Volume 555 A, March 13, 1941 – July 28, 1942

DIARY Book 555-A Military Reports by Kamarck March 13, 1941--July 28, 1942 - K - Book Page Kamarck, Andrew M. See Military Reports - M - Military Reports Kamarck summaries, March 13, 1941--July 28, 1942 555-A 1-544 1 Treasury Department Division of Monetary Research Date March 15, 19 41. To: Secretary Morgenthau These are items of significance that may have escaped your attention which Mr. Kamarck has culled from a week's reading of confidential mater- ial he goes over in Miss Chauncey's office. The underlined portions are statements taken from the reports. The other sentences are Mr. Kamarck's own comments and evaluations. Unless we hear to the contrary, a similar report will be prepared each week. HDW MR. WHITE Branch 2058 - Room 2141 2 TREASURY DEPARTMENT INTER-OFFICE COMMUNICATION DATE March 13, 1941. TO Mr. White FROM Mr. Kamarck Subject: The Most Significant Militarv Developments of the Past Week 1. The two German battle cruisers, Gneisenau and Scharnhorst (26,000 ton ships), were sighted on March 8th between the Canary Islands and the Cape Verde Islands off the bulge of Africa. These war ships are the largest that the Germans have ever slipped out of the North Sea. With such formidable ships loose in the Atlantic, it will be increasingly necessary to guard merchant convoys with battle- ships. The presence of these ships in African waters may be an indication that Spanish bases are being used. 2. The Suez Canal has now been closed by German mines for about three weeks. Since the British Near Eastern armies are supplied in large part by way of the Canal, the closing of this route is serious. The mines are probably magnetic mines dropped from airplanes. Counter-measures are effective against such mines but evidently the British had not made suf- ficient preparations to meet this threat in the Suez Canal. 3. The Axis powers are steadily concentrating large forces against Greece. The situation does not appear very hopeful. The Italians now have almost 500,000 men in Albania. This is triple the number of troops that were used in the initial Greek invasion last Fall. The Germans now have 600,000 men in the Balkans. 300,000 of these are already in Bulgaria. The Bulgarian army, which doubtless could not be trusted to play an active part against Greece, has as its main function the manning of the Turkish frontier to protect that German flank during the Greek operations. Only around 75,000 Bulgarians are, therefore, on the Greek frontier. The Greeks, as a maximum, probably do not have more than 400,000 men to use on all fronts. The British will find it difficult to send more than 100,000 men to Greece. The Allies, then, will be outnumbered on the whole by about 2 to 1. As an offset to inferior numbers, the Allies, of course, possess the advantage of good defensive terrain, superior supply lines, and, as against the Italians at least, superior morale. Regraded Unclassified 3 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 1, 1941 TO Secretary Morgenthau FROM Mr. Kamarok Subject: Summary of Attached Reports Egypt The British have retired to S1d1 Barrani (127 miles from Tobruk). The axis forces have occupied Buqbuq, 25 miles east of Sollum and about 25 miles west of Sidi Barrani. (Source: M. I. D. Situation Report.) Tobruk harbor has been temporarily closed because of German mines. A land attack on Tobruk was repulsed with heavy German casualties. The British had no casualties. (Source: Military Attache, London, April 26.) Greece The British hoped at most to be able to evacuate 40,000 men from Greece and to lose all their material. (Apparently, 48,000 men have been saved.) Practically no British air protection could be provided against the intense German air activity. The evacuation had to be carried out in darkness from the southern and eastern Peloponnesian pats. (Source: Military Attache, Cairo, April 25.) During the fighting in Greece, one Australian battal- ion (perhaps 600 men) successfully held off a German mountain division in a pass south of Molos (northwest of Athens) for 40 hours. (Source: Military Attache, London, April 26.) Syria German officers in Yugoslavia are discussing an invasion of Syria by sea and air as the next move. The invasion would be preceded by heavy air attacks on British ships in the Aegean and would by-pase Turkey. (Source: Military Attache, Belgrade.) Regraded Unclassified 4 - 2 - Palestine An oil pipe line in Palestine was sabotaged. (Source: Military Attache, London, April 26.) Spain 75 airplanes have been moved from the Canary Islands to the mainland and Morocco. (This is an opposite movement from that reported about a month ago. At that time, the Spanish were reported 8.8 sending heavy reinforcements to the Canaries.) (Source: Military Attache, Madrid, April 28.) England In response to your inquiry, no combat missions have been given the Boeing B-17 bombers up to the present. (Source: London.) During the week of April 24 no ships were lost in any of the Atlantic convoys. (Source: British Embassy, April 27.) Regraded Unclassified SECRET / 5 By authority A. C. Date 28 apr 41 Initials Paraphrase of Code Cablegram Received at the War Department at 12:15, April 28, 1941. Caire, filed 20:35, April 25, 1941. 1. - Losses of British during tracys evacuation are severe. There is practically no British air support and German air activity is intense. All material in Greese will be lest but British Any authorities hope to save 40,000 treeps. Evacuation is proceeding under cover of darkness from southern and eastern Peleponnesian parts. 2. Libra. Italian casualties in an attack on Tobruk April 25 amounted to 500 killed or captured. FELIXRS Distribution Secretary of War State Department Secretary of Treasury Under Secretary of Mar Assistant Chief of Staff, 0-2 War Plans Division office of Naval Intelligense Assistant Chief of Staff, 0-3 SECRET Regraded Unclassified CONFIDENTIAL 6 Paraphrase of Code Cablegrum Received at the Mar Department at 12:46, April 26, 1941. Landon, filed 17:30, April 26, 1941. 1. s Buylight, April 25. Several hits were chearved during attacks on Axis shipping off the Datch and Fanish coarts. ₺ Right of April 24-25. Kiel was bombed w 68 British berbers, Le Havre w n and Ijmaidem and Willholmshaven w 32. A smaller musber nade raids a Brest. 2. s Hight of April 25-26. Raids of niner propertions took place in the Liverpool, Neweastle and Firth of Forth areas. No reperts have been received of damage and contact - not gained w night fighters. - Daylight, April 25. Redds over Britain were en a reduced seale. Eight planes were observed over the coast in the visinity of Brighton. 3. w British. Hight of April 24-25. - plane failed to return after raids over Germany and compled territories. A German. Daylight April 25. - plane was she's down during raids over Brighten. CONFIDENTIAL + 7 CONFIDENTIAL 40 British Air s Buylight, April 25. From Egyptian bases beabing attacks were made - the hurber at Rhedeo and - consentrations at Capane, Dama and Bardia. the - day attacks - made a Tripeli we British planos based at Malta. 5. a 200 damage to military targets - reparted in an attack - Tobruk w n German dive bembers. Gegenan planes continue to bomb heavily reads leading to the Greek court and parts in the year of British treeps. 6. Three German dive benbers ware shot dom during attacks - Tobank. the British planes were lest. % n to 11:00,,April 26, British authorities had m asserate information in regard to the situation of British twoope in Gresse with the exception that - battelien of Australian treepe w reported to have held off memossfully - German mountain division in & membership pase south of Meles for 40 hours. The British ecutime thair withdrawal with treeys. s. A 3,000-tem Italian freighter was mmk w British nevel units off Twis. Two Anda tankers were sunk w British aircraft, - off Stavenger and - off Brest. 9. - The herber of Tobunk has been temperarily closed to shipping on account of nines dropped from planes. Heavy casualties were suffered CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 8 w Garman troops in a heavy Infustry attack en Tobruk. the attack - repulsed without British ensualties. 10. Almanizia- British columns advancing en Desaye are being delayed w a I your 11. Palastine. in oil pipe line has been sabetaged near Beisan. LEE Distribution: Secretary of Mar State Department % Under Secretary of War Assistant Chief of Staff, 0-2 Mar Plans Division Office of Neval Intelligence 6-3 Air Corps CONFIDENTIAL Regraded Unclassified 9 RESTRICTED G-2/2657-220; No. 378 M.I.D., W.D. 12:00 M., April 29, 1941. SITUATION REPORT I. Western Theater. Air: German. Main effort last night WAS made against Plymouth in considerable force. There were scattering minor attacks along the southern and eastern coasts of Great Britain. British. Limited offensive activity. The battle cruisers at Brest were again attacked. II. Greek Theater. Ground: German troops have occupied the town of Tripoli in the center of the Peloponnesus. The British forces in Greece continue reembarkation from the beaches along the south and southeast coast of the Peloponnesus. The small ports of Nauplia and Kalamata in this re- gion are still held by British troops. Air: German attacks on the British evacuation are believed to have continued. III. Mediterranean and African Theaters. Ground: Axis forces have advanced as far as Bugbug which is about 25 miles east of Sollum. British forces have withdrawn to Sidi Barrani, the farthest point of Graziani's advance and 25 miles to the east of Bugbug. This latest withdrawal further isolates the British force, estimated as the equivalent of a division and a half including limited mechanized equipment, which 1s encircled in Tobruk, now 127 miles to the rear. Air: No reports of activity. RESTRICTED 10 CONFIDENTIAL Paraphrase of Code Radiogram Reseived at the Mar Department at 7:50, April 20, 1941. Madrid, filed April m, 1941. Answering inquiry, report that 95 planes from Consuries ware noved as follows: 40 to the Penincula and 35 to Malilla area, Spenish Marrose, FACHR Distributions Secretary of War State Department Secretary of Treasury Under Secretary of The Chief of Staff Assistant thief of Staff, 6-2 Har Plans Division Office of Naval Intelligence CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 11 Paraphrase of Code Cablegram Received at the War Department at 15:32, April 28, 1941 Budapest, filed 19:30, April 28, 1941. 1. On April 26th and 27th German motor transport was observed moving north through Budapest. Newspaper reporters say that German officers in Yugoslavia are discussing a direct attack against Syria by ass and air as the next German nove. This attack, preceded by heavy air attacks against British ships in eastern Mediterranean, would by-pass Turkey. Also they state that only 4 motorised divisions were required for the Ingoslav campaign. 2. The partial demokilisation of the Hungarian army is now apparent. PARTRIDGE Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence CONFIDENTIAL Regraded Unclassified 12 BRITISH EMBASSY, WASHINGTON, D.C. April 29th, 1941. Personal and Secret. Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, Halifax The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 13 Telegram from London dated April 27th. 1. Naval. During week of April 24th there have been no losses in Atlantic conveys, shipping losses generally are lower. 2. Two Bast doast convoys unsuceessfully attacked off Cromer and in the Thanes Retuary 26th. 3. Norwegian merchant ship damaged Fokker Wolffe with assistance of Hudson aircraft and onemy dropped no bombs 4. His Majesty's Ship York torpedoed March 26th has sustained further damage from near miss basbe in Suda Bay 5. Tenth Canadian troop convoy arrived safely in the Clyde April 19th. 6. Reports 60 far received state Australians amounting to about one brigade have left Greece. 7. Military. Yugeslavia. Yugeslave attempted to blook the Danube. Four pointe near the Iron Gates sue- cessfully blocked by sinking ships. Attempt to blook a fifth less important place was only partially successful. The large railway bridge over the Danube at Belgrade was demolished causing obstruction. 8. Bulgaria. It is reliably reported that Sefia is crowded with German wounded and private houses have been commandeered to supplement hospital accomodation. 9. Southwest France. Air reconnaiseance Franco- Spanish frontier April 22nd showed no unusust movemento roado or railways but revealed large number of dumps of material. Beven divisions including one motorised are believed to be in area Bordeaux-Hondays. 10. Royal A12 Force. Night of April 26th/27th. Fifty bombers sent to Hamburg and small numbers to Enden, Havre an 1 Brest. Out of 65, two are missing. 11./ Regraded Unclassified 14 + 11. Ethiopia. 24 South African sircraft fighters destroyed two fighters and four motor vehicles on enemy aero- dromes. One aircraft lost. 12. German Air Force. 26th. During day small formation sweepe over Southeast England dropping few bombs. One enemy fighter and two of own shot down. 13. Night of 26th/27th. About 130 enemy aircraft came over. Night fighters probably destroyed one enemy aircraft. 14. Libya. 25th. Five M.E. 110's escorted by M.R.109 bombed Halfaya. One M.R. 110 shot down by anti-airoraft fire. 15. Home Security. Night of 26th/27th. Light attack on Merseyside and South Lancashire caused only minor damage and few casualties. 15 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 2, 1941 TO Secretary Morgenthau FROM Mr. Kamarok Subject: Weekly Military Report: The State of German Morale (This 1s based on two independent sources which agree on practically all important points. One source 1s a Military Intelligence Bulletin derived largely from British data. The other source is an article in the May Infantry Journal written by an American engineer who lived in Belgium during the invasion and occupation.) The Army 1. Morale in the army is still very high. This 18 due to the Nazi indoctrination, the successes in the war and to the fact that pay in the army is very high. Morale has, how- ever, slumped somewhat from the spring of 1940 when it seemed that the war would soon end in a German victory. 2. The main reasons for the fall in morale are the desire of the men for the war to end BO that they can return home and the fear that an invasion attempt against England will result in severe casualties. In addition, the letters from home are disquieting. In spite of the victories the economic position at home has not improved. The soldiers are also worried by the fear that the British bombing may kill some of their people at home. 3. Morale 1e weakest among the troops in the occupied countries. Of the different sections, the Austrian troops have the poorest morale, the Bavarians next. The Austrian troops in Norway demonstrated a strong unwillingness to be used in an invasion of England. Severe disciplinary action had to be taken. 4. The German soldiers still have complete faith in Hitler although there persists some dislike of the other Nazi leaders and of the Nazi Party. Regraded Unclassified 16 - 2 - Division of Monetary Research The Civilian Population 1. The people at home show surprisingly little enthusiasm for the successes won. This may be due to the fact that the victories did not improve economic conditions. 2. The British air raids are having an exhausting effect on the people and are affecting output. 3. Many families have had no news of husbands or sons. It 18 generally believed that casualties have been heavier than officially announced. 4. In spite of all this, there 1s still complete faith in the leadership of Hitler. 17 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 3, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Summary of Attached Reports Next German Move British Military Intelligence believes that the Germane will attempt seizure of Crete and occupation of Snain and Portugal. (Military attache, London, May 1). Spain There 18 no verification of the report that the Germans are moving through Spain in the direction of Gibraltar. (Military attache, Madrid, April 30). An unconfirmed report states that new fortifications are being constructed in northwestern Spain. There are also supposed to be 1700 sailors in this area. (Military attache, Lisbon, April 30). Russia British Military Intelligence has information that Germany has demanded that Russia permit a German mission to handle the procurement and the transport of supplies intended for Germany. These demands include control of the transportation system. (Military attache, London, May 1) There is & rumor in Moscow that military forces have hnd to be transported to counteract unrest among the people on the western border of the Soviet Union. The American Consul was informed that thousands of Germans and Ukrainians have been exiled and hundreds shot because they participated in & movement of separation from the Soviet Union. The German Fifth Column continues to infiltrate across the border. (Military attache, Moscow, April 30) The Germans have moved four German divisions from the Balkans northward through Budapest since April 26. (Military attache, Budapest, April30) Regraded Unclassified 18 -2- Libya - Egypt A Glenn Martin bomber on reconnaissance patrol observed and machine-gunned one hundred German troop transports near Benghazi. (Military attache, London, April 30) 50 long-range German bombers have been observed in Libya. (Military attache, London, April 30) At Alexandria, there are the following ships of the Greek navy: A cruiser, 6 destroyers, 2 torpedo boat destroyers, 4 submarines, 1 submarine on the way. The Yugoslave are represented by 1 submarine and 2 motor torpedo boats. (British Embassy, April 27 report from London.) Greece The Germans have in Central Greece 200 Fighters 100 Stukas 25 Army Cooperation planes (Military attache, London, April 30) CONFIDENTIAL 19 I I s I I I 1 1 I 1 infilivations into I I of I & i I 1 CONFIDENTIAL CONFIDENTIAL 20 THE - filed Agent2 30, 190. I I I I I A I I I I Y I I [ 8 I I # 1 s I a s 1 I I e I I I I y I I $ I I 1 I of start, 0.0 I CONFIDENTIAL Regraded n CONFIDENTIAL 21 to 1 if I I / 1 I # 1 s s I I 1 r € I s I I $ I I # I I I 1 a I I 1 I I I e mater of and Fature - teld Mm that thrusando of - 1 - them enties, while hundrede have - I s I I I I I I I I 1 I I $ I I 1 any I I shokter - tem afferte& members of the - reser - who continue infilization - the frontier. I i 3 1 Intelligment CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 22 Persphere.so of Code Cablogves Received at the Mar Department at 13:23, April 30, 1941. Budspect, filed April 30, 1941. 1. your Generales Divisions moving northeard by noter through Budgest since April 26th. 2. It is believed that Hungarian troops are policing surbian areas south of the Dambe, in addition to the areas north of the Dambe which Hangery intends to amex. Hungarian efficials and reilroad personnel are also operating in Serbia, thereby releasing German personnel for duty elsewhere. PARTRIDGE Distributions Secretary of was State Department decretary of Treasury Under Secretary of MP Chief of Staff Assistant Chief of Staff, 0-2 War Plans Division Office of Navel Intelligence CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 23 Persphoneo of Sale febingree Received at the the Supertures s I Leason, filed 19:50, My 2, 1941. 1. I I I I 1 a several airfields in the vare tangets for an attack of 180 Brittsh bestere. the - tettleships as Breat Burber - again benied definite Investment decome. I I 1 a z d '8 s there we little Gerumn activity and what there vas - limited to the single planse in fitghts around the & I I I % 19 I I 1 m. Genera operations were of meterate propertion, chiefly createl patrolling. 2. 26 to extimated that ⑉ planse were employed to - raids as Seginal chiefin is the visimity of Flymouth. Destruction má consulties - very high. 3. a Britter. (2) n the rase w 100 bankers over the Low one plane wee lest. - (1) In the raids an Plymouth five Gorman benbere were shot dom. i CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 24 a I I to I British I attached the - cirdicide at I not Sentes - the part of Suggest. go - - I I I a I I s I z - dive benbere. min the claim - in for obtacho w - beabere as - resulted. 6. - à (2) 9ve - date beatere - alsos down and - I I I s I I I I a a I Germa sirticld - Name. (8) main- Now Aste bechere - shot some. 7. and Italian agrate have reasued their anti-British activities in the Dueg any. a. Brittich Miltimy Intelligence extimates - the - was athengt the compution of Grote not that they will advence is the Herisa Featurale to take presencion of all the Atlantic - remaining is neutral 1 a á 1 I 10,000 I I I I I I in Finiona. the flat w authoritative confirmation here. British Miltery I I : I 10. Britten Millery Intelligence information which w consider authoritative atotos this moveing that - have been mie an Inste w Commany, that a - mission be penditted so Invio procerement and transport I I I any I I $ I I % - CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 25 se + CONFIDENTIAL CONFIDENTIAL 26 I filed Agents 30,1041. I 1 & a - - - traffic off the Norweglan, Belgin 1 1 n I I I 1 I I I s 3 I a I I I z I I I $ I conste of Complet I 1 the I of the Strute s I the w Agest 1 I I I I I I ast Lighter attache - 1 to the I of I I I I 1 Auglis end - Agents s Shave I 1 small ml I I 1 I I fighter I I the I 1 w Agest $ fighters I - - - 1 / # Type the Britten 1 I in an n 1 I the - I I a I we I I CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 27 a I I r I 1 - I 1 1 1 I 3 I 1 I I I 1 I - I I I I B 1 I 1 # 0 in Grosse. Englight, Agree sp. I I I I I 4 I I 5. a Libya. Neglight, Agril no. I I I a , I # I benbers. Becultens - - 4b commities and - damage to - and I 110 2 $ I I à direcco. Doglight, Agril m. All I I 1 # I $ I I I I I I , I I I I I a I I and treege. 6. Summa Leases, a Baylight, Agril 09. a I I s I 1 6 I I 1 I I I I 8 I 1 1 I I I 1 7. the following to a British Militory Intelligence estimate x the - Air Force to Control. Grosse: Fighters, about $90 Dave Benbern, about 100 Also coveral - Cosporation Synstrons About R I Lites. I s I I 1 CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 28 s. Intite I I n 1 4 I 1 I 4 morino ⑉ miles south of in 8,000-tem - - - ml three other chage struck w torgetose, the tate w which to not mm. Both of Sectland a Novegian freighter - sub to attach. 9. estimated I B = I a I z I 1 I I - Distribution: 1 I r I Secretary r I thief Sourstary of Staff r Most thist of Staff, 6-8 Plane Division Office of Noval Intelligence I -3 CONFIDENTIAL Regraded Unclassified 29 BRITISH EMBASSY, WASHINGTON, D.C. April 30th, 1941. Personal and Secret. Dear Mr. Secretary, I enclose herein for your 1.9 personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, Halifax The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 30 Telegram from London dated April 28th. 1. Naval. Patia anti-aircraft ship sunk by aircraft - terpede off Tyne 2150/27. 2. Following Greek warships at Alexandria. Averoff with Flag Admiral Kavadias, 6 destroyers, 2 torpedo boat destroyers, 4 submarines 1 expected, 1 repair ship. 1 Yugoslav submarine, 2 motor terpede boats also reported at Alexand ria. Glenearm special service ship off South West Greece and Rover in Suda Bay both damaged by near miss bombs. 3. So far reported 26,000 British troops evacuated from Greese. About 16,000 to follow. 4. Sunderland on night flight to Narvik 27/28 reported no enemy units. 5. Lady-Bird has bombarded Gasala, Aphis. An enemy column at Halfaya Pass Solumne Escarpment. 6. Reference to attack by our destroyers on enemy convoy 16th; reconmaissance now reveals wreek of Folgore class. Also probably 1 Folgere 1 Spica and Luca Tarigo sunk, 7. During three air attacks on East Coast convoys 27th 1 Dutch ship damaged. On 26th in addition to 1000 ton mor- chant wesel sunk by bomber command 1 4000-ton ship and another damaged in the North Sea. 8. Royal Air Force. Night of 27th/28th. All operations canselled. 9. German Air Force. Night of 27th/28th. 101 enemy aircraft plotted 32 were minelaying, 45 attacked Portsmouth. Considerable damage to property. Several fires caused, three in dockyard serious, all under control. Night fighters destroyed 1 enemy aircraft, damaged another. Poaradod 31 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 5, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Summary of Attached Reports Libya Four ships arrived at Benghazi on April 25th with fuel and bombs for the axis forces. Three more ships left Tripoli on April 26th for Benghazi with fuel, bombs and ammunition. (British Embassy, London telegram, May 1) (These were days when the British fleet was occupied in the evacuation from Greece.) It 18 believed that the whole of the German 15th Panzer division has now arrived at the front lines. (Military. Attache, London, May 2). (This division is a full-sized Panzer division having 424 tanks. It disembarked at Tripoli on April 18 and was expected to reach Tobruk by May 8, according to our military attache at Cairo.) England In the German air attack on Plymouth on the night of April 29th, the Germans inflicted considerable damage to a new British destroyer and slight damage to 8 new cruiser. (British Embassy, May 1, telegram; Military Attache, London, May 2) The Royal Air Force used 10 Sterling long-range bombers against Berlin. 82 other bombers attacked Kiel the night of April 30th. (British Embassy, May 1, telegram) Central America On April 29, Costa Rica delivered Carl Bayer, Nazi leader in Costa Rica, to the Canal Zone to be deported to Germany via Japan. Immigration officials are holding Bayer for the first Japanese boat. Regraded Unclassified CONFIDENTIAL 32 this May 2941, London, filled 24:20, My n 1941. 20 a Buylight, May 10 I I 1 I I 8 / 1 i - abteched w a of mith Britten Other notion I $ I I I I 1 1 I I 4 2 s % h 1 1 I - convict out valida a Batch and - Games airticlds and empaged in bonking attacks - Indian and During the - udght fear British bonkers attended Sex - dispotaked against targets to Berkin and a 200mg - of # curried out relds - d a stight of my 2020 Turgeto in Noutheant Sections and at Milford Harrin - LáverynoR - abtached w of - planne. A my of my 2. & small motor x German I enjugat to getesit duty along - name Structs and coly - - ylans protected the constline of I a Hights of April 20-30. Gornam aircraft indiated considerable 1 1 1 I 19 I I I # e so Leasen. British, there were no Britdsh plane I in this postal. CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 33 - Gerren plans - damaged - - shot dem w Bettle might fighter planse during the might of my 1. 40 MADE 1 I I I 1 r 8 I I I 4 I I I I I I I 1 8 r 6 and comfine. planse also curried mt valide a the st I I I I I I 1 I I 1 1 I I / & - the might of Ape12 20-00 And bookers out - attack 8 Milline Servere damage - infliated - a Britten nine - - and - n British m - Theater And dive bonkers again redel During day11ght - of My 20 Ando - curried - du with - 60 n to thought that the whele of the German 19th Accored Dévision to - in the front Items in the Syptimen compaign, % I 2 $ I I I s a # I 20 to reported that the outer defenses at this term - been - I w a I w $ I i & n to feared that the I - my abtack the Brittle hold advisors at any - the Imagi situation continues to - - - 90 - authoritative figures - available as to the muster I a I 1 1 a $ I I I I I r 1 I I $ r 2 I I I 0 to decess, a total of 40,000 have tem untily - This overwation has been completed. CONFIDENTIAL CONFIDENTIAL 34 Distributions % CONFIDENTIAL 35 BRITISH EMBA68Y, WASHINGTON, D.C. Personal and Secret May 3rd, 1941. Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, Unio Camphin The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 36 Telegram received from London dated May let, 1941. Navel. One destroyer and one mineoveeper badly damaged air raid Malta night of April 29th-30th. Yard craft and stores also suffered. One minesweeper damaged by mine deep water Malta. 2. New cruiser slightly damaged by bomb Plymouth night of April 29th-30th. 3. H.M.I.S. Parvati A/S vessel sunk by mine southern Red Sea. 4. On April 29th Naval units carried out heavy bombardment of enemy M/T concentrations southeast of Tobruk. 5. Armed boarding vessel Cavine captured Italian tanker Sengro, 6,466 tons, loaded fuel oil in North Atlantic. 6. Early April 30th Air officer commending Ireq informed by Officer Commanding an Iraqi mechanised unit that "in the course of training" he had taken up positions on hills surrounding Habbaniya and any aircraft OF troops leaving cantomment would be fired upon. He was told this contrary to Anglo-Iraqi treaty and that aircraft would carry out normal training. 7. Enemy intelligence. German supplies to North Africa. 4 ships arrived at Benghasi on April 25th (2 over 3,000 tons) with fuel and bombs. 3 more ships left Tripoli for Benghasi on April 26th with fuel bombs and ammunition. 8. Royal Air Force. April 29th. Additional reports. Direct hits made on 2 merchant vessels off Stavanger/ Regraded Unclassified 37 Stavanger of 5,000 and 4,000 tone respectively. 9. April 30th. ship of 700 tone hit and vircless station North of Bergen successfully attacked. 10. Night of April 30th/May let. 96 1 bombers despatched, attacked Kiel (82) Berlin (10 stirlings) Rotterdam 4. All returned safely. 11. German Air Force. Night of April 29th/ 30th. Total of 8 enemy aircraft destroyed. 12. April 30th and night of April 30th/May let. Enemy activity slight. Regraded Unclassified CONFIDENTIAL 38 Paraphrase of Code I 1 , s 1 at 8:46, April 20, 1941. Panama, filed April w, 1941. I Times , INK s VAS 1 I I 1 leader in Gesta Mea, was delivered to the Canal some, 1 - request of the Costs Ricen Government, to be departed to Consumer via Japan. Further details later. Avaiting yassage - the first available Jaganese boat, he to MN in the hands of Imaigration Officials at Gamel Zone Quarantine. TAX VOORETS Metributions Secretary of Mar State Department I 8 I Under Secretary of Vesp Chief of Staff Accistant Chief of Staff, 0-8 Ver Plane Division Office of Neval Intelligence Regraded Unclassified 39 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 6, 1941 TO Secretary Morgenthau FROM Mr. Kamarok ubject: Summary of Military Reports Egypt Around May 1st, a large troop convoy arrived at Suez. On May 3rd, two more convoys totalling 200,000 tons arrived. Another convoy of 164,000 tons was expected shortly after May 3rd. (These convoys probably brought around 50,000 soldiers or almost doubled the previous English strength in Egypt.) (British Embassy, London telegram, May 3) Libya It is anticipated that the axis "effort in Libya 1s shortly to be increased". Reinforcements of men and material are being transported to Cyrensica by air. (British Embassy, London telegram, May 2) In the May 1st attack on Tobruk, the axis lost eleven tanks; four of these were lost in mine fields, four by fire from English tanks and at least 3 byMolotov cocktails (bottles of gasoline according to the Spanish Civil War example). The British lost twelve tanks; seven were knocked out and five broke down mechan- ically. (The British lost some tanks in Greece from mechanical troubles too.) (British Embassy, London telegram, May 2) According to our military attache in Rome, there are 23 axis divisions in North Africa (450,000 men). He reports that the Germans have five panzer divisions, two motorized divisions and one infantry division (about 150,000 men). The Italians have one armored division, two motorized divisions and twelve infantry divisions (about 300,000 men). (Comment: This is triple the forces our military attache and British Military Intelligence report as being in North Africa. Five German panzer divisions in North Africa would represent one half of the total panzer strength used against France last year.) 600 German and 450 Italian planes used in the Balkans are now free. The Germans have available for use in the Eastern Mediterranean, two air armies with a total strength of 1,500 combat planes. (Rome, Military Attache, May 2) Regraded Unclassified 40 - 2 - Division of Monetary Research Iraq The Iraqui have put 22 British planes out of action. Surrounding the Habbaniya airport, the Iraq army has in position, one infantry brigade, one mechanized brigade of twelve armored cars and probably one mechanized machine gun company. (The total 18 not likely to be more than several thousand men) (British Embassy, London telegram, May 3) Spain Nazi troops have been concentrating in Occupied France near the Spanish border for about ten days. Actual entry into Spain has not been reported. (Vichy, Naval Attache, May 2) Russia The Italian ambassador in Moscow does not believe Germany will move against the Soviet Union this year. The Japanese military attache in Moscow states that the report of the transfer of the Russian 15th Army from the Far East to Western Russia 1s propaganda. (Moscow, Military Attache, May 5) While there are many rumors in Hungary of an imminent attack by Germany on Russia, our Belgrade military attache thinks this 18 unlikely. The German military and air attaches in Hungary are going home on leave to Germany for a month. It 16, therefore, doubtful if anything important will happen in this area. On May lst, another German motorized division passed through Budapest going north. (Budapest, Military Attache, May 2) German aircraft, artillery and other military supplies have been coming to Japan via the Trans-Siberian. (This explains whom the ban on military shipments across Russia was designed to hit--if the ban is enforced.) ( Tokyo, Military Attache, May 2) Balkans All kinds of ships, ocean-going, 8.8 well as Danube River ships, are being concentrated at Constantza, Romania. (This may be preparation for a naval-land expedition against Istanbul.) (Bucharest, Military Attache, May 2) Traffic on Danube has been seriously curtailed by the bridges destroyed at several Yugoslav towns. (Belgrade, Military Attache, May 2) Regraded Unclassified 41 - 3 - Division of Monetary Research The total of British soldiers evacuated from Greece comes to 43,000 out of an estimated total of 55,000 to 56,000. Not more than 500 of those embarked were lost. (British Embassy, London telegram, May 2) England On May 1st, a lone German bomber dropped five bombs on the Whitehead factory (presumably a torpedo plant), Weymouth and interrupted production. (British Embassy, London telegram, May 2) Germany The Russian military attache at Budapest informed our military attache that the present German airplane production is 4,500 per month. (Belgrade, Military Attache, May 2) Italy The total effective Italian air force totals only 1,050 air- planes. Of these, 700 are land based combat planes; 250, army and navy reconnaissance planes; and 100 are seaplanes. (Rome, Military Attache, May 2) Regraded Unclassified 42 BRITISH EMBASSY, WASHINGTON, D.C. Personal and Secret May 5th, 1941. Dear Mr. Secretary, I enclose herein for your personal and secret information copies of the two latest reports received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, Halifax The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 43 Regraded Unclassified Telegram received from London dated May 2nd, 1941. Navel. From "wryneck" 1 officer 26 ratings, from "Diamond" 10 ratings saved. 2. P.M. May let., Single enemy aircraft dropped 5 bomba on Whitehead factory, Weymouth, production interrupted. 3. On May let Upholder sank two north bound merchant vessels east of Kerkemah Island; Ladybird and Aphis were bombarding enemy Gasale area. 4. Military. Evacuation operations from Greece now reported complete, total number of army personnel got away about 43,000 out of total in Greece now assessed at between 55,000 and 56,000. of those embarked not more than 500 understood to have been subsequently lost. of 1700 Royal Air Force personnel, all but about 100 were evacuated. 5. During the night of April 30th/May lat, enemy attacked Tobruk and penetrated southwest perimeter: morning of May lst, 30 tanks were reported attacking in this area; at 2 p.m. battle was still in progress and 60 enemy tanks were reported within perimeter and were being engaged by our tanks and artillery. 6. Enemy Intelligence: anticipated German and Italian effort in Libya shortly to be increased. Strenuous efforts being made to bring up remainder of 15th armoured division to forward area and reinforcements of men and material being transported to Cyronaica by air. 7. Royal Air Foree. May lst. Blenheims attacked shipping off Holland, near miss made on 5000 ton tanker. Rotterdam/ 44 -2- Rotterdam petrol stores successfully attacked by one airereft. 10 aircraft bombed Den Helder hitting power house and doek installations. One aircraft missing. 8. Night of May lat/May 2nd. Bomber command operations cancelled but 5 coastal aircraft attacked Brest, 3 dropped mines there. 9. German Air Force. May lat/May 2nd. 73 aircraft operated all but 2 against Liverpool area. No heavy damage caused and casualties not serious. Night fighters destroyed one bomber and damaged another. 10. Tobruk was bombed 6 times each day April 29th and April 30th. Two Junker 87s destroyed and two damaged by anti-aireraft fire. Regraded Unclassified 45 Telegram received from London dated May 3rd, 1941. Maval. A/8 trawler bombed sunk May 1st off start Point. During air raids Malta "Incounter" and "Fermey" were further damaged and one auxiliery mine- sweeper sunk. "Jersey" sunk by mine May 2nd. 2. May 2nd. His Majesty's ships in Persian Gulf were ordered to commence hostilities against Iraq. & large troop convoy arrived at Sues a few days ago, two other convoys totalling about 200,000 tons have just arrived, and another totalling 164,000 tons due shortly. 3. Militery. Tobruk. Determined attacks by enemy from direction of Acroma on western perimeter throughout May let resulted in capture of our foremost defended localities on 5,000 yards front. Enemy tanks concentrating on infentry forward posts. Counter attack on with tanks, portion of enemy withdrew after losing 4 tanks in mine fields, at least 3 by Molotov Cooktails and 4 knocked out by our tanks. Our losses during the day were 3 infantry and 4 cruiser tanks while additional 5 infantry tanks broke down mechanically. That evening counter attack by one battalion was unable, owing to enemy tank action, to restore all localities and general line was adjusted to exclude salient at El Medawar. 4. On the morning of May 2nd 30 medium tanks followed by two companies of infentry advanced against our new line but were stopped by artillew fire. 5. Iraq. May 2nd. Operations began round Habbaniya aerodrome. Iraqi artillery fire continued in spite of active bombing but later subsided owing to suspected shortage of ammunition. Up to now we had suffered/ Regraded Unclassified 46 + suffered about 40 casualties. 22 of our sircraft were put out of action. Iraqi circraft made unsuccessful bombing and machine gun attack on camp. Iraqi forces in this area are estimated at about 1 infentry brigade, 1 mechanised artillery brigade of about twelve ermoured care and probably one mechanised machine-gun company. 6. Similar situation exists at Basre where an Iraqi battalion is reported dug in north of the town with a pack battery guarding southern approach to the reilway bridge on Baera-Baghdad reilway. 7. Royal Air Force. May 2nd. Alenheims bombed 2 merchant vessele off Juist. One vessel sunk and other set on fire. 8. Night of May 2nd-3rd. 119 aircraft despatched against Hamburg industrial centre (94) Enden Docks (22) and Rotterdam petrol stores (3). Four of our aireraft have not reported to base. 9. Mediterreneen. May let. Destroyer and merchant vessel were sunk and on May 2nd direct hits were scored on 3 merchant vessels and on a destroyer by Blenheime off wast of Tunis. 10. Night of April 30th-May let. Benghasi attacked, many fires started and ammunition dump destroyed. 11. German Air Force. Night of Bay 2nd-3rd about 150 enemy aireraft operated, Liverpool area main target. Three aircraft destroyed by night fighters and one by anti-aireraft fire. 12. Tobruk attacked by dive bombers escorted by fighters on May let. Four ME 109a were shot down, one Hurricane being destroyed. Regraded Unclassified 1 CONFIDENTIAL 47 I Y Code Indiagram at 16:01, they 2, 1941 - filed If 2, 1941. I 1 3 $ a 1 A k I Marth Africa are as follows: Itelian 1 s I Italian 2 I 2 Information Ibalian 12 (exgunined from elements of the colorial pulise.) Comma 1 The Italian divisions are for the most part erganded for motor $ I I 1 1 I I 1 I them. In addition, there is also the Reyal Corps of colonial I I Idented 1 & I I I 8 5 I I 1 I I 1 # & I 1 I have been relationed w the class of operations in the Balkens. For use in the Control and Eastern and in Africa, the ends powers now have available 2 German air smice. Their 1 1 a 1500 I 1 1 1 i not otherwise provided for. The total effective foress of the $ Indian I 1 Inc. s I 200 I I CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 48 I 1 I 1000 I I TO # 2 possible to onlarge the General air faree as that as fuel and I I 1 & FISKE Distribution of staff, 0-2 Intelligence CONFIDENTIAL Regraded UInclassified CONFIDENTIAL 49 Paraphrase of Code Radiogram Received at the War Department at 9:41, May 2, 1961. Visay, filed May s, 1941. According to official seurces, concentration of East treeps in occupied France near Spanish border has been in progress for about tem days, but actual entry of such treeps into Spate has not been reported. LEARY Matributions Secretary of Ver State Repartment Secretary of Treasury Var Plans Division Office of Naval Intelligence CONFIDENTIAL Regraded Unclassified 50 CONFIDENTIAL Paraphrase of Code Endiogram Received at the Var Department at 16:01, May 2, 1941. Budapest, filed May 2, 1941. The Russian Military Attache has informed as that the present German airplane production 10 4500 per month. River traffic on the Danube and Tiesa has been seriously curtailed by bridges destroyed at Gomboe, Ulvidek, Titel and Zenta. K (The last two towns are on the Tissa). Many rumors here of imminent attack by Germany on Russia but it seems unlikely The Germen Military and Air Attaches are about to go on leave to Germany for & month, hence doubtful if anything important will occur in this area. Another German motorised division moved northward May let. None today. PARTRIDGE Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, 02 Var Plans Division Office of Naval Intelligence CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 51 Paraybrase of Sode Cablegram Received at the Ver Reportment at 8157, May 8, 1941. Neasew, filed May 5, 1941. 1. the Italian does net believe that - will nove against the Seviet Union this year. 2. The revement of the 18th law from the her Must to alleged w the Japanese Military Attache to be propaganda. S. the Jaganese Assistant Military Attache to Mossev stated that he will depart from Neesew a May 8 to # with Matureka on a mission to bring about better feeling between the United States and Jayan. THANGE Metribution: Secretary of Ver State Repartment Secretary of Treasury Under Secretary of War Chief of Staff Ver Plane Divicion Office of Naval Intelligence CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 52 of Code Indiagrem Received at at 9:22, they 5, 1941. Tekyo, filed they a, 1941. the first hand information this effice about servivel is Jogen of military missions from Commany and Italy though such nicsions have left Jagan for these countries. Be nove disconnible at procent which might be interpreted as proporatory to silitery action valor Article 3 Triporhite I 1 ! 1 s 1 I 1 Plus greater then neemal under China Mar conditions and my be there in restiness for nove against Singapore w Bast Indies. Also runsered that Japanese nevel and Air Force strength increased Beign. Not in position to evaluate these reaso. German aircraft, artillery and other military supplies coning to 1 Jayan via Trens-Siberian m. I Distribution: Secretary of for State Department Secretary of Treasury Under Decretary of Ver thief of Staff Assistant thist or Staff, 6-8 War Plans Division Office of Nevel Intelligence CONFIDENTIAL Regraded Unclassified RESTRICTED 53 of Code I I $ 2 1 at St20, May 2, 1941. Rusharent, filed 14:20, May 2, 1941, All kinds of ships, coon-going as will as these exployed on the - are being concentrated at Constrution. This report is overldered reliable although the yearpese for which this skipping is intended to not clear. RARAY Motributions decretary of Welp State Reportment 1 to Valuer deceasery of Ves Chief of shaff War Plans Division Office of Navel Intelligence RESTRICTED Regraded Unclassified 54 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 6, 1941 TO Secretary Morgenthau Luy and keep this uh to date Subject: Summary Tabulation of Royal Air mindley Force Raids to FROM Mr. Kamarok May 1, 1941 (Based on Hanson Baldwin's Data) my A. Number of Areas Attacked In Germany 270 In occupied areas 265 In Italy and Sicily 27 Total 562 B. Analysis of Targets Number of Attacks Ports, docks and shipping 850 Airdromes and seaplane bases 700 Industrial plants 650 011 refineries, synthetic oil plants and tank farms 330 Total of above 2,530 C. Leading Cities Attacked Number of Attacks Germany Hamburg (port) 65 Bremen (port) 62 Cologne (industrial center) 61 Wilhelmshaven (port) 48 Emden (port) 44 Gelsenkirchen (synthetic oil) 43 Kiel (port) 39 Berlin (industrial center) 39 Mannheim (industrial center) 36 Essen (industrial center) 33 Hanover (synthetic oil) 33 Total of above (11 cities) 503 55 - 2 - Division of Monetary Research Number of Attacks Occupied Areas Boulogne (port) 81 Calais (port) 67 Ostend (port) 64 Flushing (port) 63 Brest (port) 57 Lorient (port) 48 Total of above (6 cities) 380 Italy Turin (industrial center) 11 Naples (port) 9 Total of above (2 cities) 20 D. Total Royal Air Force losses in these raids to May 1 600 planes 56 MAY 5 1941 NEW YORK TIMES THE BATTLE OF THE AIR By BANSON W. BALDWIN The Mery Genuer bombtogs of relatively Ettle cost (avange loss Drive porte last work of about thirty bombers. or so- with Developed and the companying fighters, a month, plus subjected to - of the most most of the air crews that man revers attacks of the Var. them) These continuing large raide The R. A. F. offensive affact is against Brijelo are saw made prob- not equal in mass to the Ger- ably by from 300 to 600 planes-by man thrists, stock It - untikely no medical the Recept forces the that the British are as yet able to Germans could employ, but forces seud out from bases In Brkain an that they osn continue employing exerage of more than 100 to 250 Indefinitely. Raiding of this type bembers nightly. The British are by night, with small losses to the hammaring at widely dispersed Germans, and with large part cities targets, whereas the Germans are and dockyards as the principal ob- bitting at concentrated targets. jectives-le having, and is certain Moreover, compared to the opers- to have, cumulative effect upon the tions of last year, the German raids British was effort. On the other now seem to have somewhat greater hand, there In another side to this continuity of effort. picture: #. presents many of the Obviously, neither side has yet cities of Geemany blasted by bombe solved the problem of night bom- and a mall, but steadily increasing hardment, although the British toll of Name night bombers. seem to have made more progress Official figures for the first twenty than have the Germans. The Brit- months of the war, up to May 1, lah, since the beginning of this just made available from Britain year, have shown growing confi- show that British aircraft have dence In their air strength and up- hombed over 270 areas in Germany, parently have conducted more day- 265 others in German-occupled terri- light sweeps against near-by objec- tories and twenty-seven in Italy and tives, such as Invasion ports and Bicily, a total of 082 objectives. The enemy airfieids, than the Germans. figures show the British preocoups- Losses More Nearly Equal ties with the so-called invasion ports The air losses-because most of and German submarine and naval the action has occurred et night- bests that have been mided report- are more nearly equalized than they only and heavily by the Royal Air were lust the when in the great Force. The total number of raids daylight air battles over Britain the on porta, docks and shipping is Germans lost two to four times the about 650. number of planes lost by the Boulogns has been bombed 81 British. times, Calais 67, Hamburg 65, Os- The British estimate that the Ger- tend 64, Flushing 63, Bremen 62, mans have lost about 3,300 aircraft Brest 57, Wilhelmshaven 48, Lorient during the course of the war and 48, Emden 4d and Kiel 39 times. 7,700 trained airmen. But only 4. Berlin has been bombed 39 times, very small portion of this number Naples 9 times and Turin 11 times. bas been lost since the major air There have been some 650 raids on battles of last year tapered off in industrial plants, 61 of them on Co- October and November. In the en- logne, as on Mannheim, 38 on Easen. tire month of April sighty-seven German raiders were shot down Blows at Nast on Supply over the British Isles, according to The British continue for blest away British official figures, as com- at Germany's oll refineries, syn- pared to the 100 to 200 lost daily thetic oll plants and tank farms, In some of the air battles of last although not with the same inten- September. city as at other targets. Three hun- The figures for German planes dred and thirty raids have been shot down over Britain this year made on these objectives, 43 of them have been officially estimated by against Gelsenkirchen, 33 against London as follows: Hanover. German airdromes and Cause April. March. To Jan seaplane bases have been bombed Night fighters 40 10 Anti-atreraft 20 19 7 11 700 times. Other methods 3 a 5 2 In all of these raids the British Total ST 44 18 15 have lost since the war started The indicated increases in losses about 600 planes, including fight- la not & relative one, since obviously are on offensive aweeps, and have a great many more German planes destroyed on the ground or shot were raiding Britain during April down about 140 German planes that than during the bad weather of attempted to Intercept them. January. All of this presente a pleture of It is likely that both sides are considerable damage to Germany able to more than replace their total and German-occupled territory at losses in planes and pilots, CONFIDENTIAL 57 Paraphrase of Gode Radiogram Received at the War Department at 14:00, April 25, 1941 London, filed April 25, 1941. I. Daily Cable. 1. British Air Activity over the Continent. as Daylight of April 24. Fighter squadrons effected three offensive patrols over Occupied France attacking airfields. Two freighters were sunk off the Norwegian coast. be Right of April 23-24. No results were observed after an attack by 67 heavy bombers on the two German battleships in the harbor at Brest. All British planes returned safely. A direct hit on one of these battle- ships in a recent raid has been claimed. The battleship was probably damaged. Le Havre was attacked by the Coastal Command. 2. German Air Activity over Britain. 4. Wight of April 24-25. German raids over Britain were widely scattered and on a reduced scale, chiefly over England, with a few planes attacking targets in Scotland. be Daylight of April 24. There was very little German air activity over Britain except for strong defensive patrol of the Dover and Calais area and attacks on shipping. 3. German Air Losses, British Theater. 1. Night of April 24-25. British night fighters damaged two planes. CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 58 4a British Air Activity, Middle East Theater. 4. Libya. (1) Daylight of April 24. Planes based on Egypt contimed fighter and bombing attacks on Axis landing fields, motor convoys and supply dumps at Gasala, Bengasi and Derna. (2) Tripoli airport was again bombed by planes based at Malta. be Greese. (1) Daylight of April 24. No British air operations are reported. Substantially all British combat planes have been evacuated from Greece and are now based on Egypt or Crete. 5. German Air Activity, Middle East Theater. 4. Daylight of April 24. German air activities were on a minor scale except in Greece where the rear communications of the British forces as far as the Greek coast and particularly the roads Thebes and Corinth to Kleusis were subjected to heavy and uninterrupted bombing. 6. German Air Losses, Middle East Theater. as Daylight of April 24. One German plane was destroyed in British raids on Libyan supply facilities and landing fields. b. Night of April 23-24. In the course of raids on Plymouth, HMS LENES, destroyer, (1918) 1090 tons, was severely damaged. 7a Greece. a. Night of April 23-24. In raids on Pirasus harbor, German planes sank one CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 59 destroyer and damaged a second and a hospital ship. Two other hospital ships were damaged; one off Missolenghi and the other off Megara. II. The following is a summary of British Intelligence information to 07600, April 25, 1. In Italian East Africa the advance of British forces continues successfully. 2. Greece. so It is reported that a German Air-borne Division has been placed at the disposal of the High Command in Greece. It is thought that it will probably be employed against Crete or Athens. be An attack by a German Mountain Division was reported re- pulsed on the British front. 8. Small enemy parties were reported to have landed on Eubosa, but later withdrew. de Small detachments of Germans have entered Preveza, e. German gun explacements are being prepared on the shore of the Gulf of Lamaikos. 3. Libya. 1. Sollum. British offensive night patrols are continuing with success. b. Tobrush. Ten Axis trucks loaded with troops, 8 planes and 3 guns were destroyed by British artillery. LEE Distributions Secretary of War State Department Secretary of Treasury War Plans Division Office of Naval Intelligence Air Corps Assistant Chief of Staff, 0-3 CONFIDENTIAL Regraded Unclassified 60 RESTRICTED G-2/2657-220; No. 376 M.I.D., W.D. 12:00 M., April 26, 1941. SITUATION REPORT I. Western Theater. Air: German. Attack of moderate intensity was made on Sunderland on the night of the 25th-26th. British. Normal attacks on northwestern Germany centering on Kiel. A light raid was made on Berlin. II. Greek Theater. Ground: German troops have reached Thebes. British forces, presumably covering the evacuation, are reported making a last stand on Mount Kitheron and Mount Gerania. Air: No change. III. Mediterranean and African Theaters. Ground: North Africa. A German attack on Tobruk was repulsed. Patrol actions are reported in the Sollum area. Abyssinia (Ethiopia). The British have con- tinued pressure on the Italians at Dessye and near Gambela, capturing several hundred prisoners. Air: Axis. Attacks on ground forces near Sollum. Malta was bombed. Attacks on shipping in the eastern Mediterranean. RESTRICTED RESTRICTED 61 Parephrase of Code Cablegram Reseived at the Var Department at 09:09, April 26, 1941. Askara, filed April 25, 1961. Orders have been issued for the Army Service and the Reserve Officers' School to nove at case from Constantineple to the interier of Tarkey. Certain individuals connected with the schools, nov 6a. sick leave, have also been ordered to move. The to revements have caused a fairly serious congestion of the Hydaryasha railhead. This action is of a precentionary nature. KINGS Distribution: Secretary of Mar State Department Secretary of Treasury Under Secretary of Mar Assistant Chief of Staff, (-2 Var Plans Mivision Office of Naval Intelligence RESTRICTED 62 RESTRICTED G-2/2657-220; No. 377 M.I.D., W.D. 12:00 M., April 28, 1941. SITUATION REPORT I. Western Theater. Air: German. Offensive activity on a significant but reduced scale. The Liverpool area was bombed on the night of the 26th-27th. Last night the main effort was delivered against Portsmouth. Effective attacks on shipping are claimed. British. Normal offensive activity. On Saturday night Hamburg was attacked heavily. Direction of last night's effort is un- disclosed. Yesterday & small daylight raid, probably experimental, was made in the Cologne area. II. Greek Theater. Ground: German troops occupied Athens on April 27. This force comprised one armored and one motorized infantry division. German parachute troops captured the isthmus of Corinth on April 26. A German column crossed the Gulf of Corinth from Missolonghi on April 27. This column then captured Patros and Pyrgos. How the crossing of the Gulf was effected is not known. The Italians have occupied the island of Corfu. British forces are reembarking from Nauplia and other Peleponnesus beaches. Air, Continuance of German close support plus attacks on shipping used in the British evacuation. III. Mediterranean and African Theaters. Ground: North Africa. Axis units on the evening of April 26, crossed the Libyan-Egyptian frontier at several points. It is impossible to state at this time whether the Axis offensive is underway or whether this action is merely a reconnaissance. Abyssinia (Ethiopia). British forces closing in from the north and south have occupied Dessye. Air: No reports of important operations. RESTRICTED Regraded Unclassified 63 RESTRICTED G-2/2657-220; No. 385 M.I.D., W.D. 12:00 M., May 7, 1941. SITUATION REPORT I. Western Theater. Air: German. Glascow, Liverpool and the Clyde were attacked again. Air combat was reported along the Southeast coast and the British claimed nine Messerschmitts shot down. British. Fires started at Hamburg and Le Havre. II. Mediterranean and African Theaters. Ground: North Africa. No special change in the situation. East Africa. British troops have occupied Quoram, about thirty miles south of Amba Alagi. Air: Axis. Tobruk raided and one ship sunk in harbor. British. Raids on axis bases in Eastern Libya. III. Iraq and the Arab World. Iraq forces driven from Habbania airfield, west of Baghdad. Nine British bombers and two transports destroyed on the ground by Iraq bombers. A watch is being kept for Axis transports carrying troops to Iraq or preparing to land troops in Syria. The pipe line to Haifa is in Iraq control only at Kirkuk, Fort Rultah and two minor points, but these are important junctions of transportation also. RESTRICTED CONFIDENTIAL 64 Farephrase of Goda Cablegram Received at the Var Department at 18:45, April 25, 1941, Lisben, filed April 25, 1961. Another Infantry Nattalism sailed for Morta (Amores) on April 24. and Distribution: Secretary of Mar State Department / Secretary of Treasury Under Secretary of Mar Assistant Chief of Staff, 4-8 Yes Plans Division Office of Naval Intelligence CONFIDENTIAL Regraded Unclassified RESTRICTED 65 Paraphrase of Code Radiegrom Received at the Var Department at 18:41, May 5, 1941. Ankara, filed May 5, 1941. The tone of the Turkish press toward Germany is less belligerent. There are appearing articles en England which are mildly critical. ELINS Matributions Secretary of Mar State Department Secretary of Treasury Var Plans Division Office of Naval Intelligence A. c. of s., (-) RESTRICTED CONFIDENTIAL 66 Paraphrase of Code Cablegram Received at the War Department at 16:00, April 26, 1941 Berlin, filed 16:30, April 26, 1941. 1. Germany has had unusual success in handling her supply situation in all campaigns. The principles underlying her supply operations have been in general enunciated in Report No. 16833. However, under the stress of war there have been some slight moderations; visi 2. The National Socialist Motor Corps has created mumbers of motor transport and traffic regulation battalions. 3. The "Todt" organization (G-2 Note: The organisation which constructed the West Wall) has created & large number of labor units to assist the pioneers in repair and maintenance of roads. 4. Hir superiority has also been a major factor in the success of the German supply operations. This air superiority has prevented the enemy from interfering seriously with the movement of German supply columns, and has permitted the Germans to avoid time consuming precautions against enemy aircraft. 5. I desire to stress also the following points in the German methods. 6. All manufacturing, transportation, and supply institutions are under military control. 7. Supplies are distributed in depth. 8. Reserves are maintained at all time. 9. Loading is done in such a way as to avoid unnecessary re- handling. 10. Columns are protected by mobile antiaircraft guns. CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 67 11. Coordination and cooperation of all units and agencies; rail, water, and air; to transport the appropriate materiel, when and where needed. Able and energetic leadership. 12. The existence of an organization for the prompt seisure of supplies and exploitation of factories in occupied territory. 13. Depots are placed in peace in areas suitable for projected operations. is PRETON Distributions Secretary of War State Department Secretary of Treasury Under Secretary of War Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence Assistant Chief of Staff, G-3 Assistant Chief of Staff, 0-4 Quartermaster General & CONFIDENTIAL Regraded Unclassified 68 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 7, 1941 TO Secretary Morgenthau FROM Mr. Kamarok bject: Summary of Military Reports, May 7 England A new cruiser, Sirius, being completed at Portsmouth, was hit by a bomb on the night of May 3-4. During the same night, 8 total of 270 German bombers operated over England. The Central Railway Station at Liverpool was forced to close temporarily. Production at the Vickers Armstrong Naval Construction Works at Barrow in Furness was seriously affected. In the raid of May 4-5 on Balfast, the shipyards and the Shorts aircraft factory (probably building Short Sunderland fly- ing boats) were damaged. (British Embasey, London telegrams, May 4, May 5) Turkey According to our Military Attache in Bulgaria, there are various indications (unspecified) that a Turkish-German agreement has been reached. The Turkish Military Attache in Sofia, however, 18 sure 8 stand will be made against Germany. (Sofia, M.A., May 50 There are stories in Ankara that the Russo-Turkish frontier has been closed but these are denied. The German consulate at Istanbul is reported to have acquired 40 edditional "assistants" recently. The Germans and the Turks are cooperating in rebuilding the bridges that were blown up by the Greeks on the Turkish frontier. (Ankara, M.A., May 5) Irao Iraq forces have seized three towns on the pipe line to Haifa. At Basra the British have driven the Iracui back from the sirport, power station and docks. (London, M.A., May 4) Regraded Unclassified 69 - 2 - Division of Monetary Research Balkans German troops are reported to be moving northward through Romania. (We have had reports of movement northward through Budapest.) (Sofia, M.A., May 5) The total number evacuated from Greece comes to 51,640. (This may include Greeks in addition to the 43,000 English reported a few days ago.) (British Embassy, London telegram, May 4) Libya - Egypt According to Vichy estimates, the axis has 11 divisions in Libya. Of these, two are German panzer divisions and one a German motorized division. (This is less than half the 23 divisions our Rome Military Attache reported.) The axis 1s estimated to have 500 airplanes in Libya; 200 Italian, 300 German. (Vichy, Naval Attache, May 3) British planes from Malta bombed an axis convoy; one destroyer was sunk, one damaged; one cargo boat was sunk and three damaged. (London, M.A., May 3) 70 BRITISH EMBASSY, WASHINGTON, D. May 6th, 1941. Personal and Secret. Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, Halifax The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 71 Telegram from London dated May 4th. 1. Naval. None Waters. Night of May 3rd/4th. His Majesty's Cruiser "Sirius" (completing) hit by bomb at Portsmouth. Damage also done to dockyard, 2. North Atlantic. Italian ship (5,600 tons) with fuel oil for Brest intercepted 350 miles from North Asores and has sunk. French ship (3,500 tons) intercepted by Ocean boarding vessel on May let arrived at Gibrajtar. 3. Attacks on Shipping. May 3rd. Two convoys bombed off East coast, one Norwegian ship (13,050 tons) being sunk and one (1,150 tons) damaged. 4. British ship (7,310 tons) independently inward bound reported being fired on by U-Boat 450 miles from west Iceland (c.). 5. Total numbers evacuated from Greece 51,640. 6. Royal Air Force. Night of May 2nd/3rd. 81 tons of H.E. (including 7 very large bombe) and 12,500 incendiaries dropped on industrial centre of Hamburg with good results in clear weather. Enden (16 tons) and Rotterdam petrol, harbour also attacked, fires started. 7. May 3rd. Blenheims obtained hits on 2,000 ton cargo ship (stern awash) 500 ton trawler (down by the bow) and 5,000 ton carge ship (damaged) in Channel. 8. Night of May 3rd/4th. 144 aircraft despatched to attack Cologne industrial area (101) Brest (Scharnhorst and Gneisenau) (33) Rotterdam (9). All crews returned safely. 9. Libya. Night of May lat/2nd. Wellingtons bombed Benghasi harbour and M.T. near Derma. 10. Iraq. On May 2nd and May 3rd. Wellingtons attacked Iraqian forees Habbaniya and bombed enemy positions. Landing grounds still in use by our airoraft. 11./ Regraded Unclassified 72 + 11. Night of May 3rd, May 4th. 270 bembers operated. Our night fighters destroyed 12, probably destroyed another swo, damaged two. One Spitfire destroyed. :) 12. Home Security. Night er May 2nd, 3rd. Casualties Liverpool, reported 60 killed, 121 seriously injured, Birken- head 10 killed and 11 seriously injured. 13. Night of May 3rd/4th. Merseyside heavily attacked, Liverpool 150 aircraft, Portemouth 15, Damage Liverpool and Bootle again severe, and fire situation at one time serious; Clarence Dock Power Station and Lister-Drive Power Station involved, details not yet available. Feared casualties heavy. 14. German Air Force. May 3rd. Enemy activity eon- fined to patrols in the Straits. Enemy aircraft destroyed over Dungeness. Regraded Unclassified 73 BRITISH EMBASSY, WASHINGTON, D.C. PERSONAL AND May 7th, 1941 SECRET Dear Mr. Secretary, I enclose herein for your - personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary Very sincerely yours, Halifax The Honourable Henry Morgenthau, Jr, United States Treasury, Washington, D.C. Regraded Unclassifie 74 Telegram received from London dated May sam, 1941. Navel. Parschute mine dropped in Waveney Dook Lowestoft night of May 3rd and 4th. Sank one M/S trawler and damaged an A/R trawler. 2. Gloucester on passage in Mediterranean was bombed and damaged April 4th (sic). 3. During air raid on Liverpool night of May 3rd/May 4th the "Adventure" minelayer slightly damaged, eight merchant ships sunk or burnt out and one damaged. 4. Two convoys on the East Coast night of May 4th/May 5th bombed without damage but South Down shot down one enemy aircraft. 5. Military. Libya. Counter attacks by our troops Tobruk on night of May 3rd/May 4th unsuccessful owing to the enemy's bold use of tanks, machine guns, flame throwers. Enemy casualties thought severe. 6. Dump of Royal Air Force bombe abandoned seven miles east of Sollum destroyed by our patrols during night of May 2nd/May 3rd. 7. Iraqi reinforcemente which have reached Samawa on Buphrates by rail from the North likely to be used to attack our camp at Shaiba and Beara port area. Rashid Ali has informed His Majesty's Ambassador that if may Government building in Bagdad is bombed buildings in which British subjects are collected will be bombed. 8. Royal Air Force. Night of May 4th/Mey 5th. 97 aircraft sent to battle eruisers at Brest, ten to Havre and nine to Rotterdam and Antwerp. All returned safely. Regraded Unclassified 75 ÷ 9. Iran. May 2nd. Aircraft from our flying training school carried out nearly 200 sorties - 161 tone of bombs dropped on enemy gun emplacements, troops and transports around Habbaniya. We lost 2 sireraft in the air, 2 on the ground and others damaged on the ground. 10. During the night May 2nd/May 3rd Wellingtons attacked Beghdad aerodrome causing heavy damage to buildings and aireraft and in daylight attack May 4th destroyed 24 enemy aircraft on the ground; during these operations one enemy fighter shot down, 2 more unconfirmed. 11. German Air Force. Night of May 4th/May 5th. Estimated 220 aircraft operating mainly against Liverpool, Belfast and Barrow areas. About 15 others against shipping and 25 enemy night fighters over East Anglie. Preliminary reports indicate that our night fighters destroyed two, probably destroyed 3 and damaged 5 more; anti-aireraft shot down one. 12. Malta. Night of May 3rd/May 4th; during raid by about 40 aircraft considerable damage done to military and civilian property; one enemy aircraft shot down and another damaged by anti-aireraft fire. 13. Home Security. Night of May 3rd/May 4th; Liverpool. This raid heaviest yet on Merseyside. Central Post Office was burnt and there were many other large fires. At 8.00 p.m. on May 4th several were still visible. The Central Railway Station is temporarily closed, as well as several local lines on account of debris and unexploded bombs. Casualties at present 406 killed and 641 seriously wounded. Barrow in Furness Production/ Regraded Unclassified 76 Production at cas Vickers Ametrong Naval Construction Works said to be seriously affected. 14. Night of May 4th/5th. Belfast; large fires were caused in the city and damage occurred in shipyards and at Shorts aireraft factory. Regraded Unclassified CONFIDENTIAL 77 Paraphrase of Gode Cablegram Received at the Var Department at 24:36, May 5, 1941. Sefia, filed May 5, 1941. I have it on trustworthy authority that the Germans are moving troops northward through Remania and Dudspost. The Military Attache of Turkey here again assures se that the Turks will stand firs against the passage through their country of the treeps of any other state. In spite of that, however, there are various incidents which suggest an agreement with the Germans. JAININ Distribution: Secretary of Ves State Department Secretary of Treasury Under Secretary of Var Chief of Staff Assistant Chief of Staff, 0-3 Var Plans Division Office of Neval Intelligence CONFIDENTIAL Regraded Unclassified 78 CONFIDENTIAL Forephrase of Sale Rediegram as as 9105, they " 1941. Asmes, filed My 4, 1941. Hear Diretike a refireed bridge use Mem up w the Cresize during the Curren attack. Also two retirent bridges over the River. the expearance of the bridges - Mirno tallentes that the Terbs I I 1 I 1 I the É a 38 is MR agreed that the - will provide materials at the Turies will previde laborare for repairing the bridges. the Cummer premise that they will - me - of the reilreed line to bring ofther munitions of - or seldiers to Creek territory. no present, freight is being cant w my of the Banabe ml Turkish freight is being given advanced. prierity. Startes are going about regarding a elestag of the frenkier, but meet with vigerous dentals. 1 have good reason to believe regarts reaching as to-day that the - 1 have taben Mytilens. About be additional assistrate have joined the I I Requested = s 1 I I I Distribution: Secretary of the State Department Secretary u Treasury Vater Secretary of Mar thist of Staff Accistant thief of Staff, 0-2 Ver Plane Division Office of Nevel Intelligence CONFIDENTIAL CONFIDENTIAL 82 Paraphrase of Code Rediogram Received at the Var Department at 20102, May 5, 1941. Visky, filed May 5, 1961. Airplanes in Libya estimated as follows:- Italian 2001 German 300. Axis treeps in Libya estimated to be as follows:- German Divisions - 3 Mechanized, 1 Metorised: Italian Divisions - 1 Mechanized, 2 Meterised, 5 Infantry including one Black Shirt Division. Some sources set German Divisions at 2 Mechanized and 4 Infantry, but this is thought high here. LEAHT (Note:- Above estimates from Vichy are far below those of recent date w n/a, Home, who is believed to be a more accurate source for information on this particular matter.) Distribution: Secretary of Mar State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, 0-3 Var Plans Division Office of Naval Intelligence CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 83 of date Coblegron s I 1 as 7:38, My 3, 1942. Lendon, filed 19:35, May " 1941. 1. a Beylight, My a. the offensive everyo - carried out along the const of France w British fighter planse. R Aste novehnet chipping off the const of Holland vie benied w British netion planse. to a recult, - Aste Jessel we not a fire ml a second - - min. in Bight of May 14. give planse of the Dettish Genetal Comment est raids a the - 26,000-tem - battleships - end - at the part of Brest. Abrasse wather conditions cannot the of all flighte w please of the Benter Command. a. a I * I re may videly organated places in the MAlenie were. subjected to Guman valde bab tibe getency tangabo were again at Storeep River decise á 1 m I di I a smill unher of Geturn planse - plotted - Morth Irelema in the Belfact region and along the southern const of Britain. Defensive gatrols - sointained w the along the French esset at Calais end - the Streets of Bever. CON ENTIAL Regraded Unclassified CONFIDENTIAL 84 3. & British. there - - vegesto of Britten circumst leases. n I Hight of May 2-3. - plane - shot - w entistreved's units and - was brought down w British might fighters. s Malta. Britten planse based a Shite curried ont a resd an as Anda I 1 I I Auto I s I a a I ⑉ destroyer - three - boate damaged and - - bent mak. n Libya. M British fighter planse - - the city as potrol daty. Brittsh benbers carried our ratão on Aste cirficide and engely gotate at Assess, Denine and Bengast. 5. 1 a Mite. a total of 35 - planse - used in - attack a the toland end sis other - planse took part in another ress. dair elight I 1 I I b Labya. I I i dre I 1 1 I I in an attack a Tobruk. 6. s British. there - m regarts of British aircraft Leases. CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 85 w Auto. w Aste plane taking part in the atteck m Milta we - I I I s I # I 1 ! To A smil muster of Imagi airplance attached the Hobbandya I 1 s I I 1 1 I I I our a raid an the Zuegi Artillery positions from which the Hobbondya sirficiA to being challed. - Distribution: Secretary of for state Department I I r Unior Secretary of Mer Chief of Staff Asstatemb thisf of Staff, 64 - Theme Division Office of livel Intelligence Air Garge + CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 79 Paraphrase of Gode Goblegram Received at the Var Department at 08:12, May 4, 1941. Lendon, filed 14:20, May 4, 1941. 1. British Mr Activity ever the Gentinent. A. Deylight, May S. Feur fighter missions were performed over Occupied France, and bonbers attacked and sunk one Aris freighter and one trawler. Another freighter was set on fire. a. Night, May 2-3. Hamburg was heavily bombed by a large number of planes, and lighter attacks took place over Inden and Retterdam. Five Havees attacked airfields in Occupied France. 2. Garman Air Activity over Britain. & Night, May S-4. Liverpoel harber and vicinity was again the principal target of German attack, other planes being active over London. 2. Deylight, May 3. German air activity was on a reduced scale principally ever the Thames Estuary, Cardiff and the coasts of Yerkshire, Dorset, Deven and Kent. 3. German Air Leases British Theater. Hight of May 3-4. Night fighters shot down three German planes and damaged a fourth. CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 80 4. British Mr Activity Middle last Theaker. Meter transport in the visinity of Deraa was bembed w British planes as was also the harber of Bengast. Bembers and fighters attacked 100 moter vehicles in the vicinity of n Men and destroyed thirteen. Many more were damaged. 5. German Air Activity Middle last Thester. 2. Libya. Deylight May 3. Air operations were confined principally to air trans- port flights. 6. The fellowing is British Military Intelligence informa- tion reseived to 07:00, May 41 & Libya, May S. British artillery broke up an Axis consentration of tanks and Infantry at Tobruk. Further extensive operations on a large scale are expected, 2. Iraq, Daylight, May 3. The Iraq forces which have attacked Habbaniya airport are still in position en the height surrounding it sad are shelling the British defenses. Casualties to the British are about 40 and two planes have been destroyed en the ground. The Iraq ferees have seised Rutbah, Kirkuk and Baiji on the pipe line to Maifa. In the visinity of Basrah the British have driven the Iraq ferees back from CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 81 the airport, the power station and the docks. British benbers have destroyed few pioces of Ireq artillery in the defense of Kabbaniya, LES Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of Var Chief of staff Assistant Chief of Staff, 6-2 Var Plans Division Office of Naval Intelligence Air Corps H 4 CONFIDENTIAL. Regraded Unclassified 86 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 8, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Summary of Military Reports England The Port of London 18 still operating though on & reduced scale. Out of thirty shipyards noted, one-third were serviceable. Warehouses had been damaged by fire. There were no sunken ships to be seen. From a tour of the East End of London, the most outstanding impression received was the absolute refusal of the laboring copulation to be discouraged or terrified. (London, Military Attache, May 5) Greenland The Germans are concentrating troops and ships at Kirkenes in northernmost Norway. This may be for an invasion of Greenland (or Russia). (Helsinki, Military Attache, May 6) Spain The French believe an attack on Gibraltar is impending. A trainload of German "tourists" with anti-aircraft guns and spare parts for Stukes has recently entered Spain from France. (Vichy, Naval Attache, April 26) According to the Spanish Military Attache in London, Spain could offer no effective resistance to passage of the Germans if they wish to move through Spain. He believes the Germans could reach Gibraltar in 48 hours from France and shortly thereafter close the Straits to ships by artillery fire. (London, Military Attache, May 5) Russia On April 27, 2,500 German soldiers, two armored cars, tractors, motorcycles and motor vehicles landed in Finland. (The Finns state that only 1,500 unarmed German soldiers landed in transit across Finland.) Regraded Unclassified 87 - 2 - Division of Monetary Research Finnish military authorities anticipate a German-Rus sian clash. Other sources doubt the sincerity of the German promise to assist Finland against Russia. (Helsinki, Military Attache, May 6) Military circles in Romania believe that the next German move after the Turkish question is settled will be in Spain or against Russia. The indications are that it will be against Russia. The German military base was established in Romania primarily against the Soviet Union 88 the Germans, until recently, did not believe they would have to fight in the Balkans. The scale of German preparations in Romania can only be directed against Russia: there are twelve divisions in Moldavia alone. According to the French Air Attache in Bucharest, the Poles have been offered an independent Poland if they will cooperate in 8. war against Russia. Finland end Sweden will cooperate. The main attack, it is believed, will be along the line Warsaw-Moscow, secondary attacks through the Baltic against Leningrad and from Romania towards Odessa. The earliest date mentioned for the attack 1s May 15. Our military attache, however, believes this to be too early. (Bucharest, Military Attache, April 25) Turkey An important Turk stated that Turkey is directing her efforts to preserve herself from partition between Germany and Russia. The English have lost considerable prestige and acquired the reputation of being lavish in promises but stingy in help. A well-informed Englishman in Ankara states that he has little hope that Turkey will take part in hostilities. The German conquest of the Greek islands leaves only three ports available to the British in Turkey and these have relatively small facilities for shipping. (Ankara, Military Attache, May 3) Syria According to a French official, there are only 25,000 soldiers (white and colomial) in Syria with 8 limited supply of munitions. (Ankara, Military Attache, May 3) Regraded Unclassified CONFIDENTIAL 88 Parephrase of Gode Cablegram Received at the Var Department at 09:19, May 5, 1941. London, filed May 5, 1941. 1. In conversation with Colonel Barra, Spenish Military Attache here, I was informed that Spain has se interest in entering the war but has not enough armed force to oppose the passage of Germans if and when they elect to nove through the country. Gelenel Barra is an ex-Artillery efficer with Military Intelligence experience. No is of the opinion that the Germans could reach Gibraltar with artillery from their present concentrations in the region of the Pyrenses in 48 hours by read. Within a short time thereafter they could day the passage through the Straits by employing mobile medium artillery from gun positions other them Gibraltar. 2. On May sd I made a tour of inspection through the last Mad of Lendon which had again suffered severe damage in the recent heavy air raids. Thousands of homes of laboring class families have been ruined and other thousands will require repair before they can w need as living quarters. The mest outstanding impression one received is the absolute refusal of the East Ind laboring population to be discouraged or terrified. The only exception to this is that a majority of Jewish shops have been evacuated from Stepmay. I talked with an Mr Raids Presention Controller who is a Scotch Preskyterian Minister with an last Rnd pasterate. He denied that there was any evidence of subversive or defentist activity in this district where it would naturally be expected. Be said that any CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 89 agitators that night have existed at the beginning of the was have either been run out or have changed their views in the course of air raids and bombing. 3. In the course of a tour of the dook area, 10 was noted that out of thirty shipyards one-third vere serviceable and from them large freighters were unleading. One of these was a wheat ship which was discharging into elevators which had not been damaged. There were two laden with American steel. Mush damage W fire had been done among warehouses but there were 20 sunken ships to be seen and 11 is evident that the Port of Lendon is still operating although on a reduced scale. LES Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of Var Chief of Staff Assistant Chief of Staff, 0-3 Var Plans Division Office of Naval Intelligence 0-3 G-4 CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 90 Paraphrase of Gode Rediegram and Cablegram Reseived at the Mar Department at 19:17, April 25, 1941, and 9:34, April 26, 1941, Respectively Visky, filed April 25, 1941. Visky, filed April 26, 1941. French opinion holds that attack on Cibralter, with Spanish aid in Peninsula and in Spanish Mercase, is inpending. From efficial seurce we are informed that a trainload of "tourists," with certain anount of Antiairsraft Artillery and Studen spare parts, entered Spain from Mendaye recently. JUANT Distribution: Secretary of Mar State Department Secretary of Treasury Under Secretary of Var Assistant Chief of Staff, 6-2 Var Plans Division Office of Naval Intelligence CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 91 Parephrase of Code Rediagram Received at the Mar Department at 10:14, May 6, 1941. Helsinki, filed 14:48, May 6, 1961. Three special daily trains transported Comma treeps and supplies to reilheads from landing ports. & Ayril 27th, s German shipe discharged 2500 treeps, two surred care, tracters, 60 meterayeles, meter vehicles. Finnish military authorities anticipate clash uses. Concentrations of German treeps and vessels at Kirkenes can be directed against dreenland. Other sources doubt sincerity of German premise to assist Finland. Distribution: Secretary of Var State Repartment Secretary of Treasury Under Secretary of Var Chief of Staff Assistant Chief of staff, 6-8 Var Plans Division Office of Neval Intelligence CONFIDENTIAL Regraded Unclassified 92 CONFIDENTIAL Paraphrace of Code Cablegram Received at the Var Department at 15:33, April 25, 1941 Dusharest, filed April 24, 1941. Having settled the Turkish question either diplematically OF w military neasures, the next nove w Cermany will be in Sysin or against Russia. Indications here continue that 10 will be against Russia. I as still of the opinion that the Gorman military base was established in Runnia primarily against the Seviet Union as the German until recently did not believe that 10 would be assessary for them to fight in the Balkans. At present there are 12 Gorman divisions in Meldavin. Preparations on such a scale can be directed ealy against Russia. the movement of German treeps into Rumania continues and Remanian units are being shifted to the east. New playing a lone hand, I have lest count temporarily of the member of German divisions in Runanta proper. Military thought in Busharest believes the German operations will be as fellows: (1) Main effert direction Wayeaw-Nessev; (2) nove through the Baltis against Leningrad; and (s) from Rumania towards Odessa. Finland and Sweden will cooperate. A Swedish Military Attachs has been appointed for the first time to Pusharest. While the German army noves across them, Slevakia. Mangary and will defend their respective frentiers. The French Air Attache here reports that the Peles have been effered a small independent Peland if they will cooperate against Russia. CONFIDENTIAL 93 CONFIDENTIAL the earliest date mentioned here for the opening of this campaign is May 15th. to no this appears much too early. I believe that before an attack will be lamehod meet of the German attack divisions will be brought to Rumain from Greese and Tugeslavia, unless of course Germany has - as yet undisclosed employment for her forces in the eastern Nediterranean. RATAY Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Assistant Chief of Staff, 6-3 Mar Plans Division Office of Naval Intelligence CONFIDENTIAL 94 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 9, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Summary of Military Reports Crete British Military Intelligence 1s of the opinion that an attack on Crete may be expected at any moment. (London, Military Attache, May 3) Syria The axis mission in Syria is reported to be preparing an airfield for large scale use, presumably for air-borne German troops. The French commander in Syria intends to resist attack but the morale of his soldiers is low. (Total force, 25,000 with limited munitions) (London, Military Attache, May 3) Russia According to a well-informed German officer in Moscow, the German diplomatic and military moves regarding the Soviet Union are all bluffs. The purpose appears to be to hold Soviet troops stationary and to force future concessions to Germany. (Moscow, Military Attache, May 6) German and Romanian troops are concentrating on the Russian frontier. Unofficially, it is reported that there are 18 German and 14 Romanian divisions in Moldavia (600,000 men). Maps of Bessarabia and southern Russia have been issued to the Romanian troops. All factory equipment is being evacuated from the border areas. The oil town of Buzau 18 being guarded by 200 German planes. The Romanians have refused to permit the American military attache to visit Moldavia and Constantza (seaport where concentratione of German troops and shipping have been reported.) The Russians are likewise evacuating all supplies from south Bessarabia according to refugees. (Bucharest, Military Attache, May 6) 95 - 2 - Division of Monetary Research According to an excellent source, two German panzer divisions are moving through Vienna towards Poland. (Berlin, Military Attache, May 7) (Comment: We have received reports now from every capital on the western border of Russia - Bucharest, Budapest, Berlin, Helsinki - telling of German preparations against Russia. The only counter reports have been from axis sources in Moscow - that the preparations constitute a bluff and a lone report from our Budapest attache that he does not believe there will be an attack soon. It might be possible to dismiss the opinions of the axis representatives in Moscow 88 8 part of the plan designed to lull Russia off guard. In my personal opinion, it 18 not likely that Germany will invade Russia now. The invasion may come later and the present maneuvers can, therefore, be regarded as equivalent to the two German rehearsals against Belgium and Holland in November 1939 and January 1940. There are two reasons why an attack on Russia is not an immediate possibility. The first 18 that there has been no propagenda campaign of preparation. The propaganda-wise Third Reich did not attack even Yugoslavia without such 8 psychological preparation. The second reason is that the Germans have been consciously attempting to avoid their mistakes in the last war - one of the most important of which was 8. war on two fronts. It is possible that they will duplicate this mistake. The most likely explanation for the German preparations against Russia are that Hitler 18 attempting to frighten Russia and to force her to abandon her recent policy of opposition - the Yugoslav Pact, banning the shipment of arme to Japan. It is possible that Germany may over-estimate Russie's fear of war and 8. war may still develop.) Yugoslav-Greek Campaign London estimates the Germans used 1,050 combat and 450 transport planes in the Balkan campaign. 100 planes were destroyed or damaged in aerial combat. One-half of the air forces were probably unserviceable at the end of the campaign. The Germans had 65 divisions (over 1,000,000 men) in the Balkans and used 32. Casualties inflicted by the British alone probably totalled 25,000. Regraded Unclassified 96 - 3 - Division of Monetary Research If the German troops now being transported out of the Belkans are to be used for an invasion of England, they will not be ready for six to eight weeks. Hitler probably minimized the casualties in the Balkans because of the apathy of the German home population towards the continuous military campaigns, each time in more distant areas. (London, Military Attache, May 7) The Italians, likewise, believe that the reported German losses are lower than the facts justify. (Rome, Military Attache, May 6) 97 SECRET By authority A. C. of S., 0-2 Puraphrase of Code Cablègren Date MAY 8 1941, Reserved at the Var Department Initials at 7:58, My 3, 1941. London, filed 15:10, May 3, 1941. 1. Ima- From courses considered authoritative information has been received that the present doverment has asked for aid from the Axis. It so also reliably reported that the Azie mission in syria is propering an airficid there processbly for early large seale see, which British Military Intelligence is of the eginica will be for air-borne Cerues troops. The Commission of the French forces in Syria case that way Ants attack will be resisted but the marale of his troops is considered low. 2. State- British Military Intelligence was, as of this morning, of the eptaten that a attack - Crote my be expected at any consult. 3. - up to 15:00, May 2a, the Outer Defense Lines had been penstrati w w - teaks, of which three had been destroyed by Holotov cestails, four by British task attack, and four w since. British lest by energy notion few crateer onl , Infectry tents, , Infentry tasks were lest by mechanical failure. Artillery five we successful during the day of May 2 in breaking up as attack by 30 Summan medium tomico and two companies of Infontry. d British Military Intelligance expects that the Garwan operations is Litys will seen be a an increased scale. Reinforements in - and SECRET Regraded Unclassified 98 SECRET I I I had I s z 1 1 are $ the 15th Division is being moved into the formet. areas. % I a $ 1 I 2. I areas of Lityn have been increased. and to - thought that 3,000 w 4,000 0 1 z 3'000 1 i s I % 1 8 and 1 2 I 1 1 1 use Distribution: Secretary of - State Department I r Valor Escretary of w thief of Staff Assistant thief of Staff, 6-8 Ver Plans Division Office of Havel Intelligence Air Garge = SECRET 99 CONFIDENTIAL Paraphrace of Code Cablegram Received at the West Department at 13:20, May 9, 1941. Lendon, filed 18:00, May 7. 1941. 1. The following is submitted in server to your request for information in regard to German lesses and treeps engaged in the Balkan Campaign. Air authorities here estimate that the German strength is planes during the campaign was about 1,050 combat and 450 transport. of these they claim that 100 vere destroyed or damaged exclusive of those lost w reasen of fire from ground treeps. They estimate that ene-half of German sir forces were unserviseable w the and of the operation. 2. Their estimate of casualties smong German treeps covers only these exused w British treeps. This figure they place at 25,000. Although they admit that 10 is impossible to verify because of the constant retirement to sussessive positions. In spite of nevember reporte of extremely covere ensualties among the German, I believe this figure should be reasonable. s. It is the opinion have that German casualties were nininised w Mitler because of the spathy of German public opinion toward continuous military compaigns, each time in more distant areas. Everyone with when I have talked who has returned from Germary has speken of this spathy. 4. There is evidence that the surplus treeps used in the Greek campaign are being evacuated vestrurd for employment in the next operations - possibly in as invasion of Regland or possibly passage through Spain. If the objective is an invasion of the United Kingdom, CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 100 10 would require a preparation period of a month and a half to elght weeks. 5. Reports on these operations which have been received through the period covered by then and from all sources indicate that there wase available to the Gornana throughout the whole area of the Falkens a minimum of as divisions. About = of those were actively employed. 6. The only positive identifications made w the British as facing their units in cembet are as follows: Armored divisions; the Second, Fifth and Winth. Mountain divisions; the Sixth and possibly the Fifth. There vere in addition facing them the Adelph Mitler ss Division and as Infortry Division not identified. LMN Distributions Secretary of Mar State Department Secretary of Treasury Under Secretary of Ver Chief of Staff Assistant Chief of Maff, 6-2 Ver Plans Division Office of Navel Intelligence Assistant Chief of Staff, (-3 Air Corps CONFIDENTIAL 101 CONFIDENTIAL Paraphrase of Code Cablegram Received at the War Department at 8:00, May 7, 1941 Moscow, filed May 6, 1941. German diplomatio and military noves re U.S.S.R. at this time are all bluffs according to a statement of a well-informed German colleague. The purpose appears to be to force future concessions to Germany and hold Soviet troops stationary. YEATON Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff War Plans Division Office of Naval Intelligence CONFIDENTIAL 102 CONFIDENTIAL Purepheress of Code Cablogram Received at the War Department at 9132, Megr % 1941 Busharest, filed May s 2942. 20 Geresa troops have been noving from Bulgaria through # any part the I Taxt 1 Rusendem General Staff has categerically refused permission to the military attachs to visit Moldavia and Construct. 2. Unsfficial sources report 18 German and 14 Remarden divisions and several hundred German planes are - in Meldevin. There are mid to be 200 German planes of the latest type in - Mage of Benearable and mouthern Russia have been issued to Rumanian trueps, All machinery and other fastery equipment have has ordered emounted from Galate, Braila, Tessy and Rusk. Refugees my the Russians are evacuating south Ressarabia and are taking everything from rails to deer handles. RATAY Distributions Secretary of War State Department Secretary of Toessury Under Secretary of War Chief of Staff Assistant Chief of Staff, 0-2 - Plans Division Office of Navel Intelligence CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 103 Paraphrase of Code Radiegram Received at the War Department at 10:16, May 7, 1941. Berlin, filed May 7, 1941. Italian troops have occupied the islands of Amergee, Anaphe, Ios, Thera, Maxes, Pares. One purpose of these occupations is to secure the use of the commercial water route from Trieste to the Black Sea. I have learned from a source which I consider is excellent that two German armored divisions are moving through Vienna in the direction of Poland. PEYTON Distribution Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence CONFIDENTIAL Regraded CONFIDENTIAL 104 Parephrase of Gode Cablegram Received at the Var Department at 26:30, May 6, 1941, Rome, filed May 6, 1941. In reply to your telegram membered 477. the statements made w Herr Mitler in his recent speech with regard to the German treeps used in the Balkan campaign correspend closely to reports previously made here. It is generally hold here, however, that the German lesses, as reported, are lewer than the facts justify. fisht Distribution: Secretary of Var State Department Secretary of Treasury Under Secretary of Var Chief of Staff Assistant Chief of Staff, 0-2 Var Plans Division Office of Naval Intelligence CONFIDENTIAL 105 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 9, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Weekly Military Report: Relative Strengths in the Middle East Summary The British probably have at least 200,000 men in Egypt and Crete, with a total of almost 500,000 in the Middle East, according to Churchill. There are various estimates of the axis land strength from 120,000, by our Cairo Attache on April 25, to 460,000 by our Rome Attache. The most likely figure is 150,000 to 200,000 men. We have no complete information on the total tank strength of the two sides. The axis has at least 600 tanks, while the British probably do not have more than 250. The British now have around 250 airplanes in Egypt and Crete, with an additional 200 at Takoradi, mostly unassembled. The axis sppears to have 400-500 planes in Libya with another 1,000 planes elsewhere in the Middle East and an additional 1,600 to be made available. I. Land Forces A. British Churchill announced that the British have almost 500,000 men in the Middle East. In the middle of April, the British had 50,000 men in Egypt and Libya. Since then, four troop convoys have arrived and possibly 8. fifth. These convoys have probably brought in at least 100,000 men. 50,000 soldiers were evacuated from Greece. The minimum number of troops in Egypt and Crete would be, therefore, 200,000 men, not all of whom are available for 1m- mediate duty. The garrisons in Palestine, Sudan, Aden and other Arabian ports, the fighting forces in Italian East Aprica and Iraq, altogether should total over 100,000 men. This leaves 150,000 to 200,000 men unaccounted for. Regraded Unclassified 106 - 2 - Division of Monetary Research While there have been no recent figures on the total British tank strength, it is not likely that the British would have more than 250 tanks in Egypt. As late 8.8 three weeks ago the British had only around 50 tanks in the western desert. B. Axis The estimates of the strength of the axis land forces in north Africa vary widely. The lowest was that of our Military Attache at Cairo on April 25, based on British sources, which out the figure at 6 divisions or 110,000 to 120,000 men. The highest was that of our Rome Attache who stated that there were 23 divisions in north Africa or 460,000 men. The most likely figure 18 150,000 to 200,000 men. In any case, the lowest estimate of the axis tank force in north Africa is 600 tanks. If the Italian source of six panzer divisions is correct, there would be around 2,000 axis tanks in Libya which seeme to me to be somewhat fantastic at the present time. Axis Land Forces in North Africa (According to different sources) Rome Berlin Vichy Cairo (May 2) (May 6) (May 3) (April 25) German divisions Panzer non 4 2 2 Motorized 4 1 Infantry 1 4 - - Total 8 12 3 2 Italian divisions Panzer 1 Motorized 2 4 Infantry 12 - - - Total 15 8 09 4 - - - Grand Total 23 20 11 6 Grand Total Men 460,000 400,000 220,000 120,000 107 - 3 - Division of Monetary Research II. Air Forces A. British A Western Desert Air Command under Air Marshal Tedder is being organized. This will comprise eventually a fighter wing (about 200 planes), & bombardment wing (about 100 planes) and an army cooperation scuadron (perhaps 150 planes). On April 25, the British had only slightly more than 200 airplanes in Egypt and Cyprus. (The total now would probably be around 250). In the whole Middle East the British had, on April 25, 695 airplanes. 215 of the total were still at Takoradi, mostly awaiting assembly. Another 217 were thoroughly obsolete (eight years old and older) and can only be used against Iraquis and similar opposition. Approximately 60 airplanes were located in Malta. The Royal Air Force plans to put a squadron of Curtiss Tomahawks in action on May 10. The Royal Air Force in Egypt now has about 50 Tomahawks and 15 Tomahawks are expected to arrive in Egypt every week from Takoradi. The generator correc- tion to the Tomahawks suggested by Washington appears to be working out very well. The Glenn Martin Maryland bombers have been operating efficiently on scouting and bombing missions for a number of weeks. Distribution of Royal Air Force in Middle East on April 25 Egypt and Crete Fighters Hurricanes 43 Tomahawks 20 Total Fighters 63 Bombers Blenheims (also used as fighters) 55 Wellingtons 70 Martins 16 Total Bombers 141 Total - Egypt and Crete 204 108 - 4 - Division of Monetary Research Malta Fighters Hurricanes 29 Bombers Wellesleys 11 Martins 5 Total bombers 16 Miscellaneous - Sunderlands, Valentines, etc. 14 Total Malta 59 Aden, Iraq & Sudan Miscellaneous Obsolete planes (Vincents, Harts, Gauntlets) 217 Takoradi Fighters Tomahawks - total 148 (Unassembled 142) Hurricanes - total 20 (Unassembled 19) Total Fighters 168 (Unassembled - 161) Bombers Blenheims - total 28 (Unassembled 21) Martins - total 19 (Unassembled 18) Total Bombers 47 (Total unassembled - 39) . Total Takoradi 215 Grand Total - All Middle East 695 109 - 5 - Division of Monetary Research B. Axis Air Forces We have had various reports on the axis air forces in the Middle East. While the range of estimates is fairly wide, there is some agreement among them. In Libya, around May 1 the axis had 400 to 500 combat airplanes, not including 100-200 troop transports. About half of these airplanes are German. The German airplanes in Libya are apparently a part of the Sixth Air Fleet operating in the Mediterranean and totalling 1,600 airplanes (600 pursuit, 400 Stukas, 600 other bombers). This information coming from our Military Attache in Berlin agrees, in the main, with the estimates at Cairo. According to Rome and Berlin, however, the Fourth Air Fleet, which operated in the Belkans, will also soon be made available for action in the Middle East. The meximum air strength that the axis will dispose of in the Middle East, according to these reports, will be over 3,000 airplanes. However, it is doubtful whether anything like this number can actually be brought to bear on any one front in view of the number of air bases that would be required. 110 TREASURY DEPARTMENT E INTER OFFICE COMMUNICATION DATE May 12, 1941 TO Secretary Morgenthau FROM Mr. Kamarok Subject: Summary of Military Reports England During the German attacks on Belfast the night of May 4th, the HMS Furious (sircraft carrier) was damaged. On the night of May 5-6, 440 German planes attacked England. 390 of these were heavy bombers carrying 1-1/4 tons of bombs each. Turkey-Russia There is 8. report from official Romanian sources that German troops will enter Turkey, with her consent, on about May 10th. The troops will penetrate to the Iraq oil fields and to points south and north of the Caspian Sea. As a result, the action (war?) between Russia and Germany should occur in June at the latest. (Bucharest, Military Attache, May 8) The German army concentrations on the western Russian frontier still exist. The Germans now have the following troops in areas adjacent to Russia: Divisions Finland 5 East Prussia 20 Posen area 20 South Poland 24 Slovakia 10 Moldav 12 Total 91 Divisions (1,800,000 men) (This report, if accurate, represents a slight decrease in the German concentrations except in the case of Finland. The preceding report showed 3 divisions in Finland.) 111 - 2 - Division of Monetary Research Troops were embarked at Konigsberg on April 30th for an unknown destination (Finland?). A Seventh Air Fleet, it is reported but unconfirmed, is being formed in the Baltic Sea district. Troops are being withdrawn from Yugoslavia and sent north and northeast. (Berlin, Military Attache, May 6) Libye-Egypt British do not intend holding against major attack any positione west of Mersa Matruh. (Cairo, Military Attache, May 4) Seventy-eight air fields now exist between Alexandria and Mersa Matruh, others are being made ready. Shipping between Italy and Tripoli 18 being attacked by air, sea and submarine. Attacks on Tripoli have been only slightly successful in destroying port facilities. The British fleet at Alexandria is now unbalanced and with an excess of heavy ships over light. This 1s due to the fact that the recent loss of three destroyers (in the evacuation) has not been made good. The Fleet Air Arm is also below strength because of modifications being made to airplane engines and the necessity for the installation of arrester hooks on the Brewsters. (Cairo, Military Attache) Spain According to Belgian airmen, the Belgian consul at Vigo, Spain, states that there are two divisions of Germans not in uniform along the north Spanish coast. The Germans have sub- marine bases in the Spanish ports of Pontavedra (just north of Portugal) Gijon and San Sebastian (both on the Bay of Biscay). Small German submarines are being carried out to 888 in Spanish ships. (Lisbon, Military Attache, May 8) Germany The Germans have been testing tank-carrying airplanes and 12-seater and 25-seater towed gliders. Regraded Unclassified 112 - 3 - Division of Monetary Research Balkan Campaign Our Sofia and Bucharest attaches believe Hitler's figures on troops used and casualties in the Balkan campaign are correct. (Bucharest, Sofia, Military Attache, May 8) An important part in the campaign was played by the S.S. Regiment Adolf Hitler. These are picked Nazis, well trained and well fed. Use of the drug Pervitin probably accounts for the astonishing endurance of these men. German aviators are definitely known to take this drug in tablet form. (Bucharest, Military Attache, May 8) Regraded Unclassified 113 CONFIDENTIAL Persphones of Coblegram I 8 $ at 20139, they 4, 1941. Lenson, filed 16:00, My " 2041. 1. a s 1 h s Operations constated misly w effentive patrols against I 1 1 I a 1 I à Hight of the 9-4. I AUM I 3 I I I 1 I I 1 1 I 1 I $ I I I I 1 I I I I I chipping one the parte of Statemer ost a. Insure and the complano base at Secture. I e. a Hight of May 4-7. face egain the - attache - a a Large omie - streets principally at and with very mail attache - Smot 1 I I I 1 is Hight of they 3-6. In all, we Gorman planse attached Evitate. three hundred ninety of three ware long reage benbere each of which 10 to estimated corried. - and one-fourth - of benter (including inconding). a $ 8 I During the attache - Britein this might, - please damaged m survive as Delfact. CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 114 3. Aircraft Leases Brittich Thenter- a British. In all of the air operations during the night of My 3-6 as Hritish aircraft - lest. w I Too German planes were destroyed and - damaged. w R.A.F. planse operating over the Chemacl. The Intest figures a Common plane leasee a the night ef Hap 5-6 are 8 destroyed and 1 damaged to might fightore, I z of of 1 4. s Egyptica theater. Britten planes based in Nevert attached Bengast hearber and sixtrames at Dorne, Baree, Gasala and Demina. Ab Senise at least , Aste please www destrayed - the ground. Anto Alagi was also benied and committen I é I in British planse continued their attacks a Tregs - treepe and please. 5. Thirty-six Gorman planse benefed. Lugan airdress a Malta. Sixteen Getwen planse staged a dive booking attack an Brittish chips to Sala Day, Crote. One Britten vassel we struck and beached. 6. Aircraft Leases. a British. 1 I I a + CONFIDENTIAL 115 CONFIDENTIAL - Acts. 2a the attack m Halts a place - dectroyed and in the abteck a Grate a others www destroyed má , damgos. 7. Activities- $ I re I $ I Internal I I ! Scllum to Haldays bot discovered M - treeps. - I I I I 1 I a 6 a Undegen (spprentmately 40 adise morth of Sughellt). s $ I I un I They 1 r 1 I the situation areas& Income is without activity. British relaforcemento á I I a. Activities. s Britten extension attached. end and 3 Asis vassels off Island. a British hespital ship maradara - benked - not aftre I I 1 I I w I 1 i II the following is a eventy of Britten Milltory Intelligence information to THIS am, May 7: Little estivity in the violaity around Totwait with the carrytian 1 of , r I 1 I are - Distributions Secretary of Mar w ( Time Division State Department Office of Intelligence I I % Ate Gurge Valor Secretary of Ver 3 Chief of Staff Acutstenh Gated of Staff, 6-2 + CONFIDENTIAL Regraded 116 CONFIDENTIAL Paraphrase of Gode Cablegram Received at the War Department at 13:51, May 8, 1941 Bucharest, filed May 8, 1941. I - unable to verify a report from an official source which states that German troops will enter Turkey, with her consent, on about May 10th. The troops will penetrate to the Iraq oil fields and to points south and north of the Caspian Sea. As a result the action between Russia and Germany should occur in June at the latest. RATAY Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence CONFIDENTIAL Regraded Unclassified CONFIDENTIAL - 117 Persphrance of Code Rediagrem Received at the at 22:30, My 6, 1941. Berlin, filed May 6, 1941. 1 # I I I s I I £ Type) I I 1 I 1 destination An unsenfirmed report inticates a 7th 7th Air Flest composed of land and ⑉ planes is being femad in the Bultis Son district. There are in Finland 5 German divisions, that Pressia 20, Labilin 12, South Foland 240 Slevakia, 20, Person area 20, Malden 12 and increasing. PHYTON Distribution Secretary of Yes State Department Transmy 20 Under Secretary of Mar Chief of Staff Assistant Chief of staff, H Yes Flame Division office of Noval Intelligence CONFIDENTIAL Regraded Unclassified SECRET 118 of S., 0-2 of Code Cahlogster Received st the - Dat MAY 9 1941 ( BPH, ) of 9:33, they % 1961. Initials cadare, filed they 40 1941. 1. In - to your imprixy of Agril so in reguest to cirfields and British Intentions, planse be advised that I - senting the - you requested. 2. the British do not intend to hold against major attack my positions west of Mark Materwis. 1 1 I $ I 1 M & I time w air mill w planing them in the I of & ship expende bound for Singapore who will give them to Captada of the Clipper at that point provided arrangements ⑉ be rade n your and with Please 1st m know if you desire this to be dams. 4. In the following information concerning airfields, I - and w cable the constinates of all sites if you wish. 1 I % There extet at present 38 fields - ready for operation, the meet important of which are as - and Falm. South. Contering en a point w miles south of Falm there is & group of six fields. M n Daba and in a adrels within 20 miles of that paint are five others. At Days el Amb and within 20 adles are 20 fields and seven are being made realy contering about & point 30 miles southment. 6. Seventy-eight adrfialds ender espable of being used w SECRET . 119 SECRET 000 PT 000% 1 I [ B I 4 I markings). Other fields are being made ready in the area - World all Maturen. them is an emeallemt field at sus I with three mudiary fields note/ay. Other good fields are at them Misbersh with three others 20 adles to the cash and three at aqual I I I 1 I 1 YELLERS Distribution 1 r Secretary of staff, 0-2 Intelligence Chief of staff, 0-5 SECRET Regraded Unclassified 120 SECRET By authority A.C. of S., 0-2 Date MAY 10 1941 ( Re ) Paraykrase of Code Cablegren Initials Reselved at the Yes at 18:17, My 8, 1941. Gaire, filed May 7, 1941. The fellowing information gained from Teller in regard to the nevel situation in Eastern Meditervanean should be brought to the attention of our Marry. 1. Skipping between Italy and Tripali to being attacked by air, sea and submarine in - attempt to enborrase supplies. Attacks on Tripeli have been only slightly successful in destroying part facilities. 2. In replacing neval lesses, the British eruiser PHONE (5,450 teas) has judned the Flast. The three destroyers which were sunk however have not been replaced. 3. The Fleut is now unbalanced by reason of the excess of heavy force over light. This condition results in the light forees being overwarked. the Flost Air Arm is also below fighter strength - assess of medifications to engines and the installation of arrester hooks for Browsters. VELLERS Distribution: Secretary of Her State Department Secretary of Treasury Under Secretary of is Chief of Staff Assistent Chief of Staff, 0-2 War Plans Division Office of Neval Intelligence Assistant Chief of Staff, 0-3 SECRET Regraded Unclassified # 121 CONFIDENTIAL Purspherase of Code Cablegram I / $ Lisbon, filed May s, 1941. n is learned from a mumber of Belgism airms when breise out of concentration - thats - Belgian Consult at Vigo states equivalent of - divisions of Germans not in withou I I Я I 1 1 i I I a a German have subserine bases in Spenish parte of Fentavodra, olien, and - Schestians small German submerizes are being carried not to - in System ships. I Distributions Securitary r I r r 3 imm, Division Office of Nave2 Intelligence Constinating Section CONFIDENTIAL Regraded Unclassified 122 CONFIDENTIAL Paraphrase of Gode Cablegram Received at the War Department at 20:46, May 8, 1941 Bern, filed May 8, 1941. Swiss General Staff informs as follows: - Tests being made of use of 4-motored Junkers planes for carrying light tankey in April, trials of new 4-motored transport airplane with twin fuselage (machine thought to be FOCKS-WULF) were completed at Schwering at Nauhain and Brunswick, Germans have been testing 12-seater and 25-seater towad gliders. LEGGE Distributions Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, 0-2 War Plans Division Office of Naval Intelligence Chief of Air Corps CONFIDENTIAL Regraded Unclassified 123 CONFIDENTIAL Puraphaneo of Colo Cobleguen a I s at 90% my & 1041. I is I Mills I n to my optates that Mitler's statements as so the - I z I 1 8 I 1 I $ I I I s currect. Invorce, z as not believe that Bitler instated in his figures. I I 1 s & I 1 I for $ s mybel the operations against Terms, in - much notion because accountry. I I 1 any a 1 I I 1 Decharant renomed that the - casculties is this compuign ensented w only about 1000 milled. there was naturally much actentainent onl die- cussion about this figure. the in excellise opposer almost unbeltevable, but - offices at Restaurant potal one that, with the str force feanling the your creas, end with consret. and specialist write construbly pushing surver, corporteing Authorize 1 I I $ r I a 1 ₫ I $ I $ notor w and - engaged. solely in negging w operations. A very inportent part vie played in the compaign w the "Specialist Treepe", the s. s. Registered NNW This unit to ovidently the - half division" montioned in Mither's speech. the - I I I I the the a il % $ Regialism, will tratest, onl fed and medically enred for to the - my as American football players. 14 to mintained in - eircles have that this east personnen may occret 20 is w belief that the dong CONFIDENTIAL 124 CONFIDENTIAL I I I a 1 I accounts w the cotenishing minume of these me. I consinsurely that - artaters take this I I is their 1 in 1 I Distribution: of I = Intelligmes the CONFIDENTIAL Regraded Unclassified 125 CONFIDENTIAL Paraphrase of Gode Cahlegram Reserved at the Mar Depar Department at 14:07, May s, 1941 Sefin, filed 19:00, May a, 1941. This cable in - to eable one this office which requested opinion ⑉ Hitler's speech of May 4a - estimate of German twoops employed in Balhams and - estimate of - leases. n is the opinion of - Attache, bis colleagues and others that speech - propagando and that figures for empaign class to correct. Seven w eight German divisions were employed against Greeits and British. One estimate of German killed and wounded is 25,000 based 00 information considered relishle which - obtained from colleagues, a mumber of dectors and a Genera General, JAINTH Secretary of Mr State Department Secretary of Treasury Under Secretary of Yes Chief of staff Assistant Chief of staff, 6-2 Mar Plans Division office of Nevel Intelligence Coordinating Section CONFIDENTIAL - 126 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 13, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Summary of Military Reports Greenland, Iceland, Spitzbergen The Germans may be preparing an invasion of Greenland, Iceland or Spitzbergen, According to the Norwegian Minister in London, three German crack divisions are concentrated in the Kirkenes-Tromsoe area of north Norway and transports have been observed off the coast. (London, Military Attache, May 9) England The German attacks on the night of the 7th and 8th severely damaged two destroyers and slightly damaged two more. 359 bombers were sent out by the Royal Air Force on the night of the 8th and 9th. Of these, 316 bombed Hamburg. (This was the night that the British announced that their heaviest attack of the war was delivered on Hamburg.) On the same night, the Germans had 230 bombers over England. (The highest number of German bombers which I have seen reported as being used against England 18 440. In other words, England appears to be coming closer to equality with Germany.) (London, British Embassy, May 9) 127 - 2 - Division of Monetary Research German Air Force Distribution on May 3, 1941 Planes Transports Holland, Belgium and France 2,193 150 Germany 493 600 Norway and Denmark 243 50 Total Western Front 2,929 800 Balkans, Southeast Germany and Aegean 1,080 450 Africa and Central Mediterranean 411 250 Total Mediterranean Front 1,491 700 Grand Total 4,420 1,500 (Unaccounted for - the planes in Poland) (London, Military Attache, May 10, 1941) Balkans The Bulgarian railroads are being used to the utmost in the transportation of German material northward and in the direction of the Black Sea. On May 3, the Germans had 7 or 8 divisions on the Turkish- Bulgarian frontier. The Bulgarians had 10 divisions here and 4 in Thrace and Macedonia. (Sofie, May 9) Regraded Unclassified CONFIDENTIAL 128 I % I I * I e s Location, filed 24:30, my 9, 1040. 2. DATE - & a Deylighh, my & Secheme tradite off - coast we the tanget to British benbers. A his a - ship - observed. Fighter performed defensive gatual mientons in the therbourg-Orio See I sight, May 7-6- I I a I a I I I I ₫ r I HER 1 1 » 1 1 I I I playeing bester and - 900-yound www discurred. an ench. the chipping & I I I 2 z I 1 3 I I 1 I 1 I 1 - I 1 I I I I 6 of benbere as we also the ⑉ ell Borgen. a. Summa s/ Hight, the 8-9. 1 I I I I 1 I I Anglis, the Humber, one over the whole of the Midianis. A maller member of planse attached Leadon. - Deylight, May a. CONFIDENTIAL Da CONFIDENTIAL 1239 there were may offensive missions performed w - Fighters - Nont and starong patrols aparated. - the Culais-Dever are. a 1 1 1 three insured thirty-five plance took part in attacks a Britain. 3. Theaker- & British. Hight, the 7-8. I $ I ! a I I I - I 1. Hight, My 8-9. so for as has been reported to date, five Common planos I 1 , I i I I d I I of I a I 1 1 I ! # I with three probable and - damaged. m the Charbourg - - Fighter we shot down with - - probable. 3. Hight, My 7-8. the latest report of Common plano casualties - Britain indicates that se were shot 4mm with fear - probable est 15 damaged w night Fighters while an edditional three were taben out w entistreent's fire. 4. Sheater- n Beylight, May 6. 1. Rept. the broter of Hengual end airficide at Bareo, Denine I I 1 1 I z s I I + CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 129 there ware may effencive păssions performed w - Fightere over that and strong patrols agenated. over the Culais-Dever area. s Hight, - 7-8- I I I I I $ I 1 I Britain. 3. & British. Hight, My 7-8. I I 1 ! and I I I I à 1. Hight, My 8-9. so the as has been reported to date, five - planse were shot down - ⑉ damaged. w night Fighters. d I e. In - attache a Best eleven Fightere www shot down with three probable and - damaged. the the Charboung - ence)Fighter - shot down with - - probable. 3. Hight, May 7-0. the latest report of - plans casualities over Britein inlicates that se were shot - with four - probable ont 15 damaged w night Fighters while a odditional three were tabour est w subsivered's fire. 4. Brittsh Atr Activity. Zest States. 2. Beylight, - a. 1. Rept. I I I 1 a 10 I to and Barna - bented w British planos based in nort. + CONFIDENTIAL Regraded Unclassified 130 CONFIDENTIAL a. Abyuntate. 1 I I I a I 1 I 10 Aubo Alegi and - Gubain ware bented w British planse. - we a - on to bending w the Free French forese. 1 n MahiA AirficiA we bented w British planse 1 I I I I 1 a I 1 I I steas. Operations against the Reckit Airfield resulted is the destruction sit. 1 I I $ une s 5. - Back Thember- s Hight, My 7-8. I I a 1 z I % I I I I I I 1 1 I I B I 1 ank Malta - abteched w ten bentere without damage. II. the following information - been reserved. from Biddle in 1. there - - indications that - operations my be - paring for Greenlend, Zooland w Sydisborgen. a. a My 6 the Durwagism Matsber oută that be had recently THE I 1 i I 1 I n ! I - Divisions, all young first-class combob personnel, - consentated. in the - and that transporto had born observed. off that I s I I 1 # 1 / I I I I and x 1 1 1 I I s I its s I their use. Consult - provious estile a this ediject. + CONE IDENTIAL Regraded Unclassified CONFIDENTIAL m. The following to a - of Military Intelligence information 2. Libya. I a I I 1 I a I I parineter of 2. Asgrem. a / % 1 I x il 1 2 I the Italians. 5. 200g. Telegraph effices, communical buildings and beals in Seara have been compled w the British. the platoon south of Subbertya Airêveno has boom elecred of Iraqi treeps and occupied w the British. i the Commons - ingroving and colonging airficide ta Foland. - Distribution: discretary of - State Department I I r = of Staff w Mor Assistemb this of shart, 6-8 Place Division enries of Novel Intelligence Curgo + CONFIDENTIAL Regraded Unclassified 131 BRITISH EMBASSY, WASHINGTON, D.C. May 11th, 1941. Personal and Secret. Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 132 Telegram from Lendon dated May 9th. 1. Naval. Night of the 7th/8th; two destroyers severely damaged at Liverpool and two destroyers slightly damaged at Mull. 2. On the 8th one armed drifter sunk by aircraft, one minesweeping trawler mined and sunk in Estier. 3. Sues Canal closed near Kentara by mines. 4. AS Tobruk the 8th, "Ladybird" shot down two enemy aircraft. We lost one minesweeper by bomb hit. 5. P.M. 8th; 600 miles northeast of the Seychelles His unjesty's Ship "Cormmall" sank armed merchant raider and sustained slight damage and two minor casualties from two hits. 53 Germans picked up. Out of 67 British and 166 Lascars only 11 British and 16 Lascare were saved. 6. Military. Habbaniya. During salvage operations our forces have brought in armoured care, lorries and six serviceable 3.7 inch howitsers. 7. Royal A1P Force. 8th. 6 medium bombers attacked 700 tons anti-aireraft ship off Stavenger, left down by the stern. One missing. 8. Night of the 8th/9th. 183 bombers sent to attack shipyards and industrial centre of Hamburg, 133 to shipyards, mostly maller numbers to Berlin, Kiel and to attack shipping. Out of the 359 aircraft 10 did not return. 9. German Air Foree. 8th. Strong patrols operated over Dover Straits, small formations over Kent. Fighters destroyed 22 enemy aircraft and probably five more; 3 hurricanes shot down, two pilots safe. 10. Night of 8th/9th. About 230 aircraft operating mainly over Midlands and Hull. Enemy casualties - destro 11, probable 1, damaged 4. 11. Home Security. Night of 8th/9th. Hull attack/ Regraded Unclassified - 133 -2- attack severe. Docks and centre of the city again principal targets. Many fires and widespread damage. Nottingham industrial key point and public utilities not seriously affected. 134 CONFIDENTIAL Paraphrace of Opde Radiogram Received at the War Department at 16:23, May 9, 1941 Sefia, filed May 9, 1941. According to reports, the Germans have seven or eight divisions on Tarkey's Thrasian frontier. This information is as of May 3, 1941. The Germans were then occupying a some 40 kile- meters deep. There were four divisions of the Bulgarian Army in Thrase and Macedonia, and 10 on Turkish frontier. In Eastern Bulgaria no German divisions have been located. It is stated that the Bulgarian railreads are being used to the utmost in transportation of German material northward and in the direction of the Black Sea. JADWIN Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence (2) CONFIDENTIAL SECRET 135 By Date Initials Paraphrace of Sode Gablegram Received at the Mar Department at 07:47. May 10, 1941 London, filed 12:00, May 10, 1941. The table below gives the British estimate of the distribution of the German Air Force as of May 3, 1941. The breakleva of the types of aircraft will be sent by courier unless this information is requested w cable. Area m. of No. of Planes Transports Generary 483 600 Nervey and Denmark 245 50 Holland, Belgium, and France 2193 150 Africa and Central Nediterranean 411 250 Balkans, Southeast Germany, and 1000 450 Aegean - - TOTAL 4430 1500 (6-2 Note: The total of 4420 is the same as that given in an April breakdown of the German Air Ferce. No mention is made of planes in Peland.) LES Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, 6-8 War Plans Division Office of Naval Intelligence (2) Air Corps SECRET 136 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 14, 1951 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Summary of Military Reports Iraq General Wavell and the Royal Air Force command in the Middle East are urging that negotiations be undertaken in Iraq to free the air force and troops for Egypt. The Ministry of Air in London, however, demands that the Iraq Government be overthrown. The Ministry believes that no German planes can arrive in Iraq this month. General Wilson 18 forming units in Palestine for use in Iraq. (Cairo, Military Attache, May 11) On May 6, a convoy with an infantry brigade from India arrived at Basra. (London, British Embassy, May 8) England The air raid of the night of May 6 damaged John Brown's shipyard on the Clyde-side. Production was cut by at least one-third. The ordnance factory at Ardeer which was hit will have to reduce production by at least 25 percent for some weeks. (London, British Embassy, May 8) Eastern Mediterranean The Germans are now estimated to have 828 planes in the Balkans and 450 planes in the Mediterranean area. The German air force in Greece is being overhauled and repaired. There are parachute troops and air transports based on Athens. The Germans are assembling 8. fleet of small vessels in Greece. (All this would indicate an attack on Crete or a descent upon Syria.) (Cairo, Military Attache, May 11) 137 - 2 - Division of Monetary Research Bal kans In the region of the Hungarians, the Danube 16 now clear of obstructions except at one point where a ship canal is apparently available. The Danube was blocked by the Yugoslavs near the Romanian frontier and is still blocked by a combination of barges sunk in the river with a bridge collapsed on the top of them. It 18 likely, however, that traffic will be resumed in a few days past this spot. Damage occurred to the Yugoslav railroads at numerous places, it is reported. The civil traffic on the Hungarian railroads has been out one-half because of the poor state of the railroads. Over one-half of the capacity of the Romanian railroads is being used for military purposes and commercial traffic 1s thereby hampered. There has been no significant sabotage of the railroads, as far 88 18 known. In Bulgaria and Romania, all the oil tanks and resevoirs are full. The German experts are trying to raise the Romanian production of aviation gasoline from 10,000 tons to 18,000 tons & month. (Budapest, Military Attache, May 10; Bucharest, Military Attache, May 9) SECRET 138 By authority A. C. of S., G- Date MAY 13 1941 ( BPH I I r I Initials $ I d 1 I I I 2. Parting - 1 beginning New a committee in - - totalled n to the maile - theater. 1 I a s 1 i B 1 8 of 4 Commins in drosse, and - chipping continue to - - of the Mask Sea. Years the bases withhel by - in Statly and Green inMestime - - - air form to propored to - to - part of the area instruct in the from again to 2. the presence of a where of plance Stying and - discuvered w valid direction finiers at m the week m- - 2 then, mase, drote, Alumundria, and the - - 1 I I I 8 il 4. glasse have Laft the - experatly returning to - few - equipment. the sto the in Greete to undergoing and repair. so the cotimate of Governa do strength in - made - thember is an failure I 1 ⑉ I - 450 given there have been - changes observed in the motor w transport gilmes during the 1 the sir elements beend a Statey - apporantly - pared to - after from Like w the Angeen see. troups (using Spendon ansbine platella) and stor transporte - based an Athema. Doaradod - 139 SECRET 6. in additional organderen of Justice ⑉ - been - served is Ishge. 9. Airgilane recommed.comes over Tripedd revealed x freighters, - as 20mgo as 9000 - in the huber. 8. the following 1dentifications have been made about i s Postage I 1 the 27th Travela Division (Italism) the 3000 Trento Materined Division (Italism) sub Light Agreemed Division (Gurnan) 152M Artate Agreemed Edvision (Xtallan) There has been a general transfer of tank units from the Geruan 9th Light Amered Division and - 15th Accured Division in I 1 I 9. one squares of Inc answer in Alexandria my 12 for defense against daySight valide. 20 to cottrated that such defense will be required w My 24. 10. In light of the and troup requirements the the defunce of sort, stor Serve authorities to the medic must and General withed to up that be undertakens at Iraq. the Matery of Air in Landon however demands the overtime of the present Issue government. the Ministry is of the opinion that - General glance will be able to arrive in Irog this month. will a 1 $ a 1 1 $ a 1 Falestine. The latter is in the presses of of write the employments in Iraq. SECRET 140 SECRET 22. Britdsh units are being organized for the defense of Cyperes and these in Crote are being reinfereed. 13. Ireq. 20 is octimated that the Tragt sto Sureen consist of 45 first-line aircraft, w of which are serviceshile and n training planse. years Distributions r - Department Chief w staff, 4 Division Nevel Intelligence - 2 Audistant Chief of staff, 0-3. S SECRET Regraded Unclassified 141 BRITISH EMBASSY, WASHINGTON, D.C. May 10th, 1941 Personal and Secret Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, Umeo Camphil. The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 142 Telegram from London dated May 8th, 1941. NAVAL. A.P. trawler and one yacht bombed sunk home waters. 2. Hospital ship "Karapara" has arrived at Alexandris. 3. British tanker 3600 tone at 02.55/7 reported shelled by raider 340 miles Rest southeast Cape Guardafui. 4. Night of May 6th/7th. Royal Air Force claimed direct hit on 5000 ton merchant ship anchored at Terschielling. 5. Military. Iraq. Habbaniya. Night of May 6th/7th, quiet. our patrols remained on the high ground osptured which was occupied in the morning. Bridge between Ramadi and Habbaniya was blown up by enemy during the night. 6. Convoy containing one Infentry Brigade from India arrived at Baera afternoon of May 6th. 7. Ethiopia. One Itelian General and 170 Europeans have been captured at Alomata. The enemy have ovacuated Debarech (40 miles Northeast of Gonder). 8. Royal Air Force. Night of May 7th/8th: 87 bombers sent to attack battle cruisers at Breat, 15 st. Nasaire docks, others to Bremen docks and to attack shipping. Hits with one 2000 lb. armour piercing bomb and one 500 lb. bomb on each ship are elaimed. Two bombers missing. 9. Mediterraneen. on May 7th five Blenheims attacked convoy of 8 merchant ships and two escort vessela south southeast of Pantellaria. Two ships of 3000 and 1500 tons were hit. 10./ Regraded Unclassified - 143 -8- 10. German Air Force. May 7th; activity off the southeast coast. Our fighters destroyed 8 enemy aircraft. We lost two Spitfires. 11. Night of May 7th/8th. About 200 aircraft operating, mainly against Manchester, Merseyside, Hull and Bristol; 23 were destroyed, 4 probable, 13 damaged. 12. Iraq. May 6th. Three of our aircraft destroyed on the ground during air attacks in Habbaniya area. 13. Home Security. Two-thirds of the workmen have resumed at John Brown's after raid the night of May 6th/ 7th; two other shipyards at Greenoch damaged the same night. Ardeer production on military side likely to be reduced by about 25 for some weeks. 14. The night of May 7th/8th. Extensive fires at Bootle, Hull and Bristol. Regraded Unclassified CONFIDENTIAL 144 Paraphrase of Code Cablegram Received at the War Department at 16:23, May 10, 1941. Budapest, filed May 10, 1941. 1. Information available in Budapest indicates that the Dambe river is now clear of obstructions except at Gamboa just below the junction of the Prave and the Danube. At this point the river has & draught of only two meters. The normal depth will be attained in about a fortnight. The use of the ship canal at this point is unnecessary except for the largest ships, and then only at low water. The Save pontoon bridge at Balgrade is open for two periods of two hours each daily. 2. The following destructions to railroad lines are known to have occurred. 4. Railread detour of one mile around Nish. b. Railroad line at Hoplye. s. Bridge at Zemun. ₫. Long trestle at Laibach. 2. Bridge at Hungarian-Jugoslav border on Budapest- Zagreb railroad line, 3. There are reports here to the effect that Serbian bands are still fighting in the mountains of Montenegro. - 4. The Hungarian Slovaldan frontier will be closed up until May 12th. German troops are noving eastward through Slovakia. 5. The civil traffic on the Hungarian railroads has been cut by about one half. The poor state of the railroads will forbid them CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 145 to carry a much greater lead. MILITARY ATTACHE Distribution Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, 0-2 War Plans Division Office of Navel Intelligence + CONFIDENTIAL CONFIDENTIAL 146 Paraphrase of Code Radiogram Received at the War Department at 18:53, May 9, 1941 Bucharest, filed 11:55, My 9, 1941. 1. In Bulgaria and Humania all tanks and reserveire are filled and all tank cars on hand are used for transporting oil to Germany. German field troops get gaseline in mall containers filled at the refineries. German experts are negotiating for an increase of monthly output of aviation gasoline from 10,000 toms to 18,000. This would be 162,000 barrels at 42 gallons each. Therefore, 72 cotans to be leaded to 95 would have to be accepted. Shipment of synthetic gaseline for planes is to be avoided if possible. This large amount of aviation gaseline would be necessary for further action. The totalitarian leaders are pressing the oil producers to step up output. The Germans are paying the total cost of bemb protection for oil tanks. 2. I can report accurately on railroads only in Rumania. The German run service is such better than that of the Rumanians. Over half of the rail movement concerns the armed forces. Commercial travel has naturally been hampered despite the fast that rail traffic is greater than before. There are no strict railroad regulations in force new. Rail line sabotage was never of prime importance at any time. I have & report that the railroads at Belgrade, Pencevo and Novisad were torn up by the Yugeslavs. I do not know about other points and - unable to say how long the dislocation of rail traffic will continue 3. The canal was not beabed and German fire at three in the CONFIDENTIAL CONFIDENTIAL 147 morning of April 6th in the Kasan destroyed the cement leaded Tugeslav barges which were to block it. The crew and Yugeslav soldiers en guard at the canal were wiped out. I have no infer- mation on the bembing of Dubravisa and Gelubas. Transpertation on the Danube is possible below Novisad. Their barges filled with rocks were sunk under bridges which were than destroyed by the Yugeslavs. This obstacle in all probability will be cleared within a few days because oil companies have been ordered by the Germans to lead sixty barges, 600 its 700 tons each, which are new above Novisad. RATAY Distribution Secretary of War State Department Secretary of Treasury \ Under Secretary of War Chief of Staff Assistant Chief of Staff, 0-2 War Plans Division Office of Naval Intelligence Export Control -2- CONFIDENTIAL Regraded Unclassified 148 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 16, 1941 TO Secretary Morgenthau FROM Mr. Kamarok Subject: Weekly Military Report: The Size of the German Air Force 1. The total strength that the German air force could put into combat at any one time 18 probably not more than 11,000 sirplanes. The most likely figure 18 9,000 to 10,000. This figure is based on 8 number of independent estimates. According to an officer of the French General Staff, the Germans had in action about 5,000 planes on the Western Front last May. It took the Germans five years of all-out effort to attain this strength. It 1s possible that they could more than double this in one year, but not probable. Our Military Attache in Berlin reports that the Germans are supposed to be forming 8. Seventh Air Fleet. There are 1,600 planes in an air fleet, thus, according to this report, the Germans would have a total of 11,200 combat planes. Last December, I believe, the British were of the opinion that a first-line strength of 7,000 airplanes in 1941 would achieve parity with the Germans. Our London Military Attache reported recently that the Germans had 8. combat strength of 4,400 sirplanes outside of Poland. It is possible that the Germens would have more than half of their air force in Poland but I doubt it. Ae 8 maximum, then, based on our London Attache's figures, the German combat strength did not total more than 8,800 airplanes. The April, 1941 issue of the British Military magazine, Fighting Forces, estimated that the German first-line strength totalled approximately 8,500 airplanes. 149 - 2 - Division of Monetary Research 2. The total number of airplanes of all types at the disposal of the Germans 1s probably not more than 35,000. The most likely figure 18 about 30,000. According to Royal Air Force experience, the peacetime allowance of a 50 percent reserve of planes in the operating squadron 18 not sufficient. To be able to maintain a strength of 12 planes ready to take the air it 18 necessary to have 20 - 22 planes in the squadron. Since, in addition, some airplanes have to be kept in reserve in higher echelons, it 18 probably safe to estimate that a 100 percent reserve of the first line strength 18 required. To maintain a first line combat strength of 9,000 to 10,000 planes it would probably, therefore, be necessary to have a total of 18,000 to 20,000 combat planes. In addition to combat planes, an air force has training, observation, reconnaissence, army intercommunication, transport and other utility airplanes. Probably about a third, and perhaps more, of the total German air force would consist of such planes. With 8 first line combat strength of 9,000 to 10,000 airplanes, the Germans would probably have, therefore, 8. total of 27,000 to 30,000 airplanes of all types. This figure is still a high estimate. The April, 1941 Fighting Forces estimates the total number of German sirplanes of all types at 20,000. Regraded Unclassified 150 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 15, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Summary of Military Reports Hess British Military Intelligence believes that the cause of Hess' flight was 8. factional fight in the Nazi Party in which Goering was getting the better. Since Hess was the leader of a strong faction, there should be a great and widespread reaction in the Nazi Party. (London, Military Attache, May 13) England In the German raid of May 10-11 on London, the damage to war industry 18 thought not serious. The damage to docks is "less heavy than expected". Transportation was curtailed through the blocking of a number of main thorough- fares and some suspension of railway and underground service. Egypt The Suez Canal has been closed now since about May 9 by mines. The Germans are using a new type of mine which can be dropped from 2,000 feet without 8. parachute. (London, Military Attache, May 13) (The closing of the Suez cutting the main route of supply of the army in Egypt and the Western Desert 1s, of course, a serious blow to the British.) Iraq There are indications of the flight of a few axis planes across Syria toward Iraq. (M.I.D. Situation Report, May 14) CONFIDENTIAL 151 Paraphrase of Code Cablagram Received at the Tar Department at 08:02, May 13, 1941. Londen, filed May 13, 1941. I. Daily Cable, 1. British Air Activity over the Continent, ₺ Daylight May 12. Sea berne traffic in the visinity of the Skagerrak was attacked by a small force of British bombers. Some hits were claimed, h Night of May 11-12. The Coastal Command banked the mesquite fleet based at Ijmiden and the seaplane base at De Mek in Holland, Three bombers performed missions against shipping, one against the airfield at Mariguas and 10 against Disppe and Rotterdam. Major attacks however were on the scale of 92 planes over Hamburg and a over Bremen, & Right of May 10-11 British bembing sunk & German destroyer and 2 freighters while 3 other Axis conveys were attacked without results having been reported through failure of observation. 20 German Air Activity over Britsin. 4. Might of May 12-13. German air operations over Britain were on a minor seale and chiefly were single planes over Reading, Debden and Birmingham and their visinities with & small mumber attacking ceast targets between Flamberough Read and the Estuary with a few over the Bristel Channel, There was no activity reported from other theaters. be Daylight May 12. German air operations were reduced to a minimum with a for scattered planes observed over land but no raids were reported. 3. Air Vesses British Theater. CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 152 s British. (1) Might of May 11-12. In operations against use Continent four British planes failed to return, be German. (1) Night of May 12-13. One bomber was shot down by night fighters, (2) Night of May 11-12. Nine planes were shot down with two probable and four damaged in attacks on British airfields. & Night of May 11-12, The latest reports show that 310 planes were exployed in attacks on Britain with the principal concentrations against airfields. Some damage was reported to buildings and facilities but there were no serious plane casualties. 4. British Air Activity Middle East Theater, & Daylight May 12, (1) Libra. The airfields at Gasala, Derna and Denina were attacked by planes based on Egypt which also bombed shipping in the harber at Bengasi, (2) Italian East Africa. British planes heavily bombed and machine gunned Anba Alagi. (3) Iraa. All occupied positions were bombed by British planes, be Daylight May 10. A raid by British aircraft on Sicily severely damaged an airport and destroyed at least 5 planes on the ground, 5. German Air Lesses Middle East Theater. 4. Daylight May 12. Five German planes were shot down in the sourse of British attacks on Libya, -2- CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 153 II. The following is a sumary of military intelligence information to date of May 13: 1. London. Night of May 10-11. Casualties in the course of German air raids are reported as 646 killed and 1400 seriously injured, 2. British Military Intelligence expects great and widespread reaction in the Nasi party as a result of the defection of Herr Hoss, He was a leader of a strong faction in this party and it is believed the cause of his flight was that he had found himself getting the worst of it in a bitter struggle which has existed between him and Geering. It is yet too early to fully estimate the results of his flight to England but it is hoped that he will talk freely. He is now hospitalised. 3. The Sues Canal continues to be closed to traffic by mines in the visinity of Kantara and others unexploded near Station No. 13. A new type of nine which can be dropped from 2,000 feet without a parashute is now being utilised by the Germans. 4. There is no change in the situation in the visinity of Tobruk and Sellum. 5. More German agitators are reported arriving in Syria by air. 6. The situation in Iraq is more normal. LEE Distribution: Secretary of Var State Department Secretary of Treasury Assistant Chief of Staff, 0-2 Chief of Staff Under Secretary of War War Plans Division Office of Naval Intelligence 0-3 Air Corps CONFIDENTIAL Dea - 154 BRITISH EMBASSY, WASHINGTON, D.C. May 14th, 1941. Personal and Secret, Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, have Butter The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D. C. 155 Telegram from London dated May 12th. 1. Naval. Owing to raid night of 9th/10th, Bues Canal now closed between Port Said and Lake Timeah and Lake Timesh and Deversoir. Between Sues and Deversoir and in Lake Timsah traffic can move. 2. Night of May 10th/11th. Royal Air Force claim sinking by two direct hits destroyer approximately 2,000 tons. 3. Two 500 ton vessels were hit and probably destroyed. Unobserved attacks also made on three convoys off Frisian Islande, 4. Attacks by onemy aircraft on two East Coast convoys night of 11th/12th were uneuccessful. 5. Iraq. Rutba Fort was captured by the Royal Air Force armoured care early May 11th. This area including serodrome is now in our hands. 6. Reyal Air Force. Night of 10th/11th. Hamburg. About 107 tone of H.E. and 10,000 incendiaries dropped under good visibility: in particular Blohm and Voss shipyards, electric power station, main railway station and marshalling yards repeatedly hit. 13 tons of H.E. dropped on Berlin. 7. Night of 11th/12th. 187 bombers sent to Hamburg (92) Bremen (81) 3 German occupied ports (10) 1 stirling to Merignae aerodrome and three airoraft to attack shipping. Weather good over Northwest Germany and 80% of attack on primary. targets. Four airoraft missing. 8. During the daylight 10th, two aerodromes in Sicily were attacked by 9 Beaufighters which have destroyed at least five aircraft and inflicted heavy damage. 9. Iraq. Four Bienheims which attacked Rutba on May 9th were damaged and 1 destroyed by anti-aircraft fire on May 10th. 10. German Air Force, May 11th, daylight. Activity slight Fightere/ Regraded Unclassified 156 - 2 - Fighters bombed and machine gunned South End Aerodrome, damaging two sircraft. Our fighters destroyed four without loss, ground defences a fifth. 11. Night of 11th/12th. 260 aircraft operating overland, 15 more minelaying. Bombing widely distributed. Royal Air Force stations attacked: some damage to hangars and buildings, casualties few. No serious loss of aircraft. 7 enemy aircraft destroyed, four by night fighters. 12. Home Security. Night of 10th/11th. Casualties 80 far reported 646 killed, 14,004 seriously wounded. May 9th West- minster and Bermondsey reported damaged. Factories. Damage to war industry thought not serious. Docks. Damage less heavy than expected. City. Many main thoroughfares blocked but those from north to south now mainly cleared. Railways. Considerable suspension of traffic principle Tormini but largely precautionary during survey of the permanent way. Several sections of the underground temporarily closed. Electricity. Some temporary dislocation of supply. Gas. Damage to gas works not serious but fracture of maine has out off supply in some 5,5. districts. Telephones. Little dislocation. Pebi Public Buildings, Houses of Parliament. Chamber of House of Commone severely damaged by H.E. and fire. Rxtensive damage to corridors, ceiling, etc. in House of Lords. Westminster Abbey. Lantern Tower over Transept collapeed into the Abbey. Damage reparable. Westminster Hall. Berious damage to roof. Lambeth Palace, Serious damage to chapel and part of the Palace. City Guilde. Five Halle destroyed. Queens Hall. Extensive damage by fire. British Museum, Most treasures had been removed. Damage comparatively alight. Regraded Unclassified 157 RESTRICTED G-2/2657-220; No. 391 M.I.D., W. D. 12:00 M., May 14, 1941. SITUATION REPORT I. Western Theater of War. Air: Limited operations by both sides due, apparently, to bad weather. II. Mediterranean and African Theaters of War. Ground: North Africa. Deep German reconnaissances to the East and Southeast of Sollum resulted in sharp clashes. Near Tobruk a British attack on an Italian position was repulsed with considerable losses according to the Italian High Command. Air: Minor raids on Malta and Alexandria by Axis planes and on Denghazi by the British. III. Balkan Theater of War. Italian troops have occupied Pec, Prizren, Tetovo, Gosti- var and Kishevo in conquered Yugoslavia, and in Greece they have completed occupation of Epirus and Acarnania and Aetolia, reaching Missolonghi and Lepanto on the Gulf of Patras. IV. Iraq. No change in the general situation. Indications of flight of a few Axis planes across Syria toward Iraq. RESTRICTED 158 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 19, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: British Forces in the Campaign for Egypt (With accompanying map) British Strategy The present British strategy in the campaign in the Western Desert of Egypt is defensive. The British hope to hold Egypt over the summer by relying on the hot weather, the sand storms and the difficulties the axis experience in supplying their troops and by fighting successive delay- ing actions. Tobruk The mission of the force at Tobruk 1a to deny the use of the harbor as an axis means of supply and to interfere with the use of the coastal highway. When the British are able to take the offensive again, Tobruk will be valuable as 8 British base for an advance. There are 25,000 men now at Tobruk, including one Australian division. (This is double the original number.) The garrison probably has less than 30 tenks. No air support is available. There are, however, over 100 anti-aircraft, anti-tank guns. Zone I - - Patrol Action In the area from the Libyan frontier east to Mersa Matruh, the mission of the British force covering this sector 1s to act as 8. delaying force to hold up any axis advance. This force may take the tactical offensive from time to time, such as its attack on Sollum, to keep the axis forces worried but it cannot undertake any major engagement. 159 -2- Division of Monetary Research The British troops in this patrol number about 5,000. They consist of, 80 far 88 our information goes, 15 light tanks, 50 ermored cars, 40 field guns and partially motor- ized infantry. Zone II - Successive Delaying Positions In Zone II from Mersa Matruh to the main line of resistance (M.L.R. ) (from El Maghra to the sea) there are two major delaying positions. The mission of the troops in this area is to delay the advance of the axis forces and then fall back under major pressure. In Zone II, the British have two divisions (one Indian, one British) or around 35,000 to 40,000 men. The two divisions are being supported by 34 light tanks and 36 armored cars. Main Line of Resistance The main line of resistance which the British plan to hold at all costs runs from El Maghra to the sea. There is no information on the British forces available to hold this line. The troops now in front of it, outside of Tobruk, are expected to fall back on this position. This would give a total of about 40,000 men. The Second Armored Division 1s out of action, one brigade having been lost in Libya and the other in Greece. The Seventh Armored Division was awaiting new vehicles which have presumably arrived on the recent convoy from England. It should, therefore, be available for action within a few weeks. Regraded Unclassified 160 EONA (Magine) Napo Phone Ari Tires 11 A I Il Cale 4 r Capitant as 5 o Partna / Termines 1 THE R California for 7 Conya 1 sui (Raty) - (Chr Br) ^ 100mg SEA a / Moral / Alep to 5 / F 1 (Gr.Br.) - s STATES E / / & OR Name & a - / - R) of HOMRA / G Y / F 1 H design Regraded Unclassified 161 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 19, 1941 TO Secretary Morgenthau FROM Mr. Kemarck Subject: Summary of Military Reports on Current Subjects Libya-Egypt According to Rome sources, the German offensive in North Africa has been temporarily postponed due to damage to the Libyan ports, considerable losses in personnel and supplies en route to Africa and the difficulty of the supply problem. According to a Turk in Rome, the Germans now have 1,200 tanks in Libya but lost 700 more en route through sinkings. (Rome, Military Attache, May 15) (This 18 probably B. more accurate report than the earlier estimate by our military attache that the Germans have five panzer divisions in Africa, i.e. about 2,000 tanks.) A British convoy of six ships passed through the Mediterranean to Egypt. Despite heavy air attacks, no losses from bombs were suffered. One ship was lost through striking a mine. (Cairo, Military Attache, May 13) The British now believe that the Italians have seven divisions in Libya, one motorized and one armored. (This agrees fairly well with the Berlin and Vichy estimates of eight Italian divisions, but is one-half of our Rome attache's estimate of fifteen Italian divisions. (London, British Embassy telegram, May 13) Crete A fairly reliable source in Berlin reports without confirmation that the German army is going to attack Crete supported by parachute troops. (Berlin, Military Attache, May 15) 162 -2- Division of Monetary Research Iraq-Turkey The Germans have sent a shipment of ammunition to Iraq by rail through Turkey. The Turks say that under the rules of neutrality they cannot stop this traffic. (London, Military Attache, May 15) Switzerland-France There is an Italian concentration of troops south of the Matterhorn. This may be to put pressure on Switzerland or France or may represent simply a withdrawal of troops from Albania. (London, British Embassy telegram, May 13) Russia According to & Turkish source in Rome, Russia has agreed to all German demands and, therefore, there will be no German attack on the Ukraine. A Germen source in Rome is reported to have stated that Germany will send agricultural and trans- port experts to Russia to take charge of grain and live stock shipments from the Ukraine. (Rome, Militery Attache, May 15) Germany There has been no deterioration in the quality of German pilots used over England. They are in first-rate physical condition and their morale, even when captured, is swaggering and defiant. (London, Military Attache, May 15) Regraded Unclassified CONFIDENTIA, 163 Paraphrase of Code Cablegram Received at the Me Department at 16:02, May 15, 1941. name, filed My 15, 1941. is the result of damage to Libyan ports, considerable lesses in personnel and supplies on reute to Africa and the great difficulty of the supply problem, the German effensive a Egypt has been temporarily postpened according to well informed opinion in Italy in spite of press reports to the contresy. There are in Libya 1200 German tauks although 700 have been lest due to transport sinkings according to a reliable Turkish source. It is thought that General Roumel is OTHER extended and that reinferesments from Greees are being sent him by air. It is stated by the sam informant as a fact that two German bombers have arrived at Baghdad and German treeps are expected in Iraq by plane. It is - sidered probable by him that France has agreed for Generary to use Syria to include possibly transports there and material. He further states that as Russia has agreed to all German demands there will be no attack on the Ukraine. According to another contact it is reported w a German source that as the result of a secret agreement Germany will send agri- cultural and transportation engineers to Russia, who will be in charge of grain and live stock shipments from the Ukraine. FISKE Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of Mar Chief of Staff Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence CONFIDENTIAL Regraded Unclassified - 164 SECRET By authority A. C. of S., G-2 Date AY 16 1941 ( Re ) Initials Paraphrase of Code Cablegram Received at the War Department at 21:20, May 14, 1941 Cairo, filed Ma; 13, 1941. 1. Five ships of 3,000 ton burden were observed in the harbor of Benghasi. 2. German aircraft are known to be in Iraq and Syria. 3. A British convoy of 6 ships passed through the narrows south of Sicily. Despite heavy air bombardment there were no losses. However one ship struck a mine and sank. FELLERS Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, G-2 War Plans Division Office of Naval Intelligence Air Corps G-3 SECRET Regraded Unclassified 165 BRITISH EMBASSY, WASHINGTON, D.C. May 15th, 1941. PERSONAL AND SECRET. Dear Mr. Secretary, I enclose herein for your personal and secret information a copy of the latest report received from London on the military situation. Believe me, Dear Mr. Secretary, Very sincerely yours, Horila Butter The Honourable Henry Morgenthau, Jr., United States Treasury, Washington, D.C. 166 TELEGRAM FROM LONDON MAY 18th. 1941. Naval. of 10th/11th. 5 British destroyers fired 866 rounds at shipping and military objectives at Benghasi. One merchant vessel was engaged from the harbour entrance and his. Our ships were attacked by dive-bombers and shore batteries but no damage was sustained. British gran boat also bombarded lending ground at Gasala and caused fires. 2. Military. Ethiopia. Our troops advancing from South have reached 18 miles south of Amba Alagi. In Southern Abyssinia we have occupied the last enemy position at Wadara. 3. Libya, Believed7Italian divisions now in Libya including one armoured, one motorised. 4. Italy. Italian concentration South of the Matterhorn group. Size not yet known. Possibly consists of troops from Albania but say be first movement to induce closer collaboration with Switserland and Unoccupied France with the Axis. 5. Royal Air Force. Night of 18th/13th. 100 bumbers sent to attack industrial centre of Mannheim, 13 shipping off French Coast, 1 aircraft missing. 6. Libya, Night of 11th/28th. 9 heavy bombers attacked Benghasi harbour and 8 enemy aerodromos in Cyrenicia. Large fires started at Benghasi and on aerodromes; 4 aircraft set on fire and others damaged. 7. German Air Force. Day of 18th; enemy activity slight. Night of 12th/15th, only 60 aircraft came over land; further 90 were minelaying, 1 enemy bomber destroyed by night fighters. J Regraded Unclassified CONFIDENTIAL 167 Paraphrase of Code Cablegram Received at the Mar Department at 15:50, May 15, 1941. Berlin, filed 15:10, May 15, 1941. A source of fair reliability reports that the Germane are to abback Crete supported w parachute troops. I an mable to obtain further confirmation. PEYTON Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of Wer Chief of Staff Assistant Chief of Staff, 0-2 Har Plans Division Office of Naval Intelligence CONFIDENTIAL Regraded Unclassified 168 CONFIDENTIAL Paraphrase of Code Cablegrem Received at the War Department at 08:39, May 15, 1941 London, filed 11:40, May 15, 1941. 1. British Air Activity over the Continent. a. Daylight, May 14. There were no bombing raids w British planes. Fighter squadrons, however, performed missions over German air- fields in Occupied France. b. Might, May 13-14. On account of adverse weather conditions all bombers were grounded. However, damage resulted to an airfield at Ostand from an attack by fighter planes. 2. German Air Activity over Britain. a. Right, May 14-15. German air operations were limited to ⑉ patrols along the English coast by & mall number of planes. b. Daylight, May 14. Air activity was limited to small mumber of reconnaissmos patrols over East Reglis. 3. German Air Leases, British Theater. a. Night, May 14-15. One plane was destroyed w Naval anti- aircraft fire. b. Daylight, May 14. Four German planes were damaged in reconnaissance patrols over East Anglia. 4. British Air Activity. Middle East Theater. a. Daylight, May 14. 1. Egypt. British planes based on Egypt subjected the airfield at Catania (Sicily) and the Isle of Rhodes to severe bombing. Ships in the harber at Bengasi were also attacked. 2. Ethiopia. Axis columns near Ambi. Alagi were attacked CONFIDENTIAL Regraded Unclassified 169 by low-flying CONFIDENTIAL 3. Inc. British planes bombed and machine guaned Iraq arsonal and supply dump as well as motor envoys en reads. 50 A French transport with 400 troops was explured by the British 100 miles southwest of Dalder bound for Madagascar. 6. A small British navel vessel was abandoned 650 miles south- west of Iceland on the morning of May 13, after it had been terpodosd. % In the German raids on Malta on the night of May 11-12 damage was limited to one hanger and one Maryland destroyed by fire with two additional planes damaged. 8. It is recomended that the State Department dispatch of May 12, forwarded by airmail, subject "French Military and Pelitical Situation in Morocco and Dakkar," be consulted. 9. Reports have been current that rew, young pilots and MR recently returned from hospital have been sent by the Germans in boarding raids over England. The inference of these reports is that a strong reserve of experienced veterans is being built up in anticipation of a maximum effort. These reports have been subject to investigation and have been revealed to be without foundation. The persentage of old and young pilots has net been altered. Medical authorities state that German pilots are in first rate physical condition. Their morale, even when esptured, is sweggering and defiant. LEE Distributions Secretary of War War Plans Division State Department Office of Naval Intelligence Secretary of Treasury Air Corps Under Secretary of War 0-3 Chief of Staff Assistant Chief of Staff, 0-2 CONSIDENTIAL Regraded Unclassified 170 Paraphrase of Code Radiogram SECRET Reselved at the Yes Department By authority A. C. OFS. 0-2 at 09:32, May 15, 1941 Date 16 may 41 ) Initials Landon, filed 16:00, May 35. The fellowing is a - of British Military Intelligence information a the situation in Ireq to date of May 15: 2. Mr. Murphy, or representative in Tangier, is reported to have told the British representative there, that be considered that British opinion and reports consuming Marshall Petain and General Waygent, and the course of action which they will probably pursue, were too severe. The unafficial opinion held by British Intel- ligense efficers here is that the Government of unoccupied France has been completely controlled by the Germans for months. 2. It is reported from Syria that a mmber of German planes have landed there earing from Rhedes, and that additional members of German "teurists" are arriving in Syria. 3. The French High Consissioner of Syria has announced that be will not attempt to counter any German operations unless be receives specific instructions to do ao from the Victy Governments. 40 A shipment of ammunition has been forwarded by the Germans to North Iraq w rail through Turlony. The Turidah authorities my that under the rules of neutrality they essmot put a stop to this traffic. 5. The rements of the Iraq Army which retreated from Beara are reported to be recrganizing in the visinity of Qurna (?) and Humadiyah, south of Baghdad on the Baghdad Railway. Its rumbers SECRET 171 SECRET are reported to be about 1000. 6. Several mall units of Germen fighters have been reported, the largest being of 6 planes. At least one bomber has been observed. LEE Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of Var Chief of Staff Assistemt Chief of Staff, 0-2 War Plans Division Office of Naval Intelligence Air Corps SECRET Regraded Unclassified 172 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 20, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: The British Story of the Balkan Campaign (According to General Wilson, Commander of the British Forces in Greece) Summary According to the comments of General Wilson, to some degree, the campaign in Greece might be summed up in "Too little and too late". The situation was made worse by Greek and Yugoslav mistakes. The British tanks proved to have serious defects. The R.A.F. system of army support proved wrong. The Empire infantry and field artillery apparently gave 8. good account of themselves. Cooperation with the Navy was good. The Germans relied too much on air attacks to prevent evacuation and were unsuccessful in preventing the escape of most of the British force. 1. The Germans fostered the Yugoslav coup d'etat of March 27, in order to have 8. pretext to occupy the country. The agreement with the preceding government had merely given the Germans the right to use the railways. (General Wilson, in my opinion, 16 mistaken in this view: (a) The Germans do not need a real incident for a pretext, they manufacture one very easily. (b) If the coup d'etat was foreseen by the Germans they would have been ready to march in the next day, whereas they had to take ten days to re- arrange their troops before they could attack. (c) The Germans would have preferred to occupy Yugoslavia without war.) 173 - 2 - Division of Monetary Research 2. The Germans struck at Yugoslavia before the Yugoslave were ready. The British, too, had not been able to complete their concentration of troops on the planned line of defense before the Germans had crossed the border. 3. The Italo-Greek war had been 8 one-man show run by Metaxas. After Metaxas' death, the King, while courageous, could not exercise effective political leadership. When the situation became desperate, Metaxas' successor as Premier committed suicide from despair. 4. The forces assigned to the job were inadequate. The Middle East High Command had promised General Wilson seven divisions and twenty-three squadrons of planes. He actually received two divisions and ten squadrons totalling 226 airplanes. (According to earlier information, the British never had more than 100 airplenes in use at any one time.) The Greeks were supposed to reinforce the central front with 100,000 men to be withdrawn from Albania. But the Greeks were obsessed with the idea of a victory over the Italians and did not withdraw any troops from Albania. (The Yugoslavs made the same mistake. Instead of concentrating their forces to defend the vital Vardar valley opposite Bulgaria, the only Yugoslav army that was completely mobilized when the Germans attacked we.8 the army on the northern Albanian frontier.) There were also four Greek divisions in Thrace which were to be transferred to other fronts in accordance with the plan to leave Thrace undefended. However, these divisions were composed of Thracians who refused to abandon their homes without resistance to the invader. As a result, four divisions (80,000 men) were lost in Thrace. The Yugoslave had also promised to provide support for the Anglo-Greek front. This assistance never materialized. 5. The British tanks had serious mechanical defects. A sharp turn was likely to throw off the tracks and immobilize the vehicle. All the tanks brought into Greece were lost. The British radios in the communications network functioned, badly, perhaps due to the magnetic deposits in the mountains. 174 - 3 - Division of Monetary Research 6. Lieutenant-General Blamey, the Australian now Deputy Commander-in-Chief in the Middle East, 18 of the opinion that the British eystem of Royal Air Force control over army planes proved to be wrong. The campaign showed that the commander in the field needs immediate air support and should be able to give direct orders to the squadrons in his support. 7. The British artillery showed up well. The two- pounder enti-tank gun (about the size of our 37 mm. gun) and the 25-pounder gun (larger than our 75's) were particularly effective against the German a rmored troops. The British defense against tanks proved to be good 8.8 the German tanks never gained the ascendancy over the British foot soldiers in defense. The successive retirements were made at night and were well carried out since the Germans were not able to overrun the retreating British. The demolitions made during the retreat at night delayed the Germans during the following day. 8. The elastic system of widely-dispersed evacuation from the beaches proved successful. Cooperation with the Navy was well carried out. The Germans relied too much on air action to prevent the evacuation which was carried out successfully at night. 9. According to Lieutenant-General Blamey, the German bombing of motor truck convoys was remarkably ineffective. Machine-gun fire from the attacking planes was effective, however. Neither was as effective 88 field artillery fire in the lastwar. The German tanks were often badly handled. However, they proved to be able to travel over almost any terrain and could go anywhere a horse-drawn vehicle could go. 10. General Wilson expressed the general British opinion that the Germans lack aggressiveness compared to 1914. He felt the Germans were soft once they were out of their armored shell. (Our Cairo military attache comments that this is a mistaken judgment. The present German military doctrine of infiltration teaches that strong points and centers of resistance are not to be attacked head-on 175 - 4 - Division of Monetary Research but to be by-passed. A line is thus felt out for soft spots which are often created by tank and air action. Then the Germans infiltrate through these soft places and flow through the sector leaving the strong points to be washed away from the rear and flanks.) 11. General Wilson came out with the lesson that concealment from the air was more important than the natural defensive attributes of 8 position. (This lesson might be modified if it had been General Wilson who had superiority in the air rather than his enemy.) CONFIDENTIAL 176 of at 2043. - filed my se, 1042. the following to a - of the information goingh to a personal I 1 $ I a the - of the Britten to Gross, General vilam stated - the chief Income no had Account wife the fellowing: I 1 1 I I 1 $ . I I I a ¥ % 1 I 1 I I a 1 Activiting a position - good correr - Sgnewal w Common planse. Holther - amered units MP foot treepo grossed. the attent. - contag - defensive fire the Commone - disphayed msse in - w vehicles. I 1 ¥ s I É 1 I 4 I i elemmin - me ma 5-9 - immitately throught will sume. d n to the General's optaion 1 the - scháier % 1941 does and - to aggress/mouses to the information of spar. no does með - - chase smitch. - served from his convered sholl, he to soft. 3. Consual Wilesn's observations a the quality of the nation - soldAr to an optation - provatio - Brittich officers. n their cettinte, the Brittish naghest consideration of the - decturine of the a I 1 I 1 s I z E the direct abtects of a position, the indivity does not - to to full strength until - - has born and w booking from the air and w CONFIDENTIAL 177 CONFIDENTIAL the attack of amered vehicles. It to my on opinion that the Govern infontayunn to not as coft M the Britten think, but rether that he is employing - destrines when he presents as - target to the - until after the my has been propered w planse and tomin. i the 2-pornter antitank - and the British 23-gemier vere I I a I 1 I I I train vere frequantly bodly massurered. and they naver sussested in the accomiency 0700 the Hrittich feet soldiers in defense. However, torreta which the Brittick considered impensible for tento a assemb of - w clopo we casily traversed. the Comman task has selved termin difficultie and - - anywhere that a heree dream vehicle - - British tasks had seriens mechanical defects. m combat a quick term threw off the treate. All the Brittich trains taken tate Greece vare lest. British redie functioned very bodly. Perhage the reason for this - nagnotic niseral deposite in the nonatains, but in my event the bust equipment completely failed to operate, and all communication w viraless was crratic. the Britten attempted to fill the - w use of Maison officers but utilising this - of communication was serionaly reteried and there use heavy enemalties - the officers employed. I 1 a s I Inc. ₫ a 2. in daylight end w dark we proofble north of Thermogylee. South of that point, however, withdownel had to be effected in the hears of éntrass only and them with the videot possible disporation along the const. the plan of evacuation más use of street flouibility in regard to the points from which troops - taken. General Wilson had a his staff an Admiral CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 178 she we in direct communication with the flegably from with the - tion wes controlled. the Cusana placed too much reliance - atr sperations I 1 I I include I 6. In the withdrewsl w night from assoccaive positions, the retirement we correct by a fire from alterante positions ast novement to - - dented w the - atr suree. However, desclitions unle during the night provented the - from fellowing - the retirement as the most day. (6-2 notes too nentences gurbled in original). the - had 1 I 1 I I I ¥ 8 I 1 i # I min vehicles them had been espected. the strain on the drivers of motor vehicles wes encossive; they operated day and night without steep and were yursesd w morenisting air attachs. the Greek instruct the withdrownl. the motor transport of the Greek any via in your condition of jenned reade which - the German cive bankers on apportunity for effective assock and más the need too British fighters a anthor of ungeney. 7. the Greeite wire obsessed. with their anbition to class the wer with Italy victoriously and instead of releasing 100,000 - from Albents to - in the center of the Hritdsh-Greek line as they and promised, they continued their operations a the Alburian front. Sintlarly the - peanl to transport four dreak divisions operating in Throse to reinferes the conter time remained insffective because the trospo had been refeed in Three and refused to leave their villages ungrotocted. As a result of these two failures to retaforce the British, their line we assessarily I I 1 s a. 1 I 1 1 I a 1 s 1 a Vilcan BOTER divisions from Harpt and Libya - 25 of planse. -3- COMMIDENTIAL Pogradod CONFIDENTIAL 179 to actually we given two divistene and tom equatrons with a total of me planes. with 1 I 1 age The I á I i failed to materialise. AND I # I s I 1 1 I completed w which the German were to have the - of reflrends but vare not w compar the country, 10 - to 11ght that Tegeslavia had más so military conditionto to Britain. - then featured the - d'etat is order to have a protect for Investon. 12. the change of government - se colden that the Tageolav any never get started in their apposition to the - invoice which 1 a 1 I I 1 1 I 2 a I I 6 of the British any had not born completed when the - reached the Greek berder. 12. the Itale-Sveek - we a show led personally w Natames. with bis death, londership - to a end. the king to commageeen but - as entrol of the political situation. the disastrons tem of events impelled the Into Mateter to count suiside. $ I 1 3 1 I I I Australians feight is Grosse - who to - Deputy of the middle Best mate the following statement to ⑉ - income of German benking of essame a the rend revenled a reasotable insfloctivences. I i and I I I I I E but neither booking - machine guarding compares in offect to the artillery consentrations of 1918. Impliste air support to a matter of absolute CONFIDENTIAL Regraded Unclassified 180 CONFIDENTIAL I - - I 64 I CONFIDENTIAL Regraded Unclassified 181 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 22, 1941 TO Secretary Morgenthau FROM Mr. Kamarok Subject: Summary of Military Reports Crete The British on May 19 (the day before the invasion) felt that the plans for the defense of Crete had been worked out in satisfactory detail. For an advance from Syria on Suez, British Military Intelligence thinks that the Germans will need to seize Crete and Cyprus and neutralize the British Fleet in the Mediterranean. (This may overlook the fact that if Crete and Cyprus fall, Turkey may allow German use of her territory making possible a serious threat to Suez even without neutral- ization of the British Fleet.) (London, Military Attache, May 19) Iraq-Syria Under British pressure, Turkey has promised, as a gesture, to move 8. division to the Iraq border and one to the Syrian border around June 1. Turkey refused to stop the use of Turkish railroads for carrying German equipment into Iraq. German artillery has been landed at Trebizond (Turkish Black Sea port) and transported to Iraq by truck. (London, Military Attache, May 19; Ankara, Embassy telegram, May 18) German planes are based on Syrian airports (Aleppo, Beirut, Damascus, Palmyra) in operations over Iraq. Further reinforcements of planes and crews are arriving with the full cooperation of the French. There are at least 35 Heinkels (bombers) and Messerschmidts in Syria. (London, Military Attache, May 19; Ankara, Military Attache, May 19) The French have five groups of airplanes in Syria (maximum 100-150 planes), consisting of Moranes, Martins, Potez 65's and other miscellaneous planes. (Ankara, Military Attache, May 19) Regraded Unclassified 182 -2- Division of Monetary Research Russia According to the Yugoslav military attache in Moscow, the Chief of the Red Army stated that Russia will fight Germany later and is waiting for the United States to enter the war. The Soviet Government still distrusts England and suspects the Hess flight was an effort to turn the war against the Soviet Union. The Japanese military attache, states that only 180 Soviet divisions have been actually identified with less than 100 fully equipped. Germany turned over to Russia ten Junkers-52 (air transports) without motors. (Moscow, Military Attache, May 20) The London War Office 1s increasingly inclining to the view that Russia has secretly agreed not to oppose any German operations in the Middle East. (London, Military Attache, May 19) Africa The Suez Canal 1s still closed. (It has been closed now since May 9. The outting of this line of communications is most serious.) (London, Military Attache, May 20) Military authorities in London feel that even with the complete conquest of Italian East Africa, it will not be possible to remove substantial British forces from this area "since it will be necessary to prevent a reoccupation by axis troops". (This reasoning is more than a little absurd since the only way axis troops could land in Ethiopia is from the air from bases hundreds of miles distant. The Ethiopians could easily handle any such air-borne invasion). London, Military Attache, May 19) Far East According to the British War Office, the Japanese have demanded all the rubber production in Thailand in exchange for oil. "It would be interesting to determine the expected source of the 011" (Thailand 16 a fairly important rubber source, producing about 40,000 tons a year.) (London, Military Attache, May 20) 183 Paraphrase of Code Cablegram SECRET Received at the War Department By authority A. C. of at 06:52, May 20, 1941 Date MAY 21 1941. Initials London, filed 11:37, May 19, 1941. 1. Iraq. The British forces in Habbaniya have been re- inforced from the south. The Basra-Ashar district remains quiet. 2. After repeated British representations, Turkey has promised to move troops in the amount of approximately one division to the Iraq border and one to the Syrian border as a gesture only. The Government maintains that they will not be able to place them in position until the first of June. Turkey refuses to take any action with a view to preventing the use of railroads for forwarding German equipment into Iraq. 3. Syria. German planes based on Syria are continuing active operations over Iraq. Planes and gun crews are still arriving at airports and the French military authorities are granting them full cooperation. 40 Crete. British authorities here announce that plans for the defense of the island are in satisfactory detail and British Military Intelligence estimates that in order for any major land forces to operate on the line Syria-Sues it will be necessary for the Axis to seize both Crete and Cyprus and to neutralise the British Fleet in the Mediterranean. 5. Ethiopia. The surrender of the Italian troops at Amba Alagi leaves only three comparatively small concentrations of troops still to be eliminated. Some British forces can now be relieved for SECRET SECRET 184 duty in Egypt. But military authorities do not expect that any substantial forces will be removed since it will be necessary to prevent a reoccupation by Axis troops. 6. The War Office increasingly feels that a secret agreement has galready been consummated between Russia and Germany by which the former will not oppose any German operations in the Mid East. This is not yet accepted officially. 7. Libya. May 15. In the retaking of Capusso the Germans employed more than 40 medium and a number of larger tanks. Some of these were destroyed or damaged and 500 prisoners were taken by the British who, however, suffered the loss of 10 of their own infantry tanks. LEE Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of War Chief of Staff Assistant Chief of Staff, 0-2 War Plans Division Office of Naval Intelligence Air Corps Assistant Chief of Staff, G-3 -2- SECRET Regraded Unclassified CONFIDENTIAL 185 Terephrose of Code Indiegram Reseived as the - Department as 25:55, My 19, 1941. Assure, filed May 19, 1943. the fact that there are asverate of treepe from Bulgaria, Tageslavia, ont Grosse be the north and mortheast to - cotablished. I as told w the general staff of the Turtich Any that Acto troop consentra- time and their batteries threnbon Thridels territory in Threes. with regard be a coblagrem from the Tobeccry membered 195 at dated My 28c About ten pieces of artillery (15ght) and - heres, w - musber where, - also emb. the storage degate me Bayak copylied the mattions. Truveling w str, about 35 Notabolu and reached Syvin. Alegge, Betrab, and Falagra are the airtielde nov in the health of the Common. Also the leading fields at Treeps are orposte2 to certive w atr transport. - the other londing fields in Syria are Home, Negals, Tripali. there to also a small field now Healthin, Terbay. for a emalderable was, the terreta is of a nature that facilitates essy I the fellowing French planoe are in System - - cash w Mercase and Markins, - missellaneous; two - of Fetes 65. the Brittish my that the oil refinery or Tripeli we in part smoked together with age - of gasoline. they also m that the - have increased their artillery in mechanized divisions. the insuress to from sh to 36 piesen, 205 m hoviteers. Attention to dévites to Coblegroms 151 est 199 from the Roberty, dated My 15 and 16 respectively. I CONFIDENTIAL CONFIDENTIAL 186 ( I I I $ Trubland 1 I I n trusts to / 2 I i I = Intelligence CONFIDENTIAL Regraded Unclassified CONFIDENTIAL 187 and Darna, laws. Also attacked was Calato, Isle of Rhodes. Fighters mokine-zumed an essay transport with considerable effect may Bares. e Imai_Thenter. R.A.F. planes in Iraq supported ground operations against Fallujah, which has been taken. Planes baned in Falestine bombed a gaseline - at Rayak airdress in Syria. 5. & Creten Theater. Twenty-seven Aris planes dive-banbed Date Day. n Iraci Theater. Gorman planes attacked combined British-Arab treeps in Iraq, but there vere no casualties. 6. Aircraft Losses. Other Theaters. à No British leases were reported. À During the bembardment of Sude Bay two German planes vere destroyed. 7. There is a reliable Var Office report that the Japanese have demanded all rubber production in Thailand in exchange for cil. It would be interesting to determine the expected source of the oil. 8. A submarine has torpedeed and sunk a British ship 900 wills west of Freetown. 9. The British have picked up a French ship with 1700 Inde-Chiness treeps on board 300 miles south of Freetown, Sierra Leene. 1 10. The Shaes Camal is only open at the south and nov. LEE Distribution: Secretary of Var State Department Secretary of Treasury Under Secretary of VAP Chief of staff Assistant Chief of Staff, 0-2 Var Plans Division Office of Naval Intelligence (2) Air Corpe I + CONFIDENTIAL CONFIDENTIAL 188 of Code Reseived at the Mar Department at 08:00, Magr 20, 1942 Lenden, filed 14:37. May 20, 1941. 1. a Activity en this day consisted of attacks an shipping w planes of the Constal Communit. A Seventy heavy bashers of the R.A.F. attacked the novel yards at Kiel, Seven bouteers attached Masberg, Dremon, Maden, and four unnamed airdrence an north Commay. the decise at Charbourg vere attacked w planee of the Coastal Command. 2. s Activity on this night vas wiight and dispersed. Several planes vere ever East Anglis, Cormull, Deven, Igree Day, Crystal Chamnel and the Themes Insury. 4 Considerable recommaiseance over Yes My and Briman, England, and Dundalk and Belfact, Ireland. Patrols also operated over the straits. s. a Buring the Britdsh operations ever the Continent. night of May 18-19, there were m leases. During the German operations on the day of May 19, Brittich fighters destroyed five planse. 4. Planse of the Reyal Air Teres based in never continued their attacks en eneny-cosupi.ed airdrence at Apellenia, Bengast CONFIDENTIAL CONFIDENTIAL 189 Paraphrane of Code Rediegram Received at the Mar st 9:55, May 20, 1941 Meecow, filed May 20, 1942. Tugeslavia Military Attache stated that Chief of the Red Army said to him the Seriets will fight Generage later and are waiting for the United States to enter war, and that the Seviet Government distructs Regland and suspects lines flight as effort to turn war against U.S.S.R. German Air Attache stated that Germany turned over to the U.S.S.R. ten without moters. Jayances Military Attache states that only 180 Seviet divisions astually identified with less then 100 fully equipped. YEATON Distributions Secretary of Mar State Department Secretary of Treasury Under Secretary of War Chief of Staff War Plans Division Office of Naval Intelligence CONFIDENTIAL Regraded Unclassified 190 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 23, 1941 TO Secretary Morgenthau FROM Mr. Kamarok Subject: Weekly Military Report: The Accuracy of British Military Forecasts Judging from the record of the past nine months, it 18 possible to reach some tentative conclusions on the accuracy of the estimates of the situation made by British military leaders. On the whole, the British military leaders have shown themselves to be fairly accurate prophets in their forecasts of what the axis was going to do. They have been over- optimistic in their judgments of what they themselves and their allies could do. There 1s only one British estimate of what Russia was going to do and that proved completely inaccurate. The following lists the forecasts of the British military 8.8 they were reported to us. The Invasion of England September 5, 1940 The British have not discovered any indica- tion of impending invasion. September 13 German plans for invasion are now complete. Next week will be the critical period. It 18 probable that the German invasion will be along the axis Calais-Dover-London. September 23 There is no evidence of an immediate inva- sion. October 28 There is no indication of impending attack. December 4 After Christmas, the danger of invasion will practically vanish because of rough water in the Channel. 191 -2- Division of Monetary Research January 19, 1941 All reports indicate that the Germans will attempt the invasion sometime in the spring. February 18 the earliest date referred to. March 16 There are no indications that an invasion attempt will be made in the near future. April 17 There 18 evidence that the German staff is again planning invasion of Great Britain which British Military Intelligence estimates will be about the first of May. War in the Balkans October 28, 1940 Germany will not go to war in the Balkans but will use the coming winter to bore from within. February 23, 1941 German troops will probably arrive in Sofia, Bulgaria, on or about the first of March. (They arrived about March 5) March 14 Germany 1s holding back in order to see if the Italian army in Albania can take care of the Greeks there. If the Greeks continue to be successful, it 1s thought the Germans will move through Yugoslavia with the intention of hitting at Salonika and at the same time outting off the Greeks in Albania. (This 18 just about what the Germans did do.) Road conditions and the terrain in the Balkans theater give an advantage to the British and Greek defenders since the operation of mechanized forces in this area would be greatly hampered. March 16 Germany plans to bring an end to the fight- ing in the Balkans by April 1, either by military operations or through negotiations. (This could be correct since the Yugoslav coup d'etat upset German plans.) March 21 Negotiations between Yugoslavia and Germany will reach 8. crisis on March 23 or 24. (The axis pact was signed March 25) March 21 Turkey will be willing to consider an attack on Greece by Germany 88 a cause for war provided Yugoslavia is willing to do the same. i 192 -3- Division of Monetary Research April 3, 1941 On April 5, Yugoslavia and Greece will be subjected to simultaneous attack. (The attack started April 6) April 15 General Kennedy, Director of Operations, War Office, expressed little hope of any immediate success in the Balkans, especially in regard to the Yugoslavian Army. Never- theless, he hoped that it would be possible for them to continue their defense for a minimum of thirty days. (The Yugoslav campaign was practically over 8.8 General Kennedy spoke.) Middle East April 10, 1941 There is evidence that the German advance on Egypt 18 losing force and that the German situation in regard to supplies 1s serious. (The advance stopped a few days later.) May 1 The next German move will be an attempt to seize Crete and occupy Spain and Portugal. (Crete was attacked on May 20) May 11 The British Air Ministry believes no German planes can arrive in Iraq this month. (Nazi planes were in Iraq on May 14.) Far East September 24, 1940 It is believed that Japan and Germany have come to an agreement in the Far East regarding loot and common policy and this may be announced shortly. (Tri-partite pact was announced September 27.) Russia January 15, 1941 The indications are that Russia will occupy Eastern Moldavia in Romania in accordance with 8. prearranged agreement with the Germans. 193 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 23, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Summary of Military Reports Crete (The situation in Crete has reached the critical stage. British prospects in Crete at the present time look very dark. With the German undisputed command of the air over the island and the German capture of several airports, it is doubtful whether the British will now be able to hold the island.) In the bombing attack on May 19, preliminary to the invasion, the bombing was 80 heavy that all personnel had to take cover in slit trenches for the day. The Air Force head- quarters began burning its papers on May 20, the day the invasion began. (Cairo, Military Attache, May 20) The British garrison in Crete consists of the greater part of the New Zealand division which was in Greece and 4,000 marines. (This would give a total of about 15,000 soldiers, probably lacking heavy equipment and without air support. In addition, there may be as many as 20,000 Greek soldiers.) (M.I.D. Situation Report, May 22) Spain German troops began to return to France about May 10 with the concentration of troops on the Spanish frontier continuing. The reserve troops in this area are being relieved by shock troops. There are now 6 German divisions in this sector (3 infantry, 2 motorized, 1 armored). (Vichy, American Ambassador, May 20) The Spanish grain harvest has begun. This suggests June 20 as the earliest convenient date for the passage of German troops through Spain. (M.I.D. Situation Report, May 21) SECRET - 194 By authority A. C. of S., Q-2 Date MAY 22 1348 BPH, Initials Persphrase of Gate Cablegram Received at the Ver Department at 07:38, May n, 1941. Cairo, filed 20:30, May 20, 1941. 1. The following is a away of the situation in Crete, 2. In the attack of May 19, beshing was # heavy that all personnel was forced to retire to alit trenches for the whole day. At British headquarters, the Air Ferce is new burning does- ments, 2 The attack by parsehute treops and gliders began at 06:00, May 20, and was supported by uninterrupted bushing and aschine-guaning of ground troops, It commenced at Suda Bay, Maloud and Herakliem, but syread out later in the day as gliders towad by planes landed at Riteme, 4p Authorities here report that a Junicer's 52 can earry 15 infastrymen, or can tow several small gliders carrying 10 to 12 each, # one big glider with 24. so the attack of May 20 was preceded on the previous day by uninterrupted beaking and strafing of air and ground troops in the area surremding canes, FELLERS Distribution: Secretary of War State Department Secretary of Treasury Under Secretary of Your Chief of Staff WPD ONI SECRET Regraded Unclassified 195 CONFIDENTIAL Paraphrase of Code Rediepres Received at the War Departments at 9107, May n, 1941. Visty, filed May 20, 1941. General troups began to return to Transe about My 10 and movement now shows a little increase. In shouthmast perkiem of compled territory, reserve divisions have been relieved by sheek treeps and consentration continues. Extimated that 3 Infantry, 2 metoriged and 1 amored divisions are MM in that É LEANY Distribution Secretary of Mar State Department Under Secretary of War Secretary of Treasury Chief of Staff Assistant Chief of Staff, 0-2 War Plans Division Office of Neval Intelligence CONFIDENTIAL Regraded Unclassified 196 RESTRICTED G-2/2657-220; No. 398 M.I.D., W.D. 12:00 M., May 22, 1941. SITUATION REPORT I. Western Theater. Air: German. Minor offensive activity and no night raids. British. Day attacks on Helgoland and northern France which were severely mauled by fighters. Apparently no activity last night. II. Greek Theater. The German attack on Crete continues. The Malemi air- field, to the west of Canea, is in German hands. Other German air landings have occurred near Rethymo and Herakleion (Cordia). The latter town is in German hands. The British garrison on Crete consists of the greater part of the New Zealand Division, which was engaged in Greece, and 4,000 Marines. German air superiority over Crete is self-evident. The British are bombing German take-off airdromes in Greece. III. Mediterranean and African Theaters. Ground: North Africa. No change. East Africa. The British have occupied Tohen, in the northeast corner of Italian Somaliland. Air: Axis attacks renewed on Tobruk. Malta was raided. IV. Middle Eastern Theater. Ground: No change in the situation. British motor-borne reinforcements are reaching Habbaniyah from Palestine. Air: German air strength is gradually building up. RESTRICTED 197 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE May 31, 1941 TO Secretary Morgenthau FROM Mr. Kamarck Subject: Summary of Military Reports for the Week Ended May 31 British Navy British naval authorities state that the risk of passage of convoys through the Straits of Sicily is too high in proportion to the advantages. This is in spite of the fact that the last convoy brought tanks and planes which were desperately needed in Egypt. (Cairo, Military Attache, May 23) In view of its losses around Crete (up to now three cruisers, four destroyers) the British Navy asserts that it 18 folly to pursue its operations in Cretan waters. (Cairo, Military Attache, May 23) (The foregoing two reports are important in their implica- tion that the activities of the British fleet in the Mediterranean are going to be greatly limited in the future. With the growth in strength of German air power in the Central and Eastern Mediterranean, the British fleet will probably not be able to make more than raiding sallies into the Central Mediterranean except & the risk of great losses.) Hess (Hess landed in England three weeks ago. The British have not yet made available to our military representatives any information on the purpose of his arrival. Under these circumstances, the suspicion grows stronger that the Deputy Fuehrer traveled to England to contact a British appeasement element.) Syria The British, according to our Cairo military attache, do not look with favor upon a Free French Syria. This is supposed to be because the Vichy French are being concentrated in southern Syria rather than moving into Lebanon. (Cairo, Military Attache, May 23) 198 - 2 - Division of Monetary Research (Concentration in Lebanon along the coast would mean 8. threat to Palestine. Concentration in southern Syria presumably menaces only the desert of Trans-Jordan.) Turkey Romanian officials believe, and this belief is accepted by our Romanian attache, that 8 secret agreement already exists between Germany and Turkey. (Bucharest, Military Attache, May 22) Egypt The R.A.F. in Egypt has been reinforced by two Beaufighters and forty-three Hurricanes which flew from England by way of Malta. (Cairo, Military Attache, May 23) Russia The German preparations against Russia appear to have eased off. The bulk of German troops on the Romanian-Russian frontier are now reported to be moving north out of Moldavia into Bukovina. (Bucharest, Military Attache, May 22) Romania The Germans are not making any attempt to train or organize the Romanian army. In case of 8. war against Russia, the Romanians would merely act as scavengers of the bettlefield. (Bucharest, May 22, 1941) Spain According to Rome sources, the size of the wheat crop in Spain largely will determine whether the Spaniards will allow any passage of German troops. For if Spain permits such a movement the British will out off the movement of wheat supplies to Spain. A bumper wheat crop is not expected. (The Spanish wheat harvest is supposed to be over by about June 20) (Rome, Military Attache, May 23) 199 SECRET By authority A. C. of S., G-2 Pursphrase of Code Gablegram Date MAY 27 1941, Ro ) Received at the Ver Department Initials at 05:58, My 25, 1942. Caire, filed My 25, 1941. 2. Having lest five dectropers and - craiser British Bay assorts that 10 se fully to pursue its operations ta Creten waters. 2. the destroger on which the King of Greese was crossing from Crete to never is overtee. 3. Two emergé divisions ware embarked. at Greek parts too dismberintion points - time before May 19. 4. May 22: - destrayer and two large freighters with a great my Cresk fishing bests amounting in all to possibly - half of a courty were smit in nation with British nevel units. (0-2 Note: This to ovidently the coursy reported. in eable of May 22 as having 30 ships.) 5. My ⑉ - hundred Large air transporte lended at the Malent airfield at the rate of ⑉ every five stuntes. the - rate and members ware observed. throughout May 25. It is the opinion of British Military Intelligence that - air-borne division we engaged in the operations at Malani. 6. My 25: the Bounfighters and 45 Harricance flow from Regland to Gaire w wy of Mults. 7. the British do not Look with favor upon a Free French Syria as they are of the opinion that the Vicky French are not noving into Lebenan but are being consentanted in southern ayria. 8. Seven motor vessels vere observed handed in a southerly direction off Tumis. 9. British navel authorities communing upon the recent successful passage of the convey through the Straite of Sicily state that the risk is SECRET Regraded Unclassified 200 SECRET out of all propertion to my possible advantage, the foot that this coursy use Londed with teste ml. plance which the freess sparaking Information, 1 1 10. they me Five ont of cover were shot - milding a I I % I Team $ 1 I I I a s I $ I I a 1 É bembed their - tweeps. Distribution: I n Metr I I 1 r r I Whief of marr, 6-2 Rivision Office of Moral Intelligence Ate Corpo + SECRET Regraded Unclassified