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    "title": "Volume 763, August 16 – August 18, 1944",
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        "Henry Morgenthau, Jr. Papers",
        "Diaries of Henry Morgenthau, Jr."
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    "ocrText": "DIARY\nBook 763\nAugust 16-18, 1944\nRegraded Unclassified\n- A -\nBook Page\nAfrica, North\nSee France: Lend-Lease Agreement (future)\nArgentina\nSee Latin America\n- C -\nChina\nNelson and Hurley ask to discuss contemplated trip\nwith HMJr - 8/18/44\n763\n217\nCoast Guard\nFor future use of plane see Morgenthau, Henry, Jr.\n- D - -\nDuBois, Josiah E., Jr.\nLetter of apology to HMJr - 8/16/44\n1\nDumbarton Oaks Conference\nTreasury representative discussed by Hull and HMJr -\n8/18/44\n206\na) HMJr's note to Hull - 8/22/44:\nSee Book 764, page 231\n1) Grace Tully tells HMJr FDR has rejected\nTreasury request - 8/23/44: Book 765, page 14\n- E -\nEighth Air Force\nSee Financing, Government: War Savings Bonds\nEuropean Advisory Committee\nSee Post-War Planning: Germany\n- F -\nFinancing, Government\nHaas memorandum on \"Refinancing of the Two Treasury Notes\nMaturing September 15\" - 8/17/44\n153\nWar Savings Bonds\nEighth Air Force in Europe has superb organization\nfor purchases under Doolittle - 8/17/44\n114\na) Odegard (Peter H.) letter from London, and\nHMJr's reply - 9/9/44: See Book 771. page 69\nFrance\nFranc Notes: Valensi-Treasury correspondence concerning\nprinting of - 8/16/44\n30\nLend-Lease Agreement (future) : McCloy and HMJr discuss\narrearage on payment for civilian supplies in\nNorth Africa - 8/18/44\n214\nRegraded Unclassified\n- G -\nBook Page\nGermany\nPost-War Treatment\nSee Morgenthau, Henry. Jr.: Trip to European War Zones\n# Post-War Planning\nGlasser, Harold\nSee United Nations Relief and Rehabilitation Administration\nGold\nSee Latin America: Argentina\n- H - -\nHull, Cordell\nSee also Post-War Planning: Germany (HMJr's trip to\nEuropean War Zones)\nHull-Welles controversy on Argentina discussed by Hull\nand HMJr - 8/18/44\n763\n204\nHungary\nSee War Refugee Board\n- J -\nJabotinsky. Eri\nSee War Refugee Board\n- K -\nKohn, Hans (Professor, Smith College)\nSee War Refugee Board\n- L -\nLaGuardia, Fiorello (Mayor of New York City)\nSunday broadcast on post-war problems sent to HMJr - -\n8/16/44\n2\nLatin America\nArgentina\nFreezing of gold - State Department attitude toward\ndiscussed by 9:30 group - 8/17/44\n92\na) Schmidt-Luxford memorandum on recent\ndevelopments 8/17/44\n161\nHull-Welles difference of opinion on treatment\ndiscussed by HMJr and Hull - - 8/18/44\n204\nLend-Lease\nUnited Kingdom: Federal Reserve Bank of New York\nstatement showing dollar disbursements, week ending\nAugust 9, 1944 8/18/44\n248\nLuxembourg\nRadio address on treatment of small nations at\ninternational conferences sent to HMJr - 8/16/44\n20\nRegraded Unclassified\n- M -\nBook Page\nMann, James H.\nSee War Refugee Board\nMorgenthau, Henry, Jr.\nTrip to European War Zones (England and France):\nSee Post-War Planning - - Germany\nCoast Guard plane - future use of: Gaston memorandum -\n8/18/44\n763\n230\n- N - -\nNelson, Donald M.\nSee China\nNorth Africa\nSee France: Lend-Lease Agreement (future)\n- 0 -\nOffice of War Information\nSee Post-War Planning: Bretton Woods Monetary Conference\n- P -\nPalestine\nQuota discussed by Churchill and HMJr during HMJr's\ntrip to European war zones - 8/17/44\n106\na) For Hungarian Government offer\nsee War Refugee Board\nPost-War Planning\nBretton Woods Monetary Conference\nLuxford report on Sulsberger luncheon and programs for\nAmerican Forum of the Air, United Nations\nAssociation, etc. - 8/17/44\n116\nNewspaper editorial opinion - 8/17/44\n138\na) Luxford comment on Office of War Information\nreport: \"The Public Ignores Bretton Woods\" -\n8/18/44\n219\nGermany: HMJr's trip to European war zones discussed\nwith Treasury group - 8/17/44\n93\na) German post-war treatment reviewed with\nEisenhower\nb) Palestine quota question - discussion with\nChurchill and Eden described\n1) For Hungarian Government offer\nsee War Refugee Board\nc) Eisenhower and Churchill advocate\n\"stern treatment\"\n202\nWinant program based on Acheson Committee\n(Pasvolsky chairman) report (See Book 759, page 245)\nwill result in third war at end of 10 years\n202-203\nTeheran conference decision was dismemberment of\nGermany in 3 to 15 parts with European Advisory\nCommittee set up for future study\n1) Hull, who had never seen minutes of\nconference, amazed\n2) Hull describes his attitude toward Germany\nand Japan\n204\nRegraded Unclassified\n- U -\nBook\nPage\nUnited Nations Relief and Rehabilitation Administration\nGlasser, Harold: To represent UNRRA at conference in\nMontreal - 8/17/44\n763\n113,167\nWhite to serve as member and chairman of committee\ndetermining position with regard to foreign exchange\nof foreign governments asking assistance - 8/17/44\n169\n- W -\nWar Refugee Board\nPalestine quota discussed by Churchill and HMJr during\nHMJr's trip to European war zones - 8/17/44\n106\na) Hungarian Government offer regarding emigration\nand treatment of Jews: State Department release\nand press comment thereon - 8/17/44\n176\n1) Joint statement of British and\nU.S. Governments transmitted to certain\nAmerican diplomatic officers - 8/18/44\n252\nb) Union of Orthodox Rabbis of United States and\nVaad Hahatzala Emergency Committee-Treasury\ncorrespondence - 8/25/44: See Book 766, page 134\nJabotinsky, Eri: Kohn. Hans (Professor, Smith College)-\nTreasury correspondence concerning - 8/17/44\n174\na) Kohn note of thanks - 8/21/44: Book 764, page 121\nMann, James H.: Made Special Representative of Board\nwith designation \"Special Attache to the Embassy\"\n(Madrid) on war refugee matters - 8/18/44\n271\nWelles, Sumner\nHull-Welles controversy on Argentina discussed by\nHull and HMJr - 8/18/44\n204\nWhite, Harry D.\nSee United Nations Relief and Rehabilitation Administration\nRegraded Unclassified\n1\nLondon\naugust 16\nDear mr. Secretary,\nHowever badly May ast at times, l\nI'm sorry about this morning\nyou in high places in this world, has\nfeel that if there were this more men one like\nI want you to know how deeply\nmeaning and that those dear to me have\ncould feel surer that war a\nnot sconfired in rain.\nSincerely,\nJoe (DuBois)\n2\n25\nAugust 26, 1946.\nDear Mayer La Cuardias\nThis will achmovledge year letter of\nAugust 14, which transmitted to the Secretary\nof the Treasury a any of a breadcast which\nyou made from city Hall last tuning.\nMr. Norgenthau to out of the country as\nthe present time, tot you my be sure 1 shall\nbe glad to being your letter and its enclosure\nto Me attention as seen as he returns to Me\ndesk, and I Incov he will be most interested is\ngoing ever the full text of year address.\nI\n(Signed) H. S. Klotz\n1. 8. Klets,\nPrivate Secretary.\nRemorable 1. a. in Guardia,\nMayer of the City of New York,\nBew York, New York,\nGEF/dbs\nRegraded Unclassified\n3\nCITY OF NEW YORK\nOFFICE OF THE MAYOR\nNEW YORK 7, N.Y.\nAugust 14, 1944 Bh\nHon. \"enry Morgenthau\nSecretary of the Treasury\nWashington, D. C.\nMy dear Mr. Morgenthau:\nI am enclosing herewith copy of my Sunday broadcast\nof August 13th. Inasmuch as I have touched on a matter in\nwhich you are so closely and vitally interested I thought you\nmight like to read it.\nIf you have any comment or criticism I would\nappreciate receiving it.\nSincerely yours,\nencl.\nMayor\nRegraded Unclassified\n3- n\nFOR IMMEDIATE RELEASE\nSUNDAY, AUGUST 15, 1944\nCITY OF NEW YORK\nOFFICE OF THE MAYOR\nTEXT OF MAYOR F. H. LA GUARDIA'S SUNDAY BROADCAST TO THE PEOPLE OF\nNEW YORK FROM HIS OFFICE AT CITY HALL, AUGUST 13, 1944, BROADCAST OVER WNYC\nAT 1:00 P. M. FOLLOWS:\nPationce and Fortitudo.\nPOST WAR I want to talk today about our postwar problems. As of today, we\nPROBLEMS are not prepared for peace. It took a long time to prepare for war.\nIt will take a long timo to prepare for peace. To date, precious timo has boon\nwasted. There should not be another minuto lost. Congress will have to speed\nup. We all want the war to end at the carliost possible moment. We are all\nhopeful that it will ond in Europe before long. Yet we are not ready to meet\nthe situation at home when it does. Nothing short of a miraclo will save us from\na great deal of trouble and anxioty. It is just taking too long to get the\npostwar program sottled and tho necessary legislation enacted in order to pre-\nparo and be roady. Failure to be ready will be extromoly costly, porhaps ton\ntimos more than a constructive program, besidos the trouble, the hardship,\nthe sufforing and the anguish that will be causod. Relief is always costly\nand does not settle anything.\nThose of us who wore close to the unemployment situation know what\nrelief costs, and we know that it is not a final solution. We must provide\nwork and opportunity and security. Roliof, idlenoss and sympathy will not do.\nLot us look at the situation. Over ton million mon and womon are\nnow in the armed forces; about thirty million mon and womon aro now employed in\nwar industries, including transportation, agriculture and mining; soventy-five\nto eighty percent of our factorios, shops, plants and yards are now ongaged\nsolely in war production. The problem thon is to got the domobilizod votorans\ninto jobs, to koop war industry workors in employment and to transform war\nplants back to poaco-time production. In addition we must koop agriculture\ngoing to its maximum production. Wo know that all ton million mon in the armed\nforces will not be discharged at one time. The first impact, though, will be\nfelt for several months after domobilization starts. No must be proparod to give\nI\nInclassified\n- 2 -\n4\nthese mon jobs, to koop them in jobs and to absorb votorans in gainful employment\nafter they are discharged.\nMany mistokes have boon mado horo at home. Mistakes are bound to\nhappen in a great emergency and in such a gigantic task. Many of the mistakes\nword pardonable because of inexperienco. Somo of the mistakes were un-\npardonable because of past experience.\nTo moot this gigantic problem, everyone must do his share. The\nresponsibility may be divided into four parts:\n1. The Government.\n2. Industry and Commerce.\n3. Agriculture.\n4. Wage Earners.\nWhat should each do:\nTHE\n1. The Government: The House of Representatives should procood with-\nCOVERNMENT\nout delay to anact into legislation the romaining part of the\nBaruch rocommendations not yet written into low or contained in the Goorgo Bill.\nCongress should perfect the contract termination law and proceed at onco to\nprovide for aid and assistance in converting industry back to poacetimo\nproduction.\nIt should, insofer as is possible and practical, define its taxing\npolicy for 1945-1940. This, of course, is always subject to the act of a sub-\nsequent Congress. However, a doclaration of a tax policy, while not binding\non a subsequent Congross, would be reassuring to industry and commerco and at\nthe same timo rould have grout force and would be considered with great\nrospoct by the ner Congress.\nCongress should approve a fodoral, state, municipal public works\nprogram, with immediate appropriations made available to Foderal, State and\nlocal governments for the preparation of ongineering and architectural plans\nund specifications, and definite commitments ns to the amounts of grants to\nstate and local sub-divisions of government. Congress should puss the foderal\nhighway bill with authorization for increased appropriation. It dous not\nprovido anough as it now strnds.\nA careful study of the Servicemen's Readjustment Act of 1944 should\nbe made to obtain timoly, perfecting and clarifying amondments if they should\nbe decmed necessary. Nothing should bo left in doubt. The ruhabilitation and\neducational featuros of this law are excollent. Hero the mistokes and\nexperience of the last world war have boon helpful.\n- moro -\nRegraded I Inclassified\n5\n- 3 -\nThe roomployment provisions, of course, are necessary, but providing\nemployment agency does not creato jobs by and of itself. In this instance, CB\nin every other, it will be seen that a comprehensive plan is absolutely necessary.\nThe Voterans Roemployment Agency will be of great value if industry and commerce\nare able to give jobs. It will be useless if there are no jobs.\nProvision should be made in the guaranty of voterans loans to pormit\nthe pooling of individual loans among votorans who desire to join in an\napproved business venturo.\nThe government should now provide a guaranty of loan to industry and\nbusiness for the purpose of deforred maintenance, expansion, replacement of equip-\nment and machinery of any company or individual who has been or was solvently\nengaged in industry or business prior to or during the war.\nProvisions for displaced war workers must also be made. Wo must be\nrealistic. Wo cannot talk about the consumption of consumers goods and pur-\nchasing power and remain silent as to what is to happen to millions of war\nrorkers who will necessarily lost their jobs. The provisions in the Kilgoro\nBill were not all excessive or exaggerated. A large number of workers un-\nemployed, with barely a subsistence allowance, will only prolong the period of\nresumption of peacetime production.\nAs the Goorge Bill goos from the Sonate to the House, careful\nconsideration should be given by the members to many excellent provisions in\nthe Kilgore Bill. Out of it all should como a woll balanced, casily administored,\neffective plan for part of our post war problems. Both bills provide too much\nmachinery for administration. Any attempt to mix, to mingle, or to merge any\nadministrative duty, direct or indirect, with the logislativo branch of the\ngovernment would only create a governmental melange, not in keeping with our\nphilosophy of government, and will causo trouble. It has nevor and vill\nnever work.\n- more -\nRegraded Unclassified\n6\n- 4 -\nwhen congrossional committees want information they have the power to get it.\nFor a congressional committoo to sit with an advisory committee in the adminis-\ntration of any law is not only impracticable but dangerous. The administration\nof all provisions of law, I repoat again, should be stroomlined and docision and\nrosponsibility definitely fixed in as fow individuals as is possible. Both bills\ncontain the woakness of divided cuthority, too many committoos, very unwioldy\nand cumbersomo administrativo machinery.\nA great deal of our trouble has boun caused by dispurity of labor\nconditions in various states. This condition in not sought to be perpetuated in\nthe Goorge Bill. Every post war problem is a national problem. The displacement\nof war workers and the rehabilitation of industry is not a State problem but a\nnational problem. Unemployment allowance should be uniform. True, there might\nbo a slight difforential in the cost of living in the various sections of the\ncountry. In the main though it nocessarily must be uniform in amount, in ad-\nministration and in terms and conditions. To separate this into 48 administru-\ntions is not only costly but unscientific. It may create patronage and pup but\nit will not be as efficient as a national system. Imagino tun million workero\nshopping around for the states having the highest unemployment insurance.\nimagino an administration allowing travel expense without C complete coordinated\nnational plan of knowing just how, where and why money is spent for travel\nand expenso of families of war workers. Some may have a right to return homo,\nothers may want to go whore work is available but all of this has to be co-\nordinated and brought under the supervision and control of one administration.\nProvision for 48 state administrations of unemployment insurance may be good\npolitics. It is bad, very bud socially and economically.\nThe dolay in obtaining necessary post war logislation, the duplication\nand logislative confusion created by two bills on the same subject in the Senate,\ncach reported out by Committee, the need of one comprehensive plan, all indicato\nthe necessity of an over-all study and consideration of these problems by\nCongross. To those not familiar with parliamentary procedure, the difficulty\nmay not be apparent.\n- more -\nRegraded Unclassified\n7\n- 5 -\nUnder the present rules, with different committees considering the various parts\nof the entiro program, dolay, duplication, omission are all bound to happen. The\nliouse of Representatives has soun this in the appointment of a Special Post Far\nStudy Committee. The rockness of this Committee, though, is that it has not been\ngiven the necessary power to report definite legislation. It can only moko\nrecommendations. That moons delay, more hearings, more study, more investigations,\nmore reports. It would be very helpful if each House of Congress appointed its\nown special legislative committee on post for problems. This committoo should\nconsist of the Chairmun, ranking Majority and Minority members of the Ways and\nMonns, Appropriations, Interstate end Foreign Commerce, Agriculture, Labor end,\nif nocessary, Army and Navy Committoes, with full power to propare and report\nlogislation to their respectivo bodios. This will bring under one consideration,\nat one timo, the entiro picture and will enable proper approach and treatment of\nthe various problems, the necessary tying in of all post war activities, co-\ncrdination and cooporation, cnd eliminato a great doal of burecucracy and\norsonnel.\nThe government in Washington must bo stroomlined. The grenter number of\nT agencies should be terminated. All duplication end overlapping must be\nuliminated. Each dopartment of government should absorb the functions of the\nvarious agencios which portain to its particular field. This subject alone could\nbe discussed at length. I may do so at another time.\nIt in absolutely necessary that insofar as is prudently possible,\nwithout impairing the post war program, which will be very costly, the government\nshould ostimate ito post war exponses for a poriod of five years. In order to\navoid any misunderstanding, disappointment or irritation, a definito policy on\nlund-loase must be proclaimed now before it is too lato. We may have to give\nome cid to the unhappy invaded countries. It should be restricted to\nsuch countries. Lend-lease, though rostricted, after the tormination of\nhostilities, must be limited to goods and commodities. All of the countries vill\nhood building matorials, machinory, clothes, food and modical supplies. This all\ncan be supplied under the provisions of lend-lease with casy torms of payment or\nexchange later in commoditios. There should be no cash loans excopt for a\ncritical or emergoncy situation. I as talking about government money. Re-\nestablished governments or now governments, of course, would be pormittod to\ncloat bond issues on such turms es they are able to negotiate.\n- more - -\n8\n- 6 -\nA system of universal military training will have to be established for\n:11 boys betwoon the agos of oighteen and twenty-one, giving choice to the in-\ndividual as to when he will serve within that age period, or compulsory at\ntwonty-one. Suitable arrangements, of course, can and must be made for college\nstudents without interruption of their college or post-graduate courses. This is\nvery easy to accomplish. Alongside of this, states must strengthon their com-\npulsory oducational laws in order to take from the competitive labor market\nchildren of tender years and immaturo youth.\nOn the other end of the pool, a more uniform system of old-ago pensions\nshould be established throughout the country. No old ago pensions should be\nallowed whore the beneficiary continues employment in any competitivo field. Un-\nemployment insurance should be moro uniform throughout the country. This, of\ncourse, is only palliativo and not a curo. Let us give moro thought as to how to\nkoep people at work rather than how to koop them out of work. Labor wants work\nwith decent pay not idlonoss with reliof. We must establish security of employ-\nment to such an extent that the cost of unemployment insurance would be greatly\nreduced and the benefits to seasonal workers greatly increased.\nWe have learned that a groat doal of dostitution, which is very costly\nto local and stato governments, comos from the disability of the head of the\nfamily to work owing to illness. At this date little noed be said as to the nood\nof a hoalth insurance system throughout the country. It is past the study stago.\nSufficient information, knowledge and oven experience have boen obtained to put\nsuch a plan into oporation.\nWe have hoard too much of surpluses. Paradoxically, it has caused\nhunger in our country. It is almost unbelievable that when we had the greatest\nunemployment, we had the greatest food surplus. The same is truo as between\nintions. Somo countries had surplusos and did not know what to do with thom,\nother countries were in want. That is one of the main causes of war. It must\nbe removed. Just talking about it will not solve the problem. We must act and\nwe must be propared to go into operation to care for surplus the momont the war\nonds. Oh, for the first few months thore will be such need of food and material\nin Europe, Africa, and Asia that the laissoz-faire, the happy-go-lucky, the\nunthinking, the day-by-day business mon, the pawn-banker, will say \"Oh,\neverything is fine now, why worry?\"\n- moro -\nRegraded Unclassified\n9\n- 7 -\nI tell you that there is cause to worry. No poople within B. country from\nnow on will go hungry and no country in the world will go hungry. Our\nGovernment should provide at once a surplus commodity export corporation\noporating on a hemispheric basis in concert with like organisations of\nCentral and South America. A like government corporation should be\nestablished for the European-Afrisan territory, and the third for the Pacific-\nAsiatic area. Heretofore we have talked about surpluses but we do not really\nknow if we evor had a mal surplus of anything. A surplus is that amount\nof any given commodity over and above the needs of all the people. What\nwe have called surplus was the amount over and above the purchasing power\nof the people. Do I make myself clear? As an illustration: -- To had great\ntrouble in the past with surpluses of dairy products, milk, butter and\ncheese. I say we have never had a roal surplus of dairy products in this\ncountry. If every infant and child in the United States had sufficient\nand the proper quantity of milk every day, if every family had sufficient\nand the propor quantity of butter every day, ignoring cheese entirely, we\nwould not have had & surplus of dairy products. Therefore, to balance the\nworld's surpluses, it is necessary that a definite formula be established.\nRoughly stated it means that the daily noeds of the people of\nthe entire country should be takon 68 the normal required amount of any\ncommodity. The amount over that requirement is then declared a surplus. That\nsurplus then is taken with the surplus of the same commodity of other\ncountries in the homisphere, and placed in the pool. It is disposed of by\nsale or exchange to countries needing that particular commodity. The European\nor Asiatio countries do the same, and provide for salo or exchanges between\nthe three world surplus commodity corporations. When the commodity arrives\nin the country requiring it, it is thon distributed through the regular\nchannels of trado in accordance with the economy of that particular country.\nIt is not difficult. We have the food; we have the rew materials; 1 we have\nthe demand; and soon it will be learned that a perfect balance can be maintained.\nOf course, this would eliminate spoculation. This would eliminato monopoly.\nThis would prevent excess profits and excess suffering. By the establishment\nof the homispheric surplus pool, a market is assured to the farmors of each\n(more)\nRegraded Unclassified\n10\n- 8 -\nnation for all that they produce. No more economy of want, no more\ncurtailing production, but encouraging production. There is no originality\ninthis idoa. It has boon talked about and studied for years. Selfish\ninterests have always boon able to oppose it in this and other countries.\nNow lot us consider another kind of surplus, temporary but quite\nimportant - that is surplus war supplies. Lot us get right to the point.\nCongress is giving a great deal of attention to legislation regulating\nsale of surplus war supplies. The amount of surplus supplies will not only\nbe gigantic, but fantastic. How right hero, let us remember that the Army\nand the Havy should be praised and not oriticized for having such enormous\namounts of every kind of supplies on hand. It is their job to fight and\nwin the war. They dare not take any risk as to when and how the war will end.\nIt is their responsibility to have ammunition and weapons and food and\nmaterials and supplies of overy kind everywhere when and where it may be\nnoeded - in sufficient quantities. Therefore, the American people should know\nthat the onormous supplies which we will find after the war is the result\nof & fine and thorough job on the part of the Army and the Navy.\nMore thought and study has been givon to the disposal of war\nsurplus supplies now than had beon given before the end of tho last war, A\nsuper agency of government has been ostablished with a splendid personnel,\nwhich is intended to cover all the procurement agencies of the government\nthat will have surplus supplios on hand, Every detail has beon worked out\nas to cataloging, pricing, advertising, financing, and as I stated, Congress\nis now considering definite logislation.\nI make this prediction -- that if the selling agency is perfect,\nthat if the laws enacted by Congross provide for the efficient and speedy\ndisposition by sale of all war surplus material, that within ninety days\nafter the same will go into operation, the Congress will hastily repeal its\nown logislation and stop the salo of 99 porcent of the surplus supplies. Sounds\nstrange, doesn't 16? Woll, it is a fact, Just look. Are wo not bending every\noffort to get industry baok to peacetime production? Do we not want to employ\nevery man that it is absolutely possible! Well then, if T/O want to do that,\ndo you not 800 how the sale of the surplus supplies through the regular\nchannels of trade will retard poacetime production?\n(moro)\nRegraded Inclassified\n11\n- 9 -\nYes, there are same articles on the list which will be helpful in restoring\npeacetime production; tools and dies, and machinery, may be needed at onoo,\nbut no machine should be sold unless it is nooded to restore peacetime\nproduction and not if another machine could be mado in the time that is\nrequired. Somo raw material, such as copper and lumbor, and other matorials,\nshould be sold, but nnly so much 0.8 will got peacetime production going up\nto the time that same matorial can bo produced. If all the resorvo aluminum\non hand were sold as surplus supplies now, 1t would close down the production\nof aluminum for a long time. That in turn will cause the unemployment of\nthousands of workers. Take for instance, planes and motors for airplanes.\nWhy thoro will be an enormous quantity on hand. If all of the surplus were to\nbe sold here and abroad, I predict that there would not bo an airplane motor\nconstructed in our country in five years. That would cause unomployment to\n*\nhundrods of thousands of workers. Airplanes that may be used for commorcial\npurposes, should be loaned to commercial airlines as replacements for present\nworn equipment on condition that an order for a not plane with now motors is\nplaced for each plano and motor loaned which will be returned on dolivery of\nthe new plane and now motor. The same in true in trucks and cars, in paint,\nand bolts and nuts, and in the thousands and tons of thousands of different\narticles and goods that the government will have on hand,\nThe Government, of course, should use materials and goods for its own\nestablishments. It should givo to state and municipal government replacements\nof matorials und supplies that it my need, but only on condition that the\nstato or mmicipality authorize the appropriation for the succeeding year of its\nnormal requirements for such matorial and supplies. There is a great need now\nof blankets and shoets and medical supplios in our hospitals. But how about\nthe mills, how about raw wool and cotton? If all the shoes and clothes\nthat the Government will have on hand are to be sold through regular channols\nof trade, it sure will rotard resumption of loather and textile production\nin this and other countries.\nSomeone will ask, \"Tell, isn't it wasteful not to soll all of those\n-\nsurplus supplies?\"\n(moro)\n- 10 -\n12\nThe answer is \"Yes,\" of course it is wasteful. \"ar is wasteful and\ndestructive and this enormous amount of surplus supply is just part of the\nwaste and destruction of war. So lot us not fool ourselves. I have told\ncommittees of Congress just what I nm telling you now. To must be\nroalistic and practical. It is less costly to pay wages to produce now\ngoods than pay insurance for unomployment.\nINDUSTRY AND 2. INDUSTRY AND COMMERCE: Everybody is talking about free\nCOMMERCE\nenterprise today. When I say everybody, it seems from the\nmember of a Local of organized labor, to the President of the United States.\nIt seems to be the will of the majority of the American people. That being\nso, thon we must face this big problem honestly, frankly and realistically.\nFree enterprise means business for profit. If that is the will of the\npeople, then business and industry must be given a chance to operate. Given\ngood wagos and wholesome working conditions, an opportunity of profit\ncommonsurate with the capital and risk involved must be made possible.\nTalking about profits, taxes tantamount to almost complete requisition and\nfree enterprise at one and the same time, simply doos not mix. Hog-tying\nlogislation likewise interferes with free enterprise and the profit system\nand the oreation of permanent employment under this system. Now mark you,\nI am not giving my views. I em stating what must be realistically faood if\nthose who talk about free entorprise want to bring it about successfully. In\nthe modern, scientific, industrial age in which we are living, we must not be\nfrightened at big undertakings. Many of the consumers' goods and desirable\ngoods cannot be produced today unless they are produced in maximum quantities\nand the manufacturer is permitted to avail himsolf of every possible economy\nin the purchase and processing of raw materials, the manufacture and\ndistribution of the ultimate goods.\nIndustry and business, as I said before, has a responsibility.\nGranted that it should know exactly how it stands in legislation and\ninsofar as is possible taxation, it must reconoile itsolf to fair and reasonable\nprofits, to now conditions pertaining to labor, to close ocoporation with its\n1\n(more)\nRegraded Unclassified\n13\n- 11 -\nemployees and the recognition that the employees o ome to have a vested interest\nin something that they have contributed in building and creating. The time may\nnot be distant that a certain percentage of profits beyond a fair and\nreasonable return may be shared by management and labor. Security of employ-\nment is necessary and in the long run coonomical to the employer himself.\nTherefore, production should be systemtizod in such way as to avoid seasonal\nwork. Thore is no reyson why the automobilo or the petticoat manufacturer\nshould produce only in a certain season of the year. Given its model or\nstyle, production may woll be spread during the twelve months of the year.\nBusiness and industry should now bo ready with its post war plans for\ndeforred maintenanco, expansion, replacements and onlargement or new enter-\nprise. There is plenty of money available and as I stated, the government may\nprovide somo sort of partial loan guaranty. There is nothing more discouraging,\nand I am sorry to say I have hoard many important, yes, oven big bankers and\nbusiness men, toll me, \"Oh, wait, lot's win the war first.\" This typo of mind\nwill not fit in the post war period. This is the pawnbrokers' and pusheart\npeddlers' montality. All the shenanigans and questionable promotional schemes\nwhich flourished in the early days of railroads and right down into the late\ntwenties, must be forgotton. If business or industry sells bonds, the inves-\ntors must know that they aro absolutely good with sufficient property back of\nthem. In exchange, the investor takes a lower rate of interest. Watered\nstock and over-capitmlisation must likewise be avoided, the stookholder must be\nassured that he is in a business and not a lottery. Moro labor and owner\nropresentation will have to be given on the directory boards. Existing\nrestraint of trado and anti-trust laws must bo brought up to date to meet the\ntoohnology of mass production, changed labor conditions and magnitudo of modern\nindustry. The Department of Commerce must be vested with the authority and\npower to protect honest business and industry. An opportunity should be given\nto business and industry to apply for approval of contracts, agreements or any\nundertaking before same is put into operation, in order to ascertain if it\nconflicts with any existing restraining or trust law. When industry and\nbusiness want to do the right thing, they should not be placed in jeopardy\nor tempted to violate the law when it is not their intention to do 50,\n( more )\nRegraded Unclassified\n- 12 -\n14\nI want to state again now, that I am simply stating what should be done if a\nsystem of free enterprise 1e to be the policy of our nation.\nAGRICUIT URE 3. Agriculture: With the exception of perhaps the last few years\nin this country, agriculture has never had a chance in this or any other coun-\ntry of the world. For centuries, countries of the older world thrived on the\nexploitation of the peasants. In this country, industry profited, in the past,\nby the misory of the farmers. That day should be gone and gone forever.\nUnless we are very careful, we may again depross agriculture to the depths\nof bankruptcy and poverty as was done after the last world war in this\ncountry. I wonder how many realize that the job of a shirt-maker in a shop\nin Nov York, or a mechanic in a plant in Detroit may depend upon the wheat\ncrop in the Argentine or in Australia, to say nothing of the economic\ncondition of the farmers of this country.\nOur agriculturo oconomy must bo based on a policy of plenty.\nEverything that the soil can produce must be encouraged. Parity, not parity-\nplus, but real parity prices must be assured to the farmor, and what is more,\nthat ho will find a market for his crops. This is only possible with the\nworld surplus pool I talked about a moment ago, The American farmor is ontitled\nto fair and just compensation for his labor, the labor of his family, and for\nfair, just and reasonable returns for his investment. That is all he wants,\nthat is all he has over asked. If he gets that, he is presporous. If the\nAmorican farmer is prosperous, he buys clothes and furniture and household\ngoods, machinery and all sorts of things that we make in the city. That means\nemployment in the cities - wages - and in turn a good market for his products.\nNow when you put this circle in reverse, it is just too bad, The farmer is\nbroke and ho cannot buy, and because he cannot buy, the fellow in the city\ndoos not have & job and ho cannot buy sufficient food. It is just as oasy to\nkeep the gear forward as to lot it slip into revorso.\nIf the nations of the world aro really desirous of maintaining\npoase, nothing is more important than that all of the people of the world\nshould have enough to eat. God Almighty has placed sufficient food on earoh\nfor all the people. It has not all boon equally distributed; but the\nbalance is there. While one\n(more)\n15\n-13-\ncountry may produco ono crop in surplus quantitios, it doos not have another\ncommodity it nooda and which another country produces. To think of pooplo\nstarving with a surplus of food of any kind is not only stupid,but sinful.\nLABOR\n4, LABOR: Wo now como to the wago carnors. Labor has an\nopportunity to mako a groat contribution to our post-war adjustment. It has\nthe groatost opportunity in the ontiro history of industry. Labor has gainod\na position, its rights have boon recognized. This brings with it rusponsibility.\nGranted a policy of 4 decont living wago, socurity and provision against\nunomployment, it necessarily follows that labor must produce sufficient to\ncreato such wagos and working conditions. \"Tagos must nocossarily bo\nmaintained by production. Slow-down, limitod production, idlo standbys, aro\ncostly to labor and to industry.\nSponking vory frankly, in tho poriod of adjustment\nfollowing tho war, with the huge numbor of dischargod var workors and\ndomobilizod soldiors, full and comploto cooporation will be necessary.\nUnloss amplo, oquitable distribution of work is provided betwoon the\ndischarged war workors and the domobilized votorans, thoro is groat dangor\nof irritation, friction and sorious troublo butwoon thoso two groups.\nThore aro somo thirty million mon and womon, as I anid boforo, now employed\nin war industrios. Lot us assumo that there will bo about ton million who\nwill not be required in war industry and ton million who oventually will bo\ndomobilized from tho armod forcos. Horo wo have a pool of twonty million mon\nand womon for whom work must be provided. As I see it, in all governmental\npost-war public improvoment, the omployment should bo distributed on a\nfifty-fifty basis botwoon domobilized votorans and unomployed war workors.\nThe samo ratio of ono-half votorans and ono-hnlf war workors should bo followod\nns closoly as conditions will pormit in all postwar now industry, and in\ncontinuing industry and business insofar n.a. is possiblo. Womon who have\nhomos and are not solf-supporting, as woll as ovortimo and dual employment\nwill all have to givo way in ordor to provido a groator sprond of omployment.\nOrganized labor should be tho ono to prosent this plan and to 500 it onforcod.\nThat in and of itsolf is sufficient to avoid the dangor of friction botwoon\nvotorans and organized lubor.\n- moro-\n16\n-14-\nIn ordor to mintain the purchasing power nocossary to provide\npermanent employmont, it is essential that production incroaso. I report,\nthe wholo situation dopends upon the wago carner producing. Evorything should\nbe based on that. The groator the production, the groator the stability of\nemployment. The groator the production, tho bottor tho wagos.\nI have folt for a long timo that a fixed, fair and just annual pay\nwith stoady work is buttor than a fictitious hourly rato with little or no\nwork. I have always folt that full-timo jobs for all is bottor than jobs for\nsome with ovortimo. I am quito aware that tho old-lino labor loador disagroos\nwith that. However, this is something that all trados should consider An\nennual pay with stuady work will bring moro return to the individual and his\nFamily than an hourly rate, uncertain, indofinito and sonsonal. I have hoard\nfrom both employers and union loadors that it is impossible to fix an annual\npay for scasonal work. That is not 50, It is quito possible to provide greater\nincomo to tho workor on an annual basis and yot roduce tho cost of production to\nthe omployor. This is something which should recoivo the prompt attontion of\nlabor.\nLaber should sou to it that the standards of wagos aro moro\n\\miform throughout the country. The Mago and Hour Law has holped considorably.\nThat is not anough. Working conditions, rulvs imposed by labor, if good in\nono soction of the country should bo good in all soctions of the country. Ofton\nit is not wages, but working conditions that drivo an industry out of ono\nsoction into another soction of the country. That is not good for industry and\nin the long run it is not good for labor. Fair employors who want to do tho\nright thing for labor, who pay good wages, who rocognizo the rights of labor,\nshould be protected by labor itsolf against unfair compotition caused by\ninforior working conditions in other parts of the country.\nJurisdictional strikos must bo avoided. Suroly labor can\nprovido the gonius and the good will to provont a stoppago of work ofton\ninvolving hundrods of innocont workors on a job because of somo jurisdictional\ndisputo. The employer or tho contractor is holpless. Government modiation\nor conciliation agencios aro holploss.\nmoro -\nInclassified\n17\n-15-\nÀ groat doal of thought should be given to this. The art of construction, im-\nprovoment in machinory, plastics and now matorials will como into use rapidly\nafter the war. Those aro often tho causes of jurisdictional disputus as to\nwho will do tho job. This is labor's problem. Tho employer, the contractor,\nis not concorned. The cost is the samo to him. Thoroforo, it is labor's\nrosponsibility to provide tho machinory for tho adjustments of such disputos\nwithin its own rank without the interruption, the dolay, or losses to the\ncontractor or omployer and to labor itsolf. I know that poople unfamiliar\nwith labor conditions will boliove that a suggostion of this kind is wholly\nunnocossary, but thoso who have oxporionco know how costly a jurisdictional\nstriko is to both labor and employor. Assurance of the olimination of this\novil should be comploto.\nLabor organizations have sought honorably to maintain tho torms\nand conditions of agroomonts. Recontly a bad practiso has boon crooping in of\nmass \"sicknoss\" and stoppago of work, which of courso is nothing but an\nunlawful striko. In such instances, tho labor organization concorned should\nassumo tho rosponsibility of filling the vacant ranks in ordor to continuo\nsorvico and production in accordanco with tho torms of tho agrooment that\nlabor itsolf has signed and plodgod to maintain.\nLabor can bo most holpful in maintaining standards of living as\nwoll as in the social woll boing of tho poople of this country. It can also\nsorvo vory helpfully in ostablishing rolations with lubor of other countries\nin aiding to ostablish propor standards of living, and tho and of systoms of\nstarvation wagos dotrimontal to countrios whore docont standards exist.\nLabor must also police its own ranks and drivo from within its midst crooked\nlondors and anyono who would rackotoor or who would botray the causo of labor.\nAnd, finally, labor must not only opon its doors but its books to the roturning\nvotorans without oxcossivo initiation or admission duos, In faot, it would be\nmart to givo memborship to mon and womon in labor organizations on tho prosenta-\ntion of an honorable discharge. We must not forgot thousands of boys have boon\ninstructed and trainod in skillod trados. The Soaboos of the Navy, the Engineor\nCorps of the Army, the Signal Corps, the Air Corps, yes and tanks and all the\nmechanized branchos of tho armed foroos, have instructed and trained thousands\nand thousands in skillod trados.\nmoro\nRegraded Unclassified\n18\n-16-\nThuso boys must have a chanco to work. Those boys are ontitled to a job.\nI strongly adviso labor to taku thoso votorans into thoir organizations and\nto adopt tho system of sharing the work - ono workor and ono votoran for every\ntwo now jobs available.\nIn conclusion I say that I know a groat doal of all this\nsounds visionary, but I can assuro you it is not only necessary but practical.\nTo slip up on any ono of the various factors nocossary for a postwar prospor-\nous, poacoful world is courting disastor. I hato to say this, but unloss wo\naro suro that the economy of our own country will bo well-balancod, that\nthore will be work for all and social security, wo are in for vory serious\ntroublo. Is it not bottor to plan ahoad and to doliboratoly proparo for\nthe situation, constructivoly and in an ordorly mannor? If wo fail, it will\nba disordorly and troublosomo. It will load to sorious conditions, ovon\nmoro sorious than WO daro to contomplato. And it will bo so much loss\ncostly to arrange our postwar national system intolligontly than to be caught\nunproparod, to bo mot with troublo, and costly palliativos and mko-shift\nsolutions.\nWill tho postwar poriod bo costly? Yos, bocause it is part\nof tho war and it is just impossible to snap back into poaco and normal ponco-\ntimo conditions in ono instant. With provisions alroady mado by Congross\nor now under considoration, tho fiscal yoar following the ond of tho war will\nroquiro about 70% of the last war fiscal your. Tho accond yoar porhaps 50%\nof tho averago yourly cost of the war. Tho third your 25% and from that point\ntaporing off. This, of courso, assumos a completo, woll coordinated postwar\nprogram.\nSomo will say, \"But somo of tho suggostions will bo costly.\"\n110, not at all. Social sccurity will not bo costly if our oconomy is based\non & hugo production and pooplo are employed. Thoro is one complaint that tho\nplan for disposing of surplus food and othor natural resources will incroase\nthe cost of living. No, not at all, Much choapor than providing roliof for\nthe unemployed, much cheapor than subsidizing roducod production or killing of\nlivostock. Much cheapor whon it will bring into the country goods and\ncommodition that wo cannot grow or produce,\nmoro\nRegraded Inclassified\n19\n-17-\nIt will be pointod out that not disposing for cash surplus war matorials\nwill ontail groat loss. Not at all, whom you considor the loss in omploy=\nmont and production awaiting tho consumption and uso of the surplus war\nmatorial. Somo employors will any that the annual pay will incroase the\ncost of production, and labor londors will say that it in not practionl\nand that the workurs will got loss. Both aro wrong. It can be mathomaticully\ndomonstrated that it will incroaso the pay of the workor, roduco the cost\nof production.\nI fool that wo are tno most fortunato pooplo in the wholo world.\nOur task is 80 much oasior than thu postwar task of Groat Britain, Franco\nor China. To cannot ovon compare the 0080 of our postwar task with that\nof tho invadod countries or of Gormany and Japan by tho timo TO aro through\nwith thom. To start with, wo havo the roscurcos. Our country has not and\nin all likolihood will not suffor any dovistation. Would it thoroforo not\nbe an unpardonable failuro and a blomish on our gonoration if wo fumblo at\nthis timo?\nTho disastrous offoct, tho failuro of a plan to provido for\na sound oconomic postwar socioty in our country, will bring havoo and ruin\nto us in this day and maleo it extromoly difficult for the next and the\ngonoration aftor that. The problems that wo must considor and solvo aro\nnot political. Our problems aro oconomic and social. Wo cannot dolay. To\nmust work out, not a domocratic boonomy or a ropublican oconomy; it must\nnot bo toutonio or slavic or 1ntin - WO must Jvolvo a puroly Amorican\noconomy to moot our noods, our habits, our customs and our system of govorn-\nmont. IL will roquiro gonorosity in politics, particularly in this yoar)\nit will roquiro goodwill on the part of all mon. It will roquiro unsolfish-\nnoss to tho groatost dogroo on the part of all the groups: capital, labor,\nsocial and politionl. It will requiro unsolfish, patriotic teamwork. It will\nroquire courago, the liko of which no statosman in the ontiro history of\nour country has boon callod upon to display. It can bo dono - it should be\ndono. With God's holp, wo will do it.\nRegraded Unclassified\n20\n25\nAugust 16, 1944.\nMy dear Mr. Minister:\nYour letter of August 14, which us-\nclosed a copy of a address you mde over\nthe redio recently, has been received here\nduring the Secretary's absemen from the\ncountry. I shall be very glad to bring your\nletter and its enclosure to Mr. Morgenthan's\nattention as seen as he returns to the\neffice, and neamwhile, I know he would wish\n- to thank you for your courtesy in sending\nhim a copy of the speech.\nSincerely years,\n(Signed) H. S. Klotz\n: si Reta,\nPrivate Secretary.\nNemerable Hagues Le Callais,\nMinister of Lunembourg to the\nUnited States,\nLegation m Grant-Dushi\nDo Laneabourg,\nVachdagton, Do c.\nGEF/dbs\nRegraded Unclassified\nMr. Whit?1\nLEGATION DU GRAND-DUCHÉ\nDE LUXEMBOURG\nWASHINGTON, D.C.\nAugust 14,1944\nMy dear Mr. Secretary,\nI have the honor to enclose\nherewith the text of a radio address I made last\nweek. The subject is the treatment of small nations\nat International Conferences.\nWith my very best wishes that\nCongress will pass the Fund and Bank agreements,\nI am, my dear Mr. Secretary,\nYours sincerely,\nThe Honorable\nHenry Morgenthau, Jr.\nSecretary of the Treasury\nWashington, D.C.\nRegraded Unclassified\n22\nBROADCAST BY THE HONORABLE HUGUES LE GALLAIS, MINISTER\nOF LUXEMBOURG TO THE UNITED STATES.\nSTATION WWDC, WASHINGTON, 9:15 p.m.\nAUGUST 8,1944\nTreatment of Small Nations at\nInternational Conferences.\nMr. Baton:\nI have the pleasure to introduce the Honorable\nHugues Le Gallais, Minister of Luxembourg to the\nUnited States. Mr. Le Gallais is the representative\nin Washington of one of the smallest of the European\nNations, with a population of three hundred thousand\ninhabitants and an area covering one thousand square\nmiles. The history of the Grand Duchy of Luxembourg\ngoes back over a thousand years, and although the\ncountry was occupied many times by different nations,\nthe people of Luxembourg have retained a proud and in-\ndependent spirit. During the present war they have\ncourageously stood up against the German invader and\nthey were the first of the occupied countries to declare\na general strike. The lot of the Luxembourg people has\nbeen exceedingly hard because the Nazis have forced\ntheir young men to don the hated German uniform and to\nfight against the liberators of their country. I can\nimagine no greater tragedy for parents than to lose\ntheir children under such conditions of uncivilized\nwarfare.\nMr. Le Gallais has had the good fortune to be\nappointed the representative of his country at the\nRegraded Unclassified\n23\n-2-\nthree International Conferences which have taken place since\nabout one year; the United Nations Agriculture and Food Con-\nference held at Hot Springs, Virginia, the United Nations\nRelief and Rehabilitation Administration Conference hold at\nAtlantic City, and the United Nations Monetary and Financial\nConference held at Bretton Woods, New Hampshire.\nMr. Minister, may I now ask you to give us some of your\npersonal impressions about these conferences.\nMr. Le Gallais:\nwith pleasure, Mr. Eaton. I will first of all tell you\nwhat were my views at the end of the Conference on Food and\nAgriculture, by reading a press statement I made in June of\nlast year:\n\"Upon leaving Washington for Hot Springs, I was thinkin\nof a conversation between the Honorable Cordell Hull, Secre-\ntary of State, and Mr. Joseph Bech, Minister of Foreign Af-\nfairs of Luxembourg, at which I was present. Mr. Hull said\nthat when he went to the first Pan-American Conference at\nMontevideo, he acted on the principle that all Nations there\nrepresented were to be considered as equals, and he added that\nthis principle had been maintained at subsequent conferences.\nLuxembourg, concluded Mr. Hull, would be given the same\ntreatment here.\nThese were very considerate words on the part of the\nSecretary of State, and while on my way to the Conference,\nI was wondering how things would turn out in practice.\nWell, amazing as it may seem, the representatives of\nsmall Luxembourg really did get the feeling that the con-\nRegraded Unclassified\n24\n-3-\nference was being run on this principle of equality among the\nNations represented. In no instance was any attempt made to pre-\nvent a Delegation from voicing its opinion. On the contrary, the\nChairman of the Conference and the Chairman of all the Sections\nand Committees took great care to insure that each speaker had\nsufficient time to explain his point of view. In the same spirit,\nthe General Secretariat, which incidentally deserves high praise\nfor its untiring efforts to satisfy all concerned and for the ex-\ncellent results obtained, endeavored to arrange, and succeeded in\nhaving at least one member of most of the Delegations act in one\nor another official capacity.\nIn conclusion, I would like to say that after having seen\nthe principle of equality among Nations ennunciated by Mr. Cordell\nHull so effectively put into practice at this Conference on Food\nand Agriculture, it does not seem too optimistic to entertain very\nhigh hopes that the people of the world are entering into a better\nphase in the realm of international relations.\"\nWhen I returned to Washington, my friends who had heard\nabout this statement said: That is all very well, but you should\nconsider that this was a Conference concerning long range problems\nand not involving questions of immediate vital interest to the\nNations there represented.\" They concluded: \"Let's wait and see\nwhat happens at the next conference.\"\nSomehow I was not convinced by this argument, but nothing\nfurther could be said at that time.\nr. Eaton:\nWell, Mr. Minister, you have made me quite curious as to\nwhat your experiences have been at subsequent conferences and\nespecially at the last one at Bretton Woods, because certainly,\nRegraded Unclassified\n25\n-4-\nwhen it comes to money one cannot say any longer that no vital\ninterests are involved.\nMr. Le Gallais: The reply is very simple, Mr. Eaton; the United Nations\nRelief and Rehabilitation Administration Conference held at the\nend of last year, and the United Nations onetary and Financial\nConference which ended about two weeks ago, were both run on the\nsame lines as at Hot Springs. Every Delegation was given ample.\nopportunity to express its views; most of the Chiefs of Dele-\ngations had to act in one or another official capacity and care\nwas exercised to see to it that geographical factors were taken\ninto consideration. The principle of equality among sovereign\nNations was fully maintained and a real spirit of cooperation\nwas always present. This is & remarkable achievement when you\nthink that the representatives of forty-five Nations were dis-\ncussing immediate post-war relief, & problem of tremendous 1m-\nportance for the welfare of their fellow countrymen, and examin-\ning financial matters which would have a great bearing upon the\nfuture prosperity of their countries.\nMr.Eaton:\nQuite right. And all the more so when you consider that\nthese countries representing all the parts of the world must have\nquite different self-interests. Can you give us an example of\nthis, Mr. Minister?\nMr. Le Gallais: Why, of course. Most of the European countries are interested\nfirst of all in reconstruction, whereas the countries of Central\nand South America for instance, are concerned with the develop-\nment of the natural resources whitin their boundaries. Further-\nmore, a certain number of European countries have large reserves\nof gold and gold convertible exchange, and their delegates at\nRegraded unclassified\n26\n-5-\nBretton Woods could have said: \"We don't need this bank; we\nwill finance by ourselves our reconstruction plans.\" However,\nthese representatives realized that such a too self-interested\nspirit would lead their countries nowhere because if all the\nrich nations reasoned alike there would be no international\nbank and there would not be sufficient funds available to help\npromote production in the undeveloped countries and thus the\npredominantly industrial nations would find no customers to\npurchase their manufactured goods. In the same way the repre-\nsentatives of certain Latin-American Republics might have said:\n\"We have gold and dollars, we don't need the bank, we will fi-\nnance with our own means the development of the natural resources\nof our countries.\" But these Delegates wisely realized that this\nwould be a short-sighted policy and that by helping to create\nthe fund and the bank, they were promoting a regular flow of\ninternational trade and were enabling some of the occupied\ncountries to reconstruct their ruined national economy, thus\nallowing them to purchase more goods from abroad. As Dr. H.\nK'ung, the Minister of Finance of China, most appropriately said:\n\"The Bretton Woods Conference was held in a spirit of give and\ntake.\"\nMr. Eaton, I started this broadcast by refering to the\nprinciple of equality among Nations on which the Secretary of\nState, Mr. Cordell Hull, acted at the first Pan-American Con-\nference at Montevideo, and I believe it is proper at this time\nto say that this principle has been respected by other Depart-\nments of the Government of the United States of America.\nRegraded Unclassified\n27\n-6-\nNamely at Hot Springs by Judge Marvin Jones, President of the\nConference, by Mr. Paul Appleby, then Under Secretary of Agri-\nculture and by Mr. William C. Clayton, then Assistant Secretary\nof Commerce; at Bretton Woods, by Mr. Henry Morgenthau, Jr.,\nSecretary of the Treasury and President of the Conference, by\nhis close Assistants, Dr. Harry White and Mr. E. Bernstein, as\nwell as by Judge Fred Vinson, Director of the Office of Economic\nStabilization; at the Atlantic City Conference, the president\nwas Mr. Dean Acheson, Assistant Secretary of State who worked\nwonders, and the Director General of the United Nations Relief\nand Rehabilitation Administration, Governor Herbert Lehman, also\nproved to be a great friend of the small Nations.\nAt the three Conferences, the Secretary General was Dr.\nWarren Kelchner of the State Department to whom all Delegates\nowe a great debt of gratitude for his untiring efforts to satisfy\nall concerned.\nIn conclusion, I would like to say that I believe strongly\nthat the United and Associated Nations are started on the right\ntrack towards world collaboration. They may have to face setbacks,\nbut that should not prevent them from clinging with grim determ-\nination to the common purpose they have set for themselves, and\nthis, with a clear vision that side tracks will lead nowhere and\nthat there is no way back. The United and Associated Nations,\nlarge and small, have now successfully withstood the test of\nthree International Conferences. May God grant them the strength\nto carry on in the same spirit of cooperation and good will:\none for all and all for one.\nRegraded Unclassified\n28\n-7-\nMr. Eaton:\nThank you, Mr. Minister. You have just heard Mr. Hugues\nLe Gallais, Minister of Luxembourg to the United States, who\nhas spoken to you from Washington on the sub ject: \"Treatment\nof Small Nations at International Conferences.\"\nRegraded Unclassified\nTreasury Department\n29\nDivision of Monetary Research\nDate 8/18/44 19\nTo:\nMrs. McHugh\nThis letter was sent to Mr. Glasser\nby a covering letter from Mr. Valensi\ndated 8/17. A reply is being prepared\nby Mr. Glasser.\nRe letter of Aug. 2 referred to:\nMr. Bell sent us a photostat on\nAug. 9, and we prepared the reply.\njm\nMR. WHITE\nBranch 2058 - Room 2141\n30\n1800 MASSACHUSETTS AVE. nv,\nGOUVERNEMENT PROVISOIRE\nxxxxxxxxxxxxx XXXXXXXXXXXX\nAUGUST 16, 1944.\nATTACHE FINANCIER\nNF 198\nCV/MJ\nDEAR MR. SECRETARY\nI WISH TO ACKNOWLEDGE RECEIPT of AND THANK YOU FOR THE LETTER\nDATED AUGUST 12 FROM MR. D. ONL, UNDER-BEGRETARY or THE TREASURY,\nINFORMING ME OF YOUR AGREEMENT REGARDING OUR NEV - FOR FRAME NOTES.\nFURTHER TO w LETTER DATED AURUST 2, 1944, I RECEIVED INSTRUC-\nTIONS FROM THE COMMISSIONER FOR FINANCE IN ALBIERO REQUESTING THAT THIS\nORDER BE INCREASED. THIS INCREASE WOULD CALL FOR - ADDITIONAL THREE\nHUNDRED MILLION 100-FRANS NOTED, THIS SAINSING THE TOTAL AMOUNT FOR THE\nORDER TO THE FOLLOWING FIGUREST\n200 MILLION 500-FRAMS NOTES - VALUE se BILLION PRAMES\n⑉ MILLION 100-FRAME NOTES - VALUE se BILLION FRANCE\nTOTAL: 980 MILLION NOTES, FOR A VALUE or 130 BILLION FRANCO.\nTHESE FIGURES SHOULD THEREFORE BE SUBSTITUTED FOR THOSE GIVEN IN MY\nLETTER DATED AUGUST 2, 1944.\nI VOULD APPRECIATE RECEIVING CONFIRMATION or YOUR AGREEMENT 19 THE\nORDER THUS AMENDED, WHICH WOULD BE CARRIED our AND PAID FOR UNDER THE -\nDITIONS STATED IN THE LETTERS DATED MAY 17, 1944, - COMPIRMED BY MY\nLETTER OF AUGUST 2./-\nHH\nCurraleur FAITHPULLY VOURS,\nto\nCHRISTIAN VALENOI\nPERMITES ATTACHE\nHENRY M., Eag.,\nGEORETARY OF THE TREASURY,\nTREASURY DEPARTMENT,\nWASHINGTON, D.C.\nRegraded Unclassified\n31\n1800 MASSACHUSETTS AVE, NW,\nGOUVERNEMENT PROVISOIRE\nX\nLE 16 AOUT 1944.\nATTACHE FINANCIER\nAF\nCV/MJ\nMONSIEUR LE SECRETAIRE MI TRESOR,\nJ'M L'HONNEUR D'ACCUSER RECEPTION ET DE vous REMERCIER DE LA LETTRE\nBU 12 AOUT DE M, DANIEL SELL, BOUS-BECRETAIRE AU TREBOR, ACCEPTANT NOTRE\nNOUVELLE COMMANDE DE BILLETS FRANCO,\nDEPUTE MA LETTRE DU 2 MUT, LE COMMISSARIAT AUX FINANCES MA FAIT\nPARVENIA D'ALGER DES INSTRUCTIONS EN VUE D'UNE EXTENSION DE CETTE COMMANDE.\nCETTE EXTENSION PORTERAIT SUR 200 MILLIONS SUPPLEMENTAIRES DE BILLETS DE\n160 FRANCE, ET PORTERAIT AINSI LE MONTANT TOTAL K LA COMMANDE AUX CHIFFREE\nQUIVANTS!\nsee MILLIONS DE BILLETS DE SOOP VALANT se MILLIARDS DE FRANCS\n....MI MILLIONS DE BILLETS or 1007 VALANT_RE MILLIARDS BE FRANCS\nTOTAL 980 MILLIONS DE BILLETS\nVALANT 130 HILLIARDS DE FRANCE\nCES CHIPPRES DEVRAIENT BONG ETAC SUBSTITUKE A atux FIGURANT DANG MA\nLETTRE BU 2 AOUT.\n& vous BERAIS TREE ONLIGE DE SIDI YOULDIR NC COMPERMER VOTRE ACCORD\nPOUR CETTE MODIFICATION DANS LA COMMANDE, DONT LES CONDITIONS D'EXECUTION\nDENEURERATION CELLES PREVUES PAR L'ECHANGE BE LETTRES ou 27 MAI ET CONFIR-\nNEED PAR NA LETTRE DU 2 MUT.\nVEGILLEZ ABREER, PRONSIEUR LE SECRETAIRE w TAESON, LES ASSURANCES se\nMA MAUTE CONSIDERATION./.\nUn balents\nCHRISTIAN VALENGI\nATTACHE FINANCIER\nMAITRE DES REQUETED w CONSEIL D'ETAT\nMONSILEUR HDRY MORGENTHM, me,\nDEGRETAIRE AU THESER,\nWASHINGTON, D.C.\n31-A\nLetters\n&\nAUG 12 1944\nDear Mr. Valonsi:\nIn respect to your letter of August 2, 1944 to Secretary\nMorgenthau requesting the printing of 600 million individual\nframe notes of a total value of 100 billion france, I vish to\ninform you that we are prepared to proceed with this order as\nwoom as the first order for 305 million individual frass\nnotes of a total value of 300 billion france to completed.\nWe coasur in your request that this order be carried out\nunder the terms and conditions set forth in my letter to M.\nMendes-France, Commissioner for Vinance, dated May n. 1944,\nand the letter to Secretary Margenthau from M. Hendes-France,\ndated May 27. 1944.\nVery truly yours.\n(SIGNED) D. W.BELL\nUnder Secretary of the Treasury.\nMr. Christian Valenci,\nFinancial Attache,\nFrench Delegation,\n1600 Massachusetts Avenue, Northwest,\nWashington 6, D. e.\nWMF:lse 8-11-44\nRegraded Unclassified\n31-B\nC\n0\nP\nGouvernement Provisoire\nY\nAugust 2, 1944\nHenry Morgenthau, Jr., Esq.,\nSecretary of the Treasury,\nWashington, D. C.\nDear Mr. Secretary:\nIn reference to your letter to Mr. Mendes-France, French\nCommissioner for Finance, dated May 27, and the letter of Mr. Mendes-\nFrance to you also dated May 27, I wish to advise you that the pro-\nvisional Government of the French Republic wishes to complete the\nissue of franc notes which is now being printed by your Department\nby a new order.\nThis order, which will be carried out and paid for under the\nconditions stated in the letters of May 27, will involve the following\namounts:\n100 million notes of 500 frs. of a value of 50 billion france\n500 million notes of 100 frs. of a value of 50 billion francs\nor a total of:\n600 million notes of a value of 100 billion france\nI would much appreciate your kindly giving me confirmation of\nyour agreement on this matter.\nYours sincerely,\ns/ Christian Valensi\nChristian Valensi\nFinancial Attache\nRegraded Unclassified\n31-C\nP\ny\nLE COMMISSAIRE AUX FINANCES.\nMay 27, 1944\nAF/46\nDear Mr. Secretary:\nReference is made to your letter to me of this date relating\nto the printing of franc notes to be used in France by the French\ncivilian authorities upon liberation.\nThe terms and conditions set forth in your letter are not ex-\nactly those which I had hoped for, and I should like to express\nreserves upon the political reasons for some of these terms and\nconditions. However, in view of the urgency of this matter, I\nagree to the terms and conditions set forth in your letter, as\nfollows:\n(1) There will be printed 305 million individual franc notes\nof EL total value of 300 billion francs as follows:\nNumber\nDenomination\nFranc Value\n50 million\n500 francs\n25 billion\n250 million\n1000 francs\n250 billion\n5 million\n5000 francs\n25 billion\n(2) The franc notes will be exactly the same in design as\nthose notes which are currently being printed for the Supreme Com-\nmander, Allied Expeditionary Forces, except that the word \"FRANCE\"\nwill be substituted for the phrase \"EMIS EN FRANCE\" in two places\non the face of the notes and the word \"FRANCE\" will be substituted\nfor the flag on the back of the notes.\n(3) Printing of the notes will begin as soon as possible after\nJune 15, 1944, when the printing of notes for the Supreme Commander,\nAllied Expeditionary Forces, is scheduled to be completed, and will\nbe completed as soon thereafter as available facilities will permit.\nIt is estimated that the printing of these notes would take approx-\nimately 2 months from June 15th, 1944.\nMr. Henry Morgenthau, Jr.,\nSecretary of the Treasury\nC\no\nP\ny\nRegraded Unclassified\n31-D\n- 2 -\n(4) The notes will be released to French control only at\nsuch time as the decision to release them can appropriately be\nmade by the Government of the United States.\n(5) The French Committee of National Liberation will pay\nin dollars the full cost of manufacturing, shipping, and storing\nthe notes, at such times and in such amounts as the Secretary of\nthe Treasury shall request. Payment may be called for as often\nas may be necessary to keep the United States currently reimbursed\nfor such costs. Payment shall be made without regard to any decision\nmade under paragraph (4) above.\nI note that you have estimated that the total cost of manu-\nfacturing and preparing for shipment of the quantities of franc\nnotes above specified will be approximately $832,650.00.\nI note also that you will explore the possibility of com-\nplying with my request that the U. S. Government store the notes\none-half in Great Britain and one-half in North Africa until such\ntime as their release to French authorities may be made as pro-\nvided in paragraph (4) above; and that you will investigate the\navailability of additional printing facilities which would ex-\npedite the completing of the notes. We plan to place with you a\nsecond order for approximately 300 billion francs consisting of\nnotes in smaller denominations than above specified, and, in view\nof this fact, the availability of additional facilities is of\nparticular importance to us in order that production may be accel-\nerated as much as possible.\nVery truly yours,\n(Signed) Mendes-France\nRegraded Unclassified\n31.E\nP\ny\nMay 27, 1944\nDear M. Mendes-France:\nReference is made to Secretary Morgenthau's letter to M. Jean\nMonnet, dated April 28, 1944, and to your letter to him dated May 13,\n1944, relative to the printing of franc notes to be used in France by the\nFrench civilian authorities upon liberation, and to subsequent conversa-\ntions you have had with representatives of this Department.\nI am setting forth below the terms and conditions upon which the\nfranc notes referred to above may be printed:\n(1) There will be printed 305 million individual franc\nnotes of a total value of 300 billion francs as follows:\nNumber\nDenomination\nFranc value\n50 million\n500 francs\n25 billion\n250 million\n1000 francs\n250 billion\n5 million\n5000 francs\n25 billion\n(2) The franc notes will be exactly the same in design as\nthose notes which are currently being printed for the Supreme\nCommander, Allied Expeditionary Forces, except that the word\n\"FRANCE\" will be substituted for the phrase \"EMIS EN FRANCE\"\nin two places on the face of the notes and the word \"FRANCE\"\nwill be substituted for the flag on the back of the notes.\n(3) Printing of the notes will begin as soon as possible\nafter June 15, 1944, when the printing of notes for the Supreme\nCommander, Allied Expeditionary Forces, is scheduled to be\ncompleted, and will be completed 8.S soon thereafter as available\nfacilities will permit. It is estimated that the printing of\nthese notes will take approximately two months from June 15,\n1944.\n(4) The notes will be released to French control only at\nsuch time as the decision to release them can appropriately be\nmade by the Government of the United States.\n(5) The French Committee of National Liberation will pay in\ndollars the full cost of manufacturing, shipping, and storing the\nnotes, at such times and in such amounts as the Secretary of the\nRegraded Unclassified\n31-F\n- 2 -\nTreasury shall request. Payment may be called for as often as\nmay be necessary to keep the United States currently reimbursed\nfor such costs. Payment will be made without regard to any\ndecision made under paragraph (4) above.\nIt is estimated that the total cost of manufacturing and preparing\nfor shipment of the quantities of franc notes above specified will be\napproximately $832,650.00.\nI will explore the possibility of complying with your request that\nthe United States Government store the notes one-half in Great Britain\nand one-half in North Africa until such time as their release to French\nauthorities may be made as provided by paragraph (4) above; and I will\ninvestigate the availability of additional printing facilities which\nwould expedite the completion of the notes. I understand that you plan to\nplace B. second order for approximately 300 billion francs consisting\nof notes in smaller denominations than above specified, and, in view of this\nfact, that you attach particular importance to the availability of\nadditional facilities in order that production may be accelerated as much\nas possible.\nWill you please confirm by letter your agreement to the terms and\nconditions specified above for the printing of the franc notes.\nVery truly yours,\n(Signed) D. W. Bell\nActing Secretary of the Treasury.\nM. Pierre Mendes-France,\nCommissaire aux Finances,\nComite Francais de la Liberation Nationale.\nRegraded Unclassified\n32\nVICTORY\nBUY\nEXECUTIVE OFFICE OF THE PRESIDENT\nUNITED\nSTATES\nWAR\nBONDS\nWAR REFUGEE BOARD\nSTAMPS\nWASHINGTON 25, D.C.\nOFFICE OF THE\nEXECUTIVE DIRECTOR\nAUG 16 1944\nMy dear Mr. Secretary:\nI am enclosing herewith a copy of the\nreport of the War Refugee Board for the week of\nJuly 31, to August 5, 1944.\nSincerely yours,\nPehle\nExecutive Director\nThe Honorable,\nThe Secretary of the Treasury.\nEnclosure.\nRegraded Unclassified\n33\nReport of the War Refugee Board\nfor the Week of July 31 to August 5, 1944\nEMERGENCY REFUGEE SHELTER IN THE UNITED STATES\nArrival of 984 Refugees from Italy\nThe refugees destined for the Emergency Refugee Shelter\nat Fort Ontario have arrived and are being settled in their\nnew quarters. The group represented nineteen nationalities,\nincluding persons from Austria, Yugoslavia, Poland, Germany,\nCzechoslovakia, Russia, Danzig, Rumania, Turkey, Bulgaria,\nHungary, Greece, Spain, and France. Ages ranged from 3 weeks\nto BO years. 754 of the refugees, including 225 children,\ncomprise 261 family groups; each family is to have its own\nquarters, apartments consisting of one, two, or three bedrooms,\naccording to family size, and a kitchen. There are dormitor-\nies for the single persons. A private agency is attempting\nto get in touch with relatives of the refugees who may be in\nthis country to notify them of the arrival of their kin from\nEurope. The arrival of these refugees received wide and very\nfavorable press comments.\nSITUATION IN HUNGARY\nThe Horthy Proposal\nThrough the International Red Cross, the Horthy govern-\nment has recently indicated to the governments of the United\nStates and Great Britain that it will permit the emigration\nof certain categories of Jews. The proposal apparently is\nthe result of the various warnings and appeals that have been\naddressed to the Hungarian authorities. Since it is couched\nin terms which in effect say \"we will permit Jews to leave\nHungary if the United States and Great Britain will take care\nof them, Il it is regarded as a direct challenge to the two\ngovernments.\nAt the instance of the Board this government proposes\nto accept the challenge. We have submitted our views to the\nBritish who we hoped would agree to join us in a reply to\nthe International Red Cross on August 7th, in which we ask\nthe International Red Cross to advise the Hungarian Govern-\nment that we will undertake to care for all Jews who are\npermitted to leave Hungary and who reach neutral or United\nNations territory, and to find havens of refuge for them.\nWe have taken the position that our acceptance of the\nproposal should be so clear and unequivocal that in the eyes\nof the Hungarians and of the world our action will be regarded\nRegraded Unclassified\n34\n- 2 -\nas a genuine expression of our willingness to save the Jews of\nHungary. Accordingly, our reply to the International Red Cross\nwas cabled to Minister Harrison in Bern for delivery on August\n7th. In response to the British government's request for a\ndelay of three or four days, it was later agreed that delivery\nof our reply should be postponed until August llth.\nInternational Red Cross Work in Hungary\nWe were advised by our representative in Bern of the\npublication on July 18 of an International Red Cross Committee\ncommunique announcing that the Hungarian authorities, following\nsteps taken in Budapest by the International Red Cross Committee\nin Geneva, have given the Committee official assurances that\ntransportation of Jews beyond Hungarian frontiers has ceased;\nthat the Committee is authorized to furnish relief to Jews\ninterned or in forced residence in Hungary, and is empowered to\ncooperate in the evacuation of all Jewish children under ten\nyears of age who are in possession of visas to reception\ncountries; and that all Jews in Hungary holding entrance visas\nto Palestine will receive permission from the authorities to\nleave for that country.\nMcClelland discussed this whole question on July 24th with\nCarl Burckhardt, acting president of the International Red\nCross Committee, and recommended that the International Red\nCross discuss with the Hungarian Government the question of\nraising the age limit of the children to be evacuated to sixteen\nyears for boys and eighteen years for girls. The Committee is\nawaiting detailed confirmatory information from its delegate\nin Budapest, particularly regarding evidence that the Internation-\nal Red Cross representatives will actually be accorded local\npermission and practical possibilities to carry out a relief\nand evacuation program. The Committee has already dispatched\none of its delegates from Berlin to Budapest and plans to send\nthree more representatives as soon as possible. Burckhardt\nintimated that there might be a possibility of arranging to\ndispatch to Hungary one or two capable Swiss persons as con-\nfidential WRB representatives, probably attached to the\nInternational Red Cross mission.\nHungary Agrees to Permit Sending of Food Packages through\nInternational Red Cross to Persons Interned in Concentration\nCamps\nThe Apostolic Delegate in Washington has advised this\nGovernment of the approach by the Holy See to the Apostolic\nNunciatures in Germany, Rumania, Hungary, and Slovakia, to\nenlist their interest for the purpose of obtaining for Jews\ninterned in Germany and Axis-controlled countries treatment\nRegraded Unclassified\n35\n- 3 -\nsimilar to that granted to civilian internees to whom the\nprovisions of the Geneva Convention are applied by analogy.\nThe Apostolic Nunciature in Budapest has responded to the\nCardinal Secretary of State, informing h1m that the Government\nof Hungary will authorize the sending of foodstuffs through\nthe channels of the Red Cross to persons interned in concentra-\ntion camps.\nSpanish Visas for Hungarian Jews\nWe were advised by our Embassy in Madrid that, in response\nto separate representations on the part of the Embassy, the\nSpanish Government has already authorized issuance of visas to\n500 Jewish children in Hungary whom it is desired to bring to\nSpanish Morosco for temporary refuge. This is in addition to\nthe 1500 Spanish visas authorized for Jews in Hungary and\nGermany to whom Palestine entry permits had been or were to\nbe issued.\nPalestine Certificates for Hungarian Jews\nIn 2. further report on the situation in Hungary with\nrespect to efforts to rescue the Jewish population, Hirschmann\nadvised us that lists of the names of 8,200 persons for whom\nPalestine certificates have been authorized have been delivered\nto the Swiss Legation in Hungary through the Swiss Minister in\nAnkara. The latter and the British Embassy in Ankara have\nconfirmed to Hirschmann that they both had information to the\neffect that these lists have been received in Budapest. In\nview of the probability that many of the approved certificate\nholders have already been deported, methods of attempting to\nlocate these deportees are being explored in order that the\ncertificates may be made available to them.\nOf these 8,200 Jewish refugees, 2,000 are preparing to\nproceed from Hungary to Rumania and are awaiting Rumanian\ntransit visas. Hirschmann has urged Cretzianu to press his\nGovernment in Bucharest to provide these visas without delay.\nAdditional lists are being prepared by the Jewish Agency\nfor submission to the British who have up to the present\nauthorized certificates for all names that have been submitted.\nEVACUATIONS TO AND THROUGH TURKEY\n40 Children Arrive from Bulgaria\nAfter waiting for two years, 40 Bulgarian refugee children\nfinally arrived by rail in Ankara on July 30 and departed the\nRegraded Unclassified\n36\n- 4 -\nfollowing day for Palestine, according to a report received\nfrom Hirschmann, These children indicated that about 200 more\nwere being prepared for emigration from Bulgaria by rail via\nTurkey to Palestine.\nHirschmann is pursuing the matter further to ascertain the\nintentions of the Bulgarian Government with reference to its\nJewish citizens and their emigration. The Jewish community of\nRousse has been officially designated as the agency to make\narrangements for those Jews wishing to go to Palestine.\n(Minister Johnson has advised us from Stockholm that\nEhrenpreis, former Chief Rabbi of Bulgaria, has received written\nassurances that everything possible is being done to improve\nthe situation of the Bulgarian Jews.)\nWe have inquired of Hirschmann whether efforts are being\nmade to induce Turkey to permit the transit of the 400 to 500\nrefugees which he had reported Bulgaria was ready to allow to\nemigrate weekly.\nTurkish Shipping Restricted\nOur Embassy in Ankara has notified us that Turkey has\ndiscontinued the movement of Turkish ships in the Aegean and\nBlack Seas. However, they will permit the sailing of certain\nships between Iskenderun and Mersin, as well as some wooden\nships to transport coal between Istanbul and Zonguldak.\nProposal to Evacuate Refugees on Rumanian Boats\nMinister Johnson in Stockholm has informed us that the\nRumanian Minister to Sweden strongly supports a proposal to\nevacuate Jews from Rumania. He has agreed to forward with a\nfavorable recommendation the request of the Stockholm section\nof the World Jewish Congress that the Rumanian Government\nsupply transportation for this purpose. The Rumanian Minister\n1s quite optimistic and believes that not only will his\ngovernment be receptive to this request but also that the\nGermans will not be in a position to refuse safe-conduct.\nHowever, in view of the extensive sinking and damage of\nRumanian transport vessels at Odessa, he does not think that\nmore than two Rumanian boats are available unless in addition\ntwo or three of those damaged were returned and made service-\nable. The proposal will, of course, receive our careful\nconsideration and will be sent to Hirschmann in Ankara for his\nviews and recommendations.\nCONDITION OF JEWS IN TERRITORY LIBERATED BY SOVIET RUSSIA\nThe Board has asked the American Embassy in Moscow to obtain\nthrough official channels information concerning the numbers\nRegraded Unclassified\n37\n- 5 -\nand condition of Jews found in Soviet-liberated areas and\nconcerning the treatment of civilian populations during enemy\noccupation.\nRUSSIAN REFUGEES\nMcClelland, our representative in Switzerland, advised us that,\non the basis of reports received from the International Red\nCross delegate in Bucharest, the International Red Cross has\nmade an urgent appeal for funds to assist several thousand\nSoviet refugees who were forced to leave their homes by the\nretreating Germans and who are in an extremely precarious\nsituation in Rumania. International Red Cross delegates have\nalso approached the Rumanian Government in an attempt to secure\nwork permits for them.\nThe Board cabled this information to Ambassador Harriman in\nMoscow, suggesting that inquiry be made as to whether the\nRussian Government is informed concerning the plight of these\nrefugees and whether it has any specific suggestion as to the\nmanner in which the War Refugee Board could assist in ameliorat-\ning their condition. At the same time we notified Hirschmann\nof this report and asked him to investigate and report to us\nany information which he may obtain concerning this situation.\nJEWS IN ITALY\nIn answer to the State Department's inquiry concerning the\ncondition of Jews in Rome, Myron Taylor has reported that\n12,000 Jews were in Rome before the Armistice (September 8, 1943)\nand about the same number on June 4, 1944. In the intervening\nperiod about 2,000 were lost due to deportations and massacres,\nwhile approximately the same number arrived in Rome during the\nperiod from Northern Italy and France.\nINTERGOVERNMENTAL COMMITTEE\nRemoval of 3,000 Jewish Children from France to Portugal\nHaving been advised of a private proposal to evacuate\n3,000 registered children from France to Portugal, the Inter-\ngovernmental Committee cabled the Board that it felt the real\ndifficulty with the proposal was obtaining French permission\nfor the exit of the children from France. The Intergovernmental\nCommittee pointed out that, since approaches to the French by\nSwitzerland to evacuate children from France failed a few\nmonths ago, it recommended approaches now to the French auth-\norities by the International Red Cross Committee. The Inter-\ngovernmental Committee stated that it 1s ready to take this\nup with the International Red Cross Committee either independent-\nly or jointly with the Board. We replied that, although the\nRegraded Unclassified\n38\n- 6 -\nproposal to remove 3,000 Jewish children from France was a\nvariant on 8. scheme which had been repeatedly rejected by the\nFrench and Germans, nevertheless, we were willing to join the\nIntergovernmental Committee in any request it saw fit to make\nof the International Red Cross. The Intergovernmental Committee\nhad also suggested that the 5,000 American visas originally\nintended only for children from France, arriving in Switzerland,\nSpain, or Portugal should be used for those evacuated from\nHungary as well as from France. Our reply to the Intergovern-\nmental Committee stated that the Board was in agreement with\nthis suggestion. We are presently completing the necessary\narrangements for this so that our consular officers in the\naforementioned neutral countries will be appropriately instructed.\nEvacuation of Refugees from Northern Italy\nFollowing our receipt of information to the effect that\nHeathcotte-Smith recommended to the Office of the Intergovern-\nmental Committee in London that an approach be made to the\nGermans to release refugees deported from Italy and deliver\nthem to the Allies, the Board suggested to Ambassador Winant\nthat the matter be discussed with the British Government. We\nindicated that we did not feel that we should limit ourselves\nto deportees from Italy and reminded him of this Government's\nposition that it would, in cooperation with other sympathetic\ngovernments, find havens of refuge for these victims of Nazi\npersecution. Ambassador Winant replied that the Intergovern-\nmental Committee suggested the intervention of the Vatican in\napproaching the German Government concerning non-Italian\ncivilian refugees held in Northern Italy and that the British\nand American Governments should assure the Vatican that\narrangements would be made for the transportation, care and\nmaintenance of the refugees.\nThe Board in its response to Ambassador Winant informed\nhim that Sir Herbert Emerson's proposal was completely accept-\nable to our Government and suggested that the latter discuss\nit with the British Government and secure its consent to\nrequesting the Vatican to intervene. This request is to\ncarry with it the understanding, as suggested by the Inter-\ngovernmental Committee, that the British and American Govern-\nments will share the responsibility of making arrangements for\nthe transportation, care and maintenance of the refugees involved.\nPlenary Session of the Intergovernmental Committee\nWe have received a cable from London quoting a press release\nto British papers on the coming Plenary Session to be held in\nLondon beginning August 15. The program calls for general\ndiscussion of a full report to be presented by Sir Herbert\nEmerson, the Director, on the work of the Committee during the\nRegraded Unclassified\n39\n- 7 -\nlast year, as follows: (1) Measures relating to the rescue\nand preservation of threatened persons still within the\nterritory of Germany and her European Allies or territory\noccupied or controlled by them; (2) Pre-armistice measures\nrelating to persons who may have come out of such areas to\nneutral or liberated areas; and (3) Post-armistice measures\nfor relief, repatriation, and resettlement of those who can-\nnot be repatriated.\nRECOGNITION OF LATIN AMERICAN PASSPORTS\nIn response to Ambassador Norweb's cable suggesting our\napproach to Switzerland concerning the deportation from\nVittel of hundreds of claimants to American and Latin\nAmerican citizenship, we asked him to send to Minister\nHarrison and McClelland in Bern the list of people and other\ndocuments which he advised he had received from refugees\nrecently repatriated to Great Britain via Portugal. We also\nadvised him that our representative in Bern was in frequent\ncommunication with the Swiss on these matters and that\nseveral important measures had been taken already with Swiss\nassistance.\nThe Board cabled Minister Harrison and McClelland advising\nthem that we had information to the effect that further\ndeportations from Vittel took place on May 16 and requesting\nthat they make appropriate inquiries to determine the facts.\nWe also asked them to make efforts, if the report was found\nto be true, in the manner previously outlined to them in\nwhich we requested that representations in the strongest\nterms be made on behalf of those to whom documents have been\nissued in the name of American Republics.\nAmbassador Winant cabled on August 2, 1944, advising of his\nreceipt of a detailed report dated July 7 from the Polish\nLegation at Lisbon concerning the developments in Vittel.\nThis report includes the names of 260 Polish Jews holding\nLatin-American certificates and indicates in each case whether\nor not that person has been deported from Vittel. The Office\nof the Jewish Agency in London has asked Geneva to inquire\nabout the location and condition of the deportees in view of\nthe fact that apparently most of them hold Palestinian\ncertificates also.\nThe Intergovernmental Committee believes that the only hope\nfor either those deported from Vittel or those still held\nthere is to include them in the actual exchange list for\nPalestine or the American Hemisphere. The British Government\nand the Jewish Agency have been consulted and everything is\nbeing done to include those possessing Palestine certificates\nin the next exchange. The Jewish Agency Office in Geneva has\nRegraded Unclassified\n40\n- 8 -\nadvised the Intergovernmental Committee that the Germans\nprefer South American exchange to exchange to Palestine.\nThe London Office of the Jewish Agency is asking that the\nmatter be taken up with the Board by its New York Office.\nEVACUATION OF SPANISH REPUBLICAN REFUGEES TO MEXICO\nIn response to our cable of June 24, concerning the granting\nof Mexican visas to certain Spanish Loyalists and other refugees,\nDexter advised us that he interviewed the Mexican Minister to\nLisbon whom he found to be sympathetic and convinced of the\nneed for prompt action on this matter. However, he learned\nthat there were some differences between the Mexican Minister\nof Interior and the Mexican Foreign Office. Lists and pro-\ncedures were being worked out while Mexico was being contacted\nfor further instructions.\nNorweb informed the Board that State Department instructions\nof June 24 for safeguarding the security of Spanish Loyalists\nseeking visas to Mexico could be carried out. However, the\nMexican Minister had to await clarifying information from\nhis Government and realized that 1t was unwise to grant visas\nuntil the Portuguese, Government had accepted his credentials.\nMeanwhile, the preliminary security check of the refugees\nconcerned will be pursued in Portugal.\nTEMPORARY HAVENS--MEXICO\nThe Board is seeking information through our Embassy in Mexico\nconcerning the text of an alleged proclamation by the President\nof Mexico to the effect that that country will furnish\nfacilities for admission of refugees from enemy-occupied Europe\nfor the duration of the war.\nRELIEF FOR FRENCH MAQUIS\nMcClelland reports that he has been in close contact with the\nFrench \"Conseil de la Resistance\", especially with their\n\"Service Social\" section. The \"Service Social\", which has\na very small budget, 1s burdened with an ever increasing\nresponsibility for assisting families of Maquis, of executed\npatriots, and of hundreds of thousands of political prisoners\nin France. McClelland reported that he has made funds avail-\nable for this work and has paid for a modest cargo of medical\nsupplies for the program. McClelland's action received the\nstrong support of Minister Harrison who has joined MoClelland\nin recommending B. continuation of assistance to this group\nfor humanitarian, military and political reasons. Meanwhile,\nthe Board has presented the problem and McClelland's recommenda-\ntions to French relief groups in this country for their\nconsideration and possible aid.\nRegraded Unclassified\n41\n- 9 -\nRELATIONS WITH PRIVATE AGENCIES\nBecause of the serious overtaxing of government cable\nfacilities at this time, we have advised interested private\nagencies in this country to transmit as many of their\nmessages as possible through commercial channels, unless\nthere is some compelling reason which requires the use of the\nBoard's facilities, in which case we are perfectly willing\nto have our facilities used. We also pointed out that in\nmany cases private facilities have yielded quicker results\nthan are obtained through our facilities. Replies have\nbeen received from the agencies indicating their understanding\nof our position and their willingness to cooperate in every\nway.\nExecutive Director\nJ. J Pehle\nRegraded Unclassified\n42\nEMBASSY OF THE\nUNITED STATES OF AMERICA\nNO. 1780\nSan Jess, Cesta Rica.\nAugust 16, 1944\nSubject: Claimants to Cesta Rican Nationality\nRemoved from the Internment Camp at\nVittel, France.\nSECRET\nThe Henerable\nThe Secretary of State\nWashington, D. c.\nSir:\nwith reference to the Department's instruction\nno. 607 of July 24. 1944, transmitting a list of the\nclaimants to Cesta Rican nationality who were reneved\nfrom the internment camp at Vittel, France, I have the\nhonor to enclese herewith a copy and translation of a\nnote received from Foreign Minister Acenta on the subject.\nIt will be seen that the Minister for Foreign\nAffairs reiterates his previous assurance that the\nCesta Rican Government will consider as valid doon-\nmontation hold by such persons which was issued is the\nname of Cesta Rica. Mereever, he requests the United\nStates Government to ask the Swiss Government to address\na protest to Germany along the lines recommended in the\nenclosure to the Department's instruction under refer-\neace. It will also be noted that he indicates a desire\nto obtain the exchange of certain nationals in when the\nCesta Rican Government is particularly interested.\nRespectfully yours,\nTay Allen Des Pertes\nEnclosures:\nCopy and translation of\nForeign Hinister's Note\n1836-B of August 11. 1944.\n310\nLDV-mm\nRegraded Unclassified\n43\nEnclosure 2 to despatch no. 1780\nRegraded Unclassified\nof August 16, 1944, from Embassy.\n( Translation )\nSan Jase, Cesta Rica.\nREPUBLIC OF COSTA RICA\nMINISTRY OF FOREIGN RELATIONS\nNo. 1836-B\nSan Jene, August 11. 1944.\nMr. Ambassador:\nI have the honer to acknowledge the receipt of Your Excellency's courteous\nnote No. 312 of July 31 last, in which you were pleased to communicate to no\nthat various persons claiming Cests Rican nationality, named as fellows:\nLichtmann, Wetsstein, Reashandler, Mandel-baum and Lidenbaum, have been removed\nfrom the internment camp of Vittel, France. by the German authorities to use\nknown places; and with respect to this information, the Mubassy outlines the\nmeasures taken with regard to persons in analegous circumstances as a result\nof presenting documents of identification which the German efficials dispute\nand designate as of unlawful origin.\nCertainly the Government of Centa Rica has confirmed, in the notes cited\nby Your Excellency, that it will consider effective and valid all the doou-\nments which numerous European individuals have submitted in order to obtain\nthe pretection of our flag. since it has no notice that these documents have\nbeen deneunced as invalid, nor has it received authentic preef of such in-\nvalidity. and while such domunciations and proofs are not produced and\nqualified by the national authorities, the passports and documents emanating\nfrom its efficials must be considered valid and sufficient for the purposes\nfor which issued. Consequently By Government demands for bearers of pass-\nports and documents of identification issued by its authorities all the pre-\ntoction conferred upon citizens of a belligerent nation by the well-known rales\nof International law. and particularly the Convention of Geneva, with respect\nto Priseners of War.\nMy Government cannot admit that the Government of Germany may assume the\nqualification of such documents and pass upon RSE 11 whether or not its yes-\ncossers obtained then legitimately or illegitimately, in order to attribute\nor deay to them, as the case may be, Cesta Rican untionality and the cor-\nresponding humanitarian treatment. the recognize this preregative would be to\nleave (eur) nationals expesed to the eruelties and arbitrary actions of the\nagents of the States which hold them as priseners or interness, on the pre-\ntext that the documentation submitted does net merit credence as establishing\nthe nationality which they claim. And this is impossible.\n44\n-2-\nRegraded Unclassified\nMy Gevernment begs Your Excellency to be se good as to entreat Switser-\nload, which represents its interests in Germany and the territories occupied\nby German forces, to bring to the attention of the German Gevernment its\nmest energetic protest against the conduct displayed in this regard by the\nGerman efficials: against the qualification of the Cesta Rican decuments\nof identification in the possession of numerous civilian priseners and\ninterness; against the transfer of the same without previous notice to use\nknown places, in such a manner that neither the Protective Government nor\nthe Committee of the International Red Cress can watch over the treatment\nwhich is meted out to them; against the inhuman manner in which they (these\npriseners) have beer,treated, in violation of (the most) elementary consi-\nderations of mercy and the stipulations of agreements solemnly subscribed\nto by Germany. For example, this Ministry has private information that in\nthe case of Dr. don Jerge Cerdere Arias the prisener vas subjected to hard labor\nand violent treatment, although the Government of Switzerland and the Com-\nmittee of the International Red Cress have not been able to give information\neither as to the exact place in which he was or concerning his health or\nother living conditions, in seswer to the insistent entreaties for such data\nby my Government.\nBy the same method, my Government demands from the German Government\nthat it give news of each of the persons under reference, concerning his\nwhereabeuts and state of health, as well as with regard to all others who,\nwithout having been designated by name or surname in any note, have demanded\nthat they be considered as Cesta Ricans on the strength of documents issued\nby Cesta Rican efficials and subsequently have been removed from the location\nin which they were, to be conducted to unknown places. It is further demanded\nthat they be returned to their demiciles or to the former civilian com-\ncentration camps in order to accerd them the established protection or to\ninclude them in the exchanges (of priseners) agreed upon for their repatria-\ntiem.\nIn declaring its protest against the irregular procedure of the German\nGovernment, as inhuman and vielating the accepted rules of Civilised Peoples,\nand in formulating the demands expesed, my Devernment calls attention to its\n(ewn) strict compliance with such rules at all times with respect to the\nprisoners and detained civilians who are subjects of Germany. This attitude\nhas been recognized without reserve by the Delegate of the Committee of the\nInternational Red Cress and the interested parties thouselves.\nThe Government of Cesta Rica trusts that the Government of Germany will\ncondeño the justice of its protests and demands and will accord to the docu-\nments issued by its efficials the full value inherent in them, just as vas\naccorded in Cesta Rica to the documents drawn up by the German authorities;\nand that, consequently, the German Government is future will abstain from\ndenying their validity 07 otherwise subject them to discussion, for this mat-\nter 10 the exclusive concern of (our) national agents; and it hopes. in the\nsame way. that it will proceed to return to their demiciles and to the\ncivilian concentration camps in which they fernerly were kept the priseners\nwhich 1t has sent to unknown places. It particularly invekes asev the fulfil-\nment for the exchange of wilitary priseners and civilian interness which\n45\n- 3 -\nvas approved with respect to the following Cesta Ricans: Jerge Conders\nAttas and family; Carles Gambea Redrigues; Redrigo Games Cordere; Rexama\nand Asyadee Timeco Lara; Antonia Jinenez Bennefil de Charbenell and her\ndaughter: Carles Collade Martines; and Alberte Gubierres Benavides, the\nlast two in Italy and the others in France and Belgium.\nThanking Your Excellency in anticipation of the attention which he\nwill be pleased to give to the present communication, pray accept the\ntestimeny of my highest and mest distinguished consideration.\n(signed) JULIO ACOSTA\nMM.ma\nRegraded Unclassified\n46\nGEK-30\nCairo\nThis telegram must be\npersphrased before being\nUndated\ncommunicated to anyone\nother than a Government\nRec'd August 16, 1944\nAgency. (RESTRICTED)\n11:00 a.m.\nSecretary of State,\nWashington.\nGREEK\n252\nI am advised that the British Embassy recently addressed 8. note\nto the Greek Prime Minister in which after referring to former\nPrime Minister Tsouderos' endorsement of the United Nations declara-\ntion of December 1944 with regard to the return of refugees\n( Reference Embassy's Greek 152, December 30, 7 p.m.) authorization\nin principle was sought for the reentry into Greece immediately\nfollowing liberation (1.0. upon entry of AML) of all British nationals\nformerly domicileo in Greece who have signified to the British\nEmbassy e desire to return to Greece and of whom a list is to be\nsubmitted to the Greek Government in due course. The British Embassy\nstates this list will include representatives of all British business,\nphilanthropic and similar interests towards Greece which are being\nconvassed by various British Government departments.\n(Repeated to Murphy as No. 9).\nMr. Papandreou is said to have replied confirming Tschouderos'\ndeclaration, assuring Embassy that British nationals would be among\nfirst refugees permitted to return to Greece end adding hope that\nlist when presented would not contain names of undesirables.\nI suggest that the Department may wish to consider urgently\nsome similar approach to Greek Government and compilation of cor-\nresponding American list.\nSHANTZ\nWSB\nRegraded Unclassified.\n47\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAmerican Embassy, London\nTO:\nSecretary of State, Washington\nDATE:\nAugust 16, 1944\nNUMBER:\n6601\nSECRET\nReference is made herewith to the July 14 cable No. 5529 from the\nDepartment.\nForeign Offices reply to note from Embassy conveying WRB's objections\nto alleged contradictions in British policy with respect to escape of refugees\nfrom the Balkans to Italy, is being forwarded via airmail by the Embassy.\nFact that refugees must not be discouraged from escaping to Italy is\nreiterated by Foreign Office and it regrets that intention of conditions under\nwhich Ackermann was appointed to Italy should have been misconstrued by the\nWar Refugee Board.\nHowever, the Foreign Office is in agreement with military authorities\nthat influx of refugees into Italy should not increase to an extent that addit-\nional burden would be placed on military in respect of operation of camps for\nrefugees in North Africa and the Middle East, not to overtax supply and trans-\nport in Italy. Attention is called to fact that Combined Chiefs of Staff had\nalready been informed by Supreme Allied Commander Mediterranean that unless ade-\nquate assistance from UNRRA were forthcoming there could be no expansion of\nexisting facilities.\nIn addition Foreign Office explains that there was no intention of\nsubordinating Ackermann to Sub Commission Displaced Persons or to restrict his\nactivities to investigation only, and that in this connection conditions men-\ntioned were rather to ensure that before he might undertake any negotiations\nwith enemy aliens he would consult other organizations concerned and to ensure\nhis cooperation with other bodies dealing with refugees.\nWINANT\nDCR:EBH\nRegraded Unclassified\n48\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAmerican Embassy, London\nTO:\nSecretary of State, Washington\nDATED:\nAugust 16, 1944\nNUMBER:\n6606\nCONFIDENTIAL\nAnswering certain remarks of Czechoslovak and Polish delegates at\na plenary session of IGC August 15, the director requested the press not to\nreport him. It had been suggested by the Polish delegate that the IGC\nextend assistance to persecuted people in countries of persecution prior to\ntheir escape to countries of safety and the failure of attempt to rescue in-\nmates of the Vittel camp holding Latin American passports was deplored by\nboth delegates.\nIt was emphatically asserted by the director that aid was being\ngiven to persons in countries of persecution but that he could not discuss\nthe point more fully because of the clandestine means. Concerning the Vittel\nquestion he said that Latin American Governments were requested to condone\nirregular issuance of passports to refugees and to make representations to\nthe German Government on their behalf, that practically all had done so but\nwithout success. He pointed out however, that some persons holding such pass-\nports had been exchanged for detained Germans and that efforts to enlarge this\nmeans of resque were being made.\nWINANT\nDCR:VAG\n8/19/44\nRegraded Unclassified\nMAE-221\nLondon\n49\nThis telegram must be\nparaphrased before being\nDated August 16, 1944\ncommunicated to anyone\nother than a Government\nRec'd 9:56 p.m.\nagency. (SECRET - o )\nSecretary of State,\nWashington.\nUS URGENT\n6608, August 16, 8 p.m.\nFOR WAR REFUGEE BOARD FROM DUBOIS\nSECTION ONE: The exact text of a joint declaration which has\nbeen agreed upon by the British Government is contained in message No.\n6609 immediately following this message. (Refer your 6408 of August\n12 relating to the offer concerning emigration and treatment of Jews\ncommunicated by Hungarian Government to the United States and British\nGovernments.) This joint statement has been agreed upon here and will\nbe released over the BBC on midnight Thursday, August 17.\nSECTION TWO: This declaration was agreed upon after consul-\ntation between Ambassador Winant and Foreign Minister Eden and after\nconsiderable discussion with the Foreign Office. It has been approved\nby the British War Cabinet.\nSECTION THREE: The following change was made in the joint\ndeclaration suggested in your 6408. The words \"have accepted the offer\nof the Hungarian Government to the release of Jews and will make arrange-\nments for the cafe of such Jews\" was substituted for the words \"will\nmake arrangements for the care of all Jews\". The purpose of this\nsubstitution was to meet the British objection to stating that the two\nGovernments were prepared to receive all Jews as distinguished from the\nJews referred to in the Hungarian offer. It is our feeling that the\nlanguage which we have agreed upon as a substitute, while meeting the\nBritish objection, at the same time both to the world and to the The\ngarian Government will be substantially as effective as the language\nsuggested in your 6408. This is particularly true with respect to its\neffect on the Hungarian Government in light of the fact that the message\nwhich has already been delivered to Intercross by the United States\nGovernment is worded in terms of receiving all Jews. If it is felt that\nin light of the fact that the note which the United States Government\ndelivered to Intercross contained the words \"all Jews\" these words should\ntherefore be included in any public announcement made by the United States\nGovernment. This point could be taken care of by the United States\nGovernment at the same time that it releases the text of the joint de-\nclaration releasing the text of the note which the United States Govern-\nment delivered to Intercross.\nRegraded Unclassified\n50\n-2- #6608, August 16, 8 p.m. from London.\nSECTION FOUR: Further details concerning the discussions with\nthe British will be furnished to you by Dubois upon his return to\nWashington.\nSECTION FIVE: The British Government will convey the text of\nthis joint declaration to Intercross and also convey the text to\nPortugal, Spain, Sweden, Switzerland and Turkey.\nSECTION SIX: Please acknowledge at once the receipt of this\nmessage and the immediately following message.\nWINANT\nWMB NPL\nRegraded Unclassified\n51\nGEK-105\nPLAIN\nLondon\nDated\nAugust 16, 1944\nRee'd\n2:45 p.m.\nSecretary of State,\nWashington.\nUS URGENT\n6609, Sixteenth.\nCONFIDENTIAL FOR THE WAR REFUGEE BOARD FROM\nDUBOIS.\nThe following is the exact text of the joint\ndeclaration agreed upon by the British Government:\nIntereross has communicated to the Governments\nof the United Kingdom and the United States an offer of\nthe Hungarian Government regarding the emigration and\ntreatment of Jews. Because of the desperate plight of\nthe Jews in Hungary and the overwhelming humanitarian\nconsiderations involved the two governments are informing\nthe Government of Hungary through Intercross that,\ndespite the heavy difficulties and responsibilities\ninvolved, they have accepted the offer of the Hungarian\nGovernment for the release of Jews and will make\narrangments for the care of such Jews leaving Hungary\nwho reach neutral or United Nations territory, and also\nthat they will find temporary havens of refuge where\nsuch people may live in safety. Notification of these\nassurances is being given to the governments of neutral\ncountries who are being requested to permit the entry\nof Jews who reach their frontiers from Hungary. The\nGovernments of the United Kingdom and the United States\nemphasize that, in accepting the offer which has been\nmade, they do not in any way condone the action of the\nHungarian Government in foreing the emigration of Jews\nas an alternative to persecution and death.\nWINANT\nEMB\nRegraded Unclassified\n52\nPLAIN\nKEM-191\nLondon\nDated August 16, 1944\nRec'd 9:08 p.m.\nSecretary of State,\nWashington.\n6612, Sixteenth.\nFourth Plenary Session Inter-Governmental Committee on Refugees\nnet 11 a.m. yesterday. Delegates of 36 countries were present as well as\nrepresentatives of War Refuges Board, Intercross, UNRRA, SHAEF and ILO.\nAlso large attendance as observers of representatives of private and volun-\ntary organizations, Jewish agencies, et cetera. Press and public were\npresent on invitation and today's papers give extensive coverage of first\nday's proceedings. All important press reports will be airmailed later.\nSession was opened by Lord Winterton, Chairman of Executive Committee, and\nproceeded immediately to election of Sub-Committee on Nominations consisting\nof representatives of Great Britain, Russia, South Africa, Belgium, Greece,\nChile, Egypt, Colombia and India. This Sub-Committee appointed British\nrepresentative as its chairman and quickly reported following nominations:\nfor Chairman of Plenary Session Australian delegate; for Vice-Chairman\nFrench delegate; for Deputy Vice-Chairman delegate of Luxembourg. These\nnominations unanimously approved by Committee. Chairman is Bruce, Australian\nHigh Commissioner in London; Vice-Chairman de Jean, French delegate to\nAllied Governments in London.\nChairman then suggested and Committee unanimously approved election\nof Sub-Committee to examine draft rules and regulations and to report its\nrecommendations to Plenary Committee: representatives of United State,\nFrance, Argentina, New Zealand, Eire, Sweden, Venesuela, Norway and Poland.\nSir Rebert Emerson, Director of Committee, then rendered his re-\nport which was largely an explanatory comment on his written report previously\ncirculated to member governments (enclosed with desputch No. 17213 August 1).\nHe touched on relations with UNRRA and pointed out that IOC's functions will\ninclude relocation of displaced persons long after UNRRA may have ceased to\nSaid IOC hoped to place in necessary countries its own representatives who\nwill be nationals of the country in which stationed and whose functions will\nincluse general liaison work between IGC and government of country to which\nassigned. with regard to problem of Hungarian Jews, he regretted being\nunable to report on present situation in detail but said Horthy offer was\nbeing actively pursued and that he had high hope that IOC would be able to\nrender valuable help in this connection.\nChairman then invited delegates to express opinions. Delegate of\nIndia, acting under instructions of Indian Government, proposed that mandats\nof IGC be extended to cover persons in Japanese occupied areas and refugees\nfrom Japanese oppression. Mexican delegate pointed out that 14 of 36 member\nRegraded Unclassified\n53\n-2-$6612, August 16, from London.\ncountries spoke Spenish and proposed that for the sale of uniformity, par-\nticularly with respect to publicity, Committee should issue official Spanish\nversion of reports and other important material. Also remarked that he\nwished to see more help extended to Spanish Republican refugees and likewise\nurged acceptance of Horthy offer. Finally recomended close contact between\nIOC and free novements in occupied countries since latter had means and\nchannels to assist escape of oppressed persons.\nEgyptian delegate recommended urging individual governments to commit\nthemselves to receive back refugees of their nationality and to guarantee\nthem full civil rights. Polish delegate urged that IOC extend assistance\nto persecuted people in countries of persecution before their escape to\ncountries of safety. Also deplored failure to attempt to rescue inmates\nof Vittel camp holding Latin America passports. Delegates of Czechoslovakia\nsupported remarks of Polish delegate on Vittel question.\nReplying to these remarks Director stated in substance (1) ICC is\nresponsible for assisting refugees from Europe now in India and will assist\nthem. But problem of statelessness has not arisen in Orient and function of\nassisting persons within Japanese occupied territory is one of relief rather\nthan relocation and thus belongs more properly to UNRRA than to IGC particu-\nlarly since UNRRA has Far Eastern division. (2) Executive Committee will\nconsider proposal for official Spanish translations. IGC is, in fact, assis-\nting Spanish Republican refugees to extent of its ability. (3) IOC strongly\nagrees that it should do all it can to urge responsible governments to bring\nabout conditions within their territories which would enable refugees of\ntheir\nenjoy full civil rights therein.\n(4) His raply to renarks of Polish and Csechoslovak delegates will be\ncovered in separate tolagram.\nDelegate of Dominican Republic requested Director to inform meeting\nof refugee work done by Dominican Government. Director briefly pointed out\nthat Dominican Republic was one of first and most liberal in response to\nappeals to assist refugees but added that laok of time did not permit him\nto go into detail.\nPlenary Session then adjourned until morning of August 17.\nSub-Committee on Rules net afternoon August 15 and unanimously\nadopted draft and finance regulations with only a few minor textual changes\nin interests of clarity. Also unanimously agreed that furnishing of Spanish\nversion of reports should be handled as executive natter between Executive\nCommittee and any interested member government; Director undertook to ass\nthat official Spanish version would be made of any material specially No-\nquested by any member.\nSub-Committee on Rules then adjourned after appointing its Chairman,\nPolish Ambassador, to draw up report of its recommendations for submission\nto Plenary Session. Delegates and their associates were entertained by IGC\nat reception yesterday evening and will attend luncheon today given by\nAritish Foreign Minister.\nPLEASE INFORM WAR REFUGEE BOARD.\nWINANT\nRegraded Unclassified\n54\nPart-au-Prince, Haiti, August 16, 1944\nSECRET\nNO. 159\nSubject: Transmitting Text of Instructions Issued\nRegraded Unclassified\nby Haitian Government to Legatien in Born\nin regard to Persons Naturalized Abread.\nThe Henerable\nThe Secretary of State,\nWashington, D. c.\nSir:\nI have the hener to invite the Department's\nattention to my telegram No. 273 of August 16, 3:00 p.m.,\nsent in response to the Department's tolegram No. 319 of August\n10,,7:00 p.m., 1944, on the subject of instructions to be\nissued by the Haitian Government to its Legation in Born, in re-\ngard (1) to persens naturalised abread under the Haitian law of\nMay 29, 1920, who were unable to comply with the Decree-Law of Feb-\nruary 4, 1942, requiring these persens to return to Huiti before\nAugust 5th of that year, and (2) to state that the Haitian Government\ndees not question the validity of decuments issued in its IMAINE to per-\nsens subject to enemy persecution until such persens reach places of\nsafety.\nAS I reported in my despatch No. 133 of August 2, 1944, the Hai-\ntian Government on July 29th issued statements supperting the Depart-\nment's request. The substance of these statements was ferwarded to\nthe Haitian Legation at Bern en July 31st with directions to inform\nthe Swime Federal authorities. The text of the telegram sent by the\nHaitian Fereign Office. A copy and translation of this message are\nenclesed herewith.\nIn respense to my inquiry as to whether the Council of Ministers\nhad approved these two statements, the Minister for Fereign Affairs\ninfermed me orally that this had net been dene, as President Lescet\nhimself had given the necessary directions, indicating thereby that\nhis authority was sufficient. I have no reason to deubt the socuracy\nof this infermation and suggest that it be se accepted by the\nDepartment.\nRespectfully yours,\nOrme Wilson\nEnclesures:\n1/ Cablegram sent by\n151317 (leverns\nJuly S1, 1944. Born,\n2/ Translation of No. 1 supra\nFile: 711\nOf : mak\nTo the Department in eriginal and hectegraph.\n55\nEnclosure No. 2 to Despatch No. 159 of August 16, 1944, from\nThe Embassy at Part-au-Prince.\nRegraded Unclassified\nTRANSLATION\nHAITIAN LEGATION BRN\nPlease request the Swins Federal Gevernment to\npresent to the German Gevermment the fellowing dec-\nlaration of the Haitian Government:\n\"In asmuch as a certain number of indivi-\nduals of the Jewish race naturalised as\nHaitians abread in pursuance of the. Decree-\nLaw of May 29, 1939,wore living in `terri-\nteries centralled by Cermany and Italy/\nthat they have been detained there om-\ntinususly for reasens' of ferce majeure\nsince the declaration of war by the Repub-\nlic of Haiti until this date, the Haitian\nGeverment declares: that the persons in\nthe abeve-mentiened categery have been up-\nable to comply with the Decree-Law of Feb-\nruary 4, 1942, enjeining, under penalty of\nthe less of Haitian nationality, all these\nwho had acquired Haitian naturalization\nabread to return to Haiti before August 5,\n1942. Consequently, it is hereby made\nknown to when it may cencern that the said\npersons are net affected by the Decree-I.rw\nof February 4, 1942\".\nI also ask you not to question at present the va-\nlidity of Haitian passports hold by persons who are\nnew in eccupied territeries and who could be the eb-\nject of persecution by the enemy until such persens\narrive in a place of safety and to inform the Fed-\neral Department of the instructions received by you\nin this connection.\nGERARD LESCOT\nOils mak\n56\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAmerican Embassy, Port au Prince\nTO:\nSecretary of State, Washington.\nDATED:\nAugust 16, 1944\nNUMBER: 273\nCONFIDENTIAL\nThe instructions mentioned in Department's cable of August\n10, no. 319, were transmitted by the Haitian Government on July 31\nto Bern. We are forwarding text by airmail. It is stated by the\nForeign Office that this action was taken with the President's\napproval of the Council of Ministers was not secured. I have no\nreason to doubt that sufficient authority is constituted therein.\nWILSON\nRegraded Unclassified\n57\nCH\nDistribution of\nSECRET \"W\"\ntrue reading only by\nspecial arrangement.\n(SECRET W)\nAugust 16, 1944\n5 p.m.\nAMPOLAD,\nCASERTA (ITALY).\n39\nThe following for Ackermann is WRB 44.\nMcClelland, the War Refugee Board representative in\nBern, suggests that plans for the assistance of refugees\nin German-occupied Italy would be facilitated if the\nBoard were to express to appropriate Italian officials\nin Rome its approval of and interest in any rescue\noperations on behalf of Jewish refugees in German-occupied\nItaly which might be undertaken by the Italian resistance\nmovement insofar as such operations are consistent with\nthe satisfactory carrying out of the regular military\nprogram.\n0\nIf there is no objection from competent Allied mili-\ntary authorities, please take this matter up with the\nappropriate Italian officials in Rome, and report to the\nBoard the action taken.\nHULL\n(GLW)\nWRB:MMV:KG\nSE\nWE\nS/CR\n8/16/44\nRegraded Unclassified\n58\nCABLE FROM WAR REFUGEE BOARD TO ACKERMANN, AMERICAN CONSULATE GENERAL,\nNAPLES, ITALY.\nMcClelland, the War Refugee Board representative in Bern, suggests\nthat plans for the assistance of refugees in German-occupied Italy\nwould be facilitated if the Board were to express to appropriate Italian\nofficials in Rome its approval of and interest in any rescue operations\non behalf of Jewish refugees in German-occupied Italy which might be\nundertaken by the Italian resistance movement insofar as such operations\nare consistent with the satisfactory carrying out of the regular\nmilitary program.\nIf there is no objection from competent Allied military authorities,\nplease take this matter up with the appropriate Italian officials in Romels\nand report to the Board the action taken.\nTHIS IS WRB CABLE NO. 44\n10:00 a.m.\nAugust 16, 1944\nMJMarks:JQPehlesdg 8/15/44\nRegraded Unclassified\n59\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nThe American Delegation, Rome\nTO:\nThe Secretary of State, Washington\nDATE:\nAugust 16, 1944\nNUMBER:\n194\nCONFIDENTIAL\nReference is made herewith to the Department's\nAugust 4 cable No. 36.\nGiven below is the substance of Sforza's reply to\nMertenke of the Emergency Committee to save Europe's\nJewish People:\nIt pleases me to know that the contribution which\nI made to the first conference to save Jews is not for-\ngotten. This time I am happy to send facts to you instead\nof plans and wishes. Here are the facts: Not only has\nmy friend, Prime Minister Bonomi, abolished all of the\nanti-Jewish laws but in addition together we have\nwarmly recommended to all Italians that they show their\nJewish compatriots how hateful and despicable they consider\ndiscriminations of religious and racial nature to be.\nKIRK\nDCR:EBH 8/19/44\nRegraded Unclassified\n60\nBR-313\nPLAIN\nCasablanca\nDated August 16, 1944\nRec'd 8:20 a.m., 19th\nSecretary of State\nWashington\n228, Sixteenth\nCROWLEY AND LEHMAN FROM UNRRA\nNumber 7.\n150 additional refugees arrived today.\nRUSSELL\nCSB\nRegraded Unclassified\n61\nCABLE TO THE AMERICAN CONSULATE GENERAL, JERUSALEM, FROM WAR REFUGEE\nBOARD\nPlease deliver the following message to Heshel Frunkin--\nGoldie Myerson, 115 Allenby, Tel-Aviv, Palestine, from Israel Mereminski:\n\"Confidential yours July 29 discussed fully WRB who submitting\nfirst part your important war information competent authorities.\nSuggest your end negotiate directly appropriate Polish groups\nsimultaneously destruction gaschambers, crematories, etc.\nCable details amount necessary and manner transmission rescue thou-\nsands mentioned LVOV letter. WRB dealing energetically four Redcross\npoints. No indications here that Hungarian deportation not stopped.\nWRB doing everything possible deal with Hungarian situation includ-\ning question children. American Jewish organizations constantly\nactivizing Hungarian Jews here lines similar your suggestions STOP\nContacting various organizations concerning Polish Government broad-\ncasts from here appealing Poles save Jews last amoment and provide\nPolish Embassy here with lists Poles active resoue work demanded\nby American public opinion Stop Believe it will work. All concerned\ninterested you provide me immediately information plans detailed\nsuggestions for immediately increasing number small boats possible\nmobilize Palestine neighboring countries islands etc. All ready\nhelp this most vital urgent problem cable same way without delay.\"\n10:00 a.m.\nAugust 16, 1944\nFHodeldjth 8/14/44\nRegraded Unclassified\n62\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAmerican Consulate General, Jerusalem\nTO:\nSecretary of State, Washington\nDATE:\nAugust 16, 1944\nNUMBER: 115\nSECRET\nThe message given below is for WRB for the attention\nof Leon Kubowitski, World Jewish Congress, from Mrs.\nGertrude Van Tyn:\nThis is to advise you that by the end of August\nall the information which I have will be in the hands\nof the joint distribution committee in New York. I\nsuggest that JDC be consulted concerning all these\nquestions in light of the great care that must be taken\nas to how such information is used. The wrong kind of\npublicity might have very serious consequenses for Jews\nwho are still in Belsenberg.\nThe foregoing refers to the August 2 cable No. 132\nfrom the Department.\nPINKERTON\nDCR:EBH 8/19/44\nRegraded Unclassified\n63\nNO. 1327\nTHE FOREIGN SERVICE\nOF THE\nUNITED STATES OF AMERICA\nRESTRICTED\nAMERICAN CONSULATE GENERAL\nJerusalem. Palestine,\nAugust 16. 1944.\nSUBJECT: Information Regarding Belsen-Bergen\nConcentration Camp.\nTHE HONORABLE\nTHE SECRETARY OF STATE,\nWASHINGTON.\nSIR:\nI have the honor to refer to the Department's\ntelegram No. 132 of August 2. 7 P.M., quoting a\nmessage from Mr. Leen KUBOWIT2KI of the World Jewish\nCongress through the Var Refuges Beard for Mrs.\nGertrude TAB Tyn and Mr. Jacob van BLITZ asking for\ndetails of Belsen-Bergen Camp. My telegram No. 113\nof August 14, 6 P.M. gave Mr. van Blits' reply. Mrs.\nvan Tyn gave her information to Mr. Harry VITNLES\nwho is preceeding to the United States on business\nfor the American Jewish Joint Distribution Committee\nof New York. She asked me to telegraph suggesting\nthat Mr. Kubovitaki should consult the Joint Distri-\nbutien Committee for information on his questions\nbecause of the great care that has to be taken in\nuse of such material. This was done in my tolegram\nNo. 116 of August 16. 3 P.M.\nI have new received from Mr. Viteles a copy of\nMres vas Tyn's repert sad, as it may be of interest\nto the Department and to the War Refugee Board, a\ncopy is enclosed.\nRespectfully yours,\nL.C. Pinkerton,\nAmerican Censul General.\nMaclesure:\nCopy of Report.\nFile Be. 849\nLCP/Z oh\nRegraded Unclassified\n64\nEmclesure to Despatch No. 1327, dated August 16, 1944,\nRegraded Unclassified\nfrom the American Consulate General, Jerusalem, Palestine,\non the subject: \"Information Regarding Belsen-Bergen\nConcentration Camp.\"\nCOPY\nInformation regarding Bergen-Balsen on June 28, 1944.\nIn Bergen-Belsen were three Jewish camps; the se-\ncalled \"Albala-Lager\" where I had been interned, the\n\"Schneebaum-Lager\", and the Barack 10 complex. (The\ncamp;) Barack 10 was not always in use; 1% eften served\nas quarantine, and I was there first for 4 vecks after\nour arrival and then again for about 5 weeks when the\nPalestine candidates were segregated from the ethers;\nwhen we left there were about 300 to 400 Jews in Barack\n10. but I have no reliable information about them. In\nthe Schoobaun-Lager were about 1000 Jews, nestly Polos\nwith either South-American passports, and possibly and/\nor Palestine papers. This information is not reliable.\nAt the above date there were certainly about 250 Jews\nwho had arrived from Yugeslavia and who held other\npapers; they were in a very bad condition. All the\ndata given below refer to the \"Albala-Cawp\" only.\nInmates with Dateh nationality\n1380\nStateles\n1320\nDeuble nationality (Dutch/Maglish)\n600\nParaguay\n180\nMaglish\n270\nEquador\n150\nHeadures\n80\nMaiti, San Salvador. Pers, etc\n50\n4030\nplus 70 Greeks\nAbout 1200 of these hold Palestine Papers: there vas\na small group whose Arian descent had not been defi-\nnitely cotablished, a greep who hold the se-called\n120.000 stamp (either bought or given because of good\ninternational relations) people commented with the\ndiamond industry (about 170 insl. venes and children).\nThe 270 \"Muglish\" were Jews from North-Africa, who had\nbeen interned in Italy and who had nov been evacuated\nto B. 3.; all these are, of course, included in the\nabove natiomality-statistios, and are not additional.\nThe lists saked for cannot be given; I could, of\ncourse, name a number of people who dies is B.B. but\nthe information would be incomulate, and would serve\n65\nno useful purpose; the nortality particularly amenget\nold people was high.\nThe feed was not badly cooked. although very mose-\ntensus. From January till about the ond of April the\nwar meal consisted every day of \"Kehlrusben-soup\".\nAfter that it was about twice weekly spinach-soup:\nsometimes thick gruel; semetimes other vegatable-sump,\nalways with very little or no neat. Practically no fat.\nThe rations were daily:\n350 granns bread of deubtful quality\nit liter soup midday meal daily (in reality\nsae get about 1 1/10th)\nweekly 60 grame margarine; about twice = week\nat night this gruel soup; a soupspeenful of jam,\nquark or herring-salade 42 the days when\nthere was no soup in the ovening.\nThere was a deficiency of about 1000 caleries daily:\nthis vas particularly serious because of the leng\nworking days and the very heavy work which particularly\nthe younger mea had to perform. (About 1000 people\nworked in the \"shees\" non and wases; 1.0. they had to\ntura old shees into their original leather or textile\nsubstance; but the non had also to lead and unlead the\nincoming freightears with these shees; there was a great\ndeal of brutality; but although beatings ware the rule\nof the day there was - with cae single exception - no\nill-treatment which resulted in injury. About another\n1000 people worked is the textile-industry the rest had\nse-called is or around the camp;\nthis was eften very heavy work; felling of trees; clean-\ning of latrines; cleaning of the charp generally ets. etc.\nThe samitary situation was bad; the latrines used by\nthe \"shee\" sad textile-werkers indescribable M to do-\nsign and condition. Dysentery was raspent. The\nhespital-arrangements were very peer; there were prac-\ntically no drugs or medicines left, sad only in very\nfew cases 414 the Germans supply such things as dagesan\nfor serious cases of pneumenia etc. etc. For some\nmonths there were private stores available, but these\nhad been exhausted. As drugs etc. were confiscated from\nprivate parsols there is 20 nease of helping unless the\nRed Cress would get permission to supply the mest necessary\ndrugs. Se far neither delegates from the Inter-\nnational or the German Red Cross had been visiting the\nRegraded Unclassified\n66\ncamp. No cellective feed or other parcels can be TO-\ncoived; only a reasonably quantity of individually as\ndressed small parcels, sent as ordinary pareel (neither\nregistered nor express nor with enclosed receipt-ferm)\nwill probably be delivered. I personally used to re-\nceive such a pareel from Amsterdan regularly sace a\nweek; but as the German neither have (nor are probably\nvilling to create) facilities for handling a large me-\nber of parcels there is a danger that the receiving of\nparcels may be althgether suspended if too ssay are\nsent simultaneously. (A pareel should centain marga-\nrine, cheese, hard biscuits, checelate, quaker eats,\nvitamines in tablet form and cigarettes). The latter\ncan be exchanged abainst bread and every conceivable\narticle. Also milk-pewder, and tin of sardines.)\nCerrect address: Aufenthaltslager Bergen-Belsen\nnear Celle (Hannever)\nThere vas an eld-age home for people above 65\nwho did net need to work, and also an invalid home\nwhere people who had been seriously ill or who were\npermanently disabled stayed without working. Admin-\nsion to hespital, invalid or old-age home was diffi-\ncult, sad often people with high temperatures had to\nwork.\nAs far as I knew no deportations to Peland teek\nplace from Bergen-Belsen; small groups of Jews (f.1.\nsuddenly a group of about 20 Hungarian Jews) were\nsometimes sent away with unknova destination, possibly\nPeland. Groups of Jown holding Spenish, Ruglish, Tur-\nkish papers ete. had been sent away. it was believed\neither repatriated or to Vitelles or Laufen (both\nInternierungelager under Red Cress auspices). About\n350 Jews who had been sent to B.B. from Vesterberk\n(instend of to their destination Theresianstad) in\nSeptember 43 were eventually sent to Theresienstad\nfrom B.B. beginning of February 1944; news from some\nof them had been received to the effect that they had\narrived there. (This included old Pref. Magnus, Dr.\nFlatow and his wife). Our first exchange transport\nconsisted 221 Jaws from B.B. (99 Dateh, 77 stateless\nfernerly Germans, 45 sundry nationalities); to these\nwere added 60 Jews from Vitelles.\nRegraded Unclassified\n67\nSundry Information. In Westerbork were at the\nbeginning of June 1944 still about 2000 people, 1.0.\n700 \"Barneveld\" (a group privileged by Dutch autheri-\nties) about 350 baptised Jews (non Cathelics) and\nabout 1000 with special privileges, either resulting\nfrom their work for Westerberk or special se-called\n\"emigration-greups\". There may have been as many as\n2500 altogether they were supposed to eventually \"\nto Theresienstad; I de not knew whether or net W'berk\nhas since been liquidated.\nFrom the 2500 holder of Palestine Certificates\non March 16th 1944 550 were then in Bergen-Belsen;\n710 had been sent to Peland mest prier to their\nreceiving certificates; 675 were in hiding. and the\nrest belonged to \"Barnevald\" or was otherwise still\nin Wherk or Ansterdam. (Since then more are in B.B.\nand less in wobork)\n(sga) Gertrude van Tym\nHaifa - August 12, 1944.\nRegraded Unclassified\n68\n- 4 -\nInformation about Dates Jevry\nRegraded\nThere vere 140,000 Jews in Helland at the begin-\nning of the war. (incl. 26,000 nen-Dutch Jews).\nDeported to Peland (including all erphanages, old-age\nhomes. hospitals. lunatic-asylum\nApeldeers, and all Jeve from the\nFught-camp excepting a few working\nin Fught for Philips)\n110,000\nBergen-Belsen\n4,000\nWesterberk\n2,500\nTheresienstad\n2,000\nIn biding (estimated)\n(between 15-17000)\n15,000\nMarried to Christians etc. (estinuted) deceased\n6,500\n140,000\n-----\n(The number of Jews who are free in Amsterdam-there\nare none in the Provinces-is negligible)\nThe \"star\" of which I enclose one, had to be were\nas from May 1942; the deportations started July 15th,\n1942. Up to Recember 31st 1942 40,000 Jews had been\ndeported.\nWIHRINGEN: ON March 20th 1941 210 pupils (boys and\ngirls with the Jewish manager) were brought to Ansterdam;\nabout 60 pupils and 10 people from the staff were allowed\nto remain in order to finish the harvesting of that year's\ncrops; they were allowed to remain until August let 1941\nwhen the Workderp was finally liquidated.\nAbout 60 of the pupils were sent to Mauthason:\n#\n100 were deported to Poland\n#\n50 are still in Westerbork and\nBergen-Belson\n#\n60 are in hiding.\nThe Dutch authorities paid an indemnity for the\nproperty they took over; (although it were the Germans\nwho ordered the liquidation;) this money was used to\n69\n+\nkeep two \"Hemes\" in Amsterdam for the remaining pupils\nuntil they too were finally dispersed in the great\nrassias on May 26th and June 20th 1943. The equipment\nof the carpentershop and the smithy and metalshop was\nused in Jewish training schools in Amsterdam, and\nfinally brought to Westerberk.\nVININA.\nThe fellowing data were given to no in Vienna ea\nmy way through to Constantineple by the assistance of\nDr. Leewenhers who sould not come personally.\ndate July 1st 1944: VIENNA Free Jews\n180\nIn hiding\n2000\n\"Versippts\" (inter-\nmarriage etc.)\n698000\nSent to Theresienstad\n1500 (of when\n3800 still\nthere)\nSent to Peland\n4800\nThe rest (there were in 1938 210,000) emigrated, or died.\n9000 Hungarian Jews had come through Vienna on\ntheir way to Peland; 41000 were still expected. (We\nsav two transport of 1000 each, one in Vienna and on\nthe way in Hungary) 310,000 Jews in Budapest had not\nyet been interfered with.\n(sgd) Certrude van Yya\nHaifa - August 13, 1944.\nRegraded Unclassified\n70\nCABLE TO NORWEB, LISBON, FOR DEXTER FROM WAR REFUGEE BOARD\nPlease deliver the following message to Dr. Joseph\nSchwartz, 242 Rua Aurea, Lisbon, from Mr. Leavitt of the\nAmerican Jewish Joint Distribution Committee:\n\"Remitted $25,000 Saly Mayer for Shanghai.\" If\nTHIS IS WRB CABLE TO LISBON NO. 77\n4:30 p.m.\nAugust 16, 1944\nFHodel:jth\n8/16/44\nRegraded Unclassified\n71\nAIRGRAM\nCONFIDENTIAL\nFROM: American Embassy,\nMadrid, Spain\nDATE: August 16, 1944\nREC'D: August 29, 1944\nSecretary of State,\nWashington, D. C.\nA-387, August 16, 1944, 4 p.m.\n4 group of 410 French refugees departed from\nSpain for North Africa via Gibraltar on August 14,\nbringing to approximately 2,400 the total number\nof such refugees evacuated from Spain since begin-\nning of year. It is estimated that not more than\n200 French refugees remain in Spain as of this\ndate.\nBUTTEN.ORTH\nCopies to Algiers.\nM/B/jk\nFile No. 905\nMiss Chauncey (for the Sec'y), Abrahamson, Akzin, Cohn, DuBois,\nDrury, Friedman, Gaston, Hodel, Laughlin, Lesser, Mannon, Marks,\nMcCormack, Pehle, Sargoy, Standish, Weinstein, Cable Control Files\nRegraded Unclassified\n72\nATRORAM\nFROM: American Embassy,\nMadrid, Spain.\nCONFIDENTIAL\nDate: August 16, 1944.\nRec'd: August 29, 3 p.m.\nSecretary of State,\nWashington, D. C.\nA-388, August 16, 1944, 4 p.m.\nReference Department's telegram 2185, August 5,\n5 p.m. from War Refuges Board.\nTotal part charges insurred in connection with\nembarkation of stateless refugees at Cadis on June 21\namounted to only 4,075.70 pasetas, which amount USCC\nhas been requested to pay to consignee. No other\nfunds have been advanced from original 100,000 pasetas\nauthorised in the Department's telegram 1652 (USCCO\n1941), June 7, 1 P. m.\nBUTTERWORTH\nCopy for Algiers for Saxon\nCopy for USCC, Madrid.\nMIA/Jk\nRegraded Unclassified\n73\nCABLE FROM WAR REFUGEE BOARD TO MENISTER JOHNSON, STOCKHOLM, SWEDEN.\nPlease refer to your 2688 of July 20 doncerning BARDALAND\nclaim.\nThe executive Director, War Refugee Board, has discussed this\nmatter with Swedish Minister here who is communicating with Swedish\nGovernment for more information. Will advise you of developments.\nTHIS IS WRB CABLE TO STOCKHOLM No. 74\n9:00 a.m.\nAugust 16, 1944\nJWPehle:dg 8/15/44\nRegraded Unclassified\n74\nBAS\nAugust 16, 1944\nDistribution of true\nreading only by special\n4 p.m.\narrangement. (SECRET W)\nAMLEGATION\nStockholm\n1633\nThe cable below is WRB 74.\nPlease refer to your 2688 of July 20 concerning\nBARDALAND claim.\nThe executive Director, War Refugee Board, has\ndiscussed this matter with Swedish Minister here who\nis communicating with Swedish Government for more\ninformation. Will advise you of developments.\nHULL\n(GLW)\nWRB:MMV:KG\nSzCR\nNOE\n8/16/44\nRegraded Unclassified\n75\nCABLE TO MINISTER JOHNSON AND OLSEN, STOCKHOLM, SWEDEN\nPlease transmit the following message to Wilhelm Wolbe, 11 Olefagotten,\nStockholm, Sweden,\nQUOTE Reported 7000 Lithuanian Jews evacuated from Kaunas to East\nPrussian border for slave labor fearful extermination will follow. We\nready meet every obligation effect their rescue. Please utilize every\nappropriate method available save maximum possible number.\nGroup of 1200 including Rabbis religious leaders evacuated from Hungary\nthrough Slovakia now reported in concentration camp at Belsen Bergen near\nHanover. Danger imminent deportation to death camps. Doing everything to\neffect their rescue. Vital you immediately (1) request Swedish government\nto grant Swedish passports or visas to save this group or (2) intervene\nwedish Government and King direct immediate appeal to Admiral Horthy to\ndemand repabriation of these 1200. If repatriation is granted, request\nthat their transportation to Hungary be accomplished in condidtions insuring\nsurvival and that on their trip they be accompanied by representative of\nIntercross, Swedish Redcross or Hungarian Redcross to insure such conditions.\nAlso that upon return to Hungary, they be treated under terms of relaxed\nregime pending emigration. Enlistreooperation of Olsen and Rabbi Ehrenpreis.\nThe lives of this group dependent on your action. Vaad Hahatzala Emergency\nCommittee. UNQUOTE\nTHE FOLLOWING FROM WRB FOR OLSEN.\nIf you deem it advisable, you may actively support the above requests\nto Swedish authorities.\nTHIS IS WRB CABLE TO STOCKHOLM NO. 75\n1:40 p.m.\nAugust 16, 1944\nBAkzin:ml 8/15/44\nRegraded Unclassified\n76\nCABLE TO MINISTER HARRISON AT BERN FOR McCLELLAND FROM WAR REFUGEE BOARD\nReference your 5004 of August 4, and Department's 2631 of July 31,\nWRB's 104.\nTimes article based on formal news release issued by Belgian War\nRelief Society as result of confusion. Release states clearly Krier and\nClement are in Bern. Article indicates Krier in Bern, but is not (repeat\nnot) clear as to Clement. It reports, howefer, that the $90,000 is to be\nsent to Bern QUOTE to aid Belgians in hiding from the Gestapo or imprisoned\nby the Nazis UNQUOTE.\nTHIS IS WRB BERN CABLE NO. 124\n10:00 a.m.\nAugust 16, 1944\nLSLesser:tmh 8/15/44\nUnclassified\n77\nORIGINAL TEXT OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmerican Legation, Bern\nDATED:\nAugust 16, 1944\nNUMBER:\n2816\nCONFIDENTIAL\nReference your 5004 of August 4, and Department's\n2631 of July 31, WRB'S 104.\nTimes article based on formal news release issued by\nBelgian War Relief Society as result of confusion. Release\nstates clearly Krier and Clement are in Bern. Article\nindicates Krier in Bern, but is not clear as to Clement.\nIt reports, however, that the $90,000 is to be sent to Bern\nQUOTE to aid Belgians in hiding from Gestapo or imprisoned\nby the Nazis\nUNQUOTE\nTHIS IS WRB BERN CABLE NO. 124\nRegraded Unclassified\n78\nCABLE FROM WAR REFUGEE BOARD TO MINISTER HARRISON FOR MCCLELLAND,\nBERN, SWITZERLAND.\nWe are requesting Ackermann, the War Refugee Board representative\nin Italy to take up with the appropriate Italian officials in Rome\nthe matter referred to in your 5079 of August 7.\nTHIS IS WRB BERN CABLE NO. 125\n10:00 a.m.\nAugust 16, 1944\nMJMarks:ro\n8/11/44\nRegraded Unclassified\n79\nORIGINAL TEXT OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmerican Legation, Bern\nDATED:\nAugust 16, 1944\nNUMBER: 2817\nFOLLOWING FOR McCLELLAND:\nWe are requesting Ackermann, the War Refugee Board\nrepresentative in Italy to take up with the appropriate\nItalian officials in Rome the matter referred to in your\n5079 of August 7.\nTHIS IS WRB BERN CABLE NO. 125\nRegraded Unclassified\n80\nCABLE TO MINISTER HARRISON AND McCLELLAND, BERN, SWITZERLAND\nPlease transmit the following message to International Red Cross at\nGeneva, Switzerlands\nQUOTE Jewish telegraphic agency reports from Bern that according reliable\nletters from Hungary last days of July deportations are continuing at night\nin spite of Horthy's promises. Jewish circles here in great anxiety. Please\nascertain facts. Agudas Israel World Organization, Jacob Rosenheim, President,\nUNQUOTE\nTHIS IS WRB CABLE TO BERN NO. 126\n10:35 a.m.\nAugust 16, 1944\nBAksin:ml 8/16/44\nRegraded Unclassified\n81\nCABLE TO MINISTER HARRISON AND McCLELLAND, bern, SWITZERLAND.\nReference is made to Department's 2737 of August 9, WRB 112.\nDepartment and Board received communciation from IGC substan-\ntiating reports of deportations of holders of Latin American docu-\nments from Civilian internment camps subsequent to May 11, with full\ndetails and lists of names. Deportations occured in Vittel on\nMay 16 and about July 18. The camp commandant informed internees\nthat transport was to be sent to Belsen-Bergen, which proved false.\nThe Commandant also stated that neither the recognition of Latin\nAmerican documents nor the certificate for exchange to Palestine\nwould have any validity in th e eyes of the German authorities\nunless an exchange either to Palestine or to South America actually\ntook place.\nPlease request Swiss Government to transmit to German Foreign\nOffice this Government's sharpest protest against this flagrant\nviolation of assurances given by Germany to Switzerland and referred\nto in your 4223 of July 3. Also request Swiss Government to demand\non our behalf immediate return of all deportees to civilian internment\ncamps and the most binding assurances that such deportations will\nnot occur again. Also request Swiss Government to declare to German\nForeign Office that any deportees not so returned will be considered\nby this Government as having been put to death by action of German\nauthorities contrary to obligation assumed by Germany and referred to\nin your 4223.\nIt is hoped that Swiss Government will not only transmit but\nalso support the above protests and demands.\nIn this connection, please make fullest use of argument con-\ntained in Department's 2490 of July 21, paragraph 3.\nCopy of IGC communication follows by diplomatic mail, but\nprotest is to be made immediately without awaiting said copy.\nTHIS IS WRB's BERN CABLE NO. 127.\nRepeat to Amembassy, London.\n1:40 p.m.\nAugust 16, 1944\nBAkzin:ml 8/15/44\nRegraded Unclassified\n82\nCABLE TO MINISTER HARRISON AND MoCLELLAND, BERN, SWITZERLAND.\nPlease transmit the following message to Isaao Sternbuch, St. Gallen,\nSwitserlands\nQUOTE Reported 7000 Lithuanian Jews evacuated from Kaunas to East Prussian\nborder for slave labor fearful extermination will follow. We ready meet every\nobligation effect their rescue utilise every appropriate method available save\nmaximum possible number. Contact Intercross urge them send representative\nintervene for group.\nConcerning 1200 endeavoring secure Palestine certificates for them. Urge\nyou do likewise. Necessary also you request Intercross and Swies Government\nto address appeal to Admiral Horthy to demand repatriation of this group. It\nis hoped that their transportation to Hungary would be accomplished in condi-\ntions insuring survival and that on their trip they would be accompanied by\nrepresentative of Intercross or Hungarian Redoross to insure such conditions.\nAlso, that upon return to Hungary, they would be treated under terms of re-\nlaxed regime pending emigration. Have cabled Wolbe Stockholm to make similar\nrequest of Swedish Government. Vaad Hahatzala Emergency Committee. UNQUOTE\nThe following from WRB for MoClelland:\nPlease actively support the above requests to Swies authorities\nand Intercross. Report developments.\nTHIS IS WRB CABLE TO BERN NO. 128\n1:40 p.m.\nAugust 16, 1944\nBAksinsml 8/14/44\nRegraded Unclassified\n83\nORIGINAL TEXT OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmerican Legation, Bern\nDATED:\nAugust 16, 1944\nNUMBER:\n1955\nSECRET\nFROM THE WAR REFUGEE BOARD.\nIn view of increasing difficulties in arranging for the\nevacuation of Jews from the Balkans by rail and sea and in view\nof the increasingly favorable war outlook, the War Refugee\nBoard feels that greater emphasis should now be placed on con-\nvincing the satellites that it is to their interest to nait\nanti-Jewish activities and thereby make unnecessary the evac-\nuation of Jews under present difficult and dangerous wartime\nconditions. With this in mind Hirschmann, the War Refugee\nBoard representative in Turkey recently conferred with\nBalabanoff, the Bulgarian Minister to Ankara, and requested\namong other things, that the Bulgarian authorities take steps\ncease persecution of the Jews in Bulgaria and to afford them\nprotection in that country thus obviating the necessity of in-\nvoluntary emigration. Balabanoff indicated his view that the\nBulgarian authorities would be favorably disposed to taking such\naction.\nIn his conversation with Hirschmann, Balabanoff appa-\nrently indicated that the Bulgarian Government is on excellent\nterms with the Soviet Govenment and that Bulgaria would exert\nany reasonable effort to please the Soviets. If in your dis-\ncretion you consider it desirable to do so, you may wish to\napproach the appropriate Soviet officials, informing them of\nthe foregoing, and suggesting that they may wish to instruct\ntheir Charge d'Affaires in Bulgaria to urge the Bulgarians\nto take action of the nature indicated.\nFor your information, the Russian Embassy in Ankara\nhas been advised of Hirschmann's talk with Balabanoff.\nHULL\nRegraded Unclassified\n84\nCABLE FROM WAR REFUGEE BOARD TO KELLEY FOR HIRSCHMANN, ANKARA, TURKEY.\nPlease refer your No. 1423 of August 4 (Ankara No. 114) and 1449\nof August 8.\nThank you for full report concerning Jabotinsky proposal. As\npreviously indicated we rely entirely on your judgment concerning proposals\nsubmitted by private organizations. Your cable is further indication\nthat you are giving full and impartial consideration to all proposals\nsubmitted regardless of organization involved. This is in line with Board's\npolicy. Substance of your message has been communicated to the Emergency\nCommittee here.\nTHIS IS WRB ANKARA CABLE NO. 100\n9:00 a.m.\nAugust 16, 1944\nJBFriedman:ro\n8/15/44\nRegraded Unclassified\n85\nCH\nDistribution of\nSECRET \"W\"\ntrue reading only by\nspecial arrangement.\nAugust 16, 1944\n(SECRET -W)\n8 p.m.\nAMEMBASSY,\nANKARA.\n708\nThe following for Hirschmann is WRB 100.\nPlease refer your No. 1423 of August 4 (Ankara No. 114)\nand 1449 of August 8.\nThank you for full report concerning Jabotinsky pro-\nposal. As previously indicated we rely entirely on your\njudgment concerning proposals submitted by private organiza-\ntions. Your cable is further indication that you are\ngiving full and impartial consideration to all proposals\nsubmitted regardless of organization involved. This is\nin line with Board's policy. Substance of your message\nhas been communicated to the Emergency Committee here.\nHULL\n(GLW)\nWRB:MMV:KG\nNE\nS/CR\n8/16/44\n86\nCABLE FROM WAR REFUGEE BOARD TO KELLEY FOR HIRSCHMANN, ANKARA, TURKEY.\nRegraded Unclassified\nPlease refer to your No. 1450 of August 8 (Ankara No. 125).\nThe following cable has been sent to Harriman in this connection:\nQUOTE In view of increasing difficulties in arranging for the\nevacuation of Jews from the Balkams by rail and sea and in view of the\nincreasingly favorable war outlook, the War Refugee Board feels that\ngreater emphasis should now be placed on convincing the satellites that\nit is to their interest to ahalt anti-Jewish activities and thereby make\nunnecessary the evacuation of Jews under present difficult and dangerous\nwartime conditions. With this in mind Hirsohmann, the War Refugee Board\nrepresentative in Turkey recently conferred with Balabanoff, the\nBulgarian Minister to Ankara, and requested, among other things, that\nthe Bulgarian authorities take steps to cease persectuion of the Jews\nin Bulgaria and to afford them protection in that country this obviating\nthe necessity of involuntary emigration. Balabanoff indicated his view\nthat the Bulgarian authorities would be favorably disposed to taking\nsuch action.\nIn his conversation with Hirschmann, Balabanoff apparently indicated\nthat the Bulgarian Government is on excellent terms with the Soviet\nGovernment and that Bulgaria would exert any reasonable effort to please\nthe Soviets. If in your discretion you consider it desirable to do so,\nyou may wish to approach the appropriate Soviet officials, informing them\nof the foregoing, and suggesting that they may wish to instruct their\nCharge d'Affaires in Bulgaria to urge the Bulgarians to take action of the\nnautre indicated.\nFor your information, the Russian Embassy in Ankara has been advised\nof Hirschmann's talk with Balabanoff. UNQUOTE\nTHIS IS WRB ANKARA CABLE NO. 101\n10:00 a.m.\nAugust 16, 1944\nJBFriedman:MJMarke:ro\n8/15/44\n87\nCH\nDistribution of\ntrue reading only by\nSECRET \"W\"\nspecial arrangement.\n(SECRET -W)\nAugust 16, 1944\n9 p.m.\nAMEMBASSY,\nANKARA.\n709\nThe War Refugee Board cable 101 below is for Hirschmann.\nThe following cable has been sent to Harriman in this\nconnection:\nQUOTE In view of increasing difficulties in arranging\nfor the evacuation of Jews from the Balkans by rail and sea\nand in view of the increasingly favorable war outlook, the War\nRefugee Board feels that greater emphasis should now be placed\non convincing the satellites that it is to their interest to\nhalt anti-Jewish activities and thereby make unnecessary the\nevacuation of Jews under present difficult and dangerous war-\ntime conditions. With this in mind Hirschmann, the War Refugee\nBoard representative in Turkey recently conferred with Balabanoff,\nthe Bulgarian Minister to Ankara, and requested, among other\nthings, that the Bulgarian authorities take steps to cease\npersecution of the Jews in Bulgaria and to afford them pro-\ntection in that country thus obviating the necessity of involun-\ntary emigration. Balabanoff indicated his view that the\nBulgarian authorities would be favorably disposed to taking such\naction.\nIn his conversation with Hirschmann, Balabanoff apparently\nindicated that the Bulgarian Government is on excellent terms with\nthe Soviet Government and that Bulgaria would exert any reasonable\neffort to please the Soviets. If in your discretion you consider\nit desirable to do so, you may wish to approach the appropriate\nSoviet officials, informing them of the foregoing, and suggesting\nthat they may wish to instruct their Charge d'Affaires in Bulgaria\nto urge the Bulgarians to take action of the nature indicated.\nFor your information, the Russian Embassy in Ankara has\nbeen advised of Hirschmann's talk with Balabanoff. UNQUOTE\nHULL\n(GLW)\nWRB:MMV:KG\nNE\nSE\nEE\nS/CR\n8/16/44\nRegraded Unclassified\n88\nCORRECTION ON\nORIGINAL TEXT OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmerican Embassy, Moscow\nDATED:\nAugust 16, 1944\nNUMBER:\n1955\nSECRET\nThe telegram No. 1955 was erroneously distributed to\nyou as No. 1955 from \"American Legation, Bern\". It should\nhave been No. 1955 from \"American Embassy, Moscow\".\nRegraded Unclassified\n89\nCABLE FROM THE WAR REFUGEE BOARD TO AMBASSADOR HARRIMAN, MOSCOW, RUSSIA.\nIn view of increasing difficulties in arranging for the evacuation\nof Jews from the Balkans by rail and sea and in view of the increasingly\nfavorable war outlook, the War Refugee Board feels that greater emphasis\nshould now be placed on convincing the satellites that it is to their\ninterest to halt anti-Jewish activities and thereby make unnecessary\nthe evacuation of Jews under present difficult and dangerous wartime\nconditions. With this.in mind Hirschmann, the War Refugee Board repre-\nsentative in Turkey recently conferred with Balabanoff, the Bulgarian\nMinister to Ankara, and requested, among other things, that the Bulgarian\nauthorities take steps to cease persectuion of the Jews in Bulgaria and\nto affort them protection in that country thus obviating the necessity\nof involuntary emigration. Balabanoff indicated his view that the Bulgarian\nauthorities would be favorably disposed to taking such action.\nIn his conversation with Hirwohmann, Balabanoff apparently indicated\nthat the Bulgarian Government is on excellent terms with the Soviet\nGovernment and that Bulgaria would exert any reasonable effort to please\nthe Soviets. If in your disoretion you consider it desirable to do 80,\nyou may wish to approach the appropriate Soviet officials, informing them\nof the foregoing, and suggesting that they may wish to instruct their\nCharge d'Affaires in Bulgaria to urge the Bulgarians to take action of the\nnature indicated.\nFor your information, the Russian Embassy in Ankara has been advised\nof Hirschmann's talk with Balabanoff.\n10:00 a.m.\nAugust 16, 1944\nJBFriedman:MJMarks:ro\n8/15/44\nRegraded Unclassified\n90\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM: American Embassy, Moscow.\nTO:\nSecretary of State, Washington.\nDATEDs August 16, 1944\nNUMBER: 3004\nCONFIDENTIAL\nI am informed by the British Ambassador that he, on the thirteenth\nof August, wrote to Vyshinki along lines as follows, in accordance\nwith instructions received from his Government:\n\"The American and British Governments were informed on the twenty-\nsecond of July by the International Red Cross Committee that the de-\nportation of Jews to German execution camps was being stopped by the\nHungarian Government, and that that Government was willing to permit\nthe departure of Jews (in certain categories) from Hungary for neutral\nterritory or for the United States. This offer is believed by the\nAmerican and British Governments to be a genuine one, and they feel\nthat arrangements to take advantage of this development should be\nmade. At the present time under consideration with the American\nGovernment are the matter of a comunication to the International\nRed Cross; also a public statement on the subject.\"\nHARRIMAN.\nDCR:LCW 8/17/44\nMiss Chauncey (For the See'y), Abrahamson, Cohn, DuBois, Friedman,\nHodel, Laughlin, Lesser, Mann, Mannon, McCormack, Cable Control Files\nRegraded Unclassified\n91\nCOPY NO\nNOT TO BE RETRANSMITTED\nSECRET\nOPTEL No 267\nInformation received up to 10 A.M. 16th August 1944.\n1:\nSouthern France On morning 15th U.S. INfantry formations\nassaulted over beaches between AGAY\n(4 miles E. of 3. RAPHAEL) and BAIE DE CAVALAIRE (10 miles E. BORMES)\nAssaults were preceded by landings of British and U. 3. airborne\nforces as well as U.S. and French Commandos. ILE DE PORT-CROS\nand ILE DU LEVANT, 10 miles S. of BORMES , have been captured. All\nassault landings carried out to schedule and only slight opposition\nmet. Allied fleet and air forces covered landing and two small\nenemy vessels were sunk. Air opposition slight.\n2. NAVAL\nHome Waters 14th. A UK LSI (L) was sunk and a U.S. LST\nalso hit, probably by U-boat off HARTLAND POINT.\n15th, A LST in returning convoy was damaged by under water\nexplosion S.E. of ISLE OF WIGHT; half hour later a British Corvette\nprobably sunk U-boat same area.\n3, MILITARY\nN.W. France A large proportion of fighting troops of enemy\narmour and infantry formations are still West of\nFALAISE-ARGENTAN GAP but there are indications that elements,\nincluding services, have escaped to the East. The various\nidentifications obtained on different sectors indicate enemy units\nmuch mixed.\nU.S. troops are reported to have reached LA LOUPE, 22 miles\nW of CHARTRES.\nAdvances up to 5 miles have been made on second army front\nand VASSEY has been captured. Enemy still hold CONDE, Canadian\narmy have advanced on 31 mile front in area NE of FALAISE and\nare within 21 miles of the town.\n4. AIR\nWestern Front 15th. 1,832 British and U.S. Bombers attacked\n19 airfields in Low Countries and GERMANY\ndropping 7,121 tons with good results. AEAF medium and light bombers\ndropped 135 tons on roads and railways in PARIS and ROUEN areas,\nalso 123 tons on fuel dump in FORTE DE CHANTILLY. Fighters destroyed\nmany vehicles. Enemy casuatlies 28:5:9 in combat and 410:6 on ground\nfor loss of 18 heavy bombers, 1 medium bomber and 16 fighters\nmissing.\n15th/16th. 63 aircraft despatched without loss.\n32 attacked BERLIN.\nItaly and South France 14th. 771 medium bombers and fighter:\nattacked gun positions, bridges and radar installations in SOUTHERN\nFRANCE, and targets in battle area.\n15th. Fortresses and Liberators dropped 434 tons on targets\nin CANNES and TOULON areas and 323 tons on bridges over RHONE near\nVALENCE.\nGerman Activity During 24 hours ending 6 A.M. 16th\n99 flying bombs plotted.\nRegraded Unclassified\n92\nAugust 17, 1944\n12:00 p.m.\nGROUP\nPresent: Mr. C. S. Bell\nMr. D. W. Bell\nMr. Luxford\nMr. Haas\nMr. Blough\nMr. Sullivan\nMr. Gamble\nMrs. Klotz\nMr. Gaston\nMr. Pehle\nH.M.JR: Well, I have only seen one paper since I\nhave been gone. I see you froze some Argentine gold.\nMR. D.W. BELL: Well, I don't think we have frozen\nit, but refuse to let it go out. Apparently that came\nout of the State Department.\nMR. LUXFORD: State or FEA.\n(Mr. Gaston enters conference)\nMR. D.W. BELL: We didn't give anything out on it.\nH.M.JR: Don't they tell you anything?\nMR. LUXFORD: State? They are again raising with\nHull the freezing of Argentine.\nH.M.JR: Have they frozen it?\nMR. LUXFORD: They are recommending a freeze.\nH.M.JR: How does it get in the paper?\nMR. LUXFORD: That is just on the gold. According to\nCollado it came from the Argentine Embassy. The Argentine\nEmbassy reported it to the press, he says.\nRegraded Unclassified\n93\n-2-\n(Mr. Pehle enters conference)\nH.M.JR: What is the difference?\nMR. LUXFORD: We are just holding it up until we\ndecide whether he will freeze or not.\nH.M.JR: But the paper said we have frozen it.\nMR. LUXFORD: It amounts to the same thing. We\ntook it off the boats. It is laying down in New Orleans\nuntil it is decided whether they will freeze.\nMR. D.W. BELL: We are kind of holding it back,\naren't we, on the gold?\nMR. LUXFORD: To this extent. They are holding up\non sending down further boats with gold. We asked them\nwhat they wanted to do on this gold. They said, \"We are\nconsidering a freeze and we don't know yet.\" We said,\n\"What shall we do?\" They said, \"Whatever you want to.\nWe are not going to object.\" So we took that as permission\nto hold it until they made up their mind.\nH.M.JR: Before we get into too many details, you\nmight like to know a little bit about the trip. I got\nover there at midnight Sunday. I was on the train twenty\nminutes later in Scotland. Eisenhower had a train up\nthere for us. We got down to the Southern part of England\nwhere his headquarters were about noon and then we had\nlunch with him. And we started right in with General\nEisenhower to find out where he stood on this business\nof how he is going to treat Germany when he first gets\nin. He was very positive that he was going to treat\nthem rough. He was perfectly willing to let them stew\nin their own juice at the beginning, which is quite\ncontrary to the plans of G5, which General Holmes has\nbeen making, as to how they propose to treat them.\nRegraded Unclassified\n94\n-3-\nWe went around in the afternoon sightseeing at the\ndocks. I had supper with General Bedell Smith, Chief\nof Staff, and all his Deputies, and they were all kind\nof jumpy because they were expecting other sorts of\nmoves. I never saw Eisenhower in such good shape. He\nmade the best impression he has ever made on me; he was\ncompletely relaxed and determined that he would clean\nthis thing up while the weather was good. And that night\nwe still stayed on his train down in that part of England.\nThe next morning we were supposed to leave at eight-thirty\nfor England and couldn't. We went over to England with &\nfighter escort. That was fairly precious. And before\nI left General Bedell Smith said, \"Now, you can't go\nbeyond Headquarters. I said, \"Look here, General Smith,\ndon't give any orders like that. You let General Bradley\ndecide how far I can go. Well, he said all right reluctantly.\nWe got over to Cherbourg. It only takes twenty-five minutes\nto go over there, and General Lee, Deputy to Eisenhower, in\ncharge of all services and supplies, took us around, and\nthe thing that they are doing at Cherbourg--it is to hell\nand gone, the docks. The reason they are repairing it so\nfast is that all of the construction along the wharves are\nwood, wooden piles, wooden piling, everything, so they can\ngo very, very fast. No concrete, no permanent construction.\nMR. SULLIVAN: That is the reconstruction.\nMR. GASTON: What is the old construction, wood?\nH. JR: No, concrete. But they are really just\nbuilding temporary things. Everything is driven-wood\npiles. They go out beyond the present docks and drive\nthese in the harbor, 80 to speak, these piles, and wood\non top. Then, of course the things that they used\neverywhere are these ducks that go out and unload and\ncome back again. But the one thing you get over there\nis that the speed and tempo is just unbelievable. I\nmean, I have never seen any place where the electricity\nis so in the air and the drive behind this thing, you\njust can't understand it until you see it and feel it.\nRegraded Unclassified\n95\n-4-\nWe were going around Cherbourg and I saw this\nNavy Lieutenant. I shouted to him. It was Jamieson\nwith a whole portfolio of beautiful sketches on the\nCherbourg thing. Of course, the whole Service and\nSupply is beautifully organized, because the thing\nthat the Germans don't know, you see the bulk of the\nstuff is still landed at these beachheads where they\nlanded originally. What they have done is, the Americans--\nI forget how many steamers, they have taken these old\nsteamers and have sunk them right out in the ocean, so\nto speak, and they besides that, they have some concrete\nthings that they have sunk, which acts as a breakwater.\nFor forty years before they landed, the water always\ncame in one direction. Just when they landed, the wind\nshifted. But they bring these boats in, and then they\nnot only have these ducks, but the new thing is a kind\nof pontoon which the Navy has developed, which I would\nsay is about five by five and seven feet deep.\nMR. SULLIVAN: Compartments?\nH.M.JR: Yes, and they bolt a lot of these together\nand then use them as a barge or they use them as a runway\nor use them any way as a breakwater. They use them all\ndifferent ways to bring this stuff in. That is quite new\nand they are very much pleased with it. And this enormous\nstuff--there is one beach I went to--over five hundred\nthousand men come in through these barges and one thing\nand another. At one beach alone, five hundred thousand.\nIt is just unbelievable. The tonnage is simply huge.\nMR. D.W. BELL: They are not using the port yet?\nH.M.JR: A little, but it is the beaches. That is\nwhat the Germans haven't been able to figure out. I went\nto the two American beaches, and there is one beach--how\nthey ever landed--they have & bluff that rises at least\n& hundred feet, and a blockhouse at the bottom. When\nthe first division landed there, they landed plump into\na German division which was on the loose. I don't think\nthat has been published yet.\nRegraded Unclassified\n96\n-5-\nMR. D.W. BELL: General Holmes told us that:\nH.M.JR: Of course the loss of lives was something\nterrific. Anyway, the loss of lives--let's see, in\nAmerican troops, something like sixteen thousand dead\nand when I left there, there were seventy-eight thousand\nwounded. And the dead is twice that of the English, and\nthe wounded is four times. The wisecrack they say over\nthere is, \"If you are not careful, we are going to\nencircle Montgomery!\"\nMR. GASTON: Did you notice this interesting serial\nstory in the papers about Montgomery? The Germans announced\nthat Montgomery was in command only of the British and\nCanadians. That was denied in a half-hearted sort of way.\nThen it was announced by AP and all the news services from\nFrance that Montgomery was now in command only of the\nBritish and Canadians and Bradley in command of all the\nAmerican troops, directly responsible to Eisenhower.\nThat came out from the beachhead past the censor. Yesterday\nthat was denied in London. Tomorrow it may be different.\nH.M.JR: The facts are this. When Eisenhower moved\nhis headquarters to France, he became Commander-in-Chief\nof the Allied Forces, in France, and Bradley became\ndirectly responsible to him.\nMR. GASTON: That is the story that was told the\nday before yesterday and denied yesterday.\nH.M.JR: That is the correct story.\nMR. PEHLE: He took Montgomery's job?\nH.M.JR: No, no. You see, there was a Command of\nAllied Forces in France, of which Montgomery was the Head.\nEisenhower moved to France and he became Commander of the\nAllied Forces and as such, Bradley is directly responsible\nto him, as is Montgomery.\nMR. SULLIVAN: Then that puts Montgomery and Bradley\non an equal footing, one in charge of Americans and one\nof British.\nRegraded Unclassified\n97\n-6-\nH.M.JR: Bradley is doing as he pleases, anyway.\nMR. GASTON: The Germans told us that two weeks ago\nand I thought it was true at the time.\nH.M.JR: He paid practically no attention to him.\nI had the good fortune to have Henry meet me in\nFrance when I got off. He is attached there to General\nEisenhower's Headquarters. I said, \"I have returned\nfrom France where both Henrys were well.\" Mrs. Morgenthau\nsaid they eliminated the word \"where\".\nMRS. KLOTZ: Yes, that didn't show up.\nH.M.JR: I put it in. She didn't get the one and\nand only letter I wrote. He is fine and looks fine. I\ndidn't get up to his headquarters. We spent the night\nin a little French house which they have sort of taken\nover. And old grandmother and her daughter, fifteen,\nlooked after us. I have decided if I have insomnia to\nthrow away the bed sheets, because I slept without a\npillow, between two army blankets, and I had the most\nperfect sleep I have ever had. If you have insomnia,\nthrow away the bed sheets.\nI brought him the New York Times and the New Yorker.\nWhen he left he said, \"Daddy, would you feel very badly\nif I only took the New Yorker?\" (Laughter)\nThen the next morning early, eight-thirty, we were\nat Bradley's Headquarters. He makes an excellent impression.\nHe is a much finer-looking soldier--I have some very good\npictures--when you see him. He is well over six feet tall\nand another man like General Clark. Very quiet, complete\nself-control, complete balance, and seemed to know just\nwhat he is doing and moves at a steady pace but not too\nfast, I mean in his actions. It didn't take him very\nlong. He planned our trip. I have a map somewhere--\nRegraded Unclassified\n98\n-7-\nMR. GASTON: Where did you go?\nH.M.JR: Went down to Corps Headquarters and then\nDivision Headquarters. At Division Headquarters, this\nGeneral Brown, head of a former National Guard organization\nfrom Pennsylvania, made a terrific impression on me. I\nhad a great argument as to whether I should or should not\nreport him, but I was saved the trouble. They removed\nhim the next day, because the people with me evidently\nwere conscious of it. Then they put in another general\nto take this General Brown's place and the next day a\nsniper got him through the neck.\nThey let me go down within five thousand yards of\nthe Germans this time, but they wouldn't let you go any\nfurther, because the thing is so fluid and they have\nlittle pockets behind. They just don't know. But in\nfront, of course, of this particular group where we\nwere--well, we were west of Avranches and east of the\nplace called Villedieu, and due south of St. Lo.\nMR. GASTON: You were right in the spot where the\nGermans had been counter-attacking a day or two before.\nH.M.JR: This, I think, was the 29th or 29th Division,\nI am not sure. That was where the fighting was the most\nsevere and they had five German Divisions right opposite\nthere. Three were SS Divisions. This was where the\nfighting was the most severe.\nMR. GASTON: They tried very hard to break through.\nH.M.JR: Very hard to cut through to Avranches.\nThis was where the spearhead was, right where we were.\nThe thing that nobody could understand is that--I mean,\nhe threw in three out of the five Divisions, SS\nDivisions. And once they were repulsed. Why he has\npermitted this enveloping movement, nobody can understand,\nunless it is not having any air, he can't see our troops.\nMR. GASTON: It seems so plain. You just couldn't\nunderstand. In our newspapers you could see it developing.\nRegraded Unclassified\n99\n-8-\nH.M.JR: They think maybe they have orders that\nthis should be another Stalingrad. But of course,\nGeneral Patton has been perfectly magnificent. It\nis he who has done all of this. The place that they\ntook us was most interesting and was just south of\nSt. Lo where the Air Corps has put in fifteen hundred\nbombers on an area about five miles deep, not much\nover a mile wide and that is where the break-through\nwas, just south and east of St. Lo and that was--\nthey withdrew our troops. There isn't anything left.\nI picked up a beautiful German helmet under a tank\nthere.\nMR. D.W. BELL: Do you have this tapestry with you?\nH.M.JR: That is just a personal matter.\nThis place, what they did there--and I wouldn't\nrepeat any of this anywhere--they ordered our troops\nto withdraw fifteen hundred yards, which is almost a\nmile. Then they dropped smoke-screens to show our\nfliers where the boundary was. They came through\nand a whole wing missed the thing by three thousand\nyards and that is where they killed General McNair\nand eighty-seven men. Then they said, notwithstanding\nthe fact that this Company was completely decimated,\nthey went in anyway and attacked. I don't know whether\nany of you saw anything on that. They wanted to with-\ndraw because they felt so terrible, but they went in\nand did the attacking, but they missed their mark by\nthree thousand yards, because General Spaatz showed\nme a map of every bomb. They feel terrible. I will\nsay this for the ground troops, they didn't complain\nor say a word.\nMR. GASTON: The Canadians did identically the same\nthing day before yesterday.\nH.M.JR: And the excuse that they give is that\nwhat they call pin-point bombing--I don't understand it.\nWhen they have this kind of ground strafing they don't\nknow how to do it. General Spaatz went into lengthy\nRegraded Unclassified\n100\n-9-\nexplanation and they say they feel something terrible.\nAnd of course the trouble with the air people again is\nthey completely mis-figured, I don't know how, the\nGerman air strength. The German air strength, the\nproduction, is just four times what Arnold told me.\nBut it doesn't make so much difference, because they\nhave licked them anyway. The air people swear that\nthey are all green pilots and that there are practically\nno old pilots left.\nReally, there are only tawo things which are new,\nas far as warfare is concerned. One is these beaches,\nwhich is a completely new thing in warfare, this\namphibious warfare, and continuing to land on the\nbeaches.\nMR. GASTON: Plus the Naval support.\nH.M.JR: No, that isn't new. The other thing which\nis new and I can't remember his name and I haven't got\nhis name here, they have a two-star Air Corps General\nattached to Brandon. I met him once in Philadelphia.\nAnd what they have done and they have only done it the last\ntwo or three weeks and I think it is a success, in each\ntank group in one tank which is especially equipped, is\nan Air Corps pilot sitting in that tank. I don't think\nthat has been told. And this Air Corps pilot sitting\nin the tank is in constant communication with the\nobservation plane above, and the air people go ahead and\nthey will see this tank and see this and that and they\nreport down to this fellow and they direct constantly\nthe tanks from the air. And in many cases the air people\nget the tanks. In other words, the air people clear the\nground by shooting up the tanks and then the tanks go\nthrough.\nMR. GASTON: Yes, that has been told.\nH.M.JR: In one case they found a couple of our\ntanks and a column of German tanks going down the same\nroad, neither knew they were both following each other.\nBut it is the air people firing with their fifty-calibers\nfrom the rear. They shoot up these tanks and then our tank\n101\n-10-\npeople go through. They say it is all within the last\nthirty days, they have never done it before. It is quite\nnew. But they feel if they get this enveloping movement,\nirrespective of the one in the south, there is nothing\nto stop them from there to the Rhine, absolutely nothing.\nMR. GASTON: There is an army up in the Pas de Calais\nregion.\nH.M.JR: They are older, non-mobile troops.\nMR. GASTON: They think they can take them without\ndifficulty.\nH.M.JR: They are not worried about them at all.\nIf this is successful, in no time at all you will see\nour troops on the Rhine, irrespective of what happens\nin the south. And they are not going to bother with\nParis.\nMR. GASTON: They will go right around it, up the\nLoire and up the Seine Valley.\nH.M.JR: Yes, but it is anybody's question what\nwill happen. Then they know from interception that the\nGermans are very short of gasoline. I mean, their\nflights are very much limited by the gasoline, as we\nare, too.\nMR. D.W. BELL: Really?\nH.M.JR: Our flights are definitely limited by the\namount of aviation gasoline. We do not have enough.\nMR. PEHLE: Why not? Transportation?\nH.M.JR: No, because it isn't here. They are\ndefinitely short of aviation gasoline. There are\ndefinite flights which are held up and they have many\nmore crews than they have fighter planes. They are\nwaiting, definitely. They don't have enough fighter\nRegraded Unclassified\n102\n-11-\nplanes. We are short of those. And they are short of\nheavy ammunition, too. They don't begin to have enough.\nMR. D.W. BELL: Didn't Nelson testify yesterday before\nCommittee that there was plenty of ammunition on the Front?\nH.M.JR: It isn't true. One General will tell you\none thing and another, another thing. I have asked the\nsame thing over and over again and they definitely have\nto parcel out their ammunition-- the heavy ammunition,\nthe heavy guns. Will you please see if you can get &\ncopy of my broadcast or record?\nMR. GAMBLE: Yes, sir.\nH.M.JR: The reason I am trying to do that is, as\nEisenhower said, \"The nearer you get to victory, the\nmore you have to speed up, and at home, the nearer you\nget to victory the more people think you can sit back\nand take it easy. It is just the reverse.\nMR. GASTON: Yes.\nH.M.JR: The thing I would like, certainly I am going\nto tell the President, I went to the evacuation hospitals\nin France, and in some cases it is unbelievable. Men are\nthere four hours after they have been wounded. I saw them\nput them in, went into the plane, and these air nurses are\nthe finest body of women I have ever seen. They are\nmagnificent, these girls. Last night they asked me\nto go on one of these planes that came in there. I\nwent on. There were sixty boys and I shook hands with\nevery one of them, and some of them are very, very\nsick.\nMR. PEHLE: Was the plane on its way back here?\nRegraded Unclassified\n1/s\n103\n- 12 -\nH.M.JR: Yes, they come in to LaGuardia. I can't\nunderstand why it is secret. There were three last night\nin Newfoundland on the ground. This stupid Colonel didn't\nsay the boys wanted to see me. They asked why I wouldn't\ncome and see them. The ones up there had already heard\nI had been on the ship. When you see these people - and\nthe odor is such that I had all I could do not to vomit.\nIt is something terrific, the odor of the wounded. These\nmen all come in to LaGuardia - I don't know how many a\nday - there were three ships while I was there - ambulance\ncases in Newfoundland. Why they don't take some of these\nlabor leaders up and let them see these boys come out, I\ncan't understand. Why they keep it a secret that they\nall come in to LaGuardia--\nMR. D.W. BELL: I don't think it is a secret at all.\nI think it is known. It has been published once or twice.\nI don't think there is a lot of publicity given to it.\nH.M.JR: Why not? why not let some of these people\nstand there and go into one of these ships. That brings\nyou right to the front. You don't have to go to France,\nyou can go right to LaGuardia and see these men. I mean,\nthey bring the badly wounded as well as the partially\nwounded. It takes an awfully strong stomach, and the boys\nare wonderful. That sight - and going into these shelters\nin England - I just can't tell you. You see a family -\nthere was one family there that had no home and they had\nbeen there for six weeks, living there. That was their\nhome. I saw one mother with five children. I saw another\nmother with an eight-months-old baby.\nNow, there is this one shelter - a new subway, never\nfinished - one hundred and twenty feet down - which they\nare saving in case these thirty-tonners come over. That\none is beautiful and clean, and everything. Then there\nis another one which is really under a bridge over the\nThames. They just close the arches, and here you are,\nright at the river in the dock area - the poorest area.\nYou go in and see these people - this is London - and\nsee the spirit.\nRegraded Unclassified\n2/s\n104\n- 13 -\nSherwood went the night before. he helped me, inci-\ndentally, on the talk.\nMR. GASTON: Bob Sherwood?\nH.M.JR: Yes, and Ed Murrow, who is a grand fellow.\nHe couldn't stomach the second night - he just couldn't\ngo through twice. But the spirit of those people! And\nthey loved it. He didn't want me to take a camera down\nthere, so I said all right. They would have loved to have\ntheir picture taken.\nAnd Mrs. Churchill is just marvelous. She is like\nMrs. Roosevelt. She goes in there and she is just wonder-\nful. They like to be talked to. You see two little boys\nin bed together. They have got all the family - in-laws\nand everybody. They will be in one little group.\nAnd in the whole of England there was only one person\nhad a little kick. God! I don't know how the American\npeople would be, but, of course, the thing that this has\ndone is toughen them up, SO that - believe me - any idea\nof any negotiated peace, or anything like that, is finished.\nI asked the fellow in the hotel who looked after me,\n\"How do you feel about the Germans?\"\nHe said, \"Well, we want to stamp them out, but,\" he\nsaid, \"the high finance doesn't!\"\nMR. D.W. BELL: The President's press conference this\nmorning said that we couldn't have a negotiated peace\nbefore we occupied both Germany and Japan.\nH.M.JR: Well, I don't want to go into it now, but\nI spent most of my time on what the negotiations are, and\nhow they are going to treat Germany. He will have to get\nawfully busy. It took me days, and days, and days, but\nI got the story. There isn't anything in regard to\nGermany which is being carried out. I am going to tell\nHull so, because his boys are the worst. It is going to be\na nice WPA job.\nRegraded Unclassified\n3/s\n105\n- 14 -\nKeep a central Germany; keep a strong Germany; and\nthe result is that this group that is studying it - the\nRussians won't tell them anything - the Russians won't\nhave anything to do with them.\nMR. D.W. BELL: Of course, they want to string out a\npretty strong Germany between them and Russia - the English\ndo.\nH.M.JR: Eden doesn't.\nMR. D.W. BELL: Between them and Russia?\nH.M.JR: No, Eden doesn't want that. ne wants to\ntake Germany apart, completely apart. He is very good on\nthis thing.\nMR. D.W. BELL: I don't believe they have talked that\nway over here.\nH.M.JR: I know they haven't. Some are good and some\naren't. But Eden is very good on this thing, and he\ndoesn't pull his punches, either. I don't know how much\nMr. Hull knows, but he is certainly going to get an ear-\nfull. I didn't go over for that, but I made that my\nbusiness.\nMR. D.W. BELL: You got the word that Mr. Hull would\nsee you tomorrow morning at nine-thirty?\nH.M.JR: Yes, I want to see him first, before I see\nanybody else.\nI left Joe there to clean up on the Hungarian thing and\nnothing else.\nMR. LUXFORD: Good.\nMR. PEHLE: You got the cable, didn't you? We sent\nhim a cable. Did he get it?\nH.M.JR: I think so.\nRegraded Unclassified\n4/s\n106\n- 15 -\nBut Joe was insisting on raising the quota question\nof Palestine and I took the thing up with Mr. Churchill\nand he would just have no part of it. They had the meet-\ning the night before of the War Cabinet and they were\nperfectly willing to go along with us.\nMR. PEHLE: They didn't, ough.\nH.M.JR: Wait a minute. I am raising the financial\nquestion. Joe was SO sure that the rest would be so easy.\nI took it up with Eden the first night I got there. Sir\nJohn Anderson was there. Eden said it was a matter of the\ncolonies; they are scared to death of the Arab question.\nSo I finally had to tell Joe I had to give him a directive\nnot to do it. I wanted an over-all agreement which he\nworked out that afternoon with the people down the line\nin the Foreign Office - an agreement - a joint guarantee\nthat they would take everybody that came out of Hungary, do\nyou see? The position I was taking - \"We will find a\nplace\" - just as I took with the President. \"Let's fill\nthe quota up first.\" I was terribly pleased. I talked\nto Weissman twice.\nMRS. KLOTZ: Did you see him?\nH.M.JR: No, his doctor wouldn't let him come, so he\nsent a Professor Brodetsky to see me. I was awfully glad\nJoe got there. Professor Brodetsky said, \"This is not a time\nto raise politics\" - meaning Jewish politics. He said, \"This\nis a question of saving lives. The two things have nothing\nto do with each other.\nHe said he would much rather have the over-all joint\nguarantee and not raise the issue of the White Paper, and\nthat the two things had nothing to do with each other.\nMR. PEHLE: The British twice have refused to go along\nwith us on the joint guarantee.\nH.M.JR: I know, but here is a representative on the\nground who took the position which I was taking - to get\nthe joint guarantee.\nRegraded Unclassified\n5/s\n107\n- 16 -\nMR. PEHLE: That is what we have been fighting for.\nH.M.JR: But not bring in this question of the quota.\nAnd after all, once the quota is full, I am confident that\nthe Anglish are not going to stand on five thousand, or\nten thousand.\nMR. PEMLE: I don't think they could stand on it.\nH.M.JR: I don't know where you and Luxford stand,\nbut I am sure, after talking with Churchill and Eden, that\nif we had gone in there and put up a fight to break down\nthis quota, we would have got nothing, absolutely. This\nway, I think the chances are ninety percent we are go ing\nto get a joint statement in a day or two saying that we\nwill take all that come out.\nNow, since I have been there - I don't know whether\nit came from here - the Foreign Office showed Joe a cable\nfrom this man that Sweden has sent down to Hungary in\nwhich he has been able to arrange - this Swede - for\nshelter for a great many Jews in Hungary. Did you know\nthat?\nMR. PEHLE: I knew some of that.\nH.M.JR: I don't know where you stand, but at least\nthat is where I stand.\nMR. PEHLE: The reason I sent the cable, Mr. Secretary--\nH.M.JR: I didn't see that.\nMR. PEHLE: I just sent a cable to Joe saying what\nthis terrible position is which the British have taken -\nthat we will take all the responsibility and they will\ncooperate with us. That just is not satisfactory.\nH.M.JR: They have changed since that.\nMR. PEHLE: That is wonderful.\nRegraded Unclassified\n6/s\n108\n- 17 -\nH.M.JR: I am almost positive that they will join us\nin a statement in which they will say that we will guarantee\nto the Hungarians to take all the Jews that will come out.\nMR. PEHLE: We have already sent our guarantee.\nH.M.JR: And that we will share the expenses according\nto our ability.\nGetting away from that thing - you know that I fought\nin connection with the English formula. They brought up\nthat same formula we had in connection with either France\nor Holland--\nMR. LUXFORD: Plan A.\nH.M.JR: We got away from that. I was perfectly\nhappy.\nWere you with me on this question of not bringing\nup the White Paper quota?\nMR. PERLE: Except that temporary shelter in Palestine\ndoesn't necessarily bring up the White Paper.\nH.M.JR: It does 80 far as they are concerned.\nMR. PEHLE: So does the Hungarian offer. That is why\nthey held back, wasn't it? Didn't they feel if we got\nany considerable number out, they would have to give up\nPalestine?\nH.M.JR: It is in the back of their mind, but the fact\nthat Professor Brodetsky had that position - he represents\nthe Jewish people there - I had to take this position.\nMR. PEHLE: I am inclined to agree that the only\nway you could possibly break that is by Roosevelt taking a\nterribly strong stand. he hasn't been willing to do that,\nso I don't think you could break it down.\nH.M.JR: lie won't take it because the quota isn't full.\nRegraded Unclassified\n7/s\n109\n- 18 -\nMR. PEHLE: The quota isn't full because the British\nhave doled out the certificates one by one. I don't like\nto say it, but since these negotiations have been going on\nthe Germans have stopped any immigration from Hungary.\nH.M.JR: Anybody going out - and this man, this Wallenberg\nis able to get them shelter in Hungary?\nMR. PEHLE: To some extent. Wallenberg is there solely\nbecause we put him there. He is really our representative.\nBut the Germans are now taking this position: Nobody\ncan leave Hungary unless they get ransom, and there is no\ndisposition, any place, to give the German Government ransom\nat this point.\nH.M.JR: Joe will be there. And, incidentally, Goodhart\nhas agreed to become my representative. I told him - \"Now\nplease don't take this unless you think you are carrying a\ntorch and feel very deeply about it.\" He agreed he would.\nMR. PEHLE: How long will Joe be away?\nH.M.JR: According to Joe he can clean it up in a\ncouple of days. He thought he would clean it up yesterday.\nI left London at two o'clock yesterday. He thought he\nwould clean it up yesterday - he was just sure he would.\nMR. PEHLE: There is nothing we should do from this\nend, Mr. Secretary?\nMR. GASTON: When did you leave Prestwick?\nH.M.JR: Three hours later, about five o'clock their\ntime. About twenty-five hours elapsed time from the time\nwe left until the time we got to New York.\nMR. PEHLE: There is nothing we should do from this\nend?\nH.M.JR: I don't think so. Winant is very good. Joe\nis there. You know the Interdepartmental Committee is\nputting up four hundred thousand pounds.\nRegraded Unclassified\n8/s\n110\n- 19 -\nMR. PEHLE: For this purpose?\nH.M.JR: Yes; Joe went to that meeting.\nMR. PEHLE: We may have to let it be known here that\nthe United States Government accepted that offer.\nH.M.JR: It appeared in British Intelligence. Who\nsaid that the New York Post--\nMR. PEHLE: That is right. They have a story that\nthe British had accepted it, and they got it from the\nBritish Embassy here.\nH.M.JR: I read that and Joe was upset.\nMR. PEHLE: It was a planted story and it was put in\nbecause\nH.M.JR: (To Mrs. Klotz) Make a note of this. British\nIntelligence - News Intelligence - send out a summary of\nAmerican news every day to Angland. It is wonderful.\nMR. PEHLE: I have seen one copy.\nH.M.JR: Then one was sent from here, not nearly as\ngood.\nMr. PEHLE: We may have to let it be known here, Mr.\nSecretary, that the United Stated accepted that offer.\nH.M.JR: I wouldn't do that. I would give Joe another\nday or two.\nMR. PEHLE: We can't wait long, for this reason, that\nit is very likely that things are going to go very bad\nin Hungary again.\nH.M.JR: A day or two wouldn't help. If you did that\njust now it wouldn't help Joe any. Winant is very hot\non this thing.\nMR. SULLIVAN: How is Winant?\nRegraded Unclassified\n9/s\n111\n- 20 -\nH.M.JR: He is all right. He is over-worked the way\neverybody is over there, but he couldn't have been nicer\nto me. Here, Churchill was leaving that eventing I got\nback from Italy and he gave me two hours. I got & great\nkick - he took me through his own map room, himself, which\nwas quite a thrill. ne is a great fellow. But he started\noff, bang, on how England was flustered. (To D.W.Bell) I\nwill give you a written memorandum later. He and I got\nalong very well. We put it right on the line.\nMR. D.W. BELL: Still broke?\nH.M.JR: The interesting thing with Churchill was -\nhe said, well, he was practically seventy and it was time\nhe made peace with his Maker, and as soon as the war was\nover he would resign and be the most unpopular man in\nEngland.\nI said, \"Well, Mr. Churchill, I want to go back to my\nfarm, myself,\" whereupon he broke into this song, \"I want\nto go back\" - you know this song. He knew all the words\nand there are two verses. How does that song go? He\nknew two verses.\nMRS. KLOTZ: An American song?\nH.M.JR: The great joke with Harry is, he had one\nnight off; his alibi was Bernstein. But unfortunately,\nthe next day, as a result. of his one night without me, he\nhad one of his bad spells. So I told him the moral was\nhe had better stick around with me. Bernstein was no\nalibi.\nMR. LUXFORD: How is Pernie?\nH.M.JR: Bernie is very fine. He said, \"You know,\nmy wife took my second child to the doctor. The doctor\nlooked at that child and said, 'Mrs. Bernstein, that is the\nfinest specimen I ever saw. You should have five more\nlike it.'\"\nRegraded Unclassified\n10/s\n112\n- 21 -\nI said, \"Bernie, you don't hear, see, or understand\nanything!'\nHe did bring Taylor back, you know. His wife is\nexpecting a child and is all alone - just to stay until\nshe is all right.\nBut bernstein worked on me the whole time I was there.\nSomebody said something - yes, General Holmes said three\ntimes he had recommended Bernstein become a general. He\ncouldn't understand why not. I couldn't help but say, \"Well,\nI wouldn't want to be around when Mrs. Ed Foley hears\nabout it.\" (Laughter) I said, \"When she hears about\nGeneral Bernstein I want to be out of town.\"\nlie has recommended he become a general three times.\nMR. GASTON: Where is Ed?\nH.M.JR: Italy.\nThese little buzz bombs go over - they make a note\nvery much like a single-engine fishing vessel. They go\nchug-achug-achug. Then supposedly thirty seconds after\nthey stop, they hit. I heard two go over our hotel. I\ncould hear it just that close. We came out, once, of officers'\nmess and you could see the thing about a mile down, but\nthat is as close as I got. Nobody pays any attention to\nthem - I mean, when they go over! (Laughter) But every-\nwhere you go you see the damage in London. The damage is\nunbelievable; it is terrific. Averywhere you go you see\ndamage.\nMR. GASTON: Did you see Larry Bernard?\nh.m.jk: No, what is he doing?\nMR. GASTON: Coast Guard. And Hesford is over there,\nalso, on this air-sea rescue stuff.\nH.M.JR: By the way, did Lynch stay or go?\nMR. LUXFORD: Lynch stayed.\nRegraded Unclassified\n11/s\n113\n- 22 -\nH.M.JR: Is that right? That is very nice.\nWell, Bell, in the five minutes we have left, is\nthere anything? I have been just sort of gossiping here.\nMR. D.W. BELL: I only have one thing that needs to\nbe settled today. Dean Acheson wrote you a letter and\nasked for designation of a Treasury representative to serve\non a committee of UNRRA. UNRRA meets in Montreal on\nSeptember 15 and he wants a man, SO I have written a\nletter designating Harold Glasser. Glasser was on it\nbefore. He said he would like to have a decision today\nso they can get started.\nH.M.JR: He would be the logical fellow. (Secretary\nsigns letter to Dean Acheson)\nWhen will that be?\nMR. D.W. BELL: Sometime after the 15th. I have said\nin there that he will be available. They also want another\nTreasury representative to serve on a subcommittee as a\ncounsel. That subcommittee will pass on whether or not a\nforeign government is able to pay. I have suggested Harry\nfor that; foreign exchange for supplies furnished, rather\nthan getting direct relief.\nH.M.JR: Who is asking?\nMR. D.W. BELL: Dean Acheson. Same kind of a letter.\nH.M.JR: Does that mean that Harry has to go up to\nMontreal?\nMR. D.W. BELL: No, but whenever a country comes in and\nasks for relief - Greece is now in; that will be submitted\nto this Committee and they will pass on it and advise the\ncounsel as to whether or not the country can pay. The first\none is Greece and that would be rather simple, I should\nthink, that they cannot pay. (The Secretary signs letter\nto Dean Acheson in re Mr. White)\nH.M.JR: Anything else?\nRegraded Unclassified\n12/s\n114\n- 23 -\nMR. D.W. BELL: That is all right now.\nH.M.JR: Incidentally, the Eighth Air Force has a\nfellow from Massachusetts who has started a special War\nBond Drive, asking for thirty dollars per man. It is the\nbest thing I have ever seen. Smith has the whole story.\nThey gave us a memorandum. If they would do that in each\ngroup - of course, I started to talk about this fellow\nSpaatz - Doolittle says, \"That is the trouble - as soon as\nwe get a good man, you want to take him away. But\ncertainly he ought to be lifted up to do the thing for the\nentire Air Corps. They are going to get thirty dollars\nper man. They have their own posters, we brought them\nback.\nThen another interesting thing - he is going much\nfurther; conversion of insurance, and working up a whole\nplan to find jobs for these men - find places for them -\nhe is a most unusual fellow.\nMR. SULLIVAN: Do you recall his name?\nH.M.JR: No, but it is in the report.\nMR. GAMBLE: We will get a copy?\nH.M.JR: Yes, there is a copy available. But it is\nway, way above anything I have ever seen. And the fact\nthat these men are willing - I mean these fellows who are\nrisking their lives are doing so handsomely. But the\nwhole thing is Doolittle; he is looking forward for these\nfellows so they will have some idea of security when the\nwhole thing is over. He is working on that now. I think\nthey ought to pick that fellow up. He is really good.\nInstead of sending nine generals over to do something,\nwho know nothing about it - have they gone?\nMR. GAMBLE: Yes, sir; part of the party has gone.\nAs a matter of fact, Mr. Secretary, they picked very good\nmen for it. I was quite surprised.\nRegraded Unclassified\n13/s\n115\n- 24 -\nThe man in charge of it was our Administrator in\nNebraska before he went into the Army, McDermott. He\nhas the rank of a general now.\nMR. LUXFORD: I know that man.\nR. PEHLE: Mr. Secretary, is the Treasury being\nrepresented at the Dumbarton Oaks Conference?\nH.M.JR: Not that I know of.\nMR. D.W. BELL: Not that I know of.\nMR. PEHLE: There are likely to be all sorts of\nquestions like reparations coming up there. Even the Army\nis sending General Strong.\nMR. LUXFORD: Ben Cohen is attending.\nMR. PEHLE: I should think clearly the Treasury has\na very important part of it.\nH.M.JR: Anything else?\nMR. D.W. BELL: We have a draft of the Executive Order\nyou asked to be prepared. It is ready any time you want\nto go over it.\nH.M.JR: I will be around most likely through\nSaturday, anyway.\nRegraded Unclassified\n116\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDate\nAugust 17, 1944\nTO\nSecretary Morgenthau\nFROM Mr. Luxford\n(For your information)\nReport on public education program on\nFund and Bank\n1. American Forum of the Air Broadcast on August 22.\nThe nature of this broadcast, participants, and the\npreparation of the questions and answers have been outlined\nto you in a separate memorandum. There remains to be done\nin connection with this program two things: First, the\npreparation of your opening and closing remarks which are\npresently in draft form; second, fixing a time for a\ndiscussion of the program between Granik and the delegates.\nGranik would like to have this some time on Monday.\nIt is contemplated that the American Forum of the Air\nwill provide two further programs on the Fund and the Bank,\nboth of which will be of the controversial type with Taft\nand Charles Dewey appearing as opposition on a program\nwhich has been tentatively scheduled for the middle of\nSeptember.\n2. Lunch with Salzburger (New York Times).\nAfter discussing this matter with Mr. Gaston, I\nadvised Mr. Salzburger that I would have luncheon with him\nand members of his editorial staff on Monday, August 21. In\nmy opinion, it would be very helpful if it were possible for\nMr. White or one of his men also to attend this luncheon.\nI should like to discuss this with you at your convenience.\nRegraded Unclassified\n117\n- 2 -\n3. Program for Women's Conference on International Affairs.\nWe have worked out on a tentative basis furnishing\nspeakers for a discussion of the Fund and Bank before the\nWomen's Conference on International Affairs. This is 8.\nsmall informal group in Washington which is able to reach\nthe leaders of most, if not all, of the national women's\nclubs and organizations. The Conference will sponsor the\nprogram and invite the national leaders of all the women's\norganizations- to attend. They have previously cooperated\nwith State in handling similar programs on the education and\nfood conferences which were very successful with between\n75 or 100 women leaders attending. It would serve as an\nexcellent forum for us to get over to the women of the\ncountry the importance of the Bretton Woods Conference and\nto enlist their cooperation. We expect to have a full day's\nprogram at a layman's level with a number of speakers. A\ntranscript of their statements would then be published and\nwould be distributed along with a number of other documents\non the Fund and the Bank to each of the persons attending\nthe Conference and also be made available to the local\nwomen's clubs throughout the United States.\n4. Americans United for World Organization.\nThis is a group representing the recent merger of the\nUnited Nations Association, Committee to Defend America,\nFight for America group, American Free World Association,\nand Citizens for Victory. Its purpose is to sell the public\non the need for United State participation in cooperative\ninternational organizations. We have discussed the matter\nwith a Miss Henderson representing that group who has assured\nus of their desire to cooperate and it will now be necessary\nto work out an educational program under their sponsorship.\nWork is being held up tentatively with this group since they\nhave only recently organized and they want to complete their\norganization work before inaugurating the educational program.\n5. United Nations Association.\nThis is one of the groups mentioned under 4 but still\nmaintaining a separate identity. I have an appointment with\nClark Eichleberger, the National Director of the Association,\nto work out their participation in an educational program.\nRegraded Unclassified\n118\n- 3 -\n6. American Legion.\nWe have discussed the merits of the Fund and the Bank\nwith Mr. Galloway who is Chairman of their Sub-Committee on\nForeign Policy. He is going to prepare a report on the\nsubject for the Legion and he wants to obtain our comments\nbefore submitting it. While he is inclined to be conservative,\nnevertheless we are hopeful that we can get him to adopt a\nsympathetic approach. It will, of course, be extremely\nhelpful if we can get the American Legion working with us\nin this field.\n7. Discussions with Delegates.\nIn connection with my talks with the various delegates\nregarding their participation in the American Forum of the\nAir broadcast, I have had an opportunity to also discuss with\nthem in a general way the subject of cooperation with us on\nthe Fund and the Bank.\n(a) Brown has been very cooperative and advises me\nthat he is \"working himself to death\" attending informal\nmeetings in Chicago explaining the meaning of the\nBretton Woods Conference.\n(b) Acheson is most anxious to cooperate on the\nradio broadcast and has indicated a desire to discuss\nin general the problem of public education.\n(c) Senator Tobey is coming all the way from New\nHampshire just to participate in the broadcast. He\nadvises me that he has been working under cover on some\nof the Republican senators, in particular, on Senator\nVandenberg.\n(a) Congressman Wolcott was reluctant to participate\nin the broadcast because he was afraid it might interfere\nwith his work behind the scenes with his Republican\ncolleagues. However, he is most cooperative and I have\nprepared a separate memorandum on my discussions with him.\nRegraded Unclassified\n119\n- 4 -\n(e) Senator Wagner and Congressman Spence are,\nof course, cooperative. Senator Wagner could not\nparticipate in the broadcast because of a previous\nspeaking engagement in New York.\n(f) Eccles appeared to want to cooperate.\nHowever, he stated that he was in a difficult position;\nthat he had sent out a letter to each of the Federals\nurging them and their officers not to make any public\nstatements in opposition to either the Fund or the Bank.\nHe said that this was particularly necessary in\nconnection with the New York Federal as both Sproul\nand Williams were getting ready to attack. He now\nfeels that it would be unfortunate if he were to come\nout publicly on the subject of the Fund and the Bank,\nsince it might open the opportunity for the New York\nFederal officials to cut loose with their blast. By\nrefraining from a discussion at this time, he feels\nthat he can hope to hold them in line. He did say\nthat if he were called upon to testify before Congress,\nthat that would be a different matter.\n(g) Vinson was most helpful and was anxious to\nparticipate in the broadcast provided his health\npermits.\n(h) I did not invite Miss Newcomer to participate\nin the broadcast because we already had an ample number\nof acceptances. However, she was in Washington one day\nlast week and discussed with me the work she has been\ndoing to support the Bank and the Fund with various\nwomen's groups. She will be most helpful and cooperative\nand was quite enthused with the program for the Women's\nConference on International Affairs (Point 3).\n8. Discussions with Bankers.\nLast week I had a long discussion with John Laylin\n(former Assistant General Counsel here in the Treasury)\non the Fund and the Bank and sold him on both plans.\nRegraded Unclassified\n120\n- 5 -\nHe is counsel for a number of important banks and indicated\nthat he would \"throw his weight\" to get them to modify their\nviews. Later, he arranged a dinner at which his father-in-\nlaw, a Mr. Morgan who is Vice President of the National City\nBank, as well as a Mr. Wasson, Vice-President of J. P.\nMorgan. Wasson came down to Washington from New York just\nfor the purpose of participating in this discussion. By\nthe end of the evening, both Wasson and Morgan were in\nagreement on the merits of the Bank and Wasson stated that\nhe was also prepared t o support the Fund. Mr. Morgan was\na great deal more conservative (one of these old gold standard\nadvocates) but it was clear that he was deeply shaken on the\nFund. He admitted its technical thoroughness but was still\nyearning for the days of the good old gold standard. In\nthese discussions Laylin was extremely helpful. Wasson urged\nus to prepare an annotation of the Bank and Fund Agreement\nwhich might be studied by bankers. He felt that a more\ncomplete explanation which might be possible in such\nannotation would be most helpful in educating the bankers\nwho are anxious to study it.\n9. Congressman Voorhis.\nAt Congressman Voorhis' request, Ness and I called on him\nyesterday and discussed at length the Fund and Bank. He\nindicated his willingness to support both proposals, and took\nnotes from which he intends to prepare a speech on the subject\nwhich he hopes to deliver before Congress recesses.\nQJL\nRegraded Unclassified\n121\nTHE AMERICAN FORUM OF THE AIR\nCOAST TO COAST MUTUAL BROADCASTING SYSTEM\nfir\n1627 K ST., N - W.\nWASHINGTON 6,D.C.\nMETROPOLITAN 0010\nTHEODORE GRANIK\nDIRECTOR\nAugust 17, 1944\nDear Mr. Secretary:\nThis will confirm your kind acceptance of our\ninvitation to participate in the American Forum of\nthe Air broadcast on \"The Meaning of Bretton Woods.\"\nThe program will originate from the Shoreham Hotel,\nWashington, on Tuesday, August 22, at 9:30 to 10:15\nP.M., E.W.T., and will be carried over the coast-to-\ncoast Mutual Network.\nThe other United States delegates to the Bretton\nWoods conference who will participate with you are\nMr. Harry D. White, Mr. Dean Acheson, Judge Fred M.\nVinson, Senator Charles W. Tobey, Representative\nBrent Spence, and Mr. E. E. Brown.\nI understand that Mr. Luxford is arranging a\npreliminary meeting for all the participants some\ntime Monday to discuss the format of the program.\nI shall look forward with pleasure to seeing you\nthen.\nWith kindest wishes,\nSincerely yours,\nThe Honorable Henry Morgenthau, Jr.\nSecretary of the Treasury\nWashington 25, D. C.\nDEDICATED TO DEMOCRACY'S IDEAL - THE FULL AND PUBLIC DISCUSSION OF ALL SIDES OF ALL ISSUES\nRegraded Unclassified\n122\nTO\nSECRETARY MORGENTHAU\nAUG 17 1944\nFROM MR. LUXFORD\nFOR YOUR INFORMATION\nYou requested a memorandum concerning the forty-five\nminute broadcast over Mutual Network's American Forum of the\nAir next Tuesday night.\nThe program will be conducted as a round-table discussion\non \"The Meaning of Bretton Woods.\" It is contemplated that you\nwill preside and that the other participants will be Judge Vinson,\nDean Acheson, Senator Tobey, Congressman Spence, Harry White\nand Ned Brown.\nIt is our present plan for you to open the discussion with\na short introductory statement of what happened at Bretton Woods.\nYou would then ask the questions and the other participants would\nexpress their views extemporaneously. We have worked up the\nattached set of questions and outline answers which have been\nsent to each of the participants. It also is contemplated that\nyou would make a short closing statement. These statements are\nin the process of preparation.\nRegraded Unclassified\n123\n- 2 -\nI am attaching a copy of the press release issued by\nthe Mutual Network on the subject.\nBefore you left for London we had definitely advised\nGranik that we would have a broadcast on August twenty-second\non the subject of Bretton Woods. We were not able at that\ntime to state definitely whether it would be a broadcast of\nthe type described above or whether it would be one involving\nyou, Keynes, Kung and Stepanov. We later learned that Keynes\nand Stepanov would not be available and then, pursuant to our\nprevious arrangements, we went forward on the American delegation\nbroadcast. I had understood that Fred Smith was taking the\nmatter up with you.\nCAR\nRegraded Unclassified\n124\nPress Information\nAMERICAN FORUM OF THE AIR\nCoast-to-Coast Mutual Broadcasting System\n1627 K Street, N. W.\nREpublic 5995\nFOR RELEASE\nIMMEDIATELY\n\"THE MEANING OF BRETTON WOODS\"\nTheodore Granik, originator and moderator of the Mutual Network's American Forum\nof the Air, announced that the broadcast of Tuesday, August 22, will be the first in\na series dealing with the recent International Monetary Conference at Bretton Woods,\nNew Hampshire. The participants in this first round-table discussion on \"THE MEANING\nOF BRETTON WOODS\" will be:\nHENRY MORGENTHAU, JR., Secretary of the Treasury;\nHARRY D. WHITE, Assistant to the Secretary of the Treasury;\nDEAN ACHESON, Assistant Secretary of State;\nJUDGE FRED M. VINSON, Director of the Office of Economic Stabilization;\nSENATOR CHARLES W. TOBEY, of New Hampshire, Ranking Republican Member of\nthe Senate Banking and Currency Committee;\nREPRESENTATIVE BRENT SPENCE, Democrat, of Kentucky, Chairman of the House\nBanking and Currency Committee; and\nB. E. BROWN, President of the First National Bank of Chicago, and Chairman\nof the National Advisory Committee to the Board of Governors of the Federal\nReserve System.\nFollowing this explanatory program, others dealing with the controversial issues of\nthe conference will be aired with members of the Senate and House of Representatives\nparticipating.\nGranik stated that his reason for scheduling such broadcasts is the seeming lack\nof understanding of the Conference by the man-in-the-street, and expressed the hope\nthat these discussions will result in a clarification of the questions in the minds\nof the American public regarding the Conference. It is also for this reason that the\nabove participants were chosen for the first of the series. All were delegates to\nthe Bretton Woods meeting.\nThe broadcasts will originate in the Mein Ballroom of the Shoreham Hotel starting\nat 9139 P.M., and are open to the public without charge.\n(30)\nRegraded Unclassified\n125\nQUESTIONS WHICH MIGHT BE USED AS\nBASIS FOR ROUND TABLE DISCUSSION\nON AMERICAN FORUM OF THE AIR.\n1. Now that a month has elapsed since the close of the Bretton\nWoods Conference and you have had a chance to mull it over,\nis there any particular point about the Conference that\nsticks out in your mind?\n[(a) the \"give and take\" spirit manifested by the\ndelegates of all countries;\n(b) convincing proof that the United Nations can\nand want to work together in peace as in war;\n(c) the fact that the nations of the world are\nlooking to the U. S. for constructive leader-\nship in the post-war world;\n(d) Russia's desire to cooperate with other nations;\n(e) the full historical meaning of the success of\nBretton Woods;\n(f) the success of international cooperation in the\nmonetary and financial field will determine the\noutcome of international cooperation generally;\n(g) the attitude of America toward the accomplishments\nof this Conference will indicate to the world\nwhether we are going to pursue a policy of full\ninternational economic cooperation, or one of\neconomic isolationism and dog-eat-dog competition\nin international economic relations.]\n2. This is a difficult question, but I would like someone to\ntackle it: In a few words, how would you describe the\nInternational Monetary Fund so the man-in-the-street could\nunderstand its over-all meaning?\n[(a) The Fund establishes machinery for stabilizing the\nexchange value of the currencies of the world. This\nstabilizing of currencies is of the very first\nimportance if we want 8. healthy development of world\nRegraded Unclassified\n126\n- 2 -\ntrade. It is necessary 80 that the American\nmanufacturer selling his products can count\non getting paid in currencies that will have\na stable value in relation to the dollar.\n(b) The Fund also estabiishes certain rules of the\ngame for foreign trade so that every country\nwill get a square deal financially in its trade\nwith other countries joining the Fund. Thus,\nnot only dies the American manufacturer selling\nhis products abroad want to be able to count on\ngetting paid in stable foreign currencies, he\nalso wants to have assurance that when he gets\npaid, no country is going to prevent him from\nexchanging his foreign currency for U.S. dollars.\nSimilarly, he wants to know that if businessmen\nin Country A are going to buy some machinery, that\nhe is going to have the same opportunity to sell\nthem that machinery and get paid as would a manu-\nfacturer in Country B. The Fund will constitute\none of the major instrumentalities for achieving\nthese goals.\n(c) In order to help member countries stabilize the\nvalue of their currencies, each member puts into\na common revolving fund gold and his own currency.\nFrom this common revolving fund members can draw\nforeign currencies in time of need, but as their\nposition improves they must restore what they have\ndrawn.\n(a) In a nutshell then, the Fund provides international\nmachinery for stabilizing the values of foreign\ncurrencies and for playing the financial game fairly\nin the field of foreign trade and commerce. If\ncountries which are fulfilling these obligations\nget into trouble, the Fund stands ready to make its\nresources available to help them over & crisis and\nto afford them a chance to work out their problems\nwithout resorting to \"sharp practices\" such as\ndepreciating currencies, imposing restrictions on\nthe payment for goods they have bought from other\ncountries and all the other tricks which Nazi\nGermany taught the world.]\nRegraded Unclassified\n127\n- 3 -\n3. I know the public would like to hear similar explanations of\nthe International Bank for Reconstruction and Development.\n[(a) The purpose of the Bank is to encourage investors\nin countries where capital is plentiful to lend\nmoney to borrowers in countries where funds are\nneeded but are not available. Loans in which the\nBank is interested will be only for the purpose of\nrebuilding industries, public utilities, etc., in\nwar devastated countries, and developing natural\nresources, public utilities and industries in under-\ndeveloped countries;\n(b) The principal activity of the Bank will be to\nguarantee loans made by private lenders, such as\nbanks and investment houses. In addition, where\nnecessary, the Bank will make some loans out of\nits own resources.\n(c) Each of the 44 United Nations will purchase shares\nof stock in the Bank. Only a small part of the\nvalue of each share will be paid immediately, and\nby far the larger part of the value of these shares\nwill not be paid at once but will constitute a\nreserve to support guarantees made by the Bank;\n(a) The liability of each member country is limited to\nthe value of the shares of stock in the Bank pur-\nchased by that country. Irrespective of the cur-\nrency loaned by the Bank, or loaned by private\ninvestors and guaranteed by the Bank, each member\nwill share in the risk in proportion to the stock\nit holds.]\n4. If there is no such Fund or Bank, will Americans be able to\ninvest abroad?\n[(a) Of course there would be some investment\nwithout the Bank and the Fund, but there\nwould not be nearly as much, or for that\nmatter, nearly enough to meet pressing needs.\nInvestors in this country remember too well\nwhat happened to their investments abroad\nRegraded Unclassified\n128\n- 4 -\nafter the last war. In fact, one of the chief\nreasons for the Bank is because there will be\nso little investment abroad without it. Investors\nwill not lend unless they are assured of the return\nof their money and a reasonable rate of interest.\nThis is precisely the function of the Bank.\n(b) By stabilizing exchange. rates and removing restrice\ntions on transactions in foreign currencies, the\nFund also will encourage foreign investments.\n(c) By increasing trade and income generally the Fund\nand the Bank will promote an expansion of inter-\nnational investment.\n5. What effect will the Fund and Bank have upon moneys owed\nto America by foreign countries, such as the debts arising\nfrom the First World War?\n[(a) Neither the Fund nor the Bank are being established\nto handle old debts. They are not intended to deal\nwith war debts arising out of either World War I or\nWorld War II.\n(b) After the last war this country attempted to lift\nitself by the bootstraps by loaning countries the\nmoney with which to pay their debts to us. As we\nall know, it was a sad experience and one which\nwill not be repeated in the Fund and Bank.\n(c) Fund and Bank are concerned, rather, with getting\nthe war torn and underdeveloped countries of the\nworld back on their financial feet and establish\nthem again as going concerns. Their tasks are\nconfined to the opening up and maintenance of\ntrade and with the reconstruction and development\nof the devastated and underdeveloped countries of\nthe world. These are man-sized tasks by themselves\nwithout attempting to burden these institutions with\nthe liquidation of war debts.\n129\n- 5 -\n6. I don't that the American public fully realizes what\nthe Fund and the Bank mean in terms of American foreign\ntrade. How do you think they will affect our foreign trade?\n[General] [(a) Important to bear in mind the tremendous productive\ncapacity of this country, particularly as it has\nbeen developed during the war. If we are going to\nkeep these enormous productive facilities in opera-\ntion and thus our people employed, it is imperative\nthat we have a high level of foreign trade. Other-\nwise this country will be ripe for a real depression.\n(b) Both Fund and Bank are designed to maintain level of\nworld trade at high levels--much higher in fact\nthan was ever the case before the war.\n(c) Keep in mind that an economically stable and prosperous\nworld is the best insurance for prosperity in the U.S.]\n[Effect of the Fund on American foreign trade:\n(a) Other countries, not the United States, have engaged in\npernicious currency practices which restrict trade.\nThese practices will be outlawed;\n(b) Currency values will be stabilized which means that\nwhen the American exporter sells $10,000 worth of\ngoods abroad he will get foreign currencies worth\n$10,000 in return;\n(c) Countries having temporary currency difficulties\nwill have access to the Fund to enable them to\nsolve their problems without stifling trade.]\n[Effect of the Bank on American foreign trade:\n(a) Most of the borrowers whose loans will be guaranteed\nor made by the Bank will need U.S. dollars to purchase\ngoods in this country. This will increase American\nexports.\n(b) When the productivity of other countries is increased,\nthe people of those countries will have larger incomes\nwith which to buy American products.]\nRegraded Unclassified\n130\n- 6 -\n7. Would the establishment of a Fund mean more government\ncontrols over foreign trade--does it mean, as some have\nhinted--that foreign trade would have to be taken over\nby government agencies?\n[(a) The Fund would mean less government controls, not\nmore. Controls over exchange transactions would\nbe removed and no new controls are required;\n(b) The Fund will not operate in exchange markets nor\nwill it deal with individual traders. It will\nneither control nor compete with private traders;\n(c) The U.S. leaves its traders free to buy and sell\nwhere they please and operate under the rules of\nfree competition. This right can be effective only\nif other countries do not restrict the freedom we\ngive our traders. The U.S. can insure such freedom\nonly through international cooperation. Thus,\nrather than increasing government controls, the\nFund is an effective way of reducing the exercise\nof such controls by other countries.\n8. Will the Bank control or compete with private investors?\n[(a) The Bank will not control private investment because\nit will act only when its guarantee is sought by\ninvestors, or its participation is sought by borrowers;\n(b) It will not compete with private investors, but will\nassist them by guaranteeing their loans and will only\nlend funds to borrowers who are unable to obtain funds\nfrom private investors on reasonable terms.]\n9. Since the Fund and Bank mean a real increase in our foreign\ntrade, it is clear to me that they both spell \"jobs\" for\nAmerican workers and returning soldiers. What do you think\nabout this?\n[(a) Expanding trade means larger exports from the United\nStates and it has been estimated that 5,000,000 addi-\ntional jobs could be provided by industries which\nincrease their production in order to supply the\nexport trade;\nRegraded Unclassified\n131\n- 7 -\n(b) An increase in our foreign trade will mean an increase\nin our national income, and as purchasing power\nincreases, production expands and more jobs are\ncreated.]\n10. Well, how about the American farmer? You know I am a farmer\nand we farmers need 8. healthy world market for our products\nif we are going to raise all we can and be able to sell it\nat decent prices.\n[(a) United States farmers export about a billion dollars\nannually in agricultural commodities, and many times\nthat amount in exports of which agricultural products\nform a part;\n(b) A slight variation in the value of foreign currencies\nmay result in a serious loss to farmers because:\n(1) if the value of foreign currencies dropped,\nother countries could buy our agricultural\nproducts only if we lowered our prices; or\n(2) if we maintained our price level we might\nlose foreign markets entirely. The U.S.\nmarket would then be glutted with reper-\ncussions on domestic prices\n(c) Farmers will benefit directly from the increase in\nworld trade which will result from the establishment\nof the Fund and the Bank. In addition, farmers will\nshare with other segments of the population in the\ngeneral benefits of world peace, world prosperity,\nand higher standards of living.)\n11. What will be the amount of the U.S. subscription to the\nFund and the Bank?\n[(a) The United States will subscribe $2,750,000,000 to\nthe Fund and $3,175,000,000 to the Bank--a total\ninvestment of less than $6,000,000,000. Of this\namount approximately $3,000,000,000 will not be paid\nin cash but will be a contingent liability which may\nnever have to be paid;\nRegraded Unclassified\n132\n- 8 -\n(b) This is not a \"contribution\" and not a \"cost,\"\nbut an \"investment\" in world peace and prosperity\nwhich will remain intact and may even pay a direct\nprofit to the United States;\n(c) The United States is presently spending over\n$7,000,000,000 each month in the prosecution of\nthe war. Thus, our investment in world peace\nand world prospecity would be less than one month's\nexpenditures during the war. This is a small price\nto pay for the benefits which will result from the\ntwo institutions.]\n12. Is there any guarantee in the plan that we won't have to\nput up more billions when the original sums have been\nexhausted?\n[(a) Under Fund and Bank proposals our liabilities are\nlimited to the original subscriptions and this\ncountry cannot be required to put up one additional\ndollar unless it wants to.\n(b) Since the uses to which the Fund's resources are\nput are strictly limited, and since it is in the\nnature of 8. revolving fund, in the opinion of experts,\na Fund of $9 billion is regarded as adequate to meet\nrequirements.\n(c)\nIt is, of course, not impossible that the Fund may\nat some time be temporarily short of dollars. If\nthat contingency should occur, the Fund would still\noperate in the other forty or so currencies it holds.\nOf course we could, if we were satisfied it was in\nour own national interest, lend the Fund more dollars--\nbut this would be a decision for us to make at that time.\n(a)\nLikewise, in the case of the Bank, we might want to\nexpand its subscribed capital after it had proved\nitself to be a success.\n(e)\nIn no case would we provide more money to the Fund\nor the Bank unless they proved to be generally\nbeneficial, and financially successful institutions\nand unless we decided it was in the American interest\nto do so.]\nRegraded Unclassified\n133\n- 9 -\n13. What about the vast sums of gold that our Government has\nstored up? Will they be used in this plan?\n[(a) The Fund and Bank provide for a portion of each\ncountry's subscription to be paid in gold. Only\na very small fraction of our gold would be included\nin our subscription, however.\n(b) The Fund recognizes the importance of gold in the\nfield of international finance and guarantees to\ngold the same position it has commanded throughout\nthe world for centuries. Thus, under the Fund pro-\nposal the value of each member's currency is to be\nfixed in terms of gold. Moreover, each country can\nbuy any currency from the Fund for gold, and each\ncountry guarantees to sell its currency to the Fund\nfor gold. Therefore, the United States can always\nuse its huge reserves of gold to buy any other cur-\nrency under the Fund agreement.)\n14. Will any of these moneys be used for relief purposes abroa\nanything like an international WPA?\n[(a) The Fund has nothing to do with either relief,\nrehabilitation, or reconstruction. The provision\nof money for relief and rehabilitation is the\nresponsibility of UNRRA. The Bank is intended to\nfinance sound reconstruction projects, but they\nare no more WPA projects than are the loans of any\nprivate bank. Thus, while Bank loans will, of\ncourse, provide jobs, loans will not be made for\nthe purpose of providing jobs.\n(b) The Fund and the Bank are permanent institutions\nand not simply designed to handle problems of the\nimmediate post-war.]\n15. Someone recently stated that the U.S. would be pouring that\nmoney down 8. \"rat hole\" if we joined the Fund and the Bank.\nWhat do you say about that?\n[[a) To characterize this country's participation in the\nFund and Bank as \"pouring money down a rat hole\" is\ntypical of the taetics which isolationists and defeatists\nRegraded Unclassified\n134\n- 10 -\nare bound to employ in their efforts to defeat\nthese proposals.\n(b) It is time that all of us focused on the real\n\"rat hole\" of war and this time be prepared to\ninvest some money in rat poison.\n(1) To date, this war has cost the taxpayer\nover $200 billion dollars. Before it is\nover and by the time you include pensions\nand other indirect costs, it will cost us\nseveral times that amount.\n(2) To date, this war has cost us 300,000\ncasualties. Before it is over it will\ncost us far more lives and other casualties.\n(8) The cost of the war to the world will have\nto be calculated, not in millions, not in\nbillions, but in trillions of dollars, and\ntens of millions of lives and injuries will\ngo down this \"rat hole.\"\nThese figures show us the real \"rat hole\" into\nwhich the lives of our men and our money is being\npoured.\n(c) Against these staggering losses from war, the Fund\nand the Bank represent investments in peace. This\ncountry is asked to invest $6,000,000,000--less than\nthe war costs us each month--in an insurance policy\nagainst World War III. It is a sound investment if\nit offers even a reasonable chance of avoiding another\nwar. It would be a sound investment in peace even\nthough we were to lose the whole amount. We are\ninvesting in \"rat poison\" to exterminate future rats\nlike Hitler and Hirohito before they rise up to\nplague us. It is an investment in cleaning up the\nbreeding grounds of such rats.\nRegraded Unclassified\n135\n- 11 -\n(a) However, there is no justification for assuming\nthat the U.S. will lose whatever it invests in\nthe Fund and the Bank. Every possible precaution\nwas taken at Bretton Woods to protect both\ninstitutions against loss and to insure them\nagainst abuse. If notwithstanding all of the\nprotective measures which were taken, critics\nstill maintain that our investment is \"pouring\nmoney down a rat hole, then those critics are\nreally saying that any attempt at international\neconomic cooperation is doomed to failure from\nthe start. They are really stating that the U.S.\nshould again don the mantle of economic isolationism\nand leave a sick world with no other prescription\nthan that of Drs. Hitler and Goebbels.\n(e) We should not get too alarmed about their outcries\nin any event. The public will not forget that\nbefore Pearl Harbor these same voices which are\npresently crying that we are \"pouring money down\na rat hole,\" were shouting that we were throwing\nour money away in appropriating it for national\ndefense and for Lend-Lease. These voices are now\njust as unprepared for peace as history shows they\nwere unprepared for war.]\n16. If the U.S. is going to be the principal country able to\nfurnish the goods for reconstruction in the early post-war\nyears and since this means that U.S. dollars will have to\nbe furnished by the Bank to buy these goods, why should\nwe turn to an International Bank? Why not establish 8.\nnine billion dollar U.S. Bank for Reconstruction and\nDevelopment and run it ourselves?\n[(a) Precisely because the bulk of the loans will be\nin U.S. dollars and for the purchase of U.S.\ngoods it is important for the United States to\nhave an international bank rather than a United\nStates bank. If such a U.S. bank guaranteed a\nU.S. loan it would mean that the United States not\nonly provided the capital but assumed the entire\nrisk of loss. When an international bank guarantees\na U.S. loan it will mean that 44 nations guarantee re-\npayment to the private U.S. investors.\nRegraded Unclassified\n136\n- 12 -\n(b) The privilege of having such a U.S. instead of an\ninternational bank would increase our liability by\n$6,000,000,000.\n(c) The creation of such a U.S. bank would be a step\naway from international cooperation and toward\neconomic isolation. It would constitute a threat\nto the whole world that the United States was\nembarking on a large scale adventure into dollar\ndiplomacy.]\n17. What do the Fund and Bank mean in terms of world peace?\n[(a) Economic warfare is the forerunner of war. The\nFund and the Bank are an important step in the\nabolition of economic warfare;\n(b) Economic instability leads to totalitarian forms\nof government and all the evils of Naziism and\nFascism;\n(c) War torn countries must achieve political stability\nand they can do this only if their economies are\nstable;\n(a) To obtain stable economies, war torn countries need\nequipment to reconstruct their industries and provide\njobs for their citizens;\n(e) All countries that have been seriously damaged by the\nwar or have had their economies disrupted can be\nproperly adjusted to peace only if there is reason\nfor them to be confident that their economic structure\nwill be restored;\n(f) The maintenance of peace is dependent to a large\nextent on the successful establishment of\nInternational economic cooperation.]\nRegraded Unclassified\n137\n- 13 -\n18. What is the alternative to not having the Fund and the Bank?\n[(a) The way of the Fund and the Bank is the way of\ninternational cooperation. The representatives of\n44 nations, after examining many alternatives,\ndecided that the Fund and the Bank, as presently\ndrafted, represent the most workable and generally\nacceptable plan for the solution of the world's\nmonetary and financial problems;\n(b) The alternative to the principle of cooperation is\neconomic isolationism which destroys trade, reduces\nliving standards, and is a major factor in making wars;\n(c) The fai lure of international cooperation in the field\nof monetary relations will seriously jeopardize, if\nnot render impossible, international cooperation in\nother fields of economic relations. If the world\nfails in solving its international economic problems,\nit will fail in solving its political problems. The\nprice of such a failure is another world war.]\n8/15/44\nRegraded Unclassified\n138\n8/17/44\nRESUME OF DAILY NEWSPAPER EDITORIAL OPINION\nON THE BRETTON WOODS CONFERENCE\nHostility toward and suspiciousness of the Bretton\nWoods conference were somewhat widespread among newspaper\neditorial writers prior to the opening of the conference\nand during the early stages of the deliberations.\nAs the conference drew toward a close, there was\nsomething approaching unanimity -- excluding newspapers\nof extreme isolationist or partisan label -- in the\neditorial endorsement of its purposes.\nFollowing signing of the Stabilization Fund and\nWorld Bank agreements, editorial pages in large majority\nrecognized these agreements as highly significant\nachievements in international cooperation. A consider-\nable majority did so enthusiastically, though usually\nwithout specifically approving the details of the two\nplans.\nMany editorial writers took occasion to stress the\nfact that responsibility for giving final effect, 80\nfar as this nation is concerned, to this pioneer example\nof international collaboration now rests on Congress,\nand to urge that Congress approach the duty in a spirit\nadequate to the issue's vital importance to mankind.\nOn the whole, Bretton Woods has received generally\nsounder editorial attention in the daily press than any\nother topic of such scope in recent times, exclusive of\nthe war itself. Many editorial writers were at pains\nto explain the subject to their readers objectively in\nmore or less detail, as well as to comment on it. There\nhas been no pronounced geographical division of sentiment.\nSniping at the conference, and unreasoned, uninformed\nRegraded Unclassified\n139\n- 2 -\nattacks on it, simmered down to comparatively few metro-\npolitan newspapers which plainly had \"axes to grind.\"\nThe superior quality of the editorial treatment of\nthe conference doubtless has been due in part, at least,\nto the generally excellent news coverage which it\nreceived. There were numerous editorials commending\nthe policies toward the press which were pursued at the\nconference.\nThe superior quality of discussion is typified in\nan editorial printed July 24 by the Boston Herald, Under\nthe heading \"A Foundation Stone\":\n\"Whatever the fate may be of the monetary\nagreement reached at Bretton Woods, New Hamp-\nshire, something monumental and perhaps his-\ntoric has been accomplished. In the midst of\na global war raging in unexampled fury, 700\nspokesmen of 44 nations gathered in a spirit\nof inquiry and compromise and outlined a\nprogram to stabilize the economy of the world.\nThat in itself is a notable achievement.\n\"Although all the groups saved their\nexceptions and the plan will have no binding\neffect until nations holding 65 percent of\nthe $8,800,000,000 fund give their sanction\nformally, we have had a plenary, even if pre-\nliminary session of & 'parliament of man.\nThis document may not be a keystone or a\ncornerstone, but it is at least a foundation\nstone of a temple of peace. The nations are\nanticipating the onrushing problems of peace\nbefore winning the war. They have engaged\nin a grand effort at planetary arbitration\nof immemorial disputes. Regarded merely as\na symbol, & pattern of international coopera-\ntion, the conference was momentous. Hopeful\nAmericans will see in its apparent success a\nsign that the United States is prepared to\nRegraded Unclassified\n140\n- 3 -\nassume hereafter that role of leadership which\nour size and power and world circumstances\nhave decreed.\n\"To pass dogmatic judgment on the merits\nof the tentative agreement would be presump-\ntuous. It is 80 long -- about 15 newspaper\ncolumns -- 80 intricate and 80 far reaching\nthat its flaws and virtues cannot be appraised\nuntil experts examine it minutely. Fortunately,\nthere will be plenty of time for that, as it\ncannot become effective, if at all, prior to\nMay first, 1945. It must be brought down,\nsomehow, to the comprehension of the person\nof average intelligence, for the reaction to\nit in and out of Congress will determine its\nadvisability.\n\"Here is a task which should engage the\nclose attention of educators and all leaders\nof public opinion from now on, for many of\nthe ailments which it is designed to cure go\nto the very essence of permanent peace. If\nthere are eloquent missionaries and persuasive\napostles in the ranks of those public and\nprivate agencies which long for the establish-\nment of conditions minimizing the possibility\nof another conflict destructive of civiliza-\ntion and Christianity, this is the time for\nthem to go forth and preach their gospel.\"\nThe Hearst newspapers, the New York Times, the\nProvidence (R. I.) Bulletin, the New York Sun, the\nChicago Tribune-New York News-Washington Times Herald\ncombination, the Wall Street Journal, and a few lesser\npublications were centers of irreconcilable opposition\nto the conference and its works. Their editorial view-\npoints ranged from last ditch isolationism or extreme\npartisanship through insistence on \"consultative\ncouncils,\" \"return to the gold standard,\" \"bilateral\nagreements,\" \"currency blocs,\" reliance on private bank-\ning enterprise and a few still more nebulous themes.\nUnclassifie\n141\n- 4 -\nFAVORABLE COMMENT ON THE RESULTS:\nBaltimore Sun, July 17 - \"The Bretton Woods agree-\nment on a plan of currency stabilization represents an\nimportant contribution to the organization of the post-\nwar world.\"\nChristian Science Monitor, Boston, July 17 - The\nBretton Woods agreement on a stabilization fund \"will\nprobably have tougher sledding in the ruts of American\npolitical thinking than anywhere else. Senator Taft\nhas already predicted rejection of the plan. But that\nwill not happen if the American people are awake to the\nadvantages of monetary stabilization. It will not\nhappen if Americans, instead of suspiciously assessing\nthe gains other nations may reap from the plan, look\nat its usefulness to America and the American standard\nof living. What matters today to the American voter,\nwith a post-war job to look after, is that the plan\nhelps to create the kind of world market in which his\njob is safe, in which his wage scale is buttressed by\nmobilization of world credit resources. Can he make\nhis Congressman see his point?\"\nEaston (Pa.) Express, July 18 - The stabilization\nfund agreement is the \"first real test of the interna-\ntional cooperation that must be attained if the peace\nis to be nurtured and kept, once it is won on the\nbattlefield.\"\nChicago Sun, July 19 - \"The issue becomes specific:\nAre the people and Congress for or against Bretton\nWoods? Currency stabilization is a technical subject,\nbut anybody can understand the almost inevitable result\nif some agreement embodying the Bretton Woods prin-\nciples was rejected.\"\nSt. Louis Post-Dispatch, July 17 - \"If Congress\ndoes not approve the adopted (currency stabilization)\nRegraded Unclassified\n142\n- 5 -\nplan -- and the prevailing opinion is that it will not --\nit will be derelict in its duty unless it achieves\npretty much the same ends.\"\nDallas (Tex.) News, July 18 - \"Our Congress is not\nexpected to act on this issue until after the presiden-\ntial election, but ratification seems assured. The\nissue is not a partisan one\nNewark (N. J.) News, July 18 - Agreement on the\ncurrency stabilization plan \"is & notable achievement\nin international collaboration\nSo far as this\ncountry's participation is concerned the final decision\nnow passes to the Congress. It places & grave respon-\nsibility upon that body for what it does in this\nmatter will be taken as the measure of confidence that\ncan be placed in our adherence to provisions of the\nAtlantic Charter.\"\nSt. Louis Globe-Democrat, July 17 - \"Of signifi-\ncant importance is the fact that an agreement of any\nsort has been reached. Secretary Morgenthau regarded\nit as an 'omen of the international cooperation we may\nexpect when we sit around the peace table.' To such\nextent may the conference be reported as 8. distinct\nsuccess.\" (Sharp criticism of conference previously\nexpressed by this newspaper.)\nCorpus Christi (Tex.) Caller, July 19 - \"There is\nno reason to believe that & world stabilization fund\noperated by and for nations that are conscientiously\ntrying to put their domestic economic house in order\nwould show a loss\nAny nation that sabotages or\nwrecks the great underlying principles (of the plans)\nmay easily be taking on the responsibility for making\na third world war.\"\nPhiladelphia Inquirer, July 17 - Agreement by the\ndelegates on quotas for the stabilization fund \"is 8.\nconsiderable accomplishment for the Bretton Woods\nparley.\" (This newspaper was among frequent critics\nof the conference.)\nRegraded Unclassified\n143\n- 6 -\nBaitimore Sun, July 24 - The two plans \"look to the\neffectuation of nighly desirable post-war purposes.\"\nPhiladeiphia Record and Camden (N. J.) Courier,\nJuly 24 - The dominant fact emerging from Bretton Woods\nwas: \"There is among the United Nations the will and\nthe brains to plan and construct cooperatively an\ninternational good housekeeping and orderliness\nWe\nhave planned together for sane money. We are planning\nin other fields. We are planning early. That is the\nbig hope for the future\nThe disagreement on ways and\nmeans was resolved in the spirit summed up by Secretary\nMorgenthau: 'Today the only enlightened self interest\nlies in international accord.'\nCharlotte (N. C.) News, July 22 - One of the hope-\nful signs of a lasting peace is that the nations repre-\nsented at Bretton woods \"adopted a spirit of give-and-\ntake, evinced a willingness to make individual con-\ncessions.\"\nLouisville Courier Journal, July 23 - \"If we fail\nto accept the point that the United States must work\nwith the rest of the world on a common footing, then\nwe shall betray as sterile and false all our profes-\nsions of readiness to labor for amity and agreement in\nany other relationship.\"\nAtlanta Constitution, July 24 - \"A world grown\ncynical in the decade of apathy and appeasement which\nimmediately preceded -- and undeniably precipitated --\nthe present holocaust finds new nope in the unqualified\nsuccess of the United Nations Monetary Conference.\"\nRussia's voluntary increase in her contribution to the\nbank's capital is \"a positive indication of the Soviet's\nintention to cooperate wholeheartedly for world peace\nand unity\" and should serve to allay \"fears of pro-\nfessional pessimists that Russia will remain a post-war\nenigma.\"\nRegraded Unclassified\n144\n- 7 -\nPortland (Ore.) Journal, July 22 - The Bretton\nWoods agreements \"point to a better world order and\nconstitute at least a step in the direction of more\nharmony among nations. In this light, the effort has\nbeen justified.\"\nManchester (N. H.) Union, July 25 - It should not\nbe forgotten that \"some such machinery as was proposed\nat Bretton Woods has a vital relation to world peace.\"\nSt. Louis Globe-Democrat, July 24 - With regard to\nratification of the Bretton Woods agreements, \"perhaps\nno piece of legislation will come before this session\nwhich is more vital to the world's post-war prosperity.\nThe plan must not be swept aside without thorough\nstudy.\"\nSt. Louis Post-Dispatch, July 23 - \"By agreeing\nupon plans for a world bank of reconstruction and\ndevelopment, the international monetary conference at\nBretton Woods has completed the work on its agenda and\naccomplished more than any except the most ardent\noptimists had expected Whether the nations can work\ntogether at the law-making level remains to be seen\nWill the same sense of indispensability and urgency\nwhich animated the conference of experts animate the\nrespresentative assemblies in Washington and London?\"\nPittsburgh Post-Gazette, July 24 - Even Congress-\nmen may need the advice of financial experts before\nthey can vote on the agreements intelligently\nAs\nfar as the purposes of the program are concerned, they\nwill meet with the overwhelming approval of the American\npeople.\"\nDetroit News, July 25 - The results of the confer-\nence, \"laboriously worked out in detail, are entitled\nto be respectfully received as a monumental attempt to\nlay & monetary basis for the coming peace era\nWe\nhope and pray that narrow, selfish or partisan opposi-\ntion will not decide the outcome.\"\nRegraded Unclassified\n145\n- 8 -\nRichmond (Va.) Times-Dispatch, July 26 - The agree-\nments \"constitute 8. venture in international coopera-\ntion\nfor whose success few will fail to hope.\nPortland (Ore.) Oregonian, July 27 - As to the\nstabilization fund, \"the harmony among experts from\nforty-four nations ought to clear away doubts that are\nfounded only upon failure to understand how the fund\nwill operate, or upon mere suspicion that because the\nUnited States is the wealthiest of all participants,\nits resources are being raided.\" (This newspaper pre-\nviously criticized conference severely.)\nMilwaukee Journal, July 30 - \"Is it too much to\nhope that this time Congress will take 8. broad view,\nor must we again be humiliated before the world by the\ninfantile agreements of our Nervous Nellies?\"\nWall Street Journal, July 25 - The conference\nexperts \"have produced blueprints of two pieces of\nmachinery -- the Stabilization Fund and the Interna-\ntional Bank -- which are quite simple as far as they\ngo\nThe Conference has given us at least a partial\npicture of one of the problems ahead, and that is,\nafter all, something that may be counted worth the\ntrouble.' (This newspaper was highly critical of the\nconference as a rule.)\nWashington Evening Star, July 25 - Considerations\ngiving rise to \"considerable skepticism\" over the agree-\nments seem \"heavily outweighed by the entries on the\ncredit side of the Bretton Woods ledger.\" The mere\nfact that an agreement was reached is \"a hopeful indi-\ncation of a trend toward international cooperation\"\n\"It is surely no exaggeration to say, as the Secretary\nof the Treasury has said, that we are at the crossroads\nand we must go one way or the other.\"\nRegraded Unclassified\n146\n- 9 -\nUNFAVORABLE COMMENT ON RESULTS:\nCincinnati Times-Star, July 17 - Among reasons for\n\"public apathy\" toward the conference, the \"most impor-\ntant of all is the suspicion that the conclusions at\nBretton Woods will be embodied not in 8. treaty which\ncan be debated and passed on by the Senate, but in one\nof those executive agreements which could be railroaded\nthrough Congress with a bare majority.\"\nBaltimore News & Post, July 18 - The delegates of\nforty-four invited nations at Bretton Woods \"are con-\nsidering ways and means of tapping after the war the\nreservoir of Uncle Sam's well-known generosity. The\nconference is dealing with a \"proposed international\nUtopian financial structure.\" (This is a Hearst paper.)\nProvidence (R. I.) Journal, July 22 - The bank\nplan \"ignores such fundamental considerations as selec-\ntivity of risks and cautious appraisal of past records.\"\nNew York Sun, July 21 - The currency stabilization\nplan is built upon \"obvious economic absurdities\nUnless we can dictate the conditions under which we shall\nlend, we stand to lose our gold and our goods and to give\nno lasting help to anybody.\nNew York Sun, July 25 - \"A basic weakness of the\nmonetary scheme that has emerged from Bretton Woods is\nthat it permits a borrower to be the judge of his own\ncredit.\" The currency stabilization plan \"expressly\npermits currency devaluation\" and imposes no rule of\nconduct on the borrower.\nNew York Times, July 18 - \"Unfortunately, in the\nproposals that the Administration has sponsored at\nBretton Woods, it has failed to show clarity of thought.\nThe result is a plan confused in its objectives and\nhazardous in its possibilities. The delegates at Bretton\nRegraded Unclassified\n147\n10 -\nWoods -- above all the American delegates -- seemed to\nbe obsessed by the idea of machinery.\"\nNew York Times, July 19 - \"World economic revival\nwill not necessarily flow from a plan under which tax-\npayers are saddled by their own Governments with losses\nfrom huge foreign loans made regardless of their sound-\nness. It is likely, rather, to flow from & situation\nin which each country, or each industrial venture in it,\nis encouraged or forced to follow sound policies in\norder to attract foreign investors.\"\nNew York Times, July 24 - The monetary fund final\nagreement \"meets none of the fundamental criticisms\nthat applied to the tentative agreement. A vast machinery\nis provided which is confused in its objectives The\nproposed agreement ignores all basic principles which\nmust be adopted if such machinery could hope to be suc-\ncessful. The American money poured into supporting weak\nforeign currencies will be worse than wasted, unless\nthe loans are made conditional upon internal reforms\nin the borrowing nations\nThe United States must take\nthe lead in these reforms.'\nProvidence (R. I.) Journal, July 25 - \"In the\nabsence of insistence that the signatory nations shall\nput their domestic fiscal house in order and thereby do\neverything possible to assure the stability of their\ncurrencies, there is little likelihood that interna-\ntional exchange can be stabilized for any considerable\nperiod\nThe compromise we made between the alleged\ndomestic necessities of member nations and the plain\nrequirements of a soundly-conceived, practically based\nexchange stabilization plan faces almost certain defeat\nin Congress.\"\nSENATOR TAFT'S ATTACK:\nSenator Taft received almost no editorial support\nwhatever in his attack of July 11 on the conference\nRegraded Unclassified\n148\n- 11 -\nproceedings. Typical of editorial replies to the Senator\nwere the following.\nCincinnati Enquirer, July 13 - \"It is very regret-\ntable, to say the least, to find Ohio's Senator Robert A.\nTaft predicting in advance that Congress will not\napprove the recommendations of the United Nations Mone-\ntary Conference at Bretton Woods\nThis smacks strongly\nof the isolationism and opposition to international\ncooperation to keep the peace which was so characteristic\nof Senator Taft's prewar attitude\nIt is greatly to\nour advantage if it is not outright essential to have\nthe world's finances in a reasonable state of equilib-\nrium. And to us it seems elemental -- although the\npoint seems to escape Senator Taft -- that this can be\nachieved much better through a United Nations bank and\ninternational monetary fund supported morally or\nfinancially by all the nations, than if we go back to\nthe 'Uncle Shylock' policy.\"\nMiami (Fla.) News, July 15 - The Taft statement is\nthe \"first shot in 8. new war for isolation.\"\nCorpus Christi (Tex.) Caller, July 19 - \"The sub-\nstance of Taft's argument and of the U.S.C. of C. is\n'let's go back to the system of the 20s when gold was\nking and bankers did as they pleased, calling for gov-\nernment support only in cases where monetary credits\nare risky.' Everyone knows where that policy led the\nUnited States and the world. It led first to economic\nchaos, which fertilized the seeds of war.\"\nSOME EARLY EDITORIAL COMMENT:\nThe following quotations are from editorials\nprinted before the conference began work, or during the\nearly stages of its work:\nWashington Post - \"The intermational monetary and\nfinancial conference at Bretton Woods opened with an\nauspicious candor.\"\nRegraded Unclassified\n149\n- 12 -\nLouisville Courier Journal - \"We are to put in some\ntwo and one-half billions of dollars. A quick restora-\ntion of trade and economic activity can be worth ten\nor twenty times that sum within a few years.\"\nHartford Courant - \"A nation embarked on & sound\ndomestic policy should have no need for the Interna-\ntional Monetary Fund.... In the long view, a premium is\nplaced on reckless public finance and a penalty on\nprudent policy.\"\nBoston Globe - \"Important as are the batties now\nraging in Europe and in the East, the conference at\nBretton Woods certainly ranks with them.\"\nWinston Salem (N. C.) Journal - \"If the United\nNations demonstrate in these and other cooperative\nundertakings that they can plan for peace as well as\nthe totalitarian aggressors planned for war, there is\nno question but that we shall win the peace.\"\nRichmond (Va.) Times-Dispatch - Congress should\nconsider \"that should it decide to reject the monetary\nprogram in toto, as a few of its members have suggested\nalready, the United States would suffer a loss of\nprestige from which it might not recover.\"\nSyracuse (N. Y.) Post Standard - \"The conference\non world monetary policy now starting at Bretton Woods\nmay well determine whetner we are going to have an\nuneasy peace after the war or one that will last.\"\nSpringfield (Mass.) Republican - The conference \"is\na wise attempt to get a substantial area of interna-\ntional economic cooperation covered before the end of\nthe military phase of the war.\"\nNew York Herald-Tribune - \"Some of the basic criti-\ncisms are: That the fund contemplated is too big; that,\nRegraded Unclassified\n150\n- 13 -\nwhile most of the real contribution would be made by the\nUnited States, policies would De determined by debtor-\nminded nations; that the fund is totally unadapted to\nthe transition period; that the so-called 'quota system'\nis an open invitation to currency and credit abuses;\nthat the United States might soon find itself having to\nface the responsibility for the breakdown of the scheme\nif, when its supplies of currency were exhausted, it\nrefused to put up more; that the sound approach to\nstabilization is the 'key country' approach; and last,\nbut not least, that the so-called 'currency stabiliza-\ntion' fund would not stabilize currencies.\nNew York Journal of Commerce - \"The view is widely\nheld that the parley is tilting at windmills\nLos Angeles Times - \"Currency stabilization is a\nsubject that leaves most people cold.\"\nWashington Post - As \"insurance against the alter-\nnative of almost certain currency chaos and trade\nparalysis, a monetary fund justifies assumption of\nrisks by 8. powerful trading nation, provided the risk\nis not indefinite or excessive.\"\nProvidence (R. I.) Journal - \"If the Bretton Woods\nconference, by its action, affords evidence that the\nfundamentally mistaken nationalistic policies of the\npast in the economic sphere will have no place in post-\nwar international planning, the world will at least be\nheading in the direction of economic freedom upon which\nthe peace and prosperity of mankind 80 largely depend.\"\nTucson (Ariz.) Star - Without some general agree-\nment, \"we will face an international anarchy in finance\nthat would prolong the period of lend-lease and post-\npone the time when we would get paid for what we would\nsell.\"\nSouth Bend (Ind.) Tribune - \"The average American\nis finding it difficult to understand the technicali-\nties (of the conference subject matter), but compre-\nhension of the vital nature of the stabilization project\nis not lacking.\"\nRegraded Unclassified\n151\n- 14 -\nBaltimore Sun - \"Monetary chaos is the enemy of trade\nbetween nations\nand ultimately endangers the peace.\"\nNew Britain (Conn.) Herald - \"The outlook is that\nthe world, as the result of the Bretton Woods confer-\nence, will give a trial to new ideas.\"\nTampa (Fla.) Tribune - \"We try to fathom the issues,\nbut can't always make the grade. However, we do appre-\nciate the fact that, no matter how complicated and\ntechnical these monetary discussions may seem, they are\nfilled with meaning for ordinary men and women in all\nparts of the world If a workable program for stabil-\nizing world finances can come out of the Bretton Woods\nconference, all of us will be indebted to the financial\nexperts, even if we don't know exactly why.\"\nGreat Falls (Mont.) Tribune - \"As the economists\nand financiers argue and disagree and negotiate, few\npeople can follow the trend of their discussions. But\nthis we know: That unless the nations of the earth are\nable to trade back and forth freely and can avoid\nfinancial and economic warfare, the terms of peace\nagreements will be futile.\"\nRochester (N. Y.) Democrat & Chronicle - \"The whole\nidea thus boils down again to the question of practical\ngood neighooriiness, on which we have placed 80 much\nstress in this war\nIf there are some risks in the\nplan outlined, they appear to be minor in comparison\nwith the larger purpose.\" (This is the leading news-\npaper of the Frank E. Gannett chain.)\nDavenport (Iowa) Democrat & Leader - \"If a way can\nbe worked out to eliminate prewar barriers to world\ntrade, then we can all expect to see an era of unprece-\ndented prosperity for many nations, including this one.\"\nRegraded Unclassified\n152\nEXECUTIVE OFFICE OF THE PRESIDENT\nBUREAU OF THE BUDGET\nAAT\nWASHINGTON, D.C.\nAUG 1 7 1944\nMy dear Mr. Morgenthau;\nI am pleased to hear that Smithies was of some use at\nthe monetary conference. I was naturally very glad, indeed,\nthat the conference, and especially the efforts of the\nTreasury, were so successful. You have my best wishes in the\ndifficult tasks that remain.\nSincerely yours,\nHonorable Henry Morgenthau, Jr.\nThe Secretary of the Treasury\nWashington, D. C.\nRegraded Unclassified\n153\nTREASURY DEPARTMENT\nfinished\nINTER OFFICE COMMUNICATION\nDATE August 17, 1944\nTO\nThe Secretary\nFROM\nMr. Haas MA\nMr. D. W. Bell has a copy of this memorandum\nand we have discussed it with him.\n154\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDATE AUG 15 -\nTO\nFROM\nMr. Haas\nSecretary M. Morgenthau\nSubject Refinancing of the Two Treasury Notes Maturing\nSeptember 15\nSUMMARY\nTwo Treasury notes totaling $918 millions\nmature on September 15. It is suggested that the\nholders of these notes be offered an exchange into\nthe 1 percent Treasury note due March 15, 1946,\nnow outstanding in the amount of $503 millions.\nIt 1s recommended that the certificate issues due\non September 1 and October 1 be treated separately\nfrom the note maturities, and refunded into new\ncertificates.\nThere are only three Treasury obligations, other than\nbills and certificates of indebtedness, which will call for\nrefinancing during the remainder of the calendar year 1944.\nOne of these, the 4 percent Treasury bond, 1944-54, called\nfor redemption on December 15, need not be considered at\nthis time. The other two issues are Treasury notes, both\nmaturing September 15. They are:\nCoupon\nTax status\nAmount outstanding\n(Millions of dollars)\n3/4 percent\nTaxable\n635\n1 percent\nWholly tax-exempt\n283\nTotal\n918\nThe holdings of these securities by the various classes\nof owners on June 30, 1944, are shown in the following table:\nRegraded Unclassified\n155\nSecretary Morgenthau - 2\n3/4 percent\n1 percent\nTotal of\n:\nnote (T)\nnote (W)\n:\ntwo issues\n:\nMillions\nMillions\nMillions\nPer-\nPer\nPer-\n:\nof\nof\nof\ncent\ncent\ncent\n:\ndollars\n:\ndollars\n:\n:\ndollars\nCommercial banks\n472\n74\n52\n18\n524\n57\nFederal Reserve\nBanks, Govern-\nment agencies\nand trust funds\n46\n7\n24\nOR\n70\n8\nAll other investors\n117\n19\n207\n74\n324\n35\nTotal\n635\n100\n283\n100\n918\n100\n(T) - Taxable\n(w) - Wholly tax-exempt\nSeventy-four percent of the 3/4 percent note, the taxable\nissue, 18 in the hands of commercial banks. When the small\namount of the tax-exempt issue held by commercial banks 18\nadded to this, it is found that of the $918 millions to be re-\nfinanced, $524 millions was held by commercial banks on June 30.\nAs the maturity date approaches, somewhat more of the taxable\nissue will find its way into the hands of commercial banks.\nThere was also some shift of the tax-exempt issue into the\nhands of two large New York banks during June. It is desirable,\ntherefore, to make a refunding offer which will be attractive\nprimarily to commercial banks. It 18 probably not necessary\nto note again that nothing that the Treasury can offer in the\nway of taxable issues will compensate the \"all other investors\",\nwho held $207 millions of the 1 percent tax-exempt note on\nJune 30, for the tax-exemption privilege which they must give\nup when the note matures.\nWith these considerations in mind, it 18 recommended\nthat the two maturing issues can be refunded most effectively\nby reopening the 1 percent Treasury note, due March 15, 1946,\nand making an exchange offer. The advantages to this pro-\ncedure are:\nRegraded Unclassified\n156\nSecretary Morgenthau - 3\n(1) There 1s only a small amount, $503 millions,\nof this note outstanding; and only one other issue, with\n$489 millions outstanding, falls into the maturity\nschedule (first call) in March 1946. There are, in\nfact, no large maturities at all in 1946 until December.\nTherefore, the reoffer of the 1 percent Treasury note,\ndue March 15, 1946, would fit well into the maturity\nschedule of Government obligations from the standpoint\nof the Treasury. At the same time, it would serve to\nround out the portfolios of banks which want something\njust a little longer than a certificate.\n(2) The reopening of this particular note will\nkeep the interest cost low, 1 percent; it will, in\nfact, constitute the cheapest refinancing that can\nbe obtained, except by the offering of a certificate\nof indebtedness.\n(3) The present premium on the 1 percent note,\n7/32 (bid), 18 high enough to make the deal attractive\nto all holders alive to market developments; but not\n80 high that it will give them an undue profit.\nThere are two principal alternatives to the refinancing\nsuggested above:\n(1) The first alternative to this or any other\nexchange offering 1s, of course, B. cash repayment.\nSince it is possible to make an exchange offer which\nis desirable from the Treasury viewpoint, and yet is\nattractive to the holders of the maturing notes, there\ndoes not appear to be any particular advantage in a\ncash repayment. There would, of course, be some cash\ninvolved in the financing which has been suggested;\nbut it would involve pulling down the cash balance by\nnot more than $100 millions, as compared with over $900\nmillions if the whole transaction is on a cash basis.\n(2) It has been suggested to us that these\ntwo notes be refinanced along with either the oer-\ntificate which matures September 1 or that which\nmatures October 1 - all three to be exchanged for a\nnote. As the maturing certificates amount to $4,122\nmillions and $3,519 millions, respectively, the total\nRegraded Unclassified\n157\nSecretary Morgenthau - 4\ndeal would amount, in such an event, to about $5 b11-\nlions. For such a transaction, a new note -- and\nprobably one of longer maturity and higher coupon --\nwould be offered.\nIt seems to us that the proposed combination\nwould be unwise for the reasons stated below; and\nwe recommend that the consistent policy of refund-\ning certificates only into new certificates be\ncontinued.\n(a) Refunding a certificate into a\nnote would for the first time give an\nappreciable rights value to a maturing\ncertificate. This would introduce a\nspeculative element, which has hitherto\nbeen lacking, into the certificate mar-\nket, and whet the appetite of certificate\nholders for further such exchanges.\n(b) The September 1 maturity of cer-\ntificates was that offered at the time\nof the Third War Loan. It was therefore\nall sold originally to nonbank holders,\nprincipally nonfinancial corporations;\nalthough by June 30, about 63 percent of\nit had passed into the hands of commercial\nand Federal Reserve Banks. The October 1\nmaturity was issued originally to refund\nan earlier certificate issue, held largely\nby banks, and to raise additional cash from\ncommercial banks following the Third War\nLoan. On June 30, about 92 percent of it\nwas in the hands of commercial and Federal\nReserve Banks. Both classes of holders,\nthe corporations and the banks, originally\nselected a certificate as best suited to\ntheir needs; and it 18 best for the interests\nof the whole economy that each class continue\nto hold certificates. An exchange of a note\nfor a certificate, in the case of commercial\nbanks, would result in decreasing their\nliquidity and increasing their earnings;\nwhile, in the case of nonfinancial corpora-\ntions, it would add a new market factor to\nthe already-existing problems of financing\nthe conversion of the economy to peacetime\nneeds.\nRegraded Unclassified\n158\nSecretary Morgenthau - 5\nThe holders of the maturing certificates\nwould probably, nevertheless, welcome an\nexchange for a note because of the greater\npremium which a note would command. Some of\nthem, if given a note in exchange, would\nprobably take the premium and convert the\nnote through market channels into outstanding\ncertificates. The principal result, as far\nas these holders were concerned, would be to\nchurn up the market. Others would doubtless\naccept the note because of the greater premium,\nand hold it, rather than bother to do their\nown refunding, even though a note might not\nbe the best instrument for their own purposes\nor for the good of the whole economy.\n(o) Joining the notes maturing September 15\nin a single refunding with either the Septem-\nber 1 or the October 1 certificate would present\na problem of interest adjustment, due to the\ndifferences in maturity dates of the outstanding\nsecurities, 80 that one, at least, would mature\non a date other than the issue date of the new\nsecurity. In all such cases, the possibility\narises that some investors, who would have\naccepted a straight exchange at maturity, will\nfind it advantageous, or simply less trouble,\nto elect cash repayment. This was evident in\nthe March refunding, when exchanges of the\nwholly tax-exempt note due March 15, which\nrequired no interest adjustment, amounted to\n94 percent; while those of the wholly tax-\nexempt note due June 15, which required a\nthree-month interest adjustment, amounted to\nonly 65 percent.\nRegraded Unclassified\n159\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDATEAugust 17, 1944\nTO Mrs. Kiotz\nFROM Mr. Shaeffer CP.\nLast Tuesday, during consideration of a bill to provide\nfor the disposal of surplus Government property and plants,\nRepresentative Sabath made the attached fine remarks about\nour Mr. Olrich which became a part of the Congressional\nRecord for that day.\nRegraded Unclassified\n160\nthat there might not be a repetition of\nthe conditions experienced after the\nfirst war. I recall a conference I had\nwith a gentleman, Mr. Olrich, who im-\npressed me greatly as a sound, capable,\nand experienced businessman, who ac-\nquainted me with the preliminary plans\nfor the disposition of the surplus prop-\nerty under the jurisdiction of the Pro-\ncurment Division of the Treasury De-\npartment. It is men of his type needed\nin the administration of the disposition\nof these vast surpluses and it is to be\nhoped that more men of his business\ncaliber will be found in the organization\nprovided for under this bill.\nRegraded Unclassified\n161\nAugust 17, 1944\nMEMORANDUM For THE SECRETARY\nFOR YOUR INFORMATION\nSubject: Recent Developments in the Argentine Situation.\nAt the time the Argentine Government decided to re-\nmove its gold from the United States, we adopted the practice\nof clearing each shipment with the State Department before re-\nleasing it. Each shipment of the $64,000,000 in gold which has\nbeen transferred to Argentina since October 1943 has first been\nreferred to the State Department in this manner.\nIn accordance with this routine procedure, State\nwas informed on August 3, 1944, that two shipments, each of\n$1,250,000 were scheduled to sail within the next few days.\nThe State Department subsequently advised that they had been\nreviewing the Argentine situation, that they had not decided\nthat the shipments should be allowed to go, and that they would\nnotify us as soon as a decision had been reached.\nMeanwhile, on August 5, 1944, representatives of FEA\nindicated that they were getting State's approval to a program\nfor reducing American imports from Argentina and requested our\ncooperation in executing the program. In accordance with their\nrequest, Special Regulation No. 2, a copy of which is attached,\nwas prepared subjecting to Foreign Funds Control licensing pro-\ncedure all imports from Argentina except those made by the\nUnited States Commercial Company. This procedure was cleared\nwithin the State Department early that afternoon and the plan\nwas presented by State and FEA to representatives of the War\nFood Administration, the War Shipping Administration, and the\nWar Production Board that same day.\nLate that same afternoon, we were informally advised\nthat the State Department was recommending to Cordell Hull a\ncomplete freeze of Argentina.\nOn August 8, 1944, one of the boats scheduled to take\na shipment of gold was about to depart. Inasmuch as we had re-\nceived no further word from State with respect to the release of\nRegraded Unclassified\n162\n- 2 -\nthe gold shipments, the freezing of Argentina, or the appli-\ncation of control over Argentine imports, Schmidt checked\nwith Collado about the situation. After checking within the\nState Department, Collado called and advised that they were\nstill waiting for word from the Secretary of State on the\nfreezing of Argentina, and that Treasury should use its own\njudgment as to whether the gold was to be allowed to depart.\nIn view of these circumstances, it was decided, with the con-\ncurrence of Dr. O'Connell and Mr. Gaston, that the gold should\nnot be released for shipment as scheduled but should be held\npending decision by the Secretary of State with respect to the\nprograms which he then had under consideration. Yesterday, UP\nreleased a story about the gold, a copy of which is attached.\nWe are informed that the leak came from sources close to the\nDepartment of State and FEA.\nYesterday we were informed by FEA that the delay in\nthe application of the controls over Argentine imports was\ncaused by the fact that top officials of the War Food Adminis-\ntration and the War Production Board had gotten to Hull. FEA\nfeels, however, that they will soon get a green light on this\nproject.\nOmo abchmolt\nRegraded Unclassified\n163\nTREASURY DEPARTMENT\nFOREIGN FUNDS CONTROL\nCODE OF FEDERAL REGULATIONS\nTitle 31 - Money and Finance: Treasury\nChapter I - Monetary Offices, Department of the Treasury\nPart 138 - Special Regulations relating to Argentine\nimports into the United States.\nSPECIAL REGULATION NO. 2\nRelating to Argentine Imports Into\nthe United States *\nBy virtue of the authority vested in me by Executive Order\nNo. 9193 of July 6, 1942 and Section 5(b) of the Trading with\nthe enemy Act of October 6, 1917, as amended by the First War\nPowers Act, 1941, it is hereby ordered as follows:\nSection 1. Regulating Argentine Imports. All of the fol-\nlowing transactions are prohibited, except as specifically au-\nthorized herein, or as authorized by a license or other authori-\nzation of the Secretary of the Treasury:\n(a) The importation into the United States from any\nforeign country, whether for consumption or exportation,\nof any goods, wares or merchandise in which Argentina or\nany national thereof, has at any time on or after August\n,\n1944 had any interest of any nature whatsoever,\ndirect or indirect;\n(b) The importation into the United States, directly\nor indirectly, from Argentina, whether for consumption or\nexportation, of any goods, wares, or merchandise in which\nany foreign country or national thereof has at any time on\nor after August , 1944 had any interest of any nature\nwhatsoever, direct or indirect;\n(c) The acquisition, holding, use, transfer, with-\ndrawal, transportation, exportation or importation of, or\ndealing in, or exercising any right, power, or privilege\nwith respect to, any goods, wares, or merchandise imported\ninto the United States after August , 1944 contrary to\nthe provisions of (a) or (b) above; and\n*Part 138: - Section 5 (b), 40 Stat. 415 and 966; Sec. 2, 48\nStat. 1; 54 Stat. 179; 55 Stat. 838; Ex. Order 9193, July 6, 1942\nRegraded Unclassified\n164\n- 2 -\n(a) Any transaction in foreign exchange, transfer\nof credit or payment between, by, through, or to any\nbanking institution within the United States for the\ndirect or indirect purpose of acquiring, holding, using,\ntransferring, withdrawing, transporting, exporting, im-\nporting or dealing in, or exercising any right, power, or\nprivilege with respect to, any goods, wares, or merchan-\ndise (i) in which Argentina or any national thereof, has\nat any time on or after August , 1944 had any interest\nof any nature whatsoever, direct or indirect, or (ii)\nphysically within Argentina and in which any foreign\ncountry or national thereof has at any time on or after\nAugust\n, 1944 had any interest of any nature whatsoever,\ndirect or indirect.\nSection 2. Transactions authorized. The provisions of\nSection 1 of these regulations shall not be deemed to apply with\nrespect to:\n(a) any goods, wares or merchandise imported into the\nUnited States on or before August\n,\n1944 or any goods,\nwares, or merchandise physically situated in the United\nStates on August , 1944;\n(b) Any goods, wares, or merchandise purchased by or\nthrough the U. S. Commercial Company; or\n(c) Any goods, wares, or merchandise aboard vessels\nwhich have sailed from Argentina on or before August\n,\n1944.\nSection 3. Licenses.\n(a) Any application for & license to engage in any\ntransaction prohibited under Section 1 of these regulations\nshould be filed in the manner prescribed in Section 130.3 of\nthe Regulations under Executive Order No, 8389, as amended;\nprovided, however, that such application shall expressly\nrefer to Special Regulation No. 2.\n(b) The general procedure which will be followed in\nhandling any application for a license under these regula-\ntions will be that employed in the administration of Execu-\ntive Order No. 8389, as amended. The Secretary of the\nRegraded Unclassified\n165\n- 3 -\nTreasury will consult with the Foreign Economic Adminis-\ntration before acting upon any application.\n(c) No license shall be deemed to authorize any\ntransaction prohibited under Section 1 of these regula-\ntions unless such license expressly refers to Special Regu-\nlation No. 2.\n(a) No license authorizing any transaction prohibited\nunder Section 1 of these regulations shall be deemed to\nauthorize any transaction prohibited under Executive Order\nNo. 8389, as amended, or any other ruling or regulation is-\nsued pursuant to sections 3 (a) or 5(b) of the Trading with\nthe enemy Act, as amended, unless the contrary is expressly\nstated.\nSection 4. Definitions. As used in these regulations, all\nterms shall have the meaning prescribed in Executive Order No.\n8389, as amended, or as prescribed in regulations, rulings, pub-\nlic circulars, or public interpretations issued thereunder or\nin connection therewith. In particular, the provisions of\nGeneral Ruling No. 4 issued under Executive Order No. 8389, as\namended, shall be deemed to apply.\nSection 5. Penalties. Section 5(b) of the Act of October\n6, 1917, as amended, provides in part:\nhoever willfully violates any of the provisions\nof this subdivision or of any license, order, rule or regu-\nlation issued thereunder, shall, upon conviction, be fined\nnot more than $10,000, or, if a natural person, may be im-\nprisoned for not more than ten years, or, both; and any\nofficer, director, or agent of any corporation, who know-\ningly participates in such violation may be punished by a\nlike fino, imprisonment, or both.\"\nSection 6. Amendment, Modification or Revocation. These\nregulations and any rulings, licenses, rules, instructions,\nforms or schedules issued hereunder may be amended, modified or\nrevoked at any time.\nSecretary of the Treasury\nRegraded Unclassified\n166\nTHE WASHINGTON POST\nAugust 17, 1944\nU.S. HALTS FLOW OF GOLD TO ARGENTINA\nBy the Associated Press\nThe United States applied a single premonitory turn of\nthe economic screw to recalcitrant Argentina yesterday, halting\nthe homeward flow from this country of gold owned by the South\nAmerican nation.\nIt was the first positive action since Secretary of State\nHull several weeks ago described Argentina as a \"deserter\" from\nthe cause of the United Nations.\nArgentina has been withdrawing gold from the United States\nfor several months, shipments aggregating $20,000,000 to $30,000,\n000. The Treasury's foreign funds control division recently re-\nfused to permit a shipment from New Orleans of about $2,000,000,\nand it was understood that no further shipments will be allowed\npending clarification of the diplomatic situation.\nThe possibility of a general \"freeze\" of Argentina's assets\nhas been under consideration for months. The order actually has\nbeen drawn, but never issued.\nThe stop on gold shipments is not regarded here as a partic-\nularly drastic curb. Argentina, in effect, now acquires the\nstatus of a \"neutral,\" and loses a preferred status. Neutral\ncountries are not allowed to withdraw gold, but this policy is\nnot applied to allied or associated nations.\nRegraded Unclassified\n167\nAUG 17 1944\nDear Dean:\nI have your letter of August 7,\n1944, asking to have the assistance\nof a Treasury representative at the\nSecond Session of the United Nations\nRelief and Rehabilitation Administra-\ntion which will open on September 15,\n1944, at Montreal, which representative\nwill serve in the capacity of Adviser\nto the Council Member.\nI am glad to comply with your\nrequest and designate Mr. Harold Glasser\nof the Division of Monetary Research\nas the Treasury representative. We\nwill make him available to work with\nyou before and during the Second Session\nto be held at Montreal.\nSincerely yours,\n(Signed) Henry Morgenthau, Jr.\nHonorable Dean Acheson\nAssistant Secretary of State\nWashington, D. C.\nDWB:NLE\nRegraded Unclassified\nADDRESS OFFICIAL COMMUNICATIONS TO\nTHE SECRETARY OF STATE\nWASHINGTON, B.C.\n25\nDEPARTMENT OF STATE\nWASHINGTON\nAugust 7. 1944\nDear Henry:\nI have written you today requesting the\nTreasury's assistance in naming the American appointee,\nwho will also act as Chairman, on a special committee\nof the United Nations Relief and Rehabilitation\nAdministration. There is one further matter on which\nthis Department would greatly appreciate assistance\nfrom the Treasury Department.\nThe Second Session of the United Nations Relief\nand Rehabilitation Administration will open on\nSeptember 15, 1944 at Montreal. At this meeting it\nwould be very helpful indeed to have the assistance\nof a representative of the Treasury Department, who\nwould serve in the capacity of Adviser to the\nCouncil Member. You will recall that the Treasury\nsent such a representative to the first session of\nthe Council which took place in November, 1943. The\ncontribution of the Treasury representative to the\nwork of the American delegation and to the work of\nthe Council as a whole was extremely valuable and\n.,as one for which we were grateful. I am, therefore,\nvery hopeful that it will be possible for you to\nname an officer of the Treasury to attend the\nMontreal meeting.\nSincerely yours,\nArea\nAssistant Secretary.\nThe Honorable\nFORDEFENSE\nHenry Morgenthau, Jr.,\nSecretary of the Treasury,\nBUY\nWashington 25, D.C.\nUNITED\nSTATES\nSAVINGS\nBONDS\nAND STAMPS\nRegraded Unclassified\n169\nAUG 17 1944\nDear Dean:\nI have your letter of August 7,\n1944, requesting as the Member of the\nCouncil of the United Nations Relief\nand Rehabilitation Administration,\nthat the Treasury permit one of its\nofficers to serve as member and chairman\nof a committee of the Council which will\ndetermine whether each Government asking\nassistance from the Administration is\nin a position to pay in foreign exchange.\nI am pleased to permit an officer\nof the Treasury to serve as a member of\nthis committee and also to act as its\nchairman if you BO desire, and suggest\nfor this purpose Mr. Harry White, Director\nof Monetary Research of this Department.\nSincerely yours,\n(Signed) H. Merganthon, Jr.\nHonorable Dean Acheson\nAssistant Secretary of State\nWashington, D. C.\nDWB:NLE\nRegraded Unclassified\nADDRESS OFFICIAL COMMURICATIONS TO\nTHE SECRETARY OF STATE\nWASHINGTON, D.C. 25\nDEPARTMENT OF STATE\nWASHINGTON\nAugust 7. 1944\nDear Henry:\nAs the Member of the Council of the United Nations\nRelief and Rehabilitation Administration representing\nthis Government, may I ask the assistance of the Treasury.\nSection 17 of Resolution 14 of the first meeting of\nthe UNRRA Council provides that, when a member government\nconsiders that it is not in a position to pay in foreign\nexchange for imported supplies, the Director General, on\nthe advice of an appropriate committee of the Council\nshall determine whether the government is in a position\nto pay. A further resolution of the Council determines\nhow that appropriate committee shall be appointed. I am\nattaching for your ready reference sections 16-19, in-\nclusive, of Resolution 14 and the resolution relating\nto the special committee.\nMr. Pearson of Canada, who has the authority to\nappoint this committee has consulted with me and intends\nto designate as members of the committee the appointee\nof the United States, who will act as Chairman, and the\nappointees of the United Kingdom, the Soviet Union,\nBrazil, and Norway. In the opinion of this Department\nit would be most desirable to have as the American\nrepresentative upon this important committee and as its\nchairman an officer of the Treasury Department, and I\nhave the approval of the Acting Secretary in asking you\nto agrist us by designating such an officer and author-\nizing him to act in the capacity mentioned.\nThe Director General has received an application\nfrom Greece requesting that he determine that it is not\nin a position to pay in suitable foreign exchange.\nTherefore, the committee's first task will be to deter-\nmine whether Greece is in a position to pay in foreign\nFORDEFENSE The Honorable\nHenry Morgenthau, Jr.,\nBUY\nSecretary of the Treasury,\nUNITED\nWashington 25, D.C.\nSTATES\nSAVINGS\nBONDS\nAND STAMPS\nRegraded Unclassified\n-2-\nexchange. While I imagine this task should not prove\ndifficult, this committee, or another upon which the\nsame American representative would act as chairman,\nwill have other requests which undoubtedly will prove\nmore difficult. It is, therefore, of great importance\nthat the American representative on this committee should\nbe an official whose reputation and prestige will inspire\nconfidence in his capacity and impartiality. It is also\nimportant that this committee commence its consideration\nof the Greek application as soon as possible so that a\ndetermination of this question can be made before the\nSecond Session of the Council, which will begin on\nSeptember 15.\nI should greatly appreciate it, therefore, if you\nwould let me know at an early date whether it will be\nagreeable to you to have an officer of the Treasury\nserve in this capacity and, if so, if you would let me\nhave your nomination of the officer whom you consider\nqualified to undertake the assignment.\nSincerely your\nAxan Exhenson\nAssistant Secretary.\nEnclosures:\n2 Excerpts from UNRRA Resolutions\nSection 16. Governments in a Position to Pay With Suitable\nMeans of Foreign Exchange\nIt shall be the policy of the Administration not to\ndeplete its available resources for the relief and rehabil-\nitation of any area whose government is in a position to pay\nwith suitable means of foreign exchange.\nSection 17, Determination of Whether a Government is in a\nPosition To Pay With Suitable Means of Foreign Exchange\nWhen a member government considers that it is not in a\nposition to pay as in the foregoing section, the Director\nGeneral, in consultation with the Member government involved\nand on the advice of the appropriate committee or subcom-\nmittee of the Council, shall determine whether the govern-\nment or country is not in a position to pay for relief and\nrehabilitation supplies and services. In case of disagree-\nment, either the member government or the Director General\nmay refer the matter to the Council.\nIn making the determination the applicant's foreign ex-\nchange assets and its sources of foreign exchange shall be\ntaken into account. Although payment for relief and rehabil-\nitation supplies and services shall be considered to have a\nstrong claim on the foreign exchange assets of the applicant\ncountry, due consideration shall be given also to its need\nof foreign exchange for other purposes.\nThe Director General, from time to time, shall review\nsuch determination in the light of changing circumstances.\nSection 18. Policy on Relief Debt Burdens\nIt shall be the policy of the Administration that an\napplicant government shall not be required to assume the\nburden of an enduring foreign exchange debt for the procure-\nment of relief and rehabilitation supplies and services.\nSection 19. Supplies and Services for Which Member Govern-\nments Are Not in a Position To Pay With Suitable Means of\nForeign Exchange\nThe Council recommends that governments not in a\nposition to pay in suitable means of foreign exchange for\nnecessary relief and rehabilitation supplies or services\nmake available to the Administration in whole or in part\nthe local currency proceeds from the sale of supplies\nfurnished\nRegraded Unclassified\nfurnished by the Administration. It shall be the policy of\nthe Administration to use any such local currency for re-\nlief and rehabilitation work, including the care and movement\nof oisclaced persons, and for such other purposes as may be\nagreed upon with the government. Programs for the utilization\nof such local currency shall be formulated by the Director\nGeneral and the member government involved.\nRegraded Unclassified\nA Resolution Relating to the Appointment of a Subcommittee\nof the Committee on Supplies\nRESOLVED\nThat the Council approve the appointment by the chair-\nman of the Committee on Supplies, after consultation with\nthe chairman of the Committee on Financial Control, of a\nsubcommittee of not more than five members, of whom a\nmajority would be drawn from the Committee on Supplies with\nthe other member or members drawn from the Committee on\nFinancial Control, and that this subcommittee be considered\nthe appropriate subcommittee to advise the Director General\nrelative to determining whether a government is in a position\nto pay, as provided in section 17 of the Financial Plan.\nRegraded Unclassified\n174\nAUG 17 1944\nMy dear Dr. Kohn:\nI regret that my recent absence from\nWashington has occasioned delay in my reply to\nyour letter of August 4, 1944, in which you in-\nquire about the relationship between Mr. Eri\nJabotinsky and the War Refugee Board.\nI have taken this matter up with the\nExecutive Director of the Board, who has confirmed\nto me that, contrary to the impression apparently\ngiven, Mr. Jabotinsky is not a representative of\nthe War Refugee Board.\nThe War Refugee Board, as a matter of\npolicy, works closely with all private agencies\nin the refugee field that have contributions to\nmake toward the tremendous and heart-breaking\ntask of saving refugees. It cooperates with\nZionists, non-Zionists and anti-Zionists, with\nJews and non-Jews, with liberals and conserva-\ntives, and with both large and small groups.\nRepresentatives of many of these groups\ncarry on activities in several of the neutral\ncountries. In Turkey, for example, there are\n80 many representatives of private refugee agencies\nthat the Board has had to undertake a coordinating\nprogram. One of the representatives now in Turkey\nis Mr. Jabotinsky, who represents the Emergency\nCommittee to Save the Jewish People of Europe.\nRegraded Unclassified\n174-A\n- 2 -\nAs you no doubt know, the War Refugee\nBoard is an organization set up by Executive\nOrder of the President, a copy of which is\nenclosed.\nVery truly yours,\n(Wigned) H. Morgenthau, Jr.\nDr. Hans Kohn,\nSmith College,\nNorthampton, Mass.\nEnclosure\n8/16/44\nRegraded Unclassified\nHOPEWELL JUNCTION\nDUTCHESS COUNTY, NEW YORK\nTELEPHONE: BEACON 211\nAny 10/44\nMydeav MaPalle,\nDu accordance with your\nsuggrstion are The phone Dam Enclusing\nThis 1, Hru for my hus hand from Part. Rohu,\nJo That you call pripare au ausurn\nto he rigurd on his REturn.\nId V4rs Prossor H can\nQET away after deps the she would\nhappy to visit Dr REFUGES Camp\nwith me, but Dheis not sure just\nhar Fature plans. IthinkallRe\nhow publicity Rad you has had hasbra excellant\nSincerely yours,\nShirt B.\nSMITH COLLEGE\nNORTHAMPTON. MASSACHUSETTS\nDEPARTMENT OF HISTORY\nprivate and confidential\nAugust 4, 1944\nMy dear Mr. Morgenthau,\nI receive regularly from Palestine a\nweekly letter, published by Zionists from\nGermany. I have had a long and very intimate\nknowledge of Zionist publications, and I may\ntherefore be able to state with some authority\nthat I always found this paper the by far most\nserious, most responsible and level headed\nZionist publication.\nI am enclosing the first page of the issue\nof May 26 where I marked one of the editorial\ncomments, and I would be very grateful 1f you\nwould be able to give to the matter your\nattention.\nAs you probably know there is a very active\ngroup of extremist Zionist nationalists, who in\ntheir philosophy and outlook are closely akin\nto fascist nationalism, Some of them have now in\nWashington founded a Jewish Committee of National\nLiberation. Others in Palestine have carried on\nfor many months a campaign of ruthless terrorism,\nreminding, in deeds, thoughts and language, of\nthe worst excesses in central Europe.\nThe founder of this movement was Vladimir\nJabotinsky who died a few years ago. His son\nMr. Eri Jabotinsky is now a leading member of\nthe movement.\nThe editorial which I enclose expresses\nits astonishment about the fact that Mr. Eri\nJabotinsky has arrived in May by airplane in\nSMITH COLLEGE\nNORTHAMPTON. MASSACHUSETTS\nDEPARTMENT OF HISTORY\nPalestine on his way to Turkey as an official\ndelegate of the American War fugee Board,\nan institution which the editor of the paper\nbelieves to be under the direction of the\nSecretary of the Treasury.\nI do not know anything of the background\nof this \"a \"fair\", but I thought it advisable\nto bring it to your attention, As I said above,\nthere is no Zionist group more responsible and\nmore conscious of its obligations in the present\ninternational situation than the group writing\nthe editorial in question.\nSincerely yours,\nLeam Hohn\nHans Kohn\n174-E\nTranslation of an extract from \"Mitteilungsblatt,\nAlija Chadascha, Tel-Aviv, 26 Mai 1944\"\nWe Jews sometimes think of ourselves sufficiently high to con-\nsider critically events occurring among other peoples and to express\nour condemnation of them without realizing that all peoples appear\nto be subject to the same \"laws of nature,\" our own people included.\nIn our midst, too, the most bizarre things go on against which we\nseem to be powerless, since they have arisen from conditions which\nwe eyed blindly and since we did not consider our own thoughts and\ndeeds in a sufficiently critical light.\nThere are movements now spreading in our lives in this country,\nwhich cause all of us deep concern. After a pause of a few weeks the\nterror has again broken out. Last week we lived through the crazy\nadventure in Ramalla, in which all participants have unfortunately\nescaped. There are again threatening letters and \"death sentences\"\nwhich are publicly posted in Tel-Aviv at all street corners. The\n\"fighters for Israel's freedom\" boast publicly of the murder of two\nJewish policemen. The \"Haaretz\" has justly complained a few days ago\nthat there seem still to exist people in this country who protect the\nterrorists and such others who let themselves be blackmailed for money,\nsince it is apparent that such things require money. Something else,\nthough, should be added in this connection. It is quite possible\nthat these people get money from abroad as well. True, in the case\nof such secret groups there are no clearly discernible organizational\nboundaries, but just this week it became known how strange groups\nabroad, spiritually related to the terrorists, do their work. Special\nRegraded Unclassified\n174-F\n2\nattention has been attracted by a letter of the Dutch-American\njournalist, Pierre Van Passsen, a. man who has been radically pro-\nZionist for years, but who 1s apparently naive and never well\ninformed about the real situation; like many other well-intentioned\nand ignorant people, he let himself be misused for all sorts of\npropaganda and in recent years gave his support to the revisionist\ncommittees in America which appear under different names. These\ncommittees which attempted to exploit in their own political interests\nthe sympathy for the European Jewish catastrophe existing in liberal\ncircles, apparently have received a lot of money, otherwise they\ncould not have permitted themselves the luxury of gigantic advertise-\nments in the large American newspapers. Van Paassen writes now in\nan open letter that he has found out that these revisionist committees\nare nothing else than exponents of that notorious \"Irgun Zwai Leumi\"\nin Palestine which distinguishes itself by acts of terror, and that\nthey have made use of the internal political situation in America to\nreceive the help of certain reactionary Senators. Thereupon Van\nPaassen resigned the chairmanship of the \"Committee for the Jewish\nArmy\"; identical with this committee is the so-called \"Emergency\nCommittee for the Rescue of the Jews of Europe.\" The very name of\nthis committee shows to what extent the Jewish need is being abused.\nThe matter is getting crazier still; a representative of this\ncommittee, the young Eri Jabotinsky, came one of these days by air-\nplane to Palestine and is on his way to Turkey on an official mission\nRegraded Unclassifie\n- 3 -\nof the American Government. If one knows how difficult it is today\nto get a seat on an airplane and how many important trips have to be\nomitted, one holds one's head and one asks oneself what is it all\nabout. In a \"press conference\" which the young man has held in\nPalestine he declared that he is going to Turkey as delegate of the\nAmerican Mar Refugee Board, an institution which is connected with\nthe American Treasury, headed by Morgenthau. Jabotinsky said that\nthe creation of this Board is due to the propaganda of the so-called\n\"Committee for the Rescue of the Jews of Europe\", which has been\nfounded by a few young Palestinians in America and which has\naddressed itself to the American Congress and the Senate. They are\nthe same young mèn whom Van Paassen names as the representatives of\nthe Irgun Zwai Leumi. Normal Palestinians who suffered under the\nterror of the Irgun Zwai Leumi will not understand how come that\nagencies of the American Government should get the idea to deal\nprecisely with this group.\nSince we have reached this chapter, we must state that our amaze-\nment over the indirect and often direct furthering of these groups\ngoes still further. In these days when, because of the war regulations,\nit is very difficult for most people to leave this country, people who\nstand very near to the above mentioned organizations travel abroad,\n-\neven for purposes of propaganda trips and fund raising campaigns. At\nthe present time, for instance, the Jewish public opinion of South\nAfrica is being agitated by such & Palestinian delegate. That such\nRegraded Unclassified\n- 4 -\nactions are possible, appears to many as a paradoxical sign of\nindirect furtherance of a subversive group, confusing and irritating\nfor all those who consider the furtherance and financing of such\ngroups to be undesirable and who should be entitled to believe that\nall responsible elements share this opinion.\nThe comedy in America has borne even stranger fruits this week.\nA \"Jewish Committee for National Liberation\" (the name is chosen in\nimitation of the French Committee in Algiers) has announced that it\nhas purchased the building of the former Iranian Legation in Washing-\nton for $63,000, in order to equip it as the future legation of the\nJewish state. Where these people got the money is not revealed.\nAll the responsible Zionist groups in America have turned away from\nthis committee. The Jewish people and Zionism are becoming ridiculous\nin the eyes of the American public. This whole story could have\nbecome the subject of an adventure film relating how seven young men\nled all of America by the nose.\nThe matter only becomes difficult to understand if one hears that\na member of this committee functions as official American delegate in\nthe Near East. One must fear that this sort of thing heightens the\nprestige of these adolescents in the eyes of inexperienced people and\nthat it renders difficult the work of enlightenment of those who try\nto turn the youth away from the ways of the Irgun Zwai Leumi and of\nrelated tendencies.\nRegraded Unclassified\n1'152\nPalgin\nmu'T'\nThe\nAnny\nnaih\nMass\nMITTEILUNGSBLATT\nO.B.G.\nHEADACHE\nTOOTHACHE\nALIJA CHADASCHA\nNEURALGIA\nJABRGANG 8, Mr. TEL-AVIV. MAI 1944 I'En\nIn dieser Schawuoth-Woche\nAm Vorabend grosser Ereignisse Abenteuer in Ramalla und Komödie in Amerika-Aufruf an Mädchen-Drei Sechzigjährige\nviele andere wordwollende und um-\nder\namerikanlechen\nRegistrag\nnot\nATS\nalso\nand\nals\nWALF\n(Flugar\nDie divies\nand Juder meint, date der Befrei-\nbe-\nwith des Dommet No, rines\nwissende Leute, für atterhand Pro-\ndie Idea certailen, sich\n092 dassa de war, um\nPuinter, you dem wir creditor\nthe aus du \"freig\" Austries\npuglinda missbraction Hean ned\nort mit disgre Groppe\nwährt. Kin Tell der judischen AT*\nla den Jahren den unier\nDa wir achon bei dem Kapitel\nint jobil in lialien litig. Num wird\ndess or guientige Knischridengen\nwitdre Trielen au grainties,\ndoes belwo wir bills Hecht, TON\nverschledenen Namen\nsind, so milisero wir featatelles,\nmitgetsilt, dans els grusser\nbringin wind. das\ndass dinses Erstaunto Bluer Indi-\ndarf nach ausätzlichen Keifino\nHebe - be-\nFrelbelt to reden, Leider sher\nrevisionistlechen Comiters la Ame-\ngründ - der deutache Dichter\nArm. nir Answicken einer selection\nrisa,\nsulme Understätzung Beh,\nrekte and bäsfle sogar direkte\nbestehd. c.aso ATH-Maders not-\nZicht ansiclée\nFérderung disser Gruppen noch\nden (fir Isalizo Sex in\nin divere Jahren des Rebrockens\nDirect Komilieve, die das In libera\nwir veriorni, out de Lister\nles Kreisen berrachende Milleid\nwelter reicht. In direct Zeit, in\nDienst tun als Beamle, in Spinds\nrue Responsation and\nmit der europälischen Juden-Kata-\nber - für die meisten Menschen\nlers, als Materialserwoiser and\nlinbkell def Satur - arbien. En\nno la violeti Fr.\nWorlien hover, die for MII:\ndie just des\ninfolge der\nals Chauffere la England sind\nanophe für thre potitiaches Zwecks\nMonselton echieve Leiden\nPhon ind sich addressivo\nBIL'\nsubr schwer lat, das Land == ver-\nadmiliche Praties und Madches\nsof- ---- - Works\nlassen, relaes Leute, die den\nterrito für dem Kriegslivent\nin\nand Bargen bringen worden, vine\nsoch visi Gold bekom-\nErnte des Todas im alout - de-\nInderson\nave, deso social belien sie eich\nnannien Organizationen sehr nahe\ndieser ader Jener Form matill-\nmen, die without TO Sicherheit intern,\nin politischer Mission Ins\nalert. Deber wurde vin Appell as\nsight des Hangment In\nAustand, ja, such EN grossen Pro-\nPalistine general die\nnight, gruene Werle sú machen.\nserate in des grown amerikani-\nwirh 2000, die die\nWir Judro manchiner uner-\nactivité Zeisungen intern known\npagandatouren und\nLocks In official\nUpfer so bringen before werdent\nbet\nVas Passern achroild jetat la\nGerade jetst wird zum Belapiel die\nles belief es, dans\njudiache Ouffentlichkelt\nATN la Italian\nempfinden deukhar den grossion\nanderen Valuera kritish as be-\nOffenen Brief, et habe ent-\nWasdel der Zeites Ela Blord air\ndeckt. dass diese\nTOR einem derartigen palidational-\nTUN allen\nChickles und\nund Kreating\nse spricken, abus lima darnier\nscien Delegierjen\ndentiich geschäist werden. Rine\nKomiters sichts underes stad ate\ndie Well, Krimnern wis una\n-- getwo, dass pG.\nDate soleho Aklisoen maglish slaid,\nAusali ven theen set\nExpenentes jenes\ndue post - Jahren aw Kar\nerhelnend alto Villaer gleichen\nEwal Leason in Patiention,\nefucteint Virien nis ela paradoxes\nin elder Schule an der Admissischen\nincrupho - Planders benin-\nunterlingen,\nder pick durch Terrorable aux\nZeichen elser Indirekten Finde-\nKusta, sudité in in\nbrank über dir se-\nAuch tel\nsubject, and dass ale in Amerika\npass einer subversiven Gruppe,\nNeepel. Ceberall, so being 19. wor-\nreceimed and für\nden - Decunders outs\nwww.lichen Volker.\nsus gobro die\ndie Politic\nDamale gain das englische Yolk\nDinge THE area die wir coschet-\ndate - die Ellife En\nalle disjenigen, die elne Förderung\ngeneramen. Wir hoffen, dan (IFF\ndie Antwort YOU eleer\nnend stad, will mie -\nwinner reaktionärer Senstoren ou\nund Financierung dieser Grappen\nAppell in Palastine elce grint-\nAstwort, der prete Tur-\nfür überwänsebt balies and\nrunde Resonant finden wind De\nentain\norbation. Van l'assure leato\npala class alch suffettended But-\nden eind, gignature wir\ndes Versita le dem für\ncignallich annehmen minutes, dass\nrade is divisen Tagen wird -\ndie, grapvist 100 dess damate\nalle verastworiliches Paktores die-\nbewunt, win glückBeb vo le\nbilled narvo and unwer elgenes\ndie Indische Armed\" airder: Idem\nopthundenen Kräften,\n- tellon,\ndiesem Lande inten, vering TET-\nund Tue kriflech\nDech suit diesem Komiton has das\nschool 100 Kriegsubein. und dive\nstelle wecheen Bonnen und Reute\ngroup\nfür die\nDie Komidie in Amerika hat\narbilité asserv durt\nelt überlegent in\nBetting der Juice Europas\".\ndiree Worbs noch relisament\nNon insulan eich bue The Lando\nmehr as letsten, -- die\nde Kukunft likekt. Wir eleben,\nHeben - dem Xammu disare Ke-\nPrincide grantigt Els Judisches\nin Leben Bewegongen\nlichkett ist. Re us\nWess nirbs alive truet, Jetal us.\nminuse gribi befor, within Nine-\nKomiten für Nationale Befreiung\"\nZwelfel, date dinen Leistungen Car\nmillelhar vor der nach\ndie VIII alle tirt\nbranch bine mit der Judischeo Not\n(der Name Est gewäblt in Anleh-\nSara share Passe FOB wesign\ndie Sache who dass\nEe WIND feeslich beine\ngetriehen wird.\nbung an das Komi-\nWuchen livil der Terror winder aus-\nune storm Para MAINE\nbichier Weg sein, de der Evint\nter Im Algive) bet milgetellt, dass\nAle Zeit bat, en etch\nWir eriebtee vertage\nIlle Sarbo wind alser nuch totler:\ndes Tereinigten aven\nPM des Ovivände der früheren Irs-\nmit after Millein EN\nWorks das verricate\nKin driver Komities\nfür die Zubunft - - also\nplanterm Gesandschaft in Weshing-\nDerma wird de\n410ck to Ramella hel dem indre\nare jungo Kri -\ndie Inversio in are **New\nfor für 63,000 Dollar\nInvestory subwere Opter kosten, Bise\nalle Tater - gibt ww.\ndieser Tage kan Passe in Par\nYork Times\" and\nbetter, tin - also könflige Grandi-\nwind and des betruffenen Ländern\nare Drabbrieft und\n-- und legist in of\nneb asch ats In Pa.\nwhat des Judenstasts clarorics-\nschool Alser der\ndie in Vel Avir an allen\nflairibe der americant\nInstina. Bier let der on, no -\nten. Woher die Leute das Geld\nAmericant des Enterbridungs-\nselien offentieb sugrichingers MEF-\narbre Registrang such der Tir-\non Ingred relate LANA, was sin\nbaben, wind nirht enthail. HAME:\ndes, Die Kimpler für\nWinn may wills. wie school\n:- abricber Leislung and and\nplus um Europe, det Le disses\nHche remativortillen\namot suf allen Selion, rue West\nProteit? rúbera wich offentiks\nhente lat. surb nur sines Plug-\nnationates\nGremien Amerikas slad veo dirmi\nand net, Nurd und sur -\ndes Marden an card judishen Per\nglata au und where\ngrn kim.\nKombine abgerückt. Das 20dische\nbereits angetangen bail,\n(lainten. Mill Bwai wandte airh\nwirhties Retson\nVolt and der wind In\ndirfic, let nicht swelfethaft.\ndiving Tape dagagen,\ngreift man sich an den Kept and\nDer Enfail files en. dies - des\ndoes e Immer north\nfrugt sich, was de signallich 100\nden Auguo des\nDeffentlicheit\nDie\nsem Wachewnde metrere sech-\nIss Lande die sich\nWelst is einer Konfor\nGeschichte knoote das The\nsignte Geburtslage gefeiery werden.\nFür ans Joden will das\nBer arbitared anneb-\nreas\", die der Maan in Par\nme the cineo arin.\nAn dover wir in\nPost vine besendure Erlenerung\n- ded autche, als Cield or-\nInstine subjett, crbiarte er. et relee\nwis abilien Jonge Leute pain Ame-\nenter Holko des Manner or der\ndaran, dos each protein\nprisent lasses, dess - jst blar,\nals Delegierter des\nnka an der Xase\nKrainher und Mildner swelle Der\nkampt die Frage des ge-\ndass se diverse Dingle Geld per\nWar Return Board each der Tar-\nUnverständlich wird die Sache\ndestarber\nstellt wird. Warre eind with aux\nMrt. live star - neb eln as-\nMEL, elser Institution, die mit dem\ngrat, wean mas Beirt, dass ein Mit-\ngewere and use such Beute one\nAmgrica gefishre worden? Die\nderow Kapitel we\namerikanischen Bebatient ver-\nglied diverse Komiteen ale officiel-\nverbusire let! Run Blumenfrid.\nAntwort kam destrict INTORE: \"The\nden, 20m Ini sehr lescht\nbunden Ist. an dessen Spitze be-\nler amerikanlecher Delegierter im\nBein Griverising let for was da\naux mie selh ein Reich von Prie\ndass diese Levie auch Geld aue\n&santlich steht. Ja-\nSahen Osten fungiert. Man musa\nAsimes 248 einer\n7g da Bettiges Valk.\" Commit\ndem Austand Xwar gibt\ntotinsky die Errichtung\nbefürchien, dase se etwas das Pre-\nBücksches ther du 35\ndi mas nicht betreit. Man lime-\n- bei derantigen gybelmen Ver-\ndieses Board not ein Verdienst der\nalige dieser Jonglings bei unertab-\nJahre sine Zele der\nminimi demit die ackwere PRINT,\nbilades belan kist festatellbaren\nPropagabde des\n- Leuten beht und die Aufäll-\nBan wie ser winige ENTRE Wir\nmit Freihelt das Richilge\norganizatorischen Abgressangen,\nmiless für die Retiung der Joden\nrusgarlielt derei erschwert, die\nwidness dem chemall-\nProthell verpfichtet.\nwhere gerade la disert Woche worde\nEuropes\", das von stalgen jungrom\nMcb between, die Jugred ven\nEPR der LIOGOA, als\nDieses Dewnsiterin howegt heute\ntwicent, weiche merkwürdigen den\nin Amerika\ndes Wegen des Irgun Zwal Leami\nkicines Zeichen unserer Deabhar-\ndie besten Gelster niker Volsee der\nTerroriation Grup-\ndel worden arl and sich as den\nhell and Pressitschaft, elmen Tell\nund vun terwandlen Tendenses\nWelt. Blu emilion delhi Weg. um eich\nper im Ausland lhr Unweren trei-\namerikanischen Kongress and Be-\nnamer healigen Artigation, in deni\nabsobringen.\neach dom Sing dre Errongenen\nMIL Anfachen erregte\nnat gowandt habe, En bundelt\nMesschen am Worte kommen, die\nWordig Ell erwelsen. No kemost above\neln Unlef des\nwich Mer em disselben jurgen\ndeo gasera närr einen Tell\nfür des Menschen (and für die\nalschen Journallaten Pierro Yas\nLeute, die Yes Passage als die\nIn den letaten Tageo wurde die\nWegre mill the P\nVilibert) sirkt our darant an.\nPassent, sines sell Jahren radikal\nVertragemaleule des Irgan Swall\nArbeit der jödischem Frauen and\ngangen stad. Wir glashes, dans\nbesaure Einrichtungen #11 arbatten,\npro-siontatiaches, above anscheinend\nLeami Normale Paid-\nMidelen, die to militárische Por-\nliber das Personiche bloase n\nwondern such beaser EU worden.\nnaiven and über die wirklichen\nstinement, die unter dem Terror\nmationes singrizeien stnd, mean-\nsuch für Anssesstrbende, die die-\nWeen die Menschbelt aus dem\nZusemmechänge alemals recht to-\ndes Irgun Ewai Leunl leiden, wer-\nfach besonders gerühmt. Diser\neem Krise nicht angebilien, und\ngeneratigen Blutbad nichta termt\nformiertes Mannes der etch, wie\nden sicht wis Organe\nPraneo haben eich all\n9. 1)\nRegraded Unclassified\nMr. se. MAI 1644\nWendet Euch mit\nDr.\nand\nHav\nFlack-\n-\nin\nder\nR.T.A.\nan die Mitglieder des\nmana eled aus London much\nInteriore sess, does if\nBADIO TRUNSICIANS ASS. T.A., P.O.B. serve\neffor und betwen der\nis des Tagen sime the\nExcluiive der Jewish Agency Be-\napproved mill dom District Code\ntimes - Der\nmissifore above dim Wabiteredo\ndem New Vorker Das-\n- die elher Wahl-\nDer Jerusalemer Kehilla-Skandal\nnewberg, let su elnem Beauche has\nsommission für die Iriah THE Tel\nPallation und hat\nAVIV haben werde. in Humal\nIn der vorigen Woder beachäftig\nsuch heute aleha danach la disner\nin since Zusammenkuaft der Jeru-\n(ine feed cline auswordenlich\nle sich nachdem surá die Mapol\nverfahrenen Nituation jadech -\nkides sich die Allja Chadesche\nsalemer Journalisten Buricht ther\nder \"Allja Chedasche\" lat\nstark beauchte\n--- Besion sine ai-\ndie judische Lego in Amerika et-\nand Ihre Vasd\nsebure und sur Rettung der Kehil-\nstatiol. J. Heftman, der Chef-\nlong given die resktionêrve Mass-\nsiedergelngs hat - die guamle\nin berrit, eine geordarte Pub-\nredakteur des \"Habaker\", wurde\nnahmen der Orteverwaltung stalt,\nreng der Geschäfte für else Deber.\nbehräische Presso in\nno oberachmen, mit dem\nder Tol-Aviver\nsite elsen Grasstell der Bevölke-\nand Leitarithein mil der Bituation\ndiscigen Kiel, when Jede versign-\nwinder-\nFUNE des Wahirrehten termiten\nin der Kehilis Durch\nrang Neumables\ngrownhit. Das enrolige Land:\nwill Für die Allja Chadasche\ndes Vurgeben der Allja Chadasche\nDiese Bereitschaft hat sur Var-\nAs 18. Mai überfieien Mitglieder\nsprach R.A. Have Kaufmann. Der\ndans die\nIst - erreicht worden, dara welle-\nGruppen oder mindratens eine -\ndes \"Ingun Ewal Lean!\" die Ra-\nProgressive Block in Choders ver-\nste Kreise jetat vielleicht doch ein-\nreichende Annahl ven thoen, was-\ndiscription in Ramalish Bie waren\nleogie die Abbations von Wablen\ntasiées beginen, dass man Prob-\nred dieser mit una\nles Lastwagen aux Per\nin die Mortah Meberit, die anit\nleme unserve affentlichen Lebena\nsusammenarbrites, sich -- den\nwirhtiguies Kommissionen betelli-\nrach Tikwah grkummen, Un der\nscht Johren Im Amt let, Der An-\nnicht our mit juhrolangen Ver.\nEYES und vor altrai sufert mit use\nVerfolging durch die Policei su\ntrag wurde van der Mehrheit ab-\nschiebengen, Erpressing und\nsusammer eine neuse Wahlkommis-\nSchawuoth\n(Ports,\nY.\n8.\n1)\nenigehen, batien sie die Strasse mil\ngelebat. Rechevelb beabsichtigt,\nKubhandel 10sem kano. Allgemen\nsion bilden.\nfür die jungeren Mmscheo, die\nMineu Tersportl. Iler Chauffer\ndas Statut FOR Hamat Oan mit\nand die Empirang abor die Cufa-\nDer sinalge Weg sur Ordnung\naux anderen her.\nder der Kehilla\nund der Turnote eines Taxi, das\nelnigen Aundersagen Ell überneb-\nhighelt due Vani Leami, der vines\nand erhie demokration Newah-\ngekommer wind, wichtle súlas kuma,\nnot slue Mine auffulir, warden\nmen, womit such in dissem Ort\ngrossen Twis der an divo\nlen grains den Patzungen der\nefface Elshlick - bekommes in\nDie Ungster konn-\nela Grossiell der Bevilkerung um\ngebaltharen LEARL\nKorset Jisrael, Diese Seuwahlen\nJeno Atmosphare, aux our FOR\nmissen com ersten genetzlich müg-\nim live Abeicht, das Redinsen\navise demokratischen Hechte g\nin cult der\nBehen Termin statifiedre.\nas Johren der dentsche Electronic\ndong all nicht wi-\nbrocht worden warde. Im KI-\nLandwelelting has die Alija Cha-\nhervorgewachten ist, demon\nIndem die Allja Chodascha the\nwirklichen, - ibere alwe,\nloss Negbe wurde ela Bruanen mit\ndesche Jurusalem Ihre Methugnah-\nBereitschaft sur est\nbende Werle such Mate liter to\nsorkehot all fivire. Im\neloce von 100 Kabik-\nme an den Vorgingen in nachste-\nGeschäfte quaspricht, erhiärt de\ndiscom Landa tEm ihr Wirkwor\nmembers mill der Affire wurde ele\nunier pro stunde in Betrieb\nhender Erklärung. die affentfich\nnochmals ausdrücklich, dans die el\nwht kimples.\nsetat. sturmachäden balen die\nteloign Verantwartung für den jell\nAni to Will-\nplakatiert wurds, will folat prüst-\ngrachaffenen Zustand\nEla YES Bummer\nrend sich der Jrgan Zwai Leant\"\nKiburtin Neve Kitan, Tirst Xwi\nsiert:\ntragen, die die Wahlen\nfrid Ind, não sich May\nto Afficied mil diser Tal\nund Sde in Emek Both\nhaben, sewie diejenigen, die durch\n-In dom letsten Plakat. das -\nBred etail Dichter und Kindler\noverant, bil de Stero-Gruppe der\nSheam am 11. Mal critten. Die\nthe actwächliches Verhallen grant\nVasid Makehills in des Strassen\nüber eine less\nYOU Weited. due Product joint\nla gloicher Form\nBrute, Welnberge und Gebänder\nJerusairms angewridagen wurde,\nmer weitergebende (temoralisierang\nany\ndont die Ermordeng der\nworden betroffen. - Das përdiche\nhelest - würtlich:\nherbeigeführt haben.\nim altre I'me wigh WAT and\nFlesch and Golemits our\nEmail Chefer wind mis der Hospital\n..Nach fast sweljährigen\nJuden nem mit liet\nis der das Indian eich tumpt\nthe Kanta gobt. the Errichtung\nPetark Tikwah-lielfa\nachwierigen\nder Errichtung einer grandheiro\ngen has der Vasid Hakabilla be-\nKebilla, bei der\nwürker als das domisterende RE\nriset\ndurch espe verbunden seln,\nschlossen, die Neuwahlen nicht\ndeman, was ... Grande gerichtet\nwill esta Aurti sels IN\nschaft für die Xell nach dem Krie:\nderem Berichtung durch den Solvi\nmehr EM vertagen und alin unter\nworden lst, bei der des\natten Emetänden am 24. 1jar die-\nain Sinch insurer (in\na plant de Krvis FOR júdiachen\nBonch begansen wurde.\nKehills!\"\n- Jahres (17.2.44) absubalten.\nwhichto derwiten as Jubré tired\nles hand Man beals\nDie rines Kinderderfen\nDer Vand Hakebilla aletat sich\nDie Alija tal lendi,\nist via typischer Wenijude, Nr\ndell Anschines an etne\nfür noo Kinder NOM Gewerbesche-\ngenötlet ,der Offentficharit su or-\nis der lare\ndase en kelse Mägtichbelt\ndela die Degreeurg ult dem Del-\nabsliche die vur\nIvn und verschladenen Wirtschafte-\nmehr siebt, selar Arbeit forten-\nArbeit our Verfügung 20 stelled\nund die la\nour Zell mit VAB\nwind TOD der Agudal Its.\nsetzen, da selne Amteria schon\num durch sufortige ilem\ndie grandlegenden\n100,000 Prood to Angypton gegrün-\nand geplant. Seche Todesfille\nselt swel Jahren abgelaufro let.\"\ncinsigen ARRIVER \" Enden, der will\ninfolge waren each amt-\nEs dem van der Wahlkammission\nNelative frücklier war-\ndel worde, and die Eroffang eimer\nKustin\nfestgraptzion Termin wurde sur\nde. Bir las du restrur Grin, der\nprivation\nRichen Missellongen in der letaten\nelne Liste eingereicht Liste\ndes kenn\nneils des Ellagon forseble\nStagded Masdi Amble Der Dia-\nWoche su verseichnen. Ee bandels\nder Allja Chadaschs: thre Kandida-\nsie die\nNe doss him der just\neleh durrhwer non Araber. Der\nten getten damit nach dem\nist hack neumwo-\nfur diesen - wird de\nals gewählt.\norders queeter THE\ndearticher Dower die\nJischew unfasst nach einer Bta-\nWeg gehen and WPIE the\nDiese Taturlien terrisen dem\natwas under stehen plu givill\nworde in alive Betrieben to\nListik der Juwish Agency per Ende\nJerusairmer Jischow mij allm\nmis und agril.\nUnder Permen, nämheh etc. Für-\nTol-Avic und Jerusalem\n1943 031,000 Menarbra. Die For-\nKlarkeit, dass die Allja Chadacter\nchen van andure Salton\njudischen Gettice Wir\nwinder 1351 Ton-\nderumgen der Labret narb elnem\nernathaft and mit guiens Willen\nan die Angelegenheiten der Kehil-\nnorh - stil in\nverdenken Prod besonders wirh-\n- bet die\nMonstegeball waren\nis ist, dans sie \"\nmarbé wentere. Finan\nlige\nmill\n- Jahre\nDeprestand von Deraing in der\nernst nimmi mis den Grundsätzen\nnicht, se with all dies\nletalem Signature der Hanbaleh des\nder Demokratie in Jischow, with-\nden alles\nLe-\nRampt in dem ele\nrend andere Gruppen Ihr Spiel mit\nherea and Druken, THE Juilen\nno Serbrichten worden vom Leiter\nWast Leuml. Die\nder Kebills und mit thren Hgeben\njetzi in Insuration surde de\ntem her - behen allow\ndes P.I.O., Mr. beli einer\nmuse words suf nácholo Woche\nWählern getrieben haben,\nsequentes Klama\nin Tel-Axiv de-\nvertaget. - Die Furwerge für ent-\nBille Alija Chadasche has nicht\nAnderen. wes wir personal suris\nErfale le der\nnach der Herrschaft in der Jerusa-\nWir - Mrix\nDie Pardessanim be\n(asseme Soldates war Gegenstand\nIrmer Kehills gestrebt und strebt\nsiell MI.\nder in l'alhering unter que\nben - der Registrom sine An-\nvon Beratangen wischen drm\nwall, our das herábelato - die\ntriber vum 11 Proud pril Dunam\nWand Leurni und der Registroug\nTage-\nIn Tvl-Avly faid da-\nKin Verein für Tourtallk, det\nmi vs such\nvaluet vine Respechang swischen\nsich nm die Entwinklong des\nSoeben erschienen:\n----- dellite au\n316 Charch and judischen Par-\nPremdeurerkehre nach dens Krie\nlier wieht direct\nstall Der Lebens-\nen kjimmera soll, wird in THEATH\ngegrändet. Die Ereduring Art\nSIEGFRIED MOSES\nmit - Jude em too bell,\nist im April um starn\nstat via dra information\nPunki getativa. Bie Geschäfte-\nFriedhofts тел Tel-Avir darch den\nWirkons Int. dem whell an -\nminten in küneen nach\nAnkanf von 40 Donam bei Nach-\nvisit la der l'alestine Camile TVE\nlat Jischok wird von der Chewrs\nPay die gam-\n- WHI, 100\noff-nisichten Verordnung um 10%\nRadioche geplant. pri-\nDIE\nles supender President Depresits\nworden. Ver den\nindient diears Varbalen, da\n--- su We\nWatten IIIP Assetath\nder in Prior sichende Baden für\nJÜDISCHEN\n---- Ishro - INL\nto Bomit time. Princh Thank\nbestimet lat.\nlest Lm der nn. de An\nNathania and in rinigm anderen\nDie 19. des pall-\nen specion, nie\nOrive winden lister Fal-\natinensischen Baschomer liminir\nNACHKRIEGS-\nwere die\nwird am at Mai in Tel-Arte er-\ndie\nund Kinverh's such not\nwhile patient under sled die ort-\naffect, Der Maine\nFORDERUNGEN\nJodes assilité Nor Bills walk =\nHelun litcher\nBlum crisielt via Deskerbreihen\nsin Benesch butte eleve\nsicht Der Yor-\ndue Koolge Von Schweden. dem en\nThe en doin of belashe\nsituraily der Zeniration Wahlkom-\nin Würdigneg der activediachen\nMar/May-1101 wird diese\nmile für jödische Florhtlings ein\nde\nilso The you Kr lak\n-Drte und skrin um die\nnild batte, Die\nder Ron-\nin rime Nation, die\nsowjetrussieche Ausstrilung wird\ncarld del Juilen des swelle\nfilkte beintiben. the Print für Eln-\nave Kairo nach Tel-Avis Sterführt\nupher and Subtotal war. Nile\nsprüche grave die Wallerverseich-\nund dort im BY\nIrgun Olej Merkas Europa Bitaon Ltd.\nnisse contr has 20 Mal -\nselgt worden. Bile\nmust Exem at wie\nDie unde\nder \"Habimah\" protestiones lb\n--- 16 der Name\nintentive pablication juist such, einem an die\nZu beziehen durch alle Buchhandlungen\nwith June wir\nartive with Kinselhellen Uber dir\never des\nare ell that am --------\nvos Kandidatenisten\nu. durch das Büro, T.-A., Rambamstr. 15\net since mill Haff-\nlienehmen des\nname and in die Zip:\nhad den Aluschlose sugenanter\nSchotmann während der Pre-\nBir-\nmiere dea neuen llabimab-Stückes\nachouse\nRegraded Unclassified\n175\nPable-\nCONFIDENTIAL FOR THE WAR REFUGEE BOARD FROM DUBOIS.\nThe following is the exact declaration agreed upon by the British\nGovernment:\nIntercross has communicated to the Governments of the United Kingdom\nand the United States an offer of the Hungarian Government regarding the\nemigration and treatment of Jews. Because of the desperate plight of\nthe Jews in Hungary and the overwhelming humanitarian considerations\ninvolved the two governments are informing the Government of Hungary\nthrough Intercross that, despite the heavy difficulties and responsibilities\ninvolved, they have accepted the offer of the Hungarian Government for the\nrelease of Jews and will make arrangements for the care of such Jews\nleaving Hungary who reach neutral or United Nations' territory, and also\nthat they will find temporary havens of refuge where such people may\nlive in safety. Notification of these assurances is being given to\nthe governments of neutral countries who are being requested to permit\nthe entry of Jews who reach their frontiers from Hungary. The governments\nof the United Kingdom and the United States emphasize that, in accepting the\noffer which has been made, they do not in any way condone the action\nof the Hungarian Government in forcing the emigration of Jews as an\nalternative to persecution and death.\n(Dictated by Mr. Warren over the 'phone to Miss Rhea, 1:00 p.m., 8/17/44)\nRegraded Unclassified\n175-1\nDEPARTMENT OF STATE\nFOR THE PRESS\nAUGUST 17, 1944\nRegraded Unclassified\nNo. 366\nCONFIDENTIAL RELEASE FOR PUBLICATION IN THE MORNING NEWSPAPERS\nOF FRIDAY, AUGUST 18, 1944, WHICH DO NOT APPEAR ON\nTHE STREETS BEFORE 7:00 P.M., K.W.T., THURSDAY,\nAUGUST 17, 1944. NOT TO BE PREVIOUSLY PUBLISHED,\nQUOTED FROM OR USED IN ANY WAY.\nThe International Committee of the Red Cross has communi-\ncated to the Governments of the United Kingdom and the United\nStates an offer of the Hungarian Government regarding the\nemigration and treatment of Jews. Because of the desperate\nplight of the Jews in Hungary and the overwhelming humani-\ntarian considerations involved the two governments are\ninforming the Government of Hungary through the International\nCommittee of the Red Cross that, despite the heavy difficul-\nties and responsibilities involved, they have accepted the\noffer of the Hungarian Government for the release of Jews and\nwill make arrangements for the care of such Jews leaving\nHungary who reach neutral or United Nations territory, and\nalso that they will find temporary havens of refuge where\nsuch people may live in safety. Notification of these\nassurances is being given to the governments of neutral coun-\ntries who are being requested to permit the entry of Jene who\nreach their frontiers from Hungary. The Governments of the\nUnited Eingdom and the United States emphasise that, in\naccepting the offer which has been made, thy do not in any\nway condone the action of the Hungarian Government in forcing\nthe emigration of Jewa as an alternative to persecution and\ndeath.\n### *** ---\nMides Chauncey(for the Sec'y), Abrahamson, Aksin, Borenstein, Cohn,\nDuBois, Drury, Friedman, Gaston, Hodel, Laughlin, Lesser, Mann, Mannon,\nMarks, McCormack, Pehle, Sargoy, Standish, Weinstein, Cable Control Files\n176\nDEPARTMENT OF STATE\nFOR THE PRESS\nAUGUST 17, 1944\nNo. 366\nCONFIDENTIAL\nFUTURE RELEASE\nNOTE DATE\nCONFIDENTIAL RELEASE FOR PUBLICATION IN THE MORNING NEWSPAPERS\nOF FRIDAY, AUGUST 18, 1944. WHICH DO NOT APPEAR ON\nTHE STREETS BEFORE 7:00 P.M., E.W.T., THURSDAY,\nAUGUST 17. 1944. NOT TO BE PREVIOUSLY PUBLISHED,\nQUOTED FROM OR USED IN ANY WAY.\nThe International Committee of the Red Cross has communi-\ncated to the Governments of the United Kingdom and the United\nStates an offer of the Hungarian Government regarding the\nemigration and treatment of Jews. Because of the desperate\nplight of the Jews in Hungary and the overwhelming humani-\ntarian considerations involved the two governmente are\ninforming the Government of Hungary through the International\nCommittee of the Red Cross that, despite the heavy difficul-\nties and responsibilities involved, they have accepted the\noffer of the Hungarian Government for the release of Jews and\nwill make arrangements for the care of such Jews leaving\nHungary who reach neutral or United Nations territory, and\nalso that they will find temporary havens of refuge where\nsuch people may live in safety. Notification of these\nassurances is being given to the governments of neutral coun-\ntries who are being requested to permit the entry of Jewe who\nreach their frontiers from Hungary. The Governments of the\nUnited Kingdom and the United States emphasize that, in\naccepting the offer which has been made, they do not in any\nway condone the action of the Hungarian Government in forcing\nthe emigration of Jews as an alternative to persecution and\ndeath.\nRegraded Unclassified\n177\nNEW\nYORK\nHerald\nTribune\nAUG 18 1944\nU.S. and Britain Agree to Help\nEmigrant Jews From Hungary\nWASHINGTON, Aug. 17 (AP)\nLernment of Hungary through the\nThe State Department announced\ninternational committee of the\ntonight that the United States and\nRed Cross, that, despite the heavy\nGreat Britain have accepted the\ndifficulties and responsibilities in-\noffer of the Hungarian government\nvolved,\" they will arrange to take\nfor the release of Jews and that\ncare of Jewish refugees from Hun-\nAnglo-American authorities will\ngary and see that they find tem-\narrange to take care of Hungarian\nporary havens of refuge.\nJews who reach neutral or United\nThe State Department said\nNations territory.\n\"the governments of the United\nThe announcement, made jointly\nKingdom and the United States\nwith the British government in\nemphasized that, in accepting the\nLondon, said that the international\noer which has been made, they\ncommittee of the Red Cross had\ndo not in any way condone the\ntransmitted to the governments of\naction of the Hungarian govern-\nthe United Kingdom and the\nmenrt in frocing the emigration of\nUnited States an offer of the\nJews as an alternative to persecu-\nHungarian government regarding\ntion and death.\"\nthe emigration and treatment of\nNotification of these assurances,\nJews.\nthe department said, is being\n\"Becavse of the desperate plight\ngiven to the governments of neu-\nof the Jews in Hungary, and the\ntral countries who are being re-\noverwhAming humanitarian con-\nquested to permit the entry of\nsiderations involved, the two gov-\nJews who reach their frontiers\nernments are informine the\nfrom Hungarv.\nRegraded Unclassified\n178\nThe Washington Dost\nAUG 18 1944\nHungarians'\nOffer to Free\nJews Accepted\nThe State Department an\nnounced last night that the United\nStates and Great-Baitain have ac\ncepted the offer of the Hungariar\ngovernment for the release of Jews\nand that Anglo-American authori-\nties will arrange to take care of\nHungarian Jews who reach neutral\nor United Nations territory.\nThe announcement, made joint-\nly with the British government\nin London, said that the interna-\ntional committee of the Red Cross\nhad transmitted to the govern-\nments of the United Kingdom and\nthe United States an offer of the\nHungarian government regarding\nthe emigration and treatment of\nJews,\nThe State Department said: \"The\nGovernments of the United King-\ndom and the United States em-\nphasized that in accepting the offer\nwhich has been made, they do not\nin any way condone the action of\nthe Hungarian government in\nforcing the emigration of Jews as\nan alternative to persecution and\ndeath.\"\nNotification of these assurances,\nthe department said, is being given\nto the governments of reutral\ncountries who are being requested\nto permit the entry of Jews who\nreach their frontiers from Hun-\ngary.\nRegraded Unclassified\n179\nTimes\nTherald\nWASHINGTON,\nAUG 18 1944\nPersecutors Condemned:\nU.S. and Britain to Aid Jews\nUnder Pact With Hungary\nThe United States and Greats as an alternative to persecution\nBritain last night accepted an\nand death.\"\noffer by the Hungarian govern-\nSecretary of State Hull has on\nment to permit Jews who have\nseveral recent occasions de-\nbeen subjected to persecution in\nnounced the persecution and \"mas-\nHungary to leave that country\nsacre\" of Jews in Hungary by the\nprovided the Anglo-American coun-\nNazis and their Hungarian\ntries care for them.\nQuislings.\nThey said in & joint statement,\n\"The entire Jewish community\nhowever, they wanted to empha-\nin Hungary, which numbers near-\nsine \"that, in accepting the offer\nly 1,000,000 souls, is threatened\nwhich has been made, they do not\nwith extermination,\" Hull said on\nin any way condone the action of\nJuly 14. \"The puppet Hungarian\nthe Hungarian government in\ngovernment\nstands condemned\nforcing the emigration of Jews\nbefore history.\"\nRegraded Unclassified\n180\nTHE\nSUN\nAUG 181944\nHUNGARY JEWS\nRed Cross, that, despite the heavy\ndifficulties and responsibilities in-\nvolved,\" they will arrange to take\ncare of Jewish refugees from\nWILL BE AIDED\nHungary and see that they find\ntemporary havens of refuge.\nThe State Department said \"the\ngovernments of the United King-\nUnited States And Britain To\ndom and the United States empha-\nsized that in accepting the offer\nCare For Budapest Exiles\nwhich has been made, they do not\nin any way condone the action of\nthe Hungarian Government in fore-\nWashington, Aug. 17 (AP)-The\ning the emigration of Jews as an\nState Department announced to.\nalternative to persecution and\nnight that the United States and\ndeath.\"\nGreat Britain have accepted the of-\nNotification of these assurances,\nthe department said, is being given\nfer of the Hungarian Government\nto the governments of Beutral\nfor the release of Jews and that\ncountries who are being requested\nAnglo-American authorities will\nto permit the entry of Jews who\narrange to take care of Hungarian\nreach their frontiers from Hungary.\nJews who reach neutral or United\nNations territory.\nThe announcement, made jointly\nwith the British Government in\nLondon, said the International\nCommittee of the Red Cross had\ntransmitted to the governments of\nthe United Kingdom and the\nUnited States an offer of the Hun-\ngarian Government regardig the\nemigration and treatment of Jews.\nTemporary Havens Assured\n\"Because of the desperate plight\nof the Jews in Hungary, and the\noverwhelming humanitarian con-\nsiderations involved, the two gov.\nernments are informing the Gov.\nernment of Hungary through the\nInternational Committee of the\nRegraded Unclassified\nNEW YORK DAILY NEWS - August 18, 1944\n181\nU.S. and Britain Agree\nTo Aid Hungarian Jews\nWashington, D. C., Aug. 17 (P).-The State Department\nannounced tonight that the United States and Great Britain\nhad accepted the offer of the Hungarian Government for the\nrelease of Jews and that Anglo-American authorities would\narrange to take care of Hungarian Jews who reach neutral\nor United Nations territory.\nThe announcement, made jointly\nThe State Department said \"the\nwith the British Government in\ngovernments of the United King-\nLondon, said that the Interna-\ndom and the United States empha-\ntional Committee of the Red\nsized that, in accepting the offer\nCross had transmitted to the\nwhich has been made, they do not\ngovernments of the United King-\nin any way condone the action of\ndom and the United States an of-\nthe Hungarian Government in\nfer di the Hungarian Government\nforcing the emigration of Jews\nregarding the emigration and\nas an alternative to persecution\ntreatment of Jews.\nand death.\"\nRegraded Unclassified\n182\nNew York Post\nAUG 14 1944\nBritain OK's\nRescue of\nHungary Jews\nBy WILLIAM 0. PLAYER JR.\nPost Staff Correspondent\nWashington, Aug. 14-The U.S. fovernment has been\nformally notified by Great Britain of its acceptance in prin-\nciple, of Hungarian Regent Horthy's recent offer to permit\nthe emigration of various categories of Jelvs from Hungary.\nConsultations under way be\ntween the two governments have\nThousands Already Admitted\nnow progressed to the stage of\nHowever, though it has not\nworking out machinery to imple-\nbeen widely publicized, since the\nment such an emigration pro-\nbeginning of the war up to last\ngram and all interests concerned\nMarch, the British had admitted\nare hopeful that in the very near\napproximately 51,000 Jewish\n0\nfuture-possibly within the next\nrefugees plus wives and children,\nfew days-something definite can\nto Palestine under the provisions\nbe announced.\nof the White Paper, and it is es-\ntimated that approximately 1,100\nSome Delays Unavoidable\nrefugees a month, or approxi-\nAuthorities concerned admit\nmately 5,500 more, have been ad-\nthat there have beèn delays in\nmitted since.\nacting on the Horthy offer, but at\nApproximately 20,000 addition-\nleast some of the delays have\nal Palestinian certificates, fur-\nbeen based on questions of mill-\nthermore, are still outstanding\ntary security and hence have\nand available under those provi-\nbeen unavoidable.\nsions. After this quota has been\nHorthy, in a proposal transmit-\nexhausted, the British promised\nted to the U. S. and British gov-\nlast Nov. 10 they will be willing,\nernments through the Interna-\nwith the consent of the Arabs,\ntional Red Cross, offered to re-\nto permit further immigration.\nlease from Hungary all Jewish\nIn addition to the approximate\nchildren under 10, Jewish holders\nly 56,500 refusees admitted to\nof valid visas to other countries\nPalestine, the Fritish have, since\nof reception and all Jews who\nthe start of the var, received ap-\ncould obtain British immigration\nproximately 70,000 refugees di all\ncertificates to Palestine.\nsorts (but mostly Jews) into the\nThe U.S. government, as repre-\nUnited Kingdom; and, at refugee\nsented by the War Refugee\ncamps in the Middle East have\nBoard, naturally is eager to take\nreceived approximately 25,000 ad-\nfull advantage of the Hungarian\nditional from Italy (mostly Yugo-\nproposal to send Jews to Pales-\nslavs, plus some Jews); 24,000\ntine; but American authorities\nfrom Greece and other island\nreadily understand that the Brite\nareas (various nationalities in-\nishe with their long-standing Pal-\ncluding Jews), and about 2,000\nestinian problem to consider,\nfrom Spain (virtually all Jews).\nshould be somewhat on their\nMost of these camps have\nguard against any action which\nsince been taken over by UNRRA.\npossibly might upset the delicate\npolitical balances there.\nRegraded Unclassified\n183\nThe New York Times.\nAUG 18 1944\nILS. AND BRITAINAID\nof the refugee program would be\nworked out to accord with the\nnumbers of persons involved\nEWS OF HUNGARY\nWhile accepting the arrange-\nment, the official announcement\nseverely castigated the Hungarian\nAccept Budapest Proposals to\nGovernment for invoking regula-\ntions that make necessary the\nOffer 'Temporary' Haven to\nflight of Hungarian Jews.\nPersecuted People\nTEXT OF STATEMENT\nThe State Department's an-\nnouncement follows:\nBy CHARLES HURD\nThe International Committee\nSpecial to THE Hew Your TIMES.\nof the Red Cross has communt-\nWASHINGTON, Aug. 17-The\ncated to the Governments of the\nUnited States and Great Britain\nUnited Kingdom and the United\nwill give \"temporary\" refuge to\nStates an offer of the Hungarian\nany Jews able to leave Hungary by\nGovernment regarding emigration\nvvirtue of regulations set up by\nand treatment of Jews. Because\nthis enemy country authorizing the\nof the desperate plight of the\nemigration of Jews, the State De-\nJews in Hungary and the over-\nwhelming humanitarian consid-\npartment announced Mere tonight.\nerations involved, the two Gov-\nThe two Governments have noti-\nernments are informing the Gov-\nfied Hungary, through the Red\nernment of Hungary through the\nCross, that It will give haven to\nInternational Committee of the\nthese refugees, and has requested\nRed Cross that despite the heavy\nneutral countries to facilitate the\ndifficulties and responsibilities In-\npassage of such Jews as reach\nvolved they have accepted the of-\ntheir borders.\nfer of the Hungarian Govern-\nThe State Department's an-\nment for the release of Jews, and\nnouncement made clear that the\nwill make arrangements for the\nplan did not involve preparation for\ncare of such Jews leaving Hun-\npermanent emigration. It spoke\ngary who reach neutral or United\nspecifically of \"temporary havens\nNations territory, and also that\nof' safety.\" using the same term\nthey will find temporary havens\ntat has been applied to refugee\nof refuge where such people may\nlive in safety.\ncamps set up throughout the Medi-\nNotification of these assurances\nterranean area for refugees from\nis being given to the neutral coun-\nYugoslavia, Greece and France.\ntries, who are being requested to\nThere was no comment on a\npermit entry of Jews who reach\nquestion whether the agreement\ntheir frontiers from Hupgary,\nwould mean that Great Britain\nThe Governments of the United\nwould admit Hungarian Jews to\nKingdom and the United States\nPalestine in the same manner that\nemphasize that in accepting the\nrefugeet already have been admit-\noffer which has been made they\nted to a refugee camp at Oswego,\ndo not in any way condone the\nN, Y., but the commitments left\naction of the Hungarian Govern-\nthis as an open question.\nment in foreing emigration of\nJews as an alternative to persecu-\nIt appeared probable that details)\ntion and Month\nUnclassifie\n184\nSan Salvader, K1 Salvador, August 17, 1944\nNo. 1914\nSECRET\nSUBJECT: Safeguarding of Lives of Holders of\nSalvadoran Passports or other Documents.\nThe Honorable\nThe Secretary of State\nWashington\nSir:\nwith reference to my secret airgram no. A - 327 of\nAugust 10, 1944, regarding the safeguarding of lives of\nholders of Salvaderan passports or other decuments, I have\nthe honor to transmit herewith & translation of a self-\nexplanatory note date August 15, 1944 from the Salvaderan\n!linister for Foreign Affairs to the Chief of the Swies\nFederal Pelitical Department, Division of Fereign Affairs,\ncencerning the holders of such documents in Husigary.\nRespectfully yours,\nWalter Thursten\nEnclesure\nTranslation of note\ndated 8/15/44\n711\n00/min\nRegraded Unclassified\n185\nEnclesure to despatch no. 1914, dated 8/17/44, from the\nAmerican Babassy at San Salvador, n Salvador, on the\nsubject: Safeguarding of Lives of Holders of Salvaderan\nPassports or other Decuments.\nTRANSLATION\nMinistry of Fereign Affairs\nRepublic of EL Salvador\nDiplematic Section\nA - 800 - D -\nSan Salvader, August 15, 1944.\nExcellency:\nI have the honor to prepose the fellowing bases to\ngevern the representation of Salvaderan interests in\nHungary, which Your Excellency's Government kindly ac-\ncepted:\n(1) Salvaderan passports or other decuments held by persons\nwho are in Hungary subject to persecution, will be\nrecegnised and cenfirmed;\n(2) The Hungarian Government will understand that persons\nwho passess these passporte or other decuments will\nbe accorded the treatment, privileges and immunities\nto which Salvaderan nationals have a right, and\n(3) The United States of America will negetiate the exchange\nof these persons.\nI request Your Emellency to inform - whether your\nGovernment is in agreement with such bases, and to accept\nin advance my thanks for your kindness.\nI renew to Your Excellency the assurances of my\nhighest and nest distinguished censideration.\n(Julie B. Avila)\nHis Emellency the Chief of the Swiss\nFederal Pelitical Department,\nDivision of Foreign Affairs,\nBern, Switzerland.\nRegraded Unclassified\n186\nPARAPHRASE OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmerican Embassy, London\nDATED:\nAugust 19, 1944\nNUMBER:\n6521\nCONFIDENTIAL\nWar Refugee Board sends the following for Dubois.\nMessages 6607 and 6609 received. Heartiest congratulations.\nKindly express our appreciation to the Ambassador. The joint\ndeclaration text is satisfactory as transmitted in your 6609.\nIt is being released concurrently here. We do not propose the\nseparate release of text of note delivered to Intercross by the\nUnited States Government.\nHULL\nRegraded Unclassified\n187\nNMC-350\nPLAIN\nLondon\nDated\nAugust 17, 1944\nRec'd 11:20 M.M.\nSecretary of State,\nWashington.\nus URGENT\n6626, Seventeenth\nFOR FEHLE WAR REFUGEE BOARD FROM DUBOIS\nPlease reply most urgently to my 6625.\nWINANT\nWSB\nRegraded Unclassified\n188\nGNK-707\nPLAIN\nLondon\nDated August 17, 1944\nRec'd 9:10 m.m., 18th.\nSecretary of State,\nWashington.\n6663, seventeenth.\nLONDON TIMES of today carries article stating that\nItalian Government has approved in principle request\nby IGC that certain non-Italian refugees in Itely be\nnaturalised as Italism citizens one be allowed to remain\nthere. Vice Director IGC states this Italian action\nwas taken after representations by IGC representative\nin Italy who acted on request of certain non-Italian\nrefugees.\nWINANT\nJT\nRegraded Unclassified\nHE-638\nPLAIN\n189\nLondon\nDated August 17, 1944\nRec'd 2:10 ..m., 18th\nSecretary of State\nWashington\n6664, Seventeenth\nReference Embassy's telegram number 6612, August 16, regarding Fourth\nPlenary Meeting of inter-Governmental Committee on refugees.\nPlenary Committee net for second sitting 11 a.m. August 17, Remaining\nitems on agenda were disposed of as follows:\nPolish Ambassador as Chairman of Sub-Committee on Rules reported the\nfew minor alterations recommended by Sub-Committee and these were unanimously\nadopted.\nCommittee on Nominations proposed the following for membership in Execu-\ntive Committee: Representatives of United States, United Kingdom, Russia, Nether-\nlands, France, Czechoslovakia, Brasil, Canada, and Mexico. The representatives\nnominated were elected without dissenting opinion.\nSession adopted unanimously resolution affirming principle of cooperation\nbetween ICC and non-Covernmental organizations. Polish Ambassador urged that\ngreatest possible use be made of such connections as IGC had with voluntary re-\nlief agencies especially Intercross. Pointed out that refugee camp at the Resion-\nstadt originally proclained by Germans as a \"model Chetto\" was nothing more than\n& decoy since many inmates had been deported for execution in Poland. Suggested\nthat Intercross might well publicise its knowledge of real purpose of camp and\nconditions therein. He remarked further that as the Germans saw imminent defeat\nthey were redoubling efforts to stamp out classes of persons which would be in-\nfluential in forming future policy toward Germany these classes including intel-\nlectuals and the \"elite\" as well as Jews. He felt that this situation was exceed-\ningly dangerous and that it was time for all Governments to reiterate emphatically\ntheir determination to see that Germans guilty of persecution should not escape\npunishment.\nReplying to this speech Chairman stated that suggestion regarding all\npossible cooperation with voluntary agencies would be referred to Executive Com-\nmittee, and that IGC was in full sympathy with Polish Ambassador's remarks, reso-\nlution was then unanimously adopted.\nSir Herbert Emerson's nomination as Director of IOC had already been\nmade by Executive Committee. I proposed this nomination be accepted. Lord\nWinterton seconded and took occasion to pay tribute to work of Myron Taylor.\nFrench representative supported nomination and thanked Committee on behalf of\nProvisional Government of French Republic for work it had done for France and\ngave assurance in short while France would no longer need to call on IGC for\nassistance but would itself be able to assist IOC. Emerson's election as Director\nthen unanimously voted. Chairman notified him in complimentary speech and\nEmerson returned thanks assuring Committee of his continued efforts and praising\nwork of colleagues on Executive Committee and office staff.\nRegraded Unclassified\n190\n- #6664, Seventeenth from London\nCommittee unanimously adopted resolution to refer study of drawing up\nform of travel documents for stateless persons to a committee on experts to\nbe appointed at the invitation of Director by Governments of Argentina Belgium\nBrasil, Chile, Caechoslovakia, France, Poland, United Kingdom and United States.\nChairman read note passed to him by Russian delegate stating in substance\nthat since Russian Government had no relations whatsoever with League of Nations\nit must reserve its decision to cooperate with League as provided in rules of\nCommittee and resolution just adopted. Chairman assured Russian delegate this\nreservation would be duly recorded.\nBrasilian delegate proposed vote of thanks to Chairman in complimentary\nterms to which Chairman rade appropriate reply. Plenary Session then adjourned\nit being exactly noon.\nWINANT\nHTM\nRegraded Unclassified\nJK\nAugust 17, 1944\n191\nDistribution of\ntrue reading only by\n7 p.m.\nspecial arrangement.\n(SECRET W)\nAMLEGATION,\nSTOCKHOLM.\n1644\nThe following for Olsen is WRB 75.\nPlease transmit paraphrase of the following message to\nWilhelm Wolbe, 11 Olefagotten, Stockholm, Sweden.\nQUOTE Reported 7000 Lithuanian Jews evacuated from Kaunas\nto East Prussian border for slave labor fearful extermination\nwill follow. We ready meet every obligation effect their rescue.\nPlease utilize every appropriate method available save meximum\npossible number.\nGroup of 1200 including Rabbis religious leaders evacuated\nfrom Hungary through Slovakia now reported in concentration\ncamp at Belsen Bergen near Hanover. Danger imminent deportation\nto death camps. Doing everything to effect their rescue. Vital\nyou immediately (1) request Swedish government to grant Swedish\npassports or visas to save this group or (2) intervene Swedish\nGovernment and King direct immediate appeal to Admiral Horthy\nto demand repatriation of these 1200. If repatriation is granted,\nrequest that their transportation to Hungary be accomplished\nin conditions insuring survival and that on their trip they be\naccompanied by representative of Intercross, Swedish Redcross\nor Hungarian Redeross to insure such conditions. Also that\nupon return to Hungary, they be treated under terms of relaxed\nregime pending emigration. Enlist cooperation of Olsen and\nRabbi Ehrenpreis. The lives of this group dependent on your\naction. Vaad Hahatzala Emergency Committee. UNQUOTE\nTHE FOLLOWING FROM WRB FOR OLSEN.\nIf you deem it advisable, you may actively support the\nabove requests to Swedish authorities.\nHULL\n(GLW)\nWRB:MMV:KG\nNOE\nSE\nEE\nS/CR\n8/17/44\nRegraded Unclassified\n192\nDistribution of\nAugust 17, 1944\ntrue reading only by\nspecial arrengement.\n9 p.m.\n(SECRET W)\nWar Refugee Board\nAMLEGATION,\nSTOCKHOLM.\n1646\nThe following for Olsen forms WRB 76 and is from\nPehle.\nI regret sincerely the tragic news conveyed in\nyour 3046 of August 11, No. 70 to WRB. I hope and\ntrust that the report received by you proves to have\nbeen erroneous, and that Vokietaitis will be rescued.\nI want also to take this occasion to congratulate you\non the imaginative and effective work you are doing\ndespite the most forbidding difficulties. We all\nappreciate keenly the initiative and ingenuity that\nyou have displayed, as well as the tireless effort to\nwhich your accomplishments testify.\nHULL\n(GLW)\nWRB:MMV:KG\nNOE\nS/CR\n8/17/44\nRegraded Unclassified\n193\nORIGINAL TEXT OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmerican Legation, Bern\nDATED:\nAugust 17, 1944\nNUMBER:\n2834\nCONFIDENTIAL\nPlease transmit the following message to Isaac Sternbuch,\nSt. Gallen, Switzerland:\nQUOTE: Reported 7000 Lithuanian Jews evacuated from Kaunas\nto East Prussian border for slave labor fearful extermination\nwill follow. We ready meet every obligation effect their\nrescue utilize every appropriate method available save max-\nimum possible number. Contact Intercross urge them send\nrepresentative intervene for group.\nConcerning 1200 endeavoring secure Palestine certificates\nfor them. Urge you do likewise. Necessary also you request\nIntercross and Swiss government to address appeal to Admiral\nHorthy to demand repatriation of this group. It is hoped that\ntheir transportation to Hungary would be accomplished in con-\nditions insuring survival and that on their trip they would be\naccompanied by representative of Intercross or Hungarian Red-\ncross to insure such conditions. Also, that upon return to\nHungary, they would be treated under terms of relaxed regime\npending emigration. Have cabled Wolbe Stockholm to make sim-\nilar request of Swedish government. Vaad Hahatzala Emergency\nCommittee. UNQUOTE\nThe following from WRB for McClelland:\nPlease actively support the above requests to Swiss\nauthorities and Intercross. Developments should be reported.\nTHIS IS WRB CABLE TO BERN NO. 128\nHULL\nRegraded Unclassified\n194\nORIGINAL TEXT OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmerican Legation, Bern\nDATED:\nAugust 17, 1944\nNUMBER: 2836\nSECRET\nPlease transmit the following message to International\nRed Cross at Geneva, Switzerland:\nIt\nQUOTE Jewish telegraphic agency reports from Bern that\naccording reliable letters from Hungary last days of July\ndeportations are continuing at night in spite of Horthy's\npromises. Jewish circles here in great anxiety. Please\nascertain facts. Agudas Israel World Organization, Jacob\nRosenheim, President. UNQUOTE\nTHIS IS WRB CABLE TO BERN NO. 126\nHULL\nRegraded Unclassified\n195\nF0-360\nBern\nThis telegram must be\nparaphrased before being\nDated August 17, 1944\ncommunicated to anyone\nother than a Government\nReceived 11:15 a.m.\nagency. (RESTRICTED)\nSecretary of State\nWashington\n5335, August 17, 1.p.m.\nFOR WRB FROM MCCLELLAND\nReferring to the Department's 2760, August 10, please 600 Legation's\n5092, August 7.\nHARRISON\nWTD\nLMB\nRegraded Unclassified\n196\nNCB-355\nBorn\nThis telegram must be\nparaphrased before being\nDated August 17, 1944\ncommunicated to anyone\nother than a Government\nRec'd 11:20 a.m.\nSecretary of State,\nWashington.\n5336, August 17, 2 p.m.\nFOR WRB FROM MCCESLLAND\nFOR LEON KUBOWITZKI WORLD JEWISH CONGRESS FROM GERHART RIEGNER:\n\"Your cable No. 119. Reports indicating that deported Hun-\ngarian James were sent Germany conformity agreement to provide Hun-\ngarian workers for German war industry are obviously Hungarian propa-\nganda. We have no knowledge any such agreement. I understood that\nHungarian Government in their reply to ICRC asking where deported\npeople had been taken declared they had been sent to Germany for pur-\nposes of \"arbeitseinsats\". Apparently similar communication was made\nto Swiss Government. I understand furthermore that ICRC then asked\nMungarian authorities whereabouts of deported aged people, children,\nwomen, etc., but received no answer\".\nHARRISON\nBB\nRegraded Unclassified\n197\nPARAPHRASE 07 TELEGRAM RECEIVED\nFROM:\nAmerican Legation, Born\nTO:\nSecretary of State, Washington\nDATE:\nAugust 17, 1944\nNUMBER: 5337\nCONFIDENTIAL\nThe following message WRB for McClelland, from\nReae Bertholet for attention of Frank Kingdom Intl\nRescue and Relief Committee.\nIn order to take special action in France and\nHungary I should like to spend $10,000 with Dector\nTchlemoff of OSE. Your approval via telegraph would\nbe appreciated.\nHARRISON\nDCR:EBH 8/18/44\nRegraded Unclassified\n198\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAMLEGATION, BERN\nTO:\nSecretary of State, Washington\nDATED:\nAugust 17, 1944\nNUMBER: 5340\nCONFIDENTIAL\nThis message is from McClelland for WRB.\nReported from Lazagurvio to Leo Wulmann American OSE: I\nan in contact permanently with the qestion of ICRC and an helping\nin Rumania and Hungary. with the participation of former workers of\nOSE We are attempting to constitute Rumania as the central children's\nrelief organisation. Aradtimisuara, our prequr institutions, are\nhelping Hungarian refuges children. Transmistrian children (1400)\nwho were resvacuated and earnarked for Palestine have been put in\nchildren's home temporarily. Me are negotiating with joint since\nsiscable regular subventions are critically required. In regard to\nHungary, we are waiting for detailser the possibilities of resoue\nwork, especially medical relief and children smigration, We are\npreparing, with the participation of joint, considerable bransport of\nrestoratives and medicines. Proceed W 1th your effort regarding the\nJewish population of freed areas of Enstern Europe and transmit all\ndata possible to us. The diverse possibilities of resoue work in\nRumania and Hungary require to be served by funds outside the joint\nallotment although the latter has been very useful to us in our work.\nRegards are sent by Professor Strause of the Resiedstadt.\nDCR:EMS\nHARRISON\n8-19-44\nRegraded Unclassified\n199\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAmerican Legation, Bern\nTO:\nSecretary of State, Washington\nDATE:\nAugust 17, 1944\nNUMBER:\n5343\nSECRET\nMcClelland sends the following for WRB.\nDuring the past few months regular reports have been received\n(the most recent dated 28th of July from Budapest) relative to\nunderground rescue work which Jewish Hechalus organization is carry-\ning on intensively, working out of Bucharest, Bratislava, and Budapest,\nthe latter city in particular. One hundred thousand Swiss francs\nfrom WRB funds in early July (*) Abuted No. 260 from the Department\nand similar amount to this program on August 10, which has yielded\npositive results satisfactorily, although it is an expensive mode of\nrescue costing from one to two thousand Swiss francs to evacuate one\nperson. Have sent this money to Slovakia, Hungary and Rumania. By\ntaking advantage of the willingness of certain Hungarian officials,\nnon-commissioned officers and soldiers in army units along borders of\nRumania and Hungary, for example, to help with flight of imperiled\nJews, the uneasy breathing spell in Hungary since the July 9 suspen-\nsion of deportations has been utilized by Hechaluz to the utmost.\nJuly 20 report from Bucharest places at 1650 the number of persons evacu-\nated to Rumania already, with 210 waiting to cross the border in the\nArad region. On either side of the border at Segesvar and Brasse,\nand Temesvar and Arad relay points have been set up. Assistance has\nbeen given to flight of all categories of endangered Jews, including\nopphaned children and especially to those who have escaped from Ghetti\nprisons and military forced labor battalions in the provinces of\nHungary. Hechaluz uses funds to obtain collaberation of minor Ruman-\nian and Hungarian officials and to pay transportation maintenance,\nadministrative personnel, and false papers \"passeurs\". The Rumanians\nappear to be making no difficulties according to all reports. As\nlong as this program produces results and the fate of Jews in Hungary\nis uncertain, I will continue to support program if you approve.\nAlso promoting flight of smaller groups (particularly these\nwho had been there previously) to Slovakia where the situation is\nless critical.\nHARRISON\n(*) Apparent omission (serviced)\nDCR:EBH\n8/19/44\nRegraded Unclassified\n200\n8/2/19\nCORRECTION OF\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAmerican Legation, Born\n90:\nSecretary of State, Washington\nDATED:\nAugust 17. 1944\nNUMBER:\n5343\nSECRET\nIn lines seven, eight, and nine delete, \"One hundred\nthousand Swiss france from WRB funds in early July (*) ibuted\nNo. 260 from the Department,\" and insert, \"(Department's\ntelegram of July 28, 1944, No. 2603). Early in July contributed\none hundred thousand Swies francs from WRB funds.\" The lines\nshould then read: \"(Department's telegram of July 28, 1944.\nNo. 2603). Early in July contributed one hundred thousand\nSwies france from WRB funds and a similar amount to this\nprogram.. #\nDCR:IDB;XFH\n8/24/44\nRegraded Unclassified\n201\nNOT TO BE RE-TRANSMITTED\nCOPY NO.\n11\nSECRET\nOPTEL No. 268\nInformation received up to 10 a.m., 17th August, 1944.\n1. NAVAL\nHOME WATERS. 15th/16th. 1 M.G.B. sunk and 2 M.G.B's\ndamaged by under-water explosions in assault area.\nBAY OF BISCAY. 15th/16th. M.T.B's probably sank enemy\ntrawler off BELLE ILE.\n2. MILITARY\nN.W. FRANCE. U.S. troops have advanced to DREUX and\nCHARTRES. Further west stiff enemy resistance continues in ARGENTAN\narea, but U.S. troops have occupied DOMFRONT and TINCHEBRAY. U.K.\ntroops have advanced eastward to FLEURS and CONDE. Troops of First\nCanadian Army have captured FALAISE and ground to the B. of it. No\nreport from Southern France.\nRUSSIA. Russians have advanced N. and N.W. from PSKOV\nto within 35 miles of TARTU, Enemy infantry and tank attacks W. of\nSIAULIAI and E. of PRAGA have been repulsed, Russian bridgehead\nN.W. SANDOMIERZ extended.\n3. AIR\nWESTERN FRONT. 16th. Heavy bombers dropped 1,261 tons\non 7 aero-engine and assembly plants in Central GERMANY, also 812\ntons on 4 synthetic oil plants in LEIPZIG district; both with good\nresults. Enemy casualties 6, 4, 6 by bombers, and 32, 1, 4 by es-\ncorting fighters for 23 bombers missing. Enemy aircraft destroyed\nincluded 2 jet-propelled.\n16th/17th. 1176 aircraft despatched (16 missing). Tar-\ngets included STETTIN - 461; KIEL - 346; BERLIN - 23; Minelaying .\n93; Diversionary sweeps - 145; Leaflets - 24.\nSOUTHERN FRANCE. 15th. Fortresses and Liberators\ndropped 739 tons on beaches, bridges, and gun positions for loss of\n5 missing. 892 medium and fighter bombers (6 missing) successfully\nattacked gun positions, strong points and bridges in assault area.\n16th. Fortresses dropped 260 tons on 4 railway bridges\nin Southern France.\n4. HOME SECURITY\nDuring 24 hours ending 6 a.m., 17th, 151 flying bombs\nplotted.\nRegraded Unclassified\n202\nAugust 18, 1944\n(Dictated in presence of Messrs. D. W. Bell and White, and Mrs. Klotz)\nI called on Secretary Hull at 9:45 this morning and told\nhim I wanted to tell him about my trip. First I told him I had\ncalled on General Eisenhower and asked him how he felt about the\nway the Germans should be treated the first few months after we\nentered Germany, and he said that his impression was that they\nshould be treated sternly and that they should be allowed to\nstew in their own juice.\nThen I told Hull that I had a talk with Churchill, and that\nI also asked Churchill how he felt, and I got the impression he\nwanted the Germans treated in a stern manner. I then told him\nthat I had done a lot of probing, and through talking with Winant\nand with the people who assist Winant, and also based on a memorandum\nof July 31st, \"Report on Reparation and Restitution - Property\nRights of Germany,\" under the chairmanship of Mr. Pasvolsky, I\nfound that from all appearances it seemed that the Germans were\ngoing to be treated in a manner so that they could be built up\nover a number of years to pay reparations, and that at the end\nof 10 years they would be prepared to wage a third war.\nI also told Hull that through questions and direct conver-\nsations with Eden at his home and finally in his office, I learned,\nby having Mr. Eden read from the minutes of the Tehran Conference,\nthat during discussions about Poland the President switched the\nconversation to 8. discussion of Germany, and it was then and there\ndecided that Germany should be dismembered in either three or\nfifteen parts, and that a commission should be appointed to study\nthis question. As a result of this the European Advisory Committee\nwas appointed.\nWhen I made this statement, Mr. Hull literally gasped and\nhe said to me, \"Henry, this is the first time I have ever heard\nthis.\" Then he said, \"I have never been permitted to see the\nminutes of the Tehran Conference,\" and he kept repeating that\nover and over again. He said, \"I have asked and I have not been\nallowed to see them, and what you have told me is the first time\nI have ever heard this.\" I told Hull that I would keep it absolutely\namongst ourselves. I don't want it discussed in your shop, Harry.\nI have to protect both the President and Hull.\nThen I said, \"Well, now Pasvolsky has made a study along\nquite contrary lines, and Winant has also made a study with three\npeople along different lines.\" I said that when I was in Winant's\nRegraded Unclassified\n203\n- 2 -\noffice I didn't think he was telling the truth because he first\nsaid he was making a report on reparations for Germany, but\nthat about two weeks ago he began to make a new study which would\ntake into consideration the dismemberment of Germany. I really\ndon't think that anybody has made a study along the lines the\nPresident and Churchill decided on at Tehran.\nWhen I first mentioned the European Advisory Committee,\nHull said, \"That has been & complete failure. The trouble is\nthat Winant is trying to do two big jobs and he can't do them\nboth.' So I had to treat the next thing very carefully. I\nsaid, \"I am not quite sure whether at Tehran Winant knew about\nthe clause for the dismemberment of Germany or whether he didn't.\"\nI said he was a little bit vague about it, but Winant kept saying\nright along that he had no instructions. However, at one stage\nin the game Winant did say that the reason he was hesitating\ntelling me all the facts about this Conference was that Mr. Hull\nhad not seen the minutes at first, but that Hull had subsequently\nsee them. He, Winant, knew about it because he was there in\nTehran. He said that he was there, but it put him in a very\nembarrassing position because he didn't know how much to tell\nback home, and he didn't know exactly how to handle the situation.\nWinant left me with the impression that Hull had seen the minutes\nrecently.\nThe sum and substance of this is that here a meeting takes\nplace sometime last November in Tehran where these three men,\nRoosevelt, Churchill and Stalin, agree to the dismemberment of\nGermany, and all these people go ahead and make studies without\ntaking that into consideration and without explicit instructions.\nIt is like telling an architect to build & house and not telling\nhim where it should be built, how it should be built, or how many\npeople it is to house.\nHull was quite upset, SO I said to him, \"You know, Cordell,\nHarry Hopkins wanted to see me, but I haven't seen him and I am\nnot going to until I have seen you and the President. I cabled\nfrom Europe that I wanted to see you. I am going to see the\nPresident tomorrow morning and after that I will see Harry.\"\nI said, \"I appreciate the fact that this isn't my responsibility,\nbut I am doing this as an American citizen, and I am going to\ncontinue to do so, and I am going to stick my nose into it until\nI know it is all right. I am more interested in my responsibility\nas a citizen than I am in holding my job, and I am going to continue\nalong those lines, and if I find out anything I will come over and\ntell you about it.\" He said that was right.\nRegraded Unclassified\n204\n- 3 -\nI said to Hull, \"Where to you stand on this?\" and he said,\n\"You know the reason I got along 80 well with the Russians was\nbecause when I was in Moscow I told the Russians that I would hold a\nsecret trial before which I would bring Hitler and his gang\nand Tojo and his gang, and I would shoot them all, and then I\nwould let the world know about it B. couple of days later.\"\nHe said, \"That's my position.\" I asked him what he was going\nto do about the State of Germany, and he said, \"I don't have any\nchance to do anything. I am not told what is going on. That's\non a higher level. I am told that that is a military affair.\nI have consultations with the War Department every day on the\nimmediate objectives, but when they talk about the State of\nGermany I am not not even consulted.\" He said, \"Here I am waging\na battle for the President and I am not told, and this is the\nfirst time I have heard this.\"\nWell, I don't know what Hull is going to do, but I am going\nto continue along these lines.\nThen I went on and told him about the plans which the Army\nis making where we would go into the south of Germany and England\nin the north of Germany. That is contrary to the way the President\nwanted it, but the only way they could have carried out the\nPresident's wishes would have been to have the two Armies cross\neach other, so the Army decided to do it the other way.\nThen he brought up the Argentine, and I said, \"What is the\nsituation in regard to the Argentine?\" and he went into his usual\ntirade that everybody is with him on that except Sumner Welles,\nand Drew Pearson. Hull said that Welles is going around telling\neverybody that he (Welles) will be in the saddle right after\nelection and not to pay any attention to anything Hull does.\nHull said Welles is for the appeasement of Argentina. Hull told\nme about how they had wasted thousands of dollars advertising\nWelles' book, and how Welles had only mentioned Hull once in it.\nHull said that all the President would have to do is say one word\nand it would stop, and, of course, he is right. It is the same\nthing as I had when I was having trouble with Jimmy Byrnes. If\nthe President had said just one word it would have stopped but\nhe wouldn't do it.\nRegraded Unclassified\n205\n- 4 -\nI asked him how England was acting on the Argentine, and\nhe said he had gotten them to withdraw their Ambassador.\nHull seemed to feel very, very badly about the Welles'\nbusiness.\nI told Hull all about my conversation with Sir John\nAnderson on the financial problems (I have written a complete\nmemo on this conversation and it is on file.)\nThen I told Hull what we had been able to do over there in\nregard to the Hungarian situation, and that DuBois had been ,\nmost helpful. I said I had discussed it with Churchill and Eden,\nand I said that they were quite sensitive about the reaction on\nthe Arabs. I told Hull that Churchill had opened up the question\nby saying he had intended sending in a Jewish Army with a Jewish\nflag, and I had told Churchill I was opposed to that because it\nwould give Hitler a chance to say that the Jews owed allegiance\nto a Jewish flag. Churchill said that Bernie Baruchfelt the same\nway about it. Hull said he thought that that matter had been\nsettled months ago. I told him that Churchill was opposed to\nraising the quota to bring the Hungarian Jews out because he said\nhe had promised the Arabs that while the war was going on they\nwould let the quota stand.\nTo sum up, if Eden hadn't actually read from the minutes\nof the Tehran Conference and Hull hadn't told me face to face\nthat he hadn't seen them, I wouldn't believe it.\nI also told Hull that Russia had kept completely aloof\nfrom the European Advisory Committee, and I told him the reason\nthey were keeping out of it, in my opinion, was because they\nrealized how the American and English delegates were proceeding\non this matter, and they wanted no part of it.\nFrom my talk with Hull, I am sure if Hull got a directive\non the dismemberment of Germany he would go to town. My trip\nto Europe was many, many times worth while just for what I learned\nand what I told Hull, and we will see what happens when I see the\nPresident. Hull said he gets exhausted fighting the different\npeople around town, meaning people like Welles, and the President\ncould stop it in 8. minute if he wanted to do it.\nRegraded Unclassified\n8/18/44-\n206\nREMINDER -\nTreasury representative at Dumbarton\nConference.\nI made this\nrequest of Hull\nand he said O.K\nhe would at\nme Anour\n207\nAugust 18, 1944\n11:00 a.m.\nOperator:\nGo ahead.\nHMJr:\nHello.\nEugene\nMeyer:\nGood Morning, Henry.\nHMJr:\nHello, Eugene.\nM:\nHow are you? Welcome home!\nHMJr:\nThank you so much.\nM:\nDid you have a good trip?\nHMJr:\nWonderful trip.\nM:\nMust have been wonderful.\nHMJr:\nIt was a wonderful trip.\nM:\nUh -- I wanted to know if I, and one or two\nof my staff\nHMJr:\nYes.\nM:\ncould have a talk with you and White.\nHMJr:\nYes.\nM:\nI'd be very pleased to furnish lunch. I have no\nair-conditioning this year on account of circum-\nstances I do not control, but you and White would\nbe welcome at lunch Tuesday or Thursday of next\nweek if you could do it, and I would have one or\ntwo people\nHMJr:\nDo you want to talk Bretton Woods? Is that it?\nM:\nYeah, and anything else you want to talk about\nin addition.\nHMJr:\nWell, may I let you know a little -- may I accept\ntentatively for Thursday?\nM:\nMake it tentative for Thursday.\nHMJr:\nYes.\nRegraded Unclassified\n208\n- 2 -\nM:\nAnd will you would you invite Mr. White for me?\nI haven't the pleasure of knowing the gentleman.\nHMJr:\nI will invite Mr. White, and he is accepting\nnow.\nM:\nHow's that?\nHMJr:\nI will accept for him.\nM:\nOkay. One o'clock.\nHMJr:\nOne o'clock.\nM:\nAt the Post.\nHMJr:\nI'll look forward to going there.\nM:\nWell, that's swell. Thanks a lot.\nHMJr:\nThank you.\nRegraded Unclassified\n209\nAugust 18, 1944\n12:23 p.m.\nTheodore\nGranik:\nHello.\nHMJr:\nMr. Granik.\nG:\nYes, Mr. Secretary.\nHMJr:\nHow are you?\nG:\nVery well, thank you.\nHMJr:\nMr. Granik, half a dozen of us are sitting\naround here talking about this program on\nTuesday.\nG:\nYes, sir.\nHMJr:\nAnd I only found out about it when I came home --\nthat there's a misunderstanding.\nG:\nYes, sir.\nHMJr:\nAnd the thing that's bothering me is that\nthere's too many loose ends, and I wondered\nwhen you would be available for discussion\nso that we can tie this thing up.\nG:\nWell, I had -- I was talking to Mr. Luxford\nabout a meeting on Monday at your convenience,\nMr. Secretary. I didn't know that you were\ncoming back sooner.\nHMJr:\nWell, I\n....\nG:\nI'll be back Sunday night in Washington. See\nyou any time at your convenience.\nHMJr:\nWell, the unfortunate thing is I am here all\nday tomorrow, but I'll not be here Monday.\nG:\nOh, I see.\nHMJr:\nSee?\nG:\nWell, I could come back\n....\nHMJr:\nWhat's that?\nG:\nI'd better come back to Washington tonight.\nRegraded Unclassified\n210\n- 2 -\nHMJr:\nWell, I'll tell you. If you could -- if you\ncould -- I don't know just what your plans\nare, but if you could be here for a couple\nof hours tomorrow morning We could settle\nthis thing.\nG:\nFine.\nHMJr:\nAnd then, whatever your week-end plans were\nyou could carry on.\nG:\nWell\nHMJr:\nCould you do that?\nG:\nI'll come back -- I'll come back tonight.\nHMJr:\nWell, I think any of these things, if we are\ngoing to do them, it's only worthwhile doing\nthem well.\nG:\nThat is right. You are correct, sir.\nHMJr:\nWhat?\nG:\nYou are absolutely right. I want to do it\nright.\nHMJr:\nAnd, of course, if I'd had a chance to be\nconsulted, I would have asked to postpone\nthis thing a little bit, but that's water\nover the dam. I take it you've announced the\nprogram.\nG:\nOh, yes, quite heavily.\nHMJr:\nWell, then we'll cooperate because I appreciate\nwhat you are doing, and could I suggest that\nyou be at my office at nine-thirty tomorrow\nmorning?\nG:\nI'll be at your office at nine-thirty tomorrow\nmorning.\nHMJr:\nAnd then we will go into this thing, and decide\nhow we can make it a first class program.\nG:\nI'll be very happy to. I'll be at your office\nat the Treasury at nine-thirty tomorrow morning.\nRegraded Unclassified\n211\n- 3 -\nHMJr:\nThank you so much.\nG:\nGoodbye, Mr. Secretary.\nRegraded Unclassified\n212\nAugust 18, 1944\n12:27 p.m.\nJohn\nMcCloy:\nYou seem to have jarred 'em loose over there.\nHMJr:\nDo you think 80?\nM:\nGee whiz! You certainly stirred 'em up.\nHMJr:\nWell, I don't know what you mean, but\n....\nM:\nI mean you must have -- you -- I understand\nyou are responsible for this Patton drive.\nHMJr:\nNow, listen, Jack\n....\nM:\nWhat?\nHMJr:\n....\ndon't kid the old man.\nM:\nWell, it occurred just about the time you\nwere there.\nHMJr:\nWell, I'd love to take full credit for it\nM:\nYeah.\nHMJr:\n....\nbut I'm afraid I can't.\nM:\nHow -- did you enjoy your trip?\nHMJr:\nVery much. And any time you've got time, I'd\nbe delighted to see you.\nM:\nI -- I'm going up in a few minutes to see\nStimson, who 1s up in the Adirondacks.\nHMJr:\nOh.\nM:\nI -- I'll be back Monday, and if we could have\nlunch some time next week, I'd be tickled to\ndeath to hear what you've got to say.\nHMJr:\nWell, I'll -- I'll ....\nM:\nWell, you -- you -- I won't hold you down to it,\nbut just bear it in mind\nHMJr:\nI will, and\n....\nRegraded Unclassified\n213\n- 2 -\nM:\n....\nand if you get some free time, give me a\nbuzz, and I'll come over.\nHMJr:\nIf not for lunch, maybe We could have supper\ntogether.\nM:\nRight. I'd love to.\nHMJr:\nHow would that be?\nM:\nFine. Better yet.\nHMJr:\nWell, I'll -- why not say Wednesday night for\nsupper?\nM:\nHold the wire just a second.\n(Pause)\nM:\nI got -- Wednesday is the one night I've got\ntied up.\nHMJr:\nWell, I have nothing Thursday.\nM:\nTuesday or Thursday, either one or the other.\nHMJr:\nWell, Tuesday we are doing a broadcast\nM:\nYeah.\nHMJr:\n....\nSo I think I'd better make it -- 1s your\nMrs. around?\nM:\nShe's away.\nHMJr:\nWell, then, just -- Thursday night.\nM:\nRight. Fine.\nHMJr:\nThank you.\nM:\nThursday is all right.\nHMJr:\nThank you.\nM:\nYeah. Okay. Uh\n....\nHMJr:\nYes.\nRegraded Unclassified\n214\n- 3 -\nM:\nWhy, during the course of these negotiations --\nis Dan Bell with you?\nHMJr:\nYes.\nM:\nYou might just hold him a minute because this is\nsomething he's interested in.\nHMJr:\nYes.\nM:\nWe have finished these negotiations as he has\nprobably told you.\nHMJr:\nYes.\nM:\nUh -- and they are now through -- they're going\nthrough the Combined Chiefs-of-Staff. We\ntightened them up. Uh -- I think we came out\nall right, all the way along the line. I think\nhe'll tell you so. But there was one thing\n....\nHMJr:\nYeah.\nM:\nand that was the so-called Lend-Lease\nagreement -- the agreement to agree -- the\nagreement to negotiate for a future Lend-Lease\nagreement.\nHMJr:\nYeah.\nM:\nWe said in the Army that we didn't think that\nthat should be signed by Eisenhower -- that was\na Lend-Lease -- State Department affair.\nHMJr:\nYeah.\nM:\nThey finally agreed to that, and they are about\nto close it. Now, in the course of our getting\nan agreement from the French\nHMJr:\nYes.\nM:\nto pay in cash for the civilian supplies\nwhich the Army had furnished, or would furnish\nunder \"Plan A\", we've pointed out that they\nwere already in arrears\n....\nHMJr:\nYeah.\nRegraded Unclassified\n215\n- 4 -\nM:\n....\nin North Africa\n....\nHMJr:\nYeah.\nM:\n....\nas you know.\nHMJr:\nI know, yes.\nM:\nAnd we said we wanted -- we wanted this gold\nfrom them.\nHMJr:\nYeah.\nM:\nWell, we've got the gold.\nHMJr:\nYeah.\nM:\nUh -- then they agreed to do that, but the\nquestion of the arrears of the North Africa\npayment ....\nHMJr:\nYeah.\nM:\n....\nalthough it didn't affect my negotiations,\nI used it as an argument for our needing gold\nbecause they had \"welshed\" somewhat on that.\nHMJr:\nYeah.\nM:\nI don't know whether it was arranged that\nbefore the State Department signed the Lend-\nLease agreement ....\nHMJr:\nYeah.\nM:\n....\nthere should be either a pay-up on the\nNorth African supplies or another letter saying\nthat they would pay for them. I don't -- it's up --\nit's between -- it's between Lend-Lease and -- and\nthe Treasury.\nHMJr:\nYeah.\nM:\nIt isn't something in which the War Department,\nin these -- course of these negotiations undertook\nto work out, but the thing came up. And Ball, from\nthe F.E.A., who was sitting around the table, several\ntimes said something about getting a letter\nRegraded Unclassified\n216\n- 5 -\nHMJr:\nYeah.\nM:\n....\nfrom the French. Now, my specific question\nis, must the State Department be instructed --\nor should the State Department be instructed not\nto sign this agreement to -- so-called -- to agree.\nHMJr:\nYes.\nM:\non a future lend-lease agreement until they get\nsuch a letter, or can they go right ahead and sign\nit with all the rest of the agreements? If they\ndon't sign it, there may be some difficulty but I\ndon't know whether that's a Treasury-F. E.A. point\nand if it is, some -- the relationship with some --\nsome instruction to the State Department should go\nout.\nHMJr:\nWill you hold the wire?\nM:\nI'll hold the wire a second. See what Dan's\nfeeling is on that.\nHMJr:\nAll right. Just a moment, please.\n(Pause)\nHMJr:\nBell's going to go out and speak to Glasser and\nhe will call you back in a couple of minutes.\nM:\nFine. Okay.\nHMJr:\nThank you.\nM:\nSee you next week.\nHMJr:\nRight.\nM:\nAll right, sir.\nRegraded Unclassified\n217\nAugust 18, 1944\n4:50 p.m.\nDonald\nNelson:\nFine, thank you.\nHMJr:\nGood.\nN:\nAre you going to be in tomorrow?\nHMJr:\nYes.\nN:\nWell, Pat Hurley and I -- General Hurley, you\nknow.\nHMJr:\nYes.\nN:\nwould like to come over and see you. The\nPresident has asked us to go to China on a\nspecial mission for him.\nHMJr:\nYeah.\nN:\nAnd we wanted to discuss some of the phases of\nit with you, if we might, before we went.\nHMJr:\nHow about three o'clock?\nN:\nWell, if you could make it in the morning --\nit's all right with me.\nHMJr:\nNo, because\n....\nN:\nThree o'clock's fine with me. Pat wants to go\ndown to -- has to go down to Camp Meade in the\nafternoon.\nHMJr:\nI see. Well, the morning is all gone.\nN:\nIt 1s?\nHMJr:\nYeah.\nN:\nWell, I'll see what -- I'll see what I can do.\nHMJr:\nI'm sorry, but I'm completely tied up in the\nmorning.\nN:\nYou are?\nHMJr:\nYeah.\nRegraded Unclassified\n218\n- 2 -\nN:\nWell, it's perfectly -- three o'clock is all\nright with me.\nHMJr:\nWell, let's put it three o'clock. If that\ndoesn't work, you let me know.\nN:\nWell, I can come over anyhow at three if he\ncan't.\nHMJr:\nWell, I'd love to do it but I've got appoint-\nments I can't change.\nN:\nAll right. Well, I'll call Pat and see -- see\nwhen he's going down to Camp Meade. If he can't\ngo with me, why, I can come to see you anyhow\nand then he might see you later.\nHMJr:\nOkay.\nN:\nAll right.\nHMJr:\nThank you.\nRegraded Unclassified\n219\nTREASURY DEPARTMENT\nINTER OFFICE COMMUNICATION\nDate\nAugust 18, 1944\nTO\nSecretary Mor genthau\nFROM Mr. Luxford\nFor your information\nThis morning 1 expressed the view that the public and\nCongress are ignorant on the ubject of Bretton Woods and that\nit was important that we move forward as rapidly as possible\nin educating them about the Fund and Bank proposals. I mentioned\nthat one sympathetic Congressman (Voorhis) had told me that\n\"Congress had no opinion on subject because Congress did not\nunderstand it.\nMy attention has just been called to the attached report\nprepared in OWI entitled \"THE PUBLIC IGNORES BRETTON WOODS.\nThis report is based on responses received by wire between\nJuly 10-15, 1944 from 40 editors and labor editors in 33\nlocalities, in 23 states. These correspondents serve as regular\nvolunteer public opinion reporters for OWI and are requested\n\"to tell, not their individual views, but the opinions prevailing\namong the people with whom they have contact.\"\nThe following is quoted from the report's summary:\n\"There is virtually no public opinion about the\nBretton woods conference, according to our corres-\npondents. There is no general discussion of it\nbecause there is no interest; and there is no interest\nbecause there is no comprehension of the issues\ninvolved and the plans proposed, or of their importance.\nBankers and business circles are believed to be more\ninformed than the general public, yet even these are\noften 'surprisingly ignorant' of the subject.\n\"Much of the ignorance is blamed on inadequate\npublicity, which is criticized both for quantity and\nquality. There should have been more, say these\ncorrespondents; and it should have been more simple,\nmore direct, more educational, more compelling.\"\nRegraded Unclassified\n220\n- 2 -\nIt should, of course, be noted that the editors\nexpressed their opinions between July 10 and July 15 and\nthat probably a more recent survey would disclose more\nunderstanding on the part of the public. However, I do believe\nthat we have 8. long way to go if we actually do intend to\neducate the public on these issues and that it will require\na great deal of time and patience on our part.\nNeither am I impressed about giving the \"opposition\"\nmore time to fight us. We are at a great advantage right now\nbecause the \"opposition\" is disorganized and the political\nleaders do not know which way to turn. We can capitalize on\nthis situation by seizing this opportunity to educate the\npublic while the opposition is disorganized.\nQJR\nAttach.\nRegraded Unclassified\n221\nDivision of Research\nBureau of Special Services\nMEMORANDUM\nAugust 16, 1944\nTo:\nMr. James Abramson, War Refugee Board\nEVS\nFrom:\nEverett V. Stonequist, Chief\nSubject:\nEnclosure\nMr. Herbert Little has asked us to forward to you\nthe enclosed report on public opinion about the monetary con-\nference at Bretton Woods. You will note that this report\nrepresents opinions during the early stages of the conference,\nand that the respondents have reported not their own views but\nthe attitudes prevalent among the people with whom they are in\ncontact.\nA follow-up study is now being made to discover\nwhether public interest and understanding increased subsequent\nto the period reported here.\nEnclosure\nRESTRICTED\n222-\nTHE PUBLIC IGNORES BRETTON WOODS\nDivision of Research\nReport No. C 36\nBureau of Special Services\nOFFICE OF WAR INFORMATION\nJuly 28, 1944\nRegraded Unclassified\nThis report is based on responses received by wire. (idth 8.\nfew supplementary letters), July 10-15, 1944, from 40 edi-\ntors and labor editors in 33 localities, in 23 states,\n(States and localities listed in Appendix B).\nThese correspondents serve as regular volunteer public\nopinion reporters for the Correspondence Panels Section.\nThey have been asked to tell, not their individual views,\nbut the opinions prevailing among the people with whom they\nhave contact. A distinction is made between \"editors\" and\n\"labor editors,\" since their reports very often show con-\nsistent differences.\nExcerpts are used merely to illustrate or elaborate some\nof the opinions summarized in the text. They do not nec-\nessarily indicate the frequency with which such opihions\nare expressed.\nThe wires were in response to the following inquiry, sent\nout by telegraph on July 8, 1944.\nRequest just received for prompt information\non reactions to Bretton Woods monetary con-\nference. Please give what you can on what is\nbeing said about erence and about plans\nbeing outlined incre for international handling\nof currency questions and a world bank,\nHow much is known about the plans proposed,\nhow important are they considered, what hopes\nor fears are expressed concerning their success\nor failure?\nWhat is said about the amount to be contri-\nbuted by this country in relation to the share\nproposed for others?\nDo people think that the United States stands to\nbenefit by such contributions to monetary and\nexchange stability and long term economic\ndevelopment or that only those countries will\nbenefit which are financially weaker or\neconomically less developed?\nPlease wire collect not exceeding three hundred\nwords by Monday morning if possible.\nThis report, in preliminary form, was issued on July 11, while\nthe monetary conference was still in progress. The present\nversion includes later responses and supplementary footnotes.\ni\n223\nSUMMARY\nThere is virtually no public opinion about the Bretton Woods\nconference, according to our correspondents. There is no\ngeneral discussion of it because there is no interest; and\nthere is no interest because there is no comprehension of\nthe issues involved and the plans proposed, or of their im-\nportance. Bankers and business circles are believed to be\nmore informed than the general public, yet even these are\noften \"surprisingly ignorant\" of the subject.\nMuch of the ignorance is blamed on inadequate publicity,\nwhich is criticized both for quantity and for quality.\nThore should have boon more, say these correspondents; and\nit should have been more simplo, more direct, moro educa-\ntional, moro compelling.\nOnly a small minority know enough to have any viowpoint\nat all, These divide betwoen approval of the ends and\ncriticism of tho means. On the one hand thore is consider-\nablo recognition of the nood for international collaboration\nin the interest of full employment, economic stability, and\nlasting peace. On the other hand there are fears lest the\nconference come to nothing, because the members cannot \"get\ntogether,\" or because its aims are too \"ambitious;\" there\nis concern lest the proposed arrangements will load us into\nhazardous or unfair obligations. The editors report more\nexplicit criticism of the actual proposals than do the\nlabor oditors, whilo the latter describe moro general anxioty\nabout the success or failure of the conforence.\nAmong the minority for whom opinions are reported, belief\nthat tho United States stands to gain is far less strong\nthan the conviction that wo shall gain nothing, or at\nleast not as much as the others, by contributing to an in-\nternational fund and a world bank. Corollary to this con-\nviction is a clearly dofinod approhension that the United\nStatos will be a \"sucker\" nation, playing \"Santa Claus\"\nto the world and \"outsmarted\" by others, especially by\nEngland.\n11\nRegraded Unclassified\nTHE PUBLIC IGNORES BRETTON WOODS\nMINIMUM OF\nBy and large, our corrospondonts find no\nINTEREST\npublic opinion about the Brotton Woods\nconference, They report, in fact, that a\ngood many people--even businessmon-do not know it is being\nheld, and that those who do evince a minimum of interest.\nGeneral discussion of the subject is said to be practically\nnon-existont, A number of respondents are distrossed that\nso momentous an undertaking should romain remoto, mystorious,\nand almost unnoticed.\n\"Know of nothing creating so little interest as\nmonotary conforence.\" E*\n\"Great majority do not even know conference is\nin sossion,\" LE\n\"Not one in a thousand even knows there is a\nBrotton Woods Conference. Most of them think\nit has something to do with fuel question.\nSorry but that's facts.\" E\n\"Inquiry among my acquaintances has failed to\ndisclose one who has road about the conference\nor has the slightest idea in the world of what\nit is about. That's a tragedy when so much is\nat stake.\" LE\n\"To dato, Bretton Woods and its swank environ-\nment has an aura of mystery, it has sinister\nimplications with a dimo novel drop curtain,\nOne of the most important conferences in many\nyears, whose results may have tremendous in-\nfluonce on the shapo of things to como, the\noverwhelming majority of citizens are not the\nleast interested in it.\" E\nMINIMUM OF\nMost of thoso who are aware that an in-\nKNOWLEDGE\nternational monotary conference is being\nhold are said to have no conception of\nthe issuos involved and tho plans proposed--or of thoir\nimportance. Except in \"banking and financial circles\"\n* In identifying excerpts from respondents' reports, \"E\"\nstands for editor, and \"LE\" for labor editor.\nUnclassified\n- 2 -\n224\nthere is no discussion because thore is no interest, and\nno interest because thore is no knowledge. The problems\nbeing dobated aro considered technical, csoteric, abstruse--\nboyond tho scope of tho average layman who dismisses them\nas \"somothing for tho experts to bother about.\" And many\nwho hold dogrees--oven degrees in law and economics--\nappear to rank as laymon in the lore of currencies.\nMoreover, while bankers and financiers are said to be some-\nwhat moro intorosted than the general public, and while\nmany assume from tho outsido that \"bankers may know what is\ninvolved,\" a few who have made direct inquiries find that\noven bankors and brokers show \"a startling lack of know-\nledge\" about the actual problems and proposals discussed\nat Brotton Woods. A confidential report of a meeting of\na state banking association describes the members as sur-\nprisingly ignorant of the agreement reached. \"They recog-\nnize importence of stabilization after the war but very\nfoggy as to the details, confusing the 'gadgets' with the\nover-all policy of international planning affecting ex-\nports and imports.\"\nA number of correspondents point out that most people\nhave no notion of the bearing monetary factors may have\non national oconomic conditions and on their own personal\nfatos and fortunos. This ignorance is seen as a two-fold\nmenace. In the first place it provents full rocognition\nof the importance of the conference and the need for ful-\nfilling its objectivos. In addition, it leaves the public\nvulncrable to specious arguments about the gold standard\nand tho fonsibility of \"economic isolationism\" as well as\nto \"bad propaganda by onemy nations.\" The need to under-\nstand the significance of the agreements reached at the\nconforence is viowed as the more urgont sinco the issues\n\"will probably be injected into the coming campaign\" and\nbocomo \"part of a political controversy.\"\n\"I fear Bretton Woods conference too abstruse\nand involved for average citizen to have any\ncomment one way or the other.\" LE\n\"No concept importance of plans nor what about.\"\nLE\n\"General public seoms virtually ignorant and\ndisintorosted toward monetary conference,\" E\n\"Overwhelmingly majority reaction neutral be-\ncause of ignorance. Typical reply: 'It's\ntoo complicated.' E\nRegraded Unclassified\n- 3 -\n\"Have net no one who understands issue: Can\nfind no one interested enough to discuss same\nConference and thomo of same about es remote\nfrom the general public as price of eggs in\nKamchatka.\" LE\n\"I doubt whether one person in a hundred thousand\nhas even the haziest idea of the effect of mone-\ntary changes on his own privato affairs.\" E\n\"Fow understand relation of Monutory Fector to\nclearance of international trensuction or\nlatter's relations to national enjury. Have\nonly vague nótions about currency value in terms\nof international exchange. Therefore great\nmajority unable to follow proceedings intel-\nligently. Vulnerable to arguments of possi-\nbility of more simple and realistic solution\nto over-all external stabilization.\" E\nINADEQUATE\nA largo portion of the blame for the al-\nPUBLICITY\nmost universal ignorance is laid on de-\nfoctive publicity and the lack of an edu-\ncational campaign. Responsibility for the informational\nshortcomings is divided betwoen the media and the govern-\nmont. There is somo foeling that \"pro-publicity\" should\nhave been issued to prepare the public for following the\nconference with intelligence and interest--storics in the\npress and on the air, a simple pamphlet for bankers and\nbusiness groups. Criticisms of current publicity divide\nbotween complaints about bad press play and scant radio\nnotice on the one hand, and complaints that the stories\nreleased were \"tedious\" and difficult, dwolling on tech-\nnicalities rather than on the basic implications for the\naverage citizon. One editor adds that points of disagroe-\nment were stressed, rathor than the nood for reaching\nagreement.\nSimple and understandable accounts are domanded, and some\n\"humanizing\" of the proceedings by acquainting tho public\nwith the individuals taking part in them. A labor editor\nasks plaintively if any reprosontativos of the labor press\nwere invited to attend, pointing out that some of them\nwould be particularly well qualified to do the necessary\ninformation job. One or two others mention the lack of\nlabor ropresentation more as a slight to labor than as\na lost informational opportunity.\nRegraded Unclassified\n- 4 -\n225\nThe strong emphasis on the informational aspect is the more\nstriking in those brief, telegraphic replies, since no\nquestion was asked about publicity; although in large\nmeasure this omphasis may be attributed to the fact that\nthe respondents are all nowspaper poople.\n\"Wholo business is so poorly publicized that\nthoso queried frankly stated did not know the\ncompleto picture nor what to form opinion on,\" LE\n\"Rank and file has not picked up two vossions as\na matter of common discussion primadly because\nthe issues have not been cloarl ryldned.\" LE\n\" ' (A local bankor) blamos government partly for\nthis lack of knowledge (among bankers). Says\nsome U.S. agency should have gotten out briof\npamphlet, months ago, distributed to every banker\nin U.S. outlining simply and cloarly the agroe-\nment reached by experts and the agonda at\nBrotton Woods.\" E\n\"The thing has never been prosented to them\nsimply and sympathetically by any commanding\npersonality of government. It ought to bo.\" E\n\"Poople are waiting to have monetary conforence\nissues explained in simple understandable terms,\" E\n\"Suggost that nows about Brotton Woods con-\nferenco deal with basic problems of increased\nforeign trade, roconstruction problems, indus-\ntrialization of undeveloped countries and such\ngonoral principles as thoy will affect American\nindustry and full employment in the postwar\nporiod and the necessity for a stable monetary\nsystem to make thoso things possible. Whon tho\nreports are narrowed down to monotary problems\nalono there is nothing for tho average person\nto discuss. So for the newspapers have made\nit a conference of oxperts and complicated\nmoney quostions.\"\n\"Nows stories have featured apparent points of\ndisagreement rather than tho necossity of get-\nting togother on a workable solution of tho\nproblems.\" LE-\nRegraded Unclassified\n- 5 -\n\"The labor papers would work with the govern-\nmont a hundred percent, provided they were\ndrawn into the picture carly enough. But\nthey don t get asked except when it is purely\nlabor.\" LE\nGENERAL\nThe only opinions reported come from a\nATTITUDES\nvery small minority--a fow say chiefly\nbankors, businessmen, or professional\ngroups. Where opinions are held they are said to be\nmixod. Occasionally they are described as \"following\nparty lincs.\" The fow who are equipped to think about\nthe subject apparontly approciate the importance of the\nconforence. Over-all reactions among these few seem to\nsplit rathor evenly between the favorable and the un-\nfavorable, with the labor editors leaning slightly toward\nthe former and the oditors toward the latter. Thore is a\nhint, however, that the \"antagonistic attitudo of bankors\"\n--whose views would bo represented by the editors rather\nthan the labor oditors--is \"slowly being dissolved.\"\nIt is chiefly the labor oditors who roport fear that the\ndologatos will fail to \"got togother\" and a \"vague hope\"\nthat tho conference will succeed. Yet the editors are\nmore articul to in strossing the neod for international\ncollaboration in the interest of maintaining full employ-\nmont, averting oconomic disaster, and promoting a stable\npeace. Despite the \"appalling ignorance\" of the public\nabout the conference and its objectives, there seems to\nbe a widespread recognition of the growing need for in-\nternational collaboration in general, and a readinoss to\nunderstand that this collaboration must be economic as\nwell as political. The feeling is, however, that this\nreadiness must be sparked by a comprehension which at\npresent is lacking.*\n\"Professional groups lawyers doctors bankers\netc. absolutely approve--realize importance of\nthis matter and favor adoption of American plan\ninstead of British.\" LE\n\"Fear is expressed that the countries will not\nunito,\" LE\n*For trends in recent pùblic opinion stúdies regarding in-\ntornational collaboration, see Appendix A,\nRegraded Unclassified\n6 -\n226\n\"I believe our people are definitoly better in-\nformed about the need for international coopera-\ntion in whatover fiold is nocossary then they\nwore after the first World War.\" E\n\"Consonsus is that some typo of fund is more\nessential than over before and that somo pro-\nposal of the typo outlined for a world bank and\ninternational handling of currency must be adop-\ntod if cconomic disastor is to bo averted. Bo-\nliof is that international monotary fund will\ndefinitoly promote exchange stability among the\nvarious national currencios and facilitato multi-\nlatoral payments, thoreby encouraging expansion\nof international trado and resulting in growth\nof employment and roal incomes in member\ncountries. E\n\"Thoro is a fooling among thoughtful citizons\nthat this conference whatover it is all about\nis tronendously inportant and that collaboration\nwith other nations in trying to solve world\noconomic problems must bo carried on permanontly.\nFooling is gonoral that prosent war is result of\nfailuro of nations especially of the United\nStatos to work together on world oconomic problems\nincluding monotary.\" E\n\"Even if participation in international oconomic\ncooporation should be more costly to U. S. in\ntorms of dollars than economic isolation would\nbe--and this is unlikely to be truo--tho annual\ncost would certainly not exceed the woekly cost\nof waging war.\" E\nPRO'S AND\nIt is in keeping with the general dearth\nCONS\nof knowledge that remarkably little is\nsaid of the actual proposals. It is\nnoticoable too that, whereas approval tonds to be attached\nto the gonoral aims and objectives of the conference, dis-\napproval and misgiving are somewhat more specific and more\nclosely rolated to the proposed plans.* Such disapproval\n* Editorial opinion precoding and during the opening days of\nthe conforence also showed opposition contering on specific\nfeatures of the plan rather than on general objectives, with\nwhich the majority expressed sympathy, During the period\nJuly 3-17, about equal minorities definitely favored and\nopposed the proposals while n majority viewed them with cool-\nnoss or suspicion. In the poriod July 12-20, opposition was\nvoiced by & cloar majority, 15 out of 28. See Analysis of\nEditorial Opinion, No.'s 57, 58 and 59, July 14, July 21, and\nJuly 28, 1944; Division of Research, Buroau of Special Services,\nOWI.\nRegraded Unclassified\n- 7 -\nor approhension is reported more by editors than by labor\noditors. It may be significant in this connoction that\nbusiness groups are folt to be more versed than the general\npublic in what the plans roally are, and that editors are\nmoro conversant than labor editors with the opinions of\nbusiness groups.\nSpecific approval of the sizo of this country's contribu-\ntion comos from several correspondents who say it is con-\nsidered fair onough, two of thom ascribing assent to a\nfoeling of moral obligation. The only other commendation\nof specific features (as opposed to general objectivos)\nis a statement by a labor oditor that the Amorican plan\nis favored rather than the British.\nOn the whole the fears are more vocal as well as nore\nexplicit than tho hopos expressed for the conferonce,\nAmong adverse commonts, ono oditor reports belief that\ntho amount suggested for the international stabilization\nfund is too largo. Several say that the quota system is\nfolt to place an unfair burden on the Unitod States, but\nthere are fower expressions of objection than of acquios-\ncence in the sizo of our quota. Morcover, thore is a hint\nthat Russia's dosire to incroaso her quote cast a more\nfavorable light on the size of ours--sorving as a ro-\nmindor that the power of a nomber nation would be in pro-\nportion to the size of its contribution. Other misgivings\nvoiced occasionally are: that the suggosted arrangoments\nwill \"encourago inprudent berrowing by foroign countries\nat the exponse of the Unitod States;\" that this country\nnight be lot in for \"hazardous commitmonts;\" that the\nplans \"might undorwine the U.S. monetary system;\" that\nthey are over-ambitious for the present; that they are\ndangorous because the oconomics of somo countries are\nunsound.\nMost of those commonts como from oditors. One of the\nfow direct criticisms of the proposals reported by a\nlabor oditor takes tho form of suspicion that the plans\nare being shaped by financiers who will reinstate the\ngold standard as a means to implomonting monopolies and\nRegraded Unclassified\n227\n- 8 -\ncartels. A number of oditors, on the other hand, in-\ndicate that business and banking interests hope for the\nreturn of the gold standard.*\n\"I don't believe there is any serious objection\nto tho amount to be contributed by this country;\ntho fooling is that the war has touched us more\nlightly than other nations, and that our tromen-\ndous resources imposo án obligation to carry a\ngreater sharo of tho burden than loss fortunate\nnations.\" LE\n\"(Thc bankers') distrust of U. S. contribution\nto general stabilization fund was partly overcome\nby news that Russia wanted to incroase its con-\ntribution, giving thom idea that greater tho\ncontribution the greater the influence.\" E\n\"Provailing viow is that conference is pro-\nmature and will como to nothing largely because\ntoo much is boing attemptod.\" E\n\"Spocialized groups mostly banking and world\ntrading circles tond to be critical of Secro-\ntery Morgenthau and particularly of Harry White\nfrom long-standing antipathy. Therefore most\ntalk to be hoard is dubious. Those specialized\ngroups fully recognize importance of inter-\nnational handling of currency and bonefits to\nUnited Statos thoroby. Their doubts concorn\nparticular mothods proposed. There is con-\nsiderable feeling that funds will largoly be\ncontributed by big powers particularly Unitod\nStates and will drain sieve-like through smaller\n* The analyses of oditorial opinion referred to above (foot-\nnoto, p. 6) showed that suspicion of Britain was voiced by\nsome, and dosire for tho strict gold standard by almost all,\nof those dofinitely opposed to the plan. The isolationist\npress condemned the plan as a schome to get our gold. A\ndifferent type of objossion, especially in the later editori-\nals, was based on the argument that the problem of exchange\nstabilization is identical with that of getting individual\nnations to follow sound monoy policies and because the plan\ncontains no provisions for compelling the members to follow\nsuch policios. More simply stated, they want the gold stand-\nard and do not like the monotary and fiscal theories of Baron\nKoynos which thoy think the plan oncourages.\nRegraded Unclassified\n- 9 -\npowers. Numerous specialists feel more basic\nand fundamental reforms would be attained if\ninternal economies of various countries could\nbe rendered more sound,' E\n\"Suspicion that the international financialists\nare gotting together to retain gains made during\nwar and to reinstitute the gold standard or managed\ncurrency system which will implement monopolies\nand cartols, and be used as a fulcrum to dostroy\nrevolutionary and popular movements for social\nand economic advancement by the working people\nof the world.\" LE\n\"They want return to gold standard and fact\nthat Koynes is willing to use gold as 'yardstick'\n(though not as base) has mollowed thom somewhat.\" E\nWHO STANDS\nLess than half of the respondents comment\nTO GAIN?\ndirectly on whother the United States stands\nto gain or to lose by our proposed contri-\nbution to an international fund and a world bank. Among\nthis minority tho bolief that this country will gain as much\nas others/fer loss frequent than the belief that we shall\nnot gain, or that others will profit more than we do through\ninternational oconomic stabilization and free exchange of\ngoods. Conviction that others will gain more than this coun-\ntry is reported more often by oditors than by labor editors.\nBelief that wo are slated to \"pay the lion's share\" is not\ninvariably coupled with resentment, sinco somo feel that\nour greater resources and slighter burdon of war make such\na balance \"norally right.\" One oditor compares attitudes\non this score with early attitudes toward lond-lease. There\nis also somo fooling that oven though others may gain more\nthan 170 do, the proposed arrangoments are ossontial to our\nfuture welfare.\nAcquiesconce is by no means predominant, howover, among\nthose who feel wo shall bo \"footing the bills of the world.\"\nA substantial minority (about one-fourth of the respondents)\nroports concern lost this country play the rolo of \"sucker\"\namong nations and ruin itsolf in an attempt to be \"Santa\nClaus\" and start a \"European WPA.\" Corollary to this worry\nis the misgiving that England will \"outsmart\" us bocause our\nreprosentativos are not as sly and as exporienced as hers,\nor that England and Russia will \"gang up on us.\" This note\nis less conspicuous for its frequoncy than for the fact that\nRegraded Unclassified\n- 10 -\n228\nit is clearcut and definite in the midst of provailing\nvagueness. Dospito its intensity, it is voiced loss often\nthan the conviction that offective international coopera-\ntion is imporative for the sake of the postwar oconomy and\nthe maintonance of poace.\n\"Peoplo bolieve vaguely the US would benofit by\nmonotary and exchange stability and hope con-\nferonce succoods in ostablishing world bank.\" LE\n\"Bolief general hore that the conference is one\nof many nocessary stops toward laying the ground-\nwork for more lasting peace, that US will share\nin common oconomic and political bonofits. E\n\"Have found none who bolieve this country would\nbenefit. Attitude much like that which first\ngrooted Lond Lease proposal.\" E\n\"Popular conviction now as in former years scens\nto be other pooples will naturally profit more\nfrom our cooporation than wo from theirs.\" E\n\"Cannot find anyone who bolieves United States\nwill bonefit as nuch ns England and therefore is\nshruggod off as boing another of Churchill-Keynes!\nclover schomes. In fact some think England and\nRussia ganging up there. All this indicates\nentire lack of knowledge even ationg those\nsupposed to be initiates. My bolief reason is\nlack of clear statements to public in advance\nof moeting and now too lato to nake proper in-\nprossion.\" E\n\"Ono or two had idea wo would be contributing\nnoney to an European WPA system and would pre-\nfor WC gave it to our own people instend.\" LE\n\"The chief danger in any international postwar\nprogram is the foar that Uncle Sam will play\n'Santa Claus.' I doubt if the war has beon\nbrought close enough home to any of our people\nexcept those who have lost sons and brothers\nand husbands to make us as farsighted as we\nought to bo in postwar doalings.\" E\nRegraded Unclassified\n- 11 -\n\"Financial circles genorally agree that U.S.stands\nto benofit by such contributions to monotary and\nexchange stability and long-term economic develop-\nmont, although foar is expressed by several that\nEngland may 'out-trado' U.S. because of former's\nlongor and wider experience in international mone-\ntary mattors. One reaction was that US is ropre-\nsontod by few outstanding mon in financial field,\nde contrasted with England's dologation, and that\nEncland is dictating policies.\" E\nRegraded Unclassified\n- 12 -\n229\nAPPENDIXA\nAvailable figures indicate that desire for international\noconomic collaboration after the war lags far bohind de-\nsiro for joint military and political efforts to maintain\npeace. Public opinion studies during the course of the\nwar have shown a strong and growing majority in favor of\nan international socurity organization. Recent studios\nby the National Opinion Research Contor (April, 1944) and\nthe Iowa Boll (July, 1944) show 80% of the respondents\nfavoring active participation by tho Unitod States in an\ninternational organization to prevent future wars. Ac-\ncording to tho Fortune Survoy of July, 1944, among college\nyouth the approval of such participation risos to 94%\nFar loss study has boon dono of opinions about postwar\noconomic collaboration among nations. According to surveys\nconducted by tho Survoys Division of OWI during 1943, only\none-third of the people have hold the opinion that we should\nallow other countrios to soll moro goods horo after the war;\nand almost half (46%) feel that it is possible for this\ncountry to have prospority at the samo time that other\ncountries are having doprossions. Studies made in January,\nJuno, end November showed this minority remaining almost\nconstant throughout the year. In January, 1943, 61% said\nwe should not try to seo that there is no unemployment in\nother countries after the war (25% said we should; 11% had\nno opinion). (What the Civilian Thinks, Memorandun No. 82,\nSurvoys Division, Buroau of Spocial Services, Office of\nWar Information, July 18, 1944.)\nAmong business executivos responding to a Fortune Management\nPoll (May, 1944) a large majority believed that an intor-\nnational organization to keep the poace would greatly in-\nprove prospocts for an incroase in United Statos foreign\ntrade after the ver. Of thoso executives, 30% said thoir\nown companies would bonofit directly by such an increase,\n28% said they would bonefit indiroctly, and 37% said thoy\nwould not bonofit noticeably.\nRegraded Unclassified\n- 13.-\nAPPENDIX B\nANSWERS TO TELEGRAPHIC INQUIRY, BY PANEL, STATE, AND LOCALITY\nTotal: 40 respondents, from 33 localities, in 23 States\nEditors (E): 21 respondents, 20 localities, 18 States\nLabor Editors (LE): 16 respondents, 15 localities, 11 Statos\nAlabama\nMississippi\nBirmingham (E)\nBiloxi (LE)\nGulfport (E)\nCalifornia\nFontana (LE)\nMissouri\nSan Francisco (E, LE)\nKansas City (E)\nSt. Louis (2E, LE)\nConnecticut\nHartford (E)\nNew Jersey\nMontclair (E)\nDistrict of Columbia\nWashington (LE)\nNow York\nBuffalo (E)\nGeorgia\nNow York City (2 LE)\nAtlanta (E)\nRochester (LE)\nWatertown (E)\nIllinois\nChicago (E)\nNorth Carolina\nAsheville (E)\nIndianc.\nEvansville (LE)\nOhio\nMichigan City (LE)\nCleveland (LE)\nIowa\nOrogon\nDos Moinos (E)\nPortland (E)\nLouisiana\nPennsylvania\nNew Orleans (E)\nPhiladelphia (E)\nMassachusotts\nSouth Carolina\nBoston (E)\nGreenwood (E)\nMichigan\nVirginia\nDetroit (LE)\nRichmond (E)\nMinnosota\nWashington\nMinnoapolis (IE)\nSpokane (E)\nTacoma (LE)\nWisconsin\nKonosha (LE)\nMilwaukee (LE)\nRegraded Unclassified\n230\nAugust 18, 1944\nMr. Gaston\nSecretary Morgenthau\nI have received your memorandum of August 16th in\nregard to my using a Coast Guard plane.\nWould you please follow through on this for me\nwith Admiral Waesche and Mr. Forrestal. Famished -\nRegraded Inclassified\n231\nAugust 16, 1944.\nMemorandum\nTO:\nSecretary Morgenthau\nFROM: Mr. Gaston\nA regulation contained in the Navy Department Bulletin\nfor July 31 seems to require that before using a Navy or\nCoast Guard plane you would have to apply to the Army and\nbe refused, then apply to the Secretary of the Navy and\nstate that anyother form of transportation was unavailable\nor impracticable. McCaffery called it to my attention and\nwas disturbed about it. I thought it a mere routine order\nthat did not affect your special arrangement and talked\nwith Waesche, who was of the same opinion. However, he\ntalked with Bard and Bard said that the present arrangement\nwould stand at least until Forrestal returns, at which time\nWaesche will talk to Forrestal to confirm the special arrange-\nment with Frank Knox.\nwr\nForestal.\nRegraded Unclassified\n232\nTREASURY DEPARTMENT\nforget-\nINTER OFFICE COMMUNICATION\nDATE Aug. 18, 1944\nTO Secretary Morgenthau\nFROM Mr. Shaeffer CoP.\nThe memorandum from President Roosevelt to yourself\nexpressing his pleasure over the results of the Fifth War\nLoan was never made public.\nMr. Hassett's office at the White House refused to\ncable to the President the changes made in the original\nstatement with the result that Mr. Roosevelt's approval\nwas not received here until August 14, or ten days after\nthe results of the drive had been made public.\nThe White House would not make the message public,\nand Mr. Gaston agreed with me that the President might be\nembarrassed by the belated publicity attending his message.\nRegraded Unclassified\nTO:\n233\n+-4 1-4t - +\nDu Latta called saying\nPres. approach- -\nCalled Bob-\nGaston says the late to\nrelease\nFred Smith\nRoom 2901\n234\nMr. Maurice Latta\nAugust 4, 1944\nMr. Fred Smith\nAttached (exhibit A) is a copy of the memorandum received\nby the Secretary. Exhibit B is a suggested way of changing it\nto avoid the difficulties involved in the President's quotation.\nThe last part of the President's statement cannot be used\nbecause it is untrue. The sale of Bonds does not in any way\neliminate or reduce the debt which will need to be paid at some\nfuture time. The only thing that will reduce post-war debt is\nincreased taxes. Hence, it would seem wise to avoid the entire\nsubject and change the statement in accordance with the suggestion\nas in exhibit B.\nI have just checked with the Secretary, and he agrees\nwith this procedure.\nFS:gr\nRegraded Unclassified\nPaturday 235\nSECRET\nE\nThe White House\nWashington\n3 August 1944\nMEMORANDUM FOR:\nThe Secretary of the Treasury\nThe below quoted message has been received\nvia White House Map Room Communications Channels at\n7:50 p.m. for transmittal to you:\n\"From the President for the Secre-\ntary of the Treasury.\n\"Reference your message of August 2,\n1944. I am very happy to hear that the\nand and forces supplied\nFifth War Loan has passed the 20 billion\nwith every this Phis may\nme dropt at\nmark. This proves that the American people\nunderstand the great objective of paying\na very large percentage of the cost of this\nwar currently thereby reducing the debt\nthat must be paid in later years.\nVery respectfully,\nHenry W. Putnam (signed)\nherd to drive m to and Oilm Taky\nHENRY W. PUTNAM,\nCaptain, A.C.\nLending their our money to pay\nin 100 in\nRegraded Unclassified\n8-4-44\n236\nThe Secretary of the Treasury, Henry Morgenthau, Jr.\ntoday received the following message from the President:\n\"I am very happy to hear that the Fifth War Loan has\npassed the twenty billion dollar mark. This proves that the\nAmerican people understand the great objective of lending\ntheir own money to help pay the cost of this war, and to\nkeep the Armed forces supplied with everything they may\nneed to drive on to Berlin and Tokyo in the shortest\npossible time. Franklin D. Roosevelt.\"\nQq'd G\nSen one\nphone\nLATTA\nMATRICE\nRegraded Unclassified\n237\nMEMORANDUM FOR THE SECRETARY.\nAugust 18, 1944.\nMail Report\nThis week's mail was a repetition of that re-\nceived last week. Tax mail was light, and bond mail\nheavy but monotonous. A few questions about tax\nrulings; one suggestion about the sale of car use\nstamps; and a number of urgent requests for refunds\nmade up the entire tax correspondence.\nFederal Savings and Loan Associations have been\ncarrying on a drive to be allowed the same privileges\nas banks in cashing bonds over-the-counter. There\nwas one unfavorable comment on this over-the-counter\nplan -- otherwise, no further reaction to it. Most\nof the replies to the redemption slip explained\npersonal emergencies. However, one woman stated that\nshe regularly cashes her bonds and deposits the money\nwith the Minneapolis Mutual Life Insurance Company.\nAfter a few weeks in which only 30 or 40 bonds were\nsubmitted here for redemption, the number has again\nrisen with 69 last week and 76 this. There were\n20-odd complaints about delays in handling bonds or\nin paying interest.\nThe number of out-of-date checks being sent in\ncontinues to increase. Quite a few of these come from\nservice men who have been out of the country for the\nyear which is allowed as the valid period. It would\nseem that this problem may increase during the coming\nmonths.\nOnly one small donation reached the Treasury\ndirectly. However, two others -- one for $1,600 and\none for $400 -- were submitted through the Navy Depart-\nment.\nThere has as yet been no comment on the Secretary's\ntrip or radio speech from abroad,\nGabwille E. Forbush\nRegraded Unclassified\n238\nGeneral Comments\nG. M. Wilson, Credit Manager, M. D. Muttart Limited,\nDistributors of Lumber and Building Supplies,\nEdmonton, Alberta. We are writing you with reference\nto $4,327.16 which is due us on the account of the\nU. S. Public Roads Administration and the R. Melville\nSmith Company. # HH We have not heard anything on\nthis account for almost a year, except the odd letter\nfrom one Department to another, telling us to write\nhere and write there. Consequently, we have to appeal\nto you for this balance. It is mainly for money which\nwe paid out to other Sub-Contractors in cash. We are\na small firm and right now we desperately need the\nmoney. I appreciate the fact that writing to the Head\nof your Department directly, is probably unorthodox.\nNevertheless, we have exhausted almost every other\nmeans of getting even a letter back with regard to the\nbalance of this account, and have been unsuccessful.\nWe have sent the account in greatest detail to the various\npeople who have been so good as to request same and see\nno reason why the account should not have been paid long\nbefore this.\nE. H. Bruening, Lt. Cmdr. U.S.N.R., American College\nof Dentists, Tucson, Arizona. Allow me to compliment\nyou and your fellow workers on the very remarkable suc-\ncess of the Bretton Woods conference. This may prove\nto be the MOST IMPORTANT step toward a foundation for\na prolonged peace among the important nations of the\nearth.\nMrs. Melvin Piff, Chicago, Illinois. Perhaps my re-\nquest is unusual, but I wonder if you can help me\nsolve a problem. I am a Private's wife, and six months\nago I gave birth to a son. I've been managing to\nget myself back to normal as best as I can on my allot-\nment. But my biggest problem is the necessary dental\nRegraded Unclassified\n239\n- 2 -\ncare. Is there any way I can get a loan to pay for\nthis care? I have been having my teeth fixed at the\nNorth Western Dental Clinic (where the work is done\nby Army and Navy men). They require you to pay for\nthe work as it is completed, and sometimes there isn't\nalways the necessary funds available. I am sure you\ncan understand that $80 a month goes so far, and no\nfurther. Is there any way I can get a loan to pay for\nthis work? # # Then, as soon as I get my eyes fixed,\nI plan on going to work part time in a nearby war plant\nand repay all my debts. I suppose this all sounds very\ncomplicated and stupid. But it boils down to the fact\nthat my teeth and eyes need immediate care and I can't\nmanage it on $80 a month, so I'm asking for assistance\nuntil I can go to work. I don't ask for charity.\nThere are many who can't work that need that money.\nI can work, and will do so as soon as possible. I am\nasking only for temporary aid. I have nothing to offer\nfor security - except my husband's position - Private\nin the United States Army.\nThank you kindly for\nany assistance you may offer.\n--We consulted War Department and wrote her we had\ninformal advice from them that she should apply to\nthe Red Cross Chapter in Chicago. She replied--\nThanks for the advice. I contacted the Red Cross.\nThey told me in no uncertain terms they were no loan\nagency, and if I needed money, I should go to a Local\nLoan Agency. Sorry I bothered the Secretary, or the\nRed Cross. War wives aren't supposed to be people,\nanyway. For the duration I'll hide my head.\nRegraded Unclassifie\n240\n- 3 -\nFavorable Comments on Bonds\nGeorge M. Craig, President, Merchants National Bank,\nPort Arthur, Texas. I noticed in the paper about a\nweek ago that there was some prospect of your per-\nmitting the holders of Series E Bonds to borrow money\nfrom banks when they had pressing need. Our observa-\ntion has been that there are many of these Series E\nBonds sold when the owner only requires money for a\nshort time, or only requires a portion of what he\nhas invested. I believe that if banks were permitted\nto loan on these Series E Bonds, that the holders of\nthem would keep them instead of cashing them in. * *\n*\nRegraded Unclassified\n241\n- 4 -\nUnfavorable Comments on Bonds\nMrs. Charles J. Zurbarik, Bandera, Texas. I am writ-\ning you in regard to some bonds I have never received.\nMy husband is now a German prisoner and has been for\nover a year. He was captured April 24, 1943. He has\nbeen putting $27.50 in bonds monthly since then and\nhas had it arranged so that they were to be sent to me.\nI have never received any of them as yet. I would like\nfor you to have them traced and sent to me immediately.\nOple Ann Akers, Postmaster, Lynch, Kentucky. I would\nlike to know if there is any inheritance tax charged\nwhen a beneficiary cashes a Series E Bond. There is\na rumor circulating in town that there is an inheri-\ntance tax of forty percent on each bond cashed by a\nbeneficiary. Almost all bonds written at this office,\nand over the Company payrolls, have been made \"payable\non death\", and since this rumor has started, everyone\nwants their bonds changed to \"co-owner\". I asked the\nCollector of Internal Revenue from this County, but\nhe was not sure, but thought that there had to be an\nestate of $10,000 before an inheritance tax was charged.\nIt is taking quite a bit of our time having these bonds.\nchanged from a beneficiary to a co-owner, so will you\nplease tell me something definite?\nVincent A. Galligan, Taunton, Massachusetts. Back in\nFebruary, 1934, I sent to your Department for payment,\nthe following: W. S. Certificate No. 21503472, Series\n1918; 2 registered stamps affixed; reg. #4065; City Hall\nAnnex, New York City; 1 unregistered stamp Series 1919,\naffixed - mutilated. From your office on March 28,\n1934, I was advised these stamps had been received by\nyou on February 5, 1934. I was requested to submit a\nstatement, since the stamp purchased in 1919 was im-\nproperly affixed and mutilated, and an affidavit,\nRegraded Unclassified\n242\n- 5 -\nproperly notarized, showing how this mutilation came\nabout. * # I wrote your office to the effect that\nthe stamp in question had been mutilated by M. Joseph\n'Neill, now deceased, then Assistant Postmaster at\nTaunton, Massachusetts, he having stated that the\n1919 stamp should not have been attached, as was the\ncase. He attempted to remove it, and in so doing,\ncaused the mutilation of the stamp. # # # Since that\ntime, over nine years, I have heard nothing from your\noffice whatsoever, though I wrote you on January 9,\n1940, and again on March 5, the same year. I am dis-\ninclined to believe that even with a war on, and your\nDepartment as busy as the proverbial paper-hanger\n(and I don't mean Adolf -- God knows he's busy enough),\nthat inefficiency has come so far as to be complete\nneglect. Your attention to this matter immediately\nwill be very greatly appreciated.\nAnonymous - Postmarked Washington, D. C. I return\nherewith slip which came to me with remittance for\nSeries E War Bonds cashed. I agree with everything\non it, but it is your fault, not mine, that these bonds\nwere cashed. It is your red tape. The only reason\nthey were cashed is because they were turned over to\nme on a debt, and as you will not re-issue bonds in a\nnew name, all I can do is cash them, as otherwise, if\nI were to die, they would again become the property of\nthe person who turned them over to me, and my estate\nwould have to take anything (or nothing) that the\noriginal owner would specify. (They were made to the\ndebtor as owner, with me as co-owner). The debtor will\nnot make them to me as owner in the first place because\nthey are on a payroll plan, and he wants credit for\nbuying them. If you would change your rules 80 that\nat least one of the names on a bond could be changed,\nI would have them re-issued instead of cashing them in.\nI do not cash any of those I buy directly myself.\nI know it is wasted time sending this to you as your\nRegraded Unclassified\n243\n- 6 -\norganization is full of people who think they know\nbetter than anyone else what is good for them, and\nin true totalitarian style will force it down their\nthroats whether they like it or not, but I say it\nanyway.\nCloyd R. Bossler, Johnstown, Pennsylvania. I under-\nstand it cost $20,000.00 for the Commander-in-Chief\nand Candidate for President, to make that little cruise\nand fishing expedition. Is that what the War Bonds are\nbeing used for that we are being urged to buy more of?\nI would like to see the bond sales chart when that news\nbecomes generally known. # % # Why should the proceeds\nfrom War Bonds be used to finance a political campaign?\nI saw where one news commentator remarked that Mr. Dewey\ncould also make a trip to the Hawaiian Islands. True,\nhe can, but not at the expense of the taxpayer.\nRegraded Unclassified\n244\n- 7 -\nUnfavorable Comments on Taxation\nGerald R. Coonradt, Oak Park, Illinois. In the year\n1942 I lost about $1,450 when the U. S. Government,\nthrough condemnation proceedings, took from me 40\nacres of land I owned in Florida. I had invested\nabout $1,800 in the property and received about\n$350 in return. I did not receive the check in pay-\nment until early in 1943 and when about to make out\nmy income tax return for 1942 I asked a Deputy Col-\nlector of Internal Revenue if I could deduct the loss\nfrom my 1942 income, his answer was that I could not,\ninasmuch as I did not receive payment for the property\nuntil 1943. I then filed a simplified return, not\ndeducting the loss. Later I found that the Deputy was\nin error and therefore on March 15, 1943, I filed an\namended return, and claim for refund of $70.06. On\nNovember 25, 1943, I received a letter from the\nCollector here saying no action would be taken on the\nclaim until after March 15, 1944. About a month ago\nI wrote asking what action had been taken, but as yet\nhave received no reply. I have a legitimate claim to\na refund and would like to have some action on the\nmatter.\nRegraded Unclassified\n245\nAugust 18, 1944\nMy dear Cordell:\nSome time ago we sent over to the State\nDepartment a proposed statement for the\nPresident to issue in regard to taking care\nof the civilian population in Italy.\nI would appreciate hearing from you\nas to whether or not this proposed statement\nmeets with your approval.\nSincerely yours,\n(Signed) Henry\nHonorable Cordell Hull,\nSecretary of State,\nWashington, D.C.\nRegraded Unclassified\n246\nFORVICTORY\nTREASURY department\nBUY\nENITED\nSTATES\nWAR\nBONDS\nPROCUREMENT DIVISION\n-\nSTAMPS\nWASHINGTON 25\nOFFICE OF THE DIRECTOR\nAugust 17, 1944\nSECRET MEMORANDUM TO THE SECRETARY:\nThere is submitted herewith the weekly\nreport of Lend-Lease purchases.\nA requisition has been received for\nU. S. S. R. for 1,801,900 feet of marine\ncable at a cost of approximately $753,000.00.\nJohn A. Walsh\nActing Director of Procurement\nSha\n247\nBECTIST\nLEND-LEASE\nTREASURY DEPARTMENT, PROCUREMENT DIVISION\nSTATEMENT OF ALLOCATIONS, OBLIGATIONS (PURCHASES) AND\nDELIVERIES TO FOREIGN GOVERNMENTS AT U. S. PORTS\nAS OF AUGUST 9, 1944\n(In Millions of Dollars)\nAdministrative\nMiscellaneous &\nTotal\nU.K.\nRussia\nChina\nExpenses\nUndistributed\nAllocations\n$5522.2\n$2627.0\n$2257.3\n$133.9\n$15.9\n$488.1\n(5514.2)\n(2627.0)\n(2257.3)\n(133.9)\n(15.9)\n(480.1)\nRequisitions\n166.3\n$ 21.7\n$ 69.2\n$ .2\n-\n$ 75.2\nin Purchase\n( 150.3)\n( 19.8)\n( 84.7)\n( .2)\nI\n( 45.6)\nRequisitions not\n$ 85.3\n$ 35.2\n$ 41.4\n$ .1\n-\n$ 8.6\nCleared by W. P. B.\n( 107.6)\n( 38.2)\n( 49.2)\n( .1)\n-\n( 20.1)\nObligations\n$3866.2\n$1951.2\n$1564.6\n$ 63.0\n$13.3\n$274.1\n(Purchases)\n(3847.8)\n(1948.4)\n(1554.1)\n( 63.0)\n(13.2)\n(269.1)\nDeliveries to Foreign\n$2266.4\n$1408.9\n$ 784.7\n$ 24.1\n-\n$ 48.7\nGovernments at U. S.\n(2240.7)\n(1401.1)\n( 768.5)\n( 24.0)\n-\n( 47.1)\nPorts*\n*Deliveries to foreign governments at U. S. Ports do not include the tonnage that is\neither in storage, \"in-transit\" storage, or in the port area for which actual receipts\nhave not been received from the foreign governments.\nNote: Figures in parentheses are those shown on report of August 2, 1944.\nRegraded Unclassified\n248\nC\n0\nP\nY\nFEDERAL RESERVE BANK\nOF NEW YORK\nAugust 18, 1944\nCONFIDENTIAL\nDear Mr. Secretary:\nAttention: Mr. H. D. White\nI am enclosing our compilation for the week ended\nAugust 9, 1944, showing dollar disbursements out of the British\nEmpire and French accounts at this bank and the means by which\nthese expenditures were financed.\nVery truly yours,\n(Signed) H. L. Sanford\nH. L. Sanford,\nAssistant Vice President.\nThe Honorable Henry Morgenthau, Jr.,\nSecretary of the Treasury,\nWashington 25, D. C.\nEncl.\nCopy: imc: 8/22/44\nRegraded Unclassified\nANALYSIS OF DRITISH AND FRENCH LOCOUNTS\nStrictly\n(In illions of Dollars)\nWeek Ended August 9. 1944\nConfidential\nBANK OF ENGLAND (BRITISH GOVERNMENT)\nBANK OF FRANCE\nPERIOD\nDEBITS\nCREDITS\nNet Incn, (+)\nliet, Incr. (+)\nGov't\nTransfers to\nProceeds of\nTransfers\nOfficial\nSales of\nExpendi-\nfrom\nOther\nor Decr. (-)\nTotal\nTotal\nor Decr. (-)\nSecurities\nOfficial\nTotal\ntures\nOther\nTotal\nCredits\nin $ Funds\nDebits\nGredits\nin $ Funds\nCanadian\n(Orricial)\nAustralian\nDebits\n(a)\nAccount\nDebits\nCredits\nGold\n(S)\nAccount\n(c)\n(d)\n(e)\n(e)\n(d)\nFirst year of war (g)\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\nlar period through\nDecember, 1940\n2,782.3\n1,425.6\n20,9\n1,335.8\n2,793.1\n2,109.5\n106,0\n14,5\n561,1\n+ 10,8\n878.3\n1,098.4\n+ 220,1\nSecond year of\n2,203.0\n1,792.2\n3.4\n407.4\n2,189.8\n1,193.7\n274.0\n16.7\n705.4\n- 13.2\n38.9\nL8\n- 30.1\nThird year of war (1)\n1,235.6\n904.8\n3.7\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 war(1)\n764.0\n312.7\n170.4\n280.9\n1,072.3\n-\n0.5\n155.1\n916.7\n+ 308.3\n10.3\n1.0\n- 9.3\n1943\n42.4\n16,8\n10,6\n22,0\n86,2\n-\n-\n15.0\n71.2\n+ 36.8\n-\n-\n-\nSeptember\nOctober\n38,2\n16.0\n-\n22,2\n115,4\n-\n-\n40.5\n74.9\n+ 77.2\n-\n-\n-\nNovember\n65.9\n42.4\n509\n17,6\n89,0\n-\n-\n3.5\n85.5\n+ 23.1\n-\n-\n-\n98.1\n16.3\n81,8\n134.5\n36.5\n98.0\n+ 36.4\n.\n-\n-\nDecember\n-\n-\n-\n1944\n-\nJanuary\n44.8\n22,2\n10.6\n12,0\n127.5\n-\n-\n1,0\n126.5\n+ C2,7\n-\n-\n-\n143.6\n14.3\n2.1\n127.4\n144.5\n-\n-\n29.0\n115.5\n+ 0.7\n-\n-\n-\nFebruary\n71.1\n12.5\n69.3\n133.3\n24,5\n108,8\n- 19,6\n-\n-\n-\nMarch\n152.9\n-\n-\nApril\n134,8\n14,9\n-\n119,9\n122,2\n-\n-\n27.5\n94-7\n- 12,6\n-\n-\n-\nMay\n125.1\n28,8\n8,1\n88,2\n164,7\n-\n-\n37.0\n127.7\n+ 39.6\n-\n-\n-\nJune\n101.9\n24.1\n77.8\n95.7\n-\n28,0\n67.7\n- 6.2\n-\n-\n-\n-\n-\nJuly\n150.9(r)\n12.3\n7.3\n131.3(r)\n85.9\n-\n-\n10.0\n75.9\n- 65.0(x)\n-\n-\n-\nAugust\nWeek Ended\nJuly 19, 1944\n12.3\n4,7\n-\n7.6\n12.7\n-\n-\n-\n12.7\n+ 0.4\n-\n-\na\n61.4\n7.1\n52.0\n10.3\n-\n-\n-\n10,3\n- 51.1\n-\n-\n-\nJuly- 26, 1944\n2.3\nAugust 2, 1944\n18.9\n6.5\n3.2\n9.2\n41.0\n-\n-\n-\n41.0\n4 22.1\n-\n-\n-\n10.0\n3.2\n1.1\n5.7\n7.3 (k)\n-\n-\n-\n7.3(k)\n- 2.7\n-\n-\na\n-\nAugust 9, 1944\nAverage Weekly Expendi tures Since Outbreak of Jar\nSee attached sheet for footnotes,\nFrance (through June 19, 1940) 519.6 million\nEngland (through June 19, 1940) $27.6 million\nEngland (through June 20, 1940 to Earch 12, 1941) 354.9 willion\nEngland (since Larch 12, 1941) 21.5\nmillion\nRegraded Unclassified\n(a) Includes payments for account of British Ministry of Supply Mission, British Supply Board, Ministry of Supply Timber\nControl, and Ministry of Shipping.\n(b) Estimated figures based on transfers from the New York Agency of the Bank of Montreal, Wresh 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 8334 million.\n(c) Includes about $85 million received during October, 1939 from the accounts of British authorized 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 seo tabulations prior to October 8, 1941.\n(1) For monthly breakdown see tabulations prior to October 14, 1942.\n(j) For monthly breakdown see tabulations prior to September 29, 1943.\n(k)\nIncludes 8 5.5 million apparently representing current and accumulated dollar proceeds of sterling area services and\nmerchandise exports.\nRegraded Unclassi ified\nANALYSIS OF CANADIAN AND AUSTRALIAN ACCOUNTS\nStrictly\n(In Millions of Dollars)\nWeek Ended August 9. 1944\nConfidential\nBANK\nOF\nCANADA (and Canadian Government)\nCOLL ONNEALTH BANK OF AUSTRALIA (and Australian Government)\nDEBITS\nCREDITS\nDEBITS\nCREDITS\nTransfers\nTransfers\nTransfers from Official\nto\"\nBritish A/C\nNet Incr.\nto\nProceeds\nliet Incr.\nProceeds\nOfficial\nof\n(+) or\nOfficial\nof\n(+) or\nPERIOD\nTotal\nBritish\nOthers\nTotal\nGold\nFor Own\nFor French\nOther\nDecr. (-)\nTotal\nBritish\nOther\nTotal\nGold\nOther\nDecr. (-)\nin $Runds(s)\nDebits\nA/C\nDebits\nCredits\nSales\nCredits\n$ Hunds (e)\nDebits\nA/C\nDebits\nCredits\nSales\nA/C\nA/C\nCredits\nFirst year of war (a)\n323.0\n16.6\n306.4\n504.7\n412.7\n20.9\n38.7\n32.4\n+ 181.7\n31,2\n3,9\n27.3\n36,1\n30.0\n6,1\n+ 4,9\nhar period through\nDecember, 1940\n477,2\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\nSecond year of war(b)\n460.4\n-\n460.4\n462.0\n246.2\n3.4\n123.9\n88.5\n+ 1.6\n72.2\n16.7\n55.5\n81.2\n62.9\n18.3\n+ 9.0\nThird year of war (c)\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\nFourth year of war(d)\n723.6\n723.6\n956,8\n47.1\n170.4\n-\n-\n741.3\n235,2\n197,0\n155.1\n41.9\n200.4\n-\n200,4\n+ 3.4\n1943\n47.2\n47.2\n70.1\n10.6\n59.5\n+ 22.9\n16.8\n15.0\n1,8\n20.0\n-\n20.0\n+ 3.2\nSeptember\n-\n-\n-\nOctober\n32,1\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\n-\nNovember\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\nDecember\n146.8\n0.3\n146.5\n55.1\n-\n-\n55.1\n- 91.7\n39.7\n36.5\n3,2\n27.0\n-\n27.0\n- 12.7\n-\n1944\nJanuary\n32.3\n1\n32.3\n78.5\n-\n10.6\n-\n67.9\n+ 46.2\n6.0\n1,0\n5.0\n11.3\n-\n11.3\n+ 5.3\nFebruary\n25.4\n-\n25.4\n110.5\n23,1\n2,1\n-\n93.3\n+ 93.1\n31.3\n29.0\n2,3\n28.6\n-\n28,6\n- 2.7\nMarch\n30.3\n0.5\n29.8\n68,6\n15.0\n12.5\n-\n61.1\n+ 58.3\n27.6\n24.5\n3.2\n29,9\n.\n29.9\n- 2.3\n+ S.9\nApril\n183.6\n-\n183.6\n96.7\n-\nI\n-\n96.7\n- 86.9\n29.5\n27.5\n2.0\n39-6\n-\n39.4\nMAY\n154.2\n,\n154.2\n86.3\n-\n8.1\n-\n78.2\n- 67.9\n42.6\n37.0\n5.6\n39.6\n-\n39.6\n- 3.0\nJune.\n100.1\n0.1\n100.0\n63.3\n-\n-\n63.3\n- 36.8\n31.4\n28.0\n3.4\n21.8\n-\n21.8\n- 9,6\n-\n10.4\n20.6\n20.6\n+ 0.2\nJuly\n43.7\n43.7\n73.2\n-\n7.3\n-\n65.9\n+ 29.5\n20.4\n10.0\n-\n-\nAugust\nWeek Ended\n-\n4.2\n6.6\n-\n-\n-\n6.6\n+ 2,4\n1.9\n-\n1.9\n0.2\n-\n0,2\n- 1.7\nJuly 19, 1944\n4.2\nJuly 26, 1944\n16.8\n-\n16.8\n23.1\n7.1\n-\n16.0\n+ 6.3\n2.1\n-\n2.1\n3.3\n-\n3.3\n+ 1.2\n-\nA upust 2, 1944\n3.6\n-\n3.6\n18.5\n-\n3.2\n-\n15.3\n+ 14.9\n0.3\n-\n0.3\n2.4\n-\n2.4\n+ 2.1\nAugust 9, 1944\n7.3(f)\n-\n7.3\n10.8(f)\n-\n1,1\n-\n9.7(s)\n+ 3.5\n1,7\n-\n1.7\nO.T\n-\n0,7\n- 1,0\nAverage Weekly expenditures 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 October 14, 1942.\nThird year of war\n10,1 million.\n(d) For monthly breakdown see tabulations prior to September 29, 1943.\nFourth year of war\n13.9 million.\n(e) Reflocts c \"anges in all dollar holdings payable on demand or maturing in one year.\nFifth year of war (through August 9, 1944)\n16.7 million.\n(f) Does not reflect transactions in short term U. 5, securities.\n(g) Includes $ 0.9 million deposited, by War Supplies, Ltd.\nand a B.5 million received from New York abbounts of Canadian Chartered Banks,\nRegraded Unclassified\n252\nPLAIN\nAugust 18, 1944\nCIRCULAR, Eighteenth\nTo Certain American Diplomatic Officers:\nThe Radio Bulletin of August 17 contains the joint declara-\ntion of the British and United States Governments in response to\nthe offer of the Hungarian Government to permit the emigration\nof certain categories of Jews from Hungary. As you have done\nwith previous press releases on refugee matters, kindly secure\nthe widest possible distribution for this declaration. The\noriginal offer of the Government of Hungery was made public in\nSwitzerland by the Intercross on July 18 89 follows:\nQUOTE Following steps taken in Budapest by ICRC in Geneva\nHungarian authorities have given the committee official assur-\nances that transportation of Jews beyond Hungarian frontiers\nhas ceased and that the ICRC are authorized to furnish relief\nof Jews who are interned or in forced residence in Hungary.\nThe commiteee are furthermore empowered to cooperate in the\nevacuation of all Jewish children under ten years of age who\nare in possession of visas to reception countries and all Jews\nin Hungary holding entrance visas to Palestine will receive\npermission from the authorities to leave for that country.\nUNQUOTE\nHULL\n(GLW)\nSend to AMLEGATION Bern, Switzerland\nAMLEGATION\nStockholm, Sweden\nAMPOLAD Caserta Italy\nAMEMBASSY\nLisbon, Portugal\nAMEMBASSY Madrid, Spain\nAMEMBASSY\nAnkara, Turkey\nWRB: GLW: Kc 8/17/44\nSE\nWE\nRE\nNOE\nRegraded Unclassified\n253\nAugust 18, 1944\nMEMORANDUM\nTO:\nMr. Warren\nFROM:\nMr. Pehle\nIn order that our missions in London, Ankara\nand Stockholm may be fully informed regarding the\nHungarian situation, I think that we should repeat\nto all three missions as soon as possible cable\nNo. 5197 of August 11 from McClelland in Bern. The\ntext of our reply to this cable once it has been\nagreed upon should also be communicated at the same\ntime. You will recall that with my memorandum of\nAugust 17th to Mr. Stettinius, I sent a proposed reply\nto McClelland for State Department clearance.\nI assume that these three as well as other\nmissions have received copies of the joint statement\nof the British end American Governments concerning the\nacceptance of the so-called Horthy offer.\n(Signed) J. W. Pehle\nRegraded Inclassified\n254\nA-388\nPLAIN\n6:35 a.m.\nAugust 18, 1944\nAmerican Embassy,\nSan Jese,\nDepartment's despatch no. 607, July 24, 1944.\nCelia Mandelbaum, number seven on the list under\nreference should read Sylvia Helena Mandelbaum.\nHULL\nae C\nSWP:RCE:FAH\n8/16/44\nWRB\nRegraded Unclassified\nFROM: Ciudad Trujillo, D.R.\nDATE: August 18, 1944\n255\nRec'd: August 21, 1944 p.m.\nSECRET\nThe Secretary of State\nWashington, D. 0.\n4-397, August 19. 1944, 10:30 a.m.\nDepartment's secret instruction no. 21 of August 11,\n1944.\nI have spoken to Foreign Minister Pena Batlle regard-\ning the possible issue of Dominican documentation to\nBuropean refugees. The Minister is studying the letter\nsent on August 10 to Ambassador Copello by Mr. Hooker: he\nstated that he would confer in the premises with President\nTrujillo this week-end, and hoped to be able to give no\nhis Government's reply \"within the next four or five days\".\nAlthough the decision will be made by President Tru-\njillo, it was obvious that the Foreign Minister is far from\nenthusiastic. While stating that he fully recognises the\nhumanitarian aspects of the proposal and also emphasising\nthe role which his Government has already played \"in 008-\nparison with other governments of the new world\" in taking\nsteps on behalf of European refugees, he cited a number of\ndifficulties such as the temptation to corruption in the\nissue and handling of documents and the problem inherent\nin trying to establish controls sufficient to safeguard\nthis country against the entry of undesirables. He appeared\nto be fully aware of the conduct of numerous Latin-American\ndiplomatic and consular officers in the past few years, and\nthe notorious visa racket which has flourished side by side\nwith sincere humanitarian efforts.\nAlthough hitherto Pena Batlle has always referred\nfavorably to Jewish refugees now here, in recent conversa-\ntions he has differentiated between those at the Sosua\ncolony (my despatch no. 205 of August 8, 1944) and about\n500 other Jewish refugees alleged to be in the capital\nand vicinity \"competing with Dominican enterprises\".\nPena Batlle also once more brought up the question\nof Spanish refugees (my telegram no. 368 of August 7. 1944\nand previous correspondence) remarking, albeit with a\ncertain amiability, on the cancellation of the Panamanian\nvisas as having been done at the instance of the American\nGovernment, and complaining that the Governments of other\nCaribbean countries and Mexico now are willing to take\n\"only the good ones, leaving us with the bad ones\".\nIt is clear\nRegraded Unclassified\n256\nPage two. A-397 from Ciudad Trujillo, D.R., dated August 16, 1944.\nIt is clear therefore that his views on our current\n\"letters of protection\" project are being considered in\nrelation to the refugee problem as a whole, insofar as the\nlatter affects the Dominican Republic. It is inevitable\nthat this should be the case, and I hope therefore that\nthe foregoing may be useful as background in such further\nconversations as may be held with Ambaseador Copello.\nIn general it has been President Trujillo's policy to\ngo along with us on all of these matters, but the Foreign\nMinister is now apparently asking himself such questions\nas, Why doesn't the United States issue letters of protec-\ntion; Why is the Dominican Government singled out for the\nexperiement when it has already done more than most American\nRepublics on behalf of refugees, et cetera.\nAlso the Foreign Minister apparently does not clearly\nunderstand that procedure can be adopted respecting appli-\ncations for the proposed \"letters of protection\" and how\nthey can be delivered to the individuals concerned without\nencouraging a reneval of the flagrant abuses of a few years\nago.\nI shall report further as soon as the Foreign Minister\nhas consulted with President Trujillo.\nBRIGGS\n848\nHOB/mg\nRegraded Unclassified\n257\nAIRGRAM\nFROM:\nCiudad Trujillo, D.R.\nDATED:\nAugust 18, 1944\na\nRec'ds August 23, 1944 é p.m.\nUNRESTRICTED\nSecretary of State\nWashington, D. C.\nA-401, August 21, 1944, 10:30 a.m.\nDepartment's circular telegram of August 12,\n1944, 8 p.m. regarding refugee children.\nForeign Minister Pena Batlle states that\nthere will be no objection in principle to in-\ncluding children from Hungary and that he will\nsend me a note to that effect.\nBRIGGS\n848\nEOB:len:eng\nRegraded Unclassified\n258\nKD-731\nPLAIN\nLONDON\nDated August 18, 1944\nRec'd 11:12 a.m.\nSecretary of State\nWashington\n6668, Eighteenth\nLondon papers this morning carried declaration\nidentical with that quoted in Embassy's 6609 sixteenth.\nWINANT\nCSB\nRegraded Unclassified\n259\nMAE-973\nPLAIN\nLondon\nDated August 18, 1944\nRec'd 11:59 p.m.\nSecretary of State,\nWashington.\n6710, Eighteenth\nt\nEmbassy will be represented àt informal conference to be held\nafternoon of August 21 with representatives Foreign Office and IGC\nto discuss means of implementing acceptance of Hungarian offer to release\nJews. Please endeavor have any instructions or comments reach here\nby norning that day.\nWINANT\nHTM\nRegraded Unclassified\n260\nCABLE TO AMEMBASSY LONDON\nPlease forward the following message to Mr. Joseph Linton,\n77 Gr. Russel Street, London, WC1:\nQUOTE Yours 28/7 to Goldmann. One Understand that Paraguay\noffered to exchange Vittel holders of Paraguayan passports\nfor German civilians and that no German answer received.\nTwo Understand German Nationals from Netherlands East Indies\nare in Colombo, Ceylon. Three Please inform fully on action\nregarding Belgian veteran lists. World Jewish Congress.\nA. Leon Kubowitski. UNQUOTE\nAugust 18, 1944\n3,50 p.m.\nBAkzinsml 8/17/44\nRegraded Unclassified\n261\nCABLE TO AMEMBASSY, LONDON, ENGLAND\nWith reference to your 17252 of August 2 please inform IGC that\nAmerican Minister at Bern was instructed on April 10 to request Swiss\nto inform Germans that all Jews holding Latin American documents are\neligible for exchange against Germans in Western hemisphere. Germans\nhave already included some such persons in exchange groups and pro-\nbably will continue to do SO. All such persons are accepted by this\nGovernment in actual exchange. Inclusion of specific names in American\nexchange proposals has been deemed pointless by American authorities in\ncharge of exchange arrangements since neither party selects exchange\ngroups in accordance with other party's suggestions, but makes its own\nselections among all eligibles. Furthermore, in view of menner in which\nsuch documents were issued, information as to identity of persons hold-\ning them and names in which they have been issued is fragmentary.\nWhile eligibility of these persons for exchange in thus known to\nGermany, your and IGC's attention is drawn to passage in IGC's com-\nmunication regarding acceptance by Berlin of list for repatriation of\ngroup to Palestine and regarding lack of confirmation thereof by London.\nIt is hoped that such confirmation has since been obtained.\nFor your information, Amlegation Bern is being instructed to pro-\ntest sharply against the deportations reported by IGC. A special ground\nfor protest is present by reason of formal assurances given by German\nForeign Office to Swiss Legation Berlin on May 11 to the effect that\nbeginning that date all persons holding Latin-Americen passports in\ncivilian internment camps reserved for nationals of American continent\nwould be treated as American nationals notwithstanding any doubt as\nto the validity of their documents. Copy of instruction to Bern is\nbeing repeated to you, for your and IGC's information. Parallel pro-\ntests and public statements by British officials would be appreciated.\n9:25 a.m.\nAugust 18, 1944\nBAkzin:ml 8/16/44\nRegraded Unclassified\n262\nMS-301\nPLAIN\nLONDON\nDATED August 17, 1944\nRec'd 6:30 a.m.\nSecretary of State,\nWashington.\nUS URGENT\n6625, Seventeenth\nFOR PEHLE WAR REFUGEE BOARD FROM DUBOIS\nPlease acknowledge at once receipt of the two\nurgent messages sent to you yesterday.\nWINANT\nRR\negraded\nUnclassified\n263\nCABLE FROM WAR REFUGEE BOARD TO CHAPIN FOR SAXON IN ALGIERS\nPlease refer to your 2583 of August 4 requesting instructions\nwhether you are authorized to accept, chargeable to the War Refugee\nBoard, messages from private relief organizations for transmission\nto the United States and other destinations.\nSince the Executive Order establishing the War Refugee Board\nauthorized cooperation with private relief organizations, our practice\nhas been and is to make our wire facilities available to them when for\nsome compelling reason they cannot send their messages through private\ncable companies or it is not feasible to do 80, However, the private\nrelief agencies and not (repeat not) the War Refugee Board are expected\nto pay the cable charges for such messages, Accordingly, you are\ninstructed to follow our practice.\nTHIS IS WRB CABLE TO ALGIERS NO.\n46\nAugust 18, 1944\n3:40 p.m.\nMSargoy:dh 8/18/44\nRegraded Unclassified\n264\nAIRGRAM TO AMEMBASSY, PANAMA\nReferences made to your 84 of July 14.\nPlease inform the Foreign Minister of Panama that the\nDepartment and War Refugee Board appreciate the offer of\neconomic aid in the emergency refugee sheltering program made\nby Panamanian note 961 of July 10.\n9:30 a.m.\nAugust 18, 1944\nBAkzin:ml 8/16/44\nRegraded Unclassified\n265\nORIGINAL TEXT OF TELEGRAM SENT\nFROM:\nSecretary of State, Washington\nTO:\nAmerican Consulate General, Jerusalem\nDATED:\nAugust 18, 1944\nNUMBER:\n136\nCONFIDENTIAL\nPlease deliver the following message to Heshel Frumkin-\nGoldie Myerson, 115 Allenby, Tel-Aviv, Palestine, from Israel\nMereminski:\n\"Confidential yours July 29 discussed fully WRB who submitting\nfirst part your important war information competent authorities.\nSuggest your end negotiate directly appropriate Polish groups\nsimultaneously destruction gaschambers, crematories, etc.\nCable details amount necessary and manner transmission rescue\nthousands mentioned LVOV letter. WRB dealing energetically\nfour Redcross points. No indications here that Hungarian de-\nportation not stopped. WRB doing everything possible deal with\nHungarian situation including question children. American Jew-\nish organizations constantly activizing Hungarian Jews here\nlines similar your suggestions. Contacting various organizations\nconcerning Polish Government broadcasts from here appealing\nPoles save Jews last moment and provide Polish Embassy here\nwith lists Poles active rescue work demanded by American public\nopinion. Beleive it will work. All concerned interested you\nprovide me immediately information plans detailed suggestions\nfor immediately increasing number small boats possible\nmobilize Palestine neighboring countries islands etc. All ready\nhelp this most vital urgent problem cable same way without delay\"\nRegraded Unclassified\n266\nCABLE TO AMBASSADOR NORWEB AT LISBON AND DEXTER FROM THE DEPARTMENT AND THE WAR\nREFUGEE BOARD\n(1) In order to take all possible advantage of report set out in 1tem 1\nof Department's 2118 of July 28, WRB's 62, this Government is prepared to take\nsimilar action on behalf of relatives of American citizens and resident aliens\nentitled under the law to nonquota or preference quota immigration status.\n(2) Accordingly, consular officers in Portugal are hereby authorized\nto issue immigration visas to any alien who is the husband, wife, parent, or un-\nmarried minor child of an American citizen and on whose behalf nonquota or first\npreference status has been established by the approval by the Department of Justice\nof a petition filed by such citizen relative, or who is the wife or unmarried minor\nchild of an alien lawfully admitted into the United States for permanent residence\nand as such is entitled to second preference immigration status. The issuance of\nvisas is subject to the proviso, however, that (a) such person other than a child\nunder 16 years of age is found upon telegraphic reference to the Department for\nsecurity check not to be the subject of an adverse report or to be open to reason-\nable suspicion because of the circumstances of the case such as those attending the\nrelease of a male applicant of military age, (b) such person is not affirmatively\nfound by the consul to be inadmissible into the United States under the war, or\n(c) the consul does not consider that the case is one which should be recommended\nfor consideration under the committee procedure.\n(3) Consular officers in Switzerland, Sweden, Turkey, and Spain are\nsimilarly authorized and you should advise the Foreign Office that the Swiss\nGovernment is being requested to advise enemy governments, particularly Hungary\nand Germany, that American consular officers in neutral countries have been auth-\norized to issue an immigration visa to the alien husband, wife, parent, and un-\nmarried minor child of an American citizen, and the wife and unmarried minor child\nof an alien resident of the United States who has been in an area controlled by\nGermany or any of Germany's allies, provided that such person presents himself\nto an American consular officer and is found not to be disqualified for a visa,\nAt the same time, please attempt to secure the prompt agreement of the Portugese\nGovernment to advise enemy governments of Portugal's willingness to permit the\nentry into Portugal of persons falling within the categories described above.\nYou may assure Portugese officials that any such persons so admitted will be\nadequately maintained and that any who may be found not (repeat not) to be\nqualified for the issuance of a visa will be evacuated as promptly as possible.\nSimilar requests are being made of Switzerland, Spain, Sweden, and Turkey.\n(4) Appropriate private agencies are being advised of the foregoing\nso that the filing of petitions by citizens and resident alien relatives of\nvictims of persecution may be expedited, and names of persons whose status\nwithin the categories above mentioned is established will De cabled to you\nfrom time to time. If any persons within such categories should arrive in\nPortugal after Portugal has advised enemy governments in accordance with item\n3 above, but prior to any notification to you of the establishment of their\nRegraded Unclassified\n267\n-2-\nstatus, please advise Board promptly of their names and of the names and addresses\nof relatives claimed in the United States.\n(5) Please keep Department and Board advised of any developments in\nthis program.\nTHIS IS WRB LISBON CABLE NO. 78\nAugust 18, 1944\n3:35 p.m.\nLSLesser:tmh\n8/17/44\nRegraded Unclassified\n268\nOEN-865\nLisben\nDistribution of\ntrue reading only by\nDated August 18, 1944\nspecial arrangement.\n(Secret W)\nRec'd 5:20 p.m.\nSecretary of State,\nWashington.\n2554, August 18, 1944 5 p.m.\nTHIS IS WRB 157 CN FOR BRAGG UNITARIAN BOSTON FROM\nELIZABETH DEXTER USC 315\nPlease arrange someone neet Alice Moura and two\ndaughters sailing August 19 on SS SANTOME for Philadelphia.\nHusband Joso Pires Moura seaman United States Navy,\nUS SATRONE Three c/o Fleet Post Office. In view above\nsuggest Philadelphia Red Cross Home Service Section for meeting.\nThey are to stay with friends Jose Redrigues 195\nJefferson Street, Newark, N.J.. Notify them also of\nMoura family's coming. Mouras speak only Portuguese.\nNORWEB\nBB\nRegraded\nUnclassified\n269\nCABLE TO OFFICER IN CHARGE, AMEMBASSY, MADRID FROM THE DEPARTMENT AND THE WAR\nREFUGEE BOARD\n(1) In order to take all possible advantage of report set out in item 1\nof Department's 2126 of July 28, this Government is prepared to take similar action\non behalf of relatives of American citizens and resident aliens entitled under the\nlaw to nonquota or preference quota immigration status.\n(2) Accordingly, consular officers in Spain are hereby authorized to\nissue immigration visas to any alien who is the husband, wife, parent, or un-\nmarried minor child of an American citizen and on whose behalf nonquota or first\npreference status has been established by the approval by the Department of Justice\nof a petition filed by such citizen relative, or who is the wife or unmarried minor\nchild of an alien lawfully admitted into the United States for permanent residence\nand as such is entitled to second preference immigration status. The issuance of\nvisas is subject to the proviso, however, that (a) such person other than a child\nunder 16 years of age is found upon telegraphic reference to the Department for\nsecurity check not to be the subject of an adverse report or to be open to reason\nable suspicion because of the circumstances of the case such as those attending\nthe release of a male applicant of military age, (b) such person is not affirma-\ntively found by the consul to be inadmissible into the United States under the\nlaw, or (c) the consul does not consider that the case is one which should be\nrecommended for consideration under the committee procedure.\n(3) Consular officers in Switzerland, Sweden, Portugal, and Turkey\nare similarly authorized and you should advise the Foreign Office that the Swiss\nGovernment is being requested to advise enemy governments, particularly Hungary and\nGermany, that American consular officers in neutral countries have been authorized\nto issue an immigration visa to the alien husband, wife, parent, and unmarried\nminor child of an American citizen, and the wife and unmarried minor child of an\nalien resident of the United States who has been in an area controlled by Germany\nor any of Germany's allies, provided that such person presents himself to an Amer-\nican consular officer and is found not to be disqualified for a visa. At the\nsame time, please attempt to secure the prompt agreement of the Spanish Government\nto advise enemy governments of Spain's willingness to permit the entry into Spain\nof persons falling within the categories described above. You may assure Spanish\nofficials that any such persons so admitted will be adequately maintained and that\nany who may be found not (repeat not) to be qualified for the issuance of a visa\nwill be evacuated as promptly as possible. Similar requests are being made of\nSwitzerland, Turkey, Sweden, ano Portugal.\n(4) Appropriate private agencies are being advised of the foregoing\nso that the filing of petitions by citizens and resident alien relatives of\nvictims of persecution may be expedited, and names of persons whose status\nwithin the categories above mentioned is established will be cabled to you\nfrom time to time. If any persons within such categories should arrive in Spain\nafter Spain has advised enemy governments in accordance with item 3 above, but\nRegraded Unclassified\n270\n-2-\nprior to any notification to you of the establishment of their status, please ad-\nvise Board promptly of their names and of the names and addresses of relatives\nclaimed in the United States.\n(5) Please keep Department and Board advised of any developments in\nthis program.\nAugust 18, 1944\n3:35 p.m.\nLSLesser:tnh\n8/17/44\nRegraded Unclassified\n271\nFG\nSECRET \"N\"\nDistribution of\ntrue reading only by\nAugust 18, 1944\nspecial arrangement.\n7 p.m.\n(SECRET W )\nAMEMBASSY,\nMADRID\n2294\nPlease refer to the Department's No. 207 January 25 in regard to the\nestablishment of the War Refugee Board. The Executive Director of the Board,\nJohn W. Pehlo, has informed the Department that in conformity with the President's\nOrder of January 22, the Board proposes to appoint Mr. James H. Mann, represen-\ntative of the War Refugee Board in Madrid, as the Special Representative of the\nBoard with the designation by the Department as Special Attache to the Embassy\non war refugee matters. The President's Order provides that the State Department\nshalllappoint such Special Attaches on the recommendation of the Board, that they\nshall have diplomatic status, and that their duties and responsibilities shall be\ndefined by the Board in consultation with the State Department.\nIt is assumed that there will be no objection, although you may in your\ndiscretion approach the Spanish authorities informally if you consider it necessary\nor advisable to do SO, You are requested to confirm by telegram Mann's designation,\nor to advise us promptly if there is any reason why the designation should not be\neffective at once.\nYou should advise Mann that it\n(a) He is charged with the duty and responsibility of carrying out\nthe Board's policies and programs in Spain;\n(b) He is responsible to the Ambassador and should discuss his\nactivities and problems with him regularly and fully;\n(c) The Embassy will provide him with the necessary communications\nfacilities in carrying on his official duties;\n(d) He shall extend all possible assistance to the Ambassador in\ncarrying out the instructions contained in the Department's reference telegram;\n(e) He shall work with and give all possible assistance to public\nand private agencies operating in Spain in this field regardless of -whether such\norganizations are American, foreign or international;\n(f) He shall develop and assist in the development of programs\nand implementation of measures for the rescue, transportation, maintenance and\nrelief of refugees;\n(g) He shall 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, the\nSecretary of the Treasury has vested in the War Refugee Board and its represen-\ntatives in the field full authority to communicate with enemy territory to carry\nout the purposes of the Order. The Secretary of the Treasury has also delegated\nRegraded Unclassified\n272\n-2- # 2294, August 18, 7 p.m., to Madrid.\nto the War Refugee Board and its representatives the power to authorize any\npublic or private agenceis, who may be subject to the provisions of our Trading\nwith the enemy Act, to communicate with enemy territory for the purpose of carry-\ning out the Order. Mann is authorized to act accordingly.\nAfter receipt of confirmation of Mann's designation further detailed\ninstructions will follow from time to time.\nIn anticipation of your agreement to the foregoing appointment as indicated\nin your recent conversation with Assistant Secretary Shaw, Mr. Mann is preparing\nto depart for Madrid as soon as travel arrangements can be made.\nHULL\n(GLW)\nWRB:GLW:KG\nS/CR\nWE\nA-S\n8/17/44\nRegraded Unclassified\n273\nMAE-726\nStockholm\nDistribution of true\nreading only by special\nDated\nAugust 18, 1944\narrangement (SECRET w)\nRec'd\n10:42 a.m., 25th\nSecretary of State,\nWashington.\n3153, August 18, 3 p.m.\nTHIS IS OUR NUMBER 73 FOR WRB\nRumanian Government has now replied to overtures\nreported in our number 62 for WRB (Legation's 2920 of\nAugust 3, 3 p.m.) and affirms that it is receptive to\nthese proposals of facilitating evacuation of Jews from\nRumania either through making certain vessels in\nRumania available or the Bessarabia and Transylvania.\nAs a preliminary, however, they request written guar-\nantees as to expenses and information as to who will\nbe the guaranteeing party. Pursuant to your instruc-\ntions, local Rumanian Minister is being advised by\nSwedish Section of World Jewish Congress that it has\nin the meantime received information that active dis-\ncussions are being held in Ankara regarding these trans-\nprotation problems and that it appears best that entire\nnegotiations be carried out from there.\nRumanian Government also passed along the\nfollowing information.\nThat approximately 1000 Rumanian Jews were evacu-\nated in small vessels to Palestine during April and\nMay.\nB. That approximately 8000 Hungarian Jews were ex-\npected at Constansa this month from which point they\nwould be evacuated to Turkey on the SS SMYRNA.\nC. THat Rumanian decree ordering Hungarian Jews\nto be shot at Rumanian border was simply to prevent\nmass flight which in faot would greatly endanger their\nlives. Actually it is stated border guards have been\ninstructed privately to shoot no one and not a single\nJew has been shot fleeing across the border.\nRumanian Government has been assisting Jews in\nHungary with Rumanian passports and has taken special\nmeasurese to got them into Rumania.\nJOHNSON\nWTD\nRegraded Unclassified\n274\nCABLE TO MINISTER JOHNSON AT STOCKHOLM FOR OLSEN\nPERSONAL FROM PEHLE\nI regret sincerely the tragic news conveyed in your 3046\nof August 11, No. 70 to WRB. I hope and trust that the report re-\nceived by you proves to have been erroneous, and that Vokietaitis\nwill be rescued. I want also to take this occasion to congratu-\nlate you on the imaginative and effective work you are doing despite\nthe most forbidding difficulties. We all appreciate keenly the in-\nitiative and ingenuity that you have displayed, as well as the tire-\nless effort to which your accomplishments testify.\nTHIS IS WRB STOCKHOLM CABLE NO. 76.\n11:45 a.m.\nAugust 17, 1944\nLSLesser:tmh\n8-16-44\nRegraded\nUnclassified\n275\nCABLE TO MINISTER JOHNSON AT STOCKHOLM AND OLSEN FROM THE Dept. and the War\nRefugee Board.\n(1) Please express Department's and Board's appreciation to Foreign\nOffice for action reported in your 3074 of August 12, No. 71 to WRB. In order\nto take all possible advantage of report set out in item 1 of Department's 1501\nof July 28, WRB's 58, this Government is prepared to take similar action on be-\nhalf of relatives of American citizens and resident aliens entitled under the\nlaw to monquota or preference quota immigration status.\n(2) Accordingly, consular officers in Sweden are hereby authorized\nto issue immigration visas to any alien who is the husband, wife, parent, or\nunmarried minor child of an American citizen and on whose behalf nonquote or\nfirst preference status has been established by the approval by the Department\nof Justice of e petition filed by such citizen relative, or who is the wife or\nunmarried minor child or an alien lawfully admitted into the United States for\npermanent resident and as such is entitled to second preference immigration\nstatus. The issuance of visas is subject to the proviso, however, that (a)\nsuch person other than a child under 100 years of age is found upon telegraphic\nreference to the Department for security check not to be the subject of an ad-\nverse report or to be open to reasonable suspicion because of the circumstances\nof the case such as those attending the release of a male applicant of military\nage, (b) such person is not affirmatively found by the consul to be inadmissible\ninto the United States under the law, or (c) the consul does not consider that\nthe case is one which should be recommended for consideration under the committee\nprocedure.\n(3) Consular officers in Switzerland, Turkey, Portugal, and Spain are\nsimilarly authorized and you should advise the Foreign Office that the Swi ss\nGovernment is being requested to advise enemy governments, particularly Hungary\nand Germany, that American consular officers in neutral countries have been\nauthorized to issue an immigration visa to the alien husband, wife, perent,\nand unmarried minor child or an American citizen, and the wife and unmarried\nminor child of an alien regident of the United States who has been in an area\ncontrolled by Germany or any of Germany's allies, provided that such person\npresents himself to an American consular officer and is found not to be dis-\nqualified for a visa. At the same time, please attempt to secure the prompt\nagreement of the Swedish Government to advise enemy governments of Sweden's\nwillingness to permit the entry into Sweden or persons falling within the\ncategories described above. You may assure Swedish officials that any such\npersons 90 admitted will be adequately maintained and that any who may be\nfound not (repeat not) to be qualified for the issuance of B visa will be\nevacuated as promptly AS possible. Similar requests are being made of Swit-\nserland, Spain, Turkey, and Portugal.\n(4) Appropriate private agencies are being advised of the foregoing\nso that the filing of petitions by citizen and resident alien relatives of\nvictime of persecution may be expedited, and names of persons whose status\nwithin the categories above mentioned is established will be cabled to you\nRegraded Unclassified\n276\n-2-\nfrom time to time. If any persons within such categories should arrive in Sweden\nafter Sweden has advised enemy governments in accordance with item 3 above, but\nprior to any notification to you of the establishment of their status, please ad-\nvise Board promptly of their names and of the names and addresses of relatives\nclaimed in the United States.\n(5) Please keep Department and Board advised of any developments in\nthis program.\nTHIS IS WRB STOCKHOLM CABLE NO. 77\nAugust 18, 1944\n3:40 p.m.\nLSLesser:tmh 8-17-44\nRegraded Unclassified\n277\nPARAPHRASE OF TELEGRAM RECEIVED\nFROM:\nAmerican Legation, Stockholm\nTO:\nSecretary of State, Washington\nDATED\nAugust 18, 1944\nNUMBER: 3166\nSECRET\nFrom a confidential source I was informed this afternoon\nthat recently he had seen a personal friend, whom he character-\nized as entirely reliable, a Swede connected with the Swedish\nLegation in Budapest who had been here on a visit. This friend\ntold him that with his own eyes he had seen the following.\nApproximately 20,000 Hungarian Jews, children, men and women,\nhad been concentrated in the open air for 4 or 5 days with no-\nthing even to sit on except the ground. Then they had been herded\ninto boxcars 80 persons per car, the car then nailed up and\nsent off to foreign destinations. The people are packed in the\ncars like sardines with no possibility of sitting or even moving.\nMany must have been dead on arrival. The friend was specifically\nasked by this source if the Germans were instrumental in this\noperation and he was assured by his friend that the people hand-\nling this affair were not Germans but Hungarian Gendarmes.\nThis report bears out others coming to the Legation from\ndifferent sources that in the main the Hungarian Police have\nthemselves been the instrument for arresting and deporting Jews\nfrom Hungary under conditions which are tragically cruel.\nJOHNSON\nRegraded Unclassified\n278\nCABLE TO MINISTER HARRISON AND McClelland, Bern, Switzerland\nReference in made to your 4604 of July 19 and 5040 of August 5.\n1. In addition to taking action requested in Department's 2715 of August 7,\nplease express to the Foreign Office the appreciation of this Government for the\ninformation contained in your 4604 and 5040. In order that the Swiss Government\nmay be fully advised as to the attitude of this Government on this subject, you\nmay make available to appropriate officials of the Foreign Office the text of the\nreply given by this Government on August 11 to Intercrose in accordance with De-\npartment's 2657 of August 2 and 2715 of August 7.\nPlease request the Swise Foreign Office to inform Hungarian authorities that\nalthough this Government has taken note of the communication reported in your 5040,\nit does not accept the reasoning therein contained and reserves the right to re-\nturn at a later date to the purported facts therein related. Hungarian authorities\nshould further be informed that the limited assurances contained in such communi-\ncation serve only to prompt e reiteration of this Governments' warning that all\nthose who share the responsibility for the persecution of Jews and other minori-\nties will be brought to justice. Hungarian authorities should also be informed\nthat it is this Government's strong view that the deportation of any category\nof Jews comes within the foregoing and that permission freely to emigrate and\nRed Cross supervision of treatment and living conditions must as a minimum be\nextended to all categories of Jews.\n2. A wide discrepancy is noted to exist between various communications and\nreports regarding Hungarian Government's offer relating to treatment of Jewn.\nFor obvious reasons, this Government bases its position on version communicated\nthrough Swise Foreign Office and contained in your 4604, and proposes to continue\nto do 80. Nevertheless, it is anxious to ascertain the precise nature of the\nHungarian offer and attitude. Please, therefore, without departing from the\nabove stated position of this Government, make discreet and informal inquiries\nfrom such sources as are available to you concerning following principal uncer-\ntainties:\nHave deportations been definitely stopped for all categories or\nonly suspended, and if 80, for how long and for what categories?\nTo what extent will Jews in Hungary be permitted and in fact\nenabled to procure food and other necessities through ordinary,\ncommercial channels and aside from Intercross action?\nTo what extent is it possible to expect that stoupage of de-\nportations and other forms of actual danger to life would continue\neven in the absence of actual sizeable emigration of Jews from Hun-\ngary during hostilities?\nTo what extent is emigration to countries other than Palestine\npermitted to Jews over ten years of age?\nCould emigration\n279\n-2+\nCould emigration be conducted in such a way 89 to prevent break-\ning up of families, with children under ten separated from perents?\nTo what extent, in view of internal situation in Hungary, 1e\nit possible to count on Hungarian promises being made effective and\ncontinuing up to the termination of hostilities?\nPlease advise Department and Board as soon as possible of answers to any of\nabove questions.\n3. In the light of military and political situation, it appears here that\nmain emphasis should be placed now on inducing appropriate Hungarian circles to\nmaintain and strengthen the newly reported relaxation of Jewish regime in Hun-\ngary and to apply such relexation to all categories of Jews in Hungary. Pre-\nventing deportations and assuring tolerable living conditions for all Jews in\nHungary, if feasible, seems more important than assistance in clandestine escape\nof individuals and groups. Please advise of any information and developments\non this point.\n4. With reference to 230 from Amembassy London to you, the broad program\nenvisaged above and in Department's 2657 might be jeopardized by limited scope\nof approach suggested by said 230 from London. Therefore, it is not (repeat\nnot) thought advisable that you limit any of your demarches to children under\nten and the supply problem which are the only items dealt with in 230 from\nLondon. But you are authorized, of course, to give the assurance concerning\navailability of supplies for Hungarian refugees through blockade in line with\n230 from London.\nRepeat to Amembassy London.\nTHIS IS WRB BERN CABLE NO. 129\n9:30 a.m.\nAugust 18, 1944\nBAkzin:ml 8/16/44\n280\nCABLE TO MINISTER HARRISON AND McCLELLAND, BERN, SWITZERLAND\n1. Reference is made to your 5040 of August 5 section 3 near end.\nThe following 18 the substance of similar information contained\nin note of Hungarien Legation, Stockholm, to Swedish Foreign Office: QUOTE\nit was further ordered that future deportees for labor service will have\nright of supervision by Hungarian Red Cross representatives in order to\navoid further charges of brutality. UNQUOTE\n2. In view of issue involved, i.e. possible extermination of 400,000\nJews already said to have been deported, please suggest to Intercross the\nurgency of contacting Hungarian authorities end Hungerien Red Cross over\nall camps to which Jews from Hungary have been deported in the past as\nwell.\n3. Please request Swiss Foreign Office to transmit to appropriate\nHungarian officials a message in the following vein: QUOTE With further\nreference to Hungarian communication (referred to in your 5040 of August\n5), the Government of the United States notes the explanation contained\nin said communication regarding Jews deported from Hungary to the effect\nthat they have been INNERQUOTE placed at disposal of German Government\nas workers as was case for years for tens of thousands of workers of\nHungerian nationality and Christian faith. KND OF INNERQUOTE\nIn view of the policy of the German Government with regard to Jews,\nwhich, the U.S. Government assumes is well-known to Hungarien Government,\nthe Government of the United States would appreciate 8. statement of such\nmeasures which have been taken and are being taken by Hungarian authorities\nto insure humane treatment of Jews placed at Germany's disposal and to\nsafeguard them against stervation and other forms of persecution.\nThe Hungarian authorities will readily perceive that unless such\nmeasures are taken with respect to all Jews INNERQUOTE placed at disposal of\nGerman Government END OF INNERQUOTE the explanation offered would appear\nto be at utter variance with the facts and any cases of abuse will be im-\nputed to those Hungarien authorities responsible for placing such Jews\nat Germany's disposal.\nPrompt response to the inquiry herein made is being awaited by the\nGovernment of the United States with extraordinary interest. UNQUOTE You\nmay, of course, in transmitting the foregoing to Swies Foreign Office\nadjust language in your discretion.\nTHIS IS WRB CABLE TO BERN NO. 130\n9:30 a.m.\nAugust 18, 1944\nBAkzin:ml 8/17/44\nRegraded Unclassified\n281\nJABLE TO MINISTER HARRISON AT BERN AND McCLELLAND FROM THE DEPARTMENT AND THE\nWAR REFUGEE BOARD\n(1) Reference your 4983 of August 3, Section 2. It is not (repeat\nnot) the policy of this Government to deal in specific numbers. You may in\nyour discretion, however, authorize the Swies Foreign Office to reply to in-\nquiry of German Legation, Budapest, by referring to the position of this Govern-\nment as indicated by items 2 end 3 of Department's 2605 of July 28, WRB's 94,\nDepartment's\nof\nWRB's 122, and Department's 2657 of August 2\nand item 3 below.\n(2) Notwithstanding recent developments as indicated in your 5197\nof August 11, this Government intends to pursue further the reported offers\nof Bungarian authorities as typified by your 4604 of July 19.\n(3) Accordingly, please request appropriate officials of the Swiss\nGovernment to advise enemy governments, particularly Germany and Hungary, that\nAmerican consular officers in neutral countries have been authorized to issue\nan immigration visa to the alien husband, wife, parent, and unmarried minor\nchild of an American citizen, and the wife and unmarried minor child of an\nalien resident of the United States who has been in an area controlled by Ger-\nmany or any of Germany's allies, provided that such person presents himself\nto an American consular officer and if sound not to be disqualified for a\nvisa. At the same time, please attempt to secure the prompt agreement of\nthe Swise Government to advise enemy governments of Switzerland's willingness\nto permit the entry into Switzerland of persons falling within the categories\ndescribed above. You may assure Swiss officials that any such persons 80 ad-\nmitted will be adequately maintained and that any who may be found not (repeat\nnot) to be qu lified for the issuance of a visa will be evacuated as promptly\nas possible. Similar requests are being made of Sweden, Spein, Turkey, and\nPortugal.\n(4) Consular officers in Switzerland are hereby authorized to issue\nimmigration visas to any alien who is the husband, wife, parent, or unmarried\nminor child of an American citizen and on whose behalf nonquota or first\npreference status has been established by the approval by the Department of\nJustice of a petition filed by such citizen relative, or who in the wife or\nunmarried minor child of an alien lawfully admitted into the United States\nfor permanent residence and as such in entitled to second preference immigra-\ntion status. The issuance of visas 1s subject to the proviso, however, that\n(a) such person other than a child under 16 years of age is found upon tele-\ngraphic reference to the Department for security check not to be the subject\nof an adverse report or to be open to reasonable suspicion because of the cir-\ncumstances of the case such 85 those attending the release of a male applicant\nof military age, (b) such person is not affirmatively found by the consul to\nbe inadmissible into the United States under the law, or (c) the consul does\nnot consider that the case is one which should be recommended for considera-\ntion under the committee procedure.\n282\n-2-\nAppropriate private agencies are being advised of the foregoing so\nthat the filing of petitions by citizen and resident alien relatives of victims\nof persecution may be expedited, and names of persons whose status within the\ncategories mentioned above in established will be cabled to you from time to\ntime. If any persons within such categories should arrive in Switzerland after\nSwiss have advised enemy governments in accordance with item 3 above, but prior\nto any notification to you of the establishment of their status, please advise\nBoard promptly of their names and of the names and addresses of relatives claimed\nin the United States.\n(5) Please keep Department and Bard advised of any developments in\nthis program. Reference your 5042 of August 5 and your 5248 of August 12.\nPlease express to M. Pilet Golaz the appreciation of Department and Board.\nTHIS IS WRB BERN CABLE NO. 133.\nAugust 18, 1944\n3:50 p.m.\nA$Lesser:tmh 8/17/44\nRegraded Unclassified\n283\nCABLE TO MINISTER HARRISON AND McCLELLAND, BERN, SWITZERLAND\nPlease transmit the following message to Dr. Gerhard\nRiegner, 37 Quai Wilson, Geneva:\nQUOTE Approached by Belgian Legation, ICRC stated its\ninability to again ask Germans for authorization to visit\nJewish camps in Belgium. ICRC fears that a new request would\nendanger sending foodstuffs these camps.\nIt is our conviction that by stressing repeatedly the\nright interned Jews the treated civilian internees by analogy\nGeneva Convention, the Red Cross could only improve their\nsituation. Energetic action Red Cross Hungarian Jews proves\nauthority this Committee could still achieve much, especially\nat this stage of the war. Besides, wonder whether foodstuffs\nreally reach Jewish internees Belgian camps. Please intervene,\nwire. World Jewish Congress. A. Leon Kubowitzki. UNQUOTE\nTHIS IS WRB CABLE TO BERN NO. 131\n9:30 a.m.\nAugust 18, 1944\nBAkzin:ml 8/16/44\nRegraded Unclassified\n284\nCABLE TO MINISTER HARRISON, BERN, FOR MCCLELLAND FROM WAR REFUGEE BOARD.\nPlease deliver the following message to Mrs. Fanny Hrsch, Comite\nRefugies Intellectuels, 7 Rue Gautier, Geneva, from Fred S. Weissman of\nSelfhelp of Endgres from Central Europe, Inc.:\n\"Your message of July 28th reports credit of 21 (?) Swiss\nfrancs. This is not understandable, We transmitted four\ntimes $3,000, on March 8, April 13, May 1, and July 10, and\n$5,000 on June 14. Transferring another $3,000 today. Hoping\nthat your work is continuing. Enlist cooperation of Pierre Levi\nLegrand-Schwarz, Hotel Russie, Geneva and Leopold Ettlinger, c/o\nSchaub, Pestalozzistr. 35, Zurich. Expecting further reports.\"\nTHIS IS BERN CABLE NO. 132\n12:10 p.m.\nAugust 18, 1944\nRDrury 8/18/44\nRegraded Unclassified\n285\nFG\nDEPARTMENT\nPLAIN\nAugust 18, 1944\nAMLEGATION,\nBERN.\n2843, Eighteenth\nYour despatch no. 8466, June 12, 1944.\nCelia Mandelbaum, number 125 on the list under\nreference should read Sylvia Helena Mandelbaum.\nHULL\n(AEC)\nSWP:RCE:FAH S/CR\n8/16/44\nWRB\nRegraded Unclassified\n286\nE00-15\nAnkara\nDistribution of true\nreading only by special\nDated August 18, 1944\narrangement. (SECRET W)\nRec'd 6:45 a.m. 19th\nSecretary of State,\nWashington.\n1514, August 18, 3 p.m.\nPrior to the receipt of Department's 685, August 7\nWRB 94 had already taken up with the Turk Ministry of\nForeign Affairs as reported in my 1430, August 5 the\nmatter of the issue of Turk transit visas to persons in\nHungary holding Palestinian certificates or American\nimmigration visas issued on or after July 1, 1941. The\nSecretary General assured me that his Government would\nbe glad to take the action requested at once and sub-\nsequently the Embassy was informed that instructions\nhad been issued to the Turk Consul in Budapest to issue\ntransit visas on application to any number of Jews who\napplied for them provided they held one of the following\ndocuments: (one) an American immigration visa issued\non or after July 1, 1941; (two) a letter from the Jew-\nish Agency in Istanbul certifying that the holders has\nbeen granted a Palectinian immigration certificate;\n(three) a certificate issued by Kraus the Jewish Agency\nrepresentative in Budapest to the effect that the bearer\nis a Jew; (four) an appropriate certificate issued by\nthe Swiss Legation or an endorsement on a child's pass-\nport under the \"five thousand\" scheme. At the same time\nTurk Consuls at Burgas and Constanza were authorized to\ngrant between them up to 400 visas every ten days to\npersons bearing one of the documents mentioned above.\nI have taken no action on London's 46 of July 29.\nAfter consultation with my British colleague I informed\nLondon that we were agreed that no action should be\ntaken pending further instructions in view of the fact\nthat the Swedish Minister had informed us that the\nSwedish Government had announced that it was prepared\nto receive in Sweden Jewish children from Hungary. I\nstated that the British Ambassador was reporting this\ndecision to London in response to instructions which he\nhad received from the Foreign Office. I further in-\nformed our Embassy in London that the Turk Government\nhad already agreed to issue instructions to their\nrepresentatives in Hungary authorizing them to issue\ntransit visas to all refugees in the possession of\nPalestinian certificates or American immigration visas\nissued on or after July 1, 1941.\nKELLEY\nCSB\nRegraded Unclassified\n287\nLL-261\nAnkara\nDistribution of\ntrue reading only by\nDated August 18, 1944\nspecial arrangement.\n(SECRET w)\nRec'd 5:52 p.m., 19th.\nSecretary of State,\nWashington.\n1515, August 18, 4 p.m.\nFOR PEHLE WRB FROM HIRSCHMANN.\nAnkara's 134\nIn view of the opportunities that appear to be\ndeveloping to rescue and ameliorate the condition of the\nJewish population in Bulgaria we are of the opinion\nthat every available resource should be utilized to\nachieve that end. In view of the above, it would be\nhelpful in my opinion if Mr. Seckel who has had wide\nexperience in Bulgarian matters and has wide acquaintance\nwith Bulgarian personalities whose aid would be helpful\ncould proceed to Istanbul to assist us in these efforts.\nIf you agree I should appreciate your making the\nnecessary arrangements for Seckel to procede to Turkey,\nprovided that he can travel as an American citizen and\nthat he can arrive here without delay.\nA very recent arrival from the States who knows Seckel\nconfirms this view.\nKELLEY\nWFS\nWMB\nRegraded Unclassified\n288\nE0C-6\nAnkara\nDistribution of\nDated August 18, 1944\ntrue reading only by\nRec'd 3:47 a.m. 19th\nspecial arrangement\n(SECRET w)\nSecretary of State,\nWashington.\n1516, August 18, 5 p.m.\nFOR PEHLE FROM HIRSCHMANN WRB (Ankara No. 135)\nBagrianoff in his speech to Parliament on August 17,\nreferred to the Jewish question stating that \"the\nJewish question must be liquidated and that this can be\nachieved without causing new and useless conflicts and\nsufferings either to the Bulgarian people or to its com-\nrades.\" It is reported here that the abrogation of\nthe anti-Jewish laws will be recommended by Bagrianoff\nand that a measure to that effect will be introduced\nin Parliament in the course of the next few days.\nIt is strongly urged that the WRB without delay\nissue propaganda and take appropriate measures designed\nto encourage the Bulgarian Government to take the de-\nsired steps and to induce it to take inmediate action.\nBagrianoff is eager to secure a favorable reaction\nin and the good will of the United States. It is urgent\nthat this opportunity be exploited to the utmost.\nIt 18 also suggested that en appropriate message\n(Eagrianoff))\nfrom the Board to me to be read to Balabanoff or\nSimond would be especially helpful at this moment.\nKELLEY\nDU\nWFS\nRegraded Unclassified\n289\nCABLE TO OFFICER IN CHARGE, AMEMBASSY, ANKARA, AND HIRSCHMANN, FROM THE DEPARTMENT\nAND THE WAR REFUGEE BOARD\n(1) Please express Department's and Board's appreciation to the Secre-\ntary General of the Ministry of Foreign Affairs for attitude reported in your 1430\nof August 5. In order to take all possible advantage of report set out in item 1\nof Department's 665 of July 28, WRB's 83, this Government is prepared to take\nsimilar action ontehalf of relatives of American citizens and resident aliens\nentitled under the law to nonquota or preference quota immigration status.\n(2) Accordingly, consular officers in Turkey are hereby authorized\nto issue immigration visas to any alien who is the husband, wife, parent, or\nunmarried minor child of an American citizen and on whose behalf nonquota or\nfirst preference status has been established by the approval by the Department\nof Justice of a petition filed by such citizen relative, or who is the wife or\nunmarried minor child of an alien lawfully admitted into the United States for\npermanent residence and as such 18 entitled to second preference immigration\nstatus. The issuance of visas is subject to the proviso, however, that (a)\nsuch person other than a child under 16 years of age is found upon telegraphic\nreference to the Department for security check not to be the subject of an ad-\nverse report or to be open to reasonable suspicion because of the circumstances\nof the case such as those attending the release of a male applicant of military\nage, (b) such person is not affirmatively found by the consul to be inadmissible\ninto the United States under the law, or (c) the consul does not consider that\nthe case is one which should be recommended for consideration under the committee\nprocedure.\n(3) Consular officers in Switzerland, Sweden, Portugal, and Spain are\nsimilarly authorized and you should advise the Foreign Office that the Swiss\nGovernment is being requested to advise enemy governments, particularly Hungary\nand Germany, that American consular officers in neutral countries have been auth-\norized to issue an immigration visa to the alien husband, wife, parent, and un-\nmarried minor child of an American citizen, and the wife and unmarried minor child\nof an alien resident of the United States who has been in an era controlled by\nGermany or any of Germany's allies, provided that such person presents himself\nto an American consular officer and to found not to be disqualified for a visa.\nAt the same time, please attempt to secure the prompt agreement of the Turkish\nGovernment to advise enemy governments of Turkey's willingness to permit the\nentry into Turkey of persons filling within the categories described above.\nYou may assure Turkish officials that any such persons so admitted will be\nadequately maintained and that any who may be found not (repeat not) to be\nqualified for the issuance of a visa will be evacuated as promptly as possible.\nSimilar requests are being made of Switzerland, Spain, Sweden, and Portugal.\n(4) Appropriate private agencies are being advised of the foregoing\nso that the filing of petitions by citizens and resident alien relatives of\nvictims of persecution may be expedited, and names of persons whose status\nwithin the categories above mentioned is established will be cabled to you\nRegraded Unclassified\n290\n-2-\nfrom time to time. If any persons within such categories should arrive in Turkey\nafter Turkey has advised enemy governments in accordance with item 3 above, but\nprior to any notification to you of the establishment of their status, please ad-\nvise Board promptly of their names and of the names and addresses of relatives\nclaimed in the United States.\n(5) Please keep Department and Board advised of any developments in\nthis program.\nTHIS IS WRB ANKARA CABLE NO. 102\nAugust 18, 1944\n3:40 p.m.\nLSIesser:tmh 8-17-44\nRegraded Unclassified\n291\nCaracas, August 18, 1944\nCOMMIDENTIAL\nNO. 6374\nSubject: Venezuela agrees to admit Jewish\nrefugees from Hungary.\nThe Honorable\nThe Secretary of State,\nWashington, D.C.\nSir:\nI have the honor to report that I was today\ninformed by Mr. Albert J. Feinquinos, of the Venesuelan\nJewish Association, that following the receipt on\nAugust 12, 1944 of a cable from the HIAS-ICA Emigration\ninsociation, 396 Fourth Avenue, New York City, stating\nthat the Hungerian Government is prepared to permit the\ndeparture of all Jonu able to obtain visas for any other\ncountry, he and feur associates took up with President\nMedina the possibility of entrance into Venezuela.\nPresident Medina was asked to allow entrance visas into\nVenesuela for (a) children under ten years of age and\n(b) adults under temporary visas for the war's duration\nto be quartered in free camps similar to those in the\nUnited States, England and Canada.\nMr. Feiquines informed no that as a result of the\ndiscussions which the group of five including himself had\nwith President Medina, the Venesuelan Government yester-\nday sent cabled instructions to its Legation at Lisben\nauthorizing it to grant visas to Jewish refugees who\napply, regardless of age and without restrictions.\nRespectfully yours,\nJoseph Flack\nCharge d'Affaires ad interim\nJF:Jr\nCOPY NO\n292\nNOT TO BE He TR,NSMITTED\nSECRET\nOPTEL No. 269\nInformation received up to 10 A.M. 18th August 1944,\n1. NAVAL\nAttacks by human toppedoes tool place yesterday morning off\nBritish sector NORMANDY BEACHES. About 18 accounted for including\nnine destroyed by aircraft. One 5,000 ton ship already aground\nwes hit and one A.A. landing craft was sunk.\nSouthern France Bombardments of enemy concentrations north\nof CAP NEGRE by B. British Cruiser and a\nU.S. Cruiser, took place on 15th. The British Cruiser and a U.S.\nDestroyer also bombarded north side of PORT CROS island,\n2. MILITARY\nPolish armour thrusting southeastwards beyond TRUN have\njoined U.S. units and thus cut off German forces in the Salient.\nPressure has been meintained against all sides of the area aurrounded\nIn the West a British armoured formation has driven 7 miles into the\nGerman positions while U.S. forces have made successful attacks from\nthe south.\nSouthern France Only slight opposition encountered on the\nbeaches and in coastal area immediately behind; considerable\nprogress made. U.S. troops of the three divisions which landed\nbetween AGAY and CAVALLIRE have reached THEQULE on the right, have\nmade contact with the airborne troops north of LE MUY and have also\nmade contact with French Commando troops which landed at CAP NEGRE\nand are now within one mile of PIERREFELI pushing north and west\nfrom the assault area forward elements have been reported at\nDRAGUIGNAN LORRUES and LE LUC. French troops began unloading on\nthe beaches on 16th. Prisoners to midnight 16th/17th 2,500.\nRussia Russians reached East Prussian frontier at point\n40 miles W.S.\". KOVNO: they also repulsed German\nattacks east of PRAGA.\n3. AIR\nWestern Front 16th/17th. 1,371 nons STETTIN, 900 KIEL,\nand 527 nea mines laid.\n17th, 54 Helifaxes dropped 265 tone on shipping at BREST and all\nreturned sefely 486 eiroroft at*acked trunsport N.S. FRANCE and\nBELGIUM destroying 309 units rolling stock 28 locumotives, 21 oil\ntanker and three bridges. 299 bondors ettacked bridges over River\nRISLY dropp! 470-tous- Fighter bombers destroyed three headquarters\nbuildings North et INCLEIX, 189 fighters destroyed 59 motor\nvehicles in the battle area.\n17th/18th. 37 Mosquitços MANNHEIN, 206 aircraft other\ntaskes. All returned safely.\nGermany Liberators dropped 190 tons en B. hydrogen plant\nnear with good renults; two\nbombers, one fighter missing.\nItaly And Southern France 16th. 138 medium and light\nhonbers with 711 fighters\nattacked communications eto; one bomber, on fighter missing.\nSumania 17th. 288 escorted Liberators dropped 501 tona\non three oil refineries PLOESTI. Enemy casualties\n2:1:0 ours 17 bombers, one fighter missing.\nGerman Activity During 24 hours ending 6 A.M. 18th,\n116 flying bomba plotted.\nRegraded Unclassified"
}