 3.28 32 Lamps G.E. service, clear, floodlight, 250 watt Pa. each .69 .64 Inside frost, 15 watt Pa, each .06 .05 Mogul base, 6000 watt Pa, each .81 .76 65 Mercury in ironpipe vials Pa. lb. 2.16 2.05 (U.S.P.) 66 Polish, stove, Black Beauty N.J. each .05 (2) oz.can) .06 (6 oz.bot 75 Colanders, Retinned, 161" N.J. each 2.06 (used) 2.98 (new) 77 Chinaware, soup plate, white, 9" N.Y. dozen 2.76 2.65 51 Pots, sauce, 25 gal. etc. N.J. each 41.06 (used) 15.90 (new) (The catalog de- scription is the same as L. & G. No. 72 which is the standard one bought by the Dept. of Purchase) -4- Shipping Treasury Dept. of Purchase ESS Description Point Unit Unit Price Unit Price 14 Lens tissue N.Y. each .04 .06 (Treasury charges .04 for books of 25 sheets, 32" X 5½". Department of Purchase pays .06 for books of 50 sheets, 4" * 6".) 41 Tubes X-ray, Coolidge Universal broad focus, 7" N.J. each 61,88 (used) 80.00 (new) X-ray, Coolidge, Universal fine focus N.J. each 61.88 (used) 80.00 (new) (The Treasury description is unclear. It apparently relates to bulb-type tubes on which the trade-in allowance for used tubes is $15. Used x-ray tubes seldom give long service.) Treasury Catalog of Available Property Region No. 2, August 1. 1944 I Shipping Treasury Dept. of Purchase Class Description Point Unit Unit Price Unit Price Boards, Arch (Clip Board) Pa. each .36 (used) .275 (new) 79 Ribbons Typewriter-Blue- Remington Pa, each .18 .145 Typewriter-Blue- Record Pa. each .18 .1575 Noiseless-Medium Inked-L. C.Smith Pa. each .18 .145 Underwood Pa. each .18 .145 38. Dictaphone Model A12 N.Y. each 105.88 (used) 192.50 (new) (The Department of Purchase can buy rebuilt machines, delivered, with a one-year guarantee, for approximately $125.) (Millivoltmeters are offered by the Treasury at $84. each while anyone can buy the same meter from Weston Electrical Instrument Corporation, according to their catalogue #12 A, page 50, for $20. each.) 72 Cards, guide, daily (Dept. of Purchase cards are 143 lb. index bristol, 1 to 31, 5 R 8", buff, the heaviest index bristol cards mamufactured.) 1/5 cut Pa, set .49 .20 Regraded Unclassified -5- Now, Mr. Secretary, I know that the whole list above cited is but an infinitesimal part of a fraction of one percent of what is now declared surplus. It indicates however, how, from the method now employed abuses running into real Big figures will be possible later, unless this method is immediately changed and the individuals with whom the government does business more cerefully scrutinized. I could go on indefinitely, and I will be very happy to go through all of your catalogues for similar comparisons, if that should be necessary, in order to convince you that the gentleman testifying before the House Committee yesterday was obviously, knowingly inaccurate as well as to demonstrate the unbusinesslike and destructive policy now being operated in the sale of surplus supplies. There is no doubt in my mind that you do not countenance such practise and I feel very free to say that the quicker this condition is corrected the better it will be. Very truly yours, Mayor Regraded Unclassified 79 Treasury Department Division of Monetary Research Date September 9.191 To: Secretary Morgenthau, From: Mr. White You will be interested in reading Mr. Montoulieu's letter. 80 SEP 9 1944 My dear Mr. President: In accordance with your request of September 4, 1944, I as enclosing a proposed reply for your signs- ture to the letter of Mr. Montoulieu dated August 24, 1944. Mr. Nontoulieu's letter 10 returned herewith. Faithfully yours, (Higned) M. Morgenthaw. Jr. Secretary of the Treasury. The President, The White House. Enclosures. EMBilr 9/8/44 RettoRm5323 81 My dear Mr. Minister: I an glad to have your letter of August 24, 1944, on these natters which are of so much interest to me. I wish it had been possible for no to be present at the Harvard Club of Booton to join with you and the others in colebrating the fortisth reunion of the Class of 1904. Pressure of public business, as you understand, made it impossible this time. When the war is over, I hope I shall have the pleasure of participating again in the reunions of our college class. It is gratifying to hear from you about the Success of the United Nations Henstary ani Financial Conference and your view of the importance of the International Monetary Fund and the International Bank for Reconstruction and Development. The United Nations have shown at Bretton Woods that they are determined to work together for peace and prosperity as they now fight together for freeden and demeracy. Secretary Morganthau has informed no of the splendid spirit of cooperation that was manifested throughout the Conference. He has spoken of the excellent work of the representatives of the American Republics, and particularly of the Relegations of Cuba, Headeo and Brasil. I have faith that this same spirit of cooperation will bring an era of peace and presperity to all countries, great and small. Sincerely yours, Henerable Eduardo I. Montoulieu, Republica de Cuba, Condsion de Ponento Macional, Havana, Cubs. Regraded Unclassified 82 mr white THE WHITE HOUSE WASHINGTON September 4, 1944. MEMORANDUM FOR THE SECRETARY OF THE TREASURY FOR PREPARATION OF REPLY FOR MY SIGNATURE. F. D. R. REPUBLICA DE CUBA COMISION DE FOMENTO NACIONAL Havana, August 24, 1944. My dear Mr. President: After attending the forty-year reunion of our Class of 1904 at Harvard, and listening to your very cor- dial message as read by Eddy Taft at the dinner in the Boston Harvard Club, I went to Bretton Woods as Chairman of the Cuban Delegation for the International Monetary Conference, in my capacity of Minister of the Treasury of Cuba. It was my priviledge and pleasure to cooperate with the American Delegation at every opportunity that arose and I feel confident that in its very important and lengthy deliberations the Conference accomplished the unbelievable, that is, the unanimous approval by the representatives of forty four nations of a set of rules and regulations which, when observed, will stabilize the currencies of the world and will make possible the reconstruction of devastated countries and the development of the productive resources of underpriviledged countries. By a mere coincidence, it was the Cuban Delega- tion that opened the Conference with the report on credentials and, also, the nation that closed its sesions by supporting the motion of thanks proposed by the Delegation from Brazil, and it was on this occasion that I had the opportunity to state that it was only your prestige that could work the mi- racle of making unanimous the agreement on the deliberations of these forty four nations on such difficult and technical matters. May I not add a word of congratulation on this momentous occasion in which, besides the triunphal advance of the Allied Troops in all fronts, the United and Associat- ed Nations signed this agreement, and your political party nominates you to again rule the destinies of the United States and, withal, inspire and guide those of the world? Very sincerely and cordially yours, Eduardo I. Montoulieu Harvard, 1904 The Honorable Franklin D. Roosevelt President of the United States The White House Washington, D. C. Regraded Unclassified EIM/fhs. 84 FOREIGN ECONOMIC ADMINISTRATION WASHINGTON September 9, 1944 Dear Secretary Morgenthau: Thank you very much for your letter of September 8 on the question of informing the public on the Fund and the Bank. I will be glad to talk to Harry White some more along the lines indicated in my letter of July 26. Sincerely yours, Oscar lox The Honorable Henry Morgenthau, Jr. The Secretary of the Treasury. Treasury Department 85 Division of Monetary Research Date 9/11/44 19 To: Mrs. McHugh Handed to the Secretary by Dr. Kung at 3:15, Sept. 9th. Mr. White wanted this returned to you; we have copies. L. Shanahan MR, WHITE Branch 2058 - Room 2141 TO: 3:15 3: 86 7. H. Kung T. L. soong Liu Chi- minister Plenipotentiary - Counseln of Embassy C.T. Chi asst to Dr. Kung From: Mr. FitzGerald 87 MINISTRY OF FINANCE NATIONAL GOVERNMENT OF CHINA September 9, 1944. The Honorable Henry Morgenthau Secretary of the Treasury Washington, D.C. Dear Mr. Morgenthau, Since our conversations at Bretton Woods, additional information was received from China substantiating the fact that the cost of the construction of the Chengtu airfields was always regarded as constituting a separate account, which the United States Government undertook to pay. In a memorandum, No. 111, dated January 8, 1944, General Hearn referred to 6. reply from General Marshall to his inquiry which stated that "The United States will bear the cost of labor and material for Chengtu airdrome construction at a. rate of exchange to be arrived at under negotiation now. in progress." On January 12, General Stillwell transmitted to Generalissimo Chiang a telegraphic message from President Roosevelt with reference to the Chengtu airfields, part of which reads; "I'll undertake to make available the necessary fund through lend-lease appropriation if that will hasten the completion of the work on the desired schedule." The difficulty that has prevented a settlement of the problem of regular military expenses as well as special accounts for airfields constructions of the U.S. armed forces in China is Regraded Unclassified 88 MINISTRY OF FINANCE NATIONAL GOVERNMENT OF CHINA PAGE 2 the rate of conversion. Some of the advances were made by the Chinese Government and others were borrowed from the Central Bank of China. Since we cannot alter our exchange rate at present without weakening confidence in our currency and boosting up prices further, we have been trying to find other ways of settling the problem. After considering various alternatives, it appears that the simplest way of settling the problem is for the United States Government to reimburse China according to the official rate of exchange and receive in addition a pro rata contribution from the Chinese Government the exact amount of which to be agreed upon by the two governments. Since my Government desires that I return soon to China and since one of the purposes of my trip here is to settle this problem with you personally, I will deeply appreciate it if a settlement can be made at the earliest possible moment. With best personal regards, Sincerely yours, Regraded Unclassified 89 SEP 9 1944 My dear Mr. President: There is attached 8. report of Lend-Lease purchases made by the Treasury Procurement Division for the Soviet government indicating the availability of cargo for September. The inventory of material in storage as of September 1, 1944, was 204,356 tons or 3,758 tons less than the August 1st inventory. Production scheduled for September shows an increase of 44,628 tons as compared with August. Faithfully yours, (Wigned) H. Morgenthau. Jr. The President The White House WFBrennan/jj (9-8-44) 06 TREASURY DEPARTMENT - U. S. S. R. MATERIALS AVAILABLE FROM STORAGE AND PRODUCTION DURING SEPTEMBER, 1944 (IN 2000 LB. TONS) PRIORITY CARGOES FOR PORT AREAS STORAGE PRODUCTION SPECIFIED TO DATE COMMODITY SEPTEMBER 1, 1944 DURING SEPTEMBER TOTAL AVAILABLE FOR SEPTEMBER ALUMINUM 4,199 1,179 5,378 829 AUTOMOTIVE EQUIPMENT AND PARTS 86 86 BEARINGS 334 673 1,007 1,007 BRASS AND BRONZE 16,733 3 16,736 16,736 CHEMICALS 12,168 786 12,954 8,588 CLOTHING AND Textiles 399 399 CONSTRUCTION MACHINERY 441 441 COPPER IN VARIOUS FORMS 17,014 6,727 23,741 8,680 FERRO-ALLOY 203 203 GRAPHITE PRODUCTS 435 435 HAND AND CUTTING TOOLS 1,291 1,291 INDUSTRIAL MACHINERY 49,075 34,830 83,905 36,310* LEAD AND LEAD ALLOYS 13 13 NICKEL AND NICKEL PRODUCTS 53 784 837 NON-Ferrous METALS, OTHER 165 247 412 112 NON-METALLIC MINERALS 35 35 35 PAPER AND PAPER PRODUCTS 1,730 2,694 4,424 2,184 PLASTICS 2,941 2,941 RUBBER 1,625 6,483 8,108 4,816 STEEL, ALLOY AND SPECIAL 7,319 7,108 14,427 14,427 STEEL, CARBON 30,659 69,047 99,706 27,720 STEEL, PIPE AND TUBINO 40,231 4,211 44,442 1,556 STEEL, RAILS 13,581 229 13,810 13,810 TIN PLATE 5,854 5,854 3,696 ZINC 24 24 24 TOTAL 204,356 137,253 341,609 141,030 *In addition, all available tonnage applicable to the 011 Refinery Program is classed as priority cargo for prompt shipment to ports. 91 25 September 9. 1944. Ny dear General Wesson: The Secretary has asked - to asknovl- edge your memorandum of September 5, which encloses the passhlet outitled, "Status of the Seviet A1d Program". Be is very glad to have the facts and figures contained in the leaflet, and appreci- ates year sending it to him. Sincerely yours, Signed) H. S Kint. H. S. Klets, Private Secretary. Major General c. M. Wesson, Director, Division for Seviet Supply, Foreign Economic Administration, Vashington 25, D. G. GEF/dbs 92 FOREIGN ECONOMIC ADMINISTRATION WASHINGTON 25, D.C. September 5, 1944 MEMORANDUM To: The Honorable Henry Morgenthau From: Maj. Gen. C. M. Wesson Cnew Director, Division for Soviet Supply Subject: Status of the Soviet Aid Program Attached hereto is your copy of the Status of the Soviet Aid Program as of June 31, 1944. This report sets forth the performance of the United States in fulfilling its obligations under the Third Soviet Protocol and summarizes the aid furnished the U.S.S.R. during the period of the three Protocols, October 1, 1941 to date. 93 SECRET Copy TRA STATUS OF THE SOVIET AID PROGRAM AS OF JUNE 30, 1944 Prepared for the President's Soviet Protocol Committee by the Foreign Economic Administration August 30, 1944 SECRET STATUS OF THE SOVIET AID PROGRAM THIRD PROTOCOL PERFORMANCE The Third Soviet Protocol which went into effect on July 1, 1943 terminated on June 30, 1944. During the twelve month period the United States exceeded its shipping commitment by aiding in the shipment from North America to the U.S.S.R. of 5,899,000 long tons of cargo, 1,346,000 long tons or 30 percent in excess of protocol promises and 57 percent of the total cargo shipped under the first three protocols, October 1, 1941 to date. In nearly all instances U. S. commitments to make supplies available for shipment were met in full. In some instances the increase in shipping allowed increases in production be- yond the quantities promised. Stocks on hand on June 30, 1944 amounted to approximately 815,000 long tons of cargo as compared with stocks estimated at 1,100,000 long tons on June 30, 1943. Cargo shipped during the Third Protocol period and during the month of June 1944 is summarized as follows: June 1944 July 1, 1943 to June 30, 1944 Long Tons Percent Long Tons Percent U. S. SUPPLIES Trucks and Other Vehicles 64,100 12 679,100 12 Metals 122,600 23 1,009,500 17 Chemicals and Explosives 27,800 5 441,500 8 Petroleum Products * 88,100 16 606,900 10 Machinery and Equipment 60,500 11 488,300 8 Food 81,800 15 1,734,000 29 Other U. S. 43,200 8 602,400 10 U.S. TOTAL 488,100 90 5,561,700 94 BRITISH AND CANADIAN SUPPLIES 55,400 10 337,500 6 TOTAL 543,500 100 5,899,200 100 * Includes clearance through the Persian Corridor of 21,000 long tons in June and 153,500 long tons July 1943 through June 1944 of Petroleum Products supplied by the U.K. at Abadan and replaced to U.K. areas by the U.S. Noteworthy among the individual items shipped during. the Third Protocol were: 5,763 Aircraft, 1,758 Medium Tanks, 4,137 Other Combat Vehicles, 1,138 Ordnance Service Trucks, 143,065 Cargo Trucks including 21,012 Jeeps, 12,716 Motorcycles, 2,610 Artillery Tractors, 162,069 tons of Explosives exclusive of Ammunition, 339 Locomotives, 1,640 Flat Cars, 3,213 Marine Engines, 1,760,750 short tons of Foodstuffs, $442,445,000 of Machinery and Equipment, 85,236 short tons of Aluminum, 142,718 short tons of copper and its basic products, 784,254 short tons of Steel and 302,981 short tons of Chemicals. Of the 5,763 U.S. manufactured Aircraft sent to the U.S.S.R. during the period 3,233 were flown from Fairbanks, Alaska, 306 were shipped by water to North Russia, 1,732 were shipped by water to the Persian Gulf for assembly at Abadan, 463 left Miami for flight- delivery via North Africa and Abadan and 29 were Navy Patrol Bombers flown from the U.S. by Soviet crews. Of the total departed 1,732 were in fulfillment of U.K. Protocol commit- ments. Aid to the U.S.S.R. continues without interruption in accordance with schedules formu- lated for a proposed Fourth Protocol to run from July 1, 1944 to June 30, 1945. 0-2283 SECRET Sheet 2 PERFORMANCE UNDER THE FIRST THREE PROTOCOLS OCTOBER I, 1941 TO JUNE 30, 1944 From the beginning of the Moscow (First) Protocol period October 1, 1941 to the end of the Third Protocol period a total of 10,386,000 long tons of cargo have been shipped from North America to the U.S.S.R. First Protocol 1,564,000 Second Protocol 2,923,000 Third Protocol 5,899,000 Total 10,386,000 Over 90 percent of the cargo shipped was comprised of supplies made available by the U.S. in fulfillment of its Protocol obligations. Notable among the individual items shipped during the period of the three Protocols were: 10,890 Aircraft, 4,986 Tanks, 5,382 Combat Vehicles, 1,518 Ordnance Service Vehicles, 279,951 Cargo Trucks including 43,462 Jeeps, 24,116 Motorcycles, 4,503 Artillery Tractors, 246,020 tons of Explosives exclusive of Ammunition, 339 Locomotives, 1,640 Flat Cars, 4,800 Marine Engines, 3,079,689 short tons of Foodstuffs, $655,589,000 worth of Machinery and Equipment, 294,000 short tons of Copper and its basic products, 155,761 short tons of Alumi- num, 1,694,978 short tons of Steel and 460,411 short tons of Chemicals. Of the 10,890 U.S. manufactured Aircraft shipped, 4,307 were flown from Fairbanks, Alaska, 1,483 were shipped by water to North Russia, 4,036 were shipped by water to the Persian Gulf for assembly at Abadan, 1,035 left Miami for flight-delivery via North Africa and Abadan and 29 Navy Patrol Bombers were flown from the U.S. by Soviet crews. Of the total departed, 2,727 were in fulfillment of U.K. Protocol commitments and 176 were for re- imbursement to U.K. account for planes diverted to U.S. Forces. Foreign Economic Administration AUGUST 30, 1944 6-8888 SHIPMENTS TO U.S.S.R. (FIGURES SHOW GROSS LONG TONS SHIPPED TO JUNE 30, 1944) 213,000 : 2,240,000 4,235,000 a Status of Total Shipments As of June 30, 1944 Route Shipped Arrived En Route Lost North Russia 100.0% 83.5% 3.5%* 13.0% Persian Gulf 100.0 85.4 10.2 4.4 Soviet Far East 100.0 92.6 6.8 0.6 Soviet Aretic 100.0 86.8 13.2 0.0 3,698,000 Total 100.0 88.0 7.4 4.6 . Represents quantities diverted to U.K. NOTE: SHIPMENTS TO THE PERSIAN GULF ARE MADE BY SEVERAL ROUTES. THE TONNAGE SHOWN IS THE TOTAL FOR ALL ROUTES. SECRET win Regraded Unclassified SECRET SHIPMENTS TO U.S.S.R. SHIPMENTS, ARRIVALS AND LOSSES 10 10 LOST EN ROUTE 8 8 CUMULATIVE-MILLIONS OF LONG TONS 6 6 EXPORTED 4 4 CUMULATIVE-MILLIONS OF LONG TONS 2 2 ARRIVED o o Oct Nov Dec Jan Feb Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mor Apr Moy Jun Jul Aug Sep Oct Nov Dec Jan Feb Mor Apr Moy Jun 1941 1942 1943 1944 NUMBER OF SHIPS THIRD PROTOCOL CLEARANCES SAILING EACH MONTH FROM U.S. PORTS 100 6 5 80 ACTUAL 4 60 3 40 PROTOCOL RATE 2 CUMULATIVE MILLIONS CUMULATIVE-MILLIONS OF LONG TONS 20 I o 0 Ocf Now Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Mar Apr Jun Jul Aug Sep Oct Nov Dec Jon Feb Mor Apr Mey 1 Jul, Aug Sep Oct Nov Dec Jan Feb Mor Apr Moy Jun 1941 1942 1943 1944 1943 1944 Foreign Economic Administration - SECRET EXPORTS AND AVAILABILITY OF SELECTED ITEMS CUMULATIVE SINCE OCTOBER I, 1941 Exported Lost En Route Quantity made available of Arrived U.S. centers of production BOMBERS PURSUIT PLANES (FOR U.S. PROTOCOL ACCOUNT) 4,000 5,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 o 0 Jul Aug Sep Oct Nov Dec Jon Feb Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug On Sep Oct Nov Dec Jon Feb Mor Apr May unr 1942 1943 1944 1942 1943 1944 MEDIUM TANKS ANTIAIRCRAFT GUNS 37 & 40 mm 4,000 6,000 5,000 3,000 4,000 2,000 3,000 2,000 1,000 1,000 o. o Jul Aug Sep Oct Nov Dec. Jam Feb Mor- Apr. Moy Jun Juli Aug Sep Oct Nov Dec Jan Feb Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jon Feb Mor Apr May Jun 1942 1943 1944 1942 1943 1944 JEEPS TRUCKS (EXCLUDING JEEPS) 50,000 250,000 40,000 200,000 30,000 150,000 20,000 100,000 10,000 50,000 o o Jul Aug Sep Oct Nov Dec Jan Feb Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jon Feb Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mor Apr May Jun 1942 1943 1944 1942 1943 1944 Foreign Economic Administration I SECRET EXPORTS AND AVAILABILITY OF SELECTED ITEMS CUMULATIVE SINCE OCTOBER 1, 1941 Exported Lost En Route Quantity mode available of Arrived U.S. centers of production FIELD TELEPHONES ARMY BOOTS 400 10 8 300 THOUSANDS 6 200 4 MILLIONS OF PAIRS 100 2 o o Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mor or Apr May Jun Jul Aug Sep Oct Nov Dec Jon Feb Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May unr un r 1942 1943 1944 1942 1943 1944 STEEL AND STEEL PRODUCTS ALUMINUM AND DURALUMINUM 2,000 200 Cumulative to June 30,1944 (Short Tons) Total Production for U.S.S.R. 2,070,535 Released for Redistribution 178,807 Exported to U.S.S.R. 1,694,978 1,500 150 Balance Avouable for Export 196,750 1,000 THOUSANDS OF TONS 100 THOUSANDS OF TONS 500 50 o o Jul Aug Sep Oct Nov Dec Jan Feb Mor Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jon Feb Mor Apr May Jun Jul Ang Sep Oct Nov Dec Jon Feb Mar Apr May Jun 1942 1943 1944 1942 1943 1944 CHEMICALS AND EXPLOSIVES FOODS 800 3,200 600 2,400 400 THOUSANDS OF TONS 1,600 200 800 THOUSANDS OF TONS o o Jul Aug Sep Oct Nov Dec Jon Feb or Mor Apr Moy Jun Jul Aug Sep Oct Nov Dec Jap Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mor Apr May lun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 1942 1943 1944 1942 1943 1944 Foreign Economic Administration - SECRET PROGRESS OF INDUSTRIAL PROJECTS FOR THE U.S.S.R. As of June 30, 1944 TIRE PLANT This $10,000,000 project, approved for procurement in November 1942, was designed to permit the production of a. minisum of 1,000,000 military tires a year from U.S.S.R. supplies of synthetic rubber and natural rubber obtained from shrubs. To utilise idle American equipment, the tire plant of the Ford Motor Company was purchased. The basic elements of the Ford plant have been supplemented with new equipment necessary to complete the production cycle for large size military tires. A power plant to supply the necessary steem and electrical power has been supplied at a cost of $1,204,000. Tire production equipment valued at approximately $8,500,000 has been made available by suppliers, of which approximately $7,255,000 has been exported. PETROLEUM REFINERY PROJECT This project, approved in September 1942, was developed to replace Soviet re- fining facilities destroyed by the German Aray. It was designed to produce aviation gas, motor gas, and lubricating oils. The entire project is valued at $39,600,000, nearly all of which has been exported. Nineteen U.S. engineers are now in the U.S.S.R. aiding in construction. Add1- tional equipment is being supplied as requested by the engineers. Orders have gone forward for additions to supplement the facilities already supplied. This additional equipment, approved in April 1944, is valued at $27,140,000. Contracts for the additions have been placed and fabrication has begun. R.R. BLOCK SIGNAL SYSTEM This project, approved in January 1943, is to permit automatic signal operation of a portion of the U.S.S.R. railroad system. When installed it will increase the carrying capacity of existing rail facilities without increase of rolling stock. The system, valued at $10,961,000, will provide signal and signal operating equipment for 3,000 In of track. Equipment valued at $6,464,000 has been nade ready for shipment of which $2,415,000 has been exported. In addition, 42 power plants of 40 KW each, all valued at $434,000, have been furnished to provide the necessary electricity to operate the system. Most of the power plants have been exported. POWER PROGRAM Under the Second Protocol program 320,000 KW of stationary steam generating equipment bas been made available. This includes nine units with & total capacity of 40,500 KW furnished with the petroleum refinery project, and two units totalling 11,000 KW furnished with the tire plant. The remaining units of the Second Protocol program totalling 268,500 KW are rated from 250 KW to 35,000 EW and are for installation as power utility plants. Over 90% of this equipment has been exported. Diesel generating equipment totalling 162,000 KW and 59 industrial steam boilers have been made avail- able for export. Power equipment approved under the Third Protocol is now being made available. The program consists of generating equipment as follows: Stationary Steam Generating Equipment 166,500 KW Mobile Diesel Generating Equipment 32,000 KW Mobile Steam Generating Equipment 217,000 KW Rydro-Electric Equipment 68,150 KW Stationary Diesel Generating Equipment 106,925 EW Total 590,575 KW Thirty-two industrial steam boilers and transmission equipment valued at $5,000,000 are also being supplied. ROLLING MILLS An aluminum rolling mill to supply aluminum sheet for the U.S.S.R. aircraft industry was approved for procurement in December 1941. of the total valued at $6,377,000, equipment valued at $6,305,000 has left manufacturers and $5,040,000 has been exported. An 18* merchant mill valued at $3,620,000 was placed in procurement in November 1942. Equipment valued at $2,982,000 has been made ready for shipment but none has been exported. A pipe fabricating mill was approved in February 1943, at a cost of $1,252,000. Equipment valued at $600,000 has been manufactured but none has been exported. A blooming mill, rail and structural mill, and a R.R. tie plate and splice bar mill, all estimated to cost $14,000,000, were placed in production in November 1943. None of this equipment has been nade avail- able to date. STEEL EXPANSION PROGRAM Since December 1942, suxiliary equipment for expansion of existing U.S.S.R. steel facilities has been approved for procurement. The equipment, when installed in the U.S.S.R., in expected to increase Soviet production of carbon steel ingots by 2,500,000 tons & year. To date, equipment valued at $13,300,000 has been placed in production, $3,768,000 has been made available at suppliers and $925,000 has been exported. OTHER PLANTS Date Made Approved Cost Available Exported in U.S. Wall Board Plant 11/17/42 $ 537,000 $ 524,000 o Glass Bulb and Tubing Plant 3/17/43 1,468,000 75,000 0 Voltol Pilot Plant 4/22/43 73,000 73,000 73,000 Nitric Acid Plant 11/27/42 528,000 447,000 394,000 Hydrogen Gas Plant 5/29/42 532,000 532,000 67,000 Hydrogen & Catalyst Plants 11/9/42 2,617,000 1,157,155 o Note: Above data have been adjusted to eliminate estimated costs of engineering and services. SECRET STATEMENT OF VESSELS SAILED TO U.S.S.R. As of June 30, 1944 Number of Vessels Sailing En Route Cargo Losses For For For For Date of Sailing Arrived as of Disch. North Persian Total Lost Soviet Soviet by June 30 in U.K. Month Russia Gulf Arctic Far East 1941 Oct 10 - - 5 15 14 - - 1 - Nov 9 1 - 3 13 12 - - 1 - Dec 14 7 - 4 25 22 - - 3 1 1942 Jan 20 - - 4 24 19 - 1 4 3 Feb 13 2 - 4 19 16 - - 3 1 Mar 31 6 - 6 43 32 - 4 7 9 Apr 62 6 - 10 78 46 - 13 19 - May 14 10 - 7 31 21 - 4 6 6 Jun 8 11 6 9 34 27 - - 7 6 Jul 2 5 16 12 35 34 - I 1 16 Aug 11 5 1 19 36 33 - - 3 1 Sep 4 8 - 17 29 29 - - - 10 Oct - 13 - 19 32 32 - - - - Nov - 8 - 26 34 32 - - 2 3 Dec 4 11 - 24 39 38 I 1 - I 1943 Jan 12 12 - 22 46 38 - 8 - - Feb 23* 7 - 28 58 36 - 20 2 1 Mar 1 19 - 26 46 44 - 1 1 2 Apr - 18 - 37 55 54 - - 1 1 May - 15 4 44 63 62 - I 1 - Jun - 4 5 45 54 54 - - - 2 Jul - 17 16 24 57 57 - - - - Aug - 24 7 38 $ 67 - - 2 2 Sep - 27 - 50 77 77 - - I - Oct 10 25 - 27 62 61 - - 1 - Nov 20* 25 - 32 77 76 - - 1 1 Dec 29* 21 - 39 89 87 - - 2 - 1944 Jan 30 26 - 27 83 82 - - 1 3 Feb 17** 16 - 19 52 51 - - 1 1 Mar 16 21 - 18 55 52 1 - 2 1 Apr - 35. - 25 60 59 - I 1 3 May - 36 - 40 76 49 27 - - - Jun - 24 9 43 76 9 67 - - - Total Oct. 1941 360 to June 30, 1944 465 64 753 1,642 1,422 95 52 73 73 * Includes one tanker from U.K. for U.S. Protocol Account. ** Includes two tankers from U.K. for U.S. Protocol Account. of the 1,642 sailings from October 1, 1941 to June 30, 1944, 781 were made by American vessels, 533 by Soviet vessels, 302 by American vessels transferred to Soviet registry, 25 by British vessels and 1 by a Swedish vessel. In addition to the 1,566 sailings, there were 107 ships that loaded partial cargoes in the U.S. for the U.S.S.R. In addition to the 73 ships shown above as lost, several ships have been sunk on their return voyages. ACTUAL SHIPMENTS COMPARED WITH PROTOCOL SHIPPING OBJECTIVES July 1943 - June 1944 FIGURES IN LONG TONS Atlantic Pacific Total Route Route Protocol Objective 2,142,852 2,410,716 4,553,568 Shipments 3,310,200* 2,589,000 5,899,200 Shipments in % of Objective 154.5% 107.4$ 129.5% * Includes 154,000 tons of petroleum products from Abadan for U.S. Protocol account, the material being replaced to U.K. from the U.S. 0-2000 SECRET STATEMENT OF CARGO SHIPPED TO U.S.S.R. As of June 30, 1944 (Thousands of Gross Long Tons) For For Persian Gulf For For Soviet Fat East En Route Cargo on Soviet Hand or Losses North Total Arrived as of Full Diverted Lost Russia by Partial From Arctic Full Partial June 30 Cargoes Abadan in U.K. Month Cargoes Cargoes Cargoes 1941 Oct 48 - - - - 17 - 65 62 - - 3 - Nov 41 3 - - - 14 - 58 55 - - 3 - Dec 50 10 - - - 11 - 71 63 - - 8 3 1942 Jan 63 - - - - 26 - 89 72 - 1 16 9 Feb 66 4 1 - - 20 - 91 76 - - 15 5 Mar 171 17 1 - - 25 - 214 163 - 5 46 42 Apr 376 21 - - - 38 - 435 267 - 40 128 - May 92 79 8 - - 33 - 212 141 - 19 52 38 Jun 55 84 7 - 18 31 - 195 139 - - 56 55 Jul 13 39 25 - 46 59 1 183 174 - - 9 114 Aug 69 40 25 - 2 83 - 219 197 - - 22 7 Sep 28 63 9 - - 79 - 179 179 - - - 65 Oct - 109 12 - - 108 - 229 229 - - - 2 Nov - 66 5 - - 106 1 178 165 - - 13 17 Dec 29 83 9 - - 123 - 244 237 - 7 - 2 1943 Jan 73 83 4 - - 98 - 258 210 - 48 - 2 Feb 173 40 - - - 129 - 342 178 - 150 14 8 Mar 9 131 - - - 123 - 263 246 - 9 8 16 Apr - 138 5 - 194 - . - 337 330 - - 7 7 May - 112 9 - 13 216 - 350 343 - - 7 . Jun - 25 4 - 16 229 1 275 275 - - - 15 Jul - 116 10 9 58 152 - 345 345 - - - - Aug - 173 4 7 32 261 - 477 463 - - 14 14 Sep - 194 4 8 - 313 - 519 519 - - - - Oct 66 187 6 11 1 181 - 451 442 - - 9 - Nov 145 194 1 10 - 229 - 579 571 - - 8 9 Dec 214 167 - 10 - 262 - 653 639 - - 14 - 1944 Jan 222 202 - 11 - 176 - 611 608 - - 3 22 Feb 127 114 - 13 - 100 - 354 346 - - 8 3 Mar 110 152 - 15 - 91 - 368 347 7 - 14 8 Apr - 275 - 19 - 134 - 428 424 - - 4 18 May - 287 - 20 - 264 - 571 347 224 - - - Jun - 187 - 21 28 307 - 543 77 466 - - - Total Oct. 1941 to June 30, 1944 2,240 3,395 149 154* 213 4,232 3 10,386 8,929 697 279 481 481 # Petroleum products by rail ex Abadan for U.S. account, replaced to U.K. from U.S.. DISTRIBUTION OF TONNAGE SHIPPED TO JUNE 30, 1944 BY REGISTRY OF SHIPS Other 369,000 tons 3.6% Soviet Ships 2,248,000 tons 21.7% U.S. Ships 5,480,000 tons U.S. Ships 52,7% Transferred to Soviet Registry 2,289,000 tons 22.0% DATA ARE GROSS LONG TONS I-IIII SECRET AIRCRAFT DELIVERIES TO U.S.S.R. October 1,1941 to June 30,1944 Protocol requirements are filled upon delivery of aircraft from factories. Departure points from North America are: U.S. ports for water shipments, Fairbanks for flight-deliveries via the Alaskan Siberian Ferry Route, and Mismi, Florida or adjacent fields for flight-deliveries via the South Atlantic. Planes shipped by water to North Russia are considered delivered upon arrival at Murwansk or Archangel. Planee shipped by water to the Persian Gulf are assentled at Abadan and with planes arriving there over the South Atlantic Ferry Route are delivered at Abadan to U.S.S.R. pilots. Alaskan-Siberian Ferry Route planes are delivered to Soviet pilots at Fairbanks. with the exception of 59 P-40 fighters shipped from 0.5. porte in September, 1941 and arrived in North Russia in November and December 1941, this schedule includes all aircraft departed from the U.S. for direct delivery to the U.S.S.R. Aircraft shipped from the U.S. intended for use in the United Kingdom but retransferred from the United Kingdom to the U.S.S.R. are not included. In North America Lost in Lost En Route June 30, 1944 North America Arrived Delivered Delivered Departed After Diverted N. A. to at to U.S.S.R. at In Canada In Canada North Depart- to Destina- Destins- at Factories In U.S. and In U.S. and America ure Others tion tion Destination Alaska Alaska 6/30/44 BY ROUTES Alaskan-Siberian Ferry Route 4,774 230 132(62)* $ 45 4,307 o o o 4,307 4,307 South-Atlantic Ferry Route to Abadas 1,055 4 o 16 o 1,035 43 1 4 987 943 Water to North Russia 1,483 o o o o 1,483 310 1 3 1,169 1,169 Water to Persian Oulf Assembly at Abadan 4,093 56 o 1 o 4,036 236 o 146 3,654 3,438 Total 11,405 290 132(62)* 77 45 10,861 589 2 153 10,117 9,857 BY TIPE OF PLANE Pursuit Planes P-40 Alaib 50 o 0 o 2 48 o o 0 48 48 P-40 North Russia, Water 1,149 o 0 o o 1,149 248 1 o 900 P-40 Persian Gulf, Water 872 15 o o o 857 54 o 66 737 926b/ 900 P-LO Persian Culf, Water-U.X. Account 300 o o o o 300 o o o 300 P-39 Alaib 895 43 32(14)* 8 13 799 o o 0 799 799 P-39 Alaib-U.K. Account 1,637 52 41(26)* 28 17 1,499 o 0 0 1,499 1,499 P-39 Alsib-Reimbursement Account 30 o 0 0 3 27 o o o 27 27 P-39 North Russia, Water 57 o o 0 o 57 7 o o 50 50 P-39 North Russia, Water-U.K. Account 35 o o 0 o 35 5 o o 30 30 F-39 North Russia, Water-Reim. Acct. 28 0 0 o o 28 0 o o 28 28 P-39 Persian Oulf, Water 1,051 0 0 o o 1,051 38 o 10 1,003 (1)**) P-39 Persian Gulf, Water-U.X. Acct. 893 o 0 o o 893 53 o 10 830 (1)** 188Lb/ P-39 Persian Gulf, Water, Reim. Acct. 121 o o o 0 121 o o o 121 (1)**) P-47 Alaib 3 o o o 0 3 o o o 3 3 P-47 North Russia, Water 3 o o o o 3 0 o o 3 3 P-47 Persian Oulf, Water 197 41 o 1 o 155 12 0 60 83 58 P-63 North Russia, Water 3 o o o o 3 0 0 0 3 3 P-63 Alaib - U.K. Account 85 58 27(18)* o o o o 0 0 o 0 P-63 Alaib 63 52 11(2)* o o 0 o o o o 0 Total Pursuit Planes 7,472 261 111(60)* 37 35 7,028 417 1 146 6,464 (6)**6,258 Light Bombers A-20 Alaib 1,297 23 18(0)* 22 9 1,225 o o o 1,225 1,225 A-20 South Atlantic 927 4 0 16 o 907 39 1 4 863 819b/ A-20 North Russis, Water 165 o o o o 165 39 o o 126 126 A-20 Persian Gulf, Water 637 o o o o 637 79 0 o 558 (7)** 550g/ Total Light Bombers 3,026 27 18(0)* 38 9 2,934 157 1 4 2,772 (7)**2,720 Medium Bombers s/ B-25 Alaib 387 1' 2(2)4 1116 '1 383 o 383 283 B-25 South Atlantic 128 o o o o 128 4 o o 124 124 B-25 North Russia, Water 5 0 o o o 5 0 o o 5 5 Total Medium Bombers 520 1 2(1)* o 1 516 4 o o 512 512 Harvy Bombers B-24 Alaib 1a/ 0 o 0 o 1 o o o 1 1 Cargo Planes C-47 Alaib 326 1 1(1)* 2 o 322 o o o 322 322 Observation Planes 0-52 North Russia, Water 30 o o o o 30 11 o o 19 19 Advanced Trainers AT-6-C North Runsia, Water 8 o o 0 o 8 o o 3 5 5 AT-6-C Persian Gulf, Water 22 0 o o 0 22 0 o 9 22 (1)** 20 Total Advanced Trainers 30 o 0 o o 30 o o , 27 (1)** 25 Patrol Bosters PEN Patrol Bonbers 48 19 o o o 29 - - - - - At Fairbagks - Water shipments received at Abadan washed out before delivery to U.S.S.R. pilots. One heavy bomber carrying a U.S. Mission became stranded in Siberia and ups transferred to the Soviet Government. As of June 30, 1944, 1,369 A-20's, 926 P-40's, 1,884 P-39's were reported departing Abadan with U.S.S.R. pilots. One B-36. previously refused by U.B.S.R. at Fairbanks and returned to Great Falls for adjustments now enroute to Fairbanks. One B-25 previously refused by U.S.S.R. at Fairbanks and returned to Great Falls for adjustments now returned to Fairbanks. Not included in totals above. No information available after departure from North America. - EXPORTS AND AVAILIBILITY SECRET As of June 30, 1944 Sheet 1 fhird Protocol Performance Exported Cusulative Performance - let, 2nd, and 3ed Protocola July 1, 1943 - October 1, 1941 to June 30, 1944 June 30, 1944 Item Third Made During 7/2/43- Mode Diverted In v. I. Balance Protocol Available June, 6/30/44 Available Exported Arrived lost After desiting Inroute Offering to Date 1944 Export Forwarding 6/30/44 . b 4 4 . I AIRCRAFT AND EQUIPMENT f Aircraft (For U.S. Protocol Account) I 1A Puredit Planes 2,400 2,396 157 2,337 4,343 4,125 18 Light Bonters 1,200 1,205 61. 1,212 3,026 2,934 10 Medium losters 300 300 34 310 520 516 1D liesvy Bonters o o o o 1 1 18 Transport Planes 240 246 12 239 326 322 IF Flying Boats, PIN o 48 21 29 48 29 10 Observation Planes 0 0 o o 30 30 18 Advanced Trainers o 0 0 o 30 30 (For U.K. Protocol Account) See Detailed Schedule (Under Reciprocal Agreement) I LA Pursuit Planes 1,800 1,800 168 1,732 2,950 2,727 (For Relabursement Account) I LA Pursuit Planes o o o 0 179 1% I 6A Link Trainers o 10 o 5 10 5 5 o 0 o o 68 Aircraft Landing Mate (1000 sq. feet) o 3,293 o 3,293 3,293 3,293 3,293 o 0 o o II MILITARY SUPPLIES f Combet Vehicles II-1A1 Light Tanks o o o o 1,680 1,680 1,237 443 o o o II-1A2 Medium Tanks 2,000 1,814 52 1,758 3,350 3,306 2,816 405 o 0 85 II-101 Self-Propelled Duns, AT % - o 5 o 5 5 5 5 0 0 o o II-1B2 Self-Propelled Ouns, AT 57 - 0 650 o 650 650 650 650 o o o 0 II-183 Self-Propelled Guns, AT 3* 0 50 o 50 52 52 52 o 0 0 0 II-184 Salf-Propelled Ques, AA .37 - 0 100 0 100 100 100 % o 0 o 26 II-185 Salf-Propelled Owne, AA .50 Cal. 0 1,000 3 1,000 1,000 1,000 997 o o o 3 II-10 Half Tracks 600 462 1 411 797 740 664 54 o o 22 II-1D Armored Seout Care 4,500 2,641 171 1,921 3,568 2,835 2,436 218 o o 181 Universal Carriers o o 0 0 0 o o 0 0 o o Total 7,100 6,722 227 5,095 11,202 10,368 8,931 1,120 o 0 317 Ordnance Service Vehicles II-2A Field Repair Tracks o 683 "48 800 1,183 1,104 1,067 3 o o 34 II-2B Tank Recovery Units o 136 o 130 136 130 130 0 o o o II-20 Tank Transporters (20& 40 ton) o 276 8 208 376 284 256 20 o o 8 Total o 1,095 56 1,138 1,695 1,518 1,453 23 o o 42 Trucks II-3A1 Jeeps (1) ton 4x4) 24,000 19,262 215 18,214 44,394 40,662 34,676 3,657 1,378 o 951 II-3A2 Jesps, Amphibiam 3,010 625 2,798 3,012 2,800 2,263 o o o 437 II-381 Trucks, 3/4 ton 13,326 1,817 10,992 18,130 15,640 12,0)) 78 598 o 2,931 II-3B2 Trucks 1) ton 53,607 4,112 56,388 113,050 110,619 92,773 5,316 1,826 1,446 8,258 II-383 Trucks, 2) ton 132,000 55,913 4,290 53,304 115,289 108,768 93,612 4,1% 704 3,418 6,866 II-30 Trucks, 5 ton and over o o 0 54 54 54 o o o o II-30 Trucks, Special Purpose 630 58 517 651 538 468 o o o a II.N. Truck Tractor Trailers 906 214 852 906 870 498 6 o 2 364 11-38 (Engines for Trucks) o (2,977) (238) (3,065) (3,500) (3,432) (3,332) (0) (0) (0) (100) Total Trucks 156,000 146,654 11,331 143,065 295,486 279,951 236,477 14,233 4,506 4,866 19,869 Other Vehicles & Track-Laying Tractors II-4A1 Motorcycles 12,000 14,232 485 12,716 26,332 24,116 20,018 1,770 1,100 o 1,228 II-481 Tractors, Prime Nover Type 2,400 2,559 86 2,610 5,607 4,503 3,971 242 o 0 290 Artillery and Ammunition II-5A1 AA Guns, 90 - o 120 o 136 224 224 196 8 0 20 o II-5A2 AA Guns, 40 - o 5,401 o 5,320 5,581 5,395 4,815 196 0 0 384 II-5A3 AA Guns, 37 - o o o o 424 424 340 16 0 66 o II-544 AA Machine Owne, 50 Cal. o 1,200 o 1,125 2,000 1,925 1,525 o o 400 o II-547 MA Ouns, 4.70 o 4 4 4 4 4 o 0 0 0 4 II-581 AT Guns, 37 - o o o o 63 63 35 28 o o o II-5B4 AT Guns, 57 - o 0 0 o o o 0 o o o o II-501 Submachine Ouns, 45 Cal. o 5,055 0 2,850 140,122 135,633 111,293 23,190 o o 1,150 II-501 Pistols and Revolvers 0 7,500 500 13,000 13,000 13,000 11,000 1,500 o o 500 11-57 Mortars 0 o 0 o 30 30 30 o o o o II-50 Smoke Pota 0 941,355 49,218 866,539 946,355 871,539 777,521 o o o 94,018 II-W Rocket Launchers 0 0 0 o 3,000 3,000 3,000 o o o 0 Notes: a U.S.S.N. selections from U.S. offerings were in excess of the aggregate of shipping consitsents and necessary stocks. Although shipping exceeded commitments, production control provisions of the Protocol were exercised and reduced quantities made available below offerings is some Instances, b From production or assignments la addition to quantities made available but not exported at the and of the Second Protosol period and after deductions of quantities repossessed or diverted before export. e From production or assignments (Lood-Lesse and cash purchases) after deductions of quantities repossessed OF diverted before export. 4 Includes shipments for clearance through the Persian Corridor reported arrived in the Persiar. Julf. . Data on discharge operations in U.K. incomplete. f Aressent, spare parte and other equipment supplied in accordance with U.S. standards. I Regraded Unclassified SECRET Sheet 2 Third Protocol Performance Exported Cumulative Performance 1st, 2nd, and 3rd Protocols July 1, 1943- October 1, 1961 to June 30, 1964 Item June 30, 1944 Third Made During Diverted In U. K. Balance Protocol Available June, 7/1/43- Made Exported Arrived Lest After Amailing Peroute Offering To Date 1944 6/30/44 dvailable Export Forwarding 6/30/44 . . 4 II MILITARY SUPPLIES (cont.) Explosives (tone) II-6A1 Smokeless Powler 68,721 1,420 81,064 135,225 119,977 109,137 4,910 o o 5,930 II-642 Stick Powder 72,700 2,083 377 1,609 2,083 1,609 1,078 0 0 o 531 II-6A3 Other Powder -- o - ⑉ " -- -- -- " : II-6AL Cardite Powder 100 0 100 919 636 036 o o o o II-68 T.N.T. 35,840 -- 4,123 64,468 -- 98,336 85,021 3,849 250 o 9,216 II-6C Amonite, (Dynamite) o 12,346 o 12,306 22,173 18,617 18,617 o 0 o o II-60 Pierio Agid 007 0 1,028 1,486 1,385 1,147 92 0 o 146 11-68 Collexylin, (Nitrosellulose in Alcohol) (81000) 0 357 694 8,136 5,460 3,505 1,339 86 $ 461 II-6P Detumators, Blasting Supplies, etc.) ($1000) - o o -- o o o o o o 11-60 (Other Explosives and Components) -- o o -- o o o o o o Total Explosives 108,540 103,947 6,277 162,069 -- 246,020 219,141 10,190 336 69 16,284 Wireless Communication Equipment 11-7A1 Radio Stations over 1 n, Marinal -- o -- " -- -- -- -- -- -- II-7A2 Radio Stations over 1 B, Other 63. 22 1 11 - 11 11 0 o 0 o II-781 Radio Stations 1 XX and Onder, Unrine -- o -- - -- - -- .. -- - 11-782 Radio Stations,1 EN and Under, Ciner22,000 15,728 2,478 15,338 - 27,034 24,578 821 32 0 1,603 II-701 Ratto Receivers, Marine - o -- - - ** - - -- -- 11-702 Radio Receivers, Other 2,230 3,291 386 3,169 " 3,626 2,974 19 o o 633 II-701 Radio Locators, Marine - o -- - - -- -- .. -- - II-702 Radio Locators, Ground o 16 9 31 38 36 25 o o 0 11 11-703 Radio Locators, Aircraft o -- o -- -- -- ** -- : -- -- II-78 Radio Direction Finders 150 113 32 64 -- & 32 o o 0 32 II-77 Madio Altimaters o 10 o o -- o o o o o o II-70 Badio Beacons 0 288 29 276 - 2% 202 25 o o 49 11-78 Radio Tubes (1000 units) 2,400 2,434 -- - be -- -- : : : - 11-71 Radio Components, Parts & Accura. ($1000) = 3,000 1,008 1% 1,285 -- 2,576 2,452 5 o o 118 II-W2 Radio Mean, & Test. Bquip. ($1000) 1,015 225 816 -- 1,010 836 2 o o 172 Construction Machinery ($1000) II-BA Road and Airport Construction Equip. o 526 33 526 606 606 429 108 o o $ 11-88 Tractor Mounted Construction Equip. o 531 6 417 557 417 411 o o o 6 11-80 Mixero and PAYMENT o 362 ) 163 670 323 323 o o o o II-6D R.B. Construction Equipment 0 26 55 491 635 609 502 o 0 o 107 Total 0 1,445 97 1,597 2,468 1,955 1,665 108 o o 182 R.R. Transportation Equipment 11-961 Steam Locomotives 500 601 60 339 601 339 273 6 o o $ II-981 Flat Cars 10,000 2,756 216 1,640 2,756 1,640 1,352 54 o o 234 II-982 Duep Cars o 370 20 50 370 50 20 o o o 30 II-983 Tank Care o 30 o 97 100 97 97 o 0 o o Total 10,500 3,757 296 2,126 3,827 2,126 1,742 60 0 o 324 Medical Supplies ($1000) II-10 Medical Supplies 12,000 13,962 -- -- - : -- - " - - [Protocol Items Only) Other Military Items II-11A Cablemay Bridges o 15 0 15 15 15 15 o o o o II-110 Portable Pipeline o 2 0 2 2 2 2 o o o o II-11D Flashlights"/ Dry Cells 0 45,000 15,000 75,000 100,000 100,000 100,000 o o o o III NAVAL AND MARINE SUTIPMENT Ehtps, Except Conhet III-LA Dry Cargo Vessels, Transferred - 8 2 8 60 € 60g 18 Tankers, Transferred - 5 (-) 1 5 12h 12h 10 Icetreskers, Transferred o 1 o 1 1 1 IF Steam Schooner o 1 1 1 1 1 10 Preumatic Pontoons o o o 0 3,000 3,000 3,000 o 0 0 o Combat Shipe III-2A Submarine Chasers, 110' 0 23 11 23 23 23 29 Submarine Chasses, 65° 0 63 o 47 63 47 45 2 o o 0 20 Torpedo Boste o % o 49 88 41 45 3 7 0 6 2D Minaswepers 10 10 o 10 10 10 20 Landing Craft 0 40 o 30 40 30 30 o o o o Marine Propulation Machinery, etc. III-3A Marine Diesel Engines 773 1,320 200 972 1,670 1,321 1,062 9 o o 230 38 Marine Gasoline Engines 156 1,787 300 2,241 3,640 3,479 3,048 46 o $ 320 30 Outboard Notors o 1,100 o 750 1,300 900 900 o o o o 38. Shafting and Ship Propellars ($1000) o 69 53 69 $ 69 16 0 o o 53 37 Steering Cears ($1000) o o o 43 43 43 43 o o o o 30 Storage Batteries for Submarines 15 6 o 7 22 22 20 0 0 2 o n Parts and Equip. for Marine Propulsion Mach. ($3000) o 430 134 430 573 573 385 13 0 0 175 Notes: All tons are short tone (2000 lbs. each) net weight. -- Data not available. . U.S.S.R. selections from U.S. offerings were La excess of the appropate of shipping commitments and natessary stocks. Although shipping exceedat commitments, production control provisions of the Protocol were exercised and reduced quantities made available below offerings in some Instance b From production or assignments in addition to quantities made available but not exported at the end of the fecond Protocol period and after deductions of quantities repossessed or diverted before export. . From production or assignments (Lend-Lease and cash purchases) after deductions of quantities represented or diverted before export. di Includes shipments for clearance through the Persian Corridor reported arrived in the Persian Oulf. . Data on discharge operations in U.K. incomplete. / Armasant, apart parts and other equipment supplied in accordance with U.S. standards. I 66 Dry cargo vessels transferred of which & were returned to the U.S. during Third Protocol period. h 16 Tankers transferred of which 4 were returned to the U.S. during Third Protocol period. MII Regraded Unclassified SECRET Sheet 3 Third Protocol Performance Exported Comulative Performance let, 2nd, and 3pd Protocola July 1, 1943- October 1, 1941 to June 30, 1944 June 30, 1944 Item Third Made During 7/1/43- Diverted Made In c. E. Balance Protocol Available June, Offering To Date 1964 6/30/44 dvailable Exported Arrived Lost After imiting Enroute Export Formanding 6/30/44 b . 4 III NAVAL AND MARINE (cont.) Special Ship Squipment III-LA Salvage Stations and Diving Gear (81000) (40 units) 17 3 729 841 729 719 a o 0 a 4B Jettying Apperatus (71000) (20 esta) 112 o 109 112 109 44 a o 0 as 4D Submarine Reseue Chanbers 1 1 o 1 1. 1 1 o 0 o 0 48 Distilling Apparatus (11000) o 36 o 36 36 36 36 or o 0 0 40 Misc. Special Ship Rquip. ($1000) 0 3 o 3 3 3 3 o o o o 2D Trawling Equip. for Wine- sweepers ($1000) o 122 122 122 122 122 o o o o 122 Naval Artillery and Ammunition III-5A 3*/.50 Cal. D.D. Duns 200 523 15 447 523 523 421 6 o 36 60 58 5*/38 Cal. D.D.Guns o 50 o 144 150 144 132 6 o o & 50 -50 Cal. Machine Guns o 1,348 300 1,100 1,5% 1,108 408 o o o 700 57 Oarlikon Cuns 500 900 o 1,118 1,900 1,898 1,487 111 150 o 150 58 immunition, Naval Furnished with Areament IV FOODSTUFFS, ETC. (tons)f IV-LA Whest 26,665 0 26,465 55,713 55,713 55,113 600 0 o o 18 Whest Flour 294,822 9,883 296,822 532,614 532,614 506,603 8,587 5,062 o 12,362 101 Other Grains 2,208 0 2,208 5,362 5,362 5,362 0 o o o 102 Other Flour 16,181 6,560 16,181 27,522 27,522 21,222 0 0 o 6,300 103 Other Basic Grain will Prods. 8,335 150 8,335 22,954 22,954 22,683 130 o o 141 104 Other Finished Caresla and Prode. 32,463 2,084 32,463 86,268 86,268 82,615 1,065 528 o 2,060 ID Dried Pass and Beans 107,048 1,998 107,048 219,175 219,175 186,155 7,905 23,138 o 1,977 181 Seeds, Land-Lesse 8,148 o 8,148 16,644 16,644 16,626 18 o o o 182 Reeds, R.W.R. E (346) (22) (346) (2,056) (2,056) (2,035) (0) (0) (0) (21) Total h 500,000 495,670 20,675 495,670 966,252 966,252 896,379 18,305 28,726 o 22,840 IV-2A Sugar from U.S. 112,000 245,972 13,691 245,972 416,921 416,921 361,797 16,481 12,364 o 26,279 28 Sugar from Other Sources h 224,800 49,856 o 49,856 76,373 76,373 66,323 o o o 10,050 IV-JA Debydrated Mest 6,994 378 6,994 7,671 7,671 7,052 o o o 619 38 Turhenka 145,554 11,084 145,554 150,649 150,649 129,597 1,446 o o 19,606 30 Other Canned Nests 120,040 5,440 120,040 350,675 350,675 305,024 17,426 14,842 581 12,802 Total 1 207,345 272,588 16,902 272,588 508,995 508,995 441,673 18,872 14,842 581 33,027 TV-LA Lard 102,755 1,539 102,755 172,535 172,535 146,164 7,098 16,846 o 2,427 4B1 Pat Cuta 119,373 2,500 119,373 210,089 210,089 202,025 3,198 4,142 o 726 4B2 Smoked Mesta 4,328 al 4,328 16,389 16,389 15,569 499 302 o 19 483 Saurage & Mest Preparations 99 5 99 263 263 236 0 o o 27 401 Butter (39,200) 39,558 44 39,558 51,356 51,356 49,567 1,010 735 o 44 4/02 Butter 012 961 961 961 961 961 o a o o 961 403 Carters' Spread 9,014 1,986 9,014 9,014 9,014 6,233 37 o o 2,724 4D Other intel Pata and Oils 8,122 166 8,122 23,500 23,500 22,173 637 539 o 151 Total 347,200 284,210 7,278 284,210 484,107 484,107 441,967 12,479 22,564 o 7,097 IV-5A1 Vegetable 011 in Bulk 166,703 16,440 166,703 277,357 277,357 260,245 672 o 0 16,440 5A2 Vegetable 011 in Druma 3,980 195 3,980 13,010 13,010 12,801 37 o 0 172 53 Shortening 13,317 of 13,317 25,537 25,537 23,035 286 2,140 0 a 5C Oleomargarine 36,050 33 36,050 40,813 40,813 39,414 537 o 0 862 Total I 222,760 220,050 16,743 220,050 356,717 356,717 335,495 1,532 2,140 0 17,550 IV-6A Canned Milk 7,105 430 7,105 12,404 12,404 11,720 282 o o 402 68 Dried Milk 33,025 597 33,025 50,004 50,004 44,118 896 4,394 0 60 Dried Eggs 596 38,836 1,253 38,836 69,839 69,839 57,300 4,675 5,296 0 60 Cheese 2,568 15,935 582 15,935 19,656 19,656 18,764 295 o o 597 681 Soys Flour 36,616 510 36,616 39,010 39,010 36,947 1,442 o o 621 682 Soya Grite 17,948 o 17,948 18,108 18,108 18,108 o o o o (if Fruit & Veg. Pastes & Puress 3,233 154 3,233 3,659 3,659 3,518 o o o 141 60 Concentrated Juices 1,347 4 1,347 1,723 1,723 1,722 0 o 661 Dried Fruits o 1 366 66 366 1,049 1,049 983 o o o 66 61 Dried & Dety. Vegetables 3,7% 422 3,776 4,333 4,333 3,917 0 o o W Dried Soupe 416 6,594 168 6,594 6,865 6,865 6,691 105 o o 4d. Concentrated Cersals $ 6,551 45 6,551 7,691 7,691 7,596 95 o o o Total 177,000 171,332 4,231 171,332 234,341 234,361 211,384 7,790 9,690 o 5,477 IV-7A Soep 1,454 184 1,454 6,258 6,258 6,019 111 o o 128 TO Soap Stock o o o 322 322 o 0 322 0 o Total 11,200 1,454 184 1,454 6,590 6,580 6,019 111 322 o 128 Notes: All tona are short tons (2000 lbs. each) not weight. U.S.B.R. selections from U.S. offerings were in of the aggregate of shipping commitments and necessary stocks. Although shipping exceeded b commitments, production control provisions of the Protocol were exercised and reduced quantities made available below offerings is some instances. From production or assignments in addition to quantities made available but not exported at the and of the Becond Protocol period and after deductions of quantities repossessed or diverted before export. 4 From production or assignments (Land-Lease and cash purchases) after deductions of quantities reponseneed or diverted before export. 4 Includes shipments for clearance through the Persian Corridor reported arrived in the Persian Galf. . Data on discharge operations in U.E. incomplete. f Foodstuffe made available as exported. € feeda forwarded by Russian Mar Relief, Inc. not considered in fulfillment of Protonal commitments callted from totals. If By agreement comitant for "Rest, Flour, Careals, etc." Increased by 100,000 tone offsetting reduction of *Dugar, from Other Sources". $ by agreement canned most commitment reduced by 2.17 tone for each too of deligdrated mest shipped. J Commitment for vegetable oil reduced by 2240 short tons by transfer to the U.K. under Article y of the Third Protocol. U.K. to supply 2240 short tona of eccomut oil. - SECRET Sheet 4 Third Protocol Performance Exported Cumulative Performance - 1st, 2nd, and 3rd Protocols July 1, 1943- October 1, 1961 to June 30, 1944 June 30, 1944 Item Third Made During 7/2/43 Diverted In c. L. Balance Made Protocol available June, Available Exported Arrived Lost To Date 6/30/44 After Amiting Enroute offering 1944 e Export Forwarding 6/30/44 a b di . . IV FOODSTUFFS, ETC. (tons) (Cont.) IV-SA Canned Pruite 18 0 18 349 349 349 o 0 o o 88 Canned Vegetables 614 32 614 1,419 1,419 1,386 o 0 o 33 60 Fresh Fruit 3 9 3 3 64 55 o o o 9 6D Fresh Vegetables 1,171 140 1,171 1,241 1,241 1,100 o o o 141 BE Vitamina 278 44 278 546 546 460 5 36 o 45 or Teast 529 39 529 838 638 667 o 112 o 39 80 Tes 254 6 254 6% 876 871 o o o 5 88 Coffee 4,053 1 4,053 6,617 6,817 6,256 o 560 o 1 BI falt 590 269 590 2,126 2,126 1,894 o o o 232 as Spices 1,154 1 1,154 1,225 1,225 1,224 0 o o 1 SE Flavoring Extracts 26 13 28 200 200 185 2 o 0 13 BLL Namel Nute from Turkey 3,638 o 3,638 3,638 3,638 3,638 o o 0 o BL2 Other Bute 1 o 1 58 58 50 o or o o 6M Other Foodstuffs 1,604 7 1,604 2,404 2,404 2,395 1 o o 8 as Feed 5,626 2,344 5,626 7,602 7,602 5,258 0 o 0 2,344 Total 19,618 2,905 19,618 29,403 29,403 25,816 8 708 o 2,071 Total Foodstuffs (short tons) 1,802,305 1,760,750 82,609 1,760,750 3,079,689 3,079,689 2,786,853 75,578 91,358 581 125,319 y MACHINERY AND EQUIPMENT ($1000) f V-1 Engines & Turbines, General Purpose 3,603 79 4,921 8,345 6,992 5,948 883 o o 161 V-2A Compressors, Marine 248 o 79 356 127 127 o o o o V-23 Compressors, Other 5,132 258 5,740 4,316 7,964 6,529 340 o o 1,095 V-34 Pumps, Marine 1,069 81 639 1,131 639 605 o o o 34 V-38 Pumps, Other 5,171 377 4,393 7,059 6,162 4,863 193 o o 1,126 V-4 Crushing & Wixing Machinery & equipment 4,109 459 4,256 6,142 5,203 4,167 = o 0 953 V-5 Conveyors & Conveying Systems 998 184 505 1,315 641 387 0 0 0 254 V-6A Winches, Marine / 283 o 213 316 229 151 - o 0 R V-68 Cranss, Derricks & Holsts, Other 11,550 1,060 8,052 13,808 9,871 8,420 55 o 0 1,3% V-7 Industrial Trucks & Tractors 2,000€ 211 1,991 4,084* 3,984 3,429 3 0 11 480 1-lb Fan and Blquir Equipment, Marine 90 5 489 513 513 LBC 0 o o 29 Y-83 Fan and Blower Equipment, Other 802 32 506 839 509 286 0 0 o 223 V-9 Mech. Power Transmission Bysipment 19 o 36 55 55 55 o o o o V-10 Bearings 10,834 1,181 9,755 15,651 13,484 12,311 233 o o 940 V-11 Valves and Steam Specialties 3,964 10 2,399 5,207 3,601 3,461 58 o o 82 V-12 Missellaneous General Purpose Industrial Machinery 3,062 450 2,404 3,702 2,713 2,381 4. o o 328 V-13A1 Electric Retating Equipment, Marine 1,364 561 1,035 1,370 1,039 313 o o o 726 V-13A2 Electric Rotating Equipment 5,709 807 8,093 11,065 10,971 9,929 349 3 o 690 V-1381 Generator Sate, Military 4,000 13,980€ 904 9,520 23,500* 23,414 21,785 490 o o 1,139 V-1382 Generator Sets, Marine 3,474 1,514 3,474 4,869 4,809 3,413 o o o 1,456 V-1383 Generator Sets, Other / 44,786 3,481 35,778 59,823 40,910 37,498 % o o 3,338 7-14 Primary Electric Power Transmission Equipment 1,665 336 2,074 2,947 2,479 2,362 6 o o 111 V-15 Power Conversion Equipment / 2,390 55 982 2,445 1,038 714 270 o o 54 V-16a Secondary Distribution Equipment, Marine / 67 " 67 67 67 67 o o o o V-168 Secondary Distribution Equipment, Other 344 30 496 1,015 956 945 7 o 0 4 T-17 Motor Starters & Controllers / 110 1 187 663 651 574 " 23 o 21 V-18 Lampa 15 1 71 103 87 87 - o o o V-19 Miscellaneous Electric Equipment / 1,600 91 1,366 2,025* 1,758 1,572 3 o 15 166 Y-20 Food Products Machinery 57 39 257 660 285 243 4 o o 38 V-21 Textile Industries Machinery 190 10 252 995 957 837 109 o o 11 V-22 Pulp & Paper Industry Machinery / o 124 318 365 341 212 5 0 o 124 V-23 Printing Trades Machinery & Equip. 44 o o 44 44 44 0 o o 0 V-24A Tire Plant 3,918 391 3,918 7,345 7,345 6,946 , 0 0 394 V-24B Rubber Working Machinery o 0 o o 0 o 0 o 0 0 V-25 Woodworking Machinery 576 24 293 684 373 356 12 0 0 5 V-26 Motal Melting & Heating Furnaces 8,403 1,269 8,763 15,728 13,824 11,270 625 0 0 1,929 Notes: All tons are short tona (2000 1bs.) net weight. . U.S.S.R. selections from U.S. offerings were in excess of the aggregate of shipping commitments and necessary stocks. Although shipping exceeded consitments, production control provisions of the Protocol were exercised and reduced quantities nade available below offerings in some Instances b Prom production or assignments is addition to (unntities made svailable but not exported at the and of the Becond Protocol period and after deductions of quantities repossessed or diverted before export. e From production OF assignments (Lend-Lesse and cash purchases) after deductions of quantities repossessed or diverted before export. e Includes shipments for clearance through the Persian Corridor reported arrived in the Persian Culf. . Data on discharge operations In U.S. incomplete. r Reclassification of Protocol Items includes detailed measurement of fulfillment of individual commitments. - SECRET Sheet 5 Third Protocol Performance Exported Oumulative Performance - let, 2nd, and 3rd Protocols July 1, 1943- October 1, 1941 to June 30, 1964 June 30, 1944 Third Made During In U.K. Balance Protocol Available 7/1/43- Mode Arrived Diverted Offering to Date June Available Lost Awaiting Inroute b 1944 6/30/44 Exported e After Forwarding 6/30/44 = Export V MACKINGT AND EQUIPMENT($1.000) (cont.) V-27 Blast & Reverberatory Purnaces 1,652 29 657 1,667 667 659 o o o 6 V-28 Foundry Equipment 378 152 348 976 657 518 15 o o 124 V-29 Spec. Ind. Purnaces, Kilns & Orega , 0 5 % 5 3 o o 0 2 V-30A Petroleum Refinery Plants 38,248 1,236 39,803 49,232 43,235 40,207 263 o 0 2,765 T-300 Petroleum Refinery Machinery 186 0 106 197 110 108 0 o 0 2 V-31 Spec. Machinery for Glass Industry 212 o 198 249 198 174 o o e 24 V-32 Spec. Machinery for Chem. Wrg.Ind. 587 501 641 755 641 147 o o o 494 V-33 Gas Generating & Prod. 7,019 731 3,230 8,446 3,696 3,215 o o o 481 V-34A Miss. Spec. Industry Machines 4,207 896 2,301 5,085 3,120 1,989 5 0 o 1,126 V-34B Cartridge Manufacturing Lines 12,946 2,736 14,265 29,418 26,681 23,845 110 0 o 2,726 V-35 Machine Tools 113,800 15,664 162,421 275,000* 246,022 209,669 8,094 o 8 28,167 V-36 Rolling Mills & Anxiliary Equip. 7,376 259 1,330 12,691 5,469 5,465 o 1 o 3 V-37 Drawing Machines 1,117 - 202 1,117 202 202 o o o o Y-38 Other Primary Metal Forming Machinery & Squipment 243 30 304 304 304 304 o o 0 o V-39 Secondary Metal Forming Machin- ary & Equipment 25,100 6,436 25,809 56,000 38,685 30,558 966 27 o 7,134 V-40 Welding Machinery, her 3,598 140 3,991 4,684 4,664 3,861 59 o o 744 V-61 Testing à Measuring 1,245 228 095 1,561 1,211 905 25 o o 201 V-62 Misc. Notal Working Equipment 109 - 4 109 109 101 8 0 o o V-43 Portable Metal Working Machines and Toole 1,581 38 1,516 2,447 2,343 2,308 4 o o 31 V-LLA Comented Carbide Outting Tools 2,010 267 1,780 3,466 2,856 2,607 11 o o 238 V-44B Metal Outting Tools 10,824 1,628 10,349 26,473 24,742 23,458 55 o o 1,229 T-45 Outting and Forming Tools 12 o o 12 0 o o o o o V-46 Attach. & Access. for Mach,Tools 1,692 285 1,272 2,313 1,845 1,561 47 o o 237 V-47 Tool Room Spec. of Other Attache. 23 o o 23 o o o o 0 0 1-68 Agri. Mach. & Implements 406 253 406 566 409 168 o o o 243 V-49 Mining à Quarrying Machinery 356 128 420 733 496 368 o o o 128 V-50 Earth & Rook Boring & Drilling Machinery and Accessories 3,375 43 3,988 6,371 5,155 4,115 48 0 o 992 V-51 Well & Blast Hole Drilling Mach. 1,387 202 3,615 6,044 5,271 4,978 o 0 o 293 T-52 Excervating & Dredging Machinery 7,602 1,365 8,998 19,560 17,311 13,218 362 1,005 o 2,726 V-53 Miss. Construction Equipment 705 o 682 1,011 77) 773 o o o o V-54 Office Machines 50 o - 50 48 L8 o o o o V-55 Misc. Machinery 605 225 557 1,134 742 515 2 o o 225 V-588 Teletype Apparatus 663 148 934 1,239 956 753 6 o 0 197 V-58C1 Field Telephones 4,620 643 6,187 15,540 15,073 12,291 1,754 26 o 1,002 V-58C1 Field Telephones (Doita) 100,000 (106,508) (15,914) (137,246) (337,832) (325,537) (259,360) (37,328) o o (28,849) V-5802 Other fal. & Tel. Equipment 9,130 1,737 7,759 9,590 8,141 5,417 a o o 2,676 V-58D Sound Equipment 214 2 214 486 486 476 4 0 o 6 V-588 Automatic Mãook & Signal System o 1,999 2,080 6,030 2,080 765 o 0 o 1,315 V-59A Ind. Type Locos, Care & Parts 325 o 618 1,146 1,074 1,047 25 o o 2 V-590 Mine Type Locos., Rail Care & Parts 99 o 74 11,8 74 74 o o o o Y-60 Passenger Vehicles and Parts 133 - 19 195 173 169 3 o o 1 V-61 Airoonditioning & Refrig. Equip. 42 o 42 42 42 42 o 0 o 0 V-62A Lighting Fixtures, Marine 409 54 409 409 409 358 0 o o 51 V-62B Lighting Fixtures, Other 61 3 70 256 253 219 33 o o 1 Y-63 Photographic Equipment 463 21 593 1,806 1,546 1,058 75 o 392 21 V-64A Record.,& Control Inst. 2,100 192 1,696 3,768 2,983 2,700 52 o o 231 V-64B Navigation Instruments 21 o 21 48 48 a 0 o 0 o V-65 Professional & Scientific Instru. 566 228 560 928 677 617 38 o 0 222 V-66 Miss. Equipment 185 1 138 431 381 346 34 0 o 1 1-67 land Tools, Non-Powered 851 12 745 2,179 2,063 2,035 17 o o 11 1-68 Mechanic's Maneuring Tools 1,607 263 1,625 1,974 1,905 1,700 1 o o 204 V-69A Power Boilers, Marine 11 6 11 18 18 7 0 o o 11 V-69B Power Bollers, Industrial 8,145 2,342 5,235 9,290 5,245 2,903 o o o 2,342 Total Machinery & Equipment 460,000 £ 420,005 55,201 442,445 786,033 655,589 561,903 16,069 1,085 510 76,022 Notes: All tons are short tons (2000 1bs.) net weight. . U.S.S.R. selections from U.S. offerings were in excess of the aggregate of shipping commitments and necessary stocks. Although shipping exceeded commitments, production control provisions of the Protocol ware exercised and reduced quantities nade available below offerings in some Instances. b Prom production or assignments in addition to quantities made available but not exported at the end of the Second Protocol period and after deductions of quantities repossessed or diverted before export. e From production or assignments (Lend-Lease and cash purchases) after defortions of quantities repossessed or diverted before export. 4 Includes shipments for clearance through the Persian Corridor reported arrived in the Persian Oulf. . Date on discharge operations in U.K. incomplete. f Includes estimates of costa of Marine and Neval Equipment. I 3ECRET Sheet 6 Third Protocal Performance Exported Ommulative Performance - let, 2nd, and 3rd Protocola July 1, 1943- October 1, 1941 to June 30, 1944 June 30, 1944 Item Third Made During 7/1/43- Maide Diverted In U. E. Balance Protocol Available June, 6/30/44 Available Exported Arrived Lost After Amiting Enroute Offering to Date 1944 . Export Forwarding 6/30/44 a b 4 . . VI MATERIALS AND PRODUCTS Steel (tons) VI-1-10 Rimotal 11,671 2,279 24,027 30,961 29,568 21,900 968 0 o 6,700 VI-1-14 Arsor Plate o o 0 8,951 8,951 5,787 2,897 267 o o VI-1-16 Polished Drill Rode 235 33 268 492 457 411 2 o o 44 VI-1-17 Righ Speed Tool Steel 4,7% 54 4,591 9,748 9,161 8,490 579 22 1 69 VI-1-18 Tool Steel 14,285 212 14,1% 29,174 27,315 24,893 1,219 48 107 1,048 VI-1-19 Cold Finished Bare 25,805f 1,633 48,559 131,600f 119,458 105,682 6,724 671 509 5,872 VI-1-20 H.R. Aircraft Steel 58,296f 7,546 103,952 171,632f 165,168 145,376 2,830 0 292 16,620 VI-1-21 Cr. 81. Mn. Billete 495 2,253 4,499 96,282f 83,785 68,190 9,705 509 1,918 3,463 VI-1-22 Cold Rolled Sheeta 1,1870 1,819 2,507 86,929f 83,251 49,360 29,653 1,709 396 2,133 VI-1-22A Cold Rolled Strip (-)26,8055 149 8,477 75,909£ 72,939 59,184 11,339 798 311 1,307 VI-1-23 Stainless Steel 3,890 3 3,625 9,404 7,410 7,185 98 0 o 127 VI-1-24 Timplate 46,628 9,321 35,224 125,590 110,938 81,873 11,274 2,871 0 14,920 VI-1-25 Steel Wire (-)23,338f 3,749 31,278 89,596f 87,051 74,904 5,082 673 38 6,354 VI-1-26 Wire Rope 4,337f 1,746 12,087 29,908f 26,482 24,886 789 o 29 778 VI-1-27 Steel Alloy Tuber 29,821 BLB 26,862 51,474 34,753 31,769 336 53 o 2,595 VI-1-28 Stainless Steel Wire 449 3 341 2,867 2,644 2,493 94 13 o 44 VI-1-31 a arted Wire & Staples (-)6,582f 123 2,506 52,498f 48,331 37,230 10,538 203 99 261 VI-1-32 Pipe and Tubling 41,632f 4,869 55,008 165,977f 115,708 88,937 16,189 1,654 o 8,920 VI-1-33 H.R. Sheets & Plates 61,525f 21,329 88,122 239,299f 199,762 155,268 19,180 2,357 1,041 0,% VI-1-34 Wire Saile and Tacks 3,329 1,234 3,862 9,711 7,097 6,384 43 o o 670 VI-1-101 R.R. Rails and Accessories 206,691 17,017 244,860 370,911 355,937 299,209 23,072 1,421 o 32,235 VI-1-102 Mounted Sets, Wheels & Axles o 867 22,027 24,330 24,149 22,241 90 o o 1,818 VI-1-103 Car Axles o o 15,979 36,506 35,554 30,248 1,367 o 164 3,775 VI-1-104 Locomotive & Car Wheel Tires 9,184 1,055 16,184 22,162 21,767 17,664 53 o o 4,030 VI-1-105 Rolled Steel Car Wheels 10,692 3,035 15,034 19,264 16,868 11,991 o o o 4,877 VI-1-107 Locomotive Axles o o 141 253 252 252 o o o o VI-1-108 Electric Locomotive Axles o o o 300 222 222 0 o o 0 Total Steel 500,000 477,759 81,177 784,254 1,891,728 1,694,978 1,382,049 154,172 13,269 4,905 140,584 Rotes f The following quantities released from U.S.S.R. export stocks for redistribution have been deducted from amounts made available. July 1963 to Oct. 1941 to July 1, 1943 to Oct. 1941 to June 30, 1944 June 30, 1944 lus 30, 1944 June 30, 1944 Cold Finished Bare 945 956 Wire Rope 350 430 1.3. Aircraft Steel 409 482 Barbed Wire and Staples 6,585 17,127 Cr. $1. Mn. Billets o 18,102 Pipe and Tubing (-)15,669 60,197 Cold Rolled Sheets 382 3,342 N.R. Sheeta and Plates 1,152 17,396 Cold Rolled Strip 28,414 28,414 Steel Wire 32,361 32,361 Total Released (toms) 54,929 178,807 Notes: All tons are short tons (2000 1bs.) net weight. a U.S.S.R. selections from U.S. offerings were in excess of the aggregate of shipping commitments and necessary stocks. Although shipping exceeded commitments, production control provisions of the Protocol were exercised and reduced quantities nade available below offerings in some instances. b From production or assignments in addition to quantities made available but not exported at the and of the Second Protocol period and after deductions of quantities repossessed or diverted before export. e From production or assignments (Lend-Lesse and cash purchases) after deductions of quantities repossessed or diverted before export. di Includes shipments for clearance through the Persian Corridor reported arrived in the Persian Gulf. . Data on discharge operations is U.K. incomplete. - SECRET Sheet 7 Third Prototal Performance Cumulative Performante 1st, 2nd and 3rd Protocols July 1, 1963- Exported October 1, 1941 to June 30, 1964 June 30, 1944 Item Third Made During Made Diverted la U.K. 7/2/42 Balance Protocol Available June Available Exported Arrived Last After Amiting Enroute offering To Date 1944 6/30/44 Export Forward- 6/30/44 . " # 4 Ing . . YI MATERIALS & PRODUCTS (Cont.) Farro Alloys (tone) VI-2A Ferro-Silicon 9,008 94 112 4,121 8,117 8,078 6,532 1,009 o a 169 VI-28 Ferro-Chronism 5,376 o o 2,155 4,113 4,140 3,646 494 o 0 o VI-20 Ferro-Phosphores o o o 4 4 4 o 0 o o VI-20 Ferro-Vanadium 223 o 223 225 225 225 o o o 0 VI-28 Ferro-Tungsten 572 o 571 573 573 573 o 0 o o VI-27 Ferro-Molybdanum 1,142 o 1,071 1,142 1,071 1,071 o 0 o 0 VI-20 Manganess Metal o o 11 11 11 11 o o o o VI-28 Other Ferro Alloys o o 0 o o o o o o o Total Ferro Alloys 14,7% 2,030r na 8,152 14,185 14,102 12,362 1,543 o 25 169 Non-Perrous Notals (toma) VI-3A1 Copper, Electrolytic - 14,360 7,660 14,389 15,506 15,392 2,152 o o o 13,240 VI-3A2 Copper Tubes, etc. 15,000 13,342 152 11,876 31,472 26,249 23,488 1,194 36 62 1,469 VI-3A3 Copper Base Alloys 107,520 123,668 1,032 113,759 276,790 246,948 213,489 17,014 o 125 16,320 VI-3A4 Bare Copper Cable & Tire 20,000 3,849 € 615 2,694 6,638 5,418 4,366 o o o 1,052 VI-381 Aluminum Ingota & Wire Bar- 35,760 71,998 13,986 64,3% 110,423 102,476 85,233 5,294 o 0 11,949 VI-382 Fabricated Aluminum 29,740 3,027 20,840 62,865 53,285 47,731 2,393 o 14 3,147 VI-383 Alumines Foil o & 0 64 158 158 158 o o o 0 VI-30 Magnesium 4,032 4,035 629 4,221 6,052 5,787 5,338 0 0 o 49 VI-301 Plg Nickel 3,600 4,400 150 3,612 9,122 8,114 7,286 428 0 o 0 VI-302 Monal Scrap 952 415h 338 413 415 413 433 o 0 o o VI-303 Michrome Wire & Strip 538 510 44 514 1,239 1,222 1,062 115 0 o 45 VI-304 Other Nichrome Basic Shapes - 267 107 267 762 695 563 o o 0 132 VI-305 Nickal Foil 0 3 o , 5 5 5 o o 0 o VI-306 Other Pure Nickel Shapes - 153 11 140 260 246 222 13 o o 11 VI-3EL Tia 0 0 o 8 10 10 10 o o o o VI-3E2 Tin Foil o o *0 o 52 52 49 , o o o VI-3E3 Babbitt o 131 5 54 237 156 86 20 0 o 50 VI-3F Zine 13,440 15,012 1,348 15,012 54,272 54,272 49,652 2,323 0 o 2,297 VI-30 Lead o o o 34 43 43 43 o 0 o o VI-3H1 Cedmium 112 112 37 112 313 313 313 o o 0 o VI-3H2 Certum 0 o o 4 18 18 18 o o 0 o VI-3H3 Cobalt 81 120 26 110 288 255 255 o o o o VI-384 Mereury 0 o o 30 895 895 895 o o o o VI-3H5 Sodium 0 391 o 341 1,493 1,44 1,168 258 o o 18 VI-309 Wise. Non-Ferrous Metale 0 12 1 10 12 10 10 o o o o Total Non-Ferrous Metale 201,035 282,782 29,148 252,903 579,340 523,876 444,005 29,455 36 201 50,179 Other Metals and Products VI-LA Molybdenum Commentrates (tone) 4,000 3,842 297 3,862 12,313 12,313 10,586 1,430 o 0 297 VI-48 Mine. Metallic Orea, Tailings & Concentrates (toss) - 0 0 o 3 3 3 o o o 0 VI-5 Pig Iron (tons) - 5,673 729 3,360 8,188 5,264 4,535 0 o o 729 VI-6A1 Marine Cable (siles) 746 401 116 461 1,662 1,364 977 129 0 o 258 VI-6A2 Submarine Cable (ailes) 373 % 0 255 839 833 783 50 0 o o VI-6A3 Field Telephone Wire (siles) 186,000 182,356 12,684 255,655 934,016* 934,016 775,411 127,617 197 3,7% 27,037 VI-644 Other Insulated Wire & Cable ($1000) (12,000km) 21,451 g 3,784 29,733 45,120 39,484 30,857 756 o o 7,871 VI-6A5 Copper Magnet Wire (81000) - 23 - 48 148 111 108 0 o o , VI-6M1 Wire Cloth & Sereen ($1000) 1,000 737 108 611 1,733 1,405 1,335 7 o o 63 VI-682 Wire Netting & Fencing (tons) # 0 120 328 278 278 0 0 o o VI-60 Fab. Structural Iron & Steel (toms) - 2,275 o 1,021 2,991 1,736 1,736 o 0 o o VI-60 Chains & Attechments (tons) - - 73 1,392 - 1,810 1,745 o 0 o 65 VI-68 Bolts, Buts, Screws, Numbers, Rivets, etc. (tons) - 1,486 516 1,830 5,230 2,526 2,010 o o o 516 VI-4P Other Fabricated Notal Basic Products ($1000) - 105 o 101 143 139 1,39 o o o o VI-60 Special Fine Wires, Strip, etc. (tons) 269 188 56 188 E E 351 4 o o 56 VI-68 Sucker Roda (toms) 419 o 419 1,072 1,072 1,072 o 0 o o VI-7A Anchore (tons) - - o 220 - 349 339 o o 0 10 VI-78 Other Metal End Products ($1000) - 13 477 1,357 770 696 6 o 0 & Notes: All tone are short tons (2,000 lbs.) net weight. Estimated -- Not available. . 0.8.5.1. relections from U.S. offerings mare in excess of the aggregate of shipping comitaents and necessary stocks. Although shipping exceeded commitments, production control provisions of the Protocol sere exercised and reduced quantities unde svailable below offerings in Fore Instances. > From production or serime-ete in ddition to quantities made available but not exported at the end of the Becond Protecol period and after deductions of quantities reporsered or diverted before export. e From production or sevignments (Land-Lerre and cash purchases) after deductions of currities reportenced or diverted before export. di Includes sidpents for clearince through the Persian Corridor reported arrived in the Persion Oulf. - Date on disclarge operations is U.K. incomplete. r and Ferro-Belybdeme substituted in maller quantities for Ferro-21lison and € Production reluted to reduce unsecconably large stocks. n Full offering not destred by U.S.B.R. - SECRET Sheet 8 Third Protocol Performance Exported Oumilative Performance lat, 2nd and 3rd Protocols 7/1/43-6/30/44 October 1, 1941 to June 30, 1944 Item Third Nade Protocol Available During 7/2/43- Made Diverted In V.K. Balance Offering to Date June 6/30/44 dvailable Exported Arrived 4 Last After Amiting Invoice a b 1944 e Export Forward- 6/30/44 Ing . . n MATERIALS AND PRODUCTS (cont.) Petroleus Products & Additives (tons) VI-9A Aviation Das over 99 Octane 11,652 68,103 152,228 120,223 o 20,789 0 VI-98 11,216 Aviation Gas over 67 Detame through 99 o 107 81,695 69,626 2,069 9,310 0 488 VI-90 Aviation Gas 07 Octana & Under o 1,089 1,976 1,976 o o o o VI-9D Automotive Gas 12,566 35,594 83,051 58,803 o 11,682 0 VI-98 12,566 Gasoline Blending Agents 33,685 292,639 419,633 348,775 VI-97 17,068 12,373 o Eerosane 41,417 905 3,985 7,946 7,058 0 0 o BBS VI-90 Fuel Oils 7,437 49,582 76,048 67,440 o o o VI-9H 8,608 Lobricating Oils & Creases 2,773 11,940 34,631 30,209 1,678 o o VI-91 2,744 Petrolaus Razes 669 1,886 5,634 4,401 204 199 0 630 VI-N Chemical Additives 667 1,826 4,353 2,982 o = o VI-98 Other 1,290 o 3 80 80 0 o o o Bub Total / / 70,354 466,754 / 867,275 711,775 21,019 54,434 o 60,047 From U.K. for U.S. Account (Replacement to U.K. from U.B.) Aviation Gas over 99 Cotane - - o 16,293 - 28,489 28,489 o o o 0 Total 360,000 485,047 £ 70,354 485,047 895,7645 895,764 740,264 21,019 54,434 o 50,047 From Abeden for U.S. Account (Replacement to Drittsh from U.S.) Aviation Gas over 99 Octane Gasoline Blending Agents } 120,000 23,520 f 23,520 171,920 171,920f 171,920 171,920 - - - - Shipmente from U.K. to U.S.S.R. as Replacements Aviation Das over 99 Octane - - - - - (17,148) Aviation OAS 87 through 99 - - - - - (14,719) Additional U.I. Allocation to at U.K. Expense as Re- placement for Diversion to U.K. Aviation Cas over 99 Octane - - - - (20,789) - Oasoline Blending Agent - - - - 9,182) - Chemicals Basic Inorganic (toms) VI-10A1 Aumonium Chloride (-)2,508 o 75 2,997 726 726 o o o 0 VI-10A2 Amonium Sitrate (-)2,406 o 0 3,394 3,394 2,602 11) 0 $ 610 VI-10A3 Amonium Sulfgoyanide o o o 3 3 3 0 o o o VI-10A4 Barium Peroxide (-) 201 o 25 131 131 131 o o o o VI-10A5 Borie Acid 704 420 $ 1,243 1,103 516 168 0 o 419 VI-1046 Calcium Carbide 356 10 313 611 482 440 o o o 42 VI-10A7 Calcium Chloride 262 261 334 816 816 726 0 o 0 90 VI-10A8 Caustie Boda 40,320 35,598 6,380 39,174 63,097 63,020 55,631 706 o o 6,68% VI-1049 Phosphorus (-) us o 590 2,850 2,555 2,070 485 o o 0 VI-10A10 Potentium Carbonate 392 224 725 728 728 506 0 0 0 224 VI-10A11 Postessium Chlorate 162 o 457 1,344 900 860 0 o o 40 VI-10A12 Potassium Dichromate 424 13 478 872 838 825 o o o 13 VI-10413 Potassium Nitrate (-)1,051 o 1,014 2,560 2,178 2,041 o o o 137 VI-10414 Potassium Sulphate (-)1,246 0 175 580 580 535 o 45 0 o VI-10415 Potassium Tetreoxide 21 205 o 252 450 420 409 11 0 0 o VI-10A16 Soda Ash 802" 363 1,229 2,191 1,863 1,500 o o o 363 VI-10A17 Bodium Cyanida 528 105 360 528 360 180 o 0 0 180 VI-10A18 Sectus Bromide (-) 337 o 142 2,138 1,812 1,420 334 C o 15 VI-10A19 Thorium Fitrate o o 12 12 12 6 6 0 o o VI-10A20 Sodium Dichromate 537 157 736 1,137 1,062 826 54 o o 182 VI-10A99 Mins. Inorgania Chemicals 563 152 650 1,190 1,084 908 17 o o 159 Basic Organic (tons) VI-10H1 Acetone 6,720 5,287 640 4,870 6,288 5,776 4,070 527 o 0 VI-1082 1,179 Aniline 051 (-)2,191 o o 3,521 3,521 2,466 927 16 112 o VI-1083 Anthraome / o o 0 9 9 9 o o 0 o VI-1084 Buty1 Acetate / 1,769 392 1,825 1,628 1,828 1,222 96 0 o 510 VI-1085 Buty1 Alsohol / 2,628 772 2,628 2,628 2,628 1,407 103 o o 1,118 VI-1086 Campher 330 34 330 330 330 214 0 o 0 116 VI-1087 Cassin 2,244 24 1,947 2,244 1,947 1,923 o o o 24 VI-1088 Citris Acid 560 o 560 1,096 1,096 1,040 56 0 o o VI-1099 Oresola o o o 441 292 231 61 o o o VI-10810 Dibutyl Phthalate 466 124 4,668 5,706 4,868 3,796 859 R o 143 VI-10811 Diethylene Glycol 184 0 352 552 526 526 o o 0 0 VI-10812 Dimethyl Aniline o o 126 2,510 2,302 1,797 420 o o 65 VI-10R13 Diphenylamine o o 3 2,080 1,489 1,233 256 0 o o VI-10014 Diphenylguanidine 135 28 222 380 337 273 o o o 3 VI-10415 Ithyl Asetate 1,314 196 1,314 1,316 1,316 E 0 n o 474 VI-10016 2thy1 Alochol from U.S. 141,371 9,288 141,371 161,524 161,524 147,586 159 2 0 13,779 2thy1 Alochol from U.K. for V.S. Assount Replacement to U.E. 107,520 20,187 o 20,187 20,187 20,187 20,187 0 0 o o from U.S. Notes: All tons are short tona (2000 1bs.) zes wight. . V.B.B.R. selections from U.S. offerings VEN in extens of the appropate of shipping commitments and necessary stocks. Although shipping exceeded commitments, production control provisions of the Protocol 1879 asservised and reduced quantities missing svailable below offerings is some instances. b From production or assignments is addition to quantities made available but not exported at the end of the Second Protocol period and after deductions of quantities repossessed or diverted before export. e From production or assignments (Lend-Lease and cash purchases) after deductions of quantities repossenced OF diverted before export. é Includes shipments for clearance through the Persian Corridor reported arrived in the Persian Oulf. . Data on discharge operations is U.K. incomplate. / Petroleum products más svailable M exported. I SECRET Sheet 9 Third Protocol Performance Demissive Performance Let, 2nd and 3rd Protonal July 1, 1943- Exported Ortober 1, 1941 to June 30, 1944 June 30, 1944 The Third 1 During Diverted In U.S. fallows Protocol svailable June 7/2/42 Made Deported Arrived Loss ifter smitting Benefits Offering To Date 2944 6/30/44 available Export Forward- 6/30/44 a be . 4 Log . . yi MATERIALS & PRODUCTS (Cont.) Chemicals Insia Organde (Tree) VI-10817 Eliglane Chlorohydrise 200 o 220 231 231 231 o o o o VI-10818 Ethylene Dibromide (-32,550 o 593 2,065 2,042 2,042 o o o o VI-L0019 Paylene Glycal 3,360 1,795 , 4,134 6,744 8,665 8,116 189 o o 300 VI-LOB20 Formaldetyde o o o 560 494 434 a o o o VI-10021 Purfural / 300 49 299 300 E 249 0 o o R VI-10822 Glyserine free e. 5. 2,152 358 3,522 11,818 10,679 10,020 302 o o 358 Glyverine, Land Lease 6,720 Retrassaferred from 8. 1. 5,478 0 5,478 5,478 5,478 5,478 o o o 0 VI-10823 Sexualne (Dretropine) 6,720 6,3% 351 6,737 14,450 12,245 11,315 357 195 31 347 VI-10824 Methenol 6,720 3,3% 220 5,566 20,575 10,584 14,067 3,242 ym 495 409 VI-10825 Napthenic Acté 0 o 127 600 127 127 0 o 0 0 VI-10826 Phene] 11,160 9,146 564 10,525 27,025 25,020 21,850 1,732 170 - 1,188 VI-10827 Potession Buty1 433 250 756 1,529 1,257 921 56 o o 280 VI-10828 Resorvin o 50 51. 120 111 71 0 o 0 $ VI-10829 Rhodemine o o 1. 6 6 6 0 o o o VI-10830 191 40 178 378 363 345 10 0 0 . VI-10031 firestion Caslate o o 60 96 88 2 4 0 0 o VI-10832 Total 40,320 21,254 o 27,350 43,124 63,124 57,764 3,192 399 415 1,3% VI-10833 Trichlorethylene 28 28 140 252 252 224 o o 0 28 VI-10836 Paraphenitidia a / as 5 ym 424 424 356 o o o $ VI-10999 Rise. Organic Chamicals 1,412 242 1,401 2,257 1,780 1,535 25 o o 220 VI-100 Casse, Compressed & Liquified 25 o - 32 7 , o o o o Paints, Pigments, etc. VI-1001 Paints, varalates, etc. 531 197 397 878 628 496 0 0 o 1,30 VI-1002 Carbon & Lamp Black 2,456 196 209 2,469 2,447 2,251 0 o o 196 VI-1003 Other Plgants 1,835 190 690 2,500 1,324 1,156 52 116 VI-1009 Dryors, etc. 5 o 5 12 12 12 o o 0 o VI-108 Fortilizers e o 0 o o o o o o 0 VI-10P Inserticides e 12 12 o 12 o o o e 12 Plastics VI-1001 Planol Formaldatyde Resine - 22 3% 1,218 1,188 1,087 79 o o a VI-1002 Valoraised Filer 1,479 254 2,732 4,557 4,368 3,2% 496 , 39 556 VI-1003 Callulose File Sase 297 40 251 470 392 335 o 0 o 57 VI-1009 Other Plastice 24. o 4. 62 71 71 o 0 o . o Miss. Chemicals including Industrial VI-1081 Amonia Rubber Paste 145 119 160 476 4% 357 o o o 119 VI-1082 Estayl Centralite 1,110 o 1,084 1,802 1,592 1,592 o o o 0 VI-1083 Beller Compounda 933 234 576 1,444 960 746 214 VI-1084 Miss. Flotation Resgests 480 163 438 480 438 253 22 o o 163 VI-1085 Twitchell Respect 224 0 402 731 619 619 o o o 0 VI-1086 Photogalatic 112 16 = 151 120 104 o o o 16 VI-10899 Other Chamicals / 198 & 66 566 445 395 44 o 0 6 Offering Miss. Chesdoals 9,200 - - - - - - - - I - Total Chamicals 238,781 267,256 23,157 302,981 479,420 460,411 409,679 15,221 1,22 1,233 33,006 Note: The following all of which have been released during the third Protocol Partod from U.S.S.S. export stocks for redistribution have been deforted from amounts made available. VI-10A1 Amountion Calorida 1,828 (Tona) VI-1082 iniline oil 2,191 (Tone) VI-10A2 Amonium Ritrate 2,406 VI-10810 Dibutylphalate 149 VI-10A4 brie Percride 201 VI-10814 13 VI-10M9 Phosphore 1,027 VI-10818 Ethylene Dibromide 666 VI-10413 Potensium Ritrate 1,051 VI-10819 Riglene Glyesl 7 VI-10434 Sulphate 1,246 VI-10824 Methemol 622 VI-10a18 Soldium Broadde %5 VI-10832 Tolacl 10,091 VI-20499 Potession Permangicate 11 VI-1062 Centralite 20 Total Chestosls Belonced 22,496 Textiles VI-11A Cotition Cloth (1000 yda) 26,045 f (-))68 15,199 63,610 £ 89,520 0,0% 64,80) 2,662 o o $6,433 VI-118 Woolen Cloth (1000 yda) 18,000 f 13,886 1,928 27,245 $48,168 36,457 30,426 1,258 o o 4,773 VI-110 Webbing (1000 yda) 12,000 17,706 413 13,368 61,356 35,055 29,118 2,427 o 0 3,530 VI-110 Terpoulin (1000 yda) 3,000 f 3,465 - - £11,456 - VI-LIE Other Cloth (1000 yds) - - : - : : VI-LIF Cordage a Tyles (lone) 4,480 7,847 101 5,988 0,421 6,990 6,853 90 o 0 47 VI-110 Other Basic Testiles ($1000) - 2,544 513 2,258 2,465 2,297 1,671 0 o 0 626 VI-12A Fish Nate (loss) - 668 27 430 800 489 406 o o o et 11-123 Other Testile Products ($1000) - 3,913 287 1,737 6,009 3,887 2,941 206 e o 740 Leather VI-13 Leather (lose) 18,000 18,147 2,765 18,303 45,450 41,578 33,752 4,757 $ o 2,600 VI-14 Leather Products ($1000) - 61 2 18 73 3 27 0 0 o 2 Bubber VI-15 Crude hubber (toms) - o *** o 0 e o o o 0 o VI-164 Vistenex (tom) - 355 8 440 687 - 545 27 0 0 R VI-148 Other Systhetic Rubber (tome) - o o 34 504 504 504 o o o o VI-1TA Shook Absorber Card (yda) o 32,383 o 5,000 229,752 171,111 166,111 5,000 e 0 o VI-178 Other Rubber Materials ($1000) - 2,348 379 3,095 3,868 3,529 3,191 68 e o 270 VI-184 Tires (1000 with) - 1,285 112 1,466 2,60 2,423 2,300 % 4a. o 166 VI-18a Tabes (1000 velte) - 1,409 112 1,475 2,752 2,580 2,256 % 43 o 167 VI-189 Babber Bose (81000) - 3,826 439 4,667 6,113 5,504 155 o o 861 VI-180 Other Rubber Products except Apparel ($1000) - 9,367 2,156 10,232 13,600 12,375 9,535 1% o 0 2,666 Rotes All tone are short tone (2000 1he.) net wight. -- Data not swillable. a U.S.B.B. exiertions from U.S. offerings - to ----- of the aggregate of shipping commitments and necessary stocks. Although shipping exceeded comittments production control provisions of the Protocol - exercised and reduced quantities made available below offerings is - Instrance. b From production or assignments in addition to quantities made available but not exported at the end of the Becond Protocol period and after - durtime of quantities repossented or diverted before export. . Pros production or assignments (Land-Lasse and cash purchases) after deductions of qualities repossessed or diverted before export. 4 Includes shipmente for classance through the Persian Corridor reported arrived is the Persian Galf. 1 Data se discharge operations is V.L. incomplete. The following all of which have been released during the Third Protocol period from V.S.S.R. export stocks for redistribution to others have been deducted from amounts made available. VI-11A Cotton Cloth (1000 pts.) 17,418 - VI-118 Woolen Clash (1000 you 1,275 VI-IID Tarposlin (1000 yda.) as Regraded Unclassified SECRET Sheet 10 Third Protocol Performance Reported Comulative Performance 1st, 2nd and 3rd Protocols 7/1/43-6/30/44 October 1, 1941 to June 30, 1944 Item Third Made In U.K. Belance Protocol Available During 7/2/43- Made Diverted Arrived Awaiting Enroute Offering to Date June 6/30/44 Available Exported Lost After 4 Forward- 6/30/44 b 1944 # a Export Ing . . VI MATERIALS AND PRODUCTS (cont.) Footwear VI-194 Aray Boota (1000 pre.) } 4,074 703 4,887 9,142 8,835 7,364 570 6 o 895 VI-198 Ski-Boote (1000 pro.) 3,600 100 o 154 225 213 209 0 o o 4 VI-19C Rubber Boots and Shoes ($1000) - 134 15 670 1,062 930 907 0 0 o 23 VI-19D Other Boots and Blues ($1000) - 1,973 173 1,063 2,489 1,537 1,307 14 o o 216 Apparel except Footwear VI-20A Leather Jackets (wite) o 35,286 -- -- 175,000 .. -- : ⑉ .. -- VI-20B Leather Belts (1000 units) o 255 31 1,099 2,635 2,430 2,175 193 0 0 e VI-200 Misc. Leather Apparel ($1000) - - -- -- -- - VI-20D Rubber Apparel ($1000) - - -- -- -- - VI-202 Other Apparal ($1000) - 7,194 393 7,034 12,362 10,408 8,146 TO o o 2,192 Abrasives VI-21A Abrasive Grain (tons) 4,000 7,606 1,512 7,878 10,264 9,255 6,288 91 o o 2,876 VI-21B Abrasive Products ($1000) 4,000 3,876 452 4,183 10,399 10,291 8,469 958 33 0 831 Carbon and Graphite VI-22A Graphite Powder ( tond 1,120 1,950 179 1,656 2,984 2,387 2,011 201 o 0 175 VI-22B Graphite & Carbon Electrodes (tons) 5,757 6,523 998 6,409 15,963 14,561 11,954 1,470 25 o 1,112 VI-22C Other Graphite Materials ($1000) (1,619tons) 512 15 379 1,411 1,285 1,144 100 o 0 41 Paper and Paper Products VI-23A Parchment Paper (tons) 1,680 0 176 1,743 2,658 2,530 2,354 0 o o 1% VI-238 Map Paper (tons) o 3,497 £ 653 3,412 3,497 3,412 2,012 265 o o 1,135 VI-230 Cigarette Paper (tons) 336 0 159 543 1,042 935 708 68 o o 159 VI-23D Condenser Paper (tons) 146 109 36 117 264 254 218 o o o 36 VI-238 Other Pulp, Paper, etc. ( tond - 104 -- ⑉ 106 .. VI-24 Paper Products ($1000) - 39 - - 41 -- Photographic Materials VI-25A1 Photographic File à Paper ($1000) - H # -- -- VI-2542 Reproduction Paper Stock ($1000) -- - - -- -- VI-250 Finished Pictures, etc. ($1000) -- se - ## - VI-250 Misc. Photographic Materials ($1000) -- ⑉ .. -- -- Asbestos VI-26A Asbestos (tons) - o 0 0 o o o o o o o VI-268 Asbestos Materials ($1000) . 86 18 125 207 200 186 4 o o 10 Other VI-27 Buttons ($1000) - 554 25 673 1,012 702 627 49 o o 25 VI-97 Other Crude Materials ($1000) - - - se 4 ⑉ VI-98 Other Basic Materials ($1000) - 23 -- - 80 - VI-99 Other End Products ($1000) - -- -- -- - - Notes: All tons are short toos (2000 1bs.) net weight. Estimated - Not available . U.S.S.R. selections from U.S. offerings were in excess of the aggregate of shipping commitments and necessary stocks. Although shipping exceeded commitments, production control provisions of the Protocol were exercised and reduced quantities made available below offerings in some instances. b From production or assignments in addition to quantities made available but not exported at the end of the Becond Protocol period and after deductions of quantities repossessed or diverted before export. e From production or assignments (Lend-Lease and cash purchases) after deductions of quantities repossessed or diverted before export. 4 Includes shipments for clearance through the Persion Corridor reported arrived in the Persian Oulf. . Data on discharge operations in U.K. incomplete. f Substituted for parchment paper. will 94 TREASURY DEPARTMENT OFFICE OF THE SECRETARY September 9, 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 30, 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 95 Federal Reserve Bank of New York September 8, 1944. CONFIDENTIAL Dear Mr. Secretary: Attention: Mr. H. D. White I am enclosing our compilation for the week ended August 30, 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 ANTIYSIS OF BRITISH AND FRENCH ACCOUNTS Strictly (In Fillions of Dollars) Week Ended August 30, 1944 Confidential BANK OF LINGLAND (BRITISH BANK OF FRANCE PERIOD DEBITS CREDITS Net Incr. (+) llet. Incr. (+) Gov't Transfers to Proceeds of Official Sales of Transfers from Other or Decr. (-) Total Total or Decr. (-) Expendi- Total Canadian Other Total Securities Official Credits in 0 Funds Debits Gredits in 0 Funds tures (Official) 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 2,109.5 108,0 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 Phird year of war (1) 1,235.6 904.8 7.7 223.1 1,361.5 21,8 5.5 57.4 1,276.8 + 125.9 18.5 4.4 - 14,1 Fourth year of war(1) 764.0 312.7 170.4 280.9 1,072.3 - 0.5 155.1 916.7 + 308.3 10.3 1,0 - 9.3 1943 16,8 10,6 22.0 86.2 15.0 71,2 + 36.8 - 40.4 - September - - - 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 98.0 + 36.4 - December - - - - - - 1944 January 44.6 22,2 10.6 12.0 127.5 - - 1,0 126,5 + C2.7 - - - February 143.6 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 - - - May 125.1 28.8 8.1 88,2 164,7 - - 37.0 127.7 + 39,6 - - - June 101.9 24.1 - 77.8 95.7 - - 28,0 67.7 - 6,2 - - - July 150.9 12.3 7.3 131.3 85.9 . - 10.0 75.9 - 65.0 - - - August Week Ended August 9, 1944 10.0 3.2 1.1 5.7 7.3 - - - 7.3 - 209 - - - 1.6 5.0 5.0 - 2.5 - - - August 16, 1944 7.5 5.9 - - - . August 23, 1944 58.8 2.5 - 56.3 9.4 - - - 9.4 - 49.4 - - - August 30, 1944 4.6 2.5 - 2.1 24.7(k) - - - 24.7(k) + 20.1 - - - Average Weekly Expenditures Since Outbreak of Jar See attached sheet for footnotes. France (through June 19, 1940) $19.6 million England (through June 19, 1940) $27.6 million England (through June 20, 1940 to l'arch 12, 1941) 54.9 million England (since Larch 12, 1941) $21.5 million Re graded 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, wrich 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 $334 million. (e) 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. (J) For monthly breakdown see tabulations prior to September 29, 1943. (k) Includes $ 7.4 million apparently representing current and accumulated dollar proceeds of sterling area services and merchandise exports, and $13.8 million in connection with the expenses of our armed forces abroad. AMALYSIS OF CARADIAN AND AUSTRALIAN ACCOUNTS (In Millions of Dollars) Strictly Week IndedAugust 30, 1944 Confidential BANK OF CANADA (and Canadian Government) COLI ONNEALTH BAX K OR AUSTRALIA (and Australian Government) DEBITS CREDITS DEBITS CREDITS Transfers Transfers from Official Transfers to Proceeds British A/C Net Incr, to Proceeds Net Incr. Official of (+) or Official of (+) or PERIOD Total British Others Total Gold For Own For French Other Decr. (-) Total British Other Total Gold Other Decr. (-) Debits A/C Debits Credits Sales A/C A/C Credits in $Runds(e) Debits A/C Debits Credits Sales Credits in $ Runds (e) First year of war (a) 323.0 16,6 306.4 504.7 412,7 20,9 38.7 32,4 + 181,7 31.2 3.9 27.3 36,1 30.0 6,1 + 4.9 har period through December, 1940 477.2 16.6 460.6 707.4 534.8 20.9 110.7 41.0 + 230.2 57.9 14.5 43.4 62.4 50.1 12.3 + 4.5 Second year of war(b) 460.4 - 460.4 462,0 246.2 3.4 123.9 88.5 + 1.6 72.2 16.7 55.5 €1.2 62.9 18.3 + 9,0 Third year of war (c) 525.8 0,3 525.5 566.3 198.6 7.7 - 360.0 + 40.5 107.2 57.4 49.8 112.2 17.2 95.0 - 5.0 Fourth year of war(d) 723.6 - 723.6 958,8 47,1 170.4 - 741.3 + 235.2 197.0 155.1 41.9 200,4 - 200.4 + 3.4 1943 September 47.2 - 47.2 70.1 - 10.6 - 59.5 + 22.9 16.8 15.0 1.8 20.0 - 20.0 + 3.2 32.1 - 32.1 71.3 - - - 71.3 + 39.2 42.8 40.5 2.3 26.5 - 26.5 - 16.3 15.4 0.1 15.3 95.1 - 5.9 - 89.2 + 79.7 6.6 3.5 3.1 18,2 - 18.2 + 11.6 146.8 0.3 146.5 55.1 - - - 55.1 - 91.7 39.7 36.5 3.2 27.0 - 27.0 - 12,7 1944 32.3 - 32.3 78.5 - 10.6 - 67.9 + 46.2 6.0 1.0 5.0 11,3 - 11,3 + 5.3 25.4 - 25.4 118.5 23,1 2,1 - 93.3 + 93.1 31.3 29.0 2,3 28.6 - 28.6 - 2,7 30.3 0.5 29,8 88.6 15.0 12.5 - 61.1 + 58.3 27.6 24.5 3.1 29,9 - 183.6 29.9 + 2.3 - 183.6 96.7 - - - 96.7 - 86.9 29.5 27.5 2.0 39.4 - 154.2 39.4 + 9.9 154.2 - 86.3 - 8,1 - 78.2 - 67.9 42.6 37.0 5.6 39.6 - 100.1 100.0 39.6 0.1 - 3.0 63.3 - - - 63.3 - 36.8 31.4 28.0 3.4 21.8 - 21.8 43.9 - 9,6 - 43.9 13.2 - 7.3 - 65.9 + 29.5 20,4 10.0 10.4 20.6 - 20.6 + Og2 703 - 7.3 10.8 - 1.1 - %7 + 305 47 - 107 0,7 - 0.7 - LO Japack 16, 1944 309 - 3.9 6.3 - . - 6.3 + 2.4 0.2 - 0a2 0.4 e 0,4 + 0,2 1944 as . 205 7.3 - - - 1+3 + 400 0.1 - 0.1 3.6 e 3.6 + W 1300(4) 1308 %4(f) * 6 904(8) 4,4 1.4 - 1.4 E - ₫.1 - America Heakly 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 breakdom see tabulations prior to October 14, 1942. Third year of sar 10.1 million, (d) For monthly breakdown see tabulations prior to September 29, 1943. hereb year of war 13.9 million, year of ver (through August 30, 1944) (a) Reflects ci anges in all dollar holdings payable on demand or esturing in cos year. 16.1 million. (r) Does not reflect transactions in short term U.S, securities. (g) Includes million received from by York Supplies, accounts of Canadisp Chartered Bankay million deposited Unclassified 99 CABLE TO WINANT AND MANN, LONDON, FROM WAR REFUGEE BOARD. Reference your no. 7191, September 2, 1944, concerning License W-2258. Information given you by Poles incorrect (repeat incorrect). Remittances to finance operations envisaged by License W-2258 will be made by Polish War Relief of USA, Inc. through regular banking channels to Jan Kwapinski and/or Jan Stanozyk and/or Ludwik Grosfeld and/or Emanuel Scherer, London. Use of dollar currency is an acceptable way of implementing third method specified in license. THIS IS WRB CABLE TO LONDON NO. 2 4:30 p.m. September 9, 1944 FH:lab 9/8/44 100 DSH-693 Caserta Distribution of true reading only by Dated September 9, 1944 special arrangement. (SECREW W) Rec'd 10:24 p.m. Secretary of State, Washington. US URGENT 338, September 9, 6 p.m. Ackerman's 108. Head of OSS mission Bucharest, just returned here, received communication from International Red Cross that Germans intend to arrest the 300,000 Jews still free in Hungary and commence another mass de- portation to Germany. Raymond Courvoisier of Inter- cross who was in Hungary three weeks ago urged all immediate steps be taken to expedite emigration to Palestine. 088 also urges that a WRB representative go to Buhharest soon as possible not only to aid above movement but also to give assistance to 2000 to 3000 Jews now in Rumania who are destitute and to aid approximately 500 American citizens also in Rumania. $5000 fund requested by OSS will not be used by it since problem is too great for it to handle. However Colonel Rodrigo of OSS spent $650 to aid five Hungarian and three Polish families to get to Constanza en- route Palestine. He asks that money be refunded by payment to his account OSS Washington. He. is also trying to get transport plane assigned for flights from Bucharest to Istanbul. If decided that Hirschmann should go to Bucharest he should imme- diately contact OSS mission Istanbul to ascertain whether plane has been secured and to arrange passage. More complete address mission will be cabled later. Correction Rodrigo's funds were personal and should be deposited his account Riggs Bank. Repeated to Ankara. JMS KIRK NPL 101 CABLE FROM WAR REFUGEE BOARD TO MINISTER NORWEB FOR DEXTER, LISBON, PORTUGAL. Please refer to your 2657 of August 29, concerning the projects which remain to be carried out by the Board from Portugal. Since, in your opinion, the problems outlined by you can within three and possibly two months be brough to the stage where the regular Legation staff can carry on the functions still remaining, it is suggested that you plan to conclude within that time, and in any case as rapidly as possible, your operations in Portugal as Special Representative of the War Refugee Board. In regard to your recommendation that a representative be sent to France under the auspices of the War Refugee Board, reference is made to our of indicating that the Board's activities should be strictly limited to the rescue and relief of refugees in enemy occupied territory and that refugee problems in liberated areas are not regarded as being within the Board's functions. At the present time, the military situation in the West is too fluid to make feasible the use of France as a base for resoue and relief operations ine enemy territory. Pursuant to your suggestion, the Unitarian Service Committee is being advised that you and Widen may soon be free to return to your previous employment if the Committee desires your services. Pehle expresses his appreciation and thanks for the services you have rendered the Board. THIS IS WRB CABLE TO LISBON NO. 88 #:30 p.m. September 9, 1944 MJMarks:hmd 9/8/44 102 fem Distribution of true reading only by special September 9, 1944 arrangement. (SECRET) 5 p.m. AMEMBASSY, LISBON 2408 The following for Dexter is WRB 86. 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 pro- ceeding to Venezuelan territory. You may find the foregoing helpful in inducing Portuguese authoritiesto 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 opportunities in this respect. HULL (GEW) WRB:MMV:KG WE SE BOL 9/1/44 Miss Chauncey (For the Sec'y), Abrahemson, Akain, Cohn, DuBois, Drury, Friedman, Gaston, Hodel, Laughlin, Lesser, Mannon, Marks, McCormack, Pehle, Sargoy, Standish, Weinstein, Cable Control Files 103 CABLE TO AMEMBASSY, MADRID, SPAIN Department and Board are advised that there are in camp Belsenbergen near Hanover about 155 Sephardic Jews having Spanish passports whose entry into Spain has been promised by the Spanish government and for whom, it is understood, exit permits are now available. In view of imminent danger to lives of these persons, you are re- quested immediately and vigorously to intercede with Spanish government to bring about their release and admission into Spain. Assurances previously given regarding speedy evacuation of refugees from Spanish territory fully apply to these persons. Should transportation be impossible in view of military developments, Spanish government should be urged to exercise greatest possible vigilance in safeguarding the lives of these persons, by placing them under direct protection of Spanish diplomatic or consular personnel and by all other appropriate methods. 4:30 p.m. September 9, 1944 BAkzin:ar 9/8/44 104 RP-686 Stockholm Distribution of true reading only by Dated Deptember 9, 1944 special arrangement (SECRET w) Rec'd 9:31 p.m. Secretary of State Washington 3582, September 9, 9 p.m. Latest cables received. (Following is for Rabbis Aron Kotler and Abraham Kalmanowits of Vaadhahatzalah Emergency Committee from Rabbi Wolbe and is our No. 78 for WRB). On account of renewed deportations Swedish Ambassador and all other neutral Ambassadors visited Horthy and received promise that Hungarian Government will do everything to end deportations. The Swedish Government has sent a special representative to Budapest to handle all problems in connection with the rescue of Jews. It is planned to buy homses for account Swedish Legation under Swedish extraterritorial rights and in which Jews should live. Our authorities are granting immigration visas, letters of protection, provisional passports and citizenships. We have agreed to some expenses in this connection to which we hope you will agree. Following your cable advice, I visited Professor Ehrenpreis. He says that more than has already been undertaken cannot be done and no special arrangements can be undertaken even for children. A renewed appeal to King is absolutely impossible. Also we have presently no possibilities for the group. in Bergen Belsen. Only food parcels could be sent firom here. It is hoped by next week that general licenses will be effectuated for food parcels principally granted for Jews in Germany. Please also inform Jacob Rosenheim about this. With regard to Lithuania, it is still impossible to obtain connections and therefore we have not been able to obtain contact with the camp at Krotingen. JOHNSON EDA 105 ORIGINAL TEXT OF TELEGRAM SENT FROM: Secretary of State, Washington TO: American Legation, Bern DATED: September 9, 1944 NUMBER: 3120 SECRET FOR MCCLELLAND. Reference is made to your 5579 of August 26, paragraph one. You may draw attention of Intercross to text of this Government's reply to Intercross of August 11 (see Department's 2657 of August 2) in which it undertook to arrange for the care of all Jews permitted to leave Hungary under the present circumstances, who reach neutral or United Nations' territory, and to find for them temporary havens of refuge. Nothing in that reply implied limitation to Jews in possession of Palestine certificates or planning to go to Palestine. Furthermore, you may draw attention of Intercross to special provisions made in favor of persons to whom American immigration visas were issued or authorized after July 1, 1941 (Department's 2605 of August 1); to extension of children's visa facilities to Jewish children from Hungary (Department's 2877 of August 21); to provisions in favor of close relatives of American citizens and alien residents (Department's 2918 of August 24); and to assurances obtained by this Government from Ireland and Honduras in favor of children from Hungary (Department's 2978 of August 29, WRB 1515to Bern). In addition, Nicaragua has agreed to admit 100 children from Hungary, and Mexico has expressed its willing- ness to give emergency shelter to refugees from enemy territory for duration of war. The cooperation of Switzerland, Sweden, Spain, Portugal, and Turkey has also been requested by this Government in respect. of admission of any Jews who would be permitted to leave Hungary, and these requests have been partly successful. Spain alone has authorized 2,000 visas. Sweden is reported to have agreed to admit children, numerous adults, and persons to whom American visas were issued or authorized after July 1, 1941. Rumania is also cooperating, but current events on Hungarian-Rumanian border presumably preclude evacuation via Rumania. Pointing out the foreoging to Intercross, you may reiterate this Government's refusal ever to limit its undertakings with respect to the emigration of Jews from Hungary to any number or particular category of Jews or to Jews going to any particular country and its protest against the attempt of German and Hun- garian authorities to introduce such arbitrary limitations. Recommendation contained in last paragraph of your 5579 is appreciated and is bein acted upon. THIS IS WRB CABLE TO BERN NO. 158 Regraded Unclassified 106 CABLE TO MINISTER HARRISON AND MCCLELLAND, BERN, SWITZERLAND 1. Reference is made to your 5689 of August 31. In replying to Swiss notice ofAugust 26, please ask Swies political department to emphasize that the German arguments notwithstanding, this Government is unable to recognize any right of the German authorities to pass upon the validity of documents issued in the name of other sovereign governments. Furthermore, none of the American republics upon whose documents this German procedure is being practiced can, in justice to their own proper interests, allow that practice to go unquestioned. Accordingly, this Government insists on the stand taken by it in Department's 2490 of July 21 paragraph two and rejects as irrelevant any attempt by German officials to question the validity of Latin American documents whether on the basis of antecedents of Jews involved or of the type of identity papers or on any other basis. It should be emphasized in this connection that German attitude was at first to doubt the eligibility of persons involved for exchange and the acceptance of documents involved by issuing governments. Now that eligi- bility for exchange has been confirmed and the several issuing governments have notified Germany through protecting powers that the document holders must be protected notwithstanding any doubts as to the validity of the documents, German officials introduce new excuses for their failure to comply All these excuses are emphatically rejected by this Government and the attention of German officials invelved is drawn to the serious consequences of their attitude. In this connection, please advise whether you have been able to convey ,to. proper. quarters the message contained in paragraph three of Department's 2490 of July 21. It is believed that in the light of the military situation it is possible to sway German officials by confronting them with a suf- ficiently emphatic statement of this Government's position. With reference to lists of bearers of Latin American documents suggested in ultimate and penultimate paragraphs of your 5689, disturbed var conditions have interfered with communications between Latin American governments and their European missions, resulting in incomplete records which make the compilation of such lists difficult. However, to assist the Swise in this matter it is believed that the Legation should endeavor to obtain with the aid of McClelland and the local representatives of organizations that have records on the subject, lists which are as complete as possible with a view to transmitting them to the Swiss authorities. The Department will suggest to various Latin American governments the urgency of confirming to Swies authorities the authenticity of such lists. It is hoped, however, that in view of the humanitarian considerations involved and of this country's status as Power handling exchange of persons whose eligibility would be established by being placed on the list, Swiss officials will agree to transmit the lists 107 - 2 - to Germany even without such confirmation. You may include in such lists the persons envisaged in Department's 2407 of July 13 paragraph numbered six. Precaution should be taken, however, to inform Swiss and German authorities that such lists cannot (repeat not) be considered complete. Should Germany inquire of Swiss Legation or government whether any particular individual not (repeat not) appearing on such lists is pro- tected by Switzerland, it is suggested that an answer along the following lines would be both substantially correct and calculated to save human lives: Owing to wartime conditions, Swiss records regarding citizens of countries under Swise protection are incomplete and 80 are records of several Latin American legations in Bern; if Germany would inform Switzerw land of the claimed nationality of the person involved, inquiry will be made of the government of the country concerned; and the Swiss will con- sider it understood that pending receipt of an answer to such inquiry such person will be treated as and accorded all the rights and privileges of a citizen of the country whose nationality he claims. 2. The following information received from Amembassies in various countries is transmitted for McClelland's information and guidance in con- nection with protection of victims of enemy persecution, representation in Hungary, and shelters for Jewish children from Hungary: Portuguese government is in agreement in principle to admit for temporary refuge Hungarian Jewish refugees, preferably in lots of three to four hundred. Portuguese government has already informed Hungarian government of its interest in such people. It has persuaded Hungarian government to issue exit visas and has itself given Portuguese visas to a number of them, but Germans have refused to permit them to leave as yet. Some of these persons are now in asylum in the Portuguese legation in Hungary. The Hungarian government is thus aware of the Portuguese interest in this problem. Venezuelan government has authorized its legation in 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. It has also requested the Swies Political Department to extend the protection of Venezuelan interests to Hungarian territory and other countries of Central and Eastern Europe for the prupose of aiding the bearers of Venezuelan passports in those regions. President Vargas of Brazil has approved the plan to bring 500 refugee children to Brazil, provided that the Brazilian Government would not incure the expenses of transportation to and maintenance in Brasil. He has accord ingly charged General Ivo Scares, Chairman of the Brasilian Red Cross, with making suitable arrangements with appropriate Jewish welfare agencies in Brazil to take care of them. Official announcement is to follow shortly. Government of Uruguay has agreed to the admittance of 500 refugee children. 3. With reference to Department's 2485 of July 21, Haitian Legation in Bern was instructed on July 31 to request the Swiss to present to 108 - 3 - the German Government the following declaration of the Haitian Government: QUOTE Inasmuch as a certain number of individuals of the Jewish race naturalized as Haitians abroad in pursuance of the Decree-Law of May 29, 1979, were living in territories controlled by Germany and Italy; that they have been detained there continuously for reasons of force majeure since the declaration of war by the Republic of Haiti until this date, the Haitian Government declares: that the persons in the above-mentioned category have been unable to comply with the Decree-Law of February 4, 1942, enjoining, under penalty of the loss of Haitian nationality, all those who had 8.0m quired Haitian naturalization abroad to return to Haiti before August 5, 1942. Consequently, it is hereby made known to whom it may concern that the said persons are not affected by the Decree-Law of February 4, 1942. UNQUOTE In this connection, the Board's attention has been called to the test case of Mrs. Zelman Solowiejozyk, age 42, and Miss Sephora Solowiejczyk, age 7, whose last known address was Jacob Jacobs Street 37, Antwerp, Belgium, and who are the wife and daughter of Zelman Solowiejczyk, now residing in New York City. Under the foregoing declaration, these women, whose Haitian naturalization is said to have been promulgated in the Moniteur of Haiti on December 23, 1939, retain their Haitian nationality. Please take all ap- propriate action to insure that these women, if still in German hands, be treated as Haitian nationals. Consult with Haitian Minister if you deem it advisable. The Haitian Legation has also been instructed not to question at present the validity of Haitian passports held by persons who are now in occupied territories and who could be the object of persecution by the enemy until such persons arrive in a place of safety and to inform the Federal Department of these instructions. THIS IS WRB CABLE TO BERN NO. 164 9:20 p.m. September 9, 1944 Miss Chauncey (For the Sec'y), Abrahamson, Cohn, DuBois, Friedman, Hodel, Laughlin, Lesser, Mannon, McCormack, Cable Control Files. 109 Cable TO MINISTER HARRISON AND MCCLELLAND, BERN. SWITZERLAND Please deliver the following message from Vaad Hahatzala to Sternbuch, St. Gallen: QUOTE Please detail your rescue activities in Hungary and Slovakia to McClelland. Please also communicate to McClelland names and addresses of trusted leaders of rescue work in Hungary and Slevakia. It is hoped that this will enable these persons to obtain financial assistance for rescue activities through WRB. UNQUOTE The following is for McClelland from WRB: Upon receipt of names and addresses please cable them at once to WRB. THIS IS WRB CABLE TO BERN NO. 165 9:20 a.m. September 9, 1944 Miss Chauncey (For the Sec'y). Abrahamson, Cohn, DuBois, Friedman, Hodel, Laughlin, Lesser, Mannon, McCormack, Cable Control Files. BAksin:LSLesser:ar 9/7/44 110 CABLE TO HARRISON, BERN, FOR MCCLELLAND FROM DEPARTMENT AND WAR REFUGEE BOARD. Please report at once on Saly Mayer negetiations of September 4 and 5. For your information, Ambassader Nerweb has cabled that Hungarian Charge d'Affaires, Lisben, states he has received telegram from his Government dated September 3, substance of which is as follows: His Gevernment has no knowledge of and ne part in any cenversations which the Gestape with or without representatives of the Hungarian Jewish community is carrying on with any other persons private or official or with any allied body. All deportations from Hungary were stopped completely some weeks age and no incident cencerning Jews has occurred in Hungary since the beginning of August when an incident caused by an inferior Gestape agent was sharply complained about by the Hun- garian Gevernment. The government takes the position that it absolutely excludes any interference in Hungarian Jewish affairs by any Germany authority. THIS IS WRB CABLE TO BERN NO. 166 1:55 p.m. September 9, 1944 FH:lab 9/9/44 Regraded Unclassified 111 PARAPHRASE OF TELEGRAM RECEIVED FROM: American Legation, Bern TO: Secretary of State, Washington DATED: September 9, 1944 NUMBER: 5971 CONFIDENTIAL From McClelland for WRB. With reference to Department's message of September 7, No. 3091, the suggestions of the World Jewish Congress with regard to "camps" whose inclusion in 300,000 parcel program is urged by them will be discussed by me with ICRC unofficially. However, since at least nine-tenths of sites mentioned are quite inaccessible to ICRC (which would not be able to enforce even remotely the minimum necessary control as to allocation and reception of parcels); I cannot be very sanguine as to possible outcome. HARRISON DCR:GPW 9-11-44 112 DSH-634 Ankara This telegram must be paraphrased before being Dated September 9, 1944 communicated to anyone other than a Government Bec'd 6:52 p.m. Agency. (RESTRICTED) Secretary of State, Washington. 1695, September 9, 4 p.m. FROM AMBASSADOR STEINHARDT AND HIRSCHMANN TO WAR REFUGEE BOARD. Ankara's 152. It is reported here that a royal decree issued by the Government of Rumania restores equal rights to all Rumanians without regard to race or religion. We are informed further that all royal decrees based on differentiation of race or religion have been abolished. STEINHARDT EMB 113 Copy No NOT TO, BE RETRANSMITTED SECRET OPTEL No, 294 Information received up to 10 A.M. 9th September 1944. 1. NAVAL Home Waters 7th. Large convoys of coasters arrived DIEPPE. Mediterranean 5th. First liberty ships berthed at TOULON. During 6th and 7th. Britich ships shelled enemy poisition near RIMINI. 2. MILITARY N.W. Europe Operations of 3rd. U.S. Army hindered by lack of fuel and in 8 nsequence enemy have re- occupied NANCY and METZ. U.S. troops retain bridgehead in vicinity PONT A MOUSSON. First U.S. Army have occupied LIEGE and VERVIERS. Second British Army has widened and deepened bridgehead over ALBERT Canal. First Canadian Army have reached THIELT, ROULERS and DIXMUDE. Southern France French forces have reached within 22miles of Belfort. U.S. Forces are encountering some opposition in attacks on BESANCON while French Army operating further West are within three miles of BEAUNE. Italy Heavy fighting continues in ADRIATIC Sector. Little change in our forward positions and a number of enemy counter attacks repulsed. Burma In CHINDWIN area our troops have occupied SITTAUNG 20 miles E of TAMU. NORTH BURMA. Allied forces advancing S. from MYITKYINA have consolidated KHAZU, 20 miles S. of MYITKYINA and exploited eastwards as far as BURMA-CHINA border. In MOGAUNG area HOPIN, 33 miles S.W. of MOGAUNG has been reached. 3. AIR OPERATIONS Western Front 8th. Bomber Command dropped 516 tons on bargets at HAVRE with good results. E Escorted Allied bombers (20 missing) dropped 900 tons on Chemical Works LUDWIGSHAFEN, 527 tons on railway targets KARLSRUHE, 486 tons on diesel works near MAINTZ and 340 tons on ordnance depot MAINTZ; results good to excellent. Medium bombers dropped 97 tons on gun positions BOULOGNE area with fair to good results. Fighter bombers attacked road and railway transport in W. GERMANY destroying or damag ing 80 locomitives, over 170 wagons and ten aircraft on ground. 8th/9th. Sixty three Mosquitoes despatched, of which 45 attacked NUREMBERG, without loss. Yugoslavia 8th. Heavy bombers (three missing) dropped 518 tons on railway centres BROD, SARAJEVO and NIS, 220 tons on railway bridges BROD and SAVA. Results good to excellent. Mustangs (three missing) attacked ILANDZA, 35 miles N.E. BELGRADE destroying 36 enemy aircraft on ground. China 4th. 194 medium and fighter bombers (three missing) attacked military targets in HANYANG-LUNGLING area causing much damage and casualties to personnel and horses. Regraded Unclassified COPY NO 114 NOT TO BE RETRANSMITTED SECRET OPTEL No. 295 Information received up to 10 A.M. 10th September 1944. 1. MILITARY N.W. Europe U.S. troops of Ninth Army have made slight advances against BREST. U.S. Third Army has formed new bridgeheads across MOSELLE against moderataly strong opposition. Elements of U.S. First Army have reached MAASTRICHT. On the Second British Army Front more armoured units have crossed ALBERT CANAL. ANTWERP is completely in our hands. Troops of First Canadian Army are closing in on CALAIS, BOULOGNE, DUNKIRK and generally mopping up enemy in coastal belt. Southern France French troops continue to encounter stiff enemy resistance south of BELFORT. U.S. troops have captured BESANCON and advanced Northwards to a point approximately seven miles southwest of VESOUL. French forces have captured CEAUNE. Italy No change In our sition on ADRIATIC Coast where enemy cou er attacks have been driven back at several points. In West our patrols have reached southern outskirts of PISTOIA without opp sition. Russia Russians report progress north and northwest of SIBIU (100 miles northwest PLOESTI), a thrust to a point 60 miles southeast of RUSTCHUK and the capture of BURGAS. 2. NAVAL East Indies August 22nd. A British submarine torpedoed am probably sank 3,000 ton ship off PORT BLAIR. Anti-submarine operations 9th. A British Corvette made very promis-- ing attack on U-Boat off Northwest coast of IRELAND. Mediterranean 6th/7th. Coastal forces damaged an enemy minelayer off RIMINI. 7th/8th. Coastal forces sank an E-boat off the DALMATION Coast. Allied ships.on patrol off the south coast of FRANCE unsuccessfully attacked by explosive motor boats five of which were sunk and one probably sunk. 3. AIR OPERATIONS Western Front 9th. Escorted Heavies dropped 841 tons on MANNHEIM. 534 tons on DUSSELDORF, 515 tons on GUSTAVSBURG (near MAINZ). 183 tons on LUDWIGSHAFEN and 156 tons - on other targets. Pathfinder technique used in all cases. Medium and light bombers dropped 87 tons on strong points BOULOGNE. Fighters destroyed or damaged 98 locomotives, nearly 500 MT and other vehicles. 807 Dakotas and 5 Ansons carried supplies to NORTHERN FRANCE while 68 Fortresses dropped supplies in SOUTHERN FRANCE. Enemy casualties 17.3.9. for 23 Bombers, including 21 Heavies and 9 Fighters. 9th/10th. 228 aircraft despatched including 137 ton MUNCHEN GLADBACK. Attacks carried out visually without loss. Mediterranean 6th/7th. Bombers dropped 157 tons on railway centre SOLOGNA. 17 Wellingtons laid mines in DANUBE. 7th. Adverse weather prevented operations in ITALY. 93 aircraft attacked communications and other targets in YUGOSLAVIA and ALBANIA. 8th. Fighters bombers attacked bridges over PO, transport communications, and close support targets in Italian battle area. Also locomotives and MT in FRANCE. Liner REE attacked by eight Beaufighters at TRIESTE, reported listing and on fire. Burma 8th. 225 aircraft flew offensive sorties against railway and other targets with good results. Regraded Unclassified 115 CORRECTED COPY MS-198 Ankara This telegram must be paraphrased before being Dated September 10, 1944 communicated to anyohe other than a Government Rec'd 12:30 p.m., 12th agency. (RESTRICTED) Secretary of State, Washington. 1700, September 10, 6 p.m. FROM HIRSCHMANN TO WRB, ANKARA's No. 153. Reference is made to Ankara's 148. I have had further talks with Denenberg regarding the relief activities his committee in Turkey. He has now agreed that the expenditures which have thus far been made by him will be financed from other sources. He now proposes that the entire $5000 be transferred to & committee composed of scholars and former labor and pol- itical leaders from Central European and of the Bank of England now resident in Istanbul for administration under a relief program to be conducted on behalf of the IRRC. We have approved this project as the committee appears to be reliable and have 80 advised Denenberg. STEINHARDT WSB Regraded Unclassified 116 OFFICE OF FORVICTORY TREASURY DEPARTMENT BUY UNITED STATES WAR WASHINGTON 25 BONDS AND THE SECRETARY STAMPS September 11, 1944 MEMORANDUM TO THE SECRETARY I am attaching a memorandum prepared by Mr. Clayton's office for members of the Surplus War Property Policy Board. While it occupies a number of pages I believe it makes worthwhile reading. Assistant Secretary Attachment 117 OFFICE OF WAR MOBILIZATION SURPLUS WAR PROPERTY ADMINISTRATION OFFICE OF ADMINISTRATOR 011 VERMONT AVENUE NW. WASHINGTON 25, D. c. September 2, 1944 MEMORANDUM FOR MEMBERS OF SURPLUS WAR PROPERTY POLICY BOARD Subject: Monthly Status Report, July, 1944 The disposal agencies were requested, on August 4, 1944, to submit each month to SWPA certain statistics on the acquisition, disposition and inventories of surplus war property. Transmitted herewith for your information is a summary analysis of the data submitted thus far by the disposal agencies. This is a first attempt to summarize the status of surplus war prop- erty. We hope to improve the form and content of the analysis as more complete data become available and as the period of experience lengthens. Your comments and suggestions are invited. W. L. Clayton Administrator mosum 118 SURPLUS WAR PROPERTY ADMINISTRATION Monthly Status Report for July, 1944 Acquisitions, Dispositions and Inventories of Surplus War Property masko August 31, 1944 Washington, D. C. 0-7615 c 119 Acquisitions, Dispositions and Inventories of Surplus War Property Summary The status of surplus war property, according to reports submitted by five disposal agencies, may be summarized as follows for the period beginning May 15, 1944, when SWPA Regulation No. 1 became effective: July May 15 to 1944 Aug. 15. 1944 (Millions) Surpluses held by disposal agencies, beginning of period $150 $ 63 Property declared surplus by owning agencies 99 288 249 351 Disposed of by disposal agencies 16 38 Balance on hand, end of period 233 313 Thus far, SWPA has received statements on surplus war property from the following authorized disposal agencies: Procurement Division, Treasury Department Reconstruction Finance Corporation Maritime Commission Foreign Economic Administration War Food Administration Other agencies do not report to SWPA the surplus property which they themselves sell. Our present statistics therefore do not include certain quantities of surplus property, for example, contract termination inven- tories, and scrap and salvage disposed of by the so-called "owning agencies". 6-7615 p1 of 10 bu-cos-"P - 2 - Origin of surpluses. By the end of July more than 170 willion dollars of surplus, or 85 per cent of the total of 200 million dollars of property declared surplus to the five disposal agencies, was reported by the War Department alone. These surpluses consisted principally of aircraft and aircraft equipment (67 million dollars), motor vehicles (50 million dollars), medical supplies (21 million dollars), and radio tubes and parts (15 mil- lion dollars). The Navy Department made declarations of surplus amounting to 17 million dollars, or about 9 per cent of the total reported up to July 31. These consisted in large part of small craft, aircraft and parts, and a wide variety of materiel in small lots. Growth. Inventories, though still moderate in magnitude, are growing rapidly, having increased from 63 million dollars on May 15, 1944, to more than 313 million dollars on August 15, 1944.1 All disposal agencies con- tributed to the growth in inventories, although not proportionately. Inventories of RFC represented 66 per cent of the total at the beginning of June, and increased to 75 per cent at the end of July. In contrast, the share represented by the inventories of Procurement Division, Treasury Department, declined from 34 per cent to 24 per cent during the same interval, Rates of acquisition and disposal. Inventories of surplus property are growing rapidly, because surplus property reported to the disposal agencies in both June and July substan- tially exceeded the aggregate value of the property dispositions. Acqui- sitions of surplus property were about 97 million dollars in June and 99 million dollars in July, whereas dispositions amounted to only 14 million dollars and 16 million dollars in the corresponding months, 1/ The dollar value at which inventories of surplus property are reported is the original cost of the property, except for Procurement Division of Treasury Department, for which a part of the inventory ("confirmed inven- tories") represents the appraised value of the property. 2/ The term "acquisition" means the declaration or report of surplus prop- erty received by the disposal agencies. The property customarily remains in possession of the reporting owning agency. 6-7614 p2 bu Regraded Unclassified 120 - 3 - Because of the limited period covered by our data, we are not yet able to determine a wholly satisfactory indication of the rate at which the agencies are disposing of their surpluses, However, by comparing total dispositions during the month with beginning inventories plus ac- quisitions during the month, we obtain the following "rates of disposal" for July: Per cent Procurement Division, Treasury Department 16.9 Reconstruction Finance Corporation Aircraft and Related Equipment 1.4 Other Property 4.7 Maritime Commission 4.2 War Food Administration 0.6 Total, all disposal agencies 4.1 Clearly, at this early stage in the disposition of surplus war property, the "rates of disposal" shown above may not be significant inasmuch as wide variations may be expected to occur over a longer period and as between the different agencies. Nevertheless, the dif- ferences indicate that certain types of surplus property move much more rapidly than others. Certain types of items, for example, fighter planes and numerous other munitions, cannot be disposed of in their existing state and may require modification or even scrapping before disposal is possible. Realisations The proportion of cost (appraised value for Treasury-Procurement) being realized by sales is indicated by the following data for July: Cost of Per cent Agency Property Sales Realized (Thousands) Treasury Department, Procurement Division* $9,013 $7,617 84.5 Reconstruction Finance Corporation 4,976 4,130 83.0 Maritime Commission 60 28 46.6 War Food Administration 1 1 100,0 Total, disposal agencies $14,050 $11,776 83.8 *Confirmed inventory only. 6-7815 P3 bu - 4 - Current rates of realisation may be higher than it is possible to maintain, inasmuch as present sales probably consist of better quality items that are readily disposable. After sales have continued for a longer period, it is probable that a larger part of the undis- posed surpluses will consist of lower quality or less desirable items, which are likely to be sold at a smaller proportion of cost, SURPLUS WAR PROPERTY SUMMARY OF ACQUISITIONS, DISPOSITIONS AND INVENTORIES JUNE AND JULY 1944 MILLION TOTAL DOLLAR VALUES DOLLARS 233 MARITIME COMMISSION 220 PROCUREMENT DIVISION (fransit and old liquidation accounts included in July but excluded in June) 200 RECONSTRUCTION FINANCE CORPORATION 180 160 150 140 132 120 100 100 79 80 67 60 40 14 16 20 0 JUNE JULY JUNE JULY JUNE JULY JUNE JULY INVENTORIES ACQUISITIONS DISPOSITIONS INVENTORIES BEGINNING OF MONTH DURING MONTH DURING MONTH END OF MONTH SWPA - AUGUST 29, 1944 6-7615 P4 bu 121 - 5 - Activities of Principal Disposal Agencies Reconstruction Finance Corporation Inventories. On August 15, RFC had on hand 228 million dollars of surplus property, compared with 175 million dollars at the end of July, and only 44 million dollars at the end of May. Nearly 80 per cent of the balance on August 15 consisted of property declared surplus by other owning agencies. The largest single category of surplus consisted of airplanes, gliders and aircraft parts (149 million dollars on August 15). Other leading surpluses on August 15 were: Plants and miscellaneous real estate (21 million dollars), construction materials (18 million dollars), communications equipment (16 million dollars), and machine tools (4 million dollars). Dispositions. July dispositions totalled $4,976,000, the total reported cost of property sold, In the predominant categories of surplus property the disposals were not large, the principal during July being $1,665,000 of machine tools, $1,536,000 of airplanes, and $783,000 of construction materials, It is notable that 94 per cent of total disposi- tions in July consisted of RFC-owned surplus property, the small remainder (6%) being surplus declared to RFC by other agencies. Plants. Thus far, 17 industrial plants have actually been declared surplus, of which 5 were subsequently reclaimed by the owning agencies. One plant, producing altimeters at Binghamton, New York, which cost $239,500 has been sold for $175,000 (reproduction cost less depreciation). In the construction of the DPC plants unusually heavy costs were incurred, due to the necessity for speed, such as overtime pay, delays in obtaining materials, construction under unfavorable weather condi- tions, inability to get sufficient skilled labor, and similar causes, Additional costs will also be incurred in the way of depreciation and necessary alterations to prepare the plants for peace-time operations. The RFC will make allowance for these unusual items in setting prices on these plants. Detailed engineering surveys are being made of all DPC-owned plants to obtain the information required to determine their post-war potential- ities. Furthermore, detailed studies are being made of large individual plants to determine the possibilities of by-products, conversion to other 1/ Plants actually declared surplus are not to be confused with DPC-owned properties sold to lessees who choose to exercise their option included in the operating contract. 11 such plants, sold at a total price of 23 million dollars, have thus far been disposed of through the exercise of options, almost all of them on the basis of original cost to DPC. 0-7815 P5 bu - 6 - types of output, and the development of complementary plants. For example, RFC is studying the development of new methods for producing by-products at several magnesium plants and is also exploring the possibilities of converting some of the larger industrial plants into "multiple-use" facil- ities corresponding, for example, to Bush Terminal. 550 DPC plants have been canvassed by DPC engineers to arrange quick clearance when contracts are terminated and to discuss the possibilities of options being exercised and equipment in the plants being purchased, Machine Tools. The United States Government owns between 500,000 and 600,000 machine tools, the equivalent, it is estimated, of 25 years' normal pre-war production in the United States. 4,595 machine tools out of a total of 5,215 declared surplus up to August 15 have been disposed of. In order to make it easy for small concerns to buy machine tools, the RFC will sell tools for 15% cash down, the balance to be paid in monthly installments over a period of five years at 4% interest. There will be a limit of $100,000 on these terms to any one buyer. SWPA Regulation No. 3, August 9, 1944, which established the price policy for standard general-purpose machine tools, provides monthly schedules of depreciation rates to be applied to the original price of the manufacturer of the tool. The schedules provide a 5-point premium in price for tools sold to the lessee, compared with sales to others, inasmuch as the user of the tools knows their past maintenance and our- rent condition better than other prospective buyers. Aircraft. Aviation surpluses declared to RFC by the Army and Navy up to August 15 represent an aggregate cost of 145 million dollars. 8,234 aircraft and gliders are included, of which only one has been sold. The others are expected to go on sale shortly. In addition to military aircraft, 5,315 surplus training planes, owned by DPC and used in the War Training Service program of the Civil Aeronautics Administration, have been in process of disposition, 4,037 planes were sold up to August 15 at an average of 60 per cent of cost. Several programs of aircraft disposal have been launched, One being conducted at Vandalia, Ohio, with the cooperation of the Army Air Forces and the Civil Aeronautics Administration, is for the purpose of determin- ing if military aircraft likely to be declared surplus can be assigned civil licenses or can be used for specialised industrial or private use. The possibilities of disposing of surplus aircraft for ground training purposes are also being explored through an educational program involving more than 30,000 schools and colleges in the United States. 6-7815 P6 bu 122 - 7 - Procurement Division. Treasury Department. Inventories. Surpluses on hand August 15 totalled 75 million dollars, compared with 56 million dollars at the end of July and 23 million dollars at the end of May. More than one-half of the total inventory is composed of property in "transit account" which has not yet been appraised for dis- posal. Surpluses ready for disposal on August 15 totalled 33 million dollars (appraised value) and consisted of & wide variety of products, those exceeding 1 million dollars each, being motor vehicles, furniture and fixtures, leather, fabricated textile products (not including apparel), metal industry products, apparel (not including footwear), and fabricated metal basic products. Dispositions. Surplus property appraised at 11 million dollars was disposed of in July compared with 4 million dollars in June. Approximately 4,800 motor vehicles, appraised at $4,300,000, were on hand August 15. Thus far, more than 23,000 trucks have been declared to the Procurement Division, and 30,000 more surplus trucks are expected to be received soon. Generally, trucks are disposed of quickly after being inspected and listed for disposal. Dispositions of motor vehicles have been large compared with recent acquisitions; during July and the first half of August the Procurement Division acquired motor vehicles appraised at $3,883,000 whereas dispositions totalled $6,254,000. The Procurement Division of Treasury Department has placed surplus trucks on the market as quickly as possible because of the acute current demand, particularly on the part of farmers who need trucks to save their crops. The extent to which farmers have benefited by recent sales of sur- plus trucks is indicated by the attached letter from the War Food Admin- istration (see page 9). The distribution of trucks geographically has been made according to information obtained from the Office of Defense Transportation indicating those areas of the country most critically in need of truck transportation. Sales have been made in such areas through hundreds of dealers. For ex- ample, in the Boston region, 850 trucks were distributed through 125 dealers; in the New York region, 2,300 trucks went to more than 600 dealers; and in Texas, 2,041 trucks went to 500 dealers. An effort has been made to limit sales to not more than 5 trucks per dealer, although special circumstances sometimes have made it advisable to vary this. Sales thus far have averaged less than 2 trucks per dealer per month, Furniture and fixtures, consisting largely of used bed mattresses, have not been readily sold. Inventories had an appraised value of $2,990,000 on August 15 and during the preceding 45 days dispositions totalled only $360,000. 6-7615 PT be - 8 - Fabricated textile products (except apparel) on hand August 15 were valued at $2,270,000, and dispositions during the previous 45 days totalled $650,000. This category consists in large part of mosquito nets and bars, and comforters. Inventories of leather, composed principally of sheep shearlings declared surplus by Army Air Forces, were appraised at $2,320,000 on August 15. Dispositions totalled $845,000 in the previous 45 days, and it is expected that existing balances will be used by Foreign Economic Administration. It is also expected that Lend-Lease will account for a substantial part of the disposition of apparel (excluding footwear) which was valued at $2,100,000 on August 15 and consisted in large part of Army clothing. 6-7616 P8 bu 123 - 9 - a WAR FOOD ADMINISTRATION o P Office of Materials and Facilities y WASHINGTON August 22, 1944 Mr. William L. Clayton Administrator, Surplus War Property Administration 811 Vermont Avenue, N. W. Washington, D. C. Dear Mr. Clayton: At the request of Mr. Ernest L. Olrich, Assistant to the Secretary of the Treasury, I an sending you the following list of typical examples illustrating the efficiency and success of the surplus truck disposal program: Number of Surplus Description of Use Made 1 State Trucks Moved into Area of Surplus Trucks Texas 55 Saved 4 million bushels Milo Maize in southern Texas, 30 (approx,) Assisted movement of wheat harvest in Nusces County. Tennessee 100 Transport limestone to farmers for soil conservation. North Carolina 250 Move tobacco crop and trans- port limestone. Virginia 90 Forty trucks originally scheduled for sale in Maryland and Delaware diverted to Charlottesville, Virginia to save peach crop in area. Remainder sold to farmers. Georgia 35 To save peach crop in northern part of State. Colorado 25 (approx,) Assisted in movement of potato crop. As a result of the over-all program, approximately 7 thousand surplus trucks have been sold in the last 8 or 10 weeks to farmers or haulers of agricultural products in critical need of transportation facilities. Sincerely yours, /a/ J. W. MILLARD J. W. Millard Director 6-7815 P9 be 6-7615 pio bu-finel CHANGE IN INVENTORIES (a) TREASURY DEPT. OF SURPLUS WAR PROPERTY REPORTED BY DISPOSAL AGENCIES Month of PROCUREMENT DIVISION JULY 1944 1944 SEP 4 AM 10 51 (thousands of dollars) Proc.Div. Recon. Mari- Foreign War Other of Treas. Finance time Economic Food Disposal TOTAL Dept. (b) Corp. Comm. Admin. Admins, Agencies Month of July, 1944 1. Balance beginning of month 45,957 103,717 380 - 128 No 150,182 2. Acquired during month 21,663 76,487 1,046 2 28 99,226 3. Disposed of during month : . 11,418 4,976 60 - 1 reports 16,455 4. Net Increase during month ... 10,245 71,511 986 2 27 82,771 5. Balance end of month .... 56,202 175,228 1,366 2 155 re- 232,953 - ceived. ot 6. Rate of disposal-% 16.9 2.8 4.2 - .6 4.1 - 7. Sale Price 7,617(c) 4,130 28 none 1 none 11,776 8. Sale Price % of Cost (d) 84.5 83.0 46.6 100 83.8 (a) All amounts are cost of property reported by owning agencies, except that "Confirmed" inventory of Procurement Division is on basis of appraised values. (b) Includes "Transit" inventory (items awaiting appraisal) and "Old Accounts" (Liquidation of W.P.A. and N.Y.A. and F.P.U.B. warehouses in New York and Chicago). (c) Confirmed Inventory only, (d) Appraised salueWfor confirmed inventory of Procurement Division. NOISIAIO PROCUREMENT TREASURY DEPT. Regraded Unclassifie 124 PLAIN London Dated September 11, 1944 Rec'd 10:46 p.m. Secretary of State, Washington. 7455, Eleventh. Next meeting Executive Committee IGC October 5. Please reply Embassy's 7053, August 29. WINANT MRM 125 PARAPHRASE OF TELEGRAM RECEIVED FROM: American Embassy, Lenden TO: Secretary of State, Washington DATED: September 11, 1944 NUMBER: 7473 SECRET THE FOLLOWING PEHLE WRB FROM MANN. At the request of Maleg, Chief of Foreign Office's Refugee Department, Brown and I attended a meeting at his office this evening, at which meeting Sir Herbert Emerson was present also. Following is the substance of a cable received Saturday from British Minister in Bern which was read by Masent From the German Government it is understood by the Swiss Government that the Germans are not ready to permit a party of 2100 Jews to leave Hungary if they are to " to Palestine, as they do not wish to have the Arabs dis- turbed. However, they would view. their departure more faverably if the group were to have a destination in Ameri- can or British territory. Furthermore, it has been requested by the German Ministry of Fereign Affairs that the Swise Legation at Budspest should hand to the German Legation there a nominal list stating that on security grounds they cannet permit the departure of the group until an examination has been made for each individual case. 126 - 2 - The Government of Switzerland desires to know whether they should send to the Legation at Budapest instructions to this effect. No indication was given that information regarding this message had been given McClelland. Inasmuch as this German move rejects to offer to place Jews coming from Hungary in neutral and United Nations territory and substitutes in its place American or British territory exclud= ing Palestine, this move cuts at the very heart of the joint declaration of the British and American Governments. Although the composition of the 2100 people is unknown, the assumption is that they are principably holders of Palestine certificates and if the offer were accepted as made, it would place the British and American Governments in a position of invalidating, at least temporarily, Palestine certificates even if the condi- tion were accepted only while the war lasts. If we fail to accept the German conditions with concrete offer, it will put the Germans in a position to state that they would permit the Jews to leave but they would not be accepted by us. It is also possible that if we accept conditions in this case, they will be made applicable to all ethers who are trying to escape. The purpose of the German maneuver presumably is to embarras the Gyvernments of Great Britain and the United States. It is proposed by the British to give their Minister in 127 - 3 - Bern instructions to reply to the Swies Government somewhat Regraded Unclassifi as follows: We assume that the security check is for the pur- pose of expediting the departure of Jews and not delaying it. With that understanding, which should be emphasized by the Swiss, we have no objection to giving the Germans such a list if the Swies first make sure that such list will not be used by the Germans for the purpose of victimising the prospective evacuees. We assume that the list will show that Palestine certificates are held by the persons hamed thereon. There is no intention on the part of the British Government to take action which would make such certificates invalid. You are requested to ascertain from the Swiss whether they are prepared to give the group temporary haven with the maintenance guantees given pre- viously until such time as evacuation can be carried out. Should they be willing to do so, they should inform the Germans that they have agreed to give the 2100 refugees a temporary haven. The proposed reply obviously does not meet the conditions laid down by the Germans. The reply might stand some small chance of being successful. It is althgether possible, however, that the Germans would inquire as to the final destination of the Jews or that in the absence of a statement to the contrary, that British position with regard to Palestine certificates 128 would be taken for granted. In view of public and Jewish opinion, the British understandably feel that the validity of Palestine certificates must be preserved by them. Attempts have been made by Brown and me to determine what the possibilities were of removing the 2100 to British or Ameri- can soil from Switzerland. No suggestions could be obtained by us from Mason, who stated that he would have to consult with the Colonial Office to determine whether there is any available British soil. Therefore, it is safe to say that if the conditions laid down by the Germans were accepted even temporarily, British or American soil, spart from the other complications, means only American soil. We were continually asked by Sir Herbert if we were prepared to open more camps such as the one at Oswego. It is difficult to make recommendations until I know how far our Government is prepared to go in this matter. It is felt by me that the best solution to the problem would be to make an offer of the nature of that resulting in the Fort Ontario camp, making it clear that such refuge was for the dura- tion of the war only and that following the war these refugees might return to their own land or to a land of their own choosing which is willing to receive them. It appears doubtful that the 2100 could be evacuated before the termination of the war, but it is possible that such could be done. Furthermore, problems with the military might be raised by their evacuation through 129 -5- France. It is requested that you reply urgently, giving the views of the Department and the Board on the suggested reply or any alternative proposals which our Government might desire to present to the British. No reply will be made by them until receipt of your views. If the suggested reply is acceptable, the reply should not be transmitted until agreement has been reached by the two Governments regarding answer to be given if the Germans should insist on knowing the group's destination. The proposed reply by the British and their stand on Palestine certificates is agreed to by Emerson. It is felt by him to be most important that agreement be reached by the two Governe ments on all action to be taken before making any reply. It is requested that McClelland be instructed to reguat to me any important messages to the Board, and if the Board would repeat to me their replies, it would be greatly appreciated. WINANT DGR:IDB:FB 9/12/44 Regraded Unclassified 130 FBM-110 Caserta Distribution of true reading only by special Dated September 11, 1944 arrangement. (SECRET-W) Rec'd 1:55 a.m., 12th. Secretary of State, Washington. 355, September 11, 5 p.m. FOR WAR REFUGEE BOARD FROM ACKERMANN, NO. 109. I have always been cognizant of limitations on board's authority and activities noted in your 106 of September 7. However I approved of and confirmed message sent by Offie on September 3 since I knew of no organization in Rumania ready to act in emergency and felt that you would pass request on to one of the many private ogganizations you maintain contact with. UNRRA under its charter cannot go in the British American military have no plans therefor and it may be a long time before private organizations can enter. I still believe it is essential that telief be forwarded in some manner. The OSS says problem is too great for it to handle but perhaps JDC (repeat JDC) or other United States organization has a local representative to whome funds can be sent possibly through here or perhaps Turkey. KIRK WSB 131 PARAPHRASE OF THENGRAM RECEIVED FROM: American Legation, Tangier TO: Secretary of State, Vashington DATE: September 11. 1944 NUMBER: 284 CONFIDENTIAL Following is for Var Refugee Board. It is now stated w Reichmann that feed parcels cannot be sent for Hungary through France and Switzerland, but she is attempting to skip through the International Red Gress from Sweden. She will again attempt to send to Birkensu and Theresienstadt but is of the opinion that Jews have been deported from Sateral,jau,Jhily. The foregoing has reference to the Department's cable of August 31. No. 122. CHILDS Paraphrase: DCR:VAG:MXM 9/12/44 249/11/144 132 CABLE TO AMBASSADOR NORWEB AND DEXTER, LISBON, PORTUGAL Department and Board delighted with success reported in your 2594 of August 22. Please convey to Portuguese efficials this Government's appreciation. While the actual passage of Jews from Axis areas through Pertugal may perhaps be rendered unnecessary by military developments, neutral visas and permission for unobstructed exit of beneficiaries of such visas are still of great importance in safeguarding the lives of Jews in such areas. It is hoped, therefore, that Portuguese government will continue to press Hungarian and German authorities for decent treatment and unobstructed exit of beneficiaries of Portuguese visas. THIS IS WRB CABLE TO LISBON NO. 89 133 MB September 11, 1944 Distribution of true reading ofily by 9 p.m. special arrangement. (SECRET W) War Refugee Board AMEMBASSY LISBON 2491 The following for Dexter is WRB 89. Department and Board delighted with success reported in your 2594 of August 22. Please convey to Portuguese officials this Government's appreciation. While the acutal passage of Jews from Axis areas through Portugal may perhaps be rendered unnecessary by military developments, neutral visas and permission for unobstructed exit of beneficiaries of such visas are still of great importance in safeguarding the lives of Jews in such areas. It is hoped, therefore, that Portu- guese government will continue to press Hungarian and German authorities for decent treatment and unobstructed exit of beneficiaries of Portuguese visas. HULL (GLW) WRB:MMV:KG 9/11/44 # 2518 Sept.11.1944 134 CABLE TO AMEMBASSY, MADRID, SPAIN Reference is made to your 3044 of September 5. Department's 2331 to Lisbon dated August 24 was limited to rescue activities out of France and does not cover situation in areas still under German control. With regard to Department's 2361 of August 24 to you, while the actual passage of Jews from Hungary and other Axis areas through Spain may perhaps be rendered unnecessary by military developments, neutral visas and permission for unobstructed exit of beneficiaries of such visas are still of great importance in safeguarding the lives of Jews in such areas, and you are requested to continue your efforts in this respect, 135 MMC September 11, 1944 Distribution of true reading only by 9 p.m. special arrangement. (SECRET W) AMEMBASSY MADRID 2518 The following is from War Refugee Board. Reference is made to your 3044 of September 5. Department's 2331 to Lisbon dated August 24 was limited to resoue activities out of France and does not cover situation in areas still under German control. With regard to Department's 2361 of August 24 to you, while the actual passage of Jews from Hungary and other Axis areas through Spain may perhaps be rendered unnecessary by military developments, neutral visas and permission for unobstructed exit of beneficiaries of such visas are still of great importance in safeguarding the lives of Jews in such areas, and you are requested to continue your efforts in this respect. HULL (GLW) WRB:MMV:KG 9/11/44 136 ML September 11, 1944 Distribution of true reading only by 10 p.m. special arrangement. (SECRET W) War Refugee Board AMEMBASSY MADRID 2519 Department and War Refugee Board are advised that there are in camp Bergenbelsen near Hanover about 155 Sephardic Jews having Spanish passports whose entry into Spain has been promised by the Spanish Government and for whom, it is understood, exit permits are now available. In view of imminent danger to lives of these persons, you are requested to intercede with Spanish government to bring about their release and admission into Spain. Assurances previously given regarding speedy evacuation of refugees from Spanish territory fully apply to these persons. Should transportation be impossible in view of mili- tary developments, please urge Spanish Government to exercise greatest possible vigilance in safeguarding the lives of these persons, by placing them under direct pro- tection of Spanish diplomatic or consular personnel and by all other appropriate methods. HULL (GLW) WRB:MMV:KG WE 137 NMG-118 Stockholm Distribution of true reading only by Dated September 11, 1944 special arrangement (SECRET w) Rec'd 3:44 a.m., 12th. Secretary of State, Washington. 3564, September 11, 10 p.m. FOR WRB Our No. 79 Please advise whether it is likely that funds will be made available for program outlined in no. 35 (Legation's 2224 of June 20, 8 p.m.) Funds are needed particularly to commence educational program for refugees here. Also would appreciate advice whether assistance will be supplied to Czech group here as outlined in our no. 36 (Legation's 2239, June 21, 9 p.m.) The Czech group is seriously handicapped by lack of funds and if Board agrees Olsen is prepared to make available the small amount involved out of funds he has at his discretion. Also would appreciate early advice as to whether anything is contemplated with respect to Polish relief as outlined in our no. 48 and 55 (Legation's 2569 of Jully 11, 9 a.m. and 2668 of July 18, 9 p.m.) We are being pressed for decision of these matters particularly in view of the country wide drive on in Sweden this week in behalf of Polish relief which is receiving extensive publicity. JOHNSON RR 138 PARAPHRASE OF TELEGRAM SHINT FROM: Secretary of State, Washington TO, American Legation, Born DATED: September 11, 1946 NUMBER: 3141 SECRET with reference to Hicaraguan interests in Hungary, we give you below airgram of August 19, No. A-361 (see your cable of July 14. No. 4618) You are referred to circular airgram of August S, 1964 from the Department concerning representation by Switserland of Nicaraguan interests in !lungary. In a note dated August 17, 1944. L/Me. 189, the Foreign Office of Micaragua resognises the advisability of having representation in Hungary for Micaraguan interests, solects Switzerland as protecting power. and asks the United States Coverment to ascertain if the representation of Nicaraguan interests in Hungary will be assumed by Switzerland. In addition, the deverment of Micaragua asks that the Government of Switzerland be instructed in line with the suggestions contained in De- partment's reference airgram, in the event it accepts. The suggestions referred to above are as follows: Please ask the goverment to which you are ascredited to direct the protesting power substantially as noted below. in the event it aggees this 8 (1) That recognition and confirmation are assorded pase- ports and other papers issued in its - to individuals in Hungary subject to persecutions (2) that advice to this effect be given Hungarian deverment and that it is anticipated that the rights, treatment, insumities and privi- legon of nationals of the government to which you are assredited will be given to individuals helding such passports and other paperas and (5) that negotiations by the United States for the exchange of such individuals are authorised. will you ask the Goverment of Switzerland to assept representation of Micaraguan interests in Hungary, advising it of the above, and stating that, if se desired, the Goverment of the United States is willing to ast as communication channel? BULL SWP:ABC:00m Paraphrased: DCR:GHW 9/10/46 Regraded Unclassified 139 COPY NO NOT TO BE RE-TRANSMITTED SECRET OPTEL No 296 Information received up to 10 A.M. 11th September 1944. 1. NAVAL Home Waters 10th. A British Battleship and Monitor bombed enemy positions at HAVRE. 2. MILITARY Northwest Europe Troops of the U.S. third army have.made slight withdrawal in NANCY area. U.S. First Army have liberated LUXEMBOURG city and further north enemy salients have been reduced and line straightened. Considerable opposition is being encountered by British forces in BRUGES-GHENT- ST. NICOLAS area, Southern France On RIVIERA Coast, patrols in contact with enemy near FRANCO ITALIAN Frontier north of MENTONE. Further north French formations ahve made further advances in direction of DIJON and also occupied AUTUN (thirty miles northwest CHALON SUR SAONE). Italy In SANSIPOLORO-BIBBIENA sector enemy have withdrawn to Gothic Line, followed by Tenth Indian Division who have drive in outposts. Burma Continued advance southwards on IMPHAL TIDDIM Road, our troops were twenty miles south of ASSAM BURMA Frontier on ninth. At SITTAUNG we erossed CHINDWIN and are estab- lished on Eastern Bank. 3. AIR OPERATIONS Western Front 9th/10th 610 tons dropped on MUNCHEN GALDBACH and 55 tons on BRUNSWICK. 10th. Heavy bombers dropped 4885 tons in two attacks on HAVRE defences. Obtaining good concentrations and also a total of 2520 tons on objectives in Southern GERMANY generally with good reaults. Medium bombers dropped 185 tons on strongpoints and railway bridges near NANCY. Enemy casualties reported 6 aircraft destroyed in oombat and 113 on ground. 13 Allied bombers, 17 fighters missing, 1 bomber crashed. 10th/11th. 79 aircraft despatched including 47 Mosquitoes to BERLIN. All returned. Mediterranean 9th. 240 fighters attacked targets in, NORTHERN ITALY and in BYLFORT area. Medium bombers and R.P. Beaufighters operated against military targets and communications in YUGOSLAVIA and GREECE. 10th. Escorted Fortresses and Liberators dropped 730 tons on oil refineries.and industrial targets VIENNA area and 160 tons on port installations TRIESTE. 16 Bombers, two fighters missing. Regraded Unclassified SECRET > 140 THE WHITE HOUSE WASHINGTON 12 September 1944 MEMORANDUM FOR THE SECRETARY OF THE TREASURY The following message was received in the White House Map Room at 5:37 p.m. today: "FROM: THE PRESIDENT "TO : SECRETARY MORGENTHAU PLEASE BE IN QUEBEC BY THURSDAY, 14 SEPTEMBER, NOON. "ROOSEVELT" thenry W. Putuan HENRY W. PUTNAM, Captain, A.C., White House Map Room. SECRET - 1 - 141 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE TO Mrs. Klotz September 19, 1944 FROM Mr. O'Connell At the 10 o'clock group meeting this morning, the subject matter of the attached memorandum was discussed, and the Secretary approved the suggestion that we send a Foreign Funds Control man to Paris to look into the situation in the Chase Bank and in Morgans. No further action is required with regard to this matter at this time. ggee 142 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE SEP 12 1944 TO Secretary Morgenthau FROM J. J. O'Connell, Jr., H. D. White You will recall that sometime ago Foreign Funds Control reported to you that an examination of the correspondence between Ford, United States, and its French subsidiary, from the date of the fall of France until July 1942, disclosed that: (1) the business of the Ford subsidiaries in France substantially increased; (2) their production was solely for the benefit of the Germans and the countries under its occupation; (3) the Germans have "shown clearly their wish to protect the Ford interests" because of the attitude of strict neutrality maintained by Henry Ford and the late Edsel Ford; and (4) the increased activity of the French Ford subsidiaries on behalf of the Germans received the commendation of the Ford family in America. Substantially the same pattern of behavior was pursued by the Paris office of the Chase Bank during German occupation. An examination of the correspondence between Chase, New York, and Chase, France, from the date of the fall of France to May 1942, discloses that: (1) the manager of the Paris office appeased and col- laborated with the Germans to place the Chase banks in a "privileged position; II (2) the Germans held the Chase Bank in "very special esteem owing to the international activities of our (Chase) head office and the pleasant relations under which the Paris branch has been main- taining with many of their (German) banks and their (German) local organizations and higher officers; II (3) the Paris manager was "very vigorous in enforcing re- strictions against Jewish property, even going so far as to refuse to release funds belonging to Jews in anti- cipation that a decree with retroactive provisions pro- hibiting such release might be published in the near future by the occupying authorities; and (4) the New York office despite the above information, took no direct steps to remove the undesirable manager from the Paris office since it "might react against our (Chase) interests as we are dealing, not with a. theory, but with a situation = 143 - 2 - These two situations convince us that it is imperative to investigate immediately "on the spot" the activities of subsidiaries of at least some of the larger American firms which were operating in France during German occupation, particularly if we expect the French and the other Allied nations to adopt vigorous anti-collaborationist programs in their respective countries. Furthermore, even if the French conduct a vigorous "cleansing" program they will probably not investigate the American firms within their jurisdiction. It is urgent that we begin immediately with an investigation of the French subsidiaries of the American banks (Chase, Morgans, National City, Guaranty, Bankers, and the American Express), since these banks have been pressing us for the past two weeks for permission to send their own agents to Paris to reorganize their offices. It is our feeling that no such permission should be given until we have had a chance to make this investigation. The job should not take too long since it appears from the Chase correspondence referred to herein that Morgans and Chase were the only two American institutions which continued their Paris offices during German occupa- tion. If you approve, we have available four or five trained persons for the job. Their activities should be restricted to investigating the banks at the outset; and not until we have had a chance to evaluate the results of these studies should we tackle the job of investigating other American firms in France. I Approve: HDWhite 144 TO: Mr. White SEP 12 1944 Regraded FROM: Mr. Pehle I an somewhat troubled about the Treasury's program on Germany. As far as it goes I agree with it, but it seems to me it stops short of a complete program. Às nearly as I can put my finger on it, the missing element is this: No have carefully constructed a program designed to keep the German people down - to make Germany a second or third rate power politically and industrially - and there we stop. It seems to me that we cannot stop there. Since we do not subscribe to theories involving blood taint, we cannot ignore the problem of the millions of Germans who will be born in the next 15 years and who cannot be said to be guilty of any anti-social action. We cannot put ourselves in a position where someone can honestly think our program is based on retribution. Nor can we ignore the dangers of & situation in which an embittered German population deprived of its former goals and ambitions has nothing to contemplate for the future except complete frustration. There must be developed alternative goals as well as the prospect of rejoining the society of nations if Germany behaves and if the member nations consent. It seems to me that a program can be designed which Germany can follow - if she is so inclined - and which will let her live in peace and in some measure of prosperity. On this score our present program seems to me to be entirely negative. It should be augmented by a carefully constructed plan for the rehabilitation of Germany after she has been largely stripped of industry. This rehabilitation should take place over a long period of time and should be so designed as to avoid any possibility of Germany becoming so industrially and politically strong as to menace the peace of the world in the next 25 years. For example on the question of partitioning I think it might be very well to hold out the hope to Germany that, at the end of a 25-year period, with the permission of the World Security Organization and if approved by the majority of the German population in the various partitioned areas, these areas may again unite as one country. Further, I think it should be made clear that Germany has a chance, conditional on good behavior for 25 years and the vote of the members to join the WorMSecurity Organization. On the question of the feeding of the German population, if we are going to strip Germany of industry and accordingly the where-with-all to purchase from abroad, I think 10 might as well plan to use some of the food surpluses that apparently are going to plague the world to feed the German population until they can make the necessary adjustments toward a new economy. During this period of readjustment encouragement should be given to migration, particularly of skilled workers to other areas whose industries are being expanded, such as Poland, France, etc. 145 - 2 - As a further small example of what I have in mind, our program emphasises that the higher institutions of learning in Germany shall be closed and will have to remain closed for a long time. I agree with this, but I feel that our program should call for the reopening, as soon as possible, of the German medical schools so that the contribution which Germany has to offer in this field, which can be substantial, will not be lost to the world and Germany will be in a position to continue to be proud of the contribution which she is able to make. I also be- lieve that our program ought to make it clear that Germans who have not been thoroughly indoctrinated with the Maisi. philosophy because of their age will be encouraged and helped in continuing their education outside Germany until Germany schools can assume this burden. I an not impressed with the argument that it is dangerous to send Germans outside Germany for education since this will result in the spread of Nazi doctrines. As a final point, I an not convinced that it wouldn't be more advisable to leave the Ruhr area in Germany under an international trusteeship than to separate this area from Germany in an internation zone. I should think that such a trus- teeship ought to have definite limitations as to its responsibilities and that the feeding of the unemployed population be left to the German authorities. I should also add that I think we should avoid over-emphasising the point that Hitler and the other Nasi ringleaders are put to death. Any disproportionate insistence on this item is likely to be misunderstood and to make the reader feel that we think the punishment of selected war criminals is an all-important end in itself. To no this tends to emphasize the philosophy of those who are inclined to blame Germany's difficulties on a relatively small group instead of dealing with the whole problem of an entire people who through environment as well as temperament constitute a potential recurring menace. In short, I wonder whether without compromising at all on the objective of obtaining a permanently demilitarised Germany, we cannot follow through and sug- gest a program which will permit of some hope in Germany for a chance to partici- pate in the affairs of the world on a fair basis. 146 0 September 12, 1944 Mr. Frederick W. Gehle New York, New York Dear Mr. Gehle: You are hereby appointed Chairman of the War Finance Committee, State of New York, with compensation at the rate of $1.00 per annum, payable from the appropriation, "Expenses of Loans, Act of September 24, 1917, as Amended and Extended." This appointment is to be effective September 12, 1944, and con- tinue for the duration of the war, unless sooner terminated. Sincerely, (Signed) H. Morgenthau, Je. Secretary of the Treasury 147 OFFICE OF FORVICTORY TREASURY DEPARTMENT BUY UNITED STATES WAR WASHINGTON 25 BONDS AND THE SECRETARY STAMPS September 12, 1944 MEMORANDUM TO THE SECRETARY Some two months ago at a staff meeting in your office the statement was made to you by Mr. Thurman Hill that a contract had been made with the Cardinale Export Company for the sorting, packing and handling of certain shoes for European relief and rehabilitation at a price disadvantageous to the Treasury. On checking the contract I found that it permitted a renegotiation of cost after the contract had been operated for sufficient time for the contractor and ourselves to determine a fair cost. As a result of renegotiations which were permissible in the original contract, the cost of operation has been reduced by 58 percent. In other words, if we had been billed on the original basis the charge against us would have been $723,000; based on the amended contract the charge is $310,785, a saving to the Government of $412,255. Sufficient funds were withheld from the contractor by Mr. Mack to preclude overpayment and settlement will now be made with the contractor on the adjusted price as above stated. Assistant John Secretary 148 OFFICE OF FORVICTORY TREASURY DEPARTMENT BUY UNITED STATES WAR WASHINGTON 25 BONDS AND THE SECRETARY STAMPS September 12, 1944 MEMORANDUM TO THE SECRETARY I am enclosing a list of the special 1tems valued in excess of $50,000 as of September 11, 1944. E. Eleurich Assistant to the Secretary Enclosures PROPERTY FOR DISPOSAL SPECIAL ITEMS, COST TO GOVERNMENT IN EXCESS OF $50,000 AS OF SEPTEMBER 11, 1944 QUANTITY UNIT COST COST TO GOVT. 1. Automotive Products TIRES AND TUBES, NEW AND USED 60,298 units are being assigned as an additional issue to the prior releases made to manufactures on Aug. 14th. Balance are miscellaneous assortment of new and obsolete tires which will require physical segregation before definite assignment can be made - some tires are from 10 to 15 years old, and are odd sizes. 80 000 587 000 AUTOMOTIVE PARTS, NEW Recent declarations of parts in varying quantities in many locations. As distinct from previous declarations these parts are new, small parts; not ob- solete and used bodies, tanks, etc., such as we have had before. Clerical and inspection personnel lacking to handle large quantities of paper and material. 6 700 000 6 300 000 149 Regraded Unclassifie Page 2 QUANTITY UNIT COST COST TO GOVT. SPARE PARTS, AUTOMOBILE, NEW AND USED 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. 2 000 000 DISC WHEELS FOR GUN CARRIAGES We have authorized release of 477 at $13.75 each. We have authorized the sale of 4967 at $10 each and are arranging to sell 300 at $10. 8 800 $ 28 246 400 : : 150 Regraded Unclassifi Page 3 : QUANTITY UNIT COST COST TO GOVT. 2. Textiles and- Wearing Apparel All textiles and clothing in the hands of disposal agencies have been temporarily frozen to enable the Army to make selections for use in a program for occupied countries. : W.A.C. CAPS No interest can be aroused anywhere. 76 712 $ 2 20 168 766 GLOVES, RUBBER, ANTI-GAS Gauntlet type. We have been advised unofficially by Army that they are withdrawing this item. 742 000 1 00 742 000 HATS, ARMY SERVICE The old-style, broad brimmed campaign hat. Of original amount of 91,000, half have been sold. Negotiations in process for balance. 45 928 3 00 137 784 ... 151 Regraded Unclassifi Page 4 QUANTITY UNIT COST COST TO GOVT. MOSQUITO BARS, WITH RODS Rectangular tents of mosquito netting. About 300,000 reported as new turned out to be used and patched. Export deal for used items is being worked on. If successful, this will take care of 50% of the lot. Domestic sales at $1.50 are continuing in small lots. 669 000 $ 5 90 3 947 100 BELT POCKET FOR CARTRIDGE CLIPS Web pocket with fastener. Radio advertiser is taking quantities under option as requests from program develop. Price received $0.06 1 000 000 10 100 000 MAGAZINE BELTS Samples received - very little interest shown. 55 369 130 325 APRONS, IMPERMIABLE Rubber coated apron, with sleeves, designed like an operating gown. Has very little use, except to cut up to salvage the material. Sample has been received and shown to possible purchasers 79 449 5 00 174 800 152 Regraded Unclassifie Page 5 QUANTITY UNIT COST COST TO GOVT. : SLIDE FASTENERS : Manufacturers will probably repurchase at cost price. Inventories have been received and have been distributed to original manufacturers. 8 500 000 $ 0 19 1 615 000 LEGGINGS ... World War I stock, good only for salvage. Now being authorized for sale by Regions. 213 280 109 833 pr 3. Machinery CONSTRUCTION MACHINERY, HEAVY General inventory of used machinery, most of it in very poor condition. Sales are being made regularly but inventory mounts. 4 809 1 000 4 809 000 (average) ICE GROUSERS, NEW 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 is no known application on standard machines; no market, except for scrap. 76 726 2 70 207 160 pieces 153 Regraded Unclassifie Page 6 QUANTITY UNIT COST COST TO GOVT. GROUSERS Reported a8 new grousers for tractors, i.e. shoes to be bolted to the flat tracks of crawler tractors. Inspection proved that they were simply short pieces of mild steel (structural) angle iron with punched holes. They were made as an improvisation for use in the soft going in Burma but were impractical. 43 853 $ 3 00 131 559 4. Furniture PILLOWS, NEW AND USED Some cotton, some feather, some mixed. 120,144 new, 650,800 used. 770 944 73 562 781 MATTRESSES, NEW AND USED 227 new; 593,827 used. Used mattresses are sold only to salvage the materials. An appreciable quantity of used mattresses have been sold and will be used in the manufacture of paper. 821 427 550 4 517 848 154 Regraded Unclassifie Page 7 QUANTITY UNIT COST COST TO GOVT. BED PARTS Springs, heads, feet, and side rails; un- assembled. Negotiating with bed mfrs. regarding repurchase. 65 000 5. Hardware CHINAWARE Vitrified china with Medical Corps insignia. One-third of original quantity has been sold, or withdrawn by Army. Other government agencies and tax-supported agencies show interest. Sales will be started within a week. 1 OOO 000 $ 0 17 170 000 : SPURS, NEW AND USED Publicity release is being prepared for issue this week, as purchases for use as novelty give-a-way by radio advertiser are relatively small. 261 000 1 40 365 400 pr. average ... 155 Regraded Unclassi Page 8 QUANTITY UNIT PRICE COST TO GOVT. IMPRINTING MACHINES, NEW An Addressograph-plate press, portable, designed for Army Medical Corps identification purposes. Original manufacturer is developing a proposal for our consideration in regard to re-purchase. 52 636 $ 21 95 1 052 720 ... SCABBARDS, BOLO ...... : Obsolete item. No quantity of bolos avail- able - a short, curved, heavy blade-knife. Many inquiries have come from department stores as a result of publicity. 114 290 1 60 190 864 MARKERS, MINE FIELD Web fabric carrying case containing 30 metal pins (18 inch) with 4" X 4" metal flag marked "Danger". Pocket contains 2 rolls of narrow, yellow tape. Bureau of Mines is examining kits to determine possible use. We are also contacting state highway commissions. 11 378 6 85 77 937 sets 156 Regraded Unclassifi Page 9 QUANTITY UNIT COST COST TO GOVT. : RAFTS, PNEUMATIC, 5 MAN As of Aug. 31 Fort Worth had sold 93 out of 176 on hand, and reports response is good. San Francisco reports 35 units sold. Chicago reports that sales have been hurt by offerings of similar rafts for $69.50 retail (with 3 pieces of equipment) by a large department store - these are supposed to be "rejects" sold by Goodyear. This Division will hold to established price of $84.50 (to wholesalers) and $99.50 (to retailers). 2 000 $ 2 00 400 000 SNOWSHOES, USED Serviceable, trail and bear paw type snowshoes. Inspection report awaited. 11 745 9 00 105 654 SNOWSHOES, EMERGENCY Paratroopers' special type, of no value for sport purposes. We have offer for 1000 pr. at $1.00 each. Sears Roebuck offer for lot at 50¢ a pair was turned down. 22 837 4 25 96 915 pr. 157 Regraded Unclass Page 10 QUANTITY UNIT COST COST TO DVT. COVERS AND SEALS, RUBBER Includes 3/4 ton seals, which are round rubber washers about 1 inch in diameter. There are 27 tons of new "covers" which are 2 in. lengths of black rubber hose - thin wall, about 1 inch in diameter. 27 3/4 169 245 tons HOSE, RUBBER, USED, 25 FT. 27,840 lengths hose, 2 inch and 2 inch inside diameter, plus 312,000 short lengths ranging from 2 inches long to 4 feet - most- ly pieces a few inches long. We are contact- ing Rubber Manufacturers Ass'n members for possible outlet. 27 840 984 893 plus short lengths PLATFORM TRUCKS, STEEL, NEW Steel trucks on casters, designed to move airplane engines undergoing repairs. Bids are in at several regions and sales are being made. 13 287 $ 75 996 525 158 Regraded Unclassifie Page 11 QUANTITY UNIT COST COST TO GOVT. LANTERNS, OIL BURNING Reported as "deck" lanterns by Navy, but are similar to typical farmer's or railroad lantern, with carrying bail - red globes. We are attempting to get Army Ordnance to use these in place of some they have on order. 34 460 $ 3 00 107 316 SMOKE GENERATOR PARTS (VEHICULAR) Small metal parts (valves, fittings). Many are special and new uses will have to be found. A large chain expresses interest in the entire quantity and will examine material tomorrow. Bids due today. 277 000 SMOKE GENERATORS 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. National publicity has been released in effort to stir up interest in this "jonah". 67 600 3 50 236 600 159 Regraded Unclassifie Page 12 QUANTITY UNIT COST COST TO GOVT. WOOD SCREWS, BRASS, NEW Only 4 bids received - none for complete lot. All rejected and screw industry is being circularized again at its own request. Results of this circularization have been 300 tons requested from regional office. 1 634 items 357 000 BOLTS, MISCELLANEOUS All sizes and kinds. We have "frozen" individual items where large quantities of one size or kind, if thrown on market, would disrupt the industry. When tabulations are complete foreign purchasers will be contacted with view of exporting some items. Smaller quantities will be put up for domestic sale. 8 103 482 2 053 399 SIRENS, NEW ... Hand warning device for combat use. In canvas case with shoulder strap. Have had offer of $2.00 each - refused because too low. 28 638 6 00 174 569 approx. 160 Regraded Unclassifie Page 13 QUANTITY UNIT COST COST TO GOVT. INCINERATORS, NEW Designed for human excretia but can be used for burning lower-water content material by remodeling at cost of $1000 each. News re- lease has brought in several offers which were considered too low. We have representative today in manufacturer's office attempting to effect disposal. 34 $ 9 818 333 812 6. Medical and Hospital Supplies SURGICAL & DENTAL INSTRUMENTS, MEDICINES & SUPPLIES : 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. Disposal policy for non- standard items is being formulated. 1 846 000 MEDICINES AND ANTISEPTICS This listing covers many declarations recently declared by Army. It is made up of various preparations of highly technical nature, in great quantities. All are on new declarations. Samples are being obtained. Will be tested to determine quality. 5 800 000 161 Regraded Unclassifi Page 14 QUANTITY UNIT COST COST TO GOVT: DRESSINGS, FIRST AID PKGS. Samples awaited. About 1,600,000 are known to be a commercial product. Regions have been advised to arrange for withdrawal of all material that may be of : Red Cross manufacture. 34 000 000 4 000 000 SUTURES, SILK AND CATGUT For sewing after surgical operations. All government hospital agencies and the Red Cross have been advised of availability. Government: agencies not interested. Will be offered to original manufacturers. 11 611 000 1 960 000 tubes FLASK, WITH CUP : : : Laboratory equipment. Samples awaited. 200 000 33 66 000 PETRI DISHES, WITH COVER : Laboratory dish for making germ cultures. Sample awaited. 230 000 27 62 100 162 Regraded Unclass Page 15 QUANTITY UNIT COST COST TO GOVT. : TEST TUBES, GLASS Samples awaited 4 670 000 $ 0 03 140 100 STERILIZERS, NEW AND USED Considered unsafe for medical department use by Army. Negotiations with manufacturer in process. 1 381 300 (av.) 495 037 BANDAGES, MUSLIN : : Samples have not yet arrived. 134 584 128 034 doz. BOXES, TABLET 500 boxes in a carton. Believed to be World War I stock. Samples awaited. 320 000 40 128 000 cartons FLOSS, SILK Samples awaited. 510 000 173 400 spools : 163 Regraded Unclassifie Page 16 QUANTITY UNIT COST COST TO GOVT. 7. General Products CAMERAS, AIRCRAFT Each camera has great variety of collateral equipment. Obsolete type. Physical inspection being made. Informal negotiations with Fairchild Camera Co. in process. 96 307 386 BATTERIES, DRY CELLS AND PACKS Overage for Army use. New declarations come in and sales are reported regularly. 150 000 CRATES, WOOD, USED Have been used for packing guns. Awaiting inspection and appraisal report. 129 540 $ 1 50 220 319 AMMUNITION BOXES, NEW, METAL Hinged metal boxes for carrying small arms ammunition into combat. We have prospective purchaser for entire quantity for over-counter sale as utility box. 103 373 55 56 855 Sold 9/12/44 164 Regraded Unclassifie Page 17 QUANTITY UNIT COST COST TO GOVT. DRUMS, 55 GALLON, USED : 130,000 declared by Army cannot be located physically. Scathered throughout country. Survey being made on condition of drums. 54 000 $ 2 50 135 000 GASOLINE CANS, 5 GALLON One million are "Jerricans" made after German modél with spout that farmers like better than our regular Blitz can. 1 600 000 2 00 3 200 000 8. Paper, and Office Equipment PAPER, FILTER Special filter paper made for wrapping the cannister in a gas mask. In narrow rolls (5) and 6½" wide) Tearing strength practically nil. Paper is very absorbent. Disintegrates in contact with water. Cannot be used as pulp. Very poor chance of reconversion to other uses. 51 835 : : : Total 53 622 271 165 : Regraded Unclassifie : SURPLUS MOTORCYCLE REPORT For 7 Days and Period Ended, Sept. 9, 1944 (Period Began January 1, 1944) 7 Days to Sept. 9, 1944 Period to Date Total Motorcycles Declared 3240 12008 Less Declarations withdrawn 4 Less Loans to Other Federal Agencies O 101-1 7 O Less Transfers to Other Federal Agencies 10 4 210 217 Net Motorcycles Declared for Sale 3236 11791 Less Motorcycles Sold 184 5324 Balance of Motorcycles on hand 6467 ANALYSIS OF INVENTORY Inspected and ready for sale 1433 Not Inspected 5034 : ANALYSIS OF DISPOSAL ACTIVITY INVENTORY INVENTORY DECLARATIONS DISPOSALS END OF PERIOD CHANGE Period Ending July 1st 4518 4102 416 4 Weeks Ending July 28th 1126 636 906 ± 490 4 Weeks Ending Aug. 26th 1938 577 2267 +1361 7 Days Ending Sept. 2nd 1186 38 3415 +1148 7 Days Ending Sept. 9th 3240 188 6467 +3052 166 Regraded Unclassifie SURPLUS USED I CKS REPORT For 7 Days and Period Ended, Sept. 9, 1944 (Period Began January 1, 1944) 7 Days to Sept. 9, 1944 Period to Date Total Used Trucks Declared 7137 34631 Less Declarations withdrawn 30 1009 Less Loans to Other Federal Agencies 0 145 Less Transfers to Other Federal Agencies 12 42 2836 3990 Net Used Trucks Declared for Sales 7095 30641 Less Used Trucks Sold : 662 17945 Balance of Used Trucks on hand 12696 ANALYSIS OF INVENTORY Inspected and ready for sale 3440 Not Inspected 9256 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 7 Days Ending Sept. 2nd 3568 556 6263 ± 3012 7 Days Ending Sept. 9th 7137 704 12696 ± 6433 167 Regraded Unclassifi SURPLUS USED CA 3 REPORT For 7 Days and Period Ended Sept. 9, 1944 (Period Began January 1, 1944) 7 Days to Sept. 9, 1944 Period to Date Total Used Cars Declared 2598 6603 Less Declarations withdrawn is 105 Less Loans to Other Federal Agencies 19 Less Transfers to Other Federal Agencies 2 557 681 Net Used Cars Declared for Sale 2596 5922 Less Used Cars Sold 108 2502 Balance of Used Cars on hand 3420 ANALYSIS OF INVENTORY Inspected and ready for sale 462 Not Inspected 2958 ANALYSIS OF DISPOSAL ACTIVITY Inventory Inventory Declarations Disposals End of Period Change Period Ending July 1st 2864 2013 851 4 Weeks Ending July 29th 624 610 865 ± 14 4 Weeks Ending Aug. 26th 284 363 786 - 79 7 Days Ending Sept. 2nd 233 87 932 ± 146 7 Days Ending Sept. 9th 2598 110 3420 I 2488 168 Regraded Unclassi 169 PORVICTORY TREASURY DEPARTMENT BUY UNITED STATES WAR BONDS PROCUREMENT DIVISION AND STAMPS WASHINGTON 25 OFFICE OF THE DIRECTOR September 12, 1944 SECRET TO THE SECRETARY: There is submitted herewith the weekly report of Lend-Lease purchases. Requisitions have been received for 4,500 Farm Type Tractors and 4,000 tons of Binder Twine for agricultural purposes in the U.S.S.R. month Clifton E. Mack Director of Procurement no Attachment SECRET LEND-LEASE TREASURY DEPARTMENT, PROCUREMENT DIVISION STATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND DELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS SECRET AS OF SEPTEMBER 6, 1944 (In Millions of Dollars) Administrative Miscellaneous & Total U. K. Russia China Expenses Undistributed Allocations $5522.1 $2627.1 $2257.3 $133.9 $15.9 $487.9 (5522.0) (2627.0) (2257.3) (133.9) (15.9) (487.9) Requisitions $ 154.2 $ 28.2 $ 55.4 $ 2.4 - $ 68.2 in Purchase ( 176.5) ( 63.1) ( 40.2) ( 2.3) - ( 70.9) Requisitions not $ 102.3 $ 32.8 $ 62.4 $ .2 - $ 7.4 Cleared by W.P.B. ( 109.7) ( 26.8) ( 73.2) ( .1) - ( 9.6) Obligations $3974.8 $1975.2 $1633.0 $ 62.5 $13.9 $290.2 (Purchases) (3955.1) (1971.8) (1621.4) ( 62.5) (13.4) (286.0) Deliveries to Foreign $2358.7 $1442.9 $ 840.7 $ 24.5 - $ 50.6 Governments at U. S. (2327.7) (1429.4) ( 823.3) ( 24.5) - ( 50.5) 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 30, 1944. 170 Regraded Unclassifie 171 SLYICTORY BUY EXECUTIVE OFFICE OF THE PRESIDENT - STATES WAR BONDS WAR REFUGEE BOARD ARE STANPE WASHINGTON 25, D.C. OFFICE OF THE EXECUTIVE DIRECTOR SEP 12 1944 My dear Mr. Secretary: I am pleased to send you herewith a copy of the report of the War Refugee Board for the week of August 28 to September 2, 1944. Very truly yours, Pehle Executive Director The Honorable, The Secretary of the Treasury. Enclosure. 172 Report of the War Refugee Board for the week of August 28 to September 2, 1944 SITUATION IN HUNGARY Despite the broad measures which have been taken to effectuate the declaration of the United States and British Governments with respect to the Hungarian offer, we have as yet received no indication that Jews are actually emigrating or escaping from Hungary, except in small clandestine movements. From reports received from the Board's representatives in Bern and Ankara, there is an evident tendency on the part of the Hungarian Government to "relax on its laurels, while passively submitting to German pressure for further deportations of Jews, including Hungarian nationals. McClelland and Hirschmann recommended sustained pressure on the Hungarian Government in broadcasts and Hungarian-language pamphlets, repeating warnings of punishment for those who share the German guilt by participation or acquiescence, and appeals to Hungarians "of good will" to oppose Jewish persecutions. McClelland advised us that the International Red Cross feels that a proposal which would evade German disapproval of emigration to Palestine based on their alleged wish not to jeopardize their good relations with the Arabian Mufti might have a better chance of success than present offers. The International Red Cross has accordingly recommended that this Government, in concert with the British, indicate to the Government of Hungary its willingness to transport to some specified haven of refuge in Allied territory a. certain number of Hungarian Jews whose removal is not based on possession of Palestine certificates and who do not plan to go to Palestine. It was McClelland's opinion that the proposal has sufficient merit to justify a trial. The Venezuelan Government has authorized its Legation in Lisbon to visa the passports of Jewish refugees, especially children, who are travelling to the American continent, even though such persons may not be proceeding to Venezuelan territory. We advised Board Representative Dexter of this action and requested him to consult the Venezuelan Legation and the Portuguese authorities with a view to inducing the latter to grant large numbers of transit visas to Jews in Hungary and other German- controlled territories. 172 Report of the War Refugee Board for the week of August 28 to September 2, 1944 SITUATION IN HUNGARY Despite the broad measures which have been taken to effectuate the declaration of the United States and British Governments with respect to the Hungarian offer, we have as yet received no indication that Jews are actually emigrating or escaping from Hungary, except in small clandestine movements. From reports received from the Board's representatives in Bern and Ankara, there is an evident tendency on the part of the Hungarian Government to "relax on its laurels, while passively submitting to German pressure for further deportations of Jews, including Hungarian nationals. McClelland and Hirschmann recommended sustained pressure on the Hungarian Government in broadcasts and Hungarian-language pamphlets, repeating warnings of punishment for those who share the German guilt by participation or acquiescence, and appeals to Hungarians "of good will" to oppose Jewish persecutions. McClelland advised us that the International Red Cross feels that a proposal which would evade German disapproval of emigration to Palestine based on their alleged wish not to jeopardize their good relations with the Arabian Mufti might have a better chance of success than present offers. The International Red Cross has accordingly recommended that this Government, in concert with the British, indicate to the Government of Hungary its willingness to transport to some specified haven of refuge in Allied territory a certain number of Hungarian Jews whose removal is not based on possession of Palestine certificates and who do not plan to go to Palestine. It was McClelland's opinion that the proposal has sufficient merit. to Justify a trial. The Venezuelan Government has authorized its Legation in Lisbon to visa the passports of Jewish refugees, especially children, who are travelling to the American continent, even though such persons may not be proceeding to Venezuelan territory. We advised Board Representative Dexter of this action and requested him to consult the Venezuelan Legation and the Portuguese authorities with a view to inducing the latter to grant large numbers of transit visas to Jews in Hungary and other German- controlled territories. 173 - 2 - Reports on Conditions in Hungary The Hungarian Foreign Ministry, in submitting supplemental information to the Swiss Legation in Budapest concerning the treatment of Jews in Hungary, differentiated between "Shutzhaft" and internment by stating that Jews claiming foreign nationality are detained under "Shutzhaft" in their own interest, because Hungarian authorities are unable to guarantee their security without assembling them under police control. It was further stated that, as contrasted with conditions of internment, Jews placed under "Shutzhaft" are permitted to leave the place of detention unaccompanied by police when it is necessary for them to attend to private or professional affairs. Those having the means to do so are allowed to buy foodstuffs, but since no ration cards are issued to them, such purchases must be made on the black market. Those without resources are cared for by the Jewish Council. The persons detained under "Shutzhaft" are lodged in two vast premises, one for men and one for women, at 8. deaf and dumb institute at Festetich-Utca in Budapest. Sleeping accommodations consist of matresses and bedding, some placed on iron frames, some on the floor. In a recent inspection by a Swiss Legation representative and the International Red Cross delegate, sanitary installations were found to be insufficient in number and poorly cared for and the subsistence provided by the Jewish Council was found to be inadequate, especially for children, who receive no milk. The Red Cross delegate stated that, although the inmates are permitted to leave the premises for exercise in the courts, he regarded the conditions there as the worst he had encountered recently among European civilian internees. He and the Swiss Legation representative agreed that it is impossible to distinguish between "Shutzhaft" and internment except for the freedom to leave the premises in the case of the former. The situation was believed to be due to the attitude of the authorities and local functionaries, who are so convinced that conditions at Festetich-Utca are excellent compared with other Hungarian camps that it is difficult to persuade them to take steps to improve the situation. The Red Cross and the Swiss Legation are, nevertheless, making every effort to alleviate these conditions. Included among the persons detained under "Shutzhaft" are seven American citizens entitled to protection, and thirty persons affected by "rules," as well as alien relatives of American citizens. It was also reported that a number of American citizens who were released from ghettos in the pro- vinces following intervention by the Swiss Legation are now held in local prisons but must be transferred to Budapest shortly. 174 - 3 - Arrangements have been made by the Red Cross delegate to deliver parcels of food weekly to all internees having rights to Swiss protection. Visas for Refugee Children Our Embassy in Managua advised us that the Nicaraguan Foreign Office has no objection to the 100 Nicaraguan visas authorized for refugee children being issued to either Hungarian or French children. We advised Minister Harrison and Representative McClelland of similar recently reported action by the Irish and Honduran Governments and suggested that the information be submitted to Hungarian authorities through official Swiss or International Red Cross channels, if he believed it would be helpful. SITUATION IN BULGARIA Board Representative Hirschmann advised us of a report received on reliable authority that the Bulgarian Anti-Jewish laws have been set aside by a decree of the Regents. Effective as of August 28, 1944, all Jews may practice any profession and may circulate as freely as the rest of the population. Since the Bulgarian Parliament had originally passed the decrees, it was expected that they would be confirmed pro forma when the new Parliament meets. A Commission has been appointed in the Ministry of Finance to study the property question with the view of restoration of property to original owners, insofar as that is possible. FOOD PARCELS PROGRAM Representative McClelland reported that the International Red Cross has begun aking into 21 kilo parcels 50 tons of salvaged "Christina" cargo, It expects to forward the first shipment of approximately 11,000 parcels within two weeks to civilian internees in camps in Hamburg, Natzweiler, Ravensbrueck, Dachau, Sachsenhausen, Buchenwald, and the Mauthausen penetentiary. EVACUATIONS THROUGH TURKEY Ambassador Steinhardt advised us that, in addition to all other refugees reported as having transited Turkey en route to Palestine, approximately 800 Jewish refugees from Greece and the Greek Islands bound for Palestine have entered Turkey during the past few months through small ports on the Aegean without Turkish visas or other documents. While not formally consenting to the movement, the Turkish authorities have, nevertheless, assisted in the prompt transportation of these refugees to Palestine. 175 - 4 EVACUATIONS TO SOUTHERN ITALY Following its request for information as to what accommodations might be found in liberated Italy for refugees from Northern Italy, the British Foreign Office received a report from Sir Noel Charles, the British High Commissioner in Rome, indicating that an additional 5,000 refugees could be accommo- dated. The report also suggested the use of North African camps. While it is the understanding of the Foreign Office that there are considerably more than 5,000 refugees north of the battle line, it believes that the military situation is changing 80 rapidly that the problem of accommodating the additional 5,000 will not arise. It therefore feels that assurance of accommodation without numerical limitation can safely be given. Sir Noel 1s being instructed to ascertain whether the Pope has made an appeal to the German authorities to permit the rescue of these people. If not, he is to request the Pope to do so, with assurance that the persons rescued will be received and cared for by Allied authorities; if an appeal has been made, Sir Noel is to suggest that this assurance be repeated by the Pope. We cabled this information to Myron Taylor and requested that he join with his British colleague in taking the steps indicated. At the same time we advised Board Representative Ackermann and Ambassador Winant of our action and requested the latter to inform the British Foreign Office accordingly. RECOGNITION OF LATIN-AMERICAN PASSPORTS Our Embassies in La Paz and Asuncion were advised of a report which we had received from our Embassy in Madrid to the effect that the Spanish Government has not yet received representations from the Governments of Bolivia and Paraguay with respect to the proposed arrangements for an exchange on Spanish territory of German nationals in those countries for persons in German- occupied territories bearing Bolivian and Paraguayan documenta- tion. We requested that Bolivian and Paraguayan officials be urged to take speedy action to enable Spain to conclude the exchange arrangements, and that assurances be repeated that the physical admission of the persons involved into those countries is not expected. A report from our Legation in Bern indicating that Spanish representation of Paraguayan interests in German territory has not been energetically pursued was relayed to our Embassies in Asuncion and Madrid with requests that appropriate action be taken in an effort to obtain a more satisfactory attitude on the part of Spanish officials in Madrid and in Berlin in the discharge of the humanitarian duty voluntarily undertaken by Spain. Our Embassy in Madrid was also asked to support the Paraguayan Government's request to the Spanish Government to seek permission for commissioners of the International Red Cross to visit concentration camps in German territory where 176 - 5 - persons claiming Paraguayan nationality are held and to which the International Red Cross has in the past had little or no access. Another report from our Legation in Bern concerned an individual born in Warsaw, Poland, and claiming Cuban nationality. In view of the possibility that German authorities will consider him a stateless Polish Jew and condemn him to deportation and death, our Embassy in Havana was asked to endeavor to have the Cuban Foreign Office request the Swiss authorities to demand for the individual in question, as well as any other persons similarly situated, treatment to which Cuban nationals are entitled. The Guatemalan and Salvadoran Governments have requested Swiss representation of their interests in Hungary, primarily for the protection of persons in Hungary holding passports and documents issued in the names of the Governments of Guatemala and El Salvador. They have also authorized the United States Government to negotiate for the exchange of such persons. The Government of Guatemala has, however, reserved the right to investigate the legality of the documents in question, and to refuse entry to persons whose documentation is not satisfactory. Our Embassy in Haiti advised us that the Haitian Government had transmitted to the Swiss Federal authorities instructions regarding the status and treatment of holders of Haitian documents in German-controlled territory. It is hoped that this action will serve to safeguard individuals affected by the decree-law of February 4, 1942, pursuant to which persons naturalized abroad forfeited Haitian nationality if they did not return to Haiti before August 5, 1942. The Government of Honduras has forwarded to this Government for transmittal to the Government of Switzerland a communica- tion protesting the removal of certain holders of Honduran passports from the civilian internment camp at Vittel and urgently requesting information concerning the present where- abouts and welfare of the persons named as well as the names, whereabouts, and welfare of any other persons to whom documents have been issued in the name of the Government of Honduras and who may have been similarly removed from or who are detained at other than civilian internment camps. The communication further demands the immediate transfer of all such persons to civilian internment camps where they may be readily available for exchange, and reiterates the determination of the Govern- ment of Honduras not to permit the validity of any documents issued in its name to be questioned by Germany and the expecta- tion of the Honduran Government that the holders of such 177 - 6 - documents shall be accorded the same treatment which the German Government hopes to obtain for its nationals in Honduras. The Venezuelan Government has requested the Swiss Federal Political Department to extend its 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. W. Pehle Executive Director