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    "title": "Volume 723, April 20 – April 23, 1944",
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    "ocrText": "Diary\nBook 723\nApril 20-23, 1944\n- A -\nBook Page\nAdams, Charles W.\nSee Deferments, Military\nArgentina\nSee Latin America\n# War Refugee Board\n- B -\nBanks\nSee Revenue Revision\nBrazil\nSee Post-War Planning (Currency Stabilization)\n- C -\nCabaret Tax\nSee Revenue Revision\nChina\nBritish loan of E50 million - resume of situation -\n4/22/44\n723 324\nCorrespondence\nMrs. Forbush's mail report - 4/21/44\n234\n- D - -\nDeferments, Military\nResume of Treasury situation by Bell - 4/20/44\n131\nConference: present: HMJr, C.S. Bell, and Jordan -\n4/21/44\n194\na) Adams (Charles W.) deferment discussed\nb) Internal Revenue, Bureau of\nMint, Bureau of\nProcurement Division\nTreasurer, Office of\nWar Finance Division\nDeferments, under 26, by Board, not Treasury, discussed\nby 9:30 group - 4/28/44: See Book 725, page 17\n- E -\nEccles, Marriner S.\nSee Post-War Planning: Currency Stabilization\nEmployee Relations\nPrizes for suggestions in re comfort of employees -\nHMJr's memorandum to Mrs. Doyle and C.S. Bell -\n133\n4/20/44\nRegraded Unclassified\n- I -\nBook Page\nFederal Reserve System\nSee Financing, Government\nFedhala Refugee Camp\nSee War Refugee Board\nFinancing, Government\nFederal Reserve System: Ability to support market for\nUnited States securities, etc., reviewed in Murphy\nmemorandum \"Federal Reserve Ratio\" - 4/20/44\n723 139\nFinland\nSee War Refugee Board\n- G -\nGold\nSee Latin America: Argentina\n- I -\nIndia\nSee Lend-Lease\nIntergovernmental Committee on Refugees\nSee War Refugee Board\nInternal Revenue, Bureau of\nSee Deferments, Military\n- L -\nLatin America\nSee also War Refugee Board\nArgentina: Shipment of gold to Switzerland - use of\nBritish navicert system to prevent discussed in\nO'Connell memorandum - 4/20/44\n145\na) HMJr strongly approves\n146\n(Brazil\n(Mexico\nSee Post-War Planning (Currency Stabilization)\nLend-Lease\nSilver to India: Resume of negotiations - 4/22/44\n306\nU.S.S.R.\nExports to in February 1944 - 4/21/44\n249\nReport for March 1944 and nine months ending\nMarch 31, 1944, toward fulfillment of Third Protocol - -\n4/22/44\n307\nUnited Kingdom: Federal Reserve Bank of New York\nstatement showing dollar disbursements, week ending\nApril 12, 1944 - 4/21/44\n250\n- X - -\nMexico\nSee Post-War Planning: Currency Stabilization\nMint, Bureau of\nSee Deferments, Military\nRegraded Unclassified\n- P - -\nBook Page\nPost-War Planning\nCurrency Stabilization\nInternational Conference\nEccles as member of delegation discussed by HMJr,\nWhite, O'Connell, and Smith - 4/20/44\n723\n42\nPress conference arranged by HMJr, White, Smith,\nLuxford, Bernstein, and Shaeffer - 4/20/44\n45\nFDR brought up to date on testimony before Senate\nand House Committees, on Russian and British\ncooperation - - 4/21/44\n232\n(See also Book 724, page 150 - 4/26/44)\nBrazil: Final revised draft published in Rio\nsimultaneously with release in Washington and\nLondon - - 4/22/44\n373\nMexico: Final revised draft published in Mexico City -\n4/22/44\n374\nU.S.S.R. : Final revised draft published in Moscow -\n4/25/44: See Book 724, page 148\nProcurement Division\nSee also Deferments, Military\nSurplus Property, Disposal of\nConstruction Equipment: Results of conference reported\nby Mack - 4/20/44\n142\n- R - -\nRevenue Revision\nCabaret Tax: HMJr strongly favors retention of 30% tax -\n4/20/44\n135\n\"Increase in earnings of banks and all active American\ncorporations (after taxes) since 1932\" - - White\nmemorandum - 4/20/44\n141\n- S - -\nSilver\nSee Lend-Lease: India\nSpain\nSee War Refugee Board\nStabilization Fund\nGold transactions for three months ending March 31, 1944 -\n4/21/44\n247\nStatements by HMJr\nBefore Senate and House Committees. on International\nStabilization Fund - 4/21/44\n205\n(For previous drafts see Book 722: Post-War\nPlanning - Currency Stabilization)\n- T - -\nTaxation\nSee Revenue Revision\nTreasurer, Office of\nSee Deferments, Military\nRegraded Unclassified\n- U -\nBook Page\nU.S.S.R.\nSee also Lend-Lease\nPress comments reviewed in Harriman cable - 4/20/44\n723\n25\n- W -\nWar Finance Division\nSee Deferments, Military\nWar Refugee Board\nSpain: Corcoran may still go to Spain - - Pehle memorandum -\n4/20/44\n147\nFedhala Refugee Camp near Casablanca to be transferred\nto United Nations Relief and Rehabilitation\nAdministration - 4/20/44\n148\nFinland: General attitude toward refugees discussed in\ncable from American Minister, Helsinki - 4/20/44\n152\nIntergovernmental Committee: House of Commons debate on -\n4/21/44\n255\nReports for weeks of April 10-16 and 17-22 - 4/21/44\n277,329\nArgentina: Resume of situation - 4/21/44\n286\n1\nApril 20, 1944\n10:00 a.m.\nCONVERSATION WITH AMBASSADOR HARRIMAN AT MOSCOW\nPresent: Mr. White\nMr. Luxford\nMrs. Klotz\nH.M.JR: What cables have gone, in case he refers\nto other cables?\nMR. WHITE: From him, we haven't heard anything,\nbut - do you want to jot down the numbers, or do you\nwant the cables?\nH.M.JR: I want the cables. (Mr. White hands\ncables to the Secretary)\nMR. WHITE: Here is the one (indicating). It is\nin the very first paragraph.\nH.M.JR: All right.\nMR. WHITE: Here is the later cable in which we\ninformed him.\nH.M.JR: This is No. 938 that this refers to. And\nthen you give them the release?\nMR. WHITE: They have the release in another cable.\nWe informed him that we sent a similar message to the\nearlier one, to the Chancellor of the Exchequer. This\ncable tells him they have agreed. If he knows about\nthis cable sent on April 17--\nH.M.JR: You took an awful chance on that.\nRegraded Unclassified\n2\n- 2 -\nMR. WHITE: Well, Bernstein and Luxford sold me.\nThey were right. They decided to take a chance. We had\na couple more conversations that morning with Opie.\nH.M.JR: But this is the group - April 10, April\n17, and April 19 - there is nothing else?\nMR. WHITE: No.\nH.M.JR: Then what you want is the Russians to\nsay what?\nMR. WHITE: Yes or no.\nMR. LUXFORD: Yes is what we want.\nMR. WHITE: Yes if they are in agreement, no if\nthey haven't given their word. They might have some\nexcuse. They might say they wouldn't know until next\nweek, or something like that. We want merely to be able\nto say they are in agreement.\nH.M.JR: Now I am ready. If the call had come\nthrough at ten o'clock, I wouldn't have been ready.\nMR. WHITE: That is a good thing.\nMR. LUXFORD: The cable that went out last night\ntold Harriman to say yes or no.\nH.M.JR: They say these cables take three days to\nget through.\nMR. WHITE: When you received your message, then,\nit was not at all certain that he had received this\ncable, but merely that the telephone operators had\ncontacted him.\nH.M.JR: Oh, they started at nine o'clock this\nmorning. They said he couldn't talk at ten-thirty,\nbut he could talk at ten.\nWhat is Smith doing?\nRegraded Unclassified\n3\n- 3 -\nMR. LUXFORD: Working on the statement.\nH.M.JR: Did he hear about our decision to have\na press conference at four-thirty today?\nMR. LUXFORD: Yes.\nH.M.JR: If they waited until four-thirty tomorrow\nit wouldn't get through until around six and wouldn't\nappear in 8. single paper. Fred was amazed that White\nagreed to it.\nThe 866 is the first part, rather than the 865.\nWhat did you change the number for?\nMR. WHITE: Because they are both parts of the same\ncable.\nH.M.JR: Let me have 865.\nMR. WHITE: No.865 apparently comes after 866.\nH.M.JR: That is what I thought. They sent the\nlast part first.\nMR. LUXFORD: They send things in part.\nH.M.JR: Let's do a couple of questions while we\nare here. (The Secretary reads from attached list of\nquestions and answers)\n\"Will the Fund control the gold value of the United\nStates dollar?\"\nMR. WHITE: Definitely not. That remains the power\nof the United States, exclusively. It can be altered\nby the Fund, but only with the approval--\nH.M.JR: Can we alter the gold content?\nMR. WHITE: The gold value - only with the approval\nof the United States.\nRegraded Unclassified\n4\n- 4 -\nH.M.JR: They can take the initiative?\nMR. WHITE: Yes. They can't alter the gold content\nof the dollar, but what they can say is that the value\nof gold in terms of all currency shall rise or fall,\nand we accepted that only on the condition that it would\nrequire our approval.\nMR. LUXFORD: In other words, they still can't do\nit without our approval.\nH.M.JR: Who advocated that?\nMR. WHITE: A lot of the countries. You see, there\nare two groups. One group thought that some day there\nwould be too much gold. Our friends in the Federal\nReserve Board would like to lower the price of gold 80 as\nto reduce the mining of gold over there, and they had\n8. lot of company - - the countries that don't produce gold.\nThe countries that produce gold wanted it the other way -\nSouth Africa, particularly - Australia, and others.\nThey might simply want to increase it.\nSo a compromise was made. We said that no country\nthat - you can't change it except with the approval of\nall countries that have more than ten percent of the\nvotes now. That includes--\nH.M.JR: All the countries?\nMR. WHITE: That have more than ten percent of the\nvotes.\nH.M.JR: \"Would it not be better to wait before attempt-\ning to stabilize currencies?\"\nMR. WHITE: The most acute period will be in the\nimmediate post-war period, where there are a number of\ncurrencies that have to be adjusted and where the pressure\non the currencies of some countries will be the greatest,\nand where the struggle for world markets will be the\nkeenest after six months or a year.\nRegraded Unclassified\n5\n- 5 -\nAnd it is very important that during that acute\nperiod there is international cooperation to prevent\nchaotic exchange conditions such as occurred in the\nlast war.\nH.M.JR: \"Will the Fund be used for the liquidation\nof blocked sterling balances?\"\nMR. WHITE: No. That is out. No.\nH.M.JR: You have the question.\nMR. WHITE: That suggestion was in our first draft.\nThe British objected to it. They would like it, but\nthey think its presence in there - you can't say - this\nis for your own information - its presence in there makes\nit more difficult for them to make a better deal with\nIndia or some of the other œuntries, 80 they asked us\nto leave it out. As it stands now, the answer is no,\nbut it being in an earlier draft, some people may ask.\nH.M.JR: Couldn't they try it?\nMR. WHITE: They have the power to do so, if they\nwant to.\nH.M.JR: I mean, that is England's one big problem.\nWhy shouldn't they try it?\nMR. WHITE: Because they think they don't have to\nliquidate India still. They think they can make & deal\nwhich will be more satisfactory than the kind of conditions\nthat we imposed on them.\nH.M.JR: I think the more honest answer - I am not\nquestioning you - would be to say, \"Well, that is a\nproblem; they may bring it up. It is a problem that the\nBritish had and it might help them.\"\nMR. LUXFORD: Under the principles today, though,\nthey couldn't solve that problem.\nRegraded Unclassified\n6\n- 6 -\nMR. WHITE: No, but they could bring it up at the\nconference and include it in the powers.\nH.M.JR: It is the one thing that is bothering\nChurchill.\nMR. WHITE: But they were the ones who asked us to\ntake it out.\nH.M.JR: That may be for trading purposes. But\nthere is nothing in it saying they can't liquidate.\nMR. WHITE: Some changes or additions would have to\nbe made in the final draft if that problem was to be\nundertaken.\nH.M.JR: \"Would the United States be bound to stay\nin the Fund if membership proved disadvantageous?\"\nI know that.\nMR. WHITE: On notice.\nH.M.JR: \"Will the Fund support the price of silver?\"\nDon't give me that kind of stuff.\nMR. WHITE: There is nothing in there that has any-\nthing to do with silver.\nH.M.JR: Why not say so?\nMR. WHITE: Because the fellow who will ask you will\nonly be the man who is interested in silver. Silver plays\nno direct role.\nH.M.JR: That is what I would say.\n\"Would joining the Fund mean that Congress will not\nhave control of our monetary system?\"\nThe answer to that is no.\nRegraded Unclassified\n7\n- 7 -\nMR. WHITE: That is right.\nH.M.JR: \"Will the United States be forced to insti-\ntute exchange controls?\"\nMR. WHITE: No. If we want to--\nH.M.JR: Isn't it better to say the whole purpose\nis 80 we will not have exchange control?\nMR. WHITE: To discourage it, that is right.\nH.M.JR: \"Does the establishment of the Fund mean the\nabandonment of the gold standard?\"\nMR. WHITE: On the contrary, it means a strengthening.\nH.M.JR: \"Why can't the BIS do the job?\"\nMR. WHITE: The BIS can't do the job because it has\nneither the powers, the resources, not is the membership\nbroad enough. It has nothing other than a building of\n& name.\nH.M.JR: They didn't behave too well.\nMR. LUXFORD: That is right.\nMR. WHITE: If that question is asked, it will be\npeople on the outside who will be - a few - interested\nin your answer from the point of view of picking you\nup if you say anything very adverse. So I think you\nbetter answer that cautiously. But the Bank has very\nlittle resources. It has none of the powers that are\nnecessary for this purpose. It is owned by the Central\nBank and not by the Governments.\nMR. LUXFORD: Doesn't even have Federal Reserve\nBank participation on the part of the United States.\nMR. WHITE: And it is at present practically\ncontroiled by Germany, because Germany votes with the\nRegraded Unclassified\n8\n- 8 -\ncountries she has occupied. England has withdrawn her\nMember.\n(The Secretary holds telephone conversation with\nAmbassador Harriman in Moscow, as follows:)\n9\nApril 20, 1944\n10:07 a.m.\nHMJr:\nHello.\nOperator:\nThe Secretary is on, Operator.\nHMJr:\nHello.\nOverseas\nOperator:\nHello. Secretary Morgenthau?\nHMJr:\nTalking.\nOperator:\nThis is the overseas operator 80 awaiting your\ncall to Moscow I'd like to advise you about\nGovernment regulations. In the interest of\nNational security you are requested to refrain\nfrom discussing departure or arrival, name or\nlocation of ships, military traffic of any kind,\ntechnical weather information or any other infor-\nmation which may be of aid or comfort to the\nenemy.\nHMJr:\nThank you.\nOperator:\nYou're welcome, sir.\nHMJr:\nHello. Hello. Hello.\nTreasury\nOperator:\nShe'll put him on in just a second.\nHMJr:\nHello.\nOperator:\nYes, sir.\nHMJr:\nOh, you're still there?\nOperator:\nYeah, I'm still here. Do you want me to hold it\nfor you?\nOverseas\nOperator:\nGo ahead, please.\nHMJr:\nHello. Hello. Hello.\nOperator:\nJust a moment, Secretary Morgenthau. (Pause)\nTreasury\nOperator:\nHello, New York.\n(Pause)\nHMJr:\nHello.\nRegraded Unclassified\n10\n- 2 -\nOverseas\nOperator:\nI'm sorry to keep you waiting, Secretary Morgenthau.\nHMJr:\nThat's all right.\nTreasury\nOperator:\nWould you like me to hold it for you?\nHMJr:\nDon't they like to have me on? I don't care.\nOperator:\nNo, they don't mind.\nHMJr:\nAll right.\nOperator:\nI thought maybe you would mind.\nHMJr:\nWell, I -- my hand is getting tired.\nif\nRegraded Unclassified\nApril 20, 1944 11V\n10:24 a.m.\nOperator:\nGo ahead.\nHMJr:\nHello.\nAverill\nHarriman:\nHello.\nHMJr:\nHello.\nH:\nHello.\nHMJr:\nAverill?\nH:\nYes.\nHMJr:\nHello.\nH:\nHello.\nHMJr:\nAverill?\nH:\nYes.\nHMJr:\nCan you hear me?\nH:\nYes, I hear you very well.\nHMJr:\nAverill, I don't know . -- did you get Cable 961?\nH:\nWhat?\nHMJr:\nHave you received Cable 961?\nH:\nYes, I got your cable.\nHMJr:\nYes.\nH:\nThe answer 1s \"No\".\nHMJr:\nHello?\nH:\nI say, the answer is \"No\".\nHMJr:\nThe answer is \"No\"?\nH:\nThey have not informed....\nHMJr:\nWait -- I don't hear you.\nRegraded Unclassified\n12\n- 2 -\nH:\nThey have not been\n....\nHMJr:\nThey have not got the time?\nH:\nThey have not had time to give your message ....\nHMJr:\nWell, now....\nOperator:\nJust a moment, please.\nHMJr:\nThat's all right. (Aside: They haven't had enough\ntime to give him .... No, I can hear him.) Hello.\nOh. (Aside: Do you think it draws on it?) Hello.\nOperator:\nYes, sir.\nHMJr:\nWhich one of these things draws down most, the\ndictaphone or the loud speaker?\nOperator:\nI think the loud speaker.\nHMJr:\nYou think the loud speaker?\nOperator:\nI think 80.\nHMJr:\nWell, I could hear him. Tell the operator I could\nhear him.\nOperator:\nOh, is he gone?\nLong\nDistance\nOperator:\nLong Distance.\nHMJr:\nHello, Operator.\nOperator:\nYes.\nHMJr:\nI could hear Mr. Harriman, you know.\nOperator:\nYes.\nHMJr:\nYou cut me off. ;\nOperator:\nNo, we haven't cut you off. Just a moment. I'll\nsee what happened over there.\nOverseas\nOperator:\nJust a moment, please. Hello?\nRegraded Unclassified\n13\n- 3 -\nHMJr:\nI could hear him. Hello? Hello?\nOperator:\nYes, sir.\nOverseas\nOperator:\nHello, Secretary Morgenthau?\nHMJr:\nYes.\n(Pause)\nOperator:\nThe operator says the overseas operator says\nthey interrupted because the connection was so\ndistant.\nHMJr:\nWell, I could\nOperator:\nShe said she's trying to get a better connection\nover there. I told her that you could hear him.\nHMJr:\nI could hear him.\nOperator:\nUh huh. Well, just a minute now. She'll have\nhim back on.\nHMJr:\nHello.\nOperator:\nYes, sir. Shall I ask the telephone man if it\nmakes any difference?\nHMJr:\nWhat?\nOperator:\nShall I ask one of the telephone men if it makes\nany difference?\nHMJr:\nYes. Which one makes -- if it makes any difference.\nOperator:\nRight.\nHMJr:\nWill you let me know?\nOperator:\nI will.\nRegraded Unclassified\n14\nApril 20, 1944\n10:28 a.m.\nOperator:\nYes.\nHMJr:\nCan you hear any difference now?\nOperator:\nI can't tell any difference at all.\nHMJr:\nAll right. Well, then I can -- the loud speaker\ndoes not?\nOperator:\nHe said the loud speaker wouldn't make any difference.\nHMJr:\nAll right. Now -- Hello.\nAverill\nHarriman:\nHello.\nHMJr:\nAverill?\nH:\nYes.\nHMJr:\nI hear you very well. I heard you say the answer\nwas \"No\".\nH:\nYes.\nHMJr:\nAnd that they didn't have....\nH:\nDidn't have time\nHMJr:\nWhat's that?\nH:\nThere hasn't been time.\nHMJr:\nThere hasn't been time?\nH:\nHe hopes that you can be -- that you will be able\nto wait.\nHMJr:\nWell, I am testifying before the Senate Friday\nmorning.\nH:\nWhat day?\nHMJr:\nFriday.\nH:\nFriday?\nHMJr:\nAnd before the House Friday afternoon.\nRegraded Unclassified\n15\n- 2 -\nH:\nYeah.\nHMJr:\nAnd that's all been arranged.\nH:\nYes.\nHMJr:\nI -- I cannot wait.\nH:\nWell, I told them -- I said that you probably\ncould not wait.\nHMJr:\nNo, I can't wait. And, as you know, we've got\nagreement from everybody else.\nH:\nYes.\nHMJr:\nHello?\nH:\nYes.\nHMJr:\nAnd we're releasing Friday night this statement.\nH:\nYes.\nHMJr:\nFor Saturday morning.\nH:\nYes.\nHMJr:\nAnd I had hoped that they would join us.\nH:\nWell, there was a desire expressed that you might\nbe able to wait but they haven't been able to hear\nfrom their experts.\nHMJr:\nWell, I -- I don't understand that. Do you mind\nif I find out what happened at this end from their\nexperts?\nH:\nI wish you would. I think it's important that you\nshould.\nHMJr:\nAnd they're waiting on their experts.\nH:\nYes.\nHMJr:\nHello?\nH:\nYes.\nHMJr:\nWell, I'll call up....\nRegraded Unclassified\n16\n- 3 -\nH:\nAnd there were a few other points in the\noriginal text\n....\nHMJr:\nYes.\nH:\n....\nthat seemed to trouble them.\nHMJr:\nI see.\nH:\nSo that it's mostly dangers and the -- of certain\npoints that are not yet ironed out.\nHMJr:\nWell, at this end from the top down, there's\ncomplete unanimity.\nH:\nYes.\nHMJr:\nI mean, in our Government. Hello?\nH:\nYes.\nHMJr:\nI just want you to know that.\nH:\nFine. I wish I could talk more freely. How are\nyou?\nHMJr:\nI'm fine. And you?\nH:\nFine.\nHMJr:\nWell\nH:\nGive my love to the Boss when you see him.\nHMJr:\nI'll do that and thanks for what you've done\nand if you'd keep up the pressure, I'd appreciate\nit.\nH:\nOne trouble 1s, the cables take 80 long.\nHMJr:\nThat's why I'm phoning you.\nH:\nYes. I'm just sending you a cable explaining\nit in more detail.\nHMJr:\nThank you, Averill.\nH:\nFine.\nHMJr:\nGood bye.\nH:\nGood luck.\nRegraded Unclassified\n17\n- 9 -\nMR. WHITE: If I had known you could hear as well\nas that, we should have done it a week ago.\nH.M.JR: You suggested it last night.\nMRS. KLOTZ: This. is amazing.\nMR. WHITE: The first time left some doubts in my\nmind as to the wisdom of telephoning.\n(The Secretary holds telephone conversation with\nFirst Secretary Bazykin, as follows:)\n18\nApril 20, 1944\n10:34 a.m.\nHMJr:\nHello.\nOperator:\nThe Ambassador is not there now. They expect\nhim about 11:30.\nHMJr:\nWell, who is there? Is the First Secretary\nthere?\nOperator:\nI'll find out.\n(Pause)\nOperator:\nGo ahead.\nHMJr:\nHello. Mr.\n....\nVladimir\nBazykin:\nYes, how are you, Secretary Morgenthau?\nHMJr:\nI'm very....\nB:\nThis is Bazykin.\nHMJr:\nHow are you?\nB:\nVery well, thank you.\nHMJr:\nMr. Bazykin, I have just talked on the telephone\nto Ambassador Harriman in Moscow.\nB:\nYes.\nHMJr:\nAnd I inquired from him why we did not have an\nanswer from your Government in regard to this\nstatement on the stabilization of money\nB:\nYes.\nHMJr:\nwhich we hoped to announce Friday night.\nB:\nYes.\nHMJr:\nNow, I don't know how familiar you are, but I\nam testifying before four Committees in the\nSenate Friday morning.\nB:\nYes.\nHMJr:\nAnd four Committees in the House Friday afternoon.\nB:\nYes.\nRegraded Unclassified\n19\n- 2 -\nHMJr:\nOn this plan. And all of the countries involved\nhave -- we've heard from except your Government\nand the plan 18 to give out a joint statement\nin the various Capitols Friday night for Saturday\nmorning's publications.\nB:\nYes, I see.\nHMJr:\nAnd we had hoped very much that your Government\nwould join us. Now, in talking with Mr. Harriman,\nhe says that your Government had not yet heard\nfrom your experts, which is very difficult for me\nto believe.\nB:\nI see.\nHMJr:\nAnd\nB:\nIt was answer to our Government - to Mr. Harriman.\nHMJr:\nYes, that they had not yet had time\nB:\nYes.\nHMJr:\nto hear.\nB:\nI see.\nHMJr:\nAnd that there were one or two points in dispute.\nWell, of course, the two statements contradict\neach other.\nB:\nYes.\nHMJr:\nBut with everybody going along on this and it's\nsimply a declaration of principles -- I mean, it\ndoesn t bind anybody. You see? .\nB:\nYes.\nHMJr:\nI wondered whether you might still have time to\nget an answer 80 that it would seem that all United\nNations were together.\nB:\nYes. Thank you very much, Mr. Secretary, for your\ncalling. I know that the Ambassador communicated\nwith Moscow after our visit with you....\nHMJr:\nYes.\nRegraded Unclassified\n20\n- 3 -\nB:\nat the Treasury Department and I will\nimmediately see him and I will regret to\ninform him what you told me and\nHMJr:\nShould\nI....\nB:\nI am sure that he will undertake what he\ncan do.\nHMJr:\nShould I say it once more or did I -- do you\nunderstand it?\nB:\nNo, I understood everything.\nHMJr:\nAnd you see the point is -- well, if you under-\nstand it -- and if there's any point you don't,\nMr. White's available. But there's still time,\nyou see....\nB:\nYes, sir.\nHMJr:\nfor us to hear from Russia.\nB:\nYes.\nHMJr:\nAnd -- the Soviet Union.\nB:\nYes.....\nHMJr:\nAnd....\nB:\n....Mr. Secretary.\nHMJr:\nSee what you can do.\nB:\nAnd you say that there is an idea to make the\ndeclaration -- joint declaration -- in all Capitols\nof the United Nations?\nHMJr:\nWe've heard from everybody except your Government.\nB:\nI see.\nHMJr:\nAnd the announcement is to be made at eight o'clock\nFriday night.\nB:\nEight o'clock.\nHMJr:\nIn this Capitol.\nRegraded Unclassified\n21\n4 -\nB:\nYes.\nHMJr:\nAnd it will be made in London and it's going to\nbe made in Canada and it's going to be made in\nChungking and a number of other places. They're\nall going to make a joint announcement.\nB:\nJoint announcement at eight o'clock in the morning?\nHMJr:\nNo, eight o'clock tomorrow night.\nB:\nTomorrow night.\nHMJr:\nNow the other thing which is embarrassing to\nme, you see, I am to appear before these Committees\nB:\nYes.\nHMJr:\nin our Senate and in our House tomorrow\nB:\nYes, I remember you told the\nHMJr:\nand I\nB:\nthe Ambassador.\nHMJr:\nAnd I had hoped very much that -- because as far as\nI know, there's practically no difference.\nB:\nYes.\nHMJr:\nAnd I imagine it's due to difficulties in communica-\ntion possibly and your Government hasn't been fully\ninformed. But it's something which I should think that\nthe Soviet Union, of all the Countries, would want\nto subscribe to.\nB:\nYes.\nHMJr:\nI mean you get as much out of it, or more, than\nanybody else.\nB:\nYes. And I will be very glad to inform the\nAmbassador, Mr. Secretary, and I am sure that he\nwill do everything possible to get....\nHMJr:\nDo you ever use the telephone?\nB:\nWe do sometimes if assured conditions are not 80\ngood, but I will ask him\nRegraded Unclassified\n22\n- 5 -\nHMJr:\nWell, ....\nB:\nif he can.\nHMJr:\nWell\nB:\nIf it's not too late.\nHMJr:\nWell, the phone -- I was informed -- I didn't\nknow we could talk -- you can talk from nine\n'till eleven in the morning.\nB:\nYes.\nHMJr:\nAnd I had an excellent connection with Mr.\nHarriman. I could hear him almost as well as\nI can hear you.\nB:\nI see. I'll recommend to the Ambassador\nHMJr:\nWould you recommend.\nB:\nto telephone.\nHMJr:\nthat he might put in a telephone call tomorrow\nmorning?\nB:\nI think BO. Yes, I'll recommend him to call.\nI think it might be the best way to get Moscow\nimmediately.\nHMJr:\nIf you would, because as I say it's for the\ngeneral effect on the world, I think, it's most\nimportant that Russia be amongst those.\nB:\nYes, I'll be very glad to inform the Ambassador\nimmediately and I am sure, maybe, he will call.\nI will advise him.\nHMJr:\nAnd I'm available any time today or tonight if\nthe Ambassador wants to talk to me.\nB:\nYes. Thank you very much.\nHMJr:\nI'm available.\nB:\nThank you very much.\nHMJr:\nThank you.\nB:\nThank you. Good bye.\n23\n- 10 -\nMR. WHITE: I didn't think that the Ambassador said\nthey hadn't heard from the experts, but that they hadn't\ntime.\nH.M.JR: Listen, what Harriman said to me was two\nthings - they hadn't heard from their experts, and the\nlast thing he said was, \"But there are a couple of points\nnot in agreement.\" The two things are in conflict.\nSo I said that.\nMR. LUXFORD: Will we get their conversation if they\ntalk to Moscow?\nH.M.JR: Yes, through Gaston's office; you can take\nit up with the censorship people. He is on that Board,\nI think.\nMR. WHITE: Their experts are on the spot. If they\nsaid they haven't communicated--\nH.M.JR: Tell them we think the Ambassador is\ngoing to speak to Moscow tomorrow and we would like\nimmediate translation 80 I could have it immediately.\nMRS. KLOTZ: I don't think they will call.\nMR. LUXFORD: We will find out whether they call,\nanyway.\nH.M.JR: I think through Gaston's office.\nNow, one other thing while I have you here - with\nthis gold imminently going into Switzerland, and all that,\njust as soon as you fellows can catch your breath, let's\nmove in on the Argentine.\nMR. LUXFORD: All right.\nH.M.JR: I am sick and tired of all this shadow-\nboxing, because - I know that you will reluctantly go\nalong, but you can overcome it. (Laughter)\nRegraded Unclassified\n24\n1. Will the Fund control the gold value of the United\nStates dollar?\n2. Would it not be better to wait before attempting to\nstabilize currencies?\n3. Will the Fund be used for the liquidation of blocked\nsterling balances?\n4. Would the British Empire have a larger vote than the\nUnited States?\n5. Would the United States be bound to stay in the Fund\nif membership proved disadvantageous?\n6. Will the Fund support the price of silver?\n7. Would joining the Fund mean that Congress will not have\ncontrol of our monetary system?\n8. Will the United States be forced to institute exchange\ncontrols?\n9. Does the establishment of the Fund mean the abandon-\nment of the gold standard?\n10. Why can't the B.I.S. do the job?\n11. Will the fund compete with banks on exchange trans-\nactions?\nRegraded Unclassified\n25\nDepartment OF STATE\nDIVISION OF COMMUNICATIONS AND RECORDS\nMEMORANDUM\nWith reference to the Secretary\nof State's letter of January 1, 1944\nthere is transmitted herewith a para-\nphrase of a telegram from Loscow con-\ntinuing Ambassador Harriman's inter-\npretive comment upon developments in\nand respecting the Soviet Union as\nreflected in the Soviet Press.\no\nMay 2, 1944\nHA\n26\nPARAPHRASE OF TELLGRAM RECEIVED\nFROM: American Embassy, Loscow\nTO:\nSecretary of State, Washington\nDATED: April 20, 1944\nNUMBER: 1369\nThis report covers the period from March 9 to April\n15.\nApparently with the general purpose of exhorting\nthe people to increased efforts for the drive for final\nvictory the press continues to concentrate on the war\nand to publicize accomplishments on the home front as\nwell as the military.\nSoviet political policy is unfolding, as applied\nto specific problems of individual countries, with the\nadvance of the Red Army toward and into neighboring\ncountries. The trond of Soviet diplomacy is becoming\npositive and increasingly active. These developments\nare in pattern consistent with the basic policies pre-\nviously outlined by Soviet officials, but the determina-\ntion and readiness to take independent action in some\ncases is startling in aggressiveness. Commensurate with\nits power and with the sacrifices it has made toward\nwinning the war, it is increasingly clear through the\nannounced policies and articles in the press that the\nSoviet Union intends to play an important role in inter-\nnational affairs.\nThe Soviet\nRegraded Unclassified\n27\n-2-\nThe Soviet Union gives no indication that they do\nnot value the relations they have attained with ourselves\nand the British. It is obvious, on the other hand, that\nthey are unwilling to compromise certain basic principles\nwhich they believe are essential to the interests and\nsecurity of the Soviet. The western boundaries estab-\nlished in 1940, with the exception of the compromise\nCurzon line for the boundary with Poland, are, from\nFinland to the Black Sea, considered fixed and irrevo-\ncable. Although full opportunity for political expres-\nsion of the Communist parties appears a fixed objective,\nany semblance of a cordon sanitaire is to be ended, but\nconfirmation is evidenced by Molotov's announcement re-\ngarding Rumania and exchange of representatives with\nthe Badoglio Government that Communist form of Govern-\nments in Europe is not a present objective of the Soviets.\n(1) In IZVESTIYA'S article of March 29, the Soviet\ndecision to exchange direct representatives with the\nBadoglio Government was justified as part of the Soviet\npolicy of assisting all movements tending to shorten the\nwar against the German Fascisti. By proventing the\nunity of all anti-Hitler Italian groups in the struggle\nagainst the Hitlerites, the article stated that the\npolitical situation in Italy had created disunity\nwhich\nRegraded Unclassified\n28\n-3-\nwhich threatened Italy with disaster and above all\ntended to prolong the war, Arguing that heretofore\nthe Soviets had lacked adequate representation in Italy\nin comparison with the Allies, the editorial at the same\ntime indirectly criticised the Allies for allegedly not\nworking out, together with the Soviets, a common policy\nfor Italy.\nThe independent character of Soviet action contra-\nry to the spirit of the Moscow understanding was ignored\nby the Soviet press and an attempt to take leadership in\nadvancing policies that had consistently been those of\nthe Americans and British in Italy and which they had\nbeen pressing in full consultation with the Soviets was\nmade by them.\n(2) In connection with what was designated as the\nentry of Soviet troops into Rumanian territory, Molotov's\nstatement confirmed that the Soviets had no territorial\naims in Rumania and that any attempt to alter the social\nand political order existing there had not been their\nintention. Not only in relation to Rumania, but also\nas an indication of Soviet policy toward neighboring\ncountries in general, this statement was important.\nShortly before the statement was made the fact that\nGreat Britain and the United States were informed was\nan encouraging\nRegraded Unclassified\n29\n-4-\nan encouraging sign of Soviet willingness to collaborate\nand in previous and subsequent discussions of the\nRumanian question this willingness has been further con-\nfirmed. By its reference to the arrival of the Red Army\nat the \"state frontier\" at the Pruth, the press at the\nsame time made clear that the Soviet maintained its\nposition on the Soviet Rumanian boundary question and\nits claim to Bessarabia.\n(3) The occupation of Hungary was pointed out as\na further drain upon German cilitary strength and that\nby withdrawing forces which might have been used against\nthe Allied invasion in the west new favorable military\npossibilities for the western Allies were thereby created.\nThe consequences of continued association with Hitlerite\nCermany WOS taken as the theme of editorials warning other\nAxis satellites of a fate similar to that of Hungary.\n(4) However, without advocating a direct break with\nthe Puric Government, the press carried further its ten-\ndency to view Tito's movement as virtually a Government\nin Yugoslavia. Tito was regarded as the only representa-\ntive of the Yugoslav people in Yugoslavia Ambassador\nSemic's letter of resignation published by PRAVDA and\nRED STAR. Attacks even sharper than previously made on\nMihailovich\n30\n⑉5⑉\nMihailovich and publicity was given the request that\nYugoslav funds abroad be frozen which request was\nmade by the Yugoslav Committee. Several speakers placed\nthe London Polish and the Cairo Yugoslav Governments in\nthe same category at the Kosciuszko meeting staged by the\nUnion of Polish Patriots and the All Slav Committee.\n(E) Although favorable foreign comment on the\nSoviet offer for peace terms was published there was,\nduring the period under review, little publicity concern-\ning Finland. Anxiety upon the part of the Soviets not\nto prejudice the prospects of peace negotiations was\napparent.\n(6) Toward Poland the attitude remained much the\nsame as stated in my previous report. The Kosciuszko\nRebellion's 150th anniversary scainst the Czarist Govern-\nmont furnished the occasion for stressing the theme that\nthe Union of Polish Patriots, together with Polish forces\nin the Soviet Union (the latter recently raised to the\nstatus of an army and now called \"the\" Polish Army)\nwore carrying on the Kosciuszko tradition, while elements\nsuch AS Sosnkowski, against whom Kosciuszko had fought,\nwere viewed as continuing the tradition of the reactionary\nlandlords.\nA report\nRegraded\n31\n-6-\nA report of an article in the LONDON OBSERVER which\nincluded statements to the effect that the majority of\nthe Ministers of the London Government realized the\nnecessity of meeting Soviet demands but lacked courage\nto buck the militarist elements, was published in line\nwith the press policy of hinting periodically at the\npossibility of some sort of agreement being reached\nbetween the Soviets and a reconstructed London Government.\nTo the arrest of Ukrainian soldiers serving the Polish\nArmy in England considerable publicity was given.\n(7) The call to partisan and underground move-\nments in all countries to rise against the Cerman in-\nvaders continued to be emphasized by the press.\nCombined with strong hints that the resistance groups\nwere suffering from lack of arms and wore handicapped\nby an order to await the signal of a general uprising,\ntributes were paid to French resistance, especially in\nupper Savoy. Prominent treatment was given the Czech\nGovernment's appeal to its people to take action and\nPene's letter to Stalin expressing joy at the entry\nof the Red Army into Czechoslovakian territory.\nWithout comment, General de Gaulle's speech on\nFrench unity and the steps taken to strengthen his\nposition\n32\n-7-\nposition were reported. As 9 model for the treatment of\ntraitors the sentence on Pucheu was applauded.\n(8) The conclusion of a new fisheries convention\nbetween the Soviet and Jap Governments covering EL five\nyear period combined with an agreement with the Japs to\nliquidate their concessions in northern 3akhalin was an\nimportant now development. The connection between this\nagreement and the \"sobriety\" which the Japs had acquired\nwith the successful Soviet military operations against\nGermany was editorially emphasized. In regard to the\nJapanese evacuation of northern Sakhalin it was pointed\nout that Matsucka had given an undertaking in April 1941,\nbut it was in the autumn of 1943 that the necessity of\nundertaking negotiations to carry out these promises was\nrecognized by the Japanese. That the agreements had\ntaken account of the special position of \"our Allies\" in\nthe Pacific was stated.\n(9) Mixed was the press comment on Great Britain\nand the United States. Receiving about as much space\nand prominence as the war in Italy and the Pacific com-\nbined, the Allied war effort was a major theme in dealing\nwith Britain and America and special prominence was given\nto the Allied air war against Germany. Prominence was\ngiven\nPoaradod\n33\n-b-\nriven to important declarations of Allied tatesmen and\nexprossions locking toward future cooperat on with the\n11105 In the war and postwar period conti med snd, in\ngeneral. news from Allied countries was treated sympa-\nUnusually full, though not complete,\ncoverage was riven tc .r. Hull's radio address of\nheril S. RED STAR contained & long article cautiously\nconvessing the possibilities for the 1944 American Presi-\nCential election, confinire direct comment only to stuto-\nments to the effect that Recsevelt's foreign policy had\nthe support of wide soctions of the American people and\nthat the chief problem confronting the United States at\npresent is foreign affairs.\nRegarding the activities of \"Fascist and reactionary\"\n(Teups within the Alliod countries, unxiety was expressed.\ncountry Hearst of being in agent of Mtler in America, a\n3030 0 Must was delivered by Zuslavski. In WAR VID THE\nCLASS an article expressed the view that powerful\n\"roups of capitalists In the United States and more es-\nrecially in England were anxious to revive international\ncartols in which a large rolo has been played by German\ninterests. Tending to keep alive suspicion of Britain\nwas the publication of a second statement by a German\nprisoner\n34\n-9-\nprisoner regarding the exchange of able bodied German\nmilitary personnel in British hands which permitted them\nto be sent for service on the eastern front against the\nRussians.\nIn connection with the Canadian-Soviet supply agree-\nment, prominent expressions of good will went to Canada,\nand to Canada's military and industrial contribution to\nthe Allied war effort warm tribute was paid.\n(11) The victories of the Red Army and exhortation\nto increase war production and in other ways help the\nfront were the chief internal themes. In contrast to\nthe emphasis on anonimity which prevailed during the\nearly stages of the war, orders of the day and the award-\ning of high decorations to Army officers continued to\nbuild up Soviet military leaders in the public eye.\nHARRIMAN\nDCR:MAS:EA\nRegraded Unclassified\n35\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAMEMBASSY, Moscow\nTO:\nSecretary of State, Washington\nDATED:\nApril 20, 1944\nNUMBER:\n1370\nSECRET\nHARRIMAN SENDS THE FOLLOWING FOR THE ATTENTION OF THE\nSECRETARY OF THE TREASURY.\nAs soon as I received your cable of April 17, 1944,\nNo. 938, I requested an immediate appointment with the Peoples\nCommissar for Finance and I sent the substance of your cable over\nin writing. Inasmuch as the Commissar was engaged all last night\nin conference I saw him this afternoon and strongly urged him that\nthe Soviet Government should join in authorizing the statement\nproposed. I was informed by him that he could not agree to the\ntext of the International Monetary Fund statement being approved\nby the Soviet expert. The Commissar stated that he had not had\nan opportunity to hear from his expert regarding the changes which\nyour cable proposed and that in any event there were several points\nin the previous text to which agreement had not been given by the\nSoviets. He stated, in reply to my queries, that no provision\nhad been made for the fixing of the parity of the ruble unilaterally\nby the Soviet Government and that other provisions concerning payments\nin gold and gold resources in mining countries were not satisfactory\nRegraded Unclassified\n36\n- 2 -\nto them. It was stated by him that he felt it would not be desirable\nfor the text to be released without the Soviet expert's approval.\nThe Commissar was asked by me whether the Soviet Government would\nagree to publication after these questions of which he spoke had\nbeen settled. He stated in reply that he would have to get the\napproval of his Government before he could answer that question.\nHe clearly indicated by indirection, however, that the Soviet\nGovernment was very anxious to have the situation develop in such a\nway that their expert could join in approving the text of the\nstatement. The Commissar expressed the hope that you would not find\nit necessary to publish the text without participation by the Soviet\nGovernment. It was explained by me that I believed you would have\nto publish the text as you were appearing tomorrow before Congressional\nCommittees.\nWhen I departed I was asked by Mr. Xverev to convey to\nMr. White and you his appreciation of the courtesies and hospitality\nwhich the Soviet experts in Washington had received.\nHarriman\nRegraded Unclassified\n37\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nMoscow\nDATED:\nApril 20, 10 p.m.\nNUMBER: 1380\nI we.s asked by Molotov to call this evening near\nmidnight and received the following statement from him:\nAmong our financial experts there exists a major\ndiscord with respect to the basic conditions of the\nestablishment of the international monetary fund. The\nobjection was made by the majority of our experts to\na series of points. Speaking with complete frankness,\nthe Soviet Government has not succeeded in studying\nyet fully the basic conditions of the proposal.\nIf it is necessary, however, to the Government\nof the United States of American to have the concurrence\nof the Government of the Soviet Republic to secure due\neffect in the rest of the world, theSoviet Government is\nwilling to instruct its experts to associate themselves\nwith Mr. Morgenthau's project.\nIt was explained by Mr. Molotov that this was not\nto be considered as a reservation made by the experts\nRegraded Unclassified\n38\n-2-\nbut for your information, it expressed the actual attitude\nof the Soviet Government. If you wished it under these\ncircumstances would issue instructions to his experts\nto associate themselves with the monetary fund statement.\nMolotov was informed by me that there was not time\nfor me to get a reply from you, and I suggested to him\nthat he give instructions to his experts to associate\nthemselves with the monetary fund statement, provided\nhowever, you approved under the circumstances. To this\nMolotov agreed, and he will instruct his experts on\nreceipt of this cable to get in touch with Mr. White.\nMy suggestion is that you telephone me as early\nas possible in order to give me advice of your decision\nso that I may tell Molotov, who said, if you approve, he\nis prepared to publish the monetary fund statement in\nMoscow.\nFMA:EGC:ja\nRegraded Unclassified\nApril 20, 1944\n39\n2:13 p.m.\nHMJr:\nHello.\nOperator:\nGeneral Greenbaum. There you are.\nHMJr:\nHello.\nGeneral\nGreenbaum:\nYes, sir.\nHMJr:\nHello, Eddie.\nG:\nYes, Henry.\nHMJr:\nEddie, I got the answer to the request that\nwe made about the possibility of using German\nprisoners.\nG:\nYes.\nHMJr:\nWhich I appreciate is the correct answer.\nG:\nYes.\nHMJr:\nNow, I want to ask you, a fellow with an\noriginal mind, how can we get the results?\nG:\nI'm not quite clear exactly what you want to\naccomplish there.\nHMJr:\nWell, let me tell you. I wanted to try it out\nin one factory. The idea I got is either very\ngood or it's no good. See?\nG:\nYes.\nHMJr:\nNow, what I've got in mind is this, I don't\nthink there's one person in ten in this country\nwho really knows what the Nazi system has done\nto their own people.\nG:\nYes.\nHMJr:\nSee? And the thing that's bothering me as time\ncomes -- approaches this invasion business and\nif it's going to be tough, which certainly we\nhave every reason to believe, that this thing\ncalled Nazism -- the thing which we've got to\nexterminate -- that the people in this country\naren't prepared, because they really don't know\nwhat it 1s. I mean there's a lot of loose talk --\nhello?\nRegraded Unclassified\n- 2 -\nG:\nYes.\nHMJr:\nNow, the thought that I had -- that if -- I know\nfrom conversations I've had with you and others,\nthere are amongst these prisoners real Anti-Nazis.\nG:\nYes.\nHMJr:\nIf one of these men, or two or three, could talk\nto a group of laboring people -- I mean on the idea\nof incentive -- and explain to them what Nazism has\ndone to their home -- the question of the Church --\nChristianity, and how it has deprived them of all\ntheir privileges. You see? And it's something\nthat they hate. It's something that we've got to\nexterminate, no matter what the cost. Hello?\nG:\nYes.\nHMJr:\nNow, every time I've talked to any group, and I've\nreally gotten tough about the enemy -- I'm talking\nnow about labor audiences -- 1s the only time I\never get a hand. And I wouldn't say, \"Now, when\nI get through, won't you please buy a bond?\" But\nI've got the hope that the audience will be angry\nenough that they'd want to produce more guns and\nmore tanks and buy more bonds. You see?\nG:\nYes.\nHMJr:\nNow, I may be entirely wrong. I don't think anybody\ncan tell me until it's tried. I do know that the\nGermans have an -- I mean the Russians have an\norganization -- they have the General who defended\nStalingrad, or attacked Stalingrad -- I mean, they've\ngot the whole group there, of Germans, in Russia\nwhom they use for propaganda purposes. Now, the\nRussians are doing it. They go on the air and they\ncertainly got them some way or other.\nG:\nThat's an entirely different thing because those\nfellows have sort of pulled themselves away.\nHMJr:\nBut they must have been prisoners.\nG:\nYes, they were. But that's a deal that they've\nbeen working out among themselves. You see, but\nwe'd be handicapped on this business of using the\nprisoners of war, in the first place, on the\nGeneva Convention, we'd be tied -- our hands would\nbe tied as far as our ability to do it even though\nthey'd be willing to, because the Germans would\nRegraded Unclassified\n40\n- 3 -\nG:\nCont'd.\ntwist that around and there's the possibility of\nretaliatory measures on our prisoners. That's\nnumber one. Number two. You'd have a great\nreluctance on the part of the German prisoners\nto do it because none of them want to put them-\nselves in that category on account of a fear of\nreprisals to members of their families there\nand they, themselves\nHMJr:\nWhy don't you take that candy out of your mouth?\nG:\nThat's right.\nHMJr:\n(Laughs) Or give me a piece 80 I can chew.\nG:\nThat's just a gulp from a pipe I've been\nsmoking.\nHMJr:\n(Laughs)\nG:\nI don't think it's do-able at all via prisoners-\nof-war, but what I would like to do is think it\nover and talk with Colonel Gough and some of the\nothers and see if we can think of some way in\nwhich you can do it. Your objective is a fine\none and I think it's something that would be very\neffective, but I just can't see doing it via the\nprisoners-of-war.\nHMJr:\nWell, look, Eddie, old man, I'm not trying to\nkid you -- if you agree with me the objective\n18 worthwhile trying -- I don't want to try it\nCoast-to-Coast. I'd like to try it in some\nisolated place, to see the effect on the audience.\nYou see?\nG:\nYes, I see.\nHMJr:\nTest it out and then if the audience reacted well,\nand you got this general response, \"By God, we're\ngoing to get mad and we're going to work Sunday\nand we're going to work Saturday night. We're not\ngoing to get drunk. We're really going to do\nsomething and we're going to invest our money to\nthe last.... -- I mean, I want to get these people\nreally 80 that they understand this thing, and they\ndon't.\nG:\nWell, I've got it. Let me mull over this thing\novernight and I'll give you a ring in the morning.\nRegraded Unclassified\n- 4 -\nHMJr:\nWill you?\nG:\nYes, I will.\nHMJr:\nAnd some way that we can do it legally.\nG:\nI understand.\nHMJr:\nThe Russians have a way.\nG:\nYeah. But there are a little different factors\nthere. I'll talk to Ralph Gough and maybe\nGeneral Bryan in charge of prisoners-of-war on\nthe thing.\nHMJr:\nThank you.\nG:\nOkay. Thanks.\nRegraded Unclassified\n41\nSECRETARY'S SCHEDULE\nAPPEARANCE before CONGRESSIONAL COMMITTEES\nThursday, April 20\n2:00 p.m. - Speaker Rayburn's office\nAttending: Chairmen of House committees\nMr. McCormack, Majority Leader (2) not ettend wey\nSpeaker Rayburn\n6\nSecretary Morgenthau\nMr. Acheson (to go with Treasury group)\nMr. Smith\nMr. White\nMr. O'Connell\n(Mr. Acheson to be notified by\nMr. O'Connell)\nFriday, April 21\n10:00 a.m. - Senator Barkley's office\nAttending: Mr. Barkley\nMr. Connally\nMr. Wagner\n(Same State and Treasury group which\nattended Thursday's meeting)\n10:30 a.m. - Senate Banking Committee Room\nAttending: Three Senate Committees\nSecretary Morgenthau\nMr. White\nMr. Smith\nMr. O'Connell\nMr. Bernstein\nMr. Luxford\nMr. Acheson\nMr. Collado\nMr. Pasvolski\n2:00 p.m. - House Banking Committee Room\nAttending: The 10:30 a.m. group\n4:30 p.m. - Secretary's office - Press conference,\nMr. Acheson invited\nRegraded Unclassified\n42 \nApril 20, 1944\n2:40 p.m.\nAPPEARANCE BEFORE CONGRESSIONAL COMMITTEES\nPresent: Mr. White\nMr. O'Connell\nMrs. Klotz\nMr. Smith\nH.M.JR: I have seven minutes and I wondered if you\nthought this would be good bail, for me to cail up\nChairman Eccles and say, \"Look, Marriner, you weren't\nhere when I opened the meeting and asked, if & man\ndidn't agree, that he would say so publicly.\"\nThen I would say, \"Now look, Marriner, you would be\ninterested to know that I have just gotten word from the\nPresident that if there is 8. meeting, I am going to be\nChairman of the delegation, and I hope that you will\ngo along with us sufficiently, because I am looking\nforward to having you on that delegation.\"\nMR. O'CONNELL: I don't know how far--\nMR. WHITE: I would say the latter part. I think\nyou are asking him not to say anything against it. I\ndoubt whether he would agree, if you put it that way.\nIf you would say not to say anything against it\nuntil he hadbad a chance to talk it over with you--\nH.M.JR: What has Eccles done about a public\nstatement? What has he agreed to?\nMR. SMITH: Luxford was sending that, were you?\nMR. WHITE: We haven't asked him yet. We thought\nwe would wait until the day before.\nRegraded Unclassified\n43\n- 2 -\nH.M.JR: Eccles is smart. When I say, \"I hope you\nwill go along because I am going to be Chairman of the\ndelegation\"--\nMR. WHITE: That statement, I think, would be a\npretty good one to make.\nH.M.JR: That is pretty much of a bribe.\nMR. WHITE: I think I would put it, \"...because I\nwant you on there and you appropriately belong on there.\"\nThen say, coupled with the request not to say any-\nthing publicly - - I can see your point--\nH.M.JR: Maybe you don't have to say the other.\nMRS. KLOTZ: It all depends on the way you put it.\nI think you can put it all right.\nH.M.JR: I can't do it in the next five minutes.\nMR. WHITE: He is liable to talk long.\nH.M.JR: No, I have been cutting corners all day\nlong.\nLook, old man, on the way down, talk to me about this\nthing.\nOne of the first things I learned in direct mail,\nnever thank a man in advance for something if you are\ngoing to ask him & favor.\nMR. SMITH: I have never even seen it. I have never\nread it.\nH.M.JR: I can't get this through War Bonds. Before\nI do anything, you have got to pass on it. They send\ntwenty-seven thousand telegrams, which I am not going\nto do. They can go by letter. Twenty-seven thousand\ntelegrams is bad public relations.\nRegraded Unclassified\n44\n- 3 -\nMR. SMITH: That is & lot of them.\nH.M.JR: Yes, he said SO. It is bad public relations,\nand the whole thing is bad.\nI am sorry if War Bonds annoy you (Smith).\nMR. SMITH: You do want Acheson at your press\nconference today, don't you?\nH.M.JR: Yes, I think 80.\nMR. SMITH: We asked him to come. He is going to\ncheck with Mr. Hull.\nH.M.JR: Is he coming here?\nMR. O'CONNELL: At a quarter of.\nMR.SMITH: Do you want to take your speech along\nwith you?\nH.M.JR: Yes.\nMR. SMITH: I hope it is done.\nH.M.JR: Where is Mr. Acheson?\nMR. WHITE: de will be here at a quarter of.\nRegraded Unclassified\n45\nApril 20, 1944\n4:15 p.m.\nRe: PRESS CONFERENCE\nPresent: Mr. White\nMr. Smith\nMrs. Klotz\nMr. Luxford\nMr. Bernstein\nMr. Shaeffer\nH.M.JR: Charlie, I want you to get this over\nto State before my press conference. Mr. Hull, Mr.\nAcheson tells us, doesn't want Dean Acheson to come to\nthe press conference because anything he does, he wants\nto do himself!\nDean said Mr. Hull was very much annoyed because\nsomebody in the State Department made a speech the other\nday. He doesn't like any publicity in connection with\nit unless he, Mr. Hull, has it himself.\nMR. WHITE: Would he have wanted to come up with\nyou to meet these people?\nH.M.JR: I don't know.\nMR. WHITE: I mean the leaders?\nH.M.JR: Maybe. You know this is very unusual.\nMR. WHITE: Does Hull want to appear before these\nCommittees?\nH.M.JR: I don't know. Dean said I turned this\nthing around. Hull doesn't like Berle. He said I\nturned this around. Hull wants to get the publicity and\nI don't want to get my name in the paper to get the old\nman upset in any way.\nRegraded Unclassified\n46\n- 2 -\nHe says he is very peculiar. That is why I took\nDean for 8. walk.\nMR. WHITE: I wonder if you would want to call Hull\nup.\nH.M.JR: No, I think it is all right.\nMR. WHITE: We have a Russian delegation. They\nwill have to go back.\nH.M.JR: You can all go out, but let me read this,\nplease.\nMR. WHITE: I will be back in a few minutes.\nH.M.JR: It will be too late. You have me saying\nsomething, and I have to settle these things.\nMR. WHITE: All right.\n(Mr. White leaves the conference temporarily)\nH.M.JR: I want those three men in.\n(Mr. Luxford and Mr. Bernstein enter the conference)\nH.M.JR: Why do you put more stuff in now at the last\nminute?\nMR. SMITH: The only reason is because Smith is on\nour trail.\nH.M.JR: You can't answer it.\nMR. SMITH: But he has a good press.\nH.M.JR: But you can say things that will get me a\nbad press.\n(Mr. White re-entered the conference)\nRegraded Unclassified\n47\n- 3 -\nMR. WHITE: I adjourned the meeting.\nMR. SMITH: This is the way it was. (Deletes several\nsentences from the Secretary's draft of statement)\nH.M.JR: Now the rest is the same?\nMR. SMITH: Just the same except for some minor\nthings, and the change you made on the last page about\nMr. Roosevelt.\nNow, here was another change you suggested making:\n\"International cooperation on monetary and financial\nmatters is the keystone of successful cooperation on all\ninternational and economic problems. Unless we can agree\nto expand and develop the world economy, few other agree-\nments which we might make will or can be effective.\"\nH.M.JR: Can I see that, please?\nMR. SMITH: That was where you got your \"keystone\"\nin, remember?\nH.M.JR: I think that is all right. Anybody not\nthink that is all right - since Hull is so sensitive on\nthe thing?\nMR. LUXFORD: I think it is very good.\nMR. WHITE: You might stick in \"...the world economy.\"\nMR. SMITH: It is in there.\nH.M.JR: It says, \"Unless we can agree to expand and\ndevelop the world economy, few other agreements which we\nmight make will or can be effective.\nMR. WHITE: \"Unless we agree to expand world trade\nand economy\" - everybody is in favor of world trade.\nH.M.JR: \"To develop world trade\"?\nMR.\nWHITE: \"...expand world trade.\"\nRegraded Unclassified\n48\n- 4 -\nMR. SMITH: He wants to put \"world trade\" as well\nas \"economy.\" He wants to say \"world economy and world\ntrade.\"\nMR. BERNSTEIN: \"Expand world trade and develop\nworld economy.\"\nMR. WHITE: That would be better.\nH.MJR: Everything else is practically the same?\nMR. SMITH: Yes. And then the last page is the\nthing you dictated word for word.\nH.M.JR: Now, one thing I want to do when this is\nover. Those telegrams that we have, all these invitations,\nthose all ought to be answered over my signature tomorrow.\nDo you have anybody in your office can do it?\nMR. SMITH: I will find somebody.\nH.M.JR: Tell Charlie to draft some telegrams.\nMR. SMITH: We have about six more now.\nH.M.JR: Whatever they are - because Rayburn said\nto me, \"Be sure to let Patman know yourself. So as long\nas we are going to do it, the more people we are doing\na personal favor to, the better. I would like those to\ngo out tomorrow.\nMR. LUXFORD: How did it go on the Hill?\nH.M.JR: Very well.\nRegraded Unclassified\napril/9,/944\nDraft # 1\nThis is a geat stip forward. &ts 49\nmetary matters\non 1 nosel-war\nGentlemen:\nI am happy to tell you today that the technical experts\nof thirty United Nations including our own and those of Great\nBritain have agreed upon a set of basic principles to govern\nan International Monetary Stabilization Funds # The experts of\nRepresentative of\nsome of these nations have prepared a joint statement of the\n30\nparticular\nprinciples. I want to call your attention to some of the fact\ncontained in this joint statement, but before I do that, I\nshould like to take a few moments of your time to review with\nyou some of the things that have happened since I last appear\nbefore these Committees on October 5 of last year. At that tin\nI told you I would like to keep you informed of progress, and\nappreciate\naccordingly I grateful for this opportunity to bring you\nup to date.\nrequesentative\nShortly after our meeting last October, many of the\nthat existed ther\ndifferences of opinion between the exports of this country and\nthose of the United Kingdom were resolved in & cories of\nbetween representatives of the two nations. Lord\nJohn Maynard Keynes headed a Butick n delegation to this country, and\nspent a month conferring with representatives of the the Treasury\nand other governmental departments. Since they returned,\ncorrespondence with them has cleared up the remaining\npoints of difference have hear cleaned ap Through\nconseponders\nRegraded Unclassified\n50\n- 2 -\nIn January of this year & delegation came to Washington\nfrom the U.S.S.R. and conferences with this group have been\nand\nalmost continuous up to the present time, Practically no\nimportant points of difference remain to be settled between\nthe nepresentatives of our two countries\nWe have been in agreement with the Chinese since before\nmy lact appearance here,\nthe October meeting, and the meetings we have had with them\nsince that time have been called chiefly to keep them up to\ndate. This is also the case with numerous other countries,\nmost of whom were in agreement as early as May and June of last\nyear.\nSince I last talked to you, we have taken steps in another\ndirection. We have discussed the principles of International\nStabilization and World Bank mogiams plans with bankers, labor\nrepresentatives and other interested groups in Washington,\nChicago, Boston, Philadelphia, New York, Richmond and other\ncame\nmajor cities. Out of these meetings - people received.,\ngreat many helpful suggestions and I believe it is safe to\nsay that the vast majority of those who are inclined to look\nwe found\nfavorably upon the principles of controlling currencies and\nvalues on an international basis at the Government level, are\nin fundamental agreement with our plans and principles. marry\nopposition that we have encountered has been largely the opposition\nto the basic principle of creating In International Stabilization\nRegraded Unclassified\n51\n- 3 -\nFund,' and although there seems to be some difference of\nopinion on this subject among those in control of the central\ndonbt\nbanking systems of the various nations, there is no deviation\namong the monetary experts of any of the nations, from the\nconvistion that such an international fund is essential if the\nworld economy is not to be threatened after the cessation of\nand umemhreeaber\nhositlities, by uncontrolled currencies. To ***** state it\nbriefly, 7he the consensus of these experts is that private\ninvestment on a world wide basis is vital to post-war reeovery\nand reconstruction, and that the stabilization of\nto this mustment\ncurrencies among the United Nations is a necessary prerequisites\nWe cannot expect American business men, nor business men of any\nnation to take major financial risks without some assurance\nthat his their investments will not be spepardized damaged by fluctuating money\nvalues.\nHaving studied the world picture after the last war, these\nwe and all\nmonotary exports are agreed that steps must be taken to prevent,\ninsofar as possible, unavoidable fluctuations of currency; and\nto prohibit deliberate manipulation of currencies in an effort to repair\nthe fiscal damage done by the war.\nInsofar as the proposed world bank is concerned, considerable\nprogress has been made since our October 5 meeting. American\ntechnical exports men and interested agencies such as the export-\nimport bank, and labor representatives, and other interested\nRegraded Unclassified\n52\n- 4 -\ngroups have held conferences in Washington. Representatives\nof the United Kingdom, of Russia, of China, Cuba, Yugoslavia,\nand Poland have met to exp lore the problems and projected the solutions\nas suggeståd in the world bank plan. I can say that there is\nconsiderable support for the general principles embodied in\nthe world bank, although no joint statement has yet been agreed\nupon by these nations.\non the would Bank\nBecause these discussions were initiated somewhat later\nthey have not yet been completely finkshed. I can tell you,\nhowever, that considerable progress has been made and that we\nbelieve we have the basis for agreement among the technical\nexperts of the United Nations. There is every indication now\nthat the technical experts will soon issue a statement of\nprinciples setting forth their recommendations on the\nestablishment of a Bank for Reconstruction and Development.\nAll of the countries with whom our technical experts have\ndiscussed this problem regard the revival of international\ninvestment after the war as essential to the expansion of\ninternational trade and the maintenance of a high level of\nbusiness activity. This will be possible only if steps are\ntaken to encourage and aid private investors in providing an\nadequate volume of long-term investment capital for productive\npurposes,\nRegraded Unclassified\n53\n- 5 -\nThe discussions we have had contemplate the establishment\nof 8. Bank for Reconstruction and Development which will facilitate\nthe provision of long-term investment capital through private\nfinancial agencies by guaranteeing and participating in loans\nmade by private investors. The Bank would also supplement\ninvestment of private financial agencies if this becomes\nnecessary by lending for productive purposes from its own\nresources when private capital is otherwise not available on\nreasonable terms.\nN\nA full statement of the recommendations of the experts\non the establishment of 8. Bank for Reconstruction and Development\nand of the principles on which such a Bank should be based is\nstill in preparation. It is my hope that this statement of\nprinciples will soon be completed and that it will be issued\nlater. Before it is published, I shall inform your committees\nof the recommendations of the experts of the United Nations.\nNow I should like to explain some of the basic principles\nupon which we are all agreed in connection with the International\nStabilization Fund.\nHere are the purposes and policies as set forth in the\njoint statement:\nspace\nRegraded Unclassified\n54\n- 6 -\n(1) To promote international monetary cooperation\nthrough a permanent institution which provides the\nmachinery for consultation on international monetary\nproblems.\n(2) To facilitate the expansion and balanced growth of\ninternational trade and to contribute in this way\nto the maintenance of a high level of employment and\nreal income, which must be a primary objective of\neconomic policy.\n(3) To give confidence to member countries by making the\nFund's resources available to them under adequate\nsafeguards, thus giving members time to correct\nmaladjustments in their balance of payments without\nresorting to measures destructive of national or\ninternational prosperity.\n(4) To promote SXXXX exchange stability, to maintain\norderly exchange arrangements among member countries,\nand to avoid competitive exchange depreciation.\n(5) To assist in the establishment of multilateral pay-\nments facilities on current transactions among member\ncountries and in the elimination of foreign exchange\nrestrictions which hamper the growth of world trade.\n(6) To shorten the periods and lessen the degree of dis-\nequilibrium in the international balance of payments\nof 1 member countries.\nRegraded Unclassified\n55\n- 7 -\nThe joint statement further explains that\nAll of the\nUnited and Associated Nations would subscribe approximately\n$8 billion to the Fund in the form of gold and local currency.\nThe resources of the Fund would be available under adequate\nsafeguards to help member countries to maintain exchange\nstability while they correct maladjustments in their balance\nof payments. Member countries would be able to buy foreign\nexchange from the Fund with their own currencies, to the extent\nof their quotas, to meet international payments consistent with\nthe purposes of the Fund. If 8. member country makes use of\nthe Fund in a manner contrary to its purposes and policies,\nthe Fund would give appropriate notice that it would sell\nadditional exchange to the member country only in limited\namounts and under specific conditions.\nThe par value of currencies of member countries would be\nexpressed in gold and could be changed only at the request of\nmember countries after consultation with the Fund and with its\napproval. The Fund would approve a requested change in parity\nonly if it were essential to correct fundamental disequilibrium.\nPrompt consideration would be given to requests for necessary\nadjustment of exchange rates.\nVoting power in the Fund would be closely related to\nquotas. A member country could withdraw from the Fund\nimmediately by giving notice in writing. Thereafter, the\nRegraded Unclassified\n56\n- 8 -\nreciprocal obligations of the Fund and the country would be\nliquidated within a reasonable time.\nMember countries would not allow their exchange rates to\nfluctuate outside a prescribed range based on the agreed gold\nparity. They would not impose restrictions on payments for\ncurrent international transactions or engage in discrimimatory\ncurrency practices without approval of the Fund.\nDuring the period of transition following the war, member\ncountries would be permitted to retain their exchange controls\nwith the expectation that these would be gradually relaxed.\nThree years after the establishment of the Fund any member\nstill retaining restrictions inconsistent with these principles\nwould consult with the Fund as to their retention.\nI am frank to say that in my opinion the agreement of the\ntechnical experts to these principles is the most important\ndevelopment on international monetary policy in this generation.\nThe way to prevent a breakdown of currencies and the imposition\nand retention of restrictive and discriminatory stay exchange\nmeasures after the war is by providing now for international\ncooperation to assure a stable and orderly pattern of exchange\nrates. The purposes set forth in this Joint Statement have long\nbeen the international menetary policies of the United States.\nFor years it has been our objective to have these policies adopted\nby other countries. We know of no better way of assuring general\nRegraded Unclassified\n57\n- 9 -\nadherence to these international monetary policies than through\ninternational cooperation in an International Monetary Fund.\nif\nRegraded Unclassified\nmystlp on\n58\nwe make will n can\nyour required me of\nThe discussions we have had contemplate the establishment of a\nBank for Reconstruction and Development which will facilitate the\nprovision of long-term investment capital through private financial\nagencies by guaranteeing and participating in loans made by private\ninvestors. The Bank would also supplement investment of private\nfinancial agencies if this becomes necessary by lending for productive\npurposes from its own resources when private capital is otherwise not\navailable on reasonable terms.\nA full statement of the recommendations of the experts on the\nestablishment of a Bank for Reconstruction and Development and of\nthe principles on which such a Bank should be based is still in pre-\nparation. It is my hope that this statement of principles will soon\nbe completed and that it will be issued later. Before it is published,\nI shall inform your committees of the recommendations of the experts\nof the United Nations.\nWe believe that it is of the greatest importance that all of the\nUnited Nations are in agreement on the best means to deal with these\ninternational financial problems after the war. This is concrete\nevidence that the United Nations can and will work together in\nestablishing a peaceful and prosperous world just as they are now\nfighting together to destroy tyranny and oppression.\nbelieve at cm\nThe tentative proposals that have been under discussion by the\ntechnical experts are part of a program for cooperation on international\neconomic problems among the United Nations. The objectives of this\nprogram are the expansion and development of international trade, the\nimperedimion\nrestoration of international investment for productive purposes, the\nMentin en the burt in the spectmy point intent 1\nRegraded Unclassified\n59\n- 6 -\nmaintenance of stable and orderly exchanges, and through these means\nto contribute to a high level of employment and production. The\nestablishment of an International Monetary Fund and a Bank for\nReconstruction and Development are important steps in the attainment\nof the objectives of this broad program.\nI wan to emphasize again that the discussions up to now have all\nbeen of a technical nature and exploratory in character. Whatever has\nbeen done represents the views of the technical experts of this country\nand of other countries that have been 8 tudying these questions. No\ncountry, including the United States, will be committed until there has\nbeen a formal conference which will draft definite proposals to be sub-\nmitted to Congress for its action. It is my hope that after studying the\nrecommendations of the technical experts, the governments of the United\nNations will come to the conclusion that there is sufficient basis of\nagreement at a technical level to warrant the convening of a formal\nconference. I am happy to say that the President has authorized me to\nstate that if a conference is held, the American delegation would pro-\nbably include representatives of both houses of Congress.\nRegraded Unclassified\nDraft #2\n4-19-44\n60\nGentlemen:\nI am happy to tell you today that the technical experts\nof thirty United Nations including our own and those of Great\nBritain have agreed upon a set of basic principles to govern\nan International Monetary Stabilization Fund. This is a great\nstep forward. Its importance on post-war monetary matters\ncannot be overemphasized; and this agreement is a valuable asset,\nalso to those of us who believe that the nations of the world\ncan and will agree on matters that control our international\neconomic and social well-being. This is the first major step\nto be contemplated in post-war international cooperation; its\nsuccess to date is, I believe, prophetic.\nRepresentatives of some of these thirty nations have\nprepared a joint statement of the principles which have been\nagreed upon. I want to call particular attention to some of\nthe facts contained in this joint statement, but before I do\nthat, I should like to take a few moments of your time to re-\nview with you some of the things that have happened since I\nlast appeared before these Committees on October 5 of last\nyear. At that time, I told you I would like to keep you\ninformed of progress, and accordingly I appreciate this\nopportunity to bring you up to date.\nRegraded Unclassified\n61\n- 2 -\nShortly after our meeting last October, a series of\nconferences were held in which many of the differences of\nopinion that existed then between representatives of this\ncountry and those of the United Kingdom were resolved.\nLord John Maynard Keynes headed & British delegation to this\ncountry, and spent 8. month conferring with representatives\nof the Treasury and other governmental departments. Since\ntheir return to their own country the remaining points of\ndifference have been cleared up through correspondence.\nIn January of this year a delegation came to Washington\nfrom the U.S.S.R. and conferences with this group have been\nalmost continuous up to the present time, and practically no\nimportant points of difference remain to be settled.\nWe have been in agreement with the Chinese since before\nmy last appearance here, and the meetings we have had with\nthem since that time have been called chiefly to keep them up\nto date. This is also the case with numerous other countries,\nmost of whom were in agreement as early as May and June of\nlast year.\nSince I last talked to you, we have taken steps in another\ndirection. We have discussed the principles of International\nStabilization and World Bank programs with bankers, labor\nRegraded Unclassified\n62\n- 3 -\nrepresentatives and other interested groups in Washington,\nChicago, Boston, Philadelphia, New York, Richmond and other\nmajor cities. Out of these meetings came many helpful\nthat\nsuggestions. I believe it is safe to say that we found the\nvast majority of those who are inclined to look favorably\nupon the principle of controlling currencies and values on\nan international basis at the Government level, are in\nfundamental agreement with our plans and principles. Any\nopposition that we have encountered has been largely opposition\nto the basic principle of creating an International Stabilization\nFund, and although there seems to be some difference of opinion\non this subject among those in control of the central banking\nsystems of the various nations, there is no doubt among the\nmonetary experts of any of the nations, that such an inter-\nnational fund is essential if the world economy is not to be\nthreatened after the cessation of hostilities, by uncontrolled\nand uncontrollable currencies. The consensus of these experts\nis that private investment on a world wide basis is vital to\npost-war recovery and reconstruction, and that the stabili-\nzation of currencies among the United Nations is a necessary\nprerequisite to this investment. We cannot expect American\nbusiness men, nor business men of any nation, to take major\nRegraded Unclassified\n63\n- 4 -\nfinancial risks without some assurance that their investments\nwill not be jeopardized by fluctuating money values.\nHaving studied the world picture after the last war, we\nare all agreed that steps must be taken to prevent, insofar\nas possible, unavoidable fluctuations of currency; and to\nprohibit deliberate manipulation of currencies in an effort\nto repair the fiscal damage done by the war.\nInsofar as the proposed world bank is concerned, considerable\nprogress has been made since our October 5 meeting. American\ntechnical men and interested agencies such as the export-import\nbank, and labor representatives, and other interested groups\nhave held conferences in Washington. Representatives of the\nUnited Kingdom, of Russia, of China, Cuba, Yugoslavia, and\nPoland have met to explore the problems and projected solutions\nas suggested in the World Bank Plan. I can say that there is\nconsiderable support for the general principles embodied in\nthe World Bank, although no joint statement has yet been agreed\nupon by these nations.\nBecause discussions on the World Bank were initiated some-\nwhat later they have not yet been completely finished. I can\ntell you, however, that considerable progress has been made and\nthat we believe we have the basis for agreement among the\nRegraded Unclassified\n64\n- 5 -\ntechnical experts of the United Nations. There is every\nindication now that the technical experts will soon issue a\nstatement of principles setting forth their recommendations\non the establishment of a Bank for Reconstruction and\nDevelopment.\nAll of the countries with whom our technical experts have\ndiscussed this problem regard the revival of international\ninvestment after the war as essential to the expansion of\ninternational trade and the maintenance of a high level of\nbusiness activity. This will be possible only if steps are\ntaken to encourage and aid private investors in providing an\nadequate volume of long-term investment capital for productive\npurposes.\nThe discussions we have had contemplate the establishment\nof & Bank for Reconstruction and Development which will\nfacilitate the provision of long-term investment capital through\nprivate financial agencies by guaranteeing and participating in\nloans made by private investors. The Bank would also supplement\ninvestment of private financial agencies if this becomes\nnecessary by lending for productive purposes from its own\nresources when private capital is otherwise not available on\nreasonable terms.\nRegraded Unclassified\n65\n- 6 -\nA full statement of the recommendations of the experts on\nthe establishment of a Bank for Reconstruction and Development\nand of the principles on which such & Bank should be based is\nstill in preparation. It is my hope that this statement of\nprinciples will soon be completed and that it will be issued\nlater. Before it is published, I shall inform your committees\nof the recommendations of the experts of the United Nations.\nNow I should like to explain some of the basic principles\nupon which we are all agreed in connection with the International\nStabilization Fund.\nHere are the purposes and policies as set forth in the\njoint statement:\n(1) To promote international monetary cooperation through\na permanent institution which provides the machinery\nfor consultation on international monetary problems.\n(2) To facilitate the expansion and balanced growth of\ninternational trade and to contribute in this way to\nthe maintenance of a high level of employment and real\nincome, which must be a primary objective of economic\npolicy.\n(3) To give confidence to member countries by making the\nFund's resources available to them under adequate\nRegraded Unclassified\n66\n- 7 -\nsafeguards, thus giving members time to correct\nmaladjustments in their balance of payments without\nresorting to measures destructive of national or\ninternational prosperity.\n(4) To promote exchange stability, to maintain orderly\nexchange arrangements among member countries, and\nto avoid competitive exchange depreciation.\n(5) To assist in the establishment of multilateral pay-\nments facilities on current transactions among member\ncountries and in the elimination of foreign exchange\nrestrictions which hamper the growth of world trade.\n(6) To shorten the periods and lessen the degree of dis-\nequilibrium in the international balance of payments\nof member countries.\nThe joint statement explains that all of the United and\nAssociated Nations would subscribe approximately $8 billion\nto the Fund in the form of gold and local currency. The\nresources of the Fund would be available under adequate safe-\nguards to help member countries to maintain exchange stability\nwhile they correct maladjustments in their balance of payments.\nRegraded Unclassified\n67\n- 8 -\nMember countries would be able to buy foreign exchange from\nthe Fund with their own currencies, to the extent of their\nquotas, to meet international payments consistent with the\npurposes of the Fund. If a member country makes use of the\nFund in a manner contrary to its purposes and policies, the\nFund would give appropriate notice that it would sell additional\nexchange to the member country only in limited amounts and under\nspecific conditions.\nThe par value of currencies of member countries would be\nexpressed in gold and could be changed only at the request of\nmember countries after consultation with the Fund and with its\napproval. The Fund would approve 8. requested change in parity\nonly if it were essential to correct fundamental disequilibrium.\nPrompt consideration would be given to requests for necessary\nadjustment of exchange rates.\nVoting power in the Fund would be closely related to\nquotas. A member country could withdraw from the Fund\nimmediately by giving notice in writing. Thereafter, the\nreciprocal obligations of the Fund and the country would be\nliquidated within a reasonable time.\nMember countries would not allow their exchange rates to\nfluctuate outside a prescribed range based on the agreed gold\nparity. They would not impose restrictions on payments for\nRegraded Unclassified\n68\n- 9 -\ncurrent international transactions or engage in discriminatory\ncurrency practices without approval of the Fund.\nDuring the period of transition following the war, member\ncountries would be permitted to retain their exchange controls\nwith the expectation that these would be gradually relaxed.\nThree years after the establishment of the Fund any member\nstill retaining restrictions inconsistent with these principles\nwould consult with the Fund as to their retention.\nI am frank to say that in my opinion the agreement of the\ntechnical experts to these principles is the most important\ndevelopment on international monetary policy in this generation.\nThe way to prevent a breakdown of currencies and the imposition\nand retention of restrictive and discriminatory exchange\nmeasures after the war is by providing now for international\ncooperation to assure a stable and orderly pattern of exchange\nrates. The purposes set forth in this Joint Statement have\nlong been the international monetary policies of the United\nStates. For years it has been our objective to have these\npolicies adopted by other countries. We know of no better\nway of assuring general adherence to these international monetary\npolicies than through international cooperation in an\nInternational Monetary Fund.\nRegraded Unclassified\n69\n- 10 -\nWe believe that it is of the greatest importance that all\nof the United Nations are in agreement on the best means to\ndeal with these international financial problems after the war.\nThis is concrete evidence that the United Nations can and will\nwork together in establishing a peaceful and prosperous world\njust as they are now fighting together to destroy tyranny and\noppression. And I believe it can be said that international\ncooperation on this front is the starting point of international\ncooperation on all fronts. Unless we agree to respect and\nprotect the world economy, few other agreements which we might\nmake will or can be effective.\nThe tentative proposals that have been under discussion\nby the technical experts are part of & program for cooperation\non international economic problems among the United Nations.\nThe objectives of this program are the expansion and development\nof international trade, the restoration of international invest-\nment for productive purposes, the maintenance of stable and\norderly exchanges, and through these means to contribute to\na high level of employment and production. The establishment\nof an International Monetary Fund and a Bank for Reconstruction\nand Development are important steps in the attainment of the\nobjectives of this broad program.\nRegraded Unclassified\n70\n- 11 -\nI want to emphasize again that the discussions up to now\nhave all been of a technical nature and exploratory in\ncharacter. Whatever has been done represents the views of\nthe technical experts of this country and of other countries\nthat have been studying these questions. No country, including\nthe United States, will be committed until there has been 8.\nformal conference which will draft definite proposals to be\nsubmitted to Congress for its action. It is my hope that after\nstudying the recommendations of the technical experts, the\ngovernments of the United Nations will come to the conclusion\nthat there is sufficient basis of agreement at a technical\nlevel to warrant the convening of a formal conference. I\nam happy to say that the President has authorized me to state\nthat if a conference is held, the American delegation would\nprobably include representatives of both houses of Congress.\nRegraded Unclassified\nDraft #3\n71\n4-20-44\nGentlemen:\nI am happy to tell you today that technical experts of\nthe United Nations have agreed upon a set of basic principles\nfor an International Monetary Stabilisation Fund. This is a\ngreat step forward. Its significance can lardly to exaggerated.\nthe\nIt is of greatest importance to all of us who believe that the\nnations of the world can cooperate in dealing with international\neconomic problems. This is the first major move to be con-\nsconomic\ntemplated in post-war international cooperation; and its success\nto date is, I believe, prophetic.\nTechnicians representing some of these thirty nations have\nprepared a. joint statement of the principles which are agreed\nupon. This statement does not, of course, bind any government\nto participate in the Stabilization Fund, though it does mean\nthat the Fund will be recommended to each of the governments as\na practical means of meeting post-war monetary problems.\nI want to call particular attention to some of the facts\ncontained in this joint statement, but before I do that, I\nshould like to review with you some of the things that have\nhappened since I appeared before these Committees on October 5\nof last year. At that time, I told you I would like to keep\nyou informed of progress, and accordingly I appreciate this\nopportunity to bring you up to date.\nRegraded Unclassified\n72\n- 2 -\nSince I last talked to you, we have discussed the principles\nof the International Stabilization program with bankers, labor\nrepresentatives and other interested groups in Washington,\nChicago, Boston, Philadelphia, New York, Richmond and other\ncities. Out of these meetings came helpful suggestions, many\nof which were incorporated in our plans. I-might mention one\nin particular: the Foreign Exchange Committee of the New York\nmarket, including representatives of the leading New York\nbanks and one Canadian bank, came to Washington to disouss with\nne this tentative proposal. During the conference, they pointed\nbut the desirability of requiring the Fund to give appropriate\nnotice before terminating the right of a member country to\npurchase foreign exchange for local currency. As a result of\nthis discussion, a basic provision to this end has been in-\ncorporated into the Joint Statement.\nThe vast majority of those with whom we have talked are\ninclined to look favorably upon the principle of cooperation\nto maintain stable and orderly exchange rates. Informed opinion\nseems to point to private investment on & world wide basis as\nvital to post-war recovery and reconstruction; and the stabili-\nzation of currencies among the United Nations through the medium\nof an international fund, is generally believed to be &\nnecessary prerequisite to this investment. I believe we\nRegraded Unclassified\n73\n- 3 -\ncannot expect American business men, nor business men of any\nnation, to take major financial risks, immediately upon the\nheels of & catastrophic global war, without some assurance\nthat steps have been taken to prevent their investments from\nbeing jeopardized by unduly fluctuating money values, and reverterely respons\nHaving studied the world picture after the last war, we\nare all agreed that steps must be taken to prevent, insofar\nas possible, harmful fluctuations of currency; and to prohibit\ndeliberate manipulation of currencies in an effort to secure\nunfair competitive advantage in world trade.\nI want to point out that we have kept the interests of\nthe American e conomy very much in mind in planning the type of\ninternational cooperation set forth in the statement of prin-\nciples.\nAs one might expect, especially in our election year,\nthere is, occasionally, some uninformed comment to the effect\nthat the United States will suffer as a result of International\ncooperation in the monetary and economic fields. Some suggestion\nhas been heard that we cannot become an important force in world\nreconstruction without compromising our own sovereignty.\nI believe it is obvious to all reasonable and informed\npeople that in a world as small as ours has come to be, American\nRegraded Unclassified\n74\n- 3a -\nbusiness, and accordingly, the American economy, cannot move\nforward while the economies of other nations slip backward.\nThere would be slight advantage in our being the wealthiest\nnation in the Universe if all the other nations in the world\nhad little or no wealth, and if all the other nations' stan-\ndards of living were so far beneath our own that international\nbusiness and commerce would be impossible.\nAddress,\nThere is no reason or logic in the statement\nthat all the other nations in the world can prosper only at\nour expense; but there is both reason and logic in the assertion\nthat the stability and progress of our own economy can be\nsabotaged by seriously fluctuating situations in the nations with\nwhich we must live and trade.\nThus it becomes of vital importance to every nation in\nthe world, including our own, to seek cooperation of all other\nnations in maintaining steady and dependable monetary and\neconomic policies. That is what we have set out to do. That\nis all we have set out to do. We have not planned, nor per-\nmitted to be planned, an international Shave-the-Wealth scheme.\nWhen I was here on October 5, I spoke of a projected international\nbank for reconstruction and development.\nBecause discussions on the Bank were initiated some-\nwhat later they have not yet been completely finished. I can\nRegraded Unclassified\n75\n- 3b -\ntell you, however, that there is considerable support for the\ngeneral principles embodied in the World Bank, and that good\nprogress has been made. We believe that already we have the\nbasie for agreement among the technical experts of the United\nNations,\nAll of the international representatives with whom we\nhave discussed the problem of reviving international invest-\nment after the war regard the - Bank as essential to the\nexpansion of international trade and the maintenance of a high\nRegraded Unclassified\n76.\n- 4\nlevel of business activity. They believe it necessary to take\nsteps to encourage and aid private investors in providing an\nadequate volume of long-term investment capital for productive\npurposes.\nThe discussions we have had contemplate the establishment\nof a Bank for Reconstruction and Development which will\nfacilitate the provision of long-term investment capital through\nprivate financial agencies by guaranteeing and participating in\nloans made by private investors. The Bank would also supplement\ninvestment of private financial agencies if this becomes\nnecessary by lending for productive purposes from its own\nresources when private capital is otherwise not available on\nreasonable terms.\n& full statement of the recommendations of the experts on\nthe establishment of a Bank for Reconstruction and Development\nand of the principles on which such a Bank should be based is\nstill in preparation. It is my hope that this statement of\nprinciples will soon be completed and that it will be issued\nlater. Before it is published, I shall inform your committees\nof the recommendations of the experts of the United Nations.\nNow I should like to explain briefly some of the basic.\nprinciples upon which the technicians are agreed in connection\nRegraded Unclassified\n77\n- 5 -\nwith the International Monetary Fund.\nHere are the purposes and policies as set forth in the\njoint statement:\n(1) To promote international monetary cooperation through\na permanent institution which provides the machinery\nfor consultation on international monetary problems.\n(2) To facilitate the expansion and balanced growth of\ninternational trade and to contribute in this way to\nthe maintenance of & high level of employment and real\nincome, which must be & primary objective of economic\npolicy.\n(3) To give confidence to member countries by making the\nFund's resources available to them under adequate\nsafeguards, thus giving members time to correct\nmaladjustments in their balance of payments without\nresorting to measures destructive of national OF\ninternational prosperity.\n(4) To promote exhhange stability, to maintain orderly\nexchange arrangements among member countries, and\nto avoid competitive exchange depreciation.\n(5) To assist in the establishment of multilateral pay-\nments facilities on current transactions among member\nRegraded Unclassified\n78\n- 6 -\ncountries and in the elimination of foreign exchange\nrestrictions which hamper the growth of world trade.\n(6) To shorten the periods and lessen the degree of dis-\nsquilibrium in the international balance of payments\nof member countries.\nThe joint statement recommends that all of the United and\nAssociated Nations world subscribe approximately 38 billion\nto the Fund in the form of gold and local currency. The\nresources of the Fund would be available under adequate safe-\nguards to help member countries to maintain exchange stability\nwhich they correct maladjustments in their balance of payments.\nMember countries would be able to buy foreign exchange from\nthe Fund with their own currencies, to the extent of their\nquotas, to meet international payments consistent with the\npurposes of the Fund. If a/member country makes use of the\nFund in a manner contrary/ to its purposes and policies, the\nFund would give appropylate notice that 1t would sell additional\nexchange to the member country only in limited amounts and under\nprescribed conditions.\nThe par value of currencies of member countries would be\nexpressed in gold and could be changed only at the request of\nRegraded Unclassified\n79\n- 7 -\nmember countries after consultation with the Fund and with its\napproval. The Fund would approve a requested change in parity\nonly if it were essential to correct fundamental disequilibrium.\nPrompt consideration would be given to requests for necessary\nadjustment of exchange rates.\nVoting power in the Fund would be closely related to\nquotas. A member country could withdraw from the Fund\nimmediately by giving notice in writing. Thereafter, the\nreciprocal obligations of the Fund and the country would be\nliquidated within a reasonable time.\nMember countries would not allow their exchange rates to\nfluctuate outside B. pressulbed range based on the agreed gold\nparity They would not impose restrictions on payments for\ncurrent international transactions or engage in multiple\ncurrency practices without approval of the Fund.\nDuring the period of transition following the war, member\ncountries would be permitted to retain their exchange controls\nwith the expectation that these would be gradually relaxed.\nThree years after the establishment of the Fund any member\nstill retaining restrictions inconsistent with these principles\nwould tonsult with the Fund as to their retention.\nI am frank to say that in my opinion the agreement of the\ntechnical experts to these principles is the most important\nRegraded Unclassified\n80\n- 8 -\ndevelopment on international monetary policy in this generation.\nThe way to prevent a breakdown of currencies and the imposition\nand retention of restrictive and discriminatory exchange\nmeasures after the war is by providing now for international\ncooperation to assure & stable and orderly pattern of exchange\nrates. The purposes set forth in this Joint Statement have\nlong been the international monetary policies of the United\nStates. For years it has been our objective to have these\npolicies adopted by other countries. We know of no better way\nof assuring general adherence to these international monetary\npolicies than through international cooperation in an\nInternational Monetary Fund.\nWe believe that is is of the greatest importance that all\nof the United Nations are in agreement on the best means to\ndeal with these international financial problems after the war.\nThis is concrete evidence that the United Nations can and will\nwork together in establishing & peaceful and prosperous world\njust as they are now fighting together to destroy tyranny and\noppression. And ± believe it can be said that international\ncooperation on this front is the starting point of international\ncooperation on alledrents. 91 Unless we agree to expand and\ndevelop the world economy, few other agreements which we might\nRegraded Unclassified\n81\n- 9 .\nmake will or can be effective.\nThe tentative proposals that have been under discussion\nby the technical experts are part of a program for cooperation\non international economic problems among the United Nations.\nThe objectives of this program are the expansion anddevelopment\nof international trade, the restoration of international invest-\nment for productive purposes, the maintenance of stable and\norderly exchanges, and through these means to contribute to\n& high level of employment and production. The establishment\nof an International Monetary Fund and a Bank for Reconstruction\nand Development are important steps in the attainment of the\nobjectives of this broad program.\nI want to emphasize again that the discussions up to now\nhave all been of a technical nature and exploratory in\ncharacter. Whatever has been done represents the views of\nthe technical experts of this country and of other countries\nthat have been studying these questions. The United States\nnot in any way to committed until Congress has taken\naction.\nIt is my hope that after studying the recommendations of\nthe technical experts, the governments of the United Nations\nwill come to the conclusion that there is sufficient basis of\nRegraded Unclassified\n82\n- 10 -\nagreement at a technical level to warrant the convening of a\nformal conference.\nI am happy to say that the President has authorized me to\nstate that if a conference is held, the American delegation\nwould probably include representatives of both Houses of\nCongress.\nRegraded Unclassified\nDraft #4\nDruft stat. before Comp. Come 4-20-44\n83\nGentiemen:\nI am happy to teil you today that technical experts of\nthe United Nations have agreed upon a set of basic principles\nfor an International Monetary Stabilization Fund. This is 8.\ngreat step forward. It is of greatest importance to all of\nus who believe that the nations of the world can cooperate\nin dealing with international economic problems. This is the\nfirst major move to be contemplated in post war international\neconomic cooperation; and its success to date is, I believe,\nprophetic.\n)\nTechnicians representing some of these thirty nations have\nprepared a joint statement of the principles which are agreed\nupon. This statement does not, of course, bind any government\nto participate in the Stabilization Fund, though it does mean\nthat the Fund will be recommended to each of the governments as\na practical means of meeting post-war monetary problems.\nI want to call particular attention to some of the facts\ncontained in this joint statement, but before I do that, I\nshould like to review with you some of the things that have\nhappened since I appeared before these Committees on October 5\nof last year. At that time, I told you I would like to keep\nyou informed of progress, and accordingly I appreciate this\nopportunity to bring you up to date.\nRegraded Unclassified\n84\n- 2 -\nSince I last talked to you, we have discussed the principles\nof the International Stabilization program with bankers, labor\nrepresentatives and other interested groups in Washington,\nChicago, Boston, Philadelphia, New York, and other cities.\nOut of these meetings came helpful suggestions, many of which\nwere incorporated in our plans.\nThe vast majority of those with whom we have talked are\ninclined to look favorably upon the principle of cooperation\nto maintain stable and orderly exchange rates. Informed opinion\nseems to point to private investment on a world wide basis as\nvital to post-war recovery and reconstruction; and the stabili-\nzation of currencies among the United Nations through the medium\nof an international fund, is generally believed to be a\nnecessary prerequisite to this investment. I believe we\ncannot expect American business men, nor business men of any\nnation, to take major financial risks, immediately upon the\nheels of a catastrophic global war, without some assurance\nthat steps have been taken to prevent their investments from\nbeing jeopardized by unduly fluctuating money values and\nsevere exchange restrictions.\nHaving studied the world picture after the last war, we\nan effort made\nare all agreed that shops must be taken to prevent, insofar as\nRegraded Unclassified\n85\n- 3 -\npossible, harmful fluctuations of currency; and to prohibit\ndeliberate manipulation of currencies in an effort to secure\nunfair competitive advantage in world trade.\nI want to point out that we have kept the interests of\nthe American economy very much in mind in planning the type of\ninternational cooperation set forth in the statement of prin-\nciples.\nAs one might expect, especially in our election year,\nthere is, occasionally, some uninformed comment to the effect\nthat the United States will suffer as A result of International\ncooperation in the monetary and economic fields. Some suggestion\nhas been heard that we cannot become an important force in world\nreconstruction without compromising our own sovereignty.\nI believe it is obvious to all reasonable and informed\npeople that in a world as small as ours has come to be, American\nbusiness, and accordingly, the American economy, cannot move\nforward while the economies of other nations slip backward.\nThere is no reason or logic in the statement that all the\nother nations in the world can prosper only at our expense; but\nthere is both reason and logic in the assertion that the\nstability and progress of our own economy can be sabotaged\nRegraded Unclassified\n86\n- 3a -\nby seriously fluctuating situations in the nations with which\nwe must live and trade.\nThus it becomes of vital importance to every nation in\nthe world, including our can, to seek cooperation of all other\nnations in maintaining steady and dependable monetary and\neconomic policies That is what we have set out to do. That\nis all we have set out to do. We have not planned nor permitted\nto be planned, as some commentators would have the American\npublic believe, an international Share the Wealth scheme.\nWhen I was here on October 5, I spoke of a projected\nInternational bank for reconstruction and development.\nBecause discussions on the Bank were initiated somewhat\nlater they are not yet completely finished. I can tell you,\nhowever, that there is considerable support for the general\nprinciples embodied in the World Bank, and that good progress\nhas been made.\nThree\nThe international representati ves with whom we have\nPrat was\ndiscussed the problem of reviving international investment\nafter the was regard the bank as essential to the expansion\nof international trade and the maintenance of a high\nRegraded Unclassified\n87\n- 4 -\nlevel of business activity. They believe it necessary to take\nsteps to encourage and aid private investors in providing an\nadequate volume of long-term investment capital for productive\npurposes.\nThe discussions we have had contemplate the establishment\nof a Bank for Reconstruction and Development which will to\nfacilitate the provision of long-term investment capital through\nprivate financial agencies by guaranteeing and participating in\nloans made by private investors. The Bank would also supplement\ninvestment of private financial agencies, if this becomes\nnecessary, by lending for productive purposes from its own\nresources when private capital is otherwise not available on\nreasonable terms.\nA full statement of the recommendations of the exports on\nsuch\nthe establishment of a Bank, Bank for Reconstruction and Development\nand of the principles on which such a Bank should be based is\nstill in preparation It is my hope that this statement of\nby technology\nprinciples will soon be completed and that it will be issued\nlater. Before it is published, I shall fully inform your committees.\nof the recommendations of the experts of the United Nationa.\nNow I should like to explain briefly some of the basic\nprinciples upon which the technicians are agreed in connection\nRegraded Unclassified\n88\n- 5 -\nwith the International Monetary Fund.\nHere are the purposes and policies as set forth in the\njoint statement:\n(1) To promote international monetary cooperation through\na permanent institution which provides the machinery\nfor consultation on international monetary problems.\n(2) To facilitate the expansion and balanced growth of\ninternational trade and to contribute in this way to\nthe maintenance of a high level of employment and real\nincome, which must be a primary objective of economic\npolicy.\n(3) To give confidence to member countries by making the\nFund's resources available to them under adequate\nsafeguards, thus giving members time to correct\nmaladjustments in their balance of payments without\nresorting to measures destructive of national or\ninternational prosperity.\n(4) To promote exchange stability, to maintain orderly\nexchange arrangements among member countries, and\nto avoid competitive exchange depreciation.\n(5) To assist in the establishment of multilateral pay-\nments facilities on current transactions among member\ncountries\nRegraded Unclassified\n89\n- 6 -\nand to and in\ncountries and in the elimination of foreign exchange\nrestrictions which hamper the growth of world trade.\n(6) To shorten the periods and lessen the degree of dis-\nequilibrium in the international balance of payments\nof member countries.\nThe joint statement recommends that all of the United and\nAssociated Nations subscribe approximately $8 billion to the\nFund in the form of gold and local currency. The resources of\nthe Fund would be available under adequate safeguards to help\nis\nand to\nmember countries to maintain exchange stability which they\ncorrect maladjustments in their balance of payments. Member\ncountries would be able to buy foreign exchange from the Fund\nin order\nwith their own currencies, to the extent of their quotas, to\nmeet international payments consistent with the purposes of\nthe Fund.\nThe par value of currencies of member countries would be\nexpressed in gold and could be changed only at the request of\nand approval of\nmember countries after consultation with the Fund and with Les\napproval. The Fund would approve a requested change in parity\nonly if it were essential to correct fundamental disequilibrium.\nPrompt consideration would be given to requests for necessary\nRegraded Unclassified\n30\n- 7 -\nadjustment of exchange rates. Member countries would not allow\ntheir exchange rates to fluctuate outside a narrow range based\non the agreed gold parity.\nVoting power in the Fund would be closely related to\nquotas. A member country could withdraw from the Fund\nimmediately and by giving notice in writing, Thereafter, the\nreciprosal obligations of the Fund country would be\nliquidated within a reasonable time.\nDuring the period of transition following the war, member\ncountries would be permitted to retain their exchange controls\nwith the expectation that these would be gradually relaxed.\nI am frank to say that in my opinion the agreement of\nconstitute a long slep in\nthe technical experts to these principles A is the way triund to prevent\na breakdown of currencies and the imposition and retention of\nrestrictive and discriminatory exchange measures after the\nThrough\nnow we\nwarD by providing now for international postwar cooperation assure\na stable and orderly pattern of exchange rates. The purposes\nset forth in this Joint Statement have long been the international\nmonetary policies of the Unite States. For years it has been our\nobjective to have these policies adopted by other countries.\nWe know of no better way of assuring general adherence to these\nRegraded Unclassified\n91\n- 8 -\ninternational monetary. policies than through international\ncooperation in an International Monetary Fund.\nWe believe that it is of the greatest importance that\nall of the United Nations are in agreement on the best means to\ndeal with these international financial problems after the war.\nThis is concrete evidence that the United Nations can and will\nwork together in establishing a peaceful and prosperous world\njust as they are now fighting together to destroy tyranny and\noppression.\nInternational cooperation on monetary and financial matters\nis the keystone of successful cooperation on all intemational\nworld trade\neconomic problems. Unless we agree to expand and develop the\nworld economy, few other agreements which we might\nRegraded Unclassified\n92\n- 9 -\nmake will or can be effective.\nThe tentative proposals that have been under discussion\nby the technical experts are part of a program for cooperation\non international economic problems among the United Nations.\nThe objectives of this program are the expansion and de velopment\nof international trade, the restoration of international invest-\nment for productive purposes, the maintenance of stable and\nwe can\norderly exchanges and through these means\ncontribute\nto\na high level of employment and production. The establishment\nof an International Monetary Fund and a Bank for Reconstruction\nand Development are important steps in the attainment of the\nobjectives of this broad program.\nI want to emphasize again that the discussions up to now\nhave all been of a technical nature and exploratory in\ncharacter. Whatever has been done represents the views of\nthe technical experts of this country and of other countries\nthat have been studying these questions. The United States\n15\nwill not in any way committed until Congress has taken\naction.\nIt is my hope that after studying the recommendations of\nthe technical experts, the governments of the United Nations\nwill come to the conclusion that there is sufficient basis of\nRegraded Unclassified\n93\n- 10 -\nagreement at a technical level to warrant the convening of a\nformal conference.\nI am happy to say that the President has authorized me to\nstate that if a conference is held, it is his intention to\ninvite direct congressional participation in the work of the\nUnited States Delegation.\nRegraded Unclassified\n94\nGentlemen:\nI am happy to tell you today that technical\nexperts of the United Nations have agreed upon a set\nof basic principles for an International Monetary\nStabilization Fund. This 18 a great step forward.\nIt is of greatest importance to all of us who believe\nthat the nations of the world can cooperate in dealing\nwith international economic problems.\nTechnicians representing some of these thirty\nnations have prepared a joint statement of the\nprinciples which are agreed upon. This statement\ndoes not, of course, bind any government to participate\nin the Stabilization Fund, though it does mean that\nthe Fund will be recommended to each of the governments\nas a practical means of meeting post-war monetary\nproblems.\nRegraded Unclassified\n95\n- 2 -\nI want to call particular attention to some of the\nfacts contained in this joint statement, but before I do\nthat, I should like to review with you some of the\nthings that have happened since I appeared before these\nCommittees on October 5 of last year. At that time, I\ntold you I would like to keep you informed of progress,\nand accordingly I appreciate this opportunity to bring\nyou up to date.\nSince I last talked to you, we have discussed the\nprinciples of the International Stabilization program\nwith bankers, labor representatives and other interested\ngroups in Washington, Chicago, Boston, Philadelphia,\nNew York, and other cities.\nRegraded Unclassified\n96\n- 3 -\nOut of these meetings came helpful suggestions, many of\nwhich were incorporated in our plans.\nThe vast majority of those with whom we have talked\nare inclined to look favorably upon the principle of\nco-operation to maintain stable and orderly exchange\nrates. Informed opinion seems to point to private\ninvestment on a world-wide basis as vital to post-war\nrecovery and reconstruction; and the stabilization\nof currencies among the United Nations through the\nmedium of an international fund, is generally believed\nto be a necessary prerequisite to this investment.\nRegraded Unclassified\n97\n- 4 -\nI believe we cannot expect American business men, nor\nbusiness men of any nation, to take major financial\nrisks, immediately upon the heels of a catastrophic\nglobal war, without some assurance that steps have\nbeen taken to prevent their investments from being\njeopardized by unduly fluctuating money values and\nsevere exchange restrictions.\nHaving studied the world picture after the last\nwar, we are all agreed that an effort must be made\nto prevent, insofar as possible, harmful fluctuations\nof currency; and to prohibit deliberate manipulation\nof currencies in an effort to secure unfair competitive\nadvantage in world trade.\nRegraded Unclassified\n98\n- 5 -\nWhen I was here on October 5, I spoke of a projected\nInternational Bank for Reconstruction and Development.\nBecause discussions on the Bank were initiated\nsomewhat later they are not yet completely finished.\nI can tell you, however, that there 1s considerable\nsupport for the general principles embodied in the\nWorld Bank, and that good progress has been made.\nThose with whom we have discussed the problem\nof reviving post-war international investment regard\nthe Bank as essential to the expansion of international\ntrade and the maintenance of a high level of business\nactivity.\nRegraded Unclassified\n99\n- 6 -\nThey believe it necessary to take steps to encourage\nand aid private investors in providing an adequate\nvolume of long-term investment capital for productive\npurposes.\nThe discussions we have had contemplate the\nestablishment of a Bank for Reconstruction and\nDevelopment to facilitate long-term investment capital\nthrough private financial agencies by guaranteeing and\nparticipating in loans made by private investors. The\nBank would also supplement investment of private financial\nagencies, if this becomes necessary, by lending for\nproductive purposes from its own resources when private\ncapital 18 otherwise not available on reasonable terms.\nRegraded Unclassified\n100\n- 7 -\nA full statement of recommendations on the\nestablishment of such a Bank, and of the principles\non which such a Bank should be based, 1s still in\npreparation by technicians. It is my hope that this\nstatement of principles will soon be completed and\nthat it will be issued later. Before it is published,\nI shall fully inform your Committees.\nNow I should like to explain briefly some of the\nbasic principles upon which the technicians are agreed in\nconnection with the International Monetary Fund.\nRegraded Unclassified\n101\n- 8 -\nHere are the purposes and policies as set forth in\nthe joint statement:\n(1) To promote international monetary cooperation\nthrough a permanent institution which provides\nthe machinery for consultation on international\nmonetary problems.\n(2) To facilitate the expansion and balanced growth\nof international trade and to contribute in\nthis way to the maintenance of a high\nlevel of employment and real income, which\nmust be a primary objective of economic\npolicy.\nRegraded Unclassified\n102\n- 9 -\n(3) To give confidence to member countries by\nmaking the Fund's resources available to\nthem under adequate safeguards, thus giving\nmembers time to correct maladjustments in\ntheir balance of payments without resorting\nto measures destructive of national or\ninternational prosperity.\n(4) To promote exchange stability, to maintain\norderly exchange arrangements among member\ncountries, and to avoid competitive exchange\ndepreciation.\nRegraded Unclassified\n103\n- 10 -\n(5) To assist in the establishment among member\ncountries of multilateral payments facilities\non current transactions, and to aid in the\nelimination of foreign exchange restrictions\nwhich hamper the growth of world trade.\n(6) To shorten the periods and lessen the degree\nof disequilibrium in the international\nbalance of payments of member countries.\nRegraded Unclassified\n104\n- 11 -\nThe joint statement recommends that all of the\nUnited and Associated Nations subscribe approximately\n$8 billion to the Fund in the form of gold and local\ncurrency. The resources of the Fund would be\navailable under adequate safeguards to help member\ncountries to maintain exchange stability and to\ncorrect maladjustments in their balance of payments.\nMember countries would be able to buy foreign exchange\nfrom the Fund with their own currencies, to the extent\nof their quotas, in order to meet international\npayments consistent with the purposes of the Fund.\nRegraded Unclassified\n105\n- 12 -\nThe par value of currencies of member countries\nwould be expressed in gold and could be changed only\nat the request of member countries after consultation\nand approval of the Fund. The Fund would approve a\nrequested change in parity only if it were essential\nto correct fundamental disequilibrium. Prompt\nconsideration would be given to requests for nacessary\nadjustment of exchange rates. Member countries would\nnot allow their exchange rates to fluctuate outside a\nnarrow range based on the agreed gold parity.\nRegraded Unclassified\n106\n- 13 -\nVoting power in the Fund would be closely related\nto quotas. A member country could withdraw from the\nFund immediately by giving notice in writing, and\nobligations would be liquidated within a reasonable\ntime.\nDuring the period of transition following the war,\nmember countries would be permitted to retain their\nexchange controls with the expectation that these\nwould gradually be relaxed.\nRegraded Unclassified\n107\n- 14 -\nI am frank to say that in my opinion the agreement\nof the technical experts to these principles constitutes\na long step on the way toward preventing a breakdown\nof currencies and the imposition and retention of\nrestrictive and discriminatory exchange measures after\nthe war. Through international cooperation now we\ncan assure a stable and orderly pattern of post-war\nexchange rates.\nThe purposes set forth in this Joint Statement\nhave long been the international monetary policies of\nthe United States. For years it has been our objective\nto have these policies adopted by other countries.\nRegraded Unclassified\n108\n- 15 -\nWe know of no better way of assuring general adherence\nto these policies than through international cooperation\nin an International Monetary Fund.\nWe believe that it is of the greatest importance\nthat all of the United Nations are in agreement on the\nbest means to deal with these international financial\nproblems after the war. This is concrete evidence\nthat the United Nations can and will work together in\nestablishing a peaceful and prosperous world just as\nthey are now fighting together to destroy tyranny and\noppression.\nInternational cooperation on monetary and financial\nmatters is the keystone of successful cooperation on\nall international economic problems.\nRegraded Unclassified\n109\n- 16 -\nUnless we agree to expand world trade and develop the\nworld economy, few other agreements which we might\nmake will or can be effective.\nThe tentative proposals that have been under\ndiscussion by the technical experts are part of a\nprogram for cooperation on international economic problems\namong the United Nations. The objectives of this program\nare the expansion and development of international\ntrade, the restoration of international investment for\nproductive purposes, the maintenance of stable and\norderly exchanges. Through these means, we can\ncontribute to a high level of employment and production.\nRegraded Unclassified\n110\n- 17 -\nThe establishment of an International Monetary Fund and\na Bank for Reconstruction and Development are important\nsteps in the attainment of the objectives of this\nbroad program.\nI want to emphasize again that the discussions up\nto now have all been of a technical nature and\nexploratory in character. Whatever has been done\nrepresents the views of the technical experts of\nthis country and of other countries that have been\nstudying these questions. The United States is not in\nany way committed until Congress has taken action.\nRegraded Unclassified\n111\n- 18 -\nIt is my hope that after studying the recommendations\nof the technical experts, the governments of the United\nNations will come to the conclusion that there is\nsufficient basis of agreement at a technical level to\nwarrant the convening of a formal conference.\nI am happy to say that the President has authorized\nme to state that if a conference is held, it is nis\nintention to invite direct Congressional participation\nin the work of the United States Delegation.\nRegraded Unclassified\n112\nGentlemen:\n19/30/77\nI am happy to tell you today that technical\nexperts of the United Nations have agreed upon a set\nof basic principles for an International Monetary\nStabilis\ntion Fund. This is a great step forward.\nIt 18 of greatest importance to all of us who believe\nthat the nations of the world can cooperate in dealing\nwith international economic problems.\nTechnicians representing some of these thirty\nnations have prepared a joint statement of the\nprinciples which are agreed upon. This statement\ndoes not, of course, bind any government to participate\nInternational monetary\nin the St billeation Fund, though it does mean that\nthe Fund will be recommended to each of the governments\nas a practical means of meeting post-war monetary\nproblems.\nRegraded Unclassified\n113\n- 2 -\nI want to call particular attention to some of the\nfacts contained in this joint statement, but before I do\nthat, I should like to review with you some of the\nthings that have happened since I appeared before these\nCommittees on October 5 of last year. At that time, I\ntold you I would like-to keep you informed of progress,\nand\naccordingly I appreciate this opportunity to bring\nyou up to date.\nSince I last talked to you, we have discussed the\nprinciples of the International Stabilization program\nwith bankers, labor representatives and other interested\ngroups in Washington, Chicago, Boston, Philadelphia,\nNew York, and other cities.\nRegraded Unclassified\n114\n- 3 -\nOut of these meetings came helpful suggestions, many of\nwhich were incorporated in our plans.\nThe vast majority of those with whom we have talked\nare inclined to look favorably upon the principle of\nco-operation to maintain stable and orderly exchange\nrates. Informed opinion seems to point to private\ninvestment on a world-wide basis as vital to post-war\nrecovery and reconstruction; and the stabilization\nof currencies among the United Nations through the\nmedium of an International fund, 18 generally believed\nto be a necessary prerequisite to this investment.\nRegraded Unclassified\n115\n- 4 -\nI believe we cannot expect American business men, nor\nbusiness men of any nation, to take major financial\nrisks, immediately upon the heels of a catastrophic\nglobal war, without some assurance that steps have\nbeen taken to prevent their investments from being\njeopardized by unduly fluctuating money values and\nsevere exchange restrictions.\nHaving studied the world picture after the last\nwar, we are all agreed that an effort must be made\nto prevent, insofar as possible, harmful fluctuations\nof currency; and to prohibit deliberate manipulation\nof currencies in an effort to secure unfair competitive\nadvantage in world trade.\nRegraded Unclassified\n116\n- 5 -\nWhen I was here on October 5, I spoke of a projected\nInternational Bank for Reconstruction and Development.\nBecause discussions on the Bank were initiated\nsomewhat later they are not yet completely finished.\nI can tell you, however, that there is considerable\nsupport for the general principles embodied in the\nWorld Bank, and that good progress has been made.\nThose with whom we have discussed the problem\nof reviving post-war international investment regard\nthe Bank as essential to the expansion of international\ntrade and the maintenance of a high level of business\nactivity.\nRegraded Unclassified\n117\n- 6 -\nThey believe it necessary to take steps to encourage\nand aid private investors in providing an adequate\nvolume of long-term investment capital for productive\npurposes.\nThe discussions we have had contemplate the\nestablishment of a Bank for Reconstruction and\nDevelopment to facilitate long-term investment capital\nthrough private financial agencies by guaranteeing and\nparticipating in loans made by private investors. The\nBank would also supplement investment of private financial\nagencies, if this becomes necessary, by lending for\nproductive purposes from its own resources when private\ncapital 18 otherwise not available on reasonable terms.\nRegraded Unclassified\n118\n- 7 -\nA full statement of recommendations on the\nestablishment of such a Bank, and of the principles\non which such a Bank should be based, is still in\npreparation by technicians. It is my hope that this\nstatement of principles will soon be completed and\nthat it will be issued later. Before it is published,\nI shall fully inform your Committees.\nNow I should like to explain briefly some of the\nbasic principles upon which the technicians are agreed in\nconnection with the International Monetary Fund.\nRegraded Unclassified\n119\n- 8 -\nHere are the purposes and policies as set forth in\nthe joint statement:\n(1) To promote international monetary cooperation\nthrough a permanent institution which provides\nthe machinery for consultation on international\nmonetary problems.\n(2) To facilitate the expansion and balanced growth\nof international trade and to contribute in\nthis way to the maintenance of a high\nlevel of employment and real income, which\nmust be a primary objective of economic\npolicy.\n120\n- 9 -\n(3) To give confidence to member countries by\nmaking the Fund's resources available to\nthem under adequate safeguards, thus giving\nmembers time to correct maladjustments in\ntheir balance of payments without resorting\nto measures destructive of national or\ninternational prosperity.\n(4) To promote exchange stability, to maintain\norderly exchange arrangements among member\ncountries, and to avoid competitive exchange\ndepreciation.\nRegraded Unclassified\n121\n- 10 -\n(5) To assist in the establishment among member\ncountries of multilateral payments facilities\non current transactions, and to aid in the\nelimination of foreign exchange restrictions\nwhich hamper the growth of world trade.\n(6) To shorten the periods and lessen the degree\nof disequilibrium in the international\nbalance of payments of member countries.\nRegraded Unclassified\n122\n- 11 -\nThe Joint Statement recommends that all of the\nUnited and Associated Nations subscribe approximately\n$8 billion to the Fund in the form of gold and local\ncurrency. The resources of the Fund would be\navailable under adequate safeguards to help member\ncountries to maintain exchange stability and to\ncorrect maladjustments in their balance of payments.\nMember countries would be able to buy foreign exchange\nfrom the Fund with their own currencies, to the extent\nof their quotas, in order to meet international\npayments consistent with the purposes of the Fund.\nRegraded Unclassified\n123\n- 12 -\nThe par value of currencies of member countries\nwould be expressed in gold and could be changed only\nat the request of member countries after consultation\nand approval of the Fund. The Fund would approve a\nrequested change in parity only if it were essential\nto correct fundamental disequilibrium. Prompt\nconsideration would be given to requests for necessary\nadjustment of exchange rates. Member countries would\nnot allow their exchange rates to fluctuate outside a\nnarrow range based on the agreed gold parity.\nRegraded Unclassified\n124\n- 13 -\nVoting power in the Fund would be closely related\nto quotas. A member country could withdraw from the\nFund immediately by giving notice in writing, and\nobligations would be liquidated within a reasonable\ntime.\nDuring the period of transition following the war,\nmember countries would be permitted to retain their\nexchange controls with the expectation that these\nwould gradually be relaxed.\nRegraded Unclassified\n125\n- 14 -\nI am frank to say that in my opinion the agreement\nof the technical experts to these principles constitutes\na long step on the way toward preventing a breakdown\nof currencies and the imposition and retention of\nrestrictive and discriminatory exchange measures after\nthe war. Through international cooperation now we\ncan assure a stable and orderly pattern of post-war\nexchange rates.\nThe purposes set forth in this Joint Statement\nhave long been the international monetary policies of\nthe United States. For years it has been our objective\nto have these policies adopted by other countries.\n126\n- 15 -\nWe know of no better way of assuring general adherence\nto these policies than through international cooperation\nin an International Monetary Fund.\nWe believe that it is of the greatest importance\nthat all of the United Nations are in agreement on the\nbest means to deal with these international financial\nproblems after the war. This is concrete evidence\nthat the United Nations can and will work together in\nestablishing a peaceful and prosperous world just as\nthey are now fighting together to destroy tyranny and\noppression.\nInternational cooperation on monetary and financial\nmatters is the keystone of successful cooperation on\nall international economic problems.\nRegraded Unclassified\n127\n- 16 -\nUnless we agree to expand world trade and develop the\neconomic\nworld economy, few other agreements which we might\nmake will or can be effective.\nThe tentative proposals that have been under\ndiscussion by the technical experts are part of a\nprogram for cooperation on international economic problems\namong the United Nations. The objectives of this program\nare the expansion and development of international\ntrade, the restoration of international investment for\nproductive purposes, the maintenance of stable and\norderly exchanges. Through these means, we can\ncontribute to a high level of employment and production.\nRegraded Unclassified\n128\n- 17 -\nThe establishment of an International Monetary Fund and\na Bank for Reconstruction and Development are important\nsteps in the attainment of the objectives of this\nbroad program.\nI want to emphasize again that the discussions up\nto now have all been of a technical nature and\nexploratory in character. Whatever has been done\nrepresents the views of the technical experts of\nthis country and of other countries that have been\nstudying these questions. The United States is not in\nany way committed until Congress has taken action.\nRegraded Unclassified\n129\n- 18 -\nIt is my hope that after studying the recommendations\nof the technical experts, the governments of the United\nNations will come to the conclusion that there is\nsufficient basis of agreement at a technical level to\nwarrant the convening of a formal conference.\nI am happy to say that the President has authorized\nme to state that if a conference is held, it is his\nintention to invite direct Congressional participation\nin the work of the United States Delegation.\nRegraded Inclassified\n130\nApril 20, 1944\nHarry White.\nSecretary Morgenthau.\nPlease write a letter for me to sign to\nAmbassador Winant thanking him for the assistance\nhe has given us this last week with the English on\nthis monetary matter. I call him Gil 80 address\nit, \"Dear G11\".\nLetter in -4/21/44-\nPogradod\n131\nTREASURY DEPARTMENT\n4th\nINTER OFFICE COMMUNICATION\nDATE April 20, 1944\nTO\nSecretary Morgenthau\nFROM\nCharles Bell pull\nOf approximately 11,000 males between 18 and 37 inclusive, employed\nin the Treasury Department, there were as of March 15, 1944, 340 deferred\nfrom military service on occupational grounds. Of this number 118\ndeferments were made at the request of the Department. of the 118 cases\ndeferred at the Department's request one falls in the 18 to 25 age group;\nsix in the 26 to 29 age group; and 111 in the 30 to 37 age group.\nThe remaining 222 were deferred by local draft boards without the\nrequest of the Department. It is likely that in many of these cases the\ndraftee sought occupational deferment direct. In this group five fall\nin the 18 to 25 age group; 29 in the 26 to 29 age group; and 188 in the\n30 to 37 age group. As you know draft boards are being notified that the\nDepartment does not request deferment on occupational grounds in these\ncases; however, before such letters go to the draft boards our bureaus\nhave an opportunity to review each case and make a decision then as to\nwhether or not it is desired to recommend deferment.\nRegraded Unclassified\n132\nMr. Charles Bell,\nApril 20, 1944.\nMrs. Doyle.\nSecretary Morgenthau.\nWhat would you think of offering prizes to the\nemployee of the Treasury who makes the best suggestion\nalong the following lines: namely, that by increasing\nthe comfort of the employee and lessening the strain,\nwe can at the same time increase the efficiency of\nany particular group? Think that over and I would be\nglad to give small monetary prizes out of my own-pocket.\nAfter you have thought it over, the two of you might\ncome to see me. I got this idea from reading Mrs.\nDoyle's memorandum.\n1C\n9\na\n5/15 3^\n5/20 report reportes Pall to be\nwill pay\nWhen who\nRegraded Unclassified\n133\nApril 20, 1944.\nDear Harry:\nAs you undoubtedly know, the Fifth War Loan will\nopen June 12 and extend through July 8. Our over-all\ngoal of $16 billion is larger than that for any previous\ndrive, and we must also sell a greater portion than\never before, $6 billion, to individuals.\nThe close cooperation of the War Department in\nformer loan drives has been of great value. During\nthe Fourth War Loan, our six million volunteers, who\nsold more than 69 million separate War Bonds to indi-\nviduals, were assisted immeasurably by Army shows,\nbands, speakers and exhibits of equipment.\nI should appreciate it very much if you would be\nwilling to issue an order or directive, similar to\nthat issued for the Fourth War Loan drive, on coopera-\ntion between the War Department and the War Finance\nProgram. The assignment to the War Bond Program of a\nliaison officer in each of the nine Service Commands\nwas most helpful, so I hope that this arrangement can\nbe continued in the forthcoming drive. As before, we\nwill undertake to channel to the Commanding General of\neach Service Command all requests from State or local\nWar Finance Committees for Army cooperation.\nSincerely,\n(Signed) Henry Morgenthan, Jr.\nThe Honorable Henry Stimson,\nSecretary of War,\nWashington, D. C.\nRegraded Unclassified\n134\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDATE\nApril 20, 1944\nTO Secretary Morgenthau\nFROM Fred Smith\nWright Patman respectfully requests that if possible we\nmake the Texarkana speech on Monday night instead of Sunday\nnight. He says Texarkana is in the middle of the Bible belt\nand he is afraid there will be various reactions from the\npreachers if we competed with the churches for attention.\nGamble says he has no serious objections to switching\nit. My own feeling is that if the people down there are so\nfaithful to the church they wouldn't even hear a broadcast\non Sunday night and maybe for that reason, the switch is a\ngood idea anyway. That would put the opening speech on\nMonday, June 12.\nRegraded Unclassified\n135\nApril 20, 1944\nMr. Blough\nSecretary Morgenthau\nIn reply to your memorandum dated April 20th\non taxation, Point Two, if there is any business in\nthe United States which can stand & 80% tax, it\nis the cabarets. I, therefore, would like the\nTreasury position to be that we are in favor of\nkeeping the rate at its present level.\nRegraded Unclassified\nTreasury Department\n136\nDivision of Tax Research\nO\nDate April 20,1944\nTo: Miss Chauncey\nFrom: Mr. Blough\nPlease have brought to\nthe Secretary's attention\nthat his consideration of\nPoint 2 is desired.\nRB\na - 2\ni2 L 2 be Y is / -\nis 30% Le to Cal\nV , F. 2 d \\ C\nRegraded Unclassified\n137V\nApril 20, 1944\nMEMORANDUM FOR THE SECRETARY\nSubject: Taxation\nYour consideration of Point 2 1s\nrequested. No immediate action required.\n1. The Committee on Waye and Means met at 10:00 A.M.,\nWednesday, April 19th. After discussion of possible\nalternative rate schedules the Committee voted on motion\nof Mr. Cooper to accept the previously adopted surtax rate\nschedule appearing in the Bill. Reading of the Bill was\nthen resumed but not completed. No further controversial\nissues arose. The Committee is meeting again Thursday,\nApril 20 at 10:00 A. M.\n2. Congressman Knutson is planning to introduce a\nresolution to lower the tax on cabarets from 30 percent to\n10 percent. Prior to the Revenue Act of 1943 the cabaret\ntax was 5 percent of the total charge including food.\nThat Act increased the rate to 30 percent, whereas other\nluxury items were increased from 10 percent to 20 percent.\nUnder the impact of the heavy tax some cabarets are going\nout of business, while others are changing the methods of\noperation to escape or minimize the tax.\nThe Treasury will undoubtedly be asked for its atti-\ntude toward the proposed reduction. Mr. Surrey and I are\ndiscussing the matter with Mr. Bell, Mr. Gaston, and\nMr. Sullivan. It may have political implications out of\nproportion to the revenue involved.\n3. In accordance with my earlier memorandum, the\ninterdepartmental group discussing tax incentives in the\npostwar period is meeting this afternoon from 2 to 4 P. M.\nin Room 220.\nRoyBlough\n138\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDATE April 20, 1944\nTO\nSecretary Morgenthau\nFROM\nMr. Haas AR\nThis memorandum was prepared by Henry Murphy\nin response to your request for a short version of\n& previous memorandum on the same subject.\nWe have reviewed with you orally in conferences\nin your office all the materials contained in the\nmemorandum.\n139\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDATE\nAPR 20 1944\nTO\nSecretary Morgenthau\nFROM\nMr. Hass\nSubject The Federal Reserve Ratio\nUnder existing statutes, the ability of the Federal\nReserve System to support the market for United States\nsecurities and the credit structure generally 1s determined\nprimarily by the Federal Reserve ratio -- 1.e., the ratio\nof gold and \"lawful money\" combined held by the Federal\nReserve Banks to their combined note and deposit liabilities.\nThis ratio has a legal minimum of about 37 or 38 percent,\nthe exact figure depending upon a variety of circumstances.\nIf the ratio should fall below this legal minimum, addi-\ntional credit could be extended by the Federal Reserve Banks\nonly pursuant to an emergency suspension of requirements by\nthe Board of Governors. Such a suspension would be subject\nto a penalty tax and would have to be renewed by the Board\nat fifteen-day intervals -- conditions which might make it\ndifficult or impossible to maintain an orderly market in\nUnited States securities.\nThe fluctuation of the Federal Reserve ratio yearly since\nthe establishment of the System and monthly since the beginning\nof 1940 18 shown on the accompanying chart. The ratio has\ndeclined from 91 percent at the end of 1942 to 63 percent at\nthe end of February of this year. This decline will probably\ncontinue at about the present rate for the duration of the war\nand for some time thereafter, unless some definite monetary\nmove is made to check it. As indicated on the chart, we esti-\nmate that it will have fallen to about 48 percent by the end\nof this year.\nIt 1s clear that the ratio will not reach or closely\nFederal Reserve System need not stint in its support of the\napproach the legal minimum this year. Until it does, the\nGovernment security market. It is likely, however, that as\nthe ratio approaches, and perhaps falls below, 50 percent\nduring the year, it will excite increased comment and some\nability of the Treasury and the Federal Reserve System to\nskepticism on the part of the market with respect to the\nmaintain their present support of the Government security\nmarket. Any such skepticism should be met with an expres-\nsion of confidence in the continuance of this ability.\nRegraded Unclassified\nSecretary Morgenthau - 2\nThere are & number of measures which might be taken under\nexisting law to increase the Federal Reserve ratio. The most\nimportant of these measures would be the issuance of Federal\nReserve Bank notes in lieu of Federal Reserve notes. Federal\nReserve Bank notes require no reserve; and if their issuance\nshould be substituted generally for that of Federal Reserve\nnotes, the problem of the Federal Reserve ratio would be\nsolved for the duration of even a long war.\nThe issuance of Federal Reserve Bank notes is authorized\nby law without limit as to amount. None have been issued\nsince 1933, however, except for about $660 millions issued\nduring the past year. The issuance of these notes -- and more\nparticularly the somewhat unorthodox manner in which they were\nissued -- precipitated a storm of protest, and a bill to pre-\nvent their further issuance passed the Senate last May and 18\nnow pending (inactive) in the House Banking and Currency Com-\nmittee. Under these circumstances, it would probably be\ninadvisable to issue additional Federal Reserve Bank notes\nthis year. The issuance of these notes might be well received\nnext year, however, 1f the need for it 18 carefully explained\nand the manner of issuance 18 altered to meet the criticism\ndirected at last year's operation. If this should prove to\nbe the case, no other action would need to be taken for the\nduration in order to maintain the Federal Reserve ratio.\nAside from the issuance of Federal Reserve Bank notes, the\nprincipal steps which could be taken under existing statutes\nto check the decline of the Federal Reserve ratio are the fol-\nlowing:\n(1) Reduce member bank reserve requirements\n(2) Monetize additional silver\n(3) Use gold in Stabilization Fund\nNone of the above measures would do more than check the decline\nin the ratio for a few months, however. The most potent of\nthem, & reduction of member bank reserve requirements to the\nstatutory minima, would only offset the decline in the ratio\nfor about seven months.\nFinally, in addition to remedies available under present\nstatutes, there remains the possibility of seeking an altera-\ntion of existing law. Such legislation might be obtained next\nspring, by which time the necessity for action will probably\nbe clearer to Congress.\nAttachment\nRegraded Unclassified\n140\nRATIO OF RESERVE HELD TO COMBINED DEPOSIT\nAND NOTE LIABILITIES OF FEDERAL RESERVE BANKS\nPERCENT\nPERCENT\nPERCENT\nEnd of Year\nEnd of Month\n110\n110\n110\n100\n100\n100\n90\n90\n90\n80\n80\n80\n70\n70\n70\n60\n60\n60\n50\n50\n50\n48.2 Est\n48.2 Est\n40\n40\n40\n30\n30\n30\n20\n20\n20\n10\n10\n10\no\n0\nO\n1914\n19\n24\n29\n34\n39\n44\n1940\n1941\n1942\n1943\n1944\nOffice of the Secretary of the Treasury\nF-329\nDivision of Research and Statistics\nRegraded Unclassified\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDATE April 20, 194\nSecretary Morgenthau\nH. D. White\nIncrease in the Earnings of Banks and All Active\nAmerican Corporations Since 1932.\nnet earnings after taxes of all national banks and\nber banks, recovering from the $255 million deficit\nclimbed gradually to an annual level of nearly $350\nin the prewar years 1939 to 1940, but shot up rapidly\nto $563 million, 8.8 shown in the following table:\nNet Earnings of All National Bank and State\nMember Banks\n(in millions of dollars)\nCalendar Year\nBefore Taxes\nAfter Taxes\n1932\n-$188 (deficit)\n$255 (deficit)\n1937\n423\n$337\n1938\n347\n265\n1939\n432\n347\n1940\n449\n349\n1941\n519\n390\n1942\n532\n383\n1943\n758\n563\nThe earnings after taxes of all active American corpora-\nrose from a deficit of $5,462 million in 1932 to profits\n655 million in 1940. The rise in their profits was very\nafter 1940 and rose to more than $8,500 million in 1943,\nhown in the following table:\nNet Earnings of All American Corporations\n(in millions of dollars)\nCalendar Year\nBefore Taxes\nAfter Taxes\n1932\n-$5,187 (deficit)\n-$5,462(deficit)\n1937\n5,148\n3,872\n1938\n2,340\n1,480\n1939\n5,272\n4,040\n1940\n7,204\n4,655\n1941\n14,107\n6,941\n1942\n19,850\n8,100\n1943\n22,000\n8,550\nRegraded Unclassified\n142\nVICTORY\nTREASURY department\nBUY\nVRITED\nSTATES\nWAR\nPROCUREMENT DIVISION\nBONDS\nSTAMPS\nWASHINGTON 25\nICE OF THE DIRECTOR\nApril 20, 1944\nMEMORANDUM TO THE SECRETARY:\nRepresentatives of the Treasury Procurement Division,\nthe Surplus War Property Administration, and the Federal\nWorks Agency met with representatives of the manufacturers\nand distributors of construction equipment for the purpose\nof exchanging ideas with regard to the disposal of such\nequipment when it becomes surplus as a result either of no\nfurther need on the part of the armed forces, or of con-\ntract terminations.\nA conference was held with Mr. Charles Bell to dis-\ncuss the type of personnel and proposed classifications\nfor the field organizations to handle the recording and\naccountability control of surplus property by means of the\nI.B.M. system. The personnel program was approved. Steps\nare being taken to complete promptly the manual which will\nprovide guidance in this work and to recruit the necessary\npersonnel.\nA conference has been arranged with representatives\nof OPA, RFC, and the Procurement Division for Saturday after-\nnoon to establish the price ceiling for sales of passenger\nvehicles to dealers. A report will be submitted to you as\nto the outcome.\nOffers received for the motorcycles are now being\nanalyzed and will be reported in 8. day or two.\nGAMEN Clifton.E. Mack\nDirector of Procurement\nRegraded Unclassified\n143\nTreasury Department\nDivision of Monetary Research\nDate April 20\n1944\nTo:\nMrs. McHugh\nI informed Secretary Morgenthau\nthat Mr. Friedman was leaving by plane\nat eleven o'clock today and therefore\nwould not be able to go to New York to\ntalk with Governor Lehman unless the\nSecretary wished Mr. Friedman to delay\nhis trip. Secretary Morgenthau sug-\ngested that Mr. Friedman telephone\nGovernor Lehman, to find out what he\nhad in mind. Mr. Friedman telephoned\nhim this morning and spoke to him at\nsome length.\nH.D.W.\nMR. WHITE\nBranch 2058 - Room 214-1/2\nRegraded Unclassified\nwhite\n144\n),072.90 C\nUNITED NATIONS\n1 8m\nRELIEF AND REHABILITATION ADMINISTRATION\nnone\n1344 CONNECTICUT AVENUE\nWASHINGTON 25. D. C.\nNew York, N.Y.\nApril 17, 1944\nPersonal\nDear Henry,\nI am just in receipt of your letter of April 13,\nwhich was forwarded to me from Washington. I am still at Doctors\nHospital where I still continue to have treatment for my leg which\nI think 1s slowly improving.\nI am sorry that Harold Glasser is not available. I\nam sure, however, that Mr. Friedman on his arrival in Cairo can\nbe of very substantial value in exploring the whole subject of\ncurrency and price control which I think 1s one of the most\nimportant matters with which the British and we will have to\ndeal in any Balkan undertaking. I would very much like to see\nMr. Friedman in Washington or here before he leaves for Cairo.\nMy plans with regard to returning to Washington are still\nindefinite. I will, however, probably be here in New York for\nthe balance of this week and hope to get to Washington early\nnext week. On my return to Washington I think I shall go for\na few days either to Walter Reed or the Naval Hospital for\nfurther treatment. When Mr. Friedman's plans with regard to\nleaving for the Middle East are settled I would appreciate it\nif he would telephone me and I can then arrange for a specific\ntime to see him either here or in Washington. Thanks ever 80\nmuch for letting me know about Glasser and Mr. Friedman's plans.\nIt was grand seeing you and Ellie at the hospital a\nfew days ago. I hope to see you soon after my return to Washing-\nton.\nWith affectionate greetings to you and Ellie in which\nEdith joins me, I am\nVery sincerely yours,\nHerber\nHonorable Henry Morgenthau, Jr.\nN3 876\nSecretary of the Treasury,\nWashington, D.C.\nRegraded Unclassified\n145\nTREASURY DEPARTMENT an\nINTER OFFICE COMMUNICATION\nDATE\nTO\nSecretary Morgenthau\nApril 20, 1944\nFROM\nJoseph J. O'Connell, Jr.\nFor your information\n(Argentine gold shipment)\nAs I understand it, the only practical way\nof preventing the shipment of gold from Argentine\nto Switzerland is through use of the British\nnavicert system.\nAt our request, the State Department has advised\nthe British that this Government does not favor the\nproposed shipment, and has requested that the British\nnot issue a navicert for it without prior consultation\nwith us. Our information is that the British have\nnot yet replied.\nThe State Department and the British both know\nour position in the matter, and presumably the latter\nwill not move to permit the shipment without talking\nwith us. In any event, it is 8. little too early\nto approach State again, though we will do so within\nthe next week if we haven't heard from them in the\nmeantime.\nRegraded Unclassified\n146\nApril 20, 1944\nMr. 0'Connell\nSecretary Morgenthau\nI have read your memorandum about a shipment of\ngold from the Argentine. It is not quite clear to me\nfrom your memorandum whether this shipment has definitely\nbeen held up by the State Department or not. I'd like a\nclearer memorandum and I positively want to do everything\nwithin our power to stop this shipment of gold from\nPortugal Agentina? to Switzerland. Undoubtedly it's a German\naccount; at least, that is my strong suspicion.\nFinished. See 1)commells memo memo/4/2014-\nRegraded Unclassified\n147\nEXECUTIVE OFFICE OF THE PRESIDENT\nWAR REFUGEE.BOARD\n14\nINTER-OFFICE COMMUNICATION\nDATE\nApril 20,1944\nTO\nSecretary Morgenthau\nFROM\nJ.W. Pehle\nFor your information:\nApparently the possibility of having Corcoran go\nto Spain for the War Refugee Board is still not dead.\nI talked to Corcoran yesterday and he said that he had\nan appointment to discuss the matter with the President\njust before the President went away, but the appoint-\nment was cancelled at the last minute. Corcoran said\nhe would see the President when he gets back and will\nask him whether he is to go to China or Spain.\nMcDonald is coming down to see me next week. I\nhave real doubts as to whether he could crack the\nSpanish situation however.\nJohn\n148\nApril 20, 1944.\nRegraded Unclassified\nAMREP,\nALGIERS.\n1202, Twentieth.\nAgreement has been reached in principle between\nAmerican and British Governments to transfer to UNERA\nfull responsibility for operation and maintenance of\nrefugee camp at Fedhala near Casablance.\nDetailed arrangements as to transfer of responsibility\nare now being worked out. It is proposed that the American\nand British Governments should retain responsibility of\ntransporting refugees to North Africa and that UNRRA's\nprimary responsibility would be to maintain refugees\nafter their arrival in North Africa. Responsibility for\neventual resettlement of refugees not to be repatriated\nwill remain unchanged, although under terms of UNRRA\nAgreement UNRRA will assist in repatriation of refugees\nwho are to return to their original countries. Effective\ndate of transfer will occur after appropriation by\nUnited States Congress of funds for contribution to UNRRA,\nwhich is expected before the middle of June.\nUNRRA is instructing Beckelman to take up\nwith French authorities in Algiers with respect to proposed\ntransfer in order to obtain their consent as required.\nby UNRRA Agreement to operations in French territory.\nYou are requested to join with Beckslman in discussions\nwith the French to the extent necessary, although, since\nFrench Committee is genber of UNRRA, the initial approach\nshould be made by Beckelman on behalf of UMRRA. UNRRA\nhas informally notified French representatives how of\nthese plans. It is understood that the British Govern-\nment is issuing similar instructions to Algiers.\nHULL\n(DA)\nLASEGN:MKG\n4/18/44\nVS\nWRB\nAccompanied by hectograph.\nApril 20, 1944.\n149\nCABLE TO CAIRO\nFrom War Refugee Board to MacVeagh\nReference your no. 88 of April 13, 1944.\nWar Refugee Board is extremely interested\nin project involving escape of Jews from occupied terri-\ntory to Italy and Mediterranean region. Please advise\nWar Refugee Board of any further developments in this\nsituation, particularly result of mentioned approach\nto Tito. Board is prepared to arrange for any assis-\ntance, including funds.\nApril 20, 1944\n3:00 p.m.\nfh; jbj; jwp\nRegraded Unclassified\n150\nTELEGRAM SENT\nThis telegram must be\nApril 20, 1944\nparaphrased before being\ncommunicated to anyone\nmidnight\nother than a Governmental\nagency. (BR)\nRESTRICTED\nAMEMBASSY,\nLONDON.\n3169\nFOR THE AMBASSADOR.\nReference your no. 2696 of April 3, 1944 concerning relief\nto refugees in Rome.\nWar Refugee Board has been advised by representative of\nAmerican Jewish Joint Distribution Committee in Portugal that\n1,400,000 lire have already been borrowed in Rome against the\n$20,000 credit established in London.\nWar Refugee Board is discussing with Apostolic Delegate\nin Washington possibility of making future remittances for this\nprogram direct from United States through Vatican channels.\nAmerican Jewish Joint Distribution Committee is prepared to make\nfurther sums available for this relief work but will wait outcome\nof aforementioned discussions.\nHULL\n(GLW)\nHULL\nWRB :GLW:KG\nBC\nSE\nWT\nS/CR\n4/20/44\nRegraded Unclassified\n151\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM: American Embassy, London\nTO:\nSecretary of State, Washington\nDATED: April 20, 1944\nNUMBER: 3233\nSECRET\nIn accordance with the request contained in the Depart-\nmont's 3005, April 18, we immediately sought cansent of the\nBritish Government. The head of the Relief Section in NEW\nwas simultaneously appreach because of the urgency of the\nmatter. Even though the reply of the British Government is\nnot yet available, we find the opinion of the cited Section\nHead (w. he Camps who in Greek relief matters is the most\ninfluential British efficial) is agreeable to diverting of a\nSwedish ship engaged in Greek relief, the choice to be left\nto the Svedes though the BARDALAND seens likely and conditional\non Russian and German naval and air safe conducts; but to any\nappreach mde to Germany before the departure from the Baltic\n(schedule for April 25 or 26) of the last of the three addi-\ntiomal and two replacing Svedish ships approved by the Germans\nfor the Greek relief fleet, Camps is emphatic that whatever\nanticipatory arrangements be made he would object stremously.\nShall I guide my discussion with the Swedish Minister in\nthe same sense, if this proves to be the line taken by the\nBritish when their reply is received? Valuable time my be\nsaved by your advance instructions.\nBoth the Foreign Office and the Ministry of War Transport\nwere appreach by us upon receipt of the Department's\ncable of March 31, No. 2516. Instructions have gone forward\nto Gibson Graham which are generally favorable, according to\nan informal statement made yesterday by latter Ministry.\nWINANT\nRegraded Unclassified\n152\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nThe American Minister, Helsinki\nTO:\nThe Secretary of State, Washington\nDATE:\nApril 20, 1944\nNUMBER:\n341\nSECRET\nThe following Message is for the War Refugee Board.\nAlong the lines of my message number 303 dated April 3\nI have had some further informal discussion regarding refugee\nquestions and with reference to the intentions of the Board\nin respect to Finland, I would appreciate some guidance. It\nis my belief that the Government of Finland would issue a\ndeclaration of its willingness to facilitate the movement of\nrefugees as envisaged in airgram from the Department dated\n7:30 p.m., February 29, paragraph 6. The political implica-\ntions involved will, however, be overlooked by the Department.\nThe Government of Finland may sooner or later link the welfare\nof its three hundred thousand Karelians who in all probability\nwould leave the area to be ceded under current peace terms to\nRussia by Finland, or the one hundred and fifty thousand who\nare already in West Finland, with the general plan for the\namelioration of Refugees' conditions. With reference to as-\nsistance for fifty thousand Ingrians from the USSR in German-\nland, a question may also be raised. Up to the present time,\nhowever, these points have not been made to ne.\nAs the Department knows, the Government of Finland on\nthe other hand, on a basás of international cooperation at\nthis time would be strongly attracted by any opportunity to\nassociate itself with western democraties and would in all\nprobability issue a declaration of the type in question for\nthis reason.\nAs my number 82 this is being repeated to Stockholm for\nOlsen.\nThe Jewish Community has advised me and the report is\nconfirmed by the Swedish Legation, that the Government of\nSweden has decided to allow entry of the 106 refugees which\nparagraph eight of my telegram in reference mentioned, into\nSweden. It is indicated by the Assistant Chief of the\nPolitical Department of the Foreign Office that it might be\nopportune to make a statement in connection with the travel\nof these refugees, if a statement were forthcoming. It was\nasked by him whether any governments other than ours have\nmade declarations up to the present ime and he would like to\nknow their contents if such declarations have been made.\nGULLION\nDCR:MPL\n4/21/44\nRegraded Unclassified\n153\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nThe Allied Control Commission, Naples\nTO:\nThe Secretary of State, Washington\nDATE:\nApril 20,1944\nNUMBER:\n3590\nSECRET\nMurphy sends the following message.\nAt the suggestion of the Combined Chiefs of Staff a study\nof the civilian relief problem in Italy has recently been made\nand completed by Patrick Malin, Vice President of the Inter-\ngovernmental Committee on Refugees. With regard to non-Italian\npersons in Italy especially Jews, Malin although he found ar-\nrangements satisfactory for the relief of Italians, considered\nthat further steps should be taken with a view to ensuring the\ndispensation of adequate relief and to arranging their evacua-\ntion or repatriation where possible.\nThe following recommendations which ACC and AFHQ have\napproved are put forward by Malin to supplement the foregoing:\nOne. Sir Clifford Heathcote Smith, late British Consul\nGeneral at Alexandria, to be appointed as resident representa-\ntive in Italy of IGCON refugees.\nTwo. To work in Italy under Heathcote Smith on the issuance\nof Palestine immigration certificates, the appointment of a\nrepresentative of & Jewish agency which the Government of\nPalestine has approved.\nThree. The authorities of France to be asked to accommo-\ndate some 750 Jewish refugees in a camp established at Fedhala\nby UNRRA.\nFour. The present policy of excluding organizations\nother than British and American from Italy Allied Red Cross\nto be maintained.\nUNSIGNED\nDCR:MPL\n5/5/44\nRegraded Unclassified\n154\nORIGINAL TEXT OF SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmerican Consul, Jerusalen\nDATED:\nApril 20, 1944\nNUMBER:\n86\nCONFIDENTIAL\nThe War Refugee Beard requests that you deliver the\nfellowing message to Chief Babbi Issac Hersegt\nQUOTE. Your radiograms of April 4 and 7 have been\nreceived.\nThe safety of Jewish and other holders of Lating\nAmerican passports in Vittel and other camps has been a\nmatter of deep concern to this Government. It has made\nrepeated efforts to save all these persons. To this end,\nit has approached the governments of Spain, Switserland\nand Latin American countries involved and is mintaining\nconstant communication with Interngovernmental Committee\nand International Red Cress.\nSpecial steps have been taken to save the lives of\n238 persons deported from Vittel.\nThe Board hopes that, as a result of these efforts,\nthe danger threatening these persons will be averted,\nSigned, John W. Pehle, Executive Director, Var Refugee\ncleard. UNQUOTE.\nHULL\nRegraded Unclassified\n155\nCIRCULAR\nCONFIDENTIAL\nApril 20, 1944\n7:35 p.m.\nFOR THE PERSONAL AND CONFIDENTIAL INFORMATION OF THE\nAMBASSADORS AT SAN JOSE, SAN SALVADOR, GUATEMALA,\nTEGUCIGALPA, MANAGUA, QUITO AND ASUNCION.\nWith further reference to the Department's circular airgram\nof January 26, 7 p.m., and to subsequent communications on refugee\nmatters, you are informed that the Department has now authorized\nthe American consular officers in Switzerland to issue up to four\nthousand quota immigration visas to refugee children up to sixteen\nyears of age without regard to religion, nationality or stateless\nstatus, to close relatives residing in enemy, enemy-occupied or\ncontrolled territory, or to the availability of means of transporta-\ntion to the United States. The purpose of this authorisation is to\nfacilitate the escape to Switzerland of orphaned or abandoned\nchildren by giving assurances to the Swise Government that these\nchildren will not remain in Switzerland after the termination of\nhostilities in Europe. The authorisation contains provisions for\nthe continued renewal of the visas until such time as adequate\ntransportation facilities to the United States become available.\nPrivate sources have posted bond with the Attorney General of the\nUnited States to assure this Government that the immigrating children\nwill not become public charges.\nIf there are private agencies in the country to which you are\naccredited, willing and able to undertake a program for the care of\nrefugee children, the War Refugee Board is confident that it can\nmake arrangements to provide these agencies with adequate funds\nfor the maintenance, education and welfare of as many children as\nthe Government of that country would be willing to admit. Should\nit prove necessary, funds would undoubtedly be available to meet\ntransportation expenses from Switzerland to that country.\nKindly approach appropriate officials of the Government to\nwhich you are accredited, inform them of the foregoing and request\nthem to give assurances to the Swiss Government of their willingness\nto accept up to & fixed number of refugee children in a manner\nsimilar to this Government. For the information of the Government\nto which you are accredited, it is conservatively estimated that\nthere are in France alone eight to ten thousand abandoned or orphaned\nrefugee children.\nShould that Government be willing to make this humanitarian\noffer, please request the Ministry of Foreign Affairs to authorise\nits chief of mission in Bern to issue the appropriate number of\nimmigration visas and to maintain their validity until suitable\ntransportation facilities from Switzerland to its country become\navailable. The Government may be informed that the special repre-\nsentative of the War Refugee Board attached to the American Legation\nin Bern will be glad to cooperate with the diplomatic and consular\nRegraded Unclassified\n156\n- 2 -\nofficers of the other American Republics in this as well as in\nall other refugee matters.\nPlease report by telegraph whether this suggestion has been\nfavorably received by the Government to which you are accredited\nand, if so, the number of children it is prepared to admit.\nHULL\nHULL\nSent to: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua,\nEcuador and Paraguay.\nWRB:GLW:KG\nARA\nWE\nVD\nRegraded Unclassified\n157\nA-77\nSECRET\n2:30 PM\nSent by Secret Courier\nAMEMBASSY\nApril 20, 1944\nTEGUCIGALPA (HONDURAS).\nFOR THE PERSONAL AND CONFIDENTIAL ATTENTION OF THE AMBASSADOR.\nRefer our previous communications regarding War Refugee Board.\nReference is made to Department's airgram March 31, 1:05 p.m.\nMinister Harrison at Bern has informed us that the Swiss\nForeign Interests Division has advised him informally that the\nSpanish government had been requested by the Germans to inquire\ninto the bona fides of certain Latin American passports, held by\ninternees in enemy-controlled territory and that the Latin American\ngovernments have denied responsibility as well as any claims of the\npersons holding such passports. Please approach appropriate offi-\ncials of the government to which you are accredited and inquire\nwhether it has received any such inquiries through the government\nof Spain or otherwise from the Germans with respect to the validity\nof passports held by such internees and if such inquiry has been\nmade, please ascertain the nature of the response, if any.\nIn view of the perilous situation in which these internees\nfind themselves, the conclusion has been reached that perhaps the\nonly way of safeguarding the lives of these unfortunate victims of\nNasi persecution is forwith to initiate through proper channels\nnegotiations\nRegraded Unclassified\n158\nTegucigalpa A-77\n- 2 -\nnegotiations for an exchange of nationals for which these people\nwill be eligible. In contemplating such exchange negotiations,\nit is not expected that the government to which you are accredited\nwill physically admit any such persons into its territory even on\na temporary or tentative basis. This Government is prepared to\ntake full responsibility for all arrangements necessary to route\nthese persons to places elsewhere.\nProceeding on this basis, please approach the government to\nwhich you are accredited with the request that it give its approval\nto the Government of the United States approaching the German\ngovernment through appropriate channels with a view to initiating\nsuch negotiations. Please also advise appropriate officials of\nthe government of Honduras that similar requests are being made of\nother Latin American countries, it being the hope of this Government\nthat it will be put in a position to initiate exchange discussions\non & hemispheric basis. Please also advise such officials that in\nany exchange negotiations that may be entered into, it is of course\nunderstood that unquestioned citizens of the United States and of\nthe Latin American countries will be considered by this Government\nas being in a category entitled to priority over others.\nPlease also request the government to which you are accredited\non humanitarian grounds, affirmatively to approach the German\ngovernment through the protecting power with a demand that the\nlives of all persons holding passports issued in its name or claim-\ning its citizenship on the basis of consular documents be safe-\nguarded /\nRegraded Unclassified\n159\nTegucigalpa A-77\n- 3 -\nguarded and that they be given all rights, privileges and immunities\naccorded to civilian internees of enemy nationality to whom the\nGeneva Convention regarding the treatment of prisoners of war is\ncurrently applied by analogy.\nIn view of the imminent danger in which the persons concerned\nfind themselves, you are requested to act with the greatest possible\ndispatch.\nFinally, we communicate to you, for communication to the govern-\nment to which you are accredited, the substance of a cable which the\nDepartment has sent to our Minister at Bern as follows: QUOTE\nAlthough the motives of the Germans in according better treatment to\nJews of Polish origin holding passports and other documents issued\nin the names of Latin American countries are not too clear, it would\nappear that they include (1) some hope that they might be considered\nexchange material against Germans in the Western Hemisphere and (2)\nsome fear that their ill-treatment might afford the Latin American\ncountries a pretext for further limiting the freedom and economic\nactivities of Germans resident in such countries.\nThe measure reported in your 1958 of March 30 may be an\nindication that Germany is beginning to doubt whether such Jews\nare considered exchange material and whether their treatment would\naffect the treatment of Germans in Latin America. This Government\nregards it as essential that these doubts be promptly and effectively\ndisspelled.\nRegraded Unclassified\n160\nTegucigalpa Am77\n- 4 -\nAccordingly, please request the good offices of the Swiss Govern-\nment in informing the Germans that this Government is undertaking\ndiscussions with Latin American countries for & further exchange of\nGermans in the Western Hemisphere for persons in German-controlled\nterritory and that in this connection, the United States considers\nthat all persons in Vittel and elsewhere holding passports and other\ndocuments issued in the names of Latin American countries will be\neligible for such exchange.\nSimultaneously, please request the appropriate Swiss authori-\nties to advise the Germans that in the meantime this Government\nexpects that these persons will be accorded the same rights, privileges\nand immunities that the German government expects will be accorded\nto Germans in the Western Hemisphere. You may add that a consider-\nable number of German civilians interned by various Latin American\ncountries have been placed by such countries in the custody of the\nUnited States and are presently in such custody within continental\nUnited States.\nFor your information, the substance of this message is being\ncommunicated to our Missions in the Latin American countries\nconcerned. We are also making inquiry of such Latin American\ncountries with respect to the authenticity of the information\ninformally conveyed to you by the Swiss Foreign Interests Division\nwhich you referred to in your 1994 of March 31 UNQUOTE\nSPECIAL INSTRUCTIONS TO THE AMBASSADOR.\nYou are instructed to memorize the contents of this airgram,\nburn the document and discuss the matter orally with the government\nRegraded Unclassified\n161\nTegucigalpa Am77\n- 5 -\nto which you are accredited. Such report &8 you submit to the\nDepartment on this cubject should be by secret courier.\nHULL\nWRB:GLW:KG\nARA\nWE\nSWP\n4/19/44\nRegraded Unclassified\n162\nTELEGRAM SENT\nPLAIN\nApril 20, 1944\nAMERICAN CONSULATE\nCASABLANCA\n61, twentieth\nFOR BECKELMAN FROM\n1. British and American Governments have agreed in principle\nto transfer to UNRRA of responsibility for maintenance and\noperation of refugee center at Casablanca.\n2. Plans are to develop as soon 8.8 possible detailed agreement\nas to conditions and date of transfer. UNRRA proposes that\nBritish and American Governments should retain responsibility\nfor transport of refugees to North Africa, UNRRA's primary\nresponsibility being for care and maintenance of refugees after\narrival at North African seaport. Responsibility for finding\nnew places for their eventual settlement will remain unchanged\nby transfer although UNRRA is prepared to assist in repatriation\nof such persons as can and are willing to return to countries of\norigin or of former residence. Expectation is that terms of\ntransfer will also include some understanding as to supply\narrangements as for example possible extension of present agree-\nment with military for furnishing of supplies. Proposed date\nof transfer is some time after U. S. Congress appropriates\nmoney for UNRRA probably in four to six weeks.\n3. Take up with French authorities in Algiers the proposed\ntransfer in order to obtain their consent pursuant to Article I,\nparagraph 2 (a) of the UNRRA agreement, clearing with them also\nas to any discussions which you deem necessary with authorities\nin Morocco. British and American representatives in Algiers are\nbeing instructed to join with you in discussions with French\nwhenever necessary although since French Committee 1s member of\nUNRRA initial approach should be made by you as UNRRA representa-\ntive. We are informally notifying French representatives here\nof the above plans.\n4. Would appreciate your cabled recommendations as to terms to\nbe included in understanding referred to in paragraph 2. Also\ncable results of your talks with French in line with paragraph 3.\nHULL\nForwarded by\n(GHK)\nJGJohnson/fh\nDCR:RLH:ATM\n18 Apr 44\nRegraded Unclassified\n163\nAIR MAIL\nNo. 415.\nLEGATION OF THE\nUNITED STATES OF AMERICA\nLisbon, April 20, 1944.\nSubject: Transmission of Memorandum Prepared by\nDr. Robert C. Dexter, Unitarian Service\nCommittee, Lisbon, in Response to Treasury\nLicense Issued to the Unitarian Service\nCommittee.\nCONFIDENTIAL\nThe Honorable\nThe Secretary of State,\nWashington.\nSir:\nI have the honor to refer to the Department's\ntelegram of April 8, 1944, which states that the Treasury\nDepartment has issued License No. W-2167 to the Unitarian\nService Committee of Boston, Massachusetts, and which\nconveys the substance of the license, and to transmit\nherewith a memorandum prepared by Dr. Robert 0. Dexter\nin response to the telegram. Dr. Dexter, who has been\nEuropean Director of the Unitarian Service Committee,\nwill become Special Attache for Refugee Matters to the\nAmerican Legation, Lisbon, when the position is approved\nby the Portuguese Foreign Office.\nRespectfully yours,\nFor the Minister,\nJames B. Wood,\nFinancial Attache.\nEnclosure:\nMemorandum.\nFile No. 814.4/300\nJEWilr\nRegraded Unclassified\n164\nEnclosure to despatch No. 415\ndated April 20, 1944 from\nAmerican Legation, Lisbon\nMEMORANDUM\nLisbon, April 12, 1944.\nTo: James 2. Wood, Financial Attache,\nAmerican Legation, Lisbon.\nFrom: Dr. Robert C. Dexter, European Director,\nUnitarian Service Committee.\n1) The Unitarian Service Committee appreciates ex-\nceedingly the information contained in the cable dated\nApril 8, 1944 from the Department of State and especially\nthe general attitude contained therein.\n2) As far as remittances from Portugal to France\nare concerned, at the present moment the permission is\npurely academic as no funds have been remitted here speci-\nfically under the terms of the license. It was Dr. Robert C.\nDexter's understanding when he left the United States that\nthe license granted to Portugal was only an alternative\none in case the funds for France could not be sent through\nSwitzerland. It was his further understanding that\n$10,000 was to be sent to Switzerland shortly under &\nsimilar license.\n3) In view of the various complications presented by\nthe license, it is the policy of the Unitarian Service\nCommittee to consult the Financial Attache of the Legation,\nand only to make putchase of francs with his approval. It\nis assumed that such approval would be satisfactory to the\nLegation here and to the State and Treasury Departments in\nWashington.\n4) In case facilities develop rapidly for sending\nmoney into France for purposes mentioned in the license,\nthe Unitarian Service Committee would like advice as to\nwhether funda already in Lisbon, but not specifically allo-\ncated for the purposes envisioned by the license, may be\nused for remittances to enemy occupied territory. Such\nremittances would be made only upon prior approval of the\nFinancial Attache. This question is asked only in order\nto facilitate transmission in an emergency.\nRegraded Unclassified\n165\nCORRECTION\nApril 20, 1944\nBJR\nIn cable from Lisbon 1145 April 18, 11 a.m.\nWar Refugee Board page 2, line 4 insert \"can arrange\"\nafter \"believe\".\nDIVISION OF COMMUNICATIONS AND RECORDS\nCSB\nRegraded Unclassified\n166\nAMT-558\nPLAIN\nLisbon\nDated\nApril 20, 1944\nRec'd\n3:50 p.m.\nSecretary of State,\nWashington.\n1176, Twentieth, 11 a.m.\nFollowing Message is from Joseph Schwartz for War\nRefugee Board and Leavitt, Joint Distribution Committee,\nNew York.\n\"Barlas supplies following figures concerning\nemigration services from Turkey to Palestine from\nDecember 1943 to March 31, 1944. Local Turkish residents\n1084 of whom 194 required assistance. From Bulgaria\n276 including 46 children who arrived in March. From\nHungary 169, from Greece 176, from Rumania 285, which\nincludes 239 SS MILCA passengers who arrived March.\nFinancial statements not yet ready but will advise as\nsoon as pvailable. Thus far Turkish repatriates\narriving from France No. 340 of whom 175 receiving\nassistance which over a period of 6 weeks amounted\n14,000 Turkish pounds. Resnik advises passengers\nboarding both steamships MILCA and MARITZA at Constanza\nwere required to pay fantastic sums.\"\nNORWEB\nRB\nRegraded Unclassified\n167\nLEG-635\nPLAIN\nLisbon\nDated\nApril 20, 1944\nRec'd 6:12 p.m.\nSecretary of State,\nWashington.\n1183, April 20, 6 p.m.\nFollowing telegram number 2 is for War Refugee\nBoard and Rabbi Stephen Wise, President Jewish Congress,\nNew York, from Isaac Weissman.\n\"We enthusiastically welcome nomination Dexter\nrepresentative Mar Refugee Board closest collaboration\nalready established. Considering nature general rescue\nwork Dexter and myself agreed upon closest confidential\ncooperation between Jewish Congress and Board, am there-\nfore giving him information concerning work extensively\ndeveloped by Congress here. Regular groups rescued\norphans now arriving. Fully appreciate promised American\nvisas but since delegate Jewish agency just arrived from\nLondon with visas Palestine should take preference for\nfollowing reasons: First, according Jewish faith orphans\nbelong Jewish Community who in Palestine have created\nspecial institutions adoption and vocational training\nyouth groups; secondly, Palestine community long\nexperienced reception such groups; thirdly, our experience\nshows shildren dispersed foster parents risk being lost\nJudaism. Please intervene immediately with Director\nWar Refugee Board urging him favor Palestine destination\nall children having no relatives USA\".\nNORWEB\nEJH\nRegraded Unclassified\n168\nORIGINAL THE or TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmerican Legation, Born\nDATED:\nApril 20. 1944\nNUMBER:\n1358\nSECRET\nFROM THE WAR REFUGER BOARD TO MINISTER HARRISON.\nThe War Refugee Board requests that you deliver the\nfollowing message to Dr. Gerhart Rigner, Genevat QUOTE\nPlease advise whether you can resume contacts with Willy,\nhis superiors and associates, and ethers exercising similar\nauthority. If this is possible, would appreciate your views\nas to pessibility of arrenging for evacuations from Bungary\nto neutral countries or for holding up deportations or per\nmitting sending relief to those detained. If any sucherrange-\nments possible, please indicate amounts you consider would be\ninvolved and extent to which such amounts could remain in\nneutral countries. Also is Willy reliable. Signed Mahum\nGoldmann, World Jewish Congress. UNQUOTE.\nRegraded Unclassified\n169\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAmerican Legation, Bern\nTO:\nSecretary of State, Washington\nDATED:\nApril 20, 1944\nNUMBER:\n2508\nCONFIDENTIAL\nLegation's cable dated March 6, no. 1366, is referred\nto herewith.\nRegarding test shipments of food parcels to Allied\nNationals in German concentration camps, please see letter\nof September 1, 1943, from James, Special Representative in\nGeneva of American Red Cross to Mitchell, Director of\nInsular and Foreign Operations of American Red Cross.\nHARRISON\nRegraded Unclassified\n170\nPARAPHRASE OF TELEGREM RECEIVED\nFROM:\nThe American Minister, Bern\nTO:\nThe Secretary of State, Washington\nDATE:\nApril 20, 1944\nNUMBER:\n2510\nSECRET\nThe fellowing mesage refere to your number 1269 dated\nApril 13, and to number 1270 also dated April 18, 1944.\nThe Government of Switzerland has been requested by the\nLegation to extend protection to Hager and Wachtel whose cases\nwere mentioned in by number 1994 dated March al until specific>\nally advided to the contrary and similar action will be taken on\ncases of this kind is the future. On April 14 we requested the\nimmediate return to Vittel of two hundred and thirty-eight persons.\nIt is assumed by the Legation that the authority given in\nthe telegram under reference to extend protection to documents-\ntion applicants who are awaiting the decision of the Department\napplies only to such refugee cases and does not alter the cus-\ntomary procedure of withholding protection to ordinary cases\nwhich are refersed to the Department for decision such as cases\nof cooperation in the war effort of the enemy, doubtful leyalty.\nrepatriations first time application, et cetera. In later cases\nthe Legation will continue to request the Swise representative to\nwithhold protection watil the decisions of the Department are -\nceived, unless instructed otherwise.\nHANRISON\nDORAMPL\n4/26/44\nRegraded Unclassified\n171\nCABLE TO AMBASSADOR STEINHARDT, ANKARA, TURKEY FROM WAR REFUGEE BOARD\nThis is WRB cable to Ankara No. 28\nAs previously advised, you should effect in Turkey all Insurance\nrequired by charter for SS TARI except war risk on vessel. As indicated\nin our No. 306 of April 8 war risk on vessel will be placed here through\nWar Shipping Administration. Advise us immediately when TARI is ready to\ndepart in order that war risk insurance can be placed here. This matter\nhas been discussed with Hirschmann who is in complete accord.\nApril 20, 1944\n3:00 p.m.\nJBF:bbk - 4/19/44\nRegraded Unclassified\n172\nTELEGRAM SENT\nThis telegram must be\nApril 20, 1944\nparaphrased before being\ncommunicated to anyone\nmidnight\nother than a Governmental\nagency. (BR)\nRESTRICTED\nAMEMBASSY\nMOSCOW\n978\nFOR THE AMBASSADOR FROM WAR REFUGEE BOARD.\nPlease refer to Department's circular airgram of January 26\nin regard to the establishment of the War Refugee Board, also to\nWar Refugee Board cables nos. 554, March 11, and subsequent tele-\ngram on same subject.\nThe Executive Director of the Board John W. Pehle has informed\nthe Department that in conformity with the President's Order of\nJanuary 22, the Board proposes to appoint Mr. Robert J. Scovell,\nformer representative of the American Red Cross in Russia and new\non the headquarters staff of that organization, as the Special\nRepresentative of the Board with the designation by the Department\nas Special Attache to the Embassy on war refugee matters. The\nPresidential Order provides that the State Department shall appoint\nsuch Special Attaches on the recommendation of the Board, that they\nshall have diplomatic status, and that their duties and responsi-\nbilities shall be defined by the Board in consultation with the\nState Department.\nIt 1s/\n173\n-2-1978, April 20, midnight, to Hoscow.\n- 2 -\nIt is understood that Mr. Scovell is personally known to you.\nIt is assumed that there will be no objection on the part of the\nRussian Government to this designation, although you may in your\ndiscretion approach the Russian authorities informally,i you\nconsider it necessary or advisable to do 80. If Mr. Scovell's\nappointment meets with your approval, please advise us accordingly\nin order that his designation may be made effective at once.\nIf Scovell is appointed we propose to advise him through you\nthat:\n(a) He is charged with the duty and responsibility of carry-\ning out the Board's policies and programs in Russia;\n(b) He is responsible to the Ambassador and should discuss\nhis activities and problems with him regularly and fully;\n(c) The Embassy will provide him with the necessary com-\nmunication facilities in carrying on his official duties;\n(d) He should extend all possible assistance to the Ambassador\nin carrying out instructions contained in the airgram and cable-\ngrams referred to above;\n(\n(e) He should work with and give all possible assistance to\npublic and private agencies operating in Russia in this field\nregardless of whether such organizations are American, foreign\nor international;\n(f) He should develop and assist in the development of pro-\ngrans and implementation of measures for the rescue, transporta-\ntion, maintenance and relief of refugees;\n(g). He should forward to the Board recommendations and frequent\nreports on progress of work and difficulties encountered;\n(h) In so far as the Trading with the enemy Act is concerned,\nthe Secretary of the Treasury has vested in the War Refugee\nBoard and its representatives in the field full authority to\ncommunicate with enemy territory to carry out the purposes of\nthe Order/\nRegraded Unclassified\n174\n-3-1978, April 20, midnight, to Moscow.\n- 3 -\nthe Order. The Secretary of the Treasury has also delegated to\nthe War Refuges Board and its representatives the power to\nauthorize any public or private agencies who may be subject to\nthe provisions of our Trading with the enemy Act to communicate\nwith enemy territory for the purpose of carrying out the Order.\nScovell is authorised to act accordingly upon your confirmation\nof his designation,\nHULL\n(GLW)\nMRB:GLN:KG\n4/20/44\nII\nA-5/3\nS/CR\nRegraded Unclassified\n175\nMJK-652\nRio dE Janeiro\nThis telegram must bE\nparaphrastd before bEing\nDated April 20, 1944\ncommunicated to anyone\nother than a Government\nRec'd 8 p.m.\nAgency. (BR)\nSECRETARY of State,\nDEPARTMENT OF STATE\nWashington.\nIN OF\nAPR 21\n1471, April 20, 6 p.m.\nTRATIONS\n*No RECORDS\nFOR THE SECRETARY OF THE TREASURY FROM THE\nAMBASSADOR.\nI personally transmitted to the Minister of Finance\nyour message in regard to the Joint Statement recom-\nmending the Establishment of an international monetary\nfund. HE was deeply appreciative of your interest in\nthis matter and suggestion of joint action. Finance\nMinister, Souza Costa, asked ME to inform you that hE\nwould have released for publication on April 22 the\nrevised Joint Statement and that hE would at the same\ntime make appropriate comment in regard to Brazil's\ndesire to collaborate in international monetary control\nplans.\nFOR THE DEPARTMENT - The above refer to the Depart-\nment's 1251, April 18, 10 p.m., and 1264, April 20.\nEmbassy is translating final revision Joint Statement\nfor USE Finance Ministry in its public statement.\nCAFFERY\nRB\nRegraded Unclassified\n176\nTELEGRAM SENT\nKEM\nApril 20, 1944\nThis telegram must bE\nparaphrased before being\nMidnight\ncommunicated to anyone\nother than a Government\nagency.. (BR)\nDEPARTMENT OF STATE\nDIVISION OF\nAMEMBASSY,\nAPR 22 1944\nLONDON.\nCOMMUNICATIONS\n3175\nAND RECORDS\nFOR THE AMBASSADOR\nThis is a personal message from the Secretary of\nthe Treasury to the Chancellor of the Exchaquer.\nQUOTE In accordance with the desire of the President\nwhich I communicated to you in our cable no. 2651 WE\nare planning to call a conference beginning the last\nWEEK in May. It is EXPECTED that the President will\ninvite the United and Associated Nations to send\nrepresentatives to a formal financial and monetary\nconference. The chief items on the agenda will bE the\ndrafting of proposals, for the Establishment of an\ninternational monatary fund and an international bank\nfor reconstruction and development.\nThe President has indicated that hE will appoint\nme head\nRegraded Unclassified\n177\n-2- #3175, April 20, midnight, to London.\nme head of the American dalagation and will indicate\nin his letter that he hopes that Each government will\nhave its delegation headed by its chief financial\nofficer. It is contemplated that the delegates will bE\ninstructed by their respective governments to assemble\nfor the purpose of preparing concrete proposals to bE\nformally presented later to the respective governments\nfor their acceptance or non-acceptance.\nIt would bE very helpful to me if I could have\nyour personal views on these contemplated arrangements\nas soon as possible. It is important that there bE no\ndelay, as there is very little time to spare for com-\npleting arrangements. I should like to stress again\nthe urgency of holding the conference before the\npolitical conventions in June. As soon ns I hear from\nyou WE shall bE prepared to discuss with you on an\ninformal basis the calling of a drafting committee to\nbegin work as soon as a conference is officially called.\nEND QUOTE\nHULL\n(DA)\nFMA :EGC:ja\nSA\nRegraded Unclassified\n178\nKEM-598\nLondon\nThis telegram must be\nparaphrased before being\nDated April 20, 1944\ncomminicated to anyone\nother than a Government\nRec'd 5:02 p.m.\nagency. (BR)\nDEPARTMENT OF STATE\nDIVISION OF\nSecretary of State,\nAPR 21 1941\nWashington.\nCOMMUNICATIONS\nAND RECORDS\nUS URGENT\n3253, April 20, 7 p.m. (SECTION ONE).\nDepartment's 3077, April 18, midnight.\nThe following is an urgent message from the\nChancellor of the Exchequer to Secretary Morgenthau:\n\"I thank you for your personal message of April\n18. Arrangements are being made for publication here\non Saturday morning to fit the timing of publication\nin the United States. We are informing the Dominions\nof the agreed changes in the statement but owing to the\ndifficulties of synchronizing our publication with yours,\nI doubt whether it will be possible for any of them to\npublish simultaneously though they may be able to make\nsome announcement. AS for the representatives of the\nEuropean countries who are in England, we shall send them\na copy of what we publish but no question of simultaneous\npublication or announcement by them could arise.\n\"TWO. I note\nRegraded Unclassified\n179\n-2- #3253, April 20, 7 p.m. (SECTION ONE) from London.\n\"Two. I note that you propose to make a general\nstatement on the same lines as that by our Government\nthough not necessarily in identical language.\n\"Three. Owing to other parliamentary business\nalready determined, it is not possible for me to give\nyou a clear indication when contemplated debate will\ntake place. If for any reason it had to be deferred\nfor a considerable period, I could not expect you to\nhold back on that account from any action you might\nwish to take.\n\"Four. If the general reception of the statement\nof principles indicates to your Government that a further\nconference at an early date is desirable, we should try\nto fall in with your plans though I am sure you will\nunderstand that for various reasons both travel and\ncommunications will be vory difficult to arrange.\n\"I think I should make plain to you our conception\nof the nature of the conference that might be held. The\nstatement of principles will have appeared on April 22\nand this will be the first occasion upon which many\ncountries who are important in international commerce\nand whose adherence to the scheme would be necessary\nfor its successful\n180\n-3- #3253, April 20, 7 p.m. (SECTION ONE) from London.\nfor its successful operation will be definitely aware\nof its contents. It is an important statement about\npostwar international cooperation and its important\nissues. My judgment is that a conference at the end\nof May, if indeed it can be arranged at that date, in\nview of the difficulties I have mentioned should be\nsummoned for the purpose of examining the statement of\nprinciples and establishing a detailed text which would\nthen be the subject of formal consideration by govern-\nments so that they could declare their attitude to\nthe scheme as a whole.\nWINANT\nLMS\n181\nKEM-590\nLondon\nThis telegram must be\nparaphrased before being\nDated April 20, 1944\ncommunicated to anyone\nother than a Government\nRec'd 5:02 p.m.\nagency. (BR)\nSecretary of State,\nWashington.\nUS URGENT\n3253, April 20, 7 p.m., (SECTION TWO).\nFive. As regards the Bank for Reconstruction\nand Development, I have received your draft statement\nof principles which you were good enough to send me.\nMeanwhile Mr. Opie will have informed Dr. White of\nour general views on the plans you have published\nand will, I hope, have been in a position to give\nDr. White a memorandum which we had prepared. There\nis no disagreement between us as to the objectives of\nsuch a scheme but as you will have observed, we\napproach it from a rather different standpoint and\nI very much doubt whether it would be practicable for\nus to reach agreement on a joint statement of principles\nwithout a further conference between our respective\nexperts. The conference on the monetary fund might\nprovide the opportunity for this.\n\"In these\nRegraded Unclassified\n182\n-2- #3253, April 20, 7 p.m. (SECTION TWO) from London.\n\"In these circumstances I think your suggestion\nthat you should explain to the Congressional Committee\nthat the statement of principles which you have sent\nme is being released as having the approval of the\nexports of a number of countries is premature and\nmight give rise to misunderstanding. Should it not be\npresented at this stage as representing the views of\nthe technical experts of the United States?\"\nEND OF MESSAGE.)\nWINANT\nLMS\nRegraded Unclassified\n183\nSECRETARY OF OFFICE TREASURY\n1944 APR 21 PM 2 28\nTREASURY DEPARTMENT\nNOT TO BE RE-TRANSMITTED\nCOPY NO. 11\nSECRET\nOPTEL No. 127\nInformation received up to 10 a.m., 20th April, 1944,\n1. NAVAL\nEAST INDIES. 19th. Aircraft from carriers supported\nby Eastern Fleet attacked SABANG (SUMATRA). Wireless installa-\ntions, dockyard, airfield and other targets were hit and large\nfires left burning, including oil fuel cistern. 2 destroyer\nescort vessels set on fire, 2 medium-sized ships hit and 24 air-\ncraft destroyed on ground. Our loss 1 aircraft, pilot safe.\n2. AIR OPERATIONS\nWESTERN FRONT. 18th/19th. 4048 tons were dropped\non Marshalling Yards in FRANCE.\n19th. U.S. heavy bombers attacked targets at KASSEL,\nESCHWEDE, PADERBORN, GUTTERSLOH, LIPPSTADT and WERL dropping a\ntotal of 1284 tons with results generally good to excellent.\nEnemy casualties by fighters 16, 1, 2 for loss of five bombers\nand 2 fighters, Medium and fighter bombers dropped 454 tons on\nCoastal Defences N.E. FRANCE, railway centres at HASSELT, NAMUR\nand MALINES as well as 315 tons on military objectives in\nNorthern France.\n19th/20th. 12 enemy aircraft operated over KENT,\nSUSSEX and SURREY with slight penetration to LONDON area.\nDamage and casualties slight.\n18th/19th. Casualties in LONDON area now reported -\n51 killed and 150 seriously wounded.\nHUNGARY. 16th/17th. Allied bombers dropped 67 tons\non BUDAPEST.\nBULGARIA and RUMANIA. 17th. U.S. heavy bombers\ndropped 426 tons on railway centres SOFIA and 333 tons at SAVA\nnear BELGRADE. Enemy casualties by bombers and fighters 24, 3,\n9.\n17th/18th. Allied bombers dropped 65 tons on\nPLOVDIV Marshalling Yards 80 miles E.S.E. of SOFIA.\nITALY. 18th. Weather restricted bombing. Near\nUDINE fighters scored 6, 2, 5 in combat and 11, 2, 9 on ground\nfor loss of 5 fighters.\nRegraded Unclassified\ncc-Fred Smith\n184\nApril 21, 1944\n9:04 a.m.\nWright\nPatman:\nHello. This 1s Patman, Mr. Secretary.\nHMJr:\nHow are you?\nP:\nFine. I hope you're all right.\nHMJr:\nI just wanted to tell you how I'm looking\nforward to coming down to your meeting.\nP:\nWell, I'm certainly glad of that. And\nwe're looking forward to it, too, Mr.\nSecretary, and we'll do everything in the\nworld to make it a success.\nHMJr:\nWell, I'm sure it will and I think it's a\nfine idea and I'm glad you all want me.\nP:\nYes, sir. And that's the middle of the\nGulf Southwest, you know.\nHMJr:\nI know.\nP:\nAnd, by-the-way, will you give out the\nstatement from here -- from your office?\nHMJr:\nThat I'm going to go?\nP:\nYes.\nHMJr:\nI'll tell them to.\nP:\nAll right. I think that would be better.\nAnd I was talking down there and our friends\nthink that you should invite these Governors,\ntoo. We're going to invite them.\nHMJr:\nI see.\nP:\nAnd if you'll do it, that will just cinch\nthings.\nHMJr:\nWell, I'll talk that over and I don't see\nwhy I can't, seeing it's to be a War Bond\nmeeting.\nP:\nThat's right, War Bond meeting -- and also\ninvite the War Bond Finance Chairman, you\nsee, from each State.\nRegraded Unclassified\n- 2 -\n185\nHMJr:\nFine.\nP:\nI'll furnish Fred Smith the names, if it's all\nright.\nHMJr:\nFred Smith.\nP:\nYeah.\nHMJr:\nThat's the fellow.\nP:\nIs he the one to deal with?\nHMJr:\nYeah.\nP:\nAll right, sir. Well, I'll do that.\nHMJr:\nFine. And thank you for defending my honor\nagain yesterday.\nP:\nAll right. Did you see that in the Record?\nHMJr:\n(Laughs)\nP:\nWell, I'll watch that and I'll be there this\nafternoon.\nis\nHMJr:\nHe's just -- that fellow's crazy.\nP:\nOh, he is crazy. He's just a nut.\nHMJr:\nAnd I don't think the Republicans like him any\nbetter than I do.\nP:\nI don't think so.\nHMJr:\nBut somebody has got to answer him and answer\nhim quickly just the way you did.\nP:\nWell, it should be answered, yes. That speech\ngot a lot of notice, that Mr. O'Connell fixed\nup for me.\nHMJr:\nIt did?\nP:\nOh, yes. It received lots of notice around over\nthe country.\nHMJr:\nWell, I'm delighted.\nRegraded Unclassified\n186\n- 3 -\nP:\nYes, sir.\nHMJr:\nI'm delighted.\nP:\nSay, this afternoon, is there any reason why\nthat should be a secret meeting?\nHMJr:\nAh ....\nP:\nWhat I mean, closed?\nHMJr:\nDo you mean as far as the Press goes?\nP:\nYes.\nHMJr:\nI don't know. You see, what we're worried\nabout is we're not supposed to give anything\nout until eight o'clock tonight and all the\nother countries do it at the same time.\nP:\nWell, why don't you just say that, then, when\nyou come that as far as you are concerned, you\nwouldn't object to it except for that agreement.\nHMJr:\nAll right. I'll talk with Smith about it in\na few minutes.\nP:\nAll right, sir. This fellow -- there's no use\nof yielding to him on account of -- saying it's\na secret meeting and 80 on.\nHMJr:\nOh, no. What I've done, you see, I've run up\nagainst him on this -- what do they call it --\n\"Coinage, Weights and Measures\" --- you see?\nP:\nUh huh.\nHMJr:\nAnd he talks and I've gotten 80 I just don't\nanswer him.\nP:\nWell, he's got some crack-pots around him that\ngets up these questions like Crawford. Crawford\nhas a bunch of crack-pots, too.\nHMJr:\nI see. Well, I just -- I got 80 I just don't\nanswer him.\nP:\nYeah.\nRegraded Unclassified\n- 4 -\n187\nHMJr:\nAnd it makes him wild.\nP:\nYes. Well, you tell the fellows down there to\nwatch things up here and if they want anybody\nanswered for you, to let me know.\nHMJr:\nFine.\nP:\nAll right.\nHMJr:\nThank you.\nP:\nAll right, I sure do thank you, Mr. Secretary,\nand I'm delighted that you're going to be down\nwith us.\nHMJr:\nWell, I'm looking forward to it.\nP:\nWell, thank you very kindly, sir. It pleases\nus very much.\nHMJr:\nBye.\nP:\nBye.\nRegraded Unclassified\n188\nApril 21, 1944\n9:20 a.m.\nTreasury\nOperator:\nThe Secretary is on the wire, operator.\nOverseas\nOperator:\nHello.\nHMJr:\nHello.\nOperator:\nMr. Henry Morgenthau, Jr.?\nHMJr:\nIn person.\nOperator:\nOn the overseas call for Mr. William Averill\nHarriman\nHMJr:\nYes.\nOperator:\nwe're all ready and I'd like to advise you\nin the interest of National security\nHMJr:\nYes.\nOperator:\nyou are requested to refrain from discussing\ndeparture or arrival, name or location of ships....\nHMJr:\nYes.\nOperator:\nmilitary topics of any kind\nHMJr:\nYes.\nOperator:\ntechnical weather information\nHMJr:\nYes.\nOperator:\nor any other information which may aid or\ncomfort the enemy.\nHMJr:\nAll right.\nOperator:\nJust a moment now for Mr. Harriman.\nHMJr:\nThank you.\nForeign\nOperator:\nHello, sir.\nHMJr:\nHello.\nRegraded Unclassified\n189\n- 2 -\nOperator:\nHello, sir.\nHMJr:\nHello. Hello.\nAverill\nHarriman:\nHello.\nHMJr:\nHello.\nH:\nHenry?\nHMJr:\nYes.\nH:\nThis is Averill.\nHMJr:\nGood morning.\nH:\nHave you gotten the cables I sent last night?\nHMJr:\nNo, I have not.\nH:\nDo you mind inquiring at the State Department?\nHMJr:\nI'd love to.\nH:\nThe answer, now, is \"yes\".\nHMJr:\nThe answer, now, is \"yes\"?\nH:\nWith the request not to discuss it until you've\nseen my cables.\nHMJr:\nNow, wait a minute. See if I've got it -- the\nanswer, now, is \"yes\" but I shouldn't discuss\nit until I see your cable?\nH:\nYes, because there are certain aspects about it\nthat you will have to look at before you -- for\nyou to make up your mind about before you ....\nHMJr:\nAverill, we -- you'll have to repeat slowly\nbecause this 18 not too good.\nH:\nI say there are certain statements in connection\nwith this that you will have to\n....\nHMJr:\nThere are certain things in the cable that I\nought to see?\nH:\nHello?\nRegraded Unclassified\n130\n- 3 -\nHMJr:\nHello.\nH:\nI say, my cable gives you a suggestion.\nHMJr:\nAverill, can you hear me?\nH:\nI hear you perfectly.\nHMJr:\nHello?\nH:\nI say, I hear you perfectly.\nHMJr:\nWell, I hear you off and on. I should -- let\nme see if I got this right. There are certain\nthings in the cable that I should see before\nI make any announcement?\nH:\nYes.\nHMJr:\nIs -- hello?\nH:\nHello.\nHMJr:\nWell, I'll get hold of Dean Acheson and tell\nhim to get me the cable right away.\nH:\nYes. And don't do anything until you have read\nthe cable.\nHMJr:\nI will do nothing until I have read the cable.\nH:\nAnd ask Mr. White to get in touch with the\nexperts there.\nHMJr:\nAnd ask White to be in touch with the experts\nin Washington?\nH:\nYes. Ask Mr. White to get in touch with the\nexperts and see if they have heard from their\npeople.\nHMJr:\nI'll do that.\nH:\nI'd appreciate very much being told what your\ndecision 1s.\nHMJr:\nI -- the minute we make one I'll let you know.\nH:\nYes. Okay.\nRegraded Unclassified\n191\n- 4 -\nHMJr:\nThank you 80 much for your help.\nH:\nNot at all.\nHMJr:\nThank you.\nH:\nGood luck to you.\nHMJr:\nBye.\nH:\nBye.\n192\nApril 21, 1944\n9:27 a.m.\nHMJr:\nHello.\nJ. E.\nBrown:\nGood morning, Mr. Secretary.\nHMJr:\nGood morning. I've tried to reach Mr. Acheson\nand I couldn't. Now, Ambassador Harriman just\ncalled me from Moscow.\nB:\nYes.\nHMJr:\nAnd he said there's a very important cable\nthere for me somewhere in the State Department.\nB:\nYes.\nHMJr:\nNow, I'm going up on the Hill with Mr. Acheson\nat a quarter of ten.\nB:\nUh huh.\nHMJr:\nAnd we've been waiting for this answer from\nRussia. Now, is there any way\nB:\nWell, now, Mr. Secretary, he may have sent it\nbut it may not have arrived.\nHMJr:\nWell.\nB:\nYou know with the problem -- it's the old\nproblem of getting telegrams back and forth\nto Moscow with the atmospheric conditions\nHMJr:\nYeah. Well, now, look. Will you do this for\nme? Will you ask whoever is in charge of your\ncode room and 80 forth and 80 on\nB:\nYes.\nHMJr:\nto give this thing priority?\nB:\nI'll be very glad to do that.\nHMJr:\nAnd then the second you've got it, let Mrs.\nKlotz know, herself.\nB:\nYes.\nHMJr:\nShe'll send a Secret Service man over to get it\nand he can rush it up to me on the Hill.\nRegraded Unclassified\n193\n- 2 -\nB:\nFine.\nHMJr:\nSee?\nB:\nI'll be very glad to do that.\nHMJr:\nBut I mean, whatever it is, if there's one from\nHarriman, please give it first priority.\nB:\nYes, indeed.\nHMJr:\nBecause I'm awfully anxious to get it.\nB:\nAll right, sir.\nHMJr:\nBecause he's\n....\nB:\nI'll take care of that right away.\nHMJr:\nHe says the Russians have said \"yes\" with certain\nqualifications.\nB:\nUh huh.\nHMJr:\nNow, if I can tell these four Committees on the\nHill that they've said \"yes\"\n....\nB:\nYes.\nHMJr:\nWould you give it as immediate attention\n....\nB:\nI'll -- I'll do that right away, sir.\nHMJr:\nThank you.\nB:\nFine. Not at all.\nRegraded Unclassified\n194\nApril 21, 1944\n9:35 a.m.\nDEFERMENTS\nPresent: Mr. C.S. Beil\nMr. Jordan\nMrs. Klotz\nMR. BELL: Mr. Jordan doesn't go along with me on\none - Taggart of Procurement. He has only been with us\nfor two months. I warned Cliff that for the future\nnot to take on people that are subject to the draft with-\nout first clearing with us, but I have talked with Mr.\nGaston about this case and we both feel that he should\nbe deferred because of his age.\nMR. JORDAN: He has only been in the Treasury three\nmonths.\nH.M.JR: Oh, he has been in the Government. Oh well,\nthere has to be some incentive to work for the President.\n(The Secretary approves deferment list No. 1, attached)\nMR. BELL: This is Charlie Adams' case. He has\ndeclined a commission in the Navy at Ted Gamble's request.\nTed thinks the sun rises and sets in him. As far as we\nknow he is doing a grand job. Since McNamara has left,\nhe has absorbed practically that entire field of work.\nH.M.JR: He is not on the key list, though.\nMR. BELL: That is true. I am reasonably sure we\ncan get him on the key list.\nMR. JORDAN: The Committee has refused to put adminis-\ntrative positions in the Bureau on the key list.\nRegraded Unclassified\n195\n- 2 -\nMR. BELL: That is true, but this is different.\nThis is a recent reclassification. We have had no oppor-\ntunity to put this on the key list. Actually the man has\nto be an accountant, and if we don't work it one way, we\nwill another.\nH.M.JR: Are we asking three months or six months?\nMR. BELL: In the case of Adams? I think he ought\nto be deferred for six months.\nH.M.JR: It doesn't say here.\nMR. JORDAN: You see, all of our requests go over\nfor six months and they sometimes cut them down.\nH.M.JR: That is all right. (The Secretary signs the\ndeferment application of Charles W. Adams, attached)\nIs that all?\nMR. BELL: Yes, sir.\nRegraded Unclassified\n#\n1\n196\nDEFERMENTS\nApril 19, 1944.\nTitle\nAge\nNo. of children\nINTERNAL REVENUE:\nBeott, Matthew J.\nChief, Employment Tax\n37\n4\nDivision (Arizona)\nSiegle, Sol\nAgent\n34\nNone\nMINT BUREAU:\nNeisser, Philip B.\nAsst. Supt. of Melting and\n33\n1\nRefining (Philadelphia)\nCUREMENT DIVISION:\nTaggart, Maurice J.\nAsst. Chief, Finance Div.\n36\n2\nWeiss, Basil P.\nChief, Lend-Loase Transporta-\n30\n1\ntion and Storage Division\nSUPER'S OFFICE:\nIssace, Hayden B.\nFiscal Accountant\n34\n1\nBAR FINANCE DIVISION:\nHenry, Edgar Cowden\nDeputy Manager (Texas)\n33\n1\nDeferment for the above 7 employees is recommended by the Agency Committee:\np/ Charles S. Bell with\nI approve all of the above cases\nthe exception of request for deforment\nof Maurice J. Taggart:\nJaseph a.Jordan\nApproved:\nAPR 21 1944\n(Signed) H. Morgenthau, Jr.\nSecretary of the Treasury.\nRegraded Unclassified\nII 197\nApril 19, 1944\nThe Committee on Deferments gives approval to the attached\nrequest for the deferment of Mr. Charles W. Adams, Assistant to\nthe National Director, War Finance Division. Mr. Adams is 31\nyears of age, is married and has two children.\nMr. Adams exercises overall administrative control of the\nactivities of the War Finance Division, including the headquarters\noffice in Washington and 156 field offices; coordinates the work\nof the two branches of the organisation (departmental and field);\nmakes executive decisions pertaining to all administrative matters;\nformulates basic policies and carries out the National Director's\ndesires in connection with all aspects of the program. Because of\nMr. Adams' wide experience and training derived in carrying on this\nwork since the inception of the organisation, and his knowledge of\nthe entire program as it relates to both the departmental and field\nservices, the loss of his services would seriously impair the War\nBond activity.\nCharles S. Bell\nacting Chairman\nJaseph a.Jandan.\nApproved: APR 2 1 1944\n(Signed) H. Morgenthau, Jr.\nSecretary of the Treasury\nw\nRegraded Unclassified\n198\nApril 21, 1944\n9:40 a.m.\nAPPEARANCE BEFORE CONGRESSIONAL COMMITTEES\nPresent: Mr. Smith\nMr. Shaeffer\nMrs. Klotz\nH.M.JR: Good morning.\nPatman thinks it will be helpful if the press was\nin this afternoon on account of this fellow White. But\nI don't see how we can let them in this afternoon if we\ndon't let them in this morning. I don't think we will\nlet the press in.\nMR. SMITH: You mean into the sessions?\nH.M.JR: Yes. This is Washington. This is the\nOffice of the Secretary of the Treasury.\nMR. SMITH: I didn't know what you were talking about.\nI am not sure that Rayburn isn't planning, because he said\nsomething yesterday very clearly about this being open\nto the public, and I was going to check up, but there is\nno way to do it.\nH.M.JR: We can check up when we go on the Hill. I\ndon't think it should be.\nMR. SMITH: I don't think it should be this morning\nbecause of the - I don't think you dare have a meeting\nthis morning because they will have it before the Senators\nhave it. I think that is wrong.\nH.M.JR: Well, get organized. I will be ready in &\ncouple of minutes.\nRegraded Unclassified\n199\n- 2 -\nMR. SMITH: There is one word that Mr. Bernstein\nsays is vital that we stick in on Page 16.\nMR. SHAEFFER \"Economic policy\" isn't it? I have\nit in this mimeographed copy.\nMR. SMITH: On Page 16. \"Any other agreements.\"\nH.M.JR: What line?\nMR. SMITH: Second line. u few other agreements\" -\nit should be, \"...few other economic agreements.\"\nH.M.JR: I will be outside in a few minutes.\nAny leaks from last night?\nMR. SHAEFFER: No, sir. Not a line in the paper. The\nThe Journal columnist had a piece quoting Sol Bloom.\nH.M.JR: Do you think I should try to do anything\nwith Pearson about when they saw the Secretary - about a\nstenographer taking notes? He keeps talking about my\nhaving dictaphones all the time.\nMRS. KLOTZ: I wouldn't. If I would say anything to\nhim, I would have him for lunch.\nMR. SHAEFFER: Yes.\nMR. SMITH: I think that will be good, if you could\ntake it. I don't think that is damaging. That is just\nso much noise.\nMRS. KLOTZ: And I would laugh at it.\nMR. SMITH: If you were anybody but the Secretary of\nthe Treasury, it would be alarming, but I am not sure that\nit is such a terribly bad idea for the Secretary of the\nTreasury to be cautious.\nMR. SHAEFFER: It wasn't printed locally.\nRegraded Unclassified\n200\nApril 21, 1944\n12:23 p.m.\nHMJr:\nHello.\nOperator:\nAmbassador Gromyko.\nHMJr:\nHello.\nAmbassador\nGromyko:\nHow do you do, Mr. Secretary?\nHMJr:\nHow are you?\nG:\nThank you. I am all right. How are you today?\nHMJr:\nFine. Well, we had a very good message from\nMr. Harriman.\nG:\nYes, I am familiar with it.\nHMJr:\nYou are familiar?\nG:\nYes.\nHMJr:\nAnd I am very happy about it.\nG:\nUh huh.\nHMJr:\nAnd we've sent an answer through Mr. Harriman\nto Mr. Molotov.\nG:\nUh huh.\nHMJr:\nBut I wanted to, also, send one through you.\nG:\nUh huh.\nHMJr:\nAnd -- telling them how happy I am that I was\nable to tell the Committee this morning\nG:\nI will do\nHMJr:\nthat the Soviet Government was going to\nassociate themselves with us.\nG:\nHe's already advised us.\nHMJr:\nExcuse me?\nG:\nHe has already advised us.\nRegraded Unclassified\n201\n- 2 -\nHMJr:\nI don't understand that.\nG:\nWe have been -- did you receive the full text\nwhich was handed to the Ambassador?\nHMJr:\nI am not sure. The trouble is that the one that\nwas handed to the Ambassador came through to us\nand it was very much \"garbled\".\nG:\nI see. Well, Mr. Secretary, we will transmit to\nyou the very short, very brief text of the --\nwhich was handed to the Ambassador by Mr. Molotov.\nHMJr:\nCould I get that before a quarter of two?\nG:\nBefore a quarter of -- yes, you will get it.\nHMJr:\nAnd I'll be here in my office if he would come\nbut before\nG:\nYes.\nHMJr:\na quarter of two.\nG:\nYes. Because I received it and I am expecting\nthe chauffeur will arrive within several\nminutes to the Embassy and I will give this\ntext to him\nHMJr:\nYes.\nG:\nand will ask him to transmit it to you\nimmediately.\nHMJr:\nHere at the Treasury.\nG:\nAll right.\nHMJr:\nBecause I go back up again to testify before the\nHouse.\nG:\nAll right. The best wishes for you in this\ndifficult work.\nHMJr:\nWell, you'll be interested I was testifying\nand Senator Vandenberg, who 18 you know who\nhe 18.\nG:\n(Laughs) I think I know a little bit.\nRegraded Unclassified\n- 3 -\n202\nHMJr:\nYes. Well, Senator Vandenberg whispered to me.\nHe said, \"Henry, I'm for this plan.\"\nG:\nUh huh.\nHMJr:\nSo that's -- makes it a success in the Senate,\nif he's for it.\nG:\nI see. I see. Well, I am delighted, too, that\nyou and I received such a wire.\nHMJr:\nYes, it gives me a very happy feeling and the\nexperts will -- they'll get together. If we\ncan't do any other way, we'll give them some\nVodka and I'll give them some American Bourbon.\nG:\n(Laughs)\nHMJr:\nAnd we'll make the Russians drink the Bourbon\nand the Americans drink the Vodka and then they'll\nget together.\nG:\n(Laughs) That is right.\nHMJr:\nHow's that? All right. Thank you.\nG:\nThank you for calling.\nHMJr:\nThank you.\nG:\nGood bye.\n203\nApril 21, 1944\nMr. Collado took with him up on the Hill the cable\nwhich the State Department received from Harriman for\nMr. Morgenthau. He delivered it to Mr. Morgenthau at\nthe Committee hearing where Mr. Morgenthau was testifying\nthis morning on the establishment of an International\nMonetary Fund. The hearing was adjourned for a couple of\nminutes while Mr. Morgenthau read the cable, and Bernstein,\nCollado and Smith left the hearing and drafted a reply,\nwhich the Secretary read to the Committee. The reply is\nattached hereto.\n204\nUnited States Senate\nWASHINGTON, D.C.\nWe have just received a message from Moscow\nasseriate theruselves with\nthat the Soviet experts agree with the general\nprinciples of the Koint Statement, and that\nthe Joint Statement will be published in\nMoscow. There are some points of detail on\nwhSch they wish to continue discussion after\nthe principles have been published.\n160%\ney\nStatement of Secretary Morgenthau before Sen.\n205\nComs. on Foreign Relations, Banking and Currency,\nand the Special Committee on Post-War Economic\nPolicy and Planning,\nand before the\nHouse of Representative Coms. on Foreign Affairs\nWays and Means, Banking and Currency, Coinage,\nWeights and Measures, and Special Com. on Post-\nWar Economic Policy and Planning\nFriday, April 21, 1944\n206\nGentlemen:\nI am happy to tell you today that technical\nexperts of the United Nations have agreed upon a set\nof basic principles for an International Monetary\nStabilization Fund. This is a great step forward.\nIt is of greatest importance to all of us who believe\nthat the nations of the world can cooperate in dealing\nwith international economic problems.\nTechnicians representing some of these thirty\nnations have prepared a joint statement of the\nprinciples which are agreed upon. This statement\ndoes not, of course, bind any government to participate\nin the Stabilization Fund, though it does mean that\nthe Fund will be recommended to each of the governments\nas a practical means of meeting post-war monetary\nproblems.\n207\n- 2 -\nI want to call particular attention to some of the\nfacts contained in this joint statement, but before I do\nthat, I should like to review with you some of the\nthings that have happened since I appeared before these\nCommittees on October 5 of last year. At that time, I\ntold you I would like to keep you informed of progress,\nand accordingly I appreciate this opportunity to bring\nyou up to date.\nSince I last talked to you, we have discussed the\nprinciples of the International Stabilization program\nwith bankers, labor representatives and other interested\ngroups in Washington, Chicago, Boston, Philadelphia,\nNew York, and other cities.\n208\n- 3 -\nOut of these meetings came helpful suggestions, many of\nwhich were incorporated in our plans.\nThe vast majority of those with whom we have talked\nare inclined to look favorably upon the principle of\nco-operation to maintain stable and orderly exchange\nrates. Informed opinion seems to point to private\ninvestment on a world-wide basis as vital to post-war\nrecovery and reconstruction; and the stabilization\nof currencies among the United Nations through the\nmedium of an international fund, is generally believed\nto be a necessary prerequisite to this investment.\n209\n- 4 -\nI believe we cannot expect American business men, nor\nbusiness men of any nation, to take major financial\nrisks, immediately upon the heels of a catastrophic\nglobal war, without some assurance that steps have\nbeen taken to prevent their investments from being\njeopardized by unduly fluctuating money values and\nsevere exchange restrictions.\nHaving studied the world picture after the last\nwar, we are all agreed that an effort must be made\nto prevent, insofar as possible, harmful fluctuations\nof currency; and to prohibit deliberate manipulation\nof currencies in an effort to secure unfair competitive\nadvantage in world trade.\n210\n- 5 -\nWhen I was here on October 5, I spoke of a projected\nInternational Bank for Reconstruction and Development.\nBecause discussions on the Bank were initiated\nsomewhat later they are not yet completely finished.\nI can tell you, however, that there is considerable\nsupport for the general principles embodied in the\nWorld Bank, and that good progress has been made.\nThose with whom we have discussed the problem\nof reviving post-war international investment regard\nthe Bank as essential to the expansion of international\ntrade and the maintenance of a high level of business\nactivity.\n211\n- 6 -\nThey believe it necessary to take steps to encourage\nand aid private investors in providing an adequate\nvolume of long-term investment capital for productive\npurposes.\nThe discussions we have had contemplate the\nestablishment of a Bank for Reconstruction and\nDevelopment to facilitate long-term investment capital\nthrough private financial agencies by guaranteeing and\nparticipating in loans made by private investors. The\nBank would also supplement investment of private financial\nagencies, if this becomes necessary, by lending for\nproductive purposes from its own resources when private\ncapital is otherwise not available on reasonable terms.\n212\n- 7 -\nA full statement of recommendations on the\nestablishment of such a Bank, and of the principles\non which such a Bank should be based, is still in\npreparation by technicians. It is my hope that this\nstatement of principles will soon be completed and\nthat it will be issued later. Before it is published,\nI shall fully inform your Committees.\nNow I should like to explain briefly some of the\nbasic principles upon which the technicians are agreed in\nconnection with the International Monetary Fund.\n213\n- 8 -\nHere are the purposes and policies as set forth in\nthe joint statement:\n(1) To promote international monetary cooperation\nthrough a permanent institution which provides\nthe machinery for consultation on international\nmonetary problems.\n(2) To facilitate the expansion and balanced growth\nof international trade and to contribute in\nthis way to the maintenance of a high\nlevel of employment and real income, which\nmust be a primary objective of economic\npolicy.\n214\n- 9 -\n(3) To give confidence to member countries by\nmaking the Fund's resources available to\nthem under adequate safeguards, thus giving\nmembers time to correct maladjustments in\ntheir balance of payments without resorting\nto measures destructive of national or\ninternational prosperity.\n(4) To promote exchange stability, to maintain\norderly exchange arrangements among member\ncountries, and to avoid competitive exchange\ndepreciation.\n215\n- 10 - -\n(5) To assist in the establishment among member\ncountries of multilateral payments facilities\non current transactions, and to aid in the\nelimination of foreign exchange restrictions\nwhich hamper the growth of world trade.\n(6) To shorten the periods and lessen the degree\nof disequilibrium in the international\nbalance of payments of member countries.\n216\n- 11 -\nThe joint statement recommends that all of the\nUnited and Associated Nations subscribe approximately\n$8 billion to the Fund in the form of gold and local\ncurrency. The resources of the Fund would be\navailable under adequate safeguards to help member\ncountries to maintain exchange stability and to\ncorrect maladjustments in their balance of payments.\nMember countries would be able to buy foreign exchange\nfrom the Fund with their own currencies, to the extent\nof their quotas, in order to meet international\npayments consistent with the purposes of the Fund.\n217\n- 12 -\nThe par value of currencies of member countries\nwould be expressed in gold and could be changed only\nat the request of member countries after consultation\nand approval of the Fund. The Fund would approve a\nrequested change in parity only if it were essential\nto correct fundamental disequilibrium. Prompt\nconsideration would be given to requests for necessary\nadjustment of exchange rates. Member countries would\nnot allow their exchange rates to fluctuate outside a\nnarrow range based on the agreed gold parity.\n218\n- 13 -\nVoting power in the Fund would be closely related\nto quotas. A member country could withdraw from the\nFund immediately by giving notice in writing, and\nobligations would be liquidated within a reasonable\ntime.\nDuring the period of transition following the war,\nmember countries would be permitted to retain their\nexchange controls with the expectation that these\nwould gradually be relaxed.\n219\n- 14 -\nI am frank to say that in my opinion the agreement\nof the technical experts to these principles constitutes\na long step on the way toward preventing a breakdown\nof currencies and the imposition and retention of\nrestrictive and discriminatory exchange measures after\nthe war. Through international cooperation now we\ncan assure a stable and orderly pattern of post-war\nexchange rates.\nThe purposes set forth in this Joint Statement\nhave long been the international monetary policies of\nthe United States. For years it has been our objective\nto have these policies adopted by other countries.\n220\n- 15 -\nWe know of no better way of assuring general adherence\nto these policies than through international cooperation\nin an International Monetary Fund.\nWe believe that it is of the greatest importance\nthat all of the United Nations are in agreement on the\nbest means to deal with these international financial\nproblems after the war. This is concrete evidence\nthat the United Nations can and will work together in\nestablishing a peaceful and prosperous world just as\nthey are now fighting together to destroy tyranny and\noppression.\nInternational cooperation on monetary and financial\nmatters is the keystone of successful cooperation on\nall international economic problems.\n221\n- 16 -\nUnless we agree to expand world trade and develop the\neconomic\nworld economy, few other agreements which we might\nmake will or can be effective.\nThe tentative proposals that have been under\ndiscussion by the technical experts are part of a\nprogram for cooperation on international economic problems\namong the United Nations. The objectives of this program\nare the expansion and development of international\ntrade, the restoration of international investment for\nproductive purposes, the maintenance of stable and\norderly exchanges. Through these means, we can\ncontribute to a high level of employment and production.\n222\n- 17 -\nThe establishment of an International Monetary Fund and\na Bank for Reconstruction and Development are important\nsteps in the attainment of the objectives of this\nbroad program.\nI want to emphasize again that the discussions up\nto now have all been of a technical nature and\nexploratory in character. Whatever has been done\nrepresents the views of the technical experts of\nthis country and of other countries that have been\nstudying these questions. The United States is not in\nany way committed until Congress has taken action.\n223\n- 18 -\nIt is my hope that after studying the recommendations\nof the technical experts, the governments of the United\nNations will come to the conclusion that there is\nsufficient basis of agreement at a technical level to\nwarrant the convening of a formal conference.\nI am happy to say that the President has authorized\nme to state that if a conference is held, it is his\nintention to invite direct Congressional participation\nin the work of the United States Delegation.\nFOR RELEASE AFTER 8:00 P.M.,\n224\nFRIDAY, APRIL 21, 1944\nJoint Statement by Experts on the Establishment\nof an International Monetary Fund\nSufficient discussion of the problems of international\nmonetary cooperation has taken place at the technical level\nto justify a statement of principles. It is the consensus\nof opinion of the experts of the United and Associated\nNations who have participated in these discussions that the\nmost practical method of assuring international monetary\ncooperation is through the establishment of an International\nMonetary Fund. The principles set forth below are designed\nto constitute the basis for this Fund. Governments are not\nasked to give final approval to these principles until they\nhave been embodied in the form of definite proposals by the\ndelegates of the United and Associated Nations meeting in A\nformal conference.\nI. Purposes and Policies of the International Monetary Fund.\nThe Fund will be guided in all its decisions by the pur-\nposes and policies set forth below:\n1. To promote international monetary cooperation through\n8 permanent institution which provides the machinery for con-\nsultation on international monetary problems.\n2. To facilitate the expansion and balanced growth of\ninternational trade and to contribute in this way to the\nmaintenance of a high level of employment and real income,\nwhich must be a primary objective of economic policy.\n3. To give confidence to member countries by making\nthe Fund's resources available to them under adequate safe-\nguards, thus giving members time to correct maladjustments\nin their balance of payments without resorting to measures\ndestructive of national or international prosperity.\n4. To promote exchange stability, to maintain orderly\nexchange arrangements among member countries, and to avoid\ncompetitive exchange depreciation.\n5. To assist in the establishment of multilateral pay-\nments facilities on current transactions among member coun-\ntries and in the elimination of foreign exchange restrictions\nwhich hamper the growth of world trade.\n6. To shorten the periods and lessen the degree of dis-\nequilibrium in the international balance of payments of\nmember countries.\nRegraded Unclassified\n225\n- 2 -\nII. Subscription to the Fund.\na.s. A2.5 $1.2 billing\nu.k.\n1. Member countries shall subscribe in gold and in\n3.9\n45'\ntheir local funds amounts (quotas) to be agreed, which will China\namount altogether to about $3 billion if all the United and\nAssociated Nations subscribe to the Fund (corresponding to\nabout $10 billion for the world as a whole).\n2. The quotas may be revised from time to time but\nchanges shall require a four-fifths vote and no member's\nquota may be changed without its assent.\n3. The obligatory gold subscription of a member coun- u.s.\ntry shall be fixed at 25 percent of its subscription (quota) million $625\nor 10 percent of its holdings of gold and gold-convertible\nexchange, whichever is the smaller.\nIII. Transactions with the Fund.\n1. Member countries shall deal with the Fund only\nthrough their Treasury, Central Bank, Stabilization Fund,\nor other fiscal agencies. The Fund's account in a member's\ncurrency shall be kept at the Central Bank of the member\ncountry.\n2. A member shall be entitled to buy another member's\ncurrency from the Fund in exchange for its own currency on\nthe following conditions:\n(a) The member represents that the currency de-\nmanded is presently needed for making pay-\nments in that currency which are consistent\nwith the purposes of the Fund.\n(b) The Fund has not given notice that its holdings\nof the currency demanded have become scarce in\nwhich case the provisions of VI, below, come\ninto force.\n(c) The Fund's total holdings of the currency\noffered (after having been restored, if below\nthat figure, to 75 percent of the member's\nquota) have not been increased by more than take Quota more will\n25 percent of the member's quota during the than\n+ years\nprevious twelve months and do not exceed\nde ex X and you\n200 percent of the quota.\nany country\nRegraded Unclassified\n226\n- 3 -\n(d) The Fund has not previously given appropriate\nnotice that the member is suspended from\nmaking further use of the Fund's resources\non the ground that it is using them in a\nmanner contrary to the purposes and policies\nof the Fund; but the Fund shall not give such\nnotice until it has presented to the member\nconcerned a report setting forth its views\nand has allowed a suitable time for reply.\nThe Fund may in its discretion and on terms which safe-\nguard its interests waive any of the conditions above.\n3. The operations on the Fund's account will be limited\nto transactions for the purpose of supplying a member coun-\ntry on the member's initiative with another member's currency\nin exchange for its own currency or for gold. Transactions this\nprovided for under 4 and 7, below, are not subject to\nlimitation.\n4. The Fund will be entitled at its option, with a\nview to preventing a particular member's currency from be-\ncoming scarce:\n(a) To borrow its currency from a member country;\n(b) To offer gold to a member country in exchange\nfor its currency.\nanother member's currency from the Fund in exchange for its\n5. So long as a member country is entitled to buy\nown currency, it shall be prepared to buy its own currency\nfrom that member with that member's currency or with gold.\nThis shall not apply to currency subject to restrictions in\nhave accumulated as 8 r^sult of transactions of a current\nconformity with IX, 3 below, or to boldings of currency which\naccount nature effected before the removal by the member\ncountry of restrictions on multilateral clearing maintained\nor imposed under X, 2 below.\n6. A member country desiring to obtain, directly or\nindirectly, the currency of another member country for gold\nThis shall not preclude the sale of nowly-mined gold by &\nto acquire the currency by the sale of gold to the Fund.\nis expected, provided that it can do so with equal advantage,\ngold-producing country on any market.\n7. The Fund may also acquire gold from member countries\nin accordance with the following provisions:\n(a) A member country may repurchase from the Fund\nfor gold any part of the latter's holdings of\nits currency.\nRegraded Unclassified\n- 4 -\n227\nsay payments(b) (b)\nSo long as a member's holdings of gold and gold-\nconvertible exchange exceed its quota, the Fund\nmust be me we\nin selling foreign exchange to that country shall\ngood if country\nrequire that one-half of the net sales of such\nhas more\nto guova.\nexchange during the Fund's financial year be\npaid for with gold.\n(c) If at the end of the Fund's financial year a\nmember's holdings of gold and gold-convertible\nmy must\nthe increasin\nexchange have increased, the Fund may require\nhas dings to\nup to one-half of the increase to be used to\ncharp local\nrepurchase part of the Fund's holdings of its\ncurrency so long 88 this does not reduce the\nnency from\nJund.\nFund's holdings of a country's currency below\n75 percent of its quota or the member's hold-\nings of gold and gold-convertible exchange\nbelow its quota.\nIV. Par Values of Member Currencies.\n1. The par value of a member's currency shall be agreed\nwith the Fund when it is admitted to membership, and shall be\nd\nexpressed in terms of gold. All transactions between the Fund\neld.\nand members shall be at par, subject to a fixed charge payable\nby the member making application to the Fund, and all transac-\ntions in member currencies shall be at rates within an agreed\npercentage of parity.\n2. Subject to 5, below, no change in the per value of 8\nmember's currency shall be made by the Fund without the coun-\ntry's approval. Member countries agree not to propose a\nchange in the parity of their currency unless they consider\nit appropriate to the correction of a fundamental disequi-\nlibrium. Changes shall be made only with the approval of the\nFund, subject to the provisions below.\n3. The Fund shall approve a requested change in the par\nvalue of 8. mamber's currency, if it is essential to the correc-\ntion of A fundamental disequilibrium. In particular, the Fund\nshall not reject a requested change, necessary to restore\nequilibrium, because of the domestic social or political pol-\nicies of the country applying for a change. In considering\n& requested change, the Fund shall take into consideration\nthe extreme uncertainties prevailing at the time the parities\nof the currencies of the member countries were initially\nagreed upon.\n4. After consulting the Fund, a member country may\nchange the established parity of its currency, provided the\nproposed change, inclusive of any previous change since the\nestablishment of the Fund, does not exceed 10 percent. In\nthe case of application for 8 further change, not covered by\nRegraded Unclassified\n228\n- 5 -\nthe above and not exceeding 10 percent, the Fund shall give\nits decision within two days of receiving the application,\nif the applicant so requests.\n5. An agreed uniform change may be made in the gold\nvalue of member currencies, provided every member country\nhaving 10 percent or more of the aggregate quotas approves.\nV. Capital Transactions.\n1. A member country may not use the Fund's resources\nto meet a large or sustained outflow of capital, and the\nFund may require a member country to exercise controls to\nvision is not intended to prevent the use of the Fund's\nprevent such use of the resources of the Fund. This pro-\nresources for capital transactions of reasonable amount re-\nquired for the expansion of exports or in the ordinary\ncourse of trade, banking or other business. Nor is it in-\ntended to prevent capital movements which are met out of a\nmember country's own resources of gold and foreign exchange,\nprovided such capital movements are in accordance with the\npurposes of the Fund.\n2. Subject to VI below, 8 member country may not us 3\nits control of capital movements to restrict payments for\ncurrent transactions or to delay unduly the transfer of\nfunds in settlement of commitments.\nVI. Apportionment of Scarce Currencies.\n1. When it becomes evident to the Fund that the demand\nfor a member country's currency may soon exhaust the Fund's\nholdings of that currency, the Fund shall so inform member\ncountries and propose an equitable method of apportioning\nthe scarce currency. \"Then & currency is thus declared\nof the scarcity and containing recommendations designed to\nscarce, the Fund shall issue a report embodying the causes\nbring it to an end.\n2. A decision by the Fund to apportion a scarce cur-\nrency shall operate as an authorization to a member country,\nafter consultation with the Fund, temporarily to restrict\nthe freedom of exchange operations in the affected currency,\nrationing the limited supply among its nationals, the member\nand in determining the manner of restricfing the demand and\ncountry shall have complete jurisdiction.\nVII. Management.\n1. The Fund shall be governed by & board on which each\nmember will be represented and by an executive committee.\nThe executive committee shall consist of at least nine mem-\nbors including the representatives of the five countries\nwith the largest quotas.\nRegraded Unclassified\n229\n. 6 -\nvadeo\n2. The distribution of voting power on the board and\nthe executive committee shall be closely related to the\nquotas.\nR.\nspc.\n5p.e.\n3. Subject to II, 2 and IV, 5, all matters shall be\nsettled by A majority of the votes.\n4. The Fund shall publish at short intervals a state-\nment of its position showing the extent of its holdings of\nmember currencies and of gold and its transactions in gold.\nVIII. Withdrawal.\n1. A member country may withdraw from the Fund by giv-\ning notice in writing.\n2. The reciprocal obligations of the Fund and the\ncountry are to be liquidated within 8 reasonable time.\n3. After a member country has given notice in writing\nof its withdrawal from the Fund, the Fund may not dispose\nof its holdings of the country's currency except in accord-\nance with t' e arrangements made under 2, above. After a\ncountry has given notice of withdrawal, its use of the\nresources of the Fund is subject to the approval of the Fund.\nIX. The Obligations of Member Countries.\n1. Not to buy gold at a price which exceeds the agreed\nparity of its ourrency by more than 8 prescribed margin and\nnot to sell gold at & price which falls below the agreed\nparity by more than B. prescribed margin.\n2. Not to allow exchange transactions in its market\nin currencies of other members at rates outside a prescribed\nrange based on the agreed parities.\n3. Not to impose restrictions on payments for current\ninternational transactions with other member countries (other\nthan those involving capital transfors or in accordance with\nVI, above) or to engage in any discriminatory currency\narrangements or multiple currency practices ithout the\napproval of the Fund.\nX. Transitional Arrangements,\n1. Since the Fund is not intended to provide facilities\nfor relief or reconstruction or to deal with international\nindebtedness arising out of the war, the agreement of &\nmember country to provisions III, 5 and IX, 3 above, shall\nments at its disposal to facilitate the sottlement of the\nnot become operative until it is satisfied AB to the arrange-\nRegraded Unclassified\n230\n- 7 -\nbalance of payments differences during the early post-war\ntransition period by means which will not unduly encumber\nits facilities with the Fund.\n2. During this transition period member countries may\nmaintain and adapt to changing circumstances exchange regula-\ntions of the character which have been in operation during\nthe war, but they shall undertake to withdraw as soon 88\npossible by progressive stages any restrictions which im-\npede multilateral clearing on current account. In their\nexchange policy they shall pay continuous regard to the\nprinciples and objectives of the Fund; and they shall take\nall possible measures to develop commercial and financial\nrelations with other member countries which will facilitate\ninternational payments and the maintenance of exchange\nstability.\n3. The Fund may make representations to any member\nthat conditions are favorable to withdrawal of particular\nrestrictions or for the general abandonment of the restric-\ntions inconsistent with IX, 3 above. Not later than three\nyears after coming into force of the Fund any member still\nretaining any restrictions inconsistent with IX, 3 shall\nconsult with the Fund as to their further retention.\n4. In its relations with member countries, the Fund\nshall recognize that the transition period is one of change\nand adjustment, and in deciding on its attitude to any pro-\nposals presented by members it shall give the member country\nthe benefit of any reasonable doubt.\n231\nTransmitted by Secret Service Agent Slye\nat 4:20\nSent to Mr. Latta's Office\nTo be sent by pouch.\nCopy of telegram # 1380 from\nMosson imbred.\n232\nApril 21, 1944\nMy dear Mr. President:\nI thought you would like to know some of the things\nthat have been happening behind the scenes in connection\nwith our testifying before the Senate and House Commit-\ntees.\nOnly by telling the English that I would go up and\ntestify whether I heard from them or not were we finally\nable to get an agreement out of them to go along with\nthe principles involved. The Russians also have been\nstalling us, and yesterday I called up both Harriman\nin Moscow and Ambassador Gromyko here to put all the\npressure I could on them to get the Russians to come\nalong. I never got an answer from the Russians until\nI was in the middle of my testimony before the four\nCommittees in the Senate this morning. You will find\nthe message attached to this letter. I thought you\nwould be most pleased that the Soviet Government de-\ncided to go along with us \"to secure due effect in the\nrest of the world\". In other words, they want to be\nassociated with us in the eyes of the world. State and\nTreasury both think this is highly significant, as I\nam sure you will also.\nBefore leaving the hearing in the Senate, Senator\nVandenberg whispered to me that he would support this\nprogram. The fact that I was able to tell the Senate\nthat you would appoint members of Congress to the\nAmerican Delegation made a great hit.\nI an dictating this letter between hearings, so I\ndo not know how I will be received in the House this\nafternoon, or what kind of publicity we will get in the\nmorning papers, but I am hoping for the best.\nRegraded Unclassified\n233\n- 2 -\nI was 80 happy to learn that both Jimmy and Franklin\nreceived highly deserved promotions, and may I extend my\ncongratulations to you as their father.\nWith warm regards,\nSincerely yours,\n(Signed) Henry\nThe President,\nThe White House.\n234\nMEMORANDUM FOR THE SECRETARY.\nApril 21, 1944.\nMail Report\nAlthough this week's mail was heavier than\nthat of last week, no new subject appeared. Bond\nmatters accounted for roughly 70%; the other 30% of\nthe week's receipts concerning taxes, checks, cur-\nrency, and now and then 8. Foreign Fund problem.\nThe Fifth Drive continued to figure prominently\nin the mail. Our correspondents submitted slogans,\nsongs, and poems; offered personal services; and out-\nlined possible drawbacks that might be overcome by\npreliminary planning. Several writers wanted new\ntypes of bonds, especially small ones. Many asked\nthat the $5,000 limit be raised 50 that quotas may be\nreached more easily by sale of E Bonds during the\nnext Drive.\nWhile there were again very few complaints about\ndelays in receiving bonds, there were 20 reports of\noverdue interest. The 67 bonds submitted for redemp-\ntion through this office represent an average for\nrecent weeks.\nRequests for tax refunds, some of them pathet-\nically urgent, rose sharply. Evidently this is going\nto be a sore spot in Treasury relations with the public,\nparticularly the new taxpayers. There were few addi-\ntional requests for simplification of forms, and per-\nhaps a dozen appeals for reconsideration of deduction\nof charitable donations in the proposed Withholding\nAct. Occasionally a letter would point out that be-\ncause of present rates, the manpower shortage is made\nworse inasmuch as workers refuse to put in overtime,\nonly to have their wage gains nullified by the taxes\nthat are imposed.\nPublicity about the decline in U. S. gold holdings\nprompted several inquiries. A number of these letters\nwere submitted by Senators and Congressmen.\nGabrice Fortush\n235\nGeneral Comments\nMrs. George V. Linden, Dallas, Texas, wrote to the\nPresident, enclosing a letter from her husband, who is\n& Corporal in the Army in Africa. The correspondence\nwas referred to the Treasury for handling, and the\nletter from Corporal Linden reads in part as follows:\nIf\nSo the fellows at your office have heard\nabout the money being made on the exchange of currency.\nYes, some of the boys have made quite 8. nest egg for\nthemselves by this method. It works this way: The\nAmerican value of the franc, for instance, is $.02,\nbut the franc may be purchased on the black market for\n$.01. Accordingly, on the exchange of a black market\nfranc one would make 100% profit. You can imagine how\nmuch one could accumulate by this method. The biggest\nsteal though is accomplished on the exchange of Chinese\ncurrency. An American dollar can be exchanged for 120\nChinese dollars on the black market, and these black\nmarket dollars can then be converted back to American\ndollars via draft at 40 Chinese dollars for 1 American\ndollar, a neat profit of 200%, i.e. 3 for 1. For every\nwinner there must be a loser, and the loser in these\nsteals is the U. S. Government, for both the franc and\nthe Chinese dollar are babies of the U. S. Treasury.\nMaybe it is smart like the lads told you, but it does\nseem strange for Americans to fight for their country\nwith their hands and their hearts while kicking her in\nthe stomach with their feet. Your own husband may be\noverconscientious, but after working in the Internal\nRevenue for 80 many years, I instinctively yearn to pro-\ntect the Government's interest. The War Department,\nhowever, has issued regulations prohibiting a member of\nthe Armed Forces to use his position for personal gain\nvia the franc black market route, but as far as I know,\nthe Chinese swindle racket is still in vogue.\n236\n- 2 -\nNorman Somers, Binghamton, N.Y. I think that you are\ndoing a tremendous job very well. I know that you\nmust be very busy steering our country through this\ncrucial period, but I thought I'd write to you and add\n& bit of encouragement. Perhaps you face as many\nproblems as Alexander Hamilton, and I am sure you will\ntake care of them as well as he. # # I am 15 years\nold and am in the 9th grade. I heard a man on the\nradio the other day who told about those filthy counter-\nfeiters. We have 80 many opportunities in the United\nStates today, and yet those people have to try to make\nmoney the easy way. They should be out working in war\nplants, helping our war effort in 8. nice clean way in-\nstead of sneakily turning out ersatz bills. Keep up\nthe good work, Mr. Morgenthau.\nDr. Herman Sharlit, New York City. My converted war\nrisk insurance of World War I will become completely\npaid up next year. It has occurred to me that our\nGovernment should consider offering holders of such\nmatured policies annuities on the surrendez of the said\npolicies. The annuity return, beginning at the age\nwhich insurance practices make feasible, should be\nbased not alone on the cash surrender value of the\npolicy, but should include old age and war veteran\nbenefits which would ultimately accrue to war veterans.\n# To the extent to which war veterans may be encouraged\nto convert and maintain their policies to maturity,\nsuch a proposal as herein suggested should go a long\nway towards automatically solving the veterans' pen-\nsion problem. Naturally, should such an offer be put\ninto effect, those accepting annuities would be ex-\ncluded from any veterans' pensions that would ulti-\nmately be voted. The adjusted service bonds of World\nWar I, which reach maturity in June, 1945, also merit\nconsideration at this time. I trust that simple\nmachinery will be set up for exchanging those bonds\nfor some series next year. It is inconceivable that\nthose of us who overcame the temptation these many\nyears to cash them, would seek to redeem them next\nyear. ***\n237\n- 3 -\nAnna Laslo, Washington, D. C. I take the liberty of\napproaching you in this rather unusual way, but\nI can't think of any other means by which I would be\nable to help the cause of the European Refugees,\nwhich cause is the dearest to my heart. I have no\ncash on hand which I could offer to aid this most\nworthy cause, but I have some 100 dollars in the U. S.\nRetirement Fund, which accumulated during my employ-\nment with the U. S. Government from the 18th of June\n1942 to the end of August 1943. I would like to contri-\nbute this sum toward the fund of the European Refugee\nBoard. I sincerely hope that I'm not imposing on\nyou too much when I'm pleading with you to kindly use\nyour good influence to get that money paid out to you\nas soon as possible, and then please use it toward the\nfund of the European Refugee Board. I would consider\nit & privilege if you would kindly accept this little\ncontribution from me.\n###\nSenator Arthur Capper sends the following letter he\nhas received from Mark D. Mitchell, Independence, Kan.\nHenry Taylor has broadcast over the radio the news\nthat we are printing enormous quantities of money to\ntake care of military currency, and shipping it to\nforeign countries; that gold is being taken out of the\nDepository at Fort Knox, Kentucky, and shipped to\nforeign countries like China, India and Arabia for the\nalleged purpose of stabilizing the currency of these\nnations. It seems that these shipments of currency\nprinted in the United States is a contingent liability\nof the Federal Government, and that no systematic entry\nhas apparently been made covering this liability, and\nthat it seems to me a thorough investigation of this\nprocedure on the part of Congress is a necessary thing\nin order to protect the stability of our currency here\nat home, as well as to protect the War Bonds which we\nhave bought, and protect the value of our life insurance\npolicies.\n238\n- 4 -\nFavorable Comments on Bonds\nW. C. Rogers, Arkansas Senate, Nashville, Arkansas.\nFor two or three days in succession, I have heard\nthe Commercial Bank, of Shreveport, Louisiana, in\ntheir advertising broadcasts, refer to their facil-\nities for assisting those who have been patriotic\nenough to buy bonds. I may be mistaken, but this\nseems to me to be demoralizing to the legitimate sale\nof bonds in that it will give the average a thought\nthat he can get rid of his bonds any time after sixty\ndays. I think this fact, though true, should always\nbe soft-pedaled in selling War Bonds. I believe 8.\nnote to that bank in your official capacity will be\nall that is necessary. My best wishes, Mr. Morgenthau.\nYou are doing 8. wonderful job and doing it well.\n239\n- 5 -\nUnfavorable Comments on Bonds\nJ. L. Shepherd, Milan, Missouri.\n***A\nman and\nhis wife, who were on Old Age Assistance roll, owned\neighty acres of land without any improvements. Last\nMay they sold same with the idea of buying 8. small\npiece of property 8.8 a home. After paying some debts,\nthey had around $700 left in the bank. # # * When the\nBond Drive came along, they were prevailed upon to\nput this money in War Bonds until such time as they\ncould buy a home. They did not do this until they\nconsulted the cashier of the bank, who was County\nChairman of the Bond Drive, as to whether they could\nget the money back when needed, as it takes a little\ntime, as you know, to cash these bonds. He informed\nthem that he would take care of them as soon as they\nbought property, without having to wait to cash the\nbonds. They then bought bonds with this money amount-\ning to $625. Then along comes the investigator of the\nO.A.A. and suspends them from Old Age Assistance because\nthey have these bonds; in other words, penalizing them\nfor letting the Government have the use of their money\nuntil such time as they could find a home to buy.\nI have talked with the cashier of the bank (who has\nbeen very active in the Bond Drives) and he agrees that\nif this action is not challenged, it is going to hurt\nthe bond effort in this County, and if it is the policy\nof the O.A.A. Commission of Missouri, it will hurt the\nState Bond effort. Looks like a case of bond sabotage,\npure and simple.\nJames V. B. Post, West Orange, N. J. # Evidently\nthe Treasury Department in Washington, and others, have\nnot been informed of this paper shortage as we have just\nbeen the recipient of a citation from the Treasury for\nservices rendered on behalf of the last War Loan Drive.\nMost of the people I have spoken to, who assisted in\nthe last Drive, felt it their duty to assist in whatever\nRegraded Unclassified\n240\n- 6 -\nmanner they could, but they did not expect to receive\nany citations for doing this work. The one I received\nis only one of millions sent out from Washington, and\nI have seen other citations four or five times bigger\nthan this one, which have been given, as near as\nI can make out, to practically anyone working in a\nwar plant. Besides using critical paper, I know very\nwell that it took at least the services of several\nhundred people, or more, to design and print these\ncitations, plus the thousands of stenographers re-\nquired to address the envelopes. The cost of doing\nall this work just at a. time when the country cer-\ntainly should be economizing as much as possible,\nruns up to a mere one hundred million dollars or more.\nWe feel that this is all 80 unnecessary with the short-\nage of manpower and everything else. ***\nE. J. Connor, Connor Company - - Wholesale Plumbing and\nHeating Supplies, Peoria, Illinois. The writer has\nbeen offered and his services have been accepted to\ndo more or less 100% work for a few months in connec-\ntion with the next bond campaign. # In discussing\nthe failure of many Illinois rural counties to come\neven close to their quotas, 8. banker told me these\nfacts. Farmers are not using the banks either in de-\npositing their receipts and transactions. Neither are\nthey using safety deposit boxes. All of their deals\nare now selling for cash, and paying the same way.\nThey don't put the money in the bank, as thereby they\nhave records, and income tax auditors cannot check\nthem, and they want to forget and have no records.\n*** They don't want to and don't do their share of\nbond buying. #** Labor and business pay their share\nof taxes and buy bonds, because they can't do other-\nwise, perhaps, but results are the same. I know the\nfarmers - my business is indirectly with them. Also\nown some farms. Farmers are exceedingly prosperous and\nshould do their share, but are not. # * But farmers\nshould be scared, that would be much better selling\nargument than logic or patriotism.\n241\n- 7 -\nRobert E. Ausenbaugh, Evansville, Ind. There is a\nproblem existing at the Evansville shipyard - contrac-\ntors Missouri Valley Bridge and Iron Company - con-\ncerning the payroll bond deductions. It has been bad\nall along, and is growing worse all the time. Employees\nhave from 4 to 5 bonds due them all the time before\nthey receive perhaps 1 in 1 month. The thing is\ngetting worse, and if not corrected, the employees\nare going to stop the payroll plan. As for myself,\nI am sure we will get the bonds due us, sometime, and\nwould buy all the bonds I can afford anyway. But lots\nof employees, less interested in bond buying than I am,\nare almost ready to quit on this account, and lots of\nthem would not buy bonds otherwise. ***\n242\n- 8 -\nUnfavorable Comments on Taxation\nG. E. Avery, Wethersfield, Conn. In December 1942\nI bought & few United States Treasury Notes, Tax\nSeries A, for the purpose of paying future income\ntax obligations to the Government. Since then, the\nwithholding tax law has been passed, and I cannot\nuse the two that I have left for such purpose, as\nthe balance of my tax due each year is less than the\nface value of the notes. Will you advise me as to\nwhat to do with these notes, and if presented for\nredemption will I lose the accrued interest, and thus\nbe penalized for trying to cooperate with the Govern-\nment? This same letter was sent to the local Collec-\ntor of Internal Revenue on February 7th, to which\nI have had no reply.\nLouis L. Baere, Peerless Fibre Company, Cohoes, N.Y.\nThe currently existing high tax rates are having a\nstrange repercussion on the manpower situation in\nour country today. Due to the rates, a good many of\nthe working people feel that taxes take the bulk of\ntheir overtime wage from them 80 that, as a result,\nnumbers of men and women alike have refused to work\nadditional hours. This situation has held true in\nmy own plant here and also prevails in 8. good many\nplants throughout the country, according to my con-\nversations with other mill owners. It has occurred\nto the writer that the Treasury Department should\nendeavor, both in the interests of realizing greater\ntaxes and at the same time promoting maximum use of\nour manpower, to put out some publicity in order to\nameliorate this situation. ***\nA. E. Hotson, Shreveport, La. On my attempting to\nfile Form 1040-ES with the local office of the Bureau\nof Internal Revenue, Shreveport, La., as required,\nI was refused & receipt in any form. In view of the\nease with which slips of paper can be mislaid, wrongly\nRegraded Unclassified\n243\n- 9 -\nfiled or destroyed, I believe my request was\nreasonable, and that no honest person, whether\nFederal employee or otherwise, would or should re-\nfuse a receipt when cash or important papers are\ntendered. Kindly advise if instructions covering\nissuance of receipts have or will be issued from\nyour office.\nPalmer Conger, Philadelphia, Pa. Will you please\ngive me the information about my returned tax money\nwhich the Government owes me? For I have overpaid\nmy taxes for 1943, the amount is $69.21 which I was\ntold in February 1944 that the Government would give\nme this money back in a month or six weeks. I have\nnot received this money yet and I would like to know\nwhen I will get it. I need this money now to help\npay my rent, and to carry me till I get a payday.\nI would be very grateful if you can send me the\n$69.21 as soon as you can. Thanking you kindly.\nCopy of letter written by Ray Alvis, McAllen, Texas,\nto Frank Scofield, Collector of Internal Revenue,\nAustin, Texas. I have your letter of March 20th say-\ning that you had received my protest dated January\n25th, but that I should have sent it to Dallas. Now\non April 7th you sign a letter saying that I failed\nto file a protest. The cheapest and easiest thing\nthat I can do is to pay you your $28.00 that I do not\nowe you, and at least be rid of you for the moment.\nIt is the principal of extortion involved. Being\ndogged to exasperation. I spent a great deal of time\nwith your field investigator. Offered to furnish\nproof of any entries that he might question. When\nhe was making out his so-called \"exhibit\", I insisted\nthat he was duplicating figures and that it was in-\ncorrect. He didn't want the facts though - he just\nwanted to make all the trouble that he could. You\nsuggest that I go to the Tax Court in Washington.\nIf gas is available later in the year, I will most\nRegraded Unclassified\n244\n- 10 -\ncertainly do it. Travelling conditions are too diffi-\ncult now. I would like to see my Senator, Congressman\nand Mr. Morgenthau in person. Go ahead and carry\nyour illegal and dishonest claim to court. I flatly\nrefuse to pay you more than the law requires. If\nI have to, I would prefer to spend the rest of my\ntime in Alcatraz than be hounded to death.\nAlex Rexion, Department of Cooperative Work, Fenn\nCollege, Cleveland, Ohio. On the income tax documents\nthat we citizens must file we are continually reminded\nthat we shall be penalized unless we do this or that\non time, and in other ways dictated to by the Govern-\nment. All of that is, I suppose, as it should be.\nBut would it not be good if the Government itself\npracticed what it preaches? For instance, I overpaid\nmy income tax last year, and requested that the Govern-\nment refund me the sum I paid beyond that which was\nrequired by the Government. Nearly 40 days have\npassed since I filed my annual return, and as yet\nI have not received the money I have coming. I have\nmore than $100 coming, and this would serve me well\nnow instead of later in the year. The rumor is going\nthe rounds that it is foolish for us to expect any\nrefund from the Government. How true is this rumor?\nM. E. Peterson, Principal, Winnetka School, Canoga Park,\nCalifornia. Again I must protest at the excessive\ntaxation on my salary. This time the particular pro-\ntest is because I have been forced to pay far in excess\nof my actual tax. On my last return, March 15th, the\nGovernment owed me $96.00 which I have been promised\nas a refund. However, over the radio 8. few nights ago\nWe were told that such refunds might not come to us\nfor 8. year because \"The Government simply hasn't got\nit\". In making up my tax estimate I find that the\nGovernment, according to the present rate of with-\nholding, will owe me $76.00; and that is before any\ndeductions for contributions, taxes, interest, and\n245\n- 11 -\n80 on, are made. The amount will probably be over\n$100.00. Have you any reasonable explanation for the\ninability of your office to figure closer than this?\nWe \"white collar\" people are literally beaten into\nthe dust. *** The critical feeling which I have with\nreference to excessive taxation, and the fact that re-\nfunds are not forthcoming, is shared generally by the\nmany millions of \"white collar\" wage-earners in the\nUnited States. ***\nEmile Ramel, Brooklyn, New York. About three months\nago I filed my income tax return with the office at\nHoyt and Schermerhorn Streets 80 as to give that\noffice a chance or plenty of time to check same before\nthe week of the March 15th rush. I overpaid $28.85,\nbased on my weekly salary, and asked for 8. refund, as\nI will be again overpaid for 1944, based on the 20%\ndeduction at the source. Have heard nothing from them\nand could not get any information of a satisfactory\nnature in answer to my letter. Could your office do\nanything to expedite matters?\n246\nPOBLYCTORY\nTREASURY DEPARTMENT\nBUY\nVISITED\nSTATES\nWAR\nbonds\nPROCUREMENT DIVISION\nSTAMPS\nWASHINGTON 25\nOF THE DIRECTOR\nApril 21, 1944\nMEMORANDUM TO THE SECRETARY:\nM\nSale of corrugated sheet steel, originally purchased\nfor Lend-Lease, has just been completed. 3,172,000 pounds\nof steel were involved in this sale, and the price secured\nwas $118,003.00.\nThere were no other unusual activities today which\nseem to merit inclusion in this memorandum. Some study was\ndevoted to the proposed Office of Price Administration Sup-\nplementary Order governing sales by Government agencies.\nOur general opinion is that the proposed regulations are\nmuch more complex than is necessary.\nClifson E. Mack\nDirector of Procurement\nRegraded\n247\nTREASURY DEPARTMENT\n&\nINTER OFFICE COMMUNICATION\nDATE April 21, 1944\nTO\nSecretary Morgenthau\nFROM Mr. White HDW\n1. Stabilization Fund's Gold Transactions\nDuring the three months ending March 31, 1944, the\nStabilization Fund sold approximately $359.7 million in gold\nto foreign countries principally to be earmarked for their\naccounts with the Federal Reserve Bank of New York. Sales\nby countries were as follows:\nCountry\nSales in millions of dollars\nAfghanistan\n5.985\nArgentina\n64.837\nBolivia\n.499\nChile\n5.096\nColombia\n15.050\nCuba\n14.999\nGuatemala\n5.075\nHaiti\n.500\nIran\n4.000\nParaguay\n.500\nPeru\n1.995\nPortugal\n19.950\nSalvador\n2.063\nSwitzerland\n19.951\nTurkey\n29.925\nUnited Kingdom\n150.288\nUruguay\n7.482\nVatican City\n.499\nVenezuela\n10.969\nTotal\n359.663\nDuring the same period, the Stabilization Fund sold\n$15.7 million in gold to acquire local currency in India and\n248\n- 2 -\nthe Middle East for the purpose of financing United States\nwar expenditures. Sales by countries were as follows:\nCountry\nMillions of dollars\nIndia\n11.572\nIran\n2.007\nEgypt\n2.079\nTotal\n15.658\nThe Fund purchased approximately $5.0 million in gold\nfrom the earmarked account of the Royal Netherlands Govern-\nment.\nIn order to maintain its gold balance, it also purchased\n$341.5 million of gold from the Treasury General Fund.\nAs & result of the above transactions there was a net\ndecrease of approximately $28.7 million in the Stabilization\nFund's gold holdings to about $14.3 million as of March 31.\n2. Treasury Gold Stock\nDuring this quarter, the Treasury's gold stock decreased\n$337.7 million from $21,937.5 million to $21,599.8 million\nas of March 31. Known and estimated amounts of sales and\nacquisitions were as follows:\n- 3 -\nSales\nMillions of dollars\nSold to the Stabilization Fund\n341.5\nSold to industry\n7.0\nMiscellaneous\n5.1\nTotal\n353.6\nAcquisitions\nNewly-mined domestic\n3.4\nImports sold directly to mints\nand assay offices\n11.1\nMiscellaneous (coin and scrap)\n1.4\nTotal\n15.9\nNet decrease in the Treasury gold stock\n$337.7\n3. Total Gold Holdings of the United States\nDecember 31, 1943\nMarch 31, 1944\nTreasury Gold Stock\n$21,937,509,984\n$21,599,752,837\nStabilization Fund Gold\n42,907,236\n14,277,104\nTotal\n$21,980,417,220\n$21,614,029,941\nThe decrease in the gold holdings of the Treasury and the\nStabilization Fund during this quarter was $366.4 million.\nRegraded Unclassified\nTREASURY DEPARTMENT\n249\nINTER OFFICE COMMUNICATION\nAAK\nDATE April 21,1944\nTO\nSecretary Morgenthau\nFROM\nMr. White HDW\nSubject: Lend-Lease Exports to Russia\n1. In February, 1944, United States lend-lease exports\nto Russia totalled approximately $200 million as compared\nwith about $285 million in January, 1944.\n2. Among the principal non-military items were:\nMotor trucks (all sizes) ($13 million)\nWool cloth and dress goods ($10 million)\nDried eggs ($7 million)\nLard ($3 million)\nCanned meat, ex. chicken ($3 million)\nWheat flour ($3 million)\n3. Among the munitions sent were:\n159 P-39 pursuit fighters\n20 P-40 pursuit fighters\n215 light and medium tanks\n90 50 cal. aircraft machine guns\n50 50 cal. anti-aircraft machine guns\n192 40 mm. anti-aircraft guns\n18 3 in. 50 cal. naval anti-aircraft guns\n12 5 in. 38 cal. naval anti-aircraft guns\n2,077 scout cars\n1,122 motorcycles\n273 railway freight cars\n4. Shipments to Eastern Russia, presumably on Russian boats\nvia for about $38 million of the total of approximately $200\nVladivostok or some other Siberian port, accounted\nmillion exported during the month under review.\n250\nTREASURY DEPARTMENT\nOFFICE OF THE SECRETARY\nApril 21, 1944\nCONFIDENTIAL\nReceived this date from the Federal Reserve Bank\nof New York, for the confidential information of the\nSecretary of the Treasury, compilation for the week\nended April 12, 1944, showing dollar disbursements\nout of the British Expire and French accounts at\nthe Federal Reserve Bank of Now York and the means by\nwhich these expenditures were financed.\nEMB\nPoaraded\n251\nFEDERAL RESERVE BANK\nOF NEW YORK\nApril 20, 1944.\nCONFIDENTIAL\nDear Mr. Secretary: Attention: Mr. H. D. White\nI am enclosing our compilation for the week ended\nApril 12, 1944, showing dollar disbursements out of the\nBritish Empire and French accounts at this bank and the\nmeans by which these expenditures were financed.\nVery truly yours,\n1st H. L. Sanford,\nH. L. Sanford,\nAssistant Vice President.\nThe Honorable Henry Morgenthau, Jr.,\nSecretary of the Treasury,\nWashington 25, D.C.\nEnclosures\nCOPY\nRegraded Unclassified\nANALYSIS 07 DRITISH AND FRENCH ACCOUNTS\nStrictly\n(In Hillions of Dollars)\nWeek Ended April 12, 1944\nConfidential\nBANK OF ENGLAND (BRITISH GOVERNMENT)\nBANK OF FRANCE\nPERIOD\nDEBITS\nCREDITS\nNet Incr. (+)\nNet. Incr. (+)\nGov't\nTransfers to\nProceeds of\nTransfers\nSales of\nOther\nor Decr. (-)\nTotal\nTotal\nor Decr. (-)\nExpendi-\nOfficial\n.from\nSecurities\nofficial\nCredits\nin & Punds\nDebits\nCredits\nin D Funds\nTotal\ntyres\nCanadian\nOther\nTotal\n(Official)\nAustralian\nDebite\n(a)\nAccount\nDebits\nCredits\nGold\n(b)\nAccount\n(c)\n(d)\n(e)\n(e)\n(d)\nFirst year of may (a)\n1,793.2\n605.6\n20,9\n1,166,7\n1,828,2\n1,356.1\n52,0\n3,9\n416.2\n+ 35.0\n866.3(f)\n1,095.3(f)\n+ 299.0\nWar period through\n108,0\n14.5\n561,1\n+ 10,8\n878.3\n1,098.4\n- 220,1\nDecember, 1940\n2,782.3\n1,425.6\n20.9\n1,335.8\n2,793,1\n2,109,5\nSecond year of war(h)\n2,203.0\n1,792.2\n344\n407.4\n2,189,6\n1,193.7\n274.0\n16.7\n705.4\n- 13,2\n38.9\n8.8\n- 30.1\nThird year of way (1)\n1,235.6\n904.8\n7.7\n223.1\n1,361.5\n21,8\n5,5\n57.4\n1,276,8\n+ 125,9\n18,5\n4.4\n- 14.1\nFourth year of mgr(1)\n766.0\n1,0\n- 9,3\n312.7\n170.4\n280.9\n1,072.3\n-\n0,5\n155.1\n916.7\n+ 308,3\n10.3\n1943\nSeptember\n49.4\n16.8\n10.6\n22.0\n86.2\n-\n-\n15,0\n71.2\n+ 36,8\n-\n-\n-\n38,2\n16.0\n22,2\n115,4\n40.5\n+ 77.2\n-\n-\n74.9\n-\nOctober\n-\n-\n-\nNovember\n65.9\n12.4\n5.9\n17.6\n89,0\n-\n-\n3.5\n85.5\n+ 23,1\n-\n-\n-\nDecember\n98.1\n16,3\n-\n81,8\n134.5\n-\n36.5\n98.0\n+ 36.4\n-\n-\n-\n-\n-\n1944\n126,5\n+ C2,7\n.\n1,0\n-\nJanuary\n44.6\n22,2\n10.6\n12,0\n127.5\n-\n-\n-\nFebruary\n-\n29.0\n+ 0.7\n1\n-\n143.8\n14.3\n2,1\n127.4\n144.5\n115.5\n-\n-\nMarch\n152.9\n71.1\n12.5\n69.3\n133-3\n24.5\n108.8\n- 19.6\n1\n1\n-\n-\n-\nApril\nMay\nJuly\nAugust\nWeek Zaded\nMarch 22, 1944\n6.7\n1,0\n-\n29.8\n29.8\n+ 23.1\n-\n-\n5-1\n-\n-\n-\n-\n-\n12.8\n6,8\n6.0\n-\n-\n+ 30.7\n-\nMarch 29, 1944\n-\n43.5\n-\n43.5\n-\n- 58.1\n-\n-\nApril <. 1944\n15.0\n94\n8.4\n51.2\n16.9\n-\n-\n6.5\n10.4\n-\n1\n57.3(2)\n3,5\n-\n53.8(1)\n26,7(k)\n-\n-\n10,0\n16.7(k)\n- 30.6\n-\n-\n-\nSee attached sheet for Tootnotes.\nEngland\nJule 19, 1940) $27.6 million\nEngland\nthrough June 20, 1940 to Hareb 12, 1941) 054.9 million\nEngland Maunets 12, 1941) 811.2\nmillion\nRegraded Unclassified\n(a) Includes payments for doccunt of British Ministry of Supply Mission, British Supply Board, Ministry of Supply Tumber\nControl, end Ministry of Shipping.\n(b) Estimated figures based on transfers from the New York Agency of the Bank of Montreal, which apparently represent the\nproceeds of official British sales of American securities, including those effected through direct negotiation. In addition\nto the official selling, substantial liquidation of securities for private British account occurred, particularly during the\nearly months of the war, although the receipt of the proceeds at this Bank cannot be identified with any accuracy. According\nto data supplied by the British Treasury and released by Secretary Morgenthau, total official and private British liquidation\nof our securities through December, 1940 amounted to $334 million.\n(c) Includes about $85 million received during October, 1939 from the accounts of British authorised banks with New York banks,\npresumably reflecting the requisitioning of private dollar balances, Other large transfers from such accounts since October,\n1939 apparently represent current acquisitions of proceeds of exports from the sterling area and other accruing dollar\nreceipts. See (k) below,\n(d) Reflects net change in all dollar holdings payable on demand or maturing in one year.\n(e) For breakdown by types of debits and credits see tabulations prior to March 10, 1943.\n(f) Adjusted to eliminate the effect of $20 million paid out on June 26, 1940 and returned the following day.\n(g) For monthly breakdown see tabulations prior to April 23, 1941.\n(h) For monthly breakdown see tabulations prior to October B, 1941.\n(1) For monthly breakdown see tabulations prior to October 14, 1942.\n()) Voc conthly breakdown see tabulations prior to September 29, 1943.\nIncludes $ 4.5\nmillion apparently representing current and acou ulated dollar proceeds oi starling area services and\n{roundine exportsa and #1-3 million in connection with the expenses of our armed forces abroad.\n(:) or shieb $50.1 million represents cost of gold purchased for export.\nRegraded Unclassifie\nRegraded\n48413878 OF CANADIAN AND AUSTRALIAN ACCOUNTS\n(In Willions of Dollars)\nYesk Ended April 12. 1944\nConfidential\nCOMM\nBANK\nOF\nTylesfers from Official\nTransfers\nto\nNet Incr.\nto\nBrittich s/c\nofficial\nof\n(+) or\nOfficial\nTotal\nBritin\nTotal\nGold\nFor Own\nFor French\nOther\nDecr, (-)\nTotal\nBritish\nOther\nTotal\nGold\nother\nPERIOD\nA/C\nA/C\nCredits\nin $Rands(s)\nDebits\nA/C\nDebits\nCredits\nSales\nCredits\nin Rinds (e)\nA/C\nCredits\nSales\nFirst year. of me n\n323.0\n16.6\n306.4\n504.7\n412.7\n20,9\n36,7\n32,4\n181,7\n31,2\n3.9\n27.3\n36.1\n30,0\n6,1\n+ 4.9\nfor period through\ngeshber, 1940\n4772\n16,6\n460.6\n707.4\n534.8\n20.9\n110.7\n41.0\n+ 230.2\n57.9\n14.5\n43.4\n62.4\n50.1\n12.3\n+ 4.5\n16.7\n55.5\n81.2\n62.9\n18.3\n+ 9.0\nagord year of war(b)\n450.4\n-\n410.4\n462.0\n246,2\n3.4\n123.9\n88.5\n+ 1.6\n72.2\nWhird year of 0\n525.8\n0,3\n525.5\n566.3\n198.6\n7.7\n-\n360.0\n+ 40.5\n107.2\n57.4\n49.8\n112.2\n17.2\n95.0\n- 5,0\nFearth year of\n723.6\n723.6\n958.8\n47.1\n170.4\n-\n741.3\n235,2\n197.0\n155.1\n41.9\n200,4\n-\n200.4\n+ 3.4\n-\nN\n1943\nSeptember\n672\n47.2\n70.1\n-\n10.6\n-\n59.5\n+ 22.9\n16.8\n15.0\n1,8\n20.0\n-\n20.0\n+ 3.2\n-\nabober\n:\n-\n32.1\n71.3\n-\n-\n-\n71.3\n+ 39.2\n42.8\n40.5\n2.3\n26.5\n-\n26.5\n- 16.3\n15.4\n0,1\n15.3\n95.1\n-\n5.9\n-\n89.2\n+ 79.7\n6.6\n3.5\n3.1\n18.2\n-\n18,2\n+ 11.6\n0.3\n166.5\n35.1\n-\n-\n-\n55.1\n- 91.7\n39.7\n36.5\n3.2\n27.0\n-\n27.0\n- 12.7\n1944\nJanuary\n323\n-\n32.3\n78.5\n-\n10,6\n-\n67.9\n+ 46.2\n6.0\n1,0\n5.0\n11.)\n1\n11.3\n+ 5.3\nEmbruary\n25.4\n26,6\n1\n25.4\n118.5\n23,1\n2,1\n-\n93.3\n+ 93.1\n31.3\n29.0\n2,3\n-\n28,6\n- 2,7\nMarch\n30.3\n0.5\n29.8\n88.6\n15.0\n12.5\n-\n61.1\n+ 58.3\n27.6\n24.5\n3,1\n29.9\n-\n29.9\n+ 23\nAnril\nL.\nJuly\nAmount\nTeak Endad\nMarch 22, 1544\n509\n0.5\n5,41\n10.6\n#\n-\n-\n10,6\n+ 4,7\n-\n-\n-\n0.9\n-\n0.9\n+ 0.9\nMarch 29, 1944\n12.8\n-\n12,8\n4.1\n-\n-\n-\n41\n- B.T\n0.5\n-\n0.5\n5.6\n-\n5.6\n+ 5.1\nApril 1944\n172.6\n-\n172.6\n39.5\nE\n8.4\n-\n31+1\n- 133.1\n8.0\n6-5\n1.5\n10+3\n-\n10+3\na. 2-3\nApril 12, 1944\n2:9(1)\n-\n2.9\n(2.9(f)\n-\n-\n-\nAIC\n5.0\n10.0\n10.0\n-\n5.3(a)\n-\n5.3(b)\n4.7\nAverage Weekly axpenditures for\n(a) For monthly breakdown see tabulations prior to April 23, 1941.\nFirst year of war\n6.2 million.\n(b) For monthly breakdown see tabulations prior to October 8, 1941.\nSecond year of war\n8.9 million,\n(c) For monthly breakdown see tabulations prior to to October 14, 1942.\nThird year of mar\n10.1 million.\n(d) For monthly breakdown see tabulations prior to September 29, 1943.\nFourth year of was\n13.9 million.\n(e) Reflects changes in all dollar holdings payable on demand or maturing in one year.\nFifth year of war (through April 12, 1944)\n15.6 million.\n(f) Does not reflect transactions in short term U. S, securities,\n(g) Includes $ 3.6\nmillion deposited by War Supplies, Ltd.\nand $ 4.0\nmillion received from New York account' of Canadian Chartered Bank.\n(b) Includes $5.0 million in connection with the expenses of our armed forces abroad.\n255\nEXECUTIVE OFFICE OF THE PRESIDENT\nWAR REFUGEE BOARD\n1AA\nINTER-OFFICE COMMUNICATION\nDAMAPRIL 21,1944\nTO\nSecretary Morgenthau\nFROM\nJ. W. Pehle\nWhen and if you have time you may be interested\nin reading the attached excerpt from the debate in the\nHouse of Commons on the Inter-Governmental Committee.\ngot\n1457\nSupply: Committes\nHOUSE OF COMMONS\nDiplomatic, etc., Services 1458\n[Mr. McCorquodale,\nAs regards the actual work, I think\nmeans of establishing their rights if it is\nthe arrangement is really much the same\ncasonable and practicable. The Bill also\nas we have often had in the past in the\nbrings in many hundreds of thousands of\nForeign Office. We have often had three\nounteers who were previously left but.\npersons, the Secretary of State and two\nFor that. reason alone, it für no other, the\nUnder-Secretaries, or perhaps the Secre-\nBill will be justified. It is an integral\ntary of State and the Chancellor of the\npart, if only a part, of the Government's\nDuchy, or some other Minister holding\ngreat scheme for resett) ment after the\nan office which does not entail work on\nwar, and for that reason I commend it\nits own account, in order to assist our\nwarmly to the House.\ndeliberations. Generally, my right hon.\nQuestion pute and agreed to.\nFriend will also interest himself in the\neconomic side of our work, as he has been\nBill accordingly read the Third time,\ndoing, and the knowledge which he has\nand passed.\ngained at a number of conferences will\nbe invaluable to us.\nSUPPLY\nQuestion put, and agreed to.\nConsidered in Committee.\nCLASS Il\n[Mr. CHARLES WILLIAMS in the Chair]\nDIPLOMATIC AND- CONSULAR SERVICES\nCIVIL ESTIMATES, SUPPLEMENTARY\nMotion made, and Question proposed,\nESTIMATE. 1943\nThat a Supplementary sum, not exceeding\nCLASS 11\n153.873. be granted to His Majesty. to delray\nFOREIGN OFFICE\nthe charge which will come in course of pay-\nment during the year ending on the 31st day\nMotion made, and Question proposed,\nof March, 1944. for the expenses in connec-\ntion with His Majesty's Embassies, Missions\n\" That a Supplementary sum, not exceeding\nand Consular Establishments Abroad, and\n61,525 be granted to His Majesty, to defray\nother expenditure chargeable to the Consular\nthe charge which will curris in course of pay-\nVote: certain special grants and payments,\nment during the year ending un the just day\nincluding grants-it-aid: and sundry other\nof March, 1944 for the silaries and expenses\nservices.\nof the Department of His Majesty's Secretary\nState fur Fureign Affairs and the salary of\nMr. Granville (Suffolk, Eye): 1 gather\nMinister of State.\"\nthat we are now considering the Votes\nMr. Munder (Wolverhanipton, East): I\nin connection with the Inter-Govern-\nhope that we may have some explanation\nmental Committee of refugees and relief\nof the precise duties which the Minister of\nof prisoners of war and contributions for\nState will perform. It would be interest-\nthe funds of the International Red Cross.\ning il the Foreign Secretary could let us\nknow how it is proposed to allocate his\nThe Deputy-Chairman: Yes, that is so.\nduties between this country and abroad.\nMr. Granville: The Paper says that the\nI am desighted that the appointment has\nadditional provision required is a con-\nbeen made. I cannot think of anything\ntribution towards the funds of the Inter-\nmore satisfactory for the foreign affairs\nnational Red Cross Society\nof this country than that my two right\nin resognition of the work of the society\nhon, Friends should be associated together\nin the relief nf prisoners of war.\"\nin their conduct. 1 hope that my support\nwill not be loo damaging to them. I think\nIt goes on to say:\nthat the sum of £1,525 which it is pro-\nThe expenditure out of this grant-in-ald\nwill not be accounted for in detail to the\nposed to spend on my right hon. Friend\nComptroller and Auditor General.\nis money which will be very well spent.\nI quite understand that, but I thought we\nThe Secretary of State for Foreign\nmight have been told a little more about it.\nAffairs (Mr. Eden): It is intended that my\nright hon. Friend should assist me in the\nThe Minister of State (Mr. Richard Law):\ngeneral conduct of foreign policy under\nI must apologise to the Committee, and in\nthe guidance of the War Cabinet. 1 need\nparticular to the hon. Member who has\nhardly say that I warmly welcome his\njust spoken, and who has very kindly\nassistance. I have no doubt that I shall\ngiven way to me. I was not quile quick\nstand in need of it, and of any other help\nenough off the mark, but I hope I shall be\nI can find, in future as our problems get\nable to give him satisfaction on the very\nheavier, as I have no doubt they will.\nimportant matter that we are discussing.\nRegraded Unclassified\n1459\nSupply: Committee-\n1 MARCH 1944\nDiplomatic, etc., Services 1460\nI do not think that it will be necessary\n£50,000. I think hon. Members will have\nto give any very long or detailed explana-\nseen from the Estimate that that is only\ntion of the first sub-head of the Supple-\nby way of instalment. On another\nmentary Estimate, which is the grant-in-\noccasion we shall be asking the Com-\naid for the relief of prisoners of war, in\nmittee to underwrite our proportionate\nthe form of a further contribution towards\nshare of what we think may be the\nthe Funds of the International Red Cross.\nexpenses of the Inter-governmental Com-\nThe Committee has always supported\nmittee in the coming year. That figure\nright through the war the efforts which\nis £1,000,000, a provisional figure, and\nthe International Red Cross have made to\nwe have undertaken to underwrite\nimprove the lot of prisoners of war and\n£500,000 and the United States have\n1 do not suppose for a moment that the\nundertaken to underwrite the other\nCommittee would wish to withhold any\n£500,000.\nfurther support that they could give to\nThe difference between what we were\nthe International Red Cross.\nasking in 1939 and 1940 for the Inter-\nThe additional sum required under the\ngovernmental Committee and what we are\nSupplementary Estimate is not a big\nasking now is an indication of the great\none, £3,873. The purpose of it is to enable\ngrowth there has been in this hideous\nthe International Red Cross to maintain\nproblem of refugees. The comparison\na sub-office in Shanghai, where they hope,\nbetween £2,000 and (50,000-or, indeed,\nand we hope, they will be able to be of\n{500,000-is not out of place as a com-\nsome service to the very large number of\nparison of the growth in the horror and\nBritish civilians who are interned in\ncomplexity of the problem. It is a\nShanghai, and of course, to help too, I\nmeasure of the determination and serious-\nhope, the very much smaller number of\nness of purpose with which His Majesty's\nBritish prisoners of war who are there.\nGovernment and the Government's repre-\nWe are quite satisfied that the Inter-\nsented on the Inter-governmental Com-\nnational Red Cross is doing as much as\nmittee are tackling the refugee problem.\npossibly can be done for our prisoners of\nIt may be for the convenience of the\nwar and our fellow countrymen and\nCommittee if I give a brief review of the\nwomen who are interned in the Far East.\nevents which led to the reconstitution of\nThe fact that it cannot do more is in no\nthe Inter-governmental Committee. The\nway due to any lack of good will or of\nrefugee problem was, unfortunately,\nknowledge and effort on the part of the\nalready of monstrous proportions before\nInternational Red Cross. It is simply, из\nthe war, and it is difficult to realise now\nI am afraid we all know, due to the atti-\nthat, even before the war, when civilised\ntude of the Japanese authorities. I have\nGovernments like the Government of this\nDO doubt that the Committee will approve\ncountry. and others, were in relation with\nthis grant-in-aid and I will, if I may, pass\nthe German Government, something like\non to the second sub-head, the grant-in-aid\n400,000 human beings were being driven\nfor the Intergovernmental Committee on\nlike cattle across the borders of Germany\nrefugers. Here I think it would probably\nand were either expelled, or had to take\nbe for the convenience of the Committee\nrefuge in other lands, to avoid a worse\nLE I dealt with this matter fairly fully,\nfate. It was to meet this appalling situa-\nbecause it is some time since we had 1\ntion that developed even before the war\nDebate on this tremendously important\nthat the President of the United States\nsubject.\ntook the initiative in summoning a con-\nThis in not the first time that - have\nference at Evian in 1938. Out of that\nbut to come to the House to ask for pro-\nconference grew the Inter-governmental\ntake for- the Inter-Governmental Com-\nCommittee on Refugees.\nmilk on Refugees, but we have never\nThe primary function of the Inter-\n-\nNO the House for provision on this\ngovernmental Committee in those days\nscale,\nor indeed, anything like it. In\nwas to negotiate with the German Govern-\nthe Committee was asked to provide\nment 60 that the lot of those unhappy\nDissa\nand in 1940 and 1945 provision\npeople might be improved and their escape\nW made on the saide sort of scale. Since\nfrom Germany facilitated: in short, to\nCo. for be born DO vote for the Inter-\nthat the cruelty of the German authorities\ngoverniciental Committee. Now I em ask-\nand the German people might, in some\nW 150 Committee, not for (6,000 but for\ndegree, be mitigated. I think it is a. fact\nRegraded Unclassified\n1461\nSupply: Committee- HOUSE OF COMMONS Diplomatic, etc., Services 146z\n[Mr. Law.]\nthe United States, the Netherlands,\nthat, before the war, the Inter-govern-\nBrazil, the French National Committee of\nmental Committee was able to do a great\nLiberation and Argentina. 1 would like\ndeal in mitigation. It co-ordinated the\nto take this opportunity of saying how\nactivities of the various voluntary societies\nmuch His Majesty's Government appres\nand carried out an examination into the\nciate the fact that the Inter-governumental\nprospects of finding other homes for those\nCommittee is still able to call upon the\nunhappy people in various parts of the\nexperience of my Noble Friend the Mem-\nworld. On the outbreak of war, all that\nber for Horsham and Worthing in matters\nwork had to cease. There was another\nconcerning refugees, and upon his wide\nmeeting of the executive of the Inter-\nsympathy and deep interest in regard to\ngovernmental Committee in Washington in\nthis matter. I would like at the same\nOctober, 1939, but, for the next two or\ntime to pay a tribute to the other repre-\nthree years after that, it never met again.\nsentatives of other Governments who are\nThere was, indeed, no scope or work that\nserving on the Inter-governmental Com-\ncould usefully be done.\nmittee at the present time, Other\nThe work of the Inter-governmental\nGovernments are represented by their\nCommittee seemed to come to an end\nAmbassadors, It is a remarkable thing\nwhen the war broke out, but, of course,\nthat these men, busy and over-burdened\nthe problem remained. With every day\nas they are, have been able to devote SO\nthat passed, the refugee problem increased\nmuch time to this hideons problem of\nin size, difficulty and horror, until it is\nrefugees. And it is very much to the\ncalculated now that, when the war in\ngeneral advantage that they have been\nEurope comes to an end, there will be\nable to give that time, because it is an\nsomething like 20,000,000 human beings\nindication to the world as a whole of the\nwho have been uprooted from their homes\nimportance which is attached to a solu-\nin Europe, A figure like that is so big\ntion of it by the respective Governments.\nthat it is almost meaningless. It is liter-\nMr. Lipson (Cheltenham); Does the\nally true that the human imagination\nright hon. Gentleman's reference to the\ncannot comprehend the full extent of\namount of time these members have given\nhuman misery contained in a figure of\nmean that this Committee has met fre-\nthat magnitude. It very soon became\nquently since the Bermuda Conference?\nclear, as the war progressed and as the\nrefugee problem became more acute, that\nMr. Law: It has met several times since\nthere was a problem which could be\nthe Bermuda Conference. 1 know from\ntackled with hope of success only upon\nmy own experience that all the members\nthe international plane. Accordingly, as\nof it take a most keen and deep interest\nhon. Members are aware, representatives\nin the problem. The Bermuda Conference\nof His Majesty's Government and the\nrecommended that the Inter-governmental\nGovernment of the United States met\nCommittee should be revived, that its\nsome months ago at Bermuda, and went\nmembership should be extended and that\nexhaustively into the whole refugee\nits Mandate should also be extended. In\nproblem.\naccordance with that recommendation\nthe Executive of the Inter-governmental\nOne of the recommendations which the\nCommittee issued invitations to a number\nBermuda conference made was that there\nof other Governments who had not pre-\nshould be instituted at once international\nviously been associated with the work to\nmachinery to deal with the problem, and.\njoin the Committee, and 1 understand\nas the Inter-governmental Committee still\nthat replies have already been received,\nexisted-though it had not been active\naffirmative replies, from Czechoslovakia,\nfor some time-it was thought to be the\nEgypt, India, Luxemburg, Poland, the\nmost salisfactory form of international\nUnion of South Africa and the Soviet\nmachinery. Accordingly, in, I think,\nUnion.\nAugust last, the Executive of the Inter-\ngovernmental Committee met under the\nBut it was necessary not only to\nchairmanship of my right hon. Friend the\nexpand the membership. It was neces-\nMember for Horsham and Worthing (Earl\nsary also to alter its Mandate, As I said\nWinterton). The executive consists, as\nearlier the original function of the Inter-\nthe Committee are probably aware, of\ngovernmental Committee was, in the\nrepresentatives of the United Kingdom,\nmain, to negotiate with the German\nRegraded Unclassified\n259\nSupply:\nCommittee\nPORK\n1\nServices\n144\nauthorities. Clearly that W/J BO longer\nmental Committee. With . this 16\npossible at the time when the Inter-\nthat, there 50, I die service the Committee,\ngovernmental Committee was revived. It\nevery property that the executive\nwas limited under its original Mandate\nmachinery of the Inter governmental\nto dealing with refugees from Germany,\nCommittee on refugoes will be built\nAustria, and Inter on the Sudetenland,\ninto as effective a piece of machinery 1\nClearly, that again was inappropriate. Its\nconditions permit. It in being stordily\nscope had to be much wider than that,\nbeik up sow, I hope very much that\nPerhaps the most important change that\nthe Committee will not press DIA to &\nhas been made in the Mandafe of the\ninto details of the work of the Inter\nInter-governmental Committee is this:\ngovernmental Committee. This refuges\nunder its original Mandate the Inter-\nproblem is one of those in which the\ngovernmental Committee had no finan-\nmore one talks about what 5 being done\ncial responsibility of any kind for the\nthe less chance there is of achieving any-\nmaintenance of refugees. Clearly if that\nthing, I think the Committee realises\nprovision was maintained it could not\nthat fully as well as I do bet I would\ndo any effective work whatever, 50 the\njust like to say this about what has been\nMandate was revised, so that there now\ndone.\ncomes within the purview of the Com-\nThe Vice-Director,- Malin, is on a\nmittee refugees from the whole of Europe,\nvisit to North Africa and Italy, where he\nand it was revised further so that the\nhas been seeing conditions on the spot.\nCommittee can spend money upon the\nThe honorary Assistant Director, Doctor\nmaintenance, the transfer and preserva-\nKullmann, has just returned from a visit\ntion of refugees. In other words, in the\nto Switzerland, where he has been going\nnew reincamation, the Inter-governmental\ninto the whole question of refugees. It is,\nCommittee has changed from being\nI understand, the intention of the Execu-\nin the main a piece of co-ordinating\ntive Committee to have permanent repre-\nmachinery into an executive office which\nseptatives in those centres which are\nwill be able, of its own initiative, to\nmainly concerned with the refugee prob-\nundertake tasks in connection with the\nlem. I can assure the Commitee that the\nsafety of refugees.\nInter-governmental Committee is making\nI think the Committee is aware that\nevery possible effort to forward the work\nSir Herbert Emerson, the League of\nof resoue that is consistent with the effet-\nNations High Commissioner for Refugees,\ntive prosecution of the war.\nhas for some time been the Director of\n1 would like to say just a word about\nthe Inter-governmental Committee.\nI\nthe actual financial arrangements. The\nthink it must be a matter for great con-\nadministrative expenses of the Inter-\ngratulation that be has been confirmed\ngovernmental Committee are being\nin his appointment as Director of the\nExecutive Committee. Sir Herbert\ncovered by a percentage contribution by\nall the member Governments. Our per-\nEmerson, of course, continues to be\ncentage is 12 per cent. and it is calcu-\nLeague of Nations High Commissioner.\nlated that that will amount to £4,000\nIt is very valuable that the two bodies\nin the following year; It does not\nwhich are dealing with refugee problems\nshould have a link between them in the\nactually appear in this Vote because the\nExecutive have enough funds to carry on\nperson of the Director. I suppose there\nuntil the end of March, but next year the\nis no one in this country, or indeed in\nCommittee will be asked to make pro-\nthe world, who has so wide a knowledge\nvision for something in the nature of\nof this problem as Sir Herbert Emerson. I\nam sure too that there is no one whose\n£4,000 for administrative expenses. The\nheart is more deeply in it.\noperating expenses are another matter,\nThey are likely to be very considerable.\nSir Herbert Emerson is the Director.\nIndeed, we must all of as hope that they\nUnder this new organisation an American\nwill be considerable because the greater\ncitizen, Mr. Patrick Malin, who has had-\nthe expenditure on operations the more\ngreat experience of welfare work is Vice-\nchance there is of our being able to do\ndirector, and Doctor Sillem of the Nether-\nsomething practical for the relief and\nlands is Secretary-General. # In addition,\nresctie of the oppressed peoples of Europe.\nDoctor Kullmann the Deputy League of\nNations High Commissioner, is Honorary\nAs I said earlier it has been calculated\nAssistant Director of the Inter-govern-\nthat operating expenses will amount to\n1405\nSupply:\nCommittee- HOUSE OF COMMONS Diplomatic, itc., Services 1466\n(Mr. Law]\nrefer to prisoners of war under the head-\n.000,000 in the coming 12 months, The\ning BB, which is:\nlited States Government and ourselves\nhave agreed to underwrite that\nRelief of prisoners of war; contribution\ntowards the funds of the International Red\n(1,000,000. It Was necessary, I think,\nCruse (Grant in Aid).\"\nto take that action because we could not\nI understand from the right hon. Gentle-\nafford delay, and we could not afford a\nman that the sum which is being voted és\nlong period in which neither the Com-\n£3.873. As be says, of course, the Com-\nmittee nor the Director knew where they\nmittee will not grudge the Government this\nstood, bit I should make it clear to the\nitem. I am sorry it is 50 small. 1 under-\nCommittee that the other member Gov-\nstood from the Minister for State that it is\nenunents are being asked to contribute to\nour contribution towards the setting up\nthe fullest extent to these operating\nof an office in the Far East by the Inter-\nexpanses. I have no doubt that they will\nnational Red Cross Society. I was rather\nwish to share in this very important\nsorry that the right hon. Gentleman did\nhumanitarian work. Therefore, we may\nnot tell us a little more about this because\nexpect that through we are underwriting\nwe have all a considerable number of con-\n£500,000 we shall not be called on, in\nstituents who are extremely anxious after\nthe event, to supply anything like that\nthe statement which was made in the\namount However that may be 1 am\nHouse by the Foreign Secretary with\nquite sure that the Committee would not\nregard to what is happening to our\nwish the Inter-governmental Committee\nprisoners in the Far East, and the atro-\n00 refugees to be under any disability at\ncities that have been committed by the\nall through lack of finance,\nJapanese, Although I understand that\nthere is a great deal of anxiety and tre-\nThere is just one more thing which\nmendous interest in this problem of the\nperhaps I ought to add. As I have said\ninternational refugees I am sorry that the\nthe Executive Committee has met several\nright hon, Gentleman did not take a little\ntimes and, of course, il is the Executive\nmore time in his speech to tell us what\nCommittee which directs and supervises\nif is hoped to achieve by the setting up\nthe work of the whole organisation, but\nof this office by the International Red\nit may well be that the time will come\nCross in Shangbai because, so far-I shall\nwhen it is desirable to have a plenary\nbe very brief about this-we have had, I\nfeeting of the Cummittee, and 1 am able\nthink, two statements from the Foreign\nto way now that is being borne in mind\nSecretary about what is happening out\nby the Executive Committee. When\nthere, and we have also had a statement\nopportunity offers 1 have no doubt they\nfrom someone connected with the Inter-\nwill give the fullest consideration to the\nnational Red Cross. My view is that there\npossibility of calling together such a\nis a feeling in the minds of the relatives and\nJ do not think I have anyhing\ndependants of our prisoners of war in the\nINSURER - say at this stage. I expect that\nFar East that these statements are some-\nother hon: Members will be making con-\nwhat contradictory. One was reassuring\ntributions to our discussion, and if\nand others gave facts of brutal treatment\nnecessary I shall be very glad to reply to\n1 realiso that it might be difficult for the\nDear. But I do commend must heartily\nForeign Secretary to give us all the in-\nUnin Voiv to the Committee I am sure\nformation which is available to him from\nthat just Committee will want the Inter-\nmen who have escaped from the Far East,\ngovernmental Committee to have the\nbut I think it would be better if he could\nfulled possible support and that the Com-\ngive us a little more information on what is\nmilter look- forward to its achieving,\nintended with regard to this office which\nwithin the Imitations imposed by war,\nis to be set up. Is it hoped that, as a\nconsiderable results.\nresult, His Majesty's Government or our\nMr. Granville: I apologise for having\nmilitary authorities or the Red Cross will\nstand Detween the Committee and that\nbe able to make some contact with the\nvery interesting statement which the right\nJapanese Government, and make repre-\nsentations which will secure an alleviation\nhim, Gentleman has made. 1 will only\ndetain hon. Members for one or two\nof the conditions of our prisoners of war\nin their hands?\nmoments before the Committee go on to\ndiscuss the second part of this Vote nn\nMr. Law: I am extremely sorry if I gave\nRefugees I would like very briefly to\nthe impression that I was dealing in a\nRegraded Unclassified\n1467\nSupply: Committee-\nI MARCH 1944\nDiplomatic, etc., Services\ncursory way with the questions which the\naware, are to transmit lists of prisoners of\nhon. Stember has just touched upon. I\nwar, to distribute parcels, to visit camps,\ncertainly appreciate fully. and I do not\nand so on. The Japanese authorities\nthink anybody could fail to appreciate,\nhave been extremely stiff about allowing\nthe deep anxiety which prevails through-\nthe International Red Cross to exercise\nout the country about the conditions of\ntheir rights: in fact, they have not allowed\nour prisoners of war and internees-\nthem to excrcise their rights, in spite of\nMr. Granville: I thought the right hon.\nrepeated representations, in what are\nGentleman wished to interrupt me. Per-\ncalled the occupied territories, the Philip-\nhaps I might be allowed to finish, as\npines, Malaya, the Netherlands East\nhave already been interrupted once.\nIndies, and so on.\nknow the difficulties of the Foreign Office.\nMr. Mathers (Linlithgow): Are the\nThe difficulties of distance and the atti-\nJapanese authorities parties to the Con-\ntude of the Japanese constitute a tremen-\nvention?\ndous handicap to the Government in try-\ning to get improvement in the state of\nMr. Law: I will tell my hon. Friend\naffairs, but I hope the Government will\nthat in a moment, As 1 was saying, in\nremember that this Japanese war may go\nspite of repeated pressure from the Inter-\non for years. What is to happen? I ask\nnational Red Cross and the protecting\nthem to put themselves in the position of\nPower, the Japanese have refused to\nthe dependants of these prisoners, who\nallow any visits to camps in the occupied\nsuddenly get this statement from the\nterritories. With regard to the obliga-\nForeign Secretary after they had received\ntions of the Japanese under the Geneva\npost-cards from prisoners saying that they\nConvention, the Japanese Government did\nwere well treated.\nnot ratify the Convention, but at the\nbeginning of the war in the Far East they\nThe Deputy-Chairman: The hon. Mem-\nsaid that they were going to observe its\nber said he hoped the Debate would be\nprovisions. How little they have kept\nshort. He is now going into the question\ntheir word the Committee are aware.\nof the length of the war and a great many\nother things. This is a narrow Amend-\nMise Rathbone (Combined English Uni-\nment, and I hope that he will keep to it.\nversities): While I do not intend to trouble\nthe Committee with a very long speech.\nMr. Granville: Very well. I will confine\nI am afraid I shall have to depart from\nmyself to saying that I hope that in setting\nthe welcome brevity which has marked\nup this office no money will be spared,\npractically all the speeches in to-day's\nand no amount of initiative be lacking on\nDebates, because I have a fair amount to\nthe part of the Government in supporting\nsay about the work of this Committee.\nthe Red Cross, so that we shall have more\nThis is the first opportunity we have had\ninformation as to what is happening to\nsince 19th May of a general Debate on the\nour prisoners of war who are suffering in\nrefugee question. When some of us have\nJapanese hands. I hope that the right\nasked in recent months for such an oppor-\nhon. Gentleman will give a. full assurance\ntunity, we have been reminded that the\non that point.\nopportunity would come when we dis-\nMr. Law: I apologise for interrupting\ncussed this Vote. That is my excuse for\nthe hon. Member just now: I thought be\ngoing in a little more detail into some of\nhad finished. I was saying that we were\nthe questions which are troubling myself\nconscious of the very deep interest in the\nand others who are interested in relugees.\nHouse and in the country on the matters\nIs it not rather significant of the impor-\non which the hon. Member has touched.\ntance attached to different aspects of the\nHe asked whether the opening of this new\nquestion, that not long ago we spent an\noffice would lead to more success in the\nentire day discussing U.N.R.R.A., and\nrepresentations made by the International\nthat the amount we then voted was\nRed Cross to the Japanese authorities. It\n£80,000,000, while now, when we have\nis really impossible to give any answer.\nour first opportunity since May of discuss-\nOne must hope that it will lead to im-\ning the work of the Inter-Goverumental\nprovement. It will certainly lead-I think\nCommittee, the subject is sandwiched in\nit is bound to lead-to some improvement.\nbetween other subjects on a very busy day,\nThe functions of the International Red\nand the amount we are asked to vote is\nCross, as the hon. Member is probably\n£50,000. I was glad to hear that that\n1469\nSupply Committee- HOUSE OF COMMONS Diplamatic, etc., Services 1470\n[Miss Rathbone,]\ncovers only administrative expenses, and\nwith several rooms, in Lower Regent\nthat the expenditure on the operative\nStreet It has four people, whose iden-\nwork of the Committee is likely to be\ntity has been described by my right hon.\nmething in the nature of £1,000,000.\nFriend: Sir Herbert Emerson, his Ameri-\n1 am not making any comparison be-\ncan deputy, his Swiss deputy, and the\ntween the Inter-Governmental Committee\nDutch secretary to the Committee-an\nand U.N.R.R.A. U.N.R.R.A. covers a\nadmirable learn. I know thein all. I have\nvast field, Its job is to deal with the\nthe highest esteem for them all. They\nwhole post-war problem of rehabilitating\nhave wide experience and great knowledge\ndistressed Europe. Dealing with displaced\nof refugee problems, and their hearts are\npopulations, who include refugees -\nin their jobs. Sir Herbert, especially, has\nthat seems the new fashionable\nworked at this problem for a long time.\nHe has a background of Civil Service\nterm for refugees - is only one\npart of its work. But this Inter-\nexperience and very great knowledge. We\nGovernmental Committee on Relugees\ncan be confident that any work done by\nalso covers a pretty vast field. Consider\na team like that will be done with the\nintinest discretion, with high technical effi-\nsome of its responsibilities. 1 noted that\nmy right hon. Friend said that be did\nciency, No rash promises will be made,\nand there will be no unwise publicity. It\nnot want to go into detail in discussing\nwill all be in the best traditions of British\nits work, and that it would be better not\nto go into details, I quite recognise that,\nand other diplomacy. But that technique\nbut there are certain facts known to us\nhas its disadvantages. It is inevitably\nslow-work that has to be consented to\nall as to the kind of work it has to do.\nFirst, it is responsible, I gather, for con-\nby a large number of nations working to-\ncerting immediate rescue measures for the\ngether has, I suppose, inevitably to be\nslow.\nvictims of Nazi oppression, so far as they\nare dependent upon inter-governmental\nBut when one thinks of the machinery\nof that little office, with three or four\naction; for instance, the removal\nfrom the neutral States of the over-\nrooms, four people, with their two or\nflow of those refugees they have\nthree typists, and £50,000 which we are\ntaken in, and the maintenance of\nvoting to-day for their expenses, one\nthinks of the tasks allotted to them. How\nthose refugees who are removed from\nmany of the millions of men, women\nneutral countries to havens of temporary\nand children who are threatened not\n(uge, and also of refugees who have\nmerely with death, but with torture, can\naped directly from enemy areas. We\nbe rescued? What is to be done with\nheard that the Deputy-Director, Mr.\nthem if they are rescued, and, then,\nMalin, has been in Italy and North\nwhat is to be done with them after the\nAfrica, where, no doubt, he was consider-\nwar? It is just a little as though, seeing\ning that problem. We know that many\na number of people escaping from a\nthousands of refugees were found in that\nhungry tiger, you sent after them a stage\npart of Italy which has now been libera-\ncoach, drawn by four white horses, when\nated from the enemy.\nwhat you needed was a Rolls-Royce. It\nAlso, in regard to its post-war plans-\nseems rather a leisurely machine, and a\nand I attach extreme importance to this\nsmall machine. I am not complaining;\n-the Committee is responsible for\n1 suppose an Inter-Governmental Com-\nnegotiating arrangements with neutral\nmittee has to work in that way. We have\nPowers as to what help we can give them\nbeen told that there are 36 member States\nin removing, now or after the war, the\non that Committee. They have not yet\nburden of refugees that they carry, so\nmet in plenary session, but we are told\nthat they may be willing to take larger\nthat a meeting is likely to be arranged.\nnumbers. Obviously, what the small\nThat is not likely to lead to a quick\nneutrals do largely depends on whether\nresult. When you have 36 Government\nthe burden is going to be a permanent\nrepresentatives meeting together like\nburden or whether they can count on\nthis, every one of them will ask, What\nother nations relieving them of a part of\ndoes my Government think of it? \" before\nit or assisting them with the maintenance\nthey agree to anything. Then as to their\nof their refugees. For all this work\nExecutive. I am not going to criticise\nwhat machinery has the Inter-Govern-\nthem in the least. I have no justification\nmental Committee? It has a small office,\nfor doing so, and I am told that they\nRegraded Unclassified\n1471\nSupply: Committee-\nMARCH 1944\nDiplomatic, the Services 1472\nwork together admirably, but it is rather\nodd to note that you have the Argentine\nCommittee can only act, just as the\nIso-1 make no comment, but note the\nLeague of Nations did, through the in-\nSame-and also the Netherlands and\ndividnal Governments represented on the\nBrazil as members, the Liberation Com-\nCommittee It cannot do anything itself\nmittee nf France is a member, and the\nexcept on a small scale, because all its\nother two members are the United States\naction depends upon what the individual\nand ourselves, So far 50 good, but it\nGovernments may do, and, therefore, I\nis rather curious that most of the countries\nwant to say that, while we gladly vote\nwhich are the chief victims nf persen-\nthis money. we should supplement the\ntion, such as Poland, Czechoslovakia and\nwork of this Committee by insisting that\nthe U.S.S.R. are not, as far as I know,\nan organ similar to the Board in the\nrepresented on this Executive. Nor are\nUnited States, with a full-time executive\nthe chief neutral countries which have\ndirector in constant touch with the director\nspace to receive refugees-Sweden\nin the United States, should be set up.\nand Switzerland. The Executive was\nThe American Board has direct access to\nappointed in 1938, but it has never been\nthe President himself. The object is that\nit would make it 50 much easier for the\nreviewed or added to with a view to\nInter-Governmental Committee to do its\nmaking it rather more realistic, Is it not\npossible for something to be done about\nwork if it had in London a body repre-\nthat?\nsenting His Majesty's Government which\nreally is carrying out the recommendations\nNow 1 come to a more important point.\nmade by the Inter-Governmental Com-\nMany of us have had our minds on this\nmittee.\npoint for over a year, and we then sug-\ngested that what was wanted in this\nThis is a vast problem. This Inter-\ncountry was a new organ of Government\nGovernmental Committee is an inevit-\nwhich would co-operate with the Inter-\nably slow mechanism in tackling so vast\nGovernmental Committee so as to secure\na problem as the problem with which it\nthe full-time intration of first class\nhas to deal There are questions of\nminds on this question. Well, only two\nshipping and transport, collecting of\nor three weeks ago the United States did\nrefugees, questions as to where refugees\nthat very thing. President Roosevelt set\nare to be kept until permanently settled,\nup a War Refugee Board, composed of\nand questions of negotiations with\nhe Secretary of State, Mr. Cordell Hull,\nneutrals. There are questions of food\nthe Secretary of the Treasury, Mr.\nsupplies and 50 forth. It is a huge busi-\nMorgenthau, and the Secretary of State\nness, and it is the one hope of rescue for\nfor War, Mr. Stimson. We have a sub-\nmillions of people, nearly every one, in\ncommittee of the Cabinet here composed\na way, a separate problem. You really\nof three equally eminent Ministers, but\ncapnot work it unless the nations repre-\nthe difference is that the American Board's\nsented on the Committee have their\nfunctions are clearly defined and it has a\nseparate machinery for co-operation with\nfull-time Executive Director. Its functions\nthe Inter-Governmental Committee, for\nare set out in a pamphlet-which I have\nperpetually working backwards and for-\nhere_\nwards as between it and themselves to\ncarry out the projects planned on a far\nThe Deputy-Chairman: I think we are\nbigger scale than would be possible if the\ngetting a little wide, because if it is pos-\nwork depended on a Committee with so\nsible to pay a tribute to the American\nsmall a mechanism of operation.\nrepresentatives on this Board, in a wide\nway, such as is now being done, it would\nThis is my last word. I ask the Com-\nbe equally possible to criticise them, and\nmittee to recognise that we in this country\nit is not within the duty of this Committee\nhave a rather special responsibility for\nto criticise or otherwise comment on the\nthis Inter-Governmental Committee. We\nrepresentatives of a foreign Government\nought to take the initiative and set a lead\nin that way. I did not wish to stop the\nto other nations by what we ourselves are\nhon. Lady before, but I do not think we\ndoing to help the Inter-Governmental\nmust go any further.\nCommittee. For one thing, the Com-\nmittee is situated in London, while the\nMiss Rathbone: I bow to your Ruling,\nheadquarters of U.N.R.R.A. are in the\nMr. Williams, but the point 1 wanted to\nUnited States, where we expect that a\nmake was that the Inter-Governmental\ngood deal of the planning out will be\nRegraded Unclassified\n1473\nSupply: Committes- HOUSE OF COMMONS Diploinatic. etc., Services 1474\nMiss Rathbone.]\nall the threatened victims we can and not\ndone. The chairman of the Inter-Govern-\ngrudge the money, but vote it gladly,\nmental Committee and the British repre-\nsentative on it is the Noble Lord the\nMr. Lipson (Cheltenham): I am sure\nMember for Horsham (Earl Winterton),\nthe Committee will understand why it was\nand therefore the Committee looks a good\nsomewhat difficult for the hon. Lady to\ndeal to him, because we know his great\nkeep within the rules of debate. We know\ninterest in this problem, and we want\nhow very strongly she feels on this sub-\nto see that he is able to say to his Com-\nject, and how much she has done herself\nmittee that the British Government is\nto arouse public opinion to a sure of re-\ngoing to do so-and-so and thus give a\nsponsibility in the treatment of refugees,\nlead for the whole of the world. There\nand we are extremely grateful to her. I\nis another reason for our special respon-\nwelcome the increase in the amount of\nsibility. We know that though very\nthe grant from £2,000 to £50,000, with\nmany of these threatened millions are\nthe promise of underwriting (1,000,000\nnon-Jewish, the majority of them are\nfor further operations, because this in-\nJewish-the Jews being the one race\ncreased expenditure, I hope, means an\nwhich Hitler threatens with wholesale\nincrease of activity. One naturally asks\nextermination of men, women and chil-\noneself-Is the amount that is being spent\ndren, and he is doing it. He threatens\neven now enough, and are we really\nto exterminate the entire Jewish popula-\ntackling this problem as it ought to be\ntion of Europe. Well, we hold the gates\ntackled, because we were reminded by\nof Palestine and we promised the Jews a\nthe right hon. Gentleman, in introducing\nNational Home there-\nthe Vote, that this is a problem which\nis really beyond what the imagination\nThe Deputy-Chairman: I am afraid the\ncan conceive, and therefore the action\nhon. Lady must keep off Palestine and\ndealing with it ought to be in accordance\nthe Home for Jews. If we once begin to\nwith the news. We were asked not to in-\ndiscom that, there will be absolutely no\nquire into the details of the work. We\nend to it, and it has oothing to do with\nwill respect that request, but we are very\nthe Question before the Committee.\nmuch left in the dark as to what actually\nMiss Rathbone: In our hearts, it was\nis being done. So far as we are told to-\nvery much to do with it, because we\nday, all that has been done is that certain\nmachinery has been set up, but we did\nlways remember how many people are\nnot find, in the information given to us,\ntheady massacred who might be alive\nand happy now if they had been allowed\nany sense of urgency or of the importance\nof the time factor. There are millions\nto go to that promised land. We remem-\nher also that the British Empire is a big\nof tragedies behind this particular pro-\nblem, so we ask ourselves how many\nplace. If I cannot mention Palestine,\nlives are being saved and whether this\nfor God's sake, let us find a place some-\nwhere in the Empire where these people\nproblem can be tackled only by the ortho-\ndox method associated with inter-govern-\ncan get in. I was reminded by the Under-\nmental committees.\nSecretary for the Home Department in\nputting a question-\nI would like to ask the member of that\nCommittee in what spirit they approach\nThe Deputy-Chairman: We cannot go\nthis problem. Do they see it in this light?\nInto Home Office matters on this Vote.\nSupposing the positions were reversed,\nMiss Rathbone: I will not go further\nand, instead of them being an inter-\nwith it. But if it was a mistake to men-\ngovernmental committee trying to bring\ntion the Home Office, it was not my mis-\nsuccour and relief to victims of Nazi\ntake but that of the Under-Secretary in\nterror, they were those victims and were\ntelling me that I should be able to raise\nthemselves the refugees? Could they\nthe question on this Vote. We vote this\nhonestly say that they themselves, in\nmoney gladly and only wish that the sum\nthose circumstances, would be satisfied\nwe are voting was larger. I hope the\nwith what was being done by the Inter-\nVote for the operational activities of the\nGovernmental Committee? It seems to\nInter-Governmental Committee, which we\nme that that is a very fair test. But for\nshall be asked to agree to later, will be\nthe grace of God, the position might have\nbeen reversed, and, instead of the Inter-\nlarger because we have a heavy re-\nGovernmental Committee being in the\nsponsibility in this matter. Let us save\nRegraded Unclassified\n475\nRoyal Amount\n1 MARCH 1944\nDiplomatic, etc., Services 1476\nposition of being able to help, they might\n3. Prize Salvage Act, 1944.\nthemselves have been needing tais help,\nand 1 want to submit, in all earnestness,\n4. Guardianships (Refugee Children)\nthat that is the test they should apply to\nAct, 1944.\n5.-Supreme Court of Judicature\nthis problem. 1 have to contess that I\n(Amendment) Act, 1944.\ncannot find anything in the record of\nachievement of the Inter-Governmental\n6. Disabled Persons (Employment)\nAct, 1944.\nCommittee to justify any very great con-\n7. House of Commons Disqualification\nfidence that they are alive to the urgency\n(Temporary Provisions) Act, 1944.\nof this problem, and that the action they\n8. Income Tax (Offices and Employ-\nhave taken is commensurate with the\nments) Act, 1944.\nneed.\nMr. Silverman: Will the hon. Member\nSUPPLY\nnot agree that, within the limits which\nthey exercise, they do show a sense of\nAgain considered in Committee.\nurgency, and that, after all, we should\n[MAJOR MILNER in the Chair]\nbe very grateful to them?\nQuestion again proposed:\nMr. Lipson: Surely the answer to that\nThat a Supplementary sum, pot exceed-\nis this-that, if the limits of their powers\ning £53.873. be granted to His Majesty, to\nare too narrow or too confined, the Com-\ndefray the charge which will come in course\nmitee ought to say so, instead of saying\nof payment during the year ending on the\nthat they are able to deal with the pro-\n31st day of March, 1944. for the expenses in\nconnection with His Majesty's Embassies,\nblem, when they know they are not in\nMissions and Consular Establishments Abroad.\na position to do so,\nand other expenditure chargeable to the Con-\nsular Vote: certain special grants and pay-\nEarl Winterton (Horsham and Worth-\nments, including grants in aid: and sundry\ning): I gather that my hon. Friend is\nother services.\"\ncriticising my Ambasiadorial colleagues on\nMr. Lipson: I should like to make it clear\nthe Committee and myself-the represen-\nthat, in the remarks that I am making, I\ntatives of the United States and other\nam not concerned with personalities but\ncountries-when he talks of they.\" It\nwith a very great tragic human problem.\nis only in order to make the point clear\nI have to ask myself whether the machin-\nthat I have interrupted.\nery and the means we have taken to deal\nMr. Lipson: We are asked to vote a\nwith this problem bear a proper relation\nto it, and are adequate. This matter of\nsum of money towards the work of an\nInter-Governmental Committee. It is\nthe rescue of refugees is on my conscience,\nas I believe it is on the conscience of a\nonly right that we should ask, Are we\ngetting value for the money that is being\ngreat many people, and we in this Com-\nmittee have a very definite responsibility\nspent?; is enough money being spent?;\nand is the dividend in the shape of lives\nin the matter.\nbeing saved adequate?\nTherefore I would say this. It may be\nWhereupon. the GENTLEMAN USHER OF\nnecessary to conceal a great deal of the\nwork of the Committee, but many of us\nTHE BLACK Rop being come with a Mes-\nfeel that we are not in a position to esti-\nsage, The CHAIRMAN left the Chair.\nmate the value and the importance and the\nMr. SPEAKER resumed the Chair.\nseriousness of the work that this Com-\nmittee is carrying out, and we would like\na complete assurance as to whether the\nROYAL ASSENT\nmachinery is adequate for its purpose OF\nMessage to attend the Lords Commis-\nnot and, if it is adequate, that the\nsioners.\nmachinery is being used to the full so that\nthe object in mind may be achieved. We\nThe House went; and having returned-\nwould also like an assurance that the Com-\nMr. SPEAKER reported the Royal Assent\nmittee will not hesitate to use, if need be,\nto:\nunorthodox methods to try and save\nL Landlord and Tenant (Requisitioned\nhuman lives. We would also like it to\nLand) Act, 1944\nbe considered whether it is advisable to\n2. Courts (Emergency Powers) (Scot-\nsupplement the action taken by the Inter-\nland) Act, 1944\nGovernmental Committee by similar action\nRegraded Unclassified\n1477\nSupply:\nCommittee-\nHOUSE\nOF\nCOMMONS\nDiploments.\natc.:\nServices\n1478\nFMr. Lipson.]\nto that which President Roosevelt has\ncurrestances that have arisen since rgth\nfound it necessary to take in America-he\nMay, I think it was, when last the House\nwas apparently so impressed with. the\nor the Committee had any opportunity\nof discussing these matters. There have\nurgency of the problem that be thought\ninter-governmental machinery by itself\nbeen, since 19th May, great changes in\nEurope in the circumstances that these\nwas not sufficient. I would like further\nmeasures are designed to meet. John\nconsideration to be given to that matter.\nPehle, a member of the executive of the\nWe in this country are engaged in a\nbody in America charged with these\nlife and death struggle. That was true\nmatters, said the other day, quite\nwhen we began the war, it still is true, and\nrightly, that unless this job were\nwe can only hope to succeed in that\ndone within the next few months\nstruggle by God's help. If we go to God\nthere would be no job left to do.\nand ask Him to help us in our trouble,\nIt is in that spirit that the problem has\nI think we ought to put ourselves in a\nto be approached. I would like to direct\nposition to say to Him that we have\nthe attention of the Committee to some\nhelped those we were in a position to help.\nof the things that have in fact been hap-\nThat is the test which 1 would apply to\npening since May of last year, because,\nthe work of this Inter-Governmental Com-\nnot merely do things happen, but we gel\nmittee. Here are these hapless refugees,\nknowledge of them. I have a copy of a.\nfor whom we have a special responsibility.\ndocument which has reached London. It\nCan we honestly say. with a clear con-\nonly concerns Poland and I think It only\nscience, that impressed by the urgency of\nconcerns the Jews. May I, in passing,\nthe problem, by the importance of the\nmy that I speak in this matter as a Jew,\ntime factor, we have done everything that\nand as a Jew I would say at once that\nis humanly possible to save human lives?\nthis is by no means entirely a Jewish\nUnless we can give a satisfactory answer\nproblem-not by any means-and DO\nto that, I submit we have not done what\nJew, knowing the facts, would think that\nwe ought to have done. To do anything\nit was, or would lose any opportunity al\nless than the maximum possible in a prob-\npointing out that it was not,\nlem of this kind, is simply not good\nIt remains true, however, what the hon.\nenough.\nLady said, that it is very largely a Jewish\nquestion, and that among the refugess\nMr. Silverman (Nelson and Colne): I\nthe Jews are the only ones against whom\nwould like at once to dissociate myself,\nthe Nazis have declared a policy of com-\nand any organisation interested in this\nplete extermination, regarding them-as\nmatter with which 1 may be concerned,\nthey expressly say-as belligerent enemies.\nfrom any kind of criticism, implied or\ndo not quite know what they mean by\nexpress, direct or indirect, of the Inter-\nthat because, if the Jews were really\nGovernmental Committee. So far as I\nbelligerent enemies, I suppose the Geneve\nam aware its work is done with efficiency\nConvention would apply to them, and\nand urgency and in a spirit of co-opera-\ncertainly no attempt is made to make it\ntion to which no one who speaks with\napply. But the Nazis regard themselves\nany sense of responsibility, could fail to\nas making war upon them in the sense\npay carnest and sincere tribute. Nobody\nof rooting them out ulterly, in an en-\nwould pretend, however, that the work\ndeavour to solve what is sometimes called\nthey are doing is going to resçue all those\nthe Jewish question by the extermination\nthreatened by the evil thing that stalks\nin Europe of any Jews at all. That policy\nthroughout Europe to-day, I will have\nis to be resisted from outside, but it is\na word or two to say about that a little\nalso resisted from within, and I want\nlater on, but I thought it was right to\nto draw the attention of the Committee\nsay SO much at once, so that there should\nto some things that are happening. This\nbe no doubt about it.\nreport comes from the Jewish National\nCommittee, operating somewhere in\nWe are concerned to-day with a Sup-\nPoland, and it reached London in Febru-\nplementary Estimate and we cannot\nary of this year. In this report it is\nbring in and debate large issues of general\nstated-\npolicy. One can only deal with the new\n\" Last month we still reckoned the number\ncircumstances that have necessitated a\nof Jews in the whole territory of Poland as\nSupplementary Estimate at all, new cir-\n250,000 to 300,000. In a few weeks not more\nRegraded Unclassified\n1479\nSupply Committee-\nMARCH 1944\nDiplomatic. etc., Services 1480\nthan 50,000 of us will remain. In the last\ndeclaration was made of the intentions\nDIAMINE before death the reminants of Polish\nJewry appeal for help to the whole world\nof all the United Nations. That declara-\nThe blood sheil by 3,400,190 Jews in Paland\ntion was simultaneously made elsewbere.\nwill purso not only the Hitlerite bearrs but\n1 would suggest to the right hon. Gentle-\nall those who uttered words but did not act\nman that the time has come when a new\nto save a people condemned to extermination\nby the Hitlerite munteres. May this, per\ndeclaration might be made, It is doubtful\nhape our last voice from the ahym, reach the\nwhether it has very much effect, but it\ncars of the whole world.\"\nhas some, We do know that there are\nThere follow descriptions of mass murders.\npeople in Europe who listen. We do know\nIn the early days of November, uns. all\nthat there are people in Europe who re-\nthe Jews in the two large concentration camps\nact. We have information about heroic\nin Poland numbering 25.000 people, were\nacts done in enemy-occupied countries\ncompletely appibilated On Wednesday,\nwhich have the effect of actual rescue, and\nNovember 3nf. the 10,000 Jews in the camp\nof Trawniki were marched out, surrounded\nmany of us think that a new declaration\nand machine-gunned. The women and chil-\nmade now, a new joint warning by the\ndren were loaded into 30 lorries, transported\nheads of the Allied Nations, might be\nto the expcution place and mundered by\nheard. But not only a warning: a de-\nmachine-gunning. On Friday. November 5th.\nseveral thousand Jews were massacted in a\nclaration, that the satellite States could\nsimilar way in the district of Lublin\"\nhear, about the special measures they\nI am not going to weary the Committee\ncould take to stop the deportation, perse-\nwith a further recital of horrors, but there\ncution and killing of the Jews. A call\nare others of the same kind. They resist.\nmade in the name of the leaders of the\nOn the fourth day. the Jewish youth of\nUnited Nations to the peoples of Europe\nBialystok attacked their persecutors with hand-\nto do what they could to prevent mas-\ngrenades, fire bombs and a couple of machine-\nsacres, and the deportations preliminary\nguns, killing and wounding several hundred\nto massacres. It is not a thing which\nGermans and Ukrainiane The Germans\nbrought up, as in Warsaw, fielif-artillery and\nrequires any expenditure of money,\ntanks with 1,000 armed policemen and S.S.\nenergy or machinery; it is a declaration\nand many detachments of Chramiane They\nwhich, If it succeeded in saving any lives,\nset fire to the Chetin from all sides. The\nwould be justified. I think it is realised\nviolent fighting continued for eight days.\nthat the declaration that was made before\nAfterwards, the Jews set fire to. and destroyed\nthe autorious death-camp of Treblinka\nwas not altogether without effect. A\nin the region of Chelm-Labilin The Jews\nnew one made now might be very oppor-\norganized themselves into Agbring groups and\ntune indeed. Certainly the neglect of it\nattacked the Germans and Ukrainians, dis-\nwould be difficult to justify if there was\narming and killing the majority of them. They\nbarnt the gis-chambers and the cornitoria,\nonly the remotest prospect that the mak-\nand the survivors fled to the forests in the\ning of it would succeed in saving any lives\nneighbourhoud.\"\nat all.\nIt is against that kind of background\nI would like to say something about the\nthat We are considering to-day this Sup-\nparticular machinery that this Supple-\nplementary Estimate. It will grow as\nmentary Estimate is designed to pay for.\nmilitary defeat after military defeat is\nI have already said something about the\nforced upon the Germans. As they\nspirit in which the work of this Committee\nretreat. the last retiring German soldier\nis done, but they are charged with look-\nwill kill the last available Jew, What\ning after refugees, that is to say, look-\nproposals have we to make about that?\ning after people who have already escaped.\nI would like to make one or two practical\nIt is only when a man, woman or child\nsuggestions. I understand that the right\nhas succeeded in escaping from some-\nhon. Gentleman is going to reply. 1\nwhere or other that he or she comes under\ncannot ask him to give positive and con-\nsuch jurisdiction and powers as the Inter-\nstructive replies to all the things that I\nGovernmental Committee possess. Obvi-\npropose to suggest now, but I do hope\nonsly, that cannot be enough, because\nthey will be urgently and sympathetically\nthere ought to be some way of creating\nconsidered, and that if anything can be\nrefugees, of getting people out so that\ndone about it, it will be done without\nthey could acquire the status of refugees\nundue delay.\nand this machinery become responsible\nWhen the news first became known of\nfor them. I am inclined to think that it\nthis active initiation of the policy of com-\nwas along those lines that the United\nplete extermination, there was enacted in\nStates were thinking when they set up\nthis Chamber an historic scine, when a\nthe United States War Refugees Board.\nRegraded Unclassified\n1481\nsuppor\nCommittee-\nHOUSE\nOF\nCOMMON\netc.) Services 1422\n(Mr. Silverman\nmatters as I do, but I would invite him\nWe have been asked not to lalk too much\nnust earnestly Do look again at this aspect\nabout certain matters and nobody would\nof the question and make quice certain\ndream of doing so but people can be got\ntime our country does not take the second\nout, they are being got out, and some-\nplace; instead of the first place, which\nattempt ought to be made al active rescue.\nboth practical politics and our traditions\nIf the United States thought Il worth\nwould compel us to occupy,\nwhile to set up special Government\nI would like to see created in this\nmachinery alongside the Inter-Govern-\ncountry machinery parallel to the United\nmental Committee might it not be worth\nStates War Refugres Board. I would\nwhile to consider whether we, 100, ought\nlike to see it done in a large way, in such\nnot to set up parallel machinery in this\na way as would make it clear to the world\ncountry? I do not refer lo this by way\nthat we do recognise the heavy obligations\nof praise, censure or criticism of the\nwhich rest on our shoulders in these\nUnited States at all; I point to it as an\nmatters and that we do not intend to lag\nexample of the way in which one of our\nbehind anybody in the discharge of those\nprincipal Allies is attempting to meet\nobligations. I would like to urge con-\ntheir obligations when faced with exactly\ntinued and even closer co-operation with\nthe same problem. It was not a light\nthose bodies in the world which are\nthing for the United States to do. They\ncharged with the responsibility of practical\nhave not set up their Board merely for\nrescue wherever it is possible. Bodies like\nthe sake of adding machinery to\nthe World Jewish Congress and the\nmachinery. Presumably, there is a prac-\nNational Rescue Committee in Palestine\ntical function which that Board will carry\nare both actively engaged in such rescue\nout. If that is so is it not reasonable to\nwork as can be done. I would like to see\ninquire whether similar machinery might\na method evolved of associating bodies of\nnot be set up here to carry out the same\nthat kind with the Inter-Governmental\nkind of functions, which, 1 think, are dis-\nCommittee, with the State machinery,\ntinguished from the functions of the Inter-\nwherever it may be set up. concerning\nGovernmental Committee, in the way I\nitself with active rescue and organisation\nhave indicated?\nof rescue, A large number of people who\nare getting out are Stateless. They them-\nMay I say, in passing, that I am afraid\nselves might be organised and be in some\nthere is a growing feeling that the initia-\nway or other represented on these bodies,\ntive in these matters, the active urgency\nbecause nobody knows more about the\nof endeavour, is passing from London to\nmeans of rescue than they do. I need not\nWashington? I think that if there were\nsay any more about other matters which\nany justification for such a view it would\nhave been dealt with by my hon. Friend\nbe a very great pity, because we here\nthe Member for the Combined English\nhave a proud and long record of rescue\nUniversities (Miss Rathbone).\nof the victims of political- and religious\npersecution, extending over many cen-\nIn conclusion, may I repeal that the\nturies. It is one of our proudest tradi-\nurgency of this matter is extremé, that a\ntions; it is one of the things we stand for\nis literally true that those you save within\nin the world. Nobody pretends that we\nthe next few months will be the only ones\nhave ceased to stand for it, but there is a\nwho can be saved, since afterwards none\ntendency to push over the initiative in\nwill be left? Do not let us have it on our\nthese matters to the United States of\nconscience that there were people who\nAmerica. I think we ought to be careful of\nmight have been saved but who were not\nthat; we ought to resume the initiative\nsaved because we were not willing to take\nourselves. It is not merely in accordance\nfrom our other pressing obligations the\nwith our traditions to do so, but also\ntime, energy or machinery necessary to\nbecause we are 3,000 miles nearer the\nsave them. If the employment of that\nscene. I am not at all sure whether some\ntime, energy or machinery were to delay\nof the machinery we have here is not a\nvictory by a single day none of us would\nlittle cumbrous, whether the delay in con-\nask for it to be taken, but it is not correct\nsidering matters, reaching plans and\nto say that the only way of saving these\ncarrying them out is not longer than some-\npeople is by ensuring a quicker victory.\ntimes it might, be. I know that the\nAs defeat crowds upon defeat for the\nMinister feels as keenly about these\nenemy so massacre crowds upon massacre.\nRegraded Unclassified\n1483\nSupply: Committee-\nI MARCH 1944\nDiplomatic, etc., Services 1424\nThe very coming of victory may mean the\nbody can mention a topic like this with-\nextermination of the last remnants of the\nout exciting a good deal of feeling. But\nJewish people in Europe. Well, if that\nI always imagined that the Jews were\nsacrifice were necessary in order again to\nmembers of a religion and not of a raco,\nbring freedom to the world, let it be made.\nFor that reason it would surely be better\nBut no one is certain that it is necessary.\nfor us to talk about the Poles or the\nAt any rate, do not let it be on our con-\nGreeks, or any one else, and include the\nscience that there were any lives at all that\nJews in that. I have been in touch with\nmight have been saved that we neglected\nsome of the Polish organisations during\nto save.\nthe past week and I have heard some-\nLieut.-Colonel Sir Walter Smiles (Black-\nthing of the terrible atrocities committed\nburn): I intervene in this Debate only\nand the massacres, and I have heard of\nafter hearing the last two speeches. One\nthe gas chambers. I have believed what\nwould imagine that the only refugees in\n1 have heard to be true, although when\nthe world at present were Jews. Great\nyou hear it for the first time you would\npublicity is given to every atrocity against\nalmost imagine that it was far-fetched.\nthe Jews, and it is the feeling of many\nHowever, after hearing of these things\npeople in this country that to times the\nfrom peoples lips one believes, them to be\npublicity is given to the Jews in this\ntrue, even in 1944. But these people\nmatter as to members of other races who\nwere talking about the Poles that were\nare maltreated or murdered. That feeling\nmassacred: they were not talking about\nis springing up, and it would be just as\nthose of one religion. If we are to give\nwell for my hon. Friend the Member for\nrelief and help-and I am quite sure that\nCheltenham (Mr. Lipson) and my bon.\nevery penny the Foreign Secretary asks\nFriend the Member for Nelson and Colne\nfor would be agreed to without demur in\n(Mr. Silverman) not to forget that\nthis House-let us at any rate give to\nthe Relgians and the Greeks also, I get\nMr. Lipson: I did not mention the word\nletters from my own constituency, from\nJew once in my speech.\nthe Society of Friends I think it is, and\nthey tell me that the Belgians and the\nMr. Silverman: Perhaps the hon. and\nGreeks have suffered more than any one\ngallant Member opposite would do me the\nelse, I suppose nobody really knows,\ncourtesy of remembering that I expressly\nperhaps even the Foreign Secretary him-\nsaid in my speech very much what he is\nself hardly knows, who has suffered the\nsaying now,\nmost, but I am quite sure that when a\nSir W. Smiles: I apologise if I am\nDebate on this subject takes place it will\nwrong. but we shall see in Hansard later\nbe very much better for the newspapers\nwhat was said, At any rate, I think the\nto give publicity to the fact that we are\nhon. Member for Nelson and Colne men-\nvoting money for the Grecks, the Poles\ntioned some organisation for rescue work\nand the Belgians rather (han for those of\nin connection with Jewish refugees.\none religion only.\nMr. Graham White (Birkenhead,\nMr. Silverman: I expressly said that\nEast): Whatever the hon. Member for\nthis problem was not by any means an\nNelson and Colne (Mr. Silverman) may\nexclusive Jewish problem and that no Jew\nor may not have said in the coorse of\nthought it was so. I also said that, never-\nhis speech, there was one sentence which\ntheless, it was largely a Jewish problem.\nwill dwell in the memory of all who heard\nMiss Rathbone: I think I know all the\nit, and that was the striking phrase that\nif the sacrifice were necessary of all the\norganisations working on this problem,\nWe are perpetually stressing that it is not\nJewish lives lo order that liberty might\nonly a Jewish problem. Many non-Jewish\ncome again to the world, then let it be\nmade. Having made that statement, I\npeople have been, and are being,\ndo not think anyone would want to cavil\nvictimised, but the majority of the victims\nare Jews. Everybody knows that that is\nat anything else he might-bave said. He\nso. Hitler's policy of exterminating a\nexpressly said in his opening sentences\nthat he was not speaking for the Jews\nwhole people is confined to the Jews. They\nalone and, indeed, who would propose to\nare the principal victims.\nlimit this discussion to the question of\nSir W. Smiles: I expected to have a\nthe Jews? We are, in fact, living wit-\ngood many interruptions, because no-\npesses of a most repugnant phenomenon\nRegraded Unclassified\n1485\nSupply: Committee- HOUSE OF COMMONS Diplomatic, etc., Services 1486\n[Mr. White.]\nin history. We have enemies inspired by\nMembers, have not the responsibility: it\na fanaticism which apparently is even\nlies upon the shoulders of my right hon.\nstronger than any inspiration and effort\nFriend, and he himself must seek the best\nway out,\nwhich has been inspired by good pur-\nposes. In the last few weeks they have\nMr. Astor (Fulham, East): I am\nstated their intention to fight to the last\ngoing to back up the words spoken with\nman in this fifth year of war and then to\nsuch eloquence by the hon. Member for\ncommit suicide in large numbers. They\nEast Birkenhead (Mr. G. White). 1 am\nare inspired by the same fanaticism to\ninterested in the refugee question, and\nwreak their vengeance on anybody who\nin the Middle East I actually had to look\nwould prevent them.\nafter a very large refugee camp of\n1 would support the hon. Member for\nGreeks. 1 want to make one or two\nNelson and Colne in his suggestion that\npoints which I think are important. It\nmachinery, the counterpart of that which\nis very important to keep perfectly separ-\nhas been set up in Washington, might\nate the refugee question and Palestine.\nbe set up in this country if I did not\nWe were able to get enormous help in the\nbelieve that the right hon. Gentleman\nLebanon, Palestine and Egypt from the\nwho carries the responsibility in this\nlocal inhabitants because there was no\nHouse had not considered it an unwork-\nquestion of creating-\nable piece of machinery. I hope it might\nat least go forth from the House of Com-\nThe Chairman: I am sorry lo interrupt\nmons to-day that as we were all of one\nthe hon, Member but we cannot discuss\nmind when we passed the original Resolu-\nconditions in Palestine on this Vote.\ntion on this matter 50 there is no differ-\nMr. Astor: With great deference 1 will\nence of opinion among us to-day. We\navoid that point. I only wanted to skate\nMembers of the House of Commons are\nover it very briefly, because il has, to some\naware that there are some aspects of this\nextent. almost prejudiced the possibility\nterrible manifestation that it might be\nof getting Jewish refugees out of Eastern\nunwise to discuss. We realise that may\nEurope, and I think that, whatever may\nbe so, and we are consequently very\nbe people's feeling in the matter, it does\nguarded in anything we may my.\nnot in any way take away from the\nWhat we do want from the right hon.\nChristian duty to get as many of these\nGentleman is an assurance that nothing\nrefugees out as we possibly can If we\nwhich could conceivably be done to save\nneglect to do anything now which can\neven one life will be neglected. My hon.\npossibly be done, we shall curse ourselves\nFriend the Member for Nelson and Colne\nlater on for our short sightedness. In\nsaid that, as events march on, there may\nthe recent pamphlet of my right hon.\nin a few months be no problem of this\nFriend the Minister of Health it said there\nparticular kind to solve, but 1 am not\nwere not enough dentists in this country\nsure that I am as pessimistic as that.\nto provide treatment for all the children\nThere are events on the horizon which\nin need of it. 1 wonder how many Jewish\nwill make the satellite countries reflect\ndentists before the war-\nvery seriously as to their course of action\nThe Chairman: The hon. Gentleman is\nand it may well be, sooner rather than\nnow encréaching upon the Home Office.\nlater, that events will take place which\nThat matter does not arise here:\nwill make some of the satellite countries,\nwho are now holding down large popula-\nMr. Astor: I only wanted to suggest\ntions, consider very scriously whether\ncertain considerations which might in-\neven at this late stage they cannot do\nfluence a representative of that Commit-\nsomething which can be placed on the\ntee in his attitude towards refugees.\ncredit side of their balance sheet. I do\nEarl Winterfon (Horsham and Worth-\nnot know what can be done. The right\nhon, Gentleman may have some means\ning): I can give my hon. Friend the\nassurance that my opinion will not be\nat his disposal, and I emphasise that\nbiased by any of the matters he has men-\naspect of the affair. I only intervened\ntioned, one way or the other.\nbecause I wanted to express my convic-\ntion that we were unanimous in the\nMr. Astor: I very much regret that my\nmatter, There has never been any dif-\nnoble Friend is not going to be influenced\nference of opinion. We, as individual\nto some extent\nRegraded Unclassified\n1487\nSupply Committee-\nMARCH 1944\nInplamatic vic. Services 1488\nEarl Winterton: My hon. Friend is\nthe same tone as the bon, Member for\ntrenching on a very dangerous form of\nEast Fulliam (Mr. Astor). If I were not\nargument. I have no Ministerial respon-\nable to convince the Committee that this\nsibility, Ministerial responsibility rests\nis a caso of exceptional urgency I should\nwith my right hon. Friend opposite. 1.\nnot have (elt it worth while to listen to\nmerely represent his views,\nthe speeches already made. My first re-\nMr. Astor: I am very sorry if anything\nflection is that we are a highly fortunate\nI say may not be able to sway my noble\nbody of politicians to occupy the only\nFriend, but 1 hope I am still at liberty to\navailable place in Europe for a discussion\nmention certain considerations in which\non this subject. In this small island we\nhe may take an interest on reflection. I\nare separated from the mainland of\nhope we shall not follow the American\nEurope by a very narrow sea, and we\nsystem of setting up a special office, be-\nhave been able to escape the sense of\ncause all my experience is that these new\ndread, fear and horror which closer ac-\nmushroom Government Departments are\nquaintance with the problem has conveyed\nnever strong enough to deal with a really\nto people in various parts of Europe, This\nstrongly-entrenched Government Depart-\nis not really a Jewish question, though\nment.\nthe Jewish people are involved to perhaps\na greater extent than anyone else, There\nThe Chairman: The hon. Member is not\nare other refugees-Greeks, Yugoslavs,\nentitled to discuss the arrangements made\nBelgians, French, Norwegians and Danes\nby another country. Will he please con-\nhave been mentioned-many of whom\nfine himself to the subject matter of the\nhave found a home away from home and\nEstimate.\nmany of whom are here enjoying our hos-\nMr. Astor: With deference, Major\npitability, if it can be termed such.\nMilner, the hon. Member for Nelson and\nI regard it as a very great privilege for\nColne (Mr. Silverman) mentioned the\nMerobers of this House to be able to\npossibility of having some form of\ntend this offer and to make this mode\nseparate office. I do not want to go\nprovision of £50,000, envisaging a larger\nfurther than he did. I was only following\nexpenditure later on, to be applied to what\nup what he said on the purely practical\nis called operational expenditure, Opera-\npoint that it is not the best system of\ntional expenditure is very difficult to de-\norganisation to start a special body but\nfine, but it certainly means the making of\nto get a really high official in an existing\nprovision for the reception, maintenance.\nDepartment specifically charged with this.\ntransport and regulation of this very un-\nOn the question of what we can say to\nhappy traffic which is now taking place\nneutral countries, the principle has been\nsurreptitiously under clandestine arrange-\nadmitted that the satellite Powers can\nments, Many are escaping. They are\nwork their passage back. We have defi-\nleaving the areas of danger and coming\nnitely made a distinction between the\nwithin reach of a helping hand and what\ntreatment of Germany and the treatment\nwe are proposing is that at least £50,000\nof the satellites. We must make is abso-\nshall be available to extend that and to\nlutely clear that one of the factors influenc-\nmeet halfway those people who are fleeing\ning our treatment of the satellite Powers\nfrom the wrath of their enemies on the\nafter the war is their attitude towards the\nContinent and seeking salvation and sanc-\nrefugees within their borders. There is a\ntuary in this very fortunate country and\nwide divergence, and we should make il\nin other parts of the world.\nquite clear and explain to them that in\nI agree with the right hon. Gentle-\nour relief operations immediately after the\nman who is responsible for the Estimate\nwar, in any sanctions that we may im-\nthat this is not the end, but the beginning\npose, in our general treatment of them\nof a very large plan of salvation, in which\npolitically, this will be a factor which will\nwe are joined directly by the United\ndefnitely-influence our treatment of them.\nStates, who have committed themselves\nwant to reiterate what has been said,\nto the same financial extent as we have\nthis should go out from the-House of\ndone. I should like us not to be too\ncons as having been backed up by\nsqueamish about the nationality and the\ntives of every party.\nreligion of the people we are saving, T\ncafell (Gower): I should like\nis the anniversary of the patron saint\nhe same direction and in\nmy country. His name was David, but\nD\nRegraded Unclassified\n489\nSupply: Committee- HOUSE OF COMMONS Diplomatic, etc., Services 1490\n[Mr. Grentell.]\ntaken by us in this House and shared\nDavid originally was not a Welsh name.\nby our people, Do not let us be atraid\nDavid was a Jew, a lovable character, a\nto tell our people about these things. In\nbrave man and a human man, and the\nthis country I per cent. of our popula-\nDavid who became the patron saint of our\ntion is of the Jewish race. What is wrong\ncountry was equally lovable and equally\nwith the 90 per cent. that they should\nbrave. The oaths that we take, the\nnot be told? In Germany the percentage\nvows we offer in this House were origin-\nis also 1 per cent. We know what was\nally based upon a Jewish institution and\nwrong with the German Reich and the\na great Jewish character, who lived his\nGerman people. We must carry out our\nlife and died equally bravely as he had\nwork of charity, rescue and salvation re-\nlived. There is the problem.\ngardless of race, I hope that the Com-\n1 should like us to dismiss the priorities\nmittee will dedicate itself to-day, not\nin this matter. A Jew is no more entitled\nmerely by supporting this Vote, but by\nto sympathy in distress than anyone else,\ndoing and preparing to do something\nmuch more in the next six or twelve\nand I do not think anyone else says that\nmonths than we have done in this regard\nin the House, but it is a lamentable fact\nin the last two or three years. If this Vote\nthat millions of people are homeless in\nEurope. No one can predict the propor-\nis only a spur to gréater effort to help\nthese people towards personal security,\ntion of those who can get away from the\nwe shall have done a good day's work in\nareas of danger, but certainly there are\nthis Committee.\nareas where life is very uncertain, and\nthere is no object more worthy of human\nMr. Law: 1 am sure that my bon.\nsympathy than a hunted human being. I\nFriend the Member for Gower (Mr. Gren-\ndid some work in relation to the Sudeten\nfell) truly represented the views of the\nGermans in the time of Munich and 1\nCommittee when he welcomed the pay-\nwas privileged to conduct the two first\nment which it is proposed that we\nparties from Prague to Gdynia, It was\nmake towards the expenses of the In\nvery uncomfortable for me, but I will-\nGovernmental Committee. I am sure,\ningly incurred the risks and discomfort\ntoo, that he represented the views of hon\nand fatigue attendant upon those jour-\nMembers when he urged that the refuger\nneys.\nproblem should not be left only to the\nInter-Governmental Committee, but that\nI shall always remember the courtesy of\nwe should work at it in other ways cease-\nthe Foreign Secretary of those days.\nlessly until we can get some kind of solu-\nThere was no besitation at all, and on\ntion. The hon. Gentleman the Member\nthe direct applications that I made to\nfor Nelson and Colne (Mr. Silverman) re-\nhim sufficient sums were made available\nferred us back to the dark and hideous\nto send 400 people who were in immedi-\nbackground against which we have to con-\nate danger of their lives, They were\nsider this problem. 1 think he was quite\nGerman speaking people-there may have\nright to do so, He was right to impress\nbeen some Jews among them-and they\nupon us once again, not only the impor-\nwere in danger. On that journey I had\ntance of the problem, but its urgency. The\noccasion to go through Poland and I saw\nhon. Member made what was certainly a\nthe Polish ghetto. I, who had always\ndismal prophecy, and what may prove\nbeen sympathetic with the history of that\nto be a true prophecy. when he said that,\nrace, saw in a way 1 had never previously\nas defeat drew nearer Germany, so the\nwitnessed the limitations and hardships\nexcesses against the Jews would increase\nlong ago imposed on the Jewish commu-\nin intensity. That may be so, but I hope\nnity. There are people who have escaped\nthat il will not be so. T am more inclined\nfrom Hungary and other places, and if\nto agree with my hon. Friend the Member\nthere is anything we can do in Parliament\nfor East Birkenhead (Mr. Graham White)\nto help them we should do it,\nwhen he reminded us that as defeat drew\n1 congratulate my right hon. Friend\nnearer to Germany, so the satellite coun;\non the sympathy and understanding he\ntries would attempt to re-insure by tre\nhas shown. He is a worthy son of a\ning these unhappy people more de\nworthy father. This just gives him an\nand giving them the sanctuary who\nopportunity which is natural to him, and\nlack at the present time.\n1 believe that he will avail himself of it.\nThe hon, Member for Nel\nIt is an opportunity which will be fully\nasked me to consider van\nRegraded Unclassified\n1491\nSupply Committee-\nI MARCH 1944\nDiplomatic etc. Services 1492\nhe made, and, in particular, the possi-\nbility of making a new declaration which\nCheltenham and the hon Member for\nhe described, I think, as a call to the\nNelson and Colne stressed the fact, as it\nseened to them, that this must be so and\npeoples of Europe from the heads of the\nthat the Inter-Governmental Committee\nUnited Nations. Certainly that will be\ncannot be up to its job because the Presi-\nconsidered, but in the meantime I would\nremind the hon. Gentleman and my hon.\ndent of the United States has just\nrecently created the War Refugee Board.\nFriend the Member for East Fulham (Mr.\nI hope that I may be able to persuade\nAstor), who also touched upon the neces-\nmy hon. Friends, or to persondo the\nsity of giving warning, particularly to the\nCommittee as a whole, that that is a\nsatellites of Germany, that there has never\nfallacy, and that the fact that the War\nbeen any doubt about the attitude of\nRefugee Board has been set up in the\nopinion in this country and, indeed, of\nUnited States is not in any serise a\nworld opinion, to what has been going on\ncriticism of the Inter-Governmental Com\nin Europe under German rule and to the\nmittee.\npersecution of the Jews and the general\ntreatment of minorities and refugees. No\nMr. Silverman: No doubt the right hom\none in any of the satellite countries can\nGentleman will recognise that, when I\nbe in any doubt of the fact that the\nadvocated the setting up of machinery in\nBritish attitude and, indeed, the world\nthis country paralle) to the War Refugee\nattitude, towards them after the war is\nBoard of the United States. I Was not\nbound to be affected by the way they act\ndoing 50 in any way as a criticism of the\nin this matter of Jewish persecution. There\nInter-Governmental Committee\nThe\ncan be no doubt whatever of that, and,\npoint I was making was, that as the\nindeed, the satellite countries are now\nInter-Governmental Committee was\ngetting very serious warnings through the\ncharged with the fate of refugees after\nwireless, to which we must hope they are\nthey had become such, there ougly\npaying due attention. I have no doubt\nbe governmental machinery In prd\nthat the Committee will vote the Supple-\nthe Committee with the TOW material.\nmentary Estimate for this purpose, but\nmore than one of my hon. Friends have\nMiss Rathbone: I think we all must\nexpressed their feeling that what we are\nmake il clear that none of us were\ndoing in voting this money, and, indeed,\ncriticising the Inter-Governmental Com-\nwhat the Inter-Governmental Committee\nmittee when speaking al the War Refugee\ncan do, is not really sufficient for the\nBoard. The Inter-Governmental Com-\nproblem. I was, incidentally, glad that\nmitter, because it is inter-governmental,\nthe hon, Member for Nelson and Colne\nmust depend upon the actions of the\ndissociated himself from the criticism of\nGovernments represented upon it, and\nthe Inter-Governmental Committee which\ntherefore. both Governments should have\nthe hon. Member for Cheltenham (Mr.\ntheir own separate maddinery In dealing\nLipson) made earlier. I am sure that that\nwith the work. Such machinery would\ncriticism was not in any way justified\nsupplement and not supersedo the Inter-\nand that the Members of the Committee\nGovernmental Committee-\nare treating this matter with just the\nMr. Law: I am afraid that I must have\nseriousness and sincerity which the hon.\nexpressed myself badly. and I apologise\nGentleman himself would require.\nto hon. Members and to the Committee\nMy hon. Friend the Member for the\nfor doing so. I did not really mean to\nEnglish Universities (Miss Rathbone)\nimply that they had said that the in-\ntook the same point of view as the hon,\nstitution of the War Retuge Board was\nMember for Cheltenham. She, too, felt\na criticism of the Inter-Gove remental\nthat the machinery of the Inter-Govern-\nCommittee. but I did nead to imply, and\nmental Committee was not enough. She\nI think it is clear that what I am going\ncompared it to a stage coach when what\nto say now is a true representation of\nshe wanted was a Rolls Royce. She\nwhat they said, that, in their view. the\ncriticised the smallness of the present\ninstitution of the War Refugee Board\nof the Committee in London and\nshowed that there was a gap which had\nfrom the size of the office and\nto be filled and which the Intertiover\nat of typists the theory that the\nmental Committee was not filling, 11\nmental Committee was not\nnot think that even that criticism is\nShe, the hon. Member for\naltogether justified.\nD :\nRegraded Unclassified\n1493\nSupply:\nCommittee--\nHOUSE\nDiplomatic\n1454\nMr. Lipson: Did not the right hon.\nGentleman himselt say that the work of\nsuch a body in this country, here la\nthe Inter-Governmental Committee Was\nalready a Cabinet Commider\nnot suiticient by itself to deal with this\nwith these matters, and HER\nproblem?\nCommittee has at its dispo-al aa relabis\ntrative >tall in the form of No ki Que\nMr. Law: Yes, Sir, and it the hou.\nDepartment of the Foreign Office\nMember nad had a little more patience In\nreally have the substance of who\nwould have tound that I was going to\nPresident of the United States has (ist\nrepeat exactly that argument. I spoke\ninstituted, in the -hape of the Wat\nearlier in the Debate about the necessity\nRefugeo Board, For constitutional\nfor international co-operation in these\ntrasins, I do not see how we could intice\nmatters, I think every Member\nthe -tructure of that Board, and, the\nwould agree that there are some matters\npractical reasons, I cannot or that we\nwhich can be handled far latter by an\nshould cain any advantage from imitating\ninter-governmental body of this kind than\nit.\nby any particular Government, but that\nMiss Rathbone: One thing that struck us\ndoes not at all rule out the necessity that,\nvery much was that the American Roard\nas well as international action, there has\nhad Il while-time executive director, who\nto be national action in these\nwas stiretly in tench with three Socre-\nFor that reason, His Majesty's Govern-\ntaries of State and had diretaces to the\nment welcomed most heartily the\nPresident. Has the Refugee Department\ninstitution of the War Refugee Board in\nof the Foreign Office access to Ministers\nthe United States, and We shall be willing,\nand to the Prime Minister in the sume\nand indeed anxious, to give that War\nway?\nRefugee Board, as a part of the United\nStates administration, our very warmest\nThe Chairman: We cannot en into the\nsupport and sympathy. We are working\ndetails of this organization, The rivid\non all these matters in the closest\nhom. Gentl-man Ins said quite sufficient\nrelations with the United States adminis-\nabout it.\ntration, I do not know whether it is\nMr. aw: Micht I an-wer, in a sentence,\ngenerally known among hon. Members\nwhat the hear, Lady has askid? We have\nthat we have recently sent instructions to\nreally got exactly what who wants. We\nevery one of our missions abroad likely\nhave a full time administrative staff, not\nto be involved in rolugeo matters that\nin the persons of -ingle directors, but in\nthey should seck out and collaborate with\nthe shape of the staff of the Refusers\ntheir American opposite numbers YYYY\nDepartment of the Foreign Office That\nrefugee matters to the fullest extent in\nstaff is directly re-ponsible to my right\ntheir power.\nhon. Friend and through him, to the\nI know that I cannot go very far in\nCabinet Committee, I do not think there\ndiscussion of the War Relugee Board\nreally i- the practical difference that some\nwithout transgressing the Kuang which\nhon. Members imagine there to be.\nyou have given, Major Milner. On the\nI do not think Hate were any other\nother hand, there has been such a great\npoints misel in the Debate. T think the\ndeal said about the War Retugee Board\nCommittee has made it abundantly clear\nand so many appeals have been made to\nden il want- Ce- work of reserve for these\nthe Government here to institute a similar\ninfortunate people to be proceeded with\nbody in this country that I hope 1 may,\nwith the utimet possible visour and dis-\nwithout getting into trouble, just touch\npatch. I can Jesufe the Committee that\nupon that aspect of the matter. I du not\nItis Maje-ty's Government are prepared In\nthink that hon. Members who have raised\nd., everything they possibly can to Ind a\nthe question ot the Joint Refugee Board\nsolution of this problem, in co-operation\nquite realise the constitutional difference\nwith other mations where that is necessary,\nbetween this country and the United\nand individually as a Government where\nStates. Under our system of ministerial\nthat is possible.\nresponsibility it would, in fact, be impos-\nsible for us to institute an independent\nQuestion put, and agreed In,\nbody which would control Ministers and\nResolyed:\nheads of other Departments outside it;\nthat a Supplementary\nin fact, there is not the same need for\nbe granted to\nRegraded Unclassified\n1495\nGivil Estimates\nI MARCH 1944\nCivil Estimates\n1496\nthe charge which will come in course of pay.\nCLASS VI.\nment during the year ending on the 31st day of\nMarch, 1944, for the expenses in connection\nMINISTRY OF AGRICULTURE AND\nwith His Majesty's Embassies, Missions and\nFISHERIES\nConsular Establishments Abroad, and other ex-\npenditure chargeable to the Consular Vote:\n4. -- That a Supplementary sum, not exceed-\ncertain special grants and payments, including\nIng (10, be granted to His Majesty. to defray\ngrants in aid; and sundry other services.\"\nthe charge which will come in course of pay-\nment during the year ending on the 31st day of\nMarch, 1944. for the salaries and expenses of\nCLASS V\nthe Ministry of Agriculture and Flaberies, and\nof the Royal Botanic Gardens, Kew, including\nOLD AGE PENSIONS\ngrants, grants in aid and expenses in respect\nResolved:\nof agricultural education and research, eradica-\ntion of diseases of animals, and improvement\n\" That a Supplementary sum, not exceeding\nof breeding, etc., of live stock, land settle-\n£150,000, be granted to His Majesty to defray\nment, improvement of cultivation, drainage,\nthe charge which will come in course of pay-\netc., regulation of agricultural wages, agricul-\nment during the year ending on the 31st day\ntural credits, and marketing: fishery organisa-\nof March, 1944. for the payment of Old Age\ntion, research and development, control of\nPensions, pensions to blind persons, and for\ndiseases of fish, etc.; and sundry other services\ncertain administrative expenses in connection\nincluding certain remanet subsidy payments.\"\ntherewith.\"\nDEPARTMENT OF AGRICULTURE FOR\nResolutions to be reported upon the next\nSCOTLAND\nSitting Day; Committee to sit again upon\n5. TL That a Supplementary sum, not exceed-\nthe next Sitting Day.\ning (8 520. be granted to His Majes'y, to defray\nthe charge which will come in course of pay-\nment during the year ending on the yet day\nof March, 1944. for the salaries and expenses\nREPORT [IIth February]\nof the Department of Agriculture for Scotla\nincluding grants for land improvement,\nResolutions reported:\ncultural education, research and marketing, es\npenses in respect of regulation of sericultural\nCIVIL ESTIMATES, SUPPLEMENTARY\nwages. certain grants in aid. and remanet sub-\nESTIMATE, 1943\nsidy payments.'\nSTATE MANAGEMENT DISTRICTS\nCLASS II\nb. That a supplementary sum, not exceed-\nDOMINION SERVICES\ning (10, be granted to His Majesty. to delray\n1. \" That a Supplementary sum, not exceed-\nthe charge which will come in course of pay-\ntng (10. be granted to His Majestv. to defray\nment during the year ending on the list day\nof March, 1944. for the salaries and expenses\nthe charge which will come in course of pay.\nof the State Management Districts, including\nment during the year ending on the 31st day\nthe salaries of the central office, and the cost\nof March, 1944. for sundry Dominion services,\nof provision and management of licensed\nincluding certain grants in aid, and for es-\npenditure in connection with Ex-Service Men\npremises.\"\nCLASS X\nin Eire, and for a grant in and to Eire in\nrespect of compensation to transferred\nMINISTRY OF AGRICULTURE AND\nofficers.\"\nFISHERIES (WAR SERVICES)\nDEVELOPMENT AND WELFARE (SOUTH\n7: That a Supplementary sum, ent EX-\ncreding (10, be granted to Ills Majesty, to\nAFRICAN HIGH COMMISSION\ndefray the charge which will come in crigine of\nTERRITORIES)\npayment during the year emiling on the just\n2. That a Supplementary sum, not exceed\nday of March, 1914. for the cont of the war\nservices of the Ministry of Agriculture and\n(20,800, be granted to Hh Majesty to detray\nFisheries.\"\nthe charge which will cume in course of pay.\nment during the year ending on the fint day\nMINISTRY OF AIRCRAFT PRODUCTION\nof March, 1944. for the development of the\nresources of the South African High Com-\n8. That a Supplementary sum. not ex-\nmission Territories and the wellare of their\nceeiling (to, be granted 147 His Majesty, to\npeoples.\"\ndefray the charge which will cous in en une of\npaym- nt during the year ending in the LINE\nCLASS V\nby nt March, 1941. for the salaries and ex-\nprives of vise Mini-try of Aircraft de Dear\nSUPPLEMENTARY PENSIONS\nMINISTRY OF FUEL AND POWER\nThat a Supplementary sum. not incred-\n20,000, be granted ... 11b Majoriv, to\n9. IN That is Supplementary pame, not\ncharge which will come for course of\ncerding (10 be granted to His Majesty, to\nting the year ending on the 31ml\ndefray the charge which will CLUBIP in course\nfor the payment of Supplement\nAll payment Juring the-year ending on the\ncertain persons in receipt nl\n31st day of March, 1944, for the salaries and\nor Willows\" Pensions.\nexpenses of the Ministry of Fuel and Prover\nRegraded Unclassified\n1497\nCivil Estimates\nHOUSE OF COMMONS\nIndia Bill [Lords]\nMINISTRY OF HEALTH (WAR SERVICES)\n1498\n10. That a Supplementary sum, not ex-\nand other non-effective annual allowances,\nadditional allowances, gratuities, compassion-\ncoeding 610, be granted to His Majesty, to\ndefray the charge which will come in course\nate allowances and supplementary pensions in\nrespect of civil empoyment.\nof payment during the year ending on the\ngist day of March, 1944, for the cost of the\nCLASS I\nwar services of the Ministry of Health.\"\nTREASURY AND SUBORDINATE\nMINISTRY OF HOME SECURITY\nDEPARTMENTS\n11. \" That a Supplementary sum, not ex-\n18. That a Supplementary aum, not ex-\nceeding (10, be granted to His Majesty, to\nceeding (6,030, be granted to His Majesty, to\ndefray the charge which will come in course\ndefray the charge which will come in course\nof payment during the y, ending on the\nof payment during the year ending on the\njist day of March, 1944. fo. be salaries and\n31st day of March, 1944. for the salaries and\nexpenses of the Ministry of Howe Security.'\nother expenses in the Department of His\nMajesty's Treasury and Subordinate Depart-\nMINISTRY OF SUPPLY\nments, and the salaries and expenses of certain\nMinisters appointed for special duties.\"\n12. That A Supplementary sum, not ex-\nceeding (10, be granted to His Majesty, to\nResolutions agreed to.\ndefmy the charge which will come in course\nof payment during the year ending on the\njust day of March, 1944. for the salaries and\nexpenses of the Ministry of Supply. including\nINDIA (ATTACHMENT OF STATES)\nthe expenses of the Royal Onlimnce Factories.\nBILL [Lords]\nMINISTRY OF WAR TRANSPORT\nOrder for Second Reading read.\n13. That a Supplementary sum, not ex-\nThe Attorney-General (Sir Donald\nceeding (10, be granted to His Majesty, to\nSomervell): I beg to move, That the\ndefray the charge which will come in course\nBill be now read a Second time.\"\nof payment during the year ending on the\njust day of March, 1914. for the salaries and\nThis Bill is concerned with the parts\nexpenses of the Ministry of War Transport.'\nIndia known as Kathiawar and Gujen\nMINISTRY OF WORKS (WAR SERVICES)\nin which, together with Inrer Indian States\nwith rull administrations, there are 7 very\n14. That A Supplementary sum, not PS-\ncreding (10, be granted to His Majesty, to\nlarge number of small, and in some cases\ndefray the charge which will cure in course\nvery small areas described as States,\nof payment during the year ending un the\nthough I think it would probably be more\n31st day of March, 1944 for the cost of the\naccurate in the use of language to describe\nwar services of the Ministry of Works.\"\nthem as estates. They are scattered.\nDEPARTMENT OF AGRICULTURE FOR\nTheir number is about 400 and the total\nSCOTLAND (WAR SERVICES)\npopulation is some 800,000, Forty of\nthem are less than a square mile in area,\n15. That a Supplementary sum. not\nconling Liv. be granted to His Majesty. fri\nand more than half are about the size of\ndefray the charge which will come in course\nan ordinary rural parish-seven, eight or\nof payment during the year ending on The\nnine square miles. The problem as to\njist day nf March, 1014- hir the par of the\nbow these areas can best be administered\nwar services of the Department of Agriculture\nfor Scottant.\"\nso that those who live in them may have\nCLASS Il\nthe advantages in such matters as educa-\ntion, health services, communications.\nIMPERIAL WAR GRAVES COMMISSION\nand su on which individually owing, as\nHr. That a Supplementary suin. - PM\nthe House will see, to the size of the areas.\ncerding 1,90% for grand DI His to\ndelner the charge which will an -----\nthey camed of conree provide for dont\nof payment thring the year ending the\nselves, has engaged for sume years the\n301 die - - March, 1111. for emplo\nadention of the Viceroy in his capacity\nand expenses 1.1 The Inderal War - Com\n- Crown representative,\nmission, inc inling of Emi in the\nUnited Runglom and 4 27.01 must\"\nThe for submitting this 168 to\nCLASS VIII\nParfament is a rycent decision in the local\ncourt which is called the Court of\nSUPERANNUATION AND RETIRED\nJudicial Commissioner in which apr\nALLOWASCES\nfrom courts e-rablished by the\n17. That a supplimentary sure, BM ON\nrepresentative her Have small\nIn granted to n. to\nheart This Juli lat G\nEXM Pin charges who will TYTHE in LIBITS:\nof proment turing they year emilier on the\nCome Unit the Ht\n11.1 devent March MAL for Lanndation\nVision had been taking\n277\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nM\nDATE\nTO\nSecretary Morgenthau\nAPR 21 1944\nFROM\nMr. Pehle\nI am attaching herewith a copy of\nthe report of the War Refugee Board for April 10\nto 16, 1944.\nAttachment. st. in S\n278\nDevelopments during the week of\nApril 10 - 16, 1944\n1. STATEMENT ON AXIS ATROCITIES\nAmbassador Steinhardt has advised that the President's\nstatement of March 24 was publicized in the Turkish and\nBalkan press and on the radio, and that he has been in-\nformed it made a deep impression on the people of the\nBalkan and central European countries. It has been\nsuggested to Steinhardt by Bulgarian, Hungarian, and\nRumanian sources that the President's statement be broad-\ncast in all Slavic and European languages at least once\na day by the Algiers and American radio stations. Since\na great many people in the Balkan area do not have radios,\nSteinhardt also suggested that pamphlets containing the\nPresident's statement be dropped from Allied planes on\nbombing missions over Europe.\nThe British Foreign Office has advised Winant that on and\nsince the issuance of the British statement of March 30\nby Mr. Eden, similar in content to the statement of the\nPresident, the British have been taking action paralleling\nour own in the psychological warfare field by broadcasting\ntheir statement in all foreign broadcasts, particularly\nfor the purpose of having it come to the notice of the\nsatellite governments and their people.\n2. COOPERATION WITH OTHER GOVERNMENTS\n(a) Neutrals\n(i) Spain\nIn response to our specific plan of operations\nin Spain to further the evacuation of refugees to and through\nthat country, recently proposed to Hayes, the Ambassador\nhas informed us that he feels no such plan should be put\ninto effect until it becomes apparent that our efforts to\nstimulate the influx of refugees into Spain will render\ninsufficient the facilities now existing for their care.\nAccording to Hayes, the latter facilities in the form of\nBlickenstaff's organization are adequate to cope with\n279\n- 2 -\npresent problems and have the support of the Spanish\nGovernment, which Hayes believes would look with disfavor\nupon the plan outlined by the Board.\nWith respect to the rejection of certain refugees\nwho had applied for admission to Camp Lyautey, by the French\nauthorities, we have advised Ackermann to use his own\njudgment in the matter of pressing the French to admit\nthose rejected refugees who had been in Spain since prior\nto 1933. The French have made some concessions in their\npolicy regarding admissibility to Lyautey as a result of\nour representations and it is felt that it may be unde-\nsirable to press them further in this matter.\nIn an effort to induce the Spanish and Portuguese\nGovernments to grant asylum to additional refugee children,\ninstructions have been sent by the State Department to\nour Missions at Madrid and Lisbon, similar to the instruc-\ntions recently transmitted to our diplomatic representa-\ntives in Switzerland, providing for the issuance of 1,000\nimmigration visas to refugee children from France, who\narrive in Spain and Portugal on and after January 1, 1944,\nand before July 1, 1944.\n(ii) Portugal\nDr. Robert C. Dexter has accepted the appointment,\napproved by Minister Norweb, as the Board's Special Repre-\nsentative in Lisbon and as Special Attache to the Legation\non war refugee matters.\n(iii) Sweden\nAbout two months ago we were advised by Minister\nJohnson that, although the Swedish Government had been\nurged to make a public appeal to Germany to permit refugee\nchildren to come to Sweden from Poland, it had not taken\naction on the ground it was clear that Germany would reject\nsuch an appeal, if made. We subsequently received a report\nfrom London indicating that circumstances would appear\nto be favorable at this time to encourage the Swedish\nGovernment to request Germany to release up to 20,000\n280\n- 3 -\nrefugee children of all nationalities. Accordingly, we\nhave drafted a cable to Johnson which is pending at State,\nasking him to approach the Swedish Government and request\nthat it take such action. We are pointing out to Johnson,\nfor the information of the Swedish Government, that such\nan appeal should not now prejudice the possibility of\nrefugees escaping unnoticed, a fear previously expressed\nby the Swedes, since the evacuation of refugees from Den-\nmark has now been completed, and stating that we would\nundertake to meet the Swedish request made in this connec-\ntion in 1943 with respect to assurances as to the eventual\nevacuation of the children from Sweden, the delivery of\nadditional foodstuffs for their assistance while in Sweden\nand the furnishing of financial assistance to aid in their\nmaintenance while there.\n(iv) Turkey\nOn April 7 the Bulgarian \"S.S. Maritza\" arrived\nat Istanbul from Constanza with 244 Jewish refugees.\nTurkish authorities agreed to permit this group to land\nand have furnished them with rail transportation to\nPalestine although, according to Steinhardt, only a few of\nthe refugees had Turkish visas and Palestine certificates.\nWe have also received word from Steinhardt that the \"S.S.\nBellacitta\" was expected to sail from Constanza on April 9.\nThe Turkish Ambassador has advised us that it is\nhis understanding that his government is no longer in-\nsisting upon a guarantee to replace the \"S.S. Tari\" in the\nevent of loss with & passenger vessel but that it will\naccept a guarantee of & cargo ship. The governments of\nSwitzerland and Sweden and the Holy See have been asked to\nsupport the request of the International Red Cross for a\nGerman safe-conduct for the \"S.S. Tari.\" We have been\nadvised by our Mission at Stockholm that the Swedish\nMinister to Berlin has been instructed to support the IRC\nrequest for safe-conduct for this vessel. The Russian\nAmbassador at Ankara has informed Steinhardt that his\ngovernment is granting safe-conduct for the \"S.S. Tari.'\nAlthough the signing of the charter party for the \"S.S.\nTari\" should be delayed as long as possible until more\ndefinite word with regard to German safe-conduct is\n281\n- 4 -\nobtained, we are authorizing Steinhardt to use his own\njudgment in this matter and to charter the \"S.S. Tari\"\nwhen and if he deems it advisable.\nWe have received 8. communication from Steinhardt\nthat a member of the Swedish Legation at Ankara has\nexpressed the belief that a Swedish vessel, \"S.S. Barda-\nlanda\" now in the eastern Mediterranean, might be made\navailable to transfer refugees from Constanza to Haifa.\nSteinhardt stated that this ship could be used in addition\nto the \"S.S. Tari\" and requested that we approach the\nSwedish Government on the matter. The \"S.S. Bardalanda\"\nis one of the Swedish vessels engaged in the Greek relief\nprogram and we are cabling Winant requesting that he take\nup with British Government the use of this vessel since\nour previous efforts to obtain the diversion of Swedish\nvessels engaged in Greek relief were opposed by the British\nwho apparently did not wish to have any of these ships\ndiverted for refugee evacuation. If Winant obtains the\napproval of the British Government to the proposed use of\nthis vessel, he will then take up our request with the\nSwedish Ambassador in London, also asking the Swedish\nGovernment to obtain a German safe-conduct for the \"S.S.\nBardalanda.\"\nSteinhardt also advised that, since there\napparently were a sufficiently large number of refugees to\njustify the use of ships in addition to the \"S.S. Tari,\"\nand, since the obtaining of a German safe-conduct for the\n\"S.S. Tari\" is uncertain, that the JDC representative at\nLisbon should resume and attempt to conclude his negotia-\ntions for a Portuguese vessel. The JDC has cabled its\nrepresentative at Lisbon to this effect and we have asked\nNorweb and Dexter to give him all possible assistance in\nhis effort to obtain a Portuguese ship for evacuating\nrefugees from Rumania.\n(b) Yugoslavia\nAckermann has recommended that Saxon, who has just\nreturned to North Africa from Bari, be recalled to Washing-\nton at once to review the details of the refugee situation,\n282\n- 5 -\nparticularly the possibilities of rescue operations in\nand through Partisan territory. The Partisan representa-\ntives, according to Ackermann, claim to have done much\nalready in this direction but they are handicapped by\nlack of ships, supplies, and money.\n(c) India\nA report has been received from our Mission at New\nDelhi to the effect that the standing finance committee\nof the Indian Legislative Assembly has approved the pro-\nposal to pay India's contribution toward the administration\nexpenses of the Intergovernmental Committee. India has\naccepted the invitation to become & member government sub-\nject to approval by its Legislative Assembly. No reply\nhas as yet been received from the government to our\nMission's approach as a result of the instructions con-\ntained in the circular airgram of January 26. Our Mission\nbelieves, however, that the Indian Government intends to\nlimit its assistance in refugee matters to the payment\nof India's share of the administration expenses of the\nIntergovernmental Committee.\n(a) Latin American Countries\nIn an endeavor to induce the Latin American Republics\nto give assurances to Switzerland similar to those we have\ngiven by means of the instructions issued to the U. S.\nConsular offices in Switzerland regarding the issuance of\nimmigration visas to refugee children arriving in Switzer-\nland, cables have been despatched to our Missions in Brazil,\nPanama, Cuba, Dominican Republic, Colombia, Peru, Chile,\nUruguay, Mexico, Costa Rica, El Salvador, Guatemala, Hon-\nduras, Nicaragua, Ecuador and Paraguay, requesting that\nthe governments of these countries give such assurances\nto the Swiss Government. Those Latin American governments\nwhich do not have consular representatives in Switzerland\nqualified to issue visas are being advised that U. S. Con-\nsular offices are prepared, if they so desire, to issue\nsuch visas on behalf of the respective Latin American govern-\nments. We are also advising the Latin American governments\nthat the Special Representative of the War Refugee Board\nattached to the American Legation at Bern will be pleased\n283\n- 6 -\nto cooperate with the diplomatic and consular offices\nand the governments of the Latin American Republics.\n(e) Canada\nIn an effort to obtain action by the Canadian Govern-\nment parallel to that taken by this government, we have\ncabled the Embassy at Ottawa asking that the appropriate\nofficials of the Canadian Government be advised of the\ninstructions which were recently issued to United States\nConsular offices in Switzerland, authorizing the issuance\nof 4,000 immigration visas to refugee children arriving\nin Switzerland with the view of facilitating by such\nissuance the escape of additional refugee children to\nSwitzerland and suggesting that the Canadian Government\ntake similar steps with regard to 1,000 children. Canada\nhad previously expressed its willingness to accept 1,000\nrefugee children from France.\n3. SPECIAL PROJECTS\n(a) Internees in Occupied Europe holding Latin American\nPassports.\nReports from Switzerland indicate that 238 Jews who\nhad been interned at Vittel have been evacuated to an\nunknown prison. This was apparently done upon the ground\nthat they possessed only accommodation passports issued\nby certain Latin American countries and consequently they\nwere not eligible for exchange for German citizens in\nLatin America. Reports were also received that the Span-\nish Government had been requested by the Germans to inquire\ninto the validity of the Latin American passports held by\nthese persons and that the Latin American governments had\ndenied responsibility. The private agency making these\nreports stated that only by assuring the Germans that àn\nexchange is being prepared for these people could they be\nsaved. We have cabled Harrison that it is essential that\nGerman doubts as to whether these persons are exchange\nmaterial must be promptly and effectively dispelled and we\nhave asked him to request the Swiss to use their good\noffices to inform the Germans that this government is\n284\n- 7 -\nundertaking discussions with Latin American countries for\nfurther exchanges of Germans in the western hemisphere\nfor persons in German-controlled territory; that this\ngovernment considers all internees who were at Vittel to\nbe eligible for such exchange and that the Germans should\nbe advised that in the meantime we expect these persons\nto be accorded the same treatment which Germany expects\nto be accorded to her citizens in the western hemisphere.\nCables to our Missions in Costa Rica, Ecuador, El\nSalvador, Haiti, Peru, Nicaragua, Venezuela, and Paraguay,\nhave also been despatched. We are asking that these\ngovernments be asked to give their approval to this\ngovernment's approaching the German Government through\nappropriate channels with a view to initiating such ex-\nchange negotiations. We also are requesting these Latin\nAmerican governments to themselves approach the German\nGovernment through the protecting power with the demand\nthat all persons claiming their citizenship on the basis\nof passports or consular documents be accorded the same\ntreatment as that given to prisoners of war under the\nGeneva Convention.\nWe have also cabled our Embassy in Madrid requesting\nit to report to the Spanish Government our vital interest\nin this matter and the pending discussions with the Latin\nAmerican countries regarding a further exchange of civi-\nlians with Germany, setting forth the position of this\ngovernment in the matter and requesting the Spanish Govern-\nment to act at once to correct the impression which may\nhave been created in Germany that there is & lack of\ninterest on the part of the Latin American countries in\nthe treatment of these persons who hold documents issued\nin the names of such countries.\nWe have also asked both the Swiss and Spanish Govern-\nments to make every effort to have the 238 persons, removed\nfrom Vittel, returned thereto.\n285\n- 8 -\n(b) Jewish Labor Committee Program for Evacuations\nfrom France.\nUpon the recommendation of the Board, a license was\nissued to the Jewish Labor Committee permitting its repre-\nsentative in Portugal to carry on relief and evacuation\noperations in enemy territory. An initial remittance of\n$10,000 was authorized to begin operations designed to\nrescue persecuted persons from France.\nIntruce\n286\nEMBASSY OF THE\nUNITED STATES OF AMERICA\nBuenos Aires, Argentina,\n14547\nApril 21, 1944\nSubject: Situation in Argentina as regards Relief and\nRescue of Jews in Europe\nThe Honorable.\nThe Secretary of State,\nWashington.\nSir:\n1/\nI have the honor to transmit herewith & memorandum\nprepared by Mr. John F. Griffiths of the Embassy staff\nin which an attempt is made to reply to the inquiries set\nforth in the fourth paragraph of the Department's circular\nairgram of January 26, 7 p.m.\nIn brief, it may be said that the consensus of\nopinion among persons and organizations interested in\nthe rescue and relief of Jews is that as long as the\npresent Argentine governmental regime remains in power\nit will be useless to look to the Argentine authorities\nfor any assistance whatsoever in reaching a solution of\nthe problem.\nEnclosure:\nRespectfully yours,\nmemorandum\n840.1\n13/ Edward L. Reed\nKIR:wrd\nTo Department-in original.\n287\nAir Mail\n(Enclosure No. 1 to despatch 14547\nof\nfrom Buenos Aires\nCONFIDENTIAL\nregarding relief and rescue of\ndons in Europe.)\nMEMORANDUM\nTo\n1 Mr. Reed\nApril 19, 1944\nFrom\n$ Mr. Griffiths\nSubject 1 The Existing Situation in the Argentine with\nrespect to Jewish Refugees and Rescue Work\nAs is naturally to be supposed, the local organizations\ninterested in cooperating with UNRRA and other established\nagencies for the resoue of victims of Nazi persecution are\nnow few in number, as the result of the early closure by\nthe June 4 Revolutionary Government of all organizations\nknown to harbor sympathies for the cause of the democracies.\nNo noticeable change in the official attitude has as yet\nmade itself felt.\nWith particular reference to organized efforts in\nfurtherance of the rescue of Jewish refugees, under 8.\nGovernment that enjoys no popular support other than that\ngrudgingly furnished by anti-democracy \"nationalists\" in\nwhose platform hatred for Jews holds a prominent place, I\ntake it there is no hope for anything but official hostility.\nThat hostility existed during the Castillo regime, expressed\nin the main by bureaucratic obstruction. To that sort of\nobstruction the present Government has added positive\nmeasures such as prohibiting public acts to raise funds,\nand refusing to permit the entry of Jews into the country.\nAn outstanding example of official obstructions is\nfurnished by the history of & project to bring to the Argen-\ntine 1,000 Jewish children under A years of age. President\nCastillo was with difficulty prevailed upon to issue a\ndecree permitting that humane act, but it was provided\nthat the decree should be mull and void after December 31,\n1943. Came the June 4 revolution and the military Government\nrefused to use its offices, through diplomatic action, to\nseek permission from the Nazi Government to remove the\nchildren from Germany. Came December 31, 1943 and 1,000\nJewish children who might have been rescued remained in\nGermany.\n288\n- 2 -\nIn the course of the past year and so far this year,\nexcept for the restricted purpose activities of the Sionists\n(Committee to Raise Funds for the Reconstruction of the\nPalestine), what Jewish rescue activities have been carried\non have been almost exclusively in the hands of two local\nJewish organizations and their activities have been limited\nto the raising and transmittal of funds. Those two organiza-\ntions are:\n1) Central Committee (Comite Central)\n2) Jewish Junta to Aid Refugees (Junta de Ayuda\nJudia a Refugiados)\nThe \"Central Committee\" is 8 nation-wide organization\nformed and operating under the auspices of the D.A.I.A.\n(Delegacion Argentina de Asociaciones Israelitas). Most of\nthe funds they are able to raise, principally from small\nbut widely popularized subscriptions and gifts, are adminis-\ntered for Jewish relief work through such agencies as the\nAmerican Jewish Congress, of New York, the Joint Distribu-\ntion Committee, also in New York, and the Relief Committee\nin Geneva. From time to time funds are sent directly for\nuse in individual cases, to help transport refugees from\nsome European port of exit to the Palestine, for example.\nThe \"Jewish Junta to Aid Refugees\" is a somewhat\ndissident organization, limited in number and made up\nmainly of a group of wealthy Jewish Argentines who insist\non determining the destination and use of the funds they\ncontribute. Funds raised by them since their establishment\naround the first of the current year total some 60,000 pesos.\nraised by the D.A.I.A. sponsored \"Central Committee\" and\nDuring the year 1943 approximately 460,000 pesos were\nRaise Funds for the Reconstruction of the Palestine\".\nupwards of 450,000 pesos were raised by the \"Committee to\nProbably it is known in Washington that D.A.I.A. with has\noffered, to the fullest extent local circumstances permit.\nclearly in good faith I believe, to cooperate\nUNRRA strictly limited by the hostile attitude\nThat of the cooperation, present political set-up, would be principally through\nthe American Jewish Congress as the intermediary.\nRegraded Unclassified\n289\n- 3 -\nPlans for future activities of the D.A.I.A. and of\nother agencies with similar objectives in the Argentine are\nnecessarily indefinite. Much will surely be done if there\ncomes a radical change in the Government which would doubt-\nless bring with it a more reasonable attitude toward the\nwhole question of immigration. Until such change is brought\nabout, relatively little can be done.\nOnce made possible by governmental acquiescence,\narrangements could at once be made to handle upwards of\n2,000 refugee families through the Jewish Colonization\nAssociation alone. That association has large land holdings\nin the provinces of Entre Rios, Santa Fe, La Pampa, Santiago\ndel Estero and Buenos Aires. I understand there are some\n200,000 hectares (about 300,000 acres) available for refugee\ncolonists. It 1s calculated that 100 hectares for each\ncolonist would be a proper distribution.\nThen, there is 8. sort of suburban agrarian society\nknown as Fomento Agrario with holdings in the province of\nBuenos Aires, about 90 kilometers from the Capital where\nthey established, some 5 years ago, a colony called Avigdor,\npeopled by German Jews. The concentration is on truck\nfarming, dairying and poultry raising and the normal distri-\nbution of land in this case is of 2 hectares for each\ncolonist. I have not been able to learn how much land they\nmight have available for refugees.\nIt is quite evident, though, that with governmental\ncooperation, and with the cooperation of other governments,\nin the course of a few years the Argentine could absorb\nmillions, not merely thousands. No conceivable political\nchange would make possible the willing acceptance of a very\nlarge proportion of Jews among those proposed millions,\nthough.\nJ.F.G.\n230\nany - 644\nCamberra\nThis telegram must be\nparaphrased before being\nDated April 31, 1944\ne municated to anyone\nother than & Government\nRec'd 10:25 Malls\nAgency.\n(BR)\nSecretary of State,\nWashington.\n48, April 21, 11\nThe Legation has sent a formal note to the mini-\nstor for External Affairs stressing the urgency of\nthe refuges question which has also been discussed\nformally with members of the Department of Internal\nAffairs (reference Department's tolegram grea yo. 40 of\nApril 14, 10 Mallo embodying & nessage from the War\nRefugee Board). & reply stating the position of\nthe Australian Government is premised at as early a\ndate as possible. Is however, anticipate considerable\ndelay as questions raised involve basic governmental\npolicy on sigration. The duties of the Inter-Govern-\nmental Committee referred to in By airgram No. A=6 of\nFebruary 17, 1 P.M. do not include var tim relief\nproblems. The immediate question met be referred to\nthe MinhatperMinister for the Interior who will probably wish\nto take it to babinet. The Prime Minister's absence\nwill doubtlees delay action, \" I believe approach\nto his is Washington sight be useful. For background\nI sugget my airgram 4-36 of December 6, 1943,\n1 DoBo be más svailable to the War Refugee Board.\nUNSIGNED\nno\n291\nHabana\nDated April 21, 1944\nKEN-57\nRec'd 8:20 p.m.\nThis telegram must be\nparaphrased before being\ncommunicated to anyone\nother than a Government\nagency. (NR)\nSecretary of State,\nWashington,\n401, April 21, 6 p.m.\nEmbassy lacks sufficient information concerning\nLaredo to approve scholarship although files reveal\nnothing unfavorable (Department's 344, April 18).\nHe is understood to be nephew of former President\nLaredo Bru,\nBARDEN\nBB\n292\nCABLE TO AMBASSADOR WINANT, LONDON, FROM WAR REFUGEE BOARD\nThe War Refugee Board requests that you transmit the\nfollowing message to Dr. Ignacy Schwarzbart, 45 Queens Court,\nLondon, W.2: QUOTE The question of the internees in Vittel\nTitmoning Liebenau Compiegne and Belsen-Bergen is given the\nclosest attention by the War Refugee Board, The United States\ngovernment has requested Switzerland and Spain to inform the\nGerman authorities that it is prepared to consider all internees\nin possession of Latin American passports 8.8 exchange material.\nSteps have also been taken to secure cooperation of Latin\nAmerican countries. Signed Goldmann, World Jewish Congress,\nNew York. UNQUOTE\nApril 21, 1944\n11:45 A.m.\nLSLesser:als 4/21/44\n293\nTELEGRAM SENT\nGMY\nApril 21, 1944\nThis telegram must be\nperaphrased before being\n1 p.m.\nSECRET\ncommunicated to anyone\nother than a Government\nAgency. (SC-00)\nAMEMBASSY,\nMADRID.\n1108\nFOR THE AMBASSADOR FROM WAR REFUGEE BOARD\nThe Spanish Government has on several occasions in the past,\nas the result of intercession by the Holy See whose humanitarian\nefforts on behalf of the persecuted refugees of Europe have resulted\nin the saving of thousands of lives, extended protection to groups\nof Sephardic Jews in Axis occupied areas and has intervened with\nGermany to accomplish their evacuation to Spain after release\nfrom Concentration camps.\nThe War Refugee Board has now been informed that 400 such\nSephardic Jews residing in Athens have recently beeh interned in\na concentration camp. To forestall deportation to Poland and almost\ncertain death it is vital that these Sephardic Jews be given Spanish\nprotection.\nYou are requested to approach appropriate Spanish officials\nto advise them of the situation of this group and to enlist the aid\n4. of the Spanish Government in the resoue of these refugees. You are\nauthorised to give full assurance to the Spanish Government that\nfunds will be available for the support in Spain of such of these\npersons as may be evacuated to Spain and that prompt action to speed\ntheir departure from Spain to otherppleaces of refuge will be taken.\nKindly advise the Department of all developments in this matter.\nThe foregoing has been repeated to Bern for Tittman.\nHULL\nWRB :GIN:KG\nWE\nSE\n4/20/44\n294\nPARAPHRASE OF TELEGRAM RECEIVED\nyear:\nThe American Imbassy. Madrid\nTO:\nThe Secretary of State, Washington\nDATE:\nApril 21, 1944\nNUMBER: 1397\nSECRET\nRepresentations have been made by the Bubassy to the\nForeign Office covering the points brought up in number 992\nNUMBER\ndated April 10 from the Department, including the return\nof two hundred and thirty-sight internees who have been\nmoved from Vittel according to a report. In number 1090\ndated April 19 from the Department & Foreign Official says\nthat although the Government of Spain has no information re-\ngarding the latter report it has given assurance that it will\nsttempt to learn the facts as seen as possible with a view\ntoward endeavoring to arrange for the return of these refugees.\nThat similar representations on the part of represente-\ntives of other American Republics concerned will support the\ndemarche of the Mubassy is assumed.\nHAYNS\nDORINPL\n4/26/44\n295\nORIGINAL TEXT OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmerican Legation, Stockholm\nDATED:\nApril 21, 1944\nNUMBER:\n724\nSECRET\nFROM WAR REFUGEE BOARD TO MINISTER JOHNSON AND OLSEN,\nAT STOCKHOLM,\nWar Refugee Board is gratified by the Legation's efforts\nreported in your 908 and 1209 of March 16 and April 8. Please\ncontinue watching over situation in Finland and, as soon as\nsign of danger appears for Jews and central-European refugees\nthere, urge the Swedish Government to carry out its informal\nundertaking reported in your 908, in line with its generous\nperformance in the case of Danish Jews, Please also take all\nappropriate steps to ensure that knowledge of Swedish readiness\nto admit these people is known in proper quarters in Finland,\nWhile the Finnish situation should be clearer to observers\nin Sweden than it is here, the Board is extremely perturbed\nover the possibility of a sudden deterioration which would\nmake rescue action impossible. It fully relies on you, how-\never, to see to it that action be taken before this group of\npeople is placed in jeopardy of their lives.\nThe Board notes that the informal undertaking reported\nin your 908 deals only with 113 #ewish refugees. This figure\ncorresponds, on the basis of the Board's information, to the\nnumber of Jewish refugees from Germany and Austria only. On\nthe basis of past events elsewhere, the Board considers that\nequal danger undoubtedly threatens many additional persons.\nAccording to the Board's information, Finland has 475 Danes,\n131 Italians, 192 Norwegians, 144 Poles, 172 refugees from\nother countries occupied by Germany and a local Jewish com-\nmunity of about 1500, of whom 940 have Nansen passports.\nClearly. in the event of increased German influence, local\nand refugee Jews and many non-Jevish refugees would be equally\nthreatened with Jewish refugees from Germany and Austria,\nYou are requested therefore to ask that Swedish undertaking be\nextended to cover all of these persons. You will note that\nthe total is less than half the number of the Danish Jews\naccorded refuge in Sweden,\nPlease keep the Board informed regarding result of your\naction.\nThis is WEB Stockholm Cable No. 3.\n296\nCABLE TO MINISTER JOHNSON AND OLSEN, STOCKHOLM\nReference is made to your 1235 of April 11, War Refugee\nBoard appreciates importance of Hellsted statement regarding\nextent of danger from Gestapo to many Germans, Swedes and\nothers. Board is charged with rescuing QUOTE the victims of\nenemy oppression who are in imminent danger of death UNQUOTE\nregardless of religion, nationality or stateless status.\nAccordingly. Board would warnhy welcome Swedish action to\nafford rescue to all groups in Finland which would especially\nbe endangered as a result of increased German influence.\nThe above, however, does not detract from Board's deep\nconcern about equal or greater danger threatening 113 Jewish\nrefugees from Germany and Austria and about 2600 others refesred\nto in our No.\nof\nBoard's attitude on this score\nis fully explained in aforementioned cable, and Board fully\nassociates itself with your representations reported in your\n1209 of April 8.\nAccordingly, the Board trusts that the Hellsted statement\nis not (repeat not) intended to modify the confidential assurance\ngiven by Boheman and reported in your 908 of March 16. Please\nobtain confirmation of mid assurance and, should you consider\nthat danger is imminent, please press for immediate action.\nCencerning Hellsted's remark that permission to refugees\nand others to enter Sweden would amount to discrediting Finnish\ngovernment, Board suggeste that you refer him and other Swedish\nofficials to Boheman statement reported in your 908 to the\neffect that the Finnish government has itself applied for the\nadmission of Jewish refugees.\nWith respect to the questions reported in your 1235,\nthe Board holds that all persons referred to in our of\nare in danger. It is prepared to make arrange-\nments for the evacuation from Sweden, as soon as practicalbe,\nof all persons, other than Swedes, who may be accorded refuge\nin Sweden, and for the maintenance in Sweden of such refugees\nwho cannot claim the support of their own governments.\nFor your information, Board has requested Gullion to\nreport on possibility using FideAduas escape-route to Sweden\nfrom German-held Baltic areas, particularly Lithuania. Board....\n297\n- 2 -\nwould appreciate your view and comments as to feasibility\nof such escape.\nReference made Olsen's No. 3. Board gratified by\nfavorable Swedish reaction to his appointment and approves\nstatements made to press.\nThis is WRB Cable No.\n4a\nApril 21, 1944\n11:45 none\n298\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nThe American Minister, Stockholm\nTO:\nThe Secretary of State, Washington\nDATE:\nApril 21, 1944\nNUMBER:\n1379\nSECRET\nAccording to Hellstedt Swedish visas have been authorized\nfor one hundred central European refugees now in Finland, as a\nstarter - please refer to number 1235 dated April 11 from the\nLegation. It was stressed by Hellstedt that visas are being\ngranted for humanitarian reasons since the refugees are panicky\nand not (repeat not) because the Government of Sweden believes\nthere is any danger.\nJOHNSON\nDCR:MPL\n4/22/44\nRegraded Unclassified\n299\n0013-990\nBorn\nThis telegram must be\nyarephrased before being\nDated April 21, 1944\ncommunicated to anyone\nother than a Government\nRec'd 5141 P.B.\nAgency. (32)\nSecretary of State,\nWashington.\n2580, April 21, 8 pollo\nMy telegram No. 2,320 of April 14.\nIt is reported from Budapest that Hungarian\nJewish Commissioner Indro declared there April 18\nthat while san are not new to be concentrated into\na ghetto they will be accommedated in districts where\nTerreristic aviation attacks are to be expected\".\nBangarian press early in April announced the evacus-\ntion of residential quarters in the exposed factory\nand other districts of the capital and its suburbs.\nMedrod statement which has been publicised in the\nGerman press apparently refers to such areas and is\nintended to make prepaganda use of the some 400,000\ndave now resident in the Imagarian capital.\nHARRISON.\nyour\n300\nRegraded Unclassifie\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAmerican Legation, Born\nTO:\nSecretary of State, Washington\nDATED:\nApril 21, 1944\nNUMBER: 2561\nCONFIDENTIAL\nDepartment's cable no. 1168 dated April 6 is referred\nto herewith.\nFollowing is substance of message from Blochlaine for\nAndre Mayer:\nHere there has been great interest in the President's\nstatement but I agree with you that an effort must be made\nto give it more effect. Swiss Government's official atti-\ntude concerning Jewish and non-Jewish refugees is as you\nstate, but at times there have been deviations from rules\nunder pressure of public opinion, thanks particularly to\ntireless efforts of organizations and individuals. There\nis such arbitrariness and secrecy involved, and it is impossible\nto secure exact statistics.\nFor time being, apparently, rejections are not number-\nour, principally because of few arrivals due to danger in\napproaching heavily guarded frontier and travel difficul-\nties, but restrictive policy undoubtedly has heretofore pre-\nvented arrival of great number of wretched Jews of both\nsexes who are now deported, imprisoned or dead and it still\nacts as deterrent on efforts to escape.\nVarious persons concerned with the problem have been\ncontacted by no and I believe it is useless to form new\ngroup here or stir up new movement here. There is being\ndone or tried everything possible that can be done within\nthe country.\nUnited Nations Governments, to expect radical change\nin situation, should 1. Refer to Government of Switserland\nto take over substantia, share of cost of upkeep of now\nrefugees. 2. Give Swiss Government formal undertakingthat\nwith this reasonable length of time after and of war all\nrefugees entering after given date will be removed.\nThe first point is of secondary importance. Point\nnumber two is essential and is very core of the question,\naccording to competent advice. We have reason to believe\ndueed to its frontiers either under pressure of opin-\nthat, with such guarantee, Swise Government could be in-\nion or of open its own accord. The time for such initiative to\nhave effect apprrrs ripe.\n301\nTELEGRAM SENT\nThis telegram must bE\nApril 21, 1944\nparaphrased before being\ncommunicated to anyont\n1 p.m.\nother than a Governmental\nagrody. (BR)\nU.S. URGENT\nAMERIBASSY,\nMOSCOW.\n980\nFOR TE AMBASSADOR FROM THE SECRETARY OF THE TREASURY\nI am most grateful for your help in securing a favor-\nof last night)\nablo reply. [Referense yours 1380 YORK\nPlease deliver this personal message to the People's\nCommissar for Foreign Affairs and the People's Commissar\nof Finance.\nUOTE I wish to express my sincere thanks for your deci-\nsion to have the experts of the Soviet Union associate\nthemsolves with the rinciples of the Joint Statement of\nexperts recommending the establishment of an International\nMonstary Fund. We regard the publication of the Joint\nStatement as of the greatest importance. It is further\nevidence that our two countries are determined to work\nside by side in the solution of international monetary\nand financial problems.\nRegraded Unclassified\n302\n-2- #980, April 21, 1 p.m., to Moscow.\nV.\nI an in accord with the circumstances mentioned in\nyour message. I assume you will instruct the technical\nfinancial delegation of the Soviet Union to associate\nthemselves with the principles of the Joint Statement.\nThey have already been informed of the substance of\nyour message. END QUOTE\nHULL\n(EGC)\nFIA :EGC I ja\n4/21/44\nRegraded Unclassified\n303\nNOT TO BE RE-TRANSMITTED\nSECRET\nCOPY NO\nOPTEL No. 128\nInformation received up to 10 ..M. 21st April 1944.\n1. NAVAL\nHome Watern: 18th/19th One of H.M. Destroyers and 2 E.T.B.'s\ndamaged It number of E -Boato suspected of mine-laying\noff ISLE OF IGHT. 20th/21st. Mine laying by aircraft oft HUMBER subpected.\nMediterranean Hostile shelling in ANZIO port area increased on 18th\nand 19th. 0.8. Destroyer Intercepted 4 E-Bosts West\nof ANZIO on 20th, one probably sunk, another damaged.\n2. MILITARY\nRussia hussians have repelled heavy German attacks on beldgehoad\nS.n. of NARVA and there has also been heavy fighting\nS.W. of STARNOPOL.\nBurma In ARAKAN our troops have captured a hill feature 3 miles\nN. of 30THIDAUNG. Jupanese attacks on our positions 25\nmiles S.M. of IMPHAL and near IMPHAL-TIDDIM road have been repulsed.\n3. AIR OPERATIONS\nTestern Front 20th Spcorted Fortresses and Liberators (9 missing)\ndropped 1640 tons through ground have on militory\nobjectives in Northern FRANCE.\nbombers attacked coastal :defences and military objectives*\nCAMBRAI in sirfields, 4 enemy aircraft dostroyed in air and 4 on ground.\nNORTHERN Medium FRANCE. Other aircraft bombed ctilway centros at CREIL and\ntons Of a and set fice to 3 epcort. vossels. 20th/21pt, aircraft\n5-chip convoy off FRISIAN ISLAND, Beaufighters sank A\n2,000 ship COLOGNE 379, railyay dopote PARIS LA CHAPELLE Intrudors 269, 36, OTTIGNIS\ndesp&tched: 196, LENS 175, CHAMREE 14, BERLIN d, Romber support 26,\nSea-mining 38, Loaflets 32.\nProliminary reports indicate 16 bombarn miscing, rosults apparently\naatisfactory.\naircraft flo over scattered inland 80085 without\ncoordination, About 30 enclay in YOKSHIRE, LONCOLNSHIRE and SUFFOLK, NORFOLK cousing and plight\n48062\napparent damage. Later 6 believed Intruders operated briefly over\nSUFFOLK. 2 enemy aircraft destroyed by night fighters.\nItaly 20th Fortrorses deopped 91 tons on ANCONA and 138 tons\nVENICE Hurbour. Liberators deopped 66 tons on bridge UDINE\nit F.JID, 41 tons on on MESTRE, 285 tons en доск at MALFALCONE and in\naren, 85 tons at TRIESTE.\nТИЗМТЛАЯ\nRegraded Unclassified\n304\nApril 22, 1944\nMr. White\nSecretary Morgenthau\nWould you please prepare a letter for my signature\nto Mr. Harriman along the same lines as the one which\nyou wrote to Ambassador Winant yesterday. Thank you.\nLetter in for Sig. 4/26/14\nRegraded Unclassified\n305\nApril 22, 1944\nMr. White\nSecretary Morgenthau\nWould you please let me know whether the lend-lease\non silver to India has gone through. I also would like\nto know how much silver, through one method or another,\nwe have let India have this year. Whitis them in 4/25/44\nRegraded Unclassified\nTREASURY DEPARTMENT\n306/4\nINTER OFFICE COMMUNICATION\nMA\nDATE Apr. 22, 1944\nTO\nSecretary Morgenthau\nFROM\nMr. White HDW\nSubject: Status of lend-leasing 90 million ounces of silver\nto India.\nWe have been informed by the State Department that an\nunderstanding has been reached with the British Government\nwith respect to the guarantees to be given for returning the\nsilver lend-leased to India to the United States Treasury.\nWe understand that the agreement with the British will be\nkept secret.\nAs soon as the British sign the formal documents, the\nState Department will advise the Foreign Economic Administra-\ntion to put through the requisition for lend-leasing the\nsilver to India.\nWe are keeping in close touch with both the State\nDepartment and the Foreign Economic Administration and will\nbe prepared to expedite the shipment of the silver to India\nwhen the requisition is completed.\nA total of 20 million ounces of silver was lend-leased\nto India in 1943 and 10 million ounces has been lend-leased\nto date in 1944.\nRegraded Unclassified\n307\nas\nApril 22, 1944.\nDear Mr. Batt:\nIn the absence of the Secretary, I as\nacknowledging your letter of April 20,\nwhich enclosed a carpor of Mr. Demald N.\nNelson's regular monthly report to the\nPresident on production performance against\nmaterials and equipment consitments of the\nThird Russian Protecol. I shall be very\nglad to bring your letter and the report\nto Mr. Mergenthan's attention as soon as\nbe returns to the effice.\nSincerely yours,\n(Signed) #. S. Klotz\nm\n1. 3. Nots,\nPrivate Secretary.\nMr. V. 1. 2019,\nVar Production Beard,\nVashington, D. e.\nKP/dbs\nRegraded Unclassified\n308\nORVICTORY\nBUY\n-\nmust\nWAR PRODUCTION BOARD\nWAR\nWASHINGTON, D. C.\nApril 20, 1944\nIN REPLY REFER TO:\nThe Honorable\nThe Secretary of the Treasury\nMy dear Mr. Secretary:\nThere is attached for your information\na copy of Mr. Donald M. Nelson's regular monthly\nreport to the President on production performance\nagainst materials and equipment commitments of\nthe Third Russian Protocol.\nSincerely yours,\nmh Daw\nW. L. Batt\nAttachment\nRegraded Unclassified\n309\nACTORY\nBUY\nE\n-\nWAR PRODUCTION BOARD\nWASHINGTON, D. C.\nSECRET\nApril 17, 1944\nIN REPLY REFER TO:\nMy dear Mr. President:\nAttached hereto is a tabulation\nshowing progress made during March, and\nduring the nine months ending March 31,\n1944 towards fulfilment of Third Protocol\nmaterials and equipment production programs\nfor the Union of Soviet Socialist Republics.\nThere is also attached a summary of the major\nproblems and developments which have marked\nproduction aspects of the program during\nthe first three quarters of the Protocol\nperiod.\nRespectfully yours,\n/e/\nDonald M. Nelson\nThe President\nThe White House\nWashington, D. 0.\nAttachments\n.RCRET\n2-800P\nRegraded Unclassified\n310\nSECRET\nSUMMARY OF PRODUCTION DEVELOPMENTS IN THE SOVIET\nMATERIALS AND EQUIPMENT PROGRAM IN THE\nFIRST THREE QUARTERS OF THE THIRD\nPROTOCOL PERIOD\nI. MATERIALS\nBecause of the easing of the domestic materials situation, as\nwell as because of intensification of efforts to arrange satisfactory\ndelivery schedules, stated Soviet requirements for all important materials\nare being met in full. Except for a few minor items, it has not been\nnecessary for some time to reduce a request of the USSR for a raw material\nor semi-fabricated product because of supply considerations.\nShipping limitations continue to restrict the flow of several\nbulky items. Aside from this, however, materials are going forward at\nthe rate desired by the USSR. Aluminum to the full amount requested has\nbeen scheduled for the last half of the Protocol year. The same is true\nof copper base alloys, carbon steel, alloy steel, railway materials,\nferro-alloys, and all major chemicals. Nickel, several special alloy wires,\nand a few special purpose chemicals have been held under the amounts re-\nquested by the USSR because of continued tight supply conditions, but even\nat the case of these there has been a very substantial increase in average\nmonthly shipments during the past quarter and further increases are\nscheduled for the current quarter.\nII. INDUSTRIAL EQUIPMENT\nThe present status of the Third Protocol industrial equipment\nprogram must be considered against the background of (a) the stocks situs-\ntion, (b) delays in the submission of new orders, and (c) the impact of\nseveral domestic programs, particularly the landing craft program, which\nhave been granted overriding priorities because of strategic considera-\ntions.\nlest the new industrial equipment program offered the USSR result in the\nAt the beginning of the Third Protocol period there was concern\naccumulation of excessive stocks. Calculations which weighed the tonnage\nof items held in this country as of July 1, 1943 and the tonnage of items\nscheduled for delivery during the coming twelve months against prospective out\nof hand in the same way that stocks of steel and certain other materials\nshipping seemed to indicate that stocks of industrial items might get\nhad gotten out of hand during the Second Protocol period. Because of\nRegraded Unclassified\n311\nand\n- 2 -\n- 3 -\nthis, those charged with over-all responsibility for the Russian program\nwere inclined to discourage application of pressurer to expedite deliver-\n1es of industrial items. It vis generally felt unwise to insist upon\nThe general effect of these several factore was that for many\nshipments at a given rate simply because such a rate had been net up in\ntypes of equipment going to the USSR, production vas behind Protocol\nthe Protocol schedule, and without regard to whether the equipment thus\noffers at the close of the third quarter of the Protocol period. Total\nmade available could be lifted.\ndeliveries of industrial equipment, in terms of dollar value, vere only\nslightly under the amount promised, and all indications were that between\nTo an extent, developments have demonstrated that there was\nMarch 31st and the end of June shipments will be increased to a point which\njustification for this attitude. Despite conservatism re expediting de-\nvill insure the US having made available from the over-all standpoint at\nliveries, the tonnage of industrial equipment held in Ordnance and Treasury\nleast $431,000,000 - i.e. the amount offered in the Protocol. However,\nwarehouses increased from some 97,000 short toos as of June 30, 1943 to\nthis is due to accelerated shipmente in the case of several relatively\nsome 167,000 short tone as of March 31, 1944.\neasy items. In spite of it, the USSA will not have received the amount\nof several important items which the US promised to make available.\nIt should be noted, however, that a very small number of items\nThe detailed outlook by categories is as follower\nwere responsible for this situation. Of the 167,000 short tone held in\nstorage on March 31st, approximately 120,000 consisted of machine tools,\nforging presses and hammers, power equipment, and complete industrial\nCemented Carbide Tipe and Blanks: Although there was some delay\nplants. Stocke of all other industrial equipment, which included nome\nin the clearance of Third Protocol orders, it was possible to work out\nsixty odd categories of maintenance and replacement items indispensable\nsatisfactory schedules and all contracts are expected to be completed\nfor the operation of the industrial establishment of the USSR, totalled\nby June 30, 1944.\nonly nome 47,000 short tons.\nSmall Outtine Tools: New Third Protocol orders were very slow\nOf more importance in holding back industrial equipment than\n-\nin coming in, and considerable difficulty vas experienced in arranging\nthe conservation of US officials vas the delay of Soviet representa-\nfor placement of contracts. In several cases orders had to be shifted\ntives in preparing and submitting specifications against Third Protocol\nfrom one company to another and special expediting pressures were necessary,\noffere. It will be recalled that in reports prepared by the War Produc-\nThe great majority of orders are expected to be completed by June 30th,\ntion Board during the first half of the Protocol period attention was\nbut a few important ones will probably be carried over into the Fourth\nrepeatedly called to the necessity of requisitions being cleared Immediate-\nProtocol period.\nly if adequate time were to be allowed for production cycles required for\ncompletion of orders before the end of the Protocol period. Despite these\nMeasurine Toola: The same difficulties were experienced in the\nand other efforts of the WPB, however, a large part of the new orders\ncase of measuring tools as for small outting tools. Most of these diffi-\nAuthorized under the Third Protocol was not cleared until December. Jam-\nculties have been overcome, but it is nevertheless anticipated that & few\nary, and February. Among the items affected were electric furnaces,\nordere will be carried over and the full Protocol promise will not be not.\nrolling mille and auxiliary equipment, wire drawing machines, cranes,\npumps, control instruments, small cutting toole, etc,\nAbrasive Graine and Abrasive Products: Despite relatively tight\nsupply conditions, it vse possible to schedule ordere satisfactorily, and\nThis late forwarding of requisitions inevitably raleed grave\nshipments at the end of the third quarter were ahead of Protocol promises.\nscheduling problems, it not being possible to arrange for shipment over\nA principal reason for this was the fact that all orders were cleared very\na five to seven month period the quantities of critical items which had\nearly in the Protocol period.\nbeen offered for delivery over a twelve month period. This was especially\ntrue mince a number of urgent domestic programs, all of which conflicted\nMachine Tools: The Third Protocol machine tool offer was one\nwith Russian items in regard to componente, fabricating facilities and\nof the most ambitious made by the US. It represented more than 15% of\nlabor, were given overriding priorities during the very months in which\ntotal production schedules for the corresponding period in the US, How-\nthe Russian items had to be scheduled.\nsver, the entire offer was covered by orders placed in advance of the\nopening of the Third Protocol period, and, because of this, it vaa possi-\nble immediately to put the program on a sound, scheduled basis.\nRegraded Unclassified\n312\nBECEBE\n- 4\n- 5 -\nThrough January, average monthly shipmente of machine tools\nvere above the rate promised. In February and March there vus A elight\nThe program as finally approved included A rail and structural\nfalling off, largely because manufacturers were finding it necessary to\nsill. & blooming mill, electrical aquipment for the above mills, fish\nspread remaining orders which they had on their books in such & vay as\nplate and tie plate installations, Besemer converters. hot metal mizers,\nto enable than to maintain their labor supply, etc., at & level which\ntransfer care, coke cars, hot metal cars, turbo blowere, de-watering equip-\nwould insure their being in a position to take care of future emergency\ncast. and foundry equipment. It is anticipated that supply of this equip-\nordere which night come in. Although this resulted in accumulative cen\nsent will contribute to the recovery of the Soviet staol industry and will\nliveries through March falling under the amount promised, this has caused\nconsequently help the USER to meet more fully its steel requirements from\nlittle concern. Stocks of Soviet muchine tools at the and of March were\nits own resources and reduce the quantity required from this country.\nvery large, totalling moro than 46 000 short tobs or approximately\n$70,000,000. Nevertheless, it is expected that during the next three\nProsses. Forces. Harmors. and Related Equipment: Under the\nmonths, shiphente will again increase with result that by June 30th\n$30,000,000 Third Protocol program were included such items as forging\npractically all orders vill have been completed.\ngrosson. humers, abears, bolt and out equipment, punching presses. manipu-\nlators, maxi-presses, etc. Among these were some of the largest machines\nXlactric Furnaces: Although the electric furnace industry is\nof this type which have ever been produced.\ngenerally in good shape, difficulties have been experienced 1a the execu-\nFev production problems have been encountered in connection with\ntion of the Russian program. The offer of $12,000,000 vas relatively\nlarge, requiring an appreciable percentage of total US capacity. At the\nthe program. However, the entire program has been repeatedly est back\nsame time, orders were late in coming in: there vae an unexpected con-\nthrough diversion of items to the small truck program. the malleable iron\ncentration in the small eise range: and certain components, notably\nprogram, the landing craft program, and other domestic programs. In con-\ninstruments, fractional motors, and frequency changer ests, offered\nsequence. by June 30th there probably will not have been delivered more\nproblems because of conflict with domestic programs. As a. result of\nthan $34,000,000 against the promised $30,000,000. However, stocks of\nthese factors, it appears likely that deliverics during the Protocol\n(\nsquipment of this type hold on USSR account are very large, totalling as\nperiod will fall short of the $12,000,000 promised by $2,000,000 to\nof March 32st more than 25,000 tons, and it 16 felt that the rate of\n$3,000,000. Navarthaless, it is falt that adequate supplies of furnaces are\nshipment is adequate to seet realistic Soviet needs.\nbeing, and vill continue to be, made available to meet shipping availabili-\nWire Praving Squipment: The $2,000,000 Third Protocol offer\nties and to take care of all reasonable Soviet requirements.\nvas intended to cover saventy-seven machines which had been ordered in\nadvance of June 30, 1943, and thirty-five additional machines which the\nRolling Kills and Doutness. and Reminant For Blast. Hearth.\nand Coke Turnaces' Total Third Protocol offers for equipment of this\nUSSR stated that it wished to order after June 30th.\ntype amounted to $26,000,000. These offers were formulated to cover &\nIn the case of the old orders for seventy-seven machines, pro-\nspecific list of squipment which the USAR had indicated that 10 urgently\nduction has been in accordance with schedule and all will be completed\nneeded and which it was found could be scheduled for delivery during\nbefore June 30, 1944. The dollar value involved 1a approximately $1,000,000.\nthe pariod May, 1943 - June, 1944. However, there were delays of several\nIn the case of the new orders for thirty-five machines, clearance was not\nmonths before problems in regard to supply of the equipment vare cleared\nworked out by the Soviet Purchasing Commission and the yea until February.\nup by the TEA and the Soviet Purchasing Commission. As a. result, the\nThese ordere will consequently have to be carried over into the Fourth\nVP3 found 16 necessary to notify the TRA that insufficient time remained\nfor ordere to be placed and fabrication completed by June 30th, It vas\nProtocol period.\nsubsequently agreed, however, to go aboad with the program with 11 being\nThe $12,500,000 offered under the Third Protocol in-\nunderstood that the equipment, with the exception of a few minor items\ncluded some $7,000,000 of old orders for Treasury procured items and an\nwhich required short lead factors, would not be completed prior to the\nretimated $5,500,000 of War Department procured items. Since formulation\nopening of the Fourth Protocol period.\nof the Third Protocol, however, a re-survey by the War Department has -\nrealed that no equipment which can properly be classified \"Excavator Equip-\nment\" is being procured by that agency for the USSR. (Equipment which truck was\noriginally considered \"Escavator Equipment\" 1e now classified under\nRegraded Unclassified\n313\nwas\n- 6 -\n- 7\nand tractor cranse and various construction equipment.) To all intents\nDespite this, and despite difficulty in securing required bearings and\nand purposes. therefore, the Third Protocol excevator program 1s not a\nmotore, it has been possible to arrange satisfactory schedules and few\n$12,500,000 but a $7,000,000 progrem.\ncontracts will have to be carried over.\nEven for a $7,000.000 program, numerous scheduling difficulties\nWelding Equipment: The welding equipment program has gone\nhave been encountered. US capacity 1e almost entirely taken up by Argy,\nsmoothly. Schedules are satisfactory and It is expected that the full\nMary, and the British and US surface oining programs. Purther, equipment\nProtocol commitment will be met without difficulty. Items being supplied\nbeing procured for the USSR is of such nature that only two companies are\nunder the program are designed for repair work on barges, railways, and\ncapable of handling it. Because of these difficulties, it 10 expected\nstructural shapes in buildings. as well 48 for use in the manufacture\nthat It will be necessary to extend several important contracts beyond\nof tanks, trucks, etc.\nJune 30, 1944.\nValves and Fittings: A substantially larger program than the\nCranest The actual Third Protocol program is substantially larger\n$3,000,000 offered is being carried out under the Third Protocol, a\nthan the $22,000,000 offered. The reason for this is that many of the items\nnumber of important orders having been accepted under the emergency\nbeing procured by the War Department which were formerly classified as\nequipment category. The program is proceeding moothly and satisfactory\nExcavator Equipment\" properly fall under this catagory.\ndeliverisa are being maintained.\nProduction problems of a erious nature have been encountered.\nEnsuratic Tools: Third Protocol orders for pneumatic tools are\nIn the case of special metallurgical cranes such as Indle cranes and in-\nbeing procured by the Var Department and it is understood that satis-\ngot strippere, difficulty has been experienced in securing bearings.\nfactory progress le being made on them. Data se to details have not\nAlso, after much preliminary work had been completed, Soviet representa-\nbeen zade available by the Var Department, however, All pre-Third Pro-\ntives insisted upon changes in specifications ende necessary by war develop-\ntocol orders, which are being procured by Treasury, will be completed\nments in the USSR. Mining hoista which form an important part of the\nbefore June 30th.\nprogram, were placed on order only late in the Protocol period and several\nControl Instruments and Testing Machines: Included in this\ncomponente, notably gears and electrical equipment, have slowed down pro-\nduction. For the program se 8 whole, set-backs have resulted from COD-\ncategory of equipment are circular and linear dividing machines, universal\nflicts with the rubber program and with the landing craft program. Be-\nand hydraulic testers, dynometer testers, proving rings, tool makers\ncause of these various factors, it la not expected that all contracts\nmicroscopes, etc. All items will be completed and delivered by June 30,\nwill be completed by June 30th.\n1944, except circular and linear dividing machines. Prior to the out-\nbrenk of the ver, circular and linear dividing machines were not pro-\nCompressors. Gas Blowers. Exhancters. and Pana: The Third Pro-\nduced in the US, Europe being the sole source of supply. One US company\ntocol program vas not presented to the WPB until December, 1943 - January,\nhas developed fabricating facilities but its capacity in limited to one\n1944. A few orders have only recently been submitted. Retarded deliver-\nor two machines a year. The USSR has twenty-one on order. Most of these\niss have been entirely due to this delay. as the program offers no pro-\nvill necessarily have to be carried over into the Fourth Protocol period.\nduction problems.\nAnti-Friction Bearings: An pointed out in previous reports.\nthe Soviet anti-friction bearings program has come into conflict with re-\nPugga: Fumps being supplied under the Third Protocol are con-\nquirements of the lamine craft program, the heavy duty truck program,\nsidered one of the most important items in the industrial equipment pro-\nthe synthetic rubber progrem and the agricultural equipment program, 0.0\ngram. Included are a group of exceptionally large pumps intended for use\nwell as other importent domestic programs. As a result, it will not be\nin the re-establishment of reservoir and water systems contaminated or\npossible to produce by June 30th the $15,000,000 promised. A special\ndestroyed in the occupied territories, mining pumps needed for the re-\neffort in being made to deliver such bearings as Soviet representatives\nopening of Donete coal mines, special chemical pumps. etc. No Third Pro-\nstate pre most orgently needed for their var effort. but from the over-\ntocol requisitions were placed until after the first of January. 1944.\nall standpoint it is expected that we vill fail to neet the formal com-\nsitment by some $3,000,000 to $5,000,000.\nRegraded Unclassified\n314\nabove\naso\n- 8 -\n- 9 -\nBlock Signal System: The Third Protocol program consists of a\nof this type vas limited to $36,500,000. However, orders on the books\nblock signal system designed for 3,000 kilonsters of railways under\nas of June 30, 1943 considerably exceeded this amount. Further, additional\nideal conditions or 5,000 to 10,000 kilometers under reasonably satis-\nitems have been approved under the emergency equipment offer.\nfactory working conditions. The equipment being supplied is identical\nto that required for domestic use with the exception of centralizers\nDeliveries under this category have been generally antisfactory.\nwhich are peculiar to USSR operations.\nCompetition with other programs has delayed completion of electric motors\nand other electrical equipment, but despite this, the flow of these items\nWork on the system is proceeding satisfactorily and it 10 antici-\nhas been large. Some of the other equipment included in this category\npated that virtually all shipments from plant will have been completed\nhas been hald up because of difficulty in securing components. but this\nby June 30th,\nagain has not seriously affected the situation of the USSR, ample supplies\nhaving been nade available to meet the more pressing needs of that country.\nPower Program: The Third Protocol power program consisted of\napproximately $40,000,000 of equipment ordered, but not delivered, during\nAltogether, through March net a total of $67,000,000 of suxiliary\nthe Second Protocol pariod, and $57,000,000 of new Third Protocol orders.\nequipment had been shipped from plant, and it 1a anticipated that at least\n$33,000,000 additional will be shipped between the and of March and June\nof the orders carried forward from the Second Protocol, roughly\n30th,\n98% vere completed by the end of March, 1944. The items still to be de-\nlivared, principally boilers, spare parts, switch gear, and process pip-\ning, will all be finlabed and shipped from plant in the next few weeks,\nIn the case of the $57,000,000 of equipment placed under order\nsince July 1, 1943, it 16 expected that approximately 60% (about $33,000,000)\nwill be shipped from plant by June 30, 1944. Inability to complete the TO-\nmaining 40% 1e largely the result of re-engineering and re-designing upon\nwhich the Russians have insisted. When the new Third Protocol program VI.I\noffered to the USSR, it was anticipated that work done on plants previous-\nly supplied would make possible proceeding with production thout pre-\nliminary engineering. However, because of changing conditions in the USSR,\nBussian representatives felt it necessary to ank for new specifications\nin many instances. After re-designing had been completed, the bill of\nmaterials already worked out for components, ote, could not be used for\nthe new plants and complete re-surveye had to be made, This resulted\nin loss of approximately three months in the placing of orders for 000-\nponents and other materials. Steel plate particularly caused trouble\nbecause space in mill schedules who lost for a period of several months.\nA further cause of delay in the program was conflict with urgent domestic\nprograms, particularly the landing craft program.\nAuxiliary Industrial Equipment: This category includes a wide\nvariety of equipment of which the most important are electric motors,\nother electrical equipment, engines and turbines, industrial trucks and\ntractore, petroleum refinery equipment, oil well drilling equipment,\ncomminications equipment, smelting and alloying equipment, hand tools,\nand agricultural machinery. The Third Protocol offer for all equipment\nRegraded Unclassified\nSTATUS OF MATERIALS AND EQUIPMENT PRODUCTION PROGRAMS usi. - THIRD RUSSIAN PROTOCOL a OF APRIL 1, 1944\n(MARCH DELIVERY DATA SUBJECT TO ENVISION)\nPro-\nItem\nUnit\n3rd\nMade Available\nMade Available\nPercent of\nRatio of\nBalance to be\nComments\ntocol\nProtocol\nat Mill in U.S.A. at Mill in U.S.A.\n3rd Prot.\nActual\nProduced\nItem\nProduction\nMar. 1, 1944 -\nJuly 1, 1943 -\nProgram\nDeliveries to\nM of Apr. 1, 1944\nNo.\nProgram\nMar. 31, 1944\nMar. 31, 1944\nCompleted\nProt.Sched.\nTo Complete\nas of\n(Prot.Sched.=100)\n3rd Protocol\nApr. 1, 1944\nProd. Program\nNON-7%RIOUS METALS\nAluminus shipments to date com-\nsist of 5,278 S.T. red and tab-\n3 Alumisum (Inget and Fabricated)\nS.9.\n35,760\n14,982\n72,946\n204\n272\n(37,186 Excess)\ning: 18,444 S.T. sheet; and\n49,224 S.T. inget including\nsecondary.\n% Fickel\nIncludes shipment on U.S. ao-\n&\nPig Fickel\n5.7.\n3,600\n300\n3,900\n108\n144\n(300 Excess)\ncount of 800 S.T. from U.K.\nstocks.\nThe 274 S.T. shows as the Third\nProtocol production program is\n3\nWickel in Nonel Scrap\nS.T.\n274\no\n274\n100\n133\no\nthe quantity selected by the\nU.S.S.R. out of a total of 600\nS.T. originally offered.\nContained sickal deliveries to\ndate consist of 923 S.T. is steel;\n337 8,7, to nichrose wire and\no\nNickel in Steel and Other\nS.T.\n2,400\n108\n1,681\n70\n93\n719\nstrip: 295 S.T. in cupro-niskel\nNon-Ferrous Products\nstrip: and 126 S.T. in various\n-\nother products including pure\nnickel products.\n5 Molybdemum\n5.7.\n4,000\n333\n3,330\n83\nin\n670\nElectrolytic copper figures N°\nfor to copper contained in vari-\nour miterials requiring copper\nwhich are being supplied the\nU.S.S.R. Deliveries to date\ninclude 64,854 s.f. contained\nis copper base alleys: 10,025\nS.T. contained in copper goods\n6 Copper, Electrolytic\nS.T.\n(121,400)\n(13,725)\n(88,371)\n(73)\n(97)\n(33,029)\nand tabes: 674 S.f. contained\nin bimetal: and 12,818 S.T.\ncontained in vire mill products,\nIs addition to the copper pro-\ngram shows, the V.P.B. has más\narrangements for the supply of\n16,800 S.T. of copper wire bare\nduring the remainder of the Third\nProtocol period.\n31\nRegraded Unclassifie\nPro-\nItem\nUnit\n3rd\nHade Available\nHade Available\nPercent of\nRatio of\nBalance to be\nConsents\ntocol\nProtocol\nat xm in U.S.A.\nat mill in U.S.A.\n3rd Prot.\nActual\nProduced\nItem\nProduction\nMar. 1, 1944\nJuly 1, 1943 -\nProgram\nDeliverise to\nAS of Apr. 1, 1944\nNo.\nProgram\nHar. 31, 1944\nMar. 31, 1944\nCompleted\nProt.Sched.\nTo Complete\nas of\n(Pret,Sched,*100)\n3rd Protocol\nAnr. 1, 1944\nProd. Program\nNON-FERROUS METAIS (Continued)\n7 Copper Base Alleys\nS.f.\n107,520\n15,974\n85,227\n82\n109\n19,293\nE Magnesium\nS.T.\n4,032\n335\n3,024\n75\n100\n1,008\n9 Zine\nS.T.\n13,440\n1,120\n10,080\n75\n100\n3,360\n11 Copper Goods and Tubes\n8.7.\n15,000\n1,275\n10,025\n67\n65\n4,975\nThe third Protocol provides that\n- to 269 S.f. of special -\nferrous vires my be ordered.\nUntil the present, hovever, only\n100 S.T. have boen requisitioned.\nThe Third Protocol production\nschedule 1a, therefore, limited\nto this amount, Deliveries to\ndate include A S.T. of tangstes\nalley wire: 2.9 S.f. of constaa-\n29 Special Non-Ferrous Alloy\nS.T.\n100\n13\n90\n90\n120\n10\ntan vire: ,4 S.T. of tastalum\nwire: 33.1 8.9. of alwel and\nVires\nchromel vire: 15.9 S.T. of monal,\noverdur and beryllium bronse\nwire: 5.7 8.2. of enamelled -\ngania wire; 19.8 5.7. of molyb-\ndenue vire: -5 S.T. of manganis\nvirg: 5.7 S.T. of round maganis\nwire: 5-3 S.T. of hare thereo-\ncouple wire: and -3 S.T. of\nZenet solybdenns vire.\nOn urgent request of the U.S.S.R.,\nthe U.S. has agreed to undertake\nsupply of 134 S.T. is addition\nto the amount originally offered\nin the Protocol. Soverer, due\nto AS acute shortage of chrosise\n30 Nichrose Wire\nS.T.\n5.38\n23\n222\n76\n104\n116\nmetal, difficulty is being -\ncountered is scheduling this added\nquantity. la consequence, it vill\nprobably be necessary to carry &\n1-rge part of it over into the\nFourth Protocol period.\nUSE\n316\nRegraded Unclassified\nPro-\nItem\nUnit\n3rd\nMade Available\nMade Available\nPercent of\nRatio of\nBalance to be\nCompents\nProtocol\nat Fill is U.S.A.\nat Mill in U.S.A.\n3rd Prot.\nActual\nProduced\ntocol\nItem\nProduction\nMar. 1, 1944 -\nJuly 1, 19:3-\nProgram\nDeliveries to\nas of Apr. 1, 1944\nNo.\nProgram\nMar. 31, 1944\nMar. 31, 1944\nCompleted\nProt.Sched.\nTo Complete\nná of\n(Prot.Sched.=100)\n3rd Protocol\nApr. 1, 1944\nProd. Frogram\nFOR-FIRMOUS METALS (Continued)\nThe Third Protocol cadaium cossit-\nment vas originally included is\nthe Canadian schedule, but due to\na difficult supply situation is\n93 Ordaine\nS.T.\n112\n28\n56\n50\n100\n56\nCanada, the U.S. agreed to take\nthis over as the 112 s.r. due is\nthe second half of the Protocol\nperiod.\nThe production program above is\nfor the first half of the Third\nProtocol period: the ratio of\nactual deliveries to the Proto-\ncol schedule bes, therefore,\nbeen adjusted to take this late\naccount. The October shipment\ncompleted the full original he\n94 Cobalt\nS.T.\n80.5\no\n80.5\n100\n133\n0\ntocol offer. The U.S.S.R. -\ncently requested the Increase of\nthe Protocol offering by 78 s.r.\nThe U.E. has agreed to supply\none-half of this along with the\n80.5 S.T. included in its Pro-\ntoool schedule. The U.S. will\nsupply the reminder.\nTotal Con-Ferrous Metale\n(Excluding Item 6,\nS.T.\n186,855.5\n34,192\n194,135.5\n104\n139\n(7,279 Excess)\nConcer, Electrolytic)\nFERRO-ALLOYS\n12 Ferrosilicom\nS.T.\n-\no\n57\n-\n-\n-\nBecause of the stocks situation,\nThird Protocol offers to supply\nup to 78% S.T. of ferresilicon\nand S.T. of ferrochrous per\n13 Ferrochrome\nS.P.\n-\n0\no\n-\n-\n.\nmonth are considered insperative.\nI\n317\nRegraded Unclassified\nPro-\nItem\nUnit\n3rd\nHade Available\nMade Available\nPercent of\nRatio of\nBalance to be\nCommants\ntocol\nProtocol\nat Mill in U.S.A.\nat Fill in U.S.A.\n3rd Prot.\nActual\nProduced\nItem\nProduction\nMar. 1, 1944 -\nJuly 1, 1943 -\nProgram\nDeliveries to\nas of Apr. 1. 1944\nNo.\nProgram\nMar. 31, 1944\nMar. 31, 1944\nCompleted\nProt.Sched.\nTo Complete\nas of\n(Prot.Sched.=100)\n3rd Protocol\nApr. 1, 1944\nProd. Program\nFREEO-ALLOYS (Continued)\n854 Perronolyblemus\n8.9.\n1,456\no\n1,120\n77\n183\n336\nforrovanation,\nand forretungsten have been\nscheduled in the quantities above\nunder the Third Protocol produc-\nties program as aubstitutes for\n- equivalent scanage of ferre-\n86 Ferrovanadium\nS.T.\n358\n0\n224\n63\n150\n134\nsilicon end/or ferrochross. to-\ncluded is these quantities are\n336 S.T. ferronolyblems, 134\nS.T. forrovanadium, and 224 S.T.\nferrotungsten which are current-\nly being approved for delivery\n67\nPerrotungsten\nS.T.\n1,064\no\n526\n49\n148\n538\nin the second quarter, 1944,\nTotal Forre-Alleys\n8.7.\n-\no\n1,927\n-\n-\n1,008\nALLOT STEEL\n16 Polished Drill Rod\n3\nRigh Speed\nS.f.\n96\n11\n85\n89\n119\n11\nc\nOther Allay\nS.f.\n45\n3\nbo\n89\n119\n5\n17\nRigh Speed feel Steel\ns.r.\n4,480\n203\n4,551\n104\n139\n(171 Excess)\n18\nfeel Steel\n3\nAlley n2\nS.P.\n672\n70\n665\n99\n132\n7\nc\nAlley X12M\nS.f.\n672\n64\n611\n91\n121\n61\n2\nOther Alleys\n3.9.\n4,850\n525\n4,912\n101\n135\n(62 Excess)\n19\nCold Finished Bare\nS.T.\n11,200\n933\n9.395\n54\n112\n1,805\n20 LL Alley here and Billete\nS.T.\n67,267\n9,018\n55,669\n83\nm\n11,598\n23 Stainless Steel\n1-3 Sheets and Strip\nS.T.\n3,007\nhog\n3,130\n104\n139\n(123 Excess)\n0\nhere\n8.9.\n756\n55\n593\n76\n104\n163\n0%\nSteel Wire\nA\nMall Vire\nS.T.\n1,34\nso\n1,215\n90\n120\n129\n3\nAlley 232\nS.T.\n1,344\n228\n1,058\n79\n105\n266\no\nOther Alley\nS.T.\no\no\n191\n-\nI\n(191 Excess)\n318\nRegraded Unclassified\nPro-\nItem\nUnit\n3rd\nMade Available\nMade Available\nPercent of\nRatio of\nBalance to be\nComments\ntocol\nProtocol\nat Mill in U.S.A.\nat Mill in U.S.A.\n3rd Prot.\nActual\nProduced\nItem\nProduction\nMar. 1, 1944 -\nJuly 1, 1943 -\nProgram\nDeliveries to\nas of Apr. 1, 1944\nNo.\nProgram\nKar, 31, 1944\nMar. 31, 1944\nCompleted\nProt.Sched.\nTo Complete\nas of\n(Prot. Sched.-100)\n3rd Protocol\nApr. 1, 1944\nProd. Program\nALLOT STEML (Continued)\n27 Steel Alley Tubes\nA\n18% Cr. - es n.\nS.T.\n994\n188\n1,222\n123\n164\n(226 Excess)\n1,019\nB\n4-66 Chrone\nS.T.\n8,625\n937\n7,506\n88\n117\n0-8 Carbon 35 Moly., Pipe Sizes\nS.T.\no\no\n9\n-\n-\n(9 Excess)\n7\nL.R. 3all Hearing Tubes\nS.T.\n5,376\n779\n5,060\n94\n125\n316\n26\nStainless Steel Wire\nS.T.\n1,747\n163\n1,609\n92\n123\n138\nmg Special Allay Wire\nS.T.\n754\n26\n819.\n104\n139\n(35 Excess)\nTotal Alley Steel\nS.T.\n113,259\n13,692\n98,540\n87\n116\n14,719\nCARBON STEEL\n101-8 Rails, Accessories and Other\nS.T.\n-\n18,659\n188,548\n-\n-\n-\nBailvay Material\n10 Copper Clad Strip (Bimetal)\nS.T.\n-\n4,167\n5,852\n-\n-\n-\nApproximately 110,000 8.9. of\ncarbon steel have been scheduled\n16A Plain Carbon fool Steel and\nS.T.\n508\n6,515\n-\n-\n-\nfor delivery prior to June 30,\n-\n1944, in addition to the 345.397\n& 18A\nDrill 3od\nS.T. originally included in the\nThird Protocol program.\n19D Plain Carbon Bullet Care\nS.T.\n-\n43\n11,736\n-\n-\n-\nS.T.\n1,511\n36,504\n-\n-\n-\n24 Timplate\n-\n- Other Carbon Steel\nS.T.\n-\n1,526\n70,017\n-\n-\n-\nTotal Carbon Steel\n5.7t\n345.397\n26,714\n319.372\n92\n123\n26,025\nCHEMICALS\nS.T.\n1,653\n8,701\n-\n-\n-\n36 Phesel\n-\nthe 650 S.T. shown as the qual-\ntity delivered through Karch 31\nis 350 less than that delivered\n38\nEthylene Glycol\n5.7.\n-\no\n&\n-\n-\n-\nthrough Feb. 29 due to a out-\nback agreed to by Soviet repre-\nsentatives.\n319\nRegraded Unclassified\nPro-\nItem\nUnit\n3rd\nHade Available\nNade Available\nPercent of\nRatio of\nBalance to be\nComments\ntocol\nProtocol\nat Mill in U.S.A.\nat Mill in U.S.A.\n3rd Prot.\nActual\nProduced\nItem\nProduction\nFar. 1. 1944 -\nJuly 1, 1943 -\nProgram\nDeliveries to\nas of Apr. 1, 1944\nNo.\nProgram\nMar. 31, 1944\nMar. 31. 1944\nCompleted\nProt.Sched,\nTo Complete\nna of\n(Prot.Sched.=100)\n3rd Protocol\nApr. 1, 1944\nProd. Program\nCHEMICALS (Continued)\n45 Methanol\nS.T.\n-\no\n3.395\n-\n-\n-\n46 Urotropine\nS.T.\n-\n225\n4,975\n-\nI\n-\n.\nSIA1 Glycerine\n8.7.\n6,720\no\n7.707\n115\n153\n(987 Excess)\n61A3 Caustic Soda\n3.7.\n40,320\n272\n24,925\n62\n=\n15,395\n61,600 S.T. of ethyl alcohol have\nbeen scheduled for delivery during\nthe Third Protocol period in addi-\n38A Sthyl Alcohol\nS.T.\n107,520\no\n114,278\n106\n141\n(6,758 Excess)\ntion to the 107,520 S.T. originally\nincluded in the Third Protocol\n-\nprogram.\n6145 Acetons\nS.T.\n5,137\n420\n3,198\n62\n83\n-\n1,939\n514 Other Chamicals\n-\nS.T.\n12,096\n1,248\n5,347\n69\n92\n3,749\nTotal Chemicals\nS.T.\n-\n3,818\n176,176\n.\n-\n-\nMARINE AND SUBMARINE CARLE\n1 Marine Cable\nEM.\n784\n7\n198\n25\n33\n586\n014 orders for marise and submarise\ncable have been largely completed\nwhereas deliveries of new orders\nhave not yet begun because of lead\n2 Submarise Cable\nYM.\n319\n1\n120\n38\n51\n199\nfactors.\nTotal Marine and Subscribe\nIN.\n1,103\n8\n318\n29\n39\n785\nCable\n-\nPOWER AND RELATED CARLE\n74\nInsulated Cable and Vire\nS.T.\n-\n754\n11,170\n-\n.\n-\n01d orders for pover and related\n(Conser Content)\ncable have been largely completed\nwherens deliveries of care orders\nTHA Bare Cable and Wire\n3.7.\n-\n113\n1,542\n.\n-\n-\nhave not yet begun because of lead\n(Copper Content)\nfactors.\nTotal Power and Related\n1.7.\n21,000\n867\n12,712\n51\n81\n8,288\nCable\n320\nRegraded Unclassified\n-\n-\nPro-\nItem\nUnit\n3rd\nMade Available\nInde Available\nPercent of\nRatio of\nBalance to be\nComments\ntocol\nProtocol\nat Mill in U.S.A.\nat Vill in U.S.A.\n3rd Prot.\nActual\nProduced\nItem\nProduction\nMar. 1, 1944 -\nJuly 1, 1943 -\nProgram\nDeliveries to\n- of Apr. 1. 1944\nNo.\nProgram\nMar. 31, 1944\nMar. 31. 1944\nCompleted\nProt.Sched.\nTo Complete\nas of\n(Prot,Sched.=100)\n3rd Protocol\nAnr. 1, 1944\nProd. Program\nMISCUMATIONS PATERIALS ITEMS\n80 Sheet Fiber\nS.T.\n1,000\no\n1,370\n137\n183\n(370 Excess)\n63 Parchaent Paper\nS.T.\n1,680\n,\no\no\n}\nto date as requisitions have been\no\n1,680\nsubmitted by Soviet representatives.\n83A1 Lithogronh Map Paper\nS.T.\n-\n550\n2,221\n-\n-\n-\n834 Condenser Paper\nS.T.\n73\n19\n56\n77\n103\n17\n}\nBecause of delays is the\nor requisitions, production of -\ndenser paper vas not began until\nJamary.\nS.T.\n336\n0\n0\no\no\n336\n}\nTo date as requisitions have been\n833 Cigarette Paper\nsubmitted by Soriet representatives,\nINDUSTRIAL AND RELATED EQUIPMENT\n15A Consented Carbide Tips and\n$\n3,000,000\n11,631\n1,180,183\n39\n52\n1,619,817\n*lasks\n158 Small Outting Tools\n$\n15,000,000\n980,311\n8,512,250\n57\n75\n6,457.750\n150 Yearoring Tools\n$\n3,000.000\n151,503\n1,020,223\n34\n45\n1,979,777\nFTB Abrasive Products\n$\n4,000,000\n50,861\n3,571,833\n89\n119\n428,157\n62 Mechine Tools\n$ 120,000,000\n5,623,400\n84,946,050\n71\n95\n35,053,950\nSee attached taxt for communis.\n53 Electric Purnaces\n$\n11,900,000\n583,528\n4,456,067\n38\n51\n7,143,933\nas Bolling Mills and Equipment\n$\n16,000,000\n207.946\n1,529,211\n10\n13\n14,470,789\n543 Freeses, Forges, Hanners and\n$\n30,000,000\n746,491\n17.071.041\n57\n76\n12,928,359\nRelated Mynipment\n54c Tire Drawing Reuineent\n$\n2,000,000\n178,538\n203,625\n10\n13\n1,796,375\n65A Receavators\n$\n12,500,000\n276,139\n7,856,175\n23\n31\n9,643,825\n321\nRegraded Unclassified\nFre-\nItem\nUnit\n3rd\nMade Available\nMade Available\nPercent of\nRatio of\nBalance to he\nComments\nProtocol\nat mill in U.S.A.\nat Mill is U.S.A.\n3rd Prot.\nActual\nProduced\ntocol\nItem\nProduction\nMar. 1, 1944 -\nJuly 1, 1943-\nProgram\nDeliveries to\nas of Apr. 1, 1944\nProgram\nMar. 31, 1944\nMar. 31, 1944\nCompleted\nProt. Sched,\nTo Complete\nNo.\nas of\n(Prot.Sched.=100)\n3rd. Protocol\nApr. 1, 1944\nProd. Program\nINDUSTRIAL AND RELATED EQUIPMENT (Continued)\n658 fruck and Tractor Cranee\n$\n22,000,000\n1,482,126\n16,683,240\n76\n101\n5,316,760\n650 Other Cranes\n$\n650 Compressors, Gas Vlowers,\na\n9,000,000\n68,179\n3,778,534\n42\n56\n5,221,466\nZcheusters and Thas\n65% Pumps\n$\n8,000,000\n214,075\n4,396,734\n55\n73\n3,603,266\n658 Mining Equipment, Ore Dressing,\n$\n10,000,000\n172,452\n5,183,325\n52\n69\n4,816,674\nHandling and Transporting\nExcipent\n950 Equipment for Blast, Hearth\n$\n10,000,000\n226,722\n1,778,778\n13\n17\n8,721,222\nand Coke Farnaces\nSee attached text for compate,\n658 Velding Equipment\n$\n4,400,000\n138,645\n2,698,452\n61\n81\n1,701,548\n651 Valves and Fittings\n$\n3,000,000\n117,803\n3,041,610\n101\n135\n(41,610 Excess)\n652 Pneuratic Tools\n$\n5,000,000\n194,635\n2,262,470\n45\n60\n2,737.530\n11\n65% Autiliary Industrial Equipment\n$\n36,500,000\n2,021,282\n67.875.218\n186\n248\n(31,375,218 Excess)\n66 Centrol Inst. and Testing\n$\n1,700,000\n42.572\n769,189\n45\n60\n930,811\nMachines\n-70\nAnti-Friction Mearings\n$\n15,000,000\n657,058\n7,053.649\n47\n53\n7.946,351\n111\nBlock Signal System\n$\n14,591,500\n690,212\n4,033,453\n25\n37\n10,558,047\n140\nPower Equipment\n$\n75,000,000\n3,316,754\n44,179,362\n59\n79\n30,820,638\nTotal Industrial and Related\n$\n431,291,500\n18,402,994\n268,561,273\n67\n89\n142,710,227\nEquipment\n322\nRegraded Unclassified\nYre-\nItem\nUnit\n3rd\nMade Available\nMade Available\nPercent of\nNatio of\nBalance to be\nComments\ntacel\nProtocol\nat Mill in U.S.A.\nat Mill in U.S.A.\n3rd Prot.\nActual\nProduced\nItem\nProduction\nMar. 1, 1944 -\nJuly 1, 1943 =\nProgram\nDeliveries to\nas of Apr. 1, 1944\nProgram\nMar. 31, 1944\nMar. 31. 1944\nCompleted\nProt.Sched.\nto Complete\ni\nAP of\n(Prot.Sched.=100)\n3rd Protocol\nAnr. 1, 1944\nProd. Program\nMISCELLATIONS EQUIPMENT ITEMS\n67A Abrasive Orain\nS.T.\n4,000\n1,432\n6,312\n158\n211\n2,312\nFEA Graphite Electrodes\nS.T.\n5.757\n396\n4,621\n80\n107\n1,136\nfax Other Graphite Goods\nS.T.\n1,691\n16\n693\n41\n55\n998\n660 Graphite Powder\nS.T.\n1,120\n177\n1,712\n153\n204\n(592 Excess)\n76 Tires, fuber, Other Rubber\nS.T.\n40,320\n1,460\n24,571\n61\n81\n15,7%9\nProducts (haber Content)\n82 Metallic Cloth and Screen\n#\n1,000,000\n54,316\n431,484\n43\n57\n568,516\nVar Production Foard\nForeign Division\nProgram Review Branch\nApril 15, 1944\n323\nRegraded Unclassified\n324\nMr. Dell said for you to show this\nto the Secretary. It is an informal\nthing and no acknowledgment is\nyes-\nwas Klatz 1 M\nLet me know whether\nH. w hite has seen\nthey. Mr.\nOffice of the Under Secretary\nE\nSTATE\nTHE\n25\nDEPARTMENT OF STATE\nWASHINGTON\nIn re\nfer to\nPKA\nApril 22, 1944\nThe Secretary of State presents his compliments\nto the Honorable the Secretary of the Treasury and\ntransmite for his information a copy of a note dated\nApril 20, 1944 received from the British Embassy re-\ngarding a loan of $50,000,000 by the United Kingdom\nto China.\nEnclosure:\nFrom British Embassy,\nnote no. 225, dated\nApril 20, 1944.\nG.L.\nRegraded Unclassified\nENTIAL\nNo. 225\nRef. 493/25/44\nHis Majesty's Ambassador presents his\ncompliments to the Secretary of State and has the\nhonour to inform Mr. Hull that His Majesty's\nPrincipal Secretary of State for Foreign Affairs\nproposes to make an announcement in the House of\nCommons on or about April 22nd, 1944, regarding the\nagreement which is to be signed on that day on the\nsubject of B. loan of $50,000,000 by His Majesty's\nGovernment in the United Kingdom to China. A copy of\nthe draft text of this announcement is attached hereto\nand Viscount Halifax would be grateful if Mr. Hull\nwould consider it as confidential until after it has\nbeen made public in London.\n2.\nAs Mr. Hull is aware, discussions have been\ngoing on for some considerable time between His Majesty's\nGovernment and the Chinese Government regarding this\nloan, and Viscount Ralifax has been instructed to inform\nMr. Hull that t he agreement now to be signed represents,\nwith minor alterations, the basis on which Hia\nMajesty's Government in the United Kingdom have,\nsince the inception of the negotiations, been ready to\noffer this credit.\n3.\nThe main points of the loan agreement are\nas follows:-\n(a) His Majesty's Government in the United\nKingdom agree to provide up to L10,000,000 in the first\ninstance to secure an internal loan. An eventual\nincrease in this amount, if it should be found that\n/more\nRegraded Unclassified\nONFIDENTIAL\nDRAPT TEXT OF ANNOUNCE NT TJ B. HADE CY HIS\nMAJESTY'S PRINCIPAL SECRETARY 0: X T. FOR\nFORMIGN AFFAIRS INTE IC O. COLDIONS\nA formal agreement :a being signed today on\nthe subject of the loan by N1o \"ajosty's Covernment to\nChina of up to $50,000,000. Under the terms of the\nagreement, which carries ut the offer made by His\nMajosty's Government to the Chinoso Government somo\ntino ago, up to 550,000,000 will be available for finan-\nching of goods and services required by China in the\nstorling aron, for jurposes artsing out of the war.\nsecond agreement covering munitions, arms and\nmilitary equipment on lend-lease terms by the \"nited\nKingdom to China has been 5 igned at the samo time.\nPending the signature 02\" agreements, the cost of Coods\nand services required by hind from the sterling area\nfor war purposes has be n not from onrlier Tribish\ncredits; munitions otc., have 50 n provided on lend-\nlease torms 1:. anticipati = of ont agreement. he\nlimit of our assistance to China remains as always,\none of transport and not _no of financo,\nI an sure that the Housevill share = ontia-\nfaction that those agreements ha e now bound cluded\nand that in this, ad in other ways, we have mádo manifost\nour desire to (Ive all the holp to China that lies within\nour power.\nRegraded Unclassified\nPage 2.\nmore could be effectively used for such a scheme, is\nnot excluded.\n(b) The credit is not to be used for sterling\nsavings certificates.\n(a) His Majesty's Government in the United\nKingdom agree to use, during the war, of 10,000,000\nfor printing bank-notes in the Sterling Area, and for\noutstanding and future payments on orders already\nplaced under previous credit arrangements.\n(d) His Hajesty's Government in the United\nKingdom agree that the Chinese Government my earmark\nthe sum of L20,000,000 for the purchase of goods in\nthe Sterling Area for war purposes.\nThe remaining £10,000,000 would then be\navailable for such of the purposes covered by the Agree-\nment as might prove necessary.\n(a) His Majesty's Government in the United\nKingdom agree to ranko payments which fall due after the\nend of the war on contracts properly concluded, with\ntheir concurrence, for goods which could reasonably be\nexpected to arrive in time to serve \"war purposes\".\nJ\nViscount Halifax has also been informed that\nthe opportunity presented by the signing of this loan\nagreement will be taken to sign the Lend Lease agreement\nbetween His Majesty's Government in the United Kingdom\nand the Chinese Government which was originally proposed\nin February 1942, and which, although unsigned, has in\nfact been in operation since April 1942.\nBRITISH EMBASSY,\nWASHINGTON, D.C.,\nApril 20th, 1944.\nRegraded Unclassified\n329\nDevelopments during the week of\nApril 17 - 22, 1944\n1. COOPERATION WITH OTHER GOVERNMENTS\n(a) Russia\nA reply has been received from the Soviet Government\nto the memorandum left by Ambassador Harriman with respect\nto the creation and objectives of the Board. This reply\nstates in substance that the policy of the Soviet Govern-\nment has been, and still is, to aid in every way possible\nthe victims of persecution by Hitlerite Germany.\nIn a cable to Harriman we have asked that appropriate\nauthorities of the Soviet Union be approached in an effort\nto ascertain whether, in view of the positive action re-\ncently taken by both the United States and British Govern-\nments in reiterating their attitude toward Nazi war crimes\nand atrocities, the Soviet Government would take similar\naction. We have indicated our belief that such a statement\non the part of the U.S.S.R. would have a profound effect\nupon the leaders and people of Rumania and Hungary.\n(b) Greek Government-in-Exile\nAccording to a report from the U. S. Legation in Cairo,\nthe Royal Hellenic Government has welcomed the creation of\nthe Board and has indicated its desire to cooperate in alle-\nviating the refugee problem. A memorandum left with the\nLegation in Cairo stresses the great hunger and other\nhardships visited upon the Greek people as a result of\nGerman occupation. The memorandum also points out that\npersons in danger can escape from Greece with relative\nease because of that country's geographical position.\n(c) Turkey\nAmbassador Steinhardt reports that the Turkish Govern-\nment has now put into effect a plan worked out before\nHirschmann's departure, for the evacuation of refugees\nfrom the Balkans by rail via Turkey.\nRegraded Unclassified\n330\n- 2 -\nWe have been advised that Turkish repatriates are also\narriving in Turkey from France, in groups of fifty or 80\nand at regular intervals, this repatriation being a direct\nresult of our representations through Hirschmann and Stein-\nhardt to the Turkish Government.\nWith respect to further \"illegal\" voyages by the \"Milka\"\nand \"Maritza\" -- that is, evacuations in which the proper\nmaritime papers, Palestine immigration certificates, and\nTurkish entrance and transit visas are lacking, Ambassador\nSteinhardt indicates that if the number does not go beyond\n500 refugees per month, he is reasonably sure that entry\nand transit can be arranged with the Turkish Minister for\nForeign Affairs as each occasion arises, subject to the\nlimited carrying capacity of the railroad to the Syrian\nfrontier from Istanbul. Because of the recent substantial\nincrease in the transit to Palestine from Istanbul of refu-\ngees arriving \"legally,\" Steinhardt estimates that this\n500 is the maximum number of refugees arriving illegally\neach month for whom rail transportation could be provided.\nIn & cable to Ankara we are advising Steinhardt that\nwe have now obtained from the War Shipping Administration\nand from the Foreign Economic Administration authorization\nto commit this Government to the replacement of the \"S.S.\nTari,\" in the event of the loss of that ship in projected\nevacuation efforts, with a passenger vessel, as requested\nby the Turkish Government. In order to remove the one\nremaining obstacle, the granting of safe-conduct by the\nGerman Government, we are requesting that Steinhardt urge\nboth the International Red Cross representative in Ankara\nand the Apostolic Delegate from Istanbul to arrange to see\nvon Papen in person. Steinhardt is also being asked to\nadvise us when the \"Tari\" is ready to depart, in order that\nwar risk insurance may be placed here.\n(d) Switzerland\nThe appointment of Roswell McClelland as the Board's\nSpecial Representative in Bern, Switzerland, and as Special\nAttache to the Legation on war refugee matters, has been\nconfirmed.\nMinister Harrison has reported that the Swiss Govern-\nment has declined to request German safe-conduct for the\n\"S.S. Tari\" in the projected Turkish evacuation on the\nground that Swiss support of such a request would impede\nthe efforts of the International Red Cross in that direction.\nRegraded Unclassified\n331\n- 3 -\nThe Swiss Government indicated, however, that it would not\nrefuse to consider participation in a joint step which other\nneutral states might decide to undertake in this matter\nfor exclusively humanitarian motives. Harrison subsequently\nreported that & similar position had been taken by the\nSwiss Government with respect to IRC representations\nconcerning safe-conduct for the \"S.S. Bellacitta.\"\nWe have cabled Harrison that both the Swedish and\nTurkish Governments have already acted in support of the\nIRC request for German safe-conduct for the \"Tari\" and\nwe have suggested that Harrison may wish to bring these\ncircumstances to the attention of the Swiss Government\nin renewed efforts to obtain an affirmative decision.\n(e) Sweden\nWe are continuing our efforts to arrange for the use of\na Swedish ship, notably the \"S.S. Bardalanda,\" in Turkish\nevacuation efforts.\nWith respect to the President's statement of March 24,\nMinister Johnson reports a fairly general coverage in\nStockholm newspapers, with less coverage throughout the rest\nof Sweden. Excerpts from the President's statement were\ngiven in official Swedish news broadcasts in the Swedish\nlanguage over short, medium, and long wave lengths. The\nstatement was also relayed through underground channels to\nNorway and Denmark and may thus come to the attention of\noccupation forces in those countries. Informal requests\nby the Legation that prominent government officials publicly\ncomment on the statement were unsuccessful.\nJohnson also reports that the Swedish Government has\nagreed to make every effort to hasten action on the part of\nthe Germans with respect to the granting of safe-conduct\nfor the \"S.S. Tari.\" The matter of safe-conduct for the\n\"S.S. Bellacitta\" is also being taken up with the Swedish\nGovernment.\n(f) Guatemala\nIn reply to State's circular airgram of January 26,\nAmbassador Long advises that little or nothing is being done\nofficially in Guatemala toward the rescue or relief of\nmission has been granted for nearly 1,000 refugees to enter\npersecuted elements in Europe, although since 1933 per-\nRegraded Unclassified\n332\n- 4\nGuatemala. The Guatemalan Government reportedly permits\nthe entry of refugees for permanent residence where such\nrefugees are able to obtain a guarantee of support from\nrelatives already residents or nationals of that country;\nin- some instances refugees have been able to gain entry\nfor permanent residence without local sponsors. However,\nin all cases entry is granted only under the provisions of\na law which severely restricts the pursuits of immigrants.\nAlleged abuses of entry restrictions led to a government\ndecree in March 1929, closing business establishments\nowned or operated by refugees, requiring the registration\nof business houses, and calling for the licensing of agents\nworking on a commission basis.\nAmbassador Long indicated his belief that if any\nrepresentations are to be made to the Guatemalan Government\nwith respect to the acceptance of refugees, the chances of\nsuccess would be greatly enhanced if any such proposal\ncould be presented in specific terms, particularly with\nrespect to the number of persons proposed and their probable\nlength of stay.\n(g) Finland\nOn the basis of informal discussions, Minister Gullion\nreports his belief that the Finnish Government would in\nall probability issue a declaration with respect to its\nwillingness to facilitate the movement of refugees. The\nFinnish Foreign Office has indicated that, if such a\nstatement is to be made, its release will be timed to co-\nincide with the projected evacuation of certain Jewish\nrefugees from Finland to Sweden.\nIn a cable to Helsinki now pending at State, we are\nasking Gullion to report on the possibility of using Fin-\nland as an escape route to Sweden from German-held Baltic\nareas, particularly Lithuania, and on the possibility of\ncooperation from the Finnish Government in this connection.\n2. APPROACHES TO THE SATELLITES\nIn response to our request that the International Red Cross\nsend effective -representation to Hungary in order to protect\nthe well-being of groups facing persecution there under\nthe recent German occupation, the IRC has advised Minister\nRegraded Unclassified\n333\n- 5 -\nHarrison in Bern that for the time being it does not con-\ntemplate any such special delegation. The IRC is said to\nfeel that under present circumstances such a mission might\nbe considered as inconsistent with its traditional and\nconventional competence.\nMinister Harrison has also reported on recent developments\nin the Jewish situation in Hungary. Increasing restrictions\nagainst Jews are noted, including those relating to general\nurban accommodations. Aryanization of banks and commercial\nand industrial enterprises is said to be proceeding, The\nestablishment of ghettos or internment centers is also\nforeseen. Mass deportations to the cast, however, are\nreported to hinge upon military developments. Signifi-\ncantly, Jews have been forbidden to leave Budapest despite\nthe official evacuation of that city.\n3. RESCUE AND RELIEF PROJECTS\n(a) Relief to Jews in Rome\nThe American Jewish Joint Distribution Committee\nrepresentative in Portugal reports that 1,400,000 lire have\nalready been borrowed in Rome against the $20,000 credit\nestablished in London for relief to Jewish refugees in\nRome. The recipient organization in Rome, Delasem, has\nasked that the funds originally deposited in London be\ncredited in its name in the United States in dollars, along\nwith such additional funds as may be forthcoming from the\nJDC on the basis of previous requests.\n(b) Abandoned Children from France\nMinister Harrison has advised us that despite repeated\ninformal representations on the part of the Swiss Government\nto Vichy with respect to the release of abandoned children\nfacing deportation in France, Laval's decision was negative,\nwith no-explanation being given. It was urged that no\npublicity be given concerning Swiss intervention in this\nmatter or Vichy's refusal, for fear of halting further\nefforts by the Swiss Government in this direction.\nIn a cable pending at State we are asking Minister\nHarrison and Board Representative McClelland to request\nthat apprepriate instructions be issued to the Swies Le-\ngation at Vichy with respect to a formal approach to\nLaval on the matter. We are also requesting our Ministers\nin Lisbon and Dublin to approach the Portuguese and Eire\nGovernments with requests for parallel action.\nRegraded Unclassified\n334\n- 6 -\nAccording to a report from the JDC representative in\nLisbon, during the past four or five weeks over 300 such\nchildren from France have reached Switzerland clandestinely\nand are being cared for by local groups.\n(c) Evacuations to Italy and the Mediterranean Area\nAccording to a report from the U. S. Legation in\nCairo, the British Foreign Office has instructed its Yugo-\nslavian Embassy to approach Tito with a view to obtaining\nhis active aid in facilitating the escape of Jews from\nHungary through Partisan territory. Our great interest\nin facilitating such escapes to Italy and the Mediterranean\narea, has likewise been indicated in a cable to Cairo.\nOur Legation there has been advised that arrangements\ncan be made for any assistance necessary, including finan-\ncial, in order to enable these refugees to reach places of\nsafety.\n(d) Rescue of Jews in Athens\nWe have learned that 400 Sephardic Jews, Spanish\nnationals residing in Athens, have recently been imprisoned\nin & concentration camp. As a result of intercession by\nthe Holy See, the Spanish Government has on several occasions\nin the past been prevailed upon to recognize groups of\nSephardic Jews in Axis-held territory as Spanish nationals.\nFor this reason, we are cabling Harold Tittmann, U. S.\nrepresentative at the Vatican, asking him to approach Vati-\ncan officials 80 that the Papal Nuncio at Madrid may be\nadvised of this situation and his aid enlisted in obtaining\nSpanish recognition, thereby forestalling deportation and\nalmost certain death.\n(e) Evacuation of Refugees from Finland\nSome time ago Minister Johnson reported from Stockholm\nthat Sweden had refused entry to 113 Jewish refugees who\nhad gone to Finland from central Europe in 1938 and 1939, fact des-\npite repeated requests on Johnson's part and despite the for\nthat the Finnish Government itself had made application\nthe admission of these refugees to Sweden. Johnson sub-\nsequently prevailed upon the Swedish Government to re-\nexamine the case, in view of the danger of serious perse-\ncution, not only to the Jewish refugees in question but to\nRegraded Unclassified\n335\n- 7 -\nlocal Jews and many non-Jewish refugees who would be\nequally threatened as a result of increasing German influ-\nence in Finland. We have now guaranteed to make arrange-\nments for the evacuation from Sweden, as soon as practical,\nof all threatened persons other than Swedes who may be\naccorded. refuge in Sweden, and for the maintenance while\nin Sweden of such refugees who cannot claim the support of\ntheir own governments. As a result, Swedish visas have\nnow been authorized for 100 of the central European refugees\nnow in Finland \"as a starter.\"\n(f) Latin American Passports\nMinister Harrison has communicated to us the details\nof approaches made by the Vatican to various Latin Ameri-\ncan governments in an attempt to work out relief measures\nand possible evacuation plans for Jews interned in Axis\nterritory who hold passports or papers issued by these\ngovernments. Under the circumstances reported, our\nefforts toward exchange arrangements become all the more\nurgent. Accordingly, we are cabling Harrison to proceed\nwith all possible despatch in pressing Spain and Switzerland\nto-inform the German authorities that we are prepared to\nconsider as exchange material all internees in occupied\nterritory who hold Latin American passports. In this\nconnection we are asking Harrison to note that we are\nadvising Latin American countries that this Government does\nnot expect such countries physically to admit any of these\npersons, but that arrangements will be made for refuge\nelsewhere. We are also communicating with the Vatican and\nrequesting its support in our efforts on this basis.\nIn cables to Bolivia, Costa Rica, El Salvador, Guate-\nmala, Haiti, Nicaragua, Paraguay and Peru on the projected\nexchange, the substance of the report concerning Vatican\nefforts is given along with the request that our Ambassa-\ndors impress upon the officials concerned the fact that\nfailure to act will almost certainly spell death for the\npersons involved.\nSince certain individuals among the refugees interned\nin France and Germany claim American citizenship, we are\nasking that Switzerland, as the protecting power, be advised\nthat while such claims are under investigation and until\nthe Swiss Government is advised to the contrary, we expect\nsuch refugees to be treated as U. S. citizens, with all the\nrights, privileges, and immunities to which such citizens\nare entitled.\nRegraded Unclassified\n336\n- 8 -\n(g) Joint Exchange Project\nWe have been urged by the World Jewish Congress to\nmake a special joint effort, with Great Britain, to arrange\nstill another exchange of Jews in German-occupied countries\nagainst German nationals in Allied countries. The WJC\nhas indicated that the candidates for exchange which it\nproposes are some 3500 Jews holding Palestine immigration\ncertificates and whose names have already been supplied by\nthe British Government, through Switzerland as the protecting\npower, to the Government of Germany. Germany is said\nto have accepted this principle of exchange, but the lack\nof German candidates has prevented the exchange from material-\nizing. The holders of these Palestine certificates are\nnow interned in special camps and are in increasing danger\nof deportation as exchange arrangements are prolonged.\n4. COOPERATION WITH THE INTERGOVERNMENTAL COMMITTEE\nDiscussions in Washington with Sir Herbert Emerson and\nPatric Malin of the Intergovernmental Committee have now\nbeen concluded, complete agreement having been reached\nwith regard to our respective fields of operation. Copies\nof an exchange of memoranda between the IGC and the Board\nare being sent: to our representatives abroad, reinforcing\na mutual desire for the closest cooperation between our\nrespective staffs in attempts to alleviate the refugee\nproblem.\n5. PRESS CONFERENCES\nDuring the past week two press conferences were held. In\nthe first instance, Ira Hirschmann was interviewed on\naccomplishments in Turkey. At the second meeting, Sir\nHerbert Emerson and Patric Malin of the Intergovernmental\nCommittee were presented and discussion dealt with the\nagreement reached between IGC and the Board.\n(Signed) J. W. Pehle\nRegraded Unclassified\n337\nApril 22, 1944\n2130 Pollo\nTO:\nMr. Berle\nFROM: J. We Pehlo\nThe Verla Jewish Congress, of 330 West 42nd Street,\nNew York, has informed the War Refugee Board of its desire to\nsend Dr. Solemen Tocker to various countries in Latin America,\nto work as representative of the World Jewish Congress in\nconnection with that organization's action to resoue Jevs from\nGerman occupied areas in Burope. The Board is informed by the\nWorld Jewish Congress that Dr. Tocker has lived many years in\nLatin American countries, has a perfect command of Spanish,\nenjoys excellent connections is Latin American and therefere,\nwould be of distinct value in furthering refuges rescue work\nin that area.\nAs you have the War Refugee Board isdesirous of\nusing the services of any private agency which can assist it\nin recouing Jews of Burope who are in danger of imminent death.\nAccordingly. the Board wishes to register its approval of the\nproposed journey of Dr. Tocker and would appreciate anything\nthat dould be dans to facilitate this journey.\nMore particularly, the Board would request the\nDepartment's cooperation is granting Dr. Tocker the necessary\nre-eatry permit to enable him to return to this country.\nDr. Tocker is a Polich ditisen, admitted to this country as\n& quota immigrant, and has filed his declaration of intention\nis view of obtaining American citisenship. It is understood\nthat be has already filed his application for a re-entry\npermit with the Immigration and Naturalisation Service.\nYou are quare, of course, of the extreme urgency\nof receaing Puropean Sers in Coman-controlled territory, and\nof the importance of @ising the cooperation of Latin American\ncountries to this one I trust, therefore, that you will find\n# possible to emable Dr. Technor to depart on his mission with\nthe least possible delay.\n(Signed) J. V. Pehle\nRAIJUPSING 4/21/44\nRegraded Unclassified\n338\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM: The American Representatives, Algiers\nTO:\nThe Secretary of State, Washington\nDATE: April 22, 1944\nNUMBER: 1337\nCONFIDENTIAL\nThe following message is from Ankermann, War Refugee\nRepresentative No. 14 for the War Refugee Board.\n1. I have again discussed with the Partisan general\nwhom AFHQ referred to us the problem of evacuation of the\nYugoslavs. The immediate need is for from fifteen to twenty\nschooners from one hundred to two hundred in size since the\nrepair of the vessels they own will take some time. Since\nrescue must be done in darkness and since the nights are\ngrowing shorter these vessels preferably should have a speed\nof ten knots at least. For the journey to the Dalmatian\nIslands from the mainland of Tugoslavia small vessels\none to two tons in size are needed,\n2. If allocation can be obtained from MEDIBO in Italy\nthere are available some 200-ton ships. This will be assisted\nby strong direction from a high naval authority or from Admiral\nLand. Motor boats or small ships must be obtained elsewhere\nsince they are not available. As the nights grow shorter the\npresent use of fishing smacks by Yugoslavs becomes more dan-\ngerous.\n3. For additional report on the Yugoslav situation which\nis being sent directly from Bari, please get in touch with\nRobert Wolff, Balkan Desk, R. and A. Branch, Office of\nStrategic Services, Washington,\nCHAPIN\nDCR:MPL\n4/25/44\nRegraded Unclassified\n339\nORIGINAL TRXT OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmlegation, Gaire\nDATED:\nApril 22, 1944\nNUMBER:\n30\nSECRET\nFrom Var Befuges Board to MacVeagh.\nWar Refuges Beard is extremely interested in\npreject involving escape of Jews from sccupied\nterritory to Italy and Mediterranean region. Please\nadvise Mar Refuges Board of any further developments\nin this situation, particularly result of mentioned\nappreach to Tite. Board is prepared to arrange for\nany assistance, including funds.\nHULL\nRegraded Unclassified\n340\nCABLE TO LONDON\nFrom War Refugee Board to Winant\nIf en answer has not yet been received from the\nBritish with respect to the proposal to establish refugee havens\nin Cyrenaica and Tripolitania as outlined in our No. 2292 of\nMarch 25, 1944, please inquire when answer may be expected.\nApril 22, 1944\n11:15 a.m.\nRegraded Unclassified\n341\nPLAIN\nON-349\nLonden\nDated April 22, 1944\nRec'd 1:25 Pollo\nSecrdary of State,\nWashington.\n3817, treaty-cosent.\nPlease instruct cancerning action 18 take en\ntravel phority and passport Unlidation raised by\nfollowing letter dated April 20th from American Joint\nDistribution Office at London just established by\nDonald Harvits.\nThe American Joint Distribution Committee is\ninterested is establishing an office in Sweden in order\nto extend and more effectivity carry out its program of\nrelief and rehabilitation. The representative assigned\nto establish this effice is Miss Lanra Margelis, an\nAmerican citisen, who is now in Lisbon, Portugal.\nWe have been informed that transportation to Sweden\nis sev abailable, this being a prerequisite to having\nher passport validated for Sweden, and for England in\ntransit. M present we should like very such to ob-\ntain a prierity for travel to Sweden for Miss Margolis\nin which case a validation would be granted. Will gou\nbe kind enough to take this matter up with Washington\nso that ve my secure a prierity and in turn the neo-\nessary validations and visas\".\nWar Befugee Board my be interested. Unless Miss\nMargelis has agecial passport indicating that she is\ntravelling en efficial business the Embassy understands\nthe transportation facilities would not be granted and\nis all probability Svedish visa could net be obtained.\nWINANT\nVSD\nRegraded Unclassified\n342\nORIGINAL TEXT OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmembassy. London\nDATED:\nApril 22, 1944\nNUMBER: 3243\nSECRET\nFrom War Refugee Board to Winant.\nIf an answer has not yet been received from the\nBritish with respect to the proposal to establish\nrefugee havens in Cyrenaica and Tripolitania as out-\nlined in our No. 2292 of March 25, 1944, please\ninquire when answer may be expected.\nHULL\nRegraded Unclassified\n343\nCABLE TO THE AMERICAN CONSULATE GENERAL AT JERUSALEM\nPlease deliver the following message from War Refugee\nBoard to Rabbi Joseph Mishkowski, Meker Chaim, Jerusalem:\nQUOTE Necessary you immediately send influential\noutstanding delegate to Istanbul to cooperate with Griffel.\nRemitted 25.000 dollars under license 617451-R to Jacob\nGriffel, Hotel Continental, Beyoglu for rescue. Sternbuch\nalso remitted to him 25.000 francs. Sternbuch cables urgency procuring\nunlimited number of veteran certificates for Rabbis and religious\nleaders in grave danger in Hungary and Lithuania. Sternbuch\nreports these certificates useful for internment privileges in\noccupied territories and for possibilities of exchange. Necessary\nyou inform American Consulate names of your Vaad Hatzalah Com-\nmittee and your activities to enable consulate to lend you every\nsupport possible. Vaad Hatzalah Emergency Committee, Rabbis\nRosenberg, Silver, Levinson, Kotler, Kalmanowitz. UNQUOTE\nApril 22, 1944\n11:15 a.m.\nRegraded Unclassified\n344\nCIRCULAR\nsacuer\nSent by Secret Courier\nSecret\nApril 22, 1944\nSECRET CIRCULAR AIRGRAM\nFOR THE PERSONAL AND CONFIRENTIAL INFORMATION OF THE anbassadors\nAP TEQUCISALPA, SAN JOSE, QUITO. SAN SALVADOR, PONSeau-PRINCE,\nLIMA, MANAGUA AND CARACAS.\nReferring to the Department's circular airgram of April 10,\n11:00 Balle, and of March 31, 1205 PORTO the following is the sub-\nstance of a message received from Lendon by Sir Herbert Emerson,\nDirector of the Intergovernmental Committee, who is new in Washington:\nQUOTE According cables Jewish Agency, Jerusalem, new commander\nVittel Camp advised March 20 about 250 to 300 internees helding South\nAmerican passporte that they were not recoggized by government OD-\ncerned. It is alleged these persons already isolated for deportation\nwhich caused panic and despair. Agency here has partial list of\npeople affected, mostly Polish Jews previously put on list of veteran\nZionists, Rabbie, et cetera, for grant of Palestine certificates.\nAgency trying to obtain from Colemial Office formal assurance to\nSwiss protecting power that these persons placed on Palestine exchange\nlist in order to tave off deportation UNQUOTE.\nIn view of the imminent danger which faces the persons involved,\nand in the light of this Government's deep consern for their welfare,\nyou should communicate to appropriate officials of the Government to\nwhich you are accredited the urgency with which favorable responses\nand active seasures along the lines described in our circular airgrams\nof April 10 and March 31 are needed. You may also wish to inform\nsuch efficials that in addition to the approach to Switserland\nreferred to in our circular airgram of April 10, we have also\nrequested Ambassador Hayes similarly to approach the Spanish Govern\nment. Please keep the Department promptly advised of all develop-\nments is this matter.\nHull\nHULL\nSent tet Headuras, Costa Bica, Boundor, B1 Salvador, Haiti, Peru,\nNicaragua and Venesuela.\nARA\nVE\nSWP\nWHB:GLW:KG\n4/19/44\nRegraded Unclassified\n345\nAIRGRAM\nFrom: American Embassy, Habana\nDate: April 22, 1944\nRec'd: Apr 27 10a\nSECRET\nSecretary of State,\nWashington, D. C.\n34\nDepartment's confidential circular airgram, April\n15, 78p.m.\nThe Joint Relief Committee in Habana, local branch\nof the Joint Distribution Committee in the United States\nis the private agency here most qualified and reliable to\ncarry out such work, Its local representative states that\nhe is ready to cooperate but that would have to obtain au-\nthorization from his head office. At the Embassy's re-\nquest, he has taken no action on the matter.\nI feel that if the choice of a private agency were\nleft to the Cuban authorities, local irregularities would\nprobably occur, particularly in the distribution of funds.\nIn this connection the Department will recall the dsigrace-\nful record of the Cuban authorities with reference to the\nrefugee situation (see despatch No. 6149 of March 1): also\nthe inclusion of Inc Gustavo GUTIERREZ AND Manuel PEREZ\nBenitoa on the recently created Cuban War Refugee Board\nis not encouraging. A recent example of the Cuban Gov-\nernmant's attitude was its unsuccessful attempt to swindle\nrefugees out of $700,000 by freezing the deposits required\nof immigrants entering Cuba.\nI therefore suggest that, before I inform the Cuban\nGovernment of the contents of the airgram under reference,\nthe Department ascertain whether the Joint Distribution\nCommittee would be willing to undertake such a program in\nCuba. My approach to the Cuban Government might then be\n(1) to request it to assure the Swiss Government that it\nwill be willing to accept a fixed number of refugee chil-\ndren and (2) to state that I am informed that the Joint\nDistribution Committee would be prepared to care for the\nchildren, through the Joint Relief Committee in Habana,\nand to make arrangements to provide the latter with the\nnecessary funds.\nBRADEN\n711\nEMH/jm-dsc\nRegraded Unclassified\n346\n129\n6845 p.m.\nSent by Secret C ourier\nAMEMBASSY,\nASUNCION (PARAGUAT).\nApril 22, 1944\nFOR THE PERSONAL AND CONFIRENTIAL INFORMATION or THE AMBASSADOR.\nReferring to the Department's 118 of April 10, the fellowing\nis the substance of a neceage received from Londen by Sir Herbert\nImerson, Director of the Intergovernmental Committee, who is now\nin Washington: QUOTE According cables Jewish Agency, Jerusalem,\nnow commander Vittel Gasp advised March 20 about 250 to 300 internees\nholding South American passports that they were not recognised by\ngovernment concerned. It is alleged these persons already iselated\nfor departation which caused pamic and despair. Agency here has\npartial list of people affected, mostly Polish Jews previously put\non list of veteran Siemists, Rabbis. et cetera, for grant of Palestine\ncertificates. Agency trying to obtain from Colemial Office formal\nassurances to Guiss protecting power that these persens placed on\nPalestine exchange list in order to extave off deportation UNQUOTE.\nIn view of the imminent danger which faces the persons involved,\nand is the light of this Government's deep concern for their velfare,\nyou should communica to appropriate officials of the Government of\nwhich you are accredited the urgency with which faverable responses\nand active measures along the lines described in our 118 of April 10\nare needed. You may also wish to inform such officials that in\naddition to the approach to Switserland referred to in our 118\nof April 10g we have also requested Ambassador Kayes similarly\nto approach the Spanish Government. Please keep the Department\npremptly advised of all developments in this matter.\nHULL\nVEB:GLN:KG\nARA\nVS\nSWP\n4/19/44\nRegraded Unclassified\n347\nAIRGRAM\nBY SECRET COURIER\nfrom\nAsuncion\nDate: April 22, 1944\nRec'd: May 1 8 Bello\nSTRICTLY COMPIDENTIAL\nThe Secretary of State,\nWashington.\n4-139, April 22, 10:00 a.m., 1944\nI teek up with the Foreign Minister on April 20 the\npoints raised in the Department's recent circular airgram,\nA-118, 11:25 Bolleg April 11, 1944, (whose special directions\nhave received compliance.)\nThe Minister at first stated that be was unaware of\nany inquiries from the Spanish Government with regard to\neastern Europeans in German concentration camps who hold\nParaguayan passports. He was familiar with the general\nquestion, however, and affirmed that his Government will\nsteadfasty recognise the validity of such passports until\nthe war shall have terminated.\nThe Minister provisionally took a favorable attitude\nwith regard th securing an exchange of persons holding\nParaguayan passports for persons of German nationality\ninterned in the United States or elsewhere in the Americas.\nHe accepted the view that this my bring the possibility\nthat Easi agents in Paraguay,- some of whom are apparently\nabout to be interned here.- could eventually be repatriated\nto Germany. Be made written note of the fact that if any\nbone fide Paraguayan citisens are found in the German co De\ncentration camps they will be given preference in any 02-\nchange; and also that persons holding Paraguayan passports\nwho are not in reality Paraguayans will not be sent to\nParaguay. (On this latter point be assumed that in case\nany such persons vere shown to be skilled agriculturists.\nParaguay could and would receive them.) Be also clearly\nundersteed that this proposal is being made by our Govern-\nment to the governments of the other Latin American countries\ninvelved. Be stated that if the Spanish Government on be\nhalf of the German authorities should submit lists of per\nsens holding such passporte, the reply would be that the\npassporte are being maintained.\nThe Foreign Minister likevise inseribed in his notes\nthe request that the Paraguayan Government affirmatively\nappreach the German Government.- by addressing a note to\nthe protesting power, Spain, through its Charge d'Affaires\nhere. to demand that the Paraguayan passporte be honored\nand the......\nRegraded Unclassified\np/2, S.C. Airgram A-139, pril 22, 10 a.m. Asuncion\n348\nSTRICTLY CONFIDENTIAL\nRegraded Unclassified\nand the holders respected as regards their lives, rights\nand privileges.\nMy visit was timed to precede immediately a Cabinet\nmeeting; and the Foreign Minister promised to take up the\nmtter with the President after the Cabinet meeting. He\nstated be was confident of receiving the President's per-\nmission to give definitively favorable responses on all\nthe points raised (especially, (a) the approval of nego-\ntiations by the United States with Germany for exchanges,\nand (b) the making of an admonitory remonstrance by Paraguay\nto Germany).\nDr. CHIRIANI then summoned the Undersecretary, who\nhas been in charge of the problem for some months past;\nand the latter took as to his office and showed me net of\nthe correspendence file. From the file, and from the Under-\nsecretary's statements, the following situation was developed:\nby Decree No. 207 of September 4, 1943, the Paraguayan\nSupreme Court decided (a) that Sr. Rodelfe HUGLI, Paraguayan\nHonorary Consul at Berne, Switserland, should be dismissed\nfrom his position, and (b) that the passports which he had\nissued to eastern Burppeans whowing them to be Paraguayana\nshould be annulled.\nDuring the next three or four months, however, the\nParaguayan Government received appeals from Poland, Belgium\nand Holland through their representatives at Buenes Aires\nrequesting that the passports not be annulled, for humani-\ntarian reasons) and late in December had the same request\nfrom this Mabassy, undo at the Department's suggestion.\nthe reply given in all cases was that the Paraguayan\nGovernment had not cancelled the passports in question and\ndid not intend to do so while the var continues. (See\nmy telegram No. 688, December 28, 3:30 p.m., 1943.)\nOn January 2, 1944, the Foreign Office addressed the\nSpanish Charge d'Affaires at Asuncion, in response to a\nnote received from hime stating that Consul Hugli had\npossessed to legal right to confer Paraguayan nationality;\nbut that while the Supreme Court had ordered him to be\ndismissed and the passports to be treated as null, never-\nthelese the latter part of this order would not be placed\ninto effect until after the termination of the Buropean\nWare It further requested the Charge to telegraph to his\ngovernment asking 1t to inform the Corner Government that\nthe passports are still recognised as valid. On January 3,\nthe Foreign Office addressed two separate instructions to\nthe Paraguayan Ambassador in Bacaos Aires, who had been\napproached by the Dutch and Polich Ministers in that capital.\nBe was told to inform the Ministers in question(1) that\nthe passporte were recognized as valid for the duration of\nthe war and (2) that it had requested the Spanish Charge\nhere 80.....\n349\n9. 3, S.O. A-139, April 22, 10 alm,, Asuncion\nSTRICTLY CONFIL NTIAL\nhere se to inform the German Goverment telegraphically\nvia Madrid. On February 8 the Foreign Office addressed a\nfurther note to the Spanish Charge confirming its previous\nnote.\nThe Chairman of the Paraguayan Red Cross, Dr. Andres\nBARBERO, visited the Foreign Office early this month on\nbehalf of a list of forty cases of interned eastern\nBuropeans helding Paraguayan passports. He received\nassurances.\nOn April 10 the Spanish Charge communicated again with\nthe Foreign Office to the effect that since Paraguayan law\nprovides that a Consul can not confer Paraguayan nationali-\nty there was not perceived legal consistency in Paraguay's\nposition in continuing to regard the passports as valid.\nOn April 17 the Foreign Office replied flatly and simply\nreasserting its attitude. (While its note did not 80\nstate, the theorpy of the Paraguayan Foreign Office seem\nto be that the Supreme Court Decrde declaring the passports\nnull need not be given effect immediately.) The Charge\nof Spain vas informed that this Paraguayan action was tallen\nas a result of intercessions by the governments of Poland,\nBelgium, Holland and (informally) the United States, as\nwell as of several philanthisopic organizations, and that\nit is based on humanitarian grounds.\nIn response to informal inquiry on the 21st instant\nthe Foreign Minister dtated that he had not yet received\nan affirmative decision as to exchange negotiations and a\nParaguayan demand upon Germany.\nFROST\n801.2\nWF/ajl\nRegraded Unclassified\n350\nPARAPHRASE OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\ntos\nAmerican Legation, Lisbon\nDATED:\nApril 22, 1944\nNUMBER: 1133\nCONFIDENTIAL\nThe Treasury has issued license number W-2177 to the\nJewish Labor Committee, New York City, and you are requested\nto inform Paulo Duarte, 17 Rua Padre Antonio, Vierira, Lis-\nbon, that notwi thatanding General Ruling Number 11, he is\nauthorized, as their representative in Portugal, to commun-\nicate with persons in enemy or enemy-occupied territory for\nthe purpose of arranging for the evacuation of persons in\nsuch territory in imminent danger of their lives, to such\nplaces of safety or relative safety as he may select.\nLicense W-2177 is exactly identical with license num-\nber W-2154 which is described in Department's message of\nMarch 18, no. 800, which was issued to the Joint Distribu-\ntion Committee, except that Section (B) is identical with\nsection (B) of license W-2167 described in Department's\nmessage of April 8, no. 991,\nYou should deem Department's comments in our cable of\nMarch 18, no. 800. to apply to License number W-2177 to the\nsame extent as if fully not forth herein, Also you are re-\nquested to inferm Duarte that the Jewish Labor Committee is\nremitting the escudo equivalent of $10,000 to begin operations.\nHULL\nRegraded Unclassified\n351\nLBG-374\nPLAIN\nLisbon\nDated April 22, 1944\nRec'd 5:15 P.M.\nSecretary of State,\nWashington.\n1208, twenty-second, 2 p.m.\nFOR WAR REFUGER BOARD.\nVEB 3. Acknowledging Department's telegram 1097,\ntwentieth, VEB 3.\nRemittance received. Thanks, Will keep reco rd and\nreport. Regarding personal expenses, do you wish to\ncover all expenses as has been case heretofore or have\nyou per diem or other arrangement.\nNORWEB\nLMS\nRegraded Unclassified\n352\nDME-435\nPLAIN\nLisbon\nDated April 22, 1944\nRec'd 8:45 P.M.\nSecretary of State,\nWashington.\n1209, twentysecond, 4 p.m.\nVEB 4. Please send following Unitarian Service\nCommittee, 25 Beacon Street, Bostent\n\"Greatly disturbed delay Howard Breck's North\nAfrican validation. Urgent be accept French Committee's\ninvitation sconest. he has French visa laisses passer\nand Ambassador Wilson approval. Sigged Elisabeth Dexter.\"\nNORWEB\nLMB\nRegraded Unclassified\n353\nNNO-425\nLisbon\nThis telegram must be\nparaphrased before being\nDated April 22, 1944\ncommunicated to anyone\nother than a Government\nRec'd 7:52 p.m.\nagency. (s000)\nSecretary of State,\nWashington.\n1214, April 22, 6 p.m.\nWHB number five.\nRequested by Joseph Schwarts following for War\nRefugee Board and Leavitt joint distribution New York:\n\"Six children arrived in Spain as first group and\nmore are expected to follow.\nGuides arranged by us brought them thru Pyrennes and\nthey are now in our care in Barcelona. In addition\n26 adults came into Spain which makes a total of 94\nnew arrivals there. Will attempt to provide children\nwith visas under United States Commission plan or,\nin case of those having close relatives there or\npreferring Palestine, certificates for Palestine\".\nNORMEB\nWSB\nRegraded Unclassified\n354\nCABLE TO MINISTER JOHNSON AND OLSIN, STOCKHOLM, FROM WAR REFUGEE BOARD\nPlease deliver the fllowing message from War Befugee Board\nto Rabbi W. s. Wolbe, 11 Olefsgatan, Steckholm, Swedent\nQUOTE Gravely disturbed your report of Litbuania. Cable\nWar Refugee Board for us through American Legation your rescue plans\nand if you can utilise funds for relief and resous of Rabbis and\nreligious leaders is Lithmania. Have cabled 85,800 Buiss france to\nRabbi Shoulevits through Switzerland. Vand Hahatzalah Emergency\nCommittee, Rabbie Aaron Ketler and Abraham Kalmanowits. UNQUOTE\nTHIS IS VED STOCKHOLM CABLE NO. 5\nApril 22, 1944\n11:15 Bollo\nBAksin:LSLessertals 4/21/44\nRegraded Unclassified\n355\nCABLE TO BREN\nFrom War Befuges Board to Harrison\nYour 1754 delayed and just received by War Refugee Board.\nMcClelland's appointment Special Attache on War Refugee Board matters\napproved effective immediately. He should receive base salary of fifty-\nsix hundred dollars per annum and seven dollar per diem allowance effective\nwhen he assures duties. Salary and per diem payments. as well as miscellaneous\nadministrative expenditures such as travel, clerical staff if needed, office\nsupplies and equipment, and rental if necessary. should be paid directly by\nthe Legatich through usual channels, for which Department will be reimbursed\nby War Refugee Board here. In addition, ten thousand dollar credit in\nconfidential funds for McClelland from President's Emergency Fund being\nestablished at once for which Mc01elland will be responsible to Pehle alone.\nThese confidential funds are not subject to usual government disbursing\nrequirements but McClelland should keep careful record and obtain receipts\nwhere possible. These funds may be used at McClelland's discretion but\nshould not (repeat not) be used for administrative expenses of the sort\nbeing handled through the regular channels of the Legation. McClelland's\nduties are as described in our 659. Let us know at once of any obstacles.\nApril 22, 1944\n11:16 gells\nWitewart; pdk 4/20/44\nRegraded Unclassified\n356\nCABLE TO BEN\nFrom War Refugee Board to Harrison for McClelland\nBoard delighted that you have accepted appointment\nas its Special Representative. Pehle sends personal thanks and\nfeels confident that you will do competent job. War Befugee\nBoard will support you to fullest extent. Phease do not\n(repeat not) hesitate to make frequent comments and suggestions.\nTHIS IS WEB BREN CABLE NO. 3\nApril 22, 1944\n11:15 a.m.\nMJNarks:lsk 4/21/44\nRegraded Unclassified\n357\nCABLE TO MINISTER HARRISON AT BERN\nPlease deliver the following message from War Refugee\nBoard to Isaac Sternbuch, Postfach 168, St. Gallen, Switzerland;\nQUOTE Greatly pleased with your April 7th message.\nSuggest necessity that such couriers be supplied with larger\nsums and that such funds be given to outstanding personalities,\nleaders of communities and former heads of Yeshivoth to save\nthemselves in whatever possible manner. Ready supply you\nadditional funds on request. Vaad Hatzalah Emergency Committee\nRabbis Rosenberg Kotler Kahmanowitz. UNQUOTE\nTHIS IS WRB BERN CABLE NO. 4\nApril 22, 1944\n11:15 s.m.\nRegraded Unclassified\n358\nDRAFT OF CABLE TO AMERICAN LEGATION, BEEN\nFOR MINISTER AND McCLELLAND\nPlease request Pilet Golas to issue the instructions to\nSwise Legation at Vichy as suggested in first paragraph your\n2315 of April 14. In view non-objection Pilet Golaz we are\nappreaching Portuguese and Bire Governments with request for\nparalles action. Var Refuges Board would welcome any addi-\ntional suggestions you may have for expediting emigration\nfrom France of orphaned and abandoned children subject to\nenemy persecution.\nFor your information consular officers in Spain and\nPortugal have received instructions similar those trans-\nmitted Departments's 891 for issuance 1,000 immigration\nvisas. Governments of Canada and Australia and appropriate\nother American republics are being approached with sugges-\ntion that they make similar offers to Swiss Government\nregarding children.\nTHIS IS WEB BREN CABLE NO. 5\nApril 22, 1944\n13:20 p.m.\nMSTandishilem\n4-21-44\nRegraded Unclassified\n359\nORIGINAL THET OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmlegation, Bern\nDATED:\nApril 22, 1944\nNUMBER: 1395\nCONFIDENTIAL\nReference year No. 2301 April 13, 1944, The Turkish\nGovernment has already acted in support of the ICRC request\nfor safe cenduct for the ss TARI. The Swedish Government\nhas been asked to support such wquest and has agreed to\nde 80. ^ccerdingly you may care to bring these facts to\nthe attention of Swise Government in an effort to persuade\nit to reconsider its decision. Please keep the Department\nand War Refugee Beard advised on this matter.\nTHIS IS WRB BERN CABLE NO. 2\nRegraded Unclassified\n360\nORIGINAL TEXT OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmlegation, Bern\nDATED:\nApril 22, 1944\nNUMBER:\n1400\nCONFIDENTIAL\nReference Department's 1221 of April 10 and 1181\nof April 7. Our Embassy in Madrid has been fully advised\nconcerning the situation of internees at Vittel and other\ncamps who hold passports, consular documents and other\npapers issued in the name of certain Latin American\ncountries. The Department's above-mentioned No. 1221 of\nApril 10 was repeated to Madrid. Our Embassy there was\nrequested urgently to report to the Spanish Government\nthis Government's preoccupation with this matter and inform\nit of our pending discussions with Latin American countries\nregarding a further exchange of civilians with Germany, of\nour view that persons in Vittel and elsewhere holding Latin\nAmericanjapers are eligible for such exchange and of our\nexpectation that pending such exchange they would be ac-\ncorded the same treatment which Germans wish to see accorded\ntheir civilians in the Western Hemisphere. It was requested\nthat the Spanish Government be urged to act in Madrid and\nBerlin to the end that these persons be given every possible\nprotection and that it take steps immediately to correct the\nimpression which might have been created in Berlin regarding\nthe alleged lack of concern of the countries of the Western\nHemisphere in the treatment of persons holding papers issued\nin their name.\nWith respect to the 238 persons who you reported to have\nbeen evacuated from Vittel, our Embassy was instructed to\nrequest the Spanish Government to make every effort to secure\ntheir return to Vittel.\nPlease convey the above information to Riegner, Isaac\nSternbuch and other interested organizations. Explain to\nthem fully the steps which this Government is taking through\nthe Swies Government and advise them that cables have been\nmemb to the Latin American countries in whose names papers\nhave been issued opening discussion on the subject of\nexchange of nationals.\nOn behalf of the War Refugee Board, please deliver\nthe following message to Isaac Sternbuch from the Vaad\nHahatzala Emergency Committee:\n\"Please ascertain conditions at Camp Zelle,\nInform us if you have contact with said camps\nand what can be done.\"\nSuch message should be delivered after you have fully\nadvised Sternbuch as requested above.\nHULL\nRegraded Unclassified\n361\nORIGINAL TEXT OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmlegation, Bern\nDATED:\nApril 22, 1944\nNUMBER: 1402\nCONFIDENTIAL\nFROM THE WAR REFUGEE BOARD TO HARRISON, BERN.\nThe War Refugee Board requests that you deliver the\nfollowing message to Islambek Khan, Afghan Legation, Bernt\nQUOTE Proceeding abroad on business expect to arrive Palace\nHotel, Lisbon, May 3. Please come and see me in Lisbon as\nsoon as possible. Signed David Paul Joffo. UNQUOTE.\nHULL\nRegraded Unclassified\n362\nTELEGRAM SENT\nRP\nPLAIN\nWar Refugee Board\nApril 22, 1944\nAMLEGATION\nBERN.\n1405, Twenty-second\nFOR THE MINISTER. Please deliver the following to\nMcClelland from War Refugee Board.\nWRB no. 3.\nBoard delighted that you have accepted appointment\nas its Special Representative. Wahle-sends personal thanks\nand feels confident that you will do competent job. War\nRefugee Board- will support you to fullest extent. Please\ndo not (repeat not) hesitate to make frequent comments and\nsuggestions.\nHULL\n(GLW)\nWE A-S/3\nFA\nWRB :GLW:KG\n4/22/44\nRegraded Unclassified\n363\nPARAPHRASE OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmerican Legation, Bern\nDATED:\nApril 22, 1944\nNUMBER: 1406\nSECRET\nReference is made herewith to your cable of April 14,\nNo. 109.\nSuch safe conduct as the British Government may agree\nto for the movement of the Tari from Istanbul to Constansa\nand from thence to Haifa carrying Jewish refugees, is con-\ncurred in by the Government of the United States. In De-\npartment's cable of March 23, no. 970, the Department had\nrequested the Legation to inform Intercross that this Gov-\nernment concurred in safe conduct for movement of Tari be-\ntween Constansa and Istanbul,\nHULL\nRegraded Unclassified\n364\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAmerican Legation, Bern\nTO:\nSecretary of State, Washington\nDATED:\nApril 22, 1944\nNUMBER: 2581\nCONFIDENTIAL\nReference is made herewith to Department's cable of\nApril 8, no. 1198.\nIt is stated by Intercross that it is preparing re-\nplies to questions one, two and four. Concerning three,\nIntercross believes that if Joint Distribution Committee\npurphase foodstuffs in Portugal for delivery to Intercross\ndelegate in Lisbon, matter would be simplified.\nHARRISON\nRegraded Unclassified\n365\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAmerican Legation, Bern\nTO:\nSecretary of mate, Washington\nDATED:\nApril 22, 1944\nNUMBERS 2591\nCONFIDENTIAL\nReference is made herewith to By cable of March 25,\nno. 1852.\nIt is reported by Riegner that in fourth transaction\nhe has purchased further million French france from Stitel-\nseve at rate of Swies france 1.70 por hundred French france.\nIt is stated by Riegner that he is receiving satis-\nfadery reports on continuation of rescue action in France\nand evacuation of Jewish groups to 8 pain from Belgium,\nHolland, and France continues without interruption. A do-\ntailed report on these operations is promised b): him.\nHARRISON\nRegraded Unclassified\n366\nPARAPHRASE OF TELEGRAM RECEIVED\nFROME\nThe American Minister, Bern\nTO:\nThe Secretary of State, Washington\nDATE:\nApril 22, 1944\nNUMBER:\n2592\nCONFIDENTIAL\n1. It is requested by Jewish organization here that\nthe funds in question be placed to the credit of Delasem\nafter being retransferred to the United States and placed\nin any convenient American bank. This request has already\nbeen telegraphed to London by Osborne. To enable me to ad-\nvise the representative please inform me by telegram if and\nwhen the operation is completed and I should like also to\nknow the name of the bank.\n2. It is requested by organization here that another\ntwenty thousand dollars be deposited for the account of\nDelasem in the above mentioned American bank. When this is\naccomplished please advise me by cable.\nHARRISON\nDCR:MPL\n4/24/44\nRegraded Unclassified\n367\nCORRECTION\nApril 22, 1944\nIn cable from Ankara 688 April 15 for War\nRefugee Board, line 7 delete \"presidents\" insert\n\"presidency\" delete \"Centred\" insert \"Center\". Line\n8 \"resche\" should read \"rescue\".\nDIVISION OF COMMUNICATIONS AND RECORDS\nCSB\nRegraded Unclassified\n368\nPARAPHRASE OF TELEGRAM RECIEVED\nFROM:\nThe American Ambassador, Ankara\nTO:\nThe Secretary of State, Washington\nDATE:\nApril 22, 1944\nNUMBER:\n725\nCONFIDENTIAL\nAs Ankara's number 41 the following message is for the\nWar Refugee Board.\nThis morning I was advised by the representative of\nthe Intercross that an intimation had been received by him\nfrom Intereross that if the destination of the SS TARI is\nchanged from Haifa to Iskanderun a German safe conduct for\nthe ship might be granted. I have advised Simond that only\nafter all hope of securing a German safe conduct to Haifa\nmust be abandoned would the change be agreeable. Trans-\nshipping the refugees at Iskenderun to a United Nations ship\nwould be involved in such a change of destination.\nSTEINHARDT\nDCR:MPL\n4/25/44\nRegraded Unclassified\n369\nPARAPHRASE FOF TELEGRAM RECEIVED\nFROM:\nAmerican Rubassy, Ankara\nTO:\nSecretary of State, Washington\nDATED:\nApril 22, 1944\nNUMBER: 726\nCONFIDENTIAL\nFollowing is Ankara no. 42 for the WRB.\nReferwing to the unreserved confidence which Simond\nexpressed to Hirschmas that von Paper would secure the German\nsafe=senduct for the ss TARI without delay and that if\nit has not yet been secured, the Apostelic Delegate to Istan-\nbul and Simond try to ⑉ ven Paper to prese the request\nand that I confer with Simond personally without delay,\nplease inform Hirschman that since his departure, I have\nbeen in constant contact with Simond who has how conferred\nwith ven Paper on three occasions and that in addition,\nthe Turk Minister for Foreign Affairs, at my request, has\npersonally twice requested the German safe-conduct of von\nPapen. From the reports I have received from the Turkish\nMinister for Foreign Affairs and Simond, I as satisfied\nthat ver Paper has been pessing for the safe-conduct\nfrom his Government.\nSTEINHARDT\nRegraded Unclassified\n370\nRECT-561\nAnkara\nThis telegram must be\nparaphrased befo e being\nDated April 22, 1944\ncommunicated to anyone\nother than a Government\nRec'd 7:55 p.m., 23rd.\nAgency. (BR)\nSecretary of State,\nWashington.\n732, April 22, 3 p.m.\nFOR THE WAR REFUGEE BOARD FROM THE AMBASSADOR\nAnkara number 43.\nI perceive no objection to the Board raising with\nthe Turkish Ambassador in Washington the danger of\ndeportation to approximately 800 Jews in France who\nclaim Turkish nationality.\nDepartment's number 350, April 19.\nAs the Board is aware the Minister for Foreign\nAffairs at my request has on two occasions telegraphed\nthe Turkksh Ambassador in Vichy to lend every possible\nassistance to these individuals. It 1s quite possible\nthat, on receiving word from his Ambassador in Washington\nthat he has been approached, the Minister may again\ncommunicate with the Turkish Ambassador in Vichy.\nSTEINHARDT\nWTD\nRegraded Unclassified\n371\nNOB - 563\nAnkara\nThis telegram gran must be\nparaphrased before being\nRated April 25, 1944.\ncommunicated to anyone\nother than a Governmental\nRec'd 7:50 p.m.\nagency.\n(BR)\nSecretay of State,\nWashington.\n733, April 23, 4:00 p.m.\nANKARA NUMBER 44 FOR THE WAR REFUGEN BOARD\nFROM THE AMBASSADOR.\nDepartment's number 351, April 19.\nI very such appreciate the Board's generous\ntelegram and shall of course continue by efforts to\nfacilitate the disembarkation and transit through\nTurkey of refugees irrespective of whether their\narrival in Turkish ports is legal or illegal.\nSTRINHARDT\nNH\nRegraded Unclassified\nTreasury Department\n372\nDivision of Monetary Research\nDate May 5, 1944 19\nTo:\nMiss Chauncey\nI think the Secretary would\nlike to read this.\nH.D.W.\nMR. WHITE\nBranch 2058 - Room 214-1/2\nRegraded Unclassified\n373\nTHE FOREIGN SERVICE\nOF THE\nUNITED STATES OF AMERICA\nM\nAMERICAN EMBASSY\nRio de Janeiro, Prazil, worll 22, 1944.\nMy dear Mr. Secretary:\nI have received your letter of April 13, 1944,\ntransmitting B. draft of the joint statement of experts\non the establishment of an international monetary fund.\nAS mentioned in my telegram to you of April 20, I trans-\nmitted the finel revised draft to Finance Minister\nArthur de Souza Costa, who expressed his appreciation\nfor your thoughtfulness and courtesy in suggesting\npublication in Rio de Janeiro simultaneous with release\nin Washington and London.\nThe text was published in full in today's local\npress and the plan 1s receiving widespresd and favor-\nable publicity in the newspapers and over the radio. As\nof possible interest to your organization, I enclose B\ntranslation of the Finance Minister's public statement\nwhich accompanied the publication of the text.\nDr. Octavio Bulhoes, Brazil's technical expert in\nmonetary matters, has informed me of his favorable re-\naction to the preliminary discussions held in Wishington\nlast year with Dr. Harry White and his associates.\nIf in the future I can be of assistance to you in\nthis or any other matter, please do not hegitate to call\nupon me.\nSincerely,\nEnclosure:\nTransl РАУШОНЯ\nThe street\nHenry Morgenthau, Jr.\nSecretary of Treasury,\nWashington, D.\nC\nto\ndossess\nRegraded Unclassified\n374\nACK-400\nPLAIN\nDEPARTMENT OF STATE Mexico\nAPR\nDATED April 22, 1944\nTIONS\nRECORDS\nREc'd 6:04 p.m.\nSecretary of State,\nWashington.\n605, Twenty-second\nFOR THE SECRETARY OF THE TREASURY FROM THE AHBAS-\nSADOR.\nAll principal Mexico City ARILIES this morning\ncarry front-page banner headlines and full text of\njoint statement by Experts on the Establishment of\ninternational monetary fund, clippings are being\ntransmitted by air mail despatch.\nMESSERSMITH\nCAW\nRegraded Unclassified\n375\nNOT TO BE RETRA SMITTED\nCOPY NO. 11\nSECRET\nOPTEL NO. 129\nInformation received up to 10 a.m. 22nd April, 1944,\n1.\nNAVAL.\nAnzio. 20th. Ineffective attac by humai torpedoes,\none of which captured intact and two others probably sunk by\npatrol craft.\nSituation Bombay much improved. Alexandra dock\nworking normally and clearance atPrinces and Victoria docks\nproceeding well,\nOne of H.M. Submarines off Andamers probably sank\n3,500 ton escorted ship 14th and sank a Destroyer 15th.\n2.\nAIR OPERATIONS\nWestern Front. 20th/21st. Total 4720 tons dropped by\nR.A.F. as follows:-\nCologne. 1020 tons H.E., 722 incondiary including 244\n4,000 pound H.E. thick cloud; almost impossible see markers and\nflares rapfdly lost in clouds; several earlier crews bombed\non estimated time arrival. Vevertheless attack appeared well\nconcentrated. Ground defences ineffective; few fighters.\nLa Chapelle. 1224 tons H.E. attack in 2 phases at about\n1- hour interval. Weather clear, some haze. Flares accurate\nand initial bombing well concentrated but somewhet scattered\nlater on account of smoke spoiling visibility.\nOttignies. 910 tons H.E. weather clear, but ground\nhaze and smoke rendered assessment difficult though bombing\nappeared accurately concentrated on markers. No round defences;\nfew fighters.\nLens. 837 tons H.E., moderate cloud, everal explosions\nreported, including 1 very large. Ground defences insignificant;\nsome fighters.\n21st. 238 medium, light and fighter bombers attacked\nmilitary constructions Northern France. 4 medium 1 fighter\nbomber missing. 119 Thunderbolts bombed 4 Belgian railway\ncentres.\n21st/22nd. Aircraft despatched.\nCologne 24, sea-mining 58, leaflets 15. All\nreturned safely.\nRumania 21st. Escorted Liberators bombed railway\ncentres at Bucharest. 189 tons, and Turnul Severin, 35 tons in\nbad weather.\nEnemy casualties reported in the air 35:21:31.\nOurs 6 Liberators, 5 fighters missing.\nRegraded Unclassified\n376\nLOT TO BL RE-TRANSMITTED\nCOPY NO.\n\"\nSECRET\nOPTEL No. 130\nInformation received up to 10 a.m., 23rd April, 1944.\n1. NAVAL\nA motor torpedo boat was damaged during engagement\n22nd, between our light forces and some E-boats off DEVONSHIRE on 21st/\nDuring abortive air attack on ANDIO 21st our A/A\nclaimed six aircraft shot down,\nIn BLACK SEA between 15th and 20th Russian aircraft\nclaim to have sunk 9 ships and two F-lighters, On evening 20th\ne U.S. east-bound convoy was attacked by about 25 aircraft east\nof ALGIERS. Two were destroyed. A U.S. Destroyer, a U.S. Liberty\nShip and a British 8,000 ton ship sunk. Two other 7,000 ton\nships damaged but reached port. Approximately same time another\neast-bound convoy attacked northeast of BOUGIE by 15 enemy air-\ncraft. Casualties 1, 1, 3. A French ship, 4,700 tons, was sunk,\n2, MILITARY\nBURMA. Japanese attack on BISHENPUR 20th repulsed.\nOn IMPHAL-UKHRUL Road our troops have made further progress to-\nwards latter place.\n3. AIR OPERATIONS\nWESTERN FRONT. 22nd. 804 Fortresses and Liberators\nsupported by 48 squadrons fighters sent northwest GERMANY. 627\nof them bombed HAMM Goods Yards dropping 1056 tons H.E. and 302\nincendiary with results mainly good. 147 of remainder bombed\nother objectives including HAMM Town, BONN, KOBLENZ and SOEST.\nEight Fortresses, 10 Liberators missing and 7 more Liberators\nreported shot down over this country by German Intruders. Enemy,\ncasualties by fighters 3, 0, 1. Ours 1 fighter. 680 Marauders,\n::itchells and Bostons and 108 Spitfire bombers attacked military\nconstructions in Northern FRANCE. Two forces of Thunderbolt\nbombers sent to attack railway targets in FRANCE and BELGIUM.\nFull reports not yet received.\n22nd/23rd. 1124 aircraft despatched:\nDUSSELDORF\n594 (29 missing)\nBRUNSWICK\n265 (4 missing)\nLAON Goods Yards\n181 (9 missing)\nMANNHEIM\n17\nMilitary Constructions,\nN. FRANCE\n2\nBomber Support\n19\nIntruders\n22\nLeaflets\n24\nPreliminary reports: DUSSELDORF - Weather clear, markers well\ngrouped and easily seen, bombing well concentrated around them.\nBRUNSWICK - Thin cloud, otherwise good\nvisibility, bombing appeared accurate and Mosquito one hour after\nattack reported good fires. Ten German Intruders operated over\nEAST ANGLIA. One was destroyed. Spitfires shot down a JU 188\noff WICK.\nRegraded Unclassified"
}