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Diary Book 699 February 1-2, 1944 Regraded Unclassified - A - Book Page American Red Cross HMJr's statement on opening of drive - 2/1/44 699 91 Argentina See Latin America - B - - Berkshire, Stewart See Liquor - C - Celler, Emanuel (Congressman, New York) See War Refugee Board Commodity Credit Corporation Appraisal in connection with extension of funds prepared for FDR - 2/2/44 349 - D - D - Deferments, Military Stewart, Rodney Ward: Deferred for two months - - 2/2/44 347 Doyle, Mrs. Henry Grattan See Employee Relations, Treasury - È - Emigres from Central Europe, Self-Help of See War Refugee Board Employee Relations, Treasury Mrs. Doyle's memorandum on Day Care Service for Children of Working Mothers - 2/1/44 88,89 (See also Book 705, page 151 - 3/1/44) European Relief See War Refugee Board - } - Financing, Government War Savings Bonds 4th War Loan Drive: Unsatisfactory progress of sales discussed by Treasury group - 2/2/44 309 Florida See Liquor Foreign Funds Control Argentina Pellegrini, Meyer: Paul memorandum on connections with American Embassy - 2/1/44 93 Regraded Unclassified - F - (Continued) Book Page France See War Refugee Board - G - Georgia See Liquor - I - Intergovernmental Committee on Refugees See War Refugee Board - K - Kentucky See Liquor - L - Lehman, Herbert See War Refugee Board Lend-Lease Reports as of February 1, 1944 699 95 If 8, 1944: See Book 700, page 205 II 15, 1944: Book 702, page 13 n 22, If : Book 703, page 32 # 29, . : Book 704, page 184 United Kingdom Aircraft despatched, weeks ending January 18 and 25 - British Air Commission report - 2/1/44 97 Reduction of Dollar Balances and Elimination of Controversial Expenditures: Conference to discuss draft of statement for FDR to be signed by Hull, HMJr, and Crowley: present: HMJr, Crowley, Cox, Currie, Bell, and White - 2/2/44 294,299,300 a) Memorandum to FDR as sent - 2/4/44: Book 700, page 122 FDR's cable to Churchill suggesting reduction to $1 billion - - 2/25/44: Book 703, page 139 Balance reported as of December 31, 1943: Book 703, page 143 Conference: present: HMJr, Bell, and White; Churchill's cable to FDR as brought up at Cabinet discussed by HMJr - 3/11/44: Book 709, page 1 a) HMJr does not want Stettinius to discuss in London b) HMJr thinks Churchill's point of view the correct one c) Crowley may be spreading stories to cause breach between FDR and Churchill: Book 709, page 10 d) See next page Regraded Unclassified - L - - (Continued) Book Page Lend-Lease (Continued) United Kingdom (Continued) Conference (Continued) d) Crowley told by HMJr of coming meeting to discuss Churchill's message - 3/13/44: See Book 709, page 108 e) Conference; present: Crowley, Bell, and White: Book 709, page 109 f) Conference in Hull's office: present: Hull, HMJr, Stettinius, Bell, Crowley, Cox, Currie, and White - 3/13/44: Book 709, page 122 1) Hopkins-Churchill conversation - HMJr asks White House for report of - 3/13/44: Book 709, page 166 a) HMJr acknowledges receipt (report not attached) - 3/15/44: Book 710, page 93 Liquor Berkshire reports on trip to Kentucky and Florida - 2/1/44 699 4 Georgia: Progress report - Hannegan memorandum - 1/15/44 12 Long, Breckenridge See War Refugee Board - M - - McAneny, George Arbitrary action by Klaus discussed by HMJr and Treasury group . - 2/1/44 47,59 n and Graves - 2/1/44 56 - P - Pehle, John V. See War Refugee Board Pellegrini, Meyer See Foreign Funds Control: Argentina Portugal See War Refugee Board: Intergovernmental Committee on Refugees - R - Rab, Island of See War Refugee Board Raynor, Hayden See War Refugee Board Refugees See War Refugee Board Roosevelt, Franklin D. Protection by Secret Service: Date of undertaking and authority for discussed in Paul memorandum - 2/1/44 87 Roumania See War Refugee Board Regraded Unclassified - 8 - Book Page Secret Service Protection of President: Date of undertaking and authority for discussed in Paul memorandum - 2/1/44. 699 87 Self-Help of Emigres from Central Europe, Incorporated See War Refugee Board Stabilization Fund Gold transactions as of December 31, 1943 - 2/2/44 369 Stewart, Rodney Ward See Deferments, Military - U - United Jewish Appeal See War Refugee Board United Kingdom See Lend-Lease United Nations Relief and Rehabilitation Administration See War Refugee Board - W - War Refugee Board Luncheon conference with Stimson; present: HMJr, Stimson, McCloy. Bundy, and Pehle - 2/1/44 22 a) Resume of accomplishments to date given Stimson (See page 24) b) Rab, Island of: Making Funds Available to Refugees - memorandum - 2/1/44 31 1) Stimson reply - 2/8/44: See Book 700, page 213 2) Lire is necessary currency and Paymaster in Southern Italy can supply it - 2/23/44: Book 703, page 99 c) Stettinius memorandum discussed on assistance for all refugees now located in France and Roumania 33 d) Cable of instructions to American Embassy, London, to be used in connection with discussion with British Foreign Office 36 e) Pehle: Stimson and Stettinius will support if Graham is not available - 2/2/44 105 Long (Breckenridge) testimony before House Committee on Foreign Affairs: Congressman's Celler's comments thereon - 2/1/44 41 United Jewish Appeal HMJr and Pehle discuss - 2/2/44 106 Dr. Jonah Wise-HMJr conversation - 2/2/44 110 Lehman-Pehle talk reported to HMJr by Pehle - 2/2/44 113 Budget: $1 million advocated by FDR from Emergency Fund - (January 29, 1944) 119 Progress report - 2/2/44 124 a) Clippings b) Accomplishments c) State Department agenda used at first meeting d) Executive Order and press release e) See next page Regraded Unclassified - W - (Continued) Book Page War Refugee Board (Continued) Progress report (Continued) e) Memorandum regarding John W. Pehle f) Big names" g) Allocation of President's funds Intergovernmental Committee on Refugees: State Department asks Budget for funds without consulting Treasury - Pehle memorandum - 2/2/44 699 260 a) Discussion by HMJr, Pehle, and Luxford - 2/3/44: See Book 700, page 4 b) State Department asks Board to appropriate, from its own funds, funds for support of Intergovernmental Committee - 2/7/44: Book 700, page 189 1) Pehle reply: Book 700, page 190 c) American Embassy, London, advises against branch office in Portugal - 2/22/44: Book 703, pages 68,160 United Nations Relief and Rehabilitation Administration- War Refugee Board division of responsibility: State Department memorandum - 2/2/44 271 European Relief: Consistency of instructions discussed in State Department file and transmitted to Pehle by Hayden Raynor, State Department - 2/2/44 276 Self-Help of Emigres from Central Europe, Inc. : Correspondence with - 2/2/44 288 War Savings Bonds See Financing, Government Wise, Dr. Jonah See War Refugee Board 1 February 1, 1944 10:32 a.m. Operator: Here you are. HMJr: Hello. Operator: Here you are, sir. HMJr: Hello. Justice Byrnes: Henry. HMJr: Good morning. B: I told you yesterday that I'd talk to LaFollette and ring you back and I didn't get LaFollette and I simply want to explain why I did not. What do you think of the agreement as HMJr: Well B: to taxes passed? HMJr: my Cnty contact since last night has been with Patterson. B: Yes. HMJr: And Patterson called me up at the house last night and he's delighted. B: I thought from -- Bob was just unduly alarmed and they did a fairly good job. How they -- you can't have everything you want in life. You've got nearly everything. HMJr: Well, Bob Patterson says that -- I haven't talked with Paul -- he says, "I am very much pleased." And he says, "You," to me, he says, "You, Henry, have got every reason to be pleased." B: Well, I.... HMJr: So, I said, "Well, that's good enough for me." B: The -- the Court Review HMJr: Pardon? Regraded Unclassified 2 - 2 - B: The Court Review feature HMJr: Yeah. B: and all the other features looked to me like a durn sight better than we hoped to get out of that conference. HMJr: Well, Patterson, who has been the B: Yeah, he's been the active fellow. HMJr: Active -- and if he's satisfied, why, I've got every reason to be. B: All right, Henry. HMJr: Now, on the other part, Jimmy, I'm meeting with my men this afternoon. B: Yes. HMJr: As -- to let them tell me on the tax features and after I've had that meeting, I'll most likely give you a ring. B: Yeah, I -- I mean, I was thinking of that last night, that my judgment would be that I'd surely be slow about turning down two and a half billion, as much money as you need. HMJr: Well, that's what I B: (Laughs) HMJr: you remember what I told you? B: Yes. HMJr: I think that the President could have gone to the public B: Yes. HMJr: and got public backing on the renegotiation. B: Yes. HMJr: But when the President turns down two billion, three Regraded Unclassified 3 - 3 - B: Yes. HMJr: ....I think that we, here, have got to think very carefully. B: Oh, yes. HMJr: Of course, Paul feels quite aggressive about it, but B: Well, these boys who are on the firing line do HMJr: Yeah. B: always and you can't blame them, but, God, it don't -- if you ask -- if you ask Mother for a dollar and she gives you HMJr: A dime. B: a dime, you're not going to turn the dime down. You go back for ninety cents this afternoon. HMJr: Well, sometime in the next twenty-four hours -- I may not be able to come to a decision this afternoon. B: Yes. HMJr: But sometime in the next twenty-four hours, I'm certainly going to call you up. B: All right. HMJr: But my inclination is that I'm going to hesitate. They've got to put up a stiff argument. B: The burden of proof is on the boys. HMJr: That's right. B: All right. Bye. HMJr: Thank you. Regraded Unclassified 4 February 1, 1944 10:45 a.m. LIQUOR CONTROL Present: Mr. Gaston Mr. Smith Mr. Sullivan Mr. Irey Mr. Graves Mr. Berkshire Mr. Avis H.M.JR: Who is the spokesman here? MR. GRAVES: Mr. Berkshire. He is back from Florida. H.M.JR: I see. "Treasury to Test Cuban, Mexican Gin." What is this story here (Indicating clipping from New York Times of February 1, 1944)? MR. BERKSHIRE: That is the result of a letter. We discussed it here some time ago with Mr. Gaston, a letter to Customs to take samples of this imported Cuban and Mexican gin. MR. GASTON: Instructions went out through Customs that no deliveries were to be made. It is to be held in Custom's custody, all that island gin, until samples have been sent to Washington and the matter has been cleared, because nine-tenths of the stuff is not gin. H.M.JR: What is it? MR. GASTON: It is alcohol with other flavors. They don't have the juniper berries, and it is often polluted. MR. BERKSHIRE: It is very poor stuff, the stuff that we have been talking about here, Mr. Secretary. H.M.JR: Go ahead with your report, please. Regraded Unclassified 5 - 2 - MR. BERKSHIRE: Mr. Secretary, I proceeded from Kentucky to Miami, Florida, arriving there on January 17, according to instructions from Mr. Hannegan, instruc- tions he had passed along from you, stating that you wanted us to proceed to Miami, and from Miami to Key West, and from there to West Palm Beach to clean up the black market situation in that area. Before arriving in Miami, by telephone I had arranged for around twenty-five, I think-that is, twenty-five or twenty-six is accurate--investigators and inspectors who had preceded me there and had made their arrangements over the week end for living. We met in the Judge's courtroom in Miami on the morning of the 17th, organized a force and sent them out in pairs to work Miami and the Miami area, as we had determined from investigation of this 52-B record which discloses the sales by wholesalers, instances of disproportionate sales. That information was passed out to these investigators, and they carried that to the places in order that they might have that information and confront the retailer with the fact that he was getting more than his share of the liquor and also the fact that he was getting above ceiling prices. It is apparent that practically all of the black market originates with the wholesaler. There are excep- tions to that, but that is the rule. The wholesaler charges a bonus price, or an overcharge cash price on the side before he bills it to the retailer within the ceiling price. The retailer must then necessarily sell it in the black market in order to make any profit at all. Now, there is no record of this overpayment--over- charge; it is usually in cash. The examination of the invoices of wholesalers and retailers has disclosed the sale price within the legitimate ceiling, so you have to break down the retailer or somebody in order to get your evidence. The logical place, of course, is the retailer. In most instances, he didn't willingly pay this overcharge; he paid it because he had to have the whisky in order to stay in business, and couldn't get it otherwise. He paid the price and passed it along to the consumer. Regraded Unclassified 6 - 3 - In those cases where the retailer was willing to cooperate after being confronted with this, we endeavored to make a witness out of the retailer. In one case I recall, when our men went in there he recognized them. They confronted him with the fact that he had just sold 8. pint of whisky to a customer for five dollars. He said, "Yes, that is my price, and that is what I will charge you if you want a pint of whisky, and we aren't telling you anything." Suffice it to say, that charges were filed against the concern immediately. We made four good cases against wholesalers in Miami within the first week. H.M. JR: Miami wholesalers? MR. BERKSHIRE: Out of nine wholesalers in the Miami area we made good cases against four. There are other cases against concerns, some of whom did not even have the FAA permit as required by law. On Thursday--I believe it was the 22nd--charges were filed against nine operators in Miami. One or two good cases have been developed since then on investiga- tions conducted in West Palm Beach and also in Tampa. Retailers in those areas were buying from the wholesaler in Miami. To make a long story short, Mr. Secretary, of the wholesalers operating in the State of Florida, cases were made against just about half of them. The retailers, when they bought in the black market, would involve that half, and you never heard of the others, which indicates that there were just about fifty percent of the whole- salers operating in the State of Florida who were charging these over-ceiling prices to the retailer. H.M.JR: Now, let me just stop you 8 minute. All right, you find it is the wholesaler. Now, when the manufacturer sells to the wholesaler, is the manufacturer staying within legitimate prices? Regraded Unclassified 7 - 4 - MR. BERKSHIRE: That is ordinarily the rule. Now, what happened in Florida, and what has happened elsewhere, is that these wholesalers, not being able to get liquor in the quantity that they want from the dis- tiller, in the case of the Florida area, three wholesalers from West Palm Beach, two from Jacksonville area, and one man from New York--we don't know who he is yet--the six of them bought Wathen Brothers Distillers Company at Louisville, Kentucky, and those six operated two large wholesale concerns, one in West Palm Beach, and one in Jacksonville. We were working this out of the Kentucky office, had special investigators from the Kentucky office over there working in conjunction with the Georgia inves- tigators. They definitely made black market cases against both of the wholesale concerns, the one in Jacksonville, and the one in West Palm Beach, who are in turn individual owners of the Wathen Brothers Distillers Company in Louisville. Invariably, the liquor that was sold by these wholesalers to these retailers was liquor which had been bottled in the Wathen Brothers distilling plant in Louisville, Kentucky, and bore the brand name of that distillery, "Old Regards, If "Old Plainsmen," and a couple of others. Whenever we found that liquor on the shelves of a retailer, we knew we had a case. There wasn't any question about it. H.M.JR: Now, what is the penalty? What will happen to these fellows if you prove your case? MR. BERKSHIRE: The case reports are turned over to the District Attorney. I personally conferred with Assistant District Attorneys, the Assistants who were in charge of liquor violations in these areas. They were anxious to proceed with the cases. They will be prosecuted in the Federal Court. We filed complaints against nine in Miami, and seven in Jacksonville, and complaints were being filed-- H.M. JR: You haven't answered my question. What can the penalty be, from so many months to so many years? Regraded Unclassified 8 - 5 - MR. BERKSHIRE: These violations in themselves, the substantive violation is a misdemeanor, Mr. Secretary. But we are proposing, in the case of these wholesalers who purchased this distillery, of charging them with conspiracy to violate the Emergency Price Control Act, which would be a felony. We believe that that case will lie in the State of Kentucky, where there are 8 little better prosecuting conditions for us to operate under. There we think we can have a case that will probably send somebody to the penitentiary. That is what we are hoping to do. H.M.JR: But had this developed and started that these six wholesalers that bought that distillery in Kentucky-- did they have that before you went to Miami, or subsequently? MR. BERKSHIRE: We knew the distillery had been purchased by these men in Miami and Jacksonville, but we did not know until I went down with these investigators that these whole- salers were in the black market to the extent that we found them to be. H.M.JR: That looks to me as though that was developing, that is, something worth while developing from the distillers who are wholesalers. MR. GASTON: Can't we revoke permits? MR. BERKSHIRE: Citations have been filed against every one of these wholesalers with the exception of Pan American in Miami, and that case was made in just the last few days of our investigations down there, McKesson and Robbins of New York. H.M.JR: What do you mean, Pan American? MR. BERKSHIRE: Pan American Distributors is the biggest distributing concern in Miami. H.M.JR: Not the airline? MR. BERKSHIRE: No, sir. McKesson and Robbins have their place in New York. We are proceeding against them there; and in all cases, with the exception of those two--there may be one in Key West, Mr. Secretary--they have already been cited and they are holding hearings in the Atlanta District. 9 - 6 - H.M.JR: How long did it take before you revoked the license? MR. BERKSHIRE: They are all invariably cited to appear fifteen days from citation. H.M.JR: We will have to stop in two minutes. Is there any law which forbids us from telling the story of this group and how they operate? MR. SULLIVAN: No. It is all a matter of public record once the citations are filed, isn't it? MR. BERKSHIRE: Yes. There has been very good publi- city in the papers down there. MR. GASTON: I think we can tell the story there, just about as Stewart has told it, and get a good story in the local papers and on the wires. MR. BERKSHIRE: The only question I have in my mind at all would be the distillery connection back there because they are working on a conspiracy case, although I doubt whether-- H.M.JR: That is your story. MR. GASTON: That isn't all the story. H.M.JR: But it is the whole thing, how these fellows bought a distillery. MR. GASTON: You don't need to name the distillery. I think we can tell the story. MR. SULLIVAN: Are we making arrangements to check the ownership of all other distilleries? MR. BERKSHIRE: Those records are all available to us. H.M.JR: Where are you going next? Excuse me, John. MR. BERKSHIRE: Well, Mr. Secretary, we are working all over the country. We are making good cases all over the country. While I was down there, Mr. Avis here carried on elsewhere. We are having splendid success Deeraded 10 - 7 - in these black market cases. I can say that certainly in Florida we are, and we know in other places, also. H.M.JR: Let's start at San Diego now with a group, thirty or forty men, and work right up through that whole airplane producing district, right up to Seattle, see? I would like to start at San Diego; then go to Los Angeles, San Francisco, Seattle-- MR. BERKSHIRE: We can do that, Mr. Secretary. We probably wouldn't find as fertile a field to work in there as we have in Florida. H.M.JR: You don't know. But, John, it comes under you, doesn't it? MR. SULLIVAN: Yes. H.M.JR: I want them to start with a group of thirty or forty--whatever is necessary, see--start at San Diego and work north. It will be an entirely different picture, I think. You don't know how they are working the racket there. They can't work it with the Cuban rum or alcohol. Maybe it is something quite different. They may have something from Chile. MR. GRAVES: I think they do have Cuban rum and all that. Didn't Bill Bryan tell us that yesterday, Herbert? MR. GASTON: Oh, yes, they have large shipments of Cuban rum and gin. H.M.JR: This is a good start, but it is just a start. I will have to stop. You see that there is a story. MR. SMITH: Well, shall we just make this a part of John's appearance on the Hill? H.M.JR: Yes, that is right. Regraded Unclassified 11 - - 8 - MR. SULLIVAN: O.K., we will go in and go through the exhibit. H.M.JR: I think if you would take the exhibit up on the Hill and make this part of your story-- MR. SMITH: Then we would have the theory and the practical side. 12 JAN 15 1944 Memorandum for the Secretary: In accordance with your request, the following additional facts are submitted relative to the black market situation in Georgia: Investigations of wholesale liquor dealers engaged in black market transactions in the State of Georgia are being vigorously pursued, and evidence upon which suspension proceedings will be instituted, as well as for criminal prosecution, is being assembled as rapidly as possible. Approximately fifty Investigators have now been assigned for this purpose in that area. On January 1, 1944, two attorneys from the Bureau were detailed to the Atlanta district to assist in assembling the avail- able evidence and preparing citations with the view of suspension of permits involved. This work is being expedited. Permit suspension proceedings have already been instituted against the following six distributors in the State of Georgia: R. H. Hogg and Company, Atlanta, Georgia. United Distributing Company, Augusta, Georgia. Dixie Bottle and Beverage Company, Atlanta, Georgia. Regraded Unclassified 13 Memorandum for the Secretary. Page two. Dixie Distributors, Macon, Georgia. Richmond Wholesale Liquors, 1130 Fenwick Street, Augusta, Georgia. Liberty Distributing Company, 513 West Hull Street, Savannah, Georgia. Black market investigations, as previously stated, are proceeding simultaneously in all sections of the country on an extensive scale and are being pressed with the utmost vigor. The additional regulatory measures now in effect, as well as the Bureau- sponsored self-policing program of the industry now in operation, should have a substantial deterrent effect on the black market traffic. These measures, together with the suspension of permits and the institution of prompt and vigorous criminal prose- oution, will, it is believed, go a long way in bringing the black market situation under control. Every effort is being directed to that end. As was indicated in my memorandum of January 12, 1944, nine wholesalers have been under investigation in the State of Florida, which cases have progressed to the point where permit suspension proceedings can be instituted in the very near future. Black market investigations in the State of Florida are being intensified, with particular attention being given to conditions existing in Miami, Palm Beach, and Key West, in accordance with your request. (Signed) Robert E. Wannegan Commissioner. Regraded Unclassified 14 February 1, 1944 11:00 a.m. ABSORPTION OF EXCHANGE CHARGES Present: Mr. Bell Mr. Gaston Mr. Delano MR. BELL: This is on the bill introduced by Brown regarding regulation "Q" of the Federal Reserve Board, absorption of exchange charges by member banks. We sent up a report on Saturday, I guess it got there Monday, because we thought Delano was going to be called. We thought Mr. Delano was going to be called Monday for a hearing, and then they thought that that was going to close the hearing, 80 they wanted the report in. The report went out and got to the Chairman yester- day, and last night at home Mr. Doughton and Mr. Brown both called me - both very angry - saying that this is one of the worst things the Treasury has done - threw & lot of banks out of business. Mr. Doughton said it seemed to him that the Adminis- tration needed all the friends it could get. H.M.JR: May I interrupt you, just for the record? You came to me and asked if you could handle it. Is that right? Yes, you did; you wanted to handle it. You stood right there and said, "Would you mind letting me handle it?" A day or so after Delano - you said you wanted to handle it your own way. I said, "All right." Regraded Unclassified 15 - 2 - MR. BELL: No, you have it wrong. I called you at the farm and you found a memorandum in your file in which I told you - I think last Thursday or Friday a week ago, that it was right on our doorstep. They were calling for a report and they told Mr. Delano that he would have to go before the Committee. So I said we were going to have to have a decision as to what our position is going to be. I told you what this was, and that I thought we would have to say that what we were doing was in the interest of sound banking, and that that ought to be the tenor of our report. H.M.JR: What did you say to me previous to that when you stood here? I said I wanted, after I heard the thing my inciina- tion was - I am trying to clarify my own mind - my incli- nation was to say that the law is under statute, we have to go through with it. MR. DELANO: You said that to me. I remember that. MR. BELL: At our first conference. Then Doughton called you. H.M.JR: And then you came in subsequently, all alone, and said, "Do you mind just letting me handle this thing my own way," or words to that effect. MR. BELL: I don't think 80. H.M.JR: Well, anyway, don't you remember coming in here all by yourself? MR. BELL: No, I don't. I don't have the slightest recollection. H.M.JR: I do. I didn't make any notes. Regraded Unclassified 16 - 3 - MR. BELL: And I asked you to let me handle it? H.M.JR: Yes. Well, anyway-- MR. BELL: I may have said to let the thing ride for awhile, because we weren't in the picture up to that time. That is, we had been asked for a report, but not to appear before the Committee. I am sure I said at the time that Delano was here, that I think we ought to let it drag because we ought to stay out of it if we are not asked to appear. Then it looked as though we were going to be aske to appear. MR. DELANO: Just supplementing that, Spence called me up on Saturday, I think it was, or maybe Friday, of the previous week and said that they were going to resume the hearings on Monday and would I stand by him and be ready to appear. That is what I have been doing ever since, you see. MR. BELL: Well, it was intimated last night by Spence to Brown, and it gets to Doughton, that this report hadn't yet got into the hands of the Committee. It was in the hands of Mr. Spence and he thought the Treasury ought to withdraw it. I said, "Well, I don't know whether that could be done or not." I said I would like to talk to you about it. I question whether that could be done, because I am sure Wilcox knows about it. He is standing around the Committee all the time. That would probably be out in the paper that we were forced to withdraw our report. I think probably the best thing to do is to stand by it and go up and testify. They said that Brown threatened to subpoena a lot of people in the Treasury - - me, and Delano - didn't mention you, but sort of intimated they would go to the top and thrash this thing out before the Committee. I think that is about the only thing we can do. Regraded Unclassified 17 - 4 - MR. GASTON: Who is Brown? MR. DELANO: Representative Brown of Georgia. He is the active protagonist of this whole thing. H.M.JR: Supposing he is. I don't see how anybody - I mean, I don't know what has happened more recently, but after all, here is & law of the land. The Federal Reserve - I may not have my history right, anyway - are now saying they want the thing enforced. You are the enforcement agency. MR DELANO: That is right. H.M.JR: If Mr. Brown, or Mr. Smith, or Mr. Jones doesn't like it, let them have it struck off the books. MR. BELL: I think that is right. H.M.JR: Every time, in ten years, I have watched, when a fellow tries to do the popular thing he gets stuck. We are an enforcement agency; that is & law. I am not saying whether it is a good or bad law. "If you don't like it, Mr. Brown, have it struck off the books." If they say, "Well, why didn't you enforce it before?"-- MR. DELANO: We have an answer. MR. BELL: I think we have a pretty good record on it, because joint regulation wasn't issued until '37. We sent our first case to the Board in '38, and didn't get a ruling until September, '43. In the meantime many other cases had piled up. In the meantime many of the banks, on their own, had thought the regulation was right and had eliminated the charges. H.M.JR: Well, I wouldn't worry about it. The fact that Walter George is sore at us - I think he has been sore at us now for months-- 18 - 5 - MR. BELL: Yes, this just comes on top of all that. That is the unfortunate part about it. They said the Treasury is not gaining any friends at a time when they need them, making the people sore that give you their money. They went into a long rigmarole. MR. DELANO: That is just the vociferous minority talking. It is Brown; and of course, Spence is wobbling all over the place. He really is & pretty inarticulate old man. Do you know Spence, who is Chairman of the Committee now - succeeded Steagall? MR. GASTON: No. MR. DELANO: He is sick and non compos mentis part of the time. MR. GASTON: Regulation "Q" is a regulation of the Federal Reserve Board? MR. DELANO: Yes, against absorption of exchange by member banks. MR. BELL: This is one short paragraph that went up, if you want to read it. (Refers to letter to Mr. Spence, January 29,1944, signed by Mr. Bell as Acting Secretary) H.M.JR: Did I sign it? MR. BELL: No, I signed it. It came through for your signature and came back late Saturday evening and I signed it as Acting. H.M.JR: All right. I am not going to get in this. There are too many other things. MR. BELL: I thought that is the way you would view it, but I wanted you to know what is happening and we may be called up. H.M.JR: O.K. Thank you, that is all. Regraded Unclassified 19 February 1, 1944 12:13 p.m. HMJr: Yes. Ted Gamble: One: Today is the halfway mark of our Drive. We shall report tonight our first Corporate sales. HMJr: Yes. G: I thought it would be appropriate to get out a very good statement for you HMJr: Yes. G: commenting on what individuals have done up to now. HMJr: Yes. G: The fact that we have fifteen more days to go on individuals. HMJr: Yes. G: And patting the people on the back and compli- menting favorably the results up to now. HMJr: Good. G: Because they are going to be good. But I HMJr: Well, will you work it out with Fred Smith? G: Yes, sir. But I wanted your "green light". HMJr: You've got it. G: Fine. The second thing: Burgess has talked to me from time to time about the possibilities of an informal visit from you during this Drive and I know of our talk the other afternoon and I have hesitated to bring it to your attention. HMJr: No, I don't think I'm going to be able to do it, Ted. I'll know now, in a day or two, what I'm going to do. See? G: Fine. Regraded Unclassified 20 - 2 - HMJr: But I doubt very much that I'm going. to do any more than be able to do the round-up for you. G: Right. Well, I -- I've given him no encouragement but HMJr: Well, I.... G: just wanted to advise you in case he did call you. At least we would have chatted about it. HMJr: Well, I appreciate that but I -- I -- I certainly can't do the -- a day in New York. The boys would want me -- talking about a radio program on the 15th of February. G: Yes. HMJr: I might be able to do that but that -- that's only -- well, one chance in four. G: Fine. HMJr: But I can't go through again getting my script at -- just before I go on. G: Well, I agree with you, sir. HMJr: And, although the one that we did ourselves was all right. G: Turned out fine, but you can't HMJr: The one with the Gulf -- I mean to get the stuff that -- well, some of the stuff at seven o'clock. G: Yes. HMJr: But the one that I did -- I mean, the Treasury handled was beautifully handled. G: Yes. HMJr: But anyway, you go ahead and you and Fred fix me up me up a statement. G: Fine. We'll do that. HMJr: I'll be around here until around four and if it's available, I'd like to see it. Regraded Unclassified 21 - 3 - G: We'll see that you do see it. HMJr: And on New York -- spending a day in New York, you'll just have to stall on that. G: Yes, well, I'm doing that but I wanted to bring you up to date on it. HMJr: Thank you so much. G: All right, sir. HMJr: Good bye. Regraded Unclassified 22 February 1, 1944. MEMORANDUM FOR THE FILES: Secretary of War Stimson had a luncheon in his office today attended by the following: Secretary Morgenthau, Secretary Stimson, Assistant Secretary of War McCloy, Mr. Bundy of the War Department and Mr. Pehle of the Treasury. During the luncheon Secretary Morgenthau explained that he had asked that this meeting be held in order to bring Secretary Stimson and his assistants up to date on what the Treasury has been doing on war refugee matters. He asked Pehle to summarize for Secretary Stimson the items in the attached memorandum dealing with accomplishments to date. Most of the items included in this list were subject to discussion by those present. Mr. Bundy asked for an explanation of the British attitude as reflected in its recent cables and particularly whether the British were "dragging their neels" because of the impact of the evacuation question on the Palestine problem. It was explained that there seemed to be every indication that the Palestine problem was at least one of the basic reasons why the British had been reluctant to take effective action to evacuate Jews from occupied Europe. Mr. Pehle is sending to Mr. Bundy some of the background cables on the British attitude for his information. During the meeting, as an example of the attitude of some of the private organizations and their willingness to cooperate with the War Refugee Board, Secretary Morgenthau read the letter of January 24 from Charles R. Joy, Acting Executive Director of the Unitarian Service Committee. Mr. Pehle also summarized for Secretary Stimson the various committees and intergovernmental organizations set up to deal with this problem and the persons appointed by the President to work on such problems, including James G. McDonald, Myron C. Taylor, George Rublee, etc. The attached chronological memorandum gives some of the details with respect to the committees set up by this Government. Secretary Morgenthau mentioned the $100,000 contribution by the Hebrew Sheltering and Immigrant Aid Society. Mr. Stimson agreed that these funds should not be used for administrative expenses but should be used for relief or evacuation operations. Following this discussion, Secretary Morgenthau asked Pehle to step out while he discussed the problem of getting an executive director. Secretary Morgenthau told Mr. Stimson that if Frank Graham was not available he would like to have Pehle take over the job. Stimson said that it would be agreeable to him if Frank Graham was not available to have Pehle take over the job on a two or three Regraded Unclassified 23 - 2 - month's trial basis and Secretary Morgenthau might advise the President accordingly, 13 24 January 31, 1944 1 Accomplishments to date 1. We have worked out with the World Jewish Congress 8. program to e vacuate refugees from France into Spain, Switzerland and North Africa and from Rumania. Appropriate licenses have been granted authorizing the necessary operations. 2. We have worked out with the JDC a program to evacuate 5,000 to 6,000 abandoned children from France and to sustain their lives, pending evacuation. Licenses have been granted per- mitting these operations up to 8. total cost of $600,000 for the next six months. An initial remittance of $200,000 has been sent to the JDC representative in St. Gall, Switzerland, and operations are now under way. While some of these children may be evacuated to Spain, the majority will probably have to be evacuated to Switzerland. Before Switzerland will agree to admit the children, it re- quires receipt of assurances from some other government that the children will be reevacuated after the war. The Treasury is working on 8. method whereby the necessary assurances can be given by this Government. 3. We have worked out a program to evacuate Jews from Poland to Hungary. The Union of Orthodox Rabbis of the United States and Canada has been authorized to communicate with and to send funds to persons in Hungary who are in a position to assist refugees across the Hungarian borders into Hungary where a. Jewish community of over 1,000,000 people is ready to help and absorb the refugees into the Hungarian economy. $100,000 has been sent to Switzerland to cover these opera- tions. With State's approval, direct transfers of free ex- change into enemy or enemy-occupied territory have been authorized for this program, if it is impracticable to obtain the necessary local currency in Switzerland or in Hungary against payment after the war from & blocked account. Thus we have obtained State's approval of a practical and effective method to finance underground operations. 4. We have sent a message to our representative in the Vatican giving the necessary assurances that funds will be forthcoming for the immediate relief of destitute Jews in Rome. This will enable relief activities on behalf of these Jews to begin at once. Regraded Unclassified 25 - 2 - 5. We worked out the financial details of 8. program handled by the JDC for the purpose of evacuating refugees from Spain to Palestine. 750 of these refugees have already left Lisbon on the "Nyassa." 6. We worked out with the JDC & program to bring relief to refugees in Transnistria. Funds have been sent by the JDC to the Inter- national Red Cross delegate in Ankara for the purchase of 250 tons of foodstuffs in Turkey, to be distributed among the in- ternees by the International Red Cross. We are presently working on an expansion of this program so as to provide food distributions to internees in Thereisenstadt, Yugoslavia and Greece. 7. We have sent an urgent message to the International Red Cross, Geneva, stating that the War Refugee Board is prepared to see that funds are made available at once to the International Red Cross to provide food and medicines to persecuted groups in German-occupied areas who are denied the facilities avail- able to the rest of the population. 8. We are working with the World Jewish Congress on a program to evacuate Jews from Transnistria to Rumania in order to move them from the path of the retreating German army. It is be- lieved that thousands of Jews can be saved from death in Trans- nistria. In fact, we have just received a report that 6,400 internees, including 400 children, have already been evacuated from Transnistria to Bucharest and that 500 more are expected to be moved in the next few days. In addition, 200 Polish refugees have been moved from Bessarabia to Bucharest. These operations appear to have been handled with the cooperation of the Rumanian Government. 9. $100,000 has been received by the Treasury, as private contri- butions for the work of the War Refugee Board. O. At our suggestion, the Department of State has sent very strong instructions to our Missions in the four neutrals, London and Turkey, repeated to all other Missions, informing them of the new Board and requesting full cooperation in effecting the policy of the Government as stated by the President. 1. We have furnished the War Department with suggested instructions to the appropriate Theater Commanders asking the latter to do Regraded Unclassified 26 - 3 - everything possible, consistent with the successful prosecution of the war, to effectuate the Government's policy to take all measures to rescue the victims of enemy persecution. 12. The Secretary of the Treasury has sent messages to the Treasury representatives in London, Stockholm, Ankara, Lisbon, Cairo and Algiers asking them to do everything possible to a ssist their Missions in carrying out the policy of immediate rescue to the victims of enemy persecution. 13. A cable to London has been drafted and is pending in the State Department requesting Ambassador Winant to discuss the situa- tion with the British and suggest to them that they send in- structions to their Missions along the same lines as the instructions to our Missions. 14. We have been in touch with the following organizations who are working out specific operations and programs with us: World Jewish Congress American Jewish Joint Distribution Committee American Jewish Conference American Jewish Committee Jewish Labor Committee Unitarian Friends Service Committee 15. We are working with UNRRA on the problem of making use of the Fedhala camp in North Africa which has room for several thousand refugees. 16. We are submitting to the War Department today a program for the rescue of some 1,500 refugees on the Adriatic Island of Rab. 17. We have made all necessary arrangements with Budget for the allocation of $1,000,000 from the President's Emergency Fund to the War Refugee Board. Regraded Unclassified 27 LIAM EMERSON, Chairman EDWARD B. WITTE, Treasurer H T. GANO, Vice-Chairman ALFRED F. WHITMAN, Secretary UNITARIAN SERVICE COMMITTEE 25 Beacon Street, Boston 8, Mass. TELEPHONE CAPITOL 3660 ERT C. DEXTER Registered with the President's Executive Director War Relief Control Board RLES R. JOY Endorsed by National War Fund cting Executive Director Through Refugee Relief Trustees, Inc. January 24, 1944 The Honorable Henry Morgenthau, Jr. Secretary of the Treasury Washington, D.C. Dear Mr. Morgenthau: The appointment by the President of & War Refugee Board consisting of the Honorable Secretaries of the Departments of State, Treasury and War and directed to take all measures within their power "to rescue the victims of enemy oppression who are in immediate danger of death", is an act of wise charity and clear vision. The Unitarian Service Committee, which has for years considered the rescue, transportation, maintenance and relief of such persons its major responsibility, is profoundly interested. Working with a carefully chosen and competent American personnel in Czechoslovakia, Switzerland, France and Portugal and cooperating closely with other American and foreign relief agencies in these and other foreign countries, it has helped thousands of endangered refugees to escape from the clutches of their persecutors. It has worked with the Governments in Exile, the High Commissioner for Refugees under the Protection of the League of Nations and all other authorities concerned with these unfortunate persons and has had wide experience in solving their problems. Since, by the terms of your mandate, you may accept the services or contributions of any private persons or organizations, the Unitarian Service Committee feels impelled to offer you any assistance within its power. Generously supported by the National War Fund of which it is & participating member, operating on 8. wholly unsectarian basis, and dedicated to the service of the racial, religious and political minorities of Europe, the Committee is now ready to place itself entirely at the disposal of your Board to assist you in any possible way. Our personnel, our resources, our experience, are at your command. Regraded Unclassified 28 COPY - 2 - 80, 1.38. President Hoosever's Impoires of the goverants st PREDE and rettimunat The Committee would welcome the opportunity to discuss with you the areas of possible cooperation. intergovernmental Comples which would seek to introduce Respectfully yours, micration of politions was returnes from central /s/ Charles R. Joy 2820, The Provident's AGV Acting Executive Director CRJ:DRF Political wills 163 virst desting, the following belief 34 attentance: James Co. Hamilton Floh Areatrons, Panl incomit, Joseph P. Chamberlais, Babil James 31. Speare, and Webbt Stephen S: 2100. Dir. heade this Countries, 4017 6, 1038. Reprosentative: wb chirty-three covern- meals meet at Evian. The United States we represented by Myron C. Taylor, be Rubert Yeli And George Brandt of the State Department. December 1888. Goorge Rubley, taxas 10 his duties in London AS director the Intergovern+ montal Committee sei - st kvian. Me was.atimed to this post by the President, and continued AS director until February 1989, when he WAR орасендай by Sir Horbort Seerson. October 17, 1989. Officers st Into & Committee meet at shite House. Lord chairman, Kyroa C. Taylor, vice and Jame G. Wellons 14, cluirman of the Advisory Committee are among those present. Innuary 1812. Intergovernmental Committee meets at Cuided Trujillo, Dominican Republic, Among thase addressing the mesting 170 Regraded Unclassified 29 COPY March 23, 1938. President Roosevelt inquires of the governments of refuge and settlement whether they would be willing to join the United States in setting up an Intergovernmental Committee which would seek to introduce order into the forced migration of political and religious refugees from central Europe. May 16, 1938. The President's Advisory Committee on Political Refugees holds its first meeting, the following being in attendance: James G. McDonald, Hamilton Fish Armstrong, Paul Baerwald, Joseph P. Chamberlain, Basil Harris, James M. Speers, and Rabbi Stephen S. Wise. Mr. McDonald heads this Committee. July 6, 1938. Representatives of thirty-three govern- ments meet at Evian. The United States was represented by Myron C. Taylor, assisted by Robert Pell and George Brandt of the State Department. September 1938. George Rublee, takes up his duties in London as director of the Intergovern- mental Committee set up at Evian. He was named to this post by the President, and continued as director until February 1939, when he was succeeded by Sir Herbert Emerson. October 17, 1939. Officers of Intergovernmental Committee meet at White House. Lord Winterton, chairman, Myron C. Taylor, vice chairman and James G. McDonald, chairman of the Advisory Committee are among those present. January 1941. Intergovernmental Committee meets at Cuidad Trujillo, Dominican Republic. Among those addressing the meeting are Regraded Unclassified 30 - 2 - George Warren, representing the Advisory Committee. March 27, 1943. The U. S. and British Governments agree to meet at Bermuda to consider the refugee problem. April 19, 1943. Bermuda conference opens. U.S. delegation consists of Harold Willis Dodds (president of Princeton University), Senator Scott Lucas (Ill.), Representative Sol Bloom (N.Y.), and R. Bordon Reams (State Department) May 19, 1943. Bermuda conference terminated. Details of determinations are considered con- fidential. Regraded Unclassified COPY 31 FEB 1, 1944 MEMORANDUM FOR SECRETARY OF WAR STIMSON Re: Making Funds Available to Refugees on Island of Rab. I wish to preface my discussion by saying that in December the Joint Chiefs of Staff were approached at the instance of the Intergovernmental Committee on Refugees with a comprehen- sive project to rescue refugees from the Island of Rab. This plan would have necessitated direct assistance upon the part of the military authorities involving questions of transport, etc. On this basis the Commanding General in the North African Theater of Operations decided that the military situation did not permit the operation contemplated. However, since the proposal which I am about to make is entirely different and much simpler than that rejected by the Commanding General, and in view of our Government's policy with respect to refugees announced at the time of the establishment of the War Refugee Board, I recommend the following for your urgent consideration. Information we have received indicates that there are presently some 1500 refugees, mostly Jewish, on the Island of Rab in the Adriatic off the Dalmation coast. They apparently were taken there some time ago by Yugoslav Partisans after being freed from internment. The Island has changed hands several times, but it is understood to be again in the posses- sion of the Partisans. It is believed that many of such refugees might be able to hire beats to bring them to Italy if they had the neces- sary funds. Similar escapes apparently have been arranged by Yugoslav refugees now in Italy. Funds are available to the War Refuges Board, and probably also from private organisations for this purpose and, if possible, should be sent to these refugees as soon as possible. Às & method of accomplishing the foregoing, I suggest the following possibility. It means of communication exist between our armed forces and the Ingeslav Partisan leaders, it is suggested that you or the Theater Commander transmit a message to the latter requesting. - Regraded Unclassified 32 - 2 - (a) that the Partisans furnish local currency to refugees on the Island of Rab so that the latter may by their own efforts arrange escape to Italy, it being understood that such expenditures will be reimbursed In U. S. dollars or in such other money as the Partisans request; (b) That the Partisans, in the event they cannot furnish necessary local currency, aid the refugees in arranging escape by guaranteeing to the boat owners and other persons assisting in the escape that payment will be made to them by the American military authorities upon arrival of the refugees in Italy. (c) That the Partisans keep the appropriate American military authorities advised of their operations in this field. It will, of course, be necessary for the Theater Commander to make arrangements for payments in Italy in certain cases to persons bringing refugees there from the Island of Rab, and possibly for certain other financial transactions. It is also essential that the Theater Commander continue his policy of caring for any refugees who may be able to reach Italy as the result of their own efforts. Such other assistance as he may be able to give will, naturally, be extremely valuable. It may be made perfectly clear that the War Refugee Board assumes full financial responsibility for the expenses of evacuating the refugees from Rab and will reimburse all outlays. If you think that the procedure indicated is feasible, I am sure that you will agree that it should be executed as promptly as possible in view of the uncertainty of the continued possession of the Island of Rab by the Partisans. This has been cleared with Mr. Stettinius who is in agreement. 12/ H. Morgenthau, Jr. (Carried by Secret Service Agent) 2-2-44 Regraded Unclassified 33 COPY THE UNDER SECRETARY OF STATE WASHINGTON February 1, 1944 Dear Mr. Secretary: The Department has had under consideration and has discussed with the British & project for assist- ing Jewish and other refugees now located in France and Rumania. While these plans have not taken defi- nite form, it is proposed that efforts be made to enable the persons in question to leave Rumania and France and be transferred to places of temporary residence in the colonies formerly occupied by the Italians. The Department has been informed that there are at the present time in North Africa par- tially abandoned cities where buildings and water supply exist and where food could presumably be sup- plied by the United Nations Relief and Rehabilitation Administration. This plan, to be successful, would, of course, require the close cooperation of the mili- tary authorities. We were just on the point of communicating with the Joint Chiefs of Staff to obtain an expression of opinion from them regarding locations in North Africa which might be made available for this purpose and al- so as to whether there might be any valid military ob- jections to such an undertaking. In connection with this plan, the problem of transportation is, of course, an important one since refugees might arrive out of France into Spain or out of Rumania into Turkey in considerable numbers. We had also intended to raise with the Joint Chiefs of Staff the question of transportation to determine whether or not the military might be able to make ship- ping available for this purpose. Our experience would seem to indicate that complete dependence could not be The Honorable Henry Morgenthau, Jr., Secretary of the Treasury. (Original to Mr. Friedman - 2/7/44) Regraded Unclassified 34 -2- placed on the utilization of neutral shipping for this purpose. As you know, neutral shipping has been used in the past especially from Portugal to African destina- tions, but it seems doubtful that a considerable volume of refugees could be handled through that means along. In view of the creation of the War Refugee Board, it would seem more appropriate to us that this proposal now be made by the Board to the Joint Chiefs of Staff, if the Board decided to pursue the project, particularly as the War Department is represented on the Board. Sev- eral members of our staff are quite familiar with the details of the preliminary discussions and studies which have taken place on this matter in the past and will, of course, be glad to confer with representatives of the Board on the matter. With best wishes, Sincerely yours, /s/ E. R. Stettinius, Jr. Regraded Unclassified 35 DEPARTMENT OF STATE OPY THE UNDER SECRETARY February 1, 1944 Dear Mr. Pehle: I am attaching here- with a copy of the tele- gram to the Embassy in London regarding the War Refugee Board which we discussed over the tele- phone yesterday. /18/ HAYDEN RAYNOR Hayden Raynor Special Assistant U:IJ Regraded Unclassified 36 COPY TELEGRAM SENT PLAIN January 31, 1944 AMEMBASSY LONDON 774 - Thirty-first. The following telegram is sent at the request of the President's War Refugee Board: Refer to Department's cable 634 of January 25 con- cerning the President's Executive Order establishing the War Refugee Board and declaring the policy of this Government. In discussing this matter with the British Foreign Office, you are requested to make it clear that the establishment of the War Refugee Board represents this Government's determination to effectively arry out without delay the policy heretofore agreed upon by the two Governments to take all possible measures for the speedy rescue and relief of the refugees of Europe. Although this Government on its part intends to take all possible action with all possible speed, we hope that this effort will not be unilateral and we wish to make it clear that it continues to be the policy of this Govern- ment to encourage and participate in effective cooperative efforts with other governments. As the President has stated, the Board of course will cooperate fully with the Intergovernmental Committee and other interested international organizations. You are requested to make clear to the British Government the position of this Government and our desire for its cooperative action. You should explore with the appropriate officials of the Foreign Office the possi- bility of implementing such cooperation through the issuance by the British Government of a declaration of policy similar to that made by the President and the issuance by the Foreign Office of instructions to its representatives in other countries comparable to the instructions contained in the Department's telegram 634. Please keep us informed of the attitude of the British on this-matter. U:HR BC HULL(ES) Regraded Unclassified 37 2/1/44- NAMES RECOMMENDED BY MR. PAUL BAERWALD Cleveland Dodge, Phelps, Dodge & Co. Frank Adelot, Princeton Harry Fosdick Paul Hoffman, Studebaker Company Eric Johnston, U.S. Chamber of Commerce Mr. Rublee Earle Harrison, Commissioner of Immigration Allan Warwell Homer Folks John Foster Dulles Sosthenes Behn, International Telephone Basil Harris Herbert Stanley, International Nickel Regraded Unclassified 38 NAMES RECOMMENDED BY DR. WISE James D. MacDonald Hamilton Fish Armstrong Rufus Jones Clarence Pickett Frank Graham John Pehle 39 NAMES RECOMMENDED BY MORRIS ERNST Russell Leffingwell Stassen of Minnesota Bill O'Dwyer Frank Graham Raymond Gram Swing Walter Lippmann Learned Hand Sumner Pike Governor Edison Jerome Frank Charlie Poletti Henry Wallace Leon Henderson Bill Douglas 39 NAMES RECOMMENDED BY MORRIS ERNST Russell Leffingwell Stassen of Minnesota Bill O'Dwyer Frank Graham Raymond Gram Swing Walter Lippmann Learned Hand Sumner Pike Governor Edison Jerome Frank Charlie Poletti Henry Wallace Leon Henderson Bill Douglas 40 TREASURY RECOMMENDATIONS James Landis Frank Graham Wendell Wilkie Harold Stassen Summer Welles Lloyd K. Garrison Leen Henderson Joseph L. Davies Eugene Meyer Col. Charles Poletti George Norris Joseph Baldwin Charles Edison Clarence Dykstra Charles Taft Josephine Roche Jenathan Daniels Gev. M. s. Saymenak William 0. Douglas James Gerard Regraded Unclassified 41 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE FEB 1 1944 Secretary Morgenthau ROM J. W. Pehle I think you will want to look at the attached statement of Congressman Celler in which he comments at length on Breckinridge Long's testimony before the House Committee on Foreign Affairs. Regraded Unclassified Entrance of Refugees Into the United States SPEECH OF HON. EMANUEL CELLER OF NEW YORK IN THE HOUSE OF REPRESENTATIVES Monday, January 24, 1944 Mr. CELLER, Mr. Speaker, Mr. Breckenridge Long, Assistant Secretary of State, appeared before the House Foreign Affairs Committee on Novem- ber 26, 1943, and testified concerning House Resolution 350 and House Reso- lution 352. His testimony has been printed, and in reading that testimony I find thereih so many faults and errors with reference to the subject matter of the resolutions in question that I deem It incumbent to point them out and high- light them. They indicate a culpability that cannot go by unnoticed. They must be corrected, because they caused grave and erroneous impressions in the minds of the committee members, and false no- tions in the minds of the public gener- ally. They seem to indicate not only a lack of appreciation of the subject mat- ter of the resolutions but seem to Indi- cate that the gentleman, in questions in his testimony, went pretty far afield in 43 404 CONGRESSIONAL RECORD-APPENDIX JANUARY 25 is desire to bolster his forced and false years. Not slace 1863 have Texas trans- shall be permitted entrance If the per- onclusions. A little research would grants come to our country. At a time son Intending to enter has relatives in ave told him of his blunders. He de-, when mass murders in Pestung Europa Axis-controlled Europe, and he laid erves condign criticism. It indicates were greatest, in 1943, when the doors of down as a condition precedent to en- hat he is no longer entitled to hold refuge should have been kept open, they trance that the Interdepartmental Visa way over refugees and visas. For ex- were deliberately, practically closed. and Control Committee cannot permit mple, he said, in his testimony as is Only 5.9 percent of all immigrants ad- entry If the Intended Immigrant has ppears on page 32, as follows: missible came in to that year. Nobody la such A. relative in Nazi-controlled Eu- We have been interested in refugees. and I asking for any change in the immigra- rope. Tpão facto, that regulation cut sink there has been some indisposition on Uon statutes. We are saking changes in off well-nigh 90 percent of all potential be part of some officers to accept a thought the impossible conditions and cruel, refugees from Europe. Be advised that bat the American Government ought to «po- cold-blooded regulations that are laid most refugees have some relatives in lalim and make It particularly direct that down M to "screening" by the Depart- are Interested only in the Jews. We have Axis-controlled Europe. That regula- it from the start that we could not exclude ment of State, and particularly by Mr. tion in and of itself cut down immigra- ther persons from our governmental and Long. tion to the bone. Mr. Long had the Incial activities. However, because of the richly de- hardihood to say that he was still adher- served efitioisms brought against Mr. ing to the historic attitude of the United On page 45 appears the following as Long, I an happy to ntate that those to States as & haven for the oppressed. dr. Long's testimony: Authority In the Department of State are Frankly. the Statue of Liberty in New The State Department's policy, 1 think, about to decree that Mr. Long shall no York Harbor is supposed to hold up a just be that we cannot exclude persons from longer be in charge of refugees and visas. Mght beside 5. golden door to welcome ur sympathy and our sympathetic attention they are not Jews. As proof positive of the blunder made by the tempest-tossed of all lands. If Mr. Mr. Long when he undertook to state Long has his way, that light will have No one asked Mr. Long or anyone con- what he thought was the attitude of the to be blotted out and the Statue of Llb lected with the State Department to ex- State Department with reference to ref- crty can no longer welcome In Immi- lude non-Jews. I think It la degrading ugees, we find a member of the Cabinet grants to this country nd shameful that an official of our ad- in a different Department, Mr. Biddle, Mr. Long ruled that the Interdepart- ninistration should imply, much less the Attorney General, taking tssue with mental Visa Control Committee could ver, that we intend to withhold aid from him. Mr. Biddle emphatically and not give A reason for rejection of an Ad- ion-Jews. We are in favor of aid to all scorchingly took issue with Mr. Long. plication for a visa for a refugee. It ersons, but beyond that, and not as is You can see how serious was the mis- takes months for applications to be ubstitute, we want a special and an es- chief. It is rare that & Cabinet officer acted upon. Five departments must re- raordinary aid concomitant with espe- challenges the statement of any Assist- port on each sponsor and each tmm) dal and extraordinarily cruel treatment ant Secretary. It is only done when A grant, whether the latter be in Europe Jews and all others threatened with serious and dreadful error has been or in this country or wherever be may be eath. No minority people are treated made. The Departments involved are the State cruelly as the Jew. All others are In B Mr. Long has sought to give the Im- War, Navy, and Justice Departments, prison, but the Jew is in a death charp- pression that we had received in 10 years and the F. B. I. Each Interdepart- er. All others may with victory ulti- 580,000 Immigrants and that most were mental Visa Committee is composed of nately breathe free, but the Jew Is In B Jowish refugees. The 580,000 mentioned representatives from each of these five harnel house-most of them already are by Long include visas authorised for entitles. It. takes at least 6 months be- a sepulcher. quota, nonquota persons, and those in fore the investigation is completed. A The gentleman from California [Mr. transit. Often a visa authorized is not hearing is held. The sponsor for the ROCERS), who is present in the Chamber, Issued. One Issued is frequently not even immigrant or his lawyer appears and as offered one of the aforesaid resolu- used. Mr. Long, without even ao much pleada. It takes months for 5 decision lons providing extraordinary treat- as "by your leave," bunched transients, to be reached. Then no reason La given nenta for those who are being extraordi- visitors, and conquota entrants and or- for 1 rejection of the application. If harily and cruelly treated. It calls for dinary immigrants with refugees. He national security is involved, of course, he establishment of a special board ap- thus gave the impression that we gave no reason should be given, but if that pointed by the President to find havens sanctuary to 580,000. That was utterly is not in the case, why should not a and refuge for the victims of Naxi tyr- false. Mr. Biddle explained that within reason for the turn-down be net forth no anny. The President in his wisdom Bat- the last 10 fiscal years the average num- that, If possible, the causes of refusal arday last, by Executive directive, set up ber of quots and ponquots immigrants of entrance might upon a renewed appli- he War Refuge Board, similar to the was only 26,647, although the annual cation be removed. authority the gentleman from California quots was 153,774, and that in the year Purther, no application can be re- Mr. Roomal advocated, and the Presi- ending June 30, 1943, only 23,725 persons newed until 6 months have elapsed. If dent stressed in an accompanying state-, entered the country, 12,000 of them being finally, in many Instances the applica- ment to his directive the very details that nonquota. Mr. Biddle added: tion, after all these vicimitudes, is drant- are embodied in the so-called- During the same 10-year period the an- ed, it is granted for a corpse. In every resolution, and he asked directly and by court & reason is given for an adverse de- Inference that especial treatment be nc- nuel average number or persons emigrating from the United States was 34,000, leaving a claion. But before Mr. Long and his set- torded the Jews, who are being helnously net Increase of 28,287 immigrants. More- up everybody is kept in complete dark- ortured and pillaged and plundered by over. while in 1920 the alsons constituted nem. Purthermore, 50 percent of the Hitler and his Chilslings. 6.9 persens of the population in the United Judgments of the Interdeparimental Further, on page 22 of the testimony States, et the present time they comprise of Mr. Long we find the specific state- little more than 3 percent of the popula- Committees, the visa-control commit- ment: Non. teas, have been reversed by the Presiden- tial Board of Appeals. clearly indicating The point to made that the bistorie stttcude In contrast to Mr. Long, Mr, Biddle that in at least 60 percent of the cases pt the United States in providing a haven to gives facts, not fancy, the oppresaed has not been stopped. The which were controlled by Mr. Long, be It la ODE thing for the Congress to State Department has kept the door open. It was wrong. and that the application 1450 acts with reference to Immigration, perfectly acreened. The door to should have been granted and not turned open. There are vaolocies ed the and is is another thing for those to down. These appeals consume more val- list of quotas. charge of the administration of the unble time. Meanwhile Hitler's hangmen statute so to administer H as to deny That la an astonishing statement and do not walt. the intent of Congress 66 embodied in does not square with the facts. The the statute. Mr. Long, for example, net Mr. Long testified as follows, also on "door is not open." It is $ a ting, a up all manner and kinds of conditions page 22: Pery tiny crack, For example, fower im- and restrainta with reference to the ND- Mr. Lows. In December 1041 most neutral migrants entered during the past fiscal plications for entering of immigrants, shipping disappeared from the, seas. Prior than entered durthg the last 00 and among them be said that no one to that there had been neutral shipping, and 44 944 CONGRESSIONAL RECORD-APPENDIX A405 me American ships have been running: but STATEMENT IT THE COMMISSION ON REMOUR OF The failure to INSURE Jewe from the Balken of that time there WM practically noth- THE AMERICAN twax Communica countries was not attributable entirely to the DE- There are today a few tittle Spanish opposition of the Name, as Mr. Long's tostl- nd a few little Portuguese vesaols which are mony has Indicated. It le known that red. oming in here, and the State Department tape and delay on the part of the British ontinues to issue visas to refugees. We are In presenting statistics on the number of authorities were responsible for the fact shee muing visas to the extent of about 100 e refugees admitted into the United States, Mr. full advantage was not taken of all the op- Long gave the State Department's total- eek. portunities presented. Mr. MUNDT. The limitation of 100 per week 580,000 in & 10-year period-of visas Issued, quota, nonquota, and even transit. Let us Mr. Speaker. at this point I desire to now Imposed by the shipping limitations ather than by any limitations of the State dwell a bit, again, on these figures. I must offer the Alde-Memoire of the American Department as to the number of visas avail- set the record completely straight. Jewish Conference, which I adverted to (ble? To whom were these visas issued? Mr. heretofore, and for which 3 have received Mr. LONG. The movement of the people bas Long's testimony tended to create the er- unanimous consent to include in the iopped. roneous impression that all 580,000, were Jews. RECORD as my own remarks: or the 680,000 visas issued, only 476,980 were That statement does not square with used by immigrants. or the latter. about AMERICAN JEWISH the facts. Mr. Long is wrong when he 200,000 wordrefugess from Mitlerism, and not ON JEWISH ays that visas were being issued to the all of them were Jews. Purthermore, 16 REFURES, 1983-48 extent of about 100 a week, which should be pointed out that during the same CONTENTS would make 400 a month. In truth and period, 87,634 allens were deported from this country, thus reducing further the total 1. Displacement of Jewish population in n. fact. visas were issued at the rate ot only about 200 a month. Now as to number of immigrante actrued in the 10 Europe hipping space, or ships, Spanish and years under consideration. What happened to the 8.200,000 Jaws who Portuguese vessels are now calling regu- The official figures of the Immigration and in September 1999 lived in the countries now Naturalization Service reveal that In the dominsted by the Axis? Refugees, avacuees, arly at ports all along the Atlantic coast period between January 1, 1933, and June 30, and departees. Countries of immigration and there are many others. I went to 1943, the number of Jews who came in under which admitted refugees and evacuees the trouble of examining Lloyds Register national quotas totaled 166,843, The total Countries to which Jews have been deport of Ships and I also have before me an number of Jews admitted on emergency ylaas ed by the Name. excellent report of the World - Jewish was 43,089, but sume of these was Included 11. Jewish immigration into the United States Congress, entitled "Neutral Shipping in the 166,048, since they later remitered under the national quotam. These totals m- General immigration. quota and non- Facilities" by Avram A. Juditch, mem- per of the Yugoslav Jewish Representa- clude Jewish immigrants from all over the quota. Jowish immigration, number or world, some of whom were not refugees from refugees. Unfilled quotas. Enigretion from live Committee. I gather, therefrom, Hitler. the United States. Ratio of Jewish Immi- that aside from ships coming from grants to Jewish population. Argentina and to the United States and The restrictions on immigration imposed III. United States visa procedure in wartime joing from the United States to the by the State Department are a definite Argentine, and the same with Chile, I hindrance to the rescue program. In the past Application for Theat (Form BC). Consill- eration of applications by Government agen- lind that there were 25 passenger ships of year, only 5.9 percent of the immigrante per- cles. Criteria for admission of allens in various tonnages available, plying across mitted under the quota law were admitted. wartime. Preparation of application: Primi- the Atlantic between the United States This is due, in part to the elaborate "screen- ary committee. Advisory approval, period of and Spain, 16 Swedish ships, 11 Portu- ing" process established by the State Depart- ment. We agree that every pressution must validity. Review of application by Inter- ruese ships, and 12 Turkish ships. be taken in the intereste of security to pre- departmental visa review committee. Board Those ships could have carried Naou- vent the admission of enemy agents. but of appeals. Application of allens of enemy sands of refugees into the United States nationality. Suspended cares. Quota year. existing procedure la needimaly cumbrous. If they were otherwise admissible, 80 that In other countries refugees are admitted, in- IV. Comments on visa procedure when Mr. Long says there was no ship- terned, and released after complete Investi- Filing of application often delayed on NC- ping space, he does not know what he gation. A harsh and unjustifiable rule of the count of difficulty in obtaining Information is talking about or deliberately did not Visa Division weight very heavily against the from applicant abroad. Latest changes in deal with the truth, in either of which admission of persons with near relatives in BC form complicate procedure. "Hostage events It is a sad commentary on affairs Axts Europe. This serves to har admission to angle" handicaps approval. Occupational ex- many people in need of & haven. as conducted by Mr. Long as head of pertence interpreted " "useful to war ef- the Visa and Refugee Division of the fort" Applicants from Spain and Portugal State Department. That is not all. I XV have to account for the manner in which went to the trouble of examining Lloyds Mr. Long bas released the Leat of the man- they reached those countries. Rafugeee not date of the Intergovernmental Committee in "acute danger" denied visas. Internets in Register of Shipping with reference to now functioning in London, and declared camps cannot obtain visa unless they reach cargo ships. Mr. Juditch likewise pre- that according to this madale, the Com- consulate, but cannot be freed unless they sents interesting data on cargo ships. mittee TM given "plenary authority to do obtain visa. The ships that I spoke of before. 16 whatever they can within and without Ger- Swedish ships, the 25 Spanish ships, and many and the occupied territories." This AMERICAN JEWISH CONFERENCE - the 11 Portuguese ships, were passenger- statement has been widely Interpreted to MORE on JEWISH REQUESTS, 1930-1945 bearing vessels. There were several mean that the Committee La empowered to I. DESPLACEMENT OF THE Jawan POTULATION hundred cargo vessels that were plying deal with all phases of the problem of resette, IN SUROPE the Atlantic during the time in question, including direct negotiations with Germany owned by Argentina, Chile, Portugal, for the release of Jaws and other persecuted Since the advent of Hitler in 1989, and par- Spain, Sweden, Switzerland, and Tur- peoples. titularly since the outbreak of war in 1939, But Mr. Long's interpretation has now been the Jewish population in every European key-a veritable bridge of ships in the termed "absolutely Incorrect" by the head- country has been displaced from Its original registry of neutral countries, and those quarters of the Intergovernmental Com- habitation by voluntary emigration, evacus- Intended immigrants would have been mittee in London. according to cable dis- Non, or deportation. For purposes of our only too happy to sleep even on a board patches. Patrink Malln, American vice di- present analysis, all those who have escaped rector of the Intergovernment Committee, the Nami dominated and occupled countries, on a cargo vessel. Many cargo vessels denied that the Committee mandate can be are classified M refugees (Including STRC- carry passengers or can be made to do interpreted to mean, - Mr. Long said. that uses): all others are deportees. The latter EO. So that there could have been thou- the Intergovernmental Committee has been category embraces three who have been de- sands more of refugees brought into given "the authority to do whatever It can ported from one country to another (In Maxi this fair land of ours, even on cargo within and without Germany and the oc- Europe) or from one place to another with- ships. The Long attitude said "No." cupied territories.". Mr. Malin pointed our in the limits of the name country. It should The Long gates are down.* The Long further be noted that the cisasification of that the mandate visa questically door Is closed. "refuges" does not include the Fewlats Im- with respect to persons and not committee. migrants from eastern Europe or other coun- Remember this is the same Mr. Long In view of these contradictory Interpre- tries prior to the Name occupation of these who called the Italian conquest of Ethi- tations, wa urge Immediate clartination of countries. ppla, "the fruitable harvest of Mussolini the eliuation. Confusion and conflict of The following table gives the country of enterprise." opinion at this late date are inexcusable. origin of refugees and deportees: A406 CONGRESSIONAL RECORD-APPENDIX JANUARY-S TABLE I-Jeurtsh refugees and deportees, prior to the war. (The Agure 190,000 includes period for Germany and Austria val Th 1033-43, classified by category and country some 26,000 nonimmigrants who came in on per year, or a total of 164,220 for the 5% of origin¹ temporary visa, M visitors, etc.) period. The number of refugees who entered Pal- In 1943, the total quota Immigration - estine (190,000) is only part of the total the United States was 9,045, or 5.9 percess e Departees Jewish Immigration into that country during an admissible quote of 163,774. Even - Refuges the same period, which was about 800,000. ing all immigrants-quota and nonquota. Country (jodud- From Within Total Sweden should be added as & country of admitted to this country in 1943, the form Ing ETBC- one the limits refuge, as it is giving asylum now to some was only 23,725, which was the lowest in Dest) country of the to so- same 12,000 Jewish refugees from Denmark and ber since 1502. other country other parts of Europe. 4. Emigration from the United States In Portugal many Jewish refugees are in All countries MS,000 2,205,000 5,217,000 transit, leaving there some 600 to 000 at A During the same period (1933-34) 2018 2,291,000 legal allen residents of the United States MI time. Foland 200,000 2,000,000 Hungary has recently admitted several the country. Of these, 2,161 were In 2,534,000 thousand Jewish refugees who exceped from Thus, the total net immigration (quots If Unkn of Boviet Socialist Be- ponquota) to this country for the pas publics 1,200,000 Poland through the "underground." 1,200,000 years was 223,985, while the net Jewish Inc) Germany 285,000 160,000 445,000 TABLE III-Jensish deportees (Including refu- Austrie 20,000 120,000 gration (immigrante and nonimmigues 100,000 100,000 265,000 gees trapped in occupied territories), ce- was 206,684. Rumania 185,000 France 30,000 70,000 100,000 200,000 cording to country of deportation (Includ- Protoctorate 25,000 20,000 40,000 95,000 ing deportess within the Hmits of their own 5. Ratio of Jewlsh Immigrants to Jewish 60,000 25,000 00,000 population Slovakia 10,000 Lithusnia 10,000 20,000 40,000 country) Latvia 15,000 15,000 30,000 All countries: 2,840,000 The Jewish immigrants who entered & Belgium 25,000 50,000 75,000 United States in the past decade (200,MM) Holland 25,000 80,000 106,000 Poland 2,600,000 constituted only 4.1 percent of the Ing Yugoslavia 8,000 25,000 33,000 Greece 3,000 10,000 13,000 Occupied Soviet territory $ 60,000 population- in this country (estimated e Bulgsris 10,000 10,000 France 58,000 5,000,000) and about 25 percent of Other Europe- Belgium 30,000 Jewish population (8,250,000) that lived 20,000 5,000 35,000 Holland 35,000 1939 in the European countries of emigratin Other European countries 70,000 now dominated by the Axis. Compared was I From Jewish Refugor, by Kurt R. Gromman and other countries of immigration and retuin Arich Tartakower On manueript) to be published by This figure is indeterminate, ne it may this in the lowest ratio. England, for e the Institute of Jowish Affairs, American and World vary in tens of thousands. ample, having admitted 65,000. Jewish na Dowish Congres, cb. X, table L With the exception of Poland and the 00- goes, Increased its Jewish population by It appears from this table that 5,261,000 cupied parts of the U. 8. B. R., to which de- percent. Similarly, the 16,000 Jewish Jews. out of a total of 8,250,000 Jewish popu- portees from all countries were taken, the goes in Switzerland constitute 8.6 peromi lation in the same area in 1989, have been countries mentioned in this table harbored the local Jewish population: in Argests uprooted from their original homes. The refugees from central, eastern, and western 23,2 percent: Australia, 97.5 percent; Bod refugees who escaped Nazi dominated and Europe who were trapped by the Nami occu- Africa, 8.8 percent; Canada, 5.2 percent occupled European countries have found pation. The following table presents an their way to various parts of the world to n. JEWISH IMMIGRATION INTO THE UNITED of the annual quota for each country of countries of immigration overseas, to the STATES, 1933-42 gration, the number of quota Immigrants interior of U. 8. 8. R. and to neutral coun- mitted to the United States, and the DUE tries in Europe. 1. General immigration ber of registered applicants for visas, The following table gives the distribution The total number of alien immigrants en- TABLE IV.-General and Jewish quota of these refugees (and evacuees) in the vari- taring this country from June 30, 1933, to gration into the United States, June ous free countries: June 30, 1943 (10 years) was 476,930. or 1933-June 30, 1943 these, 293,882 were quota immigrants. The TABLE II.-Jewish refugees, 1933-43, classified total quota for the same period was 1,537,740. SELECTED COUNTRIES HOW UNDER AXIS DONOR by country of immigration (and asylum) This means that less than one-fifth of the TION All countries: 2,421,000 quota was actually admitted to this country. (Quota immigrants are classified according to U.S.S.R 1,800,000 country of birth.) It should be pointed out, United States 100,000 that of the total annual quota allotted to all 10-year Total Total Palestine Country of Will 120,000 counries, 58 percent is allocated to Great quota general, Jewish, 1900-0 1005-01 England 65,000 Britain, Northern Ireland, and the Irish Frée dia Switserland 16,000 State, and about 16 percent to Germany and Spain $12,000 Austria. Poland receives 4 percent; Italy, Argentina 50,000 8.7 percent; France and 8weden, 2.1 percent AD countries 1,67,76 202,882 165,756 a Breat! 25,000 each: the other countries, 1 percent or less Total Chille 14,000 each. countries 471,070 220,003 149,231 Bolivia 12,000 2. Jewish immigration Urugusy 7,000 The total number of Jewish immigrants Bolgium 12,040 2,486 1,471 Other Latin American Unigaria entering the United Blates during the same 1,000 616 countries 28,740 18,509 7,052 20,000 10-year period was 180,766. To this may be Dearig 1,000 500 China 25,000 added 43,089 nonimmigrante who were ad- Dennark 11,010 2,989 M South Africa 8,000 mitted on temporary viens. (Some of these Returnis 1,100 481 Australia 9,000 France nonimmigrante changed their status as Im- 50,860 7,402 2,005 Canada Germany 220,570 121,454) 8,000 migrants after reentering the country on per- Austria 16,180 Other countries 1,548 07,321 40,000 manent visal.) Out of this total of 208,045, Green 3,070 2,051 117 Tables II and III are compiled on the about 190,000 were refugees. (See previous Hungery 0,690 6,874 4,117 basis of data In Jewish Refuges, ch. X. section, table II and explanation.) Italy. 50,000 21,149 as Latria 2,300 1,170 Is la estimated that only some 2,300 Jewish .3. Unfilled quotes 3,860 1,817 1,006 refugees have remained in Spain, as of Jan. Unfilled quotas for all countries in the Lussmburg 1,000 200 12, 1944 (JTA News Jan. 18, 1944). Netherlands 51,430 4,50 1,480 part 10 years totaled /1,244,080. Unfilled Nurway 28,770 2,979 31 E The number of Jewish refugees in the quotas during the same period for 20 coun- Poland 05,240 $0,151 $1.70 XE U. B. 8. R. comprises 1,200,000 Soviet citizens tries now Axis dominated or occupied, totaled Bumania 4,770 3,310 2,719 of White Russia, the Ukraine, and parts of 361,567. 8,450 3,931 453 other previously occupied territories, and Other consitries, From June 1932 to June 1980, when emi- Jewish traml- 600,000 from eastern Poland and the Baltic gration from Germany and Austria WM still gration, 1,031. States which were occupied by the Red Army in 1909. Those refugers were svacuated by. possible on a large scale, the United States admitted from those countries only 78,000 , Secrei: Helenses of the Immigration and New the Boviet authorities into the interiors of quota immigrants (of which 50,000 were sation Service, D. B. Department of Justian, Astatic Russia. Jews), 1. e, less than half of the admissible mation supplied by the National Refuge Service) The number of refugess admitted to the Intended quots and nobquota allen Immignale United States (190,000) is calculated on the quota. The admissible quota for the wame country of birth). Registered applicants for YIM at the United basis of the total Jewish Immigration to this Sources: Jewish refuges: National Refu- consulates abroad. Information supplied by country less that which came from Canada, scoording to United States Consolar Service return Poland, Rumania, Lithuania, and Hungary ges Service: Interpreter releases, published by Common Council for American Unity. Source: Jewish Refugee, ch. X, table Regraded Unclassified 45 1944 CONGRESSIONAL RECORD-APPENDIX M07 fil. UNITED STATES VISA PROCEDURE ESP WAR B. Preparation of Application for Primary consular service-are hold in suspense in a TIME Commitse Rinte Department or 45 American consulties (a) Application for please Form BO unsell be Bled la six copies will the abroad. After the territories euro net the Alten applicants desiring YIDAA to the Visa Division of the State Department. After applications will Date to The renewed. it, United States-whether for permanent im- ascertaining the sponsor's dinancial ade- however, the applicant can reach an Ameri- migration, preference quota, temporary, or quacy, & copy of the form is negit so the Inves- can consul before the 0 months of validity transit-must have BO forms filed in their tigating agencies: The Immigration and Natu- expire, he may obtain bie visa. behalf with the Visa Division of the United relization Bervice, F. B. I., Military Intelll- 10. Annual Quote States Department in Washington, D. o. gence, Naval Intelligence, and the State De- Form BC, issued by the Visa Division (MC- partment. It usually takes from - to 6 weeks The annual quota for 5 given country ex- and revision, July 1, 1943). is 50 Inches in for the reports to come from these agencies. tends only for 1 fiscal your and may not be An examiner then prepares the material for carried over to a. succeeding year. If an length (four legal-aine sheets printed on both sides) and contains all questions pertinent the Interdepartmental Visa Committee, applicant who has received & VIAL having known Also M the Primary Committee. been assigned a quota number, to unable to to Information required by the State Depart- sail within the fiscal year of his quota aum- ment regarding the alien applicant. 4. Action by the Primary Committee ber, be forfeits his visa and bas to apply a (There are some categories of allens for The Primary Committee consista of one rep- the consul for a now CIDE. It should be noted whom no BC form may be required, such an resentative from each of the departmente that the quote number le assigned to the native-born citizens of Independent coun- mentioned in the preceding paragraph. If applicant upon the Issuance of the visa. tries of the Western Hemisphere, British the case La approved-1. advisory approval to native-born subjects, citizens of Canada or IV, COMMENTS or VISA PROCEDURE* granted-It in forwarded to the consul abroad Newfoundland, persons entitled to nonquota for action. If the consul-who has final decl- L.,Fuing of application status except enemy allens, etc.) ston in granting a visa-ta natisfied as to the Stuce the BC form must be filed with the Part B of Form BO is to be filled out by applicant's eligibility, be requeste a quots Visa Division in Washington (and not with the alien spplicant or by an American spon- number from the State Department in the consulate abroad), much precipus time sor who is most familiar with his personal Washington. The latter cables a. quota may be lost in obtaining the necessary Infor- history and background. Each applicant number. or senda is air mail. if one is available. mation from an alsen applicant who la over 18 years of age must fill out & separate 11 the consul disapproves. the case le referred abroad. Very often the American sponsor form (B). Part o is to be filled out by the back by him to the State Department for who files the application la not familiar will financial sponsor. Bach alien must have two further consideration the numerous details of the allen's life his- sponsors. If the sponsors, or the alien ap- 8. Period of Validity of Advisory Approval tory required to be filled out in form SC. plicant (If be happens to be to this coun- An advisory approval to valid for e months In some caset, due to communication dim- try). wish to appear for a hearing before the If the applicant did not obtain his Visa by culties, such information may never be Interdepartmental Visa Review Committee, they must file an application for such a. hear- that time, for whatever reason, the sponsor obtained. tng (Form IVRC-1) together with the BC has to apply for an extension, indicating his 2. Changes in Form BC (made July 1, 1943)* form. Witnesses (may be citizens or allens) continued Interest in Uie applicant and ability. When the BC form ww revised by the State who know the applicant's life history may to support him. Department on July 1, 1943, the following also appear for a hearing, upon filing a notice 8. Interdepartmental Visa Review Committee important changes were made, which dom- of appearance at the same time na the spon- This summittee, consisting of representa- plicate the procedure: scrs. tives of the same departments as those of the (a) The question (No. 15, part B) M to (b) Administrative procedure tn the Visa Primary Committee, reviews the Casos of the applicant's "places of previous residefica Division applicants rejected by the Primary Committee (city and country)" requires "giving approxi- 1. Consideration of Applications by Four It conducts hearings, at which the sponsors mate dates strice age of 14 years." In the Bodies Possible or/and other witnesses may appear. The former BO form only a 10-year period was Under the authority vested in the Secretary déclaion la made on the basis of the informa- requested. ston in the record and the testimony of the (b) The sponsor must now Indicate file of State by the President's proclamation of November 14. 1941. restricting entry Into and witness. If this committee disproves the occupation and his residence for the past 10 case, It goes automatically to the Board years instead of 8 years. The sponsor is departure from the United States of all per- sons, the Visa Division has get up a series of Appeals. (No appeal to the Board is required to give more specific information of steps by which applications of aliens are necessary.) in regard to his American citimenship and given careful consideration and review, to In- 7. President's Board of Appeals must answer questions (Nos. 25 to 28, part B) about his own political thinking and sure the interesta of the United States during The Board of Appeals consists of two mem- attachment to the United States Consti- this national emergency. bers appointed by the President, who are DOL tution. Applications may be considered by four supposed to represent any branch or agency J. Hostage angle Instances: First by . primary committee. of the Government. Their dectation la based Bection 7 of this application deals with next by an Interdepartmental visa review on the evidence of the record and witness "close relatives in countries other than the committee, then by the board of appeals, and submitted by the previous two committees. last by the Secretary of State, who has final United States." This section has proved to The board may ask these committees for addi- authority. be a serious handlesp in the consideration fional investigation and data. The approval of many cases because the Visa Division still 3. Criteria for Admission of Aliens in of the Board may be reversed by the Secretary takes into consideration the so-called hostage Wartime of State, who has Anal authority. If the clattre. This means, that the applications of application in denied by the Board of Appeals, Among the classes of aliens deemed preju- people who have relatives in any one of the it may be renewed by the same or different dicial to public interest, there is one group Nast-occupied countries are usually refused. sponsors after 6 months. The antire original of aliens having close relatives in enemy Quite frequently this is the only cause for procedure has to be started over again, MF if countries. It is considered that since the refusal. It were $ new case. relatives are kept as bostages by the enemy. the alsen immigrant might be forced to en- 8. Applications of Aliena of Enemy Nationality 4. Occupational experience page in activities in the United States of All applications for allens of enemy nation- Question No. 9 (part B) dealing with "ocad" America which might be detrimental to our ality. whether natives, citizens, subjects. or pational experience" is frequently Interpreted country. However, the regulations make a dentaens of enemy countries, must be consid- by the Visa Division M requiring such need- clear that this factor la to be considered ered by the Primary Committee, the Integde- pational experience as may be regarded "use- along with other evidence and should not be partmental Visa Review Committee and even ful to the war effort of the United States." cause for denial to enter, If-approved by these two bodies, they must Buch an interpretation 19, of course, not pro- Emphasts is now placed on the probability also be considered by the Board of Appeals. feased publicly, but numerous inquiries Blong of the alten being of benefit to our country, (Enemy countries are Germany, Italy," Japan, these lines load to the conclusion that this especially in defense work. Bulgaria, Hungary, and Rumania.) le & criterion frequently employed in deter- Close relatives-parente, husband, wife, mining the fitness of an applicant for admis- 9. Buspended Cases children-in this country are also considered ston into the country., It gerves to disqualify Visa applications of allens now realding in as factors favorable for admission of allens, many applicants who are either professionals since the reunion of families is regarded 5.0 enemy territory-where there is DO American or have been merthants to Europe. beneficial to the morate of the American elll- 5. Rejugees in Spain and Portupal Bena, or residents, involved. Italy, having been recognized by the There vas . time when applications sub- United States of America, Oreal Britain, and Soviet Russia, M A coballigerent, le DO longer mitted on behalf of people in Spain and a According to Interpreter Releases, pub- Portugal were given preferred consideration. lished by Cummon Council for American regarded M an anamy allen for purposes of selective service in this country. However, This policy has changed completely in the Unity, volume XX, No. 40, October 29, 1043. A Summary of Visa Procedure in Wartime, by the State Department has not yet issued any statement with regard to Immigration from Source: American Jewish Congress. Cecilin Rasovsky Davidson. Italy, Bouroe: National Refuges Service. past a months. Relatives who now appear at hearings before the Interdepartmental Visa Review Committee are now questioned in detail as to "how the applicants got to Spain," although members of the committee know what is common knowledge to every- body-that those people succeeded in getting into Spain from France by escaping over the Pyrenees. In this connection another ques- tion put by the committee la with regard to the applicant's stay in Spain. Again is is common knowledge that people who escape into Spatn are arrested and interned at Camp Miranda or put into prisons. Many of them are released afterward as the result of per- sistent efforts on the part of friendly gov- ernments and private relief organizations. Nevertheless, the committee Instats on ask- ing the sponsors details concerning the re- lease of the applicant. Inevitably most of these questions must go unanswered, since the people who appear at the hearings usually know nothing or very little about the efforts in Spain. The failure, however, to answer these questions produces an unfavorable im- pression on the committee, resulting very often in a refusal of the application. 6. Refugees not in "acute danger" Two other considerations militate against the granting of visas. The first is & criterion entitled "Not Being in Acute Danger." This applies to people in such countries 55 Spain, Portugal, Tangler, Jamaica, Cuba, and other Latin-American countries. It is. of course, true that such people may not be in danger of extermination. Many of them, however, have relatives in the United States whom they naturally wish to join, or generally are anxious to begin life anew in America as contrasted with the rather hopeless existence that most of them lead in places like Jamaica, Tangier, etc. In most instances these people have no possibility of earning a living in these places, since many of them are detained in camps. Furthermore, if these refugees could leave for the United States, they would make room in these places for others to come in, yet their applications for visas are in most cases refused. 7. Interness cannot reach consulates The second consideration is that the De- partment of State refuses to consider visa ap- plications for refugees who are Interned in camps in Mauritius, Cyprus, etc., which are under British rule. The attitude of the Visa Division is that It cannot act on these appli- cations so long as these people are not re- leased unconditionally from their internment 80 that they may appear at the consiblates in person. On the other hand, the British Government will not release these people unless they show valid visas for another country. The result is a viclous circle, It should be noted that the Jewish refugees In Mauritius were deported there to 1940, after they had tried to enter Palestine without cer- tificates. Many of them have families in the United States who are anxious to bring them to this country. To date their applications have not been acted upon for the reasons Indiested. 47 February 1, 1944 3:30 p.m. TAX BILL Present: Mr. Bell Mr. Paul Mr. Surrey Mr. Gaston Mr. Smith Mr. Sullivan Mr. White Mrs. Klotz MR. PAUL: The heading of the discussion is Incentive Taxation. H.M.JR: The forty-five in your room - this has nothing to do with this meeting, but it is very annoy- ing - George McAneny is an old friend of mine from New York. MR. PAUL: Did he come in to see you? I have got a report on my desk. I heard he was coming. Sammy Klaus has been working on it. H.M.JR: Well, the form in which he did it - "Here- by under Section 101, retroactive for three years" - is this America or some other place? Don't we even get a chance to be told why? I thought it was the most high-handed thing I ever heard of. He says most of the money comes from the Rosenwald Foundation. No excuse - no reason. MR. PAUL: I have got the report why they did it. I didn't know how they did it. Regraded Unclassified 48 - 2 - H.M.JR: I told Graves if this is the way it goes out, it has to stop. This idea - "Hereby it is revoked" - edict from Hitler. MR. PAUL: Well, that is true of a great many. MR. SULLIVAN: I wish I had known about it. Have you (Paul) been talking about this? MR. PAUL: No, I just heard it two or three days ago. Sammy Klaus has been working on it. He told me McAneny was coming in to see you. I told him to give me a report. H.M.JR: McAneny didn't tell me what it was. MR. PAUL: It is in connection with some of their propaganda activities - German. H.M.JR: It is no way, John, to send out a notice. MR. SULLIVAN: You can't argue with me about that. H.M.JR: You inquire about it, will you? MR. SULLIVAN: Certainly. H.M.JR: Let's say it is a good organization; let's say it is all right. Well, then, you know-- MR. SULLIVAN: Even if it is a bad organization, that is not the way the notice should come out. H.M.JR: Can you make it retroactive for three years? MR. PAUL: Make it retroactive for all the years for which they weren't truly interpreted. H.M.JR: It smells like Sammy Klaus. He is one of the most high-handed people we have around here. MR. PAUL: Who is? Regraded Unclassified 49 - 3 - H.M.JR: Klaus. MR. PAUL: I agree with you. Afraid to let him loose. MR. SULLIVAN: Have you been able to keep him locked up? MR. PAUL: Awfully hard to keep him locked up. H.M.JR: Now, Mr. Paul, will you tell me the good and the bad? We will start with renegotiation, and then the rest of the tax bill, because this will be my last chance. I hope to make up my mind and give advice to you people whether I recommend to the Presi- dent whether he sign or veto it. One thing, please, for the record. Mr. Byrnes called me up this morning and said he had not been able to contact LaFollette yesterday. He wanted to let me know that. MR. PAUL: Something strange happened. There is & rumor up there on the Hill that he did. H.M.JR: Why should he call me up this morning to say, "I just don't want you to think I was rude not to call you back, but I was not able to reach LaFollette." I can't see why he should do that. MR. PAUL: I don't, either. H.M.JR: Because being successful, I should think he would want it known he had contacted LaFollette. Byrnes doesn't usually push his bushel under a light! MR. PAUL: Under a candle, isn't it? Let me say first that the total revenue increase under the bill over present law is two billion one hun- dred ninety-four million, for a full year of operation. Regraded Unclassified 50 - 4 - That is the total increase from which certain items have to be deducted. That is increased taxes over present law, imposed after taking account of a number of decreases, but not after taking account of Social Security, and not taking account of certain relief provisions which are not in that total. I will come to them in a minute. You asked for the renegotiation changes first. I think we can dispose of that very quickly by saying that there is very little left in the bill on the renegotia- tion front that is objectionable. There was a very decided reversal of all trends yesterday afternoon. There are two or three things that are decidedly objectionable on that front, the principal among them is the cut-off date under which the renegotiation ex- pires December 31, 1944, with the power in the Presi- dent to extend for six months. That is very objection- able and the President has discussed it specifically with Byrnes. Byrnes told me he objects to it. It is bad according to Patterson, among other things, for the reason that Patterson says that beginning a few months before the final date of expiration, contractors will stall so as to get their contracts in after the period so they won't be renegotiable. It is objectionable from one standpoint because it is simply impossible to defend, as long as the war goes on, at least; the profit that is excessive on one date is excessive on another date. H.M.JR: But it reads so that if I sign a contract with the Government on December 31 of 1944 - can they renegotiate that contract? MR. PAUL: Yes, but not if it is on January 2. Of course, the President has the six months power to extend. H.M.JR: But at one time it was only renegotiable for business done through the calendar year. Regraded Unclassified 51 - 5 - MR. GASTON: This is business done and not contract signed. MR. PAUL: They finally fixed that. MR. SURREY: No, it is the profits earned prior to the cut-off date. MR. GASTON: Earned prior to the cut-off date. No relation to signing of contract, then. H.M.JR: Let me ask my question again. Paul answered one way and you another. MR. GASTON: That makes Patterson's objection have more reason, the way Stanley states it. H.M.JR: If I sign a contract on December 31, 1944, for business which will be done in 1945-- MR. PAUL: Nothing earned under that contract. H.M.JR: It is only stuff earned up to the cut-off date, is that right, unless the President extends it? MR. SURREY: That is right. MR. PAUL: He can extend it for only six months. H.M.JR: That isn't 80 good. MR. GASTON: The real substantial objection is what Patterson said, that they will stall work. MR. PAUL: That is the worst thing left in renego- tiation. Now, the worst from the standpoint of taxes - oh, one more thing about renegotiation, which is not so objectionable as it was for awhile: Contractors may have a hearing before the Tax Court. We opposed that and lost in the House and won in the Senate. The reason Regraded Unclassified 52 - 6 - I say it is not so important now is because they did not put in the provision permitting a review of all the closed cases of which there are about eight thousand. They just make that-- H.M.JR: That is finished. They can't reopen those. MR. PAUL: Can't reopen those. That is one of the things that happened yesterday. H.M.JR: Does this thing apply before or after taxes? MR. PAUL: They changed that. It is now the way we wanted it; it applies after taxes. MR. BELL: It goes to the Tax Court instead of Court of Claims. MR. PAUL: It goes before taxes; after taxes is what we objected to. We didn't want to make it a super excess profits tax. H.M.JR: Which is it now, before or after? MR. PAUL: You get renegotiated before taxes, and then the tax follows. MR. BELL: What is left. MR. PAUL: Yes. MR. BELL: Did we object to its going through the Tax Court at all? MR. PAUL: Our objection was based on the House bill which gave the right-- MR. BELL: To reopen? MR. PAUL: Yes. Regraded Unclassified 53 - 7 - MR. GASTON: Now only renegotiation cases can go to the Tax Court if the contractor wants to take it there? MR. PAUL: But not the cases which have been volun- tarily closed. MR. GASTON: No, but only cases they undertake to renegotiate a man and he doesn't like it - he can go to the Tax Court. And he wouldn't like it in any case - he will go to the Tax Court. H.M.JR: But you do your renegotiation first and when that is settled you pay your taxes on what is left. MR. PAUL: Yes. You may not do it first in point of time, but the impact is first of renegotiation. You reduce the profits first by renegotiation, then you im- pose a tax on the reduced amount. That was one of the things they changed yesterday. They had 8. provision that we must in renegotiating take into consideration estimated tax liabilities. H.M.JR: But none of our people were in the room so we don't really know what happened? MR. PAUL: You mean politically? We know the results but we don't know what moved them. MR. SURREY: Nobody was in the room. MR. PAUL: Not even the clerk. MR. SULLIVAN: Now, the practical result of this, Randolph, is that the renegotiation boards can't be so tough. The contractor will always say, "Well, if in- stead of taking back two hundred thousand, you only take back one hundred and fifty, I will settle; otherwise, I will go to the Tax Court. MR. GASTON: Court of Claims, isn't it? Regraded Unclassified 54 - 8 - MR. PAUL: Yes, back to the Tax Court. That is right, John. MR. SULLIVAN: Of course, your next three or four months will show how dangerous that is. MR. PAUL: Yes, there isn't any excuse for it. However, they did wipe out a number of objectionable amendments such as the exemption of standard 00 mmercial articles, such as the exemption which persisted up right to the end for a certain machine tool people. They put in some office-supply exemption which is perfectly in- noxious, Patterson says. Now, on the tax front, a great many of the most objectionable provisions were eliminated at the last moment, particularly a hand-out to the railroads, which were going to be permitted to deduct losses on securities they bought back before 1920, and which have now gone way down in value. They were going to charge those losses, in effect, to the Government - ninety-five percent. That was 8 lot of money. It was five hundred million to seven hundred million dollars loss of revenue. They cut out another provision to which we had violent objection, that losses sustained in the period from '38 to '42 should be ordinary losses. That meant a lot of money. That was what Ballantine was backing. They cut out a provision which gave special depletion treatment, increasing the income on which the percentage depletion was computed to mining companies where they were integrated like U.S. Steel. They cut that out by limit- ing the relief to gold and quicksilver. However, there remain a number of provisions in the bill for which there is no excuse. One of the principal ones from the standpoint of revenue is a provision per- mitting companies reorganized in insolvency, bankruptcy proceedings, to have a basis - to have invested capital and the depreciation basis of the old company which failed, although that capital was created by stockholder Regraded Unclassified 55 - 9 - who were wiped out in the bankruptcy. And the company goes to the bondholders, and the bondholders, in many cases, just bought up the bonds on the speculative bond market. They had that provision until the very end, going back to 1940. At the end they got scared and made it begin in 1943, after December 31, 1942. The total loss on that provision is eighty-four million a year - fifty million for back years. They have a provision permitting people who cut timber in an ordinary business, year by year, to have a capital gain rate. That costs us about twenty-five million. That is Lovell Parker's provision and it is a wonderful thing for Mr. Weyerhauser. MR. GASTON: They depreciate the capital? MR. PAUL: Treat it as a sale of capital. It is growing timber and annual operation. MR. GASTON: Like crops? MR. PAUL: That is right. They have a small provi- sion with respect to the airlines. (The Secretary held a telephone conversation with Mr. Harold Graves, as follows:) Regraded Unclassified 56 February 1, 1944 3:45 p.m. Operator: There you are. HMJr: Hello. Harold Graves: I'm calling back about this Carl Schurz thing. HMJr: Yeah. G: I find that this peremptory letter HMJr: Yeah. G: was sent out to that organization on the recommendation of Mr. Klaus. HMJr: Who's Klaus? G: Sam Klaus. HMJr: Ain't heard of him. G: (Laughs) He's an old friend of ours. HMJr: Oh. G: And approved by Phil Wenchel HMJr: Yeah. G: and with the knowledge, at least, of Mr. Paul. This -- this outfit apparently is caught in some Pro-Nazi activity which Mr. Klaus -- I just talked with him HMJr: Yeah. G: says was thoroughly established by investigation. HMJr: Yeah. G: And that accounts for the peremptory tone of this particular letter. HMJr: Yeah. Regraded Unclassified 57 - 2 - G: It is not our custom at all to send that kind of a letter in a case of this sort. HMJr: Well, I still say that they are entitled to a hearing under the American system. G: Well, they were given a hearing. HMJr: They were? G: Yeah, I think -- I think maybe we ought to get from Klaus a report of just what did happen in this case. HMJr: Well, if you can get one from Klaus that I can understand. G: All right. Suppose I try. HMJr: Yeah. G: In the meantime I, of course, I'm going to be very careful of anything I say to Mr. McAneny. HMJr: Yeah. G: Whom I have not yet seen but who is waiting now to see me. HMJr: Right. G: But I thought that I had better tell you why it was. HMJr: All right. G: And that we acted that way in this particular case before I see this fellow. HMJr: Have you looked at other revocations under Section 101? G: No, I haven't. I have just this one in front of me, but I have the statement from our people that this is not our customary operation that We always do give. HMJr: Well, you might take a look at it yourself. G: Yes, sir, I will. Regraded Unclassified 58 - 3 - HMJr: But talking for McAneny -- I mean, I've known him all my life. G: Yes. HMJr: And I'd be the most surprised person in the world if he had anything to do with any. Pro-Nazi proclivities. G: Yeah, he -- maybe he doesn't have any knowledge of the particular things that this client has evidently been a-doing. HMJr: Have you had a look at it? G: No, I haven't -- I have sent for the file. I haven't got it yet. I thought I'd like to talk with you before I talk with Mr. McAneny. HMJr: Oh, yeah. But you're going to see him now? G: Yeah, I'm going to see him now. HMJr: Okay. G: Yes, sir. HMJr: Thank you. G: You're welcome. Regraded Unclassified 59 - 10 - MR.GASTON: Is this George McAneny? H.M.JR: Yes. He used to be under Mitchell. He was Comptroller of something - that young crowd that went in in those days. It was an excellent crowd. MR. PAUL: I think we ought to hear Sammy on this, before this is condemned. I did not know about it until after the event, but he has been working under Wenchel and he may have very good reasons. He may have given a full hearing. I have & report on my desk now. H.M.JR: Supposing you and John have a look at it. MR. PAUL: All right. They have & provision which doesn't mean much in revenue loss but is thoroughly objectionable in principle, giving certain favored treatment to the airlines. H.M.JR: In or out - giving the airlines treatment? MR. PAUL: It is in. H.M.JR: It gives them special treatment? MR. PAUL: Yes, gives a company like Eastern Airlines a million dollars relief - American Airlines a considerable relief. They have a provision for which there is no excuse whatever, strongly pressed by Disney, giving special excess profits tax relief to the owners of gas pipelines. It is all put in there, giving the whole industry relief, because 8. couple of pipelines in Oklahoma are having tough financing problems. Now, those are examples; those are some of the worst provisions in principle. However, the greatest loss in receipts is caused by the elimination of the Social Security automatic rate, keeping the one percent instead of two percent as it was supposed to go, beginning January 1. That costs a billion one hundred and twenty million. Regraded Unclassified 60 - 11 - There are two hundred million dollars of objection- able relief provisions. H.M.JR: How much? MR. PAUL: Two hundred million, plus the Social Security. That means there are some relief provisions which we recom- mended that I am not counting. So if you add the Social Security and the objectionable relief provisions, you have about one billion three hundred and fifty million to apply against your two billion one hundred and ninety-four mil- lion. So we haven't very much of a relief bill here. Per- haps the greatest objection isn't in terms of money, however. I think Stanley will agree with the statement that never before have the special interests, special pressure groups, had such influence and almost put over not only two hundred million dollars of relief, but a billion dollars or more of relief. Some of the big ones just missed in conference at the last minute. MR. SULLIVAN: What was the loss from the relief pro- visions we recommended, Randolph? MR. PAUL: Very small, it would be, for the recommended or agreed to. For instance, we recommended an increase in the specific exemption, five thousand to ten thousand dollars, the excess profits tax. That was to benefit small companies. That cost one hundred and twenty-nine million. The Victory Tax provision cost sixty-one. We didn't object to the second windfall elimination which cost about three million - no, that is not three - that reduced calendar year '43 liabili- ties by two hundred million. This liability was payable in four annual installments, 80 it would have extended over four years. All we did was tell them if they were going to do it, for heaven's sake do it now before we got B. lot of the work and got the returns cluttered up with it. MR. SULLIVAN: I think it has a bearing on the deci- sion the Secretary has to make. If we recommended or agreed to relief provisions that lose as much as the re- lief provisions we objected to, exclusive of Social Security, I think that puts us in a rather different position on recommending the veto. Regraded Unclassified 61 - 12 - MR. PAUL: I don't think so, John. For instance, this specific exemption provision was agreed to by the Joint Staff. There was no contest particularly on it. It had been passed last year by one of the Houses. It wasn't even controversial. MR. SULLIVAN: No, but I am worrying about their argument, saying, "Would you object to two hundred million of revenue you lost on relief provisions that the Treasury was opposed to, but there is another two hundred million." MR. PAUL: I don't think you can approach it quanti- tatively that way. MR. GASTON: The answer has to be that one is equitable and one inequitable. MR. PAUL: I come to this conclusion. I have a little memorandum here for you, but I come to this con- clusion in my own mind, that the bill should be signed, but that it should not be signed--I stated that incorrectly. The bill should not be vetoed, but whether it is not signed or signed, you can take either course, because we have plenty of time. We won't lose any excise by not signing it. H.M.JR: Why not? MR. PAUL: Because as long as the bill becomes a law ten days before March 1, we won't lose any excises. The ten day provision is in it. The bill will undoubtedly be passed and on the President's desk in order to give ten days before that ten days. So the President will have the option of not signing, or signing, if he doesn't want to veto. But I think he ought to give some sort of a message with that, not that I think it will do any immediate good in the sense of making them go to work on a revenue bill, but I think he ought to keep his record straight. I think it is the right thing to do, because the bill doesn't meet any of the problems of revenue or inflation, and because, instead of doing that, it passes Regraded Unclassified 62 - 13 - the tax burden on from the corporations of today to the returning soldiers of tomorrow. On social security grounds alone, I think the President has got to say something. They are doing all they can to gut social security, and I think on this other ground of special pressure groups, right in line with what the President said in his State of the Union Message and the Budget Message, that you have got to register some dissent from the bill, whether he signs it or allows it to become a law without his signature. He could mention, of course, this renegotiation cutoff. MR. GASTON: He could say in his message-- MR. PAUL: Now, the argument against it is, will a statement of any kind by the President adversely affect Treasury relationships for purposes of the coming simpli- fication bill, if any--technical or simplification bill. I don't believe it will. I can't help but think that where we got the most on this bill are the places where we fought the hardest. But there is plenty of room for a difference of opinion there. That is about the picture. MR. GASTON: The President could well say in his message that he proposes to extend the cutoff date, couldn't he? That would give them as long notice as possible that they can't stall and make extra profits. MR. PAUL: I think that would be a mistake, Herb, for him to assume the absence of competitive conditions a year hence. I think he would have to make that finding of fact at that time. H.M.JR: They would immediately say, "Well, he is doing that so he can run for a fourth term and say the war is going to last." MR. PAUL: It would be a pre-judging of the economic conditions. MR. SULLIVAN: There will be plenty of time to stop the stalling, Herb, if he does it around the tenth of November. Regraded Unclassified 63 - 14 - H.M.JR: I think it would be bad. MR. GASTON: He doesn't have to prophesy the end of the war. H.M.JR: Well, let me just go around the room now. MR. BELL: Well, I didn't get it when Paul went over the in's and out's, the important items, but I would like to see the bill approved by the President if there aren't too many objectionable things in there. H.M.JR: You mean signed? MR. BELL: Yes, signed. I can't quite weigh this contract thing, just how important that is from the stand- point of the War Department at this time. MR. PAUL: Well, they objected very much to it; so did the President, as a matter of fact. But when you say "sign," Dan, you have only answered one question. You have answered the question as to whether you think it ought to be signed. MR. BELL: Or vetoed. MR. PAUL: Do you think there ought to be a statement with the signature? MR. BELL: I wouldn't mind that. I should think maybe there might be a statement with it, but I think the President ought to approve it, if it is going to become a law. MR. PAUL: That would have the virtue of getting it moving, getting everything moving faster. MR. WHITE: I think the bill ought to be vetoed by the President. I think that is what the President is for, is to veto bad legislation. I think that is bad legislation, and it will put Congress on the spot. I think a veto message would obtain far more publicity than a message accompanying approval, and I think it would be popular, Regraded Unclassified 64 - 15 - except in those groups with whom he is very unpopular anyhow. I think it might well bring a better revenue bill. If it didn't, it would certainly serve to bring many of the Congressmen and Senators in disfavor, which is in itself 8. helpful objective. I am in favor of having the President veto it. I can't see what dangers to the war effort come from that, aside from the very unfortunate loss of current revenue until such time as they pass the bill. These bad features that are once incorporated, you know, stick. It is almost impossible to get them out. It is not a question of just legislating for one year. Certainly, the prevention of the accumulation of additional revenue from social security could never be better justified than it is at this time or more desirable than it is at this time. I think there are enough bad features in the bill, and that the absence of social security and the bad features in the renegotiation, plus the fact that the whole bill is bad in that it yields a smaller amount of revenue, in my mind, justifies the positive veto with a very strong statement. MR. PAUL: I have a draft of a strong statement here. H.M.JR: For what? MR. PAUL: We have been working two or three days. H.M.JR: Together? MR. PAUL: Either with a veto or with a non-signature or with a signature. MR. SULLIVAN: I am opposed to a veto. I think that the sins of that bill are the sins of omission, rather than commission. Whether or not he signs it--I am not entirely sure, but I think I would be for his signing it. But I see very little that as a practical matter we can gain from vetoing. MR. SURREY: I think I would be in favor of his signing it. In other words, if he is not going to veto Regraded Unclassified 65 - 16 - I think he could sign it. But on renegotiation, I don't think there are grounds to veto. H.M.JR: You don't think he should veto? MR. SURREY: I don't think he should, unless he feels strongly enough about the social security. He doesn't have grounds to veto it on renegotiation. MR. BELL: How about the relief provisions? Are they 80 objectionable? MR. SURREY: Well, here is the advantage there, whether it carries to the extent of a veto message or merely a strong message accompanying his signature, the whole caliber of tax legislation has been steadily drop- ping. It became, with respect to the committees, pretty much of a log-rolling process, and amendments are going in for companies and for industries solely because they want to favor each other. The tone is lower, and lower, and lower, and the Treasury is the only one that calls attention to it. Well, you can't win every time on these matters. No one else is helping us on the thing, and the President should do something to call attention to that, because it is becoming very disgraceful. MR. WHITE: This statement of yours (Paul's) is very good. With some little changes it would be very salutary. MR. SMITH: I don't think you can overlook the fact that this is 8. political year and anything he does is going to be made political capital of. I think if he vetoes the bill, the obvious answer that the opposition can sell very widely is that you went after the ten bil- lion dollars and they wouldn't give it to you, so you don't want anything. All this business about our needing money to finance the war just goes down the drain, I mean, the whole reason for your wanting money now. I think it can be made to look as though it does. I don't think he should veto it, because it would create a lot of excitement and make him look more dic- tatorial. I don't think he should sign it, because if Regraded Unclassified 66 - 17 - he signs it, then any message that goes along with it is sheer kibitzing. I should think he would let it become a law and have a humdinger of & speech built around the "gimme" boys. I think he can make political capital of it and be right at the same time. If he doesn't the other side would. MR. PAUL: I would like to add a footnote to what I said. If I lean in my doubt either way, I lean toward Harry's view, that it ought to be vetoed. That is what I think is the right thing to do, far apart from all the practical expedient arguments. H.M.JR: Last but not least, Herbert. MR. GASTON: Last and least. I think whatever the President does, he should not take the course of letting it become a law without signature. I think that is a feeble, pointless thing to do. He should either sign or veto it. I am in favor of a veto. MR. PAUL: If you have time, I would like to read a draft of the message here. It gives a reason. It gives better than one can do offhand, the reasons, what is wrong with the bill. MR. BELL: Let me ask you this before you do that: Could the President give out this stinging statement and say, "Now, I am not going to sign this bill; it is going to lay here, and Congress has the opportunity of recalling it"? Could that be done? MR. GASTON: No. MR. BELL: Has that ever been done? MR. SMITH: And he asks them to get busy? MR. PAUL: They will not do that. I would like to get this before you if you have time. Of course, this is & very serious matter, and we have worked 8 couple of days. I am not speaking for Regraded Unclassified 67 - 18 - Rough droft the tone of this, but for the context. (Reading of only. not draft of message for the President:) "I am returning furnished the Revenue Bill of 1944 to the Congress without my being signature. I am aware that no previous tax bill in modern times has been vetoed. But this bill is so tragically unrealistic as a wartime measure that I can take no other course. "A realistic bill would have provided more than $10 billion in added revenue. This bill offers less than $ billion. A realistic bill would have plugged existing tax loopholes. This bill opens new ones. A realistic bill would have simplified our tax laws. This bill complicates them. "I cannot reconcile its feeble tax increases with the gigantic military offensives that lie directly ahead. I find in the bill no real support for our program to stabilize the cost of living. I find in it no assurance to our fighting men and women that wewill tax ourselves to the hilt now instead of confronting them with the costs of the war upon their return to civilian life. "This bill is 8 vote of no confidence in the American people. I am sure that they are willing, able, even anxious to bear the burdens which this bill refuses to impose. They recognize taxes as an immediate and direct instrument for bringing their fighting sons and daughters back from the battlefronts more speedily. "Incredible as it seems, this bill gives more emphasis to tax relief than to tax revenue. It makes unpardonable tax concessions to self-seeking special-interest groups. It cancels $1.4 billion of payroll tax increases already scheduled by law. "It was generally agreed, and Chairman Doughton of the Committee on Ways and Means announced, that passage of a new revenue measure was not to be delayed by con- sideration of relief provisions and technical amendments. But selfish pleas for tax concessions prevailed, and the agreement was ignored. As the revenue program was presented to the Congressional committees, it was dedicated squarely Regraded Unclassified 68 - 19 - and solely to the welfare of the American citizen. As it comes to my desk in the form of H. R. 3687, it is bulging with special privilege. The general welfare of the American citizen has been forgotten in the scramble to grant favors to the special interests. "The mining interests are granted outrageously excessive allowances under the odious percentage depletion provisions. The lumber interests are granted the right to treat income from timber cutting and selling as capital gains taxable at 25 percent but are permitted to deduct losses from the same operations at the regular rate of 40 percent. Speculators in securities of bankrupt com- panies are unjustly enriched by provisions inflating the capital values of reorganized corporations for tax purposes. Commercial air lines are granted an unwarranted enlargement of the tax subsidy on their air mail contracts." MR. BELL: After we have kept them for twenty years. MR. PAUL: "A considerable part of the war profits of the favored groups will be insulated from war taxes by these concessions. million dollars of taxes will be lost annually. In addition, there will be a cumulative loss of more than $ million because many of the reliefs are granted retroactively. "It is pertinent to ask who will bear the burdens of which profiteering corporations are being relieved. Insofar as the loss is not made up by other war taxes, the burdens will be shifted to the shoulders of our return- ing service men and women. Insofar as this bill does increase taxes, it relies chiefly on excises bearing heavily on the lower income groups. "The Revenue Bill of 1944 fails the American taxpayer in other respects. He has been promised almost unanimously that tax laws will be drastically simplified. This bill in no sense lives up to that promise. It refuses to take the most obvious step toward simplifying taxes for the masses of taxpayers. That step would be to absorb the clumsy Victory tax into the regular income tax. But Regraded Unclassified 69 - 20 - for fear of dropping from the tax rolls those taxpayers who are at the bottom of the income scale, it retains the Victory tax as a separate tax. I cannot reconcile this unwillingness to forego a modest sum from our poorest taxpayers with the ready response to pressures of special-interest groups. "In view of our pressing revenue needs, it is un- thinkable that tax increases already provided by law should be set aside. Yet, in freezing social security payroll rates the bill before me would do precisely this. It would undermine the soundness of the social security system. It would wipe out $1.4 billion annually of expected payroll tax revenues. In other words, a veto of this bill, if sustained, will provide almost as much revenue as its enactment.' H.M.JR: I think it is an excellent statement. MR. PAUL: There are some things left out. MR. WHITE: The brevity of it is in its favor. H.M.JR: If I may say what I think, it is this: I do not think that the President should veto the bill. I wouldn't want to advise him whether he should let it become a law through not signing it or through signing it. I think that is a decision which he can make himself. But, before I go away, I would like that--you boys could leave it here, and I would be glad to say, "Mr. President, we feel here that you should let this bill become a law. See? That doesn't say how, you see. I would like to leave that open. But in doing so, we would like to offer some suggestions. "We have the following statement for you to make,' MR. PAUL: I would like to review this just a little bit. H.M.JR: Sure. I would like to have it circulated among this group. Regraded Unclassified 70 - 21 - MR. GASTON: From that point of view; if he is going to allow the bill to become law, what he has there is 8 justification for a veto. MR. PAUL: That is all right. We started to do it. H.M.JR: I used the words, "Let the bill become 8 law," so that leaves it open. I don't want to say whether he should sign it or leave it. MR. WHITE: You can't issue that statement and let it become a law. MR. SULLIVAN: You may have to have two different drafts, depending on which way he permits it to become 8 law. MR. PAUL: There is no use in making a statement unless you make a strong one. MR. WHITE: If you make a strong one like that, he is not justified in letting it become a law H.M.JR: Other than the first paragraph, I don't see where it has to be changed. MR. PAUL: There are changes. For instance, this doesn't mention some of the things it didn't do. H.M.JR: Anyway, if you would make that the first order of business, would you please, getting this in shape? MR. PAUL: Do you want it by tomorrow? H.M.JR: I don't know. I can't tell. MR. PAUL: We had better have something by tomorrow. H.M.JR: Yes, I would like to have it by tomorrow, but I can t guarantee that I won't be sitting here Friday. I am waiting for the President to make up his mind who will be director of this refugee committee. Regraded Unclassified 71 - 22 - MR. PAUL: I will have something tomorrow, and approach it further, if necessary. H.M.JR: But I would like to have it circulated among this group. MR. PAUL: I just got this this morning. H.M.JR: I understand. Let Roy in on it, too. MR. PAUL: Roy has been working on it, Roy, Heller, and myself. H.M.JR: It is an excellent statement. MR. SULLIVAN: I have one question, Mr. Secretary. We have to get the estimated declarations. They have to start printing those right away. We propose to grant everybody an extension until April 15 to file their estimated declaration and pay their first quarterly installment. We think we will be very lucky if they are printed and distributed, the fifty million copies we are getting out, by April 1. We are confident that we can't have them by March 15, but before it goes, I wanted you to know that the quarterly payments will be extended from March 15 to April 15. MR. PAUL: I told Bell about that some time ago. H.M.JR: I would allow myself enough time. I would rather go to May 1, if necessary. MR. SULLIVAN: The difficulty on that is, if we go to April 15, they will only have two months in which to save up for the second quarterly payment. H.M.JR: If you can do it April 15, fine. MR. SULLIVAN: We think we can. MR. BELL: You have just as much time as if you had started on January 1. MR. PAUL: Yes, just about. Regraded Unclassified 72 February 1, 1944. Memorandum TO: Secretary Morgenthau FROM: Mr. Gaston In & speech at Arthurdale, West Virginia, on May 27, 1938, the President took occasion to announce that he would neither sign nor veto the pending tax bill, the Revenue Act of 1938, but that instead he would take a course novel for him and would allow the bill to become law without his approval. The ten day period allowed the President for approval or disapproval of the Act expired at midnight that night. The President explained that he was taking this course because the bill contai ned desirable features that ought to become law, but contained other features wholly undesirable to which he wished to call the people's attention by this course of action. The features of the bill which he par- ticularly criticized were: (1) Reduction of the undistributed profits tax to 2-1/2 per cent; (2) Taxation of long term capital gains at the flat rate of 15 per cent. With respect to the latter feature he said: "Some people who have favored this abandonment of principle have justified their position on the ground that one has to abandon principles once in 8. while when there is an emergency and that the abandonment of this particular principle will encourage many rich men to take 8. risk with their capital and invest it in new enterprise.' After arguing that this position was unsound, the President said: "It will be noted that in this analysis of this abandonment of principle I have attacked no person. The President added that this provision of the bill "helps the very few, therefore, at the expense of the many. " Regraded Unclassified 73 - 2 - Pat Harrison did not conceal his resentment at the President's action. The New York Times of May 28 said: "As leader of the conservative group in the Senate, Mr. Harrison was obviously deeply cut by the speech. He had headed the Senate movement which rejected completely the tax schedules on capital gains and undistributed profits written by Administration leaders into the Tax Bill in the House. "By compromising on the measure as it went to the White House, this group expressed the view at the time that it had taken a 'long step backward' in order to maintain Democratic unity in Congress and avoid the appearance of repudiating the President." The President's action with respect to the Revenue Act of 1938 could of course be made a precedent for action on the Revenue Act of 1944 if the President wished to call attention to the defects of the bill but at the same time considered the small net gain in revenue worth having. wer Regraded Unclassified 74 FOR THE PRESS May 27, 1938 CONFIDENTIAL UNTIL RELEASED CAUTION: This address of the President to be delivered at Arthurdale, West Virginia, MUST BE HELD in strictest confidence until released for publication in the afternoon editions of newspapers of today, May twenty-seventh, RELEASE is autematic, at 2:00 (two) e'olock, P, M., EASTERN STANDARD TIME. Care must be exercised to prevent premature publica- tion. STEPHEN EARLY Secretary to the President At last after many attempts I have succeeded in coming to Arthurdale -- and I greet you as friends because you are Mrs. Roosevolt's personal friends and because I have heard so much about you. Much has been written about you good people, about the conditions of life in certain towns in this part of the world and about what the government has done here at Arthurdale. The na- tion has heard about Scott's Run with its very poor conditions of life, and the nation has heard about Arthurdale with its vastly improved conditions of life. But I think : voice the thoughts of you who live here when I say to the country over the radio that about the last thing you would want, would to be publicized as some rare and special type of Americans. Lot me put it this way and I think and hope that you will agree with no when I say: In 1933 the whole nation know that it faced a orisis in oconomic conditions but the nation did not realize that it faced a erisia in social conditions. If anyone were to ask ne what is the outstanding contribution that has been made to American life in the past five years, I would say without hesitation that it 10 the awakening of the social conscience of America. As one part, and only one part, of the effort of your government to improve social conditions, ve undertook in dozens of places scattored over almost every part of the country, to set up, with the cooperation of the local people themselves, projects to provide botter homes, B. botter chance to raise foodstuffs, and a better chance to make both ends meet in maintaining a reasonably decont standard of life through the passing years. Many difforent types of projects wore undertaken -- some of them in wholly rural sections, nome in cities, some in suburbs, some for industrial workers, some for miners, some, like Arthur- dale, a combination of industry and farming. Those projects repre- sont something now and because we in America had no experience along these lines, there were some failures -- not a complete failure in the case of any given project, but partial failures due to bad guesses on coonomic subjects like new industries or lack of markets. On the whole, however, the percentago of good guossos in the average of these projects has been extraordinarily high, and for this success the principal part of the credit properly should go to the indi vidual families who, themselves, have como to live in these now communities. Regraded Unclassified 75 -2- The lessons we have all learned will save n. hundred times their cost in dollars as fast as government or private capital -- or as I hope, both -- go on with the inevitable task of improving living conditions throughout the country and help- ing Americans to live as modern science has made it possible for them to live, The extra cost of pioneering ventures such as this represents development cost which we justifiably charge off as the inevitable cost of all progress -- just as we have in the past charged off the huge government share in the development costs of the railroads, the cables, the airplanes, and the improved highways that made the automobile possible. But what is equally important to me, the lessons learned from this first bold govern- ment venture will save human lives and human happiness as well as dollars in this march of progress ahead of us, This is a high school graduation and I am speaking just as much to you who graduate today as to your parents and your grown- up friends. You are the citizens of tomorrow -- not just this graduating class but thousands of other high school graduating classes in every state of the Union, When you, today's graduates, were of grade school age we, your elders in the United States, were asleep at the switch and your government also was asleep at the switch. For many years, other nations of the world were giving serious consideration to and taking definite action on social problems while we were pushing them aside with the Idea that some day we would get around to meeting them. We had heard of the ideals of ending child labor, of initiating a five-day week, of shortening working hours, of putting a floor under wages, of clearing slums, of bringing electricity into homes, and of giving families the chance to build or buy a home on easy terms, of starting old-age pensions and unemployment insurance. But all these things were in the greater part a beautiful dream -- a dream until government, five years ago, tired of weiting, stopped in and started to make the dreams come true, Government has done little more than to start the ball rolling. Government knows how much more there remains to be done. But Government hopes, now that it has taken the first risks and shown the way, that private capital and business mon will see how much it is to their own advantage -- and profit -- to keep the ball rolling -- and keep it rolling so wall that the inovitable wider improvement in American social conditions will come about in normal course of privute enterprise without compelling Government to use large amounts of tuxpayers' money to koep America up to date, Many sincere people -- good citizens with influence and money -- have come to West Virginia mining towns in the past two or three years, to sue the conditions under which American families lived, conditions under which, unfortunately, many. American families still live. Many of these people have come to sea me after their visit to Scott's Run or similar places und have expressed to no their surprise and their horror at things they have seen, They have said: "I did not imagine that such conditions could exist in the United States." They have wanted to help at the particular spot they have seen -- but the lesson which I have found it difficult to got across to them had been the fact that they have seen only one spot or two spota -- thy, single spote on a map of the United States, a map which is covered over with hundreds and even thousands of similar spots. Un-American standards exist by no means in a few coal towns only. They exist in almost every industrial community and they exist in very many of the farming counties of the country, Regraded Unclassified 76 -3- Now of course, pending the time that private capital and private enterprise will take up the burden, the money Govern- ment thus spends to encourage the nation to live better -- especially that part of the nation which most needs it -- is taxpayers' money- Two questions, therefore, arise: "Is that spending justified from the point of view of the individual taxpayer and how should the money be raised". Bo far as the taxpayer's individual interest is concerned, I always look at it this way. Taxes, local and state and federal combined, are nowhere near as high in this country as they are in any other Great nation that pretends to be up to date. If I were a business man making and hoping to continue to make good profits, I would remind myself as I paid my income tax, moderate by the standards of other nations, that the most important factor in the kind of an active economic life in which profits can be made, is people -- able, alert, competent and up-to-date people -- to produce and to consume. Money invested to make and keep the people of this nation that kind of people is therefore a good business investment. And if I were the same man thinking about inheritance taxes and what I could leave to my children, I would say to myself that to leave them a living in a nation of strong and able men and women is to leave them 6 better heritage of security than B. few thousand dollars Saved on an inheritance tax. Now, how should taxes be paid? For a great many years, the Nation as a whole has accepted the principle that taxes ought to be paid by individuals in accordance with their capacity to pay. To put It another way, it has meant B. graduated tax on a man's increase in wealth. For instance, B. poor man or poor family whose increase in wealth in a given year is below a certain August 24ys no direct Federal taxes at all; when the family gains more than $2,500 in 8 year the family pays EL small percentage on these gains. As the gains get still larger, the percentage of the tax goes up so that when B. family's wealth increases to say $100,000 & year, they have to pay a. third of it to the Federal Government. In the case of still richer people, they may have to pay more than half of their large incomes to the State and Federal governments. Last week the Congress passed a new tax bill. It con- tained many good features -- improvements in tax administration, the elimination of a number of nuisance taxes on articles in common use, the lightening of the tax burden on the small corpo- ration as I recommended to the Congress last Fall. I hope that these changes made by this tax bill may be helpful to business and that this belief may, in itself, be a factor in the revival of business enterprise. But, on the other side of the ledger, I cannot help but regret that two very fundamental principles of government must once more be called to the attention of the public. Both of them, stripped of every attempt to confuse, are extraordinarily simple and can be understood by every citizen. In 1936 many large corporations, especially those owned or controlled by a comparatively small number of very rich stock- holders were in the habit of failing to declare dividends they had earned. Thus their stockholders were in 6. position to leave the profits their money had made in the controlled corporation -- paying the government on these profits only the normal corporation tax of from ten to fifteen percent. Thus, these stockholders avoided paying a personal income tax at as rate which in many cases would have involved a tax payment of fifty percent or even higher because the stockholders were in what is known as the upper brackets of the personal income tax. Regraded Unclassified 77 - 4 The Treasury Department found many instances of closely held corporations which, starting with the comparatively modest capital of several million dollars had, over a period of years grown into corporations worth several hundreds of millions of dollars without ever declaring a dividend to their stockholders. This meant a definite, though of course strictly legal, device by which these stockholders greutly increased their wealth year by year without having to pay to the government more than a normal corporation tax, thus escaping very large sums of personal in- come tax payments. The Revenue Act of 1936 sought to end this serious loop- hole. In principle our objectivo was right but in practice the Act as finally worked out in the Senate undoubtedly did prevent many small corporations from normal and reasonable business expan- sion, from building up adequate surpluses, or from paying off old debts. The tax bill this year sought to get rid of these in- quitable features but to retain at the same time the principle of stopping tax avoidance. As finally passed, the bill retains that principle but the penalty for withholding dividends to stock- holders is 50 amall -- only two and EL half per cent at the most - that it is doubtful whether it will wholly eliminate the old tax avoidance practices of the past. It is true that the bill seeks to strengthen the auth- ority of the government to not against companies which clearly seek to avoid surtaxes for their stockholders by failing to de- clare dividends out of their profits; and I hope that this new provision, together with the recent favorable docision of the Supreme Court in interpreting the prior law, will retard the revival of the old evil. It seems to as that it 16 the definite duty and interest of the public and of the Legialative and Execu- tive branches of the government to watch very closely to see what happens during the coming year. We must always remember that this old method of greatly increasing private fortunes through the withholding of corporate dividends was open and useful only to those citizens who already had wealth large enough to control those large corporations -- people whose personal income vas already large enough to put them in the higher surtax brackets. The position of the Administration is, therefore, this: No are delighted to remove any existing barriers against every little business in the Nation which is seeking to set itsolf squarely on its own feet; seeking to pay off its debts and seek- ing to make a rensonable profit; but the Administration does not went large closely held corporations muking large profits to be used as 0 vehicle by the small number of their owners in order to avoid legitimate income taxes. For a number of years it has been recognized that this progressive taxation of wealth realistically should apply not only to salaries and dividends and bond coupons but also to other forms of woolth such as increase in one's capital by soll- ing any form of property at a profit. This now bill wholly eliminates the progressive tax principle with respect to those capital profits: it taxes emall cepital profits and large capital profits at exactly the same rate. Regraded Unclassified 78 4 In other words, if you or I sell stocks, which wo have held for a. few years, at a profit of, let us any, five thousand dollars, we have to pay a tax of fifteen per dent on that profit; wherens, the man who has made a profit of five hundred thousand dollars on stocks he has owned is required, under this new bill, to pay a tax of only fifteen per cent, just as you and I would Nobody, by any stretch of the imagination, can say that this new;provision maintaine the principle of payment in proportion to ability to pay. Some people who have favored this abandonment of principle have justified their position on the ground that one has to abandon principles once in & while when there is as morgenty and that the abandonment of this particular principle will encourage many rich nun to take a risk with their cupital and invest it in new enterprises. But this school of thought finds it difficult to answor the inct that almost all -- about vighty per cent of all orpital gaina reported -- are profits mado in the stock- markst ... profits made not by developing now companies but by buying stocks of old companies low and selling them high, or by the still possible method of selling stocks short -- selling stocks you do not own -- and then buying them in at a lower prico. The abundonment of the principle of progressive tax payments in accordance with capacity to pay may encourage e. mall Amount of capital to go into new productive enterprises but, chiefly, 1t will help those who make largo profits in buying and solling existing stocks. New productive onterprise is not created by the buy- inc of stocks of esteblished companies when they are low and selling them when they are high. I should like to son a revision of our tax lows which would rually encourage now unterprise and now investment and the undertaking by private capital of projects like this that the Government has undertakon hero at Arthurdale. But there is no assurance that untaxed savings will E° into such now investment 0.* now enterpriso. They may be hoarded or lost in the inflution or doflation that occurs in the shuffling about of existing invustments. To should adopt tax policios which will oncourage men to winture and to build now productive worlth. Unless somothing is added to the combined woulth of the nation, one man's capital gain say be nothing noru than another man's capital loss. It vill by noted that in this analysis of this hbandon- munt of principle, I have attacked no porson. I have merely culled the attention of the country to certain clear-out inescap- able facts -- and especially to the fact that this tax bill which in many respects is a good one, notually abandone the accepted principle of progrossivo tuxntion at a point which is very import- are in our economic life. Hore again is an example of n. provision of law which natually, and in plain English, gives an infinitoly greater tax concession to the man who makes a vory groat profit than to the man who make la comparatively small profit. It helps the very few, therofore, at the expense of the many. To earry on Government a total G on has to be ralsed. If the many who make small capital gains have to pay the and rate AS the few who make large capital Chinn, it wonne that the tax rato for the littlo follow must be higher than if TO had stuek to the accepted principle of a graduated tuz. In accordance with recommendations mdo during several pust years, I hope that the Congross will undertake a broader pro- gram of improving the Fodoral tax systom ns n. whole in the light of accepted principlos of fairness in Amorican taxation and of the necessary incontives in our oconomic lifo. Regraded Unclassified 79 -6- You will sue the difficulty in which your President has been placed. This tax bill contains features that ought to become law, but it contains several undesirable features, especially the ones I have just been talking about. If I sign the bill -- and I have until midnight to- night to sign it -- many people will think I approve the abundon- ment of an important principle of American taxation. If I veto the bill it will prevent many of the desirable features of 1t from going into effect. Therefore, for the first time since I have been Presi- dent, I am going to take the third course which is open to me. I am going to let the Act go into effect at midnight tonight without my approval. By so doing, I call the dofinite attention of the American people to those unwise purts of the bill I have talked to you about today -- one of them which may restore in the future certain forms of tax avoidance, and of concentrated investment power, which we hud begun to end, and the other a definite abandonment of a principle of tax policy long ago accepted as part of our American system. Two things we can well remember. The first is that our whole tax system, state, local and federal, can and must be greatly improved in the coming year. The second is that we in this country are getting more practical results in the way of bettering the social conditions of the nation out of our taxes than ever bofore in our history. That is why it is a pretty good idea to talk taxes not only to parents but to the younger generation of America. I am proud of what I have seen here today and I am proud of all of you who are helping BO greatly to make this community on American success. Regraded Unclassified 80 February 1, 1944 5:02 p.m. HMJr: Hello. Ted Gamble: Hello, Mr. Secretary. HMJr: Look, Ted. G: Yes. HMJr: I had that statement that you wanted me to sign G: Yes. HMJr: and Ted's sitting here and -- I mean Fred's sitting here and you're on the loud speaker. G: Yes. HMJr: It's no good. Now, I'm too tired to tell you what is a good statement but I know this is just what I don't want. G: Yes. HMJr: And whoever prepared it 1s just out of tune. Now, you can't pat all these big fellows on the back and then turn around and say that that's going to help inflation because that just isn't 80. And then keep on saying, "Keep on buying little bonds.' It's like trying to mix.oil and water. And I don't think -- it isn't a question that I don't want to sign -- I don't think anybody should make a statement like that. G: Well, we didn't HMJr: Fred said he prepared it. I didn't know that. G: Yes. Well HMJr: I didn't know that. G: I didn't interpret it that way, Mr. Secretary HMJr: Look G: when it was read to me. HMJr: Well, take it from me, will you? Regraded Unclassified 81 - 2 - G: I agree what you said shouldn't be said. HMJr: Well, I don't want 0: But that isn't the way I interpreted HMJr: anyone to say it and I don't see why we can't just let the thing come out and if you want to just let Treasury spokesmen point out that beginning with February lst these two longer bonds begin to draw interest and with the result that the larger corporations begun to subscribe as of today. G: Yes. HMJr: But I -- I wouldn't play it up. G: Uh huh. HMJr: I think you've got to keep playing up "We want $3 billion worth of E Bonds, and $51 billion from individuals." Anything over and above that is just gravy. G: Yes. HMJr: But I -- I wouldn't, then, on the lst of February pat the big corporations on the back. Now, I didn't know -- I thought this came from your shop, but it evidently -- well -- 80, will you -- without 0: Well, maybe we could do this, Mr. Secretary. Maybe we should just use that part of it where you comment on the individual sales, and then HMJr: I wouldn't get out any statement. G: Yes. HMJr: I think it's too early. G: All right, sir. Well, we HMJr: Things are going beautifully. G: Yes. HMJr: I'd leave it alone. Regraded Unclassified 82 - 3 - G: Fine. Well, we'll just give out the figures then. HMJr: I'd give out the figures and I would point out the fact that the reason for the big increase is that these -- the 24 and 21 begin to draw interest as of February lst. G: Yes. Right. HMJr: And you can't even have the February lst. They haven't --they're not even in here. G: Well, you see, what we have is the back-log of corporation reports to make today. HMJr: Now, are you disappointed? G: No. No. I -- I HMJr: Or do you by chance agree with me? G: Well, I do agree with you. My primary interest in it, Mr. Secretary--let me say that maybe I was doing a little job of press-agenting for you. My primary interest in it was that I thought the fact that we were releasing big figures for the first time it would get some attention, and_ I thought an appropriate place for you to say something. That was my primary interest in it. HMJr: Well, thanks for the bouquet but it's got too many thorns on it. G: Yes. HMJr: And my -- I'm only interested in the success of the War Bond Drive. G: Yes. HMJr: And I think it's inappropriate. G: Yes. Well, we'll Just do what you suggested. HMJr: What? G: We'll do what -- just exactly what you suggested. Regraded Unclassified - 4 - 83 HMJr: Now, let me give Fred his say in court. (Pause) HMJr: Fred says he's all right. G: All right, sir. HMJr: And when he -- and he's saying it with a smile. G: Right. Well, you don't have to worry about Fred and I. (Laughs) We usually agree with you. When you convince us, I mean. HMJr: Yeah, that was an afterthought. (Laughs) G: (Laughs) All right, sir. HMJr: That's the way you do with your -- with your little daughter, too, huh? G: (Laughs) That's right. HMJr: You go along with her (Laughs) when she convinces you. G: All right. HMJr: What? All right. Give her my love. G: I'll do that, sir. HMJr: All right. G: Good night. Regraded Unclassified 84 TREASURY DEPARTMENT Washington FOR IMMEDIATE RELEASE, Press Service Tuesday, February 1, 1944. No. 40-55 The Secretary of the Treasury today announced the final subscription and allotment figures with respect to the current offering of 0.90 percent Treasury Notes of Series D-1945. Subscriptions and allotments were divided among the several Federal Reserve Districts and the Treasury as fol- lows: Federal Reserve Total Subscriptions District Received and Allotted Boston $ 134,699,000 New York 1,029,319,000 Philadelphia 56,431,000 Cleveland 91,216,000 Richmond 37,568,000 Atlanta 68,870,000 Chicago 294,558,000 St. Louis 72,590,000 Minneapolis 53,487,000 Kansas City 65,770,000 Dallas 46,804,000 San Francisco 174,615,000 Treasury 520,000 $2,126,447,000 -o00- Regraded Unclassified 85 2/1/84 TO THE FEDERAL HOME LOAN BANKS AND SAVINGS & LOAN ASSOCIATIONS OF THE UNITED STATES: We know from experience that it takes a number of days to develop the spirit and enthusiasm of a great War Loan Drive to the point where personal solicitation can produce the best results. Often the second call is the effective one. 80 I an writing to ask for your unflagging support of the Fourth War Loan in the last half of the Drive period. In this, as in previous campaigns, word has come from War Finance Committees in every part of the country regarding the patriotic and effective participa- tion of your institutions. You earry a substantial part of the burden of issuing Bonds, and your contact with savers in rural districts as well as cities enables you to perform a most valuable service in the wide distri- bution of War Bonds which is so importent. With colossal military operations imminent on far flung battle fronts, the oversubseription of every Fourth War Loan quota--National, State and local--is of vital importance. Our fighting men are looking to us to back them up. I know we can count on your wholehearted sup- port to the end of this Drive and beyond, Sincerely, (Wigned) H. Morgenthau, Jr. RHE:DFT Regraded Unclassified The Secretary 86 FOURTH WAR LOAN 2/14+ Beginning January 18, 1944 (In millions of dollars) Cumulative : Through : Through : Through : Through : Through : Through : : Jan. 28 : Jan. 29 : Jan. 31 : : : : : : : : : : : : : : : : : : Series E Bonds : 874 : 944 : 1,007 : : : : : : : : : : : Series F Bonds : 53 : 60 : 66 : : : : : : : : : : : Series G Bonds : 266 : 296 : 319 : : : : : : : : : : : 2-1/2% Treasury Bonds : 250 : 312 : 400 : : : : : : : : : : : 2-1/li% Treasury Bonds : 378 : 519 : 639 : : : : : : : : : : : 7/8% Certificates : 790 : 968 : 1,230 : : : : : : : : : : : Series C Notes : 644 : 834 : 967 : : : : : : : : : : : : : : : : = : TOTAL : 3,255 : 3,933 : 4,628 : : : : : : : = : = : : : : : : : : Regraded Unclassified 87 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE FEB 1 1944 TO Secretary Morgenthau FROM Mr. Paul You have inquired as to the responsibility of the Secret Service for the protection of the person of the President. The Secret Service assumed the responsibility for the protection of the person of President Theodore Roosevelt in 1901 after the assassination of President McKinley. This activity was subsequently ratified and authorized by items for the Secret Service in the annual appropriation acts beginning with 1906. The Secret Service item in the current appropriation act provides for "the protection of the person of the President and the members of his immediate family and of the person chosen to be President of the United States. " There is no other legislative definition of the duties of the Secret Service in regard to this matter. Apr Regraded Unclassified 88 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION Regraded Unclassified DATE February 1, 1944 TO Mr. Thompson FROM Mrs. Doyle mw D Re: Day Care Service for children of working mothers A. Circular No. 3 (attached) has been distributed to all personnel officers, and mothers who have expressed interest in the day care service. It contains information on schools recently opened as well as the contents of the two preceding circulars on Day Care Service. B. Brit Interviews Six cases of mothers and one grandmother who were about to resign because of the need for care of their children were referred by personmel officers to the Employee Relations Section, Resume of Interviews 1. A transfer from night work to day work enabled one mother of a two year old child to continue work in the Treasury. 2. A grandmother, in sole charge of grandchild, at present on leave, will enter child in nursery school as soon as it opens and then return to job. The other five women were told of all child care possibilities, but other factors were such that resignation was the only solution. 3. Mother of 4 children, ages 5 months to 3 years, could not manage so many children and job. 4. Mother of one baby, one year old, with another coming in March felt she must stay home for reasons of personal health. 5. Mother of 2 children, 9 and 7, with husband just drafted. The husband persuaded her to give up job so that be "would not be worried over her and children while be was in the Army". She will go "back home". 6. Mother of two small children whose husband had just resigned to go "back home". 7. Mother of 21 year old for whom nursery school facilities "RES founds Guld not manage job, home and nursery school because she felt her health would not permit. Q. Common ty Contacts Continuous contacts are maintained with sources of assistance through day care facilities. Interviews for mothers with the officials of the day care facilities are facilitated with minimum loss of working time to the mothers. the TREASURY DEPARTMENT 89 Division of Personnel February 1, 1944 Circular No. 3 on Facilities for Day Care for Children of Working Mothers in Metropolitan Washington DISTRICT OF COLUMBIA Offices of the District of Columbia Service to Children of Working Mothers are at 472 Indiana Avenue, Telephone National 6000, Extensions 2880-2881. All parents must call this office for an appointment before enrollment of a child. SERVICES AVAILABLE LTOW Nursery Schools (Children 2 - 5) For White Children 314 D Street, S. E. Truesdell School, 9th & Ingraham St., N. W. Langdon School, 20th and Evarts Street, II, E. For Wegro Children Harrison School, 12th ¿: V Street, N. W. Smothers School, 44th & Washington Place, N. E. Langston Terrace, 24th and Benning Road, N. E. School Age Centers (Children 5 and over) For White Children 314 D Street, S. E. H. D. Cooke School, 17th & Euclid Street, II. W. Thompson School, 12th and L Street, it. W. For legro Children Smothers School, 44th & Washington Place, N. E. Lorgan School, 18th & V Street, N. W. Foster Care Service (Children 2 and under) Applications for day foster homes for children under 2 and for children who cannot attend the day care centers or nursery schools are accepted. Fees - The fees range from eight dollars per week per child down to free care for the second or third child of a woman whose income is low. Hours and ..eals - Centers are open six days 8 week from 7 to 7. A hot lunch at noon, and mid-morning and mid-afternoon snacks are provided. MONTGOLD.RY COUNTY, MARYLAND SERVICES AVAILABLE now Nursery Schools (Children 2 to 5) For White Children Fairway Hills War Nursery, Chapel of the Redeemer, Dunrobbin Road Glen Echo, Maryland (For information, telephone Oliver 6489) Takour Park Nursery, Philadelphis Avenue and Cedar St., Takoma Park, Maryland (For information, telephone Silver Spring 0464) Fees - $3.00 por wouk per child Hours and meals - Centers are open from 7 a. a. to 6 or 6:30 P. m. days' a week. 4 hot lunch at noon, and mid-morning and mid-afternoon snacks are provided. Regraded Unclassified - 2 - 90 PRINCE GEORGE'S COUNTY, MARYLAND Office of the Supervisor of Pre-School Child Care Centers is in the Hyatts- ville Elementary School, Hyattsville, Maryland, Telephone Hyattsville 0369. SERVICES AVAILABLE NOW Nursery Schools (Children 2 through 5) For White Children Suitland Elementary School, Suitland Road, Suitland, Maryland Greenbelt Child Care Center, 14 Parloway Road, Greenbelt, Md, Calvert Home Development Fees - $3.00 per week Hours and meals - Schools are open six days a week from 7 to 6 or 6:30. Hot noon meals, and mid-morning and mid-afternoon milk or fruit juices and cookies or sandwiches are served. ALEXANDRIA, VIRGINIA Offices of the Supervisor of Nursery Schools and the Elementary Supervisor for Extended School Services are in the Jefferson School Annex, Alexandria, Virginia, Telephone Alexandria 4656. SERVICES AVAILABLE NOV Nursery Schools (Children 2 to school age) For White Children Goorgo Lason School, 2601 Camoron Mills Road Ht. Vornon Bursery School, 2600 Mt. Vornon Avenue Washington Nursery School, Acadomy Bldg., 400 S. Washington St. For Nogro Children St. Josoph's Church, corner Columbus and Wythe Streets Foes - $3.00 wookly for White children $2.00 wookly for Wegro children Hours and Roals - Schools are opon from 7 to 6, six days a week. A hot noon moal, and mid-morning and mid-afternoon snacks are served. Extended School Services (School Age) For White Children Jofforson School Annex, Alexandria, Virginia Foos and Hours 12:30 to 6 p. D. daily and 7 to 6 Saturday - $4.00 weekly 3:45 to 6 p. n. daily and 7 to 6 Saturday - $2.00 weekly 7 to 6 Saturday only - $1.00 weekly Moals - de hot lunch is provided daily. For further information telephone the Main Treasury Building, Ext. 2009. JOSEPH A, JORDAN Chief, Employee Relations Section Regraded Unclassified TREASURY DEPARTMENT WASHINGTON 25 TART February 1, 1944 TO OFFICERS AND EMPLOYEES OF THE TREASURY DEPARTMENT: The President, under date of January X. 1944, issued the following memorandum to all heads of departments, commissions or agencies: "The excanding operations of our Armed Forces throughout the entire world have necessitated corresponding expansion of the services of the American Red Cross in all of its fields of foreign and domestic activities. In our grim and solemn task the fortitude and devotion of the Red Cross in sustain- ing the morale and welfare of our men in the several Services is of inestimable value. "For the far-flung operations of the American Red Cross immense material and financial resources are required and it is essential that steps be taken to assure that our Federal and District Government employees contribute their pronor- tionate share to its voluntary succort. This is important from a national as well as a local viewoint. I have, there- fore, appointed Honorable Ernest G. Draner, Member of the Board of Governors of the Federal Reserve System, as Chairman of the Government Unit of the 1944 Metronolitan Area Cammaign. I earnestly desire that you cooperate with him to create an adequate campaign organization for the successful solicitation of the employees within your own decartment. The success of last year's appeal gives ample assurance of the generosity of our people in the attainment of the greater 1944 goal. "The welfare of our forces depends in no small degree on the present vast and increasing responsibilities of the Red Cross at home and abroad. Through our gifts we may nar- ticipate in this great Institution's faithful service to those bound to us in love and valiant sacrifice. Let's bear in mind that in this way we may express our deep gratitude and our great concern for their well-being." The American Red Cross has set a national goal of $200,000,000 with a quota for the Federal Government of $1,105,800. Regraded Unclassified - 2 - This national goal represents the actual needs of the Red Cross so gustain its ever increasing services to the men and women of the Aray, Navy and Marine Coros. In view of the indicated needs you can see there is the neces- sity for that wholehearted response to anneals for assistance which has always characterized the personnel of the Treasury Department. If each one avails himself of the ovportunity to contribute to this cause, we will encounter no difficulty in reaching our allotment, It has been my pleasure to designate the "onorable John L. Sullivan, Assistant Secretary of the Treasury, AS Department Chairman, and I request that the heads of all bureaus and offices render him every possible assistance in promoting this most worthy undertaking. Secretary of the Treasury Regraded Unclassified AAA 93 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE FEB - 1 1944 TO Secretary Morgenthau FROM Randolph Paul For your information After reading & resume of Jim Mann's strictly con- fidential memorandum concerning Argentina, you inquired about Meyer Pellegrini and his relationship with our Embassy in Argentina. Pellegrini is a well-known Argentine lawyer of German descent and & one-time Cabinet Minister, National Deputy, and Interventor. Pellegrini is directly or indirectly associated with numerous German interests in Argentina, particularly those of Fritz Thyssen. He was formerly President of Thyssen-Lametal, an important steel and pipe producer and distributor, which was placed on the Proclaimed List in July 1941, and he is still, behind the scenes, the head counsellor And director. He is closely associated with Hellmuth Simons, an Argentinean who is reported to be & Section Chief of the Gestapo, and with many other individuals who maintain official connections with large Proclaimed List firms in Argentina. He was formerly President of the Banco Germanico and retained that position, even though the bank was on the Proclaimed List, until pressed by the Embassy to resign. Pellegrini has recently organized at least nine com- panies, many of which appear to be unprofitable and some of which have served as cloaks for Axis capital in Argentina. He is reported to have signed official documents testifying to the moral character of German spies in order to permit their legal entry into Argentina. The relationship between Pellegrini and our Embassy is not known to us. However, & recent despatch from our Regraded Unclassified 94 - 2 - Embassy, which sets forth many of Pellegrini's undesirable activities, concludes with the recommendation that no sanctions be applied to Pellegrini. Pellegrini has no funds in this country in his own name, and the assets held in the names of the companies with which he is closely affiliated are blocked. However, in order to place the facts on the record and with a view to recommending his inclusion on the Proclaimed List, we are requesting our Embassy to report more fully concerning Pellegrini's activities. hh Regraded Unclassified 95 VICTORY BUY treasury DEPARTMENT UNITED STATES WAR BONDS : PROCUREMENT DIVISION STAMPS WASHINGTON 25 OF THE DIRECTOR SECRET February 1, 1944 MEMORANDUM TO THE SECRETARY: There is submitted herewith the weekly report of Lend-Lease purchases. The Procurement Division has contracted for 5,152,000 lbs. of binder twine, the amount required for use in harvesting of crops in North Africa. Ciffton E. Mack Director of Procurement Regraded Unclassified 96 LEND-LEASE SECRET TREASURY DEPARTMENT, PROCUREMENT DIVISION STATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND DELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS AS OF JANUARY 26, 1944 (In Millions of Dollars) Administrative Miscellaneous & Total U. K. Russia China Expenses Undistributed Allocations $4637.3 $2287.9 $1862.4 $113.8 $11.0 $362.2 (4628.5) (2286.9) (1860.6) (113.8) (10.6) (356.6) Purchase Authoriza- $3478.8 $1819.9 $1369.7 $44.4 - $244.8 tions (Requisitions) (3425.5) (1793.3) (1350.9) (44.3) - (237.0) Requisitions Cleared $3361.2 $1756.2 $1337.1 $44.1 - $223.8 for Purchase (3331.0) (1740.1) (1325.1) (43.8) - (222.0) Obligations $3236.3 $1716.4 $1307.9 $43.7 $9.6 $158.7 (Purchases) (3202.0) (1702.4) (1291.9) (43.7) (9.6) (154.4) Deliveries to Foreign $1663.5 $1127.0 $ 468.2 $21.1 - $27.2 Governments at U. S. (1628.9) (1103.0) (480.5) (20.6) - (24.8) Ports* *Deliveries to foreign governments at U. S. Ports do not include the tonnage that is either in storage, "in-transit" storage, or in the port area for which actual receipts have not been received from the foreign governments. Note: Figures in parentheses are those shown on report of January 19, 1944. 97$ BRITISH air COMMISSION 1785 MASSACHUSETTS AVENUE WASHINGTON, D. C. TELEPHONE HOBART 9000 ASE QUOTE ERENCE NO With the compliments of British Air Commission who enclose Statements Nos. 121 and 122 - Air- craft Despatched - for the weeks ended January 18th and January 25th respectively. The Honourable Henry Morgenthau, Jr. Secretary of the Treasury WASHINGTON, D.C. February 1, 1944. Regraded Unclassified 97g BRITISH air COMMISSION 1785 MASSACHUSETTS AVENUE WASHINGTON, D. C. TELEPHONE HOBART 9000 ASE QUOTE ERENCE NO With the compliments of British Air Commission who enclose Statements Nos. 121 and 122 - Air- craft Despatched - for the weeks ended January 18th and January 25th respectively. The Honourable Henry Morgenthau, Jr. Secretary of the Treasury WASHINGTON, D.C. February 1, 1944. Regraded Unclassified MOST SECRET MOST SECRET STATEMENT NO.121 Aircraft Despatched from the United States Week Ended January 18th, 1944 ASSEMBLY BY BY FLIGHT DELIVERED TYPE DESTINATION POINT SEA AIR FOR USE IN CANADA CONSOLIDATED Liberator B-VI India India 6 Liberator GR VI U.K. U.K. 3 Liberator GR VI India India 1 GLENN MARTIN Marauder II M.E. N.E. 6 Baltimore V M.E. M.E. 10 NORTH AMERICAN Mitchell II U.K. U.K. 13 Harvard East Africa Tanga (B.A.D.) 1 Mustang U.K. U.K. 21 VEGA intura GR V M.R. M.E. 8 intura GR V S. Africa 8. Africa 2 DOUGLAS Dakota III U.K. U.K. 3 Dakota III India India 8 Dakota III S. Africa S. Africa 1 BOEING Catalina IV U.K. U.K. 3 FAIRCHILD Cornell I Canada Canada 59 GRUMMAN Avengers E. Africa Mombasa 8 Avengers U.K. U.K. 8 Wildcat U.K. U.K. 1 VULTEE Vengeance U.K. U.K. 3 engeance India Karachi 9 engeance Australia Sydney 10 CURTISS Kittyhawk N.W. Africa Oran 21 Kittyhawk New Zealand Auckland 5 NOORDUYN Harvard U.K. U.K. 10 Norsemen Australia Sydney 3 STINSON Reliant Ceylon Ceylon 1 Movements Division Total: 101 64 59 British Air Commission, 22/1/44 Regraded Unclassified MOST SECRET STATEMENT NO.122 NOT SECRETY Aircraft Despatched from the United States Week Ended January 25th, 1944 ASSEMBLY BY BY FLIGHT DELIVERED DESTINATION POINT SEA AIR TYPE FOR USE IN CANADA CONSOLIDATED Liberator B VI M.E. M.E. 2 Liberator B VI India India 5 Liberator GR VI U.K. U.K. 4 Liberator GR VI India India 2 Coronado GR I U.K. U.K. 2 NORTH AMERICAN Mitchell II U.K.. U.K. 16 Mustangs U.K. U.K. 34 Harvard M.R. Sues 5 VEGA Ventura GR V M.E. M.E. 13 Ventura GR V S. Africa S. Africa 2 MARTIN Baltimore III A M.E. M.E. 1 Baltimore V N.E. M.E. 17 DOUGLAS Dakota III India India 9 Dakota III U.K. U.K. 15 Dakota III S. Africa S. Africa 1 BOEING Catalina IV B U.K. U.K. 3 FAIRCHILD Cornell I Canada Canada 33 Argus India Karachi 10 CURTISS Seamew U.K. U.K. 2 Kittyhawk N.W. Africa Casablanca 15 Kittybawk New Zealand Wellington 4 VULIEE Vengaance Australia Sydney 4 NOORDUYN Norseman Australia Sydney 1 Total: 75 92 33 Mot ente Division British Air Commission January 31, 1944 mb Regraded Unclassified 100 PLAIN HL - - 420 Cairo Dated February 1, 1944 Rec'd 5:44 p.m. Secretary of State, Washington. 217, first. FOR SECRETARY OF TREASURY FROM MIKESELL. Leaving Cairo for work in Palestine and Syria for two weeks. KIRK WVC copy 0f12-2-44 Regraded Unclassified 101 NOT TO BE RE-TRANGUITTED U.S. SECRET COPY NO 12 BRITISH MOST SECRET OPTICE lo. 37 Information received up to 10 A.M. 1st February, 1944 L NAVAD Up to 10 A.M. yesterday no ships in convoy to RUSSIA had been toroodood. About 40 ratings were lost on one of H.M. Destroyers. Weather conditions excellent at ANZIO Bridgohend and unlos ding progressos roll. One of n.M. Submerines shelled 2 seaplane bases in SOUTHERN PRANCE on 23rd and 27th respectively. On 30th. another of R.m. Submarines torpodoed two Mostbound ships of 7,000 tons and 3,500 tons off POULON and on 31st torpedood to Eastbound coasters. On 29th/30th coantel forces Bank E small Gorman tanker and a large schooner off YUGOSLAV count, 8 prisoners vero captured. Yesterday two of 9.M. Sloops senk a 0-bost in South Vestern Approaches. 2. MILITARY Italy To noon 31st. 8th army. Canadians have made B small advance astrido the TOLLO Road against strong opposition. 5th. army North of CASSINO there has been more heavy fighting In French sector. U.S. Troops have captured the village of CAIRO 2 miles Northwest of CASSINO. In sritish sector enemy is still countersttacking around CASTELFORTE and MINTURNO. 6th Corps British and U.S. Forces began an attack on 30th but are held up outside CISTERNA and CAMPOLEONE. 3. AIR OPERATIONS Western Front 30th/31st. BERLIN. 983 tons HE and 820 tons incondiaries dropped including 341 4,000 pound bombs. 31st. Escorted Liberators dropped 189 tons on military constructions Northern FRANCE. Escorted Thunderboit bombers dropped 16 tons with good effect on an cirfiold in Southern HOLLAND. Enemy casualties 13:0:1. Allied six missing. Italy 28th/29th. Wellingtons dropped total of 55 tons on railway centrer at FOBIGNO and VERONA, 2 Wellingtons missing. 29th. Railway communications in East and Central ITALY were attacked by medium and heavy bombers which dropped about 675 tons, 3 medium bumbers missing. A total of 430 light and fighter bombers operated over the Vestern Bittic ares, 54 motor vehicles were destroyed, 84 damaged and 2 enumy fighters anot down. OFTEL NO 36 not sent to ashington. TREASURY DEPARTMENT Regraded Unclassified 102 February 2, 1944 10:09 a.m. HMJr: Good morning. Leo Crowley: Good moraing. Say, I was going to call you this morning before you called me HMJr: Yeah. C: and I -- we want to talk to you about that Lend-lease stuff and I'm going to try, if I possibly can, to change 8 luncheon date that I have with the Brazilian Ambassador HMJr: Yeah. C: to tomorrow, and if not, I'll come over for a little while anyhow. HMJr: Well, I'd appreciate it because I'm going away in a day or SQ and I -- this is amongst my "unfinished business". C: Fine and dandy. Well, I'll be over for a while anyhow. HMJr: Well, will you C: But I'll try and postpone the lunch so I can stay all through 1t. HMJr: Well, that will be fine. C: Because I've got a lot of things I want to talk to you about anyhow. HMJr: Well, then I can count on Cox and Currie? C: That's right. And myself. HMJr: And yourself? C: That's right. HMJr: That's very kind. C: Thanks. HMJr: Thank you. Regraded Unclassified 103 February 2, 1944 10:15 a.m. General Watson: Hello. HMJr: Yes. W: Say, Henry. HMJr: Yes. W: The President said that he'd have to postpone that until tomorrow. MMJr: Oh, gee! W: He cut off five people, including Ickes, for lunch, who has been trying to get in here for two weeks. HMJr: Yeah. W: And I don't think he's really feeling like working yet myself. HMJr: Yeah. W: He's got every damn minute up to lunch. HMJr: Yes. W: And -- but he says, "Tomorrow -- no -- Thursday," he's got. HMJr: What? W: He says, "No, not today. If I had you down HMJr: Yeah. W: for the first and he says, "No, Thursday," and McCloy and Ickes and one other. HMJr: Uh huh. W: But it's tomorrow. HMJr: I see. W: I'll give you the first one tomorrow. Regraded Unclassified 104 - 2 - HMJr: You don't know whether it will be bedside or not? W: No, I think probably it will be the first one -- too much family there for the bedside, I think. HMJr: I see. W: I don't know. I think Mrs. Roosevelt and Anna and all those people go in. HMJr: Uh huh. But it will be the first one tomorrow. W: I'll give you the first one. I'll take it on myself to do that. HMJr: Oh. Okay. I'm disappointed but W: Yes. HMJr: .... there's nothing I can do. W: Well, I -- nothing I could do about it either. I gave you the -- I gave him the first talk for you. HMJr: Yeah. Okay. W: All right. HMJr: Thank you. Regraded Unclassified 105 February 2, 1944 I spoke this morning to Stettinius and told him that I had taken Pehle over for lunch with Mr. Stimson and Mr. Stimson said that if, when I asked Stimson whether if the President was unable to get Frank Graham would he be willing to give Pehle a trial, and Stimson said, "Yes". But I said that he would have to clear everything personally with Stettinius. And I said wouldn't Stettinius be willing to go along? He at first hesitated and said that he thought the President wanted some important figure. So I said, "What are the Cabinet Members there for?" And he said, "That's right." So he said, "Well, I'm willing to go along." But he was just a little hesitant about it. Regraded Unclassified 106 February 2, 1944 10:45 a.m. JEWISH EVACUATION Present: Mr. Pehle Mrs. Klotz H.M.JR: Now you had better explain to me - where does this organization-- MR. PEHLE: This is the people who are very closely connected with the J.D.C. H.M.JR: Why did they do it separately from J.D.C. - say they are appealing for funds? I thought the J.D.C. is just appealing for four million dollars. MR. PEHLE: This is all tied right in with that. This is the United Jewish Appeal. H.M.JR: Doesn't say 80. MR. PEHLE: It is signed United Jewish Appeal for Refugees Overseas Needs. Most of their money, as I understand, goes to the J.D.C., but it is all one thing like the Community Fund. H.M.JR: But is the J.D.C. part of the Jewish Appeal? MR. PEHLE: That is what I understand. H.M.JR: (Refers to attached telegram of February 2, 1944) Oh, yes. What are they going to do? Regraded Unclassified 107 - 2 - MR. PEHIE: I guess they want to talk with the three Secretaries. It shows a need of the Executive Director, because you can't have those people together to talk to every organization. We are having a flow of them in here. H.M.JR: You see, this is a bad piece of business. I mean, Stimson won't know what to do, Hull won't know what to do. MR. PEHLE: I was thinking, if you called them up and have them come over and you will see them - they may misunderstand, you see. I think they will refer them over here. H.M.JR: Well, Rabbi Jonah B. Wise is National Chair- man. Why dn't I call him on the phone and tell him if he would keep his shirt on, I think we will be able - what? MR. PEHLE: That is what I would do. (The Secretary places a call to Rabbi Jonah B. Wise) MR. PEHLE: That is the initial order on the press release that came out of the White House. H.M.JR: Let me just see which of these I know and which I don't. (Refers to attached memorandum entitled "Accomplishments to Date," dated February 2, 1944) (Reading) "1. We have worked out with the world Jewish Congress a program to evacuate refugees from France into Spain, Switzerland and North Africa and from Rumania. Appropriate licenses have been granted author- izing the necessary operations." Do I know about this number one thing? Is that the ship? MR. PEHLE: The number one thing was originated before the War Refugee Board. That is the initial case in which the World Jewish Congress started. Regraded Unclassified 108 - 3 - H.M.JR: Where do I look for reference on that? MR. PEHLE: I haven't ot those all documented. H.M.JR: But you can? MR. PEHLE: I can document them. H.M.JR: Couldn't that be number one? MR. PEHLE: There will be an awful lot of paper. H.M.JR: In case he asks me. MR. PEHLE: Sure. I will give you a documentation on each one: H.M.JR: So if he says, "What is this?" I can refer to it. MR. PEHLE: 1 will give you documentation of each one. H.M.JR: Now, this one about this Schulman, that is quite recent, too, isn't it? You haven't got that documented. MR. PEHLE: No, I haven't. Do you want the cables, or just a fuller statement? H.M.JR: What I would like to have is a fuller state- ment with the cables back of it. So I could turn to number two and then have the thing, you see, with the cables back of it. MR. PEHLE: Yes, sir. H.M.JR: Now, number ten - "At our suggestion, the Department of State" - I just wonder whether I would say, "At our suggestion." MR. PEHLE: On the cable? Regraded Unclassified 109 - 4 - H.M.JR: Why not just say, "The Department of State has--" you know, it is like the one with Stettinius. MR. PEHLE: Yes,sir. H.M.JR: "The Department of State has sent" I would say. Don't you agree? MRS. KLOTZ: That is right. H.M.JR: Again, number eleven, "We have furnished the War Department" - I would say, "The War Department has sent." MR. PEHLE: I don't know if they have sent them yet. We furnished them at their suggestion. I don't see any objection to that. H.M.JR: All right. You never told me about your meeting with Lehman. MR. PEHLE: No, I didn't. Do you want me to tell you now? H.M.JR: Yes. MR. PEHLE: We had a long, very friendly talk. I think he was satisfied. (The Secretary held a telephone conversation with Dr. Jonah B. Wise, as follows:) Regraded Unclassified 110 February 2, 1944 11:13 a.m. HMJr: Dr. Wise? Jonah Wise: Yes. HMJr: Is this Dr. Jonah Wise? W: Yes. HMJr: Henry Morgenthau, Jr. W: Yes, sir. HMJr: I got your cable, Dr. Wise, and I -- my call is in response to that. W: Yeah. HMJr: I take it you are Chairman of this United Jewish Appeal? V: Yeah. HMJr: Well, now, Dr. Wise, the trouble 18 we're sort of hopeful that any day the President will appoint a Director. W: Yes. HMJr: And I doubt very much if we can get this Board together to meet with your people. W: Yeah. HMJr: Wouldn't it be agreeable if you could meet with the Director? W: Why, I think that would be the better thing to do. He will probably have very great authority--delegated authority. HMJr: That's right. I -- I think so because, while Mr. Stimson is very sympathetic, he has expressed a hope that he will not have to give it too much time, personally, you see? And in the case of Mr. Hull, he's sort of leaving it to Mr. Stettinius. W: Yeah. Regraded Unclassified 111 - 2 - HMJr: I question the wisdom and I thought I could talk to you frankly in asking W: Hello? HMJr: .... to convene this Board to meet with your people but if you weren't too insistent and you could meet with the Director and get a satisfactory result, wouldn't that be all you desire? W: Well, I'll have to speak to -- you know Bill Rosenwald is on this. HMJr: Yes. W: One of the Chairmen. HMJr: Hello? W: Bill Rosenwald is one of the Chairmen. Supposing I speak to Bill about it. HMJr: Yes. W: Then we can communicate with you, but I would be of the opinion that your suggestion 1s a good one. HMJr: This is not a run around. This is to get results. W: Yeah. You think that would get the results better and more promptly? HMJr: I think so, and if it didn't work, then you could always go to the Board. W: But you don't think HMJr: Hello? W: I say, you doubt your ability to get them together just for a meeting? HMJr: Well, it could be done, but I doubt the wisdom of it in the first instance. W: Yes. Very well, I'll be thinking about it and I'll communicate with Mr. Rosenwald. HMJr: Will you do that? Regraded Unclassified 112 - 3 - W: You're not speaking to him are you? HMJr: No, I just called you. W: All right, thanks. I'll speak to him. HMJr: Right. W: Thanks a lot. HMJr: Thank you. 113 - 5 - MR. PEHLE: You are very gentle with him. H.M.JR: Gentle? Why not? MR. PEHLE: I didn't say why not. I thought you were very gentle. H.M.JR: Why shouldn't I be? MR. PEHLE: I think you have to be very firm, be- cause there are so many of them pushing all the time. I mean, if one saw the Board they will all want to see the Board. MRS. KLOTZ: The Board will have to sit forever. H.M.JR: I wasn't thinking of that. I feel very gentle! MR. PEHLE: So I talked to Lehman alone. He had no one else in there. He was very friendly. He didn't seem to have any real suspicions that somebody was trying to cut in on his job. And I went out of my way to allay any possibility that he would have such suspicions, and told him that as I saw it, the Board was not being an operating agency in these camps, and so forth. Of course the Board would want UNRRA to do it. He said that all the facilities of UNRRA were at the disposition of the Board. He made arrangements so that some of my people are already working with some of the UNRRA people, particularly on that camp at Casa Blanca. But I gave him pretty much the full story of how this thing had developed and how it had come about. H.M.JR: How much did you give him? MR. PEHLE: I held back some, but I followed out the thing that you told him over the phone, which was that I would tell him everything that you knew about it. Regraded Unclassified 114 - 6 - H.M.JR: Did you tell him about all that stuff at the White House? MR. PEHLE: No, very generally. H.M.JR: He is evidently satisfied, because he hasn't called me back. MR. PEHLE: Yes, I think he is all right. Now the bill is through. H.M.JR: Did the President sign it? MR. PEHLE: Sure. H.M.JR: He did? MR. PEHLE: It was signed and I just located it yesterday afternoon. H.M.JR: That is something. That is for the general expenses? MR. PEHLE: Very broad language, it can be used for anything. (Mr. Pehle hands the Secretary the attached Allocation No. 44-58 from the President, dated January 29, 1944) H.M.JR: This is amazing. MR. PEHLE: Fifty percent of that is out of the confidential portion of the Fund. Those don't have to be accounted for at all, just a receipt. H.M.JR: Now let's just see - that last number seventeen is new, isn't it? (Refers to memorandum) MR. PEHLE: Yes. H.M.JR: Could I keep this? (Refers to notebook of exhibits.) Regraded Unclassified 115 - Y - MR. PEHLE: I would rather keep working on it. May I show you a couple of other things that are in there? (Points out various important items to the Secretary) H.M.JR: How can I locate that? Where does it say "Unitarian"? (Mr. Pehle. points to index) MR. PEHLE: Now, here is the letter on the hundred thousand dollars, press release on that ten-dollar con- tribution. These are telegrams to the Treasury people - instructions to War. We will document every item. H.M.JR: Now, the most important thing is when it comes to names. That is what I want. Just make this a little simpler, you see? This is all right if you just underline this, you see? I want to show him he has big names, you see. You leave this with me for a little while, will you, please? MR. PEHLE: Yes, sir. Do you want the whole book? H.M.JR: Yes, just leave this. I will get it back to you. MR. PEHLE: Yes. The next item is some of the clippings and a very good editorial. Yes, that is all right, if you will get it back. Let me just mention one thing. The State Department had a hearing at Budget for five million dollar appropria- tion. H.M.JR: For what? Regraded Unclassified 116 - 8 - MR. PEHLE: For stuff that is tied all in with this. Budget promptly told them that they didn't understand the relationship between this and the Refugee Board, got in touch with me, and State is all concerned about it. State, on January 28, after the Board was established, sent a letter to Budget asking for five million dollars for the Intra-Governmental Committee, and everything, not consulting the Refugee Board at all. H.M.JR: Have you told this to Stettinius? MR. PEHLE: No, but I am going to. H.M.JR: Will you deal with Stettinius? We will do it this way, we can't bother Stettinius too much, you see - he was a little bit, this morning - you know-- MR. PEHLE: Did you talk to him this morning? H.M.JR: Yes, but - well, he still was for a name. I convinced him if I couldn't get the one, it was all right for you. I felt his feeling was, "God, this is getting to be a nuisance." MR. PEHLE: Pushing him a little bit too much? H.M.JR: Yes, a little. You know Stimson said yesterday it was all right if I would stay back of you. MR. PEHLE: Yes. H.M.JR: Which I thought was interesting. I would try not to bother Stettinius more than once a day, but this thing on Budget I would get to him. Then, if you don't get any results, I will back you up. MR. PEHLE: That is the thing in hand, now. Regraded UInclassified 117 - 9 - H.M.JR: Who tried to pull that? MR. PEHLE: Probably Travers or one of those people. H.M.JR: Who is Travers? MR. PEHLE: Head of the Visa Division. H.M.JR: Now, Billy Riegelman when he was here said they still were. going to go ahead, he thought, with this Inter-State Department Committee on refugees. MR. PEHLE: Intra-State. H.M.JR: Intra-- MR. PEHLE: That is all right. I don't think we can object to that. Finis? H.M.JR: Yes. Regraded Unclassified P H 118 T R SUP LG SER E A ZG NEWYORK NY FEB 1 1944 628P S 1944 FEB 2 AM 8 30 U THE HONORABLE HENRY MORGENTHAU JR R SECRETARY OF THE TREASURY Y AS THE THREE NATIONAL CHAIRMAN OF THE UNITED JEWISH APPEAL FOR T E REFUGEES OVERSEAS NEEDS AND PALESTINE, LARGEST FUND RAISING L E AGENCY THROUGH WHICH AMERICAN JEWS PROVIDE FOR THE RELIEF AND G REHABILITATION OF REFUGEES IN EUROPEAN AND OTHER LANDS, R PALESTINE AND OTHER LANDS, PALESTINE AND THE UNITED STATES, P H WE ARE MOST ANXX03 ANXIOUS TO MEET WITH YOU AND YOUR ASSOCIATE MEMBERS FOR THE WAR REFUGEE BOARD IN CONFORMITY WITH THE BOARDS T DESIRE TO ACCEPT THE SERVICES OF PRIVATE ORGANIZATIONS AND R AGENCIES. THE UNITED JEWISH APPEAL FOR REFUGEES, OVERSEAS A S NEEDS AND PALESTINE PROVIDES FUNDS FOR THE PROGRAMS OF THE U AMERICAN JEWISH JOINT DISTRIBUTION COMMITTEE. THE UNITED R Y PALESTINE APPEAL, AND THE NATIONAL REFUGEE SERVICE, WHICH ARE THE MAJOR AGENCIES CONCERNED WITH REFUGEE PROBLEMS IN EUROPE, E L PALESTINE, AND THE UNITED STATES, RESPECTIVELY. WE WOULD E APPRECIATE OPPORTUNITY OF MEETING WITH YOU OR YOUR APPOINTED REPRESENTATIVES AT YOUR EARLIEST CONVENIENCE. IDENTICAL P VESSAGES HAVE BEEN SENT TO THE HONORABLE CORDELL HULL AND H THE HONORABLE HENRY L STIMSON RESPECTFULLY T R UNITED JEWISH APPEAL FOR REFUGEES OVERSEAS NEEDS AND E PALESTINE RABBI JAMES G HELLER MR WILLIAM ROSENWALD A S RABBI JONAH B WISE NATIONAL CHAIRMAN 342 MADSON U R AVENUE NEW YORK CITY. Y 825AM FEB 2. T E Regraded Unclassified Allocation No. 44-58 119 THE WHITE HOUSE Washington JAN 29 1944 My dear Mr. Secretary: By virtue of the authority vested in me by law I hereby allocate from the appropriation entitled "Emergency Fund for the President, National Defense, 1942-44," To Amount War Refugee Board $1,000,000 to be expended by said Board in connection with emergencies affecting the national security and defense for carrying out the functions of the Board as prescribed by Executive Order 9417 of January 22, 1944. The funds hereby allocated shall be available, without regard to Section 3709 of the Revised Statutes (41 U. S. C. 5), for all necessary expenses of the War Refugee Board in carrying out Executive Order 9417, including employment of persons (including aliens) or organizations, by contract or otherwise, in the District of Columbia and elsewhere without regard to the civil service and classification laws; acceptance and utilization of voluntary and uncompensated services; transportation expenses outside the United States without regard to the Standardized Government Travel Regula- tions; actual transportation and other necessary expenses, and not to exceed $10 per diem in lieu of subsistence, of persons serving while away from their permanent homes or regular places of business in an advisory capacity to or employed by the Board without other compensation from the United States; purchase and exchange of law books and books of reference; purchase of or subscription to newspapers and periodicals; purchase of food, clothing, and medical supplies within or outside the United States; cash payments to and for the benefit of victims of war, without the necessity for cash receipts where receipts are not obtainable; purchase, without regard to statutory limitations as to price, maintenance, operation, repair, and hire of motor-propelled or horse-drawn trucks and passenger- carrying vehicles; payment of premiums on fidelity or other bonds for employees or others engaged in carrying out the purposes hereof; advances of monies without regard to Section 3648 of the Revised Statutes (31 U. S. C. 529); exchange of funds without regard to Sec- tion 3651 of the Revised Statutes (31 U. S. C. 543); printing and binding without regard to Section 11 of the Act of March 1, 1919 (44 U. S. C. 111); and the reimbursement of other appropriations Regraded Unclassified 120 - 2 - from which payment may have been made for the purposes hereof: Provided, That not to exceed $500,000 of the funds hereby allocated shall be available for objects of a confidential nature and shall be charged against the limitation for such purposes under said appropriation, and shall be accounted for solely on the certificate of the Executive Director of the Board. Please arrange for the necessary transfer of funds and advise the War Refugee Board accordingly. Sincerely yours, /8/ Franklin D. Roosevelt The Honorable The Secretary of the Treasury Regraded Unclassified 121 February 2, 1944 Accompliahments to date 1. We have worked out with the World Jewish Congress a program to evacuate refugees from France into Spain, Switzerland and North Africa and from Rumania. Appropriate licenses have been granted authorising the necessary operations. 2. We have worked out with the JDC a program to evacuate 5,000 to 6,000 abandoned children from France and to sustain their lives, pending evacuation. Licenses have been granted per- mitting these operations up to & total cost of $600,000 for the next six months. An initial remittance of $200,000 has been sent to the JDC representative in St. Gall, Switzerland, and operations are now under way. While some of these children may be evacuated to Spain, the majority will probably have to be evacuated to Switzerland. Before Switzerland will agree to admit the children, it re- quires receipt of assurances from some other government that the children will be reevacuated after the war. The Treasury is working on a method whereby the necessary assurances can be given by this Government. 3. We have worked out a program to evacuate Jews from Poland to Hungary. The Union of Orthodox Rabbis of the United States and Canada has been authorised to communicate with and to send funds to persons in Hungary who are in a position to assist refugees across the Hungarian borders into Hungary where a Jewish community of over 1,000,000 people is ready to help and absorb the refugees into the Hungarian economy. $100,000 has been sent to Switzerland to cover these opera- tions. With State's approval, direct transfers of free ax- change into enemy or enemy-occupied territory have been authorized for this program, if it is impracticable to obtain the necessary local currency in Switzerland or in Hungary against payment after the war from & blocked account. Thus we have obtained State's approval of a practical and effective method to finance underground operations. 4. We have sent a message to our representative in the Vatioan giving the necessary assurances that funds will be forthcoming for the immediate relief of destitute Jews in Rome. This will enable relief activities on behalf of these Jews to begin at once. Regraded Unclassified 122 - 2 - 5. We worked out the financial details of a program handled by the JDC for the purpose of evacuating refugees from Spain to Palestine. 600 of these refugees have already left Lisbon on the "Nyassa." We are now working on a plan to have the "Nyassa", after it transports these persons to Halfa, Palestine, go to Constansa, Rumania to pick up a group of refugees there. 6. We worked out with the JDC a. program to bring relief to refugees in Transnistria. Funds have been sent by the JDC to the Inter- national Red Cross delegate in Ankara for the purchase of 250 tons of foodstuffs in Turkey, to be distributed among the in- ternees by the International Red Cross. We are presently working on an expansion of this program so às to provide food distributions to internees in Thereisenstadt, Yugoslavia and Greece. 7. We have sent an urgent message to the International Red Cross, Geneva, stating that the War Refugee Board is prepared to see that funds are made available at once to the International Red Cross to provide food and medicines to persecuted groups in German-occupied areas who are denied the facilities avail- able to the rest of the population. 8. We are working with the World Jewish Congress on a program to evacuate Jews from Transnistria to Rumania in order to move them from the path of the retreating German army. It is be- lieved that thousands of Jews can be saved from death in Trans- nistria. In fact, we have just received a report that 6,400 internees, including 400 children, have already been evacuated from Transnistria to Bucharest and that 500 more are expected to be moved in the next few days. In addition, 200 Polish refugees have been moved from Bessarabia to Bucharest. These operations appear to have been handled with the cooperation of the Rumanien Government. 9. $100,000 has been received by the Treasury, as private contri- butions for the work of the War Refugee Board. LO. At our suggestion, the Department of State has sent very strong instructions to our Missions in the four neutrals, London and Turkey, repeated to all other Missions, informing them of the new Board and requesting full cooperation in effecting the policy of the Government as stated by the President. 11. We have furnished the War Department with suggested instructions to the appropriate Theater Commanders asking the latter to dè Regraded Unclassified - 8 - 123 everything possible, consistent with the successful prosecution of the war, to effectuate the Government's policy to take all measures to rescue the victims of enemy persecution. 2. The Secretary of the Treasury has sent messages to the Treasury representatives in London, Stockholm, Ankara, Lisbon, Caire and Algiers asking them to do everything possible to assist their Missions in carrying out the policy of immediate rescue to the victims of enemy persecution. 13. We drafted a cable to London which was sent by the State Depart- ment requesting Ambassador Winant to discuss the situation with the British and suggest to them that they send instructions to their Missions along the same lines as the instructions to our Missions. 14. We have been in touch with the following organizations who are working out specific operations and programs with us: American Friends Service Committee World Jewish Congress American Jewish Joint Distribution Committee American Jewish Conference American Jewish Committee Jewish Labor Committee Unitarian Friends Service Committee Emergency Committee to Save the Jews of Europe Hebrew Sheltering and Immigrant Aid Society One of the problems is to get all the groups, particularly the Jewish groups, to work together and to stop fighting among themselves. We are working with the various groups to this end. 15. We are working with UNRRA on the problem of making use of the Fedhala camp in North Africa which has room for several thousand refugees. 16. We are submitting to the War Department a program for the resous of some 1,500 refugees on the Adriatio Island of Rab. 17. We are working on a propaganda program for submission to OWI. Such a program will envisage shortwaving to Germany and occupied Europe the true facts with regard to the German atrocities and the determination of this Government to punish the perpetrators. "H:JWPehle:1hh 2/2/44 Regraded Unclassified 124 Clippings A Accomplishments B Agenda prepared by State Department and used at first meeting of War Refugee Board. C Executive Order and Press Release D Memorandum re: John W. Pehle E Big names F Allocation of President's Funds G Regraded Unclassified Regraded Unclassified 126 THE WASHINGTON DAILY NEWS Tuesday, January 25, 1944 Rescue the Refugees! May Rarely has the President made a more desirable and popular move than his appointment of the Secretaries of War, State and Treasury as a war refugee board to rescue as many as possible of Hitler's victims. The fact that the Senate Foreign Relations Com- mittee approved unanimously the Gillette-Taft-Baldwin- Rogers proposal for a similar board indicates how far this issue transcends partisan, political or racial consider- ations. The object is purely humanitarian: to save the persecuted minorities who have escaped death but are in peril. Though all minorities properly are covered by the President's order-political as well as racial and reli- glous-the largest number are the Jews. They have been singled out by the Nazis for mass extermination. An estimated two million European Jews already have been wiped out. Perhama Your million remain. They are home- less. Those who are not murdered outright, and who escape destruction by torture, face death by starvation and neglect. The rescue job is difficult but by no means impos- sible, because many are still in the satellite countries. Thus when Sweden offered a temporary haven 6000 Danish Jews promptly got out. This week about 850 are being taken by ship from Portugal and Spain to Palestine, thus making room for others to come into those transit countries. But only an active official agency, backed by money and power, can arrange the intricate international facili- ties to rescue several hundred thousands instead of the few hundreds now escaping. Many can be taken out of France, Hungary, Rumania and Bulgaria to temporary havens, which the board can set up in Portugal, Spain, North Africa, Turkey, Switzerland and Sweden. Palestine probably could care for half a million for the duration of the war If the British government would permit it. This new board must not be allowed to limp along without effective action; like so many earlier efforts, including those of the Bermuda conference and the inter- governmental refugee committee. Time is short. The need is desperate. Regraded Unclassified 127 wash. Post 1/28/44 Roosevelt Moves On Behalf of Jews U.S. Departments Told to Extend Refugee Help An the Associates Press President Roosevelt created a War Refugee Board last night and directed it to attempt the rescue of "the victims of enemy oppression who are in Imminent dangel of death." The board consists of the Secre- taries of State, Treasury and War, who are empowered to appoint a full-time executive director to ad- minister the refugee assistance program. A White House statement said the President's action was de- signed to bring about immediate rescue from the Nazis of "as many as possible of the persecuted mi- norities of Europe-racial, relig- lous or political-all civilian vic- tims of enemy savagery." The White House said that Mr. Roosevelt stressed that it was ur- gent for action to be taken at once "to forestall the plan of the Nazis to exterminate all the Jews and other persecuted minorities In Europe." Decision as to how the goal could be accomplished was left to the board. It could, perhaps, make use of the International Red Cross, neutral diplomatic missions, or even underground movements in occupied lands. Mr. Roosevelt stated, the White House said, that he expected to get the cooperation of all the United Nations and other foreign governments in the program. The State Department was di- rected to appoint special attaches with diplomatic status, on recom- mendation of the board. to be sta- tioned at spots where help might be rendered to war refugees. The board will be charged not only with developing plans for the rescue of oppressed peoples, but also with working out measures for their transportation, mainten- ance and relief and for setting up "havens of temporary refuge." Regraded Unclassified 128 1/23/44 THE NEW YORK TIMES ROOSEVELT SETS UP estimated last year that about 16.- "shall Include, without limitation, gees In the past has been that Ger- 000,000 Europeans had been made the development of plans and pro- many might be able to smuggle grams and the insuguration of ef- out spics and saboteurs along with refugees by Nazi action. fective measures for (a) the res- the bona fide refugena liberated The policy of our Government WARREFUGEEBOARD cue, transportation, maintenance through negotiation. The Presi- toward the refugee problem was and relief of the victims of enemy dent's instruction that "havens stated in the preamble of the oppression, and (b) the establish- temporary refuge" be catablished President's Executive Order, as ment of havens of temporary ref- for refugees was taken to mean, follows: "It is the policy of this Govern- uge for such vietims." however, that they would go to areas where Nazi agents would be Hull, Morgenthau and Stimson ment to take all measures within Diplomatic Status for Aldes of little value to the enemy. its power to rescue the victims of It said also that the State De- Negotiations for the release of Are Directed to Aid Rescue enemy oppression who are in im- partment shall appoint "special at- refugees in areas yet to be lib- minent danger of death and other- tachés with diplomatic status" on erated presumably would be con- of Victims of Axis Rule wise to afford such victims all the recommendations of the board, ducted through the Swiss or other poesible relief and assistance con- and that these shall be "stationed neutral governments. sistent with the successful prose- abroad in places where It in likely It la thought that relief, which cution of the war." that assistance can be rendered to can be supplied through private FOR 'IMMEDIATE' ACTION Cooperating Agencies war refugees." contributions to the board, as we "The board and the State, Treas- A White House statement said as with public funds, probably will that while the President "would ury and War Departments are au- be handled through the Interna look directly to the board for the thorized to accept the services or tional Red Cross. Pre nt Urges Forestalling contributions of any private per- successful execution of this policy, Plan 'to Exterminate All the board, of course, would co- sons, private organizations, State operate fully with the Inter-Gov- agencies or agencies of foreign ernmental Committee, the United governments in carrying out the Jews and Other Minorities' Nations Relief and Rehabilitation purposes of this order," the Presi- Administration and other Inter- dent directed. ested international organizations." or the four American represent- Special to THE New TORS TIMES. More than being an isolated atives to the Anglo-American Con- WASHINGTON, Jan. 22-Presi- American move, the President said ference on Refugee Problems at dent Roosevelt set up by Execu- that he expected to obtain the co- Bermuda last spring, only one tive Order today a War Refugee operation of the United Nations would appear to be available for Board "to take action for the im- and other foreign governments in the position of executive director mediate rescue from the Nazis of carrying out what the White of the board. He is R. Borden House called "this difficult but im- Reams of the State Department, as many M possible of the perse- cuted minorities of Europe, racial, portant task." 40 years old. The others were The President stressed. said the President Harold Willis Dodds of religious or political, all civilian White House statement. "that it Princeton University, Senator Scott victims of enemy savagery.' The board, which la directly re- was urgent that action be taken Lucas and Representative Sol sponsible to the President, is com- at once to forestall the plan of Bloom. prised of Secretary Hull, Secretary the Nazia to exterminate all the Morgenthau and Secretary Stim- Jews and other persecuted minori- son. They will have a full-time time in Europe." The President's order said that executive director. The Foreign Policy Association the functions of the new board Regraded Unclassified 129 The Star, January 23, 1944 President Names Special Board All Agencies Must It shall be the duty of the heads To Rescue European Refugees of all agencies and departments to supply or obtain for the board such information and to extend to the By J. A. FOX. restricted authority to develop plans board such supplies, shipping and President Roosevelt yesterday and Inaugurate "effective measures other specified assistance and facill- created a War Refugee Board and for (a) the rescue, transportation. ties as the board may require in directed It to join with other or- maintenance and relief of the vic- carrying out the provisions of this ganizations of similar purpose to time of enemy oppression, and (b) order," the President directed. "The the establishment of havens of tem- State Department shall appoint ape- speed the rescue and relief of clal attaches with diplomatic status, persecuted minorities in Nazi- porary refuge for such victims." on the recommendation of the board, dominated Europe-"all civilian A white House statement accom- to be stationed abroad in places victims of enemy savagery." panying the order said the Presi- where it is likely that assistance can "It 5 the polley of this Government dent "stressed that It was urgent be rendered to war refugees, the in lake all measures within Its power that action be taken at once to fore- dutles of such attaches to be de- in rescue the vietims of enemy op- stall the plan of the Nazia to ex- fined by the board in consultation pression wivi are in Imminent danger terminate all the Jews and other with the State Department." of deach and otherwise to afford persecuted minorities of Europe" AL a House Foreign Affairs Com- mittee hearing in November, when such victima nill possible relief and There was, however, nothing to In- a resolution was under discussion to asistance consistent with the suc- dicate the manner in which the authorize Mr. Roosevelt to create a Imfül prosecution of the war," the problem may be attacked commission to work out a plan for President said in the order setting The board was directed to seek saving the Jewish people of Europe IP the board. which consists of the the co-operation of foreign govern- from extermination, Breckenridge coretaries of War, State and the menta in carrying out the program. Long, Assistant Secretary of State, reasury while the State, War and Treasury said 580,000 refugees from Hitler's The board, to be directly respons- partments were named speci- reign of persecution had found ta the President, is to have un- haven in this country. He added (See REFUGEES, Page that "we are ready to take all new retugees who come out of France fically as the agencies which will or out of other occupied territory. Spain will assist them." execute it. Mr. Long said that inadequate The order also provides that "the transportation Is the main barrier services or contributions of any to further movement of these peo- private persons, private organiza- ples, and that immigration quotas Hons, State agencies or agencies of have not been filled. The American foreign governments" may be BC- and British governments are shar- cepted to facilitate the program. It ing equally the cost of this aid. added: The House Committee has never "The board shall co-operate with acted on the resolution. all existing and future international The Anglo-American refugee con- ference in Bermuda last spring was organizations concerned with the understood to have been convinced problems of refugee rescue, main- that a large-scale movement of op- tenance, transportation. relief, re- pressed peoples from Europe was habilitation and resettlement." ast of the question both because No Illint of Financing Plan. the transportation problem and Ce The White House statement sald Repossibility of negotiating with enemy that "the board, of course would CO- operate fully with the Intergovern- mental Committee (which was the outgrowth of the International Ref- ugee Conference held at Evian, France, In 1938), the United Nations Rellef and Rehabilitation Admin- istration and other interested inter- national organizations." Neither the statement, nor the order creating the board, unvo any hint of the extent of Government financing which might be required for the new setup, nor was there any reference to a prospective re- quest for IL congressional appropria- tion. While fullest use is to be made of the facilities of the State, Wag and Treasury Departments, the brder also specifies that "within tipe Ilm- its of funds which may be avail- able." the board is to provide for such personnel and services as are "Decessary to discharge Its responsi- billtles." An executive director will be the administrative officer. Regraded Unclassified Washington Post, 1/25/44 130 Call Of Humanity plete extermination of the Jew all over Europe." The new measure is the other step The President has forestalled certain the Iowan had in mind in that It contem- action in Congress in behalf of the threat- plates rescue and hospitality in special ened Jews in Nazi-occupied Europe. He reservation camps in neutral and other ter- has set up a War Refugee Board to attempt ritory. When the new agency sets up the the rescue of "the victims of enemy oppres. centers to which the Jews can escape, there will be that much more encouragement to sion who are in imminent danger of death." the Jews to escape Hiller's tolls. This decision follows the initiative of Sena- We hope the President will also be fore- tor Gillette, whose resolution to the same handed in the matter of feeding the starving effect had already been reported out by the people of occupied Europe. A resolution Foreign Relations Committee, and was on calling upon the administration to facilitate the calendar for Senate debate this week. this humanitarian measure is going through Congress. It should be speeded up, If the similar resolution introduced by Repre- President will not cut short its career by sentatives Will Rogers and Joseph C. Bald- adopting its purpose. There is not the win was on its way through the House. slightest reason any more to bar mercy ships Passage by an overwhelming majority had to Europe. The war will be won by military, been indicated. The Industrious spadework not economic, means, and when this was done by the Emergency Committee to Save realized, the major reason for opposition to the Jewish People in Europe had contributed this act of charity completely disappeared. to this prospect, and the committee is like- We won't say it was wicked to hold out wise entitled to credit for the President's against action. It was simply stupid, an forehanded move. The proponents of the example of how the mind fails to keep pace legislative resolutions, who are drawn im- with the facts. No cost to this country would partially from both parties in Congress, will be involved in authorizing mercy ships to no doubt welcome presidential action with- go to the beleaguered countries. The food, out reservation. Perhaps they would have re- the ships and the personnel will all come phrased the title to exclude the word refu- from neutral countries. After the experi- gees, for, after all, the congressional aim was ence in Greece, where outside aid has saved that steps should be taken before the Jews thousands of lives, there is no further excuse become refugees. But the purpose in estab- for a moment's delay in authorizing aid, lishing the new boards embraces the object Now that the President has anticipated of the resolutions, and that is the main thing. congressional action in behalf of the Jews, The new board will be composed of Sec- he should anticipate congressional action In retaries Hull, Morgenthau and Stimson. An behalf of the children of Europe, for It is executive director will be appointed, and the children who would be benefited most. this, of course, will be the key post, to be NO greater tragedies have been recorded in filled, presumably, by a person of both dis- civilized history than those which are now tinction and energy. He is assured in stirring our Congress. advance of maximum cooperation by the State Department. The department atready has been directed on recommendation of the board to appoint special attaches with dip- Jomatic status, to be stationed in places where sid could be given to war refugees pending the development of permanent plans. Little can be done, of course, to stop the mass killing, which, according to the Archbishop of Canterbury is going on at the rate of 10,000 Jews a day. But, as Senator Gillette has said, the murderer's hand might be stayed if the Big Three were to indicate that their recent statement on atrocities applied equally to the Jew extermination program. It should have been done immediately after Hitler's New Year declaration that "our hole life, our efforts, and our existence must he diverted to only one end: the com- Regraded Unclassified 131 Wash. Star 1/24/44 Morris Praises Naming Of War Refugee Board President Roosevelt's action in naming a. War Refugee Board to forestall further executions of Jews and other subject peoples in Nazi- dominated areas was praised today in a statement by George M. Morris, chairman of the Washington Emer- gency Committee to Save the Jewish People of Europe. This step, the statement said, will serve notice on the Axis satellite nations to halt further deportation of Jews to the death chambers of Poland. "We hope." Mr. Morris sald, "that the board will not lose sight of the necessity of the earliest possible action and will employ every neces- sary measure to make is clear to the Godless Nazis and their satellites that this Government and its people are determined, as the President pointed out, to forestall the plan of the Nazis to exterminate the Jews.' "We welcome the appointment to this board of such eminent Amer- icans as Secretaries Hull, Stimson and Morgenthau, and we are happy to place at their disposal the facil- ities of the Washington Emergency Committee to Save the Jewish People of Europe." Regraded Unclassified 71d 132 The Evening Star JAN 28 1944 Asked to Assist S. Diplomatic Corps In Saving Jews BY the Associated Press. President Roosevélt's newly- created War Refugee Board said last night it had called on all American diplomatic officers to try at once to save Europe's Jews from Nazi terrorism. Composed of Secretary of State Hull, Secretary of the Treasury Morgenthau and Secretary of War Stimson, the board added that other governments would be asked to co- operate in the program outlined by Mr. Roosevelt last Saturday. Specifically, American diplomatic and consular officers were directed to report on existing conditions, in- cluding "information as to the per- mission granted to war refugees to enter each country, the encourage- ment and co-operation given to such entry and the extent to which each country does not co-operate in per- mitting entry. Where refugees are refused entry at frontiers. the facts and reasons for such actions have been requested. "Recommendations as to possible lines of action have been asked with notation of special obstacles which may handicap rescue operations and methods of overcoming such ob- stacles." Representatives of both major political parties joined in the House yesterday in expressing the desire that the United States "use its good offices" In opening the doors of Palestine to refugee European Jews. Representatives Wright, Democrat, of Pennsylvania and Compton. Re- publican. of Connecticut introduced identical resolutions containing this Idga, and both floor leaders, Repre- segtatives McCormack, Democrat of Missachusetts and Martin. Rejub- licin. of Massachusetts, asked hat It be adopted as "the policy of our country in the light of the Njern realities of the presenti hour." Regraded Unclassified 133 The Evening Star IAN 29 1944 To Help the Hunted- Made up of Secrétaries Hull, Mor- genthau and Stimson, the Presi- dent's new War Refugee Board may spell the difference between life and death for thousands of Europeans, especially for the Jews trapped in countries either occupied or domi- nated by the Nazis. As Americans, living in a land free of terror, we may at times feel that there is some- thing unreal about the stories of wholesale atrocities committed un- der Hitler and Himmler. But the terrible truth is that these things have happened and are continuing to happen. The leveling of the Lidices, the mass slaughtering of in- nocent hostages, the systematic program to undermine the birth rate in Poland and elsewhere-all this and worse besides are fearful actu- alities. As far as the Jews are con- cerned, for example, responsible quarters have estimated that as many as 3,000,000 of them have al- ready been murdered by the Nazis, and many more are likely to go the same way unless something is done to save them. The problem Is by no means an easy one, but the War Refugee Board, with the facilities of the State, Treasury and War De- partments at its disposal, is equipped to do at least enough to make the horror less horrible than it is. Through diplomatic pressure and open warnings It can discourage Hitler's satellites from collaborating in the pogroms and persecutions, and It may able to rescue a substantial number of the potential victims by finding shelter for them in neutral countries. In any event, as President Roosevelt has declared in creating it, the board Is a promise to the hunted and oppressed that the United States intends to do everything possible to help them- and "everything possible" is not too much: If we did anything less, we would be falling short of our respon- sibilities as a great Nation rich in the traditions of humanitazianism Regraded Unclassified 718 The New York Times. 134 JAN 30 1944 Roosevelt Board Is Negotialing To Save Refugees From Nazis Epecial te THE the York Times. WASHINGTON, Jan. 29-The "For the purpose of carrying out new War Refugees Board, meeting this policy, the President's Order four days after its establishment a War Refugee Board com- by President Roosevelt, said today posed of the Secretary of State, that negotiations were under way the Secretary of the Treasury. and the Secretary of War. This board with foreign Governments to de- la responsible to the President, termine the extent to which they and to it in assigned the responst- were willing to cooperate in res- bility for carrying out the policy cuing Jews and other victims of above announced. While the board Nazi aggression. is responsible directly for gwing The board made its announce- effect to the policy, it in directed to work with UNRRA, the Inter- ment through the Treasury, pend- Ing the setting up of its own organ- Governmental Committee, and ization, following its first meeting other appropriate intil ational br- held on Wednesday. Secretaries ganirations Hull, Morgenthau and Stimson, "The President madent clear that who comprise the board, were all in dealing with this important and present. difficult problem be expected to Beyond their statement that for- have full cooperation from the eign Governments were being ap- governments of the United Nations proached to ascertain the extent and other foreign governments. to which they were prepared to co- The President emphasized the ur- operate, the board said that all gent necessity of frustrating the United States replomata and con- Nazi design to exterminate Jewish sulsh officers throughout the world and other minority groups in Eu- hard been Instructed " do every- rope. thing possible to effectuate this Wide Cooperation Sought Government's war-refugee policy "Cooperation was directed with as announced by the President, all public agencies and established bearing in mind the urgency of the private organizations in the res- problem." cue areas from those officers who In its announcement of actions are dealing with this problem to taken, the board said that diplo- the end that effective programs matie and consular officers had and measures for relief, rescue, been directed to cooperate "with maintenance, and transportation of all public agencies and established persecuted victims may be devel- private organizations In the rescue oped and carried out. Immediate areas." reports relating to the situation The board said the diplomatic existing in the countries of the re- and consular officers had been re- spective officers have been re- quested to make "Imiliediate re- quested, which should include in- ports concerning conditions exist- formation as to the permission ing in each country with regard to granted to war refugees to enter each country, the encouragement whether refugees would be permit- and cooperation given to Such ted to enter, and, where refugees entry, and the extent to which ach were refused entry at frontiers, ex- country dode not cooperate in per- planations why they were refused. mitting entry. The board's announcement cov- "Recommendations as to possi- ered the following points: ble lines of action have been asked, "All missions were advised that with notation of special obstacles which may handicap rescue opera- instructions had been traped by the tions and methods of overcoming President to the Secretary of such obstacles. Staje, the Secretary of the Treas- "Foreign governments are being ury and the Secretary of War to approached to ascertain the extent endeavor to effect immediately the which they are prepared to cooperate." rescãe and relief of Jews E Europe and of other victime of Nazi terror. Regraded Unclassified 135 The New York Times. FEB 1 - 1944 A BEGINNING OF RESCUE The War Refugee Board created by Prijsident Roosevelt has a difficult task before it, as the executive order points out. The task is to do what can be done, consistent with fighting and win- ning the war, to rescue as many as pos- sible of the persecuted minorities of Europe from Nazi savagery. In this effort Secretaries Hull, Mor- genthau and Stimson will have strong American support. In time the coop- eration of other United Nations and neutral Governments is expected. Mean- while, working with such national, in- ternational and private relief agencies as have already been set up, we have begun the job. What can be done is problematic, total war being the heartless thing that it is. Large-scale aid for Hitler's 16,- 000,000 homeless victims must clearly wait until the conflagration can be con- trolled. To appeal to the Nazis in the name of humanity is futile. While the flames of their hatred still rage in all corners of Europe the rescuers can do little more than carry out the compara- tively few sufferers that can be reached. We may be sure that all measures within the power of this Government will be taken. For a beginning, the stranded people who huddle in terror in the ports now available to our ships can be removed to temporary havens out- side Europe, where they can be fed and clothed. To that extent, at least, the Nazi lust for extermination can be balked while we get on with the prigne and Stanic business of crushing the forces that have brought this hor or upon the world. Regraded Unclassified 136 Herald Tribune 1- 1-29-44 Revolutionary Methods Are Urged to Save Jews Two World Leaders Make Plea in Talk in London From the Herald Tribune Bureau Copyright, 1944, New York Tribune Inc. LONDON, Jan. 28.-Pleading for revolutionary methods for rescuing the European Jewry from Nazi tyranhy, Dr. Nahum Goldmann, and Dr. Arich Tartakower, mem- are States executive that told bers now a of the press War the highest placed committee World conference Refugee in hopes Jewish the in Board. new of here New the Congress United today York, Jews President expression "The creation Roosevelt of the of determination this and board his is ad- an of ministration to organize energetic action to save European Jews," they said. Dr. Goldmann asserted that much that has been done in the past has been neutralized by the routine methods employed. "Only Immediate radical action and revo- lutionary methods can cope with the gigantic task of saving those who have so far survived Nazi ter- ror," he said. Regraded Unclassified 137 Herald Tribune 1- 29- 44 $100,000 Gift Received By War Refugee Board Donated by Hebrew Sheltering and Immigrant Aid Society From the Herald Tribune Buresu WASHINGTON, Jan. 28.-Re- celpt today of a check for $100,000 from the Hebrew Sheltering and Immigrant Aid Society of New York for the War Refugee Board net up last week by President Roosevelt to assist victims of Nazi oppression. was announced to- night by Henry Morgenthau Jr., Secretary of the Treasury. The check. second to be received by the board. which, besides Mr. Morgenthau. consists of the Sec- retaries of War and State, will go a long way toward settlar up tem- porary havens for refugees, he said. The first contribution was $10 from a Jewish refugee couple now settled in the United States. The $100,000 check was signed by Abraham Herman, president of the New York society, who wrote: "We are pleased to send you here- with our check for $100,000 as a contribution toward furthering your efforts to save the victims of enemy oppression and the estab- lishment of havens of temporary refuge for such victims." At the same time Mr. Herman wrote President Roosevelt of the "profound appreciation" of the society for the setting up of the refugee board and said the action "has evoked nation-wide approval and enthusiasm in which we most heartily join." Regraded Unclassified 138 NEW YORK Herald Tribune FEB 1 - 1944 A War Refugee Board By his appointment of a War Refugee Board "to take action for the immediate rescue from the Nazis of as many as 108- sible of the persecuted minorities of Eu- rope," the President silences once and for all enemy propaganda to the effect that the United Nations are not concerned with their fate-not, in particular, with the fate of the Jewish people. For the President expressed the expectation that the board would have the co-operation of all members of the United Nations and other foreign govern- ments. To insure the board adequate powers he appointed to It the Secretaries of the State, Treasury and War Departments and directed that the facilities of those depart- ments be put at Its disposal. It is a difficult task entailing rescue, transportation, maintenance and relief. How many victims can be saved from Ger- many itself no one knows; but organiza- tions in touch with underground groups in occupied Europe are hopeful that many can be rescued from, and perhaps through? the Balkan satellite nations. Once tempolary ;amps have been set up to receive the relp- fees In neutral or Allied nations, the board will co-operate with the Inter-Governmen- tal Refugee Committee and the United Na- tions Relief and Rehabilitation Committee. The President urged immediate concrete action, an urgency dictated "to forestall the plan of the Nazis to exterminate all the Jews and other persecuted minorities in Europe." The American lead in setting up powerful machinery to obtain such action will have wide approval. For growing re- alization of the frightful lengths to which the Hitler regime will carry its philosophy of brutality has made a do-nothing policy more and more untenable. Regraded Unclassified 140 February 2, 1944 Accomplishments to date 1. We have worked out with the World Jewish Congress a program to evacuate refugees from France into Spain, Switzerland and North Africa and from Rumania. Appropriate licenses have been granted authorizing the necessary operations. 2. We have worked out with the JDC 8 program to evacuate 5,000 to 6,000 abandoned children from France and to sustain their lives, pending evacuation. Licenses have been granted per- mitting these operations up to & total cost of $600,000 for the next six months. An initial remittance of $200,000 has been sent to the JDC representative in St. Gall, Switzerland, and operations are now under way. While some of these children may be evacuated to Spain, the majority will probably have to be evacuated to Switzerland. Before Switzerland will agree to admit the children, it re- quires receipt of assurances from some other government that the children will be reevacuated after the war. The Treasury is working on 8. method whereby the necessary assurances can be given by this Government. 3. We have worked out a program to evacuate Jews from Poland to Hungary. The Union of Orthodox Rabbis of the United States and Canada has been authorized to communicate with and to send funds to persons in Hungary who are in a position to assist refugees across the Hungarian borders into Hungary where a Jewish community of over 1,000,000 people is ready to help and absorb the refugees into the Hungarian economy. $100,000 has been sent to Switzerland to cover these opera- tions. With State's approval, direct transfers of free ex- change into enemy or enemy-occupied territory have been authorized for this program, if it is impracticable to obtain the necessary local currency in Switzerland or in Hungary against payment after the war from 8. blocked account. Thus we have obtained State's approval of a practical and effective method to finance underground operations. 4. We have sent a message to our representative in the Vatican giving the necessary assurances that funds will be forthcoming for the immediate relief of destitute Jews in Rome. This will enable relief activities on behalf of these Jews to begin at once. Regraded Unclassified 141 - 2 - 5. The worked out the financial details of & program handled by ti.e JDC for the purpose of evacuating refugees from Spain to Palestine, 600 of these refugees have already left Lisbon on the "Massa." We are now working on a plan to have the "Nyassa", after it transports these persons to Haifa, Palestine, go to Constanza, Rumania to pick up a group of refugees there. S. Tip worked out with the JDC a program to bring relief to refugees in Transnistria. Funds have been sent by the JDC to the Inter- national Red Cross delegate in Ankara for the purchase of 250 tona of foodstuffs in Turkey, to be distributed among the in- lebnees by the International Red Cross. We are presently morking on an expension of this program SO as to provide food distributions to internees in Thereisenstadt, Yugoslavia and Creece, 7. We have sent en urgent message to the International Red Cross, Coneva, stating that the War Refugee Board is prepared to see Phot funds are made available at once to the International Red Cross to provide food and medicines to persecuted groups in German-occupied areas who are denied the facilities avail- chle to the rest of the population. S. No are working with the World Jewish Congress on a program to evacuate Jews from Transnistria to Rumania in order to move them from the path of the retreating German army. It is be- lieved that thousands of Jews can be saved from death in Trans- mistria. In fact, we have just received a report that 6,400 internees, including 400 children, have already been evacuated from Transnistria to Bucharest and that 500 more are expected to be moved in the next few days. In addition, 200 P6lish refugees have been moved from Bessarabia to Bucharest. These sperations appear to have been handled with the cooperation of the Rumanian Government. 8. $100,000 has been received by the Treasury, as private contri- butions for the work of the War Refugee Board. A $10 contribu- tion has also been received. 10. The Department of State has sent very strong instructions to our Missions in the four neutrals, London and Turkey, repeated to all other Missions, informing them of the new Board and requesting full cooperation in effecting the policy of the Government 8.8 stated by the President. Regraded Unclassified 142 - 3 - 11. ::- have furnished the War Department with suggested instructions to the appropriate Theater Commanders asking the latter to do everything possible, consistent with the successful prosecution 12 the WBT, to effectuate the Government's policy to take all mensures to rescue the victims of enemy persecution. 12. The Secretary of the Treasury has sent messages to the Treasury representatives in London, Stockholm, Ankara, Lisbon, Cairo tod Algiers asking them to do everything possible to assist their Missions in carrying out the policy of immediate rescue to the victims of enemy persecution. 18. No drufted a cable to London which was sent by the State Depart- nent requesting Ambassador Winant to discuss the situation with the Dritish and suggest to them that they send instructions to their Missions along the same lines as the instructions to our Missions. 14. lie have been in touch with the following organizations who are working out specific operations and programs with us: American Friends Service Committee World Jewish Congress American Jewish Joint Distribution Committee American Jewish Conference American Jewish Committee Jewish Labor Committee Unitarian Friends Service Committee (letter attached) Emergency Committee to Save the Jews of Europe Hebrew Sheltering and Immigrant Aid Society National Council of Jewish Women One of the problems is to get all the groups, particularly the Jewish groups, to work together and to stop fighting among themselves. We are working with the various groups to this end. 15. The are working with UNRRA on the problem of making use of the Fedhala camp in North Africa which has room for several thousand refugees. 18. Tie are submitting to the War Department a program for the rescue of some 1,500 refugees on the Adriatic Island of Rab. Regraded Unclassified 143 - 4 - 17. To are working on a propaganda program for submission to ONI. Such & program will envisage shortwaving to Germany and occupied Europe the true facts with regard to the German atrocities and the determination of this Government to punish the perpetrators. Regraded Unclassified 144 / the $ 5 the of 145 The World Jewish Congress representatives have been interested for many months in working out a program to evacuate refugees from France and from Rumania. The financial aspects of the program were developed by the Treasury and a license was finally issued on December 18, 1943. In order to permit certain relief operations (sustaining the lives of the refugees pending evacuation) as well as the evacuation operations, and in order to facilitate the acquisition of the necessary local currency under certain specified safeguards, the Treasury issued a new and broader license to the World Jewish Congress in January 1944. Operations in France have already commenced under this license. Regraded Unclassified 1050 74 146 PARAPERASE or TELEGRAM SEXT REC'D JAN 29 1944 FROM: Secretary of state, Washington TO: AMERICAN LEGATION, BERN DATED: January 20, 1944 NUMBER : 197 CONFIDENTIAL Please inform Dr. Riegner of the World Jewish Congress that license number W-2115 has been issued to World Jewish Congress by Treasury Department, the sub- stance of which license reads as follows: (A) Notwithstanding General Ruling Number 11, we hereby authorise your representative in Switzer- land, together with such agents as he may appoint, to communicate by any means which he may deem expe- dient or necessary with persons tn Rumania and France for the purpose of arranging the evacuation to areas of safety of persons in Rumania or France in imminent danger of their lives and to arrange for the safeguarding and sustenance of such persons in- til such evacuation is possible and to pursue any other action which may be appropriate for said pur- poses, including the payment of Rumanian lei or French francs to persons in Rumania or France, as the case may be, who may have provided either goods or services in connection with the above. No auth- orise the following two methods for the purpose of acquiring the necessary French currency for the purpose Regraded Unclassified 147 - 2 - Regraded Unclassified purpose of financing the operations referred to above: (1) Purchase of Rumanian lei or French france in Switzerland, provided your representative is reasonably certain that in the case of Rumanian lei the sellers thereof have held such currency since before October 10, 1940 or, in the case of French franes, have held such currency since before the fall of France, or if ac- quired subsequent to said dates, that the seller has acquired such currency in either case under the cir- cumstances from which the enemy did not benefit, your representative in such cases to consult with the United States Legation in Bern when possible. Sellers of such Rumanian or French currency may be reimbursed in Swies france at the prevailing unoffi- cial rate of exchange in Switserland; (2) Purchase of Rumanian lei in Rumania, or elsewhere, and French francs in France, or elsewhere, provided that reimburse- ment therefor is not made until after the end of the war. Reimbursement to the sellers of such Rumanian or French currency subsequent to the war may be insured by the establishment of & blooked account on your books in the United States or such blooked accounts may be in & bank in the United States or Switzerland provided there shall be no assignment of interest in such blocked account, or any payment from such blocked account, unless the Treasury Department specifically approves in each case. (B) 140 - 3 - (B) The total sums represented by claims established against any blocked account, established in accordance with this license, plus the SUR paid out there- from, shall not exceed 428,000 Swiss franes, or the dollar equivalent thereof, during the six months beginning January 1, 1944. (c) Your representative should fully report to the United States Legation in Bern the financial trans- actions completed pursuant to this license and your representative should insure to whatever extent possible that the sellers of Rumanian or French currency are persons acceptable to the American Legation in Bern. Your representative should be satisfied that any payments made to such persons will not be of benefit to the enemy. (D) Periodic reports with regard to the operations consummated under this license should be filed by your representative with the American Legation in Bern. It is requested that you immediately revoke the license which you issued to Dr. Riegner pursuant to our telegram of December 18, 1943, Number 3168, such revocation being based upon the Treasury's issuance of the foregoing license. We Regraded Unclassified 149 - 4 - To invite your attention to the fact that the license given above removes the differences between the license previously issued to the World Jewish Congress in accordance with our telegram Number 3168 and the license issued to JDC, quoted in our cable of January 5, 1944, Number 39, which differences were pointed out in our telegram of January 5, 1944, Number 40. Furthermore the license given above clarifies the procedure which should be followed by Dr. Riegner in order to acquire Rumanian and French currency to be used in relief and evacuation operations in France and Rumania, Moreover it contains the necessary authorisa- tions for the purposes mentioned in your wire of January 17, 1944, Number 362. It is also requested that you inform Dr. Riegner that consideration will be given to requests for an increase in the total amount of dollars for Swise francs as set forth in paragraph (B) above. These operations have been fully approved by the Treasury and the Department. HULL cc - Messrs. Paul, Gaston, White, Pahle, Luxford, DuBois, B. M. Bernstein, Schmidt, Fox, Eiss Hodel Regraded Unclassified 38 150 PANAVERASE OF THIRDRAM Secretary of State, Washington, D. C. TO: AMERICAN LEGATION, BERN. 26731 December 18, 1943 NUMBER: 3168 Please issue to Dr. Riagner of the world Jewish Congress, the following license. Reference is made to Dern's 7141, November 14, and Department's 2373, September 28, and 2626, October 26, to sern. "Dr. Riegner is hereby authorised to engage in the following transactions notwithstanding General Ruling No. 11: (A) To receive from the American Jewish Congress and/or the world Jewish Congress in the United States, the equivalent of $25,000 in Swice france, and to deposit the same in a bank in Switserland, approved by the United States Legation in Barn, in a blocked account in his name or in the name of the world Jewish Congress, subject to the following provisions: (1) No withdrawals shall be made from such account, without the specific permission of the Treasury Department of the United States. (2) There shall be no assignment or any transaction or dealing by any person, firm or government whatsoever or, in respect of any claim against or interest or expectancy in such blooked account which may arise as & result of the transactions permitted by this license, unless and until specifically permitted by the Treasury Department of the United States. (b) Authorisation is hereby given to 15. Ringner to communicate with any person in ensuy-ecoupied territory, and in any maint as he shall deem necessary, desirable or expedient, in order to accomplish the followings Regraded Unclassified 151 Regraded Unclassified - 2 - (1) To choose, nominate and appoint in Rumania, one or more agents of the world Jewish Congress. (2) To take such action an my be necessary to direct such agent to complete much arrange- ments as say be appropriate and nec seary for the acquisition of Rumanian surrency from per- sons in Rumania, and with such funds 80 acquired, to effectuate the evecuation of persons selected by the said agent from Rumania, by any yeans and to such places or destinations as the agent shall, from time to time, dees possible under the existing conditions. (3) To authorise said agent, provided Dr. Riegmer has received any necessary authorise- tions and directions from the World Jewish Congress or the American Jewish Congress, to agree with any person who furnishes funds pursuant to paragraph (b)(2) of this license, that such person shall be allocated a claim in an amount not exceeding the amount of the funds 50 furnished (computed at the prevailing rate of exchange on the black market in witcer- land), which claim shall be subjected to the provisions in paragraph (A) and (2)(5) of this license. (4) To authorize said agent, provided IF. Riegner has received my necessary authorize- time and directions from the World Jewinh Congress OF the American Jewish Congress, to agree with any person who furnishes services with regard to the evacuation mentioned in paragra (2)(2) hereof, that such person shall be allocated 4 claim against the said blocked account, in such amount as the said agent shall agree upon, provided that such claim shall be subjected to the provisions of para- graph (A) and (D)(5) of this license. (5) Any claim against said blocked account referred to in paragraph (A) hereef shall only be valid if Dr. Ringner or the said Agent of the World Jewish Congress in Mumania shall have certified the same. (c) Authorisation is hereby given to Dr. Riegner to comminicate with any person in enemy-oceupied territory,and in any namer as he shall desc necessary 152 - 3 - desirable or expedient, in order to accomplish the following: (1) To choose, neminate and appoint in France, one or more agents of the World Jewish Congress. (2) To complete any appropriate or necessary arrangements either through said agent or through any other person as be shall select, for the purpose of acquiring French currency from persons either in Switzerland or In France, and with such currency to effectuate the evacus- tion to Switzerland, Spain or North Africa from France of any person whom he shall select whose evacuation is found to be feasible, such ovacus- tion to be accomplished by such means as shall be found practical under the obtaining conditions. (3) Nothrithstanding anything herein contained to the contrary, authorization is hereby given to Dr. Riogner to allow claims against the blocked account established under paragraph (A) of this license to be assigned, provided such claim shall not exceed the value of French currency acquired from persons in Switzerland, and further provided that in consultation with the Legation in Dern of the United States, Dr. Riegner is reasonably certain that the seller of such French currency has held the same since prior to the fall of France, or has acquired sune from dividends or investments in France (or similar transactions) which investments or transactions were not beneficial to the energy, and provided further that such seller of French currency is not in enemy national, as defined in General Buling No. 11. (4) Other than as set forth in paragraph (c)(3) of this license, authorisation is hereby given to Dr. Riegner to effectuate arrangements covering reimbursements to persons furnishing French currency and services, which arrangements shall be the BASE in all respects as those provided in paragraphs (P)(3), (24) and (0-5) herein above, with regard to persons furnishing humanian currency and services. Regraded Unclassified 153 Regraded Unclassified (D) Expenditures for food and clothing necessary to prepare persons who are to be evacuated pursuant to the foregoing. for the journey to be undertaken shall be included in the authorisation herein con- tained. (3) Dr. Riegner, shall, as closely as reasonably possible, supervise any operations engaged in under this license, of periodical reports shall be filed by his with regard thereto with the Legation of the United States in Bera, The possibility that funds ultimately are acquired by persons who have non- nished neither services nor lecal currency shall be reduced to an absolute sinimum in carrying the AP- rangements authorised herewnder into effect, all setion shall be taken to make sure that, until after the termination of the var, foreign exchange is not nade available in emsay or enery-occupied territory. To the best of his aMlity, Dr. Riegner is directed to nake certain that all persons who supply currency are acceptable to the Legation of the United States in Bers, Regraded Unclassified 155 After having received reports of the plight of 5,000 - 6,000 abandoned children in France and the dire need for funds to save their lives, we worked out a program with the JDC, including the necessary licenses, whereby arrangements could be made through the JDC representative in Switzerland to sustain the lives of the children and to work out through underground channels, if necessary, schemes to evacuate the children from France into Spain or Switzerland. Regraded Unclassified 12/30/43 156 21 Copied from original which Mr. Leavitt stated had been handed to him by Mr. Travers today. F.M. DEPARTMENT OF STATE Washington reply refer to dear Mr. Leavitt: I desire to confirm and to give you for your records certain information which has been received from Dr. Donald Lowrie. The condition of the Jews in France becomes progress- ively worse. As an example, in Nice the deportation of more than 5,000 razzias continues. In Marseille and Nimes and Perpigan, hundreds of families have been sent to Drancy. At Toulouse the French militia are collaborat- in with the German police in chasing the Jews and several Jews have been exccuted after every assassination by French partisans. Mass arrests have occurred and many Jewish families have been compelled to abandon apartments [and] given German families from barred districts in Dordogne, Creuse and Haute Vienne. All Jews who were seriously 111 and detained at the St. Louis Hospital, Perpigan, as well as old people, wamen and children residing in centers foreigners (?) social ser- vice have been deported. East-bound transport comprised 1,500 persons from Draney was noted on November 20. The Gestape persecutes Jewish social organisations and UGIF in state dissolution. After Lambert Baurstora, the late General Director, Gaston Kahn and many high employees were transported to Drancy; the Gestapo arrested Zadoe Kahn, the Director of Rothebild's Hospital, Heilbronner, Consistary President with Mr. Moses do Leavitt, The American Joint Distribution Committee, New York, New York. Regraded Unclassified 157 - 2 - with their families and camp commissioner, Sister Cain Corpore. Five social assistants of OSE were lost while attempting to save children at Nice and "Ell" deported. According to the last news received on December 9, the childrens help activities will /Yerm now or7 be con- tinued in unofficled form; homes are in dissolution. It is extimated that private families have received some 6,000 children. It is urgently necessary to save additional 1,500 newly abandoned children, plecing them with fumilies. The local finance organizations have been totally destroyed and Dyka and Maurice are in hiding. In order to facilitate resoue activities, no desire to repeat an carlier request to endeavor to obtain promises of visas for several thousand children hidden. in Prance or refuges Sultserland. Dr. Lewrie suggests that Lisbon should be kept fully informed. The information contained in the above telegrom is not good news but I want you to know that anything the Department can do to assist in rescuing those poor people will be done and as I have nentioned to you verbally, de are continuing our efforts on behalf of the children. Sincerely yours, /a/ Howard he Travers Howard K. Travers Chief, Visa Division CC - Messrs. Paul, White, Pehle, Luxford, Duhois, Schmidt, Fox, Miss Hodel Regraded Unclassified us T/E/-1 (Special) License NO. - 21.06 150 TEACTHY DEPARTMENT breign Funds Control Date: LICENSE JAN 8 1944 =/ (CRANTED UNDER THE AUTHORITY OF EXECUTIVE ORDER NO. 8389 OF APRIL 10, 1940, AS AMERDED, AND THE REGULATIONS ISSUED TRANSUNDER) American Jewish Joint Distribution Condition (Nama of Licenses) 270 Mulison Avenue, New York, N. T. (Address of Licenses) dre: 1. In order to arrange for the avacuation to places of sufety of persons in trance whose lives APR in instruct danger and, penning possible svacuation, to sustain nd safeguard the lives of such persons, your representative in Switzerland (including web agents AS he na appoint) 10 hereby licensed notwithstanding the provisions of eneral Ruling Mo. 11 to communicate with persons in France in any namer be decemb ressary or expedient and to take all other appropriate action, including the payment 0 persons in France of French france for goods and services. The neessary French rane funds to finance such operations may w obtained by either of the following two sthodes (a) The first method is the purchase of French france from persons in Switzerland who your representative, after consulting with the United States Logation in Derm when feasible, is reasonably certain have held such French frenes since prior to the fall of France or have since acquired such france in such manner as has not bunefited the many. The sellers of sush france may be reimbursed therefor in Swine france at the provailing unsfficial rate of exchange in Switserland for French france. (b) The second method 10 the acquisition of French france from persons in France or elsewhere for which reinbursement will not be cade until after the war. In order to insure reimbursement after the war to the persons supplying such france, blocked accounts may be established - your books in the United States, or in a tank in the United States or a bank in Switserland. NO payments may be made from any such blocked account without the specific approval of the Treasury Department and no assignments may be made of any interest in such blooked assount without such approval. 2. The total evacunt of dollars or Swine france paid our or set up in blocked accounts or otherwise chligated under the 10TH of this license shall net expeed 4,300,000 Swine france, or the dollar equivalent thoreof, during the six months' period reginning January 1, 1944. 3. Your representative should keep the Anerican Legation in Switzerland fully informed with respect to the financial transactions effected under this license. In se far AS feasible your representative should make certain that the persons from when the rench france are purchased are acceptable so the Logation. Your representative should hinself that payments to such persons will not benefit the ensy. Regraded Unclassified 152 - 2 - 4. Puriodic reports with regard to any operations engaged in under this license hould be filed with the Treasury Department by your representative through the United tates Legation in Born. 5. This license is granted upon the statements and representations filed with the treasury Department, and is subject to the conditions among others, that you will comply a all respects with Executive Order No. 8389 of April 10, 1940, as amended, and the egulations issued therounder and the terms of this license. 6. This license 18 not transferable, is subject to the provisions of Executive rder No. 8389 of April 10, 1940, as amended, and the regulations issued thereunder and By be revoked, modified, or declared void at any time at the discretion of the scretary of the Treasury acting directly or through the agency through which the icense was issued, or any other agency designated by the Secretary of the Treasury. Table J.W. Pehle Assistant to the Secretary Regraded Unclassified 200 22 160 CABLE TO BERN Please transmit promptly to Saly Mayer, representative of the American Jewish Joint Distribution Committee, St. Gall, Switserland, the following which 18 the text of a license which has been issued by the Treasury Depart- ment to the American Jewish Joint Distribution Committee: (Text of license begins): "1. In order to arrange for the evacuation to places of safety of persons in France whose lives are in imminent danger and, pending possible evacuation, to sustain and safeguard the lives of such persons, your representative in Switserland (including such agents as he may appoint) is hereby licensed notwithstanding the provisions of General Ruling No. 11 to comunicate with persons in France in any manner he deems necessary or expedient and to take all other appropriate action, including the payment to persons in France of French france for goods and services. The necessary French franc funds to finance such operations may be obtained by either of the following two methods: (a) The first method 18 the purchase of French francs from persons in Switzerland who your representative, after consulting with the United States Legation in Bern when feasible, is reasonably certain have held such French france since prior to the fall of France or have since acquired such francs in such manner as has not benefited the enery. The sellers of such france may be reimbursed therefor in Swies france at the prevailing unofficial rate of exchange in Switserland for French France. Regraded Unclassified 161 - 2 - (b) The second method is the acquisition of French france from persons in France or elsewhere for which reimbursement will not be made until after the war. In order to insure reimbursement after the war to the persons supplying such france, blocked accounts may be established on your books in the United States, or in a bank in the United States or a bank in Switzerland. No payments may be made from any such blocked account without the specific approval of the Treasury Department and no assignments may be made of any interest in such blocked account without such approval, 2. The total amount of dollars or Swiss francs paid out or set up in blooked accounts or otherwise obligated under the terms of this license shall not exceed 2,500,000 Swiss francs, or the dol- lar equivalent thereof, during the six months' period beginning January 1, 1944. 3. Your representative should keep the American Legation in Switzerland fully informed with respect to the financial transactions effected under this license. In 80 far as feasible your representative should make certain that the persons from whom the French francs are pur- chased are acceptable to the Legation. Your representative should satisfy himself that payments to such persons will not benefit the enemy. 4. Periodic reports with regard to any operations engaged in under this license should be filed with the Treasury Department by your repre- sentative through the United States Legation in Bern." (End of text of license). Regraded Unclassified 102 - 3 - Please advise Saly Mayer that this license has been lasued by the Treasury Department in order to clarify the procedure to be fol- lowed by him in connection with the seguisition of French france for wee in relief end evacuation operations in France and that the Tree- outy Department will consider requests to incruano the total amount of dollars or Sviss frence specified in paragraph (2) of the license. These operations, BA well 2/1 the operations reforred to in Department's 3168, December 18, 1943, have the approval of the Department and of the Treasury and you should take all reasonable atops to facilitate them. Please promptly report to us the progress being made and any difficultion encountered, particularly in connection with the financial operations involved. Regraded Unclassified 163 January 7th, 1944 Memorandum on the Evacuation of 5,000 Children From France In July and August, 1942, large scale deportations of refuges Jews from France took place. At that time parents were given the choice of either taking their children with them or leaving them in the custody of child care organizations. Many parents chose the latter alternative and as a result thousands of children became & charge upon an organization known as the oss, a medical and child care agency which has been subventionsd by the J.D.C. for many years. Mforts were started immediately, as a result of requests from France, that a 1,000 children be brought out of France to the U.S. The U.S. Committee for the Care of Buro- pean Children vas approached and agreed to sponsor the admission of these children, giving the requisite guarantees for their mintenance and care. The State Department agreed to authorise the issuance of quota visas for the children on the basis of a letter of guarantee sent to the Attorney General by the U.S. Committee. The J.D.O. agreed to 4/9ths of the cost of transportation and mintenance of the children. is the deportations increased in volume there were many more children for whom it vas deened imparative that visas be secured. The matter was again discussed with the State Department and visas for an additional 4,000 children were promised by the State Department under the same conditions as before. In the meantime, during the months of August, September and October, the problem of getting the first group of one thousand children ready for emigration, having them brought to the American Consulates for medical examination, and securing the personal data, was being carried on by representatives of the Qualters and JDC in France. Other organisations keenly interested in the evacuation of the children included the International T.M.G.A. and the local French refuges bodies. Although permission had been secured in principle from the Vichy authorities for exit visas for the children, this was renewed and revoked during the month of October. Finally, as a result of the strong pressure of the American Charge d'Affairs, Mr. Pinkney Tusk, the authorities agreed to let the first 500 children leave the country. The children were all assembled, baggage packed, train travel arranged for the ship chartered for their passage. 1 group of 28 ascorts consistin of pediatricians, child care workers and trained social workers vas assembled to be sent to Lisbon to escort the children to this country. The boat on which the escorts left departed for Lisbon on November 7th, 1942. The American invasion of North Africa on November 7th closed the borders of France with the complete 06- cupation of the so-ealled uneccupied section of France. Despite the efforts of the local French committees to secure exit visas for the children, they were not forthcoming. Donald Lowrie, who was in charge of the International T.M.O.A. working in France, vent to Switzerland and from there undertook to secure the entrance of the children into Svitserland. The Buise authorities took the position that they would have to have the guarantee of a responsible government that the children would be re-evacuated after the war. This request of the Swise Government vsa taken up with the State Department and with the British government. The State Department pointed out that 18 vas impossible for it to give wuch a guarantee to the Svise assified 164 - 2 - government since it meant in effect binding a subsequent administration for the issuance of visas to children who might by the end of the war become adults. It 10 believed that this problem was dismassed at the Berauda Conference on Refugees. The suggestion that arose from the Bermuda Conference was that the Allied Nations join in & declaration to the neutral countries pledging that they would re-admit to their respective countries all refugees who were forced by reason of persecution so leave those countries. It took many months to secure the consent of all the governments concerned to subscribe to such a declaration. The text thereof has not yet been made public. Ye believe that the Swies government vas persuaded to approach the Vichy authorities to ermit the children to leave France by via of Spain. This request of the Ovies government. which was based entirely upon humanitarian grounds, was refused by the French. Nevertheless, Donald Lowrie and representatives of the JDC and other agencies in Switserland have continued to press the Svies government to make a second demarche to the effect that Switzerland herself would be prepared to give asylum to the children. Switzerland has continued to request the formal guarantee of re-svacuation. On November 11th, 1943. the Colonial Secretary amnounced to the House of Commons that the unused portion of the Palestine certivicates authorised under the White Paper, vis. 30,000 immigration certificates, would remain available for use after March, 1944. The Colonial Secretary stated that due to the war, t1 was not possible to fill the quota under the White Paper and therefore the life of these certificates would be prolonged indefinitely. On the basis of this announcement the JDC approached the State Department and asked whether there was any objection to our going to the British Embassy requesting that the British government set aside sufficient Palestine certificates to assure the evacuation from Switserland of the children after the war. In this matter & requisite guarantee could be given to Switzerland. The State Department interposed no objection whatsoever to such a proposal and this to the British Rebasay on November 23rd, 1943. Mr. Hayter of the British Robasty agreed to transmit this suggestion to the Foreign Office in London. Subsequently, we were advised that the State Department had associated itwelf with this request and had likewise communicated with the Foreign Office to have such certificates set aside for these children. On January 3rd, 1944 (letter dated Dec. 31, 1943) the JDC received a letter from Mr. Hayter, copy attached hereto, pointing out that the Palestine government would find difficulty in reserving such certificates until after the war and expressing the hope that the general assurance given to the neutral states about the eventual repatriation of refugees night be sufficient to meet the requirement of the Swiss government. The JDC replied as per copy attached. On December 28th, 1943, the JDC vali asked by the State Department whether the guarantee which had been given by the U.S. Committee for the maintenance of 5,000 children in this country VS.B still valid and whether reaffirmation of this guarantee would be given. Such a reaffirmation vali agreed to by the U.S. Committee and a letter sent to the Attorney General confirming the readiness of the Committee to provided for 5,000 children in the event they were admitted to the U.S. The JDC agreed to underwrite approximately $2,000,000 of the estimated cost of some 4-41/2 million dollars which the guarantee entailed. On the basis of this reaffirmation, the State Department notified the British government that 11 stood ready and renewed Regraded Unclassified IPS - 3 - offer to take 5,000 children under the original plan which it had approved in ce 1942. The whole question of the guarantee and of the children was to have een etober, discussed at the meeting of the Intergovernmental Committed on January 4th. 1944. at the outcome of that meeting 10 not yet known to us. le have recently been redeiving urgent cables from Switserland requesting that he necessary guarantee be given to the Swiss government. Such a guarantee can nly be given by a resonsible government since no private Agency would be in a position jo assure the Swiss authorities that it would be able to move the children out of witzerland when the war is overl It 10 of interest to record that during the period when the plight of these children as sade known in the Fall of 1942 other countries came forward to guarantee asylum 10 the children. For example, Canada stated it would take 1,000; Argentina agreed jo take 1,000; several other South American countries agreed to take smaller numbers. The President of the Dominican Republic offered to take 3,500. At one time, counting certificates available to the Madassan, that there were 20,000 visas available for the children, although the top number of children who could be evacuated vas probably lot more than half that number. is should finally be recorded that about 120 children from Spain and Portugal were brought to the U.S. under the guarantee of the U.S. Committee. lestrictions as to the children were set up: children of enemy nationality had to be less than 14 years of age: children of Allied nationalities had to be less than years of age. There vas no minimum limit on the age of the children. La of the date that this memorandum is being dictated, it is unkown whether the requisite guarantees have been or will be given to Switzerland 80 that she could sake the necessary approach to the French authorities to permit the children to leave bither via Spain, from which they could emigrate to the U.S., or to enter Switserland for the duration. At the present time, children are being deported from France and there is a relent- Less hunt being conducted by the Gestapo to locate the children hidden in private homes in order to intern them into concentration camp# in preparation for their leportation eastward. Moses A. Leavitt MALIJO 00 - Mesers. Paul, White, Pehle, Luxford, DuBois, Fox, Schmids, Miss Hodel Regraded Unclassified Regraded Unclassified 167 The Union of Orthodox Rabbis of the United States one : uada received information that large numbers of Jewn remain hidden in the forests on the borders of several Puropean countries, living under the most ex- (rede conditions and falling easy prey to hunger and Tisease, and that active efforts to rescue such Jews could be made provided the necessary funds were made available. The Union approached State and Treasury for proper authorization to undertake the necessary trans- actions. Accordingly, we worked out with State's approval RR appropriate license providing a practical and effective method to finance underground operations, i.e., direct transfers of free exchange into enemy or enemy-occupied territory when other methods of financing are impracticable, Regraded Unclassified 168 PARAPHRASE OF TELEGRAM SENT REC'D JAN 29 1944 FROM: Secretary of State, Washington TO: AMERICAN LEGATION, Born DATED: January 22, 1944, 9 Pollo NUMBER: 229 CONFINENTIAL The Union of Orthodox Rabbis of the United States and Canada, hereinafter referred to as the Union, has been issued a license by the Treasury Department, the substance of which license is given below, It is requested that the substance of the following message be transmitted urgently to the Union's representative, Dr. Isaac Sternbuch whose address is St. Gall, Switserland: A. Notwithstanding General Ruling No. 11, we hereby authorise your representative in Switser- land, together with such agents as be may appoint, to communicate by any seans which he may deem expedient or necessary with persons in enemy territory or territory occupied by the enemy for the purpose of carranging the evacuation to such areas of safety or relative safety as may be selected by such representative, of persons in such territory in imminent danger of their lives and to arrange for the safeguarding and sustenance of such persons until such evacuation is possible and to pursus any other action which my Regraded Unclassified 169 - 2 - Regraded Unclassified may be appropriate for said purposes, including the payment of funds to persons in enemy or enemy occu- pied territory who may have provided either goods or services in connection with the above. We authorise the following three methods for the purpose of obtain- ing the necessary local currency for the purposes of financing the operations referred to above, provided that method three should not be used if it is feasible to use either method one or two to obtain the local currency. (1) The purchase in Switserland of the exchange or currency of the country in which the operations are to take place provided that your representative feels reasonably certain that such currency has been held by the sellers since before the date as of which the United States Government frose such country or, if acquired subsequently thereto, that the seller has acquired such currency under the circumstances which were not beneficial to the enemy, your representative in such case to consult when possible with the American Legation in Bern. Sellers of such local currency or exchange may be reimbursed in Briss francs at the prevailing unofficial rate of exchange in Switserland, (2) The purchase in enemy or enemy occupied territory of the local currency 170 - 3 - or exchange of the country in which the operations are to be effected provided that reimbursement there- fore is not to be made until after the war, Reimburse- ment to the sellers of such local currency or exchange subsequent to the war may be insured through the establishment on your books in the United States of blooked accounts in a. Switzerland or United States bank, provided that there shall be no assignment of any interest in such blocked account or any payment from such blocked account unless the Treasury Depart- ment specifically approves in each case, (3) The purchase in enemy or enemy occupied territory of the necessary local funds, exchange, services or goods, reimbursement therefore to be made in three currency notes or foreign exchange provided your representative shall take such reasonable steps as my be pessible to prevent such foreign exchange or free currency notes being acquired by persons who may provide the same to the enemy. B. Total sume represented by claims established against any blocked account established in accordance with this license, plus the sums paid out therefrom, shall net exceed 430,000 Swies francs or the dollar equivalent thereof during the six months beginiting January 1, 1944. Regraded Unclassified 171 - 4 - C. Your representative should fully report to the American Legation in Born the financial trans- actions completed pursuant to this license and your representative should insure to whatever extent possible that the sallers of local exchange or currency are persons acceptable to the American Legation in Bern, Your representative should be satisfied in so far as possible that any payments made to such persons will not be of benefit to the enemy. Do Periodic reports with regard to the operations consummated under this license should be filed with the American Legation in Bern by your representative." It is requested that you inform Mr. Sternbuch that, unless he is advised to the contrary by the Union, his authority in connection with the foregoing is to be exercised in collaboration with Mr. David Rubenfeld and Mr. Rosenbaum, You should also inform Mr. Sternbuch that this license has been issued as a result of advice that substantial numbers of Jews are now hiding in forests bordering several European countries, in particular Poland and Hungary, where living conditions are most extreme and where they are very subject to hunger and disease. The are further informed that active endeavors can be undertaken to resous these people, the evacuation from Poland to Hungary being Regraded Unclassified - 5 - being specifically contemplated, provided the necessary funds are made available. These operations have been approved by the Treasury and the Department, and it is requested that you take such reasonable steps as may be necessary to facilitate carrying them into effect. Your attention is called to clause 3 of paragraph (a) of the license under which we specifically authorise direct transfers of free foreign exchange into enemy or enemy occupied territory, if the other two methods of financing the program prove impracticable, It is requested that you report promptly to the Department with respect to any difficulties which may be encountered (particilarly in connection with the financial operations). In indication as to what progress has been made should also be included in your report. HULL 00 - - Messrs. Paul, Gaston, White, Pehls, Luxford, DuBois, E. M. Bernsted Mr. Schmidt, Mr. Fox, Miss Hodel Regraded Unclassified 610 the MMA and 956 LOS 355 and 174 Through London and Bern, word was received from our representative in the Vatican to the effect that the funds of charitable Italians in Rome who have been working on whalf of the Jews, especially the children of those whom the Germans had seized and deported, were very low and that considerable funds were urgently needed. It was suggested that local borrowing might be negotiated if assurances were sent that funds would be forthcoming. The American Jewish Joint Distribution Committee was approached here and 8. message was sent to our Vatican representative to the effect that the American Jewish Joint Distribution Committee is willing to provide up to $20,000 at the present time and to consider reasonable additional amounts if needed. Regraded Unclassified 175 PARAPHRASE OF TELEGRAM SENT FROM: Secretary of State, Washington TO: AMERICAN LEGATION, BERN, (SWITZERLAND). DATED: January 7, 1944 NUMBER: 55 CONFIDENTIAL The contents of your telegram of December 28, 1943, no. 8182, in which you transmitted a cable from Tittman dated December 21, no. 2244, has been given consideration by Treasury and the Department. London's telegram of December 28, 1943, no. 9021, also relates to this mat- ter. Given below is the substance of that message: On December 22 a letter was addressed to the Embassy by the Director of the Inter-Governmental Committee on Refugees, suggesting that the Depart- ment might deem advisable an approach to the refu- gee organizations in the United States in respect to the following: The Foreign Office has just informed us that the British Minister to the Vatican has advised that charitable Italians in Rome who have been engaging in activities for the benefit of the Jews (especially the children of parents who have probably been deported to Germany and who have been Regraded Unclassified 176 been definitely seized by the Germans) are now find- ing that they have nearly exhausted their funds and this is hampering and may require discontinuance of this work. The Foreign Office further informs us that the matter is being discussed with the British Treas- ury to determine whether funds for this purpose can be permitted to be transmitted to the account of the British Minister to the Vatican. The Foreign Office requests information from us as to whether we would give consideration to an approach to the Jewish char- itable organizations in London to ascertain whether they would make a contribution. Therefore, we have conditionally posed this question to the following organizations in London: the World Jewish Congress, the Central Counsel for Jewish Refugees, and the Board of Deputies of British Jews. Moreover, we wonder whether the State Depart- ment might not be advised so that it might consider the advisability of approaching the American Jewish Joint Distribution Committee or some other organi- sation in the United States provided, of course, that the Treasury would pormit the transmission of funds for the purposes outlined. Given Regraded Unclassified 177 Given below is the substance of our telegram to London dated January 4, 1944, no. 52, replying to the cable from London quoted above: with reference to your telegram of December 28, 1943, no. 9021, concerning the transmission of funds for relief work for the Jews in Italy as the Inter- Governmental Committee on Refugees suggested, you are informed that the American Jewish Joint Distri- bution Committee has been approached and is will- ing to provide at this time up to $20,000 and to give consideration to reasonable additional sums as they are needed. There is willingness on the part of the Treasury to license the transmittal of the funds, and we request you to report at once as to whether such transmission of funds should be through London, in which case the name of the reci- pient in London should be stated. It is also requested that you report with respect to the iden- tity of the organization in Rome who will receive the funds 80 that further remittances can be trans- mitted directly if they are necessary. The message given below is for Tittman, and it is requested that you transmit it to him in addition to the foregoing Regraded Unclassified 178 foregoing information: with reference to your telegram of December 21, 1943, no. 224, it has been agreed by Treasury and the Department that funds up to $20,000 for the operations which you mentioned will be fortheoming in the future and that you may give the necessary assurances in this regard. Please inform us if additional funds are needed. Bern has been requested to repeat to you the substance of London's tele- gram dated December 28, 1943, no. 9021, relating to the saze matter, and our telegram of January 4, 1944, no. 52, which is in reply to London's cable. HULL cc - Messrs. White, Pehle, Schmidt, Fox, Luxford, Dubois, Miss Hodel Regraded Unclassified 179 PARAPHRASE OF TALEGRAP received PROVI ASSERICAN ELECATION, BARK TO: Secretary of State, Washington December 23, 1943 STREET: 8182 CONFIDENTIAL Following is Tittean's cable of December 21, no. 224. I refer herewith to the cable regarding relief of Jews in Rome which AT British collea Lie sent to London on November 24, 1943, no. 442, for repetition to Washington. to were informed today by the representative of Jens in Rose that considerable funds will be needed urgently et the end of the month. It la suggested by him that if assurances could be Given by Caborne and no either in writing or orally that funds would be fortheoming some- time in the near future from Ingland and the United States, it might 30 possible for him to negotiate a loan locally using our assurances as security. Our reply was that such assurances could not be given without previous authorization, but we agreed to transmit the message and ask that consideration be given to the suggestion because of the special conditions pre- vailing here and likely transfer difficultisa through usual channels. It is requested that you consult London and vable at the earliest possible moment. HARRISON Regraded Unclassified 180 January 4, 1944 MARICA AMNASSY LORDON UG. 52 Treasury Department requests following reply be sent to your 0001, December 25: QUOTE This is with reference to your cable No. 9021, December 20, 1943, concerning suggestion of Interpovern- cental Consittoe on Refugees with regard to funds for relief work on behalf of Jens in Italy. American Jowish Joint Distribution Committee has been approached and is willing to provide up to $20,000 at present time and to consider reasonable additional wasents if needed. United States Treasury is propared to icense transaction and will appreciate pronpt advice LS to whether remittance may be effected through London and if so to whom in London funds should be remitted. Please advise also as to identity of recipient organiza- tions in Rome so that future remittances can DE made direct from United States If desirable. UNQUOTE A-1/8:0LBIMSL VD FD ED Regraded Unclassified 181 at PLAIN London Dated December 28, 1943 Rec'd 4:07 Pello Secretary of State, Washington. 9021, twenty-sighth. Embassy has received from Director, Inter- governmental Committee on Refugees, letter dated December twentysecond containing suggestion that Department may wish approach refuges organizations in United States as follows: "The Foreign Office has just informed us that the British Minister to the Vatican has reported that the funds of charitable Italians in home, who have been working on behalf of the Jews, especially the children of those whom the Sermans have seized and probably deported to Cormany, are very low and in consequence they say not be able to continue with their relief work. The Foreign Office is asking the Treasury whether they will aller funds for this purpose to e paid into the account of the British Minister to the Vatican, and has asked us whether we would consider Regraded Unclassified 182 -2- 99021, twenty-eighth, from London. consider approaching some of the Jewish charitable organizations in this country in case they my be disposed to make - contribution. Le are therefore addressing = conditional enquiry to each of the following organisations in London: World Jewish Congress, Board of Deputies of British Jows, Central Council for Jewish Refugees. In addition it has occurred to us that you night wish to inform the State Department for whatever approach it might deen advisable to make to the American Jewish Joint Distribution Committee or other organizations in the United States, on con- dition that the United States Treasury are willing to allow transmission of funds for this purpose". SINAST WTD Regraded Unclassified the 184 For some time the American Jewish Joint Distribution Committee has been working on the problem of evacuating refugees from Spain to Palestine. Finally, in early January, arrangements were completed for the charter of the Portuguese vessel, "Nyassa," and its safe conduct through the Mediterranean. 600 refugees were permitted to leave Spain and entry for them into Pelestine was arranged. Since the financing of the operations was being handled by the American Jewish Joint Distribution Committee here, we worked out the necessary authoriza- tion so that the ship was able to sail as scheduled on January 22nd. Attached are reports just received concerning the possible use of the "Nyassa" to pick up refugees in Constanza, Rumania. We are presently working on the problem of shipping facilities for this latter group of refugees. Regraded Unclassified 185 Y 25, D. C. eply refer to 40.48 Refugees/5074 My dear Mr. Leavitts Confirming By telephonic conversation with you today, the Department has received a comunication from Mr. Barlas at Ankara stating that he understands that a vessel flying a Portuguese flag which was chartered by the Joint Distribution Committee departed from Lisbon on January 23 carrying some 700 refugees. Mr. Barlas believes that in view of the fact that the printipal difficulty in rescuing more than a limited number from Transnistria is because of the lack of transportation that he suggests that efforts be made to continue the charter of the Portuguese vessel in order that it might proceed from Palestine to Constansa and thus evacuate Jewish refugees from Transnistria. As I stated on the phone, there is some question in my mind as to whether the Portuguese Government would permit the vessel in question to proceed to Constanza but is is possible that you will desire to have Mr. Schwarts investigate at Lisbon. It is believed that the War Refugee Board will be functioning in the near future and if that Board or the Intergovernmental Committee may assist, please do not hesitate to inform m. I an also glad to confirm that no have received information from Turkey to the effect that the Turkish Government will do every- thing it consistently can to protest the Jewish people of Turk origin who find themselves in France. Sincerely yours, Moward K. Travers Chief, Visa Division Mr. Moses A. Leavitt, American Jewish Joint Distribution Comittee, 270 Madison Avenue, You York 16, New York. Regraded Unclassified 186 I 25, D.C. reply refer to 840.48 Refugees/5075 840.48 Refugees/5080 My dear Rabbi Wise: Confirming my telephonic conversation with your secretary this morning, we have received a telegram from Ambassador Steinhardt who states that he has dis- cussed the matter with Mr. Barlas, head of the Jewish Agency in Turkey, who is also, as you know, in charge of the transit of Jews to Palestine from the Balkans. Mr. Barlas states that his principal difficulty is caused by the lack of transportation facilities rather than unwillingness on the part of the Turk authorities to cooperate. The Ambassador states that in his opinion unless transportation facilities are augmented by vessels especially chartered for the purpose, it is most unlikely, due to the existing war conditions, that rail facilities can be materially increased. The Ambassador states that the Turkish authorities have repeatedly assured him of their desire to cooperate but that under existing conditions they cannot increase their rail facilities. I an also very pleased to inform you that from in- formation just received from the Ambassador, the Turk Government will exert itself to the utmost to afford protection to the several thousand Jewish people of Turk origin who find themselves in France. Sincerely yours, Howard K. Travers Chief, Visa Division Rabbi Stephen S. Wise, World Jewish Congress, 330 West Forty-second Street, New York, New York. Regraded Unclassified Regraded Unclassified 188 With the approval of State and FEA, we licensed the transfer by the American Jewish Joint Distribution Committee of $100,000 to Turkey for the purchase of foodstuffs there to be distributed by the International ded Cross among internees in Transnistria. The Inter- national Red Cross has now suggested that some of these funds be used for foodstuffs to be distributed by them in Yugoslavia, Czechoslovakia and Greece and we are presently working with State and FEA on this, Regraded Unclassified 7. Regraded Unclassified 130 A report dated October 12, 1943, received by the Wushington Delegate of the International Red Cross from his headquarters in Geneva, indicated the desperate need for funds in order to provide food and medicines to Jewish refugees in Rumania, Theriesenstadt, Slovakia, And Croatia, areas in which the International Red Cross stated it could operate. One of the first acts of the Tar Refugee Board was the sending of a cable to the International Red Cross in Geneva asking for up to date information on this problem and stating that the Board HAS prepared to see that funds are made available for the necessary operations. Regraded Unclassified COPY 191 CABLE TO BERN Please transmit the following urgent message to the International Red Cross, Geneva, Switzerland, from the War Refugee Board: "We are familiar with the report (contained in your cable No. 571 of October 12, 1943, to your Washington Delegation) conserning possible feeding programs in Rumania, Theresienstadt, Slovakia and Creatia and the need of funds therefor. is desire immediate information conserning what areas you could operate in right now, assuming that necessary funds are made available to you, to provide food and medicines to Jews and other persecuted groups in German-ocsupied areas who are denied the facilities available to the rest of the population. Please advise where food, medicines, and other supplies can be purchased and how much meney is needed. We are prepared to see that funds are made available at once for necessary operations." Regraded Unclassified COPY 102 INTERNATIONAL COMMITTEE OF THE RED CROSS Geneva, October 12, 1943 Central Agency No 571 Note to the Delegation of for Prisoners of the International Committee war of the Red Cross in Washington G. B/Pe. G59/2 0.59/5 JES/HL Re: your cable No. 510 of September 28, 1943 conserning the Jewish problems. We are glad to give you hereafter a new survey of this question and answer you by letter to your above mentioned cable because of the complexity of these problems. ROUMANIA The Relief action on behalf of the Jewish deportees in Transnistria (Ukraine) seems to begin under favorable auspices and we hope to be able to have food distributed to these deportees with money raised in Switzerland and with the assistance of the Roumanian authorities and Red Cross. Unfortunately, we do not receive any funds from overseas, not more for this action than for similar others, 80 that this assistance must remain very limited and depends on contributions which We have to collect on the spot. Our delegation in Bucarest has obtained from the Roumanian government an authorization to visit the places where these deportees are living and to supervise the distribution. Xe also receive lists of names of these deportees. We are therefore entitled to hope that the continued efforts of the International Committee of the ned Cross on behalf of Jewish deportees, will have some tangible result, at least in the case of Transnistria. Regraded Unclassified COPY 192 INTERNATIONAL COMMITTEE OF THE RED CROSS Geneva, October 12, 1943 Central Agency No 571 Note to the Delegation of for Prisoners of the International Committee har of the Red Cross in Washington G. 8/Pe. G59/2 0.59/5 JES/HL Re: your cable No. 510 of September 28, 1943 concerning the Jewish problems. We are glad to give you hereafter a new survey of this question and answer you by letter to your above mentioned cable because of the complexity of these problems. ROUMANIA The Relief action on behalf of the Jewish deportees in Transnistria (Ukraine) seems to begin under favorable auspices and we hope to be able to have food distributed to these deportees with money raised in Switzerland and with the assistance of the Roumanian authorities and Red Cross. Unfortunately, we do not receive any funds from overseas, not more for this action than for similar others, 80 that this assistance must remain very limited and depends on contributions which we have to collect on the spot. Our delegation in Bucarest has obtained from the Roumanism government an authorization to visit the places where these deportees are living and to supervise the distribution. Re also receive lists of names of these deportees. de are therefore entitled to hope that the continued efforts of the International Committee of the Red Cross on behalf of Jewish deportees, will have some tangible result, at least in the case of Transnistria. Regraded Unclassified 193 . 2 We can add that a first report of our delegate has just announced a certain number of improvements obtained because of our intervention. For instance, Jewish children have been gathered at Odessa, in view of their emigration to Palestine. All facilities of travel and supervision in Transmistria have been granted to our delegation during a conference with the President of the Council of Ministers, who showed his sympathy towards the initiative taken by the International Committee of the Red Cross in the question of assistance to the Jews and promised his entire support. RUIGRATION This problem has reached a deadlock at this time. As Bulgaria has declared not to be in a position to authorise the passage of Jews, the emigration by railroad has become impossible. Although the Internation. Committee of the Red Cross did not want to assume itself the charge of organization of transports by sea, it has nevertheless promised to support the efforts displayed in Humania, especially by the Red Cross, in order to find ways and means of securing exit permits for Jens admitted to immigrate to Palestine. Un- fortunately, these plans have not had any success until now, and we have only very little hope to succeed. The reasons are in the first place, the lack of appropriate ships and also, as we believe, lack of funds. Moreover, the situation in the Black Sea does not seem to allow at present, travel by sea, and no ask ourselves even whether, under these circumstances, the necessary safe-condusts could be secured from the belligerents for these ships. But this problem has also a financial aspect. The present regulations conserning the transfer of funds from overseas, do not allow the persons desirous to emigrate, to count on outside financial support. It is therefore up to the Rumanians to secure themselves the necessary funds. This financial question is in direct relation with the possibil- ity of finding appropriate ships for the transport of these persons. The ships which were sonsidered, so far, do not meet the conditions governing the grant of the insignia of the International Committee of the Red Cross, and of its protestion; besides these ships will not be authorised Regraded Unclassified 8 - 194 to leave the Rumanian ports. We follow, however, this question very closely and we shall not fail to intervene In case the least change should occur which would let fore- see a possible favorable solution of this matter. SLOVAKIA The situation is unchanged, and we have no further knowledge of deportations. The only help which was urgently requested, concerned pharmaceutical products, and # communicated the list of those products to the interested Jewish organisa- tions in Switzerland. As these organizations could not sup- ply us with funds, we have not been able to secure the de- sired medicines, although W could have bought them in Switzerland. CROATIA The Jews whose names and internment place in that country we know, seem indeed to be in great need of help, a Jewish organization in Switzerland makes efforts to assist them but the clothes which are especially lacking, are absolute- ly unfindable, and all exportation f rom Switzerland, even of used clothing, is prohibited. (Money can buy food in sufficient quantity in that country.) The hostilities going on at present in Creatia do not allow a clear picture of the situation and of the perspectives concerning the Jews. We do not receive any information on the entire southern part of the country. - with our note No. 528 of September 16, we sent you copies of certain letters concerning the activity of the "Juedische Unterstuetsungsstelle fuer das Generalgeuvernement". Unfor- tunately, shipments ready to be sent, had to be hold back and we do not think to be able, until further notice, to send shipments to Cracow. The letters we sent you have, therefore, only a documentary interest. There are constant variations in this question, and what is allowed and can be realized one day, might be suspended the following day. We are, therefore, not In a position to give assurance for the future. Regraded Unclassified 195 We received the following cable from the World Jewish Congress: submitting you through your Washington office list Jewish interness in Theresienstadt with the request to transmit parcels with food to them stop kindly inform us your decision." (WJC Arieh Tartakower) May we ask you to answer the World Jewish Congress along the following lines: de have delayed our answer to this cable, dated September 7, for technical reasons. The International Committee of the Aed Cross has not concerned itself so far, with the dispatch of individual parcels to persons other than prisoner of war or civilian internees. In Germany and in the occupied countries, the Jews are not considered as civilian internees, neither in the ghettos nor in the concentration or labor camps. The shipments of food, tonies and medicines made by the "Commission Mixte" to the Jews in Theresienstadt, for instance, have always been collective shipments. The creation within the Committee of & new service concerning itself with individual food parcels has become necessary, and we have, therefore, waited for the solution of this problem before answering the cable of the WJC. This ques- tion is now solved, and we will be in a position, in the future, to dispatch individual parcels among others also to the Jews in Theresienstadt whose names we know, provided of course that funds be put at our disposal to this effect. He would consequently be grateful if this last point which was not dealt with in the above mentioned cable of Mr. Tartakower, could be settled, as soon as possible, if it is desired that the International Committee of the Red Cross be able to act. For the International Committee of the Red Cross (signed) Schwayenberg Division of Prisoners, Internees and Civilians. Regraded Unclassified the the 1 w the 197 For some time the World Jewish Congress has been interested In arranging for the evacuation of Jews from Transnistria to Rumania in order to save them from the retreating German army. Appropriate licenses are being issued to permit the necessary transactions and up to date information has been requested from the World Jewish Congress representative in Geneva. That internees can i/e moved from Transnistria to places of safety is supported by the recent reports that 6,400 have recently been moved into Rumania and 500 more are expected to Le moved this week. Immediate facilitation of the present movement may save thousands of lives and private organizations here are ready and willing to help with the necessary funis. Regraded Unclassified 198 COPY TO: Mr. Berle FROM: J. W. Pehle January 28, 1944 It would be appreciated if the attached cable is urgently despatched to Minister Harrison at Bern. /2/ J.W. Pehle (received by Berle 3:50 p.m.) Regraded Unclassified 199 CABLE TO BERN Please transmit the following urgent message to Dr. Riegner of the World Jewish Congress from the World Jewish Congress in the United States: QUOTE We understand that it may be possible for private agencies in Switzerland to communicate with and send funds to persons in Rumania who can arrange for the evacuation of Jews from Transnistria. We desire immediate information concerning what you feel might be done in this regard if the necessary authority and funds were made available to you. The Treasury Department has advised that they are prepared to grant the necessary licenses covering communication and use of funds for this project. The Treasury has also advised that, in addition to the two methods for acquiring local funds contained in licenses previously issued, the Treasury is willing to permit the acquisition of the necessary local funds, goods or services from persons in enemy or enemy-occupied territory against payment in free foreign exchange or free currency notes, provided that it is not feasible to finance the operations otherwise. You should be required to take reasonable steps to avoid such free foreign exchange or free currency notes being paid to persons who would make it available to the enemy. Any information should be furnished at once to Minister Regraded Unclassified 200 - 2 - Harrison for transmittal to the War Refugee Board UNQUOTE Referring to Department's 251 of January 25 you are requested to do what you can to aid private agencies in the development and effectuation of projects of this character. Regraded Unclassified 201 IAN 10AM Mr. Pehle Visa Hodel Mr. Leavitt called this morning re B. cable be had received from Dr. Schwarts in Lisbon to the effect that 6,400 internees, including 400 children, have been re-evacuated from Transnistria to Bucharest during the past meek. An additional 500 are ex- pected to be moved within the next few days. Two hundred Polish refugees were also moved from Cernauti (in Bessarabia) to Bucharest. Mr. Leavitt says that this must have been an official evacuation with the cooperation of the Rumanian Government. The JLC has received no request for funds to assist in the evacus- tion from Transmistria. PHodel:hd 1/31/44 Regraded Unclassified Regraded Unclassified 203 HEBREW SHELTERING AND IMMIGRANT AID SOCIETY 425 Lafayette St., New York 3, N. Y. January 27, 1944 War Refugee Board c/o Secretary of the Treasury Washington, D. C. Gentlemen: We are pleased to send you herewith our check for $100,000. as & contribution towards furthering your efforts to save the victims of enemy oppression and the establishment of havens of temporary refuge for such victims. We are also enclosing, for your information, copy of our letter to President Roosevelt. Respectfully yours, (signed) Abraham Herman President Regraded Unclassified 274 January 27, 1944 Hon. Franklin D. Roosevelt President of the United States The White House Washington, D. C. My dear Mr. President: The Board of Directors of the Hebrew Sheltering and Immigrant Aid Society wishes to express its profound appreciation for your executive order establishing a War Refugee Board charged with the responsibility for the inauguration of effective means for the rescue, transportation, maintenance and relief of the victims of enemy oppression, and the establishment of havens of temporary refuge for such victims. Your executive order, which is in full accord with the humani- tarian tradition of the American Government, has evoked nation- wide approval and enthusiasm, in which we most heartily join. The Hebrew Sheltering and Immigrant Aid Society has been active in the field of immigration and Americanization for xix decades and has exerted every possible effort to save many thousands of people from the persecution abroad by helping them to find havens of refuge. In its desire further to aid these oppressed people, and in accordance with Paragraph 4 of your executive order, the Board of Directors has the honor to inform you that it has resolved to place at the disposal of the War Refugee Board the services of its offices and personnel at home and abroad, and to offer its participation in the cost of the undertaking. In accordance with this resolution, it has this day forwarded to the War Refugee Board a contribution of $100,000. Very respectfully yours, President Regraded Unclassified 205 TREASURY DEPARTMENT Washington FOR INMEDIATE RELEASE PRESS SERVICE Thursday, January 27, 1944. No. 40-49 The Treasury Department announced today that it had re- celved the first contribution for carrying out the President's new program of help to Jews and other persecuted minorities in enemy or enemy-occupied territory. This contribution was prompted by the recent action of the President in establishing the Tar Refugee Board. The gift was in the form of a check for 10.00 on a small bank in a midwestern town. It was accompanied by the following letter: "Today we learned for the first time that Fresident Roosevelt has ordered actual measures for the rescue of those Jews and other people still under Hitler's heel. My wife and myself are among those fortunate Jewish people, who after years of persecution and concentration camps found refuge and a real home in the blessed U.S.A. Our only sorrow concerns the fate of our dear old mother, 77, and our friends, who were taken, 16 months ago, out of their homes to some un- known place. "I am 61, and my wife is 52, so we are not able to make much money, especially as we were not used to hard physical work. That is, why we are not able to send more than this $10, - which we ask you to accept 98 our contribution for this good cause. We are living in this small Ohio town where we were received and accepted as equals among friends we never met before. We will show our gratitude to this Country by doing everything in our limited power." 000 Regraded Unclassified Regraded Unclassified 207 The attached cable was sent to all diplomatic and consular officials of the United States throughout the World. Regraded Unclassified COPY 208 DEPARTMENT RESTRICTED AMERICAN EMBASSY, January 25, 1944 LONDON. The President has instructed the Secretaries of State, Treasury and War to take action for the immediate rescue and relief of the Jews of Europe and other victims of enemy perse- cution. In an executive order issued today the President declared QUOTE it is the policy of this Government to take all measures within its power to rescue the victims of enemy oppression who are in imminent danger of death and otherwise to a fford such victims all possible relief and assistance consistent with the successful prosecution of the war UNQUOTE. The order establishes special governmental machinery for executing this policy. It creates 8. War Refugee Board consisting of the Secretaries of State, Treasury and War. The Board is charged with direct responsibility to the President in seeing that the announced policy is carried out. The President indicated that while he would look directly to the Board for the execution of this policy, the Board would cooperate with the Intergovernmental Regraded Unclassified 295 - 2 - Committee, UNRRA, and other interested international organizations. The President stated that he expected the cooperation of all members of the United Nations and other governments in carrying out this difficult but important task. He stated that the exist- ing facilities of the State, Treasury and War Departments would be employed to furnish aid to Axis victims to the fullest extent possible. He stressed that it was urgent that action be taken to forestall the plot of the Nazis to exterminate the Jews and other persecuted minorities in Europe. You should do everything possible to effectuate this policy of this Government, bearing in mind that time is of the essence. You should cooperate closely with all public and established private agencies who are active in your area in this field, aiding them in the development of coordinated programs and in the effectuation of integrated measures for the resoue, transportation, maintenance and relief of victims of enemy op- pression, etc. The communication facilities should be made freely avail- able to these private agencies for all appropriate messages for carrying out the policy of this Government herein stated, keeping the war Refugee Board advised through the Department. You should give them every assistance in obtaining and verifying information. Regraded Unclassified 210 - 3 - You are requested to render an immediate report concerning the actual situation as it exists today in the country to which you are accredited. This report should include 8. full statement as to what is being done to rescue the Jews and other persecuted minorities from Hitler, including particularly (a) the extent to which these war refugees are permitted to enter the country to which you are accredited (b) the extent to which such country actually encourages and cooperates in their entry and (c) the extent to which such refugees are not able to enter such country because of the failure of such country to cooperate in their entry. This report should cover actual cases which have come to your attention involving refugees being turned back at the border and the reasons why such refugees were turned back. You should also report periodicially on cases of this character which come to your attention in the future. You should include in your report your recommendations as to what you feel this Government can do to e ffectuate with all possible speed the rescue and relief of the victims of enemy oppression, including particularly what can be done to make the government of the country to which you are accredited cooperate more fully in carrying out this policy. Your report should cover any special obstacles which you feel are interfering Regraded Unclassified - 4 - 211 with the rescue and relief of these victims and your recommenda- tions as to what can be done to remove these obstacles. You are requested to approach the Government to which you are accredited, explain the policy expressed in the President's Executive Order referred to above, and ascertain from such Government the extent to which it is prepared to cooperate. Diplomatic and consular officers are instructed to do everything possible to carry out the policy expressed in the President's Executive Order. This cablegram has been transmitted by telegram or airgram to all diplomatic and consular offices. Repeat to consular offices under your jurisdiction. CODE ROOM - Repeat to Missions at Lisbon, Madrid, Stockholm, Bern and Ankara. 840.48 Refugees. VD:HET:RS 1/25/44 Regraded Unclassified 212 WAR REFUGEE BOARD Executive Office of the President Washington *05 MISSASE, INSURING NEWSPAPERS, No. 1 class, January 2B, 1944. The War Refugee Board held its first meeting on Wednesday, January 26. The meeting was attended by Secretaries Hull, preenthon, and Stimson. The Board announced that all United States diplomatic and consular offices throughout the world have been instructed to do everything possible to effectuate this Government's war refugee policy es announced by the President, bearing in mind the urgency of the (roblem. The instructions issued covered the following points: All missions were advised that instructions had been issued by the President to the Secretary of State, the Secretary of the Treasury, and the Secretary of "lar to endeavor to effect immediately the rescue and relief of Jews in Europe and of other victims of Nazi terror. The President's Executive Order, issued on January 22, 1944, contained the following declaration: "It is the policy of this Government to take all measures within its power to rescue the victims of enemy oppression who are in imminent danger of death and otherwise to afford such victims all possible relief and assistance consistent with the successful prosecution of the war. " For the purpose of carrying out this policy, the Order sets up a Tar Refugee Board composed of the Secretary of State, the Secretary of the Treasury, and the Secretary of Var. This Board is responsible to the President, and to it is assigned the responsi- bility for carrying out the policy above announced, While the Board is responsible directly for giving effect to the policy, it is directed to work with UNERA, the Inter- governmental Committee, and other appropriate international organizations, The President Regraded Unclassified - 2 - 213 made it clear that in dealing with this important and difficult problem he expected to have full cooperation from the governments of the United Nations and other foreign governments. The facilities of the Department of State, the Treasury Department, and the War Department were directed to be employed to lend the fullest aid possible to victims of Axis persocution. The President emphasized the urgent necessity of frustrating the Nazi design to exterminate Jewish and other minority groups in Hurcpe. Cooperation was directed with all public agencies and established private organizations in the rescue areas of those officers who are dealing with this problem, to the end that effective programs and measures for relief, rescue, mintenance, and transportation of persecuted victims may be developed and carried out. Immediate reports relating to the situation existing in the countries of the respective officers have been requested which should include information as to the permission granted to war refugees to enter each country, the encouragement and cooperation given such entry, and the extent to which each country does not conporate in permitting entry. There refugees are refused entry nt frontiers, the from and ronsons for such action have been required. immendations as to possible lines of notion Invo been asked, with -------- of special obstpolio Mich may handicap Yes securions and methods of overcoming such obstadies, Fordign governments 5%0 EDE approached to madertain the extent to which they are prepared to cooperate. o0o Regraded Unclassified Regraded Unclassified 215 COPY January 28, 1944 TO: Assistant Secretary McCloy FROM: Secretary Morgenthau In accordance with your timely suggestion it would be very helpful if instructions along the following lines were sent to the appropriate Theater Commanders: "The President has instructed the Secretaries of State, Treasury and War to take action for the immediate rescue and relief of the Jews of Europe and other victims of enemy persecution. In An Executive Order issued January 22, 1944, the President declared "it is the policy of this Government to take all measures within its power to rescue the victims of enemy oppression who are in imminent danger of death and otherwise to afford such victims all possible relief and assistance consistent with the successful prosecution of the war.' The order establishes special governmental machinery for executing this policy. It creates a War Refugee Board consisting of the Secretaries of State, Treasury and War. The Board is charged with direct responsibility to the President in seeing that the announced policy is carried out. The President indicated that while he would look directly to the Board for the execution of this policy, the Board would cooperate with the Intergovernmental Committee, UNRRA, and other interested international organiza- tions. The President stated that he expected the cooperation of all members of the United Nations and other governments in carrying out this difficult but important task. He stated that the existing facilities of the State, Treasury Axis victims to the fullest extent possible. He stressed and War Departments would be employed to furnish aid to that it was urgent that action be taken to forestall the plot of the Nasis to exterminate the Jews and other persecuted minorities in Europe. You should do everything possible, consistent with the effectuate this policy of this Government. You should cooperate successful prosecution of the war in your theater, to Regraded Unclassified 216 - 2 - as closely as possible with all public and established private agencies who are active in your theater in this field in this matter. Consistent with your needs and military security considerations, you should make communication facilities available to these private agencies for appropriate messages for carrying out the policy of this Government herein stated, keeping the War Refugee Board advised through the Department. You should report to the Department any recommendations which you may have as to what you feel this Department can do to effectuate with all possible speed the resoue and relief of the victims of enemy oppression. Foreign representatives of the Department of State and of other Government Departments are being similarly in- structed and you should give them any possible assistance." I would appreciate your bringing this to the attention of Secretary Stimson. /a/ Henry Morgenthau, Jr. January 28, 1944 (Secret Service Agent carried this to McCloy at 5:40 p.m.) Regraded Unclassified Regraded Unclassified 218 January 28, 1944 TO: Mr. Berle FROM: Mr. Pehle It would be appreciated if you would have the attached messages from Secretary Morgenthau to representatives of the Treasury Department in London, Stockholm, Ankara, Lisbon, Cairo, and Algiers dispatched as soon as possible. (signed) J. W. Pehle Regraded Unclassified 213 CABLE TO AMBASSADOR WINANT, LONDON, FOR CASSADAY FROM THE SECRETARY OF THE TREASURY. FOR WINANT FOR CASSADAY FROM SECRETARY MORGENTHAU. State Department's 634 of January 25 describes bes the action which the President has taken for the immediate rescue and relief of the Jews of Europe and other victims of enemy perse- oution. It discusses the functions of the newly created War Refugee Board composed of the Secretaries of State, Treasury and War, and requests our diplomatic and consular officers to do everything possible to carry out the policy expressed in the President's Executive Order. Please familiarize your- self thoroughly with this cable and the text of the Executive Order, and with all aspects of this matter. As representative of the Treasury, you are requested to do everything possible to assist Ambassador Winant in this important task. The Treasury Department is determined to do everything in its power to aid the President's War Refugee Board in its efforts to resoue and bring relief to victims of enemy oppression who are in imminent danger of death. You should keep me informed through Ambassador Winant of any ways by which the existing facilities and powers of the Treasury Department may be employed to furnish aid to Axis victims to the fullest extent possible. Regraded Unclassified 220 CA BLE TO MINISTER NORWEB, LISBON, FOR WOOD FROM THE SECRETARY OF THE TREASURY. FOR NORWED FOR WOOD FROM SECRETARY MORGENTHAU. State Department's 200 of January 25 describes the action which the President has taken for the immediate rescue and relief of the Jews of Europe and other victims of enemy perse- cution. It discusses the functions of the newly created War Refugee Board composed of the Secretaries of State, Treasury and War, and requests our diplomatic and consular officers to do everything possible to carry out the policy expressed in the President's Executive Order. Please familiarize yourself thoroughly with this cable and the text of the Executive Order, and with all aspects of this matter. do everything possible to assist Minister Norweb in this important As representative of the Treasury, you are requested to task. The Treasury Department is determined to do e verything efforts to rescue and bring relief to victims of enemy oppression in its power to aid the President's War Refugee Board in its who are in imminent danger of death. You should keep me informed through Minister Norweb of any ways by which the existing facilities and powers of the Treasury Department may be employed to furnish aid to Axis victims to the fullest extent possible. Regraded Unclassified 221 CABLE TO MINISTER JOHNSON, STOCKHOLM, FOR OISON FROM THE SECRETARY OF THE TREASURY. FOR JOHNSON FOR OLSON FROM SECRETARY MORGENTHAU. State Department's 131 of January 25 describes the action which the President has taken for the immediate rescue and relief of the Jews of Europe and other victims of enemy perse- cution. It discusses the functions of the newly created War Refugee Board composed of the Secretaries of State, Treasury and Mar, and requests our diplomatic and consular officers to do everything possible to carry out the policy expressed in the President's Executive Order. Please familiarize your- self thoroughly with this cable and the text of the Executive Order, and with all aspects of this matter. Às representative of the Treasury, you are requested to do everything possible to assist Minister Johnson in this important task. The Treasury Department is determined to do everything in its power to aid the President's War Refugee Board in its efforts to rescue and bring relief to victims of enemy oppression who are in imminent danger of death. You should keep me informed through Minister Johnson of any ways by which the existing facilities and powers of the Tre sury Department may be employed to furnish aid to Axis victims to the fullest extent possible. Regraded Unclassified 222 CABLE TO AMBASSADOR STEINHARDT, ANKARA, FOR GUNTER FROM THE SECRETARY OF THE TREASURY. FOR STSINHARDT FOR GUNTER FROM SECRETARY MORGENTHAU. State Department's 68 of January 25 describes the action which the President has taken for the immediate rescue and relief of the Jews of Europe and other victims of enemy perse- cution. It discusses the functions of the newly created War Refugee Board composed of the Secretaries of State, Treasury and Mar, and requests our diplomatic and consular officers to do everything possible to carry out the policy expressed in the President's Executive Order. Please familiarize yourself thoroughly with this cable and the text of the Executive Order, and with all aspects of this matter. As representative of the Treasury, you are requested to do everything possible to a. ssist Ambassador Steinhardt in this important task. The Treasury Department tment is determined to do everything in like power to aid the President's War Refugee Board in its efforts to rescue and bring relief to victims of enemy oppression who are in imminent danger of eath. You should keep me informed through Ambassador Steinhardt of any ways by which the existing facilities and powers of the Treasury Department may be employed to furnish aid to Axis victims to the fullest extent possible. Regraded Unclassified 223 CABLE TO AMBASSADOR WILSON, ALGIERS, FOR HOFFMAN FROM THE SECRETARY OF THE TREASURY. FOR WILSON FOR HOFFMAN FROM SECRETARY MORGENTHAU. State Department's airgram of January 26 describes the action which the President has taken for the immediate rescue and relief of the Jews of Europe and other victims of enemy persecution. It discusses the functions of the newly created War Refugee Board composed of the Secretaries of State, Treasury and War, and requests our diplomatic and consular officers to do everything possible to carry out the policy expressed in the President's Executive Order. Please familiarize yourself thoroughly with this airgram and the text of the Executive Order, and with all aspects of this matter. As representative of the Treasury, you are requested to do everything possible to assist Ambassador Wilson in this important taak. The Treasury Department is determined to do everything in its power to aid the President's War Refugee Board in its efforts to rescue and bring relief to victims of enemy oppression who are in imminent danger of death. You should keep me informed through Ambassador Wilson of any ways by which the existing facilities and powers of the Treasury Department may be employed to furnish aid to Axis victims to the fullest extent possible. Regraded Unclassified 224 CABLE TO MINISTER KIRK, CAIRO, FOR MIK S8LL PTLOW THE SECRETARY OF THE TREASURY. FOR KIRK FOR MIKESELL FROM SECRETARY MORGENTHAU. State Department's airgram of January 20 describes the action which the President has taken for the immediate rescue and relief of the Jews of Europe and other victims of enemy persecution. It discusses the functions of the newly created car Refugee Board composed of the Secretaries of State, Treasury and Mar, and requests our diplomatic and consular officers to CO everything possible to c arry out the policy expressed in the President's Executive Order. Please familiarize yourself thoroughly with this airgram and the text of the Executive Order, and with all aspects of this matter. Às representative of the Treasury, you are requested to do averything possible to assist Minister Kirk in this important task. The Treasury Department is determined to do everything in its power to aid the President's War Refugee Board In its efforts to rescue and bring relief to victims of enemy oppression who are in imminent danger of death. You should keep me informed through Minister Mirk of any ways by which the existing facilities and powers of the Treasury LOA Placnt may be employed to furnish aid to Axis victims to the fullest extent possible. Regraded Unclassified Regraded Unclassified 276 The attached cable was despatched on January 1 with a few minor changes made by the State Department. The purpose of the cable is to urge the British to take parallel action in de- claring its policy to rescue the per- secuted peoples of Europe. The cable also indicates that this Government is prepared to continue its work with the Intergovernmental Committee. Regraded Unclassified 227 1-1-'44 CABLE TO AMBASSADOR WINANT IN LONDON. Refer to Department's cable 634 of January 25 concerning the President's Executive Order establishing the Har Refugee Board and declaring the policy of this Government. In discussing this matter with the British Foreign Office, you are requested to make it clear that the establishment of the Har Refugee Board represents this Government's determina- tion to effectively carry out without delay the policy here- tofore agreed upon by the two Governments to take all possible measures for the speedy rescue and relief of the refugees of Europe. Although this Government on its part intends to take all effort will not be unilateral and we wish to make it clear that possible action with all possible speed, we hope that this it continues to be the policy of this Government to encoura and participate in effective cooperative efforts with other governments. Às the President has stated, the Board of course will cooperate fully with the Intergovernmental Committee and other interested international organizations. of this Government and our desire that there be cooperative In making clear to the British Government the position efforts in this field, you should express to the Foreign Office the view of this Government that the joint efforts of the two Governments would be effectively implemented by a declaration of policy upon the part of the British Government similar to urge the British Foreign Office to send instructions to their that made by the President. In this connection you should also diplomatic representatives in foreign countries comparable to the instructions contained in cable 634. Please keep us informed of the attitude of the British on this matter. Regraded Unclassified Regraded Unclassified WU6 LG SER ZG NEWYORK NY FEB 1 1944 628P THE HONORABLE HENRY MORGENTHAU JR SECRETARY OF THE TREASURY AS THE THREE NATIONAL CHAIRMAN OF THE UNITED JEWISH APPEAL FOR REFUGEES OVERSEAS NEEDS AND PALESTINE, LARGEST FUND RAISING AGENCY THROUGH WHICH AMERICAN JEWS PROVIDE FOR THE RELIEF AND REHABILITATION OF REFUGEES IN EUROPEAN AND OTHER LANDS, PALESTINE AND other LANDS, PALESTINE AND THE UNITED STATES, WE ARE MOST ANXIOUS TO MEET WITH YOU AND YOUR ASSOCIATE MEMBERS FOR THE WAR REFUGEE BOARD IN CONFORMITY WITH THE BOARDS DESTRE TO ACCEPT THE SERVICES OF PRIVATE ORGANIZATIONS AND AGENCIES. THE UNITED JEWISH APPEAL FOR REFUGEES, OVERSEAS NEEDS AND PALESTINE PROVIDES FUNDS FOR THE PROGRAMS OF THE AMERICAN JEWISH JOINT DISTRIBUTION COMMITTEE. THE UNITED PALESTINE APPEAL, AND THE NATIONAL REFUGEE SERVICE, WHICH ARE THE MAJOR AGENCIES CONCERNED WITH REFUGEE PROBLEMS IN EUROPE, PALEST INE, AND THE UNITED STATES, RESPECTIVELY. WE WOULD APPRECIATE OPPORTUNITY OF MEETING WITH YOU OR YOUR APPOINTED REPRESENTATIVES AT YOUR EARLIEST CONVENIENCE. IDENTICAL MESSAGES HAVE BEEN SENT TO THE HONORABLE CORDELL HULL AND THE HONORABLE HENRY L STIMSON RESPECTFULLY UNITED JEWISH APPEAL FOR REFUGEES OVERSEAS NEEDS AND PALESTINE RABBI JAMES G HELLER MP. WILLIAM ROSENWALD RABBI JONAH B WISE NATIONAL CHAIRMAN 342 MADSON AVENUE NEW YORK CITY. 825AM FEB2. Regraded Unclassified Regraded Unclassified 231 The Fedhala camp in North Africa is presently under the jurisdiction of FEA, but arrangements are under may to bring it under the control of UNIRA. It is understood that at the present time there are DO refugees in the camp. However, urgent efforts are being made to transfer refugees from Spain to this camp. lie have had several consultations with UNITA people on this roblem and we are working on various methods to facilitate the removal of as many refugees 18 possible from Spain. Regraded Unclassified Regraded Unclassified COPY 233 TO: AMERICAN EMBASSY, LONDON, #370 FROM: SECRETARY OF STATE DATE: JANUARY 14, 1944 With reference to our A-12 January 3, 1944, con- cerning refugees on Island of Rab, Department has just received word from Army officials that Rab has been recaptured from Germans and is now in hands of Yugo- slav Partisans. Please bring to attention of IGC Director and ask that information be furnished De- partment as to means of getting money to these refugees. It is thought necessary funds can be se- cured from private sources in this country and if there are means of getting it to refugees Department will endeavor to secure concurrence of military authorities in giving refugees money to escape to safer area or secure necessities while on Rab. Regraded Unclassified COPY 234 PARAPHRASE TO : AMERICAN EMBASSY, LONDON, #280 FROM: SECRETARY OF STATE DATE: JANUARY 11, 1944 With reference to the subject of refugees on the Island of Rab, it is to be understood and em- phasized that the statement relative to the possible creation of a precedent in the rendition of assist- ance to the refugees by the military authorities, which was contained in our A-12 of January 3, is that of the military authorities and represents a point of view which these authorities may be re- quired to take in view of the military situation. Whenever it is possible, on the other hand, assist- ance is rendered by non-military agencies behind the lines which are there for that purpose. Regraded Unclassified 235 F-Ects F 1900 Regraded Unclassified memorandum FOR SECRETARY OF WAR STIMSON Re: Making Funds Available to Refugees on Island of Bab. I wish to preface WY discussion by saying that in December the Joint Chiefs of Staff were approached at the instance of the Intergovern cental Committee on Refugees with a comprehen- sive project to resoue refugees from the Island of Rab. This plan would have necessitated direct assistance upon the part of the military authorities involving questions of transport, etc. On this basis the Commanding General in the North African Theater of Operations decided that the military situation did not permit the operation contemplated. However, since the proposal which I as about to make is entirely different and such simpler than that rejected by the Commanding General, and in view of our Government's policy with respect to refugees announced at the time of the establishment of the War Refugee Board, I recommend the following for your urgent consideration. Information we have received indicates that there are presently some 1500 refugeos, montly Jewish, on the Island of 2ab in the Adriatie off the Delention const. They apparently were taken there sous time ago by Yugoslav Partisans after being freed from internment. The Island has changed hands several times, but it is understood to be again in the posses- sion of the Partisens. It is believed that many of such wefugees might be able to hire boats to bring them to Italy If they had the neces- sary funds. Similar escapes apparently have been arranged by Fugoslav refugees now in Italy. Funds are available to the War Refugee Board, and probably also from private organizations for this purpose and, it possible, should be sent to these refugees as soon as possible. 230 - 2 - As B method of accomplishing the foregoing, I suggest the following possibility. If means of communication exist between our armed forces and the Yugoslav Partisan leaders, it is suggested that you or the Theater Commander transmit & message to the latter requesting - (a) that the Partisans furnish local currency to refugees on the Island of Rab 80 that the latter may by their own efforts arrange escape to Italy, it being understood that such expenditures will be reimbursed in U. S. dollars or in such other money as the Partisans request; (b) That the Partisans, in the event they cannot furnish necessary local currency, aid the refugees in arranging escape by guaranteeing to the boat owners and other persons assisting in the escape that payment will be made to them by the American military authorities upon arrival of the refugees in Italy; (c) That the Partisans keep the appropriate American military authorities advised of their operations in this field. It will, of course, be necessary for the Theater Commander to make arrangements for payments in Italy in certain cases to persons bringing refugees there from the Island of Rab, and possibly for certain other financial transactions. It is also assential that the Theater Commander continue his policy of caring for any refugees who may be able to reach Italy as the result of their own efforts. Such other assistance as he may be able to give will, naturally, be extremely valuable. It may be made perfectly clear that the War Refugee Board assumes full financial responsibility for the expenses of evacuating the refugees from Rab and will reimburse all outlays. Regraded Unclassified 237 - 3 - If you think that the procedure indicated is feasible, I am sure that you will agree that it should be executed as promptly as possible in view of the uncertainty of the continued possession of the Island of Rab by the Partisans. This has been cleared with Mr. Stettinius who is in agreement. JBF:JWP:lhh 2/1/44 Regraded Unclassified 278 COPY AIRCRAM NO. A 1391 Clear Time 6:00 0.0. October 12, 1943 LOADON. Department has received following telegram from Dr. Goldman, world Jevish Congress: ,ПОТЕ Am being informed from London that 4000 Jewish refugees and Yugoslavs recently in internments camps Yugoslavia have been freed by Yugoslav partisians and removed to Adriatic island of Rab. Understand food and medical sun- plies urgently needed as island suffers serious shortage. In view of possibility island being recantured by Germans most desirable remove refugees soon as possible to safer area. Southern Italy Sicily or North Africa. May I respectfully request to bring this matter to the attention of authorities North Africa and Sicily asking them to take necessary steps. UN DOTE. Please refer to Executive Committee of the Inter- governmental Committee and if you deem it advisable transmit it to Burnhy for Tisenhover, HULL 840.48 Refugees/ 10/9/43 Eu CI/L A-L Mr. Pell Regraded Unclassified BJM COPY PLAIN London Dated November 4, 1943 Rec'd 11:38 p.m. Secretary of State, Washington. 7682, Fourth Upon receipt of Department's airgram A-1391, October 12th regarding refugees on the Adriatic island of Rab, the Embassy communicated its contents to the Director of the Intergovernmental Committee on Refugees for the executive committee and has received from him under date of November 2nd the following communication in which he suggests cer- tain action by the Department; "Would you kindly refer to your letter of the 22nd October 1943 in which you trans- mitted a telegram which the Department of State had received from Dr. Goldman of the World Jewish Congress regarding the situation of certain Jewish refugees on the island of Rab off the Dalmatian coast. We at once got into touch with the World Jewish Congress here, and ascertained that the information on which Dr. Goldman's telegram was based re- lated to the position several months ago. They promised to supply us with further information. Meantime, I have received this morning from Professor Brodetsky of the Jewish Board of Deputies a copy of a let- ter sent to him by an Army Chaplain now in Italy who has been in touch with Yugoslavian refugees in the Bari camp. The letter of the Chaplain is dated 8th October 1943. At that time, according to his information, nearly 3,000 Yugoslavian Jews were on the island, their position being precarious since the island has changed hands several times, but he suggested that their safety could be ensured by their evacuation and concentration in the existing refugee camp at Bari. He further suggested that failing direct help the refugees might be able to hire Italian boats to bring them to safety if they had the necessary funds. Although the situation may have materially changed since the Army Chaplain wrote his letter, there does seem Regraded Unclassified 2:0 - 2 - some chance that the military authorities in Italy might be able to afford some assistance. Malin and I have con- sidered very carefully what action is possible and we suggest that a cable should be sent to the State Depart- ment on the following lines: (One) if there are refugees still on the island, the appropriate military authorities in North Africa or Italy be invited to consider whether there are any practical means of helping them. (Two) We recognize that direct supply of transport would involve military considerations about which we are not in a position to express any opinion. (Three) Failing direct assistance, however, it might be practicable to convey money to the refugees, leaving it to them to make the best arrangements they could for their escape. (Four) Those who did reach the mainland could be kept in the Bari or some other camp pending security and other arrangements. (Five) The cost of transport or the money to be advanced is likely to be comparatively small. If the Intergovernmental Committee had to provide it, this would involve previous consultation with the Governments of the United Kingdom and the United States of America. This, however, might not be necessary as the joint distribution committee or other Jewish organizations might, and probably would be willing to supply the necessary funds. In any case, Malin and I con- sider that the question of ultimate finance should not delay any immediate action that may be possible. On the same ground of urgency, we are nutting forward our suggestions in anticipation of the approval of the executive committee. We suggest that the Department of State be asked to make the necessary approach to the appropriate military authorities. proposed to make suggestions contained in this letter, and I may add that I have mentioned to Randall that we that he saw no objection. I shall be seeing Lord Winterton this afternoon, and shall report the matter to him also". WINANT Regraded Unclassified 211 AIRGRAM NO. A-12 CONFIDENTIAL Time: 6:40 p.m. January 3, 19411 akerbassy, LONDON. With reference assistance to refugees on Island of Rab your 7682 November 4 following 18 quoted from letter received from Joint Chiefs of Staff dated December 15, 1943 quote: The Commanding General, North African Theater of operations, has been consulted with regard to this matter and, oursuant to his recommendation, it has been determined that the military situation does not permit the military authorities to render any direct assistance to these refugees at this time. The Theater Commander has reported that subplies and facilities for displaced persons in Italy are already over- strained, and that demands for these items should, if pos- sible, be reduced. Aside from the fact that operational needs do not permit the rendition of assistance to these refugees, it is considered that to take such action might create a precedent which would lead to other demands and an influx of additional refugees for the care of whom the military authorities would be unable to provide facilities and supplies. Although recommending that no direct assist- ince or funds be provided, the Theater Commander states that he will continue, as in the past, to care for any refugens who should be able to reach Italy as a result of their own efforts. Our latest information is that the refugees on the Island of Rab, together with those at Otocac in Northwest Croatia, total approximately 1,500. and that the majority of these refugees are Jews unquote. Since receipt of letter in reference Department has official information Germans now hold Rab. tion 88 you may deem appropriate to the Directorate of the Please transmit such portions of the above communica- Regraded Unclassified 212 - 2 - Intergovernmental Committee and if the present information of the Committee suggests means of aiding these refugees Department should be informed. HULL Regraded Unclassified Regraded Unclassified 244 We have been advised that the German Government has never publicized stories of the atrocities inflicted on the Jews and other minority groups. It is believed that it would be helpful to get the true facts of those stories across to the people in Germany and German-occu- pied territory, as well as information concerning the attitude of this Government toward such persecutions. The War Refugee Board, its purpo e and program, should be made known to the people of Europe. Regraded Unclassified Regraded Unclassified Attached is the agenda prepared within the State Department and used by Mr. Hull at the first meeting of the War Refugee Board. - - Regraded Unclassified IDENTIAL 1. Announce that general instructions have gone ir representatives abroad advising them of the dent's action and directing pertinent aotion in respective fields, 2. Move for the immediate appointment of an Executive motor charged with the responsibility of formulating olfic proposals and directing action for the resoue and servation of refugees to be submitted for the considera- Ion of the Board, 3. State that full cooperation with the Executive Director will be given by all officers of the Department of State. The Executive Director shall obtain such information or assistance RB he may require from the Chiefs of Divisions of the Department. The files on refugee mat- ters in the custody of the Visa Division will be available for consultation by the Executive Director and will provide full information of the past and present activities here and situations abroad. 4. Notify the Hoard that the following Departmental Order is being issued: "The Executive Director and his officers shall have the right of direct access to the Chiefs of the appropriate Divisions of the Department of State in order to obtain such information or assistance as he may require in formulating his plans." 5. The Department will act as transmitting agent for the Board in correspondence with the Intergovernmental Committee and American Missions abroad, 6. Questions relating to the assignment of special ttaches to American .issions will be considered at once the Department and will consider recommendations from he Board. 7. Announce that you have designated Mr. Stettinium your alternate on the Board. 8. Suggest the Board approach the Congress for ade- ate appropriations for the administrative expenses and x its operating coate unless there are funds available either war or Treasury Departments. Regraded Unclassified TO THE what - mir 248 HOLD FOR RELEASE HOLD FOR RELEASE HOLD FOR RELEASE January 22, 1944 CAUTION: The following MUST EE HELD IN (ONFIDENCE until relessed. NOTE: Release is for ALL REGULAR EDITIONS of MORNING NEWSPAPERS of Sunday, Jenuary twenty-third, 1944. Release by radio commentators, newscasters, etc., NOT EARLIER THAN 9:00 P.N., D.W.T., Saturday, January 22, 1944, STEPHEN EARLY Secretary to the President The .esident today, by Executive Order, set up & Far Refugee Board consisting of the Secretary of State, the Secretary of the Treasury and the Secretary of Far, to take action for the immediate rescue from the Nazia of EE many as possible of the persecuted minorities of Europe -- racial, religious or political -- all civilian victims of enemy savagery. The Executive Order declares that "it is the policy of this Government to take all measures vithin its power to rescue the victims of enemy oppression who are in imminent danger of death and otherwise to afford such victims all possible relief and assistance consistent with the success- ful prosecution of the wer". The Board is charged with direct responsibility to the President in seeing that the announced policy is carried out, The President indicated that while he would look directly to the Board for the successful execution of this policy, the Board, of course, vould cooperate fully with the Intergovern- mental Committee, the United Nations Relief end Rehabilita- tion Administration, and other interested international or- ganizations. The President stated that he expected to obtain the cooperation of all members of the United Nations and other foreign governments in carrying out this difficult but importent task, He stated that the existing facilities of the State, Treasury and Tar Departments would be employed to aid Axis victims to the ^ullost extent possible. He stressed that it was urgent that action be tekon at once to forestell the plan of the Nazia to exterminate all the Jows and other persecuted minorities in Europe. It will be the duty of a full-time Executive Director of the Board to arrange for the prompt execution of the plans end programs developed and the moasuros insugurated by the Board. The Executive Order follows: Regraded Unclassified - 2 EXECUTIVE ORDER ESTABLISHING A WAR REFUGEE BOARD WHEREAS it is the policy of this Government to take all measures within its power to rescue the victims of enemy oppression who are in imminent danger of death and otherwise to afford such victims all possible relief and assistance consistent with the successful prosecu- tion of the war; NOW, THEREFORE, by virtue of the authority vested in me by the Constitution and the statutes of the United States, as President of the United States and as Commander in Chief of the Army and Navy, and in order to effectuate with all possible speed the rescue and relief of such victims of enemy oppression, it is hereby ordered 85 follows: 1. There is established in the Executive Office of the President a War Refugee Board (hereinafter referred to as the Board). The Board shall consist of the Secretary of State, the Secretary of the Treasury and the Secretary of War. The Board may request the heads of other agencios or departments to participate in its deliborations whenever matters specially affecting such agencies or departments are under consideration. 2. The Board shall be charged with the responsibility for sceing that the policy of the Government, as stated in the Preamble, is car- ried out. The functions of the Board shall include without limita- tion the development of plans and programs and the inauguration of effective measures for (a) the rescue, transportation, maintenance and relief of the victims of enemy oppression, and (b) the establishment of havens of temporary refuge for such victims. To this end the Board, through appropriate channels, shall take the necessary steps to enlist the cooperation of foreign governments and obtain their parti= cipation in the execution of such plans and programs. 3. It shall be tho duty of the State, Treasury and War Depart- ments, within their respectivo spheres, to execute at the request of the Board, the plans and programs so developed and the measures so inaugurated. It shall be the duty of the heads of all agencios and departments to supply or obtain for the Board such information and to extend to the Board such supplies, shipping and other specified assistance and facilities as the Board may require in carrying out the provisions of this Order. The State Department shall appoint special attaches with diplomatic status, on the recommondation of the Board, to be stationed abroad in places where it is likoly that assistanco can be rendered to war refugees, the dutios and responsibilitios of such attaches to be defined by the Board in consultation with the State Department. 4. The Board and the State, Treasury and War Departments are authorized to accopt the services or contributions of any private per- sons, private organizations, State agoncios, or agoncios of foreign governmonts in carrying out the purposes of this Order. The Board shall cooporato with all existing and futuro international organiza- tions concerned with the problems of rofugoo rescue, maintenance, transportation, rolief, rohabilitation, and resottlement. Regraded Unclassified 249 - 3 - 5. To the extent possible the Board shall utilize the personnel, supplies, facilities and services of the State, Treasury and War Do- partments. In addition the Board, within the limits of funds which may be mado available, may employ necessary personnel without rogard for tho Civil Service laws and regulations and the Classification Act of 1923, as amonded, and mako provisions for supplies, facilities and services necessary to dischargo its rosponsibilities. The Board shall appoint an Executive Director who shall servo as its principal exccu- tivo officor. It shall be tho duty of the Executive Director to are rango for the prompt oxocution of tho plans and programs dovoloped and the measuros inaugurated by the Board, to superviso the activi- ties of the spocial attaches and to submit froquont reports to tho Board on the stops takon for tho rescuo and rolief of war refugoos. 6. The Board shall bo directly responsible to the Prosident in carrying out the policy of this Government, as stated in tho Proamble, and the Board shall report to him at frequent intervals concorning the stops taken for the rescue and rolief of war refugoos and shall make such rocommondations as the Board may deem appropriate for furthor action to overcome any difficulties encountered in the rescue and ro- liof of war refugeos. FRANKLIN D. ROCSEVELT M THE WHITE HOUSE, January 22, 1944. - - Regraded Unclassified 251 PEHLE AS EXECUTIVE DIRECTOR OF WAR REFUGEE BOARD 1. Pehle has backing of Jewish organizations, with whom he has been dealing for months. This includes World Jewish Congress and Joint Distribution Committee. Also has backing of Emergency Committee to Save the Jews of Europe. 2. Pehle has backing of leading men truly interested in this program. 3. Pehle is O.K. with Hull and Stimson, if President agrees. 4. Pehle is known to many foreign governments. Has been dealing with representatives of foreign governments for over three and one-half years - ever since beginning of freezing control. This includes the governments of the neutral countries of Europe, the Governments in exile, the governments of Latin America, the French Committee of National Liberation, etc. 5. Pehle has been dealing with important aspects of this whole matter and similar matters for months. In many of these operations financing is the key to the solution. Foreign Funds Control has been handling the financial aspects of relief operations for a long time. 6. Some of our accomplishments in this matter to date. See attached memorandum. 7. Need for a man with a "name". We have had men with "names" on this job for several years - nothing has been-accomplished. Regraded Unclassified 252 - 2 - Pehle can handle most if not all of the problems that a man with & "name" could handle. He will have three cabinet officers back of him. And if it becomes necessary in any particular case to have a big name actually handling the job, Secretary Morgenthau will step in and handle the job personally. 8. Put Pehle in as Acting Director and see how it works. Regraded Unclassified Regraded Unclassified 254 March 23, 1938. President Roosevelt inquires of the governments of refuge and settlement whether they would be willing to join the United States in setting up an Intergovernmental Committee which would seek to introduce order into the forced migration of political and religious refugees from central Europe. May 16, 1938. The President's Advisory Committee on Political Refugees holds its first meeting, the following being in attendance: James G. McDonald, Hamilton Fish Armstrong, Paul Baerwald, Joseph P. Chamberlain, Basil Harris, James M. Speers, and Rabbi Stephen S. Wise. Mr. McDonald heads this Committee. July 6, 1938. Representatives of thirty-three govern- ments meet at Evian. The United States was represented by Myron C. Taylor assisted by Robert Pell and George Brandt of the State Department. September 1938. George Rublee, takes up his duties in London as director of the Intergovern- mental Committee set up at Evian. He was named to this post by the President, and continued as director until February 1939, when he was succeeded by Sir Herbert Emerson. October 17, 1939. Officers of Intergovernmental Committee meet at White House. Lord Winterton, chairman, Myron C. Taylor, vice chairman and James G. McDonald, chairman of the Advisory Committee are among those present. January 1941. Intergovernmental Committee meets at Cuidad Trujillo, Dominican Republic. Among those addressing the meeting are Regraded Unclassified 255 - 2 - George Warren, representing the Advisory Committee. March 2, 1943. The U. S. and British Governments agree to meet at Bermuda to consider the refugee problem. April 19, 1943. Bermuda conference opens. U.S. delegation consists of Harold Willis Dodds (president of Princeton University Senator Scott Lucas (Ill.), Representative Sol Bloom (N.Y.), and " R. Bordon Reams (State Department) May 19, 1943. Bermuda conference terminated. Details of determinations are considered con- fidential. Regraded Unclassified G it OF ! net 1/ 0.71 11 April / / / - , Allocation No. 44-58 257 THE WHITE HOUSE Washington JAN 29 1944 My dear Mr. Secretary: By virtue of the authority vested in me by law I hereby allocate from the appropriation entitled "Emergency Fund for the President, National Defense, 1942-44," To Amount War Refugee Board $1,000,000 to be expended by said Board in connection with emergencies affecting the national security and defense for carrying out the functions of the Board as prescribed by Executive Order 9417 of January 22, 1944. The funds hereby allocated shall be available, without regard to Section 3709 of the Revised Statutes (41 U. S. C. 5), for all necessary expenses of the War Refugee Board in carrying out Executive Order 9417, including employment of persons (including aliens) or organizations, by contract or otherwise, in the District of Columbia and elsewhere without regard to the civil service and classification laws; acceptance and utilization of voluntary and uncompensated services; transportation expenses outside the United States without regard to the Standardized Government Travel Regula- tions; actual transportation and other necessary expenses, and not to exceed $10 per diem in lieu of subsistence, of persons serving while away from their permanent homes or regular places of business in an advisory capacity to or employed by the Board without other compensation from the United States; purchase and exchange of law books and books of reference; purchase of or subscription to newspapers and periodicals; purchase of food, clothing, and medical for the benefit of victims of war, without the necessity for cash supplies within or outside the United States; cash payments to and receipts where receipts are not obtainable; purchase, without regard to statutory limitations as to price, maintenance, operation, repair, and hire of moter-propelled or horse-drawn trucks and passenger- for employees or others engaged in carrying out the purposes hereof; carrying vehicles; payment of premiums on fidelity or other bonds advances of monies without regard to Section 3648 of the Revised Statutes (31 U. S. C. 529); exchange of funds without regard to Sec- binding without regard to Section 11 of the Act of March 1, 1919 tion 3651 of the Revised Statutes (31 U. S. C. 543); printing and (44 U. S. C. 111); and the reimbursement of other appropriations Regraded Unclassified 258 - X - from which payment may have been made for the purposes hereof: Provided, That not to exceed $500,000 of the funds hereby allocated shall be available for objects of a confidential nature and shall be charged against the limitation for such purposes under said appropriation, and shall be accounted for solely on the certificate of the Executive Director of the Board. Please arrange for the necessary transfer of funds and advise the War Refugee Board accordingly. Sincerely yours, /2/ Franklin D. Roosevelt The Honorable The Secretary of the Treasury Regraded Unclassified Regraded Unclassified 260 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATEFeb. 2, 1944 Secretary Morgenthau TO FROM J. W. Pehle You will be interested in the attached request for an appropriation sent by State to Budget on January 28, after the establishment of the War Refugee Board, without consulting us in any way. State's description of the work and accomplishments of the Intergovernmental Committee on Refugees constitutes an inadvertent but nevertheless conclusive indictment of the Intergovernmental Committee for its inaction. Justial Attachment Regraded Unclassified 261 EXECUTIVE OFFICE OF THE PRESIDENT BUREAU OF THE BUDGET WASHINGTON, D. C. February 2, 1944 MEMORANDUM TO: Mr. John W. Pehle, Director Foreign Funds Control Division Room 288 1/2 Treasury Building FROM: Louis H. Bean I passed on to Mr. Trott of our Estimates Division your interest in seeing the justification statement cover- ing request for appropriation of $5,000,000 for the Inter- governmental Committee on Refugees. I am glad to send you 8. copy. Enclosure Regraded Unclassified COPY 262 January 28, 1944 My dear Mr. Smith: There is submitted herewith for your consideration and, if you approve, for transmission to Congress for inclusion in the-next deficiency bill, an estimate in the sum of $5,000,000 for the Intergovernmental Committee on Refugees. The justification which accompanies the estimate sets out the purposes for which this appropriation is required. Sincerely yours, For the Secretary of State: /8/ G. Howland Shaw G. Howland Shaw Assistant Secretary Enclosure: Estimate. A true copy of the signed orig- inal. /i/ GSH The Honorable Harold D. Smith, Director of the Bureau of the Budget. A-S/2 BF:EAL:JAD Regraded Unclassified 263 COPY Intergovernmental Committee on Refugees - For the share of the United States of the expenses of the Intergovernmental Committee on Refugees and expenses of operations carried on in connection with the work of the Committee, without regard to the provisions of any other act, $5,000,000, to be immediately available and remain available until June 30, 1945. Regraded Unclassified 264 THE INTERGOVERNMENTAL COMMITTEE ON REFUGEES The President has approved the submission to Congress of an estimate of $5,000,000 to carry on work in connection with the Intergovernmental Committee on Refugees. Of this amount $1,000,000 is estimated to defray this Government's share of the expenses of the Intergovernmental Committee, and $4,000,000 is estimated for carrying out certain agreements which have been made for rescuing and assisting refugees in various parts of the world. Background - The Intergovernmental Committee on Refugees was established at the Evian Conference held at Evian, France in July 1938. The meeting was called to consider the problem of refugees coming from Central Europe who were suffering the persecutions of the Nazi Government. President Roosevelt assumed the initiative in calling the Evian Conference and it was attended by representatives of thirty-two governments. It was decided to constitute the meeting into a continuing committee of the whole to be known as the Inter- governmental Committee on Refugees. The Committee established its headquarters at London. Lord Winterton, a member of the British Cabinet was made Chairman and four vice-chairmen representing France, Brazil, the Netherlands and the United States, together with the Chairman, constituted the Executive Committee. In February 1939, a representative of the Argentine Government was added to the Executive Committee. Mr. Myron C. Taylor was the United States representative and he continues to act in this capacity at the present time. A. director was ap- pointed who was the executive officer of the Committee and he was given a small staff of assistants. During the first year of its existence the Committee was chiefly concerned with efforts to negotiate with the Germans in order to work out some orderly plan of migration for those who because of their race, religion or political beliefs were being oppressed by the Nazis. Before any major accomplishments were achieved, however, the war broke out and the activities of the Com- mittee were necessarily limited by conditions which the war imposed. Activities thereafter largely consisted of making negotiations for places of resettlement under 8. three to five year program with various governments, including those of the Dominican Republic, the Philippine Commonwealth, British Guinea and Northern Odessa. Regraded Unclassified - 2 - 265 During the early part of 1943 the British and American Governments decided to call a meeting to examine in the light of existing circumstances all possible methods of relieving the distress of those in Europe who were victims of Nazi aggression. This resulted in the convening of a Conference in Bermuda in April, 1943, at which time a number of practicable measures were adopted. Some of these were as follows: 1. That the staff of the Intergovernmental Committee be increased and a management committee created. 2. That provision be made for the procurement of public and private funds adequate for the work of the Intergovernmental Committee. 3. That the membership of the Committee be broadened. 4. That the Intergovernmental Committee be invited to revise its mandate. 5. That the United States and United Kingdom Governments adopt and urge adoption by the European Allied Governments of a joint declaration on the return of refugees to their homes after the war. Other recommendations pertained to negotiations with specific allied and neutral governments to secure places of temporary or permanent settlement for refugees. Since the meeting in Bermuda the Intergovernmental Committee has made considerable progress in carrying out the recommendations of the Conference. In the first place the mandate of the Committee as defined in July 1938 has been extended. At a meeting of the Executive Committee on August 4, 1943 the following mandate was adopted: "The Intergovernmental Committee shall extend its mandate 80 as to include, as may be found necessary and practicable, in addition to those already within the mandate, those persons, wherever they may be, who as a result of events in Europe have had to leave, or may have to leave, their countries of residence because of the danger to their lives or liberties on account of their race, religion or political beliefs. Regraded Unclassified 266 - 3 - "With regard to persons coming wi thin the mandate as extended the Executive Committee be empowered by the member states to undertake negotiations with neutral or allied states or with organizations, and to take such steps as may be necessary to preserve, maintain and transport them. The Executive Committee shall be em- powered to receive and disburse for the purposes enumerated above, funds both public and private." Thus, the Intergovernmental Committee is intended to be an international body for the protection of various nationals as well as stateless persons. Where there is no other international body operating in a particular area, it will be to the Inter- governmental Committee that the governments concerned and the refugees will look for help. The membership of the IGC has also been increased. The present member-governments and those who have been asked to join are given on an attached sheet. The staff of the present Intergovernmental Committee now includes the Director, Sir Herbert Emerson, who serves without remuneration while continuing as the League of Nations High Commissioner for Refugees; he is assisted by 8. Vice-Director, Mr. Patrick Malin, of the United States; Dr. Gustav Kullman, & Swiss citizen serves as honorary assistant director; and Dr. John Gottlieb Sillem, a Netherlands diplomat, is the secretary. It is anticipated that additional administrative and clerical help will be added most of whom will be representatives of the Committee who are to serve in branch offices which it is proposed to establish in Algiers, Naples, Lisbon and Madrid. In the near future it is expected that a joint declaration will be issued by the various allied nations concerning the repatriation of persons who have been displaced by the war. The United States, Great Britain and Soviet Russia have already agreed on the wording of the declaration and when issued it is thought that the effect will be to encourage neutral countries to provide asylum for those who are so fortunate as to escape from the Nazis. The publication of the statement will be one of the important accomplishments of the Committee. Finances of the Committee - In 1938 it was determined that expenses of the Committee Regraded Unclassified 266 - 3 - "With regard to persons coming wi thin the mandate as extended the Executive Committee be empowered by the member states to undertake negotiations with neutral or allied states or with organizations, and to take such steps as may be necessary to preserve, maintain and transport them. The Executive Committee shall be em- powered to receive and disburse for the purposes enumerated above, funds both public and private." Thus, the Intergovernmental Committee is intended to be an international body for the protection of various nationals as well as stateless persons. Where there is no other international body operating in a particular area, it will be to the Inter- governmental Committee that the governments concerned and the refugees will look for help. The membership of the IGC has also been increased. The present member-governments and those who have been asked to join are given on an attached sheet. The staff of the present Intergovernmental Committee now includes the Director, Sir Herbert Emerson, who serves without remuneration while continuing as the League of Nations High Commissioner for Refugees; he is assisted by a Vice-Director, Mr. Patrick Malin, of the United States; Dr. Gustav Kullman, a Swiss citizen serves as honorary assistant director; and Dr. John Gottlieb Sillem, a Netherlands diplomat, is the secretary. It is anticipated that additional administrative and clerical help will be added most of whom will be representatives of the Committee who are to serve in branch offices which it is proposed to establish in Algiers, Naples, Lisbon and Madrid. In the near future it is expected that a joint declaration will be issued by the various allied nations concerning the repatriation of persons who have been displaced by the war. The United States, Great Britain and Soviet Russia have already agreed on the wording of the declaration and when issued it is thought that the effect will be to encourage neutral countries to provide asylum for those who are so fortunate as to escape from the Nazis. The publication of the statement will be one of the important accomplishments of the Committee. Finances of the Committee - In 1938 it was determined that expenses of the Committee Regraded Jnclassified - 4 - 267 meetings should be shared by the member governments according to the Evian Scale which was an adaption of the League of Nations Scale. This system continued until the IGC meeting of July 1939, when it was resolved "that the Director contrive to make every effort to keep expenses of his office to a minimum; that the govern- ments participating in the Committee contribute to the expenses of future meetings of the Committee according to the Evian Scale and make such contribution to the expenses of the Director's office as they may deem appropriate". On June 25, 1938 Congress appropriated $50,000 as this Government's share of the IGC expenses. On June 30, 1939 Congress made an additional appropriation of $20,000 and continued available the unexpended balance of the previous appropriation until June 30, 1940. By Acts approved on June 27, 1940, July 3, 1941 and July 2, 1942 the unexpended balances of previous appropriations were extended to June 30, 1943. At the present time, no money is available to meet this Government's share of the Committee expenses. Expenses of the IGC are classified into two groups: (1) administrative expenses, which include those necessary for main- taining the headquarters office at London and the costs of the meetings of the IGC, and (2) operational expenses, which are defined as all expenses other than administrative expenses. These include the cost of providing relief to refugees and expenses of maintaining IGC offices abroad, with the exception of the headquarters office at London. In accordance with present resolutions as adopted by the Committee, member governments may be expected to share administrative expenses according to the Evian scale, which incidentally may have to be adjusted to meet present needs, but they cannot be expected to share the operational expenses. At the August 4, 1943 meeting America of of other the the than Committee governments jointly administrative to it underwrite of was the resolved United expenses, be considered the Kingdom that, expenditures it "In be individually, and agreed view the of of United that the the all Committee and agreement States projects that of the and governments the financing of the thereof United Kingdom and the United States of America be consulted before B. project is sanctioned or expenditure incurred thereon." It was further understood that when a clearer idea has been obtained of the money required for the efficient conduct of the Committee's work under its new commitments, an invitation will be addressed to all the member governments inviting them to abilities and their interest in the humanitarian work of the contribute to this expenditure also, in accordance with their Regraded Unclassified 268 - 5 - Committee. It is possible that other Governments may contribute to operational expenses but for the present it must be assumed that the British and the American Governments may have to pay the entire operational costs. For the calendar year 1944 the Director estimates that administrative expenses of the Committee will be twenty-one thousand pounds. Operational expenses are estimated to be one million pounds. Assuming that this Government should contribute to the total expenses of 1,021,000 pounds according to the original Evian Scale, our share of the expenses would be $776,317.62. The original Evian Scale gave this country one hundred eight points out of a total of five hundred seventy-one points. Considering the value of & pound to be four dollars and two cents, our share of the costs is estimated to be the figure given above. In view of our previous agreement to share operational expenses equally with the British, and the fact that other Govern- ments cannot be expected to share these costs, an additional $233,783, or a total of one million dollars, is requested to meet our share of IGC expenses. Expenditures for other refugee projects - For the most part projects for the relief and rescue of refugees in Europe in which this Government may be interested are referred to the IGC. However, as stated above, this Government and the British have an understanding that they may undertake, subject to legislative consent, to finance jointly various under- takings on behalf of refugees which seem advisable. In such undertakings the IGC may or may not be asked to assist. While it is impossible to estimate the exact requirements for these purposes, it is essential that a reasonable sum be set aside to meet the requests for assistance which have been made and will be made in the near future. There are in various parts of Europe a large number of refugees, & majority of whom are Jewish persons, who are in need of assistance because of Nazi persecution. The Department is at present interested in several plans of relief for these persons which will require expenditure of funds. While it is impossible to estimate the exact requirements it is essential that a reasonable sum be set aside to meet the requests for assistance which have been made and will be made in the near future. Regraded Unclassified 269 - 6 - The most extensive project for relief and assistance to refugees which is under consideration at present is one calling for an expenditure of $10,000,000 for persons now located in Rumania and France. It has been proposed that several private associations donate $2,000,000 and that this Government agree to provide $4,000,000 if the British furnish a like amount. Inquiries have been directed to the Governments of Switzerland and Sweden as to whether they require help in caring for the large number of refugees who are now located in those countries. It is anticipated that & substantial amount may have to be spent to relieve the burden which has been imposed upon Sweden and Switzerland. It is likely also that money will be necessary to aid refugees now in Italy. Because of the uncertainties and unforeseen contingencies which are constantly arising no one can foresee the exact cost of all these undertakings. This money is to be spent primarily in areas or for projects which do not fall within the scope of the United Nations Relief and Rehabilitation Administration, and, except that which is specially designated as the contribution of this Government to the Intergovernmental Committee, shall be spent only on projects approved by both the British and American Governments. Regraded Unclassified 270 Intergovernmental Committee on Refugees Member Governments and those Invited to Join Governments Invited to Join Following Member Governments Meeting of Executive Committee as of August 4, 1943 of IGC August 4, 1943 United States South Africa (accepted by telegram no. 499 Argentina from London, January 19, 1944) Australia Czechoslovakia (accepted by telegram no. 499 Belgium from London, January 19, 1944) Bolivia Egypt (accepted by telegram no. 499 from United Kingdom London, January 19, 1944 Brazil Ethiopia Canada Greece Chile Iceland Colombia India Cuba Iran Denmark Iraq Dominican Republic Luxemburg (accepted by telegram no. 499 Ecuador from London, January 19, 1944) France Poland (accepted by telegram no. 499 Haiti from London, January 19, 1944) Honduras Portugal Ireland Salvador Mexico Spain Nicaragua Turkey Norway Union of Soviet Socialist Republics (accepted New Zealand by telegram no. 9034 from London Dec. 29, 1943 Paraguay Yugoslavia Netherlands Peru Former Members Invited to Re-join Sweden Following August 4, 1943 Meeting Switzerland Costa Rica Uruguay Guatemala Regraded Unclassi 271 COPY DEPARTMENT OF STATE LIBERATED AREAS DIVISION February 2, 1944 TO: Mr. John W. Pehle, Special Assistant to the Secretary, Treasury Department. FROM: Mr. Edward G. Miller, Jr. In accordance with our conversation this morning, I enclose herewith a copy of my memorandum of January 31, 1944 to Mr. Acheson and Mr. Stettinius, together with a copy of a memorandum approved by Mr. Long, regarding the division of responsibility between the War Refugee Board and the United Nations Relief and Rehabilitation Administration. Please call me when you want to discuss this. /8/ Eddie LA:EGM:mkg Regraded Unclassified COPY 272 DEPARTMENT OF STATE LIBERATED AREAS DIVISION January 31, 1944 A-A Mr. Acheson: U Mr. Stettinius: With reference to the President's Executive Order of January 22, 1944 creating the War Refugee Board, it seems essential before the Board commences operations to consider and establish clearly the division of responsi- bility between the Board and the United Nations Relief and Rehabilitation Administration with respect to assistance to refugees. The question is raised in this memorandum because of the possibility of doubt in this respect arising from the wording of the Executive Order. The Order states that "it is the policy of this Government to take all measures within its power to rescue the victims of enemy oppression who are in imminent danger of death and otherwise to afford such victims all possible relief and assistance consistent with the successful prosecution of the war" and that "the Board shall be charged with the responsibility for seeing that the policy of the Government is carried out". More specifically, the Order states that the function of the Board shall include, in addition to activities in connection with the rescue of the victims of enemy oppression, the maintenance and relief of such victims and the establishment of havens of temporary refuge for them. The Order also states that the Board shall cooperate with all existing and future international organizations concerned with the problems of refugee rescue, maintenance, transportation, relief, rehabilitation and resettlement. The UNRRA Agreement provides in the preamble for the making of preparations and arrangements for the return of prisoners and exiles to their homes and in Article I, 2, (a) states that the purposes of the Administration shall be to plan, coordinate, administer, or arrange for the administration of measures for the relief Regraded Unclassified 273 - 2 - relief of victims of war in any area under the control of any of the United Nations. It was clearly contemplated by the Resolutions and Reports at Atlantic City that it should be one of the functions of UNRRA to care for refugees originating from enemy territory but located in United Nations territory pending their repatriation or resettlement. UNRRA is accordingly planning to take over the administration of certain refugee camps in North Africa to which there have been or will be transported refugees of various nationalities from enemy territory. I under- stand, however, that the view has been expressed by persons connected with the War Refugee Board that it should be part of the functions of the Board to take over the administration of some or all of these camps. It seems clear that under their respective terms of reference both UNRRA and the War Refugee Board may engage in operations of this type. However, it would seem that the need which the Board was created to fill was to have an agency to devote itself to rescuing victims of oppression by negotiating for their withdrawal from enemy territory. This is a function which UNRRA was obviously not created to perform. It is recommended, therefore, that the following division of responsibility be agreed upon between the War Refugee Board and UNRRA: 1. The War Refugee Board shall confine itself to taking measures to secure the withdrawal of victims of oppression from enemy or enemy-occupied territory and transporting them to areas under the control of the United Nations where they may be cared for by UNRRA. If in certain cases it is possible for the Board to bring these persons only to neutral territory, then it may be the function of the Board to assist them in such territory since UNRRA would not be entitled to operate therein. 2. UNRRA shall be charged with the responsibility of assistance to such persons upon their arrival in United Nations territory pending their repatriation or resettlement. The foregoing does not take into account the functions of the Intergovernmental Committee on Refugees in this field. There is attached hereto a memorandum drafted by Mr. Brandt Regraded Unclassified 274 - 3 - Mr. Brandt and approved by Mr. Long prior to the creation of the War Refugee Board which is concerned with the division of responsibility between UNRRA and the Intergovernmental Committee. Since I do not know what the future of the I.G.C. will be, I am making no recommendation with respect to this matter. The Report of the Sub-Committee on Dis- placed Persons at the Atlantic City Conference reflected the view of the United States Delegation on this subject as follows: "UNRRA will assist in the care and repatria- tion of such of these persons as can, and are willing to, return to their countries of origin or of former residence. The Inter-Governmental Committee has the function of finding places of settlement for such of them as fall within its competence and as cannot or do not desire to be so repatriated. It should be the responsibility of the relief organs of UNRRA to assist, for 8. reasonable period, in the care of such of these refugees as cannot be repatriated, until the Inter-Governmental Committee is pre- pared to remove them to new places of settlement." The attached memorandum seems to accord with the views expressed at Atlantic City except that the last sentence of the second paragraph seems open to some question insofar as it states that neither UNRRA nor the I.G.C. shall have any responsibility toward those refugees who refuse repatriation or return home by UNRRA; it has been my understanding that in such cases it would be one of I.G.C.'s principal functions to effect their resettle- ment in new homes. Edward G. Miller, Jr. LA:EGM:mkg Regraded Unclassified 275 COPY A-L/B January 21, 1944 A-L - Mr. Long: Upon your request and in completion of our work on refugee matters, I submit the following recommendation for determining responsibility for refugees as it may lie between the Inter-Governmental Committee on Refugees and UNRRA. The determination of responsibility between the two organizations named should be made on territorial lines. UNRRA operates only in the areas under the control of any of the United Nations. Therefore, it should repatriate or return to their homes any refugees, i.e., displaced persons, found in any of those areas whose countries of nationality or whose homes are within any such area. This activity is authorized by the UNRRA agreement, as I under- stand it. It may be further noted that Resolution No. 10 adopted at the UNRRA meeting at Atlantic City recommends that the Director General of UNRRA take steps to obtain the cooperation of the Inter-Governmental Committee on Refugees, among other agencies, in repatriating displaced persons. It should be understood that areas under the control of any of the United Nations mean conquered enemy territory, as well as liberated areas and United Nations territory which has not come under occupation of the enemy during the war. Finally, it should be understood that no responsibility either of UNRRA or the Inter-Governmental Committee rests toward those refugees found within those areas who refuse repatriation or return home by UNRRA. There remain then the neutral states in whose territory the Inter-Governmental Committee on Refugees should operate to repatriate, return home or resettle refugees located temporarily therein. Each of the two organizations within its respective areas of responsibility, as indicated above, should be pre- pared to care for and maintain to the extent necessary the refugees toward whom it is responsible, pending their disposition as proposed above. referred to Assistant Secretary Acheson, American representa- If you approve, I suggest that this memorandum be tive on the Council of UNRRA, to consider with the other Departmental officials concerned, and then to obtain UNRRA and IGC agreement. A-L/BRANDT:MSL Regraded Unclassified COPY 276 OFFICE OF THE UNDER SECRETARY OF STATE WASHINGTON February 2, 1944 Dear Mr. Pehle: I enclose herewith a Department of State file pertaining to the administration of relief for surviv- ing refugees in Europe together with a copy of a cable on the matter which has been prepared in the Depart- ment. It appears, however, that the proposed cable and cable No. 279 to Bern, sent at the request of the War Refugee Board, are not entirely consistent. We think, therefore, that appropriate representatives of the War Refugee Board may wish to review this file and perhaps draft a more appropriate communication to London on the matter. Will you be good enough to re- turn the enclosed file to me after it has been re- viewed. With best wishes, Sincerely yours, /s/ Hayden Raynor HAYDEN RAYNOR Encs. Mr. John W. Pehle, Director of Foreign Funds Control, Department of the Treasury, Washington, D. C. Regraded Unclassified COPY 277 CONFIDENTIAL No. A Time AMEMBASSY, LONDON. Concerning the proposal that relief for surviving Jewish refugees in Europe be administered by the International Red Cross referred to in the Embassy's despatch No. 12660, December 8, and its enclosure of a letter from the Director of the Intergovernmental Committee, dated December 7, the Department requests that you transmit to the Director the following com- ments which refer to numbered paragraphs of his letter under reference: 2. The Department agrees to the sum of three hundred thousand Swiss francs, but this Government cannot contribute its share until funds which have been requested have been authorized. You will be advised as soon as funds for this purpose are available. The request of the International Red Cross for permission to purchase food and supplies in Hungary and Rumania will be considered jointly by the State Department, the Treasury Department and the British Embassy. The Department will advise you assoon as possible concerning the results of the discussions. 3. (a) Approximately two million dollars. (b) This Government is prepared to share equally with the British Government such part of the total cost as remains after contributions have been received from private organizations. The share of each of the Regraded Unclassified 278 -2- of the two governments may amount to four million dol- lars. In this connection the President has approved a request for funds, and we are asking Congress for an appropriation. The Department concurs in the suggestions concern- ing the Intergovernmental Committee contained in sub-paragraphs (1), (2) and (3) of the Director's let- ter under reference. The Department also concurs in the proposal that the Intergovernmental Committee should be the authority through which private as well as government funds are received and disbursed for the purpose of miding and transporting refugees. With further reference to the Director's letter, the Department is studying the suggestion that the Inter- governmental Committee be designated as the authority through which private organizations would approach the American and British Governments for licenses directly concerned with the relief of refugees in Europe and be the authority responsible for the fulfilment of condi- tions imposed. As there is no necessity for an immediate decision concerning this proposal, the Department will advise you further regarding it. Please advise the Department when the project under reference is submitted to the Executive Committee of the Intergovernmental Committee. 840.48 Refugees/4870 1/26/44 Regraded Unclassified COPY 279 THE FOREIGN SERVICE OF THE UNITED STATES OF AMERICA AMERICAN EMBASSY No. 12660 London, December 8, 1943. Subject: Refugee Relief Project Through The International Red Cross. The Honorable The Secretary of State, Washington. Sir: In pursuance of the Department's telegram No. 7287, November 17, 1943 and the Embassy's telegram No. 8328, November 29, to the Department, I have the honor to en- close herewith the text of a letter dated December 7, 1943 from the Director of the Intergovernmental Committee setting forth the present status of the proposal for relief of refugees in Europe through the International 840.48 REFUGEES/4870 Red Cross. It will be noted that the Director seeks clarification from the American and British Governments with regard to certain points, after which the proposal will be submitted to the Executive Committee. The Department's instructions are requested. Respectfully yours, PS/JB For the Charge d'Affaires ad interim: /5/ W. J. GALLMAN W.J. Gallman First Secretary of Embassy Enclosures: 1. Copy of letter of December 7, 1943 (171/98) from the Director of the Intergovernmental Committee. 2. Copy of translation of telegram from International Red Cross Committee to London Delegation. 3. Copy of Memorandum by Mr. Schwarts, dated November 14, 1943. CC/PB Regraded Unclassified 280 COPY Enclosure No. 1 to despatch No. 12660 of December 8, 1943, from the Embassy at London, England. INTERGOVERNMENTAL COMMITTEE Director: 11d Regent Street, Sir Herbert Emerson, London, S.W.1. G.C.I.E., K.C.S.I.,C.B.E. 7th December, 1943. 171/98 Dear Mr. Bucknell: In continuation of my letter No. 17/98, dated 26th November, 1943, relating to the question of relief to groups of surviving Jews in Europe, I am now writing to say that we have received through the London Delegation, a reply from the International Red Cross. This was in German, and was sent in cipher through the Swiss Legation in London. I attach a copy of the translation. (Enclosure I). You will see from this, first, that the Inter- national Red Cross is already in a position, through existing Red Cross Delegates, to undertake distribution and to exercise effective control in Rumania, Croatia and Hungary; second, that it is prepared to set up & Delegation for the purpose in Slovakia and, third, that 80 far as Germany and occupied territories are concerned, both the opportunities and agencies for affording re- lief are much more uncertain, except that relief can be given to internees in Theresienstatd. Even in these territories, how- ever, other opportunities are likely to arise from time to time. 2. In order to take advantage of existing and potential op- portunities, the International Red Cross has suggested that the sum of 300,000 Swiss francs should be placed at its disposal. This appears to be 8. reasonable request. It would render regular ac- counts, and would observe the other conditions stated by us, and mentioned in my letter to you of 26th November. You will observe, however, that the International Red Cross has laid stress on the difficulty of purchasing food and other requirements in neutral countries, and has, therefore, suggested that it should have authority to make purchases in Hungary and in Roumania, where it is still possible to obtain certain varieties of food. This sugges- tion raises a question of policy affecting the blockade, on which We are not in 8. position to express any opinion, but which will, no doubt, be considered by the American and British Governments. Regraded Unclassified 281 - 2 - 3. Before we are in a position to place the scheme before the Executive Committee, there are several points which require clari- fication:- First there is the question of the source, or sources from which the necessary funds will be furnished. In your letter of the 1st October, 1943, there was the suggestion that private funds were available in the United States, but that in any case your Govern- ment, in consultation with the British Government, would be pre- pared to regard the project, if approved by the Executive Committee, as one, the cost of which, should be shared equally by the American and British Governments, subject, of course, to previous consulta- tion with the two Governments before the project was sanctioned or expenditure incurred thereon. The matters requiring clarifica- tion from the financial point of view are, therefore, the following:- (a) What part of the funds, if any, will be supplied from private sources? and (b) are the British and American Governments prepared to share the cost in so far as it is not met from private funds? The further point relates to the functions of the Intergovern- mental Committee. It is suggested, as implied in your letter of October 1, 1943, that the Intergovernmental Committee should be the authority, (1) through which funds are placed at the disposal of the International Red Cross, (2) to which the International Red Cross would render regular accounts, and (3) which would be responsible to see that the condi- tions attaching to the grant are satisfied by the International Red Cross. We would suggest that this should apply not only to funds from Government sources, but also to funds, if any, from private sources. You will remember that one of the recommendations adopted by the Executive Committee at its meeting of the 4th August, 1943, was that "the Executive Committee shall be em- powered to receive and disperse for the purposes of preserv- ing, maintaining and transporting refugees, funds both public and private." The present occasion seems to be a suitable one to intro- duce the principle of utilising the Intergovernmental Committee, in suitable cases, for the expenditure of private funds, and since the manner in which the funds in this particular case Regraded Unclassified 282 - 3 - are to be expended is subject to certain conditions, and can only be made available in the countries concerned through licence, it seems reasonable that, if the Intergovernmental Committee is to be the authority responsible to see that the conditions are satisfied, it should be the agency through which funds are placed at the disposal of the International Red Cross. When the above points are clarified the case will be sub- mitted to the Executive Committee for consideration. 4. During the course of our enquiry, we have obtained some information regarding the relief which is already being given to Jews in Europe. We had the advantage of discussion, while he was in London, with Mr. Schwartz, Executive Head in Europe of the Joint Distribution Committee, and he was good enough to give us & memorandum of what his organisation is doing in this direction. I attach a copy of his note (Enclosure II). In this connection I may also refer to my letter to you of the 10th November, requesting certain information relating to licences granted by the United States Treasury for similar purposes. We have not received a reply to that letter, or to a similar letter which was addressed to the British Foreign Office. We are, therefore, not in & position to comment fully on this means of assistance, but we would suggest that, where it is organised and carried out by reliable and experienced bodies, such as the Joint Distribution Committee, it deserves all the encouragement that can be given, consistent with considerations of policy. It might be convenient for the Intergovernmental Committee to become the authority through which all private bodies should approach the American and British Governments for licences directly concerned with the relief of refugees in Europe, and to be the authority responsible to see that such conditions as may be imposed by those Governments are satisfied. This, however, is a matter of a more general character, which should not be allowed to delay the disposal of the specific case now under consideration. I have sent a copy of this letter to Mr. Randall. Yours sincerely, /s/ H. M. Emerson. Howard Bucknell, Jnr., Embassy of the United States of America, 1, Grosvenor Square, W.1. Regraded Unclassified 283 COPY Enclosure 2 to despatch No. 12660 of December 8, 1943 from the Embassy at London, ENCLOSURE I England. INTERNATIONAL RED CROSS COMMITTEE TO LONDON DELEGATION (Translation of Telegram received in German in cipher by Swiss Legation, London, on December 3rd, 1943) Your cable No. 2508 and letter No. 2671 clarified the questions referred to us. International Red Cross Com- mittee is grateful to have confidence of World Jewish Con- gress and Intergovernmental Committee. According to them, relief action is envisaged only for Jews, and not, as World Jewish Congress anticipated at the beginning, generally for people affected by war without discrimination as to race and religion. The difficulties pointed out in our No. 7636 con- cerning Jewish relief are due to the fact that the German authorities do not recognise any official immixture of the International Red Cross Committee in such matters, which they regard as having internal political character. There are, however, the following possibilities of relief action: 1. Roumania, Croatia, Hungary. The presence of Red Cross Delegate permits the setting up of distribution machinery and effective control. Needs in those parts are known to us. 2. Slovakia. We would foresee setting up of Delegation in 80 far as means put at our disposal would justify relief action. 3. Germany and Occupied Territories. Possibili- ties of action much more limited and in part recently entire- ly supporessed. Lack of funds prevented us frequently from starting relief work on behalf of Jews, particularly in Poland. At present Theresienstadt with a minimum of 50,000 Jews plus deportees from Denmark is probably only place where relief despatches would certainly reach recipients. Extension of relief action might open new possibilities which previous- ly had to be abandoned owing to lack of funds. We propose to Intergovernmental Committee to put a maximum of 300,000 Swiss Francs at our disposal in order to be able to carry out quick- ly relief actions as the occasion arises, and in 80 far as there is 8. guarantee to administer relief according to pur- pose for which designed. We would report in respect of each relief action carried out as well as in respect of goods purchased and despatched and about success. In view of the Regraded Unclassified 283 COPY Enclosure 2 to despatch No. 12660 of December 8, 1943 from the Embassy at London, ENCLOSURE I England. INTERNATIONAL RED CROSS COMMITTEE TO LONDON DELEGATION (Translation of Telegram received in German in cipher by Swiss Legation, London, on December 3rd, 1943) Your cable No. 2508 and letter No. 2671 clarified the questions referred to us. International Red Cross Com- mittee is grateful to have confidence of World Jewish Con- gress and Intergovernmental Committee. According to them, relief action is envisaged only for Jews, and not, as World Jewish Congress anticipated at the beginning, generally for people affected by war without discrimination as to race and religion. The difficulties pointed out in our No. 7636 con- cerning Jewish relief are due to the fact that the German authorities do not recognise any official immixture of the International Red Cross Committee in such matters, which they regard as having internal political character. There are, however, the following possibilities of relief action: 1. Roumania, Croatia, Hungary. The presence of Red Cross Delegate permits the setting up of distribution machinery and effective control. Needs in those parts are known to us. 2. Slovakia. We would foresee setting up of Delegation in so far as means put at our disposal would justify relief action. 3. Germany and Occupied Territories. Possibili- ties of action much more limited and in part recently entire- ly supporessed. Lack of funds prevented us frequently from starting relief work on behalf of Jews, particularly in Poland. At present Theresienstadt with 8. minimum of 50,000 Jews plus deportees from Denmark is probably only place where relief despatches would certainly reach recipients. Extension of relief action might open new possibilities which previous- ly had to be abandoned owing to lack of funds. We propose to Intergovernmental Committee to put & maximien of 300,000 Swiam Francs at our disposal in order to be able to carry out prink- ly relief actions as the occasion arises, and in so far 12 there is & guarantee to administer relief severing to N° pose for which designed. We would report in of such relief action carried out 18 wall " In respect of zooks purchased and desputabed 9.115 about Plea of the 284 -2- fact that possibilities of purchase from neutrals are extreme- ly limited and insufficient, it would be desirable to have authority to use funds for purchases in Hungary and especially Roumania, where it is possible to obtain dried vegetables, soups, farinaceous products (pates alimentaires), tinned goods, flour, cured meats, venison and fats. From neutrals medica- ments and pharmaceutical products are obtainable. We accept without any reservations conditions (1) to (4) of your cable 2508. Detailed letter will follow shortly. Regraded Unclassified 285 COPY Enclosure 3 to despatch No. 12660 of December 8, 1943, from the Embassy at London, England. MEMORANDUM BY MR. SCHWARTZ HELP TO GROUPS OF REFUGEES IN EUROPE The Joint Distribution Committee sends food parcels from Lisbon to the Jews in the Theresienstadt Concentration Camp and also to the Jews in Poland, particularly those in the ghettos. In the case of Theresienstadt the Czech Government sends food parcels to their nationals who are interned in that Camp while the J.D.C. sends its parcels largely to non-Czechs who are in the Camp. The Czech Government are sending to-day about 6,000 parcels a month to 3,000 of its nationals while the J.D.C. sends about 5,000 packages to 2,500 non-Czech nation- als. The packages contain sardines, dried fruits and almonds, and each package weighs about 500 grammes so that each in- ternee on our list receives 1 kg. of food per month. These packages are sent under License from the United States Treas- ury which has authorised the expenditure of 12,000 dollars a month for this purpose. Only food indigenous to Portugal may be sent under the Licence. The United States Legation at Lisbon must be satisfied that the parcels are reaching their proper destination. In the case of Poland the evidence of receipt has become scarcer and scarcer and because of this the sending of parcels has, for the time, been stopped. Later, communication has been taken up with the Jewish Community in Cracow which has acknow- ledged receipt of parcels addressed to them. They undertook further distribution of these parcels. It is hoped that through the Jewish Committee in Cracow, it will now be possible to dis- tribute more food parcels to Jews in Poland. Under our Licence, we are authorised to spend $12,000 8. month for packages to Poland. At the present time, the J.D.C. is sending about 1000 par- cels a month from Teheran to Polish refugees in Russia. Customs' duties and postage account for two thirds of the total cost of the packages. Sending a case with $12 worth of food costs in the neighbourhood of $40. Recently, we have been able to purchase food supplies and clothing in India, South Africa and Palestine for the refugees in Russia, and it is hoped that these supplies will make up about 20,000 packages to be sent between October 15th and December 31st, 1943. The purchase of Regraded Unclassified 285 COPY Enclosure 3 to despatch No. 12660 of December 8, 1943, from the Embassy at London, England. MEMORANDUM BY MR. SCHWARTZ HELP TO GROUPS OF REFUGEES IN EUROPE The Joint Distribution Committee sends food parcels from Lisbon to the Jews in the Theresienstadt Concentration Camp and also to the Jews in Poland, particularly those in the ghettos. In the case of Theresienstadt the Czech Government sends food parcels to their nationals who are interned in that Camp while the J.D.C. sends its parcels largely to non-Czechs who are in the Camp. The Czech Government are sending to-day about 6,000 parcels a month to 3,000 of its nationals while the J.D.C. sends about 5,000 packages to 2,500 non-Czech nation- als. The packages contain sardines, dried fruits and almonds, and each package weighs about 500 grammes so that each in- ternee on our list receives 1 kg. of food per month. These packages are sent under License from the United States Treas- ury which has authorised the expenditure of 12,000 dollars & month for this purpose. Only food indigenous to Portugal may be sent under the Licence. The United States Legation at Lisbon must be satisfied that the parcels are reaching their proper destination. In the case of Poland the evidence of receipt has become scarcer and scarcer and because of this the sending of parcels has, for the time, been stopped. Later, communication has been taken up with the Jewish Community in Cracow which has acknow- ledged receipt of parcels addressed to them. They undertook further distribution of these parcels. It is hoped that through the Jewish Committee in Cracow, it will now be possible to dis- tribute more food parcels to Jews in Poland. Under our Licence, we are authorised to spend $12,000 & month for packages to Poland. At the present time, the J.D.C. is sending about 1000 par- cels a month from Teheran to Polish refugees in Russia. Customs' duties and postage account for two thirds of the total cost of the packages. Sending & case with $12 worth of food costs in the neighbourhood of $40. Recently, we have been able to purchase food supplies and clothing in India, South Africa and Palestine for the refugees in Russia, and it is hoped that these supplies will make up about 20,000 packages to be sent between October 15th and December 31st, 1943. The purchase of Regraded Unclassified 286 - 2 - these supplies and the dispatch to Russia will cost about 140,000 Pound Sterling of which the J.D.C. is furnishing $90,000 and relatives in Palestine are putting up the balance. It is hoped that in time we shall be able to develop facilities for the dispatch of about 10,000 parcels per month to Polish refugees in Russia. The Lend-Lease Organisation has stock of goods in Iran intended originally for the Poles. Owing to strained official relations, the U.S.S.R. does not permit the importation of these goods through Polish channels but would grant import permission if the J.D.C. took the goods over. Negotiations concerning this are now in progress. Also the Polish Red Cross owns some stocks in Iran which they are not now able to send to Russia. We are negotiating with the Poles for the purchase of these supplies to be sent on a non-sectarian basis to Polish refugees in Russia. The Turkish Government has agreed to permit the export of 250 tons of food stuffs from Turkey to the 75,000 Jews actually in Transnistria. The goods will be sent out in individual packages, and the distribution will be under the auspices of the International Red Cross whose Ankara delegate is co-operating very closely. The J.D.C. has applied to the State Department for a Licence to remit funds for the purchase of these supplies. The State Department has indicated that this may be referred to the Inter-Governmental Committee for decision and has also indicated that, in future, all projects for the sending of food packages to any part of occupied Europe may have to be passed upon by the Inter-Governmental Committee. It is estimated that there are now some 30,000 Jews in Dutch concentration camps, particularly, at Westerbork. Our information is to the effect that the food situation is particularly bad, and we have applied for a Licence to send food packages from Lisbon. The matter is now pending. It is not possible to export food or clothing from Switzerland, but some medical supplies as well as an occasional shipment of powdered milk in bulk can be sent. The organizations in Switzerland, with the co-operation of the International Red Cross, occasionally send such bulk supplies to institutions in Poland as well 8.8 to Theresienstadt. Regraded Unclassified 287 - 3 - Summing it up, it can be stated that the chief diffi- culties in sending help to refugee groups in occupied Europe are:- 10 to get the parcels through to them. 2.) to obtain the necessary Licence. 3.) to find the necessary food supplies. In general, the International Red Cross has signified its readiness to help when a definite proposal is placed before them, and the necessary funds are provided for a particular project. Regraded Unclassified 288 FEB 2 1944 Dear Mr. Millihopfs I have received your letter of January x, 1944, enclosing a letter addressed to you by Dr. Fred I d I have referred Br. Wedseman's letter to m. John W. reble, Accistant to the Secretary, and arrangements have been ande to have Dr. Wedsomen - to Washington - February 4, 1944, to dissuse his propesals in detail. Sincerely yours, (Signed) H._S.Klotz 1 É Labor Standards Association, ⑉ Insure Securities Building, Philadelphia % Pt. FHedel,hd 2/2/44 Regraded Unclassified Jacob Billikopf, Director LABOR STANDARDS ASSOCIATION or 805 BANKERS SECURITIES BLDG. LOM PHILADELPHIA 7. PA. a January 26, 1944 L IN OTHER & co, Mrs. Klotz: I am sending a self-explanatory letter from red S. Weissman, Executive Secretary of the Selfhelp of es From Central Europe, Inc., in New York City. I dis- to trouble you, and if Dr. Weissman's request adds in way to the heavy burdens, then I will ask you not to oncern yourself with it. Should you, however, write to Weissman, may I have a copy of your letter. Kindest regards, as ever, Cordially yours, g.B. JACOB BILLIKOPF Regraded Unclassified STATION P.O. CANAL 6-soco Selfhelp OF EMIGRES FROM CENTRAL EUROPE, Inc. 139 CENTRE STREET January 25, 1944 Mr. Jacob Billikopf vaident: 805 Banker's Security Building PM TILLE Philadelphia, Pa. 'ine-Presidents' FAIDR. POLLOGE DUE STAUDINGES Dear dr. Billikopf: Tom STOLPS (massurer: I enjoyed it so much to have seen you again at the Annual MERMANN LEUSBOORP meeting of the National Refugee Service, end I am sincerely sorry loand of Directors: that I could talk to you only in such a rush. But your very DIA D. BALL friendly words and your mentioning of Mrs. Klotz's name have en- ANDOB SUIMITAN MARTHA couraged me to give some thought to B problem which has been JACOB BILLICOPF bothering 8 great many of our friends for quite a while. I am FREOR. W. BORCHARDT ELSA BRAENDITROEM-ULICH still more encouraged to ask you for your never failing essistance PRIEDRICH s. BRODNITZ since I have read about the appointment of the new Board for the PREDERICK H. BAUNNER ALBERT EINSTEIN rescue of refugees. There are still many thousand refugees in KATHERINE A. ENGEL HILOR PELIX France, as for EB we know, many of them in hiding, others still HERMAN L FILENE in camps, still others liberated and living in small villages, JAMES FRANCK WALTER PRIEDLANDER etc. I have seen quite a number of recent Red Cross messagés in MARIE GINESERO which these unfortunate people ask their relatives and friends KURT GOLDSTEIN EXHST BUNDELPINGER here for help. I am aware that, according to the "Treding with EDWARD HEIMANN the Enery Act", money must not be transmitted to enemy occupied HORACE M. KALLEN GABRIELLE KOPPELL countries. But I also know that some relief agencies, as e.g. HEIMBICH the American Joint Distribution Committee, have been given per- CARL LANDAUER EONA Laws mission by the Treasury to guarantee to local conmittees in enemy PHILIPP LORWEHFELD Leo occupied countries, 19ke Shanghai, that money borrowed by local ALEX LONGH groups will be refunded by the Joint after the wer. ADOLF HARDLD AUGUSTA Many emigres have friends and relatives in Switzerland who OTTO vould be able and willing to advence relief payments to needy EMILY CECILIA To frince, If only the knew that whit they might advence JOHN K. rutrinded +3,00 :ft.r the NOT. If the Treasury MM NATHA permitted QE to collect, from people living In this country, e OTTO Bream trust fund, blocked here for the duration, earmarked for the Emerg Fole purpose of reimbursing after the war people or groups in, INCRIP Switzerland that have advenced such relief payments to their dear FREDE LILLY 01:45 in Frince, I feel June that 19 could st.ve "eny lives. As FRIED for know, there is 20 len in Evitzerland egainst using Swiee HAND funds for such relief purposes in Frunce, end v.e have P very re- liable corresponding consitere in which could give FREE [rof giverates for the pro;e" Handling of this problem. year pr-teñil 11 you kindly looked tato this think metter there and Needleed Klotz to :- 20" PAY should that I should be tu an Appointment in Teshington with to the project -2- STATION -2- TELEPHONE CANAL 6-500 Selfhelp OF EMIGRES FROM CENTRAL EUROPE, Inc. 139 CENTRE STREET Mr. Jacob Billikopf Philadelphia, Pa. Januery 25, 1944 SUBM Such a trustfund would be useful not only for refug es in France but also with regard to people who escaped to Switzer- land from France and, recently, from Italy. You may know that more than 10,000 such refugees have crossed the Swiss border and 1. of Directorm- have to rely on relief, regardless of whether they are detained in camps or released and allowed to live privately In the country. MARTHA The Treasury permits transfers to be made to these people, but JACOB Page: W. SOSCHARDT only if effected from blocked dollar accounts, through 6 domestic ELMA bank. (We ourselves hold such E license and have e special PRESENT a. ESCONITE transfer service, in cooperation with the Quekers). However, the PREDERFOR H. BRUNNER ALBERT CHETON whole plan does not work out properly, because the Swiss Govern- N ENGEL ment does not allow payments to be made over there from the block^ HALDE PEUX HORMAN be PLEASE doller accounts. If money which is now being sent from blocked JAMES FAMILY dollar accounts to Switzerland could, instead, be put in E WALTER DEANDER MARK trust fund in this country, there might be e chance that KUBT GOL people in Switzerlend who are interested in alleviating the ENIST FINGER EDWARD - suffering of refugees In Switzerland were ready to advence those HORAGE a. KALLEN relief payments for the duration. You may he sure that the GARRICLLE KOMPELL KONNICH REGRATION realization of such F) plun could save a are t derl of money. CARL LANDLING It would cut short B. lot of red tspe, end, last not least, would EDNA Livel PHILIPP give encouragement to many victier of Nazi appression here nnd Lae Loss ALEX abroad. ADOLE I leave it to your judguent, der MT. Pillings, whether MARCH Austi you think this plan phantastic, or whether you think It worth- Orra while to submit the idec to ars. Klots. You helped je once EMILY 3 /etro Ego, to start the to I'm r.co, hd Joan I T14 wire proud the take Ider, nice, the e, Litu MATHER sounded so phantmacke, has seanshile OTTO transmitting funds for relief purposes to marry countries. T D* AVOER Douty sure you will find the proper WAS also this +1 C. For your conventence, enclose E copies as this Intion. LILLT PRIED Tanki in new i:ce 105 HAME for this dec, no FRES fsn/rl De 292 February 2, 1944 12:15 p.m. JEWISH EVACUATION Present: Mr. Pehle Mrs. Klotz H.M.JR: In seeing Miss Tully, the thing that seemed to make the biggest hit was the publicity. So I moved that up forward. There is 8 chance that I may get in this afternoon. So if I call, I am on the way to the White House. Don't have the thing in ten different rooms. In other words, have it so it can be ready. MR. PEHLE: How much time will I get? H.M.JR: You will get about a one-minute notice. That is what she gives me. It won't be until after lunch. She said, "If I call you, can you come on a minute's notice?" I said, "Yes." MR. PEHLE: All right. MRS. KLOTZ: If worse comes to worse, take what you have. H.M.JR: Where is the other thing, the agenda? I have that as number one of the first meeting. She was impressed with the fact that I said that both Stimson and Hull had left it to me. MR. PEHLE: That isn't what the agenda says. Are you talking about the agenda or the memorandum on the first meeting? H.M.JR: The agenda; that is what I said. Regraded Unclassified 293 - 2 - MRS. KLOTZ: I don't know why I am amused. H.M.JR: Pehle after a while--if he gets half of some sentence, he can interpret it. MR. PEHLE: That is what we do around here. Sometimes it leads us into difficulties, because sometimes we misinterpret. H.M.JR: The steno has the other half! id Regraded Unclassified 294 Luncheon meeting in the Secretary's Office February 2, 1944 Present: Secretary Morgenthau Mr. Crowley Mr. Cox Mr. Currie Mr. Bell Mr. White R. Currie submitted a draft of a statement to the President to be signed by Morgenthau, Hull and Crowley giving the results of the month's conferences with the British pursuant to the President's letter of January 5. Cox, White and Currie had previously gone over the draft, copy of which is appended. The Secretary, after examining the items in which there was definitive agreement with the Dritish to eliminate from lend-lease credit, expressed the disappointment that the total was not greater but said that he knew how difficult a job it was to get agreement on even the smaller list. Currie stressed the desirability of not making the report final but indicating that there were other items to be taken up later with the British. Currie referred particularly to the desirability of including iron and steel manufactures among the items to be discussed. If they could get part of that item eliminated it would remove the source of considerable friction arising out of the fact that England exported some semi-manufactured iron and steel items. Currie thought we might also add cotton to the program. It was agreed that it would be desirable to include those items as subjects for later exploration. Cox expressed doubt whether the State Department would approve of including those two items because of their magnitude and the complexity of considerations involved. Some changes were recommended in the draft statement and Mr. Crowley suggested that if Currie and White would fix it up right after the meeting, it could be signed that afternoon and sent to the President. It was so agreed. White inquired what was holding up the lend-leasing of silver to India. Cox explained that the State Department and FEA were in consul- tation as to whether it should be lend-leased to UK alone or to UK and India. The Secretary said that it was his understanding that it was to go to India but White explained that the State Department had informed the Treasury that India was too great a risk because of the possibility of political turn after the war and urged that the silver be lend-leased to the UK. White had taken it up with Bell, who was Acting Secretary, and it was agreed that we should inform FEA that in view of the State Department position we withdraw our request that the lend-leasing operation Regraded Unclassified 295 Division of Monetary Research - 2 - be made to India rather than to UK notwithstanding the discussion which had taken place before the Silver Committee when the matter had been raised before that committee. White stated that the shipment of the silver to India was becoming more urgent because we were planning not to grant their request for an' additional 65 million ounces which we had just received and that they would run short of silver in a few months unless this 100 million ounces were made available. Mr. Crowley instructed Cox to push the matter. It was also agreed to send a letter to Secretary Hull requesting a meeting on the subject of lend-lease aid to the French. The draft letter was submitted, accepted and later the Secretary signed it. H. D. White HOW Regraded Unclassified Treasury Department 296 Division of Monetary Research Date February 2 1944 To: Secretary's Files This matter was discussed at lunch attended by Secretary Morgenthau, Crowley, Cox, Currie, Bell and White. The Secretary signed the letter, copy of which is appended. The letter was sent by messenger to Secretary Hull that same afternoon. A memorandum giving some further details on the matters raised in the letter to Secretary Hull is appended. H. D. White MR. WHITE Branch 2058 - Room 214 Regraded Unclassified 297 FOREIGN ECONOMIC ADMINISTRATION OFFICE OF THE ADMINISTRATOR WASHINGTON 25, D. C. My dear Secretary Morgenthau: Attached hereto is the original and one copy of a proposed letter to Secretary Hull. You will remember that we discussed the idea of sending such a letter with you. This proposed letter has been cleared with Harry White and with Dean Acheson's office. It is satisfactory to both. I have signed this proposed letter and, if it is agreeable to you, I would appreciate it if you would also sign it and have it transmitted to Secretary Hull. Sincerely yours, Administrator. Leo T. Crowley, Ceed The Honorable The Secretary of the Treasury. Attachment Regraded Unclassified 298 FOREIGN ECONOMIC ADMINISTRATION OFFICE OF THE ADMINISTRATOR WASHINGTON 25, D. C. FFR 2 1944 My dear Secretary Hulls There are two questions of major importance on the relationship between the United States and the French Committee of National Liberation which we think ought to be discussed by yourself and ourselves. First, there is the question of possible use of the gold and dollar assets of Metropolitan France for the furnishing of supplies to Metropolitan France upon its liberation. Second, there is the question of how payment is to be made by the French Committee of National Liberation for civilian supplies furnished by us to French North and West Africa under the Modus Vivendi Agreement of September 25, 1943, in light of the possible scarcity of gold and dollar assets avail- able to the Committee. We suggest that a meeting be called at an early date to discuss these problems, those in attend- ance to include us three together with appropriate members of our staffs. Sincerely yours, Henry Morgenthau, Jr. Secretary of the Treasury Leo 1. Growley Administrator The Honerable Foreign Economic Administration The Secretary of State Attachment Regraded Unclassified 299 COPY SECRET February 3, 1944 MEMORANDUM FOR THE PRESIDENT In accordance with the suggestion in your memorandum of January 5, 1944, the Foreign Economic Administration has now discussed with tne British representatives the larger part of the list of controversial items heretofore supplied to the British on lend-lease credit. The following comments and the attached list indicate the present status of the various items: The British have signified acceptance of the elimination from lend- lease aid of the items shown in Group I, which would total approximately 145 million in 1944. Discussions with the British are under way or pending with respect to the items shown in Group II, These items would total approximately 143 million in 1944. The Foreign Economic Administration wishes, subject to further checking, to eliminate these items from lend-lease Lid. The total of the items in Groups I and II which will or may be removed from lend-lease aid would be approximately 2888 million. Convincing reasons against the elimination of the items shown in Group III were developed by further investigation. The Foreign Monomic Administration, therefore, proposes to continue them on lend-lease aid for the present. The dollar volume of lend-lease aid for such items in 1944 will be approximately $245 million. The Foreign Economic Administration is also considering the elimina- tion from lend-lease aid of raw materials and products, of types used by the United Kingdom in commercial exports, which have given rise to fric- tion; offshore purchases other than those listed; supplies for South Africa; and certain other controversial items. It is believed that the actual and contemplated revisions will greatly strengthen the lend-lease program. The Secretary of State The Secretary of the Treasury The Administrator of the Foreign Economic Administration Regraded Unclassified 300 Group I. Items Whose Elimination Has Been Accepted by the British 1. Offshore Purchases Caribbean sugar and molasses $55,000,000. Iceland fish 25,000,000. 2. Material Procured in the British Empire Alcohol for the U.K. so far as available in Canada 22,000,000. 3. Petroleum Products for Empire Air Training Program Shipping and refining costs of U.S. petroleum in Canada 15,000,000. 4. Storage, Inland Transportation Charges and Ocean Freight on Non-Lend-Lease Cargoes Originating in the U.S. 23,000,000. Originating in Canada (except on food, strategic raw materials and combat items) 2,000,000. Originating in South America (except on lead, graphite, fertilizers and mica) Negligible 5. Savory Food Products 3,000,000. Total for Group I $145,000,000. Group II. Items on Which Discussion with the British is Under Way or Pending 1. Costs in the U.S. of Petroleum for Empire Air Training Program in Canada 9,000,000. 2. Offshore Purchases of Petroleum 25,000,000. 3. Ocean Freights on Non-Lend-Lease Cargoes Caribbean sugar 25,000,000 Canadian loadings 35,000,000. Refrigerator ships from the Argentine 5,000,000. 4. Charter Hire on Dutch Vessels under Charter to the British 3,500,000. 5. Civilian Goods for British Areas in the Middle East 5,000,000. 6. Civilian Goods with Civilian End Uses (e.g., textiles, light bulbs, furniture, hardware) 25,000,000. 7. Jusiness Machines and Office Equipment for Non-Military Purposes 8,000,000. 8. Building Materials and Construction Equipment for Non-Military Negligible Purposes 9. Savory Food Products (other than those in Group I) 2,000,000. $142,500,000. Total for Group II Regraded Unclassified 301 - 2 - Group III. Items Which the FEA Proposes to Keep Under Lend-Lease Aid for the Present 1. Tobacco for the Armed Forces $ 40,000,000. 2. Special Pulp and Paper Products (procurable only in U.S.) 15,000,000. 3. Agricultural Machinery 15,000,000. 4. War Shipping Administration Ships Made Available to Sea Transport Service 25,000,000. 5. War Shipping Administration Tankers for Petroleum and Petroleum Products 150,000,000. Total for Group III $245,000,000. Regraded Unclassified 302 February 2, 1944 2:44 p.m. HMJr: Hello. Randolph Paul: Hello. This is Randolph. HMJr: Yeah. P: I want to send in to you a statement on the Revenue Bill. I was afraid you were going to be going over to the White House and I want to be sure to have it in your hands in case you want to use it. HMJr: Well, I was to see him this morning and he postponed it until tomorrow morning. If you'll give it to -- where are you now? P: I'm in my office. HMJr: Well, give it -- send it in to FitzGerald and he'll give it to me. P: All right. I -- We -- we'll go on working on it but we've very much improved the draft yesterday. HMJr: Good. P: And the only one of the bunch I've heard from on the yesterday's one is Fred Smith, who thinks it's fine with a couple of suggestions. HMJr: Good. P: And they all have this one but I'm sure Fred will think this is all right because he thought the one inferior to it was all right. HMJr: Righto. P: Okay, well, I'll send it right in, then, because I want to have you have it. You'll be here for a while, won't you. I'll be wanting to see you before HMJr: Yeah. I want to -- I'll see you before I go. P: Okay. Regraded Unclassified 303 / Statement to accompany signature of the Revenue Bill of 1943 2-2-4 The Revenue Bill of 1943 is before me for signature. I cannot reconcile this feeble effort to meet the costs of the war with the gigantic military offensives that lie directly ahead. I find in it no real support for our program to stabilize the cost of living. I find in it no assurance to our fighting men and women that we are ready to bear our share of the war costs now instead of postponing the day of settlement until they come home. This bill is a vote of no confidence in the American people. I am confident that they are able and willing to pay the taxes which this bill refuses to impose. I am sure that they recognize taxes as an instrument for speeding their fighting sons and daughters back from the battlefronts. A realistic wartime tax measure would have provided more than $10 billion in added revenue. This bill offers less than one-fifth of that amount. A realistic tax bill would have plugged up existing tax loopholes. This bill opens up new loopholes. A realistic bill would have simpli- fied our tax laws. This bill retains their complications. Regraded Unclassified 304 - 2 - Incredible as it seems in time of war, this bill makes unpardonable tax concessions to self-seeking special-interest groups. It cancels $1.1 billion of social security tax increases already scheduled by law. It was initially agreed in the Congress that the tax bill was to be limited to the raising of revenue and the simplification of taxes. But selfish pleas for tax con- cessions prevailed, and the agreement was ignored. As the revenue program was presented to the Congressional committees, it was dedicated squarely and solely to the welfare of the American citizen. As it comes to my desk in the form of H. R. 3687, it bristles with special privilege. The general welfare of the American citizen has been neglected in a scramble of the special interests to obtain tax favors. The mining interests are granted an enlargement of the objectionable percentage depletion allowances. The lumber interests are granted special low rates of taxation on wartime profits from timber cutting. Speculators in securities of many bankrupt corporations will be unjustly enriched by provisions granting inflated tax deductions and credits to these corporations on reorganization. Operators Regraded Unclassified 305 - 3 - of natural gas pipelines are granted wholly unwarranted relief from excess-profits taxes. Commercial air lines are granted an unjustifiable extension of the tax subsidy on their air mail contracts. I cannot but deplore this alarming trend toward special- interest legislation. Sponsored by clever lobbyists and disguised in technical language, such legislation has been growing in volume from year to year. As a result, certain irresponsible groups are escaping their fair share of war- time taxation. The cumulative effect of these indefensible tax subsidies is to corrode our tax system. They impair its efficacy as an instrument to raise revenue and fairly distribute our tax load. It is high time that the creation of new loopholes be stopped and that the loopholes already opened be closed. Who will bear the tax burdens from which profiteering corporations are being freed? Insofar as the loss is not made up by other war taxes, an unfair share of those burdens will be placed on the shoulders of our returning service men and women. Insofar as this bill does increase taxes, it places an unfair share on the lower income groups Regraded Unclassified 306 - 4 - because of its heavy reliance on excises. The Revenue Bill of 1943 fails the American taxpayer in other respects. He has been promised that tax laws and returns will be drastically simplified. This bill does not make good that promise. It ignores the most obvious step toward simplifying taxes. That step would be to eliminate the clumsy Victory tax. But for fear of dropping from the tax rolls those taxpayers who are at the bottom of the income scale, the bill retains the Victory tax. I cannot reconcile this unwillingness to forego a modest sum from our poorest taxpayers with the ready response to pressures of special-interest groups. Other opportunities for simplification were also ignored. For example, withholding at graduated rates, which would relieve millions of the task of filing declara- tions of estimated income, was not adopted. The American taxpayer has every right to expect action on these and other measures to simplify his taxes. In view of our pressing revenue needs, it is unthinkable that tax increases already provided by law should be set aside. Yet, the bill before me does precisely this by Regraded Unclassified 307 - 5 - freezing social security payroll rates. It wipes out $1.1 billion of payroll tax revenues. It also weakens the social security system. With employment and wages at record levels, claims against social security trust funds are building up at record rates. Unless payroll taxes are increased, employee claims will far out- strip payroll tax contributions. The renegotiation provisions of this bill as finally adopted by the Congress represent a great improvement over earlier provisions. However, one serious defect remains. The purpose of renegotiation is to prevent excessive war profits. This bill fixes a date for the expiration of renegotiation. The provision for a termination date offers an incentive to delay vital war production and sanctions war profiteering after that date. Profiteering late in the war is no less offensive than profiteering earlier. Renegotiation is necessary throughout the war. No expiration date prior to the end of the war is defensible. In view of the glaring defects of this bill, it is & close question whether its enactment is preferable to retention of the present law. However, the need for wartime Regraded Unclassified 308 - 6 - tax revenues is 80 urgent that I am unwilling to reject & measure which adds to our tax revenues even the small amount contributed by this bill. Accordingly, I have signed the Revenue Act of 1943. But I strongly urge the Congress to face its responsibility. That responsibility is to raise adequate revenue, to eliminate special privileges, and to provide real simplicity for millions of small income tax- payers. In the interests of strengthening the home front and of speeding the day of Victory, I urge the earliest possible action. Regraded Unclassified 309 February 2, 1944 3:15 p.m. WAR BOND PROGRAM Present: Mr. Bell Mr. Coyne Miss Elliott Mr. Englesman Mr. Houghteling Mr. Hall Mr. Lee Mr. Lane Mr. Gamble Mr. Shaeffer Mr. Smith Mr. Haas Mr. Lindow Mr. Tickton Mrs. Klotz H.M.JR: Mr. Gamble, this is a family meeting. I watch this thing through Haas' office. It looks like it is a little disconcerting. Maybe everything is all right, but I don't know. Last week this young fellow (Tickton) said we ought to hit at the beginning of the first of February a minimum of eighty million 8. day for B Bonds. We are not. With all this business, if we don't do it now - I mean, when he said it he didn't know about the Jap atrocities. He called up five larger Federal Reserves and their decks are clear, so there is no backlog. That isn't the trouble. My spies tell me that you have been busy since I called you, checking. I have spies. (Laughter) I would be glad to know what you have heard. MR. GAMBLE: All right, sir. Regraded Unclassified 310 - 2 - H.M.JR: Everything goes along. You don't see me. You can sleep until eight-thirty as far 8.8 I am concerned, if the children don't waken you up. But rather let's be sure than sorry. So I will be glad to hear what you have been doing since I talked to you. MR. GAMBLE: I think it might be well for me, be- fore I have these people tell you what we have checked up on, Mr. Secretary - - we keep some figures of our own. he use a little different arithmetic. MR. BELL: They include the backlog, don't they? MR. GAMBLE: Up until yesterday we had a billion eighty-five million dollars of E Bonds. From that day, from a comparable day in the Third War Loan Drive, following that day, we had twenty-one days where we averaged eighty-four million dollars a day, following that date in the Third War Loan Drive. Now, that didn't come in as eighty-four million dollars a day, but it came in in this way: The first day we had ninety-eight million, then dropped to seventy- eight million. Some days that dropped to seventy-six million, but we averaged, in twenty-one days, eighty- four million dollars from that date forward at that period of the drive. We need to average eighty-four million dollars a day in the next twenty-four days in order to get a billion nine hundred and twenty million dollars, which would put us over our three. From everything we know and have learned in the field - certainly we are better organized - - there is evidence of it, which you will hear in detail on all fronts. There is no reason to believe that we don't have as many sales coming in for the Fourth @ar Loan from this day onward as we had in the Third War Loan. Regraded Unclassified 311 - 3 - My own opinion is, and this is only an opinion, that we have more than that, but I think we are not being at all unreasonable when we assume that the flow of sales and reporting will be equal to the Third War Loan from here in. If it is, we will make our three billion dollars. I would like to repeat that. We had twenty-one days - in the last twenty-one days of the reporting period of the Third War Loan Drive we averaged eighty- four million & day. We have twenty-four more reporting days left in the Fourth War Loan Drive and we need to average only eighty million a day. H.M.JR: Do you mind, as long as we have our own statistics-- MR. HAAS: They are all prepared. MR. TICKTON: That is right. The point that Ted started to make, which I made to you last weak, is in order to average eighty million dollars a day, starting about this area, you are going to have to run about five, six, or seven days at about a hundred million a day. February 23 to 29 will be & period after most of the reporting has been accomplished, so that from here on you have got to average about a hundred million dollars a day, or even a little better. Now, the problem that bothers me at the moment is that in order to do a hundred million a day, that is rather exceptional. We only had about five or six times in the Third War Loan when we had that peak. Skipping the first time when we hit the peak because we overlapped between mail and wire reports, on the other days that the Feds were able to report 8 hundred million dollars, they were somewhat backed up in their handling of their E Bond stubs. They only hit a hundred million when they worked at a very rapid rate and sometimes required some overtime to process that amount. Regraded Unclassified 312 - 4 - Now, in talking to the six of them between last night and this morning, none of them were backedup, and that is a trifle disconcerting, because in this week, and beginning of next week, you have got to get your hundred million dollars or you won't get them except on the last day or two after the drive. So, as this Beam Chart shows, we are on the beam at the moment. Any little thing, one day off, for example, might throw us at somewhat of a loss. We had hoped that we would have the E Bond figure for today to see how it tied in, but because-- H.M.JR: Well, the point I want to make to you ladies and gentlemen is that we have never made our E Bond quota, and this time we have just got to. MR. GAMBLE: We are going to make it, Mr. Secretary. H.M.JR: We didn't look for this horrible Japanese atrocity, and the thing has come our way. With all that extra stuff, plus the landing south of Rome, plus the landing in the Marshall Islands - all of this excit- ing war news - if we can't do it this time, we never can do it. MR. GAMBLE: You won't feel any effect. H.M.JR: May I interrupt you a moment? Before using the three billion dollar figure in Cincinnati, I called up Theodore Roosevelt Gamble and got his O.K. MR. GAMBLE: That is correct. You won't feel any business from the Japanese atrocities until this time next week. Wouldn't be any of it reported that will show. Is that correct? MR. TICKTON: That is right. MR. GAMBLE: Now, they did have, yesterday afternoon in the New York Federal Reserve Bank, three hundred and Regraded Unclassified 313 - 5 - twenty-seven million, seventy-six two and a quarters; two hundred forty-four million two and a halfs; seven- teen million C's; sixteen million E's; seven million F's, and thirty million G's. They had that much money on hand in the Federal Reserve Bank which they had not reported. That doesn't mean that they were backed up that much because they will carry it over until today. MR. TICKTON: They ordinarily report a figure some- where between twelve and two o'clock. MR. GAMBLE: What I mean is that nothing has been hanging around for two or three days, but they didn't go on to say, "We had this much money come in today which we haven't touched yet." Burgess told me over the phone an hour ago, that if he had all of his money credited that was in the Federal Reserve Bank in New York now, he would have fifty percent of his quota. He is content that it is not credited, because it is a good way for it to come through. A sixteen million dollar E-day is good there. H.M.JR: The only thing I am worrying about is, I want my three billion E, see? MR. GAMBLE: I understand that, sir. Now, let me tell you another reason why your E Bond reporting is likely to be slower in this drive. In the Third War Loan Drive, we depended pretty much on the banks for the issuance of securities. We didn't have plant quotas uniformly, not as many of them - not as much activity outside of the banks as we have now where issuing agents are handling the sales. We will distribute twenty per- cent of our securities in this drive through theater box offices - twenty percent of the securities. We will distribute probably better than fifty percent of them through issuing agents through corporations, be- cause of plant quotas. We will feel none of that, Mr. Secretary, until the 15th of February. It will be the middle of February before you feel the plant quotas. Regraded Unclassified 314 - 6 - H.M.JR: But you see, this fellow, Tickton, right or wrong, told me the thing would be settled on February 1 and 2. MR. GAMBLE: Well, I think for those of us who have followed this very closely - and I know you can't trade on my optimism - but in my own mind, Mr. Secretary, it is settled. There is no question in my mind but what in twenty-four days we will roll up our three billion dollars, because it is inevitable. If it ever can be done in this country, with the kind of an organization we have, it will be done this time. It just couldn't be any other way. Our efforts in the Third War Loan Drive would account for a billion seven after this period of time; then certainly we have been set up this time to account for a billion nine. I think that is conservative. To give it to you more specifically, I am going to let Ralph tell you, first of all, about his plants that he talked to. He made checks on eleven States. MR. HAAS: Could I ask Ted a question? MR. GAMBLE: Yes. MR. HAAS: Ted, if you do a job on the same level as the September, it would seem to me - we had a dis- cussion of these figures in my office this morning - it would seem to me you should substantially exceed the three billion. MR. GAMBLE: I think you will, George. MR. HAAS: You have more money there; you have a better organization; and you have limited buying. MR. GAMBLE: That is right; I think we will. But I haven't been called on to make any more than that statement. MR. HAAS: I am not forecasting. I am a little bit concerned. Regraded Unclassified 315 - 7 - MR. GAMBLE: I think we will. H.M.JR: George, I will take three billion and like it. MR. HAAS: So will I, Mr. Secretary. H.M.JR: That is why I didn't want to sign that statement last night, patting the big corporations on the back. MR. GAMBLE: What George has said is right; we should exceed the three billion with the situation as it is today. MR. HAAS: But you should be getting ahead of that beam quite a bit. MR. GAMBLE: That is right, but you must remember, George, that we have no reason to believe that the banks can handle more than a hundred million a day. There is no evidence of that. Now, that is not altogether the banks' fault. It is just the way the thing works out mechanically, and the way the reports come in from issuing agents, the hundred million is about the figure. H.M.JR: But we have allowed from about the 18th to the 30th. MR. GAMBLE: The 15th to the 29th, to have that extra time. You won't get it in any greater chunks, Mr. Secretary. H.M.JR: What have the boys and ladies been doing? MR. ENGLESMAN: I have to report that I called up and got in touch with the men in charge of pay rolls. I called up eleven key spots, and I tried to select and get a cross-section of the country. For instance, I called Rochester, New York, where there are a lot of key industries - Eastman Kodak, Bausch and Lomb, Rochester Products, and so forth. Regraded Unclassified 316 - 8 - Forty-four firms there have assumed a quota of seven and a half million dollars, they employ seventy thousand people. As of yesterday they had achieved seventy percent of that quota. Some of the firms are over already, and in their opinion there is no question about going over. But again, and I will repeat this several times because in every place they brought this to my attention, in the last War Loan Drive we tried to get all the busi- ness that came in on pay roll, in during the month of September; this time they are allowing the employees to deduct for extra bonds in the months of January and February, and you won't get your final reporting until the 15th for those extra deductions, because they will only purchase the bonds when they have accumulated the money. In Indiana, to give you an example, the International Harvester has gone over its quota of a hundred dollar bond per person. The Evansville Shipyards put on a very unusual drive. They didn't even have a meeting, but they went over their quota in six days, a million five hundred thousand. The Delco people in Indiana reported to me there is no question, fifty-one million two hundred thousand quota, and they think that they won't be finished reporting until the 25th of February. In Connecticut they said the snow ball is just beginning to roll. For instance, one of the big con- cerns - as you know, Mr. Secretary, United Aircraft is just in the middle of its drive. It won't be able to report its accumulations until later in the month. In the meantime, Electric Boat is over & hundred percent per person, with twelve thousand employees - the New England Bell, which has twelve thousand employees, and the Scoville Company, and numerous others there. In Michigan I got a varied report - a good one, but they said it requires lots of pounding. For instance, the Ford Plant, which has over one hundred and twenty- five thousand employees there, has a quota of sixteen Regraded Unclassified 317 - 9 - million dollars. Now, most of that is being bought in extra bond purchases over pay roll savings, and they tell me that they will start reporting on that, really, on the 15th of the month. The Excello Tool Company, a smaller company, ten thousand employees, have gone over. General Motors, which last time didn't give us anything out of pay rolls, extra bonds, didn't put on B. drive, have consistently put on drives in all their plants with some three hundred and some-odd thousand people, but around Detroit and that area, about two hundred thousand people. They report way over on their drive. One of their departments hit two hundred percent of their quota. They said in some of the smaller instances, where they are laying off people, they are not going to make it. But the last thing they told me there was that the plants will take care of themselves. In Pennsylvania we have another report which is similar. To give you an example of the work still to be done on that, in Philadelphia they are planning fifteen hundred rallies in plants. They have only had seven hundred of those, and won't complete those until the end of the week. We won't be able to get reports there until later in the month. In Oregon - Ted didn't know I called Oregon, but I thought I would find out what is going on out there. H.M.JR: Just & coincidence. MR. ENGLESMAN: Yes. Swan Island, two and a half million dollars and they have made their quota; Oregon Ship isn't doing as well. Florida, Maine, Tennessee, some of the smaller States, have all put on drives which they didn't in the last War Loan. They report very favorably. I got 8. wire just before I left, from Texas, where the big shipyards down there are now deducting on the basis of seven hundred and twenty thousand dollars a month, in January sold four hundred thousand dollars' Regraded Unclassified 318 - 10 - worth of extra bonds for cash to their employees. They all report the same thing. I asked them when I spoke to them - I said, "Now let me have it honestly, straight from the shoulder. I don't want just a pretty story." And without exception they are confident that they will make their plant quotas, which represent about sixty percent in these States of the E Bond quotas of these States, just in the plants. But without exception, also, they warned us that they will not have the reports until later on this month. Some of them will, but very few. Now, that is the story I got from those eleven spots and those few extra spots that I called. MR GAMBLE: Of our sales, Mr. Secretary, the pay roll should account for about & billion and a half dollars of the E Bond sales. H.M.JR: I am not going to comment on it, because until the money is in Danny Bell's hands it is meaning- less to me. MR. ENGLESMAN: As you said, until those amounts come in that day, you don't count them. But I think we all agree that probably, except for the E Bond sales reported in January, that is 8. pretty accurate picture of the thing - or wouldn't you? MR. TICKTON: I don't know. It remains to be seen when it comes in. It sounds good from a great many places. Still and all, the figures that you quoted are relatively small figures. The only point I am making is you still have 8. hundred million dollars a day to do for the next six or seven days, even if some of it comes in late. The thing I worry about is a situation that happened in Michigan the last time. It won't happen again in Regraded Unclassified 319 - 11 - Michigan, because they got stuck with enough E Bond sales to prevent them from making their quota. They had the stubs in some bank and never got to the Fed. Those things can happen very easily with respect to our Evansville Shipyard. I talked to Mr. Pulliam yesterday. They don't expect to issue the bonds until February 27. That is not time enough to assure their getting those bonds into the Fed by February 29. They might do it, but it is very dangerous to - say you issue your bonds on the night of February 27 and get them over to the Fed on the 28th to get them counted-- MR. ENGLESMAN: They have sent out instructions to every plant. MR. GAMBLE: Ralph's point was, Sid, assuming that everything he said is true, you wouldn't have that information now. AS a matter of fact, no matter how you-- H.M. JR: If there are many Evansville Shipyards only going to report then, you ought to do something about that. Let's move along. MR. HALL: I have got a couple of specific figures from the field. All of the banks of Cook, Lake, and DuPage counties, Illinois, now report daily. They have accurate reports on their sales. These are paid for at the banks, and not necessarily cleared at the Fed. In the September drive, during the period of time equivalent to January 18 to February 1, the E Bond sales by those banks were fourteen and a half million dollars. From January 18 to February 1, in the same banks, they were twenty-two and three-quarters million, an increase of fifty percent. The number of sales, which included the sales of all kinds of bonds - not restricted to E's - increased in the same scoring from one hundred and fifty-two thousand to two hundred and forty-nine thousand, a sixty percent increase in numeri- cal orders. Regraded Unclassified 320 - 12 - The Chase National Bank, which is the largest in the country, has sold to date in this drive, E Bonds to thirty thousand people in the amount of three million eight hundred and twenty-five thousand, or an average of one hundred and twenty-seven dollars. In the Third War Loan, during a comparable period, their sales numerically were larger, thirty-two thousand, but dollarwise were less. In the Third War Loan they were selling at the rate of one hundred and six dollars per sale, and this time one hundred and twenty-seven dollars per sale. H.M.JR: That disregards the fact that we counted the first eighteen days of January, doesn't it? You are giving yourself the credit of that. MR. HALL: No, I think in both cases they are taking credit for everything from the first of the month. MR. GAMBLE: September and January. MR. HALL: I think SO. The insurance employees in New York - the insurance offices - claim to have thirty thousand people partici- pating in a drive to sell bonds to individuals. They have made eighty-eight thousand sales, an average of one hundred and eighty-five dollars 8. sale, which is a much better rate than they did last time. It is half as much as they did last time in the whole drive period. The OCD house-to-house canvass in Chicago, the average sale is running one hundred and ninety dollars. Those are about all the straws in the wind I have picked up. MR. GAMBLE: You might add the National City Bank. They have sold ninety thousand bonds up through Monday, as against a total of one hundred and eighty thousand in all of the Third War Loan Drive, and are very pleased with it. Regraded Unclassified 321 - 13 - MR. HALL: Orders? MR. GAMBLE: Ninety thousand orders in that bank. H.M.JR: Miss Elliott? MISS ELLIOTT: I checked on North Carolina, Indiana, Michigan, and got excellent reports from all of them. North Carolina - of course, these women didn't deal in the figures because they don't handle that - but the number of people working is increasing. She is having less difficulty in keeping the whole machinery going all over the State. One very interesting thing she said was that in the rural counties of North Carolina the E Bond sales are increasing, and are much higher than they were in the last drive. Now, in Missouri, Mrs. Devin told me that they have sold seventy percent of their total quota in the rural districts, and most of that is in E Bonds from the rural districts there, which, I think, is a good sign. But all these women felt encouraged; they didn't feel worried about it, and were particularly enthu- siastic because they said the momentum of the drive was increasing. I thought that was important in terms, particularly, of the E Bonds. In Indiana Miss Butler reported that of course, the women there are depending more on booths for their individual sales. H.M.JR: Booze? MISS ELLIOTT: Booths. They might want some booze sometime. She said that the number of workers in the booths was increasing and that the number of sales was increasing in the E Bonds there. Regraded Unclassified 322 - 14 - MR. GAMBLE: Mr. Lee, who is in charge of the motion picture special events. MR. LEE: In lieu of any system of daily reporting, which we don't have for obvious reasons, they competitively pad their reports too much about the sales you people are making. Indications are, in a long list of excerpts from general correspondence and messages, that we are much more highly organized, Mr. Secretary, than we have ever been before. We are traveling at a faster momentum. It is highly accelerated. There are some indications that you are not interested in reporting on what has already been done--you have that up here--but some indications of what might be expected from us in the remaining weeks. Let's take Northern California, where one division of the Fox West Coast theaters, on which records are a little more accessible to us through the chairmanship of our drive. There are forty-eight thousand seats in Northern California, reaching down to and including Fresno. They have already sold forty-three percent of their quota of 8 bond a seat. And that is already slightly under four times the total number of E bonds that were sold throughout the whole Third War Loan. H.M.JR: You mean, those theaters--it comes from the same theaters? MR. LEE: That is right, sir. Now then, bond premiers is 8 thing that is directly connected. H.M.JR: What denomination is & bond a seat? MR. LEE: Any denomination, but all E bonds. Of course, bond premiers is a thing directly connected with direct sales from our theaters as issuing agents. In the entire Third War Loan there were approximately thirteen hundred of those bond premiers throughout the nation. In this war loan twenty-eight hundred and eighty are already scheduled, and less than one-fifth of those have been held, which indicates that the majority of those are yet to come. Regraded Unclassified 323 - 15 - One observation is pertinent to that trend of thought. My people indicate that most of our efforts up to now have been largely to try to help implement standard and regular programs that are arranged by your War Finance Chairman and that our special promotions and bond premiers and free movie days and these kinds of things are largely yet to come and that the next two weeks probably should be more productive weeks from our program than the two that have just ensued. MR. GAMBLE: There are eleven and- a half million seats, Mr. Secretary, in the country. MR. LEE: For example, in Detroit we have one hundred and nineteen more issuing agents than we had in the Third War Loan. MR. GAMBLE: The Detroit area? MR. LEE: Yes. MR. SAMBLE: Mr. Houghteling. MR. HOUGHTELING: As far as labor is concerned, I can't quote in percentages, because we don t deal in quotas and figures, but up to the 18th, the labor situation was very jittery on account of the railroad situation. It was suddenly cleared up, and everybody, instead of feeling thoroughly confused, got into the stride of things. My reports now are better than they have ever been. I have been in touch within the last couple of days with my people in the field, and they say that the labor people are doing a better job than they have ever done before, that there is less discontent and questioning, that they are going ahead, that the labor people in the plants all think the quotas can easily be reached. In the railroad field, we won't begin to feel this retroactive pay until pretty well along in the month. A lot of the railroads have gotten out special authorization cards to be signed by their employees and allot fifty, Regraded Unclassified 324 - 16 - sixty, seventy, or eighty percent of their retroactive pay so they can collect it direct from the check. Along toward the end of the month, I think, we are going to get & lot of that retroactive pay. There is altogether two hundred and five million dollars of that retroactive pay that is to be paid out, and railroad people seem to think we will get a very large part of it. Some of it won't come in in February at all, but I think we will have 8 distinct spurt at the end of the drive from that very tangible amount of money which is being paid out. MR. GAMBLE: Checking with Lawrence's people was just a double check. H.M.JR: But no places where labor says they are being held back? MR. HOUGHTELING: I haven't found any. H.M.JR: Not on a committee? MR. HOUGHTELING: I haven't found any gripe at all. H.M.JR: Give it to me in writing, will you? MR. HOUGHTELING: I told then the first thing a labor union does is establish & grievance committee. Apparently they aren't working this time at all. H.M.JR: Did you have any response to our talk from Bridgeport? MR. HOUGHTELING: Yes, they are very keen about it. It went over fine. H.M.JR: Did you get anything in writing? They liked it? MR. HOUGHTELING. Yes, I was talking to Van Vaerenewyck in Boston today. He said he had a lot of favorable reports on it. Regraded Unclassified 325 - 17 - H.M.JR: It has never been done before, has it? MR. HOUGHTELING: No. H.M.JR: I don't know whether Ted Gamble has an ace or joker in his hand. Now, come clean, what is it? MR. GAMBLE: Eighty-two million, Mr. Secretary. (Laughter) Two million to spare. H.M.JR: It is all right. He says he wants a hundred million. MR. GAMBLE: He will get a lot of hundred million dollars. H.M.JR: That is a red ace, the ace of hearts. MR. GAMBLE: I thought Tom Lane of Advertising might tell you briefly how we are scheduling our advertising this time so you will know what is coming in the remaining couple of weeks on advertising. MR. LANE: More than ever before, Mr. Secretary, a larger proportion of our promotion is breaking the latter part of the drive than was true in September or previous war loans. For example, during previous drives the news- papers would be full of ads the first few days, and in many cases they would have little or nothing throughout the rest of the campaign. We deliberately did a lot of things so we would have a more sustained schedule. For example, we scheduled peak advertising days that were sent out to all the retailers and newspaper ad managers, Marine Day, Schools at War--and Treasury Hunt Day is a week from Thursday. That will spread out the advertising. The Bataan business has given us a lift of advertising that is still breaking. We wired out an ad, you know. I just talked with the checking bureau this morning, and they said that that ad is starting to come in in consider- able numbers. As far as our radio picture goes, here are some of the things that are yet to come up: The Kate Smith Regraded Unclassified 326 - 18 - Columbia broadcast was just yesterday, so, of course, you don't have any effect on actual sales yet from that. The NBC all-day bond sale will not be until February 8. In addition, NBC has just set up a half-hour program that will be broadcast every night from February 1 through February 8. Here are some of the special talks that are still to come up: On February 3 Lieutenant General Vandergrift over CBS; on February 4, Mrs. Morgenthau on CBS; on February 5, Mr. Bell and the Boy Scouts on NBC; on February 5, also, Joseph Clark Grew on the Blue Network; on February 9, Mrs. Roosevelt on CBS; on February 14, Irving Johnson over the Mutual Broadcasting System. Also, on the allocation program, many of the best shows, top ranking shows of the air--they are giving us 8 complete program--are still to come in the next two weeks. Here are just some of the programs: Frank Morgan, Fanny Brice, Jack Benny, the Quiz Kids, the Hour of Charm, Cavalcade of America. H.M.JR: O.K. All right. You still haven't had General Marshall. MR. GAMBLE: We had General Marshall, yes, sir. We had an excellent statement from him day before yester- day. MR. LANE: Mr. Secretary, again this time we deliberately withheld some of our material. We withheld some of it that just went out the end of last week and the first part of this week to give it a lift--another clip sheet, a special feature page, and several of our mat releases. The only think I can add, Mr. Secretary, is that this time we are getting a true response from national advertisers who are preparing and placing their own copy. Most of that material, because of closing dates, and so forth, will appear still to hit in the next couple of weeks. Regraded Unclassified 327 - 19 - MR. GAMBLE: Bob Coyne. MR. COYNE: I have only one or two items, Ted. The State of Delaware is very interested in the E bond picture, because all of the E bonds--at least fifty percent--that are sold in that State move through one bank. The first ten days of this drive versus the first ten days of the September drive showed a fifty percent increase in favor of the January war drive, fifty in amounts, two hundred and ninety-one thousand against two hundred and twenty-thousand, and what is more important, thirty-three hundred pieces against twenty-three hundred pieces. Now, that is a sample of fifty percent of the E bonds that moved out during that period, based on our previous experience. In California, which I was interested in because it was one of our worst areas last time, they seemed to think they are eight percent better off today than they were in the comperable day during the last drive. The figures have been showing up much slower there, and they haven't shown the surge that Sid is so eagerly waiting for. But the Federal Reserve Bank indicated out there that they expected that surge today and that our day-by-day sales have been about fifty percent better in January as against September, without any surge having shown up. H.M.JR: How much better do they have to be for the country to make three billion dollars? MR. COYNE: About one-fifth. MR. LINDOW: It is really not that high, Mr. Secretary, because you have more days this time. You have two full months, whereas last time we had a lot shorter time, about six weeks. In the first seventeen days of this month as against the first eight days in September, we took in about two hundred eighty million dollars more in E bonds. So we have that much gain just on the extra time before the drive formally opened. Regraded nclassified 328 - 20 - Now, there will be a little extra gain at the end, because the accounting period is longer. MR. LEE: Supplementing tomorrow's account of publicity, all of the newsreel issues for the rest of the campaign are committed to cover the war bond situation. H.M.JR: Is Coyne through? MR. COYNE: I have just one observation to make on Federal Reserve Bank reporting. If you will look at this chart, the St. Paul Bank--the four States surrounding it--they all report to St. Paul. Iowa, Nebraska, and Idaho are not making 8 good showing, and yet, they will turn in a good quota. It appears to be quite obvious that the difference in reporting practice in those States account for the difference in performance there. H.M.JR: I have two suggestions to make that aren't going to make or break the thing. One is for the motion picture industry. I used it Sunday night. That is in regard to Lidice, Kharkov, this and that. It isn't just the Japanese. I wonder if the motion picture people would have time to throw together an atrocity film of the various atrocities which have existed and get it out. There is this film the Russians have just brought over from Ukraine, taking various cuts out of various things. You remember--I got it from "Remember the Maine." If you remember Pearl Harbor, remember this Russian thing. It isn't just the Japanese thing, because of the letdown. Do you see what I mean? MR. LEE: Yes, sir. I will examine the possibilities of doing it quickly enough to be of use to us within an hour after I get back. H.M.JR: Throwing the thing together, going back to the old slogan, "Remember the Maine." MR. GAMBLE: Like your annual roundup, Paul? MR. LEE: Yes. It would be a question of whipping the distribution problem quick enough to do us some good. Regraded Unclassified 329 - 21 - H.M.JR: Fred is working on one for me to do on the air, but I don't know when I'll be able to do it. Do you get the idea? There is no use unless it could come in quick enough. MR. LEE: Yes, sir. That would have to be almost necessarily applied to the newsreel setup, because it is the only way the distribution thing could be fast enough. H.M.JR: Do you like the idea? MR. LEE: Yes, sir. I see nothing wrong with it. H.M.JR: Oh, better than that, "There is nothing wrong with it." MR. LEE: Excuse me, sir. H.M.JR: That is all right. MR. LEE: I was examining from a technical stand- point. H.M.JR: Another idea which I gave to Smith--and I don't know where it is--I very, very much would like to have, if they would do it, soldiers on leave from the front to put on a show on the air for us from overseas at one of these rest camps. Did you have any luck, Fred? MR. SMITH: Well, I talked it over with General Byron up there. It will either be tomorrow or the following day. H.M.JR: Have you sold it to these people? MR. SMITH: No, I haven't mentioned it to these people. H.M.JR: I mean, do you have any enthusiasm here? MR. SMITH: It hasn't gone beyond Dudley and Charley yet. Regraded Unclassified 330 - 22 - H.M.JR: Oh, I was thinking of this room here. The point is, could you get these boys who have been at the front--you can't get them from the Pacific--who are in the rest camps, plus trained nurses who have been there, to talk about some of their experiences, and then incidental- ly say how many bonds they are buying and shame these people at home, without doing it too obviously? MR. GAMBLE: Could you get Kirby to do it on the Army Hour Sunday? MR. SMITH: He will probably make a whole broadcast, that is all. H.M.JR: These people who have been up there and have seen the thing, saw people die all around them-- they are buying the bonds; most likely eighty or ninety percent of their pay, whatever it is, is going into bonds. If we can do it, I think it would be awfully good. And it is novel. I think they would enjoy it. I mean, it would be kind of fun for them. MR. LEE: On bond tours, the reception they have gotten is tremendous. H.M.JR: But supposing you got the fellows from a rest camp in Italy who have been up around Cassino, Hill 660, or whatever the numbers are, I mean, like this young lieutenant who personally took two tanks and got the Congressional Medal. I mean, we could have that fellow talk to these people. MR. GAMBLE: Or this boy who shot down six planes in fifteen minutes yesterday. MR. LEE: That has tremendous influence. I see nothing wrong with it! (Laughter) H.M.JR: I have one other very little thing. I think the country is now ready also for Noel Coward's "Don't Let's Be Nice to the Germans." Regraded Unclassified 331 - 23 - MR. GAMBLE: Do you know it has been released? They are criticized for it, but it has been released. H.M.JR: That is all right; don't let's be nice to the Germans. Have we been criticized? MR. GAMBLE: A fellow by the name of Gilbert Seldes. H.M.JR: Who is he? MR. GAMBLE: A producer in New York who sent you a telegram criticizing us for it. H.M.JR: Well, put it in the papers. Wait a minute. Gilbert Seldes gets out a weekly paper. MR. SMITH: I think that is his brother- the "In Fact." H.M.JR: Well, that is all right. A lot of people aren't ready yet. They still want to be nice to the Germans and the Japs. MR. GAMBLE: In fairness to him, he thought they did the opposite. H.M.JR: Let's have a little excitement about it. MR. GAMBLE: We did & swell job on the transcription. H.M.JR: Can I ever hear it? MR. GAMBLE: Yes, sir. I am sure there is one here for you. H.M.JR: I would love to hear it. MR. COYNE: On the Treasury Star Parade. MR. GAMBLE: Will you see, Tom, and if there isn't one here in the studio, send one over right away. We have five of our trailers which we are going down to look at if anyone would like to join us. Regraded Unclassified 332 - 24 - H.M.JR: May I say this in conclusion? It sounds all right, but the old man still hasn't the feeling in his elbow that it is in the bank. You (Gamble) know me; and until I get that feeling-- MR. GAMBLE: We are all going to be uncomfortable. I know. (Laughter) H.M.JR: Nobody here said anything that makes me convinced that the three billion dollars is in the bag. MR. GAMBLE: I appreciate that, and it is very difficult. H.M.JR: I will keep you people on the anxious seat until I feel that way, but I still don't feel it is in the bank. MR. GAMBLE: I don't think, Mr. Secretary, with an operation that represents the maximum, as I think this does in physical ability, to do this job, we can get off the hot seat until we get closer to the end of the drive. H.M.JR: You better make sure about the Ford Company who bought twenty-five million dollars on block and doesn't turn it in, and all the rest of those things. These manufacturers had better make sure they are going to get their things in, in time. As I say, these are encouraging, but they are not, I am sorry to say, convincing. MR. GAMBLE: They are not cash register sales. H.M.JR: I am not questioning anybody's sincerity. I am still from Missouri, and I am going to keep being that way-- MR. GAMBLE: ...until you are in better shape. I appreciate that. Regraded Unclassified 333 - 25 - H.M.JR: And I wish you would get the word out. MR. GAMBLE: We will tonight, Mr. Secretary. We will caution everyone again tonight. H.M.JR: I am not worried a bout the fourteen billion; but I am worried about the three. Mr. Bell, do you want to say a word? MR. BELL: I don't think SO. I haven't been so worried about the three billion. At least, I haven't had any reason to worry about it. It seems to me we have a better organization. We have a longer time; we have the benefit of the repeat orders coming in; we have only five hundred million dollars more to make than we had in September with all of the advantages that go with a better organization, a longer period, and people buying their limit in the month of January. I don t see why we can't make it. H.M.JR: I don't, either, but it is still to be made. MR. GAMELE: Well, it is a big job, that extra five hundred million. H.M.JR: I am delighted with the enthusiasm and the kind of a sales organization you have. On the other hand, it is my job to make sure-- MR. GAMBLE: that we aren't letting down anywhere. MR. LEE: You just don't blindly trust my judgment. H.M.JR: No, sir. And being Secretary of the Treasury isn't a job you can relax in. I have said consistently, and people have criticized me for it, that it is like an airplane engine that goes at full speed. Once it stops you collapse. I can only fail once, and I am not going to fail. In this business you can only have one flop and you are off. I don't know how many chances you have in your industry, but I only give myself one. Regraded Unclassified 334 - 26 - But keep it up, and I will be watching you. MR. GAMBLE: Fine. H.M.JR: That is all. : Regraded Unclassified 335 February 2, 1944 4:25 p.m. HMJr: Hello. Hello. A. Willis Robertson: Yes, Mr. Secretary. HMJr: How are you? R: Fine, thank you, HMJr: I got a message you wanted to call me and talk to me. R: Yeah, about making Series E, F and G acceptable for taxes after the war. HMJr: Well, I -- they are now -- the law 1s so written that we can accept them any time for taxes. R: No, I think there is some question about that. They can be cashed in -- E Bonds can be cashed. HMJr: Well R: But there is another series that are acceptable for taxes but that's all. These three are not acceptable for taxes. HMJr: Well, I consulted Mr. Bell before calling you R: Yeah. HMJr: And he said, "E, F and G R: That's right. HMJr: " could be used for taxes," but if you have some doubt I'll check it again. R: No, not if you are satisfied. I just -- a man that is supposed to be well posted in such matters and made some study of it and he gave me the list of those that could, and said that he wanted to write an editorial advocating a change in law HMJr: No. R: to make those acceptable for taxes. Regraded Unclassified 336 - 2 - HMJr: Well, I'll ask Mr. Bell to check it again to make 100% sure and if we're wrong we'll let you know. R: All right. All right. HMJr: But he R: Well, if it's already the law, we have no objection to it staying the law. HMJr: But if we're wrong in that, we'll get in touch with you. R: Thank you 80 much, sir. HMJr: Thank you. Regraded Unclassified the Secretary 337 2/2/44 FOURTH WAR LOAN Beginning January 18, 1944 (In millions of dollars) Cumulative : Through : Through : Thre gh : Through : Through : Through : : Jan. 28 : Jan. 29 : Jan. 31 : Feb. 1 : : : : : : : : : : : : : : Series E Bonds : 874 : 944 : 1,007 : 1,085 : : : : : : : : Series F Bonds : 53 : 60 : 66 : 75 : : : : : : : : : : Series G Bonds : 266 : 296 : 319 : 355 : : : : : : : : : : 2-1/2% Treasury Bonds : 250 : 312 : 400 : 584 : : : : : : : : : : 2-1/li% Treasury Bonds : 378 : 519 : 639 : 1,089 : : : : : : : : : : 7/8% Certificates : 790 : 968 : 1,230 : 1,763 : : : : : : : : : : Series C Notes : 644 : 834 : 967 : 1,209 : : : : : : : : : : : : : : : : : TOTAL : 3,255 : 3,933 : 4,628 : 6,160 : : : : : : : : : : : : : : : : : Regraded Unclassified 338 FEB 2 1944 Dear Eddie Cantor: I was delighted to receive your wire and to know that you continue to support our im- portant home front effort with all your time, talent end energy. I an sure you realize as we do that col- lateral benefits of such an activity as you engaged yourself in in San Francisco are many. Certainly you can be proud of your generous and patriotic efforts on behalf of our common cause. Sincerely, (Wigned) E. Morgenthou, Jr. Mr. Eddie Cantor, R. K. 0. Radio Pictures, Hollywood, California. TRG:DFT R Regraded Unclassified gausle 339 cramp comper or WU15 NL 544 JAN 31 MII 8 40 SANFRANCISCO CALIF JAN 30 1944 HENRY MORGANTHAU JR WASHDC HAPPY TO INFORM YOU SOLD THIRTY SEVEN MILLION SIX HUNDRED THIRTY THOUSAND SEVENTY FIVE DOLLARS WORTH OF BONDS FOURTH WAR LOAN RESULT OF TWENTY FOUR HOURS OF CONTINUOUS BROADCAST OVER STATION KPO IN SANFRANCISCO REGARDS EDDIE CANTOR. BM 74% 31 MY 8 838 AM JAN 31 1944. J&G Regraded Unclassified 340 February 2, 1944 Dear Kate Smith: I want you to know how much we at the Treasury appreciate your splendid performance yesterday on behalf of the Fourth War Loan Drive. The amount of money raised for the sale of War Bonds is but a part of the over-all attainment of such a demonstration of time, energy and talent. Collateral benefits are many. For one thing such an activity sids immeasurably in creating an aware- ness of the big task we are called upon to face in raising such large sums of money to finance the war. Your day yesterday was, as the one in the Third War Loan, an outstanding success from our point of view, and I think you should be very proud of this very tangible evidence of your wholesome and patri- otic desire to serve. Sincerely, (Signed) II. Morgenthau, Ji Miss Kate Smith, 0/0 Ted Collins, 1819 Broadway, New York, New York. TRG:dft Regraded Unclassified 341 FEB 2 1944 Dear Colonel Halseys Thank you for your note of January 31, with which you were good enough to send a copy of your memorandum to Hembers of the Senate and their staffs, and to officers and employees of the Senate regarding the Fourth War Loan Drive. As I have stated previously, I greatly appre- clate the special interest which you have taken in the sale of Var Bends at the Capitol. With my best wishes, I as Sincerely yours, (Higned) H. Morgenthau, 3, Secretary of the Treasury Golenel Edvin A. Halsey Secretary of the Senate Washington, D. c. 2 EFBartelt:hbw 2/1/44 Regraded Unclassified 342 FEB 2 1944 Dear Mr. Doxey Colonel Halsey has sent to no a copy of your joint memorandum to Members of the Senate and their staffs, Officers of the Senate and employees, dated January 29, 1944, urging them to buy War Bonds during the Fourth Var Loan Drive. I appreciate very such your interest and help in the sale of War Bends at the Capitol. Sincerely yours, (Signed) H. Morgenthau, Jr. Secretary of the Treasury Nonorable Wall Doxey Sergeant at Arms of the Senate Vashington, D. 0. 2/1/44 Regraded Unclassified EDWIN A. HALSEY SECRETARY United States Senate Dear Mr. Secretary: You see we are still trying to keep things moving at the Capitol. E. n. H. you++. Regraded Unclassified the the So January 29, 1944 OF THE SELATE AND THEIR STAFFS, TICERS OF THE SENATE AND EMPLOYEES: On January 31 there will be stationed in the Office of the Financial of the Senate, representatives of the Treasury Department from whom Sonds may be purchased. This is done upon the request of the Secre- of the Treasury who, in a letter to the Sedretery of the Senate, re- us of the War Loan Drive. The letter from the Secretary of the Treas- for your information, is quoted in full: --- January 8, 1944 Colonel Edwin A. Halsey Secretary of the Senate Washington, D. C. Dear Colonel Halsey: In the Fourth Yor Loan Drive, commencing January 18, the Treasury will undertake to raise $14 billions for con- tinued prosecution of the war. of this amount we hope to get about 35% billions from individuals, which is $500 mil- llons more than the goal set for individuals in the Third Wer Loan Drive. on December 7, 1941, a date which will live in infamy, as the President has said, this country was mavagoly attacked by the Japanese at Pearl Harhor. in ell knew that the war was not of our making. We are determined to fight this wor to a finish -- unconditional surrender. And it must be paid for. My purpose in writing you now 1a to enlist your aid dur- ing the Fourth Var Loan, with the end in view that appropriate facilities may be rovided for the sele of war bonds to the Members of the Senate, its officers and employees. This Department will be glad to assist in any way it can to make these bonds conveniently available to the Henbers of the Senate end their employees. Sincerely yours, (Signed) Henry Morgenthau, Jr. Secretary of the Treasury The Fourth nationwide War Bond Drive was inaugurated on January 18th, end will continue through Fabruary. You are respectfully urged to buy your bonds now so that the Senote may make e showing in the sale of bonds dom- mensurate with its staff, LET US ALL no OUR SHARE! Edwin A. Halsey Secretary, U, S. Senate Well Doxey Sergeant at Arms of the Senate Regraded Unclassified 345 February 2, 1944 Dear Mr. Johnson: Thank you for sending me Harris's story about the sale of Bonds to sailors. The record that both the soldiers and sailors have made is striking. At one time, I wanted to release to various localities the names of local soldiers who were both buying Bonds and facing enemy fire; but it turned out that this was an impractical idea from the standpoint of getting the names from the War Department. I still believe, however, we ought to find some way of letting the people back here know how well their soldiers are doing. If we could find some way to use soldiers participation in bond-buying as a yardstick for civilians participation, I think we would have a very effective device. Perhaps somebody in your shop could think up a way to do it. Sincerely, (Signed) H. Morgenthau, 44 Mr. Earl J. Johnson General News Manager United Press Association New York, New York FS:mlf Regraded Unclassified TOR'S NOTE: Vica ED PRESS WAR CORRESPONDENT RICHARD C. HARRIS SPENT WEEKS WITH DENED SAILORS WHOSE CONTRIBUTION TO THE WAR EFFORT IS TO ENDURE DSHIPS AND DANGERS OF THE NORTH ATLANTIC IN SEARCH OF NAZI INES. IN THE FOLLOWING DISPATCH, HE SETS FORTH A LITTLE KNOWN OF THEIR FIGHT FOR VICTORY WHICH IS OF PARTICULAR INTEREST TO INS DURING THE FOURTH WAR LOAN DRIVE. -0- BY RICHARD C. HARRIS UNITED PRESS MAR CORRESPONDENT OARD A U.S. ESCORT AIRCRAFT CARRIER, NORTH ATLANTIC- (UP) HI NG SUBMARINES IS TURB LENT, WINTRY SE^S IS NOT ENOUGH FOR THE F ING ME: 0: THIS CVE "BASY FLAT-TOP," -- 90 PER CENT ARE BUYING WAR R TO THE HILT. E MEN MICO RISK THEIR LIVES DAILY AND ENSURE EVERY CONCEIVABLE D OMFORT TO WIX THE BATTLE OF THE ATLANTIC LOOK U.ON BOND PURCHASES NO AS AN ACT OF PATRIOTISM BUT AS A GOOD INVESTMENT -- NOTHING YORE. LIEUT. L. S. POER, GUNNERY OFFICER, ATLANTA, CA., ORGANIZED A BON'. SELLING CAMPAIGN A 'ONG THE SHIP'S 16 DIVISIONS, TELLING HIS SALESMEN AT THE OUTSET: PATRIOTISM IS NOT A SELLINC POINT TO A MAS MMO HAS OFFERED HIS LIFE TO HIS COUNTRY. SOUND INVESTMENT, GOOD INTEREST AND FUTURE SECURITY ARE THE BEST SALES ARGUMENTS. MORERS418A UP25 ADD BONDS ABOARD CARRIER (HARRIS) XXX ARGUMENTS." IEUT. POER HAD A SALESTAN FOR APPROXIMATELY EVERY 25 MEN IN THE 16 DIVISIONS WHICH COMPRISE THE SHIP'S EIGHT DEPARTMENTS: AIR, GUNNERY, INEERING, MEDICAL, CONSTRUCTION AND REPAIR, COMMUNICATIONS, NA ICATION, AND SUPPLY. ME OFFERED CARTONS OF CIGARETS AS PRIZES. SOME OFFICERS MADE ALLOTMENTS TO PURCHASE AS MUCH AS $150 WORTH OF BO S A MONTH, BUT SOME OF THE YOUNG APPRENTICE SEAMER, SEAMEN 2ND CL $ AND SEAMEN 1ST CLASS, EARNING, $50, $54 AND $66 PER MONTH, RE ECTIVELY, AND PAYING AN AVERAGE OF $6 PER MONTH FOR INSURANCE, KA to SKIMP TO BUY TWEIRS. ALONGSIDE THE NAMES OF SOME PROSPECTS, SA SMEN RECORD, "CAN'T AFFORD IT; WIFE AND BABY.' ONE INDIVIDUALIST TO A SALESMAN HE WAS "SATISFIED TO LET HIS CIVILIAN BACKERS BUY. HE S THE ONLY ONE TO USE HIS SERVICE AS AN EXCUSE FOR NOT BUYING. IUR SALESHEN TIED FOR FIRST PLACE, EACH SELLING HIS DIVISION 100 PI ENT. THEY WERE CUNNERS "ATE 1ST CL. NELS V. JOHNSON, OF ST BURG, COL.; PHARMACISTS MATE 1ST CL. VIRGIL D. PARSLEY, OF B) DNT, TEX.; YEOWAN 2ND CL. WALTER SCOTT COFFMAN, OF COLUMBUS, O., At LECTRICIANS MATE 2ND CL. RADFORD J. NORVELL, OF ST. LOUIS, MO. COND PLACE WAS TAKEN BY YEOMAN 3RD CL. RICHARD E. DEBARGE, OF SI FIELD, MASS., AND WATERTENDER 2ND CL. EDWARD L. NAGLE, OF J SHORE, PA. TOTAL VALUE OF THE ALLOTMENTS PER MONTH WAS $4, 777.75. LIEUT. OPES TO MAKE IT 1 O PER CENT VITH ANOTHER CAMPAIGN IN RING. RS421A Regraded Unclassified 347 Mr. Pehle asks for a 60-day deferment for Rodney Ward Stewart, one of his assistants. Stewart has just completed a six months' defer- ment and a renewal was not requested inasmuch as he expects to receive a commission in the Navy. However, Pehle has him temporarily working on the War Refugee Relief work and it is because of that that he desires to keep him for the next two months. Tim Regraded Unclassified 348 February 2, 1944 The Committee on Deferments gives approval to the attached request for the deferment of Mr. Rodney Ward Stewart, Assistant Director, Foreign Funds Control. Mr. Stewart's position is on the key list approved by the Mar Manpower Commission. He has been under deferment since July 7. 1943. He is 31 years of age, is married and has 1 child 1 year and 3 months of age. Mr. Stewart is in charge of the Administrative Services Division and the Statistics and Reporting Division and is responsible for all matters relative to the administrative management and statistical and reporting work of Foreign Funds Control. This includes all phases of personnel management including the training of replacements for - ployees called to military service; all budgetary and fiscal administra- tion; all administrative planning and procedural work; the maintenance of all administrative and property accounts; the provision of machine tabulation and statistical services; and the supervisionbof all other office management services. Mr. Stewart directs and coordinates the work of more than 400 employees. It is practically impossible at this time to secure a replacement for Mr. Stewart and if someone were found approximately a year's intensive training would be necessary. (SGD) Herbert Chairman E. Gaston (Sgd) W. N. Thompson Approved: (For 60-day deferment) (Sgd) T.F. Wilson (Sgd) H. MORGENTHAU JR Secretary of the Treasury LB Regraded Unclassified 349 2/2/44 My dear Mr. President: Permate to the provisions of the let approved March s, 1938, as amended (15 U. B. C. 713a-1), an Ast to mintain unimpaired the capi- tal of the Commodity Credit Corporation at $100,000,000, and for other purposes, - appraisal has been mão of all assets and liabilities of the said Corporation as of March 31, 1943. As 8 result of such appeais- al and on the basis of the cost, including not more then one year of earrying charges, of such assets to the Corporation, or the average mr- ket prices of such assets for the traive menths period ended March 31, 1943. whichever was less, it has been determined that the liabilities of the Corporation, including capital stock of $100,000,000, assed the assets by an amount of $39,436,004.93. A report of the Committee 4 pointed by - to appraise, - 4 behalf, the assets and liabilities of the Corporation is attached for your information. The Ast sited above provides that in the event the not worth of the Corporation, as shown by the appraisal by the Secretary of the Treasury, is less than $100,000,000, the Secretary of the Treasury, on behalf of the United States, shall restore the amount of rush impair- ment by a contribution to the Corporation in the amount of such impair- next. to smble the Secretary to make each payment there is authorised to be appropriated annually, commensing with the fissal year 1938, an amount equal to any capital impairment found to exist by virtus of my appraical. 2a view of the foregoing, as appropriation of $39,436,804.93 is assessary to restore the capital impairment of the Commodity Credit Corporation as of March 51, 1943. It is recommended that - estimate for a deficiency appropriation in that asset and in the following form be requested from the Congress no enable the Secretary of the Treasury, on behalf of the United states, to restore the anount of the capital inpoiment of the Commodity Credit Corporation as of March 31, 1943. by a contribution to the Corporation as provided by the Ast approved March s, 439,436,884,93." 1938, us amended (15 1. s. Co 7230-1) Faithfully years, (Signed) III Morganthon, Jr. Secretary of the freesury. The President, The White - February 18 1944 Regraded Unclassified 350 25 Fabruary 1,1944. The Nonorable The Secretary of the Treasury Washington 25, D. C. Sir: In compliance with instructions in your letter of April 12, 1943, the undersigned committee on your behalf has unde an appraisal of the assets and liabilities of the Commodity Credit Corporation for the purpose of determining its net worth as of March 31, 1943, as 16" quired by the Act approved March 8, 1938 (52 Stat. 107), as amended. The Ast approved March 8, 1938, provided that the value of the assets of the Corporation shall, insefar as possible, be deter- mined on the basis of market prises at the time of appraisal. These provisions of appraisal were emended by Public Law No. 147, 77th Con- gress, approved July 1, 1941, whereby such assets were to be valued on the basis of cost, including not more than one year of earrying charges, or the sverage market prices of such assets for a period of twelve months ending March 31 of each year, whichever is less. There is attached herete as Exhibit 4, a balance sheet of the Commodity Credit Corporation as of March 31, 1943, showing its assets and liabilities on the basis of its book values, together with adjustments to reflect the appraised value of assets, insofar as pos- sible, in accordance with the provisions of the Act of March 8, 1938, as amended. There is also attached an operating statement, Exhibit 3, covering the period from October 17, 1933 through March 31, 1943, showing & detailed cusulative deficit of $183,387,408.53, as a result of this approisal. this cumulative deficit, as distributed over the various commedity programs of the Corporation is shown in the attached Exhibit 0+ Regraded Unclassified 351 - 2 - Accounting Verification At the request of the Department, arrangements were made with the Reconstruction Finance Corporation to assign its auditors to make a special emamination of the books and related records of the Commodity Credit Corporation as of March 51, 1945. the conditto has had the benefit of this emamination is making this appraisal. Classification of Commodities For the purpose of this appraisal the various commodity programs of the Corporation have been elassified, as follows: Commodity leans Exhibit D Representing direct loans made by the Corporation, or loans purchased by the Corporation from the various lending agencies cooperating in the lending programs. Commodity pools and purchases* Exhibit I Pooled commodities represent commodities delivered to the Corporation by producers in payments of their loans. These commodities are classified as (1) "Pool-Owned" covering commodities the title to which has been aequired by the Corporation, or (2) "Produsers-Pool" covering commodities which are to be marketed w the Corporation and upon final liquidation any returns over the Corporation's investment in the eammodity to be distributed to the participating producers. Purchased commodities represent outright pur- chases by the Corporation, as authorised by the President. of the United States, for the purpose of acquiring stra- togic commedities essential to the war effort and for other purposes. Commodity leans (agresents to purchase) Rehibit F Representing leans to preducers by eligible lending agencies vader agreements through which the Corporation is committed to purchase the loans from the lending agencies under certain specified conditions. Valuation of Commodities is indisgted in the atteshed Exhibite D, B and 7, the above classified commedities, by crop years or programs, have tem appraised, where possible, en the basic of oest (including not more than one year Regraded Unclassified 352 - 3 - of carrying charges) or average market value for the year ended March 31, 1943. whichever is lower, in accordance with the provisions of the lot of March s, 1938, as enended. the adjusted book balances, the appraised value of the commodity and the appraisel less as of March 31, 1943, by crop years, are shows in eash of the above exhibits. An independent verification of all average market prices was made by representatives of the Treasury and the date in the attached statements were checked to the beeks and records of the Corporation. In some instruces market quotations were net available for the particular commodities hold by the Corporation. In these cases, certifications of prices applicable to such commodities were obtained from specialists of the Corporation who are familiar with the marketing of these commedities. Cotten: The average market value of cotten was determined on the basis average grade of 15/16 inch middling cotten en the team (10) designated spot markets as published in the efficial quotation schedules issued by the Agricultural Marketing Service of the Department of Agriculture. Grains: The average market value of all grains was determined on the basis or the weighted average local market prices, according to location, as appearing in the Mid-Month Local Market Price Reports pub- lished by the Department of Agriculture, giving effect, where required, to price differentials on the basis of grains stored in steel bins, country elevators, sub-terminals and terminals. Naval stores: the sverage market value of turpentine and rosin was the basis of prices quoted in the Savennah Naval Stores Review, Savanah, Georgia. Tobacco: There are no public markets or published prices for prised WHOLE. Consequently, the average market value in relation to "Cost, including not more than one year of earrying charges" could be developed only on the basis of its prespective sales values. As in former years' appraisals, this information was furnished by the Director of the General Crops Division of the Commodity Credit Corporation, and who arrived at after giving eareful consideration to the inventories, age, and proppective market trends. Purchase programs: the Corporation has in operation, by authority or 180 of the United states, three major purchasing programs, Agricultural Supplies Purchase Program, Foreign Purchase Program at General Commedities Purchase Program. Regraded Unclassified 353 Agricultural Supplies Purchase Program This program was instituted for the purpose of facilitating the domestic production of strategic commodities formerly imported or the production of substitute commodities. The Corporation 1s authorised to purchase such supplies and FEW materials and to whilise the services of the Agricultural M- justment Agency and other agencies of the Department of Agriculture in earrying out the program. Same lesses are being insurred in the opera- tion of certain vegetable oil projects under this program, principally the Cettem seed, Peanut, Seybem and Linesed Oils. These lesses involve the purchase of these vegetable oils for sale to producers and processors at commodities. a lower price in order to stimulate production of these strategic Foreign Purchase Programs This program was instituted primarily for the purpose of (1) sequiring strategic commodities essential for the production of my materials, (2) supplying civilian and military demands for food, and (3) supporting the economics of neighboring comtries whose export outlets ware jespardiged as a consequance of the Mar. Purchases were made with the approval of the Board of Reonomic Warfare. Through March 31, 1943, this program would have operated at a small profit except for net losses from uninsured war-risk sinkings and excessive costs of marine and war-risk insurance and transportation costs which were absorbed by the Corporation on certain commodities. General Commodities Purchase Program This program was insti- tuted with the view of ***rdinating In one agency familiar with domestic agricultural production and marketing conditions, the large scale pur- chases heretofore made by the Red Cross and foreign buying agencies for shipment overseas. purchases by such agencies were made on an energency basis for immediate shipment and were nesessarily determined by immediate needs, shipping facilities, and funds available at the time of purchase. The offect on the domestic agricultural economy of such periodis buying was to create local and temperary conveities end flustu- ating prices, without afferding say approciable benefit to American farmers. Purchases under the program are now made with regard to seasonal peaks of production, marketing and processing and serve to support prices to farmers at proviously guaranteed levels. The program is handled through the Ped- oral Surplus Commedities Corporation, as agent for the Commodity Credit Corporation, and the commedities are stored in the form and at losations most satisfactory for meeting energency needs. The purchased commodities are released to strategic way enterprises, principally for shipment abroad, and mestly in collaboration with the Board of Beenewis Warfare (now the Foreign Recomic Administration), Mar Production Board, and the Department of state. lbst of the commedities are disposed of through the Lend*Lease Administration (now the Foreign Administration), or other Government agencies at cost to the Corporation plus a mark-up of 2% through April 30, 1942, and 15 thereafter. Regraded Unclassified - 5 . 354 Principle of Appraisal: The appraisal principle of "Cost, including not more than one year of carrying charges" or the "Average market value", whichever is Lewer, cannot readily be applied to these programs in the same namer as the regular commodity leans of the Corporation. The innumerable classes and grades comprising the general groups of commodities contained in the programs, the varied prices according to lecations, and the look of published prices on many items, make it impructical at this time to unke 60 independent appraisal of the average market value of the commodities in the record inventories. For this reason, the committee doema it advisable that these progrems be appraised at the values shown on the books and records of the Commodity Credit Corporation, and in the case of the General Commodities Purchase Program those of its agent the Federal Surplus Commodities Corporation, at March 31, 1943. and that the lesses on the programs be allowed as and when such lesses are determined and become of record in the ascounts of the Corporations. All known losses through March 31, 2943. have been given effect in this appraisal with respect to the Agricultural Supplies Purchase Program and the Fereign Purchase Program, Due to deterioration and other causes same losses my be - tained on the General Commodities Purchase Programs The committee has therefore deemed it appropriate that the sales mark-up on this program, including certain applied interest income, be established as & reserve to cover such losses, including interest and administrative expenses applicable to the program. Valuation of Assued daterest Reseivable In determining the value of assets on the basis of "Cost, including not more than one year of earrying charges". accrued interest due the Commodity Credit Corporation on commodity leans has net been treated as a factor of cost OF carrying charges. Novever, sush ascrued interest receivable has been valued in connection with the related commedity to the extent, if say, but not to exceed the spread existing between the "Cost, including not more than one year of earrying charges" and the "Average market value". Current Year Progress (2948-43) the provisions of Public LAW 247. 77th Congress, approved July 1, 1941, regarding "Comb, including not more than one year of carrying charges" 10 not applicable with respect to ourrent year pro- gras, due to the fact that such programs through March 31, 1943, have net been in operation for & complete year and "see year of earrying charges" have therefore not secrued en the program at the date of this appraisal. For this reason, the premise was established whereby each current year program (1948-43) would be valued at cost as reflected on the books as of March n, 1943, or at average market value for the year ended March 31, 1943, whichever 10 the lowere Regraded Unclassified -6- 355 Basis of Appraisal The Cerporation's assets, secured by the various commodities, were appraised in compliance with the provisions of the law, giving recognition, insefer as possible, to "Cost, including not more than one year of carrying charges" or "Average market value for the twelve months ended March 31, 1943", whishever is less. The Corporation's liabilities were adjusted, where necessary, to reflect it's - liability for the purpose of appraisal. No physical inventories were taken as at March 31, 1943, whereby to determine the ascuracy of the quantities of collateral and inventories reflected in the attached exhibits. The quantities of commodities are reflected in accordance with the reports rendered by the sustodian Federal Reserve Banks, certain regional offices of the Corporation and sundry other agencies. Conserning these quantities the Mag Food Administrator was requested to furnish information as to their physical existence the cor- rectness of the unit and total costs, and their saleable condition at net less than unit costs. the Treasury's letter requesting such information and the Administrator's reply thereto are made & part of this report under Exhibit I. Restoration of Capital Impairment Section 1 of the Ast approved March 8, 1938, as amended, pro- vides "In the event that any such appraisal shall establish that the net worth of the Commodity Credit Corporation is less that $100,000,000. the Secretary of the Treasury, on behalf of the United States, shall restore the amount of such capital impairment by a contribution to the Commodity Credit Corporation in the amount of such impairment". On the basis of this appraisal and in accordance with the above provisions of law, the contribution due from the Secretary of the Treasury to the Commodity Credit Corporation to restore the impairment of its capital as of March 31, 1943, amounts to $39,436,884.93 as follows: Not Worth Capital Stock $100,000,000.00 Adds Paid-in-surplue Contributions by the Secretary of the Treasury to restore capital tapeir- ment as of appraisals of - March n, 1938 $94,885,404.73 March 31, 1939 119,999,918.05 March 51, 1941 1,637,445.51 Regraded Unclassified - 7 . 356 Less: Surplus payments by the Corporation to the Secretary of the Treasury for exeess contributions as a result of appraisale of - March 31, 1940 $43,756,731.01 March n, 1942 27,815,513.60 $72,572,244.69 $143,950,523.60 Total Capital Stock and Paid-in Surplus 243,950,525.60 Deducts Cumulative deficit as a result of appraisal March 31, 1943 183,387,408.53 $60,563,115.07 Adds Contribution due from the Secretary of the Treasury to restors impairment of capital as of March 31, 1943. 39,436,884.93 Total Net North $100,000,000.00 Respectfully submitted, Howard F. Barbolt Treasury Department Reale Mathaniel Royall Reconstruction Finance Corporation CanesonSferman Comerom G. GATHER Department of Agriculture GEJonesime 1-27-14 Regraded Unclassified COMMUNITY CHEDIT CORPORATION NAME - PRODUCT A 357 OF MARCH 1. 2563 less Book ASSETS Das 2 Approised his Partneted Less Values Approisal of America fork As or LIABILITIES Due To (Adjusted) Nom false às or America) March 31, 1943 31, 1943 (Adparted) of Listilities 4a or is or March 31, 1%) and n. 1947 - Cash is banks (foreign countries) $193,185.25 MIL SERVIFICATED. AND DATAILE- Cash - deposit with the Transport of the United Mates 309,357.85 Principal On looks of Bookkeeping and Marrasta, Treasury Department Accrued interest $1,83,282,00.19 138,857.47 6,256,678.37 as helts of Oder Maturalag afficer, Thereof Department 1,331,876.09 Total (Pare) Total 2,053,276.66 (Nos) 2,053,276.66 STATE - OTHER or DEPOSIT NIN na FINANCE CHARGES, Principal Do committy loans (contra) 38,726,049.96 3,512,380.63 Interest. On emmoditive - led or owned (contra). 58,826.95 13,162,987.60 On compdity loans - Arresmento to Total (None) perchase (entra). 16,584,421.05 COMMUNITY LOVE EXECUT - Total 71,260,292.28 [None] 33,260,202.28 Principal including charges paid 272,273,979.44 CHRISTS: Interest receivable. 4,710,646.64 Accrued and other charges (contra) Federal Crop Insurance Corporation 2,620,190.87 3,512,380.63 Lend-Lesse Administration 1,804,773.47 Total 280,497,006.71 5,685,662.90 74,01,30.00 Dosllocated nates. 253,088.00 Proceets of sales 1938-99 relains (contra), 229,566.88 PRODUCTY FOOLS AND 56,000.25 Principal including charges 1,693,613,104.32 Total Accrued a and other charges (contra) 4,994,890.93 (None) 13,162,987.60 Total 1,706,776,091.92 53,688,310.17 1,653,307,781.73 ACCOUNTS EXTAPLE- Purchases Under Deneral Connective COMMUNITY LOARD to PUBLIAIRE UNIT - Purchase Program 92,153,046.69 Principal (contes) 506,196,639.96 Other commetties minthased 26,803,620.27 Ancreased interest receivable (c/c/c) 3,903,546.89 Government of the United 2,491,547.26 Accired Interval receivable, backs (cont/dr) 3,643,623.09 Aprioditoral Algistems Agency 1,777,657.50 Address and other charges (contra) 16,584,924.05 Insurance presium payable 19,500.00 Total 530,528,734.79 55,920,924.50 473,607,810.20 Liquidation paline the producers cottem 1,155,758.32 "lorellaneous 60,278.00 LOANS una DAY COMMISSITIES) EXHLEST - Total 125,600,600.12 (None) 125,500,400.12 Principal instating charges paid 2,341,057.54 Accrued interest receivable. 14,180.12 to DATES APT LESUES Principal (sentire) $06,196,639.06 Total 3,355,237.66 (Now) 2,315,237.66 Accrued laterent - net purchased (ointra). 3,843,623.09 ACCOUNTS Total $10,040,263.05 (None) Federal Surplus Commity Corporations 510,040,203.24 Land-Lass sales, General Commetities INSURE no LOSS PROGRAM 8,904,267.67 (Nome) 8,904,267.67 Purchase Progres $79,951,802.79 Lend-Less asles, account of tobacco 12,732,600.39 Total Idebilities 3,528,337,470.42 (Nome) Section 32, Patie No. 120, 74th Congress, Surplus Diversion Program 832,201.99 93,516,807.17 CAPITAL 100,000,000.00 (Nome) 100,000,000.00 Agricultural Adjustment Agency $68,010.10 Federal Crop Insurance Corporation. 320,429.16 Total 94,705,348.45 (Nom) 94,705,246.45 Representing contributions by the Secretary of the Treasury coverting restoration of expital tepairment - of Accounted deficit CRASSE AND una ACCOUNTS RECEIVANCE Claims for sales Procesia 1938-39 Relator (contra) 229,546.88 March 31, 1930........... 94,285,404.73 Brown March A, 2943 Murch 1, 1939 119,999,918.03 included loar the Other Galas. 6,540,104.11 Other accounts receivable 6,110,162.47 Murch 31, 19d 1,637,445.51 in apprated of Tirtal (hone) 12,879,03.46 Less? Burgine payments nade to the Secretary of the Treasury for STATE ASD OTHER AUTHORI- excess contributions as of Less Ament of regital Steel grain storage Idra. $10,352,768.83 March n, 1960. $43,736,731.01 legalment restored by the Lesse learne for depreciation 3,359,391.03 6,993,197.80 March 31, 1942 27,815,511.60 73,572,246.00 Secretary of the Treasury Nooden 19,140,906.73 4,086.50 143,950,523.60 Birth 3, 19/2- Caster Iwan Total 26,138,193.03 (Now) 26,138,193.03 Less: bank deficit March 31, 190. 67,312,110.87 FLATURED AND Indance reserve. 76,636,022.73 Bort of 334,408.63 Ament - fre the Secretary Less: learn for depreciation 77,403.00 257,005.55 (Now) 257,005.55 of the Treasury to miss capital as of 11, 1%3 (200m) $116,074,897.66 Thist Liabilities, Capital and - Total Regraded Unclassified COMMODITY CREDIT CORPORATION EXHIBIT 3 358 OPERATING STATEMENT Statement of Income, Expense and Appraisal Losses from October 17, 1933 to March 31, 1943 (This statement covers Items listed in Exhibit o) INCOME EXPENSE Portion Credited Portirn Charged to Reserve for to Reserve for Interest Income: Gross Loss on the Net Cross Loss on the Net O.C.P. Program O.C.P. Program Interest on loans purchased $31,181,482.70 $31,381,482.70 Interest expense 864,631,551.65 $4,707,569.60 $39,943,982.05 Interest on loans not purchased 10,443,448.85 10,443,448.85 Administrative expense 24,904,783.56 2,847,731.43 22,057,052.13 Interest on loans to Secretary of Agriculture 21,696.81 82,407.58 19,289.23 Interest on funds held by Resonstruction Total expenses 69,556,335.21 7,555,301.03 62,001,034.18 Finance Corporation 2,387,055.26 220,356.59 2,166,698.67 Miscellaneous interest incose: 1938-39 Cotton 1,429.60 1,429.60 1935-36 Pooled cotton 12,691.92 12,691.92 1931-36 Tobacco 1,242.08 1,242.08 On wheat sold to Federal Surplus Commodities Corporation 8,957.32 8,957.32 44,258,004.54 222,764.17 44,035,240.37 Other Miscellaneous Income: Profit on sales of rubber 11,090,907.04 11,090,907.04 Sales mark-up on General Commodities Purchase Program 16,236,804.53 16,236,804.53 Sales mark-up on sales of tobacco 3,328,547.73 3,328,547.73 Sales mark-up on Agricultural Supplies Purchase Program 94,147.90 94,147.90 Miscellaneous Incose 1941-42 corn 171.03 171.03 Miscellaneous over payments by producers 481,261.06 481,261.06 Miscellaneous income, sales of loose cotton 176,355.40 176,355.40 31,408,194.69 16,236,804.53 15,171,390.16 Total Income 75,666,199.23 16,439,568.70 59,206,630.53 Net expenses (carried down) 2,794,403.65 62,001,034.18 62,001,034.18 Net expenses (brought down from above) 2,794,403.65 Actual losses from October 17, 1933 to March 31, 1943 64,518,107.22 67,312,510.87 Adds Potential losses based upon appraisal of March 11, 1943 116,074,897.66 Net losses $183,387,408.53 Regraded Unclassified 359 COMPORATE CREDIT - COUNT STATEMENT of MD. APPRAISAL X 17. 1911. = AND 9. 1963 Description Grant Total Cotton Corn Rest Rgo hrier Orda Saybene Plazared Tobacco Surgham Female Stope Better and Bosto ISSUEL Interest A Leans purchased $31,381,482.70 713,487,418.01 710,896,008.22 $2,455,399.35 $32,254.63 873,316.57 $005,29 12,183.00 12,715.20 Internit - loans not purchased 10,443,448.85 6,199,991.55 $2,111,318.66 $214,700.13 897,119.71 8776,093.40 1,928,598.23 4,132,192.35 22,410.01 73,647.66 161.71 24,639.18 19,116.10 - - Driver et an loans se Secretary 30,262.45 of Aprivalture 19,207.23 7,608.90 4,747.32 1,097.81 9,83 9,85 ,16 ,07 ,24 1,603.84 207.62 10.87 17.76 13.76 - Interest - fund with E.F.C. 2,166,698.67 1,443,623.55 265,375.91 206,969.64 675.81 00.14 1,83 1.83 20,18 121,076.70 interest income 39,970.23 3,281.27 3,764.00 1,030.45 20,143.19 1936-39 Cotton 1,429.60 1,429.50 - - - - - - - - - - * - - 1935-30 Posied oction 12,691.92 12,691.92 - - - . . - - - - - 1931-16 Tobacco 1,242.00 - F - - - - 1,242.00 - - - - . Thest sold to F.S.C.C. 5,957.32 - - 8,957.12 - F - - - - - - Total interest Income 64,035,240.37 19,112,563.53 13,094,809.72 6,807,816.67 35,450.30 147,354.22 1,273.49 26,826.52 21,651.80 873,359.00 2,151,576.31 217,992.27 191,833.21 98,164.90 796,236.11 our Income Profit an sales of rubber 11,090,907.04 - - - - + - - - - - - SAINA eark-up en tobacco sold 3,328,547.73 - - - . . - - - - - Sales wark-up en A.S.P. Progres - . - - - - - - - - . - 94,147.90 Salra earli-up on O.C.P. Program - a - - - - y - - 1 - - - giscellaneous incose 1941-42 som 171.03 171.03 - - - . - - . - - - - - Viscellaneous overpayments by proterers 481,261.06 239,637.79 25,732.75 17,826.22 (57.1) 08.14 3,22 107.11 34.10 36,701.93 358.14 - - - Proseed sales of lonse cotton 176,355.40 170,735.40 - - - - - - - - - - 1,22 107.51 34.10 3,367,249.56 357.14 - - Total miscellaneous Income 15,171,390.16 25,903.78 17,026.23 (57.53 41°.14 - - Total Income 59,206,630.53 19,528,756.72 19,120,713.50 6,025,642.00 11,907.89 147,972.16 1,276.71 16,936.03 71,696.20 4,240,60F.67 2,151,934.45 217,992.27 191,833.21 98,164.90 796,236.05 79,943,952.05 24,957,702.57 6,283,511.86 4,368,608.78 14,002.43 12,168.00 136.24 77.30 442.16 2,005,527.18 646,151.27 57,386.70 30,286.50 14,807.14 90,721.38 Interest expense 1,132,162.70 6,170.37 7,266.20 70.56 48,03 282.28 1,157,112.20 279,611.60 22,021.23 12,063.21 6,120.64 36,213.09 administrative expense 22,057,052.13 10,768,207.59 5,819,497.98 Total expense 62,001,034.18 35,721,990.16 12,101,111.84 7,470,861.46 22,172.80 19,435.00 214.70 125.15 724.44 3,248,679.38 425,764.87 79,407.93 42,349.71 20,927.78 124,935.57 +16,193,237.44 1,017,581.66 - 655,218.67 33,725.03 128,577.36 1,061.93 26,M08.68 21,161.76 901,069.20 1,226,171.50 130,584.36 149,483.50 77,237.12 671,301.29 Net Locase or express (+) - 2,794,403.65 # , . - - - - 7,019.92 - - 14,918,993.61 1 ASD: Limidation gatina 54,726,003.53 +3,992.99 . *111,336.06 -963,066.78 LESS: Liquidation losses , 119,444,142.75 +41,077,426.99 +49,033,722.01 25,622.80 +3,254,436.80 +4,154,305.08 - - Hel. liquidation losses - 64,518,107.22 54,918,995.61 -41,037,426.39 +3,992.99 . - *49,033,722.01 *25,682.00 7,039.40 +2,254,434.98 +4,154,305.08 # *111,336.96 *961,046.78 Net profit or loss (+) before appraisal of March 31, 1943 . 67,312,510.87 38,725,762.17 +40,019,544.93 $49,688,940.68 8,052.23 135,577.28 12,931.00 26,808.66 21,162.76 +2,928,133.50 138,584.34 36,146.56 +803,009.66 671,301.28 - - LASS, Potential further loss +79,290,620.43 30,866.49 +176.47 - - -169,451.94 - 977,157.63 besed en appraisal March 32, 1943 *116,074,897.66 +30,716,163.17 4,044,030.66 Net profit or loss (*) after (183,387,600.3) 8,009,599.00 44,061,875.59 $128,999,561.11 376,761.08 106,720.79 +3,107.53 26,708.68 21,161.75 +1,431,917.53 -3,523,291.13 130,584.34 38,146.56 671,301.2* appealed of March n, 1943 General Committies intedual Foreign Pursians Program Chaven Find mis Fire Teas and Crimern Indiber Purchase Ford and Description Prines Dates Vetch Purchase Stary Program Other Program Procrem Tenans "chair Program Products Imme - - 15,851.59 - - 747,546.27 - Interest en loans purchased 287,432.29 20,751.28 36,191.73 7,650.00 15,483.20 - - - . 52,630.07 - - - Internet on loans not purchased - - 1 - - - Internet or loans to Secretary - - -,m 1501.00 14.33 .71 U.P. 7.14 667.04 - - ,28 1 of irrinitore 80, PS 56.72 74.05 57,07 8.17 15,014.40 22,195.29 15,205.01 Interest or funis with N.F.G. 4,243.25 225.66 1,094.12 See footnite to doncerning application of Income and excende on the Deneral - - - - interest income - - - 1 , - 1 - - - - - 1918-39 Cotton - - - - - - 1 - - - - - : 1/15-36 Pooled Cotton I - - - - . - - - - 1-32-36 Tobacco - - - . 69,743.89 21,057.61 671.93 - Brut sold to F.S.C.C. 1,717.40 5,567.25 57.95 0,31 16,435.47 Total Interest income 191,756.39 20,000.00 104,915.92 - - - - . 11,090,007.04 - - - Income - - , - - . - - - - - Tit an sales of rubber , - - - - 94,147.90 Compotities Purchase Prime (other). - - - - , - - - mark-up on Lobence actd - - - - - - - . - salve assis-up on A.S.P. Program - - - . - - . Sales mark-vo DEL O.C.P. Progres - I - . - - income 1941-62 Com - - 611.40 12,328.94 17,388.91 127,309.48 64.16 - - = overpayments by 76,64 - - - - - . protocers - - - 1 14,16 11,090,007.04 106,478.84 127,309.48 - - - 17,199.0 Proceed sales of loose betten 611.60 76.64 - - - - - Total miscellaneous Locame - 171.38 74.47 11,107,321.51 176,270.73 18,46.02 127,901.41 Total Income 191,756.39 20,779.12 100,002.56 1,777.00 5,107.25 630,253.06 367,197.45 16,091.00 - = 200.31 114,398.45 - - 3,151.16 4,130.01 585.70 1,2%.66 1,611.00 156.78 183,748.93 771,596.19 216,410.79 10,666.95 - - Interest expense $1,871.30 230.45 467.60 (%.10 Administrative expense 1,104.91 503,147.30 1,001,857.15 27,158.81 27,215.14 1,601.05 824.0 1,72.44 2,291.10 357.00 - - Total wagense 79,026.44 4,766.67 5,001.86 565,161.62 100,622.60 1,600 -1,618.72 -287.12 10,604,175.13 - - Net Income or expense (*) 113,669.75 16,632.95 104,010.70 - - - - +3,117,230.75 - -$4,144,067.86 - - - $12,165,265.73 Auto Li-vidation rains - - , 4,144,067.26 - 2,131,595.29 - - +1,751.39 $175.76 - . 12,165,265.97 +1,117,138.75 Liquidation Innome . - - Net liquidation - +1,751.79 1175.78 - +3,462,300.17 100,822.60 4,344,007.84 42,431,595.00 Net profit or loss (+) tefore 10,604,175.13 12,990,846.65 appraisal of March n, 1963 112,649.93 12,701.46 103,934.94 min 1,856.81 +28 LEIS+ Potential further loss 4641,617.56 based - sporated n. 1%) Net profit or lass (*) after 30,604,175.17 11,172,264.07 71,662,500.17 100,822.40 +14,144,067.86 approved of March n, 1/965 $112,660.94 12,90.56 $10.00 11,756.00 12 N Indicates leases Internet - has here propated to the various classes of I-ams the commition) en the casts of the monthly balan understand in relation to MM services STATEM balance of leans outstanting. Prurated - the verime commodities CR the harts of leter expense deteribution. of $2,477.58 credited for Less - a.c. (nther). of $220,350.99 tradited - Sam for Loss n.c.p. - of 816,236,804.53 credited to for Loss O.C.F. Reducive of $4,707,569.60 charyed to "lassive for Lass O.C.P. Endowive of $2,847,731.43 charged % for Loss S.C.P. Phone.* Regraded Unclassified STATEMENT OF COMMON IT LOANS 360 EXEMPT D M. OF MARCH R. 1963 BOOK VALUES (ADJUSTED) APPRITSAL OF COLLATERAL COMMUNITIES Principal, Accrunt QUANTITIES including APPRAISED Interest Account Number VALUE, Charges Paid due C.C.C. and ditime Changes Total Mailer Unit Cost, The one Average Estimated Loss Parlay Legan Years Charges Market Value Vard 11, 1943 1940 Barley - Farm A 1920 Barley - Resealing Program $1,707.41 $126.36 1,557.94 - $1,833.75 1941 Barley . Form A 115.31 5,381 Bushel: 11,033.75 - - 72,627.05 - 3,195.60 1,673.25 1941 Barley - Resealing Program 4,749 Bushale 1,673.25 - 371,533.21 - 75,622.65 - 1962 Marlay Form A 16,347.44 167,990 Bushels 75,822.65 - - 387,880.65 - 1942 Barlay - Form a 63,316.09 733.46 051,030 - 387,880.65 - 64,069.55 - 6,586.11 76,29 116,662 769,05 Sushele à 66,069.53 - 7,450.45 - 517,327.81 20,594.44 13,494 Bushels 7,450.65 - Gern Loang: . 788,05 538,710.30 1938-39 Corn 538,710.30 - - 1939-40 Corn 3,108.27 - - 152.57 3,108.27 - 10,081 Pushels 1938 Crop, 1939 Crop (Bassaled) 1,108.77 . - - 7,365,997.50 580,116.26 152,57 225 Pubels 152.57 - 1940-41 Corn . * 423,858.97 20,454.42 7,946,113.76 11,070,785 Bushels 7,493,299.82 - 1941-42 Corn - 2452,013.94 2,901,484.91 39,785.66 444,313.39 687,322 Bushels 77,324.04 444,268.97 - 1942-43 Corn 44.12 305,994.00 2,753.95 3,020,594.61 3966,203 hatels 2,997,895.72 - 22,600.09 - 11,000,596.22 308,747.95 643,110.29 392,702 Pahels $299,543.74 9,204.21 Cotton Loans: 79,324.06 11,723,030.55 10,038,725.35 299,563.74 484,761.46 1938-39 Cotton 4,788.20 1940-41 Cotton 1,623.87 80,00 9,839.65 6,492.07 80 1941-42 Cotton 454.57 Dales 1/6,492.07 - - 228,00 45,530,509.51 1,537,771.36 10,522.22 22€ Bales 1/10,522.22 - . 1942-43 Cotton 826,313.62 158,935,781.73 1,487,266.46 47,094,594.49 657,025 Dates 46,402,723.49 - 1942-43 Cotton - Farm Storage 1,043,901.95 1,491,871.01 719,519.25 171,466,950.14 5,849.65 $3.10 725,432.00) 2,020,487 Sales 215,200,438.34 2/172,192,362.14 + . Plasseed Losner 3,032,965.91 1,870,586.67 220,103,990.92 218,612,119.91 - 10°168'167'1 1941 Flasseed Form 7,607.61 284.34 1941 Flasseed - Form B - 52.85 7,091.95 4,426 Pushels . - 1.96 7,091.95 - 1041 Flasseed Resealing Propres 2,698.72 54.83 = Bahele 54.F) . - 100.00 1942 Flaxsed Form A. - 18,953.26 2,799.60 1,969 Bushets 2,799.60 - - 239.66 1942 Flaxseed - Fore B - 19,192.90 6,116.11 8,30 Bushels 2/14,192.90 - - 77.34 160,77 6,354.22 2,753 Patela 6,354.22 - - 35,428.55 704.18 160.77 Grain Jonghum Loans: 35,293.50 36,293.50 - - 1961 Grain Sorghum Form A 764.09 40.FF - 1962 Crain Sorghim - Form A 804.97 2,230 Bushels 804.97 - - 3,337.13 16.43 - 3,253.56 6,176 Bushels 1962 Grain Sergbus - Form 9 3,353.55 - I 1,666.13 13,67 119,36 1,799.16 3,141 Bushels 1,729.16 , , 5,767.35 70.9€ 119,36 las Leans: 5,057.69 5,957.69 - - 1940 Rye - fore A 348.53 4,01 - 353.34 306 Pugeria - - 1940 Rye - Ressoling Progres 22,482.74 310.83 - 22,793.57 50,244 Bushels 22,793.17 - - 1941 Rye - Form é 39,627.54 758.22 - 40,385.75 68,720 Buesta 33,300.00 6,986.07 1941 Rye - Resealing Promo 197,263.60 3,712.56 - 203,078.25 350,604 Dushels 201,604.61 1,473.65 1942 figre Form è 36,590.13 431.36 - 37,021.49 19,001 Bushela 29,118.03 7,903.46 1962 fgre - form B 2,985.77 38.22 268.69 3,2 2.68 3,500 Bathela - 202,057.00 635.32 301,300.31 5,356.10 268.69 306,925.10 224,751.52 65,175.00 16,998.50 Tutance Loans: 1940 Dark Fired 178,842.35 P,199.80 115.20 107,357.35 1,023,850 Penda 182,695.79 - 4,861.36 1941 Dark First 1,283,378.97 29,801.77 3,198.25 1,316,378.99 6,624,840 Toanto 1,04,00.59 - 1,908.60 1,462,221.32 38,001.57 3,513.45 1,303,736.34 1,496,966.13 - 6,770.16 Purpentine - Roaln Loange 1938 Turpentine and Rosin 736,372.58 183,926.64 3,515.91 923,815.13 28,111,294 Permis (Bostn) - 5,986.90 1939 Turpentine and Besto 363,889.49 29,095.63 1,660.45 394,454.57 13,479,506 Fermits (Reain) 365,200.40 - 9,256.17 1940 Turpentine and fostn 2,889,499.49 749.94 15,991.10 2,906,240.43 115,663,787 Founts (Fostn) 2,503,511.92 , 402,724.51 1941 Turpentine and Hosin 1,589,381.68 52,212.70 R,745.84 1,650,340.22 67,404,796 Pounda (Roein) 1,471,152.17 - 179,188.05 1942 Turpentine ed Rostin 3,370.69 2,120.23 77.05 5,567.97 29,093 Pounts (Posin) 5,567.97 - - 1,222 Gallens (Turenting) 5,582,513.93 268,105.04 29,799.35 5,283,260.69 - 5,880,418.32 597,157.63 Meat Leange 1439 Wheat - Form À 1,315.44 1,385.73 2,511 Bahala 1/1,385.73 - - 70,29 - 5,347 Bushele 3,811.87 - - 1940 Whest Form A 3,612.50 199.37 . 3,811.57 1940 Rest From I 488.67 26.93 515.60 543 Bashele 1/515.60 - - - 3,046.70 58,245.90 70,785 Bushels 1/58,245.80 - 1740 thest- Resealing Program 55,199.10 . VI theat. Form A 2,072,629.57 110,565.59 2,235,279.92 2,186,442 Public 2,179,645.34 55,434.58 $2,284.76 1,132,785 Righels 1,047,796.35 - 45,194.78 41 theat Form a 976,321.00 24,631.35 92,038.78 1,092,991.13 17,043,183.23 429,977.85 866,727.35 18,339,888.43 17,334,548 Pushels 17,293,727.87 - 1,000,260.56 41 Wheat - Resealing Program 6,373,723.10 6,338,095 Bushels 1/1,104,133.52 2/4,487,823.93 781,765.65 4.2 theat - Form & 6,306,548.30 67,174.50 12,049,854.48 Benels 1/47,014.30 2/10,943,291.61 1,199,548.57 - Whest Form E 11,469,200.65 122,165.30 458,488.53 1,527,820.25 40,155,696.06 17,510,960.00 37,928,298.46 699,577.35 E: 150 Loanu 2,160.78 242,247.93 147,906 Bushels 242,247.93 - . 240,087.15 - - Soybeans 256,935,664.11 17,875,679.70 5,605,662.90 TOTAL COMPLETT LOANS 272,273,979.64 4,710,646.64 3,512,380.63 280,497,006.71 a in firsl liquidations eith comparatively nominal accounte in both inventories and monetary values, subject to investigation and adjustment. These programs ware apprated at book min M at "arch 3, 1943, pending determination of final adjustments, 2/ crent year programs, appraised on basis of book value or average partnt value, whichever is lower, in accordance with premise ested en page of report. Regraded Unclassified volunteer* and "Excess" sheet in these current 7542 progress enlued at heck value, due to activeely low loan rate on with ment. 361 COMMITTY CHFOIT CORPORATION STATIVINT (If COMMUNITY POSE ARD PURCHASE PARCH n. 1%) Pook Values (Adjusted) of Collateral Commodities Principal Account Total Quantities Approised Value Extimated including and charges paid other charges less Funter 0-16 Cost plus con Average vear's charges seriet value March n, 1943 DISCOUNTY POOLS: 1940-41 Barley Pool $2,052.98 1941-42 Barley Pool *2,052.98 216,791.56 3,470 Pushels $38,019.74 1/*2,052.98 1942-43 Barley Feel 254,811.30 460,175, Bushels 1,035.90 224,184.86 $30,626.44 - 1,035.90 1,825 Rushela 2/41,028.07 7,02 219,880.44 38,019.74 257,900.18 - - 226,237.84 1,028.07 30,634.27 1938-39 Com Poel 40,548,654.42 1,715,148.27 42,263,802.69 51,978,400 Hushele 19,752,046.87 - 2,511,755.82 1934-35 Cotton Pool 66,628,587.70 242,515.06 66,881,102.76 617.771 Males 1937-38 Cotton Pool 53,234,847.67 - 13,646,255.09 137,523,344.37 841,312.46 138,364,656.83 1938-39 Setten Peol 2,524,288 Males 122,882,339.84 - 15,482,316.99 3,000.30 12.14 3,012.44 51 Males 1/3,012.44 - 204,154,932.37 1,093,839.66 205,248,772.03 - - 176,120,199.95 - 29,128,572.08 1939-40 Pore Peol 1,163.54 - 1,163.54 1,560 Rushels 1/1,163.56 - - 1940-41 Rye Peel 3,825.28 - 3,825.28 6,020 Pushels 1/3,825.28 - - 1941-42 Rye Pool 305,988.67 41,771.60 347,760.27 505,587 Pushels - 289,493.88 58,266.39 310,977.49 41,771.60 352,749.09 - - 4,908.82 209,493.60 18,266.39 1939-40 Wheat Pool 2,828,221.25 150,917.80 2,979,139.05 2,839,484 Pushele) 1940-41 Whest Pool 84,642,486.00 4,027,130.00 88,669,616.00 61,947,617 Pushele) 1941-62 Whest Pool 171,557,098.65 4,900,737.80 176,537,836.45 (140,754,070 Pushels) 259,027,805.90 9,158,785.60 268,186,591.50 (225,541,171 Pushels) 247,251,89.23 - 20,934,782.27 1940 Dark Fired Tobacco Pool 180,763.16 1,109.45 181,872.61 1,012,560 Founds 170,025.13 - 2,847.48 1940 Flue Jured Tobacco Peel 475,259.08 1,763.87 477,022.95 2,450,098 Permits 476,418.21 ⑉ 564.74 656,022.24 2,873.32 658,895.56 - - 655,483.34 . 3,412.22 Total Pecls 504,918,272.86 12,050,238.19 516,968,711.05 - - 464,010,766.05 290,521.95 52,667,423.05 XAMIDITIES PURCHASED: Tobacco: 1940 Five Cured 9,767,356.66 13,537.95 9,780,894.61 39,186,507 Pounte 9,689,152.09 - 91,742.52 1961 Dark Fired 2,193,097.09 6,651.26 2,201,748.35 13,036,042 Peranda 2,200,332.22 - 1,416.13 1941 Flue Cured 15,609,796.65 55,410.17 15,664,906.82 49,893,300 Pounda 15,598,795.91 - 66,110.91 1942 Dark Fired 452,723.61 1,279.95 454,003.76 1,755,804 Pounda 454,003.76 - - 1942 Flow Cured 61,063,537.66 87,135.11 61,150,672.77 125,368,822 Peunda 61,150,672.77 - - 1942 Flue Jured (Special) 28,073,085.28 54,552.63 28,127,637.01 54,146,510 Pounda 28,127,637.91 - - 257,396.38 . 257,396.38 473,479 Peunda 257,396.38 - - 1942 Burley 117,418,693.53 218,567.07 117,637,260.60 . - 117,477,991.04 - 149,269.56 When 1942 Wheat 396,125.39 - 396,124.39 361,740 Bushels 396,124.39 - - 112,718,939.49 093,982.34 113,612,921.83 Schedule Mr. 1 102,450,406.30 10,520,899.97 641,617.56 Agricultural Supplies Purchase Program - 105,896,516.75 Schedule No. 2 105,896,516.74 - - Forwign Purchase Programs 105,896,516.75 . General Commodities Purchase Pregres - 620,733.22 - - Dairy Products 620,733.22 - 620,733.22 852,643,823.00 - - 851,643,823.08 . - 851,643,823.08 - Other Commodities - 852,264,456.30 Schedule Nr. 3 852,264,556.30 - - 852,264,556.30 1,189,807,380.07 - - 1,178,485,593.78 10,520,899.97 800,887.12 Total Purchases 1,188,694,831.48 1,112,549.41 Total Feels and Purchases 13,162,987.60 1,706,776,091.92 - - 1,642,496,359.83 10,811,421.92 53,468,310.17 1,693,613,104.32 V Programs in final liquidation with comparatively nominal amounts in beth inventories and areatary values, subject te investigation and adjustment. These pregram - appraised at boek values as at Producer's Current year Feel, program, representing appraised commedities on basis of delivered everage by market producers value une in accordance maturity with of their premise notes, cited such en committies page to be marketed by the Derreration, and upon firal liquidation any ever-plea,17 any, to March 31, 1963, pending determination of final adjustment of report. be distributed to the participating producers. Regraded Unclassified 362 CREDITY Statement of Loans Held by Lenting Agencies and Value of Pledged an Lees Due to Apprecial, " of March 1963 2 Retimated Accrued Interest Principal, Approisal of Dellativel Commodity Estimated Accrued Including Due Banks The Tarehcuse Charges Charges Paid as of Total QUANTITIES APPRAISAL VALUE Patiented Less " of March 31, 1963 to March 31, 190 March 31, 1943 2001 plus FRB image bards 33, 1962 Musher Unit Year's Charges Market value 196 Barley - Form A $13,880.23 8306.32 8306.32 190 Barley - Form B - 2,548.08 56.23 514,492,87 22,000 Pushala 56.23 $14,492.87 - - 1962 Barley - Form A $599.79 4,377,194.07 26,263.17 3,260.33 7,382 Bushels 26,263.17 3,028.11 - $232.23 1962 Barley - Form B - 642,927.10 3,857.56 3,857.56 4,429,720.41 8,295,923 Tushels 1/4,429,720.61 - - 70,247.32 5,036,349.48 30,483.28 720,649.54 1,202,865 Pushale 720,599.54 - - 30,483.28 70,847.11 5,168,363.15 5,168,130.93 232.22 1960 form - Form A 8,624,381.01 290,629.83 290,629.83 - 190 form - Form A 23,874,065.25 9,205,640.67 14,146,868 fushale 9,044,376.56 - 161,264.11 415,997.41 415,997.41 - 1942 Com - Form A 40,779,393.03 147,705.66 24,706,060.07 32,746,706 Pushale 24,648,173.64 - 17,886.43 147,705.66 - 73,277,839.29 41,074,004.35 52,763,110 Pushels 1/40,246,401.91 - 828,362.64 854,332.90 854,332.90 - 74,986,505.09 73,934,991.71 1,047,583.38 1941 Jotton 9,000,779.71 160,904.35 220,827.35 396,732.31 1942 Cotton 9,779,243.72 140,255 Nales 9,683,523.64 - 95,720.08 51,330,772.93 206,729.41 206,729,41 311,051.88 52,055,283.63 610,654 Rales 52,055,283.63 - - 60,331,352.64 367,633.76 427,556.76 707,784.19 61,834,127.35 61,738,807.27 95,720.00 1962 Flaxred - Form A 1,279,408.09 7,676.45 7,676.45 - 1942 Plasseed - Form I 1,294,760.99 582,442 flushels 1,294,760.99 - - 633,472.32 5,000.83 5,000.83 21,573.16 865,067.14 370,037 Pushale 865,047.14 - # 2,112,880.41 12,677.28 12,677.28 21,573.16 2,159,808.13 2,149,600.13 - I 1942 Orain Sorghum - Form A 14,291.81 49.34 49.34 - 14,390,49 28,993 Bushala V 14,390.49 - - 1942 Orain Sorghun - Pora a 2,462.42 8.50 8.50 151.13 2,630.55 3,977 Pushals - 1/12,454.00 176.47 16,754.23 57.84 57.84 151.13 17,021.04 14,390.49 7,456.00 170.47 1941 Rye - form & 15,153.77 325.08 325.08 - 15,803.93 48,582 Bushele 15,003.93 - 1942 live - form A 2,673,506.07 12,854.80 12,854.80 - 2,699,215.67 4,470,719 Pushels - /2,206,375.65 492,837.02 1962 live - form 9 79,393.68 381.75 30.75 7,136.00 87,293.98 146,246 Bushels - 70,582.58 16,711.40 2,768,053.52 13,561.63 13,561.63 7,136.80 2,802,313.58 15,803.93 2,276,961.23 509,568.42 1942 that - Fors A 164,295,297.09 1,168,072.04 1,168,072.04 I 166,631,441.17 140,434,365 Pushals - 1/142,137,852.21 24,293,588.96 1942 theat - form a 193,078,552.46 1,372,709.16 1,372,709.16 15,777,431.66 211,601,402.44 166,078,228 Pustele - 1/180,627,257.38 30,974,145.06 357,373,849.55 2,540,781.20 2,540,781.20 15,777,431.66 378,232,843.61 322,963,100.49 55,267,734.00 1962 Scybeans 5,279,160.84 24,096.00 24,096.00 - 5,327,352.84 3,334,109 Pushels 1/ 5,327,352.84 - - $506,196,639.96 $3,843,623,89 $3,903,546.89 $16,584,924.05 $530,528,734.79 $148,363,285.30 $325,244,524.90 $56,920,924.39 These loans are held by banks and lending agencies under contracts to purchase whereby the Comodity Credit Corporation la obligated to purchase the notes when presented prior to acturity dates at the interest rates above. late of Interest Estimated Dates Commodity Maturity Due Banka Due 2.9.2 Interest Ascruale 1941 Barley, Form A April 30, 1942 1-1/2% 1-1/25 10-11-01 through 3-31-43, inc. 537 days 1941 Barley, Form B April 30, 1942 1-1/2% 1-1/2% 10-11-41 through 3-31-43, inc. 537 April 30, 1943 1-1/25 1-1/25 11-6-62 through 3-31-43, inc. 146 1942 Barley, Form A 1942 Barley, Form B April 30, 1943 1-1/25 1-1/25 11-6-62 through 3-31-43, inc. 146 1940 Corn, Form A August 1, 1943 1-1/25 1-1/25 1-1-0 through 3-31-0, Inc. 820 2-1-42 through 3-11-0, inc. 424 1941 >em, Form A August 1, 1944 1-1/25 1-1/25 1962 Corn, Form & August 1, 1945 1-1/25 1-1/25 1-3-0 through 3-31-0, the. 2/eal/ 1941 Cotton July 31, 1942 1-1/2% 1-1/21 11-1-0 through 7-31-43, inc. 273 < 2 $ 6-1-42 through 1-31-0, Inc. 243 July 31, 1943 1-1/25 1-1/25 12-24-42 through 3-31-3, int, 98 1962 Otton June 30, 1943 1-1/25 1-1/21 11-6-42 through 3-31-0, ins. 146 1962 Flaxseed, Form A June 30, 1943 1-1/21 1-1/25 11-6-42 through 3-31-0, ino. 146 1942 Plaxseed, Form B 1-1/26 1-1/28 1-7-3 through 3-11-0, Inc. B4 190 Pride Sorgham, Form A June 30, 1943 1-1/25 1-1/21 1-7-63 through 3-31-0, inc. BA 1962 Frain Sorghun, Pers B June 30, 1943 190 "ye, Form A 1-1/25 1-1/25 10-26-41 through 3-31-43, inc, 522 April 30, 1943 June 30, 1943 1-1/28 1-1/2% 12-5-62 through 3-31-43, Inc. 117 1942 79, Form & 1-1/21 12-5-12 5-62 through 3-31-0, inc. 117 1962 178, form B June 30, 1943 1-1/25 1-1/25 1-1/25 10-10-42 through 3-31-0, inc. 173 1942 Thest, Pura A April 30, 1943 April 30, 1943 1-1/25 1-1/26 10-10-42 through 3-31-43, inc. 173 1962 thest, Form B 1962 cybeans June 30, 1943 1-1/25 1-1/25 12-11-42 through 3-31-6), inc. 1/1114 Current year programs, appraised on bases of book value or average market value in accordance with premise cited en page of report. recisate. Regraded Unclassified 363 COMMODITY CREDIT CORPORATION EXHIBIT 0 STATEMENT OF MISCELLANEOUS LOANS (Other Than Comodity Loans) AS OF VARCH 31, 1743 BOOX VALUES (ADJUSTED) Accrued Accrued Interest Narehouse and Estimated Loss BORROWER Principal Due C.C.C. Other Charges Total Approisal Yelue March 31, 1043 P.CILITATING LOANS: Virgin Islands Company (Sugar) 1 125,227.43 3 439.77 $ - 3 125,667.20 $ 125,667.20 $ - Broward County Fort Authority 22,457.49 4.39 - 22,541.08 22,541.88 - Pan-American Shell Corporation in 137,454.21 - - 137,454.21 137,454.21 - Bar Somp Industrise, Incorporated 67,512.00 116,68 - 67,628.68 67,628.66 - El 352,651.13 $ 640.34 $ $ 310,291.97 : 353,291.97 1 - - EQUIP ENT LOANS: Fiber Flax Equipment $ 307,372.00 $ 4,276.37 8 - : 311,648.37 : 311,648.37 $ - Poanut Squipment 1,064,630.14 175.01 - 1,064,805.15 1,064,505.15 - Peanut Earehouse 603,510.12 9,087.70 - 612,598.02 - 612,598.02 - 12,894.15 - Enspaeed Equipment 12,894.15 - - 12,074.12 $1,988,406.41 $13,539.23 $ $2,001,245.69 $2,001,945.69 $ - - TOTAL MISCELLANEOUS LOANS $2,341,057.54 $14,180.12 3 $2,355,237.66 $2,355,237.66 5 - - Regraded Unclassified - amount AMERICAN . PATIENTS - - - INFORMA YES - some - THE TREATMENT 45 PER - - 13, 1443 Consistive Loss Analgeta of Payments for C/C/C of - No. I - Approval - designts of - betters - a - 3 March 31, 2962 Firms Secretary of is Amerated beaut, Apprical March 31, no - S1, 1943 befiels Definds - i - to formal I II, 143 - - have 31, 190 Agencies (Dation - 13 (Drives - #) So., 31 Total - 43 (biles M. 10 - 4) (Columi - 1) - - #3 TON use FROM Professional Lease: 1933-34 Detition 1936-35 Certifies 815.00 $461,700.51 1935-36 (48,121,800.66) (62,567,603.56) - 1037-38 34,621.71 65.04 55,472.35 - - 47,M0,MVT.30 00,458,000.36 55,472.35 . - 2139-40 Collex 8,038,268.56 233,487.00 16,140,607.25 (15,482,368,00) - - 38,605.87 (2,438.65) 11,007.22 4,771,755.84 - - 5940-68 Cort/Lom 1961-42 Col/tum. 7,953.85 35,987.32 837,061.44 . , - 489,165.05 (975,184.98) 837,061.89 - 150-43 805,751.44 1,501,571.16 009,753.64 (1,50,981.00) - 805,751.44 0,00,ms) (29,138,572.00) (93,720.00) neil - 2933-34 Caties 229,627.51 - 3936-35 Setten 229,627.51 56,375.28 - - - , - 2,75.3 5,773.38 - - - 205,993.70 - 205,002.74 - - - - - Twice (30,726,163.17) (29,128,572.00) (95,780.00) - sews PROCRAMS 1535-34 Com 992,655.36 - 1934-35 Care 180,455.36 992,633.36 - - 32,423.63 - - - 1935-36 Com 32,923.43 32,927.43 - - - 70,751.22 - 1936-37 Com 78,751.81 - . - - 1,80.9 - 1937-38 Care 1,80.53 (4,182,614.64) 1,800.53 - - 114.76 1938 Core, Reflamed . - (528,890.06) 166,133.58 1938-39 Core (362,756.68) (279,891-14) (6,81.3) = (30,199,498.32) 1939-40 Core (1,665,09.41) (1,212,625-47) . (8,006,950.62) 1,706,145.1) 1960-43 Com (6,302,805.49) (525,358.63) 660,156.33 134,795.70 2961-42 Core (262,007.11) (4.42) (100,779.18) (8,910,613.02) 7,750,003.00 (1,117,419.4) 2962-43 Core (77),400-93) (690,033.35) (600,433.35) 146,639.70 (9,206.21) Total (51,607,954.98) 13,363,677.37 (38,244,277.61) (4,044,230.54) (7,50,755.0) MEAT LOAF PROGRAMS 2538-39 Missi (3,362,070.37) (1)Jul) (5,992,086.26) - - - - 1979-40 thest 235,762.63 = Meet (6,666,261.75) - 1561-42 New (44,008,106.06) (12,136,560.85) - 1863-43 Meet 1,00,201.63 (236,900.36) Total (M,663,320.30) (79,200,626.43) (55,367,736.00) LOAN 1965-41 (318-46) 26,192.36 . - carley 30,138.80 13,156.90 16,153.05 (30,058.66) - (298.20) IND-O - 40,489.46 40,699.45 (743) - (7-0) - Total M,447.60 - (239,32) - this 1/40-0 Grade Targinal 100.95 (197.01) 12,90 12.00 - - - - 1963-42 Grate Surghine 281.57 (1,85-4) (1,4%2)) (2,0627) - = . Cireda (67,62) (67-62) 108.95 (04) - - (276-47) Total 451.92 (3,480.51) (1,89,51) - . (279-47) en LOMI Type (3,400.58) (29,703) - - . - I/NO-G lige 36,586.40 27,126.19 65,811.00 15,03.00 - 1961-42 the (47,657,65) (51,801.32) (99,538.97) (3,01,8) (66,986.11) (8,699,79) (M,264.39) Rye 12,01.50 (518,007.20) Total (35,697.48) (513,143-23) (566,590.71) 15,222.50 (16,998.50) (38,264.39) (909,548.42) LOAS nome Scybeane 500.45 655,72 1,169.16 1,165.18 - . - 1/82-43 25,641.55 25,601.55 . - . Total 26,367.26 26,06.72 35,056.71 - 1 - - PLASSED LOAN 1,657.52 0,100.00 - - 1941-07 6,532.52 - 1943-43 Flassed - 11,754.01 13,256.20 13,254.00 - - - . Total 6,532.30 14,811.13 11,446.04 3,000 - - - - CRIMM CLOVER LOAN (44.33) (41.33) (125-8) (125.8) . - - . MII LOAN 2934-35 Turportize - Rowin (1,410,236.36) - (1,415,236.26) (1,410,236.26) - - (1,879,377.15) (1,879,780.15) [5,986.90] - . 3934-39 - - (2,006,760.99) Terporations and 107,660.71 (735,506.73) (726,332.36) (9,254.17) (9,254.17) - - Termetine - base 606,693.69 203,860.35 900,556.44 1,303,2015 (409)728-51) . - and Bowin 2,09.5 (143,113.05) (121,08)-51) 98,106.54 (179,108.05) (179,198.05) - - 1942-0 - 49.48 0.00 49.45 - - Total (3,158,301.41) 313,601.00 (1,265,879.53) (2,MAN,521.00) (997,197.43) (997,197-AS) - - TOBACCO LOME PROMIS- - - - - 3335-36 - 2137-30 Tobacco (2,556.47) . - (1,554,97) (1,556.97) , , 1939 Remain (2,996.05) (2,996-95) - - (2,996-95) - . 1939-40 Buf. (136,138.59) (7,865.09) (163,905.60) 1939-00 F.C. 1,068,801.54 (336,789.21) $54,000.00 - $54,000.00 Del. 33,262.46 3,298.07 36,660.93 64,189.97 (7,709.5) (4,861.50) (2,867.48) - 000,618.83 (94,307.26) a 1940-41 Tobacco F.C. (6,803.33) 877,151.56 Tobacco Burlay $1,307.00 57,814.00 - (1,492.11) 57,814.42 1961-43 Total D.F. 10,147.75 $1,428.32 61,576.47 64,000.00 (1,324.79) (1,908.60) (1,416,13) . 1941-42 Tobacco F.C. 265,680.00 (149,780.46) 115,710.57 16,43.48 (66,130.00) (66,118.91) - 1/943-42 Nursey 110.93 12,062.13 13,772.78 13,372.78 - # Clgar Last . 19.25 399.25 199.75 1 - - . (88.76) - I 3562-43 Twice Def. - - IND M. 162,872.55 - - (164,872.55) (164,872.15) - - 1963-L) Thise - (30)-11) (30-11) - . - - IND - Pertipe (38,17) (10-17) (M.17) Total 194,000 (477,015.58) (278,805.23) (16,0640 (1,770,26) 04,40.20 - NOME 180,605.57 150,605.37 - 160,605.57 - - - - 4,327.61 4,322.61 4,322.66 - - I - - MINIM LOMO 50,309.97 ⑉ $1,84.77 50,200.77 - - 1 - EL jours (077,689.00) - . - - - PSCAR LOANS 11,877.00 (3,751.39) 14,075.17 - - - - an - 1,131.60 - 1,10.42 1,13.42 - - - - - - 705,514.47 . 105,514.97 - - - - PM ARE - - (12.30) (SQUI) (962.63) - a - - CAMA - N.M 130,005.00 196,005.00 - - - - (10,299.30) - - - - - - - - - 18,08.00 - - - - amounts - DELIVE a - - - - PINTAIN - - - 132,699.11 111,480.35 - - - (7,38,7%4) . 1 - - - - PROCESS # , # - - - - # 1 - - nen - - (1,43,385.8) 1 - 1 - - all Progress - Questing - I . Tenal - - Regraded Unclassified 365 COMMODITY CREDIT CORPORATION INVENTORY OF COMMODITIES PURCHASED UNDER THE AGHICULTURAL SUPPLIES PURCHASE PROGRAM AS AT MARCH 31, 1943 SCHEDULE 1 Appraisal of Collateral Estimated Purchase Accrued Estimated Commodity Cost Storage and Total Quantities Appraisel Value Loss Other Charges March 31, 1943 Number Unit Coet Floo One Average Year's Charges Market Value Alaska Spruce Log Program $1,265,141.07 - $1,265,141.07 (Unabsorbed Costs) $1,265,141.07 - - Bagging - Cotton 2,107,689.42 $1,747.58 2,109,437.00 21,208 Bales 2,109,437.00 - - Bags - Peanuts 221,349.81 - 221,349.81 1,464,497 Bags 221,349.81 - - Castor Bean Seed 82,862.60 - 82,862.60 1,899,785 Pounds 82,862.60 - I Cotton - American Egyptian 238,072.19 - 238,072.19 1,151 Bales 238,072.19 - - Cotton Linters 22,109,093.58 - 22,109,093.58 457,002,032 Pounds 22,109,093.58 - - Cotton Seed Cake and Meal 330.15 - 330.15 10.38 Tono 330.15 - - Dairy Animals 881,234.93 - 881,234.93 94.40 Cown 881,234.93 - - Hemp Seed 1,760,500.91 - 1,760,500.91 9,150,163 Pound 1,780,500.91 - - Hybrid Corn Seed 70,614.60 223.31 70,837.91 142,848 Pounds 70,837.91 - - 2 Total 28,736,889.26 1,970.89 28,738,860.15 - Naval Stores: 4,954,808.26 19,915.54 4,974,723.80 7,598,435- Gallons - 4,004,651.91 370,071.89 Turpentine Rosin 6,168,000.94 19,792.79 6,187,793.73 174,154,816 Pounds - 5,916,246.06 271,545,67 Total 11,122,809.20 39,708.33 11,162,517.53 10,520,809.97 641,617.56 Peanut Seed 579,252.81 579,252.81 7,494,577 Pounds 579,252.81 - - Pyrethrum Seed 1,359.07 1,359.07 450 Pounds 1,359.07 - - 49,731,435.86 29,300,655 Bushels 49,731,435.96 - - Soybeans 48,879,132.74 852,303.12 7,239,394.04 7,239,394.04 345,605,395 Pounde 7,239,394.04 - - Soybean Cake and Meal 36,813.77 17,233 Bushels 36,813.77 - - Soybean Seed 36,813.77 Vegetable Oils: Cottonseed 011 13,857,026.72 13,857,026.72 109,670,062 Pounds 13,857,026.72 - - 771,114.58 5,951,575 Pounds 771,114.58 - - Peanut 011 771,114.58 1,495,147.30 1,495,147.30 12,719,066 Pounds 1,495,147.30 - - Soybean oil Grand Total $113,612,921.83 1/6102,450,404.30 $10,520,899.97 3641,617.56 $112,718,939.49 $893,982.34 Appraised at book value as at March 31, 1943. Regraded Unclassified 366 COMMODITY CREDIT CORPORATION SCHEDULE NO. 2 INVENTORIES OF COMMODITIES PURCHASED UNDER THE FOREIGN PURCHASE PROGRAM AS AT MARCH 31,1943 PURCHASE COMMODITIES COSTS QUANTITIES FATS AND OILS: Babasau Kernels $ 1,203,144.95 19,593,812 Pounds Babasau Oil 1,146,823.10 9,289,365 11 Cashew 011 663,610.60 3,145,888 = Castor Oil 773,138.10 6,732,243 = Castor Seed 840,622.60 18,643,216 = Cocoanut 011 9,056,889.20 108,442,296 = Copra 3,395,927.40 71,359,936 = Linseed Oil 2,006,951.25 20,310,613 = Menhaden Oil 359,039.00 4,116,126 " Neatsfoot Oil 48,419.90 343,145 E Citicica oil 1,087,980.15 4,423,038 n Ourioury Kernels 13,679.65 224,356 . Palm Kernel 011 71,744.61 863,360 - Palm Oil 2,441,939.20 34,830,163 - Rapeseed Oil 1,356,735.60 13,095,668 = Sardine Oil 2,421,591.65 27,087,857 = Seal Oil 28,090.83 374,080 # Sesame 011 121,104.54 908,459 = Sperm 011 13,336,370 = 972,450.75 Sunflower Oil 2,747,133.20 28,881,500 = Tallow 222,336.70 3,866,725 M Tung Oil 23,767,839 = 8,362,951.85 Whale 011 2,084,066 # 142,543.12 Total 39,484,847.95 OR COMMODITIES: Poston (Egyptian) 2,009,003.24 5,333,284 " Citton (Peruvian) 2,981,448.03 15,366,839 E 324,225 = Flax (Canadian) 125,995.58 F.18 (Peruvian) 1,349,761.40 2,904,571 = 1,477,502 - Givcerine 258,287.45 15,913.65 221,800 = ermeal 17,611.10 73,960 : enone 2,137,375,888 = "ar (Cuban) 53,808,437.98 15,032,630 # 5,845,210.37 Total 65,411,668.80 Grand Total $105,896,516.75 Regraded Unclassified COMMODITY CREDIT CORPORATION SCHEDULE NO. 3 367 INVENTORY OF COMMODITIES PURCHASED UNDER GENERAL COMMODITIES PURCHASE PROGRAM AS AT MARCH 31, 1943 PURCHASE COMMODITIES COSTS QUANTITIES Acide $ 1,253,222.80 1,363,010 Pounds Baking Powder and Soda 12,507.91 333,738 . Barley Products 209,837.08 7,538,042 # Beans, Canned (Pork & Beans) 4,355,986.80 90,369,949 . Beans Dried 18,780,542.93 333,340,738 . Beverages 3,477,811.26 9,068,412 - Biscuits (Hard Bread) 7,575,560.79 57,956,776 - Candles 16,515.91 89,680 - Carofene 119,679.96 5,467 Kilograma Cereal Products 1,941,554.08 64,165,037 Pounds Citrus Juices, Canned 1,980,791.52 23,371,979 . Citrus Juices, Concentrated 4,609,229.36 866,162 Gallons Citrus Oils 209,227.62 109,381 Pounds Concentrated Foods 49,836.06 334,920 - Condiments 150,572.35 4,161,653 . Confections - Chocolate 198,483.39 1,110,837 - Corn Starch 2,483,769.43 75,734,267 . Corn Sugar 43,566.23 850,300 " Cotton Linters 73,453.20 1,144,866 # Cotton Raw 44,596,458.00 413,925 Bales Dextrose 5,246.63 110,000 Pounds Egge,Dried Egge, Dried 103,296,032.46 93,966,068 " BEES, Prosen 1,711,213.63 3,320,111 " Egge, Shell 11,201,324.96 43,113,955 " Essential Oils 458,060.59 76,725 n Feed, Miscellaneous 1,519,730.42 59,432,197 # Fish, Canned 201,653,542 # 49,036,644.24 Fish Dried Salt 237,956.87 1,597,628 - Fish Liver 011 240,521.86 87,100 Gallons Flavorings 247,937.78 1,141,149 Pounds Flour Graham 1,041,348 . 46,087.30 Flour Wheat 7,681,659.67 285,868,748 " Fruits, Canned 6,408,713.20 67,099,965 # Fruits, Dried 25,110,169.37 146,762,208 - Fruits Fresh 1,075,529.55 11,615,202 . Pruits Pulp 38,960,141 # 3,514,022.23 449,790 - Gelatine 94,751.03 Hope 13,604.23 49,410 - Insecticides 8,343.13 133,150 . Jame & Marmalades 5,601,579 . 958,715.06 Kola Nuts 1,302.00 2,020 # lard 20,168,571.15 128,391,580 Pounds ..inseed 011 21,565,219 . 3,256,324.02 Macaroni 312,150 - 26,281.81 Valt 11,490.88 81,658 . Meat Products 267,116,258.86 849,774,575 - Vilk Condensed 625,069.26 117,987 Cases Vilk Dry Skin 20,953,957.33 133,574,198 Pounds Milk Evaporated 82,056,660.28 20,580,073 Cases 368 - 2 - SCHEDULE NO. 3 PURCHASE COMMODITIES COSTS QUANTITIES Vill Products (Butter & Cheese) 32,293,322.99 72,668,747 Pounds Naval Stores 1,288,567.01 30,319,273 Oat Cereal 1,851,113.38 49,684,120 - Oleomargarine 7,091,176.78 47,279,566 . Olives, Canned 35,000.00 180,000 - Peanut Butter 47,433.16 208,104 - Peanuts 70,750.34 799,168 - Peas Dried 10,602,076.87 160,173,845 R Pectin 354,006.64 2,375,953 . Pimientos, Canned 47,160.00 220,080 . Pomace, Dried Apple 7,468.91 135,214 " Popcorn 7,420.00 112,000 . Poultry 11,266.20 28,148 . Poultry Canned 460,616.24 378,220 . Ration 692,863.79 1,232,940 = Relish 590,647.85 1,845,256 " Riboflavin 40,460.80 67,632 Grams Rice 17,810,778.27 280,351,920 Pounds - Salad Dressing 9,672.62 55,596 # Soap 2,154,161.24 29,962,722 Sorbose . 84,598.04 41,699 - Soup, Canned 276,878.34 3,235,824 . Soup, Dehydrated 1,403,745.02 5,409,814 Soybeans Dried 121,923.63 2,793,148 # 30y Flour 1,202,629.80 20,164,025 Soy Grite 48,348,071 . 2,178,015.86 - Sugar, Granulated 22,085,341.05 434,106,421 . Sugar, Raw Cuban 1,351,728.20 47,433,685 - Syrup, Canned 430,886.80 5,815,459 Tomato Products 45,917,048 - 3,929,992.75 Vegotables, Canned 9,647,439.32 121,515,796 . Vegetables, Dehydrated 3,118,890.11 8,031,830 - Vegetables, Fresh 411,047.18 13,371,732 Pounds Vegetable 011 Products 24,940,051.34 169,358,627 . Vitamin "A" 1,774,540.19 11,157,045 Million Units Vitamin "B-1" 2,888,424.90 6,896 Kilograms Vitamins Miscellaneous 2,688.19 687 Kilograms Walnuts, Shelled 559,543.09 1,445,930 Pounds Yeast, Dry 265,018.00 490,052 . Supplies Miscellaneous: Ct : Openers 171.00 3,000 Units Serety Matches 275,375.71 1,655,700 Pounds 1,050.00 3,000 Units Special Packs 7,095.00 119,553 Pounds To let Paper 851,643,823.08 Dair Products: 620,733.22 1,294,651 Pounds Bu ter FRAND TOTAL $852,264,556.30 369 TREASURY DEPARTMENT INTER OFFICE COMMUNICATION DATE Feb. 2, 1944 TO Secretary Morgenthau FROM Mr. White HOW 1. Stabilization Fund's Gold Transactions During the three months ending December 31, 1943, the Stabilization Fund sold approximately $197.9 million in gold to foreign countries principally to be earmarked for their accounts with the Federal Reserve Bank of New York. Sales by countries were as follows: Country Sales in millions of dollars Argentina 61.849 Brazil 29.925 Cuba 15.000 Ecuador 2.468 Iran 3.000 Ireland 2.275 Paraguay .500 Peru 4.988 Switzerland 9.976 United Kingdom 50.000 Uruguay 12.469 Vatican City .499 Venezuela 5.000 Total 197.949 During the same period, the Stabilization Fund sold $9.2 million in gold to acquire local currency in India and the Middle East for the purpose of financing United States war expenditures. Sales by countries were as follows: Country Millions of dollars India 7.387 Iran 1.354 Egypt .494 Total 9.235 Regraded Unclassified 370 - 2 - The Fund purchased approximately $5.1 million in gold from the earmarked account of the Royal Netherlands Govern- ment. In order to maintain its gold balance, it also made net purchases of $237.5 million in gold from the Treasury General Fund, the gross purchases from the General Fund of $243.9 million being partly offset by the sale of $6.4 million in gold to the General Fund. As a result of the above transactions there was a net increase of approximately $35.5 million in the Stabilization Fund's gold holdings to about $42.9 million as of December 31. 2. Treasury Gold Stock During this quarter, the Treasury's gold stock decreased 237.5 million from $22,175.0 million to $21,937.5 million as of December 31. Known and estimated sales and acquisitions were as follows: Sales Millions of dollars Sold to the Stabilization Fund 243.9 Sold to industry 6.9 Miscellaneous 1.6 Total 252.4 Acquisitions Bought from the Stabilization Fund 6.4 Newly-mined domestic 3.6 Imports sold directly to mints and assay offices 4.2 Miscellaneous (coin and scrap) .7 14.9 Total Regraded Unclassified 371 - 3 - Net decrease in the Treasury gold stock 237.5 3. Total Gold Holdings of the United States September 30, 1943 December 31, 1943 Treasury Gold Stock $22,175,033,177 $21,937,509,984 Stabilization Fund Gold 7,448,075 42,907,236 Total $22,182,481,252 $21,980,417,220 The decrease in the gold holdings of the Treasury and the Stabilization Fund during this quarter was 202.1 million. Regraded Unclassified 372 NOT TO BE RE-TRANSMITTED COPY NO. / BRITISH MOST SECRET U.S. SECRET OPTEL No. 38 Information received up to 10 a.m., 2nd February, 1944. 1. MILITARY ITALY. No further information received. RUSSIA. Russians have captured KINGISEPF and NOVINKA, 34 miles S.W. LYUBAN, on LEVINGRAD - DNO railway and are also within 7 miles of LUGA. 2. AIR OPERATIONS WESTERN FRONT. 1st. Beaufighters sank a Mine- sweeper, set fire to a 5,000 ton ship, and damaged an escort vessel off NORWAY. lst/2nd. Mosquitoes were despatched: BERLIN, 12, (one missing); KREFELD, 3; AACHEN, 3; Intruders 3. ITALY. 30th. 215 escorted Fortresses and Liberators dropped 258 tons on four airfields in 1.3. ITALY with good results. 22 enemy aircraft reported destroyed on ground and combat casualties 73, 12, 6, for loss of five bombers and three fighters. In battle area 105 Medium, Light and Fighter Bombers attacked enemy communications and gun positions. ALBANIA. 30th. Liberators dropped 70 tons on Radar Station at FIER, north of VALONA. TREASURY DEPARTMENT 1944 FEB 3 PM 2 13 Regraded Unclassified