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Volume 723, April 20 – April 23, 1944
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Volume 723, April 20 – April 23, 1944
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Henry Morgenthau, Jr. Papers
Diaries of Henry Morgenthau, Jr.
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Diary
Book 723
April 20-23, 1944
- A -
Book Page
Adams, Charles W.
See Deferments, Military
Argentina
See Latin America
# War Refugee Board
- B -
Banks
See Revenue Revision
Brazil
See Post-War Planning (Currency Stabilization)
- C -
Cabaret Tax
See Revenue Revision
China
British loan of E50 million - resume of situation -
4/22/44
723 324
Correspondence
Mrs. Forbush's mail report - 4/21/44
234
- D - -
Deferments, Military
Resume of Treasury situation by Bell - 4/20/44
131
Conference: present: HMJr, C.S. Bell, and Jordan -
4/21/44
194
a) Adams (Charles W.) deferment discussed
b) Internal Revenue, Bureau of
Mint, Bureau of
Procurement Division
Treasurer, Office of
War Finance Division
Deferments, under 26, by Board, not Treasury, discussed
by 9:30 group - 4/28/44: See Book 725, page 17
- E -
Eccles, Marriner S.
See Post-War Planning: Currency Stabilization
Employee Relations
Prizes for suggestions in re comfort of employees -
HMJr's memorandum to Mrs. Doyle and C.S. Bell -
133
4/20/44
Regraded Unclassified
- I -
Book Page
Federal Reserve System
See Financing, Government
Fedhala Refugee Camp
See War Refugee Board
Financing, Government
Federal Reserve System: Ability to support market for
United States securities, etc., reviewed in Murphy
memorandum "Federal Reserve Ratio" - 4/20/44
723 139
Finland
See War Refugee Board
- G -
Gold
See Latin America: Argentina
- I -
India
See Lend-Lease
Intergovernmental Committee on Refugees
See War Refugee Board
Internal Revenue, Bureau of
See Deferments, Military
- L -
Latin America
See also War Refugee Board
Argentina: Shipment of gold to Switzerland - use of
British navicert system to prevent discussed in
O'Connell memorandum - 4/20/44
145
a) HMJr strongly approves
146
(Brazil
(Mexico
See Post-War Planning (Currency Stabilization)
Lend-Lease
Silver to India: Resume of negotiations - 4/22/44
306
U.S.S.R.
Exports to in February 1944 - 4/21/44
249
Report for March 1944 and nine months ending
March 31, 1944, toward fulfillment of Third Protocol - -
4/22/44
307
United Kingdom: Federal Reserve Bank of New York
statement showing dollar disbursements, week ending
April 12, 1944 - 4/21/44
250
- X - -
Mexico
See Post-War Planning: Currency Stabilization
Mint, Bureau of
See Deferments, Military
Regraded Unclassified
- P - -
Book Page
Post-War Planning
Currency Stabilization
International Conference
Eccles as member of delegation discussed by HMJr,
White, O'Connell, and Smith - 4/20/44
723
42
Press conference arranged by HMJr, White, Smith,
Luxford, Bernstein, and Shaeffer - 4/20/44
45
FDR brought up to date on testimony before Senate
and House Committees, on Russian and British
cooperation - - 4/21/44
232
(See also Book 724, page 150 - 4/26/44)
Brazil: Final revised draft published in Rio
simultaneously with release in Washington and
London - - 4/22/44
373
Mexico: Final revised draft published in Mexico City -
4/22/44
374
U.S.S.R. : Final revised draft published in Moscow -
4/25/44: See Book 724, page 148
Procurement Division
See also Deferments, Military
Surplus Property, Disposal of
Construction Equipment: Results of conference reported
by Mack - 4/20/44
142
- R - -
Revenue Revision
Cabaret Tax: HMJr strongly favors retention of 30% tax -
4/20/44
135
"Increase in earnings of banks and all active American
corporations (after taxes) since 1932" - - White
memorandum - 4/20/44
141
- S - -
Silver
See Lend-Lease: India
Spain
See War Refugee Board
Stabilization Fund
Gold transactions for three months ending March 31, 1944 -
4/21/44
247
Statements by HMJr
Before Senate and House Committees. on International
Stabilization Fund - 4/21/44
205
(For previous drafts see Book 722: Post-War
Planning - Currency Stabilization)
- T - -
Taxation
See Revenue Revision
Treasurer, Office of
See Deferments, Military
Regraded Unclassified
- U -
Book Page
U.S.S.R.
See also Lend-Lease
Press comments reviewed in Harriman cable - 4/20/44
723
25
- W -
War Finance Division
See Deferments, Military
War Refugee Board
Spain: Corcoran may still go to Spain - - Pehle memorandum -
4/20/44
147
Fedhala Refugee Camp near Casablanca to be transferred
to United Nations Relief and Rehabilitation
Administration - 4/20/44
148
Finland: General attitude toward refugees discussed in
cable from American Minister, Helsinki - 4/20/44
152
Intergovernmental Committee: House of Commons debate on -
4/21/44
255
Reports for weeks of April 10-16 and 17-22 - 4/21/44
277,329
Argentina: Resume of situation - 4/21/44
286
1
April 20, 1944
10:00 a.m.
CONVERSATION WITH AMBASSADOR HARRIMAN AT MOSCOW
Present: Mr. White
Mr. Luxford
Mrs. Klotz
H.M.JR: What cables have gone, in case he refers
to other cables?
MR. WHITE: From him, we haven't heard anything,
but - do you want to jot down the numbers, or do you
want the cables?
H.M.JR: I want the cables. (Mr. White hands
cables to the Secretary)
MR. WHITE: Here is the one (indicating). It is
in the very first paragraph.
H.M.JR: All right.
MR. WHITE: Here is the later cable in which we
informed him.
H.M.JR: This is No. 938 that this refers to. And
then you give them the release?
MR. WHITE: They have the release in another cable.
We informed him that we sent a similar message to the
earlier one, to the Chancellor of the Exchequer. This
cable tells him they have agreed. If he knows about
this cable sent on April 17--
H.M.JR: You took an awful chance on that.
Regraded Unclassified
2
- 2 -
MR. WHITE: Well, Bernstein and Luxford sold me.
They were right. They decided to take a chance. We had
a couple more conversations that morning with Opie.
H.M.JR: But this is the group - April 10, April
17, and April 19 - there is nothing else?
MR. WHITE: No.
H.M.JR: Then what you want is the Russians to
say what?
MR. WHITE: Yes or no.
MR. LUXFORD: Yes is what we want.
MR. WHITE: Yes if they are in agreement, no if
they haven't given their word. They might have some
excuse. They might say they wouldn't know until next
week, or something like that. We want merely to be able
to say they are in agreement.
H.M.JR: Now I am ready. If the call had come
through at ten o'clock, I wouldn't have been ready.
MR. WHITE: That is a good thing.
MR. LUXFORD: The cable that went out last night
told Harriman to say yes or no.
H.M.JR: They say these cables take three days to
get through.
MR. WHITE: When you received your message, then,
it was not at all certain that he had received this
cable, but merely that the telephone operators had
contacted him.
H.M.JR: Oh, they started at nine o'clock this
morning. They said he couldn't talk at ten-thirty,
but he could talk at ten.
What is Smith doing?
Regraded Unclassified
3
- 3 -
MR. LUXFORD: Working on the statement.
H.M.JR: Did he hear about our decision to have
a press conference at four-thirty today?
MR. LUXFORD: Yes.
H.M.JR: If they waited until four-thirty tomorrow
it wouldn't get through until around six and wouldn't
appear in 8. single paper. Fred was amazed that White
agreed to it.
The 866 is the first part, rather than the 865.
What did you change the number for?
MR. WHITE: Because they are both parts of the same
cable.
H.M.JR: Let me have 865.
MR. WHITE: No.865 apparently comes after 866.
H.M.JR: That is what I thought. They sent the
last part first.
MR. LUXFORD: They send things in part.
H.M.JR: Let's do a couple of questions while we
are here. (The Secretary reads from attached list of
questions and answers)
"Will the Fund control the gold value of the United
States dollar?"
MR. WHITE: Definitely not. That remains the power
of the United States, exclusively. It can be altered
by the Fund, but only with the approval--
H.M.JR: Can we alter the gold content?
MR. WHITE: The gold value - only with the approval
of the United States.
Regraded Unclassified
4
- 4 -
H.M.JR: They can take the initiative?
MR. WHITE: Yes. They can't alter the gold content
of the dollar, but what they can say is that the value
of gold in terms of all currency shall rise or fall,
and we accepted that only on the condition that it would
require our approval.
MR. LUXFORD: In other words, they still can't do
it without our approval.
H.M.JR: Who advocated that?
MR. WHITE: A lot of the countries. You see, there
are two groups. One group thought that some day there
would be too much gold. Our friends in the Federal
Reserve Board would like to lower the price of gold 80 as
to reduce the mining of gold over there, and they had
8. lot of company - - the countries that don't produce gold.
The countries that produce gold wanted it the other way -
South Africa, particularly - Australia, and others.
They might simply want to increase it.
So a compromise was made. We said that no country
that - you can't change it except with the approval of
all countries that have more than ten percent of the
votes now. That includes--
H.M.JR: All the countries?
MR. WHITE: That have more than ten percent of the
votes.
H.M.JR: "Would it not be better to wait before attempt-
ing to stabilize currencies?"
MR. WHITE: The most acute period will be in the
immediate post-war period, where there are a number of
currencies that have to be adjusted and where the pressure
on the currencies of some countries will be the greatest,
and where the struggle for world markets will be the
keenest after six months or a year.
Regraded Unclassified
5
- 5 -
And it is very important that during that acute
period there is international cooperation to prevent
chaotic exchange conditions such as occurred in the
last war.
H.M.JR: "Will the Fund be used for the liquidation
of blocked sterling balances?"
MR. WHITE: No. That is out. No.
H.M.JR: You have the question.
MR. WHITE: That suggestion was in our first draft.
The British objected to it. They would like it, but
they think its presence in there - you can't say - this
is for your own information - its presence in there makes
it more difficult for them to make a better deal with
India or some of the other œuntries, 80 they asked us
to leave it out. As it stands now, the answer is no,
but it being in an earlier draft, some people may ask.
H.M.JR: Couldn't they try it?
MR. WHITE: They have the power to do so, if they
want to.
H.M.JR: I mean, that is England's one big problem.
Why shouldn't they try it?
MR. WHITE: Because they think they don't have to
liquidate India still. They think they can make & deal
which will be more satisfactory than the kind of conditions
that we imposed on them.
H.M.JR: I think the more honest answer - I am not
questioning you - would be to say, "Well, that is a
problem; they may bring it up. It is a problem that the
British had and it might help them."
MR. LUXFORD: Under the principles today, though,
they couldn't solve that problem.
Regraded Unclassified
6
- 6 -
MR. WHITE: No, but they could bring it up at the
conference and include it in the powers.
H.M.JR: It is the one thing that is bothering
Churchill.
MR. WHITE: But they were the ones who asked us to
take it out.
H.M.JR: That may be for trading purposes. But
there is nothing in it saying they can't liquidate.
MR. WHITE: Some changes or additions would have to
be made in the final draft if that problem was to be
undertaken.
H.M.JR: "Would the United States be bound to stay
in the Fund if membership proved disadvantageous?"
I know that.
MR. WHITE: On notice.
H.M.JR: "Will the Fund support the price of silver?"
Don't give me that kind of stuff.
MR. WHITE: There is nothing in there that has any-
thing to do with silver.
H.M.JR: Why not say so?
MR. WHITE: Because the fellow who will ask you will
only be the man who is interested in silver. Silver plays
no direct role.
H.M.JR: That is what I would say.
"Would joining the Fund mean that Congress will not
have control of our monetary system?"
The answer to that is no.
Regraded Unclassified
7
- 7 -
MR. WHITE: That is right.
H.M.JR: "Will the United States be forced to insti-
tute exchange controls?"
MR. WHITE: No. If we want to--
H.M.JR: Isn't it better to say the whole purpose
is 80 we will not have exchange control?
MR. WHITE: To discourage it, that is right.
H.M.JR: "Does the establishment of the Fund mean the
abandonment of the gold standard?"
MR. WHITE: On the contrary, it means a strengthening.
H.M.JR: "Why can't the BIS do the job?"
MR. WHITE: The BIS can't do the job because it has
neither the powers, the resources, not is the membership
broad enough. It has nothing other than a building of
& name.
H.M.JR: They didn't behave too well.
MR. LUXFORD: That is right.
MR. WHITE: If that question is asked, it will be
people on the outside who will be - a few - interested
in your answer from the point of view of picking you
up if you say anything very adverse. So I think you
better answer that cautiously. But the Bank has very
little resources. It has none of the powers that are
necessary for this purpose. It is owned by the Central
Bank and not by the Governments.
MR. LUXFORD: Doesn't even have Federal Reserve
Bank participation on the part of the United States.
MR. WHITE: And it is at present practically
controiled by Germany, because Germany votes with the
Regraded Unclassified
8
- 8 -
countries she has occupied. England has withdrawn her
Member.
(The Secretary holds telephone conversation with
Ambassador Harriman in Moscow, as follows:)
9
April 20, 1944
10:07 a.m.
HMJr:
Hello.
Operator:
The Secretary is on, Operator.
HMJr:
Hello.
Overseas
Operator:
Hello. Secretary Morgenthau?
HMJr:
Talking.
Operator:
This is the overseas operator 80 awaiting your
call to Moscow I'd like to advise you about
Government regulations. In the interest of
National security you are requested to refrain
from discussing departure or arrival, name or
location of ships, military traffic of any kind,
technical weather information or any other infor-
mation which may be of aid or comfort to the
enemy.
HMJr:
Thank you.
Operator:
You're welcome, sir.
HMJr:
Hello. Hello. Hello.
Treasury
Operator:
She'll put him on in just a second.
HMJr:
Hello.
Operator:
Yes, sir.
HMJr:
Oh, you're still there?
Operator:
Yeah, I'm still here. Do you want me to hold it
for you?
Overseas
Operator:
Go ahead, please.
HMJr:
Hello. Hello. Hello.
Operator:
Just a moment, Secretary Morgenthau. (Pause)
Treasury
Operator:
Hello, New York.
(Pause)
HMJr:
Hello.
Regraded Unclassified
10
- 2 -
Overseas
Operator:
I'm sorry to keep you waiting, Secretary Morgenthau.
HMJr:
That's all right.
Treasury
Operator:
Would you like me to hold it for you?
HMJr:
Don't they like to have me on? I don't care.
Operator:
No, they don't mind.
HMJr:
All right.
Operator:
I thought maybe you would mind.
HMJr:
Well, I -- my hand is getting tired.
if
Regraded Unclassified
April 20, 1944 11V
10:24 a.m.
Operator:
Go ahead.
HMJr:
Hello.
Averill
Harriman:
Hello.
HMJr:
Hello.
H:
Hello.
HMJr:
Averill?
H:
Yes.
HMJr:
Hello.
H:
Hello.
HMJr:
Averill?
H:
Yes.
HMJr:
Can you hear me?
H:
Yes, I hear you very well.
HMJr:
Averill, I don't know . -- did you get Cable 961?
H:
What?
HMJr:
Have you received Cable 961?
H:
Yes, I got your cable.
HMJr:
Yes.
H:
The answer 1s "No".
HMJr:
Hello?
H:
I say, the answer is "No".
HMJr:
The answer is "No"?
H:
They have not informed....
HMJr:
Wait -- I don't hear you.
Regraded Unclassified
12
- 2 -
H:
They have not been
....
HMJr:
They have not got the time?
H:
They have not had time to give your message ....
HMJr:
Well, now....
Operator:
Just a moment, please.
HMJr:
That's all right. (Aside: They haven't had enough
time to give him .... No, I can hear him.) Hello.
Oh. (Aside: Do you think it draws on it?) Hello.
Operator:
Yes, sir.
HMJr:
Which one of these things draws down most, the
dictaphone or the loud speaker?
Operator:
I think the loud speaker.
HMJr:
You think the loud speaker?
Operator:
I think 80.
HMJr:
Well, I could hear him. Tell the operator I could
hear him.
Operator:
Oh, is he gone?
Long
Distance
Operator:
Long Distance.
HMJr:
Hello, Operator.
Operator:
Yes.
HMJr:
I could hear Mr. Harriman, you know.
Operator:
Yes.
HMJr:
You cut me off. ;
Operator:
No, we haven't cut you off. Just a moment. I'll
see what happened over there.
Overseas
Operator:
Just a moment, please. Hello?
Regraded Unclassified
13
- 3 -
HMJr:
I could hear him. Hello? Hello?
Operator:
Yes, sir.
Overseas
Operator:
Hello, Secretary Morgenthau?
HMJr:
Yes.
(Pause)
Operator:
The operator says the overseas operator says
they interrupted because the connection was so
distant.
HMJr:
Well, I could
Operator:
She said she's trying to get a better connection
over there. I told her that you could hear him.
HMJr:
I could hear him.
Operator:
Uh huh. Well, just a minute now. She'll have
him back on.
HMJr:
Hello.
Operator:
Yes, sir. Shall I ask the telephone man if it
makes any difference?
HMJr:
What?
Operator:
Shall I ask one of the telephone men if it makes
any difference?
HMJr:
Yes. Which one makes -- if it makes any difference.
Operator:
Right.
HMJr:
Will you let me know?
Operator:
I will.
Regraded Unclassified
14
April 20, 1944
10:28 a.m.
Operator:
Yes.
HMJr:
Can you hear any difference now?
Operator:
I can't tell any difference at all.
HMJr:
All right. Well, then I can -- the loud speaker
does not?
Operator:
He said the loud speaker wouldn't make any difference.
HMJr:
All right. Now -- Hello.
Averill
Harriman:
Hello.
HMJr:
Averill?
H:
Yes.
HMJr:
I hear you very well. I heard you say the answer
was "No".
H:
Yes.
HMJr:
And that they didn't have....
H:
Didn't have time
HMJr:
What's that?
H:
There hasn't been time.
HMJr:
There hasn't been time?
H:
He hopes that you can be -- that you will be able
to wait.
HMJr:
Well, I am testifying before the Senate Friday
morning.
H:
What day?
HMJr:
Friday.
H:
Friday?
HMJr:
And before the House Friday afternoon.
Regraded Unclassified
15
- 2 -
H:
Yeah.
HMJr:
And that's all been arranged.
H:
Yes.
HMJr:
I -- I cannot wait.
H:
Well, I told them -- I said that you probably
could not wait.
HMJr:
No, I can't wait. And, as you know, we've got
agreement from everybody else.
H:
Yes.
HMJr:
Hello?
H:
Yes.
HMJr:
And we're releasing Friday night this statement.
H:
Yes.
HMJr:
For Saturday morning.
H:
Yes.
HMJr:
And I had hoped that they would join us.
H:
Well, there was a desire expressed that you might
be able to wait but they haven't been able to hear
from their experts.
HMJr:
Well, I -- I don't understand that. Do you mind
if I find out what happened at this end from their
experts?
H:
I wish you would. I think it's important that you
should.
HMJr:
And they're waiting on their experts.
H:
Yes.
HMJr:
Hello?
H:
Yes.
HMJr:
Well, I'll call up....
Regraded Unclassified
16
- 3 -
H:
And there were a few other points in the
original text
....
HMJr:
Yes.
H:
....
that seemed to trouble them.
HMJr:
I see.
H:
So that it's mostly dangers and the -- of certain
points that are not yet ironed out.
HMJr:
Well, at this end from the top down, there's
complete unanimity.
H:
Yes.
HMJr:
I mean, in our Government. Hello?
H:
Yes.
HMJr:
I just want you to know that.
H:
Fine. I wish I could talk more freely. How are
you?
HMJr:
I'm fine. And you?
H:
Fine.
HMJr:
Well
H:
Give my love to the Boss when you see him.
HMJr:
I'll do that and thanks for what you've done
and if you'd keep up the pressure, I'd appreciate
it.
H:
One trouble 1s, the cables take 80 long.
HMJr:
That's why I'm phoning you.
H:
Yes. I'm just sending you a cable explaining
it in more detail.
HMJr:
Thank you, Averill.
H:
Fine.
HMJr:
Good bye.
H:
Good luck.
Regraded Unclassified
17
- 9 -
MR. WHITE: If I had known you could hear as well
as that, we should have done it a week ago.
H.M.JR: You suggested it last night.
MRS. KLOTZ: This. is amazing.
MR. WHITE: The first time left some doubts in my
mind as to the wisdom of telephoning.
(The Secretary holds telephone conversation with
First Secretary Bazykin, as follows:)
18
April 20, 1944
10:34 a.m.
HMJr:
Hello.
Operator:
The Ambassador is not there now. They expect
him about 11:30.
HMJr:
Well, who is there? Is the First Secretary
there?
Operator:
I'll find out.
(Pause)
Operator:
Go ahead.
HMJr:
Hello. Mr.
....
Vladimir
Bazykin:
Yes, how are you, Secretary Morgenthau?
HMJr:
I'm very....
B:
This is Bazykin.
HMJr:
How are you?
B:
Very well, thank you.
HMJr:
Mr. Bazykin, I have just talked on the telephone
to Ambassador Harriman in Moscow.
B:
Yes.
HMJr:
And I inquired from him why we did not have an
answer from your Government in regard to this
statement on the stabilization of money
B:
Yes.
HMJr:
which we hoped to announce Friday night.
B:
Yes.
HMJr:
Now, I don't know how familiar you are, but I
am testifying before four Committees in the
Senate Friday morning.
B:
Yes.
HMJr:
And four Committees in the House Friday afternoon.
B:
Yes.
Regraded Unclassified
19
- 2 -
HMJr:
On this plan. And all of the countries involved
have -- we've heard from except your Government
and the plan 18 to give out a joint statement
in the various Capitols Friday night for Saturday
morning's publications.
B:
Yes, I see.
HMJr:
And we had hoped very much that your Government
would join us. Now, in talking with Mr. Harriman,
he says that your Government had not yet heard
from your experts, which is very difficult for me
to believe.
B:
I see.
HMJr:
And
B:
It was answer to our Government - to Mr. Harriman.
HMJr:
Yes, that they had not yet had time
B:
Yes.
HMJr:
to hear.
B:
I see.
HMJr:
And that there were one or two points in dispute.
Well, of course, the two statements contradict
each other.
B:
Yes.
HMJr:
But with everybody going along on this and it's
simply a declaration of principles -- I mean, it
doesn t bind anybody. You see? .
B:
Yes.
HMJr:
I wondered whether you might still have time to
get an answer 80 that it would seem that all United
Nations were together.
B:
Yes. Thank you very much, Mr. Secretary, for your
calling. I know that the Ambassador communicated
with Moscow after our visit with you....
HMJr:
Yes.
Regraded Unclassified
20
- 3 -
B:
at the Treasury Department and I will
immediately see him and I will regret to
inform him what you told me and
HMJr:
Should
I....
B:
I am sure that he will undertake what he
can do.
HMJr:
Should I say it once more or did I -- do you
understand it?
B:
No, I understood everything.
HMJr:
And you see the point is -- well, if you under-
stand it -- and if there's any point you don't,
Mr. White's available. But there's still time,
you see....
B:
Yes, sir.
HMJr:
for us to hear from Russia.
B:
Yes.
HMJr:
And -- the Soviet Union.
B:
Yes.....
HMJr:
And....
B:
....Mr. Secretary.
HMJr:
See what you can do.
B:
And you say that there is an idea to make the
declaration -- joint declaration -- in all Capitols
of the United Nations?
HMJr:
We've heard from everybody except your Government.
B:
I see.
HMJr:
And the announcement is to be made at eight o'clock
Friday night.
B:
Eight o'clock.
HMJr:
In this Capitol.
Regraded Unclassified
21
4 -
B:
Yes.
HMJr:
And it will be made in London and it's going to
be made in Canada and it's going to be made in
Chungking and a number of other places. They're
all going to make a joint announcement.
B:
Joint announcement at eight o'clock in the morning?
HMJr:
No, eight o'clock tomorrow night.
B:
Tomorrow night.
HMJr:
Now the other thing which is embarrassing to
me, you see, I am to appear before these Committees
B:
Yes.
HMJr:
in our Senate and in our House tomorrow
B:
Yes, I remember you told the
HMJr:
and I
B:
the Ambassador.
HMJr:
And I had hoped very much that -- because as far as
I know, there's practically no difference.
B:
Yes.
HMJr:
And I imagine it's due to difficulties in communica-
tion possibly and your Government hasn't been fully
informed. But it's something which I should think that
the Soviet Union, of all the Countries, would want
to subscribe to.
B:
Yes.
HMJr:
I mean you get as much out of it, or more, than
anybody else.
B:
Yes. And I will be very glad to inform the
Ambassador, Mr. Secretary, and I am sure that he
will do everything possible to get....
HMJr:
Do you ever use the telephone?
B:
We do sometimes if assured conditions are not 80
good, but I will ask him
Regraded Unclassified
22
- 5 -
HMJr:
Well, ....
B:
if he can.
HMJr:
Well
B:
If it's not too late.
HMJr:
Well, the phone -- I was informed -- I didn't
know we could talk -- you can talk from nine
'till eleven in the morning.
B:
Yes.
HMJr:
And I had an excellent connection with Mr.
Harriman. I could hear him almost as well as
I can hear you.
B:
I see. I'll recommend to the Ambassador
HMJr:
Would you recommend.
B:
to telephone.
HMJr:
that he might put in a telephone call tomorrow
morning?
B:
I think BO. Yes, I'll recommend him to call.
I think it might be the best way to get Moscow
immediately.
HMJr:
If you would, because as I say it's for the
general effect on the world, I think, it's most
important that Russia be amongst those.
B:
Yes, I'll be very glad to inform the Ambassador
immediately and I am sure, maybe, he will call.
I will advise him.
HMJr:
And I'm available any time today or tonight if
the Ambassador wants to talk to me.
B:
Yes. Thank you very much.
HMJr:
I'm available.
B:
Thank you very much.
HMJr:
Thank you.
B:
Thank you. Good bye.
23
- 10 -
MR. WHITE: I didn't think that the Ambassador said
they hadn't heard from the experts, but that they hadn't
time.
H.M.JR: Listen, what Harriman said to me was two
things - they hadn't heard from their experts, and the
last thing he said was, "But there are a couple of points
not in agreement." The two things are in conflict.
So I said that.
MR. LUXFORD: Will we get their conversation if they
talk to Moscow?
H.M.JR: Yes, through Gaston's office; you can take
it up with the censorship people. He is on that Board,
I think.
MR. WHITE: Their experts are on the spot. If they
said they haven't communicated--
H.M.JR: Tell them we think the Ambassador is
going to speak to Moscow tomorrow and we would like
immediate translation 80 I could have it immediately.
MRS. KLOTZ: I don't think they will call.
MR. LUXFORD: We will find out whether they call,
anyway.
H.M.JR: I think through Gaston's office.
Now, one other thing while I have you here - with
this gold imminently going into Switzerland, and all that,
just as soon as you fellows can catch your breath, let's
move in on the Argentine.
MR. LUXFORD: All right.
H.M.JR: I am sick and tired of all this shadow-
boxing, because - I know that you will reluctantly go
along, but you can overcome it. (Laughter)
Regraded Unclassified
24
1. Will the Fund control the gold value of the United
States dollar?
2. Would it not be better to wait before attempting to
stabilize currencies?
3. Will the Fund be used for the liquidation of blocked
sterling balances?
4. Would the British Empire have a larger vote than the
United States?
5. Would the United States be bound to stay in the Fund
if membership proved disadvantageous?
6. Will the Fund support the price of silver?
7. Would joining the Fund mean that Congress will not have
control of our monetary system?
8. Will the United States be forced to institute exchange
controls?
9. Does the establishment of the Fund mean the abandon-
ment of the gold standard?
10. Why can't the B.I.S. do the job?
11. Will the fund compete with banks on exchange trans-
actions?
Regraded Unclassified
25
Department OF STATE
DIVISION OF COMMUNICATIONS AND RECORDS
MEMORANDUM
With reference to the Secretary
of State's letter of January 1, 1944
there is transmitted herewith a para-
phrase of a telegram from Loscow con-
tinuing Ambassador Harriman's inter-
pretive comment upon developments in
and respecting the Soviet Union as
reflected in the Soviet Press.
o
May 2, 1944
HA
26
PARAPHRASE OF TELLGRAM RECEIVED
FROM: American Embassy, Loscow
TO:
Secretary of State, Washington
DATED: April 20, 1944
NUMBER: 1369
This report covers the period from March 9 to April
15.
Apparently with the general purpose of exhorting
the people to increased efforts for the drive for final
victory the press continues to concentrate on the war
and to publicize accomplishments on the home front as
well as the military.
Soviet political policy is unfolding, as applied
to specific problems of individual countries, with the
advance of the Red Army toward and into neighboring
countries. The trond of Soviet diplomacy is becoming
positive and increasingly active. These developments
are in pattern consistent with the basic policies pre-
viously outlined by Soviet officials, but the determina-
tion and readiness to take independent action in some
cases is startling in aggressiveness. Commensurate with
its power and with the sacrifices it has made toward
winning the war, it is increasingly clear through the
announced policies and articles in the press that the
Soviet Union intends to play an important role in inter-
national affairs.
The Soviet
Regraded Unclassified
27
-2-
The Soviet Union gives no indication that they do
not value the relations they have attained with ourselves
and the British. It is obvious, on the other hand, that
they are unwilling to compromise certain basic principles
which they believe are essential to the interests and
security of the Soviet. The western boundaries estab-
lished in 1940, with the exception of the compromise
Curzon line for the boundary with Poland, are, from
Finland to the Black Sea, considered fixed and irrevo-
cable. Although full opportunity for political expres-
sion of the Communist parties appears a fixed objective,
any semblance of a cordon sanitaire is to be ended, but
confirmation is evidenced by Molotov's announcement re-
garding Rumania and exchange of representatives with
the Badoglio Government that Communist form of Govern-
ments in Europe is not a present objective of the Soviets.
(1) In IZVESTIYA'S article of March 29, the Soviet
decision to exchange direct representatives with the
Badoglio Government was justified as part of the Soviet
policy of assisting all movements tending to shorten the
war against the German Fascisti. By proventing the
unity of all anti-Hitler Italian groups in the struggle
against the Hitlerites, the article stated that the
political situation in Italy had created disunity
which
Regraded Unclassified
28
-3-
which threatened Italy with disaster and above all
tended to prolong the war, Arguing that heretofore
the Soviets had lacked adequate representation in Italy
in comparison with the Allies, the editorial at the same
time indirectly criticised the Allies for allegedly not
working out, together with the Soviets, a common policy
for Italy.
The independent character of Soviet action contra-
ry to the spirit of the Moscow understanding was ignored
by the Soviet press and an attempt to take leadership in
advancing policies that had consistently been those of
the Americans and British in Italy and which they had
been pressing in full consultation with the Soviets was
made by them.
(2) In connection with what was designated as the
entry of Soviet troops into Rumanian territory, Molotov's
statement confirmed that the Soviets had no territorial
aims in Rumania and that any attempt to alter the social
and political order existing there had not been their
intention. Not only in relation to Rumania, but also
as an indication of Soviet policy toward neighboring
countries in general, this statement was important.
Shortly before the statement was made the fact that
Great Britain and the United States were informed was
an encouraging
Regraded Unclassified
29
-4-
an encouraging sign of Soviet willingness to collaborate
and in previous and subsequent discussions of the
Rumanian question this willingness has been further con-
firmed. By its reference to the arrival of the Red Army
at the "state frontier" at the Pruth, the press at the
same time made clear that the Soviet maintained its
position on the Soviet Rumanian boundary question and
its claim to Bessarabia.
(3) The occupation of Hungary was pointed out as
a further drain upon German cilitary strength and that
by withdrawing forces which might have been used against
the Allied invasion in the west new favorable military
possibilities for the western Allies were thereby created.
The consequences of continued association with Hitlerite
Cermany WOS taken as the theme of editorials warning other
Axis satellites of a fate similar to that of Hungary.
(4) However, without advocating a direct break with
the Puric Government, the press carried further its ten-
dency to view Tito's movement as virtually a Government
in Yugoslavia. Tito was regarded as the only representa-
tive of the Yugoslav people in Yugoslavia Ambassador
Semic's letter of resignation published by PRAVDA and
RED STAR. Attacks even sharper than previously made on
Mihailovich
30
⑉5⑉
Mihailovich and publicity was given the request that
Yugoslav funds abroad be frozen which request was
made by the Yugoslav Committee. Several speakers placed
the London Polish and the Cairo Yugoslav Governments in
the same category at the Kosciuszko meeting staged by the
Union of Polish Patriots and the All Slav Committee.
(E) Although favorable foreign comment on the
Soviet offer for peace terms was published there was,
during the period under review, little publicity concern-
ing Finland. Anxiety upon the part of the Soviets not
to prejudice the prospects of peace negotiations was
apparent.
(6) Toward Poland the attitude remained much the
same as stated in my previous report. The Kosciuszko
Rebellion's 150th anniversary scainst the Czarist Govern-
mont furnished the occasion for stressing the theme that
the Union of Polish Patriots, together with Polish forces
in the Soviet Union (the latter recently raised to the
status of an army and now called "the" Polish Army)
wore carrying on the Kosciuszko tradition, while elements
such AS Sosnkowski, against whom Kosciuszko had fought,
were viewed as continuing the tradition of the reactionary
landlords.
A report
Regraded
31
-6-
A report of an article in the LONDON OBSERVER which
included statements to the effect that the majority of
the Ministers of the London Government realized the
necessity of meeting Soviet demands but lacked courage
to buck the militarist elements, was published in line
with the press policy of hinting periodically at the
possibility of some sort of agreement being reached
between the Soviets and a reconstructed London Government.
To the arrest of Ukrainian soldiers serving the Polish
Army in England considerable publicity was given.
(7) The call to partisan and underground move-
ments in all countries to rise against the Cerman in-
vaders continued to be emphasized by the press.
Combined with strong hints that the resistance groups
were suffering from lack of arms and wore handicapped
by an order to await the signal of a general uprising,
tributes were paid to French resistance, especially in
upper Savoy. Prominent treatment was given the Czech
Government's appeal to its people to take action and
Pene's letter to Stalin expressing joy at the entry
of the Red Army into Czechoslovakian territory.
Without comment, General de Gaulle's speech on
French unity and the steps taken to strengthen his
position
32
-7-
position were reported. As 9 model for the treatment of
traitors the sentence on Pucheu was applauded.
(8) The conclusion of a new fisheries convention
between the Soviet and Jap Governments covering EL five
year period combined with an agreement with the Japs to
liquidate their concessions in northern 3akhalin was an
important now development. The connection between this
agreement and the "sobriety" which the Japs had acquired
with the successful Soviet military operations against
Germany was editorially emphasized. In regard to the
Japanese evacuation of northern Sakhalin it was pointed
out that Matsucka had given an undertaking in April 1941,
but it was in the autumn of 1943 that the necessity of
undertaking negotiations to carry out these promises was
recognized by the Japanese. That the agreements had
taken account of the special position of "our Allies" in
the Pacific was stated.
(9) Mixed was the press comment on Great Britain
and the United States. Receiving about as much space
and prominence as the war in Italy and the Pacific com-
bined, the Allied war effort was a major theme in dealing
with Britain and America and special prominence was given
to the Allied air war against Germany. Prominence was
given
Poaradod
33
-b-
riven to important declarations of Allied tatesmen and
exprossions locking toward future cooperat on with the
11105 In the war and postwar period conti med snd, in
general. news from Allied countries was treated sympa-
Unusually full, though not complete,
coverage was riven tc .r. Hull's radio address of
heril S. RED STAR contained & long article cautiously
convessing the possibilities for the 1944 American Presi-
Cential election, confinire direct comment only to stuto-
ments to the effect that Recsevelt's foreign policy had
the support of wide soctions of the American people and
that the chief problem confronting the United States at
present is foreign affairs.
Regarding the activities of "Fascist and reactionary"
(Teups within the Alliod countries, unxiety was expressed.
country Hearst of being in agent of Mtler in America, a
3030 0 Must was delivered by Zuslavski. In WAR VID THE
CLASS an article expressed the view that powerful
"roups of capitalists In the United States and more es-
recially in England were anxious to revive international
cartols in which a large rolo has been played by German
interests. Tending to keep alive suspicion of Britain
was the publication of a second statement by a German
prisoner
34
-9-
prisoner regarding the exchange of able bodied German
military personnel in British hands which permitted them
to be sent for service on the eastern front against the
Russians.
In connection with the Canadian-Soviet supply agree-
ment, prominent expressions of good will went to Canada,
and to Canada's military and industrial contribution to
the Allied war effort warm tribute was paid.
(11) The victories of the Red Army and exhortation
to increase war production and in other ways help the
front were the chief internal themes. In contrast to
the emphasis on anonimity which prevailed during the
early stages of the war, orders of the day and the award-
ing of high decorations to Army officers continued to
build up Soviet military leaders in the public eye.
HARRIMAN
DCR:MAS:EA
Regraded Unclassified
35
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
AMEMBASSY, Moscow
TO:
Secretary of State, Washington
DATED:
April 20, 1944
NUMBER:
1370
SECRET
HARRIMAN SENDS THE FOLLOWING FOR THE ATTENTION OF THE
SECRETARY OF THE TREASURY.
As soon as I received your cable of April 17, 1944,
No. 938, I requested an immediate appointment with the Peoples
Commissar for Finance and I sent the substance of your cable over
in writing. Inasmuch as the Commissar was engaged all last night
in conference I saw him this afternoon and strongly urged him that
the Soviet Government should join in authorizing the statement
proposed. I was informed by him that he could not agree to the
text of the International Monetary Fund statement being approved
by the Soviet expert. The Commissar stated that he had not had
an opportunity to hear from his expert regarding the changes which
your cable proposed and that in any event there were several points
in the previous text to which agreement had not been given by the
Soviets. He stated, in reply to my queries, that no provision
had been made for the fixing of the parity of the ruble unilaterally
by the Soviet Government and that other provisions concerning payments
in gold and gold resources in mining countries were not satisfactory
Regraded Unclassified
36
- 2 -
to them. It was stated by him that he felt it would not be desirable
for the text to be released without the Soviet expert's approval.
The Commissar was asked by me whether the Soviet Government would
agree to publication after these questions of which he spoke had
been settled. He stated in reply that he would have to get the
approval of his Government before he could answer that question.
He clearly indicated by indirection, however, that the Soviet
Government was very anxious to have the situation develop in such a
way that their expert could join in approving the text of the
statement. The Commissar expressed the hope that you would not find
it necessary to publish the text without participation by the Soviet
Government. It was explained by me that I believed you would have
to publish the text as you were appearing tomorrow before Congressional
Committees.
When I departed I was asked by Mr. Xverev to convey to
Mr. White and you his appreciation of the courtesies and hospitality
which the Soviet experts in Washington had received.
Harriman
Regraded Unclassified
37
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
Moscow
DATED:
April 20, 10 p.m.
NUMBER: 1380
I we.s asked by Molotov to call this evening near
midnight and received the following statement from him:
Among our financial experts there exists a major
discord with respect to the basic conditions of the
establishment of the international monetary fund. The
objection was made by the majority of our experts to
a series of points. Speaking with complete frankness,
the Soviet Government has not succeeded in studying
yet fully the basic conditions of the proposal.
If it is necessary, however, to the Government
of the United States of American to have the concurrence
of the Government of the Soviet Republic to secure due
effect in the rest of the world, theSoviet Government is
willing to instruct its experts to associate themselves
with Mr. Morgenthau's project.
It was explained by Mr. Molotov that this was not
to be considered as a reservation made by the experts
Regraded Unclassified
38
-2-
but for your information, it expressed the actual attitude
of the Soviet Government. If you wished it under these
circumstances would issue instructions to his experts
to associate themselves with the monetary fund statement.
Molotov was informed by me that there was not time
for me to get a reply from you, and I suggested to him
that he give instructions to his experts to associate
themselves with the monetary fund statement, provided
however, you approved under the circumstances. To this
Molotov agreed, and he will instruct his experts on
receipt of this cable to get in touch with Mr. White.
My suggestion is that you telephone me as early
as possible in order to give me advice of your decision
so that I may tell Molotov, who said, if you approve, he
is prepared to publish the monetary fund statement in
Moscow.
FMA:EGC:ja
Regraded Unclassified
April 20, 1944
39
2:13 p.m.
HMJr:
Hello.
Operator:
General Greenbaum. There you are.
HMJr:
Hello.
General
Greenbaum:
Yes, sir.
HMJr:
Hello, Eddie.
G:
Yes, Henry.
HMJr:
Eddie, I got the answer to the request that
we made about the possibility of using German
prisoners.
G:
Yes.
HMJr:
Which I appreciate is the correct answer.
G:
Yes.
HMJr:
Now, I want to ask you, a fellow with an
original mind, how can we get the results?
G:
I'm not quite clear exactly what you want to
accomplish there.
HMJr:
Well, let me tell you. I wanted to try it out
in one factory. The idea I got is either very
good or it's no good. See?
G:
Yes.
HMJr:
Now, what I've got in mind is this, I don't
think there's one person in ten in this country
who really knows what the Nazi system has done
to their own people.
G:
Yes.
HMJr:
See? And the thing that's bothering me as time
comes -- approaches this invasion business and
if it's going to be tough, which certainly we
have every reason to believe, that this thing
called Nazism -- the thing which we've got to
exterminate -- that the people in this country
aren't prepared, because they really don't know
what it 1s. I mean there's a lot of loose talk --
hello?
Regraded Unclassified
- 2 -
G:
Yes.
HMJr:
Now, the thought that I had -- that if -- I know
from conversations I've had with you and others,
there are amongst these prisoners real Anti-Nazis.
G:
Yes.
HMJr:
If one of these men, or two or three, could talk
to a group of laboring people -- I mean on the idea
of incentive -- and explain to them what Nazism has
done to their home -- the question of the Church --
Christianity, and how it has deprived them of all
their privileges. You see? And it's something
that they hate. It's something that we've got to
exterminate, no matter what the cost. Hello?
G:
Yes.
HMJr:
Now, every time I've talked to any group, and I've
really gotten tough about the enemy -- I'm talking
now about labor audiences -- 1s the only time I
ever get a hand. And I wouldn't say, "Now, when
I get through, won't you please buy a bond?" But
I've got the hope that the audience will be angry
enough that they'd want to produce more guns and
more tanks and buy more bonds. You see?
G:
Yes.
HMJr:
Now, I may be entirely wrong. I don't think anybody
can tell me until it's tried. I do know that the
Germans have an -- I mean the Russians have an
organization -- they have the General who defended
Stalingrad, or attacked Stalingrad -- I mean, they've
got the whole group there, of Germans, in Russia
whom they use for propaganda purposes. Now, the
Russians are doing it. They go on the air and they
certainly got them some way or other.
G:
That's an entirely different thing because those
fellows have sort of pulled themselves away.
HMJr:
But they must have been prisoners.
G:
Yes, they were. But that's a deal that they've
been working out among themselves. You see, but
we'd be handicapped on this business of using the
prisoners of war, in the first place, on the
Geneva Convention, we'd be tied -- our hands would
be tied as far as our ability to do it even though
they'd be willing to, because the Germans would
Regraded Unclassified
40
- 3 -
G:
Cont'd.
twist that around and there's the possibility of
retaliatory measures on our prisoners. That's
number one. Number two. You'd have a great
reluctance on the part of the German prisoners
to do it because none of them want to put them-
selves in that category on account of a fear of
reprisals to members of their families there
and they, themselves
HMJr:
Why don't you take that candy out of your mouth?
G:
That's right.
HMJr:
(Laughs) Or give me a piece 80 I can chew.
G:
That's just a gulp from a pipe I've been
smoking.
HMJr:
(Laughs)
G:
I don't think it's do-able at all via prisoners-
of-war, but what I would like to do is think it
over and talk with Colonel Gough and some of the
others and see if we can think of some way in
which you can do it. Your objective is a fine
one and I think it's something that would be very
effective, but I just can't see doing it via the
prisoners-of-war.
HMJr:
Well, look, Eddie, old man, I'm not trying to
kid you -- if you agree with me the objective
18 worthwhile trying -- I don't want to try it
Coast-to-Coast. I'd like to try it in some
isolated place, to see the effect on the audience.
You see?
G:
Yes, I see.
HMJr:
Test it out and then if the audience reacted well,
and you got this general response, "By God, we're
going to get mad and we're going to work Sunday
and we're going to work Saturday night. We're not
going to get drunk. We're really going to do
something and we're going to invest our money to
the last.... -- I mean, I want to get these people
really 80 that they understand this thing, and they
don't.
G:
Well, I've got it. Let me mull over this thing
overnight and I'll give you a ring in the morning.
Regraded Unclassified
- 4 -
HMJr:
Will you?
G:
Yes, I will.
HMJr:
And some way that we can do it legally.
G:
I understand.
HMJr:
The Russians have a way.
G:
Yeah. But there are a little different factors
there. I'll talk to Ralph Gough and maybe
General Bryan in charge of prisoners-of-war on
the thing.
HMJr:
Thank you.
G:
Okay. Thanks.
Regraded Unclassified
41
SECRETARY'S SCHEDULE
APPEARANCE before CONGRESSIONAL COMMITTEES
Thursday, April 20
2:00 p.m. - Speaker Rayburn's office
Attending: Chairmen of House committees
Mr. McCormack, Majority Leader (2) not ettend wey
Speaker Rayburn
6
Secretary Morgenthau
Mr. Acheson (to go with Treasury group)
Mr. Smith
Mr. White
Mr. O'Connell
(Mr. Acheson to be notified by
Mr. O'Connell)
Friday, April 21
10:00 a.m. - Senator Barkley's office
Attending: Mr. Barkley
Mr. Connally
Mr. Wagner
(Same State and Treasury group which
attended Thursday's meeting)
10:30 a.m. - Senate Banking Committee Room
Attending: Three Senate Committees
Secretary Morgenthau
Mr. White
Mr. Smith
Mr. O'Connell
Mr. Bernstein
Mr. Luxford
Mr. Acheson
Mr. Collado
Mr. Pasvolski
2:00 p.m. - House Banking Committee Room
Attending: The 10:30 a.m. group
4:30 p.m. - Secretary's office - Press conference,
Mr. Acheson invited
Regraded Unclassified
42
April 20, 1944
2:40 p.m.
APPEARANCE BEFORE CONGRESSIONAL COMMITTEES
Present: Mr. White
Mr. O'Connell
Mrs. Klotz
Mr. Smith
H.M.JR: I have seven minutes and I wondered if you
thought this would be good bail, for me to cail up
Chairman Eccles and say, "Look, Marriner, you weren't
here when I opened the meeting and asked, if & man
didn't agree, that he would say so publicly."
Then I would say, "Now look, Marriner, you would be
interested to know that I have just gotten word from the
President that if there is 8. meeting, I am going to be
Chairman of the delegation, and I hope that you will
go along with us sufficiently, because I am looking
forward to having you on that delegation."
MR. O'CONNELL: I don't know how far--
MR. WHITE: I would say the latter part. I think
you are asking him not to say anything against it. I
doubt whether he would agree, if you put it that way.
If you would say not to say anything against it
until he hadbad a chance to talk it over with you--
H.M.JR: What has Eccles done about a public
statement? What has he agreed to?
MR. SMITH: Luxford was sending that, were you?
MR. WHITE: We haven't asked him yet. We thought
we would wait until the day before.
Regraded Unclassified
43
- 2 -
H.M.JR: Eccles is smart. When I say, "I hope you
will go along because I am going to be Chairman of the
delegation"--
MR. WHITE: That statement, I think, would be a
pretty good one to make.
H.M.JR: That is pretty much of a bribe.
MR. WHITE: I think I would put it, "...because I
want you on there and you appropriately belong on there."
Then say, coupled with the request not to say any-
thing publicly - - I can see your point--
H.M.JR: Maybe you don't have to say the other.
MRS. KLOTZ: It all depends on the way you put it.
I think you can put it all right.
H.M.JR: I can't do it in the next five minutes.
MR. WHITE: He is liable to talk long.
H.M.JR: No, I have been cutting corners all day
long.
Look, old man, on the way down, talk to me about this
thing.
One of the first things I learned in direct mail,
never thank a man in advance for something if you are
going to ask him & favor.
MR. SMITH: I have never even seen it. I have never
read it.
H.M.JR: I can't get this through War Bonds. Before
I do anything, you have got to pass on it. They send
twenty-seven thousand telegrams, which I am not going
to do. They can go by letter. Twenty-seven thousand
telegrams is bad public relations.
Regraded Unclassified
44
- 3 -
MR. SMITH: That is & lot of them.
H.M.JR: Yes, he said SO. It is bad public relations,
and the whole thing is bad.
I am sorry if War Bonds annoy you (Smith).
MR. SMITH: You do want Acheson at your press
conference today, don't you?
H.M.JR: Yes, I think 80.
MR. SMITH: We asked him to come. He is going to
check with Mr. Hull.
H.M.JR: Is he coming here?
MR. O'CONNELL: At a quarter of.
MR.SMITH: Do you want to take your speech along
with you?
H.M.JR: Yes.
MR. SMITH: I hope it is done.
H.M.JR: Where is Mr. Acheson?
MR. WHITE: de will be here at a quarter of.
Regraded Unclassified
45
April 20, 1944
4:15 p.m.
Re: PRESS CONFERENCE
Present: Mr. White
Mr. Smith
Mrs. Klotz
Mr. Luxford
Mr. Bernstein
Mr. Shaeffer
H.M.JR: Charlie, I want you to get this over
to State before my press conference. Mr. Hull, Mr.
Acheson tells us, doesn't want Dean Acheson to come to
the press conference because anything he does, he wants
to do himself!
Dean said Mr. Hull was very much annoyed because
somebody in the State Department made a speech the other
day. He doesn't like any publicity in connection with
it unless he, Mr. Hull, has it himself.
MR. WHITE: Would he have wanted to come up with
you to meet these people?
H.M.JR: I don't know.
MR. WHITE: I mean the leaders?
H.M.JR: Maybe. You know this is very unusual.
MR. WHITE: Does Hull want to appear before these
Committees?
H.M.JR: I don't know. Dean said I turned this
thing around. Hull doesn't like Berle. He said I
turned this around. Hull wants to get the publicity and
I don't want to get my name in the paper to get the old
man upset in any way.
Regraded Unclassified
46
- 2 -
He says he is very peculiar. That is why I took
Dean for 8. walk.
MR. WHITE: I wonder if you would want to call Hull
up.
H.M.JR: No, I think it is all right.
MR. WHITE: We have a Russian delegation. They
will have to go back.
H.M.JR: You can all go out, but let me read this,
please.
MR. WHITE: I will be back in a few minutes.
H.M.JR: It will be too late. You have me saying
something, and I have to settle these things.
MR. WHITE: All right.
(Mr. White leaves the conference temporarily)
H.M.JR: I want those three men in.
(Mr. Luxford and Mr. Bernstein enter the conference)
H.M.JR: Why do you put more stuff in now at the last
minute?
MR. SMITH: The only reason is because Smith is on
our trail.
H.M.JR: You can't answer it.
MR. SMITH: But he has a good press.
H.M.JR: But you can say things that will get me a
bad press.
(Mr. White re-entered the conference)
Regraded Unclassified
47
- 3 -
MR. WHITE: I adjourned the meeting.
MR. SMITH: This is the way it was. (Deletes several
sentences from the Secretary's draft of statement)
H.M.JR: Now the rest is the same?
MR. SMITH: Just the same except for some minor
things, and the change you made on the last page about
Mr. Roosevelt.
Now, here was another change you suggested making:
"International cooperation on monetary and financial
matters is the keystone of successful cooperation on all
international and economic problems. Unless we can agree
to expand and develop the world economy, few other agree-
ments which we might make will or can be effective."
H.M.JR: Can I see that, please?
MR. SMITH: That was where you got your "keystone"
in, remember?
H.M.JR: I think that is all right. Anybody not
think that is all right - since Hull is so sensitive on
the thing?
MR. LUXFORD: I think it is very good.
MR. WHITE: You might stick in "...the world economy."
MR. SMITH: It is in there.
H.M.JR: It says, "Unless we can agree to expand and
develop the world economy, few other agreements which we
might make will or can be effective.
MR. WHITE: "Unless we agree to expand world trade
and economy" - everybody is in favor of world trade.
H.M.JR: "To develop world trade"?
MR.
WHITE: "...expand world trade."
Regraded Unclassified
48
- 4 -
MR. SMITH: He wants to put "world trade" as well
as "economy." He wants to say "world economy and world
trade."
MR. BERNSTEIN: "Expand world trade and develop
world economy."
MR. WHITE: That would be better.
H.MJR: Everything else is practically the same?
MR. SMITH: Yes. And then the last page is the
thing you dictated word for word.
H.M.JR: Now, one thing I want to do when this is
over. Those telegrams that we have, all these invitations,
those all ought to be answered over my signature tomorrow.
Do you have anybody in your office can do it?
MR. SMITH: I will find somebody.
H.M.JR: Tell Charlie to draft some telegrams.
MR. SMITH: We have about six more now.
H.M.JR: Whatever they are - because Rayburn said
to me, "Be sure to let Patman know yourself. So as long
as we are going to do it, the more people we are doing
a personal favor to, the better. I would like those to
go out tomorrow.
MR. LUXFORD: How did it go on the Hill?
H.M.JR: Very well.
Regraded Unclassified
april/9,/944
Draft # 1
This is a geat stip forward. &ts 49
metary matters
on 1 nosel-war
Gentlemen:
I am happy to tell you today that the technical experts
of thirty United Nations including our own and those of Great
Britain have agreed upon a set of basic principles to govern
an International Monetary Stabilization Funds # The experts of
Representative of
some of these nations have prepared a joint statement of the
30
particular
principles. I want to call your attention to some of the fact
contained in this joint statement, but before I do that, I
should like to take a few moments of your time to review with
you some of the things that have happened since I last appear
before these Committees on October 5 of last year. At that tin
I told you I would like to keep you informed of progress, and
appreciate
accordingly I grateful for this opportunity to bring you
up to date.
requesentative
Shortly after our meeting last October, many of the
that existed ther
differences of opinion between the exports of this country and
those of the United Kingdom were resolved in & cories of
between representatives of the two nations. Lord
John Maynard Keynes headed a Butick n delegation to this country, and
spent a month conferring with representatives of the the Treasury
and other governmental departments. Since they returned,
correspondence with them has cleared up the remaining
points of difference have hear cleaned ap Through
conseponders
Regraded Unclassified
50
- 2 -
In January of this year & delegation came to Washington
from the U.S.S.R. and conferences with this group have been
and
almost continuous up to the present time, Practically no
important points of difference remain to be settled between
the nepresentatives of our two countries
We have been in agreement with the Chinese since before
my lact appearance here,
the October meeting, and the meetings we have had with them
since that time have been called chiefly to keep them up to
date. This is also the case with numerous other countries,
most of whom were in agreement as early as May and June of last
year.
Since I last talked to you, we have taken steps in another
direction. We have discussed the principles of International
Stabilization and World Bank mogiams plans with bankers, labor
representatives and other interested groups in Washington,
Chicago, Boston, Philadelphia, New York, Richmond and other
came
major cities. Out of these meetings - people received.,
great many helpful suggestions and I believe it is safe to
say that the vast majority of those who are inclined to look
we found
favorably upon the principles of controlling currencies and
values on an international basis at the Government level, are
in fundamental agreement with our plans and principles. marry
opposition that we have encountered has been largely the opposition
to the basic principle of creating In International Stabilization
Regraded Unclassified
51
- 3 -
Fund,' and although there seems to be some difference of
opinion on this subject among those in control of the central
donbt
banking systems of the various nations, there is no deviation
among the monetary experts of any of the nations, from the
convistion that such an international fund is essential if the
world economy is not to be threatened after the cessation of
and umemhreeaber
hositlities, by uncontrolled currencies. To ***** state it
briefly, 7he the consensus of these experts is that private
investment on a world wide basis is vital to post-war reeovery
and reconstruction, and that the stabilization of
to this mustment
currencies among the United Nations is a necessary prerequisites
We cannot expect American business men, nor business men of any
nation to take major financial risks without some assurance
that his their investments will not be spepardized damaged by fluctuating money
values.
Having studied the world picture after the last war, these
we and all
monotary exports are agreed that steps must be taken to prevent,
insofar as possible, unavoidable fluctuations of currency; and
to prohibit deliberate manipulation of currencies in an effort to repair
the fiscal damage done by the war.
Insofar as the proposed world bank is concerned, considerable
progress has been made since our October 5 meeting. American
technical exports men and interested agencies such as the export-
import bank, and labor representatives, and other interested
Regraded Unclassified
52
- 4 -
groups have held conferences in Washington. Representatives
of the United Kingdom, of Russia, of China, Cuba, Yugoslavia,
and Poland have met to exp lore the problems and projected the solutions
as suggeståd in the world bank plan. I can say that there is
considerable support for the general principles embodied in
the world bank, although no joint statement has yet been agreed
upon by these nations.
on the would Bank
Because these discussions were initiated somewhat later
they have not yet been completely finkshed. I can tell you,
however, that considerable progress has been made and that we
believe we have the basis for agreement among the technical
experts of the United Nations. There is every indication now
that the technical experts will soon issue a statement of
principles setting forth their recommendations on the
establishment of a Bank for Reconstruction and Development.
All of the countries with whom our technical experts have
discussed this problem regard the revival of international
investment after the war as essential to the expansion of
international trade and the maintenance of a high level of
business activity. This will be possible only if steps are
taken to encourage and aid private investors in providing an
adequate volume of long-term investment capital for productive
purposes,
Regraded Unclassified
53
- 5 -
The discussions we have had contemplate the establishment
of 8. Bank for Reconstruction and Development which will facilitate
the provision of long-term investment capital through private
financial agencies by guaranteeing and participating in loans
made by private investors. The Bank would also supplement
investment of private financial agencies if this becomes
necessary by lending for productive purposes from its own
resources when private capital is otherwise not available on
reasonable terms.
N
A full statement of the recommendations of the experts
on the establishment of 8. Bank for Reconstruction and Development
and of the principles on which such a Bank should be based is
still in preparation. It is my hope that this statement of
principles will soon be completed and that it will be issued
later. Before it is published, I shall inform your committees
of the recommendations of the experts of the United Nations.
Now I should like to explain some of the basic principles
upon which we are all agreed in connection with the International
Stabilization Fund.
Here are the purposes and policies as set forth in the
joint statement:
space
Regraded Unclassified
54
- 6 -
(1) To promote international monetary cooperation
through a permanent institution which provides the
machinery for consultation on international monetary
problems.
(2) To facilitate the expansion and balanced growth of
international trade and to contribute in this way
to the maintenance of a high level of employment and
real income, which must be a primary objective of
economic policy.
(3) To give confidence to member countries by making the
Fund's resources available to them under adequate
safeguards, thus giving members time to correct
maladjustments in their balance of payments without
resorting to measures destructive of national or
international prosperity.
(4) To promote SXXXX exchange stability, to maintain
orderly exchange arrangements among member countries,
and to avoid competitive exchange depreciation.
(5) To assist in the establishment of multilateral pay-
ments facilities on current transactions among member
countries and in the elimination of foreign exchange
restrictions which hamper the growth of world trade.
(6) To shorten the periods and lessen the degree of dis-
equilibrium in the international balance of payments
of 1 member countries.
Regraded Unclassified
55
- 7 -
The joint statement further explains that
All of the
United and Associated Nations would subscribe approximately
$8 billion to the Fund in the form of gold and local currency.
The resources of the Fund would be available under adequate
safeguards to help member countries to maintain exchange
stability while they correct maladjustments in their balance
of payments. Member countries would be able to buy foreign
exchange from the Fund with their own currencies, to the extent
of their quotas, to meet international payments consistent with
the purposes of the Fund. If 8. member country makes use of
the Fund in a manner contrary to its purposes and policies,
the Fund would give appropriate notice that it would sell
additional exchange to the member country only in limited
amounts and under specific conditions.
The par value of currencies of member countries would be
expressed in gold and could be changed only at the request of
member countries after consultation with the Fund and with its
approval. The Fund would approve a requested change in parity
only if it were essential to correct fundamental disequilibrium.
Prompt consideration would be given to requests for necessary
adjustment of exchange rates.
Voting power in the Fund would be closely related to
quotas. A member country could withdraw from the Fund
immediately by giving notice in writing. Thereafter, the
Regraded Unclassified
56
- 8 -
reciprocal obligations of the Fund and the country would be
liquidated within a reasonable time.
Member countries would not allow their exchange rates to
fluctuate outside a prescribed range based on the agreed gold
parity. They would not impose restrictions on payments for
current international transactions or engage in discrimimatory
currency practices without approval of the Fund.
During the period of transition following the war, member
countries would be permitted to retain their exchange controls
with the expectation that these would be gradually relaxed.
Three years after the establishment of the Fund any member
still retaining restrictions inconsistent with these principles
would consult with the Fund as to their retention.
I am frank to say that in my opinion the agreement of the
technical experts to these principles is the most important
development on international monetary policy in this generation.
The way to prevent a breakdown of currencies and the imposition
and retention of restrictive and discriminatory stay exchange
measures after the war is by providing now for international
cooperation to assure a stable and orderly pattern of exchange
rates. The purposes set forth in this Joint Statement have long
been the international menetary policies of the United States.
For years it has been our objective to have these policies adopted
by other countries. We know of no better way of assuring general
Regraded Unclassified
57
- 9 -
adherence to these international monetary policies than through
international cooperation in an International Monetary Fund.
if
Regraded Unclassified
mystlp on
58
we make will n can
your required me of
The discussions we have had contemplate the establishment of a
Bank for Reconstruction and Development which will facilitate the
provision of long-term investment capital through private financial
agencies by guaranteeing and participating in loans made by private
investors. The Bank would also supplement investment of private
financial agencies if this becomes necessary by lending for productive
purposes from its own resources when private capital is otherwise not
available on reasonable terms.
A full statement of the recommendations of the experts on the
establishment of a Bank for Reconstruction and Development and of
the principles on which such a Bank should be based is still in pre-
paration. It is my hope that this statement of principles will soon
be completed and that it will be issued later. Before it is published,
I shall inform your committees of the recommendations of the experts
of the United Nations.
We believe that it is of the greatest importance that all of the
United Nations are in agreement on the best means to deal with these
international financial problems after the war. This is concrete
evidence that the United Nations can and will work together in
establishing a peaceful and prosperous world just as they are now
fighting together to destroy tyranny and oppression.
believe at cm
The tentative proposals that have been under discussion by the
technical experts are part of a program for cooperation on international
economic problems among the United Nations. The objectives of this
program are the expansion and development of international trade, the
imperedimion
restoration of international investment for productive purposes, the
Mentin en the burt in the spectmy point intent 1
Regraded Unclassified
59
- 6 -
maintenance of stable and orderly exchanges, and through these means
to contribute to a high level of employment and production. The
establishment of an International Monetary Fund and a Bank for
Reconstruction and Development are important steps in the attainment
of the objectives of this broad program.
I wan to emphasize again that the discussions up to now have all
been of a technical nature and exploratory in character. Whatever has
been done represents the views of the technical experts of this country
and of other countries that have been 8 tudying these questions. No
country, including the United States, will be committed until there has
been a formal conference which will draft definite proposals to be sub-
mitted to Congress for its action. It is my hope that after studying the
recommendations of the technical experts, the governments of the United
Nations will come to the conclusion that there is sufficient basis of
agreement at a technical level to warrant the convening of a formal
conference. I am happy to say that the President has authorized me to
state that if a conference is held, the American delegation would pro-
bably include representatives of both houses of Congress.
Regraded Unclassified
Draft #2
4-19-44
60
Gentlemen:
I am happy to tell you today that the technical experts
of thirty United Nations including our own and those of Great
Britain have agreed upon a set of basic principles to govern
an International Monetary Stabilization Fund. This is a great
step forward. Its importance on post-war monetary matters
cannot be overemphasized; and this agreement is a valuable asset,
also to those of us who believe that the nations of the world
can and will agree on matters that control our international
economic and social well-being. This is the first major step
to be contemplated in post-war international cooperation; its
success to date is, I believe, prophetic.
Representatives of some of these thirty nations have
prepared a joint statement of the principles which have been
agreed upon. I want to call particular attention to some of
the facts contained in this joint statement, but before I do
that, I should like to take a few moments of your time to re-
view with you some of the things that have happened since I
last appeared before these Committees on October 5 of last
year. At that time, I told you I would like to keep you
informed of progress, and accordingly I appreciate this
opportunity to bring you up to date.
Regraded Unclassified
61
- 2 -
Shortly after our meeting last October, a series of
conferences were held in which many of the differences of
opinion that existed then between representatives of this
country and those of the United Kingdom were resolved.
Lord John Maynard Keynes headed & British delegation to this
country, and spent 8. month conferring with representatives
of the Treasury and other governmental departments. Since
their return to their own country the remaining points of
difference have been cleared up through correspondence.
In January of this year a delegation came to Washington
from the U.S.S.R. and conferences with this group have been
almost continuous up to the present time, and practically no
important points of difference remain to be settled.
We have been in agreement with the Chinese since before
my last appearance here, and the meetings we have had with
them since that time have been called chiefly to keep them up
to date. This is also the case with numerous other countries,
most of whom were in agreement as early as May and June of
last year.
Since I last talked to you, we have taken steps in another
direction. We have discussed the principles of International
Stabilization and World Bank programs with bankers, labor
Regraded Unclassified
62
- 3 -
representatives and other interested groups in Washington,
Chicago, Boston, Philadelphia, New York, Richmond and other
major cities. Out of these meetings came many helpful
that
suggestions. I believe it is safe to say that we found the
vast majority of those who are inclined to look favorably
upon the principle of controlling currencies and values on
an international basis at the Government level, are in
fundamental agreement with our plans and principles. Any
opposition that we have encountered has been largely opposition
to the basic principle of creating an International Stabilization
Fund, and although there seems to be some difference of opinion
on this subject among those in control of the central banking
systems of the various nations, there is no doubt among the
monetary experts of any of the nations, that such an inter-
national fund is essential if the world economy is not to be
threatened after the cessation of hostilities, by uncontrolled
and uncontrollable currencies. The consensus of these experts
is that private investment on a world wide basis is vital to
post-war recovery and reconstruction, and that the stabili-
zation of currencies among the United Nations is a necessary
prerequisite to this investment. We cannot expect American
business men, nor business men of any nation, to take major
Regraded Unclassified
63
- 4 -
financial risks without some assurance that their investments
will not be jeopardized by fluctuating money values.
Having studied the world picture after the last war, we
are all agreed that steps must be taken to prevent, insofar
as possible, unavoidable fluctuations of currency; and to
prohibit deliberate manipulation of currencies in an effort
to repair the fiscal damage done by the war.
Insofar as the proposed world bank is concerned, considerable
progress has been made since our October 5 meeting. American
technical men and interested agencies such as the export-import
bank, and labor representatives, and other interested groups
have held conferences in Washington. Representatives of the
United Kingdom, of Russia, of China, Cuba, Yugoslavia, and
Poland have met to explore the problems and projected solutions
as suggested in the World Bank Plan. I can say that there is
considerable support for the general principles embodied in
the World Bank, although no joint statement has yet been agreed
upon by these nations.
Because discussions on the World Bank were initiated some-
what later they have not yet been completely finished. I can
tell you, however, that considerable progress has been made and
that we believe we have the basis for agreement among the
Regraded Unclassified
64
- 5 -
technical experts of the United Nations. There is every
indication now that the technical experts will soon issue a
statement of principles setting forth their recommendations
on the establishment of a Bank for Reconstruction and
Development.
All of the countries with whom our technical experts have
discussed this problem regard the revival of international
investment after the war as essential to the expansion of
international trade and the maintenance of a high level of
business activity. This will be possible only if steps are
taken to encourage and aid private investors in providing an
adequate volume of long-term investment capital for productive
purposes.
The discussions we have had contemplate the establishment
of & Bank for Reconstruction and Development which will
facilitate the provision of long-term investment capital through
private financial agencies by guaranteeing and participating in
loans made by private investors. The Bank would also supplement
investment of private financial agencies if this becomes
necessary by lending for productive purposes from its own
resources when private capital is otherwise not available on
reasonable terms.
Regraded Unclassified
65
- 6 -
A full statement of the recommendations of the experts on
the establishment of a Bank for Reconstruction and Development
and of the principles on which such & Bank should be based is
still in preparation. It is my hope that this statement of
principles will soon be completed and that it will be issued
later. Before it is published, I shall inform your committees
of the recommendations of the experts of the United Nations.
Now I should like to explain some of the basic principles
upon which we are all agreed in connection with the International
Stabilization Fund.
Here are the purposes and policies as set forth in the
joint statement:
(1) To promote international monetary cooperation through
a permanent institution which provides the machinery
for consultation on international monetary problems.
(2) To facilitate the expansion and balanced growth of
international trade and to contribute in this way to
the maintenance of a high level of employment and real
income, which must be a primary objective of economic
policy.
(3) To give confidence to member countries by making the
Fund's resources available to them under adequate
Regraded Unclassified
66
- 7 -
safeguards, thus giving members time to correct
maladjustments in their balance of payments without
resorting to measures destructive of national or
international prosperity.
(4) To promote exchange stability, to maintain orderly
exchange arrangements among member countries, and
to avoid competitive exchange depreciation.
(5) To assist in the establishment of multilateral pay-
ments facilities on current transactions among member
countries and in the elimination of foreign exchange
restrictions which hamper the growth of world trade.
(6) To shorten the periods and lessen the degree of dis-
equilibrium in the international balance of payments
of member countries.
The joint statement explains that all of the United and
Associated Nations would subscribe approximately $8 billion
to the Fund in the form of gold and local currency. The
resources of the Fund would be available under adequate safe-
guards to help member countries to maintain exchange stability
while they correct maladjustments in their balance of payments.
Regraded Unclassified
67
- 8 -
Member countries would be able to buy foreign exchange from
the Fund with their own currencies, to the extent of their
quotas, to meet international payments consistent with the
purposes of the Fund. If a member country makes use of the
Fund in a manner contrary to its purposes and policies, the
Fund would give appropriate notice that it would sell additional
exchange to the member country only in limited amounts and under
specific conditions.
The par value of currencies of member countries would be
expressed in gold and could be changed only at the request of
member countries after consultation with the Fund and with its
approval. The Fund would approve 8. requested change in parity
only if it were essential to correct fundamental disequilibrium.
Prompt consideration would be given to requests for necessary
adjustment of exchange rates.
Voting power in the Fund would be closely related to
quotas. A member country could withdraw from the Fund
immediately by giving notice in writing. Thereafter, the
reciprocal obligations of the Fund and the country would be
liquidated within a reasonable time.
Member countries would not allow their exchange rates to
fluctuate outside a prescribed range based on the agreed gold
parity. They would not impose restrictions on payments for
Regraded Unclassified
68
- 9 -
current international transactions or engage in discriminatory
currency practices without approval of the Fund.
During the period of transition following the war, member
countries would be permitted to retain their exchange controls
with the expectation that these would be gradually relaxed.
Three years after the establishment of the Fund any member
still retaining restrictions inconsistent with these principles
would consult with the Fund as to their retention.
I am frank to say that in my opinion the agreement of the
technical experts to these principles is the most important
development on international monetary policy in this generation.
The way to prevent a breakdown of currencies and the imposition
and retention of restrictive and discriminatory exchange
measures after the war is by providing now for international
cooperation to assure a stable and orderly pattern of exchange
rates. The purposes set forth in this Joint Statement have
long been the international monetary policies of the United
States. For years it has been our objective to have these
policies adopted by other countries. We know of no better
way of assuring general adherence to these international monetary
policies than through international cooperation in an
International Monetary Fund.
Regraded Unclassified
69
- 10 -
We believe that it is of the greatest importance that all
of the United Nations are in agreement on the best means to
deal with these international financial problems after the war.
This is concrete evidence that the United Nations can and will
work together in establishing a peaceful and prosperous world
just as they are now fighting together to destroy tyranny and
oppression. And I believe it can be said that international
cooperation on this front is the starting point of international
cooperation on all fronts. Unless we agree to respect and
protect the world economy, few other agreements which we might
make will or can be effective.
The tentative proposals that have been under discussion
by the technical experts are part of & program for cooperation
on international economic problems among the United Nations.
The objectives of this program are the expansion and development
of international trade, the restoration of international invest-
ment for productive purposes, the maintenance of stable and
orderly exchanges, and through these means to contribute to
a high level of employment and production. The establishment
of an International Monetary Fund and a Bank for Reconstruction
and Development are important steps in the attainment of the
objectives of this broad program.
Regraded Unclassified
70
- 11 -
I want to emphasize again that the discussions up to now
have all been of a technical nature and exploratory in
character. Whatever has been done represents the views of
the technical experts of this country and of other countries
that have been studying these questions. No country, including
the United States, will be committed until there has been 8.
formal conference which will draft definite proposals to be
submitted to Congress for its action. It is my hope that after
studying the recommendations of the technical experts, the
governments of the United Nations will come to the conclusion
that there is sufficient basis of agreement at a technical
level to warrant the convening of a formal conference. I
am happy to say that the President has authorized me to state
that if a conference is held, the American delegation would
probably include representatives of both houses of Congress.
Regraded Unclassified
Draft #3
71
4-20-44
Gentlemen:
I am happy to tell you today that technical experts of
the United Nations have agreed upon a set of basic principles
for an International Monetary Stabilisation Fund. This is a
great step forward. Its significance can lardly to exaggerated.
the
It is of greatest importance to all of us who believe that the
nations of the world can cooperate in dealing with international
economic problems. This is the first major move to be con-
sconomic
templated in post-war international cooperation; and its success
to date is, I believe, prophetic.
Technicians representing some of these thirty nations have
prepared a. joint statement of the principles which are agreed
upon. This statement does not, of course, bind any government
to participate in the Stabilization Fund, though it does mean
that the Fund will be recommended to each of the governments as
a practical means of meeting post-war monetary problems.
I want to call particular attention to some of the facts
contained in this joint statement, but before I do that, I
should like to review with you some of the things that have
happened since I appeared before these Committees on October 5
of last year. At that time, I told you I would like to keep
you informed of progress, and accordingly I appreciate this
opportunity to bring you up to date.
Regraded Unclassified
72
- 2 -
Since I last talked to you, we have discussed the principles
of the International Stabilization program with bankers, labor
representatives and other interested groups in Washington,
Chicago, Boston, Philadelphia, New York, Richmond and other
cities. Out of these meetings came helpful suggestions, many
of which were incorporated in our plans. I-might mention one
in particular: the Foreign Exchange Committee of the New York
market, including representatives of the leading New York
banks and one Canadian bank, came to Washington to disouss with
ne this tentative proposal. During the conference, they pointed
but the desirability of requiring the Fund to give appropriate
notice before terminating the right of a member country to
purchase foreign exchange for local currency. As a result of
this discussion, a basic provision to this end has been in-
corporated into the Joint Statement.
The vast majority of those with whom we have talked are
inclined to look favorably upon the principle of cooperation
to maintain stable and orderly exchange rates. Informed opinion
seems to point to private investment on & world wide basis as
vital to post-war recovery and reconstruction; and the stabili-
zation of currencies among the United Nations through the medium
of an international fund, is generally believed to be &
necessary prerequisite to this investment. I believe we
Regraded Unclassified
73
- 3 -
cannot expect American business men, nor business men of any
nation, to take major financial risks, immediately upon the
heels of & catastrophic global war, without some assurance
that steps have been taken to prevent their investments from
being jeopardized by unduly fluctuating money values, and reverterely respons
Having studied the world picture after the last war, we
are all agreed that steps must be taken to prevent, insofar
as possible, harmful fluctuations of currency; and to prohibit
deliberate manipulation of currencies in an effort to secure
unfair competitive advantage in world trade.
I want to point out that we have kept the interests of
the American e conomy very much in mind in planning the type of
international cooperation set forth in the statement of prin-
ciples.
As one might expect, especially in our election year,
there is, occasionally, some uninformed comment to the effect
that the United States will suffer as a result of International
cooperation in the monetary and economic fields. Some suggestion
has been heard that we cannot become an important force in world
reconstruction without compromising our own sovereignty.
I believe it is obvious to all reasonable and informed
people that in a world as small as ours has come to be, American
Regraded Unclassified
74
- 3a -
business, and accordingly, the American economy, cannot move
forward while the economies of other nations slip backward.
There would be slight advantage in our being the wealthiest
nation in the Universe if all the other nations in the world
had little or no wealth, and if all the other nations' stan-
dards of living were so far beneath our own that international
business and commerce would be impossible.
Address,
There is no reason or logic in the statement
that all the other nations in the world can prosper only at
our expense; but there is both reason and logic in the assertion
that the stability and progress of our own economy can be
sabotaged by seriously fluctuating situations in the nations with
which we must live and trade.
Thus it becomes of vital importance to every nation in
the world, including our own, to seek cooperation of all other
nations in maintaining steady and dependable monetary and
economic policies. That is what we have set out to do. That
is all we have set out to do. We have not planned, nor per-
mitted to be planned, an international Shave-the-Wealth scheme.
When I was here on October 5, I spoke of a projected international
bank for reconstruction and development.
Because discussions on the Bank were initiated some-
what later they have not yet been completely finished. I can
Regraded Unclassified
75
- 3b -
tell you, however, that there is considerable support for the
general principles embodied in the World Bank, and that good
progress has been made. We believe that already we have the
basie for agreement among the technical experts of the United
Nations,
All of the international representatives with whom we
have discussed the problem of reviving international invest-
ment after the war regard the - Bank as essential to the
expansion of international trade and the maintenance of a high
Regraded Unclassified
76.
- 4
level of business activity. They believe it necessary to take
steps to encourage and aid private investors in providing an
adequate volume of long-term investment capital for productive
purposes.
The discussions we have had contemplate the establishment
of a Bank for Reconstruction and Development which will
facilitate the provision of long-term investment capital through
private financial agencies by guaranteeing and participating in
loans made by private investors. The Bank would also supplement
investment of private financial agencies if this becomes
necessary by lending for productive purposes from its own
resources when private capital is otherwise not available on
reasonable terms.
& full statement of the recommendations of the experts on
the establishment of a Bank for Reconstruction and Development
and of the principles on which such a Bank should be based is
still in preparation. It is my hope that this statement of
principles will soon be completed and that it will be issued
later. Before it is published, I shall inform your committees
of the recommendations of the experts of the United Nations.
Now I should like to explain briefly some of the basic.
principles upon which the technicians are agreed in connection
Regraded Unclassified
77
- 5 -
with the International Monetary Fund.
Here are the purposes and policies as set forth in the
joint statement:
(1) To promote international monetary cooperation through
a permanent institution which provides the machinery
for consultation on international monetary problems.
(2) To facilitate the expansion and balanced growth of
international trade and to contribute in this way to
the maintenance of & high level of employment and real
income, which must be & primary objective of economic
policy.
(3) To give confidence to member countries by making the
Fund's resources available to them under adequate
safeguards, thus giving members time to correct
maladjustments in their balance of payments without
resorting to measures destructive of national OF
international prosperity.
(4) To promote exhhange stability, to maintain orderly
exchange arrangements among member countries, and
to avoid competitive exchange depreciation.
(5) To assist in the establishment of multilateral pay-
ments facilities on current transactions among member
Regraded Unclassified
78
- 6 -
countries and in the elimination of foreign exchange
restrictions which hamper the growth of world trade.
(6) To shorten the periods and lessen the degree of dis-
squilibrium in the international balance of payments
of member countries.
The joint statement recommends that all of the United and
Associated Nations world subscribe approximately 38 billion
to the Fund in the form of gold and local currency. The
resources of the Fund would be available under adequate safe-
guards to help member countries to maintain exchange stability
which they correct maladjustments in their balance of payments.
Member countries would be able to buy foreign exchange from
the Fund with their own currencies, to the extent of their
quotas, to meet international payments consistent with the
purposes of the Fund. If a/member country makes use of the
Fund in a manner contrary/ to its purposes and policies, the
Fund would give appropylate notice that 1t would sell additional
exchange to the member country only in limited amounts and under
prescribed conditions.
The par value of currencies of member countries would be
expressed in gold and could be changed only at the request of
Regraded Unclassified
79
- 7 -
member countries after consultation with the Fund and with its
approval. The Fund would approve a requested change in parity
only if it were essential to correct fundamental disequilibrium.
Prompt consideration would be given to requests for necessary
adjustment of exchange rates.
Voting power in the Fund would be closely related to
quotas. A member country could withdraw from the Fund
immediately by giving notice in writing. Thereafter, the
reciprocal obligations of the Fund and the country would be
liquidated within a reasonable time.
Member countries would not allow their exchange rates to
fluctuate outside B. pressulbed range based on the agreed gold
parity They would not impose restrictions on payments for
current international transactions or engage in multiple
currency practices without approval of the Fund.
During the period of transition following the war, member
countries would be permitted to retain their exchange controls
with the expectation that these would be gradually relaxed.
Three years after the establishment of the Fund any member
still retaining restrictions inconsistent with these principles
would tonsult with the Fund as to their retention.
I am frank to say that in my opinion the agreement of the
technical experts to these principles is the most important
Regraded Unclassified
80
- 8 -
development on international monetary policy in this generation.
The way to prevent a breakdown of currencies and the imposition
and retention of restrictive and discriminatory exchange
measures after the war is by providing now for international
cooperation to assure & stable and orderly pattern of exchange
rates. The purposes set forth in this Joint Statement have
long been the international monetary policies of the United
States. For years it has been our objective to have these
policies adopted by other countries. We know of no better way
of assuring general adherence to these international monetary
policies than through international cooperation in an
International Monetary Fund.
We believe that is is of the greatest importance that all
of the United Nations are in agreement on the best means to
deal with these international financial problems after the war.
This is concrete evidence that the United Nations can and will
work together in establishing & peaceful and prosperous world
just as they are now fighting together to destroy tyranny and
oppression. And ± believe it can be said that international
cooperation on this front is the starting point of international
cooperation on alledrents. 91 Unless we agree to expand and
develop the world economy, few other agreements which we might
Regraded Unclassified
81
- 9 .
make will or can be effective.
The tentative proposals that have been under discussion
by the technical experts are part of a program for cooperation
on international economic problems among the United Nations.
The objectives of this program are the expansion anddevelopment
of international trade, the restoration of international invest-
ment for productive purposes, the maintenance of stable and
orderly exchanges, and through these means to contribute to
& high level of employment and production. The establishment
of an International Monetary Fund and a Bank for Reconstruction
and Development are important steps in the attainment of the
objectives of this broad program.
I want to emphasize again that the discussions up to now
have all been of a technical nature and exploratory in
character. Whatever has been done represents the views of
the technical experts of this country and of other countries
that have been studying these questions. The United States
not in any way to committed until Congress has taken
action.
It is my hope that after studying the recommendations of
the technical experts, the governments of the United Nations
will come to the conclusion that there is sufficient basis of
Regraded Unclassified
82
- 10 -
agreement at a technical level to warrant the convening of a
formal conference.
I am happy to say that the President has authorized me to
state that if a conference is held, the American delegation
would probably include representatives of both Houses of
Congress.
Regraded Unclassified
Draft #4
Druft stat. before Comp. Come 4-20-44
83
Gentiemen:
I am happy to teil you today that technical experts of
the United Nations have agreed upon a set of basic principles
for an International Monetary Stabilization Fund. This is 8.
great step forward. It is of greatest importance to all of
us who believe that the nations of the world can cooperate
in dealing with international economic problems. This is the
first major move to be contemplated in post war international
economic cooperation; and its success to date is, I believe,
prophetic.
)
Technicians representing some of these thirty nations have
prepared a joint statement of the principles which are agreed
upon. This statement does not, of course, bind any government
to participate in the Stabilization Fund, though it does mean
that the Fund will be recommended to each of the governments as
a practical means of meeting post-war monetary problems.
I want to call particular attention to some of the facts
contained in this joint statement, but before I do that, I
should like to review with you some of the things that have
happened since I appeared before these Committees on October 5
of last year. At that time, I told you I would like to keep
you informed of progress, and accordingly I appreciate this
opportunity to bring you up to date.
Regraded Unclassified
84
- 2 -
Since I last talked to you, we have discussed the principles
of the International Stabilization program with bankers, labor
representatives and other interested groups in Washington,
Chicago, Boston, Philadelphia, New York, and other cities.
Out of these meetings came helpful suggestions, many of which
were incorporated in our plans.
The vast majority of those with whom we have talked are
inclined to look favorably upon the principle of cooperation
to maintain stable and orderly exchange rates. Informed opinion
seems to point to private investment on a world wide basis as
vital to post-war recovery and reconstruction; and the stabili-
zation of currencies among the United Nations through the medium
of an international fund, is generally believed to be a
necessary prerequisite to this investment. I believe we
cannot expect American business men, nor business men of any
nation, to take major financial risks, immediately upon the
heels of a catastrophic global war, without some assurance
that steps have been taken to prevent their investments from
being jeopardized by unduly fluctuating money values and
severe exchange restrictions.
Having studied the world picture after the last war, we
an effort made
are all agreed that shops must be taken to prevent, insofar as
Regraded Unclassified
85
- 3 -
possible, harmful fluctuations of currency; and to prohibit
deliberate manipulation of currencies in an effort to secure
unfair competitive advantage in world trade.
I want to point out that we have kept the interests of
the American economy very much in mind in planning the type of
international cooperation set forth in the statement of prin-
ciples.
As one might expect, especially in our election year,
there is, occasionally, some uninformed comment to the effect
that the United States will suffer as A result of International
cooperation in the monetary and economic fields. Some suggestion
has been heard that we cannot become an important force in world
reconstruction without compromising our own sovereignty.
I believe it is obvious to all reasonable and informed
people that in a world as small as ours has come to be, American
business, and accordingly, the American economy, cannot move
forward while the economies of other nations slip backward.
There is no reason or logic in the statement that all the
other nations in the world can prosper only at our expense; but
there is both reason and logic in the assertion that the
stability and progress of our own economy can be sabotaged
Regraded Unclassified
86
- 3a -
by seriously fluctuating situations in the nations with which
we must live and trade.
Thus it becomes of vital importance to every nation in
the world, including our can, to seek cooperation of all other
nations in maintaining steady and dependable monetary and
economic policies That is what we have set out to do. That
is all we have set out to do. We have not planned nor permitted
to be planned, as some commentators would have the American
public believe, an international Share the Wealth scheme.
When I was here on October 5, I spoke of a projected
International bank for reconstruction and development.
Because discussions on the Bank were initiated somewhat
later they are not yet completely finished. I can tell you,
however, that there is considerable support for the general
principles embodied in the World Bank, and that good progress
has been made.
Three
The international representati ves with whom we have
Prat was
discussed the problem of reviving international investment
after the was regard the bank as essential to the expansion
of international trade and the maintenance of a high
Regraded Unclassified
87
- 4 -
level of business activity. They believe it necessary to take
steps to encourage and aid private investors in providing an
adequate volume of long-term investment capital for productive
purposes.
The discussions we have had contemplate the establishment
of a Bank for Reconstruction and Development which will to
facilitate the provision of long-term investment capital through
private financial agencies by guaranteeing and participating in
loans made by private investors. The Bank would also supplement
investment of private financial agencies, if this becomes
necessary, by lending for productive purposes from its own
resources when private capital is otherwise not available on
reasonable terms.
A full statement of the recommendations of the exports on
such
the establishment of a Bank, Bank for Reconstruction and Development
and of the principles on which such a Bank should be based is
still in preparation It is my hope that this statement of
by technology
principles will soon be completed and that it will be issued
later. Before it is published, I shall fully inform your committees.
of the recommendations of the experts of the United Nationa.
Now I should like to explain briefly some of the basic
principles upon which the technicians are agreed in connection
Regraded Unclassified
88
- 5 -
with the International Monetary Fund.
Here are the purposes and policies as set forth in the
joint statement:
(1) To promote international monetary cooperation through
a permanent institution which provides the machinery
for consultation on international monetary problems.
(2) To facilitate the expansion and balanced growth of
international trade and to contribute in this way to
the maintenance of a high level of employment and real
income, which must be a primary objective of economic
policy.
(3) To give confidence to member countries by making the
Fund's resources available to them under adequate
safeguards, thus giving members time to correct
maladjustments in their balance of payments without
resorting to measures destructive of national or
international prosperity.
(4) To promote exchange stability, to maintain orderly
exchange arrangements among member countries, and
to avoid competitive exchange depreciation.
(5) To assist in the establishment of multilateral pay-
ments facilities on current transactions among member
countries
Regraded Unclassified
89
- 6 -
and to and in
countries and in the elimination of foreign exchange
restrictions which hamper the growth of world trade.
(6) To shorten the periods and lessen the degree of dis-
equilibrium in the international balance of payments
of member countries.
The joint statement recommends that all of the United and
Associated Nations subscribe approximately $8 billion to the
Fund in the form of gold and local currency. The resources of
the Fund would be available under adequate safeguards to help
is
and to
member countries to maintain exchange stability which they
correct maladjustments in their balance of payments. Member
countries would be able to buy foreign exchange from the Fund
in order
with their own currencies, to the extent of their quotas, to
meet international payments consistent with the purposes of
the Fund.
The par value of currencies of member countries would be
expressed in gold and could be changed only at the request of
and approval of
member countries after consultation with the Fund and with Les
approval. The Fund would approve a requested change in parity
only if it were essential to correct fundamental disequilibrium.
Prompt consideration would be given to requests for necessary
Regraded Unclassified
30
- 7 -
adjustment of exchange rates. Member countries would not allow
their exchange rates to fluctuate outside a narrow range based
on the agreed gold parity.
Voting power in the Fund would be closely related to
quotas. A member country could withdraw from the Fund
immediately and by giving notice in writing, Thereafter, the
reciprosal obligations of the Fund country would be
liquidated within a reasonable time.
During the period of transition following the war, member
countries would be permitted to retain their exchange controls
with the expectation that these would be gradually relaxed.
I am frank to say that in my opinion the agreement of
constitute a long slep in
the technical experts to these principles A is the way triund to prevent
a breakdown of currencies and the imposition and retention of
restrictive and discriminatory exchange measures after the
Through
now we
warD by providing now for international postwar cooperation assure
a stable and orderly pattern of exchange rates. The purposes
set forth in this Joint Statement have long been the international
monetary policies of the Unite States. For years it has been our
objective to have these policies adopted by other countries.
We know of no better way of assuring general adherence to these
Regraded Unclassified
91
- 8 -
international monetary. policies than through international
cooperation in an International Monetary Fund.
We believe that it is of the greatest importance that
all of the United Nations are in agreement on the best means to
deal with these international financial problems after the war.
This is concrete evidence that the United Nations can and will
work together in establishing a peaceful and prosperous world
just as they are now fighting together to destroy tyranny and
oppression.
International cooperation on monetary and financial matters
is the keystone of successful cooperation on all intemational
world trade
economic problems. Unless we agree to expand and develop the
world economy, few other agreements which we might
Regraded Unclassified
92
- 9 -
make will or can be effective.
The tentative proposals that have been under discussion
by the technical experts are part of a program for cooperation
on international economic problems among the United Nations.
The objectives of this program are the expansion and de velopment
of international trade, the restoration of international invest-
ment for productive purposes, the maintenance of stable and
we can
orderly exchanges and through these means
contribute
to
a high level of employment and production. The establishment
of an International Monetary Fund and a Bank for Reconstruction
and Development are important steps in the attainment of the
objectives of this broad program.
I want to emphasize again that the discussions up to now
have all been of a technical nature and exploratory in
character. Whatever has been done represents the views of
the technical experts of this country and of other countries
that have been studying these questions. The United States
15
will not in any way committed until Congress has taken
action.
It is my hope that after studying the recommendations of
the technical experts, the governments of the United Nations
will come to the conclusion that there is sufficient basis of
Regraded Unclassified
93
- 10 -
agreement at a technical level to warrant the convening of a
formal conference.
I am happy to say that the President has authorized me to
state that if a conference is held, it is his intention to
invite direct congressional participation in the work of the
United States Delegation.
Regraded Unclassified
94
Gentlemen:
I am happy to tell you today that technical
experts of the United Nations have agreed upon a set
of basic principles for an International Monetary
Stabilization Fund. This 18 a great step forward.
It is of greatest importance to all of us who believe
that the nations of the world can cooperate in dealing
with international economic problems.
Technicians representing some of these thirty
nations have prepared a joint statement of the
principles which are agreed upon. This statement
does not, of course, bind any government to participate
in the Stabilization Fund, though it does mean that
the Fund will be recommended to each of the governments
as a practical means of meeting post-war monetary
problems.
Regraded Unclassified
95
- 2 -
I want to call particular attention to some of the
facts contained in this joint statement, but before I do
that, I should like to review with you some of the
things that have happened since I appeared before these
Committees on October 5 of last year. At that time, I
told you I would like to keep you informed of progress,
and accordingly I appreciate this opportunity to bring
you up to date.
Since I last talked to you, we have discussed the
principles of the International Stabilization program
with bankers, labor representatives and other interested
groups in Washington, Chicago, Boston, Philadelphia,
New York, and other cities.
Regraded Unclassified
96
- 3 -
Out of these meetings came helpful suggestions, many of
which were incorporated in our plans.
The vast majority of those with whom we have talked
are inclined to look favorably upon the principle of
co-operation to maintain stable and orderly exchange
rates. Informed opinion seems to point to private
investment on a world-wide basis as vital to post-war
recovery and reconstruction; and the stabilization
of currencies among the United Nations through the
medium of an international fund, is generally believed
to be a necessary prerequisite to this investment.
Regraded Unclassified
97
- 4 -
I believe we cannot expect American business men, nor
business men of any nation, to take major financial
risks, immediately upon the heels of a catastrophic
global war, without some assurance that steps have
been taken to prevent their investments from being
jeopardized by unduly fluctuating money values and
severe exchange restrictions.
Having studied the world picture after the last
war, we are all agreed that an effort must be made
to prevent, insofar as possible, harmful fluctuations
of currency; and to prohibit deliberate manipulation
of currencies in an effort to secure unfair competitive
advantage in world trade.
Regraded Unclassified
98
- 5 -
When I was here on October 5, I spoke of a projected
International Bank for Reconstruction and Development.
Because discussions on the Bank were initiated
somewhat later they are not yet completely finished.
I can tell you, however, that there 1s considerable
support for the general principles embodied in the
World Bank, and that good progress has been made.
Those with whom we have discussed the problem
of reviving post-war international investment regard
the Bank as essential to the expansion of international
trade and the maintenance of a high level of business
activity.
Regraded Unclassified
99
- 6 -
They believe it necessary to take steps to encourage
and aid private investors in providing an adequate
volume of long-term investment capital for productive
purposes.
The discussions we have had contemplate the
establishment of a Bank for Reconstruction and
Development to facilitate long-term investment capital
through private financial agencies by guaranteeing and
participating in loans made by private investors. The
Bank would also supplement investment of private financial
agencies, if this becomes necessary, by lending for
productive purposes from its own resources when private
capital 18 otherwise not available on reasonable terms.
Regraded Unclassified
100
- 7 -
A full statement of recommendations on the
establishment of such a Bank, and of the principles
on which such a Bank should be based, 1s still in
preparation by technicians. It is my hope that this
statement of principles will soon be completed and
that it will be issued later. Before it is published,
I shall fully inform your Committees.
Now I should like to explain briefly some of the
basic principles upon which the technicians are agreed in
connection with the International Monetary Fund.
Regraded Unclassified
101
- 8 -
Here are the purposes and policies as set forth in
the joint statement:
(1) To promote international monetary cooperation
through a permanent institution which provides
the machinery for consultation on international
monetary problems.
(2) To facilitate the expansion and balanced growth
of international trade and to contribute in
this way to the maintenance of a high
level of employment and real income, which
must be a primary objective of economic
policy.
Regraded Unclassified
102
- 9 -
(3) To give confidence to member countries by
making the Fund's resources available to
them under adequate safeguards, thus giving
members time to correct maladjustments in
their balance of payments without resorting
to measures destructive of national or
international prosperity.
(4) To promote exchange stability, to maintain
orderly exchange arrangements among member
countries, and to avoid competitive exchange
depreciation.
Regraded Unclassified
103
- 10 -
(5) To assist in the establishment among member
countries of multilateral payments facilities
on current transactions, and to aid in the
elimination of foreign exchange restrictions
which hamper the growth of world trade.
(6) To shorten the periods and lessen the degree
of disequilibrium in the international
balance of payments of member countries.
Regraded Unclassified
104
- 11 -
The joint statement recommends that all of the
United and Associated Nations subscribe approximately
$8 billion to the Fund in the form of gold and local
currency. The resources of the Fund would be
available under adequate safeguards to help member
countries to maintain exchange stability and to
correct maladjustments in their balance of payments.
Member countries would be able to buy foreign exchange
from the Fund with their own currencies, to the extent
of their quotas, in order to meet international
payments consistent with the purposes of the Fund.
Regraded Unclassified
105
- 12 -
The par value of currencies of member countries
would be expressed in gold and could be changed only
at the request of member countries after consultation
and approval of the Fund. The Fund would approve a
requested change in parity only if it were essential
to correct fundamental disequilibrium. Prompt
consideration would be given to requests for nacessary
adjustment of exchange rates. Member countries would
not allow their exchange rates to fluctuate outside a
narrow range based on the agreed gold parity.
Regraded Unclassified
106
- 13 -
Voting power in the Fund would be closely related
to quotas. A member country could withdraw from the
Fund immediately by giving notice in writing, and
obligations would be liquidated within a reasonable
time.
During the period of transition following the war,
member countries would be permitted to retain their
exchange controls with the expectation that these
would gradually be relaxed.
Regraded Unclassified
107
- 14 -
I am frank to say that in my opinion the agreement
of the technical experts to these principles constitutes
a long step on the way toward preventing a breakdown
of currencies and the imposition and retention of
restrictive and discriminatory exchange measures after
the war. Through international cooperation now we
can assure a stable and orderly pattern of post-war
exchange rates.
The purposes set forth in this Joint Statement
have long been the international monetary policies of
the United States. For years it has been our objective
to have these policies adopted by other countries.
Regraded Unclassified
108
- 15 -
We know of no better way of assuring general adherence
to these policies than through international cooperation
in an International Monetary Fund.
We believe that it is of the greatest importance
that all of the United Nations are in agreement on the
best means to deal with these international financial
problems after the war. This is concrete evidence
that the United Nations can and will work together in
establishing a peaceful and prosperous world just as
they are now fighting together to destroy tyranny and
oppression.
International cooperation on monetary and financial
matters is the keystone of successful cooperation on
all international economic problems.
Regraded Unclassified
109
- 16 -
Unless we agree to expand world trade and develop the
world economy, few other agreements which we might
make will or can be effective.
The tentative proposals that have been under
discussion by the technical experts are part of a
program for cooperation on international economic problems
among the United Nations. The objectives of this program
are the expansion and development of international
trade, the restoration of international investment for
productive purposes, the maintenance of stable and
orderly exchanges. Through these means, we can
contribute to a high level of employment and production.
Regraded Unclassified
110
- 17 -
The establishment of an International Monetary Fund and
a Bank for Reconstruction and Development are important
steps in the attainment of the objectives of this
broad program.
I want to emphasize again that the discussions up
to now have all been of a technical nature and
exploratory in character. Whatever has been done
represents the views of the technical experts of
this country and of other countries that have been
studying these questions. The United States is not in
any way committed until Congress has taken action.
Regraded Unclassified
111
- 18 -
It is my hope that after studying the recommendations
of the technical experts, the governments of the United
Nations will come to the conclusion that there is
sufficient basis of agreement at a technical level to
warrant the convening of a formal conference.
I am happy to say that the President has authorized
me to state that if a conference is held, it is nis
intention to invite direct Congressional participation
in the work of the United States Delegation.
Regraded Unclassified
112
Gentlemen:
19/30/77
I am happy to tell you today that technical
experts of the United Nations have agreed upon a set
of basic principles for an International Monetary
Stabilis
tion Fund. This is a great step forward.
It 18 of greatest importance to all of us who believe
that the nations of the world can cooperate in dealing
with international economic problems.
Technicians representing some of these thirty
nations have prepared a joint statement of the
principles which are agreed upon. This statement
does not, of course, bind any government to participate
International monetary
in the St billeation Fund, though it does mean that
the Fund will be recommended to each of the governments
as a practical means of meeting post-war monetary
problems.
Regraded Unclassified
113
- 2 -
I want to call particular attention to some of the
facts contained in this joint statement, but before I do
that, I should like to review with you some of the
things that have happened since I appeared before these
Committees on October 5 of last year. At that time, I
told you I would like-to keep you informed of progress,
and
accordingly I appreciate this opportunity to bring
you up to date.
Since I last talked to you, we have discussed the
principles of the International Stabilization program
with bankers, labor representatives and other interested
groups in Washington, Chicago, Boston, Philadelphia,
New York, and other cities.
Regraded Unclassified
114
- 3 -
Out of these meetings came helpful suggestions, many of
which were incorporated in our plans.
The vast majority of those with whom we have talked
are inclined to look favorably upon the principle of
co-operation to maintain stable and orderly exchange
rates. Informed opinion seems to point to private
investment on a world-wide basis as vital to post-war
recovery and reconstruction; and the stabilization
of currencies among the United Nations through the
medium of an International fund, 18 generally believed
to be a necessary prerequisite to this investment.
Regraded Unclassified
115
- 4 -
I believe we cannot expect American business men, nor
business men of any nation, to take major financial
risks, immediately upon the heels of a catastrophic
global war, without some assurance that steps have
been taken to prevent their investments from being
jeopardized by unduly fluctuating money values and
severe exchange restrictions.
Having studied the world picture after the last
war, we are all agreed that an effort must be made
to prevent, insofar as possible, harmful fluctuations
of currency; and to prohibit deliberate manipulation
of currencies in an effort to secure unfair competitive
advantage in world trade.
Regraded Unclassified
116
- 5 -
When I was here on October 5, I spoke of a projected
International Bank for Reconstruction and Development.
Because discussions on the Bank were initiated
somewhat later they are not yet completely finished.
I can tell you, however, that there is considerable
support for the general principles embodied in the
World Bank, and that good progress has been made.
Those with whom we have discussed the problem
of reviving post-war international investment regard
the Bank as essential to the expansion of international
trade and the maintenance of a high level of business
activity.
Regraded Unclassified
117
- 6 -
They believe it necessary to take steps to encourage
and aid private investors in providing an adequate
volume of long-term investment capital for productive
purposes.
The discussions we have had contemplate the
establishment of a Bank for Reconstruction and
Development to facilitate long-term investment capital
through private financial agencies by guaranteeing and
participating in loans made by private investors. The
Bank would also supplement investment of private financial
agencies, if this becomes necessary, by lending for
productive purposes from its own resources when private
capital 18 otherwise not available on reasonable terms.
Regraded Unclassified
118
- 7 -
A full statement of recommendations on the
establishment of such a Bank, and of the principles
on which such a Bank should be based, is still in
preparation by technicians. It is my hope that this
statement of principles will soon be completed and
that it will be issued later. Before it is published,
I shall fully inform your Committees.
Now I should like to explain briefly some of the
basic principles upon which the technicians are agreed in
connection with the International Monetary Fund.
Regraded Unclassified
119
- 8 -
Here are the purposes and policies as set forth in
the joint statement:
(1) To promote international monetary cooperation
through a permanent institution which provides
the machinery for consultation on international
monetary problems.
(2) To facilitate the expansion and balanced growth
of international trade and to contribute in
this way to the maintenance of a high
level of employment and real income, which
must be a primary objective of economic
policy.
120
- 9 -
(3) To give confidence to member countries by
making the Fund's resources available to
them under adequate safeguards, thus giving
members time to correct maladjustments in
their balance of payments without resorting
to measures destructive of national or
international prosperity.
(4) To promote exchange stability, to maintain
orderly exchange arrangements among member
countries, and to avoid competitive exchange
depreciation.
Regraded Unclassified
121
- 10 -
(5) To assist in the establishment among member
countries of multilateral payments facilities
on current transactions, and to aid in the
elimination of foreign exchange restrictions
which hamper the growth of world trade.
(6) To shorten the periods and lessen the degree
of disequilibrium in the international
balance of payments of member countries.
Regraded Unclassified
122
- 11 -
The Joint Statement recommends that all of the
United and Associated Nations subscribe approximately
$8 billion to the Fund in the form of gold and local
currency. The resources of the Fund would be
available under adequate safeguards to help member
countries to maintain exchange stability and to
correct maladjustments in their balance of payments.
Member countries would be able to buy foreign exchange
from the Fund with their own currencies, to the extent
of their quotas, in order to meet international
payments consistent with the purposes of the Fund.
Regraded Unclassified
123
- 12 -
The par value of currencies of member countries
would be expressed in gold and could be changed only
at the request of member countries after consultation
and approval of the Fund. The Fund would approve a
requested change in parity only if it were essential
to correct fundamental disequilibrium. Prompt
consideration would be given to requests for necessary
adjustment of exchange rates. Member countries would
not allow their exchange rates to fluctuate outside a
narrow range based on the agreed gold parity.
Regraded Unclassified
124
- 13 -
Voting power in the Fund would be closely related
to quotas. A member country could withdraw from the
Fund immediately by giving notice in writing, and
obligations would be liquidated within a reasonable
time.
During the period of transition following the war,
member countries would be permitted to retain their
exchange controls with the expectation that these
would gradually be relaxed.
Regraded Unclassified
125
- 14 -
I am frank to say that in my opinion the agreement
of the technical experts to these principles constitutes
a long step on the way toward preventing a breakdown
of currencies and the imposition and retention of
restrictive and discriminatory exchange measures after
the war. Through international cooperation now we
can assure a stable and orderly pattern of post-war
exchange rates.
The purposes set forth in this Joint Statement
have long been the international monetary policies of
the United States. For years it has been our objective
to have these policies adopted by other countries.
126
- 15 -
We know of no better way of assuring general adherence
to these policies than through international cooperation
in an International Monetary Fund.
We believe that it is of the greatest importance
that all of the United Nations are in agreement on the
best means to deal with these international financial
problems after the war. This is concrete evidence
that the United Nations can and will work together in
establishing a peaceful and prosperous world just as
they are now fighting together to destroy tyranny and
oppression.
International cooperation on monetary and financial
matters is the keystone of successful cooperation on
all international economic problems.
Regraded Unclassified
127
- 16 -
Unless we agree to expand world trade and develop the
economic
world economy, few other agreements which we might
make will or can be effective.
The tentative proposals that have been under
discussion by the technical experts are part of a
program for cooperation on international economic problems
among the United Nations. The objectives of this program
are the expansion and development of international
trade, the restoration of international investment for
productive purposes, the maintenance of stable and
orderly exchanges. Through these means, we can
contribute to a high level of employment and production.
Regraded Unclassified
128
- 17 -
The establishment of an International Monetary Fund and
a Bank for Reconstruction and Development are important
steps in the attainment of the objectives of this
broad program.
I want to emphasize again that the discussions up
to now have all been of a technical nature and
exploratory in character. Whatever has been done
represents the views of the technical experts of
this country and of other countries that have been
studying these questions. The United States is not in
any way committed until Congress has taken action.
Regraded Unclassified
129
- 18 -
It is my hope that after studying the recommendations
of the technical experts, the governments of the United
Nations will come to the conclusion that there is
sufficient basis of agreement at a technical level to
warrant the convening of a formal conference.
I am happy to say that the President has authorized
me to state that if a conference is held, it is his
intention to invite direct Congressional participation
in the work of the United States Delegation.
Regraded Inclassified
130
April 20, 1944
Harry White.
Secretary Morgenthau.
Please write a letter for me to sign to
Ambassador Winant thanking him for the assistance
he has given us this last week with the English on
this monetary matter. I call him Gil 80 address
it, "Dear G11".
Letter in -4/21/44-
Pogradod
131
TREASURY DEPARTMENT
4th
INTER OFFICE COMMUNICATION
DATE April 20, 1944
TO
Secretary Morgenthau
FROM
Charles Bell pull
Of approximately 11,000 males between 18 and 37 inclusive, employed
in the Treasury Department, there were as of March 15, 1944, 340 deferred
from military service on occupational grounds. Of this number 118
deferments were made at the request of the Department. of the 118 cases
deferred at the Department's request one falls in the 18 to 25 age group;
six in the 26 to 29 age group; and 111 in the 30 to 37 age group.
The remaining 222 were deferred by local draft boards without the
request of the Department. It is likely that in many of these cases the
draftee sought occupational deferment direct. In this group five fall
in the 18 to 25 age group; 29 in the 26 to 29 age group; and 188 in the
30 to 37 age group. As you know draft boards are being notified that the
Department does not request deferment on occupational grounds in these
cases; however, before such letters go to the draft boards our bureaus
have an opportunity to review each case and make a decision then as to
whether or not it is desired to recommend deferment.
Regraded Unclassified
132
Mr. Charles Bell,
April 20, 1944.
Mrs. Doyle.
Secretary Morgenthau.
What would you think of offering prizes to the
employee of the Treasury who makes the best suggestion
along the following lines: namely, that by increasing
the comfort of the employee and lessening the strain,
we can at the same time increase the efficiency of
any particular group? Think that over and I would be
glad to give small monetary prizes out of my own-pocket.
After you have thought it over, the two of you might
come to see me. I got this idea from reading Mrs.
Doyle's memorandum.
1C
9
a
5/15 3^
5/20 report reportes Pall to be
will pay
When who
Regraded Unclassified
133
April 20, 1944.
Dear Harry:
As you undoubtedly know, the Fifth War Loan will
open June 12 and extend through July 8. Our over-all
goal of $16 billion is larger than that for any previous
drive, and we must also sell a greater portion than
ever before, $6 billion, to individuals.
The close cooperation of the War Department in
former loan drives has been of great value. During
the Fourth War Loan, our six million volunteers, who
sold more than 69 million separate War Bonds to indi-
viduals, were assisted immeasurably by Army shows,
bands, speakers and exhibits of equipment.
I should appreciate it very much if you would be
willing to issue an order or directive, similar to
that issued for the Fourth War Loan drive, on coopera-
tion between the War Department and the War Finance
Program. The assignment to the War Bond Program of a
liaison officer in each of the nine Service Commands
was most helpful, so I hope that this arrangement can
be continued in the forthcoming drive. As before, we
will undertake to channel to the Commanding General of
each Service Command all requests from State or local
War Finance Committees for Army cooperation.
Sincerely,
(Signed) Henry Morgenthan, Jr.
The Honorable Henry Stimson,
Secretary of War,
Washington, D. C.
Regraded Unclassified
134
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
April 20, 1944
TO Secretary Morgenthau
FROM Fred Smith
Wright Patman respectfully requests that if possible we
make the Texarkana speech on Monday night instead of Sunday
night. He says Texarkana is in the middle of the Bible belt
and he is afraid there will be various reactions from the
preachers if we competed with the churches for attention.
Gamble says he has no serious objections to switching
it. My own feeling is that if the people down there are so
faithful to the church they wouldn't even hear a broadcast
on Sunday night and maybe for that reason, the switch is a
good idea anyway. That would put the opening speech on
Monday, June 12.
Regraded Unclassified
135
April 20, 1944
Mr. Blough
Secretary Morgenthau
In reply to your memorandum dated April 20th
on taxation, Point Two, if there is any business in
the United States which can stand & 80% tax, it
is the cabarets. I, therefore, would like the
Treasury position to be that we are in favor of
keeping the rate at its present level.
Regraded Unclassified
Treasury Department
136
Division of Tax Research
O
Date April 20,1944
To: Miss Chauncey
From: Mr. Blough
Please have brought to
the Secretary's attention
that his consideration of
Point 2 is desired.
RB
a - 2
i2 L 2 be Y is / -
is 30% Le to Cal
V , F. 2 d \ C
Regraded Unclassified
137V
April 20, 1944
MEMORANDUM FOR THE SECRETARY
Subject: Taxation
Your consideration of Point 2 1s
requested. No immediate action required.
1. The Committee on Waye and Means met at 10:00 A.M.,
Wednesday, April 19th. After discussion of possible
alternative rate schedules the Committee voted on motion
of Mr. Cooper to accept the previously adopted surtax rate
schedule appearing in the Bill. Reading of the Bill was
then resumed but not completed. No further controversial
issues arose. The Committee is meeting again Thursday,
April 20 at 10:00 A. M.
2. Congressman Knutson is planning to introduce a
resolution to lower the tax on cabarets from 30 percent to
10 percent. Prior to the Revenue Act of 1943 the cabaret
tax was 5 percent of the total charge including food.
That Act increased the rate to 30 percent, whereas other
luxury items were increased from 10 percent to 20 percent.
Under the impact of the heavy tax some cabarets are going
out of business, while others are changing the methods of
operation to escape or minimize the tax.
The Treasury will undoubtedly be asked for its atti-
tude toward the proposed reduction. Mr. Surrey and I are
discussing the matter with Mr. Bell, Mr. Gaston, and
Mr. Sullivan. It may have political implications out of
proportion to the revenue involved.
3. In accordance with my earlier memorandum, the
interdepartmental group discussing tax incentives in the
postwar period is meeting this afternoon from 2 to 4 P. M.
in Room 220.
RoyBlough
138
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE April 20, 1944
TO
Secretary Morgenthau
FROM
Mr. Haas AR
This memorandum was prepared by Henry Murphy
in response to your request for a short version of
& previous memorandum on the same subject.
We have reviewed with you orally in conferences
in your office all the materials contained in the
memorandum.
139
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE
APR 20 1944
TO
Secretary Morgenthau
FROM
Mr. Hass
Subject The Federal Reserve Ratio
Under existing statutes, the ability of the Federal
Reserve System to support the market for United States
securities and the credit structure generally 1s determined
primarily by the Federal Reserve ratio -- 1.e., the ratio
of gold and "lawful money" combined held by the Federal
Reserve Banks to their combined note and deposit liabilities.
This ratio has a legal minimum of about 37 or 38 percent,
the exact figure depending upon a variety of circumstances.
If the ratio should fall below this legal minimum, addi-
tional credit could be extended by the Federal Reserve Banks
only pursuant to an emergency suspension of requirements by
the Board of Governors. Such a suspension would be subject
to a penalty tax and would have to be renewed by the Board
at fifteen-day intervals -- conditions which might make it
difficult or impossible to maintain an orderly market in
United States securities.
The fluctuation of the Federal Reserve ratio yearly since
the establishment of the System and monthly since the beginning
of 1940 18 shown on the accompanying chart. The ratio has
declined from 91 percent at the end of 1942 to 63 percent at
the end of February of this year. This decline will probably
continue at about the present rate for the duration of the war
and for some time thereafter, unless some definite monetary
move is made to check it. As indicated on the chart, we esti-
mate that it will have fallen to about 48 percent by the end
of this year.
It 1s clear that the ratio will not reach or closely
Federal Reserve System need not stint in its support of the
approach the legal minimum this year. Until it does, the
Government security market. It is likely, however, that as
the ratio approaches, and perhaps falls below, 50 percent
during the year, it will excite increased comment and some
ability of the Treasury and the Federal Reserve System to
skepticism on the part of the market with respect to the
maintain their present support of the Government security
market. Any such skepticism should be met with an expres-
sion of confidence in the continuance of this ability.
Regraded Unclassified
Secretary Morgenthau - 2
There are & number of measures which might be taken under
existing law to increase the Federal Reserve ratio. The most
important of these measures would be the issuance of Federal
Reserve Bank notes in lieu of Federal Reserve notes. Federal
Reserve Bank notes require no reserve; and if their issuance
should be substituted generally for that of Federal Reserve
notes, the problem of the Federal Reserve ratio would be
solved for the duration of even a long war.
The issuance of Federal Reserve Bank notes is authorized
by law without limit as to amount. None have been issued
since 1933, however, except for about $660 millions issued
during the past year. The issuance of these notes -- and more
particularly the somewhat unorthodox manner in which they were
issued -- precipitated a storm of protest, and a bill to pre-
vent their further issuance passed the Senate last May and 18
now pending (inactive) in the House Banking and Currency Com-
mittee. Under these circumstances, it would probably be
inadvisable to issue additional Federal Reserve Bank notes
this year. The issuance of these notes might be well received
next year, however, 1f the need for it 18 carefully explained
and the manner of issuance 18 altered to meet the criticism
directed at last year's operation. If this should prove to
be the case, no other action would need to be taken for the
duration in order to maintain the Federal Reserve ratio.
Aside from the issuance of Federal Reserve Bank notes, the
principal steps which could be taken under existing statutes
to check the decline of the Federal Reserve ratio are the fol-
lowing:
(1) Reduce member bank reserve requirements
(2) Monetize additional silver
(3) Use gold in Stabilization Fund
None of the above measures would do more than check the decline
in the ratio for a few months, however. The most potent of
them, & reduction of member bank reserve requirements to the
statutory minima, would only offset the decline in the ratio
for about seven months.
Finally, in addition to remedies available under present
statutes, there remains the possibility of seeking an altera-
tion of existing law. Such legislation might be obtained next
spring, by which time the necessity for action will probably
be clearer to Congress.
Attachment
Regraded Unclassified
140
RATIO OF RESERVE HELD TO COMBINED DEPOSIT
AND NOTE LIABILITIES OF FEDERAL RESERVE BANKS
PERCENT
PERCENT
PERCENT
End of Year
End of Month
110
110
110
100
100
100
90
90
90
80
80
80
70
70
70
60
60
60
50
50
50
48.2 Est
48.2 Est
40
40
40
30
30
30
20
20
20
10
10
10
o
0
O
1914
19
24
29
34
39
44
1940
1941
1942
1943
1944
Office of the Secretary of the Treasury
F-329
Division of Research and Statistics
Regraded Unclassified
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
DATE April 20, 194
Secretary Morgenthau
H. D. White
Increase in the Earnings of Banks and All Active
American Corporations Since 1932.
net earnings after taxes of all national banks and
ber banks, recovering from the $255 million deficit
climbed gradually to an annual level of nearly $350
in the prewar years 1939 to 1940, but shot up rapidly
to $563 million, 8.8 shown in the following table:
Net Earnings of All National Bank and State
Member Banks
(in millions of dollars)
Calendar Year
Before Taxes
After Taxes
1932
-$188 (deficit)
$255 (deficit)
1937
423
$337
1938
347
265
1939
432
347
1940
449
349
1941
519
390
1942
532
383
1943
758
563
The earnings after taxes of all active American corpora-
rose from a deficit of $5,462 million in 1932 to profits
655 million in 1940. The rise in their profits was very
after 1940 and rose to more than $8,500 million in 1943,
hown in the following table:
Net Earnings of All American Corporations
(in millions of dollars)
Calendar Year
Before Taxes
After Taxes
1932
-$5,187 (deficit)
-$5,462(deficit)
1937
5,148
3,872
1938
2,340
1,480
1939
5,272
4,040
1940
7,204
4,655
1941
14,107
6,941
1942
19,850
8,100
1943
22,000
8,550
Regraded Unclassified
142
VICTORY
TREASURY department
BUY
VRITED
STATES
WAR
PROCUREMENT DIVISION
BONDS
STAMPS
WASHINGTON 25
ICE OF THE DIRECTOR
April 20, 1944
MEMORANDUM TO THE SECRETARY:
Representatives of the Treasury Procurement Division,
the Surplus War Property Administration, and the Federal
Works Agency met with representatives of the manufacturers
and distributors of construction equipment for the purpose
of exchanging ideas with regard to the disposal of such
equipment when it becomes surplus as a result either of no
further need on the part of the armed forces, or of con-
tract terminations.
A conference was held with Mr. Charles Bell to dis-
cuss the type of personnel and proposed classifications
for the field organizations to handle the recording and
accountability control of surplus property by means of the
I.B.M. system. The personnel program was approved. Steps
are being taken to complete promptly the manual which will
provide guidance in this work and to recruit the necessary
personnel.
A conference has been arranged with representatives
of OPA, RFC, and the Procurement Division for Saturday after-
noon to establish the price ceiling for sales of passenger
vehicles to dealers. A report will be submitted to you as
to the outcome.
Offers received for the motorcycles are now being
analyzed and will be reported in 8. day or two.
GAMEN Clifton.E. Mack
Director of Procurement
Regraded Unclassified
143
Treasury Department
Division of Monetary Research
Date April 20
1944
To:
Mrs. McHugh
I informed Secretary Morgenthau
that Mr. Friedman was leaving by plane
at eleven o'clock today and therefore
would not be able to go to New York to
talk with Governor Lehman unless the
Secretary wished Mr. Friedman to delay
his trip. Secretary Morgenthau sug-
gested that Mr. Friedman telephone
Governor Lehman, to find out what he
had in mind. Mr. Friedman telephoned
him this morning and spoke to him at
some length.
H.D.W.
MR. WHITE
Branch 2058 - Room 214-1/2
Regraded Unclassified
white
144
),072.90 C
UNITED NATIONS
1 8m
RELIEF AND REHABILITATION ADMINISTRATION
none
1344 CONNECTICUT AVENUE
WASHINGTON 25. D. C.
New York, N.Y.
April 17, 1944
Personal
Dear Henry,
I am just in receipt of your letter of April 13,
which was forwarded to me from Washington. I am still at Doctors
Hospital where I still continue to have treatment for my leg which
I think 1s slowly improving.
I am sorry that Harold Glasser is not available. I
am sure, however, that Mr. Friedman on his arrival in Cairo can
be of very substantial value in exploring the whole subject of
currency and price control which I think 1s one of the most
important matters with which the British and we will have to
deal in any Balkan undertaking. I would very much like to see
Mr. Friedman in Washington or here before he leaves for Cairo.
My plans with regard to returning to Washington are still
indefinite. I will, however, probably be here in New York for
the balance of this week and hope to get to Washington early
next week. On my return to Washington I think I shall go for
a few days either to Walter Reed or the Naval Hospital for
further treatment. When Mr. Friedman's plans with regard to
leaving for the Middle East are settled I would appreciate it
if he would telephone me and I can then arrange for a specific
time to see him either here or in Washington. Thanks ever 80
much for letting me know about Glasser and Mr. Friedman's plans.
It was grand seeing you and Ellie at the hospital a
few days ago. I hope to see you soon after my return to Washing-
ton.
With affectionate greetings to you and Ellie in which
Edith joins me, I am
Very sincerely yours,
Herber
Honorable Henry Morgenthau, Jr.
N3 876
Secretary of the Treasury,
Washington, D.C.
Regraded Unclassified
145
TREASURY DEPARTMENT an
INTER OFFICE COMMUNICATION
DATE
TO
Secretary Morgenthau
April 20, 1944
FROM
Joseph J. O'Connell, Jr.
For your information
(Argentine gold shipment)
As I understand it, the only practical way
of preventing the shipment of gold from Argentine
to Switzerland is through use of the British
navicert system.
At our request, the State Department has advised
the British that this Government does not favor the
proposed shipment, and has requested that the British
not issue a navicert for it without prior consultation
with us. Our information is that the British have
not yet replied.
The State Department and the British both know
our position in the matter, and presumably the latter
will not move to permit the shipment without talking
with us. In any event, it is 8. little too early
to approach State again, though we will do so within
the next week if we haven't heard from them in the
meantime.
Regraded Unclassified
146
April 20, 1944
Mr. 0'Connell
Secretary Morgenthau
I have read your memorandum about a shipment of
gold from the Argentine. It is not quite clear to me
from your memorandum whether this shipment has definitely
been held up by the State Department or not. I'd like a
clearer memorandum and I positively want to do everything
within our power to stop this shipment of gold from
Portugal Agentina? to Switzerland. Undoubtedly it's a German
account; at least, that is my strong suspicion.
Finished. See 1)commells memo memo/4/2014-
Regraded Unclassified
147
EXECUTIVE OFFICE OF THE PRESIDENT
WAR REFUGEE.BOARD
14
INTER-OFFICE COMMUNICATION
DATE
April 20,1944
TO
Secretary Morgenthau
FROM
J.W. Pehle
For your information:
Apparently the possibility of having Corcoran go
to Spain for the War Refugee Board is still not dead.
I talked to Corcoran yesterday and he said that he had
an appointment to discuss the matter with the President
just before the President went away, but the appoint-
ment was cancelled at the last minute. Corcoran said
he would see the President when he gets back and will
ask him whether he is to go to China or Spain.
McDonald is coming down to see me next week. I
have real doubts as to whether he could crack the
Spanish situation however.
John
148
April 20, 1944.
Regraded Unclassified
AMREP,
ALGIERS.
1202, Twentieth.
Agreement has been reached in principle between
American and British Governments to transfer to UNERA
full responsibility for operation and maintenance of
refugee camp at Fedhala near Casablance.
Detailed arrangements as to transfer of responsibility
are now being worked out. It is proposed that the American
and British Governments should retain responsibility of
transporting refugees to North Africa and that UNRRA's
primary responsibility would be to maintain refugees
after their arrival in North Africa. Responsibility for
eventual resettlement of refugees not to be repatriated
will remain unchanged, although under terms of UNRRA
Agreement UNRRA will assist in repatriation of refugees
who are to return to their original countries. Effective
date of transfer will occur after appropriation by
United States Congress of funds for contribution to UNRRA,
which is expected before the middle of June.
UNRRA is instructing Beckelman to take up
with French authorities in Algiers with respect to proposed
transfer in order to obtain their consent as required.
by UNRRA Agreement to operations in French territory.
You are requested to join with Beckslman in discussions
with the French to the extent necessary, although, since
French Committee is genber of UNRRA, the initial approach
should be made by Beckelman on behalf of UMRRA. UNRRA
has informally notified French representatives how of
these plans. It is understood that the British Govern-
ment is issuing similar instructions to Algiers.
HULL
(DA)
LASEGN:MKG
4/18/44
VS
WRB
Accompanied by hectograph.
April 20, 1944.
149
CABLE TO CAIRO
From War Refugee Board to MacVeagh
Reference your no. 88 of April 13, 1944.
War Refugee Board is extremely interested
in project involving escape of Jews from occupied terri-
tory to Italy and Mediterranean region. Please advise
War Refugee Board of any further developments in this
situation, particularly result of mentioned approach
to Tito. Board is prepared to arrange for any assis-
tance, including funds.
April 20, 1944
3:00 p.m.
fh; jbj; jwp
Regraded Unclassified
150
TELEGRAM SENT
This telegram must be
April 20, 1944
paraphrased before being
communicated to anyone
midnight
other than a Governmental
agency. (BR)
RESTRICTED
AMEMBASSY,
LONDON.
3169
FOR THE AMBASSADOR.
Reference your no. 2696 of April 3, 1944 concerning relief
to refugees in Rome.
War Refugee Board has been advised by representative of
American Jewish Joint Distribution Committee in Portugal that
1,400,000 lire have already been borrowed in Rome against the
$20,000 credit established in London.
War Refugee Board is discussing with Apostolic Delegate
in Washington possibility of making future remittances for this
program direct from United States through Vatican channels.
American Jewish Joint Distribution Committee is prepared to make
further sums available for this relief work but will wait outcome
of aforementioned discussions.
HULL
(GLW)
HULL
WRB :GLW:KG
BC
SE
WT
S/CR
4/20/44
Regraded Unclassified
151
PARAPHRASE OF TELEGRAM RECEIVED
FROM: American Embassy, London
TO:
Secretary of State, Washington
DATED: April 20, 1944
NUMBER: 3233
SECRET
In accordance with the request contained in the Depart-
mont's 3005, April 18, we immediately sought cansent of the
British Government. The head of the Relief Section in NEW
was simultaneously appreach because of the urgency of the
matter. Even though the reply of the British Government is
not yet available, we find the opinion of the cited Section
Head (w. he Camps who in Greek relief matters is the most
influential British efficial) is agreeable to diverting of a
Swedish ship engaged in Greek relief, the choice to be left
to the Svedes though the BARDALAND seens likely and conditional
on Russian and German naval and air safe conducts; but to any
appreach mde to Germany before the departure from the Baltic
(schedule for April 25 or 26) of the last of the three addi-
tiomal and two replacing Svedish ships approved by the Germans
for the Greek relief fleet, Camps is emphatic that whatever
anticipatory arrangements be made he would object stremously.
Shall I guide my discussion with the Swedish Minister in
the same sense, if this proves to be the line taken by the
British when their reply is received? Valuable time my be
saved by your advance instructions.
Both the Foreign Office and the Ministry of War Transport
were appreach by us upon receipt of the Department's
cable of March 31, No. 2516. Instructions have gone forward
to Gibson Graham which are generally favorable, according to
an informal statement made yesterday by latter Ministry.
WINANT
Regraded Unclassified
152
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
The American Minister, Helsinki
TO:
The Secretary of State, Washington
DATE:
April 20, 1944
NUMBER:
341
SECRET
The following Message is for the War Refugee Board.
Along the lines of my message number 303 dated April 3
I have had some further informal discussion regarding refugee
questions and with reference to the intentions of the Board
in respect to Finland, I would appreciate some guidance. It
is my belief that the Government of Finland would issue a
declaration of its willingness to facilitate the movement of
refugees as envisaged in airgram from the Department dated
7:30 p.m., February 29, paragraph 6. The political implica-
tions involved will, however, be overlooked by the Department.
The Government of Finland may sooner or later link the welfare
of its three hundred thousand Karelians who in all probability
would leave the area to be ceded under current peace terms to
Russia by Finland, or the one hundred and fifty thousand who
are already in West Finland, with the general plan for the
amelioration of Refugees' conditions. With reference to as-
sistance for fifty thousand Ingrians from the USSR in German-
land, a question may also be raised. Up to the present time,
however, these points have not been made to ne.
As the Department knows, the Government of Finland on
the other hand, on a basás of international cooperation at
this time would be strongly attracted by any opportunity to
associate itself with western democraties and would in all
probability issue a declaration of the type in question for
this reason.
As my number 82 this is being repeated to Stockholm for
Olsen.
The Jewish Community has advised me and the report is
confirmed by the Swedish Legation, that the Government of
Sweden has decided to allow entry of the 106 refugees which
paragraph eight of my telegram in reference mentioned, into
Sweden. It is indicated by the Assistant Chief of the
Political Department of the Foreign Office that it might be
opportune to make a statement in connection with the travel
of these refugees, if a statement were forthcoming. It was
asked by him whether any governments other than ours have
made declarations up to the present ime and he would like to
know their contents if such declarations have been made.
GULLION
DCR:MPL
4/21/44
Regraded Unclassified
153
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
The Allied Control Commission, Naples
TO:
The Secretary of State, Washington
DATE:
April 20,1944
NUMBER:
3590
SECRET
Murphy sends the following message.
At the suggestion of the Combined Chiefs of Staff a study
of the civilian relief problem in Italy has recently been made
and completed by Patrick Malin, Vice President of the Inter-
governmental Committee on Refugees. With regard to non-Italian
persons in Italy especially Jews, Malin although he found ar-
rangements satisfactory for the relief of Italians, considered
that further steps should be taken with a view to ensuring the
dispensation of adequate relief and to arranging their evacua-
tion or repatriation where possible.
The following recommendations which ACC and AFHQ have
approved are put forward by Malin to supplement the foregoing:
One. Sir Clifford Heathcote Smith, late British Consul
General at Alexandria, to be appointed as resident representa-
tive in Italy of IGCON refugees.
Two. To work in Italy under Heathcote Smith on the issuance
of Palestine immigration certificates, the appointment of a
representative of & Jewish agency which the Government of
Palestine has approved.
Three. The authorities of France to be asked to accommo-
date some 750 Jewish refugees in a camp established at Fedhala
by UNRRA.
Four. The present policy of excluding organizations
other than British and American from Italy Allied Red Cross
to be maintained.
UNSIGNED
DCR:MPL
5/5/44
Regraded Unclassified
154
ORIGINAL TEXT OF SENT
FROM:
Secretary of State, Washington
TO:
American Consul, Jerusalen
DATED:
April 20, 1944
NUMBER:
86
CONFIDENTIAL
The War Refugee Beard requests that you deliver the
fellowing message to Chief Babbi Issac Hersegt
QUOTE. Your radiograms of April 4 and 7 have been
received.
The safety of Jewish and other holders of Lating
American passports in Vittel and other camps has been a
matter of deep concern to this Government. It has made
repeated efforts to save all these persons. To this end,
it has approached the governments of Spain, Switserland
and Latin American countries involved and is mintaining
constant communication with Interngovernmental Committee
and International Red Cress.
Special steps have been taken to save the lives of
238 persons deported from Vittel.
The Board hopes that, as a result of these efforts,
the danger threatening these persons will be averted,
Signed, John W. Pehle, Executive Director, Var Refugee
cleard. UNQUOTE.
HULL
Regraded Unclassified
155
CIRCULAR
CONFIDENTIAL
April 20, 1944
7:35 p.m.
FOR THE PERSONAL AND CONFIDENTIAL INFORMATION OF THE
AMBASSADORS AT SAN JOSE, SAN SALVADOR, GUATEMALA,
TEGUCIGALPA, MANAGUA, QUITO AND ASUNCION.
With further reference to the Department's circular airgram
of January 26, 7 p.m., and to subsequent communications on refugee
matters, you are informed that the Department has now authorized
the American consular officers in Switzerland to issue up to four
thousand quota immigration visas to refugee children up to sixteen
years of age without regard to religion, nationality or stateless
status, to close relatives residing in enemy, enemy-occupied or
controlled territory, or to the availability of means of transporta-
tion to the United States. The purpose of this authorisation is to
facilitate the escape to Switzerland of orphaned or abandoned
children by giving assurances to the Swise Government that these
children will not remain in Switzerland after the termination of
hostilities in Europe. The authorisation contains provisions for
the continued renewal of the visas until such time as adequate
transportation facilities to the United States become available.
Private sources have posted bond with the Attorney General of the
United States to assure this Government that the immigrating children
will not become public charges.
If there are private agencies in the country to which you are
accredited, willing and able to undertake a program for the care of
refugee children, the War Refugee Board is confident that it can
make arrangements to provide these agencies with adequate funds
for the maintenance, education and welfare of as many children as
the Government of that country would be willing to admit. Should
it prove necessary, funds would undoubtedly be available to meet
transportation expenses from Switzerland to that country.
Kindly approach appropriate officials of the Government to
which you are accredited, inform them of the foregoing and request
them to give assurances to the Swiss Government of their willingness
to accept up to & fixed number of refugee children in a manner
similar to this Government. For the information of the Government
to which you are accredited, it is conservatively estimated that
there are in France alone eight to ten thousand abandoned or orphaned
refugee children.
Should that Government be willing to make this humanitarian
offer, please request the Ministry of Foreign Affairs to authorise
its chief of mission in Bern to issue the appropriate number of
immigration visas and to maintain their validity until suitable
transportation facilities from Switzerland to its country become
available. The Government may be informed that the special repre-
sentative of the War Refugee Board attached to the American Legation
in Bern will be glad to cooperate with the diplomatic and consular
Regraded Unclassified
156
- 2 -
officers of the other American Republics in this as well as in
all other refugee matters.
Please report by telegraph whether this suggestion has been
favorably received by the Government to which you are accredited
and, if so, the number of children it is prepared to admit.
HULL
HULL
Sent to: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua,
Ecuador and Paraguay.
WRB:GLW:KG
ARA
WE
VD
Regraded Unclassified
157
A-77
SECRET
2:30 PM
Sent by Secret Courier
AMEMBASSY
April 20, 1944
TEGUCIGALPA (HONDURAS).
FOR THE PERSONAL AND CONFIDENTIAL ATTENTION OF THE AMBASSADOR.
Refer our previous communications regarding War Refugee Board.
Reference is made to Department's airgram March 31, 1:05 p.m.
Minister Harrison at Bern has informed us that the Swiss
Foreign Interests Division has advised him informally that the
Spanish government had been requested by the Germans to inquire
into the bona fides of certain Latin American passports, held by
internees in enemy-controlled territory and that the Latin American
governments have denied responsibility as well as any claims of the
persons holding such passports. Please approach appropriate offi-
cials of the government to which you are accredited and inquire
whether it has received any such inquiries through the government
of Spain or otherwise from the Germans with respect to the validity
of passports held by such internees and if such inquiry has been
made, please ascertain the nature of the response, if any.
In view of the perilous situation in which these internees
find themselves, the conclusion has been reached that perhaps the
only way of safeguarding the lives of these unfortunate victims of
Nasi persecution is forwith to initiate through proper channels
negotiations
Regraded Unclassified
158
Tegucigalpa A-77
- 2 -
negotiations for an exchange of nationals for which these people
will be eligible. In contemplating such exchange negotiations,
it is not expected that the government to which you are accredited
will physically admit any such persons into its territory even on
a temporary or tentative basis. This Government is prepared to
take full responsibility for all arrangements necessary to route
these persons to places elsewhere.
Proceeding on this basis, please approach the government to
which you are accredited with the request that it give its approval
to the Government of the United States approaching the German
government through appropriate channels with a view to initiating
such negotiations. Please also advise appropriate officials of
the government of Honduras that similar requests are being made of
other Latin American countries, it being the hope of this Government
that it will be put in a position to initiate exchange discussions
on & hemispheric basis. Please also advise such officials that in
any exchange negotiations that may be entered into, it is of course
understood that unquestioned citizens of the United States and of
the Latin American countries will be considered by this Government
as being in a category entitled to priority over others.
Please also request the government to which you are accredited
on humanitarian grounds, affirmatively to approach the German
government through the protecting power with a demand that the
lives of all persons holding passports issued in its name or claim-
ing its citizenship on the basis of consular documents be safe-
guarded /
Regraded Unclassified
159
Tegucigalpa A-77
- 3 -
guarded and that they be given all rights, privileges and immunities
accorded to civilian internees of enemy nationality to whom the
Geneva Convention regarding the treatment of prisoners of war is
currently applied by analogy.
In view of the imminent danger in which the persons concerned
find themselves, you are requested to act with the greatest possible
dispatch.
Finally, we communicate to you, for communication to the govern-
ment to which you are accredited, the substance of a cable which the
Department has sent to our Minister at Bern as follows: QUOTE
Although the motives of the Germans in according better treatment to
Jews of Polish origin holding passports and other documents issued
in the names of Latin American countries are not too clear, it would
appear that they include (1) some hope that they might be considered
exchange material against Germans in the Western Hemisphere and (2)
some fear that their ill-treatment might afford the Latin American
countries a pretext for further limiting the freedom and economic
activities of Germans resident in such countries.
The measure reported in your 1958 of March 30 may be an
indication that Germany is beginning to doubt whether such Jews
are considered exchange material and whether their treatment would
affect the treatment of Germans in Latin America. This Government
regards it as essential that these doubts be promptly and effectively
disspelled.
Regraded Unclassified
160
Tegucigalpa Am77
- 4 -
Accordingly, please request the good offices of the Swiss Govern-
ment in informing the Germans that this Government is undertaking
discussions with Latin American countries for & further exchange of
Germans in the Western Hemisphere for persons in German-controlled
territory and that in this connection, the United States considers
that all persons in Vittel and elsewhere holding passports and other
documents issued in the names of Latin American countries will be
eligible for such exchange.
Simultaneously, please request the appropriate Swiss authori-
ties to advise the Germans that in the meantime this Government
expects that these persons will be accorded the same rights, privileges
and immunities that the German government expects will be accorded
to Germans in the Western Hemisphere. You may add that a consider-
able number of German civilians interned by various Latin American
countries have been placed by such countries in the custody of the
United States and are presently in such custody within continental
United States.
For your information, the substance of this message is being
communicated to our Missions in the Latin American countries
concerned. We are also making inquiry of such Latin American
countries with respect to the authenticity of the information
informally conveyed to you by the Swiss Foreign Interests Division
which you referred to in your 1994 of March 31 UNQUOTE
SPECIAL INSTRUCTIONS TO THE AMBASSADOR.
You are instructed to memorize the contents of this airgram,
burn the document and discuss the matter orally with the government
Regraded Unclassified
161
Tegucigalpa Am77
- 5 -
to which you are accredited. Such report &8 you submit to the
Department on this cubject should be by secret courier.
HULL
WRB:GLW:KG
ARA
WE
SWP
4/19/44
Regraded Unclassified
162
TELEGRAM SENT
PLAIN
April 20, 1944
AMERICAN CONSULATE
CASABLANCA
61, twentieth
FOR BECKELMAN FROM
1. British and American Governments have agreed in principle
to transfer to UNRRA of responsibility for maintenance and
operation of refugee center at Casablanca.
2. Plans are to develop as soon 8.8 possible detailed agreement
as to conditions and date of transfer. UNRRA proposes that
British and American Governments should retain responsibility
for transport of refugees to North Africa, UNRRA's primary
responsibility being for care and maintenance of refugees after
arrival at North African seaport. Responsibility for finding
new places for their eventual settlement will remain unchanged
by transfer although UNRRA is prepared to assist in repatriation
of such persons as can and are willing to return to countries of
origin or of former residence. Expectation is that terms of
transfer will also include some understanding as to supply
arrangements as for example possible extension of present agree-
ment with military for furnishing of supplies. Proposed date
of transfer is some time after U. S. Congress appropriates
money for UNRRA probably in four to six weeks.
3. Take up with French authorities in Algiers the proposed
transfer in order to obtain their consent pursuant to Article I,
paragraph 2 (a) of the UNRRA agreement, clearing with them also
as to any discussions which you deem necessary with authorities
in Morocco. British and American representatives in Algiers are
being instructed to join with you in discussions with French
whenever necessary although since French Committee 1s member of
UNRRA initial approach should be made by you as UNRRA representa-
tive. We are informally notifying French representatives here
of the above plans.
4. Would appreciate your cabled recommendations as to terms to
be included in understanding referred to in paragraph 2. Also
cable results of your talks with French in line with paragraph 3.
HULL
Forwarded by
(GHK)
JGJohnson/fh
DCR:RLH:ATM
18 Apr 44
Regraded Unclassified
163
AIR MAIL
No. 415.
LEGATION OF THE
UNITED STATES OF AMERICA
Lisbon, April 20, 1944.
Subject: Transmission of Memorandum Prepared by
Dr. Robert C. Dexter, Unitarian Service
Committee, Lisbon, in Response to Treasury
License Issued to the Unitarian Service
Committee.
CONFIDENTIAL
The Honorable
The Secretary of State,
Washington.
Sir:
I have the honor to refer to the Department's
telegram of April 8, 1944, which states that the Treasury
Department has issued License No. W-2167 to the Unitarian
Service Committee of Boston, Massachusetts, and which
conveys the substance of the license, and to transmit
herewith a memorandum prepared by Dr. Robert 0. Dexter
in response to the telegram. Dr. Dexter, who has been
European Director of the Unitarian Service Committee,
will become Special Attache for Refugee Matters to the
American Legation, Lisbon, when the position is approved
by the Portuguese Foreign Office.
Respectfully yours,
For the Minister,
James B. Wood,
Financial Attache.
Enclosure:
Memorandum.
File No. 814.4/300
JEWilr
Regraded Unclassified
164
Enclosure to despatch No. 415
dated April 20, 1944 from
American Legation, Lisbon
MEMORANDUM
Lisbon, April 12, 1944.
To: James 2. Wood, Financial Attache,
American Legation, Lisbon.
From: Dr. Robert C. Dexter, European Director,
Unitarian Service Committee.
1) The Unitarian Service Committee appreciates ex-
ceedingly the information contained in the cable dated
April 8, 1944 from the Department of State and especially
the general attitude contained therein.
2) As far as remittances from Portugal to France
are concerned, at the present moment the permission is
purely academic as no funds have been remitted here speci-
fically under the terms of the license. It was Dr. Robert C.
Dexter's understanding when he left the United States that
the license granted to Portugal was only an alternative
one in case the funds for France could not be sent through
Switzerland. It was his further understanding that
$10,000 was to be sent to Switzerland shortly under &
similar license.
3) In view of the various complications presented by
the license, it is the policy of the Unitarian Service
Committee to consult the Financial Attache of the Legation,
and only to make putchase of francs with his approval. It
is assumed that such approval would be satisfactory to the
Legation here and to the State and Treasury Departments in
Washington.
4) In case facilities develop rapidly for sending
money into France for purposes mentioned in the license,
the Unitarian Service Committee would like advice as to
whether funda already in Lisbon, but not specifically allo-
cated for the purposes envisioned by the license, may be
used for remittances to enemy occupied territory. Such
remittances would be made only upon prior approval of the
Financial Attache. This question is asked only in order
to facilitate transmission in an emergency.
Regraded Unclassified
165
CORRECTION
April 20, 1944
BJR
In cable from Lisbon 1145 April 18, 11 a.m.
War Refugee Board page 2, line 4 insert "can arrange"
after "believe".
DIVISION OF COMMUNICATIONS AND RECORDS
CSB
Regraded Unclassified
166
AMT-558
PLAIN
Lisbon
Dated
April 20, 1944
Rec'd
3:50 p.m.
Secretary of State,
Washington.
1176, Twentieth, 11 a.m.
Following Message is from Joseph Schwartz for War
Refugee Board and Leavitt, Joint Distribution Committee,
New York.
"Barlas supplies following figures concerning
emigration services from Turkey to Palestine from
December 1943 to March 31, 1944. Local Turkish residents
1084 of whom 194 required assistance. From Bulgaria
276 including 46 children who arrived in March. From
Hungary 169, from Greece 176, from Rumania 285, which
includes 239 SS MILCA passengers who arrived March.
Financial statements not yet ready but will advise as
soon as pvailable. Thus far Turkish repatriates
arriving from France No. 340 of whom 175 receiving
assistance which over a period of 6 weeks amounted
14,000 Turkish pounds. Resnik advises passengers
boarding both steamships MILCA and MARITZA at Constanza
were required to pay fantastic sums."
NORWEB
RB
Regraded Unclassified
167
LEG-635
PLAIN
Lisbon
Dated
April 20, 1944
Rec'd 6:12 p.m.
Secretary of State,
Washington.
1183, April 20, 6 p.m.
Following telegram number 2 is for War Refugee
Board and Rabbi Stephen Wise, President Jewish Congress,
New York, from Isaac Weissman.
"We enthusiastically welcome nomination Dexter
representative Mar Refugee Board closest collaboration
already established. Considering nature general rescue
work Dexter and myself agreed upon closest confidential
cooperation between Jewish Congress and Board, am there-
fore giving him information concerning work extensively
developed by Congress here. Regular groups rescued
orphans now arriving. Fully appreciate promised American
visas but since delegate Jewish agency just arrived from
London with visas Palestine should take preference for
following reasons: First, according Jewish faith orphans
belong Jewish Community who in Palestine have created
special institutions adoption and vocational training
youth groups; secondly, Palestine community long
experienced reception such groups; thirdly, our experience
shows shildren dispersed foster parents risk being lost
Judaism. Please intervene immediately with Director
War Refugee Board urging him favor Palestine destination
all children having no relatives USA".
NORWEB
EJH
Regraded Unclassified
168
ORIGINAL THE or TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Born
DATED:
April 20. 1944
NUMBER:
1358
SECRET
FROM THE WAR REFUGER BOARD TO MINISTER HARRISON.
The War Refugee Board requests that you deliver the
following message to Dr. Gerhart Rigner, Genevat QUOTE
Please advise whether you can resume contacts with Willy,
his superiors and associates, and ethers exercising similar
authority. If this is possible, would appreciate your views
as to pessibility of arrenging for evacuations from Bungary
to neutral countries or for holding up deportations or per
mitting sending relief to those detained. If any sucherrange-
ments possible, please indicate amounts you consider would be
involved and extent to which such amounts could remain in
neutral countries. Also is Willy reliable. Signed Mahum
Goldmann, World Jewish Congress. UNQUOTE.
Regraded Unclassified
169
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Bern
TO:
Secretary of State, Washington
DATED:
April 20, 1944
NUMBER:
2508
CONFIDENTIAL
Legation's cable dated March 6, no. 1366, is referred
to herewith.
Regarding test shipments of food parcels to Allied
Nationals in German concentration camps, please see letter
of September 1, 1943, from James, Special Representative in
Geneva of American Red Cross to Mitchell, Director of
Insular and Foreign Operations of American Red Cross.
HARRISON
Regraded Unclassified
170
PARAPHRASE OF TELEGREM RECEIVED
FROM:
The American Minister, Bern
TO:
The Secretary of State, Washington
DATE:
April 20, 1944
NUMBER:
2510
SECRET
The fellowing mesage refere to your number 1269 dated
April 13, and to number 1270 also dated April 18, 1944.
The Government of Switzerland has been requested by the
Legation to extend protection to Hager and Wachtel whose cases
were mentioned in by number 1994 dated March al until specific>
ally advided to the contrary and similar action will be taken on
cases of this kind is the future. On April 14 we requested the
immediate return to Vittel of two hundred and thirty-eight persons.
It is assumed by the Legation that the authority given in
the telegram under reference to extend protection to documents-
tion applicants who are awaiting the decision of the Department
applies only to such refugee cases and does not alter the cus-
tomary procedure of withholding protection to ordinary cases
which are refersed to the Department for decision such as cases
of cooperation in the war effort of the enemy, doubtful leyalty.
repatriations first time application, et cetera. In later cases
the Legation will continue to request the Swise representative to
withhold protection watil the decisions of the Department are -
ceived, unless instructed otherwise.
HANRISON
DORAMPL
4/26/44
Regraded Unclassified
171
CABLE TO AMBASSADOR STEINHARDT, ANKARA, TURKEY FROM WAR REFUGEE BOARD
This is WRB cable to Ankara No. 28
As previously advised, you should effect in Turkey all Insurance
required by charter for SS TARI except war risk on vessel. As indicated
in our No. 306 of April 8 war risk on vessel will be placed here through
War Shipping Administration. Advise us immediately when TARI is ready to
depart in order that war risk insurance can be placed here. This matter
has been discussed with Hirschmann who is in complete accord.
April 20, 1944
3:00 p.m.
JBF:bbk - 4/19/44
Regraded Unclassified
172
TELEGRAM SENT
This telegram must be
April 20, 1944
paraphrased before being
communicated to anyone
midnight
other than a Governmental
agency. (BR)
RESTRICTED
AMEMBASSY
MOSCOW
978
FOR THE AMBASSADOR FROM WAR REFUGEE BOARD.
Please refer to Department's circular airgram of January 26
in regard to the establishment of the War Refugee Board, also to
War Refugee Board cables nos. 554, March 11, and subsequent tele-
gram on same subject.
The 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. Robert J. Scovell,
former representative of the American Red Cross in Russia and new
on the headquarters staff of that organization, as the Special
Representative of the Board with the designation by the Department
as Special Attache to the Embassy on war refugee matters. The
Presidential 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 responsi-
bilities shall be defined by the Board in consultation with the
State Department.
It 1s/
173
-2-1978, April 20, midnight, to Hoscow.
- 2 -
It is understood that Mr. Scovell is personally known to you.
It is assumed that there will be no objection on the part of the
Russian Government to this designation, although you may in your
discretion approach the Russian authorities informally,i you
consider it necessary or advisable to do 80. If Mr. Scovell's
appointment meets with your approval, please advise us accordingly
in order that his designation may be made effective at once.
If Scovell is appointed we propose to advise him through you
that:
(a) He is charged with the duty and responsibility of carry-
ing out the Board's policies and programs in Russia;
(b) He is responsible to the Ambassador and should discuss
his activities and problems with him regularly and fully;
(c) The Embassy will provide him with the necessary com-
munication facilities in carrying on his official duties;
(d) He should extend all possible assistance to the Ambassador
in carrying out instructions contained in the airgram and cable-
grams referred to above;
(
(e) He should work with and give all possible assistance to
public and private agencies operating in Russia in this field
regardless of whether such organizations are American, foreign
or international;
(f) He should develop and assist in the development of pro-
grans and implementation of measures for the rescue, transporta-
tion, maintenance and relief of refugees;
(g). He should 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/
Regraded Unclassified
174
-3-1978, April 20, midnight, to Moscow.
- 3 -
the Order. The Secretary of the Treasury has also delegated to
the War Refuges Board and its representatives the power to
authorize any public or private agencies who may be subject to
the provisions of our Trading with the enemy Act to communicate
with enemy territory for the purpose of carrying out the Order.
Scovell is authorised to act accordingly upon your confirmation
of his designation,
HULL
(GLW)
MRB:GLN:KG
4/20/44
II
A-5/3
S/CR
Regraded Unclassified
175
MJK-652
Rio dE Janeiro
This telegram must bE
paraphrastd before bEing
Dated April 20, 1944
communicated to anyone
other than a Government
Rec'd 8 p.m.
Agency. (BR)
SECRETARY of State,
DEPARTMENT OF STATE
Washington.
IN OF
APR 21
1471, April 20, 6 p.m.
TRATIONS
*No RECORDS
FOR THE SECRETARY OF THE TREASURY FROM THE
AMBASSADOR.
I personally transmitted to the Minister of Finance
your message in regard to the Joint Statement recom-
mending the Establishment of an international monetary
fund. HE was deeply appreciative of your interest in
this matter and suggestion of joint action. Finance
Minister, Souza Costa, asked ME to inform you that hE
would have released for publication on April 22 the
revised Joint Statement and that hE would at the same
time make appropriate comment in regard to Brazil's
desire to collaborate in international monetary control
plans.
FOR THE DEPARTMENT - The above refer to the Depart-
ment's 1251, April 18, 10 p.m., and 1264, April 20.
Embassy is translating final revision Joint Statement
for USE Finance Ministry in its public statement.
CAFFERY
RB
Regraded Unclassified
176
TELEGRAM SENT
KEM
April 20, 1944
This telegram must bE
paraphrased before being
Midnight
communicated to anyone
other than a Government
agency.. (BR)
DEPARTMENT OF STATE
DIVISION OF
AMEMBASSY,
APR 22 1944
LONDON.
COMMUNICATIONS
3175
AND RECORDS
FOR THE AMBASSADOR
This is a personal message from the Secretary of
the Treasury to the Chancellor of the Exchaquer.
QUOTE In accordance with the desire of the President
which I communicated to you in our cable no. 2651 WE
are planning to call a conference beginning the last
WEEK in May. It is EXPECTED that the President will
invite the United and Associated Nations to send
representatives to a formal financial and monetary
conference. The chief items on the agenda will bE the
drafting of proposals, for the Establishment of an
international monatary fund and an international bank
for reconstruction and development.
The President has indicated that hE will appoint
me head
Regraded Unclassified
177
-2- #3175, April 20, midnight, to London.
me head of the American dalagation and will indicate
in his letter that he hopes that Each government will
have its delegation headed by its chief financial
officer. It is contemplated that the delegates will bE
instructed by their respective governments to assemble
for the purpose of preparing concrete proposals to bE
formally presented later to the respective governments
for their acceptance or non-acceptance.
It would bE very helpful to me if I could have
your personal views on these contemplated arrangements
as soon as possible. It is important that there bE no
delay, as there is very little time to spare for com-
pleting arrangements. I should like to stress again
the urgency of holding the conference before the
political conventions in June. As soon ns I hear from
you WE shall bE prepared to discuss with you on an
informal basis the calling of a drafting committee to
begin work as soon as a conference is officially called.
END QUOTE
HULL
(DA)
FMA :EGC:ja
SA
Regraded Unclassified
178
KEM-598
London
This telegram must be
paraphrased before being
Dated April 20, 1944
comminicated to anyone
other than a Government
Rec'd 5:02 p.m.
agency. (BR)
DEPARTMENT OF STATE
DIVISION OF
Secretary of State,
APR 21 1941
Washington.
COMMUNICATIONS
AND RECORDS
US URGENT
3253, April 20, 7 p.m. (SECTION ONE).
Department's 3077, April 18, midnight.
The following is an urgent message from the
Chancellor of the Exchequer to Secretary Morgenthau:
"I thank you for your personal message of April
18. Arrangements are being made for publication here
on Saturday morning to fit the timing of publication
in the United States. We are informing the Dominions
of the agreed changes in the statement but owing to the
difficulties of synchronizing our publication with yours,
I doubt whether it will be possible for any of them to
publish simultaneously though they may be able to make
some announcement. AS for the representatives of the
European countries who are in England, we shall send them
a copy of what we publish but no question of simultaneous
publication or announcement by them could arise.
"TWO. I note
Regraded Unclassified
179
-2- #3253, April 20, 7 p.m. (SECTION ONE) from London.
"Two. I note that you propose to make a general
statement on the same lines as that by our Government
though not necessarily in identical language.
"Three. Owing to other parliamentary business
already determined, it is not possible for me to give
you a clear indication when contemplated debate will
take place. If for any reason it had to be deferred
for a considerable period, I could not expect you to
hold back on that account from any action you might
wish to take.
"Four. If the general reception of the statement
of principles indicates to your Government that a further
conference at an early date is desirable, we should try
to fall in with your plans though I am sure you will
understand that for various reasons both travel and
communications will be vory difficult to arrange.
"I think I should make plain to you our conception
of the nature of the conference that might be held. The
statement of principles will have appeared on April 22
and this will be the first occasion upon which many
countries who are important in international commerce
and whose adherence to the scheme would be necessary
for its successful
180
-3- #3253, April 20, 7 p.m. (SECTION ONE) from London.
for its successful operation will be definitely aware
of its contents. It is an important statement about
postwar international cooperation and its important
issues. My judgment is that a conference at the end
of May, if indeed it can be arranged at that date, in
view of the difficulties I have mentioned should be
summoned for the purpose of examining the statement of
principles and establishing a detailed text which would
then be the subject of formal consideration by govern-
ments so that they could declare their attitude to
the scheme as a whole.
WINANT
LMS
181
KEM-590
London
This telegram must be
paraphrased before being
Dated April 20, 1944
communicated to anyone
other than a Government
Rec'd 5:02 p.m.
agency. (BR)
Secretary of State,
Washington.
US URGENT
3253, April 20, 7 p.m., (SECTION TWO).
Five. As regards the Bank for Reconstruction
and Development, I have received your draft statement
of principles which you were good enough to send me.
Meanwhile Mr. Opie will have informed Dr. White of
our general views on the plans you have published
and will, I hope, have been in a position to give
Dr. White a memorandum which we had prepared. There
is no disagreement between us as to the objectives of
such a scheme but as you will have observed, we
approach it from a rather different standpoint and
I very much doubt whether it would be practicable for
us to reach agreement on a joint statement of principles
without a further conference between our respective
experts. The conference on the monetary fund might
provide the opportunity for this.
"In these
Regraded Unclassified
182
-2- #3253, April 20, 7 p.m. (SECTION TWO) from London.
"In these circumstances I think your suggestion
that you should explain to the Congressional Committee
that the statement of principles which you have sent
me is being released as having the approval of the
exports of a number of countries is premature and
might give rise to misunderstanding. Should it not be
presented at this stage as representing the views of
the technical experts of the United States?"
END OF MESSAGE.)
WINANT
LMS
Regraded Unclassified
183
SECRETARY OF OFFICE TREASURY
1944 APR 21 PM 2 28
TREASURY DEPARTMENT
NOT TO BE RE-TRANSMITTED
COPY NO. 11
SECRET
OPTEL No. 127
Information received up to 10 a.m., 20th April, 1944,
1. NAVAL
EAST INDIES. 19th. Aircraft from carriers supported
by Eastern Fleet attacked SABANG (SUMATRA). Wireless installa-
tions, dockyard, airfield and other targets were hit and large
fires left burning, including oil fuel cistern. 2 destroyer
escort vessels set on fire, 2 medium-sized ships hit and 24 air-
craft destroyed on ground. Our loss 1 aircraft, pilot safe.
2. AIR OPERATIONS
WESTERN FRONT. 18th/19th. 4048 tons were dropped
on Marshalling Yards in FRANCE.
19th. U.S. heavy bombers attacked targets at KASSEL,
ESCHWEDE, PADERBORN, GUTTERSLOH, LIPPSTADT and WERL dropping a
total of 1284 tons with results generally good to excellent.
Enemy casualties by fighters 16, 1, 2 for loss of five bombers
and 2 fighters, Medium and fighter bombers dropped 454 tons on
Coastal Defences N.E. FRANCE, railway centres at HASSELT, NAMUR
and MALINES as well as 315 tons on military objectives in
Northern France.
19th/20th. 12 enemy aircraft operated over KENT,
SUSSEX and SURREY with slight penetration to LONDON area.
Damage and casualties slight.
18th/19th. Casualties in LONDON area now reported -
51 killed and 150 seriously wounded.
HUNGARY. 16th/17th. Allied bombers dropped 67 tons
on BUDAPEST.
BULGARIA and RUMANIA. 17th. U.S. heavy bombers
dropped 426 tons on railway centres SOFIA and 333 tons at SAVA
near BELGRADE. Enemy casualties by bombers and fighters 24, 3,
9.
17th/18th. Allied bombers dropped 65 tons on
PLOVDIV Marshalling Yards 80 miles E.S.E. of SOFIA.
ITALY. 18th. Weather restricted bombing. Near
UDINE fighters scored 6, 2, 5 in combat and 11, 2, 9 on ground
for loss of 5 fighters.
Regraded Unclassified
cc-Fred Smith
184
April 21, 1944
9:04 a.m.
Wright
Patman:
Hello. This 1s Patman, Mr. Secretary.
HMJr:
How are you?
P:
Fine. I hope you're all right.
HMJr:
I just wanted to tell you how I'm looking
forward to coming down to your meeting.
P:
Well, I'm certainly glad of that. And
we're looking forward to it, too, Mr.
Secretary, and we'll do everything in the
world to make it a success.
HMJr:
Well, I'm sure it will and I think it's a
fine idea and I'm glad you all want me.
P:
Yes, sir. And that's the middle of the
Gulf Southwest, you know.
HMJr:
I know.
P:
And, by-the-way, will you give out the
statement from here -- from your office?
HMJr:
That I'm going to go?
P:
Yes.
HMJr:
I'll tell them to.
P:
All right. I think that would be better.
And I was talking down there and our friends
think that you should invite these Governors,
too. We're going to invite them.
HMJr:
I see.
P:
And if you'll do it, that will just cinch
things.
HMJr:
Well, I'll talk that over and I don't see
why I can't, seeing it's to be a War Bond
meeting.
P:
That's right, War Bond meeting -- and also
invite the War Bond Finance Chairman, you
see, from each State.
Regraded Unclassified
- 2 -
185
HMJr:
Fine.
P:
I'll furnish Fred Smith the names, if it's all
right.
HMJr:
Fred Smith.
P:
Yeah.
HMJr:
That's the fellow.
P:
Is he the one to deal with?
HMJr:
Yeah.
P:
All right, sir. Well, I'll do that.
HMJr:
Fine. And thank you for defending my honor
again yesterday.
P:
All right. Did you see that in the Record?
HMJr:
(Laughs)
P:
Well, I'll watch that and I'll be there this
afternoon.
is
HMJr:
He's just -- that fellow's crazy.
P:
Oh, he is crazy. He's just a nut.
HMJr:
And I don't think the Republicans like him any
better than I do.
P:
I don't think so.
HMJr:
But somebody has got to answer him and answer
him quickly just the way you did.
P:
Well, it should be answered, yes. That speech
got a lot of notice, that Mr. O'Connell fixed
up for me.
HMJr:
It did?
P:
Oh, yes. It received lots of notice around over
the country.
HMJr:
Well, I'm delighted.
Regraded Unclassified
186
- 3 -
P:
Yes, sir.
HMJr:
I'm delighted.
P:
Say, this afternoon, is there any reason why
that should be a secret meeting?
HMJr:
Ah ....
P:
What I mean, closed?
HMJr:
Do you mean as far as the Press goes?
P:
Yes.
HMJr:
I don't know. You see, what we're worried
about is we're not supposed to give anything
out until eight o'clock tonight and all the
other countries do it at the same time.
P:
Well, why don't you just say that, then, when
you come that as far as you are concerned, you
wouldn't object to it except for that agreement.
HMJr:
All right. I'll talk with Smith about it in
a few minutes.
P:
All right, sir. This fellow -- there's no use
of yielding to him on account of -- saying it's
a secret meeting and 80 on.
HMJr:
Oh, no. What I've done, you see, I've run up
against him on this -- what do they call it --
"Coinage, Weights and Measures" --- you see?
P:
Uh huh.
HMJr:
And he talks and I've gotten 80 I just don't
answer him.
P:
Well, he's got some crack-pots around him that
gets up these questions like Crawford. Crawford
has a bunch of crack-pots, too.
HMJr:
I see. Well, I just -- I got 80 I just don't
answer him.
P:
Yeah.
Regraded Unclassified
- 4 -
187
HMJr:
And it makes him wild.
P:
Yes. Well, you tell the fellows down there to
watch things up here and if they want anybody
answered for you, to let me know.
HMJr:
Fine.
P:
All right.
HMJr:
Thank you.
P:
All right, I sure do thank you, Mr. Secretary,
and I'm delighted that you're going to be down
with us.
HMJr:
Well, I'm looking forward to it.
P:
Well, thank you very kindly, sir. It pleases
us very much.
HMJr:
Bye.
P:
Bye.
Regraded Unclassified
188
April 21, 1944
9:20 a.m.
Treasury
Operator:
The Secretary is on the wire, operator.
Overseas
Operator:
Hello.
HMJr:
Hello.
Operator:
Mr. Henry Morgenthau, Jr.?
HMJr:
In person.
Operator:
On the overseas call for Mr. William Averill
Harriman
HMJr:
Yes.
Operator:
we're all ready and I'd like to advise you
in the interest of National security
HMJr:
Yes.
Operator:
you are requested to refrain from discussing
departure or arrival, name or location of ships....
HMJr:
Yes.
Operator:
military topics of any kind
HMJr:
Yes.
Operator:
technical weather information
HMJr:
Yes.
Operator:
or any other information which may aid or
comfort the enemy.
HMJr:
All right.
Operator:
Just a moment now for Mr. Harriman.
HMJr:
Thank you.
Foreign
Operator:
Hello, sir.
HMJr:
Hello.
Regraded Unclassified
189
- 2 -
Operator:
Hello, sir.
HMJr:
Hello. Hello.
Averill
Harriman:
Hello.
HMJr:
Hello.
H:
Henry?
HMJr:
Yes.
H:
This is Averill.
HMJr:
Good morning.
H:
Have you gotten the cables I sent last night?
HMJr:
No, I have not.
H:
Do you mind inquiring at the State Department?
HMJr:
I'd love to.
H:
The answer, now, is "yes".
HMJr:
The answer, now, is "yes"?
H:
With the request not to discuss it until you've
seen my cables.
HMJr:
Now, wait a minute. See if I've got it -- the
answer, now, is "yes" but I shouldn't discuss
it until I see your cable?
H:
Yes, because there are certain aspects about it
that you will have to look at before you -- for
you to make up your mind about before you ....
HMJr:
Averill, we -- you'll have to repeat slowly
because this 18 not too good.
H:
I say there are certain statements in connection
with this that you will have to
....
HMJr:
There are certain things in the cable that I
ought to see?
H:
Hello?
Regraded Unclassified
130
- 3 -
HMJr:
Hello.
H:
I say, my cable gives you a suggestion.
HMJr:
Averill, can you hear me?
H:
I hear you perfectly.
HMJr:
Hello?
H:
I say, I hear you perfectly.
HMJr:
Well, I hear you off and on. I should -- let
me see if I got this right. There are certain
things in the cable that I should see before
I make any announcement?
H:
Yes.
HMJr:
Is -- hello?
H:
Hello.
HMJr:
Well, I'll get hold of Dean Acheson and tell
him to get me the cable right away.
H:
Yes. And don't do anything until you have read
the cable.
HMJr:
I will do nothing until I have read the cable.
H:
And ask Mr. White to get in touch with the
experts there.
HMJr:
And ask White to be in touch with the experts
in Washington?
H:
Yes. Ask Mr. White to get in touch with the
experts and see if they have heard from their
people.
HMJr:
I'll do that.
H:
I'd appreciate very much being told what your
decision 1s.
HMJr:
I -- the minute we make one I'll let you know.
H:
Yes. Okay.
Regraded Unclassified
191
- 4 -
HMJr:
Thank you 80 much for your help.
H:
Not at all.
HMJr:
Thank you.
H:
Good luck to you.
HMJr:
Bye.
H:
Bye.
192
April 21, 1944
9:27 a.m.
HMJr:
Hello.
J. E.
Brown:
Good morning, Mr. Secretary.
HMJr:
Good morning. I've tried to reach Mr. Acheson
and I couldn't. Now, Ambassador Harriman just
called me from Moscow.
B:
Yes.
HMJr:
And he said there's a very important cable
there for me somewhere in the State Department.
B:
Yes.
HMJr:
Now, I'm going up on the Hill with Mr. Acheson
at a quarter of ten.
B:
Uh huh.
HMJr:
And we've been waiting for this answer from
Russia. Now, is there any way
B:
Well, now, Mr. Secretary, he may have sent it
but it may not have arrived.
HMJr:
Well.
B:
You know with the problem -- it's the old
problem of getting telegrams back and forth
to Moscow with the atmospheric conditions
HMJr:
Yeah. Well, now, look. Will you do this for
me? Will you ask whoever is in charge of your
code room and 80 forth and 80 on
B:
Yes.
HMJr:
to give this thing priority?
B:
I'll be very glad to do that.
HMJr:
And then the second you've got it, let Mrs.
Klotz know, herself.
B:
Yes.
HMJr:
She'll send a Secret Service man over to get it
and he can rush it up to me on the Hill.
Regraded Unclassified
193
- 2 -
B:
Fine.
HMJr:
See?
B:
I'll be very glad to do that.
HMJr:
But I mean, whatever it is, if there's one from
Harriman, please give it first priority.
B:
Yes, indeed.
HMJr:
Because I'm awfully anxious to get it.
B:
All right, sir.
HMJr:
Because he's
....
B:
I'll take care of that right away.
HMJr:
He says the Russians have said "yes" with certain
qualifications.
B:
Uh huh.
HMJr:
Now, if I can tell these four Committees on the
Hill that they've said "yes"
....
B:
Yes.
HMJr:
Would you give it as immediate attention
....
B:
I'll -- I'll do that right away, sir.
HMJr:
Thank you.
B:
Fine. Not at all.
Regraded Unclassified
194
April 21, 1944
9:35 a.m.
DEFERMENTS
Present: Mr. C.S. Beil
Mr. Jordan
Mrs. Klotz
MR. BELL: Mr. Jordan doesn't go along with me on
one - Taggart of Procurement. He has only been with us
for two months. I warned Cliff that for the future
not to take on people that are subject to the draft with-
out first clearing with us, but I have talked with Mr.
Gaston about this case and we both feel that he should
be deferred because of his age.
MR. JORDAN: He has only been in the Treasury three
months.
H.M.JR: Oh, he has been in the Government. Oh well,
there has to be some incentive to work for the President.
(The Secretary approves deferment list No. 1, attached)
MR. BELL: This is Charlie Adams' case. He has
declined a commission in the Navy at Ted Gamble's request.
Ted thinks the sun rises and sets in him. As far as we
know he is doing a grand job. Since McNamara has left,
he has absorbed practically that entire field of work.
H.M.JR: He is not on the key list, though.
MR. BELL: That is true. I am reasonably sure we
can get him on the key list.
MR. JORDAN: The Committee has refused to put adminis-
trative positions in the Bureau on the key list.
Regraded Unclassified
195
- 2 -
MR. BELL: That is true, but this is different.
This is a recent reclassification. We have had no oppor-
tunity to put this on the key list. Actually the man has
to be an accountant, and if we don't work it one way, we
will another.
H.M.JR: Are we asking three months or six months?
MR. BELL: In the case of Adams? I think he ought
to be deferred for six months.
H.M.JR: It doesn't say here.
MR. JORDAN: You see, all of our requests go over
for six months and they sometimes cut them down.
H.M.JR: That is all right. (The Secretary signs the
deferment application of Charles W. Adams, attached)
Is that all?
MR. BELL: Yes, sir.
Regraded Unclassified
#
1
196
DEFERMENTS
April 19, 1944.
Title
Age
No. of children
INTERNAL REVENUE:
Beott, Matthew J.
Chief, Employment Tax
37
4
Division (Arizona)
Siegle, Sol
Agent
34
None
MINT BUREAU:
Neisser, Philip B.
Asst. Supt. of Melting and
33
1
Refining (Philadelphia)
CUREMENT DIVISION:
Taggart, Maurice J.
Asst. Chief, Finance Div.
36
2
Weiss, Basil P.
Chief, Lend-Loase Transporta-
30
1
tion and Storage Division
SUPER'S OFFICE:
Issace, Hayden B.
Fiscal Accountant
34
1
BAR FINANCE DIVISION:
Henry, Edgar Cowden
Deputy Manager (Texas)
33
1
Deferment for the above 7 employees is recommended by the Agency Committee:
p/ Charles S. Bell with
I approve all of the above cases
the exception of request for deforment
of Maurice J. Taggart:
Jaseph a.Jordan
Approved:
APR 21 1944
(Signed) H. Morgenthau, Jr.
Secretary of the Treasury.
Regraded Unclassified
II 197
April 19, 1944
The Committee on Deferments gives approval to the attached
request for the deferment of Mr. Charles W. Adams, Assistant to
the National Director, War Finance Division. Mr. Adams is 31
years of age, is married and has two children.
Mr. Adams exercises overall administrative control of the
activities of the War Finance Division, including the headquarters
office in Washington and 156 field offices; coordinates the work
of the two branches of the organisation (departmental and field);
makes executive decisions pertaining to all administrative matters;
formulates basic policies and carries out the National Director's
desires in connection with all aspects of the program. Because of
Mr. Adams' wide experience and training derived in carrying on this
work since the inception of the organisation, and his knowledge of
the entire program as it relates to both the departmental and field
services, the loss of his services would seriously impair the War
Bond activity.
Charles S. Bell
acting Chairman
Jaseph a.Jandan.
Approved: APR 2 1 1944
(Signed) H. Morgenthau, Jr.
Secretary of the Treasury
w
Regraded Unclassified
198
April 21, 1944
9:40 a.m.
APPEARANCE BEFORE CONGRESSIONAL COMMITTEES
Present: Mr. Smith
Mr. Shaeffer
Mrs. Klotz
H.M.JR: Good morning.
Patman thinks it will be helpful if the press was
in this afternoon on account of this fellow White. But
I don't see how we can let them in this afternoon if we
don't let them in this morning. I don't think we will
let the press in.
MR. SMITH: You mean into the sessions?
H.M.JR: Yes. This is Washington. This is the
Office of the Secretary of the Treasury.
MR. SMITH: I didn't know what you were talking about.
I am not sure that Rayburn isn't planning, because he said
something yesterday very clearly about this being open
to the public, and I was going to check up, but there is
no way to do it.
H.M.JR: We can check up when we go on the Hill. I
don't think it should be.
MR. SMITH: I don't think it should be this morning
because of the - I don't think you dare have a meeting
this morning because they will have it before the Senators
have it. I think that is wrong.
H.M.JR: Well, get organized. I will be ready in &
couple of minutes.
Regraded Unclassified
199
- 2 -
MR. SMITH: There is one word that Mr. Bernstein
says is vital that we stick in on Page 16.
MR. SHAEFFER "Economic policy" isn't it? I have
it in this mimeographed copy.
MR. SMITH: On Page 16. "Any other agreements."
H.M.JR: What line?
MR. SMITH: Second line. u few other agreements" -
it should be, "...few other economic agreements."
H.M.JR: I will be outside in a few minutes.
Any leaks from last night?
MR. SHAEFFER: No, sir. Not a line in the paper. The
The Journal columnist had a piece quoting Sol Bloom.
H.M.JR: Do you think I should try to do anything
with Pearson about when they saw the Secretary - about a
stenographer taking notes? He keeps talking about my
having dictaphones all the time.
MRS. KLOTZ: I wouldn't. If I would say anything to
him, I would have him for lunch.
MR. SHAEFFER: Yes.
MR. SMITH: I think that will be good, if you could
take it. I don't think that is damaging. That is just
so much noise.
MRS. KLOTZ: And I would laugh at it.
MR. SMITH: If you were anybody but the Secretary of
the Treasury, it would be alarming, but I am not sure that
it is such a terribly bad idea for the Secretary of the
Treasury to be cautious.
MR. SHAEFFER: It wasn't printed locally.
Regraded Unclassified
200
April 21, 1944
12:23 p.m.
HMJr:
Hello.
Operator:
Ambassador Gromyko.
HMJr:
Hello.
Ambassador
Gromyko:
How do you do, Mr. Secretary?
HMJr:
How are you?
G:
Thank you. I am all right. How are you today?
HMJr:
Fine. Well, we had a very good message from
Mr. Harriman.
G:
Yes, I am familiar with it.
HMJr:
You are familiar?
G:
Yes.
HMJr:
And I am very happy about it.
G:
Uh huh.
HMJr:
And we've sent an answer through Mr. Harriman
to Mr. Molotov.
G:
Uh huh.
HMJr:
But I wanted to, also, send one through you.
G:
Uh huh.
HMJr:
And -- telling them how happy I am that I was
able to tell the Committee this morning
G:
I will do
HMJr:
that the Soviet Government was going to
associate themselves with us.
G:
He's already advised us.
HMJr:
Excuse me?
G:
He has already advised us.
Regraded Unclassified
201
- 2 -
HMJr:
I don't understand that.
G:
We have been -- did you receive the full text
which was handed to the Ambassador?
HMJr:
I am not sure. The trouble is that the one that
was handed to the Ambassador came through to us
and it was very much "garbled".
G:
I see. Well, Mr. Secretary, we will transmit to
you the very short, very brief text of the --
which was handed to the Ambassador by Mr. Molotov.
HMJr:
Could I get that before a quarter of two?
G:
Before a quarter of -- yes, you will get it.
HMJr:
And I'll be here in my office if he would come
but before
G:
Yes.
HMJr:
a quarter of two.
G:
Yes. Because I received it and I am expecting
the chauffeur will arrive within several
minutes to the Embassy and I will give this
text to him
HMJr:
Yes.
G:
and will ask him to transmit it to you
immediately.
HMJr:
Here at the Treasury.
G:
All right.
HMJr:
Because I go back up again to testify before the
House.
G:
All right. The best wishes for you in this
difficult work.
HMJr:
Well, you'll be interested I was testifying
and Senator Vandenberg, who 18 you know who
he 18.
G:
(Laughs) I think I know a little bit.
Regraded Unclassified
- 3 -
202
HMJr:
Yes. Well, Senator Vandenberg whispered to me.
He said, "Henry, I'm for this plan."
G:
Uh huh.
HMJr:
So that's -- makes it a success in the Senate,
if he's for it.
G:
I see. I see. Well, I am delighted, too, that
you and I received such a wire.
HMJr:
Yes, it gives me a very happy feeling and the
experts will -- they'll get together. If we
can't do any other way, we'll give them some
Vodka and I'll give them some American Bourbon.
G:
(Laughs)
HMJr:
And we'll make the Russians drink the Bourbon
and the Americans drink the Vodka and then they'll
get together.
G:
(Laughs) That is right.
HMJr:
How's that? All right. Thank you.
G:
Thank you for calling.
HMJr:
Thank you.
G:
Good bye.
203
April 21, 1944
Mr. Collado took with him up on the Hill the cable
which the State Department received from Harriman for
Mr. Morgenthau. He delivered it to Mr. Morgenthau at
the Committee hearing where Mr. Morgenthau was testifying
this morning on the establishment of an International
Monetary Fund. The hearing was adjourned for a couple of
minutes while Mr. Morgenthau read the cable, and Bernstein,
Collado and Smith left the hearing and drafted a reply,
which the Secretary read to the Committee. The reply is
attached hereto.
204
United States Senate
WASHINGTON, D.C.
We have just received a message from Moscow
asseriate theruselves with
that the Soviet experts agree with the general
principles of the Koint Statement, and that
the Joint Statement will be published in
Moscow. There are some points of detail on
whSch they wish to continue discussion after
the principles have been published.
160%
ey
Statement of Secretary Morgenthau before Sen.
205
Coms. on Foreign Relations, Banking and Currency,
and the Special Committee on Post-War Economic
Policy and Planning,
and before the
House of Representative Coms. on Foreign Affairs
Ways and Means, Banking and Currency, Coinage,
Weights and Measures, and Special Com. on Post-
War Economic Policy and Planning
Friday, April 21, 1944
206
Gentlemen:
I am happy to tell you today that technical
experts of the United Nations have agreed upon a set
of basic principles for an International Monetary
Stabilization Fund. This is a great step forward.
It is of greatest importance to all of us who believe
that the nations of the world can cooperate in dealing
with international economic problems.
Technicians representing some of these thirty
nations have prepared a joint statement of the
principles which are agreed upon. This statement
does not, of course, bind any government to participate
in the Stabilization Fund, though it does mean that
the Fund will be recommended to each of the governments
as a practical means of meeting post-war monetary
problems.
207
- 2 -
I want to call particular attention to some of the
facts contained in this joint statement, but before I do
that, I should like to review with you some of the
things that have happened since I appeared before these
Committees on October 5 of last year. At that time, I
told you I would like to keep you informed of progress,
and accordingly I appreciate this opportunity to bring
you up to date.
Since I last talked to you, we have discussed the
principles of the International Stabilization program
with bankers, labor representatives and other interested
groups in Washington, Chicago, Boston, Philadelphia,
New York, and other cities.
208
- 3 -
Out of these meetings came helpful suggestions, many of
which were incorporated in our plans.
The vast majority of those with whom we have talked
are inclined to look favorably upon the principle of
co-operation to maintain stable and orderly exchange
rates. Informed opinion seems to point to private
investment on a world-wide basis as vital to post-war
recovery and reconstruction; and the stabilization
of currencies among the United Nations through the
medium of an international fund, is generally believed
to be a necessary prerequisite to this investment.
209
- 4 -
I believe we cannot expect American business men, nor
business men of any nation, to take major financial
risks, immediately upon the heels of a catastrophic
global war, without some assurance that steps have
been taken to prevent their investments from being
jeopardized by unduly fluctuating money values and
severe exchange restrictions.
Having studied the world picture after the last
war, we are all agreed that an effort must be made
to prevent, insofar as possible, harmful fluctuations
of currency; and to prohibit deliberate manipulation
of currencies in an effort to secure unfair competitive
advantage in world trade.
210
- 5 -
When I was here on October 5, I spoke of a projected
International Bank for Reconstruction and Development.
Because discussions on the Bank were initiated
somewhat later they are not yet completely finished.
I can tell you, however, that there is considerable
support for the general principles embodied in the
World Bank, and that good progress has been made.
Those with whom we have discussed the problem
of reviving post-war international investment regard
the Bank as essential to the expansion of international
trade and the maintenance of a high level of business
activity.
211
- 6 -
They believe it necessary to take steps to encourage
and aid private investors in providing an adequate
volume of long-term investment capital for productive
purposes.
The discussions we have had contemplate the
establishment of a Bank for Reconstruction and
Development to facilitate long-term investment capital
through private financial agencies by guaranteeing and
participating in loans made by private investors. The
Bank would also supplement investment of private financial
agencies, if this becomes necessary, by lending for
productive purposes from its own resources when private
capital is otherwise not available on reasonable terms.
212
- 7 -
A full statement of recommendations on the
establishment of such a Bank, and of the principles
on which such a Bank should be based, is still in
preparation by technicians. It is my hope that this
statement of principles will soon be completed and
that it will be issued later. Before it is published,
I shall fully inform your Committees.
Now I should like to explain briefly some of the
basic principles upon which the technicians are agreed in
connection with the International Monetary Fund.
213
- 8 -
Here are the purposes and policies as set forth in
the joint statement:
(1) To promote international monetary cooperation
through a permanent institution which provides
the machinery for consultation on international
monetary problems.
(2) To facilitate the expansion and balanced growth
of international trade and to contribute in
this way to the maintenance of a high
level of employment and real income, which
must be a primary objective of economic
policy.
214
- 9 -
(3) To give confidence to member countries by
making the Fund's resources available to
them under adequate safeguards, thus giving
members time to correct maladjustments in
their balance of payments without resorting
to measures destructive of national or
international prosperity.
(4) To promote exchange stability, to maintain
orderly exchange arrangements among member
countries, and to avoid competitive exchange
depreciation.
215
- 10 - -
(5) To assist in the establishment among member
countries of multilateral payments facilities
on current transactions, and to aid in the
elimination of foreign exchange restrictions
which hamper the growth of world trade.
(6) To shorten the periods and lessen the degree
of disequilibrium in the international
balance of payments of member countries.
216
- 11 -
The joint statement recommends that all of the
United and Associated Nations subscribe approximately
$8 billion to the Fund in the form of gold and local
currency. The resources of the Fund would be
available under adequate safeguards to help member
countries to maintain exchange stability and to
correct maladjustments in their balance of payments.
Member countries would be able to buy foreign exchange
from the Fund with their own currencies, to the extent
of their quotas, in order to meet international
payments consistent with the purposes of the Fund.
217
- 12 -
The par value of currencies of member countries
would be expressed in gold and could be changed only
at the request of member countries after consultation
and approval of the Fund. The Fund would approve a
requested change in parity only if it were essential
to correct fundamental disequilibrium. Prompt
consideration would be given to requests for necessary
adjustment of exchange rates. Member countries would
not allow their exchange rates to fluctuate outside a
narrow range based on the agreed gold parity.
218
- 13 -
Voting power in the Fund would be closely related
to quotas. A member country could withdraw from the
Fund immediately by giving notice in writing, and
obligations would be liquidated within a reasonable
time.
During the period of transition following the war,
member countries would be permitted to retain their
exchange controls with the expectation that these
would gradually be relaxed.
219
- 14 -
I am frank to say that in my opinion the agreement
of the technical experts to these principles constitutes
a long step on the way toward preventing a breakdown
of currencies and the imposition and retention of
restrictive and discriminatory exchange measures after
the war. Through international cooperation now we
can assure a stable and orderly pattern of post-war
exchange rates.
The purposes set forth in this Joint Statement
have long been the international monetary policies of
the United States. For years it has been our objective
to have these policies adopted by other countries.
220
- 15 -
We know of no better way of assuring general adherence
to these policies than through international cooperation
in an International Monetary Fund.
We believe that it is of the greatest importance
that all of the United Nations are in agreement on the
best means to deal with these international financial
problems after the war. This is concrete evidence
that the United Nations can and will work together in
establishing a peaceful and prosperous world just as
they are now fighting together to destroy tyranny and
oppression.
International cooperation on monetary and financial
matters is the keystone of successful cooperation on
all international economic problems.
221
- 16 -
Unless we agree to expand world trade and develop the
economic
world economy, few other agreements which we might
make will or can be effective.
The tentative proposals that have been under
discussion by the technical experts are part of a
program for cooperation on international economic problems
among the United Nations. The objectives of this program
are the expansion and development of international
trade, the restoration of international investment for
productive purposes, the maintenance of stable and
orderly exchanges. Through these means, we can
contribute to a high level of employment and production.
222
- 17 -
The establishment of an International Monetary Fund and
a Bank for Reconstruction and Development are important
steps in the attainment of the objectives of this
broad program.
I want to emphasize again that the discussions up
to now have all been of a technical nature and
exploratory in character. Whatever has been done
represents the views of the technical experts of
this country and of other countries that have been
studying these questions. The United States is not in
any way committed until Congress has taken action.
223
- 18 -
It is my hope that after studying the recommendations
of the technical experts, the governments of the United
Nations will come to the conclusion that there is
sufficient basis of agreement at a technical level to
warrant the convening of a formal conference.
I am happy to say that the President has authorized
me to state that if a conference is held, it is his
intention to invite direct Congressional participation
in the work of the United States Delegation.
FOR RELEASE AFTER 8:00 P.M.,
224
FRIDAY, APRIL 21, 1944
Joint Statement by Experts on the Establishment
of an International Monetary Fund
Sufficient discussion of the problems of international
monetary cooperation has taken place at the technical level
to justify a statement of principles. It is the consensus
of opinion of the experts of the United and Associated
Nations who have participated in these discussions that the
most practical method of assuring international monetary
cooperation is through the establishment of an International
Monetary Fund. The principles set forth below are designed
to constitute the basis for this Fund. Governments are not
asked to give final approval to these principles until they
have been embodied in the form of definite proposals by the
delegates of the United and Associated Nations meeting in A
formal conference.
I. Purposes and Policies of the International Monetary Fund.
The Fund will be guided in all its decisions by the pur-
poses and policies set forth below:
1. To promote international monetary cooperation through
8 permanent institution which provides the machinery for con-
sultation on international monetary problems.
2. To facilitate the expansion and balanced growth of
international trade and to contribute in this way to the
maintenance of a high level of employment and real income,
which must be a primary objective of economic policy.
3. To give confidence to member countries by making
the Fund's resources available to them under adequate safe-
guards, thus giving members time to correct maladjustments
in their balance of payments without resorting to measures
destructive of national or international prosperity.
4. To promote exchange stability, to maintain orderly
exchange arrangements among member countries, and to avoid
competitive exchange depreciation.
5. To assist in the establishment of multilateral pay-
ments facilities on current transactions among member coun-
tries and in the elimination of foreign exchange restrictions
which hamper the growth of world trade.
6. To shorten the periods and lessen the degree of dis-
equilibrium in the international balance of payments of
member countries.
Regraded Unclassified
225
- 2 -
II. Subscription to the Fund.
a.s. A2.5 $1.2 billing
u.k.
1. Member countries shall subscribe in gold and in
3.9
45'
their local funds amounts (quotas) to be agreed, which will China
amount altogether to about $3 billion if all the United and
Associated Nations subscribe to the Fund (corresponding to
about $10 billion for the world as a whole).
2. The quotas may be revised from time to time but
changes shall require a four-fifths vote and no member's
quota may be changed without its assent.
3. The obligatory gold subscription of a member coun- u.s.
try shall be fixed at 25 percent of its subscription (quota) million $625
or 10 percent of its holdings of gold and gold-convertible
exchange, whichever is the smaller.
III. Transactions with the Fund.
1. Member countries shall deal with the Fund only
through their Treasury, Central Bank, Stabilization Fund,
or other fiscal agencies. The Fund's account in a member's
currency shall be kept at the Central Bank of the member
country.
2. A member shall be entitled to buy another member's
currency from the Fund in exchange for its own currency on
the following conditions:
(a) The member represents that the currency de-
manded is presently needed for making pay-
ments in that currency which are consistent
with the purposes of the Fund.
(b) The Fund has not given notice that its holdings
of the currency demanded have become scarce in
which case the provisions of VI, below, come
into force.
(c) The Fund's total holdings of the currency
offered (after having been restored, if below
that figure, to 75 percent of the member's
quota) have not been increased by more than take Quota more will
25 percent of the member's quota during the than
+ years
previous twelve months and do not exceed
de ex X and you
200 percent of the quota.
any country
Regraded Unclassified
226
- 3 -
(d) The Fund has not previously given appropriate
notice that the member is suspended from
making further use of the Fund's resources
on the ground that it is using them in a
manner contrary to the purposes and policies
of the Fund; but the Fund shall not give such
notice until it has presented to the member
concerned a report setting forth its views
and has allowed a suitable time for reply.
The Fund may in its discretion and on terms which safe-
guard its interests waive any of the conditions above.
3. The operations on the Fund's account will be limited
to transactions for the purpose of supplying a member coun-
try on the member's initiative with another member's currency
in exchange for its own currency or for gold. Transactions this
provided for under 4 and 7, below, are not subject to
limitation.
4. The Fund will be entitled at its option, with a
view to preventing a particular member's currency from be-
coming scarce:
(a) To borrow its currency from a member country;
(b) To offer gold to a member country in exchange
for its currency.
another member's currency from the Fund in exchange for its
5. So long as a member country is entitled to buy
own currency, it shall be prepared to buy its own currency
from that member with that member's currency or with gold.
This shall not apply to currency subject to restrictions in
have accumulated as 8 r^sult of transactions of a current
conformity with IX, 3 below, or to boldings of currency which
account nature effected before the removal by the member
country of restrictions on multilateral clearing maintained
or imposed under X, 2 below.
6. A member country desiring to obtain, directly or
indirectly, the currency of another member country for gold
This shall not preclude the sale of nowly-mined gold by &
to acquire the currency by the sale of gold to the Fund.
is expected, provided that it can do so with equal advantage,
gold-producing country on any market.
7. The Fund may also acquire gold from member countries
in accordance with the following provisions:
(a) A member country may repurchase from the Fund
for gold any part of the latter's holdings of
its currency.
Regraded Unclassified
- 4 -
227
say payments(b) (b)
So long as a member's holdings of gold and gold-
convertible exchange exceed its quota, the Fund
must be me we
in selling foreign exchange to that country shall
good if country
require that one-half of the net sales of such
has more
to guova.
exchange during the Fund's financial year be
paid for with gold.
(c) If at the end of the Fund's financial year a
member's holdings of gold and gold-convertible
my must
the increasin
exchange have increased, the Fund may require
has dings to
up to one-half of the increase to be used to
charp local
repurchase part of the Fund's holdings of its
currency so long 88 this does not reduce the
nency from
Jund.
Fund's holdings of a country's currency below
75 percent of its quota or the member's hold-
ings of gold and gold-convertible exchange
below its quota.
IV. Par Values of Member Currencies.
1. The par value of a member's currency shall be agreed
with the Fund when it is admitted to membership, and shall be
d
expressed in terms of gold. All transactions between the Fund
eld.
and members shall be at par, subject to a fixed charge payable
by the member making application to the Fund, and all transac-
tions in member currencies shall be at rates within an agreed
percentage of parity.
2. Subject to 5, below, no change in the per value of 8
member's currency shall be made by the Fund without the coun-
try's approval. Member countries agree not to propose a
change in the parity of their currency unless they consider
it appropriate to the correction of a fundamental disequi-
librium. Changes shall be made only with the approval of the
Fund, subject to the provisions below.
3. The Fund shall approve a requested change in the par
value of 8. mamber's currency, if it is essential to the correc-
tion of A fundamental disequilibrium. In particular, the Fund
shall not reject a requested change, necessary to restore
equilibrium, because of the domestic social or political pol-
icies of the country applying for a change. In considering
& requested change, the Fund shall take into consideration
the extreme uncertainties prevailing at the time the parities
of the currencies of the member countries were initially
agreed upon.
4. After consulting the Fund, a member country may
change the established parity of its currency, provided the
proposed change, inclusive of any previous change since the
establishment of the Fund, does not exceed 10 percent. In
the case of application for 8 further change, not covered by
Regraded Unclassified
228
- 5 -
the above and not exceeding 10 percent, the Fund shall give
its decision within two days of receiving the application,
if the applicant so requests.
5. An agreed uniform change may be made in the gold
value of member currencies, provided every member country
having 10 percent or more of the aggregate quotas approves.
V. Capital Transactions.
1. A member country may not use the Fund's resources
to meet a large or sustained outflow of capital, and the
Fund may require a member country to exercise controls to
vision is not intended to prevent the use of the Fund's
prevent such use of the resources of the Fund. This pro-
resources for capital transactions of reasonable amount re-
quired for the expansion of exports or in the ordinary
course of trade, banking or other business. Nor is it in-
tended to prevent capital movements which are met out of a
member country's own resources of gold and foreign exchange,
provided such capital movements are in accordance with the
purposes of the Fund.
2. Subject to VI below, 8 member country may not us 3
its control of capital movements to restrict payments for
current transactions or to delay unduly the transfer of
funds in settlement of commitments.
VI. Apportionment of Scarce Currencies.
1. When it becomes evident to the Fund that the demand
for a member country's currency may soon exhaust the Fund's
holdings of that currency, the Fund shall so inform member
countries and propose an equitable method of apportioning
the scarce currency. "Then & currency is thus declared
of the scarcity and containing recommendations designed to
scarce, the Fund shall issue a report embodying the causes
bring it to an end.
2. A decision by the Fund to apportion a scarce cur-
rency shall operate as an authorization to a member country,
after consultation with the Fund, temporarily to restrict
the freedom of exchange operations in the affected currency,
rationing the limited supply among its nationals, the member
and in determining the manner of restricfing the demand and
country shall have complete jurisdiction.
VII. Management.
1. The Fund shall be governed by & board on which each
member will be represented and by an executive committee.
The executive committee shall consist of at least nine mem-
bors including the representatives of the five countries
with the largest quotas.
Regraded Unclassified
229
. 6 -
vadeo
2. The distribution of voting power on the board and
the executive committee shall be closely related to the
quotas.
R.
spc.
5p.e.
3. Subject to II, 2 and IV, 5, all matters shall be
settled by A majority of the votes.
4. The Fund shall publish at short intervals a state-
ment of its position showing the extent of its holdings of
member currencies and of gold and its transactions in gold.
VIII. Withdrawal.
1. A member country may withdraw from the Fund by giv-
ing notice in writing.
2. The reciprocal obligations of the Fund and the
country are to be liquidated within 8 reasonable time.
3. After a member country has given notice in writing
of its withdrawal from the Fund, the Fund may not dispose
of its holdings of the country's currency except in accord-
ance with t' e arrangements made under 2, above. After a
country has given notice of withdrawal, its use of the
resources of the Fund is subject to the approval of the Fund.
IX. The Obligations of Member Countries.
1. Not to buy gold at a price which exceeds the agreed
parity of its ourrency by more than 8 prescribed margin and
not to sell gold at & price which falls below the agreed
parity by more than B. prescribed margin.
2. Not to allow exchange transactions in its market
in currencies of other members at rates outside a prescribed
range based on the agreed parities.
3. Not to impose restrictions on payments for current
international transactions with other member countries (other
than those involving capital transfors or in accordance with
VI, above) or to engage in any discriminatory currency
arrangements or multiple currency practices ithout the
approval of the Fund.
X. Transitional Arrangements,
1. Since the Fund is not intended to provide facilities
for relief or reconstruction or to deal with international
indebtedness arising out of the war, the agreement of &
member country to provisions III, 5 and IX, 3 above, shall
ments at its disposal to facilitate the sottlement of the
not become operative until it is satisfied AB to the arrange-
Regraded Unclassified
230
- 7 -
balance of payments differences during the early post-war
transition period by means which will not unduly encumber
its facilities with the Fund.
2. During this transition period member countries may
maintain and adapt to changing circumstances exchange regula-
tions of the character which have been in operation during
the war, but they shall undertake to withdraw as soon 88
possible by progressive stages any restrictions which im-
pede multilateral clearing on current account. In their
exchange policy they shall pay continuous regard to the
principles and objectives of the Fund; and they shall take
all possible measures to develop commercial and financial
relations with other member countries which will facilitate
international payments and the maintenance of exchange
stability.
3. The Fund may make representations to any member
that conditions are favorable to withdrawal of particular
restrictions or for the general abandonment of the restric-
tions inconsistent with IX, 3 above. Not later than three
years after coming into force of the Fund any member still
retaining any restrictions inconsistent with IX, 3 shall
consult with the Fund as to their further retention.
4. In its relations with member countries, the Fund
shall recognize that the transition period is one of change
and adjustment, and in deciding on its attitude to any pro-
posals presented by members it shall give the member country
the benefit of any reasonable doubt.
231
Transmitted by Secret Service Agent Slye
at 4:20
Sent to Mr. Latta's Office
To be sent by pouch.
Copy of telegram # 1380 from
Mosson imbred.
232
April 21, 1944
My dear Mr. President:
I thought you would like to know some of the things
that have been happening behind the scenes in connection
with our testifying before the Senate and House Commit-
tees.
Only by telling the English that I would go up and
testify whether I heard from them or not were we finally
able to get an agreement out of them to go along with
the principles involved. The Russians also have been
stalling us, and yesterday I called up both Harriman
in Moscow and Ambassador Gromyko here to put all the
pressure I could on them to get the Russians to come
along. I never got an answer from the Russians until
I was in the middle of my testimony before the four
Committees in the Senate this morning. You will find
the message attached to this letter. I thought you
would be most pleased that the Soviet Government de-
cided to go along with us "to secure due effect in the
rest of the world". In other words, they want to be
associated with us in the eyes of the world. State and
Treasury both think this is highly significant, as I
am sure you will also.
Before leaving the hearing in the Senate, Senator
Vandenberg whispered to me that he would support this
program. The fact that I was able to tell the Senate
that you would appoint members of Congress to the
American Delegation made a great hit.
I an dictating this letter between hearings, so I
do not know how I will be received in the House this
afternoon, or what kind of publicity we will get in the
morning papers, but I am hoping for the best.
Regraded Unclassified
233
- 2 -
I was 80 happy to learn that both Jimmy and Franklin
received highly deserved promotions, and may I extend my
congratulations to you as their father.
With warm regards,
Sincerely yours,
(Signed) Henry
The President,
The White House.
234
MEMORANDUM FOR THE SECRETARY.
April 21, 1944.
Mail Report
Although this week's mail was heavier than
that of last week, no new subject appeared. Bond
matters accounted for roughly 70%; the other 30% of
the week's receipts concerning taxes, checks, cur-
rency, and now and then 8. Foreign Fund problem.
The Fifth Drive continued to figure prominently
in the mail. Our correspondents submitted slogans,
songs, and poems; offered personal services; and out-
lined possible drawbacks that might be overcome by
preliminary planning. Several writers wanted new
types of bonds, especially small ones. Many asked
that the $5,000 limit be raised 50 that quotas may be
reached more easily by sale of E Bonds during the
next Drive.
While there were again very few complaints about
delays in receiving bonds, there were 20 reports of
overdue interest. The 67 bonds submitted for redemp-
tion through this office represent an average for
recent weeks.
Requests for tax refunds, some of them pathet-
ically urgent, rose sharply. Evidently this is going
to be a sore spot in Treasury relations with the public,
particularly the new taxpayers. There were few addi-
tional requests for simplification of forms, and per-
haps a dozen appeals for reconsideration of deduction
of charitable donations in the proposed Withholding
Act. Occasionally a letter would point out that be-
cause of present rates, the manpower shortage is made
worse inasmuch as workers refuse to put in overtime,
only to have their wage gains nullified by the taxes
that are imposed.
Publicity about the decline in U. S. gold holdings
prompted several inquiries. A number of these letters
were submitted by Senators and Congressmen.
Gabrice Fortush
235
General Comments
Mrs. George V. Linden, Dallas, Texas, wrote to the
President, enclosing a letter from her husband, who is
& Corporal in the Army in Africa. The correspondence
was referred to the Treasury for handling, and the
letter from Corporal Linden reads in part as follows:
If
So the fellows at your office have heard
about the money being made on the exchange of currency.
Yes, some of the boys have made quite 8. nest egg for
themselves by this method. It works this way: The
American value of the franc, for instance, is $.02,
but the franc may be purchased on the black market for
$.01. Accordingly, on the exchange of a black market
franc one would make 100% profit. You can imagine how
much one could accumulate by this method. The biggest
steal though is accomplished on the exchange of Chinese
currency. An American dollar can be exchanged for 120
Chinese dollars on the black market, and these black
market dollars can then be converted back to American
dollars via draft at 40 Chinese dollars for 1 American
dollar, a neat profit of 200%, i.e. 3 for 1. For every
winner there must be a loser, and the loser in these
steals is the U. S. Government, for both the franc and
the Chinese dollar are babies of the U. S. Treasury.
Maybe it is smart like the lads told you, but it does
seem strange for Americans to fight for their country
with their hands and their hearts while kicking her in
the stomach with their feet. Your own husband may be
overconscientious, but after working in the Internal
Revenue for 80 many years, I instinctively yearn to pro-
tect the Government's interest. The War Department,
however, has issued regulations prohibiting a member of
the Armed Forces to use his position for personal gain
via the franc black market route, but as far as I know,
the Chinese swindle racket is still in vogue.
236
- 2 -
Norman Somers, Binghamton, N.Y. I think that you are
doing a tremendous job very well. I know that you
must be very busy steering our country through this
crucial period, but I thought I'd write to you and add
& bit of encouragement. Perhaps you face as many
problems as Alexander Hamilton, and I am sure you will
take care of them as well as he. # # I am 15 years
old and am in the 9th grade. I heard a man on the
radio the other day who told about those filthy counter-
feiters. We have 80 many opportunities in the United
States today, and yet those people have to try to make
money the easy way. They should be out working in war
plants, helping our war effort in 8. nice clean way in-
stead of sneakily turning out ersatz bills. Keep up
the good work, Mr. Morgenthau.
Dr. Herman Sharlit, New York City. My converted war
risk insurance of World War I will become completely
paid up next year. It has occurred to me that our
Government should consider offering holders of such
matured policies annuities on the surrendez of the said
policies. The annuity return, beginning at the age
which insurance practices make feasible, should be
based not alone on the cash surrender value of the
policy, but should include old age and war veteran
benefits which would ultimately accrue to war veterans.
# To the extent to which war veterans may be encouraged
to convert and maintain their policies to maturity,
such a proposal as herein suggested should go a long
way towards automatically solving the veterans' pen-
sion problem. Naturally, should such an offer be put
into effect, those accepting annuities would be ex-
cluded from any veterans' pensions that would ulti-
mately be voted. The adjusted service bonds of World
War I, which reach maturity in June, 1945, also merit
consideration at this time. I trust that simple
machinery will be set up for exchanging those bonds
for some series next year. It is inconceivable that
those of us who overcame the temptation these many
years to cash them, would seek to redeem them next
year. ***
237
- 3 -
Anna Laslo, Washington, D. C. I take the liberty of
approaching you in this rather unusual way, but
I can't think of any other means by which I would be
able to help the cause of the European Refugees,
which cause is the dearest to my heart. I have no
cash on hand which I could offer to aid this most
worthy cause, but I have some 100 dollars in the U. S.
Retirement Fund, which accumulated during my employ-
ment with the U. S. Government from the 18th of June
1942 to the end of August 1943. I would like to contri-
bute this sum toward the fund of the European Refugee
Board. I sincerely hope that I'm not imposing on
you too much when I'm pleading with you to kindly use
your good influence to get that money paid out to you
as soon as possible, and then please use it toward the
fund of the European Refugee Board. I would consider
it & privilege if you would kindly accept this little
contribution from me.
###
Senator Arthur Capper sends the following letter he
has received from Mark D. Mitchell, Independence, Kan.
Henry Taylor has broadcast over the radio the news
that we are printing enormous quantities of money to
take care of military currency, and shipping it to
foreign countries; that gold is being taken out of the
Depository at Fort Knox, Kentucky, and shipped to
foreign countries like China, India and Arabia for the
alleged purpose of stabilizing the currency of these
nations. It seems that these shipments of currency
printed in the United States is a contingent liability
of the Federal Government, and that no systematic entry
has apparently been made covering this liability, and
that it seems to me a thorough investigation of this
procedure on the part of Congress is a necessary thing
in order to protect the stability of our currency here
at home, as well as to protect the War Bonds which we
have bought, and protect the value of our life insurance
policies.
238
- 4 -
Favorable Comments on Bonds
W. C. Rogers, Arkansas Senate, Nashville, Arkansas.
For two or three days in succession, I have heard
the Commercial Bank, of Shreveport, Louisiana, in
their advertising broadcasts, refer to their facil-
ities for assisting those who have been patriotic
enough to buy bonds. I may be mistaken, but this
seems to me to be demoralizing to the legitimate sale
of bonds in that it will give the average a thought
that he can get rid of his bonds any time after sixty
days. I think this fact, though true, should always
be soft-pedaled in selling War Bonds. I believe 8.
note to that bank in your official capacity will be
all that is necessary. My best wishes, Mr. Morgenthau.
You are doing 8. wonderful job and doing it well.
239
- 5 -
Unfavorable Comments on Bonds
J. L. Shepherd, Milan, Missouri.
***A
man and
his wife, who were on Old Age Assistance roll, owned
eighty acres of land without any improvements. Last
May they sold same with the idea of buying 8. small
piece of property 8.8 a home. After paying some debts,
they had around $700 left in the bank. # # * When the
Bond Drive came along, they were prevailed upon to
put this money in War Bonds until such time as they
could buy a home. They did not do this until they
consulted the cashier of the bank, who was County
Chairman of the Bond Drive, as to whether they could
get the money back when needed, as it takes a little
time, as you know, to cash these bonds. He informed
them that he would take care of them as soon as they
bought property, without having to wait to cash the
bonds. They then bought bonds with this money amount-
ing to $625. Then along comes the investigator of the
O.A.A. and suspends them from Old Age Assistance because
they have these bonds; in other words, penalizing them
for letting the Government have the use of their money
until such time as they could find a home to buy.
I have talked with the cashier of the bank (who has
been very active in the Bond Drives) and he agrees that
if this action is not challenged, it is going to hurt
the bond effort in this County, and if it is the policy
of the O.A.A. Commission of Missouri, it will hurt the
State Bond effort. Looks like a case of bond sabotage,
pure and simple.
James V. B. Post, West Orange, N. J. # Evidently
the Treasury Department in Washington, and others, have
not been informed of this paper shortage as we have just
been the recipient of a citation from the Treasury for
services rendered on behalf of the last War Loan Drive.
Most of the people I have spoken to, who assisted in
the last Drive, felt it their duty to assist in whatever
Regraded Unclassified
240
- 6 -
manner they could, but they did not expect to receive
any citations for doing this work. The one I received
is only one of millions sent out from Washington, and
I have seen other citations four or five times bigger
than this one, which have been given, as near as
I can make out, to practically anyone working in a
war plant. Besides using critical paper, I know very
well that it took at least the services of several
hundred people, or more, to design and print these
citations, plus the thousands of stenographers re-
quired to address the envelopes. The cost of doing
all this work just at a. time when the country cer-
tainly should be economizing as much as possible,
runs up to a mere one hundred million dollars or more.
We feel that this is all 80 unnecessary with the short-
age of manpower and everything else. ***
E. J. Connor, Connor Company - - Wholesale Plumbing and
Heating Supplies, Peoria, Illinois. The writer has
been offered and his services have been accepted to
do more or less 100% work for a few months in connec-
tion with the next bond campaign. # In discussing
the failure of many Illinois rural counties to come
even close to their quotas, 8. banker told me these
facts. Farmers are not using the banks either in de-
positing their receipts and transactions. Neither are
they using safety deposit boxes. All of their deals
are now selling for cash, and paying the same way.
They don't put the money in the bank, as thereby they
have records, and income tax auditors cannot check
them, and they want to forget and have no records.
*** They don't want to and don't do their share of
bond buying. #** Labor and business pay their share
of taxes and buy bonds, because they can't do other-
wise, perhaps, but results are the same. I know the
farmers - my business is indirectly with them. Also
own some farms. Farmers are exceedingly prosperous and
should do their share, but are not. # * But farmers
should be scared, that would be much better selling
argument than logic or patriotism.
241
- 7 -
Robert E. Ausenbaugh, Evansville, Ind. There is a
problem existing at the Evansville shipyard - contrac-
tors Missouri Valley Bridge and Iron Company - con-
cerning the payroll bond deductions. It has been bad
all along, and is growing worse all the time. Employees
have from 4 to 5 bonds due them all the time before
they receive perhaps 1 in 1 month. The thing is
getting worse, and if not corrected, the employees
are going to stop the payroll plan. As for myself,
I am sure we will get the bonds due us, sometime, and
would buy all the bonds I can afford anyway. But lots
of employees, less interested in bond buying than I am,
are almost ready to quit on this account, and lots of
them would not buy bonds otherwise. ***
242
- 8 -
Unfavorable Comments on Taxation
G. E. Avery, Wethersfield, Conn. In December 1942
I bought & few United States Treasury Notes, Tax
Series A, for the purpose of paying future income
tax obligations to the Government. Since then, the
withholding tax law has been passed, and I cannot
use the two that I have left for such purpose, as
the balance of my tax due each year is less than the
face value of the notes. Will you advise me as to
what to do with these notes, and if presented for
redemption will I lose the accrued interest, and thus
be penalized for trying to cooperate with the Govern-
ment? This same letter was sent to the local Collec-
tor of Internal Revenue on February 7th, to which
I have had no reply.
Louis L. Baere, Peerless Fibre Company, Cohoes, N.Y.
The currently existing high tax rates are having a
strange repercussion on the manpower situation in
our country today. Due to the rates, a good many of
the working people feel that taxes take the bulk of
their overtime wage from them 80 that, as a result,
numbers of men and women alike have refused to work
additional hours. This situation has held true in
my own plant here and also prevails in 8. good many
plants throughout the country, according to my con-
versations with other mill owners. It has occurred
to the writer that the Treasury Department should
endeavor, both in the interests of realizing greater
taxes and at the same time promoting maximum use of
our manpower, to put out some publicity in order to
ameliorate this situation. ***
A. E. Hotson, Shreveport, La. On my attempting to
file Form 1040-ES with the local office of the Bureau
of Internal Revenue, Shreveport, La., as required,
I was refused & receipt in any form. In view of the
ease with which slips of paper can be mislaid, wrongly
Regraded Unclassified
243
- 9 -
filed or destroyed, I believe my request was
reasonable, and that no honest person, whether
Federal employee or otherwise, would or should re-
fuse a receipt when cash or important papers are
tendered. Kindly advise if instructions covering
issuance of receipts have or will be issued from
your office.
Palmer Conger, Philadelphia, Pa. Will you please
give me the information about my returned tax money
which the Government owes me? For I have overpaid
my taxes for 1943, the amount is $69.21 which I was
told in February 1944 that the Government would give
me this money back in a month or six weeks. I have
not received this money yet and I would like to know
when I will get it. I need this money now to help
pay my rent, and to carry me till I get a payday.
I would be very grateful if you can send me the
$69.21 as soon as you can. Thanking you kindly.
Copy of letter written by Ray Alvis, McAllen, Texas,
to Frank Scofield, Collector of Internal Revenue,
Austin, Texas. I have your letter of March 20th say-
ing that you had received my protest dated January
25th, but that I should have sent it to Dallas. Now
on April 7th you sign a letter saying that I failed
to file a protest. The cheapest and easiest thing
that I can do is to pay you your $28.00 that I do not
owe you, and at least be rid of you for the moment.
It is the principal of extortion involved. Being
dogged to exasperation. I spent a great deal of time
with your field investigator. Offered to furnish
proof of any entries that he might question. When
he was making out his so-called "exhibit", I insisted
that he was duplicating figures and that it was in-
correct. He didn't want the facts though - he just
wanted to make all the trouble that he could. You
suggest that I go to the Tax Court in Washington.
If gas is available later in the year, I will most
Regraded Unclassified
244
- 10 -
certainly do it. Travelling conditions are too diffi-
cult now. I would like to see my Senator, Congressman
and Mr. Morgenthau in person. Go ahead and carry
your illegal and dishonest claim to court. I flatly
refuse to pay you more than the law requires. If
I have to, I would prefer to spend the rest of my
time in Alcatraz than be hounded to death.
Alex Rexion, Department of Cooperative Work, Fenn
College, Cleveland, Ohio. On the income tax documents
that we citizens must file we are continually reminded
that we shall be penalized unless we do this or that
on time, and in other ways dictated to by the Govern-
ment. All of that is, I suppose, as it should be.
But would it not be good if the Government itself
practiced what it preaches? For instance, I overpaid
my income tax last year, and requested that the Govern-
ment refund me the sum I paid beyond that which was
required by the Government. Nearly 40 days have
passed since I filed my annual return, and as yet
I have not received the money I have coming. I have
more than $100 coming, and this would serve me well
now instead of later in the year. The rumor is going
the rounds that it is foolish for us to expect any
refund from the Government. How true is this rumor?
M. E. Peterson, Principal, Winnetka School, Canoga Park,
California. Again I must protest at the excessive
taxation on my salary. This time the particular pro-
test is because I have been forced to pay far in excess
of my actual tax. On my last return, March 15th, the
Government owed me $96.00 which I have been promised
as a refund. However, over the radio 8. few nights ago
We were told that such refunds might not come to us
for 8. year because "The Government simply hasn't got
it". In making up my tax estimate I find that the
Government, according to the present rate of with-
holding, will owe me $76.00; and that is before any
deductions for contributions, taxes, interest, and
245
- 11 -
80 on, are made. The amount will probably be over
$100.00. Have you any reasonable explanation for the
inability of your office to figure closer than this?
We "white collar" people are literally beaten into
the dust. *** The critical feeling which I have with
reference to excessive taxation, and the fact that re-
funds are not forthcoming, is shared generally by the
many millions of "white collar" wage-earners in the
United States. ***
Emile Ramel, Brooklyn, New York. About three months
ago I filed my income tax return with the office at
Hoyt and Schermerhorn Streets 80 as to give that
office a chance or plenty of time to check same before
the week of the March 15th rush. I overpaid $28.85,
based on my weekly salary, and asked for 8. refund, as
I will be again overpaid for 1944, based on the 20%
deduction at the source. Have heard nothing from them
and could not get any information of a satisfactory
nature in answer to my letter. Could your office do
anything to expedite matters?
246
POBLYCTORY
TREASURY DEPARTMENT
BUY
VISITED
STATES
WAR
bonds
PROCUREMENT DIVISION
STAMPS
WASHINGTON 25
OF THE DIRECTOR
April 21, 1944
MEMORANDUM TO THE SECRETARY:
M
Sale of corrugated sheet steel, originally purchased
for Lend-Lease, has just been completed. 3,172,000 pounds
of steel were involved in this sale, and the price secured
was $118,003.00.
There were no other unusual activities today which
seem to merit inclusion in this memorandum. Some study was
devoted to the proposed Office of Price Administration Sup-
plementary Order governing sales by Government agencies.
Our general opinion is that the proposed regulations are
much more complex than is necessary.
Clifson E. Mack
Director of Procurement
Regraded
247
TREASURY DEPARTMENT
&
INTER OFFICE COMMUNICATION
DATE April 21, 1944
TO
Secretary Morgenthau
FROM Mr. White HDW
1. Stabilization Fund's Gold Transactions
During the three months ending March 31, 1944, the
Stabilization Fund sold approximately $359.7 million in gold
to foreign countries principally to be earmarked for their
accounts with the Federal Reserve Bank of New York. Sales
by countries were as follows:
Country
Sales in millions of dollars
Afghanistan
5.985
Argentina
64.837
Bolivia
.499
Chile
5.096
Colombia
15.050
Cuba
14.999
Guatemala
5.075
Haiti
.500
Iran
4.000
Paraguay
.500
Peru
1.995
Portugal
19.950
Salvador
2.063
Switzerland
19.951
Turkey
29.925
United Kingdom
150.288
Uruguay
7.482
Vatican City
.499
Venezuela
10.969
Total
359.663
During the same period, the Stabilization Fund sold
$15.7 million in gold to acquire local currency in India and
248
- 2 -
the Middle East for the purpose of financing United States
war expenditures. Sales by countries were as follows:
Country
Millions of dollars
India
11.572
Iran
2.007
Egypt
2.079
Total
15.658
The Fund purchased approximately $5.0 million in gold
from the earmarked account of the Royal Netherlands Govern-
ment.
In order to maintain its gold balance, it also purchased
$341.5 million of gold from the Treasury General Fund.
As & result of the above transactions there was a net
decrease of approximately $28.7 million in the Stabilization
Fund's gold holdings to about $14.3 million as of March 31.
2. Treasury Gold Stock
During this quarter, the Treasury's gold stock decreased
$337.7 million from $21,937.5 million to $21,599.8 million
as of March 31. Known and estimated amounts of sales and
acquisitions were as follows:
- 3 -
Sales
Millions of dollars
Sold to the Stabilization Fund
341.5
Sold to industry
7.0
Miscellaneous
5.1
Total
353.6
Acquisitions
Newly-mined domestic
3.4
Imports sold directly to mints
and assay offices
11.1
Miscellaneous (coin and scrap)
1.4
Total
15.9
Net decrease in the Treasury gold stock
$337.7
3. Total Gold Holdings of the United States
December 31, 1943
March 31, 1944
Treasury Gold Stock
$21,937,509,984
$21,599,752,837
Stabilization Fund Gold
42,907,236
14,277,104
Total
$21,980,417,220
$21,614,029,941
The decrease in the gold holdings of the Treasury and the
Stabilization Fund during this quarter was $366.4 million.
Regraded Unclassified
TREASURY DEPARTMENT
249
INTER OFFICE COMMUNICATION
AAK
DATE April 21,1944
TO
Secretary Morgenthau
FROM
Mr. White HDW
Subject: Lend-Lease Exports to Russia
1. In February, 1944, United States lend-lease exports
to Russia totalled approximately $200 million as compared
with about $285 million in January, 1944.
2. Among the principal non-military items were:
Motor trucks (all sizes) ($13 million)
Wool cloth and dress goods ($10 million)
Dried eggs ($7 million)
Lard ($3 million)
Canned meat, ex. chicken ($3 million)
Wheat flour ($3 million)
3. Among the munitions sent were:
159 P-39 pursuit fighters
20 P-40 pursuit fighters
215 light and medium tanks
90 50 cal. aircraft machine guns
50 50 cal. anti-aircraft machine guns
192 40 mm. anti-aircraft guns
18 3 in. 50 cal. naval anti-aircraft guns
12 5 in. 38 cal. naval anti-aircraft guns
2,077 scout cars
1,122 motorcycles
273 railway freight cars
4. Shipments to Eastern Russia, presumably on Russian boats
via for about $38 million of the total of approximately $200
Vladivostok or some other Siberian port, accounted
million exported during the month under review.
250
TREASURY DEPARTMENT
OFFICE OF THE SECRETARY
April 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 April 12, 1944, showing dollar disbursements
out of the British Expire and French accounts at
the Federal Reserve Bank of Now York and the means by
which these expenditures were financed.
EMB
Poaraded
251
FEDERAL RESERVE BANK
OF NEW YORK
April 20, 1944.
CONFIDENTIAL
Dear Mr. Secretary: Attention: Mr. H. D. White
I am enclosing our compilation for the week ended
April 12, 1944, showing dollar disbursements out of the
British Empire and French accounts at this bank and the
means by which these expenditures were financed.
Very truly yours,
1st H. L. Sanford,
H. L. Sanford,
Assistant Vice President.
The Honorable Henry Morgenthau, Jr.,
Secretary of the Treasury,
Washington 25, D.C.
Enclosures
COPY
Regraded Unclassified
ANALYSIS 07 DRITISH AND FRENCH ACCOUNTS
Strictly
(In Hillions of Dollars)
Week Ended April 12, 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
Credits
in & Punds
Debits
Credits
in D Funds
Total
tyres
Canadian
Other
Total
(Official)
Australian
Debite
(a)
Account
Debits
Credits
Gold
(b)
Account
(c)
(d)
(e)
(e)
(d)
First year of may (a)
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
War period through
108,0
14.5
561,1
+ 10,8
878.3
1,098.4
- 220,1
December, 1940
2,782.3
1,425.6
20.9
1,335.8
2,793,1
2,109,5
Second year of war(h)
2,203.0
1,792.2
344
407.4
2,189,6
1,193.7
274.0
16.7
705.4
- 13,2
38.9
8.8
- 30.1
Third year of way (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 mgr(1)
766.0
1,0
- 9,3
312.7
170.4
280.9
1,072.3
-
0,5
155.1
916.7
+ 308,3
10.3
1943
September
49.4
16.8
10.6
22.0
86.2
-
-
15,0
71.2
+ 36,8
-
-
-
38,2
16.0
22,2
115,4
40.5
+ 77.2
-
-
74.9
-
October
-
-
-
November
65.9
12.4
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
126,5
+ C2,7
.
1,0
-
January
44.6
22,2
10.6
12,0
127.5
-
-
-
February
-
29.0
+ 0.7
1
-
143.8
14.3
2,1
127.4
144.5
115.5
-
-
March
152.9
71.1
12.5
69.3
133-3
24.5
108.8
- 19.6
1
1
-
-
-
April
May
July
August
Week Zaded
March 22, 1944
6.7
1,0
-
29.8
29.8
+ 23.1
-
-
5-1
-
-
-
-
-
12.8
6,8
6.0
-
-
+ 30.7
-
March 29, 1944
-
43.5
-
43.5
-
- 58.1
-
-
April <. 1944
15.0
94
8.4
51.2
16.9
-
-
6.5
10.4
-
1
57.3(2)
3,5
-
53.8(1)
26,7(k)
-
-
10,0
16.7(k)
- 30.6
-
-
-
See attached sheet for Tootnotes.
England
Jule 19, 1940) $27.6 million
England
through June 20, 1940 to Hareb 12, 1941) 054.9 million
England Maunets 12, 1941) 811.2
million
Regraded Unclassified
(a) Includes payments for doccunt of British Ministry of Supply Mission, British Supply Board, Ministry of Supply Tumber
Control, end 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 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) Reflects net change in all dollar holdings payable on demand or maturing in one year.
(e) For breakdown by types of debits and credits see tabulations prior to March 10, 1943.
(f) Adjusted to eliminate the effect of $20 million paid out on June 26, 1940 and returned the following day.
(g) For monthly breakdown see tabulations prior to April 23, 1941.
(h) For monthly breakdown see tabulations prior to October B, 1941.
(1) For monthly breakdown see tabulations prior to October 14, 1942.
()) Voc conthly breakdown see tabulations prior to September 29, 1943.
Includes $ 4.5
million apparently representing current and acou ulated dollar proceeds oi starling area services and
{roundine exportsa and #1-3 million in connection with the expenses of our armed forces abroad.
(:) or shieb $50.1 million represents cost of gold purchased for export.
Regraded Unclassifie
Regraded
48413878 OF CANADIAN AND AUSTRALIAN ACCOUNTS
(In Willions of Dollars)
Yesk Ended April 12. 1944
Confidential
COMM
BANK
OF
Tylesfers from Official
Transfers
to
Net Incr.
to
Brittich s/c
official
of
(+) or
Official
Total
Britin
Total
Gold
For Own
For French
Other
Decr, (-)
Total
British
Other
Total
Gold
other
PERIOD
A/C
A/C
Credits
in $Rands(s)
Debits
A/C
Debits
Credits
Sales
Credits
in Rinds (e)
A/C
Credits
Sales
First year. of me n
323.0
16.6
306.4
504.7
412.7
20,9
36,7
32,4
181,7
31,2
3.9
27.3
36.1
30,0
6,1
+ 4.9
for period through
geshber, 1940
4772
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
16.7
55.5
81.2
62.9
18.3
+ 9.0
agord year of war(b)
450.4
-
410.4
462.0
246,2
3.4
123.9
88.5
+ 1.6
72.2
Whird year of 0
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
Fearth year of
723.6
723.6
958.8
47.1
170.4
-
741.3
235,2
197.0
155.1
41.9
200,4
-
200.4
+ 3.4
-
N
1943
September
672
47.2
70.1
-
10.6
-
59.5
+ 22.9
16.8
15.0
1,8
20.0
-
20.0
+ 3.2
-
abober
:
-
32.1
71.3
-
-
-
71.3
+ 39.2
42.8
40.5
2.3
26.5
-
26.5
- 16.3
15.4
0,1
15.3
95.1
-
5.9
-
89.2
+ 79.7
6.6
3.5
3.1
18.2
-
18,2
+ 11.6
0.3
166.5
35.1
-
-
-
55.1
- 91.7
39.7
36.5
3.2
27.0
-
27.0
- 12.7
1944
January
323
-
32.3
78.5
-
10,6
-
67.9
+ 46.2
6.0
1,0
5.0
11.)
1
11.3
+ 5.3
Embruary
25.4
26,6
1
25.4
118.5
23,1
2,1
-
93.3
+ 93.1
31.3
29.0
2,3
-
28,6
- 2,7
March
30.3
0.5
29.8
88.6
15.0
12.5
-
61.1
+ 58.3
27.6
24.5
3,1
29.9
-
29.9
+ 23
Anril
L.
July
Amount
Teak Endad
March 22, 1544
509
0.5
5,41
10.6
#
-
-
10,6
+ 4,7
-
-
-
0.9
-
0.9
+ 0.9
March 29, 1944
12.8
-
12,8
4.1
-
-
-
41
- B.T
0.5
-
0.5
5.6
-
5.6
+ 5.1
April 1944
172.6
-
172.6
39.5
E
8.4
-
31+1
- 133.1
8.0
6-5
1.5
10+3
-
10+3
a. 2-3
April 12, 1944
2:9(1)
-
2.9
(2.9(f)
-
-
-
AIC
5.0
10.0
10.0
-
5.3(a)
-
5.3(b)
4.7
Average Weekly axpenditures 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 to October 14, 1942.
Third year of mar
10.1 million.
(d) For monthly breakdown see tabulations prior to September 29, 1943.
Fourth year of was
13.9 million.
(e) Reflects changes in all dollar holdings payable on demand or maturing in one year.
Fifth year of war (through April 12, 1944)
15.6 million.
(f) Does not reflect transactions in short term U. S, securities,
(g) Includes $ 3.6
million deposited by War Supplies, Ltd.
and $ 4.0
million received from New York account' of Canadian Chartered Bank.
(b) Includes $5.0 million in connection with the expenses of our armed forces abroad.
255
EXECUTIVE OFFICE OF THE PRESIDENT
WAR REFUGEE BOARD
1AA
INTER-OFFICE COMMUNICATION
DAMAPRIL 21,1944
TO
Secretary Morgenthau
FROM
J. W. Pehle
When and if you have time you may be interested
in reading the attached excerpt from the debate in the
House of Commons on the Inter-Governmental Committee.
got
1457
Supply: Committes
HOUSE OF COMMONS
Diplomatic, etc., Services 1458
[Mr. McCorquodale,
As regards the actual work, I think
means of establishing their rights if it is
the arrangement is really much the same
casonable and practicable. The Bill also
as we have often had in the past in the
brings in many hundreds of thousands of
Foreign Office. We have often had three
ounteers who were previously left but.
persons, the Secretary of State and two
For that. reason alone, it für no other, the
Under-Secretaries, or perhaps the Secre-
Bill will be justified. It is an integral
tary of State and the Chancellor of the
part, if only a part, of the Government's
Duchy, or some other Minister holding
great scheme for resett) ment after the
an office which does not entail work on
war, and for that reason I commend it
its own account, in order to assist our
warmly to the House.
deliberations. Generally, my right hon.
Question pute and agreed to.
Friend will also interest himself in the
economic side of our work, as he has been
Bill accordingly read the Third time,
doing, and the knowledge which he has
and passed.
gained at a number of conferences will
be invaluable to us.
SUPPLY
Question put, and agreed to.
Considered in Committee.
CLASS Il
[Mr. CHARLES WILLIAMS in the Chair]
DIPLOMATIC AND- CONSULAR SERVICES
CIVIL ESTIMATES, SUPPLEMENTARY
Motion made, and Question proposed,
ESTIMATE. 1943
That a Supplementary sum, not exceeding
CLASS 11
153.873. be granted to His Majesty. to delray
FOREIGN OFFICE
the charge which will come in course of pay-
ment during the year ending on the 31st day
Motion made, and Question proposed,
of March, 1944. for the expenses in connec-
tion with His Majesty's Embassies, Missions
" That a Supplementary sum, not exceeding
and Consular Establishments Abroad, and
61,525 be granted to His Majesty, to defray
other expenditure chargeable to the Consular
the charge which will curris in course of pay-
Vote: certain special grants and payments,
ment during the year ending un the just day
including grants-it-aid: and sundry other
of March, 1944 for the silaries and expenses
services.
of the Department of His Majesty's Secretary
State fur Fureign Affairs and the salary of
Mr. Granville (Suffolk, Eye): 1 gather
Minister of State."
that we are now considering the Votes
Mr. Munder (Wolverhanipton, East): I
in connection with the Inter-Govern-
hope that we may have some explanation
mental Committee of refugees and relief
of the precise duties which the Minister of
of prisoners of war and contributions for
State will perform. It would be interest-
the funds of the International Red Cross.
ing il the Foreign Secretary could let us
know how it is proposed to allocate his
The Deputy-Chairman: Yes, that is so.
duties between this country and abroad.
Mr. Granville: The Paper says that the
I am desighted that the appointment has
additional provision required is a con-
been made. I cannot think of anything
tribution towards the funds of the Inter-
more satisfactory for the foreign affairs
national Red Cross Society
of this country than that my two right
in resognition of the work of the society
hon, Friends should be associated together
in the relief nf prisoners of war."
in their conduct. 1 hope that my support
will not be loo damaging to them. I think
It goes on to say:
that the sum of £1,525 which it is pro-
The expenditure out of this grant-in-ald
will not be accounted for in detail to the
posed to spend on my right hon. Friend
Comptroller and Auditor General.
is money which will be very well spent.
I quite understand that, but I thought we
The Secretary of State for Foreign
might have been told a little more about it.
Affairs (Mr. Eden): It is intended that my
right hon. Friend should assist me in the
The Minister of State (Mr. Richard Law):
general conduct of foreign policy under
I must apologise to the Committee, and in
the guidance of the War Cabinet. 1 need
particular to the hon. Member who has
hardly say that I warmly welcome his
just spoken, and who has very kindly
assistance. I have no doubt that I shall
given way to me. I was not quile quick
stand in need of it, and of any other help
enough off the mark, but I hope I shall be
I can find, in future as our problems get
able to give him satisfaction on the very
heavier, as I have no doubt they will.
important matter that we are discussing.
Regraded Unclassified
1459
Supply: Committee-
1 MARCH 1944
Diplomatic, etc., Services 1460
I do not think that it will be necessary
£50,000. I think hon. Members will have
to give any very long or detailed explana-
seen from the Estimate that that is only
tion of the first sub-head of the Supple-
by way of instalment. On another
mentary Estimate, which is the grant-in-
occasion we shall be asking the Com-
aid for the relief of prisoners of war, in
mittee to underwrite our proportionate
the form of a further contribution towards
share of what we think may be the
the Funds of the International Red Cross.
expenses of the Inter-governmental Com-
The Committee has always supported
mittee in the coming year. That figure
right through the war the efforts which
is £1,000,000, a provisional figure, and
the International Red Cross have made to
we have undertaken to underwrite
improve the lot of prisoners of war and
£500,000 and the United States have
1 do not suppose for a moment that the
undertaken to underwrite the other
Committee would wish to withhold any
£500,000.
further support that they could give to
The difference between what we were
the International Red Cross.
asking in 1939 and 1940 for the Inter-
The additional sum required under the
governmental Committee and what we are
Supplementary Estimate is not a big
asking now is an indication of the great
one, £3,873. The purpose of it is to enable
growth there has been in this hideous
the International Red Cross to maintain
problem of refugees. The comparison
a sub-office in Shanghai, where they hope,
between £2,000 and (50,000-or, indeed,
and we hope, they will be able to be of
{500,000-is not out of place as a com-
some service to the very large number of
parison of the growth in the horror and
British civilians who are interned in
complexity of the problem. It is a
Shanghai, and of course, to help too, I
measure of the determination and serious-
hope, the very much smaller number of
ness of purpose with which His Majesty's
British prisoners of war who are there.
Government and the Government's repre-
We are quite satisfied that the Inter-
sented on the Inter-governmental Com-
national Red Cross is doing as much as
mittee are tackling the refugee problem.
possibly can be done for our prisoners of
It may be for the convenience of the
war and our fellow countrymen and
Committee if I give a brief review of the
women who are interned in the Far East.
events which led to the reconstitution of
The fact that it cannot do more is in no
the Inter-governmental Committee. The
way due to any lack of good will or of
refugee problem was, unfortunately,
knowledge and effort on the part of the
already of monstrous proportions before
International Red Cross. It is simply, из
the war, and it is difficult to realise now
I am afraid we all know, due to the atti-
that, even before the war, when civilised
tude of the Japanese authorities. I have
Governments like the Government of this
DO doubt that the Committee will approve
country. and others, were in relation with
this grant-in-aid and I will, if I may, pass
the German Government, something like
on to the second sub-head, the grant-in-aid
400,000 human beings were being driven
for the Intergovernmental Committee on
like cattle across the borders of Germany
refugers. Here I think it would probably
and were either expelled, or had to take
be for the convenience of the Committee
refuge in other lands, to avoid a worse
LE I dealt with this matter fairly fully,
fate. It was to meet this appalling situa-
because it is some time since we had 1
tion that developed even before the war
Debate on this tremendously important
that the President of the United States
subject.
took the initiative in summoning a con-
This in not the first time that - have
ference at Evian in 1938. Out of that
but to come to the House to ask for pro-
conference grew the Inter-governmental
take for- the Inter-Governmental Com-
Committee on Refugees.
milk on Refugees, but we have never
The primary function of the Inter-
-
NO the House for provision on this
governmental Committee in those days
scale,
or indeed, anything like it. In
was to negotiate with the German Govern-
the Committee was asked to provide
ment 60 that the lot of those unhappy
Dissa
and in 1940 and 1945 provision
people might be improved and their escape
W made on the saide sort of scale. Since
from Germany facilitated: in short, to
Co. for be born DO vote for the Inter-
that the cruelty of the German authorities
governiciental Committee. Now I em ask-
and the German people might, in some
W 150 Committee, not for (6,000 but for
degree, be mitigated. I think it is a. fact
Regraded Unclassified
1461
Supply: Committee- HOUSE OF COMMONS Diplomatic, etc., Services 146z
[Mr. Law.]
the United States, the Netherlands,
that, before the war, the Inter-govern-
Brazil, the French National Committee of
mental Committee was able to do a great
Liberation and Argentina. 1 would like
deal in mitigation. It co-ordinated the
to take this opportunity of saying how
activities of the various voluntary societies
much His Majesty's Government appres
and carried out an examination into the
ciate the fact that the Inter-governumental
prospects of finding other homes for those
Committee is still able to call upon the
unhappy people in various parts of the
experience of my Noble Friend the Mem-
world. On the outbreak of war, all that
ber for Horsham and Worthing in matters
work had to cease. There was another
concerning refugees, and upon his wide
meeting of the executive of the Inter-
sympathy and deep interest in regard to
governmental Committee in Washington in
this matter. I would like at the same
October, 1939, but, for the next two or
time to pay a tribute to the other repre-
three years after that, it never met again.
sentatives of other Governments who are
There was, indeed, no scope or work that
serving on the Inter-governmental Com-
could usefully be done.
mittee at the present time, Other
The work of the Inter-governmental
Governments are represented by their
Committee seemed to come to an end
Ambassadors, It is a remarkable thing
when the war broke out, but, of course,
that these men, busy and over-burdened
the problem remained. With every day
as they are, have been able to devote SO
that passed, the refugee problem increased
much time to this hideons problem of
in size, difficulty and horror, until it is
refugees. And it is very much to the
calculated now that, when the war in
general advantage that they have been
Europe comes to an end, there will be
able to give that time, because it is an
something like 20,000,000 human beings
indication to the world as a whole of the
who have been uprooted from their homes
importance which is attached to a solu-
in Europe, A figure like that is so big
tion of it by the respective Governments.
that it is almost meaningless. It is liter-
Mr. Lipson (Cheltenham); Does the
ally true that the human imagination
right hon. Gentleman's reference to the
cannot comprehend the full extent of
amount of time these members have given
human misery contained in a figure of
mean that this Committee has met fre-
that magnitude. It very soon became
quently since the Bermuda Conference?
clear, as the war progressed and as the
refugee problem became more acute, that
Mr. Law: It has met several times since
there was a problem which could be
the Bermuda Conference. 1 know from
tackled with hope of success only upon
my own experience that all the members
the international plane. Accordingly, as
of it take a most keen and deep interest
hon. Members are aware, representatives
in the problem. The Bermuda Conference
of His Majesty's Government and the
recommended that the Inter-governmental
Government of the United States met
Committee should be revived, that its
some months ago at Bermuda, and went
membership should be extended and that
exhaustively into the whole refugee
its Mandate should also be extended. In
problem.
accordance with that recommendation
the Executive of the Inter-governmental
One of the recommendations which the
Committee issued invitations to a number
Bermuda conference made was that there
of other Governments who had not pre-
should be instituted at once international
viously been associated with the work to
machinery to deal with the problem, and.
join the Committee, and 1 understand
as the Inter-governmental Committee still
that replies have already been received,
existed-though it had not been active
affirmative replies, from Czechoslovakia,
for some time-it was thought to be the
Egypt, India, Luxemburg, Poland, the
most salisfactory form of international
Union of South Africa and the Soviet
machinery. Accordingly, in, I think,
Union.
August last, the Executive of the Inter-
governmental Committee met under the
But it was necessary not only to
chairmanship of my right hon. Friend the
expand the membership. It was neces-
Member for Horsham and Worthing (Earl
sary also to alter its Mandate, As I said
Winterton). The executive consists, as
earlier the original function of the Inter-
the Committee are probably aware, of
governmental Committee was, in the
representatives of the United Kingdom,
main, to negotiate with the German
Regraded Unclassified
259
Supply:
Committee
PORK
1
Services
144
authorities. Clearly that W/J BO longer
mental Committee. With . this 16
possible at the time when the Inter-
that, there 50, I die service the Committee,
governmental Committee was revived. It
every property that the executive
was limited under its original Mandate
machinery of the Inter governmental
to dealing with refugees from Germany,
Committee on refugoes will be built
Austria, and Inter on the Sudetenland,
into as effective a piece of machinery 1
Clearly, that again was inappropriate. Its
conditions permit. It in being stordily
scope had to be much wider than that,
beik up sow, I hope very much that
Perhaps the most important change that
the Committee will not press DIA to &
has been made in the Mandafe of the
into details of the work of the Inter
Inter-governmental Committee is this:
governmental Committee. This refuges
under its original Mandate the Inter-
problem is one of those in which the
governmental Committee had no finan-
more one talks about what 5 being done
cial responsibility of any kind for the
the less chance there is of achieving any-
maintenance of refugees. Clearly if that
thing, I think the Committee realises
provision was maintained it could not
that fully as well as I do bet I would
do any effective work whatever, 50 the
just like to say this about what has been
Mandate was revised, so that there now
done.
comes within the purview of the Com-
The Vice-Director,- Malin, is on a
mittee refugees from the whole of Europe,
visit to North Africa and Italy, where he
and it was revised further so that the
has been seeing conditions on the spot.
Committee can spend money upon the
The honorary Assistant Director, Doctor
maintenance, the transfer and preserva-
Kullmann, has just returned from a visit
tion of refugees. In other words, in the
to Switzerland, where he has been going
new reincamation, the Inter-governmental
into the whole question of refugees. It is,
Committee has changed from being
I understand, the intention of the Execu-
in the main a piece of co-ordinating
tive Committee to have permanent repre-
machinery into an executive office which
septatives in those centres which are
will be able, of its own initiative, to
mainly concerned with the refugee prob-
undertake tasks in connection with the
lem. I can assure the Commitee that the
safety of refugees.
Inter-governmental Committee is making
I think the Committee is aware that
every possible effort to forward the work
Sir Herbert Emerson, the League of
of resoue that is consistent with the effet-
Nations High Commissioner for Refugees,
tive prosecution of the war.
has for some time been the Director of
1 would like to say just a word about
the Inter-governmental Committee.
I
the actual financial arrangements. The
think it must be a matter for great con-
administrative expenses of the Inter-
gratulation that be has been confirmed
governmental Committee are being
in his appointment as Director of the
Executive Committee. Sir Herbert
covered by a percentage contribution by
all the member Governments. Our per-
Emerson, of course, continues to be
centage is 12 per cent. and it is calcu-
League of Nations High Commissioner.
lated that that will amount to £4,000
It is very valuable that the two bodies
in the following year; It does not
which are dealing with refugee problems
should have a link between them in the
actually appear in this Vote because the
Executive have enough funds to carry on
person of the Director. I suppose there
until the end of March, but next year the
is no one in this country, or indeed in
Committee will be asked to make pro-
the world, who has so wide a knowledge
vision for something in the nature of
of this problem as Sir Herbert Emerson. I
am sure too that there is no one whose
£4,000 for administrative expenses. The
heart is more deeply in it.
operating expenses are another matter,
They are likely to be very considerable.
Sir Herbert Emerson is the Director.
Indeed, we must all of as hope that they
Under this new organisation an American
will be considerable because the greater
citizen, Mr. Patrick Malin, who has had-
the expenditure on operations the more
great experience of welfare work is Vice-
chance there is of our being able to do
director, and Doctor Sillem of the Nether-
something practical for the relief and
lands is Secretary-General. # In addition,
resctie of the oppressed peoples of Europe.
Doctor Kullmann the Deputy League of
Nations High Commissioner, is Honorary
As I said earlier it has been calculated
Assistant Director of the Inter-govern-
that operating expenses will amount to
1405
Supply:
Committee- HOUSE OF COMMONS Diplomatic, itc., Services 1466
(Mr. Law]
refer to prisoners of war under the head-
.000,000 in the coming 12 months, The
ing BB, which is:
lited States Government and ourselves
have agreed to underwrite that
Relief of prisoners of war; contribution
towards the funds of the International Red
(1,000,000. It Was necessary, I think,
Cruse (Grant in Aid)."
to take that action because we could not
I understand from the right hon. Gentle-
afford delay, and we could not afford a
man that the sum which is being voted és
long period in which neither the Com-
£3.873. As be says, of course, the Com-
mittee nor the Director knew where they
mittee will not grudge the Government this
stood, bit I should make it clear to the
item. I am sorry it is 50 small. 1 under-
Committee that the other member Gov-
stood from the Minister for State that it is
enunents are being asked to contribute to
our contribution towards the setting up
the fullest extent to these operating
of an office in the Far East by the Inter-
expanses. I have no doubt that they will
national Red Cross Society. I was rather
wish to share in this very important
sorry that the right hon. Gentleman did
humanitarian work. Therefore, we may
not tell us a little more about this because
expect that through we are underwriting
we have all a considerable number of con-
£500,000 we shall not be called on, in
stituents who are extremely anxious after
the event, to supply anything like that
the statement which was made in the
amount However that may be 1 am
House by the Foreign Secretary with
quite sure that the Committee would not
regard to what is happening to our
wish the Inter-governmental Committee
prisoners in the Far East, and the atro-
00 refugees to be under any disability at
cities that have been committed by the
all through lack of finance,
Japanese, Although I understand that
there is a great deal of anxiety and tre-
There is just one more thing which
mendous interest in this problem of the
perhaps I ought to add. As I have said
international refugees I am sorry that the
the Executive Committee has met several
right hon, Gentleman did not take a little
times and, of course, il is the Executive
more time in his speech to tell us what
Committee which directs and supervises
if is hoped to achieve by the setting up
the work of the whole organisation, but
of this office by the International Red
it may well be that the time will come
Cross in Shangbai because, so far-I shall
when it is desirable to have a plenary
be very brief about this-we have had, I
feeting of the Cummittee, and 1 am able
think, two statements from the Foreign
to way now that is being borne in mind
Secretary about what is happening out
by the Executive Committee. When
there, and we have also had a statement
opportunity offers 1 have no doubt they
from someone connected with the Inter-
will give the fullest consideration to the
national Red Cross. My view is that there
possibility of calling together such a
is a feeling in the minds of the relatives and
J do not think I have anyhing
dependants of our prisoners of war in the
INSURER - say at this stage. I expect that
Far East that these statements are some-
other hon: Members will be making con-
what contradictory. One was reassuring
tributions to our discussion, and if
and others gave facts of brutal treatment
necessary I shall be very glad to reply to
1 realiso that it might be difficult for the
Dear. But I do commend must heartily
Foreign Secretary to give us all the in-
Unin Voiv to the Committee I am sure
formation which is available to him from
that just Committee will want the Inter-
men who have escaped from the Far East,
governmental Committee to have the
but I think it would be better if he could
fulled possible support and that the Com-
give us a little more information on what is
milter look- forward to its achieving,
intended with regard to this office which
within the Imitations imposed by war,
is to be set up. Is it hoped that, as a
considerable results.
result, His Majesty's Government or our
Mr. Granville: I apologise for having
military authorities or the Red Cross will
stand Detween the Committee and that
be able to make some contact with the
very interesting statement which the right
Japanese Government, and make repre-
sentations which will secure an alleviation
him, Gentleman has made. 1 will only
detain hon. Members for one or two
of the conditions of our prisoners of war
in their hands?
moments before the Committee go on to
discuss the second part of this Vote nn
Mr. Law: I am extremely sorry if I gave
Refugees I would like very briefly to
the impression that I was dealing in a
Regraded Unclassified
1467
Supply: Committee-
I MARCH 1944
Diplomatic, etc., Services
cursory way with the questions which the
aware, are to transmit lists of prisoners of
hon. Stember has just touched upon. I
war, to distribute parcels, to visit camps,
certainly appreciate fully. and I do not
and so on. The Japanese authorities
think anybody could fail to appreciate,
have been extremely stiff about allowing
the deep anxiety which prevails through-
the International Red Cross to exercise
out the country about the conditions of
their rights: in fact, they have not allowed
our prisoners of war and internees-
them to excrcise their rights, in spite of
Mr. Granville: I thought the right hon.
repeated representations, in what are
Gentleman wished to interrupt me. Per-
called the occupied territories, the Philip-
haps I might be allowed to finish, as
pines, Malaya, the Netherlands East
have already been interrupted once.
Indies, and so on.
know the difficulties of the Foreign Office.
Mr. Mathers (Linlithgow): Are the
The difficulties of distance and the atti-
Japanese authorities parties to the Con-
tude of the Japanese constitute a tremen-
vention?
dous handicap to the Government in try-
ing to get improvement in the state of
Mr. Law: I will tell my hon. Friend
affairs, but I hope the Government will
that in a moment, As 1 was saying, in
remember that this Japanese war may go
spite of repeated pressure from the Inter-
on for years. What is to happen? I ask
national Red Cross and the protecting
them to put themselves in the position of
Power, the Japanese have refused to
the dependants of these prisoners, who
allow any visits to camps in the occupied
suddenly get this statement from the
territories. With regard to the obliga-
Foreign Secretary after they had received
tions of the Japanese under the Geneva
post-cards from prisoners saying that they
Convention, the Japanese Government did
were well treated.
not ratify the Convention, but at the
beginning of the war in the Far East they
The Deputy-Chairman: The hon. Mem-
said that they were going to observe its
ber said he hoped the Debate would be
provisions. How little they have kept
short. He is now going into the question
their word the Committee are aware.
of the length of the war and a great many
other things. This is a narrow Amend-
Mise Rathbone (Combined English Uni-
ment, and I hope that he will keep to it.
versities): While I do not intend to trouble
the Committee with a very long speech.
Mr. Granville: Very well. I will confine
I am afraid I shall have to depart from
myself to saying that I hope that in setting
the welcome brevity which has marked
up this office no money will be spared,
practically all the speeches in to-day's
and no amount of initiative be lacking on
Debates, because I have a fair amount to
the part of the Government in supporting
say about the work of this Committee.
the Red Cross, so that we shall have more
This is the first opportunity we have had
information as to what is happening to
since 19th May of a general Debate on the
our prisoners of war who are suffering in
refugee question. When some of us have
Japanese hands. I hope that the right
asked in recent months for such an oppor-
hon. Gentleman will give a. full assurance
tunity, we have been reminded that the
on that point.
opportunity would come when we dis-
Mr. Law: I apologise for interrupting
cussed this Vote. That is my excuse for
the hon. Member just now: I thought be
going in a little more detail into some of
had finished. I was saying that we were
the questions which are troubling myself
conscious of the very deep interest in the
and others who are interested in relugees.
House and in the country on the matters
Is it not rather significant of the impor-
on which the hon. Member has touched.
tance attached to different aspects of the
He asked whether the opening of this new
question, that not long ago we spent an
office would lead to more success in the
entire day discussing U.N.R.R.A., and
representations made by the International
that the amount we then voted was
Red Cross to the Japanese authorities. It
£80,000,000, while now, when we have
is really impossible to give any answer.
our first opportunity since May of discuss-
One must hope that it will lead to im-
ing the work of the Inter-Goverumental
provement. It will certainly lead-I think
Committee, the subject is sandwiched in
it is bound to lead-to some improvement.
between other subjects on a very busy day,
The functions of the International Red
and the amount we are asked to vote is
Cross, as the hon. Member is probably
£50,000. I was glad to hear that that
1469
Supply Committee- HOUSE OF COMMONS Diplamatic, etc., Services 1470
[Miss Rathbone,]
covers only administrative expenses, and
with several rooms, in Lower Regent
that the expenditure on the operative
Street It has four people, whose iden-
work of the Committee is likely to be
tity has been described by my right hon.
mething in the nature of £1,000,000.
Friend: Sir Herbert Emerson, his Ameri-
1 am not making any comparison be-
can deputy, his Swiss deputy, and the
tween the Inter-Governmental Committee
Dutch secretary to the Committee-an
and U.N.R.R.A. U.N.R.R.A. covers a
admirable learn. I know thein all. I have
vast field, Its job is to deal with the
the highest esteem for them all. They
whole post-war problem of rehabilitating
have wide experience and great knowledge
distressed Europe. Dealing with displaced
of refugee problems, and their hearts are
populations, who include refugees -
in their jobs. Sir Herbert, especially, has
that seems the new fashionable
worked at this problem for a long time.
He has a background of Civil Service
term for refugees - is only one
part of its work. But this Inter-
experience and very great knowledge. We
Governmental Committee on Relugees
can be confident that any work done by
also covers a pretty vast field. Consider
a team like that will be done with the
intinest discretion, with high technical effi-
some of its responsibilities. 1 noted that
my right hon. Friend said that be did
ciency, No rash promises will be made,
and there will be no unwise publicity. It
not want to go into detail in discussing
will all be in the best traditions of British
its work, and that it would be better not
to go into details, I quite recognise that,
and other diplomacy. But that technique
but there are certain facts known to us
has its disadvantages. It is inevitably
slow-work that has to be consented to
all as to the kind of work it has to do.
First, it is responsible, I gather, for con-
by a large number of nations working to-
certing immediate rescue measures for the
gether has, I suppose, inevitably to be
slow.
victims of Nazi oppression, so far as they
are dependent upon inter-governmental
But when one thinks of the machinery
of that little office, with three or four
action; for instance, the removal
from the neutral States of the over-
rooms, four people, with their two or
flow of those refugees they have
three typists, and £50,000 which we are
taken in, and the maintenance of
voting to-day for their expenses, one
thinks of the tasks allotted to them. How
those refugees who are removed from
many of the millions of men, women
neutral countries to havens of temporary
and children who are threatened not
(uge, and also of refugees who have
merely with death, but with torture, can
aped directly from enemy areas. We
be rescued? What is to be done with
heard that the Deputy-Director, Mr.
them if they are rescued, and, then,
Malin, has been in Italy and North
what is to be done with them after the
Africa, where, no doubt, he was consider-
war? It is just a little as though, seeing
ing that problem. We know that many
a number of people escaping from a
thousands of refugees were found in that
hungry tiger, you sent after them a stage
part of Italy which has now been libera-
coach, drawn by four white horses, when
ated from the enemy.
what you needed was a Rolls-Royce. It
Also, in regard to its post-war plans-
seems rather a leisurely machine, and a
and I attach extreme importance to this
small machine. I am not complaining;
-the Committee is responsible for
1 suppose an Inter-Governmental Com-
negotiating arrangements with neutral
mittee has to work in that way. We have
Powers as to what help we can give them
been told that there are 36 member States
in removing, now or after the war, the
on that Committee. They have not yet
burden of refugees that they carry, so
met in plenary session, but we are told
that they may be willing to take larger
that a meeting is likely to be arranged.
numbers. Obviously, what the small
That is not likely to lead to a quick
neutrals do largely depends on whether
result. When you have 36 Government
the burden is going to be a permanent
representatives meeting together like
burden or whether they can count on
this, every one of them will ask, What
other nations relieving them of a part of
does my Government think of it? " before
it or assisting them with the maintenance
they agree to anything. Then as to their
of their refugees. For all this work
Executive. I am not going to criticise
what machinery has the Inter-Govern-
them in the least. I have no justification
mental Committee? It has a small office,
for doing so, and I am told that they
Regraded Unclassified
1471
Supply: Committee-
MARCH 1944
Diplomatic, the Services 1472
work together admirably, but it is rather
odd to note that you have the Argentine
Committee can only act, just as the
Iso-1 make no comment, but note the
League of Nations did, through the in-
Same-and also the Netherlands and
dividnal Governments represented on the
Brazil as members, the Liberation Com-
Committee It cannot do anything itself
mittee nf France is a member, and the
except on a small scale, because all its
other two members are the United States
action depends upon what the individual
and ourselves, So far 50 good, but it
Governments may do, and, therefore, I
is rather curious that most of the countries
want to say that, while we gladly vote
which are the chief victims nf persen-
this money. we should supplement the
tion, such as Poland, Czechoslovakia and
work of this Committee by insisting that
the U.S.S.R. are not, as far as I know,
an organ similar to the Board in the
represented on this Executive. Nor are
United States, with a full-time executive
the chief neutral countries which have
director in constant touch with the director
space to receive refugees-Sweden
in the United States, should be set up.
and Switzerland. The Executive was
The American Board has direct access to
appointed in 1938, but it has never been
the President himself. The object is that
it would make it 50 much easier for the
reviewed or added to with a view to
Inter-Governmental Committee to do its
making it rather more realistic, Is it not
possible for something to be done about
work if it had in London a body repre-
that?
senting His Majesty's Government which
really is carrying out the recommendations
Now 1 come to a more important point.
made by the Inter-Governmental Com-
Many of us have had our minds on this
mittee.
point for over a year, and we then sug-
gested that what was wanted in this
This is a vast problem. This Inter-
country was a new organ of Government
Governmental Committee is an inevit-
which would co-operate with the Inter-
ably slow mechanism in tackling so vast
Governmental Committee so as to secure
a problem as the problem with which it
the full-time intration of first class
has to deal There are questions of
minds on this question. Well, only two
shipping and transport, collecting of
or three weeks ago the United States did
refugees, questions as to where refugees
that very thing. President Roosevelt set
are to be kept until permanently settled,
up a War Refugee Board, composed of
and questions of negotiations with
he Secretary of State, Mr. Cordell Hull,
neutrals. There are questions of food
the Secretary of the Treasury, Mr.
supplies and 50 forth. It is a huge busi-
Morgenthau, and the Secretary of State
ness, and it is the one hope of rescue for
for War, Mr. Stimson. We have a sub-
millions of people, nearly every one, in
committee of the Cabinet here composed
a way, a separate problem. You really
of three equally eminent Ministers, but
capnot work it unless the nations repre-
the difference is that the American Board's
sented on the Committee have their
functions are clearly defined and it has a
separate machinery for co-operation with
full-time Executive Director. Its functions
the Inter-Governmental Committee, for
are set out in a pamphlet-which I have
perpetually working backwards and for-
here_
wards as between it and themselves to
carry out the projects planned on a far
The Deputy-Chairman: I think we are
bigger scale than would be possible if the
getting a little wide, because if it is pos-
work depended on a Committee with so
sible to pay a tribute to the American
small a mechanism of operation.
representatives on this Board, in a wide
way, such as is now being done, it would
This is my last word. I ask the Com-
be equally possible to criticise them, and
mittee to recognise that we in this country
it is not within the duty of this Committee
have a rather special responsibility for
to criticise or otherwise comment on the
this Inter-Governmental Committee. We
representatives of a foreign Government
ought to take the initiative and set a lead
in that way. I did not wish to stop the
to other nations by what we ourselves are
hon. Lady before, but I do not think we
doing to help the Inter-Governmental
must go any further.
Committee. For one thing, the Com-
mittee is situated in London, while the
Miss Rathbone: I bow to your Ruling,
headquarters of U.N.R.R.A. are in the
Mr. Williams, but the point 1 wanted to
United States, where we expect that a
make was that the Inter-Governmental
good deal of the planning out will be
Regraded Unclassified
1473
Supply: Committes- HOUSE OF COMMONS Diploinatic. etc., Services 1474
Miss Rathbone.]
all the threatened victims we can and not
done. The chairman of the Inter-Govern-
grudge the money, but vote it gladly,
mental Committee and the British repre-
sentative on it is the Noble Lord the
Mr. Lipson (Cheltenham): I am sure
Member for Horsham (Earl Winterton),
the Committee will understand why it was
and therefore the Committee looks a good
somewhat difficult for the hon. Lady to
deal to him, because we know his great
keep within the rules of debate. We know
interest in this problem, and we want
how very strongly she feels on this sub-
to see that he is able to say to his Com-
ject, and how much she has done herself
mittee that the British Government is
to arouse public opinion to a sure of re-
going to do so-and-so and thus give a
sponsibility in the treatment of refugees,
lead for the whole of the world. There
and we are extremely grateful to her. I
is another reason for our special respon-
welcome the increase in the amount of
sibility. We know that though very
the grant from £2,000 to £50,000, with
many of these threatened millions are
the promise of underwriting (1,000,000
non-Jewish, the majority of them are
for further operations, because this in-
Jewish-the Jews being the one race
creased expenditure, I hope, means an
which Hitler threatens with wholesale
increase of activity. One naturally asks
extermination of men, women and chil-
oneself-Is the amount that is being spent
dren, and he is doing it. He threatens
even now enough, and are we really
to exterminate the entire Jewish popula-
tackling this problem as it ought to be
tion of Europe. Well, we hold the gates
tackled, because we were reminded by
of Palestine and we promised the Jews a
the right hon. Gentleman, in introducing
National Home there-
the Vote, that this is a problem which
is really beyond what the imagination
The Deputy-Chairman: I am afraid the
can conceive, and therefore the action
hon. Lady must keep off Palestine and
dealing with it ought to be in accordance
the Home for Jews. If we once begin to
with the news. We were asked not to in-
discom that, there will be absolutely no
quire into the details of the work. We
end to it, and it has oothing to do with
will respect that request, but we are very
the Question before the Committee.
much left in the dark as to what actually
Miss Rathbone: In our hearts, it was
is being done. So far as we are told to-
very much to do with it, because we
day, all that has been done is that certain
machinery has been set up, but we did
lways remember how many people are
not find, in the information given to us,
theady massacred who might be alive
and happy now if they had been allowed
any sense of urgency or of the importance
of the time factor. There are millions
to go to that promised land. We remem-
her also that the British Empire is a big
of tragedies behind this particular pro-
blem, so we ask ourselves how many
place. If I cannot mention Palestine,
lives are being saved and whether this
for God's sake, let us find a place some-
where in the Empire where these people
problem can be tackled only by the ortho-
dox method associated with inter-govern-
can get in. I was reminded by the Under-
mental committees.
Secretary for the Home Department in
putting a question-
I would like to ask the member of that
Committee in what spirit they approach
The Deputy-Chairman: We cannot go
this problem. Do they see it in this light?
Into Home Office matters on this Vote.
Supposing the positions were reversed,
Miss Rathbone: I will not go further
and, instead of them being an inter-
with it. But if it was a mistake to men-
governmental committee trying to bring
tion the Home Office, it was not my mis-
succour and relief to victims of Nazi
take but that of the Under-Secretary in
terror, they were those victims and were
telling me that I should be able to raise
themselves the refugees? Could they
the question on this Vote. We vote this
honestly say that they themselves, in
money gladly and only wish that the sum
those circumstances, would be satisfied
we are voting was larger. I hope the
with what was being done by the Inter-
Vote for the operational activities of the
Governmental Committee? It seems to
Inter-Governmental Committee, which we
me that that is a very fair test. But for
shall be asked to agree to later, will be
the grace of God, the position might have
been reversed, and, instead of the Inter-
larger because we have a heavy re-
Governmental Committee being in the
sponsibility in this matter. Let us save
Regraded Unclassified
475
Royal Amount
1 MARCH 1944
Diplomatic, etc., Services 1476
position of being able to help, they might
3. Prize Salvage Act, 1944.
themselves have been needing tais help,
and 1 want to submit, in all earnestness,
4. Guardianships (Refugee Children)
that that is the test they should apply to
Act, 1944.
5.-Supreme Court of Judicature
this problem. 1 have to contess that I
(Amendment) Act, 1944.
cannot find anything in the record of
achievement of the Inter-Governmental
6. Disabled Persons (Employment)
Act, 1944.
Committee to justify any very great con-
7. House of Commons Disqualification
fidence that they are alive to the urgency
(Temporary Provisions) Act, 1944.
of this problem, and that the action they
8. Income Tax (Offices and Employ-
have taken is commensurate with the
ments) Act, 1944.
need.
Mr. Silverman: Will the hon. Member
SUPPLY
not agree that, within the limits which
they exercise, they do show a sense of
Again considered in Committee.
urgency, and that, after all, we should
[MAJOR MILNER in the Chair]
be very grateful to them?
Question again proposed:
Mr. Lipson: Surely the answer to that
That a Supplementary sum, pot exceed-
is this-that, if the limits of their powers
ing £53.873. be granted to His Majesty, to
are too narrow or too confined, the Com-
defray the charge which will come in course
mitee ought to say so, instead of saying
of payment during the year ending on the
that they are able to deal with the pro-
31st day of March, 1944. for the expenses in
connection with His Majesty's Embassies,
blem, when they know they are not in
Missions and Consular Establishments Abroad.
a position to do so,
and other expenditure chargeable to the Con-
sular Vote: certain special grants and pay-
Earl Winterton (Horsham and Worth-
ments, including grants in aid: and sundry
ing): I gather that my hon. Friend is
other services."
criticising my Ambasiadorial colleagues on
Mr. Lipson: I should like to make it clear
the Committee and myself-the represen-
that, in the remarks that I am making, I
tatives of the United States and other
am not concerned with personalities but
countries-when he talks of they." It
with a very great tragic human problem.
is only in order to make the point clear
I have to ask myself whether the machin-
that I have interrupted.
ery and the means we have taken to deal
Mr. Lipson: We are asked to vote a
with this problem bear a proper relation
to it, and are adequate. This matter of
sum of money towards the work of an
Inter-Governmental Committee. It is
the rescue of refugees is on my conscience,
as I believe it is on the conscience of a
only right that we should ask, Are we
getting value for the money that is being
great many people, and we in this Com-
mittee have a very definite responsibility
spent?; is enough money being spent?;
and is the dividend in the shape of lives
in the matter.
being saved adequate?
Therefore I would say this. It may be
Whereupon. the GENTLEMAN USHER OF
necessary to conceal a great deal of the
work of the Committee, but many of us
THE BLACK Rop being come with a Mes-
feel that we are not in a position to esti-
sage, The CHAIRMAN left the Chair.
mate the value and the importance and the
Mr. SPEAKER resumed the Chair.
seriousness of the work that this Com-
mittee is carrying out, and we would like
a complete assurance as to whether the
ROYAL ASSENT
machinery is adequate for its purpose OF
Message to attend the Lords Commis-
not and, if it is adequate, that the
sioners.
machinery is being used to the full so that
the object in mind may be achieved. We
The House went; and having returned-
would also like an assurance that the Com-
Mr. SPEAKER reported the Royal Assent
mittee will not hesitate to use, if need be,
to:
unorthodox methods to try and save
L Landlord and Tenant (Requisitioned
human lives. We would also like it to
Land) Act, 1944
be considered whether it is advisable to
2. Courts (Emergency Powers) (Scot-
supplement the action taken by the Inter-
land) Act, 1944
Governmental Committee by similar action
Regraded Unclassified
1477
Supply:
Committee-
HOUSE
OF
COMMONS
Diploments.
atc.:
Services
1478
FMr. Lipson.]
to that which President Roosevelt has
currestances that have arisen since rgth
found it necessary to take in America-he
May, I think it was, when last the House
was apparently so impressed with. the
or the Committee had any opportunity
of discussing these matters. There have
urgency of the problem that be thought
inter-governmental machinery by itself
been, since 19th May, great changes in
Europe in the circumstances that these
was not sufficient. I would like further
measures are designed to meet. John
consideration to be given to that matter.
Pehle, a member of the executive of the
We in this country are engaged in a
body in America charged with these
life and death struggle. That was true
matters, said the other day, quite
when we began the war, it still is true, and
rightly, that unless this job were
we can only hope to succeed in that
done within the next few months
struggle by God's help. If we go to God
there would be no job left to do.
and ask Him to help us in our trouble,
It is in that spirit that the problem has
I think we ought to put ourselves in a
to be approached. I would like to direct
position to say to Him that we have
the attention of the Committee to some
helped those we were in a position to help.
of the things that have in fact been hap-
That is the test which 1 would apply to
pening since May of last year, because,
the work of this Inter-Governmental Com-
not merely do things happen, but we gel
mittee. Here are these hapless refugees,
knowledge of them. I have a copy of a.
for whom we have a special responsibility.
document which has reached London. It
Can we honestly say. with a clear con-
only concerns Poland and I think It only
science, that impressed by the urgency of
concerns the Jews. May I, in passing,
the problem, by the importance of the
my that I speak in this matter as a Jew,
time factor, we have done everything that
and as a Jew I would say at once that
is humanly possible to save human lives?
this is by no means entirely a Jewish
Unless we can give a satisfactory answer
problem-not by any means-and DO
to that, I submit we have not done what
Jew, knowing the facts, would think that
we ought to have done. To do anything
it was, or would lose any opportunity al
less than the maximum possible in a prob-
pointing out that it was not,
lem of this kind, is simply not good
It remains true, however, what the hon.
enough.
Lady said, that it is very largely a Jewish
question, and that among the refugess
Mr. Silverman (Nelson and Colne): I
the Jews are the only ones against whom
would like at once to dissociate myself,
the Nazis have declared a policy of com-
and any organisation interested in this
plete extermination, regarding them-as
matter with which 1 may be concerned,
they expressly say-as belligerent enemies.
from any kind of criticism, implied or
do not quite know what they mean by
express, direct or indirect, of the Inter-
that because, if the Jews were really
Governmental Committee. So far as I
belligerent enemies, I suppose the Geneve
am aware its work is done with efficiency
Convention would apply to them, and
and urgency and in a spirit of co-opera-
certainly no attempt is made to make it
tion to which no one who speaks with
apply. But the Nazis regard themselves
any sense of responsibility, could fail to
as making war upon them in the sense
pay carnest and sincere tribute. Nobody
of rooting them out ulterly, in an en-
would pretend, however, that the work
deavour to solve what is sometimes called
they are doing is going to resçue all those
the Jewish question by the extermination
threatened by the evil thing that stalks
in Europe of any Jews at all. That policy
throughout Europe to-day, I will have
is to be resisted from outside, but it is
a word or two to say about that a little
also resisted from within, and I want
later on, but I thought it was right to
to draw the attention of the Committee
say SO much at once, so that there should
to some things that are happening. This
be no doubt about it.
report comes from the Jewish National
Committee, operating somewhere in
We are concerned to-day with a Sup-
Poland, and it reached London in Febru-
plementary Estimate and we cannot
ary of this year. In this report it is
bring in and debate large issues of general
stated-
policy. One can only deal with the new
" Last month we still reckoned the number
circumstances that have necessitated a
of Jews in the whole territory of Poland as
Supplementary Estimate at all, new cir-
250,000 to 300,000. In a few weeks not more
Regraded Unclassified
1479
Supply Committee-
MARCH 1944
Diplomatic. etc., Services 1480
than 50,000 of us will remain. In the last
declaration was made of the intentions
DIAMINE before death the reminants of Polish
Jewry appeal for help to the whole world
of all the United Nations. That declara-
The blood sheil by 3,400,190 Jews in Paland
tion was simultaneously made elsewbere.
will purso not only the Hitlerite bearrs but
1 would suggest to the right hon. Gentle-
all those who uttered words but did not act
man that the time has come when a new
to save a people condemned to extermination
by the Hitlerite munteres. May this, per
declaration might be made, It is doubtful
hape our last voice from the ahym, reach the
whether it has very much effect, but it
cars of the whole world."
has some, We do know that there are
There follow descriptions of mass murders.
people in Europe who listen. We do know
In the early days of November, uns. all
that there are people in Europe who re-
the Jews in the two large concentration camps
act. We have information about heroic
in Poland numbering 25.000 people, were
acts done in enemy-occupied countries
completely appibilated On Wednesday,
which have the effect of actual rescue, and
November 3nf. the 10,000 Jews in the camp
of Trawniki were marched out, surrounded
many of us think that a new declaration
and machine-gunned. The women and chil-
made now, a new joint warning by the
dren were loaded into 30 lorries, transported
heads of the Allied Nations, might be
to the expcution place and mundered by
heard. But not only a warning: a de-
machine-gunning. On Friday. November 5th.
several thousand Jews were massacted in a
claration, that the satellite States could
similar way in the district of Lublin"
hear, about the special measures they
I am not going to weary the Committee
could take to stop the deportation, perse-
with a further recital of horrors, but there
cution and killing of the Jews. A call
are others of the same kind. They resist.
made in the name of the leaders of the
On the fourth day. the Jewish youth of
United Nations to the peoples of Europe
Bialystok attacked their persecutors with hand-
to do what they could to prevent mas-
grenades, fire bombs and a couple of machine-
sacres, and the deportations preliminary
guns, killing and wounding several hundred
to massacres. It is not a thing which
Germans and Ukrainiane The Germans
brought up, as in Warsaw, fielif-artillery and
requires any expenditure of money,
tanks with 1,000 armed policemen and S.S.
energy or machinery; it is a declaration
and many detachments of Chramiane They
which, If it succeeded in saving any lives,
set fire to the Chetin from all sides. The
would be justified. I think it is realised
violent fighting continued for eight days.
that the declaration that was made before
Afterwards, the Jews set fire to. and destroyed
the autorious death-camp of Treblinka
was not altogether without effect. A
in the region of Chelm-Labilin The Jews
new one made now might be very oppor-
organized themselves into Agbring groups and
tune indeed. Certainly the neglect of it
attacked the Germans and Ukrainians, dis-
would be difficult to justify if there was
arming and killing the majority of them. They
barnt the gis-chambers and the cornitoria,
only the remotest prospect that the mak-
and the survivors fled to the forests in the
ing of it would succeed in saving any lives
neighbourhoud."
at all.
It is against that kind of background
I would like to say something about the
that We are considering to-day this Sup-
particular machinery that this Supple-
plementary Estimate. It will grow as
mentary Estimate is designed to pay for.
military defeat after military defeat is
I have already said something about the
forced upon the Germans. As they
spirit in which the work of this Committee
retreat. the last retiring German soldier
is done, but they are charged with look-
will kill the last available Jew, What
ing after refugees, that is to say, look-
proposals have we to make about that?
ing after people who have already escaped.
I would like to make one or two practical
It is only when a man, woman or child
suggestions. I understand that the right
has succeeded in escaping from some-
hon. Gentleman is going to reply. 1
where or other that he or she comes under
cannot ask him to give positive and con-
such jurisdiction and powers as the Inter-
structive replies to all the things that I
Governmental Committee possess. Obvi-
propose to suggest now, but I do hope
onsly, that cannot be enough, because
they will be urgently and sympathetically
there ought to be some way of creating
considered, and that if anything can be
refugees, of getting people out so that
done about it, it will be done without
they could acquire the status of refugees
undue delay.
and this machinery become responsible
When the news first became known of
for them. I am inclined to think that it
this active initiation of the policy of com-
was along those lines that the United
plete extermination, there was enacted in
States were thinking when they set up
this Chamber an historic scine, when a
the United States War Refugees Board.
Regraded Unclassified
1481
suppor
Committee-
HOUSE
OF
COMMON
etc.) Services 1422
(Mr. Silverman
matters as I do, but I would invite him
We have been asked not to lalk too much
nust earnestly Do look again at this aspect
about certain matters and nobody would
of the question and make quice certain
dream of doing so but people can be got
time our country does not take the second
out, they are being got out, and some-
place; instead of the first place, which
attempt ought to be made al active rescue.
both practical politics and our traditions
If the United States thought Il worth
would compel us to occupy,
while to set up special Government
I would like to see created in this
machinery alongside the Inter-Govern-
country machinery parallel to the United
mental Committee might it not be worth
States War Refugres Board. I would
while to consider whether we, 100, ought
like to see it done in a large way, in such
not to set up parallel machinery in this
a way as would make it clear to the world
country? I do not refer lo this by way
that we do recognise the heavy obligations
of praise, censure or criticism of the
which rest on our shoulders in these
United States at all; I point to it as an
matters and that we do not intend to lag
example of the way in which one of our
behind anybody in the discharge of those
principal Allies is attempting to meet
obligations. I would like to urge con-
their obligations when faced with exactly
tinued and even closer co-operation with
the same problem. It was not a light
those bodies in the world which are
thing for the United States to do. They
charged with the responsibility of practical
have not set up their Board merely for
rescue wherever it is possible. Bodies like
the sake of adding machinery to
the World Jewish Congress and the
machinery. Presumably, there is a prac-
National Rescue Committee in Palestine
tical function which that Board will carry
are both actively engaged in such rescue
out. If that is so is it not reasonable to
work as can be done. I would like to see
inquire whether similar machinery might
a method evolved of associating bodies of
not be set up here to carry out the same
that kind with the Inter-Governmental
kind of functions, which, 1 think, are dis-
Committee, with the State machinery,
tinguished from the functions of the Inter-
wherever it may be set up. concerning
Governmental Committee, in the way I
itself with active rescue and organisation
have indicated?
of rescue, A large number of people who
are getting out are Stateless. They them-
May I say, in passing, that I am afraid
selves might be organised and be in some
there is a growing feeling that the initia-
way or other represented on these bodies,
tive in these matters, the active urgency
because nobody knows more about the
of endeavour, is passing from London to
means of rescue than they do. I need not
Washington? I think that if there were
say any more about other matters which
any justification for such a view it would
have been dealt with by my hon. Friend
be a very great pity, because we here
the Member for the Combined English
have a proud and long record of rescue
Universities (Miss Rathbone).
of the victims of political- and religious
persecution, extending over many cen-
In conclusion, may I repeal that the
turies. It is one of our proudest tradi-
urgency of this matter is extremé, that a
tions; it is one of the things we stand for
is literally true that those you save within
in the world. Nobody pretends that we
the next few months will be the only ones
have ceased to stand for it, but there is a
who can be saved, since afterwards none
tendency to push over the initiative in
will be left? Do not let us have it on our
these matters to the United States of
conscience that there were people who
America. I think we ought to be careful of
might have been saved but who were not
that; we ought to resume the initiative
saved because we were not willing to take
ourselves. It is not merely in accordance
from our other pressing obligations the
with our traditions to do so, but also
time, energy or machinery necessary to
because we are 3,000 miles nearer the
save them. If the employment of that
scene. I am not at all sure whether some
time, energy or machinery were to delay
of the machinery we have here is not a
victory by a single day none of us would
little cumbrous, whether the delay in con-
ask for it to be taken, but it is not correct
sidering matters, reaching plans and
to say that the only way of saving these
carrying them out is not longer than some-
people is by ensuring a quicker victory.
times it might, be. I know that the
As defeat crowds upon defeat for the
Minister feels as keenly about these
enemy so massacre crowds upon massacre.
Regraded Unclassified
1483
Supply: Committee-
I MARCH 1944
Diplomatic, etc., Services 1424
The very coming of victory may mean the
body can mention a topic like this with-
extermination of the last remnants of the
out exciting a good deal of feeling. But
Jewish people in Europe. Well, if that
I always imagined that the Jews were
sacrifice were necessary in order again to
members of a religion and not of a raco,
bring freedom to the world, let it be made.
For that reason it would surely be better
But no one is certain that it is necessary.
for us to talk about the Poles or the
At any rate, do not let it be on our con-
Greeks, or any one else, and include the
science that there were any lives at all that
Jews in that. I have been in touch with
might have been saved that we neglected
some of the Polish organisations during
to save.
the past week and I have heard some-
Lieut.-Colonel Sir Walter Smiles (Black-
thing of the terrible atrocities committed
burn): I intervene in this Debate only
and the massacres, and I have heard of
after hearing the last two speeches. One
the gas chambers. I have believed what
would imagine that the only refugees in
1 have heard to be true, although when
the world at present were Jews. Great
you hear it for the first time you would
publicity is given to every atrocity against
almost imagine that it was far-fetched.
the Jews, and it is the feeling of many
However, after hearing of these things
people in this country that to times the
from peoples lips one believes, them to be
publicity is given to the Jews in this
true, even in 1944. But these people
matter as to members of other races who
were talking about the Poles that were
are maltreated or murdered. That feeling
massacred: they were not talking about
is springing up, and it would be just as
those of one religion. If we are to give
well for my hon. Friend the Member for
relief and help-and I am quite sure that
Cheltenham (Mr. Lipson) and my bon.
every penny the Foreign Secretary asks
Friend the Member for Nelson and Colne
for would be agreed to without demur in
(Mr. Silverman) not to forget that
this House-let us at any rate give to
the Relgians and the Greeks also, I get
Mr. Lipson: I did not mention the word
letters from my own constituency, from
Jew once in my speech.
the Society of Friends I think it is, and
they tell me that the Belgians and the
Mr. Silverman: Perhaps the hon. and
Greeks have suffered more than any one
gallant Member opposite would do me the
else, I suppose nobody really knows,
courtesy of remembering that I expressly
perhaps even the Foreign Secretary him-
said in my speech very much what he is
self hardly knows, who has suffered the
saying now,
most, but I am quite sure that when a
Sir W. Smiles: I apologise if I am
Debate on this subject takes place it will
wrong. but we shall see in Hansard later
be very much better for the newspapers
what was said, At any rate, I think the
to give publicity to the fact that we are
hon. Member for Nelson and Colne men-
voting money for the Grecks, the Poles
tioned some organisation for rescue work
and the Belgians rather (han for those of
in connection with Jewish refugees.
one religion only.
Mr. Graham White (Birkenhead,
Mr. Silverman: I expressly said that
East): Whatever the hon. Member for
this problem was not by any means an
Nelson and Colne (Mr. Silverman) may
exclusive Jewish problem and that no Jew
or may not have said in the coorse of
thought it was so. I also said that, never-
his speech, there was one sentence which
theless, it was largely a Jewish problem.
will dwell in the memory of all who heard
Miss Rathbone: I think I know all the
it, and that was the striking phrase that
if the sacrifice were necessary of all the
organisations working on this problem,
We are perpetually stressing that it is not
Jewish lives lo order that liberty might
only a Jewish problem. Many non-Jewish
come again to the world, then let it be
made. Having made that statement, I
people have been, and are being,
do not think anyone would want to cavil
victimised, but the majority of the victims
are Jews. Everybody knows that that is
at anything else he might-bave said. He
so. Hitler's policy of exterminating a
expressly said in his opening sentences
that he was not speaking for the Jews
whole people is confined to the Jews. They
alone and, indeed, who would propose to
are the principal victims.
limit this discussion to the question of
Sir W. Smiles: I expected to have a
the Jews? We are, in fact, living wit-
good many interruptions, because no-
pesses of a most repugnant phenomenon
Regraded Unclassified
1485
Supply: Committee- HOUSE OF COMMONS Diplomatic, etc., Services 1486
[Mr. White.]
in history. We have enemies inspired by
Members, have not the responsibility: it
a fanaticism which apparently is even
lies upon the shoulders of my right hon.
stronger than any inspiration and effort
Friend, and he himself must seek the best
way out,
which has been inspired by good pur-
poses. In the last few weeks they have
Mr. Astor (Fulham, East): I am
stated their intention to fight to the last
going to back up the words spoken with
man in this fifth year of war and then to
such eloquence by the hon. Member for
commit suicide in large numbers. They
East Birkenhead (Mr. G. White). 1 am
are inspired by the same fanaticism to
interested in the refugee question, and
wreak their vengeance on anybody who
in the Middle East I actually had to look
would prevent them.
after a very large refugee camp of
1 would support the hon. Member for
Greeks. 1 want to make one or two
Nelson and Colne in his suggestion that
points which I think are important. It
machinery, the counterpart of that which
is very important to keep perfectly separ-
has been set up in Washington, might
ate the refugee question and Palestine.
be set up in this country if I did not
We were able to get enormous help in the
believe that the right hon. Gentleman
Lebanon, Palestine and Egypt from the
who carries the responsibility in this
local inhabitants because there was no
House had not considered it an unwork-
question of creating-
able piece of machinery. I hope it might
at least go forth from the House of Com-
The Chairman: I am sorry lo interrupt
mons to-day that as we were all of one
the hon, Member but we cannot discuss
mind when we passed the original Resolu-
conditions in Palestine on this Vote.
tion on this matter 50 there is no differ-
Mr. Astor: With great deference 1 will
ence of opinion among us to-day. We
avoid that point. I only wanted to skate
Members of the House of Commons are
over it very briefly, because il has, to some
aware that there are some aspects of this
extent. almost prejudiced the possibility
terrible manifestation that it might be
of getting Jewish refugees out of Eastern
unwise to discuss. We realise that may
Europe, and I think that, whatever may
be so, and we are consequently very
be people's feeling in the matter, it does
guarded in anything we may my.
not in any way take away from the
What we do want from the right hon.
Christian duty to get as many of these
Gentleman is an assurance that nothing
refugees out as we possibly can If we
which could conceivably be done to save
neglect to do anything now which can
even one life will be neglected. My hon.
possibly be done, we shall curse ourselves
Friend the Member for Nelson and Colne
later on for our short sightedness. In
said that, as events march on, there may
the recent pamphlet of my right hon.
in a few months be no problem of this
Friend the Minister of Health it said there
particular kind to solve, but 1 am not
were not enough dentists in this country
sure that I am as pessimistic as that.
to provide treatment for all the children
There are events on the horizon which
in need of it. 1 wonder how many Jewish
will make the satellite countries reflect
dentists before the war-
very seriously as to their course of action
The Chairman: The hon. Gentleman is
and it may well be, sooner rather than
now encréaching upon the Home Office.
later, that events will take place which
That matter does not arise here:
will make some of the satellite countries,
who are now holding down large popula-
Mr. Astor: I only wanted to suggest
tions, consider very scriously whether
certain considerations which might in-
even at this late stage they cannot do
fluence a representative of that Commit-
something which can be placed on the
tee in his attitude towards refugees.
credit side of their balance sheet. I do
Earl Winterfon (Horsham and Worth-
not know what can be done. The right
hon, Gentleman may have some means
ing): I can give my hon. Friend the
assurance that my opinion will not be
at his disposal, and I emphasise that
biased by any of the matters he has men-
aspect of the affair. I only intervened
tioned, one way or the other.
because I wanted to express my convic-
tion that we were unanimous in the
Mr. Astor: I very much regret that my
matter, There has never been any dif-
noble Friend is not going to be influenced
ference of opinion. We, as individual
to some extent
Regraded Unclassified
1487
Supply Committee-
MARCH 1944
Inplamatic vic. Services 1488
Earl Winterton: My hon. Friend is
the same tone as the bon, Member for
trenching on a very dangerous form of
East Fulliam (Mr. Astor). If I were not
argument. I have no Ministerial respon-
able to convince the Committee that this
sibility, Ministerial responsibility rests
is a caso of exceptional urgency I should
with my right hon. Friend opposite. 1.
not have (elt it worth while to listen to
merely represent his views,
the speeches already made. My first re-
Mr. Astor: I am very sorry if anything
flection is that we are a highly fortunate
I say may not be able to sway my noble
body of politicians to occupy the only
Friend, but 1 hope I am still at liberty to
available place in Europe for a discussion
mention certain considerations in which
on this subject. In this small island we
he may take an interest on reflection. I
are separated from the mainland of
hope we shall not follow the American
Europe by a very narrow sea, and we
system of setting up a special office, be-
have been able to escape the sense of
cause all my experience is that these new
dread, fear and horror which closer ac-
mushroom Government Departments are
quaintance with the problem has conveyed
never strong enough to deal with a really
to people in various parts of Europe, This
strongly-entrenched Government Depart-
is not really a Jewish question, though
ment.
the Jewish people are involved to perhaps
a greater extent than anyone else, There
The Chairman: The hon. Member is not
are other refugees-Greeks, Yugoslavs,
entitled to discuss the arrangements made
Belgians, French, Norwegians and Danes
by another country. Will he please con-
have been mentioned-many of whom
fine himself to the subject matter of the
have found a home away from home and
Estimate.
many of whom are here enjoying our hos-
Mr. Astor: With deference, Major
pitability, if it can be termed such.
Milner, the hon. Member for Nelson and
I regard it as a very great privilege for
Colne (Mr. Silverman) mentioned the
Merobers of this House to be able to
possibility of having some form of
tend this offer and to make this mode
separate office. I do not want to go
provision of £50,000, envisaging a larger
further than he did. I was only following
expenditure later on, to be applied to what
up what he said on the purely practical
is called operational expenditure, Opera-
point that it is not the best system of
tional expenditure is very difficult to de-
organisation to start a special body but
fine, but it certainly means the making of
to get a really high official in an existing
provision for the reception, maintenance.
Department specifically charged with this.
transport and regulation of this very un-
On the question of what we can say to
happy traffic which is now taking place
neutral countries, the principle has been
surreptitiously under clandestine arrange-
admitted that the satellite Powers can
ments, Many are escaping. They are
work their passage back. We have defi-
leaving the areas of danger and coming
nitely made a distinction between the
within reach of a helping hand and what
treatment of Germany and the treatment
we are proposing is that at least £50,000
of the satellites. We must make is abso-
shall be available to extend that and to
lutely clear that one of the factors influenc-
meet halfway those people who are fleeing
ing our treatment of the satellite Powers
from the wrath of their enemies on the
after the war is their attitude towards the
Continent and seeking salvation and sanc-
refugees within their borders. There is a
tuary in this very fortunate country and
wide divergence, and we should make il
in other parts of the world.
quite clear and explain to them that in
I agree with the right hon. Gentle-
our relief operations immediately after the
man who is responsible for the Estimate
war, in any sanctions that we may im-
that this is not the end, but the beginning
pose, in our general treatment of them
of a very large plan of salvation, in which
politically, this will be a factor which will
we are joined directly by the United
defnitely-influence our treatment of them.
States, who have committed themselves
want to reiterate what has been said,
to the same financial extent as we have
this should go out from the-House of
done. I should like us not to be too
cons as having been backed up by
squeamish about the nationality and the
tives of every party.
religion of the people we are saving, T
cafell (Gower): I should like
is the anniversary of the patron saint
he same direction and in
my country. His name was David, but
D
Regraded Unclassified
489
Supply: Committee- HOUSE OF COMMONS Diplomatic, etc., Services 1490
[Mr. Grentell.]
taken by us in this House and shared
David originally was not a Welsh name.
by our people, Do not let us be atraid
David was a Jew, a lovable character, a
to tell our people about these things. In
brave man and a human man, and the
this country I per cent. of our popula-
David who became the patron saint of our
tion is of the Jewish race. What is wrong
country was equally lovable and equally
with the 90 per cent. that they should
brave. The oaths that we take, the
not be told? In Germany the percentage
vows we offer in this House were origin-
is also 1 per cent. We know what was
ally based upon a Jewish institution and
wrong with the German Reich and the
a great Jewish character, who lived his
German people. We must carry out our
life and died equally bravely as he had
work of charity, rescue and salvation re-
lived. There is the problem.
gardless of race, I hope that the Com-
1 should like us to dismiss the priorities
mittee will dedicate itself to-day, not
in this matter. A Jew is no more entitled
merely by supporting this Vote, but by
to sympathy in distress than anyone else,
doing and preparing to do something
much more in the next six or twelve
and I do not think anyone else says that
months than we have done in this regard
in the House, but it is a lamentable fact
in the last two or three years. If this Vote
that millions of people are homeless in
Europe. No one can predict the propor-
is only a spur to gréater effort to help
these people towards personal security,
tion of those who can get away from the
we shall have done a good day's work in
areas of danger, but certainly there are
this Committee.
areas where life is very uncertain, and
there is no object more worthy of human
Mr. Law: 1 am sure that my bon.
sympathy than a hunted human being. I
Friend the Member for Gower (Mr. Gren-
did some work in relation to the Sudeten
fell) truly represented the views of the
Germans in the time of Munich and 1
Committee when he welcomed the pay-
was privileged to conduct the two first
ment which it is proposed that we
parties from Prague to Gdynia, It was
make towards the expenses of the In
very uncomfortable for me, but I will-
Governmental Committee. I am sure,
ingly incurred the risks and discomfort
too, that he represented the views of hon
and fatigue attendant upon those jour-
Members when he urged that the refuger
neys.
problem should not be left only to the
Inter-Governmental Committee, but that
I shall always remember the courtesy of
we should work at it in other ways cease-
the Foreign Secretary of those days.
lessly until we can get some kind of solu-
There was no besitation at all, and on
tion. The hon. Gentleman the Member
the direct applications that I made to
for Nelson and Colne (Mr. Silverman) re-
him sufficient sums were made available
ferred us back to the dark and hideous
to send 400 people who were in immedi-
background against which we have to con-
ate danger of their lives, They were
sider this problem. 1 think he was quite
German speaking people-there may have
right to do so, He was right to impress
been some Jews among them-and they
upon us once again, not only the impor-
were in danger. On that journey I had
tance of the problem, but its urgency. The
occasion to go through Poland and I saw
hon. Member made what was certainly a
the Polish ghetto. I, who had always
dismal prophecy, and what may prove
been sympathetic with the history of that
to be a true prophecy. when he said that,
race, saw in a way 1 had never previously
as defeat drew nearer Germany, so the
witnessed the limitations and hardships
excesses against the Jews would increase
long ago imposed on the Jewish commu-
in intensity. That may be so, but I hope
nity. There are people who have escaped
that il will not be so. T am more inclined
from Hungary and other places, and if
to agree with my hon. Friend the Member
there is anything we can do in Parliament
for East Birkenhead (Mr. Graham White)
to help them we should do it,
when he reminded us that as defeat drew
1 congratulate my right hon. Friend
nearer to Germany, so the satellite coun;
on the sympathy and understanding he
tries would attempt to re-insure by tre
has shown. He is a worthy son of a
ing these unhappy people more de
worthy father. This just gives him an
and giving them the sanctuary who
opportunity which is natural to him, and
lack at the present time.
1 believe that he will avail himself of it.
The hon, Member for Nel
It is an opportunity which will be fully
asked me to consider van
Regraded Unclassified
1491
Supply Committee-
I MARCH 1944
Diplomatic etc. Services 1492
he made, and, in particular, the possi-
bility of making a new declaration which
Cheltenham and the hon Member for
he described, I think, as a call to the
Nelson and Colne stressed the fact, as it
seened to them, that this must be so and
peoples of Europe from the heads of the
that the Inter-Governmental Committee
United Nations. Certainly that will be
cannot be up to its job because the Presi-
considered, but in the meantime I would
remind the hon. Gentleman and my hon.
dent of the United States has just
recently created the War Refugee Board.
Friend the Member for East Fulham (Mr.
I hope that I may be able to persuade
Astor), who also touched upon the neces-
my hon. Friends, or to persondo the
sity of giving warning, particularly to the
Committee as a whole, that that is a
satellites of Germany, that there has never
fallacy, and that the fact that the War
been any doubt about the attitude of
Refugee Board has been set up in the
opinion in this country and, indeed, of
United States is not in any serise a
world opinion, to what has been going on
criticism of the Inter-Governmental Com
in Europe under German rule and to the
mittee.
persecution of the Jews and the general
treatment of minorities and refugees. No
Mr. Silverman: No doubt the right hom
one in any of the satellite countries can
Gentleman will recognise that, when I
be in any doubt of the fact that the
advocated the setting up of machinery in
British attitude and, indeed, the world
this country paralle) to the War Refugee
attitude, towards them after the war is
Board of the United States. I Was not
bound to be affected by the way they act
doing 50 in any way as a criticism of the
in this matter of Jewish persecution. There
Inter-Governmental Committee
The
can be no doubt whatever of that, and,
point I was making was, that as the
indeed, the satellite countries are now
Inter-Governmental Committee was
getting very serious warnings through the
charged with the fate of refugees after
wireless, to which we must hope they are
they had become such, there ougly
paying due attention. I have no doubt
be governmental machinery In prd
that the Committee will vote the Supple-
the Committee with the TOW material.
mentary Estimate for this purpose, but
more than one of my hon. Friends have
Miss Rathbone: I think we all must
expressed their feeling that what we are
make il clear that none of us were
doing in voting this money, and, indeed,
criticising the Inter-Governmental Com-
what the Inter-Governmental Committee
mittee when speaking al the War Refugee
can do, is not really sufficient for the
Board. The Inter-Governmental Com-
problem. I was, incidentally, glad that
mitter, because it is inter-governmental,
the hon, Member for Nelson and Colne
must depend upon the actions of the
dissociated himself from the criticism of
Governments represented upon it, and
the Inter-Governmental Committee which
therefore. both Governments should have
the hon. Member for Cheltenham (Mr.
their own separate maddinery In dealing
Lipson) made earlier. I am sure that that
with the work. Such machinery would
criticism was not in any way justified
supplement and not supersedo the Inter-
and that the Members of the Committee
Governmental Committee-
are treating this matter with just the
Mr. Law: I am afraid that I must have
seriousness and sincerity which the hon.
expressed myself badly. and I apologise
Gentleman himself would require.
to hon. Members and to the Committee
My hon. Friend the Member for the
for doing so. I did not really mean to
English Universities (Miss Rathbone)
imply that they had said that the in-
took the same point of view as the hon,
stitution of the War Retuge Board was
Member for Cheltenham. She, too, felt
a criticism of the Inter-Gove remental
that the machinery of the Inter-Govern-
Committee. but I did nead to imply, and
mental Committee was not enough. She
I think it is clear that what I am going
compared it to a stage coach when what
to say now is a true representation of
she wanted was a Rolls Royce. She
what they said, that, in their view. the
criticised the smallness of the present
institution of the War Refugee Board
of the Committee in London and
showed that there was a gap which had
from the size of the office and
to be filled and which the Intertiover
at of typists the theory that the
mental Committee was not filling, 11
mental Committee was not
not think that even that criticism is
She, the hon. Member for
altogether justified.
D :
Regraded Unclassified
1493
Supply:
Committee--
HOUSE
Diplomatic
1454
Mr. Lipson: Did not the right hon.
Gentleman himselt say that the work of
such a body in this country, here la
the Inter-Governmental Committee Was
already a Cabinet Commider
not suiticient by itself to deal with this
with these matters, and HER
problem?
Committee has at its dispo-al aa relabis
trative >tall in the form of No ki Que
Mr. Law: Yes, Sir, and it the hou.
Department of the Foreign Office
Member nad had a little more patience In
really have the substance of who
would have tound that I was going to
President of the United States has (ist
repeat exactly that argument. I spoke
instituted, in the -hape of the Wat
earlier in the Debate about the necessity
Refugeo Board, For constitutional
for international co-operation in these
trasins, I do not see how we could intice
matters, I think every Member
the -tructure of that Board, and, the
would agree that there are some matters
practical reasons, I cannot or that we
which can be handled far latter by an
should cain any advantage from imitating
inter-governmental body of this kind than
it.
by any particular Government, but that
Miss Rathbone: One thing that struck us
does not at all rule out the necessity that,
very much was that the American Roard
as well as international action, there has
had Il while-time executive director, who
to be national action in these
was stiretly in tench with three Socre-
For that reason, His Majesty's Govern-
taries of State and had diretaces to the
ment welcomed most heartily the
President. Has the Refugee Department
institution of the War Refugee Board in
of the Foreign Office access to Ministers
the United States, and We shall be willing,
and to the Prime Minister in the sume
and indeed anxious, to give that War
way?
Refugee Board, as a part of the United
States administration, our very warmest
The Chairman: We cannot en into the
support and sympathy. We are working
details of this organization, The rivid
on all these matters in the closest
hom. Gentl-man Ins said quite sufficient
relations with the United States adminis-
about it.
tration, I do not know whether it is
Mr. aw: Micht I an-wer, in a sentence,
generally known among hon. Members
what the hear, Lady has askid? We have
that we have recently sent instructions to
really got exactly what who wants. We
every one of our missions abroad likely
have a full time administrative staff, not
to be involved in rolugeo matters that
in the persons of -ingle directors, but in
they should seck out and collaborate with
the shape of the staff of the Refusers
their American opposite numbers YYYY
Department of the Foreign Office That
refugee matters to the fullest extent in
staff is directly re-ponsible to my right
their power.
hon. Friend and through him, to the
I know that I cannot go very far in
Cabinet Committee, I do not think there
discussion of the War Relugee Board
really i- the practical difference that some
without transgressing the Kuang which
hon. Members imagine there to be.
you have given, Major Milner. On the
I do not think Hate were any other
other hand, there has been such a great
points misel in the Debate. T think the
deal said about the War Retugee Board
Committee has made it abundantly clear
and so many appeals have been made to
den il want- Ce- work of reserve for these
the Government here to institute a similar
infortunate people to be proceeded with
body in this country that I hope 1 may,
with the utimet possible visour and dis-
without getting into trouble, just touch
patch. I can Jesufe the Committee that
upon that aspect of the matter. I du not
Itis Maje-ty's Government are prepared In
think that hon. Members who have raised
d., everything they possibly can to Ind a
the question ot the Joint Refugee Board
solution of this problem, in co-operation
quite realise the constitutional difference
with other mations where that is necessary,
between this country and the United
and individually as a Government where
States. Under our system of ministerial
that is possible.
responsibility it would, in fact, be impos-
sible for us to institute an independent
Question put, and agreed In,
body which would control Ministers and
Resolyed:
heads of other Departments outside it;
that a Supplementary
in fact, there is not the same need for
be granted to
Regraded Unclassified
1495
Givil Estimates
I MARCH 1944
Civil Estimates
1496
the charge which will come in course of pay.
CLASS VI.
ment during the year ending on the 31st day of
March, 1944, for the expenses in connection
MINISTRY OF AGRICULTURE AND
with His Majesty's Embassies, Missions and
FISHERIES
Consular Establishments Abroad, and other ex-
penditure chargeable to the Consular Vote:
4. -- That a Supplementary sum, not exceed-
certain special grants and payments, including
Ing (10, be granted to His Majesty. to defray
grants in aid; and sundry other services."
the charge which will come in course of pay-
ment during the year ending on the 31st day of
March, 1944. for the salaries and expenses of
CLASS V
the Ministry of Agriculture and Flaberies, and
of the Royal Botanic Gardens, Kew, including
OLD AGE PENSIONS
grants, grants in aid and expenses in respect
Resolved:
of agricultural education and research, eradica-
tion of diseases of animals, and improvement
" That a Supplementary sum, not exceeding
of breeding, etc., of live stock, land settle-
£150,000, be granted to His Majesty to defray
ment, improvement of cultivation, drainage,
the charge which will come in course of pay-
etc., regulation of agricultural wages, agricul-
ment during the year ending on the 31st day
tural credits, and marketing: fishery organisa-
of March, 1944. for the payment of Old Age
tion, research and development, control of
Pensions, pensions to blind persons, and for
diseases of fish, etc.; and sundry other services
certain administrative expenses in connection
including certain remanet subsidy payments."
therewith."
DEPARTMENT OF AGRICULTURE FOR
Resolutions to be reported upon the next
SCOTLAND
Sitting Day; Committee to sit again upon
5. TL That a Supplementary sum, not exceed-
the next Sitting Day.
ing (8 520. be granted to His Majes'y, to defray
the charge which will come in course of pay-
ment during the year ending on the yet day
of March, 1944. for the salaries and expenses
REPORT [IIth February]
of the Department of Agriculture for Scotla
including grants for land improvement,
Resolutions reported:
cultural education, research and marketing, es
penses in respect of regulation of sericultural
CIVIL ESTIMATES, SUPPLEMENTARY
wages. certain grants in aid. and remanet sub-
ESTIMATE, 1943
sidy payments.'
STATE MANAGEMENT DISTRICTS
CLASS II
b. That a supplementary sum, not exceed-
DOMINION SERVICES
ing (10, be granted to His Majesty. to delray
1. " That a Supplementary sum, not exceed-
the charge which will come in course of pay-
tng (10. be granted to His Majestv. to defray
ment during the year ending on the list day
of March, 1944. for the salaries and expenses
the charge which will come in course of pay.
of the State Management Districts, including
ment during the year ending on the 31st day
the salaries of the central office, and the cost
of March, 1944. for sundry Dominion services,
of provision and management of licensed
including certain grants in aid, and for es-
penditure in connection with Ex-Service Men
premises."
CLASS X
in Eire, and for a grant in and to Eire in
respect of compensation to transferred
MINISTRY OF AGRICULTURE AND
officers."
FISHERIES (WAR SERVICES)
DEVELOPMENT AND WELFARE (SOUTH
7: That a Supplementary sum, ent EX-
creding (10, be granted to Ills Majesty, to
AFRICAN HIGH COMMISSION
defray the charge which will come in crigine of
TERRITORIES)
payment during the year emiling on the just
2. That a Supplementary sum, not exceed
day of March, 1914. for the cont of the war
services of the Ministry of Agriculture and
(20,800, be granted to Hh Majesty to detray
Fisheries."
the charge which will cume in course of pay.
ment during the year ending on the fint day
MINISTRY OF AIRCRAFT PRODUCTION
of March, 1944. for the development of the
resources of the South African High Com-
8. That a Supplementary sum. not ex-
mission Territories and the wellare of their
ceeiling (to, be granted 147 His Majesty, to
peoples."
defray the charge which will cous in en une of
paym- nt during the year ending in the LINE
CLASS V
by nt March, 1941. for the salaries and ex-
prives of vise Mini-try of Aircraft de Dear
SUPPLEMENTARY PENSIONS
MINISTRY OF FUEL AND POWER
That a Supplementary sum. not incred-
20,000, be granted ... 11b Majoriv, to
9. IN That is Supplementary pame, not
charge which will come for course of
cerding (10 be granted to His Majesty, to
ting the year ending on the 31ml
defray the charge which will CLUBIP in course
for the payment of Supplement
All payment Juring the-year ending on the
certain persons in receipt nl
31st day of March, 1944, for the salaries and
or Willows" Pensions.
expenses of the Ministry of Fuel and Prover
Regraded Unclassified
1497
Civil Estimates
HOUSE OF COMMONS
India Bill [Lords]
MINISTRY OF HEALTH (WAR SERVICES)
1498
10. That a Supplementary sum, not ex-
and other non-effective annual allowances,
additional allowances, gratuities, compassion-
coeding 610, be granted to His Majesty, to
defray the charge which will come in course
ate allowances and supplementary pensions in
respect of civil empoyment.
of payment during the year ending on the
gist day of March, 1944, for the cost of the
CLASS I
war services of the Ministry of Health."
TREASURY AND SUBORDINATE
MINISTRY OF HOME SECURITY
DEPARTMENTS
11. " That a Supplementary sum, not ex-
18. That a Supplementary aum, not ex-
ceeding (10, be granted to His Majesty, to
ceeding (6,030, be granted to His Majesty, to
defray the charge which will come in course
defray the charge which will come in course
of payment during the y, ending on the
of payment during the year ending on the
jist day of March, 1944. fo. be salaries and
31st day of March, 1944. for the salaries and
expenses of the Ministry of Howe Security.'
other expenses in the Department of His
Majesty's Treasury and Subordinate Depart-
MINISTRY OF SUPPLY
ments, and the salaries and expenses of certain
Ministers appointed for special duties."
12. That A Supplementary sum, not ex-
ceeding (10, be granted to His Majesty, to
Resolutions agreed to.
defmy the charge which will come in course
of payment during the year ending on the
just day of March, 1944. for the salaries and
expenses of the Ministry of Supply. including
INDIA (ATTACHMENT OF STATES)
the expenses of the Royal Onlimnce Factories.
BILL [Lords]
MINISTRY OF WAR TRANSPORT
Order for Second Reading read.
13. That a Supplementary sum, not ex-
The Attorney-General (Sir Donald
ceeding (10, be granted to His Majesty, to
Somervell): I beg to move, That the
defray the charge which will come in course
Bill be now read a Second time."
of payment during the year ending on the
just day of March, 1914. for the salaries and
This Bill is concerned with the parts
expenses of the Ministry of War Transport.'
India known as Kathiawar and Gujen
MINISTRY OF WORKS (WAR SERVICES)
in which, together with Inrer Indian States
with rull administrations, there are 7 very
14. That A Supplementary sum, not PS-
creding (10, be granted to His Majesty, to
large number of small, and in some cases
defray the charge which will cure in course
very small areas described as States,
of payment during the year ending un the
though I think it would probably be more
31st day of March, 1944 for the cost of the
accurate in the use of language to describe
war services of the Ministry of Works."
them as estates. They are scattered.
DEPARTMENT OF AGRICULTURE FOR
Their number is about 400 and the total
SCOTLAND (WAR SERVICES)
population is some 800,000, Forty of
them are less than a square mile in area,
15. That a Supplementary sum. not
conling Liv. be granted to His Majesty. fri
and more than half are about the size of
defray the charge which will come in course
an ordinary rural parish-seven, eight or
of payment during the year ending on The
nine square miles. The problem as to
jist day nf March, 1014- hir the par of the
bow these areas can best be administered
war services of the Department of Agriculture
for Scottant."
so that those who live in them may have
CLASS Il
the advantages in such matters as educa-
tion, health services, communications.
IMPERIAL WAR GRAVES COMMISSION
and su on which individually owing, as
Hr. That a Supplementary suin. - PM
the House will see, to the size of the areas.
cerding 1,90% for grand DI His to
delner the charge which will an -----
they camed of conree provide for dont
of payment thring the year ending the
selves, has engaged for sume years the
301 die - - March, 1111. for emplo
adention of the Viceroy in his capacity
and expenses 1.1 The Inderal War - Com
- Crown representative,
mission, inc inling of Emi in the
United Runglom and 4 27.01 must"
The for submitting this 168 to
CLASS VIII
Parfament is a rycent decision in the local
court which is called the Court of
SUPERANNUATION AND RETIRED
Judicial Commissioner in which apr
ALLOWASCES
from courts e-rablished by the
17. That a supplimentary sure, BM ON
representative her Have small
In granted to n. to
heart This Juli lat G
EXM Pin charges who will TYTHE in LIBITS:
of proment turing they year emilier on the
Come Unit the Ht
11.1 devent March MAL for Lanndation
Vision had been taking
277
TREASURY DEPARTMENT
INTER OFFICE COMMUNICATION
M
DATE
TO
Secretary Morgenthau
APR 21 1944
FROM
Mr. Pehle
I am attaching herewith a copy of
the report of the War Refugee Board for April 10
to 16, 1944.
Attachment. st. in S
278
Developments during the week of
April 10 - 16, 1944
1. STATEMENT ON AXIS ATROCITIES
Ambassador Steinhardt has advised that the President's
statement of March 24 was publicized in the Turkish and
Balkan press and on the radio, and that he has been in-
formed it made a deep impression on the people of the
Balkan and central European countries. It has been
suggested to Steinhardt by Bulgarian, Hungarian, and
Rumanian sources that the President's statement be broad-
cast in all Slavic and European languages at least once
a day by the Algiers and American radio stations. Since
a great many people in the Balkan area do not have radios,
Steinhardt also suggested that pamphlets containing the
President's statement be dropped from Allied planes on
bombing missions over Europe.
The British Foreign Office has advised Winant that on and
since the issuance of the British statement of March 30
by Mr. Eden, similar in content to the statement of the
President, the British have been taking action paralleling
our own in the psychological warfare field by broadcasting
their statement in all foreign broadcasts, particularly
for the purpose of having it come to the notice of the
satellite governments and their people.
2. COOPERATION WITH OTHER GOVERNMENTS
(a) Neutrals
(i) Spain
In response to our specific plan of operations
in Spain to further the evacuation of refugees to and through
that country, recently proposed to Hayes, the Ambassador
has informed us that he feels no such plan should be put
into effect until it becomes apparent that our efforts to
stimulate the influx of refugees into Spain will render
insufficient the facilities now existing for their care.
According to Hayes, the latter facilities in the form of
Blickenstaff's organization are adequate to cope with
279
- 2 -
present problems and have the support of the Spanish
Government, which Hayes believes would look with disfavor
upon the plan outlined by the Board.
With respect to the rejection of certain refugees
who had applied for admission to Camp Lyautey, by the French
authorities, we have advised Ackermann to use his own
judgment in the matter of pressing the French to admit
those rejected refugees who had been in Spain since prior
to 1933. The French have made some concessions in their
policy regarding admissibility to Lyautey as a result of
our representations and it is felt that it may be unde-
sirable to press them further in this matter.
In an effort to induce the Spanish and Portuguese
Governments to grant asylum to additional refugee children,
instructions have been sent by the State Department to
our Missions at Madrid and Lisbon, similar to the instruc-
tions recently transmitted to our diplomatic representa-
tives in Switzerland, providing for the issuance of 1,000
immigration visas to refugee children from France, who
arrive in Spain and Portugal on and after January 1, 1944,
and before July 1, 1944.
(ii) Portugal
Dr. Robert C. Dexter has accepted the appointment,
approved by Minister Norweb, as the Board's Special Repre-
sentative in Lisbon and as Special Attache to the Legation
on war refugee matters.
(iii) Sweden
About two months ago we were advised by Minister
Johnson that, although the Swedish Government had been
urged to make a public appeal to Germany to permit refugee
children to come to Sweden from Poland, it had not taken
action on the ground it was clear that Germany would reject
such an appeal, if made. We subsequently received a report
from London indicating that circumstances would appear
to be favorable at this time to encourage the Swedish
Government to request Germany to release up to 20,000
280
- 3 -
refugee children of all nationalities. Accordingly, we
have drafted a cable to Johnson which is pending at State,
asking him to approach the Swedish Government and request
that it take such action. We are pointing out to Johnson,
for the information of the Swedish Government, that such
an appeal should not now prejudice the possibility of
refugees escaping unnoticed, a fear previously expressed
by the Swedes, since the evacuation of refugees from Den-
mark has now been completed, and stating that we would
undertake to meet the Swedish request made in this connec-
tion in 1943 with respect to assurances as to the eventual
evacuation of the children from Sweden, the delivery of
additional foodstuffs for their assistance while in Sweden
and the furnishing of financial assistance to aid in their
maintenance while there.
(iv) Turkey
On April 7 the Bulgarian "S.S. Maritza" arrived
at Istanbul from Constanza with 244 Jewish refugees.
Turkish authorities agreed to permit this group to land
and have furnished them with rail transportation to
Palestine although, according to Steinhardt, only a few of
the refugees had Turkish visas and Palestine certificates.
We have also received word from Steinhardt that the "S.S.
Bellacitta" was expected to sail from Constanza on April 9.
The Turkish Ambassador has advised us that it is
his understanding that his government is no longer in-
sisting upon a guarantee to replace the "S.S. Tari" in the
event of loss with & passenger vessel but that it will
accept a guarantee of & cargo ship. The governments of
Switzerland and Sweden and the Holy See have been asked to
support the request of the International Red Cross for a
German safe-conduct for the "S.S. Tari." We have been
advised by our Mission at Stockholm that the Swedish
Minister to Berlin has been instructed to support the IRC
request for safe-conduct for this vessel. The Russian
Ambassador at Ankara has informed Steinhardt that his
government is granting safe-conduct for the "S.S. Tari.'
Although the signing of the charter party for the "S.S.
Tari" should be delayed as long as possible until more
definite word with regard to German safe-conduct is
281
- 4 -
obtained, we are authorizing Steinhardt to use his own
judgment in this matter and to charter the "S.S. Tari"
when and if he deems it advisable.
We have received 8. communication from Steinhardt
that a member of the Swedish Legation at Ankara has
expressed the belief that a Swedish vessel, "S.S. Barda-
landa" now in the eastern Mediterranean, might be made
available to transfer refugees from Constanza to Haifa.
Steinhardt stated that this ship could be used in addition
to the "S.S. Tari" and requested that we approach the
Swedish Government on the matter. The "S.S. Bardalanda"
is one of the Swedish vessels engaged in the Greek relief
program and we are cabling Winant requesting that he take
up with British Government the use of this vessel since
our previous efforts to obtain the diversion of Swedish
vessels engaged in Greek relief were opposed by the British
who apparently did not wish to have any of these ships
diverted for refugee evacuation. If Winant obtains the
approval of the British Government to the proposed use of
this vessel, he will then take up our request with the
Swedish Ambassador in London, also asking the Swedish
Government to obtain a German safe-conduct for the "S.S.
Bardalanda."
Steinhardt also advised that, since there
apparently were a sufficiently large number of refugees to
justify the use of ships in addition to the "S.S. Tari,"
and, since the obtaining of a German safe-conduct for the
"S.S. Tari" is uncertain, that the JDC representative at
Lisbon should resume and attempt to conclude his negotia-
tions for a Portuguese vessel. The JDC has cabled its
representative at Lisbon to this effect and we have asked
Norweb and Dexter to give him all possible assistance in
his effort to obtain a Portuguese ship for evacuating
refugees from Rumania.
(b) Yugoslavia
Ackermann has recommended that Saxon, who has just
returned to North Africa from Bari, be recalled to Washing-
ton at once to review the details of the refugee situation,
282
- 5 -
particularly the possibilities of rescue operations in
and through Partisan territory. The Partisan representa-
tives, according to Ackermann, claim to have done much
already in this direction but they are handicapped by
lack of ships, supplies, and money.
(c) India
A report has been received from our Mission at New
Delhi to the effect that the standing finance committee
of the Indian Legislative Assembly has approved the pro-
posal to pay India's contribution toward the administration
expenses of the Intergovernmental Committee. India has
accepted the invitation to become & member government sub-
ject to approval by its Legislative Assembly. No reply
has as yet been received from the government to our
Mission's approach as a result of the instructions con-
tained in the circular airgram of January 26. Our Mission
believes, however, that the Indian Government intends to
limit its assistance in refugee matters to the payment
of India's share of the administration expenses of the
Intergovernmental Committee.
(a) Latin American Countries
In an endeavor to induce the Latin American Republics
to give assurances to Switzerland similar to those we have
given by means of the instructions issued to the U. S.
Consular offices in Switzerland regarding the issuance of
immigration visas to refugee children arriving in Switzer-
land, cables have been despatched to our Missions in Brazil,
Panama, Cuba, Dominican Republic, Colombia, Peru, Chile,
Uruguay, Mexico, Costa Rica, El Salvador, Guatemala, Hon-
duras, Nicaragua, Ecuador and Paraguay, requesting that
the governments of these countries give such assurances
to the Swiss Government. Those Latin American governments
which do not have consular representatives in Switzerland
qualified to issue visas are being advised that U. S. Con-
sular offices are prepared, if they so desire, to issue
such visas on behalf of the respective Latin American govern-
ments. We are also advising the Latin American governments
that the Special Representative of the War Refugee Board
attached to the American Legation at Bern will be pleased
283
- 6 -
to cooperate with the diplomatic and consular offices
and the governments of the Latin American Republics.
(e) Canada
In an effort to obtain action by the Canadian Govern-
ment parallel to that taken by this government, we have
cabled the Embassy at Ottawa asking that the appropriate
officials of the Canadian Government be advised of the
instructions which were recently issued to United States
Consular offices in Switzerland, authorizing the issuance
of 4,000 immigration visas to refugee children arriving
in Switzerland with the view of facilitating by such
issuance the escape of additional refugee children to
Switzerland and suggesting that the Canadian Government
take similar steps with regard to 1,000 children. Canada
had previously expressed its willingness to accept 1,000
refugee children from France.
3. SPECIAL PROJECTS
(a) Internees in Occupied Europe holding Latin American
Passports.
Reports from Switzerland indicate that 238 Jews who
had been interned at Vittel have been evacuated to an
unknown prison. This was apparently done upon the ground
that they possessed only accommodation passports issued
by certain Latin American countries and consequently they
were not eligible for exchange for German citizens in
Latin America. Reports were also received that the Span-
ish Government had been requested by the Germans to inquire
into the validity of the Latin American passports held by
these persons and that the Latin American governments had
denied responsibility. The private agency making these
reports stated that only by assuring the Germans that àn
exchange is being prepared for these people could they be
saved. We have cabled Harrison that it is essential that
German doubts as to whether these persons are exchange
material must be promptly and effectively dispelled and we
have asked him to request the Swiss to use their good
offices to inform the Germans that this government is
284
- 7 -
undertaking discussions with Latin American countries for
further exchanges of Germans in the western hemisphere
for persons in German-controlled territory; that this
government considers all internees who were at Vittel to
be eligible for such exchange and that the Germans should
be advised that in the meantime we expect these persons
to be accorded the same treatment which Germany expects
to be accorded to her citizens in the western hemisphere.
Cables to our Missions in Costa Rica, Ecuador, El
Salvador, Haiti, Peru, Nicaragua, Venezuela, and Paraguay,
have also been despatched. We are asking that these
governments be asked to give their approval to this
government's approaching the German Government through
appropriate channels with a view to initiating such ex-
change negotiations. We also are requesting these Latin
American governments to themselves approach the German
Government through the protecting power with the demand
that all persons claiming their citizenship on the basis
of passports or consular documents be accorded the same
treatment as that given to prisoners of war under the
Geneva Convention.
We have also cabled our Embassy in Madrid requesting
it to report to the Spanish Government our vital interest
in this matter and the pending discussions with the Latin
American countries regarding a further exchange of civi-
lians with Germany, setting forth the position of this
government in the matter and requesting the Spanish Govern-
ment to act at once to correct the impression which may
have been created in Germany that there is & lack of
interest on the part of the Latin American countries in
the treatment of these persons who hold documents issued
in the names of such countries.
We have also asked both the Swiss and Spanish Govern-
ments to make every effort to have the 238 persons, removed
from Vittel, returned thereto.
285
- 8 -
(b) Jewish Labor Committee Program for Evacuations
from France.
Upon the recommendation of the Board, a license was
issued to the Jewish Labor Committee permitting its repre-
sentative in Portugal to carry on relief and evacuation
operations in enemy territory. An initial remittance of
$10,000 was authorized to begin operations designed to
rescue persecuted persons from France.
Intruce
286
EMBASSY OF THE
UNITED STATES OF AMERICA
Buenos Aires, Argentina,
14547
April 21, 1944
Subject: Situation in Argentina as regards Relief and
Rescue of Jews in Europe
The Honorable.
The Secretary of State,
Washington.
Sir:
1/
I have the honor to transmit herewith & memorandum
prepared by Mr. John F. Griffiths of the Embassy staff
in which an attempt is made to reply to the inquiries set
forth in the fourth paragraph of the Department's circular
airgram of January 26, 7 p.m.
In brief, it may be said that the consensus of
opinion among persons and organizations interested in
the rescue and relief of Jews is that as long as the
present Argentine governmental regime remains in power
it will be useless to look to the Argentine authorities
for any assistance whatsoever in reaching a solution of
the problem.
Enclosure:
Respectfully yours,
memorandum
840.1
13/ Edward L. Reed
KIR:wrd
To Department-in original.
287
Air Mail
(Enclosure No. 1 to despatch 14547
of
from Buenos Aires
CONFIDENTIAL
regarding relief and rescue of
dons in Europe.)
MEMORANDUM
To
1 Mr. Reed
April 19, 1944
From
$ Mr. Griffiths
Subject 1 The Existing Situation in the Argentine with
respect to Jewish Refugees and Rescue Work
As is naturally to be supposed, the local organizations
interested in cooperating with UNRRA and other established
agencies for the resoue of victims of Nazi persecution are
now few in number, as the result of the early closure by
the June 4 Revolutionary Government of all organizations
known to harbor sympathies for the cause of the democracies.
No noticeable change in the official attitude has as yet
made itself felt.
With particular reference to organized efforts in
furtherance of the rescue of Jewish refugees, under 8.
Government that enjoys no popular support other than that
grudgingly furnished by anti-democracy "nationalists" in
whose platform hatred for Jews holds a prominent place, I
take it there is no hope for anything but official hostility.
That hostility existed during the Castillo regime, expressed
in the main by bureaucratic obstruction. To that sort of
obstruction the present Government has added positive
measures such as prohibiting public acts to raise funds,
and refusing to permit the entry of Jews into the country.
An outstanding example of official obstructions is
furnished by the history of & project to bring to the Argen-
tine 1,000 Jewish children under A years of age. President
Castillo was with difficulty prevailed upon to issue a
decree permitting that humane act, but it was provided
that the decree should be mull and void after December 31,
1943. Came the June 4 revolution and the military Government
refused to use its offices, through diplomatic action, to
seek permission from the Nazi Government to remove the
children from Germany. Came December 31, 1943 and 1,000
Jewish children who might have been rescued remained in
Germany.
288
- 2 -
In the course of the past year and so far this year,
except for the restricted purpose activities of the Sionists
(Committee to Raise Funds for the Reconstruction of the
Palestine), what Jewish rescue activities have been carried
on have been almost exclusively in the hands of two local
Jewish organizations and their activities have been limited
to the raising and transmittal of funds. Those two organiza-
tions are:
1) Central Committee (Comite Central)
2) Jewish Junta to Aid Refugees (Junta de Ayuda
Judia a Refugiados)
The "Central Committee" is 8 nation-wide organization
formed and operating under the auspices of the D.A.I.A.
(Delegacion Argentina de Asociaciones Israelitas). Most of
the funds they are able to raise, principally from small
but widely popularized subscriptions and gifts, are adminis-
tered for Jewish relief work through such agencies as the
American Jewish Congress, of New York, the Joint Distribu-
tion Committee, also in New York, and the Relief Committee
in Geneva. From time to time funds are sent directly for
use in individual cases, to help transport refugees from
some European port of exit to the Palestine, for example.
The "Jewish Junta to Aid Refugees" is a somewhat
dissident organization, limited in number and made up
mainly of a group of wealthy Jewish Argentines who insist
on determining the destination and use of the funds they
contribute. Funds raised by them since their establishment
around the first of the current year total some 60,000 pesos.
raised by the D.A.I.A. sponsored "Central Committee" and
During the year 1943 approximately 460,000 pesos were
Raise Funds for the Reconstruction of the Palestine".
upwards of 450,000 pesos were raised by the "Committee to
Probably it is known in Washington that D.A.I.A. with has
offered, to the fullest extent local circumstances permit.
clearly in good faith I believe, to cooperate
UNRRA strictly limited by the hostile attitude
That of the cooperation, present political set-up, would be principally through
the American Jewish Congress as the intermediary.
Regraded Unclassified
289
- 3 -
Plans for future activities of the D.A.I.A. and of
other agencies with similar objectives in the Argentine are
necessarily indefinite. Much will surely be done if there
comes a radical change in the Government which would doubt-
less bring with it a more reasonable attitude toward the
whole question of immigration. Until such change is brought
about, relatively little can be done.
Once made possible by governmental acquiescence,
arrangements could at once be made to handle upwards of
2,000 refugee families through the Jewish Colonization
Association alone. That association has large land holdings
in the provinces of Entre Rios, Santa Fe, La Pampa, Santiago
del Estero and Buenos Aires. I understand there are some
200,000 hectares (about 300,000 acres) available for refugee
colonists. It 1s calculated that 100 hectares for each
colonist would be a proper distribution.
Then, there is 8. sort of suburban agrarian society
known as Fomento Agrario with holdings in the province of
Buenos Aires, about 90 kilometers from the Capital where
they established, some 5 years ago, a colony called Avigdor,
peopled by German Jews. The concentration is on truck
farming, dairying and poultry raising and the normal distri-
bution of land in this case is of 2 hectares for each
colonist. I have not been able to learn how much land they
might have available for refugees.
It is quite evident, though, that with governmental
cooperation, and with the cooperation of other governments,
in the course of a few years the Argentine could absorb
millions, not merely thousands. No conceivable political
change would make possible the willing acceptance of a very
large proportion of Jews among those proposed millions,
though.
J.F.G.
230
any - 644
Camberra
This telegram must be
paraphrased before being
Dated April 31, 1944
e municated to anyone
other than & Government
Rec'd 10:25 Malls
Agency.
(BR)
Secretary of State,
Washington.
48, April 21, 11
The Legation has sent a formal note to the mini-
stor for External Affairs stressing the urgency of
the refuges question which has also been discussed
formally with members of the Department of Internal
Affairs (reference Department's tolegram grea yo. 40 of
April 14, 10 Mallo embodying & nessage from the War
Refugee Board). & reply stating the position of
the Australian Government is premised at as early a
date as possible. Is however, anticipate considerable
delay as questions raised involve basic governmental
policy on sigration. The duties of the Inter-Govern-
mental Committee referred to in By airgram No. A=6 of
February 17, 1 P.M. do not include var tim relief
problems. The immediate question met be referred to
the MinhatperMinister for the Interior who will probably wish
to take it to babinet. The Prime Minister's absence
will doubtlees delay action, " I believe approach
to his is Washington sight be useful. For background
I sugget my airgram 4-36 of December 6, 1943,
1 DoBo be más svailable to the War Refugee Board.
UNSIGNED
no
291
Habana
Dated April 21, 1944
KEN-57
Rec'd 8:20 p.m.
This telegram must be
paraphrased before being
communicated to anyone
other than a Government
agency. (NR)
Secretary of State,
Washington,
401, April 21, 6 p.m.
Embassy lacks sufficient information concerning
Laredo to approve scholarship although files reveal
nothing unfavorable (Department's 344, April 18).
He is understood to be nephew of former President
Laredo Bru,
BARDEN
BB
292
CABLE TO AMBASSADOR WINANT, LONDON, FROM WAR REFUGEE BOARD
The War Refugee Board requests that you transmit the
following message to Dr. Ignacy Schwarzbart, 45 Queens Court,
London, W.2: QUOTE The question of the internees in Vittel
Titmoning Liebenau Compiegne and Belsen-Bergen is given the
closest attention by the War Refugee Board, The United States
government has requested Switzerland and Spain to inform the
German authorities that it is prepared to consider all internees
in possession of Latin American passports 8.8 exchange material.
Steps have also been taken to secure cooperation of Latin
American countries. Signed Goldmann, World Jewish Congress,
New York. UNQUOTE
April 21, 1944
11:45 A.m.
LSLesser:als 4/21/44
293
TELEGRAM SENT
GMY
April 21, 1944
This telegram must be
peraphrased before being
1 p.m.
SECRET
communicated to anyone
other than a Government
Agency. (SC-00)
AMEMBASSY,
MADRID.
1108
FOR THE AMBASSADOR FROM WAR REFUGEE BOARD
The Spanish Government has on several occasions in the past,
as the result of intercession by the Holy See whose humanitarian
efforts on behalf of the persecuted refugees of Europe have resulted
in the saving of thousands of lives, extended protection to groups
of Sephardic Jews in Axis occupied areas and has intervened with
Germany to accomplish their evacuation to Spain after release
from Concentration camps.
The War Refugee Board has now been informed that 400 such
Sephardic Jews residing in Athens have recently beeh interned in
a concentration camp. To forestall deportation to Poland and almost
certain death it is vital that these Sephardic Jews be given Spanish
protection.
You are requested to approach appropriate Spanish officials
to advise them of the situation of this group and to enlist the aid
4. of the Spanish Government in the resoue of these refugees. You are
authorised to give full assurance to the Spanish Government that
funds will be available for the support in Spain of such of these
persons as may be evacuated to Spain and that prompt action to speed
their departure from Spain to otherppleaces of refuge will be taken.
Kindly advise the Department of all developments in this matter.
The foregoing has been repeated to Bern for Tittman.
HULL
WRB :GIN:KG
WE
SE
4/20/44
294
PARAPHRASE OF TELEGRAM RECEIVED
year:
The American Imbassy. Madrid
TO:
The Secretary of State, Washington
DATE:
April 21, 1944
NUMBER: 1397
SECRET
Representations have been made by the Bubassy to the
Foreign Office covering the points brought up in number 992
NUMBER
dated April 10 from the Department, including the return
of two hundred and thirty-sight internees who have been
moved from Vittel according to a report. In number 1090
dated April 19 from the Department & Foreign Official says
that although the Government of Spain has no information re-
garding the latter report it has given assurance that it will
sttempt to learn the facts as seen as possible with a view
toward endeavoring to arrange for the return of these refugees.
That similar representations on the part of represente-
tives of other American Republics concerned will support the
demarche of the Mubassy is assumed.
HAYNS
DORINPL
4/26/44
295
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Stockholm
DATED:
April 21, 1944
NUMBER:
724
SECRET
FROM WAR REFUGEE BOARD TO MINISTER JOHNSON AND OLSEN,
AT STOCKHOLM,
War Refugee Board is gratified by the Legation's efforts
reported in your 908 and 1209 of March 16 and April 8. Please
continue watching over situation in Finland and, as soon as
sign of danger appears for Jews and central-European refugees
there, urge the Swedish Government to carry out its informal
undertaking reported in your 908, in line with its generous
performance in the case of Danish Jews, Please also take all
appropriate steps to ensure that knowledge of Swedish readiness
to admit these people is known in proper quarters in Finland,
While the Finnish situation should be clearer to observers
in Sweden than it is here, the Board is extremely perturbed
over the possibility of a sudden deterioration which would
make rescue action impossible. It fully relies on you, how-
ever, to see to it that action be taken before this group of
people is placed in jeopardy of their lives.
The Board notes that the informal undertaking reported
in your 908 deals only with 113 #ewish refugees. This figure
corresponds, on the basis of the Board's information, to the
number of Jewish refugees from Germany and Austria only. On
the basis of past events elsewhere, the Board considers that
equal danger undoubtedly threatens many additional persons.
According to the Board's information, Finland has 475 Danes,
131 Italians, 192 Norwegians, 144 Poles, 172 refugees from
other countries occupied by Germany and a local Jewish com-
munity of about 1500, of whom 940 have Nansen passports.
Clearly. in the event of increased German influence, local
and refugee Jews and many non-Jevish refugees would be equally
threatened with Jewish refugees from Germany and Austria,
You are requested therefore to ask that Swedish undertaking be
extended to cover all of these persons. You will note that
the total is less than half the number of the Danish Jews
accorded refuge in Sweden,
Please keep the Board informed regarding result of your
action.
This is WEB Stockholm Cable No. 3.
296
CABLE TO MINISTER JOHNSON AND OLSEN, STOCKHOLM
Reference is made to your 1235 of April 11, War Refugee
Board appreciates importance of Hellsted statement regarding
extent of danger from Gestapo to many Germans, Swedes and
others. Board is charged with rescuing QUOTE the victims of
enemy oppression who are in imminent danger of death UNQUOTE
regardless of religion, nationality or stateless status.
Accordingly. Board would warnhy welcome Swedish action to
afford rescue to all groups in Finland which would especially
be endangered as a result of increased German influence.
The above, however, does not detract from Board's deep
concern about equal or greater danger threatening 113 Jewish
refugees from Germany and Austria and about 2600 others refesred
to in our No.
of
Board's attitude on this score
is fully explained in aforementioned cable, and Board fully
associates itself with your representations reported in your
1209 of April 8.
Accordingly, the Board trusts that the Hellsted statement
is not (repeat not) intended to modify the confidential assurance
given by Boheman and reported in your 908 of March 16. Please
obtain confirmation of mid assurance and, should you consider
that danger is imminent, please press for immediate action.
Cencerning Hellsted's remark that permission to refugees
and others to enter Sweden would amount to discrediting Finnish
government, Board suggeste that you refer him and other Swedish
officials to Boheman statement reported in your 908 to the
effect that the Finnish government has itself applied for the
admission of Jewish refugees.
With respect to the questions reported in your 1235,
the Board holds that all persons referred to in our of
are in danger. It is prepared to make arrange-
ments for the evacuation from Sweden, as soon as practicalbe,
of all persons, other than Swedes, who may be accorded refuge
in Sweden, and for the maintenance in Sweden of such refugees
who cannot claim the support of their own governments.
For your information, Board has requested Gullion to
report on possibility using FideAduas escape-route to Sweden
from German-held Baltic areas, particularly Lithuania. Board....
297
- 2 -
would appreciate your view and comments as to feasibility
of such escape.
Reference made Olsen's No. 3. Board gratified by
favorable Swedish reaction to his appointment and approves
statements made to press.
This is WRB Cable No.
4a
April 21, 1944
11:45 none
298
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
The American Minister, Stockholm
TO:
The Secretary of State, Washington
DATE:
April 21, 1944
NUMBER:
1379
SECRET
According to Hellstedt Swedish visas have been authorized
for one hundred central European refugees now in Finland, as a
starter - please refer to number 1235 dated April 11 from the
Legation. It was stressed by Hellstedt that visas are being
granted for humanitarian reasons since the refugees are panicky
and not (repeat not) because the Government of Sweden believes
there is any danger.
JOHNSON
DCR:MPL
4/22/44
Regraded Unclassified
299
0013-990
Born
This telegram must be
yarephrased before being
Dated April 21, 1944
communicated to anyone
other than a Government
Rec'd 5141 P.B.
Agency. (32)
Secretary of State,
Washington.
2580, April 21, 8 pollo
My telegram No. 2,320 of April 14.
It is reported from Budapest that Hungarian
Jewish Commissioner Indro declared there April 18
that while san are not new to be concentrated into
a ghetto they will be accommedated in districts where
Terreristic aviation attacks are to be expected".
Bangarian press early in April announced the evacus-
tion of residential quarters in the exposed factory
and other districts of the capital and its suburbs.
Medrod statement which has been publicised in the
German press apparently refers to such areas and is
intended to make prepaganda use of the some 400,000
dave now resident in the Imagarian capital.
HARRISON.
your
300
Regraded Unclassifie
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Born
TO:
Secretary of State, Washington
DATED:
April 21, 1944
NUMBER: 2561
CONFIDENTIAL
Department's cable no. 1168 dated April 6 is referred
to herewith.
Following is substance of message from Blochlaine for
Andre Mayer:
Here there has been great interest in the President's
statement but I agree with you that an effort must be made
to give it more effect. Swiss Government's official atti-
tude concerning Jewish and non-Jewish refugees is as you
state, but at times there have been deviations from rules
under pressure of public opinion, thanks particularly to
tireless efforts of organizations and individuals. There
is such arbitrariness and secrecy involved, and it is impossible
to secure exact statistics.
For time being, apparently, rejections are not number-
our, principally because of few arrivals due to danger in
approaching heavily guarded frontier and travel difficul-
ties, but restrictive policy undoubtedly has heretofore pre-
vented arrival of great number of wretched Jews of both
sexes who are now deported, imprisoned or dead and it still
acts as deterrent on efforts to escape.
Various persons concerned with the problem have been
contacted by no and I believe it is useless to form new
group here or stir up new movement here. There is being
done or tried everything possible that can be done within
the country.
United Nations Governments, to expect radical change
in situation, should 1. Refer to Government of Switserland
to take over substantia, share of cost of upkeep of now
refugees. 2. Give Swiss Government formal undertakingthat
with this reasonable length of time after and of war all
refugees entering after given date will be removed.
The first point is of secondary importance. Point
number two is essential and is very core of the question,
according to competent advice. We have reason to believe
dueed to its frontiers either under pressure of opin-
that, with such guarantee, Swise Government could be in-
ion or of open its own accord. The time for such initiative to
have effect apprrrs ripe.
301
TELEGRAM SENT
This telegram must bE
April 21, 1944
paraphrased before being
communicated to anyont
1 p.m.
other than a Governmental
agrody. (BR)
U.S. URGENT
AMERIBASSY,
MOSCOW.
980
FOR TE AMBASSADOR FROM THE SECRETARY OF THE TREASURY
I am most grateful for your help in securing a favor-
of last night)
ablo reply. [Referense yours 1380 YORK
Please deliver this personal message to the People's
Commissar for Foreign Affairs and the People's Commissar
of Finance.
UOTE I wish to express my sincere thanks for your deci-
sion to have the experts of the Soviet Union associate
themsolves with the rinciples of the Joint Statement of
experts recommending the establishment of an International
Monstary Fund. We regard the publication of the Joint
Statement as of the greatest importance. It is further
evidence that our two countries are determined to work
side by side in the solution of international monetary
and financial problems.
Regraded Unclassified
302
-2- #980, April 21, 1 p.m., to Moscow.
V.
I an in accord with the circumstances mentioned in
your message. I assume you will instruct the technical
financial delegation of the Soviet Union to associate
themselves with the principles of the Joint Statement.
They have already been informed of the substance of
your message. END QUOTE
HULL
(EGC)
FIA :EGC I ja
4/21/44
Regraded Unclassified
303
NOT TO BE RE-TRANSMITTED
SECRET
COPY NO
OPTEL No. 128
Information received up to 10 ..M. 21st April 1944.
1. NAVAL
Home Watern: 18th/19th One of H.M. Destroyers and 2 E.T.B.'s
damaged It number of E -Boato suspected of mine-laying
off ISLE OF IGHT. 20th/21st. Mine laying by aircraft oft HUMBER subpected.
Mediterranean Hostile shelling in ANZIO port area increased on 18th
and 19th. 0.8. Destroyer Intercepted 4 E-Bosts West
of ANZIO on 20th, one probably sunk, another damaged.
2. MILITARY
Russia hussians have repelled heavy German attacks on beldgehoad
S.n. of NARVA and there has also been heavy fighting
S.W. of STARNOPOL.
Burma In ARAKAN our troops have captured a hill feature 3 miles
N. of 30THIDAUNG. Jupanese attacks on our positions 25
miles S.M. of IMPHAL and near IMPHAL-TIDDIM road have been repulsed.
3. AIR OPERATIONS
Testern Front 20th Spcorted Fortresses and Liberators (9 missing)
dropped 1640 tons through ground have on militory
objectives in Northern FRANCE.
bombers attacked coastal :defences and military objectives*
CAMBRAI in sirfields, 4 enemy aircraft dostroyed in air and 4 on ground.
NORTHERN Medium FRANCE. Other aircraft bombed ctilway centros at CREIL and
tons Of a and set fice to 3 epcort. vossels. 20th/21pt, aircraft
5-chip convoy off FRISIAN ISLAND, Beaufighters sank A
2,000 ship COLOGNE 379, railyay dopote PARIS LA CHAPELLE Intrudors 269, 36, OTTIGNIS
desp&tched: 196, LENS 175, CHAMREE 14, BERLIN d, Romber support 26,
Sea-mining 38, Loaflets 32.
Proliminary reports indicate 16 bombarn miscing, rosults apparently
aatisfactory.
aircraft flo over scattered inland 80085 without
coordination, About 30 enclay in YOKSHIRE, LONCOLNSHIRE and SUFFOLK, NORFOLK cousing and plight
48062
apparent damage. Later 6 believed Intruders operated briefly over
SUFFOLK. 2 enemy aircraft destroyed by night fighters.
Italy 20th Fortrorses deopped 91 tons on ANCONA and 138 tons
VENICE Hurbour. Liberators deopped 66 tons on bridge UDINE
it F.JID, 41 tons on on MESTRE, 285 tons en доск at MALFALCONE and in
aren, 85 tons at TRIESTE.
ТИЗМТЛАЯ
Regraded Unclassified
304
April 22, 1944
Mr. White
Secretary Morgenthau
Would you please prepare a letter for my signature
to Mr. Harriman along the same lines as the one which
you wrote to Ambassador Winant yesterday. Thank you.
Letter in for Sig. 4/26/14
Regraded Unclassified
305
April 22, 1944
Mr. White
Secretary Morgenthau
Would you please let me know whether the lend-lease
on silver to India has gone through. I also would like
to know how much silver, through one method or another,
we have let India have this year. Whitis them in 4/25/44
Regraded Unclassified
TREASURY DEPARTMENT
306/4
INTER OFFICE COMMUNICATION
MA
DATE Apr. 22, 1944
TO
Secretary Morgenthau
FROM
Mr. White HDW
Subject: Status of lend-leasing 90 million ounces of silver
to India.
We have been informed by the State Department that an
understanding has been reached with the British Government
with respect to the guarantees to be given for returning the
silver lend-leased to India to the United States Treasury.
We understand that the agreement with the British will be
kept secret.
As soon as the British sign the formal documents, the
State Department will advise the Foreign Economic Administra-
tion to put through the requisition for lend-leasing the
silver to India.
We are keeping in close touch with both the State
Department and the Foreign Economic Administration and will
be prepared to expedite the shipment of the silver to India
when the requisition is completed.
A total of 20 million ounces of silver was lend-leased
to India in 1943 and 10 million ounces has been lend-leased
to date in 1944.
Regraded Unclassified
307
as
April 22, 1944.
Dear Mr. Batt:
In the absence of the Secretary, I as
acknowledging your letter of April 20,
which enclosed a carpor of Mr. Demald N.
Nelson's regular monthly report to the
President on production performance against
materials and equipment consitments of the
Third Russian Protecol. I shall be very
glad to bring your letter and the report
to Mr. Mergenthan's attention as soon as
be returns to the effice.
Sincerely yours,
(Signed) #. S. Klotz
m
1. 3. Nots,
Private Secretary.
Mr. V. 1. 2019,
Var Production Beard,
Vashington, D. e.
KP/dbs
Regraded Unclassified
308
ORVICTORY
BUY
-
must
WAR PRODUCTION BOARD
WAR
WASHINGTON, D. C.
April 20, 1944
IN REPLY REFER TO:
The Honorable
The Secretary of the Treasury
My dear Mr. Secretary:
There is attached for your information
a copy of Mr. Donald M. Nelson's regular monthly
report to the President on production performance
against materials and equipment commitments of
the Third Russian Protocol.
Sincerely yours,
mh Daw
W. L. Batt
Attachment
Regraded Unclassified
309
ACTORY
BUY
E
-
WAR PRODUCTION BOARD
WASHINGTON, D. C.
SECRET
April 17, 1944
IN REPLY REFER TO:
My dear Mr. President:
Attached hereto is a tabulation
showing progress made during March, and
during the nine months ending March 31,
1944 towards fulfilment of Third Protocol
materials and equipment production programs
for the Union of Soviet Socialist Republics.
There is also attached a summary of the major
problems and developments which have marked
production aspects of the program during
the first three quarters of the Protocol
period.
Respectfully yours,
/e/
Donald M. Nelson
The President
The White House
Washington, D. 0.
Attachments
.RCRET
2-800P
Regraded Unclassified
310
SECRET
SUMMARY OF PRODUCTION DEVELOPMENTS IN THE SOVIET
MATERIALS AND EQUIPMENT PROGRAM IN THE
FIRST THREE QUARTERS OF THE THIRD
PROTOCOL PERIOD
I. MATERIALS
Because of the easing of the domestic materials situation, as
well as because of intensification of efforts to arrange satisfactory
delivery schedules, stated Soviet requirements for all important materials
are being met in full. Except for a few minor items, it has not been
necessary for some time to reduce a request of the USSR for a raw material
or semi-fabricated product because of supply considerations.
Shipping limitations continue to restrict the flow of several
bulky items. Aside from this, however, materials are going forward at
the rate desired by the USSR. Aluminum to the full amount requested has
been scheduled for the last half of the Protocol year. The same is true
of copper base alloys, carbon steel, alloy steel, railway materials,
ferro-alloys, and all major chemicals. Nickel, several special alloy wires,
and a few special purpose chemicals have been held under the amounts re-
quested by the USSR because of continued tight supply conditions, but even
at the case of these there has been a very substantial increase in average
monthly shipments during the past quarter and further increases are
scheduled for the current quarter.
II. INDUSTRIAL EQUIPMENT
The present status of the Third Protocol industrial equipment
program must be considered against the background of (a) the stocks situs-
tion, (b) delays in the submission of new orders, and (c) the impact of
several domestic programs, particularly the landing craft program, which
have been granted overriding priorities because of strategic considera-
tions.
lest the new industrial equipment program offered the USSR result in the
At the beginning of the Third Protocol period there was concern
accumulation of excessive stocks. Calculations which weighed the tonnage
of items held in this country as of July 1, 1943 and the tonnage of items
scheduled for delivery during the coming twelve months against prospective out
of hand in the same way that stocks of steel and certain other materials
shipping seemed to indicate that stocks of industrial items might get
had gotten out of hand during the Second Protocol period. Because of
Regraded Unclassified
311
and
- 2 -
- 3 -
this, those charged with over-all responsibility for the Russian program
were inclined to discourage application of pressurer to expedite deliver-
1es of industrial items. It vis generally felt unwise to insist upon
The general effect of these several factore was that for many
shipments at a given rate simply because such a rate had been net up in
types of equipment going to the USSR, production vas behind Protocol
the Protocol schedule, and without regard to whether the equipment thus
offers at the close of the third quarter of the Protocol period. Total
made available could be lifted.
deliveries of industrial equipment, in terms of dollar value, vere only
slightly under the amount promised, and all indications were that between
To an extent, developments have demonstrated that there was
March 31st and the end of June shipments will be increased to a point which
justification for this attitude. Despite conservatism re expediting de-
vill insure the US having made available from the over-all standpoint at
liveries, the tonnage of industrial equipment held in Ordnance and Treasury
least $431,000,000 - i.e. the amount offered in the Protocol. However,
warehouses increased from some 97,000 short toos as of June 30, 1943 to
this is due to accelerated shipmente in the case of several relatively
some 167,000 short tone as of March 31, 1944.
easy items. In spite of it, the USSA will not have received the amount
of several important items which the US promised to make available.
It should be noted, however, that a very small number of items
The detailed outlook by categories is as follower
were responsible for this situation. Of the 167,000 short tone held in
storage on March 31st, approximately 120,000 consisted of machine tools,
forging presses and hammers, power equipment, and complete industrial
Cemented Carbide Tipe and Blanks: Although there was some delay
plants. Stocke of all other industrial equipment, which included nome
in the clearance of Third Protocol orders, it was possible to work out
sixty odd categories of maintenance and replacement items indispensable
satisfactory schedules and all contracts are expected to be completed
for the operation of the industrial establishment of the USSR, totalled
by June 30, 1944.
only nome 47,000 short tons.
Small Outtine Tools: New Third Protocol orders were very slow
Of more importance in holding back industrial equipment than
-
in coming in, and considerable difficulty vas experienced in arranging
the conservation of US officials vas the delay of Soviet representa-
for placement of contracts. In several cases orders had to be shifted
tives in preparing and submitting specifications against Third Protocol
from one company to another and special expediting pressures were necessary,
offere. It will be recalled that in reports prepared by the War Produc-
The great majority of orders are expected to be completed by June 30th,
tion Board during the first half of the Protocol period attention was
but a few important ones will probably be carried over into the Fourth
repeatedly called to the necessity of requisitions being cleared Immediate-
Protocol period.
ly if adequate time were to be allowed for production cycles required for
completion of orders before the end of the Protocol period. Despite these
Measurine Toola: The same difficulties were experienced in the
and other efforts of the WPB, however, a large part of the new orders
case of measuring tools as for small outting tools. Most of these diffi-
Authorized under the Third Protocol was not cleared until December. Jam-
culties have been overcome, but it is nevertheless anticipated that & few
ary, and February. Among the items affected were electric furnaces,
ordere will be carried over and the full Protocol promise will not be not.
rolling mille and auxiliary equipment, wire drawing machines, cranes,
pumps, control instruments, small cutting toole, etc,
Abrasive Graine and Abrasive Products: Despite relatively tight
supply conditions, it vse possible to schedule ordere satisfactorily, and
This late forwarding of requisitions inevitably raleed grave
shipments at the end of the third quarter were ahead of Protocol promises.
scheduling problems, it not being possible to arrange for shipment over
A principal reason for this was the fact that all orders were cleared very
a five to seven month period the quantities of critical items which had
early in the Protocol period.
been offered for delivery over a twelve month period. This was especially
true mince a number of urgent domestic programs, all of which conflicted
Machine Tools: The Third Protocol machine tool offer was one
with Russian items in regard to componente, fabricating facilities and
of the most ambitious made by the US. It represented more than 15% of
labor, were given overriding priorities during the very months in which
total production schedules for the corresponding period in the US, How-
the Russian items had to be scheduled.
sver, the entire offer was covered by orders placed in advance of the
opening of the Third Protocol period, and, because of this, it vaa possi-
ble immediately to put the program on a sound, scheduled basis.
Regraded Unclassified
312
BECEBE
- 4
- 5 -
Through January, average monthly shipmente of machine tools
vere above the rate promised. In February and March there vus A elight
The program as finally approved included A rail and structural
falling off, largely because manufacturers were finding it necessary to
sill. & blooming mill, electrical aquipment for the above mills, fish
spread remaining orders which they had on their books in such & vay as
plate and tie plate installations, Besemer converters. hot metal mizers,
to enable than to maintain their labor supply, etc., at & level which
transfer care, coke cars, hot metal cars, turbo blowere, de-watering equip-
would insure their being in a position to take care of future emergency
cast. and foundry equipment. It is anticipated that supply of this equip-
ordere which night come in. Although this resulted in accumulative cen
sent will contribute to the recovery of the Soviet staol industry and will
liveries through March falling under the amount promised, this has caused
consequently help the USER to meet more fully its steel requirements from
little concern. Stocks of Soviet muchine tools at the and of March were
its own resources and reduce the quantity required from this country.
very large, totalling moro than 46 000 short tobs or approximately
$70,000,000. Nevertheless, it is expected that during the next three
Prosses. Forces. Harmors. and Related Equipment: Under the
months, shiphente will again increase with result that by June 30th
$30,000,000 Third Protocol program were included such items as forging
practically all orders vill have been completed.
grosson. humers, abears, bolt and out equipment, punching presses. manipu-
lators, maxi-presses, etc. Among these were some of the largest machines
Xlactric Furnaces: Although the electric furnace industry is
of this type which have ever been produced.
generally in good shape, difficulties have been experienced 1a the execu-
Fev production problems have been encountered in connection with
tion of the Russian program. The offer of $12,000,000 vas relatively
large, requiring an appreciable percentage of total US capacity. At the
the program. However, the entire program has been repeatedly est back
same time, orders were late in coming in: there vae an unexpected con-
through diversion of items to the small truck program. the malleable iron
centration in the small eise range: and certain components, notably
program, the landing craft program, and other domestic programs. In con-
instruments, fractional motors, and frequency changer ests, offered
sequence. by June 30th there probably will not have been delivered more
problems because of conflict with domestic programs. As a. result of
than $34,000,000 against the promised $30,000,000. However, stocks of
these factors, it appears likely that deliverics during the Protocol
(
squipment of this type hold on USSR account are very large, totalling as
period will fall short of the $12,000,000 promised by $2,000,000 to
of March 32st more than 25,000 tons, and it 16 felt that the rate of
$3,000,000. Navarthaless, it is falt that adequate supplies of furnaces are
shipment is adequate to seet realistic Soviet needs.
being, and vill continue to be, made available to meet shipping availabili-
Wire Praving Squipment: The $2,000,000 Third Protocol offer
ties and to take care of all reasonable Soviet requirements.
vas intended to cover saventy-seven machines which had been ordered in
advance of June 30, 1943, and thirty-five additional machines which the
Rolling Kills and Doutness. and Reminant For Blast. Hearth.
and Coke Turnaces' Total Third Protocol offers for equipment of this
USSR stated that it wished to order after June 30th.
type amounted to $26,000,000. These offers were formulated to cover &
In the case of the old orders for seventy-seven machines, pro-
specific list of squipment which the USAR had indicated that 10 urgently
duction has been in accordance with schedule and all will be completed
needed and which it was found could be scheduled for delivery during
before June 30, 1944. The dollar value involved 1a approximately $1,000,000.
the pariod May, 1943 - June, 1944. However, there were delays of several
In the case of the new orders for thirty-five machines, clearance was not
months before problems in regard to supply of the equipment vare cleared
worked out by the Soviet Purchasing Commission and the yea until February.
up by the TEA and the Soviet Purchasing Commission. As a. result, the
These ordere will consequently have to be carried over into the Fourth
VP3 found 16 necessary to notify the TRA that insufficient time remained
for ordere to be placed and fabrication completed by June 30th, It vas
Protocol period.
subsequently agreed, however, to go aboad with the program with 11 being
The $12,500,000 offered under the Third Protocol in-
understood that the equipment, with the exception of a few minor items
cluded some $7,000,000 of old orders for Treasury procured items and an
which required short lead factors, would not be completed prior to the
retimated $5,500,000 of War Department procured items. Since formulation
opening of the Fourth Protocol period.
of the Third Protocol, however, a re-survey by the War Department has -
realed that no equipment which can properly be classified "Excavator Equip-
ment" is being procured by that agency for the USSR. (Equipment which truck was
originally considered "Escavator Equipment" 1e now classified under
Regraded Unclassified
313
was
- 6 -
- 7
and tractor cranse and various construction equipment.) To all intents
Despite this, and despite difficulty in securing required bearings and
and purposes. therefore, the Third Protocol excevator program 1s not a
motore, it has been possible to arrange satisfactory schedules and few
$12,500,000 but a $7,000,000 progrem.
contracts will have to be carried over.
Even for a $7,000.000 program, numerous scheduling difficulties
Welding Equipment: The welding equipment program has gone
have been encountered. US capacity 1e almost entirely taken up by Argy,
smoothly. Schedules are satisfactory and It is expected that the full
Mary, and the British and US surface oining programs. Purther, equipment
Protocol commitment will be met without difficulty. Items being supplied
being procured for the USSR is of such nature that only two companies are
under the program are designed for repair work on barges, railways, and
capable of handling it. Because of these difficulties, it 10 expected
structural shapes in buildings. as well 48 for use in the manufacture
that It will be necessary to extend several important contracts beyond
of tanks, trucks, etc.
June 30, 1944.
Valves and Fittings: A substantially larger program than the
Cranest The actual Third Protocol program is substantially larger
$3,000,000 offered is being carried out under the Third Protocol, a
than the $22,000,000 offered. The reason for this is that many of the items
number of important orders having been accepted under the emergency
being procured by the War Department which were formerly classified as
equipment category. The program is proceeding moothly and satisfactory
Excavator Equipment" properly fall under this catagory.
deliverisa are being maintained.
Production problems of a erious nature have been encountered.
Ensuratic Tools: Third Protocol orders for pneumatic tools are
In the case of special metallurgical cranes such as Indle cranes and in-
being procured by the Var Department and it is understood that satis-
got strippere, difficulty has been experienced in securing bearings.
factory progress le being made on them. Data se to details have not
Also, after much preliminary work had been completed, Soviet representa-
been zade available by the Var Department, however, All pre-Third Pro-
tives insisted upon changes in specifications ende necessary by war develop-
tocol orders, which are being procured by Treasury, will be completed
ments in the USSR. Mining hoista which form an important part of the
before June 30th.
program, were placed on order only late in the Protocol period and several
Control Instruments and Testing Machines: Included in this
componente, notably gears and electrical equipment, have slowed down pro-
duction. For the program se 8 whole, set-backs have resulted from COD-
category of equipment are circular and linear dividing machines, universal
flicts with the rubber program and with the landing craft program. Be-
and hydraulic testers, dynometer testers, proving rings, tool makers
cause of these various factors, it la not expected that all contracts
microscopes, etc. All items will be completed and delivered by June 30,
will be completed by June 30th.
1944, except circular and linear dividing machines. Prior to the out-
brenk of the ver, circular and linear dividing machines were not pro-
Compressors. Gas Blowers. Exhancters. and Pana: The Third Pro-
duced in the US, Europe being the sole source of supply. One US company
tocol program vas not presented to the WPB until December, 1943 - January,
has developed fabricating facilities but its capacity in limited to one
1944. A few orders have only recently been submitted. Retarded deliver-
or two machines a year. The USSR has twenty-one on order. Most of these
iss have been entirely due to this delay. as the program offers no pro-
vill necessarily have to be carried over into the Fourth Protocol period.
duction problems.
Anti-Friction Bearings: An pointed out in previous reports.
the Soviet anti-friction bearings program has come into conflict with re-
Pugga: Fumps being supplied under the Third Protocol are con-
quirements of the lamine craft program, the heavy duty truck program,
sidered one of the most important items in the industrial equipment pro-
the synthetic rubber progrem and the agricultural equipment program, 0.0
gram. Included are a group of exceptionally large pumps intended for use
well as other importent domestic programs. As a result, it will not be
in the re-establishment of reservoir and water systems contaminated or
possible to produce by June 30th the $15,000,000 promised. A special
destroyed in the occupied territories, mining pumps needed for the re-
effort in being made to deliver such bearings as Soviet representatives
opening of Donete coal mines, special chemical pumps. etc. No Third Pro-
state pre most orgently needed for their var effort. but from the over-
tocol requisitions were placed until after the first of January. 1944.
all standpoint it is expected that we vill fail to neet the formal com-
sitment by some $3,000,000 to $5,000,000.
Regraded Unclassified
314
above
aso
- 8 -
- 9 -
Block Signal System: The Third Protocol program consists of a
of this type vas limited to $36,500,000. However, orders on the books
block signal system designed for 3,000 kilonsters of railways under
as of June 30, 1943 considerably exceeded this amount. Further, additional
ideal conditions or 5,000 to 10,000 kilometers under reasonably satis-
items have been approved under the emergency equipment offer.
factory working conditions. The equipment being supplied is identical
to that required for domestic use with the exception of centralizers
Deliveries under this category have been generally antisfactory.
which are peculiar to USSR operations.
Competition with other programs has delayed completion of electric motors
and other electrical equipment, but despite this, the flow of these items
Work on the system is proceeding satisfactorily and it 10 antici-
has been large. Some of the other equipment included in this category
pated that virtually all shipments from plant will have been completed
has been hald up because of difficulty in securing components. but this
by June 30th,
again has not seriously affected the situation of the USSR, ample supplies
having been nade available to meet the more pressing needs of that country.
Power Program: The Third Protocol power program consisted of
approximately $40,000,000 of equipment ordered, but not delivered, during
Altogether, through March net a total of $67,000,000 of suxiliary
the Second Protocol pariod, and $57,000,000 of new Third Protocol orders.
equipment had been shipped from plant, and it 1a anticipated that at least
$33,000,000 additional will be shipped between the and of March and June
of the orders carried forward from the Second Protocol, roughly
30th,
98% vere completed by the end of March, 1944. The items still to be de-
livared, principally boilers, spare parts, switch gear, and process pip-
ing, will all be finlabed and shipped from plant in the next few weeks,
In the case of the $57,000,000 of equipment placed under order
since July 1, 1943, it 16 expected that approximately 60% (about $33,000,000)
will be shipped from plant by June 30, 1944. Inability to complete the TO-
maining 40% 1e largely the result of re-engineering and re-designing upon
which the Russians have insisted. When the new Third Protocol program VI.I
offered to the USSR, it was anticipated that work done on plants previous-
ly supplied would make possible proceeding with production thout pre-
liminary engineering. However, because of changing conditions in the USSR,
Bussian representatives felt it necessary to ank for new specifications
in many instances. After re-designing had been completed, the bill of
materials already worked out for components, ote, could not be used for
the new plants and complete re-surveye had to be made, This resulted
in loss of approximately three months in the placing of orders for 000-
ponents and other materials. Steel plate particularly caused trouble
because space in mill schedules who lost for a period of several months.
A further cause of delay in the program was conflict with urgent domestic
programs, particularly the landing craft program.
Auxiliary Industrial Equipment: This category includes a wide
variety of equipment of which the most important are electric motors,
other electrical equipment, engines and turbines, industrial trucks and
tractore, petroleum refinery equipment, oil well drilling equipment,
comminications equipment, smelting and alloying equipment, hand tools,
and agricultural machinery. The Third Protocol offer for all equipment
Regraded Unclassified
STATUS OF MATERIALS AND EQUIPMENT PRODUCTION PROGRAMS usi. - THIRD RUSSIAN PROTOCOL a OF APRIL 1, 1944
(MARCH DELIVERY DATA SUBJECT TO ENVISION)
Pro-
Item
Unit
3rd
Made Available
Made Available
Percent of
Ratio of
Balance to be
Comments
tocol
Protocol
at Mill in U.S.A. at Mill in U.S.A.
3rd Prot.
Actual
Produced
Item
Production
Mar. 1, 1944 -
July 1, 1943 -
Program
Deliveries to
M of Apr. 1, 1944
No.
Program
Mar. 31, 1944
Mar. 31, 1944
Completed
Prot.Sched.
To Complete
as of
(Prot.Sched.=100)
3rd Protocol
Apr. 1, 1944
Prod. Program
NON-7%RIOUS METALS
Aluminus shipments to date com-
sist of 5,278 S.T. red and tab-
3 Alumisum (Inget and Fabricated)
S.9.
35,760
14,982
72,946
204
272
(37,186 Excess)
ing: 18,444 S.T. sheet; and
49,224 S.T. inget including
secondary.
% Fickel
Includes shipment on U.S. ao-
&
Pig Fickel
5.7.
3,600
300
3,900
108
144
(300 Excess)
count of 800 S.T. from U.K.
stocks.
The 274 S.T. shows as the Third
Protocol production program is
3
Wickel in Nonel Scrap
S.T.
274
o
274
100
133
o
the quantity selected by the
U.S.S.R. out of a total of 600
S.T. originally offered.
Contained sickal deliveries to
date consist of 923 S.T. is steel;
337 8,7, to nichrose wire and
o
Nickel in Steel and Other
S.T.
2,400
108
1,681
70
93
719
strip: 295 S.T. in cupro-niskel
Non-Ferrous Products
strip: and 126 S.T. in various
-
other products including pure
nickel products.
5 Molybdemum
5.7.
4,000
333
3,330
83
in
670
Electrolytic copper figures N°
for to copper contained in vari-
our miterials requiring copper
which are being supplied the
U.S.S.R. Deliveries to date
include 64,854 s.f. contained
is copper base alleys: 10,025
S.T. contained in copper goods
6 Copper, Electrolytic
S.T.
(121,400)
(13,725)
(88,371)
(73)
(97)
(33,029)
and tabes: 674 S.f. contained
in bimetal: and 12,818 S.T.
contained in vire mill products,
Is addition to the copper pro-
gram shows, the V.P.B. has más
arrangements for the supply of
16,800 S.T. of copper wire bare
during the remainder of the Third
Protocol period.
31
Regraded Unclassifie
Pro-
Item
Unit
3rd
Hade Available
Hade Available
Percent of
Ratio of
Balance to be
Consents
tocol
Protocol
at xm in U.S.A.
at mill in U.S.A.
3rd Prot.
Actual
Produced
Item
Production
Mar. 1, 1944
July 1, 1943 -
Program
Deliverise to
AS of Apr. 1, 1944
No.
Program
Har. 31, 1944
Mar. 31, 1944
Completed
Prot.Sched.
To Complete
as of
(Pret,Sched,*100)
3rd Protocol
Anr. 1, 1944
Prod. Program
NON-FERROUS METAIS (Continued)
7 Copper Base Alleys
S.f.
107,520
15,974
85,227
82
109
19,293
E Magnesium
S.T.
4,032
335
3,024
75
100
1,008
9 Zine
S.T.
13,440
1,120
10,080
75
100
3,360
11 Copper Goods and Tubes
8.7.
15,000
1,275
10,025
67
65
4,975
The third Protocol provides that
- to 269 S.f. of special -
ferrous vires my be ordered.
Until the present, hovever, only
100 S.T. have boen requisitioned.
The Third Protocol production
schedule 1a, therefore, limited
to this amount, Deliveries to
date include A S.T. of tangstes
alley wire: 2.9 S.f. of constaa-
29 Special Non-Ferrous Alloy
S.T.
100
13
90
90
120
10
tan vire: ,4 S.T. of tastalum
wire: 33.1 8.9. of alwel and
Vires
chromel vire: 15.9 S.T. of monal,
overdur and beryllium bronse
wire: 5.7 8.2. of enamelled -
gania wire; 19.8 5.7. of molyb-
denue vire: -5 S.T. of manganis
virg: 5.7 S.T. of round maganis
wire: 5-3 S.T. of hare thereo-
couple wire: and -3 S.T. of
Zenet solybdenns vire.
On urgent request of the U.S.S.R.,
the U.S. has agreed to undertake
supply of 134 S.T. is addition
to the amount originally offered
in the Protocol. Soverer, due
to AS acute shortage of chrosise
30 Nichrose Wire
S.T.
5.38
23
222
76
104
116
metal, difficulty is being -
countered is scheduling this added
quantity. la consequence, it vill
probably be necessary to carry &
1-rge part of it over into the
Fourth Protocol period.
USE
316
Regraded Unclassified
Pro-
Item
Unit
3rd
Made Available
Made Available
Percent of
Ratio of
Balance to be
Compents
Protocol
at Fill is U.S.A.
at Mill in U.S.A.
3rd Prot.
Actual
Produced
tocol
Item
Production
Mar. 1, 1944 -
July 1, 19:3-
Program
Deliveries to
as of Apr. 1, 1944
No.
Program
Mar. 31, 1944
Mar. 31, 1944
Completed
Prot.Sched.
To Complete
ná of
(Prot.Sched.=100)
3rd Protocol
Apr. 1, 1944
Prod. Frogram
FOR-FIRMOUS METALS (Continued)
The Third Protocol cadaium cossit-
ment vas originally included is
the Canadian schedule, but due to
a difficult supply situation is
93 Ordaine
S.T.
112
28
56
50
100
56
Canada, the U.S. agreed to take
this over as the 112 s.r. due is
the second half of the Protocol
period.
The production program above is
for the first half of the Third
Protocol period: the ratio of
actual deliveries to the Proto-
col schedule bes, therefore,
been adjusted to take this late
account. The October shipment
completed the full original he
94 Cobalt
S.T.
80.5
o
80.5
100
133
0
tocol offer. The U.S.S.R. -
cently requested the Increase of
the Protocol offering by 78 s.r.
The U.E. has agreed to supply
one-half of this along with the
80.5 S.T. included in its Pro-
toool schedule. The U.S. will
supply the reminder.
Total Con-Ferrous Metale
(Excluding Item 6,
S.T.
186,855.5
34,192
194,135.5
104
139
(7,279 Excess)
Concer, Electrolytic)
FERRO-ALLOYS
12 Ferrosilicom
S.T.
-
o
57
-
-
-
Because of the stocks situation,
Third Protocol offers to supply
up to 78% S.T. of ferresilicon
and S.T. of ferrochrous per
13 Ferrochrome
S.P.
-
0
o
-
-
.
month are considered insperative.
I
317
Regraded Unclassified
Pro-
Item
Unit
3rd
Hade Available
Made Available
Percent of
Ratio of
Balance to be
Commants
tocol
Protocol
at Mill in U.S.A.
at Fill in U.S.A.
3rd Prot.
Actual
Produced
Item
Production
Mar. 1, 1944 -
July 1, 1943 -
Program
Deliveries to
as of Apr. 1. 1944
No.
Program
Mar. 31, 1944
Mar. 31, 1944
Completed
Prot.Sched.
To Complete
as of
(Prot.Sched.=100)
3rd Protocol
Apr. 1, 1944
Prod. Program
FREEO-ALLOYS (Continued)
854 Perronolyblemus
8.9.
1,456
o
1,120
77
183
336
forrovanation,
and forretungsten have been
scheduled in the quantities above
under the Third Protocol produc-
ties program as aubstitutes for
- equivalent scanage of ferre-
86 Ferrovanadium
S.T.
358
0
224
63
150
134
silicon end/or ferrochross. to-
cluded is these quantities are
336 S.T. ferronolyblems, 134
S.T. forrovanadium, and 224 S.T.
ferrotungsten which are current-
ly being approved for delivery
67
Perrotungsten
S.T.
1,064
o
526
49
148
538
in the second quarter, 1944,
Total Forre-Alleys
8.7.
-
o
1,927
-
-
1,008
ALLOT STEEL
16 Polished Drill Rod
3
Righ Speed
S.f.
96
11
85
89
119
11
c
Other Allay
S.f.
45
3
bo
89
119
5
17
Righ Speed feel Steel
s.r.
4,480
203
4,551
104
139
(171 Excess)
18
feel Steel
3
Alley n2
S.P.
672
70
665
99
132
7
c
Alley X12M
S.f.
672
64
611
91
121
61
2
Other Alleys
3.9.
4,850
525
4,912
101
135
(62 Excess)
19
Cold Finished Bare
S.T.
11,200
933
9.395
54
112
1,805
20 LL Alley here and Billete
S.T.
67,267
9,018
55,669
83
m
11,598
23 Stainless Steel
1-3 Sheets and Strip
S.T.
3,007
hog
3,130
104
139
(123 Excess)
0
here
8.9.
756
55
593
76
104
163
0%
Steel Wire
A
Mall Vire
S.T.
1,34
so
1,215
90
120
129
3
Alley 232
S.T.
1,344
228
1,058
79
105
266
o
Other Alley
S.T.
o
o
191
-
I
(191 Excess)
318
Regraded Unclassified
Pro-
Item
Unit
3rd
Made Available
Made Available
Percent of
Ratio of
Balance to be
Comments
tocol
Protocol
at Mill in U.S.A.
at Mill in U.S.A.
3rd Prot.
Actual
Produced
Item
Production
Mar. 1, 1944 -
July 1, 1943 -
Program
Deliveries to
as of Apr. 1, 1944
No.
Program
Kar, 31, 1944
Mar. 31, 1944
Completed
Prot.Sched.
To Complete
as of
(Prot. Sched.-100)
3rd Protocol
Apr. 1, 1944
Prod. Program
ALLOT STEML (Continued)
27 Steel Alley Tubes
A
18% Cr. - es n.
S.T.
994
188
1,222
123
164
(226 Excess)
1,019
B
4-66 Chrone
S.T.
8,625
937
7,506
88
117
0-8 Carbon 35 Moly., Pipe Sizes
S.T.
o
o
9
-
-
(9 Excess)
7
L.R. 3all Hearing Tubes
S.T.
5,376
779
5,060
94
125
316
26
Stainless Steel Wire
S.T.
1,747
163
1,609
92
123
138
mg Special Allay Wire
S.T.
754
26
819.
104
139
(35 Excess)
Total Alley Steel
S.T.
113,259
13,692
98,540
87
116
14,719
CARBON STEEL
101-8 Rails, Accessories and Other
S.T.
-
18,659
188,548
-
-
-
Bailvay Material
10 Copper Clad Strip (Bimetal)
S.T.
-
4,167
5,852
-
-
-
Approximately 110,000 8.9. of
carbon steel have been scheduled
16A Plain Carbon fool Steel and
S.T.
508
6,515
-
-
-
for delivery prior to June 30,
-
1944, in addition to the 345.397
& 18A
Drill 3od
S.T. originally included in the
Third Protocol program.
19D Plain Carbon Bullet Care
S.T.
-
43
11,736
-
-
-
S.T.
1,511
36,504
-
-
-
24 Timplate
-
- Other Carbon Steel
S.T.
-
1,526
70,017
-
-
-
Total Carbon Steel
5.7t
345.397
26,714
319.372
92
123
26,025
CHEMICALS
S.T.
1,653
8,701
-
-
-
36 Phesel
-
the 650 S.T. shown as the qual-
tity delivered through Karch 31
is 350 less than that delivered
38
Ethylene Glycol
5.7.
-
o
&
-
-
-
through Feb. 29 due to a out-
back agreed to by Soviet repre-
sentatives.
319
Regraded Unclassified
Pro-
Item
Unit
3rd
Hade Available
Nade Available
Percent of
Ratio of
Balance to be
Comments
tocol
Protocol
at Mill in U.S.A.
at Mill in U.S.A.
3rd Prot.
Actual
Produced
Item
Production
Far. 1. 1944 -
July 1, 1943 -
Program
Deliveries to
as of Apr. 1, 1944
No.
Program
Mar. 31, 1944
Mar. 31. 1944
Completed
Prot.Sched,
To Complete
na of
(Prot.Sched.=100)
3rd Protocol
Apr. 1, 1944
Prod. Program
CHEMICALS (Continued)
45 Methanol
S.T.
-
o
3.395
-
-
-
46 Urotropine
S.T.
-
225
4,975
-
I
-
.
SIA1 Glycerine
8.7.
6,720
o
7.707
115
153
(987 Excess)
61A3 Caustic Soda
3.7.
40,320
272
24,925
62
=
15,395
61,600 S.T. of ethyl alcohol have
been scheduled for delivery during
the Third Protocol period in addi-
38A Sthyl Alcohol
S.T.
107,520
o
114,278
106
141
(6,758 Excess)
tion to the 107,520 S.T. originally
included in the Third Protocol
-
program.
6145 Acetons
S.T.
5,137
420
3,198
62
83
-
1,939
514 Other Chamicals
-
S.T.
12,096
1,248
5,347
69
92
3,749
Total Chemicals
S.T.
-
3,818
176,176
.
-
-
MARINE AND SUBMARINE CARLE
1 Marine Cable
EM.
784
7
198
25
33
586
014 orders for marise and submarise
cable have been largely completed
whereas deliveries of new orders
have not yet begun because of lead
2 Submarise Cable
YM.
319
1
120
38
51
199
factors.
Total Marine and Subscribe
IN.
1,103
8
318
29
39
785
Cable
-
POWER AND RELATED CARLE
74
Insulated Cable and Vire
S.T.
-
754
11,170
-
.
-
01d orders for pover and related
(Conser Content)
cable have been largely completed
wherens deliveries of care orders
THA Bare Cable and Wire
3.7.
-
113
1,542
.
-
-
have not yet begun because of lead
(Copper Content)
factors.
Total Power and Related
1.7.
21,000
867
12,712
51
81
8,288
Cable
320
Regraded Unclassified
-
-
Pro-
Item
Unit
3rd
Made Available
Inde Available
Percent of
Ratio of
Balance to be
Comments
tocol
Protocol
at Mill in U.S.A.
at Vill in U.S.A.
3rd Prot.
Actual
Produced
Item
Production
Mar. 1, 1944 -
July 1, 1943 -
Program
Deliveries to
- of Apr. 1. 1944
No.
Program
Mar. 31, 1944
Mar. 31. 1944
Completed
Prot.Sched.
To Complete
as of
(Prot,Sched.=100)
3rd Protocol
Anr. 1, 1944
Prod. Program
MISCUMATIONS PATERIALS ITEMS
80 Sheet Fiber
S.T.
1,000
o
1,370
137
183
(370 Excess)
63 Parchaent Paper
S.T.
1,680
,
o
o
}
to date as requisitions have been
o
1,680
submitted by Soviet representatives.
83A1 Lithogronh Map Paper
S.T.
-
550
2,221
-
-
-
834 Condenser Paper
S.T.
73
19
56
77
103
17
}
Because of delays is the
or requisitions, production of -
denser paper vas not began until
Jamary.
S.T.
336
0
0
o
o
336
}
To date as requisitions have been
833 Cigarette Paper
submitted by Soriet representatives,
INDUSTRIAL AND RELATED EQUIPMENT
15A Consented Carbide Tips and
$
3,000,000
11,631
1,180,183
39
52
1,619,817
*lasks
158 Small Outting Tools
$
15,000,000
980,311
8,512,250
57
75
6,457.750
150 Yearoring Tools
$
3,000.000
151,503
1,020,223
34
45
1,979,777
FTB Abrasive Products
$
4,000,000
50,861
3,571,833
89
119
428,157
62 Mechine Tools
$ 120,000,000
5,623,400
84,946,050
71
95
35,053,950
See attached taxt for communis.
53 Electric Purnaces
$
11,900,000
583,528
4,456,067
38
51
7,143,933
as Bolling Mills and Equipment
$
16,000,000
207.946
1,529,211
10
13
14,470,789
543 Freeses, Forges, Hanners and
$
30,000,000
746,491
17.071.041
57
76
12,928,359
Related Mynipment
54c Tire Drawing Reuineent
$
2,000,000
178,538
203,625
10
13
1,796,375
65A Receavators
$
12,500,000
276,139
7,856,175
23
31
9,643,825
321
Regraded Unclassified
Fre-
Item
Unit
3rd
Made Available
Made Available
Percent of
Ratio of
Balance to he
Comments
Protocol
at mill in U.S.A.
at Mill is U.S.A.
3rd Prot.
Actual
Produced
tocol
Item
Production
Mar. 1, 1944 -
July 1, 1943-
Program
Deliveries to
as of Apr. 1, 1944
Program
Mar. 31, 1944
Mar. 31, 1944
Completed
Prot. Sched,
To Complete
No.
as of
(Prot.Sched.=100)
3rd. Protocol
Apr. 1, 1944
Prod. Program
INDUSTRIAL AND RELATED EQUIPMENT (Continued)
658 fruck and Tractor Cranee
$
22,000,000
1,482,126
16,683,240
76
101
5,316,760
650 Other Cranes
$
650 Compressors, Gas Vlowers,
a
9,000,000
68,179
3,778,534
42
56
5,221,466
Zcheusters and Thas
65% Pumps
$
8,000,000
214,075
4,396,734
55
73
3,603,266
658 Mining Equipment, Ore Dressing,
$
10,000,000
172,452
5,183,325
52
69
4,816,674
Handling and Transporting
Excipent
950 Equipment for Blast, Hearth
$
10,000,000
226,722
1,778,778
13
17
8,721,222
and Coke Farnaces
See attached text for compate,
658 Velding Equipment
$
4,400,000
138,645
2,698,452
61
81
1,701,548
651 Valves and Fittings
$
3,000,000
117,803
3,041,610
101
135
(41,610 Excess)
652 Pneuratic Tools
$
5,000,000
194,635
2,262,470
45
60
2,737.530
11
65% Autiliary Industrial Equipment
$
36,500,000
2,021,282
67.875.218
186
248
(31,375,218 Excess)
66 Centrol Inst. and Testing
$
1,700,000
42.572
769,189
45
60
930,811
Machines
-70
Anti-Friction Mearings
$
15,000,000
657,058
7,053.649
47
53
7.946,351
111
Block Signal System
$
14,591,500
690,212
4,033,453
25
37
10,558,047
140
Power Equipment
$
75,000,000
3,316,754
44,179,362
59
79
30,820,638
Total Industrial and Related
$
431,291,500
18,402,994
268,561,273
67
89
142,710,227
Equipment
322
Regraded Unclassified
Yre-
Item
Unit
3rd
Made Available
Made Available
Percent of
Natio of
Balance to be
Comments
tacel
Protocol
at Mill in U.S.A.
at Mill in U.S.A.
3rd Prot.
Actual
Produced
Item
Production
Mar. 1, 1944 -
July 1, 1943 =
Program
Deliveries to
as of Apr. 1, 1944
Program
Mar. 31, 1944
Mar. 31. 1944
Completed
Prot.Sched.
to Complete
i
AP of
(Prot.Sched.=100)
3rd Protocol
Anr. 1, 1944
Prod. Program
MISCELLATIONS EQUIPMENT ITEMS
67A Abrasive Orain
S.T.
4,000
1,432
6,312
158
211
2,312
FEA Graphite Electrodes
S.T.
5.757
396
4,621
80
107
1,136
fax Other Graphite Goods
S.T.
1,691
16
693
41
55
998
660 Graphite Powder
S.T.
1,120
177
1,712
153
204
(592 Excess)
76 Tires, fuber, Other Rubber
S.T.
40,320
1,460
24,571
61
81
15,7%9
Products (haber Content)
82 Metallic Cloth and Screen
#
1,000,000
54,316
431,484
43
57
568,516
Var Production Foard
Foreign Division
Program Review Branch
April 15, 1944
323
Regraded Unclassified
324
Mr. Dell said for you to show this
to the Secretary. It is an informal
thing and no acknowledgment is
yes-
was Klatz 1 M
Let me know whether
H. w hite has seen
they. Mr.
Office of the Under Secretary
E
STATE
THE
25
DEPARTMENT OF STATE
WASHINGTON
In re
fer to
PKA
April 22, 1944
The Secretary of State presents his compliments
to the Honorable the Secretary of the Treasury and
transmite for his information a copy of a note dated
April 20, 1944 received from the British Embassy re-
garding a loan of $50,000,000 by the United Kingdom
to China.
Enclosure:
From British Embassy,
note no. 225, dated
April 20, 1944.
G.L.
Regraded Unclassified
ENTIAL
No. 225
Ref. 493/25/44
His Majesty's Ambassador presents his
compliments to the Secretary of State and has the
honour to inform Mr. Hull that His Majesty's
Principal Secretary of State for Foreign Affairs
proposes to make an announcement in the House of
Commons on or about April 22nd, 1944, regarding the
agreement which is to be signed on that day on the
subject of B. loan of $50,000,000 by His Majesty's
Government in the United Kingdom to China. A copy of
the draft text of this announcement is attached hereto
and Viscount Halifax would be grateful if Mr. Hull
would consider it as confidential until after it has
been made public in London.
2.
As Mr. Hull is aware, discussions have been
going on for some considerable time between His Majesty's
Government and the Chinese Government regarding this
loan, and Viscount Ralifax has been instructed to inform
Mr. Hull that t he agreement now to be signed represents,
with minor alterations, the basis on which Hia
Majesty's Government in the United Kingdom have,
since the inception of the negotiations, been ready to
offer this credit.
3.
The main points of the loan agreement are
as follows:-
(a) His Majesty's Government in the United
Kingdom agree to provide up to L10,000,000 in the first
instance to secure an internal loan. An eventual
increase in this amount, if it should be found that
/more
Regraded Unclassified
ONFIDENTIAL
DRAPT TEXT OF ANNOUNCE NT TJ B. HADE CY HIS
MAJESTY'S PRINCIPAL SECRETARY 0: X T. FOR
FORMIGN AFFAIRS INTE IC O. COLDIONS
A formal agreement :a being signed today on
the subject of the loan by N1o "ajosty's Covernment to
China of up to $50,000,000. Under the terms of the
agreement, which carries ut the offer made by His
Majosty's Government to the Chinoso Government somo
tino ago, up to 550,000,000 will be available for finan-
ching of goods and services required by China in the
storling aron, for jurposes artsing out of the war.
second agreement covering munitions, arms and
military equipment on lend-lease terms by the "nited
Kingdom to China has been 5 igned at the samo time.
Pending the signature 02" agreements, the cost of Coods
and services required by hind from the sterling area
for war purposes has be n not from onrlier Tribish
credits; munitions otc., have 50 n provided on lend-
lease torms 1:. anticipati = of ont agreement. he
limit of our assistance to China remains as always,
one of transport and not _no of financo,
I an sure that the Housevill share = ontia-
faction that those agreements ha e now bound cluded
and that in this, ad in other ways, we have mádo manifost
our desire to (Ive all the holp to China that lies within
our power.
Regraded Unclassified
Page 2.
more could be effectively used for such a scheme, is
not excluded.
(b) The credit is not to be used for sterling
savings certificates.
(a) His Majesty's Government in the United
Kingdom agree to use, during the war, of 10,000,000
for printing bank-notes in the Sterling Area, and for
outstanding and future payments on orders already
placed under previous credit arrangements.
(d) His Hajesty's Government in the United
Kingdom agree that the Chinese Government my earmark
the sum of L20,000,000 for the purchase of goods in
the Sterling Area for war purposes.
The remaining £10,000,000 would then be
available for such of the purposes covered by the Agree-
ment as might prove necessary.
(a) His Majesty's Government in the United
Kingdom agree to ranko payments which fall due after the
end of the war on contracts properly concluded, with
their concurrence, for goods which could reasonably be
expected to arrive in time to serve "war purposes".
J
Viscount Halifax has also been informed that
the opportunity presented by the signing of this loan
agreement will be taken to sign the Lend Lease agreement
between His Majesty's Government in the United Kingdom
and the Chinese Government which was originally proposed
in February 1942, and which, although unsigned, has in
fact been in operation since April 1942.
BRITISH EMBASSY,
WASHINGTON, D.C.,
April 20th, 1944.
Regraded Unclassified
329
Developments during the week of
April 17 - 22, 1944
1. COOPERATION WITH OTHER GOVERNMENTS
(a) Russia
A reply has been received from the Soviet Government
to the memorandum left by Ambassador Harriman with respect
to the creation and objectives of the Board. This reply
states in substance that the policy of the Soviet Govern-
ment has been, and still is, to aid in every way possible
the victims of persecution by Hitlerite Germany.
In a cable to Harriman we have asked that appropriate
authorities of the Soviet Union be approached in an effort
to ascertain whether, in view of the positive action re-
cently taken by both the United States and British Govern-
ments in reiterating their attitude toward Nazi war crimes
and atrocities, the Soviet Government would take similar
action. We have indicated our belief that such a statement
on the part of the U.S.S.R. would have a profound effect
upon the leaders and people of Rumania and Hungary.
(b) Greek Government-in-Exile
According to a report from the U. S. Legation in Cairo,
the Royal Hellenic Government has welcomed the creation of
the Board and has indicated its desire to cooperate in alle-
viating the refugee problem. A memorandum left with the
Legation in Cairo stresses the great hunger and other
hardships visited upon the Greek people as a result of
German occupation. The memorandum also points out that
persons in danger can escape from Greece with relative
ease because of that country's geographical position.
(c) Turkey
Ambassador Steinhardt reports that the Turkish Govern-
ment has now put into effect a plan worked out before
Hirschmann's departure, for the evacuation of refugees
from the Balkans by rail via Turkey.
Regraded Unclassified
330
- 2 -
We have been advised that Turkish repatriates are also
arriving in Turkey from France, in groups of fifty or 80
and at regular intervals, this repatriation being a direct
result of our representations through Hirschmann and Stein-
hardt to the Turkish Government.
With respect to further "illegal" voyages by the "Milka"
and "Maritza" -- that is, evacuations in which the proper
maritime papers, Palestine immigration certificates, and
Turkish entrance and transit visas are lacking, Ambassador
Steinhardt indicates that if the number does not go beyond
500 refugees per month, he is reasonably sure that entry
and transit can be arranged with the Turkish Minister for
Foreign Affairs as each occasion arises, subject to the
limited carrying capacity of the railroad to the Syrian
frontier from Istanbul. Because of the recent substantial
increase in the transit to Palestine from Istanbul of refu-
gees arriving "legally," Steinhardt estimates that this
500 is the maximum number of refugees arriving illegally
each month for whom rail transportation could be provided.
In & cable to Ankara we are advising Steinhardt that
we have now obtained from the War Shipping Administration
and from the Foreign Economic Administration authorization
to commit this Government to the replacement of the "S.S.
Tari," in the event of the loss of that ship in projected
evacuation efforts, with a passenger vessel, as requested
by the Turkish Government. In order to remove the one
remaining obstacle, the granting of safe-conduct by the
German Government, we are requesting that Steinhardt urge
both the International Red Cross representative in Ankara
and the Apostolic Delegate from Istanbul to arrange to see
von Papen in person. Steinhardt is also being asked to
advise us when the "Tari" is ready to depart, in order that
war risk insurance may be placed here.
(d) Switzerland
The appointment of Roswell McClelland as the Board's
Special Representative in Bern, Switzerland, and as Special
Attache to the Legation on war refugee matters, has been
confirmed.
Minister Harrison has reported that the Swiss Govern-
ment has declined to request German safe-conduct for the
"S.S. Tari" in the projected Turkish evacuation on the
ground that Swiss support of such a request would impede
the efforts of the International Red Cross in that direction.
Regraded Unclassified
331
- 3 -
The Swiss Government indicated, however, that it would not
refuse to consider participation in a joint step which other
neutral states might decide to undertake in this matter
for exclusively humanitarian motives. Harrison subsequently
reported that & similar position had been taken by the
Swiss Government with respect to IRC representations
concerning safe-conduct for the "S.S. Bellacitta."
We have cabled Harrison that both the Swedish and
Turkish Governments have already acted in support of the
IRC request for German safe-conduct for the "Tari" and
we have suggested that Harrison may wish to bring these
circumstances to the attention of the Swiss Government
in renewed efforts to obtain an affirmative decision.
(e) Sweden
We are continuing our efforts to arrange for the use of
a Swedish ship, notably the "S.S. Bardalanda," in Turkish
evacuation efforts.
With respect to the President's statement of March 24,
Minister Johnson reports a fairly general coverage in
Stockholm newspapers, with less coverage throughout the rest
of Sweden. Excerpts from the President's statement were
given in official Swedish news broadcasts in the Swedish
language over short, medium, and long wave lengths. The
statement was also relayed through underground channels to
Norway and Denmark and may thus come to the attention of
occupation forces in those countries. Informal requests
by the Legation that prominent government officials publicly
comment on the statement were unsuccessful.
Johnson also reports that the Swedish Government has
agreed to make every effort to hasten action on the part of
the Germans with respect to the granting of safe-conduct
for the "S.S. Tari." The matter of safe-conduct for the
"S.S. Bellacitta" is also being taken up with the Swedish
Government.
(f) Guatemala
In reply to State's circular airgram of January 26,
Ambassador Long advises that little or nothing is being done
officially in Guatemala toward the rescue or relief of
mission has been granted for nearly 1,000 refugees to enter
persecuted elements in Europe, although since 1933 per-
Regraded Unclassified
332
- 4
Guatemala. The Guatemalan Government reportedly permits
the entry of refugees for permanent residence where such
refugees are able to obtain a guarantee of support from
relatives already residents or nationals of that country;
in- some instances refugees have been able to gain entry
for permanent residence without local sponsors. However,
in all cases entry is granted only under the provisions of
a law which severely restricts the pursuits of immigrants.
Alleged abuses of entry restrictions led to a government
decree in March 1929, closing business establishments
owned or operated by refugees, requiring the registration
of business houses, and calling for the licensing of agents
working on a commission basis.
Ambassador Long indicated his belief that if any
representations are to be made to the Guatemalan Government
with respect to the acceptance of refugees, the chances of
success would be greatly enhanced if any such proposal
could be presented in specific terms, particularly with
respect to the number of persons proposed and their probable
length of stay.
(g) Finland
On the basis of informal discussions, Minister Gullion
reports his belief that the Finnish Government would in
all probability issue a declaration with respect to its
willingness to facilitate the movement of refugees. The
Finnish Foreign Office has indicated that, if such a
statement is to be made, its release will be timed to co-
incide with the projected evacuation of certain Jewish
refugees from Finland to Sweden.
In a cable to Helsinki now pending at State, we are
asking Gullion to report on the possibility of using Fin-
land as an escape route to Sweden from German-held Baltic
areas, particularly Lithuania, and on the possibility of
cooperation from the Finnish Government in this connection.
2. APPROACHES TO THE SATELLITES
In response to our request that the International Red Cross
send effective -representation to Hungary in order to protect
the well-being of groups facing persecution there under
the recent German occupation, the IRC has advised Minister
Regraded Unclassified
333
- 5 -
Harrison in Bern that for the time being it does not con-
template any such special delegation. The IRC is said to
feel that under present circumstances such a mission might
be considered as inconsistent with its traditional and
conventional competence.
Minister Harrison has also reported on recent developments
in the Jewish situation in Hungary. Increasing restrictions
against Jews are noted, including those relating to general
urban accommodations. Aryanization of banks and commercial
and industrial enterprises is said to be proceeding, The
establishment of ghettos or internment centers is also
foreseen. Mass deportations to the cast, however, are
reported to hinge upon military developments. Signifi-
cantly, Jews have been forbidden to leave Budapest despite
the official evacuation of that city.
3. RESCUE AND RELIEF PROJECTS
(a) Relief to Jews in Rome
The American Jewish Joint Distribution Committee
representative in Portugal reports that 1,400,000 lire have
already been borrowed in Rome against the $20,000 credit
established in London for relief to Jewish refugees in
Rome. The recipient organization in Rome, Delasem, has
asked that the funds originally deposited in London be
credited in its name in the United States in dollars, along
with such additional funds as may be forthcoming from the
JDC on the basis of previous requests.
(b) Abandoned Children from France
Minister Harrison has advised us that despite repeated
informal representations on the part of the Swiss Government
to Vichy with respect to the release of abandoned children
facing deportation in France, Laval's decision was negative,
with no-explanation being given. It was urged that no
publicity be given concerning Swiss intervention in this
matter or Vichy's refusal, for fear of halting further
efforts by the Swiss Government in this direction.
In a cable pending at State we are asking Minister
Harrison and Board Representative McClelland to request
that apprepriate instructions be issued to the Swies Le-
gation at Vichy with respect to a formal approach to
Laval on the matter. We are also requesting our Ministers
in Lisbon and Dublin to approach the Portuguese and Eire
Governments with requests for parallel action.
Regraded Unclassified
334
- 6 -
According to a report from the JDC representative in
Lisbon, during the past four or five weeks over 300 such
children from France have reached Switzerland clandestinely
and are being cared for by local groups.
(c) Evacuations to Italy and the Mediterranean Area
According to a report from the U. S. Legation in
Cairo, the British Foreign Office has instructed its Yugo-
slavian Embassy to approach Tito with a view to obtaining
his active aid in facilitating the escape of Jews from
Hungary through Partisan territory. Our great interest
in facilitating such escapes to Italy and the Mediterranean
area, has likewise been indicated in a cable to Cairo.
Our Legation there has been advised that arrangements
can be made for any assistance necessary, including finan-
cial, in order to enable these refugees to reach places of
safety.
(d) Rescue of Jews in Athens
We have learned that 400 Sephardic Jews, Spanish
nationals residing in Athens, have recently been imprisoned
in & concentration camp. As a result of intercession by
the Holy See, the Spanish Government has on several occasions
in the past been prevailed upon to recognize groups of
Sephardic Jews in Axis-held territory as Spanish nationals.
For this reason, we are cabling Harold Tittmann, U. S.
representative at the Vatican, asking him to approach Vati-
can officials 80 that the Papal Nuncio at Madrid may be
advised of this situation and his aid enlisted in obtaining
Spanish recognition, thereby forestalling deportation and
almost certain death.
(e) Evacuation of Refugees from Finland
Some time ago Minister Johnson reported from Stockholm
that Sweden had refused entry to 113 Jewish refugees who
had gone to Finland from central Europe in 1938 and 1939, fact des-
pite repeated requests on Johnson's part and despite the for
that the Finnish Government itself had made application
the admission of these refugees to Sweden. Johnson sub-
sequently prevailed upon the Swedish Government to re-
examine the case, in view of the danger of serious perse-
cution, not only to the Jewish refugees in question but to
Regraded Unclassified
335
- 7 -
local Jews and many non-Jewish refugees who would be
equally threatened as a result of increasing German influ-
ence in Finland. We have now guaranteed to make arrange-
ments for the evacuation from Sweden, as soon as practical,
of all threatened persons other than Swedes who may be
accorded. refuge in Sweden, and for the maintenance while
in Sweden of such refugees who cannot claim the support of
their own governments. As a result, Swedish visas have
now been authorized for 100 of the central European refugees
now in Finland "as a starter."
(f) Latin American Passports
Minister Harrison has communicated to us the details
of approaches made by the Vatican to various Latin Ameri-
can governments in an attempt to work out relief measures
and possible evacuation plans for Jews interned in Axis
territory who hold passports or papers issued by these
governments. Under the circumstances reported, our
efforts toward exchange arrangements become all the more
urgent. Accordingly, we are cabling Harrison to proceed
with all possible despatch in pressing Spain and Switzerland
to-inform the German authorities that we are prepared to
consider as exchange material all internees in occupied
territory who hold Latin American passports. In this
connection we are asking Harrison to note that we are
advising Latin American countries that this Government does
not expect such countries physically to admit any of these
persons, but that arrangements will be made for refuge
elsewhere. We are also communicating with the Vatican and
requesting its support in our efforts on this basis.
In cables to Bolivia, Costa Rica, El Salvador, Guate-
mala, Haiti, Nicaragua, Paraguay and Peru on the projected
exchange, the substance of the report concerning Vatican
efforts is given along with the request that our Ambassa-
dors impress upon the officials concerned the fact that
failure to act will almost certainly spell death for the
persons involved.
Since certain individuals among the refugees interned
in France and Germany claim American citizenship, we are
asking that Switzerland, as the protecting power, be advised
that while such claims are under investigation and until
the Swiss Government is advised to the contrary, we expect
such refugees to be treated as U. S. citizens, with all the
rights, privileges, and immunities to which such citizens
are entitled.
Regraded Unclassified
336
- 8 -
(g) Joint Exchange Project
We have been urged by the World Jewish Congress to
make a special joint effort, with Great Britain, to arrange
still another exchange of Jews in German-occupied countries
against German nationals in Allied countries. The WJC
has indicated that the candidates for exchange which it
proposes are some 3500 Jews holding Palestine immigration
certificates and whose names have already been supplied by
the British Government, through Switzerland as the protecting
power, to the Government of Germany. Germany is said
to have accepted this principle of exchange, but the lack
of German candidates has prevented the exchange from material-
izing. The holders of these Palestine certificates are
now interned in special camps and are in increasing danger
of deportation as exchange arrangements are prolonged.
4. COOPERATION WITH THE INTERGOVERNMENTAL COMMITTEE
Discussions in Washington with Sir Herbert Emerson and
Patric Malin of the Intergovernmental Committee have now
been concluded, complete agreement having been reached
with regard to our respective fields of operation. Copies
of an exchange of memoranda between the IGC and the Board
are being sent: to our representatives abroad, reinforcing
a mutual desire for the closest cooperation between our
respective staffs in attempts to alleviate the refugee
problem.
5. PRESS CONFERENCES
During the past week two press conferences were held. In
the first instance, Ira Hirschmann was interviewed on
accomplishments in Turkey. At the second meeting, Sir
Herbert Emerson and Patric Malin of the Intergovernmental
Committee were presented and discussion dealt with the
agreement reached between IGC and the Board.
(Signed) J. W. Pehle
Regraded Unclassified
337
April 22, 1944
2130 Pollo
TO:
Mr. Berle
FROM: J. We Pehlo
The Verla Jewish Congress, of 330 West 42nd Street,
New York, has informed the War Refugee Board of its desire to
send Dr. Solemen Tocker to various countries in Latin America,
to work as representative of the World Jewish Congress in
connection with that organization's action to resoue Jevs from
German occupied areas in Burope. The Board is informed by the
World Jewish Congress that Dr. Tocker has lived many years in
Latin American countries, has a perfect command of Spanish,
enjoys excellent connections is Latin American and therefere,
would be of distinct value in furthering refuges rescue work
in that area.
As you have the War Refugee Board isdesirous of
using the services of any private agency which can assist it
in recouing Jews of Burope who are in danger of imminent death.
Accordingly. the Board wishes to register its approval of the
proposed journey of Dr. Tocker and would appreciate anything
that dould be dans to facilitate this journey.
More particularly, the Board would request the
Department's cooperation is granting Dr. Tocker the necessary
re-eatry permit to enable him to return to this country.
Dr. Tocker is a Polich ditisen, admitted to this country as
& quota immigrant, and has filed his declaration of intention
is view of obtaining American citisenship. It is understood
that be has already filed his application for a re-entry
permit with the Immigration and Naturalisation Service.
You are quare, of course, of the extreme urgency
of receaing Puropean Sers in Coman-controlled territory, and
of the importance of @ising the cooperation of Latin American
countries to this one I trust, therefore, that you will find
# possible to emable Dr. Technor to depart on his mission with
the least possible delay.
(Signed) J. V. Pehle
RAIJUPSING 4/21/44
Regraded Unclassified
338
PARAPHRASE OF TELEGRAM RECEIVED
FROM: The American Representatives, Algiers
TO:
The Secretary of State, Washington
DATE: April 22, 1944
NUMBER: 1337
CONFIDENTIAL
The following message is from Ankermann, War Refugee
Representative No. 14 for the War Refugee Board.
1. I have again discussed with the Partisan general
whom AFHQ referred to us the problem of evacuation of the
Yugoslavs. The immediate need is for from fifteen to twenty
schooners from one hundred to two hundred in size since the
repair of the vessels they own will take some time. Since
rescue must be done in darkness and since the nights are
growing shorter these vessels preferably should have a speed
of ten knots at least. For the journey to the Dalmatian
Islands from the mainland of Tugoslavia small vessels
one to two tons in size are needed,
2. If allocation can be obtained from MEDIBO in Italy
there are available some 200-ton ships. This will be assisted
by strong direction from a high naval authority or from Admiral
Land. Motor boats or small ships must be obtained elsewhere
since they are not available. As the nights grow shorter the
present use of fishing smacks by Yugoslavs becomes more dan-
gerous.
3. For additional report on the Yugoslav situation which
is being sent directly from Bari, please get in touch with
Robert Wolff, Balkan Desk, R. and A. Branch, Office of
Strategic Services, Washington,
CHAPIN
DCR:MPL
4/25/44
Regraded Unclassified
339
ORIGINAL TRXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
Amlegation, Gaire
DATED:
April 22, 1944
NUMBER:
30
SECRET
From Var Befuges Board to MacVeagh.
War Refuges Beard is extremely interested in
preject involving escape of Jews from sccupied
territory to Italy and Mediterranean region. Please
advise Mar Refuges Board of any further developments
in this situation, particularly result of mentioned
appreach to Tite. Board is prepared to arrange for
any assistance, including funds.
HULL
Regraded Unclassified
340
CABLE TO LONDON
From War Refugee Board to Winant
If en answer has not yet been received from the
British with respect to the proposal to establish refugee havens
in Cyrenaica and Tripolitania as outlined in our No. 2292 of
March 25, 1944, please inquire when answer may be expected.
April 22, 1944
11:15 a.m.
Regraded Unclassified
341
PLAIN
ON-349
Londen
Dated April 22, 1944
Rec'd 1:25 Pollo
Secrdary of State,
Washington.
3817, treaty-cosent.
Please instruct cancerning action 18 take en
travel phority and passport Unlidation raised by
following letter dated April 20th from American Joint
Distribution Office at London just established by
Donald Harvits.
The American Joint Distribution Committee is
interested is establishing an office in Sweden in order
to extend and more effectivity carry out its program of
relief and rehabilitation. The representative assigned
to establish this effice is Miss Lanra Margelis, an
American citisen, who is now in Lisbon, Portugal.
We have been informed that transportation to Sweden
is sev abailable, this being a prerequisite to having
her passport validated for Sweden, and for England in
transit. M present we should like very such to ob-
tain a prierity for travel to Sweden for Miss Margolis
in which case a validation would be granted. Will gou
be kind enough to take this matter up with Washington
so that ve my secure a prierity and in turn the neo-
essary validations and visas".
War Befugee Board my be interested. Unless Miss
Margelis has agecial passport indicating that she is
travelling en efficial business the Embassy understands
the transportation facilities would not be granted and
is all probability Svedish visa could net be obtained.
WINANT
VSD
Regraded Unclassified
342
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
Amembassy. London
DATED:
April 22, 1944
NUMBER: 3243
SECRET
From War Refugee Board to Winant.
If an answer has not yet been received from the
British with respect to the proposal to establish
refugee havens in Cyrenaica and Tripolitania as out-
lined in our No. 2292 of March 25, 1944, please
inquire when answer may be expected.
HULL
Regraded Unclassified
343
CABLE TO THE AMERICAN CONSULATE GENERAL AT JERUSALEM
Please deliver the following message from War Refugee
Board to Rabbi Joseph Mishkowski, Meker Chaim, Jerusalem:
QUOTE Necessary you immediately send influential
outstanding delegate to Istanbul to cooperate with Griffel.
Remitted 25.000 dollars under license 617451-R to Jacob
Griffel, Hotel Continental, Beyoglu for rescue. Sternbuch
also remitted to him 25.000 francs. Sternbuch cables urgency procuring
unlimited number of veteran certificates for Rabbis and religious
leaders in grave danger in Hungary and Lithuania. Sternbuch
reports these certificates useful for internment privileges in
occupied territories and for possibilities of exchange. Necessary
you inform American Consulate names of your Vaad Hatzalah Com-
mittee and your activities to enable consulate to lend you every
support possible. Vaad Hatzalah Emergency Committee, Rabbis
Rosenberg, Silver, Levinson, Kotler, Kalmanowitz. UNQUOTE
April 22, 1944
11:15 a.m.
Regraded Unclassified
344
CIRCULAR
sacuer
Sent by Secret Courier
Secret
April 22, 1944
SECRET CIRCULAR AIRGRAM
FOR THE PERSONAL AND CONFIRENTIAL INFORMATION OF THE anbassadors
AP TEQUCISALPA, SAN JOSE, QUITO. SAN SALVADOR, PONSeau-PRINCE,
LIMA, MANAGUA AND CARACAS.
Referring to the Department's circular airgram of April 10,
11:00 Balle, and of March 31, 1205 PORTO the following is the sub-
stance of a message received from Lendon by Sir Herbert Emerson,
Director of the Intergovernmental Committee, who is new in Washington:
QUOTE According cables Jewish Agency, Jerusalem, new commander
Vittel Camp advised March 20 about 250 to 300 internees helding South
American passporte that they were not recoggized by government OD-
cerned. It is alleged these persons already isolated for deportation
which caused panic and despair. Agency here has partial list of
people affected, mostly Polish Jews previously put on list of veteran
Zionists, Rabbie, et cetera, for grant of Palestine certificates.
Agency trying to obtain from Colemial Office formal assurance to
Swiss protecting power that these persons placed on Palestine exchange
list in order to tave off deportation UNQUOTE.
In view of the imminent danger which faces the persons involved,
and in the light of this Government's deep consern for their welfare,
you should communicate to appropriate officials of the Government to
which you are accredited the urgency with which favorable responses
and active seasures along the lines described in our circular airgrams
of April 10 and March 31 are needed. You may also wish to inform
such efficials that in addition to the approach to Switserland
referred to in our circular airgram of April 10, we have also
requested Ambassador Hayes similarly to approach the Spanish Govern
ment. Please keep the Department promptly advised of all develop-
ments is this matter.
Hull
HULL
Sent tet Headuras, Costa Bica, Boundor, B1 Salvador, Haiti, Peru,
Nicaragua and Venesuela.
ARA
VE
SWP
WHB:GLW:KG
4/19/44
Regraded Unclassified
345
AIRGRAM
From: American Embassy, Habana
Date: April 22, 1944
Rec'd: Apr 27 10a
SECRET
Secretary of State,
Washington, D. C.
34
Department's confidential circular airgram, April
15, 78p.m.
The Joint Relief Committee in Habana, local branch
of the Joint Distribution Committee in the United States
is the private agency here most qualified and reliable to
carry out such work, Its local representative states that
he is ready to cooperate but that would have to obtain au-
thorization from his head office. At the Embassy's re-
quest, he has taken no action on the matter.
I feel that if the choice of a private agency were
left to the Cuban authorities, local irregularities would
probably occur, particularly in the distribution of funds.
In this connection the Department will recall the dsigrace-
ful record of the Cuban authorities with reference to the
refugee situation (see despatch No. 6149 of March 1): also
the inclusion of Inc Gustavo GUTIERREZ AND Manuel PEREZ
Benitoa on the recently created Cuban War Refugee Board
is not encouraging. A recent example of the Cuban Gov-
ernmant's attitude was its unsuccessful attempt to swindle
refugees out of $700,000 by freezing the deposits required
of immigrants entering Cuba.
I therefore suggest that, before I inform the Cuban
Government of the contents of the airgram under reference,
the Department ascertain whether the Joint Distribution
Committee would be willing to undertake such a program in
Cuba. My approach to the Cuban Government might then be
(1) to request it to assure the Swiss Government that it
will be willing to accept a fixed number of refugee chil-
dren and (2) to state that I am informed that the Joint
Distribution Committee would be prepared to care for the
children, through the Joint Relief Committee in Habana,
and to make arrangements to provide the latter with the
necessary funds.
BRADEN
711
EMH/jm-dsc
Regraded Unclassified
346
129
6845 p.m.
Sent by Secret C ourier
AMEMBASSY,
ASUNCION (PARAGUAT).
April 22, 1944
FOR THE PERSONAL AND CONFIRENTIAL INFORMATION or THE AMBASSADOR.
Referring to the Department's 118 of April 10, the fellowing
is the substance of a neceage received from Londen by Sir Herbert
Imerson, Director of the Intergovernmental Committee, who is now
in Washington: QUOTE According cables Jewish Agency, Jerusalem,
now commander Vittel Gasp advised March 20 about 250 to 300 internees
holding South American passports that they were not recognised by
government concerned. It is alleged these persons already iselated
for departation which caused pamic and despair. Agency here has
partial list of people affected, mostly Polish Jews previously put
on list of veteran Siemists, Rabbis. et cetera, for grant of Palestine
certificates. Agency trying to obtain from Colemial Office formal
assurances to Guiss protecting power that these persens placed on
Palestine exchange list in order to extave off deportation UNQUOTE.
In view of the imminent danger which faces the persons involved,
and is the light of this Government's deep concern for their velfare,
you should communica to appropriate officials of the Government of
which you are accredited the urgency with which faverable responses
and active measures along the lines described in our 118 of April 10
are needed. You may also wish to inform such officials that in
addition to the approach to Switserland referred to in our 118
of April 10g we have also requested Ambassador Kayes similarly
to approach the Spanish Government. Please keep the Department
premptly advised of all developments in this matter.
HULL
VEB:GLN:KG
ARA
VS
SWP
4/19/44
Regraded Unclassified
347
AIRGRAM
BY SECRET COURIER
from
Asuncion
Date: April 22, 1944
Rec'd: May 1 8 Bello
STRICTLY COMPIDENTIAL
The Secretary of State,
Washington.
4-139, April 22, 10:00 a.m., 1944
I teek up with the Foreign Minister on April 20 the
points raised in the Department's recent circular airgram,
A-118, 11:25 Bolleg April 11, 1944, (whose special directions
have received compliance.)
The Minister at first stated that be was unaware of
any inquiries from the Spanish Government with regard to
eastern Europeans in German concentration camps who hold
Paraguayan passports. He was familiar with the general
question, however, and affirmed that his Government will
steadfasty recognise the validity of such passports until
the war shall have terminated.
The Minister provisionally took a favorable attitude
with regard th securing an exchange of persons holding
Paraguayan passports for persons of German nationality
interned in the United States or elsewhere in the Americas.
He accepted the view that this my bring the possibility
that Easi agents in Paraguay,- some of whom are apparently
about to be interned here.- could eventually be repatriated
to Germany. Be made written note of the fact that if any
bone fide Paraguayan citisens are found in the German co De
centration camps they will be given preference in any 02-
change; and also that persons holding Paraguayan passports
who are not in reality Paraguayans will not be sent to
Paraguay. (On this latter point be assumed that in case
any such persons vere shown to be skilled agriculturists.
Paraguay could and would receive them.) Be also clearly
understeed that this proposal is being made by our Govern-
ment to the governments of the other Latin American countries
invelved. Be stated that if the Spanish Government on be
half of the German authorities should submit lists of per
sens holding such passporte, the reply would be that the
passporte are being maintained.
The Foreign Minister likevise inseribed in his notes
the request that the Paraguayan Government affirmatively
appreach the German Government.- by addressing a note to
the protesting power, Spain, through its Charge d'Affaires
here. to demand that the Paraguayan passporte be honored
and the......
Regraded Unclassified
p/2, S.C. Airgram A-139, pril 22, 10 a.m. Asuncion
348
STRICTLY CONFIDENTIAL
Regraded Unclassified
and the holders respected as regards their lives, rights
and privileges.
My visit was timed to precede immediately a Cabinet
meeting; and the Foreign Minister promised to take up the
mtter with the President after the Cabinet meeting. He
stated be was confident of receiving the President's per-
mission to give definitively favorable responses on all
the points raised (especially, (a) the approval of nego-
tiations by the United States with Germany for exchanges,
and (b) the making of an admonitory remonstrance by Paraguay
to Germany).
Dr. CHIRIANI then summoned the Undersecretary, who
has been in charge of the problem for some months past;
and the latter took as to his office and showed me net of
the correspendence file. From the file, and from the Under-
secretary's statements, the following situation was developed:
by Decree No. 207 of September 4, 1943, the Paraguayan
Supreme Court decided (a) that Sr. Rodelfe HUGLI, Paraguayan
Honorary Consul at Berne, Switserland, should be dismissed
from his position, and (b) that the passports which he had
issued to eastern Burppeans whowing them to be Paraguayana
should be annulled.
During the next three or four months, however, the
Paraguayan Government received appeals from Poland, Belgium
and Holland through their representatives at Buenes Aires
requesting that the passports not be annulled, for humani-
tarian reasons) and late in December had the same request
from this Mabassy, undo at the Department's suggestion.
the reply given in all cases was that the Paraguayan
Government had not cancelled the passports in question and
did not intend to do so while the var continues. (See
my telegram No. 688, December 28, 3:30 p.m., 1943.)
On January 2, 1944, the Foreign Office addressed the
Spanish Charge d'Affaires at Asuncion, in response to a
note received from hime stating that Consul Hugli had
possessed to legal right to confer Paraguayan nationality;
but that while the Supreme Court had ordered him to be
dismissed and the passports to be treated as null, never-
thelese the latter part of this order would not be placed
into effect until after the termination of the Buropean
Ware It further requested the Charge to telegraph to his
government asking 1t to inform the Corner Government that
the passports are still recognised as valid. On January 3,
the Foreign Office addressed two separate instructions to
the Paraguayan Ambassador in Bacaos Aires, who had been
approached by the Dutch and Polich Ministers in that capital.
Be was told to inform the Ministers in question(1) that
the passporte were recognized as valid for the duration of
the war and (2) that it had requested the Spanish Charge
here 80.....
349
9. 3, S.O. A-139, April 22, 10 alm,, Asuncion
STRICTLY CONFIL NTIAL
here se to inform the German Goverment telegraphically
via Madrid. On February 8 the Foreign Office addressed a
further note to the Spanish Charge confirming its previous
note.
The Chairman of the Paraguayan Red Cross, Dr. Andres
BARBERO, visited the Foreign Office early this month on
behalf of a list of forty cases of interned eastern
Buropeans helding Paraguayan passports. He received
assurances.
On April 10 the Spanish Charge communicated again with
the Foreign Office to the effect that since Paraguayan law
provides that a Consul can not confer Paraguayan nationali-
ty there was not perceived legal consistency in Paraguay's
position in continuing to regard the passports as valid.
On April 17 the Foreign Office replied flatly and simply
reasserting its attitude. (While its note did not 80
state, the theorpy of the Paraguayan Foreign Office seem
to be that the Supreme Court Decrde declaring the passports
null need not be given effect immediately.) The Charge
of Spain vas informed that this Paraguayan action was tallen
as a result of intercessions by the governments of Poland,
Belgium, Holland and (informally) the United States, as
well as of several philanthisopic organizations, and that
it is based on humanitarian grounds.
In response to informal inquiry on the 21st instant
the Foreign Minister dtated that he had not yet received
an affirmative decision as to exchange negotiations and a
Paraguayan demand upon Germany.
FROST
801.2
WF/ajl
Regraded Unclassified
350
PARAPHRASE OF TELEGRAM SENT
FROM:
Secretary of State, Washington
tos
American Legation, Lisbon
DATED:
April 22, 1944
NUMBER: 1133
CONFIDENTIAL
The Treasury has issued license number W-2177 to the
Jewish Labor Committee, New York City, and you are requested
to inform Paulo Duarte, 17 Rua Padre Antonio, Vierira, Lis-
bon, that notwi thatanding General Ruling Number 11, he is
authorized, as their representative in Portugal, to commun-
icate with persons in enemy or enemy-occupied territory for
the purpose of arranging for the evacuation of persons in
such territory in imminent danger of their lives, to such
places of safety or relative safety as he may select.
License W-2177 is exactly identical with license num-
ber W-2154 which is described in Department's message of
March 18, no. 800, which was issued to the Joint Distribu-
tion Committee, except that Section (B) is identical with
section (B) of license W-2167 described in Department's
message of April 8, no. 991,
You should deem Department's comments in our cable of
March 18, no. 800. to apply to License number W-2177 to the
same extent as if fully not forth herein, Also you are re-
quested to inferm Duarte that the Jewish Labor Committee is
remitting the escudo equivalent of $10,000 to begin operations.
HULL
Regraded Unclassified
351
LBG-374
PLAIN
Lisbon
Dated April 22, 1944
Rec'd 5:15 P.M.
Secretary of State,
Washington.
1208, twenty-second, 2 p.m.
FOR WAR REFUGER BOARD.
VEB 3. Acknowledging Department's telegram 1097,
twentieth, VEB 3.
Remittance received. Thanks, Will keep reco rd and
report. Regarding personal expenses, do you wish to
cover all expenses as has been case heretofore or have
you per diem or other arrangement.
NORWEB
LMS
Regraded Unclassified
352
DME-435
PLAIN
Lisbon
Dated April 22, 1944
Rec'd 8:45 P.M.
Secretary of State,
Washington.
1209, twentysecond, 4 p.m.
VEB 4. Please send following Unitarian Service
Committee, 25 Beacon Street, Bostent
"Greatly disturbed delay Howard Breck's North
African validation. Urgent be accept French Committee's
invitation sconest. he has French visa laisses passer
and Ambassador Wilson approval. Sigged Elisabeth Dexter."
NORWEB
LMB
Regraded Unclassified
353
NNO-425
Lisbon
This telegram must be
paraphrased before being
Dated April 22, 1944
communicated to anyone
other than a Government
Rec'd 7:52 p.m.
agency. (s000)
Secretary of State,
Washington.
1214, April 22, 6 p.m.
WHB number five.
Requested by Joseph Schwarts following for War
Refugee Board and Leavitt joint distribution New York:
"Six children arrived in Spain as first group and
more are expected to follow.
Guides arranged by us brought them thru Pyrennes and
they are now in our care in Barcelona. In addition
26 adults came into Spain which makes a total of 94
new arrivals there. Will attempt to provide children
with visas under United States Commission plan or,
in case of those having close relatives there or
preferring Palestine, certificates for Palestine".
NORMEB
WSB
Regraded Unclassified
354
CABLE TO MINISTER JOHNSON AND OLSIN, STOCKHOLM, FROM WAR REFUGEE BOARD
Please deliver the fllowing message from War Befugee Board
to Rabbi W. s. Wolbe, 11 Olefsgatan, Steckholm, Swedent
QUOTE Gravely disturbed your report of Litbuania. Cable
War Refugee Board for us through American Legation your rescue plans
and if you can utilise funds for relief and resous of Rabbis and
religious leaders is Lithmania. Have cabled 85,800 Buiss france to
Rabbi Shoulevits through Switzerland. Vand Hahatzalah Emergency
Committee, Rabbie Aaron Ketler and Abraham Kalmanowits. UNQUOTE
THIS IS VED STOCKHOLM CABLE NO. 5
April 22, 1944
11:15 Bollo
BAksin:LSLessertals 4/21/44
Regraded Unclassified
355
CABLE TO BREN
From War Befuges Board to Harrison
Your 1754 delayed and just received by War Refugee Board.
McClelland's appointment Special Attache on War Refugee Board matters
approved effective immediately. He should receive base salary of fifty-
six hundred dollars per annum and seven dollar per diem allowance effective
when he assures duties. Salary and per diem payments. as well as miscellaneous
administrative expenditures such as travel, clerical staff if needed, office
supplies and equipment, and rental if necessary. should be paid directly by
the Legatich through usual channels, for which Department will be reimbursed
by War Refugee Board here. In addition, ten thousand dollar credit in
confidential funds for McClelland from President's Emergency Fund being
established at once for which Mc01elland will be responsible to Pehle alone.
These confidential funds are not subject to usual government disbursing
requirements but McClelland should keep careful record and obtain receipts
where possible. These funds may be used at McClelland's discretion but
should not (repeat not) be used for administrative expenses of the sort
being handled through the regular channels of the Legation. McClelland's
duties are as described in our 659. Let us know at once of any obstacles.
April 22, 1944
11:16 gells
Witewart; pdk 4/20/44
Regraded Unclassified
356
CABLE TO BEN
From War Refugee Board to Harrison for McClelland
Board delighted that you have accepted appointment
as its Special Representative. Pehle sends personal thanks and
feels confident that you will do competent job. War Befugee
Board will support you to fullest extent. Phease do not
(repeat not) hesitate to make frequent comments and suggestions.
THIS IS WEB BREN CABLE NO. 3
April 22, 1944
11:15 a.m.
MJNarks:lsk 4/21/44
Regraded Unclassified
357
CABLE TO MINISTER HARRISON AT BERN
Please deliver the following message from War Refugee
Board to Isaac Sternbuch, Postfach 168, St. Gallen, Switzerland;
QUOTE Greatly pleased with your April 7th message.
Suggest necessity that such couriers be supplied with larger
sums and that such funds be given to outstanding personalities,
leaders of communities and former heads of Yeshivoth to save
themselves in whatever possible manner. Ready supply you
additional funds on request. Vaad Hatzalah Emergency Committee
Rabbis Rosenberg Kotler Kahmanowitz. UNQUOTE
THIS IS WRB BERN CABLE NO. 4
April 22, 1944
11:15 s.m.
Regraded Unclassified
358
DRAFT OF CABLE TO AMERICAN LEGATION, BEEN
FOR MINISTER AND McCLELLAND
Please request Pilet Golas to issue the instructions to
Swise Legation at Vichy as suggested in first paragraph your
2315 of April 14. In view non-objection Pilet Golaz we are
appreaching Portuguese and Bire Governments with request for
paralles action. Var Refuges Board would welcome any addi-
tional suggestions you may have for expediting emigration
from France of orphaned and abandoned children subject to
enemy persecution.
For your information consular officers in Spain and
Portugal have received instructions similar those trans-
mitted Departments's 891 for issuance 1,000 immigration
visas. Governments of Canada and Australia and appropriate
other American republics are being approached with sugges-
tion that they make similar offers to Swiss Government
regarding children.
THIS IS WEB BREN CABLE NO. 5
April 22, 1944
13:20 p.m.
MSTandishilem
4-21-44
Regraded Unclassified
359
ORIGINAL THET OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
Amlegation, Bern
DATED:
April 22, 1944
NUMBER: 1395
CONFIDENTIAL
Reference year No. 2301 April 13, 1944, The Turkish
Government has already acted in support of the ICRC request
for safe cenduct for the ss TARI. The Swedish Government
has been asked to support such wquest and has agreed to
de 80. ^ccerdingly you may care to bring these facts to
the attention of Swise Government in an effort to persuade
it to reconsider its decision. Please keep the Department
and War Refugee Beard advised on this matter.
THIS IS WRB BERN CABLE NO. 2
Regraded Unclassified
360
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
Amlegation, Bern
DATED:
April 22, 1944
NUMBER:
1400
CONFIDENTIAL
Reference Department's 1221 of April 10 and 1181
of April 7. Our Embassy in Madrid has been fully advised
concerning the situation of internees at Vittel and other
camps who hold passports, consular documents and other
papers issued in the name of certain Latin American
countries. The Department's above-mentioned No. 1221 of
April 10 was repeated to Madrid. Our Embassy there was
requested urgently to report to the Spanish Government
this Government's preoccupation with this matter and inform
it of our pending discussions with Latin American countries
regarding a further exchange of civilians with Germany, of
our view that persons in Vittel and elsewhere holding Latin
Americanjapers are eligible for such exchange and of our
expectation that pending such exchange they would be ac-
corded the same treatment which Germans wish to see accorded
their civilians in the Western Hemisphere. It was requested
that the Spanish Government be urged to act in Madrid and
Berlin to the end that these persons be given every possible
protection and that it take steps immediately to correct the
impression which might have been created in Berlin regarding
the alleged lack of concern of the countries of the Western
Hemisphere in the treatment of persons holding papers issued
in their name.
With respect to the 238 persons who you reported to have
been evacuated from Vittel, our Embassy was instructed to
request the Spanish Government to make every effort to secure
their return to Vittel.
Please convey the above information to Riegner, Isaac
Sternbuch and other interested organizations. Explain to
them fully the steps which this Government is taking through
the Swies Government and advise them that cables have been
memb to the Latin American countries in whose names papers
have been issued opening discussion on the subject of
exchange of nationals.
On behalf of the War Refugee Board, please deliver
the following message to Isaac Sternbuch from the Vaad
Hahatzala Emergency Committee:
"Please ascertain conditions at Camp Zelle,
Inform us if you have contact with said camps
and what can be done."
Such message should be delivered after you have fully
advised Sternbuch as requested above.
HULL
Regraded Unclassified
361
ORIGINAL TEXT OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
Amlegation, Bern
DATED:
April 22, 1944
NUMBER: 1402
CONFIDENTIAL
FROM THE WAR REFUGEE BOARD TO HARRISON, BERN.
The War Refugee Board requests that you deliver the
following message to Islambek Khan, Afghan Legation, Bernt
QUOTE Proceeding abroad on business expect to arrive Palace
Hotel, Lisbon, May 3. Please come and see me in Lisbon as
soon as possible. Signed David Paul Joffo. UNQUOTE.
HULL
Regraded Unclassified
362
TELEGRAM SENT
RP
PLAIN
War Refugee Board
April 22, 1944
AMLEGATION
BERN.
1405, Twenty-second
FOR THE MINISTER. Please deliver the following to
McClelland from War Refugee Board.
WRB no. 3.
Board delighted that you have accepted appointment
as its Special Representative. Wahle-sends personal thanks
and feels confident that you will do competent job. War
Refugee Board- will support you to fullest extent. Please
do not (repeat not) hesitate to make frequent comments and
suggestions.
HULL
(GLW)
WE A-S/3
FA
WRB :GLW:KG
4/22/44
Regraded Unclassified
363
PARAPHRASE OF TELEGRAM SENT
FROM:
Secretary of State, Washington
TO:
American Legation, Bern
DATED:
April 22, 1944
NUMBER: 1406
SECRET
Reference is made herewith to your cable of April 14,
No. 109.
Such safe conduct as the British Government may agree
to for the movement of the Tari from Istanbul to Constansa
and from thence to Haifa carrying Jewish refugees, is con-
curred in by the Government of the United States. In De-
partment's cable of March 23, no. 970, the Department had
requested the Legation to inform Intercross that this Gov-
ernment concurred in safe conduct for movement of Tari be-
tween Constansa and Istanbul,
HULL
Regraded Unclassified
364
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Bern
TO:
Secretary of State, Washington
DATED:
April 22, 1944
NUMBER: 2581
CONFIDENTIAL
Reference is made herewith to Department's cable of
April 8, no. 1198.
It is stated by Intercross that it is preparing re-
plies to questions one, two and four. Concerning three,
Intercross believes that if Joint Distribution Committee
purphase foodstuffs in Portugal for delivery to Intercross
delegate in Lisbon, matter would be simplified.
HARRISON
Regraded Unclassified
365
PARAPHRASE OF TELEGRAM RECEIVED
FROM:
American Legation, Bern
TO:
Secretary of mate, Washington
DATED:
April 22, 1944
NUMBERS 2591
CONFIDENTIAL
Reference is made herewith to By cable of March 25,
no. 1852.
It is reported by Riegner that in fourth transaction
he has purchased further million French france from Stitel-
seve at rate of Swies france 1.70 por hundred French france.
It is stated by Riegner that he is receiving satis-
fadery reports on continuation of rescue action in France
and evacuation of Jewish groups to 8 pain from Belgium,
Holland, and France continues without interruption. A do-
tailed report on these operations is promised b): him.
HARRISON
Regraded Unclassified
366
PARAPHRASE OF TELEGRAM RECEIVED
FROME
The American Minister, Bern
TO:
The Secretary of State, Washington
DATE:
April 22, 1944
NUMBER:
2592
CONFIDENTIAL
1. It is requested by Jewish organization here that
the funds in question be placed to the credit of Delasem
after being retransferred to the United States and placed
in any convenient American bank. This request has already
been telegraphed to London by Osborne. To enable me to ad-
vise the representative please inform me by telegram if and
when the operation is completed and I should like also to
know the name of the bank.
2. It is requested by organization here that another
twenty thousand dollars be deposited for the account of
Delasem in the above mentioned American bank. When this is
accomplished please advise me by cable.
HARRISON
DCR:MPL
4/24/44
Regraded Unclassified
367
CORRECTION
April 22, 1944
In cable from Ankara 688 April 15 for War
Refugee Board, line 7 delete "presidents" insert
"presidency" delete "Centred" insert "Center". Line
8 "resche" should read "rescue".
DIVISION OF COMMUNICATIONS AND RECORDS
CSB
Regraded Unclassified
368
PARAPHRASE OF TELEGRAM RECIEVED
FROM:
The American Ambassador, Ankara
TO:
The Secretary of State, Washington
DATE:
April 22, 1944
NUMBER:
725
CONFIDENTIAL
As Ankara's number 41 the following message is for the
War Refugee Board.
This morning I was advised by the representative of
the Intercross that an intimation had been received by him
from Intereross that if the destination of the SS TARI is
changed from Haifa to Iskanderun a German safe conduct for
the ship might be granted. I have advised Simond that only
after all hope of securing a German safe conduct to Haifa
must be abandoned would the change be agreeable. Trans-
shipping the refugees at Iskenderun to a United Nations ship
would be involved in such a change of destination.
STEINHARDT
DCR:MPL
4/25/44
Regraded Unclassified
369
PARAPHRASE FOF TELEGRAM RECEIVED
FROM:
American Rubassy, Ankara
TO:
Secretary of State, Washington
DATED:
April 22, 1944
NUMBER: 726
CONFIDENTIAL
Following is Ankara no. 42 for the WRB.
Referwing to the unreserved confidence which Simond
expressed to Hirschmas that von Paper would secure the German
safe=senduct for the ss TARI without delay and that if
it has not yet been secured, the Apostelic Delegate to Istan-
bul and Simond try to ⑉ ven Paper to prese the request
and that I confer with Simond personally without delay,
please inform Hirschman that since his departure, I have
been in constant contact with Simond who has how conferred
with ven Paper on three occasions and that in addition,
the Turk Minister for Foreign Affairs, at my request, has
personally twice requested the German safe-conduct of von
Papen. From the reports I have received from the Turkish
Minister for Foreign Affairs and Simond, I as satisfied
that ver Paper has been pessing for the safe-conduct
from his Government.
STEINHARDT
Regraded Unclassified
370
RECT-561
Ankara
This telegram must be
paraphrased befo e being
Dated April 22, 1944
communicated to anyone
other than a Government
Rec'd 7:55 p.m., 23rd.
Agency. (BR)
Secretary of State,
Washington.
732, April 22, 3 p.m.
FOR THE WAR REFUGEE BOARD FROM THE AMBASSADOR
Ankara number 43.
I perceive no objection to the Board raising with
the Turkish Ambassador in Washington the danger of
deportation to approximately 800 Jews in France who
claim Turkish nationality.
Department's number 350, April 19.
As the Board is aware the Minister for Foreign
Affairs at my request has on two occasions telegraphed
the Turkksh Ambassador in Vichy to lend every possible
assistance to these individuals. It 1s quite possible
that, on receiving word from his Ambassador in Washington
that he has been approached, the Minister may again
communicate with the Turkish Ambassador in Vichy.
STEINHARDT
WTD
Regraded Unclassified
371
NOB - 563
Ankara
This telegram gran must be
paraphrased before being
Rated April 25, 1944.
communicated to anyone
other than a Governmental
Rec'd 7:50 p.m.
agency.
(BR)
Secretay of State,
Washington.
733, April 23, 4:00 p.m.
ANKARA NUMBER 44 FOR THE WAR REFUGEN BOARD
FROM THE AMBASSADOR.
Department's number 351, April 19.
I very such appreciate the Board's generous
telegram and shall of course continue by efforts to
facilitate the disembarkation and transit through
Turkey of refugees irrespective of whether their
arrival in Turkish ports is legal or illegal.
STRINHARDT
NH
Regraded Unclassified
Treasury Department
372
Division of Monetary Research
Date May 5, 1944 19
To:
Miss Chauncey
I think the Secretary would
like to read this.
H.D.W.
MR. WHITE
Branch 2058 - Room 214-1/2
Regraded Unclassified
373
THE FOREIGN SERVICE
OF THE
UNITED STATES OF AMERICA
M
AMERICAN EMBASSY
Rio de Janeiro, Prazil, worll 22, 1944.
My dear Mr. Secretary:
I have received your letter of April 13, 1944,
transmitting B. draft of the joint statement of experts
on the establishment of an international monetary fund.
AS mentioned in my telegram to you of April 20, I trans-
mitted the finel revised draft to Finance Minister
Arthur de Souza Costa, who expressed his appreciation
for your thoughtfulness and courtesy in suggesting
publication in Rio de Janeiro simultaneous with release
in Washington and London.
The text was published in full in today's local
press and the plan 1s receiving widespresd and favor-
able publicity in the newspapers and over the radio. As
of possible interest to your organization, I enclose B
translation of the Finance Minister's public statement
which accompanied the publication of the text.
Dr. Octavio Bulhoes, Brazil's technical expert in
monetary matters, has informed me of his favorable re-
action to the preliminary discussions held in Wishington
last year with Dr. Harry White and his associates.
If in the future I can be of assistance to you in
this or any other matter, please do not hegitate to call
upon me.
Sincerely,
Enclosure:
Transl РАУШОНЯ
The street
Henry Morgenthau, Jr.
Secretary of Treasury,
Washington, D.
C
to
dossess
Regraded Unclassified
374
ACK-400
PLAIN
DEPARTMENT OF STATE Mexico
APR
DATED April 22, 1944
TIONS
RECORDS
REc'd 6:04 p.m.
Secretary of State,
Washington.
605, Twenty-second
FOR THE SECRETARY OF THE TREASURY FROM THE AHBAS-
SADOR.
All principal Mexico City ARILIES this morning
carry front-page banner headlines and full text of
joint statement by Experts on the Establishment of
international monetary fund, clippings are being
transmitted by air mail despatch.
MESSERSMITH
CAW
Regraded Unclassified
375
NOT TO BE RETRA SMITTED
COPY NO. 11
SECRET
OPTEL NO. 129
Information received up to 10 a.m. 22nd April, 1944,
1.
NAVAL.
Anzio. 20th. Ineffective attac by humai torpedoes,
one of which captured intact and two others probably sunk by
patrol craft.
Situation Bombay much improved. Alexandra dock
working normally and clearance atPrinces and Victoria docks
proceeding well,
One of H.M. Submarines off Andamers probably sank
3,500 ton escorted ship 14th and sank a Destroyer 15th.
2.
AIR OPERATIONS
Western Front. 20th/21st. Total 4720 tons dropped by
R.A.F. as follows:-
Cologne. 1020 tons H.E., 722 incondiary including 244
4,000 pound H.E. thick cloud; almost impossible see markers and
flares rapfdly lost in clouds; several earlier crews bombed
on estimated time arrival. Vevertheless attack appeared well
concentrated. Ground defences ineffective; few fighters.
La Chapelle. 1224 tons H.E. attack in 2 phases at about
1- hour interval. Weather clear, some haze. Flares accurate
and initial bombing well concentrated but somewhet scattered
later on account of smoke spoiling visibility.
Ottignies. 910 tons H.E. weather clear, but ground
haze and smoke rendered assessment difficult though bombing
appeared accurately concentrated on markers. No round defences;
few fighters.
Lens. 837 tons H.E., moderate cloud, everal explosions
reported, including 1 very large. Ground defences insignificant;
some fighters.
21st. 238 medium, light and fighter bombers attacked
military constructions Northern France. 4 medium 1 fighter
bomber missing. 119 Thunderbolts bombed 4 Belgian railway
centres.
21st/22nd. Aircraft despatched.
Cologne 24, sea-mining 58, leaflets 15. All
returned safely.
Rumania 21st. Escorted Liberators bombed railway
centres at Bucharest. 189 tons, and Turnul Severin, 35 tons in
bad weather.
Enemy casualties reported in the air 35:21:31.
Ours 6 Liberators, 5 fighters missing.
Regraded Unclassified
376
LOT TO BL RE-TRANSMITTED
COPY NO.
"
SECRET
OPTEL No. 130
Information received up to 10 a.m., 23rd April, 1944.
1. NAVAL
A motor torpedo boat was damaged during engagement
22nd, between our light forces and some E-boats off DEVONSHIRE on 21st/
During abortive air attack on ANDIO 21st our A/A
claimed six aircraft shot down,
In BLACK SEA between 15th and 20th Russian aircraft
claim to have sunk 9 ships and two F-lighters, On evening 20th
e U.S. east-bound convoy was attacked by about 25 aircraft east
of ALGIERS. Two were destroyed. A U.S. Destroyer, a U.S. Liberty
Ship and a British 8,000 ton ship sunk. Two other 7,000 ton
ships damaged but reached port. Approximately same time another
east-bound convoy attacked northeast of BOUGIE by 15 enemy air-
craft. Casualties 1, 1, 3. A French ship, 4,700 tons, was sunk,
2, MILITARY
BURMA. Japanese attack on BISHENPUR 20th repulsed.
On IMPHAL-UKHRUL Road our troops have made further progress to-
wards latter place.
3. AIR OPERATIONS
WESTERN FRONT. 22nd. 804 Fortresses and Liberators
supported by 48 squadrons fighters sent northwest GERMANY. 627
of them bombed HAMM Goods Yards dropping 1056 tons H.E. and 302
incendiary with results mainly good. 147 of remainder bombed
other objectives including HAMM Town, BONN, KOBLENZ and SOEST.
Eight Fortresses, 10 Liberators missing and 7 more Liberators
reported shot down over this country by German Intruders. Enemy,
casualties by fighters 3, 0, 1. Ours 1 fighter. 680 Marauders,
::itchells and Bostons and 108 Spitfire bombers attacked military
constructions in Northern FRANCE. Two forces of Thunderbolt
bombers sent to attack railway targets in FRANCE and BELGIUM.
Full reports not yet received.
22nd/23rd. 1124 aircraft despatched:
DUSSELDORF
594 (29 missing)
BRUNSWICK
265 (4 missing)
LAON Goods Yards
181 (9 missing)
MANNHEIM
17
Military Constructions,
N. FRANCE
2
Bomber Support
19
Intruders
22
Leaflets
24
Preliminary reports: DUSSELDORF - Weather clear, markers well
grouped and easily seen, bombing well concentrated around them.
BRUNSWICK - Thin cloud, otherwise good
visibility, bombing appeared accurate and Mosquito one hour after
attack reported good fires. Ten German Intruders operated over
EAST ANGLIA. One was destroyed. Spitfires shot down a JU 188
off WICK.
Regraded Unclassified