Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
28277418
label
Volume 702, February 15 – February 21, 1944
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
28277418
sourceUrl
contentType
document
title
Volume 702, February 15 – February 21, 1944
citationUrl
collections
Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
28277418
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
5bbbab66393bc637
ocrText
Diary
Book 702
February 15-21, 1944
- A -
Book Page
Alien Property Custodian
I.G. Farben - General Aniline & Film Corporation
situation reviewed in Nation and PM - 2/17/44
702 91
a) Crowley's connections reviewed in connection
with resignation
Arabia, Saudi
See War Refugee Board
Argentina
See Latin America
- B -
Blickenstaff, David
See War Refugee Board
- C -
Clark, General Mark W.
See Italy
Correspondence
Mrs. Forbush's mail report - 2/18/44
104
Crowley, Leo T.
See Alien Property Custodian
- E -
Ecuador
See War Refugee Board
Egypt
See War Refugee Board
Eisenhower, General Dwight D.
See Financing, Government: War Savings Bonds
- I -
Farben, 1.0.
See Alion Property Custodian
Financing, Government
War Savings Bonds
Eisenhower, General Dwight D.: Return to Treasury of
gift bond discussed in correspondence - - 2/16/44
50
- G -
General Aniline & Film Corporation
See Alien Property Custodian
Greece
See War Refugee Board
Regraded Unclassified
- I -
Book Page
I. G. Farbenindustrie A. G.: Interessengemeinschaft
(Community of Interest Agreement) Farbenindustrie
(Dye Trust) Aktiengesellschaft
See Alien Property Custodian
Iceland
See War Refugee Board
Italy
Invasion background given in Clark cable - 2/15/44.. 702
3
- L - -
Latin America
Argentina: Break in diplomatic relations with the
Axis discussed in State-Treasury correspondence -
2/16/44
54
Ecuador: See War Refugee Board
Mexico: See War Refugee Board
Leahy, Admiral William D.
See War Refugee Board
Lend-Lease
United Kingdom
Federal Reserve Bank of New York statement showing
dollar disbursements, week ending February 2, 1944 -
2/15/44
16
(See also Book 702. page 198 -
week ending February 21, 1944)
Aircraft despatched, weeks ending February 8 and 15 -
British Air Commission report - 2/21/44
203
- X -
Mann, James H.
See War Refugee Board
McClelland, Roswell
See Refuges Board
Mexico
See War Refugee Board
- N -
Nation, The
See Alien Property Custodian
- P -
PM
See Alien Property Custodian
Poland
See War Refugee Board
Portugal
See War Refugee Board
"Psychiatry in Action"
British Information Services film described - 2/15/44
21
Regraded Unclassified
- R -
Book Page
Refugees
See War Refugee Board
- S -
Saudi Arabia
See War Refugee Board
Sephardic Jews
See War Refugee Board
Spain
See War Refugee Board
Surplus War Property Administration
Establishment of - 2/21/44
702 197
- T -
Transnistria
See War Refugee Board
- W -
War Refugee Board
Mann, James H.: State Department agrees to release -
2/15/44
24
a) Departure from Buenos Aires reported - - 2/24/44:
See Book 703, page 158
Ecuador reply - 2/15/44
27
Spain: Blickenstaff, David: Appointed Special
Representative at Madrid - 2/15/44
29
a) Madrid Embassy sent instructions - 2/18/44
127
(See also Book 703, page 181)
1) Embassy asks for added instructions -
2/28/44: Book 704, pages 152,155,158
2) Blickenstaff not available for full time
job - 3/11/44: Book 709, page 55
Switzerland: McClelland, Roswell: Appointed Special
Representative at Bern - 2/15/44
29
(See also Book 704, page 84 - 2/26/44)
Sephardic Jews: Arrival of 374 reported to Joint
Distribution Committee, New York City - 2/15/44
36
Transnistria: Refugee situation again called to
attention of State Department - 2/15/44
43
Leahy-Pehle conversation reported - 2/15/44
58
Saudi Arabia: Situation outlined in cable from Jidda -
2/16/44
64
Portugal:
Resume of situation after conference of interested
groups - 2/16/44
65
Resume by Joseph Schwarts - 3/1/44: Book 705,
pages 310,312
Egypt: Situation reviewed in cable from American
Legation, Cairo - 2/18/44
117
(See also Book 703, page 173)
Regraded Unclassified
- W - (Continued)
Book Page
War Refugee Board (Continued)
Mexico: Situation reviewed in cable from American
Embassy, Mexico City - 2/18/44
702 122
Iraq: Resume of situation in cable from Bagdad -
2/18/44
124
Progress report by Pehle for HMJr - 2/19/44
141
a) Proposed declaration by FDR approved by HMJr -
2/21/44
206
Iceland: Situation reported in cable from Reykjavik -
2/19/44
155
Greece: Situation reported in cable from American
Consulate, Istanbul - 2/19/44
157
Poland: Situation and proposed action outlined in
Pehle memorandum to Stettinius - 2/21/44
225
1
February 15, 1944
MEMORANDUM FOR THE FILES
Early last week (February seventh) I called
Secretary Hull in the absence of the Secretary
to ask him if he would not push along the decision
with respect to the proposed agreement between
the Secretary of the Treasury and the Minister of
Finance of the Belgian Government in Exile, which
had been the subject of conferences between repre-
sentatives of the Treasury, State, and War Depart-
ments. I told him the War Department was very
anxious to get the matter settled and BO were the
Belgians, and I would appreciate it if something
might be done about it.
Although we had been told that the State
representatives had discussed the matter with
Mr. Hull, he told me he did not know anything
about the subject as he had been tied up during
the past week on emergency matters and had not
had an opportunity to talk to his people about it.
However, he said he would call them immediately,
discuss it with them, and call me back.
I noticed in yesterday's paper that Mr. Hull
had gone to Florida on a vacation. After talking
to Harry White I called Under Secretary Stettinius
yesterday about the matter. He told me he had it
on his desk and expected to have 8 conference on it
in the afternoon.
Mr. Stettinius called me this morning and said
he had been over the matter rather thoroughly with
his people and he said the State Department is unani-
mous in their views that we should treat the Belgians
as an ally and pay for all of our military operations
the same as we do in England. He said that we expect
to enter into B. Lend-Lease arrangement with them
Regraded Unclassified
2
- 2 -
and he did not see how we could do this and at
the same time leave the other expenses to be
adjusted after the war.
I told him I would discuss the matter further
with the Treasury people and call him back some
time during the day.
I discussed the matter with Harry White and
later in the day called Stettinius back to say we
felt in the Treasury that the matter should be set
forth in a joint memorandum prepared by the Treasury
and State Departments and sent to the President.
We should set forth fully our different views and
ask for a decision with respect to Belgium and
point out that whatever decision is made should
likewise apply to other countries in similar
situations.
DWB:NLE
Regraded Unclassified
3
February 15, 1944
Message to: Secretary Morgenthau
From:
Fred Smith
Following is cable from Mark Clark's headquarters highlighting
Invasion of Italy you said you wanted forwarded immediately.
Also would like to relay to you that We The People rating advanced
nearly a point to 9.6 for your broadcast. This is higher than it
has been for several months. No estimate on the number of listeners
thus far. Here is the Cable:
HD
Regraded Unclassified
4
BACK GROUND MATERIAL FOR TREASURY DEPARTMENT BROADCAST
15 February 1944
1. Background To Invasion. It was long before dawn of 8.
September morning in 1943. The picturesque coastline near Arzew,
Algieria quivered from the barking roar of high explosive guns and
shone eerily under slowly discending parachute flares. A ghostly
glare showed soldiers with full equipment hurrying down the ramps
of landing craft standing by on the beach and wading through the
heavy surf. To all intent and purposes, this looked like the real
thing, but for the absence of casualties one knew this was part of
the graduation exercises -- a preparation for the real job ahead.
Nevertheless, from private to general the grimness of the task was
reflected in the set expressions on countless faces. In less than
a week, their many months of tough training would find expression
on hostile shores of the continent of Europe. A tall, almost gaunt
figure stood out in its calmness and penetrating attitude. Lt.
General Mark W. Clark, Commanding General of the 5th Army was re-
viewing his troops for what was to be the final test before the big
battle. Infantry stormed the "enemy" pill boxes and "mine fields"
while the engineers worked at top speed improving landing factilities
80 that the heavy tanks, jeeps and trucks could move in to support
the foot soldiers. This was the prelude to invasion.
2. The huge convoy made & landfall on September 8, 1943. The
sharp, jagged hills in the distance moved imperceptibly closer. This
was a strange land, yet every man jack aboard knew that ahead of
Regraded Unclassified
5
- 2 -
them was Italy. There was no more shop talk about where they were
going. While the convoy was under way, the men had been thoroughly
briefed in where they were going and what their jobs were to be.
They knew that the British 8th Army had landed at Messina and was
pushing its way slowly up the Italian boot. Weapons and equipment
had been taken apart and assembled time and time again every part
was oiled and cleaned . mechanical failure would mean sudden death.
The men were well prepared with their baptism of fire. Their packs
contained sulpha drugs, tablets for purifying water, Benzadrine
tablets to combat fatigue and Atabrine pills to war off malaria.
All this in addition to a plentiful supply of concentrated rations.
Palms were moist, tongues were dry, but they were unafraid as their
ships moved into position off the Italian coast.
3. On the morning of September 8th, the ship's radio suddenly
announced the unconditional surrender of Italy. To most of the men
it was a letdown for they had been execting a fight and secretly
coveting the desire to win a Bronze Star to add to their campaign
ribbons. Thisp most of them felt, was to be another one of those
"practice landings". However, radio informed them that plans remained
the same and they were warned that the Germans on the beaches would
put up a costly and tenacious resistance. As the shadow of night
veiled the sea, an unnatural calm settled over the soldiers as the
sharply silhouetted vessels stretched out in a long line to the
distant horizon. The soldiers were nervous and again went over their
Regraded Unclassified
- 3 -
equipment, talked over instructions, and made ready to board their
landing craft. Optimism ran high although they knew that Salerno
was just a few miles starboard and that extensive mine fields would
prohibit the close approach by the larger ships in the convoy. The
night silence was broken only by furtive whispers, commands and the
lapping of small waves against the metal plates of the ships.
4. The landing was on. The assault ships cleaved the calm
water of the Mediterranean while on board such ypical American
comments were heard: "So, I won't get me a metal, but at least I'll
see some of those Roman ruins I read about in school". He was
answered by, "sightseeing isn't what it is cracked up to be, brother."
While another, more serious soldier, said, "don't forget about the
Jerries. Harry told me that he heard from somebody else who heard
the general tell a colonel that there are about twenty Jerry divisions
over there". One slim soldier, gently caressing his Bazooka re-
marked, "I am going to lug this Bazooka around until I meet up with
& tank". By now, we were coming into the beach. The harsh gratings
of keols on a sandy beach moved along miles of coastline, ramps were
lowered, men stood up in waist-deep water and headed for the land.
At this point, a loud voice in English was heard as if over a public
address system "You'd better surrender. We have you surrounded,"
it blared. At the same time an inferno of fire leapt from the
beach to meet the invaders. Rifles, mortars, artilb ry machine guns
and grenades turned the white beaches into a bloody cauldron.
Regraded Unclassified
7
The men sought cover from the vicious hail of steel by crouching
low behind sand dunes. But the hail of hot steel did not prevent
landing craft from bringing in reinforcements and the first wave
on the beach spread out to encircle and destroy the enemy fortifi-
cations. Veteran German troops held strong, natural defenses but
were pushed back by grim American soldiers, many of whom were under
fire for the first time. When dawn streaked the sky, the Americans
were already pushing inland. One of the primary objectives was to
capture some of the high mountains behind Salerno upon which the
Germans had erected observation posts. Even the Luftwaffe appeared
supporting the attack of & cloud of monstrous German "Tiger" tanks.
Our anti-tank guns, baxookas and even rifles were used against the
tanks. One American sgt. came in from the rear, gained a foothold
and pulled himself upon top of a tank, forced the turret open and
dropped some grenades inside. Another soldier met his death after
beating off tanks by extremely accurate sub-machine gun fire on their
portholes. The action was heavy with no quarter given, but finally
the American boys representing every Main Street in America pushed
the Germans back into the mountains. The foot soldiers were again
supreme, slugging it out with the enemy, but he was grateful for the
curtain of heavy naval fire from the warships off shore and for
the support given him by the engineers and artille rymen who helped
him with his rifle, grenade and basooka to gain & beachead in Europe.
Regraded Unclassified
8
- 5 -
Over ground that had rocked to the tread of warriors from time
immemorial, men from New York, California, Kansas, fought and bled
for their country. General Clark, himself, was seen in some of the
hottest areas giving his men the inspirational aid that only & leader
can contribute. Late that afternoon the Germans began another thrust
at the beach. A young captain calmly worked his artillery battery
and smashed six of the tanks, forcing the rest of them to withdraw.
By September 10th or as it was known in the Army, "D plus 1",
the beachhead was ours. American soldiers were on the continent of
Europe and the victory had a. sweet taste.
5. The Germans strike back. We moved ahead against stubborn
resistance. There were many obstacles in our path. Rivers, drainage
ditches, swiftly flowing streams and channels had to be crossed
under heavy fire. To the south, British units were up against a wall
of German resistance, against an enemy fortified with observation
posts and heavy gun positions. The Infantry slogged on to capture
the heights near Alta Villa and were in & position to threaten any
retreat of German troops fleeing backward fromt he assaults of the
British Eighth Army. The enemy, therefore, threw in a strong counter-
attack on September 13. There were many anxious and trying hours
at the height of the German drive while General Mark Clark re-
grouped his forces. This was the crucial hour of the campaign. The
foot soldier, begrimed and dog-tired, held his position remembering
Regraded Unclassified
9
- 6 -
General Clark's fighting words .. "We have come to stay." The German
attack was blunted and we were on the offensive again.
6. We moved north. The Germans were scattering booby traps
over a wide area, suicide demolition squads remained behind to
destroy bridges, aqueducts and to mine the roads and fields. The
heavy equipment was forced on to the narrow roads which snaked their
way along high mountain trails. We had to scale cliffs that were
no more than goat trails and even mule trains were utilized for supply
and to evacuate the wounded. At time ammunition had to be dropped
by planes. The Infantry moved forward amid a nightmare of exploding
mines as our mountain Engineers worked around the clock reconstructing
or putting in new bridges that had been destroyed by the retreating
enemy. The heavy rains turned the land into a mire and often
washed out new construction. September wore on and the misty-
foggy October days added new problems to the troops but they con-
tinued to move forward. On October 1st, Naples fell to the Fifth
Army, and we had achieved a port, though badly damaged, which would
allow us to bring in more supplies than was possible by land.
7% The enemy was helped immeasureably by the terrain and vicious
weather, in building up strong defensive positions north of the now
famous Volturno River. The second huge task in over one month faced
the Fifth Army. The first was establishing the beachhead in the face
of obstinate enemy resistance and now the second, & bridgehead
across the Volturno River against a battle-wise foe fighting from
Regraded Unclassified
10
- 7 -
well prepared defenses. Mount Vesuvius loomed high to the East,
the hot molten lava spowing from its peak provided an eternal
beacon for the operation to follow. The nights of October 12th and
13th, after a tremendous artillery barra e to soften the enemy
defenses, Fifth Army troops waded the icy waters of the flooded
Volturno River, stood up against the searing fire from German
defenses, but crossed the river. Soldiers waded to the opposite
shore attaching hand lines to trees so that their buddies' crossing
would be made easier. British and American troops, side by side,
waded and used small boats to get across while small-a.ms fire was
whipping the water around them into an angry foam. The Germans
agains were forced to retreat. But the crossing of the river was
only the beginning. Before them were the Appenine Mountains which
were formidable barriers in themselves, but more difficult with the
enemy strongly entrenched in them. The Germans dug deep into
solid rock to establish their gun positions and these were additionally
reinforced with rock and concrete. The Germans held every avenue
of approach, positions they believed were impregnable. Each one
of their positions was an independent unit which meant that every
one of them had to be cleaned out before the Fifth Army could
advance. The Germans even used smashed tanks as concealed pill-
boxes. Booby traps, mine field and barbed wire emplacements were
scattered among the guns reaching from the valleys high up to the
mountai. slopes. Again it was up to the foot soldiers to move up
Regraded Unclassified
11
- 8 -
over muddy snow-covered paths against an icy freezing wind. High
in mountains American soldiers stained the white snow with their blood
and fought in the mists of the clouds. Here, even the glue-footed
mules couldn't move and human pack trains kept supplies moving.
The wounded were evacuated at night to be safe from enemy fire.
Medical Corps men worked all night in relays to bring the casualties
to medical aid stations. But still the troops moved forward beating
the weather and the Germans.
3. Leap Frog Operation. Our march up the peninsula was slow
against such weather, terrain and enemy. Therefore, it was necessary
for amphibious operations to land further up the coast and flank
the German lines. Plans were made carefully for this risky move and
the Village of Anzio about 25 miles south of Rome was chosen as
the objective. On January 22, 1944, the Fifth Army landed, taking
the Germans completely by surprise. Opposition was light and easily
overcome. After the bloody fighting at Salerno these new invasion
troops were astonished by the lack of resistance. Finally the Germas
started to move strong forces into the threatened area, The landing
at Anzio was a magnificent demonstration of smooth teamwork by the
allied troops, Air Forces and Navies. General Mark Clark had taken
the chance because he knew the calibre and determination of his
fighting troops to win through to final victory.
Regraded Unclassified
ACTION VAS HEAVY WITH NO QUARTER GIVEN, BUT FINALLY THE AMERICAN BOYS
12
REPRESENTING EVERY MAIN STREET IN AMERICA PUSHED THE CERMANS BACE INTO
THE MOUNTAINS. THE FOOT SOLDIERS VERE ACAIN SUPREME, ELUCCING IT OUT
WITH THE ENEMY, BUT HE WAS CRATEFUL FOR THE CURTAIN OF HEAVE NAVAL FIRE
FROM THE WARSHIPS OFF SHORE AND FOR THE SUPPOST GIVEN SIM BY THE
ENGINEERS AND ARTILLERYMEN WHO RELPED RIM WITH THE XXX WITH HIS RIFLZ,
GRENADE AND BAZOOK XI BAZODEA TO GAIN A BEACHEAD IN EMBOPE. OVER GROUND
THAT ROCKED TO THE TREAD OF WARRIORS FROM TIME IMMEMORIAL, MEN FROM NEW
Z
YORJIXX NEW YORK, CALIFORNIA, JANSAS, FOUGHT AND BLED FOR THEIR COUNTRY.
GENERAL CLARK, HINSELF, WAS SEEN IN SOME OF THE HOTTEST AREAS GIVING HIS
MEN THE INSPIRATIONAL AID THAT ONLY A LEADER CAN CONTRIBUTE. LATE TRAT
AFTERNOON THE GIRMANS BEGAN ANOTHED THRUST AT THE BEACH. A TOUNG CAPTAS
CALMLY WORKED NIS ARTILLERY BATTERY AND SMASHED SIX OF THE TANKS, FORC-
ING THE REST OF THEN TO WITHDRAW. BY SEPTEMBER 10TH ou AS IT MAS ENOWN
IN THE ARMY, "D PLUS 1", THE BEACHNEAD WAS OURS. AMERICAN SOLDIERS
VIRE ON THE CONTINENT OF EUROPE AND THE VICTORY HAD A. SWEET TASTE.
o
5. THE GERRANS STRIKE BACK. WE MOVED AMEAD ACAINST STUBBORN RESISTANCE
COLLECTOR OF CUSTOMS TAMPA
THERE WERE MANY OBSTACLES IN OUR PATM. RIVERS, DRAINAGE DITCHES, SWITTE
FLOWING STREAMS AND CHANNELS HAD TO BE CROSEDIX CROSSED UNDER HEAVY FINE
TO THE SOUTH, BRITISM UNITS WERE UP AGAINST A WALL OF CERMAN RESISTANCE,
EUR OF CUST WASH SECRETARY MORGENTHAU 5 OFFICE REQUESTS TRAT
AGAINST AN ENEMY FORTIFIED WITH OBSERVATION POSTS AND MEAVY CUN POSI-
COLLECTUR ANGLE DELIVER THE FOLLOWINGHST TO RIM WHEN RE MEETS MIM AT
AND WERE IN - POSITION TO THREATEN ANY CERMAN
TIONS, THE INEANTRY, SLOGGED DN CARTURE IHE
THE THAIN THIS AFTERNOON
BACKWARD FROM THE ASSAULTS OF THE BRITISM EIGHTH ARMY. THE ENEMY, TM
IS THEREFORE, THREW IN A STRONG COUNTER ATTACK ON SEPTEMBER 12-
THERE WERE MANY AMXIQUE AND TRYING HOURS AT THE MEIGHT OF THE GERMAN
MESSAGE to SECRETARY MORGENTHAU
DRIVE WHILE GENERAL MARK CLARK REGROUPED MIS FORCES. THIS WAS THE CRUCE
FROM FRED SMITH
** CRUCIAL HOUR OF THE CAMPAISN. THE FOOT SOLDIER, BEGRIMED AND ONE
MDOG-TIRED, HELD HIS POSITION REMEMBERING GENERAL CLARR,: FIGHTING WORDS
FOLLOWING IS CALBE FROM MARK CLARK $ HEADQUARTENS MIGHLIGHTING INVASION
"VE HAVE COME TO STAY.* THE CERMAN ATTACK WAS BLUNTED AND VE WERE
OF ITALY YOU SAID YOU MANTED FORWANDED IMMEDIATELY. ALSO WOULD LIKE TO
ON THE OFFENSIVE AGAIN.
RELAY TO YOU THAT VI THE PEOPLE RATING ADVANCED NEARLY A POINT TO
6. WE MOVED NORTH. THE CERMANE WERE SCATTERING BOOBY TRAPS OVER A WIDE
V.6 FOR YOUR BROADCAST. THIS IS HIGHER THAN IT HAS DEEN FOR SEVERAL
AREA, SUICIDE DEMOLITION SQUADE REMAINED BENIND TO DESTROY GRIDGES,
MONTHS. NO ESTIMATE DN THE NUMBER OF LISTENERS THUS PAN. HERE IS THE
AQUEDUCTS AND TO MINE THE ROADS AND FIELDS. THE HEAVY EQUIPMENT WAS
CARLE--
FORCED ON TO THE MAEROW ROADS WHICH SNAKED THEIR WA 11 WAY ALONG SIGH
MOUNTAIN TRAILS. WE HAD TO SCALE CLIFFS THAT WERE NO MORE THAN GOAT
BACK GROUND MATERIAL FOR TREASURY DEPARTMENT BROADCAST 15 FEBRUARY 10
TRAILS AND EVEN MULE TRAIN SXX THAINS MERE UTILIZED FOR SUPPLY AND TO
EVACUATE THE WOUNDED. AT TIME AMMUNITION HAP TO DE DROPPED BY PLANES.
1. GACKGROUND TO INVASION. IT VAS LONG BEFORE DAWN OF A SEPTEMBER
THE INFANTRY MOVED FORWARD AMID A NIGHTMARE OF EXPLODING MINES AS DOB
MORNING IN 1943. THE PICTURESQUE COASTLINE HEAR ARZEW, ALGIERIA QUI-
NOUNTAIN ENGINEERS WORKED AROUND THE CLOCK RECONSTRUCTING G9 PUTTING IN
VERED FROM THE BARKING KOAR or HIGH EXPLOSIVE GUNS AND SHONE EERILY UNDE
NEW BRIDGES THAT HAD BEEN DESTROYED BY THE RETREATING ENEMY. THE NEXVY
DLOWLY DISCENDING PARACHUTE FLARES. A GNOSTLY CLARE SHOWED SOLDIERS
RAINS TURNED THE LAND INTO A MIRE AND OFTEN WASHED OUT NEW CONSTRUCTION.
VITH FULL EQUIPMENT NURRY ING DOWN THE RAMPE OF LANDING CRAFT STANDING
SEPTEMBER WORE ON AND THE MISTY-FOGGY OCTOBES DAYS ADDED NEW PROBLEMS
AT ON THE BEACH AND MADING THROUGH THE HEAVY SURF. TO ALL INTENT AND
TO THE TROOPS BUT THEY CONTINUED To MOVE FORWARD. ON OCTOBER 1ST, NIX
PURPOSES, THIS LOOKED LIKE THE REAL THING, BUT FOR THE ABSENCE OF
NAPLES FELL TO THE FIFTH ARMY, AND WE HAD ACHIEVED & PORT THOUGH BADLY
CASUALTIES ONE KNEW THIS WAS PART OF THE GRADUATION EXERCISES -- A PEEPS
DAMAGED, WHICH WOULD ALLOW us TO BRING IN MOSE SUPPLIES THAN WAS POSSIBE
A PREPARATION TOR THE REAL JOB AMEAD. NEVERTHELESS, FROM PRIVATE TO
BY LAND.
CENERAL THE CRIMNESS OF THE TASJ WAS ПЕРХЕХХ TASK VAS REFLECTED IN THE
7. THE ENMY WAS HELPED IMMEASURENBLY BY THE TERRAIN AND VACIOUS WEATHER
SET EXPRESSIONS ON COUNTLESS FACES. IN LESS THAN A WEEJ, THEIR MANY
IN BUILDING UP STRONG DEFENSIVE POSITIONS NORTH OF THE NOW FAMOUS VOLXX
MONTHS OF TOUCH TRAINING WOULD FIND EXPRESSION ON MOSTILE SMORES OF THE
VOLTURNO RIVER. THE SECOND MUGH TASK IN OVER ONE MONTH FACED THE FIFTH
CONTINENT OF EUROPE. A TALL, ALMOST CAUNT FIGURE STOOD OUT IN ITS
ARMY. THE FIRST WAS ESTABLISHING THE BEACHNEAD IN THE FACE OF OBSTINTE
CALMNESS AND PENETRATING ATTITUDE. LT. GENERAL MARK W CLARK, COMMAND-
ENDIT RESISTANCE AND NOW THE SECOND, A BRIDSEHEAD ACROSE THE VOLTURNO
INC CENERAL OF THE FIFTH ARMY WAS REVIEWING HIS TROOPS FOR WHAT WAS TO
RIVER AGAINST A BATTLE-WISE FOE FIGHTING FROM WELL PREPARED DEFENSES.
BE THE FINAL TEST BEFORE THE BIC BATTLE. INFANTRY STORMED
MOUNT VESUVIUS LOOMED HIGH TO THE EAST, THE HUT MOLTEN LAVA SPEWING
THE ENDIY PILL BOXES AND "HINE FIELDS" WHILE THE ENEXX ENGINEERS WORKED
FROM ITS PEAK PROVIDED AN ETERNAL BEACON FOR THE OPERATION TO FOLLOW.
AT TOP SPEED IMPROVING LANDING FACILITIES so THAT THE HEAVY TANKS,
THE NIGHTS or OCTOBER L2TH AND 13TH, AFTER A TREMENDOUS ARTILLERY DAR-
JEEPS AND TRUCKS COULD MOVE IN TO SUPORIX SUPPORT THE FOOT SOLDIERS.
RAGE TO SOFTEN TH II THE ENEMY DEFENSES, FIFTH ARMY TROOPS WADED THE
THIS WAS THE PRELUDE TO INVASION.
ICY WATERS OF THE FLOODED VOLTURNO RIVER, STOOD UF AGAINST THE SEARING
2+ THE HUGH CONVOY NADE A LANDFALL DN SEPTEMBER 8, 19a3. THE SHARP,
FIRE FROM GERMAN DEFENSES, BUT CROSSED THE RIVER. SOLDIERS WADED TO THE
JACGED HILLS IN THE DISTANCE MOVE IMPERCEPTIBLY CLOSER. THIS WAS A
OPPOSITE SHORE ATTACKING HXX ATTACHING HAND LINES TO TRESXX TREES 20 THE
STRANGE LAND, YET EVERY MAN JACK ABOARD KNEW THAT AREAD OF THEM WAS
THEIR BUDDIES CROSSING WOULD BE MADE EASIER. BITISH AND AMERICAN TROOPS
ITALY. THERE WAS NO MORE SHOP TALK ABOUT WHERE THEY VERE COING.
SIDE BY SIDE, WADED AND USED SMALL BOATS TO GET ACROSS WHILE SMALL-
WHILE THE CONVOY WAS UNDER WAY, THE NEW HAD BENXX BEEN THOROUGHLY BRIEFE
ARMS FIRE WAS WHIPPING THE WATER ARGUND THEM INTO AN ANGRT FOAM. TXL
IN WHERE THEY WERE COING AND WHAT THEIR JOBS VERE TO BE. THEY KNEW THAT
GERMANS AGAIN WERE FORCED TO RETREAT. BUT THE CRASSING OF THE RIVER was
THE BRITISH EIGHTS ARMY HAD LANDED AT MESSINA AND WAS PUSHING ITS WAY
ONLY THE BEGINNING. BEFORE THEM WERE THE APPENINE MOUNTAINS WHICH VOI
SLOWLY UP THE ITALIAN BOOT. WEAFONS AND EQUIPMENT HAD DEEN TAKEN APART
FORMIDABLE BARRIERS IN THEMSELVES, BUT MORE DIFFICULT WITH THE ENEMY
AND ASSEMBLED TIME AND TIME AGAIN -- EVER XX EVERY PART WAS OILED AND
STRONGLY ENTRECXX ENTRENCHED IN THEM. THE GERMANS DUG DEEP INTO SOLID
CLEANED -- MECHANICAL FAILURE VOULD MEAN SUDDEN DEATH. DIE MEN WERE
BOCK TO ESTABLISM THEIR CUN POSITIONS AND THESE WERE ADDITIONALY REIN-
WELLL PREPARED WITH THEIR BAPTISH OF FIRE. THEIR PACKS CONTAINED
FORCED WITH ROCK AND CONCRETE. THE CERMANS HELD EVERY AVENREE AVENUE
SULPHA DRUGS, TABLETS FOR PUNIFYING WATER, BENZADRINE TABLETS TO COMDAT
or APPROACH, POSITIONS THEY DELIEVED VERE IMPRECNABLE. EACH ONE OF THIX
FATICUE AND ATABNINE FILLS TO WAR OFF MALARIA. ALL THIS IN ADDITION TO
THEIR POSITIONS WAS AN INDEPENDENT UNIT WHICH HEAST TEAT EVERY ONE OF
A PLENTIFUL SUPPLY OF CONCENTRATED RATIONS. PALMS WERE MOIST,
THEM HAD TO BE CLEANED OUT BEFORE THE FIFTH ARMY COULD ADVANCE. THE
TONGUES WERE DAY, BUT THEY WERE UNAFRAID AS THEIR SHIPS MOVED INTO
CERMANS EVEN USED SMASHED TANKS AS CONCEALED PILLBOXES. BOODY TRAPS,
POSITION OFF THE ITALIAN COAST.
NINE FIELD AND BARDED WIRE EMPLACEMENTS WERE SCATTERED ABONG THE GUME
J. ON THE MORNING OF SEPTEMBER STH, THE SHIP a RADIO SUDDENLY
REACHING FROM THE VALLEYS RICH UP TO THE MOUNTAIN SLOPES. AGAIN If WAS
ANNOUNCED THE UNCONDITIONAL SURRENDER OF ITALY. TO MOST OF THE MEN 17
UP TO THE FOOT SOLDIERS TO MOVE UP OVER MUDDY SNOW-
WAS a LETDOWN FOR THEY HAD BEEN EXPECTING A FIGHT AND SECRETLY COVDXX
4983438 PATXXXXXXXXXX MOVE UP OVER MUDDY SNOW-COVERED PATHS ACAINST
COVETING THE DESIRE TO WIN A BRONZE STAR TO ADD TO THEIR CAMPAIGN RIA
AN ICY FREEZING WIND. HIGH IN MOUNTAINS AMERICAN SOLDIERS STAINED THE
-BONS. THIS, MOST OF THEM FELT, WAS TO BE ANOTHER ONE OF THOSE
WRITE SNOW WITH THEIR BLOOD AND FOUGHT IN THE MISTS OF THE CLOUDS.
"PRACTICE LANDINGS.* HOWEVER, RADIO INFORMED THEM THAT FLAMS REMAINED
HERE, EVEN THE CLUE-FOOTED MULES COULDNT MOVE AND HUMAN PACK TRAINS REPT
THE SAME AND THEY WERE WARNED THAT THE GERMANS ON THE BEACHES WOULD PUT
SUPPLIES MOVING. THE WOUNDED VERE EVACUATED AT NIGHT TO BE SAFE FROM
UP a COSTLY AND TENACIOUS RESISTANCE. AS THE SRADOR OF NIGHT VEILED
ENEMY FIRE- MEDICAL COMPS MEN WORKED ALL MIGHT IN RELAYS TO BRING THE
THE SEA, AN UNRATURAL CALM SETTLED OVER THE SOLDIERS AS THE SHARPLY
CASUALTIES TO MEDICAL AID STATIONS. OUT STILL THE TROOPS MOVED FORWARD
SILHOUETTED VESSELS STRETCHED OUT IN A LONG LINE TO THE DISTANT HORIZON.
BEATING THE WEATHER AND THE GERMANS.
THE SOLDIERS VERE NERVOUS AND AGAIN WENT OVER THEIR EQUIPMENT, TALKED
5. LEAP FROC OPERATION. BOR MARCH UP THE PENINSULA VAS SLOW AGAINST
OVER INSTRUCTIONS, AND MADE READY TO BOARD THEIR LANDING CRAFT.
SCUNXX SUCH WEATHER. TERRAIN AND ENTY. THEREFORE, IT WAS NECESSARY FOR
OPTIMISM HAN HIGH ALTHOUGH THEY KNEW THAT SALERNO WAS JUST A TEN MILES
AMPRIBIOUS OPERATIONS TO LAND FURTHER UP THE COAST AND FLANK THE SERMAN
STARBOARD AND THAT EXTENSIVE NINE FIELDS WOULD PROHISTXX PROHIDIT THE
LINES PLANS WERE MADE CAREFULLY FOR THIS RISKY MOVE AND THE VILLAGE
CLOSE APPROACH BY TEXX THE LARGER SHIPS IN THE CONVOY. THE NIGHT SILENE
OF AZIO ABOUT 25 MILES SOUTH OF ROME WAS CROSEN AS THE OBJECTIVE. ON
WAS BROKEN ONLY BY FURTIVE WHISPERS, COMMANDS AND THE LAPPING OF SMALL
JANUARY 22, 1344, THE FIFTH AIMY LANDED, TAKING THE GERMANS COMPLETELY
WAVES AGAUIXX AGAINST THE METAL PLATES OF THE SHIPS.
BY SUMPRISE. OPPOSITION VAS LIGHT AND EASILY OVERCOME. AFTER THE BLOOD
4. THE LANDING WAS ON. THE ASSAULT SHIPS CLEAVED THE CLAM WATER OF
FIGHTING AT SALERNO THESE NEW INVASION TROOPS WERE ASTONISHED BY THE LAS
THE MEDITERRANEAN WHILE ON BOARD SUCH TYPICAL AMERICAN COMMENTS WERE
OF RESISTANCE. FINALLY THE GERMANS STARTED TO MOVE STRONG FORCES INTO
HEARD.. "50, I WONT GET RE A METAL, BUT AT LEAST : I.L. SEE SONE OF THOS
THE THREATENED AREA. THE LANDING AT ANZIO VAS A MAGNIFICENT DEMONSTRA-
SOMAN AUINS I READ ABOUT 18 SCHOOL.* WE WAS ANSWERED 9Y, "SIGHTSTEING
TION OF SMOOTH TEAMWORK UT THE ALLIED TROOPS, AIR FORCES AND NAVIES.
12NT WHAT IT IS CHACKED UP TO BE, BROTHER." WHILE ANOTHER, MORE SERIOR
CENERAL MARK CLASK HAD TAKEN THE CHANCE BECAUSE BE KNEW THE CALIBRE MID
SOLDIER, SAID, "DONT FORGET ABOUT THE JERRIES. HARRY TOLD ME TRAT HE
DETERMINATION OF NIS FIGHTING TROOPS TO MIN THROUGH TO FIMAL VICTORY.
HEARD FROM SOMEBODY ELSE wao HEARD THE GENERAL TELL A COLONEL THAT
THERE ARE ABOUT TWENTY JERRY DIVISIONS OVER THERE.* ONE SLIN SOLDIER,
THE OF MES
CENTLY CARESSING HIS BAZOOKA REMARKED, "1 AM COING TO LUC THIS BAZOOK
ABOUND UNTIL I MEET UP WITH A TANK.* BY NOW, WE WERE COMING INTO THE
END OR CA
BEACH. THE MARSH GRATINGS OF KEELS ON A EARDY BEACH MOVED ALONG MILES
OF COASTLINE, BAMPS VERE LOWERED, MEN STOOD UP IN WAIST-DEEP WATER AND
COLLECTOR WILL DELIVER MESSAGE TO MR
MEADED FOR THE LAND. AT THIS POINT, A LOUD VOICE 18 ENGLISH WAS
MORGANTHAU
HEARD AS IF OVER A. PUBLIC ABDRESS SYSTEM - *TOU,D BETTER SUBRENDER.
FOR YOUR INFORMATION THE THAIN 13 2 HOMSKANOURS LATE. THEY WILL
WE HAVE YOU SURROUNDED," IT BLARED. AT THE SAME TIME AN INFERNO OF
LEAVE TAMPA FOR BOCA GRANDE BETWEEN - AND - 30 P M IN CASE YOU
FIRE LEAPT FROM THE BEACH TO MEET THE INVADERS. RIFLES, MORTARS, A
HAVE ANT FURTHER MESSAGE TO STND REFORE THAT THEMEXX TIME.
IX ARTILLERY MACHINE CUNS AND GRENADES TURNED THE WHITE DEACHES INTO
END DE CA
A BLOODY CAULDRON. THE MEN SOUGHT COVER FROM THE VICIOUS HAIL OF
STEEL BY CROUCHING LOV BEHIND SAND DUNES. BUT THE MAIL or NOT STEEL
DID NOT PREVENT LANDING CRAFT FROM DRINGING IN REINFORCEMENTS AND THE
FIRST WAVE on THESSA THE BEACH SPREAD OUT TO ENCIACLE AND DESTROY THE
WILL GIVE IMFO TO PINE MORGENTRAUS SECRETARY THANK 0 END NMW
ENEMY FORTIFICATIONS. VETERAN GERMAN TROOPS HELD STRONG, NATURAL DEF
END AM
ENCES WERE PUSHED BACK BY CRIM AMERICAN SULDIERS, MANY OF WHOM BERE UNDE
FIRE FOS THE FIRST TIME. WHEN DAWN STREAKED THE SEY, THE AMERICANS HERE
ALREADT PUSHING INLAND. ONE OF THE PRIMARY OBJECTIVES WAS To CAPTURE
SOME OF THE nice MOUNTAINS BEHIND SALERNO UPON WHICH THE GERMANS HAD
ERECTED OBSERVATION POSTS. EVEN THE LUFTWAFFE APPEARED SUPPORTING THE
ATTACH XX ATTACK OF A CLOUD OF MONSTROUS GERMAN "TIGIN" TANKS, are
ANTI-TAMK CUMS, BAZOOKAS AND EVEN RIFLES VERE USED AGAINST THE TAMKS.
ONE AMERICAN SET. CARE IN FROM THE REAR, GAINED A FOOTBOLD AND PULLED
HIMSELF UPON TOP or A TAME, FORCED THE TURRET OPEN AND DROPPED STATE
Pt
GRENADES INSIDE. ANOTHER SULDIER NET HIS DEATH AFTER SEATING TANKS
Regraded Unclassified
BY CITYCRELY ACCURATE SUB-MACHINE EUN FIRE ON THEIR PORTHOLES. BEF
DIE
13
VICTORY
TREASURY DEPARTMENT
BUY
UNITED
STATES
WAR
BONDS
PROCUREMENT DIVISION
WASHINGTON 25
FICE OF THE DIRECTOR
SECRET
February 15, 1944
MEMORANDUM TO THE SECRETARY:
There is submitted herewith the weekly
report of Lend-Lease purchases.
We are attempting to secure fifteen
second-hand oil tanks (55,000 barrel capacity)
for delivery to Burma in July, inasmuch as new
tanks cannot be secured to meet this delivery.
Director of Procurement
yr Clifton E. Mack
Attachment
Regraded Unclassified
14
LEND-LEASE
SECRET
TREASURY DEPARTMENT, PROCUREMENT DIVISION
STATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND
DELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS
AS OF FEBRUARY 9, 1944
(In Millions of Dollars)
Administrative
Miscellaneous &
Total
U.K.
Russia
China
Expenses
Undistributed
Allocations
$4682.3
$2287.9
$1877.3
$113.8
$11.0
$392.3
(4667.4)
(2287.9)
(1862.4)
(113.8)
(11.0)
(392.3)
Purchase Authoriza-
$3500.6
$1824.1
$1382.3
$44.5
-
$249.7
tions (Requisitions)
(3477.4)
(1817.0)
(1371.8)
(44.4)
-
(244.2)
Requisitions Cleared
$3418.6
$1774.8
$1358.4)
$43.9
-
$241.5
for Purchase
(3388.8)
(1764.7)
(1346.4)
(44.1)
-
(233.6)
Obligations
$3284.0
$1739.7
$1327.2
$43.8
$9.9
$163.4
(Purchases)
(3257.4)
(1724.5)
(1318.5)
(43.8)
(9.9)
(160.7)
Deliveries to Foreign
$1690.3
$1142.5
$496.6
$21.3
-
$29.9
Governments at U. S.
(1675.6)
(1136.0)
(491.3)
(21.1)
-
(27.2)
Ports*
#Deliveries to foreign governments at U. S. Ports do not include the
tonnage that is either in storage, "in-transit" storage, or in the
port area for which actual receipts have not been received from the
foreign governments.
Note: Figures in parentheses are those shown on report of February 2, 1944.
15
EXPLANATION OF DIFFERENCE
SECRET
The decrease in Requisitions Cleared for
China is a result of adjustment of requisitions
to actual contracts.
Regraded Unclassified
16
TREASURY DEPARTMENT
OFFICE OF THE SECRETARY
February 15, 1944
CONFIDENTIAL
Received this date from the Federal Reserve
Bank of New York, for the confidential informa-
tion of the Secretary of the Treasury, compilation
for the week ended February 2, 1944, showing dollar
disbursements out of the British Empire and French
accounts at the Federal Reserve Bank of New York
and the means by which these expenditures were
financed.
Emb
Regraded Unclassified
17
FEDERAL RESERVE BANK
OF NEW YORK
February 14, 1944.
CONFIDENTIAL
Dear Mr. Secretary:
Attention: Mr. H. D. White
I am enclosing our compilation for the week ended
February 2, 1944, showing dollar disbursements out of the
British Empire and French accounts at this bank and the means
by which these expenditures were financed.
Faithfully yours,
/s/ L. W. Knoke
L.W. Knoke,
Vice President.
The Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington 25, D.C.
COPY
Regraded Unclassified
ANALYSIS 07 BRITISH AND FREECH ACCOUNTS
(In l'illions of Dollars)
Strictly
Jeek Ended Fabruary 2,1944
Confidential
BANK OF ENGLAND (BRITISH government)
BANK OF FRANCE
PERIOD
DEBITS
CREDITS
Gov't
Transfers to
Proceeds of
Net Incr. (-)
Transfers
Net, Incr. (+)
Expendi-
Official
Sales of
Other
or Decr. (-)
Total
Total
or Decr. (-)
Total
tures
Canadian
Other
Total
Becurities
Official
(Official)
Australian
Credits
in S Funds
Debits
Credits
in 0 Funds
Debita
(a)
Account
Debits
Credits
Gold
(b)
Account
(c)
(d)
(e)
(e)
(d)
First year of war (g)
1,793.2
605,6
20,9
1,166,7
1,828,2
1,356,1
52,0
3,9
416.2
+ 35.0
866.3(f)
far period through
1,095.3(f)
+ 299.0
December, 1940
2,782.3
1,425.6
20,9
1,335.8
2,793.1
2,109,5
108,0
14.5
561,1
+ 10,8
878,3
1,098.4
+ 220.1
Second year of war(h)
2,203.0
1,792,2
3.4
407.4
2,189.8
1,193.7
274.0
16.7
705.4
- 13,2
38.9
8.8
- 30.1
Third year of was (1)
1,235.6
904,8
7.7
223.1
1,361.5
21,8
5.5
57.4
1,276.8
+ 125,9
18,5
4.4
- 14,1
Fourth year of war(1)
764.0
312.7
170.4
280.9
1,072.3
-
0,5
155.1
916.7
+ 308.3
10.3
1,0
- 9.3
1943
September
49.4
16,8
10,6
22.0
86,2
-
-
15.0
71,2
+ 36.8
-
-
-
October
38,2
16,0
-
22,2
115,4
-
-
40.5
74.9
+ 77.2
#
-
-
November
65,9
42.4
5.9
17.6
89.0
-
-
3.5
85.5
+ 23,1
.
-
-
December
98,1
16,3
-
81,8
134.5
-
-
36.5
98.0
+ 36.4
-
-
-
1944
January
February
March
April
May
the
July
August
Week Ended
January 12, 1944
7.1
4.1
-
3.0
30.0
-
-
-
January 19, 1944
30.0
10.1
+ 22.9
-
-
6,2
0.3
2.9
66.3
-
-
-
66.3
+ 56.2
-
-
-
January 26, 1944
5.1
2.5
-
2.6
6.5
-
-
-
6.5
+ 1.4
-
-
February 2, 1944
-
17,0
2.8
9.6
4.6
15.7 (g)
-
-
6.0
9.7(g)
= 1.3
-
-
-
Average Weekly Expenditures Since Outbreak of Tax
See attached sheet for footnotes.
France (through June 19, 1940) $19.6 million
Registed (through June 19, 1940) $27.6 million
(through June 20, 1940 to March 12, 1941) 054,9 million
March 12. $20.2 million
Regraded Unclassifie
(a) Includes payments for account of British Ministry of Supply Mission, British Supply Board, Ministry of Supply Timber
Control, and Ministry of Shipping.
(b) Estimated figures based on transfers from the New York Agency of the Bank of Montreal, which apparently represent the
proceeds of official British sales of American securities, including those effected through direct negotiation. In addition
to the official selling, substantial liquidation of securities for private British account occurred, particularly during the
early months of the war, although the receipt of the proceeds at this Bank cannot be identified with any accuracy. According
to data supplied by the British Treasury and released by Secretary Morgenthau, total official and private British liquidation
of our securities through December, 1940 amounted to $334 million.
(e) Includes about $85 million received during October, 1939 from the accounts of British authorised banks with New York banks,
presumably reflecting the requisitioning of private dollar balances. Other large transfers from such accounts since October,
1939 apparently represent current acquisitions of proceeds of exports from the sterling area and other accruing dollar
receipts. See (k) below.
(d) Reflecto net change in all dollar holdings payable on demand or maturing in one year.
(e) For breakdown by types of debite and credits see tabulations prior to March 10, 1943.
(5) Adjusted to eliminate the effect of $20 million paid out on June 26, 1940 and returned the following day,
(a) For monthly breaklown see tabulations prior to April 23, 1941.
(h) For monthly breakdom see tabulations prior to October 8, 1941.
for monthly breakdown sae tabulations prior to October 14, 1942.
(3) For monthly breakdown see tabulations prior to September 29, 1943.
(k) Includes $ 4.1 million apparently representing current and accumulated dollar proceeds of sterling area services and
anrehandise exports; # 1.5 million in connection with the expense of our armed forces abroad, and $1.0 million transferred
from account of Reserve Bank of New Zealand at this bank.
Regraded Unclassified
Regraded Unclassified
ANALYSIS OF CANADIAN AND AUSTRALIAN ACCOUNTS
(In Hillions of Dollars)
Week Roded Fahruncy 2. 1944
BANK
OF
CANADA (and Canadian Government)
COMMUNIFALTH BALK OF AUSTRALIA (and -
DEBITS
CREDITS
DEBITS
CREDITS
Transfers
Transfers
Transfers from Official
to
Proceeds
Net Incr.
to
Proceeds
Net Incr,
British A/C
Official
of
(+) or
Official
of
(+) -
PERIOD
Total
British
Others
Total
Gold
For Own
For French
Other
Decr, (-)
Total
British
Other
Total
Gold
Other
Dear. (-)
Debits
A/C
Debits
Credits
Sales
A/C
A/C
Credits
in $Rinds
Debita
A/C
Debits
Credits
Sales
Credits
State (e)
First year. of BL (a)
323.0
16.6
306.4
504.7
412.7
20,9
38.7
32.4
181,7
31,2
3,9
27.3
36,1
30.0
6.1
4. 48
War period through
December, 1940
477.2
16,6
460.6
707.4
534.8
20.9
110.7
41.0
+ 230.2
57.9
14.5
43.4
62.4
50.1
12.3
. 4.5
Second year of war(b)
460.4
-
460.4
462,0
246,2
3.4
123,9
88.5
+ 1.6
72,2
16,7
55.5
81,2
62,9
18.3
+ 9.0
Third year of was (c)
525.8
0.3
525.5
566.3
198.6
7.7
-
360.0
+ 40.5
107.2
57.4
49.8
112,2
17.2
95,0
- 5.0
Fourth year of war(d)
723.6
-
723.6
958,8
47.1
170,4
-
741.3
+ 235.2
197.0
155.1
41.9
200.4
.
200,4
+ 34
1943
September
47.2
-
47.2
70,1
-
10.6
-
59.5
+ 22,9
16,8
15.0
1.8
20.0
-
20.0
. 3,2
October
32.1
-
32.1
71.)
-
-
-
763
+ 39.2
42.8
40.5
2,3
26.5
-
26.5
- INJ
November
15.4
0,1
15,3
95,1
-
5.9
-
89.2
- 79.7
6,6
3.5
3,1
18,2
-
18.2
-116
December
166.8
0.3
146.5
55.1
"
-
-
55.1
- 91.7
39.7
36.5
3,2
27.0
-
27.0
-12.7
1944
January
February
March
April
iro
he
July
August
Wook Ended
January 12, 1944
3.1
-
3.1
21,0
-
-
-
21.0
+ 17.9
2.5
-
2.5
0.9
-
0.9
- L6
January 19, 1944
6.2
-
6.7
16.1
-
0.3
-
15.8
+9.4
0.3
-
0.3
0,3
-
0.3
(b)
January 26. 1944
6.0
-
6.0
12.7
-
-
-
12.7
+6.7
0.1
-
0.1
8.8
-
8.8
+ 809 +
Fabruary 2. 1944
13.6(f)
-
13.6
19.7(4)
-
9.6
-
10.1(g
+5.9
6.3
6.0
0.3
15,9(1)
-
15.9(1)
+ 9.6
Average Weekly expenditures for
(a) For monthly breakdown see tabulations prior to April 23, 1941.
First year of war
6.2 million,
(b) For monthly breakdown see tabulations prior to October 8, 1941.
Second year of war
8.9 million,
(c) For monthly breakdown see tabulations prior to October 14, 1942.
Third year of sar
10,1 million.
(d) For monthly breakdown see tabulations prior to September 29, 1943.
Fourth year of war
13.9 million,
(e) Reflects changes in all dollar holdings payable on demand or maturing in one year.
Fifth year of war (through February 2, 1944)
12.4 million.
(f) Does not reflect transactions in short term U. S, securities,
(g) Includes of 2.6
million deposited by War Supplies, Ltd.
and $ 7.3 million received from New York account of Canadian Chartered Bank.
(h) Less than $50,000,
(1) Includes $ 15.0 million in connection with the expenses of our armed forces abroads
21
BRITISH INFORMATION SERVICES
1336 NEW YORK AVENUE, I. W.
WASHINGTON, D. C.
February 15, 1944
Mr. John W. Paley
Acting Executive Director
President's War Refugee Board
Room 288
Treasury Department
Washington, D. c.
Dear Mr. Paley:
This letter will confirm our telephone
conversation at which time I extended our invitation
to such members of your organization as might be
interested in going next Friday evening at 8.30 p.m.
to the Department of Agriculture auditorium, South
Building, 14th & Independence to hear Dr. Walter
Maclay and see the film "Psychiatry in Action".
Dr. Walter Maclay who is largely
responsible for the making of the film came to
this country at the invitation of the American
Psychiatric Association. I enclose a description
of the film.
It would be most helpful to learn
after the show what those members of your staff
who may be able to attend think of the film. It
has been very highly praised by the Office of
Vecational Rehabilitation and by the Veterans
Administration Rehabilitation Division Director.
Sincerely yours,
NOG:ms
Nevile Gardiner
Enel
Film Officer
P.S. Any member of your staff my bring one other person
with them.
Regraded Unclassified
22
BRITISH INFORMATION SERVICES
AT AGENCY OF THE BRITISH GOVERNMENT
January, 1944
PSYCHLATRY IN ACTION
This film breaks entirely nev ground in the medical field,
and shows a particularly interesting aspect of British war-tine
organisation.
The British Ministry of Health has found that the best way in
which to tackle many of the problems which arise in war-time
medicine is to set up special centres where teams of experienced
workers are concentrated to deal with particular injuries or
diseases. Among these special centres are seven devoted to the cure
of Neureses. This film was shot at a neurosis centre, which was one
of the first to be set up.
The film is unique from two points of view. First, it gives
a picture of an entirely new type of hospital and second, this is
the first time that an attempt has been made to show in the film
medium the whole working and organisation of say kind of hospital.
The fils starts by introducing Britain at vaz and states
briefly the reasons for the setting up of the special centres under
the Emergency Medical Service of the Ministry of Health.
Then after a view of the various buildings and departments of
the hospital, which is situated in the grounds of a large school
from which the pupile have been evacuated, the Medical Superinten-
dent gives an introduction to the work that is being done there.
Regraded Unclassified
23
Regraded Unclassified
- a -
We pass on to the hospital itself. To the Admission House
where all cases spend their first twenty-four hours. Then ve
follow the patients into the units where they spend the rest of
their stay in hospital. Here we are introduced to some of the
doctors in charge of the units, and see them at work planning
the investigation and treatment of the patients under their care.
There are sequences devoted to some of the methods of
paychological testing which may be used, to the special treatments
which my be required, and to the group talks and lectures. :
We pass next to the physical rehabilitation of the patients,
and to the occupational therapy which plays a large part in
their cure. Here we see how the nursing staff and the instructors
in the various classes assist the doctors in treatment. Next we
see some of the ways in which the normal interests of the patients
are revived by means of lectures, discussions, competitive games,
and A.R.P.
Than we ... how, when the day is over, the patients relax in
am, of their own choice, and we get a view of a pepular feature,
the weekly deady, which the patients themselves erganise.
Finally, the film takes us back to the Medical Superintendant,
who explains that the care of a case cannot end at the hospital;
in must cases the patients cannot just go back to the -
conditions from which they came without danger of a relayse.
The disposal of cases is therefore very important and we see how
the War Office and the Maistry of Labor co-operate with the
Hospital in the after care of Service and Civilian cases,
COPY
24
DEPARTMENT OF STATE
Washington
February 15, 1944
My dear Mr. Pehle:
I have received your letter of February 10 con-
cerning the desire of the War Refugee Board to obtain
the services of Mr. James H. Mann, a Foreign Service
Auxiliary officer at Buenos Aires. A telegram has been
sent to Buenos Aires to inform the Embassy of the De-
partment's decision to release Mr. Mann to accept an
offer from the War Refugee Board, if he wishes to do
SO. The Embassy has been asked to reply by telegram.
If Mr. Mann's reply is in the affirmative, he will be
ordered to Washington for consultation, in order to
discuss the matter with you; and as soon as your ar-
rangements with him have been completed, I shall be
glad to have him released by the Department.
Sincerely yours,
(signed) E. R. Stettinius, Jr.
Acting Secretary
Mr. J. W. Pehle,
Acting Executive Director,
War Refugee Board,
Washington 25, D. G
Regraded Unclassified
25
American Embassy
Ottawa
February 15, 1944.
Memorandum of Conversation
Subject:
War Refugees.
Participants:
Mr. R. A. Robertson, Department
of External Affairs;
Mr. Horner.
Copies to:
I called upon Mr. Robertson this morning and deliv-
ered the Embassy's Note No. 96 of February 11, 1944,
concerning the establishment of a War Refugee Board.
Mr. Robertson took over the handling of refugee only
about 10 days ago.
Mr. Robertson said that in 1940 approximately 4,000
refugees were admitted to Canada from the United King-
dom, many of these being classified as dangerous. About
1,000 of these have since left Canada and about 2,000
are interned here, leaving only approximately 900 who
are at Liberty in Canada. Only a trickle of refugees
reached this country in 1941 and 1942. Last October
Canada sent an Immigration Agent to Lisbon with
authority. to admit an initial group of 200 families
(this figure is not for publication). The Agent reports
that there seemed to be but 600 or so refugees in the
Iberian Peninsula who desire to leave and he thinks it
doubtful whether Canada will be able to find as many
as
Regraded Unclassified
26
- 2 -
as 200 families. External Affairs recently asked its
representative in Algiers to ascertain the refugee sit-
uation there, but has not yet had & report. However,
it is Mr. Robertson's impression that most of the refu-
gees in North Africa have been absorbed into the British
Pioneer Corps, and that the refugee problem is not ser-
ious.
Mr. Robertson mentioned that the Canadian Govern-
ment, on its own initiative, recently asked its High
Commissioner in Ireland to obtain the views of the
Irish Government with regard to refugees. Ireland, appar-
ently, is the only neutral country which has made no
effort to assist in taking refugees. I asked Mr. Robert-
son whether, in view of the reported shortage of food in
Ireland, it might not be necessary, in the event Ireland
agreed to take some refugees, that foodstuffs be shipped
there from North America. He agreed that it probably
would be necessary, but said that the Canadian High Com-
missioner in Dublin had not been instructed to make any
offer. Incidentally, Mr. Robertson said that Canada
very recently renewed its offer to the Inter-Governmen-
tal Committee to take 1,000 Jewish children from Europe.
External Affairs will reply to our note in the near
future, but probably will not be able to add anything of
importance to what Mr. Robertson has told me. Generally,
it would appear that Canada is fully cooperating with
regard to refugees.
Regraded Unclassified
EMBASSY OF THE
UNITED STATES OF AMERICA
Quito, Ecuador
February 15, 1944
No. 1093
Subject: Assistance to Refugees from Axis Oppression
The Honorable
The Secretary of State
Washington
Sir:
Referring to the Department's circular airgram of
January 26, 7:00 P.M., and with reference also to my despatch
No. 1041 of February 7 last regarding the position of the
United States Government with respect to the alleviation of
the problem of refugees from Axis oppression, I have the honor
/ & 2/
to enclose a copy, with transmation, of a note from the Ministry
for Foreign Affairs, dated February 12, 1944. This is a reply
to a note which I sent to the Ministry on February 2, in pur-
suance of the Department's airgram aforementioned.
Respectfully yours,
(Signed)
R. S. Scotten
JWG:ksg
840.1
Enclosures:
1/ Copy of Foreign Office Note No. #17-D-19
2/ Translation of above-mentioned Note
Original to Department
Copy to Consulate General, Guayaquil
Regraded Unclassified
28
Enclosure No. 2 to despatch No. 1093
dated February 15, 1944, from
American Embassy, Quito
REPUBLIC OF ECUADOR
Ministry of Foreign Relations
#17-0-9
DIPLOMATIC DEPARTMENT
Quito, February 12, 1944
Mr. Ambassador:
I have the honor to acknowledge the receipt of your Ex-
cellency's esteemed communication No. 47, of the second current,
in which you were good enough to inform me that His Excellency
the President of the United States of America has issued a de-
cree declaring that the policy of the United States Government
is "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 as-
sistance consistent with the successful prosecution of the war";
a decree by virtue of which there are created governmental de-
partments entrusted with the carrying out of this policy under
the direct observation of His Excellency President Roosevelt.
Your Excellency concludes by stating that the illustrious
Statesman of the United States would welcome the cooperation of
other Governments for effecting this difficult but important task,
requesting of me, consequently, a statement of the position of
my Government concerning this undertaking of assisting and al-
leviating the unfortunate victims of Nazi tyranny.
In reply I have the honor to inform Your Excellency that
the Government of Ecuador, faithful to the democratic norms and to
the humanitarian principles which govern it, views with special
sympathy the initiative of the United States Government for
alleviating the situation of the victims of the war and of the
aggression and the atrocities of the totalitarian powers, because
these purposes coincide with those maintained by my Government
for endeavoring to solve the grave problems which have been
created by the persecution, giving facilities for the establish-
ment in the country to those who, owing to their personal ante-
cedents, have been able to organize their lives under the pro-
tection of the laws and sovereignty of Ecuador.
I am waiting to learn the acts of the meetings of the Inter-
Governmental Committee of Political Refugees before communicating
to Your Excellency the decision which, with respect to the reso-
lutions of the aforementioned organization, my Government will
adopt, disposed, as it is, always to collaborate within the
scope of its possibilities for the best attainment of these very
commendable purposes.
I avail myself of the opportunity to reiterate to Your
Excellency the renewed assurances of my highest and most dis-
tinguished consideration,
For the Minister, the SubSecretary
(signed) C. Proano Alvarez
TR:JWG
Copied and checked by: KSG
Regraded Unclassified
29
February 15, 1944
TO:
Mr. Stettinius
FROM: J. V. Pehle
Attached hereto are proposed cables to the
Embassy at Madrid and the Legation at Bern designating
David Blickenstaff and Roswell McClelland, respectively,
as Special Representatives of the Board and Special Attaches
to the Missions.
It will be extremely helpful if these cables
are despatched promptly. The cables follow the form
approved by the State Department in the Hirschmann case.
(Signed) J.W. Pehle
Attachments
JMPehle:inp 2/16/44
Regraded Unclassified
30
DRAFT
TELEGRAM
AMERICAN EMBASSY
MADRID
Please refer to the Department's No. 207, January 25, in regard to
the establishment of the War Refugee Board. The Acting Executive Director
of the Board, John W. Pehle, has informed the Department that in conformity
with the President's Order of January 22, the Board proposes to appoint
Mr. David Blickenstaff, representative of the American Friends Service
Committee in Madrid, as the Special Representative of the Board with the
designation by the Department as Special Attache to the Embassy on war
refugee matters. The President's Order provides that the State Department
shall appoint such Special Attaches on the recommendation of the Board,
that they shall have diplomatic status, and that their duties and
responsibilities shall be defined by the Board in consultation with the
State Department.
The American Friends Service Committee has indicated that it has no
objection to Mr. Blickenstaff's accepting this appointment.
If, after discussing the matter with Mr. Blickenstaff, the appointment
meets with your approval, you should advise him that he is so designated
and that be is to have diplomatic status. It is assumed that there will be
no objection on the part of the Spanish Government to this designation,
although you may in your discretion approach the Spanish authorities
informally if you consider it necessary or advisable to do 80. You are
requested to confirm by telegram Blickenstaff's designation or to advise us
promptly if there is any reason why the designation should not be effective
at once.
Regraded Unclassified
31
- 2 -
You should advise Blickenstaff that:
(a) He is charged with the duty and responsibility of carrying
out the Board's policies and progress in Spain:
(b) He is responsible to the Ambassador and should discuss his
activities and problems with his regularly and fully;
(c) The Embassy will provide him with the necessary communications
facilities in carrying on his official duties;
(d) He shall extend all possible assistance to the Ambassador
in carrying out the instructions contained in the Department's reference
telegram;
(e) He shall work with and give all possible assistance to
public and private agencies operating in Spain in this field regardless
of whether such organisations are American, foreign or international;
(f) He shall develop and assist in the development of progress
and implementation of measures for the rescue, transportation, maintenance
and relief of refugees;
(s) He shall forward to the Board recommendations and frequent
reports on progress of work and difficulties encountered;
(h) In so far as the Trading with the enemy Act is concerned, the
Secretary of the Treasury has vested in the War Refugee Board and its
representatives in the field full authority to communicate with enemy
territory to carry out the purposes of the Order. The Secretary of the
Treasury has also delegated to the Var Refuges Board and its representatives
the power to authorise any public or private agencies, who may be subject
Regraded Unclassified
32
- 3 -
to the provisions of our Trading with the enemy Act, to communicate
with enemy territory for the purpose of carrying out the Order.
Blickenstaff is authorized to act accordingly.
After receipt of confirmation of Blickenstaff's designation
further detailed instructions will follow from time to time.
JBF:inp - 2/16/44
Regraded Unclassified
33
Regraded Unclassified
DRAFT
TELEGRAM
AMERICAN LEGATION
BERN
Please refer to Department's No. 251, January 25, in regard to the
establishment of the War Refugee Board. The Acting Executive Director of
the Board, John V. Pehle, has informed the Department that in conformity
with the President's Order of January 22; the Board proposes to appoint Mr.
Roswell McClelland, representative of the American Friends Service Committee
in Switzerland, as the Special Representative of the Board with the designa-
tion by the Department as Special Attache to the Legation on war refugee
matters. The President's Order provides that the State Department shall
appoint such Special Attaches on the recommendation of the Board, that they
shall have diplomatic status, and that their duties and responsibilities
shall be defined by the Board in consultation with the State Department.
The American Friends Service Committee has indicated that it has no
objection to Mr. McClelland's accepting this appointment.
If, after discussing the matter with Mr. Mo0lelland, the appointment
meets with your approval, you should advise him that he is 80 designated and
that he is to have diplomatic status. It is assumed that there will be no
objection on the part of the Swies Government to this designation, although
you my in your discretion approach the Swiss authorities informally if you
consider it necessary or advisable to do so. You are requested to confirm by
telegram NoClelland's designation or to advise us promptly if there is any
reason why the designation should not be effective at once.
34
- 2 -
You should advise McClelland that:
(a) He is charged with the duty and responsibility of carrying
out the Board's policies and programs in Switserland;
(b) He is responsible to the Minister and should discuss his
activities and problems with him regularly and fully;
(c) The Legation will provide him with the necessary communications
facilities in carrying on his official duties.
(d) He shall extend all possible assistance to the Minister in
carrying out the instructions contained in the Department's reference
telegram;
(o) He shall work with and give all possible assistance to
public and private agencies operating in Switzerland in this field regard-
less of whether such organisations are American, foreign or international;
(1) He shall develop and assist in the development of programs
and implementation of measures for the resoue, transportation, maintenance
and relief of refugees;
(5) He shall forward to the Board recommendations and frequent
reports on progress of work and difficulties encountered;
(h) In so far as the Trading with the enemy Act is concerned,
the Secretary of the Treasury has vested in the War Refugee Board and its
representatives in the field full authority to communicate with enemy
territory to carry out the purposes of the Order. The Secretary of the
Treasury has also delegated to the War Refuges Board and its representatives
the power to authorise any public or private agencies, who may be subject
Regraded Unclassified
35
- 3 -
to the provisions of our Trading with the enemy Act, to communicate
with enemy territory for the purpose of carrying out the Order.
McClelland is authorised to act accordingly.
After receipt of confirmation of McClelland's designation further
detailed instructions will follow from time to time.
JBF:inp - 2/16/44
Regraded Unclassified
36
INCOMING GABLE
1283
LISBON
Ree'd & Stensilled Feb. 15, 1944
CUSON PG149 LISBOA via RGA 188 , 2155 1/50
NIF LEAVITE
JOINT DISTRIBUTION COMMITTEE
270 MADISON AVENUE HEW YORK CITY
640 VB HAVE BEEN OFFICIALLY INFORMED BY SPANISH AUTHORITIES THAT GROUP 374
SEPHANDIC JEWS ARRIVING SPAIN FROM GERMANY NEXT DAYS STOP GROUP CONSISTS FOLLOWING
152 NEW
175 WOMEN
49 CHILDREN
STOP OUR REPRESENTATIVE SAMUEL SHQUEERA PROCEEDING TO BORDER RECEIVE ARRIVALS
STOP VS ASSUME THIS IS GROUP WHICH LEFT SALONICA SOME MONTHS AGO BUT WERE HELD
UP IN GERMANY WHILE SPANISH AUTHORIZED WERE EXERPING PRESSURE ON US EVACUATE
ORIGINAL SEPHARDIC GROUP FROM SPAIN STOP SPANISH AUTHORITIES SENDING SOME DOCTORS
AND MEDICAL SUPPLIES TO DORDER AND VE BEING asked SUPPLY NEGESSARY CLOTHING SINCE
GROUP STANS TO = VERY BAD SHAPE STOP VIEW THIS EMERGENCY SUGGEST YOU SEND IN-
MIDIATELY FULL ANOUNT FERMIARY BUDGET ONE MILLION PESNTAS STOP WILL KEEP YOU
PULLY AUTHORD
JOSHPH SCHNARTS
Regraded Unclassified
AIRGRAM
37
FROM American Embassy
Madrid, Spain
Dated February 15, 1944
CONFIDENTIAL
Rec'd Feb 25 1 P.
Secretary of State,
Washington.
A-59, February 15, 1944, 12 noon.
I do not consider this an opportune moment in our relations
with Spain to approach Spanish Government in sense suggested in
Deprtment's 207 January 25, midnight. Spanish Government has
during past year become thoroughly familiar with our policy with
regard to rescue of political and racial refugees from Nazi-occupied
Europe and Department has been kept informed as to extent to which
it has cooperated in this work. In this connection Department's
attention is called to my confidential despatch 1967 of January 31
summarizing evacuations of Allied refugees from Spain in 1943 in
which it is pointed out that Spanish Government during that year
facilitated evacuation of well over 20,000 refugees out of estimated
22,000 who entered Spain, most of remainder being stateless for whom
destinations could not be found and of whom 567 have since departed
for Palestine as reported in my airgram A-39 of January 27.
Pending receipt of separate report Department's attention is
called to following despatches submitted by Embassy during past
year which it is believed contain most of information desired:
648 February 16, 960 May 31, 990 June 10, 1165 August 5, 1391
October 1, 1692 December 7, 1943; 1932 January 24 and 1967 January 31, 1944.
When a better opportunity presents itself I shall speak to
Foreign Minister along lines suggested in Department's telegram
but formal representations at this time would be less helpful than
they will be a little later when the present crisis in our rela-
tions with Spain has been successfully passed.
HAYE
WL:FB/If
Copy (in duplicate) to Lisbon
Regraded Unclassified
38
- 15 1944
Bear siret
Reference 10 made to your letter of February 11
requesting our accistance in facilitating a trip to
Turkey by a representative of your Committee.
We are taking this matter up with the State
Department imediately and will de what we can to
expedite your request.
Very truly yours,
(Signed) J. V, Fehie
J. W. Pehlo
Acting Executive Director.
Margency Connittee to Save
the Jawish People of Europe,
2819 - 18th street, N.W.,
Washington 9. D. 6.
JXDulleister
2/15/44
Regraded Unclassified
39
FXB 15 1944
To:
m. Stettinius
Premi J. W. Pehle
Attached is a copy of a letter from Representative
will Regers, Jr., Co-Chnirman of the Mmergency Connittee to
Save the Jevish People of Europe, requesting the assistance
of the Var Refugeo Board in facilitating a trip to Tarkey w
a representative of the Committee.
I feel that " is extremely important to do what ve
can to take advantage of the situation existing today in Turkey.
I believe that the potentialities of evacuating persons to Turkey
A70 great If ve act fast. In this connection, in the event that
you have not already 5002 11, I AM analosing for your information
& copy of & news item which appeared in the Washington Post
yesterday.
We should take adventage as once of the services of any
private agency which dan be of help to us in this task. Amba-
sader Steinhards has alreade advised your Department that there
is no objection to the sending of a representative of the Emergency
Committee to Turkey (cable 1526 from Ankara of September 7. 1943).
Accordingly I was to urge that your Department do everything
possible to facilitate with all possible speed the proposal of the
Emergency Committee.
1 understand that Hr. Jabotinsky. who has been recomended
by the Committee, filed as application for as exit permit with
your Department yesterday. Since Mr. Jobotinsky is a Palestinian
sitizen, the Committee is also desireus of course of receiving
some form of assurance from your Department that he vill be able
to return to this country when his mission is completed.
I would appreciate it if you will advise me as seen as
possible as to what year Department is prepared to do in this mater.
(Signed) J. V, Pehle
2/15/44
Regraded Unclassified
40
G
I
EMERGENCY COMMITTEE TO SAVE THE JEVISH PEOPLE 02 EUROPE
initiated by the Kenzgency Conference hold in
New York - July 20-26, 1943
2317 18th Street, N.V., Vachington 9, D. G.
February 11, 1944
Mr. John V. Fehle,
Asting insentive Director,
War Refuges Beard,
Washington, D. e.
Dear Mr. Puble:
Ve are writing to request your assistance in facilitating
a trip to Turkey be a representative of this Committee.
From initiante knowledge of the provailing situation in Rumania,
Balgaria and Turkey, we believe that 11 is possible to arrange for
the immidiate ovneration of a limited number (800 to 1000) of Jevs
from Balgaria and Rumain into Turkey. if our representative could
reach Turkey within a week or two, while the present situation prevaile.
We feel that, with the good will of the American Ambasender, ve could
be of tremendous assistance in the efforts of this Coverament to save
⑉ of those Jews remaining in the Balka countries.
If this one be done, and we believe 11 on, it would be of the
greatest importance, not only because it would actually cave & certain
number of lives, but because 10 would cob the pattern for reques, and
it my very will effect favorably the position of the millions vhe remain
inside Mast Europe.
4a yes have stated, time is of @@@@@@@ in this matter. with this
in mind, our Committee strengly urges that X. Jabotineky be imediately
seat to Turiney as a representative of the Resrgency Committee.
Mr. Jobstinely 10 exceedingly suitable for the task. Nie background
and vest experience in imigration and refuges problem Age particularly
well adapted for taskling the problem before us. Mo has as intimate
knowledge of the Julian countries where he spent several years verking
with the masses of the Jowish pepulation there and helped with the ont-
gration of may thousands.
no was born in Ressia in 1910 and since early shildhood has iseue
is a dosen countries, in - of which he cettled until he weat to Pales-
Regraded Unclassified
41
- a -
time. of which he 10 new a citizen. In addition to Mobrow, he speaks
English, French, Russian, Tiddish and German, fluently. He also has a
limited knowledge of Rumanion and Folish.
In order that no. Jabotineky may leave immediately, be will
meed assistance in obtaining:
is exit permits
A re-entry permit (being a Palestinism
citizen, here as a visitor):
A&P transportation.
Anything you can do to help as in this matter will be greatly
appreciated.
Sincerely yours.
vill Regars, Jr.
will Regars, Jr.
Co-Jhnirman
(2/14-00 Miss Character, Mr. Gaston, m. white, Mr. Faml, Mr. Luxford,
w. Fricinam, who Model, Mr. Leaser, Mr. 1. M. Bernstein and
M. stewart. (ear).
Regraded Unclassified
42
WASHINGTON POST
February 14, 1944
TURKEY VILLING TO ASSIST JEWISH REFUGES TRANSFER.
Ankara, Feb. 18 (AP). - A high government official told
the Associated Press today that Turkey is willing to cooperate
with the Palestine Commission and Allied diplematic in assisting
Jewish refugees to leave the Balkans.
The problem was brought to the forefrent by the arrival
of a refugee committee headed by Dr. Isane Herses. grand rabbi
of Palestine.
"In cases where both the country releasing the refugees
and the country receiving them agree to the transfer, Turkey
is willing to net as the bridge," this efficial said.
Regraded Unclassified
43
Regraded Unclassified
FEB 16 1944
Dear Mr. Stettimius:
As disclosed by the files of the State Department, approximately 65,000
refugees in Transmisstria, deportees from Humania, are in imminent danger of
extermination at the hands of the retreating German armies. It is probable
that if such people are not evacuated immediately, they will be murdered.
Although this matter has been under discussion for many months, few if any
refugees have been ovacuated from Transmisstria.
I think the following action should be taken without delay:
1. Ambassador Steinhardt should be requested to appreach the Turkish
Government in an effort to enlist full cooperation in the evacuation to
Turkey of the refugees in Transmiestria and other areas adjacent to the
Black Sea. As I see it, the Turkish Government should be requested
specifically to relax border and other controls and otherwise to encourage
the entry of refugees into the country, setting up camps if necessary. In
exchange for this cooperation the Tarks may be assured that the War Refuges
Board will mike all efforts to remove refugees from Turkey to other places
if such action becomes destrable and, if necessary, will make arrengements
for financing the establishment and mintenance of camps in Turkey, as well
as the support of the refugees in such camps. I think that it is indipens-
able to the ressue of the refugees that I have mentioned that we make as
extremely forceful appreach to the Turkish Government along the lines
indicated. Ambassador Steinhards should also be requested to assist the
private agencies now actively interested in this project in formulating and
carrying out a program of evacuation from Rumania, including the obtaining
of necessary shipping, etc. Attached is a suggested draft of cable to
Ambassador Steinhardt.
2. In my opinion, it is equally important that this Government bring
forsefully to the attention of the Rumanian Government its view that the
latter's failure to permit refugees to be evacuated from Transnisstria and
other areas under its jurisdiction is criminal participation in Hitler's
extermination campaign for which Rumania will be hold accountable. It should
also be emphasized to the Remanisa Government that the Government of the United
States not only desires that such refugees be ovacuated as promptly as possible
to Turkey, but also that it is willing to take all pessible measures to aid
and assist this evacuation. This urgent case offers a most practical opper-
tunity for initiating the pelicy of bringing home to the satellite governments
44
Regraded Unclassified
- 2 -
the implications of their collaboration in Hitler's program of organized
murder and the possible consequences of such collaboration. A general
campaign of this kind in the case of all satellite governments vas suggested
in 4 letter to you dated February 10. Certain efforts along this line my
have been made in the past in the case of Rumania.. I think you will agree,
however, that the urgency of the situation justifies a new and much more
forceful attack. The appreach to the Rumanian Government should, of course,
be made through all pessible channels and at once.
As I view the situation, this approach should not be limited to
representations by the United States Government, but in so far as possible,
other governments should be asked to take similar action. In particular,
I think that it is of greatest importance to approach the Russian as well as
the British Government with a view to having them exert all possible pressure
upon the Rumanian Government in this matter. Such other assistance as can
be obtained from other governments in actually carrying out the evacuation
itself will also be extremely valuable.
I would appreciate having your views in this matter as soon as possible,
since my action if it is to be effective must be taken almost immediately. If
you are in accord with the suggestions made, I will, of course, clear them
with the War Department.
Very truly yours,
(Signed) J.W. Pehle
J.V.NEHIN
Acting Executive Director
Mr. 1. R. Stettinius, Jr.
Under Secretary of State,
Washington, D. 0.
JBF:bbk- 2/14/44
45
Regraded Unclassified
CABLE TO AMBASSADOR STRINHARDT, TURKEY
Refer to Gable No. 68, January 25, concerning War Refugee Board and
No.
of
February concerning appointment Special Attache Hirschmann.
Special attention should be given to the following matter.
The War Refuges Beard has resolved that one of the projects which should
be pushed with greatest speed is an effort to facilitate the evacuation of
as many refugees as possible from occupied areas to Turkey.
The Board feels that the most feasible way of accomplishing this
extremely urgent task is to obtain from the Turkish Government effective
measures to encourage the entry of more refugees. Concretely that government
should be requested (a) To relax border and other controls and take such other
action as will facilitate the entry of the largest possible number of refugees
from Dulgaria, Rumania, and other areas adjacent to the Black Sea, and (b) =
To make an announcement in as nearly an official manner as possible indicating
what is being done, and above all, that entry of refugees into the country
is permitted.
The Department is in full accord with the above program and you are
instructed at the earliest possible moment to approach the Turkish Govern-
ment with a view to obtaining their agreement to the plan. The request for
immediate action on the part of the Turkish Government should be made in the
strongest manner possible. In addition to making clear this Government's
determination to do everything within its pover to reseue refugees and its
expectation of full cooperation from the Turkish Government you my, if you
deem it advisable, indicate that (a) The War Refugee Board is prepared to
take all possible measures, financial and otherwise, to aid the evacuation
of the refugees to Turkey; (b) The Board is prepared to render full assistance
in the maintenance of refugees in Turkey; and (c) If the Turkish Government
takes necessary stops to facilitate the entry of & substantial number of
refugees the Board will make all efforts to move refugees from Turkey to
other places if such action becomes desirable. You my wish to discuss
specifically the possibility of setting up camps in Turkey in which refugees
entering the country could live. The Board would, if necessary, make
arrungements for financing the establishment and maintenance of these camps
and the support of the refugees in them. This plan may facilitate the
removal, on & compulsory basis if necessary. of refugees from Turkey to other
places if such action becomes desirable in order to permit the entry of more
refugees into Turkey from occupied areas.
In commection with the foregoing, you are, of course, aware of the fact
that the refugees remaining in Transmisstria are in imminent danger of
extermination by the retreating German armies, and that the evacuation of
46
- 2 -
these refugees is a problem of the greatest urgency. Accordingly, you
should do everything possible to aid in the development and execution of
masures to effect the evacuation of these people to Turkey. Various
private organizations are deeply interested in this problem and are
anxious to assist in financing and otherwise carrying out the project.
Representatives of at least some of such organizations in Turkey have been
requested to get in touch at once with Mr. Hirschmann for the purpose of
formulating a plan of action. You have previously indicated that the basic
difficulty of evacuation is one of transportation. The private organisations
interested in this project are making all efforts to secure ships and you
should give them every assistance. In addition, you should advise promptly
of any measures which can be taken by the United States Government to ⑉
that necessary shipping, neutral or otherwise, is available. Above all,
you should attempt to secure the full cooperation of the Turkish Government
in this matter.
Efforts should, of course, also be made as soon as possible to
increase the flow of refugees from Rumania to Turkey.
You should report to the Department the progress that is being made
in this matter, indicating the practical measures that will be necessary
to put the plan in speration, obstacles encountered, and such action as
you think the Government of the United States should take to facilitate
the operation.
JBF:bbk - 2/14/44
Regraded Unclassified
47
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Embassy, Chungking
TO:
Secretary of State, Washington
DATED:
February 15, 1944
NUMBER:
505
CONFIDENTIAL
Following cable from Adler to the Secretary of Treasury.
I have been asked by Kung to transmit the following
addendum to the message sent in my telegram of February 8,
no. 252.
In the first paragraph of my previous message,
attention was brought to the rise in the dollar cur-
rency black market rate in the United States, which
was caused in part by the rumor that America was asking
for a reduction in the official exchange rate.
Since, the position has considerably deteriorated,
transactions having occurred at rates up to 195; this
increase naturally impairs confidence with the diffusion
of the impression that the rate will be reduced and it
may be anticipated by us that it will contribute further
to the rise in prices. It is my desire to call to your
attention the circumstances so that you may be guided
accordingly in your consideration of current questions.
GAUSS
Regraded Unclassified
48
SECRETARY OF TREASURY
FEB 16 AM 9 56
EASURY DEPARTMENT
NOT TO BE RE-TRANSMITTED
OFFICE
COPY NO. 12
CERITISH MOST SECRET
J.S. SECRET
OPTEL No. 53
Information received up to 10 a.m., 15th February, 1944.
1. NAVAL
One of H.M. Submarines damaged by depth charges off NORWAY
yesterday. Help sent and air cover provided. On 12th just after sunset
an outward convoy was unsuccessfully attacked by 7 enemy aircraft west of
CAPE FINISTERRE. Aircraft from one of H.M. Escort Carriers shot down 2
aircraft and damaged another.
One of H.M. Submarines torpedoed and sank a ship, probably S.S.
CAPO PINO, Italian, 4,800 tons, off CRETE on 8th. Two of H.M. Australian
sloops with one of H.M. Indian sloops report sinking a U-bont off VIZAGAPATAM
on 11th.
2. MILITARY
ITALY. To noon 14th. Bad weather continues. In beachhead
area small enemy attack repulsed just west of ANZIO-ROME Road.
3. AIR OPERATIONS
WESTERN FRONT. 14th. 92 tons dropped on military constructions
Northern FRANCE. Thunderbolts attacked airfield in HOLLAND.
ITALY. 12th/13th. Wellingtons dropped 115 tons on objectives
southeast and southwest of ROME. 1 Wellington missing.
13th. Weather poor. 184 fighter bombers attacked objectives
in the battle areas. Enemy casualties 4, o, 8.
Regraded Unclassified
49
Copies of reply to:
Mr. Gamble
Mr. Shaeffer
Mr. Collie
Regraded Unclassified
50
February 16, 1944
My dear General Eisenhower:
In the absence of the Secretary, who will be away
for about two weeks, I am replying to your letter of
February 9th.
I have checked back on the story which appeared in
the papers that you had presented a War Bond to the
Treasury. I found that this information was released
as part of a round-up story concerning gifts to the
Government, which incidentally have amounted to well
over five million dollars since Pearl Harbor. It was
a routine report, requested by the press services.
In checking over the gifts, your bond was found. For
your information, I am attaching a copy of the release.
I have notified both the Division of Bookkeeping
and Warrants, where the gifts are handled, and the War
Finance Division, where Bonds are sold, to eliminate
any mention of your name in the future unless we have
your specific permission.
I regret any inconvenience or embarrassment that
the publication may have caused you.
Sincerely yours,
(Signed) D. W. BELL
General Dwight D. Eisenhower,
Supreme Commander,
Allied Expeditionary Force,
War Department,
Washington, D.C.
Attachment.
Regraded Unclassified
Constrions by 51
THE UNDER SECRETARY OF THE TREASURY mr. Bell -
WASHINGTON
February 16, 1944
My dear General Eisenhower:
In the letter absence of the Secretary, I am replying
who will for be away two
to your note of February 9.
I have checked back on the story which appeared
in the papers that you had presented a War Bond to
the Treasury. I found that this information was
released as part of a round-up story concerning gifts
to the Government, which incidentally have amounted
to well over five million dollars since Pearl Harbor.
It was a routine report, requested by the press
services. In checking over the gifts, your bond
was found. For your information, I am attaching
a copy of the release.
I have notified both the Division of Book-
keeping and Warrants, where the gifts are handled,
and the War Finance Division, where Bonds are sold,
to eliminate any mention of your name in the future
unless we have your specific permission.
regres any meorname Sincerely yours,
or that
the publication may have coused you
General Dwight D. Eisenhower
Supreme Commander
Allied Expeditionary Force
War Department
Washington, D. C.
VICTORY
Attachment
BUY
UNITED
STATES
WAR
BONDS
AND
STAMPS
Regraded Unclassified
52
February 16, 1944
My dear General Eisenhower:
In the absence of the Secretary, I am replying
to your note of February 9.
I have checked back on the story which appeared
in the papers that you had presented a War Bond to
the Treasury. I found that this information was
released as part of a round-up story concerning gifts
to the Government, which incidentally have amounted
to well over five million dollars since Pearl Harbor.
It was a routine report, requested by the press
services. In checking over the gifts, your bond
was found. For your information, I am attaching
a copy of the release.
I have notified both the Division of Book-
keeping and Warrants where the gifts are handled,
and the War Finance Division, where Bonds are sold,
to eliminate any mention of your name in the future
unless we have your specific permission.
Sincerely yours,
General Dwight D. Eisenhower
Supreme Commander
Allied Expeditionary Force
War Department
Washington, D. C.
FS:fw
2/16/44
11th
Regraded Unclassified
52
February 16, 1944
My dear General Eisenhower:
In the absence of the Secretary, I am replying
to your note of February 9.
I have checked back on the story which appeared
in the papers that you had presented a War Bond to
the Treasury. I found that this information was
released as part of a round-up story concerning gifts
to the Government, which incidentally have amounted
to well over five million dollars since Pearl Harbor.
It was a routine report, requested by the press
services. In checking over the gifts, your bond
was found. For your information, I am attaching
a copy of the release.
I have notified both the Division of Book-
keeping and Warrants where the gifts are handled,
and the War Finance Division, where Bonds are sold,
to eliminate any mention of your name in the future
unless we have your specific permission.
Sincerely yours,
General Dwight D. Eisenhower
Supreme Commander
Allied Expeditionary Force
War Department
Washington, D. C.
FS:fw
2/16/44
Regraded Unclassified
53
Supreme Headquarters
ALLIED EXPEDITIONARY FORCE
Office of the Supreme Commander
9 February 1944.
Dear Mr. Secretary:
Thank you very much for your note of January 28,
enclosing a copy of one of the posters run during
the Fourth War Loan Drive. I trust that your cam-
paign is a complete success.
Not so long ago some enthusiastic American sent me
as a present a war bond registered in my name. I
naturally took the attitude that this was merely an
expression of the sender's desire to help further
the war effort and so returned the bond to the
U.S. Treasury through the War Department. A little
later I was astonished and distressed to find that
this incident had found its way into the newspapers.
I do not know, of course, who gave out the story,
but may I request that if there should be any
similar occasion in the future, you instruct your
people to keep the matter completely confidential?
I know you will understand the feeling that prompts
me to make this request upon you.
Very sincerely,
Dwight
The Honorable Henry Morgenthau, Jr.
Secretary of the Treasury
Washington, D. C.
P.S. am making The Same request
you the a.g. 8 the was Nept.
pz
54
FEB 16 1944
My dear Mr. Secretary:
Receipt is acknowledged of your letter of
February 9, 1944 relating to the action of
Argentina in breaking diplomatic relations with the
Axis.
I appreciate being informed regarding the
policy of your Department concerning Argentina
and your assurance that you will advise me further
on this subject in the future.
Sincerely,
(Signed) D.W. BELL
Acting Secretary of the Treasury.
The Honorable,
The Secretary of State.
AFL:nrd - 2/12/44
Regraded Unclassified
TO/
55
Mrs. McHugh
D
2-18-44
Yesterday I sent you a copy of
the letter of February 16, 1944
to the Secretary of State signed
by Mr. Bell in the Secretary's
absence. However, I don't he-
lieve that you have a copy of
the incoming letter of February 9,
from Secretary Hull; thus the
attached.
pl
From: MR. PAUL
-
JIAL COMMUNICATIONS TO
É
- ETARY or STATE
Original to me 56
a c.
8/10/44- Then to WM,
DEPARTMENT OF STATE
Bome
WASHINGTON
CONFIDENTIAL
February 9, 1944
Mr. dear Mr. Secretary:
I refer to the action of Argentina in breaking
diplomatic relations with the Axis. While this action
is, of course, gratifying, I request that at least for
the time being there be no change in the treatment of
Argentina. The Department's August 26 policy memorandum,
transmitted under cover of my letter of September 15,
1943, remains for the present in full force. The
Argentine situation will be constantly reviewed in the
Department and after the future course of events shall
have become somewhat more clear, I may wish to communicate
with you further on this subject.
Sincerely yours,
The Honorable
ICTORY
Henry Morgenthau, Jr.,
BUY
CRITED
STATES
Secretary of the Treasury.
BONDS
...
STAMPS
Regraded Unclassified
57
iotated by Hayden Rayner's office
State Department - 2/18/44
BUENOS AIRES
February 16, 1944
Department of State
Washington
THE ENBASSY RELUCTANTLY AGREES TO MR. MANN'S RELEASE
IN VIEW OF THE POSITION OFFERED MANN GLADLY ACCEPTS.
PLEASE TELEGRAPH THE DATE HE SHOULD REACH WASHINGTON.
12/ ARMOUR
Regraded Unclassified
58
Memorandum for the File
February 16, 1944
I had an appointment with Admirel Leahy today at
2:30 P. M. We talked about twenty sinutes, during which
I outlined for him the origin, purposes, and method of
operation of the War Refugee Board. Admiral Leahy seemed
very sympathetic and said he vas delighted to see that
someone vas actually moving forward to do what could be
done on this problem. He said he knew how the Jews
were being treated because of his experiences when he
was Ambassador to Vichy, France. Admiral Leahy said he
doubted whether the Germans would be willing to let any
Jews out, but he felt very strongly that it was well
worth trying. He did not seen overly awed by the problem
of difficulty with the Arabs.
Admiral Leahy said that if there vas any point at
which he could be helpful on the matter not to hesitate
to call him. I told him that if matters came up involving
the War Refugee Board in which he did not understand our
position I would appreciate it if he would get in touch
with no, He promised to do this.
(Signed) J.W. Peble
Regraded Unclassified
59
MEMORANDUM
February 16, 194h
Stettinius called me today at 2:55 and said that
Sir Ronald Campbell was in his office discussing the
certificate matter. Campbell said discussions had been
had on this matter in the past with the State Depart-
ment when these matters were being handled by Breckin-
ridge Long and that he did not quite understand the gap
between the previous discussions and the request now
being made. According to Stettinius the British are not
disinclined to accede to this request, but want to know
whether that is all we want them to do. Stettinius sug-
gested that we have George Warren dig into the background
on this in the State Department with Keeley, etc., and
then get in touch with Hayter, the British Embassy man,
and us and go into the matter thoroughly. I told
Stettinius we would do this.
(#igned)J.N.Peble
JWP:mgt 2/16/44
Regraded Unclassified
60
February 16, 1944
Dear Dr. Jones:
In Secretary Morgenthau's absence
I acknowledge herewith your letter of Febru-
ary 15. 1944, with regard to Clarence Pickett.
Your letter will be brought to the
Secretary's attention upon his return.
Very truly yours,
(Signed) J.W. Pehle
J. W. Pehle
Assistant to the Secretary
Dr. Rufus H. Jones,
Haverford College,
Haverford, Pennsylvania.
JWP:mgt 2/16/44
Regraded Unclassified
61
Ing.
RUFUS M. JONES
Pehle.
Haverford College
Haverford, Pa.
February 15th, 1944.
Hon. Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D. C.
Dear Secretary Morgenthau,
In answer to your telegram I would say that it
1s inconceivable that we could willingly give up
Clarence Pickett for anything that would take him
away from his present work. He 1s made in heaven
for the far-reaching Quaker constructive tasks. There
is unfortunately no one who could in any degree replace
him. And I have a feeling that he is so completely
dedicated to this* work that he would hardly be likely
to leave it for anything else, but he 1s away from
home and I cannot consult him.
Unfortunately his health is very precarious and
We find it necessary to send him off for occasional
periods of rest in order to stave off a break-down.
With warm regards
Sincerely yours,
(Signed) Rufus M. Jones
Regraded Unclassified
62
February 14, 1944
DR. RUFUS JONES
SWARTHHORE COLLEGE
SWARTHKORE, PENNSYLVANIA
JOHN PEHLE OF THE VAR REFUGRE BOARD IS URGING CLARENCE
PICKETT TO TAKE AN IMPORTANT POST WITH THE WAR REFUGEE
BOARD. PICKETT HAS BEEN MOST HIGHLY RECOMMENDED TO THE
WAR REFUGES BOARD BY OUTSTANDING NEN WHO ARE GENUINELY
INTERESTED IN THIS CAUSE. I WANT PERSONALLY TO APPEAL
TO YOU TO DO EVERYTHING IN YOUR POWER TO GET PICKETT TO
ACCEPT THIS POST NOV FOR AT LEAST THE NEXT FEW CRUCIAL
MONTHS. I FEEL THAT THE SUCCESS OF THE BOARD MAY VERY
WELL DEPEND UPON THE EXPERT GUIDANCE AND ASSISTANCE WHICH
A MAN OF PICKETT'S OUTSTANDING ABILITY AND EXPERIENCE CAN
RENDER. I AN ADDRESSING YOU ON THIS MATTER NOT ONLY
BECAUSE OF YOUR POSITION BUT BECAUSE I REALIZE HOV DEEPLY
YOU FEEL ON THIS ISSUE. WITH PERSONAL REGARDS
H. Morgenthau, Jr.
SECRETARY or THE TREASURY.
O.K. H.M. Jr.
Regraded Unclassified
63
MEMORANDUM
February 16, 1944
Clarence Pickett called me today from Indiana. He
said he vas very serry but that he could not make the
necessary arrangements to come to the War Refugee Board
although he would be delighted to be of whatever help
he could on specific problems and would do everything he
could to be available on such problems when ve called
him. He pointed out that Mr. Vail, his principal
assistant, is leaving for India and despite his great
interest in the work of the War Refugee Board it is
impossible to make arrangements to come with the Board.
(Initialed) J. V. P.
JwP:mgt 2/16/44
Regraded Unclassified
AIRGRAM
64
FROM
Jidda
February 16, 1944
Rec'd: Feb-29-44 9a.
Secretary of State,
Washington
A-10, February 16, 10:00 a.m.
Reference is made to the Department's circular
airgram of January 26, 1944, 7:00 p.m. quoting the
policy of the United States Government with regard
to victims of enemy oppression, instructing this
Legation to submit a report on the situaxtion in Saudi
Arabia, and directing that the Government of Saudi
Arabia be approached to ascertain how far it is ready
to cooperate in the policy expressed in the President's
Executive Order.
The circular instruction referrred to above appears
to have no application to Saudi Arabia. There are no
Jews in Saudi Arabia, and the nature of the country,
the nature of its inhabitants, the tenets of the pre-
vailing religion (Islam) and the local adverse reaction
to Zionism, combine to make it certain that no Jew will
be permitted to enter Saudi Arabia unless a special
reason exists for doing so. Those same reasons make it
unlikely that Jews will apply for admission into Saudi
Arabia.
In the past two years one Jew is known to have
come to Saudi Arabia. He was British, and a salesman
of woblen textiles. That he ever came to Arabia is
believed to have been due to a misconception of where
Jidda is on his part, and to ignorance on the part of
the Saudi officials that he was a Jew. No refusals of
applications for entry of Jews are known.
In view of the special hostility toward Zionism
held in Saudi Arabia, both officially and privately, and
consequent suspicion of all Jews, it is believed in-
advisable for this Legation to explain the President's
policy to the Saudi Arabian Government or to confirm that
the Saudi Arabian authorities will not cooperate in any
such policy. Authorization to take no action in the
matter is respectfully requested.
MOOSE
JSM/cjm
Regraded Unclassified
65
Regraded Unclassified
AIR MAIL
no. 217
Lisbon, February 16, 1944
Subject: Relief of Victims of Enemy Persecution in Europe.
The Honorable
The Secretary of State,
Washington, D. C.
Sir:
In line with the Department's telegraphic instruction
no. 200, January 25 midnight, and after consultation with the
British Embassy and with members of the several relief organi-
sations in Lisbon, a meeting was held at the Legation on
February 9, 1944, at which were present Mr. Garran, Secretary
of the British Embassy, Dr. Schwarts of the American Joint
Distribution Committee, Mr. Conard, head of the American
Friends Service Committee, Mrs. Dexter (in the absence of
Mr. Dexter), head of the Unitarian Service Committee,
Mr. Spanien, secretary of the HIAS-JCA Emigration Association
(HICKM), and Mr. Crocker, First Secretary of this Legation.
The substance of the Department's telegram under reference
was conveyed to the meeting and comments were invited.
As a result of this meeting the four relief organisa-
tions above mentioned have sent in separate memoranda con-
taining valuable comments and suggestions which would appear
to embody the replies requested as to (a) What the United
States Government can do to effectuate with all possible
speed the rescue and relief of the victims of enemy oppres-
sion and (b) What can be done to make the Portuguese Govern-
ment cooperate more fully in carrying out this policy.
Copies of the memoranda prepared by the Joint Distribu-
tion Committee, the Friends and the Unitarian Service Com-
mittees and & translation of that prepared by HICEM, are
transmitted herewith for the Department's information.
001 Chamoey, Abrahamson, Aksin, Bernstein, Cohn, DuBois,
Friedman, Gaston, Hodel, Laughlin, Lesser, Luxford,
Mam, McCormack, Paul, Pollak, Rains, Standish, Stewart,
H.D. White, Pehle, Files.
66
Regraded Unclassified
- 2 -
The historical report included in the memorandum pre-
pared by the Joint Distribution Committee fully covers the
situation as it exists today in Portugal and requires no
further elaboration.
In general it can be stated that the conditions under
which refugees are at present living in Portugal are perhaps
as favorable as those in any other country in Europe. As a
matter of fact they are 80 favorable that it is the opinion
of Dr. Schwarts of the Joint Distribution Committee that
little if any response would be had to an appeal for volun-
teers to proceed to the new Reception Center recently estab-
lished in North Africa were arrangements made to receive
them there.
It will be notes by reference to the HICEM memorandum
that although the representative who was present on
February 9 meeting agreed with the sense of the meeting
that at present no useful purpose would be served by the
opening of a branch in Portugal of the Intergovernmental
Committee on Refugees or of the appointment as Intergovern-
mental Committee representative of a Portuguese national,
Dr. Bernstein, who was absent because of illness, neverthe-
less adduces certain arguments in favor of opening such a
branch office. Nevertheless, after further consultation with
the British we still hold to the negative opinion expressed
in the Legation's telegram no. 401, February 10, 10 a.m.
As reported in By 468, February 15, 5 p.m., I brought
the policy as expressed in the President's Executive Order
to the attention of the Secretary General of the Portuguese
Foreign Office, who indicated his agreement and sympathy
with the problems brought up by the refugees question. He
expounded at some length as to the well-known liberal attitude
always held by Portugal in this respect and emphasised
Portugal's humanitarian policy, which he said would be con-
tinued. He brought up the question presented by refugees of
Russian origin and explained that an exception had to be made
in their case because refuge could not be given to them in
Portugal. However, be felt that if it was a matter of small
numbers in transit this might be arranged provided they were
included in group passports.
In conclusion, it may be stated that the response on
the part of the representatives of the various American relief
67
- 3 -
organizations here to the interest shown by the American
Government in the refugee problem was one of extreme gratifi-
cation.
Respectfully yours,
For the Minister:
Edward S. Crocker
First Secretary
Enclosures:
1. From American Joint Distribution Committee;
2. From American Friends Service Committee;
3. From Unitarian Service Committee;
4. From HIAS-JCA Emigration Association (HICEM).
300
ESC/ajl
Regraded Unclassified
68
Regraded Unclassified
Enclosure no. 1, despatch no. 217 dated February 16, 1944,
from the American Legation in Lisbon.
COPY
AMERICAN JOINT DISTRIBUTION COMMITTEE
European Executive
242, Rua Aurea,
Council
Lisbon, Portugal
PORTUGAL AND THE REFUGEE PROBLEM
A) Historical Background and Present Situation.
At the very beginning of the refugee problem in 1933
entry into Portugal was quite easy and involved few forma-
lities. Regular immigration visas were issued by Portuguese
consulates in all parts of Germany and Austria and with
these visas immigrants came into Portugal, were given resi-
dence cards and were permitted to establish businesses
of their own without restriction. They were not permitted,
however, to compete with Portuguese labor and refugees
could accept employment only when the firm offering such
employment could prove that there was not a Portuguese
national who could fill the position. In August of 1938
the Portuguese authorities stopped issuing residence cards
to incoming refugees. Nevertheless some refugees continued
to come in. All in all between 1933 and the end of May
1940 several hundred Jewish refugees from Central Europe
arrived in Portugal. The great majority settled in Idsbon.
With the fall of France in June 1940, when people began to
come here in great numbers, the policy of the Portuguese
Government changed. They no longer issued permanent or
immigration visas but did issue transit visas to persons
who were in possession of an end Visa to an overseas country.
The attitude of Portugal was that in this emergency its
role would be that of a country of transit and not & place
for permanent or even temporary settlement.
As a. country of transit Portugal afforded facilities to
many tens of thousands of refugees who passed through here
from June 1940 to date. Refugees having in their passports
visas for an overseas country received the Portuguese transit
visa without much difficulty and were able to embark for
their ultimate destination. It is estimated that during
this period approximately 100,000 people passed through
Portugal on their way to North-, South- and Central America,
England, South Africa, North Africa, Belgian Congo, Palestine
69
Regraded Unclassified
- 2 -
and other territories. In the beginning the Portuguese
authorities did not examine too closely the validity of
the end visas which refugees presented and, as a result,
many thousands were stranded here because their end visas
were found to be not valid and they had no possibility of
emigrating. Gradually these refugees succeeded in obtain-
ing visas or in finding a haven of refuge, and the great
majority have since left this country. As a result, however,
the Portuguese authorities began to examine more carefully
the individual end visas of people coming here in transit.
For some time now transit visas are granted only to those
who have a valid end visa and a paid reservation on a steam-
ship leaving on a definite date.
Since 1940 the Portuguese authorities have consistently re-
fused to issue permanent visas to refugees or to permit
them to enter the country on anything but a transit visa.
A few hundred refugees from Spain did succeed in entering
the country illegally without a transit or any other kind
of Portuguese visa. After a relatively short period of arrest
the Portuguese authorities legalised the entry of these
people and have permitted them to remain in the country.
This entire group was placed in forced residence in Ericeira,
a small fishing town and summer resort near Lisbon, where
about 125 of these originally illegal entrants still remain.
As a result of the efforts of individual refugees and their
families abroad, and also as a result of the activities
of private relief agencies, often with Government ocoperation,
the great bulk of refugees who came to Portugal have now
reached a more or less permanent haven of refuge overseas.
There Bow remain in Portugal only 7 - 800 refugees, of whom
some 300 are in forced residence in Caldas da Rainha, a spa
about 100 kilometers from Lisbon; about 125 in Ericeira;
about 200 in Lisbon and the rest scattered in the provinces.
The great majority of the refugees now in Portugal are biding
maintained by American relief agencies. Thus, in the month
of December 1943, the American Joint Distribution Committee
alone had on its relief rolls 551 individuals.
The refugees who arrived in Portugal since 1940 are not per-
mitted to engage in any type of work or business activity.
Those who are assigned to forced residence in either Caldas
da Rainha or Ericeira are not permitted to leave the town
without special police authorisation. Children of refugee
families
70
- 3 -
families are permitted to go to schools provided they, or
& relief agency, pay the tuition fees. Religious activities
are permitted and small synagogues have been organized both
in Caldas da Rainha and in Ericeira. Group activity of a
recreational or vocational nature 1s, however, not encouraged
although on occasions specific projects may be authorized
by the Police. Within the town to which they are assigned,
however, the refugees have complete freedom of movement and
of choice of residence.
Since Portugal does not border on any occupied territory, it
is impossible for people fleeing from these territories to
come into the country without first passing through Spain.
As a result of this and also because of the Portuguese atti-
tude on visas, the great bulk of refugees who fled "illegally"
from France and other occupied countries of Europe in a west-
ward direction, came to Spain and remained there until they
were evacuated either through Portugal, when they had obtained
a transit visa, or directly from Spain to North Africa or to
overseas countries on Spanish steamers leaving from Spanish
ports. Because of the fact also that Portugal does not border
on occupied territory, the attitude of the Portuguese Govern-
ment has had practically no effect on the ability of refugees
to escape from Nasi territory. There have been no instances
in which the Portuguese authorities have turned back people
at the border. On the contrary, people who came in illegally
were soon legalised and permitted to remain in the country.
B) How we and the Portuguese Government could help from here
in the resous of Jews and other persecuted minorities
from Hitler.
Several possibilities exist for enlisting the help of the
Portuguese Government on behalf of Jews and other persecuted
minorities in Axis or Aris occupied Europe.
1) The American Government could approach the Portuguese
authorities and suggest to them that a haven be offered to
Jewish and other children now in France, Belgium and Holland,
permitting them to come into the country either for a limited
time until they are evacuated or for the duration of the war.
In this connection it wight be necessary for the United States
Government, either acting alone or in cooperation with other
governments, to guarantee to the Portuguese Government that
any children coming into Portugal under this plan will be
evacuated
Regraded Unclassified
71
Regraded Unclassified
- 4 -
evacuated either now or at the end of the war. It should be re-
called in this connection that the State Department has already
authorised some five thousand visas for children in France,
and those visas might be utilised if the children were brought
into Portugal. The Portuguese Government should be prevailed
upon to approach the authorities at Vidhy and ask that these
children be permitted to leave for Portugal. In the final
analysis the success of this plan would depend upon the ability
of the Portuguese authorities to convince the Vichy authorities
that these children should be permitted to leave. Without
French exit visas these children could not come out.
2) An appeal should be made to the Portuguese Government
to make available some of its shipping for the evacuation of
refugees from occupied Europe-at the present time. A possibility
exists of transferring some five thousand children from
Transnistria to Palestine. We are informed by our representa-
tives in Turkey that the Roumanian authorities are willing
to permit these children to depart if & neutral vessel could
pick them up at Constansa and bring them either to Istanbul
in transit for Palestine or directly to a Palestine port.
The obstacle to the carrying out of this plan 1a lack of ship-
ping and it is suggested that the American authorities approach
the Portuguese Government asking them to make available one
of their ships for this purpose.
3) There is some indication that some of the satellite
countries, like Slovakia, Hungary and Roumania, would be
willing to grant exit permits to Jews provided they had in
their possession evidence of an end visa to a neutral country.
The Portuguese Government might be asked to issue a number
of immigration visas to Jews residing in those countries.
In this connection, too, a guarantee might have to be given
to the Portuguese Government that those people coming here
under this plan would be evacuated after a reasonable length
of time.
4) The Portuguese Government has made it a policy not
to admit, even in transit, refugees who were born in Russia
or the Baltie countries. This has worked great hardship on
refugees who had end visas but could not come into Portugal
simply because they happened to be born in one of the above
mentioned countries. In the beginning, such groups were
routed through France and Casablanca to be embarked from
there. Now that has become impossible. In view of the fact
that we are now preparing to emigrate some hundred families
from
72
Regraded Unclassified
- 5 -
from Spain to Canada on duration visas being issued by the
Canadian Government, it is important that this restriction
be removed. Otherwise those families in Spain eligible for
Canadian emigration but born in Russia or the Baltic countries
will find it difficult to reach their ultimate destination.
5) In addition to serving as a country of transit, Portugal
has also served in a limited way as a food supply centre for
the internes of Nasi occupied Europe. Thus, on Licenses
issued by the United States Treasury Department and by the
British Treasury, refugee relief agencies have been able to
purchase food parcels in Portugal and send them to Theresien-
stadt in Csechoslovakia, to ghettos in Poland and to other
points of concentration. The shortage of food has necessarily
imposed some restrictions, and only certain types of food,
such as sardines, dried fruits and almonds, may now be exported
from here. Nevertheless, even within these limitations, this
kind of help could be increased if our Government issued
additional Ideenses to private relief agencies for the des-
patch of these packages. Licenses are now pending for per-
mission to send food to internment camps in Holland and in
other parts of occupied Europe. Speedier action on these
Licenses would be most helpful.
6) The position of refugees in Portugal would be in-
proved if evidence could be furnished that steady progress is
being made in their removal from Portugal. In this connection
the issuance of United States visas or visas to other countries
in the Western Hemisphere to families who are eligible under
the Immigration Laws and whose presence in the Western Hemis-
phere would not be detrimental to the war effort, would be of
great assistance not only to the individual refugees involved
but in creating a more favorable attitude on the part of the
Portuguese Government towards refugees in general. In recent
months the number of United States visas issued to refugees
now in Portugal has been negligible. It is suggested that
some way be found to simplify present procedures in the issu-
ance of visas and to increase the number of visas issued.
73
Regraded Unclassified
Enclosure no. 2, despatch no. 217 dated February 16, 1944,
from the American Legation in Lisbon.
COPY
AMERICAN FRIENDS SERVICE COMMITTEE
Lisbon Office:
Rua de D.Pedro V.7-1°.
14 February 1944
Mr. E.S. Crooker,
Counsellor of the American Legation,
Rua a Lapa 106,
LISBON
Dear Mr. Crocker:
With reference to the matters discussed in the confer-
ence you so kindly arranged for representatives of the
American Legation and British Embassy with Delegates of the
Welfare Agencies dealing with refugees, and in accord with
your suggestion that we prepare a memorandum on the several
questions, we beg to present the following:
First let me say that we appreciate very much the sugges-
tion that a branch office be established here of the Inter-
governmental Committee on Refugees (there have been times
during the past three or four years when such an office
would have been a veritable godsend), but the refuges situa-
tion as 1t stands at present does not seen to warrant the
setting up of such an office.
The number of refugees in Portugal is very small. Those
who have good chances of emigration are in general of nationali-
ties which have their own official representatives here to
look after the needs of their own people.
For those who are "Stateless", or for other peasons lack
such protection, the private agencies now here are meeting
their needs, so far as those are concerned who seem to come
within the purview of the proposal.
While
74
- 2 -
While we do not think the situation would warrant the
creation of a new office, we do believe it would be very
advantageous to have some one in the Legation and the Embassy
to whom we may address such matters as would be advanced by
official help. And your own generous offer and that of Mr.
Peter Garran will certainly cover this need.
On the specific questions you raised and on which we
might venture an opinion we may comment as follows:
1 - What the United States Government can do for the rescue
and relief of refugees in danger:
In Portugal refugees are not in imminent danger in the
sense evidently referred to. So that the intent of the
proposal would seem not to apply to this field. However,
if such an office were established, such problems of the
relatively small number here, as now vex the Relief
Committees would certainly be referred to it. The
following are suggestive:
a) The great problem is migration.
The Government might speed up the process on considera-
tion of visa applications. The process is in itself
80 complicated as to make it almost prohibitive to
immigration.
The Legation might be given certain discretionary
powers to act in certain cases, as such an office as
is proposed would certainly be given to act quickly
to save those in immediate danger. This would be
particularly valuable where the uniting of families
is involved.
Certain facilities might be offered for joining the
armed forces or working for them direct from here.
Visitors or non-quota visas might be granted at once
to worthy cases, unable for lack of family in America,
to get the immigration visa.
b) Transit visas. This process is now so complicated
and slow that persons with valid visas for other.
American nations are unable to get through before
the expiration of such visas.
e) Repatriation.
Regraded Unclassified
75
- 3 -
c) Repatriation. There is a considerable burden on
private agencies in the repatriation of American
citisens. Even their passports must be paid for.
As was done for those who went on the Exchange ships,
a promissory note wight be taken for expenses and
passages. Since those of military age will soon be
in the armed forces, they can soon pay their debts.
2 - Where helpful influence wight be brought to bear on the
Portuguese Authorities:
a) For the relatively small numbers now in Portugal.
1) The handicaps are usually due to police neasures.
For those who are in forced residence outside of
Lisbon, (which, it should be said, is imeasurably
better than any kind of concentration camps) the
process of securing permission to come to Lisbon
when necessary is slow, the time allowed is often
insufficient and legitimate reasons for extensions
are often not convincing. This situation may be
due to abuses of privileges by the refugees in
general, but it is a problem that such an official
office as is suggested would probably have to deal
with.
2) Residence visas. There are some refugees who have
slight chance of emigrating until after the war
and whose families might have a chance to join
them if they could secure visas other than
transit.
3) Work, The numbers are now 80 small that it
would not affect the economy of the country to
allow them to undertake some useful occupation.
Some have special skills which would not put
them into competition in any case with nationals.
This would not only relieve the Committees of
financial burdens, but much more important, it
would save the refugees from the degeneration
of stagnation.
b) For others.
1) Saving Children. Thinking of larger problems
of the victims of war, Portugal wight, as a
neutral on the very rim of the battle field,
take in a large number of children from France,
for a vacation and feeding program, by bringing
/them
Regraded Unclassified
- 4 -
76
them in by groups for a period of several months
each. This could be done with or without cost
to the Government. Switzerland did a magnificent
service in this regard. It could be handled by
the Portuguese Red Cross and financed, if neces-
sary, by funds raised for the purpose.
Non-French children, once here could be evacuated
to other countries. The USCOM had 1000 visas for
such children when the Germans came into "un-
occupied If France and closed the frontier. At
the time Canada offered to take 1000 and Argen-
tina 1000. Portugal might succeed in getting
these out,
2) Increasing numbers. As the war comes into France
the stream of fleeing refugees will doubtless in-
crease. Portugal probably will not open doors
for their entry unless some provision is previous-
ly agreed on to evacuate them. Some plan like
that which took 80 many from Spain to North
Africa, might be worked out 80 that Portugal
could be assured of their evacuation.
3) Transit visas denied certain persons. Persons
born in Russia, of whatever political position,
or of none, are denied transit through Portugal.
Some other nationalities are also denied transit,
though our Committee has not had cases other than
Russian. With proper guarantees, this rule might
be eased.
3 - Special obstacles:
The obstacles have been implied in each case presented.
We believe that, in establishing such a branch office
of the I.G.C. as is being considered, such facilities as
those required in our suggestions under No. 1, would
probably be contemplated, and could therefore be soli-
cited by the regular diplomatie representatives.
And such an office would certainly be expected to use
its influence in dealing with the local authorities in
the questions mentioned in Section No. 2.
4 - Recommendations for overcoming such obstacles:
a) That representation be made to the United
States Government on such of the suggestions
of Section No. 1 as the Legation thinks proper.
Regraded Unclassified
77
- 5 -
b) That representations be made to the competent
Portuguese Authorities as may be necessary on
cases as they arise and can be presented con-
cretely and from which may be established
certain rules or principles of procedure.
c) On the suggestion of bringing children to Portu-
gal, the question be raised with the Red Cross
or directly with the Government.
Discussion will doubtless bring out other proposals,
but these are presented as a basis for study.
Sincerely yours,
(Sgd.) Philip A. Conard
Commissioner
Regraded Unclassified
78
Enclosure No. 3, Despatch No. 217 dated February 16, 1944,
from the American Legation in Lisbon.
COPY
UNITARIAN SERVICE COMMITTEE
Lisbon, Portugal
Rua Marques de Fronteira 111, 1°
Dr. Elisabeth A. Dexter
Associate Director
February 14th 1944
Mr. Edward S. Crocker,
American Legation,
Lisbon.
Dear Mr. Crocker,
I have discussed the questions posed by Mr. Hull's
cable with the members of our staff, and here are the
suggestions which occur to us:
I. What can the United States government do to aid refugees?
(1) Transit visas could be speeded, and pending appli-
cations for residence visas could be cleared more rapidly.
(2) Some provision should be arranged for single re-
fugees. At present, Canadian visas are available for most
suitable family groups now in Portugal. It is particularly
demoralising for a young person alone to live year after
year as a refugee. If the present restrictions on work
in Portugal could be modified (see II-5 below) this problem
would be less pressing.
(3) A representative in Lisbon might be permitted
to grant visas, within certain categories, without refer-
ence to Washington. This was done until July 1941, and
is now being done by the Canadian government. It would
greatly diminish the present delays.
(4) The question of visas for the duration might be
considered. At present the problem is so small that such
visas may hardly be necessary, but the possibility of a
considerable increase after landings in Europe, as has
happened in Switserland, should be borne in mind.
(5) The U. S. government ought to provide for repatri-
ation of American citisens. Most of these are war victims,
if not technically refugees. The private agencies here
are now carrying quite a burden which is shouldered by the
government of most countries.
Regraded Unclassified
79
II. How may the Portuguese government be asked to help re-
fugees?
(1) It might explore possibilities of getting some
children, orphaned or separated from their parents, out of
France.
(2) It might furnish ships for transporting refugees who
can leave the danger sone.
(3) In Portugal, it might facilitate the transfer of
refugees, arrested merely for lack of proper papers, from
prison to residence forcee. Such transfers occur less easily
now, at any rate for Christian refugees, than was the case a
year ago.
(4) Protest should be made against brutality in the
treatment of imprisoned refugees, and against persecution of
refugees for the expression of pro-allied sympathy -- a perse-
cution which has sometimes stood in sharp contrast to lenient
treatment of refugees who obtained German protection.
(5) In view of the small number of refugees now in Portugal,
the rule forbidding them to work might be, if not modified,
at least interpreted in a more lenient way. For example,
a really distinguished violinist was sent to prison for giving
a few lessons. Qualified students are not allowed to attend
university lectures. And so forth. Enforced idleness is the
most demoralising factor in refugee life, and is responsible
for most of the problems of behavior.
Cases to illustrate the need of the actions suggested
above can be furnished for every point.
A considerable majority, both those in and out of enemy
territory, are Jews, but there are still Christians who are
equally victims of the present War and the Nasi philosophy.
There is a tendency in Portugal to regard non-Jewish refugees
as ipso facto communists. It appears to be more difficult now
for a non-Jew than for a Jew to receive an American visa or a
British navicert. I completely approve of care in issuing
either of these, but believe that the care should be given
indiscriminately to all applicants and that the non-Jews,
although fewer in numbers, should not be forgotten.
Regraded Unclassified
80
- 3 -
In conclusion, may I say how greatly encouraged I feel
by this proposal on the part of the government, and by the
very sympathetic attitude shown by you and by Mr. Garran.
It seems to me the most cheering development which has occurred
for a long time -- aside from Allied victories, of course. I
have some appreciation of how heavily burdened you and Mr.
Garran must be. I hope that you will be able to make some
arrangement so that not all the work will fall on you two
personally. I an sure that this proposal gives promise of
great usefulness.
With great appreciation, I am
Yours sincerely,
(Sgd.) Elisabeth A. Dexter.
Regraded Unclassified
81
Enclosure No. 4, Despatch No. 217 dated February 16, 1944,
from the American Legation in Lisbon.
HIAS - JCA Emigration Association
TRANSLATION
(HICEM)
49, Rua Rodrigo da Fonseca, 2°,
Lisbon, February 14, 1944
MEMORANDUM
Attention of Mr. Crocker.
Following a meeting which took place at the American
Legation on the 9th instant, permit me to address you the
following memorandum:
1) A - Concerning the assistance which the American Legation
could give us in cooperating on the refugee problems
of our organization, we feel that the Legation might
wish to draw the attention of the State Department
upon the necessity of shortening the delay for the
authorization of visas, which would result in facili-
tating immigration into the United States insofar as
such facilities would be compatible with the national
interest and the security of the country.
B - Our Secretary, who was present at the meeting, in
which I could not participate for reasons of health,
informed me of the adjournment of the question of
the establishment in Lisbon of an office of the Inter-
governmental Committee.
However, the questions which pre-occupy our organization
in the sphere of its activities in connection with
emigration are intimately bound up with a representation
of this kind in Lisbon which would appear to me to be
desirable
Although it appears that Portugal does not participate
in the agreement which created the Intergovernmental
Committee, our experience has proven that its efforts
even in Lisbon, where the Deputy High Commissioner
Mr. Kullmann worked for a certain length of time,
Regraded Unclassified
82
Regraded Unclassified
proved to be useful. Furthermore, even when certain
requests have been made by cable to the Intergovern-
mental Committee, which in turn 1s connected with the
League of Nations, its interventions in favor of state-
less persons and bearers of Nansen passports, of which
it is the legal and recognised representative, have
borne fruit and have given satisfactory results. We
shall touch below on the question of stateless bearers
of Nansen passports.
This is why it seems to us that the representation of
the Intergovernmental Committee, desired and indicated
in the cable of the State Department, which is always
interested in the Committee, to judge by the effective
collaboration which personalities like Mr. Myron Taylor,
its head, and M. Malin, bring to it, could be extremely
useful in Lisbon as well as the other cities mentioned,
and it 1a to this end that we would like to ask that our
mission be facilitated by its support in many questions.
Besides, the Intergovernmental Committee has been up to
the present the only organization which recognizes the
value of its efforts and work and already, as the result
of the activities of Mr. James McDonald and Mr. Malcolm
and later of Sir Emerson, has come to our aid.
2) Concerning your requests for general information which you
were asked:
A - Portugal does not permit the entrance into the country of
refugees excepting in the case where the interested indi-
viduals are bearers of walid visas of ultimate destination
or where proof can be furnished of their immediate depar-
ture (steamship reservations, etc.). The only restriction
is applied to stateless bearers of Nansen passports and
those originating in the Baltic States, that is to say
persons born in former Russian territory, but in view of
the small number of refugees of this category we have not
deemed it necessary to ask the Intergovernmental Committee's
intervention as a solution has been found by embarkation
from Spain.
B - Portugal even applies this line of conduct to its own
nationals since it has confined at Curia and at Coimbra
groups of refugees of Portuguese nationality recently
arrived from France, preventing them by forced residence
in a pre-determined spot from even earning their living
in the country whose passport they nevertheless hold.
83
- 3 -
C - The number of refugees in the country is reduced and we
have the impression that only the departure of those who
are now here will permit now entries, always, however,
under the same conditions.
D - As to the immigration of children, we are authoritatively
informed that Switzerland has accepted a rather large
number of them within its territory; furthermore, the
Argentine, since its break in diplomatic relations with
the Axis countries, has authorized the entry of 1,000
children originating in the occupied countries. The
realisation of these projects has been prevented only by
the question of exist visas, which the occupying authori-
ties have not granted.
If Portugal would make a similar gesture to that of Switzer-
land and the Argentine, it would represent an important
moral factor even though there to no great hope that the
children in question could be gotten out.
B - We attach to this memorandum certain statistical information
concerning the refugees at present in Portugal.
Regraded Unclassified
84
APPROXIMATE STATISTICAL INFORMATION
1) Foreign Jewish population in Portugal February 1, 1944:
(In these figures are included foreign Jews forced to
reside either in Caldas-da-Rainha or in Ericeira.)
A - STATELESS.
(Ex-Germans and ex-Aughtins form the
majority) about
445
B - POLES.
(Including those originating in
Poland not actually recognized by
their national authorities, there-
fore stateless) about
487
C - VARIOUS.
(Belgians, French, Dutch, Csech,
Ingoslavs, Hungarians, etc.) about 193
TOTAL
1125
composed of the following:
1. War refugees,
44 pc. 495
2. Refugees because of
Hitler's pre-war per-
secutions,
32 pe. 360
3. Normal immigrants, 24 DO. 270
Total
100 po.1125
2) Note:
A - Portuguese recently arrived forced
to reside in Curia or Coimbra until
definite decision is made regarding
their nationality, really also war
refugees, about
150
Regraded Unclassified
85
- 2 -
B - Jewish population of Portuguese
nationality, about
525
TOTAL
675
TOTAL OF JEWS RESIDING IN PORTUGAL:
1800
In these figures we have not taken into account whether these
people were assisted or not.
Regraded Unclassified
86
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMERICAN EMBASSY, MADRID
TO:
SECRETARY OF STATE, WASHINGTON
DATED:
FEBRUARY 16, 1944
NUMBER: 548
CONFIDENTIAL
Given below is the substance of a cable sent to Algiers
February 16, 1944 as no. 61.
Regardless of the understanding of the British and our-
selves that prior to the departure of refugees from Spain
security screening of these refugees applying for admission to
Fedhala Center would be kept to an absolute minimum, it is
stated by the French representative now in Madrid to partici-
pate in this screening that his superiors have instructed him
on behalf of American, British and French Intelligence Services
to submit six copies of all applications with photographs and
thumbprints to Algiers for prior approval and certail supple-
mentary information which was not requested in application
forms and which neither we nor the British consider essential
for the type of preliminary check envisaged is being demanded
by the French representative.
At the best this procedure would be most cumbersome and
especially unfeasible as regards those refugees still detained
in Spamish camps and *prisons and who would stand to benefit
most from the project.
It is implied that detailed scrutiny in North Africa will
be given to all cases before refugees are allowed to depart from
Spain
and this
Regraded Unclassified
87
-2-
and this is contrary to our previous understanding and recom-
mendations as well as to information given by G-Z Algiers to
Belkelman before his departure for Spain. It would seem to be
essential that Allied and French authorities agree to forego
all but preliminary screening until after their arrival in
Northa Africa unless the actual evacuation of these person is
to be delayed indefinitely.
HAYES
Regraded Unclassified
88
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMERICAN LEGATION, BERN
TO:
SECRETARY OF STATE, WASHINGTON
DATED:
FEBRUARY 16, 1944
NUMBER: 952
CONFIDENTIAL
From Vaidie for the attention of Valensi.
We refer herein to the message transmitted in the
Legation's 841, February 10.
The question of obtaining regular monthly transfers
of 100,000 Swiss francs for needs of our refugees here has
been taken up by me with the Swies authorities. The Swiss
are willing to consider purchase of pounds sterling against
Swies france through intermediary of Bank of England and
Swiss National Bank, but they decline to take blocked dollars
against Swies france in Switzerland.
It would be appreciated by me if I could be informed
whether there is a possibility of monthly transfers of dollars
into pounds at Bank of England for the above stated purpose.
Additional resources will soon be needed for our requirements
here and advances by American and British Legations must be
reimbursed from the present million francs credit.
HARRISON
Regraded Unclassified
89
tated 2/18/44 by
D. Harmon, State Dept.
ANKARA
DATED February 16, 1944
This telegram must be persphrased
before being communicated to anyone
other than a Governmental agency. (BR)
Secretary of State
Washington
270, February 16 10 a.m.
Ira Mirschmann arrived Ankara February 14.
Department's 120 February 12 8 p.m. I also delighted with
his selection of (*) as the acting special representative of
the War Refugee Board to be assigned to the Embassy as Special
Attache in commestion with war refugee matters. I have
aequainted his fully with the Department's instruction under
reply.
Mr. Hirschmann is prepared to assume the responsibilities
deseribed and is familiarizing himself with the situation. His
only reservation is the time element as he has a commitment with
Bloomingiale Broa. regarding his return within a limited period
of time. He believes however that his leave of absence can be
extended if necessary.
Please inform John Pehle of the foregeing and Mrs. Hirschmann
of his arrival here.
10/ STEINHARDT
Regraded Unclassified
90
NOT TO BE RE-TRANSMITTED
COPY NO
12
U.S. SECRET
BRITISH MOST SECRET
OPTEL No 54
NAVAL
One of H.M. Submarines sank or damaged 5 cargo ships off Norwegism
Coast. On 10th another of H.M. Submarines probably torpedoed & cargo ship
escorted by two trawlers. To Norwegian M.T.B.'s sank two small cargo hipe
south of KRISPIANSUND on 13th.
Early yesterday M.T.B.'s torpedoed an enemy trabler and seriously
damaged another off Dutch Const. Later, they engaged number of D-boate,
4 oi which were drumaged. Weather favourable at ANZIO past 3 days and unlondin,
resumed at full rate, nearly 4,200 tona discharged 14th. unemy shelling and
air activity has persisted, but no naval damage. Coastal forces damaged un
escorted Southoound convoy of lighters South of LEGHOAN on 13th/14th.
KORCULA ISLAND, ADRIATIC, shelled by our destroyers on 12th/13th.
2. MILITARY
Italy to noon 15th. 8th Army. Aggressive patrolling by Canadians:
enemy raid supported by artillery and tanks against 8th Indian
Division broken up by our artillery.
5th Army. Regrouping of our forces has been taking place in CASSINO
Arco and the bridgehead.
Burma Our operations on che road South of BAILI BAXAAR are
progressing slo ly against determined opposition.
3. AIR OPERATIONS
Western Front. 15th 52 heavy, 359 modium and 77 light and fighter
bombers with fighter escort attacked nilitury
constructions in Northorn FRANCE: 2 bombers and 4 fightors missing from these
and other operations. 15th/16th. 1,025 hireraft desputched: BERLIN 893
(44 missing); FRANKFURT-JN-ODER 24; Dutch Airfields 19; ARCHEN 2; Ses-mining
59, Intruders 22 (1 missing); Loaflots 6; Thick cloud over BERLIN moderate
concentration of sky markers achieved. Mosquitoes after main attack réport
fires and donse smoke.
Italy 13th. Maraudors dropped 74 tons at BUCINE VIADUCT.
13th/14th. Wellingtons dropped 84 tons on ronds in HOME/ANZIO
area. 14th. 241 escorted Fortrosses and Liberators bomboo railway and other
objectives in NORTHERN ITALY. 45 Mitcholls hombed PERUGIA railing centro.
71 light end 276 fighter bombers (8 missing) attacked objectives in the
bittle areas. Anomy casualties: 20:8:6; Ours 4 Fortressos, 2 fighters
missing.
Yugoslavia 14th. Kittyhawks not fire 60 is 5,000 ton ship off SPLIT.
Regraded Unclassified
MARSDAY,
FEBRUARY.
3
THE NATION
U.S. A., as in 1917, May Lose Seized German Properties
man chemical combine's imperial power in American chemicals. light metals,
Action to Hold I. G. Farben
films. dyestuffs and drugs.
General Aniline was taken over by the U.S. Treasury on Feb 16. 1942
Subsidiary Delayed Two Years
and shortly thereafter passed to the newly established Office of Alien Property
Custodian under Leo T. Crowley.
So far General Aniline has been treated, not as a captive enemy agreey of
By 1. F. STONE
economic warfare, whose past activities sabotaged defense and still hamper the
1044, Iry Field Publications)
war effort. but with the consideration a conventional trustee world give an
The Government of the United States is headed straight for the same
pm
mistake it made after the last war, when it permitted key German
ordinary business property entrusted under normal circumstances to his care
Should the company slip back into German hands, the Germans would find
properties in this country to slip back into German control,
Two years ago the U.S. seized 1. G. Farben's giant American sub-
that their key property in America, far from languishing in custody, was more
prosperous and better established than ever, particularly in Latin America,
sidiary, General Andior & Film: as enemy-owned.
which was the Reich's domain in drugs. films and chemicals before the war and
But in these two years Alien Property Custodian Leo T. Crowley has
may be after.
failed to take the steps necessary to ensure that this company shall not resume
The Germans would find the basic contracts binding General Aniline to
its ties with I C Farben after the war and
I. G, Farben still in existence.
again be used to restrict production of basic
materials essential in the defense of this
Still a Powerful Instrument
country.
General Aniline x Film is the lineal de-
They would again find General Aniline a powerful instrument of economic
warfare. well suited anew to the stealthy restriction of American defense prep-
scendant of the Gennan dvestuffs and phar-
urations should the Germans make a third try at world conquest.
maceutical firm whose production of explo-
This is not the mere alarmist diseovery of a reporter who strayed into a
sives, poison gas and medicine in this country
as we entered World War 1.
complex situation. These are facts that have key officials in Washington seri-
General Aniline Film Was the principal con
ously worried, though there is hardly one who will consent to do more than
venture an off-the-record sigh and shake of the head.
porate instrument through which the Nazis, in
These officials know the failure to make the most of wartime possession of
boration with American monopolists, re-
st ded and discouraged the production of
General Aniline is more than an economic problem. They realize that it is
aluminum. magnesium synthetic rubber. avia-
fraught with the gravest political and military significance.
tion gas. synthettic quinine and many other
Today, after two years of possession, the U. S. Government:
necessary defense materials on the eve of
Has yet to try the three anti-trust indictments returned against General
World War 11.
Aniline 12 days after Pearl Harbor; indictments accusing it of taking part in a
Unless public attention is sharply focussed
world conspiracy in dyestuffs, heavy chemicals and films.
on the dangemasly dilatory handling of this
Has yet to hail General Aniline into court and force it to accept stringent
key German property, it may slip back into
consent decrees forever barring it from resuming the cartel ties with E C.
German hands again after this war more easily
Leo T. Crowley
Farben which are involved in those three indictments.
than it did after the last.
Has yet to merge with General Aniline its key sales subsidiary. General
This series of articles is an attempt to explore the behind-the-scenes facts
Dyestuffs. which continues to get a 10 per cent rake-off on all General Aniline's
and to place them on the record, though it would take a Congressional investiga-
sales, though virtually all the materials go to the Government and require no
tion with power to subpena basiness records to bring the full inside story to
salesmanship.
light.
Has yet to make General Aniline's precious patents freely available to
American industry.
American 1. G. Set Up in 1929
Has yet to determine which of those 4000 patents are actually patents
General Aniline Film was originally known as American 1. C. Chemical
used by General Aniline in its divers business activities and which are patents
Corporation, the 1. C. like that in I.C. Farben, standing for "Interessen Gesell-
passed on to General Aniline by other German concerns for safekeeping during
the war.
shaft," a German term for a certain type of business combination. On Oct. 31,
The man on whose shoulders rests the responsibility for the little accom-
1939. after the European war began but before the United States became a
plished in those years of possession is the Alien Property Custodian of the
participant, American 1. C. was discreetly renamed General Aniline Film.
United States, Leo T. Crowley.
1. C. Farben established American 1. C. in 1929 to handle its extensive
Crowley's attitude and tangled personal relations will be the subject
Unclassified
American interests and cartel ties and it was the inner citade! of the great Ger-
tomorrow's story.
Crowley, Alien Custodian, Has Too Many Other Jobs
Foreign Economic Administrator
The Colonel Bestows a Kiss
London Economist all fan 2, 1937,
as is eviseme To obtain for Cer-
Delays Action Against I. G. Farben
main anders from the
which would otherwise go in such
countries as the United States."
By I. F. STONE
(1 an indelited for contain de-
(Copyrishi, 1944, My Fuld
twite am these have comminics to
Why, after two years in possession of General Antline &
nere excellent prize
PIN
Fflm, has Alien Property Custodian Len T. Crowley
Your every by Educant Tearn-
failed to take vigorons action to break the ties that blud
of Youfo 142, N/W in the
armed forces It La called Va-
this key German concern to its parent, 1. C. Furben?
Normal Suctation e. International
Let or inquire into the outlook and private business ties of the
mm/ publication in
didal In whose hands the govern-
1012 Due the Tab L'airring
need has placed General Anilier,
town politician, but lacks much that
Prime)
due most important German prop-
is required to cope will the highly
Used Blocked Marks
anty in America and the main ave-
complicated legal and technological
VISAO of the sinistes influence the
problems involved in the handling
The Schneler lanking insure in
Nazão exerted in stilling production
of foreign properties and patents
New York dealt in several types of
lary war materials - America le-
as Alien Property Custodian
murks. including the Adi
lone Pearl Barbor.
The Germins are old masters at
and the and
Too Many Jobs
entangling their enemies in legalls-
was linked by lives with
The Brat fact-about Leu T. Crow-
tie processes, To cope with alien
finance invelved The two andi-trust
that he has more jobs than
property and patent problems in
tvil artions.
man can handle well.
such a way as to free American lie
do intend hy: there 4º - is.
dustry from alien and monopolistic
to teoply that either Cress
For the government, Crowley la
chairman of the Federal Deposit
controls requires not mercly techni
or Emanuel are in any way pro-
Issurance Corp., Alien Property
ed knowelige but an
Col. Oveta Culp Hobby, director of the WACs, bestows a kiss
Nazi, On the contrary I know ilut
Cuitodian and Foreign Economic
timal and original mind.
on Capt. J. C. Lome after his marriage to WAC Maj. Mary
this Es not true of either man, Crow-
Administrator.
Durr at the Walter Reed Chapel al Washington.
ley told EFFICT that Emamel los two
"Elects" Own Directors
as the Army: one of them was
In private business, be is still,
though on leave of abseuse with
Were Crowley such a man he
bailly winnded. is a loyal
from the Feileral Deposit Insur-
Deld of war industry It owns Amer-
Beutenant of the President.
pay, chairman and president of
would have staffed foreign proper-
once Curp. His office says he them
ican Propeller, bolds majority cur-
Standard Gas & Electric, one of our
ties with boards of directors con-
this back in the government after
troll of New York Shipbuilding and
The Schroeder Role
greatest public utility holding com-
taining outstanding men capable of
pantes, a giant concern (MIW being
attacking alten property and patent
paying income taxes on it.
American Central Manufacturing
Emanuel, says he know
The only sulary Crowky Is still
Corp., and has large Interests in
of Schroder activities helpful to
put through the reorganization
problems from a fresh and public
wringer under the Public Utility
point of view, As Alien Property
drawing is late salary as chairman
Consolidated-Velten, American Air-
the Nazia, that he regarded ih
and president of Stainfant Gas and
lines, and Pan American" Alrways,
heads of the firm in Britain as pa-
Holding Company Act. According
Custodian Crowley "elects" these
directors himself,
this salary, according to ils latest
Emanuel is now president of Avia-
triotic Englishmen. All he could no-
In Crowley's riffice, be still slevates
some attention to Standard Cas al-
But Crowley's choices have been
report to the SEC, is $75,000 a
time Curp.
call was that they sermed estr-
year. Cravley told this corruspond.
Emanuel obtained control of this
ched over the dangers of Com-
fairs.
E conventional M the tristees most
ent that he is "a pour nan and,
company after his GWD banking
minism in Germany, Emanuel him-
An Idea of One Job
courts appoint in railmad and other
though a bacheler, needs this sal-
firm, Emanuel & Co., and 14 other
self is an American, him in Day-
Some conception of the
types of bankruptcy These mains
ary to take care of his many broth-
companies and individuals entered
ton, Ohio, and educated at St.
tode of Crowky's responsibilities
owally are picked from men close-
en and sisters.
into an agreement in August, 1937,
Mary's and Cornell.
may be gathered if one remembers
by associated with past massip-inent
As head of Standard Gas, Crow-/
to Inry 500,000 shares of Cord
Crowley is AS fat from being a
what his job as Poreign Economic
and only necasionally aml under
ky is in a sense, a subordinate
Carp. common from E L. Cord.
Nam sympathirer - your
Administration involves. The FEA
possure or in require to specific
of Victor Emamiel, president of
The SEC last year called allention
agualent. He repressota the vigist
is . merger of every agency of the
Cingressional legislation is an indo-
Standard Light ès Power. the bobb
to the fait that 1. Henry Schroder
wing of the Drinceratie party in
givernment dealing wab foreign
pendent trustees chosen
for company which controls Stand-
& Co. of London langht the largest
Wisconsin and savi be is in no way
economic matters, including the old
and Gas, and for many years the
part, 300,000 sharms, in this 500,-
controlled by Email
Board of Economic Warbare. Lend
Crowley's Directors
dominant figure in the Standard
(xx) share consorthem.
Since becoming Alien Property
Lease and the State Dept's OFEO
The directors Crowley faxe
Power-Standard Gas network.
The Schrodera dispond of this
Cantudian, Crowley has put Email
(Office of Fareign Op-
chasen has Andies any the
Emanuel, in him. over his dumi-
stock lale in 1939 but Gegard E.
nel in the board of General Dye-
erations).
conventional type of banker via hig
name position in Standard Power-
Donn - director of their New
stuffs, key sules subsidiary of Gen-
This is only oue of Crowley's
man. Whose respect Inc
Standard Gan and Info powerful post-
York security affiliate, Selunder,
end Andine, and several of
many jobs but this one alone
property rightr is well developed
Time as head of Aviation Corp. at
Bakefeller, remained à director of
Emanuel's close associates 141 the
birgi juties funnerly imposed on a
limit where enserptions of public
least in part to the financial support
the up company in the Aviation
board of General Andine,
nut
of able administrators, En-
interest is often indimentary Must
of the Schooler interests of
Corp. stop until 1941.
The question is: Can mes
cluding Mílo Perkins, Edward N
Condon and New York,
Wash the locking of the
of them are drawn from ranks in
wisse corporations had old 6-
Stettinius and Dean Acheson,
which close partnerships with Car.
These banking admists, which
Schroder bailing interests
suncial ties to an Anglos
A man with so many jobs should
WITE by far the ungest
also became the dominant figure in
iran cartels WITH accepted Insiness
banking Bro, a firm which WITH
be an outstanding administrator,
in the Standard Power-Standard
Standand Power-Stamland Cas, be-
belpful to the Naxis before the AT
practice, not from any eympathy
but in Washington today you email
with Nuzism or lark of putriotism.
Gas whig when Croyiley we age
coming chairoun et Standard Gas
and did a large business with Vizal
End few people who think Crowley
chainnan and president in
in Octuber, 1035.
but because these devilopes were
enterprises, be expected viganisly
good administrator. The PEA EN
profitable and ans effective way of
December, 1939, were complete
During this period the Schro-
DO linesk the The that Ind General
fighting domestic competitions
only helpful to the German finan-
der lanks were planting a part
Aniline and Central Dyv-tully Der I,
I bodly disorganized end demoral-
loed agreey, many of is key offi-
To men of this we. 9 director-
clis interests lutine Pearl Harbor,
in helping the Name addition ruw
C. Parben? There tim remains un-
cíals have resigned in distalisfar-
ship in General Aniline is not a
and WITH themelves involved in
muterials and market their wares
broken after two years.
tinn since Crowley tonk over.
foray into economic warfare but
two al the German cirtels whose
despite the world In
We will seo Instructions what nos
In justice lo Crowley, it must be
altimate fate may las in Crimby
March, 1037. German interests
just another trusteeship. The whole
agency of the Government Team to
hands.
with the aid of $300,000 subscribed
said that there la good reason to
interlocking system of patent
my in AMOUNT to the questions I
riglits, excludive Becauses and 10-
The parent London Box, J.
by the J. Henry Schender Banking
have raised.
believe his complaint that all these
jobs have been wished on him
strictive agreements. of which Cen-
Henry Schnoler & Co., was linked
Cirp. of New York, and several
by blood and lardness ties with
Cerman private industrial compa-
rather than sought out, that he'd
eral Andine was (4. part. is an
they
tial part of their own way of doing
powerful Nazi bankers in Hamburg
nies, formal the "Continental Ex-
Crowley Still
get rid of some of has duties
business, They are molitely the die
and Cologno, One of them. the
port and Import Carp." to arrange
he is badly overworked.
The second important fact about
turb it by the way they bandle
famous Kerl vun Schroder, heinght
the barter of Germin goods for
Hopes to Resign
Crowley is that be has the shrewd-
enemy patents, africe not a few
Hitler and the Rhindand individual-
American cotton.
PM's
- and Insight of a likeable small
ists together and has been reor-
The Istter corporation did a size-
men of this type used foreign
WASHINGTON, Feb. 18-A
ganizing the banking system of Oc-
able business until it attracted the
patents before the war and expect
publicabled report that Leo Γ.
cupied Europe to preserve German
unfavorable attention of the then
to use them again as weapons in
Crowley would man resign as
the familiar game of monopolistic
coutrol after Haler's defeat.
Attorney General Murphy in 1030
Alien Property Contodian balay
Emanuel lavame a leading lig-
and the new obstarle ist the coup-
restriction.
levight no dental from his office
The third important fact about
ure in American defense industry
terviling torill duties imposed In
Crowley's office sahl In: asked
Crowley is that he is A real (own
and utility finance in 1937 and
March of that year after the Nazis
Har President last July De for him
banker taken into the big time. Not
1938 with the apport of the
track
Prague.
resign o Alien Property Cas-
only is he impressed by the big
Schroder interests. In August,
In March, 1938, J. Henry Sclero-
todian at the time he took over
business men now cultivating hum
1937, Emanuel successed in taking
der & Co. of London helped to
the Board of Ecumomic Warfare.
be is obligated to one of them
liver Card Corp. from E. L. Caril
regarding a firm called "Compensa-
" was explained that this re-
for his livelibied.
and becoming claiming of in
Non Brokers, Ltd." to enable the
guest will stood and that Crow-
Though Crowley has three gov-
board. This concerni, now known as
Nazi regime to buy naw materials
ley still hoped the resignation
GENMENT jobs, be has only SHIRT pm.
Aviation Corp., is probibly the
with blocked marks. The company
would be permitted.
affilibent malary, $10,000 a year
leading Inding company in the
presented itself, according to the
Regraded Unclassified
PM, sunday, FEBRUARY 20, 1044
How Crowley's Standard Gas Pals Boss Alien Property
Victor Emanuel and Associates
many years of Republic Steel and
Trustees Under Custodian
- alim a invember of its executive
W. II. Coverdale, of
Circerdale à Calpitts. a fellow mem-
By L F. STONE
Terr of the Republic Steel board.
(Copprisht. IN. by Fald Publications)
was also named to the board of
Little more than a year ago, on Jan. 19, 1943, the SEC
General Aniline and George W.
(Securities and Exchange Commission) ruled formally
Burper, another partner in Cover-
that the relations among the Schroder banking interests of
date & Colpits, was appointed
Loodra and New York, Victor Emanuel, and the Stand-
president of General Aniline, and
à director, Johnson, Hertz, O'Hara,
and Power-Standard Cas holding company system were such that
Coverido and Burgee are regard-
they could not be trusted to bar-
of as part of the "Emenuel group"
gala "st arm's length" with each
of Schering Carp, fort about the
un the hoard.
other.
time the Covernment took it over.
or the other directors, two are
The decision was hunded down
I was unable to leus whether he
from vumpanies under Standard
under the Public Utility Holding
was normally elected or was ap-
Oil influence, Robert E. Wílson of
Company Act, which seeks to pro-
pointed to that position by the
Pan American Petroleum (original-
ted investors from situations in
Alien Property Custralian
by appointed a director by the U.S.
which there may be an absence of
Treasury), and E. C. Williams,
resi bargaining between a utility
'Poor's' Listing
technical adviser and director of
and
bankers.
Duminan lists himself in the
Victor Emanuel
U. S. Industrial Alcobul, who was
stunately no such law exists
1943 Standard & Ponv's Registry of
named vice president and chemical
to maintain "arin's length" relation-
Directors as vice president and di-
put Emanuel into control of that
director of Coneral Aniline by
ships in the handling of alien prop-
rector of Schering. The latest Cov-
aireraft and shiphuilding bokling
Crivley. Standard of had many
ety. The Alien Property Custodian
links with both General Aniline and
emmail export I could find. dated
emmpany,
of the United States receives a sal-
1. C. Farben before the war and
Nov. 19, 1945. also lists him in the
1 When Crowley was appointed
any from Standard Gas, last report-
at one time wanted to "swap" Its
same position But the offices of
chairman of the board and presi-
ed as $75,000 a year. Were - simi-
Cerman properties for General
Schering in New York claim that
dent of Stamlard Gas on Dec H,
lar rule applied, Victor Eminuel
Aniline so both would avoid seizure
he no honger is on the Imard.
1939, the Schroders were by for
and his associates would be de-
as alien property during the war.
A sinilar "arm's length" bargain-
the largest stockbolders in Standard
burred from acting as trustees and
Power. which controlled Standard
Emanoel's exact relationship with
ing rule would har Emanuel or
directors for properties taken over
General Aniline and General Dye-
Schooler nominees from the heard
Cas.
by Leo T. Crowley,
staffs has Imm a mystery for sure
of General Aniline. The Schroder
Schroders and the other banking
Instead we find at least five of
time, although he less been re-
firm was also banker for use of the
firms of the Emannel consorthum
Emanuel's bosiness associatet on
ported active in discuping their al-
firms in the international nitregen
unloaded their securities after the
the board of General Anßine &
Tairs in Washington, Though I have
eartal, is carrein which L G Far-
SEC began its action in the Stand-
Film, and we Bod Emenuel himself
this on good authority, it is denied
ben played A trategic role
and Gas case. Had they not done
by Emanuel.
and non of his associates among the
Neverthelers Emanuel and his
so the Schroders would have been
four directors named by Crowley to
associates are influential directors
held to be a "holding company
Conflicting Stories
the board of its key sales subsidiary,
of General Aniline or General Dye-
within the meaning of the Robling
General Dyestulls
In a long talk with Crowley m-
stuffs under the Alien Property Cus
Company Act and deferred from
cently this correspondent was told
SEC Ruling
todian,
all profitable dealings with Stand-
flatly that Emangel was not a di-
These gelationships may have
and Power-Standard Car.
rector of either General Análine or
The SEC ruled that "Emanuel is
the dominant personality in Stand-
nothing whatsoever to do with the
The SEC held that them were
General Dyetulfs, The next mom-
and Power and still is one of the
fact that after two years of poner
"indication" that the influence of
Ing in New York telephone calls to
sim the Government, through
most important officers in Stand-
these banking firms hait "diminish-
General Dyestuffs and to Emanuel's
and Cas' and it held that "The
Charley, has yet to force General
ed" since Crowley become head
office elicited the information that
Aniline to break its cartel the with
of Standard Car in December,
be is a director of General Dye-
Schroder intenests in London and
New York have worked with Eman-
I, C. Farlson, to make its patents
1939. Yet ruling three years later,
stuffs. Col. Johnson, head of Gen-
Inely available bi American online-
nel in acquiring and maintaining a
in January, 1941. the SEC that
eral Dyestufis, declined to say
dominant position in Standard af-
try, in in daringo its sales subsidiary,
"nevertheluss" a "wild nnt con-
whether Emanuel will or was not
fairs."
General Dyestulis, in the parent
chade that they (these 'indications')
* director and referred all ques-
corporation.
Had there been an "arm's leugth"
have lans sufficient to wipe out the
tions be Cruwley.
harg
rule applied to alien
Financing System
influence acquired during the
That afternam this currespond-
props.
Gerald E. Donovan, vier
name years of financial domination
est received a wire from Crowley's
It can also be said that the rela-
president and director of Schroder,
of the Stamlard evstem."
press representative, saying "Mr.
Rockefeller & Co. could hardly
teachips between the Schroders
Emamiel aske I advise you be was
and Emanuel and Standard Power-
'Moral Obligations'
in error vestendar. Victor Emanuel
have served notil recently under
Standard Gas do not necessarily
is on the boant of General Dye-
the Alien Property Custodian as
"With this background of bis-
vice president and director of Scher-
mean that flury would take advan-
stuff." By phone he later said that
torical associations. promises, rep-
lage of the holding system in lun-
Emanuel was appointed last Spring
Ing Corp.
resentations. and inoral abliga-
sling its
Curiously eningh General Dye-
For Schender, Bocketeller. to the
time," the SEC decision sohl. "we
But the rule embudied in the
stuff in a report submitted to
appricity affiliate of the 1. Henry
Holding Company Act in that free
conclude that the is listile to be
Standard é Point's Registry of IN.
Schroder Banking Corp. of New
an abome of areis leagth bargain-
bangaining cannot be expected
rectim last Ang. 12 mitted Email-
York and the latter was banker for
where the sume interests are a
ing in Innections between respon-
uel's name from the fist of its di-
the Schering Corp. The Schering
trolling influence un both sides of
dents and Stambed Prover and/or
rectived lat Fasenuel himself, If-
Corp., indicied in the international
the table. The same common sense
Standard Cas."
parting im Sept as be the forth-
bortinue cartel, Was taken over by
min would Incho to be a safe guide
Yet despite rheir associations
coming 1944 edition, listed General
the Government in February, 1942,
in alieu property matters as well.
Crowley has put Victor Emamiel
Dyestoffs aming his directorships.
as energy-owned.
Here un ML few items that an
and associates of Financel on the
Crowley's diffice was asked why
Donovan, (onserly a director of
"SEC" would find pertinent in
boards of directoriliin of General
Emanuel's name was omitted in the
Victo
insuel's Aviation Corp.,
pudging whether OF not there could
Analine and General Dvestulls.
General Dyeshilfs report but no
becan
Noe president and director
be "ann's longle bangaining her
According to a story for the finan-
answer has ever heen received.
tween Crowley and Emanuel.
etal pages of the Num York Times
NENT: How the Gernians got
FDR Says Crowley
Emanuel and the Anglo-German
last April 15, Emannel was at one
time stated to bic head of General
their properties back last time
banking-lerase of I. Herry Schrn-
To Quit One Job
det.
Aniline as part of the new 15-man
and been much more easily they
E Emamel and his associates
beant appolated In Crowlev last
may do it this time.
PM's Eurou
would have last enntrol of Standard
Spring
WASHINGTON, Feb. 10-AL
Pinver-Standard Gas in 1936 if the
"Also numed" as perspective an-
his week-end news conference,
Schroder interests, in return for 4
pointees to the board, the Times
Arnold Warns
President Roosevelt announced
75 per cent share of future financ-
reported. "Were several stles at-
that Leo T. Crowley would 6000
the by the bobling empany 15%
sociales of Mr. Email in the
Against Cartels
resign as Alien Property Custo
tem. had not mind half of the
Aviation Corp. and Standard Gas,
Thurman W. Amokl, former
dian. He said that acceptance
$3,500,000 revied to pay off bank
including Themas A. (Tfars, Louis
U. S. Altorvey General and cur-
of Crowley's resignation had
Inans for which the controlling
A. Johnson, Univ Lackhart, It.,
rently a Court of Appeals judge.
been in the cards for a long time,
shick was the collateral,
and John Hertz"
told the Federation of Protestant
but that Crowley would continue
as Foreign Administra-
Aviation Corp. Control
Lonis Inhnson was named by
Welfure Agencles it an anusial
Cowley in be president of General
meeting in New York that If in-
tor. The President also indicated
1 Emergel could not have taken
Dyesiuffs, requirtedly at $60,000 a
termational cartels are allowed
that Crowby might also give up
over Aviation Corporation Erem
year. and a director of General
to dominate postwar economy, a
his job as feed of the Federal
E. L Cont in 1137 a the Schools
Antine Herte and O'Hara were
depression as serinus as that of
Deposit funcance Corp.
fina in Landon had not benefit
made directors of General Aniline.
15 years ago will renult.
200,00 of the 500,000 states that
Emanuel has been - die tur for
Regraded Unclassified
m
2-21-44
Suit Asks Return of Stock
in the drug end of the busine-
even more quickly,
ral Dyestuffs to remain intact,
According to the Kilgore report
'wre owners may succeed in re-
the old Sterling Company, nue yes
overing their properties as easily
after its solemn promise to the Gm
il they had been left in the
Seized Because of Farben Ties
ernment, had secretly undertakes
words of a trustee for the duration.
and these, as Government revela-
to pay the Bayer Co. 50 per evit of
Sterling's profits on dnig sales "
this indicate, were not managed
Latin America. In 1920 the Cet
by the Germans as private prop-
Duisberg Claims His Shares in
ity in any ordinary sense, but
pit of explosives, poison gas and
inan percentage of those profits Will
were used in this war as in the last
medicínes. He could hardly have
raised to 75 per cent. "and the
informents of economic warfare
General Dyestuffs as U.S. Citizen
dreamed how quickly his propliecy
Latin American market for all drove
would come true, or just how great
products other than win
surrendered to the German even
By 1. F. STONE
a monopoly the Germans would
succeed in establishing,
Dany."
PM's Burcau
(Conoright, 1944, Try Field Publications)
In 1925, the Bayer Co. joined
Fought Blockade
WASHINGTON, Feb. 21.-The son of the first chairman
with 10 other German chemical and
By the time the second World
drug companies to form the giant
of the 1. G. Farben has filed suit in the Federal courts to
War began, German influence in
I. G. Farben, the greatest chemical
recover his stock in General Dyestulls, sales subsidiary of
the company since reorganized as
combine the world had ever seen.
Sterling Drug, Inc., was so strong
General Aniline & Film, I. G.'s potent and disloyal
This combine, by resuming control
that the American concern ar-
American offspring. The stock was seized by the Gov-
of properties and patents seized in
ranged in December. 1939. to help
emment after Pearl Harbor.
the last war, was soon powerful
its German partner beat the British
This suit was
velopments which endanger gov-
enough again to cripple the produc-
blockade by shipping pharmacenti-
filed by Eugene
erument control of scized German
tion of important war materials in
cal products to Latin America. in
L Carey, coun-
properties as the war in Europe
the U. S. A., as the Germans pre-
bulk and letting I.C. agents put
for the Cox
moves to a climax while the Office
pared for a second attempt at world
German labels on it for resale there.
Committee in-
of the Alien Property Custodian
conquest.
This in drogs as well as dyestuffs
vestigating the
still delays action to cut General
It is in the light of this history
the Germans came back to power
Federal C m-
Aniline's postwir contractural ties
that one must read the pledges
after the last war in the companies
il ations
with I. C. Farben,
given by Leo T. Crowley as Alien
the American government had
Commis $ n.
Property Custodian. General Ani-
taken over,
Garey has been
Would Be Precedent
line & Film, in its first annual report
General Aniline's drug interest
counsel in a so-
A victory by Duisberg would
under directors appointed by Crow-
was embodied in its 50-50 stock
ries of sults
brought since
establish a precedent for the recov-
ley, said it had been advised by
ownership of Winthrop Chemical
Engene Garey
the European
ery of stock in German-controlled
Crowley "that it was the Govern-
with Sterling. The Alien Property
war began to coerce American di-
corporations which were held by
ment's policy that the company
Custodian has taken over that 50
never should return to German
rectors of General Aniline and to
American citizens or by Swiss and
per cent interest, but Winthrop
ownership, German control of op-
recover stock seleed by the govern-
Dutch dummy corporations.
Chemical has been allowed to on
ment,
General Aniline or Film, of which
erations or German influence."
doing business as usual. Sterling
Family Connections
Duisberg was a leading executive
during the years in which the Gov-
Similar Pledges
escaped seizure by reorganizing,
as Sterling Drug. Inc., and is now
This latest of the series was filed
ernment alleges conspiracy with
But it takes more than a state-
dominated by one of Crowley's
on behalf of Walter H. Duisberg,
I. C. Farben, is a monument to our
ment of policy to make that policy
closest advisers, Tom Corcoran, es-
a naturalized American bom in
tragie incapacity to keep under our
work. Similar pledges were made
New Dealer turned Washington
Cermany and the son of the first
OWD control properties We took
during the Last war. At the end of
corporation lawyer.
chairman of L C. Farben. He Was
from the Germans in the last war,
the first World War the Bayer prop-
What concerns us here is that
vice president of General Aniline &
General Aniline's origin is in the
erties were sold to the company
the Germans learned something
Film from 1935 to 1939, and his
dyestuffs and pharmaceutical busi-
formerly known as Sterling Prod-
from their experience in the last
stock was seized not because of his
ness and patents of the famous
ucts, now Sterling Drug. Inc. The
war, a doubtful conclusion as re-
German origin but because of his
Bayer Co., taken over by the Alien
old Sterling company promised
gards ourselves. They put control
long and close association with
Property Custodían in the first
that these properties would not be
of their American properties in (1)
General Aniline, his past family
World War, The history of General
allowed to return to German own-
the hands of American citizens who
connections with I. G. Farben, and
Aniline and of the Bayer company
ership or control,
were trusted employes or natural-
the peculiar restrictions 00 the
testify to the prophetic insight of
Wilson's Alien Property Cus.
ized German associates and (2)
stock he held in General Dyestufis,
the warning Woodrow Wilson ad-
todian himself Investigated Sterling
hid their controlling interest in
which was sales agent in this coun-
dressed to Congress on May 20,
and reported that he found "Ho
Swiss and Dutch corporations.
by for both General Aniline and its
1919.
taint of German ownership-direct
It is one thing to seize soch stock
parent, I. G. Farben,
Fruit of Experience
or contingent-and no trace of Ger-
under wartime conditions. It is an-
Duisberg was named as co-con-
man influence-near or remote-in
other to keep control of it when
spirator but not indicted in the
"German chemical industry,"
the Company."
peace comes. If General Dvestuffs
dyestuffs conspiracy indictment re-
Wilson told Congress, "was and
But the indictment returned after
is unerged in General Aniline, if
furned Gens against General Aniline,
may well be again a thoroughly
Pearl Harbor reveals that by 1924
General Aniline is broken up and
Dyestulls and I. G, Farben
knit monopoly, capable of exercis-
the dyestuffs and chemical business
its patents thrown open to the
12
Pafter Pearl Harbor.
ing a competition of a peculiarly in-
and patents sold to the old Sterling
public, there is nothing these stock
The Duisberg suit, brought on
sidious and dangerous kind."
Company were back under the con-
OWNETS can do about it after the
the ground that he is an American
President Wilson's warning was
trul of Bayer. The Senate Kilgore
war exeept claim monetary dan-
citizen and not an onemy alion, is
the fruit of World War 1 experience
Committee, in its recent anti-trust
ages.
only One of Several provible de-
when German control of dyestulls
report on international cartels re-
But so long as the Government
and pharmacenticals crippled code
vealed that the Germans were back
permits General Aniline, and Gen-
2-21-44 -
An Editorial:
Crowley's Resignation Is Not Enough
At his news ennference last Friday, the President an-
subject to peculiar pressures.
hands of an alien enemy enterprise is to preserve its
nounced that Leu 1. Crowley would soon resign as
On the basis of its own investigations, PM suggests
principal assets intact for the enemy alien owners.
Alien Property Custolian. We welcome that ammoune
that the new Alien Property Custodian be instructed:
Both these classes of patents should become part of
ment.
. To merge General Dyestulis into General Aniline
the public domain, freely available to all American
The day before that announcement, PM began pub-
& Films, thus ending the 10 per cent profit the former
business,
lication of a serios of articles an Crowley and the Office
is making on Government contracts and eliminating
Example: Throw open to American business all the
of Alien Property Crestodian, The lacts in that series
1. C, Farben's principal sales agent in the U. S. A.
dyestuffs, chemical, pharmaceutical and other patents
were discussed with Crowley the week before publica-
€ To remove truin the Board of General Aniline
owned by General Aniline directly or through its sub-
tion, and with Victor Emanuel, his ociate in Standard
& Film any men associated with Victor Emanuel, the
sidiary, Winthrop Chemical.
Gas & Electric.
Schroder banking interests, Standard Of, or any com-
4 To break up Géneral Aniline into smaller com-
The President has made it clear again and again
pany linked by business ties with I. C. Farben before
panies under permanent American ownership, each
that he does not propose to let Nazi-controlled patents
the war,
handling a different one of General Aniline's many
and properties slip back into Germani hands. We know
1 To negotiate a consent decree with the Attorney
business interests, so that we may be rid of the monopo-
how deeply he feels on that subject.
General which will bind General Aniline and its com-
listic power this German-controlled firm exercised in so
President Wilson felt as deeply and sincerely opposed
stituent, subsidiary or successor companies not to enter
many different types of products,
to permitting the Germans to resume a position in the
into any cartel agreements ufter the war with 1. G.
To put a representative of the anti-trist division of
rican chemical and pharmaceutical indistries which
Farhen of any other European trusts.
the Dept. of Justice on the board of directors of every
€
again Le used to eripple America's defenses. In
To change the policy under which Crowley ex-
company taken over or supervised by the Office of Alien
today's story we present a few facts to indicate how
empted two classes of alien enemy patents from free
Property Custodian to act as watchdog against the re-
easily President Wilson's wishes were trustrated. We
licensing. One class is made up of those patents under
sumption of cartel ties and monopoly practices.
think the history of what happened to alien property
which exclusive licenses were already outstanding: such
We hope the President will pick, as successrip to
after the last war should be a warning to ns in this one.
exclusive licenses are monopolistic, the very foundation
Crowley, a main with no ties to cartel companies, either
We hope that, in picking a new Alien Property
of cartels and a frequent obstacle to full war production.
directly or through academic institutions controlled by
Custodian, the President will pick a man who, unlike
The other class is made up of patents used in the opera-
them, and that he will be paid a sufficient salary to
Crowley. is nut dependent on private salaries for the
tinns of a business taken over by the Alien Property
make it unnecessary for him to serve two masters while
bulk of his income, An Alien Property Custodian is
Custralian: to leave these patents untouched in the
in public office.-1. F. STONE
Regraded Unclassified
P.m.
2-22-44
ow Crowley's Private Pay Soared After He Got U.S. Job
State Tax Returns Show
AN EDITORIAL
Rise From $23,225 to $89,690
By I. F. STONE
PM's Burren
Why PM Is Publishing
WASHINGTON, Feb. 22.-The salaries of Leo T. Crow-
ley, who is about to resign as Alien Property Custodian
Crowley's Tax Returns
but will remain Foreign Economic Administrator, rose
from $23,225 in 1939 to $89,690 in 1942.
His private salary as chairman and president of Standard Gas
In the adjoining column today we reveal the salaries and
Electric, a job he still holds, rose
the debts of Leo T. Crowley, as disclosed by his State income
from an initial $50,000 a year at
Standard Gas & Electric
50,000
made public.
tax returns in Wisconsin, where State income tax returns are
the time of his appointment in De-
comber, 1939, to $65,625 in 1941
Total
$60,000
In the case of a private person, these figures would be none
then to $75,000 in 1942.
At the same time, his private in-
1941
of our business or yours.
debtedness has risen sharply. His
Federal Deposit Insurance
We print them because:
Scalle
Income tax returns, on file at
Corp
$10,000
1 Crowley is a public official and the public has a right to
Médisco, Wis., show that his an-
Standard Gas & Electric
65,625
know whether he has other sources of income and what they
payments of interest on his
Fox River Paper Co.,
are, whether he is heavily indebted, and to whom.
knowings rose from $11,296.78
Appleton, Wis
1937
Pan-American Air Lines
Crowley has been reluctant to discuss these facts, and this
1939 to $19,436.40 in 1942, At
40
per cent, the latter sum is enough
them. is the first time it has been possible authoritatively to report
TX loans of almost $500,000.
Total
$77,602
Crowley's Excuse
1942
Crowley, though his forthcoming resignation as Alien Prop-
erty Custodian has been announced by the President, will re-
Although Crowley has sought to
Standard Gas & Electric
$75.000
main head of the FEA (Foreign Economic Administration) and
treate the Impression that he re-
Federal Deposit Insurance
the FDIC (Federal Deposit Insurance Corp.).
calves DO Government salary, and
Corp.
10,000
Fox River Puper Co.
1 As head of the FEA and the FDIC, Crowley may be re-
offers that as his excuse for accept-
4690
quired to pass on matters involving financial interests with which
by
n salary from Standard Gas &
Electric while in public office, his
Total
$89,690
he is associated in Standard Gas & Electric, or Involving cor-
Ente income tax returns show that
The $40 from Pan-American in
porations whose directorships interlock with Standard Gas &
be has been receiving $10,000 a
1941 presumably represented di-
Electric or its many subsidiaries.
year regularly from the FDIC
rector's fees, since Crowley Was at
Both of Crowley's remaining public jobs are of great im-
(Federal Deposit Insurance Corp.)
that time a director. Victor Eman-
portance, FDIC has supervision over the entire banking system
of
which he is chairman. The FDIC
uel, Crowley's principal associate in
of the U.S. A. The FEÁ, a merger of the old Board of Economic
the Government agency which
Standard Gas & Electric, is regard-
Warfare, Lend-Lease and the State Dept.'s Office of Foreign
handled Federal insurance of bank
ed in informed circles here as one
Economic Operations, controls all foreign trade matters today.
deposits.
of the moving spirits in Pan-Ameri-
It is important that both jobs be handled by a man who is com-
Although the President an-
can's postwar plans for a giant
bunced last Friday that Crowley
western hemisphere combination
industry. pletely independent of all financial ties to private banking and
would soon resign as Alien Property
covering both airlines and com-
Custodian, there has been no indi-
munications.
(Crowley says he is returning his $10.000 a year FDIC salary
cation that Crowley will give up
to the Government after paying income taxes on it, and needs
'42 State Tax
his job with Standard Gas & Elec-
his Standard Cas & Electric salary (last reported as $75,000 a
tric. Crowley will retain his Gov-
Crowley' last dvailable state in-
year) m order to live.
emment jobs as head of the FEA
come tax return, that for 1042, In-
51 Federal statute passed in 1918 and still on the books,
(Poretgo Economic Administra-
dieates the businesses, banks and
though widely ignored in Washington today. says "No Cov-
tim) and FDIC
insurance companies to which he
ernment official or employe shall receive any silary in comice
The state Income tax reports also
was personally indebted and the
tion with his service as such from any source other than the
reveral that while Crowley used to
amounts paid in interest on those
Government of the United States
And
no
loans, though the size of the loans
person,
associa-
draw $10,000 a year from his own
the General Paper & Sup-
il emselves is not revealed:
tion or corporation shall make any contribution to, or in any
Co, of Madison, he ceased to
Goodall-Crowley Oil Co.,
way supplement the salary of, any Government official or em-
do so after obtaining his job with
Beloit, Wis,
$4970.37
ploye for the services performed by him for the Government."
Standard Cas & Electric.
Mutual Life Insurance.
If Crowley's salary from Standard Cas & Electric is neces-
N.Y.
4227.84
sury to pay his living expenses, then Standard Cas would seem
Various Salaries
General Paper & Supply
not only to be supplementing but paying the salary of a Gov-
are Crowley's various sul-
Co., Madi-on
3320.01
eminent official "for the services performed by hine for the Gov-
arles for the vears 1939-42:
Northwestern Mutual Life
2361.87
eriment."
Yates Estate, Continental
1939
We think the rule that no man shall serve two masters is a
Illinois Not'l Bank
1600.00
General Paper & Supply
New York Life Insurance
1335.90
sound one, in Government as in private life.
Ca, Madison
$10,000
Commercial State Bank.
We think Crowley owes it to the Government to resign his
edital Deposit Insurance
Madison, Wis.
1161.25
job FDIC. with Standard Gas and live ou his $10,000 a year salary from
Corp.
10,000
" E. Pareell Estate.
Standard Gas A Electric
3223
Madison, Win.
197.27
Il that salary is not enough - come late commitments, which
State Bank of Lodi, Win.
139.79
seem to he heavy ones, the Government owes it to Lan T. Crow-
Total
$23,225
Cuardian Life Insurance
ley to pay him an adequate salary as head of the FEA.
Co.
122.10
1940
That is why we are disclosing Less T. Crowley's state income
tax returns today.
deral Deposit Insurance
Total
$19,436.40
-1. F. STONE
Regraded Unclassified
Corp
$10,000
February 17, 1944
97
Original to Mr. D. W. Bell
Copies to:
Mr. White
Mr. Paul
Mr. naas
LYICTORY
BUY
OFFICE OF ECONOMIC STABILIZATION
-
-
WAR
WASHINGTON. D.C. 25
SONDS
-
SEASON
February 17, 1944
TO THE MEMBERS OF THE
BOARD OF ECONOMIC STABILIZATION
A meeting of the Board of Economic Stabilization
is called for:
11:00 a.m., Thursday, February 24, 1944
It will be appreciated if you will advise whether
or not you will be in attendance.
For your convenience, the form below may be used
for this purpose, and alr the self-addressed envelope en-
closed, the use of which requires no postage.
Very truly yours,
Edward 7. VaichardJr.
Secretary
Board of Economic Stabilization
To the Secretary
Board of Economic Stabilization
1206 Federal Reserve Building
Washington 25, D. C.
will not
will attend the meeting of the Board of Economic
Stabilization I called for 11:00 a.m., Thursday, February 24, 1944.
Regraded Unclassified
99
NOT TO BE RE-TRANSMITTED
COPY NO.
12
BRITISH MOST SECRET
U.S. SECRET
OPTEL No, 55
Information received up to 10 a.m., 17th February,
1944:
1. NAVAL
Yesterday aircraft from one of H.M. Escort Carriers,
escorting an outward convoy 140 miles west of ARRAN ISLAND, shot
down a JU 290 (4 engined transport type). Later a Beaufighter
destroyed a second JU 290. During mine laying off SOMIE ESTUARY
on 15th/16th a Norwegian-manned motor launch was sunk and another
damaged, probably by enemy moored mines. 5 missing, 10 wounded.
ANZIO. 15th. In continued favourable weather 5,830
tons discharged, bringing total to 81,000 tons. In air attacks
a U.S. Liberty Ship was set on fire while unloading and a U.S.
Destroyer slightly damaged by 2 glider bombs. 5 enemy aircraft
destroyed by our fighters.
2. MILITARY
ITALY. To noon 16th. German attacks renewed agains)
U.S. troops in the bridgehead. No details yet available,
RUSSIA. Russians have made some progress south of
GDOV and LUGA and have further enclosed Germans north of
ZVENIGORODKA, but Germans claim some progress in their counter-
attacks from West:
BURNA. ARAKAN. Japanese have occupied hills to north
and south of NGAKYEDAUK PASS, but one of the hills to the south
has been regained by a counter attack.
KALADAN. A Japanese strong point in KALADAN has been
captured.
3. AIR OPERATIONS
WESTERN FRONT. 15th/16th. BERLIN. 2,490 tons
dropped including 1,170 H.E., 1,320 incendiary, 18 8,000 pound
and 446 4,000 pound bombs in 38 minutes. Complete thick cloud
made observation of results very difficult but glow of fires
reported towards end of attack. Mosquitoes after attack reported
huge pall of smoke to 20,000 feet. A/A fire chiefly directed at
marked flares tended to decrease. Not many fires met over
BERLIN or en route,
FRANKFURT-ON-ODER. 94 tons dropped including 24
4,000 pound bombs. Very little A/A and no fighters.
ITALY. 14th/15th. Wellingtons dropped 128 tons on
roads near ROME.
15th. Fortresses dropped 256 tons at MONTE CASSINO
demolishing monastery. Liberators attacked a railway centre near
FLORENCE and objectives total 152 tons.
1944 FEB 18 AM 9 34
Regraded Unclassified
100
THE UNDER SECRETARY OF THE TREASURY
WASHINGTON
February 18, 1944.
MEMORANDUM ON CABINET MEETING
Mr. Stettinius said they hadn't any more news on
the Argentine situation. The President then said
"Well you saved my life the other day when the new
Argentine Ambassador came in to see me." Just about
a minute and a half before he came in, he said, he
had Mr. Stettinius' note advising that the Argentine
Government had again fallen. He said he told the
Argentine Ambassador he was lucky to be here as his
foreign minister and a lot of other ministers had been
kicked out. The Ambassador was rather surprised. It
made a rather peculiar situation - he was there to
present his credentials and his own Government had fallen
in the meantime.
Mr. Stettinius said they are having quite a bit of
difficulty with Spain; that the news is rather dis-
couraging at the moment; that our Ambassador isn't
making very much headway.
Mr. Ickes remarked at this point that he had a. message
for the President from the King of Saudi Arabia. It
came through a representative of the American Arabian
Oil Company out there and said "Tell the President that
I am relying upon him to save my people. If he doesn't
do this they are lost, as they cannot depend upon the
British." Apparently he told the same story to Stettinius
and Jimmie Byrnes and there was some discussion as to the
damage this would do if this man should tell the story
around too much.
The President then told a story about the signing
of an agreement regarding Iran in Teheran. He said
when he arrived there was a document already prepared
for the signatures of Churchill, Stalin and himself.
There was a clause in the agreement to the effect that
BYICTORY
the signatory powers would respect the sovereignty
BUY
of the Iranian Government. He said the first day
UNITED
STATES
WAR
BONDS
AND
STAMPS
Regraded Unclassified
101
- 2 -
he was there he talked to the British about it and they
refused to sign it unless the Russians signed. Next day
he talked to the Russians and Stalin wouldn't sign it.
He asked Stalin what he wanted and he said he wanted a
warm water seaport for his country. The President sug-
gested that he try to get the Iranian Government to set
up a. free port on the Caspian Sea of about ten miles
square and that they declare all of those ports open to
commerce of the world. After thinking a few minutes,
Stalin said he liked the idea and he would sign the docu-
ment. Next day they signed it.
I gave the President the new figures on the results
of the Fourth War Loan. He wanted to know how individuals
were doing and I told him we had $4 billion from individu-
als up to this time and we probably would get close to
$5 billion, but that we were certainly going to be
$500 million short of our goal. He asked if I had heard
what he was contemplating on the tax bill. Although the
Secretary had told me, I said No, I had not, but I could
draw some conclusi ons from the remarks he made at his
press conference this morning. He said "I don't see how
you could do that; all I said was that I would send a
message to Congress the first of the week and that I
didn't want to give out the contents of it as that would
be discourteous." I said "Yes, that's true, but if you
were really interested in the revenue and were going to
sign the bill, today or tomorrow would be the proper time
to sign it." There was some mention by the President of
some figures which Fred Vinson had furnished him and his
draft of a message. It was indicated that Mr. Vinson's
draft was used as a basis for the President's message.
The President said he made it more or less of a personal
message. Jimmie Byrnes remarked that the message he sent
up today vetoing the Subsidy Bill was also personal and
the House sustained his veto.
Mr. Stimson had nothing.
Mr. Biddle discussed the question of the resolution in
Congress concerning the treaty with Mexico now before the
Senate for approval.
Mr. Walker had nothing.
Regraded Unclassified
102
- 3 -
Mr. Knox said there was not much news from the
Pacific; communications had been bad for the past few
days. An unusual thing about the strike against Truk Wa.E
that the Japs had told their home people there was a land-
ing. Knox said he didn't know why this had been stated
unless tomorrow they will announce they have driven us
into the sea. There was no landing and they had no in-
tention of landing. Just a strike and get out. Apparently
there is some other place they are headed for. So far as
they knew everything was going quite well.
Mr. Ickes had nothing.
Mr. Wickard reported on the livestock population on
the farms at this time. Reports indicate that the farms
are well stocked with livestock except sheep; that is
down below what it was last year.
Mr. Jones had nothing.
Mrs. Perkins had nothing.
Mr. Crowley said he had worked out what he thought
was a good working arrangement between the UNRRA and
FEA. The Congress had passed the UNRRA bill last evening
and he wanted to ask the President whether he should go
after the full amount, $1,350 million, or just part of
it, say $500 million. The President thought probably
he ought to ask for no more than he needed, say $500
million. It would last six or eight months, although
there might be an advantage in putting it up to the
Congress in two ways - one to appropriate the $1,350
million or let them decide whether they wanted to give
us less.
Mr. Crowley also said he had the matter concerning the
British dollar position in the United States. He had been
discussing the matter with the State Department and the
Treasury but had not been getting very far with the British.
We were all of the opinion that the dollar position was
too high and that something should be done to bring it
down to the level fixed by the memorandum which the
President approved about a year ago. That memorandum
set between $600 million and $1 billion. The President
Regraded Unclassified
103
- 4 -
said that the three agencies interested in this matter,
namely State, Treasury and FEA, should prepare for his
signature a letter to Churchill and that he would send
a copy of it to Eden to see if he couldn't get some
action on it.
General Fleming reported on the burden which the
Civil Service regulations impose on the Department in
asking them to report on personnel problems. He didn't
get very much sympathy around the Cabinet table.
John Blandford reported on the drive in Congress by
Senator Byrd to dispose of the good assets of the HOLC.
Mr. Byrnes had nothing.
Mr. Vinson had nothing.
Nelson had nothing.
Vice President Wallace reported on his trip through-
out the country. He said that the West Coast was pro-
ducing a lot of bombers and a. lot of ships. He was
amazed to find they were putting out many more bombers
than they did last year at this time with about half
the personnel. Some of the people with whom he talked,
representing the companies, indicated that they have
hired people during this war that they never would have
thought of hiring in peace time, and they have been
amazed at the job they have done. He thought this was
a good omen. The American people can learn to do most
any job. He was particularly impressed with the number
of women that have been used in these plants.
DWB
Regraded Unclassified
104
MEMORANDUM FOR THE SECRETARY.
February 18, 1944.
Mail Report
Neither so heavy nor so interesting as the mail
of recent weeks, our receipts this past 7 days fur-
nished poor copy for 8. report. The few communica-
tions about taxes fell into two general classes --
questions about personal liabilities and comments on
the new forms. For the first time Form 1040 had con-
certed defense, several correspondents warmly commend-
ing it as concise and intelligible. These favorable
letters, however, were outnumbered by unfavorable
ones in a ratio of 3 to 1.
The decrease in bond mail was uniform throughout
the various fields it usually covers. Only 40 bonds
were sent directly to the Secretary for redemption,
about one-third of these being postmarked from
Puerto Rico. Of 30-odd complaints about delays, only
19 came from employees of the War Department.
Every mail brought in slogans, songs, and other
promotional material for both the Fourth and Fifth
Drives. There were also the usual reports of local
successes in the current campaign.
Chief targets of an unusually large number of
demands for economy on the part of the Government
were the Canol project, the proposed Arabian pipeline,
and publicized instances of food waste. Too generous
treatment of war prisoners or the population of
captured territory brought in several statements
that the writers would refrain from future bond pur-
chases if their money went to such expenditures.
Regraded Unclassified
105
General Comments
Chaskiel Nowomiejski, New York, N. Y. I am & Polish
citizen and arrived in this free and happy country in
July 7, 1941. I came here as an immigrant with my
son. I am 45 years of age and my son is 19. On
November 27, 1941, I received my First Papers for
citizenship and my son received his on November 18, 1942.
Since I have been in this country, I have participated
in all the War Bond Drives. Of course, I haven't been
able to contribute very much because of the short while
that I am in this country, but I always try my best to
help. For the present Fourth War Loan Drive, I am
enclosing herewith applications for bonds and checks
to cover them. May I take the liberty, at this occasion,
to appeal to you as 8. member of the recently established
War Refugee Board. Though I succeeded in coming to
this country with my older son, my wife and second son,
aged 16, were left behind. I am sure you can realize
how desperate and unhappy my plight is. I suffer con-
stantly with the thought that my family is in Poland,
suffering under the cruelties of Nazi oppression. I have
always known that it was the policy of the United States
to reunite families that have been torn asunder. Isn't
there anything you can do to help me? Please help me in
my greatest need.
Matthew Thomas, New York, N. Y. Enclosed please find
two War Bonds: C59521181E for $100.00, and Q73363442E
for $25.00. This is the amount due persons for old
debts, over many years' standing, and whom I cannot find.
Therefore, because I am a follower of FATHER DIVINE, who
advocates that all old debts must be paid if I am a true
follower, and because I cannot find these persons, there
is no nobler purpose than to have you use these in the
interest of winning the war, and by adding same to the
4th War Loan Drive. ***
Regraded Unclassified
106
- 2 -
John L. Neighbours, Baltimore, Md. I have written
to the Treasury Department twice for information,
but they have ignored my letters so I am writing this
to you. I had 2 War Savings Bonds which were cashed
in and the check issued at the Federal Reserve Bank
here in Baltimore, the sum - $37.50. The Treasury
Department made and sent to one Louis Sugner, 110 East
Lexington Street, this city, a photostatic copy of
this check. I have asked your Department to let me
know on what authority this was issued to another
party. If this information was given by court action,
I want to know it. If not, I want to know why they
did give this information without my consent. I have
tried for over a month to get this information but
I have not even been afforded the courtesy of an ac-
knowledgment of my letters. ###
Regraded Unclassified
107
- 3 -
Favorable Comments on Bonds
Gregory Pervelis, N.Y.C. Enclosed find Money Order
for $101.24 and six $25.00 Series E Bonds, all to be
deducted from the national debt. The $101.24 repre-
sents my two weeks' vacation money, and you will
receive this amount every year until these expenses
of the war are paid. This is my war -- therefore
I want to pay for it. # # # I do not see any sense
in buying bonds because I lend you the money and you
pay me back with interest. You will tax me to pay me
back, but the real losers will be the very poor who
cannot buy bonds, but are taxed directly and indirectly
to pay me the interest.
Raymond J. Roche, President, Printing Pressmen's
Union No. 1, Washington, D. C. About two weeks ago
I received the information that the Secret Service was
being used in the Bureau of Engraving and Printing
to intimidate pressmen employed there into buying more
War Bonds. I made a very limited investigation and
had hoped the matter would be taken care of and for-
gotten. I have recently been advised that members of
this Union, employed in the pressrooms, have been in-
vestigated and the word "treason" has been used. I want
you to understand that the Pressmen's Union advocates
the buying of bonds by its members to the limit of their
ability, and the Union has purchased Government Bonds
to the limit of its ability. This is not only the
patriotic thing to do, it is the sensible thing to do.
# # # I feel sure that no employee of the Bureau of
Engraving and Printing is guilty of treason, but if
there is 8. condition that creates any approach to trea-
son, that condition should be thoroughly investigated
by an agency of the Government outside the Treasury
Department. # I will be very glad to use my office,
and I will be at your service in an effort to adjust
this matter in a fair manner to all concerned, and to
the benefit of those we serve.
Regraded Unclassified
108
- 4 -
Unfavorable Comments on Bonds
S. Vernon Mann, Jr., Shower Sales Corporation, N.Y.C.
I have just read an article by Murray Davis, appear-
ing in one of the New York evening papers Friday,
February 11, 1944. The first paragraph reads as fol-
lows: "Treasury officials were worried today, as the
Fourth War Loan individual bond sales continued to fall
behind the average necessary to meet the state's quota
of $911,000,000 by next Tuesday. The same situation
appeared to prevail throughout the country." As the
head of a very small business, I am wondering if our
situation may not be identical to other small businesses
and whether this may not account for the situation as
reported by Mr. Davis. We have very nearly completed
a contract with the Government for approximately $603,000.
A substantial part of the money due us by the Government
remains unpaid for shipments made in the months of April
through December 1943. The Government is completely
satisfied with our product and there is no reason why
we should not have received payment for goods delivered.
My family and myself have bought bonds to the absolute
limit of our financial resources but equally obviously,
some of the bonds previously bought will have to be
disposed of as the money tied up in our Government ac-
counts receivable makes the continued payment of salaries
impossible. Although, of course, without definite knowl-
edge, I am of the strong opinion that this situation
faces many of the other small concerns, who have had
dealings with the Government and may very likely account
for the falling behind of individual subscriptions to
the Fourth War Loan.
E. M. Brown, Albany, N.Y. Great stress is given to the
energies exerted by various organizations for their
efforts in the sale of War Bonds. But there is one
class that do not get any credit for their efforts.
I mean the newsboys' sale of War Stamps. These kids
consistently sell War Stamps the year around and nothing
Regraded Unclassified
109
- 5 -
is said about it. Why not get next to yourself and
give them some credit in the papers? If they get
some public credit, their sales will increase. What
do you say?
Mrs. Antionette B. Hewitt, New Haven, Connecticut.
This is 8. protest against the red tape and cost of
transferring U. S. Bonds. Recently in settling my
mother's estate, I had transferred from myself as
executrix to myself personally, $2,125 Series E. Bonds
and $1,000 Series G Bonds. It would have been to my
advantage to have sold these bonds to help pay the in-
heritance taxes, but I decided that it was my patriotic
duty to keep them, not realizing that I would be penal-
ized by more than & half year's income from them.
These are the steps I was compelled to take: (1) Bonds
to investment broker, (2) Investment broker to U. S.
Treasury, (3) Letter from Treasury to broker, (4) Letter
from broker to me, enclosing various official papers,
making necessary the following: (5) Take 2 papers to
busy bank vice-president for signature and seal, to
confirm my signature (a notary is not sufficient),
(6) Make copy of Will, (7) Letter to broker returning
these three papers, (8) Visit to Probate Court to have
the legal Treasury Form copied and bond numbers added,
(9) Second visit to sign same, (10) Obtain "Certificate
of Appointment" from Probate Court, bill $1.00, (11)
Probate Court mails certified copy of papers to me,
(12) Letter from me to broker forwarding certified
copy, (13) Probate Court sends bill of $10.45 for mak-
ing out the application according to the Treasury Form
and filing it, (14) Probate Court sends bill of $3.00
for sending me a certified copy of application, (15)
Letter from me to Probate Court with check to pay these
bills, (16) Investment broker returns all papers to
Treasury. ***
Regraded Unclassified
110
- 6 -
A. M. Adams, Denver, Colorado. While $500.00 for an
individual is 8. small amount to put into Series E War
Bonds, I wanted to do so today, but I wanted to name
my (Catholic) Church as beneficiary on the bonds be-
cause for very definite reasons I cannot make a will,
as advised by my attorney. I am told by the Federal
Reserve Bank that the Treasury has made no provision
for naming other than an individual as beneficiary.
Many others might like to name Churches, Missions,
Societies, Institutions or the like -- either as such
or by giving the name of Pastor, President, or Officer
as agent or trustee -- any such term to designate that
the bonds are not for the individual but for the Church
or Institution. ***
Regraded Unclassified
111
- 7 -
Favorable Comments on Taxation
William A. Fisher, Dallas, Texas. I hope I am not
speaking out of turn, but I have felt a bit indig-
nant at the abuse which has been heaped upon the
Treasury Department in the last few weeks. I feel
that I just have to get this off my chest, so if it
is of any comfort to you to hear one man's opinion,
read on. I have since the first of the year,
carefully read and studied Form 1040 and the code
of instructions at least 8. half dozen times so I am
quite familiar with it and it seems a most complete,
exhaustive and informative document as could be
devised to make the best of 8. bad mess of legislation,
and I don't believe those who have criticized it
publicly have given it more than a cursory reading.
À week or so ago a number of our Members of Congress
took occasion to rip this form to tatters and to ex-
press their denunciation in the most vituperative
terms. The whole joke was on themselves, though they
probably did not realize it, for the body of which
they are members are solely responsible for the mess
of absurdity known as the pay-as-you-go tax bill,
which to make it plain as possible to the taxpayer
is embodied in Form 1040. It seems to me that there
are plenty of taxpayers who don't want to try to
understand the form, just take it for granted from
what they hear in abuse from those who make B. business
of criticizing it. ***
Edward W. Ohrenstein, Minister, All Souls' Church,
Greenfield, Mass. This may be 8. case of man biting
dog, and so what follows may shock you. But among
all the letters I know you receive from people who
threaten to kill you for putting out such income tax
forms, and in view of all the public derision which
Regraded Unclassified
112
- 8 -
your Department has undergone because it is respon-
sible for said income tax forms, I want to include
8. letter commending your staff for the fine job they
have done. Most of our citizens do not realize that
your Department is given 8. patch-work of laws that
even the Congressmen themselves do not fully under-
stand, and told to "go ahead and collect" from the
taxpayers. In view of the maze of tax laws Congress
has given us, I think you have done amazingly well in
your preparation of forms. The inclusiveness of Form
1040-A, its painstaking explanations and examples, is
a marvel. I congratulate your staff!
Rollin H. Jennings, Collingswood, New Jersey. There
seem to be many critics of the 1943 income tax returns,
but having already made up about 60 myself, it is con-
vincing to me that you have made a wonderful job of
it, because I have been able to make them all feel
satisfied, pointing out to them the fact that they
are paying two years' tax, and emphasizing the amounts
that they are "forgiven", which seems to hit the spot!
Even though there are several unavoidable calcula-
tions to compute, the sequence of the work is easy to
perceive, even in its complexity. The strings of my
heart are pulled when the people assure me of their
satisfaction in the results, and their eagerness to pay
what they should. I am confident that they have answered
the questions with conscientiousness. These people are
not the stuffed-shirt type, but most of them are hard-
working shipworkers or workers in other war industries,
and my contact with them makes me proud to be an
American. ***
Regraded Unclassified
113
- 9 -
Wm. B. Klein, Brooklyn, N.Y. # # # Yesterday I visited
the local office seeking assistance in making out my
Form 1040 for the year of 1943, and was duly impressed
with the efficiency and courtesy displayed there. My
net income for last year was $4,622.23, and the amount
of tax to be paid - $448.83 -- a matter of about
9 6/10%. I retired at 68 years of age in 1938 and
my income is not half of what it used to be, and I am
too old to go out and earn any money. # # * We're at
war and yet I do believe that old pensioners unable
to earn anything should receive some consideration.
*** I believe the public would be better satisfied
to have to pay a certain designated rate of their net
income instead of the present method, and if that be
done, it would seem to me that great savings could be
made to the Department in not employing an army of
experts whose duty it is to aid the public in comput-
ing their tax form.
Regraded Unclassified
114
- 10 -
Unfavorable Comments on Taxation
Carl Greenberg, Los Angeles, Calif. # # I am the
owner of United States Treasury Notes of Tax Series A-1944
and A-1945. Today I attempted to obtain certification
of my signature 80 that I may cash the Notes rather than
use them for income taxes. I sought to do so through
the Post Office, and I made several telephone calls to
Post Office personnel in this city. In come cases they
were completely ignorant regarding their powers to
certify such Notes. In one case I was advised any branch
Post Office was empowered to so certify. When I pro-
ceeded to a branch Post Office, the Superintendent
advised me that because the Notes specifically refer to
the "Postmaster" he had no authority to certify. I then
went to a sub-office of the Los Angeles branch of the
Federal Reserve Bank of San Francisco, which issued the
Notes to me. A clerk there advised me to try another
branch Post Office, and further, that the Los Angeles
branch of the Federal Reserve Bank would not certify,
even though said bank was the issuing agent. I failed
at the second branch Post Office. I then learned by
telephone from the Federal Reserve's Los Angeles branch
that they would certify, although the sub-office would
not. Further, they advised me they accept certifications
from any branch Post Office. I re-checked the Post
Office and spoke to a high official whom I know personally
and was advised that the Post Office has no official
information indicating that anyone other than the
Postmaster in person has authority to certify. After all
this, I proceeded to 8. branch bank. I obtained the
certifications without any difficulty except that I was
advised I would have to pay 8. fee of five cents for each
Note certified--which I finally had waived. # # # In
view of the fact that the Treasury has provided for this
alternative method of certification, I would like to
Regraded Unclassified
- 11 -
115
suggest that some method be worked out with the
Postmaster General so that all employees concerned
would be fully acquainted with their rights and
duties in such matters. I consumed two full hours
of valuable time trying to have something done that
should have taken five minutes. Additionally,
I crossed and criss-crossed most of the streets in
the downtown district in my peregrinations. Probably,
if I weren't somewhat hot under the collar, both
literally and figuratively, I wouldn't be writing
this too long letter. #
#
Congressman John Z. Anderson (California) forwards
& letter he has received from Arthur H. Samish,
San Francisco, Calif. We respectfully direct your
attention to the anomalous situation which will
prevail when the new tax bill becomes effective on
or about March 1, 1944, which will increase the
excise tax on beer from $7 to $8 per barrel while
the import duty on beer manufactured in Mexico and
Canada will remain at $7.75 per barrel. As of
February 15, 1935, the import duty on beer was
established by Presidential Proclamation at 50 cents
per gallon or $15.50 per barrel. By trade agreement
with Mexico - T.D. 50797 dated January 30, 1943 -
this import duty was reduced to 25 cents per gallon
or $7.75 per barrel. Imported beer is subject to
import duty only and is not affected by the excise
tax. # # We submit that unless this inequity be
corrected not only will the domestic brewing
industry be penalized and be discriminated against
in favor of brewing companies operating in foreign
countries, but that the very purpose of increasing
the Federal excise tax on beer - providing additional
revenue for the war effort - will be defeated.
Regraded Unclassified
116
- 12 -
Mrs. Mary L. T. Tufts, New York, N. Y. October 25,
1943, I wrote as per the attached copy to the
Collector of Internal Revenue for New York City,
and asked how I should treat from a tax standpoint
some Japanese bonds which I have owned for
several years. To date no reply has reached me,
and while I realize of course that the Revenue
Office must be very busy, I am greatly worried since
apparently any action must be taken in the next two
or three weeks. # I feel sure that in ruling
that enemy bonds should be held worthless as of the
date of Declaration of War, it was not your intention
to impose any such injustice as would result in my
case if the entire loss is applied to 1941. It will
be greatly appreciated if you will kindly tell me
how the matter should be handled from a tax stand-
point in the existing circumstances. It is obvious
that I need to know promptly in order to avoid being
too late with any action taken.
Regraded Unclassified
117
AIRGRAM
Despatched:
FROM:
Cairo Legation
February 18, 1944
Rec'd. Feb. 26 - 5 p.m.
Secretary of State
Washington.
A-84, February 18, 1944, 11 a.m.
With reference to the Department's Circular Mr-
gram of January 26, 1944, 7 p.m. I have the honor to
report, as directed in the fourth paragraph thereof,
on the situation existing in Egypt in regard to the
assistance given by this country in the rescue of
Jews and other persecuted minorities from the dangers
of Hitlerism.
(a) Extent to which refugees are permitted
to enter Egypt.
In my telegrams 1229 of July 13, 1942 and 1283
of July 19, 1942, 8 p.m. and in dispatch 489 of July
17, 1942, there was reported and set forth a military
order issued by Nahas Pasha, in his capacity as mili-
tary governor, regarding the entrance and sojourn of
refugees in Egypt. of which the principal purport was
the temporary character of admissions contemplated,
the restriction of movement and abstention from gain-
ful employment of any refugees admitted and their
evacuation from Egypt when the conditions which had
caused them to leave their places of habitual resi-
dence had been cleared away. In any case their stay
should not last beyond the duration of the war.
Up to the present the Government of Egypt has
adopted a benevolent attitude towards the refugee
problem
Regraded Unclassified
118
-2-Cairo/A-84
problem in the Middle East by permitting the entry of
various groups of Poles, Greeks and Yugoslave, sponsored
by the Middle East Relief and Refugee Administration. It
at one time also agreed to permit the entry of several
thousand Greek children whose evacuation from Greece
was, however, blocked by the Italian Government and whom
it has not been possible subsequently to rescue. In all
these groups there were Jewish members.
The Government has made clear, nevertheless, that
the sojourn of the refugees in Egypt was to be"in
transit" although it has not raised the question of de-
fining the period meant by this term. It has also not
officially engaged the resources of Egypt beyond allott-
ing camp sites; the care and feeding of the refugees
having been taken care of by the M.E.R.R.A. mentioned
above. Further, in view of the critical food supply
situation in Egypt during the past two years, the Egypt-
ian Government has not allowed the Refugee organization
to purchase foodstuffs in the local market, these
supplies having been procured by adding to Army indents.
(b) Extent to which Egypt encourages and
cooperates in entry of refugees.
In my dispatch 1519 of January 11, 1944, the adher-
ence of Egypt to the Intergovernmental Committee for
Refugees was discussed on the basis of a note addressed
by the Prime Minister to the Council which recited the
difficulties which Egypt would encounter in doing any
effective work in this regard, although it showed an in-
terest on her part in the problem.
It should be borne in mind that Egypt, geographical-
ly, is not contignous with any territory where there
are minorities in danger from Hitler. A transportation
problem exists to bring any rescued peoples to Egypt and
they cannot slip across the border in small inconspicuous
groups. Not only that, but the habitable portion of
Egypt is limited and overcrowded and famine and malaria
are raging in Upper Egypt at this moment, the Government
having only recently considered the allocation of large
funds for relief of its own inhabitants whose plight is
incredibly miserable in the affected districts.
As
Regraded Unclassified
119
-3-
Cairo/A-84
As contrasted with the xenophobia of certain half
educated young intellectuals of Egypt whose employment
is always a current problem, the governors of the
country have shown comprehension of the pitiable
plight of uprooted minorities but their cooperation
has been passive rather than active. While, as stated,
there have been Jews among the groups which have found
a temporary shelter in Egypt, it is doubtful whether
the Egyptian government could, in view of present eco-
nomic, demographic and political considerations, par-
ticularly its commitments to other Arabs or Moslem States
of the Near East, undertake to permit the entry of large
groups of stateless Jews, as such, without the cover of
being introduced as part of groups of determined nation-
ality.
Add to the above existent jealousy of foreigners
and the latest antisemitiem, due to the unsettled
problem of Palestine which has continuously come to the
fore as the principal obstacle to a union of the Arab
States, and it becomes obvious that any Egyptian poli-
tician expecting to remain in political life could not
risk advocting openly the admission of large or even
moderate numbers of refugees to this country, or the
allocation of funds badly needed at home.
(c) Extent to which refugees are not
permitted to enter
To confirm the present attitude of Egypt regarding
new refugees, there is quoted in full below, the question
of Senator Abmed Ramzy in the Senate on February 15 and
the answer of Fouag Serag Ed Dine Pasha, Under Secretary
for Foreign Affairs:
"Senator Abmed Ramzy: Certain papers on
February 4th last, published & Reuter Dispatch
from London announcing that Egypt, Czechosol-
vakia, India, Luxembourg, Poland, South Africa
and the U.R.S.S. had accepted the invitation
of the Refuges Executive Committee of London
to participate in its task.
"Has Egypt accepted or does it expect to
accept refugees on her soil when the country
complains of its unceasing increase of popula-
tion and life is becoming more and more ex-
pensive?
"If
Regraded Unclassified
120
Cairo/A-84
"If this news is correct what will be
the number of refugees the Egyptian Government
will accept?
"Will these refugees be admitted before
the publication of the law on immigration?
"H. 2. Found Serag Ed Dine Pasha: In con-
formity with the policy followed by this Mini-
stry, and which is directed towards affirming
the international position of Egypt and its
participation in the various realms of world
activity, the Council of Ministers, on December
last, approved the adherence of Egypt to
the International Committee formed at London to
study the problem of refugees, at the same time
maintaining as such the policy of the Egyptian
Government as its representative had defined it
before the League of Nations in 1938 to wit: that
our country cannot receive new refugees.
"This policy was communicated to the presi-
dent of the Committee on January 4th last. There
was annexed thereto, on the other hand and as &
measure of precaution, the text of the declara-
tion made by the delegate of Egypt to the League
of Nations 1938 and in which it was clearly and
precisely stated that Egypt could not be a refuge
for emigrants and that it declared it would not
accept new refugees.
"Therefore, it appears that the government
has not accepted and does not intend to accept
any new refugees in addition to those already
received. For this reason the other questions
of the Senator do not require an answer."
In view of the foregoing it is not believed that
the Egyptian Government can be successfully induced to
go beyond the attitude which they have manifested, that
of tacitly ignoring the presence of present sponsored
refugee groups BO long as they do not become a charge
on Egypt's monetary or food resources. Indeed to
raise the question of more admissions in a pressing
manner might even bring about a revision of their
present passive benevolence.
Mr.
Regraded Unclassified
121
-5- Cairo/A-84
Mr. Ira À. Hirschmann of the War Refugee Board
recently passed through Cairo and although part of his
stay in this region was taken up by & visit to Pales-
tine, he indicated that his conclusions were approxi-
mately the same as those set forth above. Assisted by
the Legation, he has now left for Turkey, where, in
his belief, the principal efforts towards rescue of
the endangered minorities should be made as Turkey's
contiguous frontier with the Balkans States permits a
type of work not possible in Egypt.
The Middle East Relief and Refugee Administration
has been requested to prepare a report giving details
of the refugees under its charge and the information
will be forwarded when received. In the meantime the
Legation is approaching the Egyptian Government in the
sense of the Department's airgram under reference.
Kirk
HAD/lw
Regraded Unclassified
122
EMBASSY OF THE
UNITED STATES OF AMERICA
Mexico, February 18, 1944.
No. 16011
Subject: Refugee Relief in Mexico
The Honorable
The Secretary of State,
Washington, D.C.
Sir:
Reference is made to the Embassy's despatch num-
ber 15781 of February 8, 1944, being n preliminary re-
port as to the possible Mexican attitude with respect
to the affording of relief to European refugees, in
accordance with the program envisaged by the President
in establishing the War Refugee Board.
This entire question was informally discussed
with Senor Manuel Tello, Oficial Mayor of the Ministry
for Foreign Affairs, at which time a personal memoran-
dum was left with him, explaining the duties of the
Board and inquiring as to the extent to which Mexico
might be prepared to cooperate in giving haven or ren-
dering other assistance to European refugees at this
time and in the future. Sr. Tello, in turn, took up
the question with the Foreign Minister and he has now
informed an officer of the Embassy that while Mexico
is entirely in sympathy with the proposed activities
of the Har Refugee Board, it nevertheless cannot take
any active part in the transportation of refugees to
this Continent, nor can it assume any responsibility
for the maintenance and care of such refugees in Mexico,
He stated, in this connection, that, as is well known
to the Embassy, Mexico is affording hospitality to
large groups of Spanish refugees, as well as to large
numbers of other refugees from Europe, many of them of
the Jewish faith, in addition to cooperating in the
settlement in Leon, Guanajuato, of approximately 1500
Polish refugees.
Sr. Tello likewise remarked that Mexico was
stinting itself in order to make its financial contri-
bution to UNRRA, despite the fact that large sections
of the Mexican population were themselves in an im-
poverished condition.
So far as the question of Mexican hospitality to
Jews is concerned, it may be stated that there is no
particular problem here. As has been pointed out
previously, Mexico has afforded refuge to large numbers
of refugees without question as to their religion. In-
cluded among these refugees are Jews from many countries
of Europe who have settled into Mexican life and are
active in small business. Likewise there is & large
number of Spanish, Italian and Levantine Jews in Mexico,
Regraded Unclassified
123
- 2 -
many of whom are intimately identified with the
Mexican picture and are active and prominent in
business, banking and industrial circles. Practi-
cally all of these individuals, many of whom are in
the second and third generation of life in Mexico,
have become and are considered as Mexicans.
Reports from the several consular officers in
Mexico indicate that the Jewish families settled in
their districts suffer no discrimination and in fact
are active and, in some cases, prominent in local
business circles.
I may add that during the course of an interview,
last October, which Dr. Padilla, the Foreign Minister,
granted to Mr. Jacob Landau, the Managing Director of
the Jewish Telegraphic Agency, he stated that Mexico
had never discriminated against individuals of the
Jewish faith but has accorded them the same hospitality
accorded to all people desirous of living peaceably
in Mexico and in accordance with its laws. He added
that there were many Jews in Mexico and that they had
been helpful in the national economy.
Respectfully yours,
George S. Messersmith.
SEOD:LC
In duplicate to the Department - original in ozalid
848 War Refugee Board
Regraded Unclassified
124
AIRGRAM
SYCRET
FROM
Baghdad
DATED
February 18, 1944.
RECEIVED
leb. 8:p.m.
Secretary of State
Washington.
A-8, February 18, noon.
Department's circular Mirgram of January 26,
1944, 7 2. III.
1. Sn far as the Legation has been uple in uscer-
tain n° Jewich or ther refugees from Nazi persecu-
tion desire or have desired to find a refuge or to
establish a domicile in this country. The only
refugee problem which has faced Iraq, therefore,
has been that of refugees in transit. The Iraqi
Government has in general pursued a policy of por-
mitting these refugees on pass through the country
unless they happened to be Jews traveling to Inlestine
to settle there. Alth-ugh the Legation does not in to
that there are any Jews awaiting permission :- 02008
Iraq to Palestine it is possible that there ero
same at present in Iron.
2. It will be recalled that my predecessor on
October 20, 1942, under instructi no from the Depart-
ment discussed this matter with the Print Minister
who explained to him why the Iraçi Deverment gould
not permit Jews to criss Tral in order to settle in
Palestino (see Legation's telegram no. 246 of novober
90, 1942, 9 B. m.) and that the Counselar RI the
Pritish Embassy under instructions from his Covern-
mént also mentioned the matter several (Eys lator
to the Prime Minister and received a rather sharp
rebuff (see Legation's telegram no. 248 of "ctober
23, 1942, 5 P. m.).
3. The considerations which prompt the Iraqi Gave n-
ment to refuse visas to Jewish refugees bound for
Palestine appear to be based on nati nel policies
of 8n vital & nature that in my opinion no approaches
of the character suggested in the penultimate paragraph
of the airgram under reference ould ulter them.
The main objective of Iraqi foreign policy is in
promote/
Regraded Unclassified
125
&
A-8, Baghdad, February 18, noon.
promote closer Arab cooperation with e view to the
formation in the not distant future of some kind of
a union of Arab states in this area. The Iraqi Govern-
ment is convinced that if the Zi-nists are able to
achieve their goal of setting up E notional Jewish
State in Palestine this objective cannot be accom-
plished and that the success of the Zionist program
would mean the non-realization of Arab hopes for
the future. They also believe that the sottlement
of additional Jews in Palestine would serve to
strengthen the Zionist cause and to weaken their own.
They take the view that the Zionists are taking
advantage of the sympathy which Nazi atracity has
aroused for the Jews in order to introduce grent
numbers of Jews into Palestine and thus to ensure
the success of their program, st a time when the
Arabs, because of wartime limitations upon comuni-
catirns ind transportation are not able fully to
present their side of the case. It is believed that
unless backed by foreign armed forces it sould be
almost impossible for any Government to survive
in Iraq just new which could take steps to facili-
tate the travel of Jewish settlers to Palestine,
and it would be difficult to convince 100 1 Arabs
that Jewish refugees bound for Palestine will not
eventually settle there.
4. Increased Zionist activity in the United States
has served to strengthen suspicions which the enemy
is propagating by every means available to it that
the American Government has anne kind of fun under-
standing with the Zionists and intends following the
the termination of the war to support the Zionist
program. Nazi propagandists in particular have
exploited to the full certain atatements made recently
by preminent American p-liticians in favor of the
Zionists and as B result the sensitiveness of the
Iraqi Government with regard to Americ n suggest
of Zionism has grown (see my telegram no. 21 of
February 14, 7 P. m., 1944.).
5. Since the only refuges problem which might
become active here is that of the transit of Jewish
refugees to Palestine, and since any approach which
I might make with regard to that problem is not
likely to alter the attitude of the Iraqi Government
towards it, I shall not make the approach suggested
unless I receive further instructions from the Depart-
ment. I em convinced that such en approach by me
would be of help to no one except to the enemy.
The/
Regraded Unclassified
126
-3-
A-8, Baghdad, February 18, noon.
The Legation will continue to observe any develop-
monts which might take place in the situation with
regard to refugees and will not hesitate to approach
the Iraçi Government in case it would appear that by
80 doing it could assist any of them. The Legation
will also keep the Department informed of develop-
ments or of cases of refugees who appear to be in
need of our aid.
Henderson
LWH/deb
Regraded Unclassified
127
PARAPHRASE OF TELEGRAM SENT
your
Secretary of State, Washington
TO:
AMERICAN EMBASSY Madrid
GATED:
February 18, 1944, midnight
NUMBER: 463
CONFIDENTIAL
The foregoing is for the Ambassador's attention.
Please refer to the Department's telegram of
January 25, 1944 no. 207 with reference to War Refugee
Board.
The Board has resolved, in formulating & program of
immediate action, that an attempt to facilitate the
evacuation from occupied areas to Spain of as many Jewish
refugees and others as possible is one of the projects
which should be pushed with the greatest of speed. It
is understood by the Board that French refugee movement
is well organized and functioning and that some thousands
have already been transferred to North Africa. Further-
more the Board understands that arrangements are being
made at the present time to transfer to North Africa
stateless refugees and those lacking protection of their
own government.
It is felt by the Board that the most feasible way
of accomplishing this extremely urgent task is: (a)
to remove refugees now in Spain from there as rapidly as
possible, thus making room for more and (b) to obtain
from
Regraded Unclassified
128
- 2 -
from the Government of Spain the greatest possible relaxa-
tion of the border and other controls and other action
designed to encourage the entry into Spain of refugees.
The Board has agreed upon the following concrete
proposals with the object of increasing the movement of
refugees from occupied areas through Spain to refuge
elsewhere. (1) A substantial number of refugees now in
Spain can be moved to a camp in North Africa which is
now established and which is ready to receive refugees
and the transfer should be facilitated. (2) In order to
care for new refugees who will arrive in the future,
especially stateless refugees and those lacking the pro-
tection of their government, and to effect their removal
from Spain, if necessary on an involuntary basis, the
government of Spain should be requested to maintain reception
camps in which future arrivals may remain until they are
transferred to North Africa. As a basis for obtaining the
necessary action by the Government of Spain, they should
be informed (a) that necessary arrangements will be made by
War Refugee Board to finance the maintenance and support
of such stateless and unprotected refugees as arrive in
Spain in accordance with these arrangements until they
can be removed to North Africa and (b) that responsibility
for arranging for the transfer of stateless and unprotected
refugees
Regraded Unclassified
129
- 3 -
refugees to North Africa 8.8 rapidly as possible will
be assumed by War Refugee Board, The Government of
Spain may be reminded in this connection of the recent
evacuation of refugees to Palestine and of arrangements
being made at the present time for the removal of state-
less refugees to the North African camp which has already
been established. (3) You should request the Spanish
Government in the strongest manner possible to take
effective steps to encourage the entry into Spain of
more refugees. Besides relaxation of border control and
the taking of other actions, it will be extremely help-
ful if steps will be taken by the Government of Spain
to fecilitate the spread of information to the occupied
areas that Spain is ready to grant asylum to refugees
until they are removed to another country.
The commitments given above are not intended in any
way to replace the French Committee of National Libera-
tion's activities or responsibilities with respect to
the flow through Spain of French refugees.
We anxiously desire to support the Board's program
given above and it is requested that you approach the
Spanish Government at the earliest possible moment with
a view to obtaining their agreement to the plan. It
is requested that you report as soon as possible regarding
practical
Regraded Unclassified
130
- 4 -
practical measures that would be necessary, including
the requirements of funds, to put the proposed plan
into operation in Spain.
Of course it will be appreciated by you if these
negotiations with Spain are on an entirely different
level than the political and economic negotiations
being carried on with that Government. This Government
is simply addressing to the Spanish Government a
humanitarian appeal rather than a request to take certain
action favorable to us at a sacrifice to them, Therefore
we desire that the proposed negotiations with respect
to refugees should be carried rapidly and effectively
to 8 conclusion without becoming entangled in other
pending problems being discussed with the Spanish.
Furthermore it is important to remember that it
is this Government's policy to move to Camp Lyautey
promptly as many stateless and unprotected refugees as
facilities allow. Consequently you should make every
attempt to encourage the voluntary migration to the
camp of the greatest possible number of eligible persons
in Spain at the present time, Of course this evacuation
operation should be executed as rapidly as possible.
The progress being made in this matter should be
reported to the Department as soon as possible.
STETTINIUS
Acting
Regraded Unclassified
131
COPY.
FOREIGN OFFICE,
(Refugee Department),
3, Cleveland Row,
No. W 1586/134/48.
St,Janes's,
S.W.1.
18th February, 1944,
Dear Bucknell,
Your letter of 29th January about the Swise
application to Germany at the request of the Inter-
governmental Committee to allow Jewish children to
leave France.
Before replying I thought it best to explain
our position at greater length to Coville, and I
should now like to confirm this as follows:-
Our understanding is that the Swiss Government
has been requested to try to obtain exit permits for
Jewish children from France, If these are given the
children will receive hospitality in the United
States (5,000), in Canada and elsewhere, and there
will be negotiations with the Spanish and Portuguese
Governments to get the children in question through
those countries in order that they may proceed over-
seas. The Swies Government will be asked to grant
temporary asylum to some of the children, but it
seems more practicable, in view of the number of visas
offered elsewhere, that the children should be
directed through Spain and Portugal.
So far the Swiss Government has not obtained any
promise of exit permits. They have also made, so far
as I am aware, no representations to the Inter-
governmental Committee or to us regarding conditions
on which they would receive children in their own
territory. The question of the children going
eventually to Palestine is therefore entirely hypo-
thetical, and the feeling of our authorities is that
in these circumstances it would be undesirable to
freeze any substantial number of certificates for
cases which may never arise, as this would reduce the
stock available for the regular allocations which are
made in agreement with the Jewish Agency. Of course,
if the German Government agreed to give exit permits
and if asylum offered in countries other than
Switzerland proved insufficient or it proved 1m-
practicable to transport the children to those
Xr. Howard Bucknell, Jr.,
United States Embassy,
1, Grosvenor Square,
W.1.
Regraded Unclassified
132
-2-
countries, and if the Swiss Government then
agreed to take a certain number of children
themselves only on the condition that the
children in question were received elsewhere
at the end of the war, it would be open to the
Swiss Government then to so to the Intergovernmental
Committee, which would have the duty of seeing how
far the Swiss Government's condition could be met,
In this concrete case, the British Government could
be approached in respect of Palestine or other
territories for which it is responsible in exactly
the same way as other members of the Committee
could be approached, The mere existence of the
Intergovernmental Committee and the fact that
Switzerland is a member of it would appear to be
a sufficient assurance to the Swiss Government that
they will not have to shoulder the present or future
burden of refugees in Swiss territory with no
prospect of international assistance, but the
assurances your Government and mine have given the
Swiss Government of sympathetic consideration over
any obstacles to a continuance of the Swiss Govern-
ment's humanitarian action surely makes all
apprehensions rather unreal.
In the light of the above, I hope you will
agree that our reluctance to freeze Palestine permits
in a purely hypothetical case where no concrete
action or objection has been raised by the Swiss
Government should, if properly understood, prove
no hindrance to the efforts which are now being
made by the Intergovernmental Committee and the
Swiss Government to persuade the German Authorities
to allow children to depart, and I should be grateful
if this explanation could be conveyed to the State
Department. We are very anxious that the balance
of immigration permissible into Palestine should be
used as far as possible for refugees from Nazi
terror; our concern is to secure that it is used to
the best advantage and that permits should not be
frozen for people who may not be able to use them.
Yours sincerely,
A.W.G.Randall
P.S. Since writing the above I have heard that the Swiss
Government have undertaken to receive 1500 children
from France if they can reach the frontier, and no
conditions 80 far as I know have been attached to
this offer.
Regraded Unclassified
133
COPY
February 18, 1944
TO:
Mr. Stettinius
FROM: Mr. Pehle
Attention: Mr. Warren
Attached hereto is a proposed cable from
the War Refugee Board to Ambassador Steinhardt and
Mr. Hirschman in Ankara requesting confirmation of
a press report that Turkey is prepared to cooperate
in abeleting Jewish refugees to leave the Balkans.
It will be appreciated if this cable is
dispatched at once.
(signed) J. W. Pehle
Enclosure.
Regraded Unclassified
134
COPY
CABLE
CABLE TO AMBASSADOR STEINHARDT IN ankara.
TO STEINHARDT AND HIRSCHMAN FROM THE WAR REFUGEE BOARD.
It is reported here in the papers that a high government
official in Turkey told the Associated Press on February 13
that Turkey was willing to cooperate with the Palestine
Commission and Allied diplomats in assisting Jewish
refugees to leave the Balkans. We would appreciate
immediate confirmation of this report. Please give us
full information at once on the present position of the
Turkish Government on this matter.
The War Refugee Board is desirous of making public
the cooperative attitude of neutral countries on this
matter, and unless you perceive some objection, we would
like to be in a position to publicize at once the attitude
of Turkey.
It 1s extremely important that we be kept currently
informed of all developments in Turkey relating to the
activities of the Board. We have received numerous inquiries
from private agencies concerning the above mentioned press
report and have been awaiting advice from you as to its
accuracy.
Regraded Unclassified
135
FEB 22 1944
BE-220
This telegram must be
Ankara
paraphrased before being
communicated to anyone
Dated February 18, 1944
other than a Governmental
agency. (BR)
Rec'd 1:42 a.m., 20th
Secretary of State
Washington
286, February 18, 8 p.m.
FOR LEAVITT OF AMERICAN JEWISH JOINT DISTRIBUTION
COMMITTEE FROM IRA HIRSCHMANN.
Referring to your cable of February 18 regarding
boat to evacuate Jewish refugees from Constanza I
have been working with Barlas on this situation.
Ambassador Steinhardt and I have sent detailed message
to John Pehle War Refugee Board with recommendations
for action on this and other related matters.
STEINHARDT
KEC
Regraded Unclassified
136
NOT TO BE RE-TRANSMITTED
COPY NO.
12
BRITISH MOST SECRET
U.S. SECRET
OPTEL No, 56
Information received up to 10 a.m., 18th
February, 1944,
1. NAVAL
MEDITERRANEAN. At ANZIO on 16th unloading
was slowed down by increased and more accurate enemy shell
fire but 3,586 tons were discharged.
ATLANTIC. 15th. U-boat southwest of azores
probably sunk by aircraft from a U.S. Escort Carrier,
2, MILITARY
ITALY. To noon 17th. On main front heavy
inconclusive fighting took place N.W. of CASSINO, In
ANZIO bridgehead a strong enemy attack made slight gains
on the ANZIO-CAMPOLEONE Road.
RUSSIA, 17th. Russians completed annihilation
of ten German Divisions encircled in KURSUN area and made
further advances S.W. and south of LUGA.
BURMA. 16th, In ARAKAN steady progress was
made on all fronts. In NGAKYEDAUK Pass area the Japanese
maintained their position against our attack from the
southwest, but lost some features east of the Pass. The
area of Japanese penetration was reduced and heavy casual-
ties were inflicted on the Japanese on our southward facing
front.
3. AIR OPERATIONS
ITALY. 15th. Fighters and fighter bombers
flew 365 sorties over battle area. Four enemy fighters
destroyed.
16th. About 300 tons dropped on railway
targets north of ROME and at CAMPOLEONE. 170 light and
fighter bombers attacked enemy targets in hattle area.
TREASURY DEPARTMENT
Regraded Unclassified
137
February 19, 1944
Regraded Unclassified
Meeting in Mr. Bell's Office
February 19, 1944
20:30 A.M.
Presents Ovneral Clay of Her Department
Mesore. cellado, Hiss, Stanton, Meduire of State
Mesurs. Bell, White and Friedman of Treasury
subjects China
Meeting was called at the request of General Clay. General Clay indicated
that be had requested the meeting to bring the Treasury and State Departments
up-to-date on discussions 10 the Yes Department. lie indicated that & -
due had been presented by General Senervell to the Secretary of w and to the
Joint Chiefs of Staff indicating that the Any had three alternatives with regard
to the problem of 110 present program in China.
a. To have a menange, sent from the President to the Concralissine 10-
dieating that unless the Chinese are willing to make some accepted
financial arrangements, the Army would reduce its program is ddm.
be To continue the present program on the basis of the best rate
obtainshle.
8. 90 continue the present level of expenditures at the best rate
obtainable. This presumbly was what the state Department would
consider most proferable.
The want - to support strongly the first alternative and had
appended to 16 a possible ressage from the President to the Osneralissius. The
resorandes indicated that, if the measage was sent, the Army would give the
Chinese two weeks to reply before they began to implement their decision.
The Omeral then read the suggested ressage to the Provident which -
along the lines of telling the Chinese that willose better financial arrenge-
rente were nade the President felt that 1% would be necessary for the United
tates to returned: its wilitary activities in China and. change the present
contemplated program and stretegy for that area.
Mr. white indicated that he felt that, if it was decided to send such a
message to the Tresident, there should be greater exphasis - lack of occura-
tion rether then on financial considerations. General Clay indicated agreement
with this and said that, of course, the measage could be changed, if and when
the Joint Chiefs of staff decided that this alternative was desirable.
General Clay then read a letter from General Armeld en the matter. (No
profesed his reading with the reasrk that of course General Amald had the
greatest special interest in mistaining this project.) General Arneld's
letter conned to indicate a desire to continue the project but with the
138
Division of Nenetary
Research
- 2 -
Regraded Unclassified
suggestion that the necessary currency should be obtained by the use of
serican dollars in the black market.
General Clay then indicated that, at the present price level, as be-
tween a rate of 20 to 1 and 100 to 1, the continued we of 20 to 1 would
give to Chinsee & presium during the next year of more than $1 billion.
This was based on anticipated expenditures at the present price leval of
about CN82 1/2 billion per month. This figure night well, of course, in-
crease as prices ress. Be indicated, however, that the current expendi-
tures were not at this level because practically no work was being done
on the air fields.
Ceneral Clay indicated that the resent events in the Pacific night
have greatly altered the strategic picture. Thus, with the recent opera-
tions in the Marshalls and the attack on Truk it udght be that the anticipated
attack on occupied China for the purpose of obtaining a Chinese constal part
had been advanced 4 number of nonths, in which case the importance of having
large air fields to conduct similtaneous air bemberdent from the interier
of China right be more important than as of a Iew weeks age,
Mr. White indicated strengly that the question of speedi 8 up operations,
and the question of expenditures were not commensurate; that, for example, it
was not possible to massure in financial terms the value of six months of
speeding up of operations and that this point nust always be kept in mind when
making & decision on this problem.
General Clay then indicated that the Any had a cable February 18 from
Chungling which reised certain specific questions which needed reply and which
be would like to discuss with the groups The eghle requested
4, That instructions be given immediately that the U.S. Government
rejects the proposal of the Chinese Government to give, in effect,
30 to 1.
be That the United States place immediately 125 willion to the account
of the Chinese Covernment einee the Chinsee had already pet up the
CM02 billion and these Ivade had been drem one Kung had Laken the
position that the currency was being given at a rate of 20 to 1 but
this position had been rejected by General Hearn.
de Arrangements to be mate by the my for conti used shipments of
Chinsee currency into
de Destriem regarding emership of air fields and pipe lines and
whether U.S. Government would want to ask for a used E me
before giving up their claims,
139
livision of Monetary
Research
- 3 -
It was agreed that no answer should be given to (d) but that ensure should
be rade to (a), (b) and (e). It ⑉ desided that State Department would
send a cable indicating the refusal of this Government to accept a rate of
30 to 1 and also having the Ambassador inform Kung sinultaneously that he,
the Ambassader, understood that the Army had made arrangements for having
$25 million placed in the account of the Chinese Government. It - agreed
that the shorter the neasage from State the better. It was decided that
the cable should also contain an instruction to the Ambassador that the
problem was being given further study here, taking itste consideration all
related natters and that further instructions would be sent one
It was also decided that the Any would send a similar cable to
General Hearn in which General Rears would be informed of the action to be
taken by the Anbansader and in which he would be instructed to inform the
Chinese or the placing of 025 million to the account of the Chinese, making
it clear that this action did not imply in any way acceptance of the Chinese
position. The cable would also inform Ceneral Hearn that arrangements were
being made to continue shipments of currency into China,
Some discussion was then held regarding the econemic feasibility of the
Vap Department's air field projects, in which State Department representatives
indicated that they felt it was not commically feasible. Yes and Treasury
representatives indicated that it was their feeling that there was no question
of economic fearibility in building these projects, but rather, what was ebiefly
involved as indicated - may previous ecossiens, Was the Chinese desire to get
as each foreign exchange as possible from the building of these bases.
meral Clay said that he would report back the attitude of the Jeins
Chiefs of Staff and the Var Department on this matter, indicating that -
discussing this matter with Secretary stinson this morning, the Fecretary of
If had said that a very fire attitude was desirable, State Department
representatives indiented that they would get out their cable today.
I. the Frieduan
ISFarl 2/19/44
Regraded Unclassified
140
TELEGRAM SENT
RP
February 19, 1944
This telegram must be
paraphased before being
4 p.m.
sommunicated to anyone
other than a Government
agency. (50=00)
DEPARTMENT OF STATE
DIVISION OF
AMENBASSY,
FEB 1844
COMMUNICATIONS
CHUNGKING.
AND RECORDS
the
249
must
FOR ADLER FROM THE SECRETARY OF THE TREASURY
It was reported that in a conversation with Ambassador
Gauss and others with Dr. Kung. Dr. Kung indicated that
the Chinese Government through expenditures of CN$10
billion for United States military forces had repaid the
$500 million United States credit extended to China
(your 236, February 4).
Unless you or Ambassador lause perceive objections,
lease inform Dr. Kung that the United States Government
regards the $500 million credit as an outstanding obliga-
tion of the Chinese Government and that fulfillment of this
obligation is governed solely by Article II of the March 21,
1942 Agreement. We do not wish to leave unchallenged the
assertion of Dr. Kung that the Chinese Government has repaid
this credit.
Please inform Treasury if the Ambassador or yourself
feel that such action should not be taken including the
reasons therefor and take no further action until 60
instructed.
STETTINIUS
FMA:JSH:ja 2/19/46
FE
(Acting)
(JSH)
Regraded Unclassified
141
EXECUTIVE OFFICE OF THE PRESIDENT
WAR REFUGEE BOARD
WASHINGTON 25, D. C.
OFFICE OF THE
February 19, 1944
EXECUTIVE DIRECTOR
MEMORANDUM FOR THE SECRETARY:
Pursuant to your request I am attaching hereto a.
brief memorandum on the developments since Sunday, Febru-
ary 13.
I an also attaching a declaration which we propose that
the President issue, dealing specifically with the Nazi ex-
termination of the Jews. At this stage of the war, if we
can convince the people in Germany and particularly in the
satellite countries, of the seriousness with which we view
this matter, we have a chance of saving many of these people
from death. It would be our recommendation that the Presi-
dent issue this declaration immediately and we would then
request the other members of the United Nations to issue
similar declarations. It is our considered judgment that
the issuance of this declaration by the President, followed
by an intensive campaign designed to make the people in
German-controlled Europe understand its meaning, may result
in the saving of untold lives.
If you are in agreement with this declaration, and with
our view that it should be issued by the President at once
without prior consultation with other members of the United
Nations, I would appreciate it if you would telegraph me
immediately to that effect. I will then attempt to get the
approval of Stettinius (Hull will be away for about two
more weeks) and thereafter the clearance of the War Depart-
ment. The declaration would then be submitted to the Presi-
dent over the signatures of the three Board members or their
alternates.
Justine
Regraded Unclassified
142
Report of Accomplishments for Week of
February 14-19, 1944
1. Declaration on the Nazi Atrocities to the Jews,
Drafts of a declaration to be issued by the President and of
a memorandum to the President have been prepared.
2. Cooperation with other Governments.
(a) British
1. A cable was received from Winant concerning his con-
versations with Eden who affirmed the British Government's
"earnest desire and practical intention of associating them-
selves with the United States Government and with the War
Refugee Board in particular, in endeavoring to carry out the
aims which the President has set before it." Eden also said
that the British do not consider it necessary to set up any
additional organization.
2. A cable was received from London quoting the text of a
very strong editorial in the Manchester Guardian praising the
action of the President in establishing the War Refugee Board
and urging the British to take similar action.
3. Palestine certificates. The Emergency Committee to
Save the Jews of Europe has asked the British for allocation
of 10,000 Palestine immigration certificates by their con-
suls in Turkey and Spain. This matter was discussed with
Stettinius who in turn discussed it with Halifax. Arrange-
ments were made for Mr. Hayter of the British Embassy to
discuss the proposal with members of the War Refugee Board
staff.
(b) The Neutrals
1. Sweden.
A long report was received from our Minister in
Stockholm setting forth what the Swedish Government has
been doing with respect to refugees from Denmark, Norway,
Estonia, etc. It is apparent that the rescue of thousands
of refugees from these areas was facilitated by the liberal
attitude of the Swedish Government and its willingness to
receive the refugees.
Regraded Unclassified
143
-2-
2. Portugal.
A report was received from Minister Norweb that the
Portuguese Foreign Office has signified its agreement
and sympathy with our policy on refugees and will con-
tinue its liberal attitude toward refugees along broad
humanitarian lines.
3. Spain.
No report has yet been received from Minister Hayes.
We have finally cleared with State our cable to Hayes on
the Spanish refugee situation. The cable urges that the
appeal for Spanish cooperation be based on humanitarian
grounds, not to be connected with the pending economic
negotiations between Spain and the United States.
4. Turkey.
The report on the Turkish reaction to the Board's pro-
gram which was requested in the cable of January 25th has
not yet been received from Steinhardt.
5. Switzerland.
A cable has been received from Harrison reporting that
he has notified the Swiss Government of this Government's
new action on the refugee question. A further report on
the Swiss reaction is expected.
6. Latin American countries.
Reports have been received from our Missions in
Honduras, Venezuela and Paraguay. Venezuela and Paraguay
have indicated their willingness to cooperate with this
Government. The report from Honduras indicates that the
entrance of Jewish refugees into Honduras is not encour-
aged. The report suggests that it would be embarrassing
to ask the Honduran Government to cooperate by admitting
additional refugees into that country if the United States
does not expect to do likewise.
3. Propaganda.
A conference was held with Elmer Davis in order to arrange for
the adequate handling of War Refugee Board material for dis-
semination abroad by O.W.I. Davis arranged for us to discuss
Regraded Unclassified
144
-3-
the matter on Monday, February 21st, with his regional chiefs.
Davis didn't seem too excited about this matter.
4. Special Projects.
(a) Evacuation of Jews from Transnistria.
A letter was sent to Stettinius with a proposed cable
to Steinhardt asking him to approach the Turkish Government
at once and to obtain from them effective measures to en-
courage the entry of more refugees into Turkey. In addition,
the serious situation of the Jews in Transnistria was pointed
out to Steinhardt and he was requested to do everything possible
to aid in the development and execution of measures to evacuate
these people to Turkey. Since some refugees have already es-
caped from Transnistria into Rumania, Steinhardt was also re-
quested to make efforts to increase the flow of refugees from
Rumania to Turkey. Cases hivy dispatibed lite
(b) Jews in Slovakia.
communes in cance (copy actord) ou D kipping
Several private organizations brought to our attention
recent reports from Sweden indicating that the Slovakian Govern-
ment has undertaken the registration of all Jews in Slovekia as
a prelude to their deportation. It is said that there are about
15,000 Jews still remaining in Slovakia and that their deporta-
tion is being pressed on the Slovakian Government by Germany.
A memorandum was sent to Stettinius suggesting that, since
Dr. Josef Tiso, the President of Slovakia, is B. Roman Catholic
priest, the Vatican might be requested to communicate with
Dr. Tiso to persuade the Slovakians to desist permitting the
deportation of Jews. State has prepared and is now clearing
a very strong letter to the Apostolic Delegate on this matter.
(c) Evacuation of refugees from France into Switzerland.
Further steps were taken to facilitate the operations of
private organizations in this evacuation. Licenses were
issued permitting the International Rescue and Relief Committee
to send $60,000 and the Selfhelp of Emigres from Central Europe,
Inc., $3,000 to Switzerland to be used by their representatives
for relief and evacuation of refugees from France. The Swiss
francs were obtained at the official rate and the remittances
have been made.
(a) Relief of Spanish refugees in France.
The International Rescue and Relief Committee approached
the Board for permission to send $7,500 B. month for the next
Regraded Unclassified
145
-4-
six months for the relief of Spanish republican refugees
presently in concentration camps in Southern France and in
dire need of food. This program was approved and the appro-
priate license has been issued.
(e) Relief of Jewish refugees in the Netherlands.
Some 15,000 Jews still remain in concentration camps in
the Netherlands. Their lives are in danger because of in-
sufficient food. The JDC recently applied for a license to
send $12,000 a month to Portugal for the purchase of food there
for distribution to the Jewish internees in these Dutch concen-
tration camps. After certain delays encountered at FEA were
brought to our attention, we cleared the matter with FEA and
the Dutch Embassy and arranged for the immediate issuance of
the appropriate license.
(f) Relief of Jewish refugees (mainly children) in Rome.
A cable was received from London reporting that, in view
of the JDC's willingness to provide $20,000 immediately for
the relief of these refugees in Rome, the British Minister at
the Vatican had been authorized to spend $20,000 worth of lire
for this purpose. The Foreign Office requested that the JDC
send the British pound equivalent of $20,000 to its Finance
Officer. Arrangements have been made for this remittance to be
made at once. The British Foreign Office requested that there
be no public disclosure of the fact that they are financing
relief in Rome until after Rome is occupied by the Allies,
because of the possibility that they might be subjected "to
all sorts of demands from Allies and from Jewish organizations
to permit remittances to enemy territories of a kind which we
have always felt bound to refuse." They add that "it might be
very difficult for us to explain the special circumstances of
this case." A cable to Tittman is being prepared by us asking
for further details on this problem 80 that in the future
needed remittances may be made direct from the United States.
(g) State Department projects.
Five of our staff have been investigating and studying the
State Department files on refugee matters. It is contemplated
that, as a result of these investigations, many delayed projects
will now get under way.
Regraded Unclassified
146
-5-
5. Designation of Special Attaches on War Refugee problems.
(a) Turkey.
A cable was sent to Ankara designating Ira Hirschman our
special representative in Turkey. He is to receive diplomatic
status. Steinhardt has replied that he approves and is de-
lighted with the appointment. (A cable from Hirschman from
Cairo stated that he expected to arrive in Ankara on Febru-
ary 14th.)
(b) Switzerland.
A cable has been sent to Bern designating Roswell
McClelland of the American Friends Service Committee our
special representative in Switzerland.
(c) Spain.
A cable has been sent to Madrid designating David
Blickenstaff of the American Friends our special representa-
tive in Spain.
6. Liaison with State.
George Warren, refugee expert and head of the President's
Advisory Committee on Political Refugees, for the time being,
has been designated to handle refugee work at State and liaison
with the War Refugee Board. Warren has been earrying the babl
very well and is working out much better than we had expected.
7. Cooperation with Private Agencies.
(a) Private Messages.
We have worked out a procedure for prompt clearance with
Censorship and State of messages to and from the private organi-
zations working on the refugee problem.
(b) Representatives abroad.
We facilitated the departure of Robert Pilpel for Lisbon
where he will work for the JDC on refugee matters. We are
pushing for priorities for two men whom the Emergency Committee
desires to send to Turkey.
(c) Proposals and suggestions from private organizations.
Reports and statements are coming in every day in response
to our letter to 92 organizations asking for specific proposals
and suggestions.
Regraded Unclassified
147
-6-
8. Personnel
Clarence Pickett could not make the necessary arrangements to
come with the Board. We received a letter from Rufus Jones
saying that Pickett could not be made available to us.
James Mann, who was formerly on the Treasury General Counsel's
staff, has been recalled from Argentina by State for work with
the Board. He is expected to arrive in Washington within two
weeks.
9. Morris Ernst dinner.
Morris Ernst gave a dinner on February 17th for Pehle. Among
the commentators and other interested persons present were
Mrs. Ogden Reid, Bruce Bliven, Shaw of Newsweek, George Fielding
Eliot and Quincy Howe, and later Dorothy Thompson. The policies
and programs of the Board received an excellent reception.
Regraded Unclassified
148
DECLARATION by THE PRESIDENT OF THE UNITED STATES
One of the blackest crimes in history, the systematic
Regraded Unclassified
murder of the Jews of Europe, continues unabated.
The Nazi leaders have made it clear that they have not
abandoned the plan to exterminate all the Jevs within their
grasp. More than two million men, vomen and children
already have been put to death solely because they vere
Jews.
The world will not forget the Japanese torture of our
soldiers nor the slaughters of Lidice, Kharkov and Nanking.
The world will not forget the surder of the Jews.
Our youth is fighting and dying on the battlefronts
to make a world in which tyranny and barbarity can not
exist; a world based upon freedom, equality, and justice;
a world in which all persons regardless of race, color or
creed may live in peace, hemor and dignity.
It 18, therefore, fitting that we should again proclain
our determination that none who participate in such acts of
savagery shall go unpunished. The United Nations have made
it clear that they will pursue the guilty and deliver them
up in order that justice be done. Let that warning nov be
repeated so that no one shall fail to hear and understand.
Let it be clearly understood that this applies not only
to the leaders but also to their functionaries and
subordinates, whether they be in Germany or in the satellite
countries. All who knowingly take part in the deportation
of Jews to their death in Poland are equally guilty with
the executioner. All who share the guilt shall share the
punishment.
The Hitlerite forces are committing these crimes against
humanity in the name of the German people. Let every German
and every man everywhere under Busi domination by his actions
demonstrate to the world that in his heart he does not share
these incane desires. Let his hide these victims, help them
to get over the borders, and do what he can to save then from
the Basi hanguan. Let his also keep vatch, and record the
evidence that can one day noon be used to convict the guilty
and acquit the innecent.
In the meantine, and until the victory that is nov
assured is won, ve shall persovere in our efforts to resoue
the victime of Hitler's brutality. In ⑉ far as the
necessition of military operations permit, this Government
vill use all means at its command to aid the escape of Seve
and other intended victims of the Wast executioner. We call
1
149
- 2 -
upon all the peoples of Europe to lend assistance to this
task. We call upon the free peoples of Europe to open
their frontiers to the victims of oppression. We shall
find havens of refuge for them, and we shall find the means
to assure their maintenance and support until the tyrant
is driven from their homelands.
In the name of justice and humanity let all freedom
loving nations rally to this righteous undertaking.
Regraded Unclassified
The New
York
150
FEB 19 1944
Letters to The Times
Allied Could Exploit Sew Hatred
oppose this: Adolt Bitter, who will in
To THE EDITOR OF THE New York TIMES:
DO case give up his demonic hate. He
Hitler's fanaticism against the Jews
would surely stigmatise such en Allied
could be exploited by the Allies. The
demand as a personal humiliation,
Three Powers should send a proclama-
Here the generals, industrialists and
tion to the German people through leaf-
other influential Germans who are al-
lets and to the German Government
ready inclined to formake Hitler might
through neutral countries: threatening
make use of this proclamation, to begin
that further murdering of Jews would
an active opposition, saying to the peo-
pie that It would be disastrous for the
involve terrible retallation after vic-
nation not to make a concession tage
tory.
posterful enemy. In this way Hitler
This would drive & new wedge into
the already existing dissension of the
a person could be easier separati
from the nation as a whole.
generals and the Nazis, and also be-
EMIL LUDWIG,
tween ultra-Nazis and other Germans.
New York, Feb. 12, 1944.
For although neither the Junkers nor
the German people are in love with the
Jews they might be inclined in the
fatigue of beginning dereat to give in to
demands of an advancing foe who may
the their ruler tomorrow. To leave off
Jew-baiting would not cost the Ger-
itans any sacrifice, not even a military
me.
Only one single man will fanatically
Regraded Unclassified
151
Enclosure No. 1 to Despatch No. 122
C
dated February 22, 1944 from Algiers
0
P
Y
February 19, 1944
MEMORANDUM
For the purposes of discussing the refugee problem in North
Africa one must begin as far back as the early part of 1939 when large
numbers of Spanish Republicans came across the border from Spanish
Morocco to get away from France's troops. A good number also came by
ship to the Department of Oran and into Morocco and Tunisia. Figures
on these can only be estimated, but from subsequent developments it is
believed that there were some three or four thousand Spanish Republicans
in Morocco: perhaps more than that number around Oran: about 1,500 or
2,000 around Algiers: and about a thousand (mostly Spanish naval personnel)
reached Tunisia. Besides these it is estimated that about 5,000 joined
the French Foreign Legion early in 1939. It 1s expected that these may
be released from the Legion at the end of their five year period of en-
listment during the first half of 1944 and so will be added to the
Spanish refugee community in North Africa, unless they re-engage in the
Legion, immigrate to Mexico, go back to Spain or some other disposition
is made of them. À good number of Spaniards also went across the Pyrenees
into France about the end of the Civil War and subsequently managed,
individually or in small goups, to get to North Africa after the fall of
France, At the time of writing, by far the greatest part of these Spanish
refugees have been incorporated, temporarily at least, in one way or
another into the economy of North Africa, either working for French industry
or for the allied armies. In the latter case they may be used either as
civilians or as members of the British Pioneer Corps. For the miscellaneous
refugees who need charitable assistance, there have been established in
principal centers, 1. e., Algiers, Casablanca, Oran and Tunis, amicales,
or mutual aid societies under the auspices of the Joint Commission for
Political Prisoners and Refugees in French North Africa, which have been
receiving funds from the United States under Treasury Licenses to help
needy Spanish refugees.
There is also a group of stateless refugees, most of them former
enemy nationality, the greatest part of whom are Jewish. It is estimated
that there are perhaps 5,000 persons in this group in all of North Africa.
Some of these people had served in the French army during the war and had
been interned following the fall of France. They were later transferred
to internment camps in North Africa and were subsequently released after
the Allied landings, largely through the activities of the above-mentioned
Joint Commission. Since that time most of these people have secured
employment with the American or British armies, and approximately 900 of
them are enlisted in the British Pioneer Corps. Early in 1944 a group of
about 125 of these persons were sent to Palestine through the efforts of
the Joint Distribution Committee.
The small number of persons in this stateless group who are unemployable
are being maintained through funds made available by the American Joint
Distribution Committee. Included in this group are former Poles, Czechs,
Rumanians, Hungarians, Germans, Yugoslava and Greeka. The majority are
in Morocco and Algèria with a small additional group in Tunisia.
Regraded Unclassified
152
- 2 -
There is in North Africa another group of refugees, most of them
Jewish, who came from Libya and were expelled by the Italians in 1940
by virtue of the fact that they were French subjects. of the 2,500
persons in this group, approximately 2,000 have been living in Tunisia
under the most primitive conditions, the rest being scattered through-
out the back country in Algeria. Recently it was arranged with the
French authorities and the British to transport approximately 1,000
of these persons from Tunisia back to their homes in Tripoli. It is
expected that this transfer will be effected within the next few weeks.
It is hoped, too, that the balance of this group will be returned to
their homes in the near future. These Libyans have been assisted during
their stay in Tunisia by the ecours National and the American Joint
Distribution Committee.
The United States Army has made available a campsite near Casablanca
to be administered by UNRRA, this camp to house and care for 2,500 re-
fugees. An agreement had been reached with the French authorities to allow
2,500 stateless peoples now in Spain to enter Morocco and to be housed
temporarily in these quarters. We find that comparatively few of this
2,500 will avail themselves of this opportunity (the latest information
we have is between 600 and 800 are prepared to come to the camp). The
reason for this much smaller number is that (1) the refugees now in Spain
have either heard of, or have had bad experiences with the French, and
are fearful of their future in North Africa, even though the camp is to be
run by the United Nations' personnel; (2) inasmuch as change of situation
which is being offered does not seem to be sufficiently different from
that to which they have been subjected and because no assurance can be
given them as to their ultimate destination or fate they seem to prefer
to remain where they are. However, our Madrid Embassy and Mr. David
Blickenstaff, the representative of American relief organizations in Spain,
can doubtless provide more specific information on the present attitude
of the refugees in Spain.
The above group totals about 3,000 persons of which probably more
than 95% are Jewish. Because of the geographic location of Morocco,
Algeria, and Tunisia, only infrequent calle upon this office for assistance
have been made to bring displaced persons out of Europe.
By and large the French Committee of National Liberation has neither
encouraged nor discouraged the entrance of displaced persons but rather
has put the whole question on an individual case basis subject to the
real decision being made by American, British and French military security
offices, working in cooperation.
With regard to refugees being turned back at borders, this is not
currently likely to happen insemuch as the decision as to whether or not
a given individual is going to be permitted to enter is usually made in
Algiers and transmitted to the point where the visa is, or is not, issued.
Vr. Blickenstaff, representative of the American relief organizations in
Madrid, may better be in B. position to indicate cases where permission to
enter North Africa has been refused.
It is believed that in order to encourage the French Committee to
allow people or displaced persons to enter North Africa more freely, a
plan must be established by which we can tell the displaced persons, as
well as the French Committee, what their ultimate destination is: 1.0.,
how long displaced persons will be allowed to remain in French territory
after the cessation of hostilities. Will they be allowed to return to
their native lands? Will they be allowed to immigrate to the United States
or some other country of their choice? It ie understood that the ultimate
destination
Regraded Unclassified
153
- 3 -
destination of many of these refugees, and particularly the stateless,
will be the responsibility of the Intergovernmental Commission for
Refugees of which Sir Herbert Emerson in London is Chairman. It should
be mentioned at this time that Mr. Patrick Murphy Malin, Vice-director
of the above committee is in this theater making a survey of the condi-
tions of the refugees in this part of the world. At the moment it is
not known what the I.G.C. has been able to develop in the way of places
for these refugees ultimately to settle.
Inasmuch as the Mexican Government has offered to accept immigrants
from the Spanish Refugee Community in North Africa, it is felt that the
French authorities would be more willing to receive additional refugees
in French North Africa if this Spanish refugee emigration project is
expedited and carried through as soon as possible. Lists of those who
have expressed a desire to go have been sent to Mexico City through
our own State Department channels and are now being considered by the
Mexican Government. If similar arrangements for certain refugees can
be arranged with other countries, the attitude of the French Committee
of National Liberation would probably be correspondingly more receptive
to additional refugees.
The French administration, whenever asked, has expressed a desire
to cooperate in all matters pertaining to rescue and relief, but because
of the limited supplies and because of the internal strife which always
exists in a country that has been drained by the Axis Armistice Commissione,
they find themselves today in a reluctant frome of mind insofar as addi-
tional persons to feed, house and clothe are concerned. Very little can
be done to change this state of mind until sufficient clothing, foodstuffs,
etc. are either sent into the country or the economic life of the country
has been restored.
It should be pointed out that one of the great difficulties that the
Department is faced with is the question of the French administration's
policy on internment of refugees. There have been several cases brought
to the attention of the Department where refugees had been previously
interned, by the French under Axis pressure, and had been liberated, and
who now are either re-interned or threatened with re-internment, even
though demonstrably anti-Axis. The reasons given by the French authori-
ties, when these cases have been discussed with them, have either been
that the individual dossier contains some often nebulous charges which
we are unable to verify, or simply that the individuals in question were
once enemy nationals.
PFWimem
Regraded Unclassified
154
From Office of the Representative of the United States,
Algiers.
AIDE MEMOIRE
The President of the United States has recently in-
structed 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, the President
declared:
"It is the policy of this Government to
take all measures within its power to rescue
the victime of enemy oppression who are in in-
minent 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 created 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 Com-
mittee, UNRRA, and other interested international organiza-
tions. The President stated that he expected the co-
operation of all members of the United Nations and other
governments in carrying out this difficult but important
task. We stated that the existing facilities of the
State, Treasury and War Departments would be employed
to furnish aid to Axis victims to the fullest extent pos-
sible. We stressed that it was urgent that action be
taken to forestall the phot of the Nazis to exterminate
the Jews and other persecuted minorities in Europe.
The Office of the Representative of the United States
of America in common with other representatives of the
Government of the United States stationed abroad has been
instructed to do everything possible to effectuate the
above outlined policy. It has also been instructed to
approach the appropriate authorities of the French Committee
of National Liberation to explain the policy expressed
in the President's executive order above referred
to and in requesting the cooperation of the French Com-
mittee of National Liberation to ascertain to what extent
it is prepared to assist in this high humanitarian program.
Algiers, February 5, 1944.
Regraded Unclassified
155
EGC
AIRGRAM
Reykjavik
Dated February 19, 1944
Rec'd 5 p.m., 22nd
Secretary of State,
Washington.
A-19, February 19, 10 a.m.
Reference Department's circular airgram of
January 26, 7 p.m.
The actual situation in Iceland as it exists today
with respect to the rescue and relief of the Jews of
Europe and other victims of enemy persecution is as
follows:
1. According to official records, some 40 persons,
most of whom are Germans and most of which Germans are
thought to be Jews, have migrated to Iceland since the
beginning of 1937, 13 coming in 1938, 15 in 1939, 6 in
the first part of 1940 and none since. Prior to the
outbreak of war there were no visa requirements for
entry into Iceland, though permission of the Ministry
of Industry to work on one's own account or to accept
employment was required then as it is now. Since the
outbreak of war, war refugees are permitted to enter
Iceland on an equal footing with all other immigrants
or non-immigrants, subject, of course, to special
security considerations deriving from Iceland's
strategically important military position.
2. According to the Permanent Undersecretary for
Foreign Affairs, there are "no Icelandic Jews" and no
reason has ever existed for Iceland actually to encour-
age the entry of the Jews of Europe, or other victims
of enemy persecution, into Iceland. The same official
stated that he is unsware of any specific international
plan covering this important, tragic and difficult
matter, and that since Iceland has never been approached
in connection with any such plan it has not been in a
position to "cooperate" in their entry. He said that
he did not know of any approach by official bodies or
protective associations to the Iceland Government or
to its representatives abroad looking to the acceptance
of any numbers of refugees.
3. As far as this mission is concerned, it is not
Regraded Unclassified
156
-2- A-19, February 19, 10 a.m., from Roykjavik
not in a position to ascertain the extent to which
refugees are not able to enter Iceland because of the
country's failure to cooperate in their entry. From
what can be learned locally, it appears that Iceland
has never had any reason to encourage such immigration;
whether it has failed to cooperate might better be
ascertained by discreet inquiry at the various points
such as Lisbon, London, New York, et cetera, where
there are understood to be large concentrations of
refugees.
4. PERSONAL FROM THE MINISTER: I talked at
length with Mr. Vilhjalmur Thor, Icelandic Minister
for Foreign Affairs. As a result Mr. Thor is aware
of the grave import of the problem presented which,
to tell the truth, is one that Iceland has been
separated from and only knows of by heresay. Mr.
Thor said that he was not in a position to state at
the present time what the attitude of his government
and people would be towards cooperation and participa-
tion in the solving of the problem. He felt that
governmental and national reaction could only be
ascertained if concrete proposals were made to the
Icelandic Government. He said that anything received
would be examined attentively, as is always the wish
of the Icelandic Government concerning any proposal
received from the United States. Mr. Thor remarked
that Iceland was a country of poor economical resources
with a small homogeneous population who had lived in
a state of semi-exclusion from other Europeans for
centuries. It therefore could not be expected that
the Icelanders could quickly adjust themselves to &
basically different viewpoint in respect to foreigness.
On the other hand, he felt that there was no anti-
Semetic feeling here and that Icelanders in common with
other decent free people sympathized with and deplored
the fate of Jewish and other victims of Nazi and Pas-
cist mistreatment.
MORRIS
HEM/LBM1W86
711 811.11
Regraded Unclassified
157
NO. 2458 (R - 2285
AMERICAN CONSULATE GENERAL
Istanbul, Turkey, February 19, 1944.
SUBJECT: Conditions in Greece as Reported by a
Recent Arrival.
THE HONORABLE
THE SECRETARY OF STATE,
WASHINGTON.
SIR:
I have the honor to submit information concern-
ing conditions in Greece obtained in the course of
two interviews with a Turkish subject who recently
arrived in Istanbul from Athens. The information
is discussed under the following headings: Travel
from Athens to Istanbul (schedule of the trip,
description of the train, delays in the journey);
the bombing of Piraeus (extent of the damage caused,
removal of factory installations; influx of
refugees to Athens; relief given by the International
Red Cross, airraid precautions); the condition of
the Jews in Athens (registration with the author-
ities, confiscation of property, assignment to
forced labor, plight of the Spanish Jews); events
following the rupture of relations between Argentina
and Germany; financial activities (stock exchange
transactions, speculation in gold, value of the
Drachma, premium for cash payments, control of
savings accounts); labor and wages (increase of
salaries, granting of supplementary food allowances,
sit-down strikes; assassination of Minister Kalyvas);
COI Chauncey, Abrahamson, Aksin, Bernstein, Cohn, DuBois,
Friedman, Gaston, Hodel, Laughlin, Lesser, Luxford,
Mann, Marks, McCormack, Murphy, Paul, Pollak, Rains,
Smith, Standish, Stewart, H. D. White, Pehle, Sargoy,
Mannon, Weinstein, Files
Regraded Unclassified
158
- 2 -
living conditions in Athens (increase of rents,
reduction of electric and water consumption,
increases in street car fares, bus and taxi fares,
distribution of food by the International Red Cross
and German authorities, rationing of cigarettes,
prices of newspapers, fee for radio permits, food
prices).
***
Travel from Athens to Istanbul
My informant, a well-to-do Jewish rug merchant,
left Athens February 8 and arrived in Istanbul
February 12, travelling by military train as far as
Nish, thence by the regular express. The schedule
was as follows: Left Athens 7:36 A.M. February 8,
arrived Salonica 5 A.M. February 9, left Salonica
8:15 A.M. February 9, passed Gevgeli about noon,
arrived Skoplje 5 P.M., left Skoplje in the evening,
arrived Nish 5 A.M. February 10, left Nish 3:50 P.M.
February 10, arrived Sofia 1:05 A.M. February 11,
left Sofia 11:15 P.M., arrived Istanbul February 12,
The military train consisted of eleven cars:
one first-class car reserved for officers and ten
third-class cars for German troops. Four German
guards were assigned to each car. Of eight seats
in the first-class car which were reserved for
civilians, three were occupied by my informant and
his wife and child, four by Greek workers returning
to Germany, and one by a Greek traveling to Salonica.
The Athens-Salonica line was intact and no changes
had to be made at any point. (My informant stated
that there is a regular train for civilians leaving
Athens once a week, Mondays at 8130 A.M., and
occasionally an extra train later in the week. This
train makes the trip more slowly, within 48 to 60
hours). The journey was accomplished without
incident. There were only two delays of any length:
a stop at Skoplje to permit the soldiers to be
served hot meals, and a halt of six hours between
Skoplje and Nish, which was rumored to have been
caused by the necessity of awaiting a special train
carrying Marshal List on his way southward.
Regraded Unclassified
159
- 3 -
The Bombing of Piraeus
My informant, who was in Athens at the time of
the Allied raid on Piraeus the night of January 11,
gave the following account of damages sustained.
Both the Peloponneaus and Larisea railway stations
SPAP and SEX railways) were seriously damaged. The
terminal station of the Electric Subway was also
hit, as a result of which there 1s subway service
now only between Athens and New Phaleron. Among
the buildings destroyed in the business center,
a section which was heavily hit, were the Bank of
Athens on Miaculis Street, the Bank of Greece, the
Ionian Bank, the Electric Company's building near
the Municipal Theatre, and the building housing
the Scandinavian Near East Agency. In the port
a number of small craft and barges were sunk. The
Retcina Cloth Factory and the Papsutsania Soap
Factory were both reported to have been seriously
damaged. Following the bombing, part of the
machinery of the Papastratos and Keranis cigarette
factories was said to have been shifted from
Piraeus. The Keranis installations were moved
to the so-called Kapnokaptirian in the suburb of
Kolokynthos.
On the day after the raid there was a steady
stream of refugees, estimated by two sources to have
numbered about 200,000, fleeing toward Athens; they
ignored all official orders to return to their
homes, Workers, however, were obliged under penalty
of application of the sabotage law, to appear at
their posts in Piraeus daily. Those refugees who
reached Athens were billeted with Greek families.
According to my informant, the International Red
Cross immediately set up soup kitchens in Piraeus
and distributed milk to children. Contrary to the
propaganda reports given over Athens Radio (see Section
II of my despatch No. 2311 (R-2149) of January 27,
1944) the Germans gave no aid whatsoever, but simply
prohibited the citizens of Piraeus from blocking
the main roads to Athens in their flight.
Concerning airraid precautions my informant
stated that, in accordance with announcements in the
press reported in my despatch No. 2410 (R-2237) of
February 11, 1944, measures have become much more
Regraded Unclassified
160
- 4 -
stringent with regard to circulation during alerts,
but he knew of no instance in which a severe penalty
had been imposed. No steps are being taken to
improve airraid shelters in Athens; the only adequate
public shelters are those in the Metochikon Tamsion
building and in the Bank of Athens on Stadium Street.
It is reported that a tunnel connects the Ministry
of War and the Grande Bretegne Hotel.
The Condition of The Jews in Athens
With regard to the 7,000 Jews that he estimated
to have been living in Athens, my informant stated
that only about 200 of the poorest reported to the
authorities following the order of October 3, 1943
(reported in Section VI of my despatch No. 1601
(R-1483) dated October 22, 1943), and that a further
200 presented themselves within the last four months.
The others, who possessed funds with which to purchase
their safety, went into hiding. All the homes and
movable property of those who left were immediately
confiscated and the Jewish shops were completely
looted. Those Jews who reported to the authorities,
as well as a number who were later betrayed by
people who had given them refuge, have been assigned
to work in the gunpowder factory at Baydari on the
road to Eleusis. Jews of foreign nationality, the
number of whom my informant estimated at 800 - 900,
registered on October 18 (according to the order
reported in the above-mentioned despatch). The
Spanish Jews, about 150 in number, who had escaped
to Athens from Salonica, are in a serious predicament.
The Spanish Government has refused to accept them
on the ground that they are Communists, and they are
now making desperate efforts to obtain transit visas
for Turkey in order to proceed to Palestine.
Events Following the Rupture of Relations Between
Argentina and Germany
It was stated by my informant that immediately
following the breaking off of diplomatic relations
between Argentina and Germany, on the night of
January 29 between 11 P.M. and 2 A.M. the SS arrested
twenty Argentine subjects, including the Messrs.
Pition, Benardut, and Moses. Despite demarches by
the Argentine Charge d'Affaires, Juan Faquis,
Regraded Unclassified
161
- 5 -
assisted by the Swedish Consul Riseberg, no information
has as yet been received concerning the whereabouts
of these individuals.
The archives of the Argentine Consul have been
sealed and are under the protection of the Swedish
Consul. My informant reported that the Germans had
advised Consul Riseberg that they had not as yet been
informed that the Swedes were charged with Argentine
interests. This detailed information had been given
my informant by the Argentine Charge d'Affaires, with
the request that he comminicate it to the Consul
General in Istanbul so that it might be telegraphed
to Buenos Aires.
Financial Activities
In reference to stock exchange transactions,
my informant stated that speculation is heavy both
in company shares and in Government bonds. The rise
in the value of company stocks and bank stocks, he
stated, has been more rapid than in Government bond
shares, since the speculators feel that company and
bank assets in the form of property, buildings and
equipment are actually rising in value, more or less
on a par with the cost of living index.
My informant added that although the Greek
Government requested all companies to turn in up to
50 percent of their security holdings (see page 18
of my despatch No. 1732 (R-1605), dated November 9,
1943) only 10 percent were actually delivered follow-
ing a strong protest at the time by the late George
Merkeuris, Governor of the Bank of Greece.
Transactions in gold are now made freely on the
stock exchange, which is open daily for one half hour
between 11:30 and 12 noon. The bourse price for the
gold pound determines the outside market price of
the day, the latter usually being about 100,000
Drachmas higher. The dollar follows the gold pound
at a ratio of 20 to 1. The Germans, using Greeks in
the banks as intermediaries, are speculating heavily
by importing gold from other occupied countries as
well as from neutral countries. My informant's
estimate of the quantity imported was over 100,000
gold pounds a month. The gold quotation for the day
Regraded Unclassified
162
- 6 -
depends largely upon whether the stock exchange is
delivering the gold within one or two days, or
delays delivery. Between January 10 and 15, for
example, the Germans did not make delivery of any
gold for five days, and the pound soared from
2,200,000 to 4,500,000 Drachmas, only to drop
abruptly over the weekend, following the gold
delivery, to 3,000,000 Drachmas. In late January
the price of the gold pound fluctuated between
3,000,000 and 3,500,000 Drachmas, and on February 1
stood at 3,200,000. By February 7 the rate had
increased to 4,250,000, and the corresponding rate
for the dollar was 210,000 Drachmas.
There is a 15 percent premium for payments made
in cash as against check or draft payments, 1.e.,
an individual is usually given the option of paying,
for example, one million Drachmas in the form of a
draft on an Athens bank, or 850,000 Drachmas in cash.
All savings accounts are controlled, and the
maximum amount which may be withdrawn during any week
has been fixed at 300,000 Drachmas. This, however,
is largely an academic matter, since most people,
who hold bank deposits dating from before 1941 have'
left them in the banks, as their purchasing power
has so greatly decreased.
Labor and Wages
With regard to wage scales in general, my
informant stated that all salaries had been increased
as of February 1, and that a Government cler, for
example, now earns between 1,500,000 and 2,000,000
Drachmas a month. In addition employers are obliged
to provide each employee with an allowance of flour,
dried vegetables, dried fruit, and soap, to a value
of 20,000 Drachmas a day. My informant stated that
the employees both of the Bank of Greece and of the
National Bank receive sufficient cash allowances,
calculated on the basis of the average monthly
prices of staples such as beans, olive oil, eggs,
macaroni, flour, et cetera. The employees of the
Agricultural Bank likewise receive cash allowances
and grants in kind through the provincial branches,
Regraded Unclassified
163
- 7 -
A sit-down strike commenced at the Bank of
Athens on January 25. No announcement of this trouble
appeared in the Athens press; the bank authorities
simply explained to the Germans that certain indi-
viduals were missing from their posts and that the
situation was well in hand. One week later the
striking employees received small increases in their
food allowances. Encouraged by this result, on
February 5 the employees of the Commercial Bank
began a sit-down strike which was still in progress
at the time of my informant's departure.
Asked regarding the assassination of Nicholas
Kalyvas, Minister of Labor, my informant confirmed
reports that he had been killed by alleged Comminists
as he entered his car in front of his home. On the
following day fifty hostages were shot in reprisal.
It was said that Kalyvas, who worked very closely
with the Germans, had intended to propose a law
involving the dismissal from factories of a large
number of workers who would then be compelled to
accept positions in Germany.
Living Conditions in Athens
According to my informant the increase in the
population of Athens has caused great aggravation of
the housing problem. Although rents were raised by
law, on January 1 of this year, to fifteen times
the pre-war rates for residences and thirty times the
pre-war rate for stores and offices, the actual rent
now being paid for a four-room apartment ranges
from 100 million to 120 million Drachmas a year.
The law protecting tenants does not apply to anyone
earning more than six million Drachmas a year, and
in consequence it is largely academic.
The consumption of electric current has been
reduced to a minimum Since October it has been
banned for cooking purposes, and each family is
allotted six kilowatt hours per month. At present
electric current is available only between six and
nine in the morning and from sunset until midnight.
The Water supply has also been cut down; since
January 25 water has been turned on only three times
a week, on Tuesday, Thursday and Saturday between
6 and 10 A.M.
Regraded Unclassified
164
- 8 -
With regard to local transportation facilities,
my informant stated that street car fares were
increased as of January 15 to 3,000 Drachmas for
trips within the city, and to 4,000 Drachmas from
Athens to Phaleron. A considerable number of
dilapidated buses installed with gasogene engines
serve the suburbs. The fare to Hiphissia is 15,000
Drachmas; to Piraeus 20,000 Drachmas. Yellow Power
Company buses still run to Psychiko; the fare is
12,000 Drachmas. In view of the small demand, the
number of taxis is adequate. Each one is permitted
to circulate only in one ten-day period each month,
a uniform rate is charged: 100,000 Drachmas per
kilometer. The passenger is obliged to pay for the
round trip.
During January the International Red Cross
distributed 140 drams of dehydrated soup per person
at a cost of 1,000 Drachmas, and one oke of flour at
a cost of 3,000 Drachmas. Furthermore, 200 drams
of beans had been promised from the International
Red Cross shipments, but distribution had not taken
place by February 7. The German authorities dis-
tributed 100 drams of sugar at a price of 25,000
Drachmas during January, and 200 drams of lentils
have been promised. My informant pointed out that
whereas the nominal charges of the International
Red Cross were used simply to defray freight and
handling charges, the price of the German sugar was
arbitrarily determined by the DEGRIGES.
During January each individual received three
boxes of matches at 1,000 Drachmas. The cigarette
ration, which in December was reported to be 300
cigarettes a month (see page 5 of my despatch No. 2410
(R-2237) dated February 11, 1944), was reduced during
January to 300 and actually, according to my
informant, only 200 were distributed to each person.
The price per box of twenty, reported as 3,000
Drachmas in my above-mentioned despatch, was increased
fivefold on February 1. Ordinary cigarettes sold
officially at 15,000 Drachmas per box and the de
luxe variety cost 50,000 Drachmas. On the black
market a box of ordinary cigarettes sold at 50,000
Drachmas and the de luxe cigarettes at 80,000
Drachmas.
Regraded Unclassified
165
- 9 -
On January 20 the official price of newspapers
was increased to 4,000 Drachmas; however, 5,000
Drachmas was the price actually demanded by newsboys.
E.A.M. publishes a secret daily news bulletin
including the Cairo, London and Moscow communiques.
This is sold at 20,000 Drachmas.
The regular monthly fee for the use of a radio
is 15,000 Drachmas; only the Athens broadcasting
station can be heard.
The following list of food prices provided by
my informant shows, when compared with December
quotations (see my despatches No.2239 (R-2082) of
January 18, 1944 and No. 2321 (R-2138) of January
28, 1944) approximately a threefold increase in the
cost of food. Prices are given in Drachmas per
oke.
ITEMS
PRICES - February 5
Bread
100,000
Potatoes
100,000
Flour
160,000
Sugar
500,000 - 550,000
Eggs (each
20,000
Rice
450,000
Corn
55,000
Wheat
82,000
Coffee
250,000 - 300,000
Cognac (small bottle)
350,000 - 400,000
Macaroni
100,000 - 200,000
Beans
160,000
Lentils
130,000
Oil
550,000 - 600,000
Butter
1,000,000
Meat
420,000
Pork
480,000
Fat
700,000
Fish
350,000
Olives
220,000
Figs
80,000
Raisins
66,000 - 72,000
Onions
35,000
Milk
85,000 - 100,000
Cheese: white
360,000 - 500,000
If
# Esseri
900,000
Fuel wood
15,000
Charcoal
40,000
Regraded Unclassified
166
- 10 -
ITEMS
PRICES - February 5
Electricity (Jan. 20)
10,000
Gas (cubic meter)
3,000
1 suit
18,000,000 - 20,000,000
(6,500,000 for sewing)
1 shirt
2,000,000
1 Pair of shoes (men)
6,000,000
1 If " If (women)
5,000,000
1 If If socks
400,000
1 " If stockings
400,000
Toothpaste (Kolynos
100,000
House soap (per oke)
400,000 - 420,000
Toilet soap (cake)
70,000
Matches
6,000
Respectfully yours,
Barton Y. Berry
American Consul General
File No. 820.02
HDB:GGW:vis
To Department in Original and Hectograph.
Regraded Unclassified
167
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Bern
TO:
Secretary of State, Washington
DATED:
February 19, 1944
NUMBER: 1055
CONFIDENTIAL
Reference is made herein to By 823, February 10.
It is reported by Riegner that he has arranged for
1 million French france to be turned over to W.J.C. repr8-
sentative in France. Because of his Jewis faith, the Sup-
plier of France who is a Swiss citizen was compelled to
return to Switzerland in November 1942. Until that time,
he had resided in France. This person had considerable
wealth in France which was recognized by the Swiss clearing
office as his property, according to documents presented to
Reagner. Swiss francs 1.85 per hundred French francs was
the rate at which Riegner purchased francs.
HARRISON
Regraded Unclassified
The New York Times.
FEB 20 1944
REFUGEE AID CHIEF
gee Board, Mr. Hirschmann will be
the first and only United States
citizen in Turkey to be allowed to
AT WORK IN TURKEY
disregard the Trading With the
Enemy Act.
Asked whether he had an Idea of
Hirschmann Cuts Red Tape
the enormous difficulties that
would confront him, Mr. Hirsch-
as He Maps Plans to Help
mann said:
Oppressed Europeans
"Certainly, no one more than 1
realizes how complex and intricate
is the task undertaken by the
By JOSEPH M. LEVY
Refugee Board. A cursory glance
al the position makes it clear that
by Cable to THE New York TOME
is full mobilization of every re-
ANKARA, Turkey, Feb, 19-
source at our command will be
From his bed to which he was con
necessary if we are to attain any
fined by an attack of influenza, Dr
measure of success. I fully expect
to encounter great obstacles in my
Isnac Herzog, chief rabbi of Pal-
work, but how could we ever
estine, at present in Ankara in
justify ourselves before the bar of
connection with plans for the res-
history if we did not probe every
que of Jews from Europe, rose to
avenue and left no atone unturned
greet Ira A. Hirschmann, vice pres-
to try to save all that can be saved
of those unfortunate human beings
ident 01 Bloomingdale Brothers,
regardless of race or creed faced
Inc., who has just arrived here to
with annihilation in Europe.
take up his duties as official repre-
"I expect help not only from In-
sentative of the newly formed War
dividuals and organizations but
Refugee Board.
from the entire civilized world. Let
Mr. Hirschmann went to work
us pray that all other nations will
within half an hour of his arrival
follow the example of the United
in Ankara. He is invested with
States and give us their unstinted
full responsibility of implementing
aid in this great humanitarian un-
the board's program and policy in
dertaking.
Turkey,
To Rabbi Herzog's appeal not to
One of his main tasks will be to
waste time on red tape Mr. Hirsch-
develop the plans for the rescue
mann replied that the Refugee
and transportation AA well as re-
Board, headed by its dynam(: di-
lief and maintenance of refugees.
rector, John Fehele, was an initru-
No American diplomat of this war
ment tempered for immediate and
has received such extraordinary
unreserved action, untramrieled
powers in carrying out his duties
by party restrictions and that it
as those granted to Mr. Hirsch-
would be a grievous crime to allow
mann. Under the authority vested
this work of mercy salvation to be
by the Treasury in the War Refu-
impeded by any formalities.
Regraded Unclassified
169
COPY
AHC-170
Ankare
This telegram must be
paraphrased before being
Dated February 19, 1944
communicated to anyone
other than a Government
Rec'd 10:39 P.E.
Agency. (BR)
Secretary of State,
Washington.
299 February 19, 9 p.m.
FROM HIRSCHMAN FOR JOHN PEHELE
Referring to My telegram of February 18 regarding
the desperate need for a boat immediately to evacuate
refugees from Constansa to Istanbul further explora-
tions indicate that Turks are consistently slow in
making decisions or taking action even though we hope
to secure from you authority to offer to replace the
ship VATAN in the event of loss.
While I would not under any circumstances suggest
that you relax your efforts in trying through every
means to help us secure this boat I now believe that
our best immediate hope is to get a boat through the
Swedish Government and I would urge that to put more
emphasis on your efforts in this direction than indicated
in By previous telegram. I am seeing the Swedish Minis-
ter here with Red Cross official and trust you will
push action through Washington to Sweden with all
vigor also you will be interested to learn that Am-
bassador Steinhardt had a talk on February 18 with
the British
Regraded Unclassified
170
Regraded Unclassified
-2- #299, February 19, 9 p.m., from Ankara
the British Ambassador who has agreed to send a note
to the Foreign Office concerning the plight of Jews in
France of Turkish origin. The note will be presented
to one of the higher officials of the Foreign Office
by a member of his staff who in discussing the subject
with him will indicate that the British Government sup-
ports the request made by Ambassador Steinhardt on
two previous occasions on the Foreign Minister to make
the necessary representations to the Vichy Government
that Jews of Turkish origin be not expelled from France.
As you undoubtedly know the 10,000 Jews were allegedly
divested of their Turkish nationality by operation
of Turkish law. We are importuning the Turkish autho-
rities to interest themselves to the point of pro-
tecting these 10,000 Jews of Turkish origin now in
France to save them from being deported to Poland.
Also I have asked the Soviet Embassy here to help in
the matter of securing detailed information regarding the
causes of the bottlensck situation in Bulgaria.
STEINHARDT
EDA
171
NOT TO BE RETRANSMITTED
U.S. SECRET
BRITISH MOST SECRET
COPY NO.
IV
optel NO. 57
Information received up to 10 A.M. 19th February 1944.
1.
NAVAL
Mediterranean. Weather continued fine at Anzio and
on 17th 2,685 tons were discharged. On 17th one of H.".
Cruisers was damaged in collision and on 18th another British
Cruiser was sunk by U-boat off Naples, approximately 250
survivors. One of H.M. Submarines sank a 3,000 ton ship off
Toulon.
Pacific, 16th. Coastal Craft damaged a 1,200 ton
enemy ship and five burges in Bougainville Street, Anti
Submarine operations. 17th, Aircraft sank a U-boat in
New-Hanover Area. On 18th a British Frigate sunk a U-boat off
Cape Clear.
2.
MILITARY
Italy. 4th Indian [ivisions are attacking through
Northern outskirts of Cassino. Strong enemy attacks were
maintained in Anzio Beachhead, Allied Forces held their own
and are counter attacking.
Russia. Northern sector. 18th. Russians made
progress South and S.W. of Luga and S.7. Novgorod occupying
re)lway station Shimsk and Staraya Russa.
Crimea. An unconfirmed report states t,at Germans
have begun evacuation of Crimea using small S! ips.
3.
AIR OPERATIONS
Western Front. 18th/19th. About 90 enemy Aircraft
crossed East coast and majority attacked London. First reports
indicate five enemy Aircraft brought down by A/A fire, two in
combat over enemy territory and one destroyed, two damaged on
the ground. Damage was fully to residential property and
included 12 large fires and nearly 400 small fires all under
control by 6 A.74 Some interruption to railway communications.
Total casualties all natures reported about 500.
Italy, 16th/17th. 54 Wellingtons (1 missing)
bombed San Stefano and targets S.E. of Rome. 17th. 790
Bomber Sorties flown against targets in Anzio bridgehead and
main battle area, 7 Heavy 1 Medium and 1 Fighter Bomber missing.
TREASURY DEPARTMENT
Regraded Unclassified
172
No. 574
Ankara, February 20, 1944
Confidential
Subject: Evacuation of Jews from Axis Europe.
The Honorable
The Secretary of State,
Washington.
Sir:
Referring to the Department's telegrams No.68 dated
January 25, and No. 118 dated February 11, 1944, requesting a
report concerning the actual situation as it exists today in
Turkey in respect of 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 not permitted to
enter Turkey; (b) the extent to which Turkey actually encourages
and cooperates in their entry, and (c) the extent to which such
refugees are not able to enter Turkey because of Turkey's
failure to cooperate in their entry, and requesting my recom-
mondations as to what the United States Government can do to
effectuate with all possible speed the rescue and relief of
the victims of enemy oppression, including particularly what
can be done to make the Turkish Government cooperate more
in carrying out this policy. I have the honor to submit the
following information and recommendations:
Over a period of the past two years the Embassy has made
every effort to facilitate the transit of Jews from the Axis
countries through Turkey en route to Palestine. Its efforts
have been hampered by (1) the unwillingness of the Axis countries
to permit Jews to depart therefrom, and (2) the difficulties of
transportation. Further details with regard to these points are
given below:
With reference to the specific points referred to above,
under (a), (b) and (c), I may say that the Turkish Government
has repeatedly given evidence of its willingness to grant a larger
number of transit visas to Jewish refugees to pass through Turkey than
the number of refugees who have been able to reach the Turkish
frontier due to the fact that refugees have been unable to depart
from Axis territory. Although willing to grant more visas than
have been utilizable, the Turkish Government has thus far declined
to authorise the charter of a. Turkish boat to be used to bring
refugees from Rumanian or Bulgarian ports to Turkey, fearing such
vessel would be sunk in the Black Sea,
My recommendations as to what the United States Government
can effectively do in this situation are (1) immediately promise
the Turkish Government that should the latter permit a Turkish
vessel to carry refugees from Rumanian or Bulgarian ports to
Istanbul and should such vessel be lost, the vessel will be
immediately replaced; and/or (2) arrange immediately to make a
Regraded Unclassified
173
- 2 -
vessel available for the purpose in question; and (3) bring to
the notice of the Axis governments and peoples, by use of the
radio, the issuance of public statements and other means, that
they will be held accountable in the final settlement for their
mistreatment of the Jews and other minorities. In this connec-
tion reference is made to my telegram No. 282 dated February 18,
1944, containing a similar recommendation from Mr. Ira Hirschmann
to the Director of the War Refugee Board.
I submit for the Department's further information in connec-
tion with the foregoing the following data in respect to the
problem of rescuing Jews and other persecuted minorities from
the Axis countries:
The movement of Jews into Palestine from Axis countries has
been divided in general into two categories: (1) legal immigra-
tion into Palestine from the Axis countries; and (2) illegal
immigration into Palestine from such countries.
Legal immigration into Palestine
The British Government at the beginning agreed to admit into
Palestine from Axis countries two classes of persons:
(a) Persons who were granted immigration certificates be-
fore the rupture of diplomatic relations between Great Britain
and Rumania, Hungary and Bulgaria but were unable to depart there-
from for Palestine.
(b) Relatives of persons actually resident in Palestine.
Subsequently, in 1942, a. third category was added, namely,
4,500 children plus 500 adults coming from Bulgaria, Rumania
and Hungary, whose admission into Palestine was agreed upon.
The plan involved the issuance of 5,000 immigration certificates
which would be distributed as follows:
Children
Adults
Bulgaria
1800
200
Rumania
1800
200
Hungary
(including Slovakia)
900
100
4500
500
The proposal also included the issuance by the Swiss Con-
sulates in the three capitals of visas to persons approved by
the representative in each capital of the Jewish Agency for
Palestine.
Later, in 1943, the British Government announced that
29,000 Jewish refugees from Europe would be admitted into Pales-
tine, This figure was to include the 4,500 children and 500
adults referred to above.
The British Government some time ago agreed to admit into
Palestine during the period 1940-44 not in excess of approximately
75,000 Jews; very recently it announced that the period of time
during which this number would be admitted would be extended.
In so far as Turkey is concerned, the problem has been one
of transit across Turkey en route to Palestine.
Regraded Unclassified
174
- 3 -
discussions between the American and British Embassies with the
Turkish authorities concerning the transit of refugees across
Turkey to Palestine, the Turkish Government declined to permit
the proposed refugees to be carried on Turkish vessels (by
reason of lack of coal and space, and other technical reasons).
It agreed, however, to permit a limited movement by rail across
Turkey. The question of the refugees being carried on other
Turkish flag vessels was also raised but no definite decision
has been reached due to the total lack of such vessels.
In april 1943 the Turkish authorities agreed to attach
every ten days to a train from Haydar Pasa (Istanbul) to Aleppo
one coach, on which a group of 75 refugees would be carried.
It was stipulated that each such group must have departed from
Trukey before the second group could be admitted. Subsequently,
as the result of a conference between the American Ambassador
and the Turkish Minister for Foreign Affairs, this stipulation
was withdrawn. However, under this arrangement no single group
of 75 persons has to date reached Haydar Pasa, because it has
been impossible to arrange for the refugees to be released from
Axis territory.
Endeavors were subsequently made, through the Swise auth-
crities, to arrange for the emigration from Bulgaria and Rumania
of & considerable number of Jews who were about to be expelled
to Poland. Since the collapse of Italy there has been a diminu-
tion in the movement to Poland.
Since late 1942, a system has been in force whereby lists
of names of immigrants in the approved categories mentioned
under (a) and (b) above are submitted to the Turkish Government
with the request that transit visas be granted to these persons
in Hungary, Rumania and Bulgaria. The Turks have made a re-
strictive limit of nine "persons" per country per week in order
not to overload the Turkish trains, but this restriction has
been so liberally interpreted as to constitute each "person" a
family of not more than five individuals, or a total of 45 per-
sons. The Hungarian and Rumanian Overnments have allowed out
a modest number of families under this scheme, but very few have
come out of Bulgaria, the Bulgarian Government having, in April
1943, prohibited the exit from or transit through that country
of Jews, thus bringing to an almost complete stop the emigration
of Jewa from Axis Europe, in view of the fact that the only
means of exit by land to Turkey from Axis countries north of
Bulgaria is through that country.
At the present time two groups of 75 children each in
Rumania are being prevented from starting their journey because
of the refusal of the Bulgarian authorities to allow them to
transit Bulgaria. Consequently, efforts are now being made to
have these two groups sent to Istanbul by boat from Rumania.
The International Red Cross is working on this matter. Pales-
tine has agreed to accept them. The Turkish authorities have
assured the Embassy that they will furnish two railway cars if
these children succeed in reaching Istanbul. The SS BELACITTA,
now at Constansa, is being considered as a vessel on which
these children might be brought to Istanbul.
There is also under consideration a proposal for the de-
parture of 300 children from Hungary under the Turkish transit
scheme of 75 people every 10 days but their departure is also
being prevented by Bulgarian transit difficulties.
Regraded Unclassified
175
4
The Turkish Ministry of Communications has recently agreed
with the Embassy to furnish two cars per week over a limited period
of time to transport a limited number of refuge es through Turkey.
In general, the German authorities have prevented the
departure of large groups although small groups leave either with
their consent or by means of bribery.
Illegal immigration into Palestine
The illegal immigration began about 1940 when the Palestine
immigration quota was very small. Bulgarian and Rumanian pro-
moters obtained the use of unseaworthy vessels and sold space on
them at extortionate prices. The boats would start out for Pales-
tine, passing through the Straits, which they could do without
interference by the Turkish authorities. If the vessels succeeded
in reaching Palestine, the passengers, not being admissible under
the quota, were destined to be deported to the Island of Mauritius.
One of the vessels, the S.S. PATRIAS, was sunk in the harbor of Haifa.
The cause was never determined. A number of the ships which
started from Bulgaria and Rumania for Palestine were wrecked on
the Turkish European coast of the Black Sea. Others were wrecked
in the vicinity of Mersin.
At this time the British Legations in Rumania and Bulgaria
asked the respective governments to put a stop to the emigration
but the governments in question refused or failed to do SO. The
Turkish authorities threatened to return to the country of origin
such of the refugees as had landed in Turkey. The British Govern-
ment requested the Turkish authorities to delay such action.
Eventually many of the refugees were sent to Cyprus where some
are still living; however, the absorptive capacity of Cyprus
was soon exhausted and it soon became impossible to send more there.
This illegal immigration ceased some time ago. It 1a possi-
ble it may be resumed, particularly should the procedure for
legal immigration break down. Confidential information indicates
the possible use for such illegal immigration of the following
vessels; the S.S. MILKA, now understood to be at Varna, which can
carry about 200 passengers; and the S.S. MARITZA, now understood to
be at Constanza, which can carry about 250 passengers. These
vessels are of about 200 and 250 tons, respectively, and would,
of course, be very overcrowded, were the number of passengers
indicated taken aboard. Furthermore, their seaworthiness is in doubt.
In this connection, I may add parenthetically that as 6. result
of theStruma disaster (February 24, 1942), I have approached with
caution any proposals for the use of questionable vessels for the
further evacuation of refugees from Rumanian or Bulgarian ports and
have insisted as a sinegua non that any vessel in Turkish waters
which might be available must receive the prior clearance of the
American or British naval authorities in Istanbul as to its sea-
worthiness.
Number of persons actually moved
Late In 1942 two groups of children transited Turkey en
route to Polestine, 50 from Hungary and 50 from Rumania.
According to information furnished by Mr. Barlas, the rep-
resentative in Turkey of the Jewish Agency from Palentine, the
total mumber of Jews to transit Turkey in 1943 on route from
Regraded Unclassified
176
- 5 -
Aris Europe to Palestine was 1,165. Details as to points of
origin are set forth below:
January-September 1943
Children up to 16 years of age
and accompanying adults from Hungary
125
Children up to 16 years of age
and accompanying adults from Rumania
74
199
Refugees from Bulgaria
150
Total
349
October-December 1943
Individually from Budapest
125
11
If
Bucharest
50
"
n
Sofia
B2
11
11
Athens
312
Total
564
Refugees sent to Cyprus from:
Rumania
180
Bulgaria
72
Total
252
1,165
The Jews listed above as coming from Athens consisted of per-
sons who had escaped from Greece in small boats, most of which
landed their passengers at Ismir where they were able to obtain
visas for Palestine under the Schedule of the Jewish agency and
to cross into Syria en route to Palestine.
In addition to this movement of Jews in transit through
Turkey, 2,138 Jews left Turkey for Palestine during 1943, accord-
ing to information supplied by Mr. Barlas.
The situation appears to be that the German control over the
exit of Jews from the various countries in southeastern Europe
is more stringently exercised in respect of the countries more
remote from Germany than those nearer to Germany. Thus at the
present time there are practically no Jews permitted to leave
Greece, although a few escape illegally. Occasionally, despite
the general prohibition, & few are permitted to depart from or
transit Bulgaria (53 Jews arrived in Istanbul on or about
February 15 from France); the Furanian authorities appear to
be willing to allow Jews to depart from Humania in some numbers;
and the Hungarian Government's attitude appears from here to be
nore liberal than that of the Rumanian Government (although
Transit to Turkey from both Humania and Hungary is hampered by
the Bulgarian attitude and the lack of transport).
Regraded Unclassified
177
- 6 -
According to information furnished me by Mr. Darlas, the
number of Jews in the Balkan countries at the beginning of the
war is estimated as follower
Bulgeria - 82,000 (of whom about 40,000 still remain
in Bulgaria);
Rumania - 800,000 (of whom about 266,000 are still
living in "Old Rumania"):
Yugoslovia - 75,000;
Greece - about 72,000 (of whom the vast majority were
deported to Poland).
With further reference to the Jews in Rumania, it is under-
stood that of the 180,000 who were expelled to Transnistrie
(mostly from Bessarabia and Bukowina) only 75,000 remain alive.
The present distribution of the balance of the 266,000 mentioned
above is estimated as follows:
Bucharest
100,000
Gelatz
25,000
Jasey
25,000
Bukowina
16,000
Elsewhere
25,000
Various efforts made by the Embassy to
assist in the matter
On April 23, 1942, I received the Department's telegram
No. 164, April 22, 4 p.m., requesting, at the solicitation of an
interested organization in the United States, that I endeavor to
obtain permission from the Turkish authorities for certain Jewish
refugees who had arrived in Istanhul from Humania on the ss MICHAI
on March 18 to land in Turkey in order to obtain visas to enter
Polestine. I ascertained, as reported to the Department in my
telegram 326, April 27, 12 noon, that the vestel mentioned had
already sailed from Istanbul for Haifa with her refugee passengers
on board and all her papers in order. I subsequently telegraphed
that it had been impracticable to comply with the Department's re-
quest, contained in its telegram above referred to, that the Embasay
inform it of themames of the refugees in question, as the names
were unknown at Istanbul (Embassy's 327, April 27).
In February 1943 the Department telegraphed to me regarding
a story which had appeared in The New York Times of February 13.
to the effect that the Rumanian Government had, according to neutral
sources, advised officials of the United Nations that it was pre-
pared to cooperate in transferring 70,000 Rumanian Jews from
Transnistria to any Mediterranean ports selected by the Allies.
(Department's 145, February 17.) I replied to the Department on
February 27 (my 337) that a representative of the Jewish Agency
for Palestine, Mr. Joseph Golden, had informed me that the
Now York Times despatch above mentioned was based upon the following:
Mr. Golden was visited on December 5, 1942, by a Dutchman who
resided in Bucharest and who was temporarily visiting in Istanbul.
This Datchman, whose name was Schmitt and who were the Balkan and
Turkish Director-in-Chief for Philip's Radio, had stated that he
brought & proposal from a person named Lecca who was said to be the
Fumanian Government official in charge of Jewish matters in
Rumania. This proposal was to the effect that the Rumanian Govern-
ment was prepared to consent to the departure of and provide ships
foRegraded Unclassified
178
- ? -
for the transportation to Palestine or other Allied porte of the
73,000 Rumanian Jews who remained from those previously trans-
ported to Transnistria, provided that the American and British
Governments agreed to & safe conduct for the vessels and to issue
the necessary visas. According to Schmitt, the representative of
the Jowish community in Ducharest who was appointed by the Gestapo,
stated that the Catholic Bishop of Bucharest had expressed his
readiness to pemit the use of the Vatican flag on the shipe and
would endeavor to obtain permission to use the International Red
Cross emblem. Golden forwarded the proposal on December 6 to the
Jewish Agency for Palestine in Jerusalem.
I reported subsequently (my 382, March 2, 1 aim.) that I
questioned the bona fides of the proposal described if for no
other reason than that the Rumanian Government obviously did not
possess the chipping facilities with which to transport 72,000
individuals.
On April 5, 1943, I called upon the Minister for Foreign
Affeirs and informed him that the American and British diplomatic
representatives in Ankara had been requested by their govern-
mente, in view of the reported persecution of the Jews in Bulgaria
end the intention of the Bulgarian Government to deport them to
Poland, to address an urgent appeal to the Turkish Government to
permit approximately 30,000 Jews to enter Turkey provided the
Bulgerian authorities would nermit them to leave Bulgaria. These
Jews, the Minister WAR informed, represented that part of the
Jewish population of Bulgario which was concentrated in towns and
it was mggested that they be accommodated in temporary camps in
a suitable area in Turkey, acquired and net aside for the purpose,
The Minister was informed that the American and British Govern-
ments were ready to assure the Turkish Government that all costs
connected with the entrance of these refugees and their mainten-
ance in Turkey would be defrayed by the two governments, which,
in addition, would supply to Turkey any additional food required
to feed them. It was stated further thatthe two governments also
would undertake to repatriate the refugees upon the conclusion of
the war.
In July 17, 1943, I telegraphed to the Department my tele-
gram No. 1245, July 17. 1 p.m.) that e representative of the
Embassy had contected Mr. Jacob Griffel who stated that he WRS an
official representative of the Agudas Israel Organization in
Palectine and also the representative of that organization to
the Associated Jewish Rescue Committee. Mr. Griffel informed
the Embassy representative that the main purpose of his mission
was to reecue Jews from Europe: he added thathe was interested
in two projects:
(1) To locate 700 Jews, families of persons already
in Palestine for whom the organization which he repre-
sented had received a blanket visa for Palestine. He
stated he intended to work through the Swiee Government
and the International Red Cross with a view to locating
these families and endeavoring to bring them to Pelestine;
and
(2) To assist about 20,000 Jewish familiescon-
centrated in Transnistria. Fe thought thatthe best
way to help these people was to send them money. He
said that his organization in New York would like to
send funde to Switzerland either for the purchase of
food and clothing to be sent to Transnistria or for
the obtaining Imoney to be sent there.
In October Regraded Unclassified
179
-8-
In October 1943 the Embassy received information from the
American Embassy in London of e rumor indicating that a ransom
traffic in refugee children through Turkey existed. Upon in-
vestigation of this rumor it was ascertained that there was no
foundation for it. I had confirmation of the lack of foundation
for this rumor from Dr. Golden of Istenbul, head of the Jewish
Relief Organization charged with assisting all Jewish refugees
who enter Turkey. Dr. Golden suggested thatthis rumor might
be the result of certain exasperating delays which were being
experienced in negotiations with the Bulgarian authorities for
permission for Jewish children to leave Bulgaria.
Turkish Jews in France
Another category of Jews in whom the Department and the
Embassy have been interested is the large number of Turkish Jews
in France.
It appears that Mr. Barlas, local representative of the
Jewish Agency for Palestine, received about the middle of
December, 1943, a telegram from Mr. Weizman, Jewish Agency repre-
sentative in Lisbon, stating that 10,000 Jews of Turkish origin
in France, having losttheir nationality owing to the provisions
of Turkish law, were in danger of deportation to Poland. Mr. Barlas
FRE asked to appeal to the Turkish authorities not to withdrew
recognition from these Jews. Mr. Barlas stated, upon going onto
the matter, that the Jews in France fall into two categories:
(A) Jews whose Turkish nationality is uncontested; these
Jews have been given full Turkish protection and have either
been repatriated to Turkey or have escapedpersecution.
(B) Jews descended from Jews who emigrated from Turkey
several generations ago and whose Turkish nationality has been
annulled as a result of the provisions of a Turkish law adopted
in 1928 providing that Turkish nationals residing abroad who fail
to register with the Turkish consulates for e period exceeding
five years may be deprived of their citizenship by the Turkish
Government (see NATIONALITY LAWS by Flourney and Hudson, Oxford
University Press, New York 1929, page 571).
This second category of Jewe (B) to whom it is understood
Turkish representatives in France have go far accorded 8 certain
measure of protection, is now threatened with deportation to
Poland.
In viewof the fact thatthese Jers no longer have Turkish
nationality and in view of the Department's recognition (Depart-
ment's telegram No. 67 dated January 25, 1944) of the fact that
as a consequence the Turkish Government 1s in no position to
extend protection to them, it is not to be expected that the
Turkish Government can officially make representations to the
Vidy Government on their behalf. It is understood, however,
that an official appeal is being made to the Vichy authorities
by the Turkish Ambassador to Vichy France, Sevki Berker, who
has shown himself sympathetically disposed in the past in re-
gard to Jewish maters. Possibly as the result of Mr. Berker's
representations B. party of 53 Jews arrived in Istanbul on or
about February 16th from France, having travelled by rail by
way of Milan, Vienna, Nish and Belgrede.
On January 10, 1944, the Department WRS informed (my
telegram No. 49, January 10, 3 p.m.) of an infomal conversation
whRegraded Unclassified
180
- 9 -
which I just had with the Turkish Minister of Foreign Affairs re-
garding several thousand Jewe of Turkish origin reported to be in
jeopardy in France. The Minister informed me thathe would take
whatever steps he found possible to afford protection to these
Jews and that, in so far as concerns those who were able to
establish Turkish citizenchip, he would demand the same treatment
for them as is accorded other Turkish citizens. With respect to
those who were unable to establish Turkish citizenship, he said
that he WAS doubtful that the Vichy authorities would recognize
his right to intervene on their behalf.
In complience with the Department's instructions of Jenuary
25, 1944 (Department's telegram 67, January 25, 11 a.m.) that I
express to the appropriate Turkish officials the Department's
hope that for humenitarian reasons they would b able to afford
protection to as many as possible of these Jews of Turkish origin
in France and would beliberal in defining their citizenship status,
I discussed this matter with the Minister of Foreign Affeirs (as
reported in my telegram No. 151, January 18, 10 p.m.) and urged
him to extend to them the maximun protection of the Turkish Govern-
ment. He assured me that of humanitarian grounds the Turkish
Government would exert itself to the ntmost to afford protection
in these cases.
It may be mentioned in this connection that the American
Consulate General at Istanbul received an inquiry from the
Department in December 1943 (Department's 319, December 29,
10 p.m.) regarding reports thatPeragusyan Jews confined in the
concentration camp at Vittel, France, were threatened with de-
portation to Poland because of A report that the Paraguayan
Government had revolced their citizenship. In reply the Consulate
General telegraphed (its telegram No. 4, Jamuary 4, 1944) that
the local Jewish representati ves of Agudas Israel and of the
Jewish Agency had been notified that the Paraguayan Government
had agreed not to revoke the citizenship of Paragiayan internees
in this concentration camp.
Unavailabiltiy of vessels to carry
refugees from Rumanian or Bulgarian ports
As has been indicated above, one of the principal obstacles
to the movement of Jews from the Axis countries to Turkey has
been the problem of transport.
The Bulgarian authorites since April 1943 have practically
prohibited the departure of Jews across the Bulgarian-Turkish
frontier, premumably as the result of German ection. As a con-
sequence efforts have been made to arrange for the transportation
of Jews from the Rumanian port of C onstenza to Turkey by boat.
Efforts which have been made in this direction have to date been
without result. Two Rumanian flage vessels, the S. S. TRANSYLVANIA
and the S.S. BESSARABIA, which have been lying idle in the harbor
of Istenbul for nearly three years, have been considered in this
connection but to date their use has been precluded either by the
attitude of the Rumanian Government in fact, the German Government-
or more recently by the unavailability. of funds to effect the
proposed purchase.
As & result of B. request made of the Turkish Ministry of
Foreign Affairs by the British Ambassador and myself, the Turkish
Government took up with the Rumanian Government the matter of
obtaining these two vessels on charter for the purpose indicated.
In due coirse the reply was received that the Rumanian Government
was not Regraded Unclassified
181
+10a
was not willing to permit the vessels to be chartered for this
purpose and the Embasey was given to understand that the refugal
was the result of action by German authorities in Rumania.
I have recently been informed by Mr. G, L Simond, International
Red Cross delegate in Turkey, that Colonel Teoldorescu, Rumanian
Military, Naval and Air Attache in Ankara, came to see him early
in February 1944 to propose that the Infernational Red Cross pur-
chase for the sum of 1,700,000 pounds sterling the two Rumania
vessele in Istanbal, the 88 TRANSYLVANIA and as BESSARABIA: that
he had submitted the matter to the International Red Cross Head-
quarters in Geneva by telegraph and that he has subsequently re-
ceived & reply stating that funds for their purchase are not
available.
The question of obtaining ships from the Anglo-American
shipping pool, possibly by transfer to the UNRRA for donation to
the International Red Cross which could man the ships with neutral
crews, has been raised and Mr. Murray Gurfein of the Office of
Strategic Services cabled from Istanbul the suggestion, as a per-
sonal one, to Mr. Edwin Goldwasser, New York, at the end of
January 1944. He suggested that such ships, the property of the
International Red Cross under Swise registry, could perform many
errands of mercy in addition to the specific one of assisting in
the proposal to evacuate 5,000 Jews, principally children, from
Rumania, Hungary and Bulgaria.
It may be pointed out in this connection that the question
of the nationality of the crews of vessels proceeding to a
Rumanian or Bulgarian port to evacuate Jews is likely to present
difficulties unless the crews of such vessels are citizens of
neutral countries. The British authorities, for example, might
object to a Bumanian crew bringing a vessel into Palestinian
waters and it is to be expected that the Rumanian and Bulgarian
authorities would similarly object to & crew of Allied national ity
entering their waters.
On Jamary 29, 1944 (my telegram No. 153) I advised the
Department of receipt of information from the representative of
the Jewish Agency for Palestine in Turkey, Mr. Oh. Barlas, that
a Portugnese flag vessel under charter to the Joint Distribution
Committee was then en route from Lisbon to Palestine with
approximately 700 Jewish refugees and I suggested thatthe
Department might wish, in view of the fact that the principal
difficulty in resouing more than & limited number of Jews from
Transmistrie 10 being occasioned by the lack of transportation,
be made to continue the charter of the vessel with & view to its
to suggest to the Joint Distribution Committee that efforts might
proceeding from Palestine to Constanse in order to evacuate from
Transnistria the Jewish refugees there.
Recently there has also been under consideration a proposal
to obtain the use of B Turkish vessel for the purpose indicated.
The vousel under consideration has been the SS VATAN. The
possibility of obtaining the use of this vessel was discussed
with se on February 8. 1944, by Dr. Issac Herzog. Chief Rabbi of
Palestine, Dr. Mordecai Klissh, who accompanied him from Palestine,
and Mr. Barlas, the representative in Turkey of the Jewish Agency
for Palesine. I suggested to them thatthey attempt to see
both the Minister for Foreign Affairs and the Minister of
Communications with a view to obtaining the use of the boat,
stating.
Regraded Unclassified
182
-11-
stating that I thought the most feasible means of obtaining the use
of the boat for & limited period would be to start with & request
that it be made available for only one trip to Constansa. The
Turkish Minister for Foreign Affairs vas unwilling to see the Chief
Rabbi. stating that as a matter of principle be could not receive
him or any other eccliastical dignitary. The Foreign Minister
suggested, however, that & call be made on Mr. Feridun Demal Erkin,
Assistant Secretary General of the Ministry, upon whom Mr. Eliash
and Mr. Barlas called on February 11. When they first broached the
matter of obtaining the use of & Turkish vessel for this purpose,
Mr. Erkin's attitude was negative, the gentlemen named infomed me,
on the ground of the transport difficulties with which the Turkish
Government 1s faced, and he suggested that they seek to obtain the
use of & suitable vessel used by the Red Mr. Erkin's
attitude was, however, somewhat more favorable when the proposal
was made to him that the vessel be made available merely for one
trip and he then promised to give a definite decision on this
matter on February15. In the course of his discussion with these
gentleman Mr. Erkin indicated, they informed me, that he is worried
by the delays at Istapbul of refugees in transit because of a
failure on the part of the British authorities there to issue
promptly the necessary entry visas for Palestine. The Embassy has
checked on this point and found that there have been very few cases
of delay at Istanbul and these few have been for purely personal
reasons on the part of the individuals concerned. Nevertheless, as
a result of the statement made by Mr. Erkin to Mr. Kliash and
Mr. Barlas and his suggestion that the British Embassy inform the
Ministry for Foreign Affairs that visas for Palestine would be
granted within 24 hours on arrival at Istanbul, an officer of the
British Embassy has subsequently informedme that an oral statement
to the effect indicated would be made to the appropriate official
of the Ministry. As a result, it is expected that the number of
visas granted by Turkish consular officers in Bulgaria, Rumania
and Hungary will be increased and that the number arriving in
Turkey will consequently increase. provided the Bulgarian bottle-
neck can be broken or provided evacuation by sea can be effected
On February 14, 1944, a member of my staff interviewed the
official in the Ministry for Foreign Affairs who is handling this
whole question and, in the course of their conversation, informed
him of the Embassy's interest in a Turkish vessel being made
available the VATAN was mentioned-for this purpose. The official and
the risk of loss involved, it was unlikely that a Turkish the
in question said he thought. in view of the shipping shortage vessel
could be made available. He raised the question of whether
American Government or Allied Governments could not make a vessel out
available to some international relief organization to carry
the proposed voyages.
The Turkish decision in the matter was in the negative.
January 31, 1944, that a lack of trasportation facilities rather to
The Department will recall from my telegram No. 159 dated
than unwillingness on the part of the Turkish authorities of
an was the chief difficulty in effecting the rescue tele- Jews
cooperate Arie cointries. The statement was also made in the
from under the reference that in by opinion unless the transportation for the
facilities gram were augmented by vessels especially chartered the rail
facilities purpose could be materially increased. I reported also to the
it USE mostunlikely that in present 8 nditions that
cooperate but that they insisted that under existing conditions
Turkish authorities had repeatedly assured no of their desire
they were unable to increase rail facilities.
It will
Regraded Unclassified
183
- 12.
It will be seen from the foregoing that despite the most
strenuous and continuous efforts on the part V the Embassy to
facilitate the movement of oppressed Jews from the Axis countries
to Palestine, these efforts have to date met with only limited
success, primarily because the persons whom it is desired to
move are on territory controlled by the enemy who does not per-
mit them to leave for abroad, and secondarily because of trans-
portation difficulties. With regard to this second factor it
may be remarked again that the Turkish guthorities have been
willing to grant more visas for persons to transit Turkey than
have been utilized by persons able to leave enemy territory.
Approximately three-fourths of the Jews arriving in Turkey from
anemy territory have come by rail; the remainder have escaped
from Greece by boat. (See page 5, supra.) If a vessel or
vessels become available for the transportation of Jews by water
from Rumanian or Bulgarian ports to Turkey, it is not improbable
that last minute difficulties will arise in connection with their
actual departure from enemy territory, since as yet there is no
guarantee that they will be allowed to depart from such territory
for Turkey.
It 18 to be remembered, in considering the Turkish attitude
with regard to this matter, that Turkey's transportation system
has never been adequate from the western viewpoint and is far
from being adequate in the present situation when Turkey's entry
into the war has until very recently been increasingly imminent.
There is only one through single track main line from Haydar Pasa
(Istanbul) to Aleppo via Ankara and this line has been overburdened
with British and American (mostly Lend-Lease) shipments, consisting
largely of war materials, moving in a northerly direction and of
Turkish exports, consisting lamply of Turkish products bought by
the United States and the British Empire both for supply and pre-
emptive reasons, moving in & southerly direction. The load which
the locomotives have been carrying through the Taurus mountains,
through which this line runs, has consistently been the saximum
possible, with the result that the addition of even one extra
car filled with refugees to a particular train has presented a
difficult mechanical problem. Notwithstanding, as has been point-
ed out before, the Turkish authorities have actually agreed to
furhish one car every 10 days to transport 75 children ane
accompanying adults from Haydar Pass to Aleppo. With all rolling
stock burdened to the maximum, it has been impossible-and in
fact unnecessary since the small number of refugees arriving in
Turkey has been readily handled--to increase the number of trains
to houl refugees.
Should it become possible to move a large number of refugees
from Rumanian or Bulgarian Black Sea ports to Istanbul their
further transit beyond Istanbul will, of course, present diffi-
culties but it is hoped that sach difficulties can be overcome
either by prividing transportation by vessel ayond Istanbul to
6 Palestinian port or by moving them gradually by rail from
Istanbul via Adada and Aleppo to Palestine.
If some scheme is eventually worked out by which the refugees
can be moved by water from the ports in question, it may be found
desirable to discharge them from the vessels at Haifa, rather
than at Istanbul, thereby avoiding the difficulties which would
arise out of 8 stay in Istenbul and the necessity of arranging
rail or water transport layond Istanbul. Any plans that may be
drawn up for the use of vessels only as far as Istanbul should
include provision for furnishing the refugees food and shelter
while in Turkey.
Aeide
"Regraded Unclassified
184
- 13 -
Aside from the Jews who have managed to reach Turkey from
Axis countries (some legally and some illegally as eet forth above)
& considerable number of Greeks have succeeded in reaching Turkey
from nearby Greek islands. The exact number is not known but it
1s considerable. Most of them have proceeded from Turkey to
Syria. The movement of persons of this category is more or less
continuous, al though the mumber moving at any one time is small.
The number of refugees of other national or racial groups reaching
Turkey is negligible.
In the many discussions which I have had on this subject
with the present Prime Minister and former Minister for Foreign
Affairs, Mr. Saracoglu; with the present Foreign Minister and
former Undersecretary for Foreign Affaire, Mr. Menemenooglu; and
with other high Turkish officials, I have invariably endeavored
to persuade them to lend every possible assistance to achieve the
desired and, emphasizing the vital humanitarian principles in-
volved and referring to the self-interest involved (in that any
assistance granted would tend to present Turkey in a favorable
light abroad). The expressions and attitude of these officials
have invariably been one of the desire to cooperate and aid in
every way, despite the many and unavoidable difficulties with
which their country has seen and is faced.
As I informed the Department in my telegram No. 270 of
February 16, 1944, I am delighted with the assignment to my
staff in the capacity of attache of Mr. Ira Hirschmann for the
special purpose of handling matters pertaining to these refugees.
I am most favorably impressed with his initiative and quick grasp
of the situation, do well as with his general qualifications and
personality. I shall of course extend every possible assistance
to him in this work.
Respectfully yours,
Laurence A. Steinhardt
File No. 840.1
LAS/mp
To Department in original and hectograph
Regraded Unclassified
185
NOT TO BE RE-TRANSMITTED
COPY NO. 12
BRITISH MOST SECRET
U.S. SECRET
OPTEL No. 58
Information received up to 10 a.m., 20th February,
1944.
1. NAVAL
HOME WATERS. One of H.M. Submarines sank a 6,000 ton
ship in BOKN FJORD on 7th and possibly damaged a 3,000 SKUDESNES. ton ship
in One of H.M. Sloops damaged by U-boat S.W. of I.ELAND.
BOMMEL FJORD on 12th, as well as another ship in
20th. 19th. One of H.M. Frigates and one of H.M. Sloop each sank
U-boat off USHANT.
MEDITERRANEAN. 18th. Port of ANZIO temporarily
closed for minesweeping, but 3,179 tons discharged.
EAST INDIES. One of H.M. Submarines sank a small
vessel north of SUMATRA on 5th and a 7,000 ton ship (possibly a
warship) on 12th.
2. MILITARY
ITALY. To noon 19th. Gains in CASSINO area were con-
solidated feature lost by 4th Indian Division and CASSINO Railway Station In
and held against counter attack except for a hill
where 2nd New Zealand Division were forced to withdraw.
ANZIO attacks Beachhead but there has been a slight withdrawal by British troops
battle front remains intact after heavy enemy
south of CARROCETO.
In ARAKAN localised fighting continues. VALLEY. Ad-
vances have BURMA. been made by our troops down the KALADAV
3. AIR OPERATIONS
LEIPZIG fields in 823 HOLLAND (80 16, Military objectives in N.
WESTERN missing), BERLIN 15 (one missing), FRANCE AACHEN 3, 3, sea- air-
FRONT. 19th/20th. Aircraft despatched:
mining 49, Intruders 30.
ITALY. 18th. 216 Allied fighters patrolled battle
area.
BURMA. 18th/19th. Liberators dropped 46 tons on
MANDALAY Railway Yards.
TREASURY DEPARTMENT
1944 FEB 2l PM 2 25
SECRETARY OF TREASURY
Regraded Unclassified
186
MEMORANDUM
FEB 21 1944
TO:
Mr. Bell
FROM: Mr. Paul
Attached hereto is a memorandum deal-
ing with the desirable provisions of the
pending tax bill. The memorandum points
out that if the President vetoes the tax
bill, there is no vital need for any imme-
diate legislation. If, however, conditions
are such, after a veto, as to make immediate
legislation feasible, there are a number of
provisions which the Treasury could suggest
be handled in such fashion.
Bm
Regraded Unclassified
187
MEMORANDUM
PROVISIONS IN THE PENDING TAX BILL
AS RESPECTS ANY IMMEDIATE NEED FOR LEGISLATION
I. If the President vetoes the tax bill, there is
no vital need for any immediate legislation with
respect to any of the desirable technical provi-
sions of the bill.
II. There are, however, a number of desirable tech-
nical provisions in the bill with respect to
which it would be helpful if they could be enacted
into law as early as possible:
A. Powers of Appointment -- Section 505 of the
bill extends from March 1, 1944 to January 1,
1945 the time within which a power of appoint-
ment may be released without the release
constituting a taxable transfer of the prop-
erty. This extension is necessary as taxpayers
have relied upon it. While it would be helpful
to have the extension become law prior to
March 1, the extension may be made retroactively
by legislation subsequent to that date. The
taxpayers' worries with respect to the possibil-
ity of an extension may be allayed by an
announcement.
B. Statute of Limitations -- Section 513 of the
bill extends the statute of limitations in the
case of various corporate taxes in certain
cases. This provision was inserted at the
request of the Treasury. While it would be
helpful if the extension became law prior to
March 15, 1944 (at which time the statute of
limitations with respect to the year 1940
would otherwise expire), the extension could
be made retroactively by legislation after
March 15. In such a case, it would be desir-
able that notice be given that the Treasury
would request such legislation.
Regraded Unclassified
188
- 2 -
C. Provisions Affecting the 1944 Declaration
Forms -- A number of the provisions of the
tax bill affect the declaration forms to
be filed on April 15, 1944. These are:
Disallowance of deduction for Federal
excise taxes; repeal of the earned income
credit; establishment of a flat three per-
cent Victory tax rate; establishment of
July 1 as the date to determine the tax-
payer's status for exemption purposes;
revision of the penalty provisions respect-
ing the estimated tax. If these provisions
are ultimately to become law for the year
1944, it would be helpful if the declaration
forms could reflect the changes. However,
this would require immediate legislation
since otherwise the printing of the forms
would be delayed too long. The prospects of
sufficient immediacy of such legislation are
so slight that it is desirable to proceed with
the printing of the declarations on the basis
of existing law. The change in tax burden in
each individual case that would result from
the enactment of these provisions is not very
large. Consequently, it would be all right
to adopt these provisions later in the year
and enactment now is not essential. The
revision in the penalty provisions would have
permitted taxpayers to avoid any penalty for
underestimation by relying on last year's
income. It would be helpful if taxpayers
could fill out their 1944 declarations on the
basis of such a provision. While legislation
prior to April 15, 1944 would be helpful in
this regard, it is possible that an announce-
ment that such legislation would be requested
later by the Treasury would serve just about
the same purpose.
D. Social Security Increase -- While the short
period elapsing between a veto and March 1,
1944, when the two percent rate would go into
effect, might cause employers some difficulty
Regraded Unclassified
189
- 3 -
in adjusting their payroll procedures to
the higher rate, it is not believed that
the difficulties are such as to warrant
the Department's suggesting a statutory
extension of the one percent rate until
April 1, 1944.
E. Repeal of the Second Windfall Provision --
The bill contained a provision repealing
"the second windfall provision" under the
Current Tax Payment Act. If the second
windfall is to be repealed, it would be
desirable that the repeal occur prior to
March 15, 1944 Bo as to make it unnecessary
for taxpayers subject to the provision to
fill out the portion of the 1943 return
relating to the second windfall. However,
if no legislation is desired at this time,
the repeal could be postponed until later
in the year.
F. General Technical Provisions -- There are
a number of technical provisions in the bill
which represent desirable improvements in
the present law. However, their adoption
could safely be postponed until later in the
year. The provisions in which the Treasury
are principally interested are: Treatment
of 1941-1942 and 1943-1944 fiscal years;
change of the withholding rate for aliens
brought in by the War Manpower Commission;
relief from double taxation on estates and
trusts; treatment of mutual fire insurance
companies issuing perpetual policies; proper
treatment of 80 percent credit in connection
with public utility dividends, and revision
of credit against preferred tax; administra-
tive corrections in the operation of the post-
war credit under the excess profits tax; term-
ination of Governmental exemption in connection
with certain excise taxes; revision of credit
against Federal unemployment taxes for late
payments to State funds; operation of renego-
tiation provisions under Current Tax Payment
Regraded Unclassified
130
- 4 -
Act; provision dealing with acquisitions
of property to evade taxes (there is a
question as to the desirability of this
provision).
III. There are a number of provisions in the bill
which combine to produce an increased revenue
yield of over two billion dollars. These are:
repeal of the earned income credit, disallow-
ance of deduction for Federal excise taxes,
increase in excess profits rate, various excise
tax increases. The first two are not only
revenue but simplification provisions, so that
their enactment is desirable. The desirability
of securing additional revenue from the other
sources is in the most part dependent upon the
contents of a veto message.
IV. As indicated in Point I, there is no vital need
for any immediate legislation, so that if the
desirable policy is to avoid immediate legisla-
tion, there is no obstacle to such a policy. If,
however, conditions are such after a veto as to
make immediate legislation feasible, there are
a number of provisions, as indicated in Points
II and III, which we could urge should be enacted
now. Whether or not we would urge that all of
these provisions be enacted now in such a situ-
ation depends upon time factors and other consid-
erations which can only be determined after the
reaction to a veto message.
Regraded Unclassified
TO:
191
THE SECRETARY:
Here are two memoranda from
Sullivan and Paul on the situa-
tion with respect to the Revenue
Bill. I have an understanding
with every one here that there
will be no discussion of this
problem until your return, or,
if it becomes necessary to
discuss it, until we contact
you by telephone.
I expect to write you tonight
giving some idea as to the
financing.
DWB
February 21, 1944
Office of the Under Secretary
n
192
All
MEMORANDUM
February 21, 1944.
TO:
Mr. D. W. Bell
JLS
FROM:
Mr. Sullivan
You will recall that at luncheon on Friday you and I
discussed with Mr. Graves and Mr. Cann the arrangements the Bureau
of Internal Revenue was making for the printing and distribution
of forms.
The Bureau made its plans on the assumption that the
Revenue Act of 1943 would become law, and the printing of the
Estimated Declarations has already been started. These forms
vill be in the hands of the taxpayers in ample season for filing
on April 15th. It has been agreed that this Estimated Declaration
and the accompanying quarterly installment would be sent to the
collectors by April 15th rather than March 15th.
To protect the taxpayers and itself in the event that
the Revenue Act of 1943 did not become law, the Bureau has pre-
pared plates for the printing of Estimated Declarations based on
the Revenue Act of 1942. These plates are all ready for shipment,
and if the Revenue Act of 1943 is vetoed, these plates will be
sent immediately to the printers. We hope that we will be able
to distribute these forms to the taxpayers for filing on
April 15th, but the length of time the taxpayers will have them
will necessarily be shorter than the time they would have the
Declaration forms based on the Revenue Act of 1943.
You will recall that Mr. Graves and Mr. Cann agreed
with us that it would be unfortunate to postpone the filing of
the Declaration beyond April 15th and that Mr. Graves told us
he thought it would be possible to stick by the April 15th date.
Regraded Unclassified
193
February 21, 1944
MEMORANDUM FOR THE SECRETARY
From: Mr. Paul
We are continuing to work closely with the Bureau
of Internal Revenue on tax simplification proposals.
Mr. Stam served a subpoena on the Bureau asking for
their simplification suggestions. The response to this
demand has been postponed until Thursday, February 24,
to make sure that there will be no conflict between the
suggestions made and the President's message to Congress
on the tax bill.
We have arranged with the Bureau that the Treasury
will submit an objective analysis of the simplification
problem and of various possible ways of meeting it,
indicating the effects on tax burden distribution and
other considerations. This would be sent to Mr. Stam
with copies to Chairman Doughton end Senator George at
the same time that the Bureau submits its suggestions.
Reference would be made in both the Treasury and the
Bureau memoranda to the fact that the Treasury and the
Bureau had worked together closely on the problem and
that the memoranda reflected their combined views.
The Bureau suggestions are to be couched in tenta-
tive form and are not to be submitted as recommendations.
This will hold the matter open for further study and
analysis and avoid too much of a commitment at this stage.
And
Regraded Unclassified
nk
194
THE UNDER SECRETARY OF THE TREASURY
WASHINGTON
February 21, 1944.
MEMORANDUM TO THE SECRETARY:
1. REFUNDING
Haas, Murphy and I conferred this morning with Eccles,
Sproul, Rouse and Piser on the refunding of the $4,700 million
of bonds and notes maturing between March 14th and June 16th.
We all agreed that we should refund this entire lot in one
operation, to be offered about March 2nd; that we would leave
the books open for the larger subscribers for a period of about
a week and leave them open for the balance of the time up to
March 15th for those holding $100,000 or less. There was one
suggestion which we want to further explore that the books
be left open for the small holder of, say, $10,000 for the entire
period up to the maturity of the security. We all agreed, subject
of course to changes in the market between now and the date of
the offering, that there should be offered in exchange for these
outstanding securities a 1-1/2% note maturing either in June or
September 1948, and the 2-1/4% bond of 1956-59 and the 2-1/2%
bond of 1965-70 offered in the drive. We agreed that there should
be no indication to the market regarding this refunding until
possibly Monday, the 28th, at which time you can announce at
your press conference that. we intend to offer a refunding opera-
tion on the 2nd. Table of securities to be refunded is attached.
2. FIFTH WAR LOAN
Present cash position estimates indicate that we will have
8. cash balance going out of April of about $9,500 million, and
going out of May of about $4,700 million. This means that we
should have some financing in June. I have scheduled a Fifth War
Loan for June of $14 billion. If we do not have another loan
drive until after election, it would be necessary to raise at
least $10 billion through bank financing in, possibly, August
and October. Even with this our balances would get down to
between $5 and $6 billion in September and possibly below $5
billion in October and may even go below $2-1/2 billion if the
drive doesn't start until the middle of November. At any rate
I am certain that the Fifth War Loan Drive shouldn't start later
POLVICTORY
BUY
UNITED
STATES
WAR
BONDS
AND
STAMPS
Regraded Unclassified
195
- 2 -
than June 15th and preferably June 1st and it should not be for
less than $14 billion and if we can make it more, it would reduce
our bank financing.
3. ALTERNATIVE
I have been turning this possibility over in my mind --
We have maturing on May 1st a certificate of indebtedness in the
amount of $1,600 million, When we roll this over we could add
another $1,500 million, which would give us some additional cash.
Then make the Fifth War Loan a $20 or 322 billion operation with
the right in every subscriber who subscribes for $100 or more to
pay for those securities in installments over a period of, say,
five months. This should materially increase the purchases from
individuals, insurance companies and others. If we could be
successful in a War Loan Drive of this size and raise as much as
$22 billion, I believe that we could, with about the same amount
of bank financing as under 2 above, go into December and possibly
January before we have the Sixth War Loan. It would have the
advantage also of putting the drives on a basis of three a year.
I talked a little about it last night with Ted Gamble and he
thought it had great possibilities, if we could work out the
installment festure. I am working on that and am not quite
ready yet, but I hope by the time you get back to say whether
the mechanics can be developed.
Mr. Paul didn't get his memorandum on the Tax Bill to me
in time to include with my note of today. I am therefore attaching
it to this letter. (actaches Parks AJu 2/2/112)
DWB
Regraded Unclassified
196
SECURITIES (EXCLUDING CERTIFICATES
OF INDEBTEDNESS) MATURING OR CALLABLE
BETWEEN MARCH 1 AND JUNE 30, 1944
(In millions of dollars)
Callable
Total
Issue
or
outstanding
maturity
date
Treasury notes, 1% Series B-1944
March 15
$ 515
Federal Farm Mortgage Corporation
bonds, 3-1/4% 1944-64
March 15
95
Reconstruction Finance Corporation
Notes, 1% Series W
April 15
571
Treasury Bonds, 3-1/4% 1944-46
April 15
1,519
Home Owners Loan Corporation Bonds,
3% 1944-52
May
1
779
Federal Farm Mortgage Corporation
Bonds, 3% 1944-49
May 15
835
Treasury Notes, 3/4% Series
A-1944
June 15
415
$4,729
February 21, 1944
Regraded Unclassified
197
IMMEDIATE RELEASE
FEBRUARY 21, 1944
2848
EXECUTIVE ORDER
9425
ESTABLISHING THE SURPLUS WAR
PROPERTY ADMINISTRATION
By virtue of the authority vented in me by the Consti-
tution and statutes of the United States, particularly the First
War Powers Act, 1941, 8% President of the United Sintes and BB
Commander in Chief of the Arry and Hary, it 10 horeby ordered
as followe:
1. There 1a horsby establiched In the (ffice of War
Mobilization, the Surplus War property Administration (hereinafter
referred to 58 the "Administration", U.O powere and functions of
to
the
of
the
Director
of
War
Mobilization, which, subject shall be emploised by urplus War Property Admin-
istrator (hereinafter referred to LE the "Administrator"), to be
appointed by the Director of War Mcbilization.
2, With the ansistance of a Surplus War Property Policy
Board, composed of & representative from each of via following:
State Department, Treasury Department, Wer Depairtment, Navy Depart-
ment, Justice Depariment, Reconntruction Finance Corporation, Smaller
War Plants Corporation, United States Maritime Commission, War Pro-
duction Board, Buroau of the Budget, War Food Administration, Federal
Works Agency, Civil Aeronautics Board, and the Foreign Economic
Administration, it bheal be the function of the Administration, to
the full extent that such natters are provided for or permitted by
law:
(a) To have goneral supervision and direction of
the handling and disposition of surplus war property.
(b) To have general supervision and direction of
the transfer of any surplus war property in the posses-
sion of any Government agency to any other Government
agency whenever in the judgmont of the Administration
such transfer is appropriate.
(c) Unless otherwise directed by the Director of
War Mobilization, to accion, so far so it is deemod
feasible by the Administration, surplus var property
for disposition, GB follows: concerner goods to the
Procurement Division of the Department of the Treasury;
capital and producors' goods, including plants, equip-
mont, materials, scrap and other industrial property,
to a subsidiary of the Reconstruction Finance Corporation,
created pursuant to Soction 5d (3) of the Reconstruction
Finance Act, as amonded; ships and maritime proporty to
the United Statos Maritime Commission; and food to the
War Food Administration; provided that surplus var prop-
erty to be disposed of outsido the United States, unless
otherwise directed by the Diroctor of War Mobilization,
shall be assigned, 80 far as it 1a doomed feasible by the
Administration, to the Foreign Economic Administration.
3. All functions, powers, and dutios relating to the
transfer or disposition of surplus var property, heretoforo con-
forred by law on any Government agency may, to the extent necessary the
to carry out the provisions of this order, be oxercised also by
Administration.
directions necessary to effectuate the purposes of this order; and
4. The Administrator may proscribe regulations and issue
no orty in contravention thereof. Each Government agency shall submit
Government agency shall transfer or dispose of surplus var prop-
Regraded Unclassified
- 2 -
such information and reports with respect to surplus war property
and in such form and at such times as the Administrator shall
direct. When requested by the Administration, a Government agency
shall execute such documents for the transfer of title or for any
other purpose er take such steps as the Administration shall
determine to be necessary or proper to transfer or dispose of
surplus war property or otherwise to carry out the provisions of
this order.
5. The Administrator may perform the functions and exer-
cise the powers, authority, and discretion conferred on the Adminis-
tration by this order by such officials and such agencies and in
such manner as the Administrator, subject to the provisions of this
order, may dotermine. In carrying out the purposos of this order,
the Administration may utilize the services of any other Government
agency. The Administration, within the limit of funds which may be
made available, may employ necessary personal and make provision
for supplies, facilities, and services necessary to discharge the
responsibilities of the Administration.
6. As used in this order:
(a) "Government agency" boans any executive depart-
ment, independent establishment, agency, commission, board,
bureau, division, administration, office, service, inde-
pendent regulatory commission or board, and any government-
owned or government-controlled corporation.
(b) "Surplus War Property" means any property, real
or personal, including but not limited to plants, facili-
ties, equipment, machinos, accessories, parts, assemblies,
products, commodities, materials, and supplies in the
possession of or controlled by any Government agency, whether
new or used, in use or in storage, which are in excess of
the needs of such agency or are not required for the perform-
ance of the duties and functions of such agency and which are
determined, subject to the authority of the Office. of War
Mobilization, to be surplus by such agency.
7. All prior Executive Orders, in BO far as they are in
conflict herewith, are amended accordingly.
FRANKLIN D. ROOSEVELT
THE WHITE HOUSE
February 19, 1944.
Regraded Unclassified
198
TREASURY DEPARTMENT
OFFICE OF THE SECRETARY
February 21, 1944.
CONFIDENTIAL
Received this date from the Federal Reserve Bank
of New York, for the confidential information of the
Secretary of the Treasury, compilation for the week
ended February 9, 1944, showing dollar disbursements
out of the British Empire and French accounts at the
Federal Reserve Bank of New York and the means by
which these expenditures were financed.
EmB
Regraded Unclassified
199
FEDERAL RESERVE BANK
OF NEW YORK
February 18, 1944.
CONFI DENTIAL
Dear Mr. Secretary:
Attention: Mr. H. D. White
I am enclosing our compilation for the week ended
February 9, 1944, showing dollar disbursements out of the
British Empire and French accounts at this bank and the means
by which these expenditures were financed.
Faithfully yours,
/s/ L. W. Knoke
L. W. Knoke,
Vice President.
The Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington 25, D.C.
COPY
Regraded Unclassified
..N.JYSIS OF BRITISH AND FREECH ACCOUNTS
Strictly
(In Hillions of Dollars)
Week Ended February 9, 1944 Confidential
BANK OF ENGLAND (BRITISH GOVERNMENT)
BANK OF FRANCE
PERIOD
DEBITS
CREDITS
Net Incr. (+)
Net, Incr. (+)
Gov't
Transfers to
Proceeds of
Transfers
Sales of
Other
or Decr. (-)
Total
Total
or Decr. (-)
Expendi-
Official
from
Securities
Official
Total
Total
Credits
in 0 Funds
Debits
Credits
in C Funds
tures
Canadian
Other
(Orficial)
Australian
Debits
(a)
Account
Debits
Credits
Gold
(b)
Account
(c)
(d)
(e)
(e)
(d)
First year of war (g)
1,793.2
605.6
20,9
1,166.7
1,828,2
1,356,1
52.0
3.9
416.2
+ 35,0
866.3(f)
1,095,3(f)
+ 299.0
Jar period through
December, 1940
2,782,3
1,425.6
20,9
1,335.8
2,793,1
2,109.5
108,0
14,5
561.1
+ 10,8
878.3
1,098.4
+ 220.1
Second year of war (h)
2,203,0
1,792.2
3.4
407.4
2,189.8
1,193.7
274.0
16.7
705.4
- 13.2
38.9
8,8
- 30.1
Third year of war (i)
1,235.6
904.8
7,7
223.1
1,361.5
21,8
5.5
57.4
1,276.8
+ 125,9
18.5
4.4
- 14.1
Fourth year of war(j)
764.0
312.7
170.4
280.9
1,072.3
1
0.5
155.1
916.7
+ 308.3
10.3
1,0
- 9.3
1943
September
49.4
16,8
10,6
22,0
86,2
-
15.0
71.2
+ 36,8
-
-
-
-
October
38,2
16,0
-
22,2
115,4
-
-
40.5
74.9
+ 77,2
-
-
-
November
65.9
42.4
5,9
17,6
89.0
-
-
3.5
85.5
+ 23,1
-
-
-
December
98.1
16.3
-
81,8
134,5
-
-
36.5
98.0
+ 36.4
-
-
I
1944
January
44.8
22.2
10.6
12.0
127.5
-
-
1.0
126.5
+ 82.7
-
-
-
February
March
April
May
the
July
I
August
Week Ended
January 19, 1944
10.1
6.9
0.3
2,9
66.3
-
-
-
66.3
+ 56.2
-
-
-
January 26, 1944
5.1
2.5
-
2.6
6.5
-
-
-
6.5
+ 1.4
-
-
-
February 2, 1944
17.0
2.8
9.6
4,6
15.7
-
-
6.0
90%
- 203
-
-
-
February 10 1944
61.4 (1)
Tal
-
54+3 (2)
32.8
(k)
-
-
15a0
17.8(k)
- 28.6
-
.
-
Since Outbreak of Mar
See attached sheet for footnotes,
$19.6 million
$27.6 million
Ingland (through June 1940 to Earch 12, 1941) $54.9 million
England (since March 12, 1941) $20.5
million
Regraded Unclassified
(a) Includes payments for account of British Ministry of Supply Mission, British Supply Board, Ministry of Supply Timber
Control, and Ministry of Shipping.
(b) Estimated figures based on transfers from the New York Agency of the Bank of Montreal, which apparently represent the
proceeds of official British sales of American securities, including those effected through direct negotiation. In addition
to the official selling, substantial liquidation of securities for private British account occurred, particularly during the
early months of the war, although the receipt of the proceeds at this Bank cannot be identified with any accuracy. According
to data supplied by the British Treasury and released by Secretary Morgenthau, total official and private British liquidation
of our securities through December, 1940 amounted to $334 million.
(c) Includes about $85 million received during October, 1939 from the accounts of British authorized banks with New York banks,
presumably reflecting the requisitioning of private dollar balances. Other large transfers from such accounts since October,
1939 apparently represent current acquisitions of proceeds of exports from the sterling area and other accruing dollar
receipts. See (k) below.
(d) Reflects net change in all dollar holdings payable on demand or maturing in one year.
(e) For breakdown by types of debits and credits see tabulations prior to March 10, 1943.
(1) Adjusted to eliminate the effect of $20 million paid out on June 26, 1940 and returned the following day.
(g) For monthly breakdown see tabulations prior to April 23, 1941.
(h) For monthly breakdown see tabulations prior to October 8, 1941,
For monthly breakdown see tabulations prior to October 14, 1942.
(j) For monthly breakdown see tabulations prior to September 29, 1943.
(x) Includes $ 14.4 million apparently representing current and accumulated dollar proceeds of sterling area services and
merchandise exports.
(2) of which $50.3 million represente cost of gold purchased for export.
Regraded Unclassified
ANALYSIS 07 CANADIAN AND AUSTRALIAN ACCOUNTS
Strickly
(In Millions of Dollars)
Week Ended February % 1944
Confidential
BANK
OF
CANADA (and Canadian Government)
COLLDNWEALTH BANK OF AUSTRALIA CREDITS (and Australian Government)
DEBITS
CREDITS
DEBITS
Transfers
Transfers
Transfers from Official
to
Proceeds
Net Incr.
to
Proceeds
British A/C
Net Incr.
of
(+) or
Official
of
(+) or
Official
PERIOD
Total
Gold
For French
Other
Decr. (-)
Total
British
Other
Total
Gold
Other
Decr. (-)
Total
British
Others
For Own
Debits
A/C
Debits
Credits
Sales
A/C
A/C
Credits
dn $Rints(e)
Debits
A/C
Debits
Credits
Sales
Credits
in$Runds (e)
First year of war (a)
323.0
16.6
306.4
504.7
412,7
20,9
38.7
32.4
+ 181,7
31,2
3.9
27.3
36,1
30,0
6,1
+ 4.9
Var period through
50.1
12.3
+ 4.5
December, 1940
477.2
16.6
460.6
707.4
534.8
20.9
110.7
41.0
+ 230.2
57.9
14.5
43.4
62.4
Second year of war(b)
460.4
-
460.4
462.0
246.2
3.4
123.9
88.5
+ 1,6
72.2
16.7
55.5
81.2
62.9
18,3
+ 9.0
198.6
360.0
+ 40.5
107.2
57.4
49.8
112.2
17,2
95.0
- 5.0
Third year of war (c)
525,8
0.3
525.5
566.3
7.7
-
Fourth year of war(d)
723.6
-
723.6
958.8
47.1
170.4
741.3
+ 235.2
155.1
41.9
200.4
-
197.0
200.4
+ 3.4
-
1943
September
47.2
,
47.2
70,1
10.6
,
59.5
+ 22,9
16.8
15.0
1.8
20.0
-
20.0
+ 3.2
-
- 16.3
32.1
-
32,1
71.3
-
-
-
76.3
+ 39.2
42.8
40.5
2.3
26.5
-
26.5
October
November
15.4
0,1
15,3
95,1
-
5.9
-
89.2
+ 79.7
6.6
3.5
3.1
18,2
-
18.2
+ 11.6
36.5
3.2
27.0
.
27.0
- 12,7
December
146.8
0.3
146.5
55.1
-
-
-
55.1
- 91.7
39.7
1944
January
32.3
-
78.5
10.6
-
67.9
+ 46.2
6.0
1,0
5.0
11.3
-
11,3
+ 503
32+3
-
February
March
April
N
July
August
Week Ended
0.3
0.3
-
0.3
(b)
January 19, 1944
6,7
6.7
16.1
-
0.3
-
15.8
+ 9.4
0.3
-
-
-
-
-
-
12.7
+ 6.7
0,1
-
0.1
8.8
-
8.8
+ 8,7
January 26, 1944
6.0
6.0
12.7
13.8
13+8
9.6
10.1
+. 5.9
6.3
6.0
0.3
15.9
-
15.9
+ 90.0
19.7
-
February 2, 1944
-
-
- 15.1
2.7(f)
2.7
44.4(f) 23.1
-
-
21.3(8)
41+7
16.1
15.0
1.1
1.0
1
1.0
February 9, 1944
1
Average Weekly expenditures for
(a) For monthly breakdown see tabulations prior to April 23, 1941.
year of war
6.2 million.
(b) For monthly breakdown see tabulations prior to October 8, 1941.
8,9 million.
(c) For monthly breakdown see tabulations prior to October 14, 1942.
10.1 million.
(d) For monthly breakdown see tabulations prior to September 29, 1943.
13.9 million.
(e) Reflects changes in all dollar holdings payable on demand or maturing in one year.
Firsh year of war (through February % 1944)
12.0 million.
(f) Does not refl
curities.
(g) Includes 15.
and 5 6.0
million
dian Chartered Bank.
Regraded Unclassified
203
BRITISH AIR COMMISSION
1785 MASSACHUSETTS AVENUE
WASHINGTON, D. C.
TELEPHONE HOBART 9000
LEASE QUOTE
FERENCE NO
With the compliments of British Air Commission
who enclose Statements Nos. 124 and 125 - Air-
craft Despatched - for the weeks ended February
8th and February 15th respectively.
The Honourable Henry Morgenthau, Jr.
Secretary of the Treasury
WASHINGTON, D. C.
February 21, 1944.
Regraded Unclassified
MOST SECRET
STATEMENT NO.124
204
Aircraft Despatched from the United States
Week Ended February 8, 1944
ASSEMBLY
BY
BY
FLIGHT DELIVERED
TYPE
DESTINATION
POINT
SEA
ATR
FOR USE IN CANADA
BOEING
Fortress III
U.K.
U.K.
13
Catalina IV B
U.K.
U.K.
2
CONSOLIDATED
Liberator B VI
N.E.
N.E.
3
Liberator B VI
India
India
8
Liberator OR VI
U.K.
U.K.
5
Liberator GR VI
Bahamas
Nassau
2
GLENN MARTIN
Marauder II
M.E.
N.E.
2
Baltimore V
M.E.
M.E.
23
NORTH AMERICAN
Mitchell II
U.K.
U.K.
13
Mustang
N.W. Africa
Casablanca
14
"ustang
U.K.
U.K.
3
VEGA
Ventura GR V
U.K.
U.K.
1
Ventura GR V
U.K.
U.K.
3
Ventura GR V
8. Africa
S. Africa
3
DOUGLAS
Dakota III
U.K.
U.K.
41
Dakota III
Canada
Canada
2
BEECH
Beech C45 B
Canada
Canada
11
FAIRCHILD
Cornell I
Canada
Canada
5
Cornell PT26 B
India
Karachi
19
Argus
N.W. Africa
Oran
10
STINSON
Reliant
India
Cochin
9
1ant
U.K.
U.K.
8
GRUMMAN
Wildcat
U.K.
U.K.
4
Hellcat
U.K.
U.K.
1
Avenger
U.K.
U.K.
8
VULTEE
Vengeance
U.K.
U.K.
10
Vengeance
Australia
Sydney
7
CURTISS
Kittyhawk
N.W. Africa
Casablanca 17
TOTAL: 110
119
18
Movements Division
British Air Commission
February 14, 1944
Regraded Unclassified
MOST SECRET
205
STATEMENT NO.125
Aircraft Despatched from the United States
Week Ended February 15th, 1944
ASSEMBLY
BY
BY
FLIGHT DELIVERED
TYPE
DESTINATION
POINT
SEA
AIR
FOR USE IN CANADA
BORING
Fortress III
U.K.
U.K.
7
CONSOLIDATED
Liberator B-VI
M.E.
N.E.
2
Liberator B-VI
India
India
1
Liberator GR VI
U.K.
U.K.
3
Liberator GR VI
India
India
3
NORTH AMERICAN
Mitchell II
U.K.
U.K.
1
Mitchell II
Bahamas
Nassau
1
Mitchell II
Canada
Canada
2
Harvard
S. Africa
Capetown
7
Mustang
U.K.
U.K.
2
VEGA
Ventura GR V
U.K.
U.K.
1
tura GR V
M.E.
M.E.
1
Ventura GR V
S. Africa
S. Africa
6
GLENN MARTIN
Baltimore V
M.E.
M.E.
2
DOUGLAS
Dakota III
U.K.
U.K.
49
BEECH
Expediter
Canada
Canada
6
FAIRCHILD
Cornell PT 26A 8. Rhodesia
Capetown
70
VULTEE
Vengeance
U.K.
U.K.
22
NOORDUYN
He "yard
U.K.
U.K.
21
GRUMMAN
Hellcat
U.K.
U.K.
5
Avenger
U.K.
U.K.
15
STINSON
Reliant
U.K.
U.K.
8
TOTAL: 150
77
8
Movements Division
British Air Commission
February 21, 1944
mb
Regraded Unclassified
206
COPY
WU37 17 GOVT COLLECT
TDVY BOCAGRANDE FLO FEB 21 255P 1944
SECRETARY OF TREASURY
ATTENTION JOHN PEHLE, YOUR LETTER OF 19TH AT HAND
APPROVE YOUR SUGGESTION CONTAINED IN SAID LETTER
HENRY MORGENTHAU JR.
420P.
(Re proposed declaration by President)
Regraded Unclassified
207
Quincy Howe CBS World Have 12:00 noon 2/21/44
There are not many items in today's war news that can give such satisfaction
to our enemies. The Japanese have taken beatings in the Central and southwest
Facific. The German retreat in Russia continues; in fact, the Germans admit
that they have begun to withdraw in two regions on the central and southern fronts
where the Russians have not yet claimed any gains. In Italy, the American and
British troops on the Ansio beachhead just south of Rome have stopped the heaviest
German attack yet - inflicting big losses on the enemy. And American and British
bombers are steadily stepping up their attacks on Germany's vital aircraft
industry.
The final defeat of Germany and Japan never looked so certain as it does
right now. But it is equally certain that we cannot hope to make that defeat
complete without still greater efforts and sacrifices. Our fighting forces have
now gained the initiative and gene onto the offensive almost everywhere. But
any offensive is a costly. risky business. It's therefore none too soon to begin
asking what ve expect to gain and accomplish as a result of our efforts and
sacrifices - past, present. and future.
A, short time age, President Roosevelt made clear to all the world at least
one of the things that this country proposes to do. He set up a new organiza-
tion known as the Var Refugee Board. The purpose of this War Refugee Board will
be to save the lives of some two or three million persons in Europe whom the
Germans are going to try to exterminate before the war ends. As you know, Hitler
has already made 11 the settled policy of Cermany to kill every one of the five
million or more Beve who were living in various parts of Europe when the war
began. So far he has gotten rid of nearly half of them. But it is not only the
Regraded Unclassified
208
- 2 -
Jevs that Hitler is after. The Germans have also exterminated hundreds of
thousands of Poles - and in every country that the Germans have occupied,
thousands of men, women, and children are marked for annihilation at the hands
of the Easis.
Now that the fortunes of war have swung our way, President Roosevelt has
decided that the time has come when the United States of America can do something
to save all these people - who number several millions. He therefore selected
an extremely able young administrator - John Paley - to set up a small,
efficient organization with wide powers to get these intended victims of the
Nazis out of Nazi hands. Most of the intended victims live outside Germany in
the various satellite countries - especially Rumania, Hungary and Spain.
The satellite countries do not persecute the refugees from Germany as ruthlessly
as the Germans do - and as the watellites begin to lose faith in a German victory
they will want to get in well with the vinning side by refusing to play Hitler's
game. In some cases, the leaders of the satellite countries are only too glad
to break away from the Germans; in other cases, they are reluctant. But the
determining faster will not be their own preferences, but our power and our
policy.
This is where the Var Refugee Board comes in. From now on it is going to
be the policy of the United States to use its power to get some millions of
helpless persecuted people in Europe out of the hands of the Germans. It is to
be a life-saving expedition , nothing more and nothing less. For the storm
that the Maris released over Marope has worked like a natural catastrophe -
an earthquake, a flood, or a famine - and it has always been the policy of the
Regraded Unclassified
- 3 -
United States government and the desire of the American people to save human
Regraded 209 Unclassified
lives. Ve have done the same thing again and again - for the Chinese, the
Armenians, the Belgians, the Russians. Twenty years age at the time of the Tokyo
earthquake we even sent relief to the Japanese.
Testerday's New York Times contained a dispatch from Ankara, the Turkish
capital, showing how the Var Refugee Board has begun to operate. It seems that
Mr. Ira A. Hirschmann, vice president of Bloomingdale's big department store,
here in New York, arrived in Turkey to ... what he can do to get people out
of nearby countries to places of safety. Mr. Hirschnan will be the first and
only United States citizen in Turkey to be allowed to trade with the enemy -
and the enemy includes the satellite countries as well as the Germans - if he
can get them to release some of the men, women, and children whom the Germans
have marked for extermination.
Once these unfortunate people get out of Hitlor's clutches, the responsi-
bility of the United States Government ends. From that point on, private
charities and relief organizations vill take over. Camps are available in which
the refugess will be able to live in safety. As for their future - where they
vill 60 and what will become of them when the war is over: that will be a matter
for all the nations who take part in the final peace settlement to decide.
This new Var Refuges Board has only one concern - to save lives now.
The program of the War Refugee Board is one of which all Americans can
be proud. It shows that as the climar of the greatest war in history drave
near, we are preparing to use our growing pover and our coming victory for
humane purposes. and 10 has great practical importance, too. This nove to
help those who have suffered most from Nasi oppression reasoures everyone who
vants to see the Nazio crushed that ve are not fighting for ourselves alone.
210
- 4 -
And this is an important idea to get across - if only as a means of saving
American lives. For ve have in Europe many millions of allies - far more
numerous and far more powerful than the two or three million helpless refugees
whom the Nasis want to exterminate. And there is no better way for us to show
our determination to help the victims of the Masis help themselves than this
nove to help those who stand in the greatest need. A year or two ago, & Var
Refugee Board could have accomplished little or nothing. We did not have the
power then to bring any pressure to bear on Rumania, Hungary, Spain, and other
countries more or less in the Ands camp. But the approach of victory changes
all that. The time has therefore come for us to make some positive move that
vill weaken our enemies where they are weakest and to strengthen ourselves where
we are strongest. Our enemies have used cruelty and oppression for all they are
worth - and defeat has now begun to overtake them. We are preparing to use our
power in behalf of the humano purposes for which we fight. And an investment in
humanity is also an investment in victory.
Regraded Unclassified
211
FEB 21 1944
My dear Mr. President:
The attached memorandum presents the position
of Treasury and State, respectively, on the question
whether we should commit ourselves now to place
dollars to the credit of governments-in-exile for
their currencies furnished to us during liberating
operations to the extent that such currencies are
used for troop pay.
State Department prepared the portion of the
memorandum setting forth its position and has agreed
that I should present the question to you in this
manner. Would you please indicate which position
you favor?
Faithfully yours,
(Signed) D. W. Bell
Acting Secretary
The President
The White House
LCA:meu
2/21/44
Regraded Unclassified
212
(COPY)
FEB 21 1944
MEMORANDUM FOR THE PRESIDENT:
Re: Positions of State and Treasury Departments
on Negotiations with Exiled Governments
Concerning Use of Their Currency for Military
Operations.
There have recently been discussions between State,
Treasury, War and Navy Departments and informal talks with
the Belgians concerning a proposed agreement governing the
use by our armed forces of Belgian currency during liberating
operations. Such agreement would serve as a model for
similar arrangements with other exiled governments.
All parties agree that, in general, the question of
final settlement for the currency furnished by the governments-
in-exile should be postponed to a later date. The main point
of difference is whether we should make an exception to this
policy in the case of troop pay and commit ourselves now
to place dollars to the credit of Belgium to pay for the
Belgian francs used for troop pay in Belgium and expended
by our troops in the Belgian market.
The War and Navy Departments indicate that their primary
concern is obtaining the Belgian francs and that it is
immaterial to them how or when the francs are paid for. It
is believed that the Belgian government will probably abide
by any decision which our government makes although they
would, of course, prefer & present payment of dollars.
Treasury Position:
Treasury favors making no present commitment to pay
dollars to Belgium for Belgian francs used for troop pay.
It is unnecessary and undesirable to discuss now such diffi-
of the ultimate settlement of expenditures involved in these
cult questions as are obviously inherent in any discussion
military operations. Settlement of claims and counterclaims
should be postponed until it is possible to get a clearer
Regraded Unclassified
213
- 2 -
picture of the over-ail situation. For the present it is
important only that careful records of all such expenditures
be maintained for future reference at a time mutually satis-
factory to ourselves and the government of the country
concerned. An agreement now to pay dollars to Belgium for
francs used for troop pay would constitute a piece-meal
settlement. It would lead into immediate discussions as
to the eventual status of other items of expenditure.
Unless at the outset we take a clean-cut position in favor
of postponement of all settlement questions, we will be
faced with the likelihood of time-consuming discussions and
controversy with the exiled governments at the expense of
the war effort and of our future bargaining position.
We should not too lightly proceed upon the assumption
that we are under a legal or moral obligation to compensate
Belgium for items of this character. Historically, and
under international law, a strong case can be made out that
the U.S. has no obligation for these expenditures and--
on the contrary--we are entitled to full compensation from
the countries liberated to cover all of our costs in such
areas. Under these circumstances, the voluntary assumption
of liability by the Executive at this time may justifiably
make us the target for "hind-sight" criticism. Postponing
settlement will give us the advantage of being able to make
settlements and adjustments in the light of all pertinent
information and also make possible appropriate consultation
with Congress if that should be deemed necessary or desirable.
Postponing settlement of the item of pay of troops at
this time in no sense is inconsistent with our policy of
bearing the burden of the pay of our own soldiers. Obviously
the War Department appropriation would be charged with the
whole amount of troop pay--just as it always has. The only
point would be that the Army would buy the local currency
needed for this purpose from the United States Treasury rather
than from some bank or foreign government. The Treasury in
turn would hold the proceeds in a special account pending
over-all settlement with the countries involved. This is
precisely the arrangement now in effect in connection with
the Italian campaign.
Regraded Unclassified
214
- 3 -
State Department Position:
The proposal to defer until some indefinite future
date the question of what, if anything, we will do about the
pay of our own troops involves 8 discrimination against cer-
tain of our allies based upon the fact that they have been
unfortunate enough to have their territories overrun by the
enemy. In every other allied country, we pay our troops.
The proposal, in effect, is that we treat our allies in
Europe the same way we are treating Italy, a defeated enemy.
The Department of State feels that such a discrimination
would involve serious political difficulties, particularly
in view of the fact that the British propose to follow a
different policy. Even though we may be more generous than
the British in terms of any ultimate settlement regarding
the financial cost of reoccupation, the fact that we are not
paying currently for our troops and that the British are
paying for theirs will inevitably be contrasted to our
disadvantage.
The political disadvantages are increased by the fact
that troop pay in itself will undoubtedly be an irritating
factor in our relations with the countries where our troops
are stationed. American troops are well paid and are free
spenders. They are not limited in the proportion of their
pay which they may spend in overseas areas (as the British
are), although the Army makes every effort to encourage
savings. The spectacle of American troops spending in the
impoverished countries of Europe great quantities of the newly
printed money of the exiled governments is not going to
improve our relations with those countries or foster popular
confidence in accepting the new currencies the troops are
spending freely if it is supposed that this is all at the
expense of the governments they are bringing back. The course
of action which has been proposed smacks of the practices
of our enemies and comes close to making mercenaries of our
troops.
The Department doubts that deferring settlement of troop
pay would give us any real advantage in the settlement of
Regraded Unclassified
215
- 4 -
other financial questions arising out of liberation. The
allied governments will feel strongly that they are entitled
to receive the money, particularly in view of our practice
in other areas and of the British practice. It is difficult
to see how we can expect to derive bargaining power, when
we come to a settlement, from agreement to pay something which
our Allies will regard us as morally bound to pay.
Regraded Unclassified
216
( COPY )
February 21, 1944
Dear Mr. Stettinius:
Attached is a copy of a letter to the
President and memorandum enclosed therewith,
which I have just sent to the White House.
The letter and memorandum were cleared with
Mr. Reinstein of the State Department.
Sincerely yours,
s/ D. W. Bell
Honorable E. R. Stettinius, Jr.
State Department
Washington, D. C.
Enclosures
LCA:ew
copy:ka
Regraded Unclassified
217
0M-670
PLAIN
Algiers
Dated February 21, 1944
Rec'd 2:43 a.m., 22nd,
Secretary of State,
Washington.
564, twenty-first
FROM FRYER FOR LEHMAN NO. 9.
Reference Lehman 14 and FEA 233 January 24. Dis-
tribution of relief monies transferred here for use of
Friends stymied. Have recommended that Thomas P. Cope,
agent cashier now UNRRA, be authorized to act for FEA.
Better and immediately practical way to utilize this money
for relief of refugees is to authorize disbursing officer
Algiers to reimburse Friends for expenditures made from
their private funds upon presentation of properly certi-
fied subvouchers covering their disbursements for relief.
If such authority can be granted Friends will use nearly
all twenty thousand before June 30 and JDC representative
could use allotment you propose to make. Otherwise
present disbursing procedure too unflexible and cumber-
some to permit use of monies for relief purposes and
Friends will have great difficulty in expending allotment
made in their behalf before end fiscal year.
EMB
CHAPIN
Regraded Unclassified
218
FEB 21 1944
TO:
Mr. Mettinium
FROM: No. Fehie
Attention: AR. Warren
Attached hereto are proposed cables to Ambassador
Wilson in Algiers and to Hr. Michael is. Hoffman, Senior United
States Treasury Representative in Algiers, designating Mr.
leonard K. Ackerman, United States Treasury Representative
is French Africa, as Special Reprosentative of the Vas Refuges
Beard. You will note that this designation has been made with
the approval of the Trea mury Department.
You will note that we are not requesting as this time
that Mr. be accorded diplomatic status as Special
Attache. Yes the present be will retain his status as United
States Treasury Representative under assignment of the War
Refuges Doard. It is planned he will continue with his duties
as Treasury Representative in so for as they do not interfore
with his work for the Board.
(Signed) J.W. Pahle
Incleances.
2/18/46
Regraded Unclassified
219
SABLE
CABLE 90 AMBASSADOR WILSON, ALGIERS, FROM THE STATE DEPARTMENT
Please refer to Department's sirgres of January 26 in regard to the
sctablichment of the Var Refuges Board.
The Acting Director of the Bard, John V. Peble. and the Treasury
Department have worked out as aprangement whersby Leenard 3. Ackermann,
United States Treasury representative is French Africa, has been designated
as Special Representative of the Board. It is understood that he will
continue with his daties as United States Treasury representative is no
far as they do not interfore with his work as Opecial Representative of
the Board.
Yes should advise Askerenan that ns representative of the var Refuges
Board -
(a) he is charged with the duty and responsibility of earrying
out the Board's policios and progress in French North Africa:
(b) he 10 responsible to you and should disease his activities
and problems with you regularly and fullys
(e) you should provide his with the measurery communications
facilities in entrying en Me efficial duties;
(a) be smill extend all possible accistance to you in carrying
- the instructions contained is the Repartment's reforence communi-
I
(e) be shall work with and dn all pessible assistance to public
and private agencies operating in French Africa in this field regard-
less of whether as organizations are American, foreign, or inter-
I
(s) to stall develop and accist is the development of programs and
implemation of for the recour, transportation, mintenance
and relief of refugees)
(a) be small forward to the Deard recommendations and frequent
reports of progress of week and difficulties encountered;
w in no for as the Trading with the energy Act is concerned, the
Cometary of the Treasury has wated in the Ves Mefugeo Board and its
representatives in the field full authority to communicate with essay
territory to every out the purposes of the Order. the secretary of
Regraded Unclassified
220
- 2 -
the Treasury has also delegated to the Mar Refuges Board and its
representatives the power to authorise any public or private agencios,
who may be subject to the provisions of our Trading with the enery
ACT. to communicate with enemy territory for the purpose of carrying out
the Order. Askerwann is authorised to net accordingly.
Further instructions will follow from time to time. Meanwhile it 189
suggested that Ackermenn immediately contact the UNRRA representative in the
North African area with a view toward familiarizing himself theroughly with
the program under which it is contemplated that certain refuges in spain
will be transported to Gamp Mareshal Lymatey near Casablanes.
2/18/46
Regraded Unclassified
221
SABLE
GARLE TO anbassador WILSON, ALGIERS, FOR HOFFMAN FROM THE SECRETARY
OF THE TREASURY.
FOR WILSON FOR HOFFMAN FROM SECRETARY MORGENTHAU.
Reference is made to Telegram No. 320 of Jamary 29, your No. 432
of February 10, and Department's Airgram of January 26. State Department's
sable of (take in number, etc. of cable to Ambassader Vilson, Algiers,
designating Ackermann) designates Leenard 1. Ackermann, United States
Treasury representative in French Africa as Special Representative of
the Var Befuges Doard. This designation has my full approval. It is
understood that Ackermann my continue his duties as United States
Treasury representative in French Morth Africa in so far as they will
not interfore with his work as representative of the Board.
4 Senier Treasury Representative you will of course cooperate fully
with Askermann in the important task which has been assigned to his.
2/28/44
Regraded Unclassified
0
EGC-479
Casablanca
222
?
This telegram must be
Y
paraphrased before being
Dated February 21, 1944
communicated to anyone
other than a Government
Rec'd 8:20 p.m.
Agency. (BR)
Secretary of State
Washington
44, February 21, noon
Banque d'Etat du Maroc informed me that it has
received from Federal Reserve Bank of New York, through
its central office Rabat, 100,000 dollars to be turned
over to myself and Moses W, Beckelman. This is presumably
connected with similar transaction whereby my British
colleague has received equivalent of same sum towards
cost of refugee center. British Consul is instructed
as soon as same amount is forthcoming from the United
States Government to deposit amount in bank account on
which Director of the Centor (the above Mr. Beckelman)
is authorized to draw. Consul says he is then completely
disassociating himself from all further responsibility
in the matter.
I have received no instructions as to the above
joint account with Beckelman and request authorization
to turn over sum to him against receipt thus relieving
me of any financial responsibility for his acts as
Director of Center. Consulate should not be involved
further in By opinion.
RUSSELL
WTD
Regraded Unclassified
223
FEB 22 1944
LFR-466
This telegram must be
Ciaro
paraphrased before being
communicated to anyone
Dated February 21, 1944
other than & Governmental
agency. (BR)
Rec'd 6:47 p.m.
Secretary of State,
Washington.
397, February 21, 6 p.m.
FOR FEA SHORT
Reference our cable 1616 of September 8, 1943,
dealing with markings for Lease-Lend shipments to
Middle East medical reserve stock (civilian).
Please discontinue marking "In transit to Palestine,"
as stock is now being stored in Egypt.
KIRK
EJH
Regraded Unclassified
224
0
MJB-362
PLAIN
P
Y
London
Dated February 21, 1944
Rec'd 1:02 p.m.
Secretary of State,
Washington.
1439, Twenty-first.
Reference last sentence Department's telegram
626, January 25.
Foreign Office has replied to our letter in the
matter as follows:
"His Majesty's Government welcome the proposal
that a representative of the Inter-Governmental
Committee should be attached to MERRA and if the
latter is merged in UNRRA then it would appear that there
would be scope for cooperation between the latter and
the Inter-Governmental Committee to be extended to
that territory in accordance with the general agree-
ment recently reached regarding the relations between
UNRRA and the Inter-Governmental Committee. If you
agree we can jointly inform Emerson accordingly 80
that he can proceed with necessary arrangements in
Caire."
Please inform us when Cairo is instructed.
REP
WINANT
oct Pehle, Lesser, Luxford, Friedman, DuBois, M.Bernstein, Pollak,
Chauncey for the Secretary, Gaston, Paul, White, Bundy, Stewart.
Regraded Unclassified
225
FEB 21 1944
To:
Mr. Stettinius
From:
J. V. Pehle
Attached is a proposed cable to Bern relating to the precarious
position of Polish Jews interned in France as citizens of the United
Nations because they hold passports issued to them by various Latin
American countries, and of the persons in Switzerland who were
instrumental in securing such passports for them. Unless action is
taken promptly, there is danger that the Germans will no longer
recognise such passports and will deport their holders to Poland, and
that the Swiss Government may take punitive action against the people
in Switzerland who enabled the internees to procure such passports.
This matter was first raised by our Embassy at London (No. 12822
from London, December 18, 1943) but there have been other sources of
information (see No. 8114 to London, December 23, 1943; No. 319 to
Istanbul, December 29, 1943) including the Polish Embassy at Washington
(Memorandum of the Polish Embassy, December 24, 1943) and the Polish
Legation at Lima (No. 8655 from Lima, December 29, 1943). The most
recent information on the subject is contained in a letter addressed
to Assistant Secretary Long by the Agudath Israel Youth Council, dated
January 27, 1944. The matter was referred, through London, to the
Intergovernmental Committee for investigation with the Swiss Government
(Nos. 8114, 8190, and 281 to London, December 23 and 28, 1943, and
January 11, 1944, respectively). Apparently, however, no word has as
yet been received from the Intergovernmental Committee.
On January 11, 1944, the Department of State informed the Polish
Embassy by memorandum that it had been advised by the Government of
Paraguay that Paraguay had not cancelled and did not intend to cancel
the passports it had issued to Polish Jews, and further, that the
Department had referred the matter to the Intergovernmental Committee
with the request that it endeavor to stay the deportations of persons
Regraded Unclassified
226
- 2 -
involved. This memorandum concluded with the statement that the
Department of State proposed to take any further steps which it
could.
In view of the lapse of time since the matter was referred to
the Intergovernmental Committee and the apparent absence of any
response, I feel that the attached cable should be transmitted to Bern
with all possible speed.
(Signed) J.W. Pehle
CC: Messrs. Pehle, DuBois, Luxford, Friedman and Miss Hodel
LSLesser:ale 2/16/44
Regraded Unclassified
227
PROPOSED CABLE TO MINISTER HARRISON AT BERN
The Polish Embassy at Washington has advised the Department that
information has been received by the Polish Minister at Bern to the
effect that the Spanish Ambassador at Berlin, acting upon alleged
instructions of the Government of Paraguay, intends to revoke passports
issued by the Paraguayan consul at Bern to Polish Jews, who, by reason
of having such passports, are interned only as citizens of one of the
United Nations. The Polish Embassy has further advised the Department
that on December 12, a German commission arrived at the camp where these
Polish Jews are interned and picked up, for verification, all passports of
allied governments in the possession of Jews. The Polish Embassy stated
that the Polish Government was taking steps to persuade the interested
governments to maintain the validity of the passports in question during
the war and suggested that the intervention of this Government would be
helpful.
Mr. Michael G. Tress, Chairman, Agudath Israel Youth Council, has
submitted a memorandum to the Department dated January 27, 1944, the
substance of which is as follows:
"(1) The Swiss Government is maintaining a negative attitude to
the problem of Jewish internees in French camps who possess South
American or Latin American passports. It is, therefore, necessary that
intervention be made with the Swiss in an endeavor to have them take &
positive viewpoint of the problem and to get the Swies Government to
give positive answers especially when they come from German authorities.
(2) It is essential that the Swies Government be informed that the
Government of Paraguay has not cancelled the passports of Jewish internees
in Camp Vittel and is not considering such cancellation. (3) It is
necessary that special intervention be made for the recognition of the
passports of Jewish families interned in Camp Vittel who possess the
following passports:
Honduras
30 families
Peru
18
.
Costa Rica
28
.
Equador
18
#
Nicaragua
4
-
Haiti
4
#
Venesuela
Several families
(4) The Swiss Government is creating many difficulties for our Committee
(Agudath Israel Youth Council) in Switserland because the Dommittee was
instrumental in obtaining passports to save the lives of Polish Jews.
The Svies are threatening to punish these religious leaders for this action.
Regraded Unclassified
228
- 2 -
It is, therefore, essential that intercession be made with the Swiss
Government to influence the Justice Department to deal with this
problem in a humanitarian manner."
Refer Bern 251, January 25, 1944. You are requested to take all
steps necessary to ascertain actual situation. In this connection, you
might find it helpful to consult with the Polish Minister at Bern. It
might also be advisable to contact Sternbuch, St. Gall, and advise him
of contents of the Tress memorandum above quoted and secure such
information on the subject ag he can supply. It is also suggested
that you might find it desirable to contact Kullmann of Intergovernmental
Committee if he has arrived in Bern and ascertain the results of his
investigation into the matters raised by the Tress memorandum and the
nature of any conversations or communications he may have had with the
Swiss Government with respect to subject matter thereof. The Department
is of the view that this Government should take appropriate action
calculated to induce the Swies Government to take active steps to avoid
the seizure or other non-recognition by the Germans of the Latin
American passports held by internees at Vittel and elsewhere and itself
to desist from taking any action against those who may have been
instrumental in securing such passports for such internees. The Swiss
Government should be advised that the Government of Paraguay has
informed this Government that it has not cancelled and has no intention
of cancelling passports held by such internees. Please report all
developments fully.
00: Miss Hodel, Messrs. Luxford, DuBois, Pehle and Friedman
LSLesser:als 2/18/44
Regraded Unclassified
229
February 21, 1944
My dear Archbishop Cicognani:
The Swedish press has recently reported that the present
regime in Slovakia headed by DT. Josef Tiso has undertaken the
registration of all Jews preliminary to their deportation. it
is further reported that there are about 15,000 Jews remaining
in Slovakie whose deportation is being pressed by the German
Government.
President Roosevelt in establishing the War Refugee Board
clearly announced the intention of the United States Government
to take every action within its power to preserve the lives of
those who suffer at the hands of our enemies and to rescue those
whos lives are in imminent danger. In furtherance of these
humanitarian objectives we earnestly seek your good offices in
presenting to the Holy See the request of the War Refugee Board
which has the full support of this Department that efforts be
made to persuade Dr. Tiso and his associates to refrain from
further aiding and abetting the Nazis in their persecution of
the Jews.
This Government views most seriously and will take into
account inthe future any part which Dr. Tiso or his associates
may play in the deportation and persecutions of the Jews in
Slovakia.
In view of the urgency of the matter it is possible that
the Holy See may wish to express simul taneously its own views on
the threatened deportations.
Very sincerely yours,
/s/ EDWARD R. STETTINIUS, JR.
His Excellency
The Most Reverend
Amleto Giovanni Cicognani,
Archbishop of Laodices di rrigia,
The Apostolic Dalegate,
Washington.
WRB:GLW:KG
Regraded Unclassified
230
PARAPHRASE OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
February 21, 1944
NUMBER:
584
CONFIDENTIAL
It is requested that you inform Dr. B. Tochlenov of the
International Red Cross in Geneva, and Dr. L. Hersh, Professor at
the University of Geneva, that the Treasury Department has issued
license No. W-2126 to the Jewish Labor Committee giving it au-
thority to carry on communications with enemy or enemy-occupied
territory for the purpose of carrying on in such territory relief
and evacuation operations. This license is in all respects identi-
cal with those issued to the World Jewish Congress, the Joint
Distribution Committee, and the Union of Orthodox Rabbis, the
substance of which licenses are contained in Department's tele-
grams of January 20, January 5, and January 22, Nos. 197, 39,
and 229 respectively, and further referred to in the Department's
cables of February 2 and 8, 1944, Nos. 341 and 411, except that
the Jewish Labor Committee's license specifies in paregraph B
that the total amount authorized for the half year beginning
January 1, 1944 shall not exceed 214,320 Swiss francs or the dol-
lar equivalent.
The operation covered by this license has been approved
by the Department, the Treasury, and the War Refugee Board.
HULL
Regraded Unclassified
231
WAR REFUGEE BOARD
Executive Office of the President
Washington
FOR IMMEDIATE RELEASE,
RELEASE NO. 4
Monday, February 21, 1944.
John W. Pehle, Acting Executive Director of the
War Refugee Board, today announced that Ira Hirschmann,
vice-president of Bloomingdale Brothers, Inc., New York
City, has been designated as the Board's special rep-
resentative in Ankara, Turkey, assigned as Special
Attache to the Embassy in connection with war refugee
matters.
Mr. Hirschmann arrived in Ankara February 14, and
is now engaged in the development of programs and the
implementation of measures for the rescue, transporta-
tion, maintenance and relief of Jews and other perse-
cuted minorities in Europe.
Mr. Hirschmann has spent considerable time in
western and central Europe. Ih 1938 he attended the
Evian Conference as an observer for the United States
Government. Later he went to Austria where with the
cooperation of friends he arranged for several hundred
refugees to leave the country.
Mr. Hirschmann's most recent government service
was as special assistant to William Davis of the
War Labor Board. He is interested in civic activities
and serves as a member of the Board of Higher Educa-
tion of the City of New York,
000
Regraded Unclassified
232
February 21, 1944
To:
Mr. Bundy
From:
J. V. Pehle
In accordance with our conversation
of this morning, there is attached hereto a
copy of a cable to Steinhardt in Ankara. This
cable has been cleared by us and by the State
Department. Please call no on this as soon as
possible.
J. W. Pehle
JwP:ngt 2/21/44
Regraded Unclassified
233
AMERICAN EMBASSY,
ANKARA
For the Ambassader and Hirschmann
Department's 68, January 25, concerning War Refugee
Board and 120 of February 12, 8 P.M., concerning appoint-
ment Special Attache Hireshmann.
Special attention should be given to the following
matter.
The War Refugee Beard has reselved that one of the
projects which should be pushed with greatest speed 10
an effort to facilitate the evacuation of as many refugees
as possible from scoupied areas to Turkey.
The Board feels that the most feasible way of accom-
plishing this extremely urgent task is to obtain from
the Turitich Government effective meacures to encourage
the entry of more refugees. Comorately that government
should he requested (a) % relax border and other controls
and take such other action as will facilitate the entry
of the largest possible number of refugees from Dulgaria,
humais, and other areas adjacent to the Black Sea, and
(b) to unice an amouncement in as nearly an official man-
nor as possible indicating what is being done, and above
all, that entry of refugees into the country is permitted.
The Department decives to support the above program
of the Board and you are requested at the carliest possible
moment
Regraded Unclassified
234
- 2 -
moment to approach the Purkish Government with a view
to obtaining their agreement to the plan and immediate
action on their part. In addition to making clear this
Government's determination to do everything within its
power to rescue refugees and its expectation of full
cooperation from the Turkish Government you my, if you
deem it advisable, indicate that (a) The Var Refugee
Board is prepared to take all possible measures, financial
and otherwise, to aid the evacuation of refugees to
Turkey: (b) The Board is prepared to render full assis-
tance in the mintenance of refugees in Turkey: and
(a) If the Turkish Government takes necessary steps to
facilitate the entry of a substantial number of refugees
the Board will make all efforts to move refugees from
Turkey to other places if such action becomes desirable.
You my wish to disouss specifically the possibility
of setting up camps in Turkey in which refugees entering
the country could live. The Board would, if necessary.
make arrangements for financing the establishment and
maintenance of those camps and the support of the refugees
in them. This plan my facilitate the removal, on a com-
pulsery basis if meassary, of refugees from Tarkey to
other places if each nation becomes desirable in order to
permit the entry of more refugees into Turkey from occupied
areas.
In connection
Regraded Unclassified
235
- 8 -
In connection with the foregoing, you are, of course,
avere of the fact that the refugees remaining in
Transmistria are in invinent danger of extermination by
the retreating German armies, and that the evacuation
of those refugees is a problem of the greatest urgency.
Accordingly, you should do everything possible to aid in
the development and execution of neasures to effect the
evacuation of these people to Turkey. Various private
organisations are deeply interested in this problem and
are anxious to assist in financing and otherwise carry-
ing out the project. Representatives of at least come
of such organisations in Turkey have been requested to
get in touch at onse with Mr. Hirschmann for the purpose
of formulating a plan of action. You have previously
indicated that the basic difficulty of evacuation is one
of transportation. The private organizations interested
in this project are making all efferts to secure ships
and you should give them every assistance. In addition,
you should advise us premptly of any measures which can
be taken w the United States deverament to see that neces-
only shipping, acutral or otherwise, is available. Above
all, you should attempt to secure the full occperation of
the Turitish Government in this miter,
Mfforts
Regraded Unclassified
236
- 4 -
Efforts should, of course, also be made as soon as
possible to increase the flow of refugees from Rumania
to Turkey.
The Department approxiates that your own activities
regarding this matter my be consult restricted by the
terms of the Department's 108, February 7. 7 p.m., and
that 10 my be necessary for you to arrenge for Eirschmann
to take the principal initiatives. You should use your
best judgment in this regard. You will realize, bewever,
that these negotiations are on - entirely different
level than those relative to Turkey's role in the war;
and that this Government is simply addressing a humani-
tarian appeal to the Tarkish deverament, as to other
governments, rather than a request that they take certain
nation favorable to us at some sacrifice to them.
Please report to the Department the progress that is
being más in this matter, indicating the practical
neederes that will be necessary to put the plan in spera-
ties, obstmation encountered, and such action as you
Whink the Government of the United States should take to
facilitate the speration.
Regraded Unclassified
GEM-513
Ankara
237
This telegram must be
paraphrased before being
Dated February 21, 1944
communicated to anyone
other than a Governmental
Rec'd 9:50 p.m.
agency. (BR)
Secretary of State,
Washington.
306, February 21, 8 p.m.
FROM HIRSCHMANN FOR PEHLE
In a conversation today with Modig, Swedish
Minister here, he agreed to telegraph today to his
Government in Stockh0lm recommending the use of a
Swedish ship to evacuate 800 to 1000 children from
Constansa to Istanbul or better still to Haifa, Pales-
tine. He is requesting Stockholm to give him specific
information on the first ship which could be available
for this purpose. He mentioned that SS BARDALAND is
now enroute to Salonika to tow the Swedish ship
CAMELIA, which was damaged AS mesult of accidental
bombing by English, to Janakera in the Dardanalles
for repairs. All Swedish ship movements are scheduled
in advance from Stockholm and rerouting must be author-
ised from there. Modig states he will recommend as
an alternative first available shipplying from Canada
to Greece to be rerouted to Constansa and then to
Haifa.
Regraded Unclassified
-2- #306, February 21, 8 p.m., from Ankara
238
Haifa. He refers to the possibility of a reaction
from the Greek relief when they learn of this monetary
change of schedule. I told Modig that Washington
unquestionably was energetically taking up the matter
of the charter of this ship with the Swedish Minister
in Washington and through Stockholm 80 that we may
synchronise our efforts. This begins to look like
a real possibility and I eagerly await further instruc-
tions from you on this subject. When the question
of financial compensation to the Swedes for the use
of boat arises I an confident that the joint distribu-
tion committee, Paul Baerwald in New York will be
immediately helpful if funds are not otherwise available.
Ambassador Steinhardt has arranged for me to be
received by the Russian Ambassador tomorrow morning
when we will press for assistance in breaking the
Rumanian and Bulgarian bottlenecks.
STEINHARDT
WSB
Regraded Unclassified
239
NOT TO BE RE-TRANSMITTED
COPY NO.
12
BRITISH MOST SECRET
U.S. SECRET
OPTEL No. 59
Information received up to 10 a.m., 21st February,
1944.
1. NAVAL
One of H.M. Submarines damaged off NORWAY on 14th has
arrived safely. 20th. One of H.M. Destroyers sunk off TREVOSE HEAD
probably by U-boat. Captain and 92 survivors so far reported.
MEDITERRANEAN. 19th. Port of ANXIO reopened and
2,381 tons discharged. Shelling of area by enemy artillery con-
tinued. One of U.S. Cruisers bombarded ANZIO area with good
results.
19th/20th. Allied Coastal craft from BASTIA attacked
northbound enemy convoy east of ELBA. Enemy last seen firing at
each other.
2. MILITARY
ITALY. To noon 20th. In ANZIO beachhead Allied
counter attacks in centre have made some ground, taking prisoners.
BURMA. In ARAKAN our troops have made further
advances from both east and west towards enemy positions in
NGAKYEDAUK PASS.
3. AIR OPERATIONS
WESTERN FRONT. 19th/20th. 2,291 tons dropped C...
LEIPZIG. Fires believed concentrated and well established. Our
losses now reported 78 missing and enemy casualties 4, 1, 2.
20th. 952 U.S. heavy bombers despatched escorted by
1125 fighters. 569 tons dropped by 184 on LEIPZIG; 215 tons by 100
on TUTOW (Baltic Coast); 380 by 163 on GOTHA and BRUNSWICK. 349
aircraft attacked other targets in GERMANY. Casualties 76, 22, 47.
Allied - 21 bombers and 4 fighters. 33 medium bombers and 19
Moscuitoes attacked HAAMSTEDE airfield and military objectives in
NORTHERN FRANCE.
20th/21st. Aircraft despatched - STUTTGART 598 (18
landing reports outstanding). Other targets 78 (one missing), 73
enemy aircraft operated over southeast ENGLAND, 25 reaching LONDON
area. Fighters destroyed 2 and damaged 2.
ITALY. During 17th/18th and 18th/19th, 87 Welling-
tons bombed targets in AN2IO area. On 19th 96 Marauders and 218
fighter bombers attacked similar targets shooting down 21 enemy
aircraft.
4. HOME SECURITY
In enemy attack 20th/21st, bombs were dropped in
home counties where damage and casualties slight and in LONDON area
where many fires, including 3 large ones, were caused. Damage
mainly to residential property and numerous Government buildings
in Whitehall by blast. Some interruption to railway communications.
Casualties so far report 148 killed, 263 seriously and 199 slightly
injured.
Regraded Unclassified